senate Bill S3518

2013-2014 Legislative Session

Clarifies the application of the accountability standards, open meetings law and freedom of information requirements to local development corporations

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to corporations, authorities and commissions
Feb 05, 2013 referred to corporations, authorities and commissions

Co-Sponsors

S3518 - Bill Details

Current Committee:
Law Section:
Public Authorities Law
Laws Affected:
Amd §§2800, 2801, 2895, 2896 & 2897, Pub Auth L; amd §51, Exec L; amd §§86 & 102, Pub Off L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S5399
2009-2010: S790

S3518 - Bill Texts

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Clarifies the application of the accountability standards, open meetings law and freedom of information requirements to local development corporations.

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BILL NUMBER:S3518

TITLE OF BILL: An act to amend the public authorities law, the execu-
tive law and the public officers law, in relation to clarifying the
application of the accountability standards, open meetings law and free-
dom of information requirements to local development corporations

PURPOSE: To extend the application of the accountability standards, open
meetings law and freedom of information requirements to local develop-
ment corporations (LDCs) so that there is full and public disclosure of
LDC activities.

SUMMARY OF PROVISIONS: Amends various sections of the public authori-
ties law to include local development corporations in the provisions of
the law governing accountability and transparency of public authorities.

EXISTING LAW: Under the current public authorities law, it is not clear
from the wording of the statute that LDCs are required to comply with
the open meetings law and freedom of information requirements. Due to
this ambiguity in drafting the law, the wording has been interpreted to
mean that LOC's do not have to comply with the open meetings law and
freedom of information requests.

JUSTIFICATION: Local Development Corporations (LDCs) enable counties,
cities, towns and villages to play a role in economic development. LOCs
allow local governments to assist businesses with specific types of
loans and grants, play a more flexible role in public-private partner-
ships, and even structure arrangements to purchase and develop real
estate. LDCs have unique powers in statute that allow them to receive
public property from local governments while avoiding any competitive
process for awarding contracts, as LOCs do not have to comply with
public procurement laws. LDCs are free to award contracts at will, which
potentially allows local government officials (who often appoint LDC
board members) to reward friends and political allies with these lucra-
tive contracts. These powers leave open the potential for abuse.

Full and public disclosure of LDC activities would prohibit government
officials from abusing powers associated with Local Development Corpo-
rations. Because LDCs are directly involved in the acquisition of public
property, a greater level of transparency must exist in order to keep
the public informed on the actions of their local government and govern-
ment created LDCs. The sunshine requirements pertaining to LDCs are
currently inadequate. The incomplete language of the public authorities
law as it relates to the accountability standards for local authorities,
warrants action. This legislation clarifies the law and prevents LDCs
from operating under a veil of unaccountability. It must be enacted so
that both LDCs and local governments are held responsible for their
decisions and actions surrounding local development projects.

LEGISLATIVE HISTORY: 2008 S7186 - Corporations/A10435 - Government
Operations 2009 S790 - Passed Senate 2010 S790 - Corporations/A2073 -
Passed Assembly 2011 S5399 - Corporations

FISCAL IMPLICATIONS: Not yet determined.

EFFECTIVE DATE: This act shall take effect on the one hundred twentieth
day after it shall have become a law; provided, however, that effective
immediately, the addition, amendment and/or repeal of any rule or regu-
lation necessary for the implementation of this act on its effective
date are authorized and directed to be made completed on or before such
effective date.

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

                                  3518

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 5, 2013
                               ___________

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

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

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

  Section 1. Paragraph (a) of subdivision  2  of  section  2800  of  the
public  authorities  law, as amended by chapter 506 of the laws of 2009,
is amended to read as follows:
  (a) Every local authority, [continued or created by  this  chapter  or
any  other  chapter  of  the  laws of the state of New York] PURSUANT TO
SECTION TWO OF THIS CHAPTER shall submit to the chief executive officer,
the chief fiscal officer, the chairperson of the legislative body of the
local government or local governments and the authorities budget office,
within ninety days after the end of its  fiscal  year,  a  complete  and
detailed  report or reports setting forth: (1) its operations and accom-
plishments; (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 chang-
es 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 issu-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07010-01-3

S. 3518                             2

ance, 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 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, allowance  and/or  benefits  provided  to  any
officer,  director  or employee in a decision making or managerial posi-
tion of such authority whose salary is in excess of one hundred thousand
dollars; (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  para-
graph;  (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 or seller for all such property sold 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, (iv) number of employees, and
(v) organizational chart; (12) its charter, if any, and by-laws; (13)  a
listing  of  material  changes  in  operations  and  programs during the
reporting year; (14) at a minimum a four-year financial plan,  including
(i) a current and projected capital budget, and (ii) an operating budget
report,  including  an  actual versus estimated budget, with an analysis
and measurement of financial and operating performance; (15)  its  board
performance  evaluations  provided, however, that such evaluations shall
not be subject to disclosure under article six of  the  public  officers
law; (16) a description of the total amounts of assets, services or both
assets  and services bought or sold without competitive bidding, includ-
ing (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 justifica-
tion  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  guidelines;  and (17) 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  exist-
ence of such claims.
  S  2.  Subdivision 2 of section 2801 of the public authorities law, as
amended by chapter 506 of the laws  of  2009,  is  amended  to  read  as
follows:

S. 3518                             3

  2. Local authorities. For the local authority fiscal year ending on or
after December thirty-first, two thousand seven and annually thereafter,
every  local  authority [heretofore or hereafter continued or created by
this chapter or any other chapter of the laws of the state of New York],
PURSUANT TO SECTION TWO OF THIS CHAPTER, shall submit to the chief exec-
utive officer, the chief fiscal officer, the chairperson of the legisla-
tive  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 days before the commencement of its fiscal year,
in  the form submitted to its members or trustees, budget information on
operations and capital construction setting forth the estimated receipts
and expenditures for the next fiscal year and the current  fiscal  year,
and  the  actual receipts and expenditures for the last completed fiscal
year.
  S 3. Subdivision 1 of section 2895 of the public authorities  law,  as
added by chapter 766 of the laws of 2005, is amended to read as follows:
  1.  "Contracting  officer"  shall  mean  the  officer or employee of a
public authority OR LOCAL AUTHORITY PURSUANT  TO  SECTION  TWO  OF  THIS
CHAPTER  who shall be appointed by resolution of the board of the public
OR LOCAL authority to be responsible for the disposition of property.
  S 4. Section 2896 of the public authorities law, as added  by  chapter
766  of  the laws of 2005 and subdivision 3 as amended by chapter 506 of
the laws of 2009, is amended to read as follows:
  S 2896. Duties of public AND LOCAL authorities  with  respect  to  the
disposal of property. 1. Every PUBLIC AND LOCAL authority, as defined in
section  two  of  this  chapter, shall adopt by resolution comprehensive
guidelines which shall (a) detail the public OR LOCAL authority's opera-
tive policy and instructions regarding the use, awarding, monitoring and
reporting of contracts for the disposal of property, and (b) designate a
contracting officer who shall be responsible for  the  public  OR  LOCAL
authority's  compliance  with, and enforcement of, such guidelines. Such
guidelines shall be consistent with, and shall  require  the  public  OR
LOCAL  authority's  contracting  activities to comply with this section,
the [authorities] AUTHORITY'S enabling legislation and any other  appli-
cable  law for the disposal of property, except that such guidelines may
be stricter than the provisions of this section, the authorities  enabl-
ing legislation and any other applicable law for the disposal of proper-
ty  if  the  public  OR LOCAL authority determines that additional safe-
guards  are  necessary  to  assure  the  integrity  of  its  disposition
activities.  Guidelines  approved by the public OR LOCAL authority shall
be annually reviewed and approved by the governing body of the public OR
LOCAL authority. On or before the thirty-first  day  of  March  in  each
year,  the  public  OR LOCAL authority shall file with the comptroller a
copy of the guidelines most recently reviewed and approved by the public
OR LOCAL authority, including the name of the public OR  LOCAL  authori-
ty's  designated  contracting officer. At the time of filing such guide-
lines with the comptroller, every public OR LOCAL authority  shall  also
post  such  guidelines  on  the  public  OR  LOCAL  authority's internet
website. IF THE LOCAL AUTHORITY DOES NOT MAINTAIN ITS OWN WEBSITE,  THEN
THE  GUIDELINES  SHALL  BE  POSTED  ON THE WEBSITE OF THE LOCALITY WHICH
CREATED SUCH AUTHORITY. Guidelines posted on the public OR LOCAL author-
ity's internet website shall be maintained  on  such  website  at  least
until  the  procurement  guidelines for the following year are posted on
such website.
  2. Each public OR LOCAL authority shall:

S. 3518                             4

  a. maintain adequate inventory controls and accountability systems for
all property under its control;
  b.  periodically  inventory  such property to determine which property
shall be disposed of;
  c. produce a written report of such property in accordance with subdi-
vision three of this section;
  d. transfer or dispose of such property as  promptly  as  possible  in
accordance with section twenty-eight hundred ninety-seven of this title.
  3. a. Each public OR LOCAL authority shall publish, not less frequent-
ly  than  annually,  a report listing all real property of the public OR
LOCAL authority.  Such report shall 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 OR LOCAL authority
and the name of the purchaser for all such property sold by  [the]  SUCH
public OR LOCAL authority during such period.
  b.  The  public  authority  shall deliver copies of such report to the
comptroller, the director of the budget,  the  commissioner  of  general
services, the legislature and the authorities budget office.
  C.  THE  LOCAL  AUTHORITY  SHALL  DELIVER COPIES OF SUCH REPORT TO THE
COMPTROLLER, THE CHIEF EXECUTIVE OFFICER OF THE LOCALITY, AND THE CHAIR-
PERSON OF THE LEGISLATIVE BODY OF THE LOCAL GOVERNMENT.
  S 5. Section 2897 of the public authorities law, as added  by  chapter
766  of the laws of 2005, subdivision 3 and paragraphs c and d of subdi-
vision 6 as amended and subdivision 7 as added by  chapter  506  of  the
laws of 2009 and paragraph e of subdivision 6 as added by chapter 156 of
the laws of 2012, is amended to read as follows:
  S 2897. Disposal of public OR LOCAL authority property. 1. Supervision
and  direction.  Except  as  otherwise  provided  in  this  section, the
contracting officer designated by each public OR LOCAL  authority  shall
have  supervision and direction over the disposition of property of such
public OR LOCAL authority.
  2. Custody and control. (A) The custody and control of the property of
a public authority, pending its disposition, and the  disposal  of  such
property, shall be performed by the public authority in possession ther-
eof  or by the commissioner of general services when so authorized under
this section.
  (B) THE CUSTODY AND CONTROL OF THE  PROPERTY  OF  A  LOCAL  AUTHORITY,
PENDING  ITS  DISPOSITION,  AND  THE  DISPOSAL OF SUCH PROPERTY SHALL BE
PERFORMED BY THE LOCAL AUTHORITY IN POSSESSION THEREOF.
  3. Method of disposition.  Subject  to  section  twenty-eight  hundred
ninety-six  of  this title, any public OR LOCAL authority may dispose of
property for not less than the fair market value  of  such  property  by
sale,  exchange,  or transfer, for cash, credit, or other property, with
or without warranty, and upon such other terms  and  conditions  as  the
contracting  officer deems proper, and it may execute such documents for
the transfer of title or other interest in property and take such  other
action as it deems necessary or proper to dispose of such property under
the  provisions  of this section. Provided, however, that no disposition
of real property, or any interest in real property, shall be made unless
an appraisal of the value of such property has been made by an independ-
ent appraiser and included  in  the  record  of  the  transaction,  and,
provided  further,  that  no  disposition  of  any other property, which
because of its unique nature or the unique circumstances of the proposed
transaction is not readily valued by reference to an active  market  for
similar property, shall be made without a similar appraisal.

S. 3518                             5

  4.  Sales  by  the  commissioner of general services. When it shall be
deemed advantageous to the state, any public authority may enter into an
agreement with the commissioner of general  services  where  under  such
commissioner  may  dispose  of  property  of such public authority under
terms  and  conditions agreed to by the public authority and the commis-
sioner of general services. In disposing  of  any  such  property  of  a
public authority, the commissioner of general services shall be bound by
the  terms of this title and references to the contracting officer shall
be deemed to refer to such commissioner.
  5. Validity of deed, bill of sale, lease, or other instrument. A deed,
bill of sale, lease, or other instrument executed by or on behalf of any
public OR LOCAL authority, purporting to transfer  title  or  any  other
interest  in  property  of  a public OR LOCAL authority under this title
shall be conclusive evidence of compliance with the provisions  of  this
title insofar as concerns title or other interest of any bona fide gran-
tee or transferee who has given valuable consideration for such title or
other  interest  and  has  not received actual or constructive notice of
lack of such compliance prior to the closing.
  6. Bids for disposal; advertising; procedure; disposal by negotiation;
explanatory statement. a. All disposals or  contracts  for  disposal  of
property  of  a  public  OR  LOCAL  authority  made or authorized by the
contracting officer shall be made after publicly  advertising  for  bids
except as provided in paragraph c of this subdivision.
  b.  Whenever public advertising for bids is required under paragraph a
of this subdivision:
  (i) the advertisement for bids shall be made at such time prior to the
disposal or contract, through such methods, and on such terms and condi-
tions as shall permit full and  free  competition  consistent  with  the
value and nature of the property;
  (ii) all bids shall be publicly disclosed at the time and place stated
in the advertisement; and
  (iii)  the award shall be made with reasonable promptness by notice to
the responsible bidder whose bid, conforming to the invitation for bids,
will be most advantageous to the state OR THE LOCALITY, price and  other
factors  considered;  provided, that all bids may be rejected when it is
in the public interest to do so.
  c. Disposals and contracts for disposal of property may be  negotiated
or  made  by public auction without regard to paragraphs a and b of this
subdivision but subject to obtaining such  competition  as  is  feasible
under the circumstances, if:
  (i)  the  personal  property  involved has qualities separate from the
utilitarian purpose of such property, such as artistic quality, antiqui-
ty, historical significance, rarity, or other quality of similar effect,
that would tend to increase its value, or if the personal property is to
be sold in such quantity that, if it were disposed of under paragraphs a
and b of this subdivision, would adversely affect  the  state  or  local
market  for  such  property, and the estimated fair market value of such
property and other satisfactory terms of disposal  can  be  obtained  by
negotiation;
  (ii)  the  fair  market  value of the property does not exceed fifteen
thousand dollars;
  (iii) bid prices after advertising therefor are not reasonable, either
as to all or some part of the property, or have not  been  independently
arrived at in open competition;

S. 3518                             6

  (iv)  the  disposal will be to the state or any political subdivision,
and the estimated fair market value of the property and other  satisfac-
tory terms of disposal are obtained by negotiation; or
  (v)  under  those circumstances permitted by subdivision seven of this
section; or
  (vi) such action is otherwise authorized by law.
  d. (i) An explanatory statement shall be prepared of the circumstances
of each disposal by negotiation of:
  (A) any personal property which has an estimated fair market value  in
excess of fifteen thousand dollars;
  (B)  any  real  property  that  has  an estimated fair market value in
excess of one hundred thousand dollars, except that  any  real  property
disposed  of  by  lease or exchange shall only be subject to clauses (C)
and (D) of this subparagraph;
  (C) any real property disposed of by lease, if  the  estimated  annual
rent  over  the  term  of  the  lease  is  in excess of fifteen thousand
dollars;
  (D) any real property or real and related personal  property  disposed
of  by  exchange,  regardless  of value, or any property any part of the
consideration for which is real property.
  (ii) Each such statement shall be transmitted to the persons  entitled
to  receive  copies  of  the  report required under section twenty-eight
hundred ninety-six of this title not less than ninety days in advance of
such disposal, and a copy thereof shall be preserved in the files of the
public authority making such disposal.
  e. Disposals and contracts for disposal of real property by the  canal
corporation  may  be  made by negotiated sale rather than public auction
provided that all of the following conditions have been satisfied:
  (i) The canal corporation has determined that: such real  property  is
no  longer necessary or useful to the purposes of the canal corporation;
disposal of such real property complies with all  applicable  provisions
of  the  canal  law;  and  disposal of such real property is in the best
interest of the canal corporation;
  (ii) An appraisal of the fair market value of such property  has  been
made by an independent appraiser and included in the record of the tran-
saction;
  (iii)  The  fair  market  value  of such real property is greater than
fifteen thousand dollars but  not  greater  than  seventy-five  thousand
dollars;
  (iv)  Such  real  property was improved prior to April first, nineteen
hundred ninety-two under a municipal permit or a permit issued  pursuant
to  section  one hundred of the canal law, thereby creating an encroach-
ment on canal corporation real property;
  (v) The purchaser of such real property is, or will be, the  owner  of
the  improvement  that  either  fully  or  partially encroaches on canal
corporation real property; and
  (vi) The consideration paid for such real property will  be  not  less
than  the fair market value of the real property exclusive of the value,
fair market or otherwise, of the encroaching improvements.
  7. Disposal of property for less than fair market value. a.  No  asset
owned, leased or otherwise in the control of a public OR LOCAL authority
may  be  sold,  leased,  or  otherwise  alienated for less than its fair
market value except if:
  (i) the transferee is a government or other  public  entity,  and  the
terms  and conditions of the transfer require that the ownership and use
of the asset will remain with the government or any other public entity;

S. 3518                             7

  (ii) the purpose of the transfer is within  the  purpose,  mission  or
governing statute of the public OR LOCAL authority; or
  (iii)  in  the  event a public OR LOCAL authority seeks to transfer an
asset for less than its fair market value to other than  a  governmental
entity,  which  disposal  would  not  be consistent with the authority's
mission, purpose or governing statutes,  such  authority  shall  provide
written  notification thereof to the governor, the speaker of the assem-
bly, and the temporary president of the senate, and such proposed trans-
fer shall be subject to denial by  the  governor,  the  senate,  or  the
assembly.    Denial  by  the  governor  shall  take the form of a signed
certification by the governor. Denial by either house of the legislature
shall take the form of a resolution by such house. The governor and each
house of the legislature shall take any such action within sixty days of
receiving notification of such proposed transfer during  the  months  of
January  through June, provided that if the legislature receives notifi-
cation of a proposed transfer during the months of July  through  Decem-
ber, the legislature may take any such action within sixty days of Janu-
ary  first of the following year. If no such resolution or certification
is performed within sixty days of  such  notification  of  the  proposed
transfer to the governor, senate, and assembly, the public authority may
effectuate  such  transfer.  Provided,  however,  that with respect to a
below market transfer by a  local  authority  that  is  not  within  the
purpose,  mission  or  governing  statute of the local authority, if the
governing statute provides for the approval  of  such  transfer  by  the
executive and legislative branches of the political subdivision in which
such  local  authority resides, and the transfer is of property obtained
by the authority from that political  subdivision,  then  such  approval
shall be sufficient to permit the transfer.
  b.  In the event a below fair market value asset transfer is proposed,
the following information must be provided to the  authority  board  and
the public:
  (i) a full description of the asset;
  (ii)  an appraisal of the fair market value of the asset and any other
information establishing the fair market value sought by the board;
  (iii) a description of the purpose of the transfer, and  a  reasonable
statement  of the kind and amount of the benefit to the public resulting
from the transfer, including  but  not  limited  to  the  kind,  number,
location,  wages or salaries of jobs created or preserved as required by
the transfer, the benefits, if any, to  the  communities  in  which  the
asset is situated as are required by the transfer;
  (iv)  a  statement  of  the  value to be received compared to the fair
market value;
  (v) the names of any private parties participating  in  the  transfer,
and  if  different  than  the statement required by subparagraph (iv) of
this paragraph, a statement of the value to the private party; and
  (vi) the names of other private parties who have  made  an  offer  for
such  asset,  the value offered, and the purpose for which the asset was
sought to be used.
  c. Before approving the disposal of any property for  less  than  fair
market  value,  the board of an authority shall consider the information
described in paragraph b of this subdivision and make a written determi-
nation that there is no reasonable alternative to  the  proposed  below-
market transfer that would achieve the same purpose of such transfer.
  S  6.  Section 51 of the executive law, as added by chapter 766 of the
laws of 2005, is amended to read as follows:

S. 3518                             8

  S 51. Jurisdiction. This article shall,  subject  to  the  limitations
contained herein, confer upon the office of the state inspector general,
jurisdiction over all covered agencies. For the purposes of this article
"covered  agency"  shall  include all executive branch agencies, depart-
ments,  divisions,  officers,  boards  and commissions, public AND LOCAL
authorities, AS DEFINED IN SECTION TWO OF  THE  PUBLIC  AUTHORITIES  LAW
(other than multi-state or multi-national authorities), and public bene-
fit  corporations,  the heads of which are appointed by the governor and
which do not have their own inspector general by statute.    Wherever  a
covered  agency  is  a  board,  commission, a public authority or public
benefit corporation, the head of the agency is the chairperson thereof.
  S 7. Subdivision 3 of section 86 of the public officers law, as  added
by chapter 933 of the laws of 1977, is amended to read as follows:
  3.  "Agency"  means  any state or municipal department, board, bureau,
division, commission, committee, public OR LOCAL authority  (AS  DEFINED
IN SECTION TWO OF THE PUBLIC AUTHORITIES LAW), public corporation, coun-
cil,  office  or  other governmental entity performing a governmental or
proprietary function for the state or any  one  or  more  municipalities
thereof, except the judiciary or the state legislature.
  S  8.  Subdivision  2  of  section  102 of the public officers law, as
amended by chapter 704 of the laws of 1979 and such  section  as  renum-
bered by chapter 652 of the laws of 1983, is amended to read as follows:
  2.  "Public  body" means any entity, for which a quorum is required in
order to conduct public business and  which  consists  of  two  or  more
members,  performing  a  governmental  function  for the state or for an
agency or department thereof, or for a public corporation as defined  in
section  sixty-six of the general construction law, OR A LOCAL AUTHORITY
AS DEFINED BY SECTION TWO OF THE PUBLIC AUTHORITIES LAW, or committee or
subcommittee or other similar body of such public body.
  S 9. This act shall take effect on the one hundred twentieth day after
it shall have become a law; provided, however, that effective immediate-
ly, the addition, amendment and/or repeal  of  any  rule  or  regulation
necessary  for  the implementation of this act on its effective date are
authorized and directed to be made  and  completed  on  or  before  such
effective date.

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