New York A 6199: Directs the New York state comptroller, in coordination with the departments of economic development and taxation and finance to conduct an audit of all state economic development programs

Bill Text

STATE OF NEW YORK
________________________________________________________________________
6199
2017-2018 Regular Sessions
IN ASSEMBLY
February 27, 2017
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Introduced by M. of A. OAKS, BARCLAY, GIGLIO, GRAF, NORRIS -- Multi-
Sponsored by -- M. of A. M. L. MILLER -- read once and referred to
the Committee on Governmental Operations
AN ACT directing the New York state comptroller, in coordination with
the departments of economic development and taxation and finance to
conduct an audit of all state economic development programs
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. Legislative findings. The legislature finds that the state
2 and local governments of New York play an important role in facilitating
3 economic development, reducing regulations and the creation of jobs.
4 State funding for economic development should be transparent, stream-
5 lined, and encourage job creation in all regions of the state. Empire
6 state development manages statewide economic development programs
7 through several subsidiaries, each with its own board and staff. In
8 addition, there are approximately twenty state agencies performing
9 economic development functions. At the local level, there are one
10 hundred fourteen industrial development agencies, over five hundred
11 local development corporations, eighty-two empire zone boards, one
12 hundred fourteen business improvement districts, forty-nine urban
13 renewal and community development agencies, and ten regional economic
14 development councils, all engaging in economic development activity.
15 Most of the state's economic development programs, especially those
16 providing direct financial assistance, are operated by the department of
17 economic development and the empire state development corporation. The
18 majority of this business support is in the form of grants and loans to
19 businesses and to local units of government to fund economic development
20 activities. This legislation is intended to improve these important
21 tools for economic development by streamlining applications and report-
22 ing, strengthening accountability mechanisms, and encouraging quality
23 job creation for all New Yorkers.
EXPLANATION--Matter in (underscored) is new; matter in bracketsitalics
[ ] is old law to be omitted.
LBD08425-01-7

A. 6199 2
1 § 2. The New York state comptroller in coordination with the commis-
2 sioners of the departments of economic development and taxation and
3 finance shall conduct an audit of all state economic development
4 programs. Such audit shall include but not be limited to:
5 (a) identifying all programs by type and funding source;
6 (b) identifying the types of businesses that have received financial
7 assistance;
8 (c) reviewing information available on job creation or other data on
9 economic expansion;
10 (d) analyzing the geographic distribution of financial assistance
11 throughout the state;
12 (e) reviewing a sample of loans and grants to determine if statutory
13 requirements for the programs were followed; and
14 (f) reviewing information available on economic development programs
15 in other states.
16 The New York state comptroller in coordination with the commissioners
17 of the departments of economic development and taxation and finance
18 shall develop all necessary rules and regulations to conduct an audit of
19 New York state economic development programs as outlined in this
20 section. Following the review and audit of such economic development
21 programs the agencies shall recommend all necessary changes to make such
22 economic development programs more transparent, streamlined, and ensure
23 that such programs are meeting the goals of the laws that established
24 them and providing for a return on investment to the state. The results
25 of this audit must be made available for public review online by Janu-
26 ary 1, 2018.
27 § 3. After the conclusion of the audit, the commissioner of the
28 department of economic development in consultation with the commissioner
29 of taxation and finance shall study the feasibility of reducing the
30 number of economic development programs currently offered by the state
31 and its subsidiaries and replacing these programs with one centralized
32 competitive program. A report of the study, outlining the impact of each
33 of the above steps, shall be filed with the governor, the temporary
34 president of the senate, the minority leader of the senate, the speaker
35 of the assembly and the minority leader of the assembly on or before
36 December 31, 2018.
37 § 4. This act shall take effect immediately.