S T A T E O F N E W Y O R K
________________________________________________________________________
790
2009-2010 Regular Sessions
I N S E N A T E
January 15, 2009
___________
Introduced by Sen. ALESI -- read twice and ordered printed, and when
printed to be committed to the Committee on Corporations, Authorities
and Commissions
AN ACT to amend the public authorities law, the executive law and the
public officers law, in relation to clarifying the application of the
accountability standards, open meetings law and freedom of information
requirements to local development corporations
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (a) of subdivision 2 of section 2800 of the
public authorities law, as added by chapter 766 of the laws of 2005, is
amended to read as follows:
(a) Every local authority, [continued or created by this chapter or
any other chapter of the laws of the state of New York] PURSUANT TO
SECTION TWO OF THIS CHAPTER shall submit to the chief executive officer,
the chief fiscal officer, the chairperson of the legislative body of the
local government or local governments and the entity established pursu-
ant to section twenty-seven of [the] chapter SEVEN HUNDRED SIXTY-SIX of
the laws of two thousand five [which added this subdivision], within
ninety days after the end of its fiscal year, a complete and detailed
report or reports setting forth: (1) its operations and accomplishments;
(2) its receipts and disbursements, or revenues and expenses, during
such fiscal year in accordance with the categories or classifications
established by such authority for its own operating and capital outlay
purposes; (3) its assets and liabilities at the end of its fiscal year
including the status of reserve, depreciation, special or other funds
and including the receipts and payments of these funds; (4) a schedule
of its bonds and notes outstanding at the end of its fiscal year,
together with a statement of the amounts redeemed and incurred during
such fiscal year as part of a schedule of debt issuance that includes
the date of issuance, term, amount, interest rate and means of repay-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03470-01-9
S. 790 2
ment. Additionally, the debt schedule shall also include all refi-
nancings, calls, refundings, defeasements and interest rate exchange or
other such agreements, and for any debt issued during the reporting
year, the schedule shall also include a detailed list of costs of issu-
ance for such debt; (5) a compensation schedule that shall include, by
position, title and name of the person holding such position or title,
the salary, compensation, allowance and/or benefits provided to any
officer, director or employee in a decision making or managerial posi-
tion of such authority whose salary is in excess of one hundred thousand
dollars; (6) the projects undertaken by such authority during the past
year; (7) a listing of (i) all real property of such authority having an
estimated fair market value in excess of fifteen thousand dollars that
the authority intends to dispose of; (ii) all such property held by the
authority at the end of the period covered by the report; and (iii) all
such property disposed of during such period. The report shall contain
an estimate of fair market value for all such property held by the
authority at the end of the period and the price received by the author-
ity and the name of the purchaser for all such property sold by the
authority during such period; (8) such authority's code of ethics; and
(9) an assessment of the effectiveness of its internal control structure
and procedures.
S 2. Subdivision 2 of section 2801 of the public authorities law, as
added by chapter 766 of the laws of 2005, is amended to read as follows:
2. Local authorities. For the local authority fiscal year ending on or
after December thirty-first, two thousand seven and annually thereafter,
every local authority [heretofore or hereafter continued or created by
this chapter or any other chapter of the laws of the state of New York]
PURSUANT TO SECTION TWO OF THIS CHAPTER shall submit to the chief execu-
tive officer, the chief fiscal officer, the chairperson of the legisla-
tive body of the local government or governments and the entity estab-
lished pursuant to section twenty-seven of [the] chapter SEVEN HUNDRED
SIXTY-SIX of the laws of two thousand five [which added this subdivi-
sion], for their information, annually not less than sixty days before
the commencement of its fiscal year, in the form submitted to its
members or trustees, budget information on operations and capital
construction setting forth the estimated receipts and expenditures for
the next fiscal year and the current fiscal year, and the actual
receipts and expenditures for the last completed fiscal year.
S 3. Subdivision 1 of section 2895 of the public authorities law, as
added by chapter 766 of the laws of 2005, is amended to read as follows:
1. "Contracting officer" shall mean the officer or employee of a
public authority OR LOCAL AUTHORITY PURSUANT TO SECTION TWO OF THIS
CHAPTER who shall be appointed by resolution of the board of the public
OR LOCAL authority to be responsible for the disposition of property.
S 4. Section 2896 of the public authorities law, as added by chapter
766 of the laws of 2005, is amended to read as follows:
S 2896. Duties of public AND LOCAL authorities with respect to the
disposal of property. 1. Every PUBLIC AND LOCAL authority, as defined in
section two of this chapter, shall adopt by resolution comprehensive
guidelines which shall (a) detail the public OR LOCAL authority's opera-
tive policy and instructions regarding the use, awarding, monitoring and
reporting of contracts for the disposal of property, and (b) designate a
contracting officer who shall be responsible for the public OR LOCAL
authority's compliance with, and enforcement of, such guidelines. Such
guidelines shall be consistent with, and shall require the public OR
LOCAL authority's contracting activities to comply with this section,
S. 790 3
the [authorities] AUTHORITY'S enabling legislation and any other appli-
cable law for the disposal of property, except that such guidelines may
be stricter than the provisions of this section, the authorities enabl-
ing legislation and any other applicable law for the disposal of proper-
ty if the public OR LOCAL authority determines that additional safe-
guards are necessary to assure the integrity of its disposition
activities. Guidelines approved by the public OR LOCAL authority shall
be annually reviewed and approved by the governing body of the public OR
LOCAL authority. On or before the thirty-first day of March in each
year, the public OR LOCAL authority shall file with the comptroller a
copy of the guidelines most recently reviewed and approved by the public
OR LOCAL authority, including the name of the public OR LOCAL authori-
ty's designated contracting officer. At the time of filing such guide-
lines with the comptroller, every public OR LOCAL authority shall also
post such guidelines on the public OR LOCAL authority's internet
website. IF THE LOCAL AUTHORITY DOES NOT MAINTAIN ITS OWN WEBSITE, THEN
THE GUIDELINES SHALL BE POSTED ON THE WEBSITE OF THE LOCALITY WHICH
CREATED SUCH AUTHORITY. Guidelines posted on the public OR LOCAL author-
ity's internet website shall be maintained on such website at least
until the procurement guidelines for the following year are posted on
such website.
2. Each public OR LOCAL authority shall:
a. maintain adequate inventory controls and accountability systems for
all property under its control;
b. periodically inventory such property to determine which property
shall be disposed of;
c. produce a written report of such property in accordance with subdi-
vision three of this section;
d. transfer or dispose of such property as promptly as possible in
accordance with section twenty-eight hundred ninety-seven of this title.
3. a. Each public OR LOCAL authority shall publish, not less frequent-
ly than annually, a report listing all real property of the public OR
LOCAL authority. Such report shall consist of a list and full
description of all real and personal property disposed of during such
period. The report shall contain the price received by the public OR
LOCAL authority and the name of the purchaser for all such property sold
by [the] SUCH public OR LOCAL authority during such period.
b. The public authority shall deliver copies of such report to the
comptroller, the director of the budget, the commissioner of general
services, and the legislature.
C. THE LOCAL AUTHORITY SHALL DELIVER COPIES OF SUCH REPORT TO THE
COMPTROLLER, THE CHIEF EXECUTIVE OFFICER OF THE LOCALITY, AND THE CHAIR-
PERSON OF THE LEGISLATIVE BODY OF THE LOCAL GOVERNMENT.
S 5. Section 2897 of the public authorities law, as added by chapter
766 of the laws of 2005, is amended to read as follows:
S 2897. Disposal of public OR LOCAL authority property. 1. Supervision
and direction. Except as otherwise provided in this section, the
contracting officer designated by each public OR LOCAL authority shall
have supervision and direction over the disposition of property of such
public OR LOCAL authority.
2. Custody and control. (A) The custody and control of the property of
a public authority, pending its disposition, and the disposal of such
property, shall be performed by the public authority in possession ther-
eof or by the commissioner of general services when so authorized under
this section.
S. 790 4
(B) THE CUSTODY AND CONTROL OF THE PROPERTY OF A LOCAL AUTHORITY,
PENDING ITS DISPOSITION, AND THE DISPOSAL OF SUCH PROPERTY SHALL BE
PERFORMED BY THE LOCAL AUTHORITY IN POSSESSION THEREOF.
3. Method of disposition. Subject to section twenty-eight hundred
ninety-six of this title, any public OR LOCAL authority may dispose of
property for not less than the fair market value of such property by
sale, exchange, or transfer, for cash, credit, or other property, with
or without warranty, and upon such other terms and conditions as the
contracting officer deems proper, and it may execute such documents for
the transfer of title or other interest in property and take such other
action as it deems necessary or proper to dispose of such property under
the provisions of this section. Provided, however, that no disposition
of real property, any interest in real property, or any other property
which because of its unique nature is not subject to fair market pricing
shall be made unless an appraisal of the value of such property has been
made by an independent appraiser and included in the record of the tran-
saction.
4. Sales by the commissioner of general services. When it shall be
deemed advantageous to the state, any public authority may enter into an
agreement with the commissioner of general services where under such
commissioner may dispose of property of such public authority under
terms and conditions agreed to by the public authority and the commis-
sioner of general services. In disposing of any such property of a
public authority, the commissioner of general services shall be bound by
the terms of this title and references to the contracting officer shall
be deemed to refer to such commissioner.
5. Validity of deed, bill of sale, lease, or other instrument. A deed,
bill of sale, lease, or other instrument executed by or on behalf of any
public OR LOCAL authority, purporting to transfer title or any other
interest in property of a public OR LOCAL authority under this title
shall be conclusive evidence of compliance with the provisions of this
title insofar as concerns title or other interest of any bona fide gran-
tee or transferee who has given valuable consideration for such title or
other interest and has not received actual or constructive notice of
lack of such compliance prior to the closing.
6. Bids for disposal; advertising; procedure; disposal by negotiation;
explanatory statement. a. All disposals or contracts for disposal of
property of a public OR LOCAL authority made or authorized by the
contracting officer shall be made after publicly advertising for bids
except as provided in paragraph c of this subdivision.
b. Whenever public advertising for bids is required under paragraph a
of this subdivision:
(i) the advertisement for bids shall be made at such time prior to the
disposal or contract, through such methods, and on such terms and condi-
tions as shall permit full and free competition consistent with the
value and nature of the property;
(ii) all bids shall be publicly disclosed at the time and place stated
in the advertisement; and
(iii) the award shall be made with reasonable promptness by notice to
the responsible bidder whose bid, conforming to the invitation for bids,
will be most advantageous to the state OR THE LOCALITY, price and other
factors considered; provided, that all bids may be rejected when it is
in the public interest to do so.
c. Disposals and contracts for disposal of property may be negotiated
or made by public auction without regard to paragraphs a and b of this
S. 790 5
subdivision but subject to obtaining such competition as is feasible
under the circumstances, if:
(i) the personal property involved is of a nature and quantity which,
if disposed of under paragraphs a and b of this subdivision, would
aversely affect the state or local market for such property, and the
estimated fair market value of such property and other satisfactory
terms of disposal can be obtained by negotiation;
(ii) the fair market value of the property does not exceed fifteen
thousand dollars;
(iii) bid prices after advertising therefor are not reasonable, either
as to all or some part of the property, or have not been independently
arrived at in open competition;
(iv) the disposal will be to the state or any political subdivision,
and the estimated fair market value of the property and other satisfac-
tory terms of disposal are obtained by negotiation;
(v) the disposal is for an amount less than the estimated fair market
value of the property, the terms of such disposal are obtained by public
auction or negotiation, the disposal of the property is intended to
further the public health, safety or welfare or an economic development
interest of the state or a political subdivision (to include but not
limited to, the prevention or remediation of a substantial threat to
public health or safety, the creation or retention of a substantial
number of job opportunities, or the creation or retention of a substan-
tial source of revenues, or where the authority's enabling legislation
permits), the purpose and the terms of such disposal are documented in
writing and approved by resolution of the board of the public authority;
or
(vi) such action is otherwise authorized by law.
d. (i) An explanatory statement shall be prepared of the circumstances
of each disposal by negotiation of:
(A) any personal property which has an estimated fair market value in
excess of fifteen thousand dollars;
(B) any real property that has an estimated fair market value in
excess of one hundred thousand dollars, except that any real property
disposed of by lease or exchange shall only be subject to clauses (C)
through (E) of this subparagraph;
(C) any real property disposed of by lease for a term of five years or
less, if the estimated fair annual rent is in excess of one hundred
thousand dollars for any of such years;
(D) any real property disposed of by lease for a term of more than
five years, if the total estimated rent over the term of the lease is in
excess of one hundred thousand dollars; or
(E) any real property or real and related personal property disposed
of by exchange, regardless of value, or any property any part of the
consideration for which is real property.
(ii) Each such statement shall be transmitted to the persons entitled
to receive copies of the report required under section twenty-eight
hundred ninety-six of this title not less than ninety days in advance of
such disposal, and a copy thereof shall be preserved in the files of the
public or local authority making such disposal.
S 6. Section 51 of the executive law, as added by chapter 766 of the
laws of 2005, is amended to read as follows:
S 51. Jurisdiction. This article shall, subject to the limitations
contained herein, confer upon the office of the state inspector general,
jurisdiction over all covered agencies. For the purposes of this article
"covered agency" shall include all executive branch agencies, depart-
S. 790 6
ments, divisions, officers, boards and commissions, public AND LOCAL
authorities, AS DEFINED IN SECTION TWO OF THE PUBLIC AUTHORITIES LAW
(other than multi-state or multi-national authorities), and public bene-
fit corporations, the heads of which are appointed by the governor and
which do not have their own inspector general by statute. Wherever a
covered agency is a board, commission, a public authority or public
benefit corporation, the head of the agency is the chairperson thereof.
S 7. Subdivision 3 of section 86 of the public officers law, as added
by chapter 933 of the laws of 1977, is amended to read as follows:
3. "Agency" means any state or municipal department, board, bureau,
division, commission, committee, public OR LOCAL authority (AS DEFINED
IN SECTION TWO OF THE PUBLIC AUTHORITIES LAW), public corporation, coun-
cil, office or other governmental entity performing a governmental or
proprietary function for the state or any one or more municipalities
thereof, except the judiciary or the state legislature.
S 8. Subdivision 2 of section 102 of the public officers law, as
amended by chapter 704 of the laws of 1979 and such section as renum-
bered by chapter 652 of the laws of 1983, is amended to read as follows:
2. "Public body" means any entity, for which a quorum is required in
order to conduct public business and which consists of two or more
members, performing a governmental function for the state or for an
agency or department thereof, or for a public corporation as defined in
section sixty-six of the general construction law, OR A LOCAL AUTHORITY
AS DEFINED BY SECTION TWO OF THE PUBLIC AUTHORITIES LAW, or committee or
subcommittee or other similar body of such public body.
S 9. This act shall take effect on the one hundred twentieth day after
it shall have become a law; provided, however, that effective immediate-
ly, the addition, amendment and/or repeal of any rule or regulation
necessary for the implementation of this act on its effective date are
authorized and directed to be made and completed on or before such
effective date.