BILL NUMBER: S2317A
SPONSOR: SKOUFIS
 
TITLE OF BILL:
An act to amend the general municipal law and the public authorities
law, in relation to preventing certain elected officials from being a
member of an agency or industrial development authority; and to repeal
subdivision 4 of section 856 of the general municipal law relating ther-
eto
 
PURPOSE:
The bill would prohibit any elected official from serving at the county,
town, city, or village level from serving as a member of the board of
any industrial development agency (IDA) located within the county. This
reform would eliminate major potential conflicts of interest in the
current law.
 
SUMMARY OF PROVISIONS:
Section 1: Repeals the existing subdivision 4 of section 856 of the
general municipal law, which deals with elected officials serving as
members of IDA boards and replace it with a new subdivision 4 that
prohibits any elected official serving at the county, town, city, or
village level from serving as a member of the board of any industrial
development agency (IDA) located within the county. Any IDA board member
who would now be ineligible to serve may serve until the expiration of
his or her term as a member of the IDA, at which time new board members
must be selected using the existing process established by each IDA. The
enabling legislation for certain county and municipal IDAs, specifically
requires certain elected positions to be represented on the IDA's board.
This bill would not apply to any elected officials required by the terms
of the enabling legislation for a particular IDA to serve on the board
of that IDA.
Section 2: Amends section 1952 of the public authorities law to prohibit
any elected official serving at the county, town, city, or village level
from serving as a member of the Troy IDA board.
Section 3: Amends Section 2304 of the public authorities law to prohibit
any elected official serving at the county, town, city, or village level
from serving as a member of the Auburn IDA board.
Section 4: Sets effective date.
 
JUSTIFICATION:
Each year, local industrial development agencies grant millions of
dollars of financial assistance through tax incentives, payment in lieu
of taxes (PILOT) agreements, and others to projects seeking assistance.
The members of IDA boards decide which projects will receive assistance
and how much to offer. Allowing elected officials to serve as IDA board
members opens obvious opportunities for corruption and conflicts of
interest. For instance, a company(or its officers) seeking financial
assistance from a county or municipal IDA could contribute to the
campaign of an elected official who serves on the IDA board. That
elected official could vote to confer millions of dollars in taxpayer
incentives on the company. Despite this clear potential for corruption,
elected officials currently serve on IDA boards all around the state,
making this bill a vitally needed anti-corruption measure.
 
LEGISLATIVE RISTORY: Senate
2019: S4678A, Referred to Local Government
2020: S4678A, Amend and Recommit to Local Government
2021: S1769, Passed Senate
2022: S1769, Passed Senate
2023: S1716, Passed Senate
2024: S1716, Passed Senate
Assembly
2019: No Assembly Same-As
2020: No Assembly Same-As
2021: A1308A, Amend and Recommit to Local Governments
2022: A1308A, Referred to Local Governments
2023: A255, Referred to Local Governments
2024: A255, Referred to Local Governments
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S2317: 856 general municipal law, 856(4) general municipal law
S2317A: 856 general municipal law, 856(4) general municipal law, 1952 public authorities law, 2304 public authorities law