NY-GMU General Municipal Law NY

Short title. This chapter shall be known as the "General

Municipal Law."

Definitions. The term "municipal corporation," as used in this

chapter, includes only a county, town, city and village. The term

"governing board" includes the board of supervisors of a county, the

town board of a town, the common council of a city, and the board of

trustees of a village.

a. "Urban renewal." The term "urban renewal" shall mean a program as

defined in article fifteen of this chapter.

b. "Infant" or "minor". The term "infant" or "minor", as used in this

chapter, shall mean a person who has not attained the age of eighteen

years.

Compensation for property of a municipal corporation, school

district or district corporation taken by eminent domain. Where property

of a municipal corporation, school district or district corporation is

taken in the exercise of the power of eminent domain for a purpose

substantially different from that for which it is held by such municipal

corporation, school district or district corporation, just compensation

to the municipal corporation, school district or district corporation

shall be made in the same manner, to the same extent and subject to the

same limitations as though it were private property.

Rate of interest on judgments and accrued claims against

municipal corporations. 1. Except as provided in subdivisions two, four

and five of this section, the rate of interest to be paid by a municipal

corporation upon any judgment or accrued claim against the municipal

corporation shall not exceed nine per centum per annum.

2. The rate of interest to be paid upon any judgment or accrued claim

against the municipal corporation arising out of condemnation

proceedings or action to recover damages for wrongful death shall not

exceed six per centum per annum.

3. The term "municipal corporation" as used in this section shall mean

and include a city, county, village, town, school district, fire

district, a special or public district organized for the purpose of

financing the costs of public improvements or a pension or retirement

system supported in whole or in part by any such city, county, village,

town, school district or special or public district.

4. Payments of interest or principal on any note or bond of the city

of New York issued on or after the effective date of this act which is

guaranteed under the New York City Loan Guarantee Act of 1978, Public

Law 95-339, and which such city has not paid or made funds available to

pay when due, shall accrue interest at the rate borne for principal by

such obligation from such due date until (i) there shall have been

deposited with an independent trustee sufficient monies to cover such

overdue payment and any interest accrued thereon to the date of such

deposit and (ii) the making of such deposit shall have been announced

for three days in succession in a newspaper of general circulation in

the city of New York.

5. Bonds, notes and certificates of participation, and agreements and

instruments related to the foregoing, as authorized pursuant to

paragraph (e) of section 54.10, section 54.90 or section 168.00 of the

local finance law, or section one hundred nine-b of this chapter may

provide for the payment of interest on judgments and claims payable to

or for the account of providers of credit or liquidity support or their

successors in interest, notwithstanding any limitations imposed by this

section.

Limitation on real estate tax in New York city. 1. The amount

to be raised by tax on real estate in any fiscal year commencing on or

after July first, nineteen hundred fifty-four by the city of New York

and the counties contained therein for city and county purposes, in

addition to providing for the interest on and the principal of all

indebtedness, shall not, except as otherwise provided herein, exceed an

amount equal to a combined total of two and one-half per centum of the

average full valuation of taxable real estate of such city less the

amount to be raised by tax on real estate in such year for the payment

of the interest on and redemption of certificates or other evidence of

indebtedness described in paragraphs A and D of section five of article

eight of the constitution, or renewals thereof; provided, however, that

for the fiscal year commencing July first, nineteen hundred fifty-three

the amount to be so raised by tax as provided in this section shall be

not in excess of a combined total of two per centum computed as provided

herein plus fifty million dollars. The average full valuation of taxable

real estate of such city shall be determined as provided by section ten

of article eight of the constitution.

2. Notwithstanding the provisions of subdivision one of this section,

if any railroad, as defined in the rapid transit law, is operated by the

board of transportation or any other agency, except the New York city

transit authority created pursuant to title fifteen of the public

authorities law, on or after July first in any year, the amount to be

raised by tax as provided in subdivision one of this section shall not

be in excess of a combined total percentage of two per centum for the

city's fiscal year commencing July first in such year and no more. In

addition, for the fiscal year commencing July first, nineteen hundred

fifty-three, this further limitation to two per centum with no

additional amount, as set forth in this subdivision, shall apply unless

the board of estimate shall have entered into an agreement pursuant to

the provisions of section eighteen hundred three of the public

authorities law, as amended, on or before June first, nineteen hundred

fifty-three with such authority to transfer to it transit facilities

owned by the city, and such transfer is completed prior to July first,

nineteen hundred fifty-three.

Limit upon real property tax levies by local governments. 1.

Unless otherwise provided by law, the amount of real property taxes that

may be levied by or on behalf of any local government, other than the

city of New York and the counties contained therein, shall not exceed

the tax levy limit established pursuant to this section.

2. When used in this section:

(a) "Allowable levy growth factor" shall be the lesser of: (i) one and

two one-hundredths; or (ii) the sum of one plus the inflation factor;

provided, however, that in no case shall the levy growth factor be less

than one.

(b) "Available carryover" means the amount by which the tax levy for

the prior fiscal year was below the tax levy limit for such fiscal year,

if any, but no more than an amount that equals one and one-half percent

of the tax levy limit for such fiscal year.

(c) "Coming fiscal year" means the fiscal year of the local government

for which a tax levy limit shall be determined pursuant to this section.

(d) "Inflation factor" means the quotient of: (i) the average of the

national consumer price indexes determined by the United States

department of labor for the twelve-month period ending six months prior

to the start of the coming fiscal year minus the average of the national

consumer price indexes determined by the United States department of

labor for the twelve-month period ending six months prior to the start

of the prior fiscal year, divided by: (ii) the average of the national

consumer price indexes determined by the United States department of

labor for the twelve-month period ending six months prior to the start

of the prior fiscal year, with the result expressed as a decimal to four

places.

(e) "Local government" means a county, city, town, village, fire

district, or special district including but not limited to a district

created pursuant to article twelve or twelve-A, or governed by article

thirteen of the town law, or created pursuant to article five-A, five-B

or five-D of the county law, chapter five hundred sixteen of the laws of

nineteen hundred twenty-eight, or chapter two hundred seventy-three of

the laws of nineteen hundred thirty-nine, and shall include town

improvements provided pursuant to articles three-A and twelve-C of the

town law but shall not include the city of New York or the counties

contained therein.

(f) "Prior fiscal year" means the fiscal year of the local government

immediately preceding the coming fiscal year.

(g) "Tax levy limit" means the amount of taxes authorized to be levied

by or on behalf of a local government pursuant to this section,

provided, however, that the tax levy limit shall not include the

following:

(i) a tax levy necessary for expenditures resulting from court orders

or judgments against the local government arising out of tort actions

for any amount that exceeds five percent of the total tax levied in the

prior fiscal year;

(ii) in years in which the system average actuarial contribution rate

of the New York state and local employees' retirement system, as defined

by paragraph ten of subdivision a of section nineteen-a of the

retirement and social security law, increases by more than two

percentage points from the previous year, a tax levy necessary for

expenditures for the coming fiscal year for local government employer

contributions to the New York state and local employees' retirement

system caused by growth in the system average actuarial contribution

rate minus two percentage points;

(iii) in years in which the system average actuarial contribution rate

of the New York state and local police and fire retirement system, as

defined by paragraph eleven of subdivision a of section three hundred

nineteen-a of the retirement and social security law, increases by more

than two percentage points from the previous year, a tax levy necessary

for expenditures for the coming fiscal year for local government

employer contributions to the New York state and local police and fire

retirement system caused by growth in the system average actuarial

contribution rate minus two percentage points;

(iv) in years in which the normal contribution rate of the New York

state teachers' retirement system, as defined by paragraph a of

subdivision two of section five hundred seventeen of the education law,

increases by more than two percentage points from the previous year, a

tax levy necessary for expenditures for the coming fiscal year for local

government employer contributions to the New York state teachers'

retirement system caused by growth in the normal contribution rate minus

two percentage points.

(h) "Tax" or "taxes" shall include (i) a charge imposed upon real

property by or on behalf of a county, city, town, village or school

district for municipal or school district purposes, and (ii) special ad

valorem levies and special assessments as defined in subdivisions

fourteen and fifteen of section one hundred two of the real property tax

law.

3. (a) Subject to the provisions of subdivision five of this section,

beginning with the fiscal year that begins in two thousand twelve, no

local government shall adopt a budget that requires a tax levy that is

greater than the tax levy limit for the coming fiscal year. Provided

however the tax levy limit shall not prohibit a levy necessary to

support the expenditures pursuant to subparagraphs (i) through (iv) of

paragraph (g) of subdivision two of this section.

(b) (i) The commissioner of taxation and finance shall calculate a

quantity change factor for each local government for the coming fiscal

year based upon the physical or quantity change, as defined by section

twelve hundred twenty of the real property tax law, reported to the

commissioner of taxation and finance by the assessor or assessors

pursuant to section five hundred seventy-five of the real property tax

law. The quantity change factor shall show the percentage by which the

full value of the taxable real property in the local government has

changed due to physical or quantity change between the second final

assessment roll or rolls preceding the final assessment roll or rolls

upon which taxes are to be levied, and the final assessment roll or

rolls immediately preceding the final assessment roll or rolls upon

which taxes are to be levied. The commissioner of taxation and finance

shall, as appropriate, promulgate rules and regulations regarding the

calculation of the quantity change factor which may adjust the

calculation based on the development on tax exempt land.

(ii) After determining the quantity change factor for the local

government, the commissioner of taxation and finance shall proceed as

follows:

(A) If the quantity change factor is negative, the commissioner of

taxation and finance shall not determine a tax base growth factor for

the local government.

(B) If the quantity change factor is positive, the commissioner of

taxation and finance shall determine a tax base growth factor for the

local government which is equal to one plus the quantity change factor.

(iii) The commissioner of taxation and finance shall notify the state

comptroller and each local government of the applicable tax base growth

factors, if any, as soon thereafter as such factors are determined.

(c) Each local government shall calculate the tax levy limit

applicable to the coming fiscal year which shall be determined as

follows:

(i) Ascertain the total amount of taxes levied for the prior fiscal

year.

(ii) Multiply the result by the tax base growth factor, calculated

pursuant to paragraph (b) of this subdivision, if any.

(iii) Add any payments in lieu of taxes that were receivable in the

prior fiscal year.

(iv) Subtract the tax levy necessary to support expenditures pursuant

to subparagraph (i) of paragraph (g) of subdivision two of this section

for the prior fiscal year, if any.

(v) Multiply the result by the allowable levy growth factor.

(vi) Subtract any payments in lieu of taxes receivable in the coming

fiscal year.

(vii) Add the available carryover, if any.

(d) Whenever the responsibility and associated cost of a local

government function is transferred to another local government, the

state comptroller shall determine the costs and savings on the affected

local governments attributable to such transfer for the first fiscal

year following the transfer, and notify such local governments of such

determination and that they shall adjust their tax levy limits

accordingly.

4. (a) When two or more local governments consolidate, the state

comptroller shall determine the tax levy limit for the consolidated

local government for the first fiscal year following the consolidation

based on the respective tax levy limits of the component local

governments that formed such consolidated local government from the last

fiscal year prior to the consolidation.

(b) When a local government dissolves, the state comptroller shall

determine the tax levy limit for the local government that assumes the

debts, liabilities, and obligations of such dissolved local government

for the first fiscal year following the dissolution based on the

respective tax levy limits of such dissolved local government and such

local government that assumes the debts, liabilities, and obligations of

such dissolved local government from the last fiscal year prior to the

dissolution.

(c) The tax levy limit established by this section shall not apply to

the first fiscal year after a local government is newly established or

constituted through a process other than consolidation or dissolution.

5. A local government may adopt a budget that requires a tax levy that

is greater than the tax levy limit for the coming fiscal year, not

including any levy necessary to support the expenditures pursuant to

subparagraphs (i) through (iv) of paragraph g of subdivision two of this

section, only if the governing body of such local government first

enacts, by a vote of sixty percent of the total voting power of such

body, a local law to override such limit for such coming fiscal year

only, or in the case of a district or fire district, a resolution,

approved by a vote of sixty percent of the total voting power of such

body, to override such limit for such coming fiscal year only.

6. In the event a local government's actual tax levy for a given

fiscal year exceeds the tax levy limit as established pursuant to this

section due to clerical or technical errors, the local government shall

place the excess amount of the levy in reserve in accordance with such

requirements as the state comptroller may prescribe, and shall use such

funds and any interest earned thereon to offset the tax levy for the

ensuing fiscal year. If, upon examination pursuant to sections

thirty-three and thirty-four of this chapter, the state comptroller

finds that a local government levied taxes in excess of the applicable

tax levy limit, the local government, as soon as practicable, shall

place an amount equal to the excess amount of the levy in such reserve

in accordance with this subdivision.

7. All local governments subject to the provisions of this section

shall, prior to adopting a budget for the coming fiscal year, submit to

the state comptroller, in a form and manner as he or she may prescribe,

any information necessary for calculating the tax levy limit for the

coming fiscal year.

Investigation of expenditures of towns and villages. If

twenty-five freeholders in any town or village shall present to a

justice of the supreme court of the judicial district in which such town

or village is situated, an affidavit, stating that they are freeholders

and have paid taxes on real property within such town or village within

one year, that they have reason to believe that the moneys of such town

or village are being unlawfully or corruptly expended, and the grounds

of their belief, such justice, upon ten days' notice to the supervisor,

and the officers of the town disbursing the funds to which such moneys

belong, or the trustees and treasurer of the village, shall make a

summary investigation into the financial affairs of such town or

village, and the accounts of such officers, and, in his discretion, may

appoint experts to make such investigation, and may cause the result

thereof to be published in such manner as he may deem proper.

The costs incurred in such investigation shall be taxed by the

justice, and paid, upon his order, by the officers whose expenditures

are investigated, if the facts in such affidavit be substantially

proved, and otherwise, by the freeholders making such affidavit. If such

justice shall be satisfied that any of the moneys of such town or

village are being unlawfully or corruptly expended, or are being

appropriated for purposes to which they are not properly applicable, or

are improvidently squandered or wasted, he shall forthwith grant an

order restraining such unlawful or corrupt expenditure, or such other

improper use of such moneys.

Payment of fines, civil penalties, rent, rates, taxes, fees,

charges and other amounts by credit card. (a) The following terms, when

used or referred to in this section, shall have the following meaning:

1. "Credit card" means any credit card, credit plate, charge card,

charge plate, courtesy card, debit card, other identification card,

value transfer device as defined by the state comptroller or device

issued by a person to another person which may be used to obtain a cash

advance or a loan or credit, or to purchase or lease property or

services on the credit of the person issuing the credit card or a person

who has agreed with the issuer to pay obligations arising from the use

of a credit card issued to another person.

1-a. "Card issuer" means an issuer of a credit card, charge card or

other value transfer device.

2. "Financing agency" means any agency defined as such in subdivision

eighteen of section four hundred one of the personal property law.

3. "Person" means an individual, partnership, corporation or any other

legal or commercial entity.

(b) The governing board of any local government, as that term is

defined in section ten of this article, may, by local law, ordinance or

resolution, determine that it is in the public interest and authorize

such local government to enter into agreements with one or more

financing agencies or card issuers to provide for the acceptance, by

such officers of the local government as may be designated pursuant to

subdivision (f) of this section, of credit cards as a means of payment

of fines, civil penalties, rent, rates, taxes, fees, charges, revenue,

financial obligations or other amounts, including penalties, special

assessments and interest, owed to the local government. Any such

agreement shall govern the terms and conditions upon which a credit card

proffered as a means of payment of a fine, civil penalty, rent, rate,

tax, fee, charge, revenue, financial obligation or other amount,

including penalty, special assessment or interest, shall be accepted or

declined and the manner in and conditions upon which the financing

agency or card issuer shall pay to such local government the amount of

fines, civil penalties, rent, rates, taxes, fees, charges, revenue,

financial obligations or other amounts, including penalty, special

assessment or interest, paid by means of a credit card pursuant to such

agreement. Any such agreement may provide for the payment by such local

government to such financing agency or card issuer of fees for the

services provided by such financing agency or card issuer pursuant to

such agreement, which fees may consist of a discount deducted from or

payable in respect of the amount of each such fine, civil penalty, rent,

rate, tax, fee, charge, revenue, financial obligation or other amount,

including penalty, special assessment or interest. If fees are paid by

such a discount, they shall be post-audited by the officer or board of

the local government responsible for auditing claims against the local

government.

(c) Any local government which has entered into an agreement with a

financing agency or card issuer as authorized by the provisions of

subdivision (b) of this section may accept credit cards as a means of

payment of fines, civil penalties, rent, rates, taxes, fees, charges,

revenue, financial obligations or other amounts, including penalties,

special assessment or interest, as provided in such agreement and may

pay such fees as are specified in such agreement to such financing

agency or card issuer in consideration of the services rendered by such

financing agency or card issuer thereunder. Notwithstanding any other

provision of law to the contrary, it shall be the option of the

governing board of the local government to require, as a condition of

accepting payment by credit card, that such person offering payment by

credit or charge card pay a service fee to the local government not

exceeding costs incurred by the local government in connection with the

credit or charge card payment transaction, including any fee owed by the

local government to the financing agency or card issuer arising from

that transaction.

(d) Contracts entered into pursuant to this section between local

government and financing agencies or card issuers shall be awarded in

accordance with the local government's written internal policies and

procedures governing procurements adopted pursuant to section one

hundred four-b of this chapter.

(e) The underlying debt, lien, obligation, bill, account or other

amount owed to the local government for which payment by credit card is

accepted by the local government shall not be expunged, cancelled,

released, discharged or satisfied, and any receipt or other evidence of

payment shall be deemed conditional, until the local government has

received final and unconditional payment of the full amount due from the

financing agency or card issuer for such credit card transaction.

(f) The governing board, in enacting a local law, ordinance or

resolution pursuant to this section, shall designate which of its

officers, charged with the duty of collecting or receiving moneys on

behalf of the local government, shall be authorized to accept credit

cards as a means of payment of fines, taxes, rent, rates, fees, charges,

revenue, financial obligations and other amounts, including penalties,

special assessments or interest.

(g) Under circumstances where local governments are otherwise

authorized by law to contract for the collection of fines, civil

penalties, rent, rates, taxes, fees, charges, revenue, financial

obligations or other amounts, including penalties, special assessments

or interest, such contract shall provide that the contractor accept

credit cards as a mechanism for payment.

Electronic or wire transfers. 1. Notwithstanding any other law

to the contrary, whenever an officer of a local government, as that term

is defined in section ten of this article, is authorized or directed

pursuant to law to disburse or transfer on behalf of the local

government funds in the custody of the officer, that officer shall be

authorized to disburse or transfer such funds by means of electronic or

wire transfer. Such disbursement shall be otherwise subject to

applicable laws, provided that:

(a) the governing board of the local government has entered into a

written agreement with the bank or trust company in which such funds

have been deposited, prescribing the manner in which electronic or wire

transfer of such funds shall be accomplished, identifying by number and

name those accounts from which electronic or wire transfers may be made,

identifying which officer or officers are authorized to order the

electronic or wire transfer of funds from those accounts, and

implementing a security procedure as defined in section 4-A-201 of the

uniform commercial code; and

(b) the bank or trust company processing the transfer shall provide to

the officer ordering the electronic or wire transfer of funds written

confirmation of each such transaction no later than the business day

following the day on which the funds are transmitted.

2. It shall be the duty of the governing board of the local government

to adopt a system of internal controls for the documentation and

reporting of all transfers or disbursements of funds accomplished by

electronic or wire transfer.

Collection of fines, civil penalties, rent, rates, taxes, fees,

charges and other amounts via the internet. 1. The governing board of

any local government, as that term is defined in section ten of this

article, may, by local law, ordinance or resolution, determine that it

is in the public interest and authorize such local government to provide

for the acceptance of penalties, rents, rates, taxes, fees, charges,

revenue, financial obligations or other amounts, including penalties,

special assessments or interest via a municipal internet website or the

website of a third-party vendor that has contracted with the local

government to receive such payments on its behalf. Submission via the

internet may not, however, be required as the sole method for the

collection of fines, civil penalties, rent, rates, taxes, fees, charges

and other amounts. Such payments shall be accepted via the internet in a

manner and condition defined by such local government. Any method used

to receive internet payments shall comply with article three of the

state technology law and any rules and regulations promulgated and

guidelines developed thereunder and, at a minimum must (a) authenticate

the identity of the sender; and (b) ensure the security of the

information transmitted.

2. Any local government authorizing the payment of taxes via the

internet shall provide or direct its vendor to provide a confirmation

page to the taxpayer following the completion of the internet

transaction. Such confirmation page shall include, at least, the

following:

(a) the date the internet transaction was completed and sent by the

taxpayer;

(b) the amount paid;

(c) a unique confirmation number; and

(d) a notice advising the taxpayer to print out and retain the

confirmation page as his or her receipt.

3. Payments received via the internet shall be considered received by

the appropriate officer and paid by the taxpayer at the time the

internet transaction is completed and sent by the taxpayer.

4. The underlying debt, lien, obligation, bill, account or other

amount owed to the local government for which payment by internet is

accepted by the local government shall not be expunged, cancelled,

released, discharged or satisfied, and any receipt or other evidence of

payment shall be deemed conditional, until the local government has

received final and unconditional payment of the full amount due.

5. The governing board, in enacting a local law, ordinance or

resolution pursuant to this section, shall designate which of its

officers, charged with the duty of collecting or receiving moneys on

behalf of the local government, shall be authorized to accept such

payments via the internet.

6. The state comptroller shall issue such guidelines as he or she

deems appropriate governing the use of third-party vendors for this

purpose. Any local government contracting with a third-party vendor for

this purpose shall follow the guidelines issued by the state

comptroller.

Capital reserve funds for counties, cities, villages, towns and

sewer and water improvement districts. 1. As used in this section:

a. The term "governing board", insofar as it is used in reference to a

village, shall mean the board of trustees thereof; insofar as it is used

in reference to a town, shall mean the town board thereof; insofar as it

is used in reference to a county, shall mean the legislative body

thereof; insofar as it is used in reference to a city, shall mean the

"local legislative body" thereof, as that term is defined in subdivision

seven of section two of the municipal home rule law, as amended from

time to time; insofar as it is used in reference to a town or county

improvement district, shall mean the town board of the town or the

legislative body of the county in which such district is located unless,

in the case of a town improvement district, such district has a separate

board of commissioners, in which case it shall mean such board of

commissioners.

b. The term "capital improvement" shall mean:

(1) Any physical public betterment or improvement or any preliminary

studies and surveys relative thereto.

(2) Land or rights in land.

(3) Any furnishings, equipment, machinery or apparatus for any

physical public betterment or improvement acquired at the time when such

betterment or improvement is constructed, reconstructed or acquired.

c. The term "equipment" shall include any equipment, machinery or

apparatus not included in the definition of the term "capital

improvement" and for the acquisition of which a period of probable

usefulness has been provided by law.

d. The term "obligations" shall include bonds, notes, certificates or

other evidences of indebtedness.

2. The governing board of any county, city, village, town or sewer and

water improvement district may establish capital reserve funds for the

financing of all or part of the cost of:

a. The construction, reconstruction or acquisition of a specific

capital improvement or the acquisition of a specific item or specific

items of equipment.

b. The construction, reconstruction or acquisition of a type of

capital improvement or the acquisition of a type of equipment.

3. The provisions of paragraph two shall not apply to:

a. Capital improvements to be constructed, reconstructed or acquired,

or equipment to be acquired, on behalf of an improvement district or

other similar district located within such municipality other than a

sewer and/or water improvement district, or

b. Capital improvements or equipment, all or part of the cost of which

is to be borne by assessments for benefit or ad valorem taxes upon the

real property within an area of benefit within such municipality other

than a sewer and/or water improvement district.

4. If the governing board authorizes the establishment of a capital

reserve fund for the financing of all or part of the cost of the

construction, reconstruction or acquisition of a specific capital

improvement or the acquisition of a specific item or specific items of

equipment, it shall set forth in such authorization the estimated

maximum cost thereof. However, if the authorization by such governing

board of the issuance of obligations for such capital improvement or

equipment is required by law to be subject to a permissive or mandatory

referendum, then the authorization of the establishment of such a fund

shall be subject to a permissive referendum. In the event that the

authorization by such governing board of the issuance of obligations for

such capital improvement or equipment is required by law to be subject

to a permissive or mandatory referendum only if such obligations are to

have a maturity of more than five years or not less than some other

minimum period, then the authorization of the establishment of such a

fund shall be subject to a permissive referendum only if the period of

probable usefulness of such capital improvement or equipment is equal to

or more than such minimum period of maturity. A permissive referendum on

the authorization of the establishment of such a capital reserve fund

shall be governed by:

a. Sections twenty-four, twenty-five and twenty-six of the municipal

home rule law, as amended from time to time, so far as they may be

applicable, in the case of cities.

b. Article seven of the town law, as amended from time to time, in the

case of towns.

c. Article nine of the village law, as amended from time to time, in

the case of villages.

5. There may be paid into any fund:

a. Such an amount as may be provided therefor by budgetary

appropriation or raised by tax therefor.

b. Such revenues as are not required by law to be paid into any other

fund or account, including the proceeds from the sale of any capital

improvement or equipment owned by such county, city, village or town.

This provision shall not prevent the use of town highway moneys for the

establishment of a capital reserve fund, provided that such moneys are

expended therefrom for the purpose for which they were levied or

received, that the consent of the town superintendent of highways and

town board, together with the approval of the county superintendent of

highways, is given to the establishment thereof, and that such moneys

are only expended therefrom on order of the town superintendent of

highways upon audit and with the consent of the town board.

7. The moneys in each such fund shall be deposited and secured in the

manner provided by section ten of this article. The governing board or

the chief fiscal officer of such municipality, if the governing board

shall delegate such duty to him, may invest the moneys in each such fund

in the manner provided in section eleven of this article. Any interest

earned or capital gains realized on the moneys so deposited or invested

shall accrue to and become part of each such fund. The separate identity

of each such fund shall be maintained, whether its assets consist of

cash or investments or both.

8. An expenditure shall be made from a fund only by an authorization

of the governing board and for a specific capital improvement or a

specific item or specific items of equipment, the cost of which may be

financed therefrom. However, if a proposed expenditure is from a fund

established for a type of capital improvement or equipment and if it is

required by law that the authorization by such governing board of the

issuance of obligations for such capital improvement or equipment be

subject to a permissive or mandatory referendum, then the authorization

of such an expenditure shall be subject to a permissive referendum. In

the event that the authorization by such governing board of the issuance

of obligations for such capital improvement or equipment is required by

law to be subject to a permissive or mandatory referendum only if such

obligations are to have a maturity of more than five years or not less

than some other minimum period, then the authorization of such an

expenditure shall be subject to a permissive referendum only if the

period of probable usefulness of such capital improvement or equipment

is equal to or more than such minimum period of maturity. Such a

permissive referendum shall be governed in the manner provided in

paragraph four of this section. Notwithstanding any other provision of

this section, but subject to the provisions of this paragraph, if a

capital reserve fund has been established for a specific capital

improvement and it is later determined that a part of the cost of such

capital improvement is to be borne by assessments for benefit or ad

valorem taxes upon real property within an area of benefit within a

municipality, such fund may be expended to pay all or part of the share

to be borne by the municipality at large.

9. The governing board may authorize the transfer to the credit of

another capital reserve fund of all or part of:

a. The unexpended balance remaining in a fund established for a

specific capital improvement or a specific item or specific items of

equipment, which improvement has been completed or acquired, or which

equipment has been acquired, after deducting from such balance a sum

sufficient to satisfy all outstanding claims arising from the

construction, reconstruction or acquisition of such capital improvement

or the acquisition of such equipment.

b. The unexpended balance remaining in a fund established for a

specific item or specific items of equipment which have not been

acquired or a specific capital improvement which has not been completed

or acquired, or remaining in a fund established for a type of capital

improvement or a type of equipment. If the proposed transfer is from a

fund established for a specific capital improvement or a specific item

or specific items of equipment, the authorization of such transfer shall

be subject to a permissive referendum if the authorization of the

creation of a fund for such capital improvement or item or items of

equipment was subject to a permissive referendum. A permissive

referendum on the authorization of such transfer shall be governed in

the manner provided in paragraph four of this section.

c. Nothing in this subdivision shall be construed to authorize the

transfer to the credit of another capital reserve fund from a capital

reserve fund having a different tax base.

9-a. The governing board also may appropriate for:

1. An object or purpose for which bonds may be issued, or

2. The payment of interest on and principal of indebtedness, other

than indebtedness evidenced by bonds and notes described in paragraphs A

and D of section five of article eight of the state constitution, and

indebtedness for assessable improvements or renewals thereof,

all or part of the unexpended balance remaining in a fund established

for a specific capital improvement or specific item or items of

equipment. Any such appropriation may not be made unless the improvement

has been completed or acquired, or the equipment has been acquired, and

shall not include any moneys required to satisfy all outstanding claims

arising from the construction, reconstruction or acquisition of such

capital improvement or the acquisition of such equipment.

10. The chief fiscal officer shall keep a separate account for each

fund established. Such account shall show:

a. The date and amount of each sum paid into the fund.

b. The interest earned by such fund.

c. The capital gains or losses resulting from the sale of investments

of the fund.

d. The interest or capital gains which have accrued to the fund.

e. The amount and date of each withdrawal from the fund.

f. The assets of the fund, indicating the cash balance therein and a

schedule of the amounts invested in federal or state obligations.

The chief fiscal officer, at the termination of each fiscal year, shall

render a detailed report of the operation and condition of each of such

funds to the governing board.

11. The members of the governing board are hereby declared trustees of

such funds and shall be subject to all the duties and responsibilities

imposed by law on trustees, and such duties and responsibilities may be

enforced by the county, city, town or village, as the case may be, or by

any board, commission, agency, officer or taxpayer thereof.

12. The members of the governing board shall be guilty of a

misdemeanor if they:

a. Authorize a withdrawal from a fund for any purpose other than for a

capital improvement or an item or items of equipment, the cost of which

has been authorized to be financed in whole or in part from such fund.

b. Expend any money withdrawn from a fund for a purpose other than

that for which it was authorized to be withdrawn.

The provisions of this paragraph shall be considered to be in addition

to any other penalties provided by law.

13. Notwithstanding the foregoing provisions of this section, in any

town which is located wholly or partly within the Adirondack park and

has within its boundaries state lands subject to taxation assessed at

more than thirty per centum of the total taxable assessed valuation of

the town as determined from the assessment rolls of the town, as

completed from time to time, a capital reserve fund shall not be

established on and after May first, nineteen hundred forty-eight, unless

the state comptroller, on behalf of the state, shall consent thereto,

and, on and after May first, nineteen hundred forty-eight, in any such

town no expenditure or transfer shall be made from a capital reserve

fund heretofore or hereafter established unless the state comptroller,

on behalf of the state, shall consent thereto.

Repair reserve funds for municipal corporations, school

districts, district corporations and improvement districts. 1. The

governing board of any municipal corporation, school district, district

corporation, or town or county improvement district, may establish a

special fund which shall be known as the repair reserve fund of such

municipal corporation, school district, district corporation or

improvement district. There may be paid into such fund an amount as may

be provided therefor by budgetary appropriation or such revenues as are

not required by law to be paid into any other fund or account.

2. In cases of emergency, moneys in such fund may be expended pursuant

to a resolution approved by not less than two-thirds of the members of

the governing body of such municipal corporation, school district,

district corporation or improvement district providing that not less

than one-half of the moneys so expended shall be repaid in the fiscal

year immediately following the fiscal year in which such moneys were

expended and the total amount shall be repaid not later than the last

day of the second fiscal year succeeding the fiscal year in which the

moneys were expended.

Prior to the adoption of any other resolution, act, ordinance or local

law by the governing board of such municipal corporation, school

district, district corporation or improvement district, appropriating

money from such fund, the governing board shall cause to be published in

the official newspaper or newspapers, if any, or otherwise in a

newspaper or newspapers designated for such purpose, a notice stating in

substance that it is proposed to appropriate a specified amount from the

repair reserve fund for a particular purpose, and that a public hearing

on such proposed appropriation will be held at a time and place stated

therein. At least five days shall elapse between the publication of such

notice and the date specified for the hearing. The hearing shall be held

at the time and place so specified.

3. Moneys in such fund may be appropriated only:

a. For repairs of capital improvements or equipment, which repairs are

of a type not recurring annually or at shorter intervals.

b. In the case of a municipal corporation, to a capital reserve fund

established pursuant to section six-c of this article or to a

contingency and tax stabilization reserve fund established pursuant to

section six-e of this article.

c. In the case of a fire district, to a capital reserve fund

established pursuant to section six-g.

d. In the case of a school district, to a reserve fund established

pursuant to section thirty-six hundred fifty-one of the education law.

4. The moneys in such fund shall be deposited and secured in the

manner provided by section ten of this article. The moneys in such fund

so deposited shall be accounted for separate and apart from all other

funds of the municipal corporation, school district, district

corporation or improvement district, in the same manner as provided in

subdivision ten of section six-c of this article. The governing board or

the chief fiscal officer of such municipal corporation, school district,

district corporation or improvement district, if the governing board

shall delegate such duty to him, may invest the moneys in such fund in

the manner provided in section eleven of this article. Any interest

earned or capital gains realized on the moneys so deposited or invested

shall accrue to and become part of such fund.

5. The members of the governing board of such municipal corporation,

school district, district corporation or improvement district are hereby

declared trustees of such fund and shall be subject to all the duties

and responsibilities imposed by law on trustees, and such duties and

responsibilities may be enforced by such municipal corporation, school

district, district corporation or improvement district, as the case may

be, or by any board, commission, agency, officer or taxpayer thereof.

6. The members of the governing board of such municipal corporation,

school district or district corporation shall be guilty of a misdemeanor

if they:

a. Authorize a withdrawal from a repair reserve fund for any other

purpose except as provided in this section.

b. Expend any money withdrawn from a repair reserve fund for a purpose

other than that as provided in this section.

7. Notwithstanding the foregoing provisions of this section, in any

town which is located wholly or partly within the Adirondack park and

has within its boundaries state lands subject to taxation assessed at

more than thirty per centum of the total taxable assessed valuation of

town as determined from the assessment rolls of the town as completed

from time to time, or in any district corporation or improvement

district situated in whole or in part in any such town, a repair reserve

fund shall not be established unless the state comptroller, on behalf of

the state, shall consent thereto, and in any such town or district

corporation or improvement district no appropriation shall be made from

a repair reserve fund unless the state comptroller, on behalf of the

state, shall consent thereto.

8. Moneys of a municipal corporation, school district or district

corporation which, upon June thirtieth, nineteen hundred fifty,

constitute a repair reserve fund of such municipal corporation, school

district or district corporation, shall continue to so constitute a

special fund and be known as the repair reserve fund of such municipal

corporation, school district or district corporation. From and after

such date, payments to, and appropriations from, such fund shall be

subject to the foregoing provisions of this section.

Contingency and tax stabilization reserve fund for municipal

corporations. 1. As used in this section:

a. "Annual budget" means the annual budget or estimate, as finally

adopted, of a municipal corporation which is required by law to adopt an

annual budget or estimate of the expenditures to be made for a fiscal

year for the general support or for the expenses of the government of

such municipal corporation during such fiscal year.

b. "Base year" means the most recent fiscal year for which an annual

report has been filed with the state comptroller pursuant to section

thirty of this chapter.

c. "Chief executive officer" means a chief executive officer as

defined in paragraph five-a of section 2.00 of the local finance law.

d. "Chief fiscal officer" means a chief fiscal officer as defined in

paragraph five of section 2.00 of the local finance law.

e. "Eligible portion of the annual budget" means:

(1) in the case of a contingency and tax stabilization reserve fund

established for a county, city, village or fire district, the general

fund portion of the annual budget;

(2) in the case of a contingency and tax stabilization reserve fund

established for a town, the town-wide general fund and highway fund

portions of the annual budget; and

(3) in the case of a contingency and tax stabilization reserve fund

established for the part of a town outside any villages, the general

fund and highway fund portions of the annual budget for such part of the

town.

f. "Estimated revenue" means revenue from a specific source which is

expected to be received during a fiscal year and which is included in

the annual budget as finally adopted for that fiscal year.

g. "Governing board" means a governing board as defined in section two

of this chapter and, in the case of a fire district, shall mean the

board of fire commissioners.

h. "Municipal corporation" means a municipal corporation as defined in

section two of this chapter and shall also include a fire district.

i. "Public emergency" means an epidemic, conflagration, riot, storm,

flood or other sudden, unforeseen or unexpected occurrence or condition

which requires the immediate expenditure of moneys to protect the public

health, safety or welfare of the inhabitants of the municipal

corporation.

j. "Tentative budget" means the tentative budget prepared pursuant to

section three hundred fifty-four of the county law, section one hundred

six of the town law or section 5-504 of the village law, the statement

of expenditures prepared pursuant to section one hundred eighty-one of

the town law, or similar document prepared pursuant to general, special

or local law.

k. "Unanticipated expenditure" means an expenditure for a specific

purpose for which there is no or insufficient appropriation or which

will cause an appropriation to be insufficient that is necessitated by a

change in federal or state laws, rules or regulations, a court order,

judgement or decree, a public emergency, or an industry-wide price, rate

or premium increase, which takes effect or occurs after final adoption

of the annual budget and which could not have been reasonably

anticipated prior to final adoption of the annual budget.

l. "Unanticipated revenue loss" means estimated revenue which is

rendered unreceivable because of a change in federal or state laws,

rules or regulations, a court order, judgement or decree, or other

circumstance, which takes effect or occurs after final adoption of the

annual budget and which could not have been reasonably anticipated prior

to final adoption of the annual budget.

m. "Unappropriated unreserved fund balance" means the difference

between the total assets for a fund and the total liabilities, deferred

revenues, encumbered appropriations, amounts appropriated for the

ensuing fiscal year's budget, and amounts reserved for stated purposes

pursuant to law, including reserve funds established pursuant to the

general municipal law for the fund, as determined through application of

the system of accounts prescribed by the state comptroller pursuant to

section thirty-six of this chapter.

n. "Voting strength" means the aggregate number of votes which all the

members of the governing board are entitled to cast.

2. The governing board of any municipal corporation, by resolution

subject to a permissive referendum, may establish a contingency and tax

stabilization reserve fund for the municipal corporation and, in the

case of a town, also for the part of the town outside any villages. Such

permissive referendum shall be governed by:

a. in the case of a county, sections one hundred one through one

hundred three of the county law;

b. in the case of a city, sections twenty-four through twenty-six of

the municipal home rule law;

c. in the case of a town or the part of a town outside any villages,

article seven of the town law;

d. in the case of a village, article nine of the village law; and

e. in the case of a fire district, subdivision four of section six-g

of this article.

3. There may be paid into the contingency and tax stabilization

reserve fund such amounts as may be provided therefor by budgetary

appropriation, unappropriated unreserved fund balance in the eligible

portion of the annual budget, and such revenues as are not required by

law to be paid into any other fund or account; provided, however, that

no amount may be appropriated for payment into a contingency and tax

stabilization reserve fund which would cause the balance of the fund to

exceed ten percent of the eligible portion of the annual budget for the

fiscal year for which the appropriation would be made.

4. a. The moneys in a contingency and tax stabilization reserve fund

may be expended only pursuant to an appropriation for a purpose

authorized by this subdivision. Except as provided in paragraph e of

this subdivision, such an appropriation shall be made only upon the

recommendation of the chief executive officer and the adoption of a

resolution appropriating the recommended amount by at least two-thirds

of the voting strength of the governing board.

b. The moneys in a contingency and tax stabilization reserve fund may

be used to finance an unanticipated revenue loss chargeable to the

eligible portion of the annual budget, subject to the following

limitations:

(1) the maximum amount of moneys in the fund that may be used to

finance an unanticipated revenue loss shall equal either the amount of

the revenue actually received for the base year or the amount of the

estimated revenue for the current fiscal year, whichever is less, minus

the amount of the revenue actually received for the current fiscal year;

and

(2) the moneys in the fund may be used only to finance that portion of

the unanticipated revenue loss which, as a matter of law, cannot be

financed with amounts available in any other account or fund.

c. The moneys in a contingency and tax stabilization reserve fund may

be used to finance an unanticipated expenditure chargeable to the

eligible portion of the annual budget, subject to the following

limitations:

(1) the maximum amount of moneys in the fund that may be used to

finance an unanticipated expenditure shall equal the sum of the amount

of the unanticipated expenditure and the amount appropriated for that

purpose for the current fiscal year minus either the amount appropriated

for that purpose for the current fiscal year or the actual expenditure

for the same purpose in the base year, whichever is greater; and

(2) the moneys in the fund may be used only to finance that portion of

an unanticipated expenditure which, as a matter of law, cannot be

financed with amounts available in any other account or fund.

d. The moneys in the contingency and tax stabilization reserve fund

may be used to lessen or prevent any projected increase in excess of two

and one-half percent in the amount of the real property tax levy needed

to finance the eligible portion of the annual budget for the next

succeeding fiscal year. The maximum amount of moneys in the fund that

may be used for this purpose shall equal the difference between the

projected amount of such real property tax levy and one hundred two and

one-half percent of the amount of the real property tax levy needed to

finance the eligible portion of the annual budget for the current fiscal

year.

e. When preparing the tentative budget of a municipal corporation, if

the current balance of a contingency and tax stabilization reserve fund,

as shown by the statement of the chief fiscal officer required by

subdivision six of this section, exceeds ten percent of the eligible

portion of the annual budget for the current fiscal year, such excess

shall be used to reduce the amount of real property taxes needed to

finance the eligible portion of the annual budget for the next

succeeding fiscal year.

5. The moneys in the contingency and tax stabilization reserve fund

shall be deposited in one or more of the banks or trust companies

designated, in the manner provided by law, as depositories of the funds

of such municipal corporation. The governing board, or the chief fiscal

officer having custody of such money of such municipal corporation, if

the governing board shall delegate such duty to him, may invest the

moneys in such fund in obligations specified in section eleven of this

article. Any interest earned or capital gain realized on the money so

deposited or invested shall accrue to and become part of such fund.

6. The chief fiscal officer shall account for the contingency and tax

stabilization reserve fund separate and apart from all other funds of

the municipal corporation. Such accounting shall show: the source, date

and amount of each sum paid into the fund; the interest earned by such

fund; capital gains or losses resulting from the sale of investments of

the fund; the order, source thereof, date and amount of each

appropriation from this fund; the assets of the fund, indicating cash

balance and a schedule of investments. Not later than sixty days after

the start of each fiscal year and at such times as may be required by

the governing board, the chief fiscal officer shall furnish to the

governing board a detailed report of the operation and condition of the

fund during the preceding fiscal year which shall include a statement of

receipts and disbursements, and a statement of the balance of the fund

as of the last day of such preceding fiscal year and such other dates as

may be specified by the governing board. Not later than thirty days

prior to the last date provided by law for the filing of the tentative

budget, the chief fiscal officer shall furnish to the officer or body

responsible for preparing the tentative budget a statement of the

current balance of the fund.

7. The members of the governing board are hereby declared trustees of

the moneys in the contingency and tax stabilization reserve fund and

shall be subject to all duties and responsibilities imposed by law on

trustees, and such duties and responsibilities may be enforced by the

municipal corporation or by any board, commission, agency, officer or

taxpayer thereof.

8. Any officer of a municipal corporation shall be guilty of a

misdemeanor if he or she willfully and knowingly causes the municipal

corporation to:

a. Appropriate moneys from the contingency and tax stabilization

reserve fund for any purpose not authorized by this section.

b. Expend any money from the contingency and tax stabilization reserve

fund for a purpose other than that for which it was appropriated.

The provisions of this subdivision shall be considered to be in addition

to any other penalties provided by law.

* 4. Moneys in such fund shall be deposited and secured in the manner

provided by section ten of this article. The moneys in such fund so

deposited shall be kept in a separate bank account. The governing board

or the chief fiscal officer of such municipality, if the governing board

shall delegate such duty to him, may invest the moneys in such fund in

the manner provided in section eleven of this article. Any interest

earned or capital gains realized on the moneys so deposited or invested

shall accrue to and become part of such fund. Such board or officer

shall incur no personal liability on account of any investment made

pursuant to the provisions of this section.

* NB sb. 4 amended by Ch. 708/92, § 3 is to former section 6-E -

repealed Ch. 655/92

Snow and ice removal and road repair reserve funds for

municipal corporations. 1. The governing board of any municipal

corporation may establish a special fund which shall be known as the

snow and ice removal and road repair reserve fund of such municipal

corporation. There may be paid into such fund an amount as may be

provided therefor by budgetary appropriation or such revenues as are not

required by law to be paid into any other fund or account.

2. In cases of emergency, moneys in such fund may be expended pursuant

to a resolution approved by not less than two-thirds of the members of

the governing body of such municipal corporation providing that not less

than one-half of the moneys so expended shall be repaid in the fiscal

year immediately following the fiscal year in which such moneys were

expended and the total amount shall be repaid not later than the last

day of the second fiscal year succeeding the fiscal year in which the

moneys were expended. Prior to the adoption of any other resolution,

act, ordinance or local law by the governing board of such municipal

corporation, appropriating money from such fund, the governing board

shall cause to be published in the official newspaper or newspapers, if

any, or otherwise in a newspaper or newspapers designated for such

purpose, a notice stating in substance that it is proposed to

appropriate a specified amount from the snow and ice removal and road

repair reserve fund for a particular purpose, and that a public hearing

on such proposed appropriation will be held at a time and place stated

therein. At least five days shall elapse between the publication of such

notice and the date specified for the hearing. The hearing shall be held

at the time and place so specified.

3. Moneys in such fund may be appropriated only:

a. For the removal of snow and ice from the public thoroughfares and

public places of such municipal corporation, which removal is of a type

not likely to recur annually or at shorter intervals.

b. For repairing and maintaining roadways to the extent damage to such

roadways was caused by the removal of snow and ice, including but not

limited to repairing potholes and other road surface maintenance, which

repairs and maintenance are of a type not likely to recur annually or at

shorter intervals.

c. To a capital reserve fund established pursuant to section six-c, to

a repair reserve fund established pursuant to section six-d or to a tax

stabilization reserve fund established pursuant to section six-e of this

article.

4. The moneys in such fund shall be deposited and secured in the

manner provided by section ten of this article. The moneys in such fund

so deposited shall be accounted for separate and apart from all other

funds of the municipal corporation, in the same manner as provided in

subdivision ten of section six-c of this article. The governing board or

the chief fiscal officer of such municipal corporation, if the governing

board shall delegate such duty to him, may invest the moneys in such

fund in the manner provided in section eleven of this article. Any

interest earned or capital gains realized on the moneys so deposited or

invested shall accrue to and become part of such fund.

5. The members of the governing board of such municipal corporation

are hereby declared trustees of such fund and shall be subject to all

the duties and responsibilities imposed by law on trustees, and such

duties and responsibilities may be enforced by such municipal

corporation or by any board, commission, agency, officer or taxpayer

thereof.

6. The members of the governing board of such municipal corporation

shall be guilty of a misdemeanor if they:

a. Authorize a withdrawal from a snow and ice removal and road repair

reserve fund for any other purpose except as provided in this section.

b. Expend any money withdrawn from a snow and ice removal and road

repair reserve fund for a purpose other than that as provided in this

section.

7. Notwithstanding the foregoing provisions of this section, in any

town which is located wholly or partly within the Adirondack park and

has within its boundaries state lands subject to taxation assessed at

more than thirty per centum of the total taxable assessed valuation of

the town as determined from the assessment rolls of the town as

completed from time to time, or in any district corporation or

improvement district situated in whole or in part in any such town, a

snow and ice removal and road repair reserve fund shall not be

established unless the state comptroller, on behalf of the state, shall

consent thereto, and in any such town or district corporation or

improvement district no appropriation shall be made from a snow and ice

removal and road repair reserve fund unless the state comptroller, on

behalf of the state, shall consent thereto.

Capital reserve funds for fire districts. 1. As used in this

section:

a. The term "capital improvement" shall mean:

(1) Any physical betterment or improvement or any preliminary studies

and surveys relative thereto.

(2) Land or rights in land.

(3) Any furnishings, equipment, machinery or apparatus for any

physical public betterment or improvement acquired at the time when such

betterment or improvement is constructed, reconstructed or acquired.

b. The term "equipment" shall include any equipment, machinery or

apparatus not included in the definition of the term "capital

improvement" and for the acquisition of which a period of probable

usefulness has been provided by law.

c. The term "obligations" shall include bonds, notes, certificates or

other evidences of indebtedness.

2. The board of fire commissioners of any fire district may establish

capital reserve funds for the financing of all or a part of the cost of:

a. The construction, reconstruction or acquisition of a specific

capital improvement or the acquisition of a specific item or specific

items of equipment.

b. The construction, reconstruction or acquisition of a type of

capital improvement or the acquisition of a type of equipment.

3. If the board of fire commissioners authorizes the establishment of

a capital reserve fund for the financing of all or part of the cost of

the construction, reconstruction or acquisition of a specific capital

improvement or the acquisition of a specific item or specific items of

equipment, it shall set forth in such authorization the estimated

maximum cost thereof.

4. Any resolution of the board of fire commissioners authorizing the

establishment of a reserve fund shall not take effect until approved by

the affirmative vote of a majority of the electors of such fire district

affected, qualified to vote at an annual election of fire district

officers, voting on such proposition. Any special election shall be held

in the manner provided in section one hundred seventy-nine of the town

law, as amended from time to time.

A proposition for the submission of any such resolution of the board

of fire commissioners to the approval of the said qualified electors

pursuant to this section, shall contain an abstract of such resolution

concisely stating the purposes and effect thereof. The fire district

secretary shall prepare such abstract with the advice of the attorney

for the fire district, if there be one, and forthwith transmit the

proposition to the board of fire commissioners in the form in which it

is to be submitted at such annual or special election of such fire

district. If there be more than one such proposition to be voted upon at

such election, each proposition shall be separately and consecutively

numbered.

5. There may be paid into any such capital reserve fund:

a. Such an amount as may be provided therefor in the annual budget of

the fire district adopted pursuant to section one hundred eighty-one of

the town law or pursuant to section one hundred eighty-one-a of the town

law.

b. Such revenues as are not required by law to be paid into any other

fund or account, including the proceeds from the sale of any capital

improvement or equipment owned by such fire district.

6. The moneys in each such capital reserve fund shall be deposited and

secured in the manner provided by section ten of this article. The board

of fire commissioners or the fire district treasurer of such fire

district, if the board of fire commissioners shall delegate such duty to

him, may invest the moneys in each such fund in the manner provided in

section eleven of this article. Any interest earned or capital gains

realized on the moneys so deposited or invested shall accrue to and

become part of each such fund. The separate identity of each such fund

shall be maintained, whether its assets consist of cash or investments

or both.

7. An expenditure from a reserve fund shall be made only upon

authorization by the board of fire commissioners and for a specific

capital improvement or a specific item or specific items of equipment,

the cost of which may be financed therefrom. However, if a proposed

expenditure is from a fund established for a type of capital improvement

or equipment and if it is required by law that the authorization by such

board of fire commissioners of the issuance of obligations for such

capital improvement or equipment be subject to a permissive or mandatory

referendum, then the authorization of such an expenditure shall be

subject to a permissive referendum. Within ten working days after the

adoption by a board of fire commissioners of a resolution described in

this section as being subject to a permissive referendum, the fire

district secretary, in the same manner as provided for notice of annual

elections, shall publish a notice which shall set forth the date of the

adoption of the resolution and contain an abstract of such resolution

concisely stating the purposes and effect thereof. The notice shall

specify that such resolution was adopted subject to a permissive

referendum. Any such resolution of the board of fire commissioners shall

not take effect until thirty days after its adoption; nor until approved

by the affirmative vote of a majority of the electors of such fire

district affected, qualified to vote at an annual election of fire

district officers, voting on such proposition, if within thirty days

after its adoption there be filed with the fire district secretary a

petition signed and acknowledged or proved in the same manner as a deed

to be recorded, by resident taxpayers of such fire district, owning

taxable real property aggregating at least one-quarter of the assessed

valuation of all the taxable real property of the fire district as such

valuations appear upon the latest completed assessment roll of the town

or towns in which said fire district is located, protesting against such

resolution and requesting that it be submitted to the qualified electors

of the fire district affected for their approval or disapproval. If such

petition be so filed not more than forty-five days nor less than thirty

days prior to an annual election of fire district officers, a

proposition for the approval of such resolution shall be submitted at

such annual election of fire district officers. If a petition be so

filed at any other time, a proposition for the approval of such

resolution shall be submitted at a special fire district election to be

held not more than forty days after the filing of such petition. If,

within five days after the filing of such petition, a written objection

thereto be filed with the fire district secretary, and a verified

petition setting forth the objections be presented by the person so

filing such objections to the supreme court or any justice thereof of

the judicial district in which such fire district or any part thereof is

located, such court or justice within twenty days shall determine any

question arising thereunder and make such order as justice may require.

Such proceeding shall be heard and determined in the manner prescribed

by section 16-116 of the election law. A proposition for the submission

of any such resolution of the board of fire commissioners to the

approval of the said qualified electors pursuant to this section, shall

contain an abstract of such resolution concisely stating the purposes

and effect thereof. The fire district secretary shall prepare such

abstract with the advice of the attorney for the fire district, if there

be one, and forthwith transmit the proposition to the board of fire

commissioners in the form in which it is to be submitted at such annual

or special election of such fire district. If there be more than one

such proposition to be voted upon at such election, each proposition

shall be separately and consecutively numbered.

8. The board of fire commissioners may authorize the transfer to the

credit of another capital reserve fund of such fire district all or part

of:

a. The unexpended balance remaining in a fund established pursuant to

this section for a specific capital improvement or a specific item or

specific items of equipment, which improvement has been completed or

acquired, or which equipment has been acquired, after deducting from

such balance a sum sufficient to satisfy all outstanding claims arising

from the construction, reconstruction or acquisition of such capital

improvement or the acquisition of such equipment.

b. The unexpended balance remaining in a fund established pursuant to

this section for a specific item or specific items of equipment which

have not been acquired or a specific capital improvement which has not

been completed or acquired, or remaining in a fund established pursuant

to this section for a type of capital improvement or a type of

equipment. If the proposed transfer is from a fund established for a

specific capital improvement or a specific item or specific items of

equipment, the authorization of such transfer shall be subject to a

permissive referendum if the authorization of the creation of a fund for

such capital improvement or item or items of equipment was subject to a

permissive referendum. A permissive referendum on the authorization of

such transfer shall be governed in the manner provided in subdivision

seven of this section.

9. The fire district treasurer shall keep a separate account for each

fund established. Such account shall show:

a. The date and amount of each sum paid into the fund.

b. The interest earned by such fund.

c. The capital gains or losses resulting from the sale of investments

of the fund.

d. The interest or capital gains which have accrued to the fund.

e. The amount and date of each withdrawal from the fund.

f. The assets of the fund, indicating the cash balance therein and a

schedule of the amounts invested in federal or state obligations. The

fire district treasurer, at the termination of each fiscal year, shall

render a detailed report of the operation and condition of each of such

funds to the board of fire commissioners.

10. The members of the board of fire commissioners are hereby declared

trustees of such funds and shall be subject to all the duties and

responsibilities imposed by law on trustees, and such duties and

responsibilities may be enforced by the fire district or by any board,

commission, agency, officer or taxpayer thereof.

11. The members of the board of fire commissioners shall be guilty of

a misdemeanor if they:

a. Authorize a withdrawal from a fund for any purpose other than for a

capital improvement or an item or items of equipment, the cost of which

has been authorized to be financed in whole or in part from such fund.

b. Expend any money withdrawn from a fund for a purpose other than

that for which it was authorized to be withdrawn.

The provisions of this subdivision shall be considered to be in

addition to any other penalties provided by law.

12. The board of water commissioners of a water district to which the

provisions of article thirteen of the town law apply, and which has the

powers of the fire district commissioners as provided in subdivisions

nine to twenty-four, inclusive, of section one hundred seventy-six of

the town law, may establish capital reserve funds as in this section

provided for the financing of all or a part of the cost of capital

improvements and equipment for fire department and fire protection

purposes, in the same manner and to the same extent that the board of

fire commissioners of a fire district may establish capital reserve

funds for such purposes, and all of the provisions of this section shall

apply in relation to the financing of all or a part of such capital

improvements or equipment, and all references in this section to a fire

district shall be deemed to refer to such water district, and all

references herein to a fire district secretary or treasurer shall be

deemed to refer to the secretary or treasurer of such board of water

commissioners, except that if such board of water commissioners does not

have a treasurer the provisions relating to the fire district treasurer

shall be deemed to refer to the supervisor of the town in which such

water district is located.

13. Notwithstanding the foregoing provisions of this section, if any

such fire district is situated in whole or in part in a town which is

wholly or partly within the Adirondack park and has within the town

boundaries state lands subject to taxation assessed at more than thirty

per centum of the total taxable assessed valuation of the town as

determined from the assessment rolls of the town, as completed from time

to time, a capital reserve fund for the fire district shall not be

established on and after May first, nineteen hundred forty-eight, unless

the state comptroller, on behalf of the state, shall consent thereto,

and, on and after May first, nineteen hundred forty-eight, in any such

fire district so located, no expenditure or transfer shall be made from

a capital reserve fund heretofore or hereafter established unless the

state comptroller, on behalf of the state, shall consent thereto.

Reserve fund for payment of bonded indebtedness in counties,

cities, villages, towns and fire districts. 1. As used in this section,

the term "governing board," in so far as it is used in reference to a

county, shall mean the board of supervisors thereof; in so far as it is

used in reference to a city, shall mean the "local legislative body"

thereof, as that term is defined in subdivision seven of section two of

the municipal home rule law, as amended from time to time; in so far as

it is used in reference to a village, shall mean the board of trustees

thereof; in so far as it is used in reference to a town, shall mean the

town board thereof; in so far as it is used in reference to a fire

district, shall mean the board of fire commissioners.

2. The governing board of any county, city, village, town or fire

district may by resolution adopted by a majority vote of its governing

body establish a reserve fund for the payment of its bonded indebtedness

as herein described, provided, however, that such debt reserve fund

shall not be established for, or moneys therein used to pay, any

obligations payable in the first instance from assessments, or from

taxes levied upon an area in such county, city, village, town or fire

district smaller than the area of such county, city, village, town or

fire district.

3. Such fund may be established for the payment of one or of several

issues of bonds of such municipality or the purchase of the same.

4. There may be paid into such fund:

a. Such an amount as may be provided therefor by budgetary

appropriation.

b. Such revenues as are not otherwise appropriated or required by law

to be paid into any other fund or account.

5. An expenditure from such a reserve fund may only be made by

appropriation pursuant to a resolution of the governing board of the

municipal corporation or fire district establishing the same and only

for the payment of the principal and interest on bonds issued by such

municipal corporation or fire district and forming a part of an issue

having a maximum maturity of not less than five years; or for the

purchase of bonds of such municipal corporation or fire district forming

a part of an issue having a maximum maturity of not less than five years

at a price not to exceed the par value thereof and accrued interest to

the date of delivery of such bonds to such municipal corporation or fire

district, provided, however, that if any such bonds were issued subject

to the right of such municipal corporation or fire district to redeem

the same prior to the maturity date thereof then such purchase may be

made for the redemption of such bonds at the price and on the terms

stated in such bonds or in the proceeding authorizing the same as the

case may be.

Where provision has been made in the current budget from funds other

than a reserve fund for the payment of the principal and interest on

bonds or the purchase thereof, no expenditure may be made for the

purchase or payment of the same from such a reserve fund during the

current fiscal year for which such budget was adopted.

All expenditures from such fund as provided in this subdivision may

only be made by the chief fiscal officer of the municipal corporation or

fire district establishing the same.

Any such bonds so paid, purchased or redeemed and any interest coupons

representing unmatured interest attached thereto shall be cancelled and

destroyed by the chief fiscal officer of such municipal corporation or

fire district establishing such fund who shall make a notation of such

cancellation and destruction in the bond register of such municipal

corporation or fire district. Such notation shall describe each such

bond by title, date of issue, number, denomination and date of maturity,

and if coupons are attached thereto by number, face value and date of

maturity.

6. The governing board of a municipal corporation may, subject to a

permissive referendum, authorize the transfer of a portion or all of

such reserve to a capital reserve fund established pursuant to section

six-c of the general municipal law.

The board of fire commissioners of a fire district may, subject to the

approval of the voters at a regular or special election in such

district, in the manner provided in section one hundred seventy-nine of

the town law, authorize the transfer of a portion or all of such reserve

to a capital reserve fund established pursuant to section six-g hereof.

7. The chief fiscal officer shall keep a separate account for each

fund established. Such account shall show:

a. The date and amount of each sum paid into the fund.

b. The interest earned by such fund.

c. The capital gains or losses resulting from the sale of investments

of the fund.

d. The interest or capital gains which have accrued to the fund.

e. The amount and date of each withdrawal from the fund.

f. The assets of the fund, indicating the cash balance therein and a

schedule of the amounts invested. The chief fiscal officer at the

termination of each fiscal year shall render a detailed report of the

operation and condition of each of such funds to the governing board.

8. The members of the governing board are hereby declared trustees of

such funds and shall be subject to all the duties and responsibilities

imposed by law on trustees, and such duties and responsibilities may be

enforced by the county, city, village, town or fire district, as the

case may be, or by any board, commission, agency, officer or taxpayer

thereof.

9. The moneys in each such fund shall be deposited and secured in the

manner provided by section ten of this article. The governing board or

the chief fiscal officer of such municipal corporation or fire district,

if the governing board shall delegate such duty to him, may invest the

moneys in each such fund in the manner provided in section eleven of

this article. Any interest earned or capital gains realized on the

moneys so deposited or invested shall accrue to and become a part of

each such fund. The separate identity of each such fund shall be

maintained whether its assets consist of cash, investments, or both.

10. The members of the governing board shall be guilty of a

misdemeanor if they:

a. Authorize a withdrawal from a fund for any other purpose except as

provided in this section.

b. Expend any money withdrawn from a fund for a purpose other than

that as provided in this section.

11. Notwithstanding the foregoing provisions of this section, in any

town which is located wholly or partly within the Adirondack park and

has within its boundaries state lands subject to taxation assessed at

more than thirty percentum of the total taxable assessed valuation of

the town as determined from the assessment rolls of the town, as

completed from time to time, a reserve fund for the payment of bonded

indebtedness shall not be established on and after May first, nineteen

hundred forty-eight, unless the state comptroller, on behalf of the

state, shall consent thereto, and, on and after May first, nineteen

hundred forty-eight, in any such town no expenditure or transfer from

any such fund heretofore or hereafter established shall be made unless

the state comptroller, on behalf of the state, shall consent thereto.

Airport development and amortization funds. a. There shall be a

fund set up for each airport acquired, constructed or maintained by a

municipal corporation, which fund shall be known as the

"................ airport development fund". There shall be paid into

such fund all payments for leases, permits or other privileges at such

airport, received prior to its construction or to the commencement of

its operation. All moneys paid into such fund shall be used solely for

the acquisition, construction or physical development of such airport.

b. There shall be a fund set up for each airport hereafter acquired or

constructed by a municipal corporation, which fund shall be known as the

"................ airport amortization fund". There shall be paid into

such fund all revenues derived from the operation of such airport except

parking fees, sightseeing fees and rentals derived from leases of real

property at such airport not used exclusively for air transportation

operations. The moneys paid into such fund shall be applied to the

payment of interest on and the retirement of any outstanding

indebtedness incurred for the acquisition and construction of such

airport but any balance remaining beyond the amount required for such

purposes shall be paid into the general fund of such municipal

corporation for general municipal purposes.

Workmen's compensation reserve fund. 1. The governing board of

any municipal corporation, school district or fire district, which is,

or shall hereafter become a self-insurer under the provisions of

subdivision four of section fifty of the workers' compensation law or

section thirty of the volunteer firefighters' benefit law may establish

a reserve fund to be known as the workers' compensation reserve fund of

such municipal corporation, school district or fire district.

2. There may be paid into any such fund (a) such amounts as may be

provided therefor by budgetary appropriations and (b) such other sums as

may be legally appropriated.

3. The moneys in such fund shall be deposited and secured in the

manner provided by section ten of this article. The money in such fund

so deposited shall be accounted for separate and apart from all other

funds of the municipality, school district or fire district, in the same

manner as provided in subdivision ten of section six-c of this article.

The governing board, or the chief fiscal officer of such municipality,

school district or fire district, if the governing board shall delegate

such duty to him, may invest the moneys in such fund in the manner

provided in section eleven of this article. Any interest earned or

capital gain realized on the money so deposited or invested shall accrue

to and become part of such fund. The separate identity of such fund

shall be maintained whether its assets consist of cash or investments or

both.

4. An expenditure shall be made from such fund only for the payment of

compensation and benefits, medical, hospital or other expense authorized

by article two of the workers' compensation law and by the volunteer

firefighters' benefit law and expenses of administering the

self-insurance program for such municipal corporation, school district

or fire district.

5. If at the end of any fiscal year the moneys in such fund shall

exceed the amounts required to be paid pursuant to subdivision four of

this section plus any additional amount required to pay all pending

claims, the governing board of the municipal corporation, school

district, board of cooperative educational services or fire district

may, within sixty days of the close of such fiscal year, elect to: (a)

transfer said excess, or any part thereof, to any fund authorized by

this article or section thirty-six hundred fifty-one of the education

law; and/or (b) apply said excess, or any part thereof to the budget

appropriation of the next succeeding fiscal year.

6. If the municipal corporation, school district or fire district

shall, after the establishment of such fund, cease to be a self-insurer,

the moneys remaining in such fund may be transferred to any other fund

authorized by this chapter or section thirty-six hundred fifty-one of

the education law only to the extent that the moneys in such fund shall

exceed in amount the sum sufficient to pay all expenditures authorized

in paragraph numbered four, both accrued and contingent.

Electric utility depreciation reserve funds. The governing

board of any municipal corporation operating an electric public utility

service shall establish solely by appropriations from the revenues of

such service, a depreciation reserve fund, the assets of which shall be

used solely for, and for no other purpose than, the improvement,

extension, or replacement of such service, or the payment of

indebtedness incurred in relation to the construction, improvement,

extension or replacement of such service, except as otherwise provided

in section 123.00 of the local finance law and section eight of this

article. Such governing board shall require that out of the revenues of

such service there shall be deposited in the reserve fund, annually,

quarterly, or monthly in its discretion, the amounts entered in the

depreciation reserve account of such service as the depreciation

accruals for any such period. A depreciation reserve account is an

account in which the original cost of the service is being distributed

to expenses in substantially equal annual, quarterly or monthly amounts

during the expected service life of the component parts of the service,

by direction of the public service commission. The moneys in the fund

shall be deposited and secured in the manner provided by section ten of

this article. The governing board, or the chief fiscal officer of such

municipal corporation if the governing board shall delegate such duty to

him, may invest the moneys of such fund in the manner provided in

section eleven of this article. Any interest earned or capital gains

realized on the moneys so deposited or invested shall accrue to and

become part of the fund. The separate identity of the fund shall be

maintained whether its assets consist of cash or investments or both.

Mandatory reserve fund for municipal corporations, fire

districts and school districts. 1. As used in this section, the term

"governing board," in so far as it is used in reference to a municipal

corporation, shall mean the "legislative body" thereof, as that term is

defined in section two of the municipal home rule law, as amended from

time to time; in so far as it is used in reference to a fire district,

shall mean the board of fire commissioners thereof; in so far as it is

used in reference to a school district, shall mean the board of trustees

thereof.

2. Notwithstanding any other provision of this chapter, upon the cash

sale by a municipal corporation, fire district or school district of a

capital improvement, as defined in section six-c of this chapter, for

the cost of which obligations were issued pursuant to the local finance

law, and when all or part of such indebtedness is outstanding at the

time of such sale, a mandatory reserve fund shall be established for the

purpose of retiring such obligations, or, as an additional alternative,

paying principal of, or redemption premiums in connection with such

obligations or other obligations of at least equal weighted average

life; provided however, that, if the proceeds of the sale are used or

set aside to be used (i) to pay or provide for the construction,

reconstruction, acquisition or installation of capital improvements or

equipment, as defined in section six-c of this chapter, or (ii) for the

payment of principal of, or redemption premiums in connection with, any

outstanding obligations issued by the municipal corporation, fire

district or school district to finance such capital improvements or

equipment, in an amount not less than the lesser of such proceeds or the

principal amount of the indebtedness outstanding on the capital

improvement sold, then such fund need not be established; provided,

however, that if such amount to be so used, together with any other

amounts so used pursuant to this sentence in the same fiscal year of

such municipal corporation, fire district or school district, would

exceed one percent of the limit prescribed by section 104.00 of the

local finance law, then such fund shall nevertheless be established; and

provided further, that a municipal corporation, fire district or school

district shall within thirty days after the use of such proceeds

pursuant to clause (i) herein, file a report with the state comptroller

identifying: (a) the asset sold, (b) the amount of net proceeds from

such sale, (c) the amount to be paid or provided pursuant to such clause

(i), and (d) the capital improvements or equipment to be so paid for or

provided. When a municipal corporation, fire district or school district

has outstanding indebtedness incurred to finance the cost of such a

capital improvement, federal and state aid received on account of such

improvement, to the extent that it is not applied directly to the

payment of a part of the cost of such improvement or to retire

indebtedness issued in anticipation of such aid, shall likewise be

deposited in a reserve fund for the purpose of retiring either such

obligations or, as an additional alternative, other obligations of at

least equal weighted average life. The entire proceeds of the sale or

such state or federal aid received, as the case may be, shall be

deposited to the credit of such fund, provided however, that if the

aggregate amount thereof shall exceed the principal of such indebtedness

due or to become due, or if, when all such outstanding obligations have

been retired, any moneys remain unexpended in the reserve fund, such

excess moneys may be used for any lawful municipal or district purpose,

as the case may be. The provisions of this section shall not apply in a

case where a provision of any other law requires that the proceeds of

the sale of a capital improvement shall be deposited in a reserve fund

established for the purpose of retiring outstanding obligations.

2-a. The provisions of this section shall apply to capital

improvements of town and county improvement districts. For the purpose

of implementing the provisions of this section in regard to such

districts, the term "governing board" shall mean the governing board of

the town or county, as the case may be, in which such district is

located, and the term "chief fiscal officer" shall mean the chief fiscal

officer of such town or county.

3. Appropriations from such fund shall be made only for the payment or

payments of all or part of the said outstanding indebtedness. However,

any balance remaining in said fund upon the payment of all outstanding

principal and interest may be expended for any lawful purpose of the

municipal corporation, fire district or school district.

4. The chief fiscal officer shall keep a separate account for each of

such funds established. Such account shall show:

a. The date of creation of the fund and the amount credited thereto.

b. The interest earned by such fund.

c. The capital gains or losses resulting from the sale of investments

of the fund.

d. The interest or capital gains which have accrued to the fund.

e. The amount and date of each withdrawal from the fund.

f. The assets of the fund, indicating the cash balance therein and a

schedule of the amounts invested. The chief fiscal officer at the

termination of each fiscal year shall render a detailed report of the

operation and condition of each of such funds to the governing board.

5. The members of the governing board are hereby declared trustees of

such funds and shall be subject to all the duties and responsibilities

imposed by law on trustees, and such duties and responsibilities may be

enforced by the municipal corporation, fire district or school district,

as the case may be, or by any board, commission, agency, office or

taxpayer thereof. An expenditure from such mandatory reserve fund may be

made only by appropriation pursuant to a resolution of the governing

board.

6. The moneys in each such fund shall be deposited and secured in the

manner provided by section ten of this article. The governing board or

the chief fiscal officer of such municipal corporation, fire district or

school district, if the governing board shall delegate such duty to him,

may invest the moneys in each such fund in the manner provided in

section eleven of this article. Any interest earned or capital gains

realized on the moneys so deposited or invested shall accrue to and

become a part of each such fund. The separate identity of each such fund

shall be maintained whether its assets consist of cash, investments, or

both.

7. The members of the governing board shall be guilty of a misdemeanor

if they:

a. Authorize a withdrawal from any such mandatory reserve fund for any

purpose other than as provided in this section.

b. Expend any money withdrawn from any such mandatory reserve fund for

a purpose other than as provided in this section.

Unemployment insurance payment reserve fund. 1. The governing

board of any municipal corporation, school district, board of

cooperative educational services, or fire district which has elected to

become liable for payments in lieu of contributions required of

employers liable for contributions under article eighteen of the labor

law may establish a reserve fund to be known as an unemployment

insurance payment reserve fund.

2. There may be paid into such fund (a) such amounts as may be

provided therefor by budgetary appropriations, (b) amounts from any

other fund authorized by this chapter by resolution subject to

permissive referendum, and (c) such other funds as may be legally

appropriated.

3. The moneys in such fund shall be deposited and secured in the

manner provided by section ten of this article. The governing board, or

the chief fiscal officer of such municipality, school district, board of

cooperative educational services, or fire district, if the governing

board shall delegate such duty to him, may invest the moneys in such

fund in the manner provided by section eleven of this article. Any

interest earned or capital gain realized on the money so deposited or

invested shall accrue to and become part of such fund. The separate

identity of such fund shall be maintained whether its assets consist of

cash or investments or both.

4. An expenditure shall be made from such fund only as required by law

to pay into the unemployment insurance fund an amount equivalent to the

amount of benefits paid to claimants and charged to the account of such

municipal corporation, school district, board of cooperative educational

services, or fire district in accordance with the provisions of

paragraph (e) of subdivision one of section five hundred eighty-one of

the labor law.

5. If at the end of any fiscal year the moneys in such fund shall

exceed the amounts required to be paid pursuant to subdivision four of

this section plus any additional amount required to pay all pending

claims, the governing board of the municipal corporation, school

district, board of cooperative educational services or fire district

may, within sixty days of the close of such fiscal year, elect to: (a)

transfer said excess, or any part thereof, to any fund authorized by

this article or section thirty-six hundred fifty-one of the education

law; and/or (b) apply said excess, or any part thereof to the budget

appropriation of the next succeeding fiscal year.

6. If the municipal corporation, school district, board of cooperative

educational services, or fire district shall, after the establishment of

such fund, terminate its election to become liable for payments in lieu

of contributions, the moneys remaining in such fund may be transferred

to any other fund authorized by this chapter or section thirty-six

hundred fifty-one of the education law, only to the extent that the

moneys in such fund shall exceed in amount the sum sufficient to pay all

pending claims.

Insurance reserve fund. 1. a. "Municipal corporation," as used

in this section, shall mean a municipal corporation, as defined in

section two of this chapter, school district, except a school district

in a city with a population of one hundred twenty-five thousand or more,

board of cooperative educational services, fire district, a district

corporation and a special improvement district governed by a separate

board of commissioners.

b. "Judgments", "actions" and "claims", as used in this section, shall

mean those judgments, actions and claims against the municipal

corporation that arise out of those kinds of risks for which

expenditures may be made pursuant to subdivision two of this section.

2. (a) The governing board of any municipal corporation may establish

a reserve fund to be known as the insurance reserve fund. Upon the

creation of the fund, the municipality may make expenditures from the

fund for any loss, claim, action or judgment for which the municipal

corporation is authorized or required to purchase or maintain insurance,

except those kinds of risks for which insurance is authorized pursuant

to paragraph one, two, three, fifteen, sixteen, seventeen, eighteen,

twenty-two or twenty-three of subsection (a) of section one thousand one

hundred thirteen of the insurance law, or for payments in lieu of

contributions under article eighteen of the labor law; provided however,

that no municipality shall make an expenditure from such fund for any

loss, claim, action or judgment for which the municipal corporation has

established a reserve fund under any other provision of law; provided,

further that the Scarsdale union free school district, the Mamaroneck

union free school district, the Minisink Valley central school district,

the Vernon Verona Sherrill central school district, the Ithaca city

school district, the Kenmore-Town of Tonawanda union free school

district, the Bedford central school district, the Grand Island central

school district, the Tonawanda city school district, the enlarged city

school district of Middletown, the Frontier central school district, the

Owego Apalachin central school district, the Maine-Endwell central

school district, the Binghamton city school district, the Candor central

school district, the Cleveland Hill union free school district, the

Depew union free school district, the Iroquois central school district,

the Liverpool central school district, the Auburn enlarged city school

district, the Carmel central school district, the Clarence central

school district, the Fulton city school district, and the Canastota

central school district may establish insurance reserve funds in

compliance with this section and article seventy-four of the education

law and such school districts may make expenditures in compliance with

this section and article seventy-four of the education law from such

reserve fund for any loss, claim, action or judgment for which the

school districts are authorized or required to purchase or maintain

insurance for the kinds of risks for which insurance is authorized

pursuant to paragraph three of subsection (a) of section one thousand

one hundred thirteen of the insurance law.

(b) Notwithstanding any other provision of law to the contrary, where

a municipal corporation has previously established a reserve fund under

another provision of law for a type of risk for which expenditures may

be made under paragraph (a) of this subdivision, the municipal

corporation may, by resolution, discontinue such other reserve fund and

transfer any unexpended balance to the reserve fund established under

this section; provided, however, that to the extent such unexpended

balance is subject to any liabilities incurred or accrued against the

other reserve fund, any unexpended balances so transferred shall only be

used for such incurred or accrued liabilities including expenses in

connection therewith. Prior to the discontinuance of the other reserve

fund, the fiscal and legal officers of the municipal corporation shall

certify to the governing board thereof the amount that may be necessary

to satisfy all liabilities incurred or accrued against it.

3. There may be paid into such fund:

a. Such amounts as may be provided by budgetary appropriations;

b. Amounts from any other fund authorized by this chapter by

resolution subject to permissive referendum; and

c. Such other funds as may be legally appropriated.

4. The amount paid into such fund during any fiscal year shall not

exceed the greater of thirty-three thousand dollars or five per centum

of the total budget for such fiscal year.

5. The moneys in such fund shall be deposited and secured in the

manner provided by section ten of this article. The governing board, or

the chief fiscal officer of such municipal corporation, if the governing

board shall delegate such duty to him, may invest the moneys in such

fund in the manner provided by section eleven of this article. Any

interest earned or capital gain realized on the money so deposited or

invested shall accrue to and become part of such fund.

6. The chief fiscal officer shall account for this fund separate and

apart from all other funds of the municipal corporation. Such accounting

shall show: the source, date and amount of each sum paid into the fund;

the interest earned by such fund; capital gains or losses resulting from

the sale of investments of this fund; the order, purpose thereof, date

and amount of each payment from this fund; the assets of the fund,

indicating cash balance and a schedule of investments. The chief fiscal

officer, within sixty days of the end of each fiscal year, shall furnish

a detailed report of the operation and condition of this fund to the

governing board. The chief fiscal officer shall also keep a separate

account for each kind of risk funded pursuant to subdivision two of this

section.

7. Notwithstanding any provision of law to the contrary, municipal

corporations shall not have the power to enter into agreements, among

themselves or one for the other, to pool their reserve fund established

pursuant to subdivision two of this section for the payment of

judgments, actions and claims.

8. Any action or claim shall be compromised or settled by the

governing board, officer or employee of the municipal corporation

authorized to settle or compromise actions or claims on behalf of the

municipal corporation.

9. An expenditure may be made from this fund for the payment of all or

part of the cost, including interest, of:

a. Judgments;

b. Actions that have been compromised or settled and that have been

approved by the court in which the action or proceeding is pending;

c. Claims that have been settled or compromised and that have been

approved by a justice of the supreme court of the judicial district in

which the municipal corporation is located;

d. The uninsured portion of any loss to property owned by the

municipal corporation if such loss arises out of a kind of risk

described in subdivision two of this section.

e. Expert or professional services rendered in connection with the

investigation, adjustment or settlement of claims, actions or judgments.

10. The order of the court or the justice approving such settlement or

compromise may be granted upon motion of the body, officer or employee

of the municipal corporation authorized to do so, supported by an

affidavit setting forth the cause of action or claim against the

municipal corporation and also such other information which, in its or

his opinion, will enable the court or justice to arrive at a

determination that such compromise or settlement is just, reasonable and

to the interest of the municipal corporation. Such body, officer or

employee may also present the affidavit of other persons in support of

such motion. The court or the justice, in order to arrive at such a

determination, may require such body, officer or employee to present

additional information by a supplementary affidavit or affidavits or may

require other persons to present additional information by their

affidavits.

11. Notwithstanding subdivisions eight and nine of this section or any

other provision of law to the contrary, the governing body of any

municipal corporation may, without judicial approval, compromise or

settle any action or claim and make an expenditure from this fund where

the amount of such settlement or compromise does not exceed twenty-five

thousand dollars.

12. The members of the governing board shall be guilty of a

misdemeanor if they:

a. Authorize a withdrawal from this fund for any purpose except as

provided in this section; or

b. Expend any money withdrawn from this fund for a purpose other than

as provided in this section.

13. If, after the establishment of such fund, the municipality

determines that such fund is no longer needed, the moneys remaining in

such fund may be transferred to any other reserve fund of the municipal

corporation authorized by this chapter that is comprised of moneys which

were raised on the same tax base as the moneys in the reserve fund

established under this section or section thirty-six hundred fifty-one

of the education law, only to the extent that the moneys in this fund

shall exceed the sum sufficient to pay all liabilities incurred or

accrued against it. Prior to the discontinuance of such fund, the fiscal

and legal officers of such municipal corporation shall certify to the

governing board thereof the amount that may be necessary to retain in

such fund to satisfy all liabilities incurred or accrued against it and

such sum shall be retained in the fund for payment of such amounts or

until later certified that such funds are no longer needed.

Solid waste management facility reserve funds. The governing

body of a municipality may establish a fund, to be known as a solid

waste management facility reserve fund of such municipality. There shall

be deposited in such reserve fund such amounts as such governing body

shall from time to time deem appropriate, which may include, but need

not be limited to, such percentage of fees received by such municipality

from the operation of municipally owned or operated solid waste

management facilities as defined in title seven of article twenty-seven

of the environmental conservation law, as deemed appropriate by such

municipality. Moneys in the solid waste management facility reserve fund

shall be deposited and secured in the manner provided by section ten of

this article and shall be appropriated only for the purpose of paying

amounts due for the design, construction and operation, of solid waste

management facilities owned or operated by such municipality, and for

closure, or post-closure care, including operation and maintenance

expenses of solid waste management facilities owned or operated by or on

behalf of such municipality. The management of a solid waste management

facility reserve fund established pursuant to this section and shall be

subject to the provisions of subdivision seven, eight and ten of section

six-h of this article and the investment of moneys therein shall be

subject to the provisions of section eleven of this article. The

governing board of a municipality may authorize the transfer of funds

from the solid waste management facility reserve fund to the credit of

another capital reserve fund if the unexpended balance remaining in the

fund established for a specific capital improvement has been completed,

after deducting from such balance a sum sufficient to satisfy all

outstanding claims arising from the construction, reconstruction or

acquisition of such capital improvement. For the purposes of this

section the term "municipality" shall mean a municipal corporation, as

defined in section two of this chapter or any designated agency thereof,

or a solid waste management district, public authority or public benefit

corporation having power to construct, operate and maintain a solid

waste management facility.

Employee benefit accrued liability reserve fund. 1. The

following terms when used or referred to in this section, shall have the

following meaning:

(a) "Municipal corporation" shall mean a municipal corporation, as

defined in section two of this chapter, school district, except a school

district in a city with a population of one hundred twenty-five thousand

or more, board of cooperative educational services, fire district, a

district corporation and a special improvement district governed by a

separate board of commissioners.

(b) "Employee benefits" shall mean the cash payment of the monetary

value of accrued and accumulated but unused and unpaid sick leave,

personal leave, holiday leave, vacation time, time allowances granted in

lieu of overtime compensation and any other forms of payment for accrued

but unliquidated time earned by municipal employees and payable to

municipal employees upon termination of service, whether by retirement

or otherwise, as authorized by ordinance, local law, or collective

bargaining agreement or section six of the civil service law for which

expenditures may be made pursuant to subdivision two of this section.

2. (a) The governing board of any municipal corporation may establish

a reserve fund to be known as the employee benefit accrued liability

reserve fund. Upon the creation of the fund, the municipality may make

expenditures from the fund for any accrued employee benefit payment due

an employee of the municipal corporation upon termination of the

employee's service, provided however, that no municipality shall make an

expenditure from such fund for any employee benefit for which the

municipal corporation has established a reserve fund under any other

provision of law.

(b) Notwithstanding any other provision of law to the contrary, where

a municipal corporation has previously established a reserve fund for a

type of accrued employee benefits for which expenditures may be made

under paragraph (a) of this subdivision, the municipal corporation may,

by resolution, discontinue such other reserve fund and transfer any

unexpended balance to the reserve fund established under this section;

provided, however, that to the extent such unexpended balance is subject

to any liabilities incurred or accrued against the other reserve fund,

any unexpended balances so transferred shall only be used for such

incurred or accrued liabilities including expenses in connection

therewith. Prior to the discontinuance of the other reserve fund, the

fiscal and legal officers of the municipal corporation shall certify to

the governing board thereof the amount that may be necessary to satisfy

all liabilities incurred or accrued against it.

3. There may be paid into such fund:

(a) such amounts as may be provided by budgetary appropriations;

(b) amounts from any other fund authorized by this chapter by

resolution subject to permissive referendum; and

(c) such other funds as may be legally appropriated.

4. The moneys in such fund shall be deposited and secured in the

manner provided by section ten of this article. The governing board, or

the chief fiscal officer of such municipal corporation, if the governing

board shall delegate such duty to him, may invest the moneys in such

fund in the manner provided by section eleven of this article. Any

interest earned or capital gain realized on the money so deposited or

invested shall accrue to and become part of such fund.

5. The chief fiscal officer shall account for this fund separate and

apart from all other funds of the municipal corporation. Such accounting

shall show: the source, date and amount of each sum paid into the fund;

the interest earned by such fund; capital gains or losses resulting from

the sale of investments of this fund; the order, purpose thereof, date

and amount of each payment from this fund; the assets of the fund,

indicating cash balance and a schedule of investments. The chief fiscal

officer, within sixty days of the end of each fiscal year, shall furnish

a detailed report of the operation and condition of this fund to the

governing board. The chief fiscal officer shall also keep a separate

account for each kind of employee benefit funded pursuant to subdivision

two of this section.

6. Any action or claim for accrued employee benefits shall be

compromised or settled by the governing board, officer or employee of

the municipal corporation authorized to settle or compromise actions or

claims on behalf of the municipal corporation.

7. An expenditure may be made from this fund for the payment of all or

part of the cost, including interest, of:

(a) the cash payment of the monetary value of accumulated or accrued

and unused sick leave, holiday leave, vacation leave, time allowance

granted in lieu of overtime compensation and other forms of payment for

accrued leave time and benefits due to a municipal employee upon

termination of municipal employment and separation from service as

required by ordinance, local law, collective bargaining agreement or

section six of the civil service law.

(b) the reasonable costs of the administration of the reserve fund.

(c) expert or professional services rendered in connection with the

investigation, adjustment or settlement of claims, actions or judgments

relating to claims for accrued employee benefits as defined in this

section.

8. No member of the governing board shall:

(a) authorize a withdrawal from this fund for any purpose except as

provided in this section; or

(b) expend any money withdrawn from this fund for a purpose other than

as provided in this section.

Any member of the governing board who violates the provision of this

subdivision shall be guilty of a misdemeanor.

9. If, after the establishment of such fund, the municipality

determines that such fund is no longer needed, the moneys remaining in

such fund may be transferred to any other reserve fund of the municipal

corporation authorized by this chapter that is comprised of moneys which

were raised on the same tax base as the moneys in the reserve fund

established under this section or section thirty-six hundred fifty-one

of the education law, only to the extent that the moneys in this fund

shall exceed the sum sufficient to pay all liabilities incurred or

accrued against it. Prior to the discontinuance of such fund, the fiscal

and legal officers of such municipal corporation shall certify to the

governing board thereof the amount that may be necessary to retain in

such fund to satisfy all liabilities incurred or accrued against it and

such sum shall be retained in the fund for payment of such amounts or

until later certified that such funds are no longer needed.

10. Notwithstanding any provision of law to the contrary, the

governing board of a school district may, during the two thousand

fifteen--two thousand sixteen school year, authorize a withdrawal from

this fund in an amount not to exceed the lesser of: (a) the dollar value

of excess funding in the fund as determined by the comptroller pursuant

to section thirty-three of this chapter or (b) the amount of the school

district's remaining gap elimination adjustment as calculated by the

commissioner of education pursuant to subdivision seventeen of section

thirty-six hundred two of the education law. Funds withdrawn pursuant to

this subdivision may only be used for the purpose of maintaining

educational programming during the two thousand fifteen--two thousand

sixteen school year which otherwise would have been reduced as a result

of such gap elimination adjustment. Governing boards which make such a

withdrawal shall submit, in a form prescribed by the commissioner of

education, relevant information about the withdrawal, which shall

include but not be limited to, the amount of such withdrawal, the date

of withdrawal, and the use of such withdrawn funds.

11. Notwithstanding any other provision of law to the contrary, a

board of cooperative educational services that has been determined upon

state audit or in its annual independent audit to have accumulated an

excess in such fund over the sum sufficient to pay all liabilities

incurred or accrued against it shall withdraw the amount of such excess

as of the date of withdrawal and shall distribute such amount to all

school districts that paid to such board of cooperative educational

services moneys that were deposited to such fund in the same proportion

as the total payments from such school district into such fund bears to

the total payments from all school districts into such fund, or, at the

request of the school district, may use such amount to offset the

administrative and capital expenses payable by the school district in

the current school year, and any such amount attributable to an approved

cost of service computed pursuant to subdivision five of section

nineteen hundred fifty of the education law shall not be included in the

approved cost of services computed pursuant to subdivision five of

section nineteen hundred fifty of the education law. Such withdrawal

shall be made within thirty days after the audit becomes final or within

thirty days after this subdivision takes effect, whichever is later.

Intermunicipal agreement for a joint capital reserve fund in

the county of Tompkins. 1. As used in this section:

a. "Capital improvement" shall have the same meaning as such term is

defined in section six-c of this article.

b. "Commission" shall mean the Southern Cayuga Lake intermunicipal

water commission, as established by an intermunicipal agreement among

the member municipalities, pursuant to section one hundred nineteen-o of

this chapter, for the purposes of constructing and operating a water

filtration plant, storage facilities and transmission facilities in the

county of Tompkins, among other purposes.

c. "Equipment" shall have the same meaning as such term is defined in

section six-c of this article.

d. "Member municipalities" shall mean the villages of Cayuga Heights

and Lansing, the towns of Dryden, Ithaca and Lansing, and any other

village or town electing to enter into the intermunicipal agreement

establishing the Southern Cayuga Lake intermunicipal water commission.

2. Notwithstanding any other provision of law to the contrary, the

member municipalities may, by intermunicipal agreement, establish a

joint capital reserve fund, for the Southern Cayuga Lake intermunicipal

water district, to provide for the financing of all or part of the cost

of:

a. the construction, reconstruction or acquisition of a specific

capital improvement or the acquisition of a specific item or specific

items of equipment;

b. the construction, reconstruction or acquisition of a type of

capital improvement or the acquisition of a type of equipment; or

c. a combination of specific and types of capital improvements and

equipment.

3. Any agreement establishing such capital reserve fund shall be

approved by all of the member municipalities.

4. The member municipalities shall determine by agreement:

a. the maximum amount to be deposited in such capital reserve fund;

b. the manner in which such capital reserve fund shall be funded which

may include contributions from each member municipality or retention and

dedication to such fund of surplus revenues generated by the operation

of the jointly owned water, storage and transmission facilities; and

c. the manner in which, and the capital improvements and/or equipment

for which the provisions of the local finance law, the moneys in such

capital reserve fund may be expended.

5. Any funds deposited in such capital reserve fund shall be properly

deposited in a separate fund or funds in depositories and properly

secured in accordance with the provisions of the local finance law

governing the deposits and investments of municipal funds. If the

agreement establishing such fund so authorizes, the funds deposited may

be held in one or more separate accounts in the name of the commission

provided that the person or persons authorized to withdraw funds are

chief fiscal officers of one or more of the member municipalities and

are fully bonded. Otherwise such funds shall be held in a separate

account jointly in the name of all member municipalities or, if the

member municipalities agree, in the name of one of the member

municipalities for the benefit of all of the member municipalities.

6. Except as otherwise expressly provided in this section, the

deposit, investment, accrual of interest, expenditure, maintenance of

records and other matters relating to the capital reserve shall be

governed by the provisions of section six-c of this article.

Retirement contribution reserve funds 1. As used in this

section:

a. "Municipal corporation" means a municipal corporation as defined in

section two of this chapter, school district (except a school district

in a city with a population of one hundred twenty-five thousand or

more), board of cooperative educational services, fire district,

district corporation, police district, and special improvement district

governed by a separate board of commissioners.

b. "Participating employer" means: (i) a participating employer as

defined in subdivision twenty of section two of the retirement and

social security law or in subdivision twenty of section three hundred

two of such law; or (ii) a participating employer as defined in

subdivision three of section five hundred one of the education law.

c. "Retirement contribution" shall mean all or any portion of the

amount payable by a municipal corporation to: (i) either the New York

state and local employees' retirement system or the New York state and

local police and fire retirement system pursuant to section seventeen or

three hundred seventeen of the retirement and social security law; or

(ii) the New York state teachers' retirement system pursuant to section

five hundred twenty-one of the education law.

2. The governing board of any municipal corporation which is also a

participating employer by resolution may establish a retirement

contribution reserve fund for the purpose of (a) financing retirement

contributions, and/or (b) in the case of a municipal corporation which

is a participating employer as defined in subdivision three of section

five hundred one of the education law, financing appropriations

authorized by law in order to offset all or a portion of the amount

deducted from the moneys apportioned to the municipal corporation from

the state for the support of common schools pursuant to section five

hundred twenty-one of the education law.

2-a. With respect to a municipal corporation which is a participating

employer as defined in subdivision three of section five hundred one of

the education law, which elects to utilize a retirement contribution

reserve fund (a) to finance retirement contributions to the New York

state teachers' retirement system pursuant to section five hundred

twenty-one of the education law and/or (b) to offset all or a portion of

the amount deducted from the moneys apportioned to the municipal

corporation from the state for the support of common schools pursuant to

section five hundred twenty-one of the education law, such municipal

corporation shall establish a sub-fund within the retirement

contribution reserve fund, which shall be separately administered

consistent with the provisions of this section. Such municipal

corporation may pay into such sub-fund during any particular fiscal year

an amount not to exceed two per centum of the total compensation or

salaries of all teachers in the employ of said municipal corporation who

are members of the New York state teachers' retirement system paid

during the immediately preceding fiscal year. The balance of such

sub-fund may not exceed ten per centum of the total compensation or

salaries of all teachers in the employ of the municipal corporation who

are members of the New York state teachers' retirement system paid

during the immediately preceding fiscal year. For the purposes of this

subdivision, the term "teacher" shall have the same meaning as such term

is defined under subdivision four of section five hundred one of the

education law.

3. There may be paid into a retirement contribution reserve fund:

a. such amounts as may be provided therefor by budgetary appropriation

or raised by tax therefor;

b. such revenues as are not required by law to be paid into any other

fund or account;

c. such other funds as may be legally appropriated; and

d. notwithstanding any law to the contrary, such amounts as may be

transferred from a reserve fund established pursuant to section six-c,

six-d, six-e, six-f or six-g of this article comprised of moneys raised

from the same tax base as the moneys in the retirement contribution

reserve fund, or a reserve fund established pursuant to section

thirty-six hundred fifty-one of the education law, provided, that any

such transfer shall only be made by resolution of the governing board of

such municipal corporation adopted after a public hearing held on at

least fifteen days prior published notice in the official newspaper of

the municipal corporation or, if the municipal corporation does not have

an official newspaper, in at least one newspaper having general

circulation in the municipal corporation.

4. The moneys in a retirement contribution reserve fund shall be

deposited and secured in the manner provided by section ten of this

article. The governing board of such municipal corporation, or the chief

fiscal officer thereof if the governing board shall delegate such duty

to him or her, may invest the moneys in such fund in the manner provided

by section eleven of this article. Any interest earned or capital gain

realized on the money so deposited or invested shall accrue to and

become part of such fund.

5. The governing board of such municipal corporation by resolution may

authorize expenditures from a retirement contribution reserve fund.

Except as otherwise provided by law, moneys in a retirement contribution

reserve fund may only be expended (a) to finance retirement

contributions, and/or (b) in the case of a municipal corporation which

is a participating employer, as defined in subdivision three of section

five hundred one of the education law, for appropriations authorized by

law in order to offset all or a portion of the amount deducted from the

moneys apportioned to the participating employer from the state for the

support of common schools pursuant to section five hundred twenty-one of

the education law. With respect to a municipal corporation which is a

participating employer as defined in subdivision three of section five

hundred one of the education law, expenditures from the retirement

contribution reserve fund to finance retirement contributions to the New

York State teachers' retirement system pursuant to section five hundred

twenty-one of the education law and/or to offset all or a portion of the

amount deducted from the moneys apportioned to the municipal corporation

from the state for the support of common schools pursuant to section

five hundred twenty-one of the education law may only be made from the

sub-fund established pursuant to subdivision two-a of this section.

6. The governing board of such municipal corporation by resolution may

authorize the transfer of a portion of the moneys in a retirement

contribution reserve fund to a reserve fund of the municipal corporation

established pursuant to section six-c, six-d, six-e, six-f or six-g of

this article comprised of moneys raised from the same tax base as the

moneys in the retirement contribution reserve fund, or a reserve fund

established pursuant to section thirty-six hundred fifty-one of the

education law, provided, that any such transfer shall only be made by

resolution of the governing board of such municipal corporation adopted

after a public hearing held on at least fifteen days prior published

notice in the official newspaper of the municipal corporation or, if the

municipal corporation does not have an official newspaper, in at least

one newspaper having general circulation in the municipal corporation.

7. The chief fiscal officer of such municipal corporation shall

account for a retirement contribution reserve fund separate and apart

from all other funds of the municipal corporation. Such accounting shall

show: the source, date and amount of each sum paid into the fund; the

interest earned by such fund; capital gains or losses resulting from the

sale of investments of this fund; the order, purpose thereof, date and

amount of each payment from this fund; the assets of the fund,

indicating cash balance and a schedule of investments. The chief fiscal

officer, within sixty days of the end of each fiscal year, shall furnish

a detailed report of the operation and condition of this fund to the

governing board.

8. The members of the governing board of such municipal corporation

are hereby declared trustees of a retirement contribution reserve fund

and shall be subject to all the duties and responsibilities imposed by

law on trustees, and such duties and responsibilities may be enforced by

the municipal corporation, as the case may be, or by any board,

commission, agency, officer or taxpayer thereof.

9. No member of the governing board of such municipal corporation

shall:

(a) authorize a withdrawal from a retirement contribution reserve fund

for any purpose except as provided in this section; or

(b) expend any money withdrawn from such fund for a purpose other than

as provided in this section.

Any member of the governing board who violates the provisions of this

subdivision shall be guilty of a misdemeanor.

10. The governing board of such municipal corporation by resolution

may determine that a retirement contribution reserve fund is no longer

needed and terminate the fund. Such resolution shall transfer any moneys

remaining in such fund to one or more reserve funds of the municipal

corporation established pursuant to section six-c, six-d, six-e, six-f

or six-g of this article comprised of moneys raised from the same tax

base as the moneys in the retirement contribution reserve fund, or one

or more reserve funds established pursuant to section thirty-six hundred

fifty-one of the education law.

11. The governing board of a municipal corporation which is a

participating employer as defined in subdivision three of section five

hundred one of the education law by resolution may (a) authorize the

transfer of all or a portion of the monies in the separately

administered sub-fund as established under subdivision two-a of this

section to the retirement contribution reserve fund, and/or (b)

authorize the transfer of all or a portion of the monies in the

retirement contribution reserve fund to the separately administered

sub-fund as provided in subdivision two-a of this section, subject to

the limits on annual payments into the sub-fund and the balance of the

sub-fund specified by subdivision two-a of this section.

Community preservation funds. 1. As used in this section, the

following words and terms shall have the following meanings:

(a) "Community preservation" shall mean and include any of the

purposes outlined in subdivision four of this section.

(b) "Board" means the advisory board required pursuant to subdivision

five of this section.

(c) "Fund" means the community preservation fund created pursuant to

subdivision two of this section.

(d) "Designated community" means any town or city within the Hudson

Valley counties of Putnam, Ulster, or Westchester.

(e) "Tax" means the real estate transfer tax payable on a real

property conveyance pursuant to section fifteen hundred sixty-one of the

tax law, but shall have a different meaning if the context clearly

indicates such as the real estate transfer tax imposed pursuant to

article thirty-one of the tax law.

2. The governing body of any designated community is authorized to

establish by local law a community preservation fund pursuant to the

provisions of this section. Deposits into the fund may include revenues

of the local government from whatever source and shall include, at a

minimum, all revenues from a tax imposed upon the transfer of real

property interests in such designated community pursuant to article

thirty-three-B of the tax law. The fund shall also be authorized to

accept gifts of any such interests in land or of funds. Interest accrued

by monies deposited into the fund shall be credited to the fund. In no

event shall monies deposited in the fund be transferred to any other

account. Nothing contained in this section shall be construed to prevent

the financing in whole or in part, pursuant to the local finance law, of

any acquisition authorized pursuant to this section. Monies from the

fund may be utilized to repay any indebtedness or obligations incurred

pursuant to the local finance law consistent with effectuating the

purposes of this section.

3. The purposes of the fund shall be exclusively, (a) to implement a

plan for the preservation of community character as required by this

section, (b) to acquire interests or rights in real property for the

preservation of community character within the designated community

including villages therein in accordance with such plan and in

cooperation with willing sellers, (c) to establish a bank pursuant to a

transfer of development rights program consistent with section two

hundred sixty-one-a of the town law and section twenty-f of the general

city law, (d) to provide a management and stewardship program for such

interests and rights consistent with subdivision nine of this section

and in accordance with such plan designed to preserve community

character; provided that not more than ten percent of the fund shall be

utilized for such management and stewardship program, and (e) to make

payments to school, fire, fire protection and ambulance districts in

connection with lands within the designated community that are owned by

the state or any municipal corporation. Such payments may only be made

to districts where more than twenty-five percent of the assessed value

of such district is wholly exempt from real property taxation pursuant

to the real property tax law because it is owned by the state or a

municipal corporation. Not more than ten percent of the fund may be used

for such purpose in any calendar year. Such payments from the fund shall

not exceed the actual tax liability that would have been due if such

lands of the state or of a municipal corporation had been subject to

real property taxation. Where more than one district is eligible for

such a payment under this paragraph, and such payment is less than the

actual tax liability that would have been due if such lands of the state

or a municipal corporation had been subject to real property taxation,

the designated community shall apportion such annual payment on the

basis of the total tax levied by each district within the designated

community for the year such payment is made. Such payment made by the

designated community shall be used solely to reduce the property tax

liability of the remaining taxpayers of the district within such

designated community. If the implementation of the community

preservation project plan, adopted by a governing body, as provided in

subdivision six of this section, has been completed, and funds are no

longer needed for the purposes outlined in this subdivision, then any

remaining monies in the fund shall be applied to reduce any bonded

indebtedness or obligations incurred to effectuate the purposes of this

section.

4. Preservation of community character shall involve one or more of

the following: (a) establishment of parks, nature preserves, or

recreation areas; (b) preservation of open space; (c) preservation of

lands of exceptional scenic value; (d) preservation of fresh and

saltwater marshes or other wetlands; (e) preservation of aquifer

recharge areas; (f) preservation of undeveloped beachlands or shoreline;

(g) establishment of wildlife refuges for the purpose of maintaining

native animal species diversity, including the protection of habitat

essential to the recovery of rare, threatened or endangered species; (h)

preservation of unique or threatened ecological areas; (i) preservation

of rivers and river areas in a natural, free-flowing condition; (j)

preservation of forested land; (k) preservation of public access to

lands for public use including stream rights and waterways; (l)

preservation of historic places and properties listed on the New York

state register of historic places and/or protected under a municipal

historic preservation ordinance or law; (m) undertaking any of the

paragraphs of this subdivision in furtherance of the establishment of a

greenbelt; and (n) preservation of land which is predominantly viable

agricultural land, as defined in subdivision seven of section three

hundred one of the agriculture and markets law, or unique and

irreplaceable agricultural land, as defined in subdivision six of

section three hundred one of the agriculture and markets law.

5. The governing body of any designated community which has

established a community preservation fund shall create an advisory board

to review and make recommendations on proposed acquisitions of interests

in real property using monies from the fund. Such board shall consist of

five or seven legal residents of the municipality who shall serve

without compensation. No member of the local legislative body shall

serve on the board. A majority of the members of the board shall have

demonstrated experience with conservation or land preservation

activities. The municipal legislative body shall make a reasonable

effort to appoint at least one active farmer to the board. In any county

that has a county agricultural and farmland protection board established

pursuant to section three hundred two of the agriculture and markets

law, the municipal legislative body shall make a reasonable effort to

appoint at least one member of the county agricultural and farmland

protection board to the advisory board. The terms of members of the

board first appointed shall be so fixed that the term of one member

shall expire at the end of the municipal official year in which such

members were initially appointed. The terms of the remaining members

first appointed shall be so fixed that the term shall expire at the end

of each official year thereafter. At the expiration of the term of each

member first appointed, his or her successor shall be appointed for a

term which shall be equal in years to the number of members of the

advisory board. The board shall act in an advisory capacity to the

governing body.

6. The governing body of any designated community which has

established a community preservation fund shall, by local law, adopt a

community preservation project plan. This plan shall list every project

which the designated community plans to undertake pursuant to the

community preservation fund. It shall include every parcel which is

necessary to be acquired in the designated community in order to protect

community character. Such plan shall provide for a detailed evaluation

of all available land use alternatives to protect community character,

including but not limited to: (a) fee simple acquisition, (b) zoning

regulations, including density reductions, cluster development, and site

plan and design requirements, (c) transfer of development rights, (d)

the purchase of development rights, and (e) scenic and conservation

easements. Such evaluation shall be as specific as practicable as to

each parcel selected for inclusion in the plan. The plan shall establish

the priorities for preservation. Funds from the community preservation

fund may only be expended for projects which have been included in said

plan. Such plan shall be updated not less than once every five years. A

copy of the plan shall be filed with the commissioner of environmental

conservation, the commissioner of agriculture and markets and the

commissioner of the office of parks, recreation and historic

preservation. Such plan shall be completed at least sixty days before

the submission of the mandatory referendum required by section fifteen

hundred sixty-one of the tax law and shall be made available for public

review at the designated community clerk's office, at any public

libraries within the designated community, and where practical posted on

the municipality's website.

7. The governing body of any designated community which has

established a community preservation fund pursuant to this section shall

study and consider establishing a transfer of development rights program

to protect community character as provided for by section two hundred

sixty-one-a of the town law. All provisions of such section two hundred

sixty-one-a shall be complied with. If at any time during the life of

the community preservation fund a transfer of development rights program

is established, the designated community may utilize monies from the

community preservation fund in order to create and fund a central bank

of the transfer of development rights program. If at any time during the

life of the community preservation fund, a transfer of development

rights program is repealed by the designated community, all monies from

the central bank shall be returned to the community preservation fund.

8. No interests or rights in real property shall be acquired pursuant

to this section until a public hearing is held as required by section

two hundred forty-seven of this chapter; provided, however, that nothing

in this section shall prevent the governing body from entering into a

conditional purchase agreement before a public hearing is held. Any

resolution of a governing body approving an acquisition of interests or

rights in real property pursuant to this section, shall find that

acquisition was the best alternative for the protection of community

character of all the reasonable alternatives available to the designated

community.

9. Rights or interests acquired pursuant to this section shall be

administered and managed in a manner which (a) allows public use and

enjoyment in a manner compatible with the natural, scenic, historic and

open space character of such lands; (b) preserves the native biological

diversity of such lands; (c) with regard to open spaces, limits

improvements to enhancing access for passive use of such lands such as

nature trails, boardwalks, bicycle paths, hiking trails, snowshoe

trails, cross country ski trails, and peripheral parking areas provided

that such improvements do not degrade the ecological value of the land

or threaten essential wildlife habitat; and (d) preserves cultural

property consistent with accepted standards for historic preservation.

In furthering the purposes of this section, the designated community may

enter into agreements with corporations organized under the

not-for-profit corporation law and engage in land trust activities to

manage lands including less than fee interests acquired pursuant to the

provisions of this section, provided that any such agreement shall

contain a provision that such corporation shall keep the lands

accessible to the public unless such corporation shall demonstrate to

the satisfaction of the designated community that public accessibility

would be detrimental to the lands or any natural resources associated

therewith.

10. Rights or interests in real property acquired with monies from

such fund shall not be sold, leased, exchanged, donated, or otherwise

disposed of or used for other than the purposes permitted by this

section without the express authority of an act of the legislature,

which shall provide for the substitution of other lands of equal

environmental value and fair market value and reasonably equivalent

usefulness and location to those to be discontinued, sold or disposed

of, and such other requirements as shall be approved by the state

legislature. Any conservation easements created under title three of

article forty-nine of the environmental conservation law, which are

acquired with monies from such fund, may only be modified or

extinguished as provided by section 49-0307 of the environmental

conservation law. Nothing in this section shall preclude a designated

community, by local law, from establishing additional restrictions to

the alienation of lands acquired pursuant to this section. This

subdivision shall not apply to the sale of development rights by a

designated community acquired pursuant to this section, where such sale

is made by a development rights bank created by a designated community,

pursuant to a transfer of development rights program established by a

designated community pursuant to section two hundred sixty-one-a of the

town law, provided, however (a) that the lands from which said

development rights were acquired shall remain preserved in perpetuity by

a permanent conservation easement or other instrument that similarly

preserves the community character referenced in subdivision four of this

section, and (b) the proceeds from such sale shall be deposited in the

community preservation fund. Notwithstanding any other provision of this

subdivision, there shall be no right to public use and enjoyment of land

used in conjunction with a farm operation as defined by subdivision

eleven of section three hundred one of the agriculture and markets law.

In furthering the purposes of this section, the municipality may enter

into agreements with corporations organized under the not-for-profit

corporation law that engage in land trust activities to manage lands

including less than fee interests acquired pursuant to the provisions of

this section, provided that any such agreement shall contain a provision

that such corporation shall keep and manage the lands consistent with

this section.

Charitable gifts reserve fund. 1. The governing board of any

county or New York city may establish a reserve fund to be known as a

charitable gifts reserve fund.

2. Such fund may receive unrestricted charitable monetary

contributions and the moneys in such fund shall be deposited and secured

in the manner provided by section ten of this article. The governing

board, or the chief fiscal officer of such county, or New York city, if

the governing board shall delegate such duty to him or her, may invest

the moneys in such fund in the manner provided by section eleven of this

article. Any interest earned or capital gain realized on the money so

deposited or invested shall accrue to and become part of such fund. The

separate identity of such fund shall be maintained whether its assets

consist of cash or investments or both.

3. At the end of the fiscal year, the governing board of the county or

New York city, within sixty days of the close of the fiscal year, shall

transfer the funds to the general fund or other fund of the municipal

corporation, so that the funds may be used for charitable purposes.

4. The governing board shall establish a procedure for contributions

to the charitable gifts reserve fund, which shall include the provision

of a written acknowledgment of the gift to the contributor.

Charitable gifts reserve fund. 1. The governing board of any

city with a population less than one million, town or village may

establish a reserve fund to be known as a charitable gifts reserve fund.

2. Such fund may receive unrestricted charitable monetary

contributions and the moneys in such fund shall be deposited and secured

in the manner provided by section ten of this article. The governing

board, or the chief fiscal officer of such town, village or city, if the

governing board shall delegate such duty to him or her, may invest the

moneys in such fund in the manner provided by section eleven of this

article. Any interest earned or capital gain realized on the money so

deposited or invested shall accrue to and become part of such fund. The

separate identity of such fund shall be maintained whether its assets

consist of cash or investments or both.

3. At the end of the fiscal year, the governing board of the town,

village or city, within sixty days of the close of the fiscal year, may

transfer the funds to the general fund or other fund of the municipal

corporation, so that the funds may be used for charitable purposes.

4. The governing board shall establish a procedure for contributions

to the charitable gifts reserve fund, which shall include the provision

of a written acknowledgment of the gift to the contributor.

Asset forfeiture escrow fund. 1. As used in this section:

a. The term "governing board", insofar as it is used in reference to a

village, shall mean the board of trustees thereof; insofar as it is used

in reference to a town, shall mean the town board thereof; insofar as it

is used in reference to a county, shall mean the board of supervisors or

the county legislature thereof, as applicable; insofar as it is used in

reference to a city, shall mean the "legislative body" thereof, as that

term is defined in subdivision seven of section two of the municipal

home rule law.

b. The term "chief fiscal officer" shall mean:

(i) In the case of counties operating under (1) an alternative form of

county government or charter enacted as a state statute or adopted under

the alternative county government law or by local law, the official

designated in such statute, consolidated law or local law as the chief

fiscal officer, or, if no such designation is made therein, the official

possessing powers and duties similar to those of a county treasurer

under the county law as shall be designated by local law.

(2) In the case of counties not operating under an alternative form of

county government or charter enacted as a state statute or adopted under

the alternative county government law or by local law, the treasurer,

except that, in the case of counties having a comptroller, it shall mean

the comptroller.

(ii) In the case of cities, the comptroller; if a city does not have a

comptroller, the treasurer; if a city has neither a comptroller nor a

treasurer, such official possessing powers and duties similar to those

of a city treasurer as the finance board shall, by resolution,

designate. A certified copy of such designation shall be filed with the

state comptroller and shall be a public record.

(iii) In the case of towns, the town supervisor; if a town has more

than one supervisor, the presiding supervisor.

(iv) In the case of villages, the village treasurer.

c. The term "claiming authority" shall mean the district attorney

having jurisdiction over the offense or the attorney general for purpose

of those crimes for which the attorney general has criminal jurisdiction

in a case where the underlying criminal charge has been, is being or

could have been brought by the attorney general, or the appropriate

corporation counsel or county attorney, where such corporation counsel

or county attorney may act as a claiming authority only with the consent

of the district attorney or the attorney general, as appropriate.

d. The term "claiming agent" shall mean and shall include all persons

described in subdivision thirty-four of section 1.20 of the criminal

procedure law, and sheriffs, undersheriffs and deputy sheriffs of

counties within the city of New York.

2. The governing board shall authorize the establishment of an asset

forfeiture escrow fund for any claiming agent or claiming authority as

is deemed necessary for the monies and proceeds of sale of property

realized as a consequence of any forfeiture. The separate identity of

such fund shall be maintained.

3. There shall be paid into the asset forfeiture escrow fund all

proceeds realized as a consequence of any forfeiture action. Such funds

shall include, but are not limited to, all funds and any property (real,

personal, tangible and/or intangible) that are forfeited pursuant to

agreement or otherwise prior to, in lieu of or after the lodging of

criminal charges, pre-indictment, post-indictment, or after conviction

by plea or trial. Such funds shall also include funds that are forfeited

in compromise of charges that are never brought.

4. The monies and proceeds in the asset forfeiture escrow fund shall

be deposited and secured in the manner provided by section ten of this

article. All monies and proceeds so deposited in such fund shall be kept

in a separate bank account. The chief fiscal officer may invest the

moneys in such fund in the manner provided in section eleven of this

article. Any interest earned or capital gains realized on the moneys so

deposited or invested shall accrue to and become part of such fund. The

separate identity of such fund shall be maintained, whether its assets

consist of cash, investments, or both.

5. Every claim for the payment of money from the asset forfeiture

escrow fund shall specify the purpose of the requested payment and must

be accompanied by a written certification that the expenditure is in

compliance with all applicable laws. Payments from such fund shall be

made by the chief fiscal officer subject to the required certification

and the determination of fund sufficiency.

6. The chief fiscal officer, at the termination of each fiscal year,

shall render a detailed report of the operation and condition of the

asset forfeiture escrow fund to the governing board and the state

comptroller. Such report shall be subject to examination and audit. The

chief fiscal officer may account for such fund separate and apart from

all other funds of the village, town, county, and city.

Payment of municipal bonds. Where the bonds of a municipal

corporation have been lawfully issued, and the payment of the principal

or interest thereof shall not have been otherwise paid or provided for,

the same shall be a charge upon such corporation, and shall be levied

and assessed, collected and paid the same as other debts and charges.

When for any reason any portion of the principal or interest due upon

such bonds shall not have been paid, the same shall be assessed, levied

and collected at the first assessment and collection of taxes by such

corporation after such omission.

Application of revenues of a public improvement or part thereof,

or service. For the purpose of determining the amount of taxes which may

be raised on real estate pursuant to section ten of article eight of the

constitution the revenues received in each fiscal year by any county,

city or village from that portion of a public improvement or part

thereof, or service, owned or rendered by such municipal corporation for

which bonds or capital notes are issued after January first, nineteen

hundred fifty, shall be applied first to the payment of all costs of

operation, maintenance and repairs thereof incurred during such fiscal

year, and then to the payment of the amounts required in such fiscal

year to pay the interest on and the amortization of, or payment of, such

indebtedness contracted for such public improvement or part thereof, or

service, or such revenues may be deposited in a special fund to be used

solely for such payments. The provisions of this section shall not

prohibit the use of excess revenues for any lawful county, city or

village purpose. The provisions of this section shall not apply to a

public improvement or part thereof constructed to provide for the supply

of water or to a joint sewage or drainage project described in section

15.00 of the local finance law.

Use of tax moneys raised outside constitutional tax limit. 1.

Whenever any county, city (other than the city of New York), village, or

school district which is coterminous with, or partly within, or wholly

within, a city having less than one hundred twenty-five thousand

inhabitants according to the latest federal census, shall make a direct

budgetary appropriation for any fiscal year for

a. The payment in such year or in any future fiscal year or years of

all or any part of the cost of an object or purpose for which bonds may

be issued, or

b. The payment of the interest on and principal of indebtedness, and

the taxes required for such appropriation are excluded from the tax

limitation prescribed by section ten of article eight of the state

constitution, the amount so appropriated shall be used only for the

object or purpose for which such appropriation was made, except as

otherwise provided in subdivision two of this section.

2. Whenever the total amount of any such appropriation is not used for

the object or purpose for which made, any unexpended balance therein may

be used, in the manner provided and when authorized by law, for any of

the following objects or purposes or a combination thereof:

a. An appropriation for an object or purpose for which bonds may be

issued;

b. An appropriation to a reserve fund established pursuant to law for

the financing of all or part of the cost of an object or purpose for

which bonds may be issued; or

c. An appropriation for the payment of the interest on and principal

of indebtedness, other than indebtedness evidenced by bonds and notes

described in paragraphs A and D of section five of article eight of the

state constitution, or renewals thereof.

Inter-fund advances. 1. Definitions. As used in this section,

the following terms shall have the following meanings:

(a) "Fund" shall mean a group of accounts set aside for the purpose of

accounting for moneys or other resources of a municipal corporation in

accordance with the uniform system of accounts prescribed by the state

comptroller pursuant to section thirty-six of this chapter and shall

include funds established for special improvement districts and other

funds containing moneys which, if raised by taxes, special ad valorem

levies or special assessments, would be raised by taxes, special ad

valorem levies or special assessments levied on property in less than

the entire area of the municipal corporation.

(b) "Moneys" shall mean moneys of the municipal corporation raised or

received from any source which are held in the custody of the chief

fiscal officer of the municipal corporation and are not immediately

required for the purpose for which they were raised or received, except

proceeds from the sale of obligations or other moneys which, by law, may

be used only for stated purposes.

(c) "Chief fiscal officer" shall mean chief fiscal officer as defined

in paragraph five of section 2.00 of the local finance law.

2. A municipal corporation may temporarily advance moneys held in any

fund to any other fund of the municipal corporation. Any such temporary

advance shall be authorized in the same manner as prescribed by general,

special or local law for making budgetary transfers between

appropriations. Suitable records shall be kept of each temporary

advance.

3. Moneys temporarily advanced pursuant to this section shall be

repaid to the fund from which they were advanced as soon as available

but in no event later than the close of the fiscal year in which the

advance was made. If moneys from a fund which, if raised by taxes,

special ad valorem levies or special assessments, would be raised from

taxes, ad valorem levies or special assessments on a different base of

properties than those for which taxes, ad valorem levies or special

assessments would be raised for the fund to which the advance is made,

the repayment shall include an amount reasonably estimated to be the

additional amount that would have been earned on the investment of

moneys in the fund making the advance had the advance not been made.

Deposits of public money; security. 1. For purposes of this

section:

a. "Local government" shall mean any municipal corporation, school

district, board of cooperative educational services, district

corporation, special improvement district governed by a separate board

of commissioners, industrial development agency or authority or a public

library.

b. "Public funds" shall mean funds of a local government.

c. "Public deposits" shall mean deposits of public funds in a bank or

trust company which are available for all uses generally permitted by

the bank or trust company to the depositing local government for

actually and finally collected funds under the bank's or trust company's

account agreement or policies.

d. "Bank" shall mean a bank as defined by the banking law or a

national banking association located and authorized to do business in

New York.

e. "Trust company" shall mean a trust company as defined by the

banking law and located and authorized to do business in New York.

f. "Eligible securities" shall mean any of the following:

(i) Obligations issued by the United States of America, an agency

thereof or a United States government sponsored corporation or

obligations fully insured or guaranteed as to the payment of principal

and interest by the United States of America, an agency thereof or a

United States government sponsored corporation.

(ii) Obligations issued or fully guaranteed by the International Bank

for Reconstruction and Development, the Inter-American Development Bank,

the Asian Development Bank, and the African Development Bank.

(iii) Obligations partially insured or guaranteed by any agency of the

United States of America, at a proportion of the market value of the

obligation that represents the amount of the insurance or guaranty.

(iv) Obligations issued or fully insured or guaranteed by this state,

obligations issued by a municipal corporation, school district or

district corporation of this state or obligations of any public benefit

corporation which under a specific state statute may be accepted as

security for deposit of public moneys.

(v) Obligations issued by states (other than this state) of the United

States rated in one of the three highest rating categories by at least

one nationally recognized statistical rating organization.

(vi) Obligations of Puerto Rico rated in one of the three highest

rating categories by at least one nationally recognized statistical

rating organization.

(vii) Obligations of counties, cities and other governmental entities

of another state having the power to levy taxes that are backed by the

full faith and credit of such governmental entity and rated in one of

the three highest rating categories by at least one nationally

recognized statistical rating organization.

(viii) Obligations of domestic corporations rated in one of the four

highest rating categories by at least one nationally recognized

statistical rating organization.

(ix) Any mortgage related securities, as defined in the Securities

Exchange Act of 1934, as amended, which may be purchased by banks under

the limitations established by federal bank regulatory agencies.

(x) Commercial paper and bankers' acceptances issued by a bank (other

than the bank with which the money is being deposited or invested) rated

in the highest short-term category by at least one nationally recognized

statistical rating organization and having maturities of not longer than

sixty days from the date they are pledged.

(xi) Zero-coupon obligations of the United States government marketed

as "Treasury STRIPS".

g. "Eligible surety bond" shall mean a bond executed by an insurance

company authorized to do business in this state, the claims-paying

ability of which is rated in the highest rating category by at least two

nationally recognized statistical rating organizations.

h. "Eligible letter of credit" shall mean an irrevocable letter of

credit issued in favor of the local government for a term not to exceed

ninety days by a bank (other than the bank with which the money is being

deposited or invested) whose commercial paper and other unsecured

short-term debt obligations (or, in the case of a bank which is the

principal subsidiary of a holding company, whose holding company's

commercial paper and other unsecured short-term debt obligations) are

rated in one of the three highest rating categories (based on the credit

of such bank or holding company) by at least one nationally recognized

statistical rating organization or by a bank (other than the bank with

which the money is being deposited or invested) that is incompliance

with applicable federal minimum risk-based capital requirements.

2. a. (i) The governing board of every local government shall

designate one or more banks or trust companies for the deposit of public

funds, the disposition of which is not otherwise provided for by law,

received by the chief fiscal officer or any other officer authorized by

law to make deposits. Such designation shall be by resolution of the

governing board or, in the case of a city, such other body as may be

authorized or required by law to designate depositaries. Such resolution

shall specify the maximum amount which may be kept on deposit at any

time in each such bank or trust company. Such designations and amounts

may be changed at any time by further resolution.

(ii) The governing board of a local government that has designated one

or more banks or trust companies for the deposit of public funds

pursuant to subparagraph (i) of this paragraph may, in its discretion,

authorize the designated bank or trust company to arrange for the

redeposit of the local government's funds in one or more banking

institutions, as defined in section nine-r of the banking law, for the

account of the local government, through a deposit placement program

that meets all of the following conditions:

(A) On or after the date that the local government's funds are

received, the designated bank or trust company (I) arranges for the

redeposit of such funds into deposit accounts in one or more banking

institutions and (II) serves as custodian for the local government with

respect to the funds redeposited into such accounts.

(B) Local government funds deposited in a designated bank or trust

company in accordance with this subparagraph and held in the designated

bank or trust company in excess of the amount insured by the federal

deposit insurance corporation pending redeposit of the funds pursuant to

this subparagraph shall be secured in accordance with subdivision three

of this section.

(C) The full amount of local government funds redeposited by the

designated bank or trust company into deposit accounts in banking

institutions pursuant to this subparagraph (plus accrued interest, if

any) shall be insured by the federal deposit insurance corporation.

(D) At the same time that the money of the local government is

redeposited pursuant to this subparagraph, the selected depository

receives an amount of deposits from customers of other financial

institutions pursuant to the deposit placement program that are at least

equal to the amount of the local government's funds redeposited by the

designated bank or trust company.

b. Except as otherwise provided by law, all deposits shall be made to

the credit of the local government. The deposit of public funds pursuant

to this subdivision shall release the officer making the deposit and his

or her surety from any liability for loss of such public funds by reason

of the default or insolvency of any such bank or trust company.

c. The governing board of a local government, in which a banking

development district has been designated by the superintendent of

financial services pursuant to section ninety-six-d of the banking law,

may designate a bank, trust company or national bank located in such

district for the deposit of public funds, the disposition of which is

not otherwise provided for by law, received by the chief fiscal officer

or other officer authorized by law to make such deposits. Such

designation shall be by resolution of the governing board or, in the

case of a city, such other body as may be authorized or required by law

to designate depositories. Such resolution shall specify the maximum

amount which may be kept on deposit at any time with such bank, trust

company or national bank located in such district. Subject to an

agreement between such governing board and such banking institution,

public funds deposited in such banking institution may earn a fixed

interest rate which is at or below such banking institution's posted two

year certificate of deposit rate. In those instances where there is such

an agreement, its terms and conditions shall also be specified in the

resolution. Any such designation, amount, or agreement provisions may be

changed at any time by further resolution.

3. All public deposits in excess of the amount insured under the

provisions of the Federal Deposit Insurance Act as now or hereafter

amended shall be secured in accordance with this subdivision:

a. The officers making a deposit may accept a pledge of eligible

securities having in the aggregate a market value at least equal to the

aggregate amount of public deposits from such officers, or a pledge of a

pro rata portion of a pool of eligible securities having in the

aggregate a market value at least equal to the aggregate amount of

public deposits from all such officers within the state at such bank or

trust company, together with a security agreement from the bank or trust

company. The security agreement and custodial agreement referred to

below may be the same agreement including when the bank or trust company

holding the public deposits holds the collateral for the public body.

The security agreement shall provide that such eligible securities or

pro rata portion of a pool of eligible securities are being pledged by

the bank or trust company as security for the public deposits, together

with agreed upon interest, if any, and any costs or expenses arising out

of the collection of such deposit upon a default. It shall also provide

for the conditions under which the securities or pro rata portion of a

pool of eligible securities held may be sold, presented for payment,

substituted or released and the events of default which will enable the

local government to exercise its rights against the pledged securities.

Such agreement shall include all provisions deemed necessary and

sufficient to secure in a satisfactory manner the local government's

interest in the collateral. The custodial agreement shall provide that

the pledged securities or pro rata portion of a pool of eligible

securities will be held by the custodial bank or trust company as agent

of, and custodian for, the local government, and will be kept separate

and apart from the general assets of the custodial bank or trust company

and it shall also provide for the manner in which the custodial bank or

trust company shall confirm the receipt, substitution or release of the

collateral. Such agreement shall provide for the frequency of

revaluation of collateral by the custodial bank or trust company and the

substitution of collateral when a change in the rating of a security

causes ineligibility pursuant to paragraph f of subdivision one of this

section. Such agreement shall include all provisions deemed necessary

and sufficient to secure in a satisfactory manner the local government's

interest in the collateral. Such agreement may also contain such other

provisions as the governing board may deem necessary.

b. Whenever eligible securities delivered to a custodial bank or trust

company pursuant to this paragraph are transferred by entries on the

books of a federal reserve bank or other book-entry system operated by a

federally regulated entity without physical delivery of the evidence of

such obligations, the records of the custodial bank or trust company

shall show, at all times, the interest of the local government in such

securities or pro rata portion of a pool of eligible securities as set

forth in the security agreement.

c. (i) In lieu of or in addition to the deposit of eligible

securities, the officers making a deposit may accept an eligible surety

bond payable to such local government as security for the payment of one

hundred percent, or an eligible letter of credit payable to such local

government as security for the payment of one hundred forty percent, of

the aggregate amount of public deposits from such officers and the

agreed upon interest, if any. The terms and conditions of any eligible

surety bond shall be approved by the governing board.

(ii) In lieu of or in addition to the deposit of eligible securities,

the officers making a deposit may, in the case of an irrevocable letter

of credit issued in favor of the local government by a federal home loan

bank whose commercial paper and other unsecured short-term debt

obligations are rated in the highest rating category by at least one

nationally recognized statistical rating organization, accept such

letter of credit payable to such local government as security for the

payment of one hundred percent of the aggregate amount of public

deposits from such officers and the agreed upon interest, if any.

d. For purposes of determining the market value of securities as

required by this subdivision:

(i) The eligible securities described in subparagraphs (viii), (x) and

(xi) of paragraph f of subdivision one of this section shall be valued

at eighty percent of their market value.

(ii) The eligible securities described in subparagraph (ix) of

paragraph f of subdivision one of this section shall be valued at

seventy percent of their market value.

(iii) Of the eligible securities described in subparagraphs (v), (vi)

and (vii) of paragraph f of subdivision one of this section, those

securities rated in the highest category shall be valued at one hundred

percent of their market value; those securities rated in the second

highest rating category shall be valued at ninety percent of their

market value; and those securities rated in the third highest rating

category shall be valued at eighty percent of their market value. When

two nationally recognized statistical rating organizations rate a

security in two different categories, the security shall be considered

to be rated in the higher of the two categories.

4. (a) Notwithstanding any other provision of law to the contrary, the

chief fiscal officer, or other officer authorized by law to make

deposits, may, subject to the approval of the governing body of a local

government, by resolution, enter into a contract with a courier service

for the purpose of causing the deposit of public funds with a bank or

trust company as provided in this section.

(b) The entrusting of public funds for deposit pursuant to paragraph

(a) of this subdivision shall release the officer entrusting the public

funds to the courier service and his or her surety from any liability

for loss of such public funds by the courier service in the process of

delivering such public funds to the designated bank or trust company.

(c) The local government authorizing the deposit of public funds by a

courier service pursuant to paragraph (a) of this subdivision shall

require the courier service to obtain a surety bond for the full amount

entrusted to the courier, payable to the local government and executed

by an insurance company authorized to do business in this state, the

claims paying ability of which is rated in the highest rating category

by at least two nationally recognized statistical rating organizations,

to insure against any loss of public funds entrusted to the courier

service for deposit or failure to deposit the full amount entrusted to

the courier.

(d) A deposit made by a courier on behalf of a local government shall

be deemed to be a deposit made by the chief fiscal officer or other

officer entrusting such funds for purposes of the requirements contained

in this section for securing public deposits.

(e) A bank or trust company may, from time to time and as agreed upon

with a local government, reimburse all or part of, but not more than,

the actual cost incurred by the local government in transporting cash,

negotiable instruments or other items for deposit through a courier

service. Any such reimbursement agreement shall apply only to a

specified deposit transaction, and may be subject to such terms,

conditions and limitations as the bank or trust company deems necessary

to ensure sound banking practices, including, but not limited to, any

terms, conditions or limitations that may be required by the department

of financial services or other federal or state authority.

Temporary investments. 1. For purposes of this section, the

terms "local government", "bank" and "trust company" shall have the same

meanings as in section ten of this article.

2. a. The governing board of any local government or, if the governing

board so delegates, the chief fiscal officer or other officer having

custody of the moneys may temporarily invest moneys not required for

immediate expenditure, except moneys the investment of which is

otherwise provided for by law, either: (1) in special time deposit

accounts in, or certificates of deposit issued by, a bank or trust

company located and authorized to do business in this state; or (2) in

accordance with all of the following conditions:

(i) the moneys are invested through a bank or trust company located

and authorized to do business in this state;

(ii) the bank or trust company arranges for the deposit of the moneys

in certificates of deposit in one or more banking institutions, as

defined in section nine-r of the banking law, for the account of the

local government;

(iii) the full amount of principal and accrued interest of each such

certificate of deposit must be insured by the federal deposit insurance

corporation;

(iv) the bank or trust company acts as custodian for the local

government with respect to such certificates of deposit issued for the

local government's account; and

(v) at the same time that the local government's moneys are deposited

and the certificates of deposit are issued for the account of the local

government, the bank or trust company receives an amount of deposits

from customers of other financial institutions equal to or greater than

the amount of the moneys invested by the local government through the

bank or trust company.

b. For any investment made pursuant to paragraph a of this

subdivision, such time deposit account or certificate of deposit shall

be payable within such time as the proceeds shall be needed to meet

expenditures for which such moneys were obtained and provided further

that such time deposit account or certificate of deposit be secured in

the same manner as is provided for securing deposits of public funds by

subdivision three of section ten of this article.

* 3. a. Investments pursuant to this section may also be made in the

following:

(1) obligations of the United States of America or in obligations

guaranteed by agencies of the United States of America where the payment

of principal and interest are guaranteed by the United States of America

or in obligations of the state of New York, or with the approval of the

state comptroller in obligations issued pursuant to section 24.00 or

25.00 of the local finance law by any municipality, school district or

district corporation other than the municipality, school district or

district corporation investing such moneys pursuant to this paragraph.

In addition, moneys in any reserve fund established pursuant to section

six-c, six-d, six-e, six-f, six-g, six-h, six-j, six-k, six-l, six-m or

six-n of this article may be invested in obligations of the

municipality, school district, fire district or district corporation

which has established the reserve fund, or in the case of a capital

reserve fund established for a town or county improvement district,

obligations of the town or county issued for the purposes of such

district.

(2) notwithstanding any other provision of general, special or local

law, any city having a population of one million or more and any county

may also make investments in the following:

(i) general obligation bonds and notes of any state other than this

state, provided that such bonds and notes receive the highest rating of

at least one independent rating agency designated by the state

comptroller;

(ii) obligations of any corporation organized under the laws of any

state in the United States maturing within two hundred seventy days,

provided that such obligations receive the highest rating of two

independent rating services designated by the state comptroller and that

the issuer of such obligations has maintained such ratings on similar

obligations during the preceding six months, provided, however, that the

issuer of such obligations need not have received such rating during the

prior six month period if such issuer has received the highest rating of

two independent rating services designated by the state comptroller and

is the successor or wholly owned subsidiary of an issuer that has

maintained such ratings on similar obligations during the preceding six

month period or if the issuer is the product of a merger of two or more

issuers, one of which has maintained such ratings on similar obligations

during the preceding six month period, provided, however, that no more

than two hundred fifty million dollars may be invested in such

obligations of any one corporation; or

(iii) bankers' acceptances maturing within two hundred seventy days

which are eligible for purchase in the open market by federal reserve

banks and which have been accepted by a bank or trust company which is

organized under the laws of the United States or of any state thereof

and which is a member of the federal reserve system and whose short-term

obligations meet the criteria outlined in clause (ii) of this

subparagraph. Provided, however, that no more than two hundred fifty

million dollars may be invested in such bankers' acceptances of any one

bank or trust company; or

(iv) obligations of, or instruments issued by or fully guaranteed as

to principal and interest by, any agency or instrumentality of the

United States acting pursuant to a grant of authority from the congress

of the United States, including but not limited to, any federal home

loan bank or banks, the Tennessee valley authority, the federal national

mortgage association, the federal home loan mortgage corporation and the

United States postal service, provided, however, that no more than two

hundred fifty million dollars may be invested in such obligations of any

one agency.

(v) no-load money market mutual funds registered under the Securities

Act of 1933, as amended, and operated in accordance with Rule 2a-7 of

the Investment Company Act of 1940, as amended, provided that such funds

are limited to investments in obligations issued or guaranteed by the

United States of America or in obligations of agencies or

instrumentalities of the United States of America where the payment of

principal and interest are guaranteed by the United States of America

(including contracts for the sale and repurchase of any such

obligations), and are rated in the highest rating category by at least

one nationally recognized statistical rating organization, provided,

however, that no more than two hundred fifty million dollars may be

invested in such funds.

b. All investments made pursuant to this subdivision shall be subject

to the following conditions:

(1) Such obligations shall be payable or redeemable at the option of

the owner within such times as the proceeds will be needed to meet

expenditures for purposes for which the moneys were provided and, in the

case of obligations purchased with the proceeds of bonds or notes, shall

be payable or redeemable in any event, at the option of the owner,

within two years of the date of purchase. Obligations that are purchased

pursuant to a repurchase agreement shall be deemed to be payable or

redeemable for purposes of this paragraph on the date on which the

purchased obligations are scheduled to be repurchased by the seller

thereof. Any obligation that provides for the adjustment of its interest

rate on set dates shall be deemed to be payable or redeemable for

purposes of this paragraph on the date on which the principal amount can

be recovered through demand by the holder thereof.

(2) Such obligations, unless registered or inscribed in the name of

the local government, shall be purchased through, delivered to and held

in the custody of a bank or trust company or, with respect to the city

of New York and counties, a reputable dealer in such obligations as

shall be designated by the state comptroller, in this state. Such

obligations shall be purchased, sold or presented for redemption or

payment by such bank or trust company or dealer in obligations only in

accordance with prior written authorization from the officer authorized

to make the investment. All such transactions shall be confirmed in

writing to the local government by the bank or trust company. All

obligations held in the custody of a bank or trust company pursuant to

this paragraph shall be held by such bank or trust company pursuant to a

written custodial agreement as set forth in paragraph a of subdivision

three of section ten of this article.

* NB Effective until July 1, 2029

* 3. Investments pursuant to this section may also be made in

obligations of the United States of America or in obligations guaranteed

by agencies of the United States of America where the payment of

principal and interest are guaranteed by the United States of America or

in obligations of the state of New York,. In addition, moneys in any

reserve fund established pursuant to section six-c, six-d, six-e, six-f,

six-g, six-h, six-j, six-k, six-l, six-m or six-n of this article may be

invested in obligations of the municipality, school district, fire

district or district corporation which has established the reserve fund,

or in the case of a capital reserve fund established for a town or

county improvement district, obligations of the town or county issued

for the purposes of such district.

All investments made pursuant to this subdivision shall be subject to

the following conditions:

a. Such obligations shall be payable or redeemable at the option of

the owner within such times as the proceeds will be needed to meet

expenditures for purposes for which the moneys were provided and, in the

case of obligations purchased with the proceeds of bonds or notes, shall

be payable or redeemable in any event, at the option of the owner,

within two years of the date of purchase. Obligations that are purchased

pursuant to a repurchase agreement shall be deemed to be payable or

redeemable for purposes of this paragraph on the date on which the

purchased obligations are scheduled to be repurchased by the seller

thereof. Any obligation that provides for the adjustment of its interest

rate on set dates shall be deemed to be payable or redeemable for

purposes of this paragraph on the date on which the principal amount can

be recovered through demand by the holder thereof.

b. Such obligations, unless registered or inscribed in the name of the

local government, shall be purchased through, delivered to and held in

the custody of a bank or trust company or, with respect to the city of

New York and counties, a reputable dealer in such obligations as shall

be designated by the state comptroller, in this state. Such obligations

shall be purchased, sold or presented for redemption or payment by such

bank or trust company or dealer in obligations only in accordance with

prior written authorization from the officer authorized to make the

investment. All such transactions shall be confirmed in writing to the

local government by the bank or trust company. All obligations held in

the custody of a bank or trust company pursuant to this paragraph shall

be held by such bank or trust company pursuant to a written custodial

agreement as set forth in paragraph a of subdivision three of section

ten of this article.

* NB Effective July 1, 2029

4. Notwithstanding any other provision of law, the governing board of

a local government may authorize the aforementioned officers to turn

over the physical custody and safekeeping of the evidences of the

investments made pursuant to this section to (a) any bank or trust

company incorporated in this state, or (b) any national bank located in

this state, or (c) any private banker duly authorized by the

superintendent of financial services of this state to engage in business

here. All such private bankers shall, as private bankers, maintain a

permanent capital of not less than one million dollars in this state.

The said officers may direct such bank, trust company or private banker

to register and hold any such evidences of investments in its custody,

in the name of its nominee. Such officers may deposit or authorize such

bank, trust company or private banker, to deposit, or arrange for the

deposit of any such evidences of investments with a federal reserve bank

or other book-entry transfer system operated by a federally regulated

entity to be credited to an account as to which the ownership of, and

other interests in, such evidences of investments may be transferred by

entries on the books of such federal reserve bank or other book-entry

transfer system operated by a federally regulated entity without

physical delivery of any such evidences of investments. The records of

any such bank, trust company or private banker shall show, at all times,

the ownership of such evidences of investments, and they shall, when

held in the possession of such bank, trust company or private banker be,

at all times, kept separate from the assets of such bank, trust company

or private banker. All evidences of investments delivered to a bank,

trust company, or private banker pursuant to this subdivision shall be

held by such bank, trust company or private banker pursuant to a written

custodial agreement as set forth in paragraph a of subdivision three of

section ten of this article. When any such evidences of investments are

so registered in the name of a nominee, such bank, trust company or

private banker shall be absolutely liable for any loss occasioned by the

acts of such nominee with respect to such evidences of investments.

5. A county clerk may invest any money collected on behalf of the

state until such time as the money is required to be remitted to the

state. The county clerk shall invest the state money only in those

investments authorized by this section and payable within such time as

the proceeds shall be required to be remitted to the state. Any interest

that accrues on moneys invested pursuant to this subdivision shall be

payable in equal shares to the state and to the county provided,

however, that any fees or service charges associated with the investment

shall be paid from such interest.

6. Except as may otherwise be provided in a contract with bond or note

holders, any moneys of a political subdivision authorized to be invested

pursuant to this section may be commingled for investment purposes;

provided, however, that any investment of commingled moneys shall be

payable or redeemable at the option of the owner within such time as the

proceeds shall be needed to meet expenditures for which such moneys were

obtained or as otherwise specifically provided in this section. The

separate identity of the sources of such funds shall at all times be

maintained and income received on moneys commingled for the purpose of

investment shall be credited on a pro rata basis to the fund or account

from which the moneys were invested.

7. The chief fiscal officer of each local government shall maintain or

cause to be maintained a proper record of all books, notes, securities

or other evidences of indebtedness held by or for such subdivision for

the purpose of investment. Such record shall at least identify the

security, the fund for which held, the place where kept and entries

shall be made therein showing date of sale or other disposition and the

amount realized therefrom.

Deposits of public authorities, public benefit corporations and

other corporations. In the event any public authority, public benefit

corporation or such other corporation to whose governing board the mayor

of the city of New York appoints one or more members shall require

security from a bank or trust company for deposit of moneys, then such

security may include obligations of the city of New York.

Special population census: population data. 1. Any county on

behalf of all cities, towns and villages therein or any county, city,

town, or village on its own behalf is hereby authorized and empowered to

contract with the United States bureau of the census to supervise a

special population census for purposes of computation of state

assistance payable pursuant to section fifty-four of the state finance

law in any year and the cost of such a census shall be an expense of the

county, city, town, or village respectively. Such county, city, town, or

village shall give written notice to the commissioner of taxation and

finance that such a contract has been entered into with the United

States bureau of the census within thirty days thereof.

2. A county, city, town, or village may request from the United States

bureau of the census and pay such bureau for the cost of special data

for possible use in apportioning its local legislative body.

Cancellation of unpaid checks or drafts.

Checks or drafts of any municipal corporation, district corporation or

school district which shall have been outstanding for more than one year

from the respective dates thereof, shall be cancelled and the amount

thereof returned to the fund which was originally charged. Prior to such

cancellation, the bank or banks on which such checks or drafts were

drawn shall be notified, by the fiscal officer or other officer having

responsibility for issuance of such checks, not to pay the same. A

complete and accurate record of all checks and drafts so cancelled shall

be maintained. The amount of any such check or draft shall be paid

without interest in the same manner as any other claim presented for

payment within six years from the original date of issuance, from any

moneys legally available, to the lawful holder thereof, or in the

absence of such check or draft, to the person or entity lawfully

entitled to payment upon submission of a voucher and a statement

accounting for such absence. For purposes of such payment, the governing

body of the municipal corporation, district corporation or school

district may establish an appropriation containing moneys sufficient to

pay the amounts of any outstanding checks or drafts which may be

presented.

Claims against fire insurance proceeds; procedure. 1. As used in

this section, any inconsistent provision of law notwithstanding, the

following terms shall have the following meanings:

(a) "Enforcing officer" means the elected or appointed officer of any

tax district charged by law with the duty to enforce the collection of

tax liens on real property.

(b) "Governing body" means the legislative body for the tax district.

(c) "Lien" means an unpaid tax, special ad valorem levy, special

assessment or other charge imposed upon real property by or on behalf of

a municipal corporation or special district which is an encumbrance on

real property, whether or not evidenced by a written instrument, and

provided that one such tax, levy, assessment or other charge has

remained undischarged for a period of one year or more.

(d) "Municipal corporation" means a county, city, town, village or

school district.

(e) "Real property" means property upon which there is erected any

residential, commercial or industrial building or structure except an

owner-occupied single family residential structure and owner-occupied

two family residential structures.

(f) "Tax district" means a county, city, town or village having the

power to enforce the collection of taxes, special ad valorem levies,

special assessments or other charges imposed upon real property by or on

behalf of a municipal corporation or special district.

2. Every tax district is hereby authorized and empowered to claim

against the proceeds of a policy of fire insurance insuring the interest

of an owner and issued on real property located therein to the extent of

any lien thereon which claim, when made and perfected in the manner

provided in this section, shall further constitute a lien against such

proceeds and which shall, as to such proceeds, be prior to all other

liens and claims except the claim of a mortgagee of record named in such

policy.

3. Upon the adoption of a resolution by the governing body providing

therefor, the enforcing officer of the tax district shall cause a notice

of intention to claim against proceeds to be served upon the state

superintendent of financial services for entry in the index of tax

districts maintained by him as provided in section three hundred

thirty-one of the insurance law. Thereafter the enforcing officer shall

render to any insurer the certificate required and in the manner

prescribed by such section and the amounts stated in such certificate

shall be a lien on the proceeds of the insurance policy until paid.

4. No resolution adopted as provided for in subdivision three hereof

shall be effective unless prior thereto the local legislative body for

the tax district shall have adopted a local law providing for the

release or return to the insured of any amounts to which it would

otherwise be entitled to claim provided that the insured agrees with the

tax district in writing to restore the affected premises to the same or

improved condition that it was in prior to the time that the lien of

such district against proceeds provided for in this section arose,

subject to such conditions as such resolution shall provide to guarantee

performance of such obligation including, but not limited to, an

agreement to deposit such proceeds in an escrow account or that the

insured shall obtain a performance bond.

5. The provisions of this section shall not be deemed or construed to

alter or impair the right of a tax district to acquire or enforce any

lien against real property but shall be in addition to any other power

provided by law to acquire or enforce such right.

Flexible benefits program. 1. For purposes of this section, the

following terms shall have the following meanings:

a. "Code" shall mean the United States internal revenue code of

nineteen hundred eighty-six, as amended, and regulations promulgated

thereunder.

b. "Commissioner of labor relations" shall mean the officer of a city

having a population of one million or more responsible for the

administration of health benefits on behalf of such city and any of the

entities set forth in subparagraph two of paragraph c of this

subdivision.

c. "Employer" shall mean (1) a city having a population of one million

or more, or (2) any one of the following entities: (i) the city

university of New York, (ii) the New York city health and hospitals

corporation, (iii) the New York city transit authority, (iv) the New

York city housing authority, (v) the New York city off-track betting

corporation, (vi) the New York city rehabilitation mortgage insurance

corporation, (vii) the New York city board of education, or (viii) the

New York city school construction authority.

d. "Employee" shall mean any officer or employee of a city having a

population of one million or more, or any officer or employee of any of

the entities set forth in subparagraph two of paragraph c of this

subdivision who are eligible to receive benefits from the New York city

employee benefits program.

For purposes of this section, an independent contractor shall not be

considered an employee.

e. "Flexible benefits program" shall mean the program established

pursuant to this section, qualifying as a cafeteria plan as defined in

section one hundred twenty-five of the code or any successor section

thereto providing similar benefits, and provided as a part of the

employee benefits program administered by the commissioner of labor

relations.

f. "Program administrator" shall mean that agent, as determined by the

commissioner of labor relations, responsible for the maintenance and

management of the flexible benefits program as authorized in subdivision

two of this section.

2. Any city having a population of one million or more, acting by the

commissioner of labor relations, subject to the approval of the director

of the budget of such city, is authorized to establish and implement a

flexible benefits program for its employees and the employees of any

employer as defined in subparagraph two of paragraph c of subdivision

one of this section, consistent with applicable provisions of the code.

The commissioner of labor relations is authorized to enter into

agreements with persons or entities, on behalf of such city or employer,

to act as program administrators of the flexible benefits program. The

commissioner of labor relations shall promulgate rules for the

appropriate administration of such flexible benefits program.

3. At the request of an employee, the chief fiscal officer of the

employer, or the officer responsible for the administration of such

employer's payroll, shall, by payroll deduction, adjust the payment of

the compensation of such employee as provided in a written statement by

the employee in connection with the establishment and maintenance of the

flexible benefits program as authorized by subdivision two of this

section, and shall transfer the amount so adjusted to the authorized

program administrator.

4. Moneys held for employees in any accounts established pursuant to

the flexible benefits program, as authorized in subdivision two of this

section, shall be held by the program administrator as agent for the

participating employee, shall be accounted for separately and shall

remain the property of the employer to the extent required by the code.

Notwithstanding any law to the contrary, moneys may be paid out of such

accounts without any appropriation by law. Any unexpended balances in

such accounts at the end of a plan year as that term is defined by the

United States internal revenue service shall be returned to the control

of the employer to the extent required by the code.

5. To the extent permitted by the code, any salary deduction or

deferral to an employee under the flexible benefits program established

pursuant to this section shall be considered part of such employee's

annual compensation for the purpose of computing pension contributions

and retirement benefits by any retirement system or plan to which the

employer contributes on behalf of said employee. However, this

subdivision shall in no way be construed to supersede the provisions of

sections four hundred thirty-one, five hundred twelve and six hundred

eight of the retirement and social security law or any other similar

provision of law which limits the salary base for computing retirement

benefits payable by a public retirement system.

Corporation for the benefit of the city of New York. 1.

Notwithstanding any provision of state or local law, the city of New

York is hereby authorized to provide for the creation of a single

not-for-profit corporation subject to section fourteen hundred eleven of

the not-for-profit corporation law, except to the extent that such

section is inconsistent with this section, which corporation shall have

the purpose, among others, of financing or refinancing costs arising

from or related to the closing of Freshkills landfill.

2. Such corporation shall have the authority to issue and sell one or

more series or classes of bonds, notes and other obligations from time

to time on behalf of the city of New York to finance or refinance costs

relating to the closure of the Freshkills Landfill. Such bonds, notes

and other obligations shall not constitute a debt or indebtedness of

such city and, together with the income therefrom, shall be exempt from

taxation, except for transfer and estate taxes.

3. The incorporation of TSASC, Inc. under section fourteen hundred

eleven of the not-for-profit corporation law, and the approval of

articles of incorporation and bylaws for such corporation, are hereby

ratified and shall be deemed to meet the requirements of this section,

notwithstanding that such requirements were enacted after such creation

and approval, and such corporation shall be treated for all purposes as

if it had been formed by and pursuant to the provisions of this section.

TSASC, Inc. shall be deemed to be the corporation formed pursuant to the

authorization provided in subdivision one of this section.

4. The provisions of this section shall not be deemed or construed to

alter or impair any other power of the city of New York to provide for

the creation of not-for-profit corporations pursuant to any other

applicable provision of law, but shall be in addition to any other such

power.

Treatment of capital costs and certain fund balances of the city

of New York; revenue stabilization fund of such city. Notwithstanding

the provisions of any general or special state law or local law to the

contrary, including but not limited to the New York city charter, the

following shall apply with respect to the budget and accounts of the

city of New York:

1. All costs that would be capital costs in accordance with generally

accepted accounting principles, but for the application of governmental

accounting standards board statement number forty-nine, shall be deemed

to be capital costs for purposes of this chapter and any other provision

of state or local law, including but not limited to the New York city

charter, relevant to the treatment of such costs;

2. The determination as to the existence of a deficit pursuant to the

New York state financial emergency act for the city of New York, while

such act remains in effect, and any other provision of state or local

law, including but not limited to the New York city charter, shall be

made without regard to changes in restricted fund balances, as defined

by the governmental accounting standards board, where restrictions in

relation to such fund balances are imposed by state or federal law or

regulation, or otherwise by private or governmental parties other than

the city of New York, and without regard to funds held in the health

stabilization fund, the school crossing guards health insurance fund,

any revenue stabilization fund established pursuant to section fifteen

hundred twenty-eight of the New York city charter and the management

benefits fund established by the city of New York. Deposits into any

such revenue stabilization fund shall be deemed to be expenses of such

city for all purposes in the fiscal year during which such deposits are

made, and withdrawals from such fund shall be deemed to be revenues of

such city for all purposes in the fiscal year during which such

withdrawals are made; provided however, that surpluses of such city,

whether accumulated from fiscal years ending prior to the effective date

of the chapter of the laws of two thousand twenty that amended this

subdivision or existing at the close of any fiscal year ending after

such effective date, shall be deposited into such revenue stabilization

fund as soon as practicable, and such deposits shall not be deemed

expenses of the city in the fiscal years during which such deposits are

made; and

3. The city of New York may establish and maintain a revenue

stabilization fund pursuant to section fifteen hundred twenty-eight of

the New York city charter. Except as required by subdivision two of this

section with respect to surpluses, deposits into and withdrawals from

such fund may be made by means of the procedures set forth in such

charter for adoption or modification of the expense budget of such city,

as applicable, provided that no more than fifty percent of the total

amount of such fund may be withdrawn in any fiscal year unless the mayor

has certified that there is a compelling fiscal need, which may be based

on circumstances including, but not be limited to, a national or

regional recession, a reduction in total revenues from the preceding

fiscal year as projected in the financial plan of the city of New York,

a natural or other disaster, or a declared state of emergency in the

city of New York or the state of New York. The authority to establish a

revenue stabilization fund set forth in this subdivision shall be in

addition to any other authorization set forth in this article or other

applicable law.

Reports. 1. Except as hereinafter provided, every municipal

corporation and school, fire, improvement and special district shall

annually make a report of its financial condition to the comptroller.

Such report shall be made by the chief fiscal officer of each municipal

corporation, by the chief fiscal officer of a municipal corporation

having a school district governed by article fifty-two of the education

law, for such school district, by the treasurer of each other school

district, except for a common school district not having a treasurer, by

the chairman of the school board or the sole trustee and by the

treasurer of each fire, improvement or special district, or in the case

of a consolidated health district, the president of the board of health.

Such reports shall include the financial transactions of joint services

defined by section one hundred nineteen-n of this chapter. If, pursuant

to any general or special law, there is a separate treasurer for any

municipal activity, the financial report of the activity shall be made

by such treasurer.

2. An annual financial report for each municipal urban renewal agency

shall be made by the treasurer of the agency.

3. An annual report of financial transactions shall be made by the

treasurer of each public library and library service system established

pursuant to section two hundred fifty-five of the education law, each

county vocational education board established pursuant to section eleven

hundred one of the education law and each board of cooperative

educational services established pursuant to section nineteen hundred

fifty-eight of the education law.

4. If for any reason, the comptroller shall deem it necessary that

additional information be furnished by any other officer, he may require

such additional information from such other officer in such form as he

may deem necessary to carry into effect the purposes of this article.

5. All reports shall be certified by the officer making the same.

Except as otherwise provided in this subdivision with respect to the

time for filing, all reports shall be filed with the comptroller within

sixty days after the close of the fiscal year of such municipal

corporation, district, agency or activity, provided, however, that upon

written request from the chief fiscal officer of a municipal

corporation, district, agency or activity, the comptroller may extend

such sixty day period for filing such report for an additional sixty

days. Reports may be filed by electronic transmission or in paper form.

The method of certifying a report filed in electronic form shall be

prescribed by the comptroller. It shall be the duty of the incumbent

officer at the time such reports are required to be filed with the

comptroller to file such report. The refusal or wilful neglect of such

officer to file a report as herein prescribed shall be a misdemeanor and

subject the financial officer so refusing or neglecting to a penalty of

five dollars per day for each day's delay beyond the sixty days to be

paid on demand of the comptroller. Notwithstanding any of the provisions

contained in this section:

(a) Each town or village having a population, as shown by the latest

preceding decennial federal census, between five thousand to nineteen

thousand nine hundred ninety-nine, shall file their respective reports

with the comptroller within ninety days after the close of the fiscal

year of such town or village. Upon written request from the chief fiscal

officer of such a town or village, the comptroller may extend such

ninety day period for an additional thirty days.

(b) Each town or village having a population, as shown by the latest

preceding decennial federal census, with twenty thousand or more, and

all cities and counties, irrespective of their populations, shall file

their respective reports with the comptroller within one hundred twenty

days after the close of the fiscal year of such county, city, town or

village.

6. Annually, each industrial development agency, the Troy industrial

development authority established pursuant to title eleven of article

eight of the public authorities law, and the Auburn industrial

development authority established pursuant to title fifteen of article

eight of the public authorities law, shall file a financial report

pursuant to section eight hundred fifty-nine of this chapter.

7. Each municipal corporation shall make accessible to the public on

its municipal website required under article thirteen-E of this chapter

documentation pertaining to its most recent annual financial reports,

current year budget, most recent independent audit report and most

recent fiscal performance plan or multiyear financial plan required

pursuant to paragraph g of subdivision ten of section fifty-four of the

state finance law, unless such information is covered by subdivision two

of section eighty-seven of the public officers law.

Reports from entities receiving foreign fire insurance premium

tax. Every entity receiving and disbursing foreign fire insurance

premium tax funds distributed pursuant to sections nine thousand one

hundred four and nine thousand one hundred five of the insurance law,

the administrative code of the city of New York and the charter of the

city of Buffalo shall make an annual verified report of the receipts,

expenditures and balances relating to the use and application of such

funds received and disbursed after January first, nineteen hundred

seventy-six to the state comptroller. Such report shall be made by the

treasurer, or if there be none, by the chief fiscal officer of such

entity, and shall be filed no later than the last day of February of

each year for the preceding calendar year.

Form of reports. The reports shall be in the form to be

prescribed by the comptroller and shall contain:

1. A statement of the receipts of such municipal corporation,

industrial development agency, district, agency or activity from all

sources and of all accounts or revenue which may be due and uncollected

at the close of the fiscal year.

2. A statement of the disbursements of such municipal corporation,

industrial development agency, district, agency or activity during the

fiscal year.

3. A detailed statement of the indebtedness of the municipal

corporation, industrial development agency, district, agency or activity

at the close of the fiscal year, the provisions made for the payment

thereof, together with the purposes for which it was incurred.

4. A detailed statement of installment purchase contracts entered into

by a municipal corporation, school district, district corporation or

board of cooperative educational services, the provisions made for the

payment thereof, the purposes for which such contract was entered into,

whether such contract was financed by the execution and delivery of

certificates of participation, and such other information as the

comptroller shall require.

5. A statement of the costs of ownership and operation and of the

income of each and every public service industry owned, maintained or

operated by any such municipal corporation, industrial development

agency, district, agency or activity.

6. Such further or more specific information in relation to the cost

of any branch of the service, or the cost of any improvement, of such

municipal corporation, industrial development agency, district, agency

or activity, as may be required by the comptroller.

Comptroller to furnish blank forms. The comptroller shall

annually furnish to the officers required to make reports by the

provisions of this article other than officers of a school district

subject to the jurisdiction of a district superintendent under the

provisions of article forty-five of the education law, and other than

officers filing the required reports by electronic or other paperless

method as authorized by section thirty of this article, upon request,

printed blanks and forms on which shall be indicated the information

required, together with suitable printed instructions for filling out

the same. In the case of school districts subject to the jurisdiction of

a district superintendent, such printed blanks, forms and printed

instructions shall be furnished to such district superintendent who

shall aid and assist the officers of such school district in making and

filing such report.

Accounts of officers to be examined. 1. Inspection and

examination of certain accounts. The comptroller shall cause the

accounts of all officers of each such municipal corporation, industrial

development agency, district, agency and activity to be inspected and

examined by one or more examiners of municipal affairs for such periods

as the comptroller shall deem necessary. On every such examination

inquiry shall be made as to the financial condition and resources of the

municipal corporation, industrial development agency, district, agency

or activity, and into the method and accuracy of its accounts.

2. Audits of school districts, boards of cooperative educational

services (BOCES) and charter schools. a. Notwithstanding any other

provisions of law to the contrary, the inspection and examination of

school districts, charter schools and boards of cooperative educational

services accounts shall be conducted pursuant to provisions of this

subdivision. Within such funds as are made available for such purpose,

the comptroller shall cause the accounts of every school district, BOCES

and charter school in the state to be examined pursuant to a plan

developed by the comptroller. Such audits shall be conducted in a manner

so as to provide, that every school district, BOCES and charter school

shall be audited at least once by March thirty-first, two thousand ten.

The priority and frequency of such audits, and any audits conducted

thereafter, shall be based upon a risk assessment process conducted by

the comptroller which may include investigations of alleged

improprieties, previous audit findings and recommendations, or other

financial performance indicators. The comptroller shall provide affected

school districts, BOCES and charter schools reasonable prior notice

before the commencement of any audit.

b. In undertaking such audits the comptroller's review shall include,

but not be limited to:

(1) examining, auditing and evaluating financial documents and records

of school districts, BOCES and charter schools,

(2) assessing the current financial practices of school districts,

BOCES and charter schools to ensure that they are consistent with

established standards, including whether any school district that uses a

risk-based or sampling methodology to determine which claims are to be

audited in lieu of auditing all claims has adopted a methodology that

provides reasonable assurance that all the claims represented in the

sample are proper charges against the school district; and

(3) determining that school districts, BOCES, and charter schools

provide for adequate protections against any fraud, theft, or

professional misconduct.

c. All audits shall include any appropriate findings and

recommendations of the auditors, regarding the fiscal practices that the

auditors believe to be in violation of, any state or federal law, rule

or regulation, or demonstrate negligence or incompetence.

d. The office of the state comptroller shall upon making a finding of

misconduct refer any findings of fraud, abuse or other conduct

constituting a crime that are uncovered during the course of an audit,

as appropriate, to the commissioner of education, the charter entity,

the attorney general, United States attorney or district attorney having

jurisdiction for appropriate action, together with any documents

supporting the auditors' findings.

e. The final audit report resulting from audits performed pursuant to

this section shall be made available to the public by school districts,

BOCES or charter schools upon request for a period of at least five

years. Furthermore, the school district, BOCES, or charter school shall

be required to post the final audit report on their internet website, if

available, or otherwise make available, for a period of five years.

f. Upon the request of the comptroller, any state agency, board of

cooperative educational services, school district or charter school,

shall cooperate with and make its staff, facilities, and resources

available to the comptroller for the purpose of assisting the

comptroller in carrying out all actions taken pursuant to this section,

and shall provide the comptroller upon request, with all data and

records in its possession that relate to audits undertaken pursuant to

this section.

g. The comptroller shall inform and advise the governor and the

legislature in December of each year regarding a review of all school

districts, BOCES, and charter schools audits conducted during the

preceding twelve months and any other pertinent information the

comptroller deems appropriate.

3. Examinations and report. In addition to the inspection and

examination of certain accounts pursuant to this section, the

comptroller by the end of the two thousand eleven--two thousand twelve

school year, shall also examine for the most recent school year as

practicable, the employee benefit accrued liability reserve funds of

school districts established pursuant to section six-p of this chapter.

Such examination shall be for the purpose of determining the amount of

funding in the reserve fund, the amount of liabilities against such fund

and if there exist funds in the reserve fund which are in excess of the

total liabilities of such fund. The comptroller shall notify the school

district if such excess funds exist and the dollar value of the excess

funding. The comptroller shall also prepare a report on the school

districts with excess funds in their employee benefit accrued liability

reserve fund and the amount of the excess funding for each district.

Such report shall be submitted by July first, two thousand twelve to the

director of the budget, the chair of the senate finance committee, the

chair of the assembly ways and means committee and the commissioner of

education.

Examination of distribution of foreign fire insurance premium

tax. The state comptroller may cause the records and accounts of any

entity receiving and disbursing foreign fire insurance premium tax funds

distributed pursuant to sections nine thousand one hundred four and nine

thousand one hundred five of the insurance law, the administrative code

of the city of New York and the charter of the city of Buffalo to be

inspected and examined respecting such funds received after January

first, nineteen hundred seventy-six for such periods as the comptroller

shall deem necessary. On every such examination inquiry shall be made as

to the method and accuracy of accounts.

Powers and duties of examiners. 1. The comptroller and each

examiner of municipal affairs shall have power to examine into the

financial affairs of every such municipal corporation, industrial

development agency, district, agency, activity, any fire company as

defined in section two hundred four-a of this chapter, and any other

organization, except a statewide association of local governments or

local government officials, that is controlled by one or more of any

such municipal corporations, industrial development agencies, districts

or agencies. An organization shall be deemed under the control of one or

more municipal corporations, industrial development agencies, districts

or agencies when one or more individuals who serve as officers or

employees of any such municipal corporation, industrial development

agency, district or agency: (a) select either a majority of the

organization's highest policy-making body or the organization's chief

executive officer; (b) constitute a majority of the voting strength that

selects either a majority of the organization's highest policy-making

body or the organization's chief executive officer; or (c) serve as: (i)

a majority of the organization's highest policy-making body; (ii) in his

or her official capacity, the organization's chief executive officer; or

(iii) in his or her official capacity, a partner in the organization. An

organization under the control of one or more municipal corporations,

industrial development agencies, districts or agencies shall also

include any other organization that is controlled by such organization.

2. In connection with any examination authorized by subdivision one of

this section, the comptroller and each examiner of municipal affairs

shall have power to administer an oath to any person whose testimony may

be required, and to compel the appearance and attendance of such person

for the purpose of any such examination and investigation, and the

production of books and papers. In the case of a municipal corporation,

industrial development agency, or school district, no such person shall

be compelled to appear or be examined elsewhere than within such

municipal corporation, industrial development agency, or school

district. In the case of any district other than a school district, no

such person may be compelled to appear or be examined elsewhere than

within the town or one of the towns in which such district or portion

thereof is located. In the case of an urban renewal agency, no such

person shall be compelled to appear or be examined outside the municipal

corporation wherein such agency is established. In the case of a fire

company, no such person shall be compelled to appear or be examined

outside the area served by the company. In the case of an activity, no

such person shall be compelled to appear outside the area served by the

activity. In the case of an organization under the control of one or

more municipal corporations, industrial development agencies, districts

or agencies, no such person shall be compelled to appear or to be

examined outside the county in which the organization has its principal

headquarters. Willful false swearing in such examination shall be

perjury and shall be punishable as such.

3. For purposes of this section, the term "a majority of the

organization's highest policy-making body" shall mean a majority of the

whole number of positions comprising such body, provided, however, that

if the documents establishing the organization's internal governance

allow such body to act by a majority of a quorum, then such term shall

mean a majority of the quorum.

Buffalo city comptroller. 1. Notwithstanding any other

provision of law to the contrary, the Buffalo city comptroller shall

have the power to examine into the financial affairs of the Buffalo

public school district and audit all school district accounts as the

comptroller deems necessary. The school district shall make available

all books, papers, records, other materials or information required by

the comptroller to conduct the examinations and audits authorized by

this section. The school district shall be provided sufficient time and

opportunity to respond to the findings and recommendations contained in

any audit document or any report as a result of an examination prior to

the release of any such audit or report. Any final audit document or

report shall contain any responses and/or comments submitted by the

school district.

2. The comptroller shall annually prepare and submit an audit report

on the financial status of the school district to the school board, the

mayor, the city council, the state comptroller and the state education

department and shall also be made available to the public upon request.

Any final report on the financial status of the school district shall

contain any responses and/or comments submitted by the school district.

The school district shall be given sufficient time and opportunity to

review the report and submit a response and/or comments prior to such

report's release.

Filing of report of examination and notice thereof. 1. A report

of such examination shall be made and shall be filed in the office of

the state comptroller and in the office of the clerk of the municipal

corporation, industrial development agency, district, agency or

activity, or with the secretary if there is no clerk. An additional copy

thereof shall be filed with the chief fiscal officer, except that in the

case of a school district, such additional copy shall be filed in the

office of the chairman of the board of trustees, the president of the

board of education or the sole trustee, as the case may be. When so

filed, each such report and copy thereof shall be a public record open

to inspection by any interested person.

2. (a) Within ten days after the filing of a report of examination

performed by the office of the state comptroller, a report of an

external audit performed by an independent public accountant or any

management letter prepared in conjunction with such an external audit

with the clerk of the municipal corporation, industrial development

agency, district, agency or activity, or with the secretary if there is

no clerk, he shall give public notice thereof in substantially the

following form: "Notice is hereby given that the fiscal affairs of (name

of municipal corporation, industrial development agency, district,

agency or activity) for the period beginning on............... and

ending on..............., have been examined by (the office of the state

comptroller or an independent public accountant), and that the (report

of examination performed by the office of the state comptroller or

report of, or management letter prepared in conjunction with, the

external audit by the independent public accountant) has been filed in

my office where it is available as a public record for inspection by all

interested persons. Pursuant to section thirty-five of the general

municipal law, the governing board of (name of municipal corporation,

district, agency or activity) may, in its discretion, prepare a written

response to the (report of examination performed by the office of the

state comptroller or the report of external audit or management letter

by independent public accountant) and file any such response in my

office as a public record for inspection by all interested persons not

later than (last date on which response may be filed)."

(b) Except as otherwise provided for a common school district, the

clerk, or secretary if there is no clerk, shall cause such notice to be

published at least once in the official newspaper, or if there be no

official newspaper, in a newspaper having general circulation in the

municipal corporation, industrial development agency, district or area

served by the agency or activity. If there be no newspaper having

general circulation, the clerk, or the secretary if there is no clerk,

shall post such notice conspicuously in ten public places in the

municipal corporation, industrial development agency, district or area

served. In a common school district which maintains a home school, the

clerk shall post such notice on the front door of the school house. In a

common school district which does not maintain a home school, the clerk

shall post such notice conspicuously in at least five public places in

the district.

(c) The clerk of every municipal corporation, industrial development

agency, district, agency and activity, or the secretary if there is no

clerk, shall file in his office proof of the publication or posting of

notices pursuant to this section. The proof so filed shall be in such

form as may be prescribed by the state comptroller.

(d) In each school district subject to the jurisdiction of a district

superintendent, under the provisions of article forty-five of the

education law, such district superintendent shall ascertain that the

public notice required by this subdivision has been published or posted,

as the case may be.

3. The clerk, or secretary if there is no clerk, shall present the

report of the examination to the governing body of the municipal

corporation, industrial development agency, district, agency or activity

for its consideration at the first meeting thereof held after the filing

of the report with the clerk or secretary.

4. (a) The governing board or other board, officer or employee of the

municipal corporation, industrial development agency, district, agency

or activity receiving a report of an external audit performed by an

independent public accountant or a management letter prepared in

conjunction with such an audit shall file in the office of the clerk of

the municipal corporation, industrial development agency, district,

agency or activity, or with the secretary if there is no clerk, and

shall furnish to the comptroller, a copy of the report or letter within

ten days after receipt. If the report or letter is not received by the

governing board, a copy shall be provided to the governing board within

three days after receipt by any other board, officer or employee

receiving the same.

(b) (1) Not later than ninety days after presentation to the governing

board of a report of examination performed by the office of the state

comptroller, or receipt by the governing board of any report of an

external audit performed by an independent public accountant or any

management letter in conjunction with such an audit, the governing board

may, in its discretion, provide to the comptroller, and file in the

office of the clerk, or with the secretary if there is no clerk, of the

municipal corporation, industrial development agency, district, agency

or activity, a written response to the findings and recommendations, if

any, in the report or letter. In the case of municipal corporations,

industrial development agency, districts, agencies or activities subject

to examination by the commissioner of education, any written response

shall also be provided to such commissioner.

(2) A written response prepared pursuant to subparagraph one of this

paragraph shall be in such form as may be prescribed by the comptroller

and shall include, with respect to each finding or recommendation, a

statement of the corrective actions taken or proposed to be taken, or if

corrective action is not taken or proposed, an explanation of the

reasons therefor. Any such written response shall also include a

statement on the status of corrective actions taken on findings or

recommendations contained in any previous report of examination, or

report of an external audit, or any management letter prepared in

conjunction therewith, by an independent public accountant for which a

written response was required. All officers and employees of the

municipal corporation, industrial development agency, district, agency

or activity shall fully cooperate with the governing board in the

preparation of the response by the governing board.

(c) The provisions of this subdivision shall not apply to any city

having a population of one million or more.

Systems of accounts. The state comptroller may formulate and

prescribe systems of keeping accounts for the municipal corporations,

districts, agencies and activities specified in section thirty of this

chapter. The comptroller, from time to time, whenever he shall deem it

necessary, may direct the installation of a system of keeping accounts

by any one or more of the municipal corporations, industrial development

agency, districts, agencies or activities for which such system was

formulated and prescribed. Any officer who shall refuse or willfully

neglect to comply with such direction of the comptroller within such

reasonable time as the comptroller may prescribe shall be guilty of a

misdemeanor. The comptroller may, however, and upon good and sufficient

cause shown shall, extend such prescribed time as may be reasonable and

necessary. The expense of installing a system of keeping accounts in

pursuance of this section shall be paid out of such appropriation as

shall be made to carry this article into effect.

Statistical report of comptroller. The substance of the reports

required by the provisions of this article shall be arranged by the

comptroller in such form as shall indicate the comparative receipts from

the various sources of revenue and the comparative costs of government

in the municipal corporations, industrial development agency, districts,

agencies and activities, and shall be published in an annual statement

of comparative statistics for each type or class of municipal

corporation, industrial development agency, district, agency or

activity. Such statement shall be issued at the expense of the state as

a public document and shall be submitted by the comptroller to the

legislature at each regular session.

Expense of examination. The expenses of examining the accounts

of any municipal corporation, industrial development agency, district,

agency or activity shall be paid out of such appropriation as shall be

made to carry the provisions of this article into effect.

Investment policies for local governments. 1. Each local

government, which for purposes of this section shall include counties,

cities, towns, villages, school districts including boards of

cooperative educational services and district corporations, within the

meaning of that term as set out in subdivision three of section

sixty-six of the general construction law, or any other governmental

subdivision of the state, shall by resolution adopt a comprehensive

investment policy which details the local government's operative policy

and instructions to officers and staff regarding the investing,

monitoring and reporting of funds of the local government. The

investment policy shall be annually reviewed by the local government.

2. Funds of the local government, for purposes of this section, shall

consist of all moneys and other financial resources available for

investment by the local government on its own behalf or on behalf of any

other entity or individual.

3. The investment policy adopted by the local government shall

include, but not be limited to, the following:

(a) A list of the permitted types of investments of the local

government, which shall be consistent with the appropriate provisions of

law relating to the local government and any additional requirements

pursuant to any contract with bondholders and noteholders or established

by the local government.

(b) Procedures and provisions to secure in a satisfactory manner the

local government's financial interest in investments.

(c) Standards for written agreements pursuant to which investments are

made. Such standards shall be consistent with the appropriate provisions

of law relating to the local government and any additional requirements

pursuant to any contract with bondholders and noteholders or established

by the local government.

(d) Procedures for the monitoring, control, deposit and retention of

investments and collateral.

(e) Standards for security agreements and custodial agreements with

banks or trust companies authorized to do business in the state of New

York, pursuant to which obligations and collateral are held by such

banks and trust companies for the local government. Such standards shall

be consistent with the appropriate provisions of law relating to the

local government and any additional requirements pursuant to any

contract with bondholders and noteholders or established by the local

government.

(f) Standards for the diversification of investments, including

diversification with respect to the permitted types of investments

listed in accordance with paragraph (a) of this subdivision and to the

firms with whom the local government transacts business. Such standards

may also specify the maximum percentage of moneys available for

temporary investment or the maximum dollar amount that the local

government is authorized to invest in any one permitted type of

investment or pursuant to transactions with any one firm.

(g) Standards for the qualification of firms with whom the local

government transacts business, such as criteria covering

creditworthiness, experience, capitalization, size and any other factors

that make a firm capable and qualified to transact business with the

local government.

(h) For purposes of this section, the term "firm" shall include, but

not be limited to, a bank or trust company as defined in subdivision one

of section ten of this chapter, the lead participant of a cooperative

investment agreement as defined in subdivision one of section

forty-nine-c of this chapter, and the seller of an obligation that is

purchased pursuant to a repurchase agreement.

4. Each local government shall have the power to amend its investment

policy from time to time in accordance with the provisions of this

section.

Definitions. For the purposes of this article, the following

terms shall have the following meanings:

1. "Cooperative investment agreement" shall mean the temporary

investment of moneys by more than one municipal corporation pursuant

to a municipal cooperation agreement entered into in accordance with

the provisions of article five-G of this chapter and this article. Such

term, however, shall not include investments made pursuant to a

municipal cooperation agreement that: (a) has as its primary purpose

the performance of a function, power or duty, or the provision of a

joint service, other than the investment of funds, provided that the

only moneys invested pursuant to such an agreement are those reasonably

necessary to perform such other function, power or duty or provide

such other joint service; or (b) identifies the specific investments

to be made thereunder and provides for the termination of the agreement

upon the sale, redemption or maturity of such investments.

2. "Irrevocable letter of credit" shall mean an irrevocable letter of

credit issued in favor of every participant in the agreement by a bank

whose commercial paper and other unsecured short-term debt obligations

(or, in the case of a bank which is the principal subsidiary of a

holding company, whose holding company's commercial paper and other

unsecured short-term debt obligations) are rated in one of the three

highest rating categories (based on the credit of such bank or holding

company) by at least one nationally recognized statistical rating

organization or by a bank that is in compliance with applicable federal

minimum risk-based capital requirements.

3. "Market value" shall mean market prices obtained from a nationally

recognized security pricing service or from a minimum of three primary

reporting dealers in government securities as determined by the federal

reserve bank.

4. "Municipal corporation" shall have the same meaning as in section

one hundred nineteen-n of this chapter.

5. "Participant" shall mean each municipal corporation that enters

into a cooperative investment agreement in accordance with the

provisions of this article.

Required elements of a cooperative investment agreement. Every

cooperative investment agreement shall contain, at a minimum, the

following:

1. a description of the creation, membership, powers and

responsibilities of the governing board of the cooperative investment

agreement as set forth in sections forty-four and forty-five of this

article.

2. a statement designating one of the participants as the lead

participant. Moneys to be invested pursuant to the cooperative

investment agreement and the investments made pursuant to the

cooperative investment shall be held in the custody of the lead

participant on behalf of all the participants. Moneys or investments

held in the custody of the lead participant on behalf of the

participants shall not be commingled with other moneys or investments of

the lead participant.

3. a statement that each participant shall have an undivided interest

in moneys and investments held by the lead participant on behalf of the

participants in the proportion that the total amount of contributions

made by that participant bears to the total amount of contributions by

all the participants.

4. a statement of the investment policy applicable to investments made

pursuant to the agreement. This investment policy shall conform to the

requirements of section thirty-nine of this chapter and shall also

include:

(a) a statement of the governing board's intention to maintain the

value of each participant's interest in the cooperative investments at a

stable value of one dollar,

(b) a statement of the types of investments authorized by section

eleven of this chapter in which moneys may be invested under the

agreement and, if deemed appropriate, further limitations pertaining to

matters such as the use of repurchase agreements and the purchase of

variable rate and structured obligations,

(c) a statement of the maximum time remaining to maturity of

individual investments permitted under the agreement and the maximum

weighted average maturity of all investments made pursuant to the

agreement as are deemed necessary to fulfill the investment policy

stated in the agreement and to ensure that a participant's investment

will be available when needed to meet expenditures; provided, however,

that the maximum time remaining to maturity of individual investments

shall not exceed three hundred ninety-seven days and the maximum

weighted average maturity of all investments shall not exceed sixty

days. Compliance under the cooperative investment agreement with the

maturity limitations stated in this subdivision shall be deemed to be

compliance with the requirements of paragraph a of subdivision three of

section eleven of this chapter, and

(d) standards for the diversification of investments, including

diversification with respect to types of investments and firms with whom

the governing board transacts business.

5. the participants' rights to make contributions and receive

distributions, the frequency with which earnings will be distributed

to the participants, and the circumstances, if any, under which a

participant's rights to make contributions or receive distributions may

be limited or deferred.

6. a description of the manner in which expenses incurred by the

governing board in administering the cooperative investment agreement,

including, but not limited to, the cost of procuring the services of

professionals to assist the governing board, the compensation of an

executive director, if one is appointed, and other costs of

administering the investments made pursuant to the agreement, are to be

apportioned among the participants.

7. a description of the methodology, including, but not limited to,

the amortized cost method, that will be utilized to establish the value

of each participant's interest in investments made pursuant to the

agreement, including the value of contributions and distributions, and

the calculation of yield thereon.

8. a provision requiring that the market value of investments made

pursuant to the agreement shall be determined at least monthly and

whenever the method of valuation authorized by the agreement does not

accurately reflect the value of participants' interests in such

investments.

9. a provision requiring that, at least once a month, the portfolio of

investments made pursuant to the agreement be tested for sensitivity to

changes in interest rates. This provision must require that the testing

methodology adopted by the board be reasonably designed to reliably

quantify the effect of a change in interest rates on the market

value of the portfolio.

10. a provision requiring that the governing board secure an

irrevocable letter of credit in an amount sufficient to cover any

potential losses as quantified pursuant to the testing described in

subdivision nine of this section. The cost of such irrevocable letter of

credit shall be deemed to be an expense incurred by the board in

administering the investments made pursuant to the agreement.

11. a statement that the governing board may procure the services of

professionals such as an administrator, investment advisor, independent

auditor, custodial bank, and any other professional services it deems

appropriate to assist the governing board in fulfilling its

responsibilities under the agreement, provided that: (a) the

professionals who will render such services, individually and

collectively, shall meet all qualifications deemed appropriate by the

governing board; (b) the procurement of such services shall be in

compliance with section one hundred four-b of this chapter, subject

to a request for proposal process at least every three years; (c) the

contracts for such services shall ensure compliance with the

requirements of sections ten and eleven of this chapter; and (d) the

charges, fees and other compensation for any contracted services

shall be clearly stated in written service contracts.

12. a provision requiring that each participant receive written

confirmation of each contribution made by or distribution made to the

participant no later than the following business day after which the

contribution or distribution occurs.

13. a provision requiring that each participant receive a monthly

statement that sets forth the following information for the preceding

month: (a) all activity by the participant; (b) the value of the

participant's interest under the agreement at the beginning and end of

the month; and (c) an itemization of all investments held under the

agreement as of the end of the month, including the market value of

each investment as of that date.

14. a provision requiring that each participant and the state

comptroller receive immediate notification of any event or

circumstance that may require a deferral of distributions or may cause

investment losses not anticipated by the investment policy and of any

other material adverse event relating to the investments made pursuant

to the agreement.

15. a provision requiring that a certified public accountant annually

conduct an audit, in accordance with generally accepted government

auditing standards, of the activities undertaken pursuant to the

agreement. A copy of this annual audit shall be distributed to each

participant and to the state comptroller within ninety days after the

close of the fiscal year established under the agreement.

16. a provision requiring that each participant annually receive,

and each prospective participant receive prior to their participation

in the agreement, an information statement that includes, at a

minimum, the following: (a) a brief history of the agreement; (b) a

description of the organization and terms of the cooperative

investment agreement, including the powers and responsibilities of the

governing board and the qualifications of any professionals retained

under the agreement; (c) a description of the investment objectives,

policies and practices contained in the agreement including those

pertaining to liquidity, methodology for determining participants'

interests, distribution of earning and calculation of yield; (d) a

description of the current investments held under the agreement; (e) a

listing of any fees or charges to be incurred by participants; and (f)

a description of the required procedures for initiation and termination

of participation in the agreement.

17. a provision requiring that all participants receive at least

once a year a report detailing the following information for the

preceding twelve months: (a) the portfolio of investments currently

held pursuant to the agreement, including, for each investment, the

market value, time remaining to maturity, interest earned and

realized, and unrealized gains and losses; (b) the overall investment

results, yield and weighted average maturity; (c) a list of the fees

paid for all professional services procured under the agreement; and

(d) a statement of all other expenses incurred by the governing board in

administering the investments made pursuant to the agreement.

18. a provision requiring that, if the governing board obtains a

rating from a nationally recognized statistical rating organization,

such rating and any subsequent changes therein be disclosed to each

participant.

Governing board; creation and membership. 1. Every cooperative

investment agreement shall be administered by a governing board. The

numerical membership of the board shall be not less than ten percent of

the total number of participants in the agreement as of April first each

year; provided, however, that in no event shall the numerical membership

of the board be less than three, except in those instances where the

cooperative investment agreement has only two participants, in which

event the numerical membership of the board shall be two; and provided

further that in no event shall the numerical membership of the board be

more than fifteen. All board members shall be chief fiscal officers

of participants or such other officers or employees of participants

having knowledge and expertise in financial matters. Candidates for

board membership shall be nominated by the participants they represent.

2. Of the initial governing board members, one-third shall serve one

year terms, one-third shall serve two year terms, and one-third shall

serve three year terms. In the event that the board has only two

members, one member of the initial board shall serve a two year term and

the other member shall serve a three year term. Thereafter, all board

members shall serve three year terms. An annual election shall be held

for those board members whose terms have expired. The first such

election shall be held within ninety days of the date on which the

participants enter into the cooperative investment agreement.

Thereafter, the board shall establish an annual date for the

election. All participants shall be given at least thirty days notice

of an election and the opportunity to vote by mail or proxy.

3. If a member becomes ineligible for office because he or she is no

longer the chief fiscal officer or other officer or employee of a

participant or the municipal corporation he or she represents is no

longer a participant in the agreement, or if for any other reason a

member resigns or can no longer fulfill the obligations of membership,

then the remaining members of the board may appoint an eligible chief

fiscal officer to fill the vacancy until the next annual election at

which time the unexpired term of the vacancy shall be filled in the

same manner as all board member positions.

4. A quorum of the members must be present to transact any board

business. Two-thirds of the membership shall constitute a quorum. To

transact any business or exercise any power, the board shall act by a

majority vote of the members present at any meeting at which a quorum

is in attendance. A member of the board may designate a representative

to attend meetings, vote or otherwise act on his or her behalf.

5. The board shall meet at least quarterly at dates and times to be

established by the members of the board.

6. All members must have an appropriate bond or undertaking in an

amount to be determined by the board. The cost of such bond or

undertaking shall be deemed to be an expense incurred by the board in

administering the investments made pursuant to the agreement.

7. The provisions of article eighteen of this chapter shall apply to

the governing board as if the governing board were a municipality. No

member of the governing board shall have an interest in a contract

entered into by the governing board prohibited by section eight hundred

one of this chapter. In addition, except as provided in section eight

hundred two of this chapter, an officer or employee of a participant

shall be prohibited from having an interest, as defined in subdivision

three of section eight hundred of this chapter, in any contract entered

into by the governing board of the cooperative investment agreement.

8. No member may receive compensation from the cooperative investment

agreement for service as a board member, but may be reimbursed for

actual and necessary expenses incurred in the performance of his or

her official duties as a board member.

Governing board; powers and responsibilities. The governing

board of a cooperative investment agreement shall have the following

powers and responsibilities:

1. administering all aspects of the agreement;

2. entering into those contracts deemed appropriate to assist in the

management of the agreement;

3. where authorized under the agreement: (a) delegating the daily

responsibilities of making investment decisions pursuant to the

agreement to the chief fiscal officer of one of the participants,

provided that such delegation shall in no way relieve the board of its

responsibilities under this article, and provided further that such

chief fiscal officer has an appropriate bond or undertaking, the cost of

which shall be deemed to be an expense incurred by the board in

administering the investments made pursuant to the agreement, in an

amount to be determined by the board; or (b) appointing an executive

director to assume the daily responsibilities of making investment

decisions pursuant to the agreement, provided that such appointment

shall in no way relieve the board of its responsibilities under

this article, and provided further that such executive director: (i)

serves at the pleasure of the board; (ii) has been determined by the

board to be qualified to assume such responsibilities; (iii) shall be

compensated in an amount to be determined by the governing board, such

compensation being deemed to be an expense incurred by the board in

administering the investments made pursuant to the agreement; (iv) shall

be subject to such other provisions, described in paragraph b of

subdivision two of section one hundred nineteen-o of this chapter,

relating to his or her employment as are included in the agreement; and

(v) has an appropriate bond or undertaking, the cost of which shall be

deemed to be an expense incurred by the board in administering the

investments made pursuant to the agreement, in an amount to be

determined by the board;

4. monitoring compliance with the investment policy established under

the agreement;

5. monitoring compliance with the maturity limitations established

under the agreement and in this article; and

6. monitoring compliance with the reporting and disclosure

requirements established under the agreement.

Cause of action not barred. A cause of action in law or equity

against any municipality in the state of New York, or its proper

officers, arising from the action of such municipality in derogation of

its previous grant or covenant, where a previous action shall not have

succeeded, in whole or in part, owing to the failure of the said

municipality to produce or prove certain written evidence, which was

essential to the plaintiff's claim, shall not be barred by the operation

of the statutes limiting the time for the enforcement of civil remedies

in favor of the successor in interest to the person entitled to any

benefit or damages by reason of such grant, covenant or action of said

municipality.

Municipal liability for negligent operation of vehicles. 1.

Every city, town and village shall be liable for the negligence of a

person duly appointed by the governing board or body of the

municipality, or by any board, body, commission or other officer

thereof, to operate a municipally owned vehicle within the state in the

discharge of a statutory duty imposed upon the municipality, provided

the appointee at the time of the accident or injury was acting in the

discharge of his duties and within the scope of his employment. Every

such appointee shall, for the purpose of this section, be deemed an

employee of the municipality, notwithstanding the vehicle was being

operated in the discharge of a public duty for the benefit of all

citizens of the community and the municipality derived no special

benefit in its corporate capacity.

2. The provisions of this section shall not apply to the city of New

York.

Municipal liability for negligent operation of vehicles or

other facility of transportation. 1. Every county, city, town, village

and other subdivision of government, notwithstanding any inconsistent

provisions of law, general, special or local or any limitation contained

in the provision of any city charter, shall be liable and shall assume

the liability for the negligence of, and shall save harmless, a person

duly appointed by the governing board or body of the municipality, or by

any board, body, commission or other officer thereof, in the operation

of a municipally owned vehicle or other facility of transportation

within the state in the discharge of a statutory duty imposed upon such

person or municipality, provided the appointee at the time of the

accident or injury was acting in the discharge of his duties and within

the scope of his employment. Every such appointee shall, for the purpose

of this section, be deemed an employee of the municipality,

notwithstanding the vehicle or other facility of transportation was

being operated in the discharge of a public duty for the benefit of all

citizens of the community and the municipality derived no special

benefit in its corporate capacity.

2. The provisions of this section shall not apply to the city of New

York.

Liability for negligent operation of certain vehicles in the

performance of duty by police officers and paid firefighters. 1. Every

city, town, village and fire district, notwithstanding any inconsistent

provision of law, general, special or local or the limitation contained

in the provisions of any city charter, shall be liable for, and shall

assume the liability to the extent that it shall save harmless any duly

appointed police officers of the municipality or any duly appointed paid

firefighters of the municipality or fire district for, the negligence of

such appointee in the operation of a vehicle upon the public streets or

highways of the municipality or fire district in the discharge of a

statutory duty imposed upon such appointee or municipality or fire

district, provided the appointee at the time of the accident, injury or

damages complained of, was acting in the performance of his or her

duties and within the scope of his or her employment.

A police officer of a municipality or a paid firefighter of a

municipality or fire district, although excused from official duty at

the time, for the purposes of this section, shall be deemed to be acting

in the discharge of duty when engaged in the immediate and actual

performance of a public duty imposed by law and such public duty

performed was for the benefit of all the citizens of the community and

the municipality or fire district derived no special benefit in its

corporate capacity.

No action or special proceeding instituted pursuant to the provisions

of this section or section fifty-b of this article, shall be prosecuted

or maintained against the municipality, fire district or appointee,

unless notice of claim shall have been made and served in compliance

with section fifty-e of this article. Every such action shall be

commenced pursuant to the provisions of section fifty-i of this article.

2. The provisions of this section shall not apply to the city of New

York.

Municipal liability for malpractice of certain physicians,

resident physicians, internes, dentists, podiatrists and optometrists in

public institutions. 1. Notwithstanding any inconsistent provision of

law, general, special or local, or limitation contained in the

provisions of any city charter, every municipal corporation shall be

liable for, and shall assume the liability, to the extent that it shall

save him harmless, of any resident physician, physician, interne,

dentist, podiatrist or optometrist rendering medical, dental, podiatry

or optometry services of any kind to a person without receiving

compensation from such person in a public institution maintained in

whole or in part by the municipal corporation, or in the course of a

home care service maintained by such public institution, for damages for

personal injuries alleged to have been sustained by such person by

reason of the malpractice of such resident physician, physician,

interne, dentist, podiatrist or optometrist while engaged in the

rendition of such services. Every such resident physician, physician,

interne, dentist, podiatrist or optometrist for the purpose of this

section, shall be deemed an employee of the municipal corporation

notwithstanding that the municipal corporation derived no special

benefit in its corporate capacity.

2. No action shall be maintained under this section against such

municipality, resident physician, physician, interne, dentist,

podiatrist or optometrist unless a notice of claim shall have been made

and served in compliance with section fifty-e of this chapter. Every

such action shall be commenced pursuant to the provisions of section

fifty-i of this chapter.

3. The provisions of this section shall not apply to the city of New

York.

Notice of claim. 1. When service required; time for service;

upon whom service required.

(a) In any case founded upon tort where a notice of claim is required

by law as a condition precedent to the commencement of an action or

special proceeding against a public corporation, as defined in the

general construction law, or any officer, appointee or employee thereof,

the notice of claim shall comply with and be served in accordance with

the provisions of this section within ninety days after the claim

arises; except that in wrongful death actions, the ninety days shall run

from the appointment of a representative of the decedent's estate.

Notwithstanding any provision of law to the contrary, this section shall

not apply to any otherwise time-barred civil claims or causes of action

revived by section two hundred eight-a of the civil practice law and

rules. This exemption shall not apply to any claim that was timely under

the otherwise applicable statute of limitations.

(b) Service of the notice of claim upon an officer, appointee or

employee of a public corporation shall not be a condition precedent to

the commencement of an action or special proceeding against such person.

If an action or special proceeding is commenced against such person, but

not against the public corporation, service of the notice of claim upon

the public corporation shall be required only if the corporation has a

statutory obligation to indemnify such person under this chapter or any

other provision of law.

2. Form of notice; contents. The notice shall be in writing, sworn to

by or on behalf of the claimant, and shall set forth: (1) the name and

post-office address of each claimant, and of his attorney, if any; (2)

the nature of the claim; (3) the time when, the place where and the

manner in which the claim arose; and (4) the items of damage or injuries

claimed to have been sustained so far as then practicable but a notice

with respect to a claim against a municipal corporation other than a

city with a population of one million or more persons shall not state

the amount of damages to which the claimant deems himself entitled,

provided, however, that the municipal corporation, other than a city

with a population of one million or more persons, may at any time

request a supplemental claim setting forth the total damages to which

the claimant deems himself entitled. A supplemental claim shall be

provided by the claimant within fifteen days of the request. In the

event the supplemental demand is not served within fifteen days, the

court, on motion, may order that it be provided by the claimant.

3. How served; when service by mail complete; defect in manner of

service; return of notice improperly served.

(a) The notice shall be served on the public corporation against which

the claim is made by delivering a copy thereof personally, or by

registered or certified mail, to the person designated by law as one to

whom a summons in an action in the supreme court issued against such

corporation may be delivered, or to an attorney regularly engaged in

representing such public corporation or, in a city with a population of

over one million, by electronic means in a form and manner prescribed by

such city.

(b) Service by registered or certified mail shall be complete upon

deposit of the notice of claim, enclosed in a postpaid properly

addressed wrapper, in a post office or official depository under the

exclusive care and custody of the United States post office department

within the state.

(c) If the notice is served within the period specified by this

section, but in a manner not in compliance with the provisions of this

subdivision, the service shall be valid if the public corporation

against which the claim is made demands that the claimant or any other

person interested in the claim be examined in regard to it, or if the

notice is actually received by a proper person within the time specified

by this section, and the public corporation fail to return the notice,

specifying the defect in the manner of service, within thirty days after

the notice is received.

(d) If the notice is served within the period specified by this

section and is returned for the reason and within the time provided in

this subdivision, the claimant may serve a new notice in a manner

complying with the provisions of this subdivision within ten days after

the returned notice is received. If a new notice is so served within

that period, it shall be deemed timely served.

(e) If the notice is served by electronic means, as defined in

paragraph two of subdivision (f) of rule twenty-one hundred three of the

civil practice law and rules, it shall contain the information required

under the provisions of subdivision two of this section. In addition,

such notice shall contain the following declaration: "I certify that all

information contained in this notice is true and correct to the best of

my knowledge and belief. I understand that the willful making of any

false statement of material fact herein will subject me to criminal

penalties and civil liabilities." Service of the notice shall be

complete upon successful transmission of the notice as indicated by an

electronic receipt provided by such city, which shall transmit an

electronic receipt number to the claimant forthwith.

(f) Service of a notice of claim on the secretary of state as agent of

any public corporation, as defined in subdivision one of section

sixty-six of the general construction law, whatsoever created or

existing by virtue of the laws of the state of New York upon whom

service of a notice of claim is required as a condition precedent to

being sued, may be made by personally delivering to and leaving with the

secretary of state or a deputy, or with any person authorized by the

secretary of state to receive such service, at the office of the

department of state in the city of Albany, duplicate copies of such

notice of claim together with the statutory fee, which fee shall be a

taxable disbursement but only in the amount equal to the portion of the

fee collected by the public corporation in accordance with subdivision

four of this section. Service on such public corporation shall be

complete when the secretary of state is so served. Within ten days after

receiving a notice of claim, the secretary of state shall either: (1)

send one of such copies by certified mail, return receipt requested, to

such public corporation, at the post office address on file in the

department of state, specified for the purpose; or (2) electronically

transmit a copy to such public corporation at the electronic address on

file with the department of state specified for that purpose; or (3)

transmit a copy to such public corporation by any other such means or

procedure established by the secretary of state, provided that such

other means or procedure of transmittal must be verifiable.

4. Requirements of section exclusive except as to conditions precedent

to liability for certain defects or snow or ice. No other or further

notice, no other or further service, filing or delivery of the notice of

claim, and no notice of intention to commence an action or special

proceeding, shall be required as a condition to the commencement of an

action or special proceeding for the enforcement of the claim; provided,

however, that nothing herein contained shall be deemed to dispense with

the requirement of notice of the defective, unsafe, dangerous or

obstructed condition of any street, highway, bridge, culvert, sidewalk

or crosswalk, or of the existence of snow or ice thereon, where such

notice now is, or hereafter may be, required by law, as a condition

precedent to liability for damages or injuries to person or property

alleged to have been caused by such condition, and the failure or

negligence to repair or remove the same after the receipt of such

notice.

5. Application for leave to serve a late notice.

Upon application, the court, in its discretion, may extend the time to

serve a notice of claim specified in paragraph (a) of subdivision one of

this section, whether such service was made upon a public corporation or

the secretary of state. The extension shall not exceed the time limited

for the commencement of an action by the claimant against the public

corporation. In determining whether to grant the extension, the court

shall consider, in particular, whether the public corporation or its

attorney or its insurance carrier acquired actual knowledge of the

essential facts constituting the claim within the time specified in

subdivision one of this section or within a reasonable time thereafter.

The court shall also consider all other relevant facts and

circumstances, including: whether the claimant was an infant, or

mentally or physically incapacitated, or died before the time limited

for service of the notice of claim; whether the claimant failed to serve

a timely notice of claim by reason of his justifiable reliance upon

settlement representations made by an authorized representative of the

public corporation or its insurance carrier; whether the claimant in

serving a notice of claim made an excusable error concerning the

identity of the public corporation against which the claim should be

asserted; if service of the notice of claim is attempted by electronic

means pursuant to paragraph (e) of subdivision three of this section,

whether the delay in serving the notice of claim was based upon the

failure of the computer system of the city or the claimant or the

attorney representing the claimant; that such claimant or attorney, as

the case may be, submitted evidence or proof as is reasonable showing

that (i) the submission of the claim was attempted to be electronically

made in a timely manner and would have been completed but for the

failure of the computer system utilized by the sender or recipient, and

(ii) that upon becoming aware of both the failure of such system and the

failure of the city to receive such submission, the claimant or attorney

had insufficient time to make such claim within the permitted time

period in a manner as otherwise prescribed by law; and whether the delay

in serving the notice of claim substantially prejudiced the public

corporation in maintaining its defense on the merits.

An application for leave to serve a late notice shall not be denied on

the ground that it was made after commencement of an action against the

public corporation.

6. Mistake, omission, irregularity or defect. At any time after the

service of a notice of claim and at any stage of an action or special

proceeding to which the provisions of this section are applicable, a

mistake, omission, irregularity or defect made in good faith in the

notice of claim required to be served by this section, not pertaining to

the manner or time of service thereof, may be corrected, supplied or

disregarded, as the case may be, in the discretion of the court,

provided it shall appear that the other party was not prejudiced

thereby.

7. Applications under this section. All applications under this

section shall be made to the supreme court or to the county court: (a)

in a county where the action may properly be brought for trial, (b) if

an action to enforce the claim has been commenced, in the county where

the action is pending, or (c) in the event that there is no motion term

available in any of the counties specified in clause (a) or (b) hereof,

in any adjoining county. Where the application is for leave to serve a

late notice of claim, it shall be accompanied by a copy of the proposed

notice of claim.

8. Inapplicability of section. (a) This section shall not apply to

claims arising under the provisions of the workers' compensation law,

the volunteer firefighters' benefit law, or the volunteer ambulance

workers' benefit law or to claims against public corporations by their

own infant wards.

(b) This section shall not apply to: (i) any claim made for physical,

psychological, or other injury or condition suffered as a result of

conduct which would constitute a sexual offense as defined in article

one hundred thirty of the penal law committed against a child less than

eighteen years of age, incest as defined in section 255.27, 255.26 or

255.25 of the penal law committed against a child less than eighteen

years of age, or the use of a child in a sexual performance as defined

in section 263.05 of the penal law committed against a child less than

eighteen years of age; or

(ii) any civil claim or cause of action revived pursuant to section

two hundred fourteen-j of the civil practice law and rules.

Recording of notice of claim. 1. Wherever a notice of claim is

required by section fifty-e of this chapter as a condition precedent to

the commencement of an action or proceeding against a municipal

corporation or any authority or commission heretofore or hereafter

continued or created by the public authorities law, or any officer,

appointee or employee thereof, every such municipal corporation and

every such authority or commission shall make and keep a record,

numbered consecutively and indexed alphabetically according to the name

of the claimant, of each notice of claim filed in compliance with such

requirement and of the disposition of the claim so noticed. Wherever

such notice of claim relates to a cause of action against a municipal

corporation or any such authority or commission for damages or injuries

to person or property sustained in consequence of any street, highway,

bridge, culvert, sidewalk or crosswalk being out of repair, unsafe,

dangerous or obstructed, or in consequence of the existence of snow or

ice thereon, every municipal corporation and every such authority or

commission shall keep an additional record of each such notice of claim

indexed according to the location of the alleged defective, unsafe,

dangerous or obstructed condition. The record shall be made and kept by

an officer or employee designated for that purpose by the governing body

of such municipal corporation or of such authority or commission. In the

absence of such designation the record shall be kept by the secretary of

such authority or commission or by the clerk of such municipal

corporation, except in the counties, where it shall be kept by the clerk

of the board of supervisors, and except in the city of New York, where

it shall be kept by the comptroller or a person designated by him for

that purpose. The record of each claim shall be preserved for a period

of five years after the date of the final disposition thereof.

2. The record shall set forth: (1) the name and post-office address of

the claimant and of his attorney, if any; (2) the date of service; (3)

the time, place and manner of injury; (4) the nature of the injury and

amount claimed; (5) whether the claim was approved or disapproved, with

the date; (6) whether referred to an insurance carrier, with the date;

(7) the carrier's disposition of the claim with the date; (8) the date

of service of a complaint; (9) the name and address of any named

co-defendant; (10) the name and address of any third-party defendant;

(11) the municipal corporation's equitable share determined in

accordance with the relative culpability of each party pursuant to an

itemized decision or itemized jury verdict; (12) the extent to which the

municipal corporation has paid more than such equitable share. (13) the

date and result of any trial; (14) the date and result of any appeal;

(15) the date and amount of any settlement; (16) the date and amount of

any judgment paid; (17) the reason and date the file was closed.

4. This section shall be applicable notwithstanding any inconsistent

provisions of law, general, special or local, or any limitation

contained in the provisions of any city charter.

Recording of notice of defect. 1. Wherever any statute, city

charter or local law provides that no civil action shall be maintained

against a city for damages or injuries to person or property sustained

in consequence of any street, highway, bridge, culvert, sidewalk or

crosswalk being out of repair, unsafe, dangerous or obstructed, or in

consequence of the existence of snow or ice thereon, unless it appear

that written notice of the defective, unsafe, dangerous or obstructed

condition, or of the existence of the snow or ice, was actually given to

the city or its specified officer or employee and there was a failure or

neglect within a reasonable time after the giving of such notice to

repair or remove the defect, danger or obstruction complained of, or to

cause the snow or ice to be removed, or the place otherwise made

reasonably safe, the city shall keep an indexed record, in a separate

book, of all written notices which it shall receive of the existence of

such defective, unsafe, dangerous or obstructed condition, or of such

snow or ice, which record shall state the date of receipt of the notice,

the nature and location of the condition stated to exist, and the name

and address of the person from whom the notice is received. All such

written notices shall be indexed according to the location of the

alleged defective, unsafe, dangerous or obstructed condition, or the

location of accumulated snow or ice.

2. Where the statute, charter or local law requires that the written

notice be given to a specified city officer or employee the record shall

be made and kept by the person so specified. Where the statute, charter

or local law requires that the written notice be given to any of several

specified city officers or employees, or omits to specify the officer or

employee to whom the written notice shall be given, the record shall be

made and kept by an officer or employee designated for that purpose by

the governing body of the city. In the absence of such designation the

record shall be made and kept by the commissioner of public works of the

city or, if there be no officer of that title, by an officer exercising

corresponding duties. The record of notices of defects shall be a public

record. The record of each notice shall be preserved for a period of

five years after the date it is received.

3. This section shall be applicable notwithstanding any inconsistent

provisions of law, general, special or local, or any limitation

contained in the provisions of any city charter.

Examination of claims. 1. Wherever a notice of claim is filed

against a city, county, town, village, fire district, ambulance district

or school district the city, county, town, village, fire district,

ambulance district or school district shall have the right to demand an

examination of the claimant relative to the occurrence and extent of the

injuries or damages for which claim is made, which examination shall be

upon oral questions unless the parties otherwise stipulate and may

include a physical examination of the claimant by a duly qualified

physician. If the party to be examined desires, he or she is entitled to

have such examination in the presence of his or her own personal

physician and such relative or other person as he or she may elect.

Exercise of the right to demand a physical examination of the claimant

as provided in this section shall in no way affect the right of a city,

county, town, village, fire district, ambulance district or school

district in a subsequent action brought upon the claim to demand a

physical examination of the plaintiff pursuant to statute or court rule.

2. The demand for examination as provided in subdivision one of this

section shall be made by the chief executive officer or, where there is

no such officer, by the chairman of the governing body of the city,

county, town, village, fire district or school district or by such

officer, agent or employee as may be designated by him for that purpose.

The demand shall be in writing and shall be served personally or by

registered or certified mail upon the claimant unless the claimant is

represented by an attorney, when it shall be served personally or by

mail upon his attorney. The demand shall give reasonable notice of the

examination. It shall state the person before whom the examination is to

be held, the time, place and subject matter thereof and, if a physical

examination is to be required, it shall so state. If the place of

examination is located outside the municipality against which the claim

is made, the claimant may demand, within ten days of such service, that

the examination be held at a location within such municipality. Such

location shall be determined by the municipality. If a physical

examination is to be required and there is no appropriate place for such

an examination within the municipality, such examination shall be given

at a location as close to such municipality as practicable. No demand

for examination shall be effective against the claimant for any purpose

unless it shall be served as provided in this subdivision within ninety

days from the date of filing of the notice of claim, or if service of

the notice of claim is made by service upon the secretary of state

pursuant to section fifty-three of this article, within one hundred days

from the date of such service.

3. In any examination required pursuant to the provisions of this

section the claimant shall have the right to be represented by counsel.

The examination shall be conducted upon oath or affirmation. The officer

or person before whom the examination is had shall take down or cause to

be taken down every question and answer unless the parties consent that

only the substance of the testimony be inserted. The testimony so taken,

together with the report of the examining physician where a physical

examination is required, shall constitute the record of the examination.

The transcript of the record of an examination shall not be subject to

or available for public inspection, except upon court order upon good

cause shown, but shall be furnished to the claimant or his attorney upon

request.

4. A transcript of the testimony taken at an examination pursuant to

the provisions of this section may be read in evidence by either party,

in an action founded upon the claim in connection with which it was

taken, at the trial thereof or upon assessment of damages or upon

motion. In an action by an executor or administrator to recover damages

for a wrongful act, neglect or default by which a decedent's death was

caused, the testimony of such decedent taken pursuant to the provisions

of this section in respect of such wrongful act, neglect or default may

be read in evidence.

5. Where a demand for examination has been served as provided in

subdivision two of this section no action shall be commenced against the

city, county, town, village, fire district or school district against

which the claim is made unless the claimant has duly complied with such

demand for examination, which compliance shall be in addition to the

requirements of section fifty-e of this chapter. If such examination is

not conducted within ninety days of service of the demand, the claimant

may commence the action. The action, however, may not be commenced until

compliance with the demand for examination if the claimant fails to

appear at the hearing or requests an adjournment or postponement beyond

the ninety day period. If the claimant requests an adjournment or

postponement beyond the ninety day period, the city, county, town,

village, fire district or school district shall reschedule the hearing

for the earliest possible date available.

Presentation of tort claims; commencement of actions. 1. No

action or special proceeding shall be prosecuted or maintained against a

city, county, town, village, fire district or school district for

personal injury, wrongful death or damage to real or personal property

alleged to have been sustained by reason of the negligence or wrongful

act of such city, county, town, village, fire district or school

district or of any officer, agent or employee thereof, including

volunteer firefighters of any such city, county, town, village, fire

district or school district or any volunteer firefighter whose services

have been accepted pursuant to the provisions of section two hundred

nine-i of this chapter, unless, (a) a notice of claim shall have been

made and served upon the city, county, town, village, fire district or

school district in compliance with section fifty-e of this article, (b)

it shall appear by and as an allegation in the complaint or moving

papers that at least thirty days have elapsed since the service of such

notice, or if service of the notice of claim is made by service upon the

secretary of state pursuant to section fifty-three of this article, that

at least forty days have elapsed since the service of such notice, and

that adjustment or payment thereof has been neglected or refused, and

(c) the action or special proceeding shall be commenced within one year

and ninety days after the happening of the event upon which the claim is

based; except that wrongful death actions shall be commenced within two

years after the happening of the death.

2. This section shall be applicable notwithstanding any inconsistent

provisions of law, general, special or local, or any limitation

contained in the provisions of any city charter.

3. Nothing contained herein or in section fifty-h of this chapter

shall operate to extend the period limited by subdivision one of this

section for the commencement of an action or special proceeding.

4. (a) Notwithstanding any other provision of law to the contrary,

including any other subdivision of this section, section fifty-e of this

article, section thirty-eight hundred thirteen of the education law, and

the provisions of any general, special or local law or charter requiring

as a condition precedent to commencement of an action or special

proceeding that a notice of claim be filed or presented, any cause of

action against a public corporation for personal injuries suffered by a

participant in World Trade Center rescue, recovery or cleanup operations

as a result of such participation which is barred as of the effective

date of this subdivision because the applicable period of limitation has

expired is hereby revived, and a claim thereon may be filed and served

and prosecuted provided such claim is filed and served within one year

of the effective date of this subdivision.

(b) For the purposes of this subdivision:

(1) "participant in World Trade Center rescue, recovery or cleanup

operations" means any employee or volunteer that:

(i) participated in the rescue, recovery or cleanup operations at the

World Trade Center site; or

(ii) worked at the Fresh Kills Land Fill in the city of New York after

September eleventh, two thousand one; or

(iii) worked at the New York city morgue or the temporary morgue on

pier locations on the west side of Manhattan after September eleventh,

two thousand one; or

(iv) worked on the barges between the west side of Manhattan and the

Fresh Kills Land Fill in the city of New York after September eleventh,

two thousand one.

(2) "World Trade Center site" means anywhere below a line starting

from the Hudson River and Canal Street; east on Canal Street to Pike

Street; south on Pike Street to the East River; and extending to the

lower tip of Manhattan.

5. Notwithstanding any provision of law to the contrary, this section

shall not apply to any claim made against a city, county, town, village,

fire district or school district for physical, psychological, or other

injury or condition suffered as a result of conduct which would

constitute a sexual offense as defined in article one hundred thirty of

the penal law committed against a child less than eighteen years of age,

incest as defined in section 255.27, 255.26 or 255.25 of the penal law

committed against a child less than eighteen years of age, or the use of

a child in a sexual performance as defined in section 263.05 of the

penal law committed against a child less than eighteen years of age.

6. Notwithstanding any provision of law to the contrary, any person

who suffers physical, psychological, or other injury or condition while

in custody shall have, pursuant to section two hundred eight-a of the

civil practice law and rules, the full benefit of the limitations period

provided in this section and, in addition, shall have a two-year window

following the date of the person's release from that period of custody

within which to commence an action based on such injury or condition.

For any otherwise time-barred civil claims or causes of action revived

by section two hundred eight-a of the civil practice law and rules, no

notice of claim shall be required as a condition precedent to the

commencement of such action or special proceeding. This exemption shall

not apply to any claim that was timely under the otherwise applicable

statute of limitations.

* § 50-j. Liability of police officers for negligence in the

performance of duty. 1. Notwithstanding the provisions of any general,

special or local law, charter or code to the contrary, every city,

county, town, village, authority or agency shall be liable for, and

shall assume the liability to the extent that it shall save harmless,

any duly appointed police officer of such municipality, authority or

agency for any negligent act or tort, provided such police officer, at

the time of the negligent act or tort complained of, was acting in the

performance of his duties and within the scope of his employment.

2. For purposes of this section, a police officer of any such

municipal corporation, authority or agency, although excused from

official duty at the time, shall be deemed to be acting in the discharge

of duty when engaged in the immediate and actual performance of a public

duty imposed by law and such public duty performed was for the benefit

of the citizens of the community wherein such public duty was performed

and the municipal corporation, authority or agency derived no special

benefit in its corporate capacity.

3. No action or special proceeding instituted hereunder shall be

prosecuted or maintained against the municipality, authority or agency

concerned or such police officer unless notice of claim shall have been

made and served upon such municipality, authority or agency in

compliance with section fifty-e of this chapter. Every such action shall

be commenced pursuant to the provisions of section fifty-i of this

chapter.

4. The provisions of this section shall not apply to the city of New

York.

5. The provisions of this section shall not apply to the New York city

housing authority.

6. a. In addition to the requirements of subdivision one of this

section, upon discretionary adoption of a local law, ordinance,

resolution, rule or regulation, any city, county, town, village,

authority, or agency shall provide for the defense of any civil action

or proceeding brought against a duly appointed police officer of such

municipality, authority or agency and shall indemnify and save harmless

such police officer from any judgment of a court of competent

jurisdiction whenever such action, proceeding or judgment is for

punitive or exemplary damages, arising out of a negligent act or other

tort of such police officer committed while in the proper discharge of

his duties and within the scope of his employment. Such municipality,

authority or agency is hereby authorized and empowered to purchase

insurance to cover the cost of such defense and indemnification.

b. The determination of whether any such police officer properly

discharged his duties within the scope of his employment shall be made

in a manner which shall be promulgated by the chief executive officer or

if there be none, the chief legislative officer, and adopted by the

governing board of such municipality, authority or agency.

* NB There are 2 § 50-j's

Civil actions against employees of the city of New York. 1.

As used in this section:

a. "Agency" shall mean a city, county, borough, or other office,

position, administration, council, department, division, bureau, board,

community board, commission, institution or agency of government, the

expenses of which are paid in whole or in part from the city treasury,

but shall not include, unless otherwise provided by law, any public

authority, public benefit corporation or board of education.

b. "City" shall mean the city of New York.

c. "Comptroller" shall mean the comptroller of the city.

d. "Corporation Council" shall mean the corporation council of the

city.

e. "Employee" shall mean any person holding a position by election,

appointment or employment in the service of any agency, whether or not

compensated, or a volunteer expressly authorized to participate in a

city sponsored volunteer program, but shall not include an independent

contractor. The term employee shall include a former employee, his

estate or judicially appointed personal representative.

2. At the request of the employee and upon compliance by the employee

with the provisions of subdivision four of this section, the city shall

provide for the defense of an employee of any agency in any civil action

or proceeding in any state or federal court including actions under

sections nineteen hundred eighty-one through nineteen hundred

eighty-eight of title forty-two of the United States code arising out of

any alleged act or omission which the corporation counsel finds occurred

while the employee was acting within the scope of his public employment

and in the discharge of his duties and was not in violation of any rule

or regulation of his agency at the time the alleged act or omission

occurred. This duty to provide for a defense shall not arise where such

civil action or proceeding is brought by or on behalf of the city or

state or an agency of either.

3. The city shall indemnify and save harmless its employees in the

amount of any judgment obtained against such employees in any state or

federal court, or in the amount of any settlement of a claim approved by

the corporation counsel and the comptroller, provided that the act or

omission from which such judgment or settlement arose occurred while the

employee was acting within the scope of his public employment and in the

discharge of his duties and was not in violation of any rule or

regulation of his agency at the time the alleged damages were sustained;

the duty to indemnify and save harmless prescribed by this subdivision

shall not arise where the injury or damage resulted from intentional

wrongdoing or recklessness on the part of the employee.

4. The duty to defend or indemnify and save harmless prescribed by

this section shall be conditioned upon (a) delivery to the corporation

counsel at the office of the law department of the city by the employee

of the original or a copy of any summons, complaint, process, notice,

demand or pleading within ten days after he is served with such

document, and (b) the full cooperation of the employee in the defense of

such action or proceeding and in defense of any action or proceeding

against the city based upon the same act or omission, and in the

prosecution of any appeal. Such delivery shall be deemed a request by

the employee that the city provide for his defense pursuant to this

section. In the event that the corporation counsel shall assume an

employee's defense and thereafter the employee fails to or refuses to

cooperate in the formation or presentation of his defense, the court

shall permit the corporation counsel to withdraw his representation ten

days after giving written notice to the employee of his intention to

discontinue such representation.

5. In the event that the act or omission upon which the court

proceeding against the employee is based was or is also the basis of a

disciplinary proceeding by the employee's agency against the employee,

representation by the corporation counsel and indemnification by the

city may be withheld (a) until such disciplinary proceeding has been

resolved and (b) unless the resolution of the disciplinary proceeding

exonerated the employee as to such act or omission.

6. Every action or proceeding instituted hereunder, including an

action brought to enforce a provision of sections nineteen hundred

eighty-one through nineteen hundred eighty-eight of title forty-two of

the United States code, shall be commenced pursuant to the provisions of

section fifty-i of this chapter and within one year and ninety days. No

action or proceeding instituted hereunder, other than one instituted

pursuant to sections nineteen hundred eighty-one through nineteen

hundred eighty-eight of title forty-two of the United States code shall

be prosecuted or maintained against the city or any agency or an

employee unless notice of claim shall have been made and served upon the

city in compliance with section fifty-e of this chapter and within

ninety days after the claim arises.

7. The provisions of this section shall not be construed to impair,

alter, limit or modify the rights and obligations of any insurer under

any policy of insurance.

8. The provisions of this section shall apply to all actions and

proceedings pending upon the effective date thereof or thereafter

instituted, except that the provisions of subdivision six shall apply

only to actions and proceedings instituted on or after the effective

date of this section.

9. The provisions of this section shall not be construed in any way to

impair, alter, limit, modify, or abrogate or restrict any immunity

available to or conferred upon any unit, entity, officer or employee of

the city or any agency or any other level of government, or any right to

defense and/or indemnification provided for any governmental officer or

employee by, in accordance with, or by reason of, any other provision of

state, federal or local law or common law.

Civil actions against employees of the Nassau county police

department. Notwithstanding the provisions of any other law, code or

charter, the county of Nassau shall provide for the defense of any civil

action or proceeding brought against a duly appointed police officer of

the Nassau county police department and shall indemnify and save

harmless such police officer from any judgment of a court of competent

jurisdiction whenever such action, proceeding or judgment is for

damages, including punitive or exemplary damages, arising out of a

negligent act or other tort of such police officer committed while in

the proper discharge of his duties and within the scope of his

employment. Such proper discharge and scope shall be determined by a

majority vote of a panel consisting of one member appointed by the

Nassau county board of supervisors, one member appointed by the Nassau

county executive, and the third member being the Nassau county police

commissioner or a deputy police commissioner.

Civil actions against police and peace officers of Suffolk

county; defense and indemnification. 1. Notwithstanding the provisions

of any other general, special or local law, code or charter, Suffolk

county, upon discretionary adoption of a local law, ordinance,

resolution, rule or regulation, shall provide for the defense of any

civil action or proceeding brought against a duly appointed police or

peace officer, as defined in section 1.20 of the criminal procedure law,

employed by the county of Suffolk, and shall indemnify and save harmless

such officer from any judgment of a court of competent jurisdiction

whenever such action, proceeding or judgment is for damages, including

punitive or exemplary damages, arising out of a negligent act or other

tort of such officer committed while in the proper discharge of his

duties and within the scope of his employment.

2. The determination of whether any such officer properly discharged

his duties within the scope of his employment shall be made in a manner

which shall be established by rules and regulations and procedures

promulgated by the Suffolk county executive and adopted by the Suffolk

county legislature.

3. No action or special proceeding instituted hereunder shall be

prosecuted or maintained against Suffolk county or such officer unless

notice of claim shall have been made and served upon such county in

compliance with section fifty-e of this article. Every such action shall

be commenced pursuant to the provisions of section fifty-i of this

article.

Civil actions against peace officers, sheriffs, under-sheriffs

and deputy sheriffs of the county of Nassau. Notwithstanding the

provisions of any other law, code or charter, the county of Nassau shall

provide for the defense of any civil action or proceeding brought

against a duly appointed peace officer, sheriff, under-sheriff or deputy

sheriff of the county of Nassau and shall indemnify and save harmless

such peace officer, sheriff, under-sheriff or deputy sheriff from any

judgment of a court of competent jurisdiction whenever such action,

proceeding or judgment is for damages, including punitive or exemplary

damages, arising out of a negligent act or other tort of such peace

officer, sheriff, under-sheriff or deputy sheriff committed while in the

proper discharge of his duties and within the scope of his employment.

Such proper discharge and scope shall be determined by a majority vote

of a panel consisting of one member appointed by the Nassau county board

of supervisors, one member appointed by the Nassau county executive, and

the third member being either the Nassau county sheriff or in the case

of a probation officer the Nassau county director of probation.

Prosecution of officers for illegal acts. All officers, agents,

commissioners and other persons acting, or who have acted, for and on

behalf of any county, town, village or municipal corporation in this

state, and each and every one of them, may be prosecuted, and an action

may be maintained against them to prevent any illegal official act on

the part of any such officers, agents, commissioners or other persons,

or to prevent waste or injury to, or to restore and make good, any

property, funds or estate of such county, town, village or municipal

corporation by any person or corporation whose assessment, or by any

number of persons or corporations, jointly, the sum of whose assessments

shall amount to one thousand dollars, and who shall be liable to pay

taxes on such assessment in the county, town, village or municipal

corporation or by any person who owns shares in a cooperative housing

corporation where the pro rata share of the assessment attributable to

such shares shall amount to one thousand dollars (or by any number of

such persons, jointly, the sum of whose pro rata shares shall amount to

one thousand dollars) and where the cooperative housing corporation

shall be liable to pay taxes on such assessment in the county, town,

village or municipal corporation to prevent the waste or injury of whose

property the action is brought, or who have been assessed or paid taxes

therein upon any assessment of the above-named amount within one year

previous to the commencement of any such action, or who has been so

assessed but has not paid nor shall be liable to pay any or the full

amount of taxes on such assessment because of a veteran's exemption

therefrom pursuant to section four hundred fifty-eight of the real

property tax law, or who has been so assessed but has not paid nor shall

be liable to pay any or the full amount of taxes on such assessment

because of an exemption therefrom granted to persons sixty-five years of

age or over or their spouses pursuant to the real property tax law. Such

person or corporation upon the commencement of such action, shall

furnish a bond to the defendant therein, to be approved by a justice of

the supreme court or the county judge of the county in which the action

is brought, in such penalty as the justice or judge approving the same

shall direct, but not less than two hundred and fifty dollars, and to be

executed by any two of the plaintiffs, if there be more than one party

plaintiff, providing said two parties plaintiff shall severally justify

in the sum of five thousand dollars. Said bond shall be approved by

said justice or judge and be conditioned to pay all costs that may be

awarded the defendant in such action if the court shall finally

determine the same in favor of the defendant. The court shall require,

when the plaintiffs shall not justify as above mentioned, and in any

case may require two more sufficient sureties to execute the bond above

provided for. Such bond shall be filed in the office of the county clerk

of the county in which the action is brought, and a copy shall be served

with the summons in such action. If an injunction is obtained as herein

provided for, the same bond may also provide for the payment of the

damages arising therefrom to the party entitled to the money, the

auditing, allowing or paying of which was enjoined, if the court shall

finally determine that the plaintiff is not entitled to such injunction.

In case the waste or injury complained of consists in any board, officer

or agent in any county, town, village or municipal corporation, by

collusion or otherwise, contracting, auditing, allowing or paying, or

conniving at the contracting, audit, allowance or payment of any

fraudulent, illegal, unjust or inequitable claims, demands or expenses,

or any item or part thereof against or by such county, town, village or

municipal corporation, or by permitting a judgment to be recovered

against such county, town, village or municipal corporation, or against

himself in his official capacity, either by default or without the

interposition and proper presentation of any existing legal or equitable

defenses, or by any such officer or agent, retaining or failing to pay

over to the proper authorities any funds or property of any county,

town, village or municipal corporation, after he shall have ceased to be

such officer or agent, the court may, in its discretion, prohibit the

payment or collection of any such claims, demands, expenses or

judgments, in whole or in part, and shall enforce the restitution and

recovery thereof, if heretofore or hereafter paid, collected or retained

by the person or party heretofore or hereafter receiving or retaining

the same, and also may, in its discretion, adjudge and declare the

colluding or defaulting official personally responsible therefor, and

out of his property, and that of his bondsmen, if any, provide for the

collection or repayment thereof, so as to indemnify and save harmless

the said county, town, village or municipal corporation from a part or

the whole thereof; and in case of a judgment the court may in its

discretion, vacate, set aside and open said judgment, with leave and

direction for the defendant therein to interpose and enforce any

existing legal or equitable defense therein, under the direction of such

person as the court may, in its judgment or order, designate and

appoint. All books of minutes, entry or account, and the books, bills,

vouchers, checks, contracts or other papers connected with or used or

filed in the office of, or with any officer, board or commission acting

for or on behalf of any county, town, village or municipal corporation

in this state or any body corporate or other unit of local government in

this state which possesses the power to levy taxes or benefit

assessments upon real estate or to require the levy of such taxes or

assessments or for which taxes or benefit assessments upon real estate

may be required pursuant to law to be levied, including the Albany port

district commission, are hereby declared to be public records, and shall

be open during all regular business hours, subject to reasonable

regulations to be adopted by the applicable local legislative body, to

the inspection of any taxpayer or registered voter, who may copy,

photograph or make photocopies thereof on the premises where such

records are regularly kept. This section shall not be so construed as to

take away any right of action from any county, town, village or

municipal corporation, or from any public officer, but any right of

action now existing, or which may hereafter exist in favor of any

county, town, village or municipal corporation, or in favor of any

officer thereof, may be enforced by action or otherwise by the persons

hereinbefore authorized to prosecute and maintain actions; and whenever

by the provisions of this section an action may be prosecuted or

maintained against any officer or other person, his bondsmen, if any,

may be joined in such action or proceeding and their liabilities as such

enforced by the proper judgment or direction of the court; but any

recovery under the provisions of this article shall be for the benefit

of and shall be paid to the officer entitled by law to hold and disburse

the public moneys of such county, town, village or municipal

corporation, and shall, to the amount thereof, be credited the defendant

in determining his liability in the action by the county, town, village

or municipal corporation or public officer. The provisions of this

article shall apply as well to those cases in which the body, board,

officer, agent, commissioner or other person above named has not, as to

those in which it or he has jurisdiction over the subject-matter of its

action.

Liability insurance for officers and employees. Each city,

county, fire district, school district, town, village, town improvement

district governed by a separate board of commissioners and each public

library as defined in section two hundred fifty-three of the education

law, may purchase liability insurance with such limits as it may deem

reasonable for the purpose of protecting its officers and employees

against liability for claims arising from their acts while exercising or

performing or in good faith purporting to exercise or perform their

powers and duties. For the purposes of this section, persons performing

services pursuant to subdivision five of section 170.55 of the criminal

procedure law, section seven hundred fifty-eight-a or section 353.6 of

the family court act or paragraph (h) of subdivision two of section

65.10 of the penal law shall be deemed to be employees.

Alternative service of notice of claim upon the secretary of

state. 1. In lieu of serving a notice of claim upon a public corporation

as provided for in section fifty-e of this article, a notice of claim

setting forth the same information as required by such section may be

served upon the secretary of state in the same manner as if served with

the public corporation. All the requirements relating to the form,

content, time limitations, exceptions, extensions and any other

procedural requirements imposed in such section with respect to a notice

of claim served upon a public corporation shall correspondingly apply to

a notice of claim served upon the secretary of state as permitted by

this section. For purposes of this article, the secretary of state shall

be deemed to be the agent for all public corporations upon whom a notice

of claim may be served prior to commencement of any action or proceeding

subject to the requirements of this article.

2. All public corporations entitled to have served upon them a notice

of claim as a condition precedent to commencement of an action or

proceeding shall, no later than thirty days after the date upon which

this section shall take effect, file a certificate with the secretary of

state designating the secretary as the agent for service of a notice of

claim and shall in such statement provide the secretary with the name,

post office address and electronic mail address, if available, of an

officer, person, or designee, nominee or other agent-in-fact for the

transmittal of notices of claim served upon the secretary as the public

corporation's agent. Any designated post office address or electronic

mail address to which the secretary of state shall transmit a copy of

the notice of claim served upon him or her as agent shall continue to be

the address to which such notices shall be transmitted until the public

corporation sends a notice to the secretary informing him or her of a

new post office address or electronic mail address to which such notices

shall be transmitted. The initial filing with the secretary of state

shall also contain the applicable time limit for filing a notice of

claim upon that public corporation, or if later changed by statute, a

new filing shall be made detailing the new time limit. Any public

corporation that does not have a current and timely statutory

designation filed with the secretary of state shall not be entitled to

the portion of the fee to which it would otherwise be entitled pursuant

to subdivision four of this section. Failure of the public corporation

to so file with the secretary of state will not invalidate any service

of a notice of claim upon the public corporation which has been received

by the secretary of state.

3. The secretary of state is hereby empowered to accept properly

transmitted notices of claims on behalf of a public corporation, with

the same effect as if served directly upon a public corporation. The

secretary of state shall accept such service upon the following terms

and conditions:

(a) the secretary of state shall set and notify the public, on his or

her website, of times, places and manner of service upon him or her of

notices of claims necessary to comply with the provisions of this

section;

(b) upon receipt of a notice of claim, the secretary of state shall

issue a receipt or other document acknowledging his or her receipt of

such notice, and such receipt shall contain the date and time of receipt

of the notice, an identifying number or name particular to the notice

received, and the logo or seal of the department of state embossed upon

it. Such receipt shall be prima facie evidence of service upon the

secretary of state for all purposes;

(c) nothing in this section shall be deemed to alter, waive or

otherwise abrogate any defense available to a public corporation as to

the nature, sufficiency, or appropriateness of the notice of claim

itself, or to any challenges to the timeliness of the service of a

notice of claim. Timely service upon the secretary of state shall be

deemed timely service upon the public corporation for purposes of

instituting an action or proceeding or other requirement imposed by law.

4. The secretary of state may impose a fee upon any person who serves

a notice of claim with the department. Such fee shall not exceed two

hundred fifty dollars for each such notice filed. One-half of the fee

imposed shall be retained by the secretary of state as payment for its

services provided in accordance with this section. The remaining

one-half of such fee shall be forwarded to the public corporation named

in the notice of claim provided, however, if more than one such public

corporation is named, each named public corporation shall be entitled to

an equal percentage of the one-half amount.

5. The secretary of state shall within sixty days after the effective

date of this section post on the departmental website a list of any

public corporation, including any public authority, public benefit

corporation or any other entity entitled to receive a notice of claim as

a condition precedent to commencement of an action or proceeding, and

that has filed, pursuant to this section, a certificate with the

secretary of state designating the secretary as the agent for service of

a notice of claim. The list should identify the entity, the post office

address and electronic mail address, if available, of the public

corporation to which the notice of claim shall be forwarded by the

secretary of state, and any statutory provisions uniquely pertaining to

such public corporation and the commencement of an action or proceeding

against it.

6. The secretary of state is authorized to promulgate any rules or

regulations necessary to implement the provisions of this section.

Payment of judgments against municipal corporation. When a final

judgment for a sum of money shall be recovered against a municipal

corporation, and the execution thereof shall not be stayed pursuant to

law, or the time for such stay shall have expired, the treasurer or

other financial officer of such corporation having sufficient moneys in

his or her hands belonging to the corporation not otherwise specifically

appropriated, shall pay such judgment upon the production of a certified

copy of the docket thereof. Notwithstanding the provisions of any other

law to the contrary, in any case where payment for any reason is to be

made to an incarcerated individual serving a sentence of imprisonment

with the state department of corrections and community supervision or to

a prisoner confined at a local correctional facility, the treasurer or

other financial officer shall give written notice, if required pursuant

to subdivision two of section six hundred thirty-two-a of the executive

law, to the office of victim services that such payment shall be made

thirty days after the date of such notice.

Liability for expenses incurred in enforcing lawful required

payment of moneys to state agencies. Notwithstanding any inconsistent

provision of this chapter or of any law, general, special or local,

whenever any municipal corporation is required by law to provide and pay

any moneys to a corporate or other agency or instrumentality of the

state for a public purpose, any reasonable expenses necessarily incurred

by such an agency or instrumentality in compelling or enforcing by

judicial proceeding payment to it of such moneys shall be a charge

against such municipal corporation and such municipal corporation shall

be liable therefor and shall pay the amount thereof upon certification

and approval by the attorney-general, to such agency or instrumentality,

provided vouchers therefor, properly certified and approved as required

by this section, shall be presented to and filed with the chief fiscal

officer of the municipal corporation within six months after final

determination of such judicial proceedings in the case of any such

expenses hereafter incurred, and in the case of any such expenses

heretofore incurred within six months after this section as hereby added

takes effect. The provisions of this section shall apply to and in the

case of such expenses heretofore incurred subsequent to January first,

nineteen hundred thirty-two, by such a state agency or instrumentality.

Liability for damages by mobs and riots. A city or county shall

be liable to a person whose property is destroyed or injured therein by

a mob or riot, for the damages sustained thereby, if the consent or

negligence of such person did not contribute to such destruction or

injury, and such person shall have used all reasonable diligence to

prevent such damage, shall have notified the mayor of the city, or

sheriff of the county, of a threat or attempt to destroy or injure his

property by a mob or riot, immediately upon acquiring such knowledge,

and shall bring an action therefor within three months after such

damages were sustained. A mayor or sheriff receiving notification of a

threat or attempt to destroy or injure property by a mob or riot shall

take all lawful means to protect such property; and if he shall neglect

or refuse, the person whose property shall be destroyed or injured, may

elect to bring his action for damages against such officer instead of

the city or county.

Injury or death of person aiding a police officer or peace

officer. A person who, after having been lawfully commanded to aid a

police officer or peace officer in effectuating or securing an arrest or

in preventing the commission by another of any offense, is killed or

injured or his property or that of his employer is damaged and such

death, injury or damage arises out of and in the course of aiding such

officer, the person or employer so injured or whose property is so

damaged or the personal representatives of the person so killed shall

have a cause of action to recover the amount of such damage or injury

against the municipal corporation by which such officer is employed at

the time such command is obeyed. In the event of the death of the person

so commanded to aid an officer, the action shall be governed by the

provisions of part four of article five of the estates, powers and

trusts law.

Operation of snowmobiles. 1. With respect to injuries arising

from the operation of snowmobiles, no civil action shall be maintained

against any municipal corporation or an officer thereof in charge of

highway supervision and maintenance, for damages or injuries to person

or property sustained by reason of any highway, bridge or culvert being

defective, out of repair, unsafe, dangerous, or obstructed, unless prior

written notice of such defective, unsafe, dangerous or obstructed

condition on such highway, bridge or culvert was actually given to the

municipal agent, officer, or employee authorized by section three

hundred eleven of the civil practice law and rules to receive service or

to the chief municipal officer in charge of highway supervision and

maintenance, and there was a failure or neglect within a reasonable time

thereafter to repair or remove the defect, danger or obstruction

complained of, or, in the absence of such notice, such defective,

unsafe, dangerous or obstructed condition existed for so long a period

of time that the same could have been discovered and remedied in the

exercise of reasonable care and diligence, conditions resulting from the

removal or non-removal of snow and/or ice shall not constitute a defect

until seventy-two hours after written notice has been served on a

municipal corporation as provided herein. No such action shall be

maintained for damages or injuries to person or property sustained

solely due to conditions caused by snow and/or ice removal, or the

non-removal thereof from highways designated pursuant to section 8-0303

of the conservation law.

2. The municipal officer in charge of highway supervision and

maintenance and any other municipal agent, officer or employee

designated to receive service of process shall transmit in writing to

the clerk of the municipal body involved within twenty-four hours or as

soon as practical after the receipt thereof, all written notices

received by him pursuant to this section.

3. The clerk of each municipal body shall keep an indexed record of

all written notices which he shall receive of the existence of a

defective, unsafe, dangerous or obstructed condition in or upon, or of a

hazardous condition caused by snow and/or ice removal, or the

non-removal thereof from highways designated pursuant to section 8-0303

of the conservation law, which notice shall state the date of receipt

thereof, and the name and address of the person from whom the notice was

received. The record of each notice shall be preserved for a period of

five years after the date received.

Acquisition of lands for erection of monuments. The governing

board of a municipal corporation, or the trustees of a monument

association, may acquire not to exceed three acres of land, for the

erection of an armed forces monument, or a monument or other structure

as a memorial of persons who served as members of the armed forces of

the United States in any of its wars, or of some distinguishing or

important event in the history of the state or nation, and for laying

out such lands as a park or square. The governing board of such

municipality may provide funds for the construction and maintenance of

such memorial in whole or in part and to this end may authorize payments

of public funds to the trustees of such a monument association for such

purpose.

Acquisition and development of forest lands. The governing

board of a county, town or village may severally acquire for such

county, town or village, by purchase, gift, lease or condemnation, and

hold as the property of such municipality, tracts of land having forests

or tree growth thereon, or suitable for the growth of trees, and may

appropriate therefor the necessary moneys of the county, town or village

for which the lands are acquired. Such lands shall be under the

management and control of such board and shall be developed and used for

the planting and rearing of trees thereon and for the cultivation

thereof according to the principles of scientific forestry, for the

benefit and advantage of the county, town or village. The determination

of any such board to acquire lands under the provisions of this section

shall be by resolution; but the question of the final adoption of such

resolution shall be taken up by the board only after public notice

thereof has been published at least once in each week for two successive

weeks, as follows: If it be a resolution of a board of supervisors, the

publication shall be made in the newspapers in which the session laws

and concurrent resolutions are required to be published, provided that

if publication cannot be made in both such newspapers as herein required

because of infrequency of publication of one of them, such notice need

be published in only one such newspaper; if it be a resolution of a town

board or of a board of trustees of a village, the publication shall be

made in a newspaper published in the town or village respectively. The

first publication of such notice shall be at least fourteen days before

the question of final adoption of the resolution may be taken up by the

board. Any period of seven successive days shall constitute a week under

this section. The board shall give a hearing to all persons appearing in

support of or in opposition to such proposed resolution. If it be

determined to purchase such lands the moneys necessary therefor may be

provided as follows: If the acquisition be by a county, the board of

supervisors may cause such moneys to be raised, in whole or in part, by

taxation and levied and collected as other county taxes or such moneys

may be raised, in whole or in part, pursuant to the local finance law;

if the acquisition be by a town, the moneys necessary therefor shall

constitute a town charge and be raised, in whole or in part, by taxation

as other town charges or such moneys may be raised, in whole or in part,

pursuant to the local finance law; if the acquisition be by a village,

the moneys therefor may be raised, in whole or in part, by taxation, as

other village taxes or such moneys may be raised, in whole or in part,

pursuant to the local finance law. All revenues and emoluments from

lands so acquired shall belong to the municipality and be paid to its

chief fiscal officer for the purposes of such municipality and in

reduction of taxation therein. Such forest lands shall be subject to

such rules and regulations as such governing board of the municipality

shall prescribe; but the principal object to be conserved in the

maintenance of such lands shall be the sale of forest products in aid of

the public revenues and the protection of the water supply of the

municipality. Such lands or portions thereof may be sold and conveyed,

or leased, if a resolution therefor be adopted by the affirmative vote

of two-thirds of all the members of such governing board; but no such

resolution directing an absolute conveyance shall be effectual unless

adopted after a public hearing, held upon notice given in the manner

required in the case of a resolution to acquire such lands. A deed of

conveyance or lease of such lands, when authorized as aforesaid, shall

be executed by the county treasurer of the county, supervisor of the

town or president of the village by which the conveyance or lease is

made. Moneys may be appropriated for the care and maintenance of such

lands and the development and use for forests thereon annually, by the

county, town or village, respectively, and the amount thereof raised by

taxation in the same manner that other expenditures of such county, town

or village are provided for by law.

Acquisition of lands and erection of memorial buildings. The

governing board of a town or village may acquire lands and erect a

memorial building, or lands with buildings thereon and remodel such

buildings as a memorial building or remove such buildings and erect a

memorial building, in commemoration of the services of the members of

the armed forces of the United States of the world war or any veteran

association of any of the wars of the United States, at a total cost not

to exceed one per centum of the assessed valuation of any such town or

village. If such expenditure is to be paid from taxes levied for the

fiscal year in which such expenditure is to be made, such expenditure

shall be made only upon the adoption of a proposition therefor by a

majority vote of the electors of any such town or village qualified to

vote upon the submission of propositions. Such proposition may be

submitted by the governing board and shall be submitted in the same

manner as other town or village propositions are submitted. Two or more

adjoining towns may, as herein provided, jointly acquire lands and erect

a memorial building in the manner and for the purposes herein specified.

A town and a village wholly within such town may, as herein provided,

jointly acquire lands and erect a memorial building in the manner and

for the purposes herein specified. Taxes levied for the town's share of

the cost of such acquisition and erection shall be a charge upon the

taxable property of that part of the town outside of such village, and

shall be assessed, levied and collected therefrom.

Expenses of members of the police department and other peace

officers in attending police training schools. The board or body of a

county, city, town or village authorized to appropriate and to raise

money by taxation and to make payments therefrom, is hereby authorized,

in its discretion, to appropriate and to raise money by taxation and to

make payments from such moneys, for the annual expenses of the members

of the police department of such municipal corporation in attending a

police training school, as provided by the regulations of the

department, either within such municipal corporation or elsewhere within

the state; and for the payment of reasonable expenses of such members

and other police officers or peace officers of the municipality while

going to, attending, and returning from any training school conducted by

or under the auspices of the federal bureau of investigation, whether

within or without the state. Notwithstanding any inconsistent provision

of any general, special or local law to the contrary, whenever a member

of the police department of a municipal corporation has attended a

police training school, the expense of which was borne by such municipal

corporation, terminates employment with such municipal corporation and

commences employment with any other municipal corporation or employer

county sheriff, such employer municipal corporation or employer county

sheriff shall reimburse the prior employer municipal corporation for

such expenses, including, salary, tuition, enrollment fees, books, and

the cost of transportation to and from training school, as follows: on a

pro rata basis, to be calculated by subtracting from the number of days

in the three years following the date of the member's graduation from

police training school, the number of days between the date of the

member's graduation from training school and the date of the termination

of employment with the municipal corporation which paid for such

training, and multiplying the difference by the per diem cost of such

expenses, to be calculated by dividing the total cost of such expenses

by the number of days in the three years following the date of the

member's graduation, if such change in employment occurs within three

years of such member's graduation from police training school. Provided,

however, the employer municipal corporation or employer county sheriff

shall not be required to reimburse the prior employer municipal

corporation for that portion of such expenses which is reimbursable by

the member to the prior employer municipal corporation under the terms

of an employment or labor agreement. Provided, further, however, the

employer municipal corporation or employer county sheriff shall not be

required to reimburse the prior employer municipal corporation for such

basic training if such change in employment occurs after the expiration

of the validity of the member's certificate attesting to the

satisfactory completion of an approved municipal police basic training

program.

Acquisition of lands for park and parkway purposes or for

district headquarters for the state department of transportation, and

dedication of the same in the town of Babylon. The governing board of

any municipal corporation in the town of Babylon or the town board of

such town may acquire by purchase, gift, devise or condemnation real

estate or any interest therein necessary for or incidental to the

construction of a state park or state parkway, or for district

headquarters for the state department of transportation, and may donate

or dedicate the same to the state or may release to the state for such

purpose existing rights of way or easements not required for town or

village purposes. If the acquisition be by such town, the moneys

necessary therefor shall constitute a town charge and be raised, in

whole or in part, by taxation as other town charges or such moneys may

be raised, in whole or in part, pursuant to the local finance law; if

the acquisition be by a village, the moneys therefor may be raised, in

whole or in part, by taxation, as other village taxes or such moneys may

be raised, in whole or in part, pursuant to the local finance law.

Acquisition of lands for park and parkway purposes and

dedication of the same by the counties of Broome, Monroe and Erie. The

board of supervisors of the county of Broome, Monroe or Erie may acquire

by purchase, gift, devise or acquisition pursuant to the provisions of

the eminent domain procedure law, real estate or any interest therein

necessary for or incidental to the construction of a state park,

parkway, or boulevard or incidental to the separation of grades at the

intersection of the state parkway or boulevard and a county, town or

village road, highway or street, and may donate or dedicate the same to

the state or may release to the state for such purpose existing rights

of way or easements not required for county purposes. The board of

supervisors of said county of Broome, Monroe or Erie may cause such

moneys as may be required to pay for real estate or interest therein so

acquired to be raised, in whole or in part, by taxation and levied and

collected as other taxes in such county or such moneys may be raised, in

whole or in part, pursuant to the local finance law. In the event

involuntary proceedings are had to acquire lands for the above purposes,

then, and in that case, upon the vesting of the title to the lands

described in the petition as provided in the eminent domain procedure

law said lands may be conveyed by warranty deed for a nominal

consideration by said county to the people of the state of New York, if

and when it becomes necessary to make such conveyance to effect the

purposes of this act.

Acquisition of lands for parkway and airport purposes and

dedication of the same by counties and municipal corporations. 1.

Notwithstanding the provisions of any general or special act or the

provisions of this article, the governing board of any municipal

corporation or the board of supervisors of any county may acquire by

purchase, gift, devise or condemnation real estate or any interest

therein for conservation purposes or for a state park, parkway or

boulevard or incidental to the separation of grades at the intersection

of a state parkway or boulevard and a county, town or village road,

highway or street, and may donate or dedicate the same to the state or

may release and convey to the state for such purpose presently owned

lands, existing rights of way or easements, wheresoever located, not

required for county, city, town or village purposes. Such municipal

corporations or boards of supervisors may also purchase options to carry

out the purposes of this section in aid of the state park and parkway

system. Such municipal corporations or boards of supervisors may acquire

such real estate or interest therein by purchase, gift, devise, or by

condemnation in the manner provided by law. Several of the

municipalities herein mentioned may contribute toward the cost of

acquisition of a state park wholly or partly within their boundaries or

adjacent or near to them on the basis of probable benefit to such

municipalities. In the event that a state park is acquired by agreement

involving contributions by several municipalities, the purchase price

may be met by one or more payments over a period of not to exceed two

years in accordance with the terms of the agreement.

2. The board of supervisors of any county is hereby authorized to

agree with owners respecting the extent and use of easements for slope

protection acquired prior to March first, nineteen hundred thirty-one,

and to grant to owners of lands abutting upon lands heretofore acquired

by such board for such purpose pursuant to authority conferred by this

section rights of way over and access to lands so acquired upon such

terms and for such considerations, as to such board may seem reasonable

and proper.

3. If the acquisition be by a county, the governing board thereof may

cause such moneys to be raised, in whole or in part, by taxation and

levied and collected as other taxes in such county or such moneys may be

raised, in whole or in part, pursuant to the local finance law; if the

acquisition be by a town, the moneys necessary therefor shall constitute

a town charge and be raised, in whole or in part, by taxation as other

town charges or such moneys may be raised, in whole or in part, pursuant

to the local finance law; if the acquisition be by a village, the moneys

therefor may be raised, in whole or in part, by taxation, as other

village taxes or such moneys may be raised, in whole or in part,

pursuant to the local finance law.

* 4. The governing board of any municipal corporation in the county of

Suffolk or the board of supervisors of said county of Suffolk may

acquire by purchase, gift, devise or condemnation, real estate or any

interest therein necessary for or incidental to the establishment,

construction, equipment, maintenance and operation of an airport or

landing field and may enter into a contract or agreement with any other

governmental authority, both federal and state, in relation to the

establishment, construction, equipment, maintenance and operation of an

airport or landing field. Such municipal corporations or the board of

supervisors may acquire such real estate or interest therein in the

manner provided by chapter one hundred ninety of the laws of nineteen

hundred twenty-seven as amended, and all provisions of such act shall,

as far as practicable, apply to the acquisition of real estate or

interest therein in the same manner and with the same effect as though

the lands herein authorized to be acquired were mentioned in such act.

If the acquisition be by the county of Suffolk, the board of

supervisors may cause such moneys to be raised by taxation and levy and

collected as other taxes in such county or may borrow money therefor on

the credit of such county by the issuance and sale of county bonds in

the manner provided by law for the issuance and sale of other county

obligations. If the acquisition be by a town, the moneys necessary

therefor shall constitute a town charge and be raised by taxes as other

town charges or the town board may in its discretion cause town bonds to

be issued and sold in the manner provided by law for the issuance and

sale of town bonds under the town law. If the acquisition be by a

village, the moneys therefor may be raised by taxes as other village

taxes or by the issuance and sale of village bonds in the manner

provided by the laws governing such village relating to village

obligations after the adoption of a resolution therefor by the board of

trustees, without other authorization.

* NB Expired July 1, 1946

Expenses of volunteer firefighters attending training schools

and instruction courses. 1. The chief officer of the fire department of

a municipal corporation or fire district, subject to any rules or

regulations governing such department, may authorize the volunteer

members of the department to attend training schools or courses of

instruction for firefighters.

a. If any such school is located, or any such course is given, outside

the county or outside one of the counties in which the municipal

corporation or fire district is located, such authorization shall be

subject to the prior approval of the governing board of the municipal

corporation or fire district.

b. If any such school is located, or any such course is given, outside

the state, in addition to the approval required in paragraph a of this

subdivision, such authorization shall be subject to a finding from the

governing board that such training course or school of instruction is

necessary and in the public interest and is not available within a

reasonable distance and time period in the state.

c. Notification and proof of attendance of any out-of-state training

school from the chief officer shall be provided to the state office of

fire prevention and control.

2. The governing board by resolution may provide for the payment, in

the same manner as other claims against the municipal corporation or

fire district are audited, allowed and paid, of all actual and necessary

registration fees not in excess of fifty dollars and all actual and

necessary expenses of travel, meals and lodging and all necessary

tuition fees incurred by such volunteer members in attending such a

training school, or course of instruction, in this country or in Canada.

3. If such travel is by car owned by the volunteer firefighter, he or

she may be paid a reasonable mileage allowance for each mile actually

and necessarily traveled by him or her in attending such school or

course of instruction. Such mileage allowance shall not exceed the

standard travel allowance for mileage adopted or prescribed for federal

income tax purposes. Any claim for such expenses or reimbursement shall

have endorsed thereon, or attached thereto, a statement by the chief

officer of the fire department that the attendance had been duly

authorized by him or her. The provisions of this section shall not be

deemed to have amended the provisions of subdivision one of section two

hundred nine of this chapter in relation to participation in fire

training programs which are not conducted as training schools or regular

or special courses of instruction for firefighters.

Sale, lease and transfer to municipal corporations of certain

public lands. (a) Notwithstanding any provision of any general, special

or local law or of any charter, the supervisors of a county, the town

board of a town, the board of trustees of a village, the board of fire

commissioners of a fire district, the board of estimate of a city, or if

there be none the local legislative body of such city, and, in a city

having a population of one million or more, the mayor, subject to

disapproval by the council within thirty days following receipt of

notice of the approval of the mayor, may sell, transfer or lease to or

exchange with any municipal corporation or municipal corporations,

school district, board of cooperative educational services, fire

district, the state of New York, or the government of the United States

and any agency or department thereof, either without consideration or

for such consideration and upon such terms and conditions as shall be

approved by such officer or body, any real property owned by such

county, town, village, fire district or city; and any municipal

corporation or fire district may acquire or lease such real property as

provided in this section. The term of any lease entered into pursuant to

the provisions of this section shall not exceed ten years but nothing

herein contained shall prevent the renewal of any such lease.

(b) The provisions of this section shall not apply to any real

property which is made inalienable under the provisions of any general,

special or local law or of any charter.

Acquisition of lands and erection of memorial buildings by

adjoining villages. The governing boards of two or more villages, of

which at least one boundary of any one adjoins that of any other, may,

upon the adoption of a proposition therefor by a majority vote of the

electors of each such village, as herein provided, jointly acquire lands

and erect a memorial building, or lands with buildings thereon and

remodel such buildings as a memorial building or remove such building

and erect a memorial building, in commemoration of the services of the

members of the armed forces of the United States in any of the wars of

the United States. Unless otherwise provided in the proposition voted

upon or unless otherwise agreed upon by the governing boards of each

participating village, the share of each such village in the cost

thereof shall be in the same proportion as the ratio of its population

to the other participating village or villages. Money to be borrowed for

payment of the cost thereof shall be borrowed pursuant to the provisions

of the local finance law and each village shall be subject to the

limitations therein contained.

Parking garages and parking spaces; public off-street loading

facilities. 1. The governing board or other appropriate authority of a

municipal corporation may acquire by purchase, gift, devise, lease,

condemnation or otherwise, in accordance with the provisions of any

appropriate general, special, or local law applicable to the acquisition

of real property by a municipal corporation, real property or any

interest therein necessary for or incidental to the construction or

operation of parking garages or parking spaces or public off-street

loading facilities for the relief of traffic congestion either as

provided in subdivision two hereof or as provided in subdivision three

hereof.

2. a. A municipal corporation or an urban renewal agency may construct

and operate such garages or spaces or public off-street loading

facilities including the use of such portion of the property for other

commercial uses as may be necessary to provide revenue adequate to

permit the operation of the principal portion of the property for such

garages or spaces or public off-street loading facilities, may charge

such rentals or fees for their use and make such other provisions for

their operation and management as it may deem necessary, and may enter

into contracts for their construction or operation subject to such

conditions as it may impose for the service of the public and the

protection of the public interest. When in furtherance of an urban

renewal program such parking garage or spaces or public off-street

loading facilities are constructed and operated pursuant to a duly

approved urban renewal plan, the same or a portion thereof may be sold,

leased for a term not exceeding ninety-nine years, or otherwise disposed

of, to any person, firm or corporation, without public auction or sealed

bids, subject to such conditions as it may impose for the service of the

public and the protection of the public interest, provided such sale,

lease or disposal is made in accordance with and pursuant to the

provisions of section five hundred seven of this chapter.

b. In addition to such powers as may be granted by any other law or by

any other subdivision of this section, a municipal corporation or an

urban renewal agency may lease, for a term not exceeding ninety-nine

years, such air rights over or the subsurface areas under any property

acquired or to be acquired for garages, spaces or public off-street

loading facilities, together with easements or other rights of user

necessary for the use and development of such air rights or subsurface

areas, as are not needed for public purposes, to any person, firm or

corporation for commercial or private use. Any such lease may contain

provisions requiring the lessee to construct facilities adequate to

support and maintain, without interference, the public parking or

off-street loading facilities being conducted by the municipality or

urban renewal agency and may also contain such other provisions,

conditions and restrictions as the municipality or urban renewal agency

may prescribe. Any buildings, structures, substructures or

superstructures, the title to which remains in the lessee, shall be

deemed to be real property for purposes of taxation as defined in

subdivision twelve of section one hundred two of the real property tax

law.

3. Any municipal corporation, acting through its board of estimate or

other governing body, may, in addition to exercising the powers granted

to it by subdivision two hereof, sell, lease for a term not exceeding

ninety-nine years, or otherwise dispose of any real property or any

interest therein owned by it or acquired by it pursuant to this section,

to any person, firm, or corporation at the highest marketable price or

rental at public auction or by sealed bids pursuant to the provisions of

any general, special or local law applicable to the sale, lease, or

disposition of real property by such municipal corporation, for the

purpose of the construction or establishment on such real property of

public parking garages or public parking spaces or public off-street

loading facilities for the relief of traffic congestion and for the

maintenance and operation thereof. Any deed, lease, or instrument by

which real property or any interest therein is conveyed or disposed of

shall contain provisions requiring the purchaser, grantee, or lessee to

construct or establish on such real property one or more public parking

garages or public parking spaces or public off-street loading facilities

and to maintain and operate the same for such period as may be

prescribed by the board of estimate or other governing body, provisions

fixing or providing for the approval by the board of estimate or other

analogous body of rates to be charged for the use of such facilities by

the operators thereof, and may also contain provisions authorizing the

use of such portion of the property for other commercial purposes as may

be necessary to provide revenue adequate to permit the operation of the

principal portion of the property for public parking garages and public

parking space or public off-street loading facilities. Such deed or

instrument may contain such other provisions, conditions and

restrictions, including specifications relating to construction, and the

rentals at which such property may be leased or subleased by the grantee

or lessee as the board of estimate or other governing body may

prescribe. The prior consent of the city planning commission or other

analogous body of such municipal corporation shall be required for the

acquisition by such municipal corporation of property for the purposes

of this subdivision, which prior consent shall be based upon a finding

by such city planning commission or other analogous body of the

desirability thereof and after a public hearing thereon.

4. As used in this section:

a. The term "public garage" shall mean any building or facility where

motor vehicles are parked, stored, serviced or repaired, and whose space

and facilities are available to the public, with or without fee or

charge, without regard to the residence, business or employment of the

motor vehicle owner or operator seeking such space or facilities.

b. The term "public off-street loading facility" shall mean any

building or area for the loading or unloading of trucks, trailers or

other similar vehicles and the temporary storage of goods incidental

thereto, which space and facilities shall be made available hereunder to

the public with or without fee or charge upon such terms and conditions

as may be prescribed by the board of estimate or other governing body.

5. A town, or a town parking district, and a village wholly within

such town may, as herein provided, jointly acquire lands for and

maintain and operate parking garages and parking spaces or public

off-street loading facilities in the manner and for the purposes herein

specified. Taxes levied for the town's share of the cost of such

acquisition, maintenance and operation shall be a charge upon the

taxable property of that part of the town outside of such village, and

shall be assessed, levied and collected therefrom. Taxes levied for a

parking district's share of the cost of such acquisition, maintenance

and operation shall be a charge upon the taxable property of that part

of the parking district outside of such village and shall be assessed,

levied and collected therefrom.

6. The governing body of any municipal corporation may direct that the

whole of the expense of the acquisition of lands for and the

construction of parking garages and parking spaces or public off-street

loading facilities be assessed upon property deemed benefited, or that

the whole or part thereof be charged to the municipal corporation at

large and the remainder if any, assessed upon the property deemed

benefited. Proceedings for the assessment of the cost of acquisition of

land for and construction of parking garages and parking spaces or

public off-street loading facilities shall be the same as for a local

improvement assessment of other public work.

* § 72-k. Parking facilities and appurtenances within or outside of

the state highway right of way. The governing body of any county, city,

town or village is hereby authorized and empowered to authorize and

direct such of its officers or agencies as it shall designate to enter

into agreements with the state commissioner of transportation for the

assumption of all the rights and obligations for the operation,

maintenance and control of parking facilities and appurtenances,

including connections to such facilities, as provided by said

commissioner of transportation pursuant to subdivisions thirty-nine and

forty of section ten of the highway law, and to appropriate and spend

moneys of the county, city, town or village for that purpose.

* NB There are 2 § 72-k's

Navigation and flood control improvements in cooperation with

the federal government. Any municipal corporation acting through its

governing board or other appropriate authority may; (1) cooperate with

the federal government as authorized in the rivers and harbors

improvements act of March second, nineteen hundred forty-five, and any

federal laws amendatory and supplemental thereto in connection with

works of improvement for navigation and flood control or the

improvement, development, dredging, utilization or control of the

watersheds and waterways within their boundaries; (2) contribute up to

one-half of the cost of such improvements as provided under such federal

laws and provide the funds required therefor by the use of any surplus

moneys or budget funds available for such improvements or may provide

same pursuant to the provisions of the local finance law; (3) furnish

free of cost to the United States all lands, easements, rights of way

and spoil disposal areas for new work, dredged materials and subsequent

maintenance as required under such federal laws, and acquire the

necessary real property for such purpose in accordance with the

provisions of any appropriate general, special or local law applicable

to the acquisition of real property by such municipal corporation; (4)

contract with the federal government including (a) agreements to hold

and save the United States free from claims for damages resulting from

the execution and maintenance of such improvements, and (b) such other

provisions, covenants and conditions as the federal agency may require

for effectuating the federal purposes; (5) (a) apply for and accept

grants or other financial assistance, under existing laws, from the

state or county and (b) make agreements to hold and save such state and

county free from claims for damages resulting from the execution and

maintenance of such improvements and (c) such other provisions,

covenants and conditions as the state or county may require for

effectuating such purposes.

* § 72-m. Appropriations for Bicentennial celebration. A municipal

corporation may after a public hearing appropriate annually a sum that

it deems appropriate for the purpose of defraying the expenses of the

preparation and celebration of the bicentennial celebration of the

United States of America. The provisions of this section shall remain in

full force and effect until December thirty-first, nineteen hundred

seventy-seven.

* NB There are 2 § 72-m's

* NB Expired December 31, 1977

Air space and air and subsurface areas. 1. Any municipal

corporation acting through its governing board may, in addition to those

powers granted it by any other provision of law and notwithstanding any

other provision of law to the contrary, lease to any person, firm or

corporation for business, commercial, private or other lawful use, the

air rights over or the subsurface areas under any of its property

together with lands adjacent thereto which have been or are to be

acquired by it pursuant to section thirty-four-b of the public lands

law, provided that said air space rights and air rights and subsurface

rights and adjacent lands are determined by the governing board not

thereafter to be needed for municipal purposes.

2. Such lease shall be subject to the provisions of section

thirty-four-b of the public lands law and shall in addition contain

provisions requiring the lessee to take steps which are adequate and

necessary to support and maintain such facilities as are being developed

by the municipality, the state, or any of its duly constituted agencies.

3. Title to any buildings, structures, substructures or

superstructures erected or constructed by the lessee shall vest in the

municipality at the termination or expiration of the lease.

4. Any such lease may be entered into without recourse to sealed bids

or public auction provided that (a) the amount of rental and all

essential terms and conditions of the lease shall have been included in

a notice published by the governing board in at least one newspaper of

general circulation in the municipality not less than twenty days prior

to its proposed execution and that (b) such lease shall be approved by

the governing board after a public hearing held not less than ten days

after the publication of said notice.

5. Interests granted pursuant to this section and any improvements

erected or constructed thereunder shall be assessed and taxed in

accordance with the provisions of section five hundred sixty-four of the

real property tax law.

Expenses of volunteer fire officers and firefighters appearing

before a court or other tribunal. 1. The chief officer of the fire

department of a municipal corporation or fire district, subject to any

rules or regulations governing such department, may authorize

reimbursement for the volunteer officers or members of the department

who appear before a court or other tribunal:

a. when the judicial or other proceeding relates to activities arising

from the duties of the volunteer fire officer or firefighter; and

b. the volunteer fire officer or firefighter is not involved in any

criminal activity or is the subject of or is personally charged with a

violation of any section of law, rule or regulation being investigated

by the court or other tribunal; and

c. the volunteer fire officer or firefighter has not been given

immunity by a court or other tribunal in relation to such proceedings;

and

d. the volunteer fire officer or firefighter has no financial interest

in the outcome of such proceedings; and

e. the volunteer fire officer or firefighter has been issued a

subpoena to appear and give testimony in such action or proceeding; and

f. the chief officer has been notified of the volunteer fire officer's

or firefighter's receipt of a subpoena.

Such authorization from the chief officer may not be unreasonably

withheld. Failure to obtain such authorization shall not be deemed to

excuse a volunteer fire officer or firefighter from complying with a

lawfully issued subpoena, but shall not entitle him to the payment of

expenses incurred, as provided in subdivision two of this section.

2. The governing board of the municipal corporation or fire district

by resolution may provide for the payment, in the same manner as other

claims against the municipal corporation or fire district are audited,

allowed and paid, of all actual and necessary expenses of travel, meals

and lodging necessarily and reasonably incurred by such volunteer fire

officers and firefighters in apppearing before a court or other

tribunal. Such resolution may also provide for the reimbursement of all

actual lost wages necessarily and reasonably incurred by such volunteer

fire officers and firefighters, up to a maximum of one hundred dollars

per day. If such travel is by a car owned by the volunteer fire officer

or firefighter, he may be paid a reasonable mileage allowance for each

mile actually and necessarily traveled by him in appearing before such

court or other tribunal. If such claim includes any amount for actual

lost wages, a statement by the volunteer fire officer's or firefighter's

employer shall be attached. Any claim for such expenses or reimbursement

shall have endorsed thereon, or attached thereto, a statement by the

chief officer of the fire department or fire district that he was

notified of the volunteer fire officer's or firefighter's receipt of a

subpoena requiring him to appear and give testimony before a court or

other tribunal, such chief officer's authorization therefor and copy of

such subpoena.

* § 72-p. Lease of real property by a municipality. Notwithstanding

any provision of any general, special or local law or of any charter,

whenever a municipal corporation enters into a lease of real property

the lease agreement shall provide that the tenant may not assign the

lease to a third party unless such assignment is approved by the

municipal corporation. A municipal corporation may not arbitrarily and

capriciously withhold its approval of such assignment. The provisions of

this section shall not apply to the leases of real property to municipal

or public corporations.

* NB There are two § 72-p's

Adopt-a-beach stewardship program. 1. The governing body of

any municipality may enter into stewardship agreements with any person

or persons for the purposes of preserving, maintaining, or enhancing its

publicly-owned beach, shoreline area or portion thereof in accordance

with the policies of this section.

2. The stewardship agreement shall provide that the beach or shoreline

area be preserved and maintained in its natural state or managed to

enhance or restore the natural values they provide. Activities may

include: remediating vandalism and storm damage, picking up litter and

trash, establishing or maintaining access or nature trails, providing

interpretive services for school groups and other citizens, and

otherwise providing positive benefits to the beach or shoreline area.

3. Stewardship agreement with any person or persons may provide for

assistance of personnel, facilities and supplies of the municipality for

the purposes of supporting appropriate activities under such stewardship

agreement.

4. The municipality shall establish procedures by which a person or

persons may apply for a stewardship agreement, and shall be responsible

for working with such persons to identify specific sections of a

publicly-owned beach or shoreline area and specific activities deemed

appropriate for such stewardship agreement. The municipality may

consider factors such as safety, environmental sensitivity, need, cost

and other factors deemed relevant in determining which beach or

shoreline area or activities may be eligible or appropriate for a

stewardship agreement.

5. The municipality shall provide recognition of the stewardship

activities by appropriate signage on or near the adopted beach or

shoreline area, and may provide recognition by such other measures as it

may determine to be appropriate, including but not limited to press

releases, certificates, and newsletters.

6. The stewardship agreement may be modified in scope or altered in

any other manner at the sole discretion of the municipality, not

inconsistent with the provisions of this section. The person or persons

shall have the option of renewing the agreement subject to the approval

of the municipality and the continuation by the municipality of the

adopt-a-beach stewardship program. The municipality may immediately

remove the signs and it may terminate the agreement upon thirty days

notice, if in its sole judgment it finds and determines that the person

or persons are not meeting the terms and conditions of the agreement.

7. Notwithstanding any inconsistent provision of law, the municipality

which has entered into a stewardship agreement and its employees shall

not be liable for damages suffered by any person resulting from the

actions or activities of such volunteers.

Cities and villages may hold property in trust for certain

purposes. Real and personal estate may be granted and conveyed to the

corporation of any city or village of this state, to be held in trust

for any purpose of education, or the diffusion of knowledge, or for the

relief of distress; or for parks, gardens, or other ornamental grounds,

or grounds for the purposes of military parades and exercise, or health

and recreation, within or near such incorporated city or village, upon

such conditions as may be prescribed by the grantor or donor, and agreed

to by such corporation; and all real estate so granted or conveyed to

such corporation, may be held by the same, subject to such conditions as

may be prescribed and agreed to as aforesaid.

Condemnation of real property. A municipal corporation

authorized by law to take and hold real property for the uses and

purposes of the corporation, may, if it is unable to agree with the

owners for the purchase thereof, acquire title to such property by

condemnation.

Payment of moving and relocation expenses of residential and

commercial owners and tenants of appropriated property. 1. The chief

fiscal officer of every municipal corporation shall establish and may

amend rules and regulations authorizing the payment of reasonable and

necessary moving expenses of occupants of property acquired by

condemnation or agreement, such payments not to exceed one thousand

dollars in the case of an owner or tenant of residential property and

twenty-five thousand dollars in the case of an owner or tenant of

commercial property. Such rules and regulations may further define the

terms used in this section. Application for such payment shall be made

to the chief fiscal officer of such municipal corporation upon forms

prescribed by him and shall be accompanied by such information and

evidence as he may require. Upon approval of such application, the

chief fiscal officer of such municipal corporation shall deliver a copy

thereof to the treasurer of the municipal corporation or other officer

of such municipal corporation exercising corresponding functions

together with a certificate stating the amount due thereunder, and the

amount so fixed shall be paid out of the municipal corporation treasury

after audit by the comptroller of the municipal corporation or other

officer of the municipal corporation exercising corresponding functions

from moneys appropriated for the acquisition of such property. As used

in this section "commercial property" shall include property owned by an

individual, family, business concern (including the operation of a farm)

and a nonprofit organization.

The provisions of this subdivision shall not apply to a city having a

population of one million or more.

2. In addition to the authorization of subdivision one of this

section, the governing body of any municipal corporation may adopt and

amend rules and regulations authorizing the payment of relocation

assistance allowances, related and other necessary expenses as described

in the uniform relocation assistance act to owners or occupants of

property or any interest therein acquired or to be acquired by such

municipal corporation by condemnation, agreement or otherwise and for

which federal funds shall be used toward the cost of such acquisition.

Such rules and regulations may further define the terms used in this

subdivision. In acquiring real property for which federal funds shall be

used, the municipal corporation is hereby authorized to do such other

and further acts not hereby specifically provided as may be necessary to

comply with such uniform relocation assistance act. Application for such

payment shall be made to the officer of such municipal corporation

designated by the governing body, upon forms prescribed by him and shall

be accompanied by such information and assistance as may be required to

substantiate entitlement thereto. Payment shall be made as provided in

such rules and regulations from moneys appropriated for the acquisition

of such real property or interest therein.

3. As used in this section, the following terms shall have the

following meanings:

(a) "Municipal corporation". A county, city, town, village, school

district, fire district, district corporation and public authority.

(b) "Uniform relocation assistance act." The uniform relocation

assistance and real property acquisition policies act of nineteen

hundred seventy, being public law 91-646, as enacted by the ninety-first

Congress of the United States and any federal laws amendatory or

supplemental thereto.

(c) "Governing body." In a city, the legislative body as defined in

subdivision seven of section two of the municipal home rule law, unless

another provision of law or the city charter vests another officer or

agency thereof with the power to fix and promulgate, with the approval

of the mayor, schedules of relocation payments in which case, governing

body shall mean such other officer or agency.

Taking of billboards. 1. If any local law, ordinance or

resolution adopted by a municipal corporation in the exercise of its

police power shall require the removal of any legally erected and

maintained billboard or like outdoor advertising device, which is leased

or rented for profit in areas zoned industrial or manufacturing, just

compensation for said taking shall be determined in accordance with the

provisions of article five of the eminent domain procedure law;

provided, however, section five hundred two of such law shall not be

applicable in any such proceeding.

2. Unless compensation therefor is provided pursuant to section

eighty-eight of the highway law, if any local law, ordinance or

resolution adopted by a municipal corporation in the exercise of its

police power shall require the removal of any legally erected and

maintained billboard or like outdoor advertising device, which is leased

or rented for profit, and which is located in an area or zone, other

than an industrial or manufacturing zone, the display shall be allowed

to remain in existence for the period of time set forth below after

giving notice of the removal requirement:

fair market value on date of minimum years

notice of removal requirement allowed

under $1,999 3

$2,000 to $3,999 4

$4,000 to $5,999 6

$6,000 to $7,999 7

$8,000 to $9,999 9

$10,000 and over 10

If the removal is required sooner than the amortization periods

specified herein, such removal by any local law, ordinance or resolution

adopted by the municipal corporation shall be with just compensation

being paid for such taking and removal determined in accordance with the

provisions of article five of the eminent domain procedure law or in

accordance with any table of values established by the state department

of transportation; provided however section five hundred two of the

eminent domain procedure law shall not be applicable to any such

proceeding.

Notwithstanding any other law, rule or regulation, all amortization

periods under such laws, ordinances or resolutions shall commence not

earlier than January first, nineteen hundred ninety.

3. The provisions of this section shall not apply to any city having a

population of one million or more.

Limitation on acquisition of water rights in Dutchess county.

Notwithstanding the provisions of any general or special law, a

municipal or other corporation shall not have power to acquire by

condemnation for the purpose of increasing or improving its water

supply, any stream or water, situated outside the boundaries of such

municipal corporation, that flows through the town of Fishkill,

Wappingers or Poughkeepsie into the Hudson river, which stream or water

affords the chief source of power to, or is necessary in the process of

manufacturing, washing or dyeing in, a mill situated in a city or

village within the county of Dutchess, the inhabitants whereof are

chiefly dependent on such mill for employment and support.

Limitation on acquisition of water rights in Westchester and

Putnam counties. Notwithstanding the provisions of any general or

special law, a municipal or other corporation not situated within the

county of Westchester or the county of Putnam shall not have power to

acquire by condemnation, for the purpose of increasing or improving the

water supply of any such corporation, or for supplying the inhabitants

thereof with water, any lands, easements, streams of water, or water

rights within the county of Westchester or the towns of Carmel and

Putnam Valley in the county of Putnam, except that this section shall

not apply to the contemplated reservoir known as the Cross river

reservoir, nor to the contemplated reservoir at or near Croton falls,

nor to the contemplated acquisition of land in the vicinity of Rye lake;

nor shall this section operate to prevent the city of New York from

acquiring real estate in said counties necessary for the purpose of

constructing, maintaining and operating aqueducts, dams, reservoirs,

culverts, sluices, canals, bridges, tunnels, pumping works, blow-offs,

shafts, filters and appurtenances for the purpose of conveying to the

city of New York and to the said counties, water from sources outside of

the said counties, or for the purpose of connecting supplies of water

already established within said counties, nor shall this section operate

to prevent the city of New York from acquiring such real estate within

the Croton watershed in the county of Westchester, contiguous to Little

Mohansic Lake and Mohansic Lake, as may be necessary for the sanitary

protection of the water supply of the city of New York, and the city of

New York is hereby authorized to acquire by purchase or by condemnation

in the manner prescribed by the provisions of title two, chapter eleven

of the Greater New York charter as amended, such real estate for such

purposes, except the lands, buildings and premises known as the Mohansic

Lake reservation in the town of Yorktown, the county of Westchester,

transferred and conveyed by the people of the state of New York to the

county of Westchester by chapter two hundred and seventy-six of the laws

of nineteen hundred and twenty-two.

Leases of public buildings to posts of veteran organizations,

organizations of volunteer firefighters, and child care agencies. 1. A

municipal corporation may lease, for not exceeding five years, to a post

or posts of the Grand Army of the Republic, Veterans of Foreign Wars of

the United States, American Legion, Catholic War Veterans, Inc.,

Disabled American Veterans, the Army and Navy Union, U.S.A., Marine

Corps League, AMVETS, American Veterans of World War II, Jewish War

Veterans of the United States, Inc., Italian American War Veterans of

the United States, Incorporated, Masonic War Veterans of the State of

New York, Inc., Veterans of World War I of the United States of America

Department of New York, Inc., Polish-American Veterans of World War II,

Amsterdam, N.Y., Inc., Polish-American Veterans of World War II,

Schenectady, N.Y., Inc., Polish Legion of American Veterans, Inc.,

Vietnam Veterans of America or other veteran organization of members of

the uniformed services of the United States who (a) were honorably

discharged from such service or (b) have a qualifying condition, as

defined in section one of the veterans' services law, and received a

discharge other than bad conduct or dishonorable from such service, or

(c) are discharged LGBT veterans, as defined in section one of the

veterans' services law, and received a discharge other than bad conduct

or dishonorable from such service, or to an incorporated organization or

an association of either active or exempt volunteer firefighters, a

public building or part thereof, belonging to such municipal

corporation, except schoolhouses in actual use as such, without expense,

or at a nominal rent, fixed by the board or council having charge of

such buildings and provide furniture and furnishings, and heat, light

and janitor service therefor, in like manner.

2. A municipal corporation may lease to a non-profit corporation

organized under the laws of the state of New York which is authorized to

care for children and which is subject to the visitation, inspection and

supervision of the state board of social services a public building or

part thereof belonging to such municipal corporation, without expense or

at a nominal rent, fixed by the board or council having charge of such

buildings, and provide furniture and furnishings and heat, light and

janitor service therefor, in like manner.

Construction and maintenance of memorial building or monument

by county or city. A county, or a city by resolution adopted by the

governing board of such municipality by a two-thirds vote of its

members, may construct and maintain a memorial building, park or a

monument at a place within the municipality or upon any public park

thereof, in commemoration of soldiers and sailors of the United States

in any war or wars in which the United States shall have engaged, at an

expense to be borne by the city or county at large. Such resolution

shall create a committee, to be at all times composed of members of such

governing boards, to have charge of such construction and of such

maintenance, direct expenditures therefor and let a contract or

contracts for such construction. Upon the adoption of such resolution,

the governing board or other proper authorities of such municipality

shall appropriate, raise by tax in the city or county, as the case may

be, and make available from time to time to the order of such committee,

the amount chargeable to the city or county for such construction and

maintenance. In a city having a board of estimate and apportionment, the

concurrence of such board, with any action by the governing board, shall

be necessary to any action by the city under this section. A county and

a city wholly contained therein may unite in the construction and

maintenance of such a memorial by such resolution being so adopted by

the governing board of each municipality, at an expense to be borne by

the city and county at large, or by the city and taxable property of the

county outside of the city, in such manner and in such proportions as

the resolution shall prescribe. Such resolution shall create a committee

to be at all times composed of members of each of such governing boards,

to have charge of construction and of such maintenance, direct

expenditures therefor and let a contract or contracts for such

construction. Upon adoption of such resolutions the governing board or

other proper authorities of such municipality shall appropriate, raise

by tax in the city or county, as the case may be, and make available

from time to time to the order of such committee, the amount chargeable

to the city or county for such construction and maintenance.

Expenses of certain public officers and employees attending

conventions, conferences and schools. 1. Definitions. As used in this

section, the following terms shall mean:

(a) Municipality. A city, county, town, village, school district,

cooperative educational services district, improvement district, soil

conservation district, public library, community college, fire district.

(b) Governing Board. A common council, board of aldermen, city

council, or board of estimate of a city, the county legislature or board

of supervisors of a county, the town board of a town, the board of

trustees of a village, the board of education of a school district, the

board of cooperative educational services, the board of commissioners of

an improvement district, the board of directors of a soil conservation

district, the trustees of a public library, the trustees of a community

college, and the board of fire commissioners of a fire district.

(c) Conference. A convention, conference, or school conducted for the

betterment of any municipality or a convention or conference of

firefighters or firemanic officers if believed to be of benefit to the

municipality.

2. The governing board of a municipality may, by a majority vote,

authorize any of its members or any officer or employee or the chief or

assistant chief of its fire department or other person who has been

elected pursuant to law to a public office of a municipality for which

the term of office has not commenced to attend a conference. Such

conference travel shall be for official business and shall be made

utilizing a cost-effective and reasonable method of travel.

Authorization must be by resolution adopted prior to such attendance,

duly entered in the record of the proceedings of the municipality.

However, the governing board may delegate the power to authorize

attendance at such conference to any executive officer or any

administrative board.

3. All actual and necessary registration fees, all actual and

necessary expenses of travel, meals and lodging and all necessary

tuition fees incurred in connection with attendance at a conference

shall be a charge against the municipality and the amount thereof shall

be audited, allowed and paid in the same manner as are other claims

against such municipality.

4. Where authorization to attend a conference shall have been granted

by any executive officer or administrative board no claim or expenses

shall be audited, allowed or paid unless there shall be attached thereto

a travel order or similar document signed by such executive officer or

by the chairman of the administrative board, as the case may be,

authorizing the claimant to attend such conference. If travel is by car,

owned by any person so authorized, he shall receive an amount not to

exceed the amount which the governing board allows as mileage.

5. No person shall be entitled to any compensation for the time spent

in attending such a conference except that no deductions shall be made

from the salary of a person so attending because of such attendance.

6. Advances of money for estimated expenditures, for registration

fees, travel, meals, lodging and tuition fees may be made to a person

duly authorized to attend a conference provided itemized vouchers

showing actual expenditures are submitted after such attendance and

moneys advanced in excess of such expenditures are refunded to the

municipality or expenditures in excess of such estimate are audited and

paid by the municipality. Where an officer or employee fails to return

such excess advance, at the time of submitting his itemzied vouchers or

upon demand after audit of such voucher, the municipality shall deduct

the amount of such unreturned excess advance from the salary or other

money owed the officer or employee by the municipality.

Per diem meal allowances for travel on official business.

Whenever a municipality is authorized or required to reimburse its

officers, employees, or the volunteer members or officers of the fire

department of the municipality, for their actual and necessary expenses

for meals in conjunction with travel on official business, the governing

board of such municipality may determine by resolution to allow and pay

a reasonable per diem allowance for meals in lieu of such actual and

necessary expenses. In determining the amount of such allowance, the

governing board shall consider the prevailing costs for meals in the

area in which the travel will occur, but in no event shall such

allowance exceed the standard meal allowance for business-related travel

adopted or prescribed for federal income tax purposes. For purposes of

this section, the terms "municipality" and "governing board" shall have

the same meaning as in section seventy-seven-b of this article.

Traveling expenses for applicants for public employment. The

governing board of each county, city, town, village, school district,

fire district or other district corporation may, by local law, ordinance

or resolution, authorize the payment of the actual and necessary travel

expenses, including meals and lodging, of an applicant for any office or

position in the service of such county, city, town, village, school

district, fire district or district corporation. Such payment shall be

deemed a purpose of the county, city, town, village, school district,

fire district, or other district corporation and shall be a charge

against the taxable property within each such county, city, town,

village, school district, fire district or district corporation.

However, in the event taxes are levied upon taxable property of an area

of less than an entire city, county, town or village for the

compensation or salary of such office or position, the expense incurred

under this section shall be a charge against such area and shall be

levied and collected from the taxable property thereof.

Baseball field fence leases in Yates county. Notwithstanding

any provision of any general, special or local law or of any charter to

the contrary, the village of Penn Yan, Yates county, may lease municipal

baseball field fences, annually, at a nominal rent, to a not-for-profit

corporation or organization, organized under the laws of the state of

New York for the purpose of permitting the sale of advertising, with the

revenues to be used solely to purchase or repair baseball equipment for

said organization.

Sports field fence leases in the town of Sweden, Monroe

county. Notwithstanding any provision of any general, special or local

law or of any charter to the contrary, the town of Sweden, Monroe

county, may lease any and all sports field fences at the Sweden Town

Park annually, at a nominal rent, to a not-for-profit corporation or

organization, organized under the laws of the state of New York for the

purpose of permitting the sale of advertising, with the revenues to be

used solely for the care of said Sweden Town Park on Redman Road in the

town of Sweden.

Sports field fence leases in the city of Rye, Westchester

county. Notwithstanding any provision of any general, special or local

law or of any charter to the contrary, the city of Rye, Westchester

county, may lease any and all sports field fences at Disbrow Park,

Gagliardo or Recreation Park annually, at a nominal rent, to a

not-for-profit corporation or organization, organized under the laws of

the state of New York for the purpose of permitting the sale of

advertising, with the revenues to be used solely for the care of said

parks in the city of Rye, Westchester county.

Sports field fence leases in the town of New Castle,

Westchester county. Notwithstanding any provision of any general,

special or local law or of any charter to the contrary, the town of New

Castle, in the county of Westchester, may lease any and all sports field

fences at Gedney park, Millwood park and the Recreation Field annually,

at a nominal rent, to a not-for-profit corporation or organization,

organized under the laws of the state of New York for the purpose of

permitting the sale of advertising, with the revenues to be used solely

for the care of said parks and field in the town of New Castle,

Westchester county.

Sports field fence leases in the town of Yorktown, Westchester

county. Notwithstanding any provision of any general, special or local

law or of any charter to the contrary, the town of Yorktown, in the

county of Westchester, may lease any and all sports field fences at

Legacy Field and Granite Knolls Sports Complex annually, at a nominal

rent, to a not-for-profit corporation or organization, organized under

the laws of the state of New York for the purpose of permitting the sale

of advertising, with the revenues to be used solely for the care of said

parks and field in the town of Yorktown, Westchester county.

* § 77-j. Sports field fence leases in the town of Putnam Valley,

Putnam county. Notwithstanding any provision of any general, special or

local law or of any charter to the contrary, the town of Putnam Valley,

Putnam county, may lease any and all sports field fences at Leonard

Wagner Memorial Park, annually, at a nominal rent, to a not-for-profit

corporation or organization, organized under the laws of the state of

New York for the purpose of permitting the sale of advertising, with the

revenues to be used solely for the care of such Leonard Wagner Memorial

Park in the town of Putnam Valley, Putnam county.

* NB There are 2 § 77-j's

* § 77-k. Sports field fence leases in the village of

Croton-on-Hudson, Westchester county. Notwithstanding any provision of

any general, special or local law or of any charter to the contrary, the

village of Croton-on-Hudson, Westchester county, may lease any and all

sports field fences at Dobbs Park, Duck Pond Park, Firefighters Memorial

Field and David J. Manes Memorial Field, annually, at a nominal rent, to

a not-for-profit corporation or organization, organized under the laws

of the state of New York for the purpose of permitting the sale of

advertising, with the revenues to be used solely for the care of such

Dobbs Park, Duck Pond Park, Firefighters Memorial Field and David J.

Manes Memorial Field that are all in the village of Croton-on-Hudson,

Westchester county.

* NB There are 2 § 77-k's

Insurance of property. Public officers having by law the care

and custody of the public buildings and other property of a municipal

corporation, may insure the same at the expense and for the benefit of

such corporation.

Demolition and removal of unsafe structures. The governing

body of any city, town, or village may commence a special proceeding in

a court of competent jursidiction to collect the costs of demolition,

including reasonable and necessary legal expenses incidental to

obtaining an order to demolish, from the owner of any building or

structure that may now be or shall hereafter become dangerous or unsafe

to the public. The provisions of article four of the civil practice law

and rules shall govern any special proceeding commenced under this

section.

Discrimination against non-residents. Any restriction or

regulation imposed by the governing board of a municipal corporation

upon the inhabitants of any other municipal corporation within this

state, carrying on or desiring to carry on any lawful business or

calling within the limits thereof, which shall not be necessary for the

proper regulation of such trade, business or calling, and shall not

apply to citizens of all parts of the state alike, except ordinances or

regulations in reference to traveling circuses, shows and exhibitions,

shall be void.

Purchasing of products for municipal use. 1. As used in this

section:

a. "Practicable" means capable of being used without violating the

following criteria: performance, availability at a reasonable price,

availability within a reasonable period of time and maintenance of a

satisfactory level of competition.

b. "Secondary material" means any material recovered from or otherwise

destined for the waste stream, including but not limited to,

post-consumer material, industrial scrap material and overstock or

obsolete inventories from distributors, wholesalers and other companies,

but such term does not include those materials and by-products generated

from, and commonly reused within, an original manufacturing process.

2. The municipality shall review the procurement specifications it

currently uses to determine whether such require that products be

manufactured from virgin materials or exclude products manufactured from

secondary materials and shall make such changes, on or before January

first, nineteen hundred ninety-one, as may be necessary to ensure that:

a. Where such specifications exclude the use of products manufactured

from secondary materials or require that products be manufactured from

virgin materials only, such exclusions or requirements be eliminated;

provided, however, that specifications need not be revised if the

municipality determines that for a particular end use a product

containing secondary materials would not meet necessary performance

standards.

b. Performance standards, specifications and a product's intended end

use are related, and clearly identified when feasible.

c. Specifications are not overly stringent for a particular end use or

performance standard.

d. Specifications incorporate or require the use of secondary

materials to the maximum extent practicable without jeopardizing the

performance or intended end use of the product; provided, however, where

the municipality determines that for a particular end use a product

containing secondary materials would not meet necessary performance

standards, such specifications need not incorporate or require the use

of secondary materials.

Peddling and hawking farm produce. The governing board of a

municipal corporation shall not by ordinance or otherwise regulate or

prohibit the pursuit or exercise of hawking and peddling farm produce

except hay and straw within the limits of any such municipal

corporation, if such farm produce is hawked or peddled by the producer

thereof, or his servants or employees; nor shall the governing board of

any such municipal corporation pass an ordinance requiring such producer

of farm produce to secure a license for peddling and hawking such farm

produce within the limits of such municipal corporation. Nothing

contained herein shall affect any pending action or proceeding to

recover penalties imposed for violations of existing ordinances and

regulations. Nothing in this section shall be construed to permit wagons

from which farm produce is sold to stand in front of stores or private

residences for a longer time than may be necessary for the sale and

delivery of produce purchased by the occupants of such stores or

residences; nor to permit the congregating of such wagons upon any

street or thoroughfare not set apart by the municipality as a public

market for the sale of farm produce. This section shall not apply to

villages, or to cities of the first class.

Levy to pay a final judgment; to be in addition to amount

authorized by law; money to be paid to judgment creditor. If a final

judgment for a sum of money, or directing the payment of money shall

have been, or shall hereafter be recovered against any county, town,

city or incorporated village within this state, and the same remains, or

shall hereafter remain unpaid, and the execution thereof is not, or

shall not be stayed as required by law, or if so stayed, the stay has

expired, or shall hereafter expire, it shall be the duty of the board of

supervisors, if the judgment is, or shall be, recovered against a county

or town, or of the common council of the city, or the board of trustees

of the village, if the judgment is, or shall be, recovered against a

city or an incorporated village, and the said board of supervisors,

common council or board of trustees is hereby empowered to assess, levy,

and cause to be collected at the same time and in like manner as other

moneys for the necessary expenses of the county, town, city or village,

as the case may be, are then next thereafter to be assessed, levied and

collected, and in addition to the moneys now authorized by law to be

assessed, levied and collected for that purpose, a sum of money

sufficient to pay the said judgment with the interest thereupon, and the

fees and expenses chargeable by law upon the execution, if any, issued

to collect the same. The moneys so assessed and levied as soon as

collected and paid to the proper receiving and disbursing officer, or so

much thereof as may be necessary, shall, from time to time, be paid by

him to the judgment creditor, administrator or assignee, or other person

entitled to receive the same by reason of the said judgment, without any

deduction for his fees or commissions.

Limitation as to amount of money to be raised; special provision

in New York city. No restriction or limitation imposed by law as to the

sum to be raised in any year in any city or village shall apply to the

moneys to be raised for the purposes specified in the last preceding

section; but the said moneys shall be raised in addition to any sum so

restricted or limited.

In the city of New York the powers and duties devolved upon the common

council of a city by section eighty-two of this chapter shall be

exercised by the board of estimate and apportionment.

Refunding illegal assessments. Whenever an assessment for a

local improvement has been annulled by the judgment or order of any

court any sum of money which has been heretofore or shall be hereafter

paid thereon, may be refunded with interest from the time of such

payment. If not so refunded within one year, from the time of such

judgment or order annulling such assessment, an action may be maintained

to recover such sum with interest thereon.

Service charge on returned checks. 1. The governing body of a

municipal corporation may by resolution provide for the imposition of a

charge to be added to any account owing to the municipal corporation

where a tendered payment of such account was dishonored by a bank or

depository institution.

2. Whenever the account owing to the municipal corporation is for a

tax, special ad valorem levy or special assessment, the charge

authorized by the preceding subdivision shall be included on whatever

list of delinquent accounts is prepared for the enforcement of the lien.

3. Said charge shall be determined and set by resolution of the

governing body, from time to time, as appropriate, but shall not exceed

the maximum charge for dishonored checks authorized under section 5-328

of the general obligations law.

4. Any such service charge shall be collected in the same manner

prescribed by law for the collection of the account for which the check

was tendered. In addition, such municipal corporation may require future

payments to be tendered in cash or by certified or cashier's check.

5. For purposes of this section, the term "municipal corporation"

shall mean a municipal corporation as defined in section two of this

chapter and a school district.

Taxation of transient merchants. The legislative body of a

city, the town board of a town or the board of trustees of a village has

power to provide that a tax shall be levied upon all persons or

corporations conducting transient retail business therein, and may

provide for the collection of such tax by requiring a permit and bond,

cash deposit or other security before the commencement of business by

such persons or corporations. Such tax shall be based upon the gross

amount of sales and shall be at the same rate as other property is taxed

for the year in such city, town or village. If at the time such tax

becomes due and payable, the tax rate for the current year of such city,

town or village has not been fixed, the same shall be estimated by the

assessors thereof. An ordinance, local law or resolution providing for a

tax hereunder may require verified reports to be filed from time to time

relating to stock and sales, and may make such further requirements as

may be necessary in order to determine the amount of such tax, and to

provide for the collection thereof. A transient business is one

conducted in a store, hotel, house, building or structure for the sale

at retail of goods, wares or merchandise, excepting food products, and

which is intended to be conducted for a temporary period of time and not

permanently. If the place in which a business is conducted is rented or

leased for a period of six months or less, such fact shall be

presumptive evidence that the business carried on therein is a transient

business. Any person or corporation failing to pay said tax, or failing

to obey the provisions of an ordinance, local law or resolution adopted

hereunder, shall be guilty of a misdemeanor.

Regulation of commercial and business activities on Memorial day

and Independence day. The municipal officers and boards in the several

cities, towns and villages of this state now having the authority to

enact ordinances and local laws, may adopt ordinances or local laws

regulating the nature of commercial and business activities that may be

conducted on Memorial day and Independence day and the hours within

which the various types of commercial and business activities may be

conducted on Memorial day and Independence day. Provision shall be made

in such ordinances or local laws for punishment of violations thereof.

Regulation of installation of portable electrical equipment

used for amusement devices. The governing body of any city, town or

village in this state, may adopt ordinances or local laws making it

unlawful for any person, firm or corporation to install or cause to be

installed, or to alter, repair or maintain any portable electrical

equipment connected to fifty or more volts of electrical power, which

equipment is intended for use by the public, either as an amusement

device or a vending machine, unless such equipment shall be so installed

that all exposed metal or other conducting surfaces and parts are

effectively grounded in a manner approved by existing electrical

installation codes. Provisions shall be made in such ordinances or local

laws for punishment of violations thereof.

Support and maintenance of charitable and other institutions.

Boards of estimate and apportionment, common councils, boards of

aldermen, boards of supervisors, town boards, boards of trustees of

villages and all other boards or officers of counties, cities, towns and

villages, authorized to appropriate and to raise money by taxation and

to make payments therefrom, are hereby authorized, in their discretion,

to appropriate and to raise money by taxation and to make payments from

said moneys, and from any moneys received from any other source and

properly applicable thereto, to charitable, eleemosynary, correctional

and reformatory institutions wholly or partly under private control, for

the care, support and maintenance of their incarcerated individuals and

out-patients, of the moneys which are or may be appropriated therefor;

such payments to be made only for such incarcerated individuals as are

received and retained therein pursuant to regulations established by the

state department of social services or other state department having the

power of inspection thereof. In the absence within the state of adequate

facilities conveniently accessible, payments for the support, care and

maintenance of incarcerated individuals and out-patients may be made to

institutions, wholly or partly under private control, of a charitable or

eleemosynary character, located without the state, which institutions if

located within the state would be subject to the visitation, inspection

and supervision of the department of social services. However, such

payments may be made only to institutions conducted in conformity with

the regulations of such department.

* § 88. Disposition of stray or unwanted dogs by municipality. 1. A

municipality may by local law or ordinance provide that stray or

unwanted dogs be given to an agency which trains seeing eye dogs or to a

police department which trains dogs as guards.

2. The agency or department may by written order requisition in lieu

of destruction or intended destruction, unlicensed, unwanted or

unclaimed dogs which may be seized and impounded pursuant to law.

3. Any animal so requisitioned shall be retained within the pound for

at least five days in addition to the period within which it may be

claimed by its owner, and if still unclaimed may then be given to such

requisitioner.

4. Licensed dogs surrendered to the municipality or an animal shelter

shall not be requisitioned without the written consent of the owner

obtained at the time of the surrender.

* NB There are 2 § 88's

Merit award board to reward employees for suggestions. 1. Any

city, county, town, village, school district or board of cooperative

educational services is hereby authorized and empowered to establish a

merit award board for the purpose of rewarding its employees for

suggestions which result in a more efficient and economical operation of

its government and may raise and expend moneys for the purposes thereof.

2. In cities such board shall consist of the mayor, corporation

counsel and such council members as may be designated by the council and

in counties such board shall consist of the chair of the board of

supervisors and such members thereof as shall be chosen by the board. In

towns such board shall consist of the town supervisor and such members

as the town council shall designate. In villages such board shall

consist of the mayor and members designated by the board of trustees. In

school districts, such board shall consist of the president of the board

of education and such members thereof as shall be chosen by the board of

education. In boards of cooperative educational services, such board

shall consist of the president of the board of cooperative educational

services and such members thereof as shall be chosen by the board of

cooperative educational services.

3. Such merit award boards when so established shall make rules and

regulations to provide for the rewarding of employees of the

municipality, school district or board of cooperative educational

services for the purposes hereinbefore set forth.

4. Nothing herein contained shall in any way add to or diminish the

existing powers of the city of New York with reference to establishment

of a merit award board, and its powers.

Payment of debts of illegal corporations. Whenever an attempt

has been or is hereafter made to create a municipal corporation, either

by special act of the legislature or by proceedings taken under the

general laws of the state, and such corporation has chosen officers and

has exercised the powers, duties and authority vested in it by the law

under which it purports to have been created, and such corporation has

become indebted to any person, association or corporation in the

aggregate amount of five hundred dollars or more, and such corporation

shall have been held or declared to be no corporation by a court of

record of competent jurisdiction of this state, either because the

special act creating it is declared to be unconstitutional, or

otherwise, then such corporation shall be deemed a de facto corporation

for the purpose of winding up its affairs and paying its indebtedness;

and its officers shall be deemed de facto officers and shall have all

the powers and authority and shall perform all the functions and duties

vested in or required of them under the law pursuant to which such

corporation was attempted to be created, so far as may be necessary to

liquidate the affairs of such corporation and to pay its money

obligations, including all the power and authority to assess, levy and

collect taxes upon the taxable persons and property within the corporate

limits of such illegal corporation, to such an amount as shall be

sufficient to pay obligations of such corporation and the expense

incident thereto.

2. Such de facto officers shall keep an accurate record of all their

proceedings hereunder, including the amount of money raised by taxation

and the purpose for which it was raised and the amount of money paid

out, to whom and for what purpose. They shall audit all bills before

payment and shall take receipts for all moneys paid out.

3. When all the indebtedness of such illegal corporation has been paid

and its obligations discharged, such de facto officers shall make a

full, complete and accurate report, under oath, to the county judge of

the county in which such illegal corporation is located or to a justice

of the supreme court of all their proceedings hereunder and on the order

of such judge or justice approving and confirming such report, such de

facto officers shall be discharged and their functions and duties shall

cease. Such report and order shall be filed in the office of the county

clerk of the county in which such illegal corporation was located.

Payment of overtime compensation to public officers or

employees. The governing board of each municipal corporation or other

civil division or political subdivision of the state, or in the city of

New York, the mayor, by ordinance, local law, resolution, order or rule,

may provide for the payment of overtime compensation to any or all

public officers except elective officers and those officers otherwise

excluded by law and to any or all public employees under their

jurisdiction at the regular basic pay rate of such officers or employees

for all time such officers or employees are required to work in excess

of their regularly established hours of employment or at such other rate

as such governing board, or in the city of New York, the mayor, may

authorize. The amounts received as overtime compensation under this

section shall be regarded as salary or compensation for any of the

purposes of any pension or retirement system of which the officer or

employee receiving the same is a member, except as set forth in sections

five hundred one, six hundred one, and twelve hundred three of the

retirement and social security law. Such overtime compensation shall not

be regarded as salary or compensation for the purpose of determining the

right to any increase of salary or any salary increment on account of

length of service or otherwise. No such overtime compensation shall be

construed to constitute a promotion.

Payment of rewards for apprehension and conviction of a person

or persons guilty of felony or misdemeanor. The governing board of any

municipal corporation shall have power to offer, appropriate and pay

rewards of not more than one thousand dollars for information which

shall lead to detection, arrest and conviction of a person or persons

guilty of a misdemeanor and not more than twenty-five thousand dollars

for information which shall lead to the detection, arrest and conviction

of a person or persons guilty of a felony or felonies; provided,

however, that no police officer, peace officer, or any other law

enforcement officer or official shall be entitled, directly or

indirectly, to collect any such reward.

Arson investigation. 1. Every municipal corporation, the

office of fire prevention and control, and any two or more municipal

corporations jointly, are hereby authorized and empowered to investigate

and to take such action as may be required to formulate task forces,

teams, fire and/or police investigative units to investigate any case of

a burn injury or wound sustained as reported pursuant to section 265.26

of the penal law, and to ascertain the cause of fires or explosions of

suspicious origin within the municipality or participating

municipalities, pursue necessary investigation thereof and assist in the

preparation and prosecution of cases stemming from any alleged criminal

activity attendant to such fires or explosions. In the case of a joint

endeavor by two or more municipal corporations, the share of the costs

to be borne by each such municipal corporation shall be fixed by

contract. The expenditure of moneys for such purpose by a municipal

corporation shall be deemed a lawful municipal purpose and the moneys

appropriated for the purpose shall be raised by tax upon the taxable

real property within the municipal corporation in the same manner as

moneys for other lawful municipal purposes. Each municipal corporation

is hereby authorized to accept and disburse grants of public or private

money or other aid paid or made available by the state or federal

government for such purpose or purposes.

2. Where an investigative unit formed by this section has investigated

a fire and such fire is suspected to have been ignited by a cigarette

and not caused by arson, the investigative unit shall forward to the

office of fire prevention and control within fourteen days of completing

the investigation into such fire information detailing, to the extent

possible: (a) the specific brand and style of the cigarette suspected of

having ignited such fire; (b) whether the cigarette package was marked

as required by subdivision six of section one hundred fifty-six-c of the

executive law; and (c) the location and manner in which such cigarette

was purchased.

Vacations, sick leaves and leaves of absence of officers and

employees. 1. The governing board of each county, city, town, village,

school district, and of each fire district or other district corporation

and of each civil or political division of the state by local law,

ordinance or resolution, or in the city of New York the mayor by order

may grant vacations, sick leaves and leaves of absence to its officers

or employees with or without pay and adopt rules and regulations in

relation thereto. Notwithstanding any other provision of law, any such

governing board or mayor may also in like manner provide for cash

payment of the monetary value of accumulated and unused vacation time or

time allowances granted in lieu of overtime compensation standing to the

credit of its officers and employees at the time of their separation

from the service, or in case of death in service, to be paid to their

beneficiaries.

2. An employee of a county, city, town, village, school district, and

of each fire district or other district corporation and of each civil or

political division of the state who is elected by an employee

organization certified or recognized by the employer pursuant to article

fourteen of the civil service law may be granted a leave of absence from

their regular position for the purpose of serving with such employee

organization.

3. The governing board of each county, city, town, village, school

district, and of each fire district or other district corporation and of

each civil or political division of the state may provide by local law,

ordinance or resolution or in the city of New York the mayor by order,

that vacations granted to its officers and employees shall be earned by

and credited to them for each day, week or month of service and for the

payment for such earned and credited vacations prior to the commencement

thereof.

Medical, surgical and hospital services or insurance for

officers, employees and retired officers and employees of public

corporations and their families. 1. As used in this section, the term

"public corporation" shall mean a municipal corporation, a district

corporation, a school district, a consolidated health district and a

county or town special district or a joint special district, governed by

a separate board of commissioners. Officers, employees and retired

officers and employees of a county or town special district which is not

governed by a separate board of commissioners shall be deemed to be

county or town officers and employees, or retired officers and

employees, respectively.

1-a. As used in this section the term "retired officer" shall include

any former school board member with twenty years or more service in such

position. The total cost of participation by such former school board

members and their families shall be borne by such former members.

2. A public corporation may contract with a non-profit membership

corporation, organized under article forty-three of the insurance law

and approved by the superintendent of financial services and the state

board of social welfare, or with any insurance company authorized to do

business in this state for the purpose of furnishing medical and

surgical services and hospital service as defined in such article

forty-three, or medical and surgical and hospital insurance to persons

who contract with such non-profit membership corporation or insurance

company, or who subscribe to a plan or plans, as hereinafter provided.

Any such contract entered into by a public corporation shall permit any

officer or employee or group of officers or employees of an agency or

department of the public corporation voluntarily to subscribe to a plan

or plans providing for medical and surgical and hospital insurance for,

or medical and surgical services and hospital service to, such officers

or employees and their families. Any such contract entered into by a

public corporation may, if authorized by the governing board or body and

subject to such conditions, limitations and eligibility requirements as

may be fixed by such board or body, permit any retired officers and

employees or group of retired officers and employees of an agency or

department of the public corporation voluntarily to subscribe to such a

plan or plans to provide such insurance for or service to themselves and

their families. The comptroller or other disbursing officer of the

public corporation, or of any fund out of which officers or employees of

such public corporation are paid, is authorized to deduct from the wages

or salary of such contracting or subscribing officer or employee, with

his prior consent, in writing, the sums required to be paid by such

officer or employee to such non-profit membership corporation or

insurance company. Such public corporation, if such contract or plan

provides that the employer shall contribute a share of the cost of such

medical and surgical services and hospital service, or medical and

surgical and hospital insurance, for its officers and employees or

retired officers and employees, is authorized to appropriate a sum

required to be paid under such contract by the public corporation as

employer. The sum to be paid by it under such contract, in the

discretion of such public corporation, may be any percentage of the

total cost including the whole thereof. Where the compensation of any

officer or employee whose position is covered by medical and surgical

services and hospital service or medical and surgical and hospital

insurance pursuant to this section is paid from a special or

administrative fund provided for by law, the contributions required to

be paid by the public corporation for such coverage shall be paid from

such special or administrative fund. The public corporation shall be

authorized to pay directly to such non-profit membership corporation or

to such insurance company, the total of such appropriation and of such

officer and employee deductions.

3. The authority conferred upon public corporations by this section

shall be in addition to and in no way a limitation upon the authority

conferred upon such public corporations to provide the same or similar

benefits for their officers and employees pursuant to article eleven of

the civil service law.

4. The provisions of this section shall apply to school board members,

provided however, that the total cost of participation by such school

board members and their families shall be borne by such members.

5. Any contract or contracts made pursuant to this section by a city

with a population of one million or more inhabitants and any plan or

plans effectuated by any such contract or contracts shall be

administered by the department of personnel or the office of municipal

labor relations of such city, or if there be no such department or

office therein, by a department, agency, or officer thereof designated

by the mayor of such city.

6. (a) Notwithstanding any general, special or local law to the

contrary, the governing board of a public corporation that, in lieu of

contracting pursuant to subdivision two of this section, self-funds

medical, surgical or hospital benefits, may enter into agreements with

duly qualified contract administrators or other service providers to

receive, investigate, make recommendations on, audit, approve or make

payment of claims for such benefits. Such agreements shall be entered

into pursuant to competitive bidding, or written request for proposals

in accordance with the procurement policies and procedures of the public

corporation adopted pursuant to section one hundred four-b of this

chapter.

(b) In order to authorize the payment of claims for benefits audited

and approved by a contract administrator or other service provider, an

agreement entered into pursuant to this subdivision may provide that

after claims have been audited by the contract administrator or other

service provider, the contract administrator or other service provider

shall periodically inform the public corporation of the total amount

payable in satisfaction of the audited and approved claims, together

with such other supporting information as the public corporation may

require, and the public corporation may transfer moneys in that amount

to the contract administrator or other service provider for disbursement

to the claimants entitled thereto. Any such agreement shall provide that

if a check issued by the contract administrator or other service

provider in satisfaction of a claim remains unpaid after one hundred

eighty days, the moneys payable in satisfaction of that claim shall be

returned to the public corporation.

(c) Any agreement entered into pursuant to this subdivision shall

contain, at a minimum, the following:

(i) a clear statement of the charges, fees or other compensation for

the services provided under the agreement;

(ii) a statement that payment for the services provided under the

agreement shall be made only after the services are rendered;

(iii) a provision stating that the contract administrator or other

service provider to which functions are delegated shall be liable to the

public corporation for all loss or damage that may result from any

failure by the contract administrator or other service provider to

discharge their duties, or from any improper or incorrect discharge of

those duties, and a provision that expressly reserves to the public

corporation all legal rights of set-off. The contract administrator or

service provider shall save the public corporation free and harmless

from any and all loss occasioned by or incurred in the performance of

services under an agreement pursuant to this subdivision;

(iv) a provision requiring the contract administrator or other service

provider to furnish a surety bond, irrevocable letter of credit or

equivalent security, in a form and amount acceptable to the governing

board of the public corporation, to secure the contract administrator's

or other service provider's performance under the agreement;

(v) a provision requiring the contract administrator or service

provider to establish, maintain and retain for a specified period

complete and accurate books, records, documents, accounts and other

evidence pertinent to performance under the agreement, and to submit

quarterly and annual reports, in a form acceptable to the governing

board of the public corporation, detailing the payment of claims and

other activities of the contract administrator or other service provider

during the relevant period. The auditing body or official of the public

corporation shall have access to and may examine such books, records,

documents, accounts and other evidence pertinent to performance under

the agreement upon reasonable notice to the contract administrator or

service provider;

(vi) a provision requiring an annual audit, and opinions thereon, by

an independent certified public accountant, of the accounting procedures

and internal control procedures of the contract administrator or other

service provider;

(vii) a provision by which the contract administrator or other service

provider agrees to maintain the confidentiality of medical records in

its possession and that such confidentiality may only be waived upon the

written consent of the covered person; and

(viii) a provision by which the contract administrator or other

service provider acknowledges that those records maintained on behalf of

the public corporation are subject to the provisions of article six of

the public officers law.

(d) A contract entered into pursuant to this section shall be for a

term not to exceed five years, except that it shall be subject to

cancellation by the municipal corporation at any time upon thirty days'

notice.

7. The provisions of this section shall permit a public corporation to

provide coverage for volunteer firefighters, as defined in section three

of the volunteer firefighters' benefit law, and volunteer ambulance

workers, as defined in subdivision one of section three of the volunteer

ambulance workers' benefit law, provided however, that the total cost of

participation by such volunteers and their families shall be borne by

such volunteers.

Audit of claims under certain contracts for administering

medical assistance. Notwithstanding the provisions of section three

hundred sixty-nine of the county law or any other law, general, special

or local, relating to the audit and payment of claims for the payment of

money by a municipal corporation, a contract made pursuant to paragraph

d of subdivision one of section three hundred sixty-five of the social

services law, between a municipal corporation constituting a public

welfare district and a non-profit membership corporation organized under

article forty-three of the insurance law or with any insurance company

authorized to do business in this state, for the administration of all

or any part of the medical assistance required to be furnished pursuant

to title eleven of article five of the social services law, may, in

addition to its other provisions, authorize such membership corporation

or insurance company to audit and make payment with respect to claims

for such medical assistance.

Emergency service volunteer; paid leave. Notwithstanding any

provisions of law to the contrary, public officers and employees of

municipal corporations and school districts who are certified by the

American Red Cross as disaster volunteers shall be granted leave from

work with pay to participate in specialized disaster relief operations

upon written request for such services by the American Red Cross and

upon the approval of the chief executive of the municipal corporation

for which the public officer or employee serves or upon the approval of

the superintendent of the school district for which the employee serves.

The public officer or employee shall be compensated at his or her

regular rate of pay for those regular work hours during which the public

officer or employee is absent from work while participating in

authorized specialized disaster relief operations. Such leave shall be

provided without loss of seniority, compensation, sick leave, vacation

leave or other overtime compensation to which the volunteer is otherwise

entitled and shall not exceed twenty days in any calendar year.

Sick leave for officers and employees with a qualifying World

Trade Center condition. 1.(a) Notwithstanding any other law, rule or

regulation to the contrary, officers and employees of the state, a

public authority or any municipal corporation outside of a city with a

population of one million or more who have filed and received approval

for such filed notice of participation in World Trade Center rescue,

recovery or cleanup operations or was a participant in World Trade

Center rescue, recovery, or cleanup operations as such term is defined

in section one hundred sixty-one of the workers' compensation law, who

does not have such filed and approved notice of participation and has

filed a notice of participation under section one hundred sixty-two of

the workers' compensation law and is now employed by the state, a public

authority, or any municipal corporation, and subsequently developed a

qualifying World Trade Center condition, as defined in section two of

the retirement and social security law, shall, after the receipt of a

written request for line of duty sick leave, be granted line of duty

sick leave commencing on the date that such employee was diagnosed with

a qualifying World Trade Center condition regardless of whether such

officer or employee was employed by his or her current employer at the

time that such officer or employee participated in World Trade Center

rescue, recovery or cleanup operations. The officer or employee shall be

compensated at his or her regular rate of pay for those regular work

hours during which the officer or employee is absent from work due to

his or her qualifying World Trade Center condition. Such leave shall be

provided without loss of an officer or employee's accrued sick leave.

(b) A public employer shall not take any adverse personnel action

against a public employee regarding the employee's employment because

either (i) the employee utilizes, or requests to utilize, sick leave or

any other available leave due to a qualifying World Trade Center

condition, as such term is defined in section two of the retirement and

social security law, or (ii) the employee utilizes or requests to

utilize line of duty sick leave provided by this section.

(c) For purposes of this section, an "adverse personnel action" means

any discipline, including issuing a notice of discipline, discharge,

suspension, demotion, penalization, or discrimination against an

employee utilizing line of duty sick leave pursuant to paragraph (a) of

this subdivision.

Nothing in this section shall be deemed to diminish or impair the

rights of a public employee or employer under any law, rule, regulation

or collectively negotiated agreement or to prohibit any personnel action

which otherwise would have been taken regardless of any request to use,

or utilization of, any sick leave or other available leave due to a

qualifying World Trade Center condition or request to use, or

utilization of, any line of duty sick leave provided by this section.

2.(a) Notwithstanding any other law, rule or regulation to the

contrary, officers and employees of a city with a population of one

million or more who (i) do not receive benefits similar to those

provided by this section pursuant to a collectively bargained agreement,

section 14-122.1 of the administrative code of the city of New York,

section 15-108.1 of the administrative code of the city of New York, or

other statutory provision and (ii) have filed and received approval for

such filed notice of participation in World Trade Center rescue,

recovery or cleanup operations or was a participant in World Trade

Center rescue, recovery, or cleanup operations as such term is defined

in section one hundred sixty-one of the workers' compensation law, who

does not have such filed and approved notice of participation and has

filed a notice of participation under section one hundred sixty-two of

the workers' compensation law and is now employed by the state, a public

authority, or any municipal corporation, and subsequently developed a

qualifying World Trade Center condition, as defined in section two of

the retirement and social security law, shall, after receipt of a

written request for line of duty sick leave, be granted line of duty

sick leave commencing on the date that such employee was diagnosed with

a qualifying World Trade Center condition regardless of whether such

officer or employee was employed by his or her current employer at the

time that such officer or employee participated in World Trade Center

rescue, recovery or cleanup operations. The officer or employee shall be

compensated at his or her regular rate of pay for those regular work

hours during which the officer or employee is absent from work due to

his or her qualifying World Trade Center condition. Such leave shall be

provided without loss of an officer or employee's accrued sick leave.

(b) A public employer shall not take any adverse personnel action

against a public employee regarding the employee's employment because

either (i) the employee utilizes, or requests to utilize, sick leave or

any other available leave due to a qualifying World Trade Center

condition, as such term is defined in section two of the retirement and

social security law, or (ii) the employee utilizes or requests to

utilize line of duty sick leave provided by this section.

(c) For purposes of this section, an "adverse personnel action" means

any discipline, including issuing a notice of discipline, discharge,

suspension, demotion, penalization, or discrimination against an

employee utilizing line of duty sick leave pursuant to subdivision one

of this section.

Nothing in this section shall be deemed to diminish or impair the

rights of a public employee or employer under any law, rule, regulation

or collectively negotiated agreement or to prohibit any personnel action

which otherwise would have been taken regardless of any request to use,

or utilization of, any sick leave or other available leave due to a

qualifying World Trade Center condition or request to use, or

utilization of, any line of duty sick leave provided by this section.

3. For purposes of this section, "cost" shall mean the number of days

of sick leave that must be restored to an officer or employee pursuant

to subdivision one or two of this section multiplied by such officer or

employee's wage rate at the time that such sick leave for which

reimbursement is being sought was taken.

4. A request, for line of duty sick leave shall be in writing and

include a waiver of the protection afforded to the officer or employee

pursuant to the health insurance portability and accountability act to

allow disclosure of the officer or employee's approved notice of

participation and any medical records concerning such officer or

employee's notice of participation or qualifying World Trade Center

condition in the possession of the retirement system or workers'

compensation board in which such officer or employee is a member for the

purpose of reviewing, processing and auditing his or her claim for line

of duty sick leave. Such waiver shall be in the form required by the

retirement system of which he or she is a member or the workers'

compensation board, along with the application for line of duty sick

leave, with his or her employer.

5. Notwithstanding any provision of law to the contrary, upon request

from the state, public authority or municipal corporation other than a

city with a population of one million or more for a copy of an approved

notice of participation in World Trade Center rescue, recovery or

cleanup operations for an officer or employee, the retirement system in

which such officer or employee is a member and to which such officer or

employee filed his or her notice of participation in World Trade Center

rescue, recovery or cleanup operations in accordance with paragraph (a)

of subdivision thirty-six of section two of the retirement and social

security law, such retirement system shall provide a verified copy of

such approved notice of participation that includes the date that such

notice was filed to such requestor. A copy of such verified notice of

participation shall be filed with any claim for reimbursement submitted

to the civil service department pursuant to subdivision four of this

section. Except as required for filing, review, and audit purposes, such

verified notice of participation and all copies of such verified notice

shall be confidential and not subject to disclosure pursuant to article

six of the public officers law.

6. A public authority or municipal corporation other than a city with

a population of one million or more shall submit any claim for

reimbursement under this section to the civil service department. In

accordance with subdivision eight of section seven of the civil service

law, the civil service department shall review each claim to determine

if such claim shall be approved, reduced, amended or rejected and shall

notify the submitting public authority or municipal corporation, within

sixty days of receipt of such claim, as to its determination. Such

public authority or municipal corporation shall notify the civil service

department within thirty days after receipt of the civil service

department's notification, as to its acceptance or rejection of such

determination. Failure to so notify the civil service department shall

constitute an acceptance of the determination. If accepted by such

public authority or municipal corporation, such acceptance shall

constitute the final and conclusive determination for such claim.

Notwithstanding any other law to the contrary, there shall be no appeal

of such determination to the civil service commission. If rejected by

such public authority or municipal corporation, such public authority or

municipal corporation may commence an action in accordance with the

provisions of article seventy-eight of the civil practice law and rules.

7. The civil service department shall certify all claims for which a

final determination has been made. The civil service department shall

submit all certified claims for payment on or before the first day of

the immediately succeeding month during which such claim was certified.

8. All claims certified by the civil service department shall be paid

monthly.

Payment of certain insurance premiums for officers and employees

of municipal corporations and agencies or instrumentalities thereof. 1.

The fiscal or disbursing officer of every municipal corporation is

hereby authorized to deduct from the wage or salary of any officer or

employee of the municipality who is insured under any group or group

plan of life, group accident or group health insurance or who is a

member of a corporation existing by virtue of article forty-three of the

insurance law, such amounts for the payment of the premium or premiums

or payments thereon, as such officer or employee may specify in a

writing filed with the said fiscal or disbursing officer and transmit to

the insurer the sum so deducted. Any such written authorization may be

withdrawn by such officer or employee or member at any time upon filing

written notice of such withdrawal with the fiscal or disbursing officer.

The provisions of this section shall apply to and be effective within

every city, county, town, village, school district and organized public

district in the state.

2. A municipal corporation, including a fire district, or town

improvement district governed by a separate board of commissioners, if a

group plan of life insurance provides that the employer shall contribute

a share of the cost of such insurance for its officers and employees, or

for the officers or employees of an agency or instrumentality thereof,

is authorized to appropriate a sum required to be paid under such plan

by the municipal corporation as employer. The sum to be paid by it under

such plan, in the discretion of the municipal corporation, may be any

percentage of the total cost, including the whole thereof. For the

purposes of this section, the term employee shall include the volunteer

firefighters of the municipality or fire district or employees,

commissioners, or officers of a town improvement district governed by a

separate board of commissioners.

Written statement of deductions to accompany payment of salary

or wages to officers or employees in certain cases. On and after July

first, nineteen hundred fifty-four, the chief fiscal officer of every

municipal corporation may, upon request in writing therefor, cause to be

given to any officer or employee with any payment of salary or wages, a

statement in writing of all deductions made from the basic amount of

such salary or wages.

The provisions of this section shall not apply to cities with a

population of one million or more.

Deductions from wages or salaries of civil service employees.

1. The fiscal or disbursing officer of every municipal corporation or

other civil division or political subdivision of the state is hereby

authorized to deduct from the wage or salary of any employee of such

municipal corporation or civil division or political subdivision of the

state such amount that such employee may specify in writing filed with

such fiscal or disbursing officer for the payment of dues in a duly

organized association or organization of civil service employees and to

transmit the sum so deducted to the said association or organization.

Any such written authorization shall remain in effect in accordance with

subdivision one of section two hundred eight of the civil service law.

2. The appropriate disbursing or fiscal officer of any municipality or

other political subdivision of the state is hereby authorized to deduct

from the salary of any employee of such municipality or political

subdivision such amount as such employee may specify in writing filed

with such appropriate disbursing or fiscal officer within the minimum

and maximum amounts prescribed by such appropriate disbursing or fiscal

officer for the purchase for such employee of United States bonds and

for contributions to federated community campaigns for health, welfare

and recreational purposes on behalf of such employee and to the account

of such employee with such federated community campaign. Such

appropriate disbursing or fiscal officer is hereby authorized to make

such rules and regulations governing the purchase of said bonds and

contributions to federated community campaigns as he deems necessary,

such rules and regulations to be incorporated in the employee's written

authorization of payroll deduction filed with such appropriate

disbursing or fiscal officer. Any such written authorization may be

withdrawn by such employee at any time by filing written notice of such

withdrawal with such appropriate disbursing or fiscal officer. As used

in this section "federated community campaign" means a charitable

non-profit organization which solicits funds for distribution among a

substantial number of charitable non-profit organizations.

3. Notwithstanding the provisions of and restrictions of sections two

hundred two and two hundred nine-a of the civil service law but subject

to the provisions of paragraph (b) of subdivision three of section two

hundred eight of such law, every employee organization that has been

recognized or certified as the exclusive representative of employees

within a negotiating unit of other than state employees shall be

entitled to have deducted from the wage or salary of the employees in

such negotiating unit who are not members of said employee organization

the amount equivalent to the dues levied by such employee organization,

and the fiscal or disbursing officer of such public employer shall

deduct from the salary of any employee represented by such employee

organization for the purpose of collective negotiations who has not

authorized the deduction of membership dues in such employee

organization pursuant to subdivision one of this section, an agency shop

fee deduction in the amount equivalent to the dues levied by such

employee organization. The fiscal or disbursing officer is further

authorized to accumulate such fees and transmit the fees so accumulated

to the employee organization.

4. The appropriate disbursing or fiscal officer of any municipality or

other political subdivision of the state is hereby authorized to deduct

from the salary of any employee of such municipality or political

subdivision such amount as such employee may specify in writing to be

filed with such appropriate disbursing or fiscal officer within the

minimum and maximum amounts prescribed by such appropriate disbursing or

fiscal officer for contributions to campus-related foundations and to

transmit the sums so deducted to such campus-related foundations. Any

such written authorization may be withdrawn by such employee at any time

upon filing written notice of such withdrawal with such appropriate

disbursing or fiscal officer. Such appropriate disbursing or fiscal

officer is hereby authorized to make such rules and regulations as he

deems necessary to provide for deductions for campus-related

foundations. As used in this subdivision, the term "campus-related

foundation" shall mean a non-profit corporation organized and existing

pursuant to the education law or the not-for-profit corporation law for

the benefit of a state-operated campus of the state university of New

York or for the benefit of a community college operating under the

program of the state university of New York.

The appropriate disbursing or fiscal officer of any

municipality or other political subdivision of the state is hereby

authorized to deduct from the salary of any employee of such

municipality or political subdivision such amount as such employee may

specify in writing filed with such appropriate disbursing or fiscal

officer for payment to any credit union doing business in the state of

New York, and to transmit the sums so deducted to the said credit union.

The disbursing or fiscal officer hereinbefore referred to is hereby

authorized to make such rules and regulations governing the payments to

credit unions as he deems necessary, such rules and regulations to be

incorporated in the employee's written authorization of payroll

deduction, filed with the fiscal or disbursing officer of every

municipal corporation or other civil division or political subdivision

of the state. Any such written authorization may be withdrawn by such

employee at any time by filing written notice of such withdrawal with

such appropriate disbursing or fiscal officer. As used in this section

"credit union" means a non-profit organization which serves only its

members and is chartered pursuant to the banking law of the state of New

York, or by the United States government pursuant to the federal credit

union act.

Payroll payment by banks or trust companies. The governing

body of any municipal corporation, school district, district

corporation, town or county improvement district, public authority, or

public corporation may enter into a contract to provide for the deposit

of the periodic payroll of such corporations, districts or authorities

in a bank or trust company for disbursal by them in accordance with the

provisions of section ninety-six-b of the banking law.

Earnings of municipal corporations from certain municipally

operated public utility services. Any municipal corporation operating a

gas, electric or water public utility service may earn from and out of

such operation an amount equivalent to taxes which the said service, if

privately owned, would pay to such municipal corporation; and, in

addition, such municipal corporation may earn from and out of such

operation a fair return on the value of the property used and useful in

such public utility service, over and above costs of operation and

necessary and proper reserves. Profits resulting from the operation of

such a public utility service may be used for the payment of expenses or

obligations incurred by such municipal corporation for municipal

purposes or for the payment of refunds to consumers. The provisions of

this section shall not apply to any gas, electric or water public

utility service operated by the city of New York or any agency thereof.

Tax equivalent payments of the city of Jamestown board of

public utilities. Notwithstanding any law, rule or regulation to the

contrary, in addition to the amount equivalent to taxes authorized to be

earned and paid pursuant to section ninety-four of this chapter, the

city of Jamestown is hereby authorized in the operation of its board of

public utilities electric utility service to earn and pay from such

operation to the Jamestown city school district an amount equivalent to

taxes which said service, if privately owned, would pay to such school

district. The terms and conditions of any such tax equivalent payments

shall be determined in accordance with agreements entered into from time