STATE OF NEW YORK
________________________________________________________________________
6144--A
2011-2012 Regular Sessions
IN ASSEMBLY
March 8, 2011
___________
Introduced by M. of A. BRENNAN -- Multi-Sponsored by -- M. of A. JACOBS
-- read once and referred to the Committee on Corporations, Authori-
ties and Commissions -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the public authorities law, the general municipal law
and the not-for-profit corporation law, in relation to the powers,
duties and activities of the authority budget office and to clarify
entities subject to the authority of that office; and to repeal subdi-
vision 3 of section 2801 and section 2806 of the public authorities
law relating thereto
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 2 of section 2 of the public authorities law,
2 as added by chapter 766 of the laws of 2005, is amended to read as
3 follows:
4 2. "local authority" shall mean (a) a public authority or public bene-
5 fit corporation created by or existing under this chapter or any other
6 law of the state of New York whose members do not hold a civil office of
7 the state, are not appointed by the governor or are appointed by the
8 governor specifically upon the recommendation of the local government or
9 governments; (b) a not-for-profit corporation affiliated with, sponsored
10 by, or created by [a] one or more state, county, city, town or village
11 [government] governments or local public authorities; (c) a local indus-
12 trial developmental agency or authority or other local public benefit
13 corporation; [or] (d) a type C not-for-profit corporation, as defined in
14 section two hundred one of the not-for-profit corporation law that (i)
15 supports, manages, markets, funds, or implements programs and projects,
16 or acquires public property in the public interest, for the purpose of
17 promoting or achieving economic or industrial development, job creation,
18 or job retention; (ii) relies in whole or in part on loan repayments or
19 project revenue for its operations; (iii) has the authority to issue tax
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09600-02-1
A. 6144--A 2
1 exempt debt; (iv) approves or makes recommendations for the approval of
2 public financial assistance, including providing loans from a revolving
3 loan fund financed, in whole or in part, by federal, state or local
4 government funds; or (v) relies on state or local government employees
5 or staff of a local authority for administrative or operational support;
6 or (e) an affiliate of such local authority.
7 § 2. Section 5 of the public authorities law, as added by chapter 506
8 of the laws of 2009, is amended to read as follows:
9 § 5. Director of the authorities budget office. The director of the
10 authorities budget office shall be appointed by the governor, upon the
11 advice and consent of the senate. The director shall hold office for a
12 term of four years beginning on the date of confirmation. The salary of
13 the director shall be established by the governor within the limit of
14 funds available therefor; provided, however, such salary shall be no
15 less than the salaries of certain state officers holding the positions
16 indicated in paragraph (d) of subdivision one of section one hundred
17 sixty-nine of the executive law. The director may appoint employees of
18 the authorities budget office and prescribe their powers and duties and
19 fix their compensation within the amounts appropriated therefor. The
20 director may be removed by the governor only after notice and opportu-
21 nity to be heard, and only for:
22 1. permanent disability;
23 2. inefficiency;
24 3. neglect of duty;
25 4. malfeasance;
26 5. a felony or conduct involving moral turpitude; or
27 6. breach of fiduciary duty.
28 § 3. Paragraphs (i) and (j) of subdivision 2 of section 6 of the
29 public authorities law, as added by chapter 506 of the laws of 2009, are
30 amended and three new paragraphs (k), (l) and (m) are added to read as
31 follows:
32 (i) compel any authority which is deemed to be in non-compliance with
33 this title and title one of this article or article nine of this chapter
34 to submit to the authorities budget office a detailed explanation of
35 such failure to comply; [and]
36 (j) commence a special proceeding in supreme court, when it does not
37 receive from a state or local authority upon request information, books,
38 records or other documentation necessary to perform its duties, seeking
39 an order directing the production of the same[.];
40 (k) determine whether entities operating within New York state are
41 state or local authorities as set forth in section two of this article;
42 (l) assess, after notice, fines or other financial penalties on any
43 state or local authority that (i) fails to file any report required by
44 the authorities budget office pursuant to this chapter, on or before the
45 day designated for the filing thereof; (ii) submits inaccurate, incom-
46 plete, or misleading information therein; or (iii) intentionally or
47 unintentionally fails to comply with any requirement or provision of
48 this chapter; provided that the assessment of any fines or financial
49 penalties shall be in accordance with rules or regulations promulgated
50 by the authorities budget office; and further provided that such fines
51 or financial penalties shall be forfeited to the people of the state;
52 and further provided that such fines or financial penalties shall not
53 exceed one hundred dollars for each day during which such report is
54 delayed or withheld, or such inaccurate, incomplete or misleading infor-
55 mation is not corrected, certified and submitted, or such intentional or
56 unintentional acts of noncompliance are not corrected, unless the time
A. 6144--A 3
1 therefore shall have been extended by the director of the authorities
2 budget office for good cause shown, in his or her sole discretion; and
3 (m) review any contract, sub-contract, or financial transaction that
4 is in furtherance of the public purpose or mission of a state or local
5 authority, or for work performed, or services rendered, to or on behalf
6 of one or more county, city, town or village governments or state or
7 local authorities in furtherance of the public purpose or mission of
8 such governments or authorities, and to review documents associated with
9 such contract or financial transaction.
10 § 4. The public authorities law is amended by adding a new section 8
11 to read as follows:
12 § 8. Authorities budget office board of directors. There is hereby
13 created the authorities budget office board of directors which shall
14 consist of five members. One member each shall be appointed by the
15 governor, attorney general, state comptroller, speaker of the assembly
16 and senate majority leader. Each director shall serve for a term of four
17 years. The board shall elect the chairman of the board from its own
18 members. The board shall establish its own bylaws. The functions of the
19 board shall be to:
20 (a) oversee the conduct of the authorities budget office and evaluate
21 whether the authorities budget office is being properly managed and
22 meeting its statutory responsibility to act in an independent and effec-
23 tive manner;
24 (b) instruct, where appropriate, the director and senior officers of
25 the authorities budget office, and review their actions;
26 (c) provide advice and counsel to the director and senior officers;
27 (d) review and approve major policy and administrative decisions
28 respecting the operations and responsibilities of the authorities budget
29 office;
30 (e) review and approve the financial and operating disclosure state-
31 ments, budgetary submissions and reports of the authorities budget
32 office;
33 (f) report at the end of each six month period beginning on June
34 first, two thousand eleven to the governor and the majority and minority
35 leaders of the senate and assembly, on its oversight responsibilities as
36 provided in paragraphs (a) through (e) of this section; and
37 (g) in the event of a vacancy, recommend to the governor a list of
38 three or more candidates for the office of director. The governor shall
39 select his nominee from such list.
40 § 5. Paragraphs (a) and (b) of subdivision 1 and subdivision 2 of
41 section 2800 of the public authorities law, as amended by chapter 506 of
42 the laws of 2009, are amended to read as follows:
43 (a) For the purpose of furnishing the state with systematic informa-
44 tion regarding the status and the activities of public authorities,
45 every state authority continued or created by this chapter or any other
46 chapter of the laws of the state of New York shall submit to the gover-
47 nor, the chairman and ranking minority member of the senate finance
48 committee, the chairman and ranking minority member of the assembly ways
49 and means committee, the state comptroller, and the authorities budget
50 office, within ninety days after the end of its fiscal year, a complete
51 and detailed report or reports setting forth in a manner and form to be
52 determined by the authorities budget office: (1) its operations and
53 accomplishments; (2) its financial reports, including (i) audited finan-
54 cials in accordance with all applicable regulations and following gener-
55 ally accepted accounting principles as defined in subdivision ten of
56 section two of the state finance law, (ii) grant and subsidy programs,
A. 6144--A 4
1 (iii) operating and financial risks, (iv) current ratings, if any, of
2 its bonds issued by recognized municipal bond rating agencies and notice
3 of changes in such ratings, and (v) long-term liabilities, including
4 leases and employee benefit plans; (3) its mission statement and meas-
5 urements including its most recent measurement report; (4) a schedule of
6 its bonds and notes outstanding at the end of its fiscal year, together
7 with a statement of the amounts redeemed and incurred during such fiscal
8 year as part of a schedule of debt issuance that includes the date of
9 issuance, term, amount, interest rate and means of repayment. Addi-
10 tionally, the debt schedule shall also include all refinancings, calls,
11 refundings, defeasements and interest rate exchange or other such agree-
12 ments, and for any debt issued during the reporting year, the schedule
13 shall also include a detailed list of costs of issuance for such debt;
14 (5) a compensation schedule, [in addition to the report described in
15 section twenty-eight hundred six of this title,] that shall include, by
16 position, title and name of the person holding such position or title,
17 the salary, compensation, and allowance [and/or] paid to such person,
18 and benefits provided to any officer, director or employee in a decision
19 making or managerial position of such authority whose salary is in
20 excess of one hundred thousand dollars; [(5-a) biographical information,
21 not including confidential personal information, for all directors and
22 officers and employees for whom salary reporting is required under
23 subparagraph five of this paragraph;] (6) the projects undertaken by
24 such authority during the past year; (7) a listing and description[, in
25 addition to the report required by paragraph a of subdivision three of
26 section twenty-eight hundred ninety-six of this article] of all real
27 property of such authority having an estimated fair market value in
28 excess of fifteen thousand dollars that the authority acquires or
29 disposes of during such period. The report shall contain the price
30 received or paid by the authority and the name of the purchaser, lessee,
31 lessor or seller for all such property sold, leased or bought by the
32 authority during such period; (8) such authority's code of ethics; (9)
33 an assessment of the effectiveness of its internal control structure and
34 procedures; (10) [a copy of the legislation that forms the statutory
35 basis of the authority; (11) a description of the authority and its
36 board structure, including (i) names of committees and committee
37 members, (ii) lists of board meetings and attendance, (iii) descriptions
38 of major authority units, subsidiaries, and (iv) number of employees;
39 (12) its charter, if any, and by-laws; (13) a listing of material chang-
40 es in operations and programs during the reporting year; (14) at a mini-
41 mum a four-year financial plan, including (i) a current and projected
42 capital budget, and (ii) an operating budget report, including an actual
43 versus estimated budget, with an analysis and measurement of financial
44 and operating performance; (15)] its board performance evaluations;
45 provided, however, that such evaluations shall not be subject to disclo-
46 sure under article six of the public officers law; [(16)] (11) a
47 description of the total amounts of assets, services or both assets and
48 services bought or sold without competitive bidding, including (i) the
49 nature of those assets and services, (ii) the names of the counterpar-
50 ties, and (iii) where the contract price for assets purchased exceeds
51 fair market value, or where the contract price for assets sold is less
52 than fair market value, a detailed explanation of the justification for
53 making the purchase or sale without competitive bidding, and a certif-
54 ication by the chief executive officer and chief financial officer of
55 the public authority that they have reviewed the terms of such purchase
56 or sale and determined that it complies with applicable law and procure-
A. 6144--A 5
1 ment guidelines; and [(17)] (12) a description of any material pending
2 litigation in which the authority is involved as a party during the
3 reporting year, except that no hospital need disclose information about
4 pending malpractice claims beyond the existence of such claims.
5 (b) Each state authority shall make accessible to the public, via its
6 official or shared internet web site, (i) documentation pertaining to
7 its mission[,] and current activities[,]; (ii) its most recent annual
8 report and financial [reports] statements, and current [year] budget
9 [and] reports; (iii) its most recent independent audit report and any
10 other report provided to the authorities budget office unless such
11 information is covered by subdivision two of section eighty-seven of the
12 public officers law; (iv) biographical information, not including confi-
13 dential personal information, pertaining to the professional qualifica-
14 tions and expertise for all directors and officers; (v) a copy of the
15 legislation that forms the statutory basis of the authority; (vi) a
16 description of the authority and its board structure, including (a)
17 names of committees and committee members, (b) minutes of board meet-
18 ings, (c) descriptions of major authority units and subsidiaries, (d)
19 number of employees and staff; (vii) an organization chart; (viii) its
20 charter, if any, and a copy of its current by-laws; (ix) a listing of
21 material changes in operations and programs during the reporting year;
22 and (x) any other information as may be required by the authorities
23 budget office.
24 2. Local authorities. (a) Every local authority[, continued or created
25 by this chapter or any other chapter of the laws of the state of New
26 York] shall submit to the chief executive officer, the chief fiscal
27 officer, the chairperson of the legislative body of the local government
28 or local governments and the authorities budget office, within ninety
29 days after the end of its fiscal year, a complete and detailed report or
30 reports setting forth in a manner and form to be determined by the
31 authorities budget office: (1) its operations and accomplishments; (2)
32 its financial reports, including (i) audited financials in accordance
33 with all applicable regulations and following generally accepted
34 accounting principles as defined in subdivision ten of section two of
35 the state finance law, (ii) grants and subsidy programs, (iii) operating
36 and financial risks, (iv) current ratings if any, of its bonds issued by
37 recognized municipal bond rating agencies and notice of changes in such
38 ratings, and (v) long-term liabilities, including leases and employee
39 benefit plans; (3) its mission statement and measurements including its
40 most recent measurement report; (4) a schedule of its bonds and notes
41 outstanding at the end of its fiscal year, together with a statement of
42 the amounts redeemed and incurred during such fiscal year as part of a
43 schedule of debt issuance that includes the date of issuance, term,
44 amount, interest rate and means of repayment. Additionally, the debt
45 schedule shall also include all refinancings, calls, refundings,
46 defeasements and interest rate exchange or other such agreements, and
47 for any debt issued during the reporting year, the schedule shall also
48 include a detailed list of costs of issuance for such debt; (5) a
49 compensation schedule [in addition to the report described in section
50 twenty-eight hundred six of this title] that shall include, by position,
51 title and name of the person holding such position or title, the salary,
52 compensation, and allowance [and/or] paid to such person, benefits
53 provided to any officer, director or employee in a decision making or
54 managerial position of such authority whose salary is in excess of one
55 hundred thousand dollars; [(5-a) biographical information, not including
56 confidential personal information, for all directors and officers and
A. 6144--A 6
1 employees for whom salary reporting is required under subparagraph five
2 of this paragraph;] (6) the projects undertaken by such authority during
3 the past year; (7) a listing and description[, in addition to the report
4 required by paragraph a of subdivision three of section twenty-eight
5 hundred ninety-six of this article] of all real property of such author-
6 ity having an estimated fair market value in excess of fifteen thousand
7 dollars that the authority acquires or disposes of during such period.
8 The report shall contain the price received or paid by the authority and
9 the name of the purchaser, lessee, lessor or seller for all such proper-
10 ty sold, leased or bought by the authority during such period; (8) such
11 authority's code of ethics; (9) an assessment of the effectiveness of
12 its internal control structure and procedures; (10) [a copy of the
13 legislation that forms the statutory basis of the authority; (11) a
14 description of the authority and its board structure, including (i)
15 names of committees and committee members, (ii) lists of board meetings
16 and attendance, (iii) descriptions of major authority units, subsid-
17 iaries, (iv) number of employees, and (v) organizational chart; (12) its
18 charter, if any, and by-laws; (13) a listing of material changes in
19 operations and programs during the reporting year; (14) at a minimum a
20 four-year financial plan, including (i) a current and projected capital
21 budget, and (ii) an operating budget report, including an actual versus
22 estimated budget, with an analysis and measurement of financial and
23 operating performance; (15)] its board performance evaluations provided,
24 however, that such evaluations shall not be subject to disclosure under
25 article six of the public officers law; [(16)] (11) a description of the
26 total amounts of assets, services or both assets and services bought or
27 sold without competitive bidding, including (i) the nature of those
28 assets and services, (ii) the names of the counterparties, and (iii)
29 where the contract price for assets purchased exceeds fair market value,
30 or where the contract price for assets sold is less than fair market
31 value, a detailed explanation of the justification for making the
32 purchase or sale without competitive bidding, and a certification by the
33 chief executive officer and chief financial officer of the public
34 authority that they have reviewed the terms of such purchase or sale and
35 determined that it complies with applicable law and procurement guide-
36 lines; and [(17)] (12) a description of any material pending litigation
37 in which the authority is involved as a party during the reporting year,
38 except that no provider of medical services need disclose information
39 about pending malpractice claims beyond the existence of such claims.
40 (b) Each local authority shall make accessible to the public, via its
41 official or shared internet web site, (i) documentation pertaining to
42 its mission[,] and current activities[,]; (ii) its most recent annual
43 report and financial [reports] statements, and current [year] budget
44 [and] reports; (iii) its most recent independent audit report and any
45 other report provided to the authorities budget office unless such
46 information is covered by subdivision two of section eighty-seven of the
47 public officers law; (iv) biographical information, not including confi-
48 dential personal information, pertaining to the professional qualifica-
49 tions and expertise for all directors and officers; (v) a copy of the
50 legislation that forms the statutory basis of the authority; (vi) a
51 description of the authority and its board structure, including (a)
52 names of committees and committee members, (b) minutes of board meet-
53 ings, (c) descriptions of major authority units and subsidiaries, (d)
54 number of employees and staff; (vii) an organization chart; (viii) its
55 charter, if any, and a copy of its current by-laws; (ix) a listing of
56 material changes in operations and programs during the reporting year;
A. 6144--A 7
1 and (x) any other information as may be required by the authorities
2 budget office.
3 § 6. Subdivision 3 of section 2801 of the public authorities law is
4 REPEALED and subdivisions 1 and 2, as amended by chapter 506 of the laws
5 of 2009, are amended to read as follows:
6 1. State authorities. Every state authority or commission heretofore
7 or hereafter continued or created by this chapter or any other chapter
8 of the laws of the state of New York shall submit to the governor, the
9 chair and ranking minority member of the senate finance committee, the
10 chair and ranking minority member of the assembly ways and means commit-
11 tee and the authorities budget office, for their information, annually
12 [not more than one hundred twenty days and] not less than [ninety] thir-
13 ty days before the commencement of its fiscal year, in the form [submit-
14 ted to its members or trustees,] determined by the authorities budget
15 office, an adopted budget plan of at least six years and budget informa-
16 tion on operations and capital construction setting forth the estimated
17 receipts and expenditures for the next fiscal year [and], the current
18 fiscal year, and the next three fiscal years, and the actual receipts
19 and expenditures for the last completed fiscal year.
20 2. Local authorities. For the local authority fiscal year ending on or
21 after December thirty-first, two thousand seven and annually thereafter,
22 every local authority [heretofore or hereafter continued or created by
23 this chapter or any other chapter of the laws of the state of New York]
24 shall submit to the chief executive officer, the chief fiscal officer,
25 the chairperson of the legislative body of the local government or
26 governments and the authorities budget office for their information,
27 annually [not more than ninety days and not less than sixty] thirty days
28 before the commencement of its fiscal year, in the form [submitted to
29 its members or trustees,] determined by the authorities budget office,
30 an adopted budget plan of at least six years and budget information on
31 operations and capital construction setting forth the estimated receipts
32 and expenditures for the next fiscal year [and], the current fiscal
33 year, and the next three fiscal years, and the actual receipts and
34 expenditures for the last completed fiscal year.
35 § 7. Subdivisions 2 and 7 of section 2802 of the public authorities
36 law, subdivision 2 as amended by chapter 506 of the laws of 2009 and
37 subdivision 7 as added by chapter 766 of the laws of 2005, are amended
38 to read as follows:
39 2. Local authorities. For the local authority fiscal year ending on or
40 after December thirty-first, two thousand seven and annually thereafter,
41 every local authority [heretofore or hereafter continued or created by
42 this chapter or any other chapter of the laws of the state of New York]
43 shall submit to the chief executive officer, the chief fiscal officer,
44 the chairperson of the legislative body of the local government or local
45 governments and the authorities budget office, together with the report
46 described in section twenty-eight hundred of this title, a copy of the
47 annual independent audit report, performed by a certified public
48 accounting firm in accordance with generally accepted auditing standards
49 as defined in subdivision eleven of section two of the state finance
50 law, and management letter and any other external examination of the
51 books and accounts of such authority other than copies of the reports of
52 any examinations made by the state comptroller.
53 7. Notwithstanding any provision of law to the contrary, a [public]
54 state or local authority may exempt information from disclosure or
55 report, if the counsel of such authority deems that such information is
A. 6144--A 8
1 covered by subdivision two of section eighty-seven of the public offi-
2 cers law.
3 § 8. Section 2806 of the public authorities law is REPEALED.
4 § 9. The opening paragraph of subdivision 2 of section 2825 of the
5 public authorities law, as amended by chapter 174 of the laws of 2010,
6 is amended to read as follows:
7 Except for members who serve as members by virtue of holding a civil
8 office of the state or municipal government, the majority of the remain-
9 ing members of the governing body of every state or local authority
10 shall be independent members; provided, however, that this provision
11 shall apply to appointments made on or after the effective date of chap-
12 ter seven hundred sixty-six of the laws of two thousand five which added
13 this subdivision. The official or officials having the authority to
14 appoint or remove such remaining members shall take such actions as may
15 be necessary to satisfy this requirement and further, shall consider the
16 prospective diversity of the members of a state authority when making
17 their determinations to appoint any member. For the purposes of this
18 section, an independent member is one who:
19 § 10. Subdivisions 1 and 8 of section 2879 of the public authorities
20 law, as amended by chapter 564 of the laws of 1988, paragraph (a) of
21 subdivision 8 as amended and such subdivision as renumbered by chapter
22 844 of the laws of 1992, are amended to read as follows:
23 1. Every [public] state and local authority [and public benefit corpo-
24 ration, a majority of the members of which consist of persons either
25 appointed by the governor or who serve as members by virtue of holding a
26 civil office of the state, or a combination thereof, (such entities to
27 be hereinafter in this section referred to as "corporation")] shall
28 adopt by resolution comprehensive guidelines which detail the corpo-
29 ration's operative policy and instructions regarding the use, awarding,
30 monitoring and reporting of procurement contracts. Guidelines approved
31 by the corporation shall be annually reviewed and approved by the corpo-
32 ration.
33 8. (a) Each [corporation] state and local authority shall [annually]
34 submit within ninety days of the end of its fiscal year its report on
35 procurement contracts to the [division of the budget] authorities budget
36 office and copies thereof to the department of audit and control, the
37 department of economic development, the senate finance committee and the
38 assembly ways and means committee.
39 (b) Each corporation shall make available to the public copies of its
40 report on procurement contracts upon reasonable request therefor.
41 § 11. Section 2827 of the public authorities law, as amended by chap-
42 ter 506 of the laws of 2009, is amended to read as follows:
43 § 2827. Removal of authority members. Except as otherwise provided in
44 this chapter, every member of every authority or commission heretofore
45 or hereafter continued or created by this chapter, except ex-officio
46 members, that is, members whose membership results by virtue of their
47 incumbency of a public office, shall be removable by the public officer
48 or public body which is empowered by this chapter to appoint such
49 authority or commission member, for inefficiency, breach of fiduciary
50 duty, neglect of duty or misconduct in office, provided, however, that
51 such member shall be given a copy of the charges against him and an
52 opportunity of being heard in person, or by counsel, in his or her
53 defense upon not less than ten days' notice. If the authorities budget
54 office recommends to the public officer or public body which is
55 empowered to appoint officers or directors of a state or local authority
56 the suspension or dismissal of such officers or directors, the public
A. 6144--A 9
1 officer or public body shall notify the authorities budget office in
2 writing within thirty days of receiving such a recommendation whether or
3 not such recommendation will be accepted.
4 § 12. Subdivision 3 of section 2896 of the public authorities law, as
5 amended by chapter 506 of the laws of 2009, is amended to read as
6 follows:
7 3. a. Each [public] state and local authority shall [publish, not less
8 frequently than annually] prepare within ninety days of the end of its
9 fiscal year as part of the annual report pursuant to section twenty-
10 eight hundred of this article, a report listing all real property of the
11 public authority. Such report shall include a list and full description
12 of all real and personal property disposed of during such period. The
13 report shall contain the price received by the public authority and the
14 name of the purchaser for all such property sold by the public authority
15 during such period and such other information as required by the author-
16 ities budget office.
17 b. The [public] state or local authority shall deliver copies of such
18 report to the comptroller, the director of the budget, the commissioner
19 of general services, the legislature and the authorities budget office.
20 § 13. Paragraphs (a) and (b) of subdivision 7 of section 2925 of the
21 public authorities law, as added by chapter 838 of the laws of 1983, are
22 amended to read as follows:
23 (a) Each corporation, a majority of the members of which consist of
24 persons appointed by the governor or who serve as members by virtue of
25 holding a civil office of the state, or a combination thereof, shall
26 [annually] submit within ninety days of the end of its fiscal year its
27 investment report to the [division of the budget] authorities budget
28 office and copies thereof to the department of audit and control, the
29 senate finance committee and the assembly ways and means committee.
30 (b) Each corporation, other than a corporation included under para-
31 graph (a) of this subdivision, shall annually submit its investment
32 report to the chief executive officer and chief fiscal officer of each
33 municipality for the benefit of which it was created and to the depart-
34 ment of audit and control and the authorities budget office.
35 § 14. Subdivision 2 of section 561-a of the general municipal law, as
36 added by chapter 681 of the laws of 1963, is amended to read as follows:
37 2. Within [sixty] ninety days after the close of the fiscal year, an
38 agency shall submit an annual report of its financial condition to the
39 commissioner, the authorities budget office and to the state comp-
40 troller. The report shall be in such form as the comptroller shall
41 require. The commissioner or the comptroller or the director of the
42 authorities budget office may require additional information from the
43 agency or any officer thereof at any time.
44 § 15. Section 859 of the general municipal law, as added by chapter
45 692 of the laws of 1989, paragraph (b), the first and second undesig-
46 nated paragraphs and subparagraph (v) of paragraph (e) of subdivision 1
47 as amended by chapter 357 of the laws of 1993, paragraph (e) of subdivi-
48 sion 1 and subdivision 3 as added and subdivision 2 as amended by chap-
49 ter 356 of the laws of 1993 and paragraph (f) of subdivision 1 as added
50 by section 28 of part A-3 of chapter 62 of the laws of 2003, is amended
51 to read as follows:
52 § 859. Financial records. 1. (a) Each agency shall maintain books and
53 records in such form as may be prescribed by the state comptroller.
54 (b) Within ninety days following the close of its fiscal year, each
55 agency or authority shall prepare a financial statement for that fiscal
56 year in such form as may be prescribed by the authorities budget office
A. 6144--A 10
1 and the state comptroller. Such statement shall be audited within such
2 ninety day period by an independent certified public accountant in
3 accordance with government accounting standards established by the
4 United States general accounting office. The audited financial statement
5 shall include supplemental schedules listing all straight-lease trans-
6 actions and bonds and notes issued, outstanding or retired during the
7 applicable accounting period whether or not such bonds, notes or trans-
8 actions are considered obligations of the agency. For each issue of
9 bonds or notes such schedules shall provide the name of each project
10 financed with proceeds of each issue, and whether the project occupant
11 is a not-for-profit corporation, the name and address of each owner of
12 each project, the estimated amount of tax exemptions authorized for each
13 project, the purpose for which each bond or note was issued, date of
14 issue, interest rate at issuance and if variable the range of interest
15 rates applicable, maturity date, federal tax status of each issue, and
16 an estimate of the number of jobs created and retained by each project.
17 For each straight-lease transaction, such schedules shall provide the
18 name of each project, and whether the project occupant is a not-for-pro-
19 fit corporation, the name and address of each owner of each project, the
20 estimated amount of tax exemptions authorized for each project, the
21 purpose for which each transaction was made, the method of financial
22 assistance utilized by the project, other than the tax exemptions
23 claimed by the project and an estimate of the number of jobs created and
24 retained by each project.
25 (c) Within [thirty] ninety days after [completion] the end of the
26 fiscal year, a copy of the audited financial statement shall be trans-
27 mitted to the commissioner of the department of economic development,
28 the authorities budget office, the state comptroller and the governing
29 body of the municipality for whose benefit the agency was created.
30 (d) [An agency with no bonds or notes issued or outstanding and no
31 projects during the applicable accounting period may apply to the state
32 comptroller for a waiver of the required audited financial statement.
33 Application shall be made on such form as the comptroller may prescribe.
34 (e)] If an agency or authority shall fail to file or substantially
35 complete, as determined by the state comptroller, the financial state-
36 ment required by this section, the state comptroller shall provide
37 notice to the agency or authority. The notice shall state the following:
38 (i) that the failure to file a financial statement as required is a
39 violation of this section, or in the case of an insufficient financial
40 statement, the manner in which the financial statement submitted is
41 deficient;
42 (ii) that the agency or authority has thirty days to comply with this
43 section or provide an adequate written explanation to the comptroller of
44 the agency's or authority's reasons for the inability to comply; and
45 (iii) that the agency's or authority's failure to provide either the
46 required financial statement or an adequate explanation will result in
47 the notification of the chief executive officer of the municipality for
48 whose benefit the agency or authority was created of the agency's
49 noncompliance with this section. Where such agency or authority has
50 failed to file the required statement, the comptroller shall addi-
51 tionally notify the agency or authority that continued failure to file
52 the required statement may result in loss of the agency's or authority's
53 authority to provide exemptions from state taxes.
54 (iv) If an agency or authority after thirty days has failed to file
55 the required statement or the explanation in the manner required by
56 subparagraph (i) of this paragraph, or provides an insufficient explana-
A. 6144--A 11
1 tion, the comptroller shall notify the chief executive officer of the
2 municipality for whose benefit the agency or authority was created and
3 the agency of the agency's or authority's noncompliance with this
4 section. Such notice from the state comptroller shall further delineate
5 in what respect the agency or authority has failed to comply with this
6 section. If the agency or authority has failed to file the required
7 statement, the notice shall additionally state that continued failure to
8 file the required statement may result in loss of the agency's or
9 authority's authority to provide exemptions from state taxes.
10 (v) If, thirty days after notification of the chief executive officer
11 of the municipality for whose benefit the agency or authority was
12 created of the agency's or authority's noncompliance, the agency or
13 authority fails to file the required statement, the comptroller shall
14 notify the chief executive officer of the municipality for whose benefit
15 that agency or authority was created and the agency or authority that if
16 such report is not provided within sixty days, that the agency or
17 authority will no longer be authorized to provide exemptions from state
18 taxes.
19 (vi) If, sixty days after the notification required by subparagraph
20 (v) of this paragraph, the comptroller has not received the required
21 statement, the agency or authority shall not offer financial assistance
22 which provides exemptions from state taxes until such financial state-
23 ment is filed and the comptroller shall so notify the agency or authori-
24 ty and the chief executive officer of the municipality for whose benefit
25 the agency was created. Provided, however, that nothing contained in
26 this paragraph shall be deemed to modify the terms of any existing
27 agreements. The comptroller shall provide the authorities budget office
28 with notification that such agency or authority is prohibited from
29 offering financial assistance that provides exemptions from state taxes.
30 [(f)] (e) Within thirty days after completion, a copy of an audited
31 financial statement which contains transactions of or bonds or notes of
32 civic facilities as defined in paragraph (b) of the former subdivision
33 thirteen of section eight hundred fifty-four of this article, shall be
34 transmitted by the agency to the commissioner of health, the chair of
35 the senate finance committee, the chair of the assembly ways and means
36 committee, the chair of the senate health committee and the chair of the
37 assembly health committee.
38 2. On or before September first of each year, the commissioner of the
39 department of economic development shall prepare and submit to the
40 governor, speaker of the assembly, majority leader of the senate, the
41 director of the authorities budget office, and the state comptroller, a
42 report setting forth a summary of the significant trends in operations
43 and financing by agencies and authorities; departures from acceptable
44 practices by agencies and authorities; a compilation by type of the
45 bonds and notes outstanding; a compilation of all outstanding straight-
46 lease transactions; an estimate of the total number of jobs created and
47 retained by agency or authority projects; and any other information
48 which in the opinion of the commissioner bears upon the discharge of the
49 statutory functions of agencies and authorities.
50 3. On or before April first, nineteen hundred ninety-six, the commis-
51 sioner shall submit to the director of the division of the budget, the
52 director of the authorities budget office, the temporary president of
53 the senate, the speaker of the assembly, the chairman of the senate
54 finance committee, the chairman of the assembly ways and means commit-
55 tee, the chairman of the senate local government committee, the chairman
56 of the senate committee on commerce, economic development and small
A. 6144--A 12
1 business, the chairman of the assembly committee on commerce, industry
2 and economic development, the chairman of the assembly local governments
3 committee [and], the chairman of the assembly real property taxation
4 committee, the chair of the senate committee on corporations, authori-
5 ties and commissions, and the chair of the assembly committee on corpo-
6 rations, authorities and commissions an evaluation of the activities of
7 industrial development agencies and authorities in the state prepared by
8 an entity independent of the department. Such evaluation shall identify
9 the effect of agencies and authorities on: (a) job creation and
10 retention in the state, including the types of jobs created and
11 retained; (b) the value of tax exemptions provided by such agencies and
12 authorities; (c) the value of payments received in lieu of taxes
13 received by municipalities and school districts as a result of projects
14 sponsored by such entities; (d) a summary of the types of projects that
15 received financial assistance; (e) a summary of the types of financial
16 assistance provided by the agencies and authorities; (f) a summary of
17 criteria for evaluation of projects used by agencies and authorities;
18 (g) a summary of tax exemption policies of agencies and authorities; and
19 (h) such other factors as may be relevant to an assessment of the
20 performance of such agencies and authorities in creating and retaining
21 job opportunities for residents of the state. Such evaluation shall also
22 assess the process by which agencies and authorities grant exemptions
23 from state taxes and make recommendations for the most efficient and
24 effective procedures for the use of such exemptions. Such evaluation
25 shall further include any recommendations for changes in laws governing
26 the operations of industrial development agencies and authorities which
27 would enhance the creation and retention of jobs in the state.
28 § 16. Paragraph (a) of section 1411 of the not-for-profit corporation
29 law, as amended by chapter 847 of the laws of 1970, is amended to read
30 as follows:
31 (a) Purposes.
32 This section shall provide an additional and alternate method of
33 incorporation or reincorporation of not-for-profit corporations for any
34 of the purposes set forth in this paragraph and shall not be deemed to
35 alter, impair or diminish the purposes, rights, powers or privileges of
36 any corporation heretofore or hereafter incorporated under this section
37 or under the stock or business corporation laws. Corporations may be
38 incorporated or reincorporated under this section as not-for-profit
39 local development corporations operated for the exclusively charitable
40 or public purposes of relieving and reducing unemployment, promoting and
41 providing for additional and maximum employment, bettering and maintain-
42 ing job opportunities, instructing or training individuals to improve or
43 develop their capabilities for such jobs, carrying on scientific
44 research for the purpose of aiding a community or geographical area by
45 attracting new industry to the community or area or by encouraging the
46 development of, or retention of, an industry in the community or area,
47 and lessening the burdens of government and acting in the public inter-
48 est, and any one or more counties, cities, towns or villages of the
49 state, or any combination thereof, or the New York job development
50 authority in exercising its power under the public authorities law to
51 encourage the organization of local development corporations, may cause
52 such corporations to be incorporated by public officers or private indi-
53 viduals or reincorporated upon compliance with the requirements of this
54 section, and it is hereby found, determined and declared that in carry-
55 ing out said purposes and in exercising the powers conferred by para-
56 graph [(b)] (c) of this section such corporations will be performing an
A. 6144--A 13
1 essential governmental function. A local development corporation incor-
2 porated or reincorporated for the purposes of this paragraph that (i)
3 supports, manages, markets, funds, or implements programs and projects,
4 or acquires public property in the public interest, for the purpose of
5 promoting or achieving economic or industrial development, job creation,
6 or job retention; (ii) relies in whole or in part on loan repayments or
7 project revenue for its operations; (iii) has the authority to issue tax
8 exempt debt; (iv) approves or makes recommendations for the approval of
9 public financial assistance, including providing loans from a revolving
10 loan fund financed, in whole or in part, by federal, state or local
11 government funds; (v) relies on state or local government employees or
12 staff of a local authority for administrative or operational support; or
13 (vi) is an affiliate of a local authority shall be defined as a local
14 authority for purposes of complying with the requirements of the public
15 authorities law.
16 § 17. This act shall take effect immediately.
