What's happening
This bill requires local agencies to reclaim financial assistance from projects that fail to meet job or agreement terms.
Why it matters
Strengthens accountability for public funds. By requiring agencies to actively reclaim financial assistance from projects that fall short on job creation or break agreement terms, the bill ensures taxpayer money is not lost to underperforming or non-compliant projects.
Direct financial consequences for non-compliance. Projects that fail to meet agreed-upon job or project benchmarks, or that materially violate agreements, will face mandatory financial clawbacks, incentivizing recipients to fulfill their commitments.
Restores lost tax revenue to communities. Any reclaimed tax exemptions must be redistributed to the affected local tax jurisdictions, helping to offset the financial impact on schools, municipalities, and other public services when a project does not deliver as promised.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Claw Back Failed Project Aid
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
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.
Claw Back Aid From Failures
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
7284
2019-2020 Regular Sessions
IN ASSEMBLY
April 18, 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 requiring the return of all or a part of the financial assistance provided for a project where the project has material shortfalls or material violations
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 11 of section 874 of the general municipal law, as added by chapter 563 of the laws of 2015, is amended to read as follows:
(11) Each agency shall develop policies for the return of all or a part of the financial assistance provided for the project, including all or part of the amount of any tax exemptions, as specified in the policy, which may include but shall not be limited to material shortfalls in job creation and retention projections or material violations of the terms and conditions of project agreements. The agency shall implement such policies created in accordance with this subdivision to return all or part of the financial assistance provided for any project where the agency's annual assessment of a project shows material shortfalls in job creation and retention projections or material violations of the terms and conditions of project agreements. All such returned amounts of tax exemptions shall be redistributed to the appropriate affected tax jurisdiction, unless agreed to otherwise by any local taxing jurisdiction.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10674-01-9
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.