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flects both the national economic recession and some unique regional developments, particularly the restructuring of the financial services industry. Since 1989, the state's unemployment rate has risen from 5.1 percent to over eight percent, with over three hundred sixty thousand persons added to the official jobless counts. Were it not for the fact that the labor force has declined by about one hundred thousand over this period, the unemployment rate would be even higher.
The impact of this recession has touched virtually every sector of the economy. Among the businesses that have been most vulnerable are those owned and operated by women and minorities. These are much smaller, on average, than other businesses and have less access to the capital resources needed to withstand major economic downturns. The long-term attrition of manufacturing has accelerated with the loss of one hundred thirty-two thousand jobs from 1989 to 1991, a twelve percent decline in just two years. In 1991, New York's tourism industry experienced its worst decline in three decades. Employment in travel-and-tourism related businesses lost fifty-four thousand positions or one out of every six jobs lost in the state. In the last two years, the construction industry has experienced, a severe slump in activity. This has resulted in loss of sixty-one thousand seven hundred jobs, eighteen percent of the 1989 total, with a concurrent loss of apprenticeship training opportunities. Over this same period, the value of contracts for infrastructure projects has fallen by twenty-four percent. The recession has significantly inhibited the state's ability to maintain, develop and upgrade the infrastructure upon which a strong and dynamic economy depends.
It is further found and declared that the inability to maintain, develop and upgrade the infrastructure on which the economy depends is a matter of overriding state concern because it seriously threatens the present and future economic vitality of the state and of its local governments. Without adequate infrastructure to support economic activity, a myriad of interrelated social and economic problems, such as unemployment, underemployment, crime, drug abuse, homelessness and inadequate health care, become aggravated and overburden state and local governments. All of these factors combine to perpetuate stagnation and decline. Without infrastructure to support businesses which are located in the state and businesses which may seek to relocate to the state, the problems of unemployment, stagnation and decay will worsen. Active tervention by the public sector is necessary to break this cycle.
It is further found and declared to be the policy of this state to fund investment in infrastructure that provides the foundation for attracting, retaining and expanding businesses and the jobs they provide. Such funding will generate employment in the short-term and, through the construction of capital projects, will foster long-term job creation from the new and regenerated industries that will help ensure New York's economic future.
It is further found and declared that state assistance in the financing of basic infrastructure improvements necessary to support economic activity resulting in the retention and creation of permanent private sector jobs is a primary objective of the state's overall plan and strategy for preserving and capturing economic opportunities and jobs in partnership with regions, counties and localities, as embodied in the omnibus economic development act of 1987 and other laws, and that such assistance is, therefore, a valid state purpose.
It is further found and declared to be the policy of this state to arrest the spread of deterioration and blight by promoting the economic and physical development of substandard and insanitary areas and areas in danger of becoming substandard and insanitary through investment infrastructure so that businesses can remain and grow in those areas and so that new businesses and the jobs they bring can be attracted to those
It is further found and declared to be the policy of this state, where appropriate, to make available for redevelopment for productive economic use, property owned by the state that is surplus to its needs or which is underutilized.
§ 2. The economic development law is amended by adding a new article 15 to read as follows:
EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law
IMPLEMENTATION OF THE JOBS FOR THE NEW, NEW YORK BOND ACT
Creation of program.
Powers and duties of the commissioner.
Public authorities control board.
Expenditure of moneys.
Infrastructure project eligibility. 309-a. Task force.
Project evaluation criteria.
Eligible and ineligible costs.
§ 300. Definitions. As used in this article the following terms shall mean and include:
1. "Applicant" means a municipality, an industrial development agency, an Indian nation or government, a public benefit corporation, department of transportation, or any combination thereof;
2. "Bond act" means the jobs for the new, New York bond act; 3. "Bonds" means bonds and/or notes issued pursuant to the bond act; 4. "Highly distressed area" means: (a) a census tract or tracts or block numbering area or areas or such census tract or block numbering area contiguous thereto which according to the most recent census data available, has:
(i) a poverty rate of at least twenty percent for the year to which the data relates or at least twenty percent of the 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;
(c) an area which was designated an economic development zone pursuant to article eighteen-b of the general municipal law;
5. "Infrastructure project" means capital improvements to publiclyowned real property involving site clearance or preparation or the demolition, construction or reconstruction of basic utilities, systems or facilities, which, while not used directly for the production of goods or services, are required as the foundation for or to promote, stimulate or support economic activity resulting in the retention or creation of permanent private-sector jobs;
6. "Minority business enterprise" means any business enterprise which is at least fifty-one percent owned by, or in the case of a publicly Owned business at least fifty-one percent of the stock of which is owned by, citizens or permanent resident aliens who are Black, Hispanic, Asian or American Indian, Pacific Islander or Alaskan Native where such ownership interest is real, substantial and continuing and where such persons have the authority to independently control the day-to-day business decisions of the entity;
7. "Municipality" means any county, city, village, or town of the
ate Program" means the state infrastructure program;
9. "Retail business" means a facility where fifty percent or more of gross sales is or will be derived from retail sales, except that a reational, educational, cultural or historical tourism destination facility shall not be considered a retail business;
10. "Retail sale" means the sale of:
(a) commodities or goods in small quantities to the ultimate consumer for personal or household consumption, or
(b) a service rendered at a facility personally by an individual for another individual, directly, without the intervention of a third party;
11. "Tourism destination" means a facility or location that is likely to attract a significant number of visitors from outside the vicinity in which it is located; and
12. "Women-owned business enterprise" means any business enterprise which is at least fifty-one percent owned by, or in the case of a publicly owned business at least fifty-one percent of the stock of which is owned by, citizens or permanent resident aliens who are women where such ownership interest is real, substantial and continuing and where such persons have the authority to independently control the day-to-day business decisions of the entity.
§ 301. Creation of program. There is hereby established a state program for the purpose of providing payment of the state share of the cost of infrastructure projects. The program shall be funded with the proceeds of the bonds.
§ 302. Powers and duties of the commissioner. In administering the provisions of this article, the commissioner:
1. Shall make an itemized estimate of funds or appropriations requested annually for inclusion in the executive budget;
2. Shall, not later than September first, nineteen hundred ninety-two, distribute project eligibility guidelines to potential applicants. Such guidelines shall describe infrastructure project application procedures and review processes;
3. Shall, not later than September fifteenth, nineteen hundred ninetytwo, solicit and commence accepting proposals for infrastructure projects from elected officials of municipalities and from other prospective applicants and refer all such proposals to the task force created pursuant to section three hundred nine-a of this article, with copies to the director of the budget, the chair of the senate finance committee, and the chair of the assembly ways and means committee. The commissioner shall utilize all available resources in furtherance of the foregoing; 4. Shall review infrastructure project proposals received by the commissioner pursuant to subdivision three of this section or referred the commissioner by the task force created pursuant to section three hundred nine-a of this article and forward to the task force an opinion for each such proposed project as to the proposed project's eligibility for funding pursuant to this article. Copies of each such opinion shall be furnished to the director of the budget, the chair of the senate finance committee, and the chair of the assembly ways and means committee;
5. May, in the name of the state, as further provided within this article, contract to make, within the limitations of appropriations available therefor, payments of the state share of the cost of an infrastructure project approved and to be undertaken pursuant to this article. Such contracts shall provide that the requirements of article fifteen-A of the executive law, the requirements of sections one hundred three and one hundred four-b of the general municipal law or the compet itive bidding requirements of the state finance law or any other applicable law, and, notwithstanding the public work status of an infrastructure project, provisions for the payment of prevailing rate of wage and supplements as determined and enforced pursuant to article eight of the labor law, shall be applicable to all contracts for work on infrastructure projects which are funded in whole or in part by the proceeds of the bonds. Such contracts made by the commissioner shall be subject to approval by the state comptroller, and shall include provisions permitting the commissioner to terminate the contract if. after eighteen months, (i) on site labor has not commenced; or (ii) the project applicant cannot show that actions precedent to on-site labor are underway. In the event of such termination, except as provided in section three hundred eight of this article, any portion of the state share for such project which is remaining shall be reallotted in the same manner as originally allotted;
6. Shall approve vouchers for payments pursuant to an approved contract. All such payments shall be paid on the audit and warrant of the state comptroller;
7. May, in the name of the state, contract with a public benefit corporation or a municipality to act as the agent of the state to administer an approved infrastructure project;
8. Shall, pursuant to the state administrative procedure act, promulgate rules and regulations for the implementation and administration of EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law
this article, including rules and regulations providing for the payment of fees by sponsors of approved infrastructure projects to defray the costs of project administration. Such fees shall not exceed threefourths of one percent of the state share of the cost of an infrastructure project or fifty thousand dollars, whichever is less; and
9. May perform such other and further acts as may be necessary and proper to carry out the provisions of this article.
§303. Powers and duties of a municipality. A municipality shall have the power and authority to:
1. Enter into contracts with respect to and undertake infrastructure projects; and
2. Perform such other and further acts as may be necessary and proper to carry out an infrastructure project or obligation, duty or function related thereto.
§ 304. Compliance with other laws. (a) Every recipient of funds to be made available pursuant to this article shall comply with all applicable state, federal and local laws.
(b) The provisions of section one hundred ninety-seven-c and one hundred ninety-seven-d of the New York city charter shall apply to infrastructure projects undertaken within the city of New York.
§ 305. Public authorities control board. Notwithstanding any inconsistent provisions of any general or special law, a public benefit corporation may make a commitment, enter into an agreement, and incur indebtedness for the purpose of acquiring, constructing or financing infrastructure projects authorized pursuant to this article without the approval of the public authorities control board; provided, however, that such approval shall be required for any such project, to the extent that such project is funded by sources other than the bonds, the nature of which would otherwise require public authorities control board approval.
§ 306. Reports. The commissioner shall report on July first, nineteen hundred ninety-three, and annually thereafter, to the governor, the temporary president of the senate, the minority leader of the senate, the speaker of the assembly, and the minority leader of the assembly on the status of proposed and approved infrastructure projects.
§ 307. Expenditure of moneys. The moneys received by the state from the sale of bonds and/or notes pursuant to jobs for the new, New York bond act shall be expended pursuant to annual appropriations for infrastructure projects as defined in this article.
§ 308. Distribution. (a) Of the funds made available for the purposes of this article, one hundred million dollars shall be allotted by the commissioner for infrastructure projects to be undertaken throughout the state which projects may not have been included within the memorandum of understanding to be entered into pursuant to the chapter of the laws of nineteen hundred ninety-two which added this article; (b) one hundred million dollars shall be allotted for other infrastructure projects to be undertaken throughout the state; and (c) the remaining aggregate value of infrastructure projects shall be divided among the counties of the state in proportion to each county's population expressed as a percentage of the total population of the state, both for the most recent year for which such data are available, provided however, that each county shall receive not less than two million dollars pursuant to this subdivision. Counties located within a city with a population in of one million shall be treated, for purposes of this section, as separate counties and shall be entitled to funding for infrastructure projects within each such county in the amount of the resulting separate allotments. Any funds allotted to a county pursuant to this subdivision, that remain uncommitted on January first, nineteen hundred ninety-five shall be recaptured and allotted to other infrastructure projects throughout the state, provided, however, that the commissioner may for good cause, in the commissioner's discretion, extend the period within which a county must commit its allotted funds. Notice of any such extension shall be furnished by the commissioner to the members of and representatives to the task force created pursuant to section three hundred nine-a of this article.
§ 309. Infrastructure project eligibility. 1. An infrastructure project shall be considered eligible for state bond funding pursuant to this article if:
(a) (i) it is an infrastructure project related to economic development activities for which firm commitments have been obtained and that will result in the retention or, within a reasonable period of time, the creation of permanent, private-sector jobs; or
(b) the applicant has obtained sufficient public or private commitEX ments which, when combined with the state share of the cost of the infrastructure project, will be sufficient to carry out or finance the proposed infrastructure project; and
(c) on-site labor on the proposed infrastructure project will commence within eighteen months of approval of the application.
2. Notwithstanding the provisions of subdivision one of this section, no proposed infrastructure project shall be eligible for the program if: (a) the proposed infrastructure project relates primarily to a retail business, except that the proposed infrastructure project shall be eligible if it relates to multiple retail businesses and will not have an adverse effect on businesses in surrounding areas;
(ii) there is demonstrable evidence that there is a plan to market the site to which the infrastructure project is related or a reasonable likelihood that the infrastructure project will promote, stimulate or support economic activity resulting in the retention or, within a reasonable period of time, the creation of permanent, private-sector jobs; and
(b) the proposed infrastructure project involves debt refinancing; (c) the proposed infrastructure project involves the relocation of a business from one municipality to another municipality, provided, howthat such an infrastructure project shall not be ineligible under this provision if the governing body of each municipality from which such business is relocating fails to object, in writing, within twenty days of its receipt of written notification by the commissioner that the proposed infrastructure project application has been received; or
(d) the proposed infrastructure project is disapproved in the manner set forth herein by the chief elected official of the city, town or village in which such project is proposed to be located. If a project is proposed to be located partially in a village and partially in a portion of the town outside such village disapproval shall require the action of the chief elected official of the village and the town. The commissioner shall provide written notification to the appropriate chief elected official of the city, town and/or village that a written application proposing that an infrastructure project be located within such municipality has been received by the department. In order that a disapproval be effective hereunder, the chief elected official must forward in writing to the commissioner by certified mail, return receipt requested, the chief elected official's disapproval within ten days of receipt from the commissioner of the written notification required here inabove.
§ 309-a. Task force. There is hereby created a task force consisting of three members. One member shall be appointed by the governor, one member shall be appointed by the temporary president of the senate, and one member shall be appointed by the speaker of the assembly. In addition, there may be two representatives designated to attend meetings of the task force one of whom shall be appointed by the minority leader of the senate and one of whom shall be appointed by the minority leader of the assembly. The task force shall refer proposals for infrastructure projects received by it to the commissioner, who shall review and opine on such proposals as provided in subdivision four of section three hundred two of this article. The members of the task force shall review the proposals referred by the commissioner pursuant to section three hundred two of this article, as well as any other proposals for infrastructure projects received by the task force, for eligibility pursuant to the provisions of sections three hundred nine and three hundred twelve of this article, to develop recommendations for projects to be considered for inclusion in the memorandum of understanding to be entered into pursuant to the chapter of the laws of nineteen hundred ninety-two which added this article. The task force shall also consider the criteria set forth in section three hundred ten of this article and any other criteria deemed appropriate.
$310. Project evaluation criteria. 1. In evaluating projects, the following criteria shall be considered:
(a) The extent to which and the imminence with which the proposed infrastructure project will create or retain permanent private sector jobs;
(b) The impact of the proposed infrastructure project on existing and proposed economic development projects in the vicinity;
EXPLANATION-Matter in italics is new; matter in brackets  is old law