New York A 248: Authorizes recoupment of financial incentives awarded businesses upon failure to fulfill the terms of such incentive

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A00248 Summary:

BILL NOA00248 

&nbsp

SAME ASSAME AS S09521

&nbsp

SPONSORMagnarelli

&nbsp

COSPNSREachus

&nbsp

MLTSPNSR

&nbsp

Add §163-b, Exec L

&nbsp

Authorizes recoupment by the state or any political subdivision of financial incentives such as awards, loans, grants or tax abatements, awarded businesses for purposes of job training, job creation or retention, or the development of business operations, upon recipient's failure to complete the terms of the incentive.

Go to top A00248 Actions:

BILL NOA00248 

&nbsp

01/08/2025referred to governmental operations

01/07/2026referred to governmental operations

Go to topA00248 Committee&nbspVotes:

Go to topA00248 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA00248 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 248

 2025-2026 Regular Sessions

 IN ASSEMBLY

 (Prefiled)

 January 8, 2025
 ___________

 Introduced by M. of A. MAGNARELLI, EACHUS -- read once and referred to
 the Committee on Governmental Operations

 AN ACT to amend the executive law, in relation to the recoupment of
 economic incentives to businesses

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. The executive law is amended by adding a new section 163-b
 2 to read as follows:
 3 § 163-b. Recoupment of economic incentives. 1. Notwithstanding any
 4 inconsistent provision of law, each contract, agreement or understanding
 5 by which a person, firm, partnership, company, association or corpo-
 6 ration receives an award, grant, loan, tax abatement or other business
 7 incentive from the state, any of its political subdivisions, or any
 8 department, bureau, board, commission, authority, or any other agency or
 9 instrumentality of the state or its political subdivisions, or any
 10 public benefit corporation as defined in subdivision four of section
 11 sixty-six of the general construction law, or any municipal corporation
 12 as defined in subdivision three of section three-a of the general munic-
 13 ipal law for the purposes of job training, job creation or retention, or
 14 the development of its operation within the state, shall contain the
 15 following provisions:
 16 (a) a stated period of time within which the terms of the contract,
 17 agreement or understanding are to be fully executed and completed;
 18 (b) a stated purpose and the amount of the award, grant or other busi-
 19 ness incentive;
 20 (c) where applicable, the number of persons to be trained pursuant to
 21 the terms of the contract, agreement or understanding;
 22 (d) where applicable, the number of jobs to be created or retained
 23 pursuant to the terms of the contract, agreement or understanding;

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD00456-01-5

 A. 248 2

 1 (e) where applicable, the extent of the operations or facilities to be
 2 developed pursuant to the terms of the contract, agreement or under-
 3 standing; and
 4 (f) notice to the recipient that the award, grant or other business
 5 incentive shall be subject to recoupment pursuant to this section.
 6 2. Except as provided in subdivision three of this section, every
 7 award, grant or other business incentive awarded pursuant to this chap-
 8 ter shall be subject to repayment with interest, by the recipient upon a
 9 finding by the awarding entity that the person, firm, partnership,
 10 company, association, or corporation has not fully executed and
 11 completed the stated purposes or objectives of the award, grant or other
 12 business incentive within the stated period of time as set forth in the
 13 contract, agreement or understanding.
 14 3. If the awarding entity determines that the recipient who has
 15 received an award, grant or other business incentive under this chapter
 16 is not complying with the contract, agreement or understanding entered
 17 into with the awarding entity, it shall notify the recipient of such
 18 noncompliance. Such notice shall state that the recipient is entitled
 19 to a hearing and an opportunity to explain the noncompliance. If the
 20 entity finds that the recipient has not complied with the contract,
 21 agreement or underst