S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5657--A
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 14, 2017
                                ___________
 
 Introduced by M. of A. OAKS, KOLB, BARCLAY, BLANKENBUSH, BUTLER, CROUCH,
   ERRIGO, GARBARINO, GIGLIO, GOODELL, HAWLEY, LAWRENCE, LUPINACCI, McDO-
   NOUGH,  McKEVITT,  MONTESANO, MURRAY, RA, RAIA, STEC, WALTER -- Multi-
   Sponsored by -- M. of A. FITZPATRICK, McLAUGHLIN,  B. MILLER  --  read
   once  and  referred  to  the  Committee on Ways and Means -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN ACT to amend the state finance law, in relation to  establishing  the
   lump  sum  allocation  advisory committee (Part A); to amend the state
   finance law, in relation to requiring transparency, identification and
   disclosure of certain appropriations (Part B); to amend the  executive
   law,  in  relation to withholding the salaries of the governor, agency
   commissioners and deputy commissioners for  failing  to  meet  certain
   reporting  deadlines  (Part  C);  to amend the tax law, in relation to
   creating a tax rate reduction board to look at personal income tax and
   corporate franchise tax rates (Part D); to amend the economic develop-
   ment law, in relation to conducting an audit  of  all  state  economic
   development  programs  (Part  E); to amend the public officers law and
   the  election  law,  in  relation  to  prohibiting  certain  political
   contributions  by  individuals appointed to entities that oversee lump
   sum appropriations (Part F); and to amend the public authorities  law,
   in relation to prohibiting certain third party contracts (Part G)
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings and intent. It  is  the  duty  of  the
 state  government  to  be responsible, open and transparent about how it
 spends the taxpayer's hard earned money. With  billions  of  dollars  of
 lump  sum  appropriations  included  in the state budget that include no
 details on who receives the money, or even which  elected  official  has
 control  over  the appropriation, and with continued delays in releasing
 reports by state agencies on the effectiveness of related programs,  the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08424-02-7

 A. 5657--A                          2
 
 government  has  failed  to  live up to its responsibility. Often times,
 this  failure  goes  even  deeper,  as  individuals  and  entities  have
 personally  benefited  from the lack of accountability and transparency.
 Therefore, the legislature finds it necessary to create a lump sum allo-
 cation  advisory committee, require greater transparency related to lump
 sum appropriations, implement penalties for certain state  agencies  and
 entities that fail to release timely reports, prohibit certain political
 contributions  by  appointees and conduct studies on how to simplify the
 current tax system and economic development environment  to  ensure  the
 current system that creates winners and losers is changed. By implement-
 ing  these  policies,  the  state  government  can  begin  to repair the
 complete breakdown of trust over how it allocates taxpayer money.
   § 2. This act enacts into law major components of legislation  provid-
 ing  for  the  creation  of  a  lump  sum allocation advisory committee,
 requiring greater  transparency  related  to  lump  sum  appropriations,
 implementing penalties for certain state agencies and entities that fail
 to  release  timely reports, prohibiting certain political contributions
 by appointees and conducting studies on how to simplify the current  tax
 system and economic development environment to ensure the current system
 that  creates  winners  and  losers is changed. Each component is wholly
 contained within a Part identified as Parts A through G.  The  effective
 date  for  each  particular  provision contained within such Part is set
 forth in the last section of such Part. Any  provision  in  any  section
 contained within a Part, including the effective date of the Part, which
 makes reference to a section "of this act", when used in connection with
 that  particular  component,  shall  be  deemed to mean and refer to the
 corresponding section of the Part in which it is found. Section four  of
 this act sets forth the general effective date of this act.
 
                                  PART A
 
   Section  1.  The  state finance law is amended by adding a new section
 49-a to read as follows:
   § 49-A. LUMP SUM ALLOCATION ADVISORY COMMITTEE. 1.    DEFINITIONS.  AS
 USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEAN-
 INGS:
   (A)  "COMMITTEE" SHALL MEAN THE LUMP SUM ALLOCATION ADVISORY COMMITTEE
 AS ESTABLISHED BY SUBDIVISION TWO OF THIS SECTION;
   (B) "LUMP SUM APPROPRIATION" SHALL MEAN AN ITEM OF APPROPRIATION  WITH
 A  SINGLE RELATED OBJECT OR PURPOSE, THE PURPOSE OF WHICH IS TO FUND ONE
 OR MORE GRANTEES BY A MEANS OTHER THAN A STATUTORILY PRESCRIBED  FORMULA
 OR  AN ALLOCATION PURSUANT TO SUBDIVISION FIVE OF SECTION TWENTY-FOUR OF
 THIS CHAPTER; AND
   (C) "GRANTEE" SHALL HAVE THE SAME MEANING AS SUBDIVISION TWENTY-TWO OF
 SECTION TWO OF THIS CHAPTER.
   2. ESTABLISHMENT. THERE IS HEREBY ESTABLISHED THE LUMP SUM  ALLOCATION
 ADVISORY COMMITTEE CONSISTING OF THE DIRECTOR OF THE DIVISION OF BUDGET,
 THE COMPTROLLER AND THE ATTORNEY GENERAL.
   3.  POWERS AND DUTIES. THE COMMITTEE SHALL HAVE THE POWER AND DUTY TO:
 (A) REVIEW ALL REQUESTS FOR ALLOCATIONS FROM A  LUMP  SUM  APPROPRIATION
 WHERE A GRANTEE IS NOT IDENTIFIED;
   (B)  REQUEST  AND RECEIVE, AND SHALL UTILIZE AND BE PROVIDED WITH SUCH
 FACILITIES, RESOURCES AND  DATA  OF  ANY  COURT,  DEPARTMENT,  DIVISION,
 BOARD, BUREAU, COMMISSION, AGENCY SUBSIDIARY OR SUBDIVISION OF THE STATE
 OR  ANY  POLITICAL  SUBDIVISION  THEREOF,  OR OF ANY PUBLIC AUTHORITY OR

 A. 5657--A                          3

 PUBLIC BENEFIT CORPORATION, AS IT MAY REASONABLY REQUEST  TO  CARRY  OUT
 ITS POWERS AND DUTIES PURSUANT TO THIS SUBDIVISION;
   (C)  REVIEW  AND  EXAMINE FINANCIAL AND PERSONAL RELATIONSHIPS BETWEEN
 ANY POTENTIAL GRANTEE AND THE ENTITY REQUESTING THE ALLOCATION TO DETER-
 MINE IF A CONFLICT OF INTEREST EXISTS;
   (D) EXAMINE THE TOP QUALIFIED ENTITIES FOR ALLOCATIONS FROM A LUMP SUM
 APPROPRIATION THAT ARE ALLOCATED THROUGH A COMPETITIVE PROCESS TO DETER-
 MINE IF A CONFLICT OF INTEREST EXISTS;
   (E) DENY ANY ALLOCATION FROM A LUMP SUM APPROPRIATION TO A GRANTEE  IF
 THE COMMITTEE DETERMINES A CONFLICT OF INTEREST EXISTS; AND
   (F)  APPROVE  ANY  ALLOCATION  FROM  A  LUMP  SUM  APPROPRIATION AFTER
 COMPLETING A FULL AND THOROUGH REVIEW OF SUCH ALLOCATION.
   4. ALLOCATION. NO MONIES FROM A LUMP SUM APPROPRIATION SHALL BE  ALLO-
 CATED UNLESS UNANIMOUSLY APPROVED BY THE COMMITTEE.
   § 2. This act shall take effect immediately.
 
                                  PART B
 
   Section  1.  Subdivisions  4  and 5 of section 24 of the state finance
 law, as added by chapter 1 of the laws of 2007, are amended  and  a  new
 subdivision 5-a is added to read as follows:
   4.  Any  appropriation SUBMITTED BY THE GOVERNOR, WHEN PRACTICABLE, OR
 added to such budget bills, pursuant to section four of article seven of
 the constitution, shall only contain itemized appropriations which shall
 not be in the form of lump sum appropriations, and provided further that
 for all non-federal state operations appropriations, such bill or  bills
 shall  only  contain  itemized  appropriations  and shall be made, where
 practicable, by agency, and within each agency  by  program  and  within
 each  program  at  the  following  level  of detail and in the following
 order:
   (a) by fund type, which at  a  minimum  shall  include  general  fund,
 special  revenue-other  funds,  capital  projects funds and debt service
 funds;
   (b) for personal service appropriations, separate appropriations shall
 be made for regular personal service, temporary  personal  service,  and
 holiday and overtime pay;
   (c)  for  nonpersonal  service appropriations, separate appropriations
 shall be made for supplies and materials, travel, contractual  services,
 equipment and fringe benefits, as appropriate; AND
   (D)  AT  THE  REQUEST OR DISCRETION OF THE GOVERNOR OR A MEMBER OF THE
 LEGISLATURE, SUCH APPROPRIATION SHALL INCLUDE THE NAME OF  THE  GOVERNOR
 OR MEMBER OF THE LEGISLATURE THAT REQUESTED SUCH APPROPRIATION.
   5.  Any  appropriation SUBMITTED BY THE GOVERNOR, OR added pursuant to
 section four of article seven of the constitution without designating  a
 grantee  shall  be  allocated  only  pursuant to a plan setting forth an
 itemized list of grantees with the amount to be received by each, or the
 methodology for  allocating  such  appropriation.  Such  plan  shall  be
 subject  to  the  approval of the chair of the senate finance committee,
 the chair of the assembly ways and means committee, and the director  of
 the  budget, and thereafter shall be included in a concurrent resolution
 calling for the expenditure of such monies,  which  resolution  must  be
 approved  by a majority vote of all members elected to each house upon a
 roll call vote.
   5-A. ANY APPROPRIATION SUBMITTED BY THE  GOVERNOR  OR  ADDED  TO  SUCH
 BUDGET BILLS, PURSUANT TO SECTION FOUR OF ARTICLE SEVEN OF THE CONSTITU-

 A. 5657--A                          4
 
 TION,  OR  ALLOCATION  FROM A LUMP SUM APPROPRIATION SHALL BE SUBJECT TO
 THE FOLLOWING:
   (A)  THE  GOVERNOR OR MEMBER OF THE LEGISLATURE REQUESTING SUCH APPRO-
 PRIATION OR ALLOCATION FROM A LUMP SUM APPROPRIATION SHALL  BE  REQUIRED
 TO SUBMIT A SIGNED CONFLICT OF INTEREST FORM AND SUBMIT SUCH FORM TO THE
 LUMP  SUM  ALLOCATION  ADVISORY  COMMITTEE  AS  ESTABLISHED  PURSUANT TO
 SECTION FORTY-NINE-A OF THIS CHAPTER  TO  ENSURE  THAT  NO  CONFLICT  OF
 INTEREST EXISTS; THE LUMP SUM ALLOCATION ADVISORY COMMITTEE SHALL DESIG-
 NATE THE FORM AND CONTENT OF THE CONFLICT OF INTEREST FORM. THE GOVERNOR
 OR  MEMBER OF THE LEGISLATURE SHALL DISCLOSE ON THE CONFLICT OF INTEREST
 FORM ALL POLITICAL DONATIONS HE OR SHE IS RECEIVING OR HAS  RECEIVED  IN
 THE  PAST  FROM  THE  INTENDED RECIPIENT OF THE APPROPRIATION FUNDING OR
 ALLOCATION FROM A LUMP SUM APPROPRIATION. SUCH A  CONFLICT  OF  INTEREST
 FORM  SHALL BE SIGNED BY THE GOVERNOR OR MEMBER OF THE LEGISLATURE UNDER
 PENALTY OF PERJURY;
   (B) AN APPROPRIATION PROVIDED AT THE DISCRETION  OF  THE  GOVERNOR  OR
 MEMBER OF THE LEGISLATURE OR AN ALLOCATION FROM A LUMP SUM APPROPRIATION
 SHALL  NOT  BE  PROVIDED  IF  THE LUMP SUM ALLOCATION ADVISORY COMMITTEE
 DECLARES A CONFLICT OF INTEREST EXISTS BETWEEN THE GOVERNOR OR A  MEMBER
 OF  THE  LEGISLATURE  DESIGNATING THE APPROPRIATION OR ALLOCATION FROM A
 LUMP SUM APPROPRIATION AND THE POTENTIAL  RECIPIENT.    THESE  APPROPRI-
 ATIONS AND ALLOCATIONS FROM LUMP SUM APPROPRIATIONS CANNOT FUND AN INDI-
 VIDUAL  OR  ENTITY THAT EMPLOYS OR OTHERWISE COMPENSATES THE GOVERNOR OR
 MEMBER OF THE LEGISLATURE, GOVERNOR'S FAMILY OR MEMBER OF  THE  LEGISLA-
 TOR'S  FAMILY,  ANY PERSON SHARING THE HOME OF THE GOVERNOR OR MEMBER OF
 THE LEGISLATURE OR THE GOVERNOR'S OR A MEMBER OF THE LEGISLATOR'S  STAFF
 FOR SERVICES OR LABOR RENDERED.  FURTHERMORE, THE GOVERNOR OR MEMBERS OF
 THE  LEGISLATURE  SHALL  NOT  DESIGNATE  APPROPRIATIONS OR REQUEST ALLO-
 CATIONS FROM A LUMP SUM APPROPRIATION IF THE GOVERNOR OR MEMBER  OF  THE
 LEGISLATURE,  A  MEMBER  OF THE GOVERNOR'S OR MEMBER OF THE LEGISLATOR'S
 FAMILY, ANY PERSON SHARING THE HOME OF THE GOVERNOR  OR  MEMBER  OF  THE
 LEGISLATURE  OR A MEMBER OF THE GOVERNOR'S OR MEMBER OF THE LEGISLATOR'S
 STAFF IS INVOLVED WITH THE OPERATIONS OF THE  ORGANIZATION  IN  A  DECI-
 SION-MAKING  CAPACITY INCLUDING BUT NOT LIMITED TO WORKING ON AN UNPAID,
 VOLUNTEER BASIS OR AS A MEMBER OF THE DIRECTING BOARD  OF  AN  ORGANIZA-
 TION; AND
   (C)  AN  APPROPRIATION  PROVIDED  AT THE DISCRETION OF THE GOVERNOR OR
 MEMBER OF THE LEGISLATURE OR AN ALLOCATION FROM A LUMP SUM APPROPRIATION
 SHALL NOT BE PROVIDED TO ANY INDIVIDUAL OR ENTITY WHO MADE  A  POLITICAL
 DONATION  WITHIN THE PAST YEAR TO THE GOVERNOR OR MEMBER OF THE LEGISLA-
 TURE REQUESTING THE APPROPRIATION OR ALLOCATION FROM A LUMP  SUM  APPRO-
 PRIATION  UNTIL  THE POLITICAL DONATION IS REFUNDED TO THE INDIVIDUAL OR
 ENTITY.
   § 2. This act shall take effect immediately.
 
                                  PART C
 
   Section 1. The executive law is amended by adding a new section 33  to
 read as follows:
   § 33. LUMP SUM APPROPRIATION REPORTING; ENFORCEMENT. 1.  NOTWITHSTAND-
 ING ANY LAW TO THE CONTRARY, THE COMPTROLLER IS DIRECTED TO WITHHOLD THE
 SALARIES  OF THE GOVERNOR, AGENCY COMMISSIONERS AND DEPUTY COMMISSIONERS
 WHEN ECONOMIC DEVELOPMENT STATE AGENCIES, SUBSIDIARIES AND  AUTHORITIES,
 AND/OR ANY STATE ENTITY REQUIRED TO ISSUE A REPORT RELATED TO A LUMP SUM
 APPROPRIATION FAILS TO MEET STATUTORILY REQUIRED REPORTING DEADLINES.

 A. 5657--A                          5
 
   2.  FOR PURPOSES OF THIS SECTION "ECONOMIC DEVELOPMENT STATE AGENCIES,
 SUBSIDIARIES AND AUTHORITIES" SHALL INCLUDE, BUT ARE NOT LIMITED TO  THE
 DEPARTMENT OF ECONOMIC DEVELOPMENT, EMPIRE STATE DEVELOPMENT CORPORATION
 AND ALL OF ITS SUBSIDIARIES, THE DEPARTMENT OF TAXATION AND FINANCE, AND
 THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK AND ITS SUBSIDIARIES.
   3.  THE  COMPTROLLER  SHALL  WITHHOLD THE SALARIES OF THE GOVERNOR AND
 OFFENDING AGENCY  COMMISSIONERS  AND  DEPUTY  COMMISSIONERS  UNTIL  SUCH
 REQUIRED  REPORTS,  AS DESCRIBED IN SUBDIVISION ONE OF THIS SECTION, ARE
 ISSUED.
   4. AGENCIES MAY RECEIVE AN EXTENSION TO SUBMIT A REQUIRED  REPORT,  AS
 DESCRIBED  IN SUBDIVISION ONE OF THIS SECTION, IF REQUESTED AND APPROVED
 BY ALL LEGISLATIVE CONFERENCE LEADERS.
   § 2. This act shall take effect immediately.
 
                                  PART D
 
   Section 1. The tax law is amended by adding a  new  section  171-q  to
 read as follows:
   §  171-Q.  TAX RATE REDUCTION BOARD; PERSONAL AND CORPORATE TAX STUDY.
 (1) (A) THE COMMISSIONER SHALL CONTRACT  WITH  A  NATIONALLY  RECOGNIZED
 ENTITY  TO  CONDUCT A STUDY TO EXAMINE THE CORRESPONDING PERSONAL INCOME
 TAX BRACKETS AND DOLLAR AMOUNTS THAT COULD BE ENACTED IF A PROPORTIONATE
 REDUCTION IN THE PERSONAL INCOME  TAX  BRACKET  AND  DOLLAR  AMOUNTS  AS
 PROVIDED  IN  SECTION  SIX HUNDRED ONE OF THIS CHAPTER FOR TAXABLE YEARS
 BEGINNING AFTER TWO THOUSAND ELEVEN AND BEFORE TWO THOUSAND NINETEEN AND
 FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND EIGHTEEN, IF ALL  OF  THE
 PERSONAL  INCOME TAX CREDITS PROVIDED IN SECTION SIX HUNDRED SIX OF THIS
 CHAPTER WERE ELIMINATED AND PERSONAL INCOME TAX RECEIPTS WERE FORECASTED
 TO BE REVENUE NEUTRAL BASED ON CURRENT LAW.
   (B) THE COMMISSIONER SHALL CONTRACT WITH A NATIONALLY RECOGNIZED ENTI-
 TY TO CONDUCT A STUDY TO EXAMINE  THE  CORRESPONDING  REDUCTION  IN  THE
 IMPOSITION  OF  THE  CORPORATE  FRANCHISE TAX THAT COULD BE ENACTED IF A
 PROPORTIONATE REDUCTION IN THE IMPOSITION OF THE CORPORATE FRANCHISE TAX
 AS PROVIDED BY SECTIONS TWO HUNDRED NINE AND TWO  HUNDRED  TEN  OF  THIS
 CHAPTER,  IF  ALL  THE  CREDITS PROVIDED IN SECTION TWO HUNDRED TEN-B OF
 THIS CHAPTER WERE ELIMINATED AND THE CORPORATE  FRANCHISE  TAX  RECEIPTS
 WERE FORECASTED TO BE REVENUE NEUTRAL BASED ON CURRENT LAW.
   (2)  THERE IS HEREBY ESTABLISHED A TAX RATE REDUCTION BOARD CONSISTING
 OF FOUR MEMBERS. ONE REPRESENTATIVE SHALL BE APPOINTED FROM EACH OF  THE
 FOLLOWING:
   (A) THE SPEAKER OF THE ASSEMBLY;
   (B) THE MINORITY LEADER OF THE ASSEMBLY;
   (C) THE TEMPORARY PRESIDENT OF THE SENATE; AND
   (D) THE MINORITY LEADER OF THE SENATE.
   (3) THE TAX RATE REDUCTION BOARD SHALL:
   (A)   APPROVE  THE  SELECTION  OF  THE  NATIONALLY  RECOGNIZED  ENTITY
 DESCRIBED IN SUBDIVISION ONE OF THIS SECTION, PRIORITY FOR  SUCH  ENTITY
 SHALL BE GIVEN TO FIRMS THAT ARE NOT CURRENT VENDORS DOING BUSINESS WITH
 THE STATE;
   (B)  OVERSEE  THE REQUIRED REPORTS DESCRIBED IN PARAGRAPHS (A) AND (B)
 OF SUBDIVISION ONE OF THIS SECTION; AND
   (C) ASSIST IN THE DETERMINATION OF AREAS OF INQUIRY  FOR,  REVIEW  THE
 PROGRESS OF, AND EVALUATE THE RESULTS OF SUCH REQUIRED REPORTS.
   (4)  SUCH  BOARD,  IN CONSULTATION WITH THE COMMISSIONER SHALL OVERSEE
 THE ANALYSIS OF THE CONTRACTING ENTITY AND ISSUE A REPORT TO THE  GOVER-
 NOR,  THE  SPEAKER OF THE ASSEMBLY, THE MINORITY LEADER OF THE ASSEMBLY,

 A. 5657--A                          6
 
 THE TEMPORARY PRESIDENT OF THE SENATE AND THE  MINORITY  LEADER  OF  THE
 SENATE DETAILING THE RESULTS OF SUCH STUDIES DESCRIBED IN PARAGRAPHS (A)
 AND  (B)  OF  SUBDIVISION  ONE OF THIS SECTION WITHIN ONE YEAR AFTER THE
 CHAPTER  OF  THE  LAWS OF TWO THOUSAND SEVENTEEN THAT ADDED THIS SECTION
 TAKES EFFECT.
   § 2. This act shall take effect immediately.
 
                                  PART E
 
   Section 1. The economic development law is amended  by  adding  a  new
 section 107 to read as follows:
   § 107. ECONOMIC DEVELOPMENT AUDIT BOARD. 1. THE COMPTROLLER IN COORDI-
 NATION  WITH  THE  COMMISSIONER  AND  THE  COMMISSIONER  OF TAXATION AND
 FINANCE SHALL CONTRACT WITH A NATIONALLY RECOGNIZED ENTITY TO CONDUCT AN
 AUDIT OF ALL STATE ECONOMIC DEVELOPMENT  PROGRAMS.    SUCH  AUDIT  SHALL
 INCLUDE, BUT NOT BE LIMITED TO:
   (A) IDENTIFYING ALL PROGRAMS BY TYPE AND FUNDING SOURCE;
   (B)  IDENTIFYING  THE TYPES OF BUSINESSES THAT HAVE RECEIVED FINANCIAL
 ASSISTANCE;
   (C) REVIEWING INFORMATION AVAILABLE ON JOB CREATION OR OTHER  DATA  ON
 ECONOMIC EXPANSION;
   (D)  ANALYZING  THE  GEOGRAPHIC  DISTRIBUTION  OF FINANCIAL ASSISTANCE
 THROUGHOUT THE STATE;
   (E) REVIEWING A SAMPLE OF LOANS AND GRANTS TO DETERMINE  IF  STATUTORY
 REQUIREMENTS FOR THE PROGRAMS WERE FOLLOWED;
   (F)  REVIEWING  INFORMATION AVAILABLE ON ECONOMIC DEVELOPMENT PROGRAMS
 IN OTHER STATES; AND
   (G) ANY OTHER INFORMATION DEEMED NECESSARY BY THE COMPTROLLER IN COOR-
 DINATION WITH THE COMMISSIONER AND  THE  COMMISSIONER  OF  TAXATION  AND
 FINANCE.
   2.  THERE  IS  HEREBY  ESTABLISHED AN ECONOMIC DEVELOPMENT AUDIT BOARD
 CONSISTING OF FOUR MEMBERS. ONE REPRESENTATIVE SHALL BE  APPOINTED  FROM
 EACH OF THE FOLLOWING:
   (A) THE SPEAKER OF THE ASSEMBLY;
   (B) THE MINORITY LEADER OF THE ASSEMBLY;
   (C) THE TEMPORARY PRESIDENT OF THE SENATE; AND
   (D) THE MINORITY LEADER OF THE SENATE.
   3. THE ECONOMIC DEVELOPMENT BOARD SHALL:
   (A)   APPROVE  THE  SELECTION  OF  THE  NATIONALLY  RECOGNIZED  ENTITY
 DESCRIBED IN SUBDIVISION ONE OF THIS SECTION, PRIORITY FOR  SUCH  ENTITY
 SHALL BE GIVEN TO FIRMS THAT ARE NOT CURRENT VENDORS DOING BUSINESS WITH
 THE STATE;
   (B) OVERSEE THE REQUIRED REPORTS DESCRIBED IN SUBDIVISION FIVE OF THIS
 SECTION; AND
   (C)  ASSIST  IN  THE DETERMINATION OF AREAS OF INQUIRY FOR, REVIEW THE
 PROGRESS OF, AND EVALUATE THE RESULTS OF SUCH REQUIRED REPORTS.
   4. THE ECONOMIC DEVELOPMENT AUDIT BOARD IN CONSULTATION WITH THE COMP-
 TROLLER, THE COMMISSIONER, AND THE COMMISSIONER OF TAXATION AND  FINANCE
 SHALL DEVELOP ALL NECESSARY RULES AND REGULATIONS TO CONDUCT AN AUDIT OF
 ECONOMIC  DEVELOPMENT  PROGRAMS  PURSUANT TO THIS SECTION. FOLLOWING THE
 REVIEW AND AUDIT OF SUCH ECONOMIC DEVELOPMENT PROGRAMS, THE BOARD  SHALL
 RECOMMEND  ALL  NECESSARY  CHANGES  TO  MAKE  SUCH  ECONOMIC DEVELOPMENT
 PROGRAMS MORE TRANSPARENT, STREAMLINED, AND TO ENSURE THAT SUCH PROGRAMS
 ARE MEETING THE GOALS OF THE LAWS THAT ESTABLISHED  THEM  AND  PROVIDING
 FOR A RETURN ON INVESTMENT TO THE STATE. THE RESULTS OF THIS AUDIT SHALL
 BE  FILED  WITH THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE

 A. 5657--A                          7
 
 MINORITY LEADER OF THE SENATE, THE  SPEAKER  OF  THE  ASSEMBLY  AND  THE
 MINORITY  LEADER  OF  THE  ASSEMBLY AND MADE AVAILABLE FOR PUBLIC REVIEW
 ONLINE.
   5.  AFTER  THE CONCLUSION OF THE AUDIT, THE BOARD IN CONSULTATION WITH
 THE COMPTROLLER, THE COMMISSIONER AND THE COMMISSIONER OF  TAXATION  AND
 FINANCE  SHALL  STUDY THE FEASIBILITY OF REDUCING THE NUMBER OF ECONOMIC
 DEVELOPMENT PROGRAMS CURRENTLY OFFERED BY THE STATE AND ITS SUBSIDIARIES
 AND REPLACING THESE PROGRAMS WITH ONE CENTRALIZED COMPETITIVE PROGRAM. A
 REPORT OF THE STUDY, OUTLINING  THE  IMPACT  OF  SUCH  CONSOLIDATION  OF
 PROGRAMS  SHALL  BE  POSTED  ONLINE FOR PUBLIC REVIEW AND FILED WITH THE
 GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE MINORITY LEADER  OF
 THE  SENATE,  THE SPEAKER OF THE ASSEMBLY AND THE MINORITY LEADER OF THE
 ASSEMBLY WITHIN ONE YEAR AFTER THE CHAPTER OF THE LAWS OF  TWO  THOUSAND
 SEVENTEEN THAT ADDED THIS SECTION TAKES EFFECT.
   § 2. This act shall take effect immediately.
 
                                  PART F
 
   Section 1. Paragraph (c) of subdivision 17 of section 73 of the public
 officers  law, as added by chapter 14 of the laws of 2007, is amended to
 read as follows:
   (c) (I) No state officer or employee shall,  directly  or  indirectly,
 use  his  or  her official authority to compel or induce any other state
 officer or employee to make or promise to make  any  political  contrib-
 ution, whether by gift of money, service or other thing of value.
   (II)  NO  OFFICER,  APPOINTED BY ONE OR MORE STATE OFFICERS, OR BY THE
 LEGISLATURE, INCLUDING BUT NOT LIMITED TO APPOINTEES  TO  A  COMMISSION,
 BOARD, COUNCIL OR PANEL, CHARGED WITH THE DISTRIBUTION OF STATE LUMP SUM
 APPROPRIATIONS,  AS  DEFINED BY SUBDIVISION TWENTY-ONE OF SECTION TWO OF
 THE STATE FINANCE LAW, SHALL NOT MAKE  ANY  POLITICAL  CONTRIBUTIONS  TO
 SUCH  APPOINTING  AUTHORITY.  THIS  CONTRIBUTION  PROHIBITION SHALL ALSO
 APPLY TO ANYONE RESIDING IN THE APPOINTEE'S HOUSEHOLD INCLUDING, BUT NOT
 LIMITED TO, A SPOUSE, DOMESTIC PARTNER AND/OR CHILD.  SUCH  CONTRIBUTION
 PROHIBITION SHALL BE FOR THE TERM OF ONE YEAR PRIOR TO, ONE YEAR FOLLOW-
 ING,  AND  DURING THE TERM OF HIS OR HER APPOINTMENT. WHEN AN INDIVIDUAL
 IS APPOINTED TO  SUCH  A  POSITION,  THE  APPOINTEE  MUST  IDENTIFY  ANY
 CONTRIBUTIONS  MADE  TO  THE  APPOINTING  AUTHORITY,  AND THE APPOINTING
 AUTHORITY MUST REFUND THE ENTIRE CONTRIBUTION MADE WITHIN  THE  PREVIOUS
 TWELVE MONTH PERIOD.
   §  2.  The  election  law is amended by adding a new section 14-133 to
 read as follows:
   § 14-133. CONTRIBUTIONS BY APPOINTED  PARTY  OFFICERS.  ANY  APPOINTED
 PARTY  OFFICER, INCLUDING BUT NOT LIMITED TO APPOINTEES TO A COMMISSION,
 BOARD, COUNCIL OR PANEL CHARGED WITH THE DISTRIBUTION OF STATE LUMP  SUM
 APPROPRIATIONS,  AS  DEFINED BY SUBDIVISION TWENTY-ONE OF SECTION TWO OF
 THE STATE FINANCE LAW, SHALL NOT MAKE  ANY  POLITICAL  CONTRIBUTIONS  TO
 SUCH  APPOINTING  AUTHORITY.  THIS  CONTRIBUTION  PROHIBITION SHALL ALSO
 APPLY TO ANYONE RESIDING IN THE APPOINTEE'S HOUSEHOLD INCLUDING, BUT NOT
 LIMITED TO, A SPOUSE, DOMESTIC PARTNER AND/OR CHILD.  SUCH  CONTRIBUTION
 PROHIBITION SHALL BE FOR THE TERM OF ONE YEAR PRIOR TO, ONE YEAR FOLLOW-
 ING,  AND  DURING THE TERM OF HIS OR HER APPOINTMENT. WHEN AN INDIVIDUAL
 IS APPOINTED TO  SUCH  A  POSITION,  THE  APPOINTEE  MUST  IDENTIFY  ANY
 CONTRIBUTIONS  MADE  TO  THE  APPOINTING  AUTHORITY,  AND THE APPOINTING
 AUTHORITY MUST REFUND THE ENTIRE CONTRIBUTION MADE WITHIN  THE  PREVIOUS
 TWELVE MONTH PERIOD.
   § 3. This act shall take effect immediately.

 A. 5657--A                          8
 
                                  PART G
 
   Section  1.  The  public  authorities  law  is amended by adding a new
 section 2882 to read as follows:
   § 2882. THIRD PARTY CONTRACTING  PROHIBITED.  1.  NO  STATE  AUTHORITY
 SHALL  ENTER INTO A CONTRACT OR AGREEMENT OR EXTEND AN EXISTING CONTRACT
 OR AGREEMENT WITH ANOTHER ENTITY, UNLESS AUTHORIZED BY  SPECIAL  ACT  OF
 THE  LEGISLATURE, (I) WHERE THE EXCLUSIVE OR PRIMARY ROLE OF SUCH ENTITY
 UNDER THE CONTRACT OR AGREEMENT IS TO PROCURE GOODS OR SERVICES  OF  ANY
 KIND,  INCLUDING,  BUT NOT LIMITED TO, PUBLIC WORK, CONSTRUCTION, ALTER-
 ATIONS, OR IMPROVEMENTS TO PUBLIC FACILITIES, GRANT  CONTRACTS,  EMPLOY-
 MENT  CONTRACTS,  REVENUE  OR  CONCESSION  CONTRACTS,  THE  EXCHANGE  OF
 PERSONAL OR REAL PROPERTY, THE EXCHANGE OF SERVICES, OR ANY  COMBINATION
 THEREOF  THROUGH  A  CONTRACT  OR  AGREEMENT WITH A THIRD PARTY AND (II)
 WHERE SUCH ENTITY IS ACTING AS A PROCUREMENT CONDUIT, RATHER THAN  BEING
 DIRECTLY RESPONSIBLE FOR THE GOODS OR SERVICES.
   2. THE COMPTROLLER MAY PROMULGATE SUCH RULES AND REGULATIONS AS MAY BE
 NECESSARY TO ENFORCE THIS SECTION, INCLUDING THE STANDARDS FOR DETERMIN-
 ING WHETHER A CONTRACT IS PROHIBITED BY THIS SECTION.
   §  2.  This  act  shall  take  effect  immediately  and shall apply to
 contracts entered into on and after such date.
   § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be  adjudged  by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its  operation  to the clause, sentence, paragraph, subdivision, section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the legislature that this act would  have  been  enacted  even  if  such
 invalid provisions had not been included herein.
   §  4.  This  act shall take effect immediately provided, however, that
 the applicable effective date of Parts A through G of this act shall  be
 as specifically set forth in the last section of such Parts.