NY State Senate Bill 2017-S7749

Senate Bill S7749

2017-2018 Legislative Session

Authorizes the authorities budget office to suspend local authority board members and executive staff

download bill text pdf

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 16, 2018	referred to corporations, authorities and commissions

2017-S7749 (ACTIVE) - Details

See Assembly Version of this Bill:: A9999
Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Public Authorities Law
Laws Affected:: Add §6-a, Pub Auth L
Versions Introduced in Other Legislative Sessions:: 2015-2016: A7744
2019-2020: S1872, A220

2017-S7749 (ACTIVE) - Summary

Authorizes the authorities budget office to suspend local authority board members and executive staff for failure to submit any report required by public authorities law section 2800.

2017-S7749 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7749

SPONSOR: RANZENHOFER
 
TITLE OF BILL:  An act to amend the public authorities law, in
relation to authorizing the authorities budget office to suspend local
authority board members and executive staff

 
PURPOSE OR GENERAL IDEA OF BILL:

To authorize the Authorities Budget Office to suspend local authority
board members and chief executive officers that are substantially delin-
quent in filing required reports.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1- authorizes the Authorities Budget Office (ABO) to suspend
local authority board members or chief executive officers that have
failed to file the reports required by section 2800 for more than three
years after its due date.

Section 2 - establishes the procedures the ABO must follow in order to

issue a suspension which include notification and an explanation of the
failure to file a required report. The notification procedures would
include:

*the issuance of a notice of intent to suspend, informing the board
member(s) or CEO that the local authority has 30 days to remedy the
non-compliance; and

*in the event the board member(s) or CEO fails to respond to the notice,
the issuance of a notice of suspension, which shall give the local
authority 180 days to comply prior to suspension.

Section 3 - authorizes the appointing authority, typically a local
municipal official or legislative body, to reinstate a suspended board
member. This section also authorizes the chairperson of a local authori-
ty to reinstate a suspended chief executive officer. In both instances,
the facts and circumstances by how this decision was reached would be
available to the public.

 
JUSTIFICATION:

This bill would authorize the ABO to suspend local authority board
members and chief executive officers (CEOs) that have failed to file the
reports that are annually required under section 2800 of the Public
Authorities Law. Reports are due 90 days after the end of the authori-
ty's fiscal year. Currently, the ABO is only authorized to make recom-
mendations and issue a public censure letter.  Each year the ABO
publishes a report listing authorities that are delinquent in these
filings. Many of these authorities are only a few months overdue and the
filings are made, if not on time at least soon after they are due.
However, there are some authorities that have not filed for years, and
these are the authorities that this bill addresses. The current lack of
strong enforcement measures has led some authorities to ignore this
filing requirement knowing that they can do so with impunity. By closing
this gap in the ABO's enforcement powers, authority board members and
CEOs can be held directly accountable for long term violations of filing
requirements they are obligated to follow. This bill calls for a public

suspension process to shine a light on authorities that are not other-
wise providing information to which the public is entitled.

As of February 5, 2018, 129 local authorities failed to file reports
with the ABO required by the Public Authorities Law. This includes annu-
al reports and audit reports which are important public documents to
assure the public that a local authority is fulfilling its mission and
remains accountable to the public they serve.

 
PRIOR LEGISLATIVE HISTORY:

2015-16 - S.7878/A.7744-A - RULES/Codes

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
Effective on the ninetieth day after it shall have become law.

2017-S7749 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7749
 
                             I N  S E N A T E
 
                             February 16, 2018
                                ___________
 
 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, in relation  to  authorizing
   the authorities budget office to suspend local authority board members
   and executive staff

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The public authorities law  is  amended  by  adding  a  new
 section 6-a to read as follows:
   §  6-A.  POWER  TO SUSPEND LOCAL AUTHORITY BOARD MEMBERS AND EXECUTIVE
 STAFF. 1. THE  AUTHORITIES  BUDGET  OFFICE  SHALL  HAVE  THE  AUTHORITY,
 SUBJECT  TO  SUBDIVISION  TWO  OF  THIS  SECTION, TO SUSPEND ONE OR MORE
 MEMBERS OF A LOCAL AUTHORITY BOARD OF DIRECTORS, OR THE CHIEF  EXECUTIVE
 OFFICER  OR EQUIVALENT POSITION OF A LOCAL AUTHORITY FOR A PERIOD NOT TO
 EXCEED NINETY DAYS WHEN SUCH INDIVIDUAL OR INDIVIDUALS  KNOWINGLY  FAILS
 OR  NEGLECTS  TO  SUBMIT  ANY  REPORT  REQUIRED  BY SECTION TWENTY-EIGHT
 HUNDRED OF THIS CHAPTER WITHIN THIRTY-SIX MONTHS OF ITS  DUE  DATE.  THE
 AUTHORITIES  BUDGET  OFFICE IS AUTHORIZED TO TERMINATE SUCH A SUSPENSION
 IF THE BOARD MEMBER OR CHIEF EXECUTIVE OFFICER DEMONSTRATES THAT  HE  OR
 SHE HAS REMEDIED THEIR NON-COMPLIANCE. FOR THE PURPOSES OF THIS SECTION,
 THE  "SUSPENSION"  OF  AN INDIVIDUAL SHALL MEAN THE TEMPORARY REMOVAL OF
 THE RIGHTS, RESPONSIBILITIES, POWERS AND DUTIES OF A PERSON  WHO  IS  AN
 APPOINTED BOARD MEMBER OF A LOCAL AUTHORITY OR THE INDIVIDUAL WHO SERVES
 AS  CHIEF  EXECUTIVE OFFICER THROUGH APPOINTMENT OR CONTRACT. SHOULD THE
 AUTHORITIES BUDGET OFFICE SUSPEND THE  FULL  BOARD  OF  DIRECTORS  OR  A
 MAJORITY  OF  CURRENT BOARD MEMBERS THE TERM "SUSPENSION" SHALL MEAN THE
 BOARD OF DIRECTORS IS PROHIBITED FROM TAKING ACTIONS, VOTES, OR ADOPTING
 RESOLUTIONS, THAT BIND THE BOARD TO FUTURE AGREEMENTS, CONTRACTS, FINAN-
 CIAL COMMITMENTS, INDEBTEDNESS, OR OTHER  ACTIONS,  OTHER  THAN  ACTIONS
 NECESSARY  TO  RESOLVE  THE  NONCOMPLIANCE  OR SATISFY EXISTING LEGAL OR
 ADMINISTRATIVE OBLIGATIONS.
   2. (A) PURSUANT TO POLICIES AND PROCEDURES DEVELOPED BY  THE  AUTHORI-
 TIES  BUDGET OFFICE AND MADE AVAILABLE ON ITS WEBSITE, WHEN THE AUTHORI-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD14692-01-8

 S. 7749                             2

 TIES BUDGET OFFICE HAS REASON TO BELIEVE THAT ONE OR MORE BOARD  MEMBERS
 OF  A  LOCAL  AUTHORITY  HAS KNOWINGLY FAILED OR NEGLECTED TO SUBMIT ANY
 REPORT REQUIRED BY SECTION TWENTY-EIGHT HUNDRED OF THIS  CHAPTER  WITHIN
 THIRTY-SIX  MONTHS  OF ITS DUE DATE, THE AUTHORITIES BUDGET OFFICE SHALL
 PROVIDE AT LEAST THIRTY DAYS' NOTICE OF ITS INTENT TO  INITIATE  SUSPEN-
 SION PROCEEDINGS TO THE CHAIRPERSON OF THE LOCAL AUTHORITY, TO THE INDI-
 VIDUAL OR INDIVIDUALS RESPONSIBLE FOR APPOINTING SUCH BOARD MEMBERS, AND
 TO  EACH  SUCH BOARD MEMBER. IF THE AUTHORITIES BUDGET OFFICE HAS REASON
 TO BELIEVE THAT THE CHIEF EXECUTIVE OFFICER OF  A  LOCAL  AUTHORITY  HAS
 KNOWINGLY  FAILED  OR NEGLECTED TO SUBMIT ANY REPORT REQUIRED BY SECTION
 TWENTY-EIGHT HUNDRED OF THIS CHAPTER WITHIN THIRTY-SIX MONTHS OF ITS DUE
 DATE, THE AUTHORITIES BUDGET OFFICE SHALL PROVIDE AT LEAST THIRTY  DAYS'
 NOTICE  OF  ITS  INTENT TO INITIATE SUSPENSION PROCEEDINGS TO THE CHAIR-
 PERSON OF THE LOCAL AUTHORITY AND TO THE CHIEF EXECUTIVE  OFFICER.  SUCH
 NOTICE  SHALL  INCLUDE,  BUT  SHALL NOT BE LIMITED TO (I) THE DATE AND A
 BRIEF DESCRIPTION OF THE FACTS AND NATURE  OF  EACH  NON-COMPLIANCE  FOR
 WHICH  SUCH  SUSPENSION  IS  PROPOSED;  (II) THE NUMBER OF DAYS THAT THE
 AUTHORITIES BUDGET OFFICE PROPOSES TO SUSPEND SUCH BOARD MEMBER OR CHIEF
 EXECUTIVE OFFICER; (III) THE OPTION TO SUBMIT A FORMAL RESPONSE  TO  THE
 AUTHORITIES  BUDGET  OFFICE  WHICH DEMONSTRATES WHY SUCH BOARD MEMBER OR
 CHIEF EXECUTIVE OFFICER SHOULD NOT BE SUSPENDED; AND (IV) IF APPLICABLE,
 A PERIOD OF TIME IN WHICH SUCH LOCAL AUTHORITY OR BOARD MEMBER OR  CHIEF
 EXECUTIVE OFFICER MAY REMEDY THE NON-COMPLIANCE.
   (B)  IF,  AFTER THE EXPIRATION OF THE DEADLINE SET FORTH IN THE NOTICE
 OF INTENT PURSUANT TO SUBPARAGRAPH (IV) OF PARAGRAPH (A) OF THIS  SUBDI-
 VISION, THE BOARD MEMBER OR MEMBERS OR CHIEF EXECUTIVE OFFICER, WHICHEV-
 ER  IS  APPLICABLE,  HAS NOT RESPONDED TO THE NOTICE OR HAS NOT REMEDIED
 THE NON-COMPLIANCE TO THE SATISFACTION OF THE AUTHORITIES BUDGET OFFICE,
 THE AUTHORITIES BUDGET OFFICE SHALL ISSUE  TO  THE  NON-COMPLIANT  BOARD
 MEMBER  OR  MEMBERS  OR  CHIEF  EXECUTIVE OFFICER A NOTICE OF SUSPENSION
 WHICH SHALL INCLUDE: (I) THE NUMBER OF DAYS OF SUSPENSION; AND (II)  THE
 DATE  THAT  SUCH SUSPENSION SHALL COMMENCE, WHICH DATE SHALL BE AT LEAST
 ONE HUNDRED EIGHTY DAYS FROM THE DATE OF THE ISSUANCE OF THE  NOTICE  OF
 SUSPENSION.
   3.  (A)  WHENEVER  THE  AUTHORITIES BUDGET OFFICE HAS SUSPENDED ONE OR
 MORE BOARD MEMBERS OF A LOCAL AUTHORITY, THE INDIVIDUAL  OR  INDIVIDUALS
 WHO APPOINTED THOSE BOARD MEMBERS MAY ACT TO REINSTATE A SUSPENDED BOARD
 MEMBER. IF THE APPOINTING AUTHORITY IS A LEGISLATIVE BODY OR A MEMBER OF
 THE  LEGISLATIVE  BODY, ANY ACTION TO REINSTATE A SUSPENDED BOARD MEMBER
 SHALL OCCUR IN A PUBLIC MEETING OF SUCH BODY AND FOLLOWING  AN  OPPORTU-
 NITY  FOR  THE PUBLIC TO COMMENT. SUCH ACTION SHALL BE DEEMED VALID UPON
 PASSAGE OF A WRITTEN RESOLUTION  OF  REINSTATEMENT  BY  A  MAJORITY  AND
 RECORDED  VOTE  OF  THE LEGISLATIVE BODY. SUCH RESOLUTION SHALL DESCRIBE
 THE FACTS AND CIRCUMSTANCES BY WHICH THE LEGISLATIVE  BODY  HAS  REACHED
 THIS  DETERMINATION.  IF THE APPOINTING AUTHORITY IS THE CHIEF EXECUTIVE
 OFFICIAL OF THE MUNICIPALITY FOR WHOSE BENEFIT THE LOCAL  AUTHORITY  WAS
 CREATED,  ANY  ACTION  TO  REINSTATE  A  SUSPENDED BOARD MEMBER SHALL BE
 THROUGH AN OFFICIAL ACT OF THE CHIEF EXECUTIVE OFFICIAL. SUCH ACT  SHALL
 BE RECORDED IN WRITING AND SHALL DESCRIBE THE FACTS AND CIRCUMSTANCES BY
 WHICH THE CHIEF EXECUTIVE OFFICIAL REACHED THIS DETERMINATION.
   (B)  WHENEVER  THE  AUTHORITIES  BUDGET OFFICE HAS SUSPENDED THE CHIEF
 EXECUTIVE OFFICER OF A LOCAL AUTHORITY, THE CHAIRPERSON  OF  SUCH  LOCAL
 AUTHORITY MAY INITIATE ACTION TO REINSTATE THE SUSPENDED CHIEF EXECUTIVE
 OFFICER.  ANY  ACTION  TO  REINSTATE A SUSPENDED CHIEF EXECUTIVE OFFICER
 SHALL OCCUR IN A PUBLIC MEETING OF THE BOARD OF DIRECTORS AND  FOLLOWING
 AN  OPPORTUNITY  FOR  THE PUBLIC TO COMMENT. SUCH ACTION SHALL BE DEEMED

 S. 7749                             3
 
 VALID UPON PASSAGE OF A WRITTEN RESOLUTION OF REINSTATEMENT BY A MAJORI-
 TY AND RECORDED VOTE OF THE CURRENT BOARD OF DIRECTORS. SUCH  RESOLUTION
 SHALL  DESCRIBE THE FACTS AND CIRCUMSTANCES BY WHICH THE BOARD OF DIREC-
 TORS REACHED THIS DETERMINATION.
   (C)  FOR  THE PURPOSES OF THIS SECTION, "REINSTATEMENT" SHALL MEAN THE
 RESTORATION OF THE RIGHTS, RESPONSIBILITIES,  POWERS  AND  DUTIES  OF  A
 BOARD MEMBER OR CHIEF EXECUTIVE OFFICER OF A LOCAL AUTHORITY.
   §  2.  This  act shall take effect on the ninetieth day after it shall
 have become a law.

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