S T A T E   O F   N E W   Y O R K
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                                   25

                     Twentieth Extraordinary Session

                          I N  A S S E M B L Y

                            December 2, 2009
                               ___________

A  BUDGET  BILL,  submitted by the Governor pursuant to article seven of
  the Constitution -- read once and referred to the  Committee  on  Ways
  and Means

AN  ACT  to  amend  the public health law and chapter 109 of the laws of
  2006, amending the social services law  and  other  laws  relating  to
  Medicaid  reimbursement  rate  settings, in relation to establishing a
  workgroup pertaining to Medicaid reimbursement rate-setting for  resi-
  dential  health  care  facilities for future periods and providing for
  periodic reports by such group;  and  relating  to  the  reduction  of
  certain payments under the medical assistance program and notification
  timeframes  (Part  A);  and  to  amend  the education law, the general
  municipal law and chapter 57 of the laws of 2009 amending  the  educa-
  tion  law  and other laws relating to special apportionment for salary
  expenses, in relation to creating the gap elimination adjustment (Part
  B)

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

  Section  1.  This  act enacts into law major components of legislation
which are necessary to implement the state fiscal plan for the 2009-2010
state fiscal year. Each component is  wholly  contained  within  a  Part
identified  as Parts A through B. The effective date for each particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part, includ-
ing the effective date of the Part, which makes a reference to a section
"of this act", when used in connection with that  particular  component,
shall  be  deemed  to mean and refer to the corresponding section of the
Part in which it is found. Section three of  this  act  sets  forth  the
general effective date of this act.

                                 PART A

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12176-01-9

              

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  Section  1.  Subparagraph  (vi)  of  paragraph (a) of subdivision 2 of
section 2807-d of the public health law, as added by section 49 of  part
B of chapter 58 of the laws of 2009, is amended to read as follows:
  (vi)  Notwithstanding any contrary provisions of this paragraph or any
other provision of law or regulation, for general hospitals the  assess-
ment  shall  be  thirty-five  hundredths  of one percent of each general
hospital's gross receipts received from all patient  care  services  and
other  operating  income  on a cash basis for periods on and after April
first, two thousand  nine,  for  hospital  or  health-related  services,
including,  but  not limited to inpatient services, outpatient services,
emergency services, referred ambulatory services and ambulatory surgical
services, but not including residential health care facilities  services
or  home  health  care  services, PROVIDED, HOWEVER, THAT FOR THE PERIOD
DECEMBER FIRST, TWO THOUSAND NINE THROUGH MARCH THIRTY-FIRST  TWO  THOU-
SAND  ELEVEN,  SUCH  ASSESSMENT  FOR SUCH SERVICES SHALL BE SEVENTY-FIVE
HUNDREDTHS  OF  ONE  PERCENT  OF  EACH  SUCH  GENERAL  HOSPITAL'S  GROSS
RECEIPTS,   PROVIDED   FURTHER,  HOWEVER,  THAT  AMOUNTS  IN  EXCESS  OF
THIRTY-FIVE HUNDREDTHS OF ONE PERCENT SHALL BE ASSESSED ONLY WITH REGARD
TO GROSS RECEIPTS FOR INPATIENT CARE SERVICES AND OTHER OPERATING INCOME
ON A CASH BASIS AND SHALL NOT BE ASSESSED WITH REGARD TO GROSS  RECEIPTS
FOR  OUTPATIENT  SERVICES,  AND  PROVIDED  FURTHER, HOWEVER, THAT ON AND
AFTER APRIL FIRST, TWO THOUSAND ELEVEN, SUCH ASSESSMENT SHALL BE REDUCED
TO THIRTY-FIVE HUNDREDTHS OF ONE PERCENT.
  S 2. Subdivision 10 of section 2807-d of  the  public  health  law  is
amended by adding a new paragraph (f) to read as follows:
  (F)  PROVIDED,  HOWEVER,  THAT, SUBJECT TO THE AVAILABILITY OF FEDERAL
FINANCIAL PARTICIPATION,  FOR  THE  PURPOSES  OF  DETERMINING  RATES  OF
PAYMENT  PURSUANT  TO THIS ARTICLE FOR GENERAL HOSPITALS, THE ASSESSMENT
IMPOSED PURSUANT TO SUBPARAGRAPH (VI) OF PARAGRAPH  (A)  OF  SUBDIVISION
TWO  OF  THIS  SECTION SHALL, INSOFAR AS SUCH ASSESSMENT IS IN EXCESS OF
THIRTY-FIVE HUNDREDTHS OF ONE PERCENT OF EACH  SUCH  GENERAL  HOSPITAL'S
GROSS  RECEIPTS,  BE  A  REIMBURSABLE  COST TO BE REFLECTED AS TIMELY AS
PRACTICABLE, AND SUBSEQUENTLY RECONCILED TO ACTUAL  COST,  IN  RATES  OF
PAYMENT APPLICABLE WITHIN THE ASSESSMENT PERIOD.
  S  3. Notwithstanding paragraph (b) of subdivision 2-b and subdivision
2-c of section 2808 of the public health law, section 2  of  part  D  of
chapter  58 of the laws of 2009, or any other contrary provision of law,
the commissioner of health, with the approval of  the  director  of  the
budget,  shall  make such proportional adjustments to rates of payments,
as computed pursuant to paragraph (b) of subdivision 2-b of section 2808
of the public health law and as modified by section 2 of part D of chap-
ter 58 of the laws of 2009, for the  period  December  1,  2009  through
March  31, 2010, such that the aggregate total increase in such rates of
payment for the period April 1, 2009 through March 31,  2010,  shall  be
reduced from two hundred ten million dollars ($210,000,000) to an amount
no   greater  than  fifty-two  million  five  hundred  thousand  dollars
($52,500,000), provided, however, that the commissioner  of  health  and
the  director of the budget shall make such further proportional adjust-
ments to such rates of payment for the  period  April  1,  2010  through
March 31, 2011 as are necessary to ensure that such rates for such peri-
od  do  not, in aggregate, reflect any further net increase in excess of
one  hundred  fifty-seven  million   five   hundred   thousand   dollars
($157,500,000)  from  the rates in effect for the preceding state fiscal
year, and provided further, however, that, notwithstanding any  contrary
provision  of section 2 of part D of chapter 58 of the laws of 2009, the
case mix adjustments authorized pursuant to subparagraph (ii)  of  para-

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graph  (b)  of  subdivision 2-b of section 2808 of the public health law
and scheduled pursuant to such subparagraph (ii) for  January  of  2010,
shall  be implemented in accordance with the provisions of such subpara-
graph (ii).
  S  4.  Subparagraph (i) of paragraph (b) of subdivision 2-b of section
2808 of the public health law, as amended by section  3  of  part  D  of
chapter 58 of the laws of 2009, is amended to read as follows:
  (i)  Subject  to the provisions of subparagraphs (ii) through (xiv) of
this paragraph, for periods on and after April first, two thousand  nine
through  [March  thirty-first, two thousand ten] FEBRUARY TWENTY-EIGHTH,
TWO THOUSAND ELEVEN the operating cost component  of  rates  of  payment
shall  reflect  allowable operating costs as reported in each facility's
cost report for the two thousand two  calendar  year,  as  adjusted  for
inflation  on  an  annual  basis  in accordance with the methodology set
forth in paragraph  (c)  of  subdivision  ten  of  section  twenty-eight
hundred  seven-c  of  this  article,  provided,  however, that for those
facilities which do not receive a per diem add-on adjustment pursuant to
subparagraph (ii) of paragraph (a) of this subdivision, rates  shall  be
further  adjusted to include the proportionate benefit, as determined by
the commissioner, of the expiration of the opening paragraph  and  para-
graph (a) of subdivision sixteen of this section and of paragraph (a) of
subdivision  fourteen  of  this  section,  and provided further that the
operating cost component of rates of payment for those facilities  which
did  not  receive  a per diem adjustment in accordance with subparagraph
(ii) of paragraph (a) of this subdivision shall not  be  less  than  the
operating  component  such facilities received in the two thousand eight
rate period, as adjusted for inflation on an annual basis in  accordance
with  the  methodology  set forth in paragraph (c) of subdivision ten of
section  twenty-eight  hundred  seven-c  of  this  article  and  further
provided, however, that rates for facilities whose operating cost compo-
nent  reflects base year costs subsequent to January first, two thousand
two shall have rates computed in accordance with this paragraph, utiliz-
ing allowable operating costs as reported in such subsequent  base  year
period, and trended forward to the rate year in accordance with applica-
ble inflation factors.
  S  5.  The opening paragraph and subparagraph (vi) of paragraph (a) of
subdivision 2-c of section 2808 of the public health law,  as  added  by
section  5  of  part D of chapter 58 of the laws of 2009, are amended to
read as follows:
  Notwithstanding any inconsistent provision  of  this  section  or  any
other  contrary  provision  of  law  and  subject to the availability of
federal financial participation, the operating costs of rates of payment
by governmental agencies for inpatient services provided by  residential
health  care  facilities  on  and  after [April first, two thousand ten]
MARCH FIRST, TWO THOUSAND ELEVEN shall be determined in accordance  with
the following:
  (vi) Notwithstanding subparagraph (i) of this paragraph, the operating
cost  component  of the rates, effective [April first, two thousand ten]
MARCH FIRST, TWO THOUSAND ELEVEN for the following categories of facili-
ties, as established pursuant to applicable regulations,  shall  reflect
the  rates  in  effect  for  such facilities on [March thirty-first, two
thousand ten,] FEBRUARY TWENTY-EIGHTH, TWO THOUSAND ELEVEN, as  adjusted
for  inflation  in accordance with applicable statutes: (A) AIDS facili-
ties or discrete AIDS units within facilities, (B)  discrete  units  for
residents receiving care in a long-term inpatient rehabilitation program
for  traumatic  brain  injured  persons,  (C)  discrete  units providing

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specialized programs for residents requiring  behavioral  interventions,
(D) discrete units for long-term ventilator dependent residents, and (E)
facilities  or  discrete  units within facilities that provide extensive
nursing,  medical,  psychological and counseling support services solely
to children. Such rate shall remain in effect until the  department,  in
consultation  with  representatives  of  the  nursing  home industry, as
selected by the commissioner, develops a regional pricing or alternative
methodology for determining such rates.
  S 6. Section 48 of part C of chapter 109 of the laws of 2006, amending
the social services law and other laws relating to  Medicaid  reimburse-
ment  rate  settings, as amended by section 6 of part D of chapter 58 of
the laws of 2009, is amended to read as follows:
  S 48. Notwithstanding any contrary provision of law, the  commissioner
of  health  shall,  by no later than May 15, 2007, establish a workgroup
pertaining to Medicaid reimbursement rate-setting for residential health
care facilities for future periods, including, but not limited  to,  the
following areas:
  (a)  operating costs that should be considered allowable in the devel-
opment of regional prices;
  (b) identification of appropriate cost differentials among  facilities
based  on  factors  including,  but  not  limited to, size, affiliation,
location, public versus non-public, facility  layout,  culture  exchange
initiatives and labor costs, including the most appropriate mechanism to
adjust  rates  of  payment  to  reflect  appropriate  cost differentials
related to direct care staffing, including  adjustments  to  the  direct
component of the operating cost component of such rate, establishment of
a  quality  care incentive pool pursuant to subdivision (2-c) of section
2808 of the public health law or other mechanisms;
  (c) reimbursement for facilities providing care to  specialized  popu-
lations with specialized care needs;
  (d)  the  relationship  between facility spending on various costs and
quality of care and patient outcomes;
  (e) appropriate regions to be utilized;
  (f)  the  reasons  underlying  the  existing  proportion  of  Medicaid
patients to non-Medicaid patients in New York facilities;
  (g) issues related to Medicare;
  (h) impact of planned rightsizing of the acute care system;
  (i) impact of planned rightsizing of nursing home system;
  (j) impact of using Medicaid only case mix; and
  (k) other issues as determined by the commissioner.
  The  members of the workgroup shall include department of health staff
and representatives of statewide associations representing the  residen-
tial health care facility industry in New York, organizations represent-
ing  employees,  and,  by May thirty-first, two thousand nine, advocates
for residential health care facility residents  and  representatives  of
regional  associations representing the residential health care facility
industry in New York.  The workgroup shall work in consultation with the
assembly and the senate.  The commissioner of health shall  appoint  the
chair of the workgroup and designate such employees of the department of
health as are reasonably necessary to provide necessary data and support
services  to  the workgroup. The commissioner of health shall submit [an
interim] A report summarizing  the  workgroup's  deliberations  and  the
commissioner  of health's recommendations to the governor, the temporary
president of the senate, the speaker of the assembly, and  the  minority
leaders of the senate and the assembly by [December fifteenth, two thou-
sand  nine, and a subsequent report shall be submitted to these individ-

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uals no later than February fifteenth, two thousand ten] OCTOBER  FIRST,
TWO  THOUSAND TEN.   The workgroup shall continue until December thirty-
first, two thousand [ten] ELEVEN to evaluate the implementation  of  the
new system.
  S  7. Notwithstanding any inconsistent provision of law, rule or regu-
lation, for purposes of implementing the provisions of the public health
law and the social services law, references to titles XIX and XXI of the
federal social security act in the public  health  law  and  the  social
services  law  shall be deemed to include and also to mean any successor
titles thereto under the federal social security act.
  S 8. Notwithstanding any inconsistent provision of law, rule or  regu-
lation, the effectiveness of the provisions of sections 2807 and 3614 of
the  public health law, section 18 of chapter 2 of the laws of 1988, and
18 NYCRR 505.14(h), as they relate to time frames for  notice,  approval
or  certification  of rates of payment, are hereby suspended and without
force or effect for purposes of implementing the provisions of this act.
  S 9. This act shall take effect immediately, provided however that:
  1. any rules or regulations necessary to implement the  provisions  of
this  act  may be promulgated and any procedures, forms, or instructions
necessary for such implementation may be adopted and issued on or  after
the date this act shall have become a law;
  2. this act shall not be construed to alter, change, affect, impair or
defeat any rights, obligations, duties or interests accrued, incurred or
conferred prior to the effective date of this act;
  3.  the commissioner of health and the superintendent of insurance and
any appropriate council may take any steps necessary to  implement  this
act prior to its effective date;
  4. notwithstanding any inconsistent provision of the state administra-
tive  procedure  act  or any other provision of law, rule or regulation,
the commissioner of health and the superintendent of insurance  and  any
appropriate  council is authorized to adopt or amend or promulgate on an
emergency basis any regulation he or  she  or  such  council  determines
necessary to implement any provision of this act on its effective date;
  5.  the  provisions of this act shall become effective notwithstanding
the failure of the commissioner  of  health  or  the  superintendent  of
insurance  or  any  council  to adopt or amend or promulgate regulations
implementing this act.

                                 PART B

  Section 1. The education law is amended by adding a new section  308-a
to read as follows:
  S  308-A.  SPECIAL  PROVISIONS;  MANDATES. 1. AS USED IN THIS SECTION,
"MANDATE" MEANS (A) ANY STATE LAW, RULE OR REGULATION  WHICH  CREATES  A
NEW  PROGRAM  OR  REQUIRES  A  HIGHER  LEVEL  OF SERVICE FOR AN EXISTING
PROGRAM WHICH A SCHOOL DISTRICT, ORGANIZED EITHER  BY  SPECIAL  LAWS  OR
PURSUANT TO THE PROVISIONS OF A GENERAL LAW, IS REQUIRED TO PROVIDE, OR
  (B)  ANY  GENERAL  LAW  WHICH  GRANTS  A NEW PROPERTY TAX EXEMPTION OR
INCREASES AN EXISTING PROPERTY  TAX  EXEMPTION  WHICH  ANY  SUCH  SCHOOL
DISTRICT IS REQUIRED TO PROVIDE.
  2.  IN  THE  EVENT  THAT  A MANDATE WHICH IMPOSES A COST UPON A SCHOOL
DISTRICT IS CREATED AFTER THE ADOPTION OF A SCHOOL BUDGET, SUCH  MANDATE
SHALL  BE  IMPLEMENTED  NO SOONER THAN THE FOLLOWING YEAR FOR WHICH SUCH
SCHOOL BUDGET WAS ADOPTED.
  3. NOTWITHSTANDING SUBDIVISION TWO OF THIS SECTION, SUCH A MANDATE CAN
BE IMPOSED IF:

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  (A) THE MANDATE IS PROVIDED AT THE OPTION OF THE SCHOOL DISTRICT UNDER
A LAW, REGULATION, RULE OR ORDER THAT IS PERMISSIVE RATHER THAN MANDATO-
RY;
  (B)  THE MANDATE IS REQUIRED BY, OR ARISES FROM, AN EXECUTIVE ORDER OF
THE GOVERNOR EXERCISING HIS OR HER EMERGENCY POWERS; OR
  (C) THE MANDATE IS REQUIRED BY STATUTE OR EXECUTIVE ORDER THAT  IMPLE-
MENTS A FEDERAL LAW OR REGULATION AND RESULTS FROM COSTS MANDATED BY THE
FEDERAL GOVERNMENT TO BE BORNE AT THE LOCAL LEVEL, UNLESS THE STATUTE OR
EXECUTIVE  ORDER  IMPOSES  COSTS  WHICH EXCEED THE COSTS MANDATED BY THE
FEDERAL GOVERNMENT.
  S 2. Subdivision 1 of section 3609-a of the education law  is  amended
by adding a new paragraph d to read as follows:
  D.  GAP  ELIMINATION  ADJUSTMENT  AND  SUPPLEMENTAL  DEFICIT REDUCTION
ASSESSMENT FOR TWO THOUSAND NINE--TWO  THOUSAND  TEN  SCHOOL  YEAR.  (1)
NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW TO THE CONTRARY, THE STATE
COMPTROLLER SHALL REDUCE PAYMENTS DUE TO EACH DISTRICT FOR THE TWO THOU-
SAND NINE--TWO THOUSAND TEN SCHOOL YEAR PURSUANT TO THIS SECTION  BY  AN
AMOUNT  EQUAL TO THE GAP ELIMINATION ADJUSTMENT AND SUPPLEMENTAL DEFICIT
REDUCTION ASSESSMENT COMPUTED FOR SUCH DISTRICT, AND SUCH  AMOUNT  SHALL
BE  DEDUCTED  FROM  MONEYS APPORTIONED FOR THE PURPOSES OF PAYMENTS MADE
PURSUANT TO THIS SECTION AND IF THE REDUCTION IS GREATER THAN THE SUM OF
THE  AMOUNTS  AVAILABLE  FOR  SUCH  DEDUCTIONS,  THE  REMAINDER  OF  THE
REDUCTION  SHALL  BE  WITHHELD FROM PAYMENTS SCHEDULED TO BE MADE TO THE
DISTRICT PURSUANT TO THIS SECTION FOR THE TWO THOUSAND TEN--TWO THOUSAND
ELEVEN SCHOOL YEAR, AND PROVIDED FURTHER THAT AN  AMOUNT  EQUAL  TO  THE
AMOUNT  OF  SUCH  DEDUCTION  SHALL  BE  DEEMED  TO HAVE BEEN PAID TO THE
DISTRICT PURSUANT TO THIS SECTION FOR THE  SCHOOL  YEAR  IN  WHICH  SUCH
DEDUCTION  IS  MADE. THE COMMISSIONER SHALL COMPUTE SUCH GAP ELIMINATION
ADJUSTMENT AND  SUPPLEMENTAL  DEFICIT  REDUCTION  ASSESSMENT  AND  SHALL
PROVIDE  A  SCHEDULE  OF  SUCH  REDUCTION IN PAYMENTS TO THE STATE COMP-
TROLLER, THE DIRECTOR OF THE BUDGET, THE CHAIR  OF  THE  SENATE  FINANCE
COMMITTEE AND THE CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE.
  (2) THE GAP ELIMINATION ADJUSTMENT FOR TWO THOUSAND NINE--TWO THOUSAND
TEN  SCHOOL  YEAR  SHALL BE THE PRODUCT OF THE TOTAL AID FOR ADJUSTMENT,
MULTIPLIED BY ONE AND  FIVE  HUNDRED  EIGHTY-TWO  ONE-THOUSANDTHS  OF  A
PERCENT  (0.01582). FOR THE PURPOSES OF SUCH COMPUTATION, "TOTAL AID FOR
ADJUSTMENT" SHALL MEAN THE SUM OF THE AMOUNTS SET FORTH FOR EACH  SCHOOL
DISTRICT AS "2009-10 FORMULA TOTAL" UNDER THE HEADING "2009-10 BASE YEAR
AIDS" IN THE SCHOOL AID COMPUTER LISTING PRODUCED BY THE COMMISSIONER IN
SUPPORT  OF A CHAPTER OF THE LAWS OF TWO THOUSAND NINE ENACTING SUCH GAP
ELIMINATION ADJUSTMENT.
  (3) THE SUPPLEMENTAL DEFICIT REDUCTION ASSESSMENT SHALL BE COMPUTED AS
THE PRODUCT OF THIRTY-FIVE AND SIXTY-TWO  ONE-HUNDREDTHS  OF  A  PERCENT
(0.3562)  MULTIPLIED  BY  THE  ABSOLUTE  VALUE  OF THE DEFICIT REDUCTION
ASSESSMENT ESTABLISHED PURSUANT TO PARAGRAPH C OF THIS SUBDIVISION.
  S 3. Supplemental deficit reduction assessment restoration.   Notwith-
standing any other provision of law to the contrary, apportionments from
this section shall be supported from funds appropriated for such purpose
from the state fiscal stabilization fund-education fund as funded by the
American recovery and reinvestment act of 2009. For the purposes of this
section  the term "fiscal year", followed by a reference to a year shall
mean the period from July first of the preceding year to June  thirtieth
of the calendar year referenced.
  Funds  shall be apportioned to each school district in an amount equal
to the supplemental deficit reduction assessment  computed  pursuant  to

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subparagraph  3 of paragraph d of subdivision 1 of section 3609-a of the
education law.
  Each district shall be eligible, pursuant to applicable federal rules,
regulations  and guidelines, for a payment for the 2009-2010 school year
of up to seventy percent (0.7) of such funds on or after  the  effective
date  of  this  act and up to an additional thirty percent (0.3) of such
funds on or after April 1, 2010.
  S 4.  Paragraph e of subdivision 1 of section 211-d of  the  education
law,  as  added  by  section  2-a of part A of chapter 57 of the laws of
2009, is amended to read as follows:
  e. Notwithstanding paragraphs a and b of this  subdivision,  a  school
district  that  submitted a contract for excellence for the two thousand
eight--two thousand nine school year shall submit a contract for  excel-
lence  for  the  two  thousand  nine--two  thousand  ten  school year in
conformity with the requirements of subparagraph (vi) of paragraph a  of
subdivision  two  of this section unless all schools in the district are
identified as in good standing.  PROVIDED, HOWEVER, NOTWITHSTANDING  ANY
OTHER  PROVISION  OF  THIS  SECTION  TO  THE  CONTRARY, THE AMOUNT TO BE
EXPENDED ON APPROVED PROGRAMS AND ACTIVITIES IN SUCH CONTRACT FOR EXCEL-
LENCE FOR THE TWO THOUSAND NINE--TWO THOUSAND TEN SCHOOL YEAR  SHALL  BE
NOT  LESS THAN THE PRODUCT OF THE AMOUNT APPROVED BY THE COMMISSIONER IN
THE DISTRICT'S CONTRACT FOR EXCELLENCE FOR THE BASE YEAR, MULTIPLIED  BY
THE  DISTRICT'S "GAP ELIMINATION ADJUSTMENT PERCENTAGE". FOR PURPOSES OF
THIS PARAGRAPH, THE "GAP ELIMINATION  ADJUSTMENT  PERCENTAGE"  SHALL  BE
CALCULATED AS THE SUM OF ONE MINUS THE QUOTIENT OF THE SCHOOL DISTRICT'S
"GAP  ELIMINATION  ADJUSTMENT"  AS  COMPUTED  PURSUANT TO PARAGRAPH D OF
SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED  NINE-A  OF  THIS  CHAPTER
DIVIDED  BY  THE  TOTAL AID FOR ADJUSTMENT COMPUTED PURSUANT TO SUBPARA-
GRAPH TWO OF PARAGRAPH  D  OF  SUBDIVISION  ONE  OF  SECTION  THIRTY-SIX
HUNDRED NINE-A OF THIS CHAPTER.
  S  5.  Section 6-p of the general municipal law is amended by adding a
new subdivision 10 to read as follows:
  10. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE  GOVERN-
ING  BOARD  OF  A SCHOOL DISTRICT MAY, DURING THE TWO THOUSAND NINE--TWO
THOUSAND TEN SCHOOL YEAR, AUTHORIZE A WITHDRAWAL FROM THIS  FUND  IN  AN
AMOUNT NOT TO EXCEED THE LESSER OF: (A) THE DOLLAR VALUE OF EXCESS FUND-
ING  IN  THE  FUND  AS DETERMINED BY THE COMPTROLLER PURSUANT TO SECTION
THIRTY-THREE OF THIS CHAPTER OR (B) THE AMOUNT OF THE SCHOOL  DISTRICT'S
GAP  ELIMINATION  ADJUSTMENT AS CALCULATED BY THE COMMISSIONER OF EDUCA-
TION PURSUANT TO PARAGRAPH D OF SUBDIVISION ONE  OF  SECTION  THIRTY-SIX
HUNDRED  NINE-A  OF  THE EDUCATION LAW. FUNDS WITHDRAWN PURSUANT TO THIS
SUBDIVISION MAY ONLY BE USED FOR THE PURPOSE OF MAINTAINING  EDUCATIONAL
PROGRAMMING  DURING  THE TWO THOUSAND NINE--TWO THOUSAND TEN SCHOOL YEAR
WHICH OTHERWISE WOULD HAVE BEEN REDUCED AS A RESULT OF SUCH  GAP  ELIMI-
NATION  ADJUSTMENT.  GOVERNING BOARDS WHICH MAKE SUCH A WITHDRAWAL SHALL
SUBMIT, IN A FORM PRESCRIBED BY THE COMMISSIONER OF EDUCATION,  RELEVANT
INFORMATION ABOUT THE WITHDRAWAL, WHICH SHALL INCLUDE, BUT NOT BE LIMIT-
ED  TO,  THE  AMOUNT OF SUCH WITHDRAWAL, THE DATE OF WITHDRAWAL, AND THE
USE OF SUCH WITHDRAWN FUNDS.
  S 6. Subdivision 3 of section 33 of  the  general  municipal  law,  as
added  by  section  40  of  part A of chapter 57 of the laws of 2009, is
amended to read as follows:
  3. Examinations and report. In addition to the inspection and examina-
tion of certain accounts pursuant to this section, the  comptroller  [by
the  end  of]  DURING the [two thousand eleven--two thousand twelve] TWO
THOUSAND NINE--TWO THOUSAND TEN school year, shall also examine for  the

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most  recent  school year [as] practicable, the employee benefit accrued
liability reserve funds of  school  districts  established  pursuant  to
section  six-p  of  this  chapter.    Such  examination shall be for the
purpose  of  determining  the amount of funding in the reserve fund, the
amount of liabilities against such fund and if there exist funds in  the
reserve  fund which are in excess of the total liabilities of such fund.
The comptroller shall notify the school district if  such  excess  funds
exist  and the dollar value of the excess funding. The comptroller shall
also prepare a report on the school districts with excess funds in their
employee benefit accrued liability reserve fund and the  amount  of  the
excess  funding  for  each district.   Such report shall be submitted by
July first, two thousand [twelve] TEN to the director of the budget, the
chair of the senate finance committee, the chair of  the  assembly  ways
and means committee and the commissioner of education.
  S  7.  Subdivision a of section 50 of part A of chapter 57 of the laws
of 2009, amending the education law and other laws relating  to  special
apportionment for salary expenses, is amended to read as follows:
  a. Notwithstanding any other provision of law, upon application to the
commissioner  of  education, not sooner than the first day of the second
full business week of June, 2010 and not later than the last day of  the
third  full  business week of June, 2010, a school district eligible for
an apportionment pursuant to section 3602 of the education law shall  be
eligible  to  receive an apportionment pursuant to this section, for the
school year ending June 30, 2010, for salary expenses  incurred  between
April  1  and June 30, 2010, and such apportionment shall not exceed THE
SUM OF (I) the deficit reduction assessment of 1990-91 as determined  by
the  commissioner of education, pursuant to paragraph f of subdivision 1
of section 3602 of the education law, as  in  effect  through  June  30,
1993, plus (II) 186 percent of such amount for a city school district in
a  city with a population in excess of 1,000,000 inhabitants [and], plus
(III) 209 percent of such amount for a city school district  in  a  city
with a population of more than 195,000 inhabitants and less than 219,000
inhabitants  according  to  the latest federal census, PLUS (IV) THE GAP
ELIMINATION ADJUSTMENT OF TWO THOUSAND NINE--TWO THOUSAND TEN, AS DETER-
MINED BY THE COMMISSIONER OF EDUCATION PURSUANT TO PARAGRAPH D OF SUBDI-
VISION ONE OF SECTION THIRTY-SIX HUNDRED NINE-A OF THE EDUCATION LAW  AS
IN EFFECT THROUGH JUNE THIRTIETH, TWO THOUSAND TEN, and PROVIDED FURTHER
THAT  SUCH  APPORTIONMENT  shall  not  exceed such salary expenses. Such
application shall be made by a  school  district,  after  the  board  of
education or trustees have adopted a resolution to do so and in the case
of  a  city  school  district  in  a city with a population in excess of
125,000 inhabitants, with the approval of the mayor of such city.
  S 8. Mitigation of educational services impact. Each  school  district
shall  use, to the extent applicable, any unappropriated unreserved fund
balance to mitigate the impact of the  gap  elimination  adjustment.  In
addition,  any  programmatic  reductions  undertaken by school districts
after any unappropriated unreserved fund balance is fully allocated,  as
a  result  of  the enactment of the gap elimination adjustment shall, to
the extent possible, not impact educational services to children. School
districts shall report  to  the  commissioner  of  the  state  education
department,  in  a  manner  and  form as prescribed by the commissioner,
before July 1, 2010 to specify all the budgetary actions taken  by  each
school district due to the enactment of the gap elimination adjustment.
  S 9. This act shall take effect immediately.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion,  section  or  part  of  this act shall be adjudged by any court of

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competent jurisdiction to be invalid, such judgment  shall  not  affect,
impair,  or  invalidate  the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph,  subdivision,  section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the  legislature  that  this  act  would  have been enacted even if such
invalid provisions had not been included herein.
  S 3. This act shall take effect immediately  provided,  however,  that
the  applicable effective date of Parts A through B of this act shall be
as specifically set forth in the last section of such Parts.