NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6763
SPONSOR: Thiele TITLE OF BILL: An act to amend the general municipal law, in relation
to the powers of the New York state industrial development agency
PURPOSE OR GENERAL IDEA OF BILL:
This bill would provide the necessary authority to Industrial Develop-
ment Agencies to provide loans, grants or early-stage equity funding to
public or private entities.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends the general municipal law to authorize IDAs to provide
loans, grants and seed and early-stage equity funding
Section 2 establishes the effective date.
JUSTIFICATION:
Industrial Development Agencies (IDAs) are local governments' most
important economic development tool. Staff of these IDAs work predomi-
nately to help incumbent employers expand, invest and create jobs in
their communities.
The primary financial incentives that IDAs provide to businesses are
real property, sales and mortgage recording tax exemptions. Through a
Payment-inLieu-of-Tax (PILOT) agreement, IDAs generate significant addi-
tional revenue for local taxing jurisdictions.
IDAs could be even more helpful, however, if they were given clear
authority to make loans or grants as well as to make equity investments
in seed stage or start-up businesses that meet the corporate purposes of
their economic development mission. This bill would afford IDAs the
ability to deploy tens of millions of dollars for economic development.
LEGISLATIVE HISTORY:
2017-18: A.8358
FISCAL IMPLICATIONS:
None to the state.
EFFECTIVE DATE:
Immediately.
STATE OF NEW YORK
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6763
2019-2020 Regular Sessions
IN ASSEMBLY
March 19, 2019
___________
Introduced by M. of A. THIELE -- read once and referred to the Committee
on Local Governments
AN ACT to amend the general municipal law, in relation to the powers of
the New York state industrial development agency
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivisions 16 and 17 of section 858 of the general munic-
2 ipal law, as renumbered by chapter 356 of the laws of 1993, are renum-
3 bered subdivisions 19 and 20 and three new subdivisions 16, 17 and 18
4 are added to read as follows:
5 (16) To provide loans to any private or public corporation or any
6 legal entity provided said loan is memorialized in an appropriate loan
7 agreement and further provided that the loan proceeds are used in furth-
8 erance of the agency's corporate purposes;
9 (17) To provide grants to any private or public corporation or any
10 legal entity provided said grant is memorialized in an appropriate grant
11 agreement stipulating the services to be provided in furtherance of the
12 agency's corporate purposes;
13 (18) Notwithstanding any other law, to provide seed and early-stage
14 equity funding to any private corporation or any legal entity, in
15 accordance with a plan to be developed by the agency, located within, or
16 to be located within, the municipality for whose benefit the agency was
17 created and that is in the seed, early stage or venture stage of devel-
18 opment and that has the potential to generate additional economic activ-
19 ity in New York state provided, however, that funds received by the
20 beneficiary private corporation or legal entity shall be returned if the
21 beneficiary private corporation or legal entity leaves the municipality
22 for whose benefit the agency was created within a period of time to be
23 established by the agency;
24 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00199-01-9
