S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9999--A
 
                           I N  A S S E M B L Y
 
                               March 7, 2018
                                ___________
 
 Introduced  by  M. of A. PAULIN, DINOWITZ, SEAWRIGHT, BUCHWALD -- Multi-
   Sponsored by -- M. of A. COOK, CROUCH -- read once and referred to the
   Committee on Corporations, Authorities and Commissions -- reported and
   referred to the Committee  on  Codes  --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee

 AN ACT to amend the public authorities law, in relation  to  authorizing
   the authorities budget office to suspend local authority board members
   and executive staff
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The public authorities law  is  amended  by  adding  a  new
 section 6-a to read as follows:
   §  6-A.  POWER  TO SUSPEND LOCAL AUTHORITY BOARD MEMBERS AND EXECUTIVE
 STAFF. 1. THE  AUTHORITIES  BUDGET  OFFICE  SHALL  HAVE  THE  AUTHORITY,
 SUBJECT  TO  SUBDIVISION  TWO  OF  THIS  SECTION, TO SUSPEND ONE OR MORE
 MEMBERS OF A LOCAL AUTHORITY BOARD OF DIRECTORS, OR THE CHIEF  EXECUTIVE
 OFFICER  OR EQUIVALENT POSITION OF A LOCAL AUTHORITY FOR A PERIOD NOT TO
 EXCEED NINETY DAYS WHEN SUCH INDIVIDUAL OR INDIVIDUALS  KNOWINGLY  FAILS
 OR  NEGLECTS  TO  SUBMIT  ANY  REPORT  REQUIRED  BY SECTION TWENTY-EIGHT
 HUNDRED OF THIS CHAPTER WITHIN THIRTY-SIX MONTHS OF ITS  DUE  DATE.  THE
 AUTHORITIES  BUDGET  OFFICE IS AUTHORIZED TO TERMINATE SUCH A SUSPENSION
 IF THE BOARD MEMBER OR CHIEF EXECUTIVE OFFICER DEMONSTRATES THAT  HE  OR
 SHE HAS REMEDIED THEIR NON-COMPLIANCE. FOR THE PURPOSES OF THIS SECTION,
 THE  "SUSPENSION"  OF  AN INDIVIDUAL SHALL MEAN THE TEMPORARY REMOVAL OF
 THE RIGHTS, RESPONSIBILITIES, POWERS AND DUTIES OF A PERSON  WHO  IS  AN
 APPOINTED BOARD MEMBER OF A LOCAL AUTHORITY OR THE INDIVIDUAL WHO SERVES
 AS  CHIEF  EXECUTIVE OFFICER THROUGH APPOINTMENT OR CONTRACT. SHOULD THE
 AUTHORITIES BUDGET OFFICE SUSPEND THE  FULL  BOARD  OF  DIRECTORS  OR  A
 MAJORITY  OF  CURRENT BOARD MEMBERS THE TERM "SUSPENSION" SHALL MEAN THE
 BOARD OF DIRECTORS IS PROHIBITED FROM TAKING ACTIONS, VOTES, OR ADOPTING
 RESOLUTIONS, THAT BIND THE BOARD TO FUTURE AGREEMENTS, CONTRACTS, FINAN-
 CIAL COMMITMENTS, INDEBTEDNESS, OR OTHER  ACTIONS,  OTHER  THAN  ACTIONS
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07597-02-8

 A. 9999--A                          2
 
 NECESSARY  TO  RESOLVE  THE  NONCOMPLIANCE  OR SATISFY EXISTING LEGAL OR
 ADMINISTRATIVE OBLIGATIONS.
   2.  (A)  PURSUANT TO POLICIES AND PROCEDURES DEVELOPED BY THE AUTHORI-
 TIES BUDGET OFFICE AND MADE AVAILABLE ON ITS WEBSITE, WHEN THE  AUTHORI-
 TIES  BUDGET OFFICE HAS REASON TO BELIEVE THAT ONE OR MORE BOARD MEMBERS
 OF A LOCAL AUTHORITY HAS KNOWINGLY FAILED OR  NEGLECTED  TO  SUBMIT  ANY
 REPORT  REQUIRED  BY SECTION TWENTY-EIGHT HUNDRED OF THIS CHAPTER WITHIN
 THIRTY-SIX MONTHS OF ITS DUE DATE, THE AUTHORITIES BUDGET  OFFICE  SHALL
 PROVIDE  AT  LEAST THIRTY DAYS' NOTICE OF ITS INTENT TO INITIATE SUSPEN-
 SION PROCEEDINGS TO THE CHAIRPERSON OF THE LOCAL AUTHORITY, TO THE INDI-
 VIDUAL OR INDIVIDUALS RESPONSIBLE FOR APPOINTING SUCH BOARD MEMBERS, AND
 TO EACH SUCH BOARD MEMBER. IF THE AUTHORITIES BUDGET OFFICE  HAS  REASON
 TO  BELIEVE  THAT  THE  CHIEF EXECUTIVE OFFICER OF A LOCAL AUTHORITY HAS
 KNOWINGLY FAILED OR NEGLECTED TO SUBMIT ANY REPORT REQUIRED  BY  SECTION
 TWENTY-EIGHT HUNDRED OF THIS CHAPTER WITHIN THIRTY-SIX MONTHS OF ITS DUE
 DATE,  THE AUTHORITIES BUDGET OFFICE SHALL PROVIDE AT LEAST THIRTY DAYS'
 NOTICE OF ITS INTENT TO INITIATE SUSPENSION PROCEEDINGS  TO  THE  CHAIR-
 PERSON  OF  THE LOCAL AUTHORITY AND TO THE CHIEF EXECUTIVE OFFICER. SUCH
 NOTICE SHALL INCLUDE, BUT SHALL NOT BE LIMITED TO (I)  THE  DATE  AND  A
 BRIEF  DESCRIPTION  OF  THE  FACTS AND NATURE OF EACH NON-COMPLIANCE FOR
 WHICH SUCH SUSPENSION IS PROPOSED; (II) THE  NUMBER  OF  DAYS  THAT  THE
 AUTHORITIES BUDGET OFFICE PROPOSES TO SUSPEND SUCH BOARD MEMBER OR CHIEF
 EXECUTIVE  OFFICER;  (III) THE OPTION TO SUBMIT A FORMAL RESPONSE TO THE
 AUTHORITIES BUDGET OFFICE WHICH DEMONSTRATES WHY SUCH  BOARD  MEMBER  OR
 CHIEF EXECUTIVE OFFICER SHOULD NOT BE SUSPENDED; AND (IV) IF APPLICABLE,
 A  PERIOD OF TIME IN WHICH SUCH LOCAL AUTHORITY OR BOARD MEMBER OR CHIEF
 EXECUTIVE OFFICER MAY REMEDY THE NON-COMPLIANCE.
   (B) IF, AFTER THE EXPIRATION OF THE DEADLINE SET FORTH IN  THE  NOTICE
 OF  INTENT PURSUANT TO SUBPARAGRAPH (IV) OF PARAGRAPH (A) OF THIS SUBDI-
 VISION, THE BOARD MEMBER OR MEMBERS OR CHIEF EXECUTIVE OFFICER, WHICHEV-
 ER IS APPLICABLE, HAS NOT RESPONDED TO THE NOTICE OR  HAS  NOT  REMEDIED
 THE NON-COMPLIANCE TO THE SATISFACTION OF THE AUTHORITIES BUDGET OFFICE,
 THE  AUTHORITIES  BUDGET  OFFICE  SHALL ISSUE TO THE NON-COMPLIANT BOARD
 MEMBER OR MEMBERS OR CHIEF EXECUTIVE  OFFICER  A  NOTICE  OF  SUSPENSION
 WHICH  SHALL INCLUDE: (I) THE NUMBER OF DAYS OF SUSPENSION; AND (II) THE
 DATE THAT SUCH SUSPENSION SHALL COMMENCE, WHICH DATE SHALL BE  AT  LEAST
 ONE  HUNDRED  EIGHTY DAYS FROM THE DATE OF THE ISSUANCE OF THE NOTICE OF
 SUSPENSION.
   3. (A) WHENEVER THE AUTHORITIES BUDGET OFFICE  HAS  SUSPENDED  ONE  OR
 MORE  BOARD  MEMBERS OF A LOCAL AUTHORITY, THE INDIVIDUAL OR INDIVIDUALS
 WHO APPOINTED THOSE BOARD MEMBERS MAY ACT TO REINSTATE A SUSPENDED BOARD
 MEMBER. IF THE APPOINTING AUTHORITY IS A LEGISLATIVE BODY OR A MEMBER OF
 THE LEGISLATIVE BODY, ANY ACTION TO REINSTATE A SUSPENDED  BOARD  MEMBER
 SHALL  OCCUR  IN A PUBLIC MEETING OF SUCH BODY AND FOLLOWING AN OPPORTU-
 NITY FOR THE PUBLIC TO COMMENT. SUCH ACTION SHALL BE DEEMED  VALID  UPON
 PASSAGE  OF  A  WRITTEN  RESOLUTION  OF  REINSTATEMENT BY A MAJORITY AND
 RECORDED VOTE OF THE LEGISLATIVE BODY. SUCH  RESOLUTION  SHALL  DESCRIBE
 THE  FACTS  AND  CIRCUMSTANCES BY WHICH THE LEGISLATIVE BODY HAS REACHED
 THIS DETERMINATION. IF THE APPOINTING AUTHORITY IS THE  CHIEF  EXECUTIVE
 OFFICIAL  OF  THE MUNICIPALITY FOR WHOSE BENEFIT THE LOCAL AUTHORITY WAS
 CREATED, ANY ACTION TO REINSTATE  A  SUSPENDED  BOARD  MEMBER  SHALL  BE
 THROUGH  AN OFFICIAL ACT OF THE CHIEF EXECUTIVE OFFICIAL. SUCH ACT SHALL
 BE RECORDED IN WRITING AND SHALL DESCRIBE THE FACTS AND CIRCUMSTANCES BY
 WHICH THE CHIEF EXECUTIVE OFFICIAL REACHED THIS DETERMINATION.
   (B) WHENEVER THE AUTHORITIES BUDGET OFFICE  HAS  SUSPENDED  THE  CHIEF
 EXECUTIVE  OFFICER  OF  A LOCAL AUTHORITY, THE CHAIRPERSON OF SUCH LOCAL

 A. 9999--A                          3
 
 AUTHORITY MAY INITIATE ACTION TO REINSTATE THE SUSPENDED CHIEF EXECUTIVE
 OFFICER. ANY ACTION TO REINSTATE A  SUSPENDED  CHIEF  EXECUTIVE  OFFICER
 SHALL  OCCUR IN A PUBLIC MEETING OF THE BOARD OF DIRECTORS AND FOLLOWING
 AN  OPPORTUNITY  FOR  THE PUBLIC TO COMMENT. SUCH ACTION SHALL BE DEEMED
 VALID UPON PASSAGE OF A WRITTEN RESOLUTION OF REINSTATEMENT BY A MAJORI-
 TY AND RECORDED VOTE OF THE CURRENT BOARD OF DIRECTORS. SUCH  RESOLUTION
 SHALL  DESCRIBE THE FACTS AND CIRCUMSTANCES BY WHICH THE BOARD OF DIREC-
 TORS REACHED THIS DETERMINATION.
   (C) FOR THE PURPOSES OF THIS SECTION, "REINSTATEMENT" SHALL  MEAN  THE
 RESTORATION  OF  THE  RIGHTS,  RESPONSIBILITIES,  POWERS AND DUTIES OF A
 BOARD MEMBER OR CHIEF EXECUTIVE OFFICER OF A LOCAL AUTHORITY.
   § 2. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.