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

                                  5090

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            February 12, 2015
                               ___________

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 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 AVAIL-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09061-01-5
              

A. 5090                             2

ABLE REVENUE. EVIDENCE PROFFERED BY THE SCHOOL  BOARD  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  CIRCUM-
STANCES.
  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  THIR-
TY-EIGHT HUNDRED FIFTY OF THIS ARTICLE AND IS IN THE PROCESS OF RESTRUC-
TURING OPERATIONS UNDER THE PROVISIONS OF THIS SECTION. DECISIONS ON THE

A. 5090                             3

RETENTION  OF TEACHERS, SHOULD POSITIONS BE ABOLISHED, SHALL BE BASED ON
A NUMBER OF FACTORS INCLUDING, BUT NOT LIMITED TO:   THE 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  PRINCIPAL OR OTHER
BUILDING ADMINISTRATOR IN CHARGE OF THE SCHOOL OR  PROGRAM;  THE  EDUCA-
TIONAL  QUALIFICATIONS  OF  THE TEACHER INCLUDING CURRICULUM SPECIALIZED
EDUCATION, DEGREES, LICENSES, OR  AREAS  OF  EXPERTISE;  THE  LENGTH  OF
SATISFACTORY SERVICE; AND OTHER FACTORS RELATED TO THE TEACHER'S EXPERI-
ENCE  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
THIRTY-EIGHT HUNDRED FIFTY-TWO OF THIS ARTICLE.
  S 2. This act shall take effect immediately and shall expire  December
31, 2018, when upon such date the provisions of this act shall be deemed
repealed.