What's happening
This bill authorizes the New York State Comptroller to audit any local development corporation incorporated or reincorporated under not-for-profit law.
Why it matters
Increases Oversight of Public Funds. By allowing the State Comptroller to audit local development corporations (LDCs), this bill introduces an additional layer of financial scrutiny over entities that often manage significant public assets or funds for economic development projects.
Potential for Greater Accountability. LDCs have sometimes been criticized for lack of transparency. This measure aims to hold them accountable, possibly reducing risks of misuse, waste, or mismanagement of taxpayer dollars.
May Affect Local Economic Development Projects. Increased audits could influence how LDCs operate, possibly leading to changes in their governance, record-keeping, or project selection to ensure they meet state oversight standards.
Sets a Precedent for State Authority. This bill clarifies and expands the Comptroller’s legal powers, potentially paving the way for broader state oversight of other quasi-governmental or nonprofit entities involved in public projects.
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Who cares
Headline styles
Let Comptroller Audit LDCs
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1373
2017-2018 Regular Sessions
IN SENATE
January 9, 2017
Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions
AN ACT to amend the not-for-profit corporation law, in relation to authorizing the comptroller to audit local development corporations
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (i) of section 1411 of the not-for-profit corporation law is relettered paragraph (j) and a new paragraph (i) is added to read as follows:
(i) Audit.
The comptroller has the authority to audit any local development corporation incorporated or reincorporated pursuant to this section.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02388-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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
2015-16: S7444 - corporations
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.