Section 1. This act enacts into law major components of legislation
which are necessary to enact the New York state property taxpayers'
protection act. Each component is wholly contained within a Part identi-
fied as Parts A through E. 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 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 four of this act sets forth the
general effective date of this act.
S 2. This act shall be known and may be cited as the "New York state
property taxpayers' protection act".
PART A
Section 1. Legislative intent. It is the intent of the legislature to
provide annual state school aid increases within the foundation aid
category, as provided in the education law, at a rate not less than the
inflation factor as defined in section 1307 of the real property tax
law, as added by section two of this act. This act controls property tax
increases by preventing school districts from increasing tax levies by
more than four percent each year or at the rate of inflation, whichever
is less. By providing a minimum annual state foundation aid increase at
the inflation rate, the legislature shall ensure property tax relief for
homeowners.
S 2. The real property tax law is amended by adding a new section 1307
to read as follows:
S 1307. LIMITATIONS UPON SCHOOL DISTRICT TAX LEVIES. 1. GENERALLY.
NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, BEGINNING WITH THE
TWO THOUSAND ELEVEN--TWO THOUSAND TWELVE SCHOOL YEAR, THE AMOUNT OF
TAXES LEVIED FOR SCHOOL DISTRICT PURPOSES FOR ANY SCHOOL YEAR MAY NOT
EXCEED THE AMOUNT OF TAXES LEVIED FOR THE PRIOR SCHOOL YEAR BY FOUR
PERCENT, OR BY THE INFLATION FACTOR, WHICHEVER IS LOWER. FOR THE
PURPOSES OF THIS SECTION, THE INFLATION FACTOR SHALL BE A PERCENTAGE
THAT REPRESENTS THE AVERAGE OF THE NATIONAL CONSUMER PRICE INDEXES
DETERMINED BY THE UNITED STATES DEPARTMENT OF LABOR FOR THE TWELVE
MONTHS OF THE PRIOR CALENDAR YEAR. ON OR BEFORE APRIL FIRST OF EACH
YEAR, THE COMMISSIONER OF EDUCATION SHALL DETERMINE THE APPLICABLE LIMI-
TATION UPON SCHOOL DISTRICT TAX LEVIES FOR THE ENSUING SCHOOL YEAR, AND
SHALL NOTIFY EACH SCHOOL DISTRICT ACCORDINGLY.
2. EXCEPTIONS. (A) VOTER APPROVAL. THE INHABITANTS OF A SCHOOL
DISTRICT MAY, BY A TWO-THIRDS MAJORITY VOTE, SUSPEND THE LIMITATIONS
IMPOSED BY THIS SECTION IN THE SAME MANNER AS IS PROVIDED BY LAW FOR THE
APPROVAL OF SCHOOL DISTRICT EXPENDITURES. NO SUCH VOTE SHALL APPLY TO
MORE THAN ONE SCHOOL YEAR. THE QUESTION OF WHETHER TO SUSPEND THE LIMI-
TATIONS FOR A PARTICULAR SCHOOL YEAR MAY BE SUBMITTED TO THE VOTERS NO
MORE THAN ONCE. WHEN SUCH A QUESTION IS SUBMITTED TO THE VOTERS, IT
SHALL BE PRESENTED AS A SEPARATE PROPOSITION IN SUBSTANTIALLY THE
FOLLOWING FORM: "SHALL THE __________ SCHOOL DISTRICT BE ALLOWED TO
INCREASE ITS TAX LEVY BY _____ PERCENT, DESPITE THE FACT THAT THE MAXI-
MUM INCREASE OTHERWISE ALLOWED BY LAW AT THIS TIME IS ____ PERCENT?"
(B) ENROLLMENT INCREASES. IF THE RESIDENT PUBLIC SCHOOL DISTRICT
ENROLLMENT, AS DEFINED BY PARAGRAPH N OF SUBDIVISION ONE OF SECTION
THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW, HAS INCREASED, THE TAX
LIMIT MAY BE INCREASED IN PROPORTION TO THE NET PERCENTAGE INCREASE IN
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SUCH ENROLLMENT. FOR THIS PURPOSE, ENROLLMENT INCREASES SHALL BE DETER-
MINED BY COMPARING THE ENROLLMENT AS OF THE SECOND SCHOOL YEAR PRECEDING
THE SCHOOL YEAR TO WHICH THE LIMITATIONS ARE TO APPLY, TO THE ENROLLMENT
AS OF THE SCHOOL YEAR IMMEDIATELY PRECEDING THE SCHOOL YEAR TO WHICH THE
LIMITATIONS ARE TO APPLY.
(C) QUANTITY INCREASES. IF THE QUANTITY OF REAL PROPERTY WITHIN THE
SCHOOL DISTRICT HAS INCREASED DUE TO NEW CONSTRUCTION, IMPROVEMENTS, OR
OTHER PHYSICAL CHANGES, THE TAX LIMIT MAY BE INCREASED IN PROPORTION TO
THE NET PERCENTAGE QUANTITY INCREASE. FOR THIS PURPOSE, QUANTITY
INCREASES SHALL BE DETERMINED BY COMPARING THE QUANTITIES AS OF THE
SECOND FINAL ASSESSMENT ROLL PRECEDING THE FINAL ASSESSMENT ROLL UPON
WHICH TAXES ARE TO BE LEVIED, TO THE QUANTITIES AS OF THE FINAL ASSESS-
MENT ROLL IMMEDIATELY PRECEDING THE FINAL ASSESSMENT ROLL UPON WHICH
TAXES ARE TO BE LEVIED. ASSESSORS SHALL CALCULATE QUANTITY INCREASES FOR
THIS PURPOSE AT THE WRITTEN REQUEST OF THE SCHOOL AUTHORITIES, IN THE
MANNER PRESCRIBED BY THE STATE BOARD.
3. ERRONEOUS LEVIES. IN THE EVENT A SCHOOL DISTRICT'S ACTUAL TAX LEVY
FOR A GIVEN SCHOOL YEAR EXCEEDS THE MAXIMUM ALLOWABLE LEVY UNDER THIS
SECTION DUE TO CLERICAL OR TECHNICAL ERRORS, THE SCHOOL DISTRICT SHALL
PLACE THE EXCESS AMOUNT OF THE LEVY IN RESERVE IN ACCORDANCE WITH SUCH
REQUIREMENTS AS THE STATE COMPTROLLER MAY PRESCRIBE, AND SHALL USE SUCH
FUNDS AND ANY INTEREST EARNED THEREON TO OFFSET THE TAX LEVY FOR THE
FOLLOWING SCHOOL YEAR.
4. APPLICABILITY. THE PROVISIONS OF THIS SECTION SHALL APPLY TO ALL
SCHOOL DISTRICTS OTHER THAN CITY SCHOOL DISTRICTS WHICH ARE SUBJECT TO
ARTICLE FIFTY-TWO OF THE EDUCATION LAW.
S 3. This act shall take effect immediately.
PART B
Section 1. The general municipal law is amended by adding a new
section 25 to read as follows:
S 25. FUNDING OF MANDATES. 1. DEFINITIONS. AS USED IN THIS SECTION,
THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS UNLESS THE CONTEXT
SHALL OTHERWISE REQUIRE:
(A) "MANDATE" MEANS:
(I) ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM OR
REQUIRES A HIGHER LEVEL OF SERVICE FOR AN EXISTING PROGRAM WHICH A
MUNICIPAL CORPORATION IS REQUIRED TO PROVIDE; OR
(II) ANY GENERAL LAW WHICH GRANTS A NEW PROPERTY TAX EXEMPTION OR
INCREASES AN EXISTING PROPERTY TAX EXEMPTION WHICH THE MUNICIPAL CORPO-
RATION IS REQUIRED TO PROVIDE.
(B) "UNFUNDED MANDATE" SHALL MEAN:
(I) ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM OR
REQUIRES A HIGHER LEVEL OF SERVICE FOR AN EXISTING PROGRAM WHICH A
MUNICIPAL CORPORATION IS REQUIRED TO PROVIDE AND WHICH RESULTS IN A NET
ADDITIONAL COST TO THE MUNICIPAL CORPORATION;
(II) ANY ALTERATION IN FUNDING PROVIDED TO A MUNICIPAL CORPORATION FOR
THE PURPOSE OF DEFRAYING THE COSTS OF A PROGRAM WHICH IT IS REQUIRED TO
PROVIDE, THEREBY RESULTING IN A NET ADDITIONAL COST TO THE MUNICIPAL
CORPORATION; OR
(III) ANY GENERAL LAW WHICH GRANTS A NEW PROPERTY TAX EXEMPTION OR
INCREASES AN EXISTING PROPERTY TAX EXEMPTION WHICH THE MUNICIPAL CORPO-
RATION IS REQUIRED TO PROVIDE, THEREBY RESULTING IN A NET ADDITIONAL
COST TO THE MUNICIPAL CORPORATION.
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(C) "NET ADDITIONAL COST" MEANS THE COST OR COSTS INCURRED OR ANTIC-
IPATED TO BE INCURRED WITHIN A ONE YEAR PERIOD BY A LOCAL GOVERNMENT IN
PERFORMING OR ADMINISTERING A MANDATE AFTER SUBTRACTING THEREFROM ANY
REVENUES RECEIVED OR RECEIVABLE BY THE LOCAL GOVERNMENT ON ACCOUNT OF
THE MANDATED PROGRAM OR SERVICE, INCLUDING BUT NOT LIMITED TO:
(I) FEES CHARGED TO THE RECIPIENTS OF THE MANDATED PROGRAM OR SERVICE;
(II) STATE OR FEDERAL AID PAID SPECIFICALLY OR CATEGORICALLY IN
CONNECTION WITH THE PROGRAM OR SERVICE; AND
(III) AN OFFSETTING SAVINGS RESULTING FROM THE DIMINUTION OR ELIMI-
NATION OF ANY OTHER PROGRAM OR SERVICE DIRECTLY ATTRIBUTABLE TO THE
PERFORMANCE OR ADMINISTRATION OF THE MANDATED PROGRAM.
2. FUNDING OF MUNICIPAL CORPORATION MANDATES. NOTWITHSTANDING ANY
OTHER PROVISION OF LAW, NO UNFUNDED MANDATE SHALL BE ENACTED WHICH
CREATES AN ANNUAL NET ADDITIONAL COST TO ANY MUNICIPAL CORPORATION IN
EXCESS OF TEN THOUSAND DOLLARS OR AN AGGREGATE ANNUAL NET ADDITIONAL
COST TO ALL MUNICIPAL CORPORATIONS IN EXCESS OF ONE MILLION DOLLARS.
3. EXEMPTIONS TO THE FUNDING OF MUNICIPAL CORPORATION MANDATES
REQUIREMENT. (A) THE STATE SHALL NOT BE REQUIRED TO FUND ANY NEW OR
EXPANDED PROGRAMS IF:
(I) THE MANDATE IS REQUIRED BY A COURT ORDER OR JUDGMENT;
(II) THE MANDATE IS PROVIDED AT THE OPTION OF THE LOCAL GOVERNMENT
UNDER A LAW, REGULATION, RULE, OR ORDER THAT IS PERMISSIVE RATHER THAN
MANDATORY;
(III) THE MANDATE RESULTS FROM THE PASSAGE OF A HOME RULE MESSAGE
WHEREBY A LOCAL GOVERNMENT REQUESTS AUTHORITY TO IMPLEMENT THE PROGRAM
OR SERVICE SPECIFIED IN THE STATUTE, AND THE STATUTE IMPOSES COSTS ONLY
UPON THAT LOCAL GOVERNMENT WHICH REQUESTS THE AUTHORITY TO IMPOSE THE
PROGRAM OR SERVICE;
(IV) THE MANDATE IS REQUIRED BY, OR ARISES FROM, AN EXECUTIVE ORDER OF
THE GOVERNOR EXERCISING HIS OR HER EMERGENCY POWERS; OR
(V) 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 RESULTS IN COSTS WHICH EXCEED THE COSTS MANDATED BY THE
FEDERAL GOVERNMENT.
(B) EACH ACT ESTABLISHING A MANDATE SHALL PROVIDE THAT THE EFFECTIVE
DATE OF ANY SUCH MANDATE IMPOSED ON MUNICIPAL CORPORATIONS SHALL BE
CONSISTENT WITH THE NEEDS OF THE STATE AND MUNICIPAL CORPORATIONS TO
PLAN IMPLEMENTATION THEREOF AND CONSISTENT WITH THE AVAILABILITY OF
REQUIRED FUNDS.
S 2. The education law is amended by adding a new section 1527-a to
read as follows:
S 1527-A. FUNDING OF MANDATES IMPOSED ON SCHOOL DISTRICTS. 1. DEFI-
NITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS UNLESS THE CONTEXT SHALL OTHERWISE REQUIRE:
(A) "MANDATE" MEANS:
(I) 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
(II) 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.
(B) "UNFUNDED MANDATE" SHALL MEAN:
(I) ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM OR
REQUIRES A HIGHER LEVEL OF SERVICE FOR AN EXISTING PROGRAM WHICH ANY
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SUCH SCHOOL DISTRICT IS REQUIRED TO PROVIDE AND WHICH RESULTS IN A NET
ADDITIONAL COST TO SUCH SCHOOL DISTRICT;
(II) ANY ALTERATION IN FUNDING PROVIDED TO ANY SUCH SCHOOL DISTRICT
FOR THE PURPOSE OF DEFRAYING THE COSTS OF A PROGRAM WHICH IT IS REQUIRED
TO PROVIDE, THEREBY RESULTING IN A NET ADDITIONAL COST TO SUCH SCHOOL
DISTRICT; OR
(III) 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, THEREBY RESULTING IN A NET ADDITIONAL
COST TO SUCH SCHOOL DISTRICT.
(C) "NET ADDITIONAL COST" MEANS THE COST OR COSTS INCURRED OR ANTIC-
IPATED TO BE INCURRED WITHIN A ONE YEAR PERIOD BY A SCHOOL DISTRICT IN
PERFORMING OR ADMINISTERING A MANDATE AFTER SUBTRACTING THEREFROM ANY
REVENUES RECEIVED OR RECEIVABLE BY THE SCHOOL DISTRICT ON ACCOUNT OF THE
MANDATED PROGRAM OR SERVICE, INCLUDING BUT NOT LIMITED TO:
(I) FEES CHARGED TO THE RECIPIENTS OF THE MANDATED PROGRAM OR SERVICE;
(II) STATE OR FEDERAL AID PAID SPECIFICALLY OR CATEGORICALLY IN
CONNECTION WITH THE PROGRAM OR SERVICE; AND
(III) AN OFFSETTING SAVINGS RESULTING FROM THE DIMINUTION OR ELIMI-
NATION OF ANY OTHER PROGRAM OR SERVICE DIRECTLY ATTRIBUTABLE TO THE
PERFORMANCE OR ADMINISTRATION OF THE MANDATED PROGRAM.
2. FUNDING OF SCHOOL DISTRICT MANDATES. NOTWITHSTANDING ANY OTHER
PROVISION OF LAW, NO UNFUNDED MANDATE SHALL BE ENACTED WHICH CREATES AN
ANNUAL NET ADDITIONAL COST TO ANY SCHOOL DISTRICT IN EXCESS OF TEN THOU-
SAND DOLLARS OR AN AGGREGATE ANNUAL NET ADDITIONAL COST TO ALL SCHOOL
DISTRICTS IN EXCESS OF ONE MILLION DOLLARS.
3. EXEMPTIONS TO THE FUNDING OF SCHOOL DISTRICT MANDATES REQUIREMENT.
(A) THE STATE SHALL NOT BE REQUIRED TO FUND ANY NEW OR EXPANDED PROGRAMS
FOR SCHOOL DISTRICTS IF:
(I) THE MANDATE IS REQUIRED BY A COURT ORDER OR JUDGMENT;
(II) THE MANDATE IS PROVIDED AT THE OPTION OF THE SCHOOL DISTRICT
UNDER A LAW, REGULATION, RULE, OR ORDER THAT IS PERMISSIVE RATHER THAN
MANDATORY;
(III) THE MANDATE RESULTS FROM THE PASSAGE OF A HOME RULE MESSAGE
WHEREBY A SCHOOL DISTRICT REQUESTS AUTHORITY TO IMPLEMENT THE PROGRAM OR
SERVICE SPECIFIED IN THE STATUTE, AND THE STATUTE IMPOSES COSTS ONLY
UPON THAT SCHOOL DISTRICT WHICH REQUESTS THE AUTHORITY TO IMPOSE THE
PROGRAM OR SERVICE;
(IV) THE MANDATE IS REQUIRED BY, OR ARISES FROM, AN EXECUTIVE ORDER OF
THE GOVERNOR EXERCISING HIS OR HER EMERGENCY POWERS; OR
(V) 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 RESULTS IN COSTS WHICH EXCEED THE COSTS MANDATED BY THE
FEDERAL GOVERNMENT.
(B) EACH ACT ESTABLISHING A MANDATE SHALL PROVIDE THAT THE EFFECTIVE
DATE OF ANY SUCH MANDATE IMPOSED ON SCHOOL DISTRICTS SHALL BE CONSISTENT
WITH THE NEEDS OF THE STATE AND SCHOOL DISTRICTS TO PLAN IMPLEMENTATION
THEREOF, AND ALSO CONSISTENT WITH THE AVAILABILITY OF REQUIRED FUNDS.
S 3. The legislative law is amended by adding a new section 52-a to
read as follows:
S 52-A. REQUIREMENTS WITH RESPECT TO BILLS MANDATING EXPENDITURES OR
APPROPRIATIONS. A BILL THAT ENACTS OR AMENDS ANY EXPENDITURES OR APPRO-
PRIATIONS SHALL STATE THE ESTIMATED COST OF SUCH EXPENDITURE OR APPRO-
PRIATION IN THE BODY OF THE BILL.
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S 4. Section 215-b of the education law, as amended by chapter 301 of
the laws of 1996, is amended to read as follows:
S 215-b. Annual report by commissioner to governor and legislature.
The commissioner shall prepare and submit to the governor, the president
pro tem of the senate and the speaker of the assembly not later than
January first, nineteen hundred ninety-six and by the first day of Janu-
ary in each year thereafter, a report detailing the financial and
statistical outcomes of boards of cooperative educational services which
shall[, at minimum,] set forth with respect to the preceding school
year[: tuition costs for selected programs; standard per pupil cost
information for selected services as determined by the commissioner; and
aggregate expenditure data for the following categories: administration,
instructional services, career education, special education, rent and
facilities and other services; and such other information as deemed
appropriate] INFORMATION NECESSARY TO ASSURE THE ACCOUNTABILITY OF
BOARDS OF COOPERATIVE EDUCATIONAL SERVICES FOR ITS FISCAL AND PROGRAM-
MATIC RESOURCES, AS SET FORTH IN REGULATIONS TO BE PRESCRIBED by the
commissioner. The format for such report shall be developed in consulta-
tion with school district officials and the director of the budget.
Such report will include changes from the year prior to the report year
for each such item for all boards of cooperative educational services.
WHERE APPLICABLE, SUCH REPORT SHALL BE SUBMITTED ELECTRONICALLY TO THE
DEPARTMENT OVER THE INTERNET THROUGH A SECURE WEBPAGE AS SET FORTH IN
REGULATIONS TO BE PRESCRIBED BY THE COMMISSIONER. THIS ELECTRONIC REPORT
SHALL TAKE THE PLACE OF FILING PAPER COPIES OF SUCH REPORT EXCEPT IN
CIRCUMSTANCES WHERE AN ORIGINAL SIGNATURE IS REQUIRED, THEN ORIGINAL
PAPER COPIES MUST BE FILED. THE COMMISSIONER SHALL PROMULGATE ALL RULES
AND REGULATIONS NECESSARY TO IMPLEMENT THE ELECTRONIC FILING OF SUCH
REPORT. Such report shall be distributed to all school districts and
boards of cooperative educational services and shall be made available
to all other interested parties upon request.
S 5. Section 305 of the education law is amended by adding two new
subdivisions 32 and 32-a to read as follows:
32. A. THE COMMISSIONER SHALL, TO THE EXTENT PRACTICABLE AND CONSIST-
ENT WITH FEDERAL AND STATE LAW, ELIMINATE OR STREAMLINE PROGRAMMATIC
REPORTING, PLANNING AND APPLICATION REQUIREMENTS IMPOSED ON SCHOOL
DISTRICTS AND BOARDS OF COOPERATIVE EDUCATIONAL SERVICES, IN ORDER TO
ELIMINATE OR MINIMIZE THE PRODUCTION OF REPORTS, APPLICATIONS AND PLANS
THAT CONTAIN DUPLICATIVE INFORMATION. WHERE APPLICABLE, THE COMMISSION-
ER SHALL REQUIRE THAT ALL SUCH REPORTS, APPLICATIONS AND PLANS SHALL BE
SUBMITTED ELECTRONICALLY TO THE DEPARTMENT OVER THE INTERNET THROUGH A
SECURE WEBPAGE. THESE ELECTRONIC REPORTS, APPLICATIONS AND PLANS SHALL
TAKE THE PLACE OF FILING PAPER COPIES OF SUCH REPORTS, APPLICATIONS AND
PLANS EXCEPT IN CIRCUMSTANCES WHERE AN ORIGINAL SIGNATURE IS REQUIRED,
THEN ORIGINAL PAPER COPIES MUST BE FILED. THE COMMISSIONER SHALL
PROMULGATE ALL RULES AND REGULATIONS NECESSARY TO IMPLEMENT THE ELEC-
TRONIC FILING OF SUCH REPORTS, APPLICATIONS AND PLANS. THE COMMISSIONER
SHALL REQUIRE ALL SCHOOL DISTRICTS AND BOARDS OF COOPERATIVE EDUCATIONAL
SERVICES TO COMPRESS ALL DISTRICTWIDE PLANNING REQUIREMENTS INTO A
SINGLE DISTRICTWIDE COMPREHENSIVE PLAN, WHICH AT A MINIMUM SHALL INCLUDE
THE COMPONENTS PRESCRIBED BY THE COMMISSIONER, INCLUDING BUT NOT LIMITED
TO THE DISTRICTWIDE LONG-RANGE CAPITAL FACILITIES PLAN, AND APPLICABLE
CURRENT FEDERAL REQUIREMENTS. IN THE CASE OF THE CITY SCHOOL DISTRICT OF
THE CITY OF NEW YORK, A DISTRICTWIDE COMPREHENSIVE PLAN SHALL BE DEVEL-
OPED FOR THE CITY SCHOOL DISTRICT, EACH COMMUNITY SCHOOL DISTRICT, AND
THE DISTRICTS OR OTHER ADMINISTRATIVE DIVISIONS RESPONSIBLE FOR OPERA-
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TION OF NEW YORK CITY PUBLIC SCHOOLS. THE COMMISSIONER SHALL ALSO
REQUIRE ALL SCHOOL DISTRICTS AND BOARDS OF COOPERATIVE EDUCATIONAL
SERVICES TO COMPRESS ALL BUILDING LEVEL PLANNING REQUIREMENTS INTO A
SINGLE BUILDING LEVEL COMPREHENSIVE PLAN, WHICH AT A MINIMUM, SHALL
INCLUDE THE COMPONENTS PRESCRIBED BY THE COMMISSIONER AND APPLICABLE
CURRENT FEDERAL REQUIREMENTS. IT SHALL BE THE DUTY OF THE TRUSTEES OR
BOARD OF EDUCATION OF EVERY SCHOOL DISTRICT AND OF THE CHANCELLOR AND
EACH COMMUNITY DISTRICT EDUCATIONAL COUNCIL IN THE CITY SCHOOL DISTRICT
OF THE CITY OF NEW YORK AND OF EVERY BOARD OF COOPERATIVE EDUCATIONAL
SERVICES TO ASSURE THAT ALL COMPONENTS OF THE DISTRICTWIDE COMPREHENSIVE
PLAN AND EACH BUILDING LEVEL COMPREHENSIVE PLAN ARE AS FULLY INTEGRATED
AND CONSISTENT AS PRACTICABLE, AND THAT SUCH PLANS ARE CONTINUOUSLY
REVIEWED, REFLECT ONGOING ANALYSES OF CURRENT TEACHING AND LEARNING DATA
AND ARE UPDATED ON AT LEAST AN ANNUAL BASIS. NOTWITHSTANDING ANY OTHER
PROVISION OF LAW, RULE OR REGULATION TO THE CONTRARY, ANY SEPARATE PLAN
REQUIREMENTS IMPOSED UNDER THIS CHAPTER OR ANY RULE OR REGULATION SHALL
BE DEEMED TO BE FULFILLED BY INCLUSION OF SUCH PLAN IN THE COMPREHENSIVE
DISTRICTWIDE OR BUILDING LEVEL PLAN, PROVIDED THAT ALL REQUIRED INFORMA-
TION IS INCLUDED IN THE APPLICABLE COMPREHENSIVE PLAN.
B. THE COMMISSIONER SHALL REQUIRE THE TRUSTEES OR BOARD OF EDUCATION
OF EVERY SCHOOL DISTRICT AND THE CHANCELLOR AND EACH COMMUNITY
DISTRICT-EDUCATIONAL COUNCIL IN THE CITY SCHOOL DISTRICT OF THE CITY OF
NEW YORK AND EVERY BOARD OF COOPERATIVE EDUCATIONAL SERVICES TO MAKE ITS
DISTRICTWIDE COMPREHENSIVE PLAN AND EACH BUILDING LEVEL COMPREHENSIVE
PLAN AVAILABLE TO THE PUBLIC, EXCEPT WHERE SUCH PLANS CONTAIN INFORMA-
TION THAT IS CONFIDENTIAL AND NOT SUBJECT TO DISCLOSURE UNDER STATE OR
FEDERAL LAW. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR REGU-
LATION TO THE CONTRARY, ANY SCHOOL DISTRICT OR BOARD OF COOPERATIVE
SERVICES THAT MAKES ITS COMPREHENSIVE DISTRICTWIDE AND/OR BUILDING LEVEL
PLANS PUBLICLY AVAILABLE ELECTRONICALLY THROUGH POSTING ON ITS WEBSITE
SHALL BE DEEMED TO HAVE FILED SUCH PLANS WITH THE DEPARTMENT AS OF THE
DATE OF POSTING AND SHALL NOT BE REQUIRED TO SEPARATELY REPORT THE
INFORMATION CONTAINED IN SUCH PLANS TO THE DEPARTMENT, PROVIDED THAT
SUCH DISTRICT OR BOARD OF COOPERATIVE EDUCATIONAL SERVICES REPORTS SUCH
POSTING TO THE DEPARTMENT, WITH THE WEB ADDRESS AT WHICH SUCH PLANS ARE
AVAILABLE, IN THE MANNER PRESCRIBED BY THE DEPARTMENT, AND PROVIDED
FURTHER THAT NOTHING IN THIS SUBDIVISION SHALL PRECLUDE THE DEPARTMENT
FROM REQUIRING AMENDMENT OF A PLAN OR THE SUBMISSION OF ADDITIONAL
INFORMATION WHERE IT DETERMINES THAT THE INFORMATION IN THE COMPREHEN-
SIVE PLANS IS NOT CURRENT OR COMPLETE OR OTHERWISE SUFFICIENT TO MEET
STATUTORY OR REGULATORY REQUIREMENTS.
32-A. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRA-
RY, THE COMMISSIONER SHALL BE AUTHORIZED AND DIRECTED TO GRANT WAIVERS
PURSUANT TO THIS SUBDIVISION FROM ANY ANNUAL REPORTING REQUIREMENTS
IMPOSED ON SCHOOL DISTRICTS UNDER THIS CHAPTER, IN WHOLE OR IN PART,
PROVIDED SUCH WAIVERS APPLY TO ALL SCHOOL DISTRICTS AND DO NOT CONFLICT
WITH FEDERAL REQUIREMENTS. SUCH WAIVERS MAY BE GRANTED UPON FINDINGS BY
THE COMMISSIONER THAT:
A. THE PURPOSES OF THE REPORT CAN BE SUBSTANTIALLY MET THROUGH
SUBMISSION OF A REPORT ON A TWO-YEAR, THREE-YEAR OR FIVE-YEAR BASIS, AS
SPECIFIED BY THE COMMISSIONER, TAKING INTO ACCOUNT OTHER ANNUAL DATA
REPORTING REQUIREMENTS AND INFORMATION MADE PUBLICLY AVAILABLE BY THE
SCHOOL DISTRICT ON AN ANNUAL BASIS; AND
B. THE REPORT OR PORTION OF THE REPORT BEING WAIVED DOES NOT CONTAIN
FISCAL OR OTHER DATA OR INFORMATION NEEDED FOR PURPOSES OF COMPUTING
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STATE OR FEDERAL AID OR FOR PURPOSES OF SCHOOL OR SCHOOL DISTRICT
ACCOUNTABILITY OR FOR AUDIT PURPOSES.
S 6. Paragraph c of subdivision 4 of section 1950 of the education
law, as amended by chapter 378 of the laws of 2010, is amended to read
as follows:
c. Make or cause to be made surveys to determine the need for cooper-
ative educational services in the supervisory district and present the
findings of their surveys to local school authorities. Each board of
cooperative educational services shall prepare long range program plans,
including special education and career education program plans, to meet
the projected need for such cooperative educational services in the
supervisory district for the next five years as may be specified by the
commissioner, and shall keep on file and make available for public
inspection and review by the commissioner such plans and thereafter
annual revisions of such plans on or before the first day of December of
each year, provided that such plans [may] SHALL be incorporated into a
board of cooperative educational services district-wide comprehensive
plan. FURTHER, WHERE APPLICABLE, THE COMMISSIONER SHALL REQUIRE THAT
ALL SUCH PLANS SHALL BE SUBMITTED ELECTRONICALLY TO THE DEPARTMENT OVER
THE INTERNET THROUGH A SECURE WEBPAGE. THIS ELECTRONIC PLAN SHALL TAKE
THE PLACE OF FILING PAPER COPIES OF SUCH PLAN EXCEPT IN CIRCUMSTANCES
WHERE AN ORIGINAL SIGNATURE IS REQUIRED, THEN ORIGINAL PAPER COPIES MUST
BE FILED. THE COMMISSIONER SHALL PROMULGATE ALL RULES AND REGULATIONS
NECESSARY TO IMPLEMENT THE ELECTRONIC FILING OF SUCH PLAN.
S 7. Paragraph b of subdivision 8 of section 3602 of the education
law, as amended by chapter 378 of the laws of 2010, is amended to read
as follows:
b. District plans of service. Any school district receiving an addi-
tional apportionment pursuant to subdivision ten of this section for
pupils in career education programs or a payment in lieu of such appor-
tionment or having a public excess cost aid setaside pursuant to subdi-
vision four of this section shall keep on file and make available for
public inspection and review by the commissioner AND INCORPORATE INTO
ITS DISTRICTWIDE COMPREHENSIVE PLAN an acceptable plan of service
describing the student outcomes expected from implementation of the
proposed plan, provided that such plan may be incorporated into a school
district's district-wide comprehensive plan. The plan of service of a
school district receiving an additional apportionment pursuant to this
section for pupils with disabilities shall also describe how such
district intends to ensure that all instructional materials to be used
in the schools of such district will be made available in a usable
alternative format for each student with a disability and for each
student who is a qualified individual with a disability, at the same
time as such instructional materials are available to non-disabled
students, provided that such plan may incorporate by reference the
alternative format plans developed pursuant to subdivision twenty-nine-a
of section sixteen hundred four, subdivision four-a of section seventeen
hundred nine, subdivision seven-a of section twenty-five hundred three
or subdivision seven-a of section twenty-five hundred fifty-four of this
chapter. Such plans shall be in a form prescribed by the commissioner,
and except as heretofore provided, shall have the content prescribed by
the commissioner. WHERE APPLICABLE, THE COMMISSIONER SHALL REQUIRE THAT
ALL SUCH PLANS SHALL BE SUBMITTED ELECTRONICALLY TO THE DEPARTMENT OVER
THE INTERNET THROUGH A SECURE WEBPAGE. THIS ELECTRONIC PLAN SHALL TAKE
THE PLACE OF FILING PAPER COPIES OF SUCH PLAN EXCEPT IN CIRCUMSTANCES
WHERE AN ORIGINAL SIGNATURE IS REQUIRED, THEN ORIGINAL PAPER COPIES MUST
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BE FILED. THE COMMISSIONER SHALL PROMULGATE ALL RULES AND REGULATIONS
NECESSARY TO IMPLEMENT THE ELECTRONIC FILING OF SUCH PLAN. The commis-
sioner may, from time to time, require amendments of such plans as
deemed to be necessary and appropriate to further the educational
welfare of the pupils involved.
S 8. Within one year of the effective date of this act, the commis-
sioner of education shall issue a report to the governor and the legis-
lature detailing the reporting requirements that have been eliminated
under this act. Such report shall include specific statutory require-
ments, reports, and regulatory requirements that have been eliminated or
rendered null and void as a result of the provisions of this act. Where
applicable, the commissioner of education shall require that such report
shall be submitted electronically to the state education department over
the internet through a secure webpage. This electronic report shall take
the place of filing paper copies of such report except in circumstances
where an original signature is required, then original paper copies must
be filed. The commissioner of education shall promulgate all rules and
regulations necessary to implement the electronic filing of such report.
S 9. The education law is amended by adding a new section 207-b to
read as follows:
S 207-B. EFFECTIVENESS OF ADDITIONAL COSTS TO SCHOOL DISTRICTS.
NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, ANY POLICY,
RULE OR REGULATION ADOPTED BY THE BOARD OF REGENTS THAT CREATES AN ANNU-
AL NET ADDITIONAL COST TO ANY SCHOOL DISTRICT IN EXCESS OF TEN THOUSAND
DOLLARS OR AN AGGREGATE ANNUAL NET ADDITIONAL COST TO ALL SCHOOL
DISTRICTS IN EXCESS OF ONE MILLION DOLLARS TO BE APPROVED BY THE STATE
LEGISLATURE AND SIGNED INTO LAW BY THE GOVERNOR SHALL NOT TAKE EFFECT
UNTIL THE NEXT SCHOOL YEAR AFTER IT HAS BECOME A LAW.
S 10. Section 3602 of the education law is amended by adding a new
subdivision 27 to read as follows:
27. AID FOR FOURTH AND EIGHTH GRADE STUDENT TESTING. IN ADDITION TO
ANY OTHER APPORTIONMENT UNDER THIS SECTION, FOR THE TWO THOUSAND THIR-
TEEN--TWO THOUSAND FOURTEEN SCHOOL YEAR AND THEREAFTER, A SCHOOL
DISTRICT SHALL BE ELIGIBLE FOR REIMBURSEMENT UNDER THE PROVISIONS OF
THIS SUBDIVISION EQUAL TO ONE HUNDRED PERCENT OF ALL COST INCURRED BY
SUCH SCHOOL DISTRICT ASSOCIATED WITH FOURTH AND EIGHTH GRADE STUDENT
TESTING. SUCH REIMBURSEMENT SHALL BE PROVIDED IN THE SAME MANNER AS
OTHER REIMBURSABLE AID CATEGORIES.
S 11. This act shall take effect on the one hundred eightieth day
after it shall have become a law; provided, however, that:
1. sections one and two of this act shall take effect April 1, 2012
and shall apply to any general or special law imposing mandates on
municipal corporations or school districts enacted on or after such
effective date;
2. section three of this act shall take effect on the first of January
next succeeding the date on which it shall have become a law; and
3. section four of this act, subdivision 32 of section 305 of the
education law, as added by section five of this act, and sections six
and seven of this act shall take effect on the first of July next
succeeding the date on which it shall become a law. The commissioner of
education is authorized and directed to promulgate, amend and/or repeal
any rule or regulation necessary for the implementation of this act on
its effective date on or before such effective date.
PART C
A. 3897 10
Section 1. Legislative intent. The legislature finds that Medicaid
waste, fraud and abuse increases for New York taxpayers statewide each
year. This act will continue to make Medicaid reform a top priority in
the hopes of saving each property taxpayer in New York state. The legis-
lature believes that all savings recouped from the Medicaid reforms in
this act should be returned to the taxpayers in the form of property tax
relief.
S 2. Section 365-a of the social services law is amended by adding a
new subdivision 10 to read as follows:
10. (A) NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS SECTION OR
OF ANY OTHER PROVISION OF LAW, THE STATE IS HEREBY AUTHORIZED TO ALLEVI-
ATE THE COUNTY COST OF MEDICAL ASSISTANCE PAYMENTS AND TO PROVIDE FISCAL
RELIEF TO EACH LOCAL SOCIAL SERVICES DISTRICT BY ASSUMING EXPENDITURES
FOR ALL OPTIONAL SERVICES OFFERED BY THE MEDICAL ASSISTANCE PROGRAM IN
THE STATE. THE STATE SHALL PHASE-IN SUCH FISCAL RELIEF OVER A FIVE-YEAR
PERIOD AND ANY SAVINGS A LOCAL SOCIAL SERVICES DISTRICT REALIZES AT THE
END OF SUCH FIVE-YEAR PERIOD SHALL BE REIMBURSED TO THE LOCAL SOCIAL
SERVICES DISTRICT AND/OR COUNTY TO OFFSET THE COST OF REAL PROPERTY
TAXES. SUCH OPTIONAL SERVICES THAT THE STATE SHALL ASSUME THE EXPENDI-
TURES FOR ARE THOSE OPTIONAL SERVICES PROVIDED BY APPLICABLE STATE LAW.
ANY FEDERALLY MANDATED MEDICAL ASSISTANCE SERVICES ARE EXEMPT FROM THE
PROVISIONS OF THIS SUBDIVISION.
(B) THE COMMISSIONER OF HEALTH IS AUTHORIZED TO APPLY FOR ANY AND ALL
FEDERAL WAIVERS REQUIRED TO IMPLEMENT THE PROVISIONS OF THIS SUBDIVI-
SION.
S 3. Subdivision 1 of section 368-a of the social services law is
amended by adding a new paragraph (aa) to read as follows:
(AA) (I) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE FULL AMOUNT
EXPENDED BY THE LOCAL SOCIAL SERVICES DISTRICT FOR MEDICAL ASSISTANCE
FRAUD, WASTE AND ABUSE INVESTIGATIONS VIA THE USE OF DATA MINING SOFT-
WARE SHALL BE REIMBURSED BY THE STATE IF THE COUNTY HAS PREVIOUSLY
PURCHASED OR INTENDS TO PURCHASE SUCH SOFTWARE. FOR THE PURPOSES OF THIS
PARAGRAPH, "DATA MINING SOFTWARE" SHALL MEAN A DATABASE APPLICATION THAT
UTILIZES ADVANCED DATA SEARCHING CAPABILITIES AND STATISTICAL ANALYSES
TO DISCOVER PATTERNS AND CORRELATIONS IN THE USE AND ABUSE OF MEDICAL
ASSISTANCE PRACTICES. ANY COUNTY THAT HAS PREVIOUSLY PURCHASED SUCH
SOFTWARE MUST SUPPLY ADEQUATE DOCUMENTATION, INCLUDING ANY RECEIPTS,
THAT DETAILS SUCH PURCHASE. THE STATE SHALL DISPERSE GRANTS, WHEN APPLI-
CABLE, FROM THE GENERAL FUND FOR THIS PURPOSE.
(II) THE COMMISSIONER OF HEALTH MAY DEVELOP RULES AND REGULATIONS AS
NECESSARY TO CARRY OUT THE PROVISIONS OF THIS PARAGRAPH.
S 4. This act shall take effect immediately.
PART D
Section 1. Legislative findings and intent. Public school districts
in New York state have recently experienced numerous instances of finan-
cial scandals. These scandals have been unprecedented in both the number
and diversity of financial malfeasance. Furthermore, such scandals
result in the diversion of hard-earned property taxpayers' money from
their proper use in school instruction to improper and illegal purposes
that do not further the school districts' essential mission of educating
New York children. Therefore, the legislature finds that it is neces-
sary to establish a new, independent state agency charged with the func-
tion of investigating allegations of corruption, financial improprie-
ties, unethical conduct, misconduct or other criminal conduct within
A. 3897 11
public school districts outside of New York city. In addition, the
legislature further finds that the current laws must be amended to
incorporate school district financial safeguards and establish sanctions
for violations of school district finance laws.
S 2. The education law is amended by adding a new section 2116-d to
read as follows:
S 2116-D. PERSONS AND OFFICIALS REQUIRED TO REPORT CASES OF SUSPECTED
CORRUPTION, OTHER CRIMINAL ACTIVITY OR CONFLICT OF INTEREST OCCURRING
WITHIN THE OPERATIONS OF A SCHOOL DISTRICT. 1. THE FOLLOWING PERSONS AND
OFFICIALS ARE REQUIRED TO REPORT OR CAUSE A REPORT TO BE MADE IN ACCORD-
ANCE WITH THIS SECTION WHEN THEY DISCOVER INFORMATION CONCERNING CONDUCT
WHICH IS KNOWN OR SHOULD REASONABLY BE KNOWN TO INVOLVE CORRUPTION OR
OTHER CRIMINAL ACTIVITY OR CONFLICT OF INTEREST BY EITHER A PUBLIC
SCHOOL DISTRICT EMPLOYEE THAT RELATES TO THEIR EMPLOYMENT OR BY A
PERSON, PERSONS OR ENTITIES DOING BUSINESS WITH A PUBLIC SCHOOL DISTRICT
WITH RESPECT TO THEIR TRANSACTIONS WITH THE SCHOOL DISTRICT, ANY SCHOOL
DISTRICT OFFICER, AND ANY SCHOOL DISTRICT EMPLOYEE.
2. ANY PERSON OR OFFICIAL MANDATED TO REPORT CASES OF SUSPECTED
CORRUPTION, OTHER CRIMINAL ACTIVITY OR CONFLICT OF INTEREST PURSUANT TO
SUBDIVISION ONE OF THIS SECTION SHALL IMMEDIATELY REPORT THE INFORMATION
THEY HAVE TO THE NEW YORK STATE INSPECTOR GENERAL FOR EDUCATION, AS
ESTABLISHED IN ARTICLE FOUR-B OF THE EXECUTIVE LAW.
3. ANY SCHOOL DISTRICT WHICH EMPLOYS PERSONS MANDATED TO REPORT
SUSPECTED INCIDENTS OF CORRUPTION, OTHER CRIMINAL ACTIVITY OR CONFLICT
OF INTEREST PURSUANT TO SUBDIVISION ONE OF THIS SECTION SHALL PROVIDE
SUCH CURRENT AND NEW EMPLOYEES WITH WRITTEN INFORMATION EXPLAINING THE
REPORTING REQUIREMENTS SET OUT IN SUBDIVISION ONE OF THIS SECTION.
4. ANY PERSON OR OFFICIAL REQUIRED BY THIS SECTION TO REPORT CERTAIN
INFORMATION AS SPECIFIED IN THIS SECTION WHO WILLFULLY FAILS TO DO SO
SHALL BE GUILTY OF A CLASS A MISDEMEANOR.
5. ANY PERSON OR OFFICIAL REQUIRED BY THIS SECTION TO REPORT CERTAIN
INFORMATION AS SPECIFIED IN THIS SECTION WHO KNOWINGLY AND WILLFULLY
FAILS TO DO SO SHALL BE CIVILLY LIABLE FOR THE DAMAGES PROXIMATELY
CAUSED BY SUCH FAILURE.
6. ANY PERSON OR OFFICIAL PARTICIPATING IN GOOD FAITH IN THE MAKING OF
A REPORT UNDER THIS SECTION SHALL HAVE IMMUNITY FROM ANY LIABILITY,
CIVIL OR CRIMINAL, THAT MIGHT OTHERWISE RESULT BY REASON OF SUCH
ACTIONS. FOR THE PURPOSE OF ANY PROCEEDING, CIVIL OR CRIMINAL, THE GOOD
FAITH OF ANY SUCH PERSON OR OFFICIAL REQUIRED TO REPORT UNDER THIS
SECTION SHALL BE PRESUMED, PROVIDED SUCH PERSON OR OFFICIAL WAS ACTING
IN DISCHARGE OF THEIR DUTIES AND WITHIN THE SCOPE OF THEIR EMPLOYMENT,
AND THAT SUCH LIABILITY DID NOT RESULT FROM THE WILLFUL MISCONDUCT OR
GROSS NEGLIGENCE OF SUCH PERSON OR OFFICIAL.
S 3. Subdivision 6 of section 2122 of the education law is amended to
read as follows:
6. Such treasurer shall[, whenever required by such trustees,] report
to [them] SUCH TRUSTEES a detailed [statement] ANNUAL REPORT of the
moneys received by him and of his disbursements, and at the annual meet-
ing of such district he shall render a full account of all moneys
received by him and from what source, and when received, and all
disbursements made by him and to whom and the dates of such disburse-
ments respectively, and the balance of moneys remaining in his hands.
THE TREASURER SHALL CERTIFY IN SUCH ANNUAL REPORT THAT HE HAS: REVIEWED
THE ANNUAL REPORT; THAT BASED ON THE TREASURER'S KNOWLEDGE, THE REPORT
DOES NOT CONTAIN ANY UNTRUE STATEMENT OF A MATERIAL FACT OR OMIT TO
STATE A MATERIAL FACT NECESSARY IN ORDER TO MAKE THE STATEMENTS MADE, IN
A. 3897 12
LIGHT OF THE CIRCUMSTANCES UNDER WHICH SUCH STATEMENTS WERE MADE, NOT
MISLEADING; AND BASED ON SUCH TREASURER'S KNOWLEDGE, THE FINANCIAL
STATEMENTS, AND OTHER FINANCIAL INFORMATION INCLUDED IN THE REPORT,
FAIRLY PRESENT IN ALL MATERIAL RESPECTS THE FINANCIAL CONDITION AND
RESULTS OF OPERATIONS OF THE SCHOOL DISTRICT AS OF, AND FOR, THE PERIODS
PRESENTED IN THE REPORT.
S 4. Section 1720 of the education law is amended by adding a new
subdivision 3 to read as follows:
3. THE TREASURER OF THE DISTRICT SHALL ISSUE AN ANNUAL REPORT WITH A
FULL AND DETAILED ACCOUNT OF ALL MONEYS RECEIVED BY THE BOARD OR SUCH
TREASURER, FOR ITS ACCOUNT AND USE, AND OF ALL THE MONEYS EXPENDED
THEREFOR, GIVING THE ITEMS OF EXPENDITURE IN FULL. THE TREASURER SHALL
CERTIFY IN SUCH ANNUAL REPORT THAT HE OR SHE HAS: REVIEWED THE ANNUAL
REPORT; THAT BASED ON THE TREASURER'S KNOWLEDGE, THE REPORT DOES NOT
CONTAIN ANY UNTRUE STATEMENT OF A MATERIAL FACT OR OMIT TO STATE A MATE-
RIAL FACT NECESSARY IN ORDER TO MAKE THE STATEMENTS MADE, IN LIGHT OF
THE CIRCUMSTANCES UNDER WHICH SUCH STATEMENTS WERE MADE, NOT MISLEADING;
AND BASED ON SUCH TREASURER'S KNOWLEDGE, THE FINANCIAL STATEMENTS, AND
OTHER FINANCIAL INFORMATION INCLUDED IN THE REPORT, FAIRLY PRESENT IN
ALL MATERIAL RESPECTS THE FINANCIAL CONDITION AND RESULTS OF OPERATIONS
OF THE SCHOOL DISTRICT AS OF, AND FOR, THE PERIODS PRESENTED IN THE
REPORT.
S 5. Section 2215 of the education law is amended by adding a new
subdivision 17 to read as follows:
17. TO CERTIFY IN THE ANNUAL REPORT ISSUED PURSUANT TO EITHER SECTION
SEVENTEEN HUNDRED TWENTY OF THIS TITLE OR SECTION TWENTY-ONE HUNDRED
TWENTY-TWO OF THIS TITLE THAT HE HAS: REVIEWED THE ANNUAL REPORT; THAT
BASED ON THE SUPERINTENDENT'S KNOWLEDGE, THE REPORT DOES NOT CONTAIN ANY
UNTRUE STATEMENT OF A MATERIAL FACT OR OMIT TO STATE A MATERIAL FACT
NECESSARY IN ORDER TO MAKE THE STATEMENTS MADE, IN LIGHT OF THE CIRCUM-
STANCES UNDER WHICH SUCH STATEMENTS WERE MADE, NOT MISLEADING; AND BASED
ON SUCH SUPERINTENDENT'S KNOWLEDGE, THE FINANCIAL STATEMENTS, AND OTHER
FINANCIAL INFORMATION INCLUDED IN THE REPORT, FAIRLY PRESENT IN ALL
MATERIAL RESPECTS THE FINANCIAL CONDITION AND RESULTS OF OPERATIONS OF
THE SCHOOL DISTRICT AS OF, AND FOR, THE PERIODS PRESENTED IN THE REPORT.
S 6. The education law is amended by adding a new section 2116-e to
read as follows:
S 2116-E. COMPENSATION COMMITTEES. 1. EVERY SCHOOL DISTRICT, EXCEPT
THOSE EMPLOYING FEWER THAN EIGHT TEACHERS, SHALL ESTABLISH BY A RESOL-
UTION OF THE TRUSTEES OR BOARD OF EDUCATION A LOCAL SCHOOL DISTRICT
COMPENSATION COMMITTEE TO OVERSEE AND REPORT TO THE TRUSTEES OR BOARD ON
THE PROPOSED CONTRACTS OF ALL SCHOOL DISTRICT BARGAINING UNITS, ADMINIS-
TRATORS AND SUPERINTENDENTS.
2. THE COMPENSATION COMMITTEE SHALL BE ESTABLISHED NO LATER THAN JANU-
ARY FIRST, TWO THOUSAND THIRTEEN AS A COMMITTEE OF THE TRUSTEES OR
BOARD, AS AN ADVISORY COMMITTEE, OR AS A COMMITTEE OF THE WHOLE.
3. THE COMPENSATION COMMITTEE SHALL CONSIST OF AT LEAST THREE MEMBERS,
AT LEAST TWO OF WHOM SHALL NOT BE A TRUSTEE OR BOARD MEMBER. THE COMPEN-
SATION COMMITTEE MEMBERS SHALL SERVE WITHOUT COMPENSATION. EMPLOYEES OF
THE SCHOOL DISTRICT ARE PROHIBITED FROM SERVING ON THE COMPENSATION
COMMITTEE. A MEMBER OF A COMPENSATION COMMITTEE SHALL BE DEEMED A SCHOOL
DISTRICT OFFICER FOR THE PURPOSES OF SECTIONS THIRTY-EIGHT HUNDRED ELEV-
EN, THIRTY-EIGHT HUNDRED TWELVE AND THIRTY-EIGHT HUNDRED THIRTEEN OF
THIS CHAPTER, BUT SHALL NOT BE REQUIRED TO BE A RESIDENT OF THE SCHOOL
DISTRICT.
A. 3897 13
4. THE ROLE OF A COMPENSATION COMMITTEE SHALL BE ADVISORY AND ANY
RECOMMENDATIONS 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 COMPENSATION COMMITTEE TO:
(A) REVIEW EVERY CONTRACT BETWEEN THE DISTRICT AND ANY BARGAINING
UNITS, EMPLOYEES, ADMINISTRATORS AND SUPERINTENDENTS NEGOTIATED AFTER
JANUARY FIRST, TWO THOUSAND THIRTEEN;
(B) RECEIVE AND REVIEW PROPOSED CONTRACTS BETWEEN THE DISTRICT AND ANY
BARGAINING UNITS, EMPLOYEES, 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 COMPEN-
SATION 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 COMPENSATION COMMITTEES AS ARE NECESSARY FOR THE PROPER
PERFORMANCE OF THEIR DUTIES.
8. AS LONG AS THE CHANCELLOR OF A SCHOOL DISTRICT IN A CITY HAVING A
POPULATION OF ONE MILLION OR MORE INHABITANTS SHALL ANNUALLY CERTIFY TO
THE COMMISSIONER THAT SUCH DISTRICT HAS A PROCESS FOR REVIEW BY A
COMPENSATION COMMITTEE OF THE DISTRICT'S CONTRACTS WITH ANY BARGAINING
UNITS, EMPLOYEES, ADMINISTRATORS AND SUPERINTENDENTS, THE PROVISIONS OF
THIS SECTION SHALL NOT APPLY TO SUCH SCHOOL DISTRICT.
S 7. 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. WHERE ANY COLLECTIVE BARGAINING
AGREEMENT, EMPLOYMENT CONTRACT OR AMENDMENTS TO SUCH AGREEMENT OR
CONTRACT IS TO BE SUBMITTED TO A DISTRICT MEETING FOR A VOTE, THE SCHOOL
DISTRICT BOARD OR TRUSTEES SHALL GIVE NOTICE, AT LEAST FIVE WEEKS PRIOR
TO SUCH MEETING, THROUGH A DISTRICT-WIDE MAILING OF THE AVAILABILITY OF
THE AGREEMENT, CONTRACT OR AMENDMENT AT PUBLIC LIBRARIES WITHIN THE
DISTRICT, AT THE SCHOOL DISTRICT OFFICES AND ON THE SCHOOL DISTRICT'S
INTERNET WEBSITE, IF ONE EXISTS.
S 8. 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
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 benefits
of all school administrators and supervisors, including business admin-
istrators, superintendents of schools and deputy, assistant, associate
or other superintendents under all existing employment contracts or
collective bargaining agreements AND TEACHERS UNDER EXISTING EMPLOYMENT
CONTRACTS, any and all expenditures associated with the operation of the
office of trustee or board of trustees, the office of the superintendent
A. 3897 14
of schools, general administration, the school business office, consult-
ing 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 salaries and benefits of teachers and
any school administrators or supervisors 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 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, 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 expenditures associated with custodial sala-
ries and benefits, service contracts, supplies, utilities, and mainte-
nance and repairs of school facilities. For the purposes of the develop-
ment 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 9. 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 benefits
of all school administrators and supervisors, including business admin-
istrators, superintendents of schools and deputy, assistant, associate
or other superintendents under all existing employment contracts or
collective bargaining agreements, AND TEACHERS UNDER EXISTING EMPLOYMENT
CONTRACTS any and all expenditures associated with the operation of the
board of education, the office of the superintendent of schools, general
administration, the school business office, consulting costs not direct-
ly 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 salaries and benefits of teachers and any school
administrators or supervisors 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 compro-
mised claims; and all facilities costs of the school district, including
facilities lease expenditures, the annual debt service and total debt
A. 3897 15
for all facilities financed by bonds and notes of the school district,
and the costs of construction, acquisition, reconstruction, rehabili-
tation 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 expenditures 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 board of education 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 10. Subdivision 2 of section 1608 of the education law, as amended
by chapter 640 of the laws of 2008, is amended to read as follows:
2. Such statement shall be completed at least seven days before the
budget hearing at which it is to be presented and copies thereof shall
be prepared and made available, [upon request and] at the school
district offices, at any public library or free association library
within the district and on the school district's internet website, if
one exists, to residents within the district during the period of [four-
teen] THIRTY days immediately preceding the annual meeting and election
or special district meeting at which the budget vote will occur and at
such meeting or hearing. The board shall also as a part of the notice
required by section two thousand three of this chapter give notice of
the date, time and place of the budget hearing and that a copy of such
statement may be obtained by any resident in the district at each
schoolhouse in the district in which school is maintained during certain
designated hours on each day other than a Saturday, Sunday or holiday
during the [fourteen] THIRTY days immediately preceding such meeting.
The board shall include notice of the availability of such statement at
least once during the school year in any district-wide mailing distrib-
uted.
S 11. Subdivision 2 of section 1716 of the education law, as amended
by chapter 640 of the laws of 2008, is amended to read as follows:
2. Such statement shall be completed at least seven days before the
budget hearing at which it is to be presented and copies thereof shall
be prepared and made available, [upon request and] at the school
district offices, at any public library or free association library
within the district and on the school district's internet website, if
one exists, to residents within the district during the period of [four-
teen] THIRTY days immediately preceding the annual meeting and election
or special district meeting at which the budget vote will occur and at
such meeting or hearing. The board shall also as a part of the notice
required by section two thousand four of this chapter give notice of the
date, time and place of the budget hearing and that a copy of such
statement may be obtained by any resident in the district at each
schoolhouse in the district in which school is maintained during certain
designated hours on each day other than a Saturday, Sunday or holiday
during the [fourteen] THIRTY days immediately preceding such meeting.
The board shall include notice of the availability of such statement at
least once during the school year in any district-wide mailing distrib-
uted.
A. 3897 16
S 12. Paragraph (c) of subdivision 3 of section 2116-a of the educa-
tion law, as added by chapter 263 of the laws of 2005, is amended to
read as follows:
(c) Notwithstanding the provisions of subparagraph one of paragraph
(b) of subdivision four of section thirty-five of the general municipal
law, each school district shall (i) prepare a corrective action plan in
response to any findings contained in the annual external audit report
or management letter, or any final audit report issued by the state
comptroller, within ninety days of receipt of such report or letter, and
(ii) to the extent practicable, begin implementation of such corrective
action plan no later than the end of the next fiscal year. EACH SCHOOL
DISTRICT SHALL NOTIFY THE DISTRICT RESIDENTS OF THE AVAILABILITY OF THE
CORRECTIVE ACTION PLAN AT PUBLIC LIBRARIES WITHIN THE DISTRICT, AT THE
SCHOOL DISTRICT OFFICES AND ON THE SCHOOL DISTRICT'S INTERNET WEBSITE,
IF ONE EXISTS. ANY SCHOOL DISTRICT WHICH FAILS TO COMPLY WITH THE
REQUIRED NOTIFICATION OF AVAILABILITY OF THE CORRECTIVE ACTION PLAN
SHALL BE SUBJECT TO A CIVIL PENALTY NOT TO EXCEED FIVE THOUSAND DOLLARS
UPON AN ADMINISTRATIVE DETERMINATION BY THE COMMISSIONER.
S 13. The executive law is amended by adding a new article 4-B to read
as follows:
ARTICLE 4-B
OFFICE OF THE STATE INSPECTOR GENERAL FOR EDUCATION
SECTION 57. ESTABLISHMENT AND ORGANIZATION.
58. FUNCTIONS AND DUTIES.
59. POWERS.
S 57. ESTABLISHMENT AND ORGANIZATION. 1. THERE IS HEREBY ESTABLISHED
THE OFFICE OF THE STATE INSPECTOR GENERAL FOR EDUCATION. THE HEAD OF THE
OFFICE SHALL BE THE EDUCATION INSPECTOR GENERAL, WHO SHALL BE APPOINTED
BY THE BOARD OF THE OFFICE OF THE STATE INSPECTOR GENERAL FOR EDUCA-
TION. SUCH OFFICE SHALL BE INDEPENDENT OF THE DEPARTMENT OF EDUCATION
AND OF ANY OTHER OFFICE, AGENCY, BOARD OR COMMISSION OF THE STATE OR ANY
OF ITS POLITICAL SUBDIVISIONS.
2. THE EDUCATION INSPECTOR GENERAL MAY EMPLOY AND AT THEIR PLEASURE
REMOVE SUCH PERSONNEL AS THEY DEEM NECESSARY FOR THE PERFORMANCE OF THE
OFFICE, AND MAY FIX THEIR COMPENSATION WITH AMOUNTS AVAILABLE THEREFOR.
3. THERE IS HEREBY ESTABLISHED THE BOARD OF THE OFFICE OF THE STATE
INSPECTOR GENERAL FOR EDUCATION WHICH SHALL CONSIST OF ELEVEN MEMBERS,
AND SHALL HAVE AND EXERCISE THE POWERS AND DUTIES OF THE OFFICE OF THE
STATE INSPECTOR GENERAL FOR EDUCATION.
4. THE BOARD MEMBERS SHALL BE APPOINTED AS FOLLOWS:
(A) THREE MEMBERS SHALL BE APPOINTED BY THE GOVERNOR, ONE OF WHOM
SHALL BE DESIGNATED BY THE GOVERNOR AS THE CHAIR OF THE BOARD;
(B) THREE MEMBERS SHALL BE APPOINTED BY THE TEMPORARY PRESIDENT OF THE
SENATE;
(C) THREE MEMBERS SHALL BE APPOINTED BY THE SPEAKER OF THE ASSEMBLY;
(D) ONE MEMBER SHALL BE APPOINTED BY THE MINORITY LEADER OF THE ASSEM-
BLY; AND
(E) ONE MEMBER SHALL BE APPOINTED BY THE MINORITY LEADER OF THE
SENATE.
5. THE BOARD MEMBERS SHALL SERVE FOR TERMS OF FIVE YEARS.
6. THE CHAIR OF THE BOARD OR ANY FIVE MEMBERS THEREOF MAY CALL A MEET-
ING OF THE BOARD.
7. ANY VACANCY OCCURRING ON THE BOARD SHALL BE FILLED WITHIN SIXTY
DAYS OF ITS OCCURRENCE, IN THE SAME MANNER AS THE MEMBER WHOSE VACANCY
IS BEING FILLED WAS APPOINTED. A PERSON APPOINTED TO FILL A VACANCY
A. 3897 17
OCCURRING OTHER THAN BY EXPIRATION OF A TERM OF OFFICE SHALL BE
APPOINTED FOR THE UNEXPIRED TERM OF THE MEMBER HE OR SHE SUCCEEDS.
8. SIX MEMBERS OF THE BOARD SHALL CONSTITUTE A QUORUM AND THE BOARD
SHALL HAVE THE POWER TO ACT BY MAJORITY VOTE OF THE TOTAL NUMBER OF
MEMBERS OF THE BOARD WITHOUT VACANCY.
9. THE BOARD MEMBERS SHALL NOT RECEIVE COMPENSATION BUT SHALL BE REIM-
BURSED FOR REASONABLE EXPENSES INCURRED IN THE PERFORMANCE OF THEIR
OFFICIAL DUTIES.
10. THE BOARD SHALL APPOINT AN EDUCATION INSPECTOR GENERAL WHO SHALL
PERFORM THE POWERS AND DUTIES SET FORTH IN SECTIONS FIFTY-EIGHT AND
FIFTY-NINE OF THIS ARTICLE, AND WHO SHALL SERVE FOR A TERM OF FIVE
YEARS AND MAY ONLY BE DISMISSED FOR CAUSE OR BY A THREE-QUARTERS VOTE OF
THE BOARD. THE BOARD MAY FIX THE COMPENSATION OF THE EDUCATION INSPEC-
TOR GENERAL.
11. NO BOARD MEMBER, NOR THE EDUCATION INSPECTOR GENERAL, SHALL HOLD
ANY ELECTED PUBLIC OFFICE OR OFFICE IN ANY POLITICAL PARTY, NOR SHALL
ANY MEMBER BE AN EMPLOYEE OF OR UNDER THE SUPERVISION OF ANY PERSON WHO
HOLDS SUCH ELECTED PUBLIC OFFICE OR OFFICE OF A POLITICAL PARTY. NO
MEMBER OF THE BOARD SHALL SERVE IN ANY PUBLIC OR POLITICAL OFFICE WITH-
IN FIVE YEARS OF THE MEMBER'S PERIOD OF SERVICE.
12. THE EDUCATION INSPECTOR GENERAL SHALL, PRIOR TO THEIR APPOINTMENT,
HAVE HAD AT LEAST TEN YEARS EXPERIENCE IN AUDITING OR LAW ENFORCEMENT OR
INVESTIGATION, OR IN PROSECUTING OR AIDING IN THE PROSECUTION OF FRAUD.
13. MEMBERS OF THE BOARD SHALL, PRIOR TO THEIR APPOINTMENT, HAVE HAD
AT LEAST THREE YEARS EXPERIENCE IN AUDITING OR INVESTIGATION OF GOVERN-
MENTAL OR SCHOOL DISTRICT OPERATIONS, OR IN THE PRACTICE OF LAW, LAW
ENFORCEMENT OR IN SERVICES RELATED TO DEVELOPMENT AND MANAGEMENT OF
INFORMATION TECHNOLOGY OR DATABASE CREATION AND MAINTENANCE.
S 58. FUNCTIONS AND DUTIES. THE EDUCATION INSPECTOR GENERAL SHALL
HAVE THE FOLLOWING DUTIES AND RESPONSIBILITIES:
1. TO RECEIVE AND INVESTIGATE COMPLAINTS FROM ANY SOURCE, OR UPON HIS
OR HER OWN INITIATIVE, CONCERNING ALLEGATIONS OF CORRUPTION, FINANCIAL
IMPROPRIETIES, UNETHICAL CONDUCT, MISCONDUCT OR OTHER CRIMINAL CONDUCT
WITHIN PUBLIC SCHOOL DISTRICTS OUTSIDE OF A CITY WITH A POPULATION OF
ONE MILLION OR MORE;
2. TO INVESTIGATE AND REPORT ON CORRUPTION AND OTHER CRIMINAL ACTIV-
ITY, SCHOOL BOARD ELECTION FRAUD, BIDDING IRREGULARITIES AND CONFLICTS
OF INTEREST BY PUBLIC SCHOOL DISTRICT EMPLOYEES WHOSE ACTIONS RELATE TO
THEIR EMPLOYMENT, PERSONS OR ENTITIES DOING BUSINESS WITH A PUBLIC
SCHOOL DISTRICT CONCERNING THEIR TRANSACTIONS WITH THE SCHOOL DISTRICT,
AND SCHOOL BOARD MEMBERS WHOSE ACTIONS RELATE TO THEIR OFFICE;
3. TO DETERMINE WITH RESPECT TO SUCH ALLEGATIONS WHETHER DISCIPLINARY
ACTION, CIVIL OR CRIMINAL PROSECUTION, OR FURTHER INVESTIGATION BY AN
APPROPRIATE FEDERAL, STATE OR LOCAL AGENCY IS WARRANTED, AND TO ASSIST
IN SUCH INVESTIGATIONS;
4. TO REVIEW AND EXAMINE PERIODICALLY THE POLICIES AND PROCEDURES OF
PUBLIC SCHOOL DISTRICTS WITH REGARD TO THE PREVENTION AND DETECTION OF
CORRUPTION, FINANCIAL IMPROPRIETIES, UNETHICAL CONDUCT, MISCONDUCT,
OTHER CRIMINAL CONDUCT, SCHOOL BOARD ELECTION FRAUD, BIDDING IRREGULARI-
TIES AND CONFLICTS OF INTEREST OR ABUSE;
5. TO RECOMMEND REMEDIAL ACTION TO PREVENT OR ELIMINATE CORRUPTION,
FINANCIAL IMPROPRIETIES, UNETHICAL CONDUCT, MISCONDUCT, OTHER CRIMINAL
CONDUCT, SCHOOL BOARD ELECTION FRAUD, BIDDING IRREGULARITIES, CONFLICTS
OF INTEREST OR ABUSE BY PUBLIC SCHOOL DISTRICT OFFICIALS AND EMPLOYEES;
6. TO ESTABLISH PROGRAMS FOR TRAINING PUBLIC SCHOOL OFFICIALS AND
EMPLOYEES REGARDING THE PREVENTION AND ELIMINATION OF CORRUPTION, FINAN-
A. 3897 18
CIAL IMPROPRIETIES, UNETHICAL CONDUCT, MISCONDUCT, OTHER CRIMINAL
CONDUCT, SCHOOL BOARD ELECTION FRAUD, BIDDING IRREGULARITIES AND
CONFLICTS OF INTEREST OR ABUSE;
7. TO PREPARE AN ANNUAL REPORT THAT PROVIDES THE RESULTS OF THE EDUCA-
TION INSPECTOR GENERAL'S FINDINGS WITH RESPECT TO ALL INVESTIGATIONS
AND DETAILED ANALYSIS OF THE CURRENT FINANCIAL STATUS OF THOSE SCHOOL
DISTRICTS THAT HAVE BEEN REVIEWED;
8. TO INCLUDE IN SUCH REPORT ANY FINDINGS REGARDING THE FINANCIAL
PRACTICES OF THE SCHOOL DISTRICT THAT THE EDUCATION INSPECTOR GENERAL
BELIEVES VIOLATED, OR COULD POTENTIALLY VIOLATE, EXISTING STATE RULES
OR REGULATIONS OR MAY BE OF CONCERN IN THAT INCOMPETENCE OR LACK OF
TRAINING MAY RESULT IN FINANCIAL PRACTICES THAT VIOLATE STATE RULES AND
REGULATIONS;
9. TO ISSUE THE REPORT TO THE LEGISLATURE, THE COMPTROLLER AND THE
DEPARTMENT OF EDUCATION WITH EACH ANNUAL REPORT POSTED ON A PUBLIC
INTERNET WEBSITE FOR AT LEAST FIVE YEARS FROM THE DATE OF ISSUANCE.
S 59. POWERS. THE EDUCATION INSPECTOR GENERAL SHALL HAVE THE POWER
TO:
1. SUBPOENA AND ENFORCE THE ATTENDANCE OF WITNESSES, INCLUDING THE
POWER TO SUBPOENA DOCUMENTS AND RECORDS NECESSARY TO ANY INVESTIGATION
FROM ANY PUBLIC SCHOOL DISTRICT OUTSIDE OF A CITY WITH A POPULATION OF
ONE MILLION OR MORE AND FROM VENDORS WHO DO BUSINESS WITH SUCH PUBLIC
SCHOOL DISTRICTS;
2. ADMINISTER OATHS OR AFFIRMATIONS AND EXAMINE WITNESSES UNDER OATH;
3. REQUIRE THE PRODUCTION OF ANY BOOKS AND PAPERS DEEMED RELEVANT OR
MATERIAL TO ANY INVESTIGATION, EXAMINATION OR REVIEW;
4. NOTWITHSTANDING ANY LAW TO THE CONTRARY, EXAMINE AND COPY OR REMOVE
DOCUMENTS OR RECORDS OF ANY KIND PREPARED, MAINTAINED OR HELD BY ANY
PUBLIC SCHOOL DISTRICT COVERED BY THIS ARTICLE;
5. REQUIRE ANY PUBLIC SCHOOL DISTRICT EMPLOYEE TO ANSWER QUESTIONS
CONCERNING ANY MATTER RELATED TO THE PERFORMANCE OF HIS OR HER OFFICIAL
DUTIES. NO STATEMENT OR OTHER EVIDENCE DERIVED THEREFROM MAY BE USED
AGAINST SUCH OFFICER OR EMPLOYEE IN ANY SUBSEQUENT CRIMINAL PROSECUTION
OTHER THAN FOR PERJURY OR CONTEMPT ARISING FROM SUCH TESTIMONY. THE
REFUSAL OF ANY OFFICER OR EMPLOYEE TO ANSWER QUESTIONS SHALL BE CAUSE
FOR REMOVAL FROM OFFICE OR EMPLOYMENT OR OTHER APPROPRIATE PENALTY;
6. MONITOR THE IMPLEMENTATION BY PUBLIC SCHOOL DISTRICTS OF ANY RECOM-
MENDATIONS MADE BY THE EDUCATION INSPECTOR GENERAL;
7. PERFORM ANY OTHER FUNCTIONS THAT ARE NECESSARY OR APPROPRIATE TO
FULFILL THE DUTIES AND RESPONSIBILITIES OF THE OFFICE.
S 14. Subparagraphs 2 and 3 of paragraph b of subdivision 2 of section
33 of the general municipal law, as added by chapter 267 of the laws of
2005, are amended and a new subparagraph 4 is added to read as follows:
(2) assessing the current financial practices of school districts,
BOCES and charter schools to ensure that they are consistent with estab-
lished standards, [and]
(3) determining that school districts, BOCES, and charter schools
provide for adequate protections against any fraud, theft, or profes-
sional misconduct[.], AND
(4) AUDITING FEDERAL AND STATE GRANT PROGRAM EXPENDITURES IN ALL
SCHOOL DISTRICTS, BOCES AND CHARTER SCHOOLS.
S 15. Paragraph d of subdivision 2 of section 33 of the general munic-
ipal law, as added by chapter 267 of the laws of 2005, is amended to
read as follows:
d. The office of the state comptroller shall upon making a finding of
misconduct refer any findings of fraud, abuse or other conduct consti-
A. 3897 19
tuting a crime that are uncovered during the course of an audit, as
appropriate, to the commissioner of education, THE NEW YORK STATE
INSPECTOR GENERAL FOR EDUCATION, the charter entity, the attorney gener-
al, United States attorney or district attorney having jurisdiction for
appropriate action, together with any documents supporting the auditors'
findings.
S 16. The labor law is amended by adding a new section 742 to read as
follows:
S 742. PROHIBITION; PUBLIC SCHOOL DISTRICT EMPLOYER WHO PENALIZES
EMPLOYEES BECAUSE OF COMPLAINTS OF EMPLOYER MALFEASANCE. 1. DEFI-
NITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS:
(A) "EMPLOYEE" MEANS ANY PERSON WHO PERFORMS SERVICES FOR AND UNDER
THE CONTROL AND DIRECTION OF ANY PUBLIC SCHOOL DISTRICT OUTSIDE OF A
CITY WITH A POPULATION OF ONE MILLION OR MORE FOR WAGES OR OTHER REMUN-
ERATION.
(B) "EMPLOYER" MEANS ANY PUBLIC SCHOOL DISTRICT OUTSIDE OF A CITY WITH
A POPULATION OF ONE MILLION OR MORE.
(C) "AGENT" MEANS ANY INDIVIDUAL, PARTNERSHIP, ASSOCIATION, CORPO-
RATION, OR GROUP OF PERSONS ACTING ON BEHALF OF AN EMPLOYER.
(D) "PUBLIC BODY" MEANS:
(1) THE UNITED STATES CONGRESS, ANY STATE LEGISLATURE, OR ANY ELECTED
LOCAL GOVERNMENTAL BODY, OR ANY MEMBER OR EMPLOYEE THEREOF;
(2) THE NEW YORK STATE INSPECTOR GENERAL FOR EDUCATION;
(3) THE STATE COMPTROLLER;
(4) THE ATTORNEY GENERAL;
(5) ANY FEDERAL, STATE OR LOCAL REGULATORY, ADMINISTRATIVE OR PUBLIC
AGENCY OR AUTHORITY, OR INSTRUMENTALITY THEREOF;
(6) ANY FEDERAL, STATE OR LOCAL LAW ENFORCEMENT AGENCY, PROSECUTORIAL
OFFICE, OR POLICE OR PEACE OFFICER;
(7) ANY FEDERAL, STATE OR LOCAL DEPARTMENT OF AN EXECUTIVE BRANCH OF
GOVERNMENT; OR
(8) ANY DIVISION, BOARD, BUREAU, OFFICE, COMMITTEE OR COMMISSION OF
ANY OF THE PUBLIC BODIES DESCRIBED IN SUBPARAGRAPH ONE, TWO, THREE,
FOUR, FIVE, SIX OR SEVEN OF THIS PARAGRAPH.
(E) "RETALIATORY ACTION" MEANS THE DISCHARGE, SUSPENSION, DEMOTION,
PENALIZATION OR DISCRIMINATION AGAINST AN EMPLOYEE, OR OTHER ADVERSE
EMPLOYMENT ACTION TAKEN AGAINST AN EMPLOYEE IN THE TERMS AND CONDITIONS
OF EMPLOYMENT.
(F) "SUPERVISOR" MEANS ANY PERSON WITHIN AN EMPLOYER'S ORGANIZATION
WHO HAS THE AUTHORITY TO DIRECT AND CONTROL THE WORK PERFORMANCE OF AN
EMPLOYEE, OR WHO HAS THE AUTHORITY TO TAKE CORRECTIVE ACTION REGARDING
FRAUD, CRIMINAL ACTIVITY OR OTHER MALFEASANCE TO WHICH AN EMPLOYEE
SUBMITS A COMPLAINT.
2. RETALIATORY ACTION PROHIBITED. NOTWITHSTANDING ANY OTHER PROVISION
OF LAW, NO EMPLOYER SHALL TAKE RETALIATORY ACTION AGAINST ANY EMPLOYEE
BECAUSE THE EMPLOYEE DOES ANY OF THE FOLLOWING:
(A) DISCLOSES OR THREATENS TO DISCLOSE TO A SUPERVISOR, OR TO A PUBLIC
BODY AN ACTIVITY, POLICY OR PRACTICE OF THE EMPLOYER OR AGENT THAT THE
EMPLOYEE, IN GOOD FAITH, REASONABLY BELIEVES CONSTITUTES FRAUD, CRIMI-
NAL ACTIVITY OR OTHER MALFEASANCE; OR
(B) OBJECTS TO, OR REFUSES TO PARTICIPATE IN ANY ACTIVITY, POLICY OR
PRACTICE OF THE EMPLOYER OR AGENT THAT THE EMPLOYEE, IN GOOD FAITH,
REASONABLY BELIEVES CONSTITUTES FRAUD, CRIMINAL ACTIVITY OR OTHER
MALFEASANCE.
A. 3897 20
3. ENFORCEMENT. AN EMPLOYEE MAY SEEK ENFORCEMENT OF THIS SECTION
PURSUANT TO PARAGRAPH (E) OF SUBDIVISION FOUR OF SECTION SEVEN HUNDRED
FORTY OF THIS ARTICLE.
4. RELIEF. IN ANY COURT ACTION BROUGHT PURSUANT TO THIS SECTION IT
SHALL BE A DEFENSE THAT THE PERSONNEL ACTION WAS PREDICATED UPON GROUNDS
OTHER THAN THE EMPLOYEE'S EXERCISE OF ANY RIGHTS PROTECTED BY THIS
SECTION.
S 17. Subdivision 4 of section 740 of the labor law is amended by
adding a new paragraph (e) to read as follows:
(E) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPHS (A) AND (C) OF THIS
SUBDIVISION, AN EMPLOYEE WHO HAS BEEN THE SUBJECT OF A RETALIATORY
ACTION BY AN EMPLOYER IN VIOLATION OF SECTION SEVEN HUNDRED FORTY-TWO OF
THIS ARTICLE MAY INSTITUTE A CIVIL ACTION IN A COURT OF COMPETENT JURIS-
DICTION FOR RELIEF AS SET FORTH IN SUBDIVISION FIVE OF THIS SECTION
WITHIN TWO YEARS AFTER THE ALLEGED RETALIATORY PERSONNEL ACTION WAS
TAKEN. IN ADDITION TO THE RELIEF SET FORTH IN SUCH SUBDIVISION FIVE, THE
COURT, IN ITS DISCRETION, BASED UPON A FINDING THAT THE EMPLOYER ACTED
IN BAD FAITH IN THE RETALIATORY ACTION, MAY ORDER THE EMPLOYER TO TERMI-
NATE THE SUPERVISOR WHO RETALIATED AGAINST THE EMPLOYEE.
S 18. The penal law is amended by adding a new section 190.72 to read
as follows:
S 190.72 DEFRAUDING A PUBLIC PENSION PLAN.
A PERSON IS GUILTY OF DEFRAUDING A PUBLIC PENSION PLAN WHEN HE OR SHE
ENGAGES IN A SCHEME CONSTITUTING A SYSTEMATIC ONGOING COURSE OF CONDUCT
WITH INTENT TO OBTAIN A BENEFIT OR ASSET, OR ASSIST 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 TO PURSUANT TO THE
RESTRICTION OF SECTION TWO HUNDRED ELEVEN OF THE RETIREMENT AND SOCIAL
SECURITY LAW.
DEFRAUDING A PUBLIC PENSION PLAN IS A CLASS E FELONY.
S 19. Section 211 of the retirement and social security law is amended
by adding a new subdivision 9 to read as follows:
9. A RETIRED PERSON RECEIVING A RETIREMENT ALLOWANCE WHO IS EMPLOYED
AND EARNING COMPENSATION IN A PUBLIC SERVICE POSITION OR POSITIONS WITH
THE TOTAL COMPENSATION EXCEEDING THE LIMITATIONS SET FORTH IN SECTION
TWO HUNDRED TWELVE OF THIS ARTICLE AND SUCH PERSON HAS NOT OBTAINED THE
REQUISITE WAIVER SET FORTH IN THIS SECTION, AS WELL AS ANY PERSON WHO
KNOWINGLY ASSISTS ANOTHER PERSON IN RECEIVING A RETIREMENT ALLOWANCE
WHILE RECEIVING TOTAL COMPENSATION IN A PUBLIC SERVICE POSITION OR POSI-
TIONS EXCEEDING THE LIMITS OF SECTION TWO HUNDRED TWELVE OF THIS ARTICLE
AND NOT HAVING OBTAINED THE REQUISITE WAIVER, IS GUILTY OF LARCENY AND
PUNISHABLE AS PROVIDED IN THE PENAL LAW.
S 20. Section 217 of the retirement and social security law, as added
by chapter 640 of the laws of 2008, is amended to read as follows:
S 217. Reporting requirements; school salary transparency and disclo-
sure. 1. A school district [and], a board of cooperative educational
services AND A COLLEGE AS DEFINED IN SECTION TWO OF THE EDUCATION LAW
shall report all money earned by a retired person in their employ that
is in excess of the earnings limitation outlined in section two hundred
twelve of this article to the retirement system administered by the
state or any of its political subdivisions from whom such retired person
is collecting their retirement allowance.
2. A school district or a board of cooperative educational services
employing a retired person who is eligible to collect or is already
collecting a retirement allowance from a retirement system administered
by the state or any of its political subdivisions shall report on [an
A. 3897 21
annual] A MONTHLY basis to the retirement system paying such retirement
allowance to such retired person [and], to the state comptroller AND TO
THE NEW YORK STATE INSPECTOR GENERAL. This report shall consist of the
re-employed retiree's name, date of birth, place of employment, current
position and all earnings.
S 21. The general municipal law is amended by adding a new article
2-A to read as follows:
ARTICLE 2-A
MUNICIPAL COOPERATION PROGRAM
SECTION 25. MUNICIPAL COOPERATION PROGRAM.
S 25. MUNICIPAL COOPERATION PROGRAM. 1. ESTABLISHMENT. THERE ARE
HEREBY ESTABLISHED A STATE CONFERENCE ON MUNICIPAL COOPERATION AND EIGHT
REGIONAL COMMISSIONS ON MUNICIPAL COOPERATION. THE REGIONAL COMMISSIONS
SHALL BE AS FOLLOWS AND SHALL CONSIST OF THE FOLLOWING COUNTIES:
(A) LONG ISLAND - NEW YORK: BRONX, KINGS, NASSAU, NEW YORK, QUEENS,
RICHMOND AND SUFFOLK.
(B) HUDSON VALLEY: DUTCHESS, ORANGE, PUTNAM, ROCKLAND, SULLIVAN,
ULSTER AND WESTCHESTER.
(C) CAPITAL: COLUMBIA, GREENE, ALBANY, SCHOHARIE, RENSSELAER, SCHENEC-
TADY, MONTGOMERY, FULTON, SARATOGA AND WASHINGTON.
(D) NORTH COUNTRY: WARREN, ESSEX, CLINTON, FRANKLIN, HAMILTON, SAINT
LAWRENCE, LEWIS, OSWEGO AND JEFFERSON.
(E) CENTRAL - MOHAWK VALLEY: OTSEGO, HERKIMER, ONEIDA, MADISON, CORT-
LAND, ONONDAGA AND CAYUGA.
(F) SOUTHERN TIER: DELAWARE, BROOME, CHENANGO, TIOGA, TOMPKINS,
SCHUYLER, CHEMUNG, ALLEGANY AND STEUBEN.
(G) FINGER LAKES: WAYNE, SENECA, YATES, ONTARIO, LIVINGSTON AND
MONROE.
(H) WESTERN: CATTARAUGUS, CHAUTAUQUA, ERIE, WYOMING, GENESEE, ORLEANS
AND NIAGARA.
2. STATE CONFERENCE ON MUNICIPAL COOPERATION MEMBERSHIP. (A) THE
STATE CONFERENCE ON MUNICIPAL COOPERATION SHALL CONSIST OF NINE MEMBERS.
THE SECRETARY OF STATE SHALL BE A MEMBER OF THE CONFERENCE AND SHALL
SERVE AS ITS CHAIR. THE VICE CHAIR OF EACH REGIONAL COMMISSION SHALL
SERVE AS A MEMBER OF THE STATE CONFERENCE ON MUNICIPAL COOPERATION.
(B) THE STATE CONFERENCE SHALL ALLOCATE FUNDS PURSUANT TO THIS SECTION
TO EACH REGIONAL COMMISSION. THE STATE CONFERENCE SHALL PROMULGATE ANY
RULES AND REGULATIONS NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS
SECTION; HOWEVER SUCH RULES AND REGULATIONS, AND ANY CHANGES THERETO
SHALL NOT TAKE EFFECT UNTIL APPROVED BY A MAJORITY VOTE OF THE GOVERNOR,
TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF THE ASSEMBLY, MINORITY
LEADER OF THE SENATE AND MINORITY LEADER OF THE ASSEMBLY.
3. REGIONAL COMMISSIONS MEMBERSHIP. (A) EACH REGIONAL COMMISSION
SHALL CONSIST OF NINE MEMBERS, APPOINTED AS FOLLOWS:
(I) TWO MEMBERS SHALL BE APPOINTED BY THE GOVERNOR, ONE OF WHOM SHALL
BE THE CHAIR OF THE REGIONAL COMMISSION AND THE OTHER SHALL SERVE AS
VICE CHAIR;
(II) TWO MEMBERS SHALL BE APPOINTED BY THE TEMPORARY PRESIDENT OF THE
SENATE;
(III) TWO MEMBERS SHALL BE APPOINTED BY THE SPEAKER OF THE ASSEMBLY;
(IV) ONE MEMBER SHALL BE APPOINTED BY THE MINORITY LEADER OF THE
SENATE;
(V) ONE MEMBER SHALL BE APPOINTED BY THE MINORITY LEADER OF THE ASSEM-
BLY; AND
(VI) ONE MEMBER SHALL BE APPOINTED BY THE STATE COMPTROLLER.
A. 3897 22
(B) EACH REGIONAL COMMISSION MAY CONDUCT BUSINESS WITH A QUORUM OF
MEMBERS IN OFFICE AT THE TIME.
(C) EACH MEMBER OF A REGIONAL COMMISSION SHALL SERVE AT THE PLEASURE
OF HIS OR HER APPOINTING AUTHORITY.
(D) MEMBERS OF REGIONAL COMMISSIONS SHALL RECEIVE NO COMPENSATION FOR
THEIR SERVICE BUT SHALL BE ALLOWED THEIR ACTUAL AND NECESSARY EXPENSES
INCURRED IN THE PERFORMANCE OF THEIR DUTIES.
(E) EVERY MEMBER OF A REGIONAL COMMISSION SHALL RESIDE WITHIN THE
REGION REGULATED BY THE REGIONAL COMMISSION UPON WHICH HE OR SHE SERVES.
(F) EVERY MEMBER OF A REGIONAL COMMISSION WHO IS AN ELECTED OFFICIAL
SHALL RECUSE HIMSELF OR HERSELF FROM ANY MEETING OF THE COMMISSION DEAL-
ING DIRECTLY WITH AN ISSUE IMPACTING UPON THE MUNICIPALITY WHICH ELECTED
SUCH MEMBER.
(G) A TWO-THIRDS MAJORITY OF EACH REGIONAL COMMISSION SHALL APPOINT AN
EXECUTIVE DIRECTOR, WHO SHALL CONDUCT THE BUSINESS OF SUCH REGIONAL
COMMISSION UNDER THE SUPERVISION OF THE REGIONAL COMMISSION. THE EXECU-
TIVE DIRECTOR SHALL ALSO BE AUTHORIZED TO HIRE SUCH ADDITIONAL STAFF AS
NECESSARY TO EXECUTE THE WORK OF THE REGIONAL COMMISSION. THE EXECUTIVE
DIRECTOR MAY BE REMOVED ONLY BY A THREE-QUARTERS VOTE OF THE MEMBERS OF
THE REGIONAL COMMISSION.
(H) THE PURPOSE OF THE REGIONAL COMMISSIONS SHALL BE TO:
(I) INCREASE COMMUNICATION BETWEEN LOCAL GOVERNMENTS TO DISCUSS SHARED
SERVICES, CONSOLIDATION, AND THE MERGER OF LOCAL GOVERNMENTS;
(II) PROVIDE TECHNICAL AND FINANCIAL ASSISTANCE AND TRAINING TO LOCAL
GOVERNMENTS; AND
(III) IDENTIFY STATE AND LOCAL LAWS WHICH MUST BE CHANGED TO ACHIEVE
BUDGETARY AND PROPERTY TAX SAVINGS THROUGH SHARING ARRANGEMENTS.
(I) THE REGIONAL COMMISSIONS MAY AWARD GRANTS TO LOCAL GOVERNMENTS
WHICH SEEK TO WORK TOGETHER TO ACHIEVE SAVINGS. EACH REGIONAL COMMISSION
SHALL PROVIDE GRANTS IN THE FOLLOWING MANNER: TWENTY PERCENT OF ALL
FUNDS AVAILABLE FOR THE PROVISION OF GRANTS SHALL BE USED FOR RESEARCH
GRANTS, TEN PERCENT FOR IMPLEMENTATION GRANTS, AND SEVENTY PERCENT FOR
COOPERATION REWARD GRANTS. A REGIONAL COMMISSION MAY ALTER THIS ALLO-
CATION WITH THE APPROVAL OF AT LEAST TWO-THIRDS OF ITS MEMBERS.
4. RESEARCH GRANTS. EACH REGIONAL COMMISSION SHALL SEEK TO PROVIDE THE
ASSISTANCE NECESSARY TO RESEARCH THE EFFICACY OF COOPERATIVE EFFORTS
BETWEEN LOCALITIES. IF SUCH RESEARCH IS BEYOND THE SCOPE OF THE COMMIS-
SION, THEN THE LOCALITIES MAY SEEK A FIFTY PERCENT MATCHING GRANT FROM
THE REGIONAL COMMISSION TO HIRE A PUBLIC, PRIVATE OR ACADEMIC ENTITY TO
CONDUCT SUCH RESEARCH. THE PROVISION OF ANY RESEARCH GRANT, AND THE
ENTITY WHICH SHALL CONDUCT THE RESEARCH, SHALL BE SUBJECT TO APPROVAL BY
THE REGIONAL COMMISSION.
5. IMPLEMENTATION GRANTS. MUNICIPALITIES WHICH HAVE CHOSEN TO EXECUTE
THE COOPERATIVE EFFORT, SHALL IDENTIFY COSTS OF IMPLEMENTING THE EFFORT
AND REQUEST A GRANT FROM THE REGIONAL COMMISSION. COSTS ELIGIBLE FOR
GRANTS MAY INCLUDE, BUT SHALL NOT BE LIMITED TO: EARLY RETIREMENT OR
RESIGNATION INCENTIVES; PURCHASES OF BUILDINGS OR EQUIPMENT; OR HIRING
OF TEMPORARY EMPLOYEES TO ASSIST IN CONSOLIDATION. SUCH GRANTS SHALL BE
SUBJECT TO APPROVAL BY THE REGIONAL COMMISSION. IMPLEMENTATION GRANTS
SHALL BE AWARDED IN THE FOLLOWING MANNER:
(A) GRANTS TO FUND THE CONSOLIDATION OF SERVICES BETWEEN MUNICI-
PALITIES OR THE PROVISION OF SERVICES FROM ONE MUNICIPALITY TO ANOTHER.
SUCH GRANTS SHALL EQUAL FIFTY PERCENT OF THE COSTS ASSOCIATED WITH SUCH
MERGER OR CONSOLIDATION; AND
(B) GRANTS TO FUND MERGERS BETWEEN MUNICIPALITIES. SUCH GRANTS SHALL
NOT EXCEED ONE HUNDRED PERCENT OF THE COSTS ASSOCIATED WITH SUCH MERGER.
A. 3897 23
6. COOPERATION REWARD GRANTS. (A) THE REGIONAL COMMISSION MAY AWARD
GRANTS TO MUNICIPALITIES WHICH HAVE ELECTED TO EXECUTE A COOPERATIVE
EFFORT. MUNICIPALITIES WHICH HAVE ELECTED TO EXECUTE A COOPERATIVE
EFFORT SHALL IDENTIFY ONE OF THE PARTICIPATING MUNICIPALITIES, WHICH
SHALL ACT AS A LEAD AGENT, WHICH SHALL IDENTIFY THE SAVINGS WHICH ARE
EXPECTED TO ACCRUE TO THE MUNICIPALITIES AND REQUEST A GRANT IN THE
AMOUNT DETERMINED PURSUANT TO THIS SUBDIVISION, AND SUBMIT A REPORT TO
THEIR REGIONAL COMMISSION, WHICH SHALL BE REVIEWED AND ADJUSTED ACCORD-
INGLY BY THE REGIONAL COMMISSION. AT THAT TIME, THE REGIONAL COMMISSION
MAY APPROVE OR REJECT THE GRANT APPLICATION ACCORDING TO APPLICABLE
PROVISIONS OF THIS SECTION AND ANY APPLICABLE RULES OR REGULATIONS WHICH
MAY BE PROMULGATED BY THE STATE CONFERENCE AND APPROVED BY MAJORITY VOTE
OF THE GOVERNOR AND LEGISLATIVE LEADERS.
(B) IF APPROVED, AFTER THE END OF THE FIRST YEAR OF THE CONSOLIDATION,
THE LEAD AGENT SHALL PRODUCE A REPORT WHICH SHALL STATE THE SAVINGS
WHICH THE MUNICIPALITIES HAVE EXPERIENCED DURING THE YEAR. THAT REPORT
SHALL BE SUBMITTED TO THEIR REGIONAL COMMISSION, WHICH SHALL VALIDATE
THE SAVINGS WHICH HAVE ACCRUED TO THE LOCALITIES. SUCH SAVINGS WILL BE
CALCULATED BY COMPARING THE TOTAL AMOUNT SPENT FOR SERVICES WHICH HAVE
BEEN CONSOLIDATED WITH THE PROJECTED COST OF THE SERVICES WHICH HAVE
BEEN CONSOLIDATED IF THE CONSOLIDATION HAD NOT OCCURRED, IN THE CASE OF
FUNCTIONAL CONSOLIDATIONS; OR THE COMBINED BUDGETS OF THE MERGED MUNICI-
PALITY, WITH THE COMBINED BUDGETS OF THE MUNICIPALITIES WHICH HAVE BEEN
MERGED IF THE MERGER HAD NOT OCCURRED, IN THE CASE OF MERGERS.
(C) THE REGIONAL COMMISSION SHALL CERTIFY THE VALIDITY OF THE SAVINGS
IDENTIFIED BY THE LEAD AGENT. REGIONAL COMMISSIONS MAY REQUEST THE
ASSISTANCE OF THE STATE COMPTROLLER TO VALIDATE THE SAVINGS. AFTER SUCH
SAVINGS ARE VALIDATED, THE GRANT MAY BE REWARDED TO THE MUNICIPALITIES
IN AN AMOUNT DETERMINED PURSUANT TO THIS SUBDIVISION.
(D) SUCH PROCESS SHALL BE REPEATED EACH YEAR, FOR A PERIOD OF FIVE
YEARS IN THE CASE OF FUNCTIONAL CONSOLIDATIONS AND SEVEN YEARS IN THE
CASE OF MERGERS.
(E) COOPERATION REWARD GRANTS SHALL BE DETERMINED ON THE FOLLOWING
BASIS:
(I) GRANTS TO REWARD FUNCTIONAL CONSOLIDATION, I.E., CONSOLIDATION OF
SERVICES BETWEEN MUNICIPALITIES. SUCH GRANTS SHALL EQUAL FIFTY PERCENT
OF THE IDENTIFIED AND VALIDATED SAVINGS ASSOCIATED WITH SUCH CONSOL-
IDATION; AND
(II) GRANTS TO REWARD MERGERS BETWEEN MUNICIPALITIES. SUCH GRANTS
SHALL NOT EXCEED ONE HUNDRED PERCENT OF THE IDENTIFIED AND VALIDATED
SAVINGS ASSOCIATED WITH SUCH MERGER.
7. COOPERATION EFFORTS. NO PROVISION OF THIS SECTION SHALL PRECLUDE A
SCHOOL DISTRICT OR SPECIAL TAX DISTRICT FROM PARTICIPATING IN CONSOL-
IDATION OR MERGER EFFORTS OR ACTIVITIES.
S 22. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law; provided, however,
that any costs to any school district pursuant to sections two through
twenty of this act shall be paid by the state.
PART E
Section 1. Notwithstanding the provisions of article 47 of the insur-
ance law, or any other provision of law to the contrary, a county shall
be authorized to enter into a municipal cooperative agreement authorized
by article 5-G of the general municipal law, with one or more school
districts, towns, or villages, in order to provide health care benefits
A. 3897 24
or establish a health care plan for their respective employees. Such
county shall be authorized to charge an administrative fee to such
school districts, towns, or villages for participation in such agree-
ment.
S 2. This act shall take effect immediately.
S 3. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
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 4. This act shall take effect immediately provided, however, that
the applicable effective date of Parts A through E of this act shall be
as specifically set forth in the last section of such Parts.