Bill Text: NY A03499 | 2017-2018 | General Assembly | Introduced
Bill Title: Enacts the "just and open business subsidies act (JOBS act) of 2017".
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-03 - referred to corporations, authorities and commissions [A03499 Detail]
Download: New_York-2017-A03499-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 3499 2017-2018 Regular Sessions IN ASSEMBLY January 27, 2017 ___________ Introduced by M. of A. RYAN -- read once and referred to the Committee on Corporations, Authorities and Commissions AN ACT to amend the public authorities law, in relation to enacting the "just and open business subsidies act (JOBS act) of 2017", in relation to the reporting and collection of information, evaluation criteria, subsidy recapture, and restrictions on the funding of public financial assistance for private economic development The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Legislative findings. The legislature finds that the state 2 and local governments of New York play an important role in facilitating 3 private economic development. Public financial assistance for economic 4 development should prioritize performance, encourage job creation for 5 all New Yorkers, and have money back guarantees. Empire State Develop- 6 ment (ESD) manages statewide economic development programs through as 7 many as 202 subsidiaries, each with its own board and staff. In addi- 8 tion, there are approximately 20 state agencies performing economic 9 development functions. At the local level, there are 114 Industrial 10 Development Agencies (IDAs), over 500 local development corporations, 82 11 Empire Zone Boards, 114 Business Improvement Districts, 49 Urban Renewal 12 and Community Development Agencies, and 10 Regional Economic Development 13 Councils, all engaging in economic development activity. These entities, 14 providing discretionary and as of right financial assistance, spend over 15 $7 billion in state and local tax revenue and appropriations. 16 The legislature further finds that this system of economic development 17 is balkanized, opaque, often unaccountable, and has few performance 18 criteria on which to judge success or failure. This legislation is 19 intended to improve these important tools for economic development by 20 streamlining applications and reporting, strengthening accountability 21 mechanisms, and encouraging quality job creation for all New Yorkers. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08169-01-7A. 3499 2 1 The legislature further finds that the International Economic Develop- 2 ment Council (IEDC), the nation's largest professional association of 3 economic development officials, released findings from a survey of its 4 4,500 members in February, 2013, in which 98.6 percent said "incentives 5 should be structured in such a way that the community receives a tangi- 6 ble return on investment (e.g., employment, capital investment)." In 7 addition, "96 percent believe that part or all of the granted incentives 8 should be returned if a company does not meet agreed-upon projections." 9 These findings show that there is significant support, even within the 10 economic development profession, for comprehensive reform. 11 The legislature further finds that the economic recovery from the 12 Great Recession has not reached all parts of New York. Unemployment and 13 poverty are significant problems throughout the state. For example, the 14 most recent census data shows that the Kingston Metropolitan Statistical 15 Area has an unemployment rate of 10.4% and a poverty rate of 14.7%. 16 The Ogdensburg-Massena Micropolitan Statistical Area has an unemploy- 17 ment rate of 10.8% and a poverty rate of 18.1%, Sullivan County has an 18 unemployment rate of 12.2% and a poverty rate of 18.5%. Meanwhile other 19 regions of New York and its neighboring states of Connecticut, Massachu- 20 setts, New Jersey, Pennsylvania and Vermont all have lower poverty and 21 unemployment rates than the aforementioned regions of New York. The 22 average unemployment rate of those six states is 9.4% and the average 23 poverty rate is 12.4%. New York has a significant interest in reducing 24 poverty and unemployment for its residents by ensuring that when public 25 money is used to finance economic development, a portion of the jobs 26 created are offered to residents of regions with high unemployment or 27 poverty. 28 § 2. This act shall be known and may be cited as the "just and open 29 business subsidies act (JOBS act) of 2017". 30 § 3. Section 2 of the public authorities law is amended by adding 31 seven new subdivisions 7, 8, 9, 10, 11, 12 and 13 to read as follows: 32 7. "financial assistance" shall mean: (a) any expenditure of public 33 funds for the purpose of stimulating economic development within the 34 state, including, but not limited to, cash payments or grants, bond 35 financing, tax abatements or exemptions (including, but not limited to, 36 abatements or exemptions from real property, mortgage recording, sales 37 and use taxes, or the difference between any payments in lieu of taxes 38 and the amount of real property or other taxes that would have been due 39 if the property were not exempted from such taxes), tax increment 40 financing, filing fee waivers, energy cost reductions, environmental 41 remediation costs, write-downs in the market value of buildings or land, 42 or the cost of capital improvements related to real property for which 43 the state would not pay absent the development project, and includes 44 both discretionary and as of right assistance, and (b) all successor and 45 subsequent expenditures of public funds for the purpose of stimulating 46 economic development within the state. In determining the value of 47 assistance provided, the full value of all city, state and federal 48 assistance received in connection with the project shall be included. 49 8. "recipient" shall mean any person, individual, proprietorship, 50 partnership, joint venture, corporation, limited liability company, 51 trust, association, organization or other entity that receives financial 52 assistance, or any assignee or successor in interest of real property 53 improved or developed with financial assistance. 54 9. "infrastructure" shall mean any substructure or underlying founda- 55 tion or network used for providing goods and services; especially the 56 basic installations and facilities on which the continuance and growthA. 3499 3 1 of a community, state, etc., depend. Examples include roads, water 2 systems, communications facilities, sewers, sidewalks, cable, wiring, 3 schools, power plants, and transportation and communication systems. 4 10. "covered employer" shall mean: (a) a financial assistance recipi- 5 ent; (b) a tenant, sub-tenant, leaseholder or subleaseholder who occu- 6 pies real property that is improved or developed with financial assist- 7 ance; (c) fee holders or other condominium owners of any portion of real 8 property improved or developed with financial assistance who purchased 9 the property from a prior owner or were assigned the property through 10 foreclosure or other means; or (d) any person or entity that contracts 11 or subcontracts with a financial assistance recipient to perform work 12 for a period of more than thirty days on the premises of the financial 13 assistance recipient or on the premises of real property improved or 14 developed with financial assistance, including but not limited to tempo- 15 rary services or staffing agencies, food service contractors, and other 16 on-site service contractors. 17 11. "worker hours" shall mean the total hours worked exclusive of 18 hours worked by residents of states other than New York, whether the 19 workers in question are employed by the financial assistance recipient 20 or the covered employer. 21 12. "apprentice" shall mean a worker who participates in a federal or 22 state apprenticeship program or, as an apprentice equivalent, partic- 23 ipates in a department of labor approved training program, takes a 24 construction apprenticeship test, and receives benefits and pay not less 25 than those received by an apprentice. 26 13. "apprenticeship program" shall mean an apprenticeship program that 27 has been approved by the department of labor for not less than three 28 years and has graduated at least one apprentice in the last three years 29 and has at least one apprentice currently enrolled in such apprentice- 30 ship training program. In addition, it must be demonstrated that the 31 program has made significant efforts to attract and retain minority 32 apprentices, as determined by affirmative action goals established for 33 such program by the department of labor. 34 § 4. Article 9 of the public authorities law is amended by adding a 35 new title 13 to read as follows: 36 TITLE 13 37 JUST AND OPEN BUSINESS SUBSIDIES ACT (JOBS ACT) 38 Section 2990. Standard applications for financial assistance. 39 2991. Financial assistance agreements. 40 2992. Public review. 41 2993. Subsidy recapture. 42 2994. Unified economic development budget. 43 2995. Restrictions on funds of local and state authorities. 44 2996. Designated board representation. 45 2997. Targeted hire. 46 2998. Payments in lieu of taxes. 47 § 2990. Standard applications for financial assistance. 1. All appli- 48 cations submitted to state authorities, local authorities, or any other 49 state granting body requesting financial assistance shall be submitted 50 through a consolidated funding application. The consolidated funding 51 application shall be developed by the authorities budget office, in 52 collaboration with relevant granting bodies. The consolidated funding 53 application shall contain, at a minimum, all information necessary to 54 fulfill reporting requirements under subparagraph six of paragraph (a) 55 of subdivision one and subparagraph six of paragraph (a) of subdivision 56 two of section twenty-eight hundred of this article, and must be certi-A. 3499 4 1 fied by the project applicant's chief executive officer that the appli- 2 cation is accurate and complete. The application shall include all 3 information needed by the New York state energy research and development 4 authority to calculate the greenhouse gas emissions from proposed 5 projects, including but not limited to amount of electricity usage and 6 type and amount of fuel usage. 7 2. No state authority, local authority, or any other state granting 8 body shall enter into a financial assistance agreement with a recipient 9 prior to receiving and processing a complete consolidated funding appli- 10 cation. 11 3. The state authority, local authority, state granting body and the 12 authorities budget office shall have the right of access to examine all 13 documents, payroll records and other materials deemed necessary by the 14 agency or department to determine the applicant's claims are accurate. 15 § 2991. Financial assistance agreements. The state authority, local 16 authority or state granting body shall enter into a financial assistance 17 agreement with the recipient prior to providing such assistance. Each 18 financial assistance agreement shall contain, at a minimum: 19 1. job creation and/or job retention targets and the maintenance of 20 such job levels five years beyond the end date of the financial assist- 21 ance agreement; 22 2. an approved targeted hiring plan, where applicable; 23 3. apprentice target hiring plan, where applicable; 24 4. investment targets; 25 5. detailed plans for compliance with the state smart growth public 26 infrastructure policy act; 27 6. greenhouse gas emissions and energy use benchmarks; 28 7. all information necessary to fulfill reporting requirements under 29 subparagraph six of paragraph (a) of subdivision one and subparagraph 30 six of paragraph (a) of subdivision two of section twenty-eight hundred 31 of this article; 32 8. subsidy recapture provisions; and 33 9. yearly and overall performance benchmarks. 34 § 2992. Public review. 1. The state authority, local authority, state 35 granting body and the authorities budget office shall have the right of 36 access to the covered employer's project site and to examine all docu- 37 ments, payroll records and other materials deemed necessary by the agen- 38 cy or department to determine the recipient is in compliance with 39 provisions of the financial assistance agreement and this article. The 40 state authorities and local authorities shall cooperate fully with the 41 authorities budget office in carrying out its duties. 42 2. The state authority, local authority, or state granting body shall 43 file a copy of each recipient's application, the financial assistance 44 agreement and the cost benefit analysis on its website, with the govern- 45 ing body of the municipality and with the authorities budget office 46 within five days of the execution of the agreement. 47 3. Notwithstanding any other provision of law to the contrary, a state 48 authority, local authority or state granting body in an area with one 49 million persons or more shall not provide discretionary financial 50 assistance exceeding a total of one million dollars in value without the 51 approval of the affected taxing jurisdictions in which the project will 52 occur. In all other areas, a state authority, local authority or state 53 granting body shall not provide discretionary financial assistance 54 exceeding one hundred thousand dollars in value without the approval of 55 the affected taxing jurisdictions in which the project will occur.A. 3499 5 1 Approval of the affected taxing jurisdiction shall consist of a majority 2 vote by the relevant decision making body of that jurisdiction. 3 4. Prior to approving any discretionary economic development assist- 4 ance agreement over twenty-five thousand dollars, a state authority, 5 local authority or state granting body shall: (a) hold a public hearing 6 on the provision of financial assistance; and (b) provide notice to the 7 public thirty calendar days prior to the public hearing. At the time of 8 notice, the state authority, local authority or state granting body 9 shall provide the application, the proposed economic development assist- 10 ance agreement, and any other materials relevant to the decision, such 11 as the cost benefit analysis, to the public. The documents shall be 12 available electronically and the documents shall be available in print 13 upon request. The public hearing shall provide the public reasonable 14 opportunity to comment on the proposed financial assistance agreement. 15 The hearing shall take place no less than seven calendar days before the 16 final decision. The state authority, local authority or state granting 17 body must respond to public comments submitted orally or in writing with 18 official, written replies before such time as the decision is made. All 19 public hearings shall be recorded verbatim and transcripts available on 20 line and transcripts available in print upon request. 21 5. Prior to approving any as of right financial assistance agreement 22 over twenty-five thousand dollars, a state authority, local authority or 23 state granting body shall provide notice to the public thirty calendar 24 days prior to the approval of financial assistance. At the time of 25 notice, the state authority, local authority or state granting body 26 shall provide the application, the proposed financial assistance agree- 27 ment, and any other materials relevant to the decision, such as the cost 28 benefit analysis, to the public. The documents shall be available elec- 29 tronically and the documents shall be available in print upon request. 30 § 2993. Subsidy recapture. 1. All financial assistance agreements 31 shall contain: (a) a specific schedule for subsidy recapture; (b) the 32 measurable yearly benchmarks that a recipient must meet in order to 33 avoid recapture; and (c) provisions for recalibration or rescission of 34 benefits. 35 2. Recapture provisions, at a minimum, shall be based upon each 36 required component of the financial assistance agreement, as identified 37 in section twenty-nine hundred ninety-one of this title. 38 3. If the recipient fails to fulfill any obligation under the finan- 39 cial assistance agreement, or is found to have committed a violation of 40 any state or local law, rule or regulation relating to environmental 41 protection, taxation, financial assistance, protection of workers, or 42 minority or women-owned businesses by final judgment of a court or 43 administrative tribunal, the state authority or local authority shall 44 immediately suspend all financial assistance to the recipient and the 45 applicable recapture provisions set forth in subdivision one of this 46 section shall take effect. (a) The state authority or local authority 47 shall promptly issue a preliminary notice of default to the recipient 48 and provide an opportunity to cure. The recipient can cure the default 49 either by providing evidence documenting that the recipient is not in 50 default, or by meeting the obligations under the financial assistance 51 agreement within one month of notification of default. (b) If the recip- 52 ient of financial assistance fails to cure the default within twenty 53 business days of the issuance of notice, the state authority or local 54 authority shall promptly issue a final notice of default to the recipi- 55 ent who shall remit repayment based on the applicable recapture sched- 56 ule. (c) The recipient shall repay such assistance to the state authori-A. 3499 6 1 ty, local authority, or state granting body at a rate of interest equal 2 to the prime rate, plus one percent as of the date of the notice. The 3 amount of repayment may be prorated according to any partial fulfillment 4 of the recipient's obligations under the agreement, as identified in the 5 subsidy recapture schedule. The local authority, state authority or 6 state granting body shall remit the recaptured subsidies to the relevant 7 local taxing jurisdiction. (d) If a recipient is required to repay 8 financial assistance under this subdivision, the recipient and any 9 subsidiary, parent or successor of the recipient shall be prohibited 10 from entering into a financial assistance agreement with any other state 11 or local authority or instrumentality of this state until the state 12 authority or local authority has received full repayment of the amount 13 due. (e) Whenever the attorney general has good reason to believe that 14 the recipient's failure to fulfill the financial assistance agreement 15 involves the state's interest, or that the recipient has committed a 16 substantial violation of the laws of this state, he or she may commence 17 an action to recover the financial assistance and for such other relief 18 as provided by law. 19 4. The authorities budget office shall annually compile a report on 20 the outcomes and effectiveness of recapture provisions by program, 21 including, but not limited to: (a) the total number of companies that 22 receive financial assistance as defined in this article; (b) the total 23 number of recipients in violation of development agreements; (c) the 24 total number of completed recapture efforts; (d) the total number of 25 recapture efforts initiated; and (e) the total number of waivers grant- 26 ed. Such report shall be disclosed consistent with the provisions of 27 section twenty-eight hundred of this article. 28 5. The state authority, local authority or state granting body may 29 elect to waive enforcement of any contractual provision arising out of 30 the financial assistance agreement, based on the finding that the waiver 31 is necessary to avert imminent and demonstrable hardship to the recipi- 32 ent, only after approval by the affected taxing jurisdictions. If the 33 waiver is granted, the recipient must agree to a contractual modifica- 34 tion to the financial assistance agreement that includes recapture 35 provisions. 36 § 2994. Unified economic development budget. 1. For each state fiscal 37 year ending on or after June thirtieth, two thousand seventeen, the 38 department of taxation and finance shall submit an annual unified 39 economic development budget to the governor, senate and assembly. The 40 unified economic development budget shall be due within three months 41 after the end of the fiscal year, and shall present all types of project 42 specific financial assistance granted during the prior fiscal year, 43 including, at a minimum: 44 (a) The amount of uncollected state tax revenues resulting from every 45 corporate tax credit, abatement, exemption and reduction provided by the 46 state or a local governmental unit including but not limited to gross 47 receipts, income, sales, use, raw materials, excise, property, utility, 48 and inventory taxes; 49 (b) The amount of uncollected state tax revenues resulting from every 50 tax exempt bond or loan provided by the state or a local governmental 51 unit; 52 (c) The amount of financial assistance provided from every grant by 53 the state or a local governmental unit; 54 (d) Estimates prepared by the commissioner of taxation and finance, in 55 conjunction with the director of the budget, of the cost of such finan-A. 3499 7 1 cial assistance for the: (i) current taxable or calendar year; and (ii) 2 the five preceding years; 3 (e) The name of each corporate taxpayer which claimed any financial 4 assistance under paragraph (a), (b) or (c) of this subdivision of any 5 value equal to or greater than five thousand dollars, together with the 6 dollar amount received by each such corporation; 7 (f) Any tax credit, abatement, exemption or reduction received by a 8 corporation of less than five thousand dollars each shall not be item- 9 ized. The aggregate dollar amount of such expenditures and the number of 10 companies so aggregated for each tax expenditure shall be included; 11 (g) All state appropriated expenditures for economic development, 12 including expenditures for infrastructure improvements related to real 13 property for which the state would not pay absent the development 14 project, and line-item budgets for every state-funded entity concerned 15 with economic development; 16 (h) The provisions of law authorizing such tax expenditures, their 17 effective dates, the program, if any exists, through which the financial 18 assistance is granted, the agencies or entities that manage the program 19 and/or authorize the financial assistance, and, if applicable, the dates 20 on which such financial assistance expires or is reduced; 21 (i) Any recommendations of the governor regarding continuing, modify- 22 ing, or repealing such financial assistance, and such other information 23 regarding development expenditures as the executive may feel useful and 24 appropriate; 25 (j) If the governor's budget includes proposals for the expiration, 26 modification, or repeal of such financial assistance or for the addition 27 of financial assistance in or to such articles or such law, such report 28 shall also contain, to the extent reliable data are available, an analy- 29 sis of the number and types of persons and entities benefiting or 30 expected to benefit from such financial assistance, an estimate of the 31 costs of such financial assistance for the coming fiscal year, and an 32 explanation of the reasons for the proposals; 33 (k) General cautionary and advisory notes concerning limitations of 34 data, estimation procedures, sampling errors and imputed values, promi- 35 nently displayed. 36 § 2995. Restrictions on funds of local and state authorities. 1. No 37 financial assistance of the state authority or local authority shall be 38 used in respect of any project if the completion thereof would result in 39 the removal of all or any part of a facility or plant of the project 40 occupant from one area of the state to another area of the state or in 41 the abandonment of all or any part of one or more plants or facilities 42 of the project occupant located within the state, or in the loss of 43 employment in the labor market area from which the relocation occurs, 44 provided, however, that neither restriction shall apply if (a) the prior 45 consent of the affected taxing jurisdictions from which all or any part 46 of a facility or plant of the project occupant will be removed or aban- 47 doned is provided in writing and (b) the authority shall determine on 48 the basis of clear and convincing evidence that the project is reason- 49 ably necessary to discourage the project occupant from removing such 50 other plant or facility to a location outside the state or is reasonably 51 necessary to preserve the competitive position of the project occupant 52 in its respective industry. 53 2. Upon a complaint by a local or state elected official that finan- 54 cial assistance of an authority has resulted in the abandonment or 55 removal by a project occupant of all or any part of one or more plants 56 or facilities in such municipality, the authorities budget office or aA. 3499 8 1 designee shall investigate such allegation and may schedule a public 2 hearing on the matter. If the authorities budget office determines that 3 the complaint is valid, the authority that provided the financial 4 assistance shall recapture the assistance from the project applicant, 5 and pay to the municipality an amount equal to the portion of tax or 6 taxes that the project applicant saved or avoided due to its relocation 7 and the authority is suspended from negotiating any financial assistance 8 agreements for one year. 9 3. No financial assistance of the state or local authority shall be 10 used to assist in the relocation of all or any part of a plant, facility 11 or operation from one location in the state with existing infrastructure 12 to another location in the state with no existing infrastructure. 13 § 2996. Designated board representation. Except as otherwise provided 14 by special act of the legislature, a state authority or local authority 15 shall consist of not less than three members who shall be appointed by 16 the governing body of each municipality and who shall serve for a term 17 of four years. Each board shall be representative of local businesses, 18 organized labor, community organizations, environmental organizations, 19 workforce development organizations, financial institutions, local 20 educational institutions and residents of the area. A member shall 21 continue to hold office until his or her successor is appointed and has 22 qualified. The governing body of each municipality shall designate the 23 first chairperson and file with the secretary of state a certificate of 24 appointment or reappointment of any member. Such members shall receive 25 no compensation for their services but shall be entitled to the neces- 26 sary expenses, including traveling expenses, incurred in the discharge 27 of their duties. Members must not be or have, within the past five 28 years, been: 29 1. an employee or an owner of a firm that is a paid advisor or 30 consultant of the authority, including a present or former independent 31 auditor of the authority; 32 2. employed by a significant supplier of the authority; 33 3. employed by and had a five percent or greater ownership interest in 34 a supplier where sales to the authority represent more than one percent 35 of the sales of the supplier or more than one percent of the purchases 36 of the authority; and 37 4. a lobbyist registered under a state or local law covering any 38 jurisdiction served in whole or in part by the authority. 39 § 2997. Targeted hire. 1. Notwithstanding any other provision of law 40 to the contrary, and except as is otherwise provided by collective 41 bargaining contracts or agreements, recipients of more than one hundred 42 thousand dollars in cumulative financial assistance by local and state 43 authorities, as well as covered employers, shall ensure that (a) fifty 44 percent of construction and non-construction worker hours performed on 45 the project benefiting from the financial assistance are performed by 46 residents of a New York metropolitan statistical area (MSA), micropoli- 47 tan statistical area (MiSA), or county that is not designated as an MSA 48 or MiSA, as defined by the United States bureau of labor statistics, 49 that contains the project or any part thereof, and in which the most 50 recent census determines that the poverty or unemployment rate is higher 51 than the average (aggregated) poverty or unemployment rate of the 52 regional labor market states of New York, Connecticut, Massachusetts, 53 New Jersey, Pennsylvania and Vermont; and (b) twenty-five percent of 54 construction worker hours performed on the project benefiting from the 55 financial assistance are performed by apprentices.A. 3499 9 1 2. If the percentage targeted hiring requirements of subdivision one 2 of this section have not been satisfied for a project, the recipient 3 nonetheless may be deemed to be in compliance if it demonstrates that it 4 and each covered employer have either (a) satisfied the targeted hiring 5 requirements with regard to the project work that each has performed or 6 (b) satisfactorily demonstrated the following: (i) adherence to proce- 7 dures contained in an approved targeted hiring plan; (ii) as appropri- 8 ate, made requests to unions, using proper forms, of sufficient numbers 9 of targeted workers and apprentices to meet the targeted hiring percent- 10 ages set forth in subdivision one of this section; (iii) as appropriate, 11 documented contact with the appropriate agency representative in each 12 instance when the relevant union did not refer qualified targeted work- 13 ers within the forty-eight hours following the contractor's request; 14 (iv) fair consideration by the recipient and covered employers of any 15 targeted worker received from any referral source; (v) accurate records 16 documenting the recipient's and covered employers' compliance efforts 17 that include, but are not limited to, the following: (1) a listing by 18 name and address of all local recruitment sources contacted by the 19 recipient and covered employers; (2) the number of targeted worker hires 20 made as a result of the contact; (3) the identity and address of the 21 worker or workers hired pursuant to the contact; (4) documentation when 22 a targeted worker was not hired (including the reason for non-hire) 23 and/or premature termination; (5) for construction projects only, recip- 24 ients shall also include the date of the local recruitment contact and 25 the identity of the person contacted, the trade and classification and 26 number of hire referrals requested. 27 3. Financial assistance recipients shall guarantee that all covered 28 employers operating on their premises or on the premises of real proper- 29 ty improved or developed with financial assistance comply with the 30 requirements of this section. 31 4. Nothing herein shall be construed to require any recipient or 32 covered employer to offer employment to any particular individual, or 33 otherwise affect the authority of any employer with regard to personnel 34 matters. 35 5. A complaint for a violation of this section may be filed by an 36 affected employee, job applicant, or by an organization representing 37 such employee, pursuant to the procedures under articles eight and nine 38 of the labor law. 39 6. The relevant fiscal officer, as defined in subdivision eight of 40 section two hundred thirty of the labor law, shall have the authority to 41 ensure compliance with the provisions of this section. Monitoring 42 activities may include requests to produce documentation including the 43 provision of certified payrolls, site visits, interviews, review of 44 required reports, and any other monitoring activities the fiscal officer 45 reasonably finds necessary to assess compliance with this section. 46 Covered employers shall cooperate fully and promptly with any inquiries 47 the fiscal officer deems necessary in order to monitor compliance with 48 this section. The fiscal officer may review a covered employer's 49 compliance with this section either on its own initiative or after 50 receiving a complaint or inquiry from a member of the public or city or 51 state staff. 52 7. State authorities, local authorities, or any other state granting 53 bodies shall prepare quarterly targeted hire reports listing each subsi- 54 dy recipient, whether it is subject to subdivision one of this section, 55 and whether it has met the percent targeted hire requirements identified 56 in subdivision one of this section. The report shall identify theA. 3499 10 1 percentage of workers in each project that reside in an MSA, MiSA or 2 county not designated as an MSA or MiSA and containing the project, as 3 well as the percentage of workers that are New York residents. These 4 reports shall be available to the public. Data from the quarterly 5 reports may be used to compile the annual report, identified in section 6 twenty-eight hundred of this article. 7 8. The fiscal officer shall promptly notify the state or local public 8 authority after a final judgment determining that the employer has 9 violated this section. Upon receipt of such notice, the authority shall 10 immediately suspend financial assistance to the recipient. The recipient 11 shall repay such assistance to the authority pursuant to section twen- 12 ty-nine hundred ninety-three of this title. 13 9. Nothing in this section shall be construed as prohibiting or 14 conflicting with any law, obligation, or collective bargaining agreement 15 that requires greater levels of targeted hiring for recipients or 16 covered employers. 17 10. Any person aggrieved by a violation of this section, any entity a 18 member of which is aggrieved by a violation of this section, or any 19 other person or entity acting on behalf of the public as provided for 20 under applicable state law, may bring a civil action in a court of 21 competent jurisdiction against the recipient or covered employer violat- 22 ing this section and, upon prevailing, shall be awarded reasonable 23 attorneys' fees and costs and shall be entitled to such legal or equita- 24 ble relief as may be appropriate to remedy the violation. Provided, 25 however, that any person or entity enforcing this title on behalf of the 26 public as provided for under applicable state law shall, upon prevail- 27 ing, be entitled only to equitable, injunctive or restitutionary relief 28 to employees or job applicants, and reasonable attorneys' fees and 29 costs. 30 § 2998. Payments in lieu of taxes. No payment in lieu of taxes agree- 31 ment shall be for a period of time longer than five years. The agreement 32 shall be renewable for one additional period of five years, so long as 33 the recipient has met the conditions of the financial assistance agree- 34 ment and after a vote by the relevant board. 35 § 5. Paragraph (a) of subdivision 1 and paragraph (a) of subdivision 2 36 of section 2800 of the public authorities law, as amended by chapter 506 37 of the laws of 2009, are amended to read as follows: 38 (a) For the purpose of furnishing the state with systematic informa- 39 tion regarding the status and the activities of public authorities, 40 every state authority continued or created by this chapter or any other 41 chapter of the laws of the state of New York shall submit to the gover- 42 nor, the chairman and ranking minority member of the senate finance 43 committee, the chairman and ranking minority member of the assembly ways 44 and means committee, the state comptroller, and the authorities budget 45 office, within ninety days after the end of its fiscal year, a complete 46 and detailed report or reports setting forth: (1) its operations and 47 accomplishments; (2) its financial reports, including (i) audited finan- 48 cials in accordance with all applicable regulations and following gener- 49 ally accepted accounting principles as defined in subdivision ten of 50 section two of the state finance law, (ii) grant and subsidy programs, 51 (iii) operating and financial risks, (iv) current ratings, if any, of 52 its bonds issued by recognized municipal bond rating agencies and notice 53 of changes in such ratings, and (v) long-term liabilities, including 54 leases and employee benefit plans; (3) its mission statement and meas- 55 urements including its most recent measurement report; (4) a schedule of 56 its bonds and notes outstanding at the end of its fiscal year, togetherA. 3499 11 1 with a statement of the amounts redeemed and incurred during such fiscal 2 year as part of a schedule of debt issuance that includes the date of 3 issuance, term, amount, interest rate and means of repayment. Addi- 4 tionally, the debt schedule shall also include all refinancings, calls, 5 refundings, defeasements and interest rate exchange or other such agree- 6 ments, and for any debt issued during the reporting year, the schedule 7 shall also include a detailed list of costs of issuance for such debt; 8 (5) a compensation schedule, in addition to the report described in 9 section twenty-eight hundred six of this title, that shall include, by 10 position, title and name of the person holding such position or title, 11 the salary, compensation, allowance and/or benefits provided to any 12 officer, director or employee in a decision making or managerial posi- 13 tion of such authority whose salary is in excess of one hundred thousand 14 dollars; (5-a) biographical information, not including confidential 15 personal information, for all directors and officers and employees for 16 whom salary reporting is required under subparagraph five of this para- 17 graph; (6) the projects undertaken by such authority during the past 18 year, made available to the public in an electronic non-proprietary and 19 downloadable database, that shall include but not be limited to: 20 (i) Project description: (a) name and address of project applicant, 21 including names of principal officers, any parent or subsidiary corpo- 22 rations and major shareholders; (b) name of the site consultants, 23 project architect, engineer and contractors; (c) project description, 24 including address, block and lot, property and building size, proposed 25 start and completion dates for the financial transaction, project goals, 26 and description of project tenants; (d) electronic link to the final 27 application, the financial assistance agreement, the cost benefit analy- 28 sis, environmental impact assessment and/or environmental impact state- 29 ment, and where applicable the quarterly targeted hire report; (e) 30 whether project is located in an area of high economic distress or on a 31 brownfield opportunity area; (f) the amount, type and date of capital 32 investment to be provided by the recipient, originally committed and to 33 date; (g) amount, type, and date of public infrastructure investments 34 made by recipient, originally committed and to date; (h) amount and type 35 of affordable housing to be built, if any, originally committed and to 36 date; (i) NAICS code for project; (j) the public purpose of the project; 37 (k) amount and type of point source and non-point source pollution 38 resulting from the project, if any, annually and to date; (l) amount and 39 type of energy use at project location, originally benchmarked and to 40 date; and (m) amount of greenhouse gas emissions at project location 41 originally benchmarked and to date; 42 (ii) Financial assistance: (a) categorized description of the total 43 amount and type of financial assistance provided by the authority over 44 the life of the agreement, amount committed to date, and amount commit- 45 ted during the prior fiscal year, including the value of any property 46 sold or leased at less than fair market value; (b) description of the 47 net amount and type of financial assistance provided by the authority 48 over the life of the agreement, amount committed to date, and amount 49 committed during the prior fiscal year, and where applicable, the 50 amount, type, and date of PILOT payments by tax jurisdiction, original 51 and to date; (c) attachment of the yearly schedule of exemptions and 52 other benefits committed by the authority for each year of the life of 53 the deal; (d) amount of public assistance, total, by program, and by 54 type of financial assistance, committed to the project by all other 55 federal, state, county, and local programs as of the date of the 56 execution of the agreement, as well as updated for the prior fiscalA. 3499 12 1 year; and (e) amount and type of infrastructure investments incurred by 2 federal, state, county, and local governments on behalf of the project. 3 (iii) Project criteria: (a) number and types of full-time and part- 4 time jobs existing at the project on the date the original agreement was 5 executed, and median annual wage and benefit levels by job classifica- 6 tion; (b) number and types of full-time and part-time jobs originally 7 committed, as per financial assistance agreement, and median annual wage 8 and benefit levels by job classification; (c) number of full time and 9 part time jobs retained to date; (d) number of full time and part time 10 temporary construction jobs created by applicant and by project tenants 11 to date; (e) number of full time and part time non-construction jobs 12 created by applicant and by project tenants to date; (f) median annual 13 wage and benefit levels by job classification of full time and part 14 time, construction and non-construction jobs created and retained to 15 date; (g) actual date of hire for construction and non-construction 16 jobs; (h)(1) number and percent of total jobs created to date of New 17 York residents, separated by construction and non-construction employ- 18 ees; (2) number and percent of total jobs created to date of local resi- 19 dents, defined as those residing within the metropolitan statistical 20 area (MSA), micropolitan statistical area (MiSA), or county not within 21 an MSA or MiSA, in which the project occurs, separated by construction 22 and non-construction employees; (i) recipient use of union construction 23 apprenticeship programs or any other local workforce development 24 program, original and to date; (j) whether or not the project complied 25 with each aspect of the state smart growth public infrastructure policy 26 act; (k) the benchmarks for the current reporting year; (l) whether or 27 not the project has met each benchmark and if not, the financial assist- 28 ance amount the authority has recaptured during the current year and to 29 date; and (m) whether the project has a subsidy recapture provision. 30 (iv) Other: (a) whether recipient, its officers, principals, parent 31 company, subsidiaries or major shareholders have (1) violated the 32 prevailing wage law under article eight of the labor law or the federal 33 Davis-Bacon act; (2) violated state or federal laws relating to unem- 34 ployment compensation, workers' compensation, occupational health and 35 safety, employee misclassification, employment disability, employment 36 discrimination, or other labor laws; (3) violated state or federal envi- 37 ronmental protection laws; (4) failed to file federal, state or local 38 tax returns, any tax liabilities, judgments or liens, and violations of 39 agreements or laws under which a tax credit, tax exemption, loan or 40 grant was awarded by any federal, state or local entity; and (5) disclo- 41 sure of any investigations started or pending; (b) a description of such 42 violations; and (c) a statement as to whether the use of the financial 43 assistance during the previous fiscal year has reduced employment at any 44 other site controlled by the recipient corporation or its corporate 45 parent, within or without the state as a result of automation, merger, 46 acquisition, corporate restructuring or other business activity. 47 (v) Prior projects. Where information requested under this subdivision 48 is not required to be collected because the project was approved prior 49 to the effective date of title thirteen of this article, it shall be 50 noted accordingly in the report. 51 (vi) Duration. The database shall be for the period commencing on the 52 date that the financial assistance agreement and any other documents 53 applicable to such project have been executed through the final year 54 that such entity receives assistance for such project. At such point, 55 data on recipients of financial assistance shall be archived and avail- 56 able to the public; (7) a listing and description available to theA. 3499 13 1 public in a non-proprietary electronic database, in addition to the 2 report required by paragraph a of subdivision three of section twenty- 3 eight hundred ninety-six of this article of all real property of such 4 authority having an estimated fair market value in excess of fifteen 5 thousand dollars that the authority acquires or disposes of through sale 6 or lease during such period. The report shall contain the price received 7 or paid by the authority, the fair market value at the time of sale or 8 lease, and the name of the purchaser or seller for all such property 9 sold or bought by the authority during such period; (8) such authority's 10 code of ethics; (9) an assessment of the effectiveness of its internal 11 control structure and procedures; (10) a copy of the legislation that 12 forms the statutory basis of the authority; (11) a description of the 13 authority and its board structure, including (i) names of committees and 14 committee members, (ii) lists of board meetings and attendance, (iii) 15 descriptions of major authority units, subsidiaries, [and] (iv) number 16 of employees, and (v) organizational chart; (12) its charter, if any, 17 and by-laws; (13) a listing of material changes in operations and 18 programs during the reporting year; (14) at a minimum a four-year finan- 19 cial plan, including (i) a current and projected capital budget, and 20 (ii) an operating budget report, including an actual versus estimated 21 budget, with an analysis and measurement of financial and operating 22 performance; (15) its board performance evaluations, including attend- 23 ance and voting records by each board member; [provided, however, that24such evaluations shall not be subject to disclosure under article six of25the public officers law;] (16) a description of the total amounts of 26 assets, services or both assets and services bought or sold without 27 competitive bidding, including (i) the nature of those assets and 28 services, (ii) the names of the counterparties, and (iii) where the 29 contract price for assets purchased exceeds fair market value, or where 30 the contract price for assets sold is less than fair market value, a 31 detailed explanation of the justification for making the purchase or 32 sale without competitive bidding, and a certification by the chief exec- 33 utive officer and chief financial officer of the public authority that 34 they have reviewed the terms of such purchase or sale and determined 35 that it complies with applicable law and procurement guidelines; and 36 (17) a description of any material pending litigation in which the 37 authority is involved as a party during the reporting year, except that 38 no hospital need disclose information about pending malpractice claims 39 beyond the existence of such claims. 40 (a) Every local authority, continued or created by this chapter or any 41 other chapter of the laws of the state of New York shall submit to the 42 chief executive officer, the chief fiscal officer, the chairperson of 43 the legislative body of the local government or local governments and 44 the authorities budget office, within ninety days after the end of its 45 fiscal year, a complete and detailed report or reports setting forth: 46 (1) its operations and accomplishments; (2) its financial reports, 47 including (i) audited financials in accordance with all applicable regu- 48 lations and following generally accepted accounting principles as 49 defined in subdivision ten of section two of the state finance law, (ii) 50 grants and subsidy programs, (iii) operating and financial risks, (iv) 51 current ratings if any, of its bonds issued by recognized municipal bond 52 rating agencies and notice of changes in such ratings, and (v) long-term 53 liabilities, including leases and employee benefit plans; (3) its 54 mission statement and measurements including its most recent measurement 55 report; (4) a schedule of its bonds and notes outstanding at the end of 56 its fiscal year, together with a statement of the amounts redeemed andA. 3499 14 1 incurred during such fiscal year as part of a schedule of debt issuance 2 that includes the date of issuance, term, amount, interest rate and 3 means of repayment. Additionally, the debt schedule shall also include 4 all refinancings, calls, refundings, defeasements and interest rate 5 exchange or other such agreements, and for any debt issued during the 6 reporting year, the schedule shall also include a detailed list of costs 7 of issuance for such debt; (5) a compensation schedule in addition to 8 the report described in section twenty-eight hundred six of this title 9 that shall include, by position, title and name of the person holding 10 such position or title, the salary, compensation, allowance and/or bene- 11 fits provided to any officer, director or employee in a decision making 12 or managerial position of such authority whose salary is in excess of 13 one hundred thousand dollars; (5-a) biographical information, not 14 including confidential personal information, for all directors and offi- 15 cers and employees for whom salary reporting is required under subpara- 16 graph five of this paragraph; (6) the projects undertaken by such 17 authority during the past year, made available to the public in an elec- 18 tronic non-proprietary and downloadable database, that shall include but 19 not be limited to: (i) Project description: (a) name and address of 20 project applicant, including names of principal officers, any parent or 21 subsidiary corporations and major shareholders; (b) name of the site 22 consultants, project architect, engineer and contractors; (c) project 23 description, including address, block and lot, property and building 24 size, proposed start and completion dates for the financial transaction, 25 project goals, and description of project tenants; (d) electronic link 26 to the final application, the financial assistance agreement, the cost 27 benefit analysis, environmental impact assessment and/or environmental 28 impact statement, and where applicable the quarterly targeted hire 29 report; (e) whether project is located in an area of high economic 30 distress or on a brownfield opportunity area; (f) the amount, type and 31 date of capital investment to be provided by the recipient, originally 32 committed and to date; (g) amount, type, and date of public infrastruc- 33 ture investments made by recipient, originally committed and to date; 34 (h) amount and type of affordable housing to be built, if any, 35 originally committed and to date; (i) NAICS code for project; (j) the 36 public purpose of the project; (k) amount and type of point source and 37 non-point source pollution resulting from the project, if any, annually 38 and to date; (l) amount and type of energy use at project location, 39 originally benchmarked and to date; and (m) amount of greenhouse gas 40 emissions at project location originally benchmarked and to date. 41 (ii) Financial assistance: (a) categorized description of the total 42 amount and type of financial assistance provided by the authority over 43 the life of the agreement, amount committed to date, and amount commit- 44 ted during the prior fiscal year, including the value of any property 45 sold or leased at less than fair market value; (b) description of the 46 net amount and type of financial assistance provided by the authority 47 over the life of the agreement, amount committed to date, and amount 48 committed during the prior fiscal year, and where applicable, the 49 amount, type, and date of PILOT payments by tax jurisdiction, original 50 and to date; (c) attachment of the yearly schedule of exemptions and 51 other benefits committed by the authority for each year of the life of 52 the deal; (d) amount of public assistance, total, by program, and by 53 type of financial assistance, committed to the project by all other 54 federal, state, county, and local programs as of the date of the 55 execution of the agreement, as well as updated for the prior fiscalA. 3499 15 1 year; and (e) amount and type of infrastructure investments incurred by 2 federal, state, county, and local governments on behalf of project. 3 (iii) Project criteria, where applicable: (a) number and types of 4 full-time and part-time jobs existing at the project on the date the 5 original agreement was executed, and median annual wage and benefit 6 levels by job classification; (b) number and types of full-time and 7 part-time jobs originally committed, as per financial assistance agree- 8 ment, and median annual wage and benefit levels by job classification; 9 (c) number of full time and part time jobs retained to date; (d) number 10 of full time and part time construction jobs created by applicant and by 11 project tenants to date; (e) number of full time and part time non-con- 12 struction jobs created by applicant and by project tenants to date; (f) 13 median annual wage and benefit levels by job classification of full time 14 and part time, construction and non-construction jobs created and 15 retained to date; (g) actual date of hire for construction and non-con- 16 struction jobs; (h) number and percent of total jobs created to date of 17 New York residents, separated by construction and non-construction 18 employees; (i) number and percent of total jobs created to date of local 19 residents, defined as those residing within the metropolitan statistical 20 area (MSA), micropolitan statistical area (MiSA), or county not within 21 an MSA or MiSA, in which the project occurs, separated by construction 22 and non-construction employees; (j) recipient use of union construction 23 apprenticeship programs or any other local workforce development 24 program, original and to date; (k) whether or not the project complied 25 with each aspect of the State Smart Growth Public Infrastructure Policy 26 Act; (l) the benchmarks for the current reporting year; (m) whether or 27 not the project has met each benchmark and if not, the financial assist- 28 ance amount the authority has recaptured during the current year and to 29 date; (n) whether the project has a subsidy recapture provision. 30 (iv) Other: (a) whether recipient, its officers, principals, parent 31 company, subsidiaries or major shareholders have (1) violated the 32 prevailing wage law under article eight of the labor law or the federal 33 Davis-Bacon act; (2) violated state or federal laws relating to unem- 34 ployment compensation, workers' compensation, occupational health and 35 safety, employee misclassification, employment disability, employment 36 discrimination, or other labor laws; (3) violated state or federal envi- 37 ronmental protection laws; (4) failed to file federal, state or local 38 tax returns, any tax liabilities, judgments or liens, and violations of 39 agreements or laws under which a tax credit, tax exemption, loan or 40 grant was awarded by any federal, state or local entity; and (5) disclo- 41 sure of any investigations started or pending; (b) a description of such 42 violations; and (c) a statement as to whether the use of the financial 43 assistance during the previous fiscal year has reduced employment at any 44 other site controlled by the recipient corporation or its corporate 45 parent, within or without the state as a result of automation, merger, 46 acquisition, corporate restructuring or other business activity. 47 (v) Prior projects. Where information requested under subdivision two 48 of this section is not required to be collected because the project was 49 approved prior to the adoption of this law, it shall be noted according- 50 ly in the report. 51 (vi) The database shall be for the period commencing on the date that 52 the financial assistance agreement and any other documents applicable to 53 such project have been executed through the final year that such entity 54 receives assistance for such project. At such point, data on recipients 55 of financial assistance shall be archived and available to the public; 56 (7) a listing and description available to the public in a non-proprie-A. 3499 16 1 tary electronic database, in addition to the report required by para- 2 graph a of subdivision three of section twenty-eight hundred ninety-six 3 of this article of all real property of such authority having an esti- 4 mated fair market value in excess of fifteen thousand dollars that the 5 authority acquires or disposes of through sale or lease during such 6 period. The report shall contain the price received or paid by the 7 authority, the fair market value at the time of sale or lease, and the 8 name of the purchaser or seller for all such property sold or bought by 9 the authority during such period; (8) such authority's code of ethics; 10 (9) an assessment of the effectiveness of its internal control structure 11 and procedures; (10) a copy of the legislation that forms the statutory 12 basis of the authority; (11) a description of the authority and its 13 board structure, including (i) names of committees and committee 14 members, (ii) lists of board meetings and attendance, (iii) descriptions 15 of major authority units, subsidiaries, (iv) number of employees, and 16 (v) organizational chart; (12) its charter, if any, and by-laws; (13) a 17 listing of material changes in operations and programs during the 18 reporting year; (14) at a minimum a four-year financial plan, including 19 (i) a current and projected capital budget, and (ii) an operating budget 20 report, including an actual versus estimated budget, with an analysis 21 and measurement of financial and operating performance; (15) its board 22 performance evaluations [provided, however, that such evaluations shall23not be subject to disclosure under article six of the public officers24law], including attendance, voting records by each board member, and 25 categorization of each board member according to section twenty-nine 26 hundred ninety-six of this article; (16) a description of the total 27 amounts of assets, services or both assets and services bought or sold 28 without competitive bidding, including (i) the nature of those assets 29 and services, (ii) the names of the counterparties, and (iii) where the 30 contract price for assets purchased exceeds fair market value, or where 31 the contract price for assets sold is less than fair market value, a 32 detailed explanation of the justification for making the purchase or 33 sale without competitive bidding, and a certification by the chief exec- 34 utive officer and chief financial officer of the public authority that 35 they have reviewed the terms of such purchase or sale and determined 36 that it complies with applicable law and procurement guidelines; and 37 (17) a description of any material pending litigation in which the 38 authority is involved as a party during the reporting year, except that 39 no provider of medical services need disclose information about pending 40 malpractice claims beyond the existence of such claims. 41 § 6. Subdivision 1 of section 2800 of the public authorities law is 42 amended by adding a new paragraph (d) to read as follows: 43 (d) Nothing in this section shall be construed as prohibiting or 44 conflicting with any law or obligation that requires higher standards 45 for annual reporting by a state public authority. 46 § 7. Subdivision 2 of section 2800 of the public authorities law is 47 amended by adding two new paragraphs (c) and (d) to read as follows: 48 (c) The authorities budget office shall make accessible to the public, 49 via its official or shared internet web site, documentation pertaining 50 to each authority's mission, current activities, most recent annual 51 financial reports, current year budget and its most recent independent 52 audit report unless such information is covered by subdivision two of 53 section eighty-seven of the public officers law. 54 (d) Nothing in this section shall be construed as prohibiting or 55 conflicting with any law or obligation that requires higher standards 56 for annual reporting by a local public authority.A. 3499 17 1 § 8. This act shall take effect on the ninetieth day after it shall 2 have become a law, provided, however, that effective immediately, the 3 addition, amendment and/or repeal of any rule or regulation necessary 4 for the implementation of this act on its effective date are authorized 5 to be made and completed on or before such date.
