NY State Senate Bill 2017-S2308

Archive: Last Bill Status - In Senate Committee Local Government Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to local government
Apr 25, 2017	reported and committed to finance
Mar 13, 2017	notice of committee consideration - requested
Jan 13, 2017	referred to local government

Votes

- Apr 25, 2017 - Local Government Committee Vote
  S2308
  
  4
  
  Aye
  
  2
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Local Government Committee Vote: Apr 25, 2017
      
      aye (4)
      
      Brooks
      
      Carlucci
      
      Kaminsky
      
      Latimer
      
      nay (2)
      
      Murphy
      
      Ortt
      
      aye wr (2)
      
      Marchione
      
      Ritchie
      
      excused (1)
      
      Boyle

2017-S2308 (ACTIVE) - Details

See Assembly Version of this Bill:: A3869
Current Committee:: Senate Local Government
Law Section:: Nassau County
Versions Introduced in Other Legislative Sessions:: 2015-2016: A10743
2019-2020: S1713, A2508
2021-2022: A2454
2023-2024: A2088

2017-S2308 (ACTIVE) - Summary

Authorizes a state monitor for the town of Oyster Bay to provide direct oversight of the fiscal policies, practices, programs and decisions of the town of Oyster Bay.

2017-S2308 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S2308

 TITLE OF BILL :

An act authorizing the comptroller to appoint a state monitor to
oversee the town of Oyster Bay and establishing the powers and duties
of the state monitor; and providing for the repeal of such provisions
upon expiration thereof

 PURPOSE :

To authorize the state comptroller to appoint a state monitor to
oversee the Town of Oyster Bay and establish the powers and duties of
the state monitor.

 SUMMARY OF PROVISIONS :

Section 1: Definitions.

Section 2: The State Monitor.

(A) The Comptroller shall appoint a state monitor to provide direct
oversight of the fiscal policies, practices, programs and decisions of
the Town of Oyster Bay, the Town board and the supervisor. The state
monitor will serve at the pleasure of the State Comptroller.  The
Comptroller will also provide technical support and assistance if

requested by the monitor. The Comptroller has 90 days following the
effective date of this act.

(B) The Comptroller has the authority to appoint an interim monitor
during the search for a permanent monitor or in the event of
resignation, death, incapacity, or any other reason that causes the
monitor to be unable to perform his or her duties. Any interim monitor
shall have the powers and duties of a state monitor.

(C) The state monitor, and staff, shall be paid a fixed salary set by
the Comptroller and shall be reimbursed for actual expenses during
their duties including travel and supplies. The costs associated with
the implementation of this act shall be borne by the Town of Oyster
Bay from an appropriation for that purpose.

(D) The earning limitations applicable to the employment of persons in
a position or positions in public service in any calendar year while
retired and receiving a retirement allowance shall not apply to any
appointment authorized by this act.

(E) The state monitor and his or her staff shall be considered state
employees as defined in the public officer's law.

Section 3: State Monitor Powers.

(a) Propose resolution or course of action to be considered by the
board or supervisor if the course of action or resolution is necessary
to carry out their duties and for the fiscal stability of the Town.
The board must vote within 14 days of receiving, or the next regularly
scheduled board meeting.

(b) Review and make recommendations on the operation, management,
efficiency and productivity of the Town, or subsidiary organization.

(c) Issue Bonds.

(d) Consult with the locality during the budget making process,
including authority to approve or reject budgets and required
multiyear financial plans.

(e) Comment on proposed borrowing and collective bargaining
agreements.

(f) Override decisions by the board or supervisor if he or she finds
that such override is necessary. Issue a directive, including specific
findings as to the necessity of an override.

(g) Shall have access to all Town documents, records, electronic info
systems, databases, and planning documents without charge.

(h) Direct the board or supervisor to undergo any training as deemed
necessary.

(i) Hire staff necessary to assist in carrying out their duties, the
staffing plan to be approval by the Comptroller.

(j) Hold public hearings or forums on town fiscal matters.

(k) Conduct any relevant studies, reports and reviews of the town
fiscal matters.

Section 4: State Monitor Duties.

(A) Develop and implement a five year strategic fiscal improvement
plan in consultation with the comptroller and the board. Within 6
months from date of appointment.

(B) Attend all meetings of the board including executive sessions. The
monitor shall be deemed a non-voting member of the board and shall be
entitled to sit with and attend any events that the board does.

(C) Supervise the fiscal and operational management of the Town
including but not limited to the budget.

(D) Submit an annual report and quarterly updates to the board,
comptroller, governor, the temporary president of the senate, and the
speaker of the assembly on the progress of the fiscal improvement
plan, actions undertaken by the monitor, any financial information the
monitor deems appropriate and other town matters of importance.

Section 5: Appeal process for monitor decisions.

All decisions made by the monitor, including overrides, shall be final
and conclusive unless and until modified or reversed in an appeal to
the Comptroller. If the board alleges that a reversal of a board or
supervisor decision by the monitor violates the regulations of the
Comptroller, or the terms of the certified 5 year fiscal plan, the
board may appeal by petition to the Comptroller.

Section 6: Regulations.

The comptroller is authorized to promulgate regulations and
immediately take actions as necessary to implement this act.

Section 7: Appointment Period.

A period of at least 5 years from the initial state monitor's
appointment. At the expiration if the period the comptroller can
extend the appointment for an additional period of time in intervals
of 5.

Section 8: Effective date.

 JUSTIFICATION :


The Town of Oyster Bay has had a troubling history of fiscal
mismanagement. It has had a structurally unbalanced budget for over
six years and most of its operating funds have carried negative
balances. Poor fiscal management, unrealistic budgeting and ballooning
debt have led Oyster Bay to become the only municipality in the state
with a junk credit rating from Standard & Poor. The Town of Oyster
Bay's credit rating has fallen so precipitously because of financial
mismanagement, debt mismanagement and has suffered attendant cash flow
deficiencies. It is the only Long Island Town cited as having weak
management. According to the State Comptroller's Office, Oyster Bay
has no long-term debt policy and has accumulated more new debt from
2005 to 2014 than all other Long Island cities and towns combined.
Furthermore, when the financial crisis hit, Oyster Bay depleted its
reserves and then relied on short-term borrowing since 2011 to pay its
basic operating expenses.

Oyster Bay's credit rating has dropped six notches since 2011 when
Standard & Poor had given it the highest possible rating, AAA. The
downgrades were because of the Town's deteriorating finances and
repetitive failures to adjust its budget to offset declining revenues.
The total bonded debt in 2014 was $717.4 million compared to $366.2
million in 2010; an increase of 96 percent. According to a report from
Standard & Poor, "Oyster Bay has had 10 consecutive years of audited
operating deficits in its general fund, and as a result, financial
reserves and liquidity have significantly deteriorated."  The
operating deficit in Oyster Bay's general fund for the 2012 fiscal
year was $10.3 million with a credit rating lowered to A. For the 2013
fiscal year there was $16 million operating debt in the general fund
and their rating lowered to A-. For the 2014 fiscal year the operating
debt in the general fund was $19 million with their credit rating
lowered to BBB. Now in 2016 the town has been downgraded to junk
status with a BB+ credit rating.

An unprecedented and grotesquely dangerous element contributing to
Oyster Bay's junk credit rating is that the Town Government obligated
itself to pay the debts of Harendra Singh, a restauranteur with Town
concession agreements which contained largely or wholly undisclosed
loan guarantees of $14.6 million for his S.R.B Concession Inc.
businesses, including the food concessions he ran on the Town beaches
and golf course. It is important to note that the Town board members
voted unanimously to extend its contracts with Singh in 2014 despite
Singh's companies being eight months late and more than $180,000
behind on rent and utility payments to Oyster Bay. Unsurprisingly,
when SRB defaulted, its creditors placed a $14.6 million burden on the
Town of Oyster Bay. Oyster Bay had assumed the defaulting loans. The
Town credit rating sank to junk bond status. Singh was indicted in the
United States District Court on felony counts including bribing a
former Town of Oyster Bay Deputy Attorney with $50,000 in checks made
out to cash and a $36,000 lease for a luxury car.

In response, the Town Supervisor placed Councilman Joseph G. Pinto,
the Town Board's liaison to the Comptroller's Office, in charge of a
task force charged with developing a plan of remediation. Absent from
the task force are independent members. A fair and objective task
force should be composed of individuals who would prosecute their work
in an unbiased and non-political manner, without the appearance or
danger of conflict of interest. Councilman Pinto is part and parcel of
the Town Council that facilitated this crisis.

In October 2016, Town Supervisor John Venditto was indicted in the
United States District Court on thirteen counts, including conspiracy
to commit federal program bribery, wire fraud, obstructing justice and
making false statements. Supervisor Venditto resigned in January 2017.



The appointment of a state monitor for the Town of Oyster Bay is
necessary to ensure the fiscal stability and health of a municipality
that is in imminent danger.

 FISCAL IMPLICATIONS :

None to the state.

 LEGISLATIVE HISTORY :

New Bill.

 EFFECTIVE DATE :
This act shall take effect immediately and shall expire and be deemed
repealed December 31, 2026.

2017-S2308 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2308
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2017
                                ___________
 
 Introduced  by  Sen.  BROOKS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT authorizing the comptroller to appoint a state monitor to oversee
   the town of Oyster Bay and establishing the powers and duties  of  the
   state  monitor;  and  providing for the repeal of such provisions upon
   expiration thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Definitions. For the purposes of this act:
   (a)  "State  monitor"  or  "monitor"  shall  mean the person appointed
 pursuant to section two of this act, or an interim person  appointed  to
 such position.
   (b) "Board" shall mean the town board of the town of Oyster Bay.
   (c) "Supervisor" shall mean the supervisor of the town of Oyster Bay.
   § 2. Appointment. (a) The comptroller shall appoint a state monitor to
 provide direct oversight of the fiscal policies, practices, programs and
 decisions  of the town of Oyster Bay, the town board and the supervisor,
 within ninety days following the effective date of this act.  The  comp-
 troller  shall provide the monitor with technical support and assistance
 for the purposes of carrying out his or her duties under  this  act,  if
 requested  by  the  state  monitor. The state monitor shall serve at the
 pleasure of the comptroller.
   (b) The comptroller shall have the authority to appoint a state  moni-
 tor  on  an  interim basis during the search for a permanent appointment
 and in the event of resignation, death, incapacity, or any other  reason
 which  causes  the monitor to be unable to perform his or her duties and
 until such time as a permanent state monitor  is  appointed.  Any  state
 monitor  appointed  on an interim basis shall have the powers and duties
 of the state monitor contained in this act.
   (c) The state monitor, including his or her staff,  shall  be  paid  a
 fixed  salary  set by the comptroller and shall be reimbursed for actual
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06651-01-7

 S. 2308                             2
 
 expenses incurred in the performance of  his  or  her  duties  including
 travel  and  supplies.  The  costs associated with the implementation of
 this act shall be borne by the town of Oyster Bay.
   (d) Notwithstanding any other provision of general or special law, the
 earnings limitations contained in any such general or special law, local
 law  and/or  charter  and  applicable  to the employment of persons in a
 position or positions in public  service  in  any  calendar  year  while
 retired  and  receiving  a  retirement  allowance shall not apply to any
 appointment authorized by this act. If applicable, the state monitor may
 continue as retired and without loss, suspension or diminution of his or
 her retirement allowance provided that  such  individual  is  granted  a
 waiver of retirement earnings limitation by the comptroller.
   (e)  For  the  purposes  of this act, the state monitor and his or her
 staff shall be considered state employees as defined in the public offi-
 cers law.
   § 3. State monitor powers. The state monitor shall have the power to:
   (a) Propose a resolution or course of action to be considered  by  the
 town board or supervisor if the state monitor finds that such resolution
 or course of action is necessary in order to carry out his or her duties
 required  by  this  act and is necessary for the fiscal stability of the
 town. If such resolution or course of action is proposed, the board must
 vote on the proposed resolution or course of action within fourteen days
 of receiving such resolution, or at the next regularly  scheduled  board
 meeting.
   (b)  Review  and  make  recommendations  on the operation, management,
 efficiency and productivity of the relevant municipality and any subsid-
 iary organization.
   (c) Issue bonds.
   (d) Consult with the locality during  the  budget-making  process  and
 make  recommendations.   The monitor shall have the authority to approve
 or reject budgets and required multi-year financial plans.
   (e) Comment on  the  proposed  borrowings  and  collective  bargaining
 agreements.
   (f)  Override  decisions by the board or supervisor if he or she finds
 that such override is necessary in order to carry out his or her  duties
 required  by  this  act and is necessary for the fiscal stability of the
 town. The state monitor may override a decision by the board or supervi-
 sor by issuing a directive, which must include specific findings  as  to
 the necessity of such override. The board may appeal the state monitor's
 override in accordance with section five of this act.
   (g)  Access  all  town  documents  and  records.  Town personnel shall
 provide any and all documents requested by the state monitor or  his  or
 her  designee without charge, and the state monitor shall have access to
 all electronic information systems, databases, and  planning  documents.
 The  monitor  shall  maintain  the  security  and confidentiality of all
 information protected from disclosure by federal or state law  or  regu-
 lation.
   (h)  Direct the board and supervisor to undergo any training as deemed
 necessary and pursuant to timelines established by the state monitor.
   (i) Hire staff necessary to assist in carrying out the state monitor's
 duties required by this act, subject to a staffing plan approved by  the
 comptroller.
   (j) Hold public hearings or forums on town fiscal matters as he or she
 deems necessary.
   (k)  Conduct any relevant studies, reports, and reviews of town fiscal
 matters.

 S. 2308                             3
 
   § 4. State monitor duties. The state monitor shall have the  following
 duties:
   (a)  Develop  and  implement  a five-year strategic fiscal improvement
 plan in consultation with the  comptroller  and  the  board  within  six
 months from the date of appointment.
   1. The monitor shall hold at least one public hearing within the town,
 prior  to  the  certification  of the plan by the state monitor, for the
 purpose of presenting the contents of the improvement plan  and  seeking
 public  comment on its contents. The supervisor shall ensure that notice
 for the public hearing or hearings are posted in a  manner  to  maximize
 the participation of residents.
   2.  The plan must establish a set of goals with appropriate benchmarks
 and measurable objectives and identify strategies to address areas where
 improvements are needed in financial stability.
   3. The plan shall be publicly available at least fourteen days  before
 the hearing or hearings at which it will be presented and the supervisor
 shall  ensure  that copies thereof shall be prepared and made available,
 upon request, to residents within the town.
   4. Following the hearing or hearings held pursuant to paragraph one of
 this subdivision, but prior to certification of the improvement plan  by
 the  state monitor, the state monitor shall publicly report to the board
 an assessment of all public comments concerning the proposed plan and  a
 description  of  any  changes  made  to  such plan as a result of public
 comments received. The certified plan must be submitted  to  the  board,
 comptroller,  governor,  the  temporary president of the senate, and the
 speaker of the assembly.
   (b) Attend all meetings of the  board  including  executive  sessions.
 The  state  monitor, or designee of the monitor, shall be deemed to be a
 non-voting member of the board and shall be entitled to sit  with  board
 members  at all meetings of the board and participate in all board hear-
 ings and meetings, and the  supervisor  shall  be  required  to  provide
 adequate  notice to the state monitor of all such meetings and hearings.
 The state monitor shall ensure to the extent practicable that the  board
 conducts  all meetings, including executive sessions, in compliance with
 article 7 of the public officers law, and shall be  authorized  to  seek
 written advisory opinions from the committee on open government.
   (c)  Supervise  the  fiscal  and  operational  management of the town,
 including, but not limited to, oversight over  the  development  of  the
 annual budget.
   (d)  Submit  an annual report to the board, comptroller, governor, the
 temporary president of the senate, and the speaker of  the  assembly  on
 the progress of the strategic fiscal improvement plan, actions undertak-
 en by the monitor, any financial information the monitor deems appropri-
 ate,  and  other  town matters of importance.   At the conclusion of the
 monitor's appointment as determined by section seven of  this  act,  the
 state  monitor shall issue a final report that includes long term recom-
 mendations that address the unique needs of the town.
   § 5. Appeal process for monitor decisions. Notwithstanding  any  other
 law, rule or regulation to the contrary, all decisions made by the state
 monitor,  including  decisions to overturn board and supervisor actions,
 shall be final and conclusive unless and until modified or  reversed  in
 an  appeal  to  the comptroller pursuant to this section. When the board
 alleges that a reversal of a board or supervisor decision by  the  state
 monitor  violates  the regulations of the comptroller, or the terms of a
 certified five-year strategic fiscal improvement  plan,  the  board  may
 appeal by petition to the comptroller.

 S. 2308                             4
 
   §  6.  Regulations.  The comptroller shall be authorized to promulgate
 regulations and immediately take such  other  actions  as  necessary  to
 implement the provisions of this act.
   § 7. Appointment period. The appointment of the state monitor shall be
 for  a  period of at least five years from the initial date of the state
 monitor appointment. At the expiration of the initial appointment  peri-
 od,  the  comptroller shall have the authority to extend the appointment
 for an additional period of time in intervals of one to five  years,  as
 determined  by  the  comptroller. The appointment may be extended, for a
 term or terms as the comptroller deems necessary,  consistent  with  the
 repeal date of this act.
   §  8.  This  act shall take effect immediately and shall expire and be
 deemed repealed December 31, 2026.

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Senate Bill S2308

Sponsored By

Archive: Last Bill Status - In Senate Committee Local Government Committee

Apr 25, 2017 - Local Government Committee Vote

Local Government Committee Vote: Apr 25, 2017

2017-S2308 (ACTIVE) - Details

2017-S2308 (ACTIVE) - Summary

2017-S2308 (ACTIVE) - Sponsor Memo

2017-S2308 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2308

Share this bill

Sponsored By

John E. Brooks

Archive: Last Bill Status - In Senate Committee Local Government Committee

2017-S2308 (ACTIVE) - Details

2017-S2308 (ACTIVE) - Summary

2017-S2308 (ACTIVE) - Sponsor Memo

2017-S2308 (ACTIVE) - Bill Text download pdf

Comments