Makes various provisions to reform local development corporations and industrial development agencies: conflicts of interest, standard tax exemption policies, etc.

1 Co-sponsor

• Bill Perkins

Title of bill

An act to amend the not-for-profit corporation law and the general municipal law, in relation to reforming local development corporations and industrial development agencies

Purpose or general idea of bill

To provide greater transparency, oversight and increased public participation in the operation of LDCs and IDAs.

Summary of specific provisions

Section 1 Section 1411 of the not-for-profit protection law is amended by adding a new subparagraph (2-a) which requires an economic impact statement be prepared for any action that will have a significant impact on the local economy and community.

Section 2 re-letters paragraph (i)of section 1411 of the not-for-profit corporation law paragraph (j) adds a new paragraph (i) which regulates who may serve on LDC boards and be employees of LDCs to mitigate conflict-of-interest.

Section 3 regulates the size and composition of the agency.

Section 4 creates a standard tax exemption policy for IDAs and creates other reporting requirements.

Section 5 creates greater municipal input. It allows local governments to have input and decision-making power on LDC and IDA bonding, contracting and eminent domain powers.

Section 6 requires the comptroller to prescribe rules on standardizing the calculation of tax benefits for IDAs and LDCs.

Section 7 requires "economic impact statements" be completed for major projects. This is similar to the environmental impact statement process. Amends requirements for publishing guidelines and makes technical amendments to the public hearing process.

Section 8 requires any lease payments, revenues or other earnings of the agency shall be paid to the local governing body of the municipality for whose such benefit the agency has been established.

Section 9 places an October 1, 2018 deadline for IDAs to issue any further bonds or notes.

Section 10 requires that public works projects let be the agencies create jobs that pay the prevailing wage.

Section 11 Effective Date

Justification

There is little oversight over LDCs and IDAs but both entities have tremendous power in local economic decision-making. While they serve important functions, theme needs to be greater transparency, oversight and accountability; especially when taxpayer money is used. This bill would add greater transparency by the addition of new standardized reporting requirements, provides greater local public input by creating an "economic impact statement" process, creates new rules governing board membership, makes sure that jobs created from subsidies pay prevailing wages and provides for greater input by local governments in the decision-making process of the entities.

Fiscal implications

None known.

Effective date

This act shall take effect on the sixtieth day after it shall have become a law.