S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9900
 
                           I N  A S S E M B L Y
 
                             February 21, 2018
                                ___________
 
 Introduced  by  M. of A. FITZPATRICK, FINCH, BRABENEC -- Multi-Sponsored
   by -- M. of A.   BUTLER, HAWLEY, JOHNS,  LAWRENCE  --  read  once  and
   referred to the Committee on Education
 
 AN  ACT  to  amend the real property tax law, in relation to limitations
   upon school district tax levies (Part A); to amend the general munici-
   pal law and the education law, in relation to requiring the  state  to
   fund  certain  programs mandated for municipal corporations and school
   districts; to amend the legislative law, in relation to requiring  the
   estimated  cost of mandated expenditures and appropriations within the
   body of the bill; to amend the  education  law,  in  relation  to  the
   streamlining   of  planning  and  reporting  requirements  for  school
   districts and boards of cooperative educational services; to amend the
   education law, in relation to the effectiveness of additional costs to
   school districts; and to amend the education law, in relation  to  aid
   for  fourth  and  eighth  grade student testing (Part B); to amend the
   social services law, in relation to  state  payment  of  all  optional
   medical  assistance  services and to the state reimbursement of county
   payments for medical assistance fraud, waste and abuse detection soft-
   ware (Part C); to amend the education  law,  the  executive  law,  the
   general municipal law, the labor law, the penal law and the retirement
   and  social  security  law,  in  relation  to  the oversight of school
   district contracts and spending; and to amend  the  general  municipal
   law, in relation to establishing a municipal cooperation program (Part
   D);  and  authorizing  a  county to enter into a cooperative agreement
   with school districts,  towns  and  villages  within  such  county  to
   provide for health care benefits for their employees (Part E)
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   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-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD13977-01-7

 A. 9900                             2
 
 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.
   § 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
 control property tax increases. This act controls property tax increases
 by preventing school districts from increasing tax levies by  more  than
 two percent each year or at the rate of inflation, whichever is less.
   § 2. The real property tax law is amended by adding a new section 1307
 to read as follows:
   §  1307.  LIMITATIONS  UPON SCHOOL DISTRICT TAX LEVIES. 1.  GENERALLY.
 NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, BEGINNING WITH THE
 TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN 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  TWO
 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
 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-

 A. 9900                             3
 
 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 COMMISSIONER.
   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.
   § 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:
   § 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.
   (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

 A. 9900                             4
 
 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.
   §  2.  The  education law is amended by adding a new section 1527-a to
 read as follows:
   § 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
 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

 A. 9900                             5
 
 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.
   §  3.   The legislative law is amended by adding a new section 52-a to
 read as follows:
   § 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.
   §  4. Section 215-b of the education law, as amended by chapter 301 of
 the laws of 1996, is amended to read as follows:
   § 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

 A. 9900                             6

 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.
   §  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-
 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

 A. 9900                             7
 
 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
 EDUCATIONAL  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 DEPART-
 MENT  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 ADDI-
 TIONAL  INFORMATION  WHERE  IT  DETERMINES  THAT  THE INFORMATION IN THE
 COMPREHENSIVE 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
 STATE OR FEDERAL AID OR  FOR  PURPOSES  OF  SCHOOL  OR  SCHOOL  DISTRICT
 ACCOUNTABILITY OR FOR AUDIT PURPOSES.
   §  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

 A. 9900                             8
 
 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.
   §  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
 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.
   § 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

 A. 9900                             9
 
 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.
   §  9.  The  education  law is amended by adding a new section 207-b to
 read as follows:
   § 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.
   § 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  NINE-
 TEEN--TWO  THOUSAND TWENTY SCHOOL YEAR AND THEREAFTER, A SCHOOL DISTRICT
 SHALL BE ELIGIBLE FOR REIMBURSEMENT UNDER THE PROVISIONS OF THIS  SUBDI-
 VISION EQUAL TO ONE HUNDRED PERCENT OF ALL COSTS 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.
   § 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, 2018
 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 have become a law.  The commis-
 sioner 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
 
   Section  1.  Legislative  intent.  The legislature finds that Medicaid
 waste, fraud and abuse increase 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.
   §  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

 A. 9900                            10
 
 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.
   § 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.
   § 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
 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.
   §  2.  The  education law is amended by adding a new section 2116-d to
 read as follows:
   § 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

 A. 9900                            11
 
 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.
   § 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
 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.
   §  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-

 A. 9900                            12
 
 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.
   § 5. Section 2215 of the education law is  amended  by  adding  a  new
 subdivision 18 to read as follows:
   18.  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.
   §  6.  The  education law is amended by adding a new section 2116-e to
 read as follows:
   § 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  NINETEEN  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.
   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 NINETEEN;
   (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.

 A. 9900                            13

   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.
   § 7. The education law is amended by adding a new  section  2009-a  to
 read as follows:
   §  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 DISTRICTWIDE 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.
   § 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
 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,

 A. 9900                            14
 
 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.
   § 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
 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.

 A. 9900                            15
 
   §  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.
   § 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.
   §  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

 A. 9900                            16
 
 SHALL  BE SUBJECT TO A CIVIL PENALTY NOT TO EXCEED FIVE THOUSAND DOLLARS
 UPON AN ADMINISTRATIVE DETERMINATION BY THE COMMISSIONER.
   § 13. The executive law is amended by adding a new article 4-C to read
 as follows:
                                 ARTICLE 4-C
            OFFICE OF THE STATE INSPECTOR GENERAL FOR EDUCATION
 
 SECTION 59. ESTABLISHMENT AND ORGANIZATION.
         59-A.  FUNCTIONS AND DUTIES.
         59-B. POWERS.
   §  59. 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
 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-NINE-A AND
 FIFTY-NINE-B 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

 A. 9900                            17
 
 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.
   §  59-A.  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-
 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.

 A. 9900                            18
 
   § 59-B. 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.
   § 14. Subparagraphs 2 and 3 of paragraph b of subdivision 2 of section
 33 of the general municipal law, as amended by section 24 of  subpart  F
 of  part  C  of  chapter  97  of the laws of 2011, 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,  including  whether  any  school district that uses a
 risk-based or sampling methodology to determine which claims are  to  be
 audited  in  lieu  of auditing all claims has adopted a methodology that
 provides reasonable assurance that all the  claims  represented  in  the
 sample are proper charges against the school district; [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.
   § 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-
 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.
   § 16. The labor law is amended by adding a new section 742 to read  as
 follows:
   §  742.  PROHIBITION;  PUBLIC  SCHOOL  DISTRICT EMPLOYER WHO PENALIZES
 EMPLOYEES BECAUSE OF COMPLAINTS  OF  EMPLOYER  MALFEASANCE.  1.    DEFI-

 A. 9900                            19
 
 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.
   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.
   § 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

 A. 9900                            20

 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.
   §  18. The penal law is amended by adding a new section 190.73 to read
 as follows:
 § 190.73 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.
   § 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.
   § 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:
   §  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
 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.
   §  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 26. MUNICIPAL COOPERATION PROGRAM.

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   § 26. 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.
   (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-

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 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.
   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

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 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.
   § 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
 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.
   § 2. This act shall take effect immediately.
   § 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-

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 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.
   §  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.