BILL NUMBER: S3284
SPONSOR: SKOUFIS
 
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 OF PROVISIONS:
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 prohibition virtually meaningless, and
intra-state "piracy" occurs with regularity. For example, in February
2019, the Westchester County IDA granted financial assistance to a busi-
ness 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.
 
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.

Statutes affected:
S3284: 862 general municipal law, 862(1) general municipal law