What's happening
This bill redefines and tightens requirements for providing public financial assistance to regionally significant projects, focusing on job creation and community benefits.
Why it matters
Narrows eligibility for financial aid. The bill replaces the broader category of "tourism destination" projects with the more specifically defined "regionally significant projects," making it harder for projects to qualify for public financial assistance unless they meet strict new requirements.
Requires independent cost-benefit analysis. For a project to qualify as "regionally significant," the agency’s board must use an independent third-party review to show that community benefits outweigh costs, increasing transparency and accountability in public investment decisions.
Focuses on job creation and retention. The new definition mandates that projects must help preserve or grow permanent private-sector jobs in New York, ensuring that public funds are directed toward demonstrable economic impact.
Adds local government oversight. Before any financial assistance is provided, the chief executive officer of the city, town, or village where the project is located must confirm the agency’s proposed action, giving local leaders more control over which projects receive public funds.
Albany, before your first meeting.
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Who cares
Headline styles
Protect Key Local Projects
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local government
- Returned to senate
- Died in assembly
- Referred to local governments
- Delivered to assembly
- Passed senateVote 48–14
- Advanced to third reading
- 2nd report cal.
- 1st report cal.573
- 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.
Protect Key Regional Projects
In Assembly Committee · Local Governments · Sponsor Taylor Darling
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4766
2019-2020 Regular Sessions
IN SENATE
March 25, 2019
Introduced by Sen. KAMINSKY -- 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 the preservation of regionally significant projects
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, as amended by section 1 of part J of chapter 59 of the laws of 2013, is amended to read as follows:
§ 862. Restrictions on funds of the agency. (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 plant 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, 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) [(a) Except as provided in paragraph (b) of this subdivision, no] No financial assistance of the agency shall be provided in respect of any project where facilities or property that are primarily used in making retail sales to customers who personally visit such facilities constitute more than one-third of the total project cost. For the purposes of this article, "retail sales" shall mean: (i) sales by a registered vendor under article twenty-eight of the tax law primarily engaged in the retail sale of tangible personal property, as defined in subparagraph (i) of paragraph four of subdivision (b) of section eleven hundred one of the tax law; or (ii) sales of a service to such custom-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10776-01-9
S. 4766 2
ers. Except, however, that [tourism destination] regionally significant projects shall not be prohibited by this subdivision. For the purpose of this paragraph, ["tourism destination"] "regionally significant project" shall mean a location or facility [which is likely to attract a significant number of visitors from outside the economic development region as established by section two hundred thirty of the economic development law, in which the project is located] where: (i) the agency board has determined with the benefit of an independent third-party analysis of costs versus benefits that shows more benefits to the community than costs, that the project is likely to attract a significant number of visitors from outside the economic development region as established by section two hundred thirty of the economic development law, in which the project is located and that undertaking the project will serve the public purposes of this article by preserving permanent, private sector jobs or increasing the overall number of permanent, private sector jobs in the state; and (ii) where the agency board makes such a finding, prior to providing financial assistance to the project by the agency, the chief executive officer of the city, town or village where the project is located shall confirm the proposed action of the agency.
[(b) Notwithstanding the provisions of paragraph (a) of this subdivision, financial assistance may, however, be provided to a project where facilities or property that are primarily used in making retail sales of goods or services to customers who personally visit such facilities to obtain such goods or services constitute more than one-third of the total project cost, where: (i) the predominant purpose of the project would be to make available goods or services which would not, but for the project, be reasonably accessible to the residents of the city, town, or village within which the proposed project would be located because of a lack of reasonably accessible retail trade facilities offering such goods or services; or (ii) the project is located in a highly distressed area.
(c) With respect to projects authorized pursuant to paragraph (b) of this subdivision, no project shall be approved unless the agency shall find after the public hearing required by section eight hundred fiftynine-a of this title that undertaking the project will serve the public purposes of this article by preserving permanent, private sector jobs or increasing the overall number of permanent, private sector jobs in the state. Where the agency makes such a finding, prior to providing financial assistance to the project by the agency, the chief executive officer of the municipality for whose benefit the agency was created shall confirm the proposed action of the agency.]
§ 2. This act shall take effect immediately.
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 the preservation of regionally significant projects
Purpose or general idea of bill
Relates to the preservation of regionally significant projects with respect to agencies drawing on funds for new building projects.
Summary of specific provisions
Section 1 amends the General Municipal Law to remove language relating to tourism destinations and to add and define regionally significant projects. Regionally significant projects are defined as a location or facility (i) where the agency board has determined with the benefit of an independent third-party analysis of costs versus benefits that shows more benefits to the community than costs, that the project is likely to attract a significant number of visitors from outside the economic development region in which the project is located and that undertaking the project will serve the public purposes by preserving permanent, private sector jobs or increasing the overall number of permanent, private sector jobs in the state; and (ii) where the agency board makes a finding, prior to providing financial assistance to the project.
Section 2 sets the effective date.
Justification
Under current law, developers of retail businesses such as car dealer- ships and self-storage facilities are receiving tax breaks through a "tourism loophole" that exists in the statute. The resulting tax bene- fits do not stimulate sufficient local economic growth or net economic benefit to warrant the disbursement of public dollars for such projects. In Nassau County in particular, this loophole in the law is being readi- ly abused by businesses attracting customers from Queens County, and taxpayers are stuck with the bill.
This bill closes the tourism loophole by requiring both the local Chief Executive Officer and the agency board where the project is located to determine that the project is likely to attract a significant number of visitors from outside the economic development region and that the project will preserve or increase permanent, private sector jobs within the state. These additional determinations will keep the economic bene- fits intended through the original legislation while preventing the granting of tax breaks without adequate justification.
Prior legislative history
New bill
Fiscal implications
None to the state
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.