Selected Reports issued by the Office of the State Comptroller during the week ending February 28, 2016

Selected Reports issued by the Office of the State Comptroller during the week ending February 28, 2016

Click on text highlighted in color to access the full report

Former Director of the Putnam County Department of Consumer Affairs enters guilty plea for stealing money she accepted to satisfy county-issued fines

Comptroller Thomas P. DiNapoli and Attorney General Eric T. Schneiderman announced the guilty plea of Jean Noel, the former Director of the Putnam County Department of Consumer Affairs, for stealing money from Putnam County. Ms. Noel was arrested after a joint investigation by the State Police, the Office of the New York State Comptroller, and the Attorney General’s Office revealed Ms. Noel’s theft of cash that she accepted from local contractors to satisfy county-issued fines. Ms. Noel entered a guilty plea before the Honorable Joseph J. Spofford, Jr. in Carmel Town Court to the class “A” misdemeanor charge of petit larceny under Penal Law § 155.25. As part of a plea agreement, Ms. Noel agreed to terminate her employment with Putnam County, pay restitution, and was sentenced to a one-year conditional discharge.

http://www.osc.state.ny.us/press/releases/feb16/022316.htm?utm_source=weeklynews20160228&utm_medium=email&utm_campaign=022316release

Former Tupper Lake Volunteer Fire Department Treasurer pleaded guilty to grand larceny

Former Tupper LakeVolunteer Fire Department Treasurer Timothy J. Brown pleaded guilty to grand larceny and agreed to repay the $30,000 he stole for private vacations revealed in an auditand investigation by State Comptroller Thomas P. DiNapoli.

http://www.osc.state.ny.us/press/releases/feb16/022416b.htm?utm_source=weeklynews20160228&utm_medium=email&utm_campaign=022416brelease

School District Audits Released

Alexander Central School District - Financial Condition

Cazenovia Central School District - Financial Condition

Rondout Valley Central School District - Financial Management

Silver Creek Central School District – Financial Condition

Wallkill Central School District – Financial Management

Comptroller rejected contracts valued at $2.64 billion and 4,200 payments valued at $2.7 million due to fraud, waste or other improprieties in January

State Comptroller Thomas P. DiNapoli announced his office approved 1,436 contracts valued at $4.53 billion and approved 1.9 million payments worth $10.2 billion in January. His office also rejected 170 contracts and related transactions valued at $2.64 billion and 4,200 payments valued at $2.7 million due to fraud, waste or other improprieties.

http://www.osc.state.ny.us/press/releases/feb16/022516a.htm?utm_source=weeklynews20160228&utm_medium=email&utm_campaign=022516arelease

Department of Health (DOH) needs to fix problems and delays with how it is assessing fines to nursing homes after violations are found

The state Department of Health (DOH) needs to fix problems and delays with how it is assessing fines to nursing homes after violations are found, according to an auditreleased by State Comptroller Thomas P. DiNapoli. While DOH is frequently inspecting nursing homes and acting quickly on serious complaints, auditors found that some facilities had repeated violations that escalated into more serious problems with limited consequences.

http://www.osc.state.ny.us/press/releases/feb16/022216.htm?utm_source=weeklynews20160228&utm_medium=email&utm_campaign=022216release

State may face increasing budgetary challenges in coming years as revenue growth

is expected to slow

New York state’s fiscal position has improved, but the state may face increasing budgetary challenges in coming years as revenue growth is expected to slow and billions of dollars in settlement money are spent, according to an analysisof the $154.6 billion Executive Budget released by State Comptroller Thomas P. DiNapoli. This report, prepared each year following the release of the Executive Budget, provides information to assist in the evaluation of the 2016-17 proposal.

http://www.osc.state.ny.us/press/releases/feb16/022416a.htm?utm_source=weeklynews20160228&utm_medium=email&utm_campaign=022416arelease

Fiscal Stress Monitoring System – Reports concerning selected villages

State Comptroller Thomas P. DiNapoli’s Fiscal Stress Monitoring System has identified 18 villages in New Yorkin some level of fiscal stress. For 2015, three villages have been classified as in “significant fiscal stress,” four in “moderate fiscal stress,” and 11 as “susceptible to fiscal stress.” Last year, a total of 22 villages were listed in fiscal stress.

http://www.osc.state.ny.us/press/releases/feb16/022516.htm?utm_source=weeklynews20160228&utm_medium=email&utm_campaign=022516release

Audit finds non-profit provider of supportive housing for New York City’s Dept. of Health and Mental Hygiene (DOHMH) overbilled the agency

A non-profit provider of supportive housing for New York City’s Dept. of Health and Mental Hygiene (DOHMH) overbilled the agency by $1 million according to an auditreleased by New York State Comptroller Thomas P. DiNapoli. DOHMH’s weak oversight of the Center for Urban and Community Services made the overpayments possible and raises concerns about potential overpayments to other vendors. 

http://www.osc.state.ny.us/press/releases/feb16/021916a.htm?utm_source=weeklynews20160228&utm_medium=email&utm_campaign=021916arelease

State Comptroller and the Church of England’s investment fund challenge Exxon’s attempt to silence questions on climate change

Investors, led by New York State Comptroller Thomas P. DiNapoli and the Church of England’s investment fund, the Church Commissioners, asked the Securities and Exchange Commission to reject ExxonMobil’s plan to block a shareholder proposal for information on how the company will be impacted by public policies seeking to rein in climate change.

http://www.osc.state.ny.us/press/releases/feb16/022416.htm?utm_source=weeklynews20160228&utm_medium=email&utm_campaign=022416release

 
State’s January receipts $4.8 billion higher than initially projected

New York state collected $126.6 billion in receipts from April through January, which was $582.3 million higher than the Division of the Budget’s latest projections and $4.8 billion higher than initial projections, according to the monthly state cash report issued by New York State Comptroller Thomas P. DiNapoli.

http://www.osc.state.ny.us/press/releases/feb16/022216a.htm?utm_source=weeklynews20160228&utm_medium=email&utm_campaign=022216arelease

Governor announces recent administration appointments

Governor announces recent administration appointments

Source: Office of the Governor

On February 26, 2016, Governor Andrew M. Cuomo announced the appointment of the individuals listed below to his administration.

Jamie Malanowski has been appointed Senior Speechwriter for the Executive Chamber. He brings with him 30 years of experience in writing and editing. Most recently, Mr. Malanowski was the Lead Writer for the award-winning Disunion series in The New York Times, and the author of the biography Commander Will Cushing, Daredevil Hero of the Civil War. He has served as the National Editor of Spy and was a member of the founding staff; Senior Editor at Esquire; and Senior Editor at Time, among other positions. He also published two novels and more than 500 articles in more than thirty magazines, newspapers and websites in the United States and Great Britain. In 2012, he was the recipient of the Folio Award (the ‘Eddie’) for Magazine Feature Writing. He holds an M.A. from the University of Pennsylvania and a B.A. from LaSalle College.

Matthew Pennello has been appointed Special Assistant for Legislative Affairs. Mr. Pennello has worked in public service since 2010, most recently as the Governor’s Regional Representative for the Mohawk Valley. Prior to working at the Executive Chamber, he was the Assistant for Central New York Intergovernmental Affairs and Federal Policy for the NYS Department of Labor. He has also worked in the Department of Law of the Syracuse Corporation Counsel. A Central New York native, Mr. Pennello  received his B.A. in Political Science from SUNY Cortland, where he earned a Research Fellowship studying the effect of terrorism on modern constitutional theory.

Melissa R. Quesada has been appointed Director of Latino Affairs, after having served earlier as Assistant Deputy Commissioner for Worker Protection at the Department of Labor where she was responsible for coordinating the planning and implementation of multi-agency statewide enforcement and outreach efforts. While at the Department Ms. Quesada also served as the Director of Outreach for the Governor’s Unemployment Strike Force, cultivating relationships with local businesses, targeted constituencies, elected officials and community organizations. Prior to that, Ms. Quesada served as a Special Associate for the New York City Law Department. She holds a J.D. from Hofstra University School of Law and a B.A. from Binghamton University.

Mary Beth Woods has been appointed Executive Director of the NYS Workers’ Compensation Board, after serving as the Acting Director. Ms. Woods has worked at the Workers’ Compensation Board for over 15 years, and held titles including Deputy Executive Director, Director of Financial Administration and Director of Licensing. From 1990-1998, Ms. Woods worked at the NYS Division of the Budget, where she was an Associate Budget Examiner. She was also a Supervising Senior Accountant at KPMG Peat Marwick. Ms. Woods is currently a Board Member of the Compensation Insurance Rating Board and has previously served as the Chair of the Governor’s Task Force on Group Self Insurance. She earned a B.S. in Business Administration from Siena College and is a Certified Public Accountant in New York State.

Justin Bernbach has been appointed Chief Government Affairs & Community Relations Officer at the MTA. Most recently, Mr. Bernbach was Northeast Director of Government Relations at HNTB, a national transportation design and program management company. Previously he was the Managing Director of State and Community Affairs for American Airlines. In this role, he managed state and local government relations for American Airlines in New York, New Jersey, Connecticut and Massachusetts. Prior to his role there, he was the Deputy Director of Communications at the Phoenix House Foundation, the nation’s largest nonprofit substance abuse treatment organization. Mr. Bernbach also served as the New York City-based Press Officer for the New York State Assembly from 2002-2004. He holds an M.P.P. from Harvard University’s John F. Kennedy School of Government and a B.A. in Government and Economics from Cornell.​

John Lockwood has been appointed Special Counsel to the Commissioner for Ethics, Risk and Compliance for the Office of Children and Family Services. Most recently he served as the First Deputy County Attorney for the Family Court Unit at the Schenectady County Attorney’s Office. He also recently served as a Village Trustee for the Village of Scotia, N.Y. Prior to joining the Schenectady County Attorney’s Office, Mr. Lockwood was an Assistant Public Defender in the Schenectady County Public Defender’s Office. He will be replacing Barbara Kruzansky who will become Director of the Office of Agency Performance. He holds a J.D. from Roger Williams University School of Law and a B.S. from Salve Regina University.

Peggy Rodriguez has been appointed Regional Representative for the Mohawk Valley. Previously she served as a Special Assistant for Labor Regional Affairs at the New York State Department of Labor. She has held numerous positions at the University of Nevada, Las Vegas, including Victim Advocate for the Jean Nidetch Women’s Center at UNLV, and Research Assistant at the University’s Boyd Law School. Ms. Rodriguez holds a B.A in Political Science from UNLV.

Procedural requirements with which a resident of a school district must comply when seeking to remove a school officer from his or her position

Procedural requirements with which a resident of a school district must comply when seeking to remove a school officer from his or her position

Decisions of the Commissioner of Education, Decision #16,874

A resident [Resident] of the school district [District] asked the Commissioner of Education to remove the Superintendent of Schools [Superintendent] from the position. Resident alleged certain conduct that occurred while Superintendent was superintendent at another school district and alleged certain conduct while Superintendent of the District in support of the request for Superintendent’s removal from the position.

The Commissioner explained that a member of the board of education or a school officer may be removed from his or her office pursuant to Education Law §306 when it is proven to the satisfaction of the Commissioner that the individual who is targeted for such removal “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.”

The Commissioner ruled that Resident’s petition must be dismissed for procedural reasons. The Commissioner explained that Resident failed to include the notice requirements set out in  8 NYCRR 277.1(b) of the Commissioner’s regulations.

This provision requires that the notice of petition specifically advise a respondent that an application is being made for respondent’s removal from office.  Resident failed to comply with the notice requirements of  §277.1(b), but instead used the notice prescribed in §275.11(a).* The Commissioner pointed out that a notice of petition seeking the removal of an officer which fails to contain the language required by §277.1(b) of the Commissioner’s regulations is fatally defective and does not secure jurisdiction over the intended individual or individuals.

Notwithstanding the dismissal of Resident’s petition as a result of its procedural defect, the Commissioner addressed the Superintendent’s request that she issue a certificate of good faith pursuant to Education Law §3811(1)* for the purpose of authorizing the school board to indemnify the Superintendent for legal fees and expenses incurred in defending this proceeding.

The Commissioner said that it is appropriate to issue such a certification unless it was established on the record that the individual seeking such a certification acted in bad faith.

As Resident’s application was dismissed on procedural grounds and there had been no finding that Superintendent acted in bad faith, the Commissioner approved the request “solely for the purpose of Education Law §3811” as Superintendent “appears to have acted in good faith.”

* 8 NYCCR §275.11(c) requires that in the event the petitioner is seeking removal of a school officer, in addition to the notice required by 8 NYCRR §275.11(a) “the notice provisions of section 277.1 of this Title shall also apply.”

** §3811(1) sets out the procedures for seeking such indemnification but provides that an individual is not eligible for indemnification for legal fees and expenses incurred as a result of a criminal prosecution or an action or proceeding brought against him or her by a school district or board of cooperative educational services.

The decision is posted on the Internet at:

http://www.counsel.nysed.gov/Decisions/volume55/d16874

The employment history of an employee found guilty of one or more disciplinary charges may be considered in setting the disciplinary penalty to be imposed

The employment history of an employee found guilty of one or more disciplinary charges may be considered in setting the disciplinary penalty to be imposed

OATH Index #2743/15

A sergeant who worked the overnight tour at a juvenile detention center employed by ACS was charged with multiple employment infractions spanning nine months. Two supervisors testified at trial that the sergeant failed to complete work duties, including completing reports, attending meetings, properly signing out equipment, wearing his uniform, and responding to supervisors’ requests.

OATH Administrative Law Judge John B. Spooner found the proof sufficient to sustain most of these charges. Based on the sergeant’s three prior disciplinary incidents, generally poor work evaluations, and recent egregious conduct, ALJ Spooner recommended that he be terminated from his position.

In Scott v Wetzler, 195 AD2d 905, the court rejected Scott’s argument that he was denied due process because the Section 75 hearing officer allowed evidence concerning his performance evaluations to be introduced during the disciplinary hearing. The court said that “such evidence was relevant to the determination of an appropriate penalty,” noting that Scott was allowed an opportunity to rebut these records and to submit favorable material contained in his personnel file. Another decision frequently cited as authority for this proposition is Bigelow v Trustees of the Village of Gouverneur, 63 NY2d 470.

The general rule applied by the courts when asked to determine if the employee’s personnel record was lawfully considered in setting the disciplinary penalty is that the employee’s personnel records may be considered in setting a disciplinary penalty, provided the employee is advised that this will be done and is given an opportunity to comment on the contents of his or her personnel file. Although the employee’s consent is not required in order for the hearing officer or arbitrator to consider the employee’s personnel record in determining an appropriate penalty to recommend or determine, it is essential that he or she be notified of that provide the opportunity to review and comment on his or her personnel record.

The decision is posted on the Internet at:

http://archive.citylaw.org/wp-content/uploads/sites/17/oath/15_cases/15-2743.pdf

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A Reasonable Penalty Under The Circumstances - a 618-page volume focusing on New York State court and administrative decisions addressing an appropriate disciplinary penalty to be imposed on an employee in the public service found guilty of misconduct or incompetence. For more information click on http://booklocker.com/7401.html

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In a lawsuit brought by a public official alleging defamation, the official must show actual malice on the part of the alleged defamer in order to prevail

In a lawsuit brought by a public official alleging defamation, the official must show actual malice on the part of the alleged defamer in order to prevail

Eastwood v Hoefer, 2016 NY Slip Op 00674, Appellate Division, Second Department

Kenneth W. Eastwood, the former Superintendent of the Oswego City School District, sued Francis E. Hoefer, then a member of the Board of Education, to recover damages for defamation. Eastwood alleged the Hoefer had defamed him when he published three statements on an Internet website.

The first alleged defamatory statement was that "[i]t wasn't until [Eastwood] packed his bags for Middletownthat the Oswego School District discovered that our reserve accounts had been depleted." The second allegedly defamatory statement was that there had been "allegations of [Eastwood’s] abuse of a young honor student and [a] subsequent cover up." The third allegedly defamatory statement was that the Eastwood "use[d] . . . his position to acquire enhanced grades for his daughter."

Following a jury trial, the jury returned a verdict in favor of Eastwood, finding that all three of the statements were defamatory and that Hoefer had published the three statements with actual malice.

In the appeal that followed the Appellate Division, noted that Eastwood did not dispute the characterization that he was a public figure. Accordingly, said the court, this case was governed by the rule of New York Times Co. v Sullivan, 376 US 254, in which the Supreme Court of the United States interpreted the First Amendment to the United States Constitution as embodying "the principle that debate on public issues should be uninhibited, robust, and wide-open, and that it may well include vehement, caustic, and sometimes unpleasantly sharp attacks on government and public officials."

The Times decision, said the court, bars a plaintiff "from recovering damages for a defamatory falsehood relating to his official conduct unless he proves that the statement was made with actual malice -- that is, with knowledge that it was false or with reckless disregard of whether it was false or not" and "[T]he appellate court must make a de novo review of the entire record and determine whether the proof before the trial court supports the finding of actual malice with convincing clarity."*

Contrary to Hoefer’s contention, the Appellate Division found that “record demonstrates, by clear and convincing evidence, that the third statement he made was made with actual malice.” However, the court, upon its independent review of the record, concluded that the evidence does not establish, with "convincing clarity," that Hoefer published the first and second statements with actual malice.

Accordingly, the court ruled that Supreme Court properly granted Hoefer’s motions,  which were made pursuant to CPLR 4404(a),** to set aside so much of the verdict as was in favor of the Eastwood with respect to Hoefer’s first and second statements.

As to the third statement, the Appellate Division said that the Supreme Court properly denied that branch of Eastwood’s CPLR 4404(a) motion to set aside so much of the verdict as was in favor of Eastwood with respect to the third statement.

* See Sweeney v Prisoners' Legal Servs. of N.Y., 84 NY2d 786

** As relevant here, a motion by a party after a trial by jury to set aside all or part of the jury's verdict. 

The decision is posted on the Internet at:

http://www.nycourts.gov/reporter/3dseries/2016/2016_00674.htm