What's happening
This bill denies economic development funding to businesses paying CEOs over 25 times their lowest-paid worker.
Why it matters
Statewide funding restriction. Bars loans, grants and other funding under the Economic Development Law and Urban Development Corporation Act when businesses exceed the pay ratio.
Broad compensation measure. CEO pay includes bonuses, stock and benefits. Part-time employees’ salaries are calculated as if they worked full time.
Mandatory records review. Requires the economic development commissioner and corporation board to request and examine payroll and other necessary records from funding applicants and recipients.
Albany, before your first meeting.
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Who cares
Businesses seeking development funding
Eligibility would depend on CEO compensation relative to the lowest-paid employee’s salary.
Economic development officials
The commissioner and corporation board would have to review compensation records to enforce the restriction.
CEOs and lowest-paid employees
Their pay would determine whether their employer qualifies for covered economic development funding.
Headline styles
Tie Business Aid to Pay
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Referred to economic development
- Referred to economic development
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2520
2019-2020 Regular Sessions
IN ASSEMBLY
January 23, 2019
Introduced by M. of A. GLICK, GOTTFRIED -- read once and referred to the Committee on Economic Development
AN ACT to amend the economic development law and the New York state urban development corporation act, in relation to limiting the use of economic development funds to certain corporations
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The economic development law is amended by adding a new section 107 to read as follows:
§ 107. Restrictions on economic development funding to certain corporations. No economic development loans, grants or other funds may be provided under the provisions of this chapter to any person, firm, partnership or corporation where the chief executive officer of such business entity receives a salary, including all remuneration, bonuses, stock and benefits, which is more than twenty-five times the amount of the salary of the lowest paid employee of such business entity. The salary of any part time employee shall be determined on a prorated basis, and calculated as if such employee was employed full time. The commissioner shall request and examine the payroll records and any other records of any business entity which receives or applies for any loan, grant or economic development funding under this chapter which are necessary to determine the salary amounts pursuant to this section.
§ 2. Section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, is amended by adding a new section 5-a to read as follows:
§ 5-a. Restrictions on economic development funding to certain corporations. No economic development loans, grants or other funds may be provided under the provisions of this act to any person, firm, partnership or corporation where the chief executive officer of such business entity receives a salary, including all remuneration, bonuses, stock and benefits, which is more than twenty-five times the amount of the salary
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05007-01-9
A. 2520 2
of the lowest paid employee of such business entity. The salary of any part time employee shall be determined on a prorated basis, and calculated as if such employee was employed full time. The board of directors of the corporation shall request and examine the payroll records and any other records of any business entity which receives or applies for any loan, grant or economic development funding under this act which are necessary to determine the salary amounts pursuant to this section.
§ 3. This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
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.