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A08325 Summary:

COSPNSRMcDonald, Solages, Friend, Stirpe, Hunter, Tapia, Aubry, Rosenthal L, Steck, Englebright, Abinanti, Thiele, Otis, Woerner, McMahon, Colton, Epstein, Zinerman, Magnarelli, Fahy, Gottfried, Simon, Sillitti, Glick, Ramos, Seawright, Norris, Abbate, Brown K, Buttenschon, Griffin, Jacobson, Cahill, Lupardo, Galef
Add §58, UDC Act; amd §100, Ec Dev L
Relates to the creation of a searchable database; requires the Urban Development Corporation to create or modify an existing searchable database including information on qualified participants receiving state economic development benefits.
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A08325 Actions:

10/20/2021referred to economic development
01/05/2022referred to economic development
02/28/2022amend and recommit to economic development
02/28/2022print number 8325a
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A08325 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
SPONSOR: Wallace
  TITLE OF BILL: An act to amend the New York state urban development corporation act and the economic development law, in relation to the creation of a searcha- ble database   PURPOSE OF THE BILL: This bill would require the Urban Development Corporation to create and maintain a searchable State subsidy and economic development benefits database.   SUMMARY OF SPECIFIC PROVISIONS: This bill would require the Urban Development Corporation with the Commissioner of Economic Development to establish a searchable State subsidy and economic development benefits database. The database would include the name and location of the participant, the time span of received economic development benefits, the type of benefit received, the total number of employees at all sites of a project, the number of jobs a participant is obligated to retain and create during the project, the amount of economic development benefits received for the current reporting year, and a statement of compliance indicating if any other State agency has reduced, cancelled or recaptured economic development benefits from a participant. The database must also have the ability to narrow a search by individual fields, be able to be downloaded entirely or in parts, allow contract and award agreements to be downloaded and provide definitions for each field term and summary of each economic development benefit available. It would be required that the UDC certi- fies it has met the reporting requirement by posting to its website and providing updates on a quarterly basis.   JUSTIFICATION: New York State spends billions of dollars each year on economic develop- ment programs which can be crucial tools to help our state's manufactur- ers, small businesses, entrepreneurs, and emerging technology sectors grow, thrive, and create jobs within the state. However, it is abso- lutely essential that the State's economic development programs are administered in a responsible, transparent, and open manner, and that the performance of the programs can be reliably and accurately measured so that policymakers and the public are able to make informed decisions about future allocation of the State's resources. Entities receiving state assistance often receive subsidies from multiple State funds or programs, which can have different reporting requirements, making it difficult for all but the most seasoned observers to track exactly how much funding any given entity is receiving. The current lack of clarity in reported program metrics and the flow of economic development funds not only makes such decisions difficult, but invites criticism and scru- tiny of the public accountability and openness of the State's programs. To date, six other states have created and implemented searchable data- bases which allow citizens to review programs administered by the state. The creation of a comprehensive searchable database of all State subsidy and economic development benefits would provide New York State citizens and policy makers with•an important tool to monitor the use of taxpayer money to grow our state's economy and create jobs. The public deserves to know whether their money is being invested wisely and whether they are receiving an appropriate return on their investment.   PRIOR LEGISLATIVE HISTORY: S.6613-B of 2017-18/Passed Senate.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: Undetermined.   EFFECTIVE DATE: Ninety days after enactment.
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A08325 Text:

                STATE OF NEW YORK
                               2021-2022 Regular Sessions
                   IN ASSEMBLY
                                    October 20, 2021
        Introduced  by  M.  of A. WALLACE, McDONALD -- read once and referred to
          the Committee on Economic Development -- recommitted to the  Committee
          on  Economic Development in accordance with Assembly Rule 3, sec. 2 --
          committee discharged, bill amended, ordered reprinted as  amended  and
          recommitted to said committee

        AN ACT to amend the New York state urban development corporation act and
          the economic development law, in relation to the creation of a search-
          able database
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Section 1 of chapter 174 of the laws of 1968,  constituting
     2  the  New  York  state  urban  development corporation act, is amended by
     3  adding a new section 58 to read as follows:
     4    § 58. Reporting. (1) Definitions. For the purposes  of  this  section,
     5  the following terms shall have the following meanings:
     6    (a) "Economic development benefits" shall mean and include the follow-
     7  ing:
     8    (i)  available state resources and/or funds including, but not limited
     9  to, state grants,  loans,  loan  guarantees,  loan  interest  subsidies,
    10  and/or subsidies; and/or
    11    (ii)  tax credits, tax exemptions or reduced tax rates and/or benefits
    12  which are applied for and preapproved or certified by  a  state  agency;
    13  and
    14    (a-1)  "Empire  state  economic development benefits" shall mean those
    15  economic development benefits made available to  the  urban  development
    16  corporation  and/or the department of economic development to award such
    17  benefits to qualified recipients, or those economic development benefits
    18  which are allocated to the corporation and/or such  department  but  are
    19  subsequently  allocated  to  another  state  agency or other independent
    20  entities for them to make such awards to qualified recipients;
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 8325--A                          2
     1    (a-2) "Aggregate economic development benefits" shall mean those bene-
     2  fits provided for in paragraphs (a) and (a-1) of  this  subdivision  and
     3  displayed separately in the database created pursuant to subdivision two
     4  of this section;
     5    (b) "Qualified participant" shall mean an individual, business, limit-
     6  ed  liability  corporation  or any other entity that has applied for and
     7  received approval for  and/or  is  the  beneficiary  of,  any  aggregate
     8  economic  development  benefits  of  ten  thousand  dollars  or more per
     9  project;
    10    (c) "New York state agency" shall mean any  state  department,  board,
    11  bureau, division, commission, committee, public authority, public corpo-
    12  ration,  council, office or other state governmental entity performing a
    13  governmental or proprietary function for the state, as well as  entities
    14  created  by  any  of  the  preceding  or that are governed by a board of
    15  directors or similar body a majority of which is designated  by  one  or
    16  more state officials;
    17    (d)  "Full-time  job"  shall  mean  a  job  in  which an individual is
    18  employed by a qualified participant for at  least  thirty-five  hours  a
    19  week;
    20    (e) "Full-time equivalent" shall mean a unit of measure which is equal
    21  to one filled, full-time, annual-salaried position;
    22    (f)  "Part-time  job"  shall  mean  a  job  in  which an individual is
    23  employed by a qualified participant for less than  thirty-five  hours  a
    24  week; and
    25    (g)  "Contract  job"  shall mean a job in which an individual is hired
    26  for a season or for a limited period of time.
    27    (2) Searchable state subsidy and aggregate economic development  bene-
    28  fits  database.  Notwithstanding  any  laws  to the contrary, the corpo-
    29  ration, in cooperation with  the  department  of  economic  development,
    30  shall  create a searchable database, or modify an existing one, display-
    31  ing Empire state economic development benefits that a qualified  partic-
    32  ipant  has  been  awarded. Such database shall also display other Empire
    33  state economic  development  benefits  such  qualified  participant  has
    34  received  from  another  state  agency  provided that it is for the same
    35  particular project which received the Empire state economic  development
    36  benefits.  Such  searchable  database  shall  include, at a minimum, the
    37  following features and functionality:
    38    (a) the ability to search the database by each of the reported  infor-
    39  mation  to the corporation and for the public viewer to show a qualified
    40  participant which is a recipient of an  aggregate  economic  development
    41  benefit and view a list of all types and amounts of benefits received by
    42  a qualified participant;
    43    (b) for the prior state fiscal year, the following information:
    44    (i)  a  qualified  participant's  name  and project, project location,
    45  project's complete address, including the postal or zip code in a  sepa-
    46  rate searchable field, and the economic region of the state;
    47    (ii) the time span over which a qualified participant is to receive or
    48  has received aggregate economic development benefits;
    49    (iii)  the  type  of  such  aggregate  economic  development  benefits
    50  provided to a qualified participant, including the name of  the  program
    51  or  programs  through  which aggregate economic development benefits are
    52  provided;
    53    (iv) the total number of employees at all sites utilizing such  aggre-
    54  gate  economic development benefits at the time of the agreement includ-
    55  ing the number of permanent full-time  jobs,  the  number  of  permanent

        A. 8325--A                          3
     1  part-time  jobs,  the number of full-time equivalents, and the number of
     2  contract employees;
     3    (v)  for  any aggregate economic development benefit that provides for
     4  job retention and creation that a qualified participant receiving aggre-
     5  gate economic development benefits is contractually obligated to  retain
     6  and create over the life of the project utilizing such aggregate econom-
     7  ic  development benefits, except that such information shall be reported
     8  on an annual basis for agreements containing  annual  job  retention  or
     9  creation  requirements, and for each reporting year, the base employment
    10  level the  entity  receiving  aggregate  economic  development  benefits
    11  agrees  to  retain over the life of the project utilizing such aggregate
    12  economic development benefits, any job creation scheduled to take  place
    13  as a result of the project utilizing such aggregate economic development
    14  benefits  and where applicable, any job creation targets for the current
    15  reporting year;
    16    (vi) the amount of aggregate economic development benefits received by
    17  a qualified participant during the  year  covered  by  the  report,  the
    18  amount  of  aggregate economic development benefits received by a quali-
    19  fied participant since the beginning of  the  project  period,  and  the
    20  present  value  of  the  further aggregate economic development benefits
    21  committed to by the state, but not yet received by a  qualified  partic-
    22  ipant for the duration of the project;
    23    (vii)  for  the  current  reporting  year,  the total actual number of
    24  employees at all sites covered by the project utilizing  such  aggregate
    25  economic  development  benefits, including the number of permanent full-
    26  time jobs, the  number  of  permanent  part-time  jobs,  the  number  of
    27  contract jobs, the number of jobs filled by minorities or women.
    28    (viii)  a  statement  of  compliance  indicating  whether,  during the
    29  current reporting year, the corporation and/or any  other  state  agency
    30  has  reduced,  cancelled  or  recaptured  aggregate economic development
    31  benefits from a qualified participant, and, if so, the total  amount  of
    32  the  reduction,  cancellation or recapture, and any penalty assessed and
    33  the reasons therefor.
    34    (c) the ability to digitally select defined individual  fields  corre-
    35  sponding  to any of the reported information from qualified participants
    36  to create unique database views;
    37    (d) the ability to download the database in its entirety, or in  part,
    38  in a common machine readable format;
    39    (e) the ability to view and download contracts or award agreements for
    40  each  aggregate  economic  development benefit received by the qualified
    41  participant to the extent such contracts or award agreements are  avail-
    42  able to the public pursuant to article six of the public officers law;
    43    (f)  a  definition or description of terms for fields in the database;
    44  and
    45    (g) a summary of each aggregate economic development benefit available
    46  to qualified participants.
    47    (3) Certification regarding reporting. The corporation  shall  certify
    48  to the New York state authorities budget office, the corporation's board
    49  of  directors  and  post to its website that it has fulfilled all of its
    50  reporting requirements as required by law, rules, regulations, or execu-
    51  tive orders. The corporation shall provide a list of  all  reports,  the
    52  due dates of such reports, and certify to the New York state authorities
    53  budget office and the corporation's board of directors, that each report
    54  has been submitted to the individual, office, or entity as prescribed by
    55  applicable laws, rules, and regulations.

        A. 8325--A                          4
     1    (4)  Database  reporting.  The  corporation  may request any data from
     2  qualified participants, which is necessary and required  in  developing,
     3  updating  and  maintaining  the  searchable  database.    Such qualified
     4  participants shall provide any such information requested by the  corpo-
     5  ration.    Beginning  on June first, two thousand twenty-two, the corpo-
     6  ration shall make all reported data on such database  available  to  the
     7  public  on  its  website.  Such database shall be updated on a quarterly
     8  basis with qualified participants added to any programs and any new data
     9  provided by existing qualified participants required reporting.
    10    (5) Reporting. The corporation's senior staff shall report on a  quar-
    11  terly  basis,  to  the  corporation's  board  of directors with a status
    12  update on the development and maintenance of the searchable database.
    13    § 2. Section 100 of the economic development law is amended by  adding
    14  a new subdivision 18-j to read as follows:
    15    18-j.  to  assist  the  urban  development  corporation to establish a
    16  searchable database pursuant to section fifty-eight of the urban  devel-
    17  opment corporation act.
    18    §  3.  This  act shall take effect on the ninetieth day after it shall
    19  have become a law. Effective immediately, the addition, amendment and/or
    20  repeal of any rule or regulation necessary  for  the  implementation  of
    21  this  act  on its effective date are authorized to be made and completed
    22  on or before such effective date.
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