Blog Economic Development

Governor Should Reject Ten Economic Development Bills

June 25, 2018

Updated January 3, 2019. Four of the bills have been signed by the Governor and the remaining six have been vetoed

When the legislative session ended on June 21, ten bills to expand economic development spending had been passed by both houses of the Legislature and will eventually end up on the Governor’s desk to sign or veto. Unfortunately, despite Senate passage, the Assembly did not advance a measure to create a database of deals to increase disclosure of economic development expenditures, nor did it adopt the State Comptroller’s Procurement Integrity Act, which would have brought additional controls onto the State’s economic development spending.

Until there is comprehensive reform of economic development programs, including transparent reporting on all current projects, no new programs should be created and no existing programs expanded. The ten bills from CBC’s Economic Development Scorecard that passed both houses should be rejected by the Governor.

Category Program (if existing) Industry or geographic area impacted Bill Numbers and Sponsors Last Action Description Fiscal Impact, if Available ($ in Millions)
Expand Existing Program Revolving Loan Funds   A8935 (Thiele) S7299 (Lavalle) Signed by Governor 12/07/2018 Lessens reporting requirements for ESD's revolving loan fund programs.  
Expand Existing Program New York State Incubators and Innovation Hot Spots Start-ups A10105 (Schimminger) S7961 (Ranzenhoffer) Signed by Governor 8/24/2018 Allows Hot Spot designation to extend beyond a certain timeframe; allows companies working with both an Innovation Hot Spot and a certified Incubator to receive Hot Spot tax benefits; and requires Incubator sponsors to utilize at least 85% of any associated awards for operation of the incubator. (Governor's Program Bill #167)  
Expand Existing Program Empire State Commercial Production Tax Credit Advertising A10768 (Morelle) S8465 (Golden) Signed by Governor 12/28/2018 Extends the Empire State Commercial Production Tax Credit, currently scheduled to expire at the end of 2018. Capped at $7 million annually for five years, through 2023. $7
New Targeted Program   Microbusiness A2804 (Thiele) S6855 (Bailey) Vetoed by Governor 12/07/2018 Creates microbusiness worker cooperatives, authorizes loans and loan subsidies.  
New Targeted Program Entrepreneurial Assistance Program Minorities, women, people with a disability, dislocated workers, veterans A2805 (Thiele) S3804 (Bailey) Signed by Governor 12/07/2018 Replaces Entrepreneurship Assistance Centers.  
New Targeted Program   Microbusiness A3767 (Quart) S6892 (Kennedy) Vetoed by Governor 12/07/2018 Creates the Microenterprise Development Fund. $1.5
New Targeted Program   Agriculture, rural areas A4772C (Woerner) S4727A (Seward) Vetoed by Governor 11/05/2018 Provides tax credit to insurance corporations that invest in rural business growth funds; establishes the New York Agriculture and Rural Jobs Fund.  
New Targeted Program   Manufacturing A8292 (Seawright) S3362 (Krueger) Vetoed by Governor 12/21/2018 Establishes grant program to fund kitchen incubators/shared-use kitchen facilities established by nonprofit or government sponsors to support small-scale food manufacturing.  
New Targeted Program   Dry cleaners and nail salons A9524 (Kim) S7423 (Avella) Vetoed by Governor 12/28/2018 Provides grants and flexible financing programs to dry cleaning and nail specialty businesses to comply with codes and ventilation requirements. Effective after 90 days.  
New Broad Program     A6175A (Schimminger) S622A (Boyle) Vetoed by Governor 12/28/2018 Authorizes ESD to develop a public awareness campaign promoting businesses located in New York State and publish a Buy New York Online Networking Directory.