What's happening
This bill bans industrial development agencies from providing incentives for businesses to relocate within New York State, expanding restrictions to any plant, facility, or personnel moves.
Why it matters
Expands the scope of prohibited incentives by industrial development agencies (IDAs) to cover not just industrial or manufacturing plants, but any type of plant, facility, or even personnel relocations within New York State. This means a wider range of business moves are now ineligible for public subsidies if they simply shift within the state.
Closes loopholes that previously allowed incentives if a move was “reasonably necessary to preserve the competitive position” of a business. Now, incentives can only be granted to prevent a business from leaving the state entirely, making it harder for companies to leverage public funds for intra-state moves.
Aims to prevent local “job poaching” and competition between New York communities for existing businesses,. potentially fostering more equitable economic development and reducing wasteful local bidding wars using taxpayer money.
Explicitly includes the movement or unemployment of personnel as a prohibited result of incentivized relocations,. signaling a focus on protecting local jobs and preventing disruptions for workers when companies shift operations within New York.
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Who cares
Headline styles
Stop Local Job-Poaching Incentives
Plain English, a few words. Used as the page title.
Sponsors
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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.
Stop IDA In-State Relocation Deals
In Senate Committee · Local Government · Sponsor James Skoufis
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7200
2019-2020 Regular Sessions
IN ASSEMBLY
April 12, 2019
Introduced by M. of A. RYAN -- read once and referred to the Committee on Local Governments
AN ACT to amend the general municipal law, in relation to prohibiting industrial development agencies from incentivizing movements within the state
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 862 of the general municipal law, as amended by section 1 of part J of chapter 59 of the laws of 2013, is amended to read as follows:
(1) No funds of the agency shall be used in respect of any project if the completion thereof would result in the removal of [an industrial or manufacturing] any plant, facility or personnel of the project occupant from one area of the state to another area of the state [or], in the abandonment of one or more plants or facilities of the project occupant located within the state or the unemployment or relocation of any personnel who are employed by the project occupant, provided, however, that neither restriction shall apply if the agency shall determine on the basis of the application before it that the project is reasonably necessary to discourage the project occupant from removing such other plant or facility to a location outside the state [or is reasonably necessary to preserve the competitive position of the project occupant in its respective industry].
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10673-02-9
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.