Bill Text: NY S08473 | 2023-2024 | General Assembly | Introduced
Bill Title: Amends provisions of the Suffolk county water quality restoration act relating to the expenditure of funds for certain water projects.
Spectrum: Bipartisan Bill
Status: (Introduced) 2024-05-16 - SUBSTITUTED BY A8993 [S08473 Detail]
Download: New_York-2023-S08473-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8473 IN SENATE February 1, 2024 ___________ Introduced by Sen. MARTINEZ -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to amend the county law, the tax law and the Suffolk county water quality restoration act, in relation to the use of moneys from the water quality restoration fund The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 2 of part TT of chapter 58 of the laws of 2023 2 constituting the Suffolk county water quality restoration act, is 3 amended to read as follows: 4 § 2. Legislative intent. The county of Suffolk ("county"), with a 5 population of one million five hundred thousand persons, has in excess 6 of three hundred eighty thousand existing onsite wastewater disposal 7 systems, comprised mostly of cesspools and septic systems, with two 8 hundred nine thousand of these onsite systems in environmentally sensi- 9 tive areas which could benefit from nitrogen-reducing technologies. The 10 United States Environmental Protection Agency recognizes Long Island as 11 having a sole source aquifer system for its drinking water supply. 12 Suffolk county has an imminent need to preserve this valuable water 13 resource by reducing the amount of nitrogen discharged into the ground- 14 water by onsite systems. The full water cycle is impacted by increasing 15 quantities of nutrients, pathogens, pesticides, volatile organic contam- 16 inants and saltwater intrusion, as well as a number of emerging threats 17 such as prescription drugs and sea level rise. 18 The Suffolk county subwatersheds wastewater plan ("SWP"), certified by 19 the department of environmental conservation as a Nine Elements 20 Watershed (9E) plan, has documented the devastating effects of high 21 levels of nitrogen pollution, not only on the drinking water quality, 22 but also on coastal ecosystems, dissolved oxygen, water clarity, 23 eelgrass, wetlands, shellfish, coastal resilience and in triggering 24 harmful algal blooms. The SWP is a long-term plan to address the need 25 for wastewater treatment infrastructure throughout the county comprehen- 26 sively over a period of fifty years. The SWP delineates the source and 27 concentration of nitrogen loading in one hundred ninety-one subwat- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13725-05-4S. 8473 2 1 ersheds throughout the county, and establishes nitrogen reduction goals 2 for each watershed. 3 For many areas of the county, installing or connecting sewers is not a 4 practical or cost-effective method of treating wastewater. For that 5 reason, the SWP prescribes a hybrid approach that relies on sewering 6 where feasible, and the replacement of cesspools and septic systems with 7 innovative/alternative onsite wastewater treatment systems. The consol- 8 idation of any or all of the twenty-seven county sewer districts, as 9 well as unsewered areas of the county, into a county-wide wastewater 10 management district, the establishment of a water quality restoration 11 fund, and a county board of trustees to monitor progress and the allo- 12 cation of resources consistent with the goals of the SWP would allow for 13 the implementation of a much needed integrated long-term wastewater 14 solution for the county through comprehensive planning and management to 15 improve water quality. 16 The purpose of this act is to create a water quality restoration fund 17 to finance projects for the protection, preservation, and rehabilitation 18 of groundwater and surface waters as recommended by the SWP. This act 19 would allow the funding of projects that will mitigate wastewater pollu- 20 tants utilizing the best available technology consistent with the SWP. 21 The water quality restoration fund would be financed with a dedicated 22 and recurring revenue source by the enactment of an additional sales and 23 compensating use tax at the rate of one-eighth of one percent until 24 2060. After deducting administrative and planning costs, fifty percent 25 of the revenue shall be dedicated to funding individual septic system 26 projects and fifty percent of the revenue shall be dedicated to funding 27 projects related to wastewater treatment facilities. Such tax would be 28 enacted pursuant to a mandatory referendum. 29 This act shall also provide Suffolk county with the authority to 30 create a county-wide wastewater management district through the consol- 31 idation of existing county sewer districts with currently unsewered 32 areas of the county. A county-wide wastewater management district will 33 provide an integrated and efficient approach to managing wastewater 34 services across the county; allow the county to enhance and expand its 35 incentive program to property owners to upgrade their wastewater treat- 36 ment systems; to manage, monitor and enforce nitrogen reduction programs 37 throughout the county; complete additional sewer extension projects; 38 improve the economic wellbeing of communities; and provide an opportu- 39 nity to consolidate and streamline the county's existing sewer district 40 system and normalize the inequitable rate structure that has long 41 existed. 42 In addition, this act will extend the existing one-quarter of one 43 percent sales tax utilized to finance the county drinking water 44 protection program until 2060. Twenty-five percent of such tax is appor- 45 tioned for sewer taxpayer protection. Beginning with the first fiscal 46 year after the adoption of the water quality restoration fund, a portion 47 of the net collections of such tax apportioned for sewer taxpayer 48 protection shall be transferred to the water quality restoration fund, 49 established pursuant to subdivision 11 of section 256-b of the county 50 law. Such revenues shall be dedicated solely to funding individual 51 septic system projects as defined in such subdivision. In the first 52 four years, the portion to be transferred from funds apportioned for 53 sewer taxpayer protection to the water quality restoration fund shall be 54 five percent. In year five, the portion to be transferred from funds 55 apportioned for sewer tax payer protection to the water quality restora- 56 tion fund shall be twenty percent. The amount to be transferred shallS. 8473 3 1 be thirty percent in year six, forty percent in year seven, fifty 2 percent in year eight, and seventy percent in years nine and ten. The 3 portion transferred to the fund shall be fifty percent in all years 4 thereafter. 5 § 2. Subdivision 11 of section 256-b of the county law, as added by 6 section 3 of part TT of chapter 58 of the laws of 2023, is amended to 7 read as follows: 8 11. Water quality restoration fund. (a) Notwithstanding any provision 9 of law to the contrary, the county of Suffolk shall deposit the net 10 collections from the sales and compensating use tax authorized by 11 section one thousand two hundred ten-F of the tax law into the Suffolk 12 county water quality restoration fund established in accordance there- 13 with, and shall utilize all monies transferred from the fund consistent 14 with this section. Nothing contained in this section shall be construed 15 to prevent the financing in whole or in part, pursuant to the local 16 finance law, of any project authorized pursuant to this section. Monies 17 from the fund may be utilized to repay any indebtedness or obligations 18 incurred pursuant to the local finance law consistent with effectuating 19 the purposes of this section. Where Suffolk county finances a project, 20 in whole, or in part, pursuant to the local finance law, the resolution 21 authorizing such indebtedness shall be accompanied by a report from the 22 county executive demonstrating how said indebtedness will be repaid by 23 the fund. Said report shall include an estimate of projected revenues of 24 the fund during the period of indebtedness. The report shall also 25 provide an accounting of all other indebtedness incurred against the 26 fund to be repaid for the same period. The county legislature shall 27 make findings by resolution that there will be sufficient revenue to 28 repay such indebtedness in its entirety from the fund before authorizing 29 such indebtedness. Monies in said fund may be appropriated from or 30 expended in any fiscal year to implement the powers set forth in this 31 section and to repay any indebtedness or obligations incurred pursuant 32 to the local finance law for the purposes authorized pursuant to this 33 section. 34 (b) (i) Water quality improvement projects shall be eligible for fund- 35 ing pursuant to this section. For purposes of this section, "water 36 quality improvement projects" shall mean: (A) the planning, design, 37 construction, acquisition, enlargement, extension, or alteration of a 38 county, town or village wastewater treatment facility, including indi- 39 vidual hookups, and projects for the reuse of treated effluent from such 40 wastewater treatment facilities, or (B) an individual septic system, 41 including an alternative wastewater treatment facility or an individual 42 septic system with active treatment, to treat, neutralize, stabilize, 43 eliminate or partially eliminate sewage or reduce pollutants, including 44 permanent or pilot demonstration wastewater treatment projects, or 45 equipment or furnishings thereof. In the case of individual septic 46 system projects, the funding of the operation and maintenance of such 47 projects shall be included in the definition of "water quality improve- 48 ment projects". Such projects shall have as their purpose the remedi- 49 ation of existing water quality to meet specific water quality standards 50 consistent with the SWP. Projects consistent with or listed in the SWP 51 that are part of a plan adopted by a local government resulting in a net 52 nitrogen reduction shall be eligible for consideration by the board of 53 trustees, established in accordance with subparagraph (i) of paragraph 54 (c) of this subdivision. 55 (ii) Of the annual collections [of the fund] from the tax imposed 56 pursuant to section one thousand two hundred ten-F of the tax law,S. 8473 4 1 administration of the county wastewater management district shall not 2 exceed ten percent. [Not less than seventy-five] The cost of prepara- 3 tion of an annual SWP implementation action plan to protect, preserve, 4 and rehabilitate groundwater, surface water, and drinking water shall be 5 included as part of such administrative costs. After first deducting 6 such administrative costs, fifty percent of the [remaining annual funds7after administration] net revenue from such tax shall be used toward 8 funding individual septic [systems] system projects and fifty percent of 9 the net revenue from such tax shall be used for funding projects related 10 to wastewater treatment facilities. [In addition to water quality11improvement projects, other eligible expenditures from the fund shall12include the preparation of an annual SWP implementation action plan to13protect, preserve, and rehabilitate groundwater, surface water, and14drinking water] All revenue transferred to the water quality restoration 15 fund from the tax imposed pursuant to section one thousand two hundred 16 ten-A of the tax law, as required by paragraph (iv) of subdivision (d) 17 of such section, shall be used solely to fund individual septic system 18 projects. 19 (iii) Other than for the payment of indebtedness or obligations 20 incurred as set forth in paragraph (a) of this subdivision, and except 21 for the preparation of the SWP implementation plan itself, no monies may 22 be expended until the SWP implementation plan has been prepared and 23 approved as provided for in this section. 24 (iv) Any expenditure from the fund for a purpose other than that 25 expressly permitted, herein, shall be prohibited. 26 (c) (i) Within the local law, ordinance or resolution establishing the 27 Suffolk county water quality restoration fund, [pursuant to section one28thousand two hundred ten-F of the tax law,] the county shall establish a 29 board of trustees of twenty-one members to prepare, review and approve 30 the SWP implementation plan for submission to the county executive and 31 county legislature and shall specify the powers and duties of the board 32 of trustees, including the procedures for appointment of a chairperson. 33 Such approval shall be in addition to all other approvals required by 34 law. The board of trustees shall consist of: (A) a representative from 35 the department of environmental conservation; (B) a representative from 36 the East End supervisors and mayors association; (C) a representative of 37 the Suffolk town supervisors association; (D) a representative of the 38 Suffolk County Village Officials Association; (E) a town representative 39 from the State Central Pine Barrens Joint Planning and Policy Commission 40 to be designated by the commission; (F) a municipal representative from 41 the Peconic Estuary Partnership; (G) a municipal representative from the 42 State South Shore Estuary Reserve; (H) a municipal representative from 43 the Long Island Sound Estuary; (I) a representative of the Long Island 44 Federation of Labor; (J) a representative of Building and Construction 45 Trades Council of Nassau & Suffolk counties; (K) a representative from a 46 regional environmental organization; (L) the chair of the Suffolk county 47 planning commission; (M) the county executive or designee; (N) the 48 presiding officer of the county legislature or designee; (O) the minori- 49 ty leader of the county legislature or designee; (P) the county depart- 50 ment of public works commissioner or designee; (Q) the county department 51 of health services commissioner or designee; (R) a representative from a 52 regional economic development organization; (S) a representative from 53 the liquid waste industry; (T) a representative from the Suffolk County 54 Alliance of Chambers, Inc.; and (U) a representative from the Long 55 Island Contractors Association.S. 8473 5 1 (ii) The powers and duties of the board of trustees shall [oversee] 2 include overseeing the annual audit pursuant to paragraph (e) of this 3 subdivision, making prudent recommendations for resource allocations for 4 county-approved alternative wastewater treatment technologies not 5 contemplated in the Suffolk county subwatersheds wastewater plan and 6 long-term progress monitoring of the implementation of the Suffolk coun- 7 ty subwatersheds wastewater plan regarding achievements of nitrogen load 8 reductions and ecological endpoints. 9 (d) Annual SWP implementation plan. The board of trustees shall 10 prepare, review and approve and submit to the county executive the SWP 11 implementation plan within one year of the effective date of this 12 section, and in every five years thereafter in a like manner. The board 13 of trustees shall conduct a public hearing on said plan before its 14 adoption or subsequent amendment. Said plan shall list every water qual- 15 ity restoration project which the county plans to undertake pursuant to 16 the fund and shall state how such project would improve existing water 17 quality. Funds may only be expended pursuant to this section for 18 projects which have been included in said plan. Said plan shall be 19 consistent with state, federal, county, and local government land use 20 and wastewater management plans. After submission and approval by the 21 county executive, such plan shall be submitted to the county legisla- 22 ture. Upon review, the county legislature shall determine, by local 23 law, whether to approve the proposed plan, if the plan is denied, the 24 plan shall be remanded to the board of trustees for further study. Such 25 plan shall not become effective until approved by local law. Projects 26 may be added or removed from the currently effective SWP implementation 27 plan in a like manner. 28 (e) Annual audit. The county shall annually commission an independent 29 audit of the fund. The audit shall be conducted by an independent certi- 30 fied public accountant or an independent public accountant. [Said] Such 31 audit shall be performed by a certified public accountant or an inde- 32 pendent public accountant other than the one that performs the general 33 audit of the county's finances. Such audit shall be an examination of 34 the fund and shall determine whether the fund has been administered 35 consistent with the provisions of this section and all other applicable 36 provisions of state law. Said audit shall be initiated within sixty days 37 of the close of the fiscal year of the county and shall be completed 38 within one hundred twenty days of the close of the fiscal year. A copy 39 of the audit shall be submitted annually to the state comptroller and 40 the county comptroller. A copy of the audit shall be made available to 41 the public within thirty days of its completion. A notice of the 42 completion of the audit shall be published in the official newspaper of 43 the county and shall also be posted on the internet website for the 44 county. The cost of the audit may be a charge to the fund. 45 (f) Annual report. In addition to any other report required by this 46 section, the board of trustees, through its chairperson, shall deliver 47 annually a report to the county legislature. Such report shall be 48 presented by May fifteenth of each year. The report shall describe in 49 detail the projects undertaken, the monies expended, and the administra- 50 tive activities of the water quality fund and district established in 51 accordance with this section, during the prior year. At the conclusion 52 of the report, the chairperson of the board of trustees shall be 53 prepared to answer the questions of the county legislature with respect 54 to the projects undertaken, the monies expended, and the administrative 55 activities during the past year. Any costs associated with preparing the 56 annual report shall be a charge to the fund.S. 8473 6 1 § 3. Subdivision (d) of section 1210-A of the tax law, as amended by 2 section 4-a of part TT of chapter 58 of the laws of 2023, is amended to 3 read as follows: 4 (d) Notwithstanding any other provision of this article to the contra- 5 ry, the net collections from the tax imposed pursuant to subdivision (a) 6 of this section for the period beginning December first, nineteen 7 hundred eighty-eight and ending November thirtieth, two thousand sixty 8 shall, upon payment to the county of Suffolk, be deposited in a special 9 fund, to be designated as a drinking water protection reserve fund, to 10 be created by said county therefor separate and apart from any other 11 funds and accounts of the county. Moneys in such fund shall be deposited 12 in one or more of the banks or trust companies designated, in the manner 13 provided by law, as a depository of the funds of such county. Pending 14 expenditure from such fund, moneys therein may be invested in the manner 15 provided in section eleven of the general municipal law. Any interest 16 earned or capital gain realized on the moneys so deposited or invested 17 shall accrue to and become part of such fund. Moneys in said fund may be 18 appropriated from and transferred to or expended in any fiscal year only 19 for the purposes of making payments pursuant to subdivisions (b) and (c) 20 of this section for the period beginning December first, nineteen 21 hundred eighty-eight, to the extent that moneys in said fund are remain- 22 ing, and if authorized by local law, for the following purposes: 23 (i) for the purposes of specific environmental protection (acquisition 24 of: farmland development rights; open space, wetlands, woodlands, pine 25 barrens and other lands for passive recreational uses; lands for hamlet 26 greens, hamlet parks, pocket parks, historic parks, cultural parks and 27 other lands for active/parkland recreational uses; lands necessary for 28 maintaining and protecting the quality of surface water, groundwater and 29 coastal resources); 30 (ii) for a water quality protection and restoration program or 31 programs and land stewardship initiatives; 32 (iii) for the purposes of county-wide property tax protection; and 33 (iv) for the purpose of sewer taxpayer protection (25% of the net 34 collections from the tax). Beginning with the first fiscal year after 35 the adoption of the water quality restoration fund, a portion of the net 36 collections of such tax apportioned for this purpose as provided for 37 herein, shall be transferred to the water quality restoration fund, 38 established pursuant to subdivision eleven of section two hundred 39 fifty-six-b of the county law. Said revenues shall be dedicated solely 40 to funding individual septic system projects as defined in such subdivi- 41 sion. The portion of net collections of the tax transferred to the water 42 quality restoration fund each year shall be as follows: 43 Year Percentage 44 1 5% 45 2 5% 46 3 5% 47 4 5% 48 5 20% 49 6 30% 50 7 40% 51 8 50% 52 9 70% 53 10 70%S. 8473 7 1 For all subsequent years, the portion of net collections transferred to 2 the water quality restoration fund shall be fifty percent. 3 Notwithstanding any special or local law, resolution or charter 4 provision to the contrary, moneys in said fund which have not been 5 appropriated from and transferred to or expended in any fiscal year for 6 the purposes of making payments pursuant to subdivisions (b) and (c) of 7 this section, may alternatively be appropriated for the purposes of 8 paying debt service on any new indebtedness incurred after the effective 9 date of the chapter of the laws of two thousand one that enacted this 10 paragraph pursuant to the local finance law in order to effectuate the 11 purposes described in paragraph (i) or (ii) of this subdivision. For the 12 purpose of allocating moneys in said fund pursuant to local law among 13 the purposes described in paragraphs (i), (ii), (iii) and (iv) of this 14 subdivision, moneys applied to the payment of debt service under the 15 authority of the previous sentence shall be considered by said county to 16 have been expended for the purposes for which such indebtedness was 17 incurred. 18 § 4. After January 1, 2030, the Suffolk county executive shall prepare 19 a report to be submitted to the governor and the legislature. Such 20 report shall make recommendations regarding any modifications to this 21 act, if any, with regard to the future distribution of revenue for water 22 quality improvement projects based upon the future demand for funding 23 for wastewater treatment projects and individual septic system projects. 24 § 5. This act shall take effect immediately.
