Senate Bill S4451B

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

                                  4451

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              April 6, 2011
                               ___________

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

AN ACT to amend the public authorities law, the  general  municipal  law
  and  the not-for-profit corporation law, in relation to the activities
  of the authority budget office; and to repeal subdivision 3 of section
  2801 and section 2806 of the public authorities law relating thereto

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

  Section  1.  Subdivision 2 of section 2 of the public authorities law,
as added by chapter 766 of the laws of  2005,  is  amended  to  read  as
follows:
  2. "local authority" shall mean (a) a public authority or public bene-
fit  corporation  created by or existing under this chapter or any other
law of the state of New York whose members do not hold a civil office of
the state, are not appointed by the governor or  are  appointed  by  the
governor specifically upon the recommendation of the local government or
governments; (b) a not-for-profit corporation affiliated with, sponsored
by,  or created by a county, city, town or village government OR A LOCAL
PUBLIC AUTHORITY; (c) a local industrial developmental agency or author-
ity or other local public benefit corporation; [or] (d) A LOCAL DEVELOP-
MENT CORPORATION INCORPORATED PURSUANT TO SECTION FOURTEEN HUNDRED ELEV-
EN OF THE NOT-FOR-PROFIT CORPORATION LAW THAT (I) HAS ONE OR MORE  BOARD
MEMBERS  APPOINTED  BY  A  COUNTY, CITY, TOWN OR VILLAGE GOVERNMENT OR A
PUBLIC AUTHORITY, OR HAS ONE OR MORE BOARD MEMBERS THAT SERVE BY  VIRTUE
OF  HOLDING A CIVIL OFFICE OF A MUNICIPAL GOVERNMENT; (II) HAS ISSUED OR
HAS THE AUTHORITY TO ISSUE TAX EXEMPT DEBT; (III)  ACCEPTS,  ADMINISTERS
OR MANAGES PUBLIC FUNDS OR FINANCIAL ASSISTANCE; (IV) PROVIDES OR GRANTS
STATE  OR  MUNICIPAL  TAX  EXEMPTIONS;  OR  (V) RELIES ON STATE OR LOCAL
GOVERNMENT EMPLOYEES OR STAFF OF A PUBLIC AUTHORITY  FOR  ADMINISTRATIVE
OR OPERATIONAL SUPPORT; OR (E) an affiliate of such local authority.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09600-01-1
              

S. 4451                             2

  S  2. Section 5 of the public authorities law, as added by chapter 506
of the laws of 2009, is amended to read as follows:
  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 APPOINT EMPLOYEES OF
THE AUTHORITIES BUDGET OFFICE AND PRESCRIBE THEIR POWERS AND DUTIES  AND
FIX  THEIR  COMPENSATION  WITHIN  THE AMOUNTS APPROPRIATED THEREFOR. The
director may be removed by the governor only after notice  and  opportu-
nity 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  3.  Paragraphs  (i)  and  (j)  of subdivision 2 of section 6 of the
public authorities law, as added by chapter 506 of the laws of 2009, are
amended and a new paragraph (k) is added to read as follows:
  (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; [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[.]; AND
  (K) DETERMINE WHETHER ENTITIES OPERATING WITHIN  NEW  YORK  STATE  ARE
PUBLIC AUTHORITIES AS SET FORTH IN SECTION TWO OF THIS ARTICLE.
  S  4.  The public authorities law is amended by adding a new section 8
to read as follows:
  S 8. AUTHORITIES BUDGET OFFICE BOARD OF  DIRECTORS.  THERE  IS  HEREBY
CREATED  THE  AUTHORITIES  BUDGET  OFFICE BOARD OF DIRECTORS WHICH SHALL
CONSIST OF FIVE MEMBERS. ONE MEMBER  EACH  SHALL  BE  APPOINTED  BY  THE
GOVERNOR,  ATTORNEY  GENERAL, STATE COMPTROLLER, SPEAKER OF THE ASSEMBLY
AND SENATE MAJORITY LEADER. EACH DIRECTOR SHALL SERVE FOR A TERM OF FOUR
YEARS. THE BOARD SHALL ELECT THE CHAIRMAN OF  THE  BOARD  FROM  ITS  OWN
MEMBERS.  THE BOARD SHALL ESTABLISH ITS OWN BYLAWS. THE FUNCTIONS OF THE
BOARD SHALL BE TO:
  (A) OVERSEE THE CONDUCT OF THE AUTHORITIES BUDGET OFFICE AND  EVALUATE
WHETHER  THE  AUTHORITIES  BUDGET  OFFICE  IS BEING PROPERLY MANAGED AND
MEETING ITS STATUTORY RESPONSIBILITY TO ACT IN AN INDEPENDENT AND EFFEC-
TIVE MANNER;
  (B) INSTRUCT, WHERE APPROPRIATE, THE DIRECTOR AND SENIOR  OFFICERS  OF
THE AUTHORITIES BUDGET OFFICE, AND REVIEW THEIR ACTIONS;
  (C) PROVIDE ADVICE AND COUNSEL TO THE DIRECTOR AND SENIOR OFFICERS;
  (D)  REVIEW  AND  APPROVE  MAJOR  POLICY  AND ADMINISTRATIVE DECISIONS
RESPECTING THE OPERATIONS AND RESPONSIBILITIES OF THE AUTHORITIES BUDGET
OFFICE;

S. 4451                             3

  (E) REVIEW AND APPROVE THE FINANCIAL AND OPERATING  DISCLOSURE  STATE-
MENTS,  BUDGETARY  SUBMISSIONS  AND  REPORTS  OF  THE AUTHORITIES BUDGET
OFFICE;
  (F)  REPORT  AT  THE  END  OF  EACH SIX MONTH PERIOD BEGINNING ON JUNE
FIRST, TWO THOUSAND ELEVEN TO THE GOVERNOR AND THE MAJORITY AND MINORITY
LEADERS OF THE SENATE AND ASSEMBLY, ON ITS OVERSIGHT RESPONSIBILITIES AS
PROVIDED IN PARAGRAPHS (A) THROUGH (E) OF THIS SECTION; AND
  (G) IN THE EVENT OF A VACANCY, RECOMMEND TO THE  GOVERNOR  A  LIST  OF
THREE  OR MORE CANDIDATES FOR THE OFFICE OF DIRECTOR. THE GOVERNOR SHALL
SELECT HIS NOMINEE FROM SUCH LIST.
  S 5. Paragraphs (a) and (b) of subdivision  1  and  subdivision  2  of
section 2800 of the public authorities law, as amended by chapter 506 of
the laws of 2009, are amended to read as follows:
  (a)  For  the purpose of furnishing the state with systematic informa-
tion 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  gover-
nor,  the  chairman  and  ranking  minority member of the senate finance
committee, the chairman and ranking minority member of the assembly ways
and means committee, 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 IN A MANNER AND FORM TO  BE
DETERMINED  BY  THE  AUTHORITIES  BUDGET  OFFICE: (1) its operations and
accomplishments; (2) its financial reports, including (i) audited finan-
cials in accordance with all applicable regulations and following gener-
ally 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 bond rating agencies and notice
of  changes  in  such  ratings, and (v) long-term liabilities, including
leases and employee benefit plans; (3) its mission statement  and  meas-
urements 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. Addi-
tionally, the debt schedule shall also include all refinancings,  calls,
refundings, defeasements and interest rate exchange or other such agree-
ments,  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, AND allowance [and/or] PAID  TO  SUCH  PERSON,
AND 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 all real
property of such authority having an  estimated  fair  market  value  in
excess  of  fifteen  thousand  dollars  that  the  authority acquires or
disposes of during such period.  The  report  shall  contain  the  price

S. 4451                             4

received or paid by the authority and the name of the purchaser, LESSEE,
LESSOR  or  seller  for  all such property sold, LEASED or bought by the
authority during such period; (8) such authority's code of  ethics;  (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)]  (11)  a
description  of the total amounts of assets, services or both assets and
services bought or sold without competitive bidding, including  (i)  the
nature  of  those assets and services, (ii) the names of the counterpar-
ties, and (iii) where the contract price for  assets  purchased  exceeds
fair  market  value, or where the contract price for assets sold is less
than fair market value, a detailed explanation of the justification  for
making  the  purchase or sale without competitive bidding, and a certif-
ication by the chief executive officer and chief  financial  officer  of
the  public authority that they have reviewed the terms of such purchase
or sale and determined that it complies with applicable law and procure-
ment guidelines; and [(17)] (12) a description of any  material  pending
litigation  in  which  the  authority  is involved as a party during the
reporting year, except that no hospital need disclose information  about
pending malpractice claims beyond the existence of such claims.
  (b)  Each state authority shall make accessible to the public, via its
official or shared internet web site, (I)  documentation  pertaining  to
its  mission[,]  AND  current activities[,]; (II) ITS most recent annual
REPORT AND financial [reports] STATEMENTS,  AND  current  [year]  budget
[and]  REPORTS;  (III)  its most recent independent audit report AND ANY
OTHER REPORT PROVIDED TO  THE  AUTHORITIES  BUDGET  OFFICE  unless  such
information is covered by subdivision two of section eighty-seven of the
public officers law; (IV) BIOGRAPHICAL INFORMATION, NOT INCLUDING CONFI-
DENTIAL  PERSONAL INFORMATION, PERTAINING TO THE PROFESSIONAL QUALIFICA-
TIONS AND EXPERTISE FOR ALL DIRECTORS AND OFFICERS; (V) A  COPY  OF  THE
LEGISLATION  THAT  FORMS  THE  STATUTORY  BASIS OF THE AUTHORITY; (VI) A
DESCRIPTION OF THE AUTHORITY AND  ITS  BOARD  STRUCTURE,  INCLUDING  (A)
NAMES  OF  COMMITTEES  AND COMMITTEE MEMBERS, (B) MINUTES OF BOARD MEET-
INGS, (C) DESCRIPTIONS OF MAJOR AUTHORITY UNITS  AND  SUBSIDIARIES,  (D)
NUMBER  OF  EMPLOYEES AND STAFF; (VII) AN ORGANIZATION CHART; (VIII) ITS
CHARTER, IF ANY, AND A COPY OF ITS CURRENT BY-LAWS; (IX)  A  LISTING  OF
MATERIAL  CHANGES  IN OPERATIONS AND PROGRAMS DURING THE REPORTING YEAR;
AND (X) ANY OTHER INFORMATION AS MAY  BE  REQUIRED  BY  THE  AUTHORITIES
BUDGET OFFICE.
  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 authorities budget office, within ninety  days
after  the  end  of  its  fiscal year, a complete and detailed report or

S. 4451                             5

reports setting forth IN A MANNER AND  FORM  TO  BE  DETERMINED  BY  THE
AUTHORITIES  BUDGET OFFICE:  (1) its operations and accomplishments; (2)
its financial reports, including (i) audited  financials  in  accordance
with   all  applicable  regulations  and  following  generally  accepted
accounting principles as defined in subdivision ten of  section  two  of
the state finance law, (ii) grants 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 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, AND allowance  [and/or]  PAID  TO  SUCH  PERSON,  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 all real property of such author-
ity having an estimated fair market value in excess of fifteen  thousand
dollars  that  the authority acquires or disposes of during such period.
The report shall contain the price received or paid by the authority and
the name of the purchaser, LESSEE, LESSOR or seller for all such proper-
ty sold, LEASED or bought by the authority during such period; (8)  such
authority's  code  of  ethics; (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,  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)] (11) a description of the
total  amounts of assets, services or both assets and 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 for assets purchased exceeds fair market value,

S. 4451                             6

or where the contract price for assets sold is  less  than  fair  market
value,  a  detailed  explanation  of  the  justification  for making the
purchase or sale without competitive bidding, and a certification by the
chief  executive  officer  and  chief  financial  officer  of the public
authority that they have reviewed the terms of such purchase or sale and
determined that it complies with applicable law and  procurement  guide-
lines;  and [(17)] (12) a description of any material pending litigation
in which the authority is involved as a party during the reporting year,
except that no provider of medical services  need  disclose  information
about pending malpractice claims beyond the existence of such claims.
  (b)  Each local authority shall make accessible to the public, via its
official or shared internet web site, (I)  documentation  pertaining  to
its  mission[,]  AND  current activities[,]; (II) ITS most recent annual
REPORT AND financial [reports] STATEMENTS,  AND  current  [year]  budget
[and]  REPORTS;  (III)  its most recent independent audit report AND ANY
OTHER REPORT PROVIDED TO  THE  AUTHORITIES  BUDGET  OFFICE  unless  such
information is covered by subdivision two of section eighty-seven of the
public officers law; (IV) BIOGRAPHICAL INFORMATION, NOT INCLUDING CONFI-
DENTIAL  PERSONAL INFORMATION, PERTAINING TO THE PROFESSIONAL QUALIFICA-
TIONS AND EXPERTISE FOR ALL DIRECTORS AND OFFICERS; (V) A  COPY  OF  THE
LEGISLATION  THAT  FORMS  THE  STATUTORY  BASIS OF THE AUTHORITY; (VI) A
DESCRIPTION OF THE AUTHORITY AND  ITS  BOARD  STRUCTURE,  INCLUDING  (A)
NAMES  OF  COMMITTEES  AND COMMITTEE MEMBERS, (B) MINUTES OF BOARD MEET-
INGS, (C) DESCRIPTIONS OF MAJOR AUTHORITY UNITS  AND  SUBSIDIARIES,  (D)
NUMBER  OF  EMPLOYEES AND STAFF; (VII) AN ORGANIZATION CHART; (VIII) ITS
CHARTER, IF ANY, AND A COPY OF ITS CURRENT BY-LAWS; (IX)  A  LISTING  OF
MATERIAL  CHANGES  IN OPERATIONS AND PROGRAMS DURING THE REPORTING YEAR;
AND (X) ANY OTHER INFORMATION AS MAY  BE  REQUIRED  BY  THE  AUTHORITIES
BUDGET OFFICE.
  S  6.  Subdivision  3 of section 2801 of the public authorities law is
REPEALED and subdivisions 1 and 2, as amended by chapter 506 of the laws
of 2009, 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,  the
chair  and  ranking minority member of the senate finance committee, 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] THIR-
TY days before the commencement of its fiscal year, in the form [submit-
ted  to  its  members or trustees,] DETERMINED BY THE AUTHORITIES BUDGET
OFFICE, AN ADOPTED BUDGET PLAN OF AT LEAST SIX YEARS AND budget informa-
tion on operations and capital construction setting forth the  estimated
receipts  and  expenditures  for the next fiscal year [and], the current
fiscal year, AND THE NEXT THREE FISCAL YEARS, 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  authorities  budget office for their information,
annually not [more than ninety days and not less than sixty] THIRTY days
before the commencement of its fiscal year, in the  form  [submitted  to
its  members  or trustees,] DETERMINED BY THE AUTHORITIES BUDGET OFFICE,

S. 4451                             7

AN ADOPTED BUDGET PLAN OF AT LEAST SIX YEARS AND 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  NEXT  THREE  FISCAL  YEARS, AND the actual receipts and
expenditures for the last completed fiscal year.
  S 7. Section 2806 of the public authorities law is REPEALED.
  S 8. The opening paragraph of subdivision 2 of  section  2825  of  the
public  authorities  law, as amended by chapter 174 of the laws of 2010,
is amended to read as follows:
  Except for members who serve as members by virtue of holding  a  civil
office of the state OR MUNICIPAL GOVERNMENT, the majority of the remain-
ing  members  of  the  governing  body of every state or local authority
shall be independent members; provided,  however,  that  this  provision
shall apply to appointments made on or after the effective date of chap-
ter 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 and further, shall consider the
prospective  diversity  of  the members of a state authority when making
their determinations to appoint any member. For  the  purposes  of  this
section, an independent member is one who:
  S  9.  Subdivisions  1 and 8 of section 2879 of the public authorities
law, as amended by chapter 564 of the laws of  1988,  paragraph  (a)  of
subdivision  8  as amended and such subdivision as renumbered by chapter
844 of the laws of 1992, are amended to read as follows:
  1. Every STATE AND LOCAL public authority [and public  benefit  corpo-
ration,  a  majority  of  the members of which consist of persons either
appointed by the governor or who serve as members by virtue of holding a
civil office of the state, or a combination thereof, (such  entities  to
be  hereinafter  in  this  section  referred to as "corporation")] shall
adopt by resolution comprehensive guidelines  which  detail  the  corpo-
ration's  operative policy and instructions regarding the use, awarding,
monitoring and reporting of procurement contracts.  Guidelines  approved
by the corporation shall be annually reviewed and approved by the corpo-
ration.
  8.  (a)  Each  [corporation]  STATE  AND  LOCAL PUBLIC AUTHORITY shall
[annually] submit WITHIN NINETY DAYS OF THE END OF ITS FISCAL  YEAR  its
report on procurement contracts to the [division of the budget] AUTHORI-
TIES  BUDGET  OFFICE  and  copies thereof to the department of audit and
control, the department of  economic  development,  the  senate  finance
committee and the assembly ways and means committee.
  (b)  Each corporation shall make available to the public copies of its
report on procurement contracts upon reasonable request therefor.
  S 10. Subdivision 3 of section 2896 of the public authorities law,  as
amended  by  chapter  506  of  the  laws  of 2009, is amended to read as
follows:
  3. a. Each STATE AND LOCAL public authority shall [publish,  not  less
frequently  than  annually] PREPARE WITHIN NINETY DAYS OF THE END OF ITS
FISCAL  YEAR  AS  PART  OF  THE  ANNUAL  REPORT  PURSUANT   TO   SECTION
TWENTY-EIGHT HUNDRED OF THIS ARTICLE, a report listing all real property
of  the  public  authority.    Such report shall 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 AND SUCH OTHER INFORMATION AS
REQUIRED BY THE AUTHORITIES BUDGET OFFICE.

S. 4451                             8

  b. The public authority shall deliver copies of  such  report  to  the
comptroller,  the  director  of  the budget, the commissioner of general
services, the legislature and the authorities budget office.
  S  11.  Paragraphs (a) and (b) of subdivision 7 of section 2925 of the
public authorities law, as added by chapter 838 of the laws of 1983, are
amended to read as follows:
  (a) Each corporation, a majority of the members of  which  consist  of
persons  appointed  by the governor or who serve as members by virtue of
holding a civil office of the state, or  a  combination  thereof,  shall
[annually]  submit  WITHIN NINETY DAYS OF THE END OF ITS FISCAL YEAR its
investment report to the [division of  the  budget]  AUTHORITIES  BUDGET
OFFICE  and  copies  thereof to the department of audit and control, the
senate finance committee and the assembly ways and means committee.
  (b) Each corporation, other than a corporation  included  under  para-
graph  (a)  of  this  subdivision,  shall annually submit its investment
report to the chief executive officer and chief fiscal officer  of  each
municipality  for the benefit of which it was created and to the depart-
ment of audit and control AND THE AUTHORITIES BUDGET OFFICE.
  S 12. Subdivision 2 of section 561-a of the general municipal law,  as
added by chapter 681 of the laws of 1963, is amended to read as follows:
  2.  Within  [sixty] NINETY days after the close of the fiscal year, an
agency shall submit an annual report of its financial condition  to  the
commissioner,  THE  AUTHORITIES  BUDGET  OFFICE  and  to the state comp-
troller. The report shall be in  such  form  as  the  comptroller  shall
require.  The  commissioner  or  the  comptroller OR THE DIRECTOR OF THE
AUTHORITIES BUDGET OFFICE may require additional  information  from  the
agency or any officer thereof at any time.
  S  13.  Section  859 of the general municipal law, as added by chapter
692 of the laws of 1989, paragraph (b), the first  and  second  undesig-
nated  paragraphs and subparagraph (v) of paragraph (e) of subdivision 1
as amended by chapter 357 of the laws of 1993, paragraph (e) of subdivi-
sion 1 and subdivision 3 as added and subdivision 2 as amended by  chap-
ter  356 of the laws of 1993 and paragraph (f) of subdivision 1 as added
by section 28 of part A-3 of chapter 62 of the laws of 2003, is  amended
to read as follows:
  S  859. Financial records. 1. (a) Each agency shall maintain books and
records in such form as may be prescribed by the state comptroller.
  (b) Within ninety days following the close of its  fiscal  year,  each
agency  or authority shall prepare a financial statement for that fiscal
year in such form as may be prescribed by THE AUTHORITIES BUDGET  OFFICE
AND  the  state comptroller. Such statement shall be audited within such
ninety day period by  an  independent  certified  public  accountant  in
accordance  with  government  accounting  standards  established  by the
United States general accounting office. The audited financial statement
shall include supplemental schedules listing all  straight-lease  trans-
actions  and  bonds  and notes issued, outstanding or retired during the
applicable accounting period whether or not such bonds, notes or  trans-
actions  are  considered  obligations  of  the agency. For each issue of
bonds or notes such schedules shall provide the  name  of  each  project
financed  with  proceeds of each issue, and whether the project occupant
is a not-for-profit corporation, the name and address of each  owner  of
each project, the estimated amount of tax exemptions authorized for each
project,  the  purpose  for  which each bond or note was issued, date of
issue, interest rate at issuance and if variable the range  of  interest
rates  applicable,  maturity date, federal tax status of each issue, and
an estimate of the number of jobs created and retained by each  project.

S. 4451                             9

For  each  straight-lease  transaction, such schedules shall provide the
name of each project, and whether the project occupant is a not-for-pro-
fit corporation, the name and address of each owner of each project, the
estimated  amount  of  tax  exemptions  authorized for each project, the
purpose for which each transaction was made,  the  method  of  financial
assistance  utilized  by  the  project,  other  than  the tax exemptions
claimed by the project and an estimate of the number of jobs created and
retained by each project.
  (c) Within [thirty] NINETY days after  [completion]  THE  END  OF  THE
FISCAL  YEAR,  a copy of the audited financial statement shall be trans-
mitted to the commissioner of the department  of  economic  development,
THE  AUTHORITIES  BUDGET OFFICE, the state comptroller and the governing
body of the municipality for whose benefit the agency was created.
  (d) [An agency with no bonds or notes issued  or  outstanding  and  no
projects  during the applicable accounting period may apply to the state
comptroller for a waiver of the required  audited  financial  statement.
Application shall be made on such form as the comptroller may prescribe.
  (e)]  If  an  agency  or authority shall fail to file or substantially
complete, as determined by the state comptroller, the  financial  state-
ment  required  by  this  section,  the  state comptroller shall provide
notice to the agency or authority. The notice shall state the following:
  (i) that the failure to file a financial statement as  required  is  a
violation  of  this section, or in the case of an insufficient financial
statement, the manner in which  the  financial  statement  submitted  is
deficient;
  (ii)  that the agency or authority has thirty days to comply with this
section or provide an adequate written explanation to the comptroller of
the agency's or authority's reasons for the inability to comply; and
  (iii) that the agency's or authority's failure to provide  either  the
required  financial  statement or an adequate explanation will result in
the notification of the chief executive officer of the municipality  for
whose  benefit  the  agency  or  authority  was  created of the agency's
noncompliance with this section. Where  such  agency  or  authority  has
failed  to  file  the  required  statement,  the comptroller shall addi-
tionally notify the agency or authority that continued failure  to  file
the required statement may result in loss of the agency's or authority's
authority to provide exemptions from state taxes.
  (iv)  If  an  agency or authority after thirty days has failed to file
the required statement or the explanation  in  the  manner  required  by
subparagraph (i) of this paragraph, or provides an insufficient explana-
tion,  the  comptroller  shall notify the chief executive officer of the
municipality for whose benefit the agency or authority was  created  and
the  agency  of  the  agency's  or  authority's  noncompliance with this
section. Such notice from the state comptroller shall further  delineate
in  what  respect the agency or authority has failed to comply with this
section. If the agency or authority has  failed  to  file  the  required
statement, the notice shall additionally state that continued failure to
file  the  required  statement  may  result  in  loss of the agency's or
authority's authority to provide exemptions from state taxes.
  (v) If, thirty days after notification of the chief executive  officer
of  the  municipality  for  whose  benefit  the  agency or authority was
created of the agency's or  authority's  noncompliance,  the  agency  or
authority  fails  to  file the required statement, the comptroller shall
notify the chief executive officer of the municipality for whose benefit
that agency or authority was created and the agency or authority that if
such report is not provided  within  sixty  days,  that  the  agency  or

S. 4451                            10

authority  will no longer be authorized to provide exemptions from state
taxes.
  (vi)  If,  sixty  days after the notification required by subparagraph
(v) of this paragraph, the comptroller has  not  received  the  required
statement,  the agency or authority shall not offer financial assistance
which provides exemptions from state taxes until such  financial  state-
ment is filed and the comptroller shall so notify the agency or authori-
ty and the chief executive officer of the municipality for whose benefit
the  agency  was  created.  Provided, however, that nothing contained in
this paragraph shall be deemed to  modify  the  terms  of  any  existing
agreements.  THE COMPTROLLER SHALL PROVIDE THE AUTHORITIES BUDGET OFFICE
WITH NOTIFICATION THAT SUCH  AGENCY  OR  AUTHORITY  IS  PROHIBITED  FROM
OFFERING FINANCIAL ASSISTANCE THAT PROVIDES EXEMPTIONS FROM STATE TAXES.
  [(f)]  (E)  Within  thirty days after completion, a copy of an audited
financial statement which contains transactions of or bonds or notes  of
civic  facilities  as defined in paragraph (b) of THE FORMER subdivision
thirteen of section eight hundred fifty-four of this article,  shall  be
transmitted  by  the  agency to the commissioner of health, the chair of
the senate finance committee, the chair of the assembly ways  and  means
committee, the chair of the senate health committee and the chair of the
assembly health committee.
  2.  On or before September first of each year, the commissioner of the
department of economic development  shall  prepare  and  submit  to  the
governor,  speaker  of  the assembly, majority leader of the senate, THE
DIRECTOR OF THE AUTHORITIES BUDGET OFFICE, and the state comptroller,  a
report  setting  forth a summary of the significant trends in operations
and financing by agencies and authorities;  departures  from  acceptable
practices  by  agencies  and  authorities;  a compilation by type of the
bonds and notes outstanding; a compilation of all outstanding  straight-
lease  transactions; an estimate of the total number of jobs created and
retained by agency or authority  projects;  and  any  other  information
which in the opinion of the commissioner bears upon the discharge of the
statutory functions of agencies and authorities.
  3.  On or before April first, nineteen hundred ninety-six, the commis-
sioner shall submit to the director of the division of the  budget,  THE
DIRECTOR  OF  THE  AUTHORITIES BUDGET OFFICE, the temporary president of
the senate, the speaker of the assembly,  the  chairman  of  the  senate
finance  committee,  the chairman of the assembly ways and means commit-
tee, the chairman of the senate local government committee, the chairman
of the senate committee on  commerce,  economic  development  and  small
business,  the  chairman of the assembly committee on commerce, industry
and economic development, the chairman of the assembly local governments
committee [and], the chairman of the  assembly  real  property  taxation
committee,  THE  CHAIR OF THE SENATE COMMITTEE ON CORPORATIONS, AUTHORI-
TIES AND COMMISSIONS, AND THE CHAIR OF THE ASSEMBLY COMMITTEE ON  CORPO-
RATIONS,  AUTHORITIES AND COMMISSIONS an evaluation of the activities of
industrial development agencies and authorities in the state prepared by
an entity independent of the department. Such evaluation shall  identify
the  effect  of  agencies  and  authorities  on:  (a)  job  creation and
retention in  the  state,  including  the  types  of  jobs  created  and
retained;  (b) the value of tax exemptions provided by such agencies and
authorities; (c) the  value  of  payments  received  in  lieu  of  taxes
received  by municipalities and school districts as a result of projects
sponsored by such entities; (d) a summary of the types of projects  that
received  financial  assistance; (e) a summary of the types of financial
assistance provided by the agencies and authorities; (f)  a  summary  of

S. 4451                            11

criteria  for  evaluation  of projects used by agencies and authorities;
(g) a summary of tax exemption policies of agencies and authorities; and
(h) such other factors as may  be  relevant  to  an  assessment  of  the
performance  of  such agencies and authorities in creating and retaining
job opportunities for residents of the state. Such evaluation shall also
assess the process by which agencies and  authorities  grant  exemptions
from  state  taxes  and  make recommendations for the most efficient and
effective procedures for the use of  such  exemptions.  Such  evaluation
shall  further include any recommendations for changes in laws governing
the operations of industrial development agencies and authorities  which
would enhance the creation and retention of jobs in the state.
  S  14. Paragraph (a) of section 1411 of the not-for-profit corporation
law, as amended by chapter 847 of the laws of 1970, is amended  to  read
as follows:
  (a)  Purposes.
  This  section  shall  provide  an  additional  and alternate method of
incorporation or reincorporation of not-for-profit corporations for  any
of  the  purposes set forth in this paragraph and shall not be deemed to
alter, impair or diminish the purposes, rights, powers or privileges  of
any  corporation heretofore or hereafter incorporated under this section
or under the stock or business corporation laws.   Corporations  may  be
incorporated  or  reincorporated  under  this  section as not-for-profit
local development corporations operated for the  exclusively  charitable
or public purposes of relieving and reducing unemployment, promoting and
providing for additional and maximum employment, bettering and maintain-
ing job opportunities, instructing or training individuals to improve or
develop  their  capabilities  for  such  jobs,  carrying  on  scientific
research for the purpose of aiding a community or geographical  area  by
attracting  new  industry to the community or area or by encouraging the
development of, or retention of, an industry in the community  or  area,
and  lessening the burdens of government and acting in the public inter-
est, and any one or more counties, cities,  towns  or  villages  of  the
state,  or  any  combination  thereof,  or  the New York job development
authority in exercising its power under the public  authorities  law  to
encourage  the organization of local development corporations, may cause
such corporations to be incorporated by public officers or private indi-
viduals or reincorporated upon compliance with the requirements of  this
section,  and it is hereby found, determined and declared that in carry-
ing out said purposes and in exercising the powers  conferred  by  para-
graph  [(b)] (C) OF THIS SECTION such corporations will be performing an
essential governmental function. A LOCAL DEVELOPMENT CORPORATION  INCOR-
PORATED  OR  REINCORPORATED  FOR THE PURPOSES OF THIS PARAGRAPH THAT (I)
HAS ONE OR MORE BOARD MEMBERS APPOINTED  BY  A  COUNTY,  CITY,  TOWN  OR
VILLAGE  GOVERNMENT  OR  A  PUBLIC  AUTHORITY  OR  HAS ONE OR MORE BOARD
MEMBERS THAT SERVE BY VIRTUE OF HOLDING A CIVIL OFFICE  OF  A  MUNICIPAL
GOVERNMENT;  (II)  HAS  ISSUED  OR HAS THE AUTHORITY TO ISSUE TAX EXEMPT
DEBT; (III) ACCEPTS, ADMINISTERS AND MANAGES PUBLIC FUNDS  OR  FINANCIAL
ASSISTANCE;  (IV)  PROVIDES OR GRANTS STATE OR MUNICIPAL TAX EXEMPTIONS;
(V) RELIES ON STATE OR LOCAL GOVERNMENT EMPLOYEES OR STAFF OF  A  PUBLIC
AUTHORITY  FOR  ADMINISTRATIVE  OR  OPERATIONAL  SUPPORT;  OR (VI) IS AN
AFFILIATE OF A LOCAL PUBLIC AUTHORITY SHALL BE DEFINED AS A LOCAL PUBLIC
AUTHORITY FOR PURPOSES OF COMPLYING WITH THE REQUIREMENTS OF THE  PUBLIC
AUTHORITIES LAW.
  S 15.  This act shall take effect immediately.

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

                                 4451--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              April 6, 2011
                               ___________

Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
  when printed to be committed to the Committee on Corporations, Author-
  ities and Commissions -- committee discharged, bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to  amend the public authorities law, the general municipal law
  and the not-for-profit corporation law, in  relation  to  the  powers,
  duties  and  activities  of the authority budget office and to clarify
  entities subject to the authority of that office; and to repeal subdi-
  vision 3 of section 2801 and section 2806 of  the  public  authorities
  law relating thereto

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

  Section 1. Subdivision 2 of section 2 of the public  authorities  law,
as  added  by  chapter  766  of  the laws of 2005, is amended to read as
follows:
  2. "local authority" shall mean (a) a public authority or public bene-
fit corporation created by or existing under this chapter or  any  other
law of the state of New York whose members do not hold a civil office of
the  state,  are  not  appointed by the governor or are appointed by the
governor specifically upon the recommendation of the local government or
governments; (b) a not-for-profit corporation affiliated with, sponsored
by, or created by [a] ONE OR MORE STATE, county, city, town  or  village
[government] GOVERNMENTS OR LOCAL PUBLIC AUTHORITIES; (c) a local indus-
trial  developmental  agency  or authority or other local public benefit
corporation; [or] (d) A TYPE C NOT-FOR-PROFIT CORPORATION, AS DEFINED IN
SECTION TWO HUNDRED ONE OF THE NOT-FOR-PROFIT CORPORATION LAW  THAT  (I)
SUPPORTS,  MANAGES, MARKETS, FUNDS, OR IMPLEMENTS PROGRAMS AND PROJECTS,
OR ACQUIRES PUBLIC PROPERTY IN THE PUBLIC INTEREST, FOR THE  PURPOSE  OF
PROMOTING OR ACHIEVING ECONOMIC OR INDUSTRIAL DEVELOPMENT, JOB CREATION,
OR  JOB RETENTION; (II) RELIES IN WHOLE OR IN PART ON LOAN REPAYMENTS OR
PROJECT REVENUE FOR ITS OPERATIONS; (III) HAS THE AUTHORITY TO ISSUE TAX

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09600-03-1
              

S. 4451--A                          2

EXEMPT DEBT; (IV) APPROVES OR MAKES RECOMMENDATIONS FOR THE APPROVAL  OF
PUBLIC  FINANCIAL ASSISTANCE, INCLUDING PROVIDING LOANS FROM A REVOLVING
LOAN FUND FINANCED, IN WHOLE OR IN PART,  BY  FEDERAL,  STATE  OR  LOCAL
GOVERNMENT  FUNDS;  OR (V) RELIES ON STATE OR LOCAL GOVERNMENT EMPLOYEES
OR STAFF OF A LOCAL AUTHORITY FOR ADMINISTRATIVE OR OPERATIONAL SUPPORT;
OR (E) an affiliate of such local authority.
  S 2. Section 5 of the public authorities law, as added by chapter  506
of the laws of 2009, is amended to read as follows:
  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 APPOINT EMPLOYEES OF
THE AUTHORITIES BUDGET OFFICE AND PRESCRIBE THEIR POWERS AND DUTIES  AND
FIX  THEIR  COMPENSATION  WITHIN  THE AMOUNTS APPROPRIATED THEREFOR. The
director may be removed by the governor only after notice  and  opportu-
nity 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  3.  Paragraphs  (i)  and  (j)  of subdivision 2 of section 6 of the
public authorities law, as added by chapter 506 of the laws of 2009, are
amended and three new paragraphs (k), (l) and (m) are added to  read  as
follows:
  (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; [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[.];
  (K)  DETERMINE  WHETHER  ENTITIES  OPERATING WITHIN NEW YORK STATE ARE
STATE OR LOCAL AUTHORITIES AS SET FORTH IN SECTION TWO OF THIS ARTICLE;
  (L) ASSESS, AFTER NOTICE, FINES OR OTHER FINANCIAL  PENALTIES  ON  ANY
STATE  OR  LOCAL AUTHORITY THAT (I) FAILS TO FILE ANY REPORT REQUIRED BY
THE AUTHORITIES BUDGET OFFICE PURSUANT TO THIS CHAPTER, ON OR BEFORE THE
DAY DESIGNATED FOR THE FILING THEREOF; (II) SUBMITS  INACCURATE,  INCOM-
PLETE,  OR  MISLEADING  INFORMATION  THEREIN;  OR (III) INTENTIONALLY OR
UNINTENTIONALLY FAILS TO COMPLY WITH ANY  REQUIREMENT  OR  PROVISION  OF
THIS  CHAPTER;  PROVIDED  THAT  THE ASSESSMENT OF ANY FINES OR FINANCIAL
PENALTIES SHALL BE IN ACCORDANCE WITH RULES OR  REGULATIONS  PROMULGATED
BY  THE  AUTHORITIES BUDGET OFFICE; AND FURTHER PROVIDED THAT SUCH FINES
OR FINANCIAL PENALTIES SHALL BE FORFEITED TO THE PEOPLE  OF  THE  STATE;
AND  FURTHER  PROVIDED  THAT SUCH FINES OR FINANCIAL PENALTIES SHALL NOT
EXCEED ONE HUNDRED DOLLARS FOR EACH DAY  DURING  WHICH  SUCH  REPORT  IS
DELAYED OR WITHHELD, OR SUCH INACCURATE, INCOMPLETE OR MISLEADING INFOR-
MATION IS NOT CORRECTED, CERTIFIED AND SUBMITTED, OR SUCH INTENTIONAL OR
UNINTENTIONAL  ACTS  OF NONCOMPLIANCE ARE NOT CORRECTED, UNLESS THE TIME

S. 4451--A                          3

THEREFORE SHALL HAVE BEEN EXTENDED BY THE DIRECTOR  OF  THE  AUTHORITIES
BUDGET OFFICE FOR GOOD CAUSE SHOWN, IN HIS OR HER SOLE DISCRETION; AND
  (M)  REVIEW  ANY CONTRACT, SUB-CONTRACT, OR FINANCIAL TRANSACTION THAT
IS IN FURTHERANCE OF THE PUBLIC PURPOSE OR MISSION OF A STATE  OR  LOCAL
AUTHORITY,  OR FOR WORK PERFORMED, OR SERVICES RENDERED, TO OR ON BEHALF
OF ONE OR MORE COUNTY, CITY, TOWN OR VILLAGE  GOVERNMENTS  OR  STATE  OR
LOCAL  AUTHORITIES  IN  FURTHERANCE  OF THE PUBLIC PURPOSE OR MISSION OF
SUCH GOVERNMENTS OR AUTHORITIES, AND TO REVIEW DOCUMENTS ASSOCIATED WITH
SUCH CONTRACT OR FINANCIAL TRANSACTION.
  S 4.  The public authorities law is amended by adding a new section  8
to read as follows:
  S  8.  AUTHORITIES  BUDGET  OFFICE BOARD OF DIRECTORS. THERE IS HEREBY
CREATED THE AUTHORITIES BUDGET OFFICE BOARD  OF  DIRECTORS  WHICH  SHALL
CONSIST  OF  FIVE  MEMBERS.  ONE  MEMBER  EACH SHALL BE APPOINTED BY THE
GOVERNOR, ATTORNEY GENERAL, STATE COMPTROLLER, SPEAKER OF  THE  ASSEMBLY
AND SENATE MAJORITY LEADER. EACH DIRECTOR SHALL SERVE FOR A TERM OF FOUR
YEARS.  THE  BOARD  SHALL  ELECT  THE CHAIRMAN OF THE BOARD FROM ITS OWN
MEMBERS. THE BOARD SHALL ESTABLISH ITS OWN BYLAWS. THE FUNCTIONS OF  THE
BOARD SHALL BE TO:
  (A)  OVERSEE THE CONDUCT OF THE AUTHORITIES BUDGET OFFICE AND EVALUATE
WHETHER THE AUTHORITIES BUDGET OFFICE  IS  BEING  PROPERLY  MANAGED  AND
MEETING ITS STATUTORY RESPONSIBILITY TO ACT IN AN INDEPENDENT AND EFFEC-
TIVE MANNER;
  (B)  INSTRUCT,  WHERE APPROPRIATE, THE DIRECTOR AND SENIOR OFFICERS OF
THE AUTHORITIES BUDGET OFFICE, AND REVIEW THEIR ACTIONS;
  (C) PROVIDE ADVICE AND COUNSEL TO THE DIRECTOR AND SENIOR OFFICERS;
  (D) REVIEW AND  APPROVE  MAJOR  POLICY  AND  ADMINISTRATIVE  DECISIONS
RESPECTING THE OPERATIONS AND RESPONSIBILITIES OF THE AUTHORITIES BUDGET
OFFICE;
  (E)  REVIEW  AND APPROVE THE FINANCIAL AND OPERATING DISCLOSURE STATE-
MENTS, BUDGETARY SUBMISSIONS  AND  REPORTS  OF  THE  AUTHORITIES  BUDGET
OFFICE;
  (F)  REPORT  AT  THE  END  OF  EACH SIX MONTH PERIOD BEGINNING ON JUNE
FIRST, TWO THOUSAND ELEVEN TO THE GOVERNOR AND THE MAJORITY AND MINORITY
LEADERS OF THE SENATE AND ASSEMBLY, ON ITS OVERSIGHT RESPONSIBILITIES AS
PROVIDED IN PARAGRAPHS (A) THROUGH (E) OF THIS SECTION; AND
  (G) IN THE EVENT OF A VACANCY, RECOMMEND TO THE  GOVERNOR  A  LIST  OF
THREE  OR MORE CANDIDATES FOR THE OFFICE OF DIRECTOR. THE GOVERNOR SHALL
SELECT HIS NOMINEE FROM SUCH LIST.
  S 5. Paragraphs (a) and (b) of subdivision  1  and  subdivision  2  of
section 2800 of the public authorities law, as amended by chapter 506 of
the laws of 2009, are amended to read as follows:
  (a)  For  the purpose of furnishing the state with systematic informa-
tion 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  gover-
nor,  the  chairman  and  ranking  minority member of the senate finance
committee, the chairman and ranking minority member of the assembly ways
and means committee, 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 IN A MANNER AND FORM TO  BE
DETERMINED  BY  THE  AUTHORITIES  BUDGET  OFFICE: (1) its operations and
accomplishments; (2) its financial reports, including (i) audited finan-
cials in accordance with all applicable regulations and following gener-
ally accepted accounting principles as defined  in  subdivision  ten  of
section  two  of the state finance law, (ii) grant and subsidy programs,

S. 4451--A                          4

(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 mission statement and meas-
urements 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.  Addi-
tionally,  the debt schedule shall also include all refinancings, calls,
refundings, defeasements and interest rate exchange or other such agree-
ments, 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,  AND allowance [and/or] PAID TO SUCH PERSON,
AND 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  all  real
property  of  such  authority  having  an estimated fair market value in
excess of fifteen  thousand  dollars  that  the  authority  acquires  or
disposes  of  during  such  period.  The  report shall contain the price
received or paid by the authority and the name of the purchaser, LESSEE,
LESSOR or seller for all such property sold, LEASED  or  bought  by  the
authority  during  such period; (8) such authority's code of ethics; (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)] (11) a
description of the total amounts of assets, services or both assets  and
services  bought  or sold without competitive bidding, including (i) the
nature of those assets and services, (ii) the names of  the  counterpar-
ties,  and  (iii)  where the contract price for assets purchased exceeds
fair market value, or where the contract price for assets sold  is  less
than  fair market value, a detailed explanation of the justification for
making the purchase or sale without competitive bidding, and  a  certif-
ication  by  the  chief executive officer and chief financial officer of
the public authority that they have reviewed the terms of such  purchase
or sale and determined that it complies with applicable law and procure-

S. 4451--A                          5

ment  guidelines;  and [(17)] (12) a description of any material pending
litigation in which the authority is involved  as  a  party  during  the
reporting  year, except that no hospital need disclose information about
pending malpractice claims beyond the existence of such claims.
  (b)  Each state authority shall make accessible to the public, via its
official or shared internet web site, (I)  documentation  pertaining  to
its  mission[,]  AND  current activities[,]; (II) ITS most recent annual
REPORT AND financial [reports] STATEMENTS,  AND  current  [year]  budget
[and]  REPORTS;  (III)  its most recent independent audit report AND ANY
OTHER REPORT PROVIDED TO  THE  AUTHORITIES  BUDGET  OFFICE  unless  such
information is covered by subdivision two of section eighty-seven of the
public officers law; (IV) BIOGRAPHICAL INFORMATION, NOT INCLUDING CONFI-
DENTIAL  PERSONAL INFORMATION, PERTAINING TO THE PROFESSIONAL QUALIFICA-
TIONS AND EXPERTISE FOR ALL DIRECTORS AND OFFICERS; (V) A  COPY  OF  THE
LEGISLATION  THAT  FORMS  THE  STATUTORY  BASIS OF THE AUTHORITY; (VI) A
DESCRIPTION OF THE AUTHORITY AND  ITS  BOARD  STRUCTURE,  INCLUDING  (A)
NAMES  OF  COMMITTEES  AND COMMITTEE MEMBERS, (B) MINUTES OF BOARD MEET-
INGS, (C) DESCRIPTIONS OF MAJOR AUTHORITY UNITS  AND  SUBSIDIARIES,  (D)
NUMBER  OF  EMPLOYEES AND STAFF; (VII) AN ORGANIZATION CHART; (VIII) ITS
CHARTER, IF ANY, AND A COPY OF ITS CURRENT BY-LAWS; (IX)  A  LISTING  OF
MATERIAL  CHANGES  IN OPERATIONS AND PROGRAMS DURING THE REPORTING YEAR;
AND (X) ANY OTHER INFORMATION AS MAY  BE  REQUIRED  BY  THE  AUTHORITIES
BUDGET OFFICE.
  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
officer, the chairperson of the legislative body of the local government
or  local  governments  and the authorities budget office, within ninety
days after the end of its fiscal year, a complete and detailed report or
reports setting forth IN A MANNER AND  FORM  TO  BE  DETERMINED  BY  THE
AUTHORITIES  BUDGET OFFICE:  (1) its operations and accomplishments; (2)
its financial reports, including (i) audited  financials  in  accordance
with   all  applicable  regulations  and  following  generally  accepted
accounting principles as defined in subdivision ten of  section  two  of
the state finance law, (ii) grants 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 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, AND allowance  [and/or]  PAID  TO  SUCH  PERSON,  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

S. 4451--A                          6

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 all real property of such author-
ity having an estimated fair market value in excess of fifteen  thousand
dollars  that  the authority acquires or disposes of during such period.
The report shall contain the price received or paid by the authority and
the name of the purchaser, LESSEE, LESSOR or seller for all such proper-
ty sold, LEASED or bought by the authority during such period; (8)  such
authority's  code  of  ethics; (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,  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)] (11) a description of the
total  amounts of assets, services or both assets and 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 for assets purchased exceeds fair market value,
or where the contract price for assets sold is  less  than  fair  market
value,  a  detailed  explanation  of  the  justification  for making the
purchase or sale without competitive bidding, and a certification by the
chief executive officer  and  chief  financial  officer  of  the  public
authority that they have reviewed the terms of such purchase or sale and
determined  that  it complies with applicable law and procurement guide-
lines; and [(17)] (12) a description of any material pending  litigation
in which the authority is involved as a party during the reporting year,
except  that  no  provider of medical services need disclose information
about pending malpractice claims beyond the existence of such claims.
  (b) Each local authority shall make accessible to the public, via  its
official  or  shared  internet web site, (I) documentation pertaining to
its mission[,] AND current activities[,]; (II) ITS  most  recent  annual
REPORT  AND  financial  [reports]  STATEMENTS, AND current [year] budget
[and] REPORTS; (III) its most recent independent audit  report  AND  ANY
OTHER  REPORT  PROVIDED  TO  THE  AUTHORITIES  BUDGET OFFICE unless such
information is covered by subdivision two of section eighty-seven of the
public officers law; (IV) BIOGRAPHICAL INFORMATION, NOT INCLUDING CONFI-
DENTIAL PERSONAL INFORMATION, PERTAINING TO THE PROFESSIONAL  QUALIFICA-
TIONS  AND  EXPERTISE  FOR ALL DIRECTORS AND OFFICERS; (V) A COPY OF THE
LEGISLATION THAT FORMS THE STATUTORY BASIS  OF  THE  AUTHORITY;  (VI)  A
DESCRIPTION  OF  THE  AUTHORITY  AND  ITS BOARD STRUCTURE, INCLUDING (A)
NAMES OF COMMITTEES AND COMMITTEE MEMBERS, (B) MINUTES  OF  BOARD  MEET-
INGS,  (C)  DESCRIPTIONS  OF MAJOR AUTHORITY UNITS AND SUBSIDIARIES, (D)
NUMBER OF EMPLOYEES AND STAFF; (VII) AN ORGANIZATION CHART;  (VIII)  ITS
CHARTER,  IF  ANY,  AND A COPY OF ITS CURRENT BY-LAWS; (IX) A LISTING OF
MATERIAL CHANGES IN OPERATIONS AND PROGRAMS DURING THE  REPORTING  YEAR;

S. 4451--A                          7

AND  (X)  ANY  OTHER  INFORMATION  AS MAY BE REQUIRED BY THE AUTHORITIES
BUDGET OFFICE.
  S  6.  Subdivision  3 of section 2801 of the public authorities law is
REPEALED and subdivisions 1 and 2, as amended by chapter 506 of the laws
of 2009, 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,  the
chair  and  ranking minority member of the senate finance committee, 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] THIR-
TY days before the commencement of its fiscal year, in the form [submit-
ted  to  its  members or trustees,] DETERMINED BY THE AUTHORITIES BUDGET
OFFICE, AN ADOPTED BUDGET PLAN OF AT LEAST SIX YEARS AND budget informa-
tion on operations and capital construction setting forth the  estimated
receipts  and  expenditures  for the next fiscal year [and], the current
fiscal year, AND THE NEXT THREE FISCAL YEARS, 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  authorities  budget office for their information,
annually [not more than ninety days and not less than sixty] THIRTY days
before the commencement of its fiscal year, in the  form  [submitted  to
its  members  or trustees,] DETERMINED BY THE AUTHORITIES BUDGET OFFICE,
AN ADOPTED BUDGET PLAN OF AT LEAST SIX YEARS AND 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 NEXT THREE FISCAL  YEARS,  AND  the  actual  receipts  and
expenditures for the last completed fiscal year.
  S  7.  Subdivisions  2 and 7 of section 2802 of the public authorities
law, subdivision 2 as amended by chapter 506 of the  laws  of  2009  and
subdivision  7  as added by chapter 766 of the laws of 2005, are 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]
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 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 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.
  7. Notwithstanding any provision of law to the  contrary,  a  [public]
STATE  OR  LOCAL  authority  may  exempt  information from disclosure or
report, if the counsel of such authority deems that such information  is

S. 4451--A                          8

covered  by  subdivision two of section eighty-seven of the public offi-
cers law.
  S 8. Section 2806 of the public authorities law is REPEALED.
  S  9.  The  opening  paragraph of subdivision 2 of section 2825 of the
public authorities law, as amended by chapter 174 of the laws  of  2010,
is amended to read as follows:
  Except  for  members who serve as members by virtue of holding a civil
office of the state OR MUNICIPAL GOVERNMENT, the majority of the remain-
ing members of the governing body of  every  state  or  local  authority
shall  be  independent  members;  provided, however, that this provision
shall apply to appointments made on or after the effective date of chap-
ter 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 and further, shall consider the
prospective diversity of the members of a state  authority  when  making
their  determinations  to  appoint  any member. For the purposes of this
section, an independent member is one who:
  S 10. Subdivisions 1 and 8 of section 2879 of the  public  authorities
law,  as  amended  by  chapter 564 of the laws of 1988, paragraph (a) of
subdivision 8 as amended and such subdivision as renumbered  by  chapter
844 of the laws of 1992, are amended to read as follows:
  1. Every [public] STATE AND LOCAL authority [and public benefit corpo-
ration,  a  majority  of  the members of which consist of persons either
appointed by the governor or who serve as members by virtue of holding a
civil office of the state, or a combination thereof, (such  entities  to
be  hereinafter  in  this  section  referred to as "corporation")] shall
adopt by resolution comprehensive guidelines  which  detail  the  corpo-
ration's  operative policy and instructions regarding the use, awarding,
monitoring and reporting of procurement contracts.  Guidelines  approved
by the corporation shall be annually reviewed and approved by the corpo-
ration.
  8.  (a)  Each [corporation] STATE AND LOCAL AUTHORITY shall [annually]
submit WITHIN NINETY DAYS OF THE END OF ITS FISCAL YEAR  its  report  on
procurement contracts to the [division of the budget] AUTHORITIES BUDGET
OFFICE  and  copies  thereof to the department of audit and control, the
department of economic development, the senate finance committee and the
assembly ways and means committee.
  (b) Each corporation shall make available to the public copies of  its
report on procurement contracts upon reasonable request therefor.
  S  11. Section 2827 of the public authorities law, as amended by chap-
ter 506 of the laws of 2009, is amended to read as follows:
  S 2827. Removal of authority members. Except as otherwise provided  in
this  chapter,  every member of every authority or commission heretofore
or hereafter continued or created by  this  chapter,  except  ex-officio
members,  that  is,  members whose membership results by virtue of their
incumbency of a public office, shall be removable by the public  officer
or  public  body  which  is  empowered  by  this chapter to appoint such
authority or commission member, for inefficiency,  breach  of  fiduciary
duty,  neglect  of duty or misconduct in office, provided, however, that
such member shall be given a copy of the  charges  against  him  and  an
opportunity  of  being  heard  in  person,  or by counsel, in his or her
defense upon not less than ten days' notice.  IF THE AUTHORITIES  BUDGET
OFFICE  RECOMMENDS  TO  THE  PUBLIC  OFFICER  OR  PUBLIC  BODY  WHICH IS
EMPOWERED TO APPOINT OFFICERS OR DIRECTORS OF A STATE OR LOCAL AUTHORITY
THE SUSPENSION OR DISMISSAL OF SUCH OFFICERS OR  DIRECTORS,  THE  PUBLIC

S. 4451--A                          9

OFFICER  OR  PUBLIC  BODY  SHALL NOTIFY THE AUTHORITIES BUDGET OFFICE IN
WRITING WITHIN THIRTY DAYS OF RECEIVING SUCH A RECOMMENDATION WHETHER OR
NOT SUCH RECOMMENDATION WILL BE ACCEPTED.
  S  12. Subdivision 3 of section 2896 of the public authorities law, as
amended by chapter 506 of the laws  of  2009,  is  amended  to  read  as
follows:
  3. a. Each [public] STATE AND LOCAL authority shall [publish, not less
frequently  than  annually] PREPARE WITHIN NINETY DAYS OF THE END OF ITS
FISCAL  YEAR  AS  PART  OF  THE  ANNUAL  REPORT  PURSUANT   TO   SECTION
TWENTY-EIGHT HUNDRED OF THIS ARTICLE, a report listing all real property
of  the  public  authority.    Such report shall 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 AND SUCH OTHER INFORMATION AS
REQUIRED BY THE AUTHORITIES BUDGET OFFICE.
  b. The [public] STATE OR LOCAL authority shall deliver copies of  such
report  to the comptroller, the director of the budget, the commissioner
of general services, the legislature and the authorities budget office.
  S 13. Paragraphs (a) and (b) of subdivision 7 of section 2925  of  the
public authorities law, as added by chapter 838 of the laws of 1983, are
amended to read as follows:
  (a)  Each  corporation,  a majority of the members of which consist of
persons appointed by the governor or who serve as members by  virtue  of
holding  a  civil  office  of the state, or a combination thereof, shall
[annually] submit WITHIN NINETY DAYS OF THE END OF ITS FISCAL  YEAR  its
investment  report  to  the  [division of the budget] AUTHORITIES BUDGET
OFFICE and copies thereof to the department of audit  and  control,  the
senate finance committee and the assembly ways and means committee.
  (b)  Each  corporation,  other than a corporation included under para-
graph (a) of this subdivision,  shall  annually  submit  its  investment
report  to  the chief executive officer and chief fiscal officer of each
municipality for the benefit of which it was created and to the  depart-
ment of audit and control AND THE AUTHORITIES BUDGET OFFICE.
  S  14. Subdivision 2 of section 561-a of the general municipal law, as
added by chapter 681 of the laws of 1963, is amended to read as follows:
  2. Within [sixty] NINETY days after the close of the fiscal  year,  an
agency  shall  submit an annual report of its financial condition to the
commissioner, THE AUTHORITIES BUDGET  OFFICE  and  to  the  state  comp-
troller.  The  report  shall  be  in  such form as the comptroller shall
require. The commissioner or the comptroller  OR  THE  DIRECTOR  OF  THE
AUTHORITIES  BUDGET  OFFICE  may require additional information from the
agency or any officer thereof at any time.
  S 15. Section 859 of the general municipal law, as  added  by  chapter
692  of  the  laws of 1989, paragraph (b), the first and second undesig-
nated paragraphs and subparagraph (v) of paragraph (e) of subdivision  1
as amended by chapter 357 of the laws of 1993, paragraph (e) of subdivi-
sion  1 and subdivision 3 as added and subdivision 2 as amended by chap-
ter 356 of the laws of 1993 and paragraph (f) of subdivision 1 as  added
by  section 28 of part A-3 of chapter 62 of the laws of 2003, is amended
to read as follows:
  S 859. Financial records. 1. (a) Each agency shall maintain books  and
records in such form as may be prescribed by the state comptroller.
  (b)  Within  ninety  days following the close of its fiscal year, each
agency or authority shall prepare a financial statement for that  fiscal
year  in such form as may be prescribed by THE AUTHORITIES BUDGET OFFICE

S. 4451--A                         10

AND the state comptroller. Such statement shall be audited  within  such
ninety  day  period  by  an  independent  certified public accountant in
accordance with  government  accounting  standards  established  by  the
United States general accounting office. The audited financial statement
shall  include  supplemental schedules listing all straight-lease trans-
actions and bonds and notes issued, outstanding or  retired  during  the
applicable  accounting period whether or not such bonds, notes or trans-
actions are considered obligations of the  agency.  For  each  issue  of
bonds  or  notes  such  schedules shall provide the name of each project
financed with proceeds of each issue, and whether the  project  occupant
is  a  not-for-profit corporation, the name and address of each owner of
each project, the estimated amount of tax exemptions authorized for each
project, the purpose for which each bond or note  was  issued,  date  of
issue,  interest  rate at issuance and if variable the range of interest
rates applicable, maturity date, federal tax status of each  issue,  and
an  estimate of the number of jobs created and retained by each project.
For each straight-lease transaction, such schedules  shall  provide  the
name of each project, and whether the project occupant is a not-for-pro-
fit corporation, the name and address of each owner of each project, the
estimated  amount  of  tax  exemptions  authorized for each project, the
purpose for which each transaction was made,  the  method  of  financial
assistance  utilized  by  the  project,  other  than  the tax exemptions
claimed by the project and an estimate of the number of jobs created and
retained by each project.
  (c) Within [thirty] NINETY days after  [completion]  THE  END  OF  THE
FISCAL  YEAR,  a copy of the audited financial statement shall be trans-
mitted to the commissioner of the department  of  economic  development,
THE  AUTHORITIES  BUDGET OFFICE, the state comptroller and the governing
body of the municipality for whose benefit the agency was created.
  (d) [An agency with no bonds or notes issued  or  outstanding  and  no
projects  during the applicable accounting period may apply to the state
comptroller for a waiver of the required  audited  financial  statement.
Application shall be made on such form as the comptroller may prescribe.
  (e)]  If  an  agency  or authority shall fail to file or substantially
complete, as determined by the state comptroller, the  financial  state-
ment  required  by  this  section,  the  state comptroller shall provide
notice to the agency or authority. The notice shall state the following:
  (i) that the failure to file a financial statement as  required  is  a
violation  of  this section, or in the case of an insufficient financial
statement, the manner in which  the  financial  statement  submitted  is
deficient;
  (ii)  that the agency or authority has thirty days to comply with this
section or provide an adequate written explanation to the comptroller of
the agency's or authority's reasons for the inability to comply; and
  (iii) that the agency's or authority's failure to provide  either  the
required  financial  statement or an adequate explanation will result in
the notification of the chief executive officer of the municipality  for
whose  benefit  the  agency  or  authority  was  created of the agency's
noncompliance with this section. Where  such  agency  or  authority  has
failed  to  file  the  required  statement,  the comptroller shall addi-
tionally notify the agency or authority that continued failure  to  file
the required statement may result in loss of the agency's or authority's
authority to provide exemptions from state taxes.
  (iv)  If  an  agency or authority after thirty days has failed to file
the required statement or the explanation  in  the  manner  required  by
subparagraph (i) of this paragraph, or provides an insufficient explana-

S. 4451--A                         11

tion,  the  comptroller  shall notify the chief executive officer of the
municipality for whose benefit the agency or authority was  created  and
the  agency  of  the  agency's  or  authority's  noncompliance with this
section.  Such notice from the state comptroller shall further delineate
in what respect the agency or authority has failed to comply  with  this
section.  If  the  agency  or  authority has failed to file the required
statement, the notice shall additionally state that continued failure to
file the required statement may  result  in  loss  of  the  agency's  or
authority's authority to provide exemptions from state taxes.
  (v)  If, thirty days after notification of the chief executive officer
of the municipality for  whose  benefit  the  agency  or  authority  was
created  of  the  agency's  or  authority's noncompliance, the agency or
authority fails to file the required statement,  the  comptroller  shall
notify the chief executive officer of the municipality for whose benefit
that agency or authority was created and the agency or authority that if
such  report  is  not  provided  within  sixty  days, that the agency or
authority will no longer be authorized to provide exemptions from  state
taxes.
  (vi)  If,  sixty  days after the notification required by subparagraph
(v) of this paragraph, the comptroller has  not  received  the  required
statement,  the agency or authority shall not offer financial assistance
which provides exemptions from state taxes until such  financial  state-
ment is filed and the comptroller shall so notify the agency or authori-
ty and the chief executive officer of the municipality for whose benefit
the  agency  was  created.  Provided, however, that nothing contained in
this paragraph shall be deemed to  modify  the  terms  of  any  existing
agreements.  THE COMPTROLLER SHALL PROVIDE THE AUTHORITIES BUDGET OFFICE
WITH NOTIFICATION THAT SUCH  AGENCY  OR  AUTHORITY  IS  PROHIBITED  FROM
OFFERING FINANCIAL ASSISTANCE THAT PROVIDES EXEMPTIONS FROM STATE TAXES.
  [(f)]  (E)  Within  thirty days after completion, a copy of an audited
financial statement which contains transactions of or bonds or notes  of
civic  facilities  as defined in paragraph (b) of THE FORMER subdivision
thirteen of section eight hundred fifty-four of this article,  shall  be
transmitted  by  the  agency to the commissioner of health, the chair of
the senate finance committee, the chair of the assembly ways  and  means
committee, the chair of the senate health committee and the chair of the
assembly health committee.
  2.  On or before September first of each year, the commissioner of the
department of economic development  shall  prepare  and  submit  to  the
governor,  speaker  of  the assembly, majority leader of the senate, THE
DIRECTOR OF THE AUTHORITIES BUDGET OFFICE, and the state comptroller,  a
report  setting  forth a summary of the significant trends in operations
and financing by agencies and authorities;  departures  from  acceptable
practices  by  agencies  and  authorities;  a compilation by type of the
bonds and notes outstanding; a compilation of all outstanding  straight-
lease  transactions; an estimate of the total number of jobs created and
retained by agency or authority  projects;  and  any  other  information
which in the opinion of the commissioner bears upon the discharge of the
statutory functions of agencies and authorities.
  3.  On or before April first, nineteen hundred ninety-six, the commis-
sioner shall submit to the director of the division of the  budget,  THE
DIRECTOR  OF  THE  AUTHORITIES BUDGET OFFICE, the temporary president of
the senate, the speaker of the assembly,  the  chairman  of  the  senate
finance  committee,  the chairman of the assembly ways and means commit-
tee, the chairman of the senate local government committee, the chairman
of the senate committee on  commerce,  economic  development  and  small

S. 4451--A                         12

business,  the  chairman of the assembly committee on commerce, industry
and economic development, the chairman of the assembly local governments
committee [and], the chairman of the  assembly  real  property  taxation
committee,  THE  CHAIR OF THE SENATE COMMITTEE ON CORPORATIONS, AUTHORI-
TIES AND COMMISSIONS, AND THE CHAIR OF THE ASSEMBLY COMMITTEE ON  CORPO-
RATIONS,  AUTHORITIES AND COMMISSIONS an evaluation of the activities of
industrial development agencies and authorities in the state prepared by
an entity independent of the department. Such evaluation shall  identify
the  effect  of  agencies  and  authorities  on:  (a)  job  creation and
retention in  the  state,  including  the  types  of  jobs  created  and
retained;  (b) the value of tax exemptions provided by such agencies and
authorities; (c) the  value  of  payments  received  in  lieu  of  taxes
received  by municipalities and school districts as a result of projects
sponsored by such entities; (d) a summary of the types of projects  that
received  financial  assistance; (e) a summary of the types of financial
assistance provided by the agencies and authorities; (f)  a  summary  of
criteria  for  evaluation  of projects used by agencies and authorities;
(g) a summary of tax exemption policies of agencies and authorities; and
(h) such other factors as may  be  relevant  to  an  assessment  of  the
performance  of  such agencies and authorities in creating and retaining
job opportunities for residents of the state. Such evaluation shall also
assess the process by which agencies and  authorities  grant  exemptions
from  state  taxes  and  make recommendations for the most efficient and
effective procedures for the use of  such  exemptions.  Such  evaluation
shall  further include any recommendations for changes in laws governing
the operations of industrial development agencies and authorities  which
would enhance the creation and retention of jobs in the state.
  S  16. Paragraph (a) of section 1411 of the not-for-profit corporation
law, as amended by chapter 847 of the laws of 1970, is amended  to  read
as follows:
  (a)  Purposes.
  This  section  shall  provide  an  additional  and alternate method of
incorporation or reincorporation of not-for-profit corporations for  any
of  the  purposes set forth in this paragraph and shall not be deemed to
alter, impair or diminish the purposes, rights, powers or privileges  of
any  corporation heretofore or hereafter incorporated under this section
or under the stock or business corporation laws.   Corporations  may  be
incorporated  or  reincorporated  under  this  section as not-for-profit
local development corporations operated for the  exclusively  charitable
or public purposes of relieving and reducing unemployment, promoting and
providing for additional and maximum employment, bettering and maintain-
ing job opportunities, instructing or training individuals to improve or
develop  their  capabilities  for  such  jobs,  carrying  on  scientific
research for the purpose of aiding a community or geographical  area  by
attracting  new  industry to the community or area or by encouraging the
development of, or retention of, an industry in the community  or  area,
and  lessening the burdens of government and acting in the public inter-
est, and any one or more counties, cities,  towns  or  villages  of  the
state,  or  any  combination  thereof,  or  the New York job development
authority in exercising its power under the public  authorities  law  to
encourage  the organization of local development corporations, may cause
such corporations to be incorporated by public officers or private indi-
viduals or reincorporated upon compliance with the requirements of  this
section,  and it is hereby found, determined and declared that in carry-
ing out said purposes and in exercising the powers  conferred  by  para-
graph  [(b)] (C) OF THIS SECTION such corporations will be performing an

S. 4451--A                         13

essential governmental function. A LOCAL DEVELOPMENT CORPORATION  INCOR-
PORATED  OR  REINCORPORATED  FOR THE PURPOSES OF THIS PARAGRAPH THAT (I)
SUPPORTS, MANAGES, MARKETS, FUNDS, OR IMPLEMENTS PROGRAMS AND  PROJECTS,
OR  ACQUIRES  PUBLIC PROPERTY IN THE PUBLIC INTEREST, FOR THE PURPOSE OF
PROMOTING OR ACHIEVING ECONOMIC OR INDUSTRIAL DEVELOPMENT, JOB CREATION,
OR JOB RETENTION; (II) RELIES IN WHOLE OR IN PART ON LOAN REPAYMENTS  OR
PROJECT REVENUE FOR ITS OPERATIONS; (III) HAS THE AUTHORITY TO ISSUE TAX
EXEMPT  DEBT; (IV) APPROVES OR MAKES RECOMMENDATIONS FOR THE APPROVAL OF
PUBLIC FINANCIAL ASSISTANCE, INCLUDING PROVIDING LOANS FROM A  REVOLVING
LOAN  FUND  FINANCED,  IN  WHOLE  OR IN PART, BY FEDERAL, STATE OR LOCAL
GOVERNMENT FUNDS; (V) RELIES ON STATE OR LOCAL GOVERNMENT  EMPLOYEES  OR
STAFF OF A LOCAL AUTHORITY FOR ADMINISTRATIVE OR OPERATIONAL SUPPORT; OR
(VI)  IS  AN  AFFILIATE OF A LOCAL AUTHORITY SHALL BE DEFINED AS A LOCAL
AUTHORITY FOR PURPOSES OF COMPLYING WITH THE REQUIREMENTS OF THE  PUBLIC
AUTHORITIES LAW.
  S 17. This act shall take effect immediately.