Section 3669. Control period

1. The authority shall impose a control period
  upon  its determination at any time that any of the following events has
  occurred or that there is a substantial likelihood and imminence of such
  occurrence: (a) the county shall have failed to pay the principal of  or
  interest  on  any  of  its  bonds  or notes when due or payable, (b) the
  county shall have incurred  a  major  operating  funds  deficit  of  one
  percent  or  more  in  the aggregate results of operations of such funds
  during its fiscal  year  assuming  all  revenues  and  expenditures  are
  reported  in  accordance  with generally accepted accounting principles,
  subject to the provisions of this  title,  (c)  the  county  shall  have
  otherwise  violated  any  provision  of  this  title  and such violation
  substantially impairs the marketability of the county's bonds or  notes,
  (d) the chief fiscal officer's certification at any time, at the request
  of  the  authority  or  on  the chief fiscal officer's initiative, which
  certification  shall  be  made  from  time  to  time  as   promptly   as
  circumstances  warrant  and reported to the authority, that on the basis
  of facts  existing  at  such  time  such  officer  could  not  make  the
  certification  described  by  paragraph  (b)  of this subdivision in the
  definition of interim  finance  period  in  section  thirty-six  hundred
  fifty-one of this title, or (e) the authority makes the finding required
  under  paragraph  (g)  of  subdivision two of section thirty-six hundred
  sixty-seven of this  title.  The  authority  shall  terminate  any  such
  control  period  when  it  determines  that none of the conditions which
  would permit the authority to  impose  a  control  period  exist.  After
  termination  of  a  control period the authority shall annually consider
  paragraphs (a) through (e) of this subdivision and determine whether, in
  its judgment, any of  the  events  described  in  such  paragraphs  have
  occurred  and  the  authority shall publish each such determination. Any
  certification made by the chief fiscal officer hereunder shall be  based
  on  such officers' written determination which shall take into account a
  report and  opinion  of  an  independent  expert  in  the  marketing  of
  municipal  securities selected by the authority, and the opinion of such
  expert and any other information taken into account shall be made public
  when delivered  to  the  authority.  Notwithstanding  any  part  of  the
  foregoing to the contrary, in no event shall any control period continue
  beyond  the later of (i) January first, two thousand thirty, or (ii) the
  date when all  bonds  of  the  authority  are  refunded,  discharged  or
  otherwise defeased.
    2.  In  carrying  out  the  purposes  of this title during any control
  period:
    (a) The authority shall (i) consult with the county  and  the  covered
  organizations  in  the preparation of the financial plan, and certify to
  the county the revenue estimates approved therein,  (ii)  prescribe  the
  form  of  the  financial plan and the supporting information required in
  connection therewith, (iii) exercise the rights of approval, disapproval
  and modification with respect to the financial plan, including  but  not
  limited  to  the  revenue  estimates  contained therein, and (iv) in the
  event  the  authority  has  made  the  finding  required  under  section
  thirty-six  hundred  sixty-seven  of this title, formulate and adopt its
  modifications to  the  financial  plan,  such  modifications  to  become
  effective on their adoption by the authority.
    (b)  The authority shall, from time to time and to the extent it deems
  necessary or desirable in order  to  accomplish  the  purposes  of  this
  title,   (i)   review   the   operations,   management,  efficiency  and
  productivity of such county operations and of such covered organizations
  or portions thereof as the authority may  determine,  and  make  reports
  thereon;  (ii) audit compliance with the financial plan in such areas as
  the authority may determine; (iii)  recommend  to  the  county  and  the

  covered  organizations  such  measures  relating  to  their  operations,
  management, efficiency and  productivity  as  it  deems  appropriate  to
  reduce  costs and improve services so as to advance the purposes of this
  title;  and (iv) obtain information on the financial condition and needs
  of the county  and  the  covered  organizations.  Nothing  herein  shall
  diminish  the  powers of the state comptroller otherwise provided by law
  and the authority may request the assistance of the state comptroller in
  the performance of the above functions.
    (c) The authority shall (i) receive from the county  and  the  covered
  organizations and from the state comptroller, and review, such financial
  statements   and   projections,  budgetary  data  and  information,  and
  management reports and materials as the  authority  deems  necessary  or
  desirable  to  accomplish  the purposes of this title, and (ii) inspect,
  copy and audit such books and records of  the  county  and  the  covered
  organizations   as   the  authority  deems  necessary  or  desirable  to
  accomplish the purposes of this title.
    (d)  All  contracts  entered  into  by  the  county  or  any   covered
  organization  during  any  control  period  must  be consistent with the
  provisions of this title and must comply with the  requirements  of  the
  financial  plan  as  approved  by  the  authority.  With  respect to all
  contracts or other obligations to be entered into by the county  or  any
  covered  organization during any control period requiring the payment of
  funds  or  the  incurring  of  costs  by  the  county  or  any   covered
  organizations:
    (i)  Within twenty days from the commencement of a control period, the
  county executive shall present  to  the  authority  proposed  guidelines
  respecting  the  categories and types of contracts and other obligations
  required to be reviewed by the authority pursuant to  this  subdivision.
  Any  such  guidelines  may  provide a different standard for review with
  respect to contracts of any covered organization as the authority  shall
  determine. Within thirty days from the commencement of a control period,
  the  authority  shall  approve  or  modify  and  approve  such  proposed
  guidelines or promulgate  its  own  in  the  event  that  such  proposed
  guidelines  are  not  submitted to it within the twenty days as provided
  for herein. Such guidelines may thereafter be modified by the  authority
  from  time  to  time  on not less than thirty days' notice to the county
  executive and the  county  executive  may  from  time  to  time  propose
  modifications to the authority. Unless expressly disapproved or modified
  by  the  authority  within  thirty  days  (or  such additional time, not
  exceeding thirty days, as the authority shall have notified  the  county
  or  covered  organization  that  it  requires to complete its review and
  analysis) from the date of submission by the county executive, any  such
  proposed  guidelines  or  modifications  shall be deemed approved by the
  authority;
    (ii) Prior to entering into any contract or other  obligation  subject
  to  review  of  the  authority  under  its guidelines, the county or any
  covered organization shall submit a  copy  of  such  contract  or  other
  obligation  to the authority accompanied by an analysis of the projected
  costs of such  contract  or  other  obligation  and  certification  that
  performance  thereof  will be in accordance with the financial plan, all
  in such form and with such additional information as the  authority  may
  prescribe.  The  authority  shall  promptly  review  the  terms  of such
  contract or other obligation and the supporting information in order  to
  determine compliance with the financial plan;
    (iii)  The authority shall, by order, disapprove any contract or other
  obligation  reviewed  by  it  only  after  adoption  of   a   resolution
  determining  that,  in its judgment, the performance of such contract or
  other obligation would be inconsistent with the financial plan, and upon

  such order the county or covered organization shall not enter into  such
  contract or other obligation; and
    (iv)  If  the  authority  approves the terms of a reviewed contract or
  other obligation, the county or covered organization may enter into such
  contract or other obligation upon the terms submitted to the  authority.
  Failure  of  the  authority to notify the county or covered organization
  within thirty days (or such additional time, not exceeding thirty  days,
  as  the authority shall have notified the county or covered organization
  that it requires to complete its review and analysis)  after  submission
  to  it  of  a  contract  or other obligation that such contract or other
  obligation has been disapproved shall be deemed to constitute  authority
  approval thereof.
    (e)  The  authority  shall review the terms of each proposed long-term
  and short-term borrowing by the county and any covered  organization  to
  be  effected  during  any control period, and no such borrowing shall be
  made during any control period unless it is approved by  the  authority.
  Neither the county nor any covered organization shall be prohibited from
  issuing bonds or notes to pay outstanding bonds or notes.
    (f)  The  authority  shall  issue,  to the appropriate official of the
  county and each covered organization, such orders as it deems  necessary
  to accomplish the purposes of this title, including, but not limited to,
  timely  and  satisfactory  implementation of an approved financial plan.
  Any order so issued shall be binding upon the official to  whom  it  was
  issued  and failure to comply with such order shall subject the official
  to the penalties described in subdivision four of this section.
    (g) The authority is authorized to and shall withhold any transitional
  state aid and not pay such moneys  to  the  county  during  any  control
  period.
    3.  Authorization for wage freeze. (a) During a control period, upon a
  finding by the authority that a wage freeze is essential to the adoption
  or maintenance of a county  budget  or  a  financial  plan  that  is  in
  compliance  with  this  title,  the  authority,  after  enactment  of  a
  resolution so finding, may declare a fiscal crisis. Upon making  such  a
  declaration,  the  authority  shall  be  empowered  to  order  that  all
  increases in salary or wages of employees of the county and employees of
  covered organizations which will take effect after the date of the order
  pursuant to collective bargaining agreements, other analogous  contracts
  or  interest  arbitration  awards, now in existence or hereafter entered
  into, requiring such salary increases as  of  any  date  thereafter  are
  suspended.  Such  order may also provide that all increased payments for
  holiday  and  vacation  differentials,   shift   differentials,   salary
  adjustments  according  to plan and step-ups or increments for employees
  of the county and employees of covered  organizations  which  will  take
  effect  after  the  date  of the order pursuant to collective bargaining
  agreements, other analogous contracts  or  interest  arbitration  awards
  requiring  such increased payments as of any date thereafter are, in the
  same manner, suspended. For the purposes of computing the  pension  base
  of retirement allowances, any suspended salary or wage increases and any
  suspended other payments shall not be considered as part of compensation
  or  final  compensation  or  of  annual  salary  earned or earnable. The
  suspensions authorized hereunder shall continue until one year after the
  date of the order and,  to  the  extent  of  any  determination  of  the
  authority  that  a continuation of such suspensions, to a date specified
  by the authority, is necessary in order to achieve the objectives of the
  financial  plan,  such  suspensions  shall  be  continued  to  the  date
  specified  by  the authority, which date shall in no event be later than
  the end of the interim finance period, provided  that  such  suspensions
  shall  terminate with respect to employees who have agreed to a deferral

  of salary or wage increase upon the certification of  the  agreement  by
  the authority pursuant to paragraph (b) of this subdivision.
    (b)  This  subdivision  shall  not  be  applicable to employees of the
  county or employees of a covered organization covered  by  a  collective
  bargaining  agreement  or  an  employee  of  the  county  or  a  covered
  organization not covered by a collective bargaining agreement where  the
  collective  bargaining representative or such unrepresented employee has
  agreed to a deferment of salary or wage increase, by  an  instrument  in
  writing which has been certified by the authority as being an acceptable
  and appropriate contribution toward alleviating the fiscal crisis of the
  county. Any such agreement to a deferment of salary or wage increase may
  provide  that  for  the  purposes  of  computing  the  pension  base  of
  retirement allowances, any deferred  salary  or  wage  increase  may  be
  considered  as  part  of compensation or final compensation or of annual
  salary earned or earnable.
    (c) The authority may, if it finds that the  fiscal  crisis  has  been
  sufficiently alleviated or for any other appropriate reason, direct that
  the  suspensions  of  salary  or  wage increases or suspensions of other
  increased  payments  or  benefits  shall,  in  whole  or  in  part,   be
  terminated.
    4.  Prohibition;  penalties.  (a)  During  any  control  period (i) no
  officer or employee of the county or of any of the covered organizations
  shall make or authorize an obligation or other liability  in  excess  of
  the  amount  available  therefor  under  the  financial  plan as then in
  effect; (ii) no officer or employee of the  county  or  of  any  of  the
  covered  organizations  shall  involve  the county or any of the covered
  organizations in any contract or other obligation or liability  for  the
  payment  of  money  for  any  purpose  required  to  be  approved by the
  authority unless such contract has been  so  approved  and  unless  such
  contract  or obligation or liability is in compliance with the financial
  plan as then in effect.
    (b) No officer or employee  of  the  county  or  any  of  the  covered
  organizations  shall  take any action in violation of any valid order of
  the authority or shall fail or refuse to take any action required by any
  such  order  or  shall  prepare,  present  or  certify  any  information
  (including  any  projections or estimates) or report to the authority or
  any of its agents that is false or misleading, or,  upon  learning  that
  any  such  information  is  false  or misleading, shall fail promptly to
  advise the authority or its agents thereof.
    (c) In addition to any penalty or liability under any other  law,  any
  officer  or  employees of the county or any of the covered organizations
  who shall violate paragraph (a) or (b)  of  this  subdivision  shall  be
  subject   to  appropriate  administrative  discipline,  including,  when
  circumstances warrant, suspension from duty without pay or removal  from
  office  by order of either the governor or the county executive; and any
  officer or employees of the county or any of the  covered  organizations
  who  shall  knowingly and willfully violate paragraph (a) or (b) of this
  subdivision shall, upon conviction, be guilty of a misdemeanor.
    (d) In the case of a  violation  of  paragraph  (a)  or  (b)  of  this
  subdivision  by  an  officer  or  employee  of  the county or any of the
  covered organizations, the  county  executive  or  the  chief  executive
  officer  of  such  covered  organization shall immediately report to the
  authority all pertinent facts together with a statement  of  the  action
  taken thereon.