Part 816 Local Government Performance and Efficiency Program

A new Part 816 entitled Local Government Performance and Efficiency Program is added to Title 19 to read as follows:

Section 816.1 Purpose.
The purpose of this regulation is to implement the requirements of State Finance Law section 54(10)(s), which established the Local Government Performance and Efficiency Program beginning in the state fiscal year commencing April 1, 2011.  The statute directed the Secretary of State to adopt rules and regulations for the program.

Section 816.2 Definitions.
As used in this Part, the following words and terms shall have the stated meaning:
(a) Municipality means a county, city, town, or village, but shall not include those counties contained within the City of New York.
(b) Secretary means the New York State Secretary of State.

Section 816.3 Eligibility.
All municipalities in New York State are eligible to apply individually or jointly, provided however that if an action was undertaken jointly, municipalities must apply jointly for an award for such an action.  Awards shall only be made to municipalities for actions that have been fully implemented, that clearly resulted in quantifiable savings and efficiencies, and that produced permanent and quantifiable improvements in municipal efficiency and services.

Section 816.4 Awards.
(a) The secretary may make awards to applicants based on factors including, but not limited to, the amount of current and future savings produced by the applicant’s action, the impact of such action upon the municipal property tax levy, the size and complexity of the action, and whether the action can be replicated by other municipalities.
(b) Subject to annual appropriations by the Legislature, awards will be made to successful applicants pursuant to eligibility criteria and application, review and approval procedures set forth herein.  The maximum amount awarded per application shall not exceed the lesser of five million dollars or twenty-five dollars per resident of the applying municipality or municipalities as of the most recent federal decennial census, provided, however, that if the boundaries of municipalities jointly applying for an award pursuant to this program overlap, the residents in overlapping areas shall be counted only once, and provided, further, that if a county jointly applies with some but not all of the municipalities within such county, only the residents in such applying municipalities shall be counted.  However, where municipalities within such county have benefited from the project upon which such joint application is based but are not applicants themselves, the population of such counties may, in the discretion of the secretary, be counted for the purposes of calculating the award amount.
(c) Prior to payments, recipients shall submit to the secretary copies of studies, agreements and other information on the action along with verification of cost savings.
(d) Applicants selected to receive awards will be required to meet deadlines for execution of contracts with the state in order to retain the award.  If an applicant does not meet such established deadlines, that applicant’s award funds may be returned to the funding pool for use by other eligible applicants.  Applicants who lose eligibility as a result of missing deadlines may reapply for available funds if any remain after the initial disbursement of awards.

Section 816.5 Use of awards.
Awards received pursuant to the program shall be used by municipalities for general municipal purposes, provided however that if all or some portion of an award is to be used to finance the construction of a new or expanded public infrastructure project, such project will be reviewed for consistency with the relevant criteria specified in Article 6 of the Environmental Conservation Law, the State Smart Growth Public Infrastructure Policy Act.

Section 816.6 General application, review and approval procedures.
a) The secretary shall develop:
1) an application for municipalities seeking to receive awards; and
2) a process by which the applications will be evaluated.
b) Such application shall require municipalities to demonstrate how the action upon which the application is based has resulted in quantifiable recurring savings, efficiencies, and permanent improvements to municipal services.
c) Applications shall be considered only for actions that commenced on or after January 1, 2010.
d) Actions on the basis of which municipalities apply must already have been implemented at the time of application.

Section 816.7 Contents of application.
a) Application for awards shall be made using forms prescribed by the secretary.
b) Applications shall contain, but not be limited to containing, the following:
1) a detailed description of the action, including:
i) the date the action commenced, and
ii) the date the action was fully implemented;
2) the designation of a contact person or award administrator;
3) the names and contact information for representatives of each municipality applying for recognition of the action;
4) a resolution of each municipality's governing body requesting recognition of the action;
5) any inter-municipal agreements entered into to carry out the action;
6) a description of any funds previously awarded by the Department of State to finance the action.

Section 816.8 Miscellaneous.
(a) The Department of State will provide outreach services to inform municipalities of the availability of funding and provide information to applicants concerning application preparation and submission.
(b) The secretary may focus the program in specific functional service areas, in which case such areas of focus shall be detailed in a request for applications.
(c) All action recognition must be undertaken pursuant to a contract with the Department of State, which contract shall require, in addition to the requirements of the Department of State, Attorney General and State Comptroller, that all contracts not to be performed by the officials and employees of the awardee be entered into in accordance with General Municipal Law, sections 103 and 104-b.  Awards may be made in amounts less than those requested by applicants in order to allow the department to recognize a greater number of projects.