Bill Text: NY A04088 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to a ten-year state takeover of the local share of Medicaid outside of New York city; provides a twenty-year state takeover of fifty percent of the local share of Medicaid in New York city; creates a commission to reform public assistance benefits; expands the state earned income tax credit from thirty percent to forty-five percent of the federal credit amount; offers the option for individuals to receive the state earned income tax credit in monthly installments; expands the child and dependent care tax credit; allows those receiving unemployment insurance to work part-time while still receiving a partial unemployment benefit; provides for state assumption of the growth in property taxes for school districts and local governments that remain under the real property tax cap; creates a real property tax redesign team required to produce recurring savings; and subjects New York city to the property tax cap.
Spectrum: Partisan Bill (Republican 35-0)
Status: (Introduced - Dead) 2020-07-17 - held for consideration in ways and means [A04088 Detail]
Download: New_York-2019-A04088-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4088 2019-2020 Regular Sessions IN ASSEMBLY February 1, 2019 ___________ Introduced by M. of A. KOLB, ASHBY, BARCLAY, BLANKENBUSH, BRABENEC, BYRNE, CROUCH, DiPIETRO, FINCH, FITZPATRICK, FRIEND, GARBARINO, GIGLIO, GOODELL, HAWLEY, JOHNS, LALOR, LAWRENCE, MALLIOTAKIS, McDO- NOUGH, B. MILLER, M. L. MILLER, MONTESANO, MORINELLO, NORRIS, PALMESA- NO, PALUMBO, RA, RAIA, STEC, WALSH -- read once and referred to the Committee on Ways and Means AN ACT to amend chapter 58 of the laws of 2005, relating to authorizing reimbursements for expenditures made by or on behalf of social services districts for medical assistance for needy persons and the administration thereof, in relation to providing for a ten-year state takeover of the local share of medicaid outside of New York City (Part A); providing for a twenty-year state takeover of fifty percent of the local share of Medicaid in New York City (Part B); to amend the social services law, in relation to creating the Commission to Reform Public Assistance Benefits (Part C); to amend the tax law, in relation to expanding the state earned income tax credit from thirty percent to forty-five percent of the federal credit amount (Part D); to amend the tax law, in relation to offering the option for individuals to receive the state earned income tax credit in monthly installments (Part E); to amend the tax law, in relation to expanding the child and dependent care tax credit; and to repeal certain provisions of such law relating thereto (Part F); to amend the labor law, in relation to allowing those receiving unemployment insurance to work part-time while still receiving a partial unemployment benefit (Part G); to amend the state finance law, the education law, and the general municipal law, in relation to the state assuming the growth in property taxes for school districts and local governments that remain under the real property tax cap (Part H); to amend the general municipal law, in relation to creating a property tax redesign team; and providing for the repeal of such provisions upon expiration thereof (Part I); and to amend the general municipal law and the municipal home rule law, in relation to establishing limitations upon real property tax levies in cities with a population of one million or more (Part J) EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06159-01-9A. 4088 2 The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Legislative findings and intent. New York State is at a 2 very critical moment in its history. Many recent articles have cited 3 information provided by the United States Census Bureau that shows over 4 one million people have left the New York area since 2010, and this can 5 be attributed to the high cost of living forced on New York taxpayers 6 through high taxes and a lack of job opportunities. Our high taxes, 7 particularly our high property taxes, have contributed to New York 8 consistently being ranked near the bottom when compared to other states 9 for business tax climate and total combined tax burden. By doing little 10 to reform the structural reasons behind the high cost of living in New 11 York, the state government has failed to make life better for families 12 and businesses in every region. 13 To compound this problem, New York spends a high amount on public 14 assistance programs that are meant to help citizens escape poverty and 15 become self-sufficient, but include income thresholds that create what 16 are known as "benefit cliffs". These benefit cliffs occur when an indi- 17 vidual or family receiving public benefits hits a specified dollar 18 amount in income and immediately loses eligibility to receive a certain 19 public assistance benefit. When this happens, the state is creating a 20 situation where New Yorkers would actually see a reduction in real take- 21 home pay because the value of the public assistance benefit they will 22 lose is worth more than the increased income they would receive through 23 working. This means that low-income New Yorkers, through no fault of 24 their own, will find it difficult to accept a job, more hours, or an 25 increase in pay as the financial well-being of their family is threat- 26 ened by working more. Work should be incentivized, and no New Yorker 27 should ever be faced with a situation where working hard and earning a 28 larger salary can actually lead to a decrease in real take-home pay. 29 These problems require state government officials to make hard choic- 30 es, and make long-term structural changes in order to see real systemic 31 changes to our economy in the long run. Therefore, the legislature finds 32 it necessary to implement a ten-year state takeover of the local share 33 of Medicaid outside of New York City, create the Commission to Reform 34 Public Assistance Benefits to implement a new payment method to eradi- 35 cate the benefit cliffs, expand the state earned income tax credit from 36 thirty percent to forty-five percent of the federal credit amount, offer 37 the option for individuals to receive the state earned income tax credit 38 in monthly installments, expand the child and dependent care tax credit, 39 allow those receiving unemployment insurance to work part-time while 40 still receiving a partial unemployment benefit, assume the growth in 41 property taxes for school districts and local governments that remain 42 under the real property tax cap to take the burden off of homeowners, 43 create a property tax redesign team that will produce recurring savings 44 and subject New York City to the real property tax cap. These struc- 45 tural changes will help make New York more competitive, and a more 46 attractive place to build a business and raise a family. They will also 47 provide low-income New Yorkers with additional opportunities to better 48 their situation and rise out of poverty. 49 § 2. This act enacts into law major components of legislation provid- 50 ing for a ten-year state takeover of the local share of Medicaid outside 51 of New York City, providing for a twenty-year state takeover of fifty 52 percent of the local share of Medicaid in New York City, creating the 53 Commission to Reform Public Assistance Benefits, expanding the stateA. 4088 3 1 earned income tax credit from thirty percent to forty-five percent of 2 the federal credit amount, offering the option for individuals to 3 receive the state earned income tax credit in monthly installments, 4 expanding the child and dependent care tax credit, allowing those 5 receiving unemployment insurance to work part-time while still receiving 6 a partial unemployment benefit, assuming the growth in property taxes 7 for school districts and local governments that remain under the real 8 property tax cap to take the burden off of homeowners, creating a prop- 9 erty tax redesign team required to produce recurring savings and 10 subjecting New York City to the real property tax cap. Each component is 11 wholly contained within a Part identified as Parts A through J. The 12 effective date for each particular provision contained within such Part 13 is set forth in the last section of such Part. Any provision in any 14 section contained within a Part, including the effective date of the 15 Part, which makes reference to a section "of this act", when used in 16 connection with that particular component, shall be deemed to mean and 17 refer to the corresponding section of the Part in which it is found. 18 Section four of this act sets forth the general effective date of this 19 act. 20 PART A 21 Section 1. Subdivision (c) of section 1 of part C of chapter 58 of the 22 laws of 2005 relating to authorizing reimbursements for expenditures 23 made by or on behalf of social services districts for medical assistance 24 for needy persons and the administration thereof is amended and twelve 25 new subdivisions (c-2), (c-3), (c-4), (c-5), (c-6), (c-7), (c-8), (c-9), 26 (c-10), (c-11),(c-12) and (c-13) are added to read as follows: 27 (c) Commencing with the calendar year beginning January 1, 2006, 28 calendar year social services district medical assistance expenditure 29 amounts for each social services district shall be calculated by multi- 30 plying the results of the calculations performed pursuant to paragraph 31 (b) of this section by a non-compounded trend factor, as follows: 32 (i) 2006 (January 1, 2006 through December 31, 2006): 3.5%; 33 (ii) 2007 (January 1, 2007 through December 31, 2007): 6.75% (3.25% 34 plus the prior year's 3.5%); 35 (iii) 2008 (January 1, 2008 through December 31, 2008): 9.75% (3% 36 plus the prior year's 6.75%); 37 (iv) 2009 (January 1, 2009 through December 31, 2009), and each 38 succeeding calendar year through 2020: prior year's trend factor 39 percentage plus 3%. 40 (c-2) Notwithstanding the provisions of section 368-a of the social 41 services law, or any other provision of law, commencing with the period 42 January 1, 2020 through December 31, 2020, calendar year social services 43 district medical assistance expenditure amounts for each social services 44 district shall be reduced by 10% from the 2019 expenditures. No less 45 than 100% of the annual savings from this medical assistance expenditure 46 reduction, compared to the prior year medical assistance expenditure, 47 shall be used for property tax levy reductions, or property tax rebates, 48 effective in the local government's 2021 fiscal year. This section shall 49 not apply to a city with a population of one million or more. 50 (c-3) Notwithstanding the provisions of section 368-a of the social 51 services law, or any other provision of law, commencing with the period 52 January 1, 2021 through December 31, 2021, calendar year social services 53 district medical assistance expenditure amounts for each social services 54 district shall be reduced by 20% from the 2019 expenditures. No lessA. 4088 4 1 than 100% of the annual savings from this medical assistance expenditure 2 reduction, compared to the prior year medical assistance expenditure, 3 shall be used for property tax levy reductions, or property tax rebates, 4 effective in the local government's 2022 fiscal year. This section shall 5 not apply to a city with a population of one million or more. 6 (c-4) Notwithstanding the provisions of section 368-a of the social 7 services law, or any other provision of law, commencing with the period 8 January 1, 2022 through December 31, 2022, calendar year social services 9 district medical assistance expenditure amounts for each social services 10 district shall be reduced by 30% from the 2019 expenditures. No less 11 than 100% of the annual savings from this medical assistance expenditure 12 reduction, compared to the prior year medical assistance expenditure, 13 shall be used for property tax levy reductions, or property tax rebates, 14 effective in the local government's 2023 fiscal year. This section shall 15 not apply to a city with a population of one million or more. 16 (c-5) Notwithstanding the provisions of section 368-a of the social 17 services law, or any other provision of law, commencing with the period 18 January 1, 2023 through December 31, 2023, calendar year social services 19 district medical assistance expenditure amounts for each social services 20 district shall be reduced by 40% from the 2019 expenditures. No less 21 than 100% of the annual savings from this medical assistance expenditure 22 reduction, compared to the prior year medical assistance expenditure, 23 shall be used for property tax levy reductions, or property tax rebates, 24 effective in the local government's 2024 fiscal year. This section shall 25 not apply to a city with a population of one million or more. 26 (c-6) Notwithstanding the provisions of section 368-a of the social 27 services law, or any other provision of law, commencing with the period 28 January 1, 2024 through December 31, 2024, calendar year social services 29 district medical assistance expenditure amounts for each social services 30 district shall be reduced by 50% from the 2019 expenditures; and shall 31 remain eliminated each year thereafter. No less than 100% of the annual 32 savings from this medical assistance expenditure reduction, compared to 33 the prior year medical assistance expenditure, shall be used for proper- 34 ty tax levy reductions, or property tax rebates, effective in the local 35 government's 2025 fiscal year. This section shall not apply to a city 36 with a population of one million or more. 37 (c-7) Notwithstanding the provisions of section 368-a of the social 38 services law, or any other provision of law, commencing with the period 39 January 1, 2025 through December 31, 2025, calendar year social services 40 district medical assistance expenditure amounts for each social services 41 district shall be reduced by 60% from the 2019 expenditures; and shall 42 remain eliminated each year thereafter. No less than 100% of the annual 43 savings from this medical assistance expenditure reduction, compared to 44 the prior year medical assistance expenditure, shall be used for proper- 45 ty tax levy reductions, or property tax rebates, effective in the local 46 government's 2026 fiscal year. This section shall not apply to a city 47 with a population of one million or more. 48 (c-8) Notwithstanding the provisions of section 368-a of the social 49 services law, or any other provision of law, commencing with the period 50 January 1, 2026 through December 31, 2026, calendar year social services 51 district medical assistance expenditure amounts for each social services 52 district shall be reduced by 70% from the 2019 expenditures; and shall 53 remain eliminated each year thereafter. No less than 100% of the annual 54 savings from this medical assistance expenditure reduction, compared to 55 the prior year medical assistance expenditure, shall be used for proper- 56 ty tax levy reductions, or property tax rebates, effective in the localA. 4088 5 1 government's 2027 fiscal year. This section shall not apply to a city 2 with a population of one million or more. 3 (c-9) Notwithstanding the provisions of section 368-a of the social 4 services law, or any other provision of law, commencing with the period 5 January 1, 2027 through December 31, 2027, calendar year social services 6 district medical assistance expenditure amounts for each social services 7 district shall be reduced by 80% from the 2019 expenditures; and shall 8 remain eliminated each year thereafter. No less than 100% of the annual 9 savings from this medical assistance expenditure reduction, compared to 10 the prior year medical assistance expenditure, shall be used for proper- 11 ty tax levy reductions, or property tax rebates, effective in the local 12 government's 2028 fiscal year. This section shall not apply to a city 13 with a population of one million or more. 14 (c-10) Notwithstanding the provisions of section 368-a of the social 15 services law, or any other provision of law, commencing with the period 16 January 1, 2028 through December 31, 2028, calendar year social services 17 district medical assistance expenditure amounts for each social services 18 district shall be reduced by 90% from the 2019 expenditures; and shall 19 remain eliminated each year thereafter. No less than 100% of the annual 20 savings from this medical assistance expenditure reduction, compared to 21 the prior year medical assistance expenditure, shall be used for proper- 22 ty tax levy reductions, or property tax rebates, effective in the local 23 government's 2029 fiscal year. This section shall not apply to a city 24 with a population of one million or more. 25 (c-11) Notwithstanding the provisions of section 368-a of the social 26 services law, or any other provision of law, commencing with the period 27 January 1, 2029 through December 31, 2029, calendar year social services 28 district medical assistance expenditure amounts for each social services 29 district shall be reduced by 100% from the 2019 expenditures; and shall 30 remain eliminated each year thereafter. No less than 100% of the annual 31 savings from this medical assistance expenditure reduction, compared to 32 the prior year medical assistance expenditure, shall be used for proper- 33 ty tax levy reductions, or property tax rebates, effective in the local 34 government's 2030 fiscal year. This section shall not apply to a city 35 with a population of one million or more. 36 (c-12) Notwithstanding the provisions of section seven of this act, 37 any county that opted into the local sales tax intercept methodology 38 shall receive a proportionate reduction in the sales tax intercept as 39 described in subdivisions (c-2), (c-3), (c-4), (c-5), (c-6), (c-7), 40 (c-8), (c-9), (c-10) and (c-11) of this section and use these recaptured 41 funds for property tax reductions in the same manner as other local 42 jurisdictions as described. 43 (c-13) The minimum amount of annual property tax levy reductions 44 resulting from savings achieved as defined in subdivisions (c-2), (c-3), 45 (c-4), (c-5), (c-6), (c-7), (c-8), (c-9), (c-10) and (c-11) of this 46 section, shall be determined by the state comptroller and transmitted to 47 each local government one hundred eighty days in advance of the start of 48 the fiscal year for which the property tax reduction is to be effective. 49 § 2. This act shall take effect immediately. 50 PART B 51 Section 1. Notwithstanding the provisions of part C of chapter 58 of 52 the laws of 2005 and section 368-a of the social services law, or any 53 other provision of law, in cities with a population of one million or 54 more:A. 4088 6 1 (a) commencing with the period January 1, 2020 through December 31, 2 2020, calendar year social services district medical assistance expendi- 3 ture amounts for each social services district shall be reduced by 2.5% 4 from the 2019 expenditures. No less than 100% of the annual savings from 5 this medical assistance expenditure reduction, compared to the prior 6 year medical assistance expenditure, shall be used for property tax levy 7 reductions, or property tax rebates, effective in the local government's 8 2021 fiscal year; 9 (b) commencing with the period January 1, 2021 through December 31, 10 2021, calendar year social services district medical assistance expendi- 11 ture amounts for each social services district shall be reduced by 5% 12 from the 2019 expenditures. No less than 100% of the annual savings from 13 this medical assistance expenditure reduction, compared to the prior 14 year medical assistance expenditure, shall be used for property tax levy 15 reductions, or property tax rebates, effective in the local government's 16 2022 fiscal year; 17 (c) commencing with the period January 1, 2022 through December 31, 18 2022, calendar year social services district medical assistance expendi- 19 ture amounts for each social services district shall be reduced by 7.5% 20 from the 2019 expenditures. No less than 100% of the annual savings from 21 this medical assistance expenditure reduction, compared to the prior 22 year medical assistance expenditure, shall be used for property tax levy 23 reductions, or property tax rebates, effective in the local government's 24 2023 fiscal year; 25 (d) commencing with the period January 1, 2023 through December 31, 26 2023, calendar year social services district medical assistance expendi- 27 ture amounts for each social services district shall be reduced by 10% 28 from the 2019 expenditures. No less than 100% of the annual savings from 29 this medical assistance expenditure reduction, compared to the prior 30 year medical assistance expenditure, shall be used for property tax levy 31 reductions, or property tax rebates, effective in the local government's 32 2024 fiscal year; 33 (e) commencing with the period January 1, 2024 through December 31, 34 2024, calendar year social services district medical assistance expendi- 35 ture amounts for each social services district shall be reduced by 12.5% 36 from the 2019 expenditures; and shall remain eliminated each year there- 37 after. No less than 100% of the annual savings from this medical assist- 38 ance expenditure reduction, compared to the prior year medical assist- 39 ance expenditure, shall be used for property tax levy reductions, or 40 property tax rebates, effective in the local government's 2025 fiscal 41 year; 42 (f) commencing with the period January 1, 2025 through December 31, 43 2025, calendar year social services district medical assistance expendi- 44 ture amounts for each social services district shall be reduced by 15% 45 from the 2019 expenditures; and shall remain eliminated each year there- 46 after. No less than 100% of the annual savings from this medical assist- 47 ance expenditure reduction, compared to the prior year medical assist- 48 ance expenditure, shall be used for property tax levy reductions, or 49 property tax rebates, effective in the local government's 2026 fiscal 50 year; 51 (g) commencing with the period January 1, 2026 through December 31, 52 2026, calendar year social services district medical assistance expendi- 53 ture amounts for each social services district shall be reduced by 17.5% 54 from the 2019 expenditures; and shall remain eliminated each year there- 55 after. No less than 100% of the annual savings from this medical assist- 56 ance expenditure reduction, compared to the prior year medical assist-A. 4088 7 1 ance expenditure, shall be used for property tax levy reductions, or 2 property tax rebates, effective in the local government's 2027 fiscal 3 year; 4 (h) commencing with the period January 1, 2027 through December 31, 5 2027, calendar year social services district medical assistance expendi- 6 ture amounts for each social services district shall be reduced by 20% 7 from the 2019 expenditures; and shall remain eliminated each year there- 8 after. No less than 100% of the annual savings from this medical assist- 9 ance expenditure reduction, compared to the prior year medical assist- 10 ance expenditure, shall be used for property tax levy reductions, or 11 property tax rebates, effective in the local government's 2028 fiscal 12 year; 13 (i) commencing with the period January 1, 2028 through December 31, 14 2028, calendar year social services district medical assistance expendi- 15 ture amounts for each social services district shall be reduced by 22.5% 16 from the 2019 expenditures; and shall remain eliminated each year there- 17 after. No less than 100% of the annual savings from this medical assist- 18 ance expenditure reduction, compared to the prior year medical assist- 19 ance expenditure, shall be used for property tax levy reductions, or 20 property tax rebates, effective in the local government's 2029 fiscal 21 year; 22 (j) commencing with the period January 1, 2029 through December 31, 23 2029, calendar year social services district medical assistance expendi- 24 ture amounts for each social services district shall be reduced by 25% 25 from the 2019 expenditures; and shall remain eliminated each year there- 26 after. No less than 100% of the annual savings from this medical assist- 27 ance expenditure reduction, compared to the prior year medical assist- 28 ance expenditure, shall be used for property tax levy reductions, or 29 property tax rebates, effective in the local government's 2030 fiscal 30 year; 31 (k) commencing with the period January 1, 2030 through December 31, 32 2030, calendar year social services district medical assistance expendi- 33 ture amounts for each social services district shall be reduced by 27.5% 34 from the 2019 expenditures; and shall remain eliminated each year there- 35 after. No less than 100% of the annual savings from this medical assist- 36 ance expenditure reduction, compared to the prior year medical assist- 37 ance expenditure, shall be used for property tax levy reductions, or 38 property tax rebates, effective in the local government's 2031 fiscal 39 year; 40 (l) commencing with the period January 1, 2031 through December 31, 41 2031, calendar year social services district medical assistance expendi- 42 ture amounts for each social services district shall be reduced by 30% 43 from the 2019 expenditures; and shall remain eliminated each year there- 44 after. No less than 100% of the annual savings from this medical assist- 45 ance expenditure reduction, compared to the prior year medical assist- 46 ance expenditure, shall be used for property tax levy reductions, or 47 property tax rebates, effective in the local government's 2032 fiscal 48 year; 49 (m) commencing with the period January 1, 2032 through December 31, 50 2032, calendar year social services district medical assistance expendi- 51 ture amounts for each social services district shall be reduced by 32.5% 52 from the 2019 expenditures; and shall remain eliminated each year there- 53 after. No less than 100% of the annual savings from this medical assist- 54 ance expenditure reduction, compared to the prior year medical assist- 55 ance expenditure, shall be used for property tax levy reductions, orA. 4088 8 1 property tax rebates, effective in the local government's 2033 fiscal 2 year; 3 (n) commencing with the period January 1, 2033 through December 31, 4 2033, calendar year social services district medical assistance expendi- 5 ture amounts for each social services district shall be reduced by 35% 6 from the 2019 expenditures; and shall remain eliminated each year there- 7 after. No less than 100% of the annual savings from this medical assist- 8 ance expenditure reduction, compared to the prior year medical assist- 9 ance expenditure, shall be used for property tax levy reductions, or 10 property tax rebates, effective in the local government's 2034 fiscal 11 year; 12 (o) commencing with the period January 1, 2034 through December 31, 13 2034, calendar year social services district medical assistance expendi- 14 ture amounts for each social services district shall be reduced by 37.5% 15 from the 2019 expenditures; and shall remain eliminated each year there- 16 after. No less than 100% of the annual savings from this medical assist- 17 ance expenditure reduction, compared to the prior year medical assist- 18 ance expenditure, shall be used for property tax levy reductions, or 19 property tax rebates, effective in the local government's 2035 fiscal 20 year; 21 (p) commencing with the period January 1, 2035 through December 31, 22 2035, calendar year social services district medical assistance expendi- 23 ture amounts for each social services district shall be reduced by 40% 24 from the 2019 expenditures; and shall remain eliminated each year there- 25 after. No less than 100% of the annual savings from this medical assist- 26 ance expenditure reduction, compared to the prior year medical assist- 27 ance expenditure, shall be used for property tax levy reductions, or 28 property tax rebates, effective in the local government's 2036 fiscal 29 year; 30 (q) commencing with the period January 1, 2036 through December 31, 31 2036, calendar year social services district medical assistance expendi- 32 ture amounts for each social services district shall be reduced by 42.5% 33 from the 2019 expenditures; and shall remain eliminated each year there- 34 after. No less than 100% of the annual savings from this medical assist- 35 ance expenditure reduction, compared to the prior year medical assist- 36 ance expenditure, shall be used for property tax levy reductions, or 37 property tax rebates, effective in the local government's 2037 fiscal 38 year; 39 (r) commencing with the period January 1, 2037 through December 31, 40 2037, calendar year social services district medical assistance expendi- 41 ture amounts for each social services district shall be reduced by 45% 42 from the 2019 expenditures; and shall remain eliminated each year there- 43 after. No less than 100% of the annual savings from this medical assist- 44 ance expenditure reduction, compared to the prior year medical assist- 45 ance expenditure, shall be used for property tax levy reductions, or 46 property tax rebates, effective in the local government's 2038 fiscal 47 year; 48 (s) commencing with the period January 1, 2038 through December 31, 49 2038, calendar year social services district medical assistance expendi- 50 ture amounts for each social services district shall be reduced by 47.5% 51 from the 2019 expenditures; and shall remain eliminated each year there- 52 after. No less than 100% of the annual savings from this medical assist- 53 ance expenditure reduction, compared to the prior year medical assist- 54 ance expenditure, shall be used for property tax levy reductions, or 55 property tax rebates, effective in the local government's 2039 fiscal 56 year;A. 4088 9 1 (t) commencing with the period January 1, 2039 through December 31, 2 2039, calendar year social services district medical assistance expendi- 3 ture amounts for each social services district shall be reduced by 50% 4 from the 2019 expenditures; and shall remain eliminated each year there- 5 after. No less than 100% of the annual savings from this medical assist- 6 ance expenditure reduction, compared to the prior year medical assist- 7 ance expenditure, shall be used for property tax levy reductions, or 8 property tax rebates, effective in the local government's 2040 fiscal 9 year. 10 § 2. Notwithstanding the provisions of section seven of part C of 11 chapter 58 of the laws of 2005, any county that opted into the local 12 sales tax intercept methodology shall receive a proportionate reduction 13 in the sales tax intercept as described in section one of this act and 14 use those recaptured funds for property tax reductions in the same 15 manner as other local jurisdictions as described. 16 § 3. The minimum amount of annual property tax levy reductions result- 17 ing from savings achieved as defined in section one of this act, shall 18 be determined by the state comptroller and transmitted to each local 19 government one hundred eighty days in advance of the start of the fiscal 20 year for which the property tax reduction is to be effective. 21 § 4. This act shall take effect immediately. 22 PART C 23 Section 1. The social services law is amended by adding a new article 24 11-A to read as follows: 25 ARTICLE 11-A 26 COMMISSION TO REFORM PUBLIC ASSISTANCE BENEFITS 27 Section 500. Definitions. 28 501. Commission to reform public assistance benefits. 29 502. Powers and duties of the commission. 30 § 500. Definitions. As used in this article: 31 1. "Commission" shall mean the commission to reform public assistance 32 benefits established pursuant to this article. 33 2. "Public assistance benefits" shall include family assistance, safe- 34 ty net assistance, veteran assistance, medical assistance for needy 35 persons, institutional care for adults, child care granted at public 36 expense, and any other form of governmental assistance for individuals 37 and/or families as determined by the commission. 38 3. "Real take-home pay" shall mean the total amount of income for an 39 individual and/or family when including public assistance benefits, 40 salary earned through employment and any other form of compensation. 41 § 501. Commission to reform public assistance benefits. 1. There is 42 hereby created the commission to reform public assistance benefits, 43 which shall consist of the following seventeen members who shall be 44 appointed within thirty days after the effective date of this section: 45 a. The commissioner of the office of temporary and disability assist- 46 ance or his or her designee and shall serve as the chairperson of the 47 commission; 48 b. The commissioner of the office of children and family services or 49 his or her designee; 50 c. The commissioner of labor or his or her designee; 51 d. The commissioner of health or his or her designee; 52 e. The director of the division of budget or his or her designee; 53 f. Three members appointed by the temporary president of the senate; 54 g. Three members appointed by the speaker of the assembly;A. 4088 10 1 h. Three members appointed by the minority leader of the senate; 2 i. Three members appointed by the minority leader of the assembly. 3 2. No member of the commission shall be disqualified from holding any 4 public office or employment, nor shall he or she forfeit any such office 5 or employment by virtue of his or her appointment pursuant to this arti- 6 cle. Members of the commission shall receive no compensation for their 7 service, but shall be allowed their actual and necessary expenses 8 incurred in the performance of their functions pursuant to this article. 9 A member of the commission may be removed by the appointing authority 10 only for good cause, after notice and opportunity to be heard. Vacancies 11 shall be filled in the same manner as original appointments. 12 § 502. Powers and duties of the commission. 1. The commission shall 13 conduct a study to examine the current payment method for public assist- 14 ance benefits and identify any and all income levels that exist where an 15 individual or family would become ineligible for any public assistance 16 benefit. 17 a. The commission may require the production of any documents or 18 information the commission deems reasonably necessary to conduct this 19 study. 20 b. The commission shall, within ninety days of the effective date of 21 this article, issue a report providing details on the results of such 22 study to the governor and the legislature, and the report shall also be 23 made widely available to the public via, among other things, publication 24 on a website maintained by the office of temporary and disability 25 assistance. 26 2. Beginning within ten days after the issuance of the report issued 27 pursuant to subdivision one of this section, the commission shall hold 28 at least one public hearing in each of the following regions: Long 29 Island; New York City; Hudson Valley; Capital District; North Country; 30 Central New York; Finger Lakes; Western New York; and Southern Tier. 31 a. During the public hearings, the commission shall hear the testimony 32 of voluntary witnesses, may compel the testimony of witnesses and may 33 require the production of any documents or information the commission 34 deems reasonably necessary to carry out its responsibilities. 35 b. After review, study, and receipt of public comment, the commission 36 shall issue a report within one hundred eighty days of the effective 37 date of this article that includes a new payment method for public 38 assistance benefits that ensures an individual's or family's public 39 assistance benefits are not eliminated at specified income levels, but 40 rather decreased to ensure an individual's or family's real take-home 41 pay increases as a result of any increase in income due to employment. 42 c. Notwithstanding any other provision of law, such payment method as 43 determined by the commission shall have the force of law unless acted 44 upon by the legislature. 45 § 2. This act shall take effect immediately. 46 PART D 47 Section 1. Paragraph 1 of subsection (d) of section 606 of the tax 48 law, as amended by section 1 of part Q of chapter 63 of the laws of 49 2000, is amended to read as follows: 50 (1) General. A taxpayer shall be allowed a credit as provided herein 51 equal to (i) the applicable percentage of the earned income credit 52 allowed under section thirty-two of the internal revenue code for the 53 same taxable year, (ii) reduced by the credit permitted under subsection 54 (b) of this section.A. 4088 11 1 The applicable percentage shall be (i) seven and one-half percent for 2 taxable years beginning in nineteen hundred ninety-four, (ii) ten 3 percent for taxable years beginning in nineteen hundred ninety-five, 4 (iii) twenty percent for taxable years beginning after nineteen hundred 5 ninety-five and before two thousand, (iv) twenty-two and one-half 6 percent for taxable years beginning in two thousand, (v) twenty-five 7 percent for taxable years beginning in two thousand one, (vi) twenty- 8 seven and one-half percent for taxable years beginning in two thousand 9 two, [and] (vii) thirty percent for taxable years beginning in two thou- 10 sand three, and (viii) forty-five percent for taxable years beginning in 11 two thousand nineteen and thereafter. Provided, however, that if the 12 reversion event, as defined in this paragraph, occurs, the applicable 13 percentage shall be twenty percent for taxable years ending on or after 14 the date on which the reversion event occurred. The reversion event 15 shall be deemed to have occurred on the date on which federal action, 16 including but not limited to, administrative, statutory or regulatory 17 changes, materially reduces or eliminates New York state's allocation of 18 the federal temporary assistance for needy families block grant, or 19 materially reduces the ability of the state to spend federal temporary 20 assistance for needy families block grant funds for the earned income 21 credit or to apply state general fund spending on the earned income 22 credit toward the temporary assistance for needy families block grant 23 maintenance of effort requirement, and the commissioner of the office of 24 temporary and disability assistance shall certify the date of such event 25 to the commissioner of taxation and finance, the director of the divi- 26 sion of the budget, the speaker of the assembly and the temporary presi- 27 dent of the senate. 28 § 2. This act shall take effect immediately and shall apply to taxable 29 years beginning on and after January 1, 2019. 30 PART E 31 Section 1. Section 686 of the tax law is amended by adding a new 32 subsection (j) to read as follows: 33 (j) Earned income tax credit.--A taxpayer eligible to receive an 34 earned income tax credit pursuant to subsection (d) of section six 35 hundred six of this article or an enhanced earned income tax credit 36 pursuant to subsection (d-1) of section six hundred six of this article 37 shall be prescribed the option to receive such credit in the following 38 manner: (i) for amounts equal to or less than two hundred dollars, the 39 payment or refund shall be made in a lump sum, (ii) for amounts in 40 excess of two hundred dollars and less than two thousand four hundred 41 dollars, the payment or refund shall be two hundred dollars a month for 42 the number of months equal to the total amount thereof divided by two 43 hundred and rounded down to the nearest whole number, and the remaining 44 balance of such payment or refund shall be made in the first month ther- 45 eafter, and (iii) for amounts equal to or greater than two thousand four 46 hundred dollars, the payment or refund shall be paid in equal monthly 47 payments equal to the total amount thereof divided by twelve. 48 § 2. This act shall take effect on the one hundred twentieth day after 49 it shall have become a law. Effective immediately, the commissioner of 50 taxation and finance is authorized to make any addition, amendment 51 and/or repeal of any rule or regulation necessary for the implementation 52 of this act on its effective date on or before such date. 53 PART FA. 4088 12 1 Section 1. Paragraph 1 of subsection (c) of section 606 of the tax 2 law, as amended by section 1 of part M of chapter 63 of the laws of 3 2000, is amended to read as follows: 4 (1) A taxpayer shall be allowed a credit as provided herein equal to 5 the applicable percentage of the credit allowable under section twenty- 6 one of the internal revenue code for the same taxable year (without 7 regard to whether the taxpayer in fact claimed the credit under such 8 section twenty-one for such taxable year). The applicable percentage 9 shall be the sum of (i) [twenty] sixty-two percent and (ii) a multiplier 10 multiplied by a fraction. For taxable years beginning in nineteen 11 hundred ninety-six and nineteen hundred ninety-seven, the numerator of 12 such fraction shall be the lesser of (i) four thousand dollars or (ii) 13 fourteen thousand dollars less the New York adjusted gross income for 14 the taxable year, provided, however, the numerator shall not be less 15 than zero. For the taxable year beginning in nineteen hundred ninety- 16 eight, the numerator of such fraction shall be the lesser of (i) thir- 17 teen thousand dollars or (ii) thirty thousand dollars less the New York 18 adjusted gross income for the taxable year, provided, however, the 19 numerator shall not be less than zero. For taxable years beginning in 20 nineteen hundred ninety-nine, the numerator of such fraction shall be 21 the lesser of (i) fifteen thousand dollars or (ii) fifty thousand 22 dollars less the New York adjusted gross income for the taxable year, 23 provided, however, the numerator shall not be less than zero. For taxa- 24 ble years beginning after nineteen hundred ninety-nine, the numerator of 25 such fraction shall be the lesser of (i) fifteen thousand dollars or 26 (ii) sixty-five thousand dollars less the New York adjusted gross income 27 for the taxable year, provided, however, the numerator shall not be less 28 than zero. The denominator of such fraction shall be four thousand 29 dollars for taxable years beginning in nineteen hundred ninety-six and 30 nineteen hundred ninety-seven, thirteen thousand dollars for the taxable 31 year beginning in nineteen hundred ninety-eight, and fifteen thousand 32 dollars for taxable years beginning after nineteen hundred ninety-eight. 33 The multiplier shall be ten percent for taxable years beginning in nine- 34 teen hundred ninety-six, forty percent for taxable years beginning in 35 nineteen hundred ninety-seven, [and] eighty percent for taxable years 36 beginning [after nineteen hundred ninety-seven] in nineteen hundred 37 ninety-eight, and one hundred thirty-eight percent for taxable years 38 beginning after two thousand nineteen. Provided, however, for taxable 39 years beginning after nineteen hundred ninety-nine, for a person whose 40 New York adjusted gross income is less than forty thousand dollars, such 41 applicable percentage shall be equal to (i) one hundred percent, plus 42 (ii) ten percent multiplied by a fraction whose numerator shall be the 43 lesser of (i) fifteen thousand dollars or (ii) forty thousand dollars 44 less the New York adjusted gross income for the taxable year, provided 45 such numerator shall not be less than zero, and whose denominator shall 46 be fifteen thousand dollars. Provided, however, for taxable years 47 beginning after two thousand nineteen, for a person whose New York 48 adjusted gross income is less than forty thousand dollars, such applica- 49 ble percentage shall be equal to (i) two hundred percent, plus (ii) 50 twenty percent multiplied by a fraction whose numerator shall be the 51 lesser of (i) fifteen thousand dollars or (ii) forty thousand dollars 52 less the New York adjusted gross income for the taxable year, provided 53 such numerator shall not be less than zero, and whose denominator shall 54 be fifteen thousand dollars. Provided, further, that if the reversion 55 event, as defined in this paragraph, occurs, the applicable percentage 56 shall, for taxable years ending on or after the date on which the rever-A. 4088 13 1 sion event occurred, be determined using the rules specified in this 2 paragraph applicable to taxable years beginning in nineteen hundred 3 ninety-nine. The reversion event shall be deemed to have occurred on the 4 date on which federal action, including but not limited to, administra- 5 tive, statutory or regulatory changes, materially reduces or eliminates 6 New York state's allocation of the federal temporary assistance for 7 needy families block grant, or materially reduces the ability of the 8 state to spend federal temporary assistance for needy families block 9 grant funds for the credit for certain household and dependent care 10 services necessary for gainful employment or to apply state general fund 11 spending on the credit for certain household and dependent care services 12 necessary for gainful employment toward the temporary assistance for 13 needy families block grant maintenance of effort requirement, and the 14 commissioner of the office of temporary and disability assistance shall 15 certify the date of such event to the commissioner, the director of the 16 division of the budget, the speaker of the assembly and the temporary 17 president of the senate. 18 § 2. Paragraph 1-a of subsection (c) of section 606 of the tax law is 19 REPEALED. 20 § 3. This act shall take effect immediately. 21 PART G 22 Section 1. Subdivision 1 of section 590 of the labor law, as amended 23 by chapter 645 of the laws of 1951, is amended to read as follows: 24 1. Entitlement to benefits. A claimant shall be entitled to accumulate 25 effective days for the purpose of benefit rights only if he has complied 26 with the provisions of this article regarding the filing of his claim, 27 including the filing of a valid original claim, registered as totally 28 unemployed or partially employed pursuant to section five hundred nine- 29 ty-a of this title, reported his subsequent employment and unemployment, 30 and reported for work or otherwise given notice of the continuance of 31 his unemployment. 32 § 2. The labor law is amended by adding a new section 590-a to read as 33 follows: 34 § 590-a. Reductions in unemployment benefits due to part-time work. 1. 35 Entitlement to benefits. Notwithstanding any other provision of law to 36 the contrary, any claimant who accepts part-time work shall be eligible 37 to collect partial unemployment pursuant to this section provided such 38 claimant meets the criteria outlined in this section. 39 2. Reporting part-time employment. A claimant collecting unemployment 40 who is paid for part-time employment while collecting unemployment shall 41 be required to report during each compensable period the amount of money 42 earned from such part-time work. 43 3. Benefit rate. A claimant's unemployment benefit shall be reduced by 44 fifty percent of the part-time income during a compensable period, in a 45 manner determined by the commissioner. 46 4. Penalties for false or inaccurate reporting. The provisions of 47 section five hundred ninety-four of this title shall control should a 48 claimant inaccurately report or fail to report the amount of part-time 49 wages earned during any compensable period. 50 § 3. This act shall take effect on the sixtieth day after it shall 51 have become a law; provided, however that the commissioner of labor may 52 promulgate any rules or regulations necessary for the implementation of 53 this act prior to such effective date.A. 4088 14 1 PART H 2 Section 1. The state finance law is amended by adding a new section 3 54-n to read as follows: 4 § 54-n. Aid to local governments for real property tax. 1. Defi- 5 nitions. As used in this section: 6 (a) The term "freeze-compliant budget" means a budget of a taxing 7 jurisdiction that has zero percent growth of the real property tax levy. 8 (b) The terms "independent special district" and "dependent school 9 district" have the same meanings as set forth in section three-d of the 10 general municipal law. 11 (c) The term "taxing jurisdiction" means a county, city, town, 12 village, school district or an independent special district; except that 13 such term shall not include a city with a population of one million or 14 more, nor shall it include a county wholly located within such a city. 15 (d) The term "tax levy limit" means the allowable levy growth factor 16 for a taxing jurisdiction, as determined pursuant to section three-c of 17 the general municipal law or section two thousand twenty-three-a of the 18 education law. 19 (e) The term "coming fiscal year" means the fiscal year of the taxing 20 jurisdiction for which a tax levy limit shall be determined, as deter- 21 mined pursuant to section three-c of the general municipal law or 22 section two thousand twenty-three-a of the education law. 23 2. The state shall provide aid to a taxing jurisdiction that enacts a 24 freeze-compliant budget for the coming fiscal year equal to two percent 25 of a taxing jurisdiction's prior fiscal year levy. Subject to the 26 provisions of subdivision three of this section, such aid shall be 27 determined as follows: 28 (a) If a taxing jurisdiction other than a dependent school district 29 has not previously received aid pursuant to this act and has a freeze- 30 compliant budget for its coming fiscal year, aid equal to two percent of 31 the taxing jurisdiction's prior fiscal year levy will be provided. 32 (b) If a taxing jurisdiction other than a dependent school district 33 has previously received aid pursuant to this chapter, the taxing juris- 34 diction shall continue to receive the aid amount designated in paragraph 35 (a) of this subdivision for each fiscal year the taxing jurisdiction 36 enacted a freeze-compliant budget. 37 3. The following shall apply to the calculation of the state aid for 38 counties pursuant to subdivision two of this section for counties that 39 qualify for the aid pursuant to subdivision two of this section, state 40 aid shall be calculated after taking into account the reduced county 41 property tax levy provisions found in paragraph (iv) of subdivision (c) 42 of section one of part C of chapter fifty-eight of the laws of two thou- 43 sand five, has been subtracted from the prior year levy. 44 § 2. The education law is amended by adding a new section 2023-c to 45 read as follows: 46 § 2023-c. Certification of compliance with state aid to local govern- 47 ments for real property. A school district that is subject to the 48 provisions of section two thousand twenty-three-a of this article must 49 comply with the requirements of subdivision two of this section in order 50 to be eligible for the aid authorized by section fifty-four-n of the 51 state finance law. 52 1. Definition. As used in this section: "Eligible school district" 53 means a school district that is subject to section two thousand twenty- 54 three-a of this article, but shall not mean a school district that is 55 subject to article fifty-two of this chapter.A. 4088 15 1 2. Certification of compliance with tax levy limit. (a) Upon the 2 adoption of the budget of an eligible school district, the chief execu- 3 tive officer of such school district shall certify to the state comp- 4 troller, the commissioner of taxation and finance and the commissioner 5 that the budget so adopted does not exceed the zero percent growth 6 prescribed by section fifty-four-n of the state finance law. Such 7 certification shall be made in a form and manner prescribed by the state 8 comptroller in consultation with the commissioner of taxation and 9 finance and the commissioner. 10 (b) In order for such certification to give rise to the aid under 11 section fifty-four-n of the state finance law, such certification shall 12 be made no later than the twenty-first day of the fiscal year to which 13 it applies. 14 (c) If such a certification has been made and the actual tax levy of 15 the school district exceeds zero percent growth, the excess amount shall 16 be placed in reserve and used in the manner prescribed by subdivision 17 five of section two thousand twenty-three-a of this article. 18 (d) Notwithstanding any provision of law to the contrary, every school 19 district that is subject to the provisions of section two thousand twen- 20 ty-three-a of this article shall report both its proposed budget and its 21 adopted budget to the state comptroller and the commissioner at the time 22 and in the manner as they may prescribe, whether or not such budget has 23 been or will be certified as provided by this subdivision. 24 (e) The director of the budget shall review the documents referred to 25 in paragraph a of this subdivision to determine whether the requirements 26 of section fifty-four-n of the state finance law have been met with 27 respect to an eligible school district and shall determine the total aid 28 payment amount for that fiscal year. 29 § 3. The general municipal law is amended by adding a new section 3-e 30 to read as follows: 31 § 3-e. Certification of compliance with state aid to local governments 32 for real property. 1. A local government that is subject to the 33 provisions of section three-c of this article must comply with the 34 requirements of subdivision two of section fifty-four-n of the state 35 finance law in order to be eligible for aid authorized by section 36 fifty-four-n of the state finance law. 37 2. Certification of compliance with tax levy limit. (a) Upon the 38 adoption of the budget of a local government unit, the chief executive 39 officer or budget officer of such local government unit shall certify to 40 the state comptroller and the commissioner of taxation and finance that 41 the budget so adopted does not exceed the zero percent growth prescribed 42 by section fifty-four-n of the state finance law. Such certification 43 shall be made in a form and manner prescribed by the state comptroller 44 in consultation with the commissioner of taxation and finance. Such 45 certification shall be made in a form and manner prescribed by the state 46 comptroller in consultation with the commissioner of taxation and 47 finance. For the purposes of this section, a local government unit means 48 a municipal corporation or an independent special district that is 49 subject to the provisions of section three-c of this article. 50 (b) In order for such certification to give rise to the aid under 51 section fifty-four-n of the state finance law, such certification shall 52 be made no later than the twenty-first day of the fiscal year to which 53 it applies. 54 (c) Notwithstanding any other law to the contrary, if such a certif- 55 ication has been made and the actual tax levy of the local government 56 unit exceeds the applicable zero percent growth, the excess amount shallA. 4088 16 1 be placed in reserve and used in the manner prescribed by subdivision 2 six of section three-c of this article. 3 (d) Notwithstanding any provision of law to the contrary, every local 4 government unit shall report both its proposed budget and its adopted 5 budget to the office of the state comptroller at the time and in the 6 manner as he or she may prescribe, whether or not such budget has been 7 or will be certified as provided by this subdivision. 8 § 4. This act shall take effect immediately. 9 PART I 10 Section 1. The general municipal law is amended by adding a new arti- 11 cle 12-J to read as follows: 12 ARTICLE 12-J 13 REAL PROPERTY TAX REDESIGN TEAM 14 Section 239-aaa. Creation of the real property tax redesign team. 15 § 239-aaa. Creation of the real property tax redesign team. 1. There 16 is hereby established the real property tax redesign team, which shall 17 consist of twenty members appointed by the governor. As used in this 18 article, the following terms shall have the following meanings: 19 a. "State officer or employee" shall have the same meaning as given in 20 section seventy-three of the public officers law; 21 b. "Local government" shall mean county, city, town, village or 22 special district; 23 c. "School district" shall mean a common, union free, central, city or 24 central high school district; 25 d. "Mandate" shall mean (i) any legal requirement that a local govern- 26 ment or school district provide or undertake any program, project or 27 activity, or increase spending for an existing program, project, regu- 28 lation or activity on behalf of New York state; or (ii) any legal 29 requirement that a local government or school district grant a new prop- 30 erty tax exemption or broaden the eligibility, or increase the value of 31 an existing property tax exemption; or (iii) any legal requirement that 32 otherwise would likely have the effect of raising property taxes. 33 2. The members of the team shall include: state officers or employees 34 with relevant expertise; two members of the New York state assembly, one 35 recommended by the speaker of the assembly and one recommended by the 36 minority leader of the assembly; two members of the New York state 37 senate, one recommended by the temporary president of the senate and one 38 recommended by the minority leader of the senate; and stakeholders with 39 expertise in the areas of: 40 a. local governments; 41 b. school districts; 42 c. businesses; 43 d. property tax assessment; 44 e. local government budgeting; 45 f. economic development; and 46 g. other relevant areas. 47 3. Vacancies shall be filled by the governor. Members of the team 48 shall serve at the pleasure of the governor. 49 4. The governor shall designate a chair or co-chairs from among the 50 members of the team. 51 5. The director of the budget shall serve as an ex-officio, non-voting 52 member of the team. 53 6. The duties and obligations of the real property tax redesign team 54 shall consist of making costs savings recommendations regarding theA. 4088 17 1 structure of the New York state property tax system and the adminis- 2 tration of mandated programs. The real property tax redesign team shall: 3 a. through the approval of a majority of its total members, develop 4 recommendations that result in annual recurring savings of at least five 5 hundred million dollars; 6 b. solicit and consider input from a broad and diverse range of 7 groups, organizations and individuals with interest or expertise in the 8 redesign or implementation of real property taxes in New York to assist 9 in the development of cost savings recommendations; and 10 c. convene within sixty days after the effective date of this article 11 and continue to convene twice every month thereafter for a period not to 12 exceed one year. 13 7. The team shall submit a final report one year after the first meet- 14 ing of the team to the senate, assembly and governor for consideration 15 in the following fiscal year's state budget. The report shall consist 16 of: 17 a. specific cost savings with a recommended procedure for implementa- 18 tion; 19 b. any necessary actions to be taken by the state legislature, local 20 governments or school districts for each recommendation; 21 c. recurring annual savings of each recommendation; and 22 d. the total recurring annual savings for all recommendations. 23 § 2. This act shall take effect immediately and shall be deemed 24 repealed five years after it shall have become a law. 25 PART J 26 Section 1. The general municipal law is amended by adding a new 27 section 3-f to read as follows: 28 § 3-f. Limitation upon real property tax levies by cities having a 29 population of one million or more. 1. Unless otherwise provided by law, 30 the amount of real property taxes that may be levied by or on behalf of 31 any city having a population of one million or more shall not exceed the 32 tax levy limitation established pursuant to this section. 33 2. When used in this section: 34 (a) "Allowable levy growth factor" shall be the lesser of: (i) one and 35 two one-hundredths; or (ii) the sum of one plus the inflation factor; 36 provided, however, that in no case shall the levy growth factor be less 37 than one. 38 (b) "Approved capital expenditures" means the expenditures associated 39 with capital projects that have been approved by the qualified voters of 40 the local government. 41 (c) "Available carryover" means the sum of the amount by which the tax 42 levy for the prior fiscal year was below the tax levy limit for such 43 fiscal year, if any, but no more than one and one-half percent of the 44 tax levy limit for such fiscal year. 45 (d) "Capital tax levy" means the tax levy necessary to support capital 46 expenditures, if any. 47 (e) "Coming fiscal year" means the fiscal year of the local government 48 for which a tax levy limitation shall be determined pursuant to this 49 section. 50 (f) "Inflation factor" means the quotient of: (i) the average of the 51 national consumer price indexes determined by the United States depart- 52 ment of labor for the twelve-month period ending six months prior to the 53 start of the coming fiscal year minus the average of the national 54 consumer price indexes determined by the United States department ofA. 4088 18 1 labor for the twelve-month period ending six months prior to the start 2 of the prior fiscal year, divided by: (ii) the average of the national 3 consumer price indexes determined by the United States department of 4 labor for the twelve-month period ending six months prior to the start 5 of the prior fiscal year, with the result expressed as a decimal to four 6 places. 7 (g) "Local government" means a city having a population of one million 8 or more. 9 (h) "Prior fiscal year" means the fiscal year of the local government 10 immediately preceding the coming fiscal year. 11 (i) "Tax levy limitation" means the amount of taxes a local government 12 is authorized to levy pursuant to this section, provided, however, that 13 the tax levy limit shall not include the local government's approved 14 capital tax levy, if any. 15 3. (a) Beginning with the fiscal year that begins in two thousand 16 twenty, no local government shall adopt a budget that requires a tax 17 levy that is greater than the tax levy limitation for the coming fiscal 18 year. 19 (b) The state comptroller shall calculate the tax levy limitation for 20 each local government by the one hundred twentieth day preceding the 21 commencement of each local government's fiscal year, and shall notify 22 each local government of the tax levy limitation so determined. 23 (c) The tax levy limitation applicable to the coming fiscal year shall 24 be determined as follows: 25 (i) Ascertain the total amount of taxes levied for the prior fiscal 26 year. 27 (ii) Add any payments in lieu of taxes that were receivable in the 28 prior fiscal year. 29 (iii) Subtract the approved capital tax levy for the prior fiscal 30 year, if any. 31 (iv) Subtract the levy attributable to a large legal settlement of a 32 tort action excluded from the levy limitation in the prior fiscal year, 33 if any. 34 (v) Multiply the result by the allowable levy growth factor. 35 (vi) Subtract any payments in lieu of taxes receivable in the coming 36 fiscal year. 37 (vii) Add the available carryover, if any. 38 (d) In the event the city council of a local government has approved a 39 legal settlement of a tort action against the government, the annual 40 costs of which exceed ten percent of the property taxes levied by the 41 local government in the prior fiscal year, the state comptroller, upon 42 application by the local government, may adjust the tax levy limitation 43 for the coming fiscal year applicable to such local government, by 44 adding the annual costs of such settlement to the tax levy limitation. 45 (e) The state comptroller shall determine the portion of the tax levy 46 of each local government that is attributable to any increase or 47 decrease over the prior year in the cost of the local government share 48 of direct cash assistance to persons eligible for the federal-state-lo- 49 cal temporary assistance to needy families program or the state-local 50 safety net assistance program and shall adjust the tax levy limitation 51 for such local government to reflect such change. 52 4. A local government may adopt a budget that requires a tax levy that 53 is greater than the tax levy limitation for the coming fiscal year only 54 if the city council of such local government first enacts, by a two- 55 thirds vote of the total voting power of such city council, a local law 56 to override such limitation for such coming fiscal year only.A. 4088 19 1 5. In the event a local government's actual tax levy for a given 2 fiscal year exceeds the maximum allowable levy as established pursuant 3 to this section due to clerical or technical errors, the local govern- 4 ment shall place the excess amount of the levy in reserve in accordance 5 with such requirements as the state comptroller may prescribe, and shall 6 use such funds and any interest earned thereon to offset the tax levy 7 for the ensuing fiscal year. 8 § 2. Paragraphs j and k of subdivision 2 of section 23 of the munici- 9 pal home rule law are relettered paragraphs k and l, and a new paragraph 10 j is added to read as follows: 11 j. Overrides the tax levy limitation applicable for the coming fiscal 12 year in accordance with section three-f of the general municipal law. 13 § 3. This act shall take effect immediately and shall first apply to 14 the levy of taxes by local governments for the fiscal year that begins 15 in 2020. 16 § 3. Severability clause. If any clause, sentence, paragraph, subdivi- 17 sion, section or part of this act shall be adjudged by any court of 18 competent jurisdiction to be invalid, such judgment shall not affect, 19 impair, or invalidate the remainder thereof, but shall be confined in 20 its operation to the clause, sentence, paragraph, subdivision, section 21 or part thereof directly involved in the controversy in which such judg- 22 ment shall have been rendered. It is hereby declared to be the intent of 23 the legislature that this act would have been enacted even if such 24 invalid provisions had not been included herein. 25 § 4. This act shall take effect immediately; provided, however, that 26 the applicable effective date of Parts A through J of this act shall be 27 as specifically set forth in the last section of such Parts.