S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   790

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            January 15, 2009
                               ___________

Introduced  by  Sen.  ALESI  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and Commissions

AN  ACT  to  amend the public authorities law, the executive law and the
  public officers law, in relation to clarifying the application of  the
  accountability standards, open meetings law and freedom of information
  requirements to local development corporations

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph (a) of subdivision  2  of  section  2800  of  the
public  authorities law, as added by chapter 766 of the laws of 2005, is
amended to read as follows:
  (a) Every local authority, [continued or created by  this  chapter  or
any  other  chapter  of  the  laws of the state of New York] PURSUANT TO
SECTION TWO OF THIS CHAPTER 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 the entity established  pursu-
ant  to section twenty-seven of [the] chapter SEVEN HUNDRED SIXTY-SIX of
the laws of two thousand five [which  added  this  subdivision],  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;  (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; (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 repay-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03470-01-9
              

S. 790                              2

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 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 posi-
tion of such authority whose salary is in excess of one hundred thousand
dollars; (6) the projects undertaken by such authority during  the  past
year; (7) a listing 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 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 by the author-
ity and the name of the purchaser for all  such  property  sold  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.
  S 2. Subdivision 2 of section 2801 of the public authorities  law,  as
added by chapter 766 of the laws of 2005, is amended to read as follows:
  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]
PURSUANT TO SECTION TWO OF THIS CHAPTER shall submit to the chief execu-
tive  officer, the chief fiscal officer, the chairperson of the legisla-
tive body of the local government or governments and the  entity  estab-
lished  pursuant  to section twenty-seven of [the] chapter SEVEN HUNDRED
SIXTY-SIX of the laws of two thousand five [which  added  this  subdivi-
sion],  for  their information, annually not less than sixty 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.
  S 3. Subdivision 1 of section 2895 of the public authorities  law,  as
added by chapter 766 of the laws of 2005, is amended to read as follows:
  1.  "Contracting  officer"  shall  mean  the  officer or employee of a
public authority OR LOCAL AUTHORITY PURSUANT  TO  SECTION  TWO  OF  THIS
CHAPTER  who shall be appointed by resolution of the board of the public
OR LOCAL authority to be responsible for the disposition of property.
  S 4. Section 2896 of the public authorities law, as added  by  chapter
766 of the laws of 2005, is amended to read as follows:
  S  2896.  Duties  of  public AND LOCAL authorities with respect to the
disposal of property. 1. Every PUBLIC AND LOCAL authority, as defined in
section two of this chapter, shall  adopt  by  resolution  comprehensive
guidelines which shall (a) detail the public OR LOCAL authority's opera-
tive policy and instructions regarding the use, awarding, monitoring and
reporting of contracts for the disposal of property, and (b) designate a
contracting  officer  who  shall  be responsible for the public OR LOCAL
authority's compliance with, and enforcement of, such  guidelines.  Such
guidelines  shall  be  consistent  with, and shall require the public OR
LOCAL authority's contracting activities to comply  with  this  section,

S. 790                              3

the  [authorities] AUTHORITY'S enabling legislation and any other appli-
cable law for the disposal of property, except that such guidelines  may
be  stricter than the provisions of this section, the authorities enabl-
ing legislation and any other applicable law for the disposal of proper-
ty  if  the  public  OR LOCAL authority determines that additional safe-
guards  are  necessary  to  assure  the  integrity  of  its  disposition
activities.  Guidelines  approved by the public OR LOCAL authority shall
be annually reviewed and approved by the governing body of the public OR
LOCAL authority. On or before the thirty-first  day  of  March  in  each
year,  the  public  OR LOCAL authority shall file with the comptroller a
copy of the guidelines most recently reviewed and approved by the public
OR LOCAL authority, including the name of the public OR  LOCAL  authori-
ty's  designated  contracting officer. At the time of filing such guide-
lines with the comptroller, every public OR LOCAL authority  shall  also
post  such  guidelines  on  the  public  OR  LOCAL  authority's internet
website. IF THE LOCAL AUTHORITY DOES NOT MAINTAIN ITS OWN WEBSITE,  THEN
THE  GUIDELINES  SHALL  BE  POSTED  ON THE WEBSITE OF THE LOCALITY WHICH
CREATED SUCH AUTHORITY. Guidelines posted on the public OR LOCAL author-
ity's internet website shall be maintained  on  such  website  at  least
until  the  procurement  guidelines for the following year are posted on
such website.
  2. Each public OR LOCAL authority shall:
  a. maintain adequate inventory controls and accountability systems for
all property under its control;
  b. periodically inventory such property to  determine  which  property
shall be disposed of;
  c. produce a written report of such property in accordance with subdi-
vision three of this section;
  d.  transfer  or  dispose  of such property as promptly as possible in
accordance with section twenty-eight hundred ninety-seven of this title.
  3. a. Each public OR LOCAL authority shall publish, not less frequent-
ly than annually, a report listing all real property of  the  public  OR
LOCAL  authority.    Such  report  shall  consist  of  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 OR
LOCAL authority and the name of the purchaser for all such property sold
by [the] SUCH public OR LOCAL 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.
  C. THE LOCAL AUTHORITY SHALL DELIVER COPIES  OF  SUCH  REPORT  TO  THE
COMPTROLLER, THE CHIEF EXECUTIVE OFFICER OF THE LOCALITY, AND THE CHAIR-
PERSON OF THE LEGISLATIVE BODY OF THE LOCAL GOVERNMENT.
  S  5.  Section 2897 of the public authorities law, as added by chapter
766 of the laws of 2005, is amended to read as follows:
  S 2897. Disposal of public OR LOCAL authority property. 1. Supervision
and direction.  Except  as  otherwise  provided  in  this  section,  the
contracting  officer  designated by each public OR LOCAL authority shall
have supervision and direction over the disposition of property of  such
public OR LOCAL authority.
  2. Custody and control. (A) The custody and control of the property of
a  public  authority,  pending its disposition, and the disposal of such
property, shall be performed by the public authority in possession ther-
eof or by the commissioner of general services when so authorized  under
this section.

S. 790                              4

  (B)  THE  CUSTODY  AND  CONTROL  OF THE PROPERTY OF A LOCAL AUTHORITY,
PENDING ITS DISPOSITION, AND THE DISPOSAL  OF  SUCH  PROPERTY  SHALL  BE
PERFORMED BY THE LOCAL AUTHORITY IN POSSESSION THEREOF.
  3.  Method  of  disposition.  Subject  to section twenty-eight hundred
ninety-six of this title, any public OR LOCAL 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, any interest in real property, or any other property
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 tran-
saction.
  4. Sales by the commissioner of general services.  When  it  shall  be
deemed advantageous to the state, any public authority may enter into an
agreement  with  the  commissioner  of general services where under such
commissioner may dispose of property  of  such  public  authority  under
terms  and  conditions agreed to by the public authority and the commis-
sioner of general services. In disposing  of  any  such  property  of  a
public authority, the commissioner of general services shall be bound by
the  terms of this title and references to the contracting officer shall
be deemed to refer to such commissioner.
  5. Validity of deed, bill of sale, lease, or other instrument. A deed,
bill of sale, lease, or other instrument executed by or on behalf of any
public OR LOCAL authority, purporting to transfer  title  or  any  other
interest  in  property  of  a public OR LOCAL authority under this title
shall be conclusive evidence of compliance with the provisions  of  this
title insofar as concerns title or other interest of any bona fide gran-
tee or transferee who has given valuable consideration for such title or
other  interest  and  has  not received actual or constructive notice of
lack of such compliance prior to the closing.
  6. Bids for disposal; advertising; procedure; disposal by negotiation;
explanatory statement. a. All disposals or  contracts  for  disposal  of
property  of  a  public  OR  LOCAL  authority  made or authorized by the
contracting officer shall be made after publicly  advertising  for  bids
except as provided in paragraph c of this subdivision.
  b.  Whenever public advertising for bids is required under paragraph a
of this subdivision:
  (i) the advertisement for bids shall be made at such time prior to the
disposal or contract, through such methods, and on such terms and condi-
tions as shall permit full and  free  competition  consistent  with  the
value and nature of the property;
  (ii) all bids shall be publicly disclosed at the time and place stated
in the advertisement; and
  (iii)  the award shall be made with reasonable promptness by notice to
the responsible bidder whose bid, conforming to the invitation for bids,
will be most advantageous to the state OR THE LOCALITY, price and  other
factors  considered;  provided, that all bids may be rejected when it is
in the public interest to do so.
  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

S. 790                              5

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 disposed of under paragraphs a  and  b  of  this  subdivision,  would
aversely  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;
  (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) 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 is  in  excess  of  one  hundred
thousand dollars for any of such years;
  (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.
  (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 or local authority making such disposal.
  S 6. Section 51 of the executive law, as added by chapter 766  of  the
laws of 2005, is amended to read as follows:
  S  51.  Jurisdiction.  This  article shall, subject to the limitations
contained herein, confer upon the office of the state inspector general,
jurisdiction over all covered agencies. For the purposes of this article
"covered agency" shall include all executive  branch  agencies,  depart-

S. 790                              6

ments,  divisions,  officers,  boards  and commissions, public AND LOCAL
authorities, AS DEFINED IN SECTION TWO OF  THE  PUBLIC  AUTHORITIES  LAW
(other than multi-state or multi-national authorities), and public bene-
fit  corporations,  the heads of which are appointed by the governor and
which do not have their own inspector general by statute.    Wherever  a
covered  agency  is  a  board,  commission, a public authority or public
benefit corporation, the head of the agency is the chairperson thereof.
  S 7. Subdivision 3 of section 86 of the public officers law, as  added
by chapter 933 of the laws of 1977, is amended to read as follows:
  3.  "Agency"  means  any state or municipal department, board, bureau,
division, commission, committee, public OR LOCAL authority  (AS  DEFINED
IN SECTION TWO OF THE PUBLIC AUTHORITIES LAW), public corporation, coun-
cil,  office  or  other governmental entity performing a governmental or
proprietary function for the state or any  one  or  more  municipalities
thereof, except the judiciary or the state legislature.
  S  8.  Subdivision  2  of  section  102 of the public officers law, as
amended by chapter 704 of the laws of 1979 and such  section  as  renum-
bered by chapter 652 of the laws of 1983, is amended to read as follows:
  2.  "Public  body" means any entity, for which a quorum is required in
order to conduct public business and  which  consists  of  two  or  more
members,  performing  a  governmental  function  for the state or for an
agency or department thereof, or for a public corporation as defined  in
section  sixty-six of the general construction law, OR A LOCAL AUTHORITY
AS DEFINED BY SECTION TWO OF THE PUBLIC AUTHORITIES LAW, or committee or
subcommittee or other similar body of such public body.
  S 9. This act shall take effect on the one hundred twentieth day after
it shall have become a law; provided, however, that effective immediate-
ly, the addition, amendment and/or repeal  of  any  rule  or  regulation
necessary  for  the implementation of this act on its effective date are
authorized and directed to be made  and  completed  on  or  before  such
effective date.