NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5910
SPONSOR: Zebrowski TITLE OF BILL:
An act to amend the general municipal law, in relation to allowing for
the examination of industrial development agencies and not-for-profit
corporations by county comptrollers
PURPOSE:
To allow for independent examination and audit of industrial development
agencies and not-for-profit corporations on the local county level.
SUMMARY OF PROVISIONS:
Section 1 adds a new section to the public authorities law permitting
the county comptroller or local equivalent to examine and audit the
projects and actions of industrial development agencies operating within
a county as well as local not-for-profit corporations.
Section 2 sets the effective date.
JUSTIFICATION:
New York state law authorizes industrial development agencies (IDAs) to
grant incentives, including tax abatements and payments in lieu of taxes
(PILOTs), to businesses and projects to promote job growth and the
vitality of our local economies. The actions taken by IDAs, including
granting PILOTs and tax abatements, and the terms of those incentives,
have substantial impacts on community members, workers, and taxpayers,
yet many of these,actions are veiled from those that are affected.
This bill would add an additional level of accountability by allowing
local audits and examinations of IDA projects and actions by the county
comptroller or local equivalent. Additionally, this bill authorizes the
examination of local not-for-profit corporations such as local develop-
ment corporations. These measures will enhance public confidence in
institutions designed to help people on a local level by ensuring that
the concerns of the public may be brought to the attention of those
entities most closely attuned to local concerns.
LEGISLATIVE HISTORY:
NEW BILL
FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall become
law.
STATE OF NEW YORK
________________________________________________________________________
5910
2023-2024 Regular Sessions
IN ASSEMBLY
March 24, 2023
___________
Introduced by M. of A. ZEBROWSKI -- read once and referred to the
Committee on Local Governments
AN ACT to amend the general municipal law, in relation to allowing for
the examination of industrial development agencies and not-for-profit
corporations by county comptrollers
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The general municipal law is amended by adding a new
2 section 34-b to read as follows:
3 § 34-b. Examination of industrial development agencies and not-for-
4 profit corporations by county comptrollers. 1. Examination of industrial
5 development agency projects and actions by county comptrollers. (a) A
6 county comptroller may conduct an audit of a project and/or action of an
7 industrial development agency located within the county.
8 (b) In counties where there is no county comptroller, the chief
9 elected official of the county shall designate the budget director or
10 finance director to undertake such audits.
11 (c) For purposes of this section, industrial development agencies
12 include such public authorities defined in paragraph (c) of subdivision
13 two of section two of the public authorities law.
14 2. Examination of not-for-profit corporations by county comptrollers.
15 (a) A county comptroller may conduct an audit of a not-for-profit corpo-
16 ration affiliated with, sponsored by, or created by a county, city, town
17 or village government, located within the county.
18 (b) In counties where there is no county comptroller, the chief
19 elected official of the county shall designate the budget director or
20 finance director to undertake such audits.
21 (c) For purposes of this section, not-for-profit corporations include
22 such public authorities defined in paragraph (b) of subdivision two of
23 section two of the public authorities law.
24 § 2. This act shall take effect on the ninetieth day after it shall
25 have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02353-01-3
