BILL NUMBER: S9052
SPONSOR: SKOUFIS
 
TITLE OF BILL:
An act to amend the general municipal law and the executive law, in
relation to extending the term and authority of the independent monitor
for the Orange county industrial development agency, and modifying the
applicability of certain tax exemptions based on population; to amend
part III of chapter 58 of the laws of 2023, amending the general munici-
pal law and the executive law relating to directing the state inspector
general to appoint an independent monitor for the Orange county indus-
trial development agency, in relation to the effectiveness thereof; and
providing for the repeal of certain provisions upon the expiration ther-
eof
 
PURPOSE:
This bill would ensure continued independent oversight of the Orange
County Industrial Development Agency and responsible stewardship of
taxpayer-funded benefits.
 
SUMMARY OF PROVISIONS:
Section 1: Amends section 912 of the general municipal law to renumber
certain subdivisions.
Section 2: Amends section 912 of the general municipal law to include a
definition of "monitor;" provides discretion to the Inspector General to
extend the term of the appointed monitor and to exempt such extension
from article eleven of state finance law; provides that the monitor
shall advise the agency's board or employees in writing of their
approval or disapproval of any proposed contract for financial assist-
ance; prohibits any such contract be voted on by the agency's board
unless the monitor has provided prior approval of such; sets forth a
formal process for adoption or denial of any recommendations made by the
monitor within forty-five days of receiving such; allows the monitor to
direct the agency's board to recoup financial assistance where the
recipient has failed to meet the terms of a contract including, but not
limited to, job creation goals; extends the monitor's oversight authori-
ty to include the operations of the Orange county funding corporation;
and, provides that the monitor may commence an action in court against
the Orange County Industrial Agency in the event that the Agency fails
to make required payments related to the monitor's service or legal
counsel.
Section 3: Makes technical amendments to subdivision 8 of section 54 of
the executive law.
Section 4: Provides that any privately-owned project receiving benefits
asof-right under the 485-B property tax program, or receiving a
payment-inlieu-of-taxes agreement from an IDA, within a county of
between 390,000 and 415,000 residents shall be subject to prevailing
wage for all labor used for the project.
Section 5: Amends section 3 of part III of chapter 58 of the laws of
2023, extending the length of the monitor's term from three years from
the date of original passage to six years.
Section 6: Sets the effective date.
 
JUSTIFICATION:
In response to the Orange County Industrial Development Agency's (IDA)
recent history of criminally corrupt leadership, including three felony
convictions of top IDA officials, as well as continued failure to vet
and provide oversight of IDA applications, the Legislature was compelled
to install an independent monitor in 2023. Doing so was a necessary and
fiscally responsible step, aimed at restoring the confidence of local
taxpayers and ensuring fair and consistent application of IDA benefits
for business attraction.
In 2025, the independent monitor identified numerous examples of IDAsup-
ported projects which were not meeting or had not met the job creation
goals set forth within their contracts for receiving IDA benefits. The
agency failed to track job creation figures a basic responsibility and
was caught off-guard by the monitor's discoveries.
Later that year, the IDA attempted to advance an $80 million property
tax break package for an Amazon facility against the wishes of thousands
of local taxpayers and officials, which would have subsidized the
creation of hundreds of poverty-level-wage jobs. Subsequently, the
independent monitor vetoed the IDA's proposed incentive package on
behalf of taxpayers, particularly citing the IDA's lack of transparency
and willingness to facilitate answers to basic questions about the
application. Rather than attempting to renegotiate a more favorable
arrangement with all parties that would have better aligned with the
monitor's guidance, the IDA opted to take the extraordinary step of
suing the state-appointed monitor and the state's Inspector General.
Notably, the monitor has identified dozens of shortcomings and lacking
practices within the agency's controls that have led to many recommenda-
tions some adopted, some not over the years. The monitor's value in this
regard has proven indispensable.
Additionally, the monitor's presence has deterred many bad actors from
applying for IDA benefits that would have proven unneeded for their
respective projects to advance, providing taxpayers with enormous
savings given the IDA's long history of non-existent vetting of "but
for" requirements.
With the monitor's statutory term set to sunset in May 2026, it is clear
that the term and authority of the independent monitor must be extended
to curb the fly-by-night deal-making and operational deficiencies of the
IDA that continue to harm local taxing jurisdictions. This bill would
extend the monitor's term for three more years, add enhanced oversight
authority, and expand this authority, allowing the monitor to oversee
the operation of the Orange County Funding Corporation, the IDA's non-
profit arm.
Further, this bill specifies that any privately-owned project receiving
benefits as-of-right under the 485-B property tax program - or receiving
a payment-in-lieu-of-taxes agreement from a local IDA - within a county
of between 390,000 and 415,000 residents shall be subject to prevailing
wage for all labor used for the project. This measure ensures good-pay-
ing jobs for Orange County's construction workers for projects not
moving through the IDA process because, rightfully, the monitor's pres-
ence has deterred applications that serve as nothing more than a taxpay-
er-funded giveaway.
Without continued independent oversight of the Orange County IDA, anti-
taxpayer abuses will persist. The monitor's extension would protect
Orange County's taxpayers, while ensuring the county's economic develop-
ment needs are appropriately and responsibly met.
 
LEGISLATIVE HISTORY:
Senate
2026: New bill
 
FISCAL IMPLICATIONS:
N/A
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S9052: 54 executive law, 54(8) executive law