Prohibits industrial development agencies from incentivizing movements within the state where any plant, facility, or personnel of the project occupant are abandoned or removed.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A11017
SPONSOR: Solages TITLE OF BILL:
An act to amend the general municipal law, in relation to prohibiting
industrial development agencies from incentivizing movements within the
state
PURPOSE:
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:
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: Sets Effective Date.
JUSTIFICATION:
The purpose of IDAs is to incentivize companies to locate in the county
or municipality of the IDA through offering financial assistance through
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 statute
contains exceptions that are so broad and vague as to render the prohi-
bition virtually meaningless, and intra-state "piracy" occurs with regu-
larity. For example, in February 2019, the Westchester County IDA grant-
ed 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 does not benefit state
residents and should not be encouraged by taxpayer-funded subsidies.
RACIAL JUSTICE IMPACT:
TBD
GENDER JUSTICE IMPACT:
TBD
LEGISLATIVE HISTORY:
Senate
2019: S4674, Referred to Local Government
2020: S4674, Referred to Local Government
2021: S1656A, Passed Senate
2022: S1656A, Passed Senate
2023: S1240, Referred to Local Government
2024: S1240, Referred to Local Government
Assembly
2019: A7200, Referred to Local Governments
2020: A7200, Referred to Local Governments
2021: A6993A, Reported and Referred to Ways and Means
2022: A6993A, Reported to Ways and Means
2023: A1485, Referred to Local Governments
2024: A1485, Referred to Local Governments
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect immediately
STATE OF NEW YORK
________________________________________________________________________
11017
IN ASSEMBLY
April 21, 2026
___________
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 prohibiting
industrial development agencies from incentivizing movements within
the state
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 1 of section 862 of the general municipal law,
2 as amended by section 1 of part J of chapter 59 of the laws of 2013, is
3 amended to read as follows:
4 (1) No funds of the agency shall be used in respect of any project if
5 the completion thereof would result in the removal of [an industrial or
6 manufacturing] any plant, facility or personnel of the project occupant
7 from one area of the state to another area of the state [or], in the
8 abandonment of one or more plants or facilities of the project occupant
9 located within the state or the unemployment or relocation of any
10 personnel who are employed by the project occupant, provided, however,
11 that neither restriction shall apply if the agency shall determine on
12 the basis of the application before it that the project is reasonably
13 necessary to discourage the project occupant from removing such other
14 plant or facility to a location outside the state or is reasonably
15 necessary to preserve the competitive position of the project occupant
16 in its respective industry due to physical, zoning, or logistical
17 constraints at such project occupant's existing site within the state.
18 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04755-01-5
