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AB1327 Text:

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

                                         1327

                              2013-2014 Regular Sessions

                                 I N  A S S E M B L Y

                                      (PREFILED)

                                    January 9, 2013
                                      ___________

       Introduced  by  M.  of  A.  ZEBROWSKI  --  read once and referred to the
         Committee on Local Governments

       AN ACT to amend the general municipal law, in relation to  enacting  the
         local government fiscal indicator system act

         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section 1. This act shall be known as  the  "local  government  fiscal
    2  indicator system act."
    3    S  2. The general municipal law is amended by adding a new article 4-A
    4  to read as follows:
    5                                  ARTICLE 4-A
    6                  LOCAL GOVERNMENT FISCAL INDICATOR SYSTEM
    7  SECTION 60. DEFINITIONS.
    8          61. REVIEW OF FINANCIAL INFORMATION; REQUEST FOR RESPONSE.
    9          62. LEVEL ONE FISCAL STRESS.
   10          63. LEVEL TWO FISCAL STRESS.
   11          64. LEVEL THREE FISCAL STRESS.
   12          65. FISCAL CRISIS.
   13          66. NEW YORK STATE BOARD OF LOCAL GOVERNMENT  DEFICIT  FINANCING
   14                AUTHORIZATION.
   15          67. INCONSISTENCY WITH OTHER LAWS.
   16          68. NOTICE OF BENCHMARKS AND ADDITIONAL CRITERIA.
   17          69. REPORTS.
   18          69-A. NO DUPLICATION.
   19    S 60. DEFINITIONS. AS USED IN THIS ARTICLE:
   20    1.  "MUNICIPALITY"  SHALL  MEAN  ANY  COUNTY,  TOWN,  VILLAGE,  SCHOOL
   21  DISTRICT OR CITY OTHER THAN A CITY HAVING A POPULATION OF ONE MILLION OR
   22  MORE.
   23    2. "COMPTROLLER" SHALL MEAN THE NEW YORK STATE COMPTROLLER.

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD00446-01-3
       A. 1327                             2

    1    3. "ANNUAL FINANCIAL REPORT" SHALL MEAN THE REPORT OF A MUNICIPALITY'S
    2  FINANCIAL CONDITION REQUIRED TO BE  MADE  ANNUALLY  TO  THE  COMPTROLLER
    3  PURSUANT TO SECTION THIRTY OF THIS CHAPTER.
    4    4.  "TENTATIVE BUDGET" SHALL MEAN THE TENTATIVE BUDGET PREPARED PURSU-
    5  ANT TO SECTION THREE HUNDRED FIFTY-FOUR OF THE COUNTY LAW,  SECTION  ONE
    6  HUNDRED  SIX  OF  THE  TOWN LAW OR SECTION 5-504 OF THE VILLAGE LAW, THE
    7  ANNUAL ESTIMATE PROPOSED PURSUANT TO SECTION SEVENTY-FIVE OF THE  SECOND
    8  CLASS  CITIES  LAW,  OR  SIMILAR  DOCUMENT PREPARED PURSUANT TO GENERAL,
    9  SPECIAL OR LOCAL LAW.
   10    5. "BENCHMARK" SHALL MEAN A STANDARD OR REFERENCE POINT  BASED  ON  AN
   11  ANALYSIS  OF  OTHER MUNICIPALITIES OF SIMILAR SIZE AND CHARACTER, STATE-
   12  WIDE OR NATIONAL TRENDS OR SIMILAR COMMONLY ACCEPTED FACTORS IN  MUNICI-
   13  PAL FINANCE.
   14    6. "MAJOR OPERATING FUND" SHALL MEAN A MUNICIPALITY'S GENERAL FUND AND
   15  ANY  OTHER  FUND  THAT  REPRESENTS  MORE  THAN TWENTY PER CENTUM OF THAT
   16  MUNICIPALITY'S TOTAL FUNDS.
   17    7. "FINANCIAL CONTROL BOARD" SHALL MEAN A PUBLIC AUTHORITY CREATED  BY
   18  THE  STATE  THAT  HAS  LEGAL CONTROL OVER A MUNICIPALITY FOR A PERIOD OF
   19  TIME IN ORDER TO IMPROVE THE FINANCIAL CONDITION.  DURING  THAT  CONTROL
   20  PERIOD,  THE  BOARD  SHALL  HAVE  POWERS  INCLUDING  BUT  NOT LIMITED TO
   21  APPROVAL OF CONTRACTS, ISSUANCE OF DEBT, APPROVAL OF FINANCIAL PLAN  AND
   22  ABILITY  TO  CONDUCT  MEETINGS.  THE BOARD SHALL REMAIN IN CONTROL UNTIL
   23  CERTAIN TRIGGERS ARE MET INDICATING THAT THE FINANCIAL CONDITION OF  THE
   24  MUNICIPALITY HAS IMPROVED.
   25    S 61. REVIEW OF FINANCIAL INFORMATION; REQUEST FOR RESPONSE. IN FURTH-
   26  ERANCE  OF THE PURPOSES OF THIS ARTICLE, THE COMPTROLLER SHALL ESTABLISH
   27  A PROGRAM FOR THE REVIEW OF ANNUAL  FINANCIAL  REPORT  DATA  OF  MUNICI-
   28  PALITIES,  AND  SUCH OTHER RELATED DATA AND INFORMATION AS MAY BE DEEMED
   29  RELEVANT. THE COMPTROLLER MAY REQUEST THE SUBMISSION BY ANY MUNICIPALITY
   30  OF ADDITIONAL INFORMATION OR DATA  FOR  THIS  PURPOSE.  THE  COMPTROLLER
   31  SHALL  CONSULT  WITH  MUNICIPAL  OFFICIALS,  AS  APPROPRIATE, DURING THE
   32  REVIEW PROCESS. BASED UPON THE COMPTROLLER'S REVIEW, THE COMPTROLLER, IN
   33  SUCH MANNER AS HE OR SHE DEEMS APPROPRIATE, MAY MAKE RECOMMENDATIONS  TO
   34  THE CHIEF EXECUTIVE OFFICER AND CHIEF FISCAL OFFICER OF THE MUNICIPALITY
   35  AS  TO ACTIONS WHICH MAY BE TAKEN BY THE MUNICIPALITY IN CONNECTION WITH
   36  THE FISCAL AFFAIRS OF THE MUNICIPALITY. THE CHIEF EXECUTIVE  OFFICER  OR
   37  CHIEF FISCAL OFFICER SHALL RESPOND TO THE COMPTROLLER'S RECOMMENDATIONS,
   38  IN  SUCH  MANNER  AS  THE  COMPTROLLER  DEEMS APPROPRIATE, BY INDICATING
   39  ACTIONS TAKEN OR PROPOSED TO BE TAKEN OR, IF THE CHIEF EXECUTIVE OFFICER
   40  OR THE CHIEF FISCAL OFFICER INDICATES THAT NO ACTION IS WARRANTED OR  IS
   41  TO BE TAKEN OR PROPOSED, BY PROVIDING AN EXPLANATION.
   42    S  62. LEVEL ONE FISCAL STRESS. 1. BASED UPON THE COMPTROLLER'S REVIEW
   43  OF ANNUAL FINANCIAL REPORT DATA, AND OTHER APPROPRIATE DATA AND INFORMA-
   44  TION PURSUANT TO SECTION SIXTY-ONE OF THIS ARTICLE, THE COMPTROLLER  MAY
   45  IDENTIFY THOSE MUNICIPALITIES THAT:
   46    A.  HAVE  FAILED  TO  TIMELY  PROVIDE  ADDITIONAL  INFORMATION OR DATA
   47  REQUESTED BY THE COMPTROLLER OR HAVE FAILED TO SUFFICIENTLY  RESPOND  TO
   48  ANY   RECOMMENDATIONS  MADE  BY  THE  COMPTROLLER  PURSUANT  TO  SECTION
   49  SIXTY-ONE OF THIS ARTICLE; OR
   50    B. THE COMPTROLLER DETERMINES THAT THE MUNICIPALITY MEETS ONE  OF  THE
   51  FOLLOWING CRITERIA:
   52    (I)  THE  MUNICIPALITY,  IN  THE  LAST  COMPLETED  FISCAL YEAR, HAD AN
   53  UNPLANNED OPERATING DEFICIT IN A MAJOR OPERATING FUND IN EXCESS  OF  ONE
   54  AND  ONE  HALF PER CENTUM OF SUCH MAJOR OPERATING FUND'S EXPENDITURES IN
   55  THE LAST COMPLETED FISCAL YEAR;
       A. 1327                             3

    1    (II) THE MUNICIPALITY, IN ITS LAST COMPLETED FISCAL YEAR, HAD AN UNAP-
    2  PROPRIATED OR UNRESERVED FUND  BALANCE  DEFICIT  IN  THE  MUNICIPALITY'S
    3  GENERAL FUND; OR
    4    (III) THE MUNICIPALITY, IN ITS LAST COMPLETED FISCAL YEAR, HAD A RATIO
    5  OF  NON-RECURRING  REVENUES USED TO FUND RECURRING EXPENDITURES TO TOTAL
    6  EXPENDITURES IN EXCESS OF A BENCHMARK DETERMINED BY THE COMPTROLLER  AND
    7  HAD  A  RATIO  OF DEBT SERVICE TO TOTAL REVENUE IN EXCESS OF A BENCHMARK
    8  DETERMINED BY THE COMPTROLLER.
    9    2. FOR EACH MUNICIPALITY IDENTIFIED PURSUANT  TO  SUBDIVISION  ONE  OF
   10  THIS  SECTION, THE COMPTROLLER SHALL NOTIFY THE CHIEF EXECUTIVE OFFICER,
   11  CHIEF FISCAL OFFICER AND GOVERNING BODY  OF  THE  AFFECTED  MUNICIPALITY
   12  THAT THE MUNICIPALITY HAS FALLEN WITHIN THE CRITERIA SET FORTH IN SUBDI-
   13  VISION  ONE OF THIS SECTION AND OF THEIR DESIGNATION OF LEVEL ONE FISCAL
   14  STRESS. THE NOTIFICATION SHALL INCLUDE DETAILS OF THE DETERMINATION  AND
   15  THE CRITERIA USED. SUCH NOTIFICATION SHALL BE MADE IN SUCH MANNER AS THE
   16  COMPTROLLER  DEEMS APPROPRIATE. WITHIN THIRTY DAYS AFTER RECEIPT OF SUCH
   17  NOTIFICATION, THE CHIEF EXECUTIVE  OFFICER  OF  THE  MUNICIPALITY  SHALL
   18  RESPOND  TO  THE  COMPTROLLER'S NOTIFICATION IN SUCH FORM AS REQUIRED BY
   19  THE COMPTROLLER, WITH A SELF-EVALUATION OF THE  FISCAL  AFFAIRS  OF  THE
   20  MUNICIPALITY,  ADDRESSING  THE  MATTERS RAISED IN THE NOTIFICATION. SUCH
   21  RESPONSE SHALL INCLUDE A CORRECTIVE ACTION PLAN  THAT  DETAILS  SPECIFIC
   22  COURSES  OF  ACTION THAT HAVE BEEN TAKEN OR WILL BE TAKEN TO ADDRESS THE
   23  FISCAL STRESS IDENTIFIED BY THE COMPTROLLER. AFTER RECEIPT AND REVIEW OF
   24  THE RESPONSE, THE COMPTROLLER MAY REQUIRE ANY LOCAL OFFICIAL OR EMPLOYEE
   25  OF THE MUNICIPALITY, OR HIS OR HER DESIGNEE, TO ATTEND A RELEVANT MUNIC-
   26  IPAL TRAINING COURSE CONDUCTED OR APPROVED BY THE COMPTROLLER. THE CHIEF
   27  EXECUTIVE OFFICER OR  CHIEF  FISCAL  OFFICER  OF  THE  MUNICIPALITY  MAY
   28  REQUEST  ASSISTANCE FROM THE COMPTROLLER IN REVIEWING THE MATTERS RAISED
   29  IN THE COMPTROLLER'S NOTIFICATION AND SHALL RECEIVE SUCH  ASSISTANCE  AS
   30  MAY  BE REASONABLY NECESSARY FROM ANY OFFICER OR EMPLOYEE OF THE MUNICI-
   31  PALITY.
   32    S 63. LEVEL TWO FISCAL STRESS. 1. BASED UPON THE COMPTROLLER'S  REVIEW
   33  OF  ANNUAL FINANCIAL REPORT DATA AND OTHER APPROPRIATE DATA AND INFORMA-
   34  TION PURSUANT TO SECTION SIXTY-ONE OF THIS ARTICLE, THE COMPTROLLER  MAY
   35  IDENTIFY THOSE MUNICIPALITIES THAT:
   36    A.  HAVE  FAILED  TO  TIMELY  PROVIDE  ADDITIONAL  INFORMATION OR DATA
   37  REQUESTED BY THE COMPTROLLER OR HAVE FAILED TO SUFFICIENTLY  RESPOND  TO
   38  ANY   RECOMMENDATIONS  MADE  BY  THE  COMPTROLLER  PURSUANT  TO  SECTION
   39  SIXTY-ONE OF THIS ARTICLE; OR
   40    B. THE COMPTROLLER DETERMINES THAT THE MUNICIPALITY MEETS THE  FOLLOW-
   41  ING  CRITERIA  THAT  THE MUNICIPALITY, IN EACH OF ITS LAST TWO COMPLETED
   42  FISCAL YEARS, HAD AT LEAST ONE OF THE FOLLOWING:
   43    (I) AN UNPLANNED OPERATING DEFICIT IN A MAJOR OPERATING FUND IN EXCESS
   44  OF ONE AND ONE HALF PER CENTUM OF SUCH MAJOR OPERATING  FUND'S  EXPENDI-
   45  TURES IN THE LAST COMPLETED FISCAL YEAR;
   46    (II)  AN  UNAPPROPRIATED  OR  UNRESERVED  FUND  BALANCE DEFICIT IN THE
   47  MUNICIPALITY'S GENERAL FUND; OR
   48    (III) A RATIO OF NON-RECURRING REVENUES USED TO FUND RECURRING EXPEND-
   49  ITURES TO TOTAL EXPENDITURES IN EXCESS OF A BENCHMARK DETERMINED BY  THE
   50  COMPTROLLER  AND  HAD A RATIO OF DEBT SERVICE TO TOTAL REVENUE IN EXCESS
   51  OF A BENCHMARK DETERMINED BY THE COMPTROLLER.
   52    2. FOR EACH MUNICIPALITY IDENTIFIED PURSUANT  TO  SUBDIVISION  ONE  OF
   53  THIS  SECTION, THE COMPTROLLER SHALL NOTIFY THE CHIEF EXECUTIVE OFFICER,
   54  CHIEF FISCAL OFFICER AND GOVERNING BODY  OF  THE  AFFECTED  MUNICIPALITY
   55  THAT THE MUNICIPALITY HAS FALLEN WITHIN THE CRITERIA SET FORTH IN SUBDI-
   56  VISION  ONE OF THIS SECTION AND OF THEIR DESIGNATION OF LEVEL TWO FISCAL
       A. 1327                             4

    1  STRESS. THE NOTIFICATION SHALL INCLUDE DETAILS OF THE DETERMINATION  AND
    2  THE CRITERIA USED. SUCH NOTIFICATION SHALL BE MADE IN SUCH MANNER AS THE
    3  COMPTROLLER DEEMS APPROPRIATE. THE CHIEF EXECUTIVE OFFICER AND GOVERNING
    4  BODY OF THE MUNICIPALITY, UPON NOTIFICATION BY THE COMPTROLLER THAT THEY
    5  HAVE  BEEN  DESIGNATED  LEVEL  TWO  FISCAL  STRESS, SHALL BE REQUIRED TO
    6  FULFILL THE FOLLOWING CONDITIONS WITHIN THE NEXT SUCCEEDING FISCAL YEAR:
    7    A. DEVELOP A CORRECTIVE ACTION PLAN THAT DETAILS SPECIFIC  COURSES  OF
    8  ACTION  THAT  HAVE  BEEN  TAKEN  OR  WILL BE TAKEN TO ADDRESS THE FISCAL
    9  STRESS IDENTIFIED BY THE COMPTROLLER; AND
   10    B. ADOPT A FOUR-YEAR FINANCIAL PLAN IN SUCH FORM AS MAY BE  PRESCRIBED
   11  BY THE COMPTROLLER.
   12    3.  THE FINANCIAL PLAN SHALL BE ADOPTED NO LATER THAN THE LAST DATE ON
   13  WHICH THE MUNICIPALITY'S BUDGET IS REQUIRED TO BE ADOPTED,  AND  MAY  BE
   14  MODIFIED  FROM  TIME TO TIME.  THE FINANCIAL PLAN SHALL PROVIDE THAT THE
   15  OPERATING FUNDS OF THE MUNICIPALITY WILL BE IN BALANCE.
   16    4. THE CHIEF FISCAL OFFICER OF THE MUNICIPALITY SHALL, UNTIL OTHERWISE
   17  NOTIFIED BY THE COMPTROLLER, PREPARE AND SUBMIT TO THE GOVERNING BODY OF
   18  THE MUNICIPALITY MONTHLY FINANCIAL REPORTS, WITHIN FIFTEEN DAYS FROM THE
   19  END OF EACH MONTH, AND PREPARE AND SUBMIT TO THE  COMPTROLLER  QUARTERLY
   20  FINANCIAL  REPORTS,  WITHIN  FIFTEEN  DAYS FROM THE END OF EACH QUARTER,
   21  BOTH IN SUCH FORM AS MAY BE PRESCRIBED BY THE COMPTROLLER. IN THE  EVENT
   22  THAT  THE COMPTROLLER PROVIDES ANY RECOMMENDATIONS REGARDING ANY REPORTS
   23  REQUIRED BY THIS SUBDIVISION, THE CHIEF EXECUTIVE OFFICER SHALL  PREPARE
   24  A  RESPONSE  TO  THE  COMPTROLLER'S RECOMMENDATIONS. SUCH RESPONSE SHALL
   25  INCLUDE, WITH RESPECT TO EACH RECOMMENDATION,  AN  ACCEPTANCE  STATEMENT
   26  FOR  ACTIONS TAKEN OR PROPOSED TO BE TAKEN AND IF NO ACTION IS WARRANTED
   27  OR IS TO BE TAKEN OR PROPOSED, A LOCAL LAW  SHALL  BE  PROPOSED  BY  THE
   28  CHIEF  EXECUTIVE  OFFICER  AND  MUST  BE  APPROVED  BY A MAJORITY OF THE
   29  GOVERNING BODY.
   30    S 64. LEVEL THREE FISCAL  STRESS.  1.  BASED  UPON  THE  COMPTROLLER'S
   31  REVIEW  OF  ANNUAL  FINANCIAL REPORT DATA AND OTHER APPROPRIATE DATA AND
   32  INFORMATION PURSUANT TO SECTION SIXTY-ONE OF  THIS  ARTICLE,  THE  COMP-
   33  TROLLER  MAY  IDENTIFY THOSE LEVEL TWO FISCAL STRESS MUNICIPALITIES THAT
   34  THE COMPTROLLER BELIEVES FIT WITHIN ANY OF  THE  FOLLOWING  CRITERIA:  A
   35  LEVEL  TWO FISCAL STRESS MUNICIPALITY, IN EACH OF ITS LAST TWO COMPLETED
   36  FISCAL YEARS, HAD AT LEAST ONE OF THE FOLLOWING:
   37    A. AN UNPLANNED OPERATING DEFICIT IN A MAJOR OPERATING FUND IN  EXCESS
   38  OF  ONE  AND  ONE HALF PER CENTUM OF THE MAJOR OPERATING FUND'S EXPENDI-
   39  TURES IN THE LAST COMPLETED FISCAL YEAR;
   40    B. AN UNAPPROPRIATED OR UNRESERVED FUND BALANCE DEFICIT IN THE MUNICI-
   41  PALITY'S GENERAL FUND; OR
   42    C. A RATIO OF NON-RECURRING REVENUES USED TO FUND  RECURRING  EXPENDI-
   43  TURES  TO  TOTAL EXPENDITURES IN EXCESS OF A BENCHMARK DETERMINED BY THE
   44  COMPTROLLER AND HAD A RATIO OF DEBT SERVICE TO TOTAL REVENUE  IN  EXCESS
   45  OF A BENCHMARK DETERMINED BY THE COMPTROLLER.
   46    2.  A. FOR EACH MUNICIPALITY IDENTIFIED PURSUANT TO SUBDIVISION ONE OF
   47  THIS SECTION, THE COMPTROLLER SHALL NOTIFY THE CHIEF EXECUTIVE  OFFICER,
   48  CHIEF  FISCAL  OFFICER  AND  GOVERNING BODY OF THE AFFECTED MUNICIPALITY
   49  THAT THE MUNICIPALITY HAS FALLEN WITHIN THE CRITERIA SET FORTH IN SUBDI-
   50  VISION ONE OF THIS SECTION AND  OF  THEIR  DESIGNATION  OF  LEVEL  THREE
   51  FISCAL  STRESS.  THE  NOTIFICATION SHALL INCLUDE DETAILS OF THE DETERMI-
   52  NATION AND THE CRITERIA USED. SUCH NOTIFICATION SHALL BE  MADE  IN  SUCH
   53  MANNER AS THE COMPTROLLER DEEMS APPROPRIATE. THE CHIEF EXECUTIVE OFFICER
   54  AND  GOVERNING  BODY OF THE MUNICIPALITY, UPON NOTIFICATION BY THE COMP-
   55  TROLLER THAT THEY HAVE BEEN DESIGNATED LEVEL THREE FISCAL STRESS,  SHALL
       A. 1327                             5

    1  BE REQUIRED TO FULFILL THE FOLLOWING CONDITIONS WITHIN THE NEXT SUCCEED-
    2  ING FISCAL YEAR:
    3    (I)  DEVELOP A CORRECTIVE ACTION PLAN THAT DETAILS SPECIFIC COURSES OF
    4  ACTION THAT HAVE BEEN TAKEN OR WILL  BE  TAKEN  TO  ADDRESS  THE  FISCAL
    5  STRESS IDENTIFIED BY THE COMPTROLLER; AND
    6    (II)  ADOPT  A  FOUR-YEAR  FINANCIAL  PLAN  IN  SUCH  FORM  AS  MAY BE
    7  PRESCRIBED BY THE COMPTROLLER.
    8    (B) (I) THE CHIEF EXECUTIVE OFFICER OR INDIVIDUAL OR BODY  RESPONSIBLE
    9  FOR THE PREPARATION OF THE TENTATIVE BUDGET, UNTIL OTHERWISE NOTIFIED BY
   10  THE COMPTROLLER, SHALL ANNUALLY SUBMIT THE TENTATIVE BUDGET FOR THE NEXT
   11  SUCCEEDING  FISCAL  YEAR  AND  THE PROPOSED FOUR-YEAR FINANCIAL PLAN FOR
   12  REVIEW BY THE COMPTROLLER. SUCH TENTATIVE BUDGET SHALL BE  SUBMITTED  TO
   13  THE  COMPTROLLER WITHIN FIVE DAYS AFTER ITS PREPARATION, BUT IN NO EVENT
   14  LATER THAN THIRTY DAYS PRIOR TO THE COMMENCEMENT OF THE NEXT  SUCCEEDING
   15  FISCAL YEAR. THE PROPOSED FOUR-YEAR FINANCIAL PLAN SHALL BE SUBMITTED AT
   16  THE  SAME  TIME  AS  THE TENTATIVE BUDGET. THE COMPTROLLER SHALL IN EACH
   17  SUCH YEAR EXAMINE SUCH TENTATIVE BUDGET  AND  FINANCIAL  PLAN  AND  MAKE
   18  RECOMMENDATIONS  THEREON  TO  THE  MUNICIPALITY,  WITHIN FIFTEEN DAYS OF
   19  RECEIPT THEREOF. SUCH RECOMMENDATIONS SHALL BE MADE AFTER REVIEW OF  THE
   20  ESTIMATES  OF  REVENUES  AND  EXPENDITURES OF SUCH MUNICIPALITY AND SUCH
   21  OTHER INFORMATION AS THE COMPTROLLER DEEMS  APPROPRIATE,  AND  SHALL  BE
   22  MADE  PRIOR  TO  THE  ADOPTION OF THE FINAL BUDGET. AT LEAST FORTY-EIGHT
   23  HOURS PRIOR TO THE ADOPTION OF THE FINAL  BUDGET,  THE  CHIEF  EXECUTIVE
   24  OFFICER  OR  INDIVIDUAL  OR  BODY RESPONSIBLE FOR THE PREPARATION OF THE
   25  TENTATIVE BUDGET OF THE MUNICIPALITY SHALL PREPARE  A  RESPONSE  TO  THE
   26  COMPTROLLER'S RECOMMENDATIONS. SUCH RESPONSE SHALL INCLUDE, WITH RESPECT
   27  TO  EACH  RECOMMENDATION,  AN  ACCEPTANCE STATEMENT FOR ACTIONS TAKEN OR
   28  PROPOSED TO BE TAKEN AND IF NO ACTION IS WARRANTED OR IS TO BE TAKEN  OR
   29  PROPOSED,  A  LOCAL LAW SHALL BE PROPOSED BY THE CHIEF EXECUTIVE OFFICER
   30  AND MUST BE APPROVED BY A MAJORITY OF  THE  GOVERNING  BODY.  THE  COMP-
   31  TROLLER'S  RECOMMENDATIONS  AND  THE  ACCEPTANCE  STATEMENT AND REJECTED
   32  RECOMMENDATIONS THERETO SHALL BE  DISTRIBUTED  TO  EACH  MEMBER  OF  THE
   33  GOVERNING BODY, FILED WITH THE CLERK OF THE MUNICIPALITY AND MADE A PART
   34  OF  THE BUDGET DOCUMENT.  WHEN SO FILED, SUCH RESPONSE SHALL BE A PUBLIC
   35  RECORD OPEN TO INSPECTION BY ANY INTERESTED PERSON. THE  RESPONSE  SHALL
   36  ALSO BE DELIVERED TO THE STATE DIVISION OF THE BUDGET, THE OFFICE OF THE
   37  STATE  COMPTROLLER,  THE  CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE
   38  AND THE CHAIR OF THE SENATE FINANCE COMMITTEE.
   39    (II) NOTWITHSTANDING THE PROVISIONS OF SECTION THIRTY OF THIS CHAPTER,
   40  THE CHIEF FISCAL OFFICER OF THE MUNICIPALITY, UNTIL  OTHERWISE  NOTIFIED
   41  BY  THE  COMPTROLLER,  SHALL SUBMIT THE ANNUAL FINANCIAL REPORT NO LATER
   42  THAN THIRTY DAYS FROM THE CLOSE OF THE FISCAL YEAR FOR WHICH THE  REPORT
   43  IS PREPARED.
   44    S  65. FISCAL CRISIS. 1. BASED UPON THE COMPTROLLER'S REVIEW OF ANNUAL
   45  FINANCIAL REPORT DATA AND OTHER APPROPRIATE DATA AND INFORMATION  PURSU-
   46  ANT TO SECTION SIXTY-ONE OF THIS ARTICLE, THE COMPTROLLER SHALL IDENTIFY
   47  THOSE MUNICIPALITIES THAT FIT WITHIN ANY OF THE FOLLOWING CRITERIA:
   48    A.  THE MUNICIPALITY HAD UNPLANNED GENERAL FUND OPERATING DEFICIT THAT
   49  EXCEEDED TWENTY PERCENT OF GENERAL FUND EXPENDITURES AS OF THE CLOSE  OF
   50  THE  LAST  PRECEDING FISCAL YEAR AND HAD AN UNAPPROPRIATED OR UNRESERVED
   51  FUND BALANCE DEFICIT THAT EXCEEDS TWENTY-FIVE PERCENT  OF  THE  EXPENDI-
   52  TURES  IN  THE GENERAL FUND AS OF THE CLOSE OF THE LAST PRECEDING FISCAL
   53  YEAR;
   54    B. TWICE, WITHIN A FIVE-YEAR PERIOD, THE MUNICIPALITY EITHER HAS  BEEN
   55  AUTHORIZED PURSUANT TO LAW TO ISSUE, AND HAS ADOPTED RESOLUTIONS AUTHOR-
   56  IZING  THE  ISSUANCE  OF, BONDS TO FINANCE A DEFICIT, AND/OR DIRECTLY OR
       A. 1327                             6

    1  INDIRECTLY UTILIZED THE PROCEEDS OF DEBT ISSUED BY  ANY  PUBLIC  BENEFIT
    2  CORPORATION OR NOT-FOR-PROFIT CORPORATION TO FUND A DEFICIT OF THE MUNI-
    3  CIPALITY;
    4    C. THE MUNICIPALITY, DUE TO CONDITIONS OF FISCAL STRESS, HAS DEFAULTED
    5  IN  THE  PAYMENT OF PRINCIPAL OR INTEREST ON ITS BONDS OR NOTES, OR SUCH
    6  DEFAULT IS IMMINENT;
    7    D. THE MUNICIPALITY, DUE TO CONDITIONS OF FISCAL  STRESS  OR  NEGATIVE
    8  CREDIT  FACTORS, IS UNABLE TO SELL ITS OBLIGATIONS IN THE GENERAL PUBLIC
    9  MARKET.
   10    2. A. FOR EACH MUNICIPALITY IDENTIFIED PURSUANT TO SUBDIVISION ONE  OF
   11  THIS  SECTION, THE COMPTROLLER SHALL NOTIFY THE CHIEF EXECUTIVE OFFICER,
   12  CHIEF FISCAL OFFICER AND GOVERNING BODY  OF  THE  AFFECTED  MUNICIPALITY
   13  THAT THE MUNICIPALITY HAS FALLEN WITHIN THE CRITERIA SET FORTH IN SUBDI-
   14  VISION  ONE  OF  THIS SECTION AND OF THEIR DESIGNATION OF FISCAL CRISIS.
   15  THE NOTIFICATION SHALL INCLUDE DETAILS  OF  THE  DETERMINATION  AND  THE
   16  CRITERIA  USED.  SUCH  NOTIFICATION  SHALL BE MADE IN SUCH MANNER AS THE
   17  COMPTROLLER DEEMS APPROPRIATE. THE CHIEF EXECUTIVE OFFICER AND GOVERNING
   18  BODY OF THE MUNICIPALITY, UPON NOTIFICATION BY THE COMPTROLLER THAT THEY
   19  HAVE BEEN DESIGNATED FISCAL CRISIS, SHALL BE  REQUIRED  TO  FULFILL  THE
   20  FOLLOWING CONDITIONS WITHIN THE NEXT SUCCEEDING FISCAL YEAR:
   21    B.  EACH  MUNICIPALITY IDENTIFIED AS FISCAL CRISIS SHALL BE SUBJECT TO
   22  THE PROVISIONS OF  THIS  SECTION,  AND  SUCH  REQUIREMENTS  OF  SECTIONS
   23  SIXTY-TWO, SIXTY-THREE AND SIXTY-FOUR OF THIS ARTICLE AS THE COMPTROLLER
   24  SHALL DEEM APPROPRIATE.
   25    3.  THE  COMPTROLLER  SHALL,  WITHIN FORTY-FIVE DAYS AFTER NOTIFYING A
   26  MUNICIPALITY OF THEIR DESIGNATION OF FISCAL  CRISIS,  INTRODUCE  PROGRAM
   27  LEGISLATION  AUTHORIZING  THE  CREATION  OF A FINANCIAL CONTROL BOARD AS
   28  DEFINED IN THIS ARTICLE FOR THE AFFECTED MUNICIPALITY.  THE  COMPTROLLER
   29  SHALL  PRESENT  A  REPORT DETAILING THE DESIGNATION OF FISCAL CRISIS FOR
   30  THE AFFECTED MUNICIPALITY AND THEIR RECOMMENDATIONS REGARDING  THE  NEED
   31  FOR  A  FINANCIAL CONTROL BOARD TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY
   32  AND TEMPORARY PRESIDENT OF THE SENATE NO LATER THAN  THIRTY  DAYS  AFTER
   33  THE  INTRODUCTION  OF  THE  PROGRAM LEGISLATION.   THE ASSEMBLY WAYS AND
   34  MEANS COMMITTEE AND SENATE FINANCE COMMITTEE SHALL HOLD A JOINT LEGISLA-
   35  TIVE HEARING ON THE AFFECTED MUNICIPALITY AND THE PROPOSED IMPOSITION OF
   36  A FINANCIAL CONTROL BOARD NO LATER THAN FOURTEEN  DAYS  AFTER  RECEIVING
   37  SUCH  REPORT  FROM THE COMPTROLLER.   THE ASSEMBLY AND SENATE SHALL HAVE
   38  EIGHT MONTHS AFTER SUCH HEARING IS HELD TO EITHER APPROVE OR  DISAPPROVE
   39  THE COMPTROLLER'S PROGRAM LEGISLATION CREATING A FINANCIAL CONTROL BOARD
   40  FOR THE AFFECTED MUNICIPALITY.
   41    4.  THE  MUNICIPALITY SHALL NOT ISSUE ANY FURTHER BONDS OR BOND ANTIC-
   42  IPATION NOTES UNLESS AND UNTIL THE AFFORDABILITY OF SUCH ADDITIONAL DEBT
   43  TO THE TAX BASE SUPPORTING THE INDEBTEDNESS HAS  BEEN  REVIEWED  BY  THE
   44  COMPTROLLER  AND  THE  TERMS OF THE DEBT IS APPROVED BY THE COMPTROLLER.
   45  THE MUNICIPALITY SHALL RESPOND IN WRITING TO  RECOMMENDATIONS,  IF  ANY,
   46  WHICH  THE COMPTROLLER MAY MAKE THEREON. THE COMPTROLLER MAY REQUIRE THE
   47  CHIEF FISCAL OFFICER OF THE MUNICIPALITY TO PREPARE  AND  SUBMIT  (A)  A
   48  PLAN  WHICH DETAILS THE PROJECTED FISCAL IMPACT OF THE PROPOSED ISSUANCE
   49  OF BONDS OR BOND ANTICIPATION NOTES INCLUDING  FINANCING  COSTS,  FUTURE
   50  DIRECT AND INDIRECT OPERATING COSTS OF, AND ANY RESULTING REVENUES FROM,
   51  THE OBJECT OR PURPOSE TO BE FINANCED; AND (B) AN ANALYSIS OF THE AFFORD-
   52  ABILITY  TO  THE  TAX  BASE  SUPPORTING THE DEBT SERVICE OR THE BONDS OR
   53  NOTES. THE COMPTROLLER MAY REQUIRE SUCH OTHER INFORMATION AS  THE  COMP-
   54  TROLLER  DEEMS  NECESSARY  TO  COMPLETE THE REVIEW OF AFFORDABILITY. THE
   55  COMPTROLLER SHALL MAKE ANY RECOMMENDATIONS  AND  APPROVE  OR  DISAPPROVE
       A. 1327                             7

    1  WITHIN  THIRTY  DAYS OF RECEIPT OF ALL INFORMATION NECESSARY TO COMPLETE
    2  THE REVIEW OF AFFORDABILITY.
    3    5.  NOTWITHSTANDING  ANY OTHER PROVISION OF LAW, NO MUNICIPALITY WHICH
    4  IS SUBJECT TO THIS SECTION SHALL FILE ANY PETITION AUTHORIZED  BY  TITLE
    5  SIX-A OF ARTICLE TWO OF THE LOCAL FINANCE LAW.
    6    S  66.  NEW  YORK  STATE  BOARD  OF LOCAL GOVERNMENT DEFICIT FINANCING
    7  AUTHORIZATION. 1. A.  THERE IS HEREBY CREATED THE NEW YORK  STATE  BOARD
    8  OF LOCAL GOVERNMENT DEFICIT FINANCING AUTHORIZATION WHICH SHALL HAVE AND
    9  EXERCISE  THE  POWERS  AND  DUTIES  SET FORTH IN SUBDIVISION TWO OF THIS
   10  SECTION.
   11    B. SUCH BOARD SHALL CONSIST OF FIVE MEMBERS AS  FOLLOWS:  ONE  OF  THE
   12  MEMBERS  SHALL BE APPOINTED BY THE GOVERNOR, WHO SHALL BE THE CHAIR, ONE
   13  OF THE MEMBERS SHALL BE APPOINTED BY  THE  TEMPORARY  PRESIDENT  OF  THE
   14  SENATE,  ONE  OF  THE  MEMBERS  SHALL BE APPOINTED BY THE SPEAKER OF THE
   15  ASSEMBLY, ONE OF THE MEMBERS SHALL BE APPOINTED BY THE  MINORITY  LEADER
   16  OF  THE SENATE AND ONE OF THE MEMBERS SHALL BE APPOINTED BY THE MINORITY
   17  LEADER OF THE ASSEMBLY. EACH MEMBER OF THE BOARD SHALL  BE  ENTITLED  TO
   18  DESIGNATE A REPRESENTATIVE TO ATTEND MEETINGS OF THE BOARD IN HIS OR HER
   19  PLACE,  AND  TO VOTE OR OTHERWISE ACT ON HIS OR HER BEHALF IN HIS OR HER
   20  ABSENCE. NOTICE OF SUCH DESIGNATION SHALL BE FURNISHED IN WRITING TO THE
   21  BOARD BY THE DESIGNATING MEMBER. A REPRESENTATIVE  SHALL  SERVE  AT  THE
   22  PLEASURE OF THE DESIGNATING MEMBER DURING THE MEMBER'S TERM OF OFFICE. A
   23  REPRESENTATIVE  SHALL  NOT  BE  AUTHORIZED TO DELEGATE ANY OF HIS OR HER
   24  DUTIES OR FUNCTIONS TO ANY OTHER PERSON.
   25    C. THE MEMBERS OF THE BOARD SHALL SERVE FOR A TERM OF ONE YEAR.
   26    D. THREE MEMBERS OF THE BOARD SHALL CONSTITUTE A QUORUM, AND THE BOARD
   27  SHALL HAVE THE POWER TO ACT BY A MAJORITY VOTE OF THE  TOTAL  NUMBER  OF
   28  MEMBERS OF THE BOARD WITHOUT A VACANCY.
   29    E.  THE  MEMBERS OF THE BOARD SHALL NOT RECEIVE COMPENSATION BUT SHALL
   30  BE REIMBURSED FOR ACTUAL AND NECESSARY EXPENSES INCURRED IN THE PERFORM-
   31  ANCE OF THEIR OFFICIAL DUTIES.
   32    2. A. THE BOARD SHALL HAVE THE POWER  TO  AUTHORIZE  THE  ISSUANCE  OF
   33  BONDS  BY  A  MUNICIPALITY TO FUND A DEFICIT EXISTING AS OF THE CLOSE OF
   34  THE LAST PRECEDING FISCAL YEAR OF THE MUNICIPALITY OR PROJECTED TO EXIST
   35  AS OF THE CLOSE OF THE CURRENT FISCAL YEAR OF THE MUNICIPALITY.
   36    B. THE BOARD SHALL ONLY BE AUTHORIZED TO  AUTHORIZE  THE  ISSUANCE  OF
   37  BONDS BY A MUNICIPALITY TO FUND SUCH A DEFICIT UPON A: (I) TWO-THIRDS OF
   38  THE  TOTAL MEMBERSHIP OF THE LEGISLATIVE BODY OF A MUNICIPALITY; OR (II)
   39  THE CHIEF EXECUTIVE OFFICER OF A MUNICIPALITY CONCURRED IN BY A MAJORITY
   40  OF THE TOTAL MEMBERSHIP OF THE LEGISLATIVE BODY FOR  SUCH  MUNICIPALITY;
   41  AND (III) A DESIGNATION OF LEVEL THREE FISCAL STRESS PURSUANT TO SECTION
   42  SIXTY-FOUR  OF  THIS  ARTICLE;  OR  (IV)  A DESIGNATION OF FISCAL CRISIS
   43  PURSUANT TO SECTION SIXTY-FIVE OF THIS ARTICLE.
   44    C. PRIOR TO THE BOARD AUTHORIZING THE ISSUANCE OF BONDS TO FUND SUCH A
   45  DEFICIT PURSUANT TO THIS SUBDIVISION, THE COMPTROLLER SHALL FIRST REVIEW
   46  AND CONFIRM THE EXISTENCE OF THE DEFICIT, AS WELL AS CERTIFY THE  AMOUNT
   47  OF THE DEFICIT. AS SOON AS PRACTICABLE AFTER THE REQUEST TO THE BOARD IS
   48  MADE,  BUT  IN NO EVENT PRIOR TO THE CLOSE OF THE CURRENT FISCAL YEAR OF
   49  THE MUNICIPALITY IN THE CASE OF A PROJECTED  DEFICIT,  THE  MUNICIPALITY
   50  SHALL PREPARE A REPORT DETAILING THE AMOUNT AND CAUSE OF THE DEFICIT AND
   51  SUBMIT  TO THE COMPTROLLER SUCH REPORT, TOGETHER WITH THE MUNICIPALITY'S
   52  INDEPENDENT AUDIT REPORT FOR ITS LAST COMPLETED FISCAL YEAR, IF ANY SUCH
   53  AUDIT REPORT HAS BEEN OR IS TO BE PREPARED, AND SUCH  OTHER  INFORMATION
   54  AS  THE COMPTROLLER MAY DEEM NECESSARY. WITHIN THIRTY DAYS AFTER RECEIV-
   55  ING ALL NECESSARY REPORTS AND INFORMATION, THE  COMPTROLLER  SHALL:  (I)
       A. 1327                             8

    1  PERFORM SUCH REVIEWS AS MAY BE NECESSARY; (II) CONFIRM THE EXISTENCE AND
    2  CERTIFY THE AMOUNT OF THE DEFICIT; AND (III) SO NOTIFY THE BOARD.
    3    D.  AFTER  THE  COMPTROLLER NOTIFIES THE BOARD OF THE EXISTENCE OF THE
    4  DEFICIT AND THE AMOUNT OF THE DEFICIT AS CERTIFIED BY  THE  COMPTROLLER,
    5  THE BOARD SHALL THEN MAKE A DETERMINATION WHETHER TO AUTHORIZE THE ISSU-
    6  ANCE  OF BONDS BY THE MUNICIPALITY TO FUND THE DEFICIT. IN MAKING SUCH A
    7  DETERMINATION, THE BOARD MAY CONSIDER SEVERAL  FACTORS,  INCLUDING,  BUT
    8  NOT LIMITED TO:
    9    (I)  THE  SIZE  OF  THE  DEFICIT AS A PERCENTAGE OF THE MUNICIPALITY'S
   10  OVERALL BUDGET;
   11    (II) THE ABILITY OF THE MUNICIPALITY TO LIQUIDATE THE DEFICIT BY MEANS
   12  OTHER THAN THROUGH THE ISSUANCE OF BONDS;
   13    (III) THE EXISTENCE OF DEFICITS IN THE PAST FIVE YEARS AND THE ACTIONS
   14  TAKEN BY THE MUNICIPALITY TO LIQUIDATE THE DEFICIT;
   15    (IV) OTHER FACTORS AS DEEMED RELEVANT BY THE BOARD.
   16    E. ONCE THE BOARD  HAS  DETERMINED  THAT  A  MUNICIPALITY  SHALL  HAVE
   17  AUTHORIZATION  FOR  THE  ISSUANCE OF BONDS PURSUANT TO THIS SECTION, THE
   18  BOARD SHALL ISSUE A WRITTEN INSTRUMENT AUTHORIZING THE  MUNICIPALITY  TO
   19  ISSUE  BONDS  IN  THE  AMOUNT  OF THE DEFICIT, AS CERTIFIED BY THE COMP-
   20  TROLLER PURSUANT TO PARAGRAPH C OF THIS SUBDIVISION. IN ANTICIPATION  OF
   21  THE ISSUANCE OF SUCH BONDS, BOND ANTICIPATION NOTES MAY BE ISSUED BY THE
   22  MUNICIPALITY.
   23    F. IT IS HEREBY DETERMINED THAT THE FINANCING OF DEFICITS AS HEREINBE-
   24  FORE  DESCRIBED  IS  AN  OBJECT OR PURPOSE OF THE MUNICIPALITY FOR WHICH
   25  INDEBTEDNESS MAY BE INCURRED, THE PERIOD OF PROBABLE USEFULNESS OF WHICH
   26  IS DETERMINED TO BE TEN YEARS, COMPUTED FROM THE DATE OF SUCH  BONDS  OR
   27  THE  DATE  OF THE FIRST BOND ANTICIPATION NOTE ISSUED IN ANTICIPATION OF
   28  THE SALE OF SUCH BONDS, WHICHEVER IS EARLIER. THE BOARD, IN  AUTHORIZING
   29  THE  ISSUANCE  OF  BONDS, MAY PRESCRIBE A MAXIMUM MATURITY OF THE BONDS,
   30  NOT TO EXCEED TEN YEARS, COMPUTED FROM THE DATE OF  SUCH  BONDS  OR  THE
   31  DATE  OF THE FIRST BOND ANTICIPATION NOTE ISSUED IN ANTICIPATION OF SUCH
   32  BONDS, WHICHEVER IS EARLIER.
   33    G. THE BOARD SHALL MAKE A DETERMINATION WHETHER TO AUTHORIZE THE ISSU-
   34  ANCE OF BONDS TO FINANCE A DEFICIT PURSUANT TO THIS  SUBDIVISION  WITHIN
   35  THIRTY  DAYS  OF  RECEIVING  THE REPORT FROM THE COMPTROLLER PURSUANT TO
   36  PARAGRAPH C OF THIS SUBDIVISION.
   37    3. A MUNICIPALITY THAT HAS REQUESTED AUTHORIZATION TO ISSUE  BONDS  TO
   38  FUND  A  DEFICIT  PURSUANT  TO  THIS SECTION MAY ISSUE BOND ANTICIPATION
   39  NOTES FOR A TERM NOT TO EXCEED ONE YEAR FOR THE PURPOSE  OF  LIQUIDATING
   40  SUCH  DEFICIT  PRIOR  TO  A  DETERMINATION BY THE BOARD TO AUTHORIZE THE
   41  ISSUANCE OF BONDS BY THE MUNICIPALITY TO FUND THE  DEFICIT  PURSUANT  TO
   42  THIS SECTION. IN THE EVENT THAT BOND ANTICIPATION NOTES ARE ISSUED IN AN
   43  AMOUNT IN EXCESS OF THE AMOUNT OF SUCH DEFICIT AS CERTIFIED BY THE COMP-
   44  TROLLER,  SUCH  MUNICIPALITY  SHALL,  FROM  FUNDS OTHER THAN PROCEEDS OF
   45  BONDS OR BOND ANTICIPATION NOTES, EITHER REDEEM SUCH  BOND  ANTICIPATION
   46  NOTES  IN THE AMOUNT BY WHICH THE AMOUNT OF SUCH BOND ANTICIPATION NOTES
   47  EXCEED THE AMOUNT OF SUCH DEFICIT AS CERTIFIED  BY  THE  COMPTROLLER  OR
   48  DEPOSIT  A SUM EQUAL TO THE AMOUNT BY WHICH SUCH BOND ANTICIPATION NOTES
   49  EXCEED THE AMOUNT OF SUCH DEFICIT AS CERTIFIED BY THE COMPTROLLER INTO A
   50  RESERVE FUND FOR THE PAYMENT OF BONDED INDEBTEDNESS ESTABLISHED PURSUANT
   51  TO SECTION SIX-H OF THIS CHAPTER. IN THE EVENT  THAT  BOND  ANTICIPATION
   52  NOTES  ARE ISSUED AND THE BOARD DOES NOT AUTHORIZE THE ISSUANCE OF BONDS
   53  TO FINANCE SUCH DEFICIT, SUCH MUNICIPALITY SHALL, FROM FUNDS OTHER  THAN
   54  THE PROCEEDS OF BONDS OR BOND ANTICIPATION NOTES, REDEEM THE FULL AMOUNT
   55  OF SUCH BOND ANTICIPATION NOTES.
       A. 1327                             9

    1    4. THE DETERMINATION OF THE BOARD WHETHER TO AUTHORIZE THE ISSUANCE OF
    2  BONDS  PURSUANT  TO  THIS  SECTION SHALL BE DEEMED FINAL AND MAY ONLY BE
    3  SUBJECT TO REVIEW BY A PROCEEDING COMMENCED UNDER ARTICLE  SEVENTY-EIGHT
    4  OF  THE  CIVIL  PRACTICE LAW AND RULES, PROVIDED THAT SUCH PROCEEDING IS
    5  COMMENCED WITHIN THIRTY DAYS OF THE NOTICE OF THE DETERMINATION GIVEN BY
    6  CERTIFIED  MAIL  RETURN  RECEIPT REQUESTED RENDERING SUCH FINAL DETERMI-
    7  NATION.
    8    5. THE COMPTROLLER SHALL PROVIDE ALL NECESSARY ASSISTANCE TO THE BOARD
    9  INCLUDING, BUT NOT LIMITED TO, STAFFING AND SUPPORT, SO THAT  THE  BOARD
   10  MAY CARRY OUT ITS POWERS AND DUTIES PURSUANT TO THIS SECTION.
   11    6.  TO FACILITATE THE MARKETING OF BONDS AUTHORIZED PURSUANT TO LAW TO
   12  BE ISSUED TO FUND A DEFICIT, THE MUNICIPALITY MAY,  NOTWITHSTANDING  ANY
   13  LIMITATION  ON THE PRIVATE SALES OF BONDS PROVIDED BY LAW AND SUBJECT TO
   14  THE APPROVAL OF THE COMPTROLLER OF THE  TERMS  AND  CONDITIONS  OF  SUCH
   15  SALES:  (A)  ARRANGE  FOR THE UNDERWRITING OF SUCH BONDS AT PRIVATE SALE
   16  THROUGH NEGOTIATED FEES OR BY SALE OF SUCH BONDS TO AN UNDERWRITER AT  A
   17  PRICE  LESS  THAN  THE SUM OF PAR VALUE OF, AND THE ACCRUED INTEREST ON,
   18  SUCH OBLIGATIONS; OR (B) ARRANGE FOR THE  PRIVATE  SALE  OF  SUCH  BONDS
   19  THROUGH  NEGOTIATED  AGREEMENT,  WITH  COMPENSATION FOR SUCH SALES TO BE
   20  PROVIDED BY NEGOTIATED AGREEMENT AND/OR  NEGOTIATED  FEE,  IF  REQUIRED.
   21  THE  COST  OF  SUCH  UNDERWRITING OR PRIVATE PLACEMENT SHALL BE DEEMED A
   22  PRELIMINARY COST FOR PURPOSES OF SECTION 11.00 OF THE LOCAL FINANCE LAW.
   23    7. EXCEPT AS PROVIDED IN THIS ARTICLE, ALL PROCEEDINGS  IN  CONNECTION
   24  WITH  THE  ISSUANCE OF BONDS OR BOND ANTICIPATION NOTES AUTHORIZED TO BE
   25  ISSUED PURSUANT TO THIS SECTION SHALL BE HAD  AND  TAKEN  IN  ACCORDANCE
   26  WITH  THE  PROVISIONS  OF THE LOCAL FINANCE LAW, PROVIDED, HOWEVER, THAT
   27  ANY RESOLUTION OR RESOLUTIONS AUTHORIZING THE  ISSUANCE  OF  SUCH  BONDS
   28  SHALL NOT BE SUBJECT TO EITHER A MANDATORY OR PERMISSIVE REFERENDUM.
   29    8.  A  MUNICIPALITY  WHICH  IS HEREAFTER AUTHORIZED PURSUANT TO LAW TO
   30  ISSUE BONDS TO FUND A DEFICIT:
   31    A. SHALL BE SUBJECT TO SUCH REQUIREMENTS OF SUBDIVISION TWO OF SECTION
   32  SIXTY-FOUR OF THIS ARTICLE AS THE COMPTROLLER DEEMS APPROPRIATE.
   33    B. IN ANY FISCAL YEAR BEGINNING WITH THE  FISCAL  YEAR  IN  WHICH  THE
   34  MUNICIPALITY ISSUES DEBT TO FUND SUCH DEFICIT, TO AND INCLUDING THE LAST
   35  FISCAL  YEAR  DURING WHICH SUCH DEBT OR ANY DEBT INCURRED TO REFUND SUCH
   36  DEBT IS OUTSTANDING, THE MUNICIPALITY SHALL NOT ISSUE ANY FURTHER  BONDS
   37  OR  BOND  ANTICIPATION  NOTES UNLESS AND UNTIL THE AFFORDABILITY OF SUCH
   38  ADDITIONAL DEBT TO THE TAX BASE SUPPORTING  THE  INDEBTEDNESS  HAS  BEEN
   39  REVIEWED  BY THE COMPTROLLER AND THE MUNICIPALITY HAS RESPONDED IN WRIT-
   40  ING TO RECOMMENDATIONS, IF  ANY,  WHICH  THE  COMPTROLLER  MAY,  IN  HIS
   41  DISCRETION,  MAKE  THEREON. THE COMPTROLLER MAY REQUIRE THE CHIEF FISCAL
   42  OFFICER OF THE MUNICIPALITY TO PREPARE AND SUBMIT:   (I)  A  PLAN  WHICH
   43  DETAILS THE PROJECTED FISCAL IMPACT OF THE PROPOSED ISSUANCE OF BONDS OR
   44  BOND ANTICIPATION NOTES INCLUDING FINANCING COSTS, AND FUTURE DIRECT AND
   45  INDIRECT OPERATING COSTS OF, AND ANY RESULTING REVENUES FROM, THE OBJECT
   46  OR  PURPOSE TO BE FINANCED; AND (II) AN ANALYSIS OF THE AFFORDABILITY TO
   47  THE TAX BASE SUPPORTING THE DEBT SERVICE ON  THE  BONDS  OR  NOTES.  THE
   48  COMPTROLLER  MAY REQUIRE SUCH OTHER INFORMATION AS THE COMPTROLLER DEEMS
   49  NECESSARY TO COMPLETE THE REVIEW OF AFFORDABILITY. THE COMPTROLLER SHALL
   50  MAKE ANY RECOMMENDATIONS WITHIN THIRTY DAYS OF RECEIPT OF  ALL  INFORMA-
   51  TION NECESSARY TO COMPLETE THE REVIEW OF AFFORDABILITY.
   52    C.  FOR  EACH  FISCAL  YEAR OCCURRING DURING THE TIME DEFICIT BONDS OR
   53  NOTES ARE OUTSTANDING, THE CHIEF FISCAL OFFICER OF THE  MUNICIPALITY  ON
   54  WHOSE  BEHALF SUCH DEFICIT BONDS OR NOTES HAVE BEEN ISSUED SHALL MONITOR
   55  ITS BUDGETS AND FOR EACH BUDGET, PREPARE A QUARTERLY  REPORT  OF  SUMMA-
   56  RIZED BUDGET DATA DEPICTING OVERALL TRENDS OF ACTUAL REVENUES AND BUDGET
       A. 1327                            10

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