* Section 1. Short title. This act shall be known and may be cited
as the "New York State Financial Emergency Act for The City of New
York".
* Terminates July 1, 2035 or ... see § 13
* § 2. Definitions. As used in this act, the following words and terms
shall have the following meanings unless the context shall indicate
another or different meaning or intent.
1. "Comptroller" means the comptroller of the state of New York.
2. "City" means the city of New York.
3. "Mayor" means the mayor of the city of New York.
4. "City comptroller" means the comptroller of the city.
5. "Covered organization" means any governmental agency, public
authority or public benefit corporation which receives or may receive
monies directly, indirectly or contingently, (other than monies received
for the sale of goods or the rendering of services or the loan of monies
to the city) from the city, and in any event includes, without
limitation, the board of education of the city of New York, the board of
higher education of the city of New York, the New York city transitional
finance authority, the health and hospitals corporation, the New York
city transit authority, the New York city housing authority, the New
York city housing development corporation, city university construction
fund, Battery park city authority, New York city convention and
exhibition center corporation, Manhattan and Bronx surface transit
operating authority, Staten Island rapid transit operating authority,
the New York city sports authority and the Brooklyn sports center
authority but shall not include (i) any governmental agency, public
authority or public benefit corporation specifically exempted from the
provisions of this act by order of the board upon application of such
agency, authority, or corporation to the board or at the board's own
motion upon a finding by the board that such exemption does not
materially affect the ability of the city to adopt and maintain a budget
pursuant to the provisions of this act and provided that at the time of
such exemption there shall have been and during the period of such
exemption there shall be an annual audit by a nationally recognized
independent certified public accounting firm or consortium of firms, one
of which shall be a nationally recognized firm, of the covered
organization's financial statements performed in accordance with
generally accepted auditing standards and report by such auditor thereon
which includes an opinion that the financial statements so audited have
been prepared in accordance with generally accepted accounting
principles (subject to the provisions of subdivision two-a of section
eight of this act) and such other information as such auditors deem
appropriate, (ii) any state public authority as defined in section two
hundred one of the civil service law, unless specifically named above,
or (iii) any governmental agency, authority, commission or
instrumentality created by compact or agreement between the state of New
York and another state or states; provided, however, that the board may
terminate any exemption granted by order of the board pursuant to this
subdivision upon a determination that the circumstances upon which such
exemption was granted are no longer applicable.
6. "Board" means the governmental agency created by section five of
this act.
7. "Deputy comptroller" means the deputy comptroller for the city of
New York created by section forty-one-a of the executive law.
8. "Municipal assistance corporation for the city of New York" means
the corporate governmental agency created by section three thousand
thirty-three of the public authorities law.
9. "Short-term obligations" means tax anticipation notes, bond
anticipation notes, revenue anticipation notes, budget notes and urban
renewal notes of the city.
10. "Revenues" mean all taxes, federal and state aid, rents, fees,
charges, payments, all proceeds from borrowings and other income and
receipts paid or payable to or for the account of the city or any of the
covered organizations.
11. "Financial plan" means the financial plan of the city and the
covered organizations to be developed pursuant to section eight of this
act, as from time to time modified.
12. "Control period" means the period of time from the effective date
of this act until the date when (a) there shall no longer be effective
or outstanding any guarantee by the United States of America as to
payment of principal of or interest on any note or bond issued by the
city or a state financing agency, (b) the board shall determine, based
on annual audit reports furnished in accordance with section seven-a,
that for each of the three immediately preceding fiscal years, the city
has adopted and adhered to budgets covering all expenditures other than
capital items, the results of which did not show a deficit when reported
in accordance with generally accepted accounting principles subject to
the provisions of subdivision two-a of section eight of this act and (c)
the comptroller of the state and the comptroller of the city jointly
shall certify that securities sold by or for the benefit of the city
during the fiscal year immediately preceding such date and the then
current fiscal year in the general public market satisfied the capital
and seasonal financing requirements of the city during such period and
that there is a substantial likelihood that such securities can be sold
in the general public market from such date through the end of the next
succeeding fiscal year in amounts which will satisfy substantially all
of the capital and seasonal financing requirements of the city during
such period in accordance with the financial plan then in effect,
provided that for these purposes sales to any fund whose governing body
includes any designated representative of the state or city or to any
financial institution which participates in a private placement for the
purchase of securities for the benefit of the city during its nineteen
hundred seventy-nine fiscal year shall not be deemed sales in the
general public market, unless in the case of sales to such a financial
institution such comptrollers jointly certify at the time of each such
sale that a sale could have been made in such amount and on reasonably
comparable terms in the general public market. After termination of the
control period in accordance with the foregoing provisions and until
there shall no longer be outstanding any notes or bonds issued by the
city or a state financing agency which are entitled to the benefits of
the pledge and agreement authorized by section ten-a hereof, the board
shall reimpose a control period upon a determination at any time that
any of the following events has occurred or that there is a substantial
likelihood and imminence of such occurrence: (i) the city shall have
failed to pay the principal of or interest on any of its bonds or notes
when due or payable (other than notes held by the municipal assistance
corporation for the city of New York to the extent that such corporation
has evidenced its intention not to present such notes for payment during
the fiscal year in which the determination is made provided that such
notes were held by such corporation on June thirtieth, nineteen hundred
seventy-eight or were issued in exchange for or in refunding or renewal
of notes held by such corporation on such date), (ii) the city shall
have incurred a deficit of more than one hundred million dollars during
its fiscal year in the results of operations covered by a budget
covering all expenditures other than capital items as reported in
accordance with generally accepted accounting principles, subject to the
provisions of subdivision two-a of section eight of this act, (iii) the
city shall have issued notes in violation of section nine-b of this act
as amended from time to time, (iv) the city shall have otherwise
violated any provision of this act and such violation substantially
impairs the ability of the city to pay principal of or interest on its
bonds or notes when due and payable or its ability to adopt or adhere to
a budget covering all expenditures other than capital items balanced in
accordance with this act or (v) the comptrollers' joint certification at
any time, at the request of the board or on the comptrollers' joint
initiative, which joint certification shall be made from time to time as
promptly as circumstances warrant and reported to the board, that on the
basis of facts existing at such time they could not make the joint
certification described by clause (c) of the preceding sentence. The
board shall terminate any such reimposed control period when it
determines that none of the conditions which would permit the board to
reimpose a control period exist. After termination of a control period
the board shall annually consider items (i) through (v) above and
determine whether, in its judgment, any of the events described in such
items have occurred and the board shall publish each such determination.
Each such joint certification made by the comptrollers hereunder shall
be based on their separate written determinations which shall take into
account a report and opinion of a nationally recognized independent
expert in the marketing of municipal securities selected by the board as
well as any other information which may be available to each comptroller
and each such separate written determination by the comptrollers shall
have annexed thereto the report and opinion of such expert and any other
information taken into account and shall be made public when delivered
to the board. Notwithstanding any part of the foregoing to the contrary,
in no event shall any control period continue beyond the earlier of (a)
July first, two thousand eight or (b) the date (i) when all bonds and
notes containing the pledge and agreement authorized by section ten-a of
this act are refunded, redeemed, discharged or otherwise defeased or
(ii) when there shall no longer be outstanding any guarantee by the
United States of America or any agency or instrumentality thereof as to
payment of principal of or interest on any note or bond issued by the
city or a state financing agency, whichever of (i) or (ii) shall occur
later.
13. "Debt service repayment account" means the special account
established pursuant to subdivision four of section nine of this act.
14. "Fund" means the general debt service fund established pursuant to
section nine-a of this act.
15. "Board fund" means the board fund established pursuant to section
nine of this act.
16. "TAN debt service account" means the tax anticipation note debt
service account established within the fund pursuant to section nine-a
of this act.
17. "RAN debt service account" means the revenue anticipation note
debt service account established within the fund pursuant to section
nine-a of this act.
18. "Available funds" means at any date of computation the monies held
by the city or a covered organization which (i) are not required (a) to
be applied to the fund, the TAN debt service account, the RAN debt
service account or otherwise to meet the debt service requirements of
the city and the covered organizations on their bonds and notes (other
than bonds and notes of covered organizations payable from revenues not
included in the fund) as they become due, or (b) to pay other
liabilities of the city and the covered organizations having statutory
or contractual priority over remaining liabilities of the city and the
covered organizations, and (ii) therefore, may be applied to the payment
of other obligations on an allocated basis as specified by the city for
expenditures in accordance with a financial plan.
19. "Available tax levy" with respect to an issue of tax anticipation
notes means at any date of computation the total amount of city real
estate taxes or assessments projected, consistent with the financial
plan then in effect, to be received in cash on or before the fifth day
preceding the maturity date of such tax anticipation note issue, less
amounts required during the period between the date of computation and
the fifth day preceding such maturity date to be paid into the general
debt service fund or otherwise required to pay interest payable on other
outstanding city bonds and notes, principal (including payments into
sinking funds) coming due on outstanding city bonds and principal to be
paid from sources other than the proceeds of bonds or renewal notes on
other outstanding city notes (exclusive of revenue anticipation notes or
renewals thereof issued less than two years prior to the date of
computation) but not including payments from sinking funds required by
the terms of certain city bonds. For the purposes of this subdivision
such amounts required shall not include principal of or interest on any
notes of the city held by the municipal assistance corporation for the
city of New York to the extent that such corporation has evidenced its
intention not to present such notes for payment of principal or interest
during the fiscal year in which the computation is made provided that
such notes were held by such corporation on June thirtieth, nineteen
hundred seventy-eight or were issued in exchange for or in refunding or
renewal of notes held by such corporation on such date.
20. "State financing agency" means the municipal assistance
corporation for the city of New York or its successor.
* Terminates July 1, 2035 or ... see § 13
* § 2-a. Legislative declaration of financial emergency. The
legislature hereby finds and declares that a state of financial
emergency continues to exist within the city. The legislature further
finds and declares that the maintenance by the city of a balanced budget
in accordance with generally accepted accounting principles and the
city's borrowing practices are and will continue to be a matter of
overriding state concern, and that it is also appropriate and desirable
for the legislature to exercise its duty under section twelve of article
eight of the state constitution to restrict the powers of the city to
prevent abuses in taxation and assessments and in contracting of
indebtedness by the city.
* Terminates July 1, 2035 or ... see § 13
* § 3. General rights and prohibitions. 1. Neither the city nor any
covered organization shall borrow or expend any monies, or in any way,
directly or indirectly, expressly or implicitly, engage its credit
during any control period except in compliance with the provisions of
this act.
2. Nothing contained in this act shall limit the right of the city or
any covered organization to comply with the provisions of any existing
contract with or for the benefit of the holders of any bonds or notes of
the city or such covered organization or any public authority or public
benefit corporation.
3. Nothing contained in this act shall be construed to impair the
right of employees to organize or to bargain collectively.
* Terminates July 1, 2035 or ... see § 13
* § 4. Power of city or covered organization to determine the
expenditure of available funds. Nothing contained in this act shall be
construed to limit the power of the city or a covered organization to
determine, from time to time, within available funds for the city or for
such covered organization, the purposes for which expenditures are to be
made by the city or such covered organization and the amounts of such
expenditures, consistent with the aggregate expenditures then permitted
under the financial plan for the city or such covered organization.
* Terminates July 1, 2035 or ... see § 13
* § 5. New York state financial control board; created. There is
hereby created the New York state financial control board. The board
shall be a governmental agency and instrumentality of the state and it
shall have such powers and functions as are set forth in this act.
* Terminates July 1, 2035 or ... see § 13
* § 6. Administration of the board. 1. The membership of the board
shall be the governor, the state comptroller (pursuant to his authority
to supervise the accounts of any political subdivision of the state),
the mayor, the city comptroller and three members appointed by the
governor with the advice and consent of the senate. At least two of the
appointed members shall be residents of the city or have their principal
place of business in the city. Such appointed members shall serve at the
pleasure of the governor. The governor shall be the chairman of the
board and the governor or his representative shall preside over all
meetings of the board. The board shall act by majority vote of the
entire board. The board shall maintain a record of its proceedings in
such form as it may determine, but such record shall indicate attendance
and all votes cast by each member. Every member of the board, who is
otherwise an elected official of the state or city, shall be entitled to
designate a representative to attend, in his place, meetings of the
board and to vote or otherwise act in his behalf. Written notice of such
designation shall be furnished to the board by the designating member
prior to any meeting attended by his representative. Any such
representative shall serve at the pleasure of the designating member. No
such representative shall be authorized to delegate any of his duties or
functions to any other person. The lieutenant governor, temporary
president of the senate, the minority leader of the senate, speaker and
minority leader of the assembly, the president of the council of the
city of New York, the city board of estimate acting by majority vote,
and the vice-chairman and the minority leader of the council of the city
of New York, shall each be entitled to appoint a representative to the
board. Each such representative shall be entitled to receive notice of
and to attend all meetings of the board but shall not be entitled to
vote. No representative shall be an employee or officer of the federal,
state or city governments. Each representative shall serve at the
pleasure of the appointing official or body, shall be eligible for
reappointment, and shall hold office until his successor has been
appointed.
2. Notwithstanding any inconsistent provisions of law, general,
special or local, no officer or employee of the state, or political
subdivision of the state, any governmental entity operating any public
school or college or other public agency or instrumentality or unit of
government which exercises governmental powers under the laws of the
state, shall forfeit his office or employment by reason of his
acceptance or appointment as a member, representative, officer, employee
or agent of the board nor shall service as such member, representative,
officer, employee or agent of the board be deemed incompatible or in
conflict with such office or employment.
3. The members of the board appointed by the governor and all
representatives designated by members of the board shall serve without
salary or per diem allowance but shall be entitled to reimbursement for
actual and necessary expenses incurred in the performance of official
duties under this act, provided however that such members and
representatives are not, at the time such expenses are incurred, public
employees otherwise entitled to such reimbursement.
4. The governor and the mayor, jointly, shall appoint an executive
director of the board who shall serve at the pleasure of the board and
may be removed by the board. The board may delegate to the executive
director or to one or more of its other officers, employees or agents,
such powers and duties as the board may deem proper, except any duties
inconsistent with the duties and functions prescribed by any other
office or position any such person may hold.
* Terminates July 1, 2035 or ... see § 13
* § 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, 2035 or ... see § 13
* § 7-a. Reports of the city. 1. The city shall take such action as
may be necessary to enable a nationally recognized independent certified
public accounting firm or consortium of firms, one of which at least is
a nationally recognized independent certified public accounting firm, to
perform an annual audit in accordance with generally accepted auditing
standards and to furnish to the board the report on such audit prepared
by such firm or consortium of firms, which report shall include an
opinion as to whether the city's financial statements have been prepared
in accordance with generally accepted accounting principles subject to
the provisions of subdivision two-a of section eight of this act and
shall state whether the audit of such financial statements was made in
accordance with generally accepted auditing standards and accordingly
included such tests of the accounting records and such other auditing
procedures as were considered necessary under the circumstances. Such
report shall note the nature and extent of variations, if any, from
generally accepted accounting principles reflected in the city's
financial statements. The city shall make available for inspection and
copying all books, records, work papers and other data and material as
required by such auditors, and the city shall make its officers and
employees available to, and shall cooperate with such auditors so as to
permit such annual audit to be completed and the report issued to the
city and to the board within four months after the close of the city's
fiscal year.
2. Not later than January fifteenth, nineteen hundred eighty-one, the
city shall issue a report to the board on its program designed to enable
the city (i) during its fiscal years ending June thirtieth, nineteen
hundred eighty-three and June thirtieth, nineteen hundred eighty-four,
to minimize its dependence upon the state financing agency to the extent
that it shall be prudent to satisfy the city's financing needs by the
sale of obligations of the city or its agencies in the public markets,
and (ii) thereafter to satisfy its financing needs entirely by the sale
of such obligations. The report shall describe such actions that the
city proposes to take, in addition to those actions required by law, to
implement the program and shall contain such further information as the
board may reasonably specify. After the issuance of such initial report,
the city shall report to the board at least semi-annually through June
thirtieth, nineteen hundred eighty-two and thereafter at least quarterly
on the actions it has taken to implement the program and on the results
thereof. The city may revise the program from time to time but shall
promptly describe any revisions and the reasons therefor to the board.
The city may comply with the requirements of this subdivision by
submitting the necessary information as supplementary material to a
financial plan or financial plan modification in accordance with the
standards and procedures of section eight of this act. The provisions of
this subdivision shall terminate on June thirtieth, nineteen hundred
eighty-five.
* Terminates July 1, 2035 or ... see § 13
* § 8. Development of the financial plan. 1. Pursuant to the
procedures contained in subdivision three of this section, each year the
city shall develop, and may from time to time modify, with the approval
of the board during a control period, a four year financial plan
covering the city and the covered organizations.
Each such financial plan and financial plan modification shall comply
with the requirements of subdivision four of this section and shall,
except as otherwise provided pursuant to subdivision two-a of this
section, conform to the following standards:
a. For its fiscal years ending June thirtieth, nineteen hundred
seventy-nine through June thirtieth, nineteen hundred eighty-one, the
city's budget covering all expenditures other than capital items shall
be prepared and balanced so that the results thereof would not show a
deficit when reported in accordance with the accounting principles set
forth in the state comptroller's uniform system of accounts for
municipalities, as the same may be modified by the comptroller, in
consultation with the city comptroller, for application to the city;
subject to the provision of subdivision four of section three thousand
thirty-eight of the public authorities law with respect to contributions
by the city or other public employer to any retirement system or pension
fund and subject to the provision of paragraph (c) of subdivision five
of section three thousand thirty-eight of the public authorities law
with respect to expense items included in the capital budget of the
city. For the fiscal year ending June thirtieth, nineteen hundred
eighty-two, and for each fiscal year thereafter, the city's budget
covering all expenditures other than capital items shall be prepared and
balanced so that the results thereof would not show a deficit when
reported in accordance with generally accepted accounting principles and
would permit comparison of the budget with the report of actual
financial results prepared in accordance with generally accepted
accounting principles. With respect to financial plans that include the
fiscal years ending June thirtieth, nineteen hundred seventy-nine
through June thirtieth, nineteen hundred eighty-one, the city's budget
covering all expenditures other than capital items shall be prepared in
accordance with generally accepted accounting principles and there shall
be substantial progress in each such fiscal year towards achieving a
city budget covering all expenditures other than capital items the
results of which would not show a deficit when reported in accordance
with generally accepted accounting principles. The city shall eliminate
expense items from its capital budget not later than the commencement of
the fiscal year ending June thirtieth, nineteen hundred eighty-two. For
the fiscal year ending June thirtieth, nineteen hundred eighty-nine, and
for each fiscal year thereafter, the budgets covering all expenditures
other than capital items of each of the covered organizations shall be
prepared and balanced so that the results thereof would not show a
deficit when reported in accordance with generally accepted accounting
principles; and for each fiscal year prior thereto, there shall be
substantial progress towards such goal. Notwithstanding the foregoing
and the provisions of any general or special state law or local law to
the contrary, including but not limited to the New York city charter:
(i) all costs that would be capital costs in accordance with generally
accepted accounting principles, but for the application of governmental
accounting standards board statement number forty-nine, shall be deemed
to be capital costs for purposes of this act and any other provision of
state or local law, including but not limited to the New York city
charter, relevant to the treatment of such costs; and (ii) the
determination as to the existence of a deficit pursuant to this act and
any other provision of state or local law, including but not limited to
the New York city charter, shall be made without regard to changes in
restricted fund balances, as defined by the governmental accounting
standards board, where restrictions in relation to such fund balances
are imposed by state or federal law or regulation, or otherwise by
private or governmental parties other than the city of New York, and
without regard to funds held in the health stabilization fund, the
school crossing guards health insurance fund, any revenue stabilization
fund established pursuant to section fifteen hundred twenty-eight of the
New York city charter and the management benefits fund established by
the city of New York. Deposits into any such revenue stabilization fund
shall be deemed to be expenses of such city in the fiscal year in which
such deposits are made, and withdrawals from such fund shall be deemed
to be revenues of such city in the year in which such withdrawals are
made; provided however, that surpluses of such city, whether accumulated
from fiscal years ending prior to the effective date of the chapter of
the laws of two thousand twenty that amended this paragraph or existing
at the close of any fiscal year ending after such effective date, shall
be deposited into such revenue stabilization fund as soon as
practicable, and such deposits shall not be deemed expenses of the city
in the fiscal year in which such deposits are made.
b. The limitations on its outstanding short-term obligations required
by subdivision nine of section three thousand thirty-eight of the public
authorities law and by section nine-b of this act shall be observed at
all times, as each is amended from time to time.
c. Provision shall be made for the payment in full of the debt service
on all bonds and notes of the city and the covered organizations (other
than notes held by the municipal assistance corporation for the city of
New York to the extent that such corporation has evidenced its intention
not to present such notes for payment during the fiscal year in which
the determination is made provided that such notes were held by such
corporation on June thirtieth, nineteen hundred seventy-eight or were
issued in exchange for or in refunding or renewal of notes held by such
corporation on such date), for the adequate funding of programs of the
city and the covered organizations which are mandated by state or
federal law and for which obligations are going to be incurred during
the fiscal year and for payment of a guarantee fee or any other amounts
required by the United States of America or any agency or
instrumentality thereof in connection with the guarantee of the payment
of the principal of or interest on bonds or notes issued by the city.
d. All projections of revenues and expenditures contained in a
financial plan shall be based on reasonable and appropriate assumptions
and methods of estimation. All cash flow projections shall be based upon
reasonable and appropriate assumptions as to sources and uses of cash
(including but not limited to the timing thereof), and shall provide for
operations of the city and covered organizations to be conducted within
the cash resources so projected.
e. The city shall provide a general reserve for each fiscal year to
cover potential reductions in its projected revenues or increases in its
projected expenditures during each such fiscal year. The amount provided
for such general reserve shall be estimated by the city in accordance
with paragraph d of this subdivision, but in no event shall it be less
than one hundred million dollars at the beginning of any fiscal year.
f. For financial plans beginning with the fiscal year ending June
thirtieth, nineteen hundred eighty-three or any succeeding fiscal year,
the first fiscal year included in any financial plan shall make
provision for the repayment of any deficit incurred by the city during
the preceding fiscal year.
2. In developing the financial plan the city shall seek to achieve a
stabilized work force for the city and, to the extent a reduction in the
work force is required, primary recourse shall be had to the attrition
process to accomplish such reduction.
2-a. The city and the board shall confer concerning the projected
effect on the budgets of the city and the covered organizations of any
change in generally accepted accounting principles, or change in the
application of generally accepted accounting principles to the city and
the covered organizations, made after the effective date of this act. If
the board determines that immediate compliance with such change will
have a material effect on such budgets over a time period insufficient
to accommodate the effect without a substantial adverse impact on the
delivery of essential services, the board may authorize and approve a
method of phasing the requirements of such change into such budgets over
such reasonably expeditious time period as the board deems appropriate.
3. The financial plan shall be developed and, during a control period,
shall be approved, and may from time to time be modified, in accordance
with the following procedures:
a. The city shall, by June first, nineteen hundred seventy-eight,
prepare and submit a financial plan to the board covering the four year
period which begins with the fiscal year ending June thirtieth, nineteen
hundred seventy-nine. Thereafter, at least fifty days prior to the
beginning of each fiscal year or on such other date as the board may
approve upon the request of the city, the city shall prepare and submit
a financial plan to the board covering the four year period beginning
with such fiscal year. On such dates the mayor shall also submit to the
board the city's executive expense, revenue and capital budgets for the
ensuing fiscal year and a certificate of the mayor stating that such
budgets are consistent with the financial plan submitted therewith, that
projections contained in the budgets and financial plan are based upon
reasonable and appropriate assumptions and methods of estimation, and
that operation within the budgets is feasible.
b. (i) During a control period the board shall promptly review each
financial plan and financial plan modification submitted by the city.
Not more than forty-five days after submission of a financial plan or
more than thirty days after submission of a financial plan modification
the board shall determine whether the financial plan or financial plan
modification is complete and complies with the standards set forth in
subdivision one of this section and shall approve or disapprove the
financial plan or financial plan modification in accordance with the
provisions of this section. If the board determines that the financial
plan or financial plan modification is complete and complies with the
standards set forth in subdivision one of this section, the board shall
approve the financial plan or financial plan modification. Upon making
such determination the board shall make a certification to the city
setting forth revenue estimates approved by the board in accordance with
such determination.
(ii) At all times other than during a control period the board shall
promptly review each financial plan and financial plan modification
submitted by the city. If the board determines after such review that
the financial plan or financial plan modification submitted by the city
is not in accordance with the standards set forth in subdivision one of
this section, the board shall promptly so notify the city and may take
such other action under this act as it deems appropriate.
c. The board shall disapprove a financial plan or financial plan
modification if during a control period it determines that the financial
plan or financial plan modification is incomplete or fails to comply
with the provisions of subdivision one of this section. In disapproving
a financial plan or a financial plan modification the board may order
that one or more of the following actions be taken:
(i) expenditures or reserves to assure availability of amounts
required for debt service requirements on all bonds and notes of the
city and the covered organizations or expenditures required for adequate
funding of programs of the city and the covered organizations mandated
by state or federal law and for which obligations are going to be
incurred during the fiscal year, be increased to the levels required to
provide for their payment in full;
(ii) the revenue projections (or any item thereof) during any period
be adjusted to comply with the standards set forth in subdivision one of
this section; and
(iii) the aggregate expenditures projected for any period be reduced
to conform to revenue estimates certified by the board in order to
comply with the standards set forth in subdivision one of this section.
d. During a control period in the event that the city shall, for any
reason, fail to submit a financial plan prior to the beginning of a
fiscal year, as required by paragraph a of this subdivision, or in the
event that the board has not, for any reason permitted under this act,
approved a financial plan submitted by the city prior to the beginning
of a fiscal year, the board shall formulate and adopt a financial plan
to be effective until the board approves a financial plan submitted by
the city. Any financial plan so formulated by the board shall comply
with the standards set forth in subdivision one of this section. The
budgets and operations of the city and the covered organizations at all
times shall be in conformance and compliance with the financial plan
then in effect.
e. After the initial adoption by the city, or the approval by the
board during a control period, of a financial plan, projections of
revenues and expenditures and other estimates contained in the financial
plan shall be reexamined by the board at least quarterly in consultation
with the city and the covered organizations, and during a control period
the city shall prepare and submit to the board financial plan
modifications at such times, in such detail and within such time periods
as the board may require in order to modify the financial plan to
conform to the standards set forth in subdivision one of this section.
During a control period in the event the board determines that (i)
revenue estimates (or any item thereof) must be adjusted to ensure
compliance with the standards set forth in subdivision one of this
section, or (ii) that the city or a covered organization is expending
funds at a rate that would cause expenditures to exceed the aggregate
expenditure limitation for the city or covered organization provided for
in the financial plan then in effect, prior to the expiration of the
fiscal year, the city shall submit a financial plan modification to
effect such adjustments in revenue estimates and reductions in total
expenditures as may be necessary to conform to such standards or
aggregate expenditure limitations. If during a control period the city
fails to submit such modification after such determination as to
adjustments in revenue estimates or such determination as to rates of
expenditures, or to submit a financial plan modification in the detail
or within the time period specified by the board, or if such
modification is disapproved by the board as not conforming to the
standards set forth in subdivision one of this section, the board may
formulate and adopt such financial plan modification as it deems
appropriate to ensure that the financial plan continues to meet such
standards. Such modification shall become effective on its adoption.
Notwithstanding the provisions of this section, in the event the city
shall determine that, due to unforeseen events during a fiscal year,
compliance with the standards set forth in paragraph a of subdivision
one of this section would result in a material adverse impact upon the
delivery of essential services, the city shall notify the board of such
determination, together with such information, projections or analyses
relating thereto as the board may require, and shall submit a
modification to the financial plan reflecting such determination. During
a control period the board shall disapprove any such modification unless
it finds that (i) the city's determination is supported by information,
projections and analyses which the board deems substantially accurate in
all material respects and (ii) such events, in its judgment, warrant
such modification to the financial plan to avoid such adverse impact on
the delivery of essential services.
f. The city may, from time to time, submit financial plan
modifications for review by the board. During a control period the board
shall approve such modifications unless it determines that such
modifications would constitute grounds for disapproval of the financial
plan pursuant to paragraph c of this subdivision, or if applicable,
pursuant to paragraph e of this subdivision.
g. Anything contained in this act to the contrary notwithstanding,
during a control period the board may at any time disapprove or after
consultation with the city revise the revenue estimates (or any item
thereof) prepared by the city in connection with the preparation of a
financial plan or any modification thereto and determined by the board
not to be based on assumptions and methods of estimation which are
reasonable and appropriate under the circumstances and in view of the
objectives and purposes of the act. The board may after consultation
with the city determine the estimated revenues of the city and the
covered organizations provided, however, that any revenues estimated by
the board shall be based on reasonable and appropriate assumptions and
methods of estimation.
4. Each financial plan shall be in such form and shall contain such
information for each year during which the financial plan is in effect
as the board may specify, and shall, in such detail as the board may
from time to time prescribe, include projections of all revenues,
expenditures and cash flows (including but not limited to projected
capital expenditures and debt issuances) and a schedule of projected
capital commitments of the city and except in such instances as the
board may deem appropriate each of the covered organizations. In
addition, each financial plan and financial plan modification shall
include a statement of the significant assumptions and methods of
estimation used in arriving at the projections contained therein, set
forth in such form and in such detail as the board may from time to time
prescribe.
5. The city and the covered organizations shall promptly furnish the
board with any information which the board may request to satisfy itself
that (i) projected employment levels, collective bargaining agreements
and other action relating to employee costs, capital construction and
such other matters as the board may specify, are consistent with the
provisions made for such costs in the financial plan, (ii) the city and
the covered organizations are taking whatever action is necessary with
respect to programs mandated by state and federal law to ensure that
expenditures for such programs are limited to and covered by the
expenditures stated in the financial plan, and (iii) adequate reserves
are provided to maintain programs mandated by state and federal law and
for which obligations are going to be incurred in the fiscal year and
other essential programs in the event revenues have been overestimated
or expenditures underestimated for any period.
6. For each financial plan and financial plan modification to be
prepared and submitted by the city to the board pursuant to the
provisions of this section, the covered organizations shall submit to
the city such information with respect to their projected expenditures,
revenues, cash flows and a schedule of projected capital commitments for
each year covered by such financial plan or modification as the city
shall determine. Notwithstanding any other provision of law limiting the
authority of the city with respect to any covered organization, the
city, in the preparation and submission of the financial plan and
modifications thereof, shall (except for debt service or for other
expenditures to the extent that such expenditures are required by law)
have the power to determine the aggregate expenditures to be allocated
to any covered organization in the financial plan and any modifications
thereto.
* Terminates July 1, 2035 or ... see § 13
* § 9. Establishment and application of the board fund. 1. There is
hereby established a fund designated the board fund. Commencing on
October twentieth, nineteen hundred seventy-five, and for the duration
of a control period, all revenues received or to be received by the city
or any covered organization shall, unless exempted by order of the
board, be revenues of the board fund and shall be for the account of the
city or the appropriate covered organizations, except (i) to the extent
expressly prohibited by federal law, (ii) where revenues of the city are
deposited in the general debt service fund, the TAN debt service account
or the RAN debt service account, or (iii) where such revenues are
pledged to the payment of any outstanding bonds, notes or other
obligations of covered organizations or state public authorities as
defined in section two hundred one of the civil service law.
Disbursement from the board fund shall be made by the board in
accordance with the approved financial plan except as provided in
subdivision five of this section nine. Commencing on October twentieth,
nineteen hundred seventy-five, and for the duration of a control period,
all funds and accounts established or thereafter established by the city
or the covered organizations shall, unless exempted by order of the
board, thereafter be funds and accounts of the board fund except to the
extent expressly prohibited by federal law or to the extent pledged by
covenants or agreements relating to any outstanding bonds, notes or
other obligations of covered organizations or public authorities as
defined in section two hundred one of the civil service law; and no
monies or funds held in the general debt service fund, the TAN debt
service account or the RAN debt service account shall be part of the
board fund. All such accounts of the board shall have such captions and
entries as the board shall determine to be necessary to credit the
foregoing revenues and receipts to the board fund. The monies of the
fund shall not be deemed to be money of the state or money under its
control.
2. The deposit of revenues into the board fund and the investment or
deposit of monies therein shall be made in accordance with and pursuant
to procedures established by the board.
3. In order to assure compliance with the financial plan, the board
shall from time to time adopt procedures controlling the disbursement of
monies from the board fund. The board shall authorize the city to make
all disbursements of city revenues from the board fund, which
disbursements shall be made in accordance with the approved financial
plan; provided, that the board may withdraw such authorization if it
determines that (a) any disbursements made or to be made by the city
have not been or are likely not to be in compliance with the approved
financial plan, (b) the city has violated any other provisions of this
act, or (c) the city has violated an agreement with any holder or
guarantor of bonds or notes issued by the city or a state financing
agency.
4. Within the board fund there is hereby established a special account
designated the debt service repayment account. The board shall from time
to time direct, in accordance with procedures adopted by the board, the
deposit in the debt service repayment account of such amounts as the
board shall, in its discretion, determine to be sufficient to meet the
debt service requirements of the covered organizations on their bonds
and notes (other than bonds and notes of covered organizations payable
from revenues not included in the board fund) as they become due.
Amounts in the debt service repayment account shall be used to meet such
debt service requirements of the covered organizations.
5. If at any time the board determines that the amount then held in
the board fund or the amount estimated by the board to be held in the
board fund is or will be insufficient to meet the expenditures in the
amounts and at the times required by the financial plan, the board shall
require disbursements from the board fund to be made in the following
order or priority unless otherwise required by law of the United States
of America: (i) the payment of amounts from the board fund to the debt
service repayment account, the general debt service fund, the TAN debt
service account and the RAN debt service account, to maintain therein
the amount required, to meet debt service requirements of the city and
the covered organizations on their bonds and notes as they may become
due, (ii) the payment of other liabilities having statutory or
contractual priority over remaining liabilities of the city and the
covered organizations whose monies are included in the board fund, and
(iii) the payment of other obligations on an allocated basis as
specified by the city for expenditures in accordance with the financial
plan provided that, in the event that the city fails to so specify, the
board may withhold payment of any of such other obligations or may
direct their payment pro rata.
6. The board shall cause to be performed such pre-audit and post-audit
reviews of the board funds and disbursements therefrom as it may
determine.
* Terminates July 1, 2035 or ... see § 13
* § 9-a. Establishment and application of a general debt service fund.
1. Commencing on the first day of the first full fiscal quarter
subsequent to the first sale of a federally guaranteed city obligation,
the city shall establish a general debt service fund for the purpose of
paying debt service due or becoming due in the then current fiscal year
and in subsequent fiscal years. All monies in the fund shall be held by
the comptroller, who shall administer and maintain the fund in
accordance with the provisions of this section.
2. All payments of or on account of real estate taxes or assessments,
other than the proceeds of tax anticipation notes, shall be immediately
upon receipt deposited in such fund. The comptroller shall retain,
disburse and apply monies in the fund during each month as follows:
a. During the first month of each fiscal quarter, there shall be
retained in the fund, subject to the provisions of subdivision three of
this section, all real estate tax payments deposited in the fund until
there shall have been retained from monies so deposited during such
month an amount equal to the total monthly debt service, computed as of
the date of any disbursement of money from the fund, for the second and
third months of such fiscal quarter; provided that such amount shall be
reduced by any amount already on deposit in the fund which may be used
to pay the monthly debt service for such months.
For purposes of this section, fiscal quarter shall mean the
three-month period beginning July first, October first, January first or
April first, and monthly debt service shall mean, as of any date of
computation, the amount of monies equal to the aggregate of (i) all
interest payable during such month on bonds and notes of the city, plus
(ii) the amount of principal (including payments into sinking funds)
maturing or otherwise coming due during such month on all bonds of the
city (excluding principal payments made from sinking funds required by
the terms of certain city bonds), plus (iii) the amount of principal to
be paid on notes of the city during such month from sources other than
the proceeds of bonds or renewal notes (exclusive of revenue
anticipation notes and tax anticipation notes or renewals thereof issued
less than two years prior to the date of computation).
b. During the second and third months of each fiscal quarter, there
shall be retained in the fund, subject to the provisions of subdivision
three of this section, all real estate tax payments deposited in the
fund until there shall have been retained from monies so deposited
during such month an amount equal to the total monthly debt service,
computed as of the date of any disbursement of monies from the fund, for
the first month of the next succeeding fiscal quarter; provided that
such amount shall be reduced by any amount already on deposit in the
fund which may be used to pay the monthly debt service for such month.
c. During any month of a fiscal quarter, after the retentions required
by paragraphs a and b of this subdivision have been made for such month,
the comptroller shall deposit any remaining balance of real estate taxes
received during such month, first into the TAN debt service account to
the extent required under subdivision six of this section, and second
into the board fund to be applied in accordance with procedures of the
board.
d. The city may at any time pay into the fund any monies required by
law to be used to pay monthly debt service and any other monies
available for such purpose.
3. The board may approve, subject to agreements made with the holders
or guarantors of outstanding notes or bonds issued by or for the benefit
of the city after the effective date of this act, criteria for
calculating a proportion of real estate tax receipts to be retained in
the fund in order to provide for the retention of amounts required by
the provisions of subdivision two of this section in lieu of the
retention of all initial receipts as required by such subdivision;
provided, that if the board at any time determines that retentions in
the fund pursuant to the provisions of such subdivision are or are
likely to be insufficient to provide for the payment of monthly debt
service when due, in order to ensure that the amounts on deposit in the
fund will be sufficient to pay monthly debt service when due, the board
shall require (i) that real estate tax receipts be retained in the fund
in greater amounts or at earlier dates than the provisions of such
subdivision require, or (ii) that other revenues or cash resources of
the city be paid into the fund. The board shall consider the impact of
earlier or larger retention of real estate tax receipts on the city's
seasonal borrowing requirements when determining whether it shall
require such additional retention or that other revenues or cash
resources of the city be paid into the fund. Prior to the issuance by
the city of any bonds or notes, the board shall review any criteria then
in effect which determine the proportion of real estate tax receipts to
be retained in the fund to determine whether the proposed debt service
schedule for such bonds or notes is consistent with the monies which
will be available therefor or whether such criteria should be revised.
The board shall from time to time take such action as it determines is
necessary, including disapproval of a proposed issue pursuant to
paragraph f of subdivision one of section seven, so that the monies in
the fund shall be adequate to meet debt service requirements.
4. Commencing on the first day of the second month of the first full
fiscal quarter subsequent to the first sale of a federally guaranteed
city obligation, the payment of monthly debt service shall be made,
first, from amounts retained in the fund. Amounts retained in the fund
shall be used only to pay debt service of the city.
5. Upon the issuance of any tax anticipation notes following the
effective date of this act, the comptroller shall establish and, so long
as any tax anticipation notes shall be outstanding, shall maintain a tax
anticipation note debt service account within the fund for the purpose
of paying the principal of tax anticipation notes.
6. The city shall determine the date on which the principal due or to
become due on an outstanding issue of tax anticipation notes shall equal
ninety percent of the available tax levy with respect to such issue, and
upon reasonable notice thereof the comptroller shall commence on such
date to pay into the TAN debt service account from collections of such
taxes and assessments, after retaining amounts required to be deposited
in the fund, amounts sufficient to pay when due, the principal of such
issue of tax anticipation notes. The payments of the principal of tax
anticipation notes shall be made, first, from amounts retained in the
TAN debt service account.
7. Upon the issuance of any revenue anticipation notes following the
effective date of this act, the comptroller shall establish and, so long
as any revenue anticipation notes shall be outstanding, shall maintain a
revenue anticipation note debt service account within the fund for the
purpose of paying the principal of revenue anticipation notes. Each
specific type of revenue in anticipation of which such notes are issued
and available for such purpose shall be deposited in such account
immediately upon receipt by the city. Where such revenue consists of
state aid or other revenue to be paid to the city by the comptroller, on
the date such revenue is payable to the city, the comptroller shall
deposit such revenue directly into such account in lieu of payment to
the city. All revenues deposited in the RAN debt service account shall
be paid immediately into the board fund except as otherwise provided in
subdivision eight of this section.
8. The city shall determine the date on which the principal due or to
become due on an outstanding issue of revenue anticipation notes shall
equal ninety percent of the total amount of revenue against which such
notes were issued remaining to be paid to the city on or before the
fifth day prior to the maturity date of such notes and upon reasonable
notice thereof the comptroller shall commence on such date to retain in
the RAN debt service account from amounts deposited or to be deposited
therein of each specific type of revenue in anticipation of which
revenue such anticipation notes were issued, an amount sufficient to
pay, when due, the principal of such revenue anticipation notes. Monies
retained in such account shall vest immediately in the comptroller in
trust for the benefit of the holders of the revenue anticipation notes
in anticipation of which such notes were issued. No person having any
claim of any kind in tort, contract or otherwise against such city shall
have any right to or claim against any monies of the state appropriated
by the state and in anticipation of which such notes have been issued,
other than a claim for payment by the holders of such notes, and such
monies shall not be subject to any order, judgment, lien, execution,
attachment, setoff or counter-claim by any such person; provided,
however, that nothing contained in this paragraph shall be construed to
limit, impair, impede or otherwise adversely affect in any manner the
rights or remedies of the purchasers and holders and owners of any bonds
or notes of the state or any agency, instrumentality, public benefit
corporation or political subdivision thereof, including the city of New
York, under which such purchasers and holders and owners have any right
of payment of such bonds or notes by recourse to state aid or local
assistance monies held by the state or for the payment of which bonds or
notes state aid or local assistance monies are a designated source. The
payment of the principal of revenue anticipation notes shall be made
first from amounts retained in the RAN debt service account.
9. Whenever the amount contained in the TAN debt service account or
the RAN debt service account exceeds the amount required to be retained
in such account such excess monies, including earnings on investments of
monies in the fund, shall be withdrawn from such account and paid into
the board fund.
10. Subject to agreements made with holders or guarantors of
outstanding notes or bonds issued by or for the benefit of the city
after the effective date of this act, the comptroller shall invest the
monies retained in the fund in accordance with law.
11. The limitations imposed upon the city by this section shall be in
addition to any limitations imposed upon the city under the local
finance law. In the event any provisions of the local finance law shall
be inconsistent with the provisions of this section, the provisions of
this section shall prevail. The requirements of this section shall not
apply to any note of the city held by the municipal assistance
corporation for the city of New York to the extent that such corporation
has evidenced its intention not to present such notes for payment during
the fiscal year in which the determination is made provided that such
notes were held by such corporation on June thirtieth, nineteen hundred
seventy-eight or were issued in exchange for or in refunding or renewal
of notes held by such corporation on such date.
12. Notwithstanding any other provision of this section, the city may,
at any time, subject to approval by the comptroller, designate a trust
company or bank having its principal place of business in the state of
New York and having the powers of a trust company in the state of New
York to hold all or any part of the monies in the fund and to administer
and maintain the monies so held in accordance with the applicable
provisions of this section and any agreements made pursuant thereto.
* Terminates July 1, 2035 or ... see § 13
* § 9-b. Limitations on short-term borrowing. 1. The limitations on
short-term borrowing imposed upon the city by this section shall be in
addition to the limitations on short-term borrowing imposed on the city
under the local finance law. In the event any provisions of the local
finance law shall be inconsistent with the provisions of this section,
the provisions of this section shall prevail. For the purposes of this
section the terms "bond anticipation notes", "tax anticipation notes",
"revenue anticipation notes" and "budget notes" shall not mean one or
more of or any of the respective notes held by the municipal assistance
corporation for the city of New York on June thirtieth, nineteen hundred
seventy-eight or any note of the city held by such corporation issued in
exchange for or in refunding or renewal of any such note.
2. a. No tax anticipation notes shall be issued by the city in
anticipation of the collection of taxes or assessments levied for a
fiscal year which would cause the principal amount of such issue of tax
anticipation notes to exceed an amount equal to ninety per cent of the
available tax levy with respect to such issue.
b. Tax anticipation notes and renewals thereof shall mature not later
than the last day of the fiscal year in which they were issued.
3. a. No revenue anticipation note shall be issued by the city in
anticipation of the collection or receipt of revenue in a fiscal year
which would cause the principal amount of revenue anticipation notes
outstanding to exceed ninety per cent of the available revenues for such
fiscal year. For purposes of this subdivision, available revenues shall
be the revenues other than real estate taxes and assessments which have
been estimated in the financial plan to be realized in cash during such
year, less revenues previously collected, other than revenues on deposit
in the RAN debt service account or any special fund established pursuant
to law for the payment of interest and/or principal of revenue
anticipation notes.
b. Each issue of revenue anticipation notes shall be issued only in
anticipation of the receipt of a specific type or types of revenue and
the amount of revenue, the source of revenue and the anticipated date of
payment shall be stated in the proceedings authorizing the issuance of
such notes.
c. Revenue anticipation notes shall mature not later than the last day
of the fiscal year in which they were issued, and may not be renewed or
extended to a date more than ten days after the anticipated date of
receipt of such revenue. No such renewal note shall mature after the
last day of such fiscal year unless the board shall certify that the
revenue against which such renewal note is issued has been properly
accrued and estimated in the financial plan in effect on the date of
issuance of such renewal note; provided that in no event shall any such
renewal notes mature later than one year subsequent to the last day of
the fiscal year during which such revenue anticipation notes were
originally issued.
4. a. No bond anticipation note shall be issued by the city in any
fiscal year which would cause the principal amount of bond anticipation
notes outstanding, together with interest due or to become due thereon,
to exceed fifty per cent of the principal amount of bonds issued by the
city in the twelve months immediately preceding the month in which the
note is to be issued.
b. The proceeds of each bond issue shall be (i) held in trust for the
payment, at maturity, of the principal of and interest on any bond
anticipation notes of the city issued in anticipation of such bonds and
outstanding at the time of the issuance of such bonds, (ii) paid into
the general fund of the city in repayment of any advance made from such
fund pursuant to section 165.10 of the local finance law, and (iii) any
balance shall be expended for the object or purpose for which such bonds
were issued.
c. Bond anticipation notes shall mature not later than one year after
their date of issuance and may be renewed for a period not to exceed two
years, or such longer period as may be permitted for bond anticipation
notes of the state, from the date of original issue.
5. Budget notes issued pursuant to section 29.00 of the local finance
law may only be issued to fund projected expense budget deficits. No
budget notes or renewals thereof, shall mature later than sixty days
prior to the last day of the fiscal year next succeeding the fiscal year
during which such budget notes were originally issued.
6. The city shall issue no obligations which shall be inconsistent
with the financial plan or with the limitations set forth in
subdivisions one through five of this section.
* Terminates July 1, 2035 or ... see § 13
* § 10. Wage freeze. 1. Increases in salary or wages of employees of
the city and employees of covered organizations which have taken effect
since June thirtieth, nineteen hundred seventy-five or which will take
effect after that date pursuant to collective bargaining agreements or
other analogous contracts, now in existence or hereafter entered into,
requiring such salary increases as of July first, nineteen hundred
seventy-five or as of any date thereafter are hereby suspended. All
increased payments for holiday and vacation differentials, shift
differentials, salary adjustments according to plan and step-ups or
increments for employees of the city and employees of covered
organizations which have taken effect since June thirtieth, nineteen
hundred seventy-five or which will take effect after that date pursuant
to collective bargaining agreements or other analogous contracts
requiring such increased payments as of July first, nineteen hundred
seventy-five as of any date thereafter are hereby, in the same manner,
suspended. For the purposes of computing the pension base of retirement
allowances, the suspended salary or wage increases and the suspended
other payments shall not be considered as part of compensation or final
compensation or of annual salary earned or earnable. The suspensions
provided herein shall be effective for the first pay period ending on or
subsequent to September first, nineteen hundred seventy-five and shall
continue until one year thereafter and, to the extent of any
determination of the board that a continuation of such suspensions, to a
date specified by the board, is necessary in order to achieve the
objectives of the financial plan, such suspensions shall be continued to
the date specified by such board, which date shall in no event be later
than the end of the emergency period.
2. This section shall not be applicable to employees of the city or
employees of a covered organization covered by a collective bargaining
agreement or an employee of the city 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 mayor on or before September first, nineteen
hundred seventy-five, or certified by the board after September first,
nineteen hundred seventy-five as being an acceptable and appropriate
contribution toward alleviating the fiscal crisis of the city. The board
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
shall, in whole or in part, be terminated.
3. The provisions of this section shall terminate on July first,
nineteen hundred seventy-eight.
* Terminates July 1, 2035 or ... see § 13
* § 10-a. Covenants, authorizations to agree and remedies. 1. In the
event that after the date on which the provisions of this act become
operative, any notes or bonds are issued by the city prior to July 1,
2027, or any bonds are issued by a state financing agency, the state of
New York hereby authorizes the city and authorizes and requires such
state financing agency to include a pledge and agreement of the state of
New York in any agreement made by the city or such state financing
agency with holders or guarantors of such notes or bonds that the state
will not take any action which will (a) substantially impair the
authority of the board during a control period, as defined in
subdivision twelve of section two of this act as in effect on the date
such notes or bonds are issued (i) to approve, disapprove, or modify any
financial plan or financial plan modification, including the revenue
projections (or any item thereof) contained therein, subject to the
standards set forth in paragraphs a, c, d, e and f of subdivision one of
section eight of this act as in effect on the date such notes or bonds
are issued and paragraph b of such subdivision as in effect from time to
time, (ii) to disapprove a contract of the city or a covered
organization if the performance of such contract would be inconsistent
with the financial plan or to approve or disapprove proposed short-term
or long-term borrowing of the city or a covered organization or any
agreement or other arrangement referred to in subdivision four of
section seven of this act, or (iii) to establish and adopt procedures
with respect to the deposit in and disbursement from the board fund of
city revenues; (b) substantially impair the authority of the board to
review financial plans, financial plan modifications, contracts of the
city or the covered organizations and proposed short-term or long-term
borrowings of the city and the covered organizations; (c) substantially
impair the independent maintenance of a separate fund for the payment of
debt service on bonds and notes of the city; (d) alter the composition
of the board so that the majority of the voting members of the board are
not officials of the state of New York elected in a state-wide election
or appointees of the governor; (e) terminate the existence of the board
prior to the time to be determined in accordance with section thirteen
of this act as in effect on the date such notes or bonds are issued; (f)
substantially modify the requirement that the city's financial
statements be audited by a nationally recognized independent certified
public accounting firm or consortium of firms and that a report on such
audit be furnished to the board; or (g) alter the definition of a
control period set forth in subdivision twelve of section two of this
act, as in effect on the date such notes or bonds are issued, or
substantially alter the authority of the board, as set forth in said
subdivision to reimpose or terminate a control period; provided,
however, that the foregoing pledge and agreement shall be of no further
force and effect if at any time (i) there is on deposit in a separate
trust account with a bank, trust company or other fiduciary sufficient
moneys or direct obligations of the United States or obligations
guaranteed by the United States, the principal of and/or interest on
which will provide moneys to pay punctually when due at maturity or
prior to maturity by redemption, in accordance with their terms, all
principal of and interest on all outstanding notes and bonds of the city
or such state financing agency containing this pledge and agreement and
irrevocable instructions from the city or such state financing agency to
such bank, trust company or other fiduciary for such payment of such
principal and interest with such moneys shall have been given, or (ii)
such notes and bonds, together with interest thereon, have been paid in
full at maturity or have otherwise been refunded, redeemed, defeased, or
discharged; and provided further that the foregoing pledge and agreement
shall be of full force and effect upon its inclusion in any agreement
made by the city or state financing agency with holders or guarantors of
such notes or bonds.
Upon payment for such obligations issued pursuant to this act by the
original and all subsequent holders inclusion of the foregoing covenant
shall be deemed conclusive evidence of valuable consideration received
by the state and city for such covenant and of reliance upon such pledge
and agreement by any such holder. The state hereby grants any such
benefited holder the right to sue the state in a court of competent
jurisdiction and enforce this covenant and agreement and waives all
rights of defense based on sovereign immunity in such an action or suit.
2. Every such bond or note which shall contain the pledge and
agreement referred to in subdivision one above shall be callable for
redemption commencing not later than the eleventh anniversary of its
date of issuance and shall contain on its face a recital to such effect,
together with the terms and conditions under which such obligation may
be redeemed.
3. The finance board of the city is hereby authorized to enter into
agreements and to make covenants with any purchaser, holder or guarantor
of obligations issued by the city or by a state financing agency to
protect and safeguard the security and rights of a purchaser, holder or
guarantor or to protect and safeguard the source of payment of such
obligations or as deemed appropriate by the finance board which
agreements or covenants may contain provisions providing for (a) (i) the
compliance by the city with any of the provisions of this act or of the
New York City Loan Guaranty Act of nineteen hundred seventy-eight,
Public Law 95-339, or, (ii) in any agreements with the guarantor of such
obligations but only in such agreements unless otherwise authorized by
law, the compliance with any of the terms and conditions required by the
secretary of the treasury pursuant to such act, (b) restrictions on the
issuance by the city of its obligations, limitations on the inclusion of
expense items in its capital budgets and financial records, reporting
and disclosure requirements in addition to any such restrictions,
limitations or requirements contained in this act, (c) compliance by the
city with its financial plan as modified from time to time, (d)
conditions that would give rise to an event of default on such
obligations, and (e) remedies available to a purchaser, holder or
guarantor of such obligations, other than acceleration or the required
elimination or reduction of specific municipal expenditures, including
the circumstances, if any, under which a trustee or trustees or a fiscal
agent may be appointed or may act as a representative of holders of
obligations issued by the city in connection with an issue or issues of
obligations of the city and the rights, powers and duties which may be
vested in such trustee, trustees or fiscal agent as such representative.
The state of New York hereby pledges and agrees that it will take no
action that would impair the power of the city to comply with or to
perform any covenant or agreement made pursuant to this subdivision, or
any right or remedy of a purchaser, holder or guarantor to enforce such
covenant or agreement; and the city or a state financing agency is
hereby authorized to include such pledge and agreement in any agreement
made pursuant to this subdivision. Nothing contained in this subdivision
shall preclude the state from authorizing the city to exercise, or the
city from exercising, any power provided by law to seek application of
laws then in effect under the bankruptcy provisions of the United States
constitution or shall preclude the state from validly exercising its
police powers.
4. Notwithstanding any other provision of law, the trustees of any
retirement, pension or annuity fund or system of the state of New York
or of the city of New York are hereby authorized to enter into
commitments to purchase and to purchase notes, bonds or other
obligations of the city of New York or of a state financing agency, the
payment in whole or in part, of interest, principal, or both, is
guaranteed by the secretary of the Treasury of the United States of
America pursuant to the New York City Loan Guarantee Act of 1978, Public
Law 95-339, as presently in effect or hereafter amended or to purchase
other bonds or notes of such city or of a state financing agency prior
to June thirtieth, nineteen hundred eighty-two, or in the case of the
trustees of any retirement, pension or annuity fund or system of the
city of New York, to enter into commitments to purchase such other bonds
or notes of such city or of a state financing agency prior to June
thirtieth, nineteen hundred eighty-two. Such commitments to purchase
shall be binding upon and enforceable against successor trustees of such
retirement, pension or annuity funds or systems of the state of New York
or city of New York.
5. The secretary of the treasury shall have the right to initiate a
proceeding in the supreme court of the state of New York in and for the
county of New York or the court of claims of the state of New York to
obtain a court order or other relief in connection with any agreements
or other transactions entered into by the secretary relative to his
guarantee of the principal, interest, or both of city indebtedness.
6. Notwithstanding any other provision of law to the contrary, the
governor shall have the authority 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 of New York 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 1978, Public Law 95-339, approved by the comptroller
and approved as to form by the attorney general, 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. Nothing in this section contained shall preclude the state from
authorizing the board or the city to exercise, or the board or city from
exercising, any power provided by law to seek application of laws then
in effect under the bankruptcy provisions of the United States
constitution or to preclude the state from a further exercise of its
powers under article eight, section twelve, of the state constitution.
* Terminates July 1, 2035 or § 13
* § 11. Prohibitions; penalties. 1. During a control period, (i) no
officer or employee of the city 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 city or of any of the covered
organizations shall involve the city 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 board unless such
contract, obligation or liability has been so approved or deemed to be
approved as provided in paragraphs e and f of subdivision one of section
seven and unless such contract or obligation or liability is in
compliance with the financial plan as then in effect.
2. No officer or employee of the city or any of the covered
organizations shall take any action in violation of any valid order of
the board 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 for the board 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 board or its agents thereof.
3. In addition to any penalty or liability under other law, any
officer or employee of the city or any of the covered organizations who
shall knowingly and willfully violate subdivision one or two of this
section 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 mayor and
shall, upon conviction, be guilty of a misdemeanor.
4. In the case of a violation of subdivision one or two of this
section by an officer or employee of the city or any of the covered
organizations, the mayor or the chief executive officer of such covered
organization shall immediately report to the board all pertinent facts
together with a statement of the action taken thereon.
* Terminates July 1, 2035 or ... see § 13
* § 12. Indemnification. a. The state shall save harmless and
indemnify members, officers and employees of and representatives to the
board, all of whom shall be deemed officers and employees of the state
for purposes of section seventeen of the public officers law, against
any claim, demand, suit, or judgment arising by reason of any act or
omission to act by such member, officer, employee or representative
occurring in the discharge of his duties and within the scope of his
service on behalf of such board including any claim, demand, suit or
judgment based on allegations that financial loss was sustained by any
person in connection with the acquisition, disposition or holding of
securities or other obligations. In the event of any such claim, demand,
suit or judgment, a member, officer or employee of or representative to
the board shall be saved harmless and indemnified, notwithstanding the
limitations of subdivision one of section seventeen of the public
officers law, unless such individual is found by a final judicial
determination not to have acted, in good faith, for a purpose which he
reasonably believed to be in the best interest of the board or not to
have had reasonable cause to believe that his conduct was lawful.
b. In connection with any such claim, demand, suit, or judgment, any
member, officer or employee of or representative to the board shall be
entitled to representation by private counsel of his choice in any civil
judicial proceeding whenever the attorney general determines based upon
his investigation and review of the facts and circumstances of the case
that representation by the attorney general would be inappropriate. The
attorney general shall notify the individiual in writing of such
determination that the individual is entitled to be represented by
private counsel. The attorney general may require, as a condition to
payment of the fees and expenses of such representative, that
appropriate groups of such individuals be represented by the same
counsel. If the individual or groups of individuals is entitled to
representation by private counsel under the provisions of this section,
the attorney general shall so certify to the comptroller. Reasonable
attorneys fees and litigation expenses shall be paid by the state to
such private counsel from time to time during the pendency of the civil
action or proceeding, subject to certification that the individual is
entitled to representation under the terms and conditions of this
section by the chairman of the board, upon the audit and warrant of the
comptroller. The provisions of this subdivision shall be in addition to
and shall not supplant any indemnification or other benefits heretofore
or hereafter conferred upon members, officers, or employees of and
representatives to the board by section seventeen of the public officers
law, by action of the board or otherwise. The provisions of this
subdivision shall inure only to members, officers and employees of and
representatives to the board, shall not enlarge or diminish the rights
of any other party, and shall not impair, limit or modify the rights and
obligations of any insurer under any policy of insurance.
* Terminates July 1, 2035 or ... see § 13
Termination. This act shall terminate on the later of (a) July
first, two thousand eight or (b) the date (i) when all bonds and notes
containing the pledge and agreement authorized by subdivision one of
section ten-a of this act are refunded, redeemed, discharged or
otherwise defeased, or (ii) when there shall no longer be outstanding
any guarantee by the United States of America or any agency or
instrumentality thereof as to payment of principal of or interest on any
note or bond issued by the city or a state financing agency, whichever
of (i) or (ii) shall occur later.
* Terminates July 1, 2035 or ... see § 13
* § 14. Separability. If any clause, sentence, paragraph, subdivision,
or other part of this act shall for any reason be adjudged by any court
of competent jurisdiction to be unconstitutional or otherwise invalid,
such judgment shall not affect, impair, or invalidate the remainder of
this act, but shall be confined in its operation to the clause,
sentence, paragraph, subdivision or part thereof directly involved in
the controversy in which such judgment shall have been rendered and it
shall be construed to have been the legislative intent to pass this act
without such unconstitutional, or invalid part therein.
* Terminates July 1, 2035 or ... see § 13
* § 15. Court preference. If any section, part or provision of this
act shall be declared unconstitutional or invalid or ineffective by any
court of this state, any appeal of such judgment or order shall have
preference over all other causes in any court of this state. Service
upon the adverse party of a notice of appeal shall stay the effect of
the judgment or order appealed from pending the hearing and
determination of the appeal.
* Terminates July 1, 2035 or ... see § 13