What's happening
This bill requires state economic development agreements to include provisions for repayment if recipients relocate out of New York within five years.
Why it matters
Protects taxpayer investment. by ensuring that companies receiving state economic development funds can’t simply take the money and leave New York without consequence, reducing the risk of public funds subsidizing jobs that move out of state.
Creates a financial deterrent for relocation. within five years, which may encourage businesses to maintain a longer-term presence in New York, supporting local employment and economic stability.
Establishes clear contractual obligations. for repayment, increasing transparency and accountability in state economic development deals and making it easier for the state to enforce recoupment if companies violate relocation terms.
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Who cares
Headline styles
Claw Back Corporate Subsidies
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to commerce, economic development and small business
- Referred to commerce, economic development and small business
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 State Grants
In Assembly Committee · Economic Development · Sponsor Rodneyse Bichotte Hermelyn
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3628
2017-2018 Regular Sessions
IN SENATE
January 25, 2017
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Commerce, Economic Development and Small Business
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.
Sponsor's memo
Title of bill
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
Purpose
To recover state revenue intended to retain business when the business relocates out of state prior to five years from the receipt of the award.
Summary of provisions
Subdivision 19 of section 100 of the economic development law is amended by adding a new paragraph (c) which would require any business that receives economic assistance from the State and subsequently relocates outside of New York State, to repay all such assistance received for the five years prior to such relocation. Repayment of any award to the state shall be made pursuant to the timeframe specified in the award agreement.
Justification
Provides for the recovery of economic development awards in cases where the recipient relocates outside the state.
Legislative history
2015-16: S.555/A.6752 - Died in Commerce and Economic Development and Small Business 2013-14: S.952/A.7239 - Died in Commerce and Economic Development and Small Business 2011-12: S.1893 - Died in Commerce and Economic Development and Small Business 2009-10: S.3307 - Referred to Commerce, Economic Development and Small Business
Fiscal implications
Savings for the state to provide funding to businesses that are dedicated to remaining in the State.
Effective date
This act shall take effect immediately, and shall apply only to economic development awards made after such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.