What's happening
This bill requires financial impact reports for state or agency projects using eminent domain for economic development in New York.
Why it matters
Increases transparency and accountability. by requiring a detailed financial impact report before the government or its agencies can use eminent domain for economic development, ensuring decisions are backed by clear economic data.
Mandates analysis of public costs and benefits. , including projected tax revenues, direct financial assistance, and the overall economic justification for taking private property, which may help prevent misuse or overuse of eminent domain.
Requires public disclosure of government subsidies. (like grants, loans, and tax breaks) to local development corporations involved in these projects, providing taxpayers with a clearer picture of how public funds are being spent and why.
Introduces a review and recommendation process. where state agencies must vet and potentially advise on the financial impact reports, aiming to improve oversight and the quality of economic development decisions involving eminent domain.
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Who cares
Headline styles
Require Eminent Domain Financial Reports
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to judiciary
- Referred to judiciary
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5185
2017-2018 Regular Sessions
IN SENATE
March 10, 2017
Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary
AN ACT to amend the eminent domain procedure law, in relation to requiring financial reports for real property acquired by the state, including any agencies and authorities, through eminent domain
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The eminent domain procedure law is amended by adding a new section 306 to read as follows:
§ 306. Financial impact reports. Notwithstanding any other provision of law to the contrary, any contract entered into by a state agency, state authority or a local development corporation under which such local development corporation is engaged in providing or administering economic development benefits on behalf of the state and expending state capital appropriations in connection with any project or action that invokes the power of eminent domain pursuant to this chapter on the basis of economic development, as determined by judicial review, shall be accompanied by a financial impact report. Such report shall include, but not be limited to (i) an analysis of the estimated costs and benefits of the proposed project or action; (ii) the estimated amount of retained or additional tax revenue estimated to be derived from the project for the next three succeeding years; (iii) the amount of assistance received by the local development corporation in the form of a loan, grant, or tax benefit since the beginning of the project period; and (iv) the present value of the future assistance estimated to be given for the duration of the project period. Where such report is prepared by a local development corporation, the state agency or state authority, in consultation with such other state agencies as it deems appropriate, shall review such report and make recommendations, if necessary.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00326-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the eminent domain procedure law, in relation to requiring financial reports for real property acquired by the state, including any agencies and authorities, through eminent domain
Purpose
To provide that local development corporations provide an estimated cost benefit analysis of proposed projects, the additional tax revenue anticipated from the project and assistance to be provided.
Summary of provisions
Section 1 amends eminent domain procedure law by adding a new section 305 to require that local development corporations include a financial impact report when invoking power of eminent domain. This section requires that the report include: i) an analysis of estimated costs and benefits; u) estimated retained or additional tax revenue for the next three years; iii) amount of assistance being provided from the local development corporation; and iv) present value of the assistance being provided.
Section 2 sets for the effective date.
Justification
The constitution guarantees that "private property" shall not be taken for public use without just compensation." In Kelo v City of New London, the U.S. Supreme Court allowed for the forcible transfer of property from one private owner to another in support of economic development.
The eminent domain procedure law has not been updated in response and as a result although it can be said to be a "public use" to support economic development the state procedures do not provide for gathering of information relating to economic development in the process. We must update the laws to ensure that the public has full understanding of the anticipated economic costs and benefits associated with eminent domain for the subject project.
It is imperative that if eminent domains is being used for purposes of economic development we have a full assessment of the costs and benefits of the project that will benefit from the use of economic domain, including tax revenue.
Legislative history
2015-16: S.5415 Referred to Judiciary
Fiscal implications
This bill will add a minimal cost to the process of eminent domain however because it is providing needed information about financial costs and benefits it will allow decision makers to make decision that bring in additional revenues that will offset the added cost to the process.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.