The New York State Senate

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

                                  1872

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                            January 17, 2019
                               ___________

Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
  printed to be committed to the Committee 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  SUBMIT  ANY  REPORT  REQUIRED  BY  SECTION  TWENTY-EIGHT
HUNDRED  OF  THIS  CHAPTER WITHIN THIRTY-SIX MONTHS OF ITS DUE DATE. THE
AUTHORITIES 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04270-01-9

S. 1872                             2

NECESSARY TO RESOLVE THE NONCOMPLIANCE  OR  SATISFY  EXISTING  LEGAL  OR
ADMINISTRATIVE OBLIGATIONS.
  2.  (A)  PURSUANT TO POLICIES AND PROCEDURES DEVELOPED BY THE AUTHORI-
TIES BUDGET OFFICE AND MADE AVAILABLE ON ITS WEBSITE, 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  SUBMIT  ANY
REPORT  REQUIRED  BY SECTION TWENTY-EIGHT HUNDRED OF THIS CHAPTER WITHIN
THIRTY-SIX MONTHS OF ITS DUE DATE, 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 SUBMIT ANY REPORT REQUIRED  BY  SECTION
TWENTY-EIGHT HUNDRED OF THIS CHAPTER WITHIN THIRTY-SIX MONTHS OF ITS DUE
DATE,  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 WHICH THE LEGISLATIVE BODY HAS REACHED
THIS DETERMINATION. IF THE APPOINTING AUTHORITY IS THE  CHIEF  EXECUTIVE
OFFICIAL  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

S. 1872                             3

AUTHORITY MAY INITIATE ACTION TO REINSTATE THE SUSPENDED CHIEF EXECUTIVE
OFFICER. ANY ACTION TO REINSTATE A  SUSPENDED  CHIEF  EXECUTIVE  OFFICER
SHALL  OCCUR IN A PUBLIC MEETING OF THE BOARD OF DIRECTORS AND FOLLOWING
AN  OPPORTUNITY  FOR  THE PUBLIC TO COMMENT. SUCH ACTION SHALL BE DEEMED
VALID UPON PASSAGE OF A WRITTEN RESOLUTION OF REINSTATEMENT BY A MAJORI-
TY AND RECORDED VOTE OF THE CURRENT BOARD OF DIRECTORS. SUCH  RESOLUTION
SHALL  DESCRIBE THE FACTS AND CIRCUMSTANCES BY WHICH THE BOARD OF DIREC-
TORS 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 ninetieth day  after  it  shall
have become a law.