S. 3567 2
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 4. 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 and of his disbursements, and at the annual meet-
ing of such district he shall render a full account of all moneys
received by him and from what source, and when received, and all
disbursements made by him and to whom and the dates of such disburse-
ments respectively, and the balance of moneys remaining in his hands.
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 CIRCUMSTANCES 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 1720 of the education law is amended by adding a new
subdivision 3 to read as follows:
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
S. 3567 3
TREASURER, FOR ITS ACCOUNT AND USE, AND OF ALL THE MONEYS EXPENDED
THEREFORE, 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 6. 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 CHAPTER OR SECTION TWENTY-ONE HUNDRED
TWENTY-TWO OF THIS CHAPTER 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 7. 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 THROUGH 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;
(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
S. 3567 4
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 8. 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 9. 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 under all existing employment contracts or
collective bargaining agreements, AND TEACHERS UNDER EXISTING EMPLOYMENT
CONTRACTS, any and all expenditures associated with the operation of the
office of trustee or board of trustees, the office of the superintendent
of schools, general administration, the school business office, consult-
ing 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, administrative orders or settled
or compromised claims; and all facilities costs of the school district,
including facilities lease expenditures, the annual debt service and
S. 3567 5
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 sala-
ries and benefits, service contracts, supplies, utilities, and mainte-
nance and repairs of school facilities. For the purposes of the develop-
ment 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 10. 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 under all existing employment contracts or
collective bargaining agreements, AND TEACHERS UNDER EXISTING EMPLOYMENT
CONTRACTS, any and all expenditures associated with the operation of the
board of education, the office of the superintendent of schools, general
administration, the school business office, consulting costs not direct-
ly 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, administrative orders or settled or compro-
mised 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, rehabili-
tation 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 board of education shall separate the district's program, capital
and administrative costs for the nineteen hundred ninety-seven--ninety-
S. 3567 6
eight school year in the manner as if the budget for such year had been
presented in three components.
S 11. 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 12. 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 13. 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
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,
S. 3567 7
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 14. 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" 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
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
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 FIVE
THOUSAND DOLLARS OR AN AGGREGATE ANNUAL NET ADDITIONAL COST TO ALL
SCHOOL DISTRICTS IN EXCESS OF FIVE HUNDRED THOUSAND 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
S. 3567 8
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 EXEC-
UTIVE ORDER THAT IMPLEMENTS 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 CONSIST-
ENT WITH THE NEEDS OF THE STATE AND SCHOOL DISTRICTS TO PLAN IMPLEMENTA-
TION THEREOF, AND ALSO CONSISTENT WITH THE AVAILABILITY OF REQUIRED
FUNDS.
S 15. 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.
S. 3567 9
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
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
S. 3567 10
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
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 16. 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 17. 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
S. 3567 11
appropriate action, together with any documents supporting the auditors'
findings.
S 18. 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-
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
S. 3567 12
OTHER THAN THE EMPLOYEE'S EXERCISE OF ANY RIGHTS PROTECTED BY THIS
SECTION.
S 19. 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
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 20. 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 21. 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 22. This act shall take effect January 1, 2010.