What's happening
This bill prohibits public funds, financial incentives, or tax exemptions for projects unless the project occupant is publicly disclosed before approval.
Why it matters
Increases government transparency. By requiring the public disclosure of the project occupant before any public funding or tax breaks are approved, the bill aims to prevent "secret deals" where the ultimate beneficiary is hidden from taxpayers.
Limits corporate anonymity. Companies seeking subsidies or tax exemptions can no longer remain anonymous during the approval process, which could deter speculative or non-local entities from pursuing public incentives without public scrutiny.
Strengthens public oversight and accountability. Residents and local governments will have more information about who is benefiting from public resources, empowering communities to weigh in on whether a given project aligns with local priorities and values.
May affect project negotiations and timelines. Developers or businesses who prefer to stay unnamed for competitive or strategic reasons might delay projects or withdraw if required to disclose their identity before public hearings, potentially altering the flow of economic development proposals.
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Who cares
Headline styles
No Public Money for Secret Projects
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 39
4 Co-sponsors
History
- Referred to local government
- Referred to local government
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.
No Funds for Secret Projects
In Assembly Committee · Local Governments · Sponsor Michaelle C. Solages
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4667
2019-2020 Regular Sessions
IN SENATE
March 20, 2019
Introduced by Sens. SKOUFIS, MAYER -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to amend the general municipal law, in relation to preventing the use of funds, financial incentives, subsidies or tax exemptions for project occupants which are not public
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 862 of the general municipal law is amended by adding a new subdivision 3 to read as follows:
(3) No funds, financial incentives or subsidies of the agency shall be used in respect of any project in which the project occupant as defined in section eighteen hundred one of the public authorities law is not publicly disclosed at the time of the public hearing for the project required by subdivision two of section eight hundred fifty-nine-a of this title.
§ 2. Section 874 of the general municipal law is amended by adding a new subdivision 13 to read as follows:
(13) No tax exemptions shall be granted to any project if the project occupant as defined in section eighteen hundred one of the public authorities law is not publicly disclosed at the time of the public hearing for the project required by subdivision two of section eight hundred fifty-nine-a of this title.
§ 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10791-02-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general municipal law, in relation to preventing the use of funds, financial incentives, subsidies or tax exemptions for project occupants which are not public
Purpose or general idea of bill
This bill would prohibit industrial development agencies (IDAs) from giving financial assistance to projects where the project occupant is kept secret from the public. Taxpayers should know which companies their money is going to support.
Summary of provisions
Section 1: Adds a new subdivision to section 862 of the general munici- pal law stating that IDAs may not give financial incentives or subsidies to a project in which the project occupant is not publicly disclosed at the time of the required public hearing for the project.
Section 2: Adds a new subdivision to section 874 of the general munici- pal law stating that IDAs may not grant tax exemptions to a project in which the project occupant is not publicly disclosed at the time of the required public hearing for the project.
Section 3: Effective date.
Justification
Each year, local industrial development agencies grant millions of dollars of financial assistance in the form of tax incentives, payment in lieu of taxes (PILOT) agreements,. and others, to projects seeking assistance. Sometimes, these incentives are given out without any way for the public to know what company is receiving them. For example, in the Town of Montgomery in Orange County, the local IDA is offering incentives to developers of a 1-million square foot warehouse. Although the developers have indicated they will pass the benefits of the incen- tives to the future occupant of the warehouse, they are refusing to identify which company that will be even though they admit that the occupant is known to them.
New Yorkers have a right to know what companies are getting publicly- funded incentives or sales tax exemptions. This bill would prohibit IDAs from giving incentives or exemptions to a project unless the occupant of the project is publicly known.
Prior legislative history
None.
Fiscal implications
None.
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.