BILL NUMBER:S3601

TITLE OF BILL:  An act to amend the public authorities law, in
relation to prohibiting bonuses for employees, officers and members of
governing boards of state authorities who are members of the New York
state retirement system

PURPOSE OR GENERAL IDEA OF BILL:

The purpose of the bill is to remove the ability of public authorities
to pay bonuses, with certain exceptions set forth in the bill, to
employees, officers or members of governing boards who participate in
the New York State Retirement System as a result of their association
with such public authority.

SUMMARY OF SPECIFIC PROVISIONS:

Section One - adds a section 2854 of the Public Authorities Law that
prohibit the payment of bonuses of any nature to any employee, officer
or member of a governing board of a state agency who is a member of
the New York State Retirement System as a result or by virtue of
employment or membership in the state authority. For the purposes of
this section retroactive increases in compensation pursuant to a
collective bargaining agreement, or incentives based upon a written
agreement adopted in advance by the governing board of the authority
is not considered a bonus.
              

Section Two - Effective date.

JUSTIFICATION:

Recent articles have reported New York State Public Authorities paying
bonuses on top of lucrative salaries and other benefits, including
participation in the state retirement system.  While bonuses may be
appropriate in the private sector, taking into account the state
retirement benefits that are not available to employees in the private
sector, in times of fiscal crisis, state authorities should not be
authorizing bonuses.

PRIOR LEGISLATIVE HISTORY:

2013-14 - S.2500 - CORPORATIONS
2011-12 - S.4484 -- CORPORATIONS

FISCAL IMPLICATIONS:

This bill would lead to cost savings for the state and state agencies.

EFFECTIVE DATE:

This act shall take effect immediately.