September 26, 2006
9 NYCRR 4.173
N.Y. Comp. Codes R. & Regs. tit. 9, § 4.173
Section 4.173 Executive Order No. 173: Establishing public authorities accountability.
WHEREAS, pursuant to the State Constitution, every public authority and every public benefit corporation is created by a Special Act of the State Legislature to serve the public interest;
WHEREAS, each public
authority and public benefit corporation is empowered to perform various
functions pursuant to its enabling statute, including the power to sue and be
sued, to have a seal and alter it, to make contracts, to adopt by-laws, to
borrow money and to acquire and dispose of real property;
WHEREAS, although public
authorities and public benefit corporations enjoy financial, jurisdictional and
administrative flexibility not generally available to the State's agencies, it
is the policy of the State of New York to ensure that activities of our public
authorities are consistent with the policies and practices of the State;
WHEREAS, it is also necessary
to insure that each public authority carries out its operations in a prudent and
responsible manner and is accountable to the public;
NOW, THEREFORE, I, MARIO M. CUOMO, Governor of the State of New York, by virtue of the authority vested in me by the Constitution and Laws of the State of New York, do hereby direct as follows:
1. "Public authority" shall include every public authority and/or public benefit corporation created pursuant to the New York State law, at least half whose board members are appointed by the Governor or who serve as members by virtue of holding a civil office of the State, or a combination thereof (such entities, as so constituted, shall hereafter be referred to as "public authorities" or "authorities" ).
2. "Division of the Budget" or "Division" shall mean the New York State Division of the Budget in the Executive Department.
3. "Office of Employee Relations" shall mean the Governor's Office of Employee Relations in the Executive Department.
II. Responsibilities of Public Authorities:
Each public authority shall:
1. Provide the Division of the Budget such information concerning administrative policies and procedures as may be requested from time to time. Each authority shall be expected to achieve reasonable consistency with the general administrative policies and practices in effect for State agencies;
2. In accordance with section 2801 of the Public Authorities Law, provide the Division of the Budget, acting on behalf of the Governor, budget information on operations and multi-year capital construction plans, for comment by the division. These plans shall set forth the estimated receipts and expenditures for the next fiscal year and the current fiscal year, and the actual receipts and expenditures for the last completed fiscal year and shall be submitted not less than 60 days before the commencement of the authority's fiscal year;
3. File with the Division of the Budget and the Department of Economic Development a copy of the comprehensive guidelines prepared in accordance with section 2879 of the Public Authorities Law including the authority's policy and practices for the use, awarding, monitoring and reporting on practices for selecting bond counsels, financial advisors, underwriters, consultants and other procurement contracts and practice including policies on encouragement of participation of Women and Minority Owned Business Enterprises;
4. Submit copies of salary, compensation and travel guidelines for all authority personnel to the Division of the Budget and the Office of Employee Relations for comment prior to adoption by the Board of Directors;
5. File a copy of each bond resolution or bond indenture in force for the authority. Submit a draft of each preliminary official statement for a bond or note sale to the Division of the Budget at least five days prior to its release, accompanied by a written statement of all provisions in bond or note documents that would restrict or inhibit the authority's flexibility to provide assistance financial or otherwise to the State or that obligates or restricts the State in any manner;
6. Consult with the Office of Employee Relations regarding current and anticipated collective negotiations with the authority's employee representatives so that executed agreements are consistent or where inconsistent, so that the inconsistent provisions can be documented and their cost defined;
7. Agree to the establishment of an Inspector General, Internal Auditor or other person capable of carrying out similar functions and duties or provide reasons in writing why it would not be appropriate; and
8. Consult with the Division of the Budget where the authority believes that one or more provisions of this Executive Order would constitute a tangible and direct impairment of such authority's statute or agreements with bondholders.
III. Responsibilities of the Division of the Budget:
1. From time to time, examine the management, organization, operations and financing of one or more public authorities and report to the Governor on recommendations for improvement; and
2. Make generally available to each public authority information on State administrative procedures and policies, for information purposes, to assist authorities in meeting the requirements of this Executive Order.
IV. Responsibilities of The Office of Employee Relations:
1. Make available to each public authority information regarding State collective negotiations, negotiating policy, and the provisions of executed agreements to assist each authority in meeting the requirements of this Executive Order.
V. Responsibilities of The Executive Chamber:
1. Coordinate the development of an orientation program for new board appointees to ensure that member responsibilities and major program policies of the Governor are clearly communicated and understood; and
2. Facilitate the development of an annual forum or series of structured meetings between authority board members and senior staff from the Executive to communicate the Governor's policies and programs, identify major management and operational issues and identify goals for the next fiscal year.
VI. Reports to the Governor:
1. On or before November 1, 1993, the Division of the Budget shall report to the Governor on progress in implementing the Executive Order and any legislative changes that may be required to implement the intent of this Executive Order including recommendations to improve consistency in debt issuance policies of the State and the authorities.
2. On or before December 31, 1994 and annually thereafter, the Division of the Budget and the Office of Employee Relations shall report to the Governor on progress in implementing this Executive Order and other recommendations for changes.
Signed: Mario M. Cuomo
Dated: July 28, 1993