A 4737: Requires the state comptroller, and the NYC comptroller, to prepare an analysis of the return on investment of certain economic development programs and projects.

  
  STATE OF NEW YORK ________________________________________________________________________ 4737 2025-2026 Regular Sessions  IN ASSEMBLY February 6, 2025 ___________ Introduced by M. of A. RAJKUMAR -- read once and referred to the Commit- tee on Economic Development AN ACT to amend the state finance law, the general city law, the general municipal law, and the administrative code of the city of New York, in relation to an analysis of the return on investment for economic development programs The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "return on investment act". 3 § 2. Section 8 of the state finance law is amended by adding a new 4 subdivision 21 to read as follows: 5 21. (a) Complete an analysis of the return on investment, as such term 6 is defined in section one hundred eighty of the tax law, in the manner 7 prescribed in this section, for every: capital expenditure; financial 8 assistance; credit against a tax imposed; payment in lieu of taxes; 9 development plan; local incentive; urban development action area project 10 as defined in section six hundred ninety-two of the general municipal 11 law; redevelopment plan pursuant to section nine hundred seventy-f of 12 the general municipal law; community development project as defined in 13 section nine hundred fifty-seven of the general municipal law; rebate of 14 sales taxes paid; or rebate or discount of charges for energy, to a 15 private entity by any department, authority, industrial development 16 agency, development corporation, urban renewal agency, council, commis- 17 sion, trust, or other instrument of the state for the purpose of econom- 18 ic development, unless such analysis is otherwise provided for by anoth- 19 er statute. 20 (b) For any one-time project or program, the comptroller shall 21 complete such analysis no later than two years after the completion of 22 the project or program, or five years after its execution, whichever 23 comes first. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08575-01-5 
 A. 4737 2 1 (c) For any recurring program, the comptroller shall complete such 2 analysis of the program no later than two years after the effective date 3 of this section and by January first every five years thereafter. 4 (d) Any entity administering a program or project set forth in para- 5 graph (a) of this subdivision shall furnish any requested information to 6 the comptroller to complete such analysis. 7 (e) To complete any such analysis, the comptroller may contract with 8 an economic impact firm or may delegate such duty to any instrumentality 9 of the state or municipal corporation which administers the program or 10 project. 11 (f) For the purpose of this subdivision, "economic development" shall 12 mean any project or program for the prosperous development and 13 protection of the legitimate interest and welfare of New York business, 14 industry and commerce, within and outside the state; the expansion and 15 development of markets for New York products; the location and develop- 16 ment of new business in the state as well as the maintenance and expan- 17 sion of existing business; urban renewal as defined in section five 18 hundred two of the general municipal law; creation or expansion of ener- 19 gy infrastructure; creation or expansion of transportation infrastruc- 20 ture; promotion of tourism; promotion of the arts, cultural affairs, or 21 natural heritage; creation or preservation of housing other than routine 22 maintenance; or decarbonization or weatherization of buildings. 23 § 3. The general city law is amended by adding a new article 2-K to 24 read as follows: 25 ARTICLE 2-K 26 RETURN ON INVESTMENT ANALYSIS 27 Section 25-ff. Return on investment analysis. 28 § 25-ff. Return on investment analysis. The comptroller of a city with 29 a population of one million or more shall, every five years, complete an 30 analysis of return on investment, as defined in section one hundred 31 eighty of the tax law, of any credit against a tax imposed by such city, 32 rebate of sales taxes paid, rebate of charges for energy, or discount of 33 charges for energy, provided for in this chapter, unless such analysis 34 is otherwise provided for in statute. 35 § 4. The general municipal law is amended by adding a new section 36 696-g to read as follows: 37 § 696-g. Analysis on return on investment. Each agency shall, in 38 consultation with the state comptroller, conduct an analysis of return 39 on investment, as defined in section one hundred eighty of the tax law, 40 of every existing urban development action area project in its jurisdic- 41 tion no later than five years after the effective date of this section. 42 On and after such date the analysis of any future projects shall be 43 conducted by the state comptroller. 44 § 5. Section 970-f of the general municipal law is amended by adding a 45 new closing paragraph to read as follows: 46 Each redevelopment plan shall include an analysis of return on invest- 47 ment, as such term is defined in section one hundred eighty of the tax 48 law. 49 § 6. Section 22-823 of the administrative code of the city of New York 50 is amended by adding a new subdivision j to read as follows: 51 j. Cost benefit analysis. For each covered contract the city comp- 52 troller shall prepare a cost benefit analysis of such contract no later 53 than two years after its completion, or five years after its execution, 54 whichever comes first. 55 § 7. This act shall take effect on the first of January next succeed- 56 ing the date on which it shall have become a law.