S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8121
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             October 13, 2023
                                ___________
 
 Introduced  by  M. of A. THIELE, OTIS, BRONSON -- read once and referred
   to the Committee on Corporations, Authorities and Commissions
 
 AN ACT to amend the public authorities law and the not-for-profit corpo-
   ration law, in relation to reviews by the  authorities  budget  office
   and  granting  the authorities budget office the authority to commence
   an action or special proceeding to annul the  corporate  existence  or
   dissolve  a corporation that has acted beyond its capacity or power or
   to restrain it from carrying on unauthorized activities
 
   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 8 to read as follows:
   § 8. REPORTS OF  PUBLIC  AUTHORITIES  BY  AUTHORITIES  BUDGET  OFFICE;
 RECOMMENDATIONS  FOR  CORRECTIVE ACTION. WHENEVER THE AUTHORITIES BUDGET
 OFFICE ISSUES A LETTER OR REPORT REGARDING THE ACTIVITIES AND OPERATIONS
 OF ANY PUBLIC AUTHORITY, THE HEAD OF  THE  PUBLIC  AUTHORITY  WHICH  THE
 LETTER OR REPORT WAS ABOUT SHALL SUBMIT A WRITTEN RESPONSE TO THE LETTER
 OR  REPORT WITHIN THIRTY DAYS OF THE RECEIPT OF THE LETTER OR REPORT. IF
 THE LETTER OR REPORT MAKES RECOMMENDATIONS FOR CORRECTIVE  ACTION,  SUCH
 HEAD  SHALL  REPORT WITHIN ONE HUNDRED EIGHTY DAYS AFTER RECEIPT THEREOF
 TO THE AUTHORITIES BUDGET OFFICE WHAT STEPS WERE TAKEN TO IMPLEMENT SUCH
 RECOMMENDATIONS, AND, WHERE RECOMMENDATIONS WERE  NOT  IMPLEMENTED,  THE
 REASONS  THEREFOR. FAILURE TO COMPLY WITH THE PROVISIONS OF THIS SECTION
 SHALL MAKE THE AUTHORITY DELINQUENT IN ITS REPORTING REQUIREMENTS.
   § 2. Subdivision 3 of section 2800 of the public authorities  law,  as
 amended  by  chapter  766  of  the  laws  of 2005, is amended to read as
 follows:
   3. Every financial  report  submitted  under  this  section  shall  be
 approved  by the board and shall be certified, UNDER PENALTY OF PERJURY,
 in writing by the chief executive officer and the chief financial  offi-
 cer  of  such  authority  that  based on the officer's knowledge (a) the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11219-01-3
              

 A. 8121                             2
 
 information provided therein is accurate, correct and does  not  contain
 any  untrue  statement  of material fact; (b) does not omit any material
 fact which, if omitted, would  cause  the  financial  statements  to  be
 misleading in light of the circumstances under which such statements are
 made;  and  (c)  fairly  presents in all material respects the financial
 condition and results of operations of the authority as of, and for, the
 periods presented in the financial statements.   A KNOWING  AND  WILLFUL
 VIOLATION OF THIS SECTION SHALL CONSTITUTE PERJURY IN THE THIRD DEGREE.
   §  3.  Subdivision 2 of section 2824 of the public authorities law, as
 added by section 766 of the laws of 2005, is amended to read as follows:
   2. (A) Individuals appointed to the board of a public authority  shall
 participate in state approved training regarding their legal, fiduciary,
 financial  and  ethical  responsibilities  as  directors of an authority
 within one year of appointment to a board. Board members  shall  partic-
 ipate  in such continuing training as may be required to remain informed
 of best practices, regulatory and  statutory  changes  relating  to  the
 effective oversight of the management and financial activities of public
 authorities and to adhere to the highest standards of responsible gover-
 nance.
   (B) EXCEPT AS OTHERWISE PROVIDED IN THIS CHAPTER, A MEMBER IN NON-COM-
 PLIANCE WITH THE REQUIREMENTS SET FORTH IN THIS SECTION SHALL BE SUBJECT
 TO  THE  ENFORCEMENT  POWERS OF THE AUTHORITIES BUDGET OFFICE, INCLUDING
 BUT NOT LIMITED TO REMOVAL FROM THE BOARD OF SAID PUBLIC  AUTHORITY.  IF
 AN  INDIVIDUAL  APPOINTED  TO  THE  BOARD OF A PUBLIC AUTHORITY DOES NOT
 COMPLETE THEIR STATE APPROVED TRAINING PURSUANT TO PARAGRAPH (A) OF THIS
 SUBDIVISION THE AUTHORITY BUDGET OFFICE SHALL NOTIFY SAID INDIVIDUAL  OF
 THEIR OFFICIAL SUSPENSION AS A BOARD MEMBER. THE SUSPENSION SHALL BE FOR
 A  PERIOD  OF  THREE  MONTHS AND SHALL COMMENCE WITH RECEIPT OF OFFICIAL
 NOTICE OF THE SUSPENSION BY THE AUTHORITIES BUDGET OFFICE.  THE  SUSPEN-
 SION  SHALL  BE  TERMINATED  IF  SUCH  INDIVIDUAL COMPLETES THE REQUIRED
 TRAINING WITHIN THE THREE MONTH SUSPENSION PERIOD.  IF  SUCH  INDIVIDUAL
 FAILS  TO  COMPLETE THE REQUIRED TRAINING WITHIN THE THREE MONTH SUSPEN-
 SION PERIOD, THE AUTHORITIES BUDGET OFFICE  MAY  REMOVE  THE  INDIVIDUAL
 FROM THE PUBLIC AUTHORITY BOARD.
   (C)  AN INDIVIDUAL THAT HAS BEEN REMOVED FROM A PUBLIC AUTHORITY BOARD
 BY THE AUTHORITIES BUDGET OFFICE  PURSUANT  TO  PARAGRAPH  (B)  OF  THIS
 SUBDIVISION,  MAY ONLY BE REINSTATED TO THAT PUBLIC AUTHORITY BOARD ONCE
 THEY PROVIDE THE AUTHORITIES BUDGET OFFICE WITH OFFICIAL NOTICE CONFIRM-
 ING THE TRAINING REQUIREMENTS SET FORTH IN PARAGRAPH (A) OF THIS  SUBDI-
 VISION HAVE BEEN MET.
   §  4.  Section 104 of the not-for-profit corporation law is amended by
 adding a new paragraph (h) to read as follows:
   (H) IF AN INSTRUMENT WHICH IS DELIVERED TO THE DEPARTMENT OF STATE FOR
 FILING RELATES TO  A  NOT-FOR-PROFIT  CORPORATION  CREATED  PURSUANT  TO
 SECTION FOURTEEN HUNDRED ELEVEN OF THIS CHAPTER OR TO AN ENTITY THAT MAY
 BE DEEMED A LOCAL AUTHORITY AS DEFINED BY SUBDIVISION TWO OF SECTION TWO
 OF  THE  PUBLIC  AUTHORITIES LAW, THE  DEPARTMENT OF STATE SHALL REVIEW,
 MAKE, CERTIFY AND TRANSMIT ELECTRONICALLY A COPY OF EACH SUCH INSTRUMENT
 RELATING TO LOCAL ECONOMIC DEVELOPMENT TO THE AUTHORITIES BUDGET OFFICE.
   § 5. Paragraphs (i) and (j) of subdivision  2  of  section  6  of  the
 public authorities law, as added by chapter 506 of the laws of 2009, are
 amended and a new paragraph (k) is added to read as follows:
   (i)  compel any authority which is deemed to be in non-compliance with
 this title and title one of this article or article nine of this chapter
 to submit to the authorities budget office  a  detailed  explanation  of
 such failure to comply; [and]
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   (j)  commence  a special proceeding in supreme court, when it does not
 receive from a state or local authority upon request information, books,
 records or other documentation necessary to perform its duties,  seeking
 an order directing the production of the same[.]; AND
   (K)  COMMENCE  AN  ACTION OR SPECIAL PROCEEDING TO ANNUL THE CORPORATE
 EXISTENCE OR DISSOLVE A CORPORATION THAT HAS ACTED BEYOND  ITS  CAPACITY
 OR POWER OR TO RESTRAIN IT FROM CARRYING ON UNAUTHORIZED ACTIVITIES.
   §  6.  This  act shall take effect on the ninetieth day after it shall
 have become a law.