Establishes the state fiscal oversight commission to study fiscal issues in the city of New York; allows the commission to assume the day-to-day operations of a local entity if the entity is in severe fiscal distress.
STATE OF NEW YORK
________________________________________________________________________
8401
2019-2020 Regular Sessions
IN ASSEMBLY
June 15, 2019
___________
Introduced by M. of A. FALL -- read once and referred to the Committee
on Cities
AN ACT to establish the state fiscal oversight commission to study
fiscal issues in the city of New York
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. A state commission, to be known as the state fiscal over-
2 sight commission (hereinafter "commission"), is hereby created to study
3 fiscal issues in the city of New York (hereinafter "city") including but
4 not limited to:
5 (a) the cost effectiveness of public-funded projects in the city;
6 (b) a review of the city's local fiscal reports to identify and solve
7 any potential issues;
8 (c) the use of loans offered by the state to avoid default of a
9 governmental entity of the city;
10 (d) the approval and selling of bonds issued by the city or any of its
11 political subdivisions for capital projects such as fire stations, water
12 plants, and parks; and
13 (e) any other area related to ensuring the fiscal health of the city
14 as determined by the chairperson.
15 § 2. The commission shall implement a plan whereby any governmental
16 entity of the city that the commission determines is in severe fiscal
17 distress shall be placed on a watch list. If such fiscal situation is
18 not resolved in a reasonable period as determined by the chairperson,
19 the commission may assume and run such local entity's day-to-day oper-
20 ations, including raising taxes, until local officials resolve the
21 underlying crisis.
22 § 3. The commission shall consist of six members to be appointed as
23 follows: two shall be appointed by the governor; two shall be appointed
24 by the state comptroller; one shall be appointed by the temporary presi-
25 dent of the senate; and one shall be appointed by the speaker of the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11945-02-9
A. 8401 2
1 assembly. The members of the commission shall serve at the pleasure of
2 the official making the appointment of such member. Vacancies in the
3 membership of the commission shall be filled in the manner provided for
4 original appointments. Membership on the commission shall not constitute
5 a public office. A chairperson of the commission shall be selected by
6 the governor from one of his or her two appointees.
7 § 4. The members of the commission shall receive no compensation for
8 their services, but shall be allowed their actual and necessary expenses
9 incurred in the performance of their duties pursuant to this act.
10 § 5. The commission may conduct any hearings or take any written
11 testimony as it deems necessary, and shall take all other steps neces-
12 sary to provide a thorough analysis of all issues related to the
13 provisions listed in section one of this act.
14 § 6. The commission shall issue a report on its findings no later than
15 December 31, 2020, and annually thereafter. The commission shall issue
16 its report to the governor, the state comptroller, the speaker of the
17 assembly, and the temporary president of the senate.
18 § 7. This act shall take effect immediately.