S. 1537--C 2
board members of authorities are truly independent of any appointing
entity. Board members are required to faithfully obey existing fiduciary
duty to the authority and its purposes.
S 2. Subdivision 4 of section 2 of the public authorities law is
REPEALED and a new subdivision 4 is added to read as follows:
4. "AUTHORITIES BUDGET OFFICE" SHALL MEAN THE ENTITY ESTABLISHED
PURSUANT TO SECTION FOUR OF THIS ARTICLE.
S 3. Subdivision 5 of section 2 of the public authorities law, as
added by chapter 766 of the laws of 2005, is amended to read as follows:
5. "subsidiary" shall not include, for the purposes of this chapter,
corporations that have been certified by the parent corporation to the
[entity created pursuant to section twenty-seven of the chapter of the
laws of two thousand five which added this section] AUTHORITIES BUDGET
OFFICE as being inactive for the past twelve months, having an identical
board of its parent corporation, or not having separate and independent
operational control. Provided, however, the parent corporation, in
response to any request, shall address any provision or provisions of
this chapter.
S 4. Sections 1 and 2 of article 1 of the public authorities law are
designated title 1 and a new title heading is added to read as follows:
SHORT TITLE; DEFINITIONS
S 5. Article 1 of the public authorities law is amended by adding a
new title 2 to read as follows:
TITLE 2
AUTHORITIES BUDGET OFFICE
SECTION 4. ESTABLISHMENT OF THE INDEPENDENT AUTHORITIES BUDGET OFFICE.
5. DIRECTOR OF THE AUTHORITIES BUDGET OFFICE.
6. POWERS AND DUTIES OF THE AUTHORITIES BUDGET OFFICE.
7. REPORTS OF THE AUTHORITIES BUDGET OFFICE.
S 4. ESTABLISHMENT OF THE INDEPENDENT AUTHORITIES BUDGET OFFICE.
THERE IS HEREBY ESTABLISHED THE INDEPENDENT AUTHORITIES BUDGET OFFICE AS
AN INDEPENDENT ENTITY WITHIN THE DEPARTMENT OF STATE, WHICH SHALL HAVE
AND EXERCISE THE POWERS AND DUTIES PROVIDED BY THIS TITLE.
S 5. DIRECTOR OF THE AUTHORITIES BUDGET OFFICE. THE DIRECTOR OF THE
AUTHORITIES BUDGET OFFICE SHALL BE APPOINTED BY THE GOVERNOR, UPON THE
ADVICE AND CONSENT OF THE SENATE. THE DIRECTOR SHALL HOLD OFFICE FOR A
TERM OF FOUR YEARS BEGINNING ON THE DATE OF CONFIRMATION. THE SALARY OF
THE DIRECTOR SHALL BE ESTABLISHED BY THE GOVERNOR WITHIN THE LIMIT OF
FUNDS AVAILABLE THEREFOR; PROVIDED, HOWEVER, SUCH SALARY SHALL BE NO
LESS THAN THE SALARIES OF CERTAIN STATE OFFICERS HOLDING THE POSITIONS
INDICATED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION ONE HUNDRED
SIXTY-NINE OF THE EXECUTIVE LAW. THE DIRECTOR MAY BE REMOVED BY THE
GOVERNOR ONLY AFTER NOTICE AND OPPORTUNITY TO BE HEARD, AND ONLY FOR:
1. PERMANENT DISABILITY;
2. INEFFICIENCY;
3. NEGLECT OF DUTY;
4. MALFEASANCE;
5. A FELONY OR CONDUCT INVOLVING MORAL TURPITUDE; OR
6. BREACH OF FIDUCIARY DUTY.
S 6. POWERS AND DUTIES OF THE AUTHORITIES BUDGET OFFICE. 1. THE
AUTHORITIES BUDGET OFFICE SHALL:
(A) CONDUCT REVIEWS AND ANALYSIS OF THE OPERATIONS, PRACTICES AND
REPORTS OF STATE AND LOCAL AUTHORITIES TO ASSESS COMPLIANCE WITH THE
PROVISIONS OF THIS CHAPTER AND OTHER APPLICABLE PROVISIONS OF LAW;
S. 1537--C 3
(B) MAINTAIN A COMPREHENSIVE INVENTORY OF STATE AND LOCAL AUTHORITIES
AND SUBSIDIARIES AND THE ANNUAL REPORTS OF SUCH STATE AND LOCAL AUTHORI-
TIES AS DEFINED IN SECTION TWENTY-EIGHT HUNDRED OF THIS CHAPTER;
(C) VERIFY THE EXISTENCE OF ALL AUTHORITIES LISTED IN STATE LAW;
(D) REVIEW THE POTENTIAL FOR CONSOLIDATION OR NAME CHANGE OF CERTAIN
AUTHORITIES;
(E) ASSIST STATE AND LOCAL AUTHORITIES IN IMPROVING MANAGEMENT PRAC-
TICES AND THE PROCEDURES BY WHICH THE ACTIVITIES AND FINANCIAL PRACTICES
OF STATE AND LOCAL AUTHORITIES ARE DISCLOSED TO THE PUBLIC;
(F) MAKE RECOMMENDATIONS TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF
THE SENATE, THE SPEAKER OF THE ASSEMBLY AND THE CHAIRS AND RANKING
MINORITY MEMBERS OF THE FOLLOWING COMMITTEES: THE SENATE FINANCE COMMIT-
TEE, THE ASSEMBLY WAYS AND MEANS COMMITTEE, THE SENATE COMMITTEE ON
CORPORATIONS, AUTHORITIES AND COMMISSIONS AND THE ASSEMBLY COMMITTEE ON
CORPORATIONS, AUTHORITIES AND COMMISSIONS AND AUTHORITY BOARD MEMBERS
CONCERNING OPPORTUNITIES TO IMPROVE THE PERFORMANCE, REPORTING, REFORMA-
TION, STRUCTURE AND OVERSIGHT OF STATE AND LOCAL AUTHORITIES;
(G) PROVIDE SUCH ADDITIONAL INFORMATION AND ANALYSIS AS MAY BE REASON-
ABLY REQUESTED BY THE LEGISLATURE AND STATE COMPTROLLER;
(H) PROMULGATE REGULATIONS TO EFFECTUATE THE PURPOSES OF THIS TITLE
AND TITLE ONE OF THIS ARTICLE, AND ARTICLE NINE OF THIS CHAPTER;
(I) DEVELOP AND ISSUE, AFTER CONSULTATION WITH THE OFFICE OF THE
ATTORNEY GENERAL, A WRITTEN ACKNOWLEDGEMENT THAT A BOARD MEMBER MUST
EXECUTE AT THE TIME THAT THE MEMBER TAKES AND SUBSCRIBES THEIR OATH OF
OFFICE, OR WITHIN SIXTY DAYS AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH
IF THE MEMBER HAS ALREADY TAKEN AND SUBSCRIBED THEIR OATH OF OFFICE, IN
WHICH THE BOARD MEMBER ACKNOWLEDGES THAT THEY UNDERSTAND THEIR INDEPEND-
ENCE, INCLUDING THEIR DUTY OF LOYALTY AND CARE TO THE ORGANIZATION AND
COMMITMENT TO THE AUTHORITY'S MISSION;
(J) DEVELOP A COMPREHENSIVE DEFINITION OF PUBLIC AUTHORITIES INCLUDING
A CONSOLIDATED LISTING BY CLASS AND NAME;
(K) STANDARDIZE CONTENT AND FORMAT OF STATE AND LOCAL AUTHORITY ANNUAL
REPORTS;
(L) ASSESS INDIVIDUAL AUTHORITIES AND BASED UPON THEIR ABILITY AND
RESOURCES, SET A DATE BY WHICH CHANGES MADE PURSUANT TO THIS TITLE SHALL
BE IMPLEMENTED;
(M) ISSUE RECOMMENDATIONS TO THE LEGISLATURE AND GOVERNOR ON SETTING
DEBT LIMITATIONS FOR AUTHORITIES WITHOUT STATUTORILY REQUIRED DEBT
LIMITS;
(N) RECOMMEND TO THE LEGISLATURE AND GOVERNOR A COMPENSATION PLAN FOR
BOARDS OF DIRECTORS; AND
(O) REVIEW THE POTENTIAL FOR AND MAKE RECOMMENDATIONS TO THE LEGISLA-
TURE AND GOVERNOR REGARDING CHANGE IN THE TERMS OF OFFICE OF PUBLIC
AUTHORITIES BOARD MEMBERS.
2. THE AUTHORITIES BUDGET OFFICE SHALL HAVE THE AUTHORITY TO:
(A) REQUEST AND RECEIVE FROM ANY STATE OR LOCAL AUTHORITY, AGENCY,
DEPARTMENT OR DIVISION OF THE STATE OR POLITICAL SUBDIVISION SUCH
ASSISTANCE, PERSONNEL, INFORMATION, BOOKS, RECORDS, OTHER DOCUMENTATION
AND COOPERATION AS MAY BE NECESSARY TO PERFORM ITS DUTIES;
(B) ENTER INTO COOPERATIVE AGREEMENTS WITH OTHER GOVERNMENT OFFICES TO
EFFICIENTLY CARRY OUT ITS WORK AND NOT DUPLICATE RESOURCES;
(C) RECEIVE AND ACT UPON COMPLAINTS OR RECOMMENDATIONS FROM THE PUBLIC
OR OTHER PERSONS OR ENTITIES REGARDING ANY AUTHORITY COVERED BY THIS
TITLE;
(D) INITIATE FORMAL INVESTIGATIONS IN RESPONSE TO COMPLAINTS OR
APPEARANCES OF NON-COMPLIANCE BY AN AUTHORITY;
S. 1537--C 4
(E) ISSUE SUBPOENAS FOR THE PURPOSES OF EFFECTUATING THE POWERS AND
DUTIES OF THIS ARTICLE;
(F) PUBLICLY WARN AND CENSURE AUTHORITIES FOR NON-COMPLIANCE WITH THIS
TITLE, AND TO ESTABLISH GUIDELINES FOR SUCH ACTIONS;
(G) RECOMMEND TO THE ENTITY THAT APPOINTED THE OFFICER OR DIRECTOR
SUSPENSION OR DISMISSAL OF OFFICERS OR DIRECTORS;
(H) REPORT CRIMINAL ACTIVITIES TO THE ATTORNEY GENERAL AND OTHER
PROSECUTORIAL AGENCIES;
(I) COMPEL ANY AUTHORITY WHICH IS DEEMED TO BE IN NON-COMPLIANCE WITH
THIS TITLE AND TITLE ONE OF THIS ARTICLE OR ARTICLE NINE OF THIS CHAPTER
TO SUBMIT TO THE AUTHORITIES BUDGET OFFICE A DETAILED EXPLANATION OF
SUCH FAILURE TO COMPLY, PROVIDED THAT WITH SUBMISSION OF SUCH DETAILED
EXPLANATION, THE AUTHORITY SHALL BE CONSIDERED IN COMPLIANCE WITH THIS
TITLE UNLESS AND UNTIL NOTIFIED OTHERWISE BY THE AUTHORITIES BUDGET
OFFICE; AND
(J) COMMENCE A SPECIAL PROCEEDING IN SUPREME COURT, WHEN IT DOES NOT
RECEIVE FROM A STATE OR LOCAL AUTHORITY UPON REQUEST INFORMATION, BOOKS,
RECORDS OR OTHER DOCUMENTATION NECESSARY TO PERFORM ITS DUTIES, SEEKING
AN ORDER DIRECTING THE PRODUCTION OF THE SAME.
3. THE REPORTS AND NON-PROPRIETARY INFORMATION RECEIVED BY AND
PREPARED BY THE AUTHORITIES BUDGET OFFICE SHALL BE MADE AVAILABLE TO THE
PUBLIC, TO THE EXTENT PRACTICABLE, THROUGH THE INTERNET.
S 7. REPORTS OF THE AUTHORITIES BUDGET OFFICE. ON JULY FIRST, TWO
THOUSAND TEN AND ANNUALLY THEREAFTER THE AUTHORITIES BUDGET OFFICE SHALL
ISSUE REPORTS ON ITS FINDINGS AND ANALYSES TO THE GOVERNOR, THE CHAIR
AND RANKING MINORITY MEMBER OF THE SENATE FINANCE COMMITTEE, THE CHAIR
AND RANKING MINORITY MEMBER OF THE ASSEMBLY WAYS AND MEANS COMMITTEE,
THE CHAIR AND RANKING MINORITY MEMBER OF THE SENATE STANDING COMMITTEE
ON CORPORATIONS, AUTHORITIES AND COMMISSIONS, THE CHAIR AND RANKING
MINORITY MEMBER OF THE ASSEMBLY STANDING COMMITTEE ON CORPORATIONS,
AUTHORITIES AND COMMISSIONS, THE STATE COMPTROLLER AND THE ATTORNEY
GENERAL, WITH CONCLUSIONS AND OPINIONS CONCERNING THE PERFORMANCE OF
PUBLIC AUTHORITIES AND TO STUDY, REVIEW AND REPORT ON THE OPERATIONS,
PRACTICES AND FINANCES OF STATE AND LOCAL AUTHORITIES AS DEFINED BY
SECTION TWO OF THIS ARTICLE.
S 6. Subdivisions 1 and 2 of section 2800 of the public authorities
law, subdivision 1 as amended and subdivision 2 as added by chapter 766
of the laws of 2005, are amended to read as follows:
1. State authorities. (a) For the purpose of furnishing the state with
systematic information regarding the status and the activities of public
authorities, every state authority continued or created by this chapter
or any other chapter of the laws of the state of New York shall submit
to the governor, the chairman and ranking minority member of the senate
finance committee, the chairman and ranking minority member of the
assembly ways and means committee [and], the state comptroller, AND THE
AUTHORITIES BUDGET OFFICE, within ninety days after the end of its
fiscal year, a complete and detailed report or reports setting forth:
(1) its operations and accomplishments; (2) its [receipts and disburse-
ments, or revenues and expenses, during such fiscal year in accordance
with the categories or classifications established by such authority for
its own operating and capital outlay purposes] FINANCIAL REPORTS,
INCLUDING (I) AUDITED FINANCIALS IN ACCORDANCE WITH ALL APPLICABLE REGU-
LATIONS AND FOLLOWING GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AS
DEFINED IN SUBDIVISION TEN OF SECTION TWO OF THE STATE FINANCE LAW, (II)
GRANT AND SUBSIDY PROGRAMS, (III) OPERATING AND FINANCIAL RISKS, (IV)
CURRENT RATINGS, IF ANY, OF ITS BONDS ISSUED BY RECOGNIZED MUNICIPAL
S. 1537--C 5
BOND RATING AGENCIES AND NOTICE OF CHANGES IN SUCH RATINGS, AND (V)
LONG-TERM LIABILITIES, INCLUDING LEASES AND EMPLOYEE BENEFIT PLANS; (3)
[its assets and liabilities at the end of its fiscal year including the
status of reserve, depreciation, special or other funds and including
the receipts and payments of these funds] ITS MISSION STATEMENT AND
MEASUREMENTS INCLUDING ITS MOST RECENT MEASUREMENT REPORT; (4) a sched-
ule of its bonds and notes outstanding at the end of its fiscal year,
together with a statement of the amounts redeemed and incurred during
such fiscal year as part of a schedule of debt issuance that includes
the date of issuance, term, amount, interest rate and means of repay-
ment. Additionally, the debt schedule shall also include all refi-
nancings, calls, refundings, defeasements and interest rate exchange or
other such agreements, and for any debt issued during the reporting
year, the schedule shall also include a detailed list of costs of issu-
ance for such debt; (5) a compensation schedule, IN ADDITION TO THE
REPORT DESCRIBED IN SECTION TWENTY-EIGHT HUNDRED SIX OF THIS TITLE, that
shall include, by position, title and name of the person holding such
position or title, the salary, compensation, allowance and/or benefits
provided to any officer, director or employee in a decision making or
managerial position of such authority whose salary is in excess of one
hundred thousand dollars; (5-A) BIOGRAPHICAL INFORMATION, NOT INCLUDING
CONFIDENTIAL PERSONAL INFORMATION, FOR ALL DIRECTORS AND OFFICERS AND
EMPLOYEES FOR WHOM SALARY REPORTING IS REQUIRED UNDER SUBPARAGRAPH FIVE
OF THIS PARAGRAPH; (6) the projects undertaken by such authority during
the past year; (7) a listing AND DESCRIPTION, IN ADDITION TO THE REPORT
REQUIRED BY PARAGRAPH A OF SUBDIVISION THREE OF SECTION TWENTY-EIGHT
HUNDRED NINETY-SIX OF THIS ARTICLE of [(i)] all real property of such
authority having an estimated fair market value in excess of fifteen
thousand dollars that the authority [intends to dispose of; (ii) all
such property held by the authority at the end of the period covered by
the report; and (iii) all such property disposed] ACQUIRES OR DISPOSES
of during such period. The report shall contain [an estimate of fair
market value for all such property held by the authority at the end of
the period and] the price received OR PAID by the authority and the name
of the purchaser OR SELLER for all such property sold OR BOUGHT by the
authority during such period; (8) such authority's code of ethics; [and]
(9) an assessment of the effectiveness of its internal control structure
and procedures; (10) A COPY OF THE LEGISLATION THAT FORMS THE STATUTORY
BASIS OF THE AUTHORITY; (11) A DESCRIPTION OF THE AUTHORITY AND ITS
BOARD STRUCTURE, INCLUDING (I) NAMES OF COMMITTEES AND COMMITTEE
MEMBERS, (II) LISTS OF BOARD MEETINGS AND ATTENDANCE, (III) DESCRIPTIONS
OF MAJOR AUTHORITY UNITS, SUBSIDIARIES, AND (IV) NUMBER OF EMPLOYEES;
(12) ITS CHARTER, IF ANY, AND BY-LAWS; (13) A LISTING OF MATERIAL CHANG-
ES IN OPERATIONS AND PROGRAMS DURING THE REPORTING YEAR; (14) AT A MINI-
MUM A FOUR-YEAR FINANCIAL PLAN, INCLUDING (I) A CURRENT AND PROJECTED
CAPITAL BUDGET, AND (II) AN OPERATING BUDGET REPORT, INCLUDING AN ACTUAL
VERSUS ESTIMATED BUDGET, WITH AN ANALYSIS AND MEASUREMENT OF FINANCIAL
AND OPERATING PERFORMANCE; (15) ITS BOARD PERFORMANCE EVALUATIONS;
PROVIDED, HOWEVER, THAT SUCH EVALUATIONS SHALL NOT BE SUBJECT TO DISCLO-
SURE UNDER ARTICLE SIX OF THE PUBLIC OFFICERS LAW; (16) A DESCRIPTION OF
THE TOTAL AMOUNTS OF ASSETS AND/OR SERVICES BOUGHT OR SOLD WITHOUT
COMPETITIVE BIDDING, INCLUDING (I) THE NATURE OF THOSE ASSETS AND
SERVICES, (II) THE NAMES OF THE COUNTERPARTIES, AND (III) WHERE THE
CONTRACT PRICE OR FAIR MARKET VALUE FOR GOODS PURCHASED EXCEEDS A FAIR
MARKET VALUE DETERMINED BY THE AUTHORITIES BUDGET OFFICE, OR WHERE THE
CONTRACT PRICE FOR GOODS SOLD IS LESS THAN A FAIR MARKET VALUE, AN
S. 1537--C 6
ATTESTATION OF THE FAIR MARKET VALUE AND A DETAILED EXPLANATION EXECUTED
UNDER PENALTIES OF PERJURY BY THE CHIEF EXECUTIVE OFFICER AND CHIEF
FINANCIAL OFFICER OF THE REASONS FOR THE HIGH PRICE PURCHASE OR THE LOAN
PRICE SALE INCLUDING THE RELATIONSHIP, IF ANY, OF PERSONS ASSOCIATED
WITH THE BUYER/PURCHASER AND PERSONS ASSOCIATED WITH THE AUTHORITY
AND/OR THE OFFICIALS WHO APPOINTED MEMBERS TO THE AUTHORITY BOARD; AND
(17) A DESCRIPTION OF ANY MATERIAL PENDING LITIGATION IN WHICH THE
AUTHORITY IS INVOLVED AS A PARTY DURING THE REPORTING YEAR.
(b) [To the extent practicable, each] EACH state authority shall make
accessible to the public, via its official OR SHARED internet web site,
documentation pertaining to its mission, current activities, most recent
annual financial reports, current year budget and its most recent inde-
pendent audit report unless such information is covered by subdivision
two of section eighty-seven of the public officers law.
(C) THE AUTHORITIES BUDGET OFFICE SHALL MAKE ACCESSIBLE TO THE PUBLIC,
VIA ITS OFFICIAL OR SHARED INTERNET WEB SITE, DOCUMENTATION PERTAINING
TO ITS MISSION, CURRENT ACTIVITIES, MOST RECENT ANNUAL FINANCIAL
REPORTS, CURRENT YEAR BUDGET AND ITS MOST RECENT INDEPENDENT AUDIT
REPORT UNLESS SUCH INFORMATION IS COVERED BY SUBDIVISION TWO OF SECTION
EIGHTY-SEVEN OF THE PUBLIC OFFICERS LAW.
2. Local authorities. (a) Every local authority, continued or created
by this chapter or any other chapter of the laws of the state of New
York shall submit to the chief executive officer, the chief fiscal offi-
cer, the chairperson of the legislative body of the local government or
local governments and the [entity established pursuant to section twen-
ty-seven of the chapter of the laws of two thousand five which added
this subdivision] AUTHORITIES BUDGET OFFICE, within ninety days after
the end of its fiscal year, a complete and detailed report or reports
setting forth: (1) its operations and accomplishments; (2) [its receipts
and disbursements, or revenues and expenses, during such fiscal year in
accordance with the categories or classifications established by such
authority for its own operating and capital outlay purposes] ITS FINAN-
CIAL REPORTS, INCLUDING (I) AUDITED FINANCIALS IN ACCORDANCE WITH ALL
APPLICABLE REGULATIONS AND FOLLOWING GENERALLY ACCEPTED ACCOUNTING PRIN-
CIPLES AS DEFINED IN SUBDIVISION TEN OF SECTION TWO OF THE STATE FINANCE
LAW, (II) GRANT AND SUBSIDY PROGRAMS, (III) OPERATING AND FINANCIAL
RISKS, (IV) CURRENT RATINGS IF ANY, OF ITS BONDS ISSUED BY RECOGNIZED
MUNICIPAL BOND RATING AGENCIES AND NOTICE OF CHANGES IN SUCH RATINGS,
AND (V) LONG-TERM LIABILITIES, INCLUDING LEASES AND EMPLOYEE BENEFIT
PLANS; (3) [its assets and liabilities at the end of its fiscal year
including the status of reserve, depreciation, special or other funds
and including the receipts and payments of these funds] ITS MISSION
STATEMENT AND MEASUREMENTS INCLUDING ITS MOST RECENT MEASUREMENT REPORT;
(4) a schedule of its bonds and notes outstanding at the end of its
fiscal year, together with a statement of the amounts redeemed and
incurred during such fiscal year as part of a schedule of debt issuance
that includes the date of issuance, term, amount, interest rate and
means of repayment. Additionally, the debt schedule shall also include
all refinancings, calls, refundings, defeasements and interest rate
exchange or other such agreements, and for any debt issued during the
reporting year, the schedule shall also include a detailed list of costs
of issuance for such debt; (5) a compensation schedule IN ADDITION TO
THE REPORT DESCRIBED IN SECTION TWENTY-EIGHT HUNDRED SIX OF THIS TITLE
that shall include, by position, title and name of the person holding
such position or title, the salary, compensation, allowance and/or bene-
fits provided to any officer, director or employee in a decision making
S. 1537--C 7
or managerial position of such authority whose salary is in excess of
one hundred thousand dollars; (5-A) BIOGRAPHICAL INFORMATION, NOT
INCLUDING CONFIDENTIAL PERSONAL INFORMATION, FOR ALL DIRECTORS AND OFFI-
CERS AND EMPLOYEES FOR WHOM SALARY REPORTING IS REQUIRED UNDER SUBPARA-
GRAPH FIVE OF THIS PARAGRAPH; (6) the projects undertaken by such
authority during the past year; (7) a listing AND DESCRIPTION, IN ADDI-
TION TO THE REPORT REQUIRED BY PARAGRAPH A OF SUBDIVISION THREE OF
SECTION TWENTY-EIGHT HUNDRED NINETY-SIX OF THIS ARTICLE of [(i)] all
real property of such authority having an estimated fair market value in
excess of fifteen thousand dollars that the authority [intends to
dispose of; (ii) all such property held by the authority at the end of
the period covered by the report; and (iii) all such property disposed]
ACQUIRES OR DISPOSES of during such period. The report shall contain [an
estimate of fair market value for all such property held by the authori-
ty at the end of the period and] the price received OR PAID by the
authority and the name of the purchaser OR SELLER for all such property
sold OR BOUGHT by the authority during such period; (8) such authority's
code of ethics; [and] (9) an assessment of the effectiveness of its
internal control structure and procedures; (10) A COPY OF THE LEGIS-
LATION THAT FORMS THE STATUTORY BASIS OF THE AUTHORITY; (11) A
DESCRIPTION OF THE AUTHORITY AND ITS BOARD STRUCTURE, INCLUDING (I)
NAMES OF COMMITTEES AND COMMITTEE MEMBERS, (II) LISTS OF BOARD MEETINGS
AND ATTENDANCE, (III) DESCRIPTIONS OF MAJOR AUTHORITY UNITS, SUBSID-
IARIES, (IV) NUMBER OF EMPLOYEES; AND (V) ORGANIZATIONAL CHART; (12) ITS
CHARTER, IF ANY, AND BY-LAWS; (13) A LISTING OF MATERIAL CHANGES IN
OPERATIONS AND PROGRAMS DURING THE REPORTING YEAR; (14) AT A MINIMUM A
FOUR-YEAR FINANCIAL PLAN, INCLUDING (I) A CURRENT AND PROJECTED CAPITAL
BUDGET, AND (II) AN OPERATING BUDGET REPORT, INCLUDING AN ACTUAL VERSUS
ESTIMATED BUDGET, WITH AN ANALYSIS AND MEASUREMENT OF FINANCIAL AND
OPERATING PERFORMANCE; (15) ITS BOARD PERFORMANCE EVALUATIONS PROVIDED,
HOWEVER, THAT SUCH EVALUATIONS SHALL NOT BE SUBJECT TO DISCLOSURE UNDER
ARTICLE SIX OF THE PUBLIC OFFICERS LAW; (16) A DESCRIPTION OF THE TOTAL
AMOUNTS OF ASSETS AND/OR SERVICES BOUGHT OR SOLD WITHOUT COMPETITIVE
BIDDING, INCLUDING (I) THE NATURE OF THOSE ASSETS AND SERVICES, (II) THE
NAMES OF THE COUNTERPARTIES, AND (III) WHERE THE CONTRACT PRICE OR FAIR
MARKET VALUE FOR GOODS PURCHASED EXCEEDS A FAIR MARKET VALUE DETERMINED
BY THE AUTHORITIES BUDGET OFFICE, OR WHERE THE CONTRACT PRICE FOR GOODS
SOLD IS LESS THAN A FAIR MARKET VALUE, AN ATTESTATION OF THE FAIR MARKET
VALUE AND A DETAILED EXPLANATION EXECUTED UNDER PENALTIES OF PERJURY BY
THE CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER OF THE REASONS
FOR THE HIGH PRICE PURCHASE OR THE LOW PRICE SALE INCLUDING THE
RELATIONSHIP, IF ANY, OF PERSONS ASSOCIATED WITH THE BUYER/PURCHASER AND
PERSON ASSOCIATED WITH THE AUTHORITY AND/OR THE OFFICIALS WHO APPOINTED
MEMBERS TO THE AUTHORITY BOARD; AND (17) A DESCRIPTION OF ANY MATERIAL
PENDING LITIGATION IN WHICH THE AUTHORITY IS INVOLVED AS A PARTY DURING
THE REPORTING YEAR.
(b) [To the extent practicable, each] EACH local authority shall make
accessible to the public, via its official OR SHARED internet web site,
documentation pertaining to its mission, current activities, most recent
annual financial reports, current year budget and its most recent inde-
pendent audit report unless such information is covered by subdivision
two of section eighty-seven of the public officers law.
S 7. Section 2801 of the public authorities law, as amended by chapter
766 of the laws of 2005, is amended to read as follows:
S 2801. Budget reports by authorities. 1. State authorities. Every
state authority or commission heretofore or hereafter continued or
S. 1537--C 8
created by this chapter or any other chapter of the laws of the state of
New York shall submit to the governor, [chairman] THE CHAIR and ranking
minority member of the senate finance committee, [and chairman] THE
CHAIR and ranking minority member of the assembly ways and means commit-
tee AND THE AUTHORITIES BUDGET OFFICE, for their information, annually
NOT MORE THAN ONE HUNDRED TWENTY DAYS AND not less than ninety days
before the commencement of its fiscal year, in the form submitted to its
members or trustees, budget information on operations and capital
construction setting forth the estimated receipts and expenditures for
the next fiscal year and the current fiscal year, and the actual
receipts and expenditures for the last completed fiscal year.
2. Local authorities. For the local authority fiscal year ending on or
after December thirty-first, two thousand seven and annually thereafter,
every local authority heretofore or hereafter continued or created by
this chapter or any other chapter of the laws of the state of New York
shall submit to the chief executive officer, the chief fiscal officer,
the chairperson of the legislative body of the local government or
governments and the [entity established pursuant to section twenty-seven
of the chapter of the laws of two thousand five which added this subdi-
vision,] AUTHORITIES BUDGET OFFICE for their information, annually NOT
MORE THAN NINETY DAYS AND not less than sixty days before the commence-
ment of its fiscal year, in the form submitted to its members or trus-
tees, budget information on operations and capital construction setting
forth the estimated receipts and expenditures for the next fiscal year
and the current fiscal year, and the actual receipts and expenditures
for the last completed fiscal year.
3. IF ANY STATE OR LOCAL AUTHORITY HAS PROVIDED THE INFORMATION
REQUIRED BY THIS SECTION AS PART OF THE ANNUAL REPORT REQUIRED BY
SECTION TWENTY-EIGHT HUNDRED OF THIS TITLE, SUCH AUTHORITY MAY COMPLY
WITH THE PROVISIONS OF THIS SECTION BY REFERENCE TO SUCH INFORMATION
WITH ANY NECESSARY UPDATES.
S 8. Subdivisions 1 and 2 of section 2802 of the public authorities
law, subdivision 1 as amended and subdivision 2 as added by chapter 766
of the laws of 2005, are amended to read as follows:
1. State authorities. Every state authority or commission heretofore
or hereafter continued or created by this chapter or any other chapter
of the laws of the state of New York shall submit to the governor,
chairman and ranking minority member of the [senate finance committee,
chairman and ranking minority member of the assembly ways and means
committee and] APPROPRIATE SENATE AND ASSEMBLY COMMITTEES, the state
comptroller, [within thirty days after receipt thereof by such authori-
ty,] AND THE AUTHORITIES BUDGET OFFICE, TOGETHER WITH THE REPORT
DESCRIBED IN SECTION TWENTY-EIGHT HUNDRED OF THIS TITLE, a copy of the
annual independent audit report, performed by a certified public
accounting firm in accordance with generally accepted [government]
auditing standards AS DEFINED IN SUBDIVISION ELEVEN OF SECTION TWO OF
THE STATE FINANCE LAW, and management letter and any other external
examination of the books and accounts of such authority other than
copies of the reports of any examinations made by the state comptroller.
2. Local authorities. For the local authority fiscal year ending on or
after December thirty-first, two thousand seven and annually thereafter,
every local authority heretofore or hereafter continued or created by
this chapter or any other chapter of the laws of the state of New York
shall submit to the chief executive officer, the chief fiscal officer,
the chairperson of the legislative body of the local government or local
governments [and to the entity established pursuant to section twenty-
S. 1537--C 9
seven of the chapter of the laws of two thousand five which added this
subdivision, within thirty days after receipt thereof by such authori-
ty,] AND THE AUTHORITIES BUDGET OFFICE, TOGETHER WITH THE REPORT
DESCRIBED IN SECTION TWENTY-EIGHT HUNDRED OF THIS TITLE, a copy of the
annual independent audit report, performed by a certified public
accounting firm in accordance with generally accepted [government]
auditing standards AS DEFINED IN SUBDIVISION ELEVEN OF SECTION TWO OF
THE STATE FINANCE LAW, and management letter and any other external
examination of the books and accounts of such authority other than
copies of the reports of ANY examinations made by the state comptroller.
S 9. Section 2806 of the public authorities law, as added by chapter
149 of the laws of 1993, is amended to read as follows:
S 2806. Personnel reports by [public] STATE AND LOCAL authorities and
public benefit corporations. 1. Every [public] STATE AND LOCAL authority
and public benefit corporation shall submit to the comptroller, the
director of the budget [and], the chairpersons of the legislative fiscal
committees AND THE AUTHORITIES BUDGET OFFICE, for their information,
annually, on or before the fifteenth day of January of each calendar
year, personnel information setting forth personal service schedules by
subsidiary, division and unit which indicate position, grade, salary and
title for each employee and in summary form.
2. IF ANY STATE OR LOCAL AUTHORITY HAS PROVIDED THE INFORMATION
REQUIRED BY THIS SECTION IN THE ANNUAL REPORT REQUIRED UNDER SECTION
TWENTY-EIGHT HUNDRED OF THIS TITLE, SUCH AUTHORITY MAY COMPLY WITH THE
PROVISIONS OF THIS SECTION BY REFERENCES TO SUCH INFORMATION WITH ANY
NECESSARY UPDATES.
S 10. Subdivisions 1, 4, 6 and 7 of section 2824 of the public author-
ities law, as added by chapter 766 of the laws of 2005, are amended to
read as follows:
1. Board members of state and local authorities shall (a) execute
direct oversight of the authority's chief executive and other [senior]
management in the effective and ethical management of the authority; (b)
understand, review and monitor the implementation of fundamental finan-
cial and management controls and operational decisions of the authority;
(c) establish policies regarding the payment of salary, compensation and
reimbursements to, and establish rules for the time and attendance of,
the chief executive and [senior] management; (d) adopt a code of ethics
applicable to each officer, director and employee that, at a minimum,
includes the standards established in section seventy-four of the public
officers law; (e) establish written policies and procedures on personnel
including policies protecting employees from retaliation for disclosing
information concerning acts of wrongdoing, misconduct, malfeasance, or
other inappropriate behavior by an employee or board member of the
authority, investments, travel, the acquisition of real property and the
disposition of real and personal property and the procurement of goods
and services; [and] (f) adopt a defense and indemnification policy and
disclose such plan to any and all prospective board members; (G)
DISCHARGE EACH OF THEIR DUTIES AS BOARD MEMBERS, INCLUDING BUT NOT
LIMITED TO THOSE IMPOSED BY THIS SECTION, IN GOOD FAITH AND WITH THAT
DEGREE OF INDEPENDENCE, DILIGENCE, CARE AND SKILL WHICH AN ORDINARILY
PRUDENT PERSON WOULD EXERCISE UNDER SIMILAR CIRCUMSTANCES IN LIKE POSI-
TIONS; (H) AT THE TIME THAT THE MEMBER TAKES AND SUBSCRIBES HIS OR HER
OATH OF OFFICE, OR WITHIN SIXTY DAYS AFTER THE EFFECTIVE DATE OF THIS
PARAGRAPH IF THE MEMBER HAS ALREADY TAKEN AND SUBSCRIBED HIS OR HER OATH
OF OFFICE, EXECUTE AN ACKNOWLEDGMENT, IN THE FORM PRESCRIBED BY THE
AUTHORITIES BUDGET OFFICE, IN WHICH THE BOARD MEMBER ACKNOWLEDGES THAT
S. 1537--C 10
HE OR SHE UNDERSTANDS HIS OR HER ROLE, AND RESPONSIBILITIES; AND (I) AT
THE TIME THAT THE MEMBER TAKES AND SUBSCRIBES THEIR OATH OF OFFICE, OR
WITHIN SIXTY DAYS AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH IF THE
MEMBER HAS ALREADY TAKEN AND SUBSCRIBED THEIR OATH OF OFFICE, EXECUTE AN
ACKNOWLEDGMENT, ISSUED BY THE AUTHORITIES BUDGET OFFICE AFTER CONSULTA-
TION WITH THE OFFICE OF THE ATTORNEY GENERAL, IN WHICH THE BOARD MEMBER
ACKNOWLEDGES THAT THEY UNDERSTAND THEIR DUTY OF LOYALTY AND CARE TO THE
ORGANIZATION AND COMMITMENT TO THE AUTHORITY'S MISSION.
4. Board members of each state and local authority, or subsidiary
thereof, shall establish an audit committee to be comprised of NOT LESS
THAN THREE independent members, WHO SHALL CONSTITUTE A MAJORITY ON THE
COMMITTEE, AND WHO SHALL POSSESS THE NECESSARY SKILLS TO UNDERSTAND THE
DUTIES AND FUNCTIONS OF THE AUDIT COMMITTEE; PROVIDED, HOWEVER, THAT IN
THE EVENT THAT A BOARD HAS LESS THAN THREE INDEPENDENT MEMBERS, THE
BOARD MAY APPOINT NON-INDEPENDENT MEMBERS TO THE AUDIT COMMITTEE,
PROVIDED THAT THE INDEPENDENT MEMBERS MUST CONSTITUTE A MAJORITY OF THE
MEMBERS OF THE AUDIT COMMITTEE. The committee shall recommend to the
board the hiring of a certified independent accounting firm for such
authority, establish the compensation to be paid to the accounting firm
and provide direct oversight of the performance of the independent audit
performed by the accounting firm hired for such purposes.
6. [To the extent practicable, members] MEMBERS of the audit committee
[should] SHALL be familiar with corporate financial and accounting prac-
tices.
7. Board members of each state and local authority, or subsidiary
thereof, shall establish a governance committee to be comprised of NOT
LESS THAN THREE independent members, WHO SHALL CONSTITUTE A MAJORITY ON
THE COMMITTEE, AND WHO SHALL POSSESS THE NECESSARY SKILLS TO UNDERSTAND
THE DUTIES AND FUNCTIONS OF THE GOVERNANCE COMMITTEE; PROVIDED, HOWEVER,
THAT IN THE EVENT THAT A BOARD HAS LESS THAN THREE INDEPENDENT MEMBERS,
THE BOARD MAY APPOINT NON-INDEPENDENT MEMBERS TO THE GOVERNANCE COMMIT-
TEE, PROVIDED THAT THE INDEPENDENT MEMBERS MUST CONSTITUTE A MAJORITY OF
THE MEMBERS OF THE GOVERNANCE COMMITTEE. It shall be the responsibility
of the members of the governance committee to keep the board informed of
current best governance practices; to review corporate governance
trends; to [update] RECOMMEND UPDATES TO the authority's corporate
governance principles; [and] to advise appointing authorities on the
skills and experiences required of potential board members; TO EXAMINE
ETHICAL AND CONFLICT OF INTEREST ISSUES; TO PERFORM BOARD SELF-EVALUA-
TIONS; AND TO RECOMMEND BY-LAWS WHICH INCLUDE RULES AND PROCEDURES FOR
CONDUCT OF BOARD BUSINESS.
S 11. Section 2824 of the public authorities law is amended by adding
two new subdivisions 8 and 9 to read as follows:
8. BOARD MEMBERS OF EACH STATE AND LOCAL AUTHORITY, OR SUBSIDIARY
THEREOF WHICH ISSUES DEBT, SHALL ESTABLISH A FINANCE COMMITTEE TO BE
COMPRISED OF NOT LESS THAN THREE INDEPENDENT MEMBERS, WHO SHALL CONSTI-
TUTE A MAJORITY ON THE COMMITTEE, AND WHO SHALL POSSESS THE NECESSARY
SKILLS TO UNDERSTAND THE DUTIES AND FUNCTIONS OF THE COMMITTEE;
PROVIDED, HOWEVER, THAT IN THE EVENT THAT A BOARD HAS LESS THAN THREE
INDEPENDENT MEMBERS, THE BOARD MAY APPOINT NON-INDEPENDENT MEMBERS TO
THE FINANCE COMMITTEE, PROVIDED THAT THE INDEPENDENT MEMBERS MUST
CONSTITUTE A MAJORITY OF THE MEMBERS OF THE FINANCE COMMITTEE. IT SHALL
BE THE RESPONSIBILITY OF THE MEMBERS OF THE FINANCE COMMITTEE TO REVIEW
PROPOSALS FOR THE ISSUANCE OF DEBT BY THE AUTHORITY AND ITS SUBSIDIARIES
AND MAKE RECOMMENDATIONS.
S. 1537--C 11
9. ALL CHIEF EXECUTIVE OFFICERS OF STATE AUTHORITIES SHALL BE SUBJECT
TO THE ADVICE AND CONSENT OF THE SENATE.
S 12. The public authorities law is amended by adding a new section
2824-a to read as follows:
S 2824-A. MISSION STATEMENT AND MEASUREMENT REPORT. EACH STATE AUTHOR-
ITY SHALL SUBMIT TO THE AUTHORITIES BUDGET OFFICE ON OR BEFORE MARCH
THIRTY-FIRST, TWO THOUSAND TEN, AND EACH LOCAL AUTHORITY SHALL SUBMIT TO
THE AUTHORITIES BUDGET OFFICE ON OR BEFORE MARCH THIRTY-FIRST, TWO THOU-
SAND ELEVEN, A PROPOSED AUTHORITY MISSION STATEMENT AND PROPOSED MEAS-
UREMENTS WHICH THE AUTHORITIES BUDGET OFFICE SHALL POST ON ITS WEBSITE.
THE PROPOSED AUTHORITY MISSION STATEMENT AND PROPOSED MEASUREMENTS SHALL
HAVE THE FOLLOWING COMPONENTS: A BRIEF MISSION STATEMENT EXPRESSING THE
PURPOSE GOALS OF THE AUTHORITY; A DESCRIPTION OF THE STAKEHOLDERS OF THE
AUTHORITY AND THEIR REASONABLE EXPECTATIONS FROM THE AUTHORITY, WHICH
STAKEHOLDERS SHALL INCLUDE AT A MINIMUM THE RESIDENTS AND TAXPAYERS OF
THE AREA OF THE STATE SERVED BY THE AUTHORITY, THE PERSONS THAT USE THE
SERVICES PROVIDED BY THE AUTHORITY, AND THE EMPLOYEES OF THE AUTHORITY
AND ANY EMPLOYEE ORGANIZATION; THE GOALS OF THE AUTHORITY IN RESPONSE TO
THE NEEDS OF EACH GROUP OF STAKEHOLDERS; AND A LIST OF MEASUREMENTS BY
WHICH PERFORMANCE OF THE AUTHORITY AND THE ACHIEVEMENT OF ITS GOALS MAY
BE EVALUATED. EACH AUTHORITY SHALL REEXAMINE ITS MISSION STATEMENT AND
MEASUREMENTS ON AN ANNUAL BASIS, AND PUBLISH SELF EVALUATION BASED ON
THE STATE MEASUREMENTS HOWEVER, SUCH REEXAMINATION MAY BE WAIVED PURSU-
ANT TO A DETERMINATION BY THE DIRECTOR OF THE AUTHORITIES BUDGET OFFICE
THAT SUCH UNDERTAKING IS UNNECESSARY FOR AN INDIVIDUAL AUTHORITY.
S 13. Subdivision 2 of section 2825 of the public authorities law, as
added by chapter 766 of the laws of 2005, is amended to read as follows:
2. Except for members who serve as members by virtue of holding a
civil office of the state, the majority of the remaining members of the
governing body of every state or local authority shall be independent
members; provided, however, that this provision shall apply to appoint-
ments made on or after the effective date of [the] chapter SEVEN HUNDRED
SIXTY-SIX of the laws of two thousand five which added this subdivision.
The official or officials having the authority to appoint or remove such
remaining members shall take such actions as may be necessary to satisfy
this requirement. For the purposes of this section, an independent
member is one who:
(a) is not, and in the past two years has not been, employed by the
public authority or [an affiliate] A RELATED AUTHORITY OR PUBLIC BENEFIT
CORPORATION in an executive capacity;
(b) is not, and in the past two years has not been, employed by an
entity that received remuneration valued at more than fifteen thousand
dollars for goods and services provided to the public authority or
received any other form of financial assistance valued at more than
fifteen thousand dollars from the public authority;
(c) is not a relative of an executive officer or employee in an execu-
tive position of the public authority or [an affiliate] A RELATED
AUTHORITY OR PUBLIC BENEFIT CORPORATION; and
(d) is not, and in the past two years has not been, a lobbyist regis-
tered under a state or local law and paid by a client to influence the
management decisions, contract awards, rate determinations or any other
similar actions of the public authority or [an affiliate] A RELATED
AUTHORITY OR PUBLIC BENEFIT CORPORATION.
S 14. The public authorities law is amended by adding a new section
2879-a to read as follows:
S. 1537--C 12
S 2879-A. PUBLIC AUTHORITIES CONTRACTS; LIMITATIONS. 1. PRIOR TO THEIR
PUBLICATION FOR BIDS OR PROPOSALS, EACH STATE AUTHORITY SHALL SUBMIT TO
THE STATE COMPTROLLER, PROPOSALS FOR CONTRACTS FOR PROCUREMENT, PUBLIC
WORK, CONSTRUCTION, OR REVENUE THAT INCLUDE THE PAYMENT OF MONEY, THE
EXCHANGE OF PERSONAL OR REAL PROPERTY, THE EXCHANGE OF SERVICES, OR ANY
COMBINATION THEREOF, WHICH IN THE AGGREGATE MAY REASONABLY BE VALUED IN
EXCESS OF ONE MILLION DOLLARS. IF THE COMPTROLLER WITHIN FORTY-FIVE DAYS
OF SUCH SUBMISSION NOTIFIES THE AUTHORITY THAT, PURSUANT TO HIS OR HER
AUTHORITY TO SUPERVISE THE ACCOUNTS OF PUBLIC AUTHORITIES, HE OR SHE
WILL REVIEW AND APPROVE SUCH CONTRACT, SUCH CONTRACT OR AGREEMENT SHALL
NOT BE A VALID ENFORCEABLE CONTRACT UNLESS SUCH CONTRACT SHALL FIRST BE
APPROVED BY THE COMPTROLLER. IN THE EVENT THAT THE COMPTROLLER NOTIFIES
ANY STATE AUTHORITY THAT FINAL APPROVAL SHALL BE REQUIRED AS PROVIDED BY
THIS SUBDIVISION, THEN THE STATE AUTHORITY SHALL INCLUDE A PROVISION IN
ALL SUCH INVITATIONS TO BID OR SOLICITATIONS FOR PROPOSALS, INFORMING
THE OTHER PARTIES TO SUCH CONTRACTS THAT THE SAME ARE NOT VALID AND
ENFORCEABLE WITHOUT THE COMPTROLLER'S APPROVAL.
2. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION,
IF THE COMPTROLLER HAS NOT APPROVED OR DISAPPROVED ANY CONTRACT SUBJECT
TO THE PROVISIONS OF SUCH SUBDIVISION WITHIN NINETY DAYS OF SUBMISSION
OF SUCH CONTRACT TO HIS OR HER OFFICE, SUCH CONTRACT SHALL BE VALID AND
ENFORCEABLE.
3. IF THE COMPTROLLER DETERMINES THAT ANY CONTRACT OR CATEGORY OF
CONTRACTS OF A STATE AUTHORITY, WHICH ARE NOT SUBJECT TO THE PROVISIONS
OF SUBDIVISION ONE OF THIS SECTION, REQUIRE DIRECT SUPERVISION IN THE
FORM OF PRE-APPROVAL OF SUCH CONTRACTS, AND THE COMPTROLLER SO NOTIFIES
SUCH STATE AUTHORITY OF SUCH DETERMINATION, THEN NO SUCH CONTRACT OR
AGREEMENT BY SUCH STATE AUTHORITY SELECTED FOR REVIEW BY THE COMPTROLLER
SHALL BE A VALID ENFORCEABLE CONTRACT UNLESS SUCH CONTRACT SHALL FIRST
BE APPROVED BY THE COMPTROLLER. IN THE EVENT THAT THE COMPTROLLER NOTI-
FIES ANY STATE AUTHORITY THAT APPROVAL SHALL BE REQUIRED AS PROVIDED BY
THIS SUBDIVISION, THEN THE STATE AUTHORITY SHALL INCLUDE A PROVISION IN
ALL SUCH CONTRACTS SELECTED FOR REVIEW, INFORMING THE OTHER PARTIES TO
SUCH CONTRACTS THAT THE SAME ARE NOT VALID AND ENFORCEABLE WITHOUT THE
COMPTROLLER'S APPROVAL.
4. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION THREE OF THIS
SECTION, IF THE COMPTROLLER HAS NOT APPROVED OR DISAPPROVED ANY CONTRACT
SUBJECT TO THE PROVISIONS OF SUCH SUBDIVISION WITHIN NINETY DAYS OF
SUBMISSION OF SUCH CONTRACT TO HIS OR HER OFFICE, SUCH CONTRACT SHALL BE
VALID AND ENFORCEABLE.
5. THIS SECTION SHALL NOT APPLY TO: (A) CONTRACTS ENTERED INTO FOR THE
ISSUANCE OF BONDED INDEBTEDNESS, EXCEPT CONTRACTS FOR PERSONAL SERVICES;
OR (B) CONTRACTS ENTERED INTO FOR THE PROCUREMENT OF GOODS AND/OR
SERVICES MADE TO MEET EMERGENCIES ARISING FROM UNFORESEEN CAUSES.
FOR THE PURPOSE OF THIS PARAGRAPH "EMERGENCY" SHALL MEAN AN URGENT AND
UNEXPECTED REQUIREMENT WHERE HEALTH AND PUBLIC SAFETY OR THE CONSERVA-
TION OF PUBLIC RESOURCES IS AT RISK. THE PUBLIC AUTHORITY SHALL DOCUMENT
IN THE PROCUREMENT RECORD, SUBJECT TO REVIEW BY THE STATE COMPTROLLER,
THE NATURE OF THE EMERGENCY GIVING RISE TO THE PROCUREMENT; OR (C)
CONTRACTS OF PURCHASE OR SALE MADE ON A RECOGNIZED MARKET FOR THE GOODS,
SERVICES, OR COMMODITIES IN QUESTION IN ACCORDANCE WITH STANDARD TERMS
AND CONDITIONS OF SALE AT A MARKET PRICE. NOTHING IN THIS SECTION SHALL
BE CONSTRUED TO REQUIRE ADDITIONAL OR FURTHER APPROVAL IN RELATION TO
COMMITMENTS, CONTRACTS, AGREEMENTS OR INDEBTEDNESS ENTERED INTO OR
INCURRED PRIOR TO THE EFFECTIVE DATE HEREOF.
S. 1537--C 13
6. THE PROVISIONS OF THIS SECTION DO NOT GRANT OR DIMINISH ANY POWER
OR RIGHT TO REVIEW CONTRACTS BEYOND OR FROM THAT WHICH THE COMPTROLLER
MAY HAVE PURSUANT TO HIS OR HER AUTHORITY TO SUPERVISE THE ACCOUNTS OF
PUBLIC AUTHORITIES. IF ANY PROVISIONS OF THIS SECTION OR ITS APPLICATION
TO ANY PERSON OR CIRCUMSTANCE IS HELD INVALID BY A COURT OF LAST RESORT,
THEN THIS SECTION SHALL BE DEEMED TO BE INVALID IN ITS ENTIRETY AND
SHALL BE DEEMED REPEALED.
S 15. Subdivision 3 of section 2896 of the public authorities law, as
added by chapter 766 of the laws of 2005, is amended to read as follows:
3. a. Each public authority shall publish, not less frequently than
annually, a report listing all real property of the public authority.
Such report shall [consist of] INCLUDE a list and full description of
all real and personal property disposed of during such period. The
report shall contain the price received by the public authority and the
name of the purchaser for all such property sold by the public authority
during such period.
b. The public authority shall deliver copies of such report to the
comptroller, the director of the budget, the commissioner of general
services, [and] the legislature AND THE AUTHORITIES BUDGET OFFICE.
S 16. Section 2975 of the public authorities law is amended by adding
a new subdivision 3-a to read as follows:
3-A. A DIRECT PORTION OF THESE FUNDS SHALL BE ALLOCATED TO FUND THE
AUTHORITIES BUDGET OFFICE AS CREATED BY SECTION FOUR OF THIS CHAPTER.
S 17. The public authorities law is amended by adding a new section
2827-a to read as follows:
S 2827-A. SUBSIDIARIES OF PUBLIC AUTHORITIES. 1. NOTWITHSTANDING ANY
LAW TO THE CONTRARY, NO STATE AUTHORITY SHALL HEREAFTER HAVE THE POWER
TO ORGANIZE ANY SUBSIDIARY CORPORATION UNLESS THE LEGISLATURE SHALL HAVE
ENACTED A LAW GRANTING SUCH STATE AUTHORITY SUCH POWER FOR THE ORGANIZA-
TION OF A SPECIFIC CORPORATION, PROVIDED, HOWEVER, THAT A STATE AUTHORI-
TY MAY ORGANIZE A SUBSIDIARY CORPORATION PURSUANT TO THE FOLLOWING
REQUIREMENTS:
(A) THE PURPOSE FOR WHICH THE SUBSIDIARY CORPORATION SHALL BE ORGAN-
IZED SHALL BE FOR A PROJECT OR PROJECTS WHICH THE STATE AUTHORITY HAS
THE POWER TO PURSUE PURSUANT TO ITS CORPORATE PURPOSES;
(B) THE PRIMARY REASON FOR WHICH THE SUBSIDIARY CORPORATION SHALL BE
ORGANIZED SHALL BE TO LIMIT THE POTENTIAL LIABILITY IMPACT OF THE
SUBSIDIARY'S PROJECT OR PROJECTS ON THE AUTHORITY OR BECAUSE STATE OR
FEDERAL LAW REQUIRES THAT THE PURPOSE OF A SUBSIDIARY BE UNDERTAKEN
THROUGH A SPECIFIC CORPORATE STRUCTURE; AND
(C) THE SUBSIDIARY CORPORATION SHALL MAKE THE REPORTS AND OTHER
DISCLOSURES AS ARE REQUIRED OF STATE AUTHORITIES, UNLESS THE SUBSIDIARY
CORPORATION'S OPERATIONS AND FINANCES ARE CONSOLIDATED WITH THOSE OF THE
AUTHORITY OF WHICH IT IS A SUBSIDIARY.
2. IN SUCH CASES WHERE A STATE AUTHORITY HAS THE POWER TO ORGANIZE A
SUBSIDIARY CORPORATION PURSUANT TO SUBDIVISION ONE OF THIS SECTION, THE
STATE AUTHORITY SHALL FILE, NO LESS THAN SIXTY DAYS PRIOR TO THE FORMA-
TION OF SUCH SUBSIDIARY, NOTICE TO THE AUTHORITIES BUDGET OFFICE, THE
GOVERNOR, THE COMPTROLLER, AND THE LEGISLATURE THAT IT WILL BE CREATING
A SUBSIDIARY.
3. SUBSIDIARY CORPORATIONS FORMED UNDER SUBDIVISION ONE OF THIS
SECTION SHALL NOT HAVE THE AUTHORITY TO ISSUE BONDS, NOTES OR OTHER
DEBTS, PROVIDED, HOWEVER, THAT SUCH SUBSIDIARY CORPORATIONS MAY ISSUE
NOTES OR OTHER DEBT TO THE PUBLIC AUTHORITY OF WHICH IT IS A SUBSIDIARY.
NO SUCH DEBT ISSUED BY THE SUBSIDIARY TO ITS PARENT AUTHORITY SHALL IN
TOTAL EXCEED, AT ANY TIME, A PRINCIPAL AMOUNT OF FIVE HUNDRED THOUSAND
S. 1537--C 14
DOLLARS OR, DURING THE NINE MONTHS AFTER THE FORMATION OF THE SUBSID-
IARY, ONE MILLION DOLLARS.
4. THE CERTIFICATE OF INCORPORATION OR OTHER DOCUMENT FILED TO ORGAN-
IZE A SUBSIDIARY CORPORATION UNDER THIS SECTION SHALL STATE THAT THE
STATE AUTHORITY IS THE PERSON ORGANIZING THE CORPORATION.
5. PROVIDED, HOWEVER, THAT NOTHING IN THIS SECTION SHALL BE CONSTRUED
TO GRANT AN AUTHORITY THE POWER TO CREATE A SUBSIDIARY WHERE THE AUTHOR-
ITY DOES NOT OTHERWISE HAVE THE POWER TO DO SO.
6. ON OR BEFORE THE FIRST DAY OF JANUARY, TWO THOUSAND TEN, AND ANNU-
ALLY ON SUCH DAY THEREAFTER, ANY SUBSIDIARY PUBLIC BENEFIT CORPORATION,
IN COOPERATION WITH ITS PARENT PUBLIC BENEFIT CORPORATION, SHALL PROVIDE
TO THE CHAIR AND RANKING MINORITY MEMBER OF THE SENATE FINANCE COMMITTEE
AND THE CHAIR AND RANKING MINORITY MEMBER OF THE ASSEMBLY WAYS AND MEANS
COMMITTEE, A REPORT ON THE SUBSIDIARY PUBLIC BENEFIT CORPORATION. SUCH
REPORT SHALL INCLUDE FOR EACH SUBSIDIARY:
(A) THE COMPLETE LEGAL NAME, ADDRESS AND CONTACT INFORMATION OF THE
SUBSIDIARY;
(B) THE STRUCTURE OF THE ORGANIZATION OF THE SUBSIDIARY, INCLUDING THE
NAMES AND TITLES OF EACH OF ITS MEMBERS, DIRECTORS AND OFFICERS, AS WELL
AS A CHART OF ITS ORGANIZATIONAL STRUCTURE;
(C) THE COMPLETE BYLAWS AND LEGAL ORGANIZATION PAPERS OF THE SUBSID-
IARY;
(D) A COMPLETE REPORT OF THE PURPOSE, OPERATIONS, MISSION AND PROJECTS
OF THE SUBSIDIARY, INCLUDING A STATEMENT OF JUSTIFICATION AS TO WHY THE
SUBSIDIARY IS NECESSARY TO CONTINUE ITS OPERATIONS FOR THE PUBLIC BENE-
FIT FOR THE PEOPLE OF THE STATE OF NEW YORK; AND
(E) ANY OTHER INFORMATION THE SUBSIDIARY PUBLIC BENEFIT CORPORATION
DEEMS IMPORTANT TO INCLUDE IN SUCH REPORT.
S 18. The public authorities law is amended by adding a new section
2856 to read as follows:
S 2856. CONSIDERATION OF PUBLIC AUTHORITY DEBT. ON OR BEFORE A DATE
FIXED BY THE AUTHORITIES BUDGET OFFICE, EVERY AUTHORITY NOT SUBJECT TO A
STATUTORY LIMIT ON BONDS, NOTES, OR OTHER DEBT OBLIGATIONS IT MAY ISSUE,
SHALL SUBMIT TO THE AUTHORITIES BUDGET OFFICE A STATEMENT OF INTENT TO
GUIDE THE AUTHORITY'S ISSUANCE AND OVERALL AMOUNT OF BONDS, NOTES, OR
OTHER DEBT OBLIGATIONS IT MAY ISSUE.
S 19. Subdivision 3 of section 2897 of the public authorities law, as
added by chapter 766 of the laws of 2005, is amended to read as follows:
3. Method of disposition. Subject to section twenty-eight hundred
ninety-six of this title, any public authority may dispose of property
for not less than the fair market value of such property by sale,
exchange, or transfer, for cash, credit, or other property, with or
without warranty, and upon such other terms and conditions as the
contracting officer deems proper, and it may execute such documents for
the transfer of title or other interest in property and take such other
action as it deems necessary or proper to dispose of such property under
the provisions of this section. Provided, however, that no disposition
of real property, OR any interest in real property, [or any other prop-
erty which because of its unique nature is not subject to fair market
pricing] shall be made unless an appraisal of the value of such property
has been made by an independent appraiser and included in the record of
the transaction, AND, PROVIDED FURTHER, THAT NO DISPOSITION OF ANY OTHER
PROPERTY, WHICH BECAUSE OF ITS UNIQUE NATURE OR THE UNIQUE CIRCUMSTANCES
OF THE PROPOSED TRANSACTION IS NOT READILY VALUED BY REFERENCE TO AN
ACTIVE MARKET FOR SIMILAR PROPERTY, SHALL BE MADE WITHOUT A SIMILAR
APPRAISAL.
S. 1537--C 15
S 20. Paragraphs c and d of subdivision 6 of section 2897 of the
public authorities law, as added by chapter 766 of the laws of 2005, are
amended to read as follows:
c. Disposals and contracts for disposal of property may be negotiated
or made by public auction without regard to paragraphs a and b of this
subdivision but subject to obtaining such competition as is feasible
under the circumstances, if:
(i) the personal property involved [is of a nature and quantity which,
if] HAS QUALITIES SEPARATE FROM THE UTILITARIAN PURPOSE OF SUCH PROPER-
TY, SUCH AS ARTISTIC QUALITY, ANTIQUITY, HISTORICAL SIGNIFICANCE, RARI-
TY, OR OTHER QUALITY OF SIMILAR EFFECT, THAT WOULD TEND TO INCREASE ITS
VALUE, OR IF THE PERSONAL PROPERTY IS TO BE SOLD IN SUCH QUANTITY THAT,
IF IT WERE disposed of under paragraphs a and b of this subdivision,
would [aversely] ADVERSELY affect the state or local market for such
property, and the estimated fair market value of such property and other
satisfactory terms of disposal can be obtained by negotiation;
(ii) the fair market value of the property does not exceed fifteen
thousand dollars;
(iii) bid prices after advertising therefor are not reasonable, either
as to all or some part of the property, or have not been independently
arrived at in open competition;
(iv) the disposal will be to the state or any political subdivision,
and the estimated fair market value of the property and other satisfac-
tory terms of disposal are obtained by negotiation; OR
(v) [the disposal is for an amount less than the estimated fair market
value of the property, the terms of such disposal are obtained by public
auction or negotiation, the disposal of the property is intended to
further the public health, safety or welfare or an economic development
interest of the state or a political subdivision (to include but not
limited to, the prevention or remediation of a substantial threat to
public health or safety, the creation or retention of a substantial
number of job opportunities, or the creation or retention of a substan-
tial source of revenues, or where the authority's enabling legislation
permits), the purpose and the terms of such disposal are documented in
writing and approved by resolution of the board of the public authority;
or
(vi)] such action is otherwise authorized by law.
d. (i) An explanatory statement shall be prepared of the circumstances
of each disposal by negotiation of:
(A) any personal property which has an estimated fair market value in
excess of fifteen thousand dollars;
(B) any real property that has an estimated fair market value in
excess of one hundred thousand dollars, except that any real property
disposed of by lease or exchange shall only be subject to clauses (C)
[through (E)] AND (D) of this subparagraph;
(C) any real property disposed of by lease [for a term of five years
or less], if the estimated [fair] annual rent OVER THE TERM OF THE LEASE
is in excess of [one hundred thousand dollars for any of such years]
FIFTEEN THOUSAND DOLLARS;
(D) [any real property disposed of by lease for a term of more than
five years, if the total estimated rent over the term of the lease is in
excess of one hundred thousand dollars; or
(E)] any real property or real and related personal property disposed
of by exchange, regardless of value, or any property any part of the
consideration for which is real property.
S. 1537--C 16
(ii) Each such statement shall be transmitted to the persons entitled
to receive copies of the report required under section twenty-eight
hundred ninety-six of this title not less than ninety days in advance of
such disposal, and a copy thereof shall be preserved in the files of the
public authority making such disposal.
S 21. Paragraph (b) of subdivision 11 of section 310 of the executive
law, as amended by chapter 628 of the laws of 2003, is amended to read
as follows:
(b) A "STATE AUTHORITY," AS DEFINED IN SUBDIVISION ONE OF SECTION TWO
OF THE PUBLIC AUTHORITIES LAW, AND the following:
Albany County Airport Authority;
Albany Port District Commission;
Alfred, Almond, Hornellsville Sewer Authority;
Battery Park City Authority;
Cayuga County Water and Sewer Authority;
(Nelson A. Rockefeller) Empire State Plaza Performing Arts
Center Corporation;
Industrial Exhibit Authority;
Livingston County Water and Sewer Authority;
Long Island Power Authority;
Long Island Rail Road;
Long Island Market Authority;
Manhattan and Bronx Surface Transit Operating Authority;
Metro-North Commuter Railroad;
Metropolitan Suburban Bus Authority;
Metropolitan Transportation Authority;
Natural Heritage Trust;
New York City Transit Authority;
New York Convention Center Operating Corporation;
New York State Bridge Authority;
New York State Olympic Regional Development Authority;
New York State Thruway Authority;
Niagara Falls Public Water Authority;
Niagara Falls Water Board;
Port of Oswego Authority;
Power Authority of the State of New York;
Roosevelt Island Operating Corporation;
Schenectady Metroplex Development Authority;
State Insurance Fund;
Staten Island Rapid Transit Operating Authority;
State University Construction Fund;
Triborough Bridge and Tunnel Authority.
Upper Mohawk valley regional water board.
Upper Mohawk valley regional water finance authority.
Upper Mohawk valley memorial auditorium authority.
Urban Development Corporation and its subsidiary corporations.
S 22. Article 9 of the public authorities law is amended by adding a
new title 12 to read as follows:
TITLE 12
WHISTLEBLOWER ACCESS AND ASSISTANCE PROGRAM
SECTION 2986. WHISTLEBLOWER ACCESS AND ASSISTANCE PROGRAM.
S 2986. WHISTLEBLOWER ACCESS AND ASSISTANCE PROGRAM. 1. DEFINITIONS.
(A) "EMPLOYEES OF STATE AND LOCAL AUTHORITIES" MEANS THOSE PERSONS
EMPLOYED AT STATE AND LOCAL AUTHORITIES, INCLUDING BUT NOT LIMITED TO:
FULL-TIME AND PART-TIME EMPLOYEES, CONTRACTORS, THOSE EMPLOYEES ON
PROBATION, AND TEMPORARY EMPLOYEES.
S. 1537--C 17
(B) "ATTORNEY GENERAL" SHALL MEAN THE ATTORNEY GENERAL OF THE STATE OF
NEW YORK.
(C) "WHISTLEBLOWER" SHALL MEAN ANY EMPLOYEE OF A STATE OR LOCAL
AUTHORITY WHO DISCLOSES INFORMATION CONCERNING ACTS OF WRONGDOING,
MISCONDUCT, MALFEASANCE, OR OTHER INAPPROPRIATE BEHAVIOR BY AN EMPLOYEE
OR BOARD MEMBER OF THE AUTHORITY, INVESTMENTS, TRAVEL, THE ACQUISITION
OF REAL OR PERSONAL PROPERTY AND THE DISPOSITION OF REAL OR PERSONAL
PROPERTY AND THE PROCUREMENT OF GOODS AND SERVICES.
2. THE DIRECTOR OF THE AUTHORITIES BUDGET OFFICE, AFTER CONSULTATION
WITH THE ATTORNEY GENERAL, SHALL DEVELOP AND RECOMMEND TO THE LEGISLA-
TURE A WHISTLEBLOWER ACCESS AND ASSISTANCE PROGRAM WHICH SHALL INCLUDE,
BUT NOT BE LIMITED TO (A) EVALUATING AND COMMENTING ON WHISTLEBLOWER
PROGRAMS AND POLICIES BY STATE AND LOCAL AUTHORITIES PURSUANT TO PARA-
GRAPH (E) OF SUBDIVISION ONE OF SECTION TWENTY-EIGHT HUNDRED TWENTY-FOUR
OF THIS CHAPTER;
(B) ESTABLISHING TOLL-FREE TELEPHONE AND FACSIMILE LINES AVAILABLE TO
EMPLOYEES AT STATE AND LOCAL AUTHORITIES;
(C) OFFERING ADVICE REGARDING THE EMPLOYEE'S RIGHTS UNDER APPLICABLE
STATE AND FEDERAL LAWS AND ADVICE AND OPTIONS AVAILABLE TO ALL PERSONS;
AND
(D) OFFERING AN OPPORTUNITY FOR EMPLOYEES OF STATE AND LOCAL AUTHORI-
TIES TO IDENTIFY CONCERNS REGARDING ANY ISSUE AT A STATE OR LOCAL
AUTHORITY.
3. ANY COMMUNICATIONS BETWEEN AN EMPLOYEE AND THE AUTHORITIES BUDGET
OFFICE PURSUANT TO THIS SECTION SHALL BE HELD STRICTLY CONFIDENTIAL BY
THE AUTHORITIES BUDGET OFFICE, UNLESS THE EMPLOYEE SPECIFICALLY WAIVES
IN WRITING THE RIGHT TO CONFIDENTIALITY.
S 23. The public authorities law is amended by adding a new section
2857 to read as follows:
S 2857. ACTIONS BY AN AUTHORITY. NO STATE OR LOCAL AUTHORITY SHALL
FIRE, DISCHARGE, DEMOTE, SUSPEND, THREATEN, HARASS OR DISCRIMINATE
AGAINST AN EMPLOYEE BECAUSE OF THE EMPLOYEE'S ROLE AS A WHISTLEBLOWER,
INSOFAR AS THE ACTIONS TAKEN BY THE EMPLOYEE ARE LEGAL.
S 24. Article 9 of the public authorities law is amended by adding a
new title 12-A to read as follows:
TITLE 12-A
PUBLIC AUTHORITIES LOBBYING CONTACTS
SECTION 2987. LOBBYING CONTACTS.
S 2987. LOBBYING CONTACTS. 1. DEFINITIONS. AS USED IN THIS SECTION:
(A) "LOBBYING" SHALL HAVE THE SAME MEANING AS DEFINED IN SECTION ONE-C
OF THE LEGISLATIVE LAW.
(B) "LOBBYING CONTACT" SHALL MEAN ANY CONVERSATION, IN PERSON OR BY
TELEPHONIC OR OTHER REMOTE MEANS, OR CORRESPONDENCE BETWEEN ANY LOBBYIST
AND ANY PERSON WITHIN A STATE AUTHORITY WHO CAN MAKE OR INFLUENCE A
DECISION ON ANY MATTER ON BEHALF OF THE STATE AUTHORITY, AND SHALL
INCLUDE, AT A MINIMUM, ALL MEMBERS OF THE GOVERNING BOARD AND ALL OFFI-
CERS OF THE STATE AUTHORITY.
(C) "LOBBYIST" SHALL MEAN ANY PERSON WHO CONTACTS A STATE AUTHORITY IN
AN EFFORT TO OBTAIN FAVORABLE ACTION BY THE AUTHORITY ON ANY MATTER ON
BEHALF OF ANOTHER PERSON.
2. EVERY STATE AUTHORITY SHALL MAINTAIN A RECORD OF ALL LOBBYING
CONTACTS MADE WITH SUCH AUTHORITY.
3. EVERY MEMBER, OFFICER OR EMPLOYEE OF A STATE AUTHORITY WHO IS THE
PERSON CONTACTED BY A LOBBYIST SHALL MAKE A CONTEMPORANEOUS RECORD OF
SUCH CONTACT CONTAINING THE DAY AND TIME OF THE CONTACT, THE IDENTITY OF
THE LOBBYIST, AND A GENERAL SUMMARY OF THE SUBSTANCE OF THE CONTACT.
S. 1537--C 18
SUCH PERSON SHALL NOT BE REQUIRED TO MAKE A RECORD OF THE RECEIPT OF
DOCUMENTARY LOBBYING CONTACTS IF THE DOCUMENT OR A COPY THEREOF IS KEPT
IN A FILE RELATING TO LOBBYING CONTACTS.
4. EACH STATE AUTHORITY SHALL ADOPT A POLICY IMPLEMENTING THE REQUIRE-
MENTS OF THIS SECTION. SUCH POLICY SHALL APPOINT AN OFFICER TO WHOM ALL
SUCH RECORDS SHALL BE DELIVERED. SUCH OFFICER SHALL MAINTAIN SUCH
RECORDS FOR NOT LESS THAN SEVEN YEARS IN A FILING SYSTEM DESIGNED TO
ORGANIZE SUCH RECORDS IN A MANNER SO AS TO MAKE SUCH RECORDS USEFUL TO
DETERMINE WHETHER THE DECISIONS OF THE AUTHORITY WERE INFLUENCED BY
LOBBYING CONTACTS.
S 25. Severability. If any provision of this act or its application to
any person or circumstance is held invalid, this invalidity does not
affect other provisions or applications of this act that can be given
effect without the invalid provision or application, and to this end the
provisions of this act are declared to be severable.
S 26. This act shall take effect on the sixtieth day after it shall
have become a law; provided, however that the amendments to section 310
of the executive law made by section twenty-one of this act shall not
affect the expiration of such section and shall be deemed to expire
therewith.
