* § 7. Functions of the board. 1. In carrying out the purposes of this
act, the board shall perform the following functions:

a. In accordance with the provisions of section eight of this act, the
board shall (i) consult with the city and the covered organizations in
the preparation of the financial plan, and certify to the city the
revenue estimates approved therein, (ii) prescribe the form of the
financial plan and the supporting information required in connection
therewith, and (iii) exercise the rights of approval, disapproval and
modification with respect to the financial plan, including but not
limited to the revenue estimates contained therein.

b. The board, to the extent it deems it necessary or appropriate in
order to accomplish the purposes of this act, shall establish and adopt
procedures with respect to the (i) proper maintenance of the board fund,
(ii) the deposit and investment of revenues in such fund and (iii)
disbursement of monies from such fund.

c. The board shall, from time to time and to the extent it deems
necessary or appropriate in order to accomplish the purposes of this
act, (i) review the operations, management, efficiency and productivity
of such city operations and of such covered organizations or portions
thereof as the board may determine, and make reports thereon; (ii) audit
compliance with the financial plan in such areas as the board may
determine; (iii) recommend to the city and the covered organizations
such measures relating to their operations, management, efficiency and
productivity as it deems appropriate to reduce costs and improve
services so as to advance the purposes of this act; and (iv) obtain
information of the financial condition and needs of the city and the
covered organizations. Nothing herein shall diminish the powers of the
comptroller otherwise provided by law and the board may request the
assistance of the comptroller in performing the above functions.

d. The board (i) shall receive from the city and review the reports to
be prepared by or on behalf of the city pursuant to section seven-a;
(ii) shall receive from the city and the covered organizations and from
the deputy comptroller, and shall review such financial statements and
projections, budgetary data and information, and management reports and
materials as the board deems necessary or desirable to accomplish the
purposes of this act; and (iii) shall inspect, copy and audit such books
and records of the city and the covered organizations as the board deems
necessary or desirable to accomplish the purposes of this act.

e. All contracts entered into by the city or any covered organization
must be consistent with the provisions of this act and must comply with
the requirements of the financial plan as approved by the board. With
respect to all contracts or other obligations to be entered into by the
city or any covered organization after October fifteenth, nineteen
hundred seventy-five, requiring the payment of funds or the incurring of
costs by the city or any covered organization:

(i) Within twenty days from the effective date of this act the mayor
shall present to the board proposed regulations respecting the
categories and types of contracts and other obligations required to be
reviewed by the board pursuant to this subdivision e. Within thirty days
from the effective date of this act, the board shall approve or modify
and approve such proposed regulations or promulgate its own in the event
that such proposed regulations are not submitted to it within the twenty
days as provided for herein. Such regulations may thereafter be modified
by the board from time to time on not less than thirty days notice to
the mayor and the mayor may from time to time propose modifications to
the board. Unless expressly disapproved or modified by the board within
thirty days from the date of submission by the mayor, any such proposed
regulations or modifications shall be deemed approved by the board;

(ii) Prior to entering into any contract or other obligations subject
to review of the board under its regulations, the city or any covered
organization shall submit a copy of such contract or other obligation to
the board accompanied by an analysis of the projected costs of such
contract or other obligation and a certification that performance
thereof will be in accordance with the financial plan, all in such form
and with such additional information as the board may prescribe. The
board shall promptly review the terms of such contract or other
obligation and the supporting information in order to determine
compliance with the financial plan;

(iii) During a control period the board shall, by order, disapprove
any contract or other obligation reviewed by it only upon a
determination that, in its judgment, the performance of such contract or
other obligation would be inconsistent with the financial plan and the
city or covered organization shall not enter into such contract or other
obligation;

(iv) During a control period if the board approves the terms of a
reviewed contract or other obligation, the city or covered organization
may enter into such contract or other obligation upon the terms
submitted to the board. Failure of the board to notify the city or
covered organization within thirty days (or such additional time not
exceeding thirty days as the board shall have notified the city or
covered organization, that it requires to complete its review and
analysis) after submission to it of a contract or other obligation that
such contract or other obligation has been disapproved shall be deemed
to constitute board approval thereof.

f. Upon submission thereof by the city, the board shall review the
terms of each proposed long-term and short-term borrowing by the city
and any covered organization to be affected during a control period but
after October fifteenth, nineteen hundred seventy-five, and no such
borrowing shall be made unless approved by the board. Each such proposed
borrowing by a covered organization shall be submitted to the city by
the covered organization before it may be considered by the board. Not
more than thirty days after any such submission by a covered
organization the city shall transmit any such proposed terms of
borrowing to the board together with the certification of the city as to
whether such proposed terms of borrowing are in accordance with the
financial plan and are consistent with the objectives and purposes of
this act. Any such submission to the city shall be accompanied by a
certification of the covered organization that the terms thereof are in
accordance with the financial plan and are consistent with the
objectives or purposes of this act. The transmittal by the city to the
board shall include a recommendation by the city for the approval or
disapproval of such proposed terms of borrowing pursuant to the terms of
this paragraph. In the event the city does not make such transmittal
within such thirty day period, such covered organization may submit such
proposed borrowing directly to the board. The board shall disapprove any
borrowing if it determines that such borrowing is inconsistent with the
financial plan or the objectives or purposes of this act. The board
shall consult and coordinate with the municipal assistance corporation
for the city of New York with respect to borrowings of the city and any
covered organization and shall receive reports from the muncipal
assistance corporation for the city of New York on its review of
borrowings by the city. No covered organizations shall be prohibited
from issuing bonds or notes to pay outstanding bonds or notes.

g. The board and the comptroller shall receive quarterly reports from
the city comptroller setting forth the debt service requirements on all
bonds and notes of the city and the covered organizations for the
following quarter, which reports shall be in such form and contain such
information as the board shall determine. Such reports shall be issued
no later than sixty days prior to the start of the quarter to which they
pertain and shall be updated immediately upon each issuance of bonds or
notes after the date of such report to reflect any change in debt
service requirements as a result of such issuance. The board also shall
receive from the city monthly and quarterly financial reports, which
reports shall be in such form and contain such information as the board
shall determine and shall be made available by the city to the public.
In order to avoid duplicative reports and reporting requirements, to the
extent that the city is required to submit monthly or quarterly
financial reports to the department of the treasury pursuant to any
agreement or arrangement made in connection with federal guarantees of
notes or bonds issued by the city or a state financing agency, copies of
such reports shall be submitted to the board in satisfaction of the
monthly and quarterly reporting requirements set forth above, together
with such additional information as the board may require. Each monthly
and quarterly report herein required to be submitted to the board must
indicate any variance between actual and budgeted revenues, expenses or
cash for the period covered by such report.

h. The board shall issue, to the appropriate officials of the city and
the covered organizations, such orders as it deems necessary to
accomplish the purposes of this act, including but not limited to timely
and satisfactory implementation of an approved financial plan. Any order
so issued shall be binding upon the official to whom it was issued and
failure to comply with such order shall subject the official to the
penalties described in section eleven of this act.

i. The board shall coordinate with the municipal assistance
corporation for the city of New York and the deputy comptroller with
respect to the performance of its review and monitoring of the revenues
and expenditures of the city and the covered organizations.

2. In the event of any default by the city on its outstanding bonds or
notes, and so long as such default has not been cured, the board may,
any provisions of this act notwithstanding, take any action that it is
authorized to take pursuant to title six-A of article two of the local
finance law, and may direct the city to take any action that the city is
authorized to take under such law.

* 3. (a) Notwithstanding any provision of the New York City Collective
Bargaining Law, codified as chapter fifty-four of the New York city
administrative code, or any general or special law to the contrary, any
report or recommendation of an impasse panel constituted pursuant to
such chapter which provides for an increase in wages or fringe benefits
of any employee of the city or covered organization, in addition to
considering any standard or factor required to be considered by
applicable law, including the standards enumerated in section
1173-7.0(c)(3)(b) of such chapter, shall also take into consideration
and accord substantial weight to the financial ability of the city and
or covered organization to pay the cost of such increase in wages or
fringe benefits.

(b) The board of collective bargaining constituted pursuant to such
chapter, when reviewing such report or recommendation before proceeding
to other issues, shall make a threshold determination as to whether such
report or recommendation for an increase in wages or fringe benefits is
within the city's and or covered organization's financial ability to
pay. If the threshold determination is in the negative, the matter shall
be remitted to the impasse panel for further consideration. If the
threshold determination is in the affirmative, the further review of the
report or recommendation with respect to other issues, if any, shall
proceed as provided by law. Unless the parties stipulate otherwise, the
threshold determination shall be made within thirty days after
submission of the report or recommendation to the board of collective
bargaining.

(c) Any determination pursuant to article eight of the labor law or
any agreement or stipulation entered into in lieu thereof which provides
for an increase in wages or fringe benefits of any employee of the city
or covered organization shall, in addition to considering any standard
or factor required to be considered by applicable law, also take into
consideration and accord substantial weight to the financial ability of
the city and or covered organization to pay the cost of such increase.

(d) Any report or recommendation of a fact finding or similar type
panel or any interest arbitration award which provides for an increase
in wages or fringe benefits of any employee of the city or covered
organization not subject to the provisions of the New York City
Collective Bargaining Law, codified as chapter fifty-four of the New
York city administrative code, shall, in addition to considering any
standard or factor required to be considered by applicable law, also
take into consideration and accord substantial weight to the financial
ability of the city and or covered organization to pay the cost of such
increase.

(e) Any party to a proceeding before the board of collective
bargaining as described in paragraph (b) or other body as described in
paragraphs (c) or (d) hereof may commence a special proceeding in the
appellate division, first department, supreme court, state of New York,
to review the threshold determination as to the city and or covered
organization's financial ability to pay. Such proceeding shall be
commenced not later than thirty days after the final determination has
been made by the board of collective bargaining in the case of paragraph
(b) or other body in the case of paragraphs (c) or (d). Such proceeding
shall have preference over all other causes in such appellate division,
other than causes relating to the election law.

(f) The court shall make a de novo review of the record solely for the
purpose of determining whether an award of an increase in wages or
fringe benefits was within the city's and or covered organization's
financial ability to pay. The court's findings as to such issue shall be
based upon a preponderance of all the evidence set forth in the record.
Unless the parties stipulate otherwise, arguments or submission shall be
had within fifteen days after commencement of the special proceeding and
the court shall render its decision within fifteen days thereafter. All
questions, other than the question relating to the threshold
determination, shall be reviewed by the appellate division in the same
proceeding in the manner provided by articles seventy-five or
seventy-eight of the civil practice law and rules as may be appropriate,
notwithstanding that the issue would otherwise have been cognizable in
the first instance before a special or trial term of the supreme court.
If an appeal shall otherwise lie from such determination of the
appellate division to the court of appeals, notice of such appeal shall
be filed within thirty days after the entry of the final order or
judgment of the appellate division if such appeal is of right or within
ten days after entry of an order granting leave to appeal and such
appeal shall have preference over all other appeals other than appeals
relating to the election law.

(g) At any stage of any proceeding under paragraphs (a), (b), (c), (d)
and (e) hereof or any appeal from an order or judgment therefrom, the
board may intervene as a party on the issue of the financial ability of
the city and or covered organization to pay the cost of an increase in
wages or fringe benefits.

(h) For the purposes of this subdivision, financial ability to pay
shall mean the financial ability of the city and or covered organization
to pay the cost of any increase in wages or fringe benefits without
requiring an increase in the level of city taxes existing at the time of
the commencement of a proceeding under paragraph (a), (c) or (d) hereof.

(i) The provisions of this subdivision shall terminate on June
thirtieth, nineteen hundred eighty-six.

* NB Expires June 30, 1986

4. During a control period, except upon approval by the board in
accordance with the provisions of paragraph e or f of subdivision one of
this section, as the board shall determine, neither the city nor a
covered organization shall enter any agreement or other arrangement,
whether or not it creates a debt of the city or a covered organization,
pursuant to which the revenues or credit of the city may be directly or
indirectly pledged, encumbered, committed or promised, contingently or
otherwise, for the payment of obligations of a public benefit
corporation. Nothing in this subdivision shall limit the right of the
city to comply with the provisions of any existing agreement or other
arrangement in respect of the obligations of a public benefit
corporation.

5. The board may employ such consultants as it may deem necessary to
assist it in performing its functions required under this act.

6. The board shall have the authority to make and execute agreements
and all other instruments which the board deems necessary for the
exercise of its powers and functions including, in connection with any
agreement by the federal government or any agency or instrumentality
thereof to guarantee the payment of the principal of or interest on
bonds or notes issued by the city or by a state financing agency, to
enter into one or more agreements containing terms and conditions
required by the secretary of the treasury pursuant to the New York City
Loan Guarantee Act of l978, Public Law 95-339 with the federal
government or any agency or instrumentality thereof with respect to such
guarantee or any matters related thereto and to comply with such terms
and conditions.

7. The board may appoint qualified individuals to participate as
members of such audit, productivity or similar committees or councils as
the city may from time to time establish in consultation with the board.
Such individuals, however, shall not be deemed to be officers, employees
or agents of the board. The board shall review and report on, not less
than annually, the development and implementation of methods for
enhancing the productivity of the city's labor force proposed by any
such committee or council.

* Terminates July 1, 2008 or ... see § 13