NY State Senate Bill 2009-S7907

Senate Bill S7907

2009-2010 Legislative Session

Authorizes the comptroller and each examiner of municipal affairs to examine the financial affairs of certain organizations controlled by local government entities

download bill text pdf

Archive: Last Bill Status - In Assembly 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
Jun 22, 2010	referred to ways and means delivered to assembly passed senate
Jun 14, 2010	advanced to third reading
Jun 10, 2010	2nd report cal.
Jun 09, 2010	1st report cal.927
May 21, 2010	referred to local government

Votes

- Jun 22, 2010 - Floor Vote
  S7907
  
  54
  
  Aye
  
  7
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 22, 2010
      
      aye (54)
      
      Adams
      
      Addabbo Jr.
      
      Alesi
      
      Aubertine
      
      Bonacic
      
      Breslin
      
      Diaz
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Foley
      
      Fuschillo
      
      Golden
      
      Griffo
      
      Hannon
      
      Hassell-Thompson
      
      Huntley
      
      Johnson
      
      Klein
      
      Krueger
      
      Kruger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Leibell
      
      Libous
      
      Little
      
      Marcellino
      
      Maziarz
      
      McDonald
      
      Montgomery
      
      Nozzolio
      
      Onorato
      
      Oppenheimer
      
      Parker
      
      Peralta
      
      Perkins
      
      Ranzenhofer
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Schneiderman
      
      Serrano
      
      Seward
      
      Smith
      
      Squadron
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      Young
      
      nay (7)
      
      DeFrancisco
      
      Flanagan
      
      Johnson
      
      Padavan
      
      Skelos
      
      Volker
      
      Winner
      
      excused (1)
      
      Morahan
  Jun 9, 2010 - Local Government Committee Vote
  S7907
  
  6
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Local Government Committee Vote: Jun 9, 2010
      
      aye (6)
      
      Johnson
      
      Little
      
      Oppenheimer
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      aye wr (1)
      
      Bonacic
      
      excused (1)
      
      Morahan

co-Sponsors

View additional co-sponsors

2009-S7907 (ACTIVE) - Details

See Assembly Version of this Bill:: A11088
Current Committee:: Assembly Ways And Means
Law Section:: General Municipal Law
Laws Affected:: Amd §34, Gen Muni L

2009-S7907 (ACTIVE) - Summary

Authorizes the comptroller and each examiner of municipal affairs to examine the financial affairs of certain organizations controlled by local government entities.

2009-S7907 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S7907

 TITLE OF BILL :
An act to amend the general municipal law, in relation to audits by
the state comptroller of certain organizations controlled by local
government entities


 PURPOSE :
This bill would amend section 34 of the General Municipal Law to
Authorize the State Comptroller to examine into the financial affairs
of local government subsidiary organizations.  The term "local
government subsidiary organization" would mean any organization, other
than an entity already subject to audit by the Comptroller, that is
controlled by one or more municipal corporations or other local
government entities subject to audit by the Comptroller pursuant to
the General Municipal Law. The circumstances under which an
organization is considered to be under the control of one or more
municipal corporations or other local government entities would
include, but not be limited to, any situation where municipal or local
government officials select or serve as either a majority of the
organization's highest policy-making body or the organization's chief
executive officer.

 JUSTIFICATION :
In Recent years, municipal corporations and other local government

entities have relied on a variety of separate and legally distinct
organizations to perform various functions (e.g. local development
corporations organized under Section 1411 of the Not-Far-Profit
Corporation Law:  a limited liability company organized under the
Limited Liability Company; a for-profit corporation apparently
organized under the Business Corporation Law). Under current law, when
a municipal corporation or other local government entity has a
financial or business relationship with another legally distinct
organization, the Comptroller may examine that relationship, but only
as part of an audit of the municipal corporation or other local
government entity.  Even in the context of such an audit, there is no
authority for the Comptroller to look beyond the financial or business
relationship, to examine the organizations overall finances and
operations.

Similarly, there is no express authority for the Comptroller to
separately audit the overall finances or operations of such an
organization. This bill would expand the Comptroller's express audit
authority to include audits of such organizations having a financial
or business relationship with a municipal corporation or other local
government entity, but only when the organization is under the control
of one or more municipal corporations or other local government
entities.

This expansion of the Comptroller's audit is necessary to promote and
increase transparency in municipal and local government finances and
operations because an organization that is under the control of a
municipal corporation or local government entity functions as an
instrumentality of that municipal corporation or local government
entity, it is necessary to examine the finances and operations of
organizations controlled by the municipal corporation or local
government entity. To avoid creating incentives or distinctive or
disincentives to the use of any particular organization, this bill
would apply to every type of organization that is under the control of
a municipal corporation or other local government entity, except an
organization already subject to audit by the Comptroller.

The Comptroller urges the passage of this legislation.

 EFFECTIVE DATE :
Immediately.

2009-S7907 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7907

                            I N  S E N A T E

                              May 21, 2010
                               ___________

Introduced  by  Sens. STEWART-COUSINS, KLEIN, KRUEGER, ONORATO, PERALTA,
  STAVISKY -- (at request of the State Comptroller) --  read  twice  and
  ordered  printed, and when printed to be committed to the Committee on
  Local Government

AN ACT to amend the general municipal law, in relation to audits by  the
  state comptroller of certain organizations controlled by local govern-
  ment entities

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 34 of the general  municipal  law,  as  amended  by
chapter 233 of the laws of 2006, is amended to read as follows:
  S  34.  Powers  and  duties  of examiners. 1. The comptroller and each
examiner of municipal affairs shall  have  power  to  examine  into  the
financial affairs of every such municipal corporation, industrial devel-
opment agency, district, [fire company as defined in section two hundred
four-a  of this chapter,] agency and activity [and], ANY FIRE COMPANY AS
DEFINED IN SECTION TWO HUNDRED FOUR-A OF THIS  CHAPTER,  AND  ANY  OTHER
ORGANIZATION, EXCEPT A PUBLIC CORPORATION, THAT IS DIRECTLY OR INDIRECT-
LY  CONTROLLED BY ONE OR MORE OF ANY SUCH MUNICIPAL CORPORATIONS, INDUS-
TRIAL DEVELOPMENT AGENCIES, DISTRICTS OR AGENCIES. AN ORGANIZATION SHALL
BE DEEMED UNDER THE CONTROL  OF  ONE  OR  MORE  MUNICIPAL  CORPORATIONS,
INDUSTRIAL DEVELOPMENT AGENCIES, DISTRICTS OR AGENCIES WHEN, AMONG OTHER
CIRCUMSTANCES,  THE  LAW  OR  DOCUMENTS  ESTABLISHING THE ORGANIZATION'S
INTERNAL GOVERNANCE PROVIDE FOR ONE OR MORE OFFICERS OR EMPLOYEES OF ANY
SUCH MUNICIPAL CORPORATION, INDUSTRIAL DEVELOPMENT AGENCY,  DISTRICT  OR
AGENCY,  ACTING  IN THEIR OFFICIAL CAPACITIES, TO: (A) SELECT A MAJORITY
OF A QUORUM OF THE ORGANIZATION'S  HIGHEST  POLICY-MAKING  BODY  OR  THE
ORGANIZATION'S CHIEF EXECUTIVE OFFICER; (B) CONSTITUTE A MAJORITY OF THE
VOTING STRENGTH THAT SELECTS EITHER A MAJORITY OF A QUORUM OF THE ORGAN-
IZATION'S  HIGHEST POLICY-MAKING BODY OR THE ORGANIZATION'S CHIEF EXECU-
TIVE OFFICER; OR (C) SERVE EX OFFICIO AS EITHER: (I)  A  MAJORITY  OF  A
QUORUM OF THE ORGANIZATION'S HIGHEST POLICY-MAKING BODY; (II) THE ORGAN-
IZATION'S  CHIEF  EXECUTIVE OFFICER; OR (III) A PARTNER IN THE ORGANIZA-
TION. AN ORGANIZATION UNDER THE CONTROL OF ONE OR MORE MUNICIPAL  CORPO-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD17014-01-0

S. 7907                             2

RATIONS,  INDUSTRIAL  DEVELOPMENT  AGENCIES, DISTRICTS OR AGENCIES SHALL
ALSO INCLUDE ANY OTHER ORGANIZATION THAT IS CONTROLLED BY SUCH ORGANIZA-
TION.
  2. IN CONNECTION WITH ANY EXAMINATION AUTHORIZED BY SUBDIVISION ONE OF
THIS  SECTION,  THE  COMPTROLLER  AND EACH EXAMINER OF MUNICIPAL AFFAIRS
SHALL HAVE POWER to administer an oath to any person whose testimony may
be required, and to compel the appearance and attendance of such  person
for  the  purpose  of  any  such  examination and investigation, and the
production of books and papers. In the case of a municipal  corporation,
industrial  development agency, or school district, no such person shall
be compelled to appear or be examined elsewhere than within such munici-
pal corporation, industrial development agency, or school  district.  In
the  case  of  any district other than a school district, no such person
may be compelled to appear or be examined elsewhere than within the town
or one of the towns  in  which  such  district  or  portion  thereof  is
located. In the case of an urban renewal agency, no such person shall be
compelled  to  appear  or  be examined outside the municipal corporation
wherein such agency is established. In the case of a  fire  company,  no
such person shall be compelled to appear or be examined outside the area
served  by the company. In the case of an activity, no such person shall
be compelled to appear outside the area served by the activity.  IN  THE
CASE  OF  AN  ORGANIZATION  UNDER  THE  CONTROL OF ONE OR MORE MUNICIPAL
CORPORATIONS, INDUSTRIAL DEVELOPMENT AGENCIES, DISTRICTS OR AGENCIES, NO
SUCH PERSON SHALL BE COMPELLED TO APPEAR OR TO BE EXAMINED  OUTSIDE  THE
COUNTY IN WHICH THE ORGANIZATION HAS ITS PRINCIPAL HEADQUARTERS. Willful
false swearing in such examination shall be perjury and shall be punish-
able as such.
  S 2. This act shall take effect immediately.

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Senate Bill S7907

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Sponsored By

Andrea Stewart-Cousins

Archive: Last Bill Status - In Assembly Committee

co-Sponsors

Jeffrey D. Klein

Liz Krueger

George Onorato

Jose Peralta

2009-S7907 (ACTIVE) - Details

2009-S7907 (ACTIVE) - Summary

2009-S7907 (ACTIVE) - Sponsor Memo

2009-S7907 (ACTIVE) - Bill Text download pdf

Comments