Add S1307, RPT L; add S25 & Art 2-A S25, amd S33, Gen Muni L; add S52-a, Leg L; rpld S305 sub 32, amd Ed L,
generally; amd SS365-a & 368-a, Soc Serv L; add Art 4-B SS57 - 59, Exec L; add S742, amd S740, Lab L; add
S190.72, Pen L; amd S211, add S217, 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; enacts the "New York state school taxpayers' protection act; 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
________________________________________________________________________
8775--A
2007-2008 Regular Sessions
IN ASSEMBLY
May 30, 2007
___________
Introduced by M. of A. FITZPATRICK, THIELE, REILICH, SALADINO, KOLB,
COLE, McDONOUGH, BURLING, MOLINARO, RABBITT, TOBACCO, CONTE, BALL,
TEDISCO, CALHOUN -- Multi-Sponsored by -- M. of A. AMEDORE, BACALLES,
CROUCH, HAWLEY, P. LOPEZ, WALKER -- read once and referred to the
Committee on Education -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
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; to amend the education law, in relation to aid for
fourth and eighth grade student testing; and to repeal subdivision 32
of section 305 of the education law relating to a study of such
requirements (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 software (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)
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11933-04-7
A. 8775--A 2
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-
7 ing the effective date of the Part, which makes reference to a section
8 "of this act", when used in connection with that particular component,
9 shall be deemed to mean and refer to the corresponding section of the
10 Part in which it is found. Section four of this act sets forth the
11 general effective date of this act.
12 § 2. This act shall be known and may be cited as the "New York state
13 property taxpayers' protection act".
14 PART A
15 Section 1. Legislative intent. It is the intent of the legislature to
16 provide annual state school aid increases within the foundation aid
17 category, as provided in the education law, at a rate not less than the
18 inflation factor as defined in section 1307 of the real property tax
19 law, as added by section two of this act. This act controls property tax
20 increases by preventing school districts from increasing tax levies by
21 more than four percent each year or at the rate of inflation, whichever
22 is less. By providing a minimum annual state foundation aid increase at
23 the inflation rate, the legislature shall ensure property tax relief for
24 homeowners.
25 § 2. The real property tax law is amended by adding a new section 1307
26 to read as follows:
27 § 1307. Limitations upon school district tax levies. 1. Generally.
28 Notwithstanding any provision of law to the contrary, beginning with the
29 two thousand nine--two thousand ten school year, the amount of taxes
30 levied for school district purposes for any school year may not exceed
31 the amount of taxes levied for the prior school year by four percent, or
32 by the inflation factor, whichever is lower. For the purposes of this
33 section, the inflation factor shall be a percentage that represents the
34 average of the national consumer price indexes determined by the United
35 States department of labor for the twelve months of the prior calendar
36 year. On or before April first of each year, the commissioner of educa-
37 tion shall determine the applicable limitation upon school district tax
38 levies for the ensuing school year, and shall notify each school
39 district accordingly.
40 2. Exceptions. (a) Voter approval. The inhabitants of a school
41 district may, by a two-thirds majority vote, suspend the limitations
42 imposed by this section in the same manner as is provided by law for the
43 approval of school district expenditures. No such vote shall apply to
44 more than one school year. The question of whether to suspend the limi-
45 tations for a particular school year may be submitted to the voters no
46 more than once. When such a question is submitted to the voters, it
47 shall be presented as a separate proposition in substantially the
48 following form: "Shall the __________ school district be allowed to
49 increase its tax levy by _____ percent, despite the fact that the maxi-
50 mum increase otherwise allowed by law at this time is ____ percent?"
A. 8775--A 3
1 (b) Enrollment increases. If the resident public school district
2 enrollment, as defined by paragraph (n) of subdivision one of section
3 thirty-six hundred two of the education law, has increased, the tax
4 limit may be increased in proportion to the net percentage increase in
5 such enrollment. For this purpose, enrollment increases shall be deter-
6 mined by comparing the enrollment as of the second school year preceding
7 the school year to which the limitations are to apply, to the enrollment
8 as of the school year immediately preceding the school year to which the
9 limitations are to apply.
10 (c) Quantity increases. If the quantity of real property within the
11 school district has increased due to new construction, improvements, or
12 other physical changes, the tax limit may be increased in proportion to
13 the net percentage quantity increase. For this purpose, quantity
14 increases shall be determined by comparing the quantities as of the
15 second final assessment roll preceding the final assessment roll upon
16 which taxes are to be levied, to the quantities as of the final assess-
17 ment roll immediately preceding the final assessment roll upon which
18 taxes are to be levied. Assessors shall calculate quantity increases for
19 this purpose at the written request of the school authorities, in the
20 manner prescribed by the state board.
21 3. Erroneous levies. In the event a school district's actual tax levy
22 for a given school year exceeds the maximum allowable levy under this
23 section due to clerical or technical errors, the school district shall
24 place the excess amount of the levy in reserve in accordance with such
25 requirements as the state comptroller may prescribe, and shall use such
26 funds and any interest earned thereon to offset the tax levy for the
27 following school year.
28 4. Applicability. The provisions of this section shall apply to all
29 school districts other than city school districts which are subject to
30 article fifty-two of the education law.
31 § 3. This act shall take effect immediately.
32 PART B
33 Section 1. The general municipal law is amended by adding a new
34 section 25 to read as follows:
35 § 25. Funding of mandates. 1. Definitions. As used in this section,
36 the following terms shall have the following meanings unless the context
37 shall otherwise require:
38 (a) "Mandate" means:
39 (i) any state law, rule, or regulation which creates a new program or
40 requires a higher level of service for an existing program which a
41 municipal corporation is required to provide; or
42 (ii) any general law which grants a new property tax exemption or
43 increases an existing property tax exemption which the municipal corpo-
44 ration is required to provide.
45 (b) "Unfunded mandate" shall mean:
46 (i) any state law, rule, or regulation which creates a new program or
47 requires a higher level of service for an existing program which a
48 municipal corporation is required to provide and which results in a net
49 additional cost to the municipal corporation;
50 (ii) any alteration in funding provided to a municipal corporation for
51 the purpose of defraying the costs of a program which it is required to
52 provide, thereby resulting in a net additional cost to the municipal
53 corporation; or
A. 8775--A 4
1 (iii) any general law which grants a new property tax exemption or
2 increases an existing property tax exemption which the municipal corpo-
3 ration is required to provide, thereby resulting in a net additional
4 cost to the municipal corporation.
5 (c) "Net additional cost" means the cost or costs incurred or antic-
6 ipated to be incurred within a one year period by a local government in
7 performing or administering a mandate after subtracting therefrom any
8 revenues received or receivable by the local government on account of
9 the mandated program or service, including but not limited to:
10 (i) fees charged to the recipients of the mandated program or service;
11 (ii) state or federal aid paid specifically or categorically in
12 connection with the program or service; and
13 (iii) an offsetting savings resulting from the diminution or elimi-
14 nation of any other program or service directly attributable to the
15 performance or administration of the mandated program.
16 2. Funding of municipal corporation mandates. Notwithstanding any
17 other provision of law, no unfunded mandate shall be enacted which
18 creates an annual net additional cost to any municipal corporation in
19 excess of ten thousand dollars or an aggregate annual net additional
20 cost to all municipal corporations in excess of one million dollars.
21 3. Exemptions to the funding of municipal corporation mandates
22 requirement. (a) The state shall not be required to fund any new or
23 expanded programs if:
24 (i) The mandate is required by a court order or judgment;
25 (ii) The mandate is provided at the option of the local government
26 under a law, regulation, rule, or order that is permissive rather than
27 mandatory;
28 (iii) The mandate results from the passage of a home rule message
29 whereby a local government requests authority to implement the program
30 or service specified in the statute, and the statute imposes costs only
31 upon that local government which requests the authority to impose the
32 program or service;
33 (iv) The mandate is required by, or arises from, an executive order of
34 the governor exercising his or her emergency powers; or
35 (v) The mandate is required by statute or executive order that imple-
36 ments a federal law or regulation and results from costs mandated by the
37 federal government to be borne at the local level, unless the statute or
38 executive order results in costs which exceed the costs mandated by the
39 federal government.
40 (b) Each act establishing a mandate shall provide that the effective
41 date of any such mandate imposed on municipal corporations shall be
42 consistent with the needs of the state and municipal corporations to
43 plan implementation thereof and consistent with the availability of
44 required funds.
45 § 2. The education law is amended by adding a new section 1527-a to
46 read as follows:
47 § 1527-a. Funding of mandates imposed on school districts. 1. Defi-
48 nitions. As used in this section, the following terms shall have the
49 following meanings unless the context shall otherwise require:
50 (a) "Mandate" means:
51 (i) any state law, rule, or regulation which creates a new program or
52 requires a higher level of service for an existing program which a
53 school district organized either by special laws or pursuant to the
54 provisions of a general law, is required to provide; or
A. 8775--A 5
1 (ii) any general law which grants a new property tax exemption or
2 increases an existing property tax exemption which any such school
3 district is required to provide.
4 (b) "Unfunded mandate" shall mean:
5 (i) any state law, rule, or regulation which creates a new program or
6 requires a higher level of service for an existing program which any
7 such school district is required to provide and which results in a net
8 additional cost to such school district;
9 (ii) any alteration in funding provided to any such school district
10 for the purpose of defraying the costs of a program which it is required
11 to provide, thereby resulting in a net additional cost to such school
12 district; or
13 (iii) any general law which grants a new property tax exemption or
14 increases an existing property tax exemption which any such school
15 district is required to provide, thereby resulting in a net additional
16 cost to such school district.
17 (c) "Net additional cost" means the cost or costs incurred or antic-
18 ipated to be incurred within a one year period by a school district in
19 performing or administering a mandate after subtracting therefrom any
20 revenues received or receivable by the school district on account of the
21 mandated program or service, including but not limited to:
22 (i) fees charged to the recipients of the mandated program or service;
23 (ii) state or federal aid paid specifically or categorically in
24 connection with the program or service; and
25 (iii) an offsetting savings resulting from the diminution or elimi-
26 nation of any other program or service directly attributable to the
27 performance or administration of the mandated program.
28 2. Funding of school district mandates. Notwithstanding any other
29 provision of law, no unfunded mandate shall be enacted which creates an
30 annual net additional cost to any school district in excess of ten thou-
31 sand dollars or an aggregate annual net additional cost to all school
32 districts in excess of one million dollars.
33 3. Exemptions to the funding of school district mandates requirement.
34 (a) The state shall not be required to fund any new or expanded programs
35 for school districts if:
36 (i) The mandate is required by a court order or judgment;
37 (ii) The mandate is provided at the option of the school district
38 under a law, regulation, rule, or order that is permissive rather than
39 mandatory;
40 (iii) The mandate results from the passage of a home rule message
41 whereby a school district requests authority to implement the program or
42 service specified in the statute, and the statute imposes costs only
43 upon that school district which requests the authority to impose the
44 program or service;
45 (iv) The mandate is required by, or arises from, an executive order of
46 the governor exercising his or her emergency powers; or
47 (v) The mandate is required by statute or executive order that imple-
48 ments a federal law or regulation and results from costs mandated by the
49 federal government to be borne at the local level, unless the statute or
50 executive order results in costs which exceed the costs mandated by the
51 federal government.
52 (b) Each act establishing a mandate shall provide that the effective
53 date of any such mandate imposed on school districts shall be consistent
54 with the needs of the state and school districts to plan implementation
55 thereof, and also consistent with the availability of required funds.
A. 8775--A 6
1 § 3. The legislative law is amended by adding a new section 52-a to
2 read as follows:
3 § 52-a. Requirements with respect to bills mandating expenditures or
4 appropriations. A bill that enacts or amends any expenditures or appro-
5 priations shall state the estimated cost of such expenditure or appro-
6 priation in the body of the bill.
7 § 4. Section 215-b of the education law, as amended by chapter 301 of
8 the laws of 1996, is amended to read as follows:
9 § 215-b. Annual report by commissioner to governor and legislature.
10 The commissioner shall prepare and submit to the governor, the president
11 pro tem of the senate and the speaker of the assembly not later than
12 January first, nineteen hundred ninety-six and by the first day of Janu-
13 ary in each year thereafter, a report detailing the financial and
14 statistical outcomes of boards of cooperative educational services which
15 shall[, at minimum,] set forth with respect to the preceding school
16 year[: tuition costs for selected programs; standard per pupil cost
17 information for selected services as determined by the commissioner; and
18 aggregate expenditure data for the following categories: administration,
19 instructional services, career education, special education, rent and
20 facilities and other services; and such other information as deemed
21 appropriate] information necessary to assure the accountability of
22 boards of cooperative educational services for its fiscal and program-
23 matic resources, as set forth in regulations to be prescribed by the
24 commissioner. The format for such report shall be developed in consulta-
25 tion with school district officials and the director of the budget.
26 Such report will include changes from the year prior to the report year
27 for each such item for all boards of cooperative educational services.
28 Where applicable, such report shall be submitted electronically to the
29 department over the internet through a secure webpage as set forth in
30 regulations to be prescribed by the commissioner. This electronic report
31 shall take the place of filing paper copies of such report except in
32 circumstances where an original signature is required, then original
33 paper copies must be filed. The commissioner shall promulgate all rules
34 and regulations necessary to implement the electronic filing of such
35 report. Such report shall be distributed to all school districts and
36 boards of cooperative educational services and shall be made available
37 to all other interested parties upon request.
38 § 5. Subdivision 32 of section 305 of the education law is REPEALED
39 and two new subdivisions 32 and 32-a are added to read as follows:
40 32. a. The commissioner shall, to the extent practicable and consist-
41 ent with federal and state law, eliminate or streamline programmatic
42 reporting, planning and application requirements imposed on school
43 districts and boards of cooperative educational services, in order to
44 eliminate or minimize the production of reports, applications and plans
45 that contain duplicative information. Where applicable, the commission-
46 er shall require that all such reports, applications and plans shall be
47 submitted electronically to the department over the internet through a
48 secure webpage. These electronic reports, applications and plans shall
49 take the place of filing paper copies of such reports, applications and
50 plans except in circumstances where an original signature is required,
51 then original paper copies must be filed. The commissioner shall
52 promulgate all rules and regulations necessary to implement the elec-
53 tronic filing of such reports, applications and plans. The commissioner
54 shall require all school districts and boards of cooperative educational
55 services to compress all districtwide planning requirements into a
56 single districtwide comprehensive plan, which at a minimum shall include
A. 8775--A 7
1 the components prescribed by the commissioner, including but not limited
2 to the districtwide long-range capital facilities plan, and applicable
3 current federal requirements. In the case of the city school district of
4 the city of New York, a districtwide comprehensive plan shall be devel-
5 oped for the city school district, each community school district, and
6 the districts or other administrative divisions responsible for opera-
7 tion of New York city public schools. The commissioner shall also
8 require all school districts and boards of cooperative educational
9 services to compress all building level planning requirements into a
10 single building level comprehensive plan, which at a minimum, shall
11 include the components prescribed by the commissioner and applicable
12 current federal requirements. It shall be the duty of the trustees or
13 board of education of every school district and of the chancellor and
14 each community district educational council in the city school district
15 of the city of New York and of every board of cooperative educational
16 services to assure that all components of the districtwide comprehensive
17 plan and each building level comprehensive plan are as fully integrated
18 and consistent as practicable, and that such plans are continuously
19 reviewed, reflect ongoing analyses of current teaching and learning data
20 and are updated on at least an annual basis. Notwithstanding any other
21 provision of law, rule or regulation to the contrary, any separate plan
22 requirements imposed under this chapter or any rule or regulation shall
23 be deemed to be fulfilled by inclusion of such plan in the comprehensive
24 districtwide or building level plan, provided that all required informa-
25 tion is included in the applicable comprehensive plan.
26 b. The commissioner shall require the trustees or board of education
27 of every school district and the chancellor and each community
28 district-educational council in the city school district of the city of
29 New York and every board of cooperative educational services to make its
30 districtwide comprehensive plan and each building level comprehensive
31 plan available to the public, except where such plans contain informa-
32 tion that is confidential and not subject to disclosure under state or
33 federal law. Notwithstanding any other provision of law, rule or regu-
34 lation to the contrary, any school district or board of cooperative
35 services that makes its comprehensive districtwide and/or building level
36 plans publicly available electronically through posting on its website
37 shall be deemed to have filed such plans with the department as of the
38 date of posting and shall not be required to separately report the
39 information contained in such plans to the department, provided that
40 such district or board of cooperative educational services reports such
41 posting to the department, with the web address at which such plans are
42 available, in the manner prescribed by the department, and provided
43 further that nothing in this subdivision shall preclude the department
44 from requiring amendment of a plan or the submission of additional
45 information where it determines that the information in the comprehen-
46 sive plans is not current or complete or otherwise sufficient to meet
47 statutory or regulatory requirements.
48 32-a. Notwithstanding any other law, rule or regulation to the contra-
49 ry, the commissioner shall be authorized and directed to grant waivers
50 pursuant to this subdivision from any annual reporting requirements
51 imposed on school districts under this chapter, in whole or in part,
52 provided such waivers apply to all school districts and do not conflict
53 with federal requirements. Such waivers may be granted upon findings by
54 the commissioner that:
55 a. the purposes of the report can be substantially met through
56 submission of a report on a two-year, three-year or five-year basis, as
A. 8775--A 8
1 specified by the commissioner, taking into account other annual data
2 reporting requirements and information made publicly available by the
3 school district on an annual basis; and
4 b. the report or portion of the report being waived does not contain
5 fiscal or other data or information needed for purposes of computing
6 state or federal aid or for purposes of school or school district
7 accountability or for audit purposes.
8 § 6. Paragraph c of subdivision 4 of section 1950 of the education
9 law, as amended by chapter 301 of the laws of 1996, is amended to read
10 as follows:
11 c. Make or cause to be made surveys to determine the need for cooper-
12 ative educational services in the supervisory district and present the
13 findings of their surveys to local school authorities. Each board of
14 cooperative educational services shall prepare long range program plans
15 to meet the projected need for such cooperative educational services in
16 the supervisory district for the next five years as may be specified by
17 the commissioner, and shall [submit] incorporate such plans [and there-
18 after annual revisions of such plans to the commissioner on or before
19 the first day of December of each year, except that special education
20 and career education program plans, in a form specified by the commis-
21 sioner, shall be submitted every two years, no later than the date spec-
22 ified by the commissioner, and revised annually] into the board of coop-
23 erative educational services districtwide comprehensive plan. Where
24 applicable, the commissioner shall require that all such plans shall be
25 submitted electronically to the department over the internet through a
26 secure webpage. This electronic plan shall take the place of filing
27 paper copies of such plan except in circumstances where an original
28 signature is required, then original paper copies must be filed. The
29 commissioner shall promulgate all rules and regulations necessary to
30 implement the electronic filing of such plan.
31 § 7. Paragraph b of subdivision 8 of section 3602 of the education
32 law, as amended by section 16 of part B of chapter 57 of the laws of
33 2007, is amended to read as follows:
34 b. District plans of service. Any school district receiving an addi-
35 tional apportionment pursuant to subdivision ten of this section for
36 pupils in career education programs or a payment in lieu of such appor-
37 tionment or having a public excess cost aid setaside pursuant to subdi-
38 vision four of this section shall keep on file and make available for
39 public inspection and review by the commissioner and incorporate into
40 its districtwide comprehensive plan an acceptable plan of service
41 describing the student outcomes expected from implementation of the
42 proposed plan, provided that such plan may be incorporated into a school
43 district's district-wide comprehensive plan. The plan of service submit-
44 ted by a school district receiving an additional apportionment pursuant
45 to this section for pupils with disabilities shall also describe how
46 such district intends to ensure that all instructional materials to be
47 used in the schools of such district will be made available in a usable
48 alternative format for each student with a disability and for each
49 student who is a qualified individual with a disability, at the same
50 time as such instructional materials are available to non-disabled
51 students, provided that such plan may incorporate by reference the
52 alternative format plans developed pursuant to subdivision twenty-nine-a
53 of section sixteen hundred four, subdivision four-a of section seventeen
54 hundred nine, subdivision seven-a of section twenty-five hundred three
55 or subdivision seven-a of section twenty-five hundred fifty-four of this
56 chapter. Such plans shall be in a form prescribed by the commissioner,
A. 8775--A 9
1 and except as heretofore provided, shall have the content prescribed by
2 the commissioner. Where applicable, the commissioner shall require that
3 all such plans shall be submitted electronically to the department over
4 the internet through a secure webpage. This electronic plan shall take
5 the place of filing paper copies of such plan except in circumstances
6 where an original signature is required, then original paper copies must
7 be filed. The commissioner shall promulgate all rules and regulations
8 necessary to implement the electronic filing of such plan. The commis-
9 sioner may, from time to time, require amendments of such plans as
10 deemed to be necessary and appropriate to further the educational
11 welfare of the pupils involved.
12 § 8. Within one year of the effective date of this act, the commis-
13 sioner of education shall issue a report to the governor and the legis-
14 lature detailing the reporting requirements that have been eliminated
15 under this act. Such report shall include specific statutory require-
16 ments, reports, and regulatory requirements that have been eliminated or
17 rendered null and void as a result of the provisions of this act. Where
18 applicable, the commissioner of education shall require that such report
19 shall be submitted electronically to the state education department over
20 the internet through a secure webpage. This electronic report shall take
21 the place of filing paper copies of such report except in circumstances
22 where an original signature is required, then original paper copies must
23 be filed. The commissioner of education shall promulgate all rules and
24 regulations necessary to implement the electronic filing of such report.
25 § 9. The education law is amended by adding a new section 207-b to
26 read as follows:
27 § 207-b. Effectiveness of additional costs to school districts.
28 Notwithstanding any other provision of law to the contrary, any policy,
29 rule or regulation adopted by the board of regents that creates an annu-
30 al net additional cost to any school district in excess of ten thousand
31 dollars or an aggregate annual net additional cost to all school
32 districts in excess of one million dollars to be approved by the state
33 legislature and signed into law by the governor shall not take effect
34 until the next school year after it has become a law.
35 § 10. Section 3602 of the education law is amended by adding a new
36 subdivision 27 to read as follows:
37 27. Aid for fourth and eighth grade student testing. In addition to
38 any other apportionment under this section, for the two thousand nine--
39 two thousand ten school year and thereafter, a school district shall be
40 eligible for reimbursement under the provisions of this subdivision
41 equal to one hundred percent of all cost incurred by such school
42 district associated with fourth and eighth grade student testing. Such
43 reimbursement shall be provided in the same manner as other reimbursable
44 aid categories.
45 § 11. This act shall take effect on the one hundred eightieth day
46 after it shall have become a law; provided, however, that:
47 1. sections one and two of this act shall take effect April 1, 2009
48 and shall apply to any general or special law imposing mandates on
49 municipal corporations or school districts enacted on or after such
50 effective date;
51 2. section three of this act shall take effect on the first of January
52 next succeeding the date on which it shall have become a law; and
53 3. section four of this act, subdivision 32 of section 305 of the
54 education law, as repealed and added by section five of this act, and
55 sections six and seven of this act shall take effect on the first of
56 July next succeeding the date on which it shall become a law. The
A. 8775--A 10
1 commissioner of education is authorized and directed to promulgate,
2 amend and/or repeal any rule or regulation necessary for the implementa-
3 tion of this act on its effective date on or before such effective date.
4 PART C
5 Section 1. Legislative intent. The legislature finds that Medicaid
6 waste, fraud and abuse increases for New York taxpayers statewide each
7 year. This act will continue to make Medicaid reform a top priority in
8 the hopes of saving each property taxpayer in New York state. The legis-
9 lature believes that all savings recouped from the Medicaid reforms in
10 this act should be returned to the taxpayers in the form of property tax
11 relief.
12 § 2. Section 365-a of the social services law is amended by adding a
13 new subdivision 8 to read as follows:
14 8. (a) Notwithstanding any inconsistent provision of this section or
15 of any other provision of law, the state is hereby authorized to allevi-
16 ate the county cost of medical assistance payments and to provide fiscal
17 relief to each local social services district by assuming expenditures
18 for all optional services offered by the medical assistance program in
19 the state. The state shall phase-in such fiscal relief over a five-year
20 period and any savings a local social services district realizes at the
21 end of such five-year period shall be reimbursed to the local social
22 services district and/or county to offset the cost of real property
23 taxes. Such optional services that the state shall assume the expendi-
24 tures for are those optional services provided by applicable state law.
25 Any federally mandated medical assistance services are exempt from the
26 provisions of this subdivision.
27 (b) The commissioner of health is authorized to apply for any and all
28 federal waivers required to implement the provisions of this subdivi-
29 sion.
30 § 3. Subdivision 1 of section 368-a of the social services law is
31 amended by adding a new paragraph (z) to read as follows:
32 (z) (i) Notwithstanding any other provision of law, the full amount
33 expended by the local social services district for medical assistance
34 fraud, waste and abuse investigations via the use of data mining soft-
35 ware shall be reimbursed by the state if the county has previously
36 purchased or intends to purchase such software. For the purposes of this
37 paragraph, "data mining software" shall mean a database application that
38 utilizes advanced data searching capabilities and statistical analyses
39 to discover patterns and correlations in the use and abuse of medical
40 assistance practices. Any county that has previously purchased such
41 software must supply adequate documentation, including any receipts,
42 that details such purchase. The state shall disperse grants, when appli-
43 cable, from the general fund for this purpose.
44 (ii) The commissioner of health may develop rules and regulations as
45 necessary to carry out the provisions of this paragraph.
46 § 4. This act shall take effect immediately.
47 PART D
48 Section 1. Legislative findings and intent. Public school districts
49 in New York state have recently experienced numerous instances of finan-
50 cial scandals. These scandals have been unprecedented in both the number
51 and diversity of financial malfeasance. Furthermore, such scandals
52 result in the diversion of hard-earned property taxpayers' money from
A. 8775--A 11
1 their proper use in school instruction to improper and illegal purposes
2 that do not further the school districts' essential mission of educating
3 New York children. Therefore, the legislature finds that it is neces-
4 sary to establish a new, independent state agency charged with the func-
5 tion of investigating allegations of corruption, financial improprie-
6 ties, unethical conduct, misconduct or other criminal conduct within
7 public school districts outside of New York city. In addition, the
8 legislature further finds that the current laws must be amended to
9 incorporate school district financial safeguards and establish sanctions
10 for violations of school district finance laws.
11 § 2. The education law is amended by adding a new section 2116-d to
12 read as follows:
13 § 2116-d. Persons and officials required to report cases of suspected
14 corruption, other criminal activity or conflict of interest occurring
15 within the operations of a school district. 1. The following persons and
16 officials are required to report or cause a report to be made in accord-
17 ance with this section when they discover information concerning conduct
18 which is known or should reasonably be known to involve corruption or
19 other criminal activity or conflict of interest by either a public
20 school district employee that relates to their employment or by a
21 person, persons or entities doing business with a public school district
22 with respect to their transactions with the school district, any school
23 district officer, and any school district employee.
24 2. Any person or official mandated to report cases of suspected
25 corruption, other criminal activity or conflict of interest pursuant to
26 subdivision one of this section shall immediately report the information
27 they have to the New York state inspector general for education, as
28 established in article four-B of the executive law.
29 3. Any school district which employs persons mandated to report
30 suspected incidents of corruption, other criminal activity or conflict
31 of interest pursuant to subdivision one of this section shall provide
32 such current and new employees with written information explaining the
33 reporting requirements set out in subdivision one of this section.
34 4. Any person or official required by this section to report certain
35 information as specified in this section who willfully fails to do so
36 shall be guilty of a class A misdemeanor.
37 5. Any person or official required by this section to report certain
38 information as specified in this section who knowingly and willfully
39 fails to do so shall be civilly liable for the damages proximately
40 caused by such failure.
41 6. Any person or official participating in good faith in the making of
42 a report under this section shall have immunity from any liability,
43 civil or criminal, that might otherwise result by reason of such
44 actions. For the purpose of any proceeding, civil or criminal, the good
45 faith of any such person or official required to report under this
46 section shall be presumed, provided such person or official was acting
47 in discharge of their duties and within the scope of their employment,
48 and that such liability did not result from the willful misconduct or
49 gross negligence of such person or official.
50 § 3. Subdivision 6 of section 2122 of the education law is amended to
51 read as follows:
52 6. Such treasurer shall[, whenever required by such trustees,] report
53 to [them] such trustees a detailed [statement] annual report of the
54 moneys received by him and of his disbursements, and at the annual meet-
55 ing of such district he shall render a full account of all moneys
56 received by him and from what source, and when received, and all
A. 8775--A 12
1 disbursements made by him and to whom and the dates of such disburse-
2 ments respectively, and the balance of moneys remaining in his hands.
3 The treasurer shall certify in such annual report that he has: reviewed
4 the annual report; that based on the treasurer's knowledge, the report
5 does not contain any untrue statement of a material fact or omit to
6 state a material fact necessary in order to make the statements made, in
7 light of the circumstances under which such statements were made, not
8 misleading; and based on such treasurer's knowledge, the financial
9 statements, and other financial information included in the report,
10 fairly present in all material respects the financial condition and
11 results of operations of the school district as of, and for, the periods
12 presented in the report.
13 § 4. Section 1720 of the education law is amended by adding a new
14 subdivision 3 to read as follows:
15 3. The treasurer of the district shall issue an annual report with a
16 full and detailed account of all moneys received by the board or such
17 treasurer, for its account and use, and of all the moneys expended
18 therefor, giving the items of expenditure in full. The treasurer shall
19 certify in such annual report that he or she has: reviewed the annual
20 report; that based on the treasurer's knowledge, the report does not
21 contain any untrue statement of a material fact or omit to state a mate-
22 rial fact necessary in order to make the statements made, in light of
23 the circumstances under which such statements were made, not misleading;
24 and based on such treasurer's knowledge, the financial statements, and
25 other financial information included in the report, fairly present in
26 all material respects the financial condition and results of operations
27 of the school district as of, and for, the periods presented in the
28 report.
29 § 5. Section 2215 of the education law is amended by adding a new
30 subdivision 17 to read as follows:
31 17. To certify in the annual report issued pursuant to either section
32 seventeen hundred twenty of this title or section twenty-one hundred
33 twenty-two of this title that he has: reviewed the annual report; that
34 based on the superintendent's knowledge, the report does not contain any
35 untrue statement of a material fact or omit to state a material fact
36 necessary in order to make the statements made, in light of the circum-
37 stances under which such statements were made, not misleading; and based
38 on such superintendent's knowledge, the financial statements, and other
39 financial information included in the report, fairly present in all
40 material respects the financial condition and results of operations of
41 the school district as of, and for, the periods presented in the report.
42 § 6. The education law is amended by adding a new section 2116-e to
43 read as follows:
44 § 2116-e. Compensation committees. 1. Every school district, except
45 those employing fewer than eight teachers, shall establish by a resol-
46 ution of the trustees or board of education a local school district
47 compensation committee to oversee and report to the trustees or board on
48 the proposed contracts of all school district bargaining units, adminis-
49 trators and superintendents.
50 2. The compensation committee shall be established no later than Janu-
51 ary first, two thousand nine as a committee of the trustees or board, as
52 an advisory committee, or as a committee of the whole.
53 3. The compensation committee shall consist of at least three members,
54 at least two of whom shall not be a trustee or board member. The compen-
55 sation committee members shall serve without compensation. Employees of
56 the school district are prohibited from serving on the compensation
A. 8775--A 13
1 committee. A member of a compensation committee shall be deemed a school
2 district officer for the purposes of sections thirty-eight hundred elev-
3 en, thirty-eight hundred twelve and thirty-eight hundred thirteen of
4 this chapter, but shall not be required to be a resident of the school
5 district.
6 4. The role of a compensation committee shall be advisory and any
7 recommendations it provides to the trustees or board under subdivision
8 five of this section shall not substitute for any required review and
9 action by the trustees or board of education.
10 5. It shall be the responsibility of the compensation committee to:
11 (a) review every contract between the district and any bargaining
12 units, employees, administrators and superintendents negotiated after
13 January first, two thousand nine;
14 (b) receive and review proposed contracts between the district and any
15 bargaining units, employees, administrators and superintendents prior to
16 such contracts' approval; and
17 (c) provide recommendations to the trustees or board regarding the
18 salary, fringe benefits and other forms of compensation given and
19 proposed to be given to all school district employees, administrators
20 and superintendents.
21 6. Notwithstanding any provision of article seven of the public offi-
22 cers law or any other law to the contrary, a school district compen-
23 sation committee may conduct an executive session pursuant to section
24 one hundred five of the public officers law pertaining to any matter set
25 forth in paragraphs (a) and (b) of subdivision five of this section.
26 7. The commissioner is authorized to promulgate regulations with
27 respect to compensation committees as are necessary for the proper
28 performance of their duties.
29 8. As long as the chancellor of a school district in a city having a
30 population of one million or more inhabitants shall annually certify to
31 the commissioner that such district has a process for review by a
32 compensation committee of the district's contracts with any bargaining
33 units, employees, administrators and superintendents, the provisions of
34 this section shall not apply to such school district.
35 § 7. The education law is amended by adding a new section 2009-a to
36 read as follows:
37 § 2009-a. Additional requirements of notice prior to authorization of
38 school district employment contracts. Where any collective bargaining
39 agreement, employment contract or amendments to such agreement or
40 contract is to be submitted to a district meeting for a vote, the school
41 district board or trustees shall give notice, at least five weeks prior
42 to such meeting, through a district-wide mailing of the availability of
43 the agreement, contract or amendment at public libraries within the
44 district, at the school district offices and on the school district's
45 internet website, if one exists.
46 § 8. Subdivision 4 of section 1608 of the education law, as amended by
47 section 5 of part A of chapter 436 of the laws of 1997, is amended to
48 read as follows:
49 4. Commencing with the proposed budget for the nineteen hundred nine-
50 ty-eight--ninety-nine school year, such proposed budget shall be
51 presented in three components: a program component, a capital component
52 and an administrative component which shall be separately delineated in
53 accordance with regulations of the commissioner after consultation with
54 local school district officials. The administrative component shall
55 include, but need not be limited to, office and central administrative
56 expenses, traveling expenses and [salaries and benefits of all certified
A. 8775--A 14
1 school administrators and supervisors who spend a majority of their time
2 performing administrative or supervisory duties,] all compensation,
3 salaries and benefits of all school administrators, superintendents, and
4 teachers under existing employment contracts, any and all expenditures
5 associated with the operation of the office of trustee or board of trus-
6 tees, the office of the superintendent of schools, general adminis-
7 tration, the school business office, consulting costs not directly
8 related to direct student services and programs, planning and all other
9 administrative activities. The program component shall include, but need
10 not be limited to, all program expenditures of the school district,
11 including the salaries and benefits of teachers and any school adminis-
12 trators or supervisors who spend a majority of their time performing
13 teaching duties, and all transportation operating expenses. The capital
14 component shall include, but need not be limited to, all transportation
15 capital, debt service, and lease expenditures; costs resulting from
16 judgments in tax certiorari proceedings or the payment of awards from
17 court judgments, administrative orders or settled or compromised claims;
18 and all facilities costs of the school district, including facilities
19 lease expenditures, the annual debt service and total debt for all
20 facilities financed by bonds and notes of the school district, and the
21 costs of construction, acquisition, reconstruction, rehabilitation or
22 improvement of school buildings, provided that such budget shall include
23 a rental, operations and maintenance section that includes base rent
24 costs, total rent costs, operation and maintenance charges, cost per
25 square foot for each facility leased by the school district, and any and
26 all expenditures associated with custodial salaries and benefits,
27 service contracts, supplies, utilities, and maintenance and repairs of
28 school facilities. For the purposes of the development of a budget for
29 the nineteen hundred ninety-eight--ninety-nine school year, the trustee
30 or board of trustees shall separate the district's program, capital and
31 administrative costs for the nineteen hundred ninety-seven--ninety-eight
32 school year in the manner as if the budget for such year had been
33 presented in three components.
34 § 9. Subdivision 4 of section 1716 of the education law, as amended by
35 section 7 of part A of chapter 436 of the laws of 1997, is amended to
36 read as follows:
37 4. Commencing with the proposed budget for the nineteen hundred nine-
38 ty-eight--ninety-nine school year, such proposed budget shall be
39 presented in three components: a program component, a capital component
40 and an administrative component which shall be separately delineated in
41 accordance with regulations of the commissioner after consultation with
42 local school district officials. The administrative component shall
43 include, but need not be limited to, office and central administrative
44 expenses, traveling expenses and [salaries and benefits of all certified
45 school administrators and supervisors who spend a majority of their time
46 performing administrative or supervisory duties,] all compensation,
47 salaries and benefits of all school administrators, superintendents, and
48 teachers under existing employment contracts, any and all expenditures
49 associated with the operation of the board of education, the office of
50 the superintendent of schools, general administration, the school busi-
51 ness office, consulting costs not directly related to direct student
52 services and programs, planning and all other administrative activities.
53 The program component shall include, but need not be limited to, all
54 program expenditures of the school district, including the salaries and
55 benefits of teachers and any school administrators or supervisors who
56 spend a majority of their time performing teaching duties, and all
A. 8775--A 15
1 transportation operating expenses. The capital component shall include,
2 but need not be limited to, all transportation capital, debt service,
3 and lease expenditures; costs resulting from judgments in tax certiorari
4 proceedings or the payment of awards from court judgments, administra-
5 tive orders or settled or compromised claims; and all facilities costs
6 of the school district, including facilities lease expenditures, the
7 annual debt service and total debt for all facilities financed by bonds
8 and notes of the school district, and the costs of construction, acqui-
9 sition, reconstruction, rehabilitation or improvement of school build-
10 ings, provided that such budget shall include a rental, operations and
11 maintenance section that includes base rent costs, total rent costs,
12 operation and maintenance charges, cost per square foot for each facili-
13 ty leased by the school district, and any and all expenditures associ-
14 ated with custodial salaries and benefits, service contracts, supplies,
15 utilities, and maintenance and repairs of school facilities. For the
16 purposes of the development of a budget for the nineteen hundred nine-
17 ty-eight--ninety-nine school year, the board of education shall separate
18 the district's program, capital and administrative costs for the nine-
19 teen hundred ninety-seven--ninety-eight school year in the manner as if
20 the budget for such year had been presented in three components.
21 § 10. Subdivision 2 of section 1608 of the education law, as amended
22 by section 5 of part A of chapter 436 of the laws of 1997, is amended to
23 read as follows:
24 2. Such statement shall be completed at least seven days before the
25 budget hearing at which it is to be presented and copies thereof shall
26 be prepared and made available[, upon request,] at the school district
27 offices, at public libraries within the district and on the school
28 district's internet website, if one exists, to residents within the
29 district during the period of [fourteen] thirty days immediately preced-
30 ing the annual meeting and election or special district meeting at which
31 the budget vote will occur and at such meeting or hearing. The board
32 shall also as a part of the notice required by section two thousand
33 three of this chapter give notice of the date, time and place of the
34 budget hearing and that a copy of such statement may be obtained by any
35 resident in the district at each schoolhouse in the district in which
36 school is maintained during certain designated hours on each day other
37 than a Saturday, Sunday or holiday during the [fourteen] thirty days
38 immediately preceding such meeting. The board shall include notice of
39 the availability of such statement at least once during the school year
40 in any district-wide mailing distributed.
41 § 11. Subdivision 2 of section 1716 of the education law, as amended
42 by section 7 of part A of chapter 436 of the laws of 1997, is amended to
43 read as follows:
44 2. Such statement shall be completed at least seven days before the
45 budget hearing at which it is to be presented and copies thereof shall
46 be prepared and made available[, upon request,] at the school district
47 offices, at public libraries within the district and on the school
48 district's internet website, if one exists, to residents within the
49 district during the period of [fourteen] thirty days immediately preced-
50 ing the annual meeting and election or special district meeting at which
51 the budget vote will occur and at such meeting or hearing. The board
52 shall also as a part of the notice required by section two thousand four
53 of this chapter give notice of the date, time and place of the budget
54 hearing and that a copy of such statement may be obtained by any resi-
55 dent in the district at each schoolhouse in the district in which school
56 is maintained during certain designated hours on each day other than a
A. 8775--A 16
1 Saturday, Sunday or holiday during the [fourteen] thirty days immediate-
2 ly preceding such meeting. The board shall include notice of the avail-
3 ability of such statement at least once during the school year in any
4 district-wide mailing distributed.
5 § 12. Paragraph (c) of subdivision 3 of section 2116-a of the educa-
6 tion law, as added by chapter 263 of the laws of 2005, is amended to
7 read as follows:
8 (c) Notwithstanding the provisions of subparagraph one of paragraph
9 (b) of subdivision four of section thirty-five of the general municipal
10 law, each school district shall (i) prepare a corrective action plan in
11 response to any findings contained in the annual external audit report
12 or management letter, or any final audit report issued by the state
13 comptroller, within ninety days of receipt of such report or letter, and
14 (ii) to the extent practicable, begin implementation of such corrective
15 action plan no later than the end of the next fiscal year. Each school
16 district shall notify the district residents of the availability of the
17 corrective action plan at public libraries within the district, at the
18 school district offices and on the school district's internet website,
19 if one exists. Any school district which fails to comply with the
20 required notification of availability of the corrective action plan
21 shall be subject to a civil penalty not to exceed five thousand dollars
22 upon an administrative determination by the commissioner.
23 § 13. The executive law is amended by adding a new article 4-B to read
24 as follows:
25 ARTICLE 4-B
26 OFFICE OF THE STATE INSPECTOR GENERAL FOR EDUCATION
27 Section 57. Establishment and organization.
28 58. Functions and duties.
29 59. Powers.
30 § 57. Establishment and organization. 1. There is hereby established
31 the office of the state inspector general for education. The head of the
32 office shall be the education inspector general, who shall be appointed
33 by the board of the office of the state inspector general for educa-
34 tion. Such office shall be independent of the department of education
35 and of any other office, agency, board or commission of the state or any
36 of its political subdivisions.
37 2. The education inspector general may employ and at their pleasure
38 remove such personnel as they deem necessary for the performance of the
39 office, and may fix their compensation with amounts available therefor.
40 3. There is hereby established the board of the office of the state
41 inspector general for education which shall consist of eleven members,
42 and shall have and exercise the powers and duties of the office of the
43 state inspector general for education.
44 4. The board members shall be appointed as follows:
45 (a) three members shall be appointed by the governor, one of whom
46 shall be designated by the governor as the chair of the board;
47 (b) three members shall be appointed by the temporary president of the
48 senate;
49 (c) three members shall be appointed by the speaker of the assembly;
50 (d) one member shall be appointed by the minority leader of the assem-
51 bly; and
52 (e) one member shall be appointed by the minority leader of the
53 senate.
54 5. The board members shall serve for terms of five years.
A. 8775--A 17
1 6. The chair of the board or any five members thereof may call a meet-
2 ing of the board.
3 7. Any vacancy occurring on the board shall be filled within sixty
4 days of its occurrence, in the same manner as the member whose vacancy
5 is being filled was appointed. A person appointed to fill a vacancy
6 occurring other than by expiration of a term of office shall be
7 appointed for the unexpired term of the member he or she succeeds.
8 8. Six members of the board shall constitute a quorum and the board
9 shall have the power to act by majority vote of the total number of
10 members of the board without vacancy.
11 9. The board members shall not receive compensation but shall be reim-
12 bursed for reasonable expenses incurred in the performance of their
13 official duties.
14 10. The board shall appoint an education inspector general who shall
15 perform the powers and duties set forth in sections fifty-eight and
16 fifty-nine of this article, and who shall serve for a term of five
17 years and may only be dismissed for cause or by a three-quarters vote of
18 the board. The board may fix the compensation of the education inspec-
19 tor general.
20 11. No board member, nor the education inspector general, shall hold
21 any elected public office or office in any political party, nor shall
22 any member be an employee of or under the supervision of any person who
23 holds such elected public office or office of a political party. No
24 member of the board shall serve in any public or political office with-
25 in five years of the member's period of service.
26 12. The education inspector general shall, prior to their appointment,
27 have had at least ten years experience in auditing or law enforcement or
28 investigation, or in prosecuting or aiding in the prosecution of fraud.
29 13. Members of the board shall, prior to their appointment, have had
30 at least three years experience in auditing or investigation of govern-
31 mental or school district operations, or in the practice of law, law
32 enforcement or in services related to development and management of
33 information technology or database creation and maintenance.
34 § 58. Functions and duties. The education inspector general shall
35 have the following duties and responsibilities:
36 1. to receive and investigate complaints from any source, or upon his
37 or her own initiative, concerning allegations of corruption, financial
38 improprieties, unethical conduct, misconduct or other criminal conduct
39 within public school districts outside of a city with a population of
40 one million or more;
41 2. to investigate and report on corruption and other criminal activ-
42 ity, school board election fraud, bidding irregularities and conflicts
43 of interest by public school district employees whose actions relate to
44 their employment, persons or entities doing business with a public
45 school district concerning their transactions with the school district,
46 and school board members whose actions relate to their office;
47 3. to determine with respect to such allegations whether disciplinary
48 action, civil or criminal prosecution, or further investigation by an
49 appropriate federal, state or local agency is warranted, and to assist
50 in such investigations;
51 4. to review and examine periodically the policies and procedures of
52 public school districts with regard to the prevention and detection of
53 corruption, financial improprieties, unethical conduct, misconduct,
54 other criminal conduct, school board election fraud, bidding irregulari-
55 ties and conflicts of interest or abuse;
A. 8775--A 18
1 5. to recommend remedial action to prevent or eliminate corruption,
2 financial improprieties, unethical conduct, misconduct, other criminal
3 conduct, school board election fraud, bidding irregularities, conflicts
4 of interest or abuse by public school district officials and employees;
5 6. to establish programs for training public school officials and
6 employees regarding the prevention and elimination of corruption, finan-
7 cial improprieties, unethical conduct, misconduct, other criminal
8 conduct, school board election fraud, bidding irregularities and
9 conflicts of interest or abuse;
10 7. to prepare an annual report that provides the results of the educa-
11 tion inspector general's findings with respect to all investigations
12 and detailed analysis of the current financial status of those school
13 districts that have been reviewed;
14 8. to include in such report any findings regarding the financial
15 practices of the school district that the education inspector general
16 believes violated, or could potentially violate, existing state rules
17 or regulations or may be of concern in that incompetence or lack of
18 training may result in financial practices that violate state rules and
19 regulations;
20 9. to issue the report to the legislature, the comptroller and the
21 department of education with each annual report posted on a public
22 internet website for at least five years from the date of issuance.
23 § 59. Powers. The education inspector general shall have the power
24 to:
25 1. subpoena and enforce the attendance of witnesses, including the
26 power to subpoena documents and records necessary to any investigation
27 from any public school district outside of a city with a population of
28 one million or more and from vendors who do business with such public
29 school districts;
30 2. administer oaths or affirmations and examine witnesses under oath;
31 3. require the production of any books and papers deemed relevant or
32 material to any investigation, examination or review;
33 4. notwithstanding any law to the contrary, examine and copy or remove
34 documents or records of any kind prepared, maintained or held by any
35 public school district covered by this article;
36 5. require any public school district employee to answer questions
37 concerning any matter related to the performance of his or her official
38 duties. No statement or other evidence derived therefrom may be used
39 against such officer or employee in any subsequent criminal prosecution
40 other than for perjury or contempt arising from such testimony. The
41 refusal of any officer or employee to answer questions shall be cause
42 for removal from office or employment or other appropriate penalty;
43 6. monitor the implementation by public school districts of any recom-
44 mendations made by the education inspector general;
45 7. perform any other functions that are necessary or appropriate to
46 fulfill the duties and responsibilities of the office.
47 § 14. Subparagraphs 2 and 3 of paragraph b of subdivision 2 of section
48 33 of the general municipal law, as added by chapter 267 of the laws of
49 2005, are amended and a new subparagraph 4 is added to read as follows:
50 (2) assessing the current financial practices of school districts,
51 BOCES and charter schools to ensure that they are consistent with estab-
52 lished standards, [and]
53 (3) determining that school districts, BOCES, and charter schools
54 provide for adequate protections against any fraud, theft, or profes-
55 sional misconduct[.], and
A. 8775--A 19
1 (4) auditing federal and state grant program expenditures in all
2 school districts, BOCES and charter schools.
3 § 15. Paragraph d of subdivision 2 of section 33 of the general munic-
4 ipal law, as added by chapter 267 of the laws of 2005, is amended to
5 read as follows:
6 d. The office of the state comptroller shall upon making a finding of
7 misconduct refer any findings of fraud, abuse or other conduct consti-
8 tuting a crime that are uncovered during the course of an audit, as
9 appropriate, to the commissioner of education, the New York state
10 inspector general for education, the charter entity, the attorney gener-
11 al, United States attorney or district attorney having jurisdiction for
12 appropriate action, together with any documents supporting the auditors'
13 findings.
14 § 16. The labor law is amended by adding a new section 742 to read as
15 follows:
16 § 742. Prohibition; public school district employer who penalizes
17 employees because of complaints of employer malfeasance. 1. Defi-
18 nitions. As used in this section, the following terms shall have the
19 following meanings:
20 (a) "Employee" means any person who performs services for and under
21 the control and direction of any public school district outside of a
22 city with a population of one million or more for wages or other remun-
23 eration.
24 (b) "Employer" means any public school district outside of a city with
25 a population of one million or more.
26 (c) "Agent" means any individual, partnership, association, corpo-
27 ration, or group of persons acting on behalf of an employer.
28 (d) "Public body" means:
29 (1) the United States Congress, any state legislature, or any elected
30 local governmental body, or any member or employee thereof;
31 (2) the New York state inspector general for education;
32 (3) the state comptroller;
33 (4) the attorney general;
34 (5) any federal, state or local regulatory, administrative or public
35 agency or authority, or instrumentality thereof;
36 (6) any federal, state or local law enforcement agency, prosecutorial
37 office, or police or peace officer;
38 (7) any federal, state or local department of an executive branch of
39 government; or
40 (8) any division, board, bureau, office, committee or commission of
41 any of the public bodies described in subparagraph one, two, three,
42 four, five, six or seven of this paragraph.
43 (e) "Retaliatory action" means the discharge, suspension, demotion,
44 penalization or discrimination against an employee, or other adverse
45 employment action taken against an employee in the terms and conditions
46 of employment.
47 (f) "Supervisor" means any person within an employer's organization
48 who has the authority to direct and control the work performance of an
49 employee, or who has the authority to take corrective action regarding
50 fraud, criminal activity or other malfeasance to which an employee
51 submits a complaint.
52 2. Retaliatory action prohibited. Notwithstanding any other provision
53 of law, no employer shall take retaliatory action against any employee
54 because the employee does any of the following:
55 (a) discloses or threatens to disclose to a supervisor, or to a public
56 body an activity, policy or practice of the employer or agent that the
A. 8775--A 20
1 employee, in good faith, reasonably believes constitutes fraud, crimi-
2 nal activity or other malfeasance; or
3 (b) objects to, or refuses to participate in any activity, policy or
4 practice of the employer or agent that the employee, in good faith,
5 reasonably believes constitutes fraud, criminal activity or other
6 malfeasance.
7 3. Enforcement. An employee may seek enforcement of this section
8 pursuant to paragraph (e) of subdivision four of section seven hundred
9 forty of this article.
10 4. Relief. In any court action brought pursuant to this section it
11 shall be a defense that the personnel action was predicated upon grounds
12 other than the employee's exercise of any rights protected by this
13 section.
14 § 17. Subdivision 4 of section 740 of the labor law is amended by
15 adding a new paragraph (e) to read as follows:
16 (e) Notwithstanding the provisions of paragraphs (a) and (c) of this
17 subdivision, an employee who has been the subject of a retaliatory
18 action by an employer in violation of section seven hundred forty-two of
19 this article may institute a civil action in a court of competent juris-
20 diction for relief as set forth in subdivision five of this section
21 within two years after the alleged retaliatory personnel action was
22 taken. In addition to the relief set forth in such subdivision five, the
23 court, in its discretion, based upon a finding that the employer acted
24 in bad faith in the retaliatory action, may order the employer to termi-
25 nate the supervisor who retaliated against the employee.
26 § 18. The penal law is amended by adding a new section 190.72 to read
27 as follows:
28 § 190.72 Defrauding a public pension plan.
29 A person is guilty of defrauding a public pension plan when he or she
30 engages in a scheme constituting a systematic ongoing course of conduct
31 with intent to obtain a benefit or asset, or assist a third party to
32 obtain a benefit or asset, from a public pension plan to which he or she
33 or the third party is not otherwise entitled to pursuant to the
34 restriction of section two hundred eleven of the retirement and social
35 security law.
36 Defrauding a public pension plan is a class E felony.
37 § 19. Section 211 of the retirement and social security law is amended
38 by adding a new subdivision 9 to read as follows:
39 9. A retired person receiving a retirement allowance who is employed
40 and earning compensation in a public service position or positions with
41 the total compensation exceeding the limitations set forth in section
42 two hundred twelve of this article and such person has not obtained the
43 requisite waiver set forth in this section, as well as any person who
44 knowingly assists another person in receiving a retirement allowance
45 while receiving total compensation in a public service position or posi-
46 tions exceeding the limits of section two hundred twelve of this article
47 and not having obtained the requisite waiver, is guilty of larceny and
48 punishable as provided in the penal law.
49 § 20. The retirement and social security law is amended by adding a
50 new section 217 to read as follows:
51 § 217. Reporting requirements. 1. A school district, a board of coop-
52 erative educational services and a college as defined in section two of
53 the education law shall report all money earned by a retired person in
54 their employ that is in excess of the earnings limitation outlined in
55 section two hundred twelve of this article to the retirement system
A. 8775--A 21
1 administered by the state or any of its political subdivisions from whom
2 such retired person is collecting their retirement allowance.
3 2. A school district employing a retired person who is eligible to
4 collect or is already collecting a retirement allowance from a retire-
5 ment system administered by the state or any of its political subdivi-
6 sions shall report on a monthly basis to the retirement system paying
7 such retirement allowance to such retired person and to the New York
8 state inspector general for education. This report shall consist of the
9 re-employed retiree's name, date of birth, place of employment, current
10 position and all earnings.
11 § 21. The general municipal law is amended by adding a new article
12 2-A to read as follows:
13 ARTICLE 2-A
14 MUNICIPAL COOPERATION PROGRAM
15 Section 25. Municipal cooperation program.
16 § 25. Municipal cooperation program. 1. Establishment. There are
17 hereby established a state conference on municipal cooperation and eight
18 regional commissions on municipal cooperation. The regional commissions
19 shall be as follows and shall consist of the following counties:
20 (a) Long Island - New York: Bronx, Kings, Nassau, New York, Queens,
21 Richmond and Suffolk.
22 (b) Hudson Valley: Dutchess, Orange, Putnam, Rockland, Sullivan,
23 Ulster and Westchester.
24 (c) Capital: Columbia, Greene, Albany, Schoharie, Rensselaer, Schenec-
25 tady, Montgomery, Fulton, Saratoga and Washington.
26 (d) North Country: Warren, Essex, Clinton, Franklin, Hamilton, Saint
27 Lawrence, Lewis, Oswego and Jefferson.
28 (e) Central - Mohawk Valley: Otsego, Herkimer, Oneida, Madison, Cort-
29 land, Onondaga and Cayuga.
30 (f) Southern Tier: Delaware, Broome, Chenango, Tioga, Tompkins,
31 Schuyler, Chemung, Allegany and Steuben.
32 (g) Finger Lakes: Wayne, Seneca, Yates, Ontario, Livingston and
33 Monroe.
34 (h) Western: Cattaraugus, Chautauqua, Erie, Wyoming, Genesee, Orleans
35 and Niagara.
36 2. State conference on municipal cooperation membership. (a) The
37 state conference on municipal cooperation shall consist of nine members.
38 The secretary of state shall be a member of the conference and shall
39 serve as its chair. The vice chair of each regional commission shall
40 serve as a member of the state conference on municipal cooperation.
41 (b) The state conference shall allocate funds pursuant to this section
42 to each regional commission. The state conference shall promulgate any
43 rules and regulations necessary to implement the provisions of this
44 section; however such rules and regulations, and any changes thereto
45 shall not take effect until approved by a majority vote of the governor,
46 temporary president of the senate, speaker of the assembly, minority
47 leader of the senate and minority leader of the assembly.
48 3. Regional commissions membership. (a) Each regional commission
49 shall consist of nine members, appointed as follows:
50 (i) two members shall be appointed by the governor, one of whom shall
51 be the chair of the regional commission and the other shall serve as
52 vice chair;
53 (ii) two members shall be appointed by the temporary president of the
54 senate;
55 (iii) two members shall be appointed by the speaker of the assembly;
A. 8775--A 22
1 (iv) one member shall be appointed by the minority leader of the
2 senate;
3 (v) one member shall be appointed by the minority leader of the assem-
4 bly; and
5 (vi) one member shall be appointed by the state comptroller.
6 (b) Each regional commission may conduct business with a quorum of
7 members in office at the time.
8 (c) Each member of a regional commission shall serve at the pleasure
9 of his or her appointing authority.
10 (d) Members of regional commissions shall receive no compensation for
11 their service but shall be allowed their actual and necessary expenses
12 incurred in the performance of their duties.
13 (e) Every member of a regional commission shall reside within the
14 region regulated by the regional commission upon which he or she serves.
15 (f) Every member of a regional commission who is an elected official
16 shall recuse himself or herself from any meeting of the commission deal-
17 ing directly with an issue impacting upon the municipality which elected
18 such member.
19 (g) A two-thirds majority of each regional commission shall appoint an
20 executive director, who shall conduct the business of such regional
21 commission under the supervision of the regional commission. The execu-
22 tive director shall also be authorized to hire such additional staff as
23 necessary to execute the work of the regional commission. The executive
24 director may be removed only by a three-quarters vote of the members of
25 the regional commission.
26 (h) The purpose of the regional commissions shall be to:
27 (i) increase communication between local governments to discuss shared
28 services, consolidation, and the merger of local governments;
29 (ii) provide technical and financial assistance and training to local
30 governments; and
31 (iii) identify state and local laws which must be changed to achieve
32 budgetary and property tax savings through sharing arrangements.
33 (i) The regional commissions may award grants to local governments
34 which seek to work together to achieve savings. Each regional commission
35 shall provide grants in the following manner: twenty percent of all
36 funds available for the provision of grants shall be used for research
37 grants, ten percent for implementation grants, and seventy percent for
38 cooperation reward grants. A regional commission may alter this allo-
39 cation with the approval of at least two-thirds of its members.
40 4. Research grants. Each regional commission shall seek to provide the
41 assistance necessary to research the efficacy of cooperative efforts
42 between localities. If such research is beyond the scope of the commis-
43 sion, then the localities may seek a fifty percent matching grant from
44 the regional commission to hire a public, private or academic entity to
45 conduct such research. The provision of any research grant, and the
46 entity which shall conduct the research, shall be subject to approval by
47 the regional commission.
48 5. Implementation grants. Municipalities which have chosen to execute
49 the cooperative effort, shall identify costs of implementing the effort
50 and request a grant from the regional commission. Costs eligible for
51 grants may include, but shall not be limited to: early retirement or
52 resignation incentives; purchases of buildings or equipment; or hiring
53 of temporary employees to assist in consolidation. Such grants shall be
54 subject to approval by the regional commission. Implementation grants
55 shall be awarded in the following manner:
A. 8775--A 23
1 (a) grants to fund the consolidation of services between munici-
2 palities or the provision of services from one municipality to another.
3 Such grants shall equal fifty percent of the costs associated with such
4 merger or consolidation; and
5 (b) grants to fund mergers between municipalities. Such grants shall
6 not exceed one hundred percent of the costs associated with such merger.
7 6. Cooperation reward grants. (a) The regional commission may award
8 grants to municipalities which have elected to execute a cooperative
9 effort. Municipalities which have elected to execute a cooperative
10 effort shall identify one of the participating municipalities, which
11 shall act as a lead agent, which shall identify the savings which are
12 expected to accrue to the municipalities and request a grant in the
13 amount determined pursuant to this subdivision, and submit a report to
14 their regional commission, which shall be reviewed and adjusted accord-
15 ingly by the regional commission. At that time, the regional commission
16 may approve or reject the grant application according to applicable
17 provisions of this section and any applicable rules or regulations which
18 may be promulgated by the state conference and approved by majority vote
19 of the governor and legislative leaders.
20 (b) If approved, after the end of the first year of the consolidation,
21 the lead agent shall produce a report which shall state the savings
22 which the municipalities have experienced during the year. That report
23 shall be submitted to their regional commission, which shall validate
24 the savings which have accrued to the localities. Such savings will be
25 calculated by comparing the total amount spent for services which have
26 been consolidated with the projected cost of the services which have
27 been consolidated if the consolidation had not occurred, in the case of
28 functional consolidations; or the combined budgets of the merged munici-
29 pality, with the combined budgets of the municipalities which have been
30 merged if the merger had not occurred, in the case of mergers.
31 (c) The regional commission shall certify the validity of the savings
32 identified by the lead agent. Regional commissions may request the
33 assistance of the state comptroller to validate the savings. After such
34 savings are validated, the grant may be rewarded to the municipalities
35 in an amount determined pursuant to this subdivision.
36 (d) Such process shall be repeated each year, for a period of five
37 years in the case of functional consolidations and seven years in the
38 case of mergers.
39 (e) Cooperation reward grants shall be determined on the following
40 basis:
41 (i) grants to reward functional consolidation, i.e., consolidation of
42 services between municipalities. Such grants shall equal fifty percent
43 of the identified and validated savings associated with such consol-
44 idation; and
45 (ii) grants to reward mergers between municipalities. Such grants
46 shall not exceed one hundred percent of the identified and validated
47 savings associated with such merger.
48 7. Cooperation efforts. No provision of this section shall preclude a
49 school district or special tax district from participating in consol-
50 idation or merger efforts or activities.
51 § 22. This act shall take effect on the first of January next succeed-
52 ing the date on which it shall have become a law; provided, however,
53 that any costs to any school district pursuant to sections two through
54 twenty of this act shall be paid by the state.
55 PART E
A. 8775--A 24
1 Section 1. Notwithstanding the provisions of article 47 of the insur-
2 ance law, or any other provision of law to the contrary, a county shall
3 be authorized to enter into a municipal cooperative agreement authorized
4 by article 5-G of the general municipal law, with one or more school
5 districts, towns, or villages, in order to provide health care benefits
6 or establish a health care plan for their respective employees. Such
7 county shall be authorized to charge an administrative fee to such
8 school districts, towns, or villages for participation in such agree-
9 ment.
10 § 2. This act shall take effect immediately.
11 § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
12 sion, section or part of this act shall be adjudged by any court of
13 competent jurisdiction to be invalid, such judgment shall not affect,
14 impair, or invalidate the remainder thereof, but shall be confined in
15 its operation to the clause, sentence, paragraph, subdivision, section
16 or part thereof directly involved in the controversy in which such judg-
17 ment shall have been rendered. It is hereby declared to be the intent of
18 the legislature that this act would have been enacted even if such
19 invalid provisions had not been included herein.
20 § 4. This act shall take effect immediately provided, however, that
21 the applicable effective date of Parts A through E of this act shall be
22 as specifically set forth in the last section of such Parts.
