Bill Text: NY A06780 | 2021-2022 | General Assembly | Introduced


Bill Title: Relates to establishing the lump sum allocation advisory committee (Part A); relates to requiring transparency, identification and disclosure of certain appropriations (Part B); relates to withholding the salaries of the governor, agency commissioners and deputy commissioners for failing to meet certain reporting deadlines (Part C); relates to creating a tax rate reduction board to look at personal income tax and corporate franchise tax rates (Part D); relates to conducting an audit of all state economic development programs (Part E); relates to prohibiting certain political contributions by individuals appointed to entities that oversee lump sum appropriations (Part F); relates to prohibiting certain third party contracts (Part G).

Spectrum: Partisan Bill (Republican 29-0)

Status: (Introduced - Dead) 2022-06-01 - held for consideration in ways and means [A06780 Detail]

Download: New_York-2021-A06780-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          6780

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                      April 8, 2021
                                       ___________

        Introduced  by  M.  of  A.  BARCLAY, BLANKENBUSH, J. M. GIGLIO, GOODELL,
          HAWLEY, McDONOUGH, MONTESANO, RA, FRIEND, B. MILLER, WALSH,  BRABENEC,
          ASHBY,  SMITH,  MIKULIN,  NORRIS,  TAGUE, MORINELLO, MANKTELOW, SALKA,
          BYRNES, WALCZYK, SIMPSON, LAWLER, LEMONDES,  DeSTEFANO,  M. MILLER  --
          Multi-Sponsored  by  --  M.  of A. BROWN, FITZPATRICK -- read once and
          referred to the Committee on Ways and Means

        AN ACT to amend the state finance law, in relation to  establishing  the
          lump  sum  allocation  advisory committee (Part A); to amend the state
          finance law, in relation to requiring transparency, identification and
          disclosure of certain appropriations (Part B); to amend the  executive
          law,  in  relation to withholding the salaries of the governor, agency
          commissioners and deputy commissioners for  failing  to  meet  certain
          reporting  deadlines  (Part  C);  to amend the tax law, in relation to
          creating a tax rate reduction board to look at personal income tax and
          corporate franchise tax rates (Part D); to amend the economic develop-
          ment law, in relation to conducting an audit  of  all  state  economic
          development  programs  (Part  E); to amend the public officers law and
          the  election  law,  in  relation  to  prohibiting  certain  political
          contributions  by  individuals appointed to entities that oversee lump
          sum appropriations (Part F); and to amend the public authorities  law,
          in relation to prohibiting certain third party contracts (Part G)

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Legislative findings and intent. It  is  the  duty  of  the
     2  state  government  to  be responsible, open and transparent about how it
     3  spends the taxpayer's hard earned money. With  billions  of  dollars  of
     4  lump  sum  appropriations  included  in the state budget that include no
     5  details on who receives the money, or even which  elected  official  has
     6  control  over  the appropriation, and with continued delays in releasing
     7  reports by state agencies on the effectiveness of related programs,  the
     8  government  has  failed  to  live up to its responsibility. Often times,

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02967-01-1

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     1  this  failure  goes  even  deeper,  as  individuals  and  entities  have
     2  personally  benefited  from the lack of accountability and transparency.
     3  Therefore, the legislature finds it necessary to create a lump sum allo-
     4  cation  advisory committee, require greater transparency related to lump
     5  sum appropriations, implement penalties for certain state  agencies  and
     6  entities that fail to release timely reports, prohibit certain political
     7  contributions  by  appointees and conduct studies on how to simplify the
     8  current tax system and economic development environment  to  ensure  the
     9  current system that creates winners and losers is changed. By implement-
    10  ing  these  policies,  the  state  government  can  begin  to repair the
    11  complete breakdown of trust over how it allocates taxpayer money.
    12    § 2. This act enacts into law major components of legislation  provid-
    13  ing  for  the  creation  of  a  lump  sum allocation advisory committee,
    14  requiring greater  transparency  related  to  lump  sum  appropriations,
    15  implementing penalties for certain state agencies and entities that fail
    16  to  release  timely reports, prohibiting certain political contributions
    17  by appointees and conducting studies on how to simplify the current  tax
    18  system and economic development environment to ensure the current system
    19  that  creates  winners  and  losers is changed. Each component is wholly
    20  contained within a Part identified as Parts A through G.  The  effective
    21  date  for  each  particular  provision contained within such Part is set
    22  forth in the last section of such Part. Any  provision  in  any  section
    23  contained within a Part, including the effective date of the Part, which
    24  makes reference to a section "of this act", when used in connection with
    25  that  particular  component,  shall  be  deemed to mean and refer to the
    26  corresponding section of the Part in which it is found. Section four  of
    27  this act sets forth the general effective date of this act.

    28                                   PART A

    29    Section  1.  The  state finance law is amended by adding a new section
    30  49-a to read as follows:
    31    § 49-a. Lump sum allocation advisory committee. 1.    Definitions.  As
    32  used in this section, the following terms shall have the following mean-
    33  ings:
    34    (a)  "committee" shall mean the lump sum allocation advisory committee
    35  as established by subdivision two of this section;
    36    (b) "lump sum appropriation" shall mean an item of appropriation  with
    37  a  single related object or purpose, the purpose of which is to fund one
    38  or more grantees by a means other than a statutorily prescribed  formula
    39  or  an allocation pursuant to subdivision five of section twenty-four of
    40  this chapter; and
    41    (c) "grantee" shall have the same meaning as subdivision twenty-two of
    42  section two of this chapter.
    43    2. Establishment. There is hereby established the lump sum  allocation
    44  advisory committee consisting of the director of the division of budget,
    45  the comptroller and the attorney general.
    46    3.  Powers and duties. The committee shall have the power and duty to:
    47  (a) review all requests for allocations from a  lump  sum  appropriation
    48  where a grantee is not identified;
    49    (b)  request  and receive, and shall utilize and be provided with such
    50  facilities, resources and  data  of  any  court,  department,  division,
    51  board, bureau, commission, agency subsidiary or subdivision of the state
    52  or  any  political  subdivision  thereof,  or of any public authority or
    53  public benefit corporation, as it may reasonably request  to  carry  out
    54  its powers and duties pursuant to this subdivision;

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     1    (c)  review  and  examine financial and personal relationships between
     2  any potential grantee and the entity requesting the allocation to deter-
     3  mine if a conflict of interest exists;
     4    (d) examine the top qualified entities for allocations from a lump sum
     5  appropriation that are allocated through a competitive process to deter-
     6  mine if a conflict of interest exists;
     7    (e)  deny any allocation from a lump sum appropriation to a grantee if
     8  the committee determines a conflict of interest exists; and
     9    (f) approve  any  allocation  from  a  lump  sum  appropriation  after
    10  completing a full and thorough review of such allocation.
    11    4.  Allocation. No monies from a lump sum appropriation shall be allo-
    12  cated unless unanimously approved by the committee.
    13    § 2. This act shall take effect immediately.

    14                                   PART B

    15    Section 1. Subdivisions 4 and 5 of section 24  of  the  state  finance
    16  law,  as  added  by chapter 1 of the laws of 2007, are amended and a new
    17  subdivision 5-a is added to read as follows:
    18    4. Any appropriation submitted by the governor, when  practicable,  or
    19  added to such budget bills, pursuant to section four of article seven of
    20  the constitution, shall only contain itemized appropriations which shall
    21  not be in the form of lump sum appropriations, and provided further that
    22  for  all non-federal state operations appropriations, such bill or bills
    23  shall only contain itemized appropriations  and  shall  be  made,  where
    24  practicable,  by  agency,  and  within each agency by program and within
    25  each program at the following level  of  detail  and  in  the  following
    26  order:
    27    (a)  by  fund  type,  which  at  a minimum shall include general fund,
    28  special revenue-other funds, capital projects  funds  and  debt  service
    29  funds;
    30    (b) for personal service appropriations, separate appropriations shall
    31  be  made  for  regular personal service, temporary personal service, and
    32  holiday and overtime pay;
    33    (c) for nonpersonal service  appropriations,  separate  appropriations
    34  shall  be made for supplies and materials, travel, contractual services,
    35  equipment and fringe benefits, as appropriate; and
    36    (d) at the request or discretion of the governor or a  member  of  the
    37  legislature,  such  appropriation shall include the name of the governor
    38  or member of the legislature that requested such appropriation.
    39    5. Any appropriation submitted by the governor, or added  pursuant  to
    40  section  four of article seven of the constitution without designating a
    41  grantee shall be allocated only pursuant to  a  plan  setting  forth  an
    42  itemized list of grantees with the amount to be received by each, or the
    43  methodology  for  allocating  such  appropriation.  Such  plan  shall be
    44  subject to the approval of the chair of the  senate  finance  committee,
    45  the  chair of the assembly ways and means committee, and the director of
    46  the budget, and thereafter shall be included in a concurrent  resolution
    47  calling  for  the  expenditure  of such monies, which resolution must be
    48  approved by a majority vote of all members elected to each house upon  a
    49  roll call vote.
    50    5-a.  Any  appropriation  submitted  by  the governor or added to such
    51  budget bills, pursuant to section four of article seven of the constitu-
    52  tion, or allocation from a lump sum appropriation shall  be  subject  to
    53  the following:

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     1    (a)  the  governor or member of the legislature requesting such appro-
     2  priation or allocation from a lump sum appropriation shall  be  required
     3  to submit a signed conflict of interest form and submit such form to the
     4  lump  sum  allocation  advisory  committee  as  established  pursuant to
     5  section  forty-nine-a  of  this  chapter  to  ensure that no conflict of
     6  interest exists; the lump sum allocation advisory committee shall desig-
     7  nate the form and content of the conflict of interest form. The governor
     8  or member of the legislature shall disclose on the conflict of  interest
     9  form  all  political donations he or she is receiving or has received in
    10  the past from the intended recipient of  the  appropriation  funding  or
    11  allocation  from  a  lump sum appropriation. Such a conflict of interest
    12  form shall be signed by the governor or member of the legislature  under
    13  penalty of perjury;
    14    (b)  an  appropriation  provided  at the discretion of the governor or
    15  member of the legislature or an allocation from a lump sum appropriation
    16  shall not be provided if the  lump  sum  allocation  advisory  committee
    17  declares  a conflict of interest exists between the governor or a member
    18  of the legislature designating the appropriation or  allocation  from  a
    19  lump  sum  appropriation  and the potential recipient.   These appropri-
    20  ations and allocations from lump sum appropriations cannot fund an indi-
    21  vidual or entity that employs or otherwise compensates the  governor  or
    22  member  of  the legislature, governor's family or member of the legisla-
    23  tor's family, any person sharing the home of the governor or  member  of
    24  the  legislature or the governor's or a member of the legislator's staff
    25  for services or labor rendered.  Furthermore, the governor or members of
    26  the legislature shall not  designate  appropriations  or  request  allo-
    27  cations  from  a lump sum appropriation if the governor or member of the
    28  legislature, a member of the governor's or member  of  the  legislator's
    29  family,  any  person  sharing  the home of the governor or member of the
    30  legislature or a member of the governor's or member of the  legislator's
    31  staff  is  involved  with  the operations of the organization in a deci-
    32  sion-making capacity including but not limited to working on an  unpaid,
    33  volunteer  basis  or  as a member of the directing board of an organiza-
    34  tion; and
    35    (c) an appropriation provided at the discretion  of  the  governor  or
    36  member of the legislature or an allocation from a lump sum appropriation
    37  shall  not  be provided to any individual or entity who made a political
    38  donation within the past year to the governor or member of the  legisla-
    39  ture  requesting  the appropriation or allocation from a lump sum appro-
    40  priation until the political donation is refunded to the  individual  or
    41  entity.
    42    § 2. This act shall take effect immediately.

    43                                   PART C

    44    Section  1. The executive law is amended by adding a new section 33 to
    45  read as follows:
    46    § 33. Lump sum appropriation reporting; enforcement. 1.  Notwithstand-
    47  ing any law to the contrary, the comptroller is directed to withhold the
    48  salaries of the governor, agency commissioners and deputy  commissioners
    49  when  economic development state agencies, subsidiaries and authorities,
    50  and/or any state entity required to issue a report related to a lump sum
    51  appropriation fails to meet statutorily required reporting deadlines.
    52    2. For purposes of this section "economic development state  agencies,
    53  subsidiaries  and authorities" shall include, but are not limited to the
    54  department of economic development, empire state development corporation

        A. 6780                             5

     1  and all of its subsidiaries, the department of taxation and finance, and
     2  the dormitory authority of the state of New York and its subsidiaries.
     3    3.  The  comptroller  shall  withhold the salaries of the governor and
     4  offending agency  commissioners  and  deputy  commissioners  until  such
     5  required  reports,  as described in subdivision one of this section, are
     6  issued.
     7    4. Agencies may receive an extension to submit a required  report,  as
     8  described  in subdivision one of this section, if requested and approved
     9  by all legislative conference leaders.
    10    § 2. This act shall take effect immediately.

    11                                   PART D

    12    Section 1. The tax law is amended by adding a  new  section  171-q  to
    13  read as follows:
    14    §  171-q.  Tax rate reduction board; personal and corporate tax study.
    15  (1) (a) The commissioner shall contract  with  a  nationally  recognized
    16  entity  to  conduct a study to examine the corresponding personal income
    17  tax brackets and dollar amounts that could be enacted if a proportionate
    18  reduction in the personal income  tax  bracket  and  dollar  amounts  as
    19  provided  in  section  six hundred one of this chapter for taxable years
    20  beginning after two thousand thirteen and before  two  thousand  twenty-
    21  three  and for taxable years beginning after two thousand twenty-two, if
    22  all of the personal income tax credits provided in section  six  hundred
    23  six  of  this  chapter  were eliminated and personal income tax receipts
    24  were forecasted to be revenue neutral based on current law.
    25    (b) The commissioner shall contract with a nationally recognized enti-
    26  ty to conduct a study to examine  the  corresponding  reduction  in  the
    27  imposition  of  the  corporate  franchise tax that could be enacted if a
    28  proportionate reduction in the imposition of the corporate franchise tax
    29  as provided by sections two hundred nine and two  hundred  ten  of  this
    30  chapter,  if  all  the  credits provided in section two hundred ten-B of
    31  this chapter were eliminated and the corporate  franchise  tax  receipts
    32  were forecasted to be revenue neutral based on current law.
    33    (2)  There is hereby established a tax rate reduction board consisting
    34  of four members. One representative shall be appointed from each of  the
    35  following:
    36    (a) the speaker of the assembly;
    37    (b) the minority leader of the assembly;
    38    (c) the temporary president of the senate; and
    39    (d) the minority leader of the senate.
    40    (3) The tax rate reduction board shall:
    41    (a)   approve  the  selection  of  the  nationally  recognized  entity
    42  described in subdivision one of this section, priority for  such  entity
    43  shall be given to firms that are not current vendors doing business with
    44  the state;
    45    (b)  oversee  the required reports described in paragraphs (a) and (b)
    46  of subdivision one of this section; and
    47    (c) assist in the determination of areas of inquiry  for,  review  the
    48  progress of, and evaluate the results of such required reports.
    49    (4)  Such  board,  in consultation with the commissioner shall oversee
    50  the analysis of the contracting entity and issue a report to the  gover-
    51  nor,  the  speaker of the assembly, the minority leader of the assembly,
    52  the temporary president of the senate and the  minority  leader  of  the
    53  senate detailing the results of such studies described in paragraphs (a)

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     1  and  (b)  of  subdivision  one of this section within one year after the
     2  effective date of this section.
     3    § 2. This act shall take effect immediately.

     4                                   PART E

     5    Section  1.  The  economic  development law is amended by adding a new
     6  section 107 to read as follows:
     7    § 107. Economic development audit board. 1. The comptroller in coordi-
     8  nation with the  commissioner  and  the  commissioner  of  taxation  and
     9  finance shall contract with a nationally recognized entity to conduct an
    10  audit  of  all  state  economic development programs.   Such audit shall
    11  include, but not be limited to:
    12    (a) identifying all programs by type and funding source;
    13    (b) identifying the types of businesses that have  received  financial
    14  assistance;
    15    (c)  reviewing  information available on job creation or other data on
    16  economic expansion;
    17    (d) analyzing the  geographic  distribution  of  financial  assistance
    18  throughout the state;
    19    (e)  reviewing  a sample of loans and grants to determine if statutory
    20  requirements for the programs were followed;
    21    (f) reviewing information available on economic  development  programs
    22  in other states; and
    23    (g) any other information deemed necessary by the comptroller in coor-
    24  dination  with  the  commissioner  and  the commissioner of taxation and
    25  finance.
    26    2. There is hereby established an  economic  development  audit  board
    27  consisting  of  four members. One representative shall be appointed from
    28  each of the following:
    29    (a) the speaker of the assembly;
    30    (b) the minority leader of the assembly;
    31    (c) the temporary president of the senate; and
    32    (d) the minority leader of the senate.
    33    3. The economic development board shall:
    34    (a)  approve  the  selection  of  the  nationally  recognized   entity
    35  described  in  subdivision one of this section, priority for such entity
    36  shall be given to firms that are not current vendors doing business with
    37  the state;
    38    (b) oversee the required reports described in subdivision five of this
    39  section; and
    40    (c) assist in the determination of areas of inquiry  for,  review  the
    41  progress of, and evaluate the results of such required reports.
    42    4. The economic development audit board in consultation with the comp-
    43  troller,  the commissioner, and the commissioner of taxation and finance
    44  shall develop all necessary rules and regulations to conduct an audit of
    45  economic development programs pursuant to this  section.  Following  the
    46  review  and audit of such economic development programs, the board shall
    47  recommend all  necessary  changes  to  make  such  economic  development
    48  programs more transparent, streamlined, and to ensure that such programs
    49  are  meeting  the  goals of the laws that established them and providing
    50  for a return on investment to the state. The results of this audit shall
    51  be filed with the governor, the temporary president of the  senate,  the
    52  minority  leader  of  the  senate,  the  speaker of the assembly and the
    53  minority leader of the assembly and made  available  for  public  review
    54  online.

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     1    5.  After  the conclusion of the audit, the board in consultation with
     2  the comptroller, the commissioner and the commissioner of  taxation  and
     3  finance  shall  study the feasibility of reducing the number of economic
     4  development programs currently offered by the state and its subsidiaries
     5  and replacing these programs with one centralized competitive program. A
     6  report  of  the  study,  outlining  the  impact of such consolidation of
     7  programs shall be posted online for public review  and  filed  with  the
     8  governor,  the temporary president of the senate, the minority leader of
     9  the senate, the speaker of the assembly and the minority leader  of  the
    10  assembly within one year after the effective date of this section.
    11    § 2. This act shall take effect immediately.

    12                                   PART F

    13    Section 1. Paragraph (c) of subdivision 17 of section 73 of the public
    14  officers  law, as added by chapter 14 of the laws of 2007, is amended to
    15  read as follows:
    16    (c) (i) No state officer or employee shall,  directly  or  indirectly,
    17  use  his  or  her official authority to compel or induce any other state
    18  officer or employee to make or promise to make  any  political  contrib-
    19  ution, whether by gift of money, service or other thing of value.
    20    (ii)  No  officer,  appointed by one or more state officers, or by the
    21  legislature, including but not limited to appointees  to  a  commission,
    22  board, council or panel, charged with the distribution of state lump sum
    23  appropriations,  as  defined by subdivision twenty-one of section two of
    24  the state finance law, shall not make  any  political  contributions  to
    25  such  appointing  authority.  This  contribution  prohibition shall also
    26  apply to anyone residing in the appointee's household including, but not
    27  limited to, a spouse, domestic partner and/or child.  Such  contribution
    28  prohibition shall be for the term of one year prior to, one year follow-
    29  ing,  and  during the term of his or her appointment. When an individual
    30  is appointed to  such  a  position,  the  appointee  must  identify  any
    31  contributions  made  to  the  appointing  authority,  and the appointing
    32  authority must refund the entire contribution made within  the  previous
    33  twelve-month period.
    34    §  2.  The  election  law is amended by adding a new section 14-133 to
    35  read as follows:
    36    § 14-133. Contributions by appointed  party  officers.  Any  appointed
    37  party  officer, including but not limited to appointees to a commission,
    38  board, council or panel charged with the distribution of state lump  sum
    39  appropriations,  as  defined by subdivision twenty-one of section two of
    40  the state finance law, shall not make  any  political  contributions  to
    41  such  appointing  authority.  This  contribution  prohibition shall also
    42  apply to anyone residing in the appointee's household including, but not
    43  limited to, a spouse, domestic partner and/or child.  Such  contribution
    44  prohibition shall be for the term of one year prior to, one year follow-
    45  ing,  and  during the term of his or her appointment. When an individual
    46  is appointed to  such  a  position,  the  appointee  must  identify  any
    47  contributions  made  to  the  appointing  authority,  and the appointing
    48  authority must refund the entire contribution made within  the  previous
    49  twelve-month period.
    50    § 3. This act shall take effect immediately.

    51                                   PART G

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     1    Section  1.  The  public  authorities  law  is amended by adding a new
     2  section 2882 to read as follows:
     3    §  2882.  Third-party  contracting  prohibited.  1. No state authority
     4  shall enter into a contract or agreement or extend an existing  contract
     5  or  agreement  with  another entity, unless authorized by special act of
     6  the legislature, (i) where the exclusive or primary role of such  entity
     7  under  the  contract or agreement is to procure goods or services of any
     8  kind, including, but not limited to, public work,  construction,  alter-
     9  ations,  or  improvements to public facilities, grant contracts, employ-
    10  ment  contracts,  revenue  or  concession  contracts,  the  exchange  of
    11  personal  or real property, the exchange of services, or any combination
    12  thereof through a contract or agreement with  a  third  party  and  (ii)
    13  where  such entity is acting as a procurement conduit, rather than being
    14  directly responsible for the goods or services.
    15    2. The comptroller may promulgate such rules and regulations as may be
    16  necessary to enforce this section, including the standards for determin-
    17  ing whether a contract is prohibited by this section.
    18    § 2. This act  shall  take  effect  immediately  and  shall  apply  to
    19  contracts entered into on and after such date.
    20    § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
    21  sion,  section  or  part  of  this act shall be adjudged by any court of
    22  competent jurisdiction to be invalid, such judgment  shall  not  affect,
    23  impair,  or  invalidate  the remainder thereof, but shall be confined in
    24  its operation to the clause, sentence, paragraph,  subdivision,  section
    25  or part thereof directly involved in the controversy in which such judg-
    26  ment shall have been rendered. It is hereby declared to be the intent of
    27  the  legislature  that  this  act  would  have been enacted even if such
    28  invalid provisions had not been included herein.
    29    § 4. This act shall take effect immediately  provided,  however,  that
    30  the  applicable effective date of Parts A through G of this act shall be
    31  as specifically set forth in the last section of such Parts.
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