S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1524
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 12, 2017
                                ___________
 
 Introduced  by  M.  of  A.  ZEBROWSKI  --  read once and referred to the
   Committee on Local Governments
 
 AN ACT to amend the general municipal law, in relation to  enacting  the
   local government fiscal indicator system act
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. This act shall be known as  the  "local  government  fiscal
 indicator system act".
   §  2. The general municipal law is amended by adding a new article 4-A
 to read as follows:
                                ARTICLE 4-A
                 LOCAL GOVERNMENT FISCAL INDICATOR SYSTEM
 SECTION 60.   DEFINITIONS.
         61.   REVIEW OF FINANCIAL INFORMATION; REQUEST FOR RESPONSE.
         62.   LEVEL ONE FISCAL STRESS.
         63.   LEVEL TWO FISCAL STRESS.
         64.   LEVEL THREE FISCAL STRESS.
         65.   FISCAL CRISIS.
         66.   NEW YORK STATE BOARD OF LOCAL GOVERNMENT DEFICIT FINANCING
                 AUTHORIZATION.
         67.   INCONSISTENCY WITH OTHER LAWS.
         68.   NOTICE OF BENCHMARKS AND ADDITIONAL CRITERIA.
         69.   REPORTS.
         69-A. NO DUPLICATION.
   § 60. DEFINITIONS. AS USED IN THIS ARTICLE:
   1.  "MUNICIPALITY"  SHALL  MEAN  ANY  COUNTY,  TOWN,  VILLAGE,  SCHOOL
 DISTRICT OR CITY OTHER THAN A CITY HAVING A POPULATION OF ONE MILLION OR
 MORE.
   2. "COMPTROLLER" SHALL MEAN THE NEW YORK STATE COMPTROLLER.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04341-01-7

              

 A. 1524                             2
 
   3. "ANNUAL FINANCIAL REPORT" SHALL MEAN THE REPORT OF A MUNICIPALITY'S
 FINANCIAL  CONDITION  REQUIRED  TO  BE  MADE ANNUALLY TO THE COMPTROLLER
 PURSUANT TO SECTION THIRTY OF THIS CHAPTER.
   4.  "TENTATIVE BUDGET" SHALL MEAN THE TENTATIVE BUDGET PREPARED PURSU-
 ANT TO SECTION THREE HUNDRED FIFTY-FOUR OF THE COUNTY LAW,  SECTION  ONE
 HUNDRED  SIX  OF  THE  TOWN LAW OR SECTION 5-504 OF THE VILLAGE LAW, THE
 ANNUAL ESTIMATE PROPOSED PURSUANT TO SECTION SEVENTY-FIVE OF THE  SECOND
 CLASS  CITIES  LAW,  OR  SIMILAR  DOCUMENT PREPARED PURSUANT TO GENERAL,
 SPECIAL OR LOCAL LAW.
   5. "BENCHMARK" SHALL MEAN A STANDARD OR REFERENCE POINT  BASED  ON  AN
 ANALYSIS  OF  OTHER MUNICIPALITIES OF SIMILAR SIZE AND CHARACTER, STATE-
 WIDE OR NATIONAL TRENDS OR SIMILAR COMMONLY ACCEPTED FACTORS IN  MUNICI-
 PAL FINANCE.
   6. "MAJOR OPERATING FUND" SHALL MEAN A MUNICIPALITY'S GENERAL FUND AND
 ANY  OTHER  FUND  THAT  REPRESENTS  MORE  THAN TWENTY PER CENTUM OF THAT
 MUNICIPALITY'S TOTAL FUNDS.
   7. "FINANCIAL CONTROL BOARD" SHALL MEAN A PUBLIC AUTHORITY CREATED  BY
 THE  STATE  THAT  HAS  LEGAL CONTROL OVER A MUNICIPALITY FOR A PERIOD OF
 TIME IN ORDER TO IMPROVE THE FINANCIAL CONDITION.  DURING  THAT  CONTROL
 PERIOD,  THE  BOARD  SHALL  HAVE  POWERS  INCLUDING  BUT  NOT LIMITED TO
 APPROVAL OF CONTRACTS, ISSUANCE OF DEBT, APPROVAL OF FINANCIAL PLAN  AND
 ABILITY  TO  CONDUCT  MEETINGS.  THE BOARD SHALL REMAIN IN CONTROL UNTIL
 CERTAIN TRIGGERS ARE MET INDICATING THAT THE FINANCIAL CONDITION OF  THE
 MUNICIPALITY HAS IMPROVED.
   § 61. REVIEW OF FINANCIAL INFORMATION; REQUEST FOR RESPONSE. IN FURTH-
 ERANCE  OF THE PURPOSES OF THIS ARTICLE, THE COMPTROLLER SHALL ESTABLISH
 A PROGRAM FOR THE REVIEW OF ANNUAL  FINANCIAL  REPORT  DATA  OF  MUNICI-
 PALITIES,  AND  SUCH OTHER RELATED DATA AND INFORMATION AS MAY BE DEEMED
 RELEVANT. THE COMPTROLLER MAY REQUEST THE SUBMISSION BY ANY MUNICIPALITY
 OF ADDITIONAL INFORMATION OR DATA  FOR  THIS  PURPOSE.  THE  COMPTROLLER
 SHALL  CONSULT  WITH  MUNICIPAL  OFFICIALS,  AS  APPROPRIATE, DURING THE
 REVIEW PROCESS. BASED UPON THE COMPTROLLER'S REVIEW, THE COMPTROLLER, IN
 SUCH MANNER AS HE OR SHE DEEMS APPROPRIATE, MAY MAKE RECOMMENDATIONS  TO
 THE CHIEF EXECUTIVE OFFICER AND CHIEF FISCAL OFFICER OF THE MUNICIPALITY
 AS  TO ACTIONS WHICH MAY BE TAKEN BY THE MUNICIPALITY IN CONNECTION WITH
 THE FISCAL AFFAIRS OF THE MUNICIPALITY. THE CHIEF EXECUTIVE  OFFICER  OR
 CHIEF FISCAL OFFICER SHALL RESPOND TO THE COMPTROLLER'S RECOMMENDATIONS,
 IN  SUCH  MANNER  AS  THE  COMPTROLLER  DEEMS APPROPRIATE, BY INDICATING
 ACTIONS TAKEN OR PROPOSED TO BE TAKEN OR, IF THE CHIEF EXECUTIVE OFFICER
 OR THE CHIEF FISCAL OFFICER INDICATES THAT NO ACTION IS WARRANTED OR  IS
 TO BE TAKEN OR PROPOSED, BY PROVIDING AN EXPLANATION.
   §  62. LEVEL ONE FISCAL STRESS. 1. BASED UPON THE COMPTROLLER'S REVIEW
 OF ANNUAL FINANCIAL REPORT DATA, AND OTHER APPROPRIATE DATA AND INFORMA-
 TION PURSUANT TO SECTION SIXTY-ONE OF THIS ARTICLE, THE COMPTROLLER  MAY
 IDENTIFY THOSE MUNICIPALITIES THAT:
   A.  HAVE  FAILED  TO  TIMELY  PROVIDE  ADDITIONAL  INFORMATION OR DATA
 REQUESTED BY THE COMPTROLLER OR HAVE FAILED TO SUFFICIENTLY  RESPOND  TO
 ANY  RECOMMENDATIONS  MADE BY THE COMPTROLLER PURSUANT TO SECTION SIXTY-
 ONE OF THIS ARTICLE; OR
   B. THE COMPTROLLER DETERMINES THAT THE MUNICIPALITY MEETS ONE  OF  THE
 FOLLOWING CRITERIA:
   (I)  THE  MUNICIPALITY,  IN  THE  LAST  COMPLETED  FISCAL YEAR, HAD AN
 UNPLANNED OPERATING DEFICIT IN A MAJOR OPERATING FUND IN EXCESS  OF  ONE
 AND  ONE  HALF PER CENTUM OF SUCH MAJOR OPERATING FUND'S EXPENDITURES IN
 THE LAST COMPLETED FISCAL YEAR;

 A. 1524                             3
 
   (II) THE MUNICIPALITY, IN ITS LAST COMPLETED FISCAL YEAR, HAD AN UNAP-
 PROPRIATED OR UNRESERVED FUND  BALANCE  DEFICIT  IN  THE  MUNICIPALITY'S
 GENERAL FUND; OR
   (III) THE MUNICIPALITY, IN ITS LAST COMPLETED FISCAL YEAR, HAD A RATIO
 OF  NON-RECURRING  REVENUES USED TO FUND RECURRING EXPENDITURES TO TOTAL
 EXPENDITURES IN EXCESS OF A BENCHMARK DETERMINED BY THE COMPTROLLER  AND
 HAD  A  RATIO  OF DEBT SERVICE TO TOTAL REVENUE IN EXCESS OF A BENCHMARK
 DETERMINED BY THE COMPTROLLER.
   2. FOR EACH MUNICIPALITY IDENTIFIED PURSUANT  TO  SUBDIVISION  ONE  OF
 THIS  SECTION, THE COMPTROLLER SHALL NOTIFY THE CHIEF EXECUTIVE OFFICER,
 CHIEF FISCAL OFFICER AND GOVERNING BODY  OF  THE  AFFECTED  MUNICIPALITY
 THAT THE MUNICIPALITY HAS FALLEN WITHIN THE CRITERIA SET FORTH IN SUBDI-
 VISION  ONE OF THIS SECTION AND OF THEIR DESIGNATION OF LEVEL ONE FISCAL
 STRESS. THE NOTIFICATION SHALL INCLUDE DETAILS OF THE DETERMINATION  AND
 THE CRITERIA USED. SUCH NOTIFICATION SHALL BE MADE IN SUCH MANNER AS THE
 COMPTROLLER  DEEMS APPROPRIATE. WITHIN THIRTY DAYS AFTER RECEIPT OF SUCH
 NOTIFICATION, THE CHIEF EXECUTIVE  OFFICER  OF  THE  MUNICIPALITY  SHALL
 RESPOND  TO  THE  COMPTROLLER'S NOTIFICATION IN SUCH FORM AS REQUIRED BY
 THE COMPTROLLER, WITH A SELF-EVALUATION OF THE  FISCAL  AFFAIRS  OF  THE
 MUNICIPALITY,  ADDRESSING  THE  MATTERS RAISED IN THE NOTIFICATION. SUCH
 RESPONSE SHALL INCLUDE A CORRECTIVE ACTION PLAN  THAT  DETAILS  SPECIFIC
 COURSES  OF  ACTION THAT HAVE BEEN TAKEN OR WILL BE TAKEN TO ADDRESS THE
 FISCAL STRESS IDENTIFIED BY THE COMPTROLLER. AFTER RECEIPT AND REVIEW OF
 THE RESPONSE, THE COMPTROLLER MAY REQUIRE ANY LOCAL OFFICIAL OR EMPLOYEE
 OF THE MUNICIPALITY, OR HIS OR HER DESIGNEE, TO ATTEND A RELEVANT MUNIC-
 IPAL TRAINING COURSE CONDUCTED OR APPROVED BY THE COMPTROLLER. THE CHIEF
 EXECUTIVE OFFICER OR  CHIEF  FISCAL  OFFICER  OF  THE  MUNICIPALITY  MAY
 REQUEST  ASSISTANCE FROM THE COMPTROLLER IN REVIEWING THE MATTERS RAISED
 IN THE COMPTROLLER'S NOTIFICATION AND SHALL RECEIVE SUCH  ASSISTANCE  AS
 MAY  BE REASONABLY NECESSARY FROM ANY OFFICER OR EMPLOYEE OF THE MUNICI-
 PALITY.
   § 63. LEVEL TWO FISCAL STRESS. 1. BASED UPON THE COMPTROLLER'S  REVIEW
 OF  ANNUAL FINANCIAL REPORT DATA AND OTHER APPROPRIATE DATA AND INFORMA-
 TION PURSUANT TO SECTION SIXTY-ONE OF THIS ARTICLE, THE COMPTROLLER  MAY
 IDENTIFY THOSE MUNICIPALITIES THAT:
   A.  HAVE  FAILED  TO  TIMELY  PROVIDE  ADDITIONAL  INFORMATION OR DATA
 REQUESTED BY THE COMPTROLLER OR HAVE FAILED TO SUFFICIENTLY  RESPOND  TO
 ANY  RECOMMENDATIONS  MADE BY THE COMPTROLLER PURSUANT TO SECTION SIXTY-
 ONE OF THIS ARTICLE; OR
   B. THE COMPTROLLER DETERMINES THAT THE MUNICIPALITY MEETS THE  FOLLOW-
 ING  CRITERIA  THAT  THE MUNICIPALITY, IN EACH OF ITS LAST TWO COMPLETED
 FISCAL YEARS, HAD AT LEAST ONE OF THE FOLLOWING:
   (I) AN UNPLANNED OPERATING DEFICIT IN A MAJOR OPERATING FUND IN EXCESS
 OF ONE AND ONE HALF PER CENTUM OF SUCH MAJOR OPERATING  FUND'S  EXPENDI-
 TURES IN THE LAST COMPLETED FISCAL YEAR;
   (II)  AN  UNAPPROPRIATED  OR  UNRESERVED  FUND  BALANCE DEFICIT IN THE
 MUNICIPALITY'S GENERAL FUND; OR
   (III) A RATIO OF NON-RECURRING REVENUES USED TO FUND RECURRING EXPEND-
 ITURES TO TOTAL EXPENDITURES IN EXCESS OF A BENCHMARK DETERMINED BY  THE
 COMPTROLLER  AND  HAD A RATIO OF DEBT SERVICE TO TOTAL REVENUE IN EXCESS
 OF A BENCHMARK DETERMINED BY THE COMPTROLLER.
   2. FOR EACH MUNICIPALITY IDENTIFIED PURSUANT  TO  SUBDIVISION  ONE  OF
 THIS  SECTION, THE COMPTROLLER SHALL NOTIFY THE CHIEF EXECUTIVE OFFICER,
 CHIEF FISCAL OFFICER AND GOVERNING BODY  OF  THE  AFFECTED  MUNICIPALITY
 THAT THE MUNICIPALITY HAS FALLEN WITHIN THE CRITERIA SET FORTH IN SUBDI-
 VISION  ONE OF THIS SECTION AND OF THEIR DESIGNATION OF LEVEL TWO FISCAL

 A. 1524                             4
 
 STRESS. THE NOTIFICATION SHALL INCLUDE DETAILS OF THE DETERMINATION  AND
 THE CRITERIA USED. SUCH NOTIFICATION SHALL BE MADE IN SUCH MANNER AS THE
 COMPTROLLER DEEMS APPROPRIATE. THE CHIEF EXECUTIVE OFFICER AND GOVERNING
 BODY OF THE MUNICIPALITY, UPON NOTIFICATION BY THE COMPTROLLER THAT THEY
 HAVE  BEEN  DESIGNATED  LEVEL  TWO  FISCAL  STRESS, SHALL BE REQUIRED TO
 FULFILL THE FOLLOWING CONDITIONS WITHIN THE NEXT SUCCEEDING FISCAL YEAR:
   A. DEVELOP A CORRECTIVE ACTION PLAN THAT DETAILS SPECIFIC  COURSES  OF
 ACTION  THAT  HAVE  BEEN  TAKEN  OR  WILL BE TAKEN TO ADDRESS THE FISCAL
 STRESS IDENTIFIED BY THE COMPTROLLER; AND
   B. ADOPT A FOUR-YEAR FINANCIAL PLAN IN SUCH FORM AS MAY BE  PRESCRIBED
 BY THE COMPTROLLER.
   3.  THE FINANCIAL PLAN SHALL BE ADOPTED NO LATER THAN THE LAST DATE ON
 WHICH THE MUNICIPALITY'S BUDGET IS REQUIRED TO BE ADOPTED,  AND  MAY  BE
 MODIFIED  FROM  TIME TO TIME.  THE FINANCIAL PLAN SHALL PROVIDE THAT THE
 OPERATING FUNDS OF THE MUNICIPALITY WILL BE IN BALANCE.
   4. THE CHIEF FISCAL OFFICER OF THE MUNICIPALITY SHALL, UNTIL OTHERWISE
 NOTIFIED BY THE COMPTROLLER, PREPARE AND SUBMIT TO THE GOVERNING BODY OF
 THE MUNICIPALITY MONTHLY FINANCIAL REPORTS, WITHIN FIFTEEN DAYS FROM THE
 END OF EACH MONTH, AND PREPARE AND SUBMIT TO THE  COMPTROLLER  QUARTERLY
 FINANCIAL  REPORTS,  WITHIN  FIFTEEN  DAYS FROM THE END OF EACH QUARTER,
 BOTH IN SUCH FORM AS MAY BE PRESCRIBED BY THE COMPTROLLER. IN THE  EVENT
 THAT  THE COMPTROLLER PROVIDES ANY RECOMMENDATIONS REGARDING ANY REPORTS
 REQUIRED BY THIS SUBDIVISION, THE CHIEF EXECUTIVE OFFICER SHALL  PREPARE
 A  RESPONSE  TO  THE  COMPTROLLER'S RECOMMENDATIONS. SUCH RESPONSE SHALL
 INCLUDE, WITH RESPECT TO EACH RECOMMENDATION,  AN  ACCEPTANCE  STATEMENT
 FOR  ACTIONS TAKEN OR PROPOSED TO BE TAKEN AND IF NO ACTION IS WARRANTED
 OR IS TO BE TAKEN OR PROPOSED, A LOCAL LAW  SHALL  BE  PROPOSED  BY  THE
 CHIEF  EXECUTIVE  OFFICER  AND  MUST  BE  APPROVED  BY A MAJORITY OF THE
 GOVERNING BODY.
   § 64. LEVEL THREE FISCAL  STRESS.  1.  BASED  UPON  THE  COMPTROLLER'S
 REVIEW  OF  ANNUAL  FINANCIAL REPORT DATA AND OTHER APPROPRIATE DATA AND
 INFORMATION PURSUANT TO SECTION SIXTY-ONE OF  THIS  ARTICLE,  THE  COMP-
 TROLLER  MAY  IDENTIFY THOSE LEVEL TWO FISCAL STRESS MUNICIPALITIES THAT
 THE COMPTROLLER BELIEVES FIT WITHIN ANY OF  THE  FOLLOWING  CRITERIA:  A
 LEVEL  TWO FISCAL STRESS MUNICIPALITY, IN EACH OF ITS LAST TWO COMPLETED
 FISCAL YEARS, HAD AT LEAST ONE OF THE FOLLOWING:
   A. AN UNPLANNED OPERATING DEFICIT IN A MAJOR OPERATING FUND IN  EXCESS
 OF  ONE  AND  ONE HALF PER CENTUM OF THE MAJOR OPERATING FUND'S EXPENDI-
 TURES IN THE LAST COMPLETED FISCAL YEAR;
   B. AN UNAPPROPRIATED OR UNRESERVED FUND BALANCE DEFICIT IN THE MUNICI-
 PALITY'S GENERAL FUND; OR
   C. A RATIO OF NON-RECURRING REVENUES USED TO FUND  RECURRING  EXPENDI-
 TURES  TO  TOTAL EXPENDITURES IN EXCESS OF A BENCHMARK DETERMINED BY THE
 COMPTROLLER AND HAD A RATIO OF DEBT SERVICE TO TOTAL REVENUE  IN  EXCESS
 OF A BENCHMARK DETERMINED BY THE COMPTROLLER.
   2.  A. FOR EACH MUNICIPALITY IDENTIFIED PURSUANT TO SUBDIVISION ONE OF
 THIS SECTION, THE COMPTROLLER SHALL NOTIFY THE CHIEF EXECUTIVE  OFFICER,
 CHIEF  FISCAL  OFFICER  AND  GOVERNING BODY OF THE AFFECTED MUNICIPALITY
 THAT THE MUNICIPALITY HAS FALLEN WITHIN THE CRITERIA SET FORTH IN SUBDI-
 VISION ONE OF THIS SECTION AND  OF  THEIR  DESIGNATION  OF  LEVEL  THREE
 FISCAL  STRESS.  THE  NOTIFICATION SHALL INCLUDE DETAILS OF THE DETERMI-
 NATION AND THE CRITERIA USED. SUCH NOTIFICATION SHALL BE  MADE  IN  SUCH
 MANNER AS THE COMPTROLLER DEEMS APPROPRIATE. THE CHIEF EXECUTIVE OFFICER
 AND  GOVERNING  BODY OF THE MUNICIPALITY, UPON NOTIFICATION BY THE COMP-
 TROLLER THAT THEY HAVE BEEN DESIGNATED LEVEL THREE FISCAL STRESS,  SHALL

 A. 1524                             5
 
 BE REQUIRED TO FULFILL THE FOLLOWING CONDITIONS WITHIN THE NEXT SUCCEED-
 ING FISCAL YEAR:
   (I)  DEVELOP A CORRECTIVE ACTION PLAN THAT DETAILS SPECIFIC COURSES OF
 ACTION THAT HAVE BEEN TAKEN OR WILL  BE  TAKEN  TO  ADDRESS  THE  FISCAL
 STRESS IDENTIFIED BY THE COMPTROLLER; AND
   (II)  ADOPT  A  FOUR-YEAR  FINANCIAL  PLAN  IN  SUCH  FORM  AS  MAY BE
 PRESCRIBED BY THE COMPTROLLER.
   (B) (I) THE CHIEF EXECUTIVE OFFICER OR INDIVIDUAL OR BODY  RESPONSIBLE
 FOR THE PREPARATION OF THE TENTATIVE BUDGET, UNTIL OTHERWISE NOTIFIED BY
 THE COMPTROLLER, SHALL ANNUALLY SUBMIT THE TENTATIVE BUDGET FOR THE NEXT
 SUCCEEDING  FISCAL  YEAR  AND  THE PROPOSED FOUR-YEAR FINANCIAL PLAN FOR
 REVIEW BY THE COMPTROLLER. SUCH TENTATIVE BUDGET SHALL BE  SUBMITTED  TO
 THE  COMPTROLLER WITHIN FIVE DAYS AFTER ITS PREPARATION, BUT IN NO EVENT
 LATER THAN THIRTY DAYS PRIOR TO THE COMMENCEMENT OF THE NEXT  SUCCEEDING
 FISCAL YEAR. THE PROPOSED FOUR-YEAR FINANCIAL PLAN SHALL BE SUBMITTED AT
 THE  SAME  TIME  AS  THE TENTATIVE BUDGET. THE COMPTROLLER SHALL IN EACH
 SUCH YEAR EXAMINE SUCH TENTATIVE BUDGET  AND  FINANCIAL  PLAN  AND  MAKE
 RECOMMENDATIONS  THEREON  TO  THE  MUNICIPALITY,  WITHIN FIFTEEN DAYS OF
 RECEIPT THEREOF. SUCH RECOMMENDATIONS SHALL BE MADE AFTER REVIEW OF  THE
 ESTIMATES  OF  REVENUES  AND  EXPENDITURES OF SUCH MUNICIPALITY AND SUCH
 OTHER INFORMATION AS THE COMPTROLLER DEEMS  APPROPRIATE,  AND  SHALL  BE
 MADE  PRIOR  TO  THE  ADOPTION OF THE FINAL BUDGET. AT LEAST FORTY-EIGHT
 HOURS PRIOR TO THE ADOPTION OF THE FINAL  BUDGET,  THE  CHIEF  EXECUTIVE
 OFFICER  OR  INDIVIDUAL  OR  BODY RESPONSIBLE FOR THE PREPARATION OF THE
 TENTATIVE BUDGET OF THE MUNICIPALITY SHALL PREPARE  A  RESPONSE  TO  THE
 COMPTROLLER'S RECOMMENDATIONS. SUCH RESPONSE SHALL INCLUDE, WITH RESPECT
 TO  EACH  RECOMMENDATION,  AN  ACCEPTANCE STATEMENT FOR ACTIONS TAKEN OR
 PROPOSED TO BE TAKEN AND IF NO ACTION IS WARRANTED OR IS TO BE TAKEN  OR
 PROPOSED,  A  LOCAL LAW SHALL BE PROPOSED BY THE CHIEF EXECUTIVE OFFICER
 AND MUST BE APPROVED BY A MAJORITY OF  THE  GOVERNING  BODY.  THE  COMP-
 TROLLER'S  RECOMMENDATIONS  AND  THE  ACCEPTANCE  STATEMENT AND REJECTED
 RECOMMENDATIONS THERETO SHALL BE  DISTRIBUTED  TO  EACH  MEMBER  OF  THE
 GOVERNING BODY, FILED WITH THE CLERK OF THE MUNICIPALITY AND MADE A PART
 OF  THE BUDGET DOCUMENT.  WHEN SO FILED, SUCH RESPONSE SHALL BE A PUBLIC
 RECORD OPEN TO INSPECTION BY ANY INTERESTED PERSON. THE  RESPONSE  SHALL
 ALSO BE DELIVERED TO THE STATE DIVISION OF THE BUDGET, THE OFFICE OF THE
 STATE  COMPTROLLER,  THE  CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE
 AND THE CHAIR OF THE SENATE FINANCE COMMITTEE.
   (II) NOTWITHSTANDING THE PROVISIONS OF SECTION THIRTY OF THIS CHAPTER,
 THE CHIEF FISCAL OFFICER OF THE MUNICIPALITY, UNTIL  OTHERWISE  NOTIFIED
 BY  THE  COMPTROLLER,  SHALL SUBMIT THE ANNUAL FINANCIAL REPORT NO LATER
 THAN THIRTY DAYS FROM THE CLOSE OF THE FISCAL YEAR FOR WHICH THE  REPORT
 IS PREPARED.
   §  65. FISCAL CRISIS. 1. BASED UPON THE COMPTROLLER'S REVIEW OF ANNUAL
 FINANCIAL REPORT DATA AND OTHER APPROPRIATE DATA AND INFORMATION  PURSU-
 ANT TO SECTION SIXTY-ONE OF THIS ARTICLE, THE COMPTROLLER SHALL IDENTIFY
 THOSE MUNICIPALITIES THAT FIT WITHIN ANY OF THE FOLLOWING CRITERIA:
   A.  THE MUNICIPALITY HAD UNPLANNED GENERAL FUND OPERATING DEFICIT THAT
 EXCEEDED TWENTY PERCENT OF GENERAL FUND EXPENDITURES AS OF THE CLOSE  OF
 THE  LAST  PRECEDING FISCAL YEAR AND HAD AN UNAPPROPRIATED OR UNRESERVED
 FUND BALANCE DEFICIT THAT EXCEEDS TWENTY-FIVE PERCENT  OF  THE  EXPENDI-
 TURES  IN  THE GENERAL FUND AS OF THE CLOSE OF THE LAST PRECEDING FISCAL
 YEAR;
   B. TWICE, WITHIN A FIVE-YEAR PERIOD, THE MUNICIPALITY EITHER HAS  BEEN
 AUTHORIZED PURSUANT TO LAW TO ISSUE, AND HAS ADOPTED RESOLUTIONS AUTHOR-
 IZING  THE  ISSUANCE  OF, BONDS TO FINANCE A DEFICIT, AND/OR DIRECTLY OR

 A. 1524                             6
 
 INDIRECTLY UTILIZED THE PROCEEDS OF DEBT ISSUED BY  ANY  PUBLIC  BENEFIT
 CORPORATION OR NOT-FOR-PROFIT CORPORATION TO FUND A DEFICIT OF THE MUNI-
 CIPALITY;
   C. THE MUNICIPALITY, DUE TO CONDITIONS OF FISCAL STRESS, HAS DEFAULTED
 IN  THE  PAYMENT OF PRINCIPAL OR INTEREST ON ITS BONDS OR NOTES, OR SUCH
 DEFAULT IS IMMINENT;
   D. THE MUNICIPALITY, DUE TO CONDITIONS OF FISCAL  STRESS  OR  NEGATIVE
 CREDIT  FACTORS, IS UNABLE TO SELL ITS OBLIGATIONS IN THE GENERAL PUBLIC
 MARKET.
   2. A. FOR EACH MUNICIPALITY IDENTIFIED PURSUANT TO SUBDIVISION ONE  OF
 THIS  SECTION, THE COMPTROLLER SHALL NOTIFY THE CHIEF EXECUTIVE OFFICER,
 CHIEF FISCAL OFFICER AND GOVERNING BODY  OF  THE  AFFECTED  MUNICIPALITY
 THAT THE MUNICIPALITY HAS FALLEN WITHIN THE CRITERIA SET FORTH IN SUBDI-
 VISION  ONE  OF  THIS SECTION AND OF THEIR DESIGNATION OF FISCAL CRISIS.
 THE NOTIFICATION SHALL INCLUDE DETAILS  OF  THE  DETERMINATION  AND  THE
 CRITERIA  USED.  SUCH  NOTIFICATION  SHALL BE MADE IN SUCH MANNER AS THE
 COMPTROLLER DEEMS APPROPRIATE. THE CHIEF EXECUTIVE OFFICER AND GOVERNING
 BODY OF THE MUNICIPALITY, UPON NOTIFICATION BY THE COMPTROLLER THAT THEY
 HAVE BEEN DESIGNATED FISCAL CRISIS, SHALL BE  REQUIRED  TO  FULFILL  THE
 FOLLOWING CONDITIONS WITHIN THE NEXT SUCCEEDING FISCAL YEAR:
   B.  EACH  MUNICIPALITY IDENTIFIED AS FISCAL CRISIS SHALL BE SUBJECT TO
 THE PROVISIONS OF  THIS  SECTION,  AND  SUCH  REQUIREMENTS  OF  SECTIONS
 SIXTY-TWO, SIXTY-THREE AND SIXTY-FOUR OF THIS ARTICLE AS THE COMPTROLLER
 SHALL DEEM APPROPRIATE.
   3.  THE  COMPTROLLER  SHALL,  WITHIN FORTY-FIVE DAYS AFTER NOTIFYING A
 MUNICIPALITY OF THEIR DESIGNATION OF FISCAL  CRISIS,  INTRODUCE  PROGRAM
 LEGISLATION  AUTHORIZING  THE  CREATION  OF A FINANCIAL CONTROL BOARD AS
 DEFINED IN THIS ARTICLE FOR THE AFFECTED MUNICIPALITY.  THE  COMPTROLLER
 SHALL  PRESENT  A  REPORT DETAILING THE DESIGNATION OF FISCAL CRISIS FOR
 THE AFFECTED MUNICIPALITY AND THEIR RECOMMENDATIONS REGARDING  THE  NEED
 FOR  A  FINANCIAL CONTROL BOARD TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY
 AND TEMPORARY PRESIDENT OF THE SENATE NO LATER THAN  THIRTY  DAYS  AFTER
 THE  INTRODUCTION  OF  THE  PROGRAM LEGISLATION.   THE ASSEMBLY WAYS AND
 MEANS COMMITTEE AND SENATE FINANCE COMMITTEE SHALL HOLD A JOINT LEGISLA-
 TIVE HEARING ON THE AFFECTED MUNICIPALITY AND THE PROPOSED IMPOSITION OF
 A FINANCIAL CONTROL BOARD NO LATER THAN FOURTEEN  DAYS  AFTER  RECEIVING
 SUCH  REPORT  FROM THE COMPTROLLER.   THE ASSEMBLY AND SENATE SHALL HAVE
 EIGHT MONTHS AFTER SUCH HEARING IS HELD TO EITHER APPROVE OR  DISAPPROVE
 THE COMPTROLLER'S PROGRAM LEGISLATION CREATING A FINANCIAL CONTROL BOARD
 FOR THE AFFECTED MUNICIPALITY.
   4.  THE  MUNICIPALITY SHALL NOT ISSUE ANY FURTHER BONDS OR BOND ANTIC-
 IPATION NOTES UNLESS AND UNTIL THE AFFORDABILITY OF SUCH ADDITIONAL DEBT
 TO THE TAX BASE SUPPORTING THE INDEBTEDNESS HAS  BEEN  REVIEWED  BY  THE
 COMPTROLLER  AND  THE  TERMS OF THE DEBT IS APPROVED BY THE COMPTROLLER.
 THE MUNICIPALITY SHALL RESPOND IN WRITING TO  RECOMMENDATIONS,  IF  ANY,
 WHICH  THE COMPTROLLER MAY MAKE THEREON. THE COMPTROLLER MAY REQUIRE THE
 CHIEF FISCAL OFFICER OF THE MUNICIPALITY TO PREPARE  AND  SUBMIT  (A)  A
 PLAN  WHICH DETAILS THE PROJECTED FISCAL IMPACT OF THE PROPOSED ISSUANCE
 OF BONDS OR BOND ANTICIPATION NOTES INCLUDING  FINANCING  COSTS,  FUTURE
 DIRECT AND INDIRECT OPERATING COSTS OF, AND ANY RESULTING REVENUES FROM,
 THE OBJECT OR PURPOSE TO BE FINANCED; AND (B) AN ANALYSIS OF THE AFFORD-
 ABILITY  TO  THE  TAX  BASE  SUPPORTING THE DEBT SERVICE OR THE BONDS OR
 NOTES. THE COMPTROLLER MAY REQUIRE SUCH OTHER INFORMATION AS  THE  COMP-
 TROLLER  DEEMS  NECESSARY  TO  COMPLETE THE REVIEW OF AFFORDABILITY. THE
 COMPTROLLER SHALL MAKE ANY RECOMMENDATIONS  AND  APPROVE  OR  DISAPPROVE

 A. 1524                             7
 
 WITHIN  THIRTY  DAYS OF RECEIPT OF ALL INFORMATION NECESSARY TO COMPLETE
 THE REVIEW OF AFFORDABILITY.
   5.  NOTWITHSTANDING  ANY OTHER PROVISION OF LAW, NO MUNICIPALITY WHICH
 IS SUBJECT TO THIS SECTION SHALL FILE ANY PETITION AUTHORIZED  BY  TITLE
 SIX-A OF ARTICLE TWO OF THE LOCAL FINANCE LAW.
   §  66.  NEW  YORK  STATE  BOARD  OF LOCAL GOVERNMENT DEFICIT FINANCING
 AUTHORIZATION. 1. A.  THERE IS HEREBY CREATED THE NEW YORK  STATE  BOARD
 OF LOCAL GOVERNMENT DEFICIT FINANCING AUTHORIZATION WHICH SHALL HAVE AND
 EXERCISE  THE  POWERS  AND  DUTIES  SET FORTH IN SUBDIVISION TWO OF THIS
 SECTION.
   B. SUCH BOARD SHALL CONSIST OF FIVE MEMBERS AS  FOLLOWS:  ONE  OF  THE
 MEMBERS  SHALL BE APPOINTED BY THE GOVERNOR, WHO SHALL BE THE CHAIR, ONE
 OF THE MEMBERS SHALL BE APPOINTED BY  THE  TEMPORARY  PRESIDENT  OF  THE
 SENATE,  ONE  OF  THE  MEMBERS  SHALL BE APPOINTED BY THE SPEAKER OF THE
 ASSEMBLY, ONE OF THE MEMBERS SHALL BE APPOINTED BY THE  MINORITY  LEADER
 OF  THE SENATE AND ONE OF THE MEMBERS SHALL BE APPOINTED BY THE MINORITY
 LEADER OF THE ASSEMBLY. EACH MEMBER OF THE BOARD SHALL  BE  ENTITLED  TO
 DESIGNATE A REPRESENTATIVE TO ATTEND MEETINGS OF THE BOARD IN HIS OR HER
 PLACE,  AND  TO VOTE OR OTHERWISE ACT ON HIS OR HER BEHALF IN HIS OR HER
 ABSENCE. NOTICE OF SUCH DESIGNATION SHALL BE FURNISHED IN WRITING TO THE
 BOARD BY THE DESIGNATING MEMBER. A REPRESENTATIVE  SHALL  SERVE  AT  THE
 PLEASURE OF THE DESIGNATING MEMBER DURING THE MEMBER'S TERM OF OFFICE. A
 REPRESENTATIVE  SHALL  NOT  BE  AUTHORIZED TO DELEGATE ANY OF HIS OR HER
 DUTIES OR FUNCTIONS TO ANY OTHER PERSON.
   C. THE MEMBERS OF THE BOARD SHALL SERVE FOR A TERM OF ONE YEAR.
   D. THREE MEMBERS OF THE BOARD SHALL CONSTITUTE A QUORUM, AND THE BOARD
 SHALL HAVE THE POWER TO ACT BY A MAJORITY VOTE OF THE  TOTAL  NUMBER  OF
 MEMBERS OF THE BOARD WITHOUT A VACANCY.
   E.  THE  MEMBERS OF THE BOARD SHALL NOT RECEIVE COMPENSATION BUT SHALL
 BE REIMBURSED FOR ACTUAL AND NECESSARY EXPENSES INCURRED IN THE PERFORM-
 ANCE OF THEIR OFFICIAL DUTIES.
   2. A. THE BOARD SHALL HAVE THE POWER  TO  AUTHORIZE  THE  ISSUANCE  OF
 BONDS  BY  A  MUNICIPALITY TO FUND A DEFICIT EXISTING AS OF THE CLOSE OF
 THE LAST PRECEDING FISCAL YEAR OF THE MUNICIPALITY OR PROJECTED TO EXIST
 AS OF THE CLOSE OF THE CURRENT FISCAL YEAR OF THE MUNICIPALITY.
   B. THE BOARD SHALL ONLY BE AUTHORIZED TO  AUTHORIZE  THE  ISSUANCE  OF
 BONDS BY A MUNICIPALITY TO FUND SUCH A DEFICIT UPON A: (I) TWO-THIRDS OF
 THE  TOTAL MEMBERSHIP OF THE LEGISLATIVE BODY OF A MUNICIPALITY; OR (II)
 THE CHIEF EXECUTIVE OFFICER OF A MUNICIPALITY CONCURRED IN BY A MAJORITY
 OF THE TOTAL MEMBERSHIP OF THE LEGISLATIVE BODY FOR  SUCH  MUNICIPALITY;
 AND (III) A DESIGNATION OF LEVEL THREE FISCAL STRESS PURSUANT TO SECTION
 SIXTY-FOUR  OF  THIS  ARTICLE;  OR  (IV)  A DESIGNATION OF FISCAL CRISIS
 PURSUANT TO SECTION SIXTY-FIVE OF THIS ARTICLE.
   C. PRIOR TO THE BOARD AUTHORIZING THE ISSUANCE OF BONDS TO FUND SUCH A
 DEFICIT PURSUANT TO THIS SUBDIVISION, THE COMPTROLLER SHALL FIRST REVIEW
 AND CONFIRM THE EXISTENCE OF THE DEFICIT, AS WELL AS CERTIFY THE  AMOUNT
 OF THE DEFICIT. AS SOON AS PRACTICABLE AFTER THE REQUEST TO THE BOARD IS
 MADE,  BUT  IN NO EVENT PRIOR TO THE CLOSE OF THE CURRENT FISCAL YEAR OF
 THE MUNICIPALITY IN THE CASE OF A PROJECTED  DEFICIT,  THE  MUNICIPALITY
 SHALL PREPARE A REPORT DETAILING THE AMOUNT AND CAUSE OF THE DEFICIT AND
 SUBMIT  TO THE COMPTROLLER SUCH REPORT, TOGETHER WITH THE MUNICIPALITY'S
 INDEPENDENT AUDIT REPORT FOR ITS LAST COMPLETED FISCAL YEAR, IF ANY SUCH
 AUDIT REPORT HAS BEEN OR IS TO BE PREPARED, AND SUCH  OTHER  INFORMATION
 AS  THE COMPTROLLER MAY DEEM NECESSARY. WITHIN THIRTY DAYS AFTER RECEIV-
 ING ALL NECESSARY REPORTS AND INFORMATION, THE  COMPTROLLER  SHALL:  (I)

 A. 1524                             8
 
 PERFORM SUCH REVIEWS AS MAY BE NECESSARY; (II) CONFIRM THE EXISTENCE AND
 CERTIFY THE AMOUNT OF THE DEFICIT; AND (III) SO NOTIFY THE BOARD.
   D.  AFTER  THE  COMPTROLLER NOTIFIES THE BOARD OF THE EXISTENCE OF THE
 DEFICIT AND THE AMOUNT OF THE DEFICIT AS CERTIFIED BY  THE  COMPTROLLER,
 THE BOARD SHALL THEN MAKE A DETERMINATION WHETHER TO AUTHORIZE THE ISSU-
 ANCE  OF BONDS BY THE MUNICIPALITY TO FUND THE DEFICIT. IN MAKING SUCH A
 DETERMINATION, THE BOARD MAY CONSIDER SEVERAL  FACTORS,  INCLUDING,  BUT
 NOT LIMITED TO:
   (I)  THE  SIZE  OF  THE  DEFICIT AS A PERCENTAGE OF THE MUNICIPALITY'S
 OVERALL BUDGET;
   (II) THE ABILITY OF THE MUNICIPALITY TO LIQUIDATE THE DEFICIT BY MEANS
 OTHER THAN THROUGH THE ISSUANCE OF BONDS;
   (III) THE EXISTENCE OF DEFICITS IN THE PAST FIVE YEARS AND THE ACTIONS
 TAKEN BY THE MUNICIPALITY TO LIQUIDATE THE DEFICIT;
   (IV) OTHER FACTORS AS DEEMED RELEVANT BY THE BOARD.
   E. ONCE THE BOARD  HAS  DETERMINED  THAT  A  MUNICIPALITY  SHALL  HAVE
 AUTHORIZATION  FOR  THE  ISSUANCE OF BONDS PURSUANT TO THIS SECTION, THE
 BOARD SHALL ISSUE A WRITTEN INSTRUMENT AUTHORIZING THE  MUNICIPALITY  TO
 ISSUE  BONDS  IN  THE  AMOUNT  OF THE DEFICIT, AS CERTIFIED BY THE COMP-
 TROLLER PURSUANT TO PARAGRAPH C OF THIS SUBDIVISION. IN ANTICIPATION  OF
 THE ISSUANCE OF SUCH BONDS, BOND ANTICIPATION NOTES MAY BE ISSUED BY THE
 MUNICIPALITY.
   F. IT IS HEREBY DETERMINED THAT THE FINANCING OF DEFICITS AS HEREINBE-
 FORE  DESCRIBED  IS  AN  OBJECT OR PURPOSE OF THE MUNICIPALITY FOR WHICH
 INDEBTEDNESS MAY BE INCURRED, THE PERIOD OF PROBABLE USEFULNESS OF WHICH
 IS DETERMINED TO BE TEN YEARS, COMPUTED FROM THE DATE OF SUCH  BONDS  OR
 THE  DATE  OF THE FIRST BOND ANTICIPATION NOTE ISSUED IN ANTICIPATION OF
 THE SALE OF SUCH BONDS, WHICHEVER IS EARLIER. THE BOARD, IN  AUTHORIZING
 THE  ISSUANCE  OF  BONDS, MAY PRESCRIBE A MAXIMUM MATURITY OF THE BONDS,
 NOT TO EXCEED TEN YEARS, COMPUTED FROM THE DATE OF  SUCH  BONDS  OR  THE
 DATE  OF THE FIRST BOND ANTICIPATION NOTE ISSUED IN ANTICIPATION OF SUCH
 BONDS, WHICHEVER IS EARLIER.
   G. THE BOARD SHALL MAKE A DETERMINATION WHETHER TO AUTHORIZE THE ISSU-
 ANCE OF BONDS TO FINANCE A DEFICIT PURSUANT TO THIS  SUBDIVISION  WITHIN
 THIRTY  DAYS  OF  RECEIVING  THE REPORT FROM THE COMPTROLLER PURSUANT TO
 PARAGRAPH C OF THIS SUBDIVISION.
   3. A MUNICIPALITY THAT HAS REQUESTED AUTHORIZATION TO ISSUE  BONDS  TO
 FUND  A  DEFICIT  PURSUANT  TO  THIS SECTION MAY ISSUE BOND ANTICIPATION
 NOTES FOR A TERM NOT TO EXCEED ONE YEAR FOR THE PURPOSE  OF  LIQUIDATING
 SUCH  DEFICIT  PRIOR  TO  A  DETERMINATION BY THE BOARD TO AUTHORIZE THE
 ISSUANCE OF BONDS BY THE MUNICIPALITY TO FUND THE  DEFICIT  PURSUANT  TO
 THIS SECTION. IN THE EVENT THAT BOND ANTICIPATION NOTES ARE ISSUED IN AN
 AMOUNT IN EXCESS OF THE AMOUNT OF SUCH DEFICIT AS CERTIFIED BY THE COMP-
 TROLLER,  SUCH  MUNICIPALITY  SHALL,  FROM  FUNDS OTHER THAN PROCEEDS OF
 BONDS OR BOND ANTICIPATION NOTES, EITHER REDEEM SUCH  BOND  ANTICIPATION
 NOTES  IN THE AMOUNT BY WHICH THE AMOUNT OF SUCH BOND ANTICIPATION NOTES
 EXCEED THE AMOUNT OF SUCH DEFICIT AS CERTIFIED  BY  THE  COMPTROLLER  OR
 DEPOSIT  A SUM EQUAL TO THE AMOUNT BY WHICH SUCH BOND ANTICIPATION NOTES
 EXCEED THE AMOUNT OF SUCH DEFICIT AS CERTIFIED BY THE COMPTROLLER INTO A
 RESERVE FUND FOR THE PAYMENT OF BONDED INDEBTEDNESS ESTABLISHED PURSUANT
 TO SECTION SIX-H OF THIS CHAPTER. IN THE EVENT  THAT  BOND  ANTICIPATION
 NOTES  ARE ISSUED AND THE BOARD DOES NOT AUTHORIZE THE ISSUANCE OF BONDS
 TO FINANCE SUCH DEFICIT, SUCH MUNICIPALITY SHALL, FROM FUNDS OTHER  THAN
 THE PROCEEDS OF BONDS OR BOND ANTICIPATION NOTES, REDEEM THE FULL AMOUNT
 OF SUCH BOND ANTICIPATION NOTES.

 A. 1524                             9
 
   4. THE DETERMINATION OF THE BOARD WHETHER TO AUTHORIZE THE ISSUANCE OF
 BONDS  PURSUANT  TO  THIS  SECTION SHALL BE DEEMED FINAL AND MAY ONLY BE
 SUBJECT TO REVIEW BY A PROCEEDING COMMENCED UNDER ARTICLE  SEVENTY-EIGHT
 OF  THE  CIVIL  PRACTICE LAW AND RULES, PROVIDED THAT SUCH PROCEEDING IS
 COMMENCED WITHIN THIRTY DAYS OF THE NOTICE OF THE DETERMINATION GIVEN BY
 CERTIFIED  MAIL  RETURN  RECEIPT REQUESTED RENDERING SUCH FINAL DETERMI-
 NATION.
   5. THE COMPTROLLER SHALL PROVIDE ALL NECESSARY ASSISTANCE TO THE BOARD
 INCLUDING, BUT NOT LIMITED TO, STAFFING AND SUPPORT, SO THAT  THE  BOARD
 MAY CARRY OUT ITS POWERS AND DUTIES PURSUANT TO THIS SECTION.
   6.  TO FACILITATE THE MARKETING OF BONDS AUTHORIZED PURSUANT TO LAW TO
 BE ISSUED TO FUND A DEFICIT, THE MUNICIPALITY MAY,  NOTWITHSTANDING  ANY
 LIMITATION  ON THE PRIVATE SALES OF BONDS PROVIDED BY LAW AND SUBJECT TO
 THE APPROVAL OF THE COMPTROLLER OF THE  TERMS  AND  CONDITIONS  OF  SUCH
 SALES:  (A)  ARRANGE  FOR THE UNDERWRITING OF SUCH BONDS AT PRIVATE SALE
 THROUGH NEGOTIATED FEES OR BY SALE OF SUCH BONDS TO AN UNDERWRITER AT  A
 PRICE  LESS  THAN  THE SUM OF PAR VALUE OF, AND THE ACCRUED INTEREST ON,
 SUCH OBLIGATIONS; OR (B) ARRANGE FOR THE  PRIVATE  SALE  OF  SUCH  BONDS
 THROUGH  NEGOTIATED  AGREEMENT,  WITH  COMPENSATION FOR SUCH SALES TO BE
 PROVIDED BY NEGOTIATED AGREEMENT AND/OR  NEGOTIATED  FEE,  IF  REQUIRED.
 THE  COST  OF  SUCH  UNDERWRITING OR PRIVATE PLACEMENT SHALL BE DEEMED A
 PRELIMINARY COST FOR PURPOSES OF SECTION 11.00 OF THE LOCAL FINANCE LAW.
   7. EXCEPT AS PROVIDED IN THIS ARTICLE, ALL PROCEEDINGS  IN  CONNECTION
 WITH  THE  ISSUANCE OF BONDS OR BOND ANTICIPATION NOTES AUTHORIZED TO BE
 ISSUED PURSUANT TO THIS SECTION SHALL BE HAD  AND  TAKEN  IN  ACCORDANCE
 WITH  THE  PROVISIONS  OF THE LOCAL FINANCE LAW, PROVIDED, HOWEVER, THAT
 ANY RESOLUTION OR RESOLUTIONS AUTHORIZING THE  ISSUANCE  OF  SUCH  BONDS
 SHALL NOT BE SUBJECT TO EITHER A MANDATORY OR PERMISSIVE REFERENDUM.
   8.  A  MUNICIPALITY  WHICH  IS HEREAFTER AUTHORIZED PURSUANT TO LAW TO
 ISSUE BONDS TO FUND A DEFICIT:
   A. SHALL BE SUBJECT TO SUCH REQUIREMENTS OF SUBDIVISION TWO OF SECTION
 SIXTY-FOUR OF THIS ARTICLE AS THE COMPTROLLER DEEMS APPROPRIATE.
   B. IN ANY FISCAL YEAR BEGINNING WITH THE  FISCAL  YEAR  IN  WHICH  THE
 MUNICIPALITY ISSUES DEBT TO FUND SUCH DEFICIT, TO AND INCLUDING THE LAST
 FISCAL  YEAR  DURING WHICH SUCH DEBT OR ANY DEBT INCURRED TO REFUND SUCH
 DEBT IS OUTSTANDING, THE MUNICIPALITY SHALL NOT ISSUE ANY FURTHER  BONDS
 OR  BOND  ANTICIPATION  NOTES UNLESS AND UNTIL THE AFFORDABILITY OF SUCH
 ADDITIONAL DEBT TO THE TAX BASE SUPPORTING  THE  INDEBTEDNESS  HAS  BEEN
 REVIEWED  BY THE COMPTROLLER AND THE MUNICIPALITY HAS RESPONDED IN WRIT-
 ING TO RECOMMENDATIONS, IF  ANY,  WHICH  THE  COMPTROLLER  MAY,  IN  HIS
 DISCRETION,  MAKE  THEREON. THE COMPTROLLER MAY REQUIRE THE CHIEF FISCAL
 OFFICER OF THE MUNICIPALITY TO PREPARE AND SUBMIT:   (I)  A  PLAN  WHICH
 DETAILS THE PROJECTED FISCAL IMPACT OF THE PROPOSED ISSUANCE OF BONDS OR
 BOND ANTICIPATION NOTES INCLUDING FINANCING COSTS, AND FUTURE DIRECT AND
 INDIRECT OPERATING COSTS OF, AND ANY RESULTING REVENUES FROM, THE OBJECT
 OR  PURPOSE TO BE FINANCED; AND (II) AN ANALYSIS OF THE AFFORDABILITY TO
 THE TAX BASE SUPPORTING THE DEBT SERVICE ON  THE  BONDS  OR  NOTES.  THE
 COMPTROLLER  MAY REQUIRE SUCH OTHER INFORMATION AS THE COMPTROLLER DEEMS
 NECESSARY TO COMPLETE THE REVIEW OF AFFORDABILITY. THE COMPTROLLER SHALL
 MAKE ANY RECOMMENDATIONS WITHIN THIRTY DAYS OF RECEIPT OF  ALL  INFORMA-
 TION NECESSARY TO COMPLETE THE REVIEW OF AFFORDABILITY.
   C.  FOR  EACH  FISCAL  YEAR OCCURRING DURING THE TIME DEFICIT BONDS OR
 NOTES ARE OUTSTANDING, THE CHIEF FISCAL OFFICER OF THE  MUNICIPALITY  ON
 WHOSE  BEHALF SUCH DEFICIT BONDS OR NOTES HAVE BEEN ISSUED SHALL MONITOR
 ITS BUDGETS AND FOR EACH BUDGET, PREPARE A QUARTERLY  REPORT  OF  SUMMA-
 RIZED BUDGET DATA DEPICTING OVERALL TRENDS OF ACTUAL REVENUES AND BUDGET

 A. 1524                            10

 EXPENDITURES  FOR  THE  ENTIRE BUDGET RATHER THAN INDIVIDUAL LINE ITEMS.
 SUCH REPORTS SHALL COMPARE REVENUE ESTIMATES AND APPROPRIATIONS  AS  SET
 FORTH  IN  SUCH BUDGET WITH THE ACTUAL REVENUES AND EXPENDITURES MADE TO
 DATE.  ALL QUARTERLY REPORTS SHALL BE ACCOMPANIED BY A RECOMMENDATION BY
 THE CHIEF EXECUTIVE OFFICER SETTING FORTH ANY REMEDIAL ACTION  NECESSARY
 TO  RESOLVE ANY UNFAVORABLE BUDGET VARIANCE INCLUDING THE OVERESTIMATION
 OF REVENUES AND THE UNDERESTIMATION  OF  APPROPRIATIONS,  AND  SHALL  BE
 COMPLETED WITHIN THIRTY DAYS OF THE END OF EACH QUARTER. THE ABOVE QUAR-
 TERLY  BUDGETARY  REPORT  SHALL BE PREPARED IN ACCORDANCE WITH GENERALLY
 ACCEPTED ACCOUNTING PRINCIPLES. THESE REPORTS SHALL BE SUBMITTED TO  THE
 LOCAL  GOVERNING  BODY AND CHIEF EXECUTIVE OFFICER OF SUCH MUNICIPALITY,
 THE STATE DIRECTOR OF THE BUDGET, THE STATE COMPTROLLER, THE CHAIRMAN OF
 THE ASSEMBLY WAYS AND MEANS COMMITTEE AND THE  CHAIRMAN  OF  THE  SENATE
 FINANCE COMMITTEE.
   D.  PARAGRAPHS  A, B AND C OF THIS SUBDIVISION SHALL ALSO APPLY TO ANY
 MUNICIPALITY THAT DIRECTLY OR INDIRECTLY UTILIZES THE PROCEEDS  OF  DEBT
 ISSUED  BY  ANY PUBLIC BENEFIT CORPORATION OR NOT-FOR-PROFIT CORPORATION
 TO FUND A DEFICIT OF THE MUNICIPALITY.    ANY  SUCH  MUNICIPALITY  SHALL
 COMPLY WITH SUCH PARAGRAPHS BEGINNING WITH ITS FISCAL YEAR IN WHICH SUCH
 DEBT HAS BEEN ISSUED, TO AND INCLUDING THE LAST FISCAL YEAR DURING WHICH
 SUCH DEBT OR ANY DEBT TO REFUND SUCH DEBT IS OUTSTANDING.
   §  67.  INCONSISTENCY  WITH  OTHER LAWS. TO THE EXTENT THIS ARTICLE IS
 INCONSISTENT WITH ANY GENERAL, SPECIAL OR LOCAL  LAW  CONCERNING  BUDGET
 PROCEDURES, THIS ARTICLE SHALL APPLY.
   §  68.  NOTICE OF BENCHMARKS AND ADDITIONAL CRITERIA. THE COMPTROLLER,
 AT LEAST BIENNIALLY, SHALL PROVIDE TO  MUNICIPALITIES  NOTICE,  IN  SUCH
 MANNER  AS  THE  COMPTROLLER  DEEMS  APPROPRIATE, OF ALL BENCHMARKS, ALL
 COMMONLY ACCEPTED CRITERIA OR FISCAL STRESS OR SUSCEPTIBILITY TO  FISCAL
 STRESS, AND ANY DEFINITION OF NON-RECURRING REVENUES AS MAY BE SPECIFIED
 BY THE COMPTROLLER FOR PURPOSES OF THIS ARTICLE.
   §  69. REPORTS. NOT LATER THAN DECEMBER THIRTY-FIRST OF EACH YEAR, THE
 COMPTROLLER SHALL FILE AN ANNUAL REPORT WITH THE GOVERNOR, THE CHAIR  OF
 THE  SENATE  FINANCE COMMITTEE, THE CHAIR OF THE ASSEMBLY WAYS AND MEANS
 COMMITTEE, AND THE STATE DIRECTOR OF THE BUDGET ON THE FINANCIAL  CONDI-
 TION,  DURING  THEIR  LAST COMPLETED FISCAL YEARS, OF THE MUNICIPALITIES
 WHICH ARE SUBJECT TO THE PROVISIONS OF SECTION SIXTY-THREE,  SIXTY-FOUR,
 SIXTY-FIVE  OR  SIXTY-SIX OF THIS ARTICLE. THE REPORT SHALL BE IN SUFFI-
 CIENT FORM AND DETAIL TO PERMIT AN ACCURATE DEPICTION OF  THE  FINANCIAL
 CONDITION  OF  EACH SUCH MUNICIPALITY. THE COMPTROLLER SHALL ALSO NOTIFY
 THE GOVERNOR, THE CHAIR OF THE SENATE FINANCE COMMITTEE,  THE  CHAIR  OF
 THE  ASSEMBLY  WAYS  AND  MEANS COMMITTEE, AND THE STATE DIRECTOR OF THE
 BUDGET, AS SOON AS PRACTICABLE, IN ANY CASE WHERE  THE  COMPTROLLER  HAS
 IDENTIFIED A MUNICIPALITY PURSUANT TO SECTION SIXTY-THREE, SIXTY-FOUR OR
 SIXTY-SIX OF THIS ARTICLE.
   §  69-A.  NO DUPLICATION. NOTHING IN THIS ARTICLE SHALL BE INTERPRETED
 TO REQUIRE EITHER THE COMPTROLLER OR  A  MUNICIPALITY  TO  DUPLICATE  AN
 OVERSIGHT  OR REPORTING FUNCTION DUE TO THE APPLICATION OF MORE THAN ONE
 PROVISION OF THIS ARTICLE OR ANY OTHER RELATED PROVISION OF LAW TO  SUCH
 FUNCTION.
   § 3. This act shall take effect immediately.