What's happening
This bill requires New York economic development subsidy agreements to include repayment provisions if recipients relocate out of state within five years.
Why it matters
Protects taxpayer investment. By requiring repayment if a subsidized business relocates out of state within five years, the bill ensures that public funds are not used to support companies that quickly abandon New York, helping to safeguard the intended economic benefits for local communities.
Encourages long-term job creation and retention. The repayment provision incentivizes businesses to maintain operations and jobs in New York for at least five years, discouraging short-term commitments and promoting more stable economic development.
Standardizes accountability in subsidy agreements. Making repayment clauses mandatory in all future economic development contracts creates clearer expectations and uniform enforcement, potentially reducing loopholes and inconsistent application across different programs.
Could affect business decision-making. Companies considering state subsidies will need to weigh the risk of future repayment obligations, possibly leading to more careful planning and a higher likelihood that recipients are genuinely committed to New York.
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Who cares
Headline styles
Claw Back State Grants
Plain English, a few words. Used as the page title.
Sponsors
8 Co-sponsors
3 Multi-sponsors
History
- Referred to economic development
- Referred to economic development
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Claw Back Corporate Subsidies
In Senate Committee · Commerce, Economic Development And Small Business · Sponsor Kevin S. Parker
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
776
2017-2018 Regular Sessions
IN ASSEMBLY
January 9, 2017
Introduced by M. of A. BICHOTTE -- read once and referred to the Committee on Economic Development
AN ACT to amend the economic development law, in relation to including among the commissioner's duties a mandate to include in all economic development subsidy agreements provisions allowing the state to recover previously issued awards from fund recipients in the event of relocation outside the state
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 19 of section 100 of the economic development law is amended by adding a new paragraph (c) to read as follows:
(c) to cause to be included in any contract, award agreement, memorandum of understanding, loan agreement or other such device used to transfer money of the state to a recipient through an economic development program of the state provisions requiring the repayment to the state by a fund recipient of any award in the event that such recipient relocates outside the state within five years from the date of receiving such award. Repayment of any award to the state shall be made pursuant to the time frame specified in the award agreement.
§ 2. This act shall take effect immediately, but shall apply only to economic development awards made after such date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01174-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.