S T A T E   O F   N E W   Y O R K
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                                  7878

                            I N  S E N A T E

                              May 19, 2016
                               ___________

Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
  when printed to be committed to the Committee on Corporations, Author-
  ities and Commissions

AN ACT to amend the public authorities law, in relation  to  authorizing
  the authorities budget office to suspend local authority board members
  and executive staff

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

  Section 1. The public authorities law  is  amended  by  adding  a  new
section 6-a to read as follows:
  S  6-A.  POWER  TO SUSPEND LOCAL AUTHORITY BOARD MEMBERS AND EXECUTIVE
STAFF. 1. THE  AUTHORITIES  BUDGET  OFFICE  SHALL  HAVE  THE  AUTHORITY,
SUBJECT  TO  SUBDIVISION  TWO  OF  THIS  SECTION, TO SUSPEND ONE OR MORE
MEMBERS OF A LOCAL AUTHORITY BOARD OF DIRECTORS, OR THE CHIEF  EXECUTIVE
OFFICER  OR EQUIVALENT POSITION OF A LOCAL AUTHORITY FOR A PERIOD NOT TO
EXCEED NINETY DAYS WHEN SUCH INDIVIDUAL OR INDIVIDUALS  KNOWINGLY  FAILS
OR  NEGLECTS  TO COMPLY WITH ANY PROVISION OF THIS CHAPTER. THE AUTHORI-
TIES BUDGET OFFICE IS AUTHORIZED TO TERMINATE SUCH A SUSPENSION  IF  THE
BOARD  MEMBER OR CHIEF EXECUTIVE OFFICER DEMONSTRATES THAT HE OR SHE HAS
REMEDIED THEIR NON-COMPLIANCE. FOR THE PURPOSES  OF  THIS  SECTION,  THE
"SUSPENSION"  OF  AN  INDIVIDUAL SHALL MEAN THE TEMPORARY REMOVAL OF THE
RIGHTS, RESPONSIBILITIES, POWERS AND  DUTIES  OF  A  PERSON  WHO  IS  AN
APPOINTED BOARD MEMBER OF A LOCAL AUTHORITY OR THE INDIVIDUAL WHO SERVES
AS  CHIEF EXECUTIVE OFFICER THROUGH APPOINTMENT OR CONTRACT.  SHOULD THE
AUTHORITIES BUDGET OFFICE SUSPEND THE  FULL  BOARD  OF  DIRECTORS  OR  A
MAJORITY  OF  CURRENT BOARD MEMBERS THE TERM "SUSPENSION" SHALL MEAN THE
BOARD OF DIRECTORS IS PROHIBITED FROM TAKING ACTIONS, VOTES, OR ADOPTING
RESOLUTIONS, THAT BIND THE BOARD TO FUTURE AGREEMENTS, CONTRACTS, FINAN-
CIAL COMMITMENTS, INDEBTEDNESS, OR OTHER  ACTIONS,  OTHER  THAN  ACTIONS
NECESSARY  TO  RESOLVE  THE  NONCOMPLIANCE  OR SATISFY EXISTING LEGAL OR
ADMINISTRATIVE OBLIGATIONS.
  2. (A) PURSUANT TO POLICIES AND PROCEDURES DEVELOPED BY  THE  AUTHORI-
TIES BUDGET OFFICE AND MADE AVAILABLE ON ITS WEB SITE, WHEN THE AUTHORI-
TIES  BUDGET OFFICE HAS REASON TO BELIEVE THAT ONE OR MORE BOARD MEMBERS

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

                                                           LBD11033-04-6

S. 7878                             2

OF A LOCAL AUTHORITY HAS KNOWINGLY FAILED OR NEGLECTED  TO  COMPLY  WITH
ANY  PROVISION  OF  THIS  CHAPTER,  THE  AUTHORITIES BUDGET OFFICE SHALL
PROVIDE AT LEAST THIRTY DAYS' NOTICE OF ITS INTENT TO  INITIATE  SUSPEN-
SION PROCEEDINGS TO THE CHAIRPERSON OF THE LOCAL AUTHORITY, TO THE INDI-
VIDUAL OR INDIVIDUALS RESPONSIBLE FOR APPOINTING SUCH BOARD MEMBERS, AND
TO  EACH  SUCH BOARD MEMBER. IF THE AUTHORITIES BUDGET OFFICE HAS REASON
TO BELIEVE THAT THE CHIEF EXECUTIVE OFFICER OF  A  LOCAL  AUTHORITY  HAS
KNOWINGLY FAILED OR NEGLECTED TO COMPLY WITH ANY PROVISION OF THIS CHAP-
TER,  THE  AUTHORITIES BUDGET OFFICE SHALL PROVIDE AT LEAST THIRTY DAYS'
NOTICE OF ITS INTENT TO INITIATE SUSPENSION PROCEEDINGS  TO  THE  CHAIR-
PERSON  OF  THE LOCAL AUTHORITY AND TO THE CHIEF EXECUTIVE OFFICER. SUCH
NOTICE SHALL INCLUDE, BUT SHALL NOT BE LIMITED TO (I)  THE  DATE  AND  A
BRIEF  DESCRIPTION  OF  THE  FACTS AND NATURE OF EACH NON-COMPLIANCE FOR
WHICH SUCH SUSPENSION IS PROPOSED; (II) THE  NUMBER  OF  DAYS  THAT  THE
AUTHORITIES BUDGET OFFICE PROPOSES TO SUSPEND SUCH BOARD MEMBER OR CHIEF
EXECUTIVE  OFFICER;  (III) THE OPTION TO SUBMIT A FORMAL RESPONSE TO THE
AUTHORITIES BUDGET OFFICE WHICH DEMONSTRATES WHY SUCH  BOARD  MEMBER  OR
CHIEF EXECUTIVE OFFICER SHOULD NOT BE SUSPENDED; AND (IV) IF APPLICABLE,
A  PERIOD OF TIME IN WHICH SUCH LOCAL AUTHORITY OR BOARD MEMBER OR CHIEF
EXECUTIVE OFFICER MAY REMEDY THE NON-COMPLIANCE.
  (B) IF, AFTER THE EXPIRATION OF THE DEADLINE SET FORTH IN  THE  NOTICE
OF  INTENT PURSUANT TO SUBPARAGRAPH (IV) OF PARAGRAPH (A) OF THIS SUBDI-
VISION, THE BOARD MEMBER OR MEMBERS OR CHIEF EXECUTIVE OFFICER, WHICHEV-
ER IS APPLICABLE, HAS NOT RESPONDED TO THE NOTICE OR  HAS  NOT  REMEDIED
THE NON-COMPLIANCE TO THE SATISFACTION OF THE AUTHORITIES BUDGET OFFICE,
THE  AUTHORITIES  BUDGET  OFFICE  SHALL ISSUE TO THE NON-COMPLIANT BOARD
MEMBER OR MEMBERS OR CHIEF EXECUTIVE  OFFICER  A  NOTICE  OF  SUSPENSION
WHICH  SHALL INCLUDE: (I) THE NUMBER OF DAYS OF SUSPENSION; AND (II) THE
DATE THAT SUCH SUSPENSION SHALL COMMENCE, WHICH DATE SHALL BE  AT  LEAST
ONE  HUNDRED  EIGHTY DAYS FROM THE DATE OF THE ISSUANCE OF THE NOTICE OF
SUSPENSION.
  3.(A) WHENEVER THE AUTHORITIES BUDGET OFFICE HAS SUSPENDED ONE OR MORE
BOARD MEMBERS OF A LOCAL AUTHORITY, THE INDIVIDUAL  OR  INDIVIDUALS  WHO
APPOINTED  THOSE  BOARD  MEMBERS  MAY ACT TO REINSTATE A SUSPENDED BOARD
MEMBER. IF THE APPOINTING AUTHORITY IS A LEGISLATIVE BODY OR A MEMBER OF
THE LEGISLATIVE BODY, ANY ACTION TO REINSTATE A SUSPENDED  BOARD  MEMBER
SHALL  OCCUR  IN A PUBLIC MEETING OF SUCH BODY AND FOLLOWING AN OPPORTU-
NITY FOR THE PUBLIC TO COMMENT. SUCH ACTION SHALL BE DEEMED  VALID  UPON
PASSAGE  OF  A  WRITTEN  RESOLUTION  OF  REINSTATEMENT BY A MAJORITY AND
RECORDED VOTE OF THE LEGISLATIVE BODY. SUCH  RESOLUTION  SHALL  DESCRIBE
THE FACTS AND CIRCUMSTANCES BY HOW THE LEGISLATIVE BODY HAS REACHED THIS
DETERMINATION.  IF THE APPOINTING AUTHORITY IS THE CHIEF EXECUTIVE OFFI-
CIAL OF THE MUNICIPALITY FOR  WHOSE  BENEFIT  THE  LOCAL  AUTHORITY  WAS
CREATED,  ANY  ACTION  TO  REINSTATE  A  SUSPENDED BOARD MEMBER SHALL BE
THROUGH AN OFFICIAL ACT OF THE CHIEF EXECUTIVE OFFICIAL. SUCH ACT  SHALL
BE RECORDED IN WRITING AND SHALL DESCRIBE THE FACTS AND CIRCUMSTANCES BY
WHICH THE CHIEF EXECUTIVE OFFICIAL REACHED THIS DETERMINATION.
  (B)  WHENEVER  THE  AUTHORITIES  BUDGET OFFICE HAS SUSPENDED THE CHIEF
EXECUTIVE OFFICER OF A LOCAL AUTHORITY, THE CHAIRPERSON  OF  SUCH  LOCAL
AUTHORITY MAY INITIATE ACTION TO REINSTATE THE SUSPENDED CHIEF EXECUTIVE
OFFICER.  ANY  ACTION  TO  REINSTATE A SUSPENDED CHIEF EXECUTIVE OFFICER
SHALL OCCUR IN A PUBLIC MEETING OF THE BOARD OF DIRECTORS AND  FOLLOWING
AN  OPPORTUNITY  FOR  THE PUBLIC TO COMMENT. SUCH ACTION SHALL BE DEEMED
VALID UPON PASSAGE OF A WRITTEN RESOLUTION OF REINSTATEMENT BY A MAJORI-
TY AND RECORDED VOTE OF THE CURRENT BOARD OF DIRECTORS. SUCH  RESOLUTION

S. 7878                             3

SHALL DESCRIBE THE FACTS AND CIRCUMSTANCES BY HOW THE BOARD OF DIRECTORS
REACHED THIS DETERMINATION.
  (C)  FOR  THE PURPOSES OF THIS SECTION, "REINSTATEMENT" SHALL MEAN THE
RESTORATION OF THE RIGHTS, RESPONSIBILITIES,  POWERS  AND  DUTIES  OF  A
BOARD MEMBER OR CHIEF EXECUTIVE OFFICER OF A LOCAL AUTHORITY.
  S  2.  This  act shall take effect on the thirtieth day after it shall
have become a law.