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A08086 Summary:

BILL NOA08086
 
SAME ASSAME AS UNI. S05865
 
SPONSORFarrell
 
COSPNSR
 
MLTSPNSR
 
Amd S54, St Fin L; add S160.05, Loc Fin L; amd S209, Civ Serv L
 
Establishes the financial restructuring board for local governments; relates to public arbitration panels for deciding whether public employers are fiscally eligible.
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A08086 Actions:

BILL NOA08086
 
06/18/2013referred to ways and means
06/20/2013reported referred to rules
06/20/2013reported
06/20/2013rules report cal.675
06/20/2013ordered to third reading rules cal.675
06/20/2013passed assembly
06/20/2013delivered to senate
06/20/2013REFERRED TO RULES
06/20/2013recalled from senate
06/20/2013RETURNED TO ASSEMBLY
06/20/2013vote reconsidered - restored to third reading
06/21/2013repassed assembly
06/21/2013returned to senate
06/20/2013RECOMMITTED TO RULES
06/21/2013SUBSTITUTED FOR S5865
06/21/20133RD READING CAL.1568
06/21/2013PASSED SENATE
06/21/2013RETURNED TO ASSEMBLY
06/24/2013delivered to governor
06/24/2013signed chap.67
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A08086 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
            S. 5865                                                  A. 8086
 
                               2013-2014 Regular Sessions
 
                SENATE - ASSEMBLY
 
                                      June 18, 2013
                                       ___________
 
        IN  SENATE -- Introduced by Sens. MARTINS, VALESKY -- (at request of the
          Governor) -- read twice and ordered printed, and when  printed  to  be
          committed to the Committee on Rules
 
        IN  ASSEMBLY  --  Introduced  by  M. of A. FARRELL -- (at request of the
          Governor) -- read once and referred to the Committee on Ways and Means
 

        AN ACT to amend the state finance law, the local  finance  law  and  the
          civil  service  law,  in relation to the financial restructuring board
          for local governments; and to amend the civil service law, in relation
          to public arbitration panels determinations of whether public  employ-
          ers are fiscally eligible
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Paragraph t of subdivision 10 of section 54  of  the  state
     2  finance  law,  as added by section 3 of part K of chapter 57 of the laws
     3  of 2011 and as relettered by section 3 of part K of chapter  55  of  the
     4  laws of 2013, and subparagraph (vii) as added and subparagraph (viii) as
     5  renumbered  by  section 3-a of part K of chapter 55 of the laws of 2013,
     6  is amended to read as follows:

     7    t. Local government performance and efficiency program.  (i) (1) Defi-
     8  nitions.  For the purposes of this  [paragraph]  subparagraph,  "munici-
     9  pality"  shall  mean  a  county,  city,  town, or village, but shall not
    10  include the individual counties contained in the city of New York.
    11    [(ii)] (2) Purpose. [There is hereby established  a  local  government
    12  performance  and  efficiency  program.]  The  purpose  of [this program]
    13  awards made pursuant to this subparagraph is to recognize municipalities
    14  that have undertaken significant and innovative actions to  improve  the
    15  overall  efficiency  of governmental operations and produce quantifiable
    16  recurring financial savings that reduce  the  municipal  tax  burden  on
    17  residents.
 

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD12047-01-3

        S. 5865                             2                            A. 8086
 
     1    [(iii)]  (3)  Eligibility.  All  municipalities  in New York state are
     2  eligible to apply individually or jointly, provided however that  if  an
     3  action  was  undertaken  jointly,  municipalities must apply jointly for
     4  such an action. The actions for which they apply must already have  been
     5  implemented.
     6    [(iv)]  (4)  Use  of awards. Awards received [pursuant to the program]
     7  shall be used by municipalities for general municipal purposes.

     8    [(v)] (5) Application. The secretary of state shall develop an  appli-
     9  cation  for  municipalities  seeking  to receive awards and a process by
    10  which the applications will be evaluated. Such application shall require
    11  municipalities to demonstrate how the action for which they have applied
    12  has resulted in quantifiable recurring savings, efficiencies, and perma-
    13  nent improvements to municipal services.  The  secretary  of  state  may
    14  focus  the  [program]  awards  in  specific functional service areas, in
    15  which case such areas of focus shall be detailed in a request for appli-
    16  cations. No application shall be considered for actions  that  commenced
    17  prior to January first, two thousand ten.
    18    [(vi)]  (6) Awards.   The secretary of state may make awards to appli-

    19  cants based on factors including, but not  limited  to,  the  amount  of
    20  current and future savings, the impact of such action upon the municipal
    21  property tax levy, the size and complexity of the action, and the abili-
    22  ty for the action to be replicated by other municipalities. Awards shall
    23  only  be  made to municipalities for actions that have been fully imple-
    24  mented, that clearly resulted in quantifiable savings and  efficiencies,
    25  and  that  produced permanent and quantifiable improvements to municipal
    26  efficiency or services. The maximum amount awarded per application shall
    27  not exceed the lesser of five million dollars or twenty-five dollars per
    28  resident of the applying municipalities as of the  most  recent  federal
    29  decennial  census,  provided, however, that if the boundaries of munici-
    30  palities jointly applying for such funding  overlap,  the  residents  in

    31  overlapping  areas  shall  only  be counted once, and provided, further,
    32  that if a county jointly applies with some but  not  all  of  the  other
    33  municipalities  therein, only the residents in such other municipalities
    34  shall be counted.
    35    [(vii)] (7) Written notice shall be provided  to  an  applicant  of  a
    36  decision regarding the grant or denial of an award under this paragraph,
    37  within thirty days after such decision.
    38    [(viii)]  (8)  Regulation.  The secretary of state shall, prior to the
    39  establishment of applications, promulgate rules and regulations  on  the
    40  [program]  awards, including but not limited to award eligibility crite-
    41  ria and application, review and approval procedures.
    42    (ii)(1) Definitions. For the purposes of this subparagraph,  "fiscally

    43  eligible municipality" shall have the same meaning as "fiscally eligible
    44  municipality" as defined by section 160.05 of the local finance law. For
    45  the  purposes  of  this subparagraph, "financial restructuring board for
    46  local governments" or "board" shall  mean  the  financial  restructuring
    47  board for local governments as authorized by section 160.05 of the local
    48  finance law.
    49    (2)  In  addition  to awards made pursuant to subparagraph (i) of this
    50  paragraph, the board may award  funding  to  fiscally  eligible  munici-
    51  palities for financial restructuring and related purposes, as determined
    52  by  the  board.  This  funding  may be structured as a loan, a grant, or
    53  combination thereof. The amount of such funding  to  be  provided  to  a

    54  fiscally  eligible  municipality,  the  structure  of  such funding, any
    55  conditions to be placed on a fiscally eligible municipality that accepts
    56  such funding, and any other aspects of funding awarded pursuant to  this

        S. 5865                             3                            A. 8086
 
     1  subparagraph shall be determined by an affirmative vote of a majority of
     2  the  total  number of members of the board and may differ for each award
     3  of funding.  Such loans shall not be bound by the local finance law with
     4  respect  to  terms and repayment limitations but in no event may the sum
     5  of all awards pursuant to this subparagraph be greater than five million
     6  dollars for any single municipality nor may any loan be for a term long-

     7  er than ten years.  Further, any such loans shall not be considered debt
     8  for purposes of calculating constitutional limit provisions.    Notwith-
     9  standing  any  other law to the contrary, the director of the budget may
    10  direct the state comptroller to withhold any state aid payments due to a
    11  fiscally eligible municipality in order to satisfy the repayment  condi-
    12  tions of the funding awarded pursuant to this subparagraph.
    13    §  2.  The local finance law is amended by adding a new section 160.05
    14  to read as follows:
    15    § 160.05. Financial restructuring  board  for  local  governments.  1.
    16  There  shall  be  a  financial restructuring board for local governments
    17  which shall consist of ten members: the director of the budget who shall

    18  be chair of the board, the attorney general, the state comptroller,  and
    19  the  secretary  of state, each of whom may designate a representative to
    20  attend sessions of the board on his  or  her  behalf,  and  six  members
    21  appointed  by  the  governor, one of whom upon the recommendation of the
    22  temporary president of the senate, one of whom upon  the  recommendation
    23  of  the speaker of the assembly, and four other members appointed by the
    24  governor, one of whom shall have  significant  experience  in  municipal
    25  financial  and  restructuring matters.  In making such appointments, the
    26  governor shall consider regional diversity.  Appointees shall  serve  at
    27  the  pleasure  of  his or her appointing authority. The appointee of the

    28  governor who has been designated as  having  significant  experience  in
    29  municipal financial and restructuring matters shall receive fair compen-
    30  sation  for his or her services performed pursuant to this section in an
    31  amount to be determined by the director of the budget  and  all  members
    32  shall be reimbursed for all reasonable expenses actually and necessarily
    33  incurred  by  him  or  her in the performance of his or her duties.  The
    34  board shall have the power to act by an affirmative vote of  a  majority
    35  of  the total number of members and shall render its findings and recom-
    36  mendations within six months of being requested to  act  by  a  fiscally
    37  eligible municipality. The provisions of section seventeen of the public

    38  officers law shall apply to members of the board. No member of the board
    39  shall be held liable for the performance of any function or duty author-
    40  ized  by  this  section.   The work of the board shall be conducted with
    41  such staff as the director of the budget, the secretary  of  state,  the
    42  attorney  general  and  the state comptroller shall make available.  All
    43  proceedings, meetings and hearings conducted by the board shall be  held
    44  in the city of Albany.
    45    2.  A  "fiscally  eligible  municipality" shall mean any county, city,
    46  excluding a city with a population greater than one  million,  town,  or
    47  village  that the board, on a case by case basis, determines would bene-
    48  fit from the services and assistance which the board has legal authority

    49  to offer.  In evaluating whether a municipality is a  fiscally  eligible
    50  municipality,  the  board shall consider the average full value property
    51  tax rate of such public employer and the average fund balance percentage
    52  of such public employer and such other criteria as the board deems rele-
    53  vant.  For purposes of this section,  "full  value  property  tax  rate"
    54  shall  mean  the  amount  to  be raised by tax on real estate by a local
    55  government in a given fiscal year divided by the full valuation of taxa-
    56  ble real estate for that same fiscal year as reported to the  office  of

        S. 5865                             4                            A. 8086
 
     1  the state comptroller; "average full value property tax rate" shall mean

     2  the  sum  of  the full value property tax rates for the five most recent
     3  fiscal years divided by five; "fund balance percentage" shall  mean  the
     4  total  fund balance in the general fund of a local government in a given
     5  fiscal year divided by the total expenditures from the general fund  for
     6  that  same  fiscal  year  as  reported  to the office of the state comp-
     7  troller; and "average fund balance percentage" shall mean the sum of the
     8  fund balance percentages for the five  most  recently  completed  fiscal
     9  years divided by five.
    10    (a)  If  the average full value property tax rate of such municipality
    11  is greater than the average full value property tax rate of seventy-five
    12  percent of counties, cities, towns,  and  villages,  with  local  fiscal

    13  years ending in the same calendar year as of the most recently available
    14  information,  the  board  must find that such municipality is a fiscally
    15  eligible municipality.  The office of the state comptroller  shall  make
    16  publicly  available  the  list  of counties, cities, towns, and villages
    17  that have an average full value property tax rate that meets such crite-
    18  ria in each local fiscal year. If a municipality has not reported to the
    19  office of the state comptroller the information necessary  to  calculate
    20  its  average  full value property tax rate, such municipality may not be
    21  deemed a fiscally eligible  municipality  and  the  provisions  of  this
    22  section shall not apply.
    23    (b)  If  the  average  fund balance percentage of such municipality is

    24  less than five percent, the board must find that such municipality is  a
    25  fiscally  eligible  municipality.    The office of the state comptroller
    26  shall make publicly available the list of counties, cities,  towns,  and
    27  villages  that  have  an average fund balance percentage that meets such
    28  criteria in each local fiscal year. If a municipality has  not  reported
    29  to  the  office  of  the  state comptroller the information necessary to
    30  calculate its average fund balance percentage, such municipality may not
    31  be deemed a fiscally eligible municipality and the  provisions  of  this
    32  section shall not apply.
    33    3. Upon the request of a fiscally eligible municipality, by resolution
    34  of  the  governing body of such municipality with the concurrence of the

    35  chief executive of such municipality, the financial restructuring  board
    36  for  local governments may undertake a comprehensive review of the oper-
    37  ations, finances, management practices,  economic  base  and  any  other
    38  factors that in its sole discretion it deems relevant to be able to make
    39  findings  and  recommendations  on reforming and restructuring the oper-
    40  ations of the fiscally eligible municipality.  As part of such recommen-
    41  dations, the board may propose that such municipality  agree  to  fiscal
    42  accountability  measures, as determined by the board, including, but not
    43  limited to, multi-year financial planning.  It may also  identify  cost-
    44  saving measures, recommend consolidation of functions or agencies within

    45  such municipality or between such municipality and other municipalities,
    46  consistent with existing law, identify and make available, to the extent
    47  otherwise  permitted  by  law, grants and loans on such terms and condi-
    48  tions as it deems appropriate, and make such  other  recommendations  as
    49  the  board may deem just and proper but in no event shall the sum of all
    50  awards made by the board to a single fiscally eligible  municipality  be
    51  greater  than five million dollars.  If such award is a loan, it may not
    52  be for a term longer than ten years.  In the event a grant  or  loan  is
    53  made,  the board may condition such award on the fiscally eligible muni-
    54  cipality submitting a report or reports on such  actions  taken  by  the

    55  fiscally  eligible municipality pursuant to the board's recommendations,
    56  and the board shall require that the eligible  municipality  must  adopt

        S. 5865                             5                            A. 8086
 
     1  and  implement all the board's recommendations as a condition to receiv-
     2  ing an award or awards.  Before making final recommendations, the  board
     3  shall consult with the fiscally eligible municipality.  Such recommenda-
     4  tions shall not be final and binding on a fiscally eligible municipality
     5  unless it formally agrees to abide by and implement such recommendations
     6  in  which  event  such recommendations and the terms provided thereunder
     7  shall be final and binding on such municipality.

     8    4. The board may hold hearings and shall have authority to require the
     9  production of any information that it deems necessary to  undertake  its
    10  comprehensive  review.    The  board  shall post on a publicly available
    11  website all recommendations and findings made pursuant to this section.
    12    5. The board shall also be authorized to resolve an  impasse  pursuant
    13  to  subdivision  four-a of section two hundred nine of the civil service
    14  law.
    15    § 3. Section 209 of the civil service law is amended by adding  a  new
    16  subdivision 4-a to read as follows:
    17    4-a.  (a) Notwithstanding anything in subdivision four of this section
    18  to the contrary, a public employer that is a fiscally  eligible  munici-

    19  pality,  as  defined  in section 160.05 of the local finance law, and is
    20  otherwise subject to subdivision four of this section,  upon  resolution
    21  of  its governing body with the concurrence of its chief executive offi-
    22  cer, and a public employee organization subject to subdivision  four  of
    23  this  section  may, jointly, stipulate and agree that an impasse exists,
    24  at any time, with respect to collective negotiations between the parties
    25  for a collective bargaining agreement  and,  in  lieu  of  commencing  a
    26  proceeding  under  subdivision four of this section, may jointly request
    27  that the financial restructuring board  for  local  governments,  estab-
    28  lished in section 160.05 of the local finance law, resolve such impasse.

    29  A joint request pursuant to this subdivision shall be irrevocable.
    30    (b)  The  financial  restructuring  board  for local governments shall
    31  render a just and reasonable determination of the matters in dispute  by
    32  an  affirmative  vote  of a majority of the total number of its members.
    33  In arriving at such determination, it shall specify the  basis  for  its
    34  findings,  taking  into consideration, in addition to any other relevant
    35  factors, those factors set forth in subdivision six of this section.  In
    36  all matters regarding public disclosure of its proceedings and findings,
    37  it  shall be treated the same as the panel convened pursuant to subdivi-
    38  sion four of this section. It shall render a  determination  within  six

    39  months of being formally requested by the parties to convene.
    40    (c)  Each  party  before  the  financial restructuring board for local
    41  governments may be heard either in  person,  by  counsel,  or  by  other
    42  representatives,  as  they  may  respectively designate and may present,
    43  either orally or in writing, or both,  statements  of  fact,  supporting
    44  witnesses and other evidence, and argument of their respective positions
    45  with  respect  to each case.   The board shall have authority to require
    46  the production of additional evidence, either oral or written, as it may
    47  desire  from  the  parties.  All  proceedings,  meetings  and   hearings
    48  conducted by the board shall be held in the city of Albany.

    49    (d)  The  determination of the financial restructuring board for local
    50  governments with respect to the conditions of employment presented to it
    51  pursuant to this section shall be final and binding upon the parties for
    52  the period prescribed by such board, but in no event shall  such  period
    53  exceed  four  years from the termination date of any previous collective
    54  bargaining agreement or if there is no  previous  collective  bargaining
    55  agreement  then  for  a period not to exceed four years from the date of
    56  determination by the board.  Such determination shall not be subject  to

        S. 5865                             6                            A. 8086
 
     1  the approval of any local legislative body or other municipal authority,

     2  and shall only be subject to review by a court of competent jurisdiction
     3  in the manner prescribed by law.
     4    §  4.    Paragraph  (d)  of  subdivision 4 of section 209 of the civil
     5  service law, as amended by section 9 of part A of  chapter  504  of  the
     6  laws of 2009, is amended to read as follows:
     7    (d) The provisions of this subdivision shall expire [thirty-six] thir-
     8  ty-nine years from July first, nineteen hundred seventy-seven, and here-
     9  after may be renewed every four years.
    10    §  5.  Section 209 of the civil service law is amended by adding a new
    11  subdivision 6 to read as follows:
    12    6. (a) For disputes concerning an impasse pursuant to subdivision four
    13  of this section that involve a county, city, town, or village subject to

    14  section three-c of the general municipal law, a public arbitration panel
    15  shall make a determination as to whether such  county,  city,  town,  or
    16  village,  is  a public employer that is a fiscally eligible municipality
    17  as part of its analysis of the financial ability of the public  employer
    18  to pay.
    19    (b)  In  evaluating whether a public employer covered by this subdivi-
    20  sion is a fiscally eligible municipality, such public arbitration  panel
    21  shall  consider  the average full value property tax rate of such public
    22  employer and the average fund balance percentage of such public  employ-
    23  er.
    24    (i)  For  purposes of this subdivision, "full value property tax rate"

    25  shall mean the amount to be raised by tax on  real  estate  by  a  local
    26  government in a given fiscal year divided by the full valuation of taxa-
    27  ble  real  estate for that same fiscal year as reported to the office of
    28  the state comptroller.
    29    (ii) For purposes of this subdivision, "average  full  value  property
    30  tax  rate"  shall  mean the sum of the full value property tax rates for
    31  the five most recent fiscal years divided by five.
    32    (iii) For purposes of  this  subdivision,  "fund  balance  percentage"
    33  shall mean the total fund balance in the general fund of a local govern-
    34  ment  in  a given fiscal year divided by the total expenditures from the
    35  general fund for that same fiscal year as reported to the office of  the

    36  state comptroller.
    37    (iv)  For purposes of this subdivision, "average fund balance percent-
    38  age" shall mean the sum of the fund balance  percentages  for  the  five
    39  most recently completed fiscal years divided by five.
    40    (c) If the average full value property tax rate of such public employ-
    41  er  is greater than the average full value property tax rate of seventy-
    42  five percent of counties, cities, towns, and villages, with local fiscal
    43  years ending in the same calendar year as of the most recently available
    44  information, the public arbitration panel must  find  that  such  public
    45  employer  is  a  fiscally eligible municipality. The office of the state
    46  comptroller shall make publicly available the list of counties,  cities,

    47  towns,  and  villages  that have an average full value property tax rate
    48  that meets such criteria in each local fiscal year. If a public employer
    49  has not reported to the office of the state comptroller the  information
    50  necessary  to  calculate  its average full value property tax rate, such
    51  public employer may not be deemed a fiscally eligible  municipality  and
    52  the provisions of this subdivision shall not apply.
    53    (d)  If the average fund balance percentage of such public employer is
    54  less than five percent and the state comptroller has certified that  any
    55  additional  fund balances in funds other than the general fund available
    56  for payment of arbitration awards in each year, if  added  to  the  fund


        S. 5865                             7                            A. 8086
 
     1  balance  of  the  general fund, would not cause the average fund balance
     2  percentage of such public employer to exceed five  percent,  the  public
     3  arbitration  panel  must  find  that  such public employer is a fiscally
     4  eligible  municipality.   The office of the state comptroller shall make
     5  publicly available the list of counties,  cities,  towns,  and  villages
     6  that  have  an  average  fund  balance percentage that is less than five
     7  percent in each local fiscal year. If a public employer has not reported
     8  to the office of the state  comptroller  the  information  necessary  to
     9  calculate  its average fund balance percentage, such public employer may

    10  not be deemed a fiscally eligible municipality  and  the  provisions  of
    11  this subdivision shall not apply.
    12    (e) When such public employer has been found to be a fiscally eligible
    13  municipality,  the  public  arbitration panel shall, first and foremost,
    14  consider ability to pay by assigning a weight of seventy percent to that
    15  portion of the criterion contained within clause b of  subparagraph  (v)
    16  of  paragraph (c) of subdivision four of this section that pertains only
    17  to the public employer's ability to pay.  All other  criteria  contained
    18  in  subparagraph  (v)  of  paragraph  (c)  of  subdivision  four of this
    19  section, including that portion of clause b of subparagraph (v) of para-

    20  graph (c) of subdivision four of  this  section  that  pertains  to  the
    21  interest and welfare of the public, shall constitute an aggregate weight
    22  of  thirty  percent.  Additionally,  with  respect to the total monetary
    23  value of any determination, the  panel  must  recognize  and  take  into
    24  account  in  its determination the constraints, obligations and require-
    25  ments imposed by the real property tax cap pursuant to  section  three-c
    26  of  the  general  municipal law upon the public employer involved in the
    27  dispute before the panel.
    28    (f) The provisions of this subdivision shall expire three  years  from
    29  July first, two thousand thirteen.
    30    §  6.  Severability.  If any clause, sentence, paragraph, subdivision,

    31  section or part of this article shall be adjudged by any court of compe-
    32  tent jurisdiction to be invalid, such judgment shall not affect, impair,
    33  or invalidate the remainder thereof, but shall be confined in its opera-
    34  tion to the clause, sentence, paragraph, subdivision,  section  or  part
    35  thereof  directly  involved  in  the  controversy in which such judgment
    36  shall have been rendered.
    37    § 7. This act shall take effect immediately,  provided  that  sections
    38  one,  two  and  three of this act shall take effect on the ninetieth day
    39  after it shall have become a law and sections four and five of this  act
    40  shall  be  deemed  to  have  been in full force and effect on  and after
    41  April 1, 2013; and provided, further, that sections three, four and five
    42  of this act shall apply  to  all  agreements  and  interest  arbitration

    43  determinations  that  expire  before,  on  or after April 1, 2013 except
    44  those (a) where the public employment relations board received  a  peti-
    45  tion  to  refer  the  dispute  to a public arbitration panel pursuant to
    46  subdivision 4 of section 209 of the civil service law  before  June  14,
    47  2013  or  (b)  where  the  public  employment relations board received a
    48  declaration of impasse pursuant to subdivision 4 of section 209  of  the
    49  civil  service  law  on or after April 1, 2013 but on or before June 14,
    50  2013.
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