A40002

                STATE OF NEW YORK
        ________________________________________________________________________

                                            2

                                  Extraordinary Session

                   IN ASSEMBLY

                                      July 22, 2004
                                       ___________

        Introduced by COMMITTEE ON RULES -- (at request of the Governor) -- read
          once and referred to the Committee on Education

        AN ACT to amend the education law, the general municipal law and the tax
          law, in relation to providing the opportunity for a sound basic educa-
          tion  and  providing  for  accountability in the context of the public
          education system; and repealing certain provisions  of  the  education
          law,  the  public  authorities law and chapter 795 of the laws of 1967
          amending the education law and  other  laws  relating  to  authorizing
          boards of cooperative educational services to own and construct build-
          ings relating to construction contracts

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1.   Legislative findings. The legislature  hereby  finds  and
     2  declares  that the education of our children is among the most vital and
     3  critical functions of government. The legislature further finds that  in
     4  Campaign  for  Fiscal  Equity v. State, 100 N.Y. 2d 893, 930 (2003), the
     5  court of appeals directed that the state ascertain the  actual  cost  of
     6  providing  a sound basic education in New York city; ensure that reforms
     7  to the current system of financing school funding and  managing  schools
     8  address the shortcomings of the current system by ensuring, as a part of
     9  that  process,  that  every  school  in  New York city has the resources
    10  necessary for providing the opportunity for a sound basic education; and
    11  provide for a system of accountability to measure  whether  the  reforms
    12  actually provide the opportunity for a sound basic education.
    13    The  legislature  further  finds that the New York state commission on
    14  education reform ("commission") was established  pursuant  to  Executive
    15  Order  No. 131 specifically to study and recommend reforms to ensure all
    16  children have the opportunity to  obtain  a  sound  basic  education  in
    17  accordance  with  requirements  of the state constitution and applicable
    18  decisional law. The legislature further finds that consistent  with  its
    19  responsibilities  pursuant  to  this  Executive  Order,  the  commission

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD12222-07-4

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     1  directed that a study be performed on its behalf to ascertain the actual
     2  cost of providing a sound basic education in New  York  city  and  other
     3  school districts across the state.
     4    The  legislature  hereby  finds  that  the actual costs of providing a
     5  sound basic education should properly be determined  using  an  analysis
     6  whereby  expenditures  are examined in school districts that have educa-
     7  tion performance that meets  or  exceeds  expected  performance  levels,
     8  consistent  with  the  study  performed on behalf of the commission. The
     9  legislature further finds that  expected  education  performance  levels
    10  should  be  determined using scores on the fourth grade English Language
    11  Arts and fourth grade Math exams with successful schools  identified  as
    12  having  eighty  percent  of  their students demonstrating proficiency on
    13  such exams over a three-year period, and the five regents exams used for
    14  graduation, consisting of the 281 K-12 school  districts  identified  by
    15  the  state education department as meeting the operational definition of
    16  an adequate education.
    17    The  legislature  further  finds  that  educational  costs  should  be
    18  adjusted  using  those  weightings selected and reflected in the commis-
    19  sion's recommendations for the number of special education students, the
    20  number of students from economically disadvantaged backgrounds  and  the
    21  number  of students with limited English proficiency, with regional cost
    22  differences reflected utilizing the Geographic Cost of Education  Index.
    23  Furthermore, the legislature finds that it is appropriate to incorporate
    24  an  efficiency  factor  by  ranking  the  expenditures of the successful
    25  school districts and using the average expenditures of the lowest  fifty
    26  percent  of  such school districts, consistent with the study  performed
    27  on behalf of the commission.
    28    The legislature further finds that a combination of state,  local  and
    29  federal  funds  should be used to support the costs of providing a sound
    30  basic education in New York city and other school districts  across  the
    31  state, and that funding increases should be phased in over five years to
    32  ensure that school districts have adequate time in which to plan for the
    33  use of additional resources.
    34    The  legislature  further  finds  that  the legislation enacted herein
    35  reforms the current system of  financing  school  funding  and  managing
    36  schools  by  ensuring  that every school has the resources necessary for
    37  providing the opportunity for a sound basic education, and provides  for
    38  a  system of accountability to measure and ensure that the reforms actu-
    39  ally provide the opportunity for a sound basic education.
    40    § 1-a. The education law is amended by adding a new article 25 to read
    41  as follows:
    42                                 ARTICLE 25
    43                    OFFICE OF EDUCATIONAL ACCOUNTABILITY
    44  Section 1300. Office of educational accountability.
    45          1301. Powers and duties of the office  of  educational  account-
    46                  ability.
    47          1302. Comprehensive sound basic education plan.
    48          1303. Identification of poorly performing schools.
    49          1304. Planning  and  accountability  for  school  districts with
    50                  poorly performing schools.
    51          1305. Value added accountability system.
    52    § 1300. Office of educational accountability.   An independent  office
    53  of educational accountability is established to monitor student perform-
    54  ance in the state's school districts. The office shall have responsibil-
    55  ity  for administering the statewide system of accountability for public
    56  elementary and secondary schools in accordance  with  this  article  and

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     1  Title  I  and  monitoring  the  performance  and  improvement  of poorly
     2  performing schools. The director of the office of  educational  account-
     3  ability  shall be appointed by the board of regents with the approval of
     4  the  governor for a term of six years that may be renewed by the regents
     5  with the approval of the governor.   No director shall  serve  for  more
     6  than  two terms.  The director may be removed during a term by the board
     7  of regents with the approval of the governor.
     8    § 1301. Powers and duties of the office of educational accountability.
     9  The office shall have the following powers and duties:
    10    1. Evaluate student performance data and ensure the annual  report  to
    11  the  governor,  the  legislature, the board of regents and the public on
    12  student performance statewide is made in a timely manner.
    13    2.   Establish criteria for annually  identifying  a  list  of  poorly
    14  performing schools.
    15    3. Ensure local school districts report to the public on their student
    16  performance.
    17    4.  Ensure school districts notify parents when a school is identified
    18  as poor performing.
    19    5. Ensure school districts notify parents of their options  under  the
    20  federal  No Child Left Behind Act (school choice and vouchers for tutor-
    21  ing).
    22    5-a. Review and approve the comprehensive sound basic education  plans
    23  from  school  districts with poorly performing schools within sixty days
    24  of receipt of such plan.
    25    6. Review and approve the school improvement  plans  from  the  poorly
    26  performing schools within sixty days of receipt of such plan.
    27    7.  Make  periodic  site visits to poorly performing schools to ensure
    28  that the improvement plans are being implemented on the  proposed  time-
    29  line.
    30    8.  Hold  school  districts  accountable  for spending required by the
    31  school improvement plan.
    32    9. Order districts to take the actions contained in the approved plans
    33  with a set of sanctions for districts that fail to follow through. These
    34  sanctions may include speeding up the timetable for closing  or  re-con-
    35  figuring the school.
    36    10.  Require New York city and school districts with poorly performing
    37  schools to provide a detailed plan for the allocation of resources among
    38  their schools.
    39    11. Develop a value added accountability  system  based  on  grade  by
    40  grade tests required by the federal No Child Left Behind Act.
    41    §  1302.  Comprehensive  sound  basic education plan.   1. Each school
    42  district shall develop a three-year comprehensive sound basic  education
    43  plan. Such plan shall be updated each year. The first such plan shall be
    44  submitted by March first, two thousand five. The first plan shall detail
    45  how  the  district  plans  to  provide  an opportunity for a sound basic
    46  education in all their schools by the end of the first three years.  The
    47  plan shall be developed in cooperation with groups representing parents,
    48  teachers  and administrators from the poorly performing school. The plan
    49  shall consider district needs in providing an opportunity  for  a  sound
    50  basic education.
    51    2.  Each  school  district shall include a resource allocation plan as
    52  part of the comprehensive sound basic education plan.  This  plan  shall
    53  ensure  that  each  school  has  the  educational resources necessary to
    54  provide the opportunity for a sound basic education. The allocation plan
    55  may include allocation of resources in the following areas based on  the

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     1  district  needs  identified  in  the  plan  developed in accordance with
     2  subdivision one of this section:
     3    a. Improvement in quality of teaching and instructional leadership for
     4  schools  including  for  school districts with poorly performing schools
     5  the allocation of teachers among schools and utilizing initiatives  such
     6  as  competitive  pay scales for teachers, additional stipends to attract
     7  qualified teachers for math, science, bilingual education  and  hard  to
     8  staff schools, pay for performance plans and career ladders to encourage
     9  experienced teachers to remain in teaching;
    10    b. Appropriate class sizes;
    11    c. School facilities;
    12    d. Pre-k and early childhood education services;
    13    e. Services for at-risk students;
    14    f.  Services for students with disabilities and English language lear-
    15  ners;
    16    g. Ensuring adequate instrumentalities of learning;
    17    h. Alternative placements for disruptive students;
    18    i. Parental accountability and involvement;
    19    j. Student involvement and accountability; and
    20    k. Longer school day and longer school year.
    21    3. The school district shall submit the completed plan to  the  office
    22  of  educational accountability. If the administrators or teachers do not
    23  agree with the plan approved by the board of education and submitted  to
    24  the  state, they may submit their objections to the state with the plan.
    25  The plan for each school district with a poorly performing school  shall
    26  be reviewed and approved by the office of educational accountability.
    27    §  1303.  Identification  of poorly performing schools.   Each year in
    28  accordance with a schedule determined by the  director,  the  office  of
    29  educational  accountability  shall  review  student performance on state
    30  tests and identify a list of poorly performing schools. The criteria  to
    31  be  used  to  identify  the  poorly  performing schools shall be clearly
    32  defined and based on the number of students  meeting  the  standards  on
    33  state  tests,  the  attendance  rate and dropout rates and the number of
    34  students with serious academic deficiencies.   The office  shall  ensure
    35  that  the  list  includes all schools not providing an opportunity for a
    36  sound basic education and  that  each  school  district  with  a  poorly
    37  performing  school  notifies  each  parent  of  the  students in the low
    38  performing school of this designation.
    39    § 1304. Planning and accountability for school districts  with  poorly
    40  performing  schools.    1.  Plan.  Each  school  district  with a poorly
    41  performing school identified by the office of educational accountability
    42  shall develop a three year improvement plan for each  poorly  performing
    43  school. Such plan shall be submitted within six months of such identifi-
    44  cation  as  a  poorly  performing school. The plan shall be developed in
    45  cooperation with groups representing parents, teachers  and  administra-
    46  tors  from the poorly performing school. Such plan shall be submitted to
    47  the office of educational accountability in accordance with  a  schedule
    48  developed by the office.
    49    a.  Section  one of the plan shall identify the problems in the poorly
    50  performing school. The district  must  show  a  clear  analysis  of  the
    51  school's needs based on the data available to identify the problems.
    52    b. Section two of the plan shall contain specific programs and actions
    53  to be implemented to solve the problems identified in section one of the
    54  plan  and  a  timeline  for  implementation. The specific programs to be
    55  implemented must be on the list of successful programs identified by the
    56  state education department in accordance with subdivision  two  of  this

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     1  section. If the school includes a program not on the list, the plan must
     2  provide reasons why the action will work in their district.
     3    c. In poorly performing schools experiencing a problem with disruptive
     4  students,  the  plan must include creation of alternative placements for
     5  disruptive students  to  improve  the  learning  opportunity  for  other
     6  students.
     7    d. Section three of the plan shall identify the resources necessary to
     8  carry  out  the  plan. The school district shall ensure that each poorly
     9  performing school has the resources necessary to provide an  opportunity
    10  for  a  sound basic education in accordance with the district allocation
    11  plan contained in the comprehensive sound basic education plan.
    12    e. The school district shall submit the completed plan to  the  office
    13  of  educational  accountability  for  approval. If the administrators or
    14  teachers do not agree with the plan approved by the board  of  education
    15  and  submitted  to  the  state,  they may submit their objections to the
    16  state with the plan.
    17    2. Technical  assistance.  The  department  shall  assist  the  school
    18  district  in  developing this plan by identifying cost effective similar
    19  schools with successful student performance, and identifying the differ-
    20  ences in educational programs  between  successful  schools  and  poorly
    21  performing  schools.  In  addition,  the  department  shall  provide the
    22  district with information on the characteristics of cost-effective simi-
    23  lar schools that have successfully improved performance.
    24    3. Sanctions. The office of educational accountability  shall  monitor
    25  implementation of the plan. If at any time after the plan is adopted and
    26  approved,  the  office determines a school is not implementing the plan,
    27  the director shall order the school district to take action to implement
    28  the plan. If the school district fails to act on the  director's  order,
    29  the  director  may  expedite the actions authorized in this subdivision.
    30  After the third year of the plan, the office of educational accountabil-
    31  ity shall determine if the school meets performance expectations. If the
    32  school does not meet performance expectations, the director shall  close
    33  the  school. A new, restructured school shall be opened with a new prin-
    34  cipal and staff in accordance with local conditions. Notwithstanding any
    35  other provision of law to the contrary, failure of a school  to  provide
    36  the  opportunity  for  a sound basic education after three years under a
    37  school improvement plan shall be deemed just cause for dismissal of  the
    38  building  principal.  In addition, parents shall be offered the opportu-
    39  nity to convert the school to a charter school.  The  new  school  shall
    40  develop  a  three  year improvement plan in accordance with the require-
    41  ments contained in this section.
    42    After the third year of the plan, the office of  educational  account-
    43  ability  shall  determine  if  the new school meets performance expecta-
    44  tions. If the  school  fails  to  meet  performance  expectations  after
    45  closure and re-configuration an interim administrator shall be appointed
    46  to manage the school and order the district to make recommended improve-
    47  ments.  The  interim  administrator shall assume the powers of the local
    48  school board and superintendent for  the  designated  school,  including
    49  hiring a principal and staff and ensuring improvements are made.
    50    §  1305. Value added accountability system.  The office of educational
    51  accountability shall develop a  value  added  accountability  system  to
    52  increase the efficiency and effectiveness of school program planning and
    53  implementation.  The  system will track each student's performance based
    54  on assessments that review progress over time.
    55    The system will track  how  effectively  state  and  local  resources,
    56  including  resources identified in the school improvement plans required

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     1  by section thirteen hundred four of this article, are  utilized  at  the
     2  local  school  level  to  enable  state  and  local policymakers to make
     3  better-informed judgments on education  related  policies,  reforms  and
     4  expenditures  each  year.  The  system  will combine school performance,
     5  attendance and dropout data with financial data. In order to  facilitate
     6  the creation of this system, the department shall develop an information
     7  system plan that integrates the databases required for this system.
     8    § 2. Subdivisions 2 and 4 of section 2576 of the education law, subdi-
     9  vision  2 as amended by chapter 65 of the laws of 1972 and subdivision 4
    10  as renumbered by chapter 762 of the laws of 1950, are amended and a  new
    11  subdivision 5-b is added to read as follows:
    12    2.  In  the  city  school districts of Syracuse, Rochester and Yonkers
    13  such estimate shall be filed with the mayor or city manager. Such  offi-
    14  cer  shall  place  such estimate before the board of estimate and appor-
    15  tionment or other similar body at the same time and in the  same  manner
    16  as  estimates  from  city departments or officers are placed before said
    17  board or body, and such estimate shall thereafter be subject to the same
    18  consideration, action and procedure as all  other  estimates  from  city
    19  departments or officers, subject to the limitations provided by subdivi-
    20  sion  five-b  of  this  section.    The said board or body may increase,
    21  diminish or reject any item contained in said estimate, subject  to  the
    22  limitations  provided  by subdivision five-b of this section, except for
    23  fixed charges for which the  city  is  liable.  When  such  estimate  is
    24  adopted, the said board or body shall file it with the common council.
    25    4.  In  a  city which had, according to the federal census of nineteen
    26  hundred forty, a population of four hundred thousand or  more  but  less
    27  than  one  million such estimate shall be filed with the officer author-
    28  ized to receive other department estimates and the same acted on by such
    29  officer and by the council of such city in the same manner and with  the
    30  same  effect  as  other department estimates, subject to the limitations
    31  provided by subdivision five-b of this section.   The  council  is  also
    32  authorized,  in  its discretion, to include in such budget a sum for any
    33  of the purposes enumerated in paragraph c of  subdivision  one  of  this
    34  section,  and  any further amount for such purposes as may be authorized
    35  by a tax election held in such city pursuant to the provisions  of  this
    36  chapter.  After  the adoption of such budget the council shall cause the
    37  amount thereof to be included in the tax and assessment roll of the city
    38  and the same shall be collected in the same manner and at the same  time
    39  as  other  taxes  of the city are collected, and placed to the credit of
    40  the board of education.
    41    5-b. a. For the purposes of this subdivision, the terms:
    42    (i) "city funds" shall mean funds of a city with more than one hundred
    43  twenty-five thousand and less than one million inhabitants derived  from
    44  any  source  except  funds contained within the capital budget and funds
    45  derived from any federal, state or private sources over which  the  city
    46  has no discretion.
    47    (ii)  "city amount" shall mean the total amount of expenditures funded
    48  by city funds for the support of the city school district of a city with
    49  more than one hundred twenty-five thousand and  less  than  one  million
    50  inhabitants,  not  including  city payments for debt service or payments
    51  for pension benefits for employees of such district, as contained within
    52  the budget as adopted by the city of New York.
    53    (iii) "base year" shall mean the fiscal year immediately preceding the
    54  fiscal year for which the budget referred to  in  subparagraph  (ii)  of
    55  this  paragraph  is  adopted. The initial base year shall be fiscal year
    56  ending June thirtieth, two thousand four.

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     1    b. The city amount shall not be less than the city amount appropriated
     2  in the base year as determined at the time of adoption of the budget for
     3  the ensuing fiscal year. Provided,  however,  in  the  event  the  total
     4  amount  of  city  funds relied upon to balance such budget is lower than
     5  the total amount of city funds appropriated in the base year, determined
     6  at  the  time of adoption of such budget, the city amount may be reduced
     7  by up to the same percentage as the overall percentage decrease in  city
     8  funds between the base year and the ensuing fiscal year.
     9    §  3.  The  education  law is amended by adding a new section 215-d to
    10  read as follows:
    11    § 215-d. Annual report by  regents  to  governor  and  legislature  on
    12  student  performance; study of performance standards and assessments. 1.
    13  The board of regents shall prepare and submit to the governor, the pres-
    14  ident pro tem of the senate and the speaker of the  assembly  not  later
    15  than January first, two thousand five and by the first day of January in
    16  each  year  thereafter, a report on student performance in the preceding
    17  school year on required state assessments and the impact of current  and
    18  proposed  future  policies  related  to  the  setting  of state academic
    19  content standards and academic performance  standards  for  purposes  of
    20  state  accountability  on school district finances. The department shall
    21  conduct a public hearing on the proposed  report  and  shall  include  a
    22  summary  of  the  input  received  at  such hearing in the final report.
    23  Following submission of the report, the board of regents and commission-
    24  er shall hold a public meeting with the Governor to discuss the results.
    25    2. The regents shall ensure that any student who is granted  a  public
    26  high  school diploma has demonstrated that he or she is capable of func-
    27  tioning effectively in  society,  including  by  eventually  functioning
    28  competently as a juror, voter and employee.
    29    3.  The  board of regents shall appoint an independent panel to review
    30  the current state academic performance standards  and  regents  examina-
    31  tions and assessments used for graduation purposes, and make recommenda-
    32  tions  to  the  regents and the commissioner on alignment of the regents
    33  examinations and assessments with the state learning standards  and  the
    34  scoring of such assessments, including recommendations on ways to assure
    35  that  scoring is as consistent and understandable to practitioners as is
    36  practicable. Such independent panel shall include representatives of the
    37  education community, including but not limited to parents,  schools  and
    38  school  districts  and  organizations  representing  teachers and school
    39  administrators, institutions of higher education, labor and the business
    40  community.  The department shall provide the panel with necessary  staff
    41  support  and  resources  and, upon request of the panel, shall conduct a
    42  survey of parents, students, teachers,  school  administrators  and  the
    43  labor  and  business  communities for their views on such state academic
    44  performance standards and assessment issues. The panel shall  report  to
    45  the  regents  by  a date prescribed by the regents, which shall be on or
    46  before the date on which the regents  establish  the  passing  score  on
    47  regents  examinations for the two thousand five--two thousand six school
    48  year.
    49    4. The board of regents shall monitor the performance of  students  in
    50  career  and  technical  education  programs  to ascertain if the current
    51  diploma requirements for such students have had  an  adverse  impact  on
    52  enrollment  or  completion  rates  for such programs, and shall consider
    53  adjustments in such diploma requirements to ensure these  students  have
    54  the  opportunity  to  meet the requirements. The regents shall include a
    55  report on the impact of such diploma requirements for career and techni-

        A. 2                                8

     1  cal education students in the annual report required pursuant to  subdi-
     2  vision one of this section.
     3    §  4.  Section  1604  of  the education law is amended by adding a new
     4  subdivision 43 to read as follows:
     5    43. To participate or require its members to participate  in  training
     6  and  continuing  education  programs  pursuant to the provisions of this
     7  subdivision.
     8    (1) Upon taking office for the first time, each sole trustee or voting
     9  member of the  board  of  trustees  shall  participate  in  training  to
    10  acquaint  them  with  the  powers,  functions and duties of school board
    11  members, as well as the powers  of  other  governing  and  administering
    12  authorities  that  affect education including the powers of the board of
    13  regents, commissioner, office  of  educational  accountability  and  the
    14  superintendent  of  schools.  Such  participation  shall be completed no
    15  later than three months from the date on which a  trustee  takes  office
    16  for the first time.
    17    (2)  Each sole trustee or voting member of the board of trustees shall
    18  be required to participate in continuing education programs on an annual
    19  basis as prescribed  by  the  commissioner.  Participation  in  training
    20  pursuant to paragraph one of this subdivision shall satisfy the require-
    21  ments of this paragraph for the first year of a new trustee's term.
    22    (3) Such school board training and continuing education programs shall
    23  be provided by the department.
    24    (4) The commissioner is authorized to promulgate regulations regarding
    25  implementation  of  the  school  board training and continuing education
    26  programs.
    27    (5) The failure of a trustee or member  of  a  board  of  trustees  to
    28  comply  with the training and continuing education requirements mandated
    29  by this subdivision shall constitute cause for removal from office.
    30    § 5. Section 1709 of the education law is  amended  by  adding  a  new
    31  subdivision 43 to read as follows:
    32    43.  To  require  its  voting  members  to participate in training and
    33  continuing education programs pursuant to the provisions of this  subdi-
    34  vision.
    35    (1)  Upon  taking office for the first time, all voting members of the
    36  board of education shall participate in training to acquaint  them  with
    37  the powers, functions and duties of school board members, as well as the
    38  powers  of  other  governing  and  administering authorities that affect
    39  education including the powers of the board  of  regents,  commissioner,
    40  office  of educational accountability and the superintendent of schools.
    41  Such participation shall be completed no later than  three  months  from
    42  the date on which a school board member takes office for the first time.
    43    (2)  Each voting member of the board of education shall be required to
    44  participate in continuing education  programs  on  an  annual  basis  as
    45  prescribed  by  the  commissioner. Participation in training pursuant to
    46  paragraph one of this subdivision shall satisfy the requirements of this
    47  paragraph for the first year of a new member's term.
    48    (3) Such school board training and continuing education programs shall
    49  be provided by the department.
    50    (4) The commissioner is authorized to promulgate regulations regarding
    51  implementation of the school board  training  and  continuing  education
    52  programs.
    53    (5)  The  failure of a member of a board of education of a union free,
    54  central or central high school district to comply with the training  and
    55  continuing  education  requirements  mandated  by this subdivision shall
    56  constitute cause for removal from office.

        A. 2                                9

     1    § 6. Subdivision 1 of section 1903 of the education law, as designated
     2  by chapter 70 of the laws of 2001, is amended to read as follows:
     3    1. The board of education of a central high school district shall have
     4  jurisdiction  over  the  pupils  residing therein who have completed the
     5  work of the sixth grade and shall have the same  powers  and  duties  in
     6  respect  to  the  school therein as a board of education of a union free
     7  school district has, under this chapter, in respect to  the  schools  in
     8  such  district.    Notwithstanding  any  other  provision  of law to the
     9  contrary, for purposes of subdivision forty-three of  section  seventeen
    10  hundred  nine  of  this  title,  a  member  of a board of education of a
    11  central high school district who is also a  trustee  or  member  of  the
    12  board  of  trustees or board of education of a component school district
    13  may fulfill the required school board training and continuing  education
    14  through  the  central  school district or the component school district,
    15  and shall not be required to complete such training or continuing educa-
    16  tion requirement more  than  once  in  any  year.  Except  as  otherwise
    17  provided  in  this  article,  the  provisions  of this chapter as to the
    18  courses of study, the qualifications and employment of teachers and  the
    19  maintenance,  conduct  and  supervision  of public schools in union free
    20  school districts shall apply to a central high school district.
    21    § 7. Section 2503 of the education law is  amended  by  adding  a  new
    22  subdivision 21 to read as follows:
    23    21.  Shall  require  its voting members to participate in training and
    24  continuing education programs pursuant to the provisions of this  subdi-
    25  vision.
    26    (1)  Upon  taking  office  as a trustee for the first time, all voting
    27  members of the board of  education  shall  participate  in  training  to
    28  acquaint  them  with  the  powers,  functions and duties of school board
    29  members, as well as the powers  of  other  governing  and  administering
    30  authorities  that  affect education including the powers of the board of
    31  regents, commissioner, office  of  educational  accountability  and  the
    32  superintendent  of  schools.  Such  participation  shall be completed no
    33  later than three months from the date on which  a  school  board  member
    34  takes office for the first time.
    35    (2)  Each voting member of the board of education shall be required to
    36  participate in continuing education  programs  on  an  annual  basis  as
    37  prescribed  by  the  commissioner. Participation in training pursuant to
    38  paragraph one of this subdivision shall satisfy the requirements of this
    39  paragraph for the first year of a new member's term.
    40    (3) Such school board training and continuing education programs shall
    41  be provided by the department.
    42    (4) The commissioner is authorized to promulgate regulations regarding
    43  implementation of the school board  training  and  continuing  education
    44  programs.
    45    (5)  The  failure of a member of a board of education of a city school
    46  district in a city having a population of less than one hundred  twenty-
    47  five  thousand  inhabitants  to  comply with the training and continuing
    48  education requirements mandated by  this  subdivision  shall  constitute
    49  cause for removal from office.
    50    §  8.  Section  2554  of  the education law is amended by adding a new
    51  subdivision 28 to read as follows:
    52    28. To require its voting  members  to  participate  in  training  and
    53  continuing  education programs pursuant to the provisions of this subdi-
    54  vision.
    55    (1) Upon taking office for the first time, all voting members  of  the
    56  board  of  education shall participate in training to acquaint them with

        A. 2                               10

     1  the powers, functions and duties of school board members, as well as the
     2  powers of other governing  and  administering  authorities  that  affect
     3  education  including  the  powers of the board of regents, commissioner,
     4  office  of educational accountability and the superintendent of schools.
     5  Such participation shall be completed no later than  three  months  from
     6  the date on which a school board member takes office for the first time.
     7    (2)  Each voting member of the board of education shall be required to
     8  participate in continuing education  programs  on  an  annual  basis  as
     9  prescribed  by  the  commissioner. Participation in training pursuant to
    10  paragraph one of this subdivision shall satisfy the requirements of this
    11  paragraph for the first year of a new member's term.
    12    (3) Such school board training and continuing education programs shall
    13  be provided by the department.
    14    (4) The commissioner is authorized to promulgate regulations regarding
    15  implementation of the school board  training  and  continuing  education
    16  programs.
    17    (5)  The  failure of a member of a board of education of a city school
    18  district with less than one  million  inhabitants  to  comply  with  the
    19  training and continuing education requirements mandated by this subdivi-
    20  sion shall constitute cause for removal from office.
    21    §  9.  Section  2590-b of the education law is amended by adding a new
    22  subdivision 1-a to read as follows:
    23    1-a. It shall be the duty of the members of the board of education  of
    24  the  city  school district of the city of New York, other than the chan-
    25  cellor, to participate in training  and  continuing  education  programs
    26  pursuant to the provisions of this subdivision.
    27    (1)  Members  of  the  board  of education, other than the chancellor,
    28  shall participate in training to acquaint them with  the  powers,  func-
    29  tions and duties of school board members, as well as the powers of other
    30  governing  and administering authorities that affect education including
    31  the powers of the board of regents, commissioner, office of  educational
    32  accountability,  city  board,  chancellor and community superintendents.
    33  Such participation shall be completed no later than  three  months  from
    34  the  date on which a community council member takes office for the first
    35  time.
    36    (2) Each member of the board of education, other than the  chancellor,
    37  shall  be required to participate in continuing education programs on an
    38  annual basis as defined by the commissioner.  Participation in  training
    39  pursuant  to  paragraph one of this subdivision by a member of the board
    40  of education who takes office for the first  time  shall  be  deemed  to
    41  satisfy  the requirements of this subdivision for the first year of such
    42  member's term.
    43    (3) Such training and continuing education programs shall be  provided
    44  by the department.
    45    (4) The commissioner is authorized to promulgate regulations regarding
    46  implementation  of  the  training and continuing education programs. Any
    47  such regulations shall be developed after consultation with the chancel-
    48  lor.
    49    (5) Such training and continuing education programs shall  be  offered
    50  on  an  annual basis or more frequently, as needed, to enable members of
    51  the board of education to comply with this subdivision.
    52    (6) Failure of members of the board of education to  comply  with  the
    53  training and continuing education requirements mandated by this subdivi-
    54  sion shall constitute cause for removal from office.

        A. 2                               11

     1    §  10. Paragraph (b) of subdivision 1 of section 3012 of the education
     2  law, as amended by chapter 442 of the laws of 1980, is amended and a new
     3  subdivision 4 is added to read as follows:
     4    (b)  Principals,  administrators, supervisors and all other members of
     5  the supervising staff  of  school  districts,  including  common  school
     6  districts  and/or  school districts employing fewer than eight teachers,
     7  other than city school districts, who are appointed prior  to  September
     8  first,  two thousand four, shall be appointed by the board of education,
     9  or the trustees of a common school district, upon the recommendation  of
    10  the  superintendent of schools for a probationary period of three years.
    11  The service of a person appointed  to  any  of  such  positions  may  be
    12  discontinued at any time during the probationary period on the recommen-
    13  dation of the superintendent of schools, by a majority vote of the board
    14  of education or the trustees of a common school district.
    15    4.  Principals,  administrators,  supervisors and all other members of
    16  the supervising staff of school districts who are appointed on or  after
    17  September  first,  two thousand four, shall be appointed by the board of
    18  education, or the trustees of a common school district, upon the  recom-
    19  mendation  of  the  superintendent  of  schools,  to serve pursuant to a
    20  contract of employment. Such contract shall be for a term  of  not  less
    21  than  three  and  not more than five years, and shall contain such other
    22  terms as shall be mutually acceptable to the parties and are  consistent
    23  with  any  applicable collective bargaining agreements and this subdivi-
    24  sion, including but not limited to, procedures for termination by either
    25  party prior to the expiration of the term of such contract.  During  the
    26  first  three  years  of the employee's initial contract for a particular
    27  position on the supervising staff, the service of such employee  may  be
    28  discontinued  at any time on the recommendation of the superintendent of
    29  schools, by a majority vote of the board of education or the trustees of
    30  a common school district.  Thereafter, any such termination by the trus-
    31  tees or board of education during the term of the contract shall be  for
    32  cause,  upon notice and an opportunity for a hearing pursuant to section
    33  three thousand twenty-a of this article or, for members of the supervis-
    34  ing staff who are represented by a collective bargaining unit,  pursuant
    35  to  a  collectively  negotiated  expedited  disciplinary procedure. Such
    36  contracts may include pay for performance  plans  using  a  value  added
    37  assessment system of student performance.
    38    §  11.  Subdivision 1 of section 3014 of the education law, as amended
    39  by chapter 551 of the laws of 1976, is amended and a new  subdivision  3
    40  is added to read as follows:
    41    1. [Administrative assistants, supervisors, teachers] Teachers and all
    42  other  members  of  the teaching [and supervising] staff of the board of
    43  cooperative educational services, and all  members  of  the  supervising
    44  staff of the board of cooperative educational services who are appointed
    45  prior  to  September  first,  two thousand four, shall be appointed by a
    46  majority vote of the board of cooperative educational services upon  the
    47  recommendation  of  the  district superintendent of schools for a proba-
    48  tionary period of not to exceed three years; provided, however, that  in
    49  the  case  of  a  teacher  who  has been appointed on tenure in a school
    50  district within the state, the board of cooperative educational services
    51  where currently employed, or another board  of  cooperative  educational
    52  services,  and  who  was  not dismissed from such district or board as a
    53  result of charges brought pursuant to subdivision one of  section  three
    54  thousand  twenty-a  of  this  chapter, the probationary period shall not
    55  exceed two years.  Services of a person so appointed to any  such  posi-
    56  tions  may  be discontinued at any time during such probationary period,

        A. 2                               12

     1  upon the recommendation of the district superintendent,  by  a  majority
     2  vote of the board of cooperative educational services.
     3    3.  Administrators, supervisors and all other members of the supervis-
     4  ing  staff  of  boards  of  cooperative  educational  services  who  are
     5  appointed  on  or  after  September  first,  two thousand four, shall be
     6  appointed by the board of cooperative  educational  services,  upon  the
     7  recommendation  of  the  district  superintendent  of  schools, to serve
     8  pursuant to a contract of employment. Such contract shall be for a  term
     9  of  not  less than three and not more than five years, and shall contain
    10  such other terms as shall be mutually acceptable to the parties and  are
    11  consistent with any applicable collective bargaining agreements and this
    12  subdivision, including but not limited to, procedures for termination by
    13  either  party  prior  to  the  expiration  of the term of such contract.
    14  During the first three years of the employee's initial  contract  for  a
    15  particular  position  on  the  supervising  staff,  the  service of such
    16  employee may be discontinued at any time on the  recommendation  of  the
    17  district  superintendent  of schools, by a majority vote of the board of
    18  cooperative educational services. Thereafter, any  such  termination  by
    19  the  board  of  cooperative  educational services during the term of the
    20  contract shall be for cause, upon notice and an opportunity for a  hear-
    21  ing  pursuant to section three thousand twenty-a of this article or, for
    22  members of the supervising staff who are  represented  by  a  collective
    23  bargaining  unit, pursuant to a collectively negotiated expedited disci-
    24  plinary procedure. Such contracts may include pay for performance  plans
    25  using a value added assessment system of student performance.
    26    §  12. Paragraph (b) of subdivision 1 of section 2509 of the education
    27  law, as amended by chapter 468 of the laws of 1975, is amended and a new
    28  subdivision 8 is added to read as follows:
    29    (b) Administrators, directors, supervisors, principals and  all  other
    30  members  of the supervising staff, except associate, assistant and other
    31  superintendents, authorized by section twenty-five hundred three of this
    32  article, who are appointed prior to September first, two thousand  four,
    33  shall be appointed by the board of education, upon the recommendation of
    34  the  superintendent of schools for a probationary period of three years.
    35  The service of a person appointed  to  any  of  such  positions  may  be
    36  discontinued at any time during the probationary period on the recommen-
    37  dation of the superintendent of schools, by a majority vote of the board
    38  of education.
    39    8.  Principals,  administrators,  supervisors and all other members of
    40  the supervising staff of school districts who are appointed on or  after
    41  September  first,  two  thousand  four,  except associate, assistant and
    42  other superintendents, shall be appointed by the board of education of a
    43  city school district, upon the recommendation of the  superintendent  of
    44  schools,  to  serve  pursuant to a contract of employment. Such contract
    45  shall be for a term of not less than three and not more than five years,
    46  and shall contain such other terms as shall be  mutually  acceptable  to
    47  the parties and are consistent with any applicable collective bargaining
    48  agreements  and  this  subdivision, including but not limited to, proce-
    49  dures for termination by either party prior to  the  expiration  of  the
    50  term  of  such  contract. During the first three years of the employee's
    51  initial contract for a particular position on the supervising staff, the
    52  service of such employee may be discontinued at any time on  the  recom-
    53  mendation  of  the  superintendent of schools, by a majority vote of the
    54  board of education or the trustees of a common school  district.  There-
    55  after, any such termination by the trustees or board of education during
    56  the term of the contract shall be for cause, upon notice and an opportu-

        A. 2                               13

     1  nity  for  a hearing pursuant to section three thousand twenty-a of this
     2  chapter or, for members of the supervising staff who are represented  by
     3  a  collective  bargaining  unit,  pursuant  to a collectively negotiated
     4  expedited  disciplinary  procedure.  Such  contracts may include pay for
     5  performance plans using a  value  added  assessment  system  of  student
     6  performance.
     7    §  13. Paragraph (b) of subdivision 1 of section 2573 of the education
     8  law, as amended by chapter 468 of the laws of 1975, is amended and a new
     9  subdivision 18 is added to read as follows:
    10    (b) Administrators, directors, supervisors, principals and  all  other
    11  members of the supervising staff, except executive directors, associate,
    12  assistant, district and community superintendents and examiners, author-
    13  ized  by section twenty-five hundred fifty-four of this article, who are
    14  appointed  prior  to  September  first,  two  thousand  four,  shall  be
    15  appointed  by  the  board  of  education, upon the recommendation of the
    16  superintendent or chancellor of schools, for a  probationary  period  of
    17  three  years. The service of a person appointed to any of such positions
    18  may be discontinued at any time during the probationary  period  on  the
    19  recommendation  of  the superintendent of schools, by a majority vote of
    20  the board of education.
    21    18. Principals, administrators, directors, supervisors and  all  other
    22  members  of  the  supervising  staff  of  city  school districts who are
    23  appointed on or after September first, two thousand four, except  execu-
    24  tive directors, associate, assistant, district and community superinten-
    25  dents,  authorized  by  section  twenty-five  hundred fifty-four of this
    26  article, shall be appointed by the board of education, upon  the  recom-
    27  mendation  of  the  superintendent  of  schools,  to serve pursuant to a
    28  contract of employment. Such contract shall be for a term  of  not  less
    29  than  three  and  not more than five years, and shall contain such other
    30  terms as shall be mutually acceptable to the parties and are  consistent
    31  with  any  applicable collective bargaining agreements and this subdivi-
    32  sion, including but not limited to, procedures for termination by either
    33  party prior to the expiration of the term of such contract.  During  the
    34  first  three  years  of the employee's initial contract for a particular
    35  position on the supervising staff, the service of such employee  may  be
    36  discontinued  at any time on the recommendation of the superintendent of
    37  schools, by a majority vote of the board of education or the trustees of
    38  a common school district.  Thereafter, any such termination by the trus-
    39  tees or board of education during the term of the contract shall be  for
    40  cause,  upon notice and an opportunity for a hearing pursuant to section
    41  three thousand twenty-a of this chapter or, for members of the supervis-
    42  ing staff who are represented by a collective bargaining unit,  pursuant
    43  to a collectively negotiated expedited disciplinary procedure, or, where
    44  applicable, pursuant to the provisions of subdivisions three and four of
    45  section  three  thousand  twenty  of  this  chapter.  Such contracts may
    46  include pay for performance plans using a value added assessment  system
    47  of student performance.
    48    §  14.  Section 3004 of the education law is amended by adding two new
    49  subdivisions 4 and 5 to read as follows:
    50    4. a. The commissioner shall adopt regulations to  establish  alterna-
    51  tive certification procedures for the issuance of teacher's and adminis-
    52  trator's  certificates to candidates who do not meet all the educational
    53  requirements for a certificate but whose training and experience are the
    54  substantial equivalent of such requirements and qualify such persons for
    55  the duties of a teacher or school administrator. For  purposes  of  this
    56  section,  any  person  making  application for alternative certification

        A. 2                               14

     1  shall be considered to have the substantial equivalent of any  education
     2  requirement  if  he or she has earned any post-baccalaureate degree in a
     3  degree field related to the certification area for which he or she seeks
     4  a  teacher's  certificate,  or if he or she has attained a baccalaureate
     5  degree in a degree field related to the certification area for which  he
     6  or  she  seeks  a  teacher's  certificate and has at least five years of
     7  documented satisfactory experience in a field  related  to  the  certif-
     8  ication  area  for which he or she seeks a teacher's certificate.  Indi-
     9  viduals seeking alternative certification  pursuant  to  this  paragraph
    10  shall  be  required  to  take and pass all the examinations required for
    11  certification within two years of the date they are employed by a  board
    12  of education or board of cooperative educational services as a certified
    13  employee.
    14    b. The commissioner shall also adopt regulations to provide for alter-
    15  native  certification procedures for the issuance of an initial teaching
    16  certificate to candidates who have attained a baccalaureate  degree  but
    17  who do not meet all the educational requirements for an initial teaching
    18  certificate.  For purposes of this section, a person shall be considered
    19  to have the substantial equivalent of any education requirement for  the
    20  receipt  of  an initial teaching certificate if he or she has attained a
    21  baccalaureate degree and has achieved a passing grade on required  state
    22  exams  for the receipt of an initial teaching certificate, provided that
    23  any person receiving an initial certificate pursuant to  this  paragraph
    24  shall  have  two  years from the date they received such initial certif-
    25  ication to achieve a passing grade on any required exam related to peda-
    26  gogic methods.
    27    c. School districts  hiring  teachers  receiving  alternative  certif-
    28  ication  shall include in their comprehensive sound basic education plan
    29  a section describing the pre-service and in-service  training  including
    30  mentoring  that  will  be  provided to individuals receiving alternative
    31  certification pursuant to this  section,  provided  that  nothing  shall
    32  prohibit  the school district from providing such training through their
    33  own professional development program or by contract with another entity.
    34    5. The commissioner  shall  promulgate  regulations  to  require  that
    35  school  district  administrators  and  supervisors  receive time-limited
    36  initial and professional teaching certificates and complete one  hundred
    37  seventy-five  hours  of  continuing  education  to maintain such certif-
    38  icates.
    39    § 15. Subdivision 1 of section 101 of the general  municipal  law,  as
    40  amended  by  chapter  572  of  the  laws  of 1964, is amended to read as
    41  follows:
    42    1. Every officer, board or agency of a political subdivision or of any
    43  district therein, other than a school district or board  of  cooperative
    44  educational  services  or  a city contracting on behalf of a city school
    45  district, charged with the duty of preparing specifications or  awarding
    46  or  entering  into  contracts  for  the  erection,  construction, recon-
    47  struction or alteration of buildings, when the entire cost of such  work
    48  shall  exceed  fifty thousand dollars, shall prepare separate specifica-
    49  tions for the following three subdivisions of the work to be performed:
    50    a. Plumbing and gas fitting;
    51    b. Steam heating, hot water heating, ventilating and air  conditioning
    52  apparatus; and
    53    c. Electric wiring and standard illuminating fixtures.
    54    §  16.  Section  11  of  chapter 795 of the laws of 1967, amending the
    55  education law and other laws relating to authorizing boards  of  cooper-
    56  ative educational services to own and construct buildings, is REPEALED.

        A. 2                               15

     1    §  17.  Subdivision 11 of section 407-a of the education law, as added
     2  by chapter 737 of the laws of 1988, is amended to read as follows:
     3    11. Any contract undertaken or financed by the dormitory authority for
     4  any  construction, reconstruction, rehabilitation or improvement for any
     5  special  act  school  district  shall  comply  with  the  provisions  of
     6  [sections  one hundred one and] section one hundred three of the general
     7  municipal law.
     8    § 18. Subdivisions 1 and 2 of section 458 of  the  education  law  are
     9  REPEALED.
    10    § 19. Subdivision 3 of section 458 of the education law, as amended by
    11  chapter  888  of the laws of 1970, paragraph a as amended by chapter 900
    12  of the laws of 1973, is amended to read as follows:
    13    [3. a.] 1. In addition to other bond or bonds, if any, required by law
    14  for the completion of the school portion of a combined occupancy  struc-
    15  ture,  or  in the absence of any such requirement, the fund shall never-
    16  theless require, prior to the approval of any lease or  other  agreement
    17  providing   for  the  construction,  reconstruction,  rehabilitation  or
    18  improvement of any combined occupancy structure, that the developer,  if
    19  other  than  the New York city housing authority, or general contractor,
    20  furnish a bond guaranteeing prompt payment of moneys due to all  persons
    21  furnishing  labor or materials to or for the person furnishing said bond
    22  or to his or her subcontractors in the prosecution of  the  entire  work
    23  provided for in such lease or other agreement. Whenever the developer is
    24  the  New  York  city  housing  authority,  it  shall require each of its
    25  contractors to furnish such  bonds  to  said  authority  and  fund  with
    26  respect  to  the  work  to  be  performed and materials supplied by such
    27  contractor, and no separate or other payment bond shall be  required  to
    28  be  furnished  to  the  fund.  In those instances where the developer or
    29  general contractor is an agency of the state or a public-benefit  corpo-
    30  ration created by an act of the state legislature and in instances where
    31  said  developer or general contractor or the guarantor of payment of the
    32  construction costs of the non-school portion of the combined  "occupancy
    33  structure"  is  a public utility corporation or a bank, trust company or
    34  savings bank as defined in section two of the banking law, or a national
    35  bank having its office and principal place of business in this state, or
    36  a subsidiary of such a bank or trust company of which  at  least  eighty
    37  (80%)  percent  of  whose  stock  is  owned by it, the said developer or
    38  general contractor shall only be required to furnish said  payment  bond
    39  with  respect to the school portion of the combined occupancy structure.
    40  In such instances, the said payment bond shall not be  required  by  the
    41  fund  with  respect  to the non-school portion of the combined occupancy
    42  structure, but, in lieu thereof, such fund shall  require  said  agency,
    43  public benefit corporation, public utility corporation or banking insti-
    44  tution,  as  the  case  may  be to guarantee payment of all construction
    45  costs with respect to the non-school portion of the  combined  occupancy
    46  structure.
    47    [b.] 2. A copy of such payment bond shall be kept in the office of the
    48  chairman  of the fund and a copy shall also be kept in the office of the
    49  board of education; such copies shall be open to public inspection.
    50    [c.] 3. Every person who has furnished labor or material,  to  or  for
    51  the  developer  or  contractor furnishing such payment bond or to his or
    52  her subcontractors in the prosecution of the work provided  for  in  the
    53  lease  or  other  agreement for which said bond is furnished and who has
    54  not been paid in full therefor before the  expiration  of  a  period  of
    55  ninety  days  after the day on which the last of the labor was performed
    56  or material was furnished by him or her for which  the  claim  is  made,

        A. 2                               16

     1  shall  have the right to sue on such payment bond in his or her own name
     2  for the amount, or the balance thereof, unpaid at the time of  commence-
     3  ment  of  the  action;  provided, however, that a person having a direct
     4  contractual  relationship  with  a  subcontractor  of  the  developer or
     5  contractor furnishing the payment bond but no  contractual  relationship
     6  express  or  implied  with such developer or contractor shall not have a
     7  right of action upon the bond unless he or she shall have given  written
     8  notice to such developer or contractor furnishing the bond within ninety
     9  days  from  the date on which the last of the labor was performed or the
    10  last of the material was furnished, for which his or her claim is  made,
    11  stating with substantial accuracy the amount claimed and the name of the
    12  party  to  whom  the  material  was  furnished or for whom the labor was
    13  performed. The notice shall be served by delivering the same  personally
    14  to  the  developer  or contractor furnishing said bond or by mailing the
    15  same by registered mail, postage prepaid, in an  envelope  addressed  to
    16  such  developer  or contractor at any place where he or she maintains an
    17  office or conducts his or her business or at his or her residence.
    18    § 20. Subdivisions 1 and 2 of section 482 of  the  education  law  are
    19  REPEALED.
    20    §  21.  Subdivision 3 of section 482 of the education law, as added by
    21  chapter 931 of the laws of 1971, is amended to read as follows:
    22    [3. a.] 1. In addition to other bond or bonds, if any, required by law
    23  for the completion of the school portion of a combined occupancy  struc-
    24  ture,  or  in the absence of any such requirement, the fund shall never-
    25  theless require, prior to the approval of any lease or  other  agreement
    26  providing   for  the  construction,  reconstruction,  rehabilitation  or
    27  improvement of any combined occupancy structure, that the developer,  if
    28  other  than  the  Yonkers city housing authority, or general contractor,
    29  furnish a bond guaranteeing prompt payment of moneys due to all  persons
    30  furnishing  labor or materials to or for the person furnishing said bond
    31  or to his subcontractors in the prosecution of the entire work  provided
    32  for  in  such  lease  or  other agreement. Whenever the developer is the
    33  Yonkers city housing authority, it shall require each of its contractors
    34  to furnish such bond to said authority and fund with respect to the work
    35  to be performed and materials supplied by such contractor, and no  sepa-
    36  rate  or  other  payment  bond  shall be required to be furnished to the
    37  fund.
    38    [b.] 2. A copy of such payment bond shall be kept in the office of the
    39  chairman of the fund and a copy shall also be kept in the office of  the
    40  board of education; such copies shall be open to public inspection.
    41    [c.]  3.  Every  person who has furnished labor or material, to or for
    42  the developer  or  general  contractor  or  contractor  furnishing  such
    43  payment  bond  or to his or her subcontractors in the prosecution of the
    44  work provided for in the lease or other agreement for which the bond  is
    45  furnished  and who has not been paid in full therefor before the expira-
    46  tion of a period of ninety days after the day on which the last  of  the
    47  labor  was  performed  or material was furnished by him or her for which
    48  the claim is made, shall have the right to sue on such payment  bond  in
    49  his  or  her  own name for the amount, or the balance thereof, unpaid at
    50  the time of commencement of the action; provided, however, that a person
    51  having a direct contractual relationship with  a  subcontractor  of  the
    52  developer  or  contractor furnishing the payment bond but no contractual
    53  relationship express or implied with such developer or contractor  shall
    54  not  have  a  right  of action upon the bond unless he or she shall have
    55  given written notice to such developer or contractor furnishing the bond
    56  within ninety days from the date on which the  last  of  the  labor  was

        A. 2                               17

     1  performed  or  the  last of the material was furnished, for which his or
     2  her claim is made, stating with substantial accuracy the amount  claimed
     3  and the name of the party to whom the material was furnished or for whom
     4  the  labor  was  performed. The notice shall be served by delivering the
     5  same personally to the developer or contractor furnishing said  bond  or
     6  by  mailing the same by registered mail, postage prepaid, in an envelope
     7  addressed to such developer or contractor at any place where he  or  she
     8  maintains  an  office  or  conducts his or her business or at his or her
     9  residence.
    10    § 22. Paragraph b of subdivision 1 of section 1734 and subdivisions  1
    11  and 3 of section 1735 of the public authorities law are REPEALED.
    12    §  23.  Subdivision 2 of section 2502 of the education law, as amended
    13  by chapter 698 of the laws of 1989, is amended to read as follows:
    14    2. Each board of education  shall  consist  of  five,  seven  or  nine
    15  members,  to be known as members of the board of education.  In the city
    16  of Albany, such board shall consist of seven voting members; and in  the
    17  city  of  Rensselaer, such board shall consist of five members; subject,
    18  however, to any increase or decrease of the number of voting members  of
    19  such  board  as  provided  pursuant  to the provisions of paragraph a of
    20  subdivision four of this section.  [Members] Notwithstanding  any  other
    21  provision  of  law  to the contrary, in the city of Albany the mayor, or
    22  his designee, shall serve as an additional ex officio non-voting  member
    23  of  the board of education, provided that the provisions of subdivisions
    24  three, four, six, seven, eight and nine of this section shall not  apply
    25  to  such  ex  officio position and such position shall not be counted in
    26  determining a quorum for the transaction of business.    Voting  members
    27  of  such  board shall be elected by the qualified voters at large of the
    28  school district at annual school  elections,  under  the  provisions  of
    29  article  fifty-three  of this chapter except in the city school district
    30  of the city of Albany; provided, however, each board  of  education  may
    31  upon  its  own  motion, and shall upon a written petition, subscribed by
    32  not less than five hundred qualified voters of the district, cause to be
    33  submitted at the annual school election a proposition to  consider  each
    34  vacancy upon the board of education a separate specific office requiring
    35  a  separate  petition to nominate a candidate to each separate office in
    36  accordance with the provisions of article fifty-three of this chapter.
    37    § 24. Section 2552 of the education law, as amended by chapter 138  of
    38  the laws of 1974, is amended to read as follows:
    39    § 2552. Board  of education.  The board of education of each such city
    40  school district is hereby continued. The  educational  affairs  in  each
    41  such  city  school  district  shall  be under the general management and
    42  control of a board of education to consist of not less  than  three  and
    43  not  more  than  [nine]  eleven  members,  to  be  chosen as hereinafter
    44  provided, and to be known as members of the board of  education,  except
    45  that  the  board of education of the city school district of the city of
    46  New York shall be constituted as provided in article fifty-two-A of this
    47  chapter.  The number of members on the board of education of  each  such
    48  city school district shall continue to be as follows:
    49    a. City school district of the city of Buffalo: [nine] eleven members,
    50  two of which shall be appointed by the mayor.
    51    b.  City  school  district  of  the  city  of  Rochester: [seven] nine
    52  members, two of which shall be appointed by the mayor.
    53    c. City school district of the city of Syracuse: [seven] nine members,
    54  two of which shall be appointed by the mayor.
    55    d. City school district of the city of Yonkers: nine members.

        A. 2                               18

     1    § 25. Section 2553 of the education law is amended  by  adding  a  new
     2  subdivision 3-a to read as follows:
     3    3-a.  In the city school districts of the cities of Buffalo, Rochester
     4  and Syracuse, the mayors of such cities shall appoint two  residents  to
     5  the  board  of  education. Each appointee shall serve for a term of four
     6  years and may be removed by the mayor at any time during their term.
     7    § 26. Subdivision 32 of section 305 of the education law, as added  by
     8  section  1  of  part  H of chapter 83 of the laws of 2002, is amended to
     9  read as follows:
    10    32. a. On or before June first, two thousand three,  the  commissioner
    11  shall  complete a review of all applications, plans and reports required
    12  of school districts or boards of cooperative educational services by the
    13  department. This review shall be undertaken with a focus on streamlining
    14  all programmatic reporting requirements with the aim of  eliminating  or
    15  reducing  excess  reporting  requirements  and to determine the need for
    16  continued annual submission of such documents. Upon completion  of  such
    17  review,  the commissioner shall submit his or her findings to the direc-
    18  tor of the budget, the chair of the assembly ways  and  means  committee
    19  and the chair of the senate finance committee.
    20    b.  The  commissioner  shall, to the extent practicable and consistent
    21  with federal and state law, eliminate or streamline programmatic report-
    22  ing, planning and application requirements imposed on  school  districts
    23  and boards of cooperative educational services, in order to eliminate or
    24  minimize  the production of reports, applications and plans that contain
    25  duplicative information.  The  commissioner  shall  require  all  school
    26  districts and boards of cooperative educational services to compress all
    27  districtwide planning requirements into a single districtwide comprehen-
    28  sive plan, which at a minimum shall include the components prescribed by
    29  the  commissioner,  including  but not limited to the districtwide long-
    30  range capital facilities plan, and applicable current  federal  require-
    31  ments.  The  commissioner  shall  also  require all school districts and
    32  boards of cooperative educational  services  to  compress  all  building
    33  level  planning  requirements into a single building level comprehensive
    34  plan, which at a minimum shall include the components prescribed by  the
    35  commissioner,  and  applicable current federal requirements. It shall be
    36  the duty of the trustees or board of education of every school  district
    37  and of the chancellor and each community district educational council in
    38  the  city  school district of the city of New York and of every board of
    39  cooperative educational services to assure that all  components  of  the
    40  districtwide  comprehensive  plan  and each building level comprehensive
    41  plan are as fully integrated and consistent  as  practicable,  and  that
    42  such  plans  are  continuously  reviewed,  reflect  ongoing  analyses of
    43  current teaching and learning data, and are updated on at least an annu-
    44  al basis. Notwithstanding any other provision of law, rule or regulation
    45  to the contrary, any separate plan requirements imposed under this chap-
    46  ter or any rule or regulation shall be deemed to be fulfilled by  inclu-
    47  sion  of  such  plan in the comprehensive districtwide or building level
    48  plan, provided that all required information is included in the applica-
    49  ble comprehensive plan.
    50    c.  The commissioner shall require the trustees or board of  education
    51  of  every school district and the chancellor and each community district
    52  educational council in the city school district of the city of New  York
    53  and  every  board  of  cooperative  educational  services  to  make  its
    54  districtwide comprehensive plan and each  building  level  comprehensive
    55  plan  available  to the public, except where such plans contain informa-
    56  tion that is confidential and not subject to disclosure under  state  or

        A. 2                               19

     1  federal  law.  Notwithstanding any other provision of law, rule or regu-
     2  lation to the contrary, any school  district  or  board  of  cooperative
     3  educational  services  that  makes its comprehensive districtwide and/or
     4  building  level  plans publicly available electronically through posting
     5  on its website shall be deemed to have filed such plans with the depart-
     6  ment as of the date of posting and shall not be required  to  separately
     7  report  the  information  contained  in  such  plans  to the department,
     8  provided that such district or board of cooperative educational services
     9  reports such posting to the department, with the web  address  at  which
    10  such  plans  are  available, in the manner prescribed by the department,
    11  and provided further that nothing herein shall preclude  the  department
    12  from  requiring the submission of additional information where it deter-
    13  mines that the information in the comprehensive plans is not current  or
    14  complete  or  otherwise  sufficient  to  meet  statutory  or  regulatory
    15  requirements.
    16    § 27. Section 3020 of the education law is amended  by  adding  a  new
    17  subdivision 5 to read as follows:
    18    5.  Notwithstanding  any inconsistent provision of law, when a tenured
    19  teacher receives an evaluation from the school district which  documents
    20  pedagogical  incompetence,  the  district shall take the following steps
    21  prior to bringing charges under section three thousand twenty-a of  this
    22  article.  The  district  shall develop a ninety day plan in consultation
    23  with the teacher and his or her collective bargaining unit to  remediate
    24  the problem. If after the remedial plan is completed, the tenured teach-
    25  er's performance is still unsatisfactory as determined through an obser-
    26  vation  and  written  evaluation  conducted  following completion of the
    27  ninety day remedial plan, the district may file charges  of  pedagogical
    28  incompetence  against  the  teacher  and  use  the  expedited  procedure
    29  described in subdivision six of section three thousand twenty-a of  this
    30  article.
    31    §  28. Paragraphs (c) and (d) of subdivision 2, subparagraphs (ii) and
    32  (iii) of paragraph b and subparagraphs (ii), (v) and (vi) of paragraph c
    33  of subdivision 3 and paragraphs (a) and (b) of subdivision 4 of  section
    34  3020-a  of  the  education law, as amended by chapter 691 of the laws of
    35  1994, are amended and a new subdivision 6 is added to read as follows:
    36    (c) Within [ten] five days of receipt of the statement of charges, the
    37  employee shall notify the clerk or secretary of the employing  board  in
    38  writing  whether he or she desires a hearing on the charges and when the
    39  charges concern pedagogical incompetence or issues involving pedagogical
    40  judgment, his or her choice of either a  single  hearing  officer  or  a
    41  three member panel. All other charges shall be heard by a single hearing
    42  officer.
    43    (d)  The  unexcused  failure  of  the  employee to notify the clerk or
    44  secretary of his or her desire for a hearing within [ten] five  days  of
    45  the  receipt of charges shall be deemed a waiver of the right to a hear-
    46  ing.  Where an employee requests a hearing in the manner provided for by
    47  this section, the clerk or secretary of the board  shall,  within  three
    48  working  days of receipt of the employee's notice or request for a hear-
    49  ing, notify the commissioner of education of the need for a hearing.  If
    50  the  employee  waives  his or her right to a hearing the employing board
    51  shall proceed, within fifteen days, by a  vote  of  a  majority  of  all
    52  members  of  such  board,  to determine the case and fix the penalty, if
    53  any, to be imposed in accordance with subdivision four of this section.
    54    (ii) Not later than [ten] five days after the  date  the  commissioner
    55  mails  to  the  employing  board  and the employee the list of potential
    56  hearing officers and biographies provided to  the  commissioner  by  the

        A. 2                               20

     1  association,  the  employing  board  and  the  employee, individually or
     2  through their agents  or  representatives,  shall  by  mutual  agreement
     3  select a hearing officer from said list to conduct the hearing and shall
     4  notify the commissioner of their selection.
     5    (iii)  If  the  employing  board  and the employee fail to agree on an
     6  arbitrator to serve as a hearing officer from said list  and  so  notify
     7  the  commissioner  within  [ten] five days after receiving the list from
     8  the commissioner, the commissioner  shall  request  the  association  to
     9  appoint a hearing officer from said list.
    10    (ii)  The  hearing  officer  selected  to conduct a hearing under this
    11  section shall, within ten [to fifteen] days  of  agreeing  to  serve  as
    12  such,  hold  a  pre-hearing conference which shall be held in the school
    13  district or county seat of  the  county,  or  any  county,  wherein  the
    14  employing  school  board is located. The pre-hearing conference shall be
    15  limited in length to one day except that the hearing officer, in his  or
    16  her discretion, may allow one additional day for good cause shown.
    17    (v)  In  the  event  that  at the pre-hearing conference the employing
    18  board presents evidence that the [professional] teaching certificate  or
    19  license  of  the employee has been revoked and all judicial and adminis-
    20  trative remedies have been exhausted or foreclosed, the hearing  officer
    21  shall  schedule the date, time and place for an expedited hearing, which
    22  hearing shall commence not more than [seven] five days  after  the  pre-
    23  hearing  conference and which shall be limited to one day. The expedited
    24  hearing shall be held in the local school district or county seat of the
    25  county or any county, wherein the said employing board is  located.  The
    26  expedited  hearing  shall  not be postponed except upon the request of a
    27  party and then only for good cause as determined by the hearing officer.
    28  At such hearing, each party shall have equal time in  which  to  present
    29  its case.
    30    (vi)  During  the  pre-hearing  conference,  the hearing officer shall
    31  determine the reasonable amount of time necessary for a final hearing on
    32  the charge or charges and  shall  schedule  the  location,  time(s)  and
    33  date(s)  for  the  final hearing. The final hearing shall be held in the
    34  local school district or county seat of the county, or any county, wher-
    35  ein the said employing school board is located. In the  event  that  the
    36  hearing  officer  determines  that  the  nature of the case requires the
    37  final hearing to last more than one day, the days that are scheduled for
    38  the final hearing shall be consecutive. The day or  days  scheduled  for
    39  the  final  hearing  shall not be postponed except upon the request of a
    40  party and then only for good cause shown as determined  by  the  hearing
    41  officer.  In  all  cases,  the final hearing shall be completed no later
    42  than [sixty] thirty days after the  pre-hearing  conference  unless  the
    43  hearing  officer  determines  that extraordinary circumstances warrant a
    44  limited extension.
    45    (a) The hearing officer shall render a written decision within  [thir-
    46  ty] fifteen days of the last day of the final hearing, or in the case of
    47  an  expedited  hearing  within [ten] two days of such expedited hearing,
    48  and shall forthwith forward a copy thereof to the commissioner of educa-
    49  tion who shall immediately forward copies of the decision to the employ-
    50  ee and to the clerk or secretary of the  employing  board.  The  written
    51  decision  shall  include  the hearing officer's findings of fact on each
    52  charge, his or her conclusions with regard to each charge based on  said
    53  findings  and shall state what penalty or other action, if any, shall be
    54  taken by the employing board. At the request of the employee, in  deter-
    55  mining what, if any, penalty or other action shall be imposed, the hear-
    56  ing  officer shall consider the extent to which the employing board made

        A. 2                               21

     1  efforts towards correcting the behavior of the employee  which  resulted
     2  in  charges being brought under this section through means including but
     3  not limited to: remediation, peer intervention or an employee assistance
     4  plan.  In  those cases where a penalty is imposed, such penalty may be a
     5  written reprimand, a fine, suspension for a fixed time without  pay,  or
     6  dismissal.  In  addition  to or in lieu of the aforementioned penalties,
     7  the hearing officer, where he or she deems appropriate, may impose  upon
     8  the  employee  remedial  action  including  but not limited to leaves of
     9  absence with or  without  pay,  continuing  education  and/or  study,  a
    10  requirement  that  the  employee seek counseling or medical treatment or
    11  that the employee engage in any other remedial or combination of remedi-
    12  al actions.
    13    (b) Within [fifteen] ten days of  receipt  of  the  hearing  officer's
    14  decision  the  employing  board  shall  implement the decision.   If the
    15  employee is acquitted he or she shall be restored to his or her position
    16  with full pay for any period of suspension without pay and  the  charges
    17  expunged from the employment record. If an employee who was convicted of
    18  a  felony  crime  specified  in paragraph (b) of subdivision two of this
    19  section, has said conviction reversed, the employee,  upon  application,
    20  shall be entitled to have his pay and other emoluments restored, for the
    21  period from the date of his suspension to the date of the decision.
    22    6.  Alternative procedure for pedagogical incompetence.  Notwithstand-
    23  ing any inconsistent provision of law, when a tenured teacher is charged
    24  with  pedagogical  incompetence  in  accordance  with   the   procedures
    25  described  in  subdivision four of section three thousand twenty of this
    26  article, the following alternative hearing procedure shall be  followed.
    27  Within  thirty days of the unsatisfactory observation and written evalu-
    28  ation following the completion of the  ninety  day  remedial  plan,  the
    29  district  shall  notify  the tenured teacher of the charges based on the
    30  evaluation. At the same time the district shall request a list of  hear-
    31  ing  officers from the commissioner in accordance with subdivision three
    32  of this section. Such list shall contain names of hearing  officers  who
    33  would  be  available to complete the hearing and issue a decision within
    34  sixty days of the filing of charges. Within five days of  the  notifica-
    35  tion  of charges the teacher shall notify the district whether he or she
    36  is requesting a hearing. If the teacher requests a hearing, the  teacher
    37  and  school  district  shall  agree  on  a hearing officer from the list
    38  provided by the commissioner within five days of receipt of the list. If
    39  a hearing officer is not agreed to within five  days,  the  commissioner
    40  shall  select  a  hearing  officer from the list. The commissioner shall
    41  adopt regulations to ensure any hearing  conducted  in  accordance  with
    42  this  subdivision  is completed within ninety days of the unsatisfactory
    43  observation and written evaluation conducted following completion of the
    44  remedial plan.
    45    § 29. Section 305 of the education law is  amended  by  adding  a  new
    46  subdivision 25-a to read as follows:
    47    25-a.  a.    The  commissioner shall conduct an annual examination and
    48  evaluation of the financial condition of each school district. Based  on
    49  this  annual  review,  the  commissioner  shall conduct fiscal audits of
    50  identified school districts determined to be in fiscal distress.
    51    b. In conducting the audit, the commissioner shall gain access to  all
    52  backup  financial, budgeting and accounting documentation and other data
    53  for the current school year or any prior year that may be  necessary  to
    54  verify,  confirm  and  reconstruct all of the transactions engaged in by
    55  affected school districts, including records of any state agency,  board
    56  of  cooperative educational services, city or other municipality, public

        A. 2                               22

     1  authority or any person or entity contracting with the district concern-
     2  ing such transactions;
     3    c.  The  audit  shall  assess  the  affected school district's current
     4  financial accounting practices to ensure that they are  consistent  with
     5  established  standards,  that  they  provide  for  adequate  protections
     6  against theft, embezzlement and other abuses, and that adequate  systems
     7  of internal controls are in place, including a system to ensure that any
     8  filings  required  by the department for the payment of state or federal
     9  funds are made in a timely manner;
    10    d. In addition the audit shall assess  the  school  district's  budget
    11  process  and,  where applicable, ensure that information provided to the
    12  voters of the school district is accurate  and  complete  and  that  the
    13  board  of education of the school district have not allowed public funds
    14  to be used to influence the outcome of the budget vote in  violation  of
    15  law;
    16    e.  Upon  completion  of  the  audit, the commissioner shall prepare a
    17  preliminary audit report containing a detailed analysis of  the  current
    18  financial status of the school district, including but not limited to:
    19    (1)  an  overall  evaluation  of the financial practices of the school
    20  district,
    21    (2) a detailed financial statement providing an accounting of  all  of
    22  the district's revenues and expenditures,
    23    (3)  a detailed analysis of the district's actual revenues or expendi-
    24  tures as compared to its budgeted revenues and expenditures, and
    25    (4) a statement by the commissioner that summarizes the  findings  and
    26  recommendations  of the auditors, explicitly states any findings regard-
    27  ing the fiscal practices of the district that the auditors believe to be
    28  in violation of, or could potentially violate state or federal law, rule
    29  or regulation, or demonstrate negligence, incompetence or lack of train-
    30  ing that create a substantial risk of violations  of  state  or  federal
    31  laws, rules or regulations;
    32    f.  The  commissioner  shall  immediately refer any findings of fraud,
    33  abuse or other conduct constituting a crime that  are  uncovered  in  an
    34  audit,  as  appropriate, to the attorney general, United States attorney
    35  or district attorney having jurisdiction for appropriate action, togeth-
    36  er with any documents supporting the auditors' findings;
    37    g. Upon issuance of a  final  audit  report,  the  commissioner  shall
    38  review  any findings that may constitute grounds for removal of an indi-
    39  vidual from office or action against the teaching certificate or profes-
    40  sional license of an individual,  or  corrective  action  and  take  any
    41  appropriate action;
    42    h. The board of education shall conduct at least one public hearing on
    43  the  preliminary  audit  report.  The  board of education shall submit a
    44  summary of the comments, suggestions and questions raised at the  public
    45  hearing;
    46    i. After affording the board of education of the affected district the
    47  opportunity  to  respond  in  writing,  the  commissioner shall make the
    48  preliminary audit report and the district's response and the final audit
    49  report available to the public upon request for a  period  of  at  least
    50  three years.
    51    § 30. Subdivision 3 of section 2116-a of the education law, as amended
    52  by  section  27 of part A of chapter 436 of the laws of 1997, is amended
    53  to read as follows:
    54    3. The school  authorities  of  each  school  district,  except  those
    55  employing  fewer  than  eight  teachers,  but  including the city school
    56  districts of the cities of Buffalo and Rochester, shall obtain an annual

        A. 2                               23

     1  audit of its records by an independent certified public accountant or an
     2  independent public accountant.  Every three years, the  school  authori-
     3  ties shall obtain the annual audit of its records from a new independent
     4  certified  public  accountant  or an independent public accountant. Such
     5  new accountant may not be affiliated with the same accounting firm  that
     6  conducted  the previous audit. The board of education of the city school
     7  district of the city of New York, districts of such city shall obtain an
     8  annual audit by the comptroller of the city of New York, or by an  inde-
     9  pendent certified public accountant or an independent public accountant.
    10  The  boards  of education of the community districts of such city school
    11  district shall obtain an annual audit by the  bureau  of  audit  of  the
    12  board  of  education of the city school district of the city of New York
    13  or by an independent  certified  public  accountant  or  an  independent
    14  public accountant.  A copy of the audit report in form prescribed by the
    15  commissioner  and  certified  by  the accountant, or, in the city school
    16  district of the city of New York or the community districts therein,  by
    17  the  accountant,  or the comptroller or bureau of audit, as the case may
    18  be, shall be furnished to the commissioner on or  before  October  first
    19  following  the  end  of the fiscal year audited, except that such report
    20  shall be furnished to  the  commissioner  on  or  before  January  first
    21  following  the  end  of  the  fiscal  year  audited  for the city school
    22  districts of the cities of Buffalo, Rochester,  Syracuse,  Yonkers,  and
    23  New York and for the community school districts of the city of New York.
    24    §  31. Subdivision 1, paragraph a of subdivision 2-a and subdivision 4
    25  of section 2022 of the  education  law,  subdivision  1  as  amended  by
    26  section  8  of  part C of chapter 58 of the laws of 1998, paragraph a of
    27  subdivision 2-a as added by section 3 of part A of  chapter  60  of  the
    28  laws  of  2000,  and  subdivision  4 as added by section 23 of part A of
    29  chapter 436 of the laws of 1997, are amended to read as follows:
    30    1. Notwithstanding any law, rule or regulation to  the  contrary,  the
    31  election  of  trustees  or  members of the board of education, [and] the
    32  vote upon the appropriation of the necessary funds to meet the estimated
    33  expenditures, and the vote upon a bond resolution, in any common  school
    34  district, union free school district, central school district or central
    35  high school district shall be held at the annual meeting and election on
    36  the third Tuesday in May, provided, however, that such election shall be
    37  held  on the second Tuesday in May if the commissioner at the request of
    38  a local school board certifies no  later  than  March  first  that  such
    39  election  would  conflict with religious observances. When such election
    40  or vote is taken by recording the ayes and noes of the qualified  voters
    41  attending,  a  majority of the qualified voters present and voting, by a
    42  hand or voice vote, may determine to take up the question of voting  the
    43  necessary  funds  to meet the estimated expenditures for a specific item
    44  separately, and the qualified voters present and voting may increase the
    45  amount of any estimated expenditures or  reduce  the  same,  except  for
    46  teachers' salaries, and the ordinary contingent expenses of the schools.
    47  The  sole  trustee,  board  of  trustees  or board of education of every
    48  common, union free, central or central high school  district  and  every
    49  city  school  district to which this article applies shall hold a budget
    50  hearing not less than seven nor more than fourteen  days  prior  to  the
    51  annual  meeting  and  election  or  special  district meeting at which a
    52  school budget vote will occur, and shall  prepare  and  present  to  the
    53  voters  at  such  budget hearing a proposed school district budget and a
    54  proposed contingent budget for the ensuing school year.
    55    a. Commencing with the proposed budget for the [two thousand  one--two
    56  thousand  two]  two  thousand  five--two  thousand six school year, such

        A. 2                               24

     1  notice shall also include [a description of how total spending  and  the
     2  tax  levy  resulting  from  the  proposed  budget  would  compare with a
     3  projected contingency budget adopted pursuant to  section  two  thousand
     4  twenty-three  of  this article, assuming that such contingency budget is
     5  adopted on the same day as the vote on the proposed budget. Such compar-
     6  ison shall be in total and by component (program, capital  and  adminis-
     7  trative), and shall include a statement of the assumptions made in esti-
     8  mating   the  projected  contingency  budget],  in  a  form  and  manner
     9  prescribed by the commissioner, a detailed list consisting  of  any  and
    10  all  programs, initiatives and activities that are to be reduced, elimi-
    11  nated or in any other way affected by the contingent budget proposal for
    12  the ensuing school year.   Such list shall  be  in  an  itemized  format
    13  detailing every course, program, curricular activity and extracurricular
    14  activity  by name, so as to portray an accurate depiction of the effects
    15  a contingent budget will have on a school district.  In  addition,  each
    16  item  listed  shall have a dollar amount corresponding to it in order to
    17  clearly  depict  the  amount  such  reduction  or  elimination  actually
    18  decreases the total spending the initial budget proposes.
    19    4.  In  the event that the original proposed budget is not approved by
    20  the voters, the sole trustee, trustees or board of education may adopt a
    21  final budget pursuant to subdivision five of this section or resubmit to
    22  the voters the original or a revised budget. Such vote on the  resubmit-
    23  ted  original or revised budget shall occur on the third Tuesday in June
    24  provided, however, that such vote may be held on the second  Tuesday  in
    25  June if the commissioner at the request of the local school board certi-
    26  fies  no  later than June first that such vote would conflict with reli-
    27  gious observances. Upon one defeat of such resubmitted budget, the  sole
    28  trustee,  trustees  or  board  of  education  shall adopt a final budget
    29  pursuant to subdivision five of this section.  Notwithstanding any other
    30  provision of law to the contrary, the school  district  budget  for  any
    31  school  year,  or  any part of such budget or any propositions involving
    32  the expenditure of money for such school year shall not be submitted for
    33  a vote of the qualified voters more than twice.
    34    § 32. Paragraph a of subdivision 7 of section 1608  of  the  education
    35  law,  as  amended  by  section  4 of part H of chapter 83 of the laws of
    36  2002, is amended and a new subdivision 4-a is added to read as follows:
    37    a. Each year, commencing with the proposed budget for  the  two  thou-
    38  sand--two  thousand  one  school  year, the trustee or board of trustees
    39  shall prepare a property tax report card, pursuant to regulations of the
    40  commissioner, and shall make it publicly available by transmitting it to
    41  local newspapers of general circulation, appending it to copies  of  the
    42  proposed  budget  made  publicly available as required by law, making it
    43  available for distribution at the annual meeting, and otherwise  dissem-
    44  inating  it  as  required  by  the  commissioner. Such report card shall
    45  include: (i) the amount of total spending and total estimated school tax
    46  levy that would result from adoption of  the  proposed  budget  and  the
    47  percentage  increase  or decrease in total spending and total school tax
    48  levy from the school district budget  for  the  preceding  school  year;
    49  [and] (ii) the projected enrollment growth for the school year for which
    50  the budget is prepared, and the percentage change in enrollment from the
    51  previous year; [and] (iii) the percentage increase in the consumer price
    52  index, as defined in paragraph c of this subdivision; (iv) the amount of
    53  unexpended  surplus  funds.    For  purposes of this paragraph, the term
    54  "surplus funds" shall mean any and all operating funds in excess of  two
    55  percent  of the current school year budget, regardless of the account in
    56  which such funds are held; and (v) for the three preceding school  years

        A. 2                               25

     1  report  card  data  providing  a  comparison  of (1) change in the total
     2  school tax levy and (2) the percentage increase in  the  consumer  price
     3  index over the same three year period.
     4    4-a.  The  program component, capital component and the administrative
     5  component shall be presented to the qualified voters in a single  propo-
     6  sition.  There  shall  be  no  separate propositions for any expenditure
     7  required to be included in the budget under  subdivision  four  of  this
     8  section.
     9    §  33.  Paragraph  a of subdivision 7 of section 1716 of the education
    10  law, as amended by section 5 of part H of chapter  83  of  the  laws  of
    11  2002, is amended and a new subdivision 4-a is added to read as follows:
    12    a.  Each  year,  commencing with the proposed budget for the two thou-
    13  sand--two thousand one school year, the board of education shall prepare
    14  a property tax report card, pursuant to regulations of the commissioner,
    15  and shall make it publicly available by transmitting it to local newspa-
    16  pers of general circulation, appending it  to  copies  of  the  proposed
    17  budget  made  publicly available as required by law, making it available
    18  for distribution at the annual meeting, and otherwise  disseminating  it
    19  as required by the commissioner. Such report card shall include: (i) the
    20  amount  of total spending and total estimated school tax levy that would
    21  result from adoption of the proposed budget and the percentage  increase
    22  or  decrease in total spending and total school tax levy from the school
    23  district budget for the preceding school year; [and] (ii) the  projected
    24  enrollment  growth for the school year for which the budget is prepared,
    25  and the percentage change in enrollment from the  previous  year;  [and]
    26  (iii) the percentage increase in the consumer price index, as defined in
    27  paragraph  c  of this subdivision; (iv) the amount of unexpended surplus
    28  funds. For purposes of this paragraph, the term  "surplus  funds"  shall
    29  mean any and all operating funds in excess of two percent of the current
    30  school  year  budget,  regardless of the account in which such funds are
    31  held; and (v) for the three preceding  school  years  report  card  data
    32  providing  a  comparison  of (1) the change in total school tax levy and
    33  (2) the percentage increase in the consumer price index  over  the  same
    34  three year period.
    35    4-a.  The  program component, capital component and the administrative
    36  component shall be presented to the qualified voters in a single  propo-
    37  sition.  There  shall  be  no  separate propositions for any expenditure
    38  required to be included in the budget under  subdivision  four  of  this
    39  section.
    40    §  34. Subdivision 2-a of section 2022 of the education law is amended
    41  by adding a new paragraph c to read as follows:
    42    c. Commencing with the proposed budget for the two thousand  five--two
    43  thousand  six  school  year, such notice shall also include a comparison
    44  between the estimated percentage change in the total tax  levy  and  the
    45  full  value  tax  rate  from  the preceding year's budget based upon the
    46  proposed school budget and the percentage change in the total  tax  levy
    47  and  full value tax rate from the preceding year based upon the proposed
    48  contingency budget.
    49    § 35. Subdivision 7 of section 2601-a of the education law,  as  added
    50  by chapter 474 of the laws of 1996, is amended and a new subdivision 3-a
    51  is added to read as follows:
    52    7.  Each  year, the board of education shall prepare a school district
    53  report card, pursuant to regulations of the commissioner, and shall make
    54  it publicly available by transmitting it to local newspapers of  general
    55  circulation, appending it to copies of the proposed budget made publicly
    56  available  as  required  by law, making it available for distribution at

        A. 2                               26

     1  the annual meeting, and otherwise disseminating it as  required  by  the
     2  commissioner.  Such  report  card shall include measures of the academic
     3  performance of the school district, on a school  by  school  basis,  and
     4  measures of the fiscal performance of the district, as prescribed by the
     5  commissioner.  Pursuant  to  regulations of the commissioner, the report
     6  card shall also compare these measures to  statewide  averages  for  all
     7  public  schools, and statewide averages for public schools of comparable
     8  wealth and need, developed by the commissioner. Such report  card  shall
     9  include,  at a minimum, any information on the school district regarding
    10  pupil performance and expenditure per pupil required to be  included  in
    11  the  annual  report  by  the regents to the governor and the legislature
    12  pursuant to section two hundred fifteen-a of this chapter, the amount of
    13  unexpended surplus funds; and any  other  information  required  by  the
    14  commissioner. For purposes of this subdivision, the term "surplus funds"
    15  shall  mean  any and all operating funds in excess of two percent of the
    16  current school year budget, regardless of  the  account  in  which  such
    17  funds  are  held.  School  districts  (i)  identified  as having fifteen
    18  percent or more of their students in special education,  or  (ii)  which
    19  have  fifty  percent  or  more  of  their  students with disabilities in
    20  special education programs or services sixty  percent  or  more  of  the
    21  school  day  in  a general education building, or (iii) which have eight
    22  percent or more of their students with disabilities in special education
    23  programs in public or private separate educational settings shall  indi-
    24  cate  on  their school district report card their respective percentages
    25  as defined in this paragraph and paragraphs (i) and (ii) of this  subdi-
    26  vision as compared to the statewide average.
    27    3-a.  The  program component, capital component and the administrative
    28  component shall be presented to the qualified voters in a single  propo-
    29  sition.  There  shall  be  no  separate propositions for any expenditure
    30  required to be included in the budget under  subdivision  four  of  this
    31  section.
    32    § 36. The education law is amended by adding a new section 141 to read
    33  as follows:
    34    §  141.  Disclosure of violations. The commissioner shall require that
    35  upon the finding that a school district has violated  any  provision  of
    36  this  chapter  or  rules  and regulations of the commissioner, notice of
    37  such violation shall be publicized by transmitting a description of  the
    38  commissioner's  findings to the voters in a separate mailing. Such sepa-
    39  rate mailing shall be mailed before the annual budget  hearing  but  not
    40  more than twenty-five days prior to such hearing. Further, notice of and
    41  a  description  of  each  violation shall be read into the record at the
    42  next succeeding annual budget hearing.
    43    § 37. The education law is amended by adding a new section 319 to read
    44  as follows:
    45    § 319. Protection of school employees who report  information  to  the
    46  office  of  educational  accountability. Any school employee who in good
    47  faith, believes, or has reasonable cause to believe, that the actions or
    48  fiscal practices of a school district, or other local  education  agency
    49  violates  any  local,  state,  federal  law  or rule and regulation, and
    50  reports such information to the office of educational accountability, or
    51  to law enforcement authorities,  shall  have  immunity  from  any  civil
    52  liability  that  may arise from the making of such report, and no school
    53  district, or employee thereof, charter school, or employee  thereof,  or
    54  other  local  education agency, or employee thereof shall take, request,
    55  or cause a retaliatory action against any such employee who  makes  such
    56  report.

        A. 2                               27

     1    §  38.  The tax law is amended by adding a new section 1621 to read as
     2  follows:
     3    §  1621.  Video  lottery  franchise  gaming. a. The division is hereby
     4  authorized to license, pursuant to rules and regulations to  be  promul-
     5  gated  by  the  division,  the  operation and conduct of a lottery to be
     6  known as video lottery franchise gaming to be conducted at up  to  eight
     7  venues throughout the state, each requiring a separate license. Licenses
     8  shall  be  awarded  by  the  division  on  a  competitive basis and each
     9  proposed video lottery  franchise  location  shall  be  subject  to  the
    10  approval  of  the division. Any entity, including but not limited to off
    11  track betting corporations, which demonstrates to  the  satisfaction  of
    12  the division that it possesses the qualifications and expertise to oper-
    13  ate  video  lottery  franchise gaming shall be eligible to competitively
    14  bid for one or more available  licenses.  Provided,  however,  that  the
    15  following  geographic  restrictions shall apply: (i) except as otherwise
    16  authorized in this section, licenses may not be granted pursuant to this
    17  section for locations within fifteen  miles  of  any  facility  licensed
    18  pursuant  to  section  sixteen hundred seventeen-a of this article; (ii)
    19  the operation of video lottery franchise gaming as  authorized  in  this
    20  section  in the city of New York shall be permitted only in the counties
    21  of New York south of 59th street, Kings and Richmond and at no more than
    22  five locations; and (iii) licenses may not be granted pursuant  to  this
    23  section  for  locations within the counties of Westchester, Rockland and
    24  Putnam; provided, however, that any  one  or  more  of  such  geographic
    25  restrictions  may  be waived by the division if any racetrack authorized
    26  to conduct video lottery gaming  pursuant  to  section  sixteen  hundred
    27  seventeen-a  of  this article has not begun or is not scheduled to begin
    28  operating video lottery gaming on or before April  first,  two  thousand
    29  five.   Notwithstanding any inconsistent provision of law, video lottery
    30  franchise gaming at each approved  location  pursuant  to  this  section
    31  shall be deemed an approved activity at such location under the relevant
    32  city,  county,  town, or village land use or zoning ordinances, rules or
    33  regulations. No entity operating video lottery franchise gaming pursuant
    34  to this section may house such gaming activity in a structure deemed  or
    35  approved by the division as "temporary" for longer than eighteen months.
    36    b.  The  division shall promulgate rules and regulations governing all
    37  aspects of the operation and conduct of video lottery franchise  gaming,
    38  including  but  not limited to, the criteria for awarding such licens