S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3614
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 30, 2017
                                ___________
 
 Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
   tee on Corporations, Authorities 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:
   § 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07597-01-7
              

 A. 3614                             2
 
   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
 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

 A. 3614                             3
 
 VALID UPON PASSAGE OF A WRITTEN RESOLUTION OF REINSTATEMENT BY A MAJORI-
 TY AND RECORDED VOTE OF THE CURRENT BOARD OF DIRECTORS. SUCH  RESOLUTION
 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.
   §  2.  This  act shall take effect on the thirtieth day after it shall
 have become a law.