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S2805Senate2019-2020 Session

Require Eminent Domain Financial Reports

Official title

“Relates to requiring financial reports for real property acquired by the state, including any agencies and authorities, through eminent domain”

Sponsor Leroy ComrieSD-14Affects Legal
Status
In Senate Committee
Judiciary
Impact
3/10
Low
Passage
0%

Bill progress

Step 2 of 7

In committee · Judiciary

What's happening

This bill requires financial impact reports for any property acquired by New York State or its agencies via eminent domain for economic development projects.

Why it matters

  1. Enhances transparency and accountability. by requiring detailed financial impact reports whenever eminent domain is used for economic development, allowing the public and policymakers to better assess the true costs and benefits of such projects.

  2. Mandates disclosure of projected tax revenues, estimated costs and benefits, and all forms of assistance. (loans, grants, tax incentives) provided to local development corporations, providing a fuller financial picture of state-supported economic development efforts.

  3. Requires ongoing oversight. by having state agencies review and potentially recommend changes to reports prepared by local development corporations, introducing an additional layer of scrutiny to prevent misuse or overestimation of economic benefits.

  4. May influence decision-making and public debate. by making critical financial data available before property is taken, potentially affecting whether projects proceed and increasing the accountability of agencies and developers to affected communities.

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Who cares

Headline styles

Require Eminent Domain Financial Reports

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Leroy Comrie

Senator · Senate District 14

Chair, Corporations, Authorities And Commissions

No co-sponsors yet.

History

  1. Referred to judiciary
  2. Referred to judiciary

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

2805

2019-2020 Regular Sessions

IN SENATE

January 29, 2019

Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary

AN ACT to amend the eminent domain procedure law, in relation to requiring financial reports for real property acquired by the state, including any agencies and authorities, through eminent domain

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. The eminent domain procedure law is amended by adding a new section 306 to read as follows:

§ 306. Financial impact reports. Notwithstanding any other provision of law to the contrary, any contract entered into by a state agency, state authority or a local development corporation under which such local development corporation is engaged in providing or administering economic development benefits on behalf of the state and expending state capital appropriations in connection with any project or action that invokes the power of eminent domain pursuant to this chapter on the basis of economic development, as determined by judicial review, shall be accompanied by a financial impact report. Such report shall include, but not be limited to (i) an analysis of the estimated costs and benefits of the proposed project or action; (ii) the estimated amount of retained or additional tax revenue estimated to be derived from the project for the next three succeeding years; (iii) the amount of assistance received by the local development corporation in the form of a loan, grant, or tax benefit since the beginning of the project period; and (iv) the present value of the future assistance estimated to be given for the duration of the project period. Where such report is prepared by a local development corporation, the state agency or state authority, in consultation with such other state agencies as it deems appropriate, shall review such report and make recommendations, if necessary.

§ 2. This act shall take effect immediately.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD07483-01-9

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Sponsor's memo

Title of bill

An act to amend the eminent domain procedure law, in relation to requir- ing financial reports for real property acquired by the state, including any agencies and authorities, through eminent domain

Purpose

To provide that local development corporations provide an estimated cost benefit analysis of proposed projects, the additional tax revenue antic- ipated from the project and assistance to be provided.

Summary of provisions

Section 1 amends eminent domain procedure law by adding a new section 305 to require that local development corporations include a financial impact report when invoking power of eminent domain. This section requires that the report include: (i) an analysis of estimated costs and benefits; (ii) estimated retained or additional tax revenue for the next three years; iii) amount of assistance being provided from the local development corporation; and iv) present value of the assistance being provided.

Section 2 sets the effective date.

Justification

The constitution guarantees that "private property" shall not be taken for public use without just compensation." In Kelo v. City of New London, the U.S. Supreme Court allowed for the forcible transfer of property from one private owner to another in support of economic devel- opment.

The eminent domain procedure law has not been updated in response and as a result although it can be said to be a "public use" to support econom- ic development the state procedures do not provide for gathering of information relating to economic development in the process. We must update the laws to ensure that the public has full understanding of the anticipated economic costs and benefits associated with eminent domain for the subject project.

It is imperative that if eminent domains is being used for purposes of economic development we have a full assessment of the costs and benefits of the project that will benefit from the use of economic domain, including tax revenue.

Legislative history

S5185 COMRIE No Same as

Fiscal implications

This bill will add a minimal cost to the process of eminent domain however because it is providing needed information about financial costs and benefits it will allow decision makers to make decision that bring in additional revenues that will offset the added cost to the process.

Effective date

This act shall take effect immediately.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.