Senate Bill S1743

                                
 
BILL NUMBER: S1743

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act to amend the New York state urban development corporation act, in
relation to obligations of members of economic development entities

 
PURPOSE:

To increase transparency of the Regional Economic Development Councils
that provide advice or recommendations on the allocation or disbursement
of state or federal moneys and ensure that members of such councils do
not have conflicts of interest related to such advice.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 1 of chapter 174 of the laws of
1968, constituting the New York state urban development corporation act,
by adding a new section 32-a to establish special provisions relating to
economic development entities including that:
              

1. For purpose of this section, an "economic development entity" shall
mean any entity created by the executive branch, and any state agency
whose function includes providing advice, recommendations or determi-
nations to or on behalf of the executive branch or any state agency, on
the allocation or disbursement of state or federal monies or tax credits
and/or benefits.

2. The provisions of article seven of the public officers law public
officers law applicable to agencies shall apply to an economic develop-
ment entity.

3. In addition to the requirements of subdivision 3 of section eighty-
seven of the public officers law, an economic development entity shall
maintain and make available for public inspection and copying any and
all proposals submitted to it through a centralized process.

4. For purposes of public officers law section seventy-three-a, any
member of an economic development entity shall be deemed a state officer
or employee and shall be deemed a policy maker and shall file an annual
statement of financial disclosure set forth in subdivision 3 of public
officers law section seventy-three-a.

Section 2 is the effective date.

 
JUSTIFICATION:

Public Officers Law section 73-a governs financial disclosure rules for
various state officers and employees. Articles 6 and 7 of the public
officers govern the freedom of information law rules and open meetings
law rules, respectively.

Currently, Regional Economic Development Councils (REDCs) are not
covered by these laws yet they have significant input into the distrib-
ution of billions of dollars of state funds.

Since its inception in 2011, REDC have been empowered to help direct
more than $5.4 billion of state moneys to community development projects
throughout the State. The 2018-19 State budget provides for an eighth
round of REDCs awards with up to $750 million to fund regional priority
projects which, once again, the REDCs will have a significant role in
directing. Despite having influence over bill ions of dollars of state
moneys, members of the REDCs do not file any financial disclosure state-
ments; most of their meetings are not open to the public; and they do
not make most of their records available to the public for inspection
and copying.

This bill would provide much needed increased transparency of the REDCs
by ensuring its members file financial disclosures statements as
required by other state officers and employees and are subject of the
requirements of the open meetings law and freedom of information law.

 
LEGISLATIVE HISTORY:

2020: S4290 Referred to Corporations, Authorities and Commissions

Assembly

2020: A1597 Referred to Economic Development

2018: Al 0849 referred to economic development

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that those
incumbents who have not filed a disclosure from for the calendar year
2018 shall have thirty days from the effective date of this act to file
such forms with the joint commission on public ethics.