A07736 Summary:

BILL NOA07736
 
SAME ASSAME AS S03437
 
SPONSORZebrowski
 
COSPNSR
 
MLTSPNSR
 
Amd 4, UDC Act; amd 10, Ec Dev L
 
Establishes a procedure for appointing a president or chairperson upon a vacancy of such position; corrects certain gendered language.
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A07736 Actions:

BILL NOA07736
 
06/06/2023referred to economic development
01/03/2024referred to economic development
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A07736 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7736
 
SPONSOR: Zebrowski
  TITLE OF BILL: An act to amend the New York state urban development corporation act and the economic development law, in relation to establishing a procedure for appointing a president or chairperson upon a vacancy of such posi- tion and correcting certain gendered language   PURPOSE: Establishes a procedure for appointing a president or chairperson upon a vacancy of such position and corrects certain gendered language.   SUMMARY OF PROVISIONS: Section 1: Amends Section 4 of section 1 of chapter 174 of the laws of 1968 by placing a six-month limit on an acting president or acting chair of the ESD board. Requires that the President and Chair be separate offices, that the same person cannot serve in both roles simultaneously, and that board members cannot be appointed president. Requires that President or Chair cannot engage in private employment, or in a profes- sion or business. Also fixes single gender references. Section 2: Amends Section 10 of the economic development law by fixing single gendered references Section 3: Sets effective date.   JUSTIFICATION: Under current NYS statute, an acting president or acting chair of the Empire State Development Board appointed by the governor due to a vacan- cy can stay in the acting role indefinitely. Given that the purpose of the acting position is to be temporary until a full-time successor can be confirmed, presents issues to the process. This bill will fix this issue by placing a six month limit on how long an acting president or acting chair can serve. In addition, adds that the President and Chair are separate offices and that the same individ- ual cannot be actively appointed to both roles.   LEGISLATIVE HISTORY: New Bill.   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: This act shall take effect immediately.
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A07736 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7736
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                      June 6, 2023
                                       ___________
 
        Introduced  by  M.  of  A.  ZEBROWSKI  --  read once and referred to the
          Committee on Economic Development
 
        AN ACT to amend the New York state urban development corporation act and
          the economic development law, in relation to establishing a  procedure
          for appointing a president or chairperson upon a vacancy of such posi-
          tion and correcting certain gendered language
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 4 of section 1 of chapter 174 of the laws of  1968,
     2  constituting  the  New  York  state  urban  development corporation act,
     3  subdivisions 1, 1-a and 3 as amended by chapter 280 of the laws of  1984
     4  and  as  further  amended  by section 104 of part A of chapter 62 of the
     5  laws of 2011, subdivision 2 as amended by chapter  55  of  the  laws  of
     6  1992,  subdivision  3-a  as added by chapter 61 of the laws of 1975, and
     7  subdivisions 7 and 8 as amended by chapter 823 of the laws of  2022,  is
     8  amended to read as follows:
     9    § 4. New York state urban development corporation. (1) There is hereby
    10  created  the  New  York  state urban development corporation. The corpo-
    11  ration shall be a corporate governmental agency of the state, constitut-
    12  ing a political subdivision and public benefit corporation. Its  member-
    13  ship  shall  consist of nine directors as follows: the superintendent of
    14  financial services, the [chairman] chairperson of  the  New  York  state
    15  science  and  technology foundation, and seven directors to be appointed
    16  by the governor with the advice and consent  of  the  senate.  From  the
    17  seven  directors  appointed  by him or her, the governor shall designate
    18  the [chairman] chairperson of the corporation and two others  who  shall
    19  all  serve at the pleasure of the governor. Of the four remaining direc-
    20  tors, one of such directors first appointed by the  governor  after  the
    21  effective  date  of  this  subdivision as amended shall serve for a term
    22  ending January first next succeeding his or her appointment, one of such
    23  directors shall serve for a term ending one year from such date, one  of
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07043-01-3

        A. 7736                             2
 
     1  such  directors  shall serve for a term ending two years from such date,
     2  and one of such directors shall serve for a term ending three years from
     3  such date. Their successors shall serve for terms of  four  years  each.
     4  Directors  shall  continue  in  office  until their successors have been
     5  appointed and qualified. In the event of  a  vacancy  occurring  in  the
     6  office  of  a  director by death, resignation or otherwise, the governor
     7  shall appoint a successor with the advice and consent of the  senate  to
     8  serve  for the balance of the unexpired term. The governor shall appoint
     9  the president of the corporation, with the advice  and  consent  of  the
    10  senate,  who shall be the chief executive officer of the corporation and
    11  who shall serve at the pleasure of the governor. Such president may  not
    12  be  one  of  the  directors appointed by the governor. In the event of a
    13  vacancy occurring in the office of the president or the  chairperson  by
    14  death,  resignation or otherwise, the governor shall appoint a successor
    15  with the advice and consent of the senate to serve for  the  balance  of
    16  the  unexpired  term.  The governor may designate an acting president or
    17  chairperson for a period not to exceed six months or until  a  successor
    18  has been confirmed by the senate, whichever comes first.
    19    (1-a)  The  superintendent  of  financial  services and the [chairman]
    20  chairperson of the New York state science and technology foundation each
    21  may designate a person from his or her department to  represent  him  or
    22  her  at  all meetings of the corporation from which such director may be
    23  absent. Any representative so designated shall have the power to  attend
    24  and to vote at any meeting of the corporation from which the director so
    25  designating  him  or her is absent, with the same force and effect as if
    26  the director designating him or her were present and voting. Such desig-
    27  nation shall be by written notice filed with the [chairman]  chairperson
    28  of  the  corporation  by the director making the designation. The desig-
    29  nation of each such person shall continue until revoked at any  time  by
    30  written  notice to the [chairman] chairperson by the director making the
    31  designation. Such designation shall not limit the power of the  director
    32  making  the  designation  to attend and vote in person at any meeting of
    33  the corporation.
    34    (2) The directors, other than the [chairman] chairperson, shall  serve
    35  without  salary  or other compensation, but each director, including the
    36  [chairman] chairperson, shall be entitled to  reimbursement  for  actual
    37  and  necessary  expenses incurred in the performance of his or her offi-
    38  cial duties. Anything to the contrary contained herein  notwithstanding,
    39  the  president of the corporation[, whether or not he or she is a direc-
    40  tor,] and the [chairman if he or she is not the  president]  chairperson
    41  shall  be entitled to receive such salary as the directors may determine
    42  for their services as chief executive officer and [chairman] chairperson
    43  respectively.
    44    (3)  Such  directors  other  than  the  superintendent  of   financial
    45  services,  the  [chairman] chairperson of the New York state science and
    46  technology foundation, [and any director who serves as president of  the
    47  corporation]  may  engage  in  private employment, or in a profession or
    48  business. The corporation, its directors, officers and  employees  shall
    49  be  subject to the provisions of sections seventy-three and seventy-four
    50  of the public officers law.
    51    (3-a) The state shall save harmless and indemnify any person who shall
    52  have served as a  director,  officer  or  employee  of  the  corporation
    53  against  financial loss or litigation expense arising in connection with
    54  any claim, demand, suit or judgment, or the defense thereof, based on  a
    55  cause  of action, whenever accrued, involving allegations that pecuniary
    56  harm was sustained by any person as a result of any transaction  of  the

        A. 7736                             3
 
     1  corporation  taking place on or after the effective date of the New York
     2  state project finance agency act. In the event any such  claim,  demand,
     3  suit  or  judgment  shall  occur, a director, officer or employee of the
     4  corporation  shall  be saved harmless and indemnified by the state under
     5  this subdivision unless such individual is found  by  a  final  judicial
     6  determination not to have acted in good faith, for a purpose which he or
     7  she  reasonably  believed to be in the best interests of the corporation
     8  or not to have had reasonable cause to believe that his or  her  conduct
     9  was  lawful.  In any suit described in the first sentence of this subdi-
    10  vision, any director, officer or employee made a party defendant to such
    11  suit shall be entitled to be represented by private counsel  of  his  or
    12  her  choice; provided, however, that the attorney general is authorized,
    13  as a condition to indemnification of  the  fees  and  expenses  of  such
    14  representation,  to  require that appropriate groups of such individuals
    15  be represented by the same counsel; and provided further, that with  the
    16  approval  of the attorney general or of a court (obtained by application
    17  substantially as provided in section seven hundred  twenty-five  of  the
    18  business  corporation  law),  indemnification for such fees and expenses
    19  shall be paid from time to time during the pendency of  such  suit.  The
    20  provisions  of  this  subdivision  shall be in addition to and shall not
    21  supplant any indemnification or other benefits heretofore  or  hereafter
    22  conferred  upon  directors, officers and employees of the corporation by
    23  section seventeen of the public officers law, by action  of  the  corpo-
    24  ration,  or  otherwise.  The  provisions of this subdivision shall inure
    25  only to directors, officers and employees of the corporation, shall  not
    26  enlarge or diminish the rights of any other party, and shall not impair,
    27  limit  or  modify  the  rights  and obligations of any insurer under any
    28  policy of insurance.
    29    (4) The directors of the corporation shall serve ex officio as  direc-
    30  tors  of the corporation for urban development and research of New York,
    31  created by the New York state urban development and research corporation
    32  act, and of the urban development guarantee fund of New York, created by
    33  the urban development guarantee fund of New  York  act.  The  [chairman]
    34  chairperson  of the corporation shall serve as [chairman] chairperson of
    35  the corporation for urban development and research of New  York  and  of
    36  the urban development guarantee fund of New York.
    37    (5)  Notwithstanding  any  inconsistent  provisions  of  law, general,
    38  special or local, no officer or employee of the state or  of  any  civil
    39  division thereof, shall be deemed to have forfeited or shall forfeit his
    40  or  her  office  or  employment  by  reason  of his or her acceptance of
    41  membership on the corporation created by this section; provided,  howev-
    42  er,  a  director  who holds such other public office or employment shall
    43  receive no additional compensation or allowance  for  services  rendered
    44  pursuant  to this act, but shall be entitled to reimbursement for his or
    45  her actual and necessary expenses incurred in the  performance  of  such
    46  services.
    47    (6)  The  governor shall appoint a business advisory council for urban
    48  development, to advise and make recommendations to the corporation  with
    49  respect  to  development  policies and programs and to encourage maximum
    50  participation in projects of the corporation by the  private  sector  of
    51  the economy, including members of the council and firms and corporations
    52  with  which  they are [affliated] affiliated. Such council shall consist
    53  of not more than twenty-five members, who shall serve at the pleasure of
    54  the governor, and who shall be broadly representative  of  commerce  and
    55  industry,  the  financial  community  and  the  construction and housing
    56  industries. Such members shall serve without salary, but shall be  enti-

        A. 7736                             4
 
     1  tled  to  reimbursement for their actual and necessary expenses incurred
     2  in the performance of their duties.
     3    (7)  The  corporation  shall  establish one or more community advisory
     4  committees to consider and advise the corporation upon matters submitted
     5  to them by the corporation concerning the development of any area or any
     6  project, and may establish rules and regulations with  respect  to  such
     7  committees.  The corporation or its successor shall publish and maintain
     8  a  list of all community advisory committee members, and community advi-
     9  sory committee meeting agendas, materials, and minutes on  its  website.
    10  Meeting  agendas  and materials shall be posted on such website at least
    11  one business day in advance of community  advisory  committee  meetings.
    12  All upcoming meeting times and locations shall be posted on such website
    13  at  least  one  week in advance.   Community advisory committee meetings
    14  shall be accessible for the public to view and attend live.  The members
    15  of such community advisory committees shall serve, at  the  pleasure  of
    16  the  corporation, without salary, but shall be entitled to reimbursement
    17  for their actual and necessary expenses incurred in the  performance  of
    18  their  duties. Notwithstanding any inconsistent provision of law, gener-
    19  al, special or local, no officer or employee of  the  state  or  of  any
    20  civil  division  thereof,  shall  be  deemed  to have forfeited or shall
    21  forfeit his or her office or employment by reason of his or her  accept-
    22  ance of membership on such community advisory committee.
    23    (8)  The  governor may remove any director appointed by him or her for
    24  inefficiency, neglect of duty or misconduct in office after  giving  him
    25  or  her  a copy of the charges against him or her, and an opportunity to
    26  be heard, in person or by counsel, in his or her defense, upon not  less
    27  than ten days' notice. If any such director shall be removed, the gover-
    28  nor  shall  file  in  the  office  of the department of state a complete
    29  statement of charges made against such director and his or her  findings
    30  thereon,  together with a complete record of the proceeding. The forego-
    31  ing provisions shall not apply in the case of the  chairperson  and  any
    32  other director who serves at the pleasure of the governor.
    33    (9)  The  corporation and its corporate existence shall continue until
    34  terminated by law, provided, however, that no such law shall take effect
    35  so long as the corporation shall have bonds, notes and other obligations
    36  outstanding, unless adequate provision has been  made  for  the  payment
    37  thereof  in  the  documents  securing  the same. Upon termination of the
    38  existence of the corporation, all its rights and properties  shall  pass
    39  to and be vested in the state.
    40    (10)  A  majority  of  the directors of the corporation then in office
    41  shall constitute a quorum for the transaction of  any  business  or  the
    42  exercise  of  any power or function of the corporation, except as other-
    43  wise provided in subdivision two of section sixteen[,  subdivision  two,
    44  hereof]  of this act. The corporation may delegate to one or more of its
    45  directors, or its officers, agents and employees, such powers and duties
    46  as it may deem proper.
    47    (11) The corporation shall take affirmative  action  in  working  with
    48  construction  firms,  contractors  and  subcontractors, labor unions and
    49  manufacturing and industrial firms, to the end that residents  of  areas
    50  in  which  projects are to be located shall be afforded participation in
    51  the construction work on projects of the corporation, and in  the  busi-
    52  ness  operations  of tenants and occupants of industrial projects under-
    53  taken by the corporation.
    54    § 2. Section 10 of the economic development law, as amended by chapter
    55  839 of the laws of 1987, is amended to read as follows:

        A. 7736                             5
 
     1    § 10. Department of economic development; commissioner. There shall be
     2  in the state government a department of economic development.  The  head
     3  of  the department shall be the commissioner of economic development who
     4  shall be appointed by the governor, by and with the advice  and  consent
     5  of the senate, and hold office until the end of the term of the governor
     6  by  whom  he  or  she  was  appointed  and until his or her successor is
     7  appointed and has qualified. The  principal  office  of  the  department
     8  shall  be in the city of Albany. Regional offices may be established and
     9  maintained by the department in such  places  as  the  commissioner  may
    10  determine  and for which appropriations are made by the legislature. The
    11  commissioner may, with the commissioners of general services,  transpor-
    12  tation  and  labor,  develop  and  institute a procedure for the uniform
    13  collection of employment and economic data within the state for  use  in
    14  connection with the scheduling of public works projects.
    15    § 3. This act shall take effect immediately.
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A07736 LFIN:

 NO LFIN
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