Prohibits bonuses for employees, officers and members of governing boards of state authorities who are members of the New York State retirement system, as a result of or by virtue of employment or membership in the public authority.
TITLE OF BILL: An act to amend the public authorities law, in relation to prohibiting bonuses for employees, officers and members of governing boards of state authorities who are members of the New York State retirement system
PURPOSE OR GENERAL IDEA OF BILL: The purpose of the bill is to remove the ability of public authorities to pay bonuses to employees, officers or members of governing boards who participate in the New York State retirement system as a result of their association with such public authority.
SUMMARY OF SPECIFIC PROVISIONS: Section One - adds a section 2854 of the Public Authorities Law that prohibit the payment of bonuses of any nature to any employee, officer or member of a governing board of a state agency who is a member of the New York State retirement system as a result or by virtue of employment or membership in the state authority.
Section Two - Effective date.
JUSTIFICATION: Recent articles have reported New York State Public Authorities paying bonuses on top of lucrative salaries and other benefits, including participation in the state retirement system. While bonuses may be appropriate in the private sector, taking into account the state retirement benefits that are not available to employees in the private sector, in times of fiscal crisis, state authorities should not be authorizing bonuses.
PRIOR LEGISLATIVE HISTORY: 2011-12 - S.4484 -- CORPORATIONS
FISCAL IMPLICATIONS: This bill would lead to cost savings for the state and state agencies.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 2500 2013-2014 Regular Sessions IN SENATE January 18, 2013 ___________Introduced by Sens. RANZENHOFER, DeFRANCISCO, LARKIN, LIBOUS -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions AN ACT to amend the public authorities law, in relation to prohibiting bonuses for employees, officers and members of governing boards of state authorities who are members of the New York State retirement system THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The public authorities law is amended by adding a new section 2854 to read as follows: S 2854. PROHIBITION ON PAYMENT OF BONUSES FOR CERTAIN EMPLOYEES, OFFI- CERS AND MEMBERS OF GOVERNING BOARDS. NO BONUS OF ANY NATURE SHALL BE PAID TO ANY EMPLOYEE, OFFICER OR MEMBER OF A GOVERNING BOARD OF A STATE AUTHORITY WHO IS A MEMBER OF THE NEW YORK STATE RETIREMENT SYSTEM, AS A RESULT OF OR BY VIRTUE OF EMPLOYMENT OR MEMBERSHIP IN THE STATE AUTHORI- TY. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05163-01-3