NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6687
SPONSOR: Abinanti TITLE OF BILL:
An act to amend the New York state urban development corporation act, in
relation to obligations of members of economic development entities
PURPOSE OR GENERAL IDEA OF BILL:
To increase transparency of the Regional Economic Development Councils
that provide advice or recommendations on the allocation or disbursement
of state or federal moneys and ensure that members of such councils do
not have conflicts of interest related to such advice.
SUMMARY OF PROVISIONS:
Section 1 of the bill amends section 1 of chapter 174 of the laws of
1968, constituting the New York state urban development corporation act,
by adding a new section 32-a to establish special provisions relating to
economic development entities including that:
1. For purposes of this section, an "economic development entity" shall
mean any entity created by the executive branch, and any state agency
whose function includes providing advice, recommendations or determi-
nations to or on behalf of the executive branch or any state agency, on
the allocation or disbursement of state or federal monies or tax credits
and/or benefits.
2. The provisions of article seven of the public officers law applicable
to public bodies and the provisions of article six of the public offi-
cers law applicable to agencies shall apply to an economic development
entity.
3. In addition to the requirements of subdivision 3 of section eighty-
seven of the public officers law, an economic development entity shall
maintain and make available for public inspection and copying any and
all proposals submitted to it through a centralized process.
4. For purposes of public officers law section seventy-three-a, any
member of an economic development entity shall be deemed a state officer
or employee and shall be deemed a policy maker and shall file an annual
statement of financial disclosure set forth in subdivision 3 of public
officers law section seventy-three-a.
Section 2 is the effective date.
JUSTIFICATION:
Public Officers Law § 73-a governs financial disclosure rules for vari-
ous state officers and employees. Articles 6 and 7 of the public offi-
cers govern the freedom of information law rules and open meetings law
rules, respectively.
Currently, Regional Economic Development Councils (REDCs) are not
covered by these laws yet they have significant input into the distrib-
ution of billions of dollars of state funds. Since its inception in
2011, REDCs have been empowered to help direct more than $5.4 billion of
state moneys to community development projects throughout the State. The
2018-19 State budget provides for an eighth round of REDCs awards with
up to $750 million to fund regional priority projects which, once again,
the REDCs will have a significant role in directing. Despite having
influence over billions of dollars of state moneys, members of the REDCs
do not file any financial disclosure statements; most of their meetings
are not open to the public; and they do not make most of their records
available
to the public for inspection and copying. This bill will provide much
needed increased transparency of the REDCs by ensuring its members file
financial disclosure statements as required by other state officers and
employees and are subject to the requirements of the open meetings law
and freedom of information law.
PRIOR LEGISLATIVE HISTORY:
2019-20: A1597 referred to economic development, same as S4290 (Skoufis)
referred to corporations, authorities and commissions; 2018: A10849
referred to economic development
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that those
incumbents who have not filed a disclosure from for the calendar year
2020 shall have thirty days from the effective date of this act to file
such forms with the joint commission on public ethics.
STATE OF NEW YORK
________________________________________________________________________
6687
2021-2022 Regular Sessions
IN ASSEMBLY
March 25, 2021
___________
Introduced by M. of A. ABINANTI -- read once and referred to the Commit-
tee on Economic Development
AN ACT to amend the New York state urban development corporation act, in
relation to obligations of members of economic development entities
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 1 of chapter 174 of the laws of 1968, constituting
2 the New York state urban development corporation act, is amended by
3 adding a new section 32-a to read as follows:
4 § 32-a. Special provisions relating to economic development entities.
5 (1) For the purposes of this section, an "economic development entity"
6 shall mean any entity created by the executive branch, including the
7 executive chamber of the governor and lieutenant governor, and any state
8 agency whose function includes providing advice, recommendations or
9 determinations to or on behalf of the executive branch or any state
10 agency, as defined in paragraph (b) of subdivision one of section seven-
11 ty-three-a of the public officers law, on the allocation or disbursement
12 of state or federal monies or tax credits and/or benefits.
13 (2) (a) The provisions of article seven of the public officers law
14 applicable to public bodies shall apply to an economic development enti-
15 ty.
16 (b) The provisions of article six of the public officers law applica-
17 ble to agencies shall apply to an economic development entity. In addi-
18 tion to the requirements of subdivision three of section eighty-seven of
19 the public officers law, an economic development entity shall maintain
20 and make available for public inspection and copying any and all
21 proposals submitted to it through a centralized application process,
22 including the consolidated funding applications process, except that an
23 economic development entity may redact or withhold portions of a
24 proposal if such portion would be exempt from disclosure pursuant to
25 article six of the public officers law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01013-01-1
A. 6687 2
1 (c) For the purpose of section seventy-three-a of the public officers
2 law, any member of an economic development entity shall be deemed a
3 state officer or employee and shall be deemed a policy maker and shall
4 file an annual statement of financial disclosure set forth in subdivi-
5 sion three of section seventy-three-a of the public officers law.
6 (d) The provisions of section seventy-four of the public officers law
7 applicable to an officer or employee of a state agency shall apply to
8 any member of an economic development entity.
9 § 2. This act shall take effect immediately; provided, however, that
10 those incumbents who have not filed a disclosure form for the calendar
11 year 2020 shall have thirty days from the effective date of this act to
12 file such form with the joint commission on public ethics.
