Add §1307, RPT L; add §25 & Art 2-A §26, amd §33, Gen Muni L; add §52-a, Leg L; amd Ed L, generally; amd
§§365-a & 368-a, Soc Serv L; add Art 4-C §§59 - 59-b, Exec L; add §742, amd §740, Lab L; add §190.73, Pen L;
amd §§211 & 217, R & SS L
Enacts the "New York state property taxpayers' protection act"; relates to limitations upon school district tax levies; requires the state to fund certain programs mandated for municipal corporations and school districts; requires the estimated cost of mandated expenditures and appropriations within the body of the bill; relates to the streamlining of planning and reporting requirements for school districts and boards of cooperative educational services; relates to the effectiveness of additional costs to school districts; relates 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 software; relates to the oversight of school district contracts and spending; establishes a municipal cooperation program; authorizes 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.
STATE OF NEW YORK
________________________________________________________________________
9900
IN ASSEMBLY
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:
1 Section 1. This act enacts into law major components of legislation
2 which are necessary to enact the New York state property taxpayers'
3 protection act. Each component is wholly contained within a Part identi-
4 fied as Parts A through E. The effective date for each particular
5 provision contained within such Part is set forth in the last section of
6 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
1 ing the effective date of the Part, which makes reference to a section
2 "of this act", when used in connection with that particular component,
3 shall be deemed to mean and refer to the corresponding section of the
4 Part in which it is found. Section four of this act sets forth the
5 general effective date of this act.
6 § 2. This act shall be known and may be cited as the "New York state
7 property taxpayers' protection act".
8 PART A
9 Section 1. Legislative intent. It is the intent of the legislature to
10 control property tax increases. This act controls property tax increases
11 by preventing school districts from increasing tax levies by more than
12 two percent each year or at the rate of inflation, whichever is less.
13 § 2. The real property tax law is amended by adding a new section 1307
14 to read as follows:
15 § 1307. Limitations upon school district tax levies. 1. Generally.
16 Notwithstanding any provision of law to the contrary, beginning with the
17 two thousand eighteen--two thousand nineteen school year, the amount of
18 taxes levied for school district purposes for any school year may not
19 exceed the amount of taxes levied for the prior school year by two
20 percent, or by the inflation factor, whichever is lower. For the
21 purposes of this section, the inflation factor shall be a percentage
22 that represents the average of the national consumer price indexes
23 determined by the United States department of labor for the twelve
24 months of the prior calendar year. On or before April first of each
25 year, the commissioner of education shall determine the applicable limi-
26 tation upon school district tax levies for the ensuing school year, and
27 shall notify each school district accordingly.
28 2. Exceptions. (a) Voter approval. The inhabitants of a school
29 district may, by a two-thirds majority vote, suspend the limitations
30 imposed by this section in the same manner as is provided by law for the
31 approval of school district expenditures. No such vote shall apply to
32 more than one school year. The question of whether to suspend the limi-
33 tations for a particular school year may be submitted to the voters no
34 more than once. When such a question is submitted to the voters, it
35 shall be presented as a separate proposition in substantially the
36 following form: "Shall the __________ school district be allowed to
37 increase its tax levy by _____ percent, despite the fact that the maxi-
38 mum increase otherwise allowed by law at this time is ____ percent?"
39 (b) Enrollment increases. If the resident public school district
40 enrollment, as defined by paragraph n of subdivision one of section
41 thirty-six hundred two of the education law, has increased, the tax
42 limit may be increased in proportion to the net percentage increase in
43 such enrollment. For this purpose, enrollment increases shall be deter-
44 mined by comparing the enrollment as of the second school year preceding
45 the school year to which the limitations are to apply, to the enrollment
46 as of the school year immediately preceding the school year to which the
47 limitations are to apply.
48 (c) Quantity increases. If the quantity of real property within the
49 school district has increased due to new construction, improvements, or
50 other physical changes, the tax limit may be increased in proportion to
51 the net percentage quantity increase. For this purpose, quantity
52 increases shall be determined by comparing the quantities as of the
53 second final assessment roll preceding the final assessment roll upon
54 which taxes are to be levied, to the quantities as of the final assess-
A. 9900 3
1 ment roll immediately preceding the final assessment roll upon which
2 taxes are to be levied. Assessors shall calculate quantity increases for
3 this purpose at the written request of the school authorities, in the
4 manner prescribed by the commissioner.
5 3. Erroneous levies. In the event a school district's actual tax levy
6 for a given school year exceeds the maximum allowable levy under this
7 section due to clerical or technical errors, the school district shall
8 place the excess amount of the levy in reserve in accordance with such
9 requirements as the state comptroller may prescribe, and shall use such
10 funds and any interest earned thereon to offset the tax levy for the
11 following school year.
12 4. Applicability. The provisions of this section shall apply to all
13 school districts other than city school districts which are subject to
14 article fifty-two of the education law.
15 § 3. This act shall take effect immediately.
16 PART B
17 Section 1. The general municipal law is amended by adding a new
18 section 25 to read as follows:
19 § 25. Funding of mandates. 1. Definitions. As used in this section,
20 the following terms shall have the following meanings unless the context
21 shall otherwise require:
22 (a) "Mandate" means:
23 (i) any state law, rule, or regulation which creates a new program or
24 requires a higher level of service for an existing program which a
25 municipal corporation is required to provide; or
26 (ii) any general law which grants a new property tax exemption or
27 increases an existing property tax exemption which the municipal corpo-
28 ration is required to provide.
29 (b) "Unfunded mandate" shall mean:
30 (i) any state law, rule, or regulation which creates a new program or
31 requires a higher level of service for an existing program which a
32 municipal corporation is required to provide and which results in a net
33 additional cost to the municipal corporation;
34 (ii) any alteration in funding provided to a municipal corporation for
35 the purpose of defraying the costs of a program which it is required to
36 provide, thereby resulting in a net additional cost to the municipal
37 corporation; or
38 (iii) any general law which grants a new property tax exemption or
39 increases an existing property tax exemption which the municipal corpo-
40 ration is required to provide, thereby resulting in a net additional
41 cost to the municipal corporation.
42 (c) "Net additional cost" means the cost or costs incurred or antic-
43 ipated to be incurred within a one year period by a local government in
44 performing or administering a mandate after subtracting therefrom any
45 revenues received or receivable by the local government on account of
46 the mandated program or service, including but not limited to:
47 (i) fees charged to the recipients of the mandated program or service;
48 (ii) state or federal aid paid specifically or categorically in
49 connection with the program or service; and
50 (iii) an offsetting savings resulting from the diminution or elimi-
51 nation of any other program or service directly attributable to the
52 performance or administration of the mandated program.
53 2. Funding of municipal corporation mandates. Notwithstanding any
54 other provision of law, no unfunded mandate shall be enacted which
A. 9900 4
1 creates an annual net additional cost to any municipal corporation in
2 excess of ten thousand dollars or an aggregate annual net additional
3 cost to all municipal corporations in excess of one million dollars.
4 3. Exemptions to the funding of municipal corporation mandates
5 requirement. (a) The state shall not be required to fund any new or
6 expanded programs if:
7 (i) The mandate is required by a court order or judgment;
8 (ii) The mandate is provided at the option of the local government
9 under a law, regulation, rule, or order that is permissive rather than
10 mandatory;
11 (iii) The mandate results from the passage of a home rule message
12 whereby a local government requests authority to implement the program
13 or service specified in the statute, and the statute imposes costs only
14 upon that local government which requests the authority to impose the
15 program or service;
16 (iv) The mandate is required by, or arises from, an executive order of
17 the governor exercising his or her emergency powers; or
18 (v) The mandate is required by statute or executive order that imple-
19 ments a federal law or regulation and results from costs mandated by the
20 federal government to be borne at the local level, unless the statute or
21 executive order results in costs which exceed the costs mandated by the
22 federal government.
23 (b) Each act establishing a mandate shall provide that the effective
24 date of any such mandate imposed on municipal corporations shall be
25 consistent with the needs of the state and municipal corporations to
26 plan implementation thereof and consistent with the availability of
27 required funds.
28 § 2. The education law is amended by adding a new section 1527-a to
29 read as follows:
30 § 1527-a. Funding of mandates imposed on school districts. 1. Defi-
31 nitions. As used in this section, the following terms shall have the
32 following meanings unless the context shall otherwise require:
33 (a) "Mandate" means:
34 (i) any state law, rule, or regulation which creates a new program or
35 requires a higher level of service for an existing program which a
36 school district organized either by special laws or pursuant to the
37 provisions of a general law, is required to provide; or
38 (ii) any general law which grants a new property tax exemption or
39 increases an existing property tax exemption which any such school
40 district is required to provide.
41 (b) "Unfunded mandate" shall mean:
42 (i) any state law, rule, or regulation which creates a new program or
43 requires a higher level of service for an existing program which any
44 such school district is required to provide and which results in a net
45 additional cost to such school district;
46 (ii) any alteration in funding provided to any such school district
47 for the purpose of defraying the costs of a program which it is required
48 to provide, thereby resulting in a net additional cost to such school
49 district; or
50 (iii) any general law which grants a new property tax exemption or
51 increases an existing property tax exemption which any such school
52 district is required to provide, thereby resulting in a net additional
53 cost to such school district.
54 (c) "Net additional cost" means the cost or costs incurred or antic-
55 ipated to be incurred within a one year period by a school district in
56 performing or administering a mandate after subtracting therefrom any
A. 9900 5
1 revenues received or receivable by the school district on account of the
2 mandated program or service, including but not limited to:
3 (i) fees charged to the recipients of the mandated program or service;
4 (ii) state or federal aid paid specifically or categorically in
5 connection with the program or service; and
6 (iii) an offsetting savings resulting from the diminution or elimi-
7 nation of any other program or service directly attributable to the
8 performance or administration of the mandated program.
9 2. Funding of school district mandates. Notwithstanding any other
10 provision of law, no unfunded mandate shall be enacted which creates an
11 annual net additional cost to any school district in excess of ten thou-
12 sand dollars or an aggregate annual net additional cost to all school
13 districts in excess of one million dollars.
14 3. Exemptions to the funding of school district mandates requirement.
15 (a) The state shall not be required to fund any new or expanded programs
16 for school districts if:
17 (i) The mandate is required by a court order or judgment;
18 (ii) The mandate is provided at the option of the school district
19 under a law, regulation, rule, or order that is permissive rather than
20 mandatory;
21 (iii) The mandate results from the passage of a home rule message
22 whereby a school district requests authority to implement the program or
23 service specified in the statute, and the statute imposes costs only
24 upon that school district which requests the authority to impose the
25 program or service;
26 (iv) The mandate is required by, or arises from, an executive order of
27 the governor exercising his or her emergency powers; or
28 (v) The mandate is required by statute or executive order that imple-
29 ments a federal law or regulation and results from costs mandated by the
30 federal government to be borne at the local level, unless the statute or
31 executive order results in costs which exceed the costs mandated by the
32 federal government.
33 (b) Each act establishing a mandate shall provide that the effective
34 date of any such mandate imposed on school districts shall be consistent
35 with the needs of the state and school districts to plan implementation
36 thereof, and also consistent with the availability of required funds.
37 § 3. The legislative law is amended by adding a new section 52-a to
38 read as follows:
39 § 52-a. Requirements with respect to bills mandating expenditures or
40 appropriations. A bill that enacts or amends any expenditures or appro-
41 priations shall state the estimated cost of such expenditure or appro-
42 priation in the body of the bill.
43 § 4. Section 215-b of the education law, as amended by chapter 301 of
44 the laws of 1996, is amended to read as follows:
45 § 215-b. Annual report by commissioner to governor and legislature.
46 The commissioner shall prepare and submit to the governor, the president
47 pro tem of the senate and the speaker of the assembly not later than
48 January first, nineteen hundred ninety-six and by the first day of Janu-
49 ary in each year thereafter, a report detailing the financial and
50 statistical outcomes of boards of cooperative educational services which
51 shall[, at minimum,] set forth with respect to the preceding school
52 year[: tuition costs for selected programs; standard per pupil cost
53 information for selected services as determined by the commissioner; and
54 aggregate expenditure data for the following categories: administration,
55 instructional services, career education, special education, rent and
56 facilities and other services; and such other information as deemed
A. 9900 6
1 appropriate] information necessary to assure the accountability of
2 boards of cooperative educational services for its fiscal and program-
3 matic resources, as set forth in regulations to be prescribed by the
4 commissioner. The format for such report shall be developed in consulta-
5 tion with school district officials and the director of the budget.
6 Such report will include changes from the year prior to the report year
7 for each such item for all boards of cooperative educational services.
8 Where applicable, such report shall be submitted electronically to the
9 department over the internet through a secure webpage as set forth in
10 regulations to be prescribed by the commissioner. This electronic report
11 shall take the place of filing paper copies of such report except in
12 circumstances where an original signature is required, then original
13 paper copies must be filed. The commissioner shall promulgate all rules
14 and regulations necessary to implement the electronic filing of such
15 report. Such report shall be distributed to all school districts and
16 boards of cooperative educational services and shall be made available
17 to all other interested parties upon request.
18 § 5. Section 305 of the education law is amended by adding two new
19 subdivisions 32 and 32-a to read as follows:
20 32. a. The commissioner shall, to the extent practicable and consist-
21 ent with federal and state law, eliminate or streamline programmatic
22 reporting, planning and application requirements imposed on school
23 districts and boards of cooperative educational services, in order to
24 eliminate or minimize the production of reports, applications and plans
25 that contain duplicative information. Where applicable, the commission-
26 er shall require that all such reports, applications and plans shall be
27 submitted electronically to the department over the internet through a
28 secure webpage. These electronic reports, applications and plans shall
29 take the place of filing paper copies of such reports, applications and
30 plans except in circumstances where an original signature is required,
31 then original paper copies must be filed. The commissioner shall
32 promulgate all rules and regulations necessary to implement the elec-
33 tronic filing of such reports, applications and plans. The commissioner
34 shall require all school districts and boards of cooperative educational
35 services to compress all districtwide planning requirements into a
36 single districtwide comprehensive plan, which at a minimum shall include
37 the components prescribed by the commissioner, including but not limited
38 to the districtwide long-range capital facilities plan, and applicable
39 current federal requirements. In the case of the city school district of
40 the city of New York, a districtwide comprehensive plan shall be devel-
41 oped for the city school district, each community school district, and
42 the districts or other administrative divisions responsible for opera-
43 tion of New York city public schools. The commissioner shall also
44 require all school districts and boards of cooperative educational
45 services to compress all building level planning requirements into a
46 single building level comprehensive plan, which at a minimum, shall
47 include the components prescribed by the commissioner and applicable
48 current federal requirements. It shall be the duty of the trustees or
49 board of education of every school district and of the chancellor and
50 each community district educational council in the city school district
51 of the city of New York and of every board of cooperative educational
52 services to assure that all components of the districtwide comprehensive
53 plan and each building level comprehensive plan are as fully integrated
54 and consistent as practicable, and that such plans are continuously
55 reviewed, reflect ongoing analyses of current teaching and learning data
56 and are updated on at least an annual basis. Notwithstanding any other
A. 9900 7
1 provision of law, rule or regulation to the contrary, any separate plan
2 requirements imposed under this chapter or any rule or regulation shall
3 be deemed to be fulfilled by inclusion of such plan in the comprehensive
4 districtwide or building level plan, provided that all required informa-
5 tion is included in the applicable comprehensive plan.
6 b. The commissioner shall require the trustees or board of education
7 of every school district and the chancellor and each community
8 district-educational council in the city school district of the city of
9 New York and every board of cooperative educational services to make its
10 districtwide comprehensive plan and each building level comprehensive
11 plan available to the public, except where such plans contain informa-
12 tion that is confidential and not subject to disclosure under state or
13 federal law. Notwithstanding any other provision of law, rule or regu-
14 lation to the contrary, any school district or board of cooperative
15 educational services that makes its comprehensive districtwide and/or
16 building level plans publicly available electronically through posting
17 on its website shall be deemed to have filed such plans with the depart-
18 ment as of the date of posting and shall not be required to separately
19 report the information contained in such plans to the department,
20 provided that such district or board of cooperative educational services
21 reports such posting to the department, with the web address at which
22 such plans are available, in the manner prescribed by the department,
23 and provided further that nothing in this subdivision shall preclude the
24 department from requiring amendment of a plan or the submission of addi-
25 tional information where it determines that the information in the
26 comprehensive plans is not current or complete or otherwise sufficient
27 to meet statutory or regulatory requirements.
28 32-a. Notwithstanding any other law, rule or regulation to the contra-
29 ry, the commissioner shall be authorized and directed to grant waivers
30 pursuant to this subdivision from any annual reporting requirements
31 imposed on school districts under this chapter, in whole or in part,
32 provided such waivers apply to all school districts and do not conflict
33 with federal requirements. Such waivers may be granted upon findings by
34 the commissioner that:
35 a. the purposes of the report can be substantially met through
36 submission of a report on a two-year, three-year or five-year basis, as
37 specified by the commissioner, taking into account other annual data
38 reporting requirements and information made publicly available by the
39 school district on an annual basis; and
40 b. the report or portion of the report being waived does not contain
41 fiscal or other data or information needed for purposes of computing
42 state or federal aid or for purposes of school or school district
43 accountability or for audit purposes.
44 § 6. Paragraph c of subdivision 4 of section 1950 of the education
45 law, as amended by chapter 378 of the laws of 2010, is amended to read
46 as follows:
47 c. Make or cause to be made surveys to determine the need for cooper-
48 ative educational services in the supervisory district and present the
49 findings of their surveys to local school authorities. Each board of
50 cooperative educational services shall prepare long range program plans,
51 including special education and career education program plans, to meet
52 the projected need for such cooperative educational services in the
53 supervisory district for the next five years as may be specified by the
54 commissioner, and shall keep on file and make available for public
55 inspection and review by the commissioner such plans and thereafter
56 annual revisions of such plans on or before the first day of December of
A. 9900 8
1 each year, provided that such plans [may] shall be incorporated into a
2 board of cooperative educational services district-wide comprehensive
3 plan. Further, where applicable, the commissioner shall require that
4 all such plans shall be submitted electronically to the department over
5 the internet through a secure webpage. This electronic plan shall take
6 the place of filing paper copies of such plan except in circumstances
7 where an original signature is required, then original paper copies must
8 be filed. The commissioner shall promulgate all rules and regulations
9 necessary to implement the electronic filing of such plan.
10 § 7. Paragraph b of subdivision 8 of section 3602 of the education
11 law, as amended by chapter 378 of the laws of 2010, is amended to read
12 as follows:
13 b. District plans of service. Any school district receiving an addi-
14 tional apportionment pursuant to subdivision ten of this section for
15 pupils in career education programs or a payment in lieu of such appor-
16 tionment or having a public excess cost aid setaside pursuant to subdi-
17 vision four of this section shall keep on file and make available for
18 public inspection and review by the commissioner and incorporate into
19 its districtwide comprehensive plan an acceptable plan of service
20 describing the student outcomes expected from implementation of the
21 proposed plan, provided that such plan may be incorporated into a school
22 district's district-wide comprehensive plan. The plan of service of a
23 school district receiving an additional apportionment pursuant to this
24 section for pupils with disabilities shall also describe how such
25 district intends to ensure that all instructional materials to be used
26 in the schools of such district will be made available in a usable
27 alternative format for each student with a disability and for each
28 student who is a qualified individual with a disability, at the same
29 time as such instructional materials are available to non-disabled
30 students, provided that such plan may incorporate by reference the
31 alternative format plans developed pursuant to subdivision twenty-nine-a
32 of section sixteen hundred four, subdivision four-a of section seventeen
33 hundred nine, subdivision seven-a of section twenty-five hundred three
34 or subdivision seven-a of section twenty-five hundred fifty-four of this
35 chapter. Such plans shall be in a form prescribed by the commissioner,
36 and except as heretofore provided, shall have the content prescribed by
37 the commissioner. Where applicable, the commissioner shall require that
38 all such plans shall be submitted electronically to the department over
39 the internet through a secure webpage. This electronic plan shall take
40 the place of filing paper copies of such plan except in circumstances
41 where an original signature is required, then original paper copies must
42 be filed. The commissioner shall promulgate all rules and regulations
43 necessary to implement the electronic filing of such plan. The commis-
44 sioner may, from time to time, require amendments of such plans as
45 deemed to be necessary and appropriate to further the educational
46 welfare of the pupils involved.
47 § 8. Within one year of the effective date of this act, the commis-
48 sioner of education shall issue a report to the governor and the legis-
49 lature detailing the reporting requirements that have been eliminated
50 under this act. Such report shall include specific statutory require-
51 ments, reports, and regulatory requirements that have been eliminated or
52 rendered null and void as a result of the provisions of this act. Where
53 applicable, the commissioner of education shall require that such report
54 shall be submitted electronically to the state education department over
55 the internet through a secure webpage. This electronic report shall take
56 the place of filing paper copies of such report except in circumstances
A. 9900 9
1 where an original signature is required, then original paper copies must
2 be filed. The commissioner of education shall promulgate all rules and
3 regulations necessary to implement the electronic filing of such report.
4 § 9. The education law is amended by adding a new section 207-b to
5 read as follows:
6 § 207-b. Effectiveness of additional costs to school districts.
7 Notwithstanding any other provision of law to the contrary, any policy,
8 rule or regulation adopted by the board of regents that creates an annu-
9 al net additional cost to any school district in excess of ten thousand
10 dollars or an aggregate annual net additional cost to all school
11 districts in excess of one million dollars to be approved by the state
12 legislature and signed into law by the governor shall not take effect
13 until the next school year after it has become a law.
14 § 10. Section 3602 of the education law is amended by adding a new
15 subdivision 27 to read as follows:
16 27. Aid for fourth and eighth grade student testing. In addition to
17 any other apportionment under this section, for the two thousand nine-
18 teen--two thousand twenty school year and thereafter, a school district
19 shall be eligible for reimbursement under the provisions of this subdi-
20 vision equal to one hundred percent of all costs incurred by such school
21 district associated with fourth and eighth grade student testing. Such
22 reimbursement shall be provided in the same manner as other reimbursable
23 aid categories.
24 § 11. This act shall take effect on the one hundred eightieth day
25 after it shall have become a law; provided, however, that:
26 1. sections one and two of this act shall take effect April 1, 2018
27 and shall apply to any general or special law imposing mandates on
28 municipal corporations or school districts enacted on or after such
29 effective date;
30 2. section three of this act shall take effect on the first of January
31 next succeeding the date on which it shall have become a law; and
32 3. section four of this act, subdivision 32 of section 305 of the
33 education law, as added by section five of this act, and sections six
34 and seven of this act shall take effect on the first of July next
35 succeeding the date on which it shall have become a law. The commis-
36 sioner of education is authorized and directed to promulgate, amend
37 and/or repeal any rule or regulation necessary for the implementation of
38 this act on its effective date on or before such effective date.
39 PART C
40 Section 1. Legislative intent. The legislature finds that Medicaid
41 waste, fraud and abuse increase for New York taxpayers statewide each
42 year. This act will continue to make Medicaid reform a top priority in
43 the hopes of saving each property taxpayer in New York state. The legis-
44 lature believes that all savings recouped from the Medicaid reforms in
45 this act should be returned to the taxpayers in the form of property tax
46 relief.
47 § 2. Section 365-a of the social services law is amended by adding a
48 new subdivision 10 to read as follows:
49 10. (a) Notwithstanding any inconsistent provision of this section or
50 of any other provision of law, the state is hereby authorized to allevi-
51 ate the county cost of medical assistance payments and to provide fiscal
52 relief to each local social services district by assuming expenditures
53 for all optional services offered by the medical assistance program in
54 the state. The state shall phase-in such fiscal relief over a five-year
A. 9900 10
1 period and any savings a local social services district realizes at the
2 end of such five-year period shall be reimbursed to the local social
3 services district and/or county to offset the cost of real property
4 taxes. Such optional services that the state shall assume the expendi-
5 tures for are those optional services provided by applicable state law.
6 Any federally mandated medical assistance services are exempt from the
7 provisions of this subdivision.
8 (b) The commissioner of health is authorized to apply for any and all
9 federal waivers required to implement the provisions of this subdivi-
10 sion.
11 § 3. Subdivision 1 of section 368-a of the social services law is
12 amended by adding a new paragraph (aa) to read as follows:
13 (aa) (i) Notwithstanding any other provision of law, the full amount
14 expended by the local social services district for medical assistance
15 fraud, waste and abuse investigations via the use of data mining soft-
16 ware shall be reimbursed by the state if the county has previously
17 purchased or intends to purchase such software. For the purposes of this
18 paragraph, "data mining software" shall mean a database application that
19 utilizes advanced data searching capabilities and statistical analyses
20 to discover patterns and correlations in the use and abuse of medical
21 assistance practices. Any county that has previously purchased such
22 software must supply adequate documentation, including any receipts,
23 that details such purchase. The state shall disperse grants, when appli-
24 cable, from the general fund for this purpose.
25 (ii) The commissioner of health may develop rules and regulations as
26 necessary to carry out the provisions of this paragraph.
27 § 4. This act shall take effect immediately.
28 PART D
29 Section 1. Legislative findings and intent. Public school districts
30 in New York state have recently experienced numerous instances of finan-
31 cial scandals. These scandals have been unprecedented in both the number
32 and diversity of financial malfeasance. Furthermore, such scandals
33 result in the diversion of hard-earned property taxpayers' money from
34 their proper use in school instruction to improper and illegal purposes
35 that do not further the school districts' essential mission of educating
36 New York children. Therefore, the legislature finds that it is neces-
37 sary to establish a new, independent state agency charged with the func-
38 tion of investigating allegations of corruption, financial improprie-
39 ties, unethical conduct, misconduct or other criminal conduct within
40 public school districts outside of New York city. In addition, the
41 legislature further finds that the current laws must be amended to
42 incorporate school district financial safeguards and establish sanctions
43 for violations of school district finance laws.
44 § 2. The education law is amended by adding a new section 2116-d to
45 read as follows:
46 § 2116-d. Persons and officials required to report cases of suspected
47 corruption, other criminal activity or conflict of interest occurring
48 within the operations of a school district. 1. The following persons and
49 officials are required to report or cause a report to be made in accord-
50 ance with this section when they discover information concerning conduct
51 which is known or should reasonably be known to involve corruption or
52 other criminal activity or conflict of interest by either a public
53 school district employee that relates to their employment or by a
54 person, persons or entities doing business with a public school district
A. 9900 11
1 with respect to their transactions with the school district, any school
2 district officer, and any school district employee.
3 2. Any person or official mandated to report cases of suspected
4 corruption, other criminal activity or conflict of interest pursuant to
5 subdivision one of this section shall immediately report the information
6 they have to the New York state inspector general for education, as
7 established in article four-B of the executive law.
8 3. Any school district which employs persons mandated to report
9 suspected incidents of corruption, other criminal activity or conflict
10 of interest pursuant to subdivision one of this section shall provide
11 such current and new employees with written information explaining the
12 reporting requirements set out in subdivision one of this section.
13 4. Any person or official required by this section to report certain
14 information as specified in this section who willfully fails to do so
15 shall be guilty of a class A misdemeanor.
16 5. Any person or official required by this section to report certain
17 information as specified in this section who knowingly and willfully
18 fails to do so shall be civilly liable for the damages proximately
19 caused by such failure.
20 6. Any person or official participating in good faith in the making of
21 a report under this section shall have immunity from any liability,
22 civil or criminal, that might otherwise result by reason of such
23 actions. For the purpose of any proceeding, civil or criminal, the good
24 faith of any such person or official required to report under this
25 section shall be presumed, provided such person or official was acting
26 in discharge of their duties and within the scope of their employment,
27 and that such liability did not result from the willful misconduct or
28 gross negligence of such person or official.
29 § 3. Subdivision 6 of section 2122 of the education law is amended to
30 read as follows:
31 6. Such treasurer shall[, whenever required by such trustees,] report
32 to [them] such trustees a detailed [statement] annual report of the
33 moneys received by him and of his disbursements, and at the annual meet-
34 ing of such district he shall render a full account of all moneys
35 received by him and from what source, and when received, and all
36 disbursements made by him and to whom and the dates of such disburse-
37 ments respectively, and the balance of moneys remaining in his hands.
38 The treasurer shall certify in such annual report that he has: reviewed
39 the annual report; that based on the treasurer's knowledge, the report
40 does not contain any untrue statement of a material fact or omit to
41 state a material fact necessary in order to make the statements made, in
42 light of the circumstances under which such statements were made, not
43 misleading; and based on such treasurer's knowledge, the financial
44 statements, and other financial information included in the report,
45 fairly present in all material respects the financial condition and
46 results of operations of the school district as of, and for, the periods
47 presented in the report.
48 § 4. Section 1720 of the education law is amended by adding a new
49 subdivision 3 to read as follows:
50 3. The treasurer of the district shall issue an annual report with a
51 full and detailed account of all moneys received by the board or such
52 treasurer, for its account and use, and of all the moneys expended
53 therefor, giving the items of expenditure in full. The treasurer shall
54 certify in such annual report that he or she has: reviewed the annual
55 report; that based on the treasurer's knowledge, the report does not
56 contain any untrue statement of a material fact or omit to state a mate-
A. 9900 12
1 rial fact necessary in order to make the statements made, in light of
2 the circumstances under which such statements were made, not misleading;
3 and based on such treasurer's knowledge, the financial statements, and
4 other financial information included in the report, fairly present in
5 all material respects the financial condition and results of operations
6 of the school district as of, and for, the periods presented in the
7 report.
8 § 5. Section 2215 of the education law is amended by adding a new
9 subdivision 18 to read as follows:
10 18. To certify in the annual report issued pursuant to either section
11 seventeen hundred twenty of this title or section twenty-one hundred
12 twenty-two of this title that he has: reviewed the annual report; that
13 based on the superintendent's knowledge, the report does not contain any
14 untrue statement of a material fact or omit to state a material fact
15 necessary in order to make the statements made, in light of the circum-
16 stances under which such statements were made, not misleading; and based
17 on such superintendent's knowledge, the financial statements, and other
18 financial information included in the report, fairly present in all
19 material respects the financial condition and results of operations of
20 the school district as of, and for, the periods presented in the report.
21 § 6. The education law is amended by adding a new section 2116-e to
22 read as follows:
23 § 2116-e. Compensation committees. 1. Every school district, except
24 those employing fewer than eight teachers, shall establish by a resol-
25 ution of the trustees or board of education a local school district
26 compensation committee to oversee and report to the trustees or board on
27 the proposed contracts of all school district bargaining units, adminis-
28 trators and superintendents.
29 2. The compensation committee shall be established no later than Janu-
30 ary first, two thousand nineteen as a committee of the trustees or
31 board, as an advisory committee, or as a committee of the whole.
32 3. The compensation committee shall consist of at least three members,
33 at least two of whom shall not be a trustee or board member. The compen-
34 sation committee members shall serve without compensation. Employees of
35 the school district are prohibited from serving on the compensation
36 committee. A member of a compensation committee shall be deemed a school
37 district officer for the purposes of sections thirty-eight hundred elev-
38 en, thirty-eight hundred twelve and thirty-eight hundred thirteen of
39 this chapter, but shall not be required to be a resident of the school
40 district.
41 4. The role of a compensation committee shall be advisory and any
42 recommendations it provides to the trustees or board under subdivision
43 five of this section shall not substitute for any required review and
44 action by the trustees or board of education.
45 5. It shall be the responsibility of the compensation committee to:
46 (a) review every contract between the district and any bargaining
47 units, employees, administrators and superintendents negotiated after
48 January first, two thousand nineteen;
49 (b) receive and review proposed contracts between the district and any
50 bargaining units, employees, administrators and superintendents prior to
51 such contracts' approval; and
52 (c) provide recommendations to the trustees or board regarding the
53 salary, fringe benefits and other forms of compensation given and
54 proposed to be given to all school district employees, administrators
55 and superintendents.
A. 9900 13
1 6. Notwithstanding any provision of article seven of the public offi-
2 cers law or any other law to the contrary, a school district compen-
3 sation committee may conduct an executive session pursuant to section
4 one hundred five of the public officers law pertaining to any matter set
5 forth in paragraphs (a) and (b) of subdivision five of this section.
6 7. The commissioner is authorized to promulgate regulations with
7 respect to compensation committees as are necessary for the proper
8 performance of their duties.
9 8. As long as the chancellor of a school district in a city having a
10 population of one million or more inhabitants shall annually certify to
11 the commissioner that such district has a process for review by a
12 compensation committee of the district's contracts with any bargaining
13 units, employees, administrators and superintendents, the provisions of
14 this section shall not apply to such school district.
15 § 7. The education law is amended by adding a new section 2009-a to
16 read as follows:
17 § 2009-a. Additional requirements of notice prior to authorization of
18 school district employment contracts. Where any collective bargaining
19 agreement, employment contract or amendments to such agreement or
20 contract is to be submitted to a district meeting for a vote, the school
21 district board or trustees shall give notice, at least five weeks prior
22 to such meeting, through a districtwide mailing of the availability of
23 the agreement, contract or amendment at public libraries within the
24 district, at the school district offices and on the school district's
25 internet website, if one exists.
26 § 8. Subdivision 4 of section 1608 of the education law, as amended by
27 chapter 640 of the laws of 2008, is amended to read as follows:
28 4. Commencing with the proposed budget for the nineteen hundred nine-
29 ty-eight--ninety-nine school year, such proposed budget shall be
30 presented in three components: a program component, a capital component
31 and an administrative component which shall be separately delineated in
32 accordance with regulations of the commissioner after consultation with
33 local school district officials. The administrative component shall
34 include, but need not be limited to, office and central administrative
35 expenses, traveling expenses and all compensation, salaries and benefits
36 of all school administrators and supervisors, including business admin-
37 istrators, superintendents of schools and deputy, assistant, associate
38 or other superintendents under all existing employment contracts or
39 collective bargaining agreements and teachers under existing employment
40 contracts, any and all expenditures associated with the operation of the
41 office of trustee or board of trustees, the office of the superintendent
42 of schools, general administration, the school business office, consult-
43 ing costs not directly related to direct student services and programs,
44 planning and all other administrative activities. The program component
45 shall include, but need not be limited to, all program expenditures of
46 the school district, including the salaries and benefits of teachers and
47 any school administrators or supervisors who spend a majority of their
48 time performing teaching duties, and all transportation operating
49 expenses. The capital component shall include, but need not be limited
50 to, all transportation capital, debt service, and lease expenditures;
51 costs resulting from judgments in tax certiorari proceedings or the
52 payment of awards from court judgments, administrative orders or settled
53 or compromised claims; and all facilities costs of the school district,
54 including facilities lease expenditures, the annual debt service and
55 total debt for all facilities financed by bonds and notes of the school
56 district, and the costs of construction, acquisition, reconstruction,
A. 9900 14
1 rehabilitation or improvement of school buildings, provided that such
2 budget shall include a rental, operations and maintenance section that
3 includes base rent costs, total rent costs, operation and maintenance
4 charges, cost per square foot for each facility leased by the school
5 district, and any and all expenditures associated with custodial sala-
6 ries and benefits, service contracts, supplies, utilities, and mainte-
7 nance and repairs of school facilities. For the purposes of the develop-
8 ment of a budget for the nineteen hundred ninety-eight--ninety-nine
9 school year, the trustee or board of trustees shall separate the
10 district's program, capital and administrative costs for the nineteen
11 hundred ninety-seven--ninety-eight school year in the manner as if the
12 budget for such year had been presented in three components.
13 § 9. Subdivision 4 of section 1716 of the education law, as amended by
14 chapter 640 of the laws of 2008, is amended to read as follows:
15 4. Commencing with the proposed budget for the nineteen hundred nine-
16 ty-eight--ninety-nine school year, such proposed budget shall be
17 presented in three components: a program component, a capital component
18 and an administrative component which shall be separately delineated in
19 accordance with regulations of the commissioner after consultation with
20 local school district officials. The administrative component shall
21 include, but need not be limited to, office and central administrative
22 expenses, traveling expenses and all compensation, salaries and benefits
23 of all school administrators and supervisors, including business admin-
24 istrators, superintendents of schools and deputy, assistant, associate
25 or other superintendents under all existing employment contracts or
26 collective bargaining agreements, and teachers under existing employment
27 contracts any and all expenditures associated with the operation of the
28 board of education, the office of the superintendent of schools, general
29 administration, the school business office, consulting costs not direct-
30 ly related to direct student services and programs, planning and all
31 other administrative activities. The program component shall include,
32 but need not be limited to, all program expenditures of the school
33 district, including the salaries and benefits of teachers and any school
34 administrators or supervisors who spend a majority of their time
35 performing teaching duties, and all transportation operating expenses.
36 The capital component shall include, but need not be limited to, all
37 transportation capital, debt service, and lease expenditures; costs
38 resulting from judgments in tax certiorari proceedings or the payment of
39 awards from court judgments, administrative orders or settled or compro-
40 mised claims; and all facilities costs of the school district, including
41 facilities lease expenditures, the annual debt service and total debt
42 for all facilities financed by bonds and notes of the school district,
43 and the costs of construction, acquisition, reconstruction, rehabili-
44 tation or improvement of school buildings, provided that such budget
45 shall include a rental, operations and maintenance section that includes
46 base rent costs, total rent costs, operation and maintenance charges,
47 cost per square foot for each facility leased by the school district,
48 and any and all expenditures associated with custodial salaries and
49 benefits, service contracts, supplies, utilities, and maintenance and
50 repairs of school facilities. For the purposes of the development of a
51 budget for the nineteen hundred ninety-eight--ninety-nine school year,
52 the board of education shall separate the district's program, capital
53 and administrative costs for the nineteen hundred ninety-seven--ninety-
54 eight school year in the manner as if the budget for such year had been
55 presented in three components.
A. 9900 15
1 § 10. Subdivision 2 of section 1608 of the education law, as amended
2 by chapter 640 of the laws of 2008, is amended to read as follows:
3 2. Such statement shall be completed at least seven days before the
4 budget hearing at which it is to be presented and copies thereof shall
5 be prepared and made available, [upon request and] at the school
6 district offices, at any public library or free association library
7 within the district and on the school district's internet website, if
8 one exists, to residents within the district during the period of [four-
9 teen] thirty days immediately preceding the annual meeting and election
10 or special district meeting at which the budget vote will occur and at
11 such meeting or hearing. The board shall also as a part of the notice
12 required by section two thousand three of this chapter give notice of
13 the date, time and place of the budget hearing and that a copy of such
14 statement may be obtained by any resident in the district at each
15 schoolhouse in the district in which school is maintained during certain
16 designated hours on each day other than a Saturday, Sunday or holiday
17 during the [fourteen] thirty days immediately preceding such meeting.
18 The board shall include notice of the availability of such statement at
19 least once during the school year in any district-wide mailing distrib-
20 uted.
21 § 11. Subdivision 2 of section 1716 of the education law, as amended
22 by chapter 640 of the laws of 2008, is amended to read as follows:
23 2. Such statement shall be completed at least seven days before the
24 budget hearing at which it is to be presented and copies thereof shall
25 be prepared and made available, [upon request and] at the school
26 district offices, at any public library or free association library
27 within the district and on the school district's internet website, if
28 one exists, to residents within the district during the period of [four-
29 teen] thirty days immediately preceding the annual meeting and election
30 or special district meeting at which the budget vote will occur and at
31 such meeting or hearing. The board shall also as a part of the notice
32 required by section two thousand four of this chapter give notice of the
33 date, time and place of the budget hearing and that a copy of such
34 statement may be obtained by any resident in the district at each
35 schoolhouse in the district in which school is maintained during certain
36 designated hours on each day other than a Saturday, Sunday or holiday
37 during the [fourteen] thirty days immediately preceding such meeting.
38 The board shall include notice of the availability of such statement at
39 least once during the school year in any district-wide mailing distrib-
40 uted.
41 § 12. Paragraph (c) of subdivision 3 of section 2116-a of the educa-
42 tion law, as added by chapter 263 of the laws of 2005, is amended to
43 read as follows:
44 (c) Notwithstanding the provisions of subparagraph one of paragraph
45 (b) of subdivision four of section thirty-five of the general municipal
46 law, each school district shall (i) prepare a corrective action plan in
47 response to any findings contained in the annual external audit report
48 or management letter, or any final audit report issued by the state
49 comptroller, within ninety days of receipt of such report or letter, and
50 (ii) to the extent practicable, begin implementation of such corrective
51 action plan no later than the end of the next fiscal year. Each school
52 district shall notify the district residents of the availability of the
53 corrective action plan at public libraries within the district, at the
54 school district offices and on the school district's internet website,
55 if one exists. Any school district which fails to comply with the
56 required notification of availability of the corrective action plan
A. 9900 16
1 shall be subject to a civil penalty not to exceed five thousand dollars
2 upon an administrative determination by the commissioner.
3 § 13. The executive law is amended by adding a new article 4-C to read
4 as follows:
5 ARTICLE 4-C
6 OFFICE OF THE STATE INSPECTOR GENERAL FOR EDUCATION
7 Section 59. Establishment and organization.
8 59-a. Functions and duties.
9 59-b. Powers.
10 § 59. Establishment and organization. 1. There is hereby established
11 the office of the state inspector general for education. The head of the
12 office shall be the education inspector general, who shall be appointed
13 by the board of the office of the state inspector general for educa-
14 tion. Such office shall be independent of the department of education
15 and of any other office, agency, board or commission of the state or any
16 of its political subdivisions.
17 2. The education inspector general may employ and at their pleasure
18 remove such personnel as they deem necessary for the performance of the
19 office, and may fix their compensation with amounts available therefor.
20 3. There is hereby established the board of the office of the state
21 inspector general for education which shall consist of eleven members,
22 and shall have and exercise the powers and duties of the office of the
23 state inspector general for education.
24 4. The board members shall be appointed as follows:
25 (a) three members shall be appointed by the governor, one of whom
26 shall be designated by the governor as the chair of the board;
27 (b) three members shall be appointed by the temporary president of the
28 senate;
29 (c) three members shall be appointed by the speaker of the assembly;
30 (d) one member shall be appointed by the minority leader of the assem-
31 bly; and
32 (e) one member shall be appointed by the minority leader of the
33 senate.
34 5. The board members shall serve for terms of five years.
35 6. The chair of the board or any five members thereof may call a meet-
36 ing of the board.
37 7. Any vacancy occurring on the board shall be filled within sixty
38 days of its occurrence, in the same manner as the member whose vacancy
39 is being filled was appointed. A person appointed to fill a vacancy
40 occurring other than by expiration of a term of office shall be
41 appointed for the unexpired term of the member he or she succeeds.
42 8. Six members of the board shall constitute a quorum and the board
43 shall have the power to act by majority vote of the total number of
44 members of the board without vacancy.
45 9. The board members shall not receive compensation but shall be reim-
46 bursed for reasonable expenses incurred in the performance of their
47 official duties.
48 10. The board shall appoint an education inspector general who shall
49 perform the powers and duties set forth in sections fifty-nine-a and
50 fifty-nine-b of this article, and who shall serve for a term of five
51 years and may only be dismissed for cause or by a three-quarters vote of
52 the board. The board may fix the compensation of the education inspec-
53 tor general.
54 11. No board member, nor the education inspector general, shall hold
55 any elected public office or office in any political party, nor shall
A. 9900 17
1 any member be an employee of or under the supervision of any person who
2 holds such elected public office or office of a political party. No
3 member of the board shall serve in any public or political office with-
4 in five years of the member's period of service.
5 12. The education inspector general shall, prior to their appointment,
6 have had at least ten years experience in auditing or law enforcement or
7 investigation, or in prosecuting or aiding in the prosecution of fraud.
8 13. Members of the board shall, prior to their appointment, have had
9 at least three years experience in auditing or investigation of govern-
10 mental or school district operations, or in the practice of law, law
11 enforcement or in services related to development and management of
12 information technology or database creation and maintenance.
13 § 59-a. Functions and duties. The education inspector general shall
14 have the following duties and responsibilities:
15 1. to receive and investigate complaints from any source, or upon his
16 or her own initiative, concerning allegations of corruption, financial
17 improprieties, unethical conduct, misconduct or other criminal conduct
18 within public school districts outside of a city with a population of
19 one million or more;
20 2. to investigate and report on corruption and other criminal activ-
21 ity, school board election fraud, bidding irregularities and conflicts
22 of interest by public school district employees whose actions relate to
23 their employment, persons or entities doing business with a public
24 school district concerning their transactions with the school district,
25 and school board members whose actions relate to their office;
26 3. to determine with respect to such allegations whether disciplinary
27 action, civil or criminal prosecution, or further investigation by an
28 appropriate federal, state or local agency is warranted, and to assist
29 in such investigations;
30 4. to review and examine periodically the policies and procedures of
31 public school districts with regard to the prevention and detection of
32 corruption, financial improprieties, unethical conduct, misconduct,
33 other criminal conduct, school board election fraud, bidding irregulari-
34 ties and conflicts of interest or abuse;
35 5. to recommend remedial action to prevent or eliminate corruption,
36 financial improprieties, unethical conduct, misconduct, other criminal
37 conduct, school board election fraud, bidding irregularities, conflicts
38 of interest or abuse by public school district officials and employees;
39 6. to establish programs for training public school officials and
40 employees regarding the prevention and elimination of corruption, finan-
41 cial improprieties, unethical conduct, misconduct, other criminal
42 conduct, school board election fraud, bidding irregularities and
43 conflicts of interest or abuse;
44 7. to prepare an annual report that provides the results of the educa-
45 tion inspector general's findings with respect to all investigations
46 and detailed analysis of the current financial status of those school
47 districts that have been reviewed;
48 8. to include in such report any findings regarding the financial
49 practices of the school district that the education inspector general
50 believes violated, or could potentially violate, existing state rules
51 or regulations or may be of concern in that incompetence or lack of
52 training may result in financial practices that violate state rules and
53 regulations;
54 9. to issue the report to the legislature, the comptroller and the
55 department of education with each annual report posted on a public
56 internet website for at least five years from the date of issuance.
A. 9900 18
1 § 59-b. Powers. The education inspector general shall have the power
2 to:
3 1. subpoena and enforce the attendance of witnesses, including the
4 power to subpoena documents and records necessary to any investigation
5 from any public school district outside of a city with a population of
6 one million or more and from vendors who do business with such public
7 school districts;
8 2. administer oaths or affirmations and examine witnesses under oath;
9 3. require the production of any books and papers deemed relevant or
10 material to any investigation, examination or review;
11 4. notwithstanding any law to the contrary, examine and copy or remove
12 documents or records of any kind prepared, maintained or held by any
13 public school district covered by this article;
14 5. require any public school district employee to answer questions
15 concerning any matter related to the performance of his or her official
16 duties. No statement or other evidence derived therefrom may be used
17 against such officer or employee in any subsequent criminal prosecution
18 other than for perjury or contempt arising from such testimony. The
19 refusal of any officer or employee to answer questions shall be cause
20 for removal from office or employment or other appropriate penalty;
21 6. monitor the implementation by public school districts of any recom-
22 mendations made by the education inspector general;
23 7. perform any other functions that are necessary or appropriate to
24 fulfill the duties and responsibilities of the office.
25 § 14. Subparagraphs 2 and 3 of paragraph b of subdivision 2 of section
26 33 of the general municipal law, as amended by section 24 of subpart F
27 of part C of chapter 97 of the laws of 2011, are amended and a new
28 subparagraph 4 is added to read as follows:
29 (2) assessing the current financial practices of school districts,
30 BOCES and charter schools to ensure that they are consistent with estab-
31 lished standards, including whether any school district that uses a
32 risk-based or sampling methodology to determine which claims are to be
33 audited in lieu of auditing all claims has adopted a methodology that
34 provides reasonable assurance that all the claims represented in the
35 sample are proper charges against the school district; [and]
36 (3) determining that school districts, BOCES, and charter schools
37 provide for adequate protections against any fraud, theft, or profes-
38 sional misconduct[.]; and
39 (4) auditing federal and state grant program expenditures in all
40 school districts, BOCES and charter schools.
41 § 15. Paragraph d of subdivision 2 of section 33 of the general munic-
42 ipal law, as added by chapter 267 of the laws of 2005, is amended to
43 read as follows:
44 d. The office of the state comptroller shall upon making a finding of
45 misconduct refer any findings of fraud, abuse or other conduct consti-
46 tuting a crime that are uncovered during the course of an audit, as
47 appropriate, to the commissioner of education, the New York state
48 inspector general for education, the charter entity, the attorney gener-
49 al, United States attorney or district attorney having jurisdiction for
50 appropriate action, together with any documents supporting the auditors'
51 findings.
52 § 16. The labor law is amended by adding a new section 742 to read as
53 follows:
54 § 742. Prohibition; public school district employer who penalizes
55 employees because of complaints of employer malfeasance. 1. Defi-
A. 9900 19
1 nitions. As used in this section, the following terms shall have the
2 following meanings:
3 (a) "Employee" means any person who performs services for and under
4 the control and direction of any public school district outside of a
5 city with a population of one million or more for wages or other remun-
6 eration.
7 (b) "Employer" means any public school district outside of a city with
8 a population of one million or more.
9 (c) "Agent" means any individual, partnership, association, corpo-
10 ration, or group of persons acting on behalf of an employer.
11 (d) "Public body" means:
12 (1) the United States Congress, any state legislature, or any elected
13 local governmental body, or any member or employee thereof;
14 (2) the New York state inspector general for education;
15 (3) the state comptroller;
16 (4) the attorney general;
17 (5) any federal, state or local regulatory, administrative or public
18 agency or authority, or instrumentality thereof;
19 (6) any federal, state or local law enforcement agency, prosecutorial
20 office, or police or peace officer;
21 (7) any federal, state or local department of an executive branch of
22 government; or
23 (8) any division, board, bureau, office, committee or commission of
24 any of the public bodies described in subparagraph one, two, three,
25 four, five, six or seven of this paragraph.
26 (e) "Retaliatory action" means the discharge, suspension, demotion,
27 penalization or discrimination against an employee, or other adverse
28 employment action taken against an employee in the terms and conditions
29 of employment.
30 (f) "Supervisor" means any person within an employer's organization
31 who has the authority to direct and control the work performance of an
32 employee, or who has the authority to take corrective action regarding
33 fraud, criminal activity or other malfeasance to which an employee
34 submits a complaint.
35 2. Retaliatory action prohibited. Notwithstanding any other provision
36 of law, no employer shall take retaliatory action against any employee
37 because the employee does any of the following:
38 (a) discloses or threatens to disclose to a supervisor, or to a public
39 body an activity, policy or practice of the employer or agent that the
40 employee, in good faith, reasonably believes constitutes fraud, crimi-
41 nal activity or other malfeasance; or
42 (b) objects to, or refuses to participate in any activity, policy or
43 practice of the employer or agent that the employee, in good faith,
44 reasonably believes constitutes fraud, criminal activity or other
45 malfeasance.
46 3. Enforcement. An employee may seek enforcement of this section
47 pursuant to paragraph (e) of subdivision four of section seven hundred
48 forty of this article.
49 4. Relief. In any court action brought pursuant to this section it
50 shall be a defense that the personnel action was predicated upon grounds
51 other than the employee's exercise of any rights protected by this
52 section.
53 § 17. Subdivision 4 of section 740 of the labor law is amended by
54 adding a new paragraph (e) to read as follows:
55 (e) Notwithstanding the provisions of paragraphs (a) and (c) of this
56 subdivision, an employee who has been the subject of a retaliatory
A. 9900 20
1 action by an employer in violation of section seven hundred forty-two of
2 this article may institute a civil action in a court of competent juris-
3 diction for relief as set forth in subdivision five of this section
4 within two years after the alleged retaliatory personnel action was
5 taken. In addition to the relief set forth in such subdivision five, the
6 court, in its discretion, based upon a finding that the employer acted
7 in bad faith in the retaliatory action, may order the employer to termi-
8 nate the supervisor who retaliated against the employee.
9 § 18. The penal law is amended by adding a new section 190.73 to read
10 as follows:
11 § 190.73 Defrauding a public pension plan.
12 A person is guilty of defrauding a public pension plan when he or she
13 engages in a scheme constituting a systematic ongoing course of conduct
14 with intent to obtain a benefit or asset, or assist a third party to
15 obtain a benefit or asset, from a public pension plan to which he or she
16 or the third party is not otherwise entitled to pursuant to the
17 restriction of section two hundred eleven of the retirement and social
18 security law.
19 Defrauding a public pension plan is a class E felony.
20 § 19. Section 211 of the retirement and social security law is amended
21 by adding a new subdivision 9 to read as follows:
22 9. A retired person receiving a retirement allowance who is employed
23 and earning compensation in a public service position or positions with
24 the total compensation exceeding the limitations set forth in section
25 two hundred twelve of this article and such person has not obtained the
26 requisite waiver set forth in this section, as well as any person who
27 knowingly assists another person in receiving a retirement allowance
28 while receiving total compensation in a public service position or posi-
29 tions exceeding the limits of section two hundred twelve of this article
30 and not having obtained the requisite waiver, is guilty of larceny and
31 punishable as provided in the penal law.
32 § 20. Section 217 of the retirement and social security law, as added
33 by chapter 640 of the laws of 2008, is amended to read as follows:
34 § 217. Reporting requirements; school salary transparency and disclo-
35 sure. 1. A school district [and], a board of cooperative educational
36 services and a college as defined in section two of the education law
37 shall report all money earned by a retired person in their employ that
38 is in excess of the earnings limitation outlined in section two hundred
39 twelve of this article to the retirement system administered by the
40 state or any of its political subdivisions from whom such retired person
41 is collecting their retirement allowance.
42 2. A school district or a board of cooperative educational services
43 employing a retired person who is eligible to collect or is already
44 collecting a retirement allowance from a retirement system administered
45 by the state or any of its political subdivisions shall report on [an
46 annual] a monthly basis to the retirement system paying such retirement
47 allowance to such retired person [and], to the state comptroller and to
48 the New York state inspector general. This report shall consist of the
49 re-employed retiree's name, date of birth, place of employment, current
50 position and all earnings.
51 § 21. The general municipal law is amended by adding a new article
52 2-A to read as follows:
53 ARTICLE 2-A
54 MUNICIPAL COOPERATION PROGRAM
55 Section 26. Municipal cooperation program.
A. 9900 21
1 § 26. Municipal cooperation program. 1. Establishment. There are
2 hereby established a state conference on municipal cooperation and eight
3 regional commissions on municipal cooperation. The regional commissions
4 shall be as follows and shall consist of the following counties:
5 (a) Long Island - New York: Bronx, Kings, Nassau, New York, Queens,
6 Richmond and Suffolk.
7 (b) Hudson Valley: Dutchess, Orange, Putnam, Rockland, Sullivan,
8 Ulster and Westchester.
9 (c) Capital: Columbia, Greene, Albany, Schoharie, Rensselaer, Schenec-
10 tady, Montgomery, Fulton, Saratoga and Washington.
11 (d) North Country: Warren, Essex, Clinton, Franklin, Hamilton, Saint
12 Lawrence, Lewis, Oswego and Jefferson.
13 (e) Central - Mohawk Valley: Otsego, Herkimer, Oneida, Madison, Cort-
14 land, Onondaga and Cayuga.
15 (f) Southern Tier: Delaware, Broome, Chenango, Tioga, Tompkins,
16 Schuyler, Chemung, Allegany and Steuben.
17 (g) Finger Lakes: Wayne, Seneca, Yates, Ontario, Livingston and
18 Monroe.
19 (h) Western: Cattaraugus, Chautauqua, Erie, Wyoming, Genesee, Orleans
20 and Niagara.
21 2. State conference on municipal cooperation membership. (a) The
22 state conference on municipal cooperation shall consist of nine members.
23 The secretary of state shall be a member of the conference and shall
24 serve as its chair. The vice chair of each regional commission shall
25 serve as a member of the state conference on municipal cooperation.
26 (b) The state conference shall allocate funds pursuant to this section
27 to each regional commission. The state conference shall promulgate any
28 rules and regulations necessary to implement the provisions of this
29 section; however such rules and regulations, and any changes thereto
30 shall not take effect until approved by a majority vote of the governor,
31 temporary president of the senate, speaker of the assembly, minority
32 leader of the senate and minority leader of the assembly.
33 3. Regional commissions membership. (a) Each regional commission
34 shall consist of nine members, appointed as follows:
35 (i) two members shall be appointed by the governor, one of whom shall
36 be the chair of the regional commission and the other shall serve as
37 vice chair;
38 (ii) two members shall be appointed by the temporary president of the
39 senate;
40 (iii) two members shall be appointed by the speaker of the assembly;
41 (iv) one member shall be appointed by the minority leader of the
42 senate;
43 (v) one member shall be appointed by the minority leader of the assem-
44 bly; and
45 (vi) one member shall be appointed by the state comptroller.
46 (b) Each regional commission may conduct business with a quorum of
47 members in office at the time.
48 (c) Each member of a regional commission shall serve at the pleasure
49 of his or her appointing authority.
50 (d) Members of regional commissions shall receive no compensation for
51 their service but shall be allowed their actual and necessary expenses
52 incurred in the performance of their duties.
53 (e) Every member of a regional commission shall reside within the
54 region regulated by the regional commission upon which he or she serves.
55 (f) Every member of a regional commission who is an elected official
56 shall recuse himself or herself from any meeting of the commission deal-
A. 9900 22
1 ing directly with an issue impacting upon the municipality which elected
2 such member.
3 (g) A two-thirds majority of each regional commission shall appoint an
4 executive director, who shall conduct the business of such regional
5 commission under the supervision of the regional commission. The execu-
6 tive director shall also be authorized to hire such additional staff as
7 necessary to execute the work of the regional commission. The executive
8 director may be removed only by a three-quarters vote of the members of
9 the regional commission.
10 (h) The purpose of the regional commissions shall be to:
11 (i) increase communication between local governments to discuss shared
12 services, consolidation, and the merger of local governments;
13 (ii) provide technical and financial assistance and training to local
14 governments; and
15 (iii) identify state and local laws which must be changed to achieve
16 budgetary and property tax savings through sharing arrangements.
17 (i) The regional commissions may award grants to local governments
18 which seek to work together to achieve savings. Each regional commission
19 shall provide grants in the following manner: twenty percent of all
20 funds available for the provision of grants shall be used for research
21 grants, ten percent for implementation grants, and seventy percent for
22 cooperation reward grants. A regional commission may alter this allo-
23 cation with the approval of at least two-thirds of its members.
24 4. Research grants. Each regional commission shall seek to provide the
25 assistance necessary to research the efficacy of cooperative efforts
26 between localities. If such research is beyond the scope of the commis-
27 sion, then the localities may seek a fifty percent matching grant from
28 the regional commission to hire a public, private or academic entity to
29 conduct such research. The provision of any research grant, and the
30 entity which shall conduct the research, shall be subject to approval by
31 the regional commission.
32 5. Implementation grants. Municipalities which have chosen to execute
33 the cooperative effort, shall identify costs of implementing the effort
34 and request a grant from the regional commission. Costs eligible for
35 grants may include, but shall not be limited to: early retirement or
36 resignation incentives; purchases of buildings or equipment; or hiring
37 of temporary employees to assist in consolidation. Such grants shall be
38 subject to approval by the regional commission. Implementation grants
39 shall be awarded in the following manner:
40 (a) grants to fund the consolidation of services between munici-
41 palities or the provision of services from one municipality to another.
42 Such grants shall equal fifty percent of the costs associated with such
43 merger or consolidation; and
44 (b) grants to fund mergers between municipalities. Such grants shall
45 not exceed one hundred percent of the costs associated with such merger.
46 6. Cooperation reward grants. (a) The regional commission may award
47 grants to municipalities which have elected to execute a cooperative
48 effort. Municipalities which have elected to execute a cooperative
49 effort shall identify one of the participating municipalities, which
50 shall act as a lead agent, which shall identify the savings which are
51 expected to accrue to the municipalities and request a grant in the
52 amount determined pursuant to this subdivision, and submit a report to
53 their regional commission, which shall be reviewed and adjusted accord-
54 ingly by the regional commission. At that time, the regional commission
55 may approve or reject the grant application according to applicable
56 provisions of this section and any applicable rules or regulations which
A. 9900 23
1 may be promulgated by the state conference and approved by majority vote
2 of the governor and legislative leaders.
3 (b) If approved, after the end of the first year of the consolidation,
4 the lead agent shall produce a report which shall state the savings
5 which the municipalities have experienced during the year. That report
6 shall be submitted to their regional commission, which shall validate
7 the savings which have accrued to the localities. Such savings will be
8 calculated by comparing the total amount spent for services which have
9 been consolidated with the projected cost of the services which have
10 been consolidated if the consolidation had not occurred, in the case of
11 functional consolidations; or the combined budgets of the merged munici-
12 pality, with the combined budgets of the municipalities which have been
13 merged if the merger had not occurred, in the case of mergers.
14 (c) The regional commission shall certify the validity of the savings
15 identified by the lead agent. Regional commissions may request the
16 assistance of the state comptroller to validate the savings. After such
17 savings are validated, the grant may be rewarded to the municipalities
18 in an amount determined pursuant to this subdivision.
19 (d) Such process shall be repeated each year, for a period of five
20 years in the case of functional consolidations and seven years in the
21 case of mergers.
22 (e) Cooperation reward grants shall be determined on the following
23 basis:
24 (i) grants to reward functional consolidation, i.e., consolidation of
25 services between municipalities. Such grants shall equal fifty percent
26 of the identified and validated savings associated with such consol-
27 idation; and
28 (ii) grants to reward mergers between municipalities. Such grants
29 shall not exceed one hundred percent of the identified and validated
30 savings associated with such merger.
31 7. Cooperation efforts. No provision of this section shall preclude a
32 school district or special tax district from participating in consol-
33 idation or merger efforts or activities.
34 § 22. This act shall take effect on the first of January next succeed-
35 ing the date on which it shall have become a law; provided, however,
36 that any costs to any school district pursuant to sections two through
37 twenty of this act shall be paid by the state.
38 PART E
39 Section 1. Notwithstanding the provisions of article 47 of the insur-
40 ance law, or any other provision of law to the contrary, a county shall
41 be authorized to enter into a municipal cooperative agreement authorized
42 by article 5-G of the general municipal law, with one or more school
43 districts, towns, or villages, in order to provide health care benefits
44 or establish a health care plan for their respective employees. Such
45 county shall be authorized to charge an administrative fee to such
46 school districts, towns, or villages for participation in such agree-
47 ment.
48 § 2. This act shall take effect immediately.
49 § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
50 sion, section or part of this act shall be adjudged by any court of
51 competent jurisdiction to be invalid, such judgment shall not affect,
52 impair, or invalidate the remainder thereof, but shall be confined in
53 its operation to the clause, sentence, paragraph, subdivision, section
54 or part thereof directly involved in the controversy in which such judg-
A. 9900 24
1 ment shall have been rendered. It is hereby declared to be the intent of
2 the legislature that this act would have been enacted even if such
3 invalid provisions had not been included herein.
4 § 4. This act shall take effect immediately provided, however, that
5 the applicable effective date of Parts A through E of this act shall be
6 as specifically set forth in the last section of such Parts.
