S T A T E O F N E W Y O R K
________________________________________________________________________
5683
2013-2014 Regular Sessions
I N S E N A T E
June 4, 2013
___________
Introduced by Sens. MARTINS, VALESKY -- (at request of the Governor) --
read twice and ordered printed, and when printed to be committed to
the Committee on Local Government
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
S. 5683 2
[(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
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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
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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
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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.