New York State Faces Difficulty in Enforcing Disclosure Law

Two years ago, New York State passed a law requiring board members of nonprofit organizations “affiliated with, sponsored by or created by a county, city, town or village government” to begin filing lengthy annual financial disclosure forms.  It appears, however, that several nonprofit organizations in New York City — organizations the New York State Legislature intended to be covered by the legislation — are not filing the lengthy forms.  According to a report appearing in today’s New York Times, New York City has interpreted the legislation to mean that these nonprofits are not sufficiently affiliated with “a county, city, town or village government.” 

According to the Times report, Richard L. Brodsky, chair of the New York State Assembly’s Committee on Corporations, Authorities and Commissions (which had a hand in developing the law), yesterday announced that he would hold a hearing on compliance with the law in coming weeks.  Mr. Brodsky maintains that the “king of wiggling around” currently taking place “is not acceptable.”  He continued:

If people want to argue that we’ve captured the wrong kind of organizations, we’re going to listen very carefully.  But we’re not going to accept wild gyrations that turn words on their heads.

Meanwhile, Assemblyman James F. Brennan, a Brooklyn Democrat who chairs the chamber’s Committee on Cities, said it was possible that the legislature had erred in giving New York City too much leeway in interpreting the law. “In some instances they appear to have not undertaken to enforce these laws against some people because they have so much discretion,” he said. Maybe, he said, it is time to “go back to the drawing board.”

It looks like an interesting fight is brewing in New York!

VEJ