Enacts the "just and open business subsidies act (JOBS act) of 2015"

Summary of specific provisions

Section One: Legislative findings.

Section Two: Title.

Section Three: Definitions.

Section Four: Adds sections 2990-2999 to the Public Authorities Law.

§ 2990: Requires all applications to State or local authorities to be submitted through the consolidated funding application ("CFA"). This section also outlines the rights and responsibilities of the authorities as it relates to the CFA.

§ 2991: Requires authorities offering subsidies to enter into a financial assistance agreement with the recipients of such subsidies.

§ 2992: Requires open meetings and public access to the documents used to determine whether to offer a subsidy.

§ 2993: Allows for authorities to recapture all or some of the money given as a subsidy when benchmarks (i.e., job creation, etc.) agreed to by the recipient fall short of success.

§ 2994: Requires the Department of Taxation and Finance to submit an annual budget accounting for uncollected tax revenue and an accounting of certain subsidy recipients.

§ 2995: Restricts the subsidizing of projects that do not meet minimum standards or violate the requirements discussed in § 2995.

§ 2996: Requires board representatives to meet certain criteria, including disqualification for appointment to the board if conflicts of interest or ethical conflicts exist.

§ 2997: Targeted hiring and the percentage of local hires which must be included in certain instances.

§ 2998: Payment in lieu of taxes restrictions.

Section Five: Amends subdivisions I and 2 of section 2800 of the Public Authorities Law to require annual reports and accounting of projects subsidized by the authorities and personal accountings by members of the local authorities.

Section Six: Effective date.

Justification

Industrial Development Agencies (IDAs) and other State and local authorities provide at least seven billion dollars annually in tax subsidies to select businesses. These tax subsidies too often force other taxpayers to pay higher property taxes or to suffer reductions in key services. Further, in the few programs where sufficient data is available, subsidies have had little or no impact on the economy, job creation, or the standard of living for workers. Given the desperate need for job creation in New York, but also taking into account the potential for waste in this multibillion dollar system, it is imperative that New York protects its taxpayers by taking stock of this "back-door spending," and assessing its effectiveness at job creation and economic development. The poor choices which many IDAs and other economic development authorities continue to make are, in part, due to a lack of oversight and accountability. This bill will provide the necessary oversight to ensure that New York taxpayers get their money's worth from their substantial investment in economic development.

Prior legislative history

2014 - reported from Senate Corporations, Authorities and Commissions Committee, died in Finance; died in Assembly Corporations, Authorities and Commissions Committee.

Fiscal implications for state and local governments

To be determined.

Effective date

This act shall take effect on the ninetieth day after it shall have become a law, provided, however, that effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date is authorized to be made and completed on or before such date.