What's happening
This bill allows county comptrollers to audit industrial development agencies and not-for-profit corporations affiliated with local governments.
Why it matters
Increases local government oversight. By explicitly allowing county comptrollers to audit industrial development agencies (IDAs) and affiliated not-for-profit corporations, the bill empowers counties to scrutinize economic development projects and public funds that previously may not have been closely monitored at the local level.
Addresses potential gaps in financial accountability. Not-for-profit entities and IDAs often manage significant public resources and assets but can sometimes operate with less transparency than other government bodies. The bill aims to reduce risks of mismanagement or inefficiency by ensuring these organizations are subject to regular, independent review.
Provides a mechanism for counties without comptrollers. The bill ensures that even in counties lacking a formal comptroller, a designated official (like the budget or finance director) will be responsible for conducting these audits, promoting uniform oversight practices across the state.
Could impact how public-private partnerships operate. By making audits more likely and potentially more rigorous, the bill may influence how IDAs and government-affiliated non-profits structure their operations, increasing the emphasis on compliance, transparency, and justifying the use of public resources.
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Who cares
Headline styles
Let Counties Audit Local Agencies
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to rules
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8701
IN SENATE
July 8, 2020
Introduced by Sen. MAYER -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the public authorities law, in relation to allowing for the examination of industrial development agencies and not-for-profit corporations by county comptrollers
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 2803-a to read as follows:
§ 2803-a. Examination of industrial development agencies and not-forprofit corporations by county comptrollers. 1. Examination of industrial development agency projects and actions by county comptrollers. (a) A county comptroller may conduct an audit of a project and/or action of an industrial development agency located within the county.
(b) In counties where there is no county comptroller, the chief elected official of the county shall designate the budget director or finance director to undertake such audits.
(c) For purposes of this section, industrial development agencies include such public authorities defined in paragraph (c) of subdivision two of section two of this chapter.
2. Examination of not-for-profit corporations by county comptrollers. (a) A county comptroller may conduct an audit of a not-for-profit corporation affiliated with, sponsored by, or created by a county, city, town or village government, located within the county.
(b) In counties where there is no county comptroller, the chief elected official of the county shall designate the budget director or finance director to undertake such audits.
(c) For purposes of this section, not-for-profit corporations include such public authorities defined in paragraph (b) of subdivision two of section two of this chapter.
§ 2. This act shall take effect on the ninetieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15676-03-0
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 allowing for the examination of industrial development agencies and not-for-profit corporations by county comptrollers
Purpose
To allow for independent examination and audit of industrial development agencies and not-for-profit corporations on the local county level.
Summary of provisions
Section 1 adds a new section to the public authorities law permitting the county comptroller or local equivalent to examine and audit the projects and actions of industrial development agencies operating within a county as well as local non-for-profit corporations.
Section 2 sets the effective date.
Justification
New York State law authorizes industrial development agencies to grant incentives, including tax abatements and PILOTs, to businesses and projects to promote job growth and the vitality of our local economies. The actions they take, including granting PILOTs, tax abatements, and terms of the incentives, have substantial impacts on community members, workers, and taxpayers. Yet, many of these actions are veiled from those that are affected.
This bill would add an additional level of accountability by allowing for the local audit and examination of IDA projects and actions. Addi- tionally, this bill enables the same examination of local not-for-profit corporations. These measures allow for enhanced public confidence in institutions designed to help people on a local level by allowing for concerns of the public to be handled brought to the attention of a local entity that is more attune with local concerns.
Legislative history
New bill
Fiscal implications
None
Effective date
This act shall take effect on the ninetieth day after it shall become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.