Relates to the applicability of open meetings and freedom of information laws to certain not-for-profit corporations

Showing the cosponsors who are on Agora, A to Z. The official record may list more.

• Democratic5

Shown in neutral colors by design; Agora is non-partisan.

◆ The sponsor's argument

Why James Skoufis says this is needed

Local development corporations (LDCs), as well as other types of not-for profit corporations like Health Research Incorporated, are often used by governments as a means to indirectly finance government operations and projects. These LDCs and similar private entities, however, are exempt from many of the constitutional and statutory provisions that guide the operations and financial transactions conducted by local governments, despite how, as a practical matter, they often function as an instrument and subsidiary of local government. While such organizations mostly do great work in developing their local economies and serve an essential quasi-governmental role, reports from the Authorities Budget Office, the State Comptroller, and good govern- ment groups have exposed that LDCs and other non-profits are too frequently used solely to circumvent these constitutional and statutory restrictions that apply to projects directly undertaken by a local government, as well as to circumvent transparency and public scrutiny laws through such entities status as private organizations. This lack of transparency, accountability, and restraint has significantly wasted taxpayer dollars and public resources. When organizations rely on taxpayer resources to operate, they should be subject to strong oversight and be held accountable. With such entities holding presently around $20 billion in outstanding debt, New York's taxpayers deserve far more accountability and responsibility for how their money is being spent and leveraged by such entities. To protect the interests of the taxpayer, our localities, and the state, this bill seeks to subject these LDCS and other similar not-for-profits to greater governmental accountability and public transparency, as well as to reign in some of their more problematic activities. LEGISLATIVE HISTORY: Senate 2021: S4339B, Amend and Recommit to Corporations, Authorities, and Commissions 2022: S4339B, Passed Senate 2023: S2727B, Passed Senate 2024: S2727B, Passed Senate Assembly 2021: A4575B, Amend and Recommit to Rules 2022: A4575B, Ordered to Third Reading 2023: A3715C, Ordered to Third Reading Rules 2024: A3715C, Referred to Ways and Means

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.