S T A T E   O F   N E W   Y O R K
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                                  1434

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 12, 2015
                               ___________

Introduced  by M. of A. JAFFEE, CAHILL -- Multi-Sponsored by -- M. of A.
  CROUCH, SOLAGES -- read once and referred to the Committee  on  Educa-
  tion

AN  ACT  to  amend  the  general municipal law and the education law, in
  relation to the creation and funding of other post-employment  benefit
  reserve funds; and to repeal certain provisions of the general munici-
  pal law relating thereto

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

  Section 1. The general municipal  law  is  amended  by  adding  a  new
section 6-t to read as follows:
  S 6-T. OTHER POST-EMPLOYMENT BENEFIT RESERVE FUNDS. 1. AS USED IN THIS
SECTION,
  (A)  "MUNICIPAL  CORPORATION" MEANS A SCHOOL DISTRICT (EXCEPT A SCHOOL
DISTRICT IN A CITY WITH A POPULATION OF ONE HUNDRED TWENTY-FIVE THOUSAND
OR MORE) OR A BOARD OF COOPERATIVE EDUCATIONAL SERVICES.
  (B) "OTHER POST-EMPLOYMENT BENEFIT" MEANS ANY  BENEFIT  OTHER  THAN  A
PENSION  BENEFIT  THAT A MUNICIPAL CORPORATION IS OBLIGATED BY CONTRACT,
LOCAL LAW, OR STATUTE TO PAY TO, OR  ON  BEHALF  OF,  AN  INDIVIDUAL  ON
ACCOUNT  OF  THAT  INDIVIDUAL'S PRIOR EMPLOYMENT BY THE MUNICIPAL CORPO-
RATION, INCLUDING POST-EMPLOYMENT HEALTHCARE BENEFITS, REGARDLESS OF THE
TYPE OF PLAN THAT PROVIDES THEM, BUT EXCLUDING TERMINATION BENEFITS SUCH
AS THOSE DESCRIBED IN SECTION SIX-P OF THIS ARTICLE.
  (C) "PARTICIPATING EMPLOYER" MEANS A PARTICIPATING EMPLOYER AS DEFINED
IN SUBDIVISION TWENTY OF SECTION TWO OF THE RETIREMENT AND SOCIAL  SECU-
RITY  LAW  OR IN SUBDIVISION TWENTY OF SECTION THREE HUNDRED TWO OF SUCH
LAW.
  2. THE GOVERNING BOARD OF ANY MUNICIPAL CORPORATION WHICH  IS  ALSO  A
PARTICIPATING  EMPLOYER  MAY  ESTABLISH BY RESOLUTION A RESERVE FUND FOR
THE PURPOSE OF FINANCING OTHER POST-EMPLOYMENT BENEFITS.
  3. THERE MAY BE PAID INTO AN  OTHER  POST-EMPLOYMENT  BENEFIT  RESERVE
FUND:
  (A)  SUCH  AMOUNTS  AS MAY BE PROVIDED THEREFOR BY BUDGETARY APPROPRI-
ATION OR RAISED BY TAX THEREFOR;

              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06128-01-5

A. 1434                             2

  (B) SUCH REVENUES AS ARE NOT REQUIRED BY LAW TO BE PAID INTO ANY OTHER
FUND OR ACCOUNT;
  (C) SUCH OTHER FUNDS AS MAY BE LEGALLY APPROPRIATED; AND
  (D)  NOTWITHSTANDING  ANY  LAW TO THE CONTRARY, SUCH AMOUNTS AS MAY BE
TRANSFERRED FROM A RESERVE FUND ESTABLISHED PURSUANT TO  SECTION  SIX-C,
SIX-D,  SIX-E,  SIX-F,  SIX-G,  SIX-M,  SIX-N,  OR SIX-P OF THIS ARTICLE
COMPRISED OF MONEYS RAISED FROM THE SAME TAX BASE AS THE MONEYS  IN  THE
OTHER  POST-EMPLOYMENT  BENEFIT  RESERVE  FUND, OR A RESERVE FUND ESTAB-
LISHED PURSUANT TO SECTION THIRTY-SIX HUNDRED FIFTY-ONE OF THE EDUCATION
LAW, PROVIDED, THAT ANY SUCH TRANSFER SHALL ONLY BE MADE  BY  RESOLUTION
OF  THE  GOVERNING  BOARD  OF SUCH MUNICIPAL CORPORATION ADOPTED AFTER A
PUBLIC HEARING HELD ON AT LEAST FIFTEEN DAYS PRIOR PUBLISHED  NOTICE  IN
THE  OFFICIAL NEWSPAPER OF THE MUNICIPAL CORPORATION  OR, IF THE MUNICI-
PAL CORPORATION DOES NOT HAVE AN OFFICIAL NEWSPAPER,  IN  AT  LEAST  ONE
NEWSPAPER HAVING GENERAL CIRCULATION IN THE MUNICIPAL CORPORATION.
  4. THE MONEYS IN ANOTHER POST-EMPLOYMENT BENEFIT RESERVE FUND SHALL BE
DEPOSITED  AND  SECURED  IN  THE  MANNER PROVIDED BY SECTION TEN OF THIS
ARTICLE, THE GOVERNING BOARD OF SUCH MUNICIPAL CORPORATION, OR THE CHIEF
FISCAL OFFICER THEREOF IF THE GOVERNING BOARD SHALL DELEGATE  SUCH  DUTY
TO HIM OR HER, MAY INVEST THE MONEYS IN SUCH FUND IN THE MANNER PROVIDED
BY  SECTION  ELEVEN OF THIS ARTICLE, ANY INTEREST EARNED OR CAPITAL GAIN
REALIZED ON THE MONEY SO DEPOSITED  OR  INVESTED  SHALL  ACCRUE  TO  AND
BECOME PART OF SUCH FUND.
  5. THE GOVERNING BOARD OF SUCH MUNICIPAL CORPORATION BY RESOLUTION MAY
AUTHORIZE EXPENDITURES FROM ANOTHER POST-EMPLOYMENT BENEFIT RESERVE FUND
EXCEPT  AS  OTHERWISE PROVIDED BY LAW, MONEYS IN ANOTHER POST-EMPLOYMENT
BENEFIT RESERVE FUND MAY ONLY BE EXPENDED TO FINANCE OTHER  POST-EMPLOY-
MENT BENEFITS.
  6. THE GOVERNING BOARD OF SUCH MUNICIPAL CORPORATION BY RESOLUTION MAY
AUTHORIZE  THE  TRANSFER  OF A PORTION OF THE MONEYS IN ANOTHER POST-EM-
PLOYMENT BENEFIT RESERVE FUND TO A RESERVE FUND OF THE MUNICIPAL  CORPO-
RATION  ESTABLISHED  PURSUANT  TO  SECTION  SIX-C,  SIX-D, SIX-E, SIX-F,
SIX-G, SIX-M, SIX-N, OR SIX-P OF THIS ARTICLE COMPRISED OF MONEYS RAISED
FROM THE SAME TAX BASE AS THE  MONEYS  IN  THE  RETIREMENT  CONTRIBUTION
RESERVE  FUNDS,  OR A RESERVE FUND ESTABLISHED PURSUANT TO SECTION THIR-
TY-SIX HUNDRED FIFTY-ONE OF THE EDUCATION LAW, PROVIDED, THAT  ANY  SUCH
TRANSFER SHALL ONLY BE MADE BY RESOLUTION OF THE GOVERNING BOARD OF SUCH
MUNICIPAL  CORPORATION  ADOPTED  AFTER A PUBLIC HEARING HELD ON AT LEAST
FIFTEEN DAYS PRIOR PUBLISHED NOTICE IN THE  OFFICIAL  NEWSPAPER  OF  THE
MUNICIPAL  CORPORATION OR, IF THE MUNICIPAL CORPORATION DOES NOT HAVE AN
OFFICIAL NEWSPAPER, IN AT LEAST ONE NEWSPAPER HAVING GENERAL CIRCULATION
IN THE MUNICIPAL CORPORATION.
  7. THE CHIEF  FISCAL  OFFICER  OF  SUCH  MUNICIPAL  CORPORATION  SHALL
ACCOUNT  FOR  ANOTHER  POST-EMPLOYMENT BENEFIT RESERVE FUND SEPARATE AND
APART FROM ALL OTHER FUNDS OF THE MUNICIPAL CORPORATION SUCH  ACCOUNTING
SHALL  SHOW: THE SOURCE, DATE AND AMOUNT OF EACH SUM PAID INTO THE FUND;
THE INTEREST EARNED BY SUCH FUND; CAPITAL GAINS OR LOSSES RESULTING FROM
THE SALE OF INVESTMENTS OF THIS FUND; THE ORDER, PURPOSE  THEREOF,  DATE
AND AMOUNT OF EACH PAYMENT FROM SUCH FUND; THE ASSETS OF THE FUND, INDI-
CATING CASH BALANCE AND A SCHEDULE OF INVESTMENTS.
  THE  CHIEF FISCAL OFFICER, WITHIN SIXTY DAYS OF THE END OF EACH FISCAL
YEAR, SHALL FURNISH A DETAILED REPORT OF THE OPERATION AND CONDITION  OF
THIS FUND TO THE GOVERNING BOARD.
  8.  NO  MEMBER  OF  THE  GOVERNING BOARD OF SUCH MUNICIPAL CORPORATION
SHALL:

A. 1434                             3

  (A) AUTHORIZE A  WITHDRAWAL  FROM  AN  OTHER  POST-EMPLOYMENT  BENEFIT
RESERVE FUND FOR ANY PURPOSE EXCEPT AS PROVIDED IN THIS SECTION; OR
  (B) EXPEND ANY MONEY WITHDRAWN FROM SUCH FUND FOR A PURPOSE OTHER THAN
AS PROVIDED IN THIS SECTION.
  9. THE GOVERNING BOARD OF SUCH MUNICIPAL CORPORATION BY RESOLUTION MAY
DETERMINE THAT AN OTHER POST-EMPLOYMENT BENEFIT RESERVE FUND IS NO LONG-
ER  NEEDED  AND  TERMINATE  THE FUND. SUCH RESOLUTION SHALL TRANSFER ANY
MONEYS REMAINING IN SUCH FUND TO ONE OR MORE RESERVE FUNDS OF THE MUNIC-
IPAL CORPORATION ESTABLISHED PURSUANT TO SECTION  SIX-C,  SIX-D,  SIX-E,
SIX-F, SIX-I, SIX-M, SIX-N, OR SIX-P OF THIS ARTICLE COMPRISED OF MONEYS
RAISED FROM THE SAME TAX BASE AS THE MONEYS IN THE OTHER POST-EMPLOYMENT
BENEFIT  RESERVE FUND, OR ONE OR MORE RESERVE FUNDS ESTABLISHED PURSUANT
TO SECTION THIRTY-SIX HUNDRED FIFTY-ONE OF THE EDUCATION LAW.
  S 2. Notwithstanding any other provision of law, within  180  days  of
the  effective  date  of this act, a municipal corporation may by resol-
ution transfer into  an  other  post-employment  benefits  reserve  fund
created  in accordance with section 6-t of the general municipal law any
funds previously committed or assigned by that municipal corporation for
the purpose of paying  other  post-employment  benefits  as  defined  in
section  6-t of the general municipal law, regardless of how those funds
have been designated.
  S 3. Subdivisions 10 and 11 of section 6-p of  the  general  municipal
law are REPEALED.
  S  4.  Paragraph  b  of subdivision 5 of section 1950 of the education
law, as amended by section 80-a of part A of chapter 58 of the  laws  of
2011, is amended to read as follows:
  b.  The  cost of services herein referred to shall be the amount allo-
cated to each component school district  by  the  board  of  cooperative
educational  services to defray expenses of such board, except that that
part of the salary paid any teacher, supervisor or other employee of the
board of cooperative educational services which is in excess  of  thirty
thousand  dollars shall not be such an approved expense, and except also
that administrative and clerical expenses shall not exceed  ten  percent
of  the  total  expenses  for  purposes  of this computation. Any gifts,
donations or interest earned by the  board  of  cooperative  educational
services  or  on behalf of the board of cooperative educational services
by the dormitory authority or any other source shall not be deducted  in
determining  the  cost  of  services  allocated to each component school
district. [Any payments made to a component school district by the board
of cooperative educational services pursuant to  subdivision  eleven  of
section  six-p  of the general municipal law attributable to an approved
cost of service computed pursuant to this subdivision shall be  deducted
from  the cost of services allocated to such component school district.]
The expense of transportation  provided  by  the  board  of  cooperative
educational services pursuant to paragraph q of subdivision four of this
section  shall  be  eligible for aid apportioned pursuant to subdivision
seven of section thirty-six hundred two of this chapter and no board  of
cooperative  educational  services  transportation  expense  shall be an
approved cost of services for the computation of aid under this subdivi-
sion. Transportation expense pursuant to paragraph q of subdivision four
of this section shall be included in the computation of the ten  percent
limitation on administrative and clerical expenses.
  S 5. This act shall take effect immediately.