Bill Text: NY A10496 | 2017-2018 | General Assembly | Introduced
Bill Title: Authorizes funds to municipalities from the UDC in the case of certain tax certiorari challenges or agreed upon settlements resulting in loss of tax revenues or increased tax levies of over twenty percent or in regards to a settlement agreement, a reduction in real property taxes or a payment in lieu of taxes of at least twenty percent in the aggregate over the term of such settlement agreement; and permits the establishment of tax certiorari stabilization reserve funds.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2018-04-30 - referred to ways and means [A10496 Detail]
Download: New_York-2017-A10496-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 10496 IN ASSEMBLY April 30, 2018 ___________ Introduced by M. of A. LAVINE -- read once and referred to the Committee on Economic Development AN ACT to amend subpart H of part C of chapter 20 of the laws of 2015, relating to appropriating money for certain municipal corporations and school districts, in relation to authorizing funds in the case of certain tax certiorari challenges or agreed upon settlements; and to permit certain boards of education to establish a tax certiorari stabilization reserve fund The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 1 of subpart H of part C of chapter 20 of the laws 2 of 2015, relating to appropriating money for certain municipal corpo- 3 rations and school districts, as amended by section 1 of part AAA of 4 chapter 59 of the laws of 2018, is amended to read as follows: 5 Section 1. Contingent upon available funding, and not to exceed 6 $69,000,000 moneys from the urban development corporation shall be 7 available for a local government entity, which for the purposes of this 8 section shall mean a county, city, town, village, school district or 9 special district, where (i) on or after June 25, 2015, an electric 10 generating facility located within such local government entity has 11 ceased operations, and (ii) the closing of such facility has caused a 12 reduction in the real property tax collections or payments in lieu of 13 taxes of at least twenty percent owed by such electric generating facil- 14 ity; or where, on or after April 1, 2018, a successful tax certiorari 15 challenge or an agreed upon settlement to the assessment of an electric 16 generating facility by the Long Island Power authority has resulted in 17 either a reduction in the real property tax collections or payments in 18 lieu of taxes of at least twenty percent, or in regards to a settlement 19 agreement a reduction in real property taxes or payments in lieu of 20 taxes of at least twenty percent in the aggregate over the term of the 21 settlement agreement, owed by such electric generating facility or has 22 resulted in a real property tax levy increase of over twenty percent of 23 a local government entity. Such moneys attributable to the cessation of 24 operations, a successful tax certiorari challenge, or an agreed upon EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD15267-11-8A. 10496 2 1 settlement, shall be paid annually on a first come, first served basis 2 by the urban development corporation to such local government entity 3 within a reasonable time upon confirmation from the state office of real 4 property tax services or the local industrial development authority 5 established pursuant to titles eleven and fifteen of article eight of 6 the public authorities law, or the local industrial development agency 7 established pursuant to article eighteen-A of the general municipal law 8 that such cessation, tax certiorari judgment, or an agreed upon settle- 9 ment has resulted in a reduction in the real property tax collections or 10 payments in lieu of taxes, provided, however, that the urban development 11 corporation shall not provide assistance to such local government entity 12 for more than seven years in the case of the closing of an electric 13 generating facility or in the case of a tax certiorari judgment or 14 agreed upon settlement for not more than fifteen years, and shall award 15 payments reflecting the loss of revenues due to the cessation of oper- 16 ations, tax certiorari judgment or an agreed upon settlement as follows: 17 Award [Year] Years Maximum Potential Award 18 1 no more than eighty percent of loss of revenues 19 2 no more than seventy percent of loss of revenues 20 3 no more than sixty percent of loss of revenues 21 4 no more than fifty percent of loss of revenues 22 5 no more than forty percent of loss of revenues 23 6 no more than thirty percent of loss of revenues 24 7-15 no more than twenty percent of loss of revenues 25 A local government entity shall be eligible for only one payment of 26 funds hereunder per year. A local government entity may seek assistance 27 under the electric generation facility cessation and tax certiorari 28 mitigation fund (i) once a generator has submitted its notice to the 29 federally designated electric bulk system operator (BSO) serving the 30 state of New York of its intent to retire the facility or of its intent 31 to voluntarily remove the facility from service subject to any return- 32 to-service provisions of any tariff, and that the facility also is inel- 33 igible to participate in the markets operated by the BSO; or (ii) once a 34 final judgment or settlement agreement in a tax certiorari proceeding 35 has been filed or executed. The date of submission of a local govern- 36 ment entity's application for assistance shall establish the order in 37 which assistance is paid to program applicants, except that in no event 38 shall assistance be paid to a local government entity until such time 39 that an electric generating facility has either (i) retired or become 40 ineligible to participate in the markets operated by the BSO, or (ii) a 41 final judgment or settlement agreement in a tax certiorari proceeding 42 has been filed or executed. For purposes of this section, any local 43 government entity seeking assistance under the electric generation 44 facility cessation and tax certiorari mitigation fund must submit an 45 attestation to the department of public service that either (i) a facil- 46 ity is no longer producing electricity and is no longer participating in 47 markets operated by the BSO, or (ii) a final judgment or settlement 48 agreement in a tax certiorari proceeding has been filed or executed. 49 [After] For facilities that have ceased operations after receipt of such 50 attestation, the department of public service shall confirm such infor- 51 mation with the BSO. In the case that the BSO confirms to the department 52 of public service that the facility is no longer producing electricity 53 and participating in markets operated by such BSO, it shall be deemed 54 that the electric generating facility located within the local govern-A. 10496 3 1 ment entity has ceased operation. The department of public service shall 2 provide such confirmation to the urban development corporation upon 3 receipt. [The] For a facility with a tax certiorari judgment or settle- 4 ment, the department of public service shall submit such attestation to 5 the urban development corporation upon receipt of the determination of 6 the amount of such annual payment which shall be determined by the pres- 7 ident of the urban development corporation based on the amount of the 8 differential between the annual real property taxes and payments in lieu 9 of taxes imposed upon the facility, exclusive of interest and penalties, 10 during the last year of operations and either (i) the current real prop- 11 erty taxes and payments in lieu of taxes imposed upon the facility, 12 exclusive of interest and penalties after the cessation of operations or 13 final judgment or settlement agreement in a tax certiorari proceeding, 14 or (ii) the annual reduction on real property taxes or payments in lieu 15 of taxes during the term of a settlement agreement from a tax certiorari 16 proceeding. The total amount awarded from this program shall not exceed 17 $69,000,000. 18 § 2. Tax certiorari stabilization reserve fund. (a) Definitions. As 19 used in this section: 20 (i) "Board of education" or "board" shall mean the board of education 21 of either: the Port Jefferson union free school district, the North- 22 port-East Northport union free school district, the North Shore central 23 school district, the Island Park union free school district, or any 24 other school district that is impacted by a tax certiorari action 25 brought by the Long Island Power Authority. 26 (ii) "Tax certiorari stabilization reserve fund" shall mean the tax 27 certiorari stabilization reserve fund established pursuant to this 28 section. 29 (iii) "School district" or "district" shall mean either: the Port 30 Jefferson union free school district, the Northport-East Northport union 31 free school district, the North Shore central school district, the 32 Island Park union free school district, or any other school district 33 that is impacted by a tax certiorari action brought by the Long Island 34 Power Authority. 35 (b) The board of education is hereby authorized to establish a tax 36 certiorari stabilization reserve fund to lessen or prevent increases in 37 the school district's real property tax levy resulting from decreases in 38 revenue due to a tax certiorari settlement or judgment provided, howev- 39 er, that no such fund shall be established unless approved by a majority 40 vote of the voters present and voting on a separate ballot proposition 41 therefor at either a special district meeting which the board of educa- 42 tion may call for such purpose or at the annual district meeting and 43 election, to be noticed and conducted in either case in accordance with 44 article 41 of the education law. Such separate proposition shall set 45 forth the maximum allowable balance to be deposited and held in the tax 46 certiorari stabilization reserve fund. Moneys shall be paid into and 47 withdrawn from the fund and the fund shall be administered as follows: 48 (i) The board of education is hereby authorized to receive payments 49 into its tax certiorari stabilization reserve fund from any annual funds 50 it is eligible to receive from the electric generating facility cessa- 51 tion fund. Such received allocations from the electric generating facil- 52 ity cessation fund shall not count against the district's maximum allow- 53 able fund balance for its tax certiorari stabilization reserve fund. 54 (ii) Moneys may be withdrawn from the tax certiorari stabilization 55 reserve fund for any fiscal year to be expended for any lawful purpose 56 to lessen or prevent increases in the district's tax levy. WithdrawalsA. 10496 4 1 from the fund shall be disclosed in a manner consistent with the 2 required disclosures of similar reserve funds held by the district, 3 including disclosures of similar reserve funds held by the district, 4 including disclosures required by the property tax report card prepared 5 by the district pursuant to the provisions of subdivision 7 of section 6 1716 of the education law; and deposits and withdrawals made in each 7 fiscal year shall be subject to the district's annual budget approval 8 process. 9 § 3. This act shall take effect immediately, provided, however, that 10 the amendments to section 1 of subpart H of part C of chapter 20 of the 11 laws of 2015 made by section one of this act shall not affect the repeal 12 of such subpart and shall be deemed repealed therewith.
