Ida Draft Bill Clean

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Section 1. Section 854 of the general municipal law, as amended by chapter 58 of the laws of 2005, is amended to read as follows: § 854. Definitions As used in this act, unless the context otherwise requires: (1) "Agency"--shall mean an Industrial Development Agency created pursuant to this act. (2) "Bonds"--shall mean the bonds, notes, interim certificates and other obligations issued by the agency pursuant to this act. (3) "Municipality"--shall mean any county, city, village, town or Indian reservation in the state. (4) "Project"-shall mean any land, any building or other improvement, and all real and personal properties located within the state of New York and within or outside or partially within and partially outside the municipality for whose benefit the agency was created, including, but not limited to, machinery, equipment and other facilities deemed necessary or desirable in connection therewith, or incidental thereto, whether or not now in existence or under construction, which shall be suitable for manufacturing, warehousing, research, commercial or industrial purposes or other economically sound purposes identified and called for to implement a state designated urban cultural park management plan as provided in title G of the parks, recreation and historic preservation law and which may include or mean an industrial pollution control facility, a recreation facility, educational or cultural facility, a horse racing facility, [or] a railroad facility, or civic facility, provided, however, no agency shall use its funds in respect of any project wholly or partially outside the municipality for whose benefit the agency was created without the prior consent thereto by the governing body or bodies of all the other municipalities in which a part or parts of the project is, or is to be, located. (5) "Governing body"--shall mean the board or body in which the general legislative powers of the municipality are vested.

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(6) "Mortgage"--shall mean a mortgage or other security device. (7) "Revenues"--shall mean all rents, revenues, fees, charges and other sources of income derived by the agency from the leasing, sale or other disposition of a project or projects. (8) "Industrial pollution control facility"--shall mean any equipment, improvement, structure or facility or any land and any building, structure, facility or other improvement thereon, or any combination thereof, and all real and personal property deemed necessary therewith, which if within any city are not of a character or nature then or formerly furnished or supplied by the city, having to do with or the end purpose of which is the control, abatement or prevention of land, sewer, water, air, noise or general environmental pollution deriving from the operation of industrial, manufacturing, warehousing, commercial, recreation and research facilities, including, but not limited to any air pollution control facility, noise abatement facility, water management facility, waste water collecting system, waste water treatment works, sewage treatment works system, sewage treatment system or solid waste disposal facility or site. (9) "Recreation facility"--shall mean any facility for the use of the general public as spectators or participants in recreation activities, including but not limited to skiing, golfing, swimming, tennis, ice skating or ice hockey facilities, together with all buildings, structures, machinery, equipment, facilities and appurtenances thereto which the agency may deem necessary, useful or desirable in connection with the construction, improvement or operation of any such facility, including overnight accommodations and other facilities incidental thereto and facilities that may permit the use of recreation facilities by the general public as participants in recreation activities, but shall not include facilities for automobile or horse racing or other similar activities. (10) "Horse racing facility"--shall mean any facility for the use of the general public for purpose of conducting pari-mutuel wagering, licensed by the state racing and wagering board, as of January first, nineteen hundred seventy-seven, except non-profit racing associations, including buildings, structures, machinery, equipments, facilities and appurtenances thereto, the construction, reconstruction, acquisition and/or improvement of which shall have been approved by the state racing and wagering board, and which the agency may deem necessary, useful or 2

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desirable in connection with the construction, improvement or operation of such racing facility. (11) "Railroad facility"--shall mean, but shall not be limited to, railroad rights-of-way, beds, bridges, viaducts, tracks, switches and rolling stock and any other attendant structure, equipment, facility or property necessary or appropriate to railroading conducted in conjunction with industrial, commercial, manufacturing, recreational or warehousing operations; provided, however, that (i) no agency shall itself operate a railroad facility for freight or passenger service, but may lease or otherwise make such facility available to an operator, subject to an agreement for the maintenance and operation of such facility for freight or passenger service, provided that passenger service does not constitute the primary purpose of the railroad facility; (ii) prior to undertaking any project involving acquisition, construction, reconstruction, improvement, maintenance, equipping or furnishing of a railroad facility, an agency shall submit its plans for the proposed project to the commissioner of transportation; the commissioner shall, within sixty days of his receipt of the proposal, submit an analysis of the financial and operational feasibility of the proposed project, along with any recommendations for modification for improving the project's viability, to the agency, the governor, the commissioner of commerce, the temporary president of the senate, the speaker of the assembly and the governing body of the municipality in which the agency is located; and (iii) no agency shall enter into any contract for the acquisition, construction, reconstruction, improvement, maintenance, equipping or furnishing of a railroad facility until fifteen days after the submission of the analysis and recommendations of the commissioner of transportation, or seventy-five days after submission of the agency's plan to the commissioner, whichever is earlier. (12) "Educational or cultural facility"--shall mean any facility identified and called for to implement a state designated heritage area management plan as provided in title G of the parks, recreation and historic preservation law that is open to the public at large as participants in educational and cultural activities including but not limited to theaters, museums, exhibitions and festival and interpretive facilities, together with buildings, structures, machinery, equipment, facilities and appurtenances thereto which the agency may deem necessary, useful or desirable in connection with the construction, improvement or operation of any such facility, including overnight accommodations and other facilities incidental thereto and facilities that may permit 3

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the use of educational or cultural facilities by the general public. (13) "Employer" -- shall mean any individual, partnership, association, corporation, limited liability company, business trust, legal representative or any organized group of persons who suffers or permits an individual to work on the premises of a project which is receiving financial assistance from the agency. (14) "Financial assistance" -- shall mean the proceeds of bonds issued by an agency, straightleases, or exemptions from taxation claimed by a project occupant as a result of an agency taking title, possession or control (by lease, license or otherwise) to the property or equipment of such project occupant or of such project occupant acting as an agent of an agency. (15) "Straight-lease transaction" -- shall mean a transaction in which an agency takes title, possession or control (by lease, license or otherwise) to the property or equipment of a project occupant, entitling such property or equipment to be exempt from taxation according to the provisions of section eight hundred seventy-four of this article, and no financial assistance in the form of the proceeds of bonds issued by the agency is provided to the project occupant. (16) "Affected tax jurisdiction" -- shall mean any municipality or school district, in which a project is located, which will fail to receive real property tax payments, or other tax payments which would otherwise be due, except for the tax exempt status of an agency involved in a project. (17) "Payments in lieu of taxes" -- shall mean any payment made to an agency, or affected tax jurisdiction equal to the amount, or a portion of, real property taxes, or other taxes, which would have been levied by or on behalf of an affected tax jurisdiction if the project was not tax exempt by reason of agency involvement. (18) "Highly distressed area" -- shall mean (a) a census tract or tracts or block numbering areas or areas or such census tract or block numbering area contiguous thereto which, according to the most recent census data available, 4

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has: (i) a poverty rate of at least twenty percent for the year to which the data relates or at least twenty percent of households receiving public assistance; and (ii) an unemployment rate of at least 1.25 times the statewide unemployment rate for the year to which the data relates; or (b) a city, town, village or county within a city with a population of one million or more for which: (i) the ratio of the full value property wealth, as determined by the comptroller for the year nineteen hundred ninety, per resident to the statewide average full value property wealth per resident; and (ii) the ratio of the income per resident; as shown in the nineteen hundred ninety census to the statewide average income per resident; are each fifty-five percent or less of the statewide average; or (c) an area which was designated an empire zone pursuant to article eighteen-B of this chapter. (19) "Continuing care retirement community" -- shall mean any facility that has been granted a certificate of authority pursuant to article forty-six or forty-six-A of the public health law and is established to provide, pursuant to continuing care retirement contracts approved pursuant to article forty-six of the public health law, or fee-for-service continuing care contracts approved pursuant to article forty-six-A of the public health law, a comprehensive, cohesive living arrangement for the elderly, and certified by the commissioner of health, that (i) has been approved for the issuance of industrial development agency bonds by the continuing care retirement community council pursuant to section forty-six hundred four-a of the public health law except that paragraphs b and g of subdivision two of section forty-six hundred four-a of the public health law shall not apply to a continuing care retirement community granted a certificate of authority pursuant to article forty-six-A of the public health law and (ii) is a not-for-profit corporation as defined in section one hundred two of the not-for-profit corporation law that is (a) eligible for tax-exempt financing under section forty-six hundred four-a of the public health law and this chapter and (b) is exempt from taxation pursuant to section 501(c)(3) of the federal internal revenue code; except that "continuing care retirement community" shall not include a facility granted a certificate of authority upon application of a state or local government applicant. 5

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(20) “Construction” – shall mean any work involving construction, demolition, reconstruction, excavation, rehabilitation, repair, renovation, alteration or improvement of a new or existing structure, improvement, road or other appurtenance in connection with a project as defined in this section. Notwithstanding the foregoing, offsite fabrication of ductwork, cabinetry, or other building components connected with such construction shall not fall within this definition. (21) “Building service employee” – shall mean any person performing work in connection with the care or maintenance of a building, or the transportation of office furniture or equipment, or the delivery of fuel. This includes, but is not limited to the following: guard, doorman, building cleaner, porter, handyman, janitor, groundskeeper, elevator operator, collector of garbage. (22) “Wholesale trade facility” – shall mean an establishment engaged in sales to other businesses as an intermediate step in the production or distribution of goods, products, or merchandise for sale. Wholesale trade sales can include, but not be limited to, goods for resale to other wholesalers or retailers, capital durable or non-durable goods, nonconsumer goods, or raw and intermediate materials and supplies used in production. (23) “Retail trade facility” – shall mean an establishment engaged in the sale of goods, products, or merchandise to the public, or to business and institutional customers through point of sale locations or catalog showrooms. The term retail trade facility also includes big box stores, supply stores, and non-store retailers utilizing methods including, but not limited to, direct response advertising, catalogs, door-to-door solicitation, in-home demonstration, portable stalls, and vending machines. (24) “Warehousing facility” – shall mean an establishment engaged in operating warehousing and storage facilities for storing or otherwise handling general merchandise, refrigerated goods, and other products. Warehousing companies also include establishments providing logistical services related to the distribution of goods including, but not limited to, labeling, breaking bulk, inventory control and management, light assembly, order entry and fulfillment, packaging, pick and pack, price marking and ticketing, and transportation arrangement.

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(25) “Accommodation and food services facility ” – shall mean an establishment providing customers with lodging or whose primary purpose is preparing meals, snacks and beverages for immediate consumption, provided however, that accommodation and food services facility shall not include such establishments operated by civic or social organizations or incidentally located within entertainment or recreational facilities. For purposes of this subdivision, entertainment or recreational facilities shall include stadiums, amusement parks, and similar venues not otherwise covered under subdivisions 9, 10, or 12 of this section. (26) “Laundry and dry cleaning facility” – shall mean an establishment engaged in supplying bulk laundered items to other businesses including work uniforms and related work clothing, tablecloths and napkins, floor mats, and sheets, towels and other linens. Laundry and dry cleaning facility may also include establishments providing laundry and dry cleaning services for one or more retail dry cleaning establishments. (27) “Civic facility” – shall mean a two or four year college or university, a facility covered by article 28 of the New York state public health law, or a large cultural facility with no less than 500 employees, owned or occupied by a not-for-profit corporation organized and existing under the law of this state or authorized to conduct activities in this state. The term “civic facility” shall not include affordable housing projects or charter schools. (28) "Employee" shall mean a person suffered or permitted to work by an employer.

§ 2. The general municipal law is amended by adding a new section 859-e to read as follows: § 859-e. Mandated hourly wages. 1. Whenever a recipient of financial assistance from an agency enters into any contract, subcontract, lease, grant, bond, covenant or other agreement for or in connection with any construction, demolition, reconstruction, excavation, rehabilitation, repair, renovation, alteration, or improvement work on a project, such project shall be deemed to be a public work for the purposes of article eight of the labor law and all the provisions of such 7

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article shall apply to such project, including, but not limited to, the employer’s obligation to pay prevailing wages and supplements as established by the commissioner of labor. 2. Notwithstanding the foregoing, an agency may allow employees engaging in any work covered by subdivision 1 of this section to be paid an alternate hourly wage in lieu of the wage set forth in subdivision 1 pursuant to the terms of a project labor agreement. For purposes of this section, a project labor agreement shall mean a pre-hire collective bargaining agreement between a contractor and a bona fide building and construction trade labor organization establishing the labor organization as the collective bargaining representative for all persons who will perform work on a project financed by the agency, and which provides that only contractors and subcontractors who sign a pre-negotiated agreement with the labor organization can perform project work. 3. Whenever financial assistance is provided to a recipient by an agency for a project that will employ 100 or more workers, all work performed in connection with the care or maintenance of a building, or the transportation of office furniture or equipment, or the delivery of fuel, including but not limited to the following: guard, doorman, building cleaner, porter, handyman, janitor, groundskeeper, elevator operator, and collector of garbage, shall be deemed to be building service work for the purposes of article nine of the labor law and all the provisions of such article shall apply, including, but not limited to, the employer’s obligation to pay the relevant prevailing building service wages and supplements established by the commissioner. 4. Whenever financial assistance is provided to a recipient by an agency for a project that will employ 100 or more workers involving a wholesale trade facility, retail trade facility, warehousing facility, accommodation and food services facility, laundries and dry cleaning facility, or civic facility as defined in subdivision 27 of this article, all individuals employed in connection with such enumerated projects not otherwise covered under subdivisions 1, 2, or 3 of this section, shall be paid the following wages: on covered projects located in the five boroughs of the City of New York, $19.20 per hour; on covered projects located on Long Island, and in Westchester, Rockland, and Putnam counties, $16.98 per hour; for covered projects located in the remainder of the state, $14.68 per hour, provided however, that wages required under this subdivision shall be adjusted annually by the commissioner of labor pursuant to an index formula established by the commissioner based upon data derived from the United States Department of 8

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Labor’s annual index of the Lower Living Standard Income Level (LLSIL) for a family of three. The commissioner of labor shall issue her annual adjustment within one month of the issuance of the United States Department of Labor’s annual index. 5. The provisions of subdivisions 1 through 4 of this section shall apply to projects involving civic facilities only where the bond amount provided by the agency exceeds $10 million. 6. The provisions of subdivisions 1 through 4 of this section shall apply to projects, other than civic facilities, only where the value of the project exceeds either the following net exemptions for the life of the exemption period or bond amounts: Region

Net Exemptions for Life of

Bond Amount

Exemption Period Bronx, Queens, Manhattan, Brooklyn, and Staten Island

$92,000

$7,500,000

Long Island, Westchester, Rockland & Putnam Counties

$56,841

$6,500,000

Remainder of State

$96,115

$4,650,000

7. The wage requirements set forth in this section shall remain in effect for the life of the exemption period. 8. For purposes of this section, “Net exemptions” are the total exemptions minus any payments in lieu of taxes paid to any municipalities and “life of the exemption period” is the number of years until maturity of the tax-exempt bond or the duration of the tax credits. 9. No funds of the agency shall be used in respect to any project that has been segmented so as to avoid the application of the mandated hourly wage requirements set forth in this section. For purposes of this section, a project shall be presumed to be segmented if it has been divided to such a degree that each phase of the project would not meet the size thresholds set forth in this section but, if not so divided, would have met such thresholds.

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10. A project financed through a local development corporation as defined pursuant to Article 8 of the Public Authorities Law that could otherwise receive financial assistance pursuant to this section shall be treated as though it received financial assistance pursuant to this section. § 3. This Act shall be effective immediately and shall apply to all projects financed by industrial development agencies on or after such date and shall remain in effect until five years from its effective date, provided however, that any wage requirements imposed pursuant to section two of this bill shall not otherwise be affected by the sunset of sections one and two of this bill but shall remain in effect throughout the life of the exemption period of an applicable project financed by an industrial development agency.

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