NY State Senate Bill 2021-S7445

Senate Bill S7445

2021-2022 Legislative Session

Prohibits individuals in certain positions from taking any position with a business or entity doing business with an agency or industrial development authority

download bill text pdf

Archive: Last Bill Status - Passed Senate & Assembly

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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 01, 2022	returned to senate passed assembly ordered to third reading rules cal.458 substituted for a8200b referred to codes delivered to assembly passed senate ordered to third reading cal.1771 committee discharged and committed to rules
May 25, 2022	print number 7445b
May 25, 2022	amend and recommit to local government
May 10, 2022	print number 7445a
May 10, 2022	amend (t) and recommit to local government
Jan 05, 2022	referred to local government
Oct 18, 2021	referred to rules

Votes

- Jun 1, 2022 - Floor Vote
  S7445
  
  60
  
  Aye
  
  3
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 1, 2022
      
      aye (60)
      
      Addabbo Jr.
      
      Akshar
      
      Bailey
      
      Biaggi
      
      Boyle
      
      Breslin
      
      Brisport
      
      Brooks
      
      Brouk
      
      Cleare
      
      Comrie
      
      Cooney
      
      Felder
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Jordan
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Mattera
      
      May
      
      Mayer
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Reichlin-Melnick
      
      Ritchie
      
      Rivera
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Weik
      
      nay (3)
      
      Borrello
      
      Martucci
      
      Rath III
  Jun 1, 2022 - Rules Committee Vote
  S7445
  
  18
  
  Aye
  
  0
  
  Nay
  
  3
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 1, 2022
      
      aye (18)
      
      Addabbo Jr.
      
      Bailey
      
      Biaggi
      
      Breslin
      
      Comrie
      
      Gallivan
      
      Gianaris
      
      Kennedy
      
      Krueger
      
      Liu
      
      Mayer
      
      O'Mara
      
      Ortt
      
      Parker
      
      Ritchie
      
      Savino
      
      Sepúlveda
      
      Stewart-Cousins
      
      aye wr (3)
      
      Boyle
      
      Griffo
      
      Lanza

Bill Amendments

Original

B (Active)

2021-S7445 - Details

Law Section:: General Municipal Law
Laws Affected:: Amd §883, Gen Muni L
Versions Introduced in 2023-2024 Legislative Session:: S520

2021-S7445 - Summary

Prohibits individuals in certain positions from taking any position with a business or entity doing business with an agency or industrial development authority.

2021-S7445 - Sponsor Memo

                                 
BILL NUMBER: S7445

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the general municipal law and the public officers law,
in relation to prohibiting individuals in certain positions from taking
any position with a business or entity doing business with an industrial
development authority

 
PURPOSE OR GENERAL IDEA OF BILL:

To prohibit individuals in certain positions from taking any position
with a business or entity doing business with an industrial development
agency and to provide penalties for violations

 
SUMMARY OF PROVISIONS:

Section 1 amends Section 883 of the General Municipal Law with the
following provisions:

Subdivision 2 prohibits any IDA Board member, trustee, employee, .or

independent contractor, including attorneys, of the IDA to take a posi-
tion paid or unpaid - with any business or entity doing business with
the IDA,-including applying for or receiving a tax exemption or any
other benefit determined or granted by the IDA. This shall apply for the
duration of their tenure and until three years after such Board member,
trustee, employee, Or independent contractor concludes their role with
the IDA.

Subdivision 3 prohibits any elected official, officer, or employee at
any level of government (municipal, county, or State) may serve as an
IDA Board member, trustee, employee, or independent contractor of the
IDA. Nor shall any elected official, government officer, or government
employee take a position - paid or unpaid - with any business or entity
doing business with the IDA, including applying for or receiving a tax
exemption or benefit determined or granted by the IDA. This shall apply
for the duration of their tenure and until three years after such
elected official, government officer, or government employee concludes
their government role,

Subdivision 4 states that when any person violates subdivision 2 and 3
and is compensated or receives a benefit as a result of their prohibited
actions, said person shall pay restitution to the IDA equal to the
amount of compensation or benefit received. In addition, said person
shall pay a civil penalty to the IDA equal to ten times the amount to be
restituted. These penalties shall be in addition to any criminal liabil-
ity.

Section 2 amends section 73 of the Public Officer's law by adding a new
subdivision 19 with the following provision:

Subdivision 19 prohibits any elected official, officer, or employee at
any level of government (municipal, county, or State) may serve as an
IDA Board member, trustee, employee, or independent contractor of the
IDA. Nor shall any elected official, government officer, or government
employee take a position - paid or unpaid - with any business or entity
doing business with the IDA, including applying for or receiving a tax
exemption or benefit determined or granted by the IDA. This shall apply
for the duration of their tenure and until three years after such
elected official, government officer, or government employee concludes
their government role. The same penalties of subdivision 4 of section
883 of the General Municipal Law - which is created by this bill - apply
to any violation of this subdivision

Section 3 amends paragraphs c and d of subdivision 1 of section 805-a of
the General Municipal Law and adds a new paragraph e with the following
provision:

Paragraph e provides that any municipal officer or employee shall be
prohibited from serving as an IDA Board member, trustee, employee, or
independent contractor, of the IDA to take a position - paid or unpaid
with any business or entity doing business with the IDA, including
applying for or receiving a tax exemption or any other benefit deter-
mined or granted by the IDA. This shall apply for the duration of their
tenure and until three years after such municipal officer or employee
concludes their role.

Section 4 sets forth the effective date which is immediately.

 
JUSTIFICATION:

As New York State Thomas DiNapoli has said, "An Industrial Development
Agency's (IDA) core mission is to economically benefit their communi-
ties, not the officials running them."

Unfortunately, too many IDA officials have abused their positions by
enriching themselves by have having secret financial dealings with the
businesses that they either sign contracts with, or grant tax exemptions
in their official duties with the IDA. As a result, the interest of the
communities and taxpayers these IDA officials are meant to serve are
compromised and communities and taxpayers are instead defrauded of
significant tax monies, sometimes totaling in the millions and even
billions of dollars. These hidden conflicts and self-dealing call into
question the integrity of the IDA process.

Recently, the former managing director of the Orange County IDA, the
former CEO of the IDA and a former county executive who sat on the IDA
board pleaded guilty to felonies of committing a prohibited conflict of
interest. The managing director had set up a consulting firm which
received a contract with the IDA, the former CEO was on the payroll of
that consulting firm even as she signed contracts on behalf of the IDA
with that firm. And the former county executive was also on that firm's
payroll while he voted on the contracts that the IDA had with the
consulting firm.

The District Attorney said that the IDA overpaid the consulting firm and
required both the former managing director and his partner to reimburse
the IDA One Million Dollars. The former CEO and county executive must
pay the IDA $175,000 and $90,000, respectively, in restitution repre-
senting.the payments made by the consulting firm to them. No jail time
Was received - only probation. Upon restitution and future cooperation,
the felony plea of the former county executive will be reduced to a
misdemeanor.

This bill eliminates opportunities for IDA fraud by prohibiting IDA
officials from being employed by any entity doing business with the IDA.
It also prohibits government officials at any level from either serving
on an IDA or taking employment with any of the entities doing business
with the IDA - either seeking tax benefits or receiving tax benefits.
These prohibitions shall stand until three years after the conclusion of
an individual's IDA or governmental role.

Violating these prohibitions will requite restitution. And since resti-
tution alone is not a penalty, this bill institutes a civil penalty
equal to ten times the amount to be restituted. A prohibition without a
penalty does not deter. The restitution and penalty are in addition to
any possible. criminal liability.

 
PRIOR LEGISLATIVE HISTORY:

None. New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S7445 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7445
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             October 18, 2021
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the general municipal law and the public  officers  law,
   in  relation  to  prohibiting  individuals  in  certain positions from
   taking any position with a business or entity doing business  with  an
   industrial development authority
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 883 of the general municipal  law,  as  amended  by
 section  7  of  part  J of chapter 59 of the laws of 2013, is amended to
 read as follows:
   § 883. Conflicts of interest. 1. All members, officers, and  employees
 of  an  agency  or  industrial development authority established by this
 chapter or created by the public authorities law shall be subject to the
 provisions of article eighteen of this chapter.
   2. NO MEMBER, OFFICER, TRUSTEE, EMPLOYEE  OR  INDEPENDENT  CONTRACTOR,
 INCLUDING  ANY  ATTORNEY,  OF AN INDUSTRIAL DEVELOPMENT AUTHORITY ESTAB-
 LISHED BY THIS CHAPTER SHALL TAKE ANY POSITION, WHETHER PAID OR  UNPAID,
 WITH ANY BUSINESS OR ENTITY DOING BUSINESS WITH SUCH INDUSTRIAL DEVELOP-
 MENT  AUTHORITY OR ANY BUSINESS OR ENTITY APPLYING FOR ANY TAX EXEMPTION
 OR BENEFIT DETERMINED OR GRANTED BY SUCH INDUSTRIAL DEVELOPMENT AUTHORI-
 TY OR RECEIVING ANY TAX EXEMPTION OR BENEFIT DETERMINED  OR  GRANTED  BY
 SUCH  INDUSTRIAL DEVELOPMENT AUTHORITY WHILE SUCH MEMBER, OFFICER, TRUS-
 TEE, EMPLOYEE OR INDEPENDENT CONTRACTOR OF SUCH  INDUSTRIAL  DEVELOPMENT
 AUTHORITY IS EMPLOYED OR UNDER CONTRACT WITH SUCH INDUSTRIAL DEVELOPMENT
 AUTHORITY OR WITHIN A PERIOD OF THREE YEARS AFTER THE TERMINATION OF THE
 MEMBER,  OFFICER, TRUSTEE, EMPLOYEE OR INDEPENDENT CONTRACTOR'S POSITION
 WITH SUCH INDUSTRIAL DEVELOPMENT AUTHORITY.
   3. NO STATEWIDE, COUNTY OR LOCAL ELECTED OFFICIAL OR STATE, COUNTY  OR
 MUNICIPAL OFFICER OR EMPLOYEE SHALL SERVE AS A MEMBER, OFFICER, TRUSTEE,
 EMPLOYEE OR INDEPENDENT CONTRACTOR OF AN INDUSTRIAL DEVELOPMENT AUTHORI-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11895-02-1

 S. 7445                             2
 
 TY ESTABLISHED BY THIS CHAPTER NOR SHALL ANY ELECTED OFFICIAL OR MUNICI-
 PAL, COUNTY OR STATE OFFICER OR EMPLOYEE TAKE ANY POSITION, WHETHER PAID
 OR UNPAID, WITH ANY BUSINESS OR ENTITY DOING BUSINESS WITH AN INDUSTRIAL
 DEVELOPMENT  AUTHORITY  OR  ANY  BUSINESS OR ENTITY APPLYING FOR ANY TAX
 EXEMPTION OR BENEFIT DETERMINED OR GRANTED BY AN INDUSTRIAL  DEVELOPMENT
 AUTHORITY OR RECEIVING ANY TAX EXEMPTION OR BENEFIT DETERMINED OR GRANT-
 ED BY AN INDUSTRIAL DEVELOPMENT AUTHORITY WHILE SUCH ELECTED OFFICIAL OR
 MUNICIPAL, COUNTY OR STATE OFFICER OR EMPLOYEE IS SERVING OR EMPLOYED OR
 WITHIN  A  PERIOD  OF  THREE YEARS AFTER SUCH TERMINATION OF THE ELECTED
 OFFICIAL OR MUNICIPAL, COUNTY OR STATE OFFICER OR EMPLOYEE OR  INDEPEND-
 ENT  CONTRACTOR'S  POSITION  AS  AN ELECTED OFFICIAL OR STATE, COUNTY OR
 MUNICIPAL OFFICER OR EMPLOYEE.
   4. ANY PERSON WHO VIOLATES THE PROVISIONS OF SUBDIVISION TWO OR  THREE
 OF  THIS  SECTION AND IS COMPENSATED OR RECEIVES ANY BENEFIT DUE TO SUCH
 VIOLATION SHALL PAY RESTITUTION TO THE INDUSTRIAL DEVELOPMENT  AUTHORITY
 FOR  WHICH  SUCH  PERSON  HELD A POSITION EQUAL TO THE AMOUNT OF COMPEN-
 SATION OR BENEFIT RECEIVED BY SUCH  PERSON.  IN  ADDITION,  SUCH  PERSON
 SHALL PAY A CIVIL PENALTY TO SUCH INDUSTRIAL DEVELOPMENT AUTHORITY EQUAL
 TO  TEN TIMES THE AMOUNT TO BE RESTITUTED TO SUCH INDUSTRIAL DEVELOPMENT
 AUTHORITY. SUCH RESTITUTION AND PENALTY SHALL  BE  IN  ADDITION  TO  ANY
 CRIMINAL LIABILITY OR PENALTY.
   §  2. Section 73 of the public officers law is amended by adding a new
 subdivision 19 to read as follows:
   19. NO PERSON SERVING AS A STATEWIDE ELECTED OFFICIAL OR STATE OFFICER
 OR EMPLOYEE SHALL SERVE AS A MEMBER, OFFICER, TRUSTEE, EMPLOYEE OR INDE-
 PENDENT CONTRACTOR OF AN INDUSTRIAL DEVELOPMENT AUTHORITY ESTABLISHED BY
 THE GENERAL MUNICIPAL LAW NOR SHALL ANY STATEWIDE  ELECTED  OFFICIAL  OR
 STATE  OFFICER  OR  EMPLOYEE  TAKE ANY POSITION, WHETHER PAID OR UNPAID,
 WITH ANY BUSINESS OR ENTITY DOING BUSINESS WITH AN  INDUSTRIAL  DEVELOP-
 MENT  AUTHORITY OR ANY BUSINESS OR ENTITY APPLYING FOR ANY TAX EXEMPTION
 OR BENEFIT DETERMINED OR GRANTED BY AN INDUSTRIAL DEVELOPMENT  AUTHORITY
 OR  RECEIVING  ANY  TAX EXEMPTION OR BENEFIT DETERMINED OR GRANTED BY AN
 INDUSTRIAL DEVELOPMENT AUTHORITY WHILE SUCH STATEWIDE  ELECTED  OFFICIAL
 OR  STATE  OFFICER OR EMPLOYEE IS SERVING OR EMPLOYED OR WITHIN A PERIOD
 OF THREE YEARS AFTER THE TERMINATION OF SUCH SERVICE OR EMPLOYMENT.  ANY
 PERSON  WHO VIOLATES THE PROVISIONS OF THIS SUBDIVISION SHALL BE SUBJECT
 TO THE PENALTIES LAID OUT IN SUBDIVISION FOUR OF SECTION  EIGHT  HUNDRED
 EIGHTY-THREE OF THE GENERAL MUNICIPAL LAW.
   §  3.  Paragraphs  c  and  d  of subdivision 1 of section 805-a of the
 general municipal law, as amended by chapter 813 of the  laws  of  1987,
 are amended and a new paragraph e is added to read as follows:
   c.  receive,  or  enter  into  any  agreement, express or implied, for
 compensation for services to be  rendered  in  relation  to  any  matter
 before any municipal agency of which he is an officer, member or employ-
 ee or of any municipal agency over which he has jurisdiction or to which
 he has the power to appoint any member, officer or employee; [or]
   d.  receive,  or  enter  into  any  agreement, express or implied, for
 compensation for services to be  rendered  in  relation  to  any  matter
 before any agency of his municipality, whereby his compensation is to be
 dependent  or  contingent upon any action by such agency with respect to
 such matter, provided that this paragraph shall not prohibit the  fixing
 at  any  time  of  fees  based upon the reasonable value of the services
 rendered[.]; OR
   E. SERVE AS  A  MEMBER,  OFFICER,  TRUSTEE,  EMPLOYEE  OR  INDEPENDENT
 CONTRACTOR  OF  AN  INDUSTRIAL DEVELOPMENT AUTHORITY ESTABLISHED BY THIS
 CHAPTER NOR TAKE ANY POSITION, WHETHER PAID OR UNPAID, WITH ANY BUSINESS
 S. 7445                             3

 OR ENTITY DOING BUSINESS WITH AN INDUSTRIAL DEVELOPMENT AUTHORITY OR ANY
 BUSINESS OR ENTITY APPLYING FOR ANY TAX EXEMPTION OR BENEFIT  DETERMINED
 OR  GRANTED  BY AN INDUSTRIAL DEVELOPMENT AUTHORITY OR RECEIVING ANY TAX
 EXEMPTION  OR BENEFIT DETERMINED OR GRANTED BY AN INDUSTRIAL DEVELOPMENT
 AUTHORITY WHILE  SUCH  MUNICIPAL  OFFICER  OR  EMPLOYEE  IS  SERVING  OR
 EMPLOYED OR WITHIN A PERIOD OF THREE YEARS AFTER SUCH TERMINATION OF THE
 MUNICIPAL OFFICER OR EMPLOYEE'S POSITION.
   § 4. This act shall take effect immediately.

2021-S7445A - Details

Law Section:: General Municipal Law
Laws Affected:: Amd §883, Gen Muni L
Versions Introduced in 2023-2024 Legislative Session:: S520

2021-S7445A - Summary

Prohibits individuals in certain positions from taking any position with a business or entity doing business with an agency or industrial development authority.

2021-S7445A - Sponsor Memo

                                 
BILL NUMBER: S7445A          Revised 5/10/2022

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the general municipal law, in relation to prohibiting
individuals in certain positions from taking any position with a busi-
ness or entity doing business with an industrial development authority

 
PURPOSE OR GENERAL IDEA OF BILL:

To prohibit individuals in certain positions from taking any position
with a business or entity doing business with an industrial development
agency and to provide penalties for violations.

 
SUMMARY OF PROVISIONS:

Section 1 amends Section 883 of the General Municipal Law with the
following provisions;

New subdivision 2 of Section 883 prohibits any Industrial Development
Agency or Authority (IDA) Board member, officer, employee, or independ-

ent contractor to take a position, paid or unpaid, with any business or
entity which is applying for or receiving financial assistance or any
other benefit determined or granted by the IDA for the duration of their
tenure and within two years after the termination of such employment or
rendering of services.

New subdivision 3 states that when any person violates subdivision 2 and
is compensated or receives a benefit as a result of their prohibited
actions, that person shall pay a civil penalty to the IDA equal to five
times the amount of compensation or benefit received.  These penalties
shall be in addition to any criminal liability.

Section 2 sets forth the effective date which is immediately.

 
JUSTIFICATION:

As New York State Comptroller Thomas DiNapoli has said, An Industrie:
Development Agency's (IDA) core mission is to economically benefit their
communities, not the officials running them."  Unfortunately, too many
IDA officials have abused their positions by enriching themselves
through secret financial dealings with the very businesses that they
either sign contracts with or grant tax exemptions to in the course of
their official IDA duties. As a result, these IDA officials compromise
the interests of the communities and taxpayers they are meant to serve.
Instead, these communities and taxpayers are defrauded of significant
tax monies, sometimes totaling in the millions and even billions of
dollars.

These hidden conflicts and self-dealings call into question the integri-
ty of the IDA systems.

Recently, the former managing director, the former CEO, and a former
county executive who sat on the Orange County IDA board pleaded guilty
to felonies of committing a prohibited conflict of interest.  It was
shown that the managing director had set up a consulting firm which
contracted to do business with the IDA, and that the former CEO and
former county executive were on the firm's payroll even as they respec-
tively signed and voted upon contracts their employer had presented to
the IDA.

After the trio were indicted, the District Attorney required them to
return the more than $1.2 million dollars they had obtained through
their self-dealing scheme. However, no jail time was received-only
probation. Upon restitution and future cooperation, eho felony plea of
the former county executive will be reduced to just a misdemeanor.

This bill eliminates opportunities for IDA fraud by prohibiting IDA
officials, employees and independent contractors of the IDA from being
employed or taking any position, paid or unpaid, with any entity doing
business with the IDA-either applying for or receiving IDA benefits
while employed or rendering services to the IDA and for two years after
the conclusion of an individual's IDA employment or rendering of
services to the IDA.

A prohibition without a penalty does not adequately deter similar
crimes. That is why this bill mandates a strict penalty. Any person
violating these restrictions will be subject to a civil penalty of five
times the compensation or benefit received by the person. This civil
penalty is in addition to any criminal liability.

 
PRIOR LEGISLATIVE HISTORY:

None. New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S7445A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7445--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             October 18, 2021
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules  --  recommitted  to
   the  Committee  on  Local Government in accordance with Senate Rule 6,
   sec. 8 -- committee discharged, bill  amended,  ordered  reprinted  as
   amended and recommitted to said committee

 AN  ACT  to  amend the general municipal law, in relation to prohibiting
   individuals in certain positions from taking any position with a busi-
   ness or entity doing business with an industrial development authority
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  883  of the general municipal law, as amended by
 section 7 of part J of chapter 59 of the laws of  2013,  is  amended  to
 read as follows:
   §  883. Conflicts of interest. 1. All members, officers, and employees
 of an agency or industrial development  authority  established  by  this
 chapter or created by the public authorities law shall be subject to the
 provisions of article eighteen of this chapter.
   2. NO MEMBER, OFFICER, EMPLOYEE OR INDEPENDENT CONTRACTOR OF ANY AGEN-
 CY  OR  INDUSTRIAL  DEVELOPMENT AUTHORITY ESTABLISHED BY THIS CHAPTER OR
 THE PUBLIC AUTHORITIES LAW SHALL TAKE  ANY  POSITION,  WHETHER  PAID  OR
 UNPAID, INCLUDING BUT NOT LIMITED TO AN INDEPENDENT CONTRACTOR, WITH ANY
 BUSINESS  OR  ENTITY APPLYING FOR OR RECEIVING FINANCIAL ASSISTANCE FROM
 SUCH AGENCY OR INDUSTRIAL DEVELOPMENT AUTHORITY  WHILE  EMPLOYED  BY  OR
 RENDERING SERVICES TO SUCH AGENCY OR INDUSTRIAL DEVELOPMENT AUTHORITY OR
 WITHIN  TWO  YEARS  AFTER TERMINATION OF SUCH EMPLOYMENT OR RENDERING OF
 SERVICES.
   3. ANY PERSON WHO VIOLATES THE PROVISIONS OF SUBDIVISION TWO  OF  THIS
 SECTION AND IS COMPENSATED OR RECEIVES ANY BENEFIT DUE TO SUCH VIOLATION
 SHALL  PAY  A  CIVIL  PENALTY  TO  THE  AGENCY OR INDUSTRIAL DEVELOPMENT
 AUTHORITY IN AN AMOUNT EQUAL TO FIVE TIMES THE COMPENSATION  OR  BENEFIT
 RECEIVED  BY  SUCH  PERSON.  THESE PENALTIES SHALL BE IN ADDITION TO ANY
 CRIMINAL LIABILITY.
   § 2. This act shall take effect immediately.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD11895-04-2

2021-S7445B (ACTIVE) - Details

Law Section:: General Municipal Law
Laws Affected:: Amd §883, Gen Muni L
Versions Introduced in 2023-2024 Legislative Session:: S520

2021-S7445B (ACTIVE) - Summary

Prohibits individuals in certain positions from taking any position with a business or entity doing business with an agency or industrial development authority.

2021-S7445B (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7445B

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the general municipal law, in relation to prohibiting
individuals in certain positions from taking any position with a busi-
ness or entity doing business with an industrial development authority

 
PURPOSE OR GENERAL IDEA OF BILL:

To prohibit individuals in certain positions from taking any position
with a business or entity doing business with an industrial developme,
agency and to provide penalties for violations.

 
SUMMARY OF PROVISIONS:

Section 1 amends Section 883 of the General Municipal Law with the
following provisions:

New subdivision 2 of Section 883 prohibits any Industrial Development
Agency or Authority (IDA) Board member, officer, employee, or independ-

ent contractor to take a position, paid or unpaid, with any business or
entity which is applying for or receiving financial assistance or any
other benefit determined or granted by the IDA for the duration of their
tenure and within two years after the termination of such employment or
rendering of services.

New subdivision 3 states that when any person knowingly and willfully
violates subdivision 2 and is compensated or receives a benefit as a
result of their prohibited actions, that person shall pay a civil penal-
ty to the 1DA equal to five times the amount of compensation or benefit
received. These penalties shall be in addition to any criminal liabil-
ity.

Section 2 sets forth the effective date which is immediately.

 
JUSTIFICATION:

As New York State Comptroller Thomas DiNapoli has said, "An Industrial
Development Agency's (IDA) core mission is to economically benefit their
communities, not the officials running them."

Unfortunately, toe many IDA officials have abused their positions by
enriching themselves through secret financial dealings with the very
businesses that they either sign contracts with or grant tax exemptions
to in the course of their official IDA duties. As a result, these IDA
officials compromise the interests of the communities and taxpayers they
are meant to serve. Instead, these communities and taxpayers are
defrauded of significant tax monies, sometimes totaling in the millions
and even billions of dollars. These hidden conflicts and self-dealings
call into question the integrity of the IDA system.

Recently, the former managing director, the former CEO, and a former
county executive who sat on the Orange County IDA board pleaded guilty
to felonies of committing a prohibited conflict. of interest.  It was
shown that the managing director had set up'a consulting firm which
contracted to do business with the IDA, and that the former CEO and
former county executive were on the firm's payroll even as they respec-
tively signed and voted upon contracts their employer had presented to
the IDA.

After the trio were indicted, the District Attorney required them to
return the more than $1.2 million dollars they had obtained through
their self-dealing scheme. However, no jail time was received-only
probation. Upon restitution and future cooperation, the felony plea of
the former county executive will be reduced to just a misdemeanor.

This bill eliminates opportunities for IDA fraud by prohibiting IDA
officials, employees and independent cbntractors of the IDA from being
employed or taking any position, paid or unpaid, with any entity doing
business with the IDA-either applying for or receiving IDA benefits-whi-
le employed or rendering services to the IDA and for two years after the
conclusion of an individual's IDA employment or rendering of services to
the IDA.

A prohibition without a penalty does not adequately deter similar
crimes. That is why this bill mandates a strict penalty. Any person
violating these restrictions will be subject to a civil penalty of five
times the compensation or benefit received by the person.

 
PRIOR LEGISLATIVE HISTORY:

None. New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S7445B (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7445--B
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             October 18, 2021
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules  --  recommitted  to
   the  Committee  on  Local Government in accordance with Senate Rule 6,
   sec. 8 -- committee discharged, bill  amended,  ordered  reprinted  as
   amended  and  recommitted  to  said committee -- committee discharged,
   bill amended, ordered reprinted as amended  and  recommitted  to  said
   committee
 
 AN  ACT  to  amend the general municipal law, in relation to prohibiting
   individuals in certain positions from taking any position with a busi-
   ness or entity doing business with an industrial development authority
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  883  of the general municipal law, as amended by
 section 7 of part J of chapter 59 of the laws of  2013,  is  amended  to
 read as follows:
   §  883. Conflicts of interest. 1. All members, officers, and employees
 of an agency or industrial development  authority  established  by  this
 chapter or created by the public authorities law shall be subject to the
 provisions of article eighteen of this chapter.
   2. NO MEMBER, OFFICER, EMPLOYEE OR INDEPENDENT CONTRACTOR OF ANY AGEN-
 CY  OR  INDUSTRIAL  DEVELOPMENT AUTHORITY ESTABLISHED BY THIS CHAPTER OR
 THE PUBLIC AUTHORITIES LAW SHALL TAKE  ANY  POSITION,  WHETHER  PAID  OR
 UNPAID, INCLUDING BUT NOT LIMITED TO AN INDEPENDENT CONTRACTOR, WITH ANY
 BUSINESS  OR  ENTITY APPLYING FOR OR RECEIVING FINANCIAL ASSISTANCE FROM
 SUCH AGENCY OR INDUSTRIAL DEVELOPMENT AUTHORITY  WHILE  EMPLOYED  BY  OR
 RENDERING SERVICES TO SUCH AGENCY OR INDUSTRIAL DEVELOPMENT AUTHORITY OR
 WITHIN  TWO  YEARS  AFTER TERMINATION OF SUCH EMPLOYMENT OR RENDERING OF
 SERVICES.
   3. ANY PERSON WHO KNOWINGLY AND WILLFULLY VIOLATES THE  PROVISIONS  OF
 SUBDIVISION TWO OF THIS SECTION AND IS COMPENSATED OR RECEIVES ANY BENE-
 FIT  DUE  TO  SUCH  VIOLATION SHALL PAY A CIVIL PENALTY TO THE AGENCY OR
 INDUSTRIAL DEVELOPMENT AUTHORITY IN AN AMOUNT EQUAL TO  FIVE  TIMES  THE
 COMPENSATION OR BENEFIT RECEIVED BY SUCH PERSON.
   § 2. This act shall take effect immediately.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11895-06-2

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Senate Bill S7445

Share this bill

Sponsored By

Leroy Comrie

Archive: Last Bill Status - Passed Senate & Assembly

Bill Amendments

2021-S7445 - Details

2021-S7445 - Summary

2021-S7445 - Sponsor Memo

2021-S7445 - Bill Text download pdf

2021-S7445A - Details

2021-S7445A - Summary

2021-S7445A - Sponsor Memo

2021-S7445A - Bill Text download pdf

2021-S7445B (ACTIVE) - Details

2021-S7445B (ACTIVE) - Summary

2021-S7445B (ACTIVE) - Sponsor Memo

2021-S7445B (ACTIVE) - Bill Text download pdf

Comments