senate Bill S5865

Establishes the financial restructuring board for local governments and relates to public arbitration panels determinations of whether public employers are fiscally eligible

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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  • 18 / Jun / 2013
    • REFERRED TO RULES
  • 20 / Jun / 2013
    • ORDERED TO THIRD READING CAL.1568
  • 21 / Jun / 2013
    • SUBSTITUTED BY A8086

Summary

Establishes the financial restructuring board for local governments; relates to public arbitration panels for deciding whether public employers are fiscally eligible.

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Bill Details

See Assembly Version of this Bill:
A8086
Versions:
S5865
Legislative Cycle:
2013-2014
Law Section:
State Finance Law
Laws Affected:
Amd §54, St Fin L; add §160.05, Loc Fin L; amd §209, Civ Serv L

Sponsor Memo

BILL NUMBER:S5865

TITLE OF BILL:
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
to amend the civil service law, in relation to public
arbitration panels determinations of
whether public employers are fiscally eligible

Purpose:

This bill would establish a permanent Financial Restructuring Board
for Local Governments that would provide a meaningful, substantive
avenue for fiscally eligible municipalities to reform and restructure
and provide public services in a cost-effective manner. It would also
extend current provisions of the binding interest arbitration law and
reform that arbitration process by setting forth new parameters for
arbitration awards.

Summary of Provisions:

Section 1 of the bill would amend the State Finance Law to empower the
newly created Financial Restructuring Board for Local Governments
("the Board") to award currently authorized Local Government
Performance and Efficiency grants, in its discretion, for financial
restructuring and related purposes.

Section 2 of the bill would amend the Local Finance Law to create a
permanent Financial Restructuring Board for Local Governments
composed of ten members: the Director of the Budget (who would serve
as chair), the State Comptroller, the Attorney General and the
Secretary of State (each of whom could designate an individual to
serve on their behalf) and six members appointed by the Governor, one
of whom upon recommendation of the Speaker of the Assembly, one of
whom upon the recommendation of the Temporary President of the
Senate, one with experience in municipal financial and restructuring
matters and three other members.

The Board, at the request of a "fiscally eligible municipality"
(eligibility to be determined by the Board and not including New York
City), would be empowered to seek information and make necessary
queries in order to comprehensively review government operations,
finances, management practices, a municipality's economic base and
any other factors it deemed relevant to-make findings and
recommendations on reforming and restructuring the operations of such
municipality. It would have the discretion to, among other things,
award grants, and prescribe loans (as provided in section one of the
bill), the terms of which it would formulate, as well as
make other recommendations. The Board's recommendations would not bind
a municipality, but if the municipality agrees to the Board's

proposals, it would be contractually bound to fulfill those terms.
The Board would be mandated to complete its work and issue
recommendations within six months of receiving a request to convene.

Section 3 of the bill would amend Civil Service L. § 209 to provide an
alternative "for fiscally eligible municipalities" to the current
binding arbitration law. The municipality, with the consent of an
impacted union (subject to Civil Service L. § 209, subd. 4), would
have the opportunity to present an impasse in collective bargaining
for a final determination to the Board. In such case, the Board would
operate in the same manner as an arbitration panel under subdivisions
4 and 6 of Civil Service L. § 209 and issue a binding ruling which
would have to be rendered within six months of convening.

Section 4 of the bill would extend the current statute for binding
interest arbitration in Civil Service L. § 209 from July 1, 2013 to
July 1, 2016.

Section 5 of the bill would establish criteria by which a local
government (a county, city, town, or village) subject to the
"Property Tax Cap" in General Municipal L. § 3-c could be deemed a
fiscally eligible municipality for which it's "ability to pay" would
be the lead factor in an arbitrator's award under Civil Service L.
209. For any such local government entering binding interest
arbitration, the arbitration panel must first and foremost, give 70%
of its weight and consideration to the local government's "ability to
pay". All other factors and consideration would receive the remaining
30% weight. In addition, for these local governments, arbitrators
would have to factor in the constraints and limitations imposed by
the "Property Tax Cap".

For purposes of this bill, a local government would be deemed a
fiscally eligible municipality for arbitration purposes if one of the
following two fiscal tests are met: (1) if the local government's
average full value property tax rate is above the 75th percentile for
all municipalities statewide, as averaged over the most recent five
fiscal years, or, (2) if the local government's five year average
general fund balance equals less than five percent of its budget, and
the government has received certification from the State comptroller
verifying total fund balance availability. If a local government
failed to report any of the data necessary to compute these two
tests, it would not be considered fiscally eligible and could not
avail itself of the associated provisions.

Section 5 of the bill is a severability clause.

Section 6 of the bill provides the effective date.

Existing Law:

There is no permanent body empowered by law to inquire into and make
recommendations called for in this legislation with respect to

municipalities. In addition, Civil Service Law § 209, subd. 4
provides the only avenue for resolving impasses between
municipalities and certain uniformed employee organizations.

Justification:

Municipalities, when faced with a fiscal crisis, often have nowhere to
turn except for the extraordinary remedies of bankruptcy or the
appointment of a financial control board - or do nothing. There is no
standing body under State or federal law to which they can turn for
help. This proposal fills that void. Provided that such
municipalities are prepared to make the often hard choices required
to maintain solvency and fiscal viability while still providing the
services to which their residents are entitled, the newly constituted
Financial Restructuring Board for Local Governments would provide
those municipalities with a resource so that their restructuring
efforts can be coordinated and effective. The Board would be
available all year and not tied to a legislative session. Moreover,
it would have to make recommendations within six months of being
asked, a significantly shorter time than proceeding in court. As a
public body, it would be subject to New York's Open Meetings Law and
Freedom of Information Law.

One incentive already available for participating municipalities is
the Local Government Performance Efficiency Program which would be
amended to allow financial assistance as approved by the Board. Under
this program, up to $80 million would be available this year. The
primary purpose for such assistance would be to help fund the
restructuring initiatives and recommendations provided by the Board.
The Board would have discretion to determine what other form of
assistance to provide (grant, loan, or combination). Specific loan
terms and conditions would be determined by the Board - including
allowable uses for loan proceeds.

In instances when public employers and their represented police and
fire employees are at an impasse in their contractual negotiations,
current law provides the terms by which an interest arbitration panel
can make awards and settle the dispute. While current law requires an
arbitrator to consider a local government's "ability to pay", this
concept is neither defined nor emphasized. These amendments to New
York State's Taylor Law would remedy that shortcoming by letting
eligible municipalities have their ability to pay given a specific,
leading weight in determining an arbitration award.

Finally, a fiscally eligible municipality and its labor unions subject
to the Taylor Law's provisions authorizing interest arbitration can
jointly ask the Board to act as the arbitration panel to decide
contract disputes at any point that the parties agree that they are
at impasse. The Board, when so acting as an arbitration panel, must
render its decision within six months of being so requested, a
substantially shorter time period than the length of most interest
arbitrations.

Legislative History:

This is a new bill. Civil Service L. § 209, subd. 4 was last extended
in 2009.

Budget Implications:

There will be minimal fiscal impacts associated with this bill. Costs
associated with the operation of the Financial Restructuring Board
for Local Governments would be borne by existing appropriations, and
funding for any new financial assistance to localities would come
from appropriations contained in the enacted 2013-14 State Budget.

Effective Date:

The bill would take effect immediately, but sections one, two and
three would take effect on the ninetieth day after it the bill would
become a law and sections four and five would be deemed to have been
in full force and effect on and after April 1, 2013; and sections
three, four and five would apply to all agreements and interest
arbitration determinations that expire before, on or after April 1,
2013 except those (a) where the public employment relations board
received a petition to refer the dispute to a public arbitration
panel pursuant to subdivision 4 of Civil Service L. § 209 before June
14, 2013 or (b) where the public employment relations board received
a declaration of impasse pursuant to subdivision 4 of Civil Service
L. § 209 on or after April 1, 2013 but on or before June 14, 2013.

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

    S. 5865                                                  A. 8086

                       2013-2014 Regular Sessions

                      S E N A T E - A S S E M B L Y

                              June 18, 2013
                               ___________

IN  SENATE -- 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 Rules

IN  ASSEMBLY  --  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 to amend the civil service law, in relation
  to public arbitration panels determinations of whether public  employ-
  ers are fiscally eligible

  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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12047-01-3

S. 5865                             2                            A. 8086

  [(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.
  [(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
ELIGIBLE MUNICIPALITY" SHALL HAVE THE SAME MEANING AS "FISCALLY ELIGIBLE
MUNICIPALITY" AS DEFINED BY SECTION 160.05 OF THE LOCAL FINANCE LAW. FOR
THE  PURPOSES  OF  THIS SUBPARAGRAPH, "FINANCIAL RESTRUCTURING 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  ELIGIBLE  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  ELIGIBLE  MUNICIPALITY,  THE  STRUCTURE  OF  SUCH FUNDING, ANY
CONDITIONS TO BE PLACED ON A FISCALLY ELIGIBLE MUNICIPALITY THAT ACCEPTS
SUCH FUNDING, AND ANY OTHER ASPECTS OF FUNDING AWARDED PURSUANT TO  THIS

S. 5865                             3                            A. 8086

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 BUT IN NO EVENT MAY THE SUM
OF ALL AWARDS PURSUANT TO THIS SUBPARAGRAPH BE GREATER THAN FIVE MILLION
DOLLARS FOR ANY SINGLE MUNICIPALITY NOR MAY ANY LOAN BE FOR A TERM LONG-
ER THAN TEN YEARS.  FURTHER, ANY SUCH LOANS SHALL NOT BE CONSIDERED DEBT
FOR PURPOSES OF CALCULATING CONSTITUTIONAL LIMIT PROVISIONS.    NOTWITH-
STANDING  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 ELIGIBLE MUNICIPALITY IN ORDER TO SATISFY THE REPAYMENT  CONDI-
TIONS 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 TEN MEMBERS: THE DIRECTOR OF THE BUDGET WHO SHALL
BE CHAIR OF THE BOARD, THE ATTORNEY GENERAL, THE STATE COMPTROLLER,  AND
THE  SECRETARY  OF STATE, EACH OF WHOM MAY DESIGNATE A REPRESENTATIVE TO
ATTEND SESSIONS OF THE BOARD ON HIS  OR  HER  BEHALF,  AND  SIX  MEMBERS
APPOINTED  BY  THE  GOVERNOR, ONE OF WHOM UPON THE RECOMMENDATION OF THE
TEMPORARY PRESIDENT OF THE SENATE, ONE OF WHOM UPON  THE  RECOMMENDATION
OF  THE SPEAKER OF THE ASSEMBLY, AND FOUR OTHER MEMBERS APPOINTED BY THE
GOVERNOR, ONE OF WHOM SHALL HAVE  SIGNIFICANT  EXPERIENCE  IN  MUNICIPAL
FINANCIAL  AND  RESTRUCTURING MATTERS.  IN MAKING SUCH APPOINTMENTS, THE
GOVERNOR SHALL CONSIDER REGIONAL DIVERSITY.  APPOINTEES SHALL  SERVE  AT
THE  PLEASURE  OF  HIS OR HER APPOINTING AUTHORITY. THE APPOINTEE OF THE
GOVERNOR WHO HAS BEEN DESIGNATED AS  HAVING  SIGNIFICANT  EXPERIENCE  IN
MUNICIPAL FINANCIAL AND RESTRUCTURING MATTERS SHALL RECEIVE FAIR COMPEN-
SATION  FOR HIS OR HER SERVICES PERFORMED PURSUANT TO THIS SECTION IN AN
AMOUNT TO BE DETERMINED BY THE DIRECTOR OF THE BUDGET  AND  ALL  MEMBERS
SHALL 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 RECOM-
MENDATIONS WITHIN SIX MONTHS OF BEING REQUESTED TO  ACT  BY  A  FISCALLY
ELIGIBLE 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 AUTHOR-
IZED  BY  THIS  SECTION.   THE WORK OF THE BOARD SHALL BE CONDUCTED WITH
SUCH STAFF AS THE DIRECTOR OF THE BUDGET, THE SECRETARY  OF  STATE,  THE
ATTORNEY  GENERAL  AND  THE STATE COMPTROLLER SHALL MAKE AVAILABLE.  ALL
PROCEEDINGS, MEETINGS AND HEARINGS CONDUCTED BY THE BOARD SHALL BE  HELD
IN THE CITY OF ALBANY.
  2.  A  "FISCALLY  ELIGIBLE  MUNICIPALITY" SHALL MEAN ANY COUNTY, CITY,
EXCLUDING A CITY WITH A POPULATION GREATER THAN ONE  MILLION,  TOWN,  OR
VILLAGE  THAT THE BOARD, ON A CASE BY CASE BASIS, DETERMINES WOULD BENE-
FIT FROM THE SERVICES AND ASSISTANCE WHICH THE BOARD HAS LEGAL AUTHORITY
TO OFFER.  IN EVALUATING WHETHER A MUNICIPALITY IS A  FISCALLY  ELIGIBLE
MUNICIPALITY,  THE  BOARD SHALL CONSIDER THE AVERAGE FULL VALUE PROPERTY
TAX RATE OF SUCH PUBLIC EMPLOYER AND THE AVERAGE FUND BALANCE PERCENTAGE
OF SUCH PUBLIC EMPLOYER AND SUCH OTHER CRITERIA AS THE BOARD DEEMS RELE-
VANT.  FOR PURPOSES OF THIS SECTION,  "FULL  VALUE  PROPERTY  TAX  RATE"
SHALL  MEAN  THE  AMOUNT  TO  BE RAISED BY TAX ON REAL ESTATE BY A LOCAL
GOVERNMENT IN A GIVEN FISCAL YEAR DIVIDED BY THE FULL VALUATION OF TAXA-
BLE REAL ESTATE FOR THAT SAME FISCAL YEAR AS REPORTED TO THE  OFFICE  OF

S. 5865                             4                            A. 8086

THE STATE COMPTROLLER; "AVERAGE FULL VALUE PROPERTY TAX RATE" SHALL MEAN
THE  SUM  OF  THE FULL VALUE PROPERTY TAX RATES FOR THE FIVE MOST RECENT
FISCAL YEARS DIVIDED BY FIVE; "FUND BALANCE PERCENTAGE" SHALL  MEAN  THE
TOTAL  FUND BALANCE IN THE GENERAL FUND OF A LOCAL GOVERNMENT IN A GIVEN
FISCAL YEAR DIVIDED BY THE TOTAL EXPENDITURES FROM THE GENERAL FUND  FOR
THAT  SAME  FISCAL  YEAR  AS  REPORTED  TO THE OFFICE OF THE STATE COMP-
TROLLER; AND "AVERAGE FUND BALANCE PERCENTAGE" SHALL MEAN THE SUM OF THE
FUND BALANCE PERCENTAGES FOR THE FIVE  MOST  RECENTLY  COMPLETED  FISCAL
YEARS DIVIDED BY FIVE.
  (A)  IF  THE AVERAGE FULL VALUE PROPERTY TAX RATE OF SUCH MUNICIPALITY
IS GREATER THAN THE AVERAGE FULL VALUE PROPERTY TAX RATE OF SEVENTY-FIVE
PERCENT OF COUNTIES, CITIES, TOWNS,  AND  VILLAGES,  WITH  LOCAL  FISCAL
YEARS ENDING IN THE SAME CALENDAR YEAR AS OF THE MOST RECENTLY AVAILABLE
INFORMATION,  THE  BOARD  MUST FIND THAT SUCH MUNICIPALITY IS A FISCALLY
ELIGIBLE MUNICIPALITY.  THE OFFICE OF THE STATE COMPTROLLER  SHALL  MAKE
PUBLICLY  AVAILABLE  THE  LIST  OF COUNTIES, CITIES, TOWNS, AND VILLAGES
THAT HAVE AN AVERAGE FULL VALUE PROPERTY TAX RATE THAT MEETS SUCH CRITE-
RIA IN EACH LOCAL FISCAL YEAR. IF A MUNICIPALITY HAS NOT REPORTED TO THE
OFFICE OF THE STATE COMPTROLLER THE INFORMATION NECESSARY  TO  CALCULATE
ITS  AVERAGE  FULL VALUE PROPERTY TAX RATE, SUCH MUNICIPALITY MAY NOT BE
DEEMED A FISCALLY ELIGIBLE  MUNICIPALITY  AND  THE  PROVISIONS  OF  THIS
SECTION SHALL NOT APPLY.
  (B)  IF  THE  AVERAGE  FUND BALANCE PERCENTAGE OF SUCH MUNICIPALITY IS
LESS THAN FIVE PERCENT, THE BOARD MUST FIND THAT SUCH MUNICIPALITY IS  A
FISCALLY  ELIGIBLE  MUNICIPALITY.    THE OFFICE OF THE STATE COMPTROLLER
SHALL MAKE PUBLICLY AVAILABLE THE LIST OF COUNTIES, CITIES,  TOWNS,  AND
VILLAGES  THAT  HAVE  AN AVERAGE FUND BALANCE PERCENTAGE THAT MEETS SUCH
CRITERIA IN EACH LOCAL FISCAL YEAR. IF A MUNICIPALITY HAS  NOT  REPORTED
TO  THE  OFFICE  OF  THE  STATE COMPTROLLER THE INFORMATION NECESSARY TO
CALCULATE ITS AVERAGE FUND BALANCE PERCENTAGE, SUCH MUNICIPALITY MAY NOT
BE DEEMED A FISCALLY ELIGIBLE MUNICIPALITY AND THE  PROVISIONS  OF  THIS
SECTION SHALL NOT APPLY.
  3. UPON THE REQUEST OF A FISCALLY ELIGIBLE MUNICIPALITY, BY RESOLUTION
OF  THE  GOVERNING BODY OF SUCH MUNICIPALITY WITH THE CONCURRENCE OF THE
CHIEF EXECUTIVE OF SUCH MUNICIPALITY, THE FINANCIAL RESTRUCTURING  BOARD
FOR  LOCAL GOVERNMENTS MAY UNDERTAKE A COMPREHENSIVE REVIEW OF THE OPER-
ATIONS, 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 OPER-
ATIONS OF THE FISCALLY ELIGIBLE MUNICIPALITY.  AS PART OF SUCH RECOMMEN-
DATIONS, THE BOARD MAY PROPOSE THAT SUCH MUNICIPALITY  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 SUCH MUNICIPALITY OR BETWEEN SUCH MUNICIPALITY AND OTHER  MUNICI-
PALITIES,  CONSISTENT WITH EXISTING LAW, IDENTIFY 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 RECOMMENDA-
TIONS AS THE BOARD MAY DEEM JUST AND PROPER BUT IN NO  EVENT  SHALL  THE
SUM  OF ALL AWARDS MADE BY THE BOARD TO A SINGLE FISCALLY ELIGIBLE MUNI-
CIPALITY BE GREATER THAN FIVE MILLION DOLLARS.  IF SUCH AWARD IS A LOAN,
IT MAY NOT BE FOR A TERM LONGER THAN TEN YEARS.  IN THE EVENT A GRANT OR
LOAN IS MADE, THE BOARD MAY CONDITION SUCH AWARD ON THE FISCALLY  ELIGI-
BLE MUNICIPALITY SUBMITTING A REPORT OR REPORTS ON SUCH ACTIONS TAKEN BY
THE  FISCALLY  ELIGIBLE MUNICIPALITY PURSUANT TO THE BOARD'S RECOMMENDA-
TIONS, AND THE BOARD SHALL REQUIRE THAT THE ELIGIBLE  MUNICIPALITY  MUST

S. 5865                             5                            A. 8086

ADOPT  AND  IMPLEMENT  ALL THE BOARD'S RECOMMENDATIONS AS A CONDITION TO
RECEIVING AN AWARD OR AWARDS.  BEFORE MAKING FINAL RECOMMENDATIONS,  THE
BOARD  SHALL  CONSULT  WITH  THE  FISCALLY ELIGIBLE MUNICIPALITY.   SUCH
RECOMMENDATIONS  SHALL  NOT  BE FINAL AND BINDING ON A FISCALLY ELIGIBLE
MUNICIPALITY UNLESS IT FORMALLY AGREES TO ABIDE BY  AND  IMPLEMENT  SUCH
RECOMMENDATIONS  IN  WHICH  EVENT  SUCH  RECOMMENDATIONS  AND  THE TERMS
PROVIDED THEREUNDER SHALL BE FINAL AND BINDING ON SUCH 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.    THE  BOARD  SHALL POST ON A PUBLICLY AVAILABLE
WEBSITE ALL RECOMMENDATIONS AND FINDINGS MADE PURSUANT TO THIS SECTION.
  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 A FISCALLY  ELIGIBLE  MUNICI-
PALITY,  AS  DEFINED  IN SECTION 160.05 OF THE LOCAL FINANCE LAW, AND IS
OTHERWISE SUBJECT TO SUBDIVISION FOUR OF THIS SECTION,  UPON  RESOLUTION
OF  ITS GOVERNING BODY WITH THE CONCURRENCE OF ITS CHIEF EXECUTIVE OFFI-
CER, 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, MAY JOINTLY REQUEST
THAT THE FINANCIAL RESTRUCTURING BOARD  FOR  LOCAL  GOVERNMENTS,  ESTAB-
LISHED IN SECTION 160.05 OF THE LOCAL FINANCE LAW, RESOLVE SUCH IMPASSE.
A JOINT REQUEST 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 SUBDIVISION SIX 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 SUBDIVI-
SION FOUR OF THIS SECTION. IT SHALL RENDER A  DETERMINATION  WITHIN  SIX
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

S. 5865                             6                            A. 8086

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.
  S  4.    Paragraph  (d)  of  subdivision 4 of section 209 of the civil
service law, as amended by section 9 of part A of  chapter  504  of  the
laws of 2009, is amended to read as follows:
  (d) The provisions of this subdivision shall expire [thirty-six] THIR-
TY-NINE years from July first, nineteen hundred seventy-seven, and here-
after may be renewed every four years.
  S  5.  Section 209 of the civil service law is amended by adding a new
subdivision 6 to read as follows:
  6. (A) FOR DISPUTES CONCERNING AN IMPASSE PURSUANT TO SUBDIVISION FOUR
OF THIS SECTION THAT INVOLVE A COUNTY, CITY, TOWN, OR VILLAGE SUBJECT TO
SECTION THREE-C OF THE GENERAL MUNICIPAL LAW, A PUBLIC ARBITRATION PANEL
SHALL MAKE A DETERMINATION AS TO WHETHER SUCH  COUNTY,  CITY,  TOWN,  OR
VILLAGE,  IS  A PUBLIC EMPLOYER THAT IS A FISCALLY ELIGIBLE MUNICIPALITY
AS PART OF ITS ANALYSIS OF THE FINANCIAL ABILITY OF THE PUBLIC  EMPLOYER
TO PAY.
  (B)  IN  EVALUATING WHETHER A PUBLIC EMPLOYER COVERED BY THIS SUBDIVI-
SION IS A FISCALLY ELIGIBLE MUNICIPALITY, SUCH PUBLIC ARBITRATION  PANEL
SHALL  CONSIDER  THE AVERAGE FULL VALUE PROPERTY TAX RATE OF SUCH PUBLIC
EMPLOYER AND THE AVERAGE FUND BALANCE PERCENTAGE OF SUCH PUBLIC  EMPLOY-
ER.
  (I)  FOR  PURPOSES OF THIS SUBDIVISION, "FULL VALUE PROPERTY TAX RATE"
SHALL MEAN THE AMOUNT TO BE RAISED BY TAX ON  REAL  ESTATE  BY  A  LOCAL
GOVERNMENT IN A GIVEN FISCAL YEAR DIVIDED BY THE FULL VALUATION OF TAXA-
BLE  REAL  ESTATE FOR THAT SAME FISCAL YEAR AS REPORTED TO THE OFFICE OF
THE STATE COMPTROLLER.
  (II) FOR PURPOSES OF THIS SUBDIVISION, "AVERAGE  FULL  VALUE  PROPERTY
TAX  RATE"  SHALL  MEAN THE SUM OF THE FULL VALUE PROPERTY TAX RATES FOR
THE FIVE MOST RECENT FISCAL YEARS DIVIDED BY FIVE.
  (III) FOR PURPOSES OF  THIS  SUBDIVISION,  "FUND  BALANCE  PERCENTAGE"
SHALL MEAN THE TOTAL FUND BALANCE IN THE GENERAL FUND OF A LOCAL GOVERN-
MENT  IN  A GIVEN FISCAL YEAR DIVIDED BY THE TOTAL EXPENDITURES FROM THE
GENERAL FUND FOR THAT SAME FISCAL YEAR AS REPORTED TO THE OFFICE OF  THE
STATE COMPTROLLER.
  (IV)  FOR PURPOSES OF THIS SUBDIVISION, "AVERAGE FUND BALANCE PERCENT-
AGE" SHALL MEAN THE SUM OF THE FUND BALANCE  PERCENTAGES  FOR  THE  FIVE
MOST RECENTLY COMPLETED FISCAL YEARS DIVIDED BY FIVE.
  (C) IF THE AVERAGE FULL VALUE PROPERTY TAX RATE OF SUCH PUBLIC EMPLOY-
ER  IS GREATER THAN THE AVERAGE FULL VALUE PROPERTY TAX RATE OF SEVENTY-
FIVE PERCENT OF COUNTIES, CITIES, TOWNS, AND VILLAGES, WITH LOCAL FISCAL
YEARS ENDING IN THE SAME CALENDAR YEAR AS OF THE MOST RECENTLY AVAILABLE
INFORMATION, THE PUBLIC ARBITRATION PANEL MUST  FIND  THAT  SUCH  PUBLIC
EMPLOYER  IS  A  FISCALLY ELIGIBLE MUNICIPALITY. THE OFFICE OF THE STATE
COMPTROLLER SHALL MAKE PUBLICLY AVAILABLE THE LIST OF COUNTIES,  CITIES,
TOWNS,  AND  VILLAGES  THAT HAVE AN AVERAGE FULL VALUE PROPERTY TAX RATE
THAT MEETS SUCH CRITERIA IN EACH LOCAL FISCAL YEAR. IF A PUBLIC EMPLOYER
HAS NOT REPORTED TO THE OFFICE OF THE STATE COMPTROLLER THE  INFORMATION
NECESSARY  TO  CALCULATE  ITS AVERAGE FULL VALUE PROPERTY TAX RATE, SUCH
PUBLIC EMPLOYER MAY NOT BE DEEMED A FISCALLY ELIGIBLE  MUNICIPALITY  AND
THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY.
  (D)  IF THE AVERAGE FUND BALANCE PERCENTAGE OF SUCH PUBLIC EMPLOYER IS
LESS THAN FIVE PERCENT AND THE STATE COMPTROLLER HAS CERTIFIED THAT  ANY
ADDITIONAL  FUND BALANCES IN FUNDS OTHER THAN THE GENERAL FUND AVAILABLE
FOR PAYMENT OF ARBITRATION AWARDS IN EACH YEAR, IF  ADDED  TO  THE  FUND

S. 5865                             7                            A. 8086

BALANCE  OF  THE  GENERAL FUND, WOULD NOT CAUSE THE AVERAGE FUND BALANCE
PERCENTAGE OF SUCH PUBLIC EMPLOYER TO EXCEED FIVE  PERCENT,  THE  PUBLIC
ARBITRATION  PANEL  MUST  FIND  THAT  SUCH PUBLIC EMPLOYER IS A FISCALLY
ELIGIBLE  MUNICIPALITY.   THE OFFICE OF THE STATE COMPTROLLER SHALL MAKE
PUBLICLY AVAILABLE THE LIST OF COUNTIES,  CITIES,  TOWNS,  AND  VILLAGES
THAT  HAVE  AN  AVERAGE  FUND  BALANCE PERCENTAGE THAT IS LESS THAN FIVE
PERCENT IN EACH LOCAL FISCAL YEAR. IF A PUBLIC EMPLOYER HAS NOT REPORTED
TO THE OFFICE OF THE STATE  COMPTROLLER  THE  INFORMATION  NECESSARY  TO
CALCULATE  ITS AVERAGE FUND BALANCE PERCENTAGE, SUCH PUBLIC EMPLOYER MAY
NOT BE DEEMED A FISCALLY ELIGIBLE MUNICIPALITY  AND  THE  PROVISIONS  OF
THIS SUBDIVISION SHALL NOT APPLY.
  (E) WHEN SUCH PUBLIC EMPLOYER HAS BEEN FOUND TO BE A FISCALLY ELIGIBLE
MUNICIPALITY,  THE  PUBLIC  ARBITRATION PANEL SHALL, FIRST AND FOREMOST,
CONSIDER ABILITY TO PAY BY ASSIGNING A WEIGHT OF SEVENTY PERCENT TO THAT
PORTION OF THE CRITERION CONTAINED WITHIN CLAUSE B OF  SUBPARAGRAPH  (V)
OF  PARAGRAPH (C) OF SUBDIVISION FOUR OF THIS SECTION THAT PERTAINS ONLY
TO THE PUBLIC EMPLOYER'S ABILITY TO PAY.  ALL OTHER  CRITERIA  CONTAINED
IN  SUBPARAGRAPH  (V)  OF  PARAGRAPH  (C)  OF  SUBDIVISION  FOUR OF THIS
SECTION, INCLUDING THAT PORTION OF CLAUSE B OF SUBPARAGRAPH (V) OF PARA-
GRAPH (C) OF SUBDIVISION FOUR OF  THIS  SECTION  THAT  PERTAINS  TO  THE
INTEREST AND WELFARE OF THE PUBLIC, SHALL CONSTITUTE AN AGGREGATE WEIGHT
OF  THIRTY  PERCENT.  ADDITIONALLY,  WITH  RESPECT TO THE TOTAL MONETARY
VALUE OF ANY DETERMINATION, THE  PANEL  MUST  RECOGNIZE  AND  TAKE  INTO
ACCOUNT  IN  ITS DETERMINATION THE CONSTRAINTS, OBLIGATIONS AND REQUIRE-
MENTS IMPOSED BY THE REAL PROPERTY TAX CAP PURSUANT TO  SECTION  THREE-C
OF  THE  GENERAL  MUNICIPAL LAW UPON THE PUBLIC EMPLOYER INVOLVED IN THE
DISPUTE BEFORE THE PANEL.
  (F) THE PROVISIONS OF THIS SUBDIVISION SHALL EXPIRE THREE  YEARS  FROM
JULY FIRST, TWO THOUSAND THIRTEEN.
  S  6.  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 7. This act shall take effect immediately,  provided  that  sections
one,  two  and  three of this act shall take effect on the ninetieth day
after it shall have become a law and sections four and five of this  act
shall  be  deemed  to  have  been in full force and effect on  and after
April 1, 2013; and provided, further, that sections three, four and five
of this act shall apply  to  all  agreements  and  interest  arbitration
determinations  that  expire  before,  on  or after April 1, 2013 except
those (a) where the public employment relations board received  a  peti-
tion  to  refer  the  dispute  to a public arbitration panel pursuant to
subdivision 4 of section 209 of the civil service law  before  June  14,
2013  or  (b)  where  the  public  employment relations board received a
declaration of impasse pursuant to subdivision 4 of section 209  of  the
civil  service  law  on or after April 1, 2013 but on or before June 14,
2013.

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