What's happening
This bill prohibits industrial development agencies from offering incentives for businesses to move operations or personnel within New York State.
Why it matters
Targets “poaching” of jobs within New York. By prohibiting incentives that encourage businesses to move facilities or personnel from one area of the state to another, the bill aims to stop localities from competing against each other for existing jobs, which often results in no net gain for New York as a whole.
Expands the prohibition beyond manufacturing. The new language broadens the restriction from just industrial or manufacturing plants to any plant, facility, or personnel, making the rule apply to a much wider range of business types and job categories.
Removes exceptions that favored business interests. The bill eliminates previous loopholes that allowed for incentives if they were “reasonably necessary” to preserve a company’s competitive position, ensuring that incentives can’t be justified for intra-state relocations except to prevent a move out of state.
Seeks to prioritize statewide economic benefit over local gains. By limiting how industrial development agencies can use incentives, the legislation encourages a more coordinated, statewide approach to economic development rather than wasteful competition among local governments.
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Who cares
Headline styles
Stop IDA In-State Relocation Deals
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.
Stop Local Job-Poaching Incentives
In Assembly Committee · Local Governments · Sponsor Sean Ryan
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4674
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 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.
Sponsor's memo
Title of bill
An act to amend the general municipal law, in relation to prohibiting industrial development agencies from incentivizing move- ments within the state
Purpose or general idea of bill
The bill would tighten existing prohibitions on so-called "intra-state piracy" that restrict local industrial development agencies from giving financial assistance to a company to lure it from one part of New York to another.
Summary of provisions
Section 1: Amends subdivision 1 of section 862 of the general municipal law to tighten the existing prohibition on IDAs giving assistance to projects that simply move jobs or facilities from one part of the state to another.
Section 2: Effective Date.
Justification
The purpose of IDAs is to incentivize companies to locate in the county or municipality of the IDA through the offer of financial assistance in the form of tax incentives, payment in lieu of taxes (PILOT) agreements, and other means. To avoid one municipality using incentives to "pirate" a company from another part of New York, IDAs are prohibited from using their funds to incentivize an "industrial or manufacturing plant" moving from one part of New York to another. Unfortunately, the existing stat- ute contains exceptions that are so broad and vague as to render the prohibition virtually meaningless, and intra-state "piracy" occurs with regularity. For example, in February, 2019 the Westchester County IDA granted financial assistance to a business that closed its facility in Yonkers shipped some jobs out of state and moved other jobs to a new facility in Rye Brook, another community in Westchester County.
Simply moving jobs from one part of New York to another creates no net benefit for state residents and should not be encouraged by taxpayer- funded subsidies.
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.