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Bill No.: Summary Actions Committee&nbspVotes Floor&nbspVotes Memo Text LFIN Chamber&nbspVideo/Transcript S04576 Summary: BILL NO S04576A &nbsp SAME AS SAME AS A08570

&nbsp SPONSOR SKOUFIS &nbsp COSPNSR &nbsp MLTSPNSR &nbsp Amd §4, UDC Act &nbsp Establishes a procedure for appointing a president or chairperson upon a vacancy of such position.

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STATE OF NEW YORK ________________________________________________________________________

4576--A Cal. No. 600

2025-2026 Regular Sessions

IN SENATE

February 7, 2025 ___________

Introduced by Sen. SKOUFIS -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading

AN ACT to amend the New York state urban development corporation act, in relation to establishing a procedure for appointing a president or chairperson upon a vacancy of such position and correcting certain gendered language

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

1 Section 1. Section 4 of section 1 of chapter 174 of the laws of 1968, 2 constituting the New York state urban development corporation act, 3 subdivisions 1, 1-a and 3 as amended by chapter 280 of the laws of 1984 4 and as further amended by section 104 of part A of chapter 62 of the 5 laws of 2011, subdivision 2 as amended by chapter 55 of the laws of 6 1992, subdivision 3-a as added by chapter 61 of the laws of 1975, and 7 subdivisions 7 and 8 as amended by chapter 823 of the laws of 2022, is 8 amended to read as follows: 9 § 4. New York state urban development corporation. (1) There is hereby 10 created the New York state urban development corporation. The corpo- 11 ration shall be a corporate governmental agency of the state, constitut- 12 ing a political subdivision and public benefit corporation. Its member- 13 ship shall consist of nine directors as follows: the superintendent of 14 financial services, the [ chairman ] chairperson of the New York state 15 science and technology foundation, and seven directors to be appointed 16 by the governor with the advice and consent of the senate. From the 17 seven directors appointed by [ him ] the governor , the governor shall 18 designate the [ chairman ] chairperson of the corporation and two others 19 who shall all serve at the pleasure of the governor. Of the four remain- 20 ing directors, one of such directors first appointed by the governor

EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08763-02-5

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1 after the effective date of this subdivision as amended shall serve for 2 a term ending January first next succeeding [ his ] such appointment, one 3 of such directors shall serve for a term ending one year from such date, 4 one of such directors shall serve for a term ending two years from such 5 date, and one of such directors shall serve for a term ending three 6 years from such date. Their successors shall serve for terms of four 7 years each. Directors shall continue in office until their successors 8 have been appointed and qualified. In the event of a vacancy occurring 9 in the office of a director by death, resignation or otherwise, the 10 governor shall appoint a successor with the advice and consent of the 11 senate to serve for the balance of the unexpired term. The governor 12 shall appoint the president of the corporation, with the advice and 13 consent of the senate, who shall be the chief executive officer of the 14 corporation and who shall serve at the pleasure of the governor. Such 15 president may be one of the directors appointed by the governor. In the 16 event of a vacancy occurring in the office of the president or the 17 chairperson by death, resignation or otherwise, the governor shall 18 appoint a successor with the advice and consent of the senate to serve 19 for the balance of the unexpired term. The governor may designate an 20 acting president or chairperson for a period not to exceed six months or 21 until a successor has been confirmed by the senate, whichever comes 22 first. 23 (1-a) The superintendent of financial services and the [ chairman ] 24 chairperson of the New York state science and technology foundation each 25 may designate a person from [ his ] their department to represent [ him ] 26 them at all meetings of the corporation from which such director may be 27 absent. Any representative so designated shall have the power to attend 28 and to vote at any meeting of the corporation from which the director so 29 designating [ him ] them is absent, with the same force and effect as if 30 the director designating [ him ] them were present and voting. Such desig- 31 nation shall be by written notice filed with the [ chairman ] chairperson 32 of the corporation by the director making the designation. The desig- 33 nation of each such person shall continue until revoked at any time by 34 written notice to the [ chairman ] chairperson by the director making the 35 designation. Such designation shall not limit the power of the director 36 making the designation to attend and vote in person at any meeting of 37 the corporation. 38 (2) The directors, other than the [ chairman ] chairperson , shall serve 39 without salary or other compensation, but each director, including the 40 [ chairman ] chairperson , shall be entitled to reimbursement for actual 41 and necessary expenses incurred in the performance of [ his or her ] their 42 official duties. Anything to the contrary contained herein notwithstand- 43 ing, the president of the corporation, whether or not [ he or she ] such 44 president is a director, and the [ chairman ] chairperson if [ he or she ] 45 such chairperson is not the president shall be entitled to receive such 46 salary as the directors may determine for their services as chief execu- 47 tive officer and [ chairman ] chairperson respectively. 48 (3) Such directors other than the superintendent of financial 49 services, the [ chairman ] chairperson of the New York state science and 50 technology foundation, and any director who serves as president of the 51 corporation may engage in private employment, or in a profession or 52 business. The corporation, its directors, officers and employees shall 53 be subject to the provisions of sections seventy-three and seventy-four 54 of the public officers law. 55 (3-a) The state shall save harmless and indemnify any person who shall 56 have served as a director, officer or employee of the corporation

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1 against financial loss or litigation expense arising in connection with 2 any claim, demand, suit or judgment, or the defense thereof, based on a 3 cause of action, whenever accrued, involving allegations that pecuniary 4 harm was sustained by any person as a result of any transaction of the 5 corporation taking place on or after the effective date of the New York 6 state project finance agency act. In the event any such claim, demand, 7 suit or judgment shall occur, a director, officer or employee of the 8 corporation shall be saved harmless and indemnified by the state under 9 this subdivision unless such individual is found by a final judicial 10 determination not to have acted in good faith, for a purpose which [ he ] 11 they reasonably believed to be in the best interests of the corporation 12 or not to have had reasonable cause to believe that [ his ] their conduct 13 was lawful. In any suit described in the first sentence of this subdi- 14 vision, any director, officer or employee made a party defendant to such 15 suit shall be entitled to be represented by private counsel of [ his ] 16 their choice; provided, however, that the attorney general is author- 17 ized, as a condition to indemnification of the fees and expenses of such 18 representation, to require that appropriate groups of such individuals 19 be represented by the same counsel; and provided further, that with the 20 approval of the attorney general or of a court (obtained by application 21 substantially as provided in section seven hundred twenty-five of the 22 business corporation law), indemnification for such fees and expenses 23 shall be paid from time to time during the pendency of such suit. The 24 provisions of this subdivision shall be in addition to and shall not 25 supplant any indemnification or other benefits heretofore or hereafter 26 conferred upon directors, officers and employees of the corporation by 27 section seventeen of the public officers law, by action of the corpo- 28 ration, or otherwise. The provisions of this subdivision shall inure 29 only to directors, officers and employees of the corporation, shall not 30 enlarge or diminish the rights of any other party, and shall not impair, 31 limit or modify the rights and obligations of any insurer under any 32 policy of insurance. 33 (4) The directors of the corporation shall serve ex officio as direc- 34 tors of the corporation for urban development and research of New York, 35 created by the New York state urban development and research corporation 36 act, and of the urban development guarantee fund of New York, created by 37 the urban development guarantee fund of New York act. The [ chairman ] 38 chairperson of the corporation shall serve as [ chairman ] chairperson of 39 the corporation for urban development and research of New York and of 40 the urban development guarantee fund of New York. 41 (5) Notwithstanding any inconsistent provisions of law, general, 42 special or local, no officer or employee of the state or of any civil 43 division thereof, shall be deemed to have forfeited or shall forfeit 44 [ his ] their office or employment by reason of [ his ] their acceptance of 45 membership on the corporation created by this section; provided, howev- 46 er, a director who holds such other public office or employment shall 47 receive no additional compensation or allowance for services rendered 48 pursuant to this act, but shall be entitled to reimbursement for [ his ] 49 their actual and necessary expenses incurred in the performance of such 50 services. 51 (6) The governor shall appoint a business advisory council for urban 52 development, to advise and make recommendations to the corporation with 53 respect to development policies and programs and to encourage maximum 54 participation in projects of the corporation by the private sector of 55 the economy, including members of the council and firms and corporations 56 with which they are [ affliated ] affiliated . Such council shall consist

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1 of not more than twenty-five members, who shall serve at the pleasure of 2 the governor, and who shall be broadly representative of commerce and 3 industry, the financial community and the construction and housing 4 industries. Such members shall serve without salary, but shall be enti- 5 tled to reimbursement for their actual and necessary expenses incurred 6 in the performance of their duties. 7 (7) The corporation shall establish one or more community advisory 8 committees to consider and advise the corporation upon matters submitted 9 to them by the corporation concerning the development of any area or any 10 project, and may establish rules and regulations with respect to such 11 committees. The corporation or its successor shall publish and maintain 12 a list of all community advisory committee members, and community advi- 13 sory committee meeting agendas, materials, and minutes on its website. 14 Meeting agendas and materials shall be posted on such website at least 15 one business day in advance of community advisory committee meetings. 16 All upcoming meeting times and locations shall be posted on such website 17 at least one week in advance. Community advisory committee meetings 18 shall be accessible for the public to view and attend live. The members 19 of such community advisory committees shall serve, at the pleasure of 20 the corporation, without salary, but shall be entitled to reimbursement 21 for their actual and necessary expenses incurred in the performance of 22 their duties. Notwithstanding any inconsistent provision of law, gener- 23 al, special or local, no officer or employee of the state or of any 24 civil division thereof, shall be deemed to have forfeited or shall 25 forfeit [ his or her ] their office or employment by reason of [ his or 26 her ] their acceptance of membership on such community advisory commit- 27 tee. 28 (8) The governor may remove any director appointed by [ him or her ] 29 them for inefficiency, neglect of duty or misconduct in office after 30 giving [ him or her ] such director a copy of the charges against [ him or 31 her ] them , and an opportunity to be heard, in person or by counsel, in 32 [ his or her ] their defense, upon not less than ten days' notice. If any 33 such director shall be removed, the governor shall file in the office of 34 the department of state a complete statement of charges made against 35 such director and [ his or her ] the governor's findings thereon, together 36 with a complete record of the proceeding. The foregoing provisions shall 37 not apply in the case of the chairperson and any other director who 38 serves at the pleasure of the governor. 39 (9) The corporation and its corporate existence shall continue until 40 terminated by law, provided, however, that no such law shall take effect 41 so long as the corporation shall have bonds, notes and other obligations 42 outstanding, unless adequate provision has been made for the payment 43 thereof in the documents securing the same. Upon termination of the 44 existence of the corporation, all its rights and properties shall pass 45 to and be vested in the state. 46 (10) A majority of the directors of the corporation then in office 47 shall constitute a quorum for the transaction of any business or the 48 exercise of any power or function of the corporation, except as other- 49 wise provided in subdivision two of section sixteen[ , subdivision two, 50 hereof ] of this act . The corporation may delegate to one or more of its 51 directors, or its officers, agents and employees, such powers and duties 52 as it may deem proper. 53 (11) The corporation shall take affirmative action in working with 54 construction firms, contractors and subcontractors, labor unions and 55 manufacturing and industrial firms, to the end that residents of areas 56 in which projects are to be located shall be afforded participation in

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1 the construction work on projects of the corporation, and in the busi- 2 ness operations of tenants and occupants of industrial projects under- 3 taken by the corporation. 4 § 2. This act shall take effect immediately.

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