Add Art 1-B SS55 - 57, Art 1-C SS58 - 61, Art 1-D S62, Art 1-E SS63 - 63-c, Art 9 Title 5-ASS2895 - 2898, Pub
Auth L; add SS99-m & 99-n, St Fin L; amd S169, Exec L
Creates the public authority inspector general, independent budget office, and central procurement offices; relates to the disposition of property by authorities; relates to the salaries of certain state officers; relates to the lobbying of public authorities.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3
SPONSOR: Brodsky (MS)
TITLE OF BILL: An act to amend the public authorities law, in
relation to establishing the positions of the public authorities inspec-
tor general and the public authorities independent budget officer; in
relation to establishing central procurement offices; and in relation to
disposition of property by authorities; to amend the state finance law,
in relation to creating the public authorities inspector general's
office revenue account and the public authorities independent budget
office revenue account; and to amend the executive law, in relation to
the salaries of certain state officers
PURPOSE OR GENERAL IDEA OF BILL: This bill would provide for trans-
parency and responsiveness for the many public authorities and public
benefit corporations in the state by establishing a truly independent
inspector general, and an independent budget office, by requiring each
public authority to establish a central procurement office, and estab-
lishing procedures governing the disposition of property by public
authorities and other public benefit corporations.
SUMMARY OF SPECIFIC PROVISIONS: Section 1 would add a new article 1-B
to the Public Authorities Law.
* Section 55 would establish the position and office of the public
authorities inspector general (IG); provide that the IG be appointed by
the attorney general for a five year term; and establish the IG's salary
and mode of removal.
* Section 56 would allow the IG to appoint and remove staff, and estab-
lish and modify a plan of organization; it would establish a funding
mechanism by which the expenses of the IG's office would be paid by
assessing the public authorities and public benefit corporations.
* Section 57 would authorize the IG to investigate and report his or her
findings and to work on policies to avoid corruption and other abuse in
public authorities; it would authorize the IG to obtain evidence by
subpoena or otherwise and to require testimony under oath. It would also
require disclosure to the IG of information that is considered privi-
leged by the authorities, and provides a procedure for disclosing confi-
dential information and to protect a person who would be injured by such
Section 2 would add a new article 1-C to the Public Authorities Law.
* Section 58 would establish the position and office the public authori-
ties independent budget officer (IBO); provide that the IBO be appointed
by the Comptroller for a five year term; and establish the IBO's salary
and mode of removal.
* Section 59 would allow the IBO to appoint and remove staff, and estab-
lish and modify a plan of organization; it would establish a funding
mechanism by which the expenses of the IBO's office would be paid by
assessing the public authorities and public benefit corporations.
* Section 60 would require the IBO to collect, distribute and assess
information about the budget for each authority for the coming year; it
would authorize the IBO to make reports and to provide information to
the public and to elected officials.
* Section 61 would require each authority to submit its proposed annual
operating plan at least 90 days before it becomes effective; it would
also require quarterly reports in sufficient detail for proper evalu-
ation and comment.
Section 3 would add a new article 1-D.
* Section 62 would require each authority to create a central procure-
ment office responsible for all procurement. It would require each such
office to maintain certain information concerning each procurement
contract. It would require that this information be readily available to
the public. It would also encourage an exchange of such information with
other governmental agencies making the same type of procurements.
Section 4 would add a new article 1-E.
* Section 63 would restrict certain lobbying practices during the
procurement contract process. This section foremost creates a trail of
transparency in the procurement process. It would require that all
procurement contract proposals include official contacts for the
contractor to limit undue and improper influence on the process. It
would require the authority to appoint a central procurement independent
officer to oversee the process. It also limits contact between a
contractor and an authority during the pendency of the contract to miti-
gate any improper lobbying influence in the procurement contract proc-
ess. Finally it requires lobbyists who represent clients for procure-
ment contracts and proposals to submit such activity and representation
to the New York State temporary commission on lobbying as well as the
Section 5 of the bill would add a new title 5-A to article 9 of the
public authorities law consisting of sections 2895 through 2898.
* Section 2895 establishes certain definitions.
* Section 2896 identifies certain procedures with respect to the sale of
* Section 2897 sets forth the manner in which such property shall be
* Section 2898 provides for the prior approval of the comptroller.
Section 5 would establish a special funds under the state finance law
for the financing of the offices of the Inspector General and the Inde-
pendent Budget Officer.
Section 6 would establish the salary of the Inspector General and the
Independent Budget Office in the Executive Law.
Section 7 would establish a time for the changeover from the current
inspector general appointed by the Governor to the new IG, require an
orderly transition, and prohibit the destruction of records.
Section 8 establishes the effective date.
EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER: Most public
authorities have no statutory inspector general, and none have statutory
independent budget officers or central procurement office. Also,
currently there are no statutory requirements regarding the sale of
JUSTIFICATION: Literally billions of dollars are expended each year
by the dozens of authorities throughout the state. Recent Assembly hear-
ings into events at the Metropolitan Transportation Authority, the Thru-
way Authority and the Canal Corporation, among other public benefit
corporations have shown the need for significant improvements in trans-
parency and responsiveness. These goals can be achieved with:
* A vigorous and independent inspector general with the powers and staff
needed to do the important job of policing the behavior of officers and
employees of public authorities.
* An independent budget officer with the staff and budget to provide a
financial review of a public authority that if made from the outside
with information from the inside.
* A central office where the contracts of the authorities are available
to concerned public officials and citizens.
* Creating transparency in the procurement contract process and
restricting lobbying at certain key points of the contract process.
* Comprehensive rules for the sale of real and personal property owned
by public authorities.
PRIOR LEGISLATIVE HISTORY: A.9010-C (Passed Assembly)
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: Undetermined at
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK
2005-2006 Regular Sessions
January 5, 2005
Introduced by M. of A. BRODSKY, TOKASZ, M. COHEN, GLICK, ENGLEBRIGHT,
PAULIN, CUSICK, COLTON, SEDDIO -- Multi-Sponsored by -- M. of A.
ABBATE, AUBERTINE, BING, BOYLAND, BRADLEY, BRENNAN, CAHILL, CANES-
TRARI, CHRISTENSEN, CLARK, A. COHEN, COOK, CYMBROWITZ, DelMONTE,
DESTITO, DiNAPOLI, DINOWITZ, EDDINGTON, ESPAILLAT, FARRELL, FIELDS,
GALEF, GANTT, GORDON, GOTTFRIED, GRANNIS, GREENE, GUNTHER, HEASTIE,
JACOBS, JOHN, KARBEN, KOON, LAFAYETTE, LATIMER, LAVELLE, LAVINE,
LENTOL, LIFTON, LUPARDO, MAGEE, MAGNARELLI, MARKEY, McENENY, McLAUGH-
LIN, MENG, MILLMAN, MORELLE, NOLAN, NORMAN, O'DONNELL, ORTIZ, PEOPLES,
PERALTA, PERRY, PHEFFER, POWELL, PRETLOW, RAMOS, REILLY, P. RIVERA,
SANDERS, SCARBOROUGH, SCHROEDER, SWEENEY, TONKO, WEINSTEIN, WEISEN-
BERG, WRIGHT, ZEBROWSKI -- read once and referred to the Committee on
Corporations, Authorities and Commissions
AN ACT to amend the public authorities law, in relation to establishing
the positions of the public authorities inspector general and the
public authorities independent budget officer; in relation to estab-
lishing central procurement offices; and in relation to disposition of
property by authorities; to amend the state finance law, in relation
to creating the public authorities inspector general's office revenue
account and the public authorities independent budget office revenue
account; and to amend the executive law, in relation to the salaries
of certain state officers
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The public authorities law is amended by adding a new arti-
2 cle 1-B to read as follows:
3 ARTICLE 1-B
4 PUBLIC AUTHORITIES INSPECTOR GENERAL
5 Section 55. Public authorities inspector general; appointment; term of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 is old law to be omitted.
A. 3 2
1 56. Office of the public authorities inspector general.
2 57. Authority of the inspector general.
3 § 55. Public authorities inspector general; appointment; term of
4 office. 1. As used in this article:
5 a. the term "attorney general" shall mean the New York state attorney
7 b. the term "inspector general" shall mean the public authorities
8 inspector general created by subdivision two of this section; and
9 c. the term "public authority" shall include any authority or other
10 public benefit corporation created in this chapter or any other law.
11 2. There shall be a public authorities inspector general who shall
12 have and exercise the powers, duties and prerogatives provided by this
13 chapter and any other provisions of law. The inspector general shall be
14 appointed by the attorney general.
15 3. The term of the first inspector general appointed under this arti-
16 cle shall begin on the date of appointment, and shall end on the March
17 thirty-first of the fifth calendar year beginning after the effective
18 date of this article. All subsequent inspectors general shall be
19 appointed for a five year term. In the event that a vacancy shall occur
20 for any reason during any five year term, the vacancy shall be filled
21 for the remainder of the uncompleted term, provided, however, that if
22 the uncompleted term is less than two years, the attorney general may
23 appoint the new inspector general to a full five year term.
24 4. The office of the inspector general shall be an independent office
25 and shall not be a unit of the attorney general's office. The salary of
26 the inspector general shall be as provided by law, and the annual budget
27 for the office shall be determined and funded in the manner provided by
28 section fifty-six of this article. The office of general services shall
29 arrange for suitable office space, equipment and resources. Each public
30 authority subject to the office of the inspector general shall provide
31 suitable office space, equipment and resources for employees of the
32 inspector general assigned to such public authority on a full-time or
33 part-time basis.
34 5. The inspector general may not be removed except by a joint resol-
35 ution of the legislature, after notice and opportunity for hearing, only
37 a. permanent disability;
38 b. inefficiency;
39 c. neglect of duty;
40 d. malfeasance; or
41 e. a felony or conduct involving moral turpitude.
42 § 56. Office of the public authorities inspector general. 1. The
43 inspector general shall be authorized to appoint and at pleasure remove
44 deputy inspectors general, assistant deputy inspectors general, and such
45 other staff, including investigators, accountants, administrative
46 assistants and such other support staff and consultants as he or she
47 shall deem necessary and appropriate to accomplish the responsibilities
48 and duties contained in this article or elsewhere in law, and fix and
49 determine the qualifications, duties and compensation of such additional
50 officers and staff, subject to the provisions of the civil service law
51 and such rules as the civil service commission may adopt and make appli-
52 cable to the office of the inspector general. The inspector general may
53 also from time to time contract for such expert professional services as
54 may be deemed necessary and convenient.
55 2. Not more than ninety days from the beginning of his or her term,
56 the first inspector general shall propose and deliver to the governor,
A. 3 3
1 the attorney general, the comptroller, the temporary president of the
2 senate, and the speaker of the assembly a plan of organization of the
3 office of the inspector general so as to provide the services normally
4 provided by an inspector general in an adequate and cost effective
5 manner. Thereafter, the inspector general may from time to time propose
6 an amended or modified plan of organization. Such plan shall evaluate
7 the projected needs of each public authority for the services of the
8 inspector general which shall be based on relevant considerations,
9 including without limitation, the size of the authority and the complex-
10 ity of its business; whether the business of the authority is such that
11 would provide greater or less opportunity for wrongdoing and whether
12 there is any history of wrongdoing in the authority; and whether there
13 are other authorities in the same or similar business such that it would
14 promote efficiency for them to share inspector general staff. Such
15 proposed plan of organization shall set forth the following items:
16 a. the names of the public authorities that require a full-time deputy
17 inspector general with or without one or more assistant deputy inspec-
18 tors general;
19 b. a description of groups of public authorities, by names, by charac-
20 teristics, or by purpose that could be covered by one deputy inspector
21 general with or without one or more assistant deputy inspectors general;
22 c. a plan to provide inspector general services to the public authori-
23 ties not covered by paragraphs a and b of this subdivision; and
24 d. such other matter as may be deemed appropriate.
25 3. The plan of organization of the inspector general shall be effec-
26 tive until modified, amended or replaced by law.
27 4. Notwithstanding any plan of organization, the inspector general may
28 be required by law to provide inspector general services to any public
29 authority or group of public authorities in a specific manner specified
30 in such law.
31 5. All costs and expenses of the office of the inspector general shall
32 be paid pursuant to appropriation in the first instance from the state
33 treasury on the certification of the inspector general and upon the
34 audit and warrant of the comptroller. The state treasury shall be reim-
35 bursed therefor by payments to be made thereto from all moneys collected
36 pursuant to this section. The total of such costs and expenses shall be
37 borne by the public authorities and public benefit corporations subject
38 to the inspector general, to be assessed in the manner provided in
39 subdivisions six, seven and eight of this section.
40 6. The inspector general shall estimate and deliver to the attorney
41 general, the comptroller, the director of the budget, the temporary
42 president of the senate, and the speaker of the assembly prior to Decem-
43 ber first of each year the total costs and expenses for the subsequent
44 state fiscal year, including the compensation and expenses of the
45 inspector general and his or her staff, their agents and employees, and
46 including the cost of retirement contributions, social security, health
47 and dental insurance, survivor's benefits, workers' compensation, unem-
48 ployment insurance and other fringe benefits required to be paid by the
49 state for the personnel of the office of the inspector general, and
50 including all other items of maintenance and operation expenses, and all
51 other direct and indirect costs. Based on such estimate, the inspector
52 general shall determine the amount to be paid by each public authority
53 and public benefit corporation in accordance with subdivision seven of
54 this section. Unless amended by law, the estimate and allocation shall
55 become final. The inspector general shall render bills in accordance
56 with the original estimate and allocation to each such public authority
A. 3 4
1 and public benefit corporation, not later than February first prior to
2 the beginning of the applicable fiscal year; an amended bill in accord-
3 ance with any amending chapter of law shall be sent out as soon as prac-
4 ticable after the enactment of such law.
5 7. The estimate of total costs and expenses shall be allocated among
6 the public authorities on an equitable basis consistent with the follow-
7 ing principles:
8 a. each public authority shall be assessed for the estimated costs and
9 expenses relating to any deputy inspector general, all other personnel,
10 and any other expenditures dedicated to such public authority;
11 b. each public authority that is a member of a group of public author-
12 ities which shares resources shall be assessed for a proportional share
13 of the estimated costs and expenses relating to any deputy inspector
14 general, all other personnel, and any other expenditures dedicated to
15 such group; and
16 c. each public authority shall be assessed for a proportional share of
17 the estimated costs and expenses relating to the inspector general, any
18 deputy inspector generals, and all other personnel, and any other
19 expenditures which are not dedicated to any public authority or group of
20 public authorities.
21 8. The public authorities shall pay the inspector general's assessment
22 to the state treasury in quarterly installments due on or before April
23 first (which payment may be provisional if a final amended bill has not
24 been sent), July first, October first, and January first of each state
25 fiscal year.
26 § 57. Authority of the inspector general. 1. In addition to any other
27 duties and responsibilities as may be provided by law, the inspector
28 general shall have the duty and responsibility to:
29 a. initiate, conduct, and supervise such inquiries and investigations
30 relating to any alleged or possible wrong, whether civil, criminal,
31 administrative, or ethical in nature, in any public authority as he or
32 she considers appropriate based on information received from any officer
33 or employee of the authority or from any other informant, or upon his or
34 her own initiative, provided, however, that the inspector general shall
35 promptly turn over to the proper prosecutorial authorities any substan-
36 tial evidence that a crime has been committed;
37 b. investigate evidence or allegations of corruption, graft, fraud,
38 conflicts of interest, unlawful discrimination or other abuse in any
39 public authority;
40 c. inform the governor, the comptroller, the leaders of the senate and
41 the assembly, the boards and executive management of the involved public
42 authority and the public concerning allegations, evidence and the
43 results of investigations; provided, however, that such reporting shall
44 be done at such times and in such detail as the circumstances require;
45 d. recommend appropriate action with respect to each investigation,
46 such as disciplinary action, civil lawsuit, criminal prosecution, or
47 referral to an appropriate federal, state, or local agency for further
48 investigation or action and to cooperate in any continuing investi-
50 e. prepare and release to the public written reports of each such
51 investigation and periodic summary reports of investigative activity;
52 provided, however, that such reports and summary reports may be delayed,
53 redacted, or written using fictitious names so as to preserve the priva-
54 cy rights of affected individuals;
A. 3 5
1 f. review and examine the policies and procedures of public authori-
2 ties with regard to the prevention and detection of corruption, graft,
3 fraud, conflicts of interest, unlawful discrimination or other abuse;
4 g. recommend remedial action to prevent or eliminate corruption,
5 graft, fraud, conflicts of interest, unlawful discrimination or other
6 abuse; and
7 h. establish or monitor training programs for officers and employees
8 of public authorities regarding the prevention or elimination of
9 corruption, graft, fraud, conflicts of interest, unlawful discrimination
10 or other abuse.
11 2. In addition to the authority otherwise provided by law, the inspec-
12 tor general, each deputy inspector general and each assistant deputy
13 inspector general, in carrying out the provisions of this article, is
14 authorized to:
15 a. have access to all records, reports, audits, reviews, documents,
16 papers, recommendations, or other material on any matter involving the
17 operations or administration of any public authority subject to investi-
18 gation by the inspector general;
19 b. request such information or assistance as may be necessary for
20 carrying out the duties and responsibilities of the inspector general
21 from any federal, state, or local government or any agency or unit ther-
23 c. require by subpoena the production of all information, documents,
24 reports, answers, records, accounts, papers, and other data and documen-
25 tary evidence necessary or useful in the performance of the duties or
26 responsibilities of the inspector general, which subpoena shall be
27 enforceable by order of the supreme court of appropriate jurisdiction
28 and venue;
29 d. administer to or take from any person an oath, affirmation, or
30 affidavit, whenever necessary in the performance of the duties or
31 responsibilities of the inspector general, which oath, affirmation, or
32 affidavit when administered or taken by or before an employee of the
33 office of inspector general designated by the inspector general shall
34 have the same force and effect as if administered or taken by or before
35 a notary public;
36 e. have direct and prompt access to the head of any public authority
37 when necessary or useful in the performance of the duties or responsi-
38 bilities of the inspector general; and
39 f. enter into contracts and other arrangements for audits, studies,
40 analyses, and other services with public agencies or with private
41 persons as may be deemed necessary or useful in the performance of the
42 duties or responsibilities of the inspector general.
43 3. a. No information, documents, reports, answers, records, accounts,
44 papers, and other data and documentary evidence shall be denied to the
45 inspector general or any person acting on behalf of the inspector gener-
46 al: (i) because of any privilege or alleged privilege, including but not
47 limited to the attorney-client privilege, executive privilege, or public
48 interest privilege, which belongs to or could be waived by the public
49 authority in possession of the information; or (ii) because of any
50 defense that the public authority may have against any request for any
51 such evidence under article six of the public officers law.
52 b. If any public authority believes that any such evidence is privi-
53 leged or otherwise protected against disclosure, such public authority
54 shall nevertheless make or permit any such disclosure, and the public
55 authority may at the time of such disclosure make a claim of confiden-
A. 3 6
1 tiality for any such evidence and state with particularity the nature of
2 such claim.
3 c. Notwithstanding any other provisions of statute or common law, the
4 disclosure of any evidence to the inspector general under a claim of
5 confidentiality shall not be construed to be a waiver of any privilege
6 or any other protection against disclosure. Such evidence shall be
7 protected against subpoena or other form of forced disclosure to the
8 same extent that it would have been if it had never been disclosed to
9 the inspector general.
10 d. The inspector general may in his or her discretion determine to
11 disclose any evidence received under the claim of confidentiality upon a
12 finding that the matter under investigation is highly important to the
13 public authority and that the public has a right to receive knowledge of
14 the result of the investigation, and that the evidence (i) is highly
15 material and relevant to the matter under investigation; (ii) that it is
16 critical or necessary to an understanding of the outcome of the investi-
17 gation; and (iii) that it is not readily obtainable from any alternative
19 e. Notwithstanding paragraph d of this subdivision, the inspector
20 general may not disclose any evidence received under a claim of confi-
21 dentiality without first giving thirty days advance written notice to
22 the public authority and any other person who may be entitled to object
23 to the disclosure of the evidence. In the event of any civil action to
24 prevent the disclosure of any such evidence, the court shall allow the
25 disclosure unless it shall find that the inspector general has abused
26 his or her discretion. The court may award reasonable attorneys' fees
27 and disbursements reasonably incurred to a litigant that substantially
28 prevails against the release of information by the inspector general if
29 the inspector general lacked a reasonable basis pursuant to this article
30 for the challenged release of information.
31 § 2. The public authorities law is amended by adding a new article 1-C
32 to read as follows:
33 ARTICLE 1-C
34 PUBLIC AUTHORITIES INDEPENDENT BUDGET OFFICE
35 Section 58. Public authorities independent budget officer; appointment;
36 term of office.
37 59. Office of the public authorities independent budget officer.
38 60. Authority and duties of the independent budget officer.
39 61. Submission of annual operating plan; review and comment.
40 § 58. Public authorities independent budget officer; appointment; term
41 of office. 1. As used in this article:
42 (a) the term "comptroller" shall mean the New York state comptroller;
43 (b) the term "independent budget officer" shall mean the public
44 authorities independent budget officer created by subdivision two of
45 this section; and
46 (c) the term "public authority" shall include any authority or other
47 public benefit corporation created in this chapter or any other law.
48 2. There shall be a public authorities independent budget officer who
49 shall have and exercise the powers, duties and prerogatives provided by
50 this chapter and any other provisions of law. The independent budget
51 officer shall be appointed by the comptroller.
52 3. The term of the first independent budget officer appointed under
53 this article shall begin on the date of appointment, and shall end on
54 the thirty-first of March of the fifth calendar year beginning after the
55 effective date of this act. All subsequent independent budget officers
A. 3 7
1 shall be appointed for a five year term. In the event that a vacancy
2 shall occur for any reason during any five year term, the vacancy shall
3 be filled for the remainder of the uncompleted term, provided, however,
4 that if the uncompleted term is less than two years, the comptroller may
5 appoint the new independent budget officer to a full five year term.
6 4. The office of the independent budget officer shall be an independ-
7 ent office. The salary of the independent budget officer shall be as
8 provided by law, and the annual budget for the office shall be deter-
9 mined and funded in the manner provided by section fifty-nine of this
10 article. The office of general services shall arrange for suitable
11 office space, equipment and resources. Each public authority subject to
12 the office of the independent budget officer shall provide suitable
13 office space, equipment and resources for employees of the independent
14 budget officer assigned to such public authority on a full-time or part-
15 time basis.
16 5. The independent budget officer may be removed by the comptroller
17 but only after notice and opportunity for hearing, and only for:
18 (a) permanent disability;
19 (b) inefficiency;
20 (c) neglect of duty;
21 (d) malfeasance; or
22 (e) a felony or conduct involving moral turpitude.
23 § 59. Office of the public authorities independent budget officer. 1.
24 The independent budget officer shall be authorized to appoint and at
25 pleasure remove deputy budget officers, assistant deputy budget offi-
26 cers, and such other staff, including accountants, administrative
27 assistants and such other support staff and consultants as he or she
28 shall deem necessary and appropriate to accomplish the responsibilities
29 and duties contained in this article or elsewhere in law, and fix and
30 determine the qualifications, duties and compensation of such additional
31 officers and staff, subject to the provisions of the civil service law
32 and such rules as the civil service commission may adopt and make appli-
33 cable to the office of the independent budget officer. The independent
34 budget officer may also from time to time contract for such expert
35 professional services as may be deemed necessary and convenient.
36 2. Not more than ninety days from the beginning of his or her term,
37 the first independent budget officer shall propose to the comptroller a
38 plan of organization of the office of the independent budget officer
39 such that the independent budget officer will be able to provide the
40 services required pursuant to this article in the most cost-effective
41 way. Thereafter, any independent budget officer may from time to time
42 submit an amended or modified plan of organization. Such proposed plan
43 of organization shall include, without limitation, the following items:
44 (a) the names of the public authorities that require a full-time depu-
45 ty budget officer with or without one or more assistant deputy budget
47 (b) a description of groups of public authorities, by names, by char-
48 acteristics or by function, that could be covered by one deputy budget
49 officer with or without one or more assistant deputy general; and
50 (c) a plan to provide independent budget officer services to the
51 public authorities not covered by paragraphs (a) and (b) of this subdi-
53 3. The plan of organization of the independent budget officer shall be
54 effective until modified, amended or replaced by the comptroller or by
A. 3 8
1 4. The independent budget officer shall estimate and deliver to the
2 comptroller, the director of the budget, the temporary president of the
3 senate and the speaker of the assembly prior to November first of each
4 year the total costs and expenses for the subsequent state fiscal year,
5 including the compensation and expenses of the independent budget offi-
6 cer and his or her staff, their agents and employees, and including the
7 cost of retirement contributions, social security, health and dental
8 insurance, survivor's benefits, workers' compensation, unemployment
9 insurance and other fringe benefits required to be paid by the state for
10 the personnel of the office of the independent budget officer, and
11 including all other items of maintenance and operation expenses, and all
12 other direct and indirect costs. Based on such estimate, the independent
13 budget officer shall determine the amount to be paid by each public
14 authority and public benefit corporation in accordance with subdivision
15 five of this section. Unless amended by law, the estimate and allocation
16 shall become final. The independent budget officer shall render bills in
17 accordance with the original estimate and allocation to each such public
18 authority and public benefit corporation, not later than February first
19 prior to the beginning of the applicable fiscal year; an amended bill in
20 accordance with any amending law shall be sent out as soon as practica-
21 ble after the enactment of such law.
22 5. The estimate of total costs and expenses shall be allocated among
23 the public authorities on an equitable basis consistent with the follow-
24 ing principles:
25 (a) each public authority shall be assessed for the estimated costs
26 and expenses relating to any deputy independent budget officer, all
27 other personnel, and any other expenditures dedicated to such public
29 (b) each public authority that is a member of a group of public
30 authorities which shares resources shall be assessed for a proportional
31 share of the estimated costs and expenses relating to any deputy inde-
32 pendent budget officer, all other personnel, and any other expenditures
33 dedicated to such group; and
34 (c) each public authority shall be assessed for a proportional share
35 of the estimated costs and expenses relating to the independent budget
36 officer, any deputy independent budget officers, all other personnel,
37 and any other expenditures which are not dedicated to any public author-
38 ity or group of public authorities.
39 6. The public authorities shall pay the independent budget officer's
40 assessment to the state treasury in quarterly installments due on or
41 before April first (which payment may be provisional if a final amended
42 bill has not been sent), July first, October first, and January first of
43 each state fiscal year.
44 § 60. Authority and duties of the independent budget officer. 1. The
45 independent budget officer shall be authorized to secure such informa-
46 tion, data, estimates and statistics from any public authority as he or
47 she determines to be necessary for the performance of the functions and
48 duties of the office, and such public authority shall provide such
49 information, to the extent that it is available, in a timely fashion.
50 The independent budget officer shall not be entitled to obtain records
51 which are protected by the privileges for attorney-client communi-
52 cations, attorney work product, and material prepared for litigation.
53 2. It shall be the duty of the independent budget office to provide to
54 the board of each authority, any elected public official of state or
55 local government interested in each authority, and any action group
56 organized for the purpose of affecting any authority's governance and
A. 3 9
1 operations any information which will assist such bodies and officials
2 in the discharge of their responsibilities or functions which are
3 related to the budgetary process, including:
4 (a) information with respect to the budget expenditures;
5 (b) information with respect to estimated revenues and receipts and
6 changing revenue conditions; and
7 (c) to the extent practicable, such other information or analyses as
8 may be requested by such bodies or officials.
9 3. The independent budget officer shall from time to time publish such
10 reports as may be appropriate to enhance official and public understand-
11 ing of the budgetary process and of the budget documents published by
12 each public authority. The independent budget officer shall from time to
13 time publish such reports as may be necessary or appropriate to provide
14 such information, data, and analysis as will enhance official and public
15 understanding of matters relating to each authority's revenues, expendi-
16 tures, financial management practices and related matters.
17 4. The independent budget officer shall make all information, data,
18 estimates, and statistics obtained in the course of his or her duties,
19 and all studies and reports prepared by the office, available for public
20 inspection and copying during normal business hours and shall, to the
21 extent practicable, furnish a copy of any such information or report to
22 any person upon request at a reasonable cost.
23 § 61. Submission of annual operating plan; review and comment. 1. As
24 used in this section the term "operating plan" shall mean a financial
25 budget showing projected revenues and expenses for the next fiscal year,
26 together with the operating assumptions underlying such budget and any
27 changes in operations, fees and charges, and other aspects of the oper-
28 ations of the authority which support such budget.
29 2. Not less than ninety days before the beginning of the fiscal year
30 of each public authority beginning on or after the January first follow-
31 ing the enactment of this article and each fiscal year thereafter, and
32 not less than sixty days before a budget for each such fiscal year is
33 submitted to the board for approval, each public authority shall submit
34 its proposed operating plan for the following fiscal year to the inde-
35 pendent budget officer and such elected public officials and actions
36 groups as are interested in such authority's affairs. Such authority
37 shall at the same time publish such operating plan to the public. Such
38 operating plan shall be at such level of detail as to allow a meaningful
39 review of the operations of the authority, and shall show comparisons
40 between the plan, and both the latest available year-to-date and
41 expected annual results for the year in which the plan is submitted and
42 the actual results for the year immediately prior thereto. Any elected
43 public official or the independent budget officer to whom the authority
44 is required to submit its operating plan under this subdivision may
45 request a more detailed version of the operating plan. In such a case,
46 the authority shall supply copies of such version of the operating plan
47 to each person entitled to receive the operating plan under this
49 3. Each operating plan shall be accompanied by a report summarizing
50 the extent to which planned goals developed for the current and previous
51 years were achieved, the causes of any failure to achieve such goals,
52 and corrective measures the authority intends to take to avoid non-ac-
53 hievement of such goals in the upcoming year.
54 4. The persons entitled to receive copies of the operating plan pursu-
55 ant to this section may solicit comments from any interested persons or
56 any group representing interested persons through appropriate notice
A. 3 10
1 with or without public hearings and may submit to the board of the
2 authority and publish a report commenting on the plans recommending
3 general or specific modifications to the operating plan.
4 5. The board of each public authority at the time of adopting a budget
5 for each year shall issue a report responding to any report issued
6 pursuant to subdivision four of this section and explaining why any
7 recommendations were or were not implemented. Such report shall be given
8 to each person entitled to receive the operating plan pursuant to this
10 6. Each public authority shall provide quarterly financial reports no
11 later than the fifteenth of the following month to the persons entitled
12 to receive the operating plan under this section. Such reports shall
13 show comparisons with the prior year and with the operating plan.
14 § 3. The public authorities law is amended by adding a new article 1-D
15 to read as follows:
16 ARTICLE 1-D
17 CENTRAL PROCUREMENT OFFICE
18 Section 62. Central procurement office.
19 § 62. Central procurement office. 1. As used in this section, the term
20 "authority" shall mean a public authority or other public benefit corpo-
21 ration created under this chapter or any other provision of law.
22 2. There shall be created within each authority a central procurement
23 office. All contracts for the procurement of goods and services of every
24 kind for each such authority and each and every subsidiary of the
25 authority shall be entered into on behalf of such authority by the
26 central procurement officer or his or her delegate.
27 3. In addition, the central procurement office shall have responsibil-
28 ity to maintain, in a central place which is accessible to the public,
29 standard information regarding each procurement contract with the
30 authority and each contractor involved in such a contract. Such informa-
31 tion shall include:
32 a. a copy of the contract;
33 b. information regarding the method by which the contract was let;
34 c. such standard documents as the contractor is required to submit and
35 any memoranda of the authority and its subsidiaries concerning analysis
36 of the comparative costs of using the vendor to perform the work and
37 using authority employees to perform the work;
38 d. information regarding the contractor's qualifications and perform-
40 e. any evaluation of the contractor and any contractor responses to
41 such evaluations;
42 f. any audits of the contract and any contractor responses to such
43 audits; and
44 g. any decisions regarding the suspension or debarment of the contrac-
46 4. The information on contracts and contractors shall be computerized
47 to the extent feasible. The computerized information shall be stored in
48 a manner which allows for meaningful read-only access to such informa-
49 tion by the name of the unit of the authority using the contractor,
50 contractor name, contract category, and contract number in prior notices
51 published by the authority. The computerized information shall be made
52 available to the public through computer terminals accessible to the
53 public in appropriate authority locations. The authority shall, to the
54 extent feasible, cooperate with any other municipalities which maintain
55 similar information regarding contracts and contractors in the same area
56 as the authority to share and integrate the authority's information on
A. 3 11
1 contracts and contractors with the information developed by such other
3 § 4. The public authorities law is amended by adding a new article 1-E
4 to read as follows:
5 ARTICLE 1-E
6 PROCUREMENT LOBBYING
7 Section 63. Definitions.
8 63-a. Central procurement independent officer.
9 63-b. Procurement lobbying reporting requirements and prohibi-
11 63-c. Registration of lobbyists.
12 § 63. Definitions. As used in this article:
13 1. "Authority" shall mean a public authority or other public benefit
14 corporation created under this chapter or any other provision of law and
15 shall include an officer or employee of the executive department as
16 defined in article three of the executive law.
17 2. "Procurement contract" shall mean a written contract let by the
18 authority for the acquisition of goods or services in support,
19 construction, purchase, sale or lease of real property; the acquisition
20 or granting of other interest in real property or of authority functions
21 or operations.
22 3. "Proposal" shall mean any proposal, quotation, offer or response to
23 an authority's competitive solicitation of submissions relating to an
24 award of a procurement contract or to any unsolicited proposal, quota-
25 tion, offer or submission of any potential procurement contract.
26 4. "Lobbying" shall mean any attempt to influence any action by, or
27 communication directly or soliciting others to communicate with, any
28 officer, employee, agent, consultant or any other person having any
29 power or authority related to the procurement of goods or services in
30 support, construction, purchase, sale or lease of real property; the
31 acquisition or granting of any other interest in real property; or
32 authority functions or operations. "Lobbying" shall not include:
33 (a) any activity relating to procurements made under section one
34 hundred sixty-two of the state finance law undertaken by (i) the non-
35 profit-making agencies appointed pursuant to paragraph e of subdivision
36 six of section one hundred sixty-two of the state finance law by the
37 state commissioner of the office of children and family services, the
38 New York state commission for the blind and visually handicapped, or the
39 state commissioner of education, and (ii) the qualified charitable non-
40 profit-making agencies for the blind, and qualified charitable non-pro-
41 fit-making agencies for other severely disabled persons as identified in
42 subdivision two of section one hundred sixty-two of the state finance
44 (b) participants, including those appearing on behalf of a client, in
45 a publicly noticed conference pursuant to a request for bids or
47 (c) persons who have been tentatively awarded a contract or represent
48 persons who have been tentatively awarded a contract and are engaged in
49 communications with an authority solely for the purpose of negotiating
50 the terms of the contract after being notified of such award;
51 (d) persons or the representatives of persons who (i) are a party to a
52 protest, appeal or other proceeding (including the apparent successful
53 bidder or contractor and his or her representative); or
54 (ii) request a review of a procurement decision;
A. 3 12
1 (e) the submission of a bid or proposal (whether submitted orally or
2 in writing) in response to a request for bids or proposals as long as
3 that person is an official contact on the proposal;
4 (f) prospective bidders or proposers or their representatives submit-
5 ting questions to a designated agency or municipal contact set forth in
6 a request for bids or proposals; and
7 (g) officers and employees of statewide elected officials including
8 individuals who act as paid or unpaid advisors or consultants to state-
9 wide elected officials, except members of advisory commissions, boards
10 and by the definition of authorities as defined in this section.
11 5. "Improper lobbying influence" shall mean any attempt to influence
12 any determination of an employee or representative of the authority,
13 achieve preferential, unequal or favored consideration of a proposal
14 submitted for a procurement contract award, based on considerations
15 other than the merits of the proposal, including but not limited to any
16 conduct prohibited by sections seventy-three or seventy-four of the
17 public officers law.
18 6. "Contractor" shall mean any bidder, offeror or proposer for a
19 procurement contract and shall include any subcontractor or other repre-
20 sentative or person with a financial interest on behalf of such person.
21 7. "Pendency of a procurement contract award" shall mean the process-
22 ing period for letting a procurement contract, commencing with the
23 earliest published written notice, advertisement or solicitation of
24 expressions of interest or proposals, and ending with the state comp-
25 troller's or the authority's final contract approval.
26 § 63-a. Central procurement independent officer. The head of each
27 authority shall appoint a central procurement independent officer. The
28 central procurement officer shall work within the central procurement
29 office and shall have primary responsibility for the prevention of
30 improper lobbying influence in procurement contracts. The central
31 procurement officer is authorized to adopt other procedural controls or
32 rules in addition to those established in this section in consultation
33 with the head of the authority. The salary, staff and office space
34 allotted to the central procurement independent officer shall be estab-
35 lished by the head of the authority, but consistent with the terms
36 established for the inspector general and independent budget officer.
37 The central procurement independent officer may not be removed except by
38 a joint resolution of the legislature, after notice and opportunity for
39 hearing, only for:
40 1. permanent disability;
41 2. inefficiency;
42 3. neglect of duty;
43 4. malfeasance; or
44 5. a felony or conduct involving moral turpitude.
45 § 63-b. Procurement lobbying reporting requirements and prohibition.
46 1. All proposals for procurement contracts must include the name,
47 address, telephone number, place of principal employment and occupation
48 of all persons who will contact the authority on behalf of the contrac-
49 tor. These persons shall be authorized to contact the authority on
50 behalf of the contractor.
51 2. The central procurement officer shall require that all represen-
52 tatives of the authority who contact contractors or their represen-
53 tatives with regard to a proposal, or are contacted by contractors or
54 their representatives with regard to a proposal, must report such
55 contact to the central procurement officer, including the name, date,
56 time, and content of the call. The central procurement officer shall
A. 3 13
1 create a listing of all persons that contact any representative of the
2 authority with regard to a proposal or procurement contract and a list-
3 ing of all persons that were contacted by any representative of the
4 authority with regard to a procurement contract. Such reports must
5 include the name of the person who contacted the authority, the person
6 whom the contactor is representing, and the date and time of the
7 contact, including a brief description of the content of the call.
8 3. If any person contacts any representative of the authority and his
9 or her name is not included on the proposal as required in subdivision
10 one of this section, it shall be considered improper lobbying influence.
11 The central procurement officer shall report such violation to the
12 inspector general immediately. Additionally, no state officer or
13 employee, subject to the provisions of paragraph (a) of subdivision four
14 of section seventy-three of the public officers law shall engage in
15 lobbying or lobbying activities as provided for in this section. Such
16 action shall be improper lobbying influence.
17 4. During the pendency of the procurement contract award there shall
18 be no contact between a contractor or his or her representative and the
19 authority except for informational or technical information. Such guide-
20 lines shall be established by the inspector general. All other contact
21 during this period shall constitute improper lobbying influence.
22 Persons or contractors who have been tentatively awarded a contract or
23 represent persons who have been tentatively awarded a contract and are
24 engaged in communications with an authority solely for the purpose of
25 negotiating the terms of the contract after being notified of such award
26 is not prohibited. Such contract must be logged under subdivision two of
27 this section.
28 5. The central procurement officer upon being notified of or discover-
29 ing attempted improper lobbying influence shall immediately investigate
30 such allegation and shall give the contractor an opportunity to be heard
31 in response to such allegation. The central procurement officer or any
32 representative of the authority shall report any allegations of improper
33 lobbying influence or attempted lobbying influence immediately to the
34 inspector general and the head of the authority. If improper lobbying
35 influence or attempted improper lobbying influence is found to have
36 occurred, then the authority may impose such sanction as it shall deem
37 appropriate, including but not limited to the elimination of the
38 proposal from consideration. Any determination made by the authority
39 shall be reported to the inspector general.
40 6. All records and documents required to be retained by the authority
41 in this section shall be available for review by the public.
42 7. The central procurement officer shall submit an annual report to
43 the inspector general by January first that reports on the various
44 procurement contracts entered into by the authority, a list of the vari-
45 ous contractors and their representatives that contacted the authority
46 with regard to procurement contracts, the instances of any attempted or
47 found cases of improper lobbying influence and other related material
48 and information the central procurement officer finds relevant.
49 8. The authority, prior to making an award of a procurement contract,
50 shall make a determination of responsibility of the proposed awardee.
51 Every authority shall ensure that each proposal for procurement
52 contracts requires contractors to disclose findings of non-responsibili-
53 ty made within the previous five years by any authority where such prior
54 finding of non-responsibility was due to intentional provision of false
55 or incomplete information to an authority. In making a determination of
56 responsibility, an authority shall take into account any such prior
A. 3 14
1 finding and shall not award a contract to such contractor. The failure
2 of the contractor to timely disclose accurate and complete information
3 or to otherwise cooperate with an authority shall be considered by such
4 authority in its determination of the responsibility of such contractor.
5 9. Every procurement contract shall contain a certification by the
6 awardee that all information provided to the authority is complete, true
7 and accurate and shall contain a provision authorizing the authority to
8 terminate such procurement contract in the event such certification is
9 found to be intentionally false or intentionally incomplete.
10 10. Any member, officer, employee or representative of the authority
11 who fails to comply with this section shall be subject to appropriate
12 disciplinary action by the authority and when appropriate, disciplinary
13 action shall be taken by the inspector general under article one-B of
14 this chapter.
15 § 63-c. Registration of lobbyists. Any person or organization that,
16 with respect to any procurement or with respect to proposals submitted
17 to an authority, engages in lobbying and any person or organization that
18 retains, employs or designates any person or organization to carry on
19 lobbying activities on behalf of such person or organization shall be
20 subject to the provisions of article one-A of the legislative law.
21 2. Every person or organization subject to the provisions of article
22 one-A of the legislative law or this section as a lobbyist or client
23 because of acts relating to procurements or proposals to the authority
24 shall, in addition to filing one or more statements of registration and
25 reports with the New York temporary commission on lobbying as required
26 by article one-A of the legislative law, file a copy of each such docu-
27 ment required to be filed under said article with the authority.
28 3. The central procurement office as defined in article one-D of this
29 chapter shall receive and file documents required to be filed under
30 subdivision two of this section. The authority shall catalogue such
31 filings by the name of the lobbyist, the name of the client, and by the
32 contract whom the lobbyist has attempted to influence action on behalf
33 of the client. The authority shall make information furnished by lobby-
34 ists and clients available to the public for inspection and copying in
35 electronic and paper formats. Access to such information shall also be
36 made available for remote computer users through the internet network.
37 4. No client shall retain or employ any lobbyist for compensation, the
38 rate or amount of which compensation in whole or part is contingent or
39 dependent upon the acceptance of or decision regarding any proposal or
40 procurement contract by an authority. The methodology by which compen-
41 sation is determined must be included in the reports required by this
43 § 5. Article 9 of the public authorities law is amended by adding a
44 new title 5-A to read as follows:
45 TITLE 5-A
46 DISPOSITION OF PROPERTY BY AUTHORITIES
47 Section 2895. Definitions.
48 2896. Duties of authorities with respect to the disposal of
50 2897. Disposal of authority property.
51 2898. Contract approval by the comptroller.
52 § 2895. Definitions. For the purposes of this title, unless a differ-
53 ent meaning is required by the context:
54 1. "Administrator" shall mean the officer or employee of an authority
55 who shall be appointed by act of the board of the authority to be
56 responsible for the disposition of property.
A. 3 15
1 2. "Authority" shall mean any authority or other public benefit corpo-
2 ration, established by law, whether in this chapter or otherwise, a
3 majority of the governing board of which is required to be appointed by
4 the governor, and every subsidiary or other related corporation, direct
5 or indirect and at any level of organization, of any such authority,
6 whether or not such subsidiary or other related corporation is a public
7 benefit corporation.
8 3. "Dispose" or "disposal" shall mean transfer of title or any other
9 interest in personal or real property in accordance with section twen-
10 ty-eight hundred ninety-seven of this title.
11 4. "Property" shall mean personal property, real estate or both or any
12 interest in such property and shall include, without limitation, any
13 interest in real estate in which an authority holds the fee simple
14 interest, to the extent that such interest may be conveyed to another
15 person for any purpose.
16 § 2896. Duties of authorities with respect to the disposal of proper-
17 ty. 1. No authority shall in any way dispose of any property of the
18 authority unless such property has been listed on a report prepared in
19 accordance with subdivision three of this section, provided, however,
20 that personal property with a fair market value of less than fifteen
21 thousand dollars may be sold at auction without having been listed on
22 such a report if such item of personal property is reported in the next
23 report made pursuant to subdivision three of this section.
24 2. Each authority shall:
25 a. maintain adequate inventory controls and accountability systems for
26 all property under its control;
27 b. continuously survey such property to determine which property shall
28 be disposed of;
29 c. produce a written report of such property in accordance with subdi-
30 vision three of this section;
31 d. perform the care and handling of such property; and
32 e. transfer or dispose of such property as promptly as possible in
33 accordance with section twenty-eight hundred ninety-seven of this title.
34 3. a. Each authority shall publish, not less frequently than quarter-
35 ly, a report listing all property of the authority that the authority
36 intends to dispose of. Such report shall consist of a list of all such
37 property held by the authority at the end of the period covered by the
38 report, and all such property disposed of during such period. The report
39 shall contain an estimate of fair market value for all such property
40 held by the authority at the end of the period and the price received by
41 the authority and the name of the purchaser for all such property sold
42 by the authority during such period. Low value personal property may be
43 listed in suitable groups or lots. Such report shall contain or be
44 accompanied by a listing and description of any negotiated disposals of
45 property having an estimated fair market value of more than fifteen
46 thousand dollars, in the case of real property, or five thousand
47 dollars, in the case of any other property, other than disposals for
48 which an explanatory statement has been transmitted under paragraph d of
49 subdivision six of section twenty-eight hundred ninety-seven of this
51 b. The authority shall deliver copies of such report to the director
52 of the budget, the commissioner of general services, and the chairs of
53 any senate and assembly committees who shall have requested copies of
54 such reports.
55 § 2897. Disposal of authority property. 1. Supervision and direction.
56 Except as otherwise provided in this section, the administrator of each
A. 3 16
1 authority shall have supervision and direction over the disposition of
2 property of such authority. Such property shall be disposed of to such
3 extent, at such time, in such areas, at such terms and conditions, and
4 in such manner, as may be prescribed in or pursuant to this section.
5 2. Care and handling. The care and handling of such property, pending
6 its disposition, and the disposal of such property, shall be performed
7 by the authority in possession thereof or by the commissioner of general
8 services when so authorized under this section.
9 3. Method of disposition. Subject to section twenty-eight hundred
10 ninety-six of this title, any authority may dispose of property for not
11 less than the fair market value of such property by sale, exchange,
12 lease, permit, or transfer, for cash, credit, or other property, with or
13 without warranty, and upon such other terms and conditions as the admin-
14 istrator deems proper, and it may execute such documents for the trans-
15 fer of title or other interest in property and take such other action as
16 it deems necessary or proper to dispose of such property under the
17 provisions of this section. Provided, however, that no sale of real
18 property, any interest in real property, or any other property which
19 because of its unique nature is not subject to normal market pricing
20 shall be made unless an appraisal of the value of such property has been
21 made and included in the record of the transaction.
22 4. Sales by the commissioner of general services. When it shall be
23 deemed advantageous to the state, any authority may enter into an agree-
24 ment with the commissioner of general services whereby such commissioner
25 may dispose of property of such authority under terms and conditions
26 agreed to by the authority and such commissioner. In disposing of any
27 such property of an authority, such commissioner shall be bound by the
28 terms of this title and references to the administrator shall be deemed
29 to refer to such commissioner.
30 5. Validity of deed, bill of sale, lease, or other instrument.
31 Subject to section twenty-eight hundred ninety-eight of this title, a
32 deed, bill of sale, lease, or other instrument executed by or on behalf
33 of any authority purporting to transfer title or any other interest in
34 property of an authority under this title shall be conclusive evidence
35 of compliance with the provisions of this title insofar as concerns
36 title or other interest of any bona fide grantee or transferee for value
37 and without notice of lack of such compliance.
38 6. Bids for disposal; advertising; procedure; disposal by negotiation;
39 explanatory statement. a. All disposals or contracts for disposal of
40 property of an authority made or authorized by the administrator shall
41 be made after publicly advertising for bids except as provided in para-
42 graph c of this subdivision.
43 b. Whenever public advertising for bids is required under paragraph a
44 of this subdivision:
45 (i) the advertisement for bids shall be made at such time previous to
46 the disposal or contract, through such methods, and on such terms and
47 conditions as shall permit that full and free competition which is
48 consistent with the value and nature of the property involved;
49 (ii) all bids shall be publicly disclosed at the time and place stated
50 in the advertisement; and
51 (iii) the award shall be made with reasonable promptness by notice to
52 the responsible bidder whose bid, conforming to the invitation for bids,
53 will be most advantageous to the state, price and other factors consid-
54 ered; provided, that all bids may be rejected when it is in the public
55 interest to do so.
A. 3 17
1 c. Disposals and contracts for disposal may be negotiated without
2 regard to paragraphs a and b of this subdivision but subject to obtain-
3 ing such competition as is feasible under the circumstances, if:
4 (i) the personal property involved is of a nature and quantity which,
5 if disposed of under paragraphs a and b of this subdivision, would
6 adversely affect the state or local market for such goods, and the esti-
7 mated fair market value of such property and other satisfactory terms of
8 disposal can be obtained by negotiation;
9 (ii) the estimated fair market value of the property involved does not
10 exceed fifteen thousand dollars;
11 (iii) bid prices after advertising therefor are not reasonable, either
12 as to all or some part of the property, or have not been independently
13 arrived at in open competition;
14 (iv) with respect to real property only, the character or condition of
15 the property, the nature of the interest to be conveyed or other unusual
16 circumstances make it impractical to advertise publicly for competitive
17 bids, and the fair market value of the property and other satisfactory
18 terms of disposal can be obtained by negotiation;
19 (v) the disposal will be to the state, any municipality or political
20 subdivisions thereof, or tax-supported agencies therein, and the esti-
21 mated fair market value of the property and other satisfactory terms of
22 disposal are obtained by negotiation; or
23 (vi) such action is otherwise authorized by law.
24 d. (i) An explanatory statement shall be prepared of the circumstances
25 of each disposal by negotiation of:
26 (A) any personal property which has an estimated fair market value in
27 excess of fifteen thousand dollars;
28 (B) any real property that has an estimated fair market value in
29 excess of one hundred thousand dollars, except that any real property
30 disposed of by lease or exchange shall only be subject to clauses (C)
31 through (E) of this subparagraph;
32 (C) any real property disposed of by lease for a term of five years or
33 less, if the estimated fair annual rent is in excess of one hundred
34 thousand dollars for any of such years;
35 (D) any real property disposed of by lease for a term of more than
36 five years, if the total estimated rent over the term of the lease is in
37 excess of one hundred thousand dollars; or
38 (E) any real property or real and related personal property disposed
39 of by exchange, regardless of value, or any property any part of the
40 consideration for which is real property.
41 (ii) Each such statement shall be transmitted to the persons entitled
42 to receive copies of the report required under section twenty-eight
43 hundred ninety-six of this title not less than ninety days in advance of
44 such disposal, and a copy thereof shall be preserved in the files of the
45 authority making such disposal.
46 § 2898. Contract approval by the comptroller. 1. Before any contract
47 of sale made for or by any authority shall be executed or become effec-
48 tive, whenever such contract exceeds fifteen thousand dollars in amount,
49 it shall first be approved by the comptroller and filed in his or her
50 office, provided, however, that the comptroller shall make a final writ-
51 ten determination with respect to approval of such contract within nine-
52 ty days of the submission of such contract to his or her office unless
53 the comptroller shall notify, in writing, the authority prior to the
54 expiration of the ninety day period, and for good cause, of the need for
55 an extension of not more than fifteen days, or a reasonable period of
56 time agreed to by such authority and provided, further, that such writ-
A. 3 18
1 ten determination or extension shall be made part of the record of the
3 2. A contract or other instrument wherein any authority agrees to
4 accept as consideration for any sale of property anything other than the
5 payment of money, when the value or reasonably estimated value of such
6 consideration exceeds fifteen thousand dollars, shall not become a valid
7 enforceable contract unless such contract or other instrument shall
8 first be approved by the comptroller and filed in his office.
9 § 6. The state finance law is amended by adding two new sections 99-m
10 and 99-n to read as follows:
11 § 99-m. Public authorities independent budget office revenue account.
12 1. There is hereby established in the joint custody of the comptroller
13 and the commissioner of taxation and finance an account in the miscella-
14 neous special revenue fund to be known as the "public authorities inde-
15 pendent budget office revenue account."
16 2. Such account shall consist of all revenues resulting from payments
17 made by public authorities and other public benefit corporations pursu-
18 ant to section fifty-eight of the public authorities law.
19 3. Moneys of such account, following appropriation by the legislature,
20 shall be available for funding the operations of the public authorities
21 independent budget office established by section fifty-eight of the
22 public authorities law.
23 § 99-n. Public authorities inspector general's office revenue account.
24 1. There is hereby established in the joint custody of the comptroller
25 and the commissioner of taxation and finance an account in the miscella-
26 neous special revenue fund to be known as the "public authorities
27 inspector general's office revenue account."
28 2. Such account shall consist of all revenues resulting from payments
29 made by public authorities and other public benefit corporations pursu-
30 ant to section fifty-six of the public authorities law.
31 3. Moneys of such account, following appropriation by the legislature,
32 shall be available for funding the operations of the public authorities
33 inspector general's office established by section fifty-five of the
34 public authorities law.
35 § 7. Paragraphs (c) and (d) of subdivision 1 of section 169 of the
36 executive law, paragraph (c) as amended by chapter 634 of the laws of
37 1998 and paragraph (d) as amended by chapter 83 of the laws of 1995, are
38 amended to read as follows:
39 (c) commissioner of agriculture and markets, commissioner of alcohol-
40 ism and substance abuse services, adjutant general, commissioner and
41 president of state civil service commission, commissioner of economic
42 development, chair of the energy research and development authority,
43 executive director of the board of real property services, president of
44 higher education services corporation, commissioner of motor vehicles,
45 member-chair of board of parole, director of probation and correctional
46 alternatives, chair of public employment relations board, secretary of
47 state, chair of the state racing and wagering board, commissioner of
48 alcoholism and substance abuse services, executive director of the hous-
49 ing finance agency, commissioner of housing and community renewal, exec-
50 utive director of state insurance fund, commissioner-chair of state
51 liquor authority, chair of the workers' compensation board, public
52 authorities inspector general;
53 (d) director of office for the aging, commissioner of human rights,
54 executive director of the state board of elections, commissioners of the
55 department of public service, chairman of state commission on quality of
56 care for the mentally disabled, chairman of commission on alcoholism and
A. 3 19
1 substance abuse prevention and education, executive director of the
2 council on the arts [and], executive director of the board of social
3 welfare and public authorities independent budget officer;
4 § 8. (a) Notwithstanding the provisions of any other law, unless soon-
5 er terminated, the term of office of any person serving as inspector
6 general of the metropolitan transportation authority under section 1279
7 of the public authorities law, as added by chapter 427 of the laws of
8 1983, shall end on the sixtieth day after the date on which this act
9 shall become effective.
10 (b) Notwithstanding the provisions of any other law, as of the sixti-
11 eth day after the date on which this act shall become effective, no
12 person appointed to serve as inspector general of government agencies
13 and public authorities pursuant to executive order No. 39 dated June 1,
14 1996, or any other legal authority shall act as inspector general for
15 any public authority, and no deputy inspector general designated to and
16 deemed employed by any one or more public authorities under any execu-
17 tive order shall act as inspector general for any such public authority.
18 For all purposes, after such date, no person shall have authority to act
19 as inspector general for any public authority created under the public
20 authorities law or any other law, except the inspector general estab-
21 lished under this act and persons acting on his or her behalf.
22 (c) Any person serving as an inspector general, deputy inspector
23 general, or person on the staff of an inspector general for any public
24 authority on the effective date of this act shall cooperate with the
25 inspector general appointed under this act for the purpose of making a
26 smooth transition of functions, to preserve records and files, and to
27 continue pending inquiries and investigations.
28 (d) All records, including but not limited to documents, notes,
29 evidence, testimony, memoranda, or other information whether on paper,
30 in photographs or photographic form, in audio or video recordings, in
31 any mode of electronic recording or otherwise preserved, collected by
32 any person acting as or on behalf of an inspector general, deputy
33 inspector general, or person on the staff of an inspector general, which
34 were collected in connection with any matter relating to a public
35 authority, shall be preserved and maintained, and promptly turned over
36 to the inspector general appointed pursuant to this act together with
37 any index system or other means of locating items or information within
38 the entire data base.
39 (e) From and after the effective date of this act, it shall be unlaw-
40 ful to destroy any records of the types referred to in paragraph (d) of
41 this section collected in connection with any inquiry or investigation
42 of any inspector general of a public authority, unless authorized by the
43 inspector general appointed under this act. Any person who shall know-
44 ingly destroy any such records shall be guilty of a misdemeanor, and the
45 destruction of each such record shall constitute a separate offense. At
46 the request of the inspector general appointed under this act, each
47 inspector general, deputy inspector general, and other staff members
48 shall provide an affidavit or deposition under the penalties of perjury
49 as to whether or not such person destroyed any records during the sixty
50 days prior to the effective date of this act, whether such persons have
51 any knowledge as to the destruction of any such records during such
52 period, and the details of any such destruction.
53 § 9. This act shall take effect immediately.