25 Şubat 2013 Pazartesi

Selected reports and information published by New York State's Comptroller Thomas P. DiNapoli

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Selected reports and information published by NewYork State's Comptroller Thomas P. DiNapoliIssued during the week February 17, 2013   [Click on the caption to access the fullreport]
DiNapoli Announces $250 Million Private EquityCo–Investment Allocation for Emerging Manager Program

Comptroller Thomas P. DiNapoli announced Friday that the New York State CommonRetirement Fund (Fund) has allocated $250 million to Farol Investment Advisersfor private equity co–investments with the Fund’s emerging managers program.The announcement came as DiNapoli hosted the sixth annual emerging managerconference in Albany, New York.

Comptroller DiNapoli and A.G. SchneidermanAnnounce Felony Plea of Former Senator Shirley Huntley

Comptroller Thomas P. DiNapoli and Attorney General Eric T. SchneidermanWednesday announced that former New York Senator Shirley L. Huntley has pleadedguilty to Tampering with Physical Evidence, an E Felony, for falsifyingevidence in an effort to obstruct the investigation into the theft of a grantshe sponsored for a sham non–profit entity, the Parent Workshop.

DiNapoli: Medicaid System Flaws Led to $7.8Million in Overpayments

The Department of Health’s Medicaid program overpaid health care providers by$7.8 million over a six month period because of flaws with its eMedNY computersystem, according to a reportreleased Thursday by New York State Comptroller Thomas P. DiNapoli. Auditorsfrom the Comptroller’s Office recouped about $7.5 million of the overpaymentsand took steps to prevent future payment errors.

DiNapoli: Millions Sat Idle in MTA BankAccounts

The Metropolitan Transportation Authority (MTA) held over $90 million in fundsand bank accounts that could have been used to meet its budgeted costs,according to an auditreleased Wednesday by New York State Comptroller Thomas P. DiNapoli. Auditorsfound the MTA did a poor job managing its cash–on–hand, had excess bankaccounts and no set targets for short–term investing of billions of dollars.

DiNapoli: Executive Budget Continues SpendingRestraint in the Face of a Challenging Economy

The 2013–14 Executive Budget continues the state’s effort to move towardlong–term structural balance and reduces projected out–year budget gaps whileaddressing infrastructure needs, including the recovery from Hurricane Sandy,according to a reportreleased Wednesday by State Comptroller Thomas P. DiNapoli.

DiNapoli: Growth of Local Sales TaxCollections Slows

Local sales tax collections in New York grew by $450 million in 2012, anincrease of only 3.3 percent from 2011, according to a reportissued Thursday by State Comptroller Thomas P. DiNapoli. New York City had aslightly better growth rate of 3.5 percent.

Comptroller DiNapoli Releases School Audits

New York State Comptroller Thomas P. DiNapoli Thursday announced his officecompleted the following audits:
the CortlandEnlarged Central School District; and,
the PawlingCentral School District.

Comptroller DiNapoli Releases Municipal Audits

New York State Comptroller Thomas P. DiNapoli Thursday announced his officecompleted the following audits:
the Villageof Huntington Bay;
the Townof Long Lake;
the Villageof Munnsville; and,
the Cityof North Tonawanda.

Seniority for the purposed of layoff held to include both a teacher's "actual full-time service rendered" and his or her full-time regular substitute service in the tenure area

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Seniority for thepurposed of layoff held to include both a teacher's "actual full-time servicerendered" and his or her full-time regular substitute service in the tenurearea
Education Law §2510[2] provides that a school district thatabolishes a teaching position for economic reasons must discontinue "theservices of the teacher having the least seniority in the system within thetenure of the position abolished." As this decision demonstrates, anincorrect determination with respect to which teacher is “least senior” for the purposes of layoff couldprove expensive to the school district.
A teacher [Teacher] challenged the Board of Education’s determinationthat she was the least senior teacher in the foreign language tenure area. Teacher contended that the Board’s determination was affected by an error of law andwas arbitrary and capricious. As redress, Teacher sought "senioritycredit" for certain services as a substitute teacher that she had rendered to the District,reinstatement to her former position, and "restitution" for damagesthat she allegedly sustained as a result of the School Board's determination,which, in effect, terminated her employment.
The Appellate Division annulled the Board’sdetermination with respect to Teacher’s seniority for the purposes of layoffand it was [1] directed to award seniority credit to her for her service betweenNovember 6, 2006 through and including February 10, 2010, and [2] directed to reinstate her to her position asa full-time probationary teacher in the foreign language tenure area with backpay and benefits.* 

The significant issue in this actionwas the criterion used in determining a teacher's seniority, i.e., the"actual full-time service rendered" including full-time regularsubstitute service in a particular tenure area prior to his or her probationaryappointment in that same area** and the rationale for equating full-timesubstitute service with full-time probationary service for seniority purposes.

The Appellate Division explained that employment as a regular substitute"constitut[es] employment by the board of education on a permanentbasis" and is "equivalent to service rendered pursuant to a probationaryappointment in contrast to an 'itinerant' or per diem substituteassigned on a temporary, as-needed basis" for which the educator does not accumulate seniority for the purposes of layoff.
The court noted that the District had argued that Teacher’sresignation severed her employment relationship with the District and that shetherefore lost all seniority accumulated prior to that time notwithstanding thefact that Teacher had agreed to "resign" in exchange for theDistrict's promise to immediately rehire her as a substitute teacher and toreappoint her to a new full-time probationary position upon her obtaining permanent certification to teach. The Appellate Division disagreed with the District's theory as to the effect of Teacher's resignation under the circumstances.
Although the District was correct that a teacher whovoluntarily severs all of his or her professional relationship with a schooldistrict through retirement or resignation forfeits his or her seniority rightsunder Education Law §2510, the Appellate Division questioned whether Teacher’sresignation, under the relevant facts in this case, could be deemed to have been voluntary,noting that:
1 "Public policy" favors the protection of an employees' seniority rights;
2. Although an employee may relinquish his or her seniorityrights by resigning or retiring, such a relinquishmentmust be knowing and voluntary, i.e., the employee must take "affirmativesteps" to terminate all aspects of his or her employment by a schooldistrict and in the absence of a specific contrary intent, an employee whomerely assents to being reassigned to a different title within the same tenurearea — even under the guise of a resignation — is not deemed to have"resigned" for purposes of determining his or her seniority credit so long as the title towhich he or she is reassigned is otherwise appropriate for inclusion in determining seniority credit in the tenure area.
3. Neither the District nor Teacher complied with the requirementsof Education Law §3019-a ("Notice of termination of service byteachers"), which governs the formal resignation and termination ofprobationary teachers.
4. The record was devoid of any intent or affirmative act byTeacher to sever all aspects of her employment relationship with the Districtand thereby relinquish her seniority rights.
5. Unlike the severance cases relied upon by the School District, the circumstances in this case did not evince an intent by eitherTeacher or the District to sever their professional relationship but instead thearrangement allowed Teacher to continue teaching in the District while herpermanent certification was pending.
6. There was no actual break in Teacher's service to theDistrict as a result of her "resignation" as the resignation waseffective at the end of the day on October 1, 2009 and the next day shereturned to the same classroom to teach the same subject to the same studentsduring the same hours.***
Accordingly, as noted earlier, the Appellate Divisionmodified Supreme Court’s ruling “on the law,” and granting Teacher’s petitionin part, annulled the District's determination, awarded Teacher seniority creditfor the period from November 6, 2006 through February 10, 2010, and directed the District to reinstate Teacher to her former position as a probationary teacher in the foreign languagetenure area, with back pay and benefits.
* N.B.The decision notes that Supreme Court held that the District was"justified in giving more seniority credit to another teacher because thatteacher had obtain … permanent certification at an earlier date.” The AppellateDivision said that "[s]eniority [for the purposes of layoff] … relatesonly to length of service" and considerations such as prior experience,training, or educational qualifications are not properly included therein.”
** Teacher’s service with the School District for thepurposed of determining her seniority within the meaning of §2510[2] of theEducation Law is set out in some detail in the Appellate Division’s decision.
*** The Appellate Divisioncharacterized Teacher’s "resignation" as essentially "a legal fictiondesigned to allow Teacher to continue her duties as a full-time Spanish teacherwhile ensuring the District's compliance with the Education Law, whichprohibits a school district from employing uncertified teachers."
The decision is posted on the Internet at:http://www.courts.state.ny.us/reporter/3dseries/2013/2013_00867.htm
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The Layoff, Preferred List andReinstatement Manual - a 645 page e-book reviewing the relevantlaws, rules and regulations, and selected court and administrative decisions isavailable from the Public Employment Law Press. Click On http://nylayoff.blogspot.com/ foradditional information about this electronic reference manual.
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Public entities may have monies being held in State Comptroller's Abandoned Property Fund

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Public entities may havemonies being held in State Comptroller's Abandoned Property Fund
The State’s AbandonedProperty Law requires banks, insurance companies, utilities, and other businessesto turn dormant savings accounts, unclaimed insurance and stock dividends, andother inactive holdings over to the State. If there has been no activity in theaccount for a set period of time, usually between two and five years, the moneyor property is considered unclaimed or abandoned. Although Section 1402 of theAbandoned Property Law has a $20 threshold for such listing, the Comptrolleruses a "$50 threshold” for the listings on his Internet website.

In these times of financial difficulties, every penny counts -- so belowis a sample listing of various public entities currently listed as havingmonies being held by the State Comptroller in the Abandoned Property Fund andwhich may be claimed by the rightful owner. The Comptroller's dedicated website for making such searches is at: http://www.osc.state.ny.us/ouf/index.htm    

How much money is being held in the Fund? TwelveBillion Dollars, give or take a few million.
A search of the Comptrollerweb site at for “nys dep” resulted in 15 matches, included those listedbelow. 

Name Address Reported By
NYS DEPARTMENT OF STATE CERTIFICATION UNIT 123 WILLIAM ST NEW YORK NY 10038 ROPES & GRAY LLP

NYS DEPARTMENT OF STATE DIVIS 99 WASHINGTON AVENUE, 6TH FLR ALBANY NY 12231 STATE FARM FIRE & CASUALTY CO

NYS DEPARTMENT OF TAXATION AND FINANCE P O BOX 4127 BINGHAMTON NY 13902 NATIONAL FINANCIAL SERVICES LLC

Otherpublic employers and employee organizations are listed by the Comptroller ashaving monies being held in the Abandoned Property Fund as well, although itmay take some detective work as the organization’s “official name” may not bethe one being used by the depositing organization. 
Forexample, a search for “County of”resulted in 129 matches such as:



COUNTY OF COLUMBIA PO BOX 458 HUDSON NY 12534 EMPIRE BLUE CROSS & BLUE SHIELD

COUNTY OF CORTLAND 60 CENTRAL AVE PO BOX 5590 NY 13045  NATIONWIDE RETIREMENT SOLUTIONS 

COUNTY OF DUCHESS DE 60 MARKET ST POUGHKEEPSIE NY 12601 TELECHECK SERVICES INC

A search by county name isalso possible, such as the following results using the search term “Yates Co”-


YATES CO DEP OF SOCI 110 COURT ST PENN YAN NY 14527 SUBURBAN PROPANE PARTNERS LP

YATES CO DEPT SOCIAL 110 COURT STREET PENN YAN NY 14527 AMERIGAS PROPANE LP

YATES CO FIRE DEPT 227 E MAIN ST PENN YAN NY 14527  PEARSON EDUCATION INC

YATES CO MENTAL HEALTH CLINIC 431 LIBERTY ST PENN YAN NY 14527 TRAVELERS INDEMNITY CO

YATES CO SOIL WATECONSERVATION 110 COURT STREET PENN YAN NY 14527 MERCHANTS MUTUAL INSURANCE CO


A search for'BOCES' resulted in 26 matches, some of which arelisted below.


BOCES SUITE 102 900 WATERVLIET SHAKER RD ALBANY NY 12205 VERIZON WIRELESS

BOCES ATTN VAL WARD 435 GLENWOOD RD BINGHAMTON NY 13905 NEW YORK TELEPHONE CO

BOCES 1126 BALDHILL RD HORNELL NY 14843 COCA COLA ENTERPRISES INC

BOCES 1086 EAST MAIN STREET SCHRUB OAK NY 10588 AT&T CORP

BOCES CAYUGA-ONONDAGA BOARD OF COOPE P O BOX 4 51 SYRACUSE NY 13208 TIME WARNER ENTERTAINMENT CO L P

while a search using “schooldistrict” resulted in the following “hits:”


SCHOOL DISTRICT GREE 10 GRAY AVE GREENWICH NY 12834 SHAKLEE U S LLC

SCHOOL DISTRICT NO 3 5 LANGLEY BUSINESS OFFICE 4875 222ND STREET EDUCATIONAL TESTING SERVICE

SCHOOL DISTRICT NORT 5355 W TAFT RD N SYRACUSE NY NEW YORK TELEPHONE CO

SCHOOL DISTRICT NUMBER 42 BUSINESS OFFICE 22225 BROWN AVENUE EDUCATIONAL TESTING SERVICE

and there were four matchesfor “union free school” –

UNION FREE SCHOOL DI 480 CLAY PITTS RD EAST NORTHPORT NY 11731 HEWLETT PACKARD CO

UNION FREE SCHOOL DI TOWN OF GREENBURGH BOARD OF ED 360 BROAD WAY HASTINGS NY 10706 PRUDENTIAL INSURANCE CO OF AMERICA

UNION FREE SCHOOL DIST 1 399 KNOLLWOOD RD APT 103 WHITE PLAINS NY 10607 AETNA LIFE INSURANCE & ANNUITY CO

UNION FREE SCHOOL DISTRICT 4 BOARD EDUCATION 27 FARRAGUT AVE HASTINGS ON HUDSON NY 10706 CHEMTURA CORP


Searching  for “Townof” produced 366 matches, including:


TOWN OF ALDEN 2240 SOUTHWESTERN BLVD WEST SENECA NY 14224 CITIBANK NEW YORK STATE

TOWN OF ANDES HIGHWAY DEP PO BOX 246 ANDES NY 13731 HSBC FINANCE CORP

TOWN OF ARIETA PO BOX 37 PISECO NY 12139 CDW LLC

TOWN OF ASHFORD 9377 ROUTE 240 WEST VALLEY NY 14171 EDP RENEWABLES NORTH AMERICA L

while a search for “Townclerk” produced 2 matches:


TOWN CLERK - WATER &SEWER USUA TOWN OF GREENPORT HUDSON NY 12534 NEW YORK TELEPHONE

TOWN CLERK GREENBURGH PO BOX 810 STONE RIDGE NY 12484 CITIBANK NA NATIONAL COMPLIANCE GRP

A search using the term “villageof” resulted in 155 matchesincluding:


VILLAGE OF JOE MARASCO 27 WEST AVE SPENCERPORT NY 14559 EXCELLUS HEALTH PLAN INC

VILLAGE OF ADDISON PO BOX B ADDISON NY 14801 TIME WARNER ENTERTAINMENT CO L P

VILLAGE OF ALFRED WATER DEPARTMENT 7 WEST UNIVERSITY STREE T ALFRED NY 14802 ALFRED UNIVERSITY

VILLAGE OF ALTAMONT PO BOX 643 ALTAMONT NY 12009 GALLS LLC

Public employee organizationshaving funds held by the Comptroller include:


CSEA LOCAL 1000 AFSCM 143 WASHINGTON AVE CAPITON ST ALBANY NY 12224    STATE OF CALIFORNIA

CSEA LOCAL 407 10 RAILROAD PL CAPITAL DISTRICT DSO SARATOGA SPRINGS NY 12866 MARRIOTT INTERNATIONAL INC

CSEA LOCAL 431 61 LAKE ST TUPPER LAKE NY 12986 COCA COLA REFRESHMENTS USA INC

CSEA LOCAL 667 PO BOX 903 TROY NY 12181 MARRIOTT INTERNATIONAL INC

CSEA LOCAL 8 PO BOX 480 CARMEL NY 10512 VERIZON NEW YORK INC

and



POLICE BENEVOLENT AS 112 STATE ST STE 1212 ALBANY NY 12207 UNITED STATES LIFE INSURANCE CO

POLICE BENEVOLENT ASSN INC NYC TRANSIT POLICE DEPARTMENT CO MR RICH ARD A DIENST NEW YORK NY 10279 CITIBANK N A

POLICE BENEVOLENT ASSOC CITY OF WHITE PLAINS PO BOX 68 WHITE PLAINS NY 10603 SAM ASH MUSIC CORPORATION

POLICE BENEVOLENT ASSOC TOWN BOX 89 ARRONK NY 10504 BANKERS TRUST CO



Selected reports and information published by New York State's Comptroller Thomas P. DiNapoli

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Selected reports andinformation published by New York State's Comptroller Thomas P. DiNapoliIssued during the week ending February 24, 2013[Click on text highlightedin bold toaccess the full report] 


Independent Review of State Pension FundFinds DiNapoli’s Reforms Highly Effective

New York State Comptroller Thomas P. DiNapoli Tuesday released an independent review of the New York StateCommon Retirement Fund (Fund) that found it is well–run, operates with anindustry–leading level of transparency and invests effectively on behalf of itsmembers. The review by Funston Advisory Services, required as part of robustoversight reforms pushed by DiNapoli, determined the Comptroller is fulfillinghis fiduciary responsibilities and that Fund employees act within ethical andprofessional standards.


A.G. Schneiderman and Comptroller DinapoliAnnounce Guilty Pleas Of Former Senator Shirley Huntley’s Co–Defendants

Attorney General Eric T. Schneiderman and Comptroller Thomas P. DiNapoliWednesday announced that the co–defendants in the case of former New YorkSenator Shirley L. Huntley have pleaded guilty for their roles in an illegalmember item theft scheme and a cover up. Patricia Savage, Senator Huntley’saide and president of Parent Workshop, a bogus nonprofit, and Lynn Smith,Senator Huntley’s niece and the treasurer of Parent Workshop, pleaded guiltytoday to the felony of Attempted Grand Larceny in the Third Degree, and agreedto pay $29,950 in restitution to the state of New York, the full amount oftaxpayer dollars they had stolen. A third co–defendant, David Gantt, pleadedguilty to the charge of Falsifying Business Records in the Second Degree.

New York State Common Retirement FundAnnounces Third Quarter Results

The New York State Common Retirement Fund’s (Fund) rate of return for the thirdquarter ending December 31, 2012 was 1.74 percent, according to New York StateComptroller Thomas P. DiNapoli. The Fund’s estimated value at the end of thethird quarter was $152.9 billion, near its historical high.


DiNapoli: Yonkers Challenged by SchoolFinances, Declining Property Values

The City of Yonkers has persistently faced significant budget gaps which havecaused the city to draw down its fund balance. Recent declines in state aid,property values and growing school demands have added to the city’s financialchallenges, according to a report released Wednesday by NewYork State Comptroller Thomas P. DiNapoli. Yonkers officials have startedmaking tough choices needed to bring the City’s budget into structural balance.The report is the latest in a series of fiscal profiles on cities across thestate released by the Comptroller’s office.


DiNapoli: Syracuse’s Fiscal ConditionChallenged by Systemic Problems

The City of Syracuse is confronted by a large number of vacant and tax–exemptproperties, low rates of home ownership and decreased home values, according toa report released Wednesday by StateComptroller Thomas P. DiNapoli. The rating agencies credit Syracuse for havinga relatively strong financial position, but caution the City is susceptible toadverse economic conditions. The report is the latest in a series of fiscalprofiles DiNapoli will issue on cities across the state.


Qualcomm Implements Industry–LeadingPolitical Spending Disclosure Policy; DiNapoli Commends Action

Qualcomm Incorporated and the New York State Common Retirement Fund (Fund) werepleased to announce Friday that following informative discussions, the Fund hasdecided to withdraw the lawsuit it filed on January 2, 2013. Qualcomm willimplement a revised political spending disclosure policy which is now availableon its website.

Bath Volunteer Fire Department not a public agency for the purpose of contractor's paying prevailing wages pursuant to Labor Law §220

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Bath Volunteer Fire Department not a public agency forthe purpose of contractor's paying prevailing wages pursuant to Labor Law §220*
M.G.M. Insulation, Inc. v Gardner, 2013 NY Slip Op 01017, Court ofAppeals
The Bath Volunteer Fire Department [BVFD], a not-for-profitfire corporation under Not-for-Profit Corporation Law §1402, historicallyoperated from a building owned by the Village of Bath.

After BVFD determined that the facility was no longer adequate for its needsand the Village declined to build it a new firehouse, BVFD commissioned afeasibility study and obtained its own financing for the construction of a newfacility. Ultimately BVFD acquired land and in 2006 employed R-J Taylor GeneralContractors, Inc. (Taylor) as the general contractor to build the facility.Taylor subsequently hired a number of subcontractors to construct the variousportions of the firehouse.
Following an investigation, the Department of Labor (DOL)issued an opinion letter, concluding that the firehouse project was a publicwork subject to the prevailing wage law and ultimately an administrativehearing was held on the question of the applicability of the prevailing wagelaw to the firehouse project.**
A DOL Hearing Officer subsequently determined that the project wassubject to the prevailing wage law, concluding that the firehouse projectsatisfied both prongs of the so-called Erie County testfor prevailing wage law applicability, (see Matter of Erie County Indus. Dev.Agency v Roberts, 94 AD2d 532, affd 63 NY2d 810), holding that volunteer firecorporations such as BVFD are the "functional equivalent[s]" ofmunicipal corporations and are therefore "covered entities" underLabor Law §220.
In the alternative, the Hearing Officer said that even if avolunteer fire corporation did not generally satisfy the public entity test,the protection services agreement between BVFD and the Village of Bathsatisfied the first prong of the test and, because the Village authorized andsupported the firehouse project, and the object of the project entailedprovision of fire protection services for the community, the project satisfiedthe "public works" requirement.
The Court of Appeals disagreed with the Hearing Officer’sdetermination on both theories, holding that BVDFwas not a public agency as contemplated by the statute nor was any other publicentity a party to the 2006 contract. Accordingly, said the court, the prevailingwage law did not apply with respect to this project.
Had the Legislature intended to include volunteer firecorporations under the statute, said the court, it could easily have done so, explaining that in 2007, the Legislature expanded the statute's coverage to include contractsinvolving other types of entities [see Labor Law § 220(2)], but only when it can be shown they wereacting on behalf of the public entity, citing New York Charter School Association v Smith, 15 NY3d 403, at 410.  * N.B. The court said that “Indeed, certainvolunteer fire department contracts may fall under the prevailing wage lawbased on the 2007 “amendment language” of Labor Law §220(2) but at the time ofcontract relevant in this litigation, i.e., 2006, “the 2007 amendment of theprevailing wage law did not exist.”
** Once the subcontractors learned of the DOL'sdetermination, work on the project halted. In December 2006, BVFD agreed toindemnify Taylor and its subcontractors against any liability resulting fromtheir failure to pay the prevailing wages, and construction resumed and theproject was completed.
The decision is posted on the Internet at: http://www.courts.state.ny.us/reporter/3dseries/2013/2013_01017.htm

24 Şubat 2013 Pazar

Arbitration award sustained absent proof that the award violates public policy, is irrational, or clearly exceeds a specifically enumerated limitation on the arbitrator's power

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Arbitration award sustained absent proof that the awardviolates public policy, is irrational, or clearly exceeds a specificallyenumerated limitation on the arbitrator's power
Shenendehowa Cent. Sch. Dist. Bd. of Educ. (Civil Serv.Empls. Assn., Inc., Local 1000, AFSCME, AFL-CIO, Local 864), 2013 NYSlip Op 00885, Court of Appeals
A school bus driver [Driver] tested positive for marijuana after submitting to a random drugtest. This resulted in the School District's terminating Driver from theposition, which action was ultimately submitted to arbitration.
The issue presented to the arbitrator: Did the terminationof Driver violate the collective bargaining agreement between the parties and,if so, what is the appropriate remedy?
The arbitrator concluded that the School District hadviolated the agreement and that the penalty imposed on Driver, dismissal, wastoo severe. The arbitrator directed the School District to reinstate Driverwithout back pay, subject to certain conditions including an evaluation by asubstance abuse professional and a negative drug test.*
The School District filed an CPLR Article 75 petitionseeking to vacate that portion of the arbitration award directing that itreinstate Driver to the position of school bus driver and to modify the award by imposing thepenalty of termination, contending that Driver had violated the SchoolDistrict’s “zero drug tolerance” policy.
SupremeCourt granted the School District’s Article 75 petition seeking to vacate anarbitration award thus  reinstating the School District's decision to terminate Driver's employment with the district.

TheAppellate Division vacated the Supreme Court’s ruling, finding that the awardwas not against public policy, was rational, and in making the award thearbitrator did not exceed his powers, holding that “Supreme Court should haveconfirmed the arbitration award.” TheAppellate Division explained that “If a matter is submitted to arbitration,reviewing courts should not interpret substantive conditions of the agreementor delve into the merits of the dispute.”
CitingMatter of Grasso, 72 AD2d 1463 [Leave to appeal denied, 15 NY3d 703], the courtsaid that "Courts must give deference to an arbitrator's decision andcannot examine the merits of an arbitration award, even if the arbitratormisapplied or misinterpreted the law or facts, but a court may vacate an award[where it] violates a strong public policy, is irrational or clearly exceeds aspecifically enumerated limitation on the arbitrator's power."
Further,the Appellate Division stated that "[W]here an agreement is 'reasonablysusceptible of the construction given it by the arbitrator, a court may notvacate the award," citing Matter of Albany County SheriffsLocal 775 of N.Y. State Law Enforcement Officers Union, Dist. Council 82,AFSCME, AFL-CIO [County of Albany], 27 AD3d 979.
The Court of Appeals agreed with the Appellate Division’sruling, noting that it has recognized three narrow grounds that may form thebasis for vacating an arbitrator's award, repeating the Appellate Division’scriteria that the award violates public policy, is irrational, or clearly exceeds aspecifically enumerated limitation on the arbitrator's power, commenting thatnone of these grounds had been established by the School District in thisaction.**
Specifically the high court ruled that:
1. The arbitrator's decision did not exceed a specificlimitation on his power; nor was it irrational.
2. Contrary to the School District's argument, the parties'agreement did not require the penalty of termination in these circumstances and
3. That the District did not in fact have a zero tolerancepolicy in place.
According, said the court, the arbitrator’s determinationthat Driver’s “reinstatement with conditions” was the appropriate penalty didnot violate public policy. Although, said the court, “reasonable minds might disagreeover what the proper penalty should have been [this] does not provide a basisfor vacating the arbitral award or refashioning the penalty...."
Significantly theCourt of Appeals noted that the arbitrator “determinedthat, contrary to the School District's argument, the parties' Taylor Law agreement didnot require the penalty of termination in these circumstances and that theDistrict did not in fact have a zero tolerance policy.” This suggests that had the Taylor Law agreement provided for termination in theevent the employee tested positive for an unlawful drug or if the School District had awritten "Zero Tolerance" drug policy known to Driver in place at the time Driver tested positive for an unlawfuldrug, the School District would have prevailed.

* The decision notes that “This effectively imposed, at that time, a six-monthunpaid suspension” on Driver.
** Article 75 of the CPLR sets out other grounds, not relevant in this action, for a court's vacating an arbitration award.
The decision is posted on the Internet at: http://www.courts.state.ny.us/reporter/3dseries/2013/2013_00885.htm

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Electronic books [e-books] focusing on New York State andMunicipal Public Personnel Law:
AReasonable Disciplinary Penalty Under the Circumstances - A 600+ page guide to penalties imposed onpublic employees in New York State found guilty of selected acts of misconduct.For more information, click on http://nypplarchives.blogspot.com/
TheDiscipline Book, - a concise guide to disciplinary actions involvingpublic employees in New York State a 2100+ page e-book. For more informationclick on http://thedisciplinebook.blogspot.com/

Selected reports and information published by New York State's Comptroller Thomas P. DiNapoli

To contact us Click HERE

Selected reports and information published by NewYork State's Comptroller Thomas P. DiNapoliIssued during the week February 17, 2013   [Click on the caption to access the fullreport]
DiNapoli Announces $250 Million Private EquityCo–Investment Allocation for Emerging Manager Program

Comptroller Thomas P. DiNapoli announced Friday that the New York State CommonRetirement Fund (Fund) has allocated $250 million to Farol Investment Advisersfor private equity co–investments with the Fund’s emerging managers program.The announcement came as DiNapoli hosted the sixth annual emerging managerconference in Albany, New York.

Comptroller DiNapoli and A.G. SchneidermanAnnounce Felony Plea of Former Senator Shirley Huntley

Comptroller Thomas P. DiNapoli and Attorney General Eric T. SchneidermanWednesday announced that former New York Senator Shirley L. Huntley has pleadedguilty to Tampering with Physical Evidence, an E Felony, for falsifyingevidence in an effort to obstruct the investigation into the theft of a grantshe sponsored for a sham non–profit entity, the Parent Workshop.

DiNapoli: Medicaid System Flaws Led to $7.8Million in Overpayments

The Department of Health’s Medicaid program overpaid health care providers by$7.8 million over a six month period because of flaws with its eMedNY computersystem, according to a reportreleased Thursday by New York State Comptroller Thomas P. DiNapoli. Auditorsfrom the Comptroller’s Office recouped about $7.5 million of the overpaymentsand took steps to prevent future payment errors.

DiNapoli: Millions Sat Idle in MTA BankAccounts

The Metropolitan Transportation Authority (MTA) held over $90 million in fundsand bank accounts that could have been used to meet its budgeted costs,according to an auditreleased Wednesday by New York State Comptroller Thomas P. DiNapoli. Auditorsfound the MTA did a poor job managing its cash–on–hand, had excess bankaccounts and no set targets for short–term investing of billions of dollars.

DiNapoli: Executive Budget Continues SpendingRestraint in the Face of a Challenging Economy

The 2013–14 Executive Budget continues the state’s effort to move towardlong–term structural balance and reduces projected out–year budget gaps whileaddressing infrastructure needs, including the recovery from Hurricane Sandy,according to a reportreleased Wednesday by State Comptroller Thomas P. DiNapoli.

DiNapoli: Growth of Local Sales TaxCollections Slows

Local sales tax collections in New York grew by $450 million in 2012, anincrease of only 3.3 percent from 2011, according to a reportissued Thursday by State Comptroller Thomas P. DiNapoli. New York City had aslightly better growth rate of 3.5 percent.

Comptroller DiNapoli Releases School Audits

New York State Comptroller Thomas P. DiNapoli Thursday announced his officecompleted the following audits:
the CortlandEnlarged Central School District; and,
the PawlingCentral School District.

Comptroller DiNapoli Releases Municipal Audits

New York State Comptroller Thomas P. DiNapoli Thursday announced his officecompleted the following audits:
the Villageof Huntington Bay;
the Townof Long Lake;
the Villageof Munnsville; and,
the Cityof North Tonawanda.