NY State Senate Bill 2021-S9148

Senate Bill S9148

2021-2022 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

Archive: Last 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 11, 2022	referred to corporations, authorities and commissions

2021-S9148 (ACTIVE) - Details

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 2023-2024 Legislative Session:: S3437

2021-S9148 (ACTIVE) - Summary

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

2021-S9148 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9148

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:

New bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S9148 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9148
 
                             I N  S E N A T E
 
                               May 11, 2022
                                ___________
 
 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 and subdivision 8 as amended  by  chapter
 61  of  the laws of 1975, and subdivision 7 as amended by chapter 655 of
 the laws of 1973, 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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD15800-01-2
 S. 9148                             2
 
 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
 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,
 S. 9148                             3
 
 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
 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.
 S. 9148                             4
 
   (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  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  incon-
 sistent  provision  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 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 [chairman] 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:
   § 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
 S. 9148                             5
 
 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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