Links to selected items focusing on governmental operations posted on the Internet during the week ending December 20, 2024

253-Page House AI Report Offers Lawmakers a Policy Tool  The bipartisan House Task Force on Artificial Intelligence has issued findings and recommendations in 15 areas including data privacy and national security. Humans, it said, should be at the center of AI policy. READ MORE

2024 Cyber Review: Trump Re-Election Eclipses AI and Ransomware Stories  2024 was a year with growing ransomware attacks, accelerating use of artificial intelligence (for good and evil), more deepfakes in online fraud and election threats being overstated, but Donald Trump becoming president-elect (again) is the top 2024 cyber story. READ MORE

 

Ahead for EVs: Travel Centers, a Single Charging Standard  A massive car-charging plaza is being developed in California, while Colorado is moving forward with a high-speed charging network. And the electric vehicle industry is gravitating toward a single charging standard. READ MORE

 

Alaska to Update Application Process for Permanent Dividend  The Alaska Department of Revenue will work with Saige Consulting to modernize the Dividend Application Information System, by which qualifying residents receive their annual stipend. The new solution is expected in 2026. READ MORE

 

AWS to Invest $10B to Expand Ohio Data Center Infrastructure The company and the Ohio governor’s office announced the plan, which will enable Amazon to enlarge its data centers outside of central Ohio to new sites around the state. Locations of new data centers have not been finalized. READ MORE

 

Baltimore’s Plan to Address Chronic School Absenteeism  As in much of the country, more kids are missing school in Baltimore, leading both city and state officials to propose new policies and early interventions.  READ MORE

 

BEAD Program Director Addresses Its Progress and Future  The Broadband Equity, Access, and Deployment Program has seen significant advances in 2024, and its program director expects this path will continue in 2025 under a new presidential administration. READ MORE

Can Gov Tech Come to the Rescue of Patrol Car Inspections?  Pre-shift inspections of police vehicles is a tedious but vital task that can impact officer and citizen safety. A new tool could make that process more efficient and more reliable — and could save money for cities. READ MORE

 

Cybersecurity Heads Up NASCIO’s 2025 Top 10 CIO Priorities  Artificial intelligence may have been the topic on many minds this year, but cybersecurity and risk management topped NASCIO’s annual list of the top 10 priorities for state CIOs. AI did, however, rise to second Download a free eBook and learn about how to secure your company place this year. READ MORE

 

Days Draw Short for Governments to Obligate Pandemic Funds  State and local agencies have until Dec. 31 to commit federal funds they received through the State and Local Fiscal Recovery Fund as part of the response to the pandemic. Anything not obligated must be returned. READ MORE

 

Drug Deaths in California Are Falling Fast For the first time in a decade, the state is seeing a sustained decline, mirroring national trends. After nine months of decreases, drug deaths in the state are down 17 percent this year.  READ MORE

 

Ed Tech Confronts GenAI, Cybersecurity and Tech Use Issues  Generative AI, cyber threats, TikTok and phone bans are some of the major issues that impacted ed tech in 2024. In the new year, school boards need to determine how to move forward. READ MORE

Florida AI Broadcast System Unifies Disaster Communications  The state recently launched BEACON, driven by artificial intelligence and capable of transforming written emergency updates into real-time, multilingual audio message broadcasts on multiple platforms. READ MORE

Fraud in computer programming work  A senior official in New York State Governor Kathy Hochul's administration warned state agency leaders about suspected fraud involving hourly computer programmers. Read more

Future of EV Policies at the Federal Level Is Unclear  Officials from the Joint Office of Energy and Transportation offered measured hope and little guarantees during a recent discussion that the federal government would remain committed to advancing adoption of electric vehicles. READ MORE

 

How AI, Security, Inclusion Redefined Government in 2024  In a pivotal year, governments enacted AI laws, strengthened defenses, bridged the broadband gap, and prioritized accessible, user-friendly digital services. As 2025 nears, most jurisdictions still lack fully mature AI frameworks. READ MORE

 

How Jacksonville is Preserving Family Wealth in Majority-Black Neighborhoods  A new program preserves home ownership for vulnerable residents who are at risk of property displacement through heirs’ properties.  LEARN MORE

 

How One City Cut Its Poverty Rate in Half  Over the past decade, Richmond, Va., has managed to cut its poverty rate by 45 percent. Many things broke right for the city, but a pair of mayors stuck with a long-term plan to make it happen.  READ MORE

 

How Smart Governments Are Cutting Costs While Better Engaging Residents Your boss will love you when you provide these cost-cutting solutions. Learn to harness the power of digital government and its digital channels to engage residents better and reduce bottom-line expenses. Download Now

 

How Vermont Uses Incentives to Treat Substance Use and Reduce Crime  Chittenden County was seeing a rise in homelessness, property crime and substance use. A new diversion program provides an alternative to the status quo.  LEARN MORE

Innovative Approaches to Modernization for Local Government  Many local governments have an urgent need to modernize technology systems and update manual business processes. Modernization can support different priorities, including cybersecurity, constituent experience, resilience, and data-driven decision-making.  DOWNLOAD

 

Iowa Can Become a Model for Property Tax Reduction  Iowa has helped prompt other states to adopt flat income tax rates. To bring down property taxes, the state has to address local government spending.  READ MORE

 

Is foreign software running on your computer?   Get a free I.T. security health report to mitigate the risks of shadow I.T., nation-state attacks, and unpatched vulnerabilities.   Download Now

 

James Weaver Leaving N.C. CIO Post for Private Sector  The state CIO, who is also secretary of the North Carolina Department of Information Technology, will retire Dec. 31. State Attorney General Josh Stein, who was elected governor Nov. 5, has reportedly nominated a successor. READ MORE

 

Just Before Leaving Office, Washington Gov. Inslee Proposes $4B in Tax Hikes  When Democrat Jay Inslee took office in 2013, the state’s two-year budget was $38.4 billion. Now, as he prepares to leave, he’s released a $78.8 billion spending plan.  READ MORE

 

Kentucky CIO Ruth Day to Retire After Five Years in Role  The state’s chief information officer will serve through Dec. 31, the state said in announcing her retirement. Gov. Andy Beshear picked her to lead the Commonwealth Office of Technology at the start of his first term. READ MORE

 

L.A.-Area Cyber Attack Could Impact 17M Patient Records  The incident Dec. 1 downed computer and most phone systems at two hospitals in southeast Los Angeles County, and one in Los Angeles. Urgent care centers, doctors’ offices, and a home health and hospice agency were also compromised. READ MORE

 

Legislator’s 15-Year Quest to Build a New Law School Nears Fruition  Texas state Rep. Armando Martinez has been arguing for years that a law school would help the Rio Grande Valley economy and reduce brain drain. Local colleges are finally working on a plan.  READ MORE

 

Make Redesigning Your Website Fast and Easy  Ready to elevate your community's online presence? Download our comprehensive website redesign kit to get expert advice, tailored timelines, and scalable solutions for cities and counties of any size!  Get My Checklist

 

Make Tech Procurement Easy with These Proven Tips  This quick guide offers 5 practical tips to simplify government technology procurement.
DOWNLOAD

 

Michigan House Considers Moving More Workers Into Traditional Pensions  A bill would allow more public employees to shift out of 401(k)-style plans into more traditional pensions, which could help with recruitment. But critics say costs are a reason the state has moved away from such plans for decades.  READ MORE

 

Missoula, Mont., Police Evaluating AI Report Software City officials have approved a request from Missoula police for 120 new Tasers and a bundle of add-on services, including AI software that writes up to 80 percent of police reports. READ MORE

 

Most Reports Ordered by Legislature Go Missing  Many new laws passed by California contain requirements for progress reports. This year, agencies have sent in such reports only 16 percent of the time.  READ MORE

 

Moving Courts to the Cloud  Courts are inundated with tasks -- particularly in large jurisdictions and statewide systems that manage records across a wide geographic area. By migrating on-premises systems to the cloud and using software-as-a-service solutions, courts can simplify processes, improve security and performance, and enhance constituent services.  DOWNLOAD

 

New Dallas County CIO Has Considerable Area Experience  Justine Tran, recently named technology leader, served as deputy CIO for the city of Dallas for nearly four years. She brings with her years of technology work in the Dallas-Fort Worth area. READ MORE

 

Newsom to Double Number of State Jobs That Won’t Require College Degree  California’s Democratic governor will also expand job training and credential programs to help more residents without degrees find work in the public sector.  READ MORE

 

Ohio Considers Plan to Shut Poor-Performing Schools Automatically  A bill would shut down public schools that are among the 5 percent worst performers, matching charter school standards. Critics say basing closures on percentages means schools would be lost every year.  READ MORE

 

Outcome in Georgia’s Closest House Race in Doubt Due to Botched Ballots  The contest was decided by 48 votes, but about 60 residents were given ballots for the wrong district. A judge may order a new election.  READ MORE

 

Philadelphia’s Return-to-Office Policy Puts Pressure on Private Employers  Mayor Cherelle Parker has ordered city workers to show up at the office five days a week, leading more companies to follow suit. But hybrid work remains a new normal in many places.  READ MORE

 

Prosecutor Removed by DeSantis Won Her Seat Back. Will He Let Her Stay?  After being suspended by Florida’s governor in 2023, Orlando-area prosecutor Monique Worrell won re-election in November. But DeSantis’ replacement said he might not help her return.  READ MORE

 

Remote workforces are a ticking time bomb!  Download a free eBook and learn about how to secure your company's remote workforce.  Check Your Device Now!

 

Report: California Employees Should All Get AI Training Artificial intelligence training should be mandatory for state employees to better prepare California for the anticipated growth of the new technology, a new report has recommended. READ MORE

 

Resolve to Be Resilient: Top Cyber Priorities for State and Local Government  Now that November is behind us, let’s reflect on the important lessons from CISA’s Critical Infrastructure Security and Resilience Month. This year’s theme — Resolve to be Resilient — reminded us that, as critical infrastructure, state and local agencies must prepare and invest now for the disruptions of tomorrow.  More Information

 

San Diego Backtracks on Climate Change Requirements  Two years ago, the city crafted heralded policies on requiring electrification of buildings and cars. This week, it softened restrictions significantly.  READ MORE

State and Local Govts Boost Accessibility in Digital Services  This year, local and state governments increased access to digital services for people with disabilities, in part due to a new ruling from the DOJ. READ MORE

 

State of Oklahoma OMES Takes a Whole-of-State Approach  Overseeing everything from state finances and human resources to property, real estate management and construction services, OMES is the backbone of Oklahoma. Spearheading a “whole-of-state” approach to essential services, OMES strives to increase efficiency, reduce financial and administrative overheads, and eliminate the duplication of effort, making it easier for the state’s agencies and affiliates to focus on their core missions.  More Information

 

Stephanie Dedmon, Tennessee’s CIO of Six Years, Will Retire  Elevated to lead state technology in October 2018, Dedmon is a nearly 20-year state staffer and former deputy CIO. Her recent work has included guiding a refresh of the unemployment insurance system. READ MORE

 

Strengthen Your Multicloud Security  Gain 100% visibility into your cloud environment, eliminating blind spots and enabling proactive risk reduction.  LEARN HOW

 

Strengthening Multicloud Security in Government  Learn how a CNAPP empowers governments with visibility, automation, and Zero Trust strategies to protect against evolving cloud security risks. DOWNLOAD PAPER

 

Supporting Government in an Era of Digital Service Delivery  Several recent initiatives from the Beeck Center are intended to assist the public sector in digital service delivery, including FormFest 2024 and the Digital Government Hub, an innovation-focused fellowship. READ MORE

 

Supreme Court Ruling Could Help Blue States Resist Trump Policies  The Court's decision overturning the Chevron doctrine could affect everything from fishing rules to transgender rights under Trump. It could also hamper red states.  READ MORE

 

Texas Donor Pledges $20 Million to Create 'True Republican Majority'  Panhandle businessman Alex Fairly, the father of an incoming state representative, was already a major GOP donor. Now he's funding a new group to support more conservative politicians.  READ MORE

 

The Legacy of a Politician Who Never Wavered  Vincent Fort served in the Georgia Senate for nearly three decades as a forceful, effective voice for “the least of these.” As he copes with cancer, it's important to acknowledge a vanishing breed of leader.  READ MORE

 

The Potential, Pros and Cons of Atlanta’s New AI Commission  The Georgia city is the latest local government to set up an AI study group, which could lead to municipal improvements. But before that happens, the commission might have to make it through several hurdles. READ MORE

 

The Reasons California’s Latino Voters Have Shifted Right  Immigration is no longer the primary lens through which Latinos see the world. They are rapidly becoming more defined as economically populist voters, exasperated with the political failure to address their economic concerns.  READ MORE

 

These Might Be the Good Old Days for Public Finance  Taming of inflation was the year’s main financial story. Even if voters were upset about rising property taxes, governors, mayors, finance directors and pension pros may soon look back wistfully at 2024’s business-as-usual atmosphere.  READ MORE

 

Tracy Barnes, Indiana CIO During COVID, Will Step Down  After more than four years in his position as state CIO, Tracy Barnes is preparing for his January departure, when a new governor will take the reins from Gov. Eric Holcomb. Barnes has been with the state nearly a decade. READ MORE

 

Transforming Healthcare Access  Learn how Covered California modernized its healthcare platform to provide faster, more reliable services for millions of residents.  DOWNLOAD

 

Transforming Public Services  New technologies and strategies are important for modernizing government services. But government workforces must also to new ways of working. This paper shares advice from top public sector leaders on navigating change, engaging stakeholders and fostering innovation.  DOWNLOAD

 

Unlocking Agility and Innovation with Modernization  By leveraging tools like artificial intelligence (AI), data analytics and cloud computing, organizations can transform legacy systems and build a foundation for future growth and public trust. Learn more about the benefits of modernizing by downloading the full publication. DOWNLOAD

 

Urbana, Ill., Mulls Council Approval of Surveillance Tech  An ordinance from two city aldermen would create an approval process for “policing surveillance technology and databases” as well as policy. The police chief has said he cannot support it as written. READ MORE

 

Using AI for Public Sector Cybersecurity  This rapid roadmap details how AI strengthens security, outlines the major AI security challenges and explains how you can measure your cyber progress. DOWNLOAD

 

West Virginia Launching New Digital Driver’s License App  The state DMV plans to make available a new smartphone app that allows West Virginia residents to store driver’s licenses and other identification credentials on their phones to verify their identities. READ MORE

 

What to Expect for Ed Tech in 2025: Experts Weigh In  According to several leaders of ed-tech companies and nonprofits, 2025 will bring a need for increased teacher and state-level leadership, better data, college modernization, and greater focus on the global ethics of AI. READ MORE

What’s New in Digital Equity: Feds Fund Connectivity  Plus, North Carolina launched a new website to support digital inclusion, Massachusetts is investing in connecting public housing properties, CISA issued mobile communications guidance, and more. READ MORE

The New York State Department of Civil Service has published Advisory Memorandum 24-08 concerning §72 of the New York State Civil Service Law

Advisory Memorandum 24-08 reflects changes required as the result of certain amendments to §72 of the New York State Civil Service Law to take effect January 1, 2025 [See Chapter 306 of the Laws of 2024]. 

Advisory Memorandum 24-08 in PDF format is posted on the Internet at:

 https://www.cs.ny.gov/ssd/pdf/AM24-08Combined.pdf.

School district found to have failed to satisfy its burden of proof demonstrating grounds to support vacating an arbitration award it challenged

A school district [District] challenged an arbitration decision which reversed its reassignment of one of its teachers [Teacher] represented by the Teachers' Association from a second grade class to a Kindergarten class. Ultimately, the arbitrator determined that District did not properly weigh the factors for reassignment, sustained the grievance and directed District to reassign Teacher back to a second grade class.

District subsequently commenced this proceeding seeking to vacate the arbitration award pursuant to CPLR 7511 (b) (1) (iii), contending that the arbitrator's decision was irrational and that he had exceeded his powers. Supreme Court, deciding the District had not satisfied its burden of proof to demonstrate grounds for revocation of the award, denied the petition. District appealed.

Noting that "Judicial review of arbitral awards is extremely limited" and a court may vacate an award "when it violates a strong public policy, is irrational or clearly exceeds a specifically enumerated limitation on an arbitrator's power," the Appellate Division opined that "courts may not vacate an award based on their disagreement with the reasoning or outcome, even if the arbitrator made errors of law or fact".

Citing Matter of Douglas Elliman of LI, LLC v O'Callaghan, 220 AD3d 945 and noting that "an award is irrational if there is no proof whatever to justify the award", said that the party "seeking to overturn an arbitration award bears a heavy burden and must establish a ground for vacatur by clear and convincing evidence".

As stipulated by the parties, the issue for the arbitrator to decide was whether District had violated the relevant provision of the Collective Bargaining Agreement [CBA] when it reassigned Teacher to a kindergarten class. 

The court's decision noted that the relevant provision set out in the CBA provides that the following principles shall be applied in the reassignment or transfer of teachers: 

(a) the educational welfare of the child; 

(b) the convenience and wishes of the teacher applicant; 

(c) individual qualifications; 

(d) instructional requirements; 

(e) staff availability; 

(f) the special needs of the school; 

(g) the recommendations of the principal; and

(h) where the foregoing factors are substantially equal in the opinion of the superintendent, preferences in assignments or transfer shall be given to "the incumbent applicant with the greater number of years of service" in the school district.

In the words of the Appellate Division, the arbitrator ultimately found that, "[u]pon review of the record in this case, . . . it is clear that in making his decision to involuntarily transfer [Teacher] from second grade to kindergarten, [the principal's] attention was focused solely on criterion (a), the educational welfare of the child, and (g) the recommendation of the [p]rincipal." 

In reaching this determination, the arbitrator also found that, when deciding whether to reassign Teacher to kindergarten, the principles of (b), the convenience and wishes of the teacher, (c), individual qualifications, (d), instructional requirements and (e), staff availability, were "lacking".

The court said it disagree with District that the arbitrator's decision was irrational because he based his decision on events that occurred subsequent to the decision to reassign Teacher for the 2021-2022 school year, explaining even if [the court] were to find that the arbitrator's consideration of subsequent events was erroneous, "it would not justify vacating the award" as the arbitrator's consideration of events subsequent to the superintendent's decision primarily affected the analysis as to the principles of (d), instructional requirements and (e), staff availability. 

Further, the court said the arbitrator's determination that the principles of (b), the convenience and wishes of the teacher and (c), individual qualifications had not been sufficiently considered was based largely on circumstances known to the principal at the time of his decision and thus District had not demonstrated that "there was no proof whatever to justify the award so as to render it entirely irrational".

Accordingly, the Appellate Division concluded that Supreme Court properly determined that District failed to meet its burden of proof in demonstrating that the award was irrational and thus exceeded the arbitrator's authority.

Click HERE to access the Appellate Division's decision posted on the Internet.

The New York State Court of Appeals rules that the City of New York must pay up to the statutory cap for any Health Insurance Plan it offers to employees and retirees

The New York State Court of Appeals held that the City of New York is required to pay up to the statutory cap for any health insurance plan it offers to its employees and retirees.

The Court did not reach the question of how the statutory cap should be determined, explaining that "the City has not demonstrated that the question was preserved, and its answer depends on 'further evidence' not presented on the record below."

The full text of the decision of the Court is set out below.

Matter of NYC Org. of Pub. Serv. Retirees, Inc. v Campion

2024 NY Slip Op 06291

Decided on December 17, 2024

Court of Appeals

Wilson, Ch. J.

Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.

This opinion is uncorrected and subject to revision before publication in the Official Reports.

Decided on December 17, 2024

No. 93

In the Matter of NYC Organization of Public Service Retirees, Inc., et al., Respondents,

v

Renee Campion, et al., Appellants.

Richard Dearing, for appellants.

Jacob S. Gardener, for respondents.

New York City Municipal Labor Committee, Donald Berwick, New York City Correction Captains Association et al., Physicians for a National Health Program-New York Metro,

The Public Sector HealthCare Roundtable, amici curiae.

WILSON, Chief Judge:

At issue on this appeal are the portions of Administrative Code of the City of New York § 12-126 requiring New York City ("City") to pay, for active employees, retirees and their dependents, "the entire cost of health insurance coverage," defined as "[a] program of hospital-surgical-medical benefits," in an amount "not to exceed one hundred percent of the full cost of H.I.P.-H.M.O. on a category basis." The statute requires that the City's program includes "hospital[,] surgical [and] medical benefits." The statute also requires the City to pay the full cost of the program, so long as that cost does not exceed the comparator in the statute. The question in this case is what section 12-126 requires the City to do when it offers more than one health insurance plan to employees and retirees. Petitioners argue that section 12-126 requires the City to pay, up to the statutory cap, for any plan it offers. The City contends that its section 12-126 obligation is satisfied if it pays up to the cap for one health insurance plan providing hospital, surgical and medical benefits. It argues that it may offer additional plans but has no statutory obligation to pay any portion of their cost, and explains that when it has paid for additional plans in the past, it has done so because it agreed to in collective bargaining, not because it was statutorily required to do so. The parties also disagree as to which health insurance plan sets the statutory cap for Medicare-eligible retirees.

We hold that section 12-126 requires the City to pay up to the statutory cap for any plan it offers to employees and retirees. We do not reach the question of how the statutory cap should be determined because the City has not demonstrated that the question was preserved, and its answer depends on "further evidence" not presented on the record below.

I

New York City provides health insurance coverage to active employees and retirees. Many of the City's retirees are 65 and over and therefore eligible for Medicare. Because Medicare covers a large share of an individual's health insurance costs, the health insurance plans available to Medicare-eligible individuals require enrollment in Medicare. The plans offered to such persons may be either Medigap or Medicare Advantage plans. Medigap plans supplement regular Medicare by insuring costs that Medicare does not cover. Under a Medigap plan, the retiree is covered by Medicare and by a supplemental private insurance plan. Medicare Advantage plans, in contrast, replace the federal government with a private insurer as the primary provider of health insurance. The insurance company receives subsidies from the federal government to pay for the costs of healthcare.

This case arises out of the City's plan to discontinue payment for any portion of the premiums for Senior Care, a Medigap plan which petitioners are enrolled in and wish to keep. Historically, the options offered to Medicare-eligible City retirees included two plans: the HIP VIP Premier (HMO) plan ("HIP VIP") and Senior Care. Until 2021, the City paid the full cost of premiums for both. If a retiree selected a plan that was more expensive than Senior Care, the City would pay the premium up to the cost of Senior Care, and the retiree would be responsible for the remaining cost. As of 2021, the majority of City retirees (approximately 200,000 out of 250,000) were enrolled in Senior Care.

In July 2021, the City and the Municipal Labor Committee (MLC)—an association of unions that bargains, on behalf of its constituent unions, with the City on Citywide health benefits—agreed to change the health insurance benefits offered to Medicare-eligible retirees. Under the plan, retirees enrolled in Senior Care would be automatically enrolled in a new NYC Medicare Advantage Plus Plan (MAPP) unless they opted out by October 31, 2021. The City would continue to offer Senior Care as an option for Medicare-eligible retirees but would no longer cover any portion of its premiums. The City argues that the changes would reduce its healthcare costs.

II

Petitioners are Medicare-eligible retirees and a new organization created to represent them. In September 2021, they brought a CPLR Article 78 proceeding seeking to block the City's transition to MAPP. Petitioners moved for a preliminary injunction. The City opposed the motion and cross-moved to dismiss the petition. On October 21, 2021, Supreme Court preliminarily enjoined the City from enforcing the October 31, 2021, opt-out date. On December 14, 2021, Supreme Court extended the preliminary injunction to April 1, 2022.

On January 31, 2022, petitioners moved for "summary judgment."^[FN1] That motion responded to the arguments raised by the City in its cross-motion to dismiss. The next day, the City sent a letter to the court asserting its "strong desire for a determinative ruling as soon as possible in an effort to proceed with the Medicare Advantage Plus Plan as scheduled." On February 4, 2022, the City responded to petitioners' motion. On February 28, 2022, the court held a hearing on the merits of the petition.

By letter dated March 2, 2022, the City raised a new argument, asserting that the City is not statutorily required to pay Senior Care's premiums because the statutory cap is lower than the cost of Senior Care. The City's letter asserted that the statutory cap for Medicare-eligible retirees "would not be the one for the active employee HIP-HMO plan, as Petitioners argue, but the retiree HIP-HMO plan called HIP-VIP (HMO)." Petitioners responded by letter the next day, objecting to the City's argument on timeliness grounds and on the merits.

That same day, Supreme Court denied the City's motion to dismiss and granted the petition in part (see 2022 NY Slip Op 30657[U] [Sup Ct, NY County 2022]). The court permanently enjoined the City "from passing along any costs of the New York City retirees' current plan to the retiree or to any of their dependents, except where such plan rises above the H.I.P.-H.M.O. threshold" (id. at *4). With respect to the statutory cap, the court wrote that it was "the Court's understanding that the threshold is not crossed by the cost of [Senior Care]," though the court's opinion did not identify how the relevant cap was determined, what dollar amount it represented, or what the cost of Senior Care was (id. at *3).

The Appellate Division affirmed the judgment insofar as appealed from by the City. The Court agreed that Administrative Code § 12-126 (b) (1) requires the City to pay the full cost, up to the statutory cap, of any health insurance plan it offers to retirees (210 AD3d 559, 560 [1st Dept 2022]). The Appellate Division held that the question of which plan sets the "statutory cap" was "improperly raised for the first time on appeal" and involved factual issues such as the interpretation of "on a category basis" and the cost of HIP VIP (id.).

We granted respondents leave to appeal (39 NY3d 915 [2023]), and now hold that the Appellate Division correctly determined the City must pay the full cost, up to the statutory cap, of any plan it offers. We therefore affirm.

III

Administrative Code § 12-126 (b) (1) constrains the City's collective bargaining over health insurance (cf. Matter of City of Watertown v State of N.Y. Pub. Empl. Relations Bd., 95 NY2d 73, 79 [2000] ["(B)argaining is mandatory even for a subject 'treated by statute' unless the statute 'clearly preempt[s] the entire subject matter' or the demand to bargain 'diminish[es] or merely restate[s] the statutory benefits'"]). Section 12-126 (b) (1) provides: "The city will pay the entire cost of health insurance coverage for city employees, city retirees, and their dependents, not to exceed one hundred percent of the full cost of H.I.P.-H.M.O. on a category basis." The term "health insurance coverage" is defined in section 12-126 (a) (iv) as "[a] program of hospital-surgical-medical benefits to be provided by health and hospitalization insurance contracts entered into between the city and companies providing such health and hospitalization insurance." The question in this case is whether the City is statutorily required to pay up to the statutory cap for every plan it offers retirees, or whether section 12-126 is satisfied if the City offers one subsidized plan for hospital-surgical-medical benefits and others for which it does not pay at all.

"In matters of statutory interpretation, our primary consideration is to discern and give effect to the Legislature's intention" (Matter of Albany Law School v New York State Off. of Mental Retardation & Dev. Disabilities, 19 NY3d 106, 120 [2012]). Where the text is ambiguous, "we inquire into the spirit and purpose of the legislation by examining the statutory context of the provision as well as its legislative history" (Simmons v Trans Express Inc., 37 NY3d 107, 113 [2021] [internal quotation marks omitted]).

Here, the statutory text is ambiguous. In favor of petitioners' interpretation, "a program of" medical benefits is different from "a plan of" medical benefits. That reading aligns with the City's longstanding practice of offering multiple health insurance plans as part of a program that included options. Additionally, the City refers to the array of health benefits it offers as the "New York City Health Benefits Program," further supporting the idea that "program" refers to all plans offered by the City. Moreover, paragraph (iv) specifies that this program of medical benefits is to be provided by "insurance contracts" between the City and health insurance "companies." The use of the plural for these terms could be read to suggest that "program" would include multiple plans offered by several companies.

In favor of the City's interpretation, the term "program" could also be read refer to the collection of benefits—i.e., hospital-surgical-medical benefits—under a single health insurance plan; not to a variety of insurance plans offered by the City. The use of the plural "contracts" might merely allow the City to obtain one type of benefit (e.g., medical) from one provider and another type of benefit (e.g., surgical) from a different provider. The City's interpretation is somewhat supported by subdivision (b) (2) (iii), which states that when an employee "dies and is enrolled in a health insurance plan, the surviving spouse shall be afforded the right to such health insurance coverage" (Administrative Code § 12-126 [b] [2] [iii]). Reading "health insurance coverage" in that context to include a program of whatever the City offered to all employees appears inconsistent with the use of "such," which evidences an intent to limit the surviving spouse to the plan the decedent had. Similarly, the statutory scheme refers to "health insurance coverage" predicated on Medicare enrollment (see id. § 12-126 [b] [1], [2] [i]-[iv]), which would not cohere for similar reasons if the Court adopted petitioners' interpretation of "program."

Given the lack of clarity in the statutory language, we turn to the legislative history. That history better supports the view that when enacting section 12-126, the City Council and the Mayor intended to require the City to pay, up to the cap, for any plans it offered as part of its health insurance program. That reading is consistent with the Council's contemporaneous use of "program" to refer to the City's "program" of health insurance plans. It is also consistent with the many references to employee and retiree choice in the state-law amendments and City Council resolutions that preceded section 12-126.

The legislative history of section 12-126 began in early 1965, when the City entered into a collective bargaining agreement with the Patrolmen's Benevolent Association, the Uniformed Firemen's Association, the Correction Officers' Benevolent Association and the Transit Policemen's Benevolent Association. The City agreed to offer employees a choice among three private health insurance plans and to pay the full cost of each "not to exceed 100 per cent of the full cost of HIP-Blue Cross (21-day plan) on a category basis." On February 11, 1965, the Board of Estimate (Board) adopted a resolution authorizing the City to enter into contracts with the relevant private insurers (2 Journal of Proceedings of the Board of Estimate of City of New York, from Jan. 29, 1965, to Mar. 11, 1965, at 1123 [Cal. No. 155, Feb. 11, 1965]). Resolution 155's language capping the City's required expenditures at the cost of HIP-Blue Cross (21-day plan) was later incorporated into section 12-126.

But there was one problem: Resolution 155 was unlawful. State law forbade the City from providing health care insurance through contracts with private insurers, and also forbade the City from paying more than 50% of the cost of employee and retiree health insurance. Unlike other municipalities and the State itself, the City could enter into health insurance contracts only with non-profit insurance carriers and could pay only up to 50% of employee/retiree costs. Seeking to make its agreement legal, the City passed a home rule request asking the state legislature to amend the General Municipal Law and General City Law. In July 1965, the State granted the City the authority to (1) contract with private insurance carriers to provide employee and retiree health insurance, and (2) pay up to the full cost of that insurance (see L 1965, ch 782; see General City Law § 20 [29], [29-a]). The amendments were enacted in July 1965 but applied retroactively to authorize contracts entered into beginning on January 1, 1965 (see L 1965, ch 782, § 5).

The Mayor's office described the state-level amendments as a way to broaden the health insurance choices available to New York City employees and retirees. In New York City's memorandum in support of the 1965 amendments, Assistant to the Mayor Paul E. Bragdon wrote that the bill "would be of great benefit to all persons employed by cities and other municipalities because it expands the range of available health insurance coverage for such employees and their families" (Mem of City of NY in Support, L. 1965, ch. 782, at 3 [emphasis added]). In another memorandum, he explained: "The choice of coverage which could be offered under these amended statutes would permit each employee to obtain the form of insurance most advantageous to himself in the light of his personal circumstances" (Revised Mem of City of NY in Support, Bill Jacket, L. 1965, ch. 782, at 18). The Mayor's office asserted that the "primary thrust" of the bill was to allow the city to "institute a choice of health insurance plan" like that previously negotiated for certain City employees (id. at 17).

Resolution 155 did, in fact, provide retirees and active employees with a choice of health insurance plans. The Resolution itself explained that the City intended to give certain employees "a choice among several hospital-surgical-medical insurance plans." In December 1965, the Board of Estimate extended Resolution 155's choice of plans to all City employees and retirees through Resolution 292, explaining: "It is the desire and intent of the City to grant to all its employees . . . a choice of health plans consisting of H.I.P.-Blue Cross, G.H.I.-Blue Cross and Blue Cross-Blue Shield-Major Medical." (Cumulative Annual Index to the Journal of Proceedings of Board of Estimate of City of New York, from Jan. 1 to Dec. 31, 1965, at 8557 [Cal. No. 292, Dec. 16, 1965]).

In 1967, the City Council codified the Board's resolutions. The Council's first attempt to do so would have required the City to "provide and pay for the entire cost of any basic health insurance plan providing for medical and hospitalization coverage" (Council of City of NY Intro No. 430-1967 [emphasis added]). The proposal did not define the phrase "basic health insurance plan," nor did it incorporate any cap on the City's financial obligations.

On September 12, 1967, the Mayor vetoed the proposal, which he said would subject the City to unpredictable financial burdens. He explained that "[t]he phrase 'basic health insurance plan' is nowhere defined, except to say that it does include, but is not limited to, Title XVIII benefits. Thus, the City would be bound to an open-ended obligation to pay for coverages which it cannot now possibly anticipate" (2 Proceedings of the Council of the City of New York from July to December 19, 1967, at 75 [M-389, Sept. 12, 1967]). In response, the City Council enacted Local Law 120 (1967) of City of New York, which added the definition of "health insurance coverage" found in Administrative Code § 12-126 (a) (iv): "[a] program of hospital-surgical-medical benefits to be provided by health and hospitalization insurance contracts entered into between the city and companies providing such health and hospitalization insurance " (see Council of City of NY Intro No. 474-1967). Local Law 120 also incorporated the "statutory cap" from the Board's resolutions, requiring the City to pay only up to "the full cost of HIP-Blue Cross (21-day plan) on a category basis."^[FN2]

In context, Local Law 120's definition of "health insurance coverage" sought to control the City's potential expenditures by limiting retirees to the program of plans offered by the City. Whereas the previous iteration of the law might have required the City to pay the cost of any insurance plan a retiree selected, Local Law 120 requires the City to pay only for the "program" of insurance plans offered by the City. Equally important, Local Law 120 limited the City's exposure by capping its legal obligation at the "full cost of HIP-Blue Cross (21-day plan) on a category basis," thus providing a financial exposure limit that addressed the Mayor's principal concern.

Reading the definition of "health insurance coverage" to extend to the full array of health insurance plans offered by the City also aligns with contemporaneous use of the word "program." Resolution 292, for example, referred to the City's "health insurance program," which at the time consisted of three plans (Cumulative Annual Index to the Journal of Proceedings of Board of Estimate of City of New York, from Jan. 1 to Dec. 31, 1965, at 8561 [Cal. No. 292, Dec. 16, 1965]). Specifically, the Resolution directed the Director of Personnel "to study the effect of the Medicare program on the City's health insurance program and to report to the Board of Estimate . . . his recommendations concerning any adjustments or revisions in the City's program" (id.). Moreover, a 1965 report on behalf of the Mayor requesting funding for the "implementation of choice of health insurance plans" authorized in the Board's resolutions described the array of plans offered by the City as a "program":

"In order to provide a choice of health insurance plans for employees not previously eligible for this program as of January 1, 1966, and to cover the cost of providing such choice to employees . . . it is necessary to provide funds for the implementation of said program" (10 Journal of Proceedings of the Board of Estimate of the City of New York from Nov. 19, 1965, to Dec. 31, 1965, at 8249 [Cal. No. 5, Dec. 16, 1965]).

We are asked to resolve what requirements section 12-126 (b) (1) imposes upon the City. We conclude that the City must pay—up to the statutory cap—for each health insurance plan that it offers employees and retirees.

IV

We are also asked to resolve whether Medicare eligibility is a "category" under section 12-126's "statutory cap." The City has not demonstrated that this question is preserved for our review.

The City first raised the argument that HIP VIP sets the statutory cap for Medicare-eligible retirees in a post-hearing letter to Supreme Court, weeks after it had requested a final determination of the petition "as soon as possible," and on the literal eve of Supreme Court's decision. The record does not establish that Supreme Court was even aware of the parties' submissions when it issued its final determination. The court's decision does not expressly reference the letter or address petitioners' objection to its belated submission. The decision is most clearly read to hold that, on the motion before it, the court did not need to determine what the statutory cap was, because of the court's "understanding" that the cost of Senior Care was below the statutory cap however it was determined—a conclusion Supreme Court could have drawn based on the undisputed facts at the time of the hearing. We thus cannot conclude that Supreme Court considered the issue raised in the letters as timely or in any way ruled on the issue in its decision.

The order of the Appellate Division should be affirmed, with costs.

Order affirmed, with costs. Opinion by Chief Judge Wilson. Judges Rivera, Garcia, Singas, Cannataro, Troutman and Halligan concur.

Decided December 17, 2024

Footnotes

Footnote 1: Although Supreme Court held that the summary judgment motion was not "legally permissible in this proceeding," the court "reviewed the papers submitted for [the motion] as being incorporated to the 2 motion sequences that were proper."

Footnote 2: In 1984, the City Council amended section 12-126, replacing "HIP-Blue Cross (21-day plan)" with "H.I.P.-H.M.O" (Local Law No. 28 [1984] of City of NY). A note in the legislative history explains: "The H.I.P./Blue Cross (21 day plan) no longer is used; the correct designation for this health insurance coverage is H.I.P./H.M.O." (Mem of Martha K. Hirst, Assistant Legislative Representative to the City Council, Local Law Bill Jacket, Local Law No. 28 [1984] of City of NY).

The New York State and Local Employees Retirement System is now scheduling In-Person Consultations in its New York City Office

The New York State and Local Retirement System [NYSLRS] office in New York City  has reopened for in-person consultations. 

If you’re a NYSLRS member nearing retirement or need help filing for a disability retirement, you can make an appointment to review your benefits and get answers to any questions you may have.

Appointments are also available by phone and at our offices in Albany, Buffalo and Hauppauge. Click  Read More... for additional information.

Retirement System denies petitioner's application for accidental disability retirement benefits after determining that the incident was not an "accident" within the meaning of the New York State Retirement and Social Security Law

In this appeal the Court of Appeals sustained the judgment of the Appellate Division holding that "Substantial evidence supports the [New York State and Local Employees' Retirement System's (NYSLERS)] determination" that the applicant for accidental disability retirement [ADR] benefits. The court further noted that New York State case law "makes clear, an incident caused by 'a risk inherent in the petitioner's regular [job] duties' is not an accident for purposes of ADR benefits".

Petitioner, a former police officer, was injured when, on routine patrol. Petitioner testified that the hole had been dug for a sewer line on the property involved and that he knew at the time that the house was under construction. The Retirement System had denied Petitioner's application for ADR on the ground that the incident was not an "accident" within the meaning of Retirement and Social Security Law §363 because it "resulted from a risk inherent in petitioner's job".

In the words of the Court of Appeals, "in determining whether an accident occurred, [NYSLRS] considered the duties of Petitioner's particular employment", and whether the incident was caused by "an inherent risk of [those] regular duties".

On this record the Court of Appeals said it concluded that NYSLRS "reasonabl[y] and plausibl[y]" determined that Petitioner's risk of being injured by an unseen hazard while investigating a potential crime in the dark "was inherent in his ordinary job duties" and affirmed the Appellate Division's judgment sustaining NYSLRS' determination.

Click HERE to access the Court of Appeals' decision posted on the Internet.

School District's plan to install solar panels on school property found consistent with a condition in a deed requiring that the property be used for school purposes

In 1957, the Rockland County Council Inc., Boy Scouts of America [Boy Scouts] sold a parcel of real property located in the Town of Stony Point to the Board of Education of Union Free School District No. 5 of the Town of Stony Point [UFSD No, 5]. 

In 2020, the North Rockland Central School District [NRCSD], "the alleged successor" in interest to UFSD No, 5, began collecting proposals for the installation of a solar panel array on a portion of said real property. The Greater Hudson Valley Council of Boy Scouts [Plaintiff], successor to Boy Scouts, challenged using the property to install solar panels contending that the deed selling the property contained a provision, stating in pertinent part, that in the event the subject property was at any time no longer to be used for school purposes, the [Boy Scouts] would have the option of repurchasing a certain portion of the property for the price of $1,000 per acre.

In 2021, the Plaintiff, as successor in interest to Boy Scouts, commenced an action for a judgment declaring that NRCSD's plan to install the solar panels violated the deed because it was inconsistent with the provision mandating that [1] the property be used for school purposes, and [2] requiring the School District to sell the property to the Plaintiff for the price of $1,000 per acre. The complaint also sought monetary damages based on the same alleged violation of the deed.

NRCSD moved, pursuant to CPLR 3211(a), to dismiss Plaintiff's complaint. Supreme Court, among other things, granted NRCSD motion to dismiss Plaintiff's complaint and Plaintiff appealed the Supreme Court's ruling. 

The Appellate Division affirmed Supreme Court's decision, explaining:

1. "On a motion to dismiss a complaint pursuant to CPLR 3211(a)(7), the court must accept all facts as alleged in the pleading to be true, accord the plaintiff the benefit of every favorable inference, and determine only whether the facts as alleged fit within any cognizable legal theory";

2. "Where evidentiary material is submitted and considered on a motion to dismiss a complaint pursuant to CPLR 3211(a)(7), and the motion is not converted into one for summary judgment, the question becomes whether the plaintiff has a cause of action, not whether the plaintiff has stated one and, unless it has been shown that a material fact as claimed by the plaintiff to be one is not a fact at all and unless it can be said that no significant dispute exists regarding it, dismissal should not eventuate"; and

3. "[U]pon a motion to dismiss for failure to state a cause of action, a court may reach the merits of a properly pleaded cause of action for a declaratory judgment where no questions of fact are presented [by the controversy]. Under such circumstances, the motion to dismiss the cause of action for failure to state a cause of action should be treated as one seeking a declaration in [the] defendant's favor and treated accordingly".

Here, opined the Appellate Division, Supreme Court properly determined that NRCSD was entitled to a judgment declaring that its proposed use of the property does not violate the deed, and properly granted that branch of NRCSD's motion to dismiss so much of the complaint as sought monetary damages. NRCSD, said the court, "is authorized to provide, among other things, "fuel ... and other necessaries for the use of said schools", citing Education Law §1709[14], and demonstrated that "it planned to install solar panels in accordance with the 'K-Solar' program to generate energy for school purposes".

Accordingly, the Appellate Division ruled that Supreme Court had "properly determined that no issue of fact regarding the use of the property for school purposes was presented" and remitted the matter to the Supreme Court for entry of a judgment declaring that NRCSD's proposed use of the property does not violate a condition in the deed requiring that the property be used for school purposes.

Click HERE to access the Appellate Division's decision posted on the Internet.

Courts sustain retirement system's determination placing member transferring into its system in its Tier 6

Supreme Court denied Plaintiff's petition seeking to annul the determination of the Metropolitan Transportation Authority [MTA] and the MTA Defined Benefit Pension Plan [MTADBPP] placing Plaintiff in Tier 6 in the MTACBPP. The Appellate Division unanimously affirmed the Supreme Court's decision, without costs.

MTA had denied Plaintiff, an officer with the MTA Police Department, pension credit for his prior nonuniformed service as a traffic enforcement agent with the New York City Police Department [NYPD]. 

Citing Matter of Peckham v Calogero, 12 NY3d 424, the Appellate Division found that MTA's decision had a "rational basis", noting that letters from the New York City Police Pension Fund [NYCPPF] show that Plaintiff became a member of the NYCPPF when he joined the NYPD as a uniformed police officer on January 9, 2013 and the MTADBPP plan classifies members who joined MTADBPP on or after April 1, 2012, as Tier 6. 

The Appellate Division opined that the MTADBPP reasonably interpreted the provision in issue to include Plaintiff's service as a uniformed officer but exclude his nonuniformed service as a traffic enforcement agent with NYPD. 

Noting that NYPD had credited Plaintiff's nonuniformed service and granted him Tier 2 status in the NYCPPF, the Appellate Division observed that Plaintiff cited no statute or provision of the MTADBPP "requiring MTA to do the same".

Further, explained the court, Retirement and Social Security Law §645 does not apply in this instance because MYADBPP is not among the enumerated "public retirement system[s]" between which the statute authorizes the cross-honoring of a member's membership starting date.

Click HERE to access the Appellate Division's decision posted on the Internet.