§ 859 — Financial records

§ 859. Financial records. 1. (a) Each agency shall maintain books and\nrecords in such form as may be prescribed by the state comptroller.\n (b) Within ninety days following the close of its fiscal year, each\nagency or authority shall prepare a financial statement for that fiscal\nyear in such form as may be prescribed by the state comptroller. Such\nstatement shall be audited within such ninety day period by an\nindependent certified public accountant in accordance with government\naccounting standards established by the United States general accounting\noffice. The audited financial statement shall include supplemental\nschedules listing all straight-lease transactions and bonds and notes\nissued, outstanding or retired during the applicable accounting period\nwhether or not such bonds, notes or transactions are considered\nobligations of the agency. For each issue of bonds or notes such\nschedules shall provide the name of each project financed with proceeds\nof each issue, and whether the project occupant is a not-for-profit\ncorporation, the name and address of each owner of each project, the\nestimated amount of tax exemptions authorized for each project, the\npurpose for which each bond or note was issued, date of issue, interest\nrate at issuance and if variable the range of interest rates applicable,\nmaturity date, federal tax status of each issue, and an estimate of the\nnumber of jobs created and retained by each project. For each\nstraight-lease transaction, such schedules shall provide the name of\neach project, and whether the project occupant is a not-for-profit\ncorporation, the name and address of each owner of each project, the\nestimated amount of tax exemptions authorized for each project, the\npurpose for which each transaction was made, the method of financial\nassistance utilized by the project, other than the tax exemptions\nclaimed by the project and an estimate of the number of jobs created and\nretained by each project.\n (c) Within thirty days after completion, a copy of the audited\nfinancial statement shall be transmitted to the commissioner of the\ndepartment of economic development, the state comptroller and the\ngoverning body of the municipality for whose benefit the agency was\ncreated.\n (d) An agency with no bonds or notes issued or outstanding and no\nprojects during the applicable accounting period may apply to the state\ncomptroller for a waiver of the required audited financial statement.\nApplication shall be made on such form as the comptroller may prescribe.\n (e) If an agency or authority shall fail to file or substantially\ncomplete, as determined by the state comptroller, the financial\nstatement required by this section, the state comptroller shall provide\nnotice to the agency or authority. The notice shall state the following:\n (i) that the failure to file a financial statement as required is a\nviolation of this section, or in the case of an insufficient financial\nstatement, the manner in which the financial statement submitted is\ndeficient;\n (ii) that the agency or authority has thirty days to comply with this\nsection or provide an adequate written explanation to the comptroller of\nthe agency's or authority's reasons for the inability to comply; and\n (iii) that the agency's or authority's failure to provide either the\nrequired financial statement or an adequate explanation will result in\nthe notification of the chief executive officer of the municipality for\nwhose benefit the agency or authority was created of the agency's\nnoncompliance with this section. Where such agency or authority has\nfailed to file the required statement, the comptroller shall\nadditionally notify the agency or authority that continued failure to\nfile the required statement may result in loss of the agency's or\nauthority's authority to provide exemptions from state taxes.\n (iv) If an agency or authority after thirty days has failed to file\nthe required statement or the explanation in the manner required by\nsubparagraph (i) of this paragraph, or provides an insufficient\nexplanation, the comptroller shall notify the chief executive officer of\nthe municipality for whose benefit the agency or authority was created\nand the agency of the agency's or authority's noncompliance with this\nsection. Such notice from the state comptroller shall further delineate\nin what respect the agency or authority has failed to comply with this\nsection. If the agency or authority has failed to file the required\nstatement, the notice shall additionally state that continued failure to\nfile the required statement may result in loss of the agency's or\nauthority's authority to provide exemptions from state taxes.\n (v) If, thirty days after notification of the chief executive officer\nof the municipality for whose benefit the agency or authority was\ncreated of the agency's or authority's noncompliance, the agency or\nauthority fails to file the required statement, the comptroller shall\nnotify the chief executive officer of the municipality for whose benefit\nthat agency or authority was created and the agency or authority that if\nsuch report is not provided within sixty days, that the agency or\nauthority will no longer be authorized to provide exemptions from state\ntaxes.\n (vi) If, sixty days after the notification required by subparagraph\n(v) of this paragraph, the comptroller has not received the required\nstatement, the agency or authority shall not offer financial assistance\nwhich provides exemptions from state taxes until such financial\nstatement is filed and the comptroller shall so notify the agency or\nauthority and the chief executive officer of the municipality for whose\nbenefit the agency was created. Provided, however, that nothing\ncontained in this paragraph shall be deemed to modify the terms of any\nexisting agreements.\n (f) Within thirty days after completion, a copy of an audited\nfinancial statement which contains transactions of or bonds or notes of\ncivic facilities as defined in paragraph (b) of subdivision thirteen of\nsection eight hundred fifty-four of this article, shall be transmitted\nby the agency to the commissioner of health, the chair of the senate\nfinance committee, the chair of the assembly ways and means committee,\nthe chair of the senate health committee and the chair of the assembly\nhealth committee.\n 2. On or before September first of each year, the commissioner of the\ndepartment of economic development shall prepare and submit to the\ngovernor, speaker of the assembly, majority leader of the senate, and\nthe state comptroller, a report setting forth a summary of the\nsignificant trends in operations and financing by agencies and\nauthorities; departures from acceptable practices by agencies and\nauthorities; a compilation by type of the bonds and notes outstanding; a\ncompilation of all outstanding straight-lease transactions; an estimate\nof the total number of jobs created and retained by agency or authority\nprojects; and any other information which in the opinion of the\ncommissioner bears upon the discharge of the statutory functions of\nagencies and authorities.\n 3. On or before April first, nineteen hundred ninety-six, the\ncommissioner shall submit to the director of the division of the budget,\nthe temporary president of the senate, the speaker of the assembly, the\nchairman of the senate finance committee, the chairman of the assembly\nways and means committee, the chairman of the senate local government\ncommittee, the chairman of the senate committee on commerce, economic\ndevelopment and small business, the chairman of the assembly committee\non commerce, industry and economic development, the chairman of the\nassembly local governments committee and the chairman of the assembly\nreal property taxation committee an evaluation of the activities of\nindustrial development agencies and authorities in the state prepared by\nan entity independent of the department. Such evaluation shall identify\nthe effect of agencies and authorities on: (a) job creation and\nretention in the state, including the types of jobs created and\nretained; (b) the value of tax exemptions provided by such agencies and\nauthorities; (c) the value of payments received in lieu of taxes\nreceived by municipalities and school districts as a result of projects\nsponsored by such entities; (d) a summary of the types of projects that\nreceived financial assistance; (e) a summary of the types of financial\nassistance provided by the agencies and authorities; (f) a summary of\ncriteria for evaluation of projects used by agencies and authorities;\n(g) a summary of tax exemption policies of agencies and authorities; and\n(h) such other factors as may be relevant to an assessment of the\nperformance of such agencies and authorities in creating and retaining\njob opportunities for residents of the state. Such evaluation shall also\nassess the process by which agencies and authorities grant exemptions\nfrom state taxes and make recommendations for the most efficient and\neffective procedures for the use of such exemptions. Such evaluation\nshall further include any recommendations for changes in laws governing\nthe operations of industrial development agencies and authorities which\nwould enhance the creation and retention of jobs in the state.\n