§ 7 — Functions of the board

* § 7. Functions of the board. 1. In carrying out the purposes of this\nact, the board shall perform the following functions:\n a. In accordance with the provisions of section eight of this act, the\nboard shall (i) consult with the city and the covered organizations in\nthe preparation of the financial plan, and certify to the city the\nrevenue estimates approved therein, (ii) prescribe the form of the\nfinancial plan and the supporting information required in connection\ntherewith, and (iii) exercise the rights of approval, disapproval and\nmodification with respect to the financial plan, including but not\nlimited to the revenue estimates contained therein.\n b. The board, to the extent it deems it necessary or appropriate in\norder to accomplish the purposes of this act, shall establish and adopt\nprocedures with respect to the (i) proper maintenance of the board fund,\n(ii) the deposit and investment of revenues in such fund and (iii)\ndisbursement of monies from such fund.\n c. The board shall, from time to time and to the extent it deems\nnecessary or appropriate in order to accomplish the purposes of this\nact, (i) review the operations, management, efficiency and productivity\nof such city operations and of such covered organizations or portions\nthereof as the board may determine, and make reports thereon; (ii) audit\ncompliance with the financial plan in such areas as the board may\ndetermine; (iii) recommend to the city and the covered organizations\nsuch measures relating to their operations, management, efficiency and\nproductivity as it deems appropriate to reduce costs and improve\nservices so as to advance the purposes of this act; and (iv) obtain\ninformation of the financial condition and needs of the city and the\ncovered organizations. Nothing herein shall diminish the powers of the\ncomptroller otherwise provided by law and the board may request the\nassistance of the comptroller in performing the above functions.\n d. The board (i) shall receive from the city and review the reports to\nbe prepared by or on behalf of the city pursuant to section seven-a;\n(ii) shall receive from the city and the covered organizations and from\nthe deputy comptroller, and shall review such financial statements and\nprojections, budgetary data and information, and management reports and\nmaterials as the board deems necessary or desirable to accomplish the\npurposes of this act; and (iii) shall inspect, copy and audit such books\nand records of the city and the covered organizations as the board deems\nnecessary or desirable to accomplish the purposes of this act.\n e. All contracts entered into by the city or any covered organization\nmust be consistent with the provisions of this act and must comply with\nthe requirements of the financial plan as approved by the board. With\nrespect to all contracts or other obligations to be entered into by the\ncity or any covered organization after October fifteenth, nineteen\nhundred seventy-five, requiring the payment of funds or the incurring of\ncosts by the city or any covered organization:\n (i) Within twenty days from the effective date of this act the mayor\nshall present to the board proposed regulations respecting the\ncategories and types of contracts and other obligations required to be\nreviewed by the board pursuant to this subdivision e. Within thirty days\nfrom the effective date of this act, the board shall approve or modify\nand approve such proposed regulations or promulgate its own in the event\nthat such proposed regulations are not submitted to it within the twenty\ndays as provided for herein. Such regulations may thereafter be modified\nby the board from time to time on not less than thirty days notice to\nthe mayor and the mayor may from time to time propose modifications to\nthe board. Unless expressly disapproved or modified by the board within\nthirty days from the date of submission by the mayor, any such proposed\nregulations or modifications shall be deemed approved by the board;\n (ii) Prior to entering into any contract or other obligations subject\nto review of the board under its regulations, the city or any covered\norganization shall submit a copy of such contract or other obligation to\nthe board accompanied by an analysis of the projected costs of such\ncontract or other obligation and a certification that performance\nthereof will be in accordance with the financial plan, all in such form\nand with such additional information as the board may prescribe. The\nboard shall promptly review the terms of such contract or other\nobligation and the supporting information in order to determine\ncompliance with the financial plan;\n (iii) During a control period the board shall, by order, disapprove\nany contract or other obligation reviewed by it only upon a\ndetermination that, in its judgment, the performance of such contract or\nother obligation would be inconsistent with the financial plan and the\ncity or covered organization shall not enter into such contract or other\nobligation;\n (iv) During a control period if the board approves the terms of a\nreviewed contract or other obligation, the city or covered organization\nmay enter into such contract or other obligation upon the terms\nsubmitted to the board. Failure of the board to notify the city or\ncovered organization within thirty days (or such additional time not\nexceeding thirty days as the board shall have notified the city or\ncovered organization, that it requires to complete its review and\nanalysis) after submission to it of a contract or other obligation that\nsuch contract or other obligation has been disapproved shall be deemed\nto constitute board approval thereof.\n f. Upon submission thereof by the city, the board shall review the\nterms of each proposed long-term and short-term borrowing by the city\nand any covered organization to be affected during a control period but\nafter October fifteenth, nineteen hundred seventy-five, and no such\nborrowing shall be made unless approved by the board. Each such proposed\nborrowing by a covered organization shall be submitted to the city by\nthe covered organization before it may be considered by the board. Not\nmore than thirty days after any such submission by a covered\norganization the city shall transmit any such proposed terms of\nborrowing to the board together with the certification of the city as to\nwhether such proposed terms of borrowing are in accordance with the\nfinancial plan and are consistent with the objectives and purposes of\nthis act. Any such submission to the city shall be accompanied by a\ncertification of the covered organization that the terms thereof are in\naccordance with the financial plan and are consistent with the\nobjectives or purposes of this act. The transmittal by the city to the\nboard shall include a recommendation by the city for the approval or\ndisapproval of such proposed terms of borrowing pursuant to the terms of\nthis paragraph. In the event the city does not make such transmittal\nwithin such thirty day period, such covered organization may submit such\nproposed borrowing directly to the board. The board shall disapprove any\nborrowing if it determines that such borrowing is inconsistent with the\nfinancial plan or the objectives or purposes of this act. The board\nshall consult and coordinate with the municipal assistance corporation\nfor the city of New York with respect to borrowings of the city and any\ncovered organization and shall receive reports from the muncipal\nassistance corporation for the city of New York on its review of\nborrowings by the city. No covered organizations shall be prohibited\nfrom issuing bonds or notes to pay outstanding bonds or notes.\n g. The board and the comptroller shall receive quarterly reports from\nthe city comptroller setting forth the debt service requirements on all\nbonds and notes of the city and the covered organizations for the\nfollowing quarter, which reports shall be in such form and contain such\ninformation as the board shall determine. Such reports shall be issued\nno later than sixty days prior to the start of the quarter to which they\npertain and shall be updated immediately upon each issuance of bonds or\nnotes after the date of such report to reflect any change in debt\nservice requirements as a result of such issuance. The board also shall\nreceive from the city monthly and quarterly financial reports, which\nreports shall be in such form and contain such information as the board\nshall determine and shall be made available by the city to the public.\nIn order to avoid duplicative reports and reporting requirements, to the\nextent that the city is required to submit monthly or quarterly\nfinancial reports to the department of the treasury pursuant to any\nagreement or arrangement made in connection with federal guarantees of\nnotes or bonds issued by the city or a state financing agency, copies of\nsuch reports shall be submitted to the board in satisfaction of the\nmonthly and quarterly reporting requirements set forth above, together\nwith such additional information as the board may require. Each monthly\nand quarterly report herein required to be submitted to the board must\nindicate any variance between actual and budgeted revenues, expenses or\ncash for the period covered by such report.\n h. The board shall issue, to the appropriate officials of the city and\nthe covered organizations, such orders as it deems necessary to\naccomplish the purposes of this act, including but not limited to timely\nand satisfactory implementation of an approved financial plan. Any order\nso issued shall be binding upon the official to whom it was issued and\nfailure to comply with such order shall subject the official to the\npenalties described in section eleven of this act.\n i. The board shall coordinate with the municipal assistance\ncorporation for the city of New York and the deputy comptroller with\nrespect to the performance of its review and monitoring of the revenues\nand expenditures of the city and the covered organizations.\n 2. In the event of any default by the city on its outstanding bonds or\nnotes, and so long as such default has not been cured, the board may,\nany provisions of this act notwithstanding, take any action that it is\nauthorized to take pursuant to title six-A of article two of the local\nfinance law, and may direct the city to take any action that the city is\nauthorized to take under such law.\n * 3. (a) Notwithstanding any provision of the New York City Collective\nBargaining Law, codified as chapter fifty-four of the New York city\nadministrative code, or any general or special law to the contrary, any\nreport or recommendation of an impasse panel constituted pursuant to\nsuch chapter which provides for an increase in wages or fringe benefits\nof any employee of the city or covered organization, in addition to\nconsidering any standard or factor required to be considered by\napplicable law, including the standards enumerated in section\n1173-7.0(c)(3)(b) of such chapter, shall also take into consideration\nand accord substantial weight to the financial ability of the city and\nor covered organization to pay the cost of such increase in wages or\nfringe benefits.\n (b) The board of collective bargaining constituted pursuant to such\nchapter, when reviewing such report or recommendation before proceeding\nto other issues, shall make a threshold determination as to whether such\nreport or recommendation for an increase in wages or fringe benefits is\nwithin the city's and or covered organization's financial ability to\npay. If the threshold determination is in the negative, the matter shall\nbe remitted to the impasse panel for further consideration. If the\nthreshold determination is in the affirmative, the further review of the\nreport or recommendation with respect to other issues, if any, shall\nproceed as provided by law. Unless the parties stipulate otherwise, the\nthreshold determination shall be made within thirty days after\nsubmission of the report or recommendation to the board of collective\nbargaining.\n (c) Any determination pursuant to article eight of the labor law or\nany agreement or stipulation entered into in lieu thereof which provides\nfor an increase in wages or fringe benefits of any employee of the city\nor covered organization shall, in addition to considering any standard\nor factor required to be considered by applicable law, also take into\nconsideration and accord substantial weight to the financial ability of\nthe city and or covered organization to pay the cost of such increase.\n (d) Any report or recommendation of a fact finding or similar type\npanel or any interest arbitration award which provides for an increase\nin wages or fringe benefits of any employee of the city or covered\norganization not subject to the provisions of the New York City\nCollective Bargaining Law, codified as chapter fifty-four of the New\nYork city administrative code, shall, in addition to considering any\nstandard or factor required to be considered by applicable law, also\ntake into consideration and accord substantial weight to the financial\nability of the city and or covered organization to pay the cost of such\nincrease.\n (e) Any party to a proceeding before the board of collective\nbargaining as described in paragraph (b) or other body as described in\nparagraphs (c) or (d) hereof may commence a special proceeding in the\nappellate division, first department, supreme court, state of New York,\nto review the threshold determination as to the city and or covered\norganization's financial ability to pay. Such proceeding shall be\ncommenced not later than thirty days after the final determination has\nbeen made by the board of collective bargaining in the case of paragraph\n(b) or other body in the case of paragraphs (c) or (d). Such proceeding\nshall have preference over all other causes in such appellate division,\nother than causes relating to the election law.\n (f) The court shall make a de novo review of the record solely for the\npurpose of determining whether an award of an increase in wages or\nfringe benefits was within the city's and or covered organization's\nfinancial ability to pay. The court's findings as to such issue shall be\nbased upon a preponderance of all the evidence set forth in the record.\nUnless the parties stipulate otherwise, arguments or submission shall be\nhad within fifteen days after commencement of the special proceeding and\nthe court shall render its decision within fifteen days thereafter. All\nquestions, other than the question relating to the threshold\ndetermination, shall be reviewed by the appellate division in the same\nproceeding in the manner provided by articles seventy-five or\nseventy-eight of the civil practice law and rules as may be appropriate,\nnotwithstanding that the issue would otherwise have been cognizable in\nthe first instance before a special or trial term of the supreme court.\nIf an appeal shall otherwise lie from such determination of the\nappellate division to the court of appeals, notice of such appeal shall\nbe filed within thirty days after the entry of the final order or\njudgment of the appellate division if such appeal is of right or within\nten days after entry of an order granting leave to appeal and such\nappeal shall have preference over all other appeals other than appeals\nrelating to the election law.\n (g) At any stage of any proceeding under paragraphs (a), (b), (c), (d)\nand (e) hereof or any appeal from an order or judgment therefrom, the\nboard may intervene as a party on the issue of the financial ability of\nthe city and or covered organization to pay the cost of an increase in\nwages or fringe benefits.\n (h) For the purposes of this subdivision, financial ability to pay\nshall mean the financial ability of the city and or covered organization\nto pay the cost of any increase in wages or fringe benefits without\nrequiring an increase in the level of city taxes existing at the time of\nthe commencement of a proceeding under paragraph (a), (c) or (d) hereof.\n (i) The provisions of this subdivision shall terminate on June\nthirtieth, nineteen hundred eighty-six.\n * NB Expires June 30, 1986\n 4. During a control period, except upon approval by the board in\naccordance with the provisions of paragraph e or f of subdivision one of\nthis section, as the board shall determine, neither the city nor a\ncovered organization shall enter any agreement or other arrangement,\nwhether or not it creates a debt of the city or a covered organization,\npursuant to which the revenues or credit of the city may be directly or\nindirectly pledged, encumbered, committed or promised, contingently or\notherwise, for the payment of obligations of a public benefit\ncorporation. Nothing in this subdivision shall limit the right of the\ncity to comply with the provisions of any existing agreement or other\narrangement in respect of the obligations of a public benefit\ncorporation.\n 5. The board may employ such consultants as it may deem necessary to\nassist it in performing its functions required under this act.\n 6. The board shall have the authority to make and execute agreements\nand all other instruments which the board deems necessary for the\nexercise of its powers and functions including, in connection with any\nagreement by the federal government or any agency or instrumentality\nthereof to guarantee the payment of the principal of or interest on\nbonds or notes issued by the city or by a state financing agency, to\nenter into one or more agreements containing terms and conditions\nrequired by the secretary of the treasury pursuant to the New York City\nLoan Guarantee Act of l978, Public Law 95-339 with the federal\ngovernment or any agency or instrumentality thereof with respect to such\nguarantee or any matters related thereto and to comply with such terms\nand conditions.\n 7. The board may appoint qualified individuals to participate as\nmembers of such audit, productivity or similar committees or councils as\nthe city may from time to time establish in consultation with the board.\nSuch individuals, however, shall not be deemed to be officers, employees\nor agents of the board. The board shall review and report on, not less\nthan annually, the development and implementation of methods for\nenhancing the productivity of the city's labor force proposed by any\nsuch committee or council.\n * Terminates July 1, 2035 or ... see § 13\n