BILL NUMBER: S5171
SPONSOR: SKOUFIS
 
TITLE OF BILL:
An act to amend the general municipal law, in relation to preventing the
use of funds, financial incentives, subsidies or tax exemptions for
project occupants which are not public
 
PURPOSE:
This bill would prohibit industrial development agencies (IDAs) from
giving financial assistance to projects where the project occupant is
kept secret from the public. Taxpayers should know which companies their
money is going to support.
 
SUMMARY OF PROVISIONS:
Section 1: Adds a new subdivision 3 to section 862 of the general munic-
ipal law stating that IDAs may not give financial incentives or subsi-
dies to a project in which the project occupant is not publicly
disclosed at the time of the required public hearing for the project.
Section 2: Adds a new subdivision 13 to section 874 of the general
municipal law stating that IDAs may not grant tax exemptions to a
project in which the project occupant is not publicly disclosed at the
time of the required public hearing for the project.
Section 3: Sets Effective date.
 
JUSTIFICATION:
Each year, local industrial development agencies grant millions of
dollars of financial assistance through tax incentives, payment in lieu
of taxes (PILOT) agreements, and others to projects seeking assistance.
Sometimes, these incentives are given out without any way for the public
to know what company is receiving them. For example, in the Town of
Montgomery in Orange County, the local IDA is offering incentives to
developers of a 1-million-square-foot warehouse. Although the develop-
ers have indicated they will pass the benefits of the incentives to the
future occupant of the warehouse, they are refusing to identify which
company that will be even though they admit that the occupant is known
to them. New Yorkers have a right to know which companies are getting
publicly funded incentives or sales tax exemptions. This bill would
prohibit IDAs from giving incentives or exemptions to a project unless
the occupant of the project is publicly known.
 
LEGISLATIVE HISTORY:
Senate
2019: S4467, Referred to Local Government
2020: S4667, Referred to Local Government
2021: S1655, Referred to Local Government
2022: S1655, Referred to Local Government
2023: S3576, Referred to Local Government
2024: S3576, Referred to Local Government
Assembly
2019: A7256, Referred to Local Government
2020: A7256, Referred to Local Government
2021: A5200, Referred to Local Government
2022: A5200, Referred to Local Government
2023: A6606, Referred to Local Government
2024: A6606, Referred to Local Government
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S5171: 862 general municipal law, 874 general municipal law