New York State Comptroller Thomas P. DiNapoli announced the following audits and reports were issued during the week ending September 16, 2017

New York State Comptroller Thomas P. DiNapoli announced the following audits and reports were issued during the week ending September 16, 2017

Source: Office of the State Comptroller

Click on text highlighted in color  to access the full report

Division of Housing and Community Renewal (DHCR): Administration of Mitchell-Lama Waiting Lists (2016-S-46)
The majority of sampled new admissions, internal transfers and successions were selected from an automated wait list (AWL) and approved by DHCR. However, in most cases, neither DHCR nor the development maintained the documentation required to confirm that tenants were selected in the order they appeared on the wait list. One development did not request or receive DHCR approval for eight of the nine succession apartments it awarded and granted three apartments to individuals who were not on the AWL. Four of the five developments did not comply with the required 3:1 internal/external ratio when offering apartments to applicants. As of July 31, 2016, one development had 51 vacant units, even though it had applicants on its internal and external AWLs. Ten of these units were vacant for as long as five years.

Department of Labor (DOL): Examination of Unemployment Insurance Benefits 2016 Annual Report (2017-BSE4-01)
Based on a selection of 57,000 transactions, auditors identified 4,864 overpayments totaling more than $1.6 million. Based on the overpayments identified, DOL assessed $217,290 in monetary penalties to 137 claimants. As the result of the current and prior years’ findings, DOL also recovered $247,483 in forfeited UI benefits from claimants who DOL determined made false statements or representations to obtain benefits to which they were not entitled. Auditors worked with DOL to identify another $238,792 in potential recoveries for past UI overpayments from 130 state employees hired during 2016.

Department of Taxation and Finance: Child and Dependent Care Credit (2017-BSE8-01)
During the period of the examination, the department processed 444,127 returns containing credits totaling $177.1 million. Auditors found it processed 29,102 personal income tax returns for tax year 2015 that contained potentially inappropriate credits valued at $18.3 million.

State Education Department: Adirondack Helping Hands, Inc., Compliance with the Reimbursable Cost Manual (2016-S-88)
For the fiscal year ended June 30, 2014, auditors identified $37,643 in ineligible costs that Adirondack reported for reimbursement for special education programs. The ineligible costs included: $22,215 in other than personal service costs that consisted and $15,428 in excess personal service costs.

New York State Insurance Fund (NYSIF): Incarcerated and Death Matches (2017-SIF)
Auditors examined $1.4 billion in payments for more than 17 million in medical and other service charges the NYSIF made on behalf of nearly 215,000 individuals during the period January 2014 through February 2017. Under state law, any person incarcerated upon conviction of a felony is ineligible for all benefits. NYSIF will not pay for medical and other service charges that occur subsequent to a claimant’s date of death.  Based on the match results and observations of the payment process, auditors concluded NYSIF has established reasonable controls to minimize the risk of improper payments in these areas. 


New York State Comptroller Thomas P. DiNapoli announced his office completed audits of the:

Town of Barrington – Financial Management 

Village of Homer – Purchasing and Credit Cards

Plattekill Library – Budgeting Practices

Town of Scriba – Board Oversight

Terryville Fire District – Treasurer’s Duties 


Former Town of Minerva Clerk Sentenced to Prison for Embezzling Town Funds
Jordan Green, the former clerk to the supervisor for the town of Minerva, was sentenced in Essex County Court to 1 1/3 to 4 years in state prison and ordered to pay restitution.

Bedford-Stuyvesant is on the Rise
The Bedford-Stuyvesant neighborhood has experienced strong population, business and job growth in recent years, according to a report by New York State Comptroller Thomas P. DiNapoli. 

Comptroller DiNapoli's Proposal to Help Local Governments Negotiate Better Fire Protection Contracts Signed Into Law 
Bill increases transparency relating to the contract negotiation process for fire protection contracts between incorporated fire companies and districts, towns or villages.

 

 

An arbitrator's award may only be vacated by a court if it violates public policy, is irrational or it exceeds specified limitations on the arbitrator's power

An arbitrator's award may only be vacated by a court if it violates public policy, is irrational or it exceeds specified limitations on the arbitrator's power

Subway Surface Supervisors Assn. v New York City Tr. Auth., 2017 NY Slip Op 06444, Appellate Division, Second Department

The Subway Surface Supervisors Association [Association] and the Transit Supervisors Organization, Local 106 [Local 106] both claimed to represent certain New York City Transit Authority employees working at a bus depot [Depot] in Manhattan.

Both employee organizations filed grievances with the employer, the New York City Transit Authority [TA] under their respective collective bargaining agreements. The Association then participated in a mediation effort with Local 106 and the TA, but the mediation effort failed to resolve the conflict.

The Association next filed a "Petition for Unit Clarification and/or Unit Placement" with the New York State Public Employment Relations Board [PERB]. The petition, however, was deemed withdrawn and the matter closed. The Association agreed to arbitrate the dispute and was involved in the selection of the arbitrator.

TA sent a letter to the arbitrator indicating the parties' agreement to submit "to a tri-party arbitration ... to resolve all current disputes between the parties, including jurisdiction and representation issues involving supervisory personnel" related to the Depot. All the parties participated in the initial arbitration hearing after which the arbitrator issued an award dated December 4, 2014.

Subsequently, "by consent of all parties," Association participated in a second arbitration hearing before the arbitrator. The arbitrator issued a supplemental award dated January 29, 2015 and following the issuance of the second arbitration award the Association "participated in three telephone conferences with the arbitrator concerning additional issues that arose between the parties."

The Association then initiated a CPLR Article 75 proceeding seeking a court order vacating the arbitration award dated December 4, 2014 on the grounds that the award "violated public policy considerations embodied in the Taylor Law" [Civil Service Law Article 14] and that the arbitrator had exceeded his power under the collective bargaining agreement between the Association and the TA. The Supreme Court denied the petition and the Association appealed.

The Appellate Division, noting that a party seeking to overturn an arbitration on one or more of the grounds stated in CPLR 7511(b)(1) "bears a heavy burden," and, citing Matter of New York City Tr. Auth. v Transport Workers Union of Am., Local 100, 14 NY3d 119, noted that in that action the Court of Appeals indicated it had recognized "three narrow grounds that may form the basis for vacating an arbitrator's award—that it violates public policy, is irrational, or clearly exceeds a specifically enumerated limitation on the arbitrator's power."  

The Appellate Division decided that the Association failed to meet the "strict standards for overturning arbitration awards on public policy grounds."

The Appellate Division further opined that "under the circumstances of this case, the [Association] waived any argument that the award exceeds a specifically enumerated limitation on the arbitrator's power," concluding that Supreme Court had properly denied the petition to vacate the arbitration award.

The decision is posted on the Internet at:

http://www.nycourts.gov/reporter/3dseries/2017/2017_06444.htm

Making false entries in an official record

Removal from public office by operation of law

Munroe v Ponte, 2017 NY Slip Op 02041, Appellate Division, Second Department

§30(1)(e)  of the Public Officers Law mandates the automatic removal of the incumbent from his or her public office "by operation of law" in the event he or she is found guilty of a felony or the violation of his or her oath of office. In effect, the public office is deemed vacant automatically upon the public officer's conviction of a felony or a crime involving a violation of his or her oath of office.*

The Commissioner of the New York City Department of Correction [Commissioner] summarily terminated a correction officer [Officer] pursuant to Public Officers Law §30(1)(e) following his conviction of a misdemeanor -- falsifying business records in the second degree. Officer filed an Article 78 action challenging the Commissioner's action. Supreme Court granted the Commissioner's motion to dismiss Officer's petition and Officer appealed.

Officer had been served with disciplinary charges pursuant to Civil Service Law §75 alleging various acts of misconduct included making "false entries in the . . . enhanced security post logbook." Subsequently indicted on a number of criminal charges, including falsifying business records in the second degree and attempted assault in the third degree, he was subsequently convicted of falsifying business records in the second degree in violation of Penal Law §175.05[1].

Advised that he had been terminated pursuant to Public Officers Law §30(1)(e), Officer commenced a CPLR Article 78 proceeding alleging, among other things, that the termination of his employment was arbitrary and capricious.

Pursuant to Public Officers Law § 30(1)(e), an office is deemed vacant upon an officer's "conviction of a felony, or a crime involving a violation of his [or her] oath of office."

The Appellate Division dismissed Officer's appeal, ruling that under the circumstances of this case, the Officer's petition "failed to set forth allegations sufficient to make out a claim that his termination was made in violation of lawful procedure, was affected by an error of law or was arbitrary and capricious or an abuse of discretion.

Addressing a procedural matter concerning the Commissioner's contention that Officer's Article 78 petition was untimely,  the Appellate Division noted that the four-month statute of limitations did not begin to run when Officer was personally served with a copy of the letter advising him that he had been terminated from his position in accordance with the mandate of §30(1)(e) of the Public Officers Law.

Rather, said the court, as the Commissioner was on notice that Officer had retained counsel to represent him in connection with the disciplinary charges, "once counsel has appeared" the Statute of Limitations or time requirement "cannot begin to run unless that counsel is served with the determination or the order or judgment sought to be reviewed."

*  Police officers and correction officers are "public officers” for the purposes of §30 of the Public Officers Law. Further, in Graham v Coughlin, 72 NY2d 1014, the Court of Appeals upheld the removal of a state correction officer following his conviction of a felony under federal law. The Appellate Division had ruled that Section 30.1(e) applied in cases of the officer’s conviction of a felony under any jurisdiction. Although all public officers are public employees, not all public employees are public officers.

The decision is posted on the Internet at:

http://www.nycourts.gov/reporter/3dseries/2017/2017_02041.htm

The Doctrine of Collateral Estoppel does not bar litigating claims involving the same parties that were not previously considered in prior administrative or judicial actions

The Doctrine of  Collateral Estoppel does not bar litigating claims involving the same parties that were not previously considered in prior administrative or judicial actions

Mehulic v New York Downtown Hosp., 2017 NY Slip Op 06416, Appellate Division, First Department

Following a number of adverse administrative rulings, Surana Mehulic brought an Article 78 action against her former employer, New York Downtown Hospital [Hospital] alleging it had impermissibly retaliated against her for whistle blowing. Supreme Court dismissed her amended complaint, ruling that Mehulic's retaliation claim under Labor Law §741 "is completely barred by [the doctrine of] collateral estoppel".*

The Appellate Division unanimously reversed the Supreme Court's ruling explaining that with respect to the earlier administrative determinations "there was no express or implied ruling that [Hospital], in terminating Mehulic, "had impermissibly retaliated against her for whistle blowing."

The court explained that the issue of whether the Hospital terminated Mehulic because she reported inadequate medical care to her supervisors, and later, the Department of Health was not at issue in the prior administrative proceedings and related article 78 proceeding. Accordingly, said the Appellate Division, the issue of alleged retaliation "was not necessarily decided in the prior proceedings."

The earlier proceedings were initiated by the Department of Health's Office of Professional Medical Conduct to determine whether Mehulic, then a not yet licensed second-year medical resident, should be able to pursue a medical license in New York, and under what conditions.

Although, said the Appellate Division, the prior administrative rulings determined that Mehulic had engaged in professional incompetence on three occasions, there was no express or implied ruling that Hospital had terminated Mehulic's employment on the basis of that incompetence, or whether, in terminating her, Hospital had impermissibly retaliated against her for whistle blowing.

Citing Mehulic v State Board of Professional Medical Conduct, 107 AD3d 1066,  appeal dismissed 22 NY3d 911, the Appellate Division ruled that although Mehulic is precluded from relitigating the three instances of incompetence found in the prior proceedings, the Doctrine of Collateral Estoppel does not otherwise bar the litigation of her retaliation claims. Her defense, noted the Appellate Division, to Hospital's prima facieshowing that the "termination of [Mehulic's] employment was predicated upon grounds other than her exercise of any rights under Labor Law," she had "submitted evidence sufficient to raise triable issues of fact."

* §75-b of the Civil Service Law bars retaliatory action by public employers against a public employee for his or her alleged whistle blowing.

The decision is posted on the Internet at:

http://www.nycourts.gov/reporter/3dseries/2017/2017_06416.htm

Procedural errors to avoid in an appeal submitted to the Commissioner of Education

Procedural errors to avoid in an appeal submitted to the Commissioner of Education

Decisions of the Commissioner of Education, Decision No. 17,166

In this appeal the School District contended, among other things, that the Petitioner's application was untimely, constituted a "class appeal," and that the Petition had not been properly verified. In addition, with respect to Petitioner's reply, the School District claimed that it "should not be considered to the extent it raises new assertions or contains new exhibits."

The School District's objection to a "class appeal"

Addressing the issue of a "class appeal", the Commissioner said Petitioner's attempt to bring this appeal on behalf of individuals who “either reside or own properties within" the School District, such an appeal may only be maintained on behalf of a class where [1] the class is so numerous that joinder of all members is impracticable and [2] where all questions of fact and law are common to all members of the class.

The Commissioner denied class status, explaining that other than identifying the proposed class as residents or property owners within the district, Petitioner’s pleadings did not include any allegations meeting the requirements for a class appeal set out in 8 NYCRR §275.2.  In particular, the Commissioner noted that the Petitioner failed to identify the number of class members and offered no explanation of how all questions of fact and law would be common to all residents and property owners of the School District.

The School District's Objection to the verification of the petition

With respect to the School District 's claim that the petition was not properly verified, the Commissioner, citing 8 NYCRR §275.5[a], said that such a petition must be verified by the oath of a petitioner. However, in this instance the petition had been verified by the attorney for the Petitioner and the attorney was not a party to the appeal. Accordingly, said the Commissioner, the verification was improper.

The School District's objection to the Petitioner's reply

As to the School District's objections with respect to Petitioner's reply, the Commissioner said the Petitioner's “Reply Affidavit” included additional facts and exhibits concerning the School District that were not in the petition.

A reply, said the Commissioner, "is not meant to buttress allegations in the petition or to belatedly add assertions that should have been in the petition." Accordingly, the Commissioner said that she would not considered those portions of the reply that contained "new allegations or exhibits that are not responsive to new material or affirmative defenses set forth in the answer" in her review of Petitioner's reply.

Finally, the Commissioner ruled that the petition was timely but that even had not be dismissed on procedural grounds, "it would be dismissed on the merits."

The decision is posted on the Internet at:

http://www.counsel.nysed.gov/Decisions/volume57/d17166

Court of Appeals to determine whether the Taylor Law trumps Second Class Cities Law with respect to negotiating police disciplinary procedures

Court of Appeals to determine whether the Taylor Law trumps Second Class Cities Law with respect to negotiating police disciplinary procedures

Appeal of Matter of City of Schenectady v New York State Pub. Empl. Relations Bd., 136 AD3d 1086

N.B. The Court of Appeals reversed the Appellate Division's ruling in 134 AD3d 1086. See City of Schenectady v New York State Pub. Empl. Relations Bd., 2017 NY Slip Op 07210, Court of Appeals, Decided on October 17, 2017.

The City of Schenectady [Schenectady], under color of §133 of Article 9 of Second Class Cities Law, announced that it would no longer be bound by negotiated police disciplinary procedures then set out in a collective bargaining agreement between Schenectady and the Schenectady Police Benevolent Association [PBA].

PBA filed an improper practice charge with Public Employment Relations Board [PERB] alleging that Schenectady violated Civil Service Law §209-a(1)(d) of the Public Employees' Fair Employment Act [Article 14 of the Civil Service Law], the so-called “Taylor Law," and ultimately the Appellate Division held that the Taylor Law trumps Second Class Cities Law Article 9 with respect to negotiating police disciplinary procedures.* 

Citing 46 PERB 3025, the Appellate Division said "PERB aptly noted in its decision" that §4 of the Second Class Cities Law  states that a provision of this statute  "such as article 9 containing its police disciplinary procedures shall apply only until such provision is superseded pursuant to the municipal home rule law, was superseded pursuant to the former city home rule law or is or was otherwise changed, repealed or superseded pursuant to law" and that such language "reveals a statutorily planned obsolescence for [the Second Class Cities Law] resulting from subsequent enactment of state or local legislation."

Schenectady appealed the Appellate Division's ruling, which appeal was argued before the Court of Appeals on September 6, 2007.

In Town of Wallkill v Civil Serv. Empls. Assn., Inc. (Local 1000, AFSCME, AFLCIO, Town of Wallkill Police Dept. Unit, Orange County Local 836), 19 NY3d 1066, the Court of Appeals said that negotiating such disciplinary procedures is a "prohibited subject of collective bargaining" with respect to a town and an employee organization representing the police officers of the town, apparently rejecting characterizing such negotiations as a "non-mandatory subject of collective bargaining" within the meaning of the Taylor Law.**

It should be noted that the State's authority for supplementing, modifying or replacing Civil Service Law §75 disciplinary procedures pursuant agreements negotiated with an  employee  organization  pursuant  to the Taylor Law with respect to State officers and employees of the State as the employer is set out in §76.4 of the Civil Service Law.***

§76.4, however, is silent with respect to authorizing a political subdivision of the State as the employer to negotiate supplementation, modification or replacement of  Civil Service Law §75 in the course of collective bargaining between the political subdivision of the State and  an  employee  organization with respect to the political subdivision's  employees in collective bargaining units pursuant to the Taylor Law.

Typically legislation addressing public officers and employees of the State of New York as the employer with respect to personnel matters such as health insurance does not automatically extend to officers and employees of a political  subdivision of the  State and  a political subdivisions of  the State is typically given the option of electing to extend such personnel matters to its officers and employees.

For example, §161.1 of the Civil Service Law authorizes the president of the New York State Civil Service Commission to establish a health benefit plan, commonly referred to as the New York State Health Insurance Program [NYSHIP], for state officers and employees, retirees and their dependents and the employees, retirees and their dependents of certain other entities such as the Statutory Contract Colleges at Cornell and Alfred Universities.

In contrast, §163.4 of the Civil Service Law permits "[a]ny public authority, public benefit corporation, school district, special district, district corporation, municipal corporation, or other agency, subdivision or quasi-public organization of the state to elect to participate in NYSHIP." This is accomplished by the municipality's governing body adopting a resolution "and, in the case of any municipal  corporation where a resolution of its governing body is required by law  to be approved by any other body or officer, such resolution shall also  be approved by such other body or officer."

How do you think the high court will decide Schenectady's appeal, and why? Will it follow its ruling in Town of Wallkill v Civil Serv. Empls. Assn., Inc., 19 NY3d 1066,**** in which it held that negotiating such disciplinary procedures is a "prohibited subject of collective bargaining" with respect to a town and an employee organization representing the police officers of the town" or will it sustain the ruling of the Appellate Division, holding that the PERB was correct in concluding that Taylor Law trumps the Second Class Cities Law when negotiating police disciplinary procedures are concerned?

* The decision, City of Schenectady v New York State Pub. Empl. Relations Bd., 136 AD3d 1086, posted on the Internet at: http://www.nycourts.gov/reporter/3dseries/2016/2016_00729.htm

** NYPPL's summary of this ruling is posted on the Internet at:

https://publicpersonnellaw.blogspot.com/2012/10/negotiating-disciplinary-procedures.html

*** §76.4 provides: Nothing contained in section seventy-five or seventy-six of this chapter shall be construed to repeal or modify any general, special or local law or charter provision relating to the removal or suspension of officers or employees in the competitive class of the civil service of the state or any civil division. Such sections may be supplemented, modified or replaced by agreements negotiated between the state and an employee organization pursuant to article fourteen of this chapter. Where such sections are so supplemented, modified or replaced, any employee against whom charges have been preferred prior to the effective date of such supplementation, modification or replacement shall continue to be subject to the provisions of such sections as in effect on the date such charges were preferred.

**** See, also, Patrolmen's Benevolent Assn. of City of N.Y., Inc. v PERB., in which the Court of Appeals held that "police discipline may not be a subject of collective bargaining under the Taylor Law when the Legislature has expressly committed disciplinary authority over a police department to local officials." posted on the Internet at:

http://www.courts.state.ny.us/reporter/3dseries/2006/2006_02288.htm

Unemployment Insurance Appeal Board may reject an application for unemployment insurance benefits based on its finding the Claimant's employment was terminated due to disqualifying misconduct

Unemployment Insurance Appeal Board may reject an application for unemployment insurance benefits based on its finding the Claimant's employment was terminated due to disqualifying misconduct

2017 NY Slip Op 02109, Appellate Division, Third Department

A Claimant for unemployment insurance benefits appealed a decision of the Unemployment Insurance Appeal Board that found that she was disqualified from receiving unemployment insurance benefits because her employment was terminated due to her misconduct.

Claimant had been found guilty of disciplinary charges filed against her pursuant to §3020-a of the Education Law. The charges alleged that  she had engaged in misconduct, conduct "unbecoming and/or prejudicial," insubordination and violating the employer's rules.

The Department of Education's §3020-a hearing officer found Claimant guilty of the charges and specification filed against and based on the Hearing Officer's findings, Claimant's employment was terminated by her employer.

Claimant then appealed the Unemployment Insurance Appeal Board's decision, challenging the Unemployment Insurance Appeal Board's Hearing Officer's factual and credibility determinations. Essentially Claimant contended that there evidentiary errors were made at the disciplinary hearing.

The Appellate Division, noting that it did not appear that Claimant appealed the §3020-a hearing officer's disciplinary determination, said that her challenges concerning the merits of the disciplinary hearing officer's determination may not be raised in this unemployment insurance proceeding. The court said that the record indicated that Claimant was represented by an attorney at the §3020-a disciplinary hearing and her  attorney "had the opportunity to present evidence and witnesses and to cross-examine the employer's witnesses" in that forum. In addition, Claimant testified at length with regard to the charges and specifications filed against her.

In view of the fact that Claimant had "a full and fair opportunity to litigate the charges of misconduct at that hearing," the Appellate Division said that the Board "properly gave collateral estoppel* effect to the [§3020-a] Hearing Officer's factual determinations." In addition, having taken into account the factual findings concerning Claimant's misconduct, the court said that the Board "was entitled to make its own independent conclusions as to whether [Claimant's] behavior constituted disqualifying misconduct for the purposes of [determining her eligibility for] unemployment insurance benefits."

Finding that the Board's decision to give "collateral estoppel effect" to the factual findings in the disciplinary hearing was not affected by an error in law and its finding that Claimant had committed disqualifying misconduct was supported by substantial evidence, the Appellate Division ruled that it determination would not be disturbed.

* The Doctrine of Collateral Estoppel stands for the proposition that a decision between parties is conclusive as to the issues or controverted points adjudicated by a tribunal having jurisdiction and may not be relitigated by the same parties in a subsequent proceeding involving the same issue or issues in a different forum.

The decision is posted on the Internet at:

http://www.nycourts.gov/reporter/3dseries/2017/2017_02109.htm

New York City employee found guilty of used his employer's telephone and computer equipment for his political campaign while at work

New York Cityemployee found guilty of used his employer's telephone for his political campaign while at work

Oberman v New York City Conflicts of Interest Bd., 2017 NY Slip Op 02366, Appellate Division, First Department

Accepting the findings and recommendation of a New York City Office of Administrative Trials and Hearings [OATH] Administrative Law Judge [ALJ], the New York City Conflicts of Interest Board found Igor Oberman guilty of having violated New York City Charter §2604(b)(2) and 53 RCNY §1-13(a) and (b), as the result of his using his employer's telephone in connection with his political campaign activities while at work and ordered him to pay a civil penalty of $7,500.* The ALJ, however, found that Oberman's employer failed to prove that he had used the employer's computer during business hours to work on his political campaign. 

§2604(b)(2) provides that "No public servant shall engage in any business, transaction or private employment, or have any financial or other private interest, direct or indirect , which is in conflict with the proper discharge of his or her official duties" while 53 RCNY §1-13(a) and (b), respectively, provide as follows:

   (a) Except as provided in subdivision 3 of this section, it shall be a violation of City Charter §2604(b)(2) for any public servant to pursue personal and private activities during times when the public servant is required to perform services for the City.

   (b) Except as provided in subdivision 3 of this section, it shall be a violation of City Charter §2604(b)(2) for any public servant to use City letterhead, personnel, equipment, resources, or supplies for any non-City purpose.

With respect to the penalty to be recommended by the Administrative Law Judge, Oberman contended that he suffered financial hardship due to his being terminated from his position and his failed run for elected office. The ALJ said that was there no proof with respect to Oberman's claims of financial hardship and opined that Oberman's "good work" in his former employment "is not compelling mitigation." However, said the ALJ, Oberman's "termination from employment should be factored into a penalty determination" and the Board's imposing a $7,500 civil penalty "takes into account the Board’s precedent, the aggravating and mitigating factors, and it comports with the Board’s deterrent function."

Oberman appealed the Board's determination and the penalty it imposed. The Appellate Division unanimously confirmed the Board's ruling

The court held that the Board's determination was supported by substantial evidence and there was no basis to disturb the credibility determinations of the Administrative Law Judge made at the Oberman's administrative hearing. Further, said the Appellate Division, "strong circumstantial evidence" including records of numerous calls involving Oberman's work telephone and donations to Oberman's political campaign raised a reasonable inference that Oberman used his public employer's resources for private purposes, "in violation of Charter §2604(b)(2) and 53 RCNY § 1-13(a) and (b)."

Citing Kelly v Safir, 96 NY2d 32, the Appellate Division held that the penalty was not shockingly disproportionate to the offense "in light of the extent of [Oberman's]  misconduct, the warnings he had received against such misconduct, his failure to accept responsibility, and the high ethical standards to which he was held as an attorney."

* The administrative hearing findings and recommendation of the OATH Administrative Law Judge [OATH Index No. 1657/14]  and the decision of the City of New York Conflicts of Interest Board, COIB Case No. 2013-609, are both posted on the Internet at: http://archive.citylaw.org/wp-content/uploads/sites/17/oath/14_Cases/14-1657.pdf

The Appellate Division's decision is posted on the Internet at

http://www.nycourts.gov/reporter/3dseries/2017/2017_02366.htm

Appeals to the Commissioner of Education seeking to remove members of a Board of Education for alleged misconduct or alleged neglect of duty

Appeals to the Commissioner of Education seeking to remove members of a Board of Education for alleged misconduct or alleged neglect of duty

Decisions of the Commissioner of Education, Decision No. 17,160

Decisions of the Commissioner of Education, Decision No. 17,164

In Decision 17,160, Matter of the Board of Education of the Lindenhurst Union Free School District, the Petitioners alleged that the Board of Education had committed certain “special education violations” constituting a willful violation or neglect of duty under the Education Law and sought their removal from certain members from the Board.

The Board of Education of the Hempstead Union Free School District appeal, Decision No. 17,164, concerned Petitioners seeking the removal of certain board members for alleged acts of misconduct, abuse of power and abuse of public office and the conduct of the board with respect to interviewing of candidates for the position of superintendent of schools. 

The Commissioner dismissed both applications for failure to comply with procedural and  other essential requirements.

The Lindenhurst Appeal

Decisions of the Commissioner of Education, Decision No. 17,160

In Lindenhurst the Commissioner found a number procedural errors and omissions on the part of the Petitioners requiring the dismissal of their appeal including:

1. The Petitioners failed to comply with the requirements of sub-divisions 5 and 6 of §275 of the Commissioner's regulations [8 NYCRR 275]. These provisions required that "all pleadings in an appeal to the Commissioner be verified and that an affidavit of verification be attached thereto" because "Petitioners' reply is not verified as required by §§275.5 and 275.6." When an individual verifies a document, he or she is swearing or acknowledging under penalty of perjury that the facts contained in the document are all true.

2. The Petitioners' application was defective because it failed to name and serve necessary parties. A necessary party is an individual or entity whose rights would be adversely affected by a determination of the matter in favor of a petitioner.

3. The Petitioners' notice of petition was fatally defective as §277.1(b) of the Commissioner’s regulations requires that the notice of petition specifically advise a respondent that an application is being made for respondent’s removal from office pursuant to Education Law §306. Petitioners used the notice prescribed under §275.11(a) for appeals brought pursuant to Education Law §310.

4. The Petitioners' appeal was untimely filed. An untimely appeal to the Commissioner of Education is one that was not commenced within 30 days from the making of the decision, or the performance of the act or omission complained of, unless such delay is excused by the Commissioner "for good cause shown."

The Commissioner then observed that "Even if the application were not subject to dismissal on procedural grounds, it would be dismissed on the merits, explaining that "a member of the board of education or a school officer may be removed from office pursuant to Education Law §306 when it is proven to the satisfaction of the Commissioner that the board member or school officer has engaged in a willful violation or neglect of duty under the Education Law or has willfully disobeyed a decision, order, rule or regulation of the Board of Regents or Commissioner of Education" and the petitioner has the burden of demonstrating a clear legal right to the relief requested and the burden of establishing the facts upon which petitioner seeks relief .

On this record, in the words of the Commissioner, Petitioners "have not proven any willful violation or neglect of duty under the Education Law which would warrant removal of the individual respondents from office." Although it has long been held that "that impolite, rude or even aggressive speech is not, by itself, enough to warrant removal ... a single isolated instance of inappropriate or unbecoming speech by a board member is not ordinarily grounds for removal."

However, concluded the Commissioner, while Petitioners failed to proved sufficient grounds for respondents’ removal. the school board is reminded that district residents "have the right to attend board of education meetings and speak about issues of concern, including their views regarding the performance of district staff."

Although the Board contended that one of the Petitioners “repeatedly and unfairly leveled personal insults and accusations” against a school administrator, it does not appear from the record that her comments warranted responses as heated as a respondent's statements that petitioner should be “ashamed” of herself, and that she “embarrassed” herself and reminded the Board members involved that they should "comport [them]selves in the future in a manner befitting holder[s] of public office.”

The Hempstead Union Free School District Appeal

Decisions of the Commissioner of Education, Decision No. 17,164

The Petitioners in this appeal sought a temporary restraining order [TRO] in Supreme Court ex parte* barring the holding a meeting of the Hempstead UFSD Board of Education at the offices of the district’s labor attorney, located outside the school district’s geographic boundaries, would Petitioners contended would be in violation of the Open Meetings Law. The court granted the TRO was granted. 

Contending that certain board members proceeded to hold the meeting in violation of the court-ordered TRO and the Open Meetings Law, Petitioners filed an appeal with the Commissioner and sought "interim relief, in which they sought to restrain the board from taking any actions relating to the interviewing and hiring of a new superintendent of schools pending the outcome of this application and appeal." The Commissioner denied the request for "interim relief."

The Board had asked the Commissioner to dismiss Petitioners' application , contending that [1] the application was untimely, [2] the interim relief requested was moot, [3] Petitioners lack standing to bring this application, and [4] the Petitioners' application must be dismissed for failure to state a claim upon which relief may be granted. 

As to the procedural defects allege by the Board of Education, the Commissioner found that with respect to the Petitioners attempt to use certain events as the basis for its removal application, the application was untimely. However, the Commissioner held that the allegations with respect to the alleged violation of the court-ordered TRO and the Open Meetings Law, the Petitioners' application was, in fact timely "with respect to those alleged violations of law," thus surviving the Board of Educations motion to dismiss this aspect of Petitioners' application.

As to the issue of standing to submit the application to the Commissioner, the Commissioner said as the Petitioners are district residents they have standing to bring a removal proceeding against their elected officials pursuant to Education Law §306 and declined to dismiss the petition for lack of standing.

In its request for relief, Petitioners sought a stay restraining the Board of Education from taking any action "related to the interviewing of candidates, deliberations by the board for the selection of a candidate, and possibly the imminent making of an offer of employment to any candidate for the position of superintendent of schools."  The Commissioner had denied the stay, explaining that "only matters in actual controversy will be considered and the Commissioner will not render a decision on a state of facts which no longer exist or which subsequent events have laid to rest."

In this instance Commissioner found that the relevant school year has ended and thus the Petitioners’ request that the "board president for the remainder of 2016-2017 school year" was moot.

The Commissioner then dismissed the Petitioners' application related to Board of Education allegedly violating the Open Meetings Law "for lack of jurisdiction," explaining that with respect to Petitioners allegations that the board violated the Open Meetings Law and a TRO issued in a proceeding in State supreme court alleging violations of the Open Meetings Law, Public Officers Law §107 vests exclusive jurisdiction over complaints alleging such violations in the Supreme and alleged violations of such law "may not be adjudicated in an appeal to the Commissioner."

Finally, the Commissioner noted that "[i]t is well-established that the Commissioner will not render an advisory opinion on an issue before it becomes justiciable." Here, said the Commissioner, "On this record, I cannot find that a proper basis for removal has been proven based on the alleged violation of the ex parte TRO" as the TRO involves claims under the Open Meetings Law over which the Commissioner did not have jurisdiction. Further, a TRO is, by its nature, a temporary non-final order and any violation of a TRO  is enforceable through the court’s civil contempt power.

In any event, the Commissioner said that record before her indicated that no meeting was held in violation of the TRO. The Board of Education had contended that the alleged meeting involving an executive session held to interview candidates for the position of superintendent of schools had been initially delayed, and upon being advised by their attorney that the TRO had not been lifted, the meeting was not held and the Board of Education did not conduct any interviews of candidates for the position.

 

Under these circumstances, and "in the interest of promoting judicial economy," the Commissioner denied Petitioners' application.

* A proceeding before a tribunal is said to be Ex Parte in situations where one or more of the parties involved is not present or is not represented and a decision is made that affects the absent party or parties. Typically the ex parte decision or order is temporary and issued by the tribunal having jurisdiction where time is limited with respect effectively directing or barring the performance of the act or omission in dispute.

The Lindenhurst Union Free School District decision is posted on the Internet at:

http://www.counsel.nysed.gov/Decisions/volume57/d17160

The Hempstead Union Free School District decision is posted on the Internet at:

http://www.counsel.nysed.gov/Decisions/volume57/d17164

New York State Comptroller Thomas P. DiNapoli announced the following audits and reports were issued during the week ending September 2, 2017

New York State Comptroller Thomas P. DiNapoli announced the following audits and reports were issued during the week ending September 2, 2017

Source: Office of the State Comptroller

Click on text highlighted in color  to access the full report

Town clerk pleads guilty to attempting to increase her ERS retirement benefits 

On August 30, 2017, Springport Town Clerk Deborah Waldron pleaded guilty in Aurelius Town Court to official misconduct and attempted computer trespass, and agreed to resign for her attempts to boost her state retirement benefits by using a town computer, State Comptroller Thomas P. DiNapoli said. 

Waldron, 62, a 25-year town employee, was initially charged in May following an investigation by the Comptroller, New York State Police and the Cayuga County District Attorney’s office. Her actions were exposed during the Comptroller’s review of Springport’s monthly retirement reports. When DiNapoli’s office re-calculated her actual hours and benefits, it prevented Waldron from receiving extra money she did not earn. 

"This case is a warning to any public employee who falsifies retirement records: You are risking arrest and tarnishing your reputation," DiNapoli said. "I hope this case will deter others who attempt to defraud the New York State and Local Retirement System. I thank Cayuga County District Attorney Jon E. Budelmann for partnering with us to protect our retirement system." 

Since taking office in 2007, DiNapoli has committed to fighting public corruption and encourages the public to help fight fraud and abuse. New Yorkers can report allegations of fraud involving taxpayer money by calling the toll-free Fraud Hotline at 1-888-672-4555, by filing a complaint online at investigations@osc.state.ny.us, or by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 14th Floor, 110 State St., Albany, NY 12236. Review prior cases at http://www.osc.state.ny.us/investigations/index.htm.

Employer contributions on behalf of employees will decrease for the State's 2017-2018 fiscal year

Employer contribution rates for the New York State and Local Retirement System (NYSLRS) in State Fiscal Year 2018-19 will decrease from State Fiscal Year 2017-18, New York State Comptroller Thomas P. DiNapoli announced today.

The estimated average contribution rate for the Employees’ Retirement System (ERS) will decrease from 15.3 percent of payroll to 14.9 percent of payroll. The estimated average contribution rate for the Police and Fire Retirement System (PFRS) will decrease from 24.4 percent to 23.5 percent of payroll. 

"We’ve had strong recent investment returns that have helped keep rates stable," DiNapoli said. "Stable rates are very important to our employers and provide the predictability they need to plan for their future budgets. Prudent management helps keep New York State’s pension fund one of the strongest and best funded in the country and allows our public workforce to retire with security."

The investment rate of return was 11.48 percent as of March 31, 2017, the end of the fiscal year for the state pension fund.

Employer rates are determined based on actuarial assumptions recommended by the Retirement System’s Actuary and approved by DiNapoli. A copy of the Actuary’s report can be found here.

In 2015, the Actuary conducted a review of the Systems’ economic and demographic experience for the prior five years. The Actuary proposed assumptions and methods for the actuarial valuations, which were adopted by DiNapoli. Based on that report, DiNapoli lowered the assumed rate of return in 2015 from 7.5 percent to 7 percent. The median assumed rate of return among public pension funds is 7.5, according to a February 2017 brief issued by the National Association of State Retirement Administrators.

In 2012, DiNapoli began providing employers with access to a two-year projection of their annual pension bill six weeks earlier than in previous years. Employers use this projection for preparation of their local budgets.

Projections of required contributions vary by employer depending on factors such as retirement plans, salaries and the distribution of their employees among the six retirement tiers. 

There are more than 3,000 participating employers in ERS and PFRS, and 335 different plan combinations.

Payments based on the new rates are due by Feb. 1, 2019, but may be pre-paid by Dec. 15, 2018.

In April, the Pew Charitable Trusts public policy foundation ranked New York’s pension system as the third best funded retirement system among states.

Read the report, or go to: http://osc.state.ny.us/retire/word_and_pdf_documents/reports/actuarial_assumption/aa_2017.pdf.

See a chart of historical employer contribution rates, visit: http://osc.state.ny.us/pension/images/emplyr_contribution_rates.pdf.
 

A stipulation waiving rights to a disciplinary hearing and agreement to resign from the position may not disqualify the individual for Unemployment Insurance benefits

A stipulation waiving rights to a disciplinary hearing and agreement to resign from the position may not disqualify the individual for Unemployment Insurance benefits

2017 NY Slip Op 05885, Appellate Division, Third Department

As a general rule, a claimant for unemployment insurance benefits who voluntarily leaves his or her employment without good cause or who engages in disqualifying misconduct is ineligible to receive such benefits.

In contrast, courts have held that "[a] claimant who voluntarily leaves his or her position in the face of disciplinary charges may qualify for unemployment benefits if the actions did not amount to misconduct."* Further, as the court ruled in Matter of Oberman [New York City Dept. of Citywide Admin. Servs.—Commissioner of Labor], 143 AD3d 1022, whether a claimant for unemployment insurance benefits has engaged in disqualifying misconduct "is a factual question for the Board to resolve and its determination will not be disturbed if supported by substantial evidence."

In this case the employee [Claimant], who was in the public service, was confronted with various disciplinary charges over a period of time. Ulimately Claimant and the public employer entered into a "stipulation of settlement" resolving the most recent round of alleged disciplinary infractions.** The stipulation provided that Claimant would waive her right to a Civil Service Law §75 disciplinary hearing and would resign from the position by a specified date. In addition, it was stipulated that Claimant "would be allowed to collect her accrued annual leave and, going forward, would receive a 'neutral reference' from the employer."***

Claimant then filed an application for unemployment insurance benefits. The Department of Labor issued initial administrative determinations disqualifying claimant from receiving benefits upon the grounds that she had voluntarily left her employment without good cause or, in the alternative, lost her employment due to misconduct. Claimant appealed the administrative rulings.

An Unemployment Insurance Administrative Law Judge [ALJ] overruled the initial determinations, finding that Claimant "had good cause to separate from her employment and had not otherwise committed disqualifying misconduct." The ALJ also determined that Claimant "had been subject to a hostile work environment."

Ultimately the Unemployment Insurance Appeal Board adopted the ALJ's findings and affirmed the ALJ's decision, rejecting the employer's challenge to the ALJ's ruling granting Claimant unemployment insurance benefits.

The Appellate Division sustained the Board's decision, noting that the stipulation of settlement entered into between Claimant and the employer contained no finding or admission of wrongdoing with respect to the Claimant, holding that the Board credited Claimant's testimony as to the nature of her work environment and her reasons for resigning.

Further, said the court, the Board agreed with the ALJ's findings that Claimant's actions did not rise to the level of disqualifying misconduct but, rather, were undertaken in direct response to her "hostile" and "untenable" work environment — an environment that, in turn, provided her with "a compelling reason for her to resign."

The Appellate Division said that as there was substantial evidence to support the Board's decision regarding Claimant's application for unemployment insurance benefits, "it will not be disturbed notwithstanding the presence of other evidence in the record that could support a contrary conclusion."

* See Matter of Jimenez [New York County Dist. Attorney's Off.—Commissioner of Labor], 20 AD3d 843.

** The stipulation of settlement contained no admission of misconduct, and no finding of wrongdoing on the part of Claimant was made.

*** The decision notes that provided that Claimant would be given a "neutral reference" should a prospective employer contact the agency for such a purpose. In contrast, Education Law §1133.1 provides that “[a] school administrator or superintendent shall not make any agreement to withhold from law enforcement authorities, the superintendent or the commissioner, where appropriate, the fact that an allegation of child abuse in an educational setting on the part of any employee or volunteer as required by Article 23-B of the Education Law in return for the resignation or voluntary suspension from his or her position of such person, against whom the allegation is made.

The decision is posted on the Internet at:

http://www.nycourts.gov/reporter/3dseries/2017/2017_05885.htm