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History
- Referred to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the public authorities law, the general municipal law and the racing, pari-mutuel wagering and breeding law, in relation to points of clarification; to amend the public authorities law, in relation to prohibiting the formation of a subsidiary of a public authority without prior permission of the legislature and repealing certain provisions of the public authorities law and the public authorities accountability act of 2005 relating thereto
Purpose or general idea of bill
The bill would strengthen the Public Authorities Reform Act of 2005 by creating an independent authority budget office, prohibiting the creation of subsidiary authorities without legislative approval, making changes to the authority board1s governing process, creating a fiduciary duty, enabling the comptroller to approve authority contracts, strengthening the rules on the disposition of public authority property and creating whistleblower protections.
Summary of specific provisions and justification
In 2005, New York State enact major reforms of public authorities. The Assembly and Senate Corporations, Authorities and Commissions Committees, continue to find ways to strengthen the 2005 Act, knowing that it was only a first step. Additional reforms and fixes are necessary to make the system more accountable and transparent.
Read the full memo (835 words)
Literally billions of dollars are expended each year by the hundreds upon hundreds of authorities throughout the State. Ongoing legislative hearings into events at the Metropolitan Transportation Authority, the Thruway Authority and the Canal corporation, among other public benefit corporations have shown the need for significant improvements in transparency and responsiveness.
The major areas of reform included in the 2007 Act are:
1. THE CREATION OF AN INDEPENDENT BUDGET OFFICE The Reform Act will create an independent Authority Budget Office (ABO) with the staff and budget to financially review public authorities. The ABO will be headed by a Director who will be appointed by the committee of the Attorney General, Comptroller, Governor, Speaker of the Assembly and the Temporary President of the Senate. The office will be independent office. The Director will serve a 5 year term, be able to appoint a staff and shall only be removed for cause. The ABO will collect, distribute and assess information about the authorities' budgets for the coming year and it would authorize the ABO to make reports and provide information to the public and to elected officials.
2. AMENDING THE 2005 LAW TO TOUGHEN RULES GOVERNING THE SALE OF PROPERTY BY PUBLIC AUTHORITIES The 2005 Reform Act will be amended to close loopholes regarding the disposition of authority property.
3. AMENDING THE 2005 LAW TO STRENGTHEN THE AUTHORITY BOARD REFORMS The Reform Act will add to and strengthen provisions governing public authorities' board of directors. The Reform Act will strengthen provisions of the 2005 law with regard to Board accountability and reform. This section creates a fiduciary duty that is enforceable by the Authority Budget Office Director. The Act will require authority boards execute an acknowledgment confirming that they understand their independence as a member and their fiduciary duties to the organization. The Act will further require each member of a public authority's audit committee to possess the necessary skills to carry out the duties and functions of the committee, to be familiar with corporate financial and accounting practices, and be or become financially literate. Furthermore, this section will require each member of a public authority's governance committee to possess the necessary skills to carry out the duties and functions of the committee, and expand the responsibilities of those members to include the examination of ethical and conflict of interest issues; performing board self-evaluations; investigate term limits, reappointments and board responsibilities; develop by-laws whi ch include rules and procedures for conducting board business; and make recommendations for new directors.
4. PROVIDING THE COMPTROLLER THE POWER TO APPROVE PUBLIC AUTHORITY CONTRACTS The Reform Act will empower the Comptroller to review contracts in a proactive manner. The Reform Act will give the Comptroller the power to review public authority contracts.
5. CREATING STRICT NEW RULES TO CONTROL PUBLIC AUTHORITY DEBT This legislation will begin the process of controlling public authority debt. Boards of directors will submit to the ABO limitations on public authority debt and the ABO will submit to the Legislature and Governor recommendations on reforming debt issuance by public authorities.
6. RULES CREATING SUBSIDIARY PUBLIC CORPORATIONS AND AUTHORITIES This legislation will ensure that public authorities, including subsidiaries are subject to Legislative and Executive approval. The Reform Act will subject all public authority subsidiaries and affiliates to the provisions of the Public Authorities Law and prohibit the creation of new public authority subsidiaries or affiliates without specific legislative authorization.
7. WHISTLE BLOWER PROTECTIONS FOR EMPLOYEES OF PUBLIC AUTHORITIES The legislation includes a "Whistleblower Access and Assistance Program" to protect those individuals who report wrongdoing.
Prior legislative history
2007: Passed Senate. 2008: Senate Rules Committee
Fiscal implications for state and local governments
Undetermined at this time.
Effective date
This act shall take effect on the sixtieth day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.