A 173 New York Assembly · 2025 Regular Session

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

This bill modifies New York's not-for-profit corporation law to clarify transparency requirements for nonprofits formed "on behalf of" or "at the behest of" government entities (like municipalities, state agencies, or districts). It requires incorporators to disclose government ties in filing documents and mandates that certain nonprofits obtain approval from the Authorities Budget Office before establishing board structures where government officials hold significant influence. Nonprofits created for government purposes must also follow specific contract rules with local governments, including limits on contract terms and requirements for fair compensation. These changes apply directly to local development corporations and similar entities operating under government direction, ensuring greater public oversight of their governance and financial arrangements.
Tags: Government Transparency
Bill status passed both 4 of 5 stages cleared
Introduction
Jan 2025
Committee Review
Mar 2026
Assembly Passage
Mar 2026
Senate Passage
Jun 2026
Governor
Introduced Jan 8, 2025 Last action Jun 1, 2026
Maddy AI version diff · 1 comparison

What changed between versions

A173 → A173A · 3 edits
MINOR
This bill was amended to add a new co-sponsor and accelerate its legislative progress by ordering it to a third reading. The substantive policy content regarding local development corporations remains unchanged, though minor text corrections were made to clarify lease terms and notice requirements.
Scope change
The bill's scope and applicability remain unchanged; the amendment only affects the bill's procedural status and sponsor list.
TECHNICAL

Added co-sponsor Alvarez to the list of bill sponsors.

Corrected the lease term limit from ninety-nine years to twenty-five years and updated notice publication requirements to include current estimated fair market value.

TIMELINE

Ordered the bill to a third reading, which moves it closer to becoming law.

Floor votes · Senate Jun 1, 2026 · Assembly Mar 31, 2026

How they voted

37–23
Passed · 3 other
Total votes 63
Jun 1, 2026
D Democratic41
36 Yea 2 Nay 3
87% Yea
R Republican22
1 Yea 21 Nay
95% Nay
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
17
Key actions
2
Committee
5
Amendments
1
Jun 1, 2026
Senate · Passed
PASSED SENATE
Mar 31, 2026
Senate · Referred to committee
REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
Mar 31, 2026
Assembly · Passed
PASSED ASSEMBLY
Mar 11, 2026
Assembly · Amendment adopted
AMENDED ON THIRD READING 173A
May 27, 2025
Assembly · Referred to committee
REPORTED REFERRED TO RULES
Mar 4, 2025
Assembly · Referred to committee
REPORTED REFERRED TO WAYS AND MEANS
Feb 24, 2025
Assembly · Referred to committee
REPORTED REFERRED TO CODES
Jan 8, 2025
Assembly · Referred to committee
REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
1 primary · 4 co-sponsors

Sponsors