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

                                  4135

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 30, 2009
                               ___________

Introduced  by  M. of A. AMEDORE, TOBACCO, KOLB -- Multi-Sponsored by --
  M. of A. ERRIGO, McDONOUGH, REILICH -- read once and referred  to  the
  Committee on Real Property Taxation

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 investigations within the public school districts  outside
  New  York  city  and  establishing  the  office of the state inspector
  general for education; and to amend  the  general  municipal  law,  in
  relation  to  establishing  a  municipal cooperation program (Part D);
  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);  and  to  amend  the  real
  property  tax  law, in relation to allowing a real property tax freeze
  for property owned by certain persons over 65 years of age (Part F)


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04796-01-9

              

A. 4135                             2

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

  Section  1.  This  act enacts into law major components of legislation
which are necessary to enact  the  New  York  state  property  taxpayers
protection act. Each component is wholly contained within a Part identi-
fied  as  Parts  A  through  F.  The  effective date for each particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part, includ-
ing the effective date of the Part, which makes reference to  a  section
"of  this  act", when used in connection with that particular component,
shall be deemed to mean and refer to the corresponding  section  of  the
Part  in  which  it  is  found.  Section four of this act sets forth the
general effective date of this act.
  S 2. This act shall be known and may be cited as the "Property taxpay-
ers protection act".

                                 PART A

  Section 1. The real property tax  law  is  amended  by  adding  a  new
section 1307 to read as follows:
  S  1307.  LIMITATIONS  UPON SCHOOL DISTRICT TAX LEVIES. 1.  GENERALLY.
NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, BEGINNING WITH THE
TWO THOUSAND TEN--TWO THOUSAND ELEVEN SCHOOL YEAR, THE AMOUNT  OF  TAXES
LEVIED  FOR  SCHOOL DISTRICT PURPOSES FOR ANY SCHOOL YEAR MAY NOT EXCEED
THE AMOUNT OF TAXES LEVIED FOR THE PRIOR SCHOOL YEAR BY FOUR PERCENT, OR
BY THE "INFLATION FACTOR" DESCRIBED HEREIN, WHICHEVER IS LOWER. FOR THIS
PURPOSE, THE INFLATION FACTOR SHALL BE A PERCENTAGE THAT REPRESENTS  THE
AVERAGE  OF THE NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE UNITED
STATES DEPARTMENT OF LABOR FOR THE TWELVE MONTHS OF THE  PRIOR  CALENDAR
YEAR.  ON OR BEFORE APRIL FIRST OF EACH YEAR, THE COMMISSIONER OF EDUCA-
TION SHALL DETERMINE THE APPLICABLE LIMITATION UPON SCHOOL DISTRICT  TAX
LEVIES  FOR  THE  ENSUING  SCHOOL  YEAR,  AND  SHALL  NOTIFY EACH SCHOOL
DISTRICT ACCORDINGLY.
  2. EXCEPTIONS.  (A)  VOTER  APPROVAL.  THE  INHABITANTS  OF  A  SCHOOL
DISTRICT  MAY,  BY  A  TWO-THIRDS MAJORITY VOTE, SUSPEND THE LIMITATIONS
IMPOSED BY THIS SECTION IN THE SAME MANNER AS IS PROVIDED BY LAW FOR THE
APPROVAL OF SCHOOL DISTRICT EXPENDITURES. NO SUCH VOTE  SHALL  APPLY  TO
MORE  THAN ONE SCHOOL YEAR. THE QUESTION OF WHETHER TO SUSPEND THE LIMI-
TATIONS FOR A PARTICULAR SCHOOL YEAR MAY BE SUBMITTED TO THE  VOTERS  NO
MORE  THAN  ONCE.    WHEN SUCH A QUESTION IS SUBMITTED TO THE VOTERS, IT
SHALL BE PRESENTED  AS  A  SEPARATE  PROPOSITION  IN  SUBSTANTIALLY  THE
FOLLOWING  FORM:  "SHALL  THE  __________  SCHOOL DISTRICT BE ALLOWED TO
INCREASE ITS TAX LEVY BY _____ PERCENT, DESPITE THE FACT THAT THE  MAXI-
MUM INCREASE OTHERWISE ALLOWED BY LAW AT THIS TIME IS ____ PERCENT?"
  (B)  ENROLLMENT  INCREASES.  IF  THE  RESIDENT  PUBLIC SCHOOL DISTRICT
ENROLLMENT, AS DEFINED BY PARAGRAPH N  OF  SUBDIVISION  ONE  OF  SECTION
THIRTY-SIX  HUNDRED  TWO  OF  THE  EDUCATION LAW, HAS INCREASED, THE TAX
LIMIT MAY BE INCREASED IN PROPORTION TO THE NET PERCENTAGE  INCREASE  IN
SUCH  ENROLLMENT. FOR THIS PURPOSE, ENROLLMENT INCREASES SHALL BE DETER-
MINED BY COMPARING THE ENROLLMENT AS OF THE SECOND SCHOOL YEAR PRECEDING
THE SCHOOL YEAR TO WHICH THE LIMITATIONS ARE TO APPLY, TO THE ENROLLMENT
AS OF THE SCHOOL YEAR IMMEDIATELY PRECEDING THE SCHOOL YEAR TO WHICH THE
LIMITATIONS ARE TO APPLY.
  (C) QUANTITY INCREASES. IF THE QUANTITY OF REAL  PROPERTY  WITHIN  THE
SCHOOL  DISTRICT HAS INCREASED DUE TO NEW CONSTRUCTION, IMPROVEMENTS, OR

A. 4135                             3

OTHER PHYSICAL CHANGES, THE TAX LIMIT MAY BE INCREASED IN PROPORTION  TO
THE  NET  PERCENTAGE  QUANTITY  INCREASE.  FOR  THIS  PURPOSE,  QUANTITY
INCREASES SHALL BE DETERMINED BY COMPARING  THE  QUANTITIES  AS  OF  THE
SECOND  FINAL  ASSESSMENT  ROLL PRECEDING THE FINAL ASSESSMENT ROLL UPON
WHICH TAXES ARE TO BE LEVIED, TO THE QUANTITIES AS OF THE FINAL  ASSESS-
MENT  ROLL  IMMEDIATELY  PRECEDING  THE FINAL ASSESSMENT ROLL UPON WHICH
TAXES ARE TO BE LEVIED. ASSESSORS SHALL CALCULATE QUANTITY INCREASES FOR
THIS PURPOSE AT THE WRITTEN REQUEST OF THE SCHOOL  AUTHORITIES,  IN  THE
MANNER PRESCRIBED BY THE STATE BOARD.
  3.  ERRONEOUS LEVIES. IN THE EVENT A SCHOOL DISTRICT'S ACTUAL TAX LEVY
FOR A GIVEN SCHOOL YEAR EXCEEDS THE MAXIMUM ALLOWABLE  LEVY  UNDER  THIS
SECTION  DUE  TO CLERICAL OR TECHNICAL ERRORS, THE SCHOOL DISTRICT SHALL
PLACE THE EXCESS AMOUNT OF THE LEVY IN RESERVE IN ACCORDANCE  WITH  SUCH
REQUIREMENTS  AS THE STATE COMPTROLLER MAY PRESCRIBE, AND SHALL USE SUCH
FUNDS AND ANY INTEREST EARNED THEREON TO OFFSET THE  TAX  LEVY  FOR  THE
FOLLOWING SCHOOL YEAR.
  4.  APPLICABILITY.  THE  PROVISIONS OF THIS SECTION SHALL APPLY TO ALL
SCHOOL DISTRICTS OTHER THAN CITY SCHOOL DISTRICTS WHICH ARE  SUBJECT  TO
ARTICLE FIFTY-TWO OF THE EDUCATION LAW.
  S 2. This act shall take effect immediately.

                                 PART B

  Section  1.    The  general  municipal  law is amended by adding a new
section 25 to read as follows:
  S 25. FUNDING OF MANDATES. 1. DEFINITIONS. AS USED  IN  THIS  SECTION,
THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS UNLESS THE CONTEXT
SHALL OTHERWISE REQUIRE:
  (A) "MANDATE" MEANS:
  (I)  ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM OR
REQUIRES A HIGHER LEVEL OF SERVICE  FOR  AN  EXISTING  PROGRAM  WHICH  A
MUNICIPAL CORPORATION IS REQUIRED TO PROVIDE; OR
  (II)  ANY  GENERAL  LAW  WHICH  GRANTS A NEW PROPERTY TAX EXEMPTION OR
INCREASES AN EXISTING PROPERTY TAX EXEMPTION WHICH THE MUNICIPAL  CORPO-
RATION IS REQUIRED TO PROVIDE.
  (B) "UNFUNDED MANDATE" SHALL MEAN:
  (I)  ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM OR
REQUIRES A HIGHER LEVEL OF SERVICE  FOR  AN  EXISTING  PROGRAM  WHICH  A
MUNICIPAL  CORPORATION IS REQUIRED TO PROVIDE AND WHICH RESULTS IN A NET
ADDITIONAL COST TO THE MUNICIPAL CORPORATION;
  (II) ANY ALTERATION IN FUNDING PROVIDED TO A MUNICIPAL CORPORATION FOR
THE PURPOSE OF DEFRAYING THE COSTS OF A PROGRAM WHICH IT IS REQUIRED  TO
PROVIDE,  THEREBY  RESULTING  IN  A NET ADDITIONAL COST TO THE MUNICIPAL
CORPORATION; OR
  (III) ANY GENERAL LAW WHICH GRANTS A NEW  PROPERTY  TAX  EXEMPTION  OR
INCREASES  AN EXISTING PROPERTY TAX EXEMPTION WHICH THE MUNICIPAL CORPO-
RATION IS REQUIRED TO PROVIDE, THEREBY RESULTING  IN  A  NET  ADDITIONAL
COST TO THE MUNICIPAL CORPORATION.
  (C)  "NET  ADDITIONAL COST" MEANS THE COST OR COSTS INCURRED OR ANTIC-
IPATED TO BE INCURRED WITHIN A ONE YEAR PERIOD BY A LOCAL GOVERNMENT  IN
PERFORMING  OR  ADMINISTERING  A MANDATE AFTER SUBTRACTING THEREFROM ANY
REVENUES RECEIVED OR RECEIVABLE BY THE LOCAL GOVERNMENT  ON  ACCOUNT  OF
THE MANDATED PROGRAM OR SERVICE, INCLUDING BUT NOT LIMITED TO:
  (I) FEES CHARGED TO THE RECIPIENTS OF THE MANDATED PROGRAM OR SERVICE;
  (II)  STATE  OR  FEDERAL  AID  PAID  SPECIFICALLY  OR CATEGORICALLY IN
CONNECTION WITH THE PROGRAM OR SERVICE; AND

A. 4135                             4

  (III) AN OFFSETTING SAVINGS RESULTING FROM THE  DIMINUTION  OR  ELIMI-
NATION  OF  ANY  OTHER  PROGRAM  OR SERVICE DIRECTLY ATTRIBUTABLE TO THE
PERFORMANCE OR ADMINISTRATION OF THE MANDATED PROGRAM.
  2.  FUNDING  OF  MUNICIPAL  CORPORATION  MANDATES. NOTWITHSTANDING ANY
OTHER PROVISION OF LAW, NO  UNFUNDED  MANDATE  SHALL  BE  ENACTED  WHICH
CREATES  AN  ANNUAL  NET ADDITIONAL COST TO ANY MUNICIPAL CORPORATION IN
EXCESS OF TEN THOUSAND DOLLARS OR AN  AGGREGATE  ANNUAL  NET  ADDITIONAL
COST TO ALL MUNICIPAL CORPORATIONS IN EXCESS OF ONE MILLION DOLLARS.
  3.  EXEMPTIONS  TO  THE  FUNDING  OF  MUNICIPAL  CORPORATION  MANDATES
REQUIREMENT. (A) THE STATE SHALL NOT BE REQUIRED  TO  FUND  ANY  NEW  OR
EXPANDED PROGRAMS IF:
  (I) THE MANDATE IS REQUIRED BY A COURT ORDER OR JUDGMENT;
  (II)  THE  MANDATE  IS  PROVIDED AT THE OPTION OF THE LOCAL GOVERNMENT
UNDER A LAW, REGULATION, RULE, OR ORDER THAT IS PERMISSIVE  RATHER  THAN
MANDATORY;
  (III)  THE  MANDATE  RESULTS  FROM  THE PASSAGE OF A HOME RULE MESSAGE
WHEREBY A LOCAL GOVERNMENT REQUESTS AUTHORITY TO IMPLEMENT  THE  PROGRAM
OR  SERVICE SPECIFIED IN THE STATUTE, AND THE STATUTE IMPOSES COSTS ONLY
UPON THAT LOCAL GOVERNMENT WHICH REQUESTS THE AUTHORITY  TO  IMPOSE  THE
PROGRAM OR SERVICE;
  (IV) THE MANDATE IS REQUIRED BY, OR ARISES FROM, AN EXECUTIVE ORDER OF
THE GOVERNOR EXERCISING HIS OR HER EMERGENCY POWERS; OR
  (V)  THE MANDATE IS REQUIRED BY STATUTE OR EXECUTIVE ORDER THAT IMPLE-
MENTS A FEDERAL LAW OR REGULATION AND RESULTS FROM COSTS MANDATED BY THE
FEDERAL GOVERNMENT TO BE BORNE AT THE LOCAL LEVEL, UNLESS THE STATUTE OR
EXECUTIVE ORDER RESULTS IN COSTS WHICH EXCEED THE COSTS MANDATED BY  THE
FEDERAL GOVERNMENT.
  (B)  EACH  ACT ESTABLISHING A MANDATE SHALL PROVIDE THAT THE EFFECTIVE
DATE OF ANY SUCH MANDATE IMPOSED  ON  MUNICIPAL  CORPORATIONS  SHALL  BE
CONSISTENT  WITH  THE  NEEDS  OF THE STATE AND MUNICIPAL CORPORATIONS TO
PLAN IMPLEMENTATION THEREOF AND  CONSISTENT  WITH  THE  AVAILABILITY  OF
REQUIRED FUNDS.
  S  2.  The  education law is amended by adding a new section 1527-a to
read as follows:
  S 1527-A. FUNDING OF MANDATES IMPOSED ON SCHOOL DISTRICTS. 1.    DEFI-
NITIONS.  AS  USED  IN  THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS UNLESS THE CONTEXT SHALL OTHERWISE REQUIRE:
  (A) "MANDATE" MEANS:
  (I) ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM  OR
REQUIRES  A  HIGHER  LEVEL  OF  SERVICE  FOR AN EXISTING PROGRAM WHICH A
SCHOOL DISTRICT ORGANIZED EITHER BY SPECIAL  LAWS  OR  PURSUANT  TO  THE
PROVISIONS OF A GENERAL LAW, IS REQUIRED TO PROVIDE; OR
  (II)  ANY  GENERAL  LAW  WHICH  GRANTS A NEW PROPERTY TAX EXEMPTION OR
INCREASES AN EXISTING PROPERTY  TAX  EXEMPTION  WHICH  ANY  SUCH  SCHOOL
DISTRICT IS REQUIRED TO PROVIDE.
  (B) "UNFUNDED MANDATE" SHALL MEAN:
  (I)  ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM OR
REQUIRES A HIGHER LEVEL OF SERVICE FOR AN  EXISTING  PROGRAM  WHICH  ANY
SUCH  SCHOOL  DISTRICT IS REQUIRED TO PROVIDE AND WHICH RESULTS IN A NET
ADDITIONAL COST TO SUCH SCHOOL DISTRICT;
  (II) ANY ALTERATION IN FUNDING PROVIDED TO ANY  SUCH  SCHOOL  DISTRICT
FOR THE PURPOSE OF DEFRAYING THE COSTS OF A PROGRAM WHICH IT IS REQUIRED
TO  PROVIDE,  THEREBY  RESULTING IN A NET ADDITIONAL COST TO SUCH SCHOOL
DISTRICT; OR
  (III) ANY GENERAL LAW WHICH GRANTS A NEW  PROPERTY  TAX  EXEMPTION  OR
INCREASES  AN  EXISTING  PROPERTY  TAX  EXEMPTION  WHICH ANY SUCH SCHOOL

A. 4135                             5

DISTRICT IS REQUIRED TO PROVIDE, THEREBY RESULTING IN A  NET  ADDITIONAL
COST TO SUCH SCHOOL DISTRICT.
  (C)  "NET  ADDITIONAL COST" MEANS THE COST OR COSTS INCURRED OR ANTIC-
IPATED TO BE INCURRED WITHIN A ONE YEAR PERIOD BY A SCHOOL  DISTRICT  IN
PERFORMING  OR  ADMINISTERING  A MANDATE AFTER SUBTRACTING THEREFROM ANY
REVENUES RECEIVED OR RECEIVABLE BY THE SCHOOL DISTRICT ON ACCOUNT OF THE
MANDATED PROGRAM OR SERVICE, INCLUDING BUT NOT LIMITED TO:
  (I) FEES CHARGED TO THE RECIPIENTS OF THE MANDATED PROGRAM OR SERVICE;
  (II) STATE OR  FEDERAL  AID  PAID  SPECIFICALLY  OR  CATEGORICALLY  IN
CONNECTION WITH THE PROGRAM OR SERVICE; AND
  (III)  AN  OFFSETTING  SAVINGS RESULTING FROM THE DIMINUTION OR ELIMI-
NATION OF ANY OTHER PROGRAM OR  SERVICE  DIRECTLY  ATTRIBUTABLE  TO  THE
PERFORMANCE OR ADMINISTRATION OF THE MANDATED PROGRAM.
  2.  FUNDING  OF  SCHOOL  DISTRICT  MANDATES. NOTWITHSTANDING ANY OTHER
PROVISION OF LAW, NO UNFUNDED MANDATE SHALL BE ENACTED WHICH CREATES  AN
ANNUAL NET ADDITIONAL COST TO ANY SCHOOL DISTRICT IN EXCESS OF TEN THOU-
SAND  DOLLARS  OR  AN AGGREGATE ANNUAL NET ADDITIONAL COST TO ALL SCHOOL
DISTRICTS IN EXCESS OF ONE MILLION DOLLARS.
  3. EXEMPTIONS TO THE FUNDING OF SCHOOL DISTRICT MANDATES  REQUIREMENT.
(A) THE STATE SHALL NOT BE REQUIRED TO FUND ANY NEW OR EXPANDED PROGRAMS
FOR SCHOOL DISTRICTS IF:
  (I) THE MANDATE IS REQUIRED BY A COURT ORDER OR JUDGMENT;
  (II)  THE  MANDATE  IS  PROVIDED  AT THE OPTION OF THE SCHOOL DISTRICT
UNDER A LAW, REGULATION, RULE, OR ORDER THAT IS PERMISSIVE  RATHER  THAN
MANDATORY;
  (III)  THE  MANDATE  RESULTS  FROM  THE PASSAGE OF A HOME RULE MESSAGE
WHEREBY A SCHOOL DISTRICT REQUESTS AUTHORITY TO IMPLEMENT THE PROGRAM OR
SERVICE SPECIFIED IN THE STATUTE, AND THE  STATUTE  IMPOSES  COSTS  ONLY
UPON  THAT  SCHOOL  DISTRICT  WHICH REQUESTS THE AUTHORITY TO IMPOSE THE
PROGRAM OR SERVICE;
  (IV) THE MANDATE IS REQUIRED BY, OR ARISES FROM, AN EXECUTIVE ORDER OF
THE GOVERNOR EXERCISING HIS OR HER EMERGENCY POWERS; OR
  (V) THE MANDATE IS REQUIRED BY STATUTE OR EXECUTIVE ORDER THAT  IMPLE-
MENTS A FEDERAL LAW OR REGULATION AND RESULTS FROM COSTS MANDATED BY THE
FEDERAL GOVERNMENT TO BE BORNE AT THE LOCAL LEVEL, UNLESS THE STATUTE OR
EXECUTIVE  ORDER RESULTS IN COSTS WHICH EXCEED THE COSTS MANDATED BY THE
FEDERAL GOVERNMENT.
  (B) EACH ACT ESTABLISHING A MANDATE SHALL PROVIDE THAT  THE  EFFECTIVE
DATE OF ANY SUCH MANDATE IMPOSED ON SCHOOL DISTRICTS SHALL BE CONSISTENT
WITH  THE NEEDS OF THE STATE AND SCHOOL DISTRICTS TO PLAN IMPLEMENTATION
THEREOF, AND ALSO CONSISTENT WITH THE AVAILABILITY OF REQUIRED FUNDS.
  S 3.  The legislative law is amended by adding a new section  52-a  to
read as follows:
  S  52-A.  REQUIREMENTS WITH RESPECT TO BILLS MANDATING EXPENDITURES OR
APPROPRIATIONS. A BILL THAT ENACTS OR AMENDS ANY EXPENDITURES OR  APPRO-
PRIATIONS  SHALL  STATE THE ESTIMATED COST OF SUCH EXPENDITURE OR APPRO-
PRIATION IN THE BODY OF THE BILL.
  S 4. Section 215-b of the education law, as amended by chapter 301  of
the laws of 1996, is amended to read as follows:
  S 215-b. Annual  report  by  commissioner to governor and legislature.
The commissioner shall prepare and submit to the governor, the president
pro tem of the senate and the speaker of the  assembly  not  later  than
January first, nineteen hundred ninety-six and by the first day of Janu-
ary  in  each  year  thereafter,  a  report  detailing the financial and
statistical outcomes of boards of cooperative educational services which
shall[, at minimum,] set forth with  respect  to  the  preceding  school

A. 4135                             6

year[:  tuition  costs  for  selected  programs; standard per pupil cost
information for selected services as determined by the commissioner; and
aggregate expenditure data for the following categories: administration,
instructional  services,  career  education, special education, rent and
facilities and other services; and  such  other  information  as  deemed
appropriate]  INFORMATION  NECESSARY  TO  ASSURE  THE  ACCOUNTABILITY OF
BOARDS OF COOPERATIVE EDUCATIONAL SERVICES FOR ITS FISCAL  AND  PROGRAM-
MATIC  RESOURCES,  AS  SET  FORTH IN REGULATIONS TO BE PRESCRIBED by the
commissioner. The format for such report shall be developed in consulta-
tion with school district officials and  the  director  of  the  budget.
Such  report will include changes from the year prior to the report year
for each such item for all boards of cooperative  educational  services.
WHERE  APPLICABLE,  SUCH REPORT SHALL BE SUBMITTED ELECTRONICALLY TO THE
DEPARTMENT OVER THE INTERNET THROUGH A SECURE WEBPAGE AS  SET  FORTH  IN
REGULATIONS TO BE PRESCRIBED BY THE COMMISSIONER. THIS ELECTRONIC REPORT
SHALL  TAKE  THE  PLACE  OF FILING PAPER COPIES OF SUCH REPORT EXCEPT IN
CIRCUMSTANCES WHERE AN ORIGINAL SIGNATURE  IS  REQUIRED,  THEN  ORIGINAL
PAPER COPIES MUST BE FILED.  THE COMMISSIONER SHALL PROMULGATE ALL RULES
AND  REGULATIONS  NECESSARY  TO  IMPLEMENT THE ELECTRONIC FILING OF SUCH
REPORT. Such report shall be distributed to  all  school  districts  and
boards  of  cooperative educational services and shall be made available
to all other interested parties upon request.
  S 5. Subdivision 32 of section 305 of the education  law  is  REPEALED
and two new subdivisions 32 and 32-a are added to read as follows:
  32.  A. THE COMMISSIONER SHALL, TO THE EXTENT PRACTICABLE AND CONSIST-
ENT WITH FEDERAL AND STATE LAW,  ELIMINATE  OR  STREAMLINE  PROGRAMMATIC
REPORTING,  PLANNING  AND  APPLICATION  REQUIREMENTS  IMPOSED  ON SCHOOL
DISTRICTS AND BOARDS OF COOPERATIVE EDUCATIONAL SERVICES,  IN  ORDER  TO
ELIMINATE  OR MINIMIZE THE PRODUCTION OF REPORTS, APPLICATIONS AND PLANS
THAT CONTAIN DUPLICATIVE INFORMATION.  WHERE APPLICABLE, THE COMMISSION-
ER SHALL REQUIRE THAT ALL SUCH REPORTS, APPLICATIONS AND PLANS SHALL  BE
SUBMITTED  ELECTRONICALLY  TO THE DEPARTMENT OVER THE INTERNET THROUGH A
SECURE WEBPAGE. THESE ELECTRONIC REPORTS, APPLICATIONS AND  PLANS  SHALL
TAKE  THE PLACE OF FILING PAPER COPIES OF SUCH REPORTS, APPLICATIONS AND
PLANS EXCEPT IN CIRCUMSTANCES WHERE AN ORIGINAL SIGNATURE  IS  REQUIRED,
THEN  ORIGINAL  PAPER  COPIES  MUST  BE  FILED.   THE COMMISSIONER SHALL
PROMULGATE ALL RULES AND REGULATIONS NECESSARY TO  IMPLEMENT  THE  ELEC-
TRONIC FILING OF SUCH REPORTS, APPLICATIONS AND PLANS.  THE COMMISSIONER
SHALL REQUIRE ALL SCHOOL DISTRICTS AND BOARDS OF COOPERATIVE EDUCATIONAL
SERVICES  TO  COMPRESS  ALL  DISTRICTWIDE  PLANNING  REQUIREMENTS INTO A
SINGLE DISTRICTWIDE COMPREHENSIVE PLAN, WHICH AT A MINIMUM SHALL INCLUDE
THE COMPONENTS PRESCRIBED BY THE COMMISSIONER, INCLUDING BUT NOT LIMITED
TO THE DISTRICTWIDE LONG-RANGE CAPITAL FACILITIES PLAN,  AND  APPLICABLE
CURRENT FEDERAL REQUIREMENTS. IN THE CASE OF THE CITY SCHOOL DISTRICT OF
THE  CITY OF NEW YORK, A DISTRICTWIDE COMPREHENSIVE PLAN SHALL BE DEVEL-
OPED FOR THE CITY SCHOOL DISTRICT, EACH COMMUNITY SCHOOL  DISTRICT,  AND
THE  DISTRICTS  OR OTHER ADMINISTRATIVE DIVISIONS RESPONSIBLE FOR OPERA-
TION OF NEW YORK  CITY  PUBLIC  SCHOOLS.  THE  COMMISSIONER  SHALL  ALSO
REQUIRE  ALL  SCHOOL  DISTRICTS  AND  BOARDS  OF COOPERATIVE EDUCATIONAL
SERVICES TO COMPRESS ALL BUILDING LEVEL  PLANNING  REQUIREMENTS  INTO  A
SINGLE  BUILDING  LEVEL  COMPREHENSIVE  PLAN,  WHICH AT A MINIMUM, SHALL
INCLUDE THE COMPONENTS PRESCRIBED BY  THE  COMMISSIONER  AND  APPLICABLE
CURRENT  FEDERAL  REQUIREMENTS.  IT SHALL BE THE DUTY OF THE TRUSTEES OR
BOARD OF EDUCATION OF EVERY SCHOOL DISTRICT AND OF  THE  CHANCELLOR  AND
EACH  COMMUNITY DISTRICT EDUCATIONAL COUNCIL IN THE CITY SCHOOL DISTRICT
OF THE CITY OF NEW YORK AND OF EVERY BOARD  OF  COOPERATIVE  EDUCATIONAL

A. 4135                             7

SERVICES TO ASSURE THAT ALL COMPONENTS OF THE DISTRICTWIDE COMPREHENSIVE
PLAN  AND EACH BUILDING LEVEL COMPREHENSIVE PLAN ARE AS FULLY INTEGRATED
AND CONSISTENT AS PRACTICABLE, AND  THAT  SUCH  PLANS  ARE  CONTINUOUSLY
REVIEWED, REFLECT ONGOING ANALYSES OF CURRENT TEACHING AND LEARNING DATA
AND  ARE  UPDATED ON AT LEAST AN ANNUAL BASIS. NOTWITHSTANDING ANY OTHER
PROVISION OF LAW, RULE OR REGULATION TO THE CONTRARY, ANY SEPARATE  PLAN
REQUIREMENTS  IMPOSED UNDER THIS CHAPTER OR ANY RULE OR REGULATION SHALL
BE DEEMED TO BE FULFILLED BY INCLUSION OF SUCH PLAN IN THE COMPREHENSIVE
DISTRICTWIDE OR BUILDING LEVEL PLAN, PROVIDED THAT ALL REQUIRED INFORMA-
TION IS INCLUDED IN THE APPLICABLE COMPREHENSIVE PLAN.
  B. THE COMMISSIONER SHALL REQUIRE THE TRUSTEES OR BOARD  OF  EDUCATION
OF   EVERY  SCHOOL  DISTRICT  AND  THE  CHANCELLOR  AND  EACH  COMMUNITY
DISTRICT-EDUCATIONAL COUNCIL IN THE CITY SCHOOL DISTRICT OF THE CITY  OF
NEW YORK AND EVERY BOARD OF COOPERATIVE EDUCATIONAL SERVICES TO MAKE ITS
DISTRICTWIDE  COMPREHENSIVE  PLAN  AND EACH BUILDING LEVEL COMPREHENSIVE
PLAN AVAILABLE TO THE PUBLIC, EXCEPT WHERE SUCH PLANS  CONTAIN  INFORMA-
TION  THAT  IS CONFIDENTIAL AND NOT SUBJECT TO DISCLOSURE UNDER STATE OR
FEDERAL LAW. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE  OR  REGU-
LATION  TO  THE  CONTRARY,  ANY  SCHOOL DISTRICT OR BOARD OF COOPERATIVE
EDUCATIONAL SERVICES THAT MAKES ITS  COMPREHENSIVE  DISTRICTWIDE  AND/OR
BUILDING  LEVEL  PLANS PUBLICLY AVAILABLE ELECTRONICALLY THROUGH POSTING
ON ITS WEBSITE SHALL BE DEEMED TO HAVE FILED SUCH PLANS WITH THE DEPART-
MENT AS OF THE DATE OF POSTING AND SHALL NOT BE REQUIRED  TO  SEPARATELY
REPORT  THE  INFORMATION  CONTAINED  IN  SUCH  PLANS  TO THE DEPARTMENT,
PROVIDED THAT SUCH DISTRICT OR BOARD OF COOPERATIVE EDUCATIONAL SERVICES
REPORTS SUCH POSTING TO THE DEPARTMENT, WITH THE WEB  ADDRESS  AT  WHICH
SUCH  PLANS  ARE  AVAILABLE, IN THE MANNER PRESCRIBED BY THE DEPARTMENT,
AND PROVIDED FURTHER THAT NOTHING HEREIN SHALL PRECLUDE  THE  DEPARTMENT
FROM  REQUIRING  AMENDMENT  OF  A  PLAN  OR THE SUBMISSION OF ADDITIONAL
INFORMATION WHERE IT DETERMINES THAT THE INFORMATION IN  THE  COMPREHEN-
SIVE  PLANS  IS  NOT CURRENT OR COMPLETE OR OTHERWISE SUFFICIENT TO MEET
STATUTORY OR REGULATORY REQUIREMENTS.
  32-A. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRA-
RY, THE COMMISSIONER SHALL BE AUTHORIZED AND DIRECTED TO  GRANT  WAIVERS
PURSUANT  TO  THIS  SUBDIVISION  FROM  ANY ANNUAL REPORTING REQUIREMENTS
IMPOSED ON SCHOOL DISTRICTS UNDER THIS CHAPTER, IN  WHOLE  OR  IN  PART,
PROVIDED  SUCH WAIVERS APPLY TO ALL SCHOOL DISTRICTS AND DO NOT CONFLICT
WITH FEDERAL REQUIREMENTS. SUCH WAIVERS MAY BE GRANTED UPON FINDINGS  BY
THE COMMISSIONER THAT:
  A.  THE  PURPOSES  OF  THE  REPORT  CAN  BE  SUBSTANTIALLY MET THROUGH
SUBMISSION OF A REPORT ON A TWO-YEAR, THREE-YEAR OR FIVE-YEAR BASIS,  AS
SPECIFIED  BY  THE  COMMISSIONER,  TAKING INTO ACCOUNT OTHER ANNUAL DATA
REPORTING REQUIREMENTS AND INFORMATION MADE PUBLICLY  AVAILABLE  BY  THE
SCHOOL DISTRICT ON AN ANNUAL BASIS; AND
  B.  THE  REPORT OR PORTION OF THE REPORT BEING WAIVED DOES NOT CONTAIN
FISCAL OR OTHER DATA OR INFORMATION NEEDED  FOR  PURPOSES  OF  COMPUTING
STATE  OR  FEDERAL  AID  OR  FOR  PURPOSES  OF SCHOOL OR SCHOOL DISTRICT
ACCOUNTABILITY OR FOR AUDIT PURPOSES.
  S 6. Paragraph c of subdivision 4 of section  1950  of  the  education
law,  as  amended by chapter 301 of the laws of 1996, is amended to read
as follows:
  c. Make or cause to be made surveys to determine the need for  cooper-
ative  educational  services in the supervisory district and present the
findings of their surveys to local school  authorities.  Each  board  of
cooperative  educational services shall prepare long range program plans
to meet the projected need for such cooperative educational services  in

A. 4135                             8

the  supervisory district for the next five years as may be specified by
the commissioner, and shall [submit] INCORPORATE such plans [and  there-
after  annual  revisions  of such plans to the commissioner on or before
the  first  day  of December of each year, except that special education
and career education program plans, in a form specified by  the  commis-
sioner, shall be submitted every two years, no later than the date spec-
ified by the commissioner, and revised annually] INTO THE BOARD OF COOP-
ERATIVE  EDUCATIONAL  SERVICES  DISTRICTWIDE COMPREHENSIVE PLAN.   WHERE
APPLICABLE, THE COMMISSIONER SHALL REQUIRE THAT ALL SUCH PLANS SHALL  BE
SUBMITTED  ELECTRONICALLY  TO THE DEPARTMENT OVER THE INTERNET THROUGH A
SECURE WEBPAGE. THIS ELECTRONIC PLAN SHALL  TAKE  THE  PLACE  OF  FILING
PAPER  COPIES  OF  SUCH  PLAN  EXCEPT IN CIRCUMSTANCES WHERE AN ORIGINAL
SIGNATURE IS REQUIRED, THEN ORIGINAL PAPER COPIES MUST BE  FILED.    THE
COMMISSIONER  SHALL  PROMULGATE  ALL  RULES AND REGULATIONS NECESSARY TO
IMPLEMENT THE ELECTRONIC FILING OF SUCH PLAN.
  S 7. Paragraph b of subdivision 8 of section  3602  of  the  education
law,  as  amended  by  section 16 of part B of chapter 57 of the laws of
2007, is amended to read as follows:
  b. District plans of service. Any school district receiving  an  addi-
tional  apportionment  pursuant  to  subdivision ten of this section for
pupils in career education programs or a payment in lieu of such  appor-
tionment  or having a public excess cost aid setaside pursuant to subdi-
vision four of this section shall keep on file and  make  available  for
public  inspection  and  review by the commissioner AND INCORPORATE INTO
ITS DISTRICTWIDE  COMPREHENSIVE  PLAN  an  acceptable  plan  of  service
describing  the  student  outcomes  expected  from implementation of the
proposed plan, provided that such plan may be incorporated into a school
district's district-wide comprehensive plan. The plan of service submit-
ted by a school district receiving an additional apportionment  pursuant
to  this  section  for  pupils with disabilities shall also describe how
such district intends to ensure that all instructional materials  to  be
used  in the schools of such district will be made available in a usable
alternative format for each student  with  a  disability  and  for  each
student  who  is  a  qualified individual with a disability, at the same
time as such  instructional  materials  are  available  to  non-disabled
students,  provided  that  such  plan  may  incorporate by reference the
alternative format plans developed pursuant to subdivision twenty-nine-a
of section sixteen hundred four, subdivision four-a of section seventeen
hundred nine, subdivision seven-a of section twenty-five  hundred  three
or subdivision seven-a of section twenty-five hundred fifty-four of this
chapter.  Such  plans shall be in a form prescribed by the commissioner,
and except as heretofore provided, shall have the content prescribed  by
the commissioner.  WHERE APPLICABLE, THE COMMISSIONER SHALL REQUIRE THAT
ALL  SUCH PLANS SHALL BE SUBMITTED ELECTRONICALLY TO THE DEPARTMENT OVER
THE INTERNET THROUGH A SECURE WEBPAGE. THIS ELECTRONIC PLAN  SHALL  TAKE
THE  PLACE  OF  FILING PAPER COPIES OF SUCH PLAN EXCEPT IN CIRCUMSTANCES
WHERE AN ORIGINAL SIGNATURE IS REQUIRED, THEN ORIGINAL PAPER COPIES MUST
BE FILED.  THE COMMISSIONER SHALL PROMULGATE ALL RULES  AND  REGULATIONS
NECESSARY  TO  IMPLEMENT THE ELECTRONIC FILING OF SUCH PLAN. The commis-
sioner may, from time to time,  require  amendments  of  such  plans  as
deemed  to  be  necessary  and  appropriate  to  further the educational
welfare of the pupils involved.
  S 8. Within one year of the effective date of this  act,  the  commis-
sioner  of education shall issue a report to the governor and the legis-
lature detailing the reporting requirements that  have  been  eliminated
under  this  act.  Such report shall include specific statutory require-

A. 4135                             9

ments, reports, and regulatory requirements that have been eliminated or
rendered null and void as a result of the provisions of this act.  Where
applicable, the commissioner of education shall require that such report
shall be submitted electronically to the state education department over
the internet through a secure webpage. This electronic report shall take
the  place of filing paper copies of such report except in circumstances
where an original signature is required, then original paper copies must
be filed.  The commissioner of education shall promulgate all rules  and
regulations necessary to implement the electronic filing of such report.
  S  9.  The  education  law is amended by adding a new section 207-b to
read as follows:
  S 207-B.  EFFECTIVENESS  OF  ADDITIONAL  COSTS  TO  SCHOOL  DISTRICTS.
NOTWITHSTANDING  ANY OTHER PROVISION OF LAW TO THE CONTRARY, ANY POLICY,
RULE OR REGULATION ADOPTED BY THE BOARD OF REGENTS THAT CREATES AN ANNU-
AL NET ADDITIONAL COST TO ANY SCHOOL DISTRICT IN EXCESS OF TEN  THOUSAND
DOLLARS  OR  AN  AGGREGATE  ANNUAL  NET  ADDITIONAL  COST  TO ALL SCHOOL
DISTRICTS IN EXCESS OF ONE MILLION DOLLARS TO BE APPROVED BY  THE  STATE
LEGISLATURE  AND  SIGNED  INTO LAW BY THE GOVERNOR SHALL NOT TAKE EFFECT
UNTIL THE NEXT SCHOOL YEAR AFTER IT HAS BECOME A LAW.
  S 10. Section 3602 of the education law is amended  by  adding  a  new
subdivision 40 to read as follows:
  40.  AID  FOR  FOURTH AND EIGHTH GRADE STUDENT TESTING. IN ADDITION TO
ANY OTHER  APPORTIONMENT  UNDER  THIS  SECTION,  FOR  THE  TWO  THOUSAND
TEN--TWO  THOUSAND  ELEVEN SCHOOL YEAR AND THEREAFTER, A SCHOOL DISTRICT
SHALL BE ELIGIBLE FOR REIMBURSEMENT UNDER THE PROVISIONS OF THIS  SUBDI-
VISION  EQUAL TO ONE HUNDRED PERCENT OF ALL COST INCURRED BY SUCH SCHOOL
DISTRICT ASSOCIATED WITH FOURTH AND EIGHTH GRADE STUDENT TESTING.   SUCH
REIMBURSEMENT SHALL BE PROVIDED IN THE SAME MANNER AS OTHER REIMBURSABLE
AID CATEGORIES.
  S  11.  This  act  shall  take effect on the one hundred eightieth day
after it shall have become a law; provided, however, that:
  1. sections one and two of this act shall take effect  April  1,  2010
and  shall  apply  to  any  general  or special law imposing mandates on
municipal corporations or school districts  enacted  on  or  after  such
effective date;
  2. section three of this act shall take effect on the first of January
next succeeding the date on which it shall have become a law; and
  3.  section  four  of  this  act, subdivision 32 of section 305 of the
education law, as repealed and added by section five of  this  act,  and
sections  six  and  seven  of this act shall take effect on the first of
July next succeeding the date on which it  shall  become  a  law.    The
commissioner  of  education  is  authorized  and directed to promulgate,
amend and/or repeal any rule or regulation necessary for the implementa-
tion of this act on its effective date on or before such effective date.

                                 PART C

  Section 1. Legislative intent. The  legislature  finds  that  Medicaid
waste,  fraud  and abuse increases for New York taxpayers statewide each
year. This act will continue to make Medicaid reform a top  priority  in
the hopes of saving each property taxpayer in New York state. The legis-
lature  believes  that all savings recouped from the Medicaid reforms in
this act should be returned to the taxpayers in the form of property tax
relief.
  S 2. Section 365-a of the social services law is amended by  adding  a
new subdivision 8 to read as follows:

A. 4135                            10

  8.  (A)  NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS SECTION OR
OF ANY OTHER PROVISION OF LAW, THE STATE IS HEREBY AUTHORIZED TO ALLEVI-
ATE THE COUNTY COST OF MEDICAL ASSISTANCE PAYMENTS AND TO PROVIDE FISCAL
RELIEF TO EACH LOCAL SOCIAL SERVICES DISTRICT BY  ASSUMING  EXPENDITURES
FOR  ALL  OPTIONAL SERVICES OFFERED BY THE MEDICAL ASSISTANCE PROGRAM IN
THE STATE. THE STATE SHALL PHASE-IN SUCH FISCAL RELIEF OVER A  FIVE-YEAR
PERIOD  AND ANY SAVINGS A LOCAL SOCIAL SERVICES DISTRICT REALIZES AT THE
END OF SUCH FIVE-YEAR PERIOD SHALL BE REIMBURSED  TO  THE  LOCAL  SOCIAL
SERVICES  DISTRICT  AND/OR  COUNTY  TO  OFFSET THE COST OF REAL PROPERTY
TAXES. SUCH OPTIONAL SERVICES THAT THE STATE SHALL ASSUME  THE  EXPENDI-
TURES  FOR ARE THOSE OPTIONAL SERVICES PROVIDED BY APPLICABLE STATE LAW.
ANY FEDERALLY MANDATED MEDICAL ASSISTANCE SERVICES ARE EXEMPT  FROM  THE
PROVISIONS OF THIS SUBDIVISION.
  (B)  THE COMMISSIONER OF HEALTH IS AUTHORIZED TO APPLY FOR ANY AND ALL
FEDERAL WAIVERS REQUIRED TO IMPLEMENT THE PROVISIONS  OF  THIS  SUBDIVI-
SION.
  S  3.  Subdivision  1  of  section 368-a of the social services law is
amended by adding a new paragraph (z) to read as follows:
  (Z) (I) NOTWITHSTANDING ANY OTHER PROVISION OF LAW,  THE  FULL  AMOUNT
EXPENDED  BY  THE  LOCAL SOCIAL SERVICES DISTRICT FOR MEDICAL ASSISTANCE
FRAUD, WASTE AND ABUSE INVESTIGATIONS VIA THE USE OF DATA  MINING  SOFT-
WARE  SHALL  BE  REIMBURSED  BY  THE  STATE IF THE COUNTY HAS PREVIOUSLY
PURCHASED OR INTENDS TO PURCHASE SUCH SOFTWARE. FOR THE PURPOSES OF THIS
PARAGRAPH, "DATA MINING SOFTWARE" SHALL MEAN A DATABASE APPLICATION THAT
UTILIZES ADVANCED DATA SEARCHING CAPABILITIES AND  STATISTICAL  ANALYSES
TO  DISCOVER  PATTERNS  AND CORRELATIONS IN THE USE AND ABUSE OF MEDICAL
ASSISTANCE PRACTICES. ANY COUNTY  THAT  HAS  PREVIOUSLY  PURCHASED  SUCH
SOFTWARE  MUST  SUPPLY  ADEQUATE  DOCUMENTATION, INCLUDING ANY RECEIPTS,
THAT DETAILS SUCH PURCHASE. THE STATE SHALL DISPERSE GRANTS, WHEN APPLI-
CABLE, FROM THE GENERAL FUND FOR THIS PURPOSE.
  (II) THE COMMISSIONER OF HEALTH MAY DEVELOP RULES AND  REGULATIONS  AS
NECESSARY TO CARRY OUT THE PROVISIONS OF THIS PARAGRAPH.
  S 4. This act shall take effect immediately.

                                 PART D

  Section  1.   Legislative findings and intent. Public school districts
in New York state have recently experienced numerous instances of finan-
cial scandals. These scandals have been unprecedented in both the number
and diversity  of  financial  malfeasance.  Furthermore,  such  scandals
result  in  the  diversion of hard-earned property taxpayers' money from
their proper use in school instruction to improper and illegal  purposes
that do not further the school districts' essential mission of educating
New  York children.   Therefore, the legislature finds that it is neces-
sary to establish a new, independent state agency charged with the func-
tion of investigating allegations of  corruption,  financial  improprie-
ties,  unethical  conduct,  misconduct  or other criminal conduct within
public school districts outside of  New  York  city.  In  addition,  the
legislature  further  finds  that  the  current  laws must be amended to
incorporate school district financial safeguards and establish sanctions
for violations of school district finance laws.
  S 2. The education law is amended by adding a new  section  2116-d  to
read as follows:
  S  2116-D. PERSONS AND OFFICIALS REQUIRED TO REPORT CASES OF SUSPECTED
CORRUPTION, OTHER CRIMINAL ACTIVITY OR CONFLICT  OF  INTEREST  OCCURRING
WITHIN THE OPERATIONS OF A SCHOOL DISTRICT. 1. THE FOLLOWING PERSONS AND

A. 4135                            11

OFFICIALS ARE REQUIRED TO REPORT OR CAUSE A REPORT TO BE MADE IN ACCORD-
ANCE WITH THIS SECTION WHEN THEY DISCOVER INFORMATION CONCERNING CONDUCT
WHICH  IS  KNOWN  OR SHOULD REASONABLY BE KNOWN TO INVOLVE CORRUPTION OR
OTHER  CRIMINAL  ACTIVITY  OR  CONFLICT  OF  INTEREST BY EITHER A PUBLIC
SCHOOL DISTRICT EMPLOYEE THAT  RELATES  TO  THEIR  EMPLOYMENT  OR  BY  A
PERSON, PERSONS OR ENTITIES DOING BUSINESS WITH A PUBLIC SCHOOL DISTRICT
WITH  RESPECT TO THEIR TRANSACTIONS WITH THE SCHOOL DISTRICT, ANY SCHOOL
DISTRICT OFFICER, AND ANY SCHOOL DISTRICT EMPLOYEE.
  2. ANY PERSON OR  OFFICIAL  MANDATED  TO  REPORT  CASES  OF  SUSPECTED
CORRUPTION,  OTHER CRIMINAL ACTIVITY OR CONFLICT OF INTEREST PURSUANT TO
SUBDIVISION ONE OF THIS SECTION SHALL IMMEDIATELY REPORT THE INFORMATION
THEY HAVE TO THE NEW YORK STATE  INSPECTOR  GENERAL  FOR  EDUCATION,  AS
ESTABLISHED IN ARTICLE FOUR-B OF THE EXECUTIVE LAW.
  3.  ANY  SCHOOL  DISTRICT  WHICH  EMPLOYS  PERSONS  MANDATED TO REPORT
SUSPECTED INCIDENTS OF CORRUPTION, OTHER CRIMINAL ACTIVITY  OR  CONFLICT
OF  INTEREST  PURSUANT  TO SUBDIVISION ONE OF THIS SECTION SHALL PROVIDE
SUCH CURRENT AND NEW EMPLOYEES WITH WRITTEN INFORMATION  EXPLAINING  THE
REPORTING REQUIREMENTS SET OUT IN SUBDIVISION ONE OF THIS SECTION.
  4.  ANY  PERSON OR OFFICIAL REQUIRED BY THIS SECTION TO REPORT CERTAIN
INFORMATION AS SPECIFIED IN THIS SECTION WHO WILLFULLY FAILS  TO  DO  SO
SHALL BE GUILTY OF A CLASS A MISDEMEANOR.
  5.  ANY  PERSON OR OFFICIAL REQUIRED BY THIS SECTION TO REPORT CERTAIN
INFORMATION AS SPECIFIED IN THIS SECTION  WHO  KNOWINGLY  AND  WILLFULLY
FAILS  TO  DO  SO  SHALL  BE  CIVILLY LIABLE FOR THE DAMAGES PROXIMATELY
CAUSED BY SUCH FAILURE.
  6. ANY PERSON OR OFFICIAL PARTICIPATING IN GOOD FAITH IN THE MAKING OF
A REPORT UNDER THIS SECTION SHALL  HAVE  IMMUNITY  FROM  ANY  LIABILITY,
CIVIL  OR  CRIMINAL,  THAT  MIGHT  OTHERWISE  RESULT  BY  REASON OF SUCH
ACTIONS. FOR THE PURPOSE OF ANY PROCEEDING, CIVIL OR CRIMINAL, THE  GOOD
FAITH  OF  ANY  SUCH  PERSON  OR  OFFICIAL REQUIRED TO REPORT UNDER THIS
SECTION SHALL BE PRESUMED, PROVIDED SUCH PERSON OR OFFICIAL  WAS  ACTING
IN  DISCHARGE  OF THEIR DUTIES AND WITHIN THE SCOPE OF THEIR EMPLOYMENT,
AND THAT SUCH LIABILITY DID NOT RESULT FROM THE  WILLFUL  MISCONDUCT  OR
GROSS NEGLIGENCE OF SUCH PERSON OR OFFICIAL.
  S  3. Subdivision 6 of section 2122 of the education law is amended to
read as follows:
  6. Such treasurer shall[, whenever required by such trustees,]  report
to  [them]  SUCH  TRUSTEES  a  detailed [statement] ANNUAL REPORT of the
moneys received by him OR HER and of his OR HER  disbursements,  and  at
the  annual  meeting  of  such  district  he  OR SHE shall render a full
account of all moneys received by him OR HER and from what  source,  and
when  received, and all disbursements made by him OR HER and to whom and
the dates of such disbursements respectively, and the balance of  moneys
remaining  in  his  OR  HER hands.   THE TREASURER SHALL CERTIFY IN SUCH
ANNUAL REPORT THAT HE OR SHE HAS:   REVIEWED  THE  ANNUAL  REPORT;  THAT
BASED  ON  THE  TREASURER'S  KNOWLEDGE,  THE REPORT DOES NOT CONTAIN ANY
UNTRUE STATEMENT OF A MATERIAL FACT OR OMIT TO  STATE  A  MATERIAL  FACT
NECESSARY  IN ORDER TO MAKE THE STATEMENTS MADE, IN LIGHT OF THE CIRCUM-
STANCES UNDER WHICH SUCH STATEMENTS WERE MADE, NOT MISLEADING; AND BASED
ON SUCH TREASURER'S  KNOWLEDGE,  THE  FINANCIAL  STATEMENTS,  AND  OTHER
FINANCIAL  INFORMATION  INCLUDED  IN  THE  REPORT, FAIRLY PRESENT IN ALL
MATERIAL RESPECTS THE FINANCIAL CONDITION AND RESULTS OF  OPERATIONS  OF
THE SCHOOL DISTRICT AS OF, AND FOR, THE PERIODS PRESENTED IN THE REPORT.
  S  4.  Section  1720  of  the education law is amended by adding a new
subdivision 3 to read as follows:

A. 4135                            12

  3. THE TREASURER OF THE DISTRICT SHALL ISSUE AN ANNUAL REPORT  WITH  A
FULL  AND  DETAILED  ACCOUNT OF ALL MONEYS RECEIVED BY THE BOARD OR SUCH
TREASURER, FOR ITS ACCOUNT AND USE,  AND  OF  ALL  THE  MONEYS  EXPENDED
THEREFOR,  GIVING  THE ITEMS OF EXPENDITURE IN FULL. THE TREASURER SHALL
CERTIFY  IN  SUCH ANNUAL REPORT THAT HE HAS: REVIEWED THE ANNUAL REPORT;
THAT BASED ON THE TREASURER'S KNOWLEDGE, THE REPORT DOES NOT CONTAIN ANY
UNTRUE STATEMENT OF A MATERIAL FACT OR OMIT TO  STATE  A  MATERIAL  FACT
NECESSARY  IN ORDER TO MAKE THE STATEMENTS MADE, IN LIGHT OF THE CIRCUM-
STANCES UNDER WHICH SUCH STATEMENTS WERE MADE, NOT MISLEADING; AND BASED
ON SUCH TREASURER'S  KNOWLEDGE,  THE  FINANCIAL  STATEMENTS,  AND  OTHER
FINANCIAL  INFORMATION  INCLUDED  IN  THE  REPORT, FAIRLY PRESENT IN ALL
MATERIAL RESPECTS THE FINANCIAL CONDITION AND RESULTS OF  OPERATIONS  OF
THE SCHOOL DISTRICT AS OF, AND FOR, THE PERIODS PRESENTED IN THE REPORT.
  S  5.  Section  2215  of  the education law is amended by adding a new
subdivision 17 to read as follows:
  17. TO CERTIFY IN THE ANNUAL REPORT ISSUED PURSUANT TO EITHER  SECTION
SEVENTEEN  HUNDRED  TWENTY  OF  THIS TITLE OR SECTION TWENTY-ONE HUNDRED
TWENTY-TWO OF THIS TITLE THAT HE HAS: REVIEWED THE ANNUAL  REPORT;  THAT
BASED ON THE SUPERINTENDENT'S KNOWLEDGE, THE REPORT DOES NOT CONTAIN ANY
UNTRUE  STATEMENT  OF  A  MATERIAL FACT OR OMIT TO STATE A MATERIAL FACT
NECESSARY IN ORDER TO MAKE THE STATEMENTS MADE, IN LIGHT OF THE  CIRCUM-
STANCES UNDER WHICH SUCH STATEMENTS WERE MADE, NOT MISLEADING; AND BASED
ON  SUCH SUPERINTENDENT'S KNOWLEDGE, THE FINANCIAL STATEMENTS, AND OTHER
FINANCIAL INFORMATION INCLUDED IN THE  REPORT,  FAIRLY  PRESENT  IN  ALL
MATERIAL  RESPECTS  THE FINANCIAL CONDITION AND RESULTS OF OPERATIONS OF
THE SCHOOL DISTRICT AS OF, AND FOR, THE PERIODS PRESENTED IN THE REPORT.
  S 6. The education law is amended by adding a new  section  2116-e  to
read as follows:
  S  2116-E.  COMPENSATION  COMMITTEES. 1. EVERY SCHOOL DISTRICT, EXCEPT
THOSE EMPLOYING FEWER THAN EIGHT TEACHERS, SHALL ESTABLISH BY  A  RESOL-
UTION  OF  THE  TRUSTEES  OR  BOARD OF EDUCATION A LOCAL SCHOOL DISTRICT
COMPENSATION COMMITTEE TO OVERSEE AND REPORT TO THE TRUSTEES OR BOARD ON
THE PROPOSED CONTRACTS OF ALL SCHOOL DISTRICT BARGAINING UNITS, ADMINIS-
TRATORS AND SUPERINTENDENTS.
  2. THE COMPENSATION COMMITTEE SHALL BE ESTABLISHED NO LATER THAN JANU-
ARY FIRST, TWO THOUSAND TEN AS A COMMITTEE OF THE TRUSTEES OR BOARD,  AS
AN ADVISORY COMMITTEE, OR AS A COMMITTEE OF THE WHOLE.
  3. THE COMPENSATION COMMITTEE SHALL CONSIST OF AT LEAST THREE MEMBERS,
AT LEAST TWO OF WHOM SHALL NOT BE A TRUSTEE OR BOARD MEMBER. THE COMPEN-
SATION COMMITTEE MEMBERS SHALL SERVE WITHOUT COMPENSATION.  EMPLOYEES OF
THE  SCHOOL  DISTRICT  ARE  PROHIBITED  FROM SERVING ON THE COMPENSATION
COMMITTEE. A MEMBER OF A COMPENSATION COMMITTEE SHALL BE DEEMED A SCHOOL
DISTRICT OFFICER FOR THE PURPOSES OF SECTIONS THIRTY-EIGHT HUNDRED ELEV-
EN, THIRTY-EIGHT HUNDRED TWELVE AND  THIRTY-EIGHT  HUNDRED  THIRTEEN  OF
THIS  CHAPTER,  BUT SHALL NOT BE REQUIRED TO BE A RESIDENT OF THE SCHOOL
DISTRICT.
  4. THE ROLE OF A COMPENSATION COMMITTEE  SHALL  BE  ADVISORY  AND  ANY
RECOMMENDATIONS  IT  PROVIDES TO THE TRUSTEES OR BOARD UNDER SUBDIVISION
FIVE OF THIS SECTION SHALL NOT SUBSTITUTE FOR ANY  REQUIRED  REVIEW  AND
ACTION BY THE TRUSTEES OR BOARD OF EDUCATION.
  5. IT SHALL BE THE RESPONSIBILITY OF THE COMPENSATION COMMITTEE TO:
  (A)  REVIEW  EVERY  CONTRACT  BETWEEN  THE DISTRICT AND ANY BARGAINING
UNITS, EMPLOYEES, ADMINISTRATORS AND  SUPERINTENDENTS  NEGOTIATED  AFTER
JANUARY FIRST, TWO THOUSAND TEN;

A. 4135                            13

  (B) RECEIVE AND REVIEW PROPOSED CONTRACTS BETWEEN THE DISTRICT AND ANY
BARGAINING UNITS, EMPLOYEES, ADMINISTRATORS AND SUPERINTENDENTS PRIOR TO
SUCH CONTRACTS' APPROVAL; AND
  (C)  PROVIDE  RECOMMENDATIONS  TO  THE TRUSTEES OR BOARD REGARDING THE
SALARY, FRINGE BENEFITS  AND  OTHER  FORMS  OF  COMPENSATION  GIVEN  AND
PROPOSED  TO  BE  GIVEN TO ALL SCHOOL DISTRICT EMPLOYEES, ADMINISTRATORS
AND SUPERINTENDENTS.
  6. NOTWITHSTANDING ANY PROVISION OF ARTICLE SEVEN OF THE PUBLIC  OFFI-
CERS  LAW  OR  ANY  OTHER LAW TO THE CONTRARY, A SCHOOL DISTRICT COMPEN-
SATION COMMITTEE MAY CONDUCT AN EXECUTIVE SESSION  PURSUANT  TO  SECTION
ONE HUNDRED FIVE OF THE PUBLIC OFFICERS LAW PERTAINING TO ANY MATTER SET
FORTH IN PARAGRAPHS (A) AND (B) OF SUBDIVISION FIVE OF THIS SECTION.
  7.  THE  COMMISSIONER  IS  AUTHORIZED  TO  PROMULGATE REGULATIONS WITH
RESPECT TO COMPENSATION COMMITTEES  AS  ARE  NECESSARY  FOR  THE  PROPER
PERFORMANCE OF THEIR DUTIES.
  8.   AS LONG AS THE CHANCELLOR OF A SCHOOL DISTRICT IN A CITY HAVING A
POPULATION OF ONE MILLION OR MORE INHABITANTS SHALL ANNUALLY CERTIFY  TO
THE  COMMISSIONER  THAT  SUCH  DISTRICT  HAS  A  PROCESS FOR REVIEW BY A
COMPENSATION COMMITTEE OF THE DISTRICT'S CONTRACTS WITH  ANY  BARGAINING
UNITS,  EMPLOYEES, ADMINISTRATORS AND SUPERINTENDENTS, THE PROVISIONS OF
THIS SECTION SHALL NOT APPLY TO SUCH SCHOOL DISTRICT.
  S 7. The education law is amended by adding a new  section  2009-a  to
read as follows:
  S  2009-A. ADDITIONAL REQUIREMENTS OF NOTICE PRIOR TO AUTHORIZATION OF
SCHOOL DISTRICT EMPLOYMENT CONTRACTS. WHERE  ANY  COLLECTIVE  BARGAINING
AGREEMENT,  EMPLOYMENT  CONTRACT  OR  AMENDMENTS  TO  SUCH  AGREEMENT OR
CONTRACT IS TO BE SUBMITTED TO A DISTRICT MEETING FOR A VOTE, THE SCHOOL
DISTRICT BOARD OR TRUSTEES SHALL GIVE NOTICE, AT LEAST FIVE WEEKS  PRIOR
TO  SUCH MEETING, THROUGH A DISTRICT-WIDE MAILING OF THE AVAILABILITY OF
THE AGREEMENT, CONTRACT OR AMENDMENT  AT  PUBLIC  LIBRARIES  WITHIN  THE
DISTRICT,  AT  THE  SCHOOL DISTRICT OFFICES AND ON THE SCHOOL DISTRICT'S
INTERNET WEBSITE, IF ONE EXISTS.
  S 8. Subdivision 4 of section 1608 of the education law, as amended by
chapter 640 of the laws of 2008, is amended to read as follows:
  4. Commencing with the proposed budget for the nineteen hundred  nine-
ty-eight--ninety-nine   school  year,  such  proposed  budget  shall  be
presented in three components: a program component, a capital  component
and  an administrative component which shall be separately delineated in
accordance with regulations of the commissioner after consultation  with
local  school  district  officials.  The  administrative component shall
include, but need not be limited to, office and  central  administrative
expenses, traveling expenses and all compensation, salaries and benefits
of  all school administrators and supervisors, including business admin-
istrators, superintendents of schools and deputy,  assistant,  associate
or  other  superintendents  AND  TEACHERS  under all existing employment
contracts or collective bargaining agreements, any and all  expenditures
associated with the operation of the office of trustee or board of trus-
tees,  the  office  of  the  superintendent of schools, general adminis-
tration, the school  business  office,  consulting  costs  not  directly
related  to direct student services and programs, planning and all other
administrative activities. The program component shall include, but need
not be limited to, all program  expenditures  of  the  school  district,
including  the salaries and benefits of teachers and any school adminis-
trators or supervisors who spend a majority  of  their  time  performing
teaching duties, and all transportation operating expenses.  The capital
component  shall include, but need not be limited to, all transportation

A. 4135                            14

capital, debt service, and  lease  expenditures;  costs  resulting  from
judgments  in  tax  certiorari proceedings or the payment of awards from
court judgments, administrative orders or settled or compromised claims;
and  all  facilities  costs of the school district, including facilities
lease expenditures, the annual debt  service  and  total  debt  for  all
facilities  financed  by bonds and notes of the school district, and the
costs of construction, acquisition,  reconstruction,  rehabilitation  or
improvement of school buildings, provided that such budget shall include
a  rental,  operations  and  maintenance section that includes base rent
costs, total rent costs, operation and  maintenance  charges,  cost  per
square foot for each facility leased by the school district, and any and
all  expenditures  associated  with  custodial  salaries  and  benefits,
service contracts, supplies, utilities, and maintenance and  repairs  of
school  facilities.  For the purposes of the development of a budget for
the nineteen hundred ninety-eight--ninety-nine school year, the  trustee
or  board of trustees shall separate the district's program, capital and
administrative costs for the nineteen hundred ninety-seven--ninety-eight
school year in the manner as if  the  budget  for  such  year  had  been
presented in three components.
  S 9. Subdivision 4 of section 1716 of the education law, as amended by
chapter 640 of the laws of 2008, is amended to read as follows:
  4.  Commencing with the proposed budget for the nineteen hundred nine-
ty-eight--ninety-nine  school  year,  such  proposed  budget  shall   be
presented  in three components: a program component, a capital component
and an administrative component which shall be separately delineated  in
accordance  with regulations of the commissioner after consultation with
local school district  officials.  The  administrative  component  shall
include,  but  need not be limited to, office and central administrative
expenses, traveling expenses and all compensation, salaries and benefits
of all school administrators and supervisors, including business  admin-
istrators,  superintendents  of schools and deputy, assistant, associate
or other superintendents AND  TEACHERS  under  all  existing  employment
contracts  or collective bargaining agreements, any and all expenditures
associated with the operation of the board of education, the  office  of
the  superintendent of schools, general administration, the school busi-
ness office, consulting costs not directly  related  to  direct  student
services and programs, planning and all other administrative activities.
The  program  component  shall  include, but need not be limited to, all
program expenditures of the school district, including the salaries  and
benefits  of  teachers  and any school administrators or supervisors who
spend a majority of their  time  performing  teaching  duties,  and  all
transportation  operating expenses. The capital component shall include,
but need not be limited to, all transportation  capital,  debt  service,
and lease expenditures; costs resulting from judgments in tax certiorari
proceedings  or  the payment of awards from court judgments, administra-
tive orders or settled or compromised claims; and all  facilities  costs
of  the  school  district,  including facilities lease expenditures, the
annual debt service and total debt for all facilities financed by  bonds
and  notes of the school district, and the costs of construction, acqui-
sition, reconstruction, rehabilitation or improvement of  school  build-
ings,  provided  that such budget shall include a rental, operations and
maintenance section that includes base rent  costs,  total  rent  costs,
operation and maintenance charges, cost per square foot for each facili-
ty  leased  by the school district, and any and all expenditures associ-
ated with custodial salaries and benefits, service contracts,  supplies,
utilities,  and  maintenance  and  repairs of school facilities. For the

A. 4135                            15

purposes of the development of a budget for the nineteen  hundred  nine-
ty-eight--ninety-nine school year, the board of education shall separate
the  district's  program, capital and administrative costs for the nine-
teen  hundred ninety-seven--ninety-eight school year in the manner as if
the budget for such year had been presented in three components.
  S 10. Subdivision 2 of section 1608 of the education law,  as  amended
by chapter 640 of the laws of 2008, is amended to read as follows:
  2.  Such  statement  shall be completed at least seven days before the
budget hearing at which it is to be presented and copies  thereof  shall
be  prepared  and  made  available,  [upon  request  and]  at the school
district offices, at any public  library  or  free  association  library
within  the  district  and on the school district's internet website, if
one exists, to residents within the district during the period of [four-
teen] THIRTY days immediately preceding the annual meeting and  election
or  special  district meeting at which the budget vote will occur and at
such meeting or hearing. The board shall also as a part  of  the  notice
required  by  section  two thousand three of this chapter give notice of
the date, time and place of the budget hearing and that a copy  of  such
statement  may  be  obtained  by  any  resident  in the district at each
schoolhouse in the district in which school is maintained during certain
designated hours on each day other than a Saturday,  Sunday  or  holiday
during  the  [fourteen]  THIRTY days immediately preceding such meeting.
The board shall include notice of the availability of such statement  at
least  once during the school year in any district-wide mailing distrib-
uted.
  S 11. Subdivision 2 of section 1716 of the education law,  as  amended
by chapter 640 of the laws of 2008, is amended to read as follows:
  2.  Such  statement  shall be completed at least seven days before the
budget hearing at which it is to be presented and copies  thereof  shall
be  prepared  and  made  available,  [upon  request  and]  at the school
district offices, at any public  library  or  free  association  library
within  the  district  and on the school district's internet website, if
one exists, to residents within the district during the period of [four-
teen] THIRTY days immediately preceding the annual meeting and  election
or  special  district meeting at which the budget vote will occur and at
such meeting or hearing. The board shall also as a part  of  the  notice
required by section two thousand four of this chapter give notice of the
date,  time  and  place  of  the  budget hearing and that a copy of such
statement may be obtained by  any  resident  in  the  district  at  each
schoolhouse in the district in which school is maintained during certain
designated  hours  on  each day other than a Saturday, Sunday or holiday
during the [fourteen] THIRTY days immediately  preceding  such  meeting.
The  board shall include notice of the availability of such statement at
least once during the school year in any district-wide mailing  distrib-
uted.
  S  12.  Paragraph (c) of subdivision 3 of section 2116-a of the educa-
tion law, as added by chapter 263 of the laws of  2005,  is  amended  to
read as follows:
  (c)  Notwithstanding  the  provisions of subparagraph one of paragraph
(b) of subdivision four of section thirty-five of the general  municipal
law,  each school district shall (i) prepare a corrective action plan in
response to any findings contained in the annual external  audit  report
or  management  letter,  or  any  final audit report issued by the state
comptroller, within ninety days of receipt of such report or letter, and
(ii) to the extent practicable, begin implementation of such  corrective
action  plan no later than the end of the next fiscal year.  EACH SCHOOL

A. 4135                            16

DISTRICT SHALL NOTIFY THE DISTRICT RESIDENTS OF THE AVAILABILITY OF  THE
CORRECTIVE  ACTION  PLAN AT PUBLIC LIBRARIES WITHIN THE DISTRICT, AT THE
SCHOOL DISTRICT OFFICES AND ON THE SCHOOL DISTRICT'S  INTERNET  WEBSITE,
IF  ONE  EXISTS.  ANY  SCHOOL  DISTRICT  WHICH  FAILS TO COMPLY WITH THE
REQUIRED NOTIFICATION OF AVAILABILITY  OF  THE  CORRECTIVE  ACTION  PLAN
SHALL  BE SUBJECT TO A CIVIL PENALTY NOT TO EXCEED FIVE THOUSAND DOLLARS
UPON AN ADMINISTRATIVE DETERMINATION BY THE COMMISSIONER.
  S 13. The executive law is amended by adding a new article 4-B to read
as follows:
                                ARTICLE 4-B
           OFFICE OF THE STATE INSPECTOR GENERAL FOR EDUCATION

SECTION 57. ESTABLISHMENT AND ORGANIZATION.
        58. FUNCTIONS AND DUTIES.
        59. POWERS.
  S 57. ESTABLISHMENT AND ORGANIZATION.  1. THERE IS HEREBY  ESTABLISHED
THE OFFICE OF THE STATE INSPECTOR GENERAL FOR EDUCATION. THE HEAD OF THE
OFFICE  SHALL BE THE EDUCATION INSPECTOR GENERAL, WHO SHALL BE APPOINTED
BY THE BOARD OF THE  OFFICE OF THE STATE INSPECTOR  GENERAL  FOR  EDUCA-
TION.  SUCH  OFFICE  SHALL BE INDEPENDENT OF THE DEPARTMENT OF EDUCATION
AND OF ANY OTHER OFFICE, AGENCY, BOARD OR COMMISSION OF THE STATE OR ANY
OF ITS POLITICAL SUBDIVISIONS.
  2. THE EDUCATION INSPECTOR GENERAL MAY EMPLOY AND  AT  THEIR  PLEASURE
REMOVE SUCH PERSONNEL AS  THEY DEEM NECESSARY FOR THE PERFORMANCE OF THE
OFFICE, AND MAY FIX THEIR COMPENSATION WITH AMOUNTS AVAILABLE THEREFOR.
  3.  THERE  IS  HEREBY ESTABLISHED THE BOARD OF THE OFFICE OF THE STATE
INSPECTOR GENERAL FOR EDUCATION WHICH SHALL CONSIST OF  ELEVEN  MEMBERS,
AND  SHALL HAVE AND EXERCISE THE POWERS AND DUTIES OF THE  OFFICE OF THE
STATE INSPECTOR GENERAL FOR EDUCATION.
  4. THE BOARD MEMBERS SHALL BE APPOINTED AS FOLLOWS:
  (A) THREE MEMBERS SHALL BE APPOINTED BY  THE  GOVERNOR,  ONE  OF  WHOM
SHALL BE DESIGNATED BY THE  GOVERNOR AS THE CHAIR OF THE BOARD;
  (B) THREE MEMBERS SHALL BE APPOINTED BY THE TEMPORARY PRESIDENT OF THE
SENATE;
  (C) THREE MEMBERS SHALL BE APPOINTED BY THE SPEAKER OF THE ASSEMBLY;
  (D) ONE MEMBER SHALL BE APPOINTED BY THE MINORITY LEADER OF THE ASSEM-
BLY; AND
  (E)  ONE  MEMBER  SHALL  BE  APPOINTED  BY  THE MINORITY LEADER OF THE
SENATE.
  5. THE BOARD MEMBERS SHALL SERVE FOR TERMS OF FIVE YEARS.
  6. THE CHAIR OF THE BOARD OR ANY FIVE MEMBERS THEREOF MAY CALL A MEET-
ING OF THE BOARD.
  7. ANY VACANCY OCCURRING ON THE BOARD SHALL  BE  FILLED  WITHIN  SIXTY
DAYS  OF ITS OCCURRENCE, IN THE  SAME MANNER AS THE MEMBER WHOSE VACANCY
IS BEING FILLED WAS APPOINTED. A PERSON APPOINTED   TO  FILL  A  VACANCY
OCCURRING  OTHER  THAN  BY  EXPIRATION  OF  A  TERM  OF  OFFICE SHALL BE
APPOINTED FOR THE  UNEXPIRED TERM OF THE MEMBER HE OR SHE SUCCEEDS.
  8. SIX MEMBERS OF THE BOARD SHALL CONSTITUTE A QUORUM  AND  THE  BOARD
SHALL  HAVE  THE  POWER  TO  ACT BY MAJORITY VOTE OF THE TOTAL NUMBER OF
MEMBERS OF THE BOARD WITHOUT VACANCY.
  9. THE BOARD MEMBERS SHALL NOT RECEIVE COMPENSATION BUT SHALL BE REIM-
BURSED FOR REASONABLE EXPENSES INCURRED  IN  THE  PERFORMANCE  OF  THEIR
OFFICIAL DUTIES.
  10.  THE  BOARD SHALL APPOINT AN EDUCATION INSPECTOR GENERAL WHO SHALL
PERFORM THE POWERS AND DUTIES SET  FORTH  IN  SECTIONS  FIFTY-EIGHT  AND
FIFTY-NINE  OF  THIS  ARTICLE,  AND  WHO SHALL SERVE FOR A TERM  OF FIVE

A. 4135                            17

YEARS AND MAY ONLY BE DISMISSED FOR CAUSE OR BY A THREE-QUARTERS VOTE OF
THE BOARD. THE  BOARD MAY FIX THE COMPENSATION OF THE EDUCATION  INSPEC-
TOR GENERAL.
  11.  NO  BOARD MEMBER, NOR THE EDUCATION INSPECTOR GENERAL, SHALL HOLD
ANY ELECTED PUBLIC OFFICE OR OFFICE IN ANY POLITICAL  PARTY,  NOR  SHALL
ANY  MEMBER BE AN EMPLOYEE OF OR UNDER THE SUPERVISION OF ANY PERSON WHO
HOLDS SUCH ELECTED PUBLIC OFFICE OR OFFICE  OF  A  POLITICAL  PARTY.  NO
MEMBER OF THE  BOARD SHALL SERVE IN ANY PUBLIC OR POLITICAL OFFICE WITH-
IN FIVE YEARS OF THE MEMBER'S PERIOD OF SERVICE.
  12. THE EDUCATION INSPECTOR GENERAL SHALL, PRIOR TO THEIR APPOINTMENT,
HAVE HAD AT LEAST TEN YEARS EXPERIENCE IN AUDITING OR LAW ENFORCEMENT OR
INVESTIGATION, OR IN PROSECUTING OR AIDING IN THE PROSECUTION OF FRAUD.
  13.  MEMBERS  OF THE BOARD SHALL, PRIOR TO THEIR APPOINTMENT, HAVE HAD
AT LEAST THREE YEARS EXPERIENCE IN AUDITING OR INVESTIGATION OF  GOVERN-
MENTAL  OR  SCHOOL  DISTRICT  OPERATIONS, OR IN THE PRACTICE OF LAW, LAW
ENFORCEMENT OR IN SERVICES RELATED  TO  DEVELOPMENT  AND  MANAGEMENT  OF
INFORMATION TECHNOLOGY OR DATABASE CREATION AND MAINTENANCE.
  S  58.  FUNCTIONS  AND DUTIES.   THE EDUCATION INSPECTOR GENERAL SHALL
HAVE THE FOLLOWING DUTIES AND RESPONSIBILITIES:
  1. TO RECEIVE AND INVESTIGATE COMPLAINTS FROM ANY SOURCE, OR UPON  HIS
OR  HER  OWN INITIATIVE, CONCERNING ALLEGATIONS OF CORRUPTION, FINANCIAL
IMPROPRIETIES, UNETHICAL CONDUCT, MISCONDUCT OR OTHER  CRIMINAL  CONDUCT
WITHIN  PUBLIC  SCHOOL  DISTRICTS OUTSIDE OF A CITY WITH A POPULATION OF
ONE MILLION OR MORE;
  2. TO INVESTIGATE AND REPORT ON CORRUPTION AND OTHER  CRIMINAL  ACTIV-
ITY,  SCHOOL BOARD ELECTION FRAUD,  BIDDING IRREGULARITIES AND CONFLICTS
OF INTEREST BY PUBLIC SCHOOL DISTRICT EMPLOYEES WHOSE ACTIONS  RELATE TO
THEIR EMPLOYMENT, PERSONS OR  ENTITIES  DOING  BUSINESS  WITH  A  PUBLIC
SCHOOL  DISTRICT CONCERNING THEIR TRANSACTIONS WITH THE SCHOOL DISTRICT,
AND SCHOOL BOARD MEMBERS WHOSE ACTIONS  RELATE TO THEIR OFFICE;
  3. TO DETERMINE WITH RESPECT TO SUCH ALLEGATIONS WHETHER  DISCIPLINARY
ACTION,  CIVIL  OR CRIMINAL  PROSECUTION, OR FURTHER INVESTIGATION BY AN
APPROPRIATE FEDERAL, STATE OR LOCAL AGENCY IS WARRANTED, AND  TO  ASSIST
IN SUCH INVESTIGATIONS;
  4.  TO  REVIEW AND EXAMINE PERIODICALLY THE POLICIES AND PROCEDURES OF
PUBLIC SCHOOL DISTRICTS WITH REGARD TO THE PREVENTION AND  DETECTION  OF
CORRUPTION,  FINANCIAL  IMPROPRIETIES,  UNETHICAL CONDUCT,   MISCONDUCT,
OTHER CRIMINAL CONDUCT, SCHOOL BOARD ELECTION FRAUD, BIDDING IRREGULARI-
TIES AND CONFLICTS OF INTEREST OR ABUSE;
  5. TO RECOMMEND REMEDIAL ACTION TO PREVENT  OR  ELIMINATE  CORRUPTION,
FINANCIAL  IMPROPRIETIES,  UNETHICAL CONDUCT, MISCONDUCT, OTHER CRIMINAL
CONDUCT, SCHOOL BOARD ELECTION FRAUD, BIDDING IRREGULARITIES,  CONFLICTS
OF INTEREST OR ABUSE BY PUBLIC SCHOOL DISTRICT OFFICIALS AND EMPLOYEES;
  6.  TO  ESTABLISH  PROGRAMS  FOR  TRAINING PUBLIC SCHOOL OFFICIALS AND
EMPLOYEES REGARDING THE PREVENTION AND ELIMINATION OF CORRUPTION, FINAN-
CIAL  IMPROPRIETIES,  UNETHICAL  CONDUCT,  MISCONDUCT,  OTHER   CRIMINAL
CONDUCT,   SCHOOL  BOARD  ELECTION  FRAUD,  BIDDING  IRREGULARITIES  AND
CONFLICTS OF INTEREST OR ABUSE;
  7. TO PREPARE AN ANNUAL REPORT THAT PROVIDES THE RESULTS OF THE EDUCA-
TION INSPECTOR GENERAL'S FINDINGS   WITH RESPECT TO  ALL  INVESTIGATIONS
AND  DETAILED  ANALYSIS  OF THE CURRENT FINANCIAL STATUS OF THOSE SCHOOL
DISTRICTS THAT HAVE BEEN REVIEWED;
  8. TO INCLUDE IN SUCH REPORT  ANY  FINDINGS  REGARDING  THE  FINANCIAL
PRACTICES  OF  THE  SCHOOL DISTRICT THAT THE EDUCATION INSPECTOR GENERAL
BELIEVES VIOLATED, OR COULD POTENTIALLY VIOLATE,  EXISTING  STATE  RULES
OR  REGULATIONS  OR  MAY  BE  OF CONCERN IN THAT INCOMPETENCE OR LACK OF

A. 4135                            18

TRAINING MAY RESULT IN  FINANCIAL PRACTICES THAT VIOLATE STATE RULES AND
REGULATIONS;
  9.  TO  ISSUE  THE  REPORT TO THE LEGISLATURE, THE COMPTROLLER AND THE
DEPARTMENT OF EDUCATION WITH EACH  ANNUAL  REPORT  POSTED  ON  A  PUBLIC
INTERNET WEBSITE FOR AT LEAST FIVE YEARS FROM THE DATE OF ISSUANCE.
  S  59.  POWERS.   THE EDUCATION INSPECTOR GENERAL SHALL HAVE THE POWER
TO:
  1. SUBPOENA AND ENFORCE THE ATTENDANCE  OF  WITNESSES,  INCLUDING  THE
POWER  TO  SUBPOENA DOCUMENTS AND RECORDS NECESSARY TO ANY INVESTIGATION
FROM ANY PUBLIC SCHOOL DISTRICT OUTSIDE OF A CITY WITH A  POPULATION  OF
ONE  MILLION  OR  MORE AND FROM VENDORS WHO DO BUSINESS WITH SUCH PUBLIC
SCHOOL DISTRICTS;
  2. ADMINISTER OATHS OR AFFIRMATIONS AND EXAMINE WITNESSES UNDER OATH;
  3. REQUIRE THE PRODUCTION OF ANY BOOKS AND PAPERS DEEMED  RELEVANT  OR
MATERIAL TO ANY INVESTIGATION, EXAMINATION OR REVIEW;
  4. NOTWITHSTANDING ANY LAW TO THE CONTRARY, EXAMINE AND COPY OR REMOVE
DOCUMENTS  OR  RECORDS  OF  ANY KIND PREPARED, MAINTAINED OR HELD BY ANY
PUBLIC SCHOOL DISTRICT COVERED BY THIS ARTICLE;
  5. REQUIRE ANY PUBLIC SCHOOL DISTRICT  EMPLOYEE  TO  ANSWER  QUESTIONS
CONCERNING  ANY MATTER RELATED TO THE PERFORMANCE OF HIS OR HER OFFICIAL
DUTIES. NO STATEMENT OR OTHER EVIDENCE DERIVED  THEREFROM  MAY  BE  USED
AGAINST  SUCH OFFICER OR EMPLOYEE IN ANY SUBSEQUENT CRIMINAL PROSECUTION
OTHER THAN FOR PERJURY OR CONTEMPT  ARISING  FROM  SUCH  TESTIMONY.  THE
REFUSAL  OF  ANY  OFFICER OR EMPLOYEE TO ANSWER QUESTIONS SHALL BE CAUSE
FOR REMOVAL FROM OFFICE OR EMPLOYMENT OR OTHER APPROPRIATE PENALTY;
  6. MONITOR THE IMPLEMENTATION BY PUBLIC SCHOOL DISTRICTS OF ANY RECOM-
MENDATIONS MADE BY THE EDUCATION INSPECTOR GENERAL;
  7. PERFORM ANY OTHER FUNCTIONS THAT ARE NECESSARY  OR  APPROPRIATE  TO
FULFILL THE DUTIES AND RESPONSIBILITIES OF THE OFFICE.
  S 14. Subparagraphs 2 and 3 of paragraph b of subdivision 2 of section
33  of the general municipal law, as added by chapter 267 of the laws of
2005, are amended and a new subparagraph 4 is added to read as follows:
  (2) assessing the current financial  practices  of  school  districts,
BOCES and charter schools to ensure that they are consistent with estab-
lished standards, [and]
  (3)  determining  that  school  districts,  BOCES, and charter schools
provide for adequate protections against any fraud,  theft,  or  profes-
sional misconduct[.], AND
  (4)  AUDITING  FEDERAL  AND  STATE  GRANT  PROGRAM EXPENDITURES IN ALL
SCHOOL DISTRICTS, BOCES AND CHARTER SCHOOLS.
  S 15. Paragraph d of subdivision 2 of section 33 of the general munic-
ipal law, as added by chapter 267 of the laws of  2005,  is  amended  to
read as follows:
  d.  The office of the state comptroller shall upon making a finding of
misconduct refer any findings of fraud, abuse or other  conduct  consti-
tuting  a  crime  that  are  uncovered during the course of an audit, as
appropriate, to the  commissioner  of  education,  THE  NEW  YORK  STATE
INSPECTOR GENERAL FOR EDUCATION, the charter entity, the attorney gener-
al,  United States attorney or district attorney having jurisdiction for
appropriate action, together with any documents supporting the auditors'
findings.
  S 16. The labor law is amended by adding a new section 742 to read  as
follows:
  S  742.  PROHIBITION;  PUBLIC  SCHOOL  DISTRICT EMPLOYER WHO PENALIZES
EMPLOYEES BECAUSE OF COMPLAINTS  OF  EMPLOYER  MALFEASANCE.  1.    DEFI-

A. 4135                            19

NITIONS.  AS  USED  IN  THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS:
  (A)  "EMPLOYEE"  MEANS  ANY PERSON WHO PERFORMS SERVICES FOR AND UNDER
THE CONTROL AND DIRECTION  OF ANY PUBLIC SCHOOL DISTRICT  OUTSIDE  OF  A
CITY WITH A POPULATION OF ONE MILLION OR MORE FOR WAGES  OR OTHER REMUN-
ERATION.
  (B) "EMPLOYER" MEANS ANY PUBLIC SCHOOL DISTRICT OUTSIDE OF A CITY WITH
A POPULATION OF ONE  MILLION OR MORE.
  (C)  "AGENT"  MEANS  ANY  INDIVIDUAL, PARTNERSHIP, ASSOCIATION, CORPO-
RATION, OR GROUP OF PERSONS  ACTING ON BEHALF OF AN EMPLOYER.
  (D) "PUBLIC BODY" MEANS:
  (1) THE UNITED STATES CONGRESS, ANY STATE LEGISLATURE, OR ANY  ELECTED
LOCAL GOVERNMENTAL BODY, OR ANY MEMBER OR EMPLOYEE THEREOF;
  (2) THE NEW YORK STATE INSPECTOR GENERAL FOR EDUCATION;
  (3) THE STATE COMPTROLLER;
  (4) THE ATTORNEY GENERAL;
  (5)  ANY  FEDERAL, STATE OR LOCAL REGULATORY, ADMINISTRATIVE OR PUBLIC
AGENCY OR AUTHORITY, OR INSTRUMENTALITY THEREOF;
  (6) ANY FEDERAL, STATE OR LOCAL LAW ENFORCEMENT AGENCY,  PROSECUTORIAL
OFFICE, OR POLICE OR PEACE  OFFICER;
  (7)  ANY  FEDERAL, STATE OR LOCAL DEPARTMENT OF AN EXECUTIVE BRANCH OF
GOVERNMENT; OR
  (8) ANY DIVISION, BOARD, BUREAU, OFFICE, COMMITTEE  OR  COMMISSION  OF
ANY  OF  THE  PUBLIC BODIES   DESCRIBED IN SUBPARAGRAPH ONE, TWO, THREE,
FOUR, FIVE, SIX OR SEVEN OF THIS PARAGRAPH.
  (E) "RETALIATORY ACTION" MEANS THE  DISCHARGE,  SUSPENSION,  DEMOTION,
PENALIZATION  OR  DISCRIMINATION  AGAINST  AN EMPLOYEE, OR OTHER ADVERSE
EMPLOYMENT ACTION TAKEN AGAINST AN EMPLOYEE IN THE TERMS AND  CONDITIONS
OF EMPLOYMENT.
  (F)  "SUPERVISOR"  MEANS  ANY PERSON WITHIN AN EMPLOYER'S ORGANIZATION
WHO HAS THE AUTHORITY TO  DIRECT AND CONTROL THE WORK PERFORMANCE OF  AN
EMPLOYEE,  OR  WHO HAS THE AUTHORITY TO TAKE CORRECTIVE ACTION REGARDING
FRAUD, CRIMINAL ACTIVITY OR  OTHER  MALFEASANCE  TO  WHICH  AN  EMPLOYEE
SUBMITS A COMPLAINT.
  2.  RETALIATORY ACTION PROHIBITED. NOTWITHSTANDING ANY OTHER PROVISION
OF LAW, NO EMPLOYER SHALL  TAKE RETALIATORY ACTION AGAINST ANY  EMPLOYEE
BECAUSE THE EMPLOYEE DOES ANY OF THE FOLLOWING:
  (A) DISCLOSES OR THREATENS TO DISCLOSE TO A SUPERVISOR, OR TO A PUBLIC
BODY  AN  ACTIVITY, POLICY OR PRACTICE OF THE EMPLOYER OR AGENT THAT THE
EMPLOYEE, IN GOOD FAITH, REASONABLY BELIEVES  CONSTITUTES FRAUD,  CRIMI-
NAL ACTIVITY OR OTHER MALFEASANCE; OR
  (B)  OBJECTS  TO, OR REFUSES TO PARTICIPATE IN ANY ACTIVITY, POLICY OR
PRACTICE OF THE EMPLOYER OR AGENT THAT  THE  EMPLOYEE,  IN  GOOD  FAITH,
REASONABLY  BELIEVES  CONSTITUTES  FRAUD,  CRIMINAL  ACTIVITY  OR  OTHER
MALFEASANCE.
  3. ENFORCEMENT. AN EMPLOYEE  MAY  SEEK  ENFORCEMENT  OF  THIS  SECTION
PURSUANT  TO  PARAGRAPH (E) OF SUBDIVISION FOUR OF SECTION SEVEN HUNDRED
FORTY OF THIS ARTICLE.
  4. RELIEF. IN ANY COURT ACTION BROUGHT PURSUANT  TO  THIS  SECTION  IT
SHALL BE A DEFENSE THAT THE PERSONNEL ACTION WAS PREDICATED UPON GROUNDS
OTHER  THAN  THE  EMPLOYEE'S  EXERCISE OF ANY RIGHTS   PROTECTED BY THIS
SECTION.
  S 17. Subdivision 4 of section 740 of the  labor  law  is  amended  by
adding a new paragraph (e) to read as follows:
  (E)  NOTWITHSTANDING  THE PROVISIONS OF PARAGRAPHS (A) AND (C) OF THIS
SUBDIVISION, AN EMPLOYEE WHO HAS  BEEN  THE  SUBJECT  OF  A  RETALIATORY

A. 4135                            20

ACTION BY AN EMPLOYER IN VIOLATION OF SECTION SEVEN HUNDRED FORTY-TWO OF
THIS ARTICLE MAY INSTITUTE A CIVIL ACTION IN A COURT OF COMPETENT JURIS-
DICTION  FOR  RELIEF  AS  SET  FORTH IN SUBDIVISION FIVE OF THIS SECTION
WITHIN  TWO  YEARS  AFTER  THE  ALLEGED RETALIATORY PERSONNEL ACTION WAS
TAKEN. IN ADDITION TO THE RELIEF SET FORTH IN SUCH SUBDIVISION FIVE, THE
COURT, IN ITS DISCRETION, BASED UPON A FINDING THAT THE  EMPLOYER  ACTED
IN BAD FAITH IN THE RETALIATORY ACTION, MAY ORDER THE EMPLOYER TO TERMI-
NATE THE SUPERVISOR WHO RETALIATED AGAINST THE EMPLOYEE.
  S  18. The penal law is amended by adding a new section 190.72 to read
as follows:
S 190.72 DEFRAUDING A PUBLIC PENSION PLAN.
  A PERSON IS GUILTY OF DEFRAUDING A PUBLIC PENSION PLAN WHEN HE OR  SHE
ENGAGES  IN A SCHEME CONSTITUTING A SYSTEMATIC ONGOING COURSE OF CONDUCT
WITH INTENT TO OBTAIN A BENEFIT OR ASSET, OR ASSIST  A  THIRD  PARTY  TO
OBTAIN A BENEFIT OR ASSET, FROM A PUBLIC PENSION PLAN TO WHICH HE OR SHE
OR  THE  THIRD  PARTY  IS  NOT  OTHERWISE  ENTITLED  TO  PURSUANT TO THE
RESTRICTION OF SECTION TWO HUNDRED ELEVEN OF THE RETIREMENT  AND  SOCIAL
SECURITY LAW.
  DEFRAUDING A PUBLIC PENSION PLAN IS A CLASS E FELONY.
  S 19. Section 211 of the retirement and social security law is amended
by adding a new subdivision 9 to read as follows:
  9.  A  RETIRED PERSON RECEIVING A RETIREMENT ALLOWANCE WHO IS EMPLOYED
AND EARNING COMPENSATION IN A PUBLIC SERVICE POSITION OR POSITIONS  WITH
THE  TOTAL  COMPENSATION  EXCEEDING THE LIMITATIONS SET FORTH IN SECTION
TWO HUNDRED TWELVE OF THIS ARTICLE AND SUCH PERSON HAS NOT OBTAINED  THE
REQUISITE  WAIVER  SET  FORTH IN THIS SECTION, AS WELL AS ANY PERSON WHO
KNOWINGLY ASSISTS ANOTHER PERSON IN  RECEIVING  A  RETIREMENT  ALLOWANCE
WHILE RECEIVING TOTAL COMPENSATION IN A PUBLIC SERVICE POSITION OR POSI-
TIONS EXCEEDING THE LIMITS OF SECTION TWO HUNDRED TWELVE OF THIS ARTICLE
AND  NOT  HAVING OBTAINED THE REQUISITE WAIVER, IS GUILTY OF LARCENY AND
PUNISHABLE AS PROVIDED IN THE PENAL LAW.
  S 20. Section 217 of the retirement and social security law, as  added
by chapter 640 of the laws of 2008, is amended to read as follows:
  S  217. Reporting requirements; school salary transparency and disclo-
sure. 1. A school district [and], a  board  of  cooperative  educational
services  AND  A  COLLEGE AS DEFINED IN SECTION TWO OF THE EDUCATION LAW
shall report all money earned by a retired person in their  employ  that
is  in excess of the earnings limitation outlined in section two hundred
twelve of this article to the  retirement  system  administered  by  the
state or any of its political subdivisions from whom such retired person
is collecting their retirement allowance.
  2.  A  school  district or a board of cooperative educational services
employing a retired person who is eligible  to  collect  or  is  already
collecting  a retirement allowance from a retirement system administered
by the state or any of its political subdivisions  shall  report  on  an
[annual]  MONTHLY  basis to the retirement system paying such retirement
allowance to such retired person and to the [state comptroller] NEW YORK
STATE INSPECTOR GENERAL FOR EDUCATION. This report shall consist of  the
re-employed  retiree's name, date of birth, place of employment, current
position and all earnings.
  S 21.  The general municipal law is amended by adding  a  new  article
2-A to read as follows:
                                ARTICLE 2-A
                      MUNICIPAL COOPERATION PROGRAM
SECTION 26. MUNICIPAL COOPERATION PROGRAM.

A. 4135                            21

  S  26.  MUNICIPAL  COOPERATION  PROGRAM. 1. ESTABLISHMENT.   THERE ARE
HEREBY ESTABLISHED A STATE CONFERENCE ON MUNICIPAL COOPERATION AND EIGHT
REGIONAL COMMISSIONS ON MUNICIPAL COOPERATION.  THE REGIONAL COMMISSIONS
SHALL BE AS FOLLOWS AND SHALL CONSIST OF THE FOLLOWING COUNTIES:
  (A)  LONG  ISLAND  - NEW YORK: BRONX, KINGS, NASSAU, NEW YORK, QUEENS,
RICHMOND AND SUFFOLK.
  (B) HUDSON  VALLEY:  DUTCHESS,  ORANGE,  PUTNAM,  ROCKLAND,  SULLIVAN,
ULSTER AND WESTCHESTER.
  (C) CAPITAL: COLUMBIA, GREENE, ALBANY, SCHOHARIE, RENSSELAER, SCHENEC-
TADY, MONTGOMERY, FULTON, SARATOGA AND WASHINGTON.
  (D)  NORTH  COUNTRY: WARREN, ESSEX, CLINTON, FRANKLIN, HAMILTON, SAINT
LAWRENCE, LEWIS, OSWEGO AND JEFFERSON.
  (E) CENTRAL - MOHAWK VALLEY: OTSEGO, HERKIMER, ONEIDA, MADISON,  CORT-
LAND, ONONDAGA AND CAYUGA.
  (F)  SOUTHERN  TIER:  DELAWARE,  BROOME,  CHENANGO,  TIOGA,  TOMPKINS,
SCHUYLER, CHEMUNG, ALLEGANY AND STEUBEN.
  (G) FINGER  LAKES:  WAYNE,  SENECA,  YATES,  ONTARIO,  LIVINGSTON  AND
MONROE.
  (H)  WESTERN: CATTARAUGUS, CHAUTAUQUA, ERIE, WYOMING, GENESEE, ORLEANS
AND NIAGARA.
  2. STATE CONFERENCE ON MUNICIPAL  COOPERATION  MEMBERSHIP.    (A)  THE
STATE CONFERENCE ON MUNICIPAL COOPERATION SHALL CONSIST OF NINE MEMBERS.
THE  SECRETARY  OF  STATE  SHALL BE A MEMBER OF THE CONFERENCE AND SHALL
SERVE AS ITS CHAIR. THE VICE CHAIR OF  EACH  REGIONAL  COMMISSION  SHALL
SERVE AS A MEMBER OF THE STATE CONFERENCE ON MUNICIPAL COOPERATION.
  (B) THE STATE CONFERENCE SHALL ALLOCATE FUNDS PURSUANT TO THIS SECTION
TO  EACH REGIONAL COMMISSION.  THE STATE CONFERENCE SHALL PROMULGATE ANY
RULES AND REGULATIONS NECESSARY TO  IMPLEMENT  THE  PROVISIONS  OF  THIS
SECTION;  HOWEVER  SUCH  RULES  AND REGULATIONS, AND ANY CHANGES THERETO
SHALL NOT TAKE EFFECT UNTIL APPROVED BY A MAJORITY VOTE OF THE GOVERNOR,
TEMPORARY PRESIDENT OF THE SENATE, SPEAKER  OF  THE  ASSEMBLY,  MINORITY
LEADER OF THE SENATE AND MINORITY LEADER OF THE ASSEMBLY.
  3.  REGIONAL  COMMISSIONS  MEMBERSHIP.    (A) EACH REGIONAL COMMISSION
SHALL CONSIST OF NINE MEMBERS, APPOINTED AS FOLLOWS:
  (I) TWO MEMBERS SHALL BE APPOINTED BY THE GOVERNOR, ONE OF WHOM  SHALL
BE  THE  CHAIR  OF  THE REGIONAL COMMISSION AND THE OTHER SHALL SERVE AS
VICE CHAIR;
  (II) TWO MEMBERS SHALL BE APPOINTED BY THE TEMPORARY PRESIDENT OF  THE
SENATE;
  (III) TWO MEMBERS SHALL BE APPOINTED BY THE SPEAKER OF THE ASSEMBLY;
  (IV)  ONE  MEMBER  SHALL  BE  APPOINTED  BY THE MINORITY LEADER OF THE
SENATE;
  (V) ONE MEMBER SHALL BE APPOINTED BY THE MINORITY LEADER OF THE ASSEM-
BLY; AND
  (VI) ONE MEMBER SHALL BE APPOINTED BY THE STATE COMPTROLLER.
  (B) EACH REGIONAL COMMISSION MAY CONDUCT BUSINESS  WITH  A  QUORUM  OF
MEMBERS IN OFFICE AT THE TIME.
  (C)  EACH  MEMBER OF A REGIONAL COMMISSION SHALL SERVE AT THE PLEASURE
OF HIS OR HER APPOINTING AUTHORITY.
  (D) MEMBERS OF REGIONAL COMMISSIONS SHALL RECEIVE NO COMPENSATION  FOR
THEIR  SERVICE  BUT SHALL BE ALLOWED THEIR ACTUAL AND NECESSARY EXPENSES
INCURRED IN THE PERFORMANCE OF THEIR DUTIES.
  (E) EVERY MEMBER OF A REGIONAL  COMMISSION  SHALL  RESIDE  WITHIN  THE
REGION REGULATED BY THE REGIONAL COMMISSION UPON WHICH HE OR SHE SERVES.
  (F)  EVERY  MEMBER OF A REGIONAL COMMISSION WHO IS AN ELECTED OFFICIAL
SHALL RECUSE HIMSELF OR HERSELF FROM ANY MEETING OF THE COMMISSION DEAL-

A. 4135                            22

ING DIRECTLY WITH AN ISSUE IMPACTING UPON THE MUNICIPALITY WHICH ELECTED
SUCH MEMBER.
  (G) A TWO-THIRDS MAJORITY OF EACH REGIONAL COMMISSION SHALL APPOINT AN
EXECUTIVE  DIRECTOR,  WHO  SHALL  CONDUCT  THE BUSINESS OF SUCH REGIONAL
COMMISSION UNDER THE SUPERVISION OF THE REGIONAL COMMISSION.  THE EXECU-
TIVE DIRECTOR SHALL ALSO BE AUTHORIZED TO HIRE SUCH ADDITIONAL STAFF  AS
NECESSARY  TO EXECUTE THE WORK OF THE REGIONAL COMMISSION. THE EXECUTIVE
DIRECTOR MAY BE REMOVED ONLY BY A THREE-QUARTERS VOTE OF THE MEMBERS  OF
THE REGIONAL COMMISSION.
  (H) THE PURPOSE OF THE REGIONAL COMMISSIONS SHALL BE TO:
  (I) INCREASE COMMUNICATION BETWEEN LOCAL GOVERNMENTS TO DISCUSS SHARED
SERVICES, CONSOLIDATION, AND THE MERGER OF LOCAL GOVERNMENTS;
  (II)  PROVIDE TECHNICAL AND FINANCIAL ASSISTANCE AND TRAINING TO LOCAL
GOVERNMENTS; AND
  (III) IDENTIFY STATE AND LOCAL LAWS WHICH MUST BE CHANGED  TO  ACHIEVE
BUDGETARY AND PROPERTY TAX SAVINGS THROUGH SHARING ARRANGEMENTS.
  (I)  THE  REGIONAL  COMMISSIONS  MAY AWARD GRANTS TO LOCAL GOVERNMENTS
WHICH SEEK TO WORK TOGETHER TO ACHIEVE SAVINGS. EACH REGIONAL COMMISSION
SHALL PROVIDE GRANTS IN THE FOLLOWING  MANNER:  TWENTY  PERCENT  OF  ALL
FUNDS  AVAILABLE  FOR THE PROVISION OF GRANTS SHALL BE USED FOR RESEARCH
GRANTS, TEN PERCENT FOR IMPLEMENTATION GRANTS, AND SEVENTY  PERCENT  FOR
COOPERATION  REWARD  GRANTS.  A REGIONAL COMMISSION MAY ALTER THIS ALLO-
CATION WITH THE APPROVAL OF AT LEAST TWO-THIRDS OF ITS MEMBERS.
  4. RESEARCH GRANTS. EACH REGIONAL COMMISSION SHALL SEEK TO PROVIDE THE
ASSISTANCE NECESSARY TO RESEARCH THE  EFFICACY  OF  COOPERATIVE  EFFORTS
BETWEEN  LOCALITIES. IF SUCH RESEARCH IS BEYOND THE SCOPE OF THE COMMIS-
SION, THEN THE LOCALITIES MAY SEEK A FIFTY PERCENT MATCHING  GRANT  FROM
THE  REGIONAL COMMISSION TO HIRE A PUBLIC, PRIVATE OR ACADEMIC ENTITY TO
CONDUCT SUCH RESEARCH. THE PROVISION OF  ANY  RESEARCH  GRANT,  AND  THE
ENTITY WHICH SHALL CONDUCT THE RESEARCH, SHALL BE SUBJECT TO APPROVAL BY
THE REGIONAL COMMISSION.
  5.  IMPLEMENTATION GRANTS. MUNICIPALITIES WHICH HAVE CHOSEN TO EXECUTE
THE COOPERATIVE EFFORT, SHALL IDENTIFY COSTS OF IMPLEMENTING THE  EFFORT
AND  REQUEST  A  GRANT  FROM THE REGIONAL COMMISSION. COSTS ELIGIBLE FOR
GRANTS MAY INCLUDE, BUT SHALL NOT BE LIMITED  TO:  EARLY  RETIREMENT  OR
RESIGNATION  INCENTIVES;  PURCHASES OF BUILDINGS OR EQUIPMENT; OR HIRING
OF TEMPORARY EMPLOYEES TO ASSIST IN CONSOLIDATION. SUCH GRANTS SHALL  BE
SUBJECT  TO  APPROVAL  BY THE REGIONAL COMMISSION. IMPLEMENTATION GRANTS
SHALL BE AWARDED IN THE FOLLOWING MANNER:
  (A) GRANTS TO FUND  THE  CONSOLIDATION  OF  SERVICES  BETWEEN  MUNICI-
PALITIES  OR THE PROVISION OF SERVICES FROM ONE MUNICIPALITY TO ANOTHER.
SUCH GRANTS SHALL EQUAL FIFTY PERCENT OF THE COSTS ASSOCIATED WITH  SUCH
MERGER OR CONSOLIDATION; AND
  (B)  GRANTS  TO FUND MERGERS BETWEEN MUNICIPALITIES. SUCH GRANTS SHALL
NOT EXCEED ONE HUNDRED PERCENT OF THE COSTS ASSOCIATED WITH SUCH MERGER.
  6. COOPERATION REWARD GRANTS. (A) THE REGIONAL  COMMISSION  MAY  AWARD
GRANTS  TO  MUNICIPALITIES  WHICH  HAVE ELECTED TO EXECUTE A COOPERATIVE
EFFORT. MUNICIPALITIES WHICH  HAVE  ELECTED  TO  EXECUTE  A  COOPERATIVE
EFFORT  SHALL  IDENTIFY  ONE  OF THE PARTICIPATING MUNICIPALITIES, WHICH
SHALL ACT AS A LEAD AGENT, WHICH SHALL IDENTIFY THE  SAVINGS  WHICH  ARE
EXPECTED  TO  ACCRUE  TO  THE  MUNICIPALITIES AND REQUEST A GRANT IN THE
AMOUNT DETERMINED PURSUANT TO THIS SUBDIVISION, AND SUBMIT A  REPORT  TO
THEIR  REGIONAL COMMISSION, WHICH SHALL BE REVIEWED AND ADJUSTED ACCORD-
INGLY BY THE REGIONAL COMMISSION. AT THAT TIME, THE REGIONAL  COMMISSION
MAY  APPROVE  OR  REJECT  THE  GRANT APPLICATION ACCORDING TO APPLICABLE
PROVISIONS OF THIS SECTION AND ANY APPLICABLE RULES OR REGULATIONS WHICH

A. 4135                            23

MAY BE PROMULGATED BY THE STATE CONFERENCE AND APPROVED BY MAJORITY VOTE
OF THE GOVERNOR AND LEGISLATIVE LEADERS.
  (B) IF APPROVED, AFTER THE END OF THE FIRST YEAR OF THE CONSOLIDATION,
THE  LEAD  AGENT  SHALL  PRODUCE  A REPORT WHICH SHALL STATE THE SAVINGS
WHICH THE MUNICIPALITIES HAVE EXPERIENCED DURING THE YEAR.  THAT  REPORT
SHALL  BE  SUBMITTED  TO THEIR REGIONAL COMMISSION, WHICH SHALL VALIDATE
THE SAVINGS WHICH HAVE ACCRUED TO THE LOCALITIES. SUCH SAVINGS  WILL  BE
CALCULATED  BY  COMPARING THE TOTAL AMOUNT SPENT FOR SERVICES WHICH HAVE
BEEN CONSOLIDATED WITH THE PROJECTED COST OF  THE  SERVICES  WHICH  HAVE
BEEN  CONSOLIDATED IF THE CONSOLIDATION HAD NOT OCCURRED, IN THE CASE OF
FUNCTIONAL CONSOLIDATIONS; OR THE COMBINED BUDGETS OF THE MERGED MUNICI-
PALITY, WITH THE COMBINED BUDGETS OF THE MUNICIPALITIES WHICH HAVE  BEEN
MERGED IF THE MERGER HAD NOT OCCURRED, IN THE CASE OF MERGERS.
  (C)  THE REGIONAL COMMISSION SHALL CERTIFY THE VALIDITY OF THE SAVINGS
IDENTIFIED BY THE LEAD  AGENT.  REGIONAL  COMMISSIONS  MAY  REQUEST  THE
ASSISTANCE  OF THE STATE COMPTROLLER TO VALIDATE THE SAVINGS. AFTER SUCH
SAVINGS ARE VALIDATED, THE GRANT MAY BE REWARDED TO  THE  MUNICIPALITIES
IN AN AMOUNT DETERMINED PURSUANT TO THIS SUBDIVISION.
  (D)  SUCH  PROCESS  SHALL  BE REPEATED EACH YEAR, FOR A PERIOD OF FIVE
YEARS IN THE CASE OF FUNCTIONAL CONSOLIDATIONS AND SEVEN  YEARS  IN  THE
CASE OF MERGERS.
  (E)  COOPERATION  REWARD  GRANTS  SHALL BE DETERMINED ON THE FOLLOWING
BASIS:
  (I) GRANTS TO REWARD FUNCTIONAL CONSOLIDATION, I.E., CONSOLIDATION  OF
SERVICES  BETWEEN  MUNICIPALITIES. SUCH GRANTS SHALL EQUAL FIFTY PERCENT
OF THE IDENTIFIED AND VALIDATED SAVINGS  ASSOCIATED  WITH  SUCH  CONSOL-
IDATION; AND
  (II)  GRANTS  TO  REWARD  MERGERS  BETWEEN MUNICIPALITIES. SUCH GRANTS
SHALL NOT EXCEED ONE HUNDRED PERCENT OF  THE  IDENTIFIED  AND  VALIDATED
SAVINGS ASSOCIATED WITH SUCH MERGER.
  7.  COOPERATION EFFORTS. NO PROVISION OF THIS SECTION SHALL PRECLUDE A
SCHOOL DISTRICT OR SPECIAL TAX DISTRICT FROM  PARTICIPATING  IN  CONSOL-
IDATION OR MERGER EFFORTS OR ACTIVITIES.
  S 22. This act shall take effect on the first of January next succeed-
ing  the  date  on  which it shall have become a law; provided, however,
that any costs to any school district pursuant to sections  two  through
twenty of this act shall be paid by the state.

                                 PART E

  Section  1. Notwithstanding the provisions of article 47 of the insur-
ance law, or any other provision of law to the contrary, a county  shall
be authorized to enter into a municipal cooperative agreement authorized
by  article  5-G  of  the general municipal law, with one or more school
districts, towns, or villages, in order to provide health care  benefits
or  establish  a  health  care plan for their respective employees. Such
county shall be authorized to  charge  an  administrative  fee  to  such
school  districts,  towns,  or villages for participation in such agree-
ment.
  S 2. This act shall take effect immediately.

                                 PART F

  Section 1. The real property tax  law  is  amended  by  adding  a  new
section 467-g to read as follows:

A. 4135                            24

  S  467-G. REAL PROPERTY TAX FREEZE FOR CERTAIN PERSONS OVER SIXTY-FIVE
YEARS OF AGE. 1. (A) REAL PROPERTY OWNED BY ONE OR MORE PERSONS, EACH OF
WHOM IS SIXTY-FIVE YEARS OF AGE OR  OVER,  OR  REAL  PROPERTY  OWNED  BY
HUSBAND AND WIFE, ONE OF WHOM IS SIXTY-FIVE YEARS OF AGE OR OVER, MAY BE
SUBJECT TO A TAXATION FREEZE PROVIDED THE GOVERNING BOARD OF ANY MUNICI-
PAL  CORPORATION  IN  WHICH  THE REAL PROPERTY IS LOCATED   AFTER PUBLIC
HEARING, ADOPTS A LOCAL LAW, ORDINANCE OR RESOLUTION PROVIDING THAT REAL
PROPERTY TAXES FOR SUCH PROPERTY BE FROZEN AT THE AMOUNTS PAYABLE AT THE
TIME SUCH APPLICATION FOR FREEZE IS MADE.
  (B) THE PROVISIONS OF THIS SECTION SHALL ONLY APPLY TO THE PROPERTY OF
A SENIOR CITIZEN THAT QUALIFIES FOR AND RECEIVES THE ENHANCED  EXEMPTION
PURSUANT TO SUBDIVISION FOUR OF SECTION FOUR HUNDRED TWENTY-FIVE OF THIS
TITLE.
  2. NO FREEZE SHALL BE GRANTED:
  (A) IF THE INCOME OF THE OWNER OR THE COMBINED INCOME OF THE OWNERS OF
THE  PROPERTY  FOR THE INCOME TAX YEAR IMMEDIATELY PRECEDING THE DATE OF
MAKING APPLICATION FOR THE FREEZE DOES NOT MEET THE INCOME  REQUIREMENTS
UNDER  THE  PROVISIONS OF SUBDIVISION FOUR OF SECTION FOUR HUNDRED TWEN-
TY-FIVE OF THIS TITLE;
  (B) UNLESS THE TITLE OF THE PROPERTY SHALL HAVE  BEEN  VESTED  IN  THE
OWNER  OR  ONE  OF  THE  OWNERS OF THE PROPERTY FOR AT LEAST TWENTY-FOUR
CONSECUTIVE MONTHS PRIOR TO THE DATE OF MAKING APPLICATION FOR A FREEZE,
PROVIDED, HOWEVER, THAT IN THE EVENT OF THE DEATH OF EITHER A HUSBAND OR
WIFE IN WHOSE NAME TITLE OF THE PROPERTY SHALL HAVE BEEN VESTED  AT  THE
TIME  OF  DEATH AND THEN BECOMES VESTED SOLELY IN THE SURVIVOR BY VIRTUE
OF DEVISE BY OR DESCENT FROM THE DECEASED HUSBAND OR WIFE, THE  TIME  OF
OWNERSHIP  OF  THE  PROPERTY  BY  THE  DECEASED HUSBAND OR WIFE SHALL BE
DEEMED ALSO A TIME OF OWNERSHIP BY THE SURVIVOR AND SUCH OWNERSHIP SHALL
BE DEEMED CONTINUOUS FOR THE PURPOSES OF COMPUTING SUCH PERIOD OF  TWEN-
TY-FOUR  CONSECUTIVE  MONTHS.  IN  THE  EVENT  OF A TRANSFER BY EITHER A
HUSBAND OR WIFE TO THE OTHER SPOUSE OF ALL OR PART OF THE TITLE  TO  THE
PROPERTY, THE TIME OF OWNERSHIP OF THE PROPERTY BY THE TRANSFEROR SPOUSE
SHALL  BE  DEEMED  ALSO A TIME OF OWNERSHIP BY THE TRANSFEREE SPOUSE AND
SUCH OWNERSHIP SHALL BE DEEMED CONTINUOUS FOR THE PURPOSES OF  COMPUTING
SUCH  PERIOD  OF  TWENTY-FOUR  CONSECUTIVE MONTHS. WHERE PROPERTY OF THE
OWNER OR OWNERS HAS BEEN ACQUIRED TO REPLACE PROPERTY FORMERLY OWNED  BY
SUCH  OWNER  OR  OWNERS AND TAKEN BY EMINENT DOMAIN OR OTHER INVOLUNTARY
PROCEEDING, EXCEPT A TAX SALE, THE PERIOD OF  OWNERSHIP  OF  THE  FORMER
PROPERTY  SHALL BE COMBINED WITH THE PERIOD OF OWNERSHIP OF THE PROPERTY
FOR WHICH APPLICATION IS MADE FOR A FREEZE AND SUCH PERIODS OF OWNERSHIP
SHALL BE DEEMED TO BE CONSECUTIVE FOR PURPOSES OF THIS SECTION. WHERE  A
RESIDENCE  IS  SOLD  AND  REPLACED WITH ANOTHER WITHIN ONE YEAR AND BOTH
RESIDENCES ARE WITHIN THE STATE, THE PERIOD OF OWNERSHIP OF BOTH PROPER-
TIES SHALL BE DEEMED CONSECUTIVE FOR PURPOSES OF A FREEZE FROM  TAXATION
BY  A  MUNICIPALITY  WITHIN  THE STATE GRANTING SUCH FREEZE.   WHERE THE
OWNER OR OWNERS TRANSFER TITLE TO PROPERTY  WHICH  AS  OF  THE  DATE  OF
TRANSFER  WAS EXEMPT FROM TAXATION UNDER THE PROVISIONS OF THIS SECTION,
THE REACQUISITION OF TITLE BY SUCH OWNER OR OWNERS WITHIN NINE MONTHS OF
THE DATE OF TRANSFER SHALL BE DEEMED TO SATISFY THE REQUIREMENT OF  THIS
PARAGRAPH  THAT  THE TITLE OF THE PROPERTY SHALL HAVE BEEN VESTED IN THE
OWNER OR ONE OF THE OWNERS FOR SUCH PERIOD  OF  TWENTY-FOUR  CONSECUTIVE
MONTHS.  WHERE,  UPON  OR SUBSEQUENT TO THE DEATH OF AN OWNER OR OWNERS,
TITLE TO PROPERTY WHICH AS OF THE DATE OF SUCH  DEATH  WAS  EXEMPT  FROM
TAXATION  UNDER  SUCH PROVISIONS, BECOMES VESTED, BY VIRTUE OF DEVISE OR
DESCENT FROM THE DECEASED OWNER OR OWNERS, OR BY TRANSFER BY  ANY  OTHER
MEANS WITHIN NINE MONTHS AFTER SUCH DEATH, SOLELY IN A PERSON OR PERSONS

A. 4135                            25

WHO,  AT  THE  TIME OF SUCH DEATH, MAINTAINED SUCH PROPERTY AS A PRIMARY
RESIDENCE, THE REQUIREMENT OF THIS PARAGRAPH THAT THE TITLE OF THE PROP-
ERTY SHALL HAVE BEEN VESTED IN THE OWNER OR ONE OF THE OWNERS  FOR  SUCH
PERIOD OF TWENTY-FOUR CONSECUTIVE MONTHS SHALL BE DEEMED SATISFIED;
  (C)  UNLESS THE PROPERTY IS USED EXCLUSIVELY FOR RESIDENTIAL PURPOSES,
PROVIDED, HOWEVER, THAT IN THE EVENT ANY PORTION OF SUCH PROPERTY IS NOT
SO USED EXCLUSIVELY FOR RESIDENTIAL  PURPOSES  BUT  IS  USED  FOR  OTHER
PURPOSES,  SUCH  PORTION  SHALL BE SUBJECT TO TAXATION AND THE REMAINING
PORTION ONLY SHALL BE ENTITLED TO A FREEZE PROVIDED BY THIS SECTION;
  (D) UNLESS THE REAL PROPERTY IS THE LEGAL RESIDENCE OF AND IS OCCUPIED
IN WHOLE OR IN PART BY THE OWNER OR BY ALL OF THE OWNERS OF THE  PROPER-
TY,  PROVIDED THAT AN OWNER WHO IS ABSENT WHILE RECEIVING HEALTH-RELATED
CARE AS AN INPATIENT OF A RESIDENTIAL HEALTH CARE FACILITY,  AS  DEFINED
IN  SECTION  TWENTY-EIGHT HUNDRED ONE OF THE PUBLIC HEALTH LAW, SHALL BE
DEEMED TO REMAIN A LEGAL RESIDENT AND AN OCCUPANT OF THE PROPERTY  WHILE
SO  CONFINED  AND INCOME ACCRUING TO THAT PERSON SHALL BE INCOME ONLY TO
THE EXTENT THAT IT EXCEEDS THE AMOUNT PAID BY  SUCH  OWNER,  SPOUSE,  OR
CO-OWNER  FOR  CARE  IN  THE FACILITY; AND PROVIDED FURTHER, THAT DURING
SUCH CONFINEMENT SUCH PROPERTY IS NOT OCCUPIED BY OTHER THAN THE  SPOUSE
OR CO-OWNER OF SUCH OWNER.
  3.  EACH GOVERNING BOARD OF ANY MUNICIPAL CORPORATION SHALL NOTIFY, OR
CAUSE TO BE NOTIFIED, EACH PERSON OWNING RESIDENTIAL  REAL  PROPERTY  IN
SUCH  MUNICIPAL  CORPORATION  OF  THE  PROVISIONS  OF  THIS SECTION. THE
PROVISIONS OF THIS SUBDIVISION MAY BE MET BY A NOTICE OR LEGEND SENT  ON
OR WITH EACH TAX BILL TO SUCH PERSONS READING "YOU MAY BE ELIGIBLE FOR A
SENIOR  CITIZEN  TAX FREEZE. SENIOR CITIZENS HAVE UNTIL MONTH..........,
DAY.......,   YEAR......, TO APPLY  FOR  SUCH  FREEZE.  FOR  INFORMATION
PLEASE  CALL  OR  WRITE  ....,"  FOLLOWED  BY THE NAME, TELEPHONE NUMBER
AND/OR ADDRESS OF A PERSON OR  DEPARTMENT  SELECTED  BY  THE  COUNTY  TO
EXPLAIN  THE PROVISIONS OF THIS SECTION.  FAILURE TO NOTIFY, OR CAUSE TO
BE NOTIFIED ANY PERSON WHO IS IN FACT,  ELIGIBLE  TO  RECEIVE  A  FREEZE
PROVIDED  BY  THIS  SECTION OR THE FAILURE OF SUCH PERSON TO RECEIVE THE
SAME SHALL NOT PREVENT THE  LEVY,  COLLECTION  AND  ENFORCEMENT  OF  THE
PAYMENT OF THE TAXES ON PROPERTY OWNED BY SUCH PERSON.
  4.  APPLICATION  FOR  SUCH FREEZE MUST BE MADE BY THE OWNER, OR ALL OF
THE OWNERS OF THE PROPERTY, ON FORMS PRESCRIBED BY THE STATE BOARD TO BE
FURNISHED BY THE APPROPRIATE ASSESSING AUTHORITY AND SHALL  FURNISH  THE
INFORMATION AND BE EXECUTED IN THE MANNER REQUIRED OR PRESCRIBED IN SUCH
FORMS,  AND  SHALL  BE  FILED IN SUCH ASSESSOR'S OFFICE ON OR BEFORE THE
APPROPRIATE TAXABLE STATUS DATE.
  5. AT LEAST SIXTY DAYS PRIOR TO THE APPROPRIATE TAXABLE  STATUS  DATE,
THE  ASSESSING  AUTHORITY  SHALL  MAIL  TO EACH PERSON WHO WAS GRANTED A
FREEZE PURSUANT TO THIS SECTION ON THE LATEST COMPLETED ASSESSMENT  ROLL
AN  APPLICATION FORM AND A NOTICE THAT SUCH APPLICATION MUST BE FILED ON
OR BEFORE THE TAXABLE STATUS DATE AND  BE  APPROVED  IN  ORDER  FOR  THE
FREEZE  TO BE GRANTED.  THE ASSESSING AUTHORITY SHALL, WITHIN THREE DAYS
OF THE COMPLETION AND FILING OF THE TENTATIVE ASSESSMENT ROLL, NOTIFY BY
MAIL ANY APPLICANT WHO HAS INCLUDED WITH HIS APPLICATION  AT  LEAST  ONE
SELF-ADDRESSED,  PRE-PAID  ENVELOPE,  OF  THE  APPROVAL OR DENIAL OF THE
APPLICATION; PROVIDED, HOWEVER, THAT THE ASSESSING AUTHORITY SHALL, UPON
THE RECEIPT AND FILING OF THE APPLICATION, SEND BY MAIL NOTIFICATION  OF
RECEIPT TO ANY APPLICANT WHO HAS INCLUDED TWO OF SUCH ENVELOPES WITH THE
APPLICATION.    WHERE  AN  APPLICANT  IS  ENTITLED TO A NOTICE OF DENIAL
PURSUANT TO THIS SUBDIVISION, SUCH NOTICE SHALL BE ON A FORM  PRESCRIBED
BY THE STATE BOARD AND SHALL STATE THE REASONS FOR SUCH DENIAL AND SHALL
FURTHER STATE THAT THE APPLICANT MAY HAVE SUCH DETERMINATION REVIEWED IN

A. 4135                            26

THE  MANNER  PROVIDED BY LAW.  FAILURE TO MAIL ANY SUCH APPLICATION FORM
OR NOTICES OR THE FAILURE OF SUCH PERSON TO  RECEIVE  ANY  OF  THE  SAME
SHALL NOT PREVENT THE LEVY, COLLECTION AND ENFORCEMENT OF THE PAYMENT OF
THE TAXES ON PROPERTY OWNED BY SUCH PERSON.
  6.  ANY  CONVICTION  OF  HAVING MADE ANY WILFUL FALSE STATEMENT IN THE
APPLICATION FOR SUCH FREEZE, SHALL BE PUNISHABLE BY A FINE OF  NOT  MORE
THAN  ONE  HUNDRED  DOLLARS AND SHALL DISQUALIFY THE APPLICANT OR APPLI-
CANTS FROM FURTHER FREEZES FOR A PERIOD OF FIVE YEARS.
  7. NO MUNICIPALITY SHALL ADOPT A LOCAL LAW,  ORDINANCE  OR  RESOLUTION
PURSUANT TO THIS SECTION IF SUCH MUNICIPALITY HAS IN EFFECT A LOCAL LAW,
ORDINANCE  OR RESOLUTION PERMITTING A REAL PROPERTY TAX EXEMPTION PURSU-
ANT TO SECTION FOUR HUNDRED SIXTY-SEVEN OF THIS TITLE.
  S 2. Section 467 of the real property tax law is amended by  adding  a
new subdivision 11 to read as follows:
  11.  NO  MUNICIPALITY SHALL ADOPT A LOCAL LAW, ORDINANCE OR RESOLUTION
PURSUANT TO THIS SECTION IF SUCH MUNICIPALITY HAS IN EFFECT A LOCAL LAW,
ORDINANCE OR RESOLUTION PERMITTING A REAL PROPERTY TAX  FREEZE  PURSUANT
TO SECTION FOUR HUNDRED SIXTY-SEVEN-G OF THIS ARTICLE.
  S 3. This act shall take effect on the first of February next succeed-
ing  the  date  on  which  it shall have become a law and shall apply to
assessment rolls prepared on the basis of taxable status dates occurring
on or after such date.
  S 3. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be  adjudged  by  any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall  be  confined  in
its  operation  to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would  have  been  enacted  even  if  such
invalid provisions had not been included herein.
  S  4.  This  act shall take effect immediately provided, however, that
the applicable effective date of Parts A through F of this act shall  be
as specifically set forth in the last section of such Parts.