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S7444Senate2015-2016 Session

Authorizes the comptroller to audit local development corporations

Sponsor David CarlucciSD-38Affects Economy
Status
In Senate Committee
Corporations, Authorities And Commissions
Impact
Pending
Passage
Pending

Bill progress

Step 2 of 7

In committee · Corporations, Authorities And Commissions

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Who cares

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Sponsors

Primary sponsor
David Carlucci

Senator · Senate District 38

Chair, Social Services

No co-sponsors yet.

History

  1. 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 not-for-profit corporation law, in relation to authorizing the comptroller to audit local development corporations

Purpose

To provide explicit authority for the Office of the State Comptroller to audit Local Development Corporations.

Summary of provisions

Section 1 amends section 1411 of the not-for-profit corporation law by relettering paragraph (j) and creating a new paragraph (i) to provide read as the comptroller has the authority to audit any local development corporation incorporated or reincorporated pursuant to this section.

Section 2 is the effective date.

Justification

In April of 2016, U.S. Attorney Preet Bharara brought what is believed to be the first case of municipal bond-related criminal security fraud against elected officials in the Town of Ramapo. These charges stemmed from the sale of over $150 million in municipal bonds based off of fabricated financials of the Ramapo Local Development Corporation and the town.

This case if just one example of the need for greater transparency and accountability in the use of Local Development Corporations. By enacting legislation that explicitly provides the authority for the Comptroller to audit Local Development Corporations we are taking step in providing that critical transparency and accountability needed to restore the public's trust.

Legislative history

New Bill.

Fiscal implications

None to the state.

Effective date

This act shall take effect immediately.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.