S T A T E   O F   N E W   Y O R K
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                                  4684

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 5, 2009
                               ___________

Introduced  by  M.  of  A.  EDDINGTON, FIELDS, SWEENEY, BRODSKY, ALESSI,
  JAFFEE, CLARK -- Multi-Sponsored by -- M. of  A.  GABRYSZAK,  LUPARDO,
  PHEFFER -- read once and referred to the Committee on Codes

AN  ACT to amend the penal law, in relation to establishing the crime of
  defrauding a public pension plan and to amend the  education  law,  in
  relation to requiring disclosure and reporting of certain contracts

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

  Section 1. The penal law is amended by adding a new section 190.71  to
read as follows:
S 190.71 DEFRAUDING A PUBLIC PENSION PLAN.
  A PERSON IS GUILTY OF DEFRAUDING A PUBLIC PENSION PLAN WHEN HE OR SHE:
  1. ENGAGES IN A COURSE OF CONDUCT WITH THE INTENT OF OBTAINING A BENE-
FIT  OR  ASSET FROM A PUBLIC PENSION PLAN RELATING TO EMPLOYMENT FOR THE
STATE WHILE DOING BUSINESS OR PROVIDING A  PROFESSIONAL  SERVICE  AS  AN
INDEPENDENT  CONTRACTOR  OR PRIVATE ENTITY WHEN SUCH PERSON IS RECEIVING
COMPENSATION FOR SUCH SERVICE AS AN INDEPENDENT  CONTRACTOR  OR  PRIVATE
ENTITY  AND  SUCH SERVICE IS NOT SUBSTANTIALLY DIFFERENT FROM THE COURSE
OF CONDUCT RELATING TO EMPLOYMENT FOR THE STATE; OR
  2. ENGAGES IN A SCHEME CONSTITUTING A  SYSTEMATIC  ONGOING  COURSE  OF
CONDUCT  WITH  INTENT  OF  OBTAINING  A BENEFIT OR ASSET, OR ASSISTING A
THIRD PARTY TO OBTAIN A BENEFIT OR ASSET, FROM A PUBLIC PENSION PLAN  TO
WHICH HE OR SHE OR THE THIRD PARTY IS NOT OTHERWISE ENTITLED.
  DEFRAUDING A PUBLIC PENSION PLAN IS A CLASS E FELONY.
  S 2. Subdivision 4 of section 1608 of the education law, as amended by
chapter 640 of the laws of 2008, is amended to read as follows:
  4.  Commencing with the proposed budget for the nineteen hundred nine-
ty-eight--ninety-nine  school  year,  such  proposed  budget  shall   be
presented  in three components: a program component, a capital component
and an administrative component which shall be separately delineated  in
accordance  with regulations of the commissioner after consultation with

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07033-01-9
              

A. 4684                             2

local school district  officials.  The  administrative  component  shall
include,  but  need not be limited to, office and central administrative
expenses, traveling expenses and all compensation, salaries [and], bene-
fits  AND ASSETS of all school administrators [and], EMPLOYEES, TEACHERS
UNDER EXISTING EMPLOYMENT  CONTRACTS,  supervisors,  including  business
administrators,  superintendents of schools and deputy, assistant, asso-
ciate or other superintendents under all existing  employment  contracts
or collective bargaining agreements, any and all expenditures associated
with  the  operation  of the office of trustee or board of trustees, the
office of the superintendent of  schools,  general  administration,  the
school  business office, consulting costs not directly related to direct
student services and programs, planning  and  all  other  administrative
activities. The program component shall include, but need not be limited
to, all program expenditures of the school district, including the sala-
ries  and benefits of teachers and any school administrators or supervi-
sors who spend a majority of their time performing teaching duties,  and
all  transportation  operating  expenses.    The capital component shall
include, but need not be limited to, all  transportation  capital,  debt
service,  and  lease expenditures; costs resulting from judgments in tax
certiorari proceedings or the payment of awards  from  court  judgments,
administrative  orders or settled or compromised claims; and all facili-
ties costs of the school district, including facilities  lease  expendi-
tures,  the  annual  debt  service  and  total  debt  for all facilities
financed by bonds and notes of the school district,  and  the  costs  of
construction, acquisition, reconstruction, rehabilitation or improvement
of  school  buildings, provided that such budget shall include a rental,
operations and maintenance section that includes base rent costs,  total
rent  costs, operation and maintenance charges, cost per square foot for
each facility leased by the school district, and any  and  all  expendi-
tures   associated   with   custodial  salaries  and  benefits,  service
contracts, supplies, utilities, and maintenance and  repairs  of  school
facilities.  For  the  purposes  of  the development of a budget for the
nineteen hundred ninety-eight--ninety-nine school year, the  trustee  or
board  of  trustees  shall  separate the district's program, capital and
administrative costs for the nineteen hundred ninety-seven--ninety-eight
school year in the manner as if  the  budget  for  such  year  had  been
presented in three components.
  S  3.   Subdivision 4 of section 1716 of the education law, as amended
by chapter 640 of the laws of 2008, is amended to read as follows:
  4. Commencing with the proposed budget for the nineteen hundred  nine-
ty-eight--ninety-nine   school  year,  such  proposed  budget  shall  be
presented in three components: a program component, a capital  component
and  an administrative component which shall be separately delineated in
accordance with regulations of the commissioner after consultation  with
local  school  district  officials.  The  administrative component shall
include, but need not be limited to, office and  central  administrative
expenses, traveling expenses and all compensation, salaries [and], bene-
fits  AND ASSETS of all school administrators [and], EMPLOYEES, TEACHERS
UNDER EXISTING EMPLOYMENT  CONTRACTS,  supervisors,  including  business
administrators,  superintendents of schools and deputy, assistant, asso-
ciate or other superintendents under all existing  employment  contracts
or collective bargaining agreements, any and all expenditures associated
with  the  operation of the board of education, the office of the super-
intendent  of  schools,  general  administration,  the  school  business
office, consulting costs not directly related to direct student services
and  programs,  planning  and  all other administrative activities.  The

A. 4684                             3

program component shall include, but need not be limited to, all program
expenditures of the school district, including the salaries and benefits
of teachers and any school administrators or  supervisors  who  spend  a
majority  of  their time performing teaching duties, and all transporta-
tion operating expenses. The capital component shall include,  but  need
not  be  limited to, all transportation capital, debt service, and lease
expenditures;  costs  resulting  from  judgments   in   tax   certiorari
proceedings  or  the payment of awards from court judgments, administra-
tive orders or settled or compromised claims; and all  facilities  costs
of  the  school  district,  including facilities lease expenditures, the
annual debt service and total debt for all facilities financed by  bonds
and  notes of the school district, and the costs of construction, acqui-
sition, reconstruction, rehabilitation or improvement of  school  build-
ings,  provided  that such budget shall include a rental, operations and
maintenance section that includes base rent  costs,  total  rent  costs,
operation and maintenance charges, cost per square foot for each facili-
ty  leased  by the school district, and any and all expenditures associ-
ated with custodial salaries and benefits, service contracts,  supplies,
utilities,  and  maintenance  and  repairs of school facilities. For the
purposes of the development of a budget for the nineteen  hundred  nine-
ty-eight--ninety-nine school year, the board of education shall separate
the  district's  program, capital and administrative costs for the nine-
teen hundred ninety-seven--ninety-eight school year in the manner as  if
the budget for such year had been presented in three components.
  S  4.  The  education law is amended by adding a new section 2116-e to
read as follows:
  S 2116-E. REPORTING COMMITTEES. 1. EVERY SCHOOL DISTRICT, EXCEPT THOSE
EMPLOYING FEWER THAN EIGHT TEACHERS, SHALL ESTABLISH BY A RESOLUTION  OF
THE  TRUSTEES  OR  BOARD  OF EDUCATION A LOCAL SCHOOL DISTRICT REPORTING
COMMITTEE TO OVERSEE ALL  PROPOSED  CONTRACTS  OF  THE  SCHOOL  DISTRICT
EMPLOYEES, BARGAINING UNITS, ADMINISTRATORS AND SUPERINTENDENTS AND MAKE
A  REPORT  TO THE TRUSTEES OR BOARD ON SUCH CONTRACTS. SUCH REPORT SHALL
INCLUDE THE DETAILS OF THE CONTRACT INCLUDING BUT  NOT  LIMITED  TO  ALL
COMPENSATION,  SALARIES,  BENEFITS  AND ASSETS OF ALL SCHOOL ADMINISTRA-
TORS,  SUPERINTENDENTS,  EMPLOYEES   AND   TEACHERS   UNDER   EMPLOYMENT
CONTRACTS.
  2.  THE REPORTING COMMITTEE SHALL BE ESTABLISHED NO LATER THAN JANUARY
FIRST, TWO THOUSAND TEN AS A COMMITTEE OF THE TRUSTEES OR BOARD,  AS  AN
ADVISORY COMMITTEE, OR AS A COMMITTEE OF THE WHOLE.
  3. THE REPORTING COMMITTEE SHALL CONSIST OF AT LEAST THREE MEMBERS, AT
LEAST  TWO OF WHOM SHALL NOT BE A TRUSTEE OR BOARD MEMBER. THE REPORTING
COMMITTEE MEMBERS SHALL SERVE WITHOUT  COMPENSATION.  EMPLOYEES  OF  THE
SCHOOL  DISTRICT ARE PROHIBITED FROM SERVING ON THE REPORTING COMMITTEE.
A MEMBER OF A REPORTING COMMITTEE SHALL  BE  DEEMED  A  SCHOOL  DISTRICT
OFFICER FOR THE PURPOSES OF SECTIONS THIRTY-EIGHT HUNDRED ELEVEN THROUGH
THIRTY-EIGHT HUNDRED THIRTEEN OF THIS CHAPTER, BUT SHALL NOT BE REQUIRED
TO BE A RESIDENT OF THE SCHOOL DISTRICT.
  4.  THE ROLE OF A REPORTING COMMITTEE SHALL BE ADVISORY AND ANY RECOM-
MENDATIONS IT PROVIDES TO THE TRUSTEES OR BOARD UNDER  SUBDIVISION  FIVE
OF  THIS SECTION SHALL NOT SUBSTITUTE FOR ANY REQUIRED REVIEW AND ACTION
BY THE TRUSTEES OR BOARD OF EDUCATION.
  5. IT SHALL BE THE RESPONSIBILITY OF THE REPORTING COMMITTEE TO:
  (A) REVIEW EVERY CONTRACT BETWEEN  THE  DISTRICT  AND  ANY  EMPLOYEES,
BARGAINING  UNITS,  ADMINISTRATORS  AND SUPERINTENDENTS NEGOTIATED AFTER
JANUARY FIRST, TWO THOUSAND TEN;

A. 4684                             4

  (B) RECEIVE AND REVIEW PROPOSED CONTRACTS BETWEEN THE DISTRICT AND ANY
EMPLOYEES, BARGAINING UNITS, ADMINISTRATORS AND SUPERINTENDENTS PRIOR TO
SUCH CONTRACTS' APPROVAL; AND
  (C)  PROVIDE  RECOMMENDATIONS  TO  THE TRUSTEES OR BOARD REGARDING THE
SALARY, FRINGE BENEFITS  AND  OTHER  FORMS  OF  COMPENSATION  GIVEN  AND
PROPOSED  TO  BE  GIVEN TO ALL SCHOOL DISTRICT EMPLOYEES, ADMINISTRATORS
AND SUPERINTENDENTS.
  6. NOTWITHSTANDING ANY PROVISION OF ARTICLE SEVEN OF THE PUBLIC  OFFI-
CERS  LAW  OR ANY OTHER LAW TO THE CONTRARY, A SCHOOL DISTRICT REPORTING
COMMITTEE MAY CONDUCT AN  EXECUTIVE  SESSION  PURSUANT  TO  SECTION  ONE
HUNDRED  FIVE  OF  THE  PUBLIC OFFICERS LAW PERTAINING TO ANY MATTER SET
FORTH IN PARAGRAPHS (A) AND (B) OF SUBDIVISION FIVE OF THIS SECTION.
  7. THE COMMISSIONER  IS  AUTHORIZED  TO  PROMULGATE  REGULATIONS  WITH
RESPECT TO REPORTING COMMITTEES AS ARE NECESSARY FOR THE PROPER PERFORM-
ANCE OF THEIR DUTIES.
  S  5.  The  education law is amended by adding a new section 2009-a to
read as follows:
  S 2009-A. ADDITIONAL REQUIREMENTS OF NOTICE PRIOR TO AUTHORIZATION  OF
SCHOOL  DISTRICT EMPLOYMENT CONTRACTS. 1. WHERE ANY EMPLOYMENT CONTRACT,
COLLECTIVE BARGAINING AGREEMENT,  OR  AMENDMENTS  TO  SUCH  CONTRACT  OR
AGREEMENT  IS  TO  BE  SUBMITTED  TO  A DISTRICT MEETING FOR A VOTE, THE
SCHOOL DISTRICT BOARD OR TRUSTEES SHALL GIVE NOTICE, AT LEAST FOUR WEEKS
PRIOR TO SUCH MEETING, THROUGH A DISTRICT-WIDE MAILING,  OF  THE  AVAIL-
ABILITY  OF  THE  CONTRACT,  AGREEMENT, OR AMENDMENT AT PUBLIC LIBRARIES
WITHIN THE DISTRICT, AT THE SCHOOL DISTRICT OFFICES AND  ON  THE  SCHOOL
DISTRICT'S INTERNET WEBSITE, IF ONE EXISTS.
  2.  PRIOR TO ANY EMPLOYMENT CONTRACT, COLLECTIVE BARGAINING AGREEMENT,
OR AMENDMENTS TO  SUCH  CONTRACT  OR  AGREEMENT  BEING  SUBMITTED  TO  A
DISTRICT MEETING FOR A VOTE, THE SCHOOL DISTRICT BOARD OR TRUSTEES SHALL
GIVE  NOTICE,  AT  LEAST  FOUR  WEEKS  PRIOR  TO SUCH MEETING, THROUGH A
DISTRICT-WIDE MAILING, OF THE AVAILABILITY OF THE  RECOMMENDATIONS  MADE
BY  THE  REPORTING  COMMITTEE,  PURSUANT  TO  SECTION TWENTY-ONE HUNDRED
SIXTEEN-E OF THIS CHAPTER, AT PUBLIC LIBRARIES WITHIN THE  DISTRICT,  AT
THE  SCHOOL  DISTRICT  OFFICES  AND  ON  THE  SCHOOL DISTRICT'S INTERNET
WEBSITE, IF ONE EXISTS.
  S 6. This act shall take effect on the ninetieth day  after  it  shall
have become a law.