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

                                  6862

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              April 5, 2011
                               ___________

Introduced  by M. of A. GOODELL -- read once and referred to the Commit-
  tee on Education

AN ACT to amend the education law, in  relation  to  creating  a  school
  board empowerment act which allows local school districts to declare a
  fiscal  emergency under designated conditions and fiscally restructure
  so as to minimize adverse impacts on student education; and  providing
  for the repeal of such provisions upon the expiration thereof

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

  Section 1. The education law is amended by adding a new title  5-a  to
read as follows:
                                 TITLE V-A
                        SCHOOL BOARD EMPOWERMENT
ARTICLE 78. SCHOOL BOARD EMPOWERMENT (SS 3850-3853)
                               ARTICLE 78
                        SCHOOL BOARD EMPOWERMENT
SECTION 3850. DECLARATION OF FISCAL EMERGENCY.
        3851. TEMPORARY FREEZE OF EXPENDITURE INCREASES.
        3852. RESTRUCTURING OPERATIONS.
        3853. RESTRUCTURING PLAN.
  S  3850.  DECLARATION  OF  FISCAL EMERGENCY. NOTWITHSTANDING ANY OTHER
PROVISION OF THE LAW TO THE CONTRARY, UPON    A  MAJORITY  VOTE  OF  THE
SCHOOL  BOARD  A  FISCAL  EMERGENCY  MAY BE DECLARED ALLOWING THE SCHOOL
BOARD TO TAKE REASONABLE STEPS TO AMELIORATE THE FISCAL EMERGENCY PURSU-
ANT TO THE PROVISIONS OF THIS ARTICLE. TO DECLARE A FISCAL EMERGENCY THE
BOARD MUST BE ABLE TO DEMONSTRATE:  1.  PROJECTED  EXPENSES  EXCEED  ALL
AVAILABLE  REVENUE;  AND  2. THE SCHOOL BUDGET WAS REJECTED BY VOTERS OR
FAILED TO RECEIVE THE VOTES NECESSARY TO EXCEED ANY ENACTED PROPERTY TAX
CAP. SUCH SCHOOL BOARD VOTE SHALL BE MADE FOLLOWING A PUBLIC HEARING  AT
WHICH  THE  SCHOOL  BOARD SHALL PROVIDE EVIDENCE THAT PROJECTED EXPENSES
EXCEED ALL AVAILABLE REVENUE. EVIDENCE PROFFERED  BY  THE  SCHOOL  BOARD

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09815-02-1
              

A. 6862                             2

SHALL INCLUDE A SHOWING OF PROJECTED INCREASES IN CONTRACTUALLY MANDATED
COSTS,  PENSION  COSTS,  HEALTH  CARE  COSTS,  UTILITY  COSTS, AND OTHER
EXPENDITURES, EXCEED REVENUES FROM STATE AID AND  OTHER  REVENUES.  SUCH
PUBLIC  HEARING SHALL BE CONDUCTED PURSUANT TO THE PROVISIONS OF ARTICLE
SEVEN OF THE PUBLIC OFFICERS LAW.
  S 3851. TEMPORARY FREEZE OF EXPENDITURE INCREASES. 1.  NOTWITHSTANDING
ANY OTHER PROVISION OF LAW TO THE CONTRARY, UPON THE  DECLARATION  OF  A
FISCAL  EMERGENCY PURSUANT TO SECTION THIRTY-EIGHT HUNDRED FIFTY OF THIS
ARTICLE THE  SCHOOL  BOARD  SHALL  HAVE  THE  AUTHORITY  TO  FREEZE  ANY
INCREASES  IN EXPENDITURES IN A MANNER THAT MINIMIZES ANY ADVERSE IMPACT
ON STUDENT EDUCATION.  EXPENDITURE FREEZES MAY INCLUDE FREEZING EMPLOYEE
SALARIES AND ANY CONTRACTUALLY NEGOTIATED INCREASES TO EMPLOYEE SALARIES
PROVIDED THAT BEFORE IMPLEMENTING  A  SALARY  FREEZE  THE  SCHOOL  BOARD
DETERMINES  BY  A MAJORITY VOTE THAT: A. THE SCHOOL BOARD HAS CONSIDERED
ALL OTHER  REASONABLE  ALTERNATIVES  PRIOR  TO  IMPAIRING  ANY  EXISTING
EMPLOYEE  CONTRACTS; B. NO OTHER REASONABLE COURSE OF ACTION WOULD SERVE
ITS PURPOSE; AND C.    ITS  ACTIONS  ARE  REASONABLE  IN  LIGHT  OF  THE
SURROUNDING CIRCUMSTANCES.
  2.  ALL  EXPENDITURE  FREEZES  APPROVED  BY  THE SCHOOL BOARD SHALL BE
DISCLOSED AT A PUBLIC HEARING CONDUCTED PURSUANT TO  THE  PROVISIONS  OF
ARTICLE SEVEN OF THE PUBLIC OFFICERS LAW.
  S   3852.  RESTRUCTURING  OPERATIONS.  1.  NOTWITHSTANDING  ANY  OTHER
PROVISION OF THE LAW TO THE CONTRARY SHOULD A SCHOOL BOARD VOTE AFFIRMA-
TIVELY TO ADOPT AN EMPLOYEE SALARY FREEZE  THE  SCHOOL  BOARD  SHALL  BE
REQUIRED TO COMPLY WITH ALL THE PROVISIONS OF THIS SECTION.
  2.  THE  SCHOOL  BOARD SHALL ENTER INTO A NINETY-DAY PERIOD OF NEGOTI-
ATIONS WITH ITS EMPLOYEES AND/OR THEIR DULY  APPOINTED  REPRESENTATIVES.
AT  THE  REQUEST  OF  EITHER  PARTY, A PUBLIC EMPLOYMENT RELATIONS BOARD
MEDIATOR SHALL BE ASSIGNED TO OVERSEE AND ASSIST SUCH NEGOTIATIONS.
  3. UPON EXPIRATION OF SUCH NINETY-DAY PERIOD THE  SCHOOL  BOARD  SHALL
HAVE  THE  POWER  TO RESTRUCTURE OPERATIONS INCLUDING CHANGING THE TERMS
AND CONDITIONS OF ANY CURRENT EMPLOYMENT CONTRACTS, ADJUSTING PAY LEVELS
AND MANDATORY STAFFING REQUIREMENTS, WORK RULES,  AND  HEALTH  INSURANCE
BENEFITS  AND  CONTRIBUTIONS.  TO IMPLEMENT ANY MEASURE THAT IMPAIRS ANY
EMPLOYEES' RIGHTS UNDER A CURRENT CONTRACT THE  SCHOOL  BOARD  SHALL  BE
REQUIRED TO SHOW:
  A.  THAT  PERFORMANCE  UNDER  THE CURRENT CONTRACT TERMS WOULD HAVE AN
ADVERSE IMPACT ON STUDENT EDUCATION DUE TO FISCAL CONSTRAINTS;
  B. THAT THE SCHOOL BOARD HAS CONSIDERED ALL OTHER REASONABLE  ALTERNA-
TIVES  PRIOR  TO  IMPAIRING ANY EXISTING EMPLOYEE CONTRACTS AND NO OTHER
COURSE OF ACTION WOULD BETTER SERVE ITS PURPOSE; AND
  C. THE SCHOOL BOARD'S ACTIONS ARE REASONABLE IN LIGHT OF THE SURROUND-
ING CIRCUMSTANCES.
  4. ANY REVISED CONTRACTS SHALL REMAIN IN EFFECT UNTIL A NEW COLLECTIVE
BARGAINING AGREEMENT IS NEGOTIATED.
  5. THE PROVISIONS OF SECTIONS FIFTEEN HUNDRED FIVE-A, EIGHTEEN HUNDRED
FOUR, NINETEEN HUNDRED SEVENTEEN, NINETEEN HUNDRED SEVENTEEN-A,  TWENTY-
FIVE HUNDRED TEN, TWENTY-FIVE HUNDRED EIGHTY-EIGHT, THREE THOUSAND THIR-
TEEN,  THREE THOUSAND FOURTEEN-A, THREE THOUSAND FOURTEEN-B, THREE THOU-
SAND  FOURTEEN-C,  AND  THREE  THOUSAND  FOURTEEN-D  OF   THIS   CHAPTER
PERTAINING  TO  SENIORITY BASE EMPLOYEE RETENTION SHALL NOT APPLY WHEN A
SCHOOL BOARD HAS DECLARED A FISCAL EMERGENCY PURSUANT TO  SECTION  THREE
THOUSAND  EIGHT  HUNDRED  FIFTY OF THIS ARTICLE AND IS IN THE PROCESS OF
RESTRUCTURING OPERATIONS UNDER THE PROVISIONS OF THIS SECTION. DECISIONS
ON THE RETENTION OF TEACHERS, SHOULD POSITIONS BE  ABOLISHED,  SHALL  BE
BASED  ON  A  NUMBER  OF  FACTORS  INCLUDING,  BUT NOT LIMITED TO:   THE

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SCHOOLS' NEEDS FOR PARTICULAR LICENSE  AREAS;  THE  ANNUAL  PROFESSIONAL
PERFORMANCE REVIEW CONDUCTED PURSUANT TO SECTION THREE THOUSAND TWELVE-C
OF  THIS  CHAPTER,  AVAILABLE  STUDENT  PERFORMANCE DATA; ATTENDANCE; AN
ASSESSMENT  OF THE TEACHER'S PERFORMANCE BY THE TEACHER'S BUILDING PRIN-
CIPAL OR OTHER  BUILDING  ADMINISTRATOR  IN  CHARGE  OF  THE  SCHOOL  OR
PROGRAM; THE EDUCATIONAL QUALIFICATIONS OF THE TEACHER INCLUDING CURRIC-
ULUM  SPECIALIZED  EDUCATION,  DEGREES, LICENSES, OR AREAS OF EXPERTISE;
THE LENGTH OF SATISFACTORY SERVICE; AND OTHER  FACTORS  RELATED  TO  THE
TEACHER'S  EXPERIENCE  AND  DEMONSTRATED  ABILITY.  THE TEACHER'S SALARY
SHALL NOT BE A FACTOR IN MAKING A LAYOFF RECOMMENDATION.  THE  BOARD  OF
EDUCATION  SHALL EXERCISE ITS DISCRETION AND SHALL APPROVE OR REJECT THE
RECOMMENDATIONS OF THE SUPERINTENDENT SO  AS  TO  MINIMIZE  THE  ADVERSE
IMPACT ON STUDENT EDUCATION.
  6. SCHOOL BOARDS SHALL HAVE THE AUTHORITY TO ENTER INTO NEW COLLECTIVE
BARGAINING  AGREEMENTS  THAT  ALTER  EMPLOYEE  CONTRIBUTION REQUIREMENTS
AND/OR THE AMOUNT OF EMPLOYEE  SALARIES  CONSIDERED  BY  THE  RETIREMENT
SYSTEM FOR PENSION PURPOSES.
  7. THE SCHOOL BOARD SHALL INCLUDE ANALYSIS OF OTHER PLAUSIBLE MEANS OF
RAISING REVENUE, AND UPON A MAJORITY VOTE IMPLEMENT SUCH MEASURES BEFORE
REDUCING EMPLOYEE SALARIES OR BENEFITS OR UTILIZE SUCH REVENUE TO OFFSET
REDUCTIONS IN EMPLOYEE SALARIES OR BENEFITS.
  S  3853.  RESTRUCTURING  PLAN.  THE  SCHOOL BOARD SHALL BE REQUIRED TO
SUBMIT A RESTRUCTURING PLAN TO THE DEPARTMENT.  SUCH RESTRUCTURING  PLAN
SHALL  PROVIDE  DETAILED ANALYSIS OF THE BOARD'S COMPLIANCE WITH SECTION
THREE THOUSAND EIGHT HUNDRED FIFTY-TWO OF THIS ARTICLE.
  S 2. This act shall take effect immediately and shall expire  December
31, 2014, when upon such date the provisions of this act shall be deemed
repealed.