NY State Senate Bill 2023-S3437

Senate Bill S3437

2023-2024 Legislative Session

Establishes a procedure for appointing a president or chairperson upon a vacancy of such position and corrects certain gendered language

download bill text pdf

Current 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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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to corporations, authorities and commissions
May 16, 2023	reported and committed to finance
Jan 31, 2023	referred to corporations, authorities and commissions

Votes

- May 16, 2023 - Corporations, Authorities And Commissions Committee Vote
  S3437
  
  7
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Corporations, Authorities And Commissions Committee Vote: May 16, 2023
      
      aye (7)
      
      Comrie
      
      Hoylman-Sigal
      
      Mattera
      
      Mayer
      
      Ramos
      
      Skoufis
      
      Weber

2023-S3437 (ACTIVE) - Details

See Assembly Version of this Bill:: A7736
Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Economic Development Law
Laws Affected:: Amd §4, UDC Act; amd §10, Ec Dev L
Versions Introduced in 2021-2022 Legislative Session:: S9148

2023-S3437 (ACTIVE) - Summary

Establishes a procedure for appointing a president or chairperson upon a vacancy of such position; corrects certain gendered language.

2023-S3437 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S3437

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act to amend the New York state urban development corporation act and
the economic development law, in relation to establishing a procedure
for appointing a president or chairperson upon a vacancy of such posi-
tion and correcting certain gendered language

 
PURPOSE:

Establishes a procedure for appointing a president or chairperson upon a
vacancy of such position and corrects certain gendered language.

 
SUMMARY OF PROVISIONS:

Section 1: Amends Section 4 of section 1 of chapter 174 of the laws of
1968 by placing a six-month limit on an acting president or acting chair
of the ESD board. Requires that the President and Chair be separate
offices, that the same person cannot serve in both roles simultaneously,
and that board members cannot be appointed president.  Requires that

President or Chair cannot engage in private employment, or in a profes-
sion or business. Also fixes single gender references.

Section 2: Amends Section 10 of the economic development law by fixing
single gendered references

Section 3: Sets effective date.

 
JUSTIFICATION:

Under current NYS statute, an acting president or acting chair of the
Empire State Development Board appointed by the governor due to a vacan-
cy can stay in the acting role indefinitely. Given that the purpose of
the acting position is to be temporary until a full-time successor can
be confirmed, presents issues to the process.

This bill will fix this issue by placing a six month limit on how long
an acting president or acting chair can serve. In addition, adds that
the President and Chair are separate offices and that the same individ-
ual cannot be actively appointed to both roles.

 
LEGISLATIVE HISTORY:

Senate

2022: S9148, Referred to Corporations, Authorities, and Commissions

Assembly

2022: No Assembly Same-As

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S3437 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3437
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 31, 2023
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Corporations,  Authorities
   and Commissions
 
 AN ACT to amend the New York state urban development corporation act and
   the  economic development law, in relation to establishing a procedure
   for appointing a president or chairperson upon a vacancy of such posi-
   tion and correcting certain gendered language
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Section 4 of section 1 of chapter 174 of the laws of 1968,
 constituting the New  York  state  urban  development  corporation  act,
 subdivisions  1, 1-a and 3 as amended by chapter 280 of the laws of 1984
 and as further amended by section 104 of part A of  chapter  62  of  the
 laws  of  2011,  subdivision  2  as amended by chapter 55 of the laws of
 1992, subdivision 3-a as added by chapter 61 of the laws  of  1975,  and
 subdivisions  7  and 8 as amended by chapter 823 of the laws of 2022, is
 amended to read as follows:
   § 4. New York state urban development corporation. (1) There is hereby
 created the New York state urban  development  corporation.  The  corpo-
 ration shall be a corporate governmental agency of the state, constitut-
 ing  a political subdivision and public benefit corporation. Its member-
 ship shall consist of nine directors as follows: the  superintendent  of
 financial  services,  the  [chairman]  CHAIRPERSON of the New York state
 science and technology foundation, and seven directors to  be  appointed
 by  the  governor  with  the  advice and consent of the senate. From the
 seven directors appointed by him OR HER, the  governor  shall  designate
 the  [chairman]  CHAIRPERSON of the corporation and two others who shall
 all serve at the pleasure of the governor. Of the four remaining  direc-
 tors,  one  of  such directors first appointed by the governor after the
 effective date of this subdivision as amended shall  serve  for  a  term
 ending January first next succeeding his OR HER appointment, one of such
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07043-01-3

 S. 3437                             2
 
 directors  shall serve for a term ending one year from such date, one of
 such directors shall serve for a term ending two years from  such  date,
 and one of such directors shall serve for a term ending three years from
 such  date.  Their  successors shall serve for terms of four years each.
 Directors shall continue in office  until  their  successors  have  been
 appointed  and  qualified.  In  the  event of a vacancy occurring in the
 office of a director by death, resignation or  otherwise,  the  governor
 shall  appoint  a successor with the advice and consent of the senate to
 serve for the balance of the unexpired term. The governor shall  appoint
 the  president  of  the  corporation, with the advice and consent of the
 senate, who shall be the chief executive officer of the corporation  and
 who  shall serve at the pleasure of the governor. Such president may NOT
 be one of the directors appointed by the governor. IN  THE  EVENT  OF  A
 VACANCY  OCCURRING  IN THE OFFICE OF THE PRESIDENT OR THE CHAIRPERSON BY
 DEATH, RESIGNATION OR OTHERWISE, THE GOVERNOR SHALL APPOINT A  SUCCESSOR
 WITH  THE  ADVICE  AND CONSENT OF THE SENATE TO SERVE FOR THE BALANCE OF
 THE UNEXPIRED TERM. THE GOVERNOR MAY DESIGNATE AN  ACTING  PRESIDENT  OR
 CHAIRPERSON  FOR  A PERIOD NOT TO EXCEED SIX MONTHS OR UNTIL A SUCCESSOR
 HAS BEEN CONFIRMED BY THE SENATE, WHICHEVER COMES FIRST.
   (1-a) The superintendent of  financial  services  and  the  [chairman]
 CHAIRPERSON of the New York state science and technology foundation each
 may  designate  a  person from his OR HER department to represent him OR
 HER at all meetings of the corporation from which such director  may  be
 absent.  Any representative so designated shall have the power to attend
 and to vote at any meeting of the corporation from which the director so
 designating him OR HER is absent, with the same force and effect  as  if
 the director designating him OR HER were present and voting. Such desig-
 nation  shall be by written notice filed with the [chairman] CHAIRPERSON
 of the corporation by the director making the  designation.  The  desig-
 nation  of  each such person shall continue until revoked at any time by
 written notice to the [chairman] CHAIRPERSON by the director making  the
 designation.  Such designation shall not limit the power of the director
 making the designation to attend and vote in person at  any  meeting  of
 the corporation.
   (2)  The directors, other than the [chairman] CHAIRPERSON, shall serve
 without salary or other compensation, but each director,  including  the
 [chairman]  CHAIRPERSON,  shall  be entitled to reimbursement for actual
 and necessary expenses incurred in the performance of his or  her  offi-
 cial  duties. Anything to the contrary contained herein notwithstanding,
 the president of the corporation[, whether or not he or she is a  direc-
 tor,]  and  the [chairman if he or she is not the president] CHAIRPERSON
 shall be entitled to receive such salary as the directors may  determine
 for their services as chief executive officer and [chairman] CHAIRPERSON
 respectively.
   (3)   Such  directors  other  than  the  superintendent  of  financial
 services, the [chairman] CHAIRPERSON of the New York state  science  and
 technology  foundation, [and any director who serves as president of the
 corporation] may engage in private employment, or  in  a  profession  or
 business.  The  corporation, its directors, officers and employees shall
 be subject to the provisions of sections seventy-three and  seventy-four
 of the public officers law.
   (3-a) The state shall save harmless and indemnify any person who shall
 have  served  as  a  director,  officer  or  employee of the corporation
 against financial loss or litigation expense arising in connection  with
 any  claim, demand, suit or judgment, or the defense thereof, based on a
 cause of action, whenever accrued, involving allegations that  pecuniary
 S. 3437                             3
 
 harm  was  sustained by any person as a result of any transaction of the
 corporation taking place on or after the effective date of the New  York
 state  project  finance agency act. In the event any such claim, demand,
 suit  or  judgment  shall  occur, a director, officer or employee of the
 corporation shall be saved harmless and indemnified by the  state  under
 this  subdivision  unless  such  individual is found by a final judicial
 determination not to have acted in good faith, for a purpose which he OR
 SHE reasonably believed to be in the best interests of  the  corporation
 or  not  to have had reasonable cause to believe that his OR HER conduct
 was lawful.  In any suit described in the first sentence of this  subdi-
 vision, any director, officer or employee made a party defendant to such
 suit  shall  be  entitled to be represented by private counsel of his OR
 HER choice; provided, however, that the attorney general is  authorized,
 as  a  condition  to  indemnification  of  the fees and expenses of such
 representation, to require that appropriate groups of  such  individuals
 be  represented by the same counsel; and provided further, that with the
 approval of the attorney general or of a court (obtained by  application
 substantially  as  provided  in section seven hundred twenty-five of the
 business corporation law), indemnification for such  fees  and  expenses
 shall  be  paid  from time to time during the pendency of such suit. The
 provisions of this subdivision shall be in addition  to  and  shall  not
 supplant  any  indemnification or other benefits heretofore or hereafter
 conferred upon directors, officers and employees of the  corporation  by
 section  seventeen  of  the public officers law, by action of the corpo-
 ration, or otherwise. The provisions of  this  subdivision  shall  inure
 only  to directors, officers and employees of the corporation, shall not
 enlarge or diminish the rights of any other party, and shall not impair,
 limit or modify the rights and obligations  of  any  insurer  under  any
 policy of insurance.
   (4)  The directors of the corporation shall serve ex officio as direc-
 tors of the corporation for urban development and research of New  York,
 created by the New York state urban development and research corporation
 act, and of the urban development guarantee fund of New York, created by
 the  urban  development  guarantee  fund of New York act. The [chairman]
 CHAIRPERSON of the corporation shall serve as [chairman] CHAIRPERSON  of
 the  corporation  for  urban development and research of New York and of
 the urban development guarantee fund of New York.
   (5) Notwithstanding  any  inconsistent  provisions  of  law,  general,
 special  or  local,  no officer or employee of the state or of any civil
 division thereof, shall be deemed to have forfeited or shall forfeit his
 OR HER office or employment by  reason  of  his  OR  HER  acceptance  of
 membership  on the corporation created by this section; provided, howev-
 er, a director who holds such other public office  or  employment  shall
 receive  no  additional  compensation or allowance for services rendered
 pursuant to this act, but shall be entitled to reimbursement for his  OR
 HER  actual  and  necessary expenses incurred in the performance of such
 services.
   (6) The governor shall appoint a business advisory council  for  urban
 development,  to advise and make recommendations to the corporation with
 respect to development policies and programs and  to  encourage  maximum
 participation  in  projects  of the corporation by the private sector of
 the economy, including members of the council and firms and corporations
 with which they are [affliated] AFFILIATED. Such council  shall  consist
 of not more than twenty-five members, who shall serve at the pleasure of
 the  governor,  and  who shall be broadly representative of commerce and
 industry, the financial  community  and  the  construction  and  housing
 S. 3437                             4
 
 industries.  Such members shall serve without salary, but shall be enti-
 tled to reimbursement for their actual and necessary  expenses  incurred
 in the performance of their duties.
   (7)  The  corporation  shall  establish one or more community advisory
 committees to consider and advise the corporation upon matters submitted
 to them by the corporation concerning the development of any area or any
 project, and may establish rules and regulations with  respect  to  such
 committees.  The corporation or its successor shall publish and maintain
 a  list of all community advisory committee members, and community advi-
 sory committee meeting agendas, materials, and minutes on  its  website.
 Meeting  agendas  and materials shall be posted on such website at least
 one business day in advance of community  advisory  committee  meetings.
 All upcoming meeting times and locations shall be posted on such website
 at  least  one  week in advance.   Community advisory committee meetings
 shall be accessible for the public to view and attend live.  The members
 of such community advisory committees shall serve, at  the  pleasure  of
 the  corporation, without salary, but shall be entitled to reimbursement
 for their actual and necessary expenses incurred in the  performance  of
 their  duties. Notwithstanding any inconsistent provision of law, gener-
 al, special or local, no officer or employee of  the  state  or  of  any
 civil  division  thereof,  shall  be  deemed  to have forfeited or shall
 forfeit his or her office or employment by reason of his or her  accept-
 ance of membership on such community advisory committee.
   (8)  The  governor may remove any director appointed by him or her for
 inefficiency, neglect of duty or misconduct in office after  giving  him
 or  her  a copy of the charges against him or her, and an opportunity to
 be heard, in person or by counsel, in his or her defense, upon not  less
 than ten days' notice. If any such director shall be removed, the gover-
 nor  shall  file  in  the  office  of the department of state a complete
 statement of charges made against such director and his or her  findings
 thereon,  together with a complete record of the proceeding. The forego-
 ing provisions shall not apply in the case of the  chairperson  and  any
 other director who serves at the pleasure of the governor.
   (9)  The  corporation and its corporate existence shall continue until
 terminated by law, provided, however, that no such law shall take effect
 so long as the corporation shall have bonds, notes and other obligations
 outstanding, unless adequate provision has been  made  for  the  payment
 thereof  in  the  documents  securing  the same. Upon termination of the
 existence of the corporation, all its rights and properties  shall  pass
 to and be vested in the state.
   (10)  A  majority  of  the directors of the corporation then in office
 shall constitute a quorum for the transaction of  any  business  or  the
 exercise  of  any power or function of the corporation, except as other-
 wise provided in SUBDIVISION TWO OF section sixteen[,  subdivision  two,
 hereof]  OF THIS ACT. The corporation may delegate to one or more of its
 directors, or its officers, agents and employees, such powers and duties
 as it may deem proper.
   (11) The corporation shall take affirmative  action  in  working  with
 construction  firms,  contractors  and  subcontractors, labor unions and
 manufacturing and industrial firms, to the end that residents  of  areas
 in  which  projects are to be located shall be afforded participation in
 the construction work on projects of the corporation, and in  the  busi-
 ness  operations  of tenants and occupants of industrial projects under-
 taken by the corporation.
   § 2. Section 10 of the economic development law, as amended by chapter
 839 of the laws of 1987, is amended to read as follows:
 S. 3437                             5
 
   § 10. Department of economic development; commissioner. There shall be
 in the state government a department of economic development.  The  head
 of  the department shall be the commissioner of economic development who
 shall be appointed by the governor, by and with the advice  and  consent
 of the senate, and hold office until the end of the term of the governor
 by  whom  he  OR  SHE  was  appointed  and until his OR HER successor is
 appointed and has qualified. The  principal  office  of  the  department
 shall  be in the city of Albany. Regional offices may be established and
 maintained by the department in such  places  as  the  commissioner  may
 determine  and for which appropriations are made by the legislature. The
 commissioner may, with the commissioners of general services,  transpor-
 tation  and  labor,  develop  and  institute a procedure for the uniform
 collection of employment and economic data within the state for  use  in
 connection with the scheduling of public works projects.
   § 3. This act shall take effect immediately.

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