What's happening
This bill prohibits the use of public funds, incentives, or tax exemptions for projects already under active construction, with exceptions for unexpected environmental contamination.
Why it matters
Targets "double-dipping" by developers. By refusing public funds or tax breaks to projects already under active construction, the bill seeks to prevent developers from seeking government incentives for work they have already committed to do, ensuring that subsidies only influence new decisions.
Potentially lowers public spending on economic development. With fewer projects qualifying for incentives, municipalities and agencies could see reduced expenditures or lost tax revenues, potentially freeing up resources for projects that genuinely need financial support to proceed.
Levels the playing field for new projects. The change discourages companies from moving ahead with construction before securing public incentives, which could foster more transparent and competitive application processes and prevent retroactive deals.
Makes an exception for unforeseen environmental contamination. The bill recognizes that unexpected environmental issues discovered mid-construction can drastically increase costs, so projects facing these challenges may still qualify for public assistance, ensuring they are not unfairly penalized.
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Who cares
Industrial development agencies
The bill would bar agency funds, incentives, subsidies and tax exemptions for projects already under active construction when they apply, with an exception for newly discovered environmental contamination that significantly increases costs.
Developers and project owners
Starting site clearing, excavation, foundations or structural construction before applying would make their projects ineligible for this assistance unless the contamination exception applies.
Developers facing environmental contamination
Projects where contamination is discovered during development and requires a significant increase in costs could still qualify for assistance despite construction having begun.
Headline styles
Stop Subsidies for Ongoing Projects
Plain English, a few words. Used as the page title.
Sponsors
Assembly Member · Assembly District 40
2 Co-sponsors
History
- Referred to local governments
- Referred to local governments
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7342
2019-2020 Regular Sessions
IN ASSEMBLY
April 25, 2019
Introduced by M. of A. KIM -- read once and referred to the Committee on Local Governments
AN ACT to amend the general municipal law, in relation to preventing the use of funds, financial incentives, subsidies or tax exemptions for projects already in development
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 854 of the general municipal law is amended by adding a new subdivision 21 to read as follows:
(21) "In development" - shall mean a project for which active construction, including but not limited to site clearing, excavation, erection of building foundations or structure, has already commenced.
§ 2. Section 862 of the general municipal law is amended by adding a new subdivision 3 to read as follows:
(3) Except where environmental contamination requiring a significant increase in project costs is discovered during the development of the project, no funds, financial incentives or subsidies of the agency shall be used in respect of any project which is already in development at the time such project applies for such funds, financial assistance, incentives or subsidies.
§ 3. Section 874 of the general municipal law is amended by adding a new subdivision 13 to read as follows:
(13) Except where environmental contamination requiring a significant increase in project costs is discovered during the development of the project, no tax exemptions shall be granted to any project if the project is already in development at the time such project applies for the issuance of the tax exemption.
§ 4. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10239-05-9
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.