S50001-B

                STATE OF NEW YORK
        ________________________________________________________________________

                                          1--B

                                  Extraordinary Session

                    IN SENATE

                                      July 20, 2004
                                       ___________

        Introduced  by COMMITTEE ON RULES -- read twice and ordered printed, and
          when printed to be committed to the Committee on  Rules  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to  said  committee  --  committee  discharged,  bill amended, ordered
          reprinted as amended and recommitted to said committee

        AN ACT to amend the education law, the tax law and the  public  authori-
          ties  law,  in relation to providing the opportunity for a sound basic
          education and providing for  accountability  in  the  context  of  the
          public education system

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

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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD12222-11-4

        S. 1--B                             2

     1  directed that a study be performed on its behalf to ascertain the actual
     2  cost  of  providing  a  sound basic education in New York city and other
     3  school districts across the state.
     4    The  legislature  hereby  finds  that  the actual costs of providing a
     5  sound basic education should properly be determined  using  an  analysis
     6  whereby  expenditures  are examined in school districts that have educa-
     7  tion performance that meets  or  exceeds  expected  performance  levels,
     8  consistent  with  the  study  performed on behalf of the commission. The
     9  legislature further finds that  expected  education  performance  levels
    10  should  be  determined using scores on the fourth grade English Language
    11  Arts and fourth grade Math exams with successful schools  identified  as
    12  having  eighty  percent  of  their students demonstrating proficiency on
    13  such exams over a three-year period, and the five regents exams used for
    14  graduation, consisting of the 281 K-12 school  districts  identified  by
    15  the  state education department as meeting the operational definition of
    16  an adequate education.
    17    The  legislature  further  finds  that  educational  costs  should  be
    18  adjusted  using  those  weightings selected and reflected in the commis-
    19  sion's recommendations for the number of special education students, the
    20  number of students from economically disadvantaged backgrounds  and  the
    21  number  of students with limited English proficiency, with regional cost
    22  differences reflected utilizing the Geographic Cost of Education  Index.
    23  Furthermore, the legislature finds that it is appropriate to incorporate
    24  an  efficiency  factor  by  ranking  the  expenditures of the successful
    25  school districts and using the average expenditures of the lowest  fifty
    26  percent  of  such school districts, consistent with the study  performed
    27  on behalf of the commission.
    28    The legislature further finds that a combination of state,  local  and
    29  federal  funds  should be used to support the costs of providing a sound
    30  basic education in New York city and other school districts  across  the
    31  state, and that funding increases should be phased in over five years to
    32  ensure that school districts have adequate time in which to plan for the
    33  use of additional resources.
    34    The  legislature  further  finds  that  the legislation enacted herein
    35  reforms the current system of  financing  school  funding  and  managing
    36  schools  by  ensuring  that every school has the resources necessary for
    37  providing the opportunity for a sound basic education, and provides  for
    38  a  system of accountability to measure and ensure that the reforms actu-
    39  ally provide the opportunity for a sound basic education.
    40    § 3. The education law is amended by adding a new section 319 to  read
    41  as follows:
    42    §  319.  Office  of  educational  accountability;  oversight of poorly
    43  performing schools. The commissioner shall establish, within the depart-
    44  ment, a distinct  division  to  include  a  new  office  of  educational
    45  accountability  with  responsibility  for  administering  the  statewide
    46  system of accountability for public elementary and secondary schools  in
    47  accordance with this section and Title I, monitoring the performance and
    48  improvement of poorly performing schools, providing technical assistance
    49  to  poorly  performing  schools  and to school districts and other local
    50  educational agencies in improvement or corrective  action  status  under
    51  Title I.
    52    1. Definitions. As used in this section:
    53    (a)  "Office"  means  the  office of educational accountability of the
    54  department.
    55    (b) "Poorly performing school" means a public elementary or  secondary
    56  school  that  fails to meet criteria established by the office and shall

        S. 1--B                             3

     1  include all schools that fail to provide the  opportunity  for  a  sound
     2  basic education, and has been identified by the office.
     3    (c) "School improvement plan" means a single, comprehensive three-year
     4  school  improvement  plan developed for a poorly performing school, that
     5  is designed to improve student performance, is developed in  conjunction
     6  and  partnership  with  the  school  district  and  groups  representing
     7  parents, teachers and administrators from such school and  fulfills  all
     8  other  requirements of this section, the regulations of the commissioner
     9  and applicable federal law.  The first such plan shall be  submitted  by
    10  March  first,  two thousand five.   If the administrators or teachers do
    11  not agree with the plan approved by the board of education and submitted
    12  to the state, they may submit their objections to  the  state  with  the
    13  plan.  The plan for each school district with a poorly performing school
    14  shall be reviewed and approved by the office of educational accountabil-
    15  ity.
    16    (c-1) "District improvement plan"  means  a  comprehensive  three-year
    17  plan  detailing  how each district plans to provide an opportunity for a
    18  sound basic education in all their schools by the end  of  three  years.
    19  The  plan  shall be developed in conjunction and partnership with groups
    20  representing parents, teachers and administrators from poorly performing
    21  schools. The plan shall consider district needs in providing an opportu-
    22  nity for a sound basic education. Such plan shall be updated each  year.
    23  The  first  such  plan  shall  be submitted by March first, two thousand
    24  five. (i) Each school district shall include a resource allocation  plan
    25  as  part of the comprehensive district improvement plan. This plan shall
    26  ensure that each school  has  the  educational  resources  necessary  to
    27  provide the opportunity for a sound basic education. The allocation plan
    28  may  include allocation of resources in the following areas based on the
    29  district needs identified in the plan developed in accordance  with  the
    30  opening paragraph of this paragraph:
    31    a. improvement in quality of teaching and instructional leadership for
    32  schools  including  for  school districts with poorly performing schools
    33  the allocation of teachers among schools and utilizing initiatives  such
    34  as  competitive  pay scales for teachers, additional stipends to attract
    35  qualified teachers for math, science, bilingual education  and  hard  to
    36  staff schools, pay for performance plans and career ladders to encourage
    37  experienced teachers to remain in teaching;
    38    b. appropriate class sizes;
    39    c. school facilities;
    40    d. pre-k and early childhood education services;
    41    e. services for at-risk students;
    42    f.  services for students with disabilities and English language lear-
    43  ners;
    44    g. ensuring adequate instrumentalities of learning;
    45    h. alternative placements for disruptive students;
    46    i. parental accountability and involvement;
    47    j. student involvement and accountability; and
    48    k. longer school day and longer school year.
    49    (ii) The school district shall submit the completed plan to the office
    50  of educational accountability. If the administrators or teachers do  not
    51  agree  with the plan approved by the board of education and submitted to
    52  the state, they may submit their objections to the state with the  plan.
    53  The  plan for each school district with a poorly performing school shall
    54  be reviewed and approved by the office of educational accountability.

        S. 1--B                             4

     1    (d) "Title I" means Title I, Part A of the  Elementary  and  Secondary
     2  Education  Act  of  1965,  as amended by the No Child Left Behind Act of
     3  2001 and any subsequent laws.
     4    2. Responsibilities of the office. The office shall have the following
     5  responsibilities:
     6    (a)  Implementing the state system of accountability of public schools
     7  and school districts for student academic performance;
     8    (b) Establishing criteria for the identification of poorly  performing
     9  schools, which shall be incorporated into the regulations of the commis-
    10  sioner;
    11    (c)  Assisting  in  developing,  reviewing  and approving district and
    12  school improvement plans;
    13    (d) Making periodic  site  visits  to  assist  with  and  ensure  that
    14  approved  district  and  school  improvement plans are being implemented
    15  within the prescribed timeline;
    16    (e) Holding school districts  and  other  local  educational  agencies
    17  accountable  for  implementing  approved district and school improvement
    18  plans;
    19    (f) Ordering school districts and other local educational agencies  to
    20  take  the actions contained in the approved district and school improve-
    21  ment plans and imposing sanctions for noncompliance, which may  include,
    22  but  not  be  limited  to, acceleration of the timetable for closing and
    23  reconfiguring a school;
    24    (g) Requiring each school district that operates a  poorly  performing
    25  school  to  develop  a  district  improvement plan for the allocation of
    26  resources that will ensure that each poorly performing  school  operated
    27  by  the school district has adequate educational and fiscal resources to
    28  provide an opportunity for a sound basic education, and to  submit  such
    29  plan to the office for review and approval;
    30    (h)  Developing  a  value  added accountability system to increase the
    31  efficiency and effectiveness of school program planning and  implementa-
    32  tion.  The system will track each student's performance based on assess-
    33  ments that review progress over time.
    34    The system will track  how  effectively  state  and  local  resources,
    35  including  resources identified in the school improvement plans required
    36  by this section, are utilized at the local school level to enable  state
    37  and  local  policymakers  to make better-informed judgments on education
    38  related policies, reforms and expenditures each year. The  system  shall
    39  include but not be limited to data on school performance, attendance and
    40  dropout  data and financial data. In order to facilitate the creation of
    41  this system, the department shall develop  an  information  system  plan
    42  that integrates the databases required for this system.
    43    (i)  Evaluating student performance data and providing a comprehensive
    44  annual report to be  submitted  to  the  governor  and  the  legislature
    45  including,  but  not  limited to, a summary of poorly performing schools
    46  and the progress of corrective actions taken by the office to assist  in
    47  ensuring  that  a  sound  basic education is being provided. Such report
    48  shall be due to the governor and the legislature no later than the first
    49  of January following the close of the preceding school year discussed in
    50  the report;
    51    (j) Ensuring that school districts  report  to  the  public  on  their
    52  student  performance  and  notify  parents  when their child's school is
    53  identified as poorly performing; and
    54    (k) Ensuring that school districts and other local  educational  agen-
    55  cies  that receive Title I funds notify parents of their right to public

        S. 1--B                             5

     1  school choice and supplemental educational services in  accordance  with
     2  Title I.
     3    3.  Closure and reconfiguration or redesign. Notwithstanding any other
     4  provision of law, rule  or  regulation  to  the  contrary,  each  poorly
     5  performing  school  that  does  not  provide the opportunity for a sound
     6  basic education as determined by the office after three years of  imple-
     7  mentation of a school improvement plan pursuant to this section shall be
     8  closed  and reconfigured or redesigned and reopened under a new building
     9  principal and, to the extent practicable and consistent with  applicable
    10  collective  bargaining agreements and the tenure laws, with new staff to
    11  replace any school staff who contributed to the school's  poor  perform-
    12  ance.    Provided,  however,  that  a  poorly performing school that has
    13  already been reconfigured or redesigned pursuant to a Title I corrective
    14  action plan and/or has already replaced its building  principal  may  be
    15  excused by the office from any requirements of this subdivision that the
    16  office  determines  to  be  unnecessary  to improve student performance.
    17  Notwithstanding any other provision of law to the contrary, failure of a
    18  school to provide the opportunity for  a  sound  basic  education  after
    19  three  years  under a school improvement plan shall be deemed just cause
    20  for dismissal of the building principal.  Where  the  office  determines
    21  that  a poorly performing school has made adequate progress within three
    22  years of implementation of a school improvement  plan,  and  the  school
    23  subsequently  fails  to provide the opportunity for a sound basic educa-
    24  tion, the office may require closing and reconfiguration or redesign  of
    25  the  school  pursuant  to this subdivision, provided that the school has
    26  failed to provide the opportunity for a  sound  basic  education  in  at
    27  least three of the preceding five years.
    28    4. Appointment of master educator. (a) Upon identification of a school
    29  as  poorly  performing,  a  master  educator  shall  be appointed by the
    30  commissioner to assist in the  development  of  the  school  improvement
    31  plan,  monitor  and advise the director of the office, the commissioner,
    32  board of regents and local school officials  on  implementation  of  the
    33  school  improvement plan. The master educator shall report periodically,
    34  and at least twice a year, on the school's progress in implementing such
    35  plan. Such progress report shall be submitted to  the  director  of  the
    36  office,  the  commissioner and the board of regents, the board of educa-
    37  tion or trustees, the superintendent of schools or  other  chief  school
    38  officer and the building principal of the school, and may contain recom-
    39  mendations for changes or improvement in implementation of the plan. The
    40  master  educator  shall  also  periodically meet with representatives of
    41  pedagogical employees of the poorly performing school.
    42    (b) Notwithstanding any other law, rule or regulation to the contrary,
    43  where a poorly performing school does  not  make  adequate  progress  as
    44  determined  by the office for three years after closure and reconfigura-
    45  tion or redesign pursuant to subdivision  three  of  this  section,  the
    46  office  shall appoint an executive educator to be assigned to the school
    47  to manage and oversee the school pursuant to this  paragraph.  In  addi-
    48  tion,  the  office  shall  have  the  discretion to appoint an executive
    49  educator to manage  and  oversee  any  school  identified  as  being  in
    50  restructuring  status under Title I that is required to implement a form
    51  of alternative governance under Title I. The  executive  educator  shall
    52  have  the  power  to  supersede  any  decision or action by the board of
    53  education, superintendent of schools, chancellor or other  chief  execu-
    54  tive officer, or building principal or other school administrator on any
    55  matter  relating  to  operation of the poorly performing school, to make
    56  all decisions relating to the appointment, discipline  or  abolition  of

        S. 1--B                             6

     1  positions  of  the  building  principal  or school staff consistent with
     2  relative collective bargaining and all laws, rules, and regulations, and
     3  to order school officials of the  school  district  or  school  to  take
     4  actions  to  improve  the  performance  of  the school. Where the office
     5  determines that a poorly performing school has  made  adequate  progress
     6  within  three  years of closure and reconfiguration or redesign, and the
     7  school subsequently fails to provide the opportunity for a  sound  basic
     8  education,  the  office may require appointment of an executive educator
     9  pursuant to this subdivision, provided that the  school  has  failed  to
    10  provide the opportunity for a sound basic education in at least three of
    11  the preceding five years.
    12    5.  Access  to  resources  and  data.  Upon request of the office, the
    13  department, any board of cooperative educational services and any school
    14  district under the jurisdiction of the office,  to  the  maximum  extent
    15  feasible,  shall  cooperate  with  and  make  its  staff, facilities and
    16  resources available to assist the office in carrying out  its  responsi-
    17  bilities,  and  shall  provide the office upon request with all data and
    18  records in its possession that relate to the functions of the office  in
    19  administering the systems of accountability for academic performance and
    20  fiscal accountability.
    21    § 4. Subdivisions 2 and 4 of section 2576 of the education law, subdi-
    22  vision  2 as amended by chapter 65 of the laws of 1972 and subdivision 4
    23  as renumbered by chapter 762 of the laws of 1950, are amended and a  new
    24  subdivision 5-b is added to read as follows:
    25    2.  In  the  city  school districts of Syracuse, Rochester and Yonkers
    26  such estimate shall be filed with the mayor or city manager. Such  offi-
    27  cer  shall  place  such estimate before the board of estimate and appor-
    28  tionment or other similar body at the same time and in the  same  manner
    29  as  estimates  from  city departments or officers are placed before said
    30  board or body, and such estimate shall thereafter be subject to the same
    31  consideration, action and procedure as all  other  estimates  from  city
    32  departments or officers, subject to the limitations provided by subdivi-
    33  sion  five-b  of  this  section.    The said board or body may increase,
    34  diminish or reject any item contained in said estimate, subject  to  the
    35  limitations  provided  by subdivision five-b of this section, except for
    36  fixed charges for which the  city  is  liable.  When  such  estimate  is
    37  adopted, the said board or body shall file it with the common council.
    38    4.  In  a  city which had, according to the federal census of nineteen
    39  hundred forty, a population of four hundred thousand or  more  but  less
    40  than  one  million such estimate shall be filed with the officer author-
    41  ized to receive other department estimates and the same acted on by such
    42  officer and by the council of such city in the same manner and with  the
    43  same  effect  as  other department estimates, subject to the limitations
    44  provided by subdivision five-b of this section.   The  council  is  also
    45  authorized,  in  its discretion, to include in such budget a sum for any
    46  of the purposes enumerated in paragraph c of  subdivision  one  of  this
    47  section,  and  any further amount for such purposes as may be authorized
    48  by a tax election held in such city pursuant to the provisions  of  this
    49  chapter.  After  the adoption of such budget the council shall cause the
    50  amount thereof to be included in the tax and assessment roll of the city
    51  and the same shall be collected in the same manner and at the same  time
    52  as  other  taxes  of the city are collected, and placed to the credit of
    53  the board of education.
    54    5-b. a. For the purposes of this subdivision, the terms:
    55    (i) "city funds" shall mean funds of a city with more than one hundred
    56  twenty-five thousand and less than one million inhabitants derived  from

        S. 1--B                             7

     1  any  source  except  funds contained within the capital budget and funds
     2  derived from any federal, state or private sources over which  the  city
     3  has no discretion.
     4    (ii)  "city amount" shall mean the total amount of expenditures funded
     5  by city funds for the support of the city school district of a city with
     6  more than one hundred twenty-five thousand and  less  than  one  million
     7  inhabitants,  not  including  city payments for debt service or payments
     8  for pension benefits for employees of such district, as contained within
     9  the budget as adopted.
    10    (iii) "base year" shall mean the fiscal year immediately preceding the
    11  fiscal year for which the budget referred to  in  subparagraph  (ii)  of
    12  this  paragraph  is  adopted. The initial base year shall be fiscal year
    13  ending June thirtieth, two thousand four.
    14    b. The city amount shall not be less than the city amount appropriated
    15  in the base year as determined at the time of adoption of the budget for
    16  the ensuing fiscal year. Provided,  however,  in  the  event  the  total
    17  amount  of  city  funds relied upon to balance such budget is lower than
    18  the total amount of city funds appropriated in the base year, determined
    19  at the time of adoption of such budget, the city amount may  be  reduced
    20  by  up to the same percentage as the overall percentage decrease in city
    21  funds between the base year and the ensuing fiscal year.
    22    § 5. The education law is amended by adding a  new  section  215-d  to
    23  read as follows:
    24    §  215-d.  Annual  report  by  regents  to governor and legislature on
    25  student performance; study of performance standards and assessments.  1.
    26  The board of regents shall prepare and submit to the governor, the pres-
    27  ident  pro  tem  of the senate and the speaker of the assembly not later
    28  than January first, two thousand five and by the first day of January in
    29  each year thereafter, a report on student performance in  the  preceding
    30  school  year on required state assessments and the impact of current and
    31  proposed future policies  related  to  the  setting  of  state  academic
    32  content  standards  and  academic  performance standards for purposes of
    33  state accountability on school district finances. The  department  shall
    34  conduct  a  public  hearing  on  the proposed report and shall include a
    35  summary of the input received at  such  hearing  in  the  final  report.
    36  Following submission of the report, the board of regents and commission-
    37  er shall hold a public meeting with the Governor to discuss the results.
    38    2.  The  board of regents shall appoint an independent panel to review
    39  the current state academic performance standards  and  regents  examina-
    40  tions and assessments used for graduation purposes, and make recommenda-
    41  tions  to  the  regents and the commissioner on alignment of the regents
    42  examinations and assessments with the state learning standards  and  the
    43  scoring of such assessments, including recommendations on ways to assure
    44  that  scoring is as consistent and understandable to practitioners as is
    45  practicable. Such independent panel shall include representatives of the
    46  education community, including but not limited to parents,  schools  and
    47  school  districts  and  organizations  representing  teachers and school
    48  administrators, institutions of higher education, labor and the business
    49  community.  The department shall provide the panel with necessary  staff
    50  support  and  resources  and, upon request of the panel, shall conduct a
    51  survey of parents, students, teachers,  school  administrators  and  the
    52  labor  and  business  communities for their views on such state academic
    53  performance standards and assessment issues. The panel shall  report  to
    54  the  regents  by  a date prescribed by the regents, which shall be on or
    55  before the date on which the regents  establish  the  passing  score  on

        S. 1--B                             8

     1  regents  examinations for the two thousand five--two thousand six school
     2  year.
     3    3.  The  board of regents shall monitor the performance of students in
     4  career and technical education programs  to  ascertain  if  the  current
     5  diploma  requirements  for  such  students have had an adverse impact on
     6  enrollment or completion rates for such  programs,  and  shall  consider
     7  adjustments  in  such diploma requirements to ensure these students have
     8  the opportunity to meet the requirements. The regents  shall  include  a
     9  report on the impact of such diploma requirements for career and techni-
    10  cal  education students in the annual report required pursuant to subdi-
    11  vision one of this section.
    12    § 6. Intentionally omitted.
    13    § 7. Intentionally omitted.
    14    § 8. Intentionally omitted.
    15    § 9. Intentionally omitted.
    16    § 10. Intentionally omitted.
    17    § 11. Intentionally omitted.
    18    § 12. Intentionally omitted.
    19    § 13. Intentionally omitted.
    20    § 14. Intentionally omitted.
    21    § 15. Intentionally omitted.
    22    § 16. Section 3004 of the education law is amended by adding  two  new
    23  subdivisions 4 and 5 to read as follows:
    24    4.  a.  The commissioner shall adopt regulations to establish alterna-
    25  tive certification procedures for the issuance of teacher's and adminis-
    26  trator's certificates to candidates who do not meet all the  educational
    27  requirements for a certificate but whose training and experience are the
    28  substantial equivalent of such requirements and qualify such persons for
    29  the  duties  of  a teacher or school administrator. For purposes of this
    30  section, any person making  application  for  alternative  certification
    31  shall  be considered to have the substantial equivalent of any education
    32  requirement if he or she has earned any post-baccalaureate degree  in  a
    33  degree field related to the certification area for which he or she seeks
    34  a  teacher's  certificate,  or if he or she has attained a baccalaureate
    35  degree in a degree field related to the certification area for which  he
    36  or  she  seeks  a  teacher's  certificate and has at least five years of
    37  documented satisfactory experience in a field  related  to  the  certif-
    38  ication  area  for which he or she seeks a teacher's certificate.  Indi-
    39  viduals seeking alternative certification  pursuant  to  this  paragraph
    40  shall  be  required  to  take and pass all the examinations required for
    41  certification within two years of the date they are employed by a  board
    42  of education or board of cooperative educational services as a certified
    43  employee.
    44    b. The commissioner shall also adopt regulations to provide for alter-
    45  native  certification procedures for the issuance of an initial teaching
    46  certificate to candidates who have attained a baccalaureate  degree  but
    47  who do not meet all the educational requirements for an initial teaching
    48  certificate.  For purposes of this section, a person shall be considered
    49  to have the substantial equivalent of any education requirement for  the
    50  receipt  of  an initial teaching certificate if he or she has attained a
    51  baccalaureate degree and has achieved a passing grade on required  state
    52  exams  for the receipt of an initial teaching certificate, provided that
    53  any person receiving an initial certificate pursuant to  this  paragraph
    54  shall  have  two  years from the date they received such initial certif-
    55  ication to achieve a passing grade on any required exam related to peda-
    56  gogic methods.

        S. 1--B                             9

     1    c. School districts  hiring  teachers  receiving  alternative  certif-
     2  ication  shall  include in their school and district improvement plans a
     3  section describing the pre-service  and  in-service  training  including
     4  mentoring  that  will  be  provided to individuals receiving alternative
     5  certification  pursuant  to  this  section,  provided that nothing shall
     6  prohibit the school district from providing such training through  their
     7  own professional development program or by contract with another entity.
     8    5.  The  commissioner  shall  promulgate  regulations  to require that
     9  school district  administrators  and  supervisors  receive  time-limited
    10  initial  and professional teaching certificates and complete one hundred
    11  seventy-five hours of continuing  education  to  maintain  such  certif-
    12  icates.
    13    §  17.  Subdivision 2 of section 2502 of the education law, as amended
    14  by chapter 698 of the laws of 1989, is amended to read as follows:
    15    2. Each board of education  shall  consist  of  five,  seven  or  nine
    16  members,  to be known as members of the board of education.  In the city
    17  of Albany, such board shall consist of seven voting members; and in  the
    18  city  of  Rensselaer, such board shall consist of five members; subject,
    19  however, to any increase or decrease of the number of voting members  of
    20  such  board  as  provided  pursuant  to the provisions of paragraph a of
    21  subdivision four of this section.  [Members] Notwithstanding  any  other
    22  provision  of  law  to the contrary, in the city of Albany the mayor, or
    23  his designee, shall serve as an additional ex officio non-voting  member
    24  of  the board of education, provided that the provisions of subdivisions
    25  three, four, six, seven, eight and nine of this section shall not  apply
    26  to  such  ex  officio position and such position shall not be counted in
    27  determining a quorum for the transaction of business.    Voting  members
    28  of  such  board shall be elected by the qualified voters at large of the
    29  school district at annual school  elections,  under  the  provisions  of
    30  article  fifty-three  of this chapter except in the city school district
    31  of the city of Albany; provided, however, each board  of  education  may
    32  upon  its  own  motion, and shall upon a written petition, subscribed by
    33  not less than five hundred qualified voters of the district, cause to be
    34  submitted at the annual school election a proposition to  consider  each
    35  vacancy upon the board of education a separate specific office requiring
    36  a  separate  petition to nominate a candidate to each separate office in
    37  accordance with the provisions of article fifty-three of this chapter.
    38    § 18. Section 2552 of the education law, as amended by chapter 138  of
    39  the laws of 1974, is amended to read as follows:
    40    § 2552. Board  of education.  The board of education of each such city
    41  school district is hereby continued. The  educational  affairs  in  each
    42  such  city  school  district  shall  be under the general management and
    43  control of a board of education to consist of not less  than  three  and
    44  not  more  than  [nine]  eleven  members,  to  be  chosen as hereinafter
    45  provided, and to be known as members of the board of  education,  except
    46  that  the  board of education of the city school district of the city of
    47  New York shall be constituted as provided in article fifty-two-A of this
    48  chapter.  The number of members on the board of education of  each  such
    49  city school district shall continue to be as follows:
    50    a. City school district of the city of Buffalo: [nine] eleven members,
    51  two of which shall be appointed by the mayor.
    52    b.  City  school  district  of  the  city  of  Rochester: [seven] nine
    53  members, two of which shall be appointed by the mayor.
    54    c. City school district of the city of Syracuse: [seven] nine members,
    55  two of which shall be appointed by the mayor.
    56    d. City school district of the city of Yonkers: nine members.

        S. 1--B                            10

     1    § 19. Section 2553 of the education law is amended  by  adding  a  new
     2  subdivision 3-a to read as follows:
     3    3-a.  In the city school districts of the cities of Buffalo, Rochester
     4  and Syracuse, the mayors of such cities shall appoint two  residents  to
     5  the  board  of  education. Each appointee shall serve for a term of four
     6  years and may be removed by the mayor at any time during their term.
     7    § 20. Section 3020 of the education law is amended  by  adding  a  new
     8  subdivision 5 to read as follows:
     9    5.  Notwithstanding  any inconsistent provision of law, when a tenured
    10  teacher receives an evaluation from the school district which  documents
    11  pedagogical  incompetence,  the  district shall take the following steps
    12  prior to bringing charges under section three thousand twenty-a of  this
    13  article.  The  district  shall develop a ninety day plan in consultation
    14  with the teacher and his or her collective bargaining unit to  remediate
    15  the problem. If after the remedial plan is completed, the tenured teach-
    16  er's performance is still unsatisfactory as determined through an obser-
    17  vation  and  written  evaluation  conducted  following completion of the
    18  ninety day remedial plan, the district may file charges  of  pedagogical
    19  incompetence  against  the  teacher  and  use  the  expedited  procedure
    20  described in subdivision six of section three thousand twenty-a of  this
    21  article.
    22    §  21. Paragraphs (c) and (d) of subdivision 2, subparagraphs (ii) and
    23  (iii) of paragraph b and subparagraphs (ii), (v) and (vi) of paragraph c
    24  of subdivision 3 and paragraphs (a) and (b) of subdivision 4 of  section
    25  3020-a  of  the  education law, as amended by chapter 691 of the laws of
    26  1994, are amended and a new subdivision 6 is added to read as follows:
    27    (c) Within [ten] five days of receipt of the statement of charges, the
    28  employee shall notify the clerk or secretary of the employing  board  in
    29  writing  whether he or she desires a hearing on the charges and when the
    30  charges concern pedagogical incompetence or issues involving pedagogical
    31  judgment, his or her choice of either a  single  hearing  officer  or  a
    32  three member panel. All other charges shall be heard by a single hearing
    33  officer.
    34    (d)  The  unexcused  failure  of  the  employee to notify the clerk or
    35  secretary of his or her desire for a hearing within [ten] five  days  of
    36  the  receipt of charges shall be deemed a waiver of the right to a hear-
    37  ing.  Where an employee requests a hearing in the manner provided for by
    38  this section, the clerk or secretary of the board  shall,  within  three
    39  working  days of receipt of the employee's notice or request for a hear-
    40  ing, notify the commissioner of education of the need for a hearing.  If
    41  the  employee  waives  his or her right to a hearing the employing board
    42  shall proceed, within fifteen days, by a  vote  of  a  majority  of  all
    43  members  of  such  board,  to determine the case and fix the penalty, if
    44  any, to be imposed in accordance with subdivision four of this section.
    45    (ii) Not later than [ten] five days after the  date  the  commissioner
    46  mails  to  the  employing  board  and the employee the list of potential
    47  hearing officers and biographies provided to  the  commissioner  by  the
    48  association,  the  employing  board  and  the  employee, individually or
    49  through their agents  or  representatives,  shall  by  mutual  agreement
    50  select a hearing officer from said list to conduct the hearing and shall
    51  notify the commissioner of their selection.
    52    (iii)  If  the  employing  board  and the employee fail to agree on an
    53  arbitrator to serve as a hearing officer from said list  and  so  notify
    54  the  commissioner  within  [ten] five days after receiving the list from
    55  the commissioner, the commissioner  shall  request  the  association  to
    56  appoint a hearing officer from said list.

        S. 1--B                            11

     1    (ii)  The  hearing  officer  selected  to conduct a hearing under this
     2  section shall, within ten [to fifteen] days  of  agreeing  to  serve  as
     3  such,  hold  a  pre-hearing conference which shall be held in the school
     4  district or county seat of  the  county,  or  any  county,  wherein  the
     5  employing  school  board is located. The pre-hearing conference shall be
     6  limited in length to one day except that the hearing officer, in his  or
     7  her discretion, may allow one additional day for good cause shown.
     8    (v)  In  the  event  that  at the pre-hearing conference the employing
     9  board presents evidence that the [professional] teaching certificate  or
    10  license  of  the employee has been revoked and all judicial and adminis-
    11  trative remedies have been exhausted or foreclosed, the hearing  officer
    12  shall  schedule the date, time and place for an expedited hearing, which
    13  hearing shall commence not more than [seven] five days  after  the  pre-
    14  hearing  conference and which shall be limited to one day. The expedited
    15  hearing shall be held in the local school district or county seat of the
    16  county or any county, wherein the said employing board is  located.  The
    17  expedited  hearing  shall  not be postponed except upon the request of a
    18  party and then only for good cause as determined by the hearing officer.
    19  At such hearing, each party shall have equal time in  which  to  present
    20  its case.
    21    (vi)  During  the  pre-hearing  conference,  the hearing officer shall
    22  determine the reasonable amount of time necessary for a final hearing on
    23  the charge or charges and  shall  schedule  the  location,  time(s)  and
    24  date(s)  for  the  final hearing. The final hearing shall be held in the
    25  local school district or county seat of the county, or any county, wher-
    26  ein the said employing school board is located. In the  event  that  the
    27  hearing  officer  determines  that  the  nature of the case requires the
    28  final hearing to last more than one day, the days that are scheduled for
    29  the final hearing shall be consecutive. The day or  days  scheduled  for
    30  the  final  hearing  shall not be postponed except upon the request of a
    31  party and then only for good cause shown as determined  by  the  hearing
    32  officer.  In  all  cases,  the final hearing shall be completed no later
    33  than [sixty] thirty days after the  pre-hearing  conference  unless  the
    34  hearing  officer  determines  that extraordinary circumstances warrant a
    35  limited extension.
    36    (a) The hearing officer shall render a written decision within  [thir-
    37  ty] fifteen days of the last day of the final hearing, or in the case of
    38  an  expedited  hearing  within [ten] two days of such expedited hearing,
    39  and shall forthwith forward a copy thereof to the commissioner of educa-
    40  tion who shall immediately forward copies of the decision to the employ-
    41  ee and to the clerk or secretary of the  employing  board.  The  written
    42  decision  shall  include  the hearing officer's findings of fact on each
    43  charge, his or her conclusions with regard to each charge based on  said
    44  findings  and shall state what penalty or other action, if any, shall be
    45  taken by the employing board. At the request of the employee, in  deter-
    46  mining what, if any, penalty or other action shall be imposed, the hear-
    47  ing  officer shall consider the extent to which the employing board made
    48  efforts towards correcting the behavior of the employee  which  resulted
    49  in  charges being brought under this section through means including but
    50  not limited to: remediation, peer intervention or an employee assistance
    51  plan. In those cases where a penalty is imposed, such penalty may  be  a
    52  written  reprimand,  a fine, suspension for a fixed time without pay, or
    53  dismissal. In addition to or in lieu of  the  aforementioned  penalties,
    54  the  hearing officer, where he or she deems appropriate, may impose upon
    55  the employee remedial action including but  not  limited  to  leaves  of
    56  absence  with  or  without  pay,  continuing  education  and/or study, a

        S. 1--B                            12

     1  requirement that the employee seek counseling or  medical  treatment  or
     2  that the employee engage in any other remedial or combination of remedi-
     3  al actions.
     4    (b)  Within  [fifteen]  ten  days  of receipt of the hearing officer's
     5  decision the employing board shall  implement  the  decision.    If  the
     6  employee is acquitted he or she shall be restored to his or her position
     7  with  full  pay for any period of suspension without pay and the charges
     8  expunged from the employment record. If an employee who was convicted of
     9  a felony crime specified in paragraph (b) of  subdivision  two  of  this
    10  section,  has  said conviction reversed, the employee, upon application,
    11  shall be entitled to have his pay and other emoluments restored, for the
    12  period from the date of his suspension to the date of the decision.
    13    6. Alternative procedure for pedagogical incompetence.   Notwithstand-
    14  ing any inconsistent provision of law, when a tenured teacher is charged
    15  with   pedagogical   incompetence  in  accordance  with  the  procedures
    16  described in subdivision four of section three thousand twenty  of  this
    17  article,  the following alternative hearing procedure shall be followed.
    18  Within thirty days of the unsatisfactory observation and written  evalu-
    19  ation  following  the  completion  of  the ninety day remedial plan, the
    20  district shall notify the tenured teacher of the charges  based  on  the
    21  evaluation.  At the same time the district shall request a list of hear-
    22  ing officers from the commissioner in accordance with subdivision  three
    23  of  this  section. Such list shall contain names of hearing officers who
    24  would be available to complete the hearing and issue a  decision  within
    25  sixty  days  of the filing of charges. Within five days of the notifica-
    26  tion of charges the teacher shall notify the district whether he or  she
    27  is  requesting a hearing. If the teacher requests a hearing, the teacher
    28  and school district shall agree on  a  hearing  officer  from  the  list
    29  provided by the commissioner within five days of receipt of the list. If
    30  a  hearing  officer  is not agreed to within five days, the commissioner
    31  shall select a hearing officer from the  list.  The  commissioner  shall
    32  adopt  regulations  to  ensure  any hearing conducted in accordance with
    33  this subdivision is completed within ninety days of  the  unsatisfactory
    34  observation and written evaluation conducted following completion of the
    35  remedial plan.
    36    §  22.  Section  305  of  the education law is amended by adding a new
    37  subdivision 25-a to read as follows:
    38    25-a. a.  The commissioner shall conduct  an  annual  examination  and
    39  evaluation of the financial condition of each school district and BOCES.
    40  Based  on  this  annual review, in conjunction with the comptroller, the
    41  commissioner shall conduct fiscal audits of identified school  districts
    42  and BOCES determined to be in fiscal distress.
    43    b.  In conducting the audit, the commissioner shall gain access to all
    44  backup financial, budgeting and accounting documentation and other  data
    45  for  the  current school year or any prior year that may be necessary to
    46  verify, confirm and reconstruct all of the transactions  engaged  in  by
    47  affected school districts or BOCES, including records of any state agen-
    48  cy,  board  of  cooperative  educational services, city or other munici-
    49  pality, public authority or any person or entity  contracting  with  the
    50  district or BOCES concerning such transactions;
    51    c.  The  audit  shall  assess  the  affected school district or BOCES'
    52  current financial accounting practices to ensure that they are  consist-
    53  ent   with   established  standards,  that  they  provide  for  adequate
    54  protections against theft,  embezzlement  and  other  abuses,  and  that
    55  adequate  systems  of internal controls are in place, including a system

        S. 1--B                            13

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

        S. 1--B                            14

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

        S. 1--B                            15

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

        S. 1--B                            16

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

        S. 1--B                            17

     1  include,  at a minimum, any information on the school district regarding
     2  pupil performance and expenditure per pupil required to be  included  in
     3  the  annual  report  by  the regents to the governor and the legislature
     4  pursuant to section two hundred fifteen-a of this chapter, the amount of
     5  unexpended  surplus  funds;  and  any  other information required by the
     6  commissioner. For purposes of this subdivision, the term "surplus funds"
     7  shall mean any and all operating funds in excess of two percent  of  the
     8  current  school  year  budget,  regardless  of the account in which such
     9  funds are held.  School  districts  (i)  identified  as  having  fifteen
    10  percent  or  more  of their students in special education, or (ii) which
    11  have fifty percent or  more  of  their  students  with  disabilities  in
    12  special  education  programs  or  services  sixty percent or more of the
    13  school day in a general education building, or (iii)  which  have  eight
    14  percent or more of their students with disabilities in special education
    15  programs  in public or private separate educational settings shall indi-
    16  cate on their school district report card their  respective  percentages
    17  as  defined in this paragraph and paragraphs (i) and (ii) of this subdi-
    18  vision as compared to the statewide average.
    19    3-a. The program component, capital component and  the  administrative
    20  component  shall be presented to the qualified voters in a single propo-
    21  sition. There shall be no  separate  propositions  for  any  expenditure
    22  required  to  be  included  in the budget under subdivision four of this
    23  section.
    24    § 29. The education law is amended by adding a new section 141 to read
    25  as follows:
    26    § 141. Disclosure of violations. The commissioner shall  require  that
    27  upon  the  finding  that a school district has violated any provision of
    28  this chapter or rules and regulations of  the  commissioner,  notice  of
    29  such  violation shall be publicized by transmitting a description of the
    30  commissioner's findings to the voters in a separate mailing. Such  sepa-
    31  rate  mailing  shall  be mailed before the annual budget hearing but not
    32  more than twenty-five days prior to such hearing. Further, notice of and
    33  a description of each violation shall be read into  the  record  at  the
    34  next succeeding annual budget hearing.
    35    §  30.  The  education law is amended by adding a new section 319-a to
    36  read as follows:
    37    § 319-a. Protection of school employees who report information to  the
    38  office  of  educational  accountability. Any school employee who in good
    39  faith, believes, or has reasonable cause to believe, that the actions or
    40  fiscal practices of a school district, or other local  education  agency
    41  violates  any  local,  state,  federal  law  or rule and regulation, and
    42  reports such information to the office of educational accountability, or
    43  to law enforcement authorities,  shall  have  immunity  from  any  civil
    44  liability  that  may arise from the making of such report, and no school
    45  district, or employee thereof,  or  other  local  education  agency,  or
    46  employee  thereof  shall  take,  request,  or cause a retaliatory action
    47  against any such employee who makes such report.
    48    § 31. The tax law is amended by adding a new section 1621 to  read  as
    49  follows:
    50    §  1621.  Video  lottery  franchise  gaming. a. The division is hereby
    51  authorized to license, pursuant to rules and regulations to  be  promul-
    52  gated  by  the  division,  the  operation and conduct of a lottery to be
    53  known as video lottery franchise gaming to be conducted at up  to  eight
    54  venues   throughout  the  state,  each  requiring  a  separate  license.
    55  Licenses shall be awarded by the division on  a  competitive  basis  and
    56  each  proposed  video lottery franchise location shall be subject to the

        S. 1--B                            18

     1  approval of the division.  Any entity, including but not limited to  off
     2  track  betting  corporations,  which demonstrates to the satisfaction of
     3  the division that it possesses the qualifications and expertise to oper-
     4  ate  video  lottery  franchise gaming shall be eligible to competitively
     5  bid for one or more available licenses.  Provided, however, that  except
     6  as  otherwise  authorized  in  this section, licenses may not be granted
     7  pursuant to this section for  locations  within  fifteen  miles  of  any
     8  facility  licensed  pursuant  to  section sixteen hundred seventeen-a of
     9  this article; provided, however, that such restriction may be waived  by
    10  the division if any racetrack authorized to conduct video lottery gaming
    11  pursuant  to section sixteen hundred seventeen-a of this article has not
    12  begun or is not scheduled to begin operating video lottery gaming on  or
    13  before April first, two thousand five.  Notwithstanding any inconsistent
    14  provision  of  law,  video  lottery  franchise  gaming  at each approved
    15  location pursuant to this section shall be deemed an  approved  activity
    16  at  such location under the relevant city, county, town, or village land
    17  use or zoning ordinances, rules  or  regulations.  No  entity  operating
    18  video  lottery  franchise gaming pursuant to this section may house such
    19  gaming activity in a structure deemed or approved  by  the  division  as
    20  "temporary" for longer than eighteen months.
    21    b.  The  division shall promulgate rules and regulations governing all
    22  aspects of the operation and conduct of video lottery franchise  gaming,
    23  including  but  not limited to, the criteria for awarding such licenses,
    24  establishing license fees, approving locations, setting agent  fees  and
    25  establishing  hours  of  operation,  subject to the requirements of this
    26  section.   Criteria for awarding licenses  shall  include,  but  not  be
    27  limited to, maximizing financial support for education, timely implemen-
    28  tation  of  video  lottery franchise gaming, location and quality of the
    29  facility and expertise of the applicant.  Such rules and regulations may
    30  be adopted on an emergency basis pursuant to section two hundred two  of
    31  the state administrative procedure act.
    32    c.  In  consideration  of  its  licensure  and  participation in video
    33  lottery franchise gaming, each licensee shall pay a one-time license fee
    34  to be established by the division for each license issued,  to  be  paid
    35  into the state treasury, to the credit of the state lottery fund created
    36  by section ninety-two-c of the state finance law.
    37    d.  The  specifications  for  video  lottery franchise gaming shall be
    38  designed in such a manner as to pay prizes that  average  no  less  than
    39  ninety percent of sales.
    40    e. Notwithstanding section one hundred twenty-one of the state finance
    41  law,  on  or  before the twentieth day of each month, the division shall
    42  pay into the state treasury, to the credit of  the  state  lottery  fund
    43  created by section ninety-two-c of the state finance law, the balance of
    44  the  total  revenue after payout for prizes, less an amount equal to ten
    45  percent of such revenue after payout of prizes to  be  retained  by  the
    46  division  for  operation,  administration  and procurement purposes; and
    47  less a lottery agent fee to be paid to each licensee at a  rate,  to  be
    48  established  by such rules and regulations, not to exceed twenty percent
    49  of total revenue wagered after payout of prizes at such  agent  facility
    50  which  will provide the maximum lottery support for education while also
    51  ensuring the effective implementation of this section through reasonable
    52  reimbursements and compensation to the licensees  for  participation  in
    53  video lottery franchise gaming.
    54    f.  The  director  shall  be  authorized to enter into contracts as an
    55  agent of the state with private entities and non-profit  racing  associ-
    56  ations  licensed  pursuant  to  this section and section sixteen hundred

        S. 1--B                            19

     1  seventeen-a of this article to encourage  the  timely  participation  in
     2  video  lottery  gaming.  Such  contracts may include a commitment by the
     3  state that each video lottery gaming facility shall have  the  exclusive
     4  right  to operate such facility at its licensed location consistent with
     5  the geographical restrictions contained in subdivision a of this section
     6  for a term of ten years. Notwithstanding any other provision of  law  to
     7  the  contrary,  an agreement by a video lottery gaming facility operator
     8  to build and operate a licensed video lottery gaming facility  shall  be
     9  deemed  good  and  valid consideration for a commitment by the state for
    10  such exclusive right to operate such facility.
    11    g. Notwithstanding any law to the  contrary,  the  division  shall  be
    12  authorized  to  amend,  upon  negotiated  agreement,  competitively  bid
    13  contracts in force and valid on the effective date of  this  section  in
    14  connection  with  video  lottery  gaming  authorized pursuant to section
    15  sixteen hundred seventeen-a of this article to allow  those  contractors
    16  to  provide  goods  and  services in furtherance of this section, and to
    17  extend the terms of such contracts.
    18    § 32. Subdivision b of section 1612 of the  tax  law,  as  amended  by
    19  section  3  of  part  W of chapter 63 of the laws of 2003, is amended to
    20  read as follows:
    21    b. Notwithstanding section one hundred twenty-one of the state finance
    22  law, on or before the twentieth day of each month, the  division  shall:
    23  (i) pay into the state treasury, to the credit of the state lottery fund
    24  created  by section ninety-two-c of the state finance law, not less than
    25  forty-five percent of the total amount for which tickets have been  sold
    26  for  games  defined  in  paragraph four of subdivision a of this section
    27  during the preceding month, not less than  thirty-five  percent  of  the
    28  total amount for which tickets have been sold for games defined in para-
    29  graph three of subdivision a of this section during the preceding month,
    30  not  less than twenty percent of the total amount for which tickets have
    31  been sold for games defined in paragraph two of subdivision  a  of  this
    32  section during the preceding month, provided however that for games with
    33  a  prize  payout  of  seventy-five percent of the total amount for which
    34  tickets have been sold, the division shall pay not less than ten percent
    35  of sales into the state treasury and not less than  twenty-five  percent
    36  of  the  total amount for which tickets have been sold for games defined
    37  in paragraph one of subdivision a of this section during  the  preceding
    38  month; and (ii) pay into the state treasury, to the credit of a separate
    39  account  of the state lottery fund to be known as the sound basic educa-
    40  tion account, which shall be kept separate  and  apart  from  all  other
    41  state  lottery  funds, the balance of the total revenue after payout for
    42  prizes for games [known as "video lottery gaming,"] authorized  pursuant
    43  to section sixteen hundred seventeen-a of this article, less ten percent
    44  of  the  total revenue wagered after payout for prizes to be retained by
    45  the division for operation, administration,  and  procurement  purposes;
    46  and  less  a  vendor's fee to be paid to the track operator at a rate of
    47  twenty-nine percent of the total revenue wagered  at  the  vendor  track
    48  after  payout for prizes pursuant to this chapter, which amount shall be
    49  paid to the operator of the racetrack for serving  as  a  lottery  agent
    50  under  this  pilot  program.  In establishing the lottery agent fee, the
    51  division shall ensure the maximum lottery support  for  education  while
    52  also  ensuring  the  effective implementation of section sixteen hundred
    53  seventeen-a  of  this  article  through  the  provision  of   reasonable
    54  reimbursements  and  compensation  to vendor tracks for participation in
    55  such pilot program. Within  twenty  days  after  any  award  of  lottery
    56  prizes, the division shall pay into the state treasury, to the credit of

        S. 1--B                            20

     1  the state lottery fund, the balance of all moneys received from the sale
     2  of all tickets for the lottery in which such prizes were awarded remain-
     3  ing  after  provision for the payment of prizes as herein provided.  Any
     4  revenues  derived  from the sale of advertising on lottery tickets shall
     5  be deposited in the state lottery fund.
     6    § 33. Section 3601 of the education law, as amended by section  30  of
     7  part  A  of chapter 436 of the laws of 1997 and the opening paragraph as
     8  amended by section 11 of part C of chapter 58 of the laws  of  1998,  is
     9  amended to read as follows:
    10    §  3601.  When  apportioned  and how applied.   1. The amount annually
    11  appropriated by the legislature for general support for public  schools,
    12  net  of  disallowances,  refunds,  reimbursements  and credits, shall be
    13  apportioned by the commissioner each year prior  to  the  dates  of  the
    14  respective  final payments provided by law and all moneys so apportioned
    15  shall be applied exclusively  to  school  purposes  authorized  by  law.
    16  General state aid claims, on forms prescribed by the commissioner, shall
    17  be  submitted  to  the  commissioner  by September second of each school
    18  year, except that the audit report  required  by  subdivision  three  of
    19  section  twenty-one hundred sixteen-a of this chapter shall be submitted
    20  to the commissioner by October first following the close of  the  school
    21  year  audited  for all districts other than the city school districts of
    22  the cities of Buffalo, Rochester, Syracuse, Yonkers and New York and  by
    23  January  first following   the close of the school year audited for such
    24  city school districts, and except that aid claims on forms prescribed by
    25  the commissioner for aids apportioned pursuant  to  subdivision  six  or
    26  fourteen  of  section thirty-six hundred two of this article for current
    27  year approved expenditures for debt service for school building purposes
    28  related to bond anticipation notes  and  for  bonds  and  capital  notes
    29  issued during the current year shall be submitted to the commissioner by
    30  March  first  of  the  current  year.  No  aid shall be paid to a school
    31  district or board of  cooperative  educational  services  prior  to  the
    32  submission of claims as required by the commissioner, except that no aid
    33  certified  as  payable  to  a school district by the state board of real
    34  property services pursuant  to  paragraph  c  of  subdivision  three  of
    35  section  thirteen  hundred  six-a  of the real property tax law shall be
    36  withheld due to the failure of the school  district  to  submit  general
    37  state  aid  claims required by the commissioner, and except that no aids
    38  shall be withheld due to the failure of a school district to submit  the
    39  audit report required by subdivision three of section twenty-one hundred
    40  sixteen-a of this chapter until the thirtieth day following the due date
    41  specified  in  this  section  for  such report, and provided that no aid
    42  shall be paid to a school district prior to  September  first  following
    43  the  end of the current school year for aid claims submitted after March
    44  first of the current year for aids apportioned pursuant  to  subdivision
    45  six  or  fourteen  of section thirty-six hundred two of this article for
    46  current year approved expenditures for debt service for school  building
    47  purposes  related  to  bond anticipation notes and for bonds and capital
    48  notes issued during the current year.
    49    2. The amount annually appropriated by  the  legislature  for  general
    50  support  for  public  schools, net of disallowances, refunds, reimburse-
    51  ments and credits, for the two thousand eight--two thousand nine  school
    52  year  and thereafter shall not be less than nineteen billion six hundred
    53  ninety million dollars ($19,690,000,000), subject  to  an  appropriation
    54  therefor.  Of  that  amount, an amount not less than two billion dollars
    55  ($2,000,000,000) shall be used in support of sound basic education aid.

        S. 1--B                            21

     1    3. Any school district located in a city  with  a  population  of  one
     2  million  or more shall document to the commissioner, in such form as the
     3  commissioner shall require, that it has incurred expenditures funded  by
     4  city funds which exceed the city amount required pursuant to subdivision
     5  five-a  of section twenty-five hundred seventy-six of this chapter by an
     6  amount equal to the apportionment paid  to  such  district  pursuant  to
     7  sound  basic  education  aid in any and all years such district receives
     8  such aid. Such additional amount shall be utilized in  support  of  such
     9  district's implementation of school improvement plans designed to ensure
    10  that  each  poorly performing school operated by the school district has
    11  adequate educational and fiscal resources to provide an opportunity  for
    12  a  sound  basic  education.  If such school district spends less in city
    13  funds than the additional amount calculated pursuant to this subdivision
    14  in support of implementation of such school improvement plans, it  shall
    15  have  its  apportionment  pursuant  to subdivision twelve or twelve-b of
    16  section thirty-six hundred two  of  this  part,  as  determined  by  the
    17  commissioner,  reduced  in  an  amount  equal  to such deficiency in the
    18  current year or the succeeding school year.
    19    § 34. The education law is amended by adding a new section  3004-d  to
    20  read as follows:
    21    §  3004-d.  National board for professional teaching standards certif-
    22  ication achievement grant program. 1. Notwithstanding  any  inconsistent
    23  provision  of  law,  the commissioner shall establish the national board
    24  for professional  teaching  standards  certification  achievement  grant
    25  program, as that term is described in subdivision three of this section,
    26  where  such  eligible  teacher  has  been granted national board certif-
    27  ication from the national board for professional teacher standards prior
    28  to July first, two thousand ten.
    29    2. As used in this section, "eligible teacher" shall mean a  New  York
    30  state public school teacher who:
    31    (a) is currently teaching in New York state;
    32    (b) has graduated from an accredited college or university; and
    33    (c) holds a valid New York state teaching certificate.
    34    3.  Under  the  provisions  of  this section and subject to the filing
    35  requirement described in subdivision four of this section, a grant in an
    36  amount of three thousand four hundred dollars shall  be  made  available
    37  from  the  national  board  for  professional teaching standards certif-
    38  ication achievement grant program to each eligible teacher who has  been
    39  granted  certification  by  the national board for professional teaching
    40  standards. Such sum shall be payable to such teachers for  each  of  the
    41  remaining  years  of  their current national board certification, not to
    42  exceed five years.
    43    4. The commissioner shall be responsible for  promulgating  any  regu-
    44  lations  necessary to effectuate the provisions of this section, includ-
    45  ing:
    46    (a) establishing within the department an application form and  filing
    47  deadline  requirements  to be utilized by eligible teachers applying for
    48  the national board for  professional  teaching  standards  certification
    49  achievement grant program;
    50    (b) establishing a mechanism for processing and approving applications
    51  within the department;
    52    (c)  establishing  a  mechanism  to  allocate grant awards to approved
    53  eligible teachers.
    54    § 35. Section 3612 of the education law is amended  by  adding  a  new
    55  subdivision 6-a to read as follows:

        S. 1--B                            22

     1    6-a. New York state teacher of the year award. a.  Notwithstanding any
     2  inconsistent  provision of law, the commissioner shall establish the New
     3  York state teacher of the year award fund, to be used by the  department
     4  to provide a grant to the designated New York state teacher of the year.
     5  A  one-time  grant  in  an  amount of ten thousand dollars shall be made
     6  available from the New York state teacher of the year award fund to each
     7  teacher who has been designated New York state teacher of  the  year  by
     8  the board of regents and is currently employed in a teaching capacity in
     9  New York state.
    10    b.  The  commissioner  shall be responsible for promulgating any regu-
    11  lations necessary to effectuate the provisions of this subdivision.
    12    § 36. Section 2799-tt of the public authorities law, as renumbered  by
    13  chapter 297 of the laws of 2001, is renumbered section 2799-uu and a new
    14  section 2799-tt is added to read as follows:
    15    §  2799-tt.  Additional  bonds  for  an emergency school capital plan.
    16  Notwithstanding any provision of this title or  any  other  law  to  the
    17  contrary,  the  authority  is hereby authorized to issue bonds, notes or
    18  other obligations in addition to those authorized by section twenty-sev-
    19  en hundred ninety-nine-gg or section twenty-seven hundred ninety-nine-ss
    20  of this title in an amount  outstanding  of  up  to  two  billion  eight
    21  hundred  million  dollars to pay all costs in the city's budget (whether
    22  or not included or includable in the city's capital plan) which are,  in
    23  the  judgment  of  the  mayor, related to or arising from the distressed
    24  needs pertaining to the educational facilities  of  the  New  York  city
    25  department  of  education.  In addition to or in lieu of any revenues or
    26  notes or other money that may be paid or payable to the authority,  such
    27  bonds, notes or other obligations may be secured by and payable from the
    28  proceeds  of other bonds, notes or other obligations of the authority or
    29  federal aid related to or arising from a determination  that  such  city
    30  educational  facilities  are  in  a  distressed  state. In addition, the
    31  authority may issue bonds, notes or other  obligations  without  limita-
    32  tions  as  to  amount,  secured  solely  by and payable solely from such
    33  federal aid. The city, acting through the mayor, is hereby authorized to
    34  assign the right to receive any such federal aid to the  authority  and,
    35  after  such assignment, the right to receive such aid shall be the prop-
    36  erty of the authority. Bonds issued pursuant to this section shall  have
    37  a maximum maturity of up to thirty years.
    38    § 37. This act shall take effect immediately.