§ 3959. Control period. 1. The authority shall impose a control period
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 adopt a balanced budget within time frames
prescribed in the county charter, financial plan or budget modification
as required by sections thirty-nine hundred fifty-six and thirty-nine
hundred fifty-seven of this title; (b) the county shall have failed to
pay the principal of or interest on any of its bonds or notes when due;
(c) the county shall have incurred a major operating funds deficit of
one percent or more in the aggregate results of operations of such funds
of the county 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; (d) the
comptroller's certification at any time, at the request of the authority
or on the comptroller'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 the
comptroller could not make the certification described in paragraph (b)
of subdivision one of section thirty-nine hundred fifty-one of this
title; or (e) the county shall have violated any provision 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
comptroller hereunder shall be based on the comptroller's 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) December
thirty-first, two thousand thirty-nine, 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, the authority:

(a) shall approve or disapprove the financial plan and the financial
plan modifications of the county, as provided in section thirty-nine
hundred fifty-seven of this title, and shall formulate and adopt its own
modifications to the financial plan, as necessary; such modifications
shall become effective upon their adoption by the authority;

(b) may set a maximum level of spending for any proposed budget of any
covered organization;

(c) may impose a wage and/or hiring freeze: (i) During a control
period, upon a finding by the authority that a wage and/or hiring 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
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 or wage increases as of any date thereafter are suspended. Such
order may also provide that all increased payments for holiday and
vacation differentials, shift differentials, salary adjustments
according to plan and step-ups or increments 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. For the purposes of computing the pension base of retirement
allowances, any suspended salary or wage increases and any other
suspended payments shall not be considered as part of compensation or
final compensation or of annual salary earned or earnable;

(ii) Notwithstanding the provisions of subparagraph (i) of this
paragraph, this subdivision shall not be applicable to employees of the
county or employees of a covered organization subject to a collective
bargaining agreement or an employee of the county or a covered
organization not subject to 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 deferral 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;

(iii) Notwithstanding the provisions of subparagraphs (i) and (ii) of
this paragraph, no retroactive pay adjustments of any kind shall accrue
or be deemed to accrue during the period of wage freeze, and no such
additional amounts shall be paid at the time a wage freeze is lifted, or
at any time thereafter;

(d) shall periodically evaluate the suspension of salary or wage
increases or suspensions of other increased payments or benefits, and
may, if it finds that the fiscal crisis, in the sole judgment of the
authority has abated, terminate such suspensions;

(e) shall review and approve or disapprove any collective bargaining
agreement to be entered into by the county or any covered organization,
or purporting to bind, the county or any covered organization. Prior to
entering into any collective bargaining agreement, the county or any
covered organization shall submit a copy of such collective bargaining
agreement to the authority, accompanied by an analysis of the projected
costs of such agreement and a certification that execution of the
agreement will be in accordance with the financial plan. Such submission
shall be in such form and include such additional information as the
authority may prescribe. The authority shall promptly review the terms
of such collective bargaining agreement and the supporting information
in order to determine compliance with the financial plan, and shall
disapprove any collective bargaining agreement which, in its judgment,
would be inconsistent with the financial plan. No collective bargaining
agreement binding, or purporting to bind, the county or any covered
organization after the effective date of this title shall be valid and
binding upon the county or any covered organization unless first
approved by resolution of the authority;

(f) shall act jointly with the county in selecting members of any
interest arbitration panel. Notwithstanding any other evidence presented
by the county, the covered organization or any recognized employee
organization, the arbitration panel must, prior to issuing any final
decision, provide the authority with the opportunity to present evidence
regarding the fiscal condition of the county;

(g) shall take any action necessary in order to implement the
financial plan should the county or any covered organization have failed
to comply with any material action necessary to fulfill the plan,
provided, however, the authority shall provide seven days notice of its
determination that the county or any covered organization has not
complied prior to taking any such action;

(h) may review and approve or disapprove contracts or other
obligations binding or purporting to bind the county or any covered
organization;

(i) shall, with respect to any proposed borrowing by or on behalf of
the county or any covered organization on or after July first, two
thousand five, review the terms of and comment, within thirty days after
notification by the county or covered organization of a proposed
borrowing, on the prudence of each proposed issuance of bonds or notes
to be issued by the county or covered organization and no such borrowing
shall be made unless first reviewed, commented upon and approved by the
authority. The authority shall comment within thirty days after
notification by the county or covered organization of a proposed
borrowing to the county executive, the comptroller, the legislature, the
director of the budget, the chair of the state senate finance committee,
the chair of the state assembly ways and means committee and the state
comptroller and indicate approval or disapproval of the proposed
borrowing. Notwithstanding the foregoing, neither the county nor any
covered organization shall be prohibited from issuing bonds or notes to
pay outstanding bonds or notes; and, provided further, revenue
anticipation notes issued in July two thousand five, shall be excluded
from this requirement;

(j) may review the operation, management, efficiency and productivity
of the county and any covered organizations as the authority may
determine, and make reports thereon; examine the potential to enhance
the revenue of the county or any covered organization; audit compliance
with the financial plan in such areas as the authority may determine;
recommend to the county and the covered organizations such measures
relating to their operations, management, efficiency and productivity as
the authority deems appropriate to reduce costs, enhance revenue, and
improve services so as to advance the purposes of this title;

(k) may review and approve or disapprove the terms of any proposed
settlement of claims against the county or any covered organization in
excess of fifty thousand dollars;

(l) may obtain from the county, the covered organizations, the
comptroller, and the state comptroller, as appropriate, all information
required pursuant to this section, and such other 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 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;

(m) may perform such audits and reviews of the county and any agency
thereof and any covered organizations as it deems necessary; and

(n) may issue, from time to time and to the extent it deems necessary
or desirable in order to accomplish the purposes of this title, to the
appropriate official of the county and each covered organization, such
orders 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
three of this section.

3. (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 approved 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 employee 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 of a covered
organization, 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.