BILL NUMBER: S4658A
SPONSOR: RYAN S
 
TITLE OF BILL:
An act to amend the general municipal law and the public authorities
law, in relation to prohibiting the use of funds, financial incentives
or subsidies where facilities or property are used primarily for e-com-
merce storage and transfers, or the facilitation thereof
 
PURPOSE:
The purpose of this bill is to prevent industrial development agencies
from providing subsidies to large multi-national corporations to build
storage and warehouse facilities.
 
SUMMARY OF PROVISIONS:
Section 1: Amends section 862 of the general municipal law to include a
new subdivision, subdivision 3, which would prohibit industrial develop-
ment agencies from giving funds, financial incentives, and subsidies to
any project where facilities or property are used primarily for e-com-
merce storage and transfers.
Section 2: Amends the second undesignated paragraph of section 1953 of
the public authorities law to be consistent with section 862 of the
general municipal law.
Section 3: Amends the second undesignated paragraph of section 2306 of
the public authorities law to be consistent with section 862 of the
general municipal law.
Section 4: Effective date.
 
EXISTING LAW:
None.
 
JUSTIFICATION:
Industrial development agencies, or IDAs, exist primarily to incentivize
economic development by attracting businesses and creating jobs. The
incentives offered by IDAs often include the waiving state and local
taxes, which results in significant loss over the term of the incentive,
and in return often only provides a few minimum wage or low wage jobs.
Additionally, many incentives have recently been given to large multina-
tional corporations at the expense of New York Taxpayers. New York IDA
subsidies given to Amazon have diverted a quarter billion dollars in
just the past two years. This was not the legislative intent when IDAs
were established in 1969 to improve economic conditions and facilitate
economic development in localities.
This bill would prohibit IDAs from offering incentives for e-commerce
storage and transfer facilities often given to large, multi-billion-dol-
lar corporations with dubious economic growth projections at the expense
of local municipalities and their residents.
 
LEGISLATIVE HISTORY:
2022: S8418/A9636 2024: S127/A1048
 
FISCAL IMPLICATIONS:
None to the State.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S4658: 862 general municipal law
S4658A: 862 general municipal law, 1953 public authorities law, 2306 public authorities law