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Who cares
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Sponsors
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History
- 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.