S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7476
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                May 6, 2019
                                ___________
 
 Introduced  by M. of A. MAGNARELLI, THIELE, BRONSON, BUCHWALD, McDONALD,
   GALEF, ROZIC -- (at request of the State Comptroller) -- read once and
   referred to the Committee on Local Governments
 
 AN ACT to amend the general municipal law,  in  relation  to  audits  of
   governmentally controlled 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:
   §  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  STATEWIDE  ASSOCIATION OF LOCAL GOVERNMENTS OR
 LOCAL GOVERNMENT OFFICIALS, THAT IS CONTROLLED BY ONE  OR  MORE  OF  ANY
 SUCH  MUNICIPAL CORPORATIONS, INDUSTRIAL 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 ONE OR MORE INDIVIDUALS WHO SERVE AS OFFICERS
 OR EMPLOYEES OF ANY SUCH MUNICIPAL CORPORATION,  INDUSTRIAL  DEVELOPMENT
 AGENCY,  DISTRICT  OR AGENCY: (A) SELECT EITHER A MAJORITY OF THE ORGAN-
 IZATION'S HIGHEST POLICY-MAKING BODY OR THE ORGANIZATION'S CHIEF  EXECU-
 TIVE  OFFICER;  (B)  CONSTITUTE  A  MAJORITY OF THE VOTING STRENGTH THAT
 SELECTS EITHER A MAJORITY OF THE  ORGANIZATION'S  HIGHEST  POLICY-MAKING
 BODY  OR  THE  ORGANIZATION'S  CHIEF EXECUTIVE OFFICER; OR (C) SERVE AS:
 (I) A MAJORITY OF THE ORGANIZATION'S HIGHEST POLICY-MAKING BODY; (II) IN
 HIS OR HER OFFICIAL CAPACITY, THE ORGANIZATION'S CHIEF  EXECUTIVE  OFFI-
 CER;  OR  (III) IN HIS OR HER OFFICIAL CAPACITY, A PARTNER IN THE ORGAN-
 IZATION. AN ORGANIZATION UNDER THE CONTROL  OF  ONE  OR  MORE  MUNICIPAL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08963-01-9

 A. 7476                             2
 
 CORPORATIONS,  INDUSTRIAL  DEVELOPMENT  AGENCIES,  DISTRICTS OR AGENCIES
 SHALL ALSO INCLUDE ANY OTHER ORGANIZATION THAT  IS  CONTROLLED  BY  SUCH
 ORGANIZATION.
   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.
   3. FOR PURPOSES OF THIS SECTION, THE TERM "A MAJORITY OF THE ORGANIZA-
 TION'S  HIGHEST  POLICY-MAKING  BODY" SHALL MEAN A MAJORITY OF THE WHOLE
 NUMBER OF POSITIONS COMPRISING SUCH BODY, PROVIDED, HOWEVER, THAT IF THE
 DOCUMENTS ESTABLISHING THE ORGANIZATION'S INTERNAL GOVERNANCE ALLOW SUCH
 BODY TO ACT BY A MAJORITY OF A QUORUM,  THEN  SUCH  TERM  SHALL  MEAN  A
 MAJORITY OF THE QUORUM.
   § 2. This act shall take effect immediately.