What's happening
This bill authorizes the New York State Comptroller to audit any local development corporation incorporated under the not-for-profit corporation law.
Why it matters
Increased accountability. By allowing the State Comptroller to audit local development corporations, the bill aims to ensure these entities are using public funds and resources responsibly, reducing risks of misuse or mismanagement.
Greater transparency. Local development corporations often manage significant public assets and economic development projects; subjecting them to state audits can provide the public and policymakers with clearer insight into their operations.
Potential for improved public trust. State oversight could help address concerns about favoritism, inefficiency, or corruption that sometimes arise around local development efforts, thereby fostering greater public confidence in these organizations.
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Who cares
State comptroller’s office
The bill would expressly authorize the comptroller to audit local development corporations incorporated or reincorporated under section 1411 of the Not-for-Profit Corporation Law.
Local development corporations
Corporations covered by section 1411 would become subject to the comptroller’s audit authority.
Local development corporation boards and managers
The organizations they oversee would face potential audits by the comptroller.
Headline styles
Audit Local Development Corporations
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 38
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
506
2019-2020 Regular Sessions
IN SENATE (Prefiled)
January 9, 2019
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.
LBD06313-01-9
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 Re-lettering 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
2017-18: S1373 - CORPORATIONS 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.