What's happening
This bill authorizes the New York Authorities Budget Office to suspend local authority board members or executive staff for failing to submit required reports.
Why it matters
Increases accountability for local public authorities. by giving the Authorities Budget Office (ABO) the direct power to temporarily suspend board members or executive staff who fail to file required reports for over three years, addressing chronic non-compliance that can undermine public trust.
Emphasizes due process and transparency. by requiring formal notice, an opportunity to respond, and a public process (including comment periods) for both the imposition and potential reversal of suspensions, which helps protect individuals from arbitrary enforcement and keeps the public informed.
Limits the power of non-compliant boards during suspension. by specifically restricting suspended boards from making binding financial or contractual decisions, reducing the risk of unaccountable or irresponsible actions while compliance issues are unresolved.
Empowers appointing authorities and the public. to have a say in reinstatement decisions, requiring public meetings and written justification, which democratizes oversight and helps ensure that reinstatement is justified and transparent.
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Who cares
Headline styles
Suspend Local Board Members
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 14
3 Co-sponsors
History
- Substituted by A220
- Advanced to third reading
- 2nd report cal.
- 1st report cal.105
- Referred to corporations, authorities and commissions
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Suspend Negligent Local Officials
Signed by Governor · Sponsor Amy Paulin
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1872
2019-2020 Regular Sessions
IN SENATE
January 17, 2019
Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions
AN ACT to amend the public authorities law, in relation to authorizing the authorities budget office to suspend local authority board members and executive staff
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The public authorities law is amended by adding a new section 6-a to read as follows:
§ 6-a. Power to suspend local authority board members and executive staff. 1. The authorities budget office shall have the authority, subject to subdivision two of this section, to suspend one or more members of a local authority board of directors, or the chief executive officer or equivalent position of a local authority for a period not to exceed ninety days when such individual or individuals knowingly fails or neglects to submit any report required by section twenty-eight hundred of this chapter within thirty-six months of its due date. The authorities budget office is authorized to terminate such a suspension if the board member or chief executive officer demonstrates that he or she has remedied their non-compliance. For the purposes of this section, the "suspension" of an individual shall mean the temporary removal of the rights, responsibilities, powers and duties of a person who is an appointed board member of a local authority or the individual who serves as chief executive officer through appointment or contract. Should the authorities budget office suspend the full board of directors or a majority of current board members the term "suspension" shall mean the board of directors is prohibited from taking actions, votes, or adopting resolutions, that bind the board to future agreements, contracts, financial commitments, indebtedness, or other actions, other than actions
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04270-01-9
S. 1872 2
necessary to resolve the noncompliance or satisfy existing legal or administrative obligations.
2. (a) Pursuant to policies and procedures developed by the authorities budget office and made available on its website, when the authorities budget office has reason to believe that one or more board members of a local authority has knowingly failed or neglected to submit any report required by section twenty-eight hundred of this chapter within thirty-six months of its due date, the authorities budget office shall provide at least thirty days' notice of its intent to initiate suspension proceedings to the chairperson of the local authority, to the individual or individuals responsible for appointing such board members, and to each such board member. If the authorities budget office has reason to believe that the chief executive officer of a local authority has knowingly failed or neglected to submit any report required by section twenty-eight hundred of this chapter within thirty-six months of its due date, the authorities budget office shall provide at least thirty days' notice of its intent to initiate suspension proceedings to the chairperson of the local authority and to the chief executive officer. Such notice shall include, but shall not be limited to (i) the date and a brief description of the facts and nature of each non-compliance for which such suspension is proposed; (ii) the number of days that the authorities budget office proposes to suspend such board member or chief executive officer; (iii) the option to submit a formal response to the authorities budget office which demonstrates why such board member or chief executive officer should not be suspended; and (iv) if applicable, a period of time in which such local authority or board member or chief executive officer may remedy the non-compliance.
(b) If, after the expiration of the deadline set forth in the notice of intent pursuant to subparagraph (iv) of paragraph (a) of this subdivision, the board member or members or chief executive officer, whichever is applicable, has not responded to the notice or has not remedied the non-compliance to the satisfaction of the authorities budget office, the authorities budget office shall issue to the non-compliant board member or members or chief executive officer a notice of suspension which shall include: (i) the number of days of suspension; and (ii) the date that such suspension shall commence, which date shall be at least one hundred eighty days from the date of the issuance of the notice of suspension.
3. (a) Whenever the authorities budget office has suspended one or more board members of a local authority, the individual or individuals who appointed those board members may act to reinstate a suspended board member. If the appointing authority is a legislative body or a member of the legislative body, any action to reinstate a suspended board member shall occur in a public meeting of such body and following an opportunity for the public to comment. Such action shall be deemed valid upon passage of a written resolution of reinstatement by a majority and recorded vote of the legislative body. Such resolution shall describe the facts and circumstances by which the legislative body has reached this determination. If the appointing authority is the chief executive official of the municipality for whose benefit the local authority was created, any action to reinstate a suspended board member shall be through an official act of the chief executive official. Such act shall be recorded in writing and shall describe the facts and circumstances by which the chief executive official reached this determination.
(b) Whenever the authorities budget office has suspended the chief executive officer of a local authority, the chairperson of such local
S. 1872 3
authority may initiate action to reinstate the suspended chief executive officer. Any action to reinstate a suspended chief executive officer shall occur in a public meeting of the board of directors and following an opportunity for the public to comment. Such action shall be deemed valid upon passage of a written resolution of reinstatement by a majority and recorded vote of the current board of directors. Such resolution shall describe the facts and circumstances by which the board of directors reached this determination.
(c) For the purposes of this section, "reinstatement" shall mean the restoration of the rights, responsibilities, powers and duties of a board member or chief executive officer of a local authority.
§ 2. This act shall take effect on the ninetieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the public authorities law, in relation to authorizing the authorities budget office to suspend local authority board members and executive staff
Purpose or general idea of bill
To authorize the Authorities Budget Office to suspend local authority board members and chief executive officers that are substantially delin- quent in filing required reports.
Summary of specific provisions
Section one amends the public authorities law to allow the Authorities Budget Office (ABO) to suspend local authority board members or chief executive officers that have failed to file the reports required under the public authorities law for more than three years after the due date.
This section also establishes the procedures the ABO must follow in order to issue a suspension, which include notification and an explana- tion of the failure to file a required report. The notification proce- dures would include:
*the issuance of a notice of intent to suspend, informing the board member(s) or CEO that the local authority has 30 days to remedy the non-compliance; and
*in the event the board member(s) or CEO fails to respond to the notice, the issuance of a notice of suspension, which shall give the local authority 180 days to comply prior to suspension.
Finally, this section authorizes the appointing authority, typically a local municipal official or legislative body, to reinstate a suspended board member. This section also authorizes the chairperson of a local authority to reinstate a suspended chief executive officer In both instances, the facts and circumstances by how this decision was reached would be available to the public.
Section two provides the effective date.
Justification
This bill would authorize the Authorities Budget Office (ABO) to suspend local authority board members and chief executive officers (CEOs) who have failed to file the reports that are annually required under the Public Authorities Law. Reports are due 90 days after the end of the authority's fiscal year. Currently, the ABO is only authorized to make recommendations and issue a public censure letter.
Each year the ABO publishes a report listing authorities that are delin- quent in these filings. Many of these authorities are only a few months overdue and the filings are made, if not on time at least soon after they are due. However, there are some authorities that have not filed for years, and these are the authorities that this bill captures. The current lack of strong enforcement measures has led some authorities to ignore this filing requirement knowing that they can do so with impuni- ty. By closing this gap in the ABO's enforcement powers, authority board members and CEOs can be held directly accountable for long term violations of filing requirements they are obligated to follow. This bill includes a public suspension process which would shine a light on authorities that are not otherwise providing information to which the public is entitled.
As of February 2018, 129 local authorities failed to file reports with the ABC required by the Public Authorities Law. This includes annual reports and audit reports which are important documents to assure the public that a local authority is fulfilling its mission and remains accountable to the public they serve.
Prior legislative history
A.9999-A of 2018, passed assembly. Same as S.7749 of 2018, referred to corporations, authorities and commissions. A.3614 of 2017, referred to corporations, authorities and commissions. A.7744-A of 2015 and 2016, referred to codes. Same as S.7878, committed to rules.
Fiscal implications
None.
Effective date
Effective on the ninetieth day after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.