S T A T E   O F   N E W   Y O R K
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                                  3633

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            January 28, 2013
                               ___________

Introduced  by  M.  of  A.  MAGNARELLI -- (at request of the State Comp-
  troller) -- read once and referred to the Committee on  Local  Govern-
  ments

AN  ACT to amend the general municipal law, in relation to audits by the
  state comptroller of certain  organizations  controlled  by  municipal
  corporations and certain other government entities

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

  Section 1.  Section 34 of the general municipal  law,  as  amended  by
chapter 233 of the laws of 2006, is amended to read as follows:
  S  34.  Powers  and  duties  of examiners. 1. The comptroller and each
examiner of municipal affairs shall  have  power  to  examine  into  the
financial affairs of every such municipal corporation, industrial devel-
opment agency, district, [fire company as defined in section two hundred
four-a  of this chapter,] agency and activity [and], ANY FIRE COMPANY AS
DEFINED IN SECTION TWO HUNDRED FOUR-A OF THIS  CHAPTER,  AND  ANY  OTHER
ORGANIZATION,  EXCEPT  A  STATEWIDE  ASSOCIATION OF LOCAL GOVERNMENTS OR
LOCAL GOVERNMENT OFFICIALS, THAT IS CONTROLLED BY ONE  OR  MORE  OF  ANY
SUCH  MUNICIPAL CORPORATIONS, INDUSTRIAL DEVELOPMENT AGENCIES, DISTRICTS
OR AGENCIES.  AN ORGANIZATION SHALL BE DEEMED UNDER THE CONTROL  OF  ONE
OR   MORE   MUNICIPAL  CORPORATIONS,  INDUSTRIAL  DEVELOPMENT  AGENCIES,
DISTRICTS OR AGENCIES WHEN ONE OR MORE INDIVIDUALS WHO SERVE AS OFFICERS
OR EMPLOYEES OF ANY SUCH MUNICIPAL CORPORATION,  INDUSTRIAL  DEVELOPMENT
AGENCY,  DISTRICT  OR AGENCY: (A) SELECT EITHER A MAJORITY OF THE ORGAN-
IZATION'S HIGHEST POLICY-MAKING BODY OR THE ORGANIZATION'S CHIEF  EXECU-
TIVE  OFFICER;  (B)  CONSTITUTE  A  MAJORITY OF THE VOTING STRENGTH THAT
SELECTS EITHER A MAJORITY OF THE  ORGANIZATION'S  HIGHEST  POLICY-MAKING
BODY  OR  THE  ORGANIZATION'S  CHIEF EXECUTIVE OFFICER; OR (C) SERVE AS:
(I) A MAJORITY OF THE ORGANIZATION'S HIGHEST POLICY-MAKING BODY; (II) IN
HIS OR HER OFFICIAL CAPACITY, THE ORGANIZATION'S CHIEF  EXECUTIVE  OFFI-
CER;  OR  (III) IN HIS OR HER OFFICIAL CAPACITY, A PARTNER IN THE ORGAN-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04648-01-3
              

A. 3633                             2

IZATION. AN ORGANIZATION UNDER THE CONTROL  OF  ONE  OR  MORE  MUNICIPAL
CORPORATIONS,  INDUSTRIAL  DEVELOPMENT  AGENCIES,  DISTRICTS OR AGENCIES
SHALL ALSO INCLUDE ANY OTHER ORGANIZATION THAT  IS  CONTROLLED  BY  SUCH
ORGANIZATION.
  2. IN CONNECTION WITH ANY EXAMINATION AUTHORIZED BY SUBDIVISION ONE OF
THIS  SECTION,  THE  COMPTROLLER  AND EACH EXAMINER OF MUNICIPAL AFFAIRS
SHALL HAVE POWER to administer an oath to any person whose testimony may
be required, and to compel the appearance and attendance of such  person
for  the  purpose  of  any  such  examination and investigation, and the
production of books and papers. In the case of a municipal  corporation,
industrial  development agency, or school district, no such person shall
be compelled to appear or be examined elsewhere than within such munici-
pal corporation, industrial development agency, or school  district.  In
the  case  of  any district other than a school district, no such person
may be compelled to appear or be examined elsewhere than within the town
or one of the towns  in  which  such  district  or  portion  thereof  is
located. In the case of an urban renewal agency, no such person shall be
compelled  to  appear  or  be examined outside the municipal corporation
wherein such agency is established. In the case of a  fire  company,  no
such person shall be compelled to appear or be examined outside the area
served  by the company. In the case of an activity, no such person shall
be compelled to appear outside the area served by the activity.  IN  THE
CASE  OF  AN  ORGANIZATION  UNDER  THE  CONTROL OF ONE OR MORE MUNICIPAL
CORPORATIONS, INDUSTRIAL DEVELOPMENT AGENCIES, DISTRICTS OR AGENCIES, NO
SUCH PERSON SHALL BE COMPELLED TO APPEAR OR TO BE EXAMINED  OUTSIDE  THE
COUNTY IN WHICH THE ORGANIZATION HAS ITS PRINCIPAL HEADQUARTERS. Willful
false swearing in such examination shall be perjury and shall be punish-
able as such.
  3. FOR PURPOSES OF THIS SECTION, THE TERM "A MAJORITY OF THE ORGANIZA-
TION'S  HIGHEST  POLICY-MAKING  BODY" SHALL MEAN A MAJORITY OF THE WHOLE
NUMBER OF POSITIONS COMPRISING SUCH BODY, PROVIDED, HOWEVER, THAT IF THE
DOCUMENTS ESTABLISHING THE ORGANIZATION'S INTERNAL GOVERNANCE ALLOW SUCH
BODY TO ACT BY A MAJORITY OF A QUORUM,  THEN  SUCH  TERM  SHALL  MEAN  A
MAJORITY OF THE QUORUM.
  S 2. This act shall take effect immediately.