S T A T E   O F   N E W   Y O R K
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                                  7738

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              May 31, 2013
                               ___________

Introduced  by  M. of A. FARRELL -- (at request of the Governor) -- read
  once and referred to the Committee on Ways and Means

AN ACT to amend the state finance law, the local  finance  law  and  the
  civil  service  law,  in relation to the financial restructuring board
  for local governments and providing  for  the  expiration  of  certain
  provisions of the civil service law

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph t of subdivision 10 of section 54  of  the  state
finance  law,  as added by section 3 of part K of chapter 57 of the laws
of 2011 and as relettered by section 3 of part K of chapter  55  of  the
laws of 2013, and subparagraph (vii) as added and subparagraph (viii) as
renumbered  by  section 3-a of part K of chapter 55 of the laws of 2013,
is amended to read as follows:
  t. Local government performance and efficiency program.  (i) (1) Defi-
nitions.  For the purposes of this  [paragraph]  SUBPARAGRAPH,  "munici-
pality"  shall  mean  a  county,  city,  town, or village, but shall not
include the individual counties contained in the city of New York.
  [(ii)] (2) Purpose. [There is hereby established  a  local  government
performance  and  efficiency  program.]  The  purpose  of [this program]
AWARDS MADE PURSUANT TO THIS SUBPARAGRAPH is to recognize municipalities
that have undertaken significant and innovative actions to  improve  the
overall  efficiency  of governmental operations and produce quantifiable
recurring financial savings that reduce  the  municipal  tax  burden  on
residents.
  [(iii)]  (3)  Eligibility.  All  municipalities  in New York state are
eligible to apply individually or jointly, provided however that  if  an
action  was  undertaken  jointly,  municipalities must apply jointly for
such an action. The actions for which they apply must already have  been
implemented.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12027-02-3

              

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  [(iv)]  (4)  Use  of awards. Awards received [pursuant to the program]
shall be used by municipalities for general municipal purposes.
  [(v)]  (5) Application. The secretary of state shall develop an appli-
cation for municipalities seeking to receive awards  and  a  process  by
which the applications will be evaluated. Such application shall require
municipalities to demonstrate how the action for which they have applied
has resulted in quantifiable recurring savings, efficiencies, and perma-
nent  improvements  to  municipal  services.  The secretary of state may
focus the [program] AWARDS in  specific  functional  service  areas,  in
which case such areas of focus shall be detailed in a request for appli-
cations.  No  application shall be considered for actions that commenced
prior to January first, two thousand ten.
  [(vi)] (6) Awards.  The secretary of state may make awards  to  appli-
cants  based  on  factors  including,  but not limited to, the amount of
current and future savings, the impact of such action upon the municipal
property tax levy, the size and complexity of the action, and the abili-
ty for the action to be replicated by other municipalities. Awards shall
only be made to municipalities for actions that have been  fully  imple-
mented,  that clearly resulted in quantifiable savings and efficiencies,
and that produced permanent and quantifiable improvements  to  municipal
efficiency or services. The maximum amount awarded per application shall
not exceed the lesser of five million dollars or twenty-five dollars per
resident  of  the  applying municipalities as of the most recent federal
decennial census, provided, however, that if the boundaries  of  munici-
palities  jointly  applying  for  such funding overlap, the residents in
overlapping areas shall only be counted  once,  and  provided,  further,
that  if  a  county  jointly  applies with some but not all of the other
municipalities therein, only the residents in such other  municipalities
shall be counted.
  [(vii)]  (7)  Written  notice  shall  be provided to an applicant of a
decision regarding the grant or denial of an award under this paragraph,
within thirty days after such decision.
  [(viii)] (8) Regulation. The secretary of state shall,  prior  to  the
establishment  of  applications, promulgate rules and regulations on the
[program] AWARDS, including but not limited to award eligibility  crite-
ria and application, review and approval procedures.
  (II)(1)  DEFINITIONS. FOR THE PURPOSES OF THIS SUBPARAGRAPH, "FISCALLY
DISTRESSED MUNICIPALITY"  SHALL  HAVE  THE  SAME  MEANING  AS  "FISCALLY
DISTRESSED  MUNICIPALITY"  AS  DEFINED  BY  SECTION  160.05 OF THE LOCAL
FINANCE LAW. FOR THE PURPOSES OF THIS SUBPARAGRAPH, "FINANCIAL  RESTRUC-
TURING  BOARD FOR LOCAL GOVERNMENTS" OR "BOARD" SHALL MEAN THE FINANCIAL
RESTRUCTURING BOARD FOR  LOCAL  GOVERNMENTS  AS  AUTHORIZED  BY  SECTION
160.05 OF THE LOCAL FINANCE LAW.
  (2)  IN  ADDITION  TO AWARDS MADE PURSUANT TO SUBPARAGRAPH (I) OF THIS
PARAGRAPH, THE BOARD MAY AWARD FUNDING TO  FISCALLY  DISTRESSED  MUNICI-
PALITIES FOR FINANCIAL RESTRUCTURING AND RELATED PURPOSES, AS DETERMINED
BY  THE  BOARD.  THIS  FUNDING  MAY BE STRUCTURED AS A LOAN, A GRANT, OR
COMBINATION THEREOF. THE AMOUNT OF SUCH FUNDING  TO  BE  PROVIDED  TO  A
FISCALLY  DISTRESSED  MUNICIPALITY,  THE  STRUCTURE OF SUCH FUNDING, ANY
CONDITIONS TO BE PLACED  ON  A  FISCALLY  DISTRESSED  MUNICIPALITY  THAT
ACCEPTS  SUCH FUNDING, AND ANY OTHER ASPECTS OF FUNDING AWARDED PURSUANT
TO THIS SUBPARAGRAPH SHALL BE DETERMINED BY AN  AFFIRMATIVE  VOTE  OF  A
MAJORITY  OF THE TOTAL NUMBER OF MEMBERS OF THE BOARD AND MAY DIFFER FOR
EACH AWARD OF FUNDING.   SUCH LOANS SHALL NOT  BE  BOUND  BY  THE  LOCAL
FINANCE  LAW  WITH RESPECT TO TERMS AND REPAYMENT LIMITATIONS.  FURTHER,
ANY SUCH LOANS SHALL NOT BE CONSIDERED DEBT FOR PURPOSES OF  CALCULATING

A. 7738                             3

CONSTITUTIONAL  LIMIT PROVISIONS.   NOTWITHSTANDING ANY OTHER LAW TO THE
CONTRARY, THE DIRECTOR OF THE BUDGET MAY DIRECT THE STATE COMPTROLLER TO
WITHHOLD ANY STATE AID PAYMENTS DUE TO  A  FISCALLY  DISTRESSED  MUNICI-
PALITY  IN  ORDER  TO  SATISFY  THE  REPAYMENT CONDITIONS OF THE FUNDING
AWARDED PURSUANT TO THIS SUBPARAGRAPH.
  S 2. The local finance law is amended by adding a new  section  160.05
to read as follows:
  S  160.05.  FINANCIAL  RESTRUCTURING  BOARD  FOR LOCAL GOVERNMENTS. 1.
THERE SHALL BE A FINANCIAL RESTRUCTURING  BOARD  FOR  LOCAL  GOVERNMENTS
WHICH  SHALL  CONSIST  OF  FIVE  MEMBERS: THE DIRECTOR OF THE BUDGET WHO
SHALL BE CHAIR OF THE BOARD,  THE  ATTORNEY  GENERAL,  THE  STATE  COMP-
TROLLER, AND THE SECRETARY OF STATE, EACH OF WHOM MAY DESIGNATE A REPRE-
SENTATIVE  TO ATTEND SESSIONS OF THE BOARD ON HIS OR HER BEHALF, AND ONE
DESIGNEE WITH SIGNIFICANT EXPERIENCE IN MUNICIPAL FINANCIAL AND RESTRUC-
TURING MATTERS APPOINTED BY THE GOVERNOR.  THE DESIGNEE OF THE  GOVERNOR
SHALL  SERVE  AT HIS OR HER PLEASURE AND SHALL RECEIVE FAIR COMPENSATION
FOR HIS OR HER SERVICES PERFORMED PURSUANT TO THIS SECTION IN AN  AMOUNT
TO BE DETERMINED BY THE DIRECTOR OF THE BUDGET AND BE REIMBURSED FOR ALL
REASONABLE  EXPENSES  ACTUALLY AND NECESSARILY INCURRED BY HIM OR HER IN
THE PERFORMANCE OF HIS OR HER DUTIES.  THE BOARD SHALL HAVE THE POWER TO
ACT BY AN AFFIRMATIVE VOTE OF A MAJORITY OF THE TOTAL NUMBER OF  MEMBERS
AND  SHALL RENDER ITS FINDINGS AND RECOMMENDATIONS WITHIN NINE MONTHS OF
BEING REQUESTED TO  ACT  BY  A  FISCALLY  DISTRESSED  MUNICIPALITY.  THE
PROVISIONS  OF  SECTION SEVENTEEN OF THE PUBLIC OFFICERS LAW SHALL APPLY
TO MEMBERS OF THE BOARD. NO MEMBER OF THE BOARD SHALL BE HELD LIABLE FOR
THE PERFORMANCE OF ANY FUNCTION OR DUTY AUTHORIZED BY THIS SECTION.  THE
BOARD  MAY  CONTRACT WITH SUCH STAFF AND ENTITIES AS NEEDED TO CARRY OUT
ITS FUNCTIONS PURSUANT TO THIS SECTION. ALL  PROCEEDINGS,  MEETINGS  AND
HEARINGS CONDUCTED BY THE BOARD SHALL BE HELD IN THE CITY OF ALBANY.
  2.  A  "FISCALLY DISTRESSED MUNICIPALITY" SHALL MEAN ANY COUNTY, CITY,
EXCLUDING A CITY WITH A POPULATION GREATER THAN ONE  MILLION,  TOWN,  OR
VILLAGE   THAT  THE  DIRECTOR  OF  THE  BUDGET  DETERMINES  IS  FISCALLY
DISTRESSED. IN CONSIDERING WHETHER A COUNTY, CITY, TOWN  OR  VILLAGE  IS
FISCALLY  DISTRESSED,  THE  DIRECTOR  OF  THE  BUDGET MAY CONSIDER, FUND
BALANCE, FULL VALUE PROPERTY TAX RATE,  OPERATING  DEFICIT,  POPULATION,
AND CONSTITUTIONAL TAX LIMIT EXHAUSTION, AND ANY OTHER FACTORS IN HIS OR
HER DISCRETION CONSISTENT WITH THE PURPOSES OF THIS SECTION.
  3.  UPON  THE REQUEST OF A FISCALLY DISTRESSED MUNICIPALITY, BY RESOL-
UTION OF THE GOVERNING BODY OF THE FISCALLY DISTRESSED MUNICIPALITY, THE
FINANCIAL RESTRUCTURING BOARD FOR LOCAL GOVERNMENTS  SHALL  UNDERTAKE  A
COMPREHENSIVE  REVIEW OF THE OPERATIONS, FINANCES, MANAGEMENT PRACTICES,
ECONOMIC BASE AND ANY OTHER FACTORS THAT IN ITS SOLE DISCRETION IT DEEMS
RELEVANT TO BE ABLE TO MAKE FINDINGS AND  RECOMMENDATIONS  ON  REFORMING
AND  RESTRUCTURING  THE  OPERATIONS  OF  THE FISCALLY DISTRESSED MUNICI-
PALITY.  THE BOARD MAY REQUIRE THE FISCALLY DISTRESSED  MUNICIPALITY  TO
AGREE  TO  FISCAL  ACCOUNTABILITY  MEASURES, AS DETERMINED BY THE BOARD,
INCLUDING, BUT NOT LIMITED TO, MULTI-YEAR FINANCIAL PLANNING.    IT  MAY
ALSO IDENTIFY COST-SAVING MEASURES, RECOMMEND CONSOLIDATION OF FUNCTIONS
OR  AGENCIES  WITHIN  THE FINANCIALLY DISTRESSED MUNICIPALITY OR BETWEEN
THE FINANCIALLY DISTRESSED MUNICIPALITY AND OTHER MUNICIPALITIES,  IDEN-
TIFY  AND  MAKE  AVAILABLE,  TO  THE  EXTENT OTHERWISE PERMITTED BY LAW,
GRANTS AND LOANS ON SUCH TERMS AND CONDITIONS AS IT  DEEMS  APPROPRIATE,
AND MAKE SUCH OTHER RECOMMENDATIONS AS THE BOARD MAY DEEM JUST AND PROP-
ER.  SUCH  RECOMMENDATIONS  SHALL NOT BE FINAL AND BINDING ON A FISCALLY
DISTRESSED MUNICIPALITY UNLESS IT FORMALLY AGREES TO ABIDE BY AND IMPLE-
MENT SUCH RECOMMENDATIONS IN WHICH EVENT SUCH  RECOMMENDATIONS  AND  THE

A. 7738                             4

TERMS  PROVIDED  THEREUNDER  SHALL  BE FINAL AND BINDING ON THE FISCALLY
DISTRESSED MUNICIPALITY.
  4. THE BOARD MAY HOLD HEARINGS AND SHALL HAVE AUTHORITY TO REQUIRE THE
PRODUCTION  OF  ANY INFORMATION THAT IT DEEMS NECESSARY TO UNDERTAKE ITS
COMPREHENSIVE REVIEW.
  5. THE BOARD SHALL ALSO BE AUTHORIZED TO RESOLVE AN  IMPASSE  PURSUANT
TO  SUBDIVISION  FOUR-A OF SECTION TWO HUNDRED NINE OF THE CIVIL SERVICE
LAW.
  S 3. Section 209 of the civil service law is amended by adding  a  new
subdivision 4-a to read as follows:
  4-A.  (A) NOTWITHSTANDING ANYTHING IN SUBDIVISION FOUR OF THIS SECTION
TO THE CONTRARY, A PUBLIC EMPLOYER THAT IS ALSO  A  FISCALLY  DISTRESSED
MUNICIPALITY, AS DEFINED IN SECTION 160.05 OF THE LOCAL FINANCE LAW, AND
IS  OTHERWISE  SUBJECT  TO  SUBDIVISION  FOUR OF THIS SECTION MAY, AND A
PUBLIC EMPLOYEE ORGANIZATION SUBJECT TO SUBDIVISION FOUR OF THIS SECTION
MAY, JOINTLY STIPULATE AND AGREE THAT AN IMPASSE EXISTS,  AT  ANY  TIME,
WITH  RESPECT  TO  COLLECTIVE  NEGOTIATIONS  BETWEEN  THE  PARTIES FOR A
COLLECTIVE BARGAINING AGREEMENT AND, IN LIEU OF COMMENCING A  PROCEEDING
UNDER  SUBDIVISION FOUR OF THIS SECTION, JOINTLY REQUEST THAT THE FINAN-
CIAL RESTRUCTURING BOARD FOR LOCAL GOVERNMENTS, ESTABLISHED  IN  SECTION
160.05  OF  THE LOCAL FINANCE LAW, RESOLVE SUCH IMPASSE.  A JOINT AGREE-
MENT PURSUANT TO THIS SUBDIVISION SHALL BE IRREVOCABLE.
  (B) THE FINANCIAL RESTRUCTURING  BOARD  FOR  LOCAL  GOVERNMENTS  SHALL
RENDER  A JUST AND REASONABLE DETERMINATION OF THE MATTERS IN DISPUTE BY
AN AFFIRMATIVE VOTE OF A MAJORITY OF THE TOTAL NUMBER  OF  ITS  MEMBERS.
IN  ARRIVING  AT  SUCH DETERMINATION, IT SHALL SPECIFY THE BASIS FOR ITS
FINDINGS, TAKING INTO CONSIDERATION, IN ADDITION TO ANY  OTHER  RELEVANT
FACTORS, THOSE FACTORS SET FORTH IN SUBPARAGRAPH (V) OF PARAGRAPH (C) OF
SUBDIVISION  FOUR  OF  THIS  SECTION.  IN  ALL  MATTERS REGARDING PUBLIC
DISCLOSURE OF ITS PROCEEDINGS AND FINDINGS, IT SHALL BE TREATED THE SAME
AS THE PANEL CONVENED PURSUANT TO SUBDIVISION FOUR OF THIS  SECTION.  IT
SHALL  RENDER  A  DETERMINATION  WITHIN  NINE  MONTHS  OF BEING FORMALLY
REQUESTED BY THE PARTIES TO CONVENE.
  (C) EACH PARTY BEFORE THE  FINANCIAL  RESTRUCTURING  BOARD  FOR  LOCAL
GOVERNMENTS  MAY  BE  HEARD  EITHER  IN  PERSON, BY COUNSEL, OR BY OTHER
REPRESENTATIVES, AS THEY MAY RESPECTIVELY  DESIGNATE  AND  MAY  PRESENT,
EITHER  ORALLY  OR  IN  WRITING, OR BOTH, STATEMENTS OF FACT, SUPPORTING
WITNESSES AND OTHER EVIDENCE, AND ARGUMENT OF THEIR RESPECTIVE POSITIONS
WITH RESPECT TO EACH CASE.  THE BOARD SHALL HAVE  AUTHORITY  TO  REQUIRE
THE PRODUCTION OF ADDITIONAL EVIDENCE, EITHER ORAL OR WRITTEN, AS IT MAY
DESIRE   FROM  THE  PARTIES.  ALL  PROCEEDINGS,  MEETINGS  AND  HEARINGS
CONDUCTED BY THE BOARD SHALL BE HELD IN THE CITY OF ALBANY.
  (D) THE DETERMINATION OF THE FINANCIAL RESTRUCTURING BOARD  FOR  LOCAL
GOVERNMENTS WITH RESPECT TO THE CONDITIONS OF EMPLOYMENT PRESENTED TO IT
PURSUANT TO THIS SECTION SHALL BE FINAL AND BINDING UPON THE PARTIES FOR
THE  PERIOD  PRESCRIBED BY SUCH BOARD, BUT IN NO EVENT SHALL SUCH PERIOD
EXCEED FOUR YEARS FROM THE TERMINATION DATE OF ANY  PREVIOUS  COLLECTIVE
BARGAINING  AGREEMENT  OR  IF THERE IS NO PREVIOUS COLLECTIVE BARGAINING
AGREEMENT THEN FOR A PERIOD NOT TO EXCEED FOUR YEARS FROM  THE  DATE  OF
DETERMINATION  BY THE BOARD.  SUCH DETERMINATION SHALL NOT BE SUBJECT TO
THE APPROVAL OF ANY LOCAL LEGISLATIVE BODY OR OTHER MUNICIPAL AUTHORITY,
AND SHALL ONLY BE SUBJECT TO REVIEW BY A COURT OF COMPETENT JURISDICTION
IN THE MANNER PRESCRIBED BY LAW.
  (E) A REQUEST BY A PUBLIC EMPLOYER TO PROCEED PURSUANT TO THIS  SUBDI-
VISION, SHALL CONSTITUTE A REQUEST BY SUCH PUBLIC EMPLOYER, AS A FISCAL-
LY  DISTRESSED  MUNICIPALITY,  TO  THE FINANCIAL RESTRUCTURING BOARD FOR

A. 7738                             5

LOCAL GOVERNMENTS TO UNDERTAKE A COMPREHENSIVE REVIEW OF THE  OPERATIONS
OF  THE  FISCALLY  DISTRESSED MUNICIPALITY PURSUANT TO SECTION 160.05 OF
THE LOCAL FINANCE LAW.  THE  FINANCIAL  RESTRUCTURING  BOARD  FOR  LOCAL
GOVERNMENTS  SHALL  PROCEED  PURSUANT TO SUCH REQUEST IN ACCORDANCE WITH
THAT SECTION. FINDINGS AND RECOMMENDATIONS  RENDERED  PURSUANT  TO  THIS
PARAGRAPH  AND  SECTION  160.05 OF THE LOCAL FINANCE LAW SHALL BE STATED
SEPARATELY FROM THOSE DETERMINATIONS OTHERWISE RENDERED PURSUANT TO THIS
SUBDIVISION.
  S 4. Severability. If any clause,  sentence,  paragraph,  subdivision,
section or part of this article shall be adjudged by any court of compe-
tent jurisdiction to be invalid, such judgment shall not affect, impair,
or invalidate the remainder thereof, but shall be confined in its opera-
tion  to  the  clause, sentence, paragraph, subdivision, section or part
thereof directly involved in the  controversy  in  which  such  judgment
shall have been rendered.
  S  5.  This  act  shall take effect on the sixtieth day after it shall
have become a law, provided, that the provisions of subdivision  4-a  of
section  209 of the civil service law, as added by section three of this
act, shall apply to any public employment dispute which shall be  at  an
impasse  on or after the date this act shall have become a law and shall
expire on the same date as the provisions of subdivision  4  of  section
209  of the civil service law expire pursuant to paragraph (d) of subdi-
vision 4 of section 209 of the civil service law, as amended.