NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8326
SPONSOR: Solages TITLE OF BILL:
An act to amend the general municipal law, in relation to disallowing
county industrial development agencies from offering incentives in muni-
cipalities which have their own industrial development agency
PURPOSE:
To prohibit county industrial development agencies from offering incen-
tives in municipalities which have their own industrial development
agency to prevent companies from "shopping around" for the best finan-
cial benefit possible from industrial development agencies.
SUMMARY:
Section 1: Amends the general municipal law is by adding a new section
863. Section 2: Effective date
JUSTIFICATION:
Public authorities are designed to function for the benefit of the
people of New York through various activities including financing,
building, and managing public projects and improving a variety of
governmental functions. Utilized at all levels of government, the state
relies on public authorities to deliver vital services to the people of
New York.
While public authorities perform important quasi-governmental functions
for the benefit of the people of New York, they lack transparency and
Regulation which may allow waste and abuse to occur, undermining the
public trust. Their unique niche between public agencies and private
entities restrict the extent of oversight, accountability and transpar-
ency in their actions Preventing companies from "shopping around" for
the best financial benefit possible from industrial development agencies
(IDAs) is crucial to ensure public authorities are acting in the best
interest of the public. While IDAs across the state provide important
competitive incentives to attract and retain business, competition among
IDAs that serve overlapping communities may harm, rather than benefit,
the public by providing unnecessary or unwarranted financial incentives.
This bill will prohibit county IDAs from offering financial assistance
to private companies for projects located in a municipality within the
county where such municipality has its own IDA.
RACIAL JUSTICE IMPACT:
TBD.
GENDER JUSTICE IMPACT:
TBD.
LEGISLATIVE HISTORY:
2021-22: A6676; referred to local governments.
2019-20: A11029; referred to local governments.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect two years after it shall have become a law.
STATE OF NEW YORK
________________________________________________________________________
8326
2023-2024 Regular Sessions
IN ASSEMBLY
December 13, 2023
___________
Introduced by M. of A. SOLAGES -- read once and referred to the Commit-
tee on Local Governments
AN ACT to amend the general municipal law, in relation to disallowing
county industrial development agencies from offering incentives in
municipalities which have their own industrial development agency
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The general municipal law is amended by adding a new
2 section 863 to read as follows:
3 § 863. Restrictions on incentives. No county agency shall offer any
4 incentives, including, but not limited to, financial assistance, tax
5 incentives, payments in lieu of taxes, funding, or any other incentive,
6 in a municipality located within the county where such municipality has
7 its own agency.
8 § 2. This act shall take effect two years after it shall have become a
9 law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05842-01-3
