N.Y. Public Authorities Law § 6-a: Power to suspend local authority board members and executive staff

§ 6-a. Power to suspend local authority board members and executive

staff. 1. The authorities budget office shall have the authority,

subject to subdivision two of this section, to suspend one or more

members of a local authority board of directors, or the chief executive

officer or equivalent position of a local authority for a period not to

exceed ninety days when such individual or individuals knowingly fails

or neglects to submit any report required by section twenty-eight

hundred of this chapter within thirty-six months of its due date. The

authorities budget office is authorized to terminate such a suspension

if the board member or chief executive officer demonstrates that he or

she has remedied their non-compliance. For the purposes of this section,

the "suspension" of an individual shall mean the temporary removal of

the rights, responsibilities, powers and duties of a person who is an

appointed board member of a local authority or the individual who serves

as chief executive officer through appointment or contract. Should the

authorities budget office suspend the full board of directors or a

majority of current board members the term "suspension" shall mean the

board of directors is prohibited from taking actions, votes, or adopting

resolutions, that bind the board to future agreements, contracts,

financial commitments, indebtedness, or other actions, other than

actions necessary to resolve the noncompliance or satisfy existing legal

or administrative obligations.

2. (a) Pursuant to policies and procedures developed by the

authorities budget office and made available on its website, when the

authorities budget office has reason to believe that one or more board

members of a local authority has knowingly failed or neglected to submit

any report required by section twenty-eight hundred of this chapter

within thirty-six months of its due date, the authorities budget office

shall provide at least thirty days' notice of its intent to initiate

suspension proceedings to the chairperson of the local authority, to the

individual or individuals responsible for appointing such board members,

and to each such board member. If the authorities budget office has

reason to believe that the chief executive officer of a local authority

has knowingly failed or neglected to submit any report required by

section twenty-eight hundred of this chapter within thirty-six months of

its due date, the authorities budget office shall provide at least

thirty days' notice of its intent to initiate suspension proceedings to

the chairperson of the local authority and to the chief executive

officer. Such notice shall include, but shall not be limited to (i) the

date and a brief description of the facts and nature of each

non-compliance for which such suspension is proposed; (ii) the number of

days that the authorities budget office proposes to suspend such board

member or chief executive officer; (iii) the option to submit a formal

response to the authorities budget office which demonstrates why such

board member or chief executive officer should not be suspended; and

(iv) if applicable, a period of time in which such local authority or

board member or chief executive officer may remedy the non-compliance.

(b) If, after the expiration of the deadline set forth in the notice

of intent pursuant to subparagraph (iv) of paragraph (a) of this

subdivision, the board member or members or chief executive officer,

whichever is applicable, has not responded to the notice or has not

remedied the non-compliance to the satisfaction of the authorities

budget office, the authorities budget office shall issue to the

non-compliant board member or members or chief executive officer a

notice of suspension which shall include: (i) the number of days of

suspension; and (ii) the date that such suspension shall commence, which

date shall be at least one hundred eighty days from the date of the

issuance of the notice of suspension.

3. (a) Whenever the authorities budget office has suspended one or

more board members of a local authority, the individual or individuals

who appointed those board members may act to reinstate a suspended board

member. If the appointing authority is a legislative body or a member of

the legislative body, any action to reinstate a suspended board member

shall occur in a public meeting of such body and following an

opportunity for the public to comment. Such action shall be deemed valid

upon passage of a written resolution of reinstatement by a majority and

recorded vote of the legislative body. Such resolution shall describe

the facts and circumstances by which the legislative body has reached

this determination. If the appointing authority is the chief executive

official of the municipality for whose benefit the local authority was

created, any action to reinstate a suspended board member shall be

through an official act of the chief executive official. Such act shall

be recorded in writing and shall describe the facts and circumstances by

which the chief executive official reached this determination.

(b) Whenever the authorities budget office has suspended the chief

executive officer of a local authority, the chairperson of such local

authority may initiate action to reinstate the suspended chief executive

officer. Any action to reinstate a suspended chief executive officer

shall occur in a public meeting of the board of directors and following

an opportunity for the public to comment. Such action shall be deemed

valid upon passage of a written resolution of reinstatement by a

majority and recorded vote of the current board of directors. Such

resolution shall describe the facts and circumstances by which the board

of directors reached this determination.

(c) For the purposes of this section, "reinstatement" shall mean the

restoration of the rights, responsibilities, powers and duties of a

board member or chief executive officer of a local authority.