Governor Cuomo Signs Legislation Giving the Authorities Budget Office the Power to Suspend Local Authority Board Members and Executive Staff for Failure to Submit Annual Reports

Statement

Governor Andrew M. Cuomo today signed legislation (S.1872/A.220) giving the Authorities Budget Office the power to suspend local authority board members or executive staff for failure to submit any report required by public authorities law section 2800. Previously, the ABO was only permitted to make recommendations and issue public censure letters to delinquent local authorities.

"Local public authorities are responsible for some of the state's most essential services and infrastructure - from transportation to energy to water - and it's critical that they follow the law and fulfill their responsibilities to the public," Governor Cuomo said. "With this new measure, we will be able to better hold these local authorities accountable and ensure New Yorkers are getting the top-of-the-line services they pay for."

Specifically, the bill empowers the ABO to suspend local authority board members and executive staff including CEOs who have failed to file the annual reports, as required under the Public Authorities Law, if the reports are more than three years late of the filing due date. The reports are due 90 days after the end of the authority's fiscal year. The Office is also empowered to terminate a suspension where the entity has remedied their non-compliance.

The bill addresses the need for transparency from entities that receive public funds and fail or refuse to disclose how they use the funds despite taking taxpayer dollars. Some ABO designated local authorities have gone years without filing reports, and gaps in the ABO's enforcement powers have prevented them from being able to hold these delinquent groups accountable. As of July 1, there are 54 local authorities in total that are delinquent for the Annual Report for over three years. Additionally, there are 120 local authorities that are currently delinquent for the Annual Report.

Senator Leroy Comrie said, "Public authorities can be opaque entities. When Senate Leader Stewart-Cousins appointed me Chair of the Corporations, Authorities & Commissions Committee earlier this year, my goal was to work with my colleagues to ensure that they would operate in a more transparent, effective and accountable manner. Senate Bill 1872 will - for the first time - empower the New York State Authorities Budget Office to have proactive and meaningful oversight over New York's 860 local authorities, ensuring that they comply with important reporting and disclosure provisions, or face the consequence of suspensions. This important accountability measure wisely puts the public interest first in the phrase 'public authority reform'. I commend Governor Cuomo for recognizing this need and signing this legislation into law."

Assembly Member Amy Paulin said, "This law will close the gap in the Authorities Budget Office's enforcement powers and reassure the public that authority board members and CEOs can be held directly accountable for long-term violations of their filing requirements. Although most delinquent authorities are only a few months behind and quickly get right with the state, some substantially delinquent authorities have skipped their filings for years, knowing that they can do so with minimal or no consequences. Those days are over."

The bill, which provides due process for the named authority, would empower the ABO to provide more effective and judicious oversight. Previously, the Authorities Budget Office was only authorized to make recommendations and issue a public censure letter. The ABO have would have a new means of ensuring that local authorities and economic development agencies comply with financial disclosure requirements. "This will be another arrow in our quiver for enforcement," said ABO Director Jeff Pearlman.

Upon enactment, authorities would receive a notice of the ABO's intent to suspend individuals and they would have 30 days to come into compliance. There is also a mechanism that would allow for reinstatement of a public authority's board members.

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