§ 3858. Control period. 1. A control period shall begin as of the\neffective date of this title and may be reimposed during an advisory\nperiod if the authority determines at any time that a fiscal crisis is\nimminent or that any of the following events has occurred or that there\nis a substantial likelihood and imminence of such occurrence:
(a)the\ncity shall have failed to adopt a balanced budget, financial plan or\nbudget modification as required by sections thirty-eight hundred\nfifty-six and thirty-eight hundred fifty-seven of this title, (b) the\ncity shall have failed to pay the principal of or interest on any of its\nbonds or notes when due, (c) the city shall have incurred an operating\ndeficit of one percent or more in the aggregate results of operations of\nany major fund of
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§ 3858. Control period. 1. A control period shall begin as of the\neffective date of this title and may be reimposed during an advisory\nperiod if the authority determines at any time that a fiscal crisis is\nimminent or that any of the following events has occurred or that there\nis a substantial likelihood and imminence of such occurrence: (a) the\ncity shall have failed to adopt a balanced budget, financial plan or\nbudget modification as required by sections thirty-eight hundred\nfifty-six and thirty-eight hundred fifty-seven of this title, (b) the\ncity shall have failed to pay the principal of or interest on any of its\nbonds or notes when due, (c) the city shall have incurred an operating\ndeficit of one percent or more in the aggregate results of operations of\nany major fund of the city or a covered organization during its fiscal\nyear assuming all revenues and expenditures are reported in accordance\nwith generally accepted accounting principles, subject to the provisions\nof this title, (d) the chief fiscal officer's certification at any time,\nat the request of the authority or on the chief fiscal officer's\ninitiative, which certification shall be made from time to time as\npromptly as circumstances warrant and reported to the authority, that on\nthe basis of facts existing at such time such officer could not make the\ncertification described in subdivision one of section thirty-eight\nhundred fifty-one of this title, or (e) the city shall have violated any\nprovision of this title. A control period shall terminate when the\nauthority has determined that the city qualifies for the onset of an\nadvisory period as provided under subdivision one of section\nthirty-eight hundred fifty-one of this title. After onset of an advisory\nperiod, the authority shall annually consider paragraphs (a) through (e)\nof this subdivision and determine whether, in its judgment, any of the\nevents described in such paragraphs have occurred and the authority\nshall publish each such determination. Any certification made by the\nchief fiscal officer hereunder shall be based on such officer's written\ndetermination which shall take into account a report and opinion of an\nindependent expert in the marketing of municipal securities selected by\nthe authority, and the opinion of such expert and any other information\ntaken into account shall be made public when delivered to the authority.\nNotwithstanding any part of the foregoing to the contrary, in no event\nshall any control period continue beyond June thirtieth, two thousand\nthirty-seven.\n 2. In carrying out the purposes of this title during any control\nperiod, the authority:\n (a) shall approve or disapprove the financial plan and the financial\nplan modifications of the city, as provided in sections thirty-eight\nhundred fifty-six and thirty-eight hundred fifty-seven of this title,\nand shall formulate and adopt its own modifications to the financial\nplan, as necessary; such modifications shall become effective upon their\nadoption by the authority;\n (b) may set a maximum level of spending for any proposed budget of any\ncovered organization;\n (c) may impose a wage and/or hiring freeze: (i) During a control\nperiod, upon a finding by the authority that a wage and/or hiring freeze\nis essential to the adoption or maintenance of a city budget or a\nfinancial plan that is in compliance with this title, the authority\nshall be empowered to order that all increases in salary or wages of\nemployees of the city and employees of covered organizations which will\ntake effect after the date of the order pursuant to collective\nbargaining agreements, other analogous contracts or interest arbitration\nawards, now in existence or hereafter entered into, requiring such\nsalary or wage increases as of any date thereafter are suspended. Such\norder may also provide that all increased payments for holiday and\nvacation differentials, shift differentials, salary adjustments\naccording to plan and step-ups or increments for employees of the city\nand employees of covered organizations which will take effect after the\ndate of the order pursuant to collective bargaining agreements, other\nanalogous contracts or interest arbitration awards requiring such\nincreased payments as of any date thereafter are, in the same manner,\nsuspended. For the purposes of computing the pension base of retirement\nallowances, any suspended salary or wage increases and any other\nsuspended payments shall not be considered as part of compensation or\nfinal compensation or of annual salary earned or earnable.\n (ii) Notwithstanding the provisions of subparagraph (i) of this\nparagraph, this subdivision shall not be applicable to employees of the\ncity or employees of a covered organization subject to a collective\nbargaining agreement or an employee of the city or a covered\norganization not subject to a collective bargaining agreement where the\ncollective bargaining representative or such unrepresented employee has\nagreed to a deferment of salary or wage increase, by an instrument in\nwriting which has been certified by the authority as being an acceptable\nand appropriate contribution toward alleviating the fiscal crisis of the\ncity. Any such agreement to a deferral of salary or wage increase may\nprovide that for the purposes of computing the pension base of\nretirement allowances, any deferred salary or wage increase may be\nconsidered as part of compensation or final compensation or of annual\nsalary earned or earnable;\n (iii) Notwithstanding the provisions of subparagraphs (i) and (ii) of\nthis paragraph, no retroactive pay adjustments of any kind shall accrue\nor be deemed to accrue during the period of wage freeze, and no such\nadditional amounts shall be paid at the time a wage freeze is lifted, or\nat any time thereafter.\n (d) shall periodically evaluate the suspension of salary or wage\nincreases or suspensions of other increased payments or benefits, and\nmay, if it finds that the fiscal crisis, in the sole judgment of the\nauthority has abated, terminate such suspensions;\n (e) shall review and approve or disapprove any collective bargaining\nagreement to be entered into by the city or any covered organization, or\npurporting to bind, the city or any covered organization. Prior to\nentering into any collective bargaining agreement, the city or any\ncovered organization shall submit a copy of such collective bargaining\nagreement to the authority, accompanied by an analysis of the projected\ncosts of such agreement and a certification that execution of the\nagreement will be in accordance with the financial plan. Such submission\nshall be in such form and include such additional information as the\nauthority may prescribe. The authority shall promptly review the terms\nof such collective bargaining agreement and the supporting information\nin order to determine compliance with the financial plan, and shall\ndisapprove any collective bargaining agreement which, in its judgment,\nwould be inconsistent with the financial plan. No collective bargaining\nagreement binding, or purporting to bind, the city or any covered\norganization after the effective date of this title shall be valid and\nbinding upon the city or any covered organization unless first approved\nby resolution of the authority.\n (f) shall act jointly with the city in selecting members of any\ninterest arbitration panel. Notwithstanding any other evidence presented\nby the city, the covered organization or any recognized employee\norganization, the arbitration panel must, prior to issuing any final\ndecision, provide the authority with the opportunity to present evidence\nregarding the fiscal condition of the city;\n (g) shall take any action necessary in order to implement the\nfinancial plan should the city or any covered organization have failed\nto comply with any material action necessary to fulfill the plan,\nprovided, however, the authority shall provide seven (7) days notice of\nits determination that the city or any covered organization has not\ncomplied prior to taking any such action.\n (h) may review and approve or disapprove contracts or other\nobligations binding or purporting to bind the city or any covered\norganization;\n (i) shall, with respect to any proposed borrowing by or on behalf of\nthe city or any covered organization on or after July first, two\nthousand three, review the terms of and comment, within thirty days\nafter notification by the city or covered organization of a proposed\nborrowing, on the prudence of each proposed issuance of bonds or notes\nto be issued by the city or covered organization and no such borrowing\nshall be made unless first reviewed, commented upon and approved by the\nauthority. The authority shall comment within thirty days after\nnotification by the city or covered organization of a proposed borrowing\nto the mayor, the comptroller, the council, the director of the budget\nand the state comptroller and indicate approval or disapproval of the\nproposed borrowing. Notwithstanding the foregoing, neither the city nor\nany covered organization shall be prohibited from issuing bonds or notes\nto pay outstanding bonds or notes; and, provided further, the first\nissuance of debt pursuant to chapter six hundred five of the laws of two\nthousand, as amended, shall be excluded from this requirement;\n (j) may review the operation, management, efficiency and productivity\nof the city and any covered organizations as the authority may\ndetermine, and make reports thereon; examine the potential to enhance\nthe revenue of the city or any covered organization; audit compliance\nwith the financial plan in such areas as the authority may determine;\nrecommend to the city and the covered organizations such measures\nrelating to their operations, management, efficiency and productivity as\nthe authority deems appropriate to reduce costs, enhance revenue, and\nimprove services so as to advance the purposes of this title;\n (k) may require the city to undertake certain actions to advance\nserious and in-depth exploration of a merger of services with the\ncounty, including identification and analysis of options; development of\na detailed fiscal and programmatic plan; identification of city, county,\nand state impediments; and fostering of informed public debate;\n (l) may review and approve or disapprove the terms of any proposed\nsettlement of claims against the city or any covered organization in\nexcess of fifty thousand dollars;\n (m) may obtain from the city, the covered organizations, comptroller,\nand the state comptroller, as appropriate, all information required\npursuant to this section, and such other financial statements and\nprojections, budgetary data and information, and management reports and\nmaterials as the authority deems necessary or desirable to accomplish\nthe purposes of this title; and inspect, copy and audit such books and\nrecords of the city and the covered organizations as the authority deems\nnecessary or desirable to accomplish the purposes of this title;\n (n) may perform such audits and reviews of the city and any agency\nthereof and any covered organizations as it deems necessary; and\n (o) may issue, from time to time and to the extent it deems necessary\nor desirable in order to accomplish the purposes of this title, to the\nappropriate official of the city and each covered organization, such\norders necessary to accomplish the purposes of this title, including,\nbut not limited to, timely and satisfactory implementation of an\napproved financial plan. Any order so issued shall be binding upon the\nofficial to whom it was issued and failure to comply with such order\nshall subject the official to the penalties described in subdivision\nthree of this section.\n 3. (a) During any control period (i) no officer or employee of the\ncity or of any of the covered organizations shall make or authorize an\nobligation or other liability in excess of the amount available therefor\nunder the financial plan as then in effect; (ii) no officer or employee\nof the city or of any of the covered organizations shall involve the\ncity or any of the covered organizations in any contract or other\nobligation or liability for the payment of money for any purpose\nrequired to be approved by the authority unless such contract has been\nso approved and unless such contract or obligation or liability is in\ncompliance with the approved financial plan as then in effect.\n (b) No officer or employee of the city or any of the covered\norganizations shall take any action in violation of any valid order of\nthe authority or shall fail or refuse to take any action required by any\nsuch order or shall prepare, present or certify any information\n(including any projections or estimates) or report to the authority or\nany of its agents that is false or misleading, or, upon learning that\nany such information is false or misleading, shall fail promptly to\nadvise the authority or its agents thereof.\n (c) In addition to any penalty or liability under any other law, any\nofficer or employee of the city or any of the covered organizations who\nshall violate paragraph (a) or (b) of this subdivision shall be subject\nto appropriate administrative discipline, including, when circumstances\nwarrant, suspension from duty without pay or removal from office by\norder of either the governor or the mayor; and any officer or employees\nof the city or any of the covered organizations who shall knowingly and\nwillfully violate paragraph (a) or (b) of this subdivision shall, upon\nconviction, be guilty of a misdemeanor.\n (d) In the case of a violation of paragraph (a) or (b) of this\nsubdivision by an officer or employee of the city or of a covered\norganization, the mayor or the chief executive officer of such covered\norganization shall immediately report to the authority all pertinent\nfacts together with a statement of the action taken thereon.\n