§ 3669. Control period. 1. The authority shall impose a control period
upon its determination at any time that any of the following events has
occurred or that there is a substantial likelihood and imminence of such
occurrence: (a) the county shall have failed to pay the principal of or
interest on any of its bonds or notes when due or payable, (b) the
county shall have incurred a major operating funds deficit of one
percent or more in the aggregate results of operations of such funds
during its fiscal year assuming all revenues and expenditures are
reported in accordance with generally accepted accounting principles,
subject to the provisions of this title, (c) the county shall have
otherwise violated any provision of this title and such violation
substantially impairs the marketability of the county's bonds or notes,
(d) the chief fiscal officer's certification at any time, at the request
of the authority or on the chief fiscal officer's initiative, which
certification shall be made from time to time as promptly as
circumstances warrant and reported to the authority, that on the basis
of facts existing at such time such officer could not make the
certification described by paragraph (b) of this subdivision in the
definition of interim finance period in section thirty-six hundred
fifty-one of this title, or (e) the authority makes the finding required
under paragraph (g) of subdivision two of section thirty-six hundred
sixty-seven of this title. The authority shall terminate any such
control period when it determines that none of the conditions which
would permit the authority to impose a control period exist. After
termination of a control period the authority shall annually consider
paragraphs (a) through (e) of this subdivision and determine whether, in
its judgment, any of the events described in such paragraphs have
occurred and the authority shall publish each such determination. Any
certification made by the chief fiscal officer hereunder shall be based
on such officers' written determination which shall take into account a
report and opinion of an independent expert in the marketing of
municipal securities selected by the authority, and the opinion of such
expert and any other information taken into account shall be made public
when delivered to the authority. Notwithstanding any part of the
foregoing to the contrary, in no event shall any control period continue
beyond the later of (i) January first, two thousand thirty, or (ii) the
date when all bonds of the authority are refunded, discharged or
otherwise defeased.

2. In carrying out the purposes of this title during any control
period:

(a) The authority shall (i) consult with the county and the covered
organizations in the preparation of the financial plan, and certify to
the county the revenue estimates approved therein, (ii) prescribe the
form of the financial plan and the supporting information required in
connection therewith, (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, and (iv) in the
event the authority has made the finding required under section
thirty-six hundred sixty-seven of this title, formulate and adopt its
modifications to the financial plan, such modifications to become
effective on their adoption by the authority.

(b) The authority shall, from time to time and to the extent it deems
necessary or desirable in order to accomplish the purposes of this
title, (i) review the operations, management, efficiency and
productivity of such county operations and of such covered organizations
or portions thereof as the authority may determine, and make reports
thereon; (ii) audit compliance with the financial plan in such areas as
the authority may determine; (iii) recommend to the county 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
title; and (iv) obtain information on the financial condition and needs
of the county and the covered organizations. Nothing herein shall
diminish the powers of the state comptroller otherwise provided by law
and the authority may request the assistance of the state comptroller in
the performance of the above functions.

(c) The authority shall (i) receive from the county and the covered
organizations and from the state comptroller, and review, such financial
statements and projections, budgetary data and information, and
management reports and materials as the authority deems necessary or
desirable to accomplish the purposes of this title, and (ii) inspect,
copy and audit such books and records of the county and the covered
organizations as the authority deems necessary or desirable to
accomplish the purposes of this title.

(d) All contracts entered into by the county or any covered
organization during any control period must be consistent with the
provisions of this title and must comply with the requirements of the
financial plan as approved by the authority. With respect to all
contracts or other obligations to be entered into by the county or any
covered organization during any control period requiring the payment of
funds or the incurring of costs by the county or any covered
organizations:

(i) Within twenty days from the commencement of a control period, the
county executive shall present to the authority proposed guidelines
respecting the categories and types of contracts and other obligations
required to be reviewed by the authority pursuant to this subdivision.
Any such guidelines may provide a different standard for review with
respect to contracts of any covered organization as the authority shall
determine. Within thirty days from the commencement of a control period,
the authority shall approve or modify and approve such proposed
guidelines or promulgate its own in the event that such proposed
guidelines are not submitted to it within the twenty days as provided
for herein. Such guidelines may thereafter be modified by the authority
from time to time on not less than thirty days' notice to the county
executive and the county executive may from time to time propose
modifications to the authority. Unless expressly disapproved or modified
by the authority within thirty days (or such additional time, not
exceeding thirty days, as the authority shall have notified the county
or covered organization that it requires to complete its review and
analysis) from the date of submission by the county executive, any such
proposed guidelines or modifications shall be deemed approved by the
authority;

(ii) Prior to entering into any contract or other obligation subject
to review of the authority under its guidelines, the county or any
covered organization shall submit a copy of such contract or other
obligation to the authority accompanied by an analysis of the projected
costs of such contract or other obligation and certification that
performance thereof will be in accordance with the financial plan, all
in such form and with such additional information as the authority may
prescribe. The authority 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) The authority shall, by order, disapprove any contract or other
obligation reviewed by it only after adoption of a resolution
determining that, in its judgment, the performance of such contract or
other obligation would be inconsistent with the financial plan, and upon
such order the county or covered organization shall not enter into such
contract or other obligation; and

(iv) If the authority approves the terms of a reviewed contract or
other obligation, the county or covered organization may enter into such
contract or other obligation upon the terms submitted to the authority.
Failure of the authority to notify the county or covered organization
within thirty days (or such additional time, not exceeding thirty days,
as the authority shall have notified the county 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 authority
approval thereof.

(e) The authority shall review the terms of each proposed long-term
and short-term borrowing by the county and any covered organization to
be effected during any control period, and no such borrowing shall be
made during any control period unless it is approved by the authority.
Neither the county nor any covered organization shall be prohibited from
issuing bonds or notes to pay outstanding bonds or notes.

(f) The authority shall issue, to the appropriate official of the
county and each covered organization, such orders as it deems necessary
to accomplish the purposes of this title, 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 subdivision four of this section.

(g) The authority is authorized to and shall withhold any transitional
state aid and not pay such moneys to the county during any control
period.

3. Authorization for wage freeze. (a) During a control period, upon a
finding by the authority that a wage freeze is essential to the adoption
or maintenance of a county budget or a financial plan that is in
compliance with this title, the authority, after enactment of a
resolution so finding, may declare a fiscal crisis. Upon making such a
declaration, the authority shall be empowered to order that all
increases in salary or wages of employees of the county and employees of
covered organizations which will take effect after the date of the order
pursuant to collective bargaining agreements, other analogous contracts
or interest arbitration awards, now in existence or hereafter entered
into, requiring such salary increases as of any date thereafter are
suspended. Such order may also provide that all increased payments for
holiday and vacation differentials, and shift differentials for
employees of the county and employees of covered organizations which
will take effect after the date of the order pursuant to collective
bargaining agreements, other analogous contracts or interest arbitration
awards requiring such increased payments as of any date thereafter are,
in the same manner, suspended. Such order may also provide that all
increased payments for salary adjustments according to plan and step-ups
or increments be suspended; provided, however, when (i) the county
executive provides a four year financial plan approved by the county
legislature pursuant to paragraph (a) of subdivision two of section
thirty-six hundred sixty-seven of this title and the authority
determines, pursuant to paragraph (b) of such subdivision, that such
financial plan is complete and complies with the standards set forth in
such subdivision, and (ii) the authority makes a certification to the
county setting forth revenue estimates agreed to by the authority in
accordance with such determination, the salary adjustments according to
plan and step-ups or increments, not including cost of living increases,
shall not be suspended for each year in which the four year financial
plan has been certified. This inability to suspend the salary
adjustments according to plan and step-ups or increments shall be
applicable to county employees and employees of covered organizations,
whether or not they are covered by a collectively negotiated agreement,
if an individual employee or members of an employee's bargaining unit
previously participated in a wage freeze implemented by the authority
under this section and such wage freeze was subsequently lifted by the
authority by the issuance of a resolution, pursuant to paragraph (b) or
(c) of this subdivision, certifying that the suspension of their wage
increases or an agreement by the collective bargaining representative or
by such unrepresented employee was an acceptable and appropriate
contribution toward alleviating the fiscal crisis of the county.
Irrespective of the duration of any approved or accepted four-year
financial plan, for employees who are members of a bargaining unit, this
inability to suspend the salary adjustment according to plan and
step-ups or increments shall take effect October first, two thousand
sixteen and shall be in effect for employees for the duration of the
next collective bargaining agreement succeeding either (i) the
collective bargaining agreement in effect on November sixth, two
thousand eighteen or (ii) the most recently expired collective
bargaining agreement prior to November sixth, two thousand eighteen;
whichever is later. If the succeeding collective bargaining agreement's
duration is modified, extended, or renewed, this modification, extension
or renewal does not modify, extend or renew the term of the inability to
suspend salary adjustments according to plan and step-ups or increments.
For employees who are not members of a bargaining unit, this inability
to suspend the salary adjustment according to plan and step-ups or
increments shall be effective October first, two thousand sixteen
through December first, two thousand twenty-one. For the purposes of
computing the pension base of retirement allowances, any suspended
salary or wage increases and any suspended other payments shall not be
considered as part of compensation or final compensation or of annual
salary earned or earnable. The suspensions authorized hereunder shall
continue until one year after the date of the order and, to the extent
of any determination of the authority that a continuation of such
suspensions, to a date specified by the authority, is necessary in order
to achieve the objectives of the financial plan, such suspensions shall
be continued to the date specified by the authority, which date shall in
no event be later than the end of the interim finance period, provided
that such suspensions shall terminate with respect to employees who have
agreed to a deferral of salary or wage increase upon the certification
of the agreement by the authority pursuant to paragraph (b) of this
subdivision.

(b) This subdivision shall not be applicable to employees of the
county or employees of a covered organization covered by a collective
bargaining agreement or an employee of the county or a covered
organization not covered by a collective bargaining agreement where the
collective bargaining representative or such unrepresented employee has
agreed to a deferment of salary or wage increase, by an instrument in
writing which has been certified by the authority as being an acceptable
and appropriate contribution toward alleviating the fiscal crisis of the
county. Any such agreement to a deferment of salary or wage increase may
provide that for the purposes of computing the pension base of
retirement allowances, any deferred salary or wage increase may be
considered as part of compensation or final compensation or of annual
salary earned or earnable.

(c) The authority may, if it finds that the fiscal crisis has been
sufficiently alleviated or for any other appropriate reason, direct that
the suspensions of salary or wage increases or suspensions of other
increased payments or benefits shall, in whole or in part, be
terminated.

4. Prohibition; penalties. (a) During any control period (i) no
officer or employee of the county or of any of the covered organizations
shall make or authorize an obligation or other liability in excess of
the amount available therefor under the financial plan as then in
effect; (ii) no officer or employee of the county or of any of the
covered organizations shall involve the county or any of the covered
organizations in any contract or other obligation or liability for the
payment of money for any purpose required to be approved by the
authority unless such contract has been so approved and unless such
contract or obligation or liability is in compliance with the financial
plan as then in effect.

(b) No officer or employee of the county or any of the covered
organizations shall take any action in violation of any valid order of
the authority or shall fail or refuse to take any action required by any
such order or shall prepare, present or certify any information
(including any projections or estimates) or report to the authority or
any of its agents that is false or misleading, or, upon learning that
any such information is false or misleading, shall fail promptly to
advise the authority or its agents thereof.

(c) In addition to any penalty or liability under any other law, any
officer or employees of the county or any of the covered organizations
who shall violate paragraph (a) or (b) of this subdivision shall be
subject to appropriate administrative discipline, including, when
circumstances warrant, suspension from duty without pay or removal from
office by order of either the governor or the county executive; and any
officer or employees of the county or any of the covered organizations
who shall knowingly and willfully violate paragraph (a) or (b) of this
subdivision shall, upon conviction, be guilty of a misdemeanor.

(d) In the case of a violation of paragraph (a) or (b) of this
subdivision by an officer or employee of the county or any of the
covered organizations, the county executive or the chief executive
officer of such covered organization shall immediately report to the
authority all pertinent facts together with a statement of the action
taken thereon.