Bill Text: NY S05445 | 2019-2020 | General Assembly | Introduced

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Bill Title: Relates to audits by the state comptroller of certain organizations directly or indirectly controlled by municipal corporations and certain other government entities.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2019-12-20 - SIGNED CHAP.710 [S05445 Detail]

Download: New_York-2019-S05445-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          5445
                               2019-2020 Regular Sessions
                    IN SENATE
                                       May 1, 2019
                                       ___________
        Introduced  by  Sen. SKOUFIS -- (at request of the State Comptroller) --
          read twice and ordered printed, and when printed to  be  committed  to
          the Committee on Local Government
        AN  ACT  to  amend  the  general municipal law, in relation to audits of
          governmentally controlled entities
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Section  34  of  the general municipal law, as amended by
     2  chapter 233 of the laws of 2006, is amended to read as follows:
     3    § 34. Powers and duties of examiners.  1.  The  comptroller  and  each
     4  examiner  of  municipal  affairs  shall  have  power to examine into the
     5  financial affairs of every such municipal corporation, industrial devel-
     6  opment agency, district, [fire company as defined in section two hundred
     7  four-a of this chapter,] agency [and], activity [and], any fire  company
     8  as  defined in section two hundred four-a of this chapter, and any other
     9  organization, except a statewide association  of  local  governments  or
    10  local  government  officials,  that  is controlled by one or more of any
    11  such municipal corporations, industrial development agencies,  districts
    12  or  agencies.   An organization shall be deemed under the control of one
    13  or  more  municipal  corporations,  industrial   development   agencies,
    14  districts or agencies when one or more individuals who serve as officers
    15  or  employees  of any such municipal corporation, industrial development
    16  agency, district or agency: (a) select either a majority of  the  organ-
    17  ization's  highest policy-making body or the organization's chief execu-
    18  tive officer; (b) constitute a majority  of  the  voting  strength  that
    19  selects  either  a  majority of the organization's highest policy-making
    20  body or the organization's chief executive officer;  or  (c)  serve  as:
    21  (i) a majority of the organization's highest policy-making body; (ii) in
    22  his  or  her official capacity, the organization's chief executive offi-
    23  cer; or (iii) in his or her official capacity, a partner in  the  organ-
    24  ization.  An  organization  under  the  control of one or more municipal
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08963-01-9
        S. 5445                             2
     1  corporations, industrial development  agencies,  districts  or  agencies
     2  shall  also  include  any  other organization that is controlled by such
     3  organization.
     4    2. In connection with any examination authorized by subdivision one of
     5  this  section,  the  comptroller  and each examiner of municipal affairs
     6  shall have power to administer an oath to any person whose testimony may
     7  be required, and to compel the appearance and attendance of such  person
     8  for  the  purpose  of  any  such  examination and investigation, and the
     9  production of books and papers. In the case of a municipal  corporation,
    10  industrial  development agency, or school district, no such person shall
    11  be compelled to appear or be examined elsewhere than within such munici-
    12  pal corporation, industrial development agency, or school  district.  In
    13  the  case  of  any district other than a school district, no such person
    14  may be compelled to appear or be examined elsewhere than within the town
    15  or one of the towns  in  which  such  district  or  portion  thereof  is
    16  located. In the case of an urban renewal agency, no such person shall be
    17  compelled  to  appear  or  be examined outside the municipal corporation
    18  wherein such agency is established. In the case of a  fire  company,  no
    19  such person shall be compelled to appear or be examined outside the area
    20  served  by the company. In the case of an activity, no such person shall
    21  be compelled to appear outside the area served by the activity.  In  the
    22  case  of  an  organization  under  the  control of one or more municipal
    23  corporations, industrial development agencies, districts or agencies, no
    24  such person shall be compelled to appear or to be examined  outside  the
    25  county in which the organization has its principal headquarters. Willful
    26  false swearing in such examination shall be perjury and shall be punish-
    27  able as such.
    28    3. For purposes of this section, the term "a majority of the organiza-
    29  tion's  highest  policy-making  body" shall mean a majority of the whole
    30  number of positions comprising such body, provided, however, that if the
    31  documents establishing the organization's internal governance allow such
    32  body to act by a majority of a quorum,  then  such  term  shall  mean  a
    33  majority of the quorum.
    34    § 2. This act shall take effect immediately.