S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5690
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                     May 28, 2015
                                      ___________
       Introduced by Sen. MARCHIONE -- (at request of the State Comptroller) --
         read  twice  and  ordered printed, and when printed to be committed to
         the Committee on Local Government
       AN ACT to amend the general municipal law, in relation to audits by  the
         state  comptroller  of  certain  organizations controlled by municipal
         corporations and certain other government entities
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.    Section  34 of the general municipal law, as amended by
    2  chapter 233 of the laws of 2006, is amended to read as follows:
    3    S 34. Powers and duties of examiners.  1.  The  comptroller  and  each
    4  examiner  of  municipal  affairs  shall  have  power to examine into the
    5  financial affairs of every such municipal corporation, industrial devel-
    6  opment agency, district, [fire company as defined in section two hundred
    7  four-a of this chapter,] agency and activity [and], ANY FIRE COMPANY  AS
    8  DEFINED  IN  SECTION  TWO  HUNDRED FOUR-A OF THIS CHAPTER, AND ANY OTHER
    9  ORGANIZATION, EXCEPT A STATEWIDE ASSOCIATION  OF  LOCAL  GOVERNMENTS  OR
   10  LOCAL  GOVERNMENT  OFFICIALS,  THAT  IS CONTROLLED BY ONE OR MORE OF ANY
   11  SUCH MUNICIPAL CORPORATIONS, INDUSTRIAL DEVELOPMENT AGENCIES,  DISTRICTS
   12  OR  AGENCIES.   AN ORGANIZATION SHALL BE DEEMED UNDER THE CONTROL OF ONE
   13  OR  MORE  MUNICIPAL  CORPORATIONS,  INDUSTRIAL   DEVELOPMENT   AGENCIES,
   14  DISTRICTS OR AGENCIES WHEN ONE OR MORE INDIVIDUALS WHO SERVE AS OFFICERS
   15  OR  EMPLOYEES  OF ANY SUCH MUNICIPAL CORPORATION, INDUSTRIAL DEVELOPMENT
   16  AGENCY, DISTRICT OR AGENCY: (A) SELECT EITHER A MAJORITY OF  THE  ORGAN-
   17  IZATION'S  HIGHEST POLICY-MAKING BODY OR THE ORGANIZATION'S CHIEF EXECU-
   18  TIVE OFFICER; (B) CONSTITUTE A MAJORITY  OF  THE  VOTING  STRENGTH  THAT
   19  SELECTS  EITHER  A  MAJORITY OF THE ORGANIZATION'S HIGHEST POLICY-MAKING
   20  BODY OR THE ORGANIZATION'S CHIEF EXECUTIVE OFFICER;  OR  (C)  SERVE  AS:
   21  (I) A MAJORITY OF THE ORGANIZATION'S HIGHEST POLICY-MAKING BODY; (II) IN
   22  HIS  OR  HER OFFICIAL CAPACITY, THE ORGANIZATION'S CHIEF EXECUTIVE OFFI-
   23  CER; OR (III) IN HIS OR HER OFFICIAL CAPACITY, A PARTNER IN  THE  ORGAN-
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD02340-02-5
       S. 5690                             2
    1  IZATION.  AN  ORGANIZATION  UNDER  THE  CONTROL OF ONE OR MORE MUNICIPAL
    2  CORPORATIONS, INDUSTRIAL DEVELOPMENT  AGENCIES,  DISTRICTS  OR  AGENCIES
    3  SHALL  ALSO  INCLUDE  ANY  OTHER ORGANIZATION THAT IS CONTROLLED BY SUCH
    4  ORGANIZATION.
    5    2. IN CONNECTION WITH ANY EXAMINATION AUTHORIZED BY SUBDIVISION ONE OF
    6  THIS  SECTION,  THE  COMPTROLLER  AND EACH EXAMINER OF MUNICIPAL AFFAIRS
    7  SHALL HAVE POWER to administer an oath to any person whose testimony may
    8  be required, and to compel the appearance and attendance of such  person
    9  for  the  purpose  of  any  such  examination and investigation, and the
   10  production of books and papers. In the case of a municipal  corporation,
   11  industrial  development agency, or school district, no such person shall
   12  be compelled to appear or be examined elsewhere than within such munici-
   13  pal corporation, industrial development agency, or school  district.  In
   14  the  case  of  any district other than a school district, no such person
   15  may be compelled to appear or be examined elsewhere than within the town
   16  or one of the towns  in  which  such  district  or  portion  thereof  is
   17  located. In the case of an urban renewal agency, no such person shall be
   18  compelled  to  appear  or  be examined outside the municipal corporation
   19  wherein such agency is established. In the case of a  fire  company,  no
   20  such person shall be compelled to appear or be examined outside the area
   21  served  by the company. In the case of an activity, no such person shall
   22  be compelled to appear outside the area served by the activity.  IN  THE
   23  CASE  OF  AN  ORGANIZATION  UNDER  THE  CONTROL OF ONE OR MORE MUNICIPAL
   24  CORPORATIONS, INDUSTRIAL DEVELOPMENT AGENCIES, DISTRICTS OR AGENCIES, NO
   25  SUCH PERSON SHALL BE COMPELLED TO APPEAR OR TO BE EXAMINED  OUTSIDE  THE
   26  COUNTY IN WHICH THE ORGANIZATION HAS ITS PRINCIPAL HEADQUARTERS. Willful
   27  false swearing in such examination shall be perjury and shall be punish-
   28  able as such.
   29    3. FOR PURPOSES OF THIS SECTION, THE TERM "A MAJORITY OF THE ORGANIZA-
   30  TION'S  HIGHEST  POLICY-MAKING  BODY" SHALL MEAN A MAJORITY OF THE WHOLE
   31  NUMBER OF POSITIONS COMPRISING SUCH BODY, PROVIDED, HOWEVER, THAT IF THE
   32  DOCUMENTS ESTABLISHING THE ORGANIZATION'S INTERNAL GOVERNANCE ALLOW SUCH
   33  BODY TO ACT BY A MAJORITY OF A QUORUM,  THEN  SUCH  TERM  SHALL  MEAN  A
   34  MAJORITY OF THE QUORUM.
   35    S 2. This act shall take effect immediately.