What's happening
This bill allows the New York State Industrial Development Agency to provide loans, grants, and early-stage equity funding to private and public entities to promote economic development.
Why it matters
Broadens the tools available for economic development. by allowing the agency to not only issue loans, but also make grants and even take equity stakes in early-stage companies, which could foster more innovative business growth compared to traditional incentives.
Enables support for both public and private entities. (including legal entities beyond corporations), making it possible for a wider range of projects and partnerships—potentially including nonprofits or joint ventures—to access support.
Introduces mechanisms to safeguard local investment. , such as requiring early-stage funding recipients to return funds if they relocate outside the benefitting municipality within a set timeframe, potentially discouraging “poaching” by other regions and helping retain jobs and economic activity locally.
Mandates formal agreements for transparency and accountability. , requiring that all loans and grants be documented with specific terms and expectations, which could provide more oversight and clarity on how public funds are used in economic development efforts.
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Who cares
Headline styles
Allow IDA Loans and Grants
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to local governments
- Referred to local governments
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.
Expand IDA Funding Powers
In Senate Committee · Local Government · Sponsor Patrick M. Gallivan
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6763
2019-2020 Regular Sessions
IN ASSEMBLY
March 19, 2019
Introduced by M. of A. THIELE -- read once and referred to the Committee on Local Governments
AN ACT to amend the general municipal law, in relation to the powers of the New York state industrial development agency
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivisions 16 and 17 of section 858 of the general municipal law, as renumbered by chapter 356 of the laws of 1993, are renumbered subdivisions 19 and 20 and three new subdivisions 16, 17 and 18 are added to read as follows:
(16) To provide loans to any private or public corporation or any legal entity provided said loan is memorialized in an appropriate loan agreement and further provided that the loan proceeds are used in furtherance of the agency's corporate purposes;
(17) To provide grants to any private or public corporation or any legal entity provided said grant is memorialized in an appropriate grant agreement stipulating the services to be provided in furtherance of the agency's corporate purposes;
(18) Notwithstanding any other law, to provide seed and early-stage equity funding to any private corporation or any legal entity, in accordance with a plan to be developed by the agency, located within, or to be located within, the municipality for whose benefit the agency was created and that is in the seed, early stage or venture stage of development and that has the potential to generate additional economic activity in New York state provided, however, that funds received by the beneficiary private corporation or legal entity shall be returned if the beneficiary private corporation or legal entity leaves the municipality for whose benefit the agency was created within a period of time to be established by the agency;
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00199-01-9
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.