S T A T E   O F   N E W   Y O R K
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                                   5454
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 12, 2019
                                ___________
 
 Introduced  by M. of A. GOODELL -- Multi-Sponsored by -- M. of A. BLANK-
   ENBUSH, CROUCH, MORINELLO, ORTIZ -- read  once  and  referred  to  the
   Committee 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 (§§ 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.
   § 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09021-01-9

 A. 5454                             2
 
 BOARD SHALL PROVIDE EVIDENCE THAT PROJECTED EXPENSES EXCEED  ALL  AVAIL-
 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.
   § 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.
   §  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-

 A. 5454                             3
 
 TURING 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 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.
   §  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.
   § 2. This act shall take effect immediately and shall expire  December
 31, 2022, when upon such date the provisions of this act shall be deemed
 repealed.