S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5851
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 20, 2019
                                ___________
 
 Introduced  by  M.  of A. BARCLAY, KOLB, BLANKENBUSH, CROUCH, GARBARINO,
   GIGLIO, GOODELL, HAWLEY, LAWRENCE,  McDONOUGH,  MONTESANO,  RA,  RAIA,
   STEC,  FRIEND,  B. MILLER, FINCH, WALSH, BRABENEC, ASHBY, SMITH, MIKU-
   LIN, NORRIS, TAGUE,  MORINELLO,  LiPETRI,  MANKTELOW,  SALKA,  BYRNES,
   WALCZYK -- Multi-Sponsored by -- M. of A. FITZPATRICK -- read once and
   referred to the Committee on Ways and Means
 
 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
 government has failed to live up to  its  responsibility.  Often  times,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09256-01-9

 A. 5851                             2
 
 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
 PUBLIC BENEFIT CORPORATION, AS IT MAY REASONABLY REQUEST  TO  CARRY  OUT
 ITS POWERS AND DUTIES PURSUANT TO THIS SUBDIVISION;

 A. 5851                             3
 
   (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-
 TION, OR ALLOCATION FROM A LUMP SUM APPROPRIATION SHALL  BE  SUBJECT  TO
 THE FOLLOWING:

 A. 5851                             4
 
   (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.
   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

 A. 5851                             5
 
 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  TWENTY-ONE
 AND FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY, 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,
 THE TEMPORARY PRESIDENT OF THE SENATE AND THE  MINORITY  LEADER  OF  THE
 SENATE DETAILING THE RESULTS OF SUCH STUDIES DESCRIBED IN PARAGRAPHS (A)

 A. 5851                             6
 
 AND  (B)  OF  SUBDIVISION  ONE OF THIS SECTION WITHIN ONE YEAR AFTER THE
 EFFECTIVE DATE OF THIS SECTION.
   § 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
 MINORITY  LEADER  OF  THE  SENATE,  THE  SPEAKER OF THE ASSEMBLY AND THE
 MINORITY LEADER OF THE ASSEMBLY AND MADE  AVAILABLE  FOR  PUBLIC  REVIEW
 ONLINE.

 A. 5851                             7
 
   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 EFFECTIVE DATE OF THIS SECTION.
   § 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.
 
                                  PART G

 A. 5851                             8
 
   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.