Bill Text: NY A00220 | 2019-2020 | General Assembly | Introduced


Bill Title: Authorizes the authorities budget office to suspend local authority board members and executive staff for failure to submit any report required by public authorities law section 2800.

Spectrum: Moderate Partisan Bill (Democrat 9-1)

Status: (Passed) 2019-08-22 - signed chap.181 [A00220 Detail]

Download: New_York-2019-A00220-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                           220
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                       (Prefiled)
                                     January 9, 2019
                                       ___________
        Introduced  by  M. of A. PAULIN, DINOWITZ, SEAWRIGHT, BUCHWALD -- Multi-
          Sponsored by -- M. of A. COOK, CROUCH -- read once and referred to the
          Committee on Corporations, Authorities and Commissions
        AN ACT to amend the public authorities law, in relation  to  authorizing
          the authorities budget office to suspend local authority board members
          and executive staff
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The public authorities law  is  amended  by  adding  a  new
     2  section 6-a to read as follows:
     3    §  6-a.  Power  to suspend local authority board members and executive
     4  staff. 1. The  authorities  budget  office  shall  have  the  authority,
     5  subject  to  subdivision  two  of  this  section, to suspend one or more
     6  members of a local authority board of directors, or the chief  executive
     7  officer  or equivalent position of a local authority for a period not to
     8  exceed ninety days when such individual or individuals  knowingly  fails
     9  or  neglects  to  submit  any  report  required  by section twenty-eight
    10  hundred of this chapter within thirty-six months of its  due  date.  The
    11  authorities  budget  office is authorized to terminate such a suspension
    12  if the board member or chief executive officer demonstrates that  he  or
    13  she has remedied their non-compliance. For the purposes of this section,
    14  the  "suspension"  of  an individual shall mean the temporary removal of
    15  the rights, responsibilities, powers and duties of a person  who  is  an
    16  appointed board member of a local authority or the individual who serves
    17  as  chief  executive officer through appointment or contract. Should the
    18  authorities budget office suspend the  full  board  of  directors  or  a
    19  majority  of  current board members the term "suspension" shall mean the
    20  board of directors is prohibited from taking actions, votes, or adopting
    21  resolutions, that bind the board to future agreements, contracts, finan-
    22  cial commitments, indebtedness, or other  actions,  other  than  actions
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04270-01-9

        A. 220                              2
     1  necessary  to  resolve  the  noncompliance  or satisfy existing legal or
     2  administrative obligations.
     3    2.  (a)  Pursuant to policies and procedures developed by the authori-
     4  ties budget office and made available on its website, when the  authori-
     5  ties  budget office has reason to believe that one or more board members
     6  of a local authority has knowingly failed or  neglected  to  submit  any
     7  report  required  by section twenty-eight hundred of this chapter within
     8  thirty-six months of its due date, the authorities budget  office  shall
     9  provide  at  least thirty days' notice of its intent to initiate suspen-
    10  sion proceedings to the chairperson of the local authority, to the indi-
    11  vidual or individuals responsible for appointing such board members, and
    12  to each such board member. If the authorities budget office  has  reason
    13  to  believe  that  the  chief executive officer of a local authority has
    14  knowingly failed or neglected to submit any report required  by  section
    15  twenty-eight hundred of this chapter within thirty-six months of its due
    16  date,  the authorities budget office shall provide at least thirty days'
    17  notice of its intent to initiate suspension proceedings  to  the  chair-
    18  person  of  the local authority and to the chief executive officer. Such
    19  notice shall include, but shall not be limited to (i)  the  date  and  a
    20  brief  description  of  the  facts and nature of each non-compliance for
    21  which such suspension is proposed; (ii) the  number  of  days  that  the
    22  authorities budget office proposes to suspend such board member or chief
    23  executive  officer;  (iii) the option to submit a formal response to the
    24  authorities budget office which demonstrates why such  board  member  or
    25  chief executive officer should not be suspended; and (iv) if applicable,
    26  a  period of time in which such local authority or board member or chief
    27  executive officer may remedy the non-compliance.
    28    (b) If, after the expiration of the deadline set forth in  the  notice
    29  of  intent pursuant to subparagraph (iv) of paragraph (a) of this subdi-
    30  vision, the board member or members or chief executive officer, whichev-
    31  er is applicable, has not responded to the notice or  has  not  remedied
    32  the non-compliance to the satisfaction of the authorities budget office,
    33  the  authorities  budget  office  shall issue to the non-compliant board
    34  member or members or chief executive  officer  a  notice  of  suspension
    35  which  shall include: (i) the number of days of suspension; and (ii) the
    36  date that such suspension shall commence, which date shall be  at  least
    37  one  hundred  eighty days from the date of the issuance of the notice of
    38  suspension.
    39    3. (a) Whenever the authorities budget office  has  suspended  one  or
    40  more  board  members of a local authority, the individual or individuals
    41  who appointed those board members may act to reinstate a suspended board
    42  member. If the appointing authority is a legislative body or a member of
    43  the legislative body, any action to reinstate a suspended  board  member
    44  shall  occur  in a public meeting of such body and following an opportu-
    45  nity for the public to comment. Such action shall be deemed  valid  upon
    46  passage  of  a  written  resolution  of  reinstatement by a majority and
    47  recorded vote of the legislative body. Such  resolution  shall  describe
    48  the  facts  and  circumstances by which the legislative body has reached
    49  this determination. If the appointing authority is the  chief  executive
    50  official  of  the municipality for whose benefit the local authority was
    51  created, any action to reinstate  a  suspended  board  member  shall  be
    52  through  an official act of the chief executive official. Such act shall
    53  be recorded in writing and shall describe the facts and circumstances by
    54  which the chief executive official reached this determination.
    55    (b) Whenever the authorities budget office  has  suspended  the  chief
    56  executive  officer  of  a local authority, the chairperson of such local

        A. 220                              3
     1  authority may initiate action to reinstate the suspended chief executive
     2  officer. Any action to reinstate a  suspended  chief  executive  officer
     3  shall  occur in a public meeting of the board of directors and following
     4  an  opportunity  for  the public to comment. Such action shall be deemed
     5  valid upon passage of a written resolution of reinstatement by a majori-
     6  ty and recorded vote of the current board of directors. Such  resolution
     7  shall  describe the facts and circumstances by which the board of direc-
     8  tors reached this determination.
     9    (c) For the purposes of this section, "reinstatement" shall  mean  the
    10  restoration  of  the  rights,  responsibilities,  powers and duties of a
    11  board member or chief executive officer of a local authority.
    12    § 2. This act shall take effect on the ninetieth day  after  it  shall
    13  have become a law.
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