LBD12081-01-1
S. 5856 2 A. 8518
administrative code of the city of New York and the tax law, in
relation to deregulation thresholds; to amend the real property tax
law, in relation to tax exemption for new multiple dwellings and
exemption of certain new or substantially rehabilitated multiple
dwellings from local taxation and to amend the tax law, in relation to
verification of income (Part B); to amend the state finance law, in
relation to providing certain centralized services to political subdi-
visions and extending the authority of the commissioner of general
services to aggregate purchases of energy for state agencies and poli-
tical subdivisions; to amend the general municipal law, in relation to
purchasing information technology and telecommunications; to amend the
county law, in relation to contracts for services; to amend the gener-
al municipal law, in relation to certain federal contracts; to amend
the municipal home rule law, in relation to filing and publication of
local laws; and providing for the repeal of certain provisions upon
the expiration thereof (Subpart A); to amend the general municipal law
and the highway law, in relation to mutual aid (Subpart B); to amend
the general municipal law, in relation to apportioning the expenses of
police department members in attending police training schools; to
amend the criminal procedure law, in relation to the prosecution of
the offense of identity theft; to amend the family court act, in
relation to inter-county probation; to amend the mental hygiene law,
in relation to payment of costs for prosecution of inmate-patients;
and to repeal section 207-m of the general municipal law relating to
salary increases for heads of police departments of municipalities,
districts or authorities (Subpart C); to amend the general municipal
law, in relation to filing requirements for municipalities regarding
urban renewal plans and creation of urban renewal agencies and author-
ities (Subpart D); to amend the social services law, in relation to
the use of debit or credit cards for child care assistance payments;
and to amend the social services law, in relation to the length of
licenses to board children, training of child protective service case-
workers, services plans, funding for children and family services,
district-wide child welfare services plans, and non-residential
services for victims of domestic violence (Subpart E); to amend the
education law, in relation to census reporting; to amend the education
law, in relation to transportation of children receiving special
education services; to amend the education law, in relation to funding
of certain capital projects and auditing of claims; to amend the
education law, in relation to establishing a shared superintendent
program; and to amend the education law, in relation to cost-sharing
between districts; and to amend the general municipal law, in relation
to accounts of officers to be examined; and providing for the repeal
of certain provisions upon expiration thereof (Subpart F); to amend
the mental hygiene law and the social services law, in relation to the
implementation of medical support provisions (Subpart G); and to amend
the state administrative procedure act, in relation to alternate meth-
ods for implementing regulatory mandates; and to amend the executive
law, in relation to creation of the mandate relief council and provid-
ing for the expiration of such provisions (Subpart H) (Part C)
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
S. 5856 3 A. 8518
Section 1. This act enacts into law major components of legislation
relating to real property tax levies, rent regulation, exemption from
local taxation and mandate relief. Each component is wholly contained
within a Part identified as Parts A through C. The effective date for
each particular provision contained within such Part is set forth in the
last section of such Part. Any provision in any section contained within
a Part, including the effective date of the Part, which makes a refer-
ence to a section "of this act", when used in connection with that
particular component, shall be deemed to mean and refer to the corre-
sponding section of the Part in which it is found. Section three of this
act sets forth the general effective date of this act.
PART A
Section 1. The general municipal law is amended by adding a new
section 3-c to read as follows:
S 3-C. LIMIT UPON REAL PROPERTY TAX LEVIES BY LOCAL GOVERNMENTS. 1.
UNLESS OTHERWISE PROVIDED BY LAW, THE AMOUNT OF REAL PROPERTY TAXES THAT
MAY BE LEVIED BY OR ON BEHALF OF ANY LOCAL GOVERNMENT, OTHER THAN THE
CITY OF NEW YORK AND THE COUNTIES CONTAINED THEREIN, SHALL NOT EXCEED
THE TAX LEVY LIMIT ESTABLISHED PURSUANT TO THIS SECTION.
2. WHEN USED IN THIS SECTION:
(A) "ALLOWABLE LEVY GROWTH FACTOR" SHALL BE THE LESSER OF: (I) ONE AND
TWO ONE-HUNDREDTHS; OR (II) THE SUM OF ONE PLUS THE INFLATION FACTOR;
PROVIDED, HOWEVER, THAT IN NO CASE SHALL THE LEVY GROWTH FACTOR BE LESS
THAN ONE.
(B) "AVAILABLE CARRYOVER" MEANS THE AMOUNT BY WHICH THE TAX LEVY FOR
THE PRIOR FISCAL YEAR WAS BELOW THE TAX LEVY LIMIT FOR SUCH FISCAL YEAR,
IF ANY, BUT NO MORE THAN AN AMOUNT THAT EQUALS ONE AND ONE-HALF PERCENT
OF THE TAX LEVY LIMIT FOR SUCH FISCAL YEAR.
(C) "COMING FISCAL YEAR" MEANS THE FISCAL YEAR OF THE LOCAL GOVERNMENT
FOR WHICH A TAX LEVY LIMIT SHALL BE DETERMINED PURSUANT TO THIS SECTION.
(D) "INFLATION FACTOR" MEANS THE QUOTIENT OF: (I) THE AVERAGE OF THE
NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES DEPART-
MENT OF LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE
START OF THE COMING FISCAL YEAR MINUS THE AVERAGE OF THE NATIONAL
CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES DEPARTMENT OF
LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE START
OF THE PRIOR FISCAL YEAR, DIVIDED BY: (II) THE AVERAGE OF THE NATIONAL
CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES DEPARTMENT OF
LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE START
OF THE PRIOR FISCAL YEAR, WITH THE RESULT EXPRESSED AS A DECIMAL TO FOUR
PLACES.
(E) "LOCAL GOVERNMENT" MEANS A COUNTY, CITY, TOWN, VILLAGE, FIRE
DISTRICT, OR SPECIAL DISTRICT INCLUDING BUT NOT LIMITED TO A DISTRICT
CREATED PURSUANT TO ARTICLE TWELVE OR TWELVE-A, OR GOVERNED BY ARTICLE
THIRTEEN OF THE TOWN LAW, OR CREATED PURSUANT TO ARTICLE FIVE-A, FIVE-B
OR FIVE-D OF THE COUNTY LAW, CHAPTER FIVE HUNDRED SIXTEEN OF THE LAWS OF
NINETEEN HUNDRED TWENTY-EIGHT, OR CHAPTER TWO HUNDRED SEVENTY-THREE OF
THE LAWS OF NINETEEN HUNDRED THIRTY-NINE, AND SHALL INCLUDE TOWN
IMPROVEMENTS PROVIDED PURSUANT TO ARTICLES THREE-A AND TWELVE-C OF THE
TOWN LAW BUT SHALL NOT INCLUDE THE CITY OF NEW YORK OR THE COUNTIES
CONTAINED THEREIN.
(F) "PRIOR FISCAL YEAR" MEANS THE FISCAL YEAR OF THE LOCAL GOVERNMENT
IMMEDIATELY PRECEDING THE COMING FISCAL YEAR.
S. 5856 4 A. 8518
(G) "TAX LEVY LIMIT" MEANS THE AMOUNT OF TAXES AUTHORIZED TO BE LEVIED
BY OR ON BEHALF OF A LOCAL GOVERNMENT PURSUANT TO THIS SECTION,
PROVIDED, HOWEVER, THAT THE TAX LEVY LIMIT SHALL NOT INCLUDE THE FOLLOW-
ING:
(I) A TAX LEVY NECESSARY FOR EXPENDITURES RESULTING FROM COURT ORDERS
OR JUDGMENTS AGAINST THE LOCAL GOVERNMENT ARISING OUT OF TORT ACTIONS
FOR ANY AMOUNT THAT EXCEEDS FIVE PERCENT OF THE TOTAL TAX LEVIED IN THE
PRIOR FISCAL YEAR;
(II) IN YEARS IN WHICH THE SYSTEM AVERAGE ACTUARIAL CONTRIBUTION RATE
OF THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM, AS DEFINED
BY PARAGRAPH TEN OF SUBDIVISION A OF SECTION NINETEEN-A OF THE RETIRE-
MENT AND SOCIAL SECURITY LAW, INCREASES BY MORE THAN TWO PERCENTAGE
POINTS FROM THE PREVIOUS YEAR, A TAX LEVY NECESSARY FOR EXPENDITURES FOR
THE COMING FISCAL YEAR FOR LOCAL GOVERNMENT EMPLOYER CONTRIBUTIONS TO
THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM CAUSED BY
GROWTH IN THE SYSTEM AVERAGE ACTUARIAL CONTRIBUTION RATE MINUS TWO
PERCENTAGE POINTS;
(III) IN YEARS IN WHICH THE SYSTEM AVERAGE ACTUARIAL CONTRIBUTION RATE
OF THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM, AS
DEFINED BY PARAGRAPH ELEVEN OF SUBDIVISION A OF SECTION THREE HUNDRED
NINETEEN-A OF THE RETIREMENT AND SOCIAL SECURITY LAW, INCREASES BY MORE
THAN TWO PERCENTAGE POINTS FROM THE PREVIOUS YEAR, A TAX LEVY NECESSARY
FOR EXPENDITURES FOR THE COMING FISCAL YEAR FOR LOCAL GOVERNMENT EMPLOY-
ER CONTRIBUTIONS TO THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIRE-
MENT SYSTEM CAUSED BY GROWTH IN THE SYSTEM AVERAGE ACTUARIAL CONTRIB-
UTION RATE MINUS TWO PERCENTAGE POINTS;
(IV) IN YEARS IN WHICH THE NORMAL CONTRIBUTION RATE OF THE NEW YORK
STATE TEACHERS' RETIREMENT SYSTEM, AS DEFINED BY PARAGRAPH A OF SUBDIVI-
SION TWO OF SECTION FIVE HUNDRED SEVENTEEN OF THE EDUCATION LAW,
INCREASES BY MORE THAN TWO PERCENTAGE POINTS FROM THE PREVIOUS YEAR, A
TAX LEVY NECESSARY FOR EXPENDITURES FOR THE COMING FISCAL YEAR FOR LOCAL
GOVERNMENT EMPLOYER CONTRIBUTIONS TO THE NEW YORK STATE TEACHERS'
RETIREMENT SYSTEM CAUSED BY GROWTH IN THE NORMAL CONTRIBUTION RATE MINUS
TWO PERCENTAGE POINTS.
(H) "TAX" OR "TAXES" SHALL INCLUDE (I) A CHARGE IMPOSED UPON REAL
PROPERTY BY OR ON BEHALF OF A COUNTY, CITY, TOWN, VILLAGE OR SCHOOL
DISTRICT FOR MUNICIPAL OR SCHOOL DISTRICT PURPOSES, AND (II) SPECIAL AD
VALOREM LEVIES AND SPECIAL ASSESSMENTS AS DEFINED IN SUBDIVISIONS FOUR-
TEEN AND FIFTEEN OF SECTION ONE HUNDRED TWO OF THE REAL PROPERTY TAX
LAW.
3. (A) SUBJECT TO THE PROVISIONS OF SUBDIVISION FIVE OF THIS SECTION,
BEGINNING WITH THE FISCAL YEAR THAT BEGINS IN TWO THOUSAND TWELVE, NO
LOCAL GOVERNMENT SHALL ADOPT A BUDGET THAT REQUIRES A TAX LEVY THAT IS
GREATER THAN THE TAX LEVY LIMIT FOR THE COMING FISCAL YEAR. PROVIDED
HOWEVER THE TAX LEVY LIMIT SHALL NOT PROHIBIT A LEVY NECESSARY TO
SUPPORT THE EXPENDITURES PURSUANT TO SUBPARAGRAPHS (I) THROUGH (IV) OF
PARAGRAPH (G) OF SUBDIVISION TWO OF THIS SECTION.
(B)(I) THE COMMISSIONER OF TAXATION AND FINANCE SHALL CALCULATE A
QUANTITY CHANGE FACTOR FOR EACH LOCAL GOVERNMENT FOR THE COMING FISCAL
YEAR BASED UPON THE PHYSICAL OR QUANTITY CHANGE, AS DEFINED BY SECTION
TWELVE HUNDRED TWENTY OF THE REAL PROPERTY TAX LAW, REPORTED TO THE
COMMISSIONER OF TAXATION AND FINANCE BY THE ASSESSOR OR ASSESSORS PURSU-
ANT TO SECTION FIVE HUNDRED SEVENTY-FIVE OF THE REAL PROPERTY TAX LAW.
THE QUANTITY CHANGE FACTOR SHALL SHOW THE PERCENTAGE BY WHICH THE FULL
VALUE OF THE TAXABLE REAL PROPERTY IN THE LOCAL GOVERNMENT HAS CHANGED
DUE TO PHYSICAL OR QUANTITY CHANGE BETWEEN THE SECOND FINAL ASSESSMENT
S. 5856 5 A. 8518
ROLL OR ROLLS PRECEDING THE FINAL ASSESSMENT ROLL OR ROLLS UPON WHICH
TAXES ARE TO BE LEVIED, AND THE FINAL ASSESSMENT ROLL OR ROLLS IMME-
DIATELY PRECEDING THE FINAL ASSESSMENT ROLL OR ROLLS UPON WHICH TAXES
ARE TO BE LEVIED.
(II) AFTER DETERMINING THE QUANTITY CHANGE FACTOR FOR THE LOCAL
GOVERNMENT, THE COMMISSIONER OF TAXATION AND FINANCE SHALL PROCEED AS
FOLLOWS:
(A) IF THE QUANTITY CHANGE FACTOR IS NEGATIVE, THE COMMISSIONER OF
TAXATION AND FINANCE SHALL NOT DETERMINE A TAX BASE GROWTH FACTOR FOR
THE LOCAL GOVERNMENT.
(B) IF THE QUANTITY CHANGE FACTOR IS POSITIVE, THE COMMISSIONER OF
TAXATION AND FINANCE SHALL DETERMINE A TAX BASE GROWTH FACTOR FOR THE
LOCAL GOVERNMENT WHICH IS EQUAL TO ONE PLUS THE QUANTITY CHANGE FACTOR.
(III) THE COMMISSIONER OF TAXATION AND FINANCE SHALL NOTIFY THE STATE
COMPTROLLER AND EACH LOCAL GOVERNMENT OF THE APPLICABLE TAX BASE GROWTH
FACTORS, IF ANY, AS SOON THEREAFTER AS SUCH FACTORS ARE DETERMINED.
(C) EACH LOCAL GOVERNMENT SHALL CALCULATE THE TAX LEVY LIMIT APPLICA-
BLE TO THE COMING FISCAL YEAR WHICH SHALL BE DETERMINED AS FOLLOWS:
(I) ASCERTAIN THE TOTAL AMOUNT OF TAXES LEVIED FOR THE PRIOR FISCAL
YEAR.
(II) MULTIPLY THE RESULT BY THE TAX BASE GROWTH FACTOR, CALCULATED
PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION, IF ANY.
(III) ADD ANY PAYMENTS IN LIEU OF TAXES THAT WERE RECEIVABLE IN THE
PRIOR FISCAL YEAR.
(IV) SUBTRACT THE TAX LEVY NECESSARY TO SUPPORT EXPENDITURES PURSUANT
TO SUBPARAGRAPH (I) OF PARAGRAPH (G) OF SUBDIVISION TWO OF THIS SECTION
FOR THE PRIOR FISCAL YEAR, IF ANY.
(V) MULTIPLY THE RESULT BY THE ALLOWABLE LEVY GROWTH FACTOR.
(VI) SUBTRACT ANY PAYMENTS IN LIEU OF TAXES RECEIVABLE IN THE COMING
FISCAL YEAR.
(VII) ADD THE AVAILABLE CARRYOVER, IF ANY.
(D) WHENEVER THE RESPONSIBILITY AND ASSOCIATED COST OF A LOCAL GOVERN-
MENT FUNCTION IS TRANSFERRED TO ANOTHER LOCAL GOVERNMENT, THE STATE
COMPTROLLER SHALL DETERMINE THE COSTS AND SAVINGS ON THE AFFECTED LOCAL
GOVERNMENTS ATTRIBUTABLE TO SUCH TRANSFER FOR THE FIRST FISCAL YEAR
FOLLOWING THE TRANSFER, AND NOTIFY SUCH LOCAL GOVERNMENTS OF SUCH DETER-
MINATION AND THAT THEY SHALL ADJUST THEIR TAX LEVY LIMITS ACCORDINGLY.
4. (A) WHEN TWO OR MORE LOCAL GOVERNMENTS CONSOLIDATE, THE STATE COMP-
TROLLER SHALL DETERMINE THE TAX LEVY LIMIT FOR THE CONSOLIDATED LOCAL
GOVERNMENT FOR THE FIRST FISCAL YEAR FOLLOWING THE CONSOLIDATION BASED
ON THE RESPECTIVE TAX LEVY LIMITS OF THE COMPONENT LOCAL GOVERNMENTS
THAT FORMED SUCH CONSOLIDATED LOCAL GOVERNMENT FROM THE LAST FISCAL YEAR
PRIOR TO THE CONSOLIDATION.
(B) WHEN A LOCAL GOVERNMENT DISSOLVES, THE STATE COMPTROLLER SHALL
DETERMINE THE TAX LEVY LIMIT FOR THE LOCAL GOVERNMENT THAT ASSUMES THE
DEBTS, LIABILITIES, AND OBLIGATIONS OF SUCH DISSOLVED LOCAL GOVERNMENT
FOR THE FIRST FISCAL YEAR FOLLOWING THE DISSOLUTION BASED ON THE RESPEC-
TIVE TAX LEVY LIMITS OF SUCH DISSOLVED LOCAL GOVERNMENT AND SUCH LOCAL
GOVERNMENT THAT ASSUMES THE DEBTS, LIABILITIES, AND OBLIGATIONS OF SUCH
DISSOLVED LOCAL GOVERNMENT FROM THE LAST FISCAL YEAR PRIOR TO THE
DISSOLUTION.
(C) THE TAX LEVY LIMIT ESTABLISHED BY THIS SECTION SHALL NOT APPLY TO
THE FIRST FISCAL YEAR AFTER A LOCAL GOVERNMENT IS NEWLY ESTABLISHED OR
CONSTITUTED THROUGH A PROCESS OTHER THAN CONSOLIDATION OR DISSOLUTION.
5. A LOCAL GOVERNMENT MAY ADOPT A BUDGET THAT REQUIRES A TAX LEVY THAT
IS GREATER THAN THE TAX LEVY LIMIT FOR THE COMING FISCAL YEAR, NOT
S. 5856 6 A. 8518
INCLUDING ANY LEVY NECESSARY TO SUPPORT THE EXPENDITURES PURSUANT TO
SUBPARAGRAPHS (I) THROUGH (IV) OF PARAGRAPH G OF SUBDIVISION TWO OF THIS
SECTION, ONLY IF THE GOVERNING BODY OF SUCH LOCAL GOVERNMENT FIRST
ENACTS, BY A VOTE OF SIXTY PERCENT OF THE TOTAL VOTING POWER OF SUCH
BODY, A LOCAL LAW TO OVERRIDE SUCH LIMIT FOR SUCH COMING FISCAL YEAR
ONLY, OR IN THE CASE OF A DISTRICT OR FIRE DISTRICT, A RESOLUTION,
APPROVED BY A VOTE OF SIXTY PERCENT OF THE TOTAL VOTING POWER OF SUCH
BODY, TO OVERRIDE SUCH LIMIT FOR SUCH COMING FISCAL YEAR ONLY.
6. IN THE EVENT A LOCAL GOVERNMENT'S ACTUAL TAX LEVY FOR A GIVEN
FISCAL YEAR EXCEEDS THE TAX LEVY LIMIT AS ESTABLISHED PURSUANT TO THIS
SECTION DUE TO CLERICAL OR TECHNICAL ERRORS, THE LOCAL GOVERNMENT SHALL
PLACE THE EXCESS AMOUNT OF THE LEVY IN RESERVE IN ACCORDANCE WITH SUCH
REQUIREMENTS AS THE STATE COMPTROLLER MAY PRESCRIBE, AND SHALL USE SUCH
FUNDS AND ANY INTEREST EARNED THEREON TO OFFSET THE TAX LEVY FOR THE
ENSUING FISCAL YEAR. IF, UPON EXAMINATION PURSUANT TO SECTIONS THIRTY-
THREE AND THIRTY-FOUR OF THIS CHAPTER, THE STATE COMPTROLLER FINDS THAT
A LOCAL GOVERNMENT LEVIED TAXES IN EXCESS OF THE APPLICABLE TAX LEVY
LIMIT, THE LOCAL GOVERNMENT, AS SOON AS PRACTICABLE, SHALL PLACE AN
AMOUNT EQUAL TO THE EXCESS AMOUNT OF THE LEVY IN SUCH RESERVE IN ACCORD-
ANCE WITH THIS SUBDIVISION.
7. ALL LOCAL GOVERNMENTS SUBJECT TO THE PROVISIONS OF THIS SECTION
SHALL, PRIOR TO ADOPTING A BUDGET FOR THE COMING FISCAL YEAR, SUBMIT TO
THE STATE COMPTROLLER, IN A FORM AND MANNER AS HE OR SHE MAY PRESCRIBE,
ANY INFORMATION NECESSARY FOR CALCULATING THE TAX LEVY LIMIT FOR THE
COMING FISCAL YEAR.
S 2. The education law is amended by adding a new section 2023-a to
read as follows:
S 2023-A. LIMITATIONS UPON SCHOOL DISTRICT TAX LEVIES. 1. GENERALLY.
UNLESS OTHERWISE PROVIDED BY LAW, THE AMOUNT OF TAXES THAT MAY BE LEVIED
BY OR ON BEHALF OF ANY SCHOOL DISTRICT, OTHER THAN A CITY SCHOOL
DISTRICT OF A CITY WITH ONE HUNDRED TWENTY-FIVE THOUSAND INHABITANTS OR
MORE, SHALL NOT EXCEED THE TAX LEVY LIMIT ESTABLISHED PURSUANT TO THIS
SECTION, NOT INCLUDING ANY TAX LEVY NECESSARY TO SUPPORT THE EXPENDI-
TURES PURSUANT TO SUBPARAGRAPHS (I) THROUGH (IV) OF PARAGRAPH I OF
SUBDIVISION TWO OF THIS SECTION.
2. DEFINITIONS. AS USED IN THIS SECTION:
A. "ALLOWABLE LEVY GROWTH FACTOR" SHALL BE THE LESSER OF: (I) ONE AND
TWO ONE-HUNDREDTHS; OR (II) THE SUM OF ONE PLUS THE INFLATION FACTOR;
PROVIDED, HOWEVER, THAT IN NO CASE SHALL THE LEVY GROWTH FACTOR BE LESS
THAN ONE.
B. "AVAILABLE CARRYOVER" MEANS THE AMOUNT BY WHICH THE TAX LEVY FOR
THE PRIOR SCHOOL YEAR WAS BELOW THE APPLICABLE TAX LEVY LIMIT FOR SUCH
SCHOOL YEAR, IF ANY, BUT NO MORE THAN AN AMOUNT THAT EQUALS ONE AND
ONE-HALF PERCENT OF THE TAX LEVY LIMIT FOR SUCH SCHOOL YEAR.
C. "CAPITAL LOCAL EXPENDITURES" MEANS THE TAXES ASSOCIATED WITH BUDG-
ETED EXPENDITURES RESULTING FROM THE FINANCING, REFINANCING, ACQUISI-
TION, DESIGN, CONSTRUCTION, RECONSTRUCTION, REHABILITATION, IMPROVEMENT,
FURNISHING AND EQUIPPING OF, OR OTHERWISE PROVIDING FOR SCHOOL DISTRICT
CAPITAL FACILITIES OR SCHOOL DISTRICT CAPITAL EQUIPMENT, INCLUDING DEBT
SERVICE AND LEASE EXPENDITURES, AND TRANSPORTATION CAPITAL DEBT SERVICE,
SUBJECT TO THE APPROVAL OF THE QUALIFIED VOTERS WHERE REQUIRED BY LAW.
D. "CAPITAL TAX LEVY" MEANS THE TAX LEVY NECESSARY TO SUPPORT CAPITAL
LOCAL EXPENDITURES, IF ANY.
E. "COMING SCHOOL YEAR" MEANS THE SCHOOL YEAR FOR WHICH TAX LEVY
LIMITS ARE BEING DETERMINED PURSUANT TO THIS SECTION.
S. 5856 7 A. 8518
F. "INFLATION FACTOR" MEANS THE QUOTIENT OF: (I) THE AVERAGE OF THE
NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES DEPART-
MENT OF LABOR FOR THE TWELVE-MONTH PERIOD PRECEDING JANUARY FIRST OF THE
CURRENT YEAR MINUS THE AVERAGE OF THE NATIONAL CONSUMER PRICE INDEXES
DETERMINED BY THE UNITED STATES DEPARTMENT OF LABOR FOR THE TWELVE-MONTH
PERIOD PRECEDING JANUARY FIRST OF THE PRIOR YEAR, DIVIDED BY: (II) THE
AVERAGE OF THE NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE UNITED
STATES DEPARTMENT OF LABOR FOR THE TWELVE-MONTH PERIOD PRECEDING JANUARY
FIRST OF THE PRIOR YEAR, WITH THE RESULT EXPRESSED AS A DECIMAL TO FOUR
PLACES.
G. "PRIOR SCHOOL YEAR" MEANS THE SCHOOL YEAR IMMEDIATELY PRECEDING THE
COMING SCHOOL YEAR.
H. "SCHOOL DISTRICT" MEANS A COMMON SCHOOL DISTRICT, UNION FREE SCHOOL
DISTRICT, CENTRAL SCHOOL DISTRICT, CENTRAL HIGH SCHOOL DISTRICT OR A
CITY SCHOOL DISTRICT IN A CITY WITH LESS THAN ONE HUNDRED TWENTY-FIVE
THOUSAND INHABITANTS.
I. "TAX LEVY LIMIT" MEANS THE AMOUNT OF TAXES A SCHOOL DISTRICT IS
AUTHORIZED TO LEVY PURSUANT TO THIS SECTION, PROVIDED, HOWEVER, THAT THE
TAX LEVY LIMIT SHALL NOT INCLUDE THE FOLLOWING:
(I) A TAX LEVY NECESSARY FOR EXPENDITURES RESULTING FROM COURT ORDERS
OR JUDGMENTS AGAINST THE SCHOOL DISTRICT ARISING OUT OF TORT ACTIONS FOR
ANY AMOUNT THAT EXCEEDS FIVE PERCENT OF THE TOTAL TAX LEVIED IN THE
PRIOR SCHOOL YEAR;
(II) IN YEARS IN WHICH THE SYSTEM AVERAGE ACTUARIAL CONTRIBUTION RATE
OF THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM, AS DEFINED
BY PARAGRAPH TEN OF SUBDIVISION A OF SECTION NINETEEN-A OF THE RETIRE-
MENT AND SOCIAL SECURITY LAW, INCREASES BY MORE THAN TWO PERCENTAGE
POINTS FROM THE PREVIOUS YEAR, A TAX LEVY NECESSARY FOR EXPENDITURES FOR
THE COMING FISCAL YEAR FOR SCHOOL DISTRICT EMPLOYER CONTRIBUTIONS TO THE
NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM CAUSED BY GROWTH
IN THE SYSTEM AVERAGE ACTUARIAL CONTRIBUTION RATE MINUS TWO PERCENTAGE
POINTS;
(III) IN YEARS IN WHICH THE NORMAL CONTRIBUTION RATE OF THE NEW YORK
STATE TEACHERS' RETIREMENT SYSTEM, AS DEFINED BY PARAGRAPH A OF SUBDIVI-
SION TWO OF SECTION FIVE HUNDRED SEVENTEEN OF THIS CHAPTER, INCREASES BY
MORE THAN TWO PERCENTAGE POINTS FROM THE PREVIOUS YEAR, A TAX LEVY
NECESSARY FOR EXPENDITURES FOR THE COMING FISCAL YEAR FOR SCHOOL
DISTRICT EMPLOYER CONTRIBUTIONS TO THE NEW YORK STATE TEACHERS' RETIRE-
MENT SYSTEM CAUSED BY GROWTH IN THE NORMAL CONTRIBUTION RATE MINUS TWO
PERCENTAGE POINTS; AND
(IV) A CAPITAL TAX LEVY.
2-A. TAX BASE GROWTH FACTOR. A. NO LATER THAN FEBRUARY FIFTEENTH OF
EACH YEAR, THE COMMISSIONER OF TAXATION AND FINANCE SHALL IDENTIFY THOSE
SCHOOL DISTRICTS FOR WHICH TAX BASE GROWTH FACTORS MUST BE DETERMINED
FOR THE COMING SCHOOL YEAR, AND SHALL NOTIFY THE COMMISSIONER OF THE TAX
BASE GROWTH FACTORS SO DETERMINED, IF ANY.
B. THE COMMISSIONER OF TAXATION AND FINANCE SHALL CALCULATE A QUANTITY
CHANGE FACTOR FOR THE COMING SCHOOL YEAR FOR EACH SCHOOL DISTRICT BASED
UPON THE PHYSICAL OR QUANTITY CHANGE, AS DEFINED BY SECTION TWELVE
HUNDRED TWENTY OF THE REAL PROPERTY TAX LAW, REPORTED TO THE COMMISSION-
ER OF TAXATION AND FINANCE BY THE ASSESSOR OR ASSESSORS PURSUANT TO
SECTION FIVE HUNDRED SEVENTY-FIVE OF THE REAL PROPERTY TAX LAW. THE
QUANTITY CHANGE FACTOR SHALL SHOW THE PERCENTAGE BY WHICH THE FULL VALUE
OF THE TAXABLE REAL PROPERTY IN THE SCHOOL DISTRICT HAS CHANGED DUE TO
PHYSICAL OR QUANTITY CHANGE BETWEEN THE SECOND FINAL ASSESSMENT ROLL OR
ROLLS PRECEDING THE FINAL ASSESSMENT ROLL OR ROLLS UPON WHICH TAXES ARE
S. 5856 8 A. 8518
TO BE LEVIED, AND THE FINAL ASSESSMENT ROLL OR ROLLS IMMEDIATELY PRECED-
ING THE FINAL ASSESSMENT ROLL OR ROLLS UPON WHICH TAXES ARE TO BE
LEVIED.
C. AFTER DETERMINING THE QUANTITY CHANGE FACTOR FOR A SCHOOL DISTRICT,
THE COMMISSIONER OF TAXATION AND FINANCE SHALL PROCEED AS FOLLOWS:
(I) IF THE QUANTITY CHANGE FACTOR IS NEGATIVE, THE COMMISSIONER OF
TAXATION AND FINANCE SHALL NOT DETERMINE A TAX BASE GROWTH FACTOR FOR
THE SCHOOL DISTRICT.
(II) IF THE QUANTITY CHANGE FACTOR IS POSITIVE, THE COMMISSIONER OF
TAXATION AND FINANCE SHALL DETERMINE A TAX BASE GROWTH FACTOR FOR THE
SCHOOL DISTRICT WHICH IS EQUAL TO ONE PLUS THE QUANTITY CHANGE FACTOR.
3. COMPUTATION OF TAX LEVY LIMITS. A. EACH SCHOOL DISTRICT SHALL
CALCULATE THE TAX LEVY LIMIT FOR EACH SCHOOL YEAR WHICH SHALL BE DETER-
MINED AS FOLLOWS:
(1) ASCERTAIN THE TOTAL AMOUNT OF TAXES LEVIED FOR THE PRIOR SCHOOL
YEAR.
(2) MULTIPLY THE RESULT BY THE TAX BASE GROWTH FACTOR, IF ANY.
(3) ADD ANY PAYMENTS IN LIEU OF TAXES THAT WERE RECEIVABLE IN THE
PRIOR SCHOOL YEAR.
(4) SUBTRACT THE TAX LEVY NECESSARY TO SUPPORT THE EXPENDITURES PURSU-
ANT TO SUBPARAGRAPHS (I) AND (IV) OF PARAGRAPH I OF SUBDIVISION TWO OF
THIS SECTION FOR THE PRIOR SCHOOL YEAR, IF ANY.
(5) MULTIPLY THE RESULT BY THE ALLOWABLE LEVY GROWTH FACTOR.
(6) SUBTRACT ANY PAYMENTS IN LIEU OF TAXES RECEIVABLE IN THE COMING
FISCAL YEAR.
(7) ADD THE AVAILABLE CARRYOVER, IF ANY.
B. ON OR BEFORE MARCH FIRST OF EACH YEAR, ANY SCHOOL DISTRICT SUBJECT
TO THE PROVISIONS OF THIS SECTION SHALL SUBMIT TO THE STATE COMPTROLLER,
THE COMMISSIONER, AND THE COMMISSIONER OF TAXATION AND FINANCE, IN A
FORM AND MANNER PRESCRIBED BY THE STATE COMPTROLLER, ANY INFORMATION
NECESSARY FOR THE CALCULATION OF THE TAX LEVY LIMIT; AND THE SCHOOL
DISTRICT'S DETERMINATION OF THE TAX LEVY LIMIT PURSUANT TO THIS SECTION
SHALL BE SUBJECT TO REVIEW BY THE COMMISSIONER AND THE COMMISSIONER OF
TAXATION AND FINANCE.
4. REORGANIZED SCHOOL DISTRICTS. WHEN TWO OR MORE SCHOOL DISTRICTS
REORGANIZE, THE COMMISSIONER SHALL DETERMINE THE TAX LEVY LIMIT FOR THE
REORGANIZED SCHOOL DISTRICT FOR THE FIRST SCHOOL YEAR FOLLOWING THE
REORGANIZATION BASED ON THE RESPECTIVE TAX LEVY LIMITS OF THE SCHOOL
DISTRICTS THAT FORMED THE REORGANIZED DISTRICT FROM THE LAST SCHOOL YEAR
IN WHICH THEY WERE SEPARATE DISTRICTS, PROVIDED THAT IN THE EVENT OF
FORMATION OF A NEW CENTRAL HIGH SCHOOL DISTRICT, THE TAX LEVY LIMITS FOR
THE NEW CENTRAL HIGH SCHOOL DISTRICT AND ITS COMPONENT SCHOOL DISTRICTS
SHALL BE DETERMINED IN ACCORDANCE WITH A METHODOLOGY PRESCRIBED BY THE
COMMISSIONER.
5. ERRONEOUS LEVIES. IN THE EVENT A SCHOOL DISTRICT'S ACTUAL TAX LEVY
FOR A GIVEN SCHOOL YEAR EXCEEDS THE MAXIMUM ALLOWABLE LEVY AS ESTAB-
LISHED PURSUANT TO THIS SECTION DUE TO CLERICAL OR TECHNICAL ERRORS, THE
SCHOOL DISTRICT SHALL PLACE THE EXCESS AMOUNT OF THE LEVY IN RESERVE IN
ACCORDANCE WITH SUCH REQUIREMENTS AS THE STATE COMPTROLLER MAY
PRESCRIBE, AND SHALL USE SUCH FUNDS AND ANY INTEREST EARNED THEREON TO
OFFSET THE TAX LEVY FOR THE ENSUING SCHOOL YEAR.
6. (A) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, IN
THE EVENT THE TRUSTEE, TRUSTEES OR BOARD OF EDUCATION OF A SCHOOL
DISTRICT THAT IS SUBJECT TO THE PROVISIONS OF THIS SECTION PROPOSES A
BUDGET THAT WILL REQUIRE A TAX LEVY THAT EXCEEDS THE TAX LEVY LIMIT FOR
THE CORRESPONDING SCHOOL YEAR, NOT INCLUDING ANY LEVY NECESSARY TO
S. 5856 9 A. 8518
SUPPORT THE EXPENDITURES PURSUANT TO SUBPARAGRAPHS (I) THROUGH (IV) OF
PARAGRAPH I OF SUBDIVISION TWO OF THIS SECTION, THEN SUCH BUDGET SHALL
BE APPROVED IF SIXTY PERCENT OF THE VOTES CAST THEREON ARE IN THE AFFIR-
MATIVE.
(B) WHERE THE TRUSTEE, TRUSTEES OR BOARD OF EDUCATION PROPOSES A BUDG-
ET SUBJECT TO THE REQUIREMENTS OF PARAGRAPH (A) OF THIS SUBDIVISION, THE
BALLOT FOR SUCH BUDGET SHALL INCLUDE THE FOLLOWING STATEMENT IN SUBSTAN-
TIALLY THE SAME FORM: "ADOPTION OF THIS BUDGET REQUIRES A TAX LEVY
INCREASE OF WHICH EXCEEDS THE STATUTORY TAX LEVY INCREASE LIMIT
OF FOR THIS SCHOOL FISCAL YEAR AND THEREFORE EXCEEDS THE STATE TAX
CAP AND MUST BE APPROVED BY SIXTY PERCENT OF THE QUALIFIED VOTERS PRES-
ENT AND VOTING."
7. IN THE EVENT THAT THE ORIGINAL PROPOSED BUDGET IS NOT APPROVED BY
THE VOTERS, THE SOLE TRUSTEE, TRUSTEES OR BOARD OF EDUCATION MAY ADOPT A
FINAL BUDGET PURSUANT TO SUBDIVISION EIGHT OF THIS SECTION OR RESUBMIT
TO THE VOTERS THE ORIGINAL OR A REVISED BUDGET AT A SPECIAL DISTRICT
MEETING IN ACCORDANCE WITH SUBDIVISION THREE OF SECTION TWO THOUSAND
SEVEN OF THIS PART. UPON ONE DEFEAT OF SUCH RESUBMITTED BUDGET, THE
SOLE TRUSTEE, TRUSTEES OR BOARD OF EDUCATION SHALL ADOPT A FINAL BUDGET
PURSUANT TO SUBDIVISION EIGHT OF THIS SECTION.
8. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, IF THE
QUALIFIED VOTERS FAIL TO APPROVE THE PROPOSED SCHOOL DISTRICT BUDGET
UPON RESUBMISSION OR UPON A DETERMINATION NOT TO RESUBMIT FOR A SECOND
VOTE PURSUANT TO SUBDIVISION SEVEN OF THIS SECTION, THE SOLE TRUSTEE,
TRUSTEES OR BOARD OF EDUCATION SHALL LEVY A TAX NO GREATER THAN THE TAX
THAT WAS LEVIED FOR THE PRIOR SCHOOL YEAR.
9. NOTHING IN THIS SECTION SHALL PRECLUDE THE TRUSTEE, TRUSTEES, OR
BOARD OF EDUCATION OF A SCHOOL DISTRICT, IN THEIR DISCRETION, FROM
SUBMITTING ADDITIONAL ITEMS OF EXPENDITURES TO THE VOTERS FOR APPROVAL
AS SEPARATE PROPOSITIONS OR THE VOTERS FROM SUBMITTING PROPOSITIONS
PURSUANT TO SECTIONS TWO THOUSAND EIGHT AND TWO THOUSAND THIRTY-FIVE OF
THIS PART; PROVIDED HOWEVER, EXCEPT IN THE CASE OF A PROPOSITION SUBMIT-
TED FOR ANY EXPENDITURE CONTAINED WITHIN SUBPARAGRAPHS (I) THROUGH (IV)
OF PARAGRAPH I OF SUBDIVISION TWO OF THIS SECTION, IF ANY PROPOSITION,
OR PROPOSITIONS COLLECTIVELY THAT ARE SUBJECT TO A VOTE ON THE SAME
DATE, WOULD REQUIRE AN EXPENDITURE OF MONEY THAT WOULD REQUIRE A TAX
LEVY AND WOULD RESULT IN THE TAX LEVY LIMIT BEING EXCEEDED FOR THE
CORRESPONDING SCHOOL YEAR THEN SUCH PROPOSITION SHALL BE APPROVED IF
SIXTY PERCENT OF THE VOTES CAST THEREON ARE IN THE AFFIRMATIVE.
S 3. Section 2023 of the education law, as amended by section 24 of
part A of chapter 436 of the laws of 1997, subdivision 1 as amended by
chapter 682 of the laws of 2002, subparagraphs (v) and (vi) of paragraph
b of subdivision 4 as separately amended by section 1 of part D-2 of
chapter 57 of the laws of 2007 and chapter 422 of the laws of 2007,
subparagraph (vii) of paragraph b of subdivision 4 as added by section 1
of part D-2 of chapter 57 of the laws of 2007, subparagraph (vii) of
paragraph b of subdivision 4 as added by chapter 422 of the laws of 2007
and paragraph b-1 of subdivision 4 as amended by section 5 of part B of
chapter 57 of the laws of 2008, is amended to read as follows:
S 2023. Levy of tax for certain purposes without vote; contingency
budget. 1. If the qualified voters shall neglect or refuse to vote the
sum estimated necessary for teachers' salaries, after applying thereto
the public school moneys, and other moneys received or to be received
for that purpose, or if they shall neglect or refuse to vote the sum
estimated necessary for ordinary contingent expenses, including the
purchase of library books and other instructional materials associated
S. 5856 10 A. 8518
with a library and expenses incurred for interschool athletics, field
trips and other extracurricular activities and the expenses for cafete-
ria or restaurant services, the sole trustee, board of trustees, or
board of education shall adopt a contingency budget including such
expenses and shall levy a tax, SUBJECT TO THE RESTRICTIONS AS SET FORTH
IN SUBDIVISION FOUR OF THIS SECTION AND SUBDIVISION EIGHT OF SECTION TWO
THOUSAND TWENTY-THREE-A OF THIS PART, for the same, in like manner as if
the same had been voted by the qualified voters, subject to the limita-
tions contained in subdivisions three and four of this section.
2. Notwithstanding the defeat of a school budget, school districts
shall continue to transport students to and from the regular school
program in accordance with the mileage limitations previously adopted by
the qualified voters of the school district. Such mileage limits shall
change only when amended by a special proposition passed by a majority
of the qualified voters of the school district. In cases where the
school budget is defeated by such qualified voters of the school
district, appropriations for transportation costs for purposes other
than for transportation to and from the regular school program, and
transportation that would constitute an ordinary contingent expense
pursuant to subdivision one of this section, shall be authorized in the
budget only after approval by the qualified voters of the district.
3. The administrative component of a contingency budget shall not
comprise a greater percentage of the contingency budget exclusive of the
capital component than the lesser of (1) the percentage the administra-
tive component had comprised in the prior year budget exclusive of the
capital component; or (2) the percentage the administrative component
had comprised in the last proposed defeated budget exclusive of the
capital component.
4. a. The contingency budget shall not result in a [percentage
increase in total spending over the district's total spending under the
school district budget for the prior school year that exceeds the lesser
of: (i) the result obtained when one hundred twenty percent is multi-
plied by the percentage increase in the consumer price index, with the
result rounded to two decimal places; or (ii) four percent.
b. The following types of expenditures shall be disregarded in deter-
mining total spending:
(i) expenditures resulting from a tax certiorari proceeding;
(ii) expenditures resulting from a court order or judgment against the
school district;
(iii) emergency expenditures that are certified by the commissioner as
necessary as a result of damage to, or destruction of, a school building
or school equipment;
(iv) capital expenditures resulting from the construction, acquisi-
tion, reconstruction, rehabilitation or improvement of school facili-
ties, including debt service and lease expenditures, subject to the
approval of the qualified voters where required by law;
(v) expenditures in the contingency budget attributable to projected
increases in public school enrollment, which, for the purpose of this
subdivision, may include increases attributable to the enrollment of
students attending a pre-kindergarten program established in accordance
with section thirty-six hundred two-e of this chapter, to be computed
based upon an increase in enrollment from the year prior to the base
year for which the budget is being adopted to the base year for which
the budget is being adopted, provided that where the trustees or board
of education have documented evidence that a further increase in enroll-
ment will occur during the school year for which the contingency budget
S. 5856 11 A. 8518
is prepared because of new construction, inception of a pre-kindergarten
program, growth or similar factors, the expenditures attributable to
such additional enrollment may also be disregarded;
(vi) non-recurring expenditures in the prior year's school district
budget; and
(vii) expenditures for payments to charter schools pursuant to section
twenty-eight hundred fifty-six of this chapter.
(vii) expenditures for self-supporting programs. For purposes of this
subparagraph, "self-supporting programs" shall mean any programs that
are entirely funded by private funds that cover all the costs of the
program.
b-1. Notwithstanding any other provision of this subdivision to the
contrary, in the event a state grant in aid provided to the district in
the prior year is eliminated and incorporated into a non-categorical
general state aid in the current school year, the amount of such grant
may be included in the computation of total spending for the prior
school year, provided that the commissioner has verified that the grant
in aid has been incorporated into such non-categorical general state
aid] TAX LEVY GREATER THAN THE TAX LEVIED FOR THE PRIOR SCHOOL YEAR.
[c.] B. The resolution of the trustee, board of trustees, or board of
education adopting a contingency budget shall incorporate by reference a
statement specifying the projected percentage increase or decrease in
total spending for the school year, and explaining the reasons for
disregarding any portion of an increase in spending in formulating the
contingency budget.
[d.] C. Notwithstanding any other provision of law to the contrary,
the trustees or board of education shall not be authorized to amend or
revise a final contingency budget where such amendment or revision would
result in total spending in excess of the spending limitation in para-
graph (a) of this subdivision; provided that the trustees or board of
education shall be authorized to add appropriations for[:
(i) the categories of expenditures excluded from the spending limita-
tions set forth in paragraph (b) of this subdivision, subject to
approval of the qualified voters where required by law;
(ii) expenditures resulting from an actual increase in enrollment over
the projected enrollment used to develop the contingency budget,
provided that where such actual enrollment is less than such projected
enrollment, it shall be the duty of the trustees or board of education
to use such excess funds to reduce taxes; and
(iii)] the expenditure of gifts, grants in aid for specific purposes
or for general use or insurance proceeds authorized pursuant to subdivi-
sion two of [sudivision] SECTION seventeen hundred eighteen of this
chapter in addition to that which has been previously budgeted.
[e. For the purposes of this subdivision:
(i) "Base school year" shall mean the school year immediately preced-
ing the school year for which the contingency budget is prepared.
(ii) "Consumer price index" shall mean the percentage that represents
the average of the national consumer price indexes determined by the
United States department of labor, for the twelve month period preceding
January first of the current year.
(iii) "Current year" shall mean the calendar year in which the school
district budget is submitted for a vote of the qualified voters.
(iv) "Resident public school district enrollment shall mean the resi-
dent public school enrollment of the school district as defined in para-
graph n of subdivision one of section thirty-six hundred two of this
chapter.
S. 5856 12 A. 8518
(v) "Total spending" shall mean the total amount appropriated under
the school district budget for the school year.]
S 4. Paragraph a of subdivision 7 of section 1608 of the education
law, as amended by chapter 238 of the laws of 2007, is amended to read
as follows:
a. Each year, commencing with the proposed budget for the two thou-
sand--two thousand one school year, the trustee or board of trustees
shall prepare a property tax report card, pursuant to regulations of the
commissioner, and shall make it publicly available by transmitting it to
local newspapers of general circulation, appending it to copies of the
proposed budget made publicly available as required by law, making it
available for distribution at the annual meeting, and otherwise dissem-
inating it as required by the commissioner. Such report card shall
include: (i) the amount of total spending and total estimated school tax
levy that would result from adoption of the proposed budget and the
percentage increase or decrease in total spending and total school tax
levy from the school district budget for the preceding school year; and
(ii) THE DISTRICT'S TAX LEVY LIMIT DETERMINED PURSUANT TO SECTION TWO
THOUSAND TWENTY-THREE-A OF THIS TITLE, AND THE ESTIMATED SCHOOL TAX
LEVY, EXCLUDING ANY LEVY NECESSARY TO SUPPORT THE EXPENDITURES PURSUANT
TO SUBPARAGRAPHS (I) THROUGH (IV) OF PARAGRAPH I OF SUBDIVISION TWO OF
SECTION TWO THOUSAND TWENTY-THREE-A OF THIS TITLE, THAT WOULD RESULT
FROM ADOPTION OF THE PROPOSED BUDGET; AND (III) the projected enrollment
growth for the school year for which the budget is prepared, and the
percentage change in enrollment from the previous year; and [(iii)] (IV)
the percentage increase in the consumer price index, as defined in para-
graph c of this subdivision; and [(iv)] (V) the projected amount of the
unappropriated unreserved fund balance that will be retained if the
proposed budget is adopted, the projected amount of the reserved fund
balance, the projected amount of the appropriated fund balance, the
percentage of the proposed budget that the unappropriated unreserved
fund balance represents, the actual unappropriated unreserved fund
balance retained in the school district budget for the preceding school
year, and the percentage of the school district budget for the preceding
school year that the actual unappropriated unreserved fund balance
represents.
S 5. Paragraph a of subdivision 7 of section 1716 of the education
law, as amended by chapter 238 of the laws of 2007, is amended to read
as follows:
a. Each year, commencing with the proposed budget for the two thou-
sand--two thousand one school year, the board of education shall prepare
a property tax report card, pursuant to regulations of the commissioner,
and shall make it publicly available by transmitting it to local newspa-
pers of general circulation, appending it to copies of the proposed
budget made publicly available as required by law, making it available
for distribution at the annual meeting, and otherwise disseminating it
as required by the commissioner. Such report card shall include: (i) the
amount of total spending and total estimated school tax levy that would
result from adoption of the proposed budget and the percentage increase
or decrease in total spending and total school tax levy from the school
district budget for the preceding school year; and (ii) THE DISTRICT'S
TAX LEVY LIMIT DETERMINED PURSUANT TO SECTION TWO THOUSAND
TWENTY-THREE-A OF THIS TITLE, AND THE ESTIMATED SCHOOL TAX LEVY, EXCLUD-
ING ANY LEVY NECESSARY TO SUPPORT THE EXPENDITURES PURSUANT TO SUBPARA-
GRAPHS (I) THROUGH (IV) OF PARAGRAPH I OF SUBDIVISION TWO OF SECTION TWO
THOUSAND TWENTY-THREE-A OF THIS TITLE, THAT WOULD RESULT FROM ADOPTION
S. 5856 13 A. 8518
OF THE PROPOSED BUDGET; AND (III) the projected enrollment growth for
the school year for which the budget is prepared, and the percentage
change in enrollment from the previous year; and [(iii)] (IV) the
percentage increase in the consumer price index, as defined in paragraph
c of this subdivision; and [(iv)] (V) the projected amount of the unap-
propriated unreserved fund balance that will be retained if the proposed
budget is adopted, the projected amount of the reserved fund balance,
the projected amount of the appropriated fund balance, the percentage of
the proposed budget that the unappropriated unreserved fund balance
represents, the actual unappropriated unreserved fund balance retained
in the school district budget for the preceding school year, and the
percentage of the school district budget for the preceding school year
that the actual unappropriated unreserved fund balance represents.
S 6. Section 2008 of the education law is amended by adding a new
subdivision 3 to read as follows:
3. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, ANY
PROPOSITION SUBMITTED BY THE VOTERS THAT REQUIRES THE EXPENDITURE OF
MONEY SHALL BE SUBJECT TO THE REQUIREMENTS SET FORTH IN SUBDIVISION NINE
OF SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART.
S 7. Section 2022 of the education law, as amended by section 23 of
part A of chapter 436 of the laws of 1997, subdivisions 1 and 3 as
amended by section 8 of part C of chapter 58 of the laws of 1998, subdi-
vision 2-a as amended by section 3 of part A of chapter 60 of the laws
of 2000, paragraph b of subdivision 2-a as amended by section 5 of part
W of chapter 57 of the laws of 2008, subdivision 4 as amended by section
7 of part M of chapter 57 of the laws of 2005 and subdivision 6 as added
by chapter 61 of the laws of 2003, is amended to read as follows:
S 2022. Vote on school district budgets and on the election of school
district trustees and board of education members. 1. Notwithstanding any
law, rule or regulation to the contrary, the election of trustees or
members of the board of education, and the vote upon the appropriation
of the necessary funds to meet the estimated expenditures, in any common
school district, union free school district, central school district or
central high school district shall be held at the annual meeting and
election on the third Tuesday in May, provided, however, that such
election shall be held on the second Tuesday in May if the commissioner
at the request of a local school board certifies no later than March
first that such election would conflict with religious observances.
[When such election or vote is taken by recording the ayes and noes of
the qualified voters attending, a majority of the qualified voters pres-
ent and voting, by a hand or voice vote, may determine to take up the
question of voting the necessary funds to meet the estimated expendi-
tures for a specific item separately, and the qualified voters present
and voting may increase the amount of any estimated expenditures or
reduce the same, except for teachers' salaries, and the ordinary contin-
gent expenses of the schools.] The sole trustee, board of trustees or
board of education of every common, union free, central or central high
school district and every city school district to which this article
applies shall hold a budget hearing not less than seven nor more than
fourteen days prior to the annual meeting and election or special
district meeting at which a school budget vote will occur, and shall
prepare and present to the voters at such budget hearing a proposed
school district budget for the ensuing school year.
2. Except as provided in subdivision four of this section, nothing in
this section shall preclude the trustees or board of education, in their
discretion, from submitting additional items of expenditure to the
S. 5856 14 A. 8518
voters for approval as separate propositions or the voters from submit-
ting propositions pursuant to [section] SECTIONS two thousand eight and
two thousand thirty-five of this [article] PART; PROVIDED HOWEVER THAT
SUCH PROPOSITIONS SHALL BE SUBJECT TO THE REQUIREMENTS SET FORTH IN
SUBDIVISION NINE OF SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART.
2-a. Every common, union free, central, central high school district
and city school district to which this article applies shall mail a
school budget notice to all qualified voters of the school district
after the date of the budget hearing, but no later than six days prior
to the annual meeting and election or special district meeting at which
a school budget vote will occur. The school budget notice shall compare
the percentage increase or decrease in total spending under the proposed
budget over total spending under the school district budget adopted for
the current school year, with the percentage increase or decrease in the
consumer price index, from January first of the prior school year to
January first of the current school year, and shall also include the
information required by paragraphs a and b of this subdivision. The
notice shall also set forth the date, time and place of the school budg-
et vote, in the same manner as in the notice of annual meeting, AND
SHALL ALSO INCLUDE THE DISTRICT'S TAX LEVY LIMIT PURSUANT TO SECTION TWO
THOUSAND TWENTY-THREE-A OF THIS PART, AND THE ESTIMATED SCHOOL TAX LEVY,
EXCLUDING ANY LEVY NECESSARY TO SUPPORT THE EXPENDITURES PURSUANT TO
SUBPARAGRAPHS (I) THROUGH (IV) OF PARAGRAPH I OF SUBDIVISION TWO OF
SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART, THAT WOULD RESULT FROM
ADOPTION OF THE PROPOSED BUDGET. Such notice shall be in a form
prescribed by the commissioner.
a. Commencing with the proposed budget for the two thousand one--two
thousand two school year, such notice shall also include a description
of how total spending and the tax levy resulting from the proposed budg-
et would compare with a projected contingency budget adopted pursuant to
section two thousand twenty-three of this article, assuming that such
contingency budget is adopted on the same day as the vote on the
proposed budget. Such comparison shall be in total and by component
(program, capital and administrative), and shall include a statement of
the assumptions made in estimating the projected contingency budget.
b. Commencing with the proposed budget for the two thousand eight--two
thousand nine school year, such notice shall also include, in a format
prescribed by the commissioner, an estimate of the tax savings that
would be available to an eligible homeowner under the basic school tax
relief (STAR) exemption authorized by section four hundred twenty-five
of the real property tax law if the proposed budget were adopted. Such
estimate shall be made in the manner prescribed by the commissioner, in
consultation with the office of real property services.
3. In all elections for trustees or members of boards of education or
votes involving the expenditure of money, or authorizing the levy of
taxes, the vote thereon shall be by ballot, or, in school districts that
prior to nineteen hundred ninety-eight conducted their vote at the annu-
al meeting, may be ascertained by taking and recording the ayes and noes
of such qualified voters attending and voting at such district meetings.
4. THE BUDGET ADOPTION PROCESS SHALL CONFORM TO THE REQUIREMENTS SET
FORTH IN SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART. In the event
that the original proposed budget is not approved by the voters, the
sole trustee, trustees or board of education may adopt a final budget
pursuant to subdivision five of this section or resubmit to the voters
the original or a revised budget pursuant to subdivision three of
section two thousand seven of this part. Upon one defeat of such resub-
S. 5856 15 A. 8518
mitted budget, the sole trustee, trustees or board of education shall
adopt a final budget pursuant to subdivision five of this section.
Notwithstanding any other provision of law to the contrary, the school
district budget for any school year, or any part of such budget or any
propositions involving the expenditure of money for such school year
shall not be submitted for a vote of the qualified voters more than
twice.
5. If the qualified voters fail to approve the proposed school
district budget upon resubmission or upon a determination not to resub-
mit for a second vote pursuant to subdivision four of this section, the
sole trustee, trustees or board of education, after applying thereto the
public school moneys and other moneys received or to be received for
that purpose, shall levy a tax for the sum necessary for teachers' sala-
ries and other ordinary contingent expenses in accordance with the
provisions of this subdivision and [section] SECTIONS two thousand twen-
ty-three AND TWO THOUSAND TWENTY-THREE-A of this article.
6. Notwithstanding the provisions of subdivision four of section eigh-
teen hundred four and subdivision five of section nineteen hundred six
of this title, subdivision one of section two thousand two of this arti-
cle, subdivision one of this section, subdivision two of section twen-
ty-six hundred one-a of this title and any other provision of law to the
contrary, the annual district meeting and election of every common,
union free, central and central high school district and the annual
meeting of every city school district in a city having a population of
less than one hundred twenty-five thousand inhabitants that is scheduled
to be held on the third Tuesday of May, two thousand three is hereby
adjourned until the first Tuesday in June, two thousand three. The trus-
tees or board of education of each such school district shall provide
notice of such adjourned meeting to the qualified voters in the manner
prescribed for notice of the annual meeting, and such notice shall
provide for an adjourned budget hearing. The adjourned district meeting
or district meeting and election shall be deemed the annual meeting or
annual meeting and election of the district for all purposes under this
title and the date of the adjourned meeting shall be deemed the state-
wide uniform voting day for all purposes under this title. Notwith-
standing the provisions of subdivision seven of section sixteen hundred
eight or subdivision seven of section seventeen hundred sixteen of this
title or any other provision of law, rule or regulation to the contrary,
in two thousand three the property tax report card shall be submitted to
the department no later than twenty days prior to the date of the
adjourned meeting and the department shall make its compilation avail-
able electronically at least seven days prior to such date.
S 8. Section 2035 of the education law is amended by adding a new
subdivision 3 to read as follows:
3. ANY PROPOSITION SUBMITTED PURSUANT TO THIS SECTION SHALL BE SUBJECT
TO THE REQUIREMENTS SET FORTH IN SUBDIVISION NINE OF SECTION TWO THOU-
SAND TWENTY-THREE-A OF THIS PART.
S 9. Section 2601-a of the education law, as added by chapter 171 of
the laws of 1996, subdivision 2 as amended by section 6 and subdivision
4 as amended by section 8 of part M of chapter 57 of the laws of 2005,
subdivision 3 as amended by chapter 640 of the laws of 2008, subdivision
5 as amended by section 29 of part A of chapter 436 of the laws of 1997,
subdivision 6 as amended and subdivision 7 as added by chapter 474 of
the laws of 1996, is amended to read as follows:
S 2601-a. Procedures for adoption of school budgets in small city
school districts. 1. The board of education of each city school district
S. 5856 16 A. 8518
subject to this article shall provide for the submission of a budget for
approval of the voters pursuant to the provisions of this section AND IN
ACCORDANCE WITH THE REQUIREMENTS SET FORTH IN SECTION TWO THOUSAND TWEN-
TY-THREE-A OF THIS TITLE.
2. The board of education shall conduct all annual and special school
district meetings for the purpose of adopting a school district budget
in the same manner as a union free school district in accordance with
the provisions of article forty-one of this title, except as otherwise
provided by this section. The annual meeting and election of each such
city school district shall be held on the third Tuesday of May in each
year, provided, however that such annual meeting and election shall be
held on the second Tuesday in May if the commissioner at the request of
a local school board certifies no later than March first that such
election would conflict with religious observances, and any school budg-
et revote shall be held on the date and in the same manner specified in
subdivision three of section two thousand seven of this title. The
provisions of this article, and where applicable subdivisions nine and
nine-a of section twenty-five hundred two of this title, governing the
qualification and registration of voters, and procedures for the nomi-
nation and election of members of the board of education shall continue
to apply, and shall govern the qualification and registration of voters
and voting procedures with respect to the adoption of a school district
budget.
3. The board of education shall prepare a proposed school district
budget for the ensuing year in accordance with the provisions of section
seventeen hundred sixteen of this chapter, including all provisions
relating to required notices and appendices to the statement of expendi-
tures. No board of education shall incur a school district liability
except as authorized by the provisions of section seventeen hundred
eighteen of this chapter. Such proposed budget shall be presented in
three components: a program component, a capital component and an admin-
istrative component which shall be separately delineated in accordance
with regulations of the commissioner after consultation with local
school district officials. The administrative component shall include,
but need not be limited to, office and central administrative expenses,
traveling expenses and all compensation, salaries and benefits of all
school administrators and supervisors, including business administra-
tors, superintendents of schools and deputy, assistant, associate or
other superintendents under all existing employment contracts or collec-
tive bargaining agreements, any and all expenditures associated with the
operation of the board of education, the office of the superintendent of
schools, general administration, the school business office, consulting
costs not directly related to direct student services and programs,
planning and all other administrative activities. The program component
shall include, but need not be limited to, all program expenditures of
the school district, including the salaries and benefits of teachers and
any school administrators or supervisors who spend a majority of their
time performing teaching duties, and all transportation operating
expenses. The capital component shall include, but need not be limited
to, all transportation capital, debt service, and lease expenditures;
costs resulting from judgments in tax certiorari proceedings or the
payment of awards from court judgments, administrative orders or settled
or compromised claims; and all facilities costs of the school district,
including facilities lease expenditures, the annual debt service and
total debt for all facilities financed by bonds and notes of the school
district, and the costs of construction, acquisition, reconstruction,
S. 5856 17 A. 8518
rehabilitation or improvement of school buildings, provided that such
budget shall include a rental, operations and maintenance section that
includes base rent costs, total rent costs, operation and maintenance
charges, cost per square foot for each facility leased by the school
district, and any and all expenditures associated with custodial sala-
ries and benefits, service contracts, supplies, utilities, and mainte-
nance and repairs of school facilities. For the purposes of the develop-
ment of a budget for the nineteen hundred ninety-seven--ninety-eight
school year, the board of education shall separate its program, capital
and administrative costs for the nineteen hundred ninety-six--ninety-
seven school year in the manner as if the budget for such year had been
presented in three components. Except as provided in subdivision four of
this section, nothing in this section shall preclude the board, in its
discretion, from submitting additional items of expenditure to the
voters for approval as separate propositions or the voters from submit-
ting propositions pursuant to sections two thousand eight and two thou-
sand thirty-five of this chapter SUBJECT TO THE REQUIREMENTS SET FORTH
IN SUBDIVISION NINE OF SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART.
4. THE BUDGET ADOPTION PROCESS SHALL CONFORM TO THE REQUIREMENTS SET
FORTH IN SECTION TWO THOUSAND TWENTY-THREE-A OF THIS TITLE. In the event
the qualified voters of the district reject the budget proposed pursuant
to subdivision three of this section, the board may propose to the
voters a revised budget pursuant to subdivision three of section two
thousand seven of this title or may adopt a contingency budget pursuant
to subdivision five of this section and subdivision five of section two
thousand twenty-two of this title. The school district budget for any
school year, or any part of such budget or any propositions involving
the expenditure of money for such school year shall not be submitted for
a vote of the qualified voters more than twice. In the event the quali-
fied voters reject the resubmitted budget, the board shall adopt a
contingency budget in accordance with subdivision five of this section
and subdivision five of such section two thousand twenty-two of this
title.
5. If the qualified voters fail or refuse to vote the sum estimated to
be necessary for teachers' salaries and other ordinary contingent
expenses, the board shall adopt a contingency budget in accordance with
this subdivision and shall levy a tax for that portion of such sum
remaining after applying thereto the moneys received or to be received
from state, federal or other sources, in the same manner as if the budg-
et had been approved by the qualified voters; subject to the limitations
imposed in subdivision four of section two thousand twenty-three of this
chapter, SUBDIVISION EIGHT OF SECTION TWO THOUSAND TWENTY-THREE-A OF
THIS TITLE and this subdivision. The administrative component shall not
comprise a greater percentage of the contingency budget exclusive of the
capital component than the lesser of (1) the percentage the administra-
tive component had comprised in the prior year budget exclusive of the
capital component; or (2) the percentage the administrative component
had comprised in the last proposed defeated budget exclusive of the
capital component. Such contingency budget shall include the sum deter-
mined by the board to be necessary for:
(a) teachers' salaries, including the salaries of all members of the
teaching and supervising staff;
(b) items of expense specifically authorized by statute to be incurred
by the board of education, including, but not limited to, expenditures
for transportation to and from regular school programs included as ordi-
nary contingent expenses in subdivision twelve of section twenty-five
S. 5856 18 A. 8518
hundred three of this chapter, expenditures for textbooks, required
services for non-public school students, school health services, special
education services, kindergarten and nursery school programs, and the
district's share of the administrative costs and costs of services
provided by a board of cooperative educational services;
(c) items of expense for legal obligations of the district, including,
but not limited to, contractual obligations, debt service, court orders
or judgments, orders of administrative bodies or officers, and standards
and requirements of the board of regents and the commissioner that have
the force and effect of law;
(d) the purchase of library books and other instructional materials
associated with a library;
(e) items of expense necessary to maintain the educational programs of
the district, preserve the property of the district or protect the
health and safety of students and staff, including, but not limited to,
support services, pupil personnel services, the necessary salaries for
the necessary number of non-teaching employees, necessary legal
expenses, water and utility charges, instructional supplies for teach-
ers' use, emergency repairs, temporary rental of essential classroom
facilities, and expenditures necessary to advise school district voters
concerning school matters; and
(f) expenses incurred for interschool athletics, field trips and other
extracurricular activities; and
(g) any other item of expense determined by the commissioner to be an
ordinary contingent expense in any school district.
6. The commissioner shall determine appeals raising questions as to
what items of expenditure are ordinary contingent expenses pursuant to
subdivision five of this section in accordance with section two thousand
twenty-four and three hundred ten of this chapter.
7. Each year, the board of education shall prepare a school district
report card, pursuant to regulations of the commissioner, and shall make
it publicly available by transmitting it to local newspapers of general
circulation, appending it to copies of the proposed budget made publicly
available as required by law, making it available for distribution at
the annual meeting, and otherwise disseminating it as required by the
commissioner. Such report card shall include measures of the academic
performance of the school district, on a school by school basis, and
measures of the fiscal performance of the district, as prescribed by the
commissioner. Pursuant to regulations of the commissioner, the report
card shall also compare these measures to statewide averages for all
public schools, and statewide averages for public schools of comparable
wealth and need, developed by the commissioner. Such report card shall
include, at a minimum, any information on the school district regarding
pupil performance and expenditure per pupil required to be included in
the annual report by the regents to the governor and the legislature
pursuant to section two hundred fifteen-a of this chapter; and any other
information required by the commissioner. School districts (i) identi-
fied as having fifteen percent or more of their students in special
education, or (ii) which have fifty percent or more of their students
with disabilities in special education programs or services sixty
percent or more of the school day in a general education building, or
(iii) which have eight percent or more of their students with disabili-
ties in special education programs in public or private separate educa-
tional settings shall indicate on their school district report card
their respective percentages as defined in this paragraph and paragraphs
(i) and (ii) of this subdivision as compared to the statewide average.
S. 5856 19 A. 8518
S 10. Paragraph b-1 of subdivision 4 of section 3602 of the education
law, as amended by section 26 of part A of chapter 58 of the laws of
2011, is amended to read as follows:
b-1. Notwithstanding any other provision of law to the contrary, for
the two thousand seven--two thousand eight [through] school year and
thereafter, the additional amount payable to each school district pursu-
ant to this subdivision in the current year as total foundation aid,
after deducting the total foundation aid base, shall be deemed a state
grant in aid identified by the commissioner for general use for purposes
of [sections] SECTION seventeen hundred eighteen [and two thousand twen-
ty-three] of this chapter.
S 11. Paragraph a of subdivision 1 of section 3635 of the education
law, as amended by chapter 69 of the laws of 1992, is amended to read as
follows:
a. Sufficient transportation facilities (including the operation and
maintenance of motor vehicles) shall be provided by the school district
for all the children residing within the school district to and from the
school they legally attend, who are in need of such transportation
because of the remoteness of the school to the child or for the
promotion of the best interest of such children. Such transportation
shall be provided for all children attending grades kindergarten through
eight who live more than two miles from the school which they legally
attend and for all children attending grades nine through twelve who
live more than three miles from the school which they legally attend and
shall be provided for each such child up to a distance of fifteen miles,
the distances in each case being measured by the nearest available route
from home to school. The cost of providing such transportation between
two or three miles, as the case may be, and fifteen miles shall be
considered for the purposes of this chapter to be a charge upon the
district and an ordinary contingent expense of the district. Transporta-
tion for a lesser distance than two miles in the case of children
attending grades kindergarten through eight or three miles in the case
of children attending grades nine through twelve and for a greater
distance than fifteen miles may be provided by the district WITH THE
APPROVAL OF THE QUALIFIED VOTERS, and, if provided, shall be offered
equally to all children in like circumstances residing in the district;
provided, however, that this requirement shall not apply to transporta-
tion offered pursuant to section thirty-six hundred thirty-five-b of
this article.
S 12. Nothing contained in this act shall impair or invalidate the
powers or duties, as authorized by law, of a control board, interim
finance authority or fiscal stability authority including such powers or
duties that may require the tax levy limit, as that term is defined in
section one or section two of this act, to be exceeded.
S 13. This act shall take effect immediately; provided, however, that
sections two through eleven of this act shall take effect July 1, 2011
and shall first apply to school district budgets and the budget adoption
process for the 2012-13 school year; and shall continue to apply to
school district budgets and the budget adoption process for any school
year beginning in any calendar year during which this act is in effect;
provided further, that if section 26 of part A of chapter 58 of the laws
of 2011 shall not have taken effect on or before such date then section
ten of this act shall take effect on the same date and in the same
manner as such chapter of the laws of 2011, takes effect; provided
further, that section one of this act shall first apply to the levy of
taxes by local governments for the fiscal year that begins in 2012 and
S. 5856 20 A. 8518
shall continue to apply to the levy of taxes by local governments for
any fiscal year beginning in any calendar year during which this act is
in effect; provided, further, that this act shall remain in full force
and effect at a minimum until and including June 15, 2016 and shall
remain in effect thereafter only so long as the public emergency requir-
ing the regulation and control of residential rents and evictions and
all such laws providing for such regulation and control continue as
provided in subdivision 3 of section 1 of the local emergency rent
control act, sections 26-501, 26-502 and 26-520 of the administrative
code of the city of New York, section 17 of chapter 576 of the laws of
1974 and subdivision 2 of section 1 of chapter 274 of the laws of 1946
constituting the emergency housing rent control law, and section 10 of
chapter 555 of the laws of 1982, amending the general business law and
the administrative code of the city of New York relating to conversions
of residential property to cooperative or condominium ownership in the
city of New York as such laws are continued by chapter 93 of the laws of
2011 and as such sections are amended from time to time.
PART B
Section 1. Short title. This act shall be known and may be cited as
the "rent act of 2011."
S 1-a. Section 17 of chapter 576 of the laws of 1974 amending the
emergency housing rent control law relating to the control of and
stabilization of rent in certain cases, as amended by chapter 93 of the
laws of 2011, is amended to read as follows:
S 17. Effective date. This act shall take effect immediately and
shall remain in full force and effect until and including the [twenty-
third] FIFTEENTH day of June [2011] 2015; except that sections two and
three shall take effect with respect to any city having a population of
one million or more and section one shall take effect with respect to
any other city, or any town or village whenever the local legislative
body of a city, town or village determines the existence of a public
emergency pursuant to section three of the emergency tenant protection
act of nineteen seventy-four, as enacted by section four of this act,
and provided that the housing accommodations subject on the effective
date of this act to stabilization pursuant to the New York city rent
stabilization law of nineteen hundred sixty-nine shall remain subject to
such law upon the expiration of this act.
S 2. Subdivision 2 of section 1 of chapter 274 of the laws of 1946
constituting the emergency housing rent control law, as amended by chap-
ter 93 of the laws of 2011, is amended to read as follows:
2. The provisions of this act, and all regulations, orders and
requirements thereunder shall remain in full force and effect until and
including June [23, 2011] 15, 2015.
S 3. Section 2 of chapter 329 of the laws of 1963 amending the emer-
gency housing rent control law relating to recontrol of rents in Albany,
as amended by chapter 93 of the laws of 2011, is amended to read as
follows:
S 2. This act shall take effect immediately and the provisions of
subdivision 6 of section 12 of the emergency housing rent control law,
as added by this act, shall remain in full force and effect until and
including June [23, 2011] 15, 2015.
S 4. Section 10 of chapter 555 of the laws of 1982 amending the gener-
al business law and the administrative code of the city of New York
relating to conversion of residential property to cooperative or condo-
S. 5856 21 A. 8518
minium ownership in the city of New York, as amended by chapter 93 of
the laws of 2011, is amended to read as follows:
S 10. This act shall take effect immediately; provided, that the
provisions of sections one, two and nine of this act shall remain in
full force and effect only until and including June [23, 2011] 15, 2015;
provided further that the provisions of section three of this act shall
remain in full force and effect only so long as the public emergency
requiring the regulation and control of residential rents and evictions
continues as provided in subdivision 3 of section 1 of the local emer-
gency housing rent control act; provided further that the provisions of
sections four, five, six and seven of this act shall expire in accord-
ance with the provisions of section 26-520 of the administrative code of
the city of New York as such section of the administrative code is, from
time to time, amended; provided further that the provisions of section
26-511 of the administrative code of the city of New York, as amended by
this act, which the New York City Department of Housing Preservation and
Development must find are contained in the code of the real estate
industry stabilization association of such city in order to approve it,
shall be deemed contained therein as of the effective date of this act;
and provided further that any plan accepted for filing by the department
of law on or before the effective date of this act shall continue to be
governed by the provisions of section 352-eeee of the general business
law as they had existed immediately prior to the effective date of this
act.
S 5. Section 4 of chapter 402 of the laws of 1983 amending the general
business law relating to conversion of rental residential property to
cooperative or condominium ownership in certain municipalities in the
counties of Nassau, Westchester and Rockland, as amended by chapter 93
of the laws of 2011, is amended to read as follows:
S 4. This act shall take effect immediately; provided, that the
provisions of sections one and three of this act shall remain in full
force and effect only until and including June [23, 2011] 15, 2015; and
provided further that any plan accepted for filing by the department of
law on or before the effective date of this act shall continue to be
governed by the provisions of section 352-eee of the general business
law as they had existed immediately prior to the effective date of this
act.
S 6. Subdivision 6 of section 46 of chapter 116 of the laws of 1997
constituting the rent regulation reform act of 1997, as amended by chap-
ter 93 of the laws of 2011, is amended to read as follows:
6. sections twenty-eight, twenty-eight-a, twenty-eight-b and twenty-
eight-c of this act shall expire and be deemed repealed after June [23,
2011] 15, 2015;
S 7. Paragraph 5-a of subdivision c of section 26-511 of the adminis-
trative code of the city of New York, as added by chapter 116 of the
laws of 1997, is amended to read as follows:
(5-a) provides that, notwithstanding any provision of this chapter,
the legal regulated rent for any vacancy lease entered into after the
effective date of this paragraph shall be as hereinafter provided in
this paragraph. The previous legal regulated rent for such housing
accommodation shall be increased by the following: (i) if the vacancy
lease is for a term of two years, twenty percent of the previous legal
regulated rent; or (ii) if the vacancy lease is for a term of one year
the increase shall be twenty percent of the previous legal regulated
rent less an amount equal to the difference between (a) the two year
renewal lease guideline promulgated by the guidelines board of the city
S. 5856 22 A. 8518
of New York applied to the previous legal regulated rent and (b) the one
year renewal lease guideline promulgated by the guidelines board of the
city of New York applied to the previous legal regulated rent. In addi-
tion, if the legal regulated rent was not increased with respect to such
housing accommodation by a permanent vacancy allowance within eight
years prior to a vacancy lease executed on or after the effective date
of this paragraph, the legal regulated rent may be further increased by
an amount equal to the product resulting from multiplying such previous
legal regulated rent by six-tenths of one percent and further multiply-
ing the amount of rent increase resulting therefrom by the greater of
(A) the number of years since the imposition of the last permanent
vacancy allowance, or (B) if the rent was not increased by a permanent
vacancy allowance since the housing accommodation became subject to this
chapter, the number of years that such housing accommodation has been
subject to this chapter. Provided that if the previous legal regulated
rent was less than three hundred dollars the total increase shall be as
calculated above plus one hundred dollars per month. Provided, further,
that if the previous legal regulated rent was at least three hundred
dollars and no more than five hundred dollars in no event shall the
total increase pursuant to this paragraph be less than one hundred
dollars per month. Such increase shall be in lieu of any allowance
authorized for the one or two year renewal component thereof, but shall
be in addition to any other increases authorized pursuant to this chap-
ter including an adjustment based upon a major capital improvement, or a
substantial modification or increase of dwelling space or services, or
installation of new equipment or improvements or new furniture or
furnishings provided in or to the housing accommodation pursuant to this
section. THE INCREASE AUTHORIZED IN THIS PARAGRAPH MAY NOT BE IMPLE-
MENTED MORE THAN ONE TIME IN ANY CALENDAR YEAR, NOTWITHSTANDING THE
NUMBER OF VACANCY LEASES ENTERED INTO IN SUCH YEAR.
S 8. Subdivision (a-1) of section 10 of section 4 of chapter 576 of
the laws of 1974, constituting the emergency tenant protection act of
nineteen seventy-four, as added by chapter 116 of the laws of 1997, is
amended to read as follows:
(a-1) provides that, notwithstanding any provision of this act, the
legal regulated rent for any vacancy lease entered into after the effec-
tive date of this subdivision shall be as hereinafter set forth. The
previous legal regulated rent for such housing accommodation shall be
increased by the following: (i) if the vacancy lease is for a term of
two years, twenty percent of the previous legal regulated rent; or (ii)
if the vacancy lease is for a term of one year the increase shall be
twenty percent of the previous legal regulated rent less an amount equal
to the difference between (a) the two year renewal lease guideline
promulgated by the guidelines board of the county in which the housing
accommodation is located applied to the previous legal regulated rent
and (b) the one year renewal lease guideline promulgated by the guide-
lines board of the county in which the housing accommodation is located
applied to the previous legal regulated rent. In addition, if the legal
regulated rent was not increased with respect to such housing accommo-
dation by a permanent vacancy allowance within eight years prior to a
vacancy lease executed on or after the effective date of this subdivi-
sion, the legal regulated rent may be further increased by an amount
equal to the product resulting from multiplying such previous legal
regulated rent by six-tenths of one percent and further multiplying the
amount of rent increase resulting therefrom by the greater of (A) the
number of years since the imposition of the last permanent vacancy
S. 5856 23 A. 8518
allowance, or (B) if the rent was not increased by a permanent vacancy
allowance since the housing accommodation became subject to this act,
the number of years that such housing accommodation has been subject to
this act. Provided that if the previous legal regulated rent was less
than three hundred dollars the total increase shall be as calculated
above plus one hundred dollars per month. Provided, further, that if the
previous legal regulated rent was at least three hundred dollars and no
more than five hundred dollars in no event shall the total increase
pursuant to this subdivision be less than one hundred dollars per month.
Such increase shall be in lieu of any allowance authorized for the one
or two year renewal component thereof, but shall be in addition to any
other increases authorized pursuant to this act including an adjustment
based upon a major capital improvement, or a substantial modification or
increase of dwelling space or services, or installation of new equipment
or improvements or new furniture or furnishings provided in or to the
housing accommodation pursuant to section six of this act. THE INCREASE
AUTHORIZED IN THIS SUBDIVISION MAY NOT BE IMPLEMENTED MORE THAN ONE TIME
IN ANY CALENDAR YEAR, NOTWITHSTANDING THE NUMBER OF VACANCY LEASES
ENTERED INTO IN SUCH YEAR.
S 9. Paragraph (n) of subdivision 2 of section 2 of chapter 274 of the
laws of 1946, constituting the emergency housing rent control law, as
amended by chapter 82 of the laws of 2003, is amended to read as
follows:
(n) any housing accommodation with a maximum rent of two thousand
dollars or more per month at any time between the effective date of this
paragraph and October first, nineteen hundred ninety-three which is or
becomes vacant on or after the effective date of this paragraph[,]; or,
FOR any housing accommodation with a maximum rent of two thousand
dollars or more per month at any time on or after the effective date of
the rent regulation reform act of 1997 AND BEFORE THE EFFECTIVE DATE OF
THE RENT ACT OF 2011, which is or becomes vacant on or after the effec-
tive date of the rent regulation reform act of 1997 AND BEFORE THE
EFFECTIVE DATE OF THE RENT ACT OF 2011. THIS EXCLUSION SHALL APPLY
REGARDLESS OF WHETHER THE NEXT TENANT IN OCCUPANCY OR ANY SUBSEQUENT
TENANT IN OCCUPANCY IS CHARGED OR PAYS LESS THAN TWO THOUSAND DOLLARS A
MONTH; OR, FOR ANY HOUSING ACCOMMODATION WITH A MAXIMUM RENT OF TWO
THOUSAND FIVE HUNDRED DOLLARS OR MORE PER MONTH AT ANY TIME ON OR AFTER
THE EFFECTIVE DATE OF THE RENT ACT OF 2011, WHICH IS OR BECOMES VACANT
ON OR AFTER SUCH EFFECTIVE DATE. This exclusion shall apply regardless
of whether the next tenant in occupancy or any subsequent tenant in
occupancy actually is charged or pays less than two thousand FIVE
HUNDRED dollars a month. [This] AN exclusion PURSUANT TO THIS PARAGRAPH
shall not apply, however, to or become effective with respect to housing
accommodations which the commissioner determines or finds that the land-
lord or any person acting on his or her behalf, with intent to cause the
tenant to vacate, has engaged in any course of conduct (including, but
not limited to, interruption or discontinuance of required services)
which interfered with or disturbed or was intended to interfere with or
disturb the comfort, repose, peace or quiet of the tenant in his or her
use or occupancy of the housing accommodations and in connection with
such course of conduct, any other general enforcement provision of this
law shall also apply.
S 10. Paragraph 13 of subdivision a of section 5 of section 4 of chap-
ter 576 of the laws of 1974, constituting the emergency tenant
protection act of nineteen seventy-four, as amended by chapter 82 of the
laws of 2003, is amended to read as follows:
S. 5856 24 A. 8518
(13) any housing accommodation with a legal regulated rent of two
thousand dollars or more per month at any time between the effective
date of this paragraph and October first, nineteen hundred ninety-three
which is or becomes vacant on or after the effective date of this para-
graph[,]; or, FOR any housing accommodation with a legal regulated rent
of two thousand dollars or more per month at any time on or after the
effective date of the rent regulation reform act of 1997 AND BEFORE THE
EFFECTIVE DATE OF THE RENT ACT OF 2011, which is or becomes vacant on or
after the effective date of the rent regulation reform act of 1997 AND
BEFORE THE EFFECTIVE DATE OF THE RENT ACT OF 2011. THIS EXCLUSION SHALL
APPLY REGARDLESS OF WHETHER THE NEXT TENANT IN OCCUPANCY OR ANY SUBSE-
QUENT TENANT IN OCCUPANCY IS CHARGED OR PAYS LESS THAN TWO THOUSAND
DOLLARS A MONTH; OR, FOR ANY HOUSING ACCOMMODATION WITH A LEGAL REGU-
LATED RENT OF TWO THOUSAND FIVE HUNDRED DOLLARS OR MORE PER MONTH AT ANY
TIME ON OR AFTER THE EFFECTIVE DATE OF THE RENT ACT OF 2011, WHICH IS OR
BECOMES VACANT ON OR AFTER SUCH EFFECTIVE DATE. [This] AN exclusion
PURSUANT TO THIS PARAGRAPH shall apply regardless of whether the next
tenant in occupancy or any subsequent tenant in occupancy actually is
charged or pays less than two thousand FIVE HUNDRED dollars a month.
Provided however, that [this] AN exclusion PURSUANT TO THIS PARAGRAPH
shall not apply to housing accommodations which became or become subject
to this act (a) by virtue of receiving tax benefits pursuant to section
four hundred twenty-one-a or four hundred eighty-nine of the real prop-
erty tax law, except as otherwise provided in subparagraph (i) of para-
graph (f) of subdivision two of section four hundred twenty-one-a of the
real property tax law, or (b) by virtue of article seven-C of the multi-
ple dwelling law. This paragraph shall not apply, however, to or become
effective with respect to housing accommodations which the commissioner
determines or finds that the landlord or any person acting on his or her
behalf, with intent to cause the tenant to vacate, has engaged in any
course of conduct (including, but not limited to, interruption or
discontinuance of required services) which interfered with or disturbed
or was intended to interfere with or disturb the comfort, repose, peace
or quiet of the tenant in his or her use or occupancy of the housing
accommodations and in connection with such course of conduct, any other
general enforcement provision of this act shall also apply.
S 11. Subparagraph (k) of paragraph 2 of subdivision e of section
26-403 of the administrative code of the city of New York, as amended by
chapter 82 of the laws of 2003, is amended to read as follows:
(k) Any housing accommodation which becomes vacant on or after April
first, nineteen hundred ninety-seven AND BEFORE THE EFFECTIVE DATE OF
THE RENT ACT OF 2011, and where at the time the tenant vacated such
housing accommodation the maximum rent was two thousand dollars or more
per month; or, FOR any housing accommodation which is or becomes vacant
on or after the effective date of the rent regulation reform act of 1997
AND BEFORE THE EFFECTIVE DATE OF THE RENT ACT OF 2011 with a maximum
rent of two thousand dollars or more per month. THIS EXCLUSION SHALL
APPLY REGARDLESS OF WHETHER THE NEXT TENANT IN OCCUPANCY OR ANY SUBSE-
QUENT TENANT IN OCCUPANCY IS CHARGED OR PAYS LESS THAN TWO THOUSAND
DOLLARS A MONTH; OR, FOR ANY HOUSING ACCOMMODATION WITH A MAXIMUM RENT
OF TWO THOUSAND FIVE HUNDRED DOLLARS OR MORE PER MONTH AT ANY TIME ON OR
AFTER THE EFFECTIVE DATE OF THE RENT ACT OF 2011, WHICH IS OR BECOMES
VACANT ON OR AFTER SUCH EFFECTIVE DATE. This exclusion shall apply
regardless of whether the next tenant in occupancy or any subsequent
tenant in occupancy actually is charged or pays less than two thousand
FIVE HUNDRED dollars a month. Provided however, that [this] AN exclu-
S. 5856 25 A. 8518
sion PURSUANT TO THIS SUBPARAGRAPH shall not apply to housing accommo-
dations which became or become subject to this law by virtue of receiv-
ing tax benefits pursuant to section four hundred eighty-nine of the
real property tax law. This subparagraph shall not apply, however, to or
become effective with respect to housing accommodations which the
commissioner determines or finds that the landlord or any person acting
on his or her behalf, with intent to cause the tenant to vacate, has
engaged in any course of conduct (including, but not limited to, inter-
ruption or discontinuance of required services) which interfered with or
disturbed or was intended to interfere with or disturb the comfort,
repose, peace or quiet of the tenant in his or her use or occupancy of
the housing accommodations and in connection with such course of
conduct, any other general enforcement provision of this law shall also
apply.
S 12. Section 26-504.2 of the administrative code of the city of New
York, as amended by chapter 116 of the laws of 1997, subdivision a as
amended by chapter 82 of the laws of 2003 and subdivision b as added by
local law number 12 of the city of New York for the year 2000, is
amended to read as follows:
S 26-504.2 Exclusion of high rent accommodations. a. "Housing accommo-
dations" shall not include: any housing accommodation which becomes
vacant on or after April first, nineteen hundred ninety-seven AND BEFORE
THE EFFECTIVE DATE OF THE RENT ACT OF 2011 and where at the time the
tenant vacated such housing accommodation the legal regulated rent was
two thousand dollars or more per month[,]; or, FOR any housing accommo-
dation which is or becomes vacant on or after the effective date of the
rent regulation reform act of 1997 AND BEFORE THE EFFECTIVE DATE OF THE
RENT ACT OF 2011, with a legal regulated rent of two thousand dollars or
more per month. THIS EXCLUSION SHALL APPLY REGARDLESS OF WHETHER THE
NEXT TENANT IN OCCUPANCY OR ANY SUBSEQUENT TENANT IN OCCUPANCY IS
CHARGED OR PAYS LESS THAN TWO THOUSAND DOLLARS A MONTH; OR, FOR ANY
HOUSING ACCOMMODATION WITH A LEGAL REGULATED RENT OF TWO THOUSAND FIVE
HUNDRED DOLLARS OR MORE PER MONTH AT ANY TIME ON OR AFTER THE EFFECTIVE
DATE OF THE RENT ACT OF 2011, WHICH IS OR BECOMES VACANT ON OR AFTER
SUCH EFFECTIVE DATE. This exclusion shall apply regardless of whether
the next tenant in occupancy or any subsequent tenant in occupancy actu-
ally is charged or pays less than two thousand FIVE HUNDRED dollars a
month. Provided however, that [this] AN exclusion PURSUANT TO THIS
SUBDIVISION shall not apply to housing accommodations which became or
become subject to this law (a) by virtue of receiving tax benefits
pursuant to section four hundred twenty-one-a or four hundred eighty-
nine of the real property tax law, except as otherwise provided in
subparagraph (i) of paragraph (f) of subdivision two of section four
hundred twenty-one-a of the real property tax law, or (b) by virtue of
article seven-C of the multiple dwelling law. This section shall not
apply, however, to or become effective with respect to housing accommo-
dations which the commissioner determines or finds that the landlord or
any person acting on his or her behalf, with intent to cause the tenant
to vacate, engaged in any course of conduct (including, but not limited
to, interruption or discontinuance of required services) which interfer-
ed with or disturbed or was intended to interfere with or disturb the
comfort, repose, peace or quiet of the tenant in his or her use or occu-
pancy of the housing accommodations and in connection with such course
of conduct, any other general enforcement provision of this law shall
also apply.
S. 5856 26 A. 8518
b. The owner of any housing accommodation that is not subject to this
law pursuant to the provisions of subdivision a of this section or
subparagraph k of paragraph 2 of subdivision e of section 26-403 of this
code shall give written notice certified by such owner to the first
tenant of that housing accommodation after such housing accommodation
becomes exempt from the provisions of this law or the city rent and
rehabilitation law. Such notice shall contain the last regulated rent,
the reason that such housing accommodation is not subject to this law or
the city rent and rehabilitation law, a calculation of how either the
rental amount charged when there is no lease or the rental amount
provided for in the lease has been derived so as to reach two thousand
dollars or more per month OR, FOR A HOUSING ACCOMMODATION WITH A LEGAL
REGULATED RENT OR MAXIMUM RENT OF TWO THOUSAND FIVE HUNDRED DOLLARS OR
MORE PER MONTH ON OR AFTER THE EFFECTIVE DATE OF THE RENT ACT OF 2011,
WHICH IS OR BECOMES VACANT ON OR AFTER SUCH EFFECTIVE DATE, WHETHER THE
NEXT TENANT IN OCCUPANCY OR ANY SUBSEQUENT TENANT IN OCCUPANCY ACTUALLY
IS CHARGED OR PAYS LESS THAN A LEGAL REGULATED RENT OR MAXIMUM RENT OF
TWO THOUSAND FIVE HUNDRED DOLLARS OR MORE PER MONTH, a statement that
the last legal regulated rent or the maximum rent may be verified by the
tenant by contacting the state division of housing and community
renewal, or any successor thereto, and the address and telephone number
of such agency, or any successor thereto. Such notice shall be sent by
certified mail within thirty days after the tenancy commences or after
the signing of the lease by both parties, whichever occurs first or
shall be delivered to the tenant at the signing of the lease. In addi-
tion, the owner shall send and certify to the tenant a copy of the
registration statement for such housing accommodation filed with the
state division of housing and community renewal indicating that such
housing accommodation became exempt from the provisions of this law or
the city rent and rehabilitation law, which form shall include the last
regulated rent, and shall be sent to the tenant within thirty days after
the tenancy commences or the filing of such registration, whichever
occurs later.
S 13. Subdivision a-2 of section 10 of section 4 of chapter 576 of the
laws of 1974, constituting the emergency tenant protection act of nine-
teen seventy-four, as added by chapter 82 of the laws of 2003, is
amended to read as follows:
[a-2.] (A-2) Provides that where the amount of rent charged to and
paid by the tenant is less than the legal regulated rent for the housing
accommodation, the amount of rent for such housing accommodation which
may be charged upon renewal or upon vacancy thereof may, at the option
of the owner, be based upon such previously established legal regulated
rent, as adjusted by the most recent applicable guidelines increases and
other increases authorized by law. Where, subsequent to vacancy, such
legal regulated rent, as adjusted by the most recent applicable guide-
lines increases and any other increases authorized by law is two thou-
sand dollars or more per month OR, FOR ANY HOUSING ACCOMMODATION WHICH
IS OR BECOMES VACANT ON OR AFTER THE EFFECTIVE DATE OF THE RENT ACT OF
2011, IS TWO THOUSAND FIVE HUNDRED DOLLARS OR MORE PER MONTH, such hous-
ing accommodation shall be excluded from the provisions of this act
pursuant to paragraph thirteen of subdivision a of section five of this
act.
S 14. Paragraph 14 of subdivision c of section 26-511 of the adminis-
trative code of the city of New York, as added by chapter 82 of the laws
of 2003, is amended to read as follows:
S. 5856 27 A. 8518
(14) provides that where the amount of rent charged to and paid by the
tenant is less than the legal regulated rent for the housing accommo-
dation, the amount of rent for such housing accommodation which may be
charged upon renewal or upon vacancy thereof may, at the option of the
owner, be based upon such previously established legal regulated rent,
as adjusted by the most recent applicable guidelines increases and any
other increases authorized by law. Where, subsequent to vacancy, such
legal regulated rent, as adjusted by the most recent applicable guide-
lines increases and any other increases authorized by law is two thou-
sand dollars or more per month OR, FOR ANY HOUSING ACCOMMODATION WHICH
IS OR BECOMES VACANT ON OR AFTER THE EFFECTIVE DATE OF THE RENT ACT OF
2011, IS TWO THOUSAND FIVE HUNDRED DOLLARS OR MORE PER MONTH, such hous-
ing accommodation shall be excluded from the provisions of this law
pursuant to section 26-504.2 of this chapter.
S 15. Subparagraph (e) of paragraph 1 of subdivision g of section
26-405 of the administrative code of the city of New York, as amended by
chapter 253 of the laws of 1993, is amended to read as follows:
(e) The landlord and tenant by mutual voluntary written agreement
agree to a substantial increase or decrease in dwelling space or a
change in the services, furniture, furnishings or equipment provided in
the housing accommodations. An adjustment under this subparagraph shall
be equal to one-fortieth, IN THE CASE OF A BUILDING WITH THIRTY-FIVE OR
FEWER HOUSING ACCOMMODATIONS, OR ONE-SIXTIETH, IN THE CASE OF A BUILDING
WITH MORE THAN THIRTY-FIVE HOUSING ACCOMMODATIONS WHERE SUCH ADJUSTMENT
TAKES EFFECT ON OR AFTER SEPTEMBER TWENTY-FOURTH, TWO THOUSAND ELEVEN,
of the total cost incurred by the landlord in providing such modifica-
tion or increase in dwelling space, services, furniture, furnishings or
equipment, including the cost of installation, but excluding finance
charges, provided further [than] THAT an owner who is entitled to a rent
increase pursuant to this subparagraph shall not be entitled to a
further rent increase based upon the installation of similar equipment,
or new furniture or furnishings within the useful life of such new
equipment, or new furniture or furnishings. The owner shall give written
notice to the city rent agency of any such adjustment pursuant to this
subparagraph[.]; or
S 16. Paragraph 13 of subdivision c of section 26-511 of the adminis-
trative code of the city of New York, as added by chapter 253 of the
laws of 1993, is amended to read as follows:
(13) provides that an owner is entitled to a rent increase where there
has been a substantial modification or increase of dwelling space or an
increase in the services, or installation of new equipment or improve-
ments or new furniture or furnishings provided in or to a tenant's hous-
ing accommodation, on written tenant consent to the rent increase. In
the case of a vacant housing accommodation, tenant consent shall not be
required. The permanent increase in the legal regulated rent for the
affected housing accommodation shall be one-fortieth, IN THE CASE OF A
BUILDING WITH THIRTY-FIVE OR FEWER HOUSING ACCOMMODATIONS, OR ONE-SIXTI-
ETH, IN THE CASE OF A BUILDING WITH MORE THAN THIRTY-FIVE HOUSING ACCOM-
MODATIONS WHERE SUCH PERMANENT INCREASE TAKES EFFECT ON OR AFTER SEPTEM-
BER TWENTY-FOURTH, TWO THOUSAND ELEVEN, of the total cost incurred by
the landlord in providing such modification or increase in dwelling
space, services, furniture, furnishings or equipment, including the cost
of installation, but excluding finance charges. Provided further that an
owner who is entitled to a rent increase pursuant to this paragraph
shall not be entitled to a further rent increase based upon the instal-
S. 5856 28 A. 8518
lation of similar equipment, or new furniture or furnishings within the
useful life of such new equipment, or new furniture or furnishings.
S 17. Intentionally omitted.
S 18. Paragraph 1 of subdivision d of section 6 of section 4 of chap-
ter 576 of the laws of 1974, constituting the emergency tenant
protection act of nineteen seventy-four, as added by chapter 253 of the
laws of 1993, is amended to read as follows:
(1) there has been a substantial modification or increase of dwelling
space or an increase in the services, or installation of new equipment
or improvements or new furniture or furnishings, provided in or to a
tenant's housing accommodation, on written tenant consent to the rent
increase. In the case of a vacant housing accommodation, tenant consent
shall not be required. The permanent increase in the legal regulated
rent for the affected housing accommodation shall be one-fortieth, IN
THE CASE OF A BUILDING WITH THIRTY-FIVE OR FEWER HOUSING ACCOMMODATIONS,
OR ONE-SIXTIETH, IN THE CASE OF A BUILDING WITH MORE THAN THIRTY-FIVE
HOUSING ACCOMMODATIONS WHERE SUCH PERMANENT INCREASE TAKES EFFECT ON OR
AFTER SEPTEMBER TWENTY-FOURTH, TWO THOUSAND ELEVEN, of the total cost
incurred by the landlord in providing such modification or increase in
dwelling space, services, furniture, furnishings or equipment, including
the cost of installation, but excluding finance charges. Provided
further [than] THAT an owner who is entitled to a rent increase pursuant
to this paragraph shall not be entitled to a further rent increase based
upon the installation of similar equipment, or new furniture or
furnishings within the useful life of such new equipment, or new furni-
ture or furnishings.
S 19. Intentionally omitted.
S 20. Intentionally omitted.
S 21. Intentionally omitted.
S 22. Intentionally omitted.
S 23. Intentionally omitted.
S 24. Intentionally omitted.
S 25. The second undesignated paragraph of paragraph (a) of subdivi-
sion 4 of section 4 of chapter 274 of the laws of 1946, constituting the
emergency housing rent control law, as amended by chapter 21 of the laws
of 1962, clause 5 as amended by chapter 253 of the laws of 1993, is
amended to read as follows:
No application for adjustment of maximum rent based upon a sales price
valuation shall be filed by the landlord under this subparagraph prior
to six months from the date of such sale of the property. In addition,
no adjustment ordered by the commission based upon such sales price
valuation shall be effective prior to one year from the date of such
sale. Where, however, the assessed valuation of the land exceeds four
times the assessed valuation of the buildings thereon, the commission
may determine a valuation of the property equal to five times the equal-
ized assessed valuation of the buildings, for the purposes of this
subparagraph. The commission may make a determination that the valu-
ation of the property is an amount different from such equalized
assessed valuation where there is a request for a reduction in such
assessed valuation currently pending; or where there has been a
reduction in the assessed valuation for the year next preceding the
effective date of the current assessed valuation in effect at the time
of the filing of the application. Net annual return shall be the amount
by which the earned income exceeds the operating expenses of the proper-
ty, excluding mortgage interest and amortization, and excluding allow-
ances for obsolescence and reserves, but including an allowance for
S. 5856 29 A. 8518
depreciation of two per centum of the value of the buildings exclusive
of the land, or the amount shown for depreciation of the buildings in
the latest required federal income tax return, whichever is lower;
provided, however, that (1) no allowance for depreciation of the build-
ings shall be included where the buildings have been fully depreciated
for federal income tax purposes or on the books of the owner; or (2) the
landlord who owns no more than four rental units within the state has
not been fully compensated by increases in rental income sufficient to
offset unavoidable increases in property taxes, fuel, utilities, insur-
ance and repairs and maintenance, excluding mortgage interest and amor-
tization, and excluding allowances for depreciation, obsolescence and
reserves, which have occurred since the federal date determining the
maximum rent or the date the property was acquired by the present owner,
whichever is later; or (3) the landlord operates a hotel or rooming
house or owns a cooperative apartment and has not been fully compensated
by increases in rental income from the controlled housing accommodations
sufficient to offset unavoidable increases in property taxes and other
costs as are allocable to such controlled housing accommodations,
including costs of operation of such hotel or rooming house, but exclud-
ing mortgage interest and amortization, and excluding allowances for
depreciation, obsolescence and reserves, which have occurred since the
federal date determining the maximum rent or the date the landlord
commenced the operation of the property, whichever is later; or (4) the
landlord and tenant voluntarily enter into a valid written lease in good
faith with respect to any housing accommodation, which lease provides
for an increase in the maximum rent not in excess of fifteen per centum
and for a term of not less than two years, except that where such lease
provides for an increase in excess of fifteen per centum, the increase
shall be automatically reduced to fifteen per centum; or (5) the land-
lord and tenant by mutual voluntary written agreement agree to a
substantial increase or decrease in dwelling space or a change in the
services, furniture, furnishings or equipment provided in the housing
accommodations; provided that an owner shall be entitled to a rent
increase where there has been a substantial modification or increase of
dwelling space or an increase in the services, or installation of new
equipment or improvements or new furniture or furnishings provided in or
to a tenant's housing accommodation. The permanent increase in the maxi-
mum rent for the affected housing accommodation shall be one-fortieth,
IN THE CASE OF A BUILDING WITH THIRTY-FIVE OR FEWER HOUSING ACCOMMO-
DATIONS, OR ONE-SIXTIETH, IN THE CASE OF A BUILDING WITH MORE THAN THIR-
TY-FIVE HOUSING ACCOMMODATIONS WHERE SUCH PERMANENT INCREASE TAKES
EFFECT ON OR AFTER SEPTEMBER TWENTY-FOURTH, TWO THOUSAND ELEVEN, of the
total cost incurred by the landlord in providing such modification or
increase in dwelling space, services, furniture, furnishings or equip-
ment, including the cost of installation, but excluding finance charges
provided further that an owner who is entitled to a rent increase pursu-
ant to this clause shall not be entitled to a further rent increase
based upon the installation of similar equipment, or new furniture or
furnishings within the useful life of such new equipment, or new furni-
ture or furnishings. The owner shall give written notice to the commis-
sion of any such adjustment pursuant to this clause; or (6) there has
been, since March first, nineteen hundred fifty, an increase in the
rental value of the housing accommodations as a result of a substantial
rehabilitation of the building or housing accommodation therein which
materially adds to the value of the property or appreciably prolongs its
life, excluding ordinary repairs, maintenance and replacements; or (7)
S. 5856 30 A. 8518
there has been since March first, nineteen hundred fifty, a major capi-
tal improvement required for the operation, preservation or maintenance
of the structure; or (8) there has been since March first, nineteen
hundred fifty, in structures containing more than four housing accommo-
dations, other improvements made with the express consent of the tenants
in occupancy of at least seventy-five per centum of the housing accom-
modations, provided, however, that no adjustment granted hereunder shall
exceed fifteen per centum unless the tenants have agreed to a higher
percentage of increase, as herein provided; or (9) there has been,
since March first, nineteen hundred fifty, a subletting without written
consent from the landlord or an increase in the number of adult occu-
pants who are not members of the immediate family of the tenant, and the
landlord has not been compensated therefor by adjustment of the maximum
rent by lease or order of the commission or pursuant to the federal act;
or (10) the presence of unique or peculiar circumstances materially
affecting the maximum rent has resulted in a maximum rent which is
substantially lower than the rents generally prevailing in the same area
for substantially similar housing accommodations.
S 26. Intentionally omitted.
S 27. Intentionally omitted.
S 28. Intentionally omitted.
S 29. Paragraph 12 of subdivision a of section 5 of section 4 of chap-
ter 576 of the laws of 1974, constituting the emergency tenant
protection act of nineteen seventy-four, as amended by chapter 116 of
the laws of 1997, is amended to read as follows:
(12) upon issuance of an order by the division, housing accommodations
which are: (1) occupied by persons who have a total annual income [in
excess of one hundred seventy-five thousand dollars per annum in each of
the two preceding calendar years, as defined in and subject to the limi-
tations and process set forth in section five-a of this act] AS DEFINED
IN AND SUBJECT TO THE LIMITATIONS AND PROCESS SET FORTH IN SECTION
FIVE-A OF THIS ACT IN EXCESS OF THE DEREGULATION INCOME THRESHOLD, AS
DEFINED IN SECTION FIVE-A OF THIS ACT, IN EACH OF THE TWO PRECEDING
CALENDAR YEARS; and (2) have a legal regulated rent [of two thousand
dollars or more per month] THAT EQUALS OR EXCEEDS THE DEREGULATION RENT
THRESHOLD, AS DEFINED IN SECTION FIVE-A OF THIS ACT. Provided however,
that this exclusion shall not apply to housing accommodations which
became or become subject to this act (a) by virtue of receiving tax
benefits pursuant to section four hundred twenty-one-a or four hundred
eighty-nine of the real property tax law, except as otherwise provided
in subparagraph (i) of paragraph (f) of subdivision two of section four
hundred twenty-one-a of the real property tax law, or (b) by virtue of
article seven-C of the multiple dwelling law.
S 30. Section 5-a of section 4 of chapter 576 of the laws of 1974,
constituting the emergency tenant protection act of nineteen seventy-
four, as added by chapter 253 of the laws of 1993, subdivision (b) and
paragraphs 1 and 2 of subdivision (c) as amended and subdivision (e) as
added by chapter 116 of the laws of 1997, is amended to read as follows:
S 5-a. High income rent [decontrol] DEREGULATION. (a) 1. For purposes
of this section, annual income shall mean the federal adjusted gross
income as reported on the New York state income tax return. Total annual
income means the sum of the annual incomes of all persons whose names
are recited as the tenant or co-tenant on a lease who occupy the housing
accommodation and all other persons that occupy the housing accommo-
dation as their primary residence on other than a temporary basis,
excluding bona fide employees of such occupants residing therein in
S. 5856 31 A. 8518
connection with such employment and excluding bona fide subtenants in
occupancy pursuant to the provisions of section two hundred twenty-six-b
of the real property law. In the case where a housing accommodation is
sublet, the annual income of the tenant or co-tenant recited on the
lease who will reoccupy the housing accommodation upon the expiration of
the sublease shall be considered.
2. DEREGULATION INCOME THRESHOLD MEANS TOTAL ANNUAL INCOME EQUAL TO
ONE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS IN EACH OF THE TWO PRECEDING
CALENDAR YEARS FOR PROCEEDINGS COMMENCED BEFORE JULY FIRST, TWO THOUSAND
ELEVEN. FOR PROCEEDINGS COMMENCED ON OR AFTER JULY FIRST, TWO THOUSAND
ELEVEN, THE DEREGULATION INCOME THRESHOLD MEANS THE TOTAL ANNUAL INCOME
EQUAL TO TWO HUNDRED THOUSAND DOLLARS IN EACH OF THE TWO PRECEDING
CALENDAR YEARS.
3. DEREGULATION RENT THRESHOLD MEANS TWO THOUSAND DOLLARS FOR
PROCEEDINGS COMMENCED BEFORE JULY FIRST, TWO THOUSAND ELEVEN. FOR
PROCEEDINGS COMMENCED ON OR AFTER JULY FIRST, TWO THOUSAND ELEVEN, THE
DEREGULATION RENT THRESHOLD MEANS TWO THOUSAND FIVE HUNDRED DOLLARS.
(b) On or before the first day of May in each calendar year, the owner
of each housing accommodation for which the legal regulated MONTHLY rent
[is two thousand dollars or more per month] EQUALS OR EXCEEDS THE DEREG-
ULATION RENT THRESHOLD may provide the tenant or tenants residing there-
in with an income certification form prepared by the division of housing
and community renewal on which such tenant or tenants shall identify all
persons referred to in subdivision (a) of this section and shall certify
whether the total annual income is in excess of [one hundred seventy-
five thousand dollars in each of the two preceding calendar years] THE
DEREGULATION INCOME THRESHOLD IN EACH OF THE TWO PRECEDING CALENDAR
YEARS. Such income certification form shall state that the income level
certified to by the tenant may be subject to verification by the depart-
ment of taxation and finance pursuant to section one hundred seventy-
one-b of the tax law, and shall not require disclosure of any informa-
tion other than whether the aforementioned threshold has been exceeded.
Such income certification form shall clearly state that: (i) only
tenants residing in housing accommodations which had a legal regulated
MONTHLY rent [of two thousand dollars or more per month] THAT EQUALS OR
EXCEEDS THE DEREGULATION RENT THRESHOLD are required to complete the
certification form; (ii) that tenants have protections available to them
which are designed to prevent harassment; (iii) that tenants are not
required to provide any information regarding their income except that
which is requested on the form and may contain such other information
the division deems appropriate. The tenant or tenants shall return the
completed certification to the owner within thirty days after service
upon the tenant or tenants. In the event that the total annual income as
certified is in excess of [one hundred seventy-five thousand dollars in
each such year] THE DEREGULATION INCOME THRESHOLD IN EACH OF THE TWO
PRECEDING CALENDAR YEARS, the owner may file the certification with the
state division of housing and community renewal on or before June thir-
tieth of such year. Upon filing such certification with the division,
the division shall, within thirty days after the filing, issue an order
providing that such housing accommodation shall not be subject to the
provisions of this act upon the expiration of the existing lease. A copy
of such order shall be mailed by regular and certified mail, return
receipt requested, to the tenant or tenants and a copy thereof shall be
mailed to the owner.
(c) 1. In the event that the tenant or tenants either fail to return
the completed certification to the owner on or before the date required
S. 5856 32 A. 8518
by subdivision (b) of this section or the owner disputes the certif-
ication returned by the tenant or tenants, the owner may, on or before
June thirtieth of such year, petition the state division of housing and
community renewal to verify, pursuant to section one hundred seventy-
one-b of the tax law, whether the total annual income exceeds [one
hundred seventy-five thousand dollars in each of the two preceding
calendar years] THE DEREGULATION INCOME THRESHOLD IN EACH OF THE TWO
PRECEDING CALENDAR YEARS. Within twenty days after the filing of such
request with the division, the division shall notify the tenant or
tenants that such tenant or tenants named on the lease must provide the
division with such information as the division and the department of
taxation and finance shall require to verify whether the total annual
income exceeds [one hundred seventy-five thousand dollars in each such
year] THE DEREGULATION INCOME THRESHOLD IN EACH OF THE TWO PRECEDING
CALENDAR YEARS. The division's notification shall require the tenant or
tenants to provide the information to the division within sixty days of
service upon such tenant or tenants and shall include a warning in bold
faced type that failure to respond will result in an order being issued
by the division providing that such housing accommodations shall not be
subject to the provisions of this act.
2. If the department of taxation and finance determines that the total
annual income is in excess of [one hundred seventy-five thousand dollars
in each of the two preceding calendar years] THE DEREGULATION INCOME
THRESHOLD IN EACH OF THE TWO PRECEDING CALENDAR YEARS, the division
shall, on or before November fifteenth of such year, notify the owner
and tenants of the results of such verification. Both the owner and the
tenants shall have thirty days within which to comment on such verifica-
tion results. Within forty-five days after the expiration of the
comment period, the division shall, where appropriate, issue an order
providing that such housing accommodation shall not be subject to the
provisions of this act upon expiration of the existing lease. A copy of
such order shall be mailed by regular and certified mail, return receipt
requested, to the tenant or tenants and a copy thereof shall be sent to
the owner.
3. In the event the tenant or tenants fail to provide the information
required pursuant to paragraph one of this subdivision, the division
shall issue, on or before December first of such year, an order provid-
ing that such housing accommodation shall not be subject to the
provisions of this act upon the expiration [or] OF the current lease. A
copy of such order shall be mailed by regular and certified mail, return
receipt requested, to the tenant or tenants and a copy thereof shall be
sent to the owner.
4. The provisions of the state freedom of information act shall not
apply to any income information obtained by the division pursuant to
this section.
(d) This section shall apply only to paragraph twelve of subdivision a
of section five of this act.
(e) Upon receipt of such order of [decontrol] DEREGULATION pursuant to
this section, an owner shall offer the housing accommodation subject to
such order to the tenant at a rent not in excess of the market rent,
which for the purposes of this section means a rent obtainable in an
arm's length transaction. Such rental offer shall be made by the owner
in writing to the tenant by certified and regular mail and shall inform
the tenant that such offer must be accepted in writing within ten days
of receipt. The tenant shall respond within ten days after receipt of
such offer. If the tenant declines the offer or fails to respond within
S. 5856 33 A. 8518
such period, the owner may commence an action or proceeding for the
eviction of such tenant.
S 31. Paragraph (m) of subdivision 2 of section 2 of chapter 274 of
the laws of 1946, constituting the emergency housing rent control law,
as amended by chapter 116 of the laws of 1997, is amended to read as
follows:
(m) upon the issuance of an order of [decontrol] DEREGULATION by the
division, housing accommodations which: (1) are occupied by persons who
have a total annual income, AS DEFINED IN AND SUBJECT TO THE LIMITATIONS
AND PROCESS SET FORTH IN SECTION TWO-A OF THIS LAW, in excess of [one
hundred seventy-five thousand dollars in each of the two preceding
calendar years, as defined in and subject to the limitations and process
set forth in section two-a of this law] THE DEREGULATION INCOME THRESH-
OLD AS DEFINED IN SECTION TWO-A OF THIS LAW IN EACH OF THE TWO PRECEDING
CALENDAR YEARS; and (2) have a maximum rent [of two thousand dollars or
more per month] THAT EQUALS OR EXCEEDS THE DEREGULATION RENT THRESHOLD
AS DEFINED IN SECTION TWO-A OF THIS LAW.
S 32. Section 2-a of chapter 274 of the laws of 1946, constituting the
emergency housing rent control law, as added by chapter 253 of the laws
of 1993, subdivision (b) and paragraphs 1 and 2 of subdivision (c) as
amended and subdivision (e) as added by chapter 116 of the laws of 1997,
is amended to read as follows:
S 2-a. (a) 1. For purposes of this section, annual income shall mean
the federal adjusted gross income as reported on the New York state
income tax return. Total annual income means the sum of the annual
incomes of all persons who occupy the housing accommodation as their
primary residence on other than a temporary basis, excluding bona fide
employees of such occupants residing therein in connection with such
employment and excluding bona fide subtenants in occupancy pursuant to
the provisions of section two hundred twenty-six-b of the real property
law. In the case where a housing accommodation is sublet, the annual
income of the sublessor shall be considered.
2. DEREGULATION INCOME THRESHOLD MEANS TOTAL ANNUAL INCOME EQUAL TO
ONE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS IN EACH OF THE TWO PRECEDING
CALENDAR YEARS FOR PROCEEDINGS COMMENCED BEFORE JULY FIRST, TWO THOUSAND
ELEVEN. FOR PROCEEDINGS COMMENCED ON OR AFTER JULY FIRST, TWO THOUSAND
ELEVEN, THE DEREGULATION INCOME THRESHOLD MEANS THE TOTAL ANNUAL INCOME
EQUAL TO TWO HUNDRED THOUSAND DOLLARS IN EACH OF THE TWO PRECEDING
CALENDAR YEARS.
3. DEREGULATION RENT THRESHOLD MEANS TWO THOUSAND DOLLARS FOR
PROCEEDINGS COMMENCED PRIOR TO JULY FIRST, TWO THOUSAND ELEVEN. FOR
PROCEEDINGS COMMENCED ON OR AFTER JULY FIRST, TWO THOUSAND ELEVEN, THE
DEREGULATION RENT THRESHOLD MEANS TWO THOUSAND FIVE HUNDRED DOLLARS.
(b) On or before the first day of May in each calendar year, the owner
of each housing accommodation for which the maximum MONTHLY rent [is two
thousand dollars or more per month] EQUALS OR EXCEEDS THE DEREGULATION
RENT THRESHOLD may provide the tenant or tenants residing therein with
an income certification form prepared by the division of housing and
community renewal on which such tenant or tenants shall identify all
persons referred to in subdivision (a) of this section and shall certify
whether the total annual income is in excess of [one hundred seventy-
five thousand dollars in each of the two preceding calendar years] THE
DEREGULATION INCOME THRESHOLD IN EACH OF THE TWO PRECEDING CALENDAR
YEARS. Such income certification form shall state that the income level
certified to by the tenant may be subject to verification by the depart-
ment of taxation and finance pursuant to section one hundred seventy-
S. 5856 34 A. 8518
one-b of the tax law and shall not require disclosure of any income
information other than whether the aforementioned threshold has been
exceeded. Such income certification form shall clearly state that: (i)
only tenants residing in housing accommodations which had a maximum
MONTHLY rent EQUAL TO OR IN EXCESS of [two thousand dollars or more per
month] THE DEREGULATION RENT THRESHOLD are required to complete the
certification form; (ii) that tenants have protections available to them
which are designed to prevent harassment; (iii) that tenants are not
required to provide any information regarding their income except that
which is requested on the form and may contain such other information
the division deems appropriate. The tenant or tenants shall return the
completed certification to the owner within thirty days after service
upon the tenant or tenants. In the event that the total annual income as
certified is in excess of [one hundred seventy-five thousand dollars in
each such year] THE DEREGULATION INCOME THRESHOLD IN EACH OF THE TWO
PRECEDING CALENDAR YEARS, the owner may file the certification with the
state division of housing and community renewal on or before June thir-
tieth of such year. Upon filing such certification with the division,
the division shall, within thirty days after the filing, issue an order
of [decontrol] DEREGULATION providing that such housing accommodations
shall not be subject to the provisions of this law as of the first day
of June in the year next succeeding the filing of the certification by
the owner. A copy of such order shall be mailed by regular and certified
mail, return receipt requested, to the tenant or tenants and a copy
thereof shall be mailed to the owner.
(c) 1. In the event that the tenant or tenants either fail to return
the completed certification to the owner on or before the date required
by subdivision (b) of this section or the owner disputes the certif-
ication returned by the tenant or tenants, the owner may, on or before
June thirtieth of such year, petition the state division of housing and
community renewal to verify, pursuant to section one hundred seventy-
one-b of the tax law, whether the total annual income exceeds [one
hundred seventy-five thousand dollars in each of the two preceding
calendar years] THE DEREGULATION INCOME THRESHOLD IN EACH OF THE TWO
PRECEDING CALENDAR YEARS. Within twenty days after the filing of such
request with the division, the division shall notify the tenant or
tenants that such tenant or tenants must provide the division with such
information as the division and the department of taxation and finance
shall require to verify whether the total annual income exceeds [one
hundred seventy-five thousand dollars in each such year] THE DEREGU-
LATION INCOME THRESHOLD IN EACH OF THE TWO PRECEDING CALENDAR YEARS.
The division's notification shall require the tenant or tenants to
provide the information to the division within sixty days of service
upon such tenant or tenants and shall include a warning in bold faced
type that failure to respond will result in an order of [decontrol]
DEREGULATION being issued by the division for such housing accommo-
dation.
2. If the department of taxation and finance determines that the total
annual income is in excess of [one hundred seventy-five thousand dollars
in each of the two preceding calendar years] THE DEREGULATION INCOME
THRESHOLD IN EACH OF THE TWO PRECEDING CALENDAR YEARS, the division
shall, on or before November fifteenth of such year, notify the owner
and tenants of the results of such verification. Both the owner and the
tenants shall have thirty days within which to comment on such verifica-
tion results. Within forty-five days after the expiration of the
comment period, the division shall, where appropriate, issue an order of
S. 5856 35 A. 8518
[decontrol] DEREGULATION providing that such housing accommodation shall
not be subject to the provisions of this law as of the first day of
March in the year next succeeding the filing of the owner's petition
with the division. A copy of such order shall be mailed by regular and
certified mail, return receipt requested, to the tenant or tenants and a
copy thereof shall be sent to the owner.
3. In the event the tenant or tenants fail to provide the information
required pursuant to paragraph one of this subdivision, the division
shall issue, on or before December first of such year, an order of
[decontrol] DEREGULATION providing that such housing accommodation shall
not be subject to the provisions of this law as of the first day of
March in the year next succeeding the last day on which the tenant or
tenants were required to provide the information required by such para-
graph. A copy of such order shall be mailed by regular and certified
mail, return receipt requested, to the tenant or tenants and a copy
thereof shall be sent to the owner.
4. The provisions of the state freedom of information act shall not
apply to any income information obtained by the division pursuant to
this section.
(d) This section shall apply only to paragraph (m) of subdivision two
of section two of this law.
(e) Upon receipt of such order of [decontrol] DEREGULATION pursuant to
this section, an owner shall offer the housing accommodation subject to
such order to the tenant at a rent not in excess of the market rent,
which for the purposes of this section means a rent obtainable in an
arm's length transaction. Such rental offer shall be made by the owner
in writing to the tenant by certified and regular mail and shall inform
the tenant that such offer must be accepted in writing within ten days
of receipt. The tenant shall respond within ten days after receipt of
such offer. If the tenant declines the offer or fails to respond within
such period, the owner may commence an action or proceeding for the
eviction of such tenant.
S 33. Subparagraph (j) of paragraph 2 of subdivision e of section
26-403 of the administrative code of the city of New York, as amended by
chapter 116 of the laws of 1997, is amended to read as follows:
(j) Upon the issuance of an order of [decontrol] DEREGULATION by the
division, housing accommodations which: (1) are occupied by persons who
have a total annual income, AS DEFINED IN AND SUBJECT TO THE LIMITATIONS
AND PROCESS SET FORTH IN SECTION 26-403.1 OF THIS CHAPTER, in excess of
[one hundred seventy-five thousand dollars per annum] THE DEREGULATION
INCOME THRESHOLD, AS DEFINED IN SECTION 26-403.1 OF THIS CHAPTER, in
each of the two preceding calendar years[, as defined in and subject to
the limitations and process set forth in section 26-403.1 of this chap-
ter]; and (2) have a maximum rent [of two thousand dollars or more per
month] THAT EQUALS OR EXCEEDS THE DEREGULATION RENT THRESHOLD, AS
DEFINED IN SECTION 26-403.1 OF THIS CHAPTER. Provided however, that
this exclusion shall not apply to housing accommodations which became or
become subject to this law by virtue of receiving tax benefits pursuant
to section four hundred eighty-nine of the real property tax law.
S 34. Section 26-403.1 of the administrative code of the city of New
York, as added by chapter 253 of the laws of 1993, subdivision (b) and
paragraphs 1 and 2 of subdivision (c) as amended and subdivision (e) as
added by chapter 116 of the laws of 1997, is amended to read as follows:
S 26-403.1 High income rent [decontrol] DEREGULATION. (a) 1. For
purposes of this section, annual income shall mean the federal adjusted
gross income as reported on the New York state income tax return. Total
S. 5856 36 A. 8518
annual income means the sum of the annual incomes of all persons who
occupy the housing accommodation as their primary residence other than
on a temporary basis, excluding bona fide employees of such occupants
residing therein in connection with such employment and excluding bona
fide subtenants in occupancy pursuant to the provisions of section two
hundred twenty-six-b of the real property law. In the case where a hous-
ing accommodation is sublet, the annual income of the sublessor shall be
considered.
2. DEREGULATION INCOME THRESHOLD MEANS TOTAL ANNUAL INCOME EQUAL TO
ONE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS IN EACH OF THE TWO PRECEDING
CALENDAR YEARS FOR PROCEEDINGS COMMENCED PRIOR TO JULY FIRST, TWO THOU-
SAND ELEVEN. FOR PROCEEDINGS COMMENCED ON OR AFTER JULY FIRST, TWO
THOUSAND ELEVEN, THE DEREGULATION INCOME THRESHOLD MEANS THE TOTAL ANNU-
AL INCOME EQUAL TO TWO HUNDRED THOUSAND DOLLARS IN EACH OF THE TWO
PRECEDING CALENDAR YEARS.
3. DEREGULATION RENT THRESHOLD MEANS TWO THOUSAND DOLLARS FOR
PROCEEDINGS COMMENCED BEFORE JULY FIRST, TWO THOUSAND ELEVEN. FOR
PROCEEDINGS COMMENCED ON OR AFTER JULY FIRST, TWO THOUSAND ELEVEN, THE
DEREGULATION RENT THRESHOLD MEANS TWO THOUSAND FIVE HUNDRED DOLLARS.
(b) On or before the first day of May in each calendar year, the owner
of each housing accommodation for which the maximum rent [is two thou-
sand dollars or more per month] EQUALS OR EXCEEDS THE DEREGULATION RENT
THRESHOLD may provide the tenant or tenants residing therein with an
income certification form prepared by the division of housing and commu-
nity renewal on which such tenant or tenants shall identify all persons
referred to in subdivision (a) of this section and shall certify whether
the total annual income is in excess of [one hundred seventy-five thou-
sand dollars in each of the two preceding calendar years] THE DEREGU-
LATION INCOME THRESHOLD IN EACH OF THE TWO PRECEDING CALENDAR YEARS.
Such income certification form shall state that the income level certi-
fied to by the tenant may be subject to verification by the department
of taxation and finance pursuant to section one hundred seventy-one-b of
the tax law and shall not require disclosure of any income information
other than whether the aforementioned threshold has been exceeded. Such
income certification form shall clearly state that: (i) only tenants
residing in housing accommodations which have a maximum MONTHLY rent [of
two thousand dollars or more per month] THAT EQUALS OR EXCEEDS THE
DEREGULATION RENT THRESHOLD are required to complete the certification
form; (ii) that tenants have protections available to them which are
designed to prevent harassment; (iii) that tenants are not required to
provide any information regarding their income except that which is
requested on the form and may contain such other information the divi-
sion deems appropriate. The tenant or tenants shall return the completed
certification to the owner within thirty days after service upon the
tenant or tenants. In the event that the total annual income as certi-
fied is in excess of [one hundred seventy-five thousand dollars in each
such year] THE DEREGULATION INCOME THRESHOLD IN EACH OF THE TWO PRECED-
ING CALENDAR YEARS, the owner may file the certification with the state
division of housing and community renewal on or before June thirtieth of
such year. Upon filing such certification with the division, the divi-
sion shall, within thirty days after the filing, issue an order of
[decontrol] DEREGULATION providing that such housing accommodations
shall not be subject to the provisions of this law as of the first day
of June in the year next succeeding the filing of the certification by
the owner. A copy of such order shall be mailed by regular and certified
S. 5856 37 A. 8518
mail, return receipt requested, to the tenant or tenants and a copy
thereof shall be mailed to the owner.
(c) 1. In the event that the tenant or tenants either fail to return
the completed certification to the owner on or before the date required
by subdivision (b) of this section or the owner disputes the certif-
ication returned by the tenant or tenants, the owner may, on or before
June thirtieth of such year, petition the state division of housing and
community renewal to verify, pursuant to section one hundred seventy-
one-b of the tax law, whether the total annual income exceeds [one
hundred seventy-five thousand dollars in each of the two preceding
calendar years] THE DEREGULATION INCOME THRESHOLD IN EACH OF THE TWO
PRECEDING CALENDAR YEARS. Within twenty days after the filing of such
request with the division, the division shall notify the tenant or
tenants that such tenant or tenants must provide the division with such
information as the division and the department of taxation and finance
shall require to verify whether the total annual income exceeds [one
hundred seventy-five thousand dollars in each such year] THE DEREGU-
LATION INCOME THRESHOLD IN EACH OF THE TWO PRECEDING CALENDAR YEARS.
The division's notification shall require the tenant or tenants to
provide the information to the division within sixty days of service
upon such tenant or tenants and shall include a warning in bold faced
type that failure to respond will result in an order of [decontrol]
DEREGULATION being issued by the division for such housing accommo-
dation.
2. If the department of taxation and finance determines that the total
annual income is in excess of [one hundred seventy-five thousand dollars
in each of the two preceding calendar years] THE DEREGULATION INCOME
THRESHOLD IN EACH OF THE TWO PRECEDING CALENDAR YEARS, the division
shall, on or before November fifteenth of such year, notify the owner
and tenants of the results of such verification. Both the owner and the
tenants shall have thirty days within which to comment on such verifica-
tion results. Within forty-five days after the expiration of the
comment period, the division shall, where appropriate, issue an order of
[decontrol] DEREGULATION providing that such housing accommodation shall
not be subject to the provisions of this law as of the first day of
March in the year next succeeding the filing of the owner's petition
with the division. A copy of such order shall be mailed by regular and
certified mail, return receipt requested, to the tenant or tenants and a
copy thereof shall be sent to the owner.
3. In the event the tenant or tenants fail to provide the information
required pursuant to paragraph one of this subdivision, the division
shall issue, on or before December first of such year, an order of
[decontrol] DEREGULATION providing that such housing accommodation shall
not be subject to the provisions of this law as of the first day of
March in the year next succeeding the last day on which the tenant or
tenants were required to provide the information required by such para-
graph. A copy of such order shall be mailed by regular and certified
mail, return receipt requested, to the tenant or tenants and a copy
thereof shall be sent to the owner.
4. The provisions of the state freedom of information act shall not
apply to any income information obtained by the division pursuant to
this section.
(d) This section shall apply only to subparagraph (j) of paragraph two
of subdivision e of section 26-403 of this [code] CHAPTER.
(e) Upon receipt of such order of [decontrol] DEREGULATION pursuant to
this section, an owner shall offer the housing accommodation subject to
S. 5856 38 A. 8518
such order to the tenant at a rent not in excess of the market rent,
which for the purposes of this section means a rent obtainable in an
arm's length transaction. Such rental offer shall be made by the owner
in writing to the tenant by certified and regular mail and shall inform
the tenant that such offer must be accepted in writing within ten days
of receipt. The tenant shall respond within ten days after receipt of
such offer. If the tenant declines the offer or fails to respond within
such period, the owner may commence an action or proceeding for the
eviction of such tenant.
S 35. Section 26-504.1 of the administrative code of the city of New
York, as amended by chapter 116 of the laws of 1997, is amended to read
as follows:
S 26-504.1 Exclusion of accommodations of high income renters. Upon
the issuance of an order by the division, "housing accommodations" shall
not include housing accommodations which: (1) are occupied by persons
who have a total annual income, AS DEFINED IN AND SUBJECT TO THE LIMITA-
TIONS AND PROCESS SET FORTH IN SECTION 26-504.3 OF THIS CHAPTER, in
excess of [one hundred seventy-five thousand dollars per annum] THE
DEREGULATION INCOME THRESHOLD, AS DEFINED IN SECTION 26-504.3 OF THIS
CHAPTER, for each of the two preceding calendar years[, as defined in
and subject to the limitations and process set forth in section 26-504.3
of this chapter]; and (2) have a legal regulated MONTHLY rent [of two
thousand dollars or more per month] THAT EQUALS OR EXCEEDS THE DEREGU-
LATION RENT THRESHOLD, AS DEFINED IN SECTION 26-504.3 OF THIS CHAPTER.
Provided, however, that this exclusion shall not apply to housing accom-
modations which became or become subject to this law (a) by virtue of
receiving tax benefits pursuant to section four hundred twenty-one-a or
four hundred eighty-nine of the real property tax law, except as other-
wise provided in subparagraph (i) of paragraph (f) of subdivision two of
section four hundred twenty-one-a of the real property tax law, or (b)
by virtue of article seven-C of the multiple dwelling law.
S 36. Section 26-504.3 of the administrative code of the city of New
York, as added by chapter 253 of the laws of 1993, subdivision (b) and
paragraphs 1 and 2 of subdivision (c) as amended and subdivision (e) as
added by chapter 116 of the laws of 1997, is amended to read as follows:
S 26-504.3 High income rent [decontrol] DEREGULATION. (a) 1. For
purposes of this section, annual income shall mean the federal adjusted
gross income as reported on the New York state income tax return. Total
annual income means the sum of the annual incomes of all persons whose
names are recited as the tenant or co-tenant on a lease who occupy the
housing accommodation and all other persons that occupy the housing
accommodation as their primary residence on other than a temporary
basis, excluding bona fide employees of such occupants residing therein
in connection with such employment and excluding bona fide subtenants in
occupancy pursuant to the provisions of section two hundred twenty-six-b
of the real property law. In the case where a housing accommodation is
sublet, the annual income of the tenant or co-tenant recited on the
lease who will reoccupy the housing accommodation upon the expiration of
the sublease shall be considered.
2. DEREGULATION INCOME THRESHOLD MEANS TOTAL ANNUAL INCOME EQUAL TO
ONE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS IN EACH OF THE TWO PRECEDING
CALENDAR YEARS FOR PROCEEDINGS COMMENCED BEFORE JULY FIRST, TWO THOUSAND
ELEVEN. FOR PROCEEDINGS COMMENCED ON OR AFTER JULY FIRST, TWO THOUSAND
ELEVEN, THE DEREGULATION INCOME THRESHOLD MEANS THE TOTAL ANNUAL INCOME
EQUAL TO TWO HUNDRED THOUSAND DOLLARS IN EACH OF THE TWO PRECEDING
CALENDAR YEARS.
S. 5856 39 A. 8518
3. DEREGULATION RENT THRESHOLD MEANS TWO THOUSAND DOLLARS FOR
PROCEEDINGS COMMENCED BEFORE JULY FIRST, TWO THOUSAND ELEVEN. FOR
PROCEEDINGS COMMENCED ON OR AFTER JULY FIRST, TWO THOUSAND ELEVEN, THE
DEREGULATION RENT THRESHOLD MEANS TWO THOUSAND FIVE HUNDRED DOLLARS.
(b) On or before the first day of May in each calendar year, the owner
of each housing accommodation for which the legal regulated rent [is two
thousand dollars or more per month] EQUALS OR EXCEEDS THE DEREGULATION
RENT THRESHOLD may provide the tenant or tenants residing therein with
an income certification form prepared by the division of housing and
community renewal on which such tenant or tenants shall identify all
persons referred to in subdivision (a) of this section and shall certify
whether the total annual income is in excess of [one hundred seventy-
five thousand dollars in each of the two preceding calendar years] THE
DEREGULATION INCOME THRESHOLD IN EACH OF THE TWO PRECEDING CALENDAR
YEARS. Such income certification form shall state that the income level
certified to by the tenant may be subject to verification by the depart-
ment of taxation and finance pursuant to section one hundred seventy-
one-b of the tax law and shall not require disclosure of any income
information other than whether the aforementioned threshold has been
exceeded. Such income certification form shall clearly state that: (i)
only tenants residing in housing accommodations which have a legal regu-
lated MONTHLY rent [of two thousand dollars or more per month], THAT
EQUALS OR EXCEEDS THE DEREGULATION RENT THRESHOLD are required to
complete the certification form; (ii) that tenants have protections
available to them which are designed to prevent harassment; (iii) that
tenants are not required to provide any information regarding their
income except that which is requested on the form and may contain such
other information the division deems appropriate. The tenant or tenants
shall return the completed certification to the owner within thirty days
after service upon the tenant or tenants. In the event that the total
annual income as certified is in excess of [one hundred seventy-five
thousand dollars in each such year] THE DEREGULATION INCOME THRESHOLD IN
EACH OF THE TWO PRECEDING CALENDAR YEARS, the owner may file the certif-
ication with the state division of housing and community renewal on or
before June thirtieth of such year. Upon filing such certification with
the division, the division shall, within thirty days after the filing,
issue an order providing that such housing accommodation shall not be
subject to the provisions of this act upon the expiration of the exist-
ing lease. A copy of such order shall be mailed by regular and certified
mail, return receipt requested, to the tenant or tenants and a copy
thereof shall be mailed to the owner.
(c) 1. In the event that the tenant or tenants either fail to return
the completed certification to the owner on or before the date required
by subdivision (b) of this section or the owner disputes the certif-
ication returned by the tenant or tenants, the owner may, on or before
June thirtieth of such year, petition the state division of housing and
community renewal to verify, pursuant to section one hundred seventy-
one-b of the tax law, whether the total annual income exceeds [one
hundred seventy-five thousand dollars in each of the two preceding
calendar years] THE DEREGULATION INCOME THRESHOLD IN EACH OF THE TWO
PRECEDING CALENDAR YEARS. Within twenty days after the filing of such
request with the division, the division shall notify the tenant or
tenants named on the lease that such tenant or tenants must provide the
division with such information as the division and the department of
taxation and finance shall require to verify whether the total annual
income exceeds [one hundred seventy-five thousand dollars in each such
S. 5856 40 A. 8518
year] THE DEREGULATION INCOME THRESHOLD IN EACH OF THE TWO PRECEDING
CALENDAR YEARS. The division's notification shall require the tenant or
tenants to provide the information to the division within sixty days of
service upon such tenant or tenants and shall include a warning in bold
faced type that failure to respond will result in an order being issued
by the division providing that such housing accommodation shall not be
subject to the provisions of this law.
2. If the department of taxation and finance determines that the total
annual income is in excess of [one hundred seventy-five thousand dollars
in each of the two preceding calendar years] THE DEREGULATION INCOME
THRESHOLD IN EACH OF THE TWO PRECEDING CALENDAR YEARS, the division
shall, on or before November fifteenth of such year, notify the owner
and tenants of the results of such verification. Both the owner and the
tenants shall have thirty days within which to comment on such verifica-
tion results. Within forty-five days after the expiration of the
comment period, the division shall, where appropriate, issue an order
providing that such housing accommodation shall not be subject to the
provisions of this law upon the expiration of the existing lease. A copy
of such order shall be mailed by regular and certified mail, return
receipt requested, to the tenant or tenants and a copy thereof shall be
sent to the owner.
3. In the event the tenant or tenants fail to provide the information
required pursuant to paragraph one of this subdivision, the division
shall issue, on or before December first of such year, an order provid-
ing that such housing accommodation shall not be subject to the
provisions of this law upon the expiration of the current lease. A copy
of such order shall be mailed by regular and certified mail, return
receipt requested, to the tenant or tenants and a copy thereof shall be
sent to the owner.
4. The provisions of the state freedom of information act shall not
apply to any income information obtained by the division pursuant to
this section.
(d) This section shall apply only to section 26-504.1 of this [code]
CHAPTER.
(e) Upon receipt of such order of [decontrol] DEREGULATION pursuant to
this section, an owner shall offer the housing accommodation subject to
such order to the tenant at a rent not in excess of the market rent,
which for the purposes of this section means a rent obtainable in an
arm's length transaction. Such rental offer shall be made by the owner
in writing to the tenant by certified and regular mail and shall inform
the tenant that such offer must be accepted in writing within ten days
of receipt. The tenant shall respond within ten days after receipt of
such offer. If the tenant declines the offer or fails to respond within
such period, the owner may commence an action or proceeding for the
eviction of such tenant.
S 37. Paragraph (b) of subdivision 3 of section 171-b of the tax law,
as amended by chapter 116 of the laws of 1997, is amended to read as
follows:
(b) The department, when requested by the division of housing and
community renewal, shall verify the total annual income of all persons
residing in housing accommodations as their primary residence subject to
rent regulation and shall notify the commissioner of the division of
housing and community renewal as may be appropriate whether the total
annual income exceeds [one hundred seventy-five thousand dollars per
annum in each of the two preceding calendar years] THE APPLICABLE DEREG-
ULATION INCOME THRESHOLD IN EACH OF THE TWO PRECEDING CALENDAR YEARS.
S. 5856 41 A. 8518
No other information regarding the annual income of such persons shall
be provided.
S 38. Subparagraph (i) of paragraph (a) of subdivision 2 of section
421-a of the real property tax law, as amended by chapter 288 of the
laws of 1985, is amended to read as follows:
(i) Within a city having a population of one million or more, new
multiple dwellings, except hotels, shall be exempt from taxation for
local purposes, other than assessments for local improvements, for the
tax year or years immediately following taxable status dates occurring
subsequent to the commencement and prior to the completion of
construction, but not to exceed three such tax years, EXCEPT FOR NEW
MULTIPLE DWELLINGS THE CONSTRUCTION OF WHICH COMMENCED BETWEEN JANUARY
FIRST, TWO THOUSAND SEVEN, AND JUNE THIRTIETH, TWO THOUSAND NINE, SHALL
HAVE AN ADDITIONAL THIRTY-SIX MONTHS TO COMPLETE CONSTRUCTION AND SHALL
BE ELIGIBLE FOR FULL EXEMPTION FROM TAXATION FOR THE FIRST THREE YEARS
OF THE PERIOD OF CONSTRUCTION; ANY ELIGIBLE PROJECT THAT SEEKS TO
UTILIZE THE SIX-YEAR PERIOD OF CONSTRUCTION AUTHORIZED BY THIS SECTION
MUST APPLY FOR A PRELIMINARY CERTIFICATE OF ELIGIBILITY WITHIN ONE YEAR
OF THE EFFECTIVE DATE OF THE RENT ACT OF 2011, PROVIDED, HOWEVER THAT
SUCH MULTIPLE DWELLINGS SHALL BE ELIGIBLE FOR A MAXIMUM OF THREE YEARS
OF BENEFITS DURING THE CONSTRUCTION PERIOD, and shall continue to be
exempt from such taxation in tax years immediately following the taxable
status date first occurring after the expiration of the exemption herein
conferred during construction so long as used at the completion of
construction for dwelling purposes for a period not to exceed ten years
in the aggregate after the taxable status date immediately following the
completion thereof, as follows:
(A) except as otherwise provided herein there shall be full exemption
from taxation during the period of construction or the period of three
years immediately following commencement of construction, whichever
expires sooner, EXCEPT FOR NEW MULTIPLE DWELLINGS THE CONSTRUCTION OF
WHICH COMMENCED BETWEEN JANUARY FIRST, TWO THOUSAND SEVEN, AND JUNE
THIRTIETH, TWO THOUSAND NINE, SHALL HAVE AN ADDITIONAL THIRTY-SIX MONTHS
TO COMPLETE CONSTRUCTION AND SHALL BE ELIGIBLE FOR FULL EXEMPTION FROM
TAXATION FOR THE FIRST THREE YEARS OF THE PERIOD OF CONSTRUCTION; ANY
ELIGIBLE PROJECT THAT SEEKS TO UTILIZE THE SIX-YEAR PERIOD OF
CONSTRUCTION AUTHORIZED BY THIS SECTION MUST APPLY FOR A PRELIMINARY
CERTIFICATE OF ELIGIBILITY WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THE
RENT ACT OF 2011, PROVIDED, HOWEVER THAT SUCH MULTIPLE DWELLINGS SHALL
BE ELIGIBLE FOR A MAXIMUM OF THREE YEARS OF BENEFITS DURING THE
CONSTRUCTION PERIOD, and for two years following such period;
(B) followed by two years of exemption from eighty per cent of such
taxation;
(C) followed by two years of exemption from sixty per cent of such
taxation;
(D) followed by two years of exemption from forty per cent of such
taxation;
(E) followed by two years of exemption from twenty per cent of such
taxation;
The following table shall illustrate the computation of the tax
exemption:
CONSTRUCTION OF CERTAIN MULTIPLE DWELLINGS
Exemption
During Construction (maximum three years); 100%
S. 5856 42 A. 8518
EXCEPT CONSTRUCTION COMMENCED BETWEEN JANUARY
FIRST, TWO THOUSAND SEVEN AND JUNE
THIRTIETH, TWO THOUSAND NINE (MAXIMUM
THREE YEARS)
Following completion of work
Year:
1 100%
2 100
3 80
4 80
5 60
6 60
7 40
8 40
9 20
10 20
S 39. Clause (A) of subparagraph (ii) of paragraph (a) of subdivision
2 of section 421-a of the real property tax law, as amended by chapter
288 of the laws of 1985, is amended to read as follows:
(A) Within a city having a population of one million or more the local
housing agency may adopt rules and regulations providing that except in
areas excluded by local law new multiple dwellings, except hotels, shall
be exempt from taxation for local purposes, other than assessments for
local improvements, for the tax year or years immediately following
taxable status dates occurring subsequent to the commencement and prior
to the completion of construction, but not to exceed three such tax
years, EXCEPT FOR NEW MULTIPLE DWELLINGS THE CONSTRUCTION OF WHICH
COMMENCED BETWEEN JANUARY FIRST, TWO THOUSAND SEVEN, AND JUNE THIRTIETH,
TWO THOUSAND NINE, SHALL HAVE AN ADDITIONAL THIRTY-SIX MONTHS TO
COMPLETE CONSTRUCTION AND SHALL BE ELIGIBLE FOR FULL EXEMPTION FROM
TAXATION FOR THE FIRST THREE YEARS OF THE PERIOD OF CONSTRUCTION; ANY
ELIGIBLE PROJECT THAT SEEKS TO UTILIZE THE SIX-YEAR PERIOD OF
CONSTRUCTION AUTHORIZED BY THIS SECTION MUST APPLY FOR A PRELIMINARY
CERTIFICATE OF ELIGIBILITY WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THE
RENT ACT OF 2011, PROVIDED, HOWEVER THAT SUCH MULTIPLE DWELLINGS SHALL
BE ELIGIBLE FOR A MAXIMUM OF THREE YEARS OF BENEFITS DURING THE
CONSTRUCTION PERIOD, and shall continue to be exempt from such taxation
in tax years immediately following the taxable status date first occur-
ring after the expiration of the exemption herein conferred during such
construction so long as used at the completion of construction for
dwelling purposes for a period not to exceed fifteen years in the aggre-
gate, as follows:
a. except as otherwise provided herein there shall be full exemption
from taxation during the period of construction or the period of three
years immediately following commencement of construction, whichever
expires sooner, EXCEPT FOR NEW MULTIPLE DWELLINGS THE CONSTRUCTION OF
WHICH COMMENCED BETWEEN JANUARY FIRST, TWO THOUSAND SEVEN, AND JUNE
THIRTIETH, TWO THOUSAND NINE, SHALL HAVE AN ADDITIONAL THIRTY-SIX MONTHS
TO COMPLETE CONSTRUCTION AND SHALL BE ELIGIBLE FOR FULL EXEMPTION FROM
TAXATION FOR THE FIRST THREE YEARS OF THE PERIOD OF CONSTRUCTION; ANY
ELIGIBLE PROJECT THAT SEEKS TO UTILIZE THE SIX-YEAR PERIOD OF
CONSTRUCTION AUTHORIZED BY THIS SECTION MUST APPLY FOR A PRELIMINARY
CERTIFICATE OF ELIGIBILITY WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THE
RENT ACT OF 2011, PROVIDED, HOWEVER THAT SUCH MULTIPLE DWELLINGS SHALL
S. 5856 43 A. 8518
BE ELIGIBLE FOR A MAXIMUM OF THREE YEARS OF BENEFITS DURING THE
CONSTRUCTION PERIOD, and for eleven years following such period;
b. followed by one year of exemption from eighty percent of such taxa-
tion;
c. followed by one year of exemption from sixty percent of such taxa-
tion;
d. followed by one year of exemption from forty percent of such taxa-
tion;
e. followed by one year of exemption from twenty percent of such taxa-
tion.
S 40. Clause (A) of subparagraph (iii) of paragraph (a) of subdivision
2 of section 421-a of the real property tax law, as amended by chapter
702 of the laws of 1992, is amended to read as follows:
(A) Within a city having a population of one million or more the local
housing agency may adopt rules and regulations providing that new multi-
ple dwellings, except hotels, shall be exempt from taxation for local
purposes, other than assessments for local improvements, for the tax
year or years immediately following taxable status dates occurring
subsequent to the commencement and prior to the completion of
construction, but not to exceed three such tax years, EXCEPT FOR NEW
MULTIPLE DWELLINGS THE CONSTRUCTION OF WHICH COMMENCED BETWEEN JANUARY
FIRST, TWO THOUSAND SEVEN, AND JUNE THIRTIETH, TWO THOUSAND NINE, SHALL
HAVE AN ADDITIONAL THIRTY-SIX MONTHS TO COMPLETE CONSTRUCTION AND SHALL
BE ELIGIBLE FOR FULL EXEMPTION FROM TAXATION FOR THE FIRST THREE YEARS
OF THE PERIOD OF CONSTRUCTION; ANY ELIGIBLE PROJECT THAT SEEKS TO
UTILIZE THE SIX-YEAR PERIOD OF CONSTRUCTION AUTHORIZED BY THIS SECTION
MUST APPLY FOR A PRELIMINARY CERTIFICATE OF ELIGIBILITY WITHIN ONE YEAR
OF THE EFFECTIVE DATE OF THE RENT ACT OF 2011, PROVIDED, HOWEVER THAT
SUCH MULTIPLE DWELLINGS SHALL BE ELIGIBLE FOR A MAXIMUM OF THREE YEARS
OF BENEFITS DURING THE CONSTRUCTION PERIOD, and shall continue to be
exempt from such taxation in tax years immediately following the taxable
status date first occurring after the expiration of the exemption herein
conferred during such construction so long as used at the completion of
construction for dwelling purposes for a period not to exceed twenty-
five years in the aggregate, provided that the area in which the project
is situated is a neighborhood preservation program area as determined by
the local housing agency as of June first, nineteen hundred eighty-five,
or is a neighborhood preservation area as determined by the New York
city planning commission as of June first, nineteen hundred eighty-five,
or is an area that was eligible for mortgage insurance provided by the
rehabilitation mortgage insurance corporation as of May first, nineteen
hundred ninety-two or is an area receiving funding for a neighborhood
preservation project pursuant to the neighborhood reinvestment corpo-
ration act (42 U.S.C. SS180 et seq.) as of June first, nineteen hundred
eighty-five, as follows:
a. except as otherwise provided herein there shall be full exemption
from taxation during the period of construction or the period of three
years immediately following commencement of construction, whichever
expires sooner, EXCEPT FOR NEW MULTIPLE DWELLINGS THE CONSTRUCTION OF
WHICH COMMENCED BETWEEN JANUARY FIRST, TWO THOUSAND SEVEN, AND JUNE
THIRTIETH, TWO THOUSAND NINE, SHALL HAVE AN ADDITIONAL THIRTY-SIX MONTHS
TO COMPLETE CONSTRUCTION AND SHALL BE ELIGIBLE FOR FULL EXEMPTION FROM
TAXATION FOR THE FIRST THREE YEARS OF THE PERIOD OF CONSTRUCTION; ANY
ELIGIBLE PROJECT THAT SEEKS TO UTILIZE THE SIX-YEAR PERIOD OF
CONSTRUCTION AUTHORIZED BY THIS SECTION MUST APPLY FOR A PRELIMINARY
CERTIFICATE OF ELIGIBILITY WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THE
S. 5856 44 A. 8518
RENT ACT OF 2011, PROVIDED, HOWEVER THAT SUCH MULTIPLE DWELLINGS SHALL
BE ELIGIBLE FOR A MAXIMUM OF THREE YEARS OF BENEFITS DURING THE
CONSTRUCTION PERIOD, and for twenty-one years following such period;
b. followed by one year of exemption from eighty percent of such taxa-
tion;
c. followed by one year of exemption from sixty percent of such taxa-
tion;
d. followed by one year of exemption from forty percent of such taxa-
tion;
e. followed by one year of exemption from twenty percent of such taxa-
tion.
S 41. The opening paragraph of clause (A) of subparagraph (iv) of
paragraph (a) of subdivision 2 of section 421-a of the real property tax
law, as amended by chapter 618 of the laws of 2007, is amended to read
as follows:
Unless excluded by local law, in the city of New York, the benefits of
this subparagraph shall be available in the borough of Manhattan for new
multiple dwellings on tax lots now existing or hereafter created south
of or adjacent to either side of one hundred tenth street [which] THAT
commence construction after July first, nineteen hundred ninety-two and
before [December twenty-eighth] JUNE FIFTEENTH, two thousand [ten]
FIFTEEN only if:
S 42. Subparagraph (ii) of paragraph (c) of subdivision 2 of section
421-a of the real property tax law, as amended by chapter 618 of the
laws of 2007, is amended to read as follows:
(ii) construction is commenced after January first, nineteen hundred
seventy-five and before [December twenty-eighth] JUNE FIFTEENTH, two
thousand [ten] FIFTEEN provided, however, that such commencement period
shall not apply to multiple dwellings eligible for benefits under
subparagraph (iv) of paragraph (a) of this subdivision;
S 43. The real property tax law is amended by adding a new section
421-m to read as follows:
S 421-M. EXEMPTION OF CERTAIN NEW OR SUBSTANTIALLY REHABILITATED
MULTIPLE DWELLINGS FROM LOCAL TAXATION. 1. (A) A CITY, TOWN OR VILLAGE
MAY, BY LOCAL LAW, PROVIDE FOR THE EXEMPTION OF MULTIPLE DWELLINGS
CONSTRUCTED OR SUBSTANTIALLY REHABILITATED IN A BENEFIT AREA DESIGNATED
IN SUCH LOCAL LAW FROM TAXATION AND SPECIAL AD VALOREM LEVIES, BUT NOT
SPECIAL ASSESSMENTS, AS PROVIDED IN THIS SECTION. SUBSEQUENT TO THE
ADOPTION OF SUCH A LOCAL LAW, ANY OTHER MUNICIPAL CORPORATION IN WHICH
THE DESIGNATED BENEFIT AREA IS LOCATED MAY LIKEWISE EXEMPT SUCH PROPERTY
FROM ITS TAXATION AND SPECIAL AD VALOREM LEVIES BY LOCAL LAW, OR IN THE
CASE OF A SCHOOL DISTRICT, BY RESOLUTION.
(B) AS USED IN THIS SECTION, THE TERM "BENEFIT AREA" MEANS THE AREA
WITHIN A CITY, TOWN OR VILLAGE, DESIGNATED BY LOCAL LAW, TO WHICH AN
EXEMPTION, ESTABLISHED PURSUANT TO THIS SECTION, APPLIES.
(C) THE TERM "SUBSTANTIAL REHABILITATION" MEANS ALL WORK NECESSARY TO
BRING A PROPERTY INTO COMPLIANCE WITH ALL APPLICABLE LAWS AND REGU-
LATIONS INCLUDING BUT NOT LIMITED TO THE INSTALLATION, REPLACEMENT OR
REPAIR OF HEATING, PLUMBING, ELECTRICAL AND RELATED SYSTEMS AND THE
ELIMINATION OF ALL HAZARDOUS AND IMMEDIATELY HAZARDOUS VIOLATIONS IN THE
STRUCTURE IN ACCORDANCE WITH STATE AND LOCAL LAWS AND REGULATIONS OF
STATE AND LOCAL AGENCIES. SUBSTANTIAL REHABILITATION MAY ALSO INCLUDE
RECONSTRUCTION OR WORK TO IMPROVE THE HABITABILITY OR PROLONG THE USEFUL
LIFE OF THE PROPERTY; PROVIDED SUBSTANTIAL REHABILITATION SHALL NOT
INCLUDE ORDINARY MAINTENANCE OR REPAIR.
S. 5856 45 A. 8518
(D) THE TERM "MULTIPLE DWELLING" MEANS A DWELLING, OTHER THAN A HOTEL,
WHICH IS TO BE OCCUPIED OR IS OCCUPIED AS THE RESIDENCE OR HOME OF THREE
OR MORE FAMILIES LIVING INDEPENDENTLY OF ONE ANOTHER, WHETHER SUCH
DWELLING IS RENTED OR OWNED AS A COOPERATIVE OR CONDOMINIUM.
2. (A) ELIGIBLE NEW OR SUBSTANTIALLY REHABILITATED MULTIPLE DWELLINGS
IN A DESIGNATED BENEFIT AREA SHALL BE EXEMPT ACCORDING TO THE FOLLOWING
SCHEDULE:
CONSTRUCTION OR SUBSTANTIAL REHABILITATION OF CERTAIN
MULTIPLE DWELLINGS
DURING CONSTRUCTION OR EXEMPTION
SUBSTANTIAL REHABILITATION
(MAXIMUM THREE YEARS) 100%
FOLLOWING COMPLETION OF WORK YEAR:
1 THROUGH 12 100%
13-14 80%
15-16 60%
17-18 40%
19-20 20%
(B) PROVIDED THAT TAXES SHALL BE PAID DURING ANY SUCH PERIOD AT LEAST
IN THE AMOUNT OF THE TAXES PAID ON SUCH LAND AND ANY IMPROVEMENTS THERE-
ON DURING THE TAX YEAR PRECEDING THE COMMENCEMENT OF SUCH EXEMPTION.
PROVIDED FURTHER THAT NO OTHER EXEMPTION MAY BE GRANTED CONCURRENTLY TO
THE SAME IMPROVEMENTS UNDER ANY OTHER SECTION OF LAW.
3. TO BE ELIGIBLE FOR EXEMPTION UNDER THIS SECTION:
(A) SUCH CONSTRUCTION OR SUBSTANTIAL REHABILITATION SHALL TAKE PLACE
ON VACANT, PREDOMINANTLY VACANT OR UNDER-UTILIZED LAND, OR ON LAND
IMPROVED WITH A NON-CONFORMING USE OR ON LAND CONTAINING ONE OR MORE
SUBSTANDARD OR STRUCTURALLY UNSOUND DWELLINGS, OR A DWELLING THAT HAS
BEEN CERTIFIED AS UNSANITARY BY THE LOCAL HEALTH AGENCY.
(B) SUCH CONSTRUCTION OR SUBSTANTIAL REHABILITATION WAS COMMENCED ON
OR AFTER THE EFFECTIVE DATE OF THE LOCAL LAW, ORDINANCE OR RESOLUTION
DESCRIBED IN SUBDIVISION ONE OF THIS SECTION, BUT NO LATER THAN JUNE
FIFTEENTH, TWO THOUSAND FIFTEEN.
(C) AT LEAST TWENTY PERCENT OF THE UNITS SHALL BE AFFORDABLE TO INDI-
VIDUALS OR FAMILIES OF LOW AND MODERATE INCOME WHOSE INCOMES AT THE TIME
OF INITIAL OCCUPANCY DO NOT EXCEED NINETY PERCENT OF THE AREA MEDIAN
INCOME ADJUSTED FOR FAMILY SIZE AND THE INDIVIDUAL OR FAMILY SHALL PAY
IN RENT OR MONTHLY CARRYING CHARGES NO MORE THAN THIRTY PERCENT OF THEIR
ADJUSTED GROSS INCOME AS REPORTED IN THEIR FEDERAL INCOME TAX RETURN, OR
WOULD BE REPORTED IF SUCH RETURN WERE REQUIRED, LESS SUCH PERSONAL
EXEMPTIONS AND DEDUCTIONS AND MEDICAL EXPENSES AS ARE ACTUALLY TAKEN BY
THE TAXPAYER, AS VERIFIED ACCORDING TO PROCEDURES ESTABLISHED BY THE
STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL. SUCH PROCEDURES SHALL
BE PUBLISHED THROUGH NOTICE IN THE STATE REGISTER WITHOUT FURTHER ACTION
REQUIRED FOR THE PROMULGATION OF REGULATIONS PURSUANT TO THE STATE
ADMINISTRATIVE PROCEDURE ACT.
(D) SUCH CONSTRUCTION OR SUBSTANTIAL REHABILITATION IS CARRIED OUT
WITH THE ASSISTANCE OF GRANTS, LOANS OR SUBSIDIES FOR THE CONSTRUCTION
OR SUBSTANTIAL REHABILITATION OF AFFORDABLE HOUSING FROM ANY FEDERAL,
STATE OR LOCAL AGENCY OR INSTRUMENTALITY THEREOF.
4. APPLICATION FOR EXEMPTION UNDER THIS SECTION SHALL BE MADE ON A
FORM PRESCRIBED BY THE COMMISSIONER AND FILED WITH THE ASSESSOR ON OR
BEFORE THE APPLICABLE TAXABLE STATUS DATE.
5. IN THE CASE OF PROPERTY WHICH IS USED PARTIALLY AS A MULTIPLE
DWELLING AND PARTIALLY FOR COMMERCIAL OR OTHER PURPOSES, THE PROPERTY
SHALL BE ELIGIBLE FOR THE EXEMPTION AUTHORIZED BY THIS SECTION IF:
S. 5856 46 A. 8518
(A) THE SQUARE FOOTAGE OF THE PORTION USED AS A MULTIPLE DWELLING
REPRESENTS AT LEAST FIFTY PERCENT OF THE SQUARE FOOTAGE OF THE ENTIRE
PROPERTY;
(B) AT LEAST TWENTY PERCENT OF THE UNITS ARE AFFORDABLE TO INDIVIDUALS
OR FAMILIES OF LOW AND MODERATE INCOME, AS DETERMINED ACCORDING TO THE
CRITERIA SET FORTH IN PARAGRAPH (C) OF SUBDIVISION THREE OF THIS
SECTION; AND
(C) THE REQUIREMENTS OF THIS SECTION ARE OTHERWISE SATISFIED WITH
RESPECT TO THE PORTION OF THE PROPERTY USED AS A MULTIPLE DWELLING.
6. THE EXEMPTION AUTHORIZED BY THIS SECTION SHALL NOT BE AVAILABLE IN
A JURISDICTION TO WHICH THE PROVISIONS OF SECTION FOUR HUNDRED
TWENTY-ONE-A OR FOUR HUNDRED TWENTY-ONE-C OF THIS ARTICLE ARE APPLICA-
BLE.
7. A CITY, TOWN OR VILLAGE PROVIDING AN EXEMPTION PURSUANT TO THE
AUTHORITY OF THIS SECTION SHALL DEVELOP AN INCOME MONITORING AND COMPLI-
ANCE PLAN TO MEET THE CRITERIA OF PARAGRAPH (C) OF SUBDIVISION THREE OF
THIS SECTION AND SUCH PLAN SHALL BE REVIEWED, EVALUATED AND APPROVED BY
THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL AS A CONDITION OF
PROVIDING SUCH EXEMPTION. SUCH PLAN SHALL INCLUDE AN ANNUAL CERTIF-
ICATION THAT THE MULTIPLE DWELLING RECEIVING AN EXEMPTION MEETS THE
REQUIREMENTS OF THIS SECTION. SUCH CERTIFICATION SHALL BE PROVIDED TO
THE ASSESSOR AND THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL. IF
SUCH REQUIREMENTS ARE NOT MET, THEN THE MULTIPLE DWELLING SHALL NOT
QUALIFY FOR THE EXEMPTION IN THAT YEAR.
S 44. The division of housing and community renewal shall, pursuant to
this act, promulgate rules and regulations to implement and enforce all
provisions of this act and any law renewed or continued by this act.
S 45. Severability clause. If any clause, sentence, paragraph, subdi-
vision, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
S 46. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after June 24, 2011; provided,
however, that:
(a) the amendments to chapter 4 of title 26 of the administrative code
of the city of New York made by sections seven, twelve, fourteen,
sixteen, thirty-five and thirty-six of this act shall expire on the same
date as such chapter expires and shall not affect the expiration of such
chapter as provided under section 26-520 of such law;
(b) the amendments to section 4 of chapter 576 of the laws of 1974
constituting the emergency tenant protection act of nineteen seventy-
four made by sections eight, ten, thirteen, eighteen, twenty-nine and
thirty of this act shall expire on the same date as such act expires and
shall not affect the expiration of such act as provided in section 17 of
chapter 576 of the laws of 1974;
(c) the amendments to section 2 of the emergency housing rent control
law made by sections nine, twenty-five, thirty-one and thirty-two of
this act shall expire on the same date as such law expires and shall not
affect the expiration of such law as provided in subdivision 2 of
section 1 of chapter 274 of the laws of 1946;
S. 5856 47 A. 8518
(d) the amendments to chapter 3 of title 26 of the administrative code
of the city of New York made by sections eleven, fifteen, thirty-three
and thirty-four of this act shall remain in full force and effect only
as long as the public emergency requiring the regulation and control of
residential rents and evictions continues, as provided in subdivision 3
of section 1 of the local emergency housing rent control act;
(e) the amendments to section 421-a of the real property tax law made
by sections thirty-eight, thirty-nine, forty, forty-one and forty-two of
this act shall be deemed to have been in full force and effect as of
December 28, 2010; and
(f) the amendments made by sections thirty through thirty-seven of
this act shall not be grounds for dismissal of any owner application for
deregulation where a notice or application for such deregulation, that
is filed or served between May 1, 2011 through July 1, 2011, used the
income and rent deregulation thresholds in effect prior to the effective
date of such sections. Any tenant failure to respond to such notice or
application because of the use of such income or deregulation thresholds
shall constitute grounds to afford such tenant an additional opportunity
to respond.
PART C
Section 1. This act enacts into law major components of legislation
relating to mandate relief. Each component is wholly contained within a
Subpart identified as Subparts A through H. The effective date for each
particular provision contained within such Subpart is set forth in the
last section of such Subpart. Any provision in any section contained
within a Subpart, including the effective date of the Subpart, which
makes a reference to a section "of this act", when used in connection
with that particular component, shall be deemed to mean and refer to the
corresponding section of the Subpart in which it is found. Section three
of this act sets forth the general effective date of this act.
SUBPART A
Section 1. Subdivisions 3 and 5 of section 97-g of the state finance
law, subdivision 3 as amended by section 45 of part K of chapter 81 of
the laws of 2002 and subdivision 5 as added by chapter 710 of the laws
of 1964, are amended to read as follows:
3. Moneys of the fund shall be available to the commissioner of gener-
al services for the purchase of food, supplies and equipment for [state
institutions and other] state agencies, and for the purpose of furnish-
ing or providing centralized services to or for [state institutions and
other] state agencies; PROVIDED FURTHER THAT SUCH MONEYS SHALL BE AVAIL-
ABLE TO THE COMMISSIONER OF GENERAL SERVICES FOR PURPOSES PURSUANT TO
ITEMS (D) AND (F) OF SUBDIVISION FOUR OF THIS SECTION TO OR FOR POLI-
TICAL SUBDIVISIONS. Beginning the first day of April, two thousand two,
moneys in such fund shall also be transferred by the state comptroller
to the revenue bond tax fund account of the general debt service fund in
amounts equal to those required for payments to authorized issuers for
revenue bonds issued pursuant to article five-C of this chapter for the
purpose of lease purchases and installment purchases by or for state
agencies and institutions for personal or real property purposes.
5. The amount expended from such fund for the above-stated purposes
shall be charged against the [state institution or] agency OR POLITICAL
S. 5856 48 A. 8518
SUBDIVISIONS ABOVE receiving such food, supplies, equipment and services
and all payments received therefor shall be credited to such fund.
S 2. Subdivision 4 of section 97-g of the state finance law, as
amended by chapter 410 of the laws of 2009, is amended to read as
follows:
4. The term "centralized services" as used in this section shall mean
and include only (a) communications services, (b) mail, messenger and
reproduction services, (c) computer services, (d) fuels, including
natural gas, hydrogen, biofuels and gasoline, and automotive services,
(e) renovation and maintenance services, (f) purchases of electricity,
renewable energy, renewable energy credits or attributes from the power
authority of the state of New York and, in consultation with the power
authority of the state of New York, from other suppliers, (g) real prop-
erty management services, (h) building design and construction services,
(i) parking services, (j) distribution of United States department of
agriculture donated foods to eligible recipients, pursuant to all appli-
cable statutes and regulations, (k) distribution of federal surplus
property donations to all eligible recipients, pursuant to applicable
statutes and regulations, and (l) payments and related services for
lease purchases and installment purchases by or for state agencies and
institutions for personal property purposes financed through the issu-
ance of certificates of participation. The services defined in items (a)
through (C), (E), (G) AND (h) of this subdivision shall be provided to
state agencies and institutions only.
S 3. Intentionally omitted
S 4. Section 103 of the general municipal law is amended by adding a
new subdivision 1-b to read as follows:
1-B. A POLITICAL SUBDIVISION OR ANY DISTRICT THEREIN SHALL HAVE THE
OPTION OF PURCHASING INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS HARD-
WARE, SOFTWARE AND PROFESSIONAL SERVICES THROUGH COOPERATIVE PURCHASING
PERMISSIBLE PURSUANT TO FEDERAL GENERAL SERVICES ADMINISTRATION INFORMA-
TION TECHNOLOGY SCHEDULE SEVENTY OR ANY SUCCESSOR SCHEDULE. A POLITICAL
SUBDIVISION OR ANY DISTRICT THEREIN THAT PURCHASES THROUGH GENERAL
SERVICES ADMINISTRATION SCHEDULE SEVENTY, INFORMATION TECHNOLOGY AND
CONSOLIDATED SCHEDULE CONTRACTS SHALL COMPLY WITH FEDERAL SCHEDULE
ORDERING PROCEDURES AS PROVIDED IN FEDERAL ACQUISITION REGULATION
8.405-1 OR 8.405-2 OR SUCCESSOR REGULATIONS, WHICHEVER IS APPLICABLE.
ADHERENCE TO SUCH PROCEDURES SHALL CONSTITUTE COMPLIANCE WITH THE
COMPETITIVE BIDDING REQUIREMENTS UNDER THIS SECTION.
S 5. Subdivision 3 of section 103 of the general municipal law, as
amended by chapter 343 of the laws of 2007, is amended to read as
follows:
3. Notwithstanding the provisions of subdivision one of this section,
any officer, board or agency of a political subdivision or of any
district therein authorized to make purchases of materials, equipment or
supplies, or to contract for services, may make such purchases, or may
contract for services, other than services subject to article [eight or]
nine of the labor law, when available, through the county in which the
political subdivision or district is located or through any county with-
in the state subject to the rules established pursuant to subdivision
two of section four hundred eight-a of the county law; provided that the
political subdivision or district for which such officer, board or agen-
cy acts shall accept sole responsibility for any payment due the vendor
or contractor. All purchases and all contracts for such services shall
be subject to audit and inspection by the political subdivision or
district for which made. Prior to making such purchases or contracts the
S. 5856 49 A. 8518
officer, board or agency shall consider whether such contracts will
result in cost savings after all factors, including charges for service,
material, and delivery, have been considered. No officer, board or agen-
cy of a political subdivision or of any district therein shall make any
purchase or contract for any such services through the county in which
the political subdivision or district is located or through any county
within the state when bids have been received for such purchase or such
services by such officer, board or agency, unless such purchase may be
made or the contract for such services may be entered into upon the same
terms, conditions and specifications at a lower price through the coun-
ty.
S 6. Subdivision 2 of section 408-a of the county law, as amended by
section 2 of part X of chapter 62 of the laws of 2003, is amended to
read as follows:
2. The board of supervisors may, in the case of any purchase contract
or any contract for services, other than services subject to article
[eight or] nine of the labor law, of the county to be awarded to the
lowest responsible bidder after advertisement for bids, authorize the
inclusion of a provision whereby purchases may be made or such services
may be obtained under such contract by any political subdivision or fire
company (as both are defined in section one hundred of the general
municipal law) or district. In such event, the board shall adopt rules
prescribing the conditions under which, and the manner in which,
purchases may be made or services may be obtained by such political
subdivision, fire company or district.
S 7. Section 104 of the general municipal law, as amended by chapter
137 of the laws of 2008, is amended to read as follows:
S 104. Purchase through office of general services; CERTAIN FEDERAL
CONTRACTS. 1. Notwithstanding the provisions of section one hundred
three of this article or of any other general, special or local law, any
officer, board or agency of a political subdivision, of a district ther-
ein, of a fire company or of a voluntary ambulance service authorized to
make purchases of materials, equipment, food products, or supplies, or
services available pursuant to sections one hundred sixty-one and one
hundred sixty-seven of the state finance law, may make such purchases,
except of printed material, through the office of general services
subject to such rules as may be established from time to time pursuant
to sections one hundred sixty-three and one hundred sixty-seven of the
state finance law [or through the general services administration pursu-
ant to section 1555 of the federal acquisition streamlining act of 1994,
P.L. 103-355]; provided that any such purchase shall exceed five hundred
dollars and that the political subdivision, district, fire company or
voluntary ambulance service for which such officer, board or agency acts
shall accept sole responsibility for any payment due the vendor. All
purchases shall be subject to audit and inspection by the political
subdivision, district, fire company or voluntary ambulance service for
which made. No officer, board or agency of a political subdivision, or a
district therein, of a fire company or of a voluntary ambulance service
shall make any purchase through such office when bids have been received
for such purchase by such officer, board or agency, unless such purchase
may be made upon the same terms, conditions and specifications at a
lower price through such office. Two or more fire companies or voluntary
ambulance services may join in making purchases pursuant to this
section, and for the purposes of this section such groups shall be
deemed "fire companies or voluntary ambulance services."
S. 5856 50 A. 8518
2. NOTWITHSTANDING THE PROVISIONS OF SECTION ONE HUNDRED THREE OF THIS
ARTICLE OR OF ANY OTHER GENERAL, SPECIAL OR LOCAL LAW, ANY OFFICER,
BOARD OR AGENCY OF A POLITICAL SUBDIVISION, OR OF A DISTRICT THEREIN,
MAY MAKE PURCHASES FROM FEDERAL GENERAL SERVICE ADMINISTRATION SUPPLY
SCHEDULES PURSUANT TO SECTION 211 OF THE FEDERAL E-GOVERNMENT ACT OF
2002, P.L. 107-347, AND PURSUANT TO SECTION 1122 OF THE NATIONAL DEFENSE
AUTHORIZATION ACT FOR FISCAL YEAR 1994, P.L. 103-160, OR ANY SUCCESSOR
SCHEDULES IN ACCORDANCE WITH PROCEDURES ESTABLISHED PURSUANT THERETO.
PRIOR TO MAKING SUCH PURCHASES THE OFFICER, BOARD OR AGENCY SHALL
CONSIDER WHETHER SUCH PURCHASES WILL RESULT IN COST SAVINGS AFTER ALL
FACTORS, INCLUDING CHARGES FOR SERVICE, MATERIAL, AND DELIVERY, HAVE
BEEN CONSIDERED.
S 8. Subdivision 2 of section 27 of the municipal home rule law, as
amended by chapter 259 of the laws of 1987, is amended to read as
follows:
2. Each such certified copy shall contain the text only of the local
law without the brackets and without the matter within the brackets, the
matter with a line run through it, or the italicizing or underscoring,
if any, to indicate the changes made by it, except that each such certi-
fied copy of a local law enacted by a city with a population of one
million or more shall be printed in the same form as the official copy
of the proposed local law which became the local law provided that line
numbers, the printed number of the bill and explanatory matter shall be
omitted[, and also have attached thereto a certificate executed by the
corporation counsel, municipal attorney or other principal law officer
to the effect that it contains the correct text and that all proper
proceedings have been had or taken for the enactment of such local law,
which certificate shall constitute presumptive evidence thereof,
provided that any failure or omission so to certify shall not invalidate
such local law].
S 9. This act shall take effect immediately, provided, however that:
1. sections one, four, five, six and seven of this act shall expire
and be deemed repealed 3 years after they shall have become a law;
2. the amendments to subdivision 4 of section 97-g of the state
finance law made by section two of this act shall not affect the expira-
tion and reversion of such subdivision as provided in section 3 of chap-
ter 410 of the laws of 2009, and shall expire and be deemed repealed
therewith;
3. sections four, five, six and seven of this act shall apply to any
contract let or awarded on or after such effective date.
SUBPART B
Section 1. Section 99-r of the general municipal law, as amended by
section 1 of part B of chapter 494 of the laws of 2009, is amended to
read as follows:
S 99-r. Contracts for services. Notwithstanding any other provisions
of law to the contrary, the governing board of any municipal corporation
may enter into agreements and/or contracts with any state agency includ-
ing any department, board, bureau, commission, division, office, coun-
cil, committee, or officer of the state, whether permanent or temporary,
or a public benefit corporation or public authority, or a soil and water
conservation district, and any unit of the state university of New York,
pursuant to and consistent with sections three hundred fifty-five and
sixty-three hundred one of the education law within or without such
municipal corporation to provide or receive fuel, equipment, maintenance
S. 5856 51 A. 8518
and repair, supplies, water supply, street sweeping or maintenance,
sidewalk maintenance, right-of-way maintenance, storm water and other
drainage, sewage disposal, landscaping, mowing, or any other services of
government. Such state agency, soil and water conservation district, or
unit of the state university of New York, within the limits of any
specific statutory appropriation authorized and made available therefor
by the legislature or by the governing body responsible for the opera-
tion of such state agency, soil and water conservation district, or unit
of the state university of New York may contract with any municipal
corporation for such services as herein provided AND MAY PROVIDE, IN
AGREEMENTS AND/OR CONTRACTS ENTERED INTO PURSUANT TO THIS SECTION, FOR
THE RECIPROCAL PROVISION OF SERVICES OR OTHER CONSIDERATION OF APPROXI-
MATELY EQUIVALENT VALUE, INCLUDING, BUT NOT LIMITED TO, ROUTINE AND/OR
EMERGENCY SERVICES, MONIES, EQUIPMENT, BUILDINGS AND FACILITIES, MATERI-
ALS OR A COMMITMENT TO PROVIDE FUTURE ROUTINE AND/OR EMERGENCY SERVICES,
MONIES, EQUIPMENT, BUILDINGS AND FACILITIES OR MATERIALS. Any such
contract may be entered into by direct negotiations and shall not be
subject to the provisions of section one hundred three of this chapter.
S 2. Paragraph (e) of subdivision 4 of section 10-c of the highway
law, as amended by chapter 413 of the laws of 1991, is amended to read
as follows:
(e) Funds allocated for local street or highway projects under this
subdivision shall be used to undertake work on a project either with the
municipality's own forces or by contract, provided however, that whenev-
er the estimate for the construction contract work exceeds one hundred
thousand dollars BUT DOES NOT EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS
SUCH WORK MUST BE PERFORMED EITHER WITH THE MUNICIPALITY'S OWN FORCES OR
BY CONTRACT LET BY COMPETITIVE BID IN ACCORDANCE WITH THE PROVISIONS OF
SECTION ONE HUNDRED THREE OF THE GENERAL MUNICIPAL LAW AND PROVIDED
FURTHER, HOWEVER, THAT WHENEVER THE ESTIMATE FOR THE CONSTRUCTION
CONTRACT WORK EXCEEDS TWO HUNDRED FIFTY THOUSAND DOLLARS such work must
be performed by contract let by competitive bid in accordance with the
provisions of section one hundred three of the general municipal law.
S 3. Section 102 of the general municipal law, as added by chapter 861
of the laws of 1953 and subdivision 2 as amended by chapter 537 of the
laws of 1984, is amended to read as follows:
S 102. Deposits on plans and specifications. 1. Notwithstanding any
inconsistent provision of any general, special or local law, the offi-
cer, board or agency of any political subdivision or of any district
therein, charged with the duty of preparing plans and specifications for
and awarding or entering into contracts for the performance of public
work, [shall] MAY require, as a deposit to guarantee the safe return of
such plans and specifications, the payment of a fixed sum of money, not
exceeding one hundred dollars for each copy thereof, by persons or
corporations desiring a copy thereof. Any person or corporation desiring
a copy of such plans and specifications and making the [deposit] PAYMENT
required by this section shall be furnished with one copy of the plans
and specifications.
2. If a proposal is duly submitted by any person or corporation making
the deposit required by subdivision one and such proposal is accompanied
by a certified check or other security in accordance with the require-
ments contained in the plans and specifications or in the public adver-
tisement for bids, and if the copy of the plans and specifications used
by such person or corporation, other than the successful bidder, is
returned in good condition within thirty days following the award of the
contract covered by such plans and specifications or the rejection of
S. 5856 52 A. 8518
the bid of such person or corporation, the full amount of such deposit
for one copy of the plans and specifications shall be returned to such
person or corporation, including the successful bidder. Partial
reimbursement, in an amount equal to the full amount of such deposit for
one set of plans and specifications per unsuccessful bidder or non-bid-
der less the actual cost of reproduction of the plans and specifications
as determined by the officer, board or agency of any political subdivi-
sion or of any district therein, charged with the duty of preparing the
plans and specifications, shall be made for the return of all other
copies of the plans and specifications in good condition within thirty
days following the award of the contract or the rejection of the bids
covered by such plans and specifications.
S 4. This act shall take effect immediately.
SUBPART C
Section 1. Section 72-c of the general municipal law, as amended by
chapter 229 of the laws of 1992, is amended to read as follows:
S 72-c. Expenses of members of the police department and other peace
officers in attending police training schools. The board or body of a
county, city, town or village authorized to appropriate and to raise
money by taxation and to make payments therefrom, is hereby authorized,
in its discretion, to appropriate and to raise money by taxation and to
make payments from such moneys, for the annual expenses of the members
of the police department of such municipal corporation in attending a
police training school, as provided by the regulations of the depart-
ment, either within such municipal corporation or elsewhere within the
state; and for the payment of reasonable expenses of such members and
other police officers or peace officers of the municipality while going
to, attending, and returning from any training school conducted by or
under the auspices of the federal bureau of investigation, whether with-
in or without the state. Notwithstanding any inconsistent provision of
any general, special or local law to the contrary, whenever a member of
the police department of a municipal corporation[, having a population
of ten thousand or less,] has attended a police training school, the
expense of which was borne by such municipal corporation, terminates
employment with such municipal corporation and commences employment with
any other municipal corporation or employer county sheriff, such employ-
er municipal corporation or employer county sheriff shall reimburse the
prior employer municipal corporation[, having a population of ten thou-
sand or less,] for such expenses, including, salary, tuition, enrollment
fees, books, and the cost of transportation to and from training school,
as follows: on a pro rata basis, to be calculated by subtracting from
the number of days in the three years following the date of the member's
graduation from police training school, the number of days between the
date of the member's graduation from training school and the date of the
termination of employment with the municipal corporation which paid for
such training, and multiplying the difference by the per diem cost of
such expenses, to be calculated by dividing the total cost of such
expenses by the number of days in the three years following the date of
the member's graduation, if such change in employment occurs within
three years of such member's graduation from police training school.
Provided, however, the employer municipal corporation or employer county
sheriff shall not be required to reimburse the prior employer municipal
corporation for that portion of such expenses which is reimbursable by
the member to the prior employer municipal corporation under the terms
S. 5856 53 A. 8518
of an employment or labor agreement. Provided, further, however, the
employer municipal corporation or employer county sheriff shall not be
required to reimburse the prior employer municipal corporation for such
basic training if such change in employment occurs after the expiration
of the validity of the member's certificate attesting to the satisfac-
tory completion of an approved municipal police basic training program.
S 2. Section 207-m of the general municipal law is REPEALED.
S 3. The opening paragraph and paragraph (l) of subdivision 4 of
section 20.40 of the criminal procedure law, paragraph (l) as amended by
chapter 346 of the laws of 2007, are amended to read as follows:
A person may be convicted in an appropriate criminal court of a
particular county, of an offense of which the criminal courts of this
state have jurisdiction pursuant to section 20.20, committed either by
his OR HER own conduct or by the conduct of another for which he OR SHE
is legally accountable pursuant to section 20.00 of the penal law, when:
(l) An offense of identity theft or unlawful possession of personal
[identification] IDENTIFYING information AND ALL CRIMINAL ACTS COMMITTED
AS PART OF THE SAME CRIMINAL TRANSACTION AS DEFINED IN SUBDIVISION TWO
OF SECTION 40.10 OF THIS CHAPTER may be prosecuted (i) in any county in
which part of the offense took place regardless of whether the defendant
was actually present in such county, or (ii) in the county in which the
person who suffers financial loss resided at the time of the commission
of the offense, or (iii) in the county where the person whose personal
[identification] IDENTIFYING information was used in the commission of
the offense resided at the time of the commission of the offense. The
law enforcement agency of any such county shall take a police report of
the matter and provide the complainant with a copy of such report at no
charge.
S 4. Section 176 of the family court act is amended to read as
follows:
S 176. Inter-county probation. [If a person placed under probation by
the family court resides in or moves to a county other than the county
in which he was placed on probation, the family court which placed him
on probation may transfer the proceedings to the county in which the
probationer resides or to which he has moved or may place him under the
supervision of the probation service attached to the family court in
which the probationer resides or to which he has moved.]
1. WHERE A PERSON PLACED ON PROBATION RESIDES IN ANOTHER JURISDICTION
WITHIN THE STATE AT THE TIME OF THE ORDER OF DISPOSITION, THE FAMILY
COURT WHICH PLACED HIM OR HER ON PROBATION SHALL TRANSFER SUPERVISION TO
THE PROBATION DEPARTMENT IN THE JURISDICTION IN WHICH THE PERSON
RESIDES. WHERE, AFTER A PROBATION DISPOSITION IS PRONOUNCED, A PROBA-
TIONER REQUESTS TO RESIDE IN ANOTHER JURISDICTION WITHIN THE STATE, THE
FAMILY COURT WHICH PLACED HIM OR HER ON PROBATION MAY, IN ITS
DISCRETION, APPROVE A CHANGE IN RESIDENCY AND, UPON APPROVAL, SHALL
TRANSFER SUPERVISION TO THE PROBATION DEPARTMENT SERVING THE COUNTY OF
THE PROBATIONER'S PROPOSED NEW RESIDENCE. ANY TRANSFER UNDER THIS SUBDI-
VISION MUST BE IN ACCORDANCE WITH RULES ADOPTED BY THE COMMISSIONER OF
THE DIVISION OF CRIMINAL JUSTICE SERVICES.
2. UPON COMPLETION OF A TRANSFER AS AUTHORIZED PURSUANT TO SUBDIVISION
ONE OF THIS SECTION, THE FAMILY COURT WITHIN THE JURISDICTION OF THE
RECEIVING PROBATION DEPARTMENT SHALL ASSUME ALL POWERS AND DUTIES OF THE
FAMILY COURT WHICH PLACED THE PROBATIONER ON PROBATION AND SHALL HAVE
SOLE JURISDICTION IN THE CASE. THE FAMILY COURT WHICH PLACED THE PROBA-
TIONER ON PROBATION SHALL IMMEDIATELY FORWARD ITS ENTIRE CASE RECORD TO
THE RECEIVING COURT.
S. 5856 54 A. 8518
3. UPON COMPLETION OF A TRANSFER AS AUTHORIZED PURSUANT TO SUBDIVISION
ONE OF THIS SECTION, THE PROBATION DEPARTMENT IN THE RECEIVING JURISDIC-
TION SHALL ASSUME ALL POWERS AND DUTIES OF THE PROBATION DEPARTMENT IN
THE JURISDICTION OF THE FAMILY COURT WHICH PLACED THE PROBATIONER ON
PROBATION.
S 5. The mental hygiene law is amended by adding a new section 29.28
to read as follows:
S 29.28 PAYMENT OF COSTS FOR PROSECUTION OF INMATE-PATIENTS.
(A) WHEN AN INMATE-PATIENT, AS DEFINED IN SUBDIVISION (A) OF SECTION
29.27 OF THIS ARTICLE, WHO WAS COMMITTED FROM A STATE CORRECTIONAL
FACILITY, IS ALLEGED TO HAVE COMMITTED AN OFFENSE WHILE IN THE CUSTODY
OF THE DEPARTMENT, THE DEPARTMENT OF CORRECTIONS AND COMMUNITY SUPER-
VISION SHALL PAY ALL REASONABLE COSTS FOR THE PROSECUTION OF SUCH
OFFENSE, INCLUDING BUT NOT LIMITED TO, COSTS FOR: A GRAND JURY IMPANELED
TO HEAR AND EXAMINE EVIDENCE OF SUCH OFFENSE, PETIT JURORS, WITNESSES,
THE DEFENSE OF ANY INMATE FINANCIALLY UNABLE TO OBTAIN COUNSEL IN
ACCORDANCE WITH THE PROVISIONS OF THE COUNTY LAW, THE DISTRICT ATTORNEY,
THE COSTS OF THE SHERIFF AND THE APPOINTMENT OF ADDITIONAL COURT ATTEND-
ANTS, OFFICERS OR OTHER JUDICIAL PERSONNEL.
(B) IT SHALL BE THE DUTY OF THE GOVERNING BODY OF ANY COUNTY WHEREIN
SUCH PROSECUTION OCCURS TO CAUSE A SWORN STATEMENT OF ALL COSTS TO BE
FORWARDED TO THE DEPARTMENT. UPON CERTIFICATION BY THE DEPARTMENT THAT
SUCH COSTS AS AUTHORIZED BY THIS STATUTE HAVE BEEN INCURRED, THE DEPART-
MENT SHALL FORWARD THE PROPER VOUCHERS TO THE STATE COMPTROLLER. IT
SHALL BE THE DUTY OF THE COMPTROLLER TO EXAMINE SUCH STATEMENT AND TO
CORRECT SAME BY STRIKING THEREFROM ANY AND ALL ITEMS WHICH ARE NOT
AUTHORIZED PURSUANT TO THE PROVISIONS OF THIS SECTION AND AFTER CORRECT-
ING SUCH STATEMENT, THE COMPTROLLER SHALL DRAW HIS WARRANT FOR THE
AMOUNT OF ANY SUCH COSTS IN FAVOR OF THE APPROPRIATE COUNTY TREASURER,
WHICH SUM SHALL BE PAID TO SAID COUNTY TREASURER OUT OF ANY MONEYS
APPROPRIATED THEREFOR.
(C) THE DEPARTMENT SHALL, AFTER CONSULTATION WITH THE DIRECTOR OF THE
BUDGET, PROMULGATE RULES AND REGULATIONS TO CARRY OUT THE PROVISIONS OF
THIS SECTION.
S 6. This act shall take effect immediately, provided, that section
five of this act shall take effect on the thirtieth day after it shall
have become law.
SUBPART D
Section 1. Section 514 of the general municipal law, as amended by
chapter 492 of the laws of 1963, is amended to read as follows:
S 514. Filing of proposed plans. The municipality or agency, as the
case may be, shall file with the commissioner a copy of [each] ANY
proposed urban renewal program ASSISTED BY STATE LOANS, PERIODIC SUBSI-
DIES OR CAPITAL GRANTS, embodying the plans, layout, estimated cost and
proposed [methed] METHOD of financing. Any change made in [the] AN urban
renewal program ASSISTED BY STATE LOANS, PERIODIC SUBSIDIES OR CAPITAL
GRANTS shall be filed with the commissioner. From time to time prior to
completion, and with reasonable promptness after [each] ANY urban
renewal program ASSISTED BY STATE LOANS, PERIODIC SUBSIDIES OR CAPITAL
GRANTS shall have been completed, upon request of the commissioner, the
municipality or agency shall file with the commissioner a detailed
statement of the cost thereof.
Upon receipt of a copy of a proposed urban renewal program, or any
proposed change therein, the commissioner may transmit his criticism and
S. 5856 55 A. 8518
suggestions to the municipality or agency, as the case may be. No change
in an urban renewal program assisted by state loans, periodic subsidies
or capital grants may be made by a municipality or agency without the
approval of the commissioner.
S 2. Subdivision 1 of section 553 of the general municipal law, as
amended by chapter 681 of the laws of 1963, subparagraph 1 of paragraph
(a) as amended by chapter 213 of the laws of 1966, is amended to read as
follows:
1. (a) Upon the establishment of a municipal urban renewal agency by
special act of the legislature, the mayor of the city or village wherein
such agency is established, or the town board of the town, shall file
within six months after the effective date of the special act of the
legislature establishing such agency or before the first day of July,
nineteen hundred sixty-four, whichever date shall be later, [in the
office of the commissioner, and a duplicate] in the office of the secre-
tary of state, a certificate signed by him setting forth: (1) the effec-
tive date of the special act establishing the agency; (2) the name of
the agency; (3) the names of the members and their terms of office,
specifying which member is the chairman; and (4) facts establishing the
need for the establishment of an agency in such city, town or village.
(b) Every such agency shall be perpetual in duration, except that if
[(1) such certificate is not filed with and approved by the commissioner
within six months after the effective date of the special act of the
legislature establishing such agency or before the first day of July,
nineteen hundred sixty-four, whichever date shall be later, or if (2)],
at the expiration of ten years subsequent to the effective date of the
special act, there shall be outstanding no bonds or other obligations
theretofore issued by such agency or by the municipality for OR on [in]
behalf of the agency, then the corporate existence of such agency shall
thereupon terminate and it shall [there upon] THEREUPON be deemed to be
and shall be dissolved.
S 3. Subdivision 2 of section 553 of the general municipal law, as
added by chapter 921 of the laws of 1962, is amended to read as follows:
2. An agency shall be a corporate governmental agency, constituting a
public benefit corporation. Except as otherwise provided by special act
of the Legislature, an agency shall consist of not less than three nor
more than five members who shall be appointed by the mayor of a city or
village or the town board of a town and who shall serve at the pleasure
of the appointing authority. A member shall continue to hold office
until his successor is appointed and has qualified. The mayor of a city
or village, or the town board of a town, shall designate the first
chairman [and file with the commissioner a certificate of appointment or
re-appointment of any member]. Such members shall receive no compen-
sation for their services but shall be entitled to the necessary
expenses, including traveling expenses, incurred in the discharge of
their duties.
S 4. This act shall take effect immediately.
SUBPART E
Section 1. Section 410-x of the social services law is amended by
adding a new subdivision 8 to read as follows:
8. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, CHILD CARE
ASSISTANCE PAYMENTS MADE PURSUANT TO THIS SECTION MAY BE MADE BY DIRECT
DEPOSIT OR DEBIT CARD, AS ELECTED BY THE RECIPIENT, AND ADMINISTERED
ELECTRONICALLY, AND IN ACCORDANCE WITH SUCH GUIDELINES, AS MAY BE SET
S. 5856 56 A. 8518
FORTH BY REGULATION OF THE OFFICE OF CHILDREN AND FAMILY SERVICES. THE
OFFICE OF CHILDREN AND FAMILY SERVICES MAY ENTER INTO CONTRACTS ON
BEHALF OF LOCAL SOCIAL SERVICES DISTRICTS FOR SUCH DIRECT DEPOSIT OR
DEBIT CARD SERVICES IN ACCORDANCE WITH SECTION TWENTY-ONE-A OF THIS
CHAPTER.
S 2. Subdivision 2 of section 378 of the social services law, as
amended by chapter 555 of the laws of 1978, is amended to read as
follows:
2. Such certificates and licenses shall be valid for not more than
[one year] TWO YEARS after date of issue but may be renewed or extended
subject to regulations established by the [department] OFFICE OF CHIL-
DREN AND FAMILY SERVICES.
S 3. This act shall take effect immediately.
SUBPART F
Section 1. Subdivision 1 of section 3241 of the education law, as
amended by chapter 971 of the laws of 1969, is amended to read as
follows:
1. The board of education of each city, except in cities having a
population of one hundred twenty-five thousand or more, shall constitute
a permanent census board in such city. Such board shall, under its regu-
lations, cause a census of the children in its city to be taken and to
be amended from day to day, as changes of residence shall occur among
persons in such cities within the ages prescribed in subdivision two of
this section and as other persons shall come within the ages prescribed
therein and as other persons within such ages shall become residents of
such cities, so that there shall always be on file with such board a
complete census giving the facts and information required in subdivision
two of this section; PROVIDED, HOWEVER, THAT FOR PRE-SCHOOL STUDENTS
FROM BIRTH TO FIVE YEARS OF AGE, SUCH CENSUS MAY BE PREPARED AND FILED
BIENNIALLY ON OR BEFORE THE FIFTEENTH DAY OF OCTOBER.
S 2. Section 3242 of the education law, as amended by chapter 425 of
the laws of 1993, is amended to read as follows:
S 3242. School census in school districts. The trustees or board of
education of every school district may cause a census to be taken of all
children between birth and eighteen years of age, including all such
facts and information as are required in the census provided for in
section thirty-two hundred forty-one of this chapter. Such census shall
be prepared ANNUALLY FOR CHILDREN BETWEEN AGES FIVE AND EIGHTEEN WHO ARE
ENTITLED TO ATTEND THE PUBLIC SCHOOLS WITHOUT PAYMENT OF TUITION in
duplicate in their respective school districts, and one copy thereof
filed with the teacher or principal and the other copy filed with the
district superintendent or superintendent on or before the [fifteen]
FIFTEENTH day of October. FOR PRE-SCHOOL STUDENTS FROM BIRTH TO FIVE
YEARS OF AGE, SUCH CENSUS MAY BE PREPARED AND FILED BIENNIALLY ON OR
BEFORE THE FIFTEENTH DAY OF OCTOBER. Such census shall include the
reports and information required from cities as provided in section
thirty-two hundred forty-one. All information regarding a [handicapped
person] STUDENT WITH A DISABILITY under the age of twenty-one years
shall be filed annually with the superintendent of the board of cooper-
ative educational services of which said district may be a part.
S 3. Section 3635 of the education law is amended by adding a new
subdivision 8 to read as follows:
8. A. THE TRUSTEES OR BOARD OF EDUCATION OF A SCHOOL DISTRICT MAY, AT
ITS DISCRETION, PROVIDE STUDENT TRANSPORTATION BASED UPON PATTERNS OF
S. 5856 57 A. 8518
ACTUAL RIDERSHIP. THE ACTUAL RIDERSHIP SHALL BE DETERMINED BY A SCHOOL
DISTRICT BASED UPON DOCUMENTED HISTORY AND EXPERIENCE THAT YIELDS A
CONSISTENT PATTERN OF ELIGIBLE PUPILS NOT USING DISTRICT TRANSPORTATION;
OR MODELING OF FUTURE RIDERSHIP; OR THE SHARING OF TRANSPORTATION
REGIONALLY; OR OTHER CRITERIA APPROVED BY THE COMMISSIONER; PROVIDED
HOWEVER THAT ANY METHODOLOGY SHALL REQUIRE AN ADDITIONAL TEN PERCENT IN
SEATING CAPACITY ABOVE THE NUMBER OF SEATS DERIVED USING SUCH METHODOL-
OGY WHICH SHALL BE AVAILABLE IN CASE OF UNANTICIPATED RIDERS.
NOTHING IN THIS SUBDIVISION SHALL BE CONSTRUED TO REDUCE OR RELIEVE
SCHOOL DISTRICTS FROM THE RESPONSIBILITY OF PROVIDING TRANSPORTATION TO
STUDENTS OTHERWISE ELIGIBLE FOR SUCH TRANSPORTATION. NOTHING IN THIS
SUBDIVISION SHALL BE CONSTRUED TO AUTHORIZE A SCHOOL DISTRICT TO HAVE
STANDING PASSENGERS IN VIOLATION OF SECTION THIRTY-SIX HUNDRED
THIRTY-FIVE-C OF THIS ARTICLE, AND UNANTICIPATED RIDERSHIP SHALL NOT BE
DEEMED AN UNFORESEEN OCCURRENCE FOR PURPOSES OF SUBDIVISION TWO OF SUCH
SECTION AFTER THE FIRST DAY IN WHICH SUCH UNANTICIPATED RIDERSHIP
OCCURS.
ANY SCHOOL DISTRICT THAT, AT ITS DISCRETION, HAS ELECTED TO PROVIDE
STUDENT TRANSPORTATION BASED UPON PATTERNS OF ACTUAL RIDERSHIP SHALL
PLACE SUCH PLANS ON THE SCHOOL DISTRICT'S WEBSITE, IF ONE EXISTS, ON OR
BEFORE AUGUST FIFTEENTH OF THE SCHOOL YEAR IN WHICH THE TRANSPORTATION
PLAN WILL BE IMPLEMENTED AND SHALL BE REQUIRED TO HAVE A BACK UP PLAN AS
PART OF THEIR EMERGENCY MANAGEMENT PRACTICES FOR PUPIL TRANSPORTATION IN
THE EVENT THAT A BUS IS FILLED BEYOND CAPACITY.
B. THE COMMISSIONER SHALL EVALUATE THE EFFECTIVENESS OF THIS SUBDIVI-
SION INCLUDING THE METHODOLOGIES USED BY SCHOOL DISTRICTS TO DETERMINE
THE PATTERNS OF ACTUAL RIDERSHIP AND WHETHER SUCH METHODOLOGIES ENSURE
THAT ALL STUDENTS OTHERWISE ELIGIBLE RECEIVE TRANSPORTATION AND THAT
STUDENT SAFETY IS ASSURED.
S 4. Clause (b) of subparagraph 3 of paragraph e of subdivision 6 of
section 3602 of the education law, as amended by section 1 of part F of
chapter 383 of the laws of 2001, is amended to read as follows:
(b) Such assumed amortization for a project approved by the commis-
sioner on or after the later of the first day of December, two thousand
one or thirty days after the date upon which this subdivision shall have
become a law AND PRIOR TO THE FIRST DAY OF JULY, TWO THOUSAND ELEVEN or
for any debt service related to projects approved by the commissioner
prior to such date where a bond, capital note or bond anticipation note
is first issued on or after [such date] THE FIRST DAY OF DECEMBER, TWO
THOUSAND ONE to fund such projects, shall commence: (i) eighteen months
after such approval or (ii) on the date of receipt by the commissioner
of a certification by the district that a general construction contract
has been awarded for such project by the district, whichever is later,
and SUCH ASSUMED AMORTIZATION FOR A PROJECT APPROVED BY THE COMMISSIONER
ON OR AFTER THE FIRST DAY OF JULY, TWO THOUSAND ELEVEN SHALL COMMENCE:
(III) EIGHTEEN MONTHS AFTER SUCH APPROVAL OR (IV) ON THE DATE OF RECEIPT
BY THE COMMISSIONER OF BOTH THE FINAL CERTIFICATE OF SUBSTANTIAL
COMPLETION OF THE PROJECT ISSUED BY THE ARCHITECT OR ENGINEER AND THE
FINAL COST REPORT FOR SUCH PROJECT, WHICHEVER IS LATER OR (V) UPON THE
DATE OF A FINDING BY THE COMMISSIONER THAT THE CERTIFICATE OF SUBSTAN-
TIAL COMPLETION OF THE PROJECT HAS BEEN ISSUED BY THE ARCHITECT OR ENGI-
NEER, BUT THE DISTRICT IS UNABLE TO COMPLETE THE FINAL COST REPORT
BECAUSE OF CIRCUMSTANCES BEYOND THE CONTROL OF THE DISTRICT. SUCH
ASSUMED AMORTIZATION shall provide for equal semiannual payments of
principal and interest based on an interest rate established pursuant to
subparagraph five of this paragraph for such purpose for the school year
S. 5856 58 A. 8518
during which such certification is received. The first installment of
obligations issued by the school district in support of such projects
may mature not later than the dates established pursuant to sections
21.00 and 22.10 of the local finance law.
S 5. Subdivision 35 of section 1604 of the education law, as added by
chapter 263 of the laws of 2005, is amended to read as follows:
35. a. In their discretion, to adopt a resolution establishing the
office of claims auditor and appoint a claims auditor who shall hold his
or her position subject to the pleasure of such trustees. IN ITS
DISCRETION, THE TRUSTEES MAY ADOPT A RESOLUTION ESTABLISHING THE OFFICE
OF DEPUTY CLAIMS AUDITOR WHO SHALL ACT AS CLAIMS AUDITOR IN THE ABSENCE
OF THE CLAIMS AUDITOR. Such claims auditor shall report directly to the
trustees. No person shall be eligible for appointment to the office of
claims auditor OR DEPUTY CLAIMS AUDITOR who shall also be:
(1) a trustee of the school district;
(2) the clerk or treasurer of the school district;
(3) the superintendent of schools or other official of the district
responsible for business management;
(4) the person designated as purchasing agent; or
(5) clerical or professional personnel directly involved in accounting
and purchasing functions of the school district.
b. Such claims auditor OR DEPUTY CLAIMS AUDITOR shall not be required
to be a resident of the district, and the [position] POSITIONS of claims
auditor AND DEPUTY CLAIMS AUDITOR shall be classified in the exempt
class of the civil service. The trustees, at any time after the estab-
lishment of the office of claims auditor OR DEPUTY CLAIMS AUDITOR, may
adopt a resolution abolishing such office, whereupon such office shall
be abolished. When the office of claims auditor shall have been estab-
lished and a claims auditor shall have been appointed and shall have
qualified, the powers and duties of the trustees with respect to claims
auditing, and allowing or rejecting all accounts, charges, claims or
demands against the school district, shall devolve upon and thereafter
be exercised by such claims auditor during the continuance of such
office. The trustees shall be permitted to delegate the claims audit
function TO ONE OR MORE INDEPENDENT ENTITIES by using (1) inter-munici-
pal cooperative agreements, (2) shared services to the extent authorized
by section nineteen hundred fifty of this title, or (3) independent
contractors, to fulfill this function.
C. WHEN THE TRUSTEES DELEGATE THE CLAIMS AUDIT FUNCTION USING AN
INTER-MUNICIPAL COOPERATIVE AGREEMENT, SHARED SERVICE AUTHORIZED BY
SECTION NINETEEN HUNDRED FIFTY OF THIS TITLE, OR AN INDEPENDENT CONTRAC-
TOR, THE TRUSTEES SHALL BE RESPONSIBLE FOR AUDITING ALL CLAIMS FOR
SERVICES FROM THE ENTITY PROVIDING THE DELEGATED CLAIMS AUDITOR, EITHER
DIRECTLY OR THROUGH A DELEGATION TO A DIFFERENT INDEPENDENT ENTITY.
S 6. Subdivision 20-a of section 1709 of the education law, as
amended by chapter 263 of the laws of 2005, is amended to read as
follows:
20-a. a. In its discretion to adopt a resolution establishing the
office of claims auditor and appoint a claims auditor who shall hold his
or her position subject to the pleasure of such board of education. IN
ITS DISCRETION, THE BOARD OF EDUCATION MAY ADOPT A RESOLUTION ESTABLISH-
ING THE OFFICE OF DEPUTY CLAIMS AUDITOR WHO SHALL ACT AS CLAIMS AUDITOR
IN THE ABSENCE OF THE CLAIMS AUDITOR. Such claims auditor shall report
directly to the board of education. No person shall be eligible for
appointment to the office of claims auditor OR DEPUTY CLAIMS AUDITOR who
shall also be:
S. 5856 59 A. 8518
(1) a member of the board of education;
(2) the clerk or treasurer of the board of education;
(3) the superintendent of schools or other official of the district
responsible for business management;
(4) the person designated as purchasing agent; or
(5) clerical or professional personnel directly involved in accounting
and purchasing functions of the school district.
b. Such claims auditor OR DEPUTY CLAIMS AUDITOR shall not be required
to be a resident of the district, and such position shall be classified
in the exempt class of the civil service. Such board of education, at
any time after the establishment of the office of claims auditor OR
DEPUTY CLAIMS AUDITOR, may adopt a resolution abolishing such office,
whereupon such office shall be abolished. When the office of claims
auditor shall have been established and a claims auditor shall have been
appointed and shall have qualified, the powers and duties of the board
of education with respect to claims auditing, allowing or rejecting all
accounts, charges, claims or demands against the school district shall
devolve upon and thereafter be exercised by such claims auditor, during
the continuance of such office. A board shall be permitted to delegate
the claims audit function TO ONE OR MORE INDEPENDENT ENTITIES by using
(1) inter-municipal cooperative agreements, (2) shared services to the
extent authorized by section nineteen hundred fifty of this title, or
(3) independent contractors, to fulfill this function.
C. WHEN THE BOARD OF EDUCATION DELEGATES THE CLAIMS AUDIT FUNCTION
USING AN INTER-MUNICIPAL COOPERATIVE AGREEMENT, SHARED SERVICE AUTHOR-
IZED BY SECTION NINETEEN HUNDRED FIFTY OF THIS TITLE, OR AN INDEPENDENT
CONTRACTOR, THE BOARD SHALL BE RESPONSIBLE FOR AUDITING ALL CLAIMS FOR
SERVICES FROM THE ENTITY PROVIDING THE DELEGATED CLAIMS AUDITOR, EITHER
DIRECTLY OR THROUGH A DELEGATION TO A DIFFERENT INDEPENDENT ENTITY.
S 7. Paragraph e of subdivision 2 of section 1711 of the education
law, as amended by chapter 263 of the laws of 2005, is amended to read
as follows:
e. To have supervision and direction of associate, assistant and other
superintendents, directors, supervisors, principals, teachers, lectur-
ers, medical inspectors, nurses, claims auditors, DEPUTY CLAIMS AUDI-
TORS, attendance officers, janitors and other persons employed in the
management of the schools or the other educational activities of the
district authorized by this chapter and under the direction and manage-
ment of the board of education; to transfer teachers from one school to
another, or from one grade of the course of study to another grade in
such course, and to report immediately such transfers to such board for
its consideration and actions; to report to such board violations of
regulations and cases of insubordination, and to suspend an associate,
assistant or other superintendent, director, supervisor, expert, princi-
pal, teacher or other employee until the next regular meeting of such
board, when all facts relating to the case shall be submitted to such
board for its consideration and action.
S 8. Subdivision 1 of section 1724 of the education law, as amended by
chapter 259 of the laws of 1975, is amended to read as follows:
1. No claim against a central school district or a union free school
district, except for compensation for services of an officer or employee
engaged at agreed wages by the hour, day, week, month or year or for the
principal of or interest on indebtedness of the district, shall be paid
unless an itemized voucher therefor approved by the officer whose action
gave rise or origin to the claim, shall have been presented to the board
of education of the district and shall have been audited and allowed;
S. 5856 60 A. 8518
PROVIDED, HOWEVER THAT IN THE CASE OF A SCHOOL DISTRICT WITH A PUBLIC
SCHOOL ENROLLMENT OF TEN THOUSAND STUDENTS OR MORE, THE BOARD OF EDUCA-
TION MAY, AT ITS DISCRETION, USE A RISK-BASED OR SAMPLING METHODOLOGY TO
DETERMINE WHICH CLAIMS ARE TO BE AUDITED IN LIEU OF AUDITING ALL CLAIMS
SO LONG AS IT IS DETERMINED BY RESOLUTION OF THE BOARD OF EDUCATION THAT
THE METHODOLOGY FOR CHOOSING THE SAMPLE PROVIDES REASONABLE ASSURANCE
THAT ALL THE CLAIMS REPRESENTED IN THE SAMPLE ARE PROPER CHARGES AGAINST
THE SCHOOL DISTRICT. The board of education shall be authorized, but
not required, to prescribe the form of such voucher.
S 9. Subdivision 5 of section 2503 of the education law, as amended by
chapter 263 of the laws of 2005, is amended to read as follows:
5. Shall create, abolish, maintain and consolidate such positions,
divisions, boards or bureaus as, in its judgment, may be necessary for
the proper and efficient administration of its work; shall appoint prop-
erly qualified persons to fill such positions, including a superinten-
dent of schools, such associate, assistant and other superintendents,
directors, supervisors, principals, teachers, lecturers, special
instructors, medical inspectors, nurses, claims auditors, DEPUTY CLAIMS
AUDITORS, attendance officers, secretaries, clerks, custodians, janitors
and other employees and other persons or experts in educational, social
or recreational work or in the business management or direction of its
affairs as said board shall determine necessary for the efficient
management of the schools and other educational, social, recreational
and business activities; and shall determine their duties except as
otherwise provided herein.
S 10. Subdivision 5 of section 2508 of the education law, as amended
by chapter 263 of the laws of 2005, is amended to read as follows:
5. To have supervision and direction of associate, assistant and other
superintendents, directors, supervisors, principals, teachers, lectur-
ers, medical inspectors, nurses, claims auditors, DEPUTY CLAIMS AUDI-
TORS, attendance officers, janitors and other persons employed in the
management of the schools or the other educational activities of the
district authorized by this chapter and under the direction and manage-
ment of the board of education; to transfer teachers from one school to
another, or from one grade of the course of study to another grade in
such course, and to report immediately such transfers to such board for
its consideration and action; to report to such board violations of
regulations and cases of insubordination, and to suspend an associate,
assistant or other superintendent, director, supervisor, expert, princi-
pal, teacher or other employee until the next regular meeting of such
board, when all facts relating to the case shall be submitted to such
board for its consideration and action.
S 11. Subdivision 2 of section 2523 of the education law, as amended
by chapter 263 of the laws of 2005, is amended to read as follows:
2. Such moneys shall be disbursed only on the signature of such treas-
urer by checks payable to the person or persons entitled thereto. The
board of education may in its discretion require that such checks-other
than checks for salary, be countersigned by another officer of such
district. When authorized by resolution of the board of education such
checks may be signed with the facsimile signature of the treasurer and
other district officer whose signature is required, as reproduced by a
machine or device commonly known as a check-signer. Each check drawn by
the treasurer shall state the fund against which it is drawn. No fund
shall be overdrawn nor shall any check be drawn upon one fund to pay a
claim chargeable to another. No money shall be paid out by the treasurer
except upon the warrant of the clerk of the board of education after
S. 5856 61 A. 8518
audit and allowance by such board, or if a claims auditor OR DEPUTY
CLAIMS AUDITOR shall have been appointed, except upon the warrant of
such claims auditor OR DEPUTY CLAIMS AUDITOR after audit and allowance
thereof; provided, however, when provision for payment has been made in
the annual budget the treasurer may pay, without such warrant or prior
audit and allowance, (a) the principal of and interest on bonds, notes
or other evidences of indebtedness of the district or for the payment of
which the district shall be liable, and (b) compensation for services of
officers or employees engaged at agreed wages by the hour, day, week,
month or year upon presentation of a duly certified payroll; AND
PROVIDED FURTHER THAT IN THE CASE OF A CITY SCHOOL DISTRICT WITH A
PUBLIC SCHOOL ENROLLMENT OF TEN THOUSAND STUDENTS OR MORE, THE BOARD OF
EDUCATION MAY, AT ITS DISCRETION, USE A RISK-BASED OR SAMPLING METHODOL-
OGY TO DETERMINE WHICH CLAIMS ARE TO BE AUDITED IN LIEU OF AUDITING ALL
CLAIMS SO LONG AS IT IS DETERMINED BY RESOLUTION OF THE BOARD OF EDUCA-
TION THAT THE METHODOLOGY FOR CHOOSING THE SAMPLE PROVIDES REASONABLE
ASSURANCE THAT ALL THE CLAIMS REPRESENTED IN THE SAMPLE ARE PROPER
CHARGES AGAINST THE SCHOOL DISTRICT. By resolution duly adopted, the
board may determine to enter into a contract to provide for the deposit
of the periodic payroll of the school district in a bank or trust compa-
ny for disbursal by it in accordance with provisions of section ninety-
six-b of the banking law.
S 12. Subdivision 1 of section 2524 of the education law, as amended
by chapter 263 of the laws of 2005, is amended to read as follows:
1. No claim against a city school district, except for compensation
for services of an officer or employee engaged at agreed wages by the
hour, day, week, month or year or for the principal of or interest on
indebtedness of the district, shall be paid unless an itemized voucher
therefor approved by the officer whose action gave rise or origin to the
claim, shall have been presented to the board of education, or THE
claims auditor OR DEPUTY CLAIMS AUDITOR of the city school district and
shall have been audited and allowed, PROVIDED THAT IN THE CASE OF A CITY
SCHOOL DISTRICT WITH A PUBLIC SCHOOL ENROLLMENT OF TEN THOUSAND STUDENTS
OR MORE, THE BOARD OF EDUCATION MAY, AT ITS DISCRETION, USE A RISK-BASED
OR SAMPLING METHODOLOGY TO DETERMINE WHICH CLAIMS ARE TO BE AUDITED IN
LIEU OF AUDITING ALL CLAIMS SO LONG AS IT IS DETERMINED BY RESOLUTION OF
THE BOARD OF EDUCATION THAT THE METHODOLOGY FOR CHOOSING THE SAMPLE
PROVIDES REASONABLE ASSURANCE THAT ALL THE CLAIMS REPRESENTED IN THE
SAMPLE ARE PROPER CHARGES AGAINST THE SCHOOL DISTRICT. The board of
education shall be authorized, but not required, to prescribe the form
of such voucher.
S 13. Section 2525 of the education law, as amended by chapter 263 of
the laws of 2005, is amended to read as follows:
S 2525. Audit of claims. 1. The board of education, in considering any
claim OR WHERE APPLICABLE A SAMPLING OF CLAIMS, may require any person
presenting the same to be sworn before it or before any member thereof
and to give testimony relative to the justness and accuracy of such
claim, and may take evidence and examine witnesses under oath in respect
to the claim, and for that purpose may issue subpoenas for the attend-
ance of witnesses. When a claim OR WHERE APPLICABLE A SAMPLING OF CLAIMS
has been finally audited by the board of education the clerk of such
board shall endorse thereon or attach thereto a certificate of such
audit and file the same as a public record in his or her office. When
any claim has been so audited and a certificate thereof so filed, the
clerk of the board of education shall draw a warrant specifying the name
of the claimant, the amount allowed and the fund, function and object
S. 5856 62 A. 8518
chargeable therewith and such other information as may be deemed neces-
sary and essential, directed to the treasurer of the district, authoriz-
ing and directing him or her to pay to the claimant the amount allowed
upon his or her claim. A copy of such warrant shall be filed in the
office of the clerk.
2. In a city school district in which the office of claims auditor OR
DEPUTY CLAIMS AUDITOR has been created, the claims auditor OR DEPUTY
CLAIMS AUDITOR in considering a claim OR WHERE APPLICABLE A SAMPLING OF
CLAIMS, may require any person presenting the same to be sworn before
him or her and to give testimony relative to the justness and accuracy
of such claim, and may take evidence and examine witnesses under oath in
respect to the claim, and for that purpose may issue subpoenas for the
attendance of witnesses. When a claim, OR WHERE APPLICABLE A SAMPLING OF
CLAIMS, has been finally audited by the claims auditor OR DEPUTY CLAIMS
AUDITOR he or she shall endorse thereon or attach thereto a certificate
of such audit and file the same as a public record in his or her office.
When any claim has been so audited and a certificate thereof so filed,
the claims auditor OR DEPUTY CLAIMS AUDITOR shall draw a warrant speci-
fying the number of the claim, the name of the claimant, the amount
allowed and the fund, function and object chargeable therewith and such
other information as may be deemed necessary or essential, directed to
the treasurer of the district, authorizing and directing him or her to
pay to the claimant the amount allowed upon his or her claim. IN THE
CASE OF A CITY SCHOOL DISTRICT WITH A PUBLIC SCHOOL ENROLLMENT OF TEN
THOUSAND STUDENTS OR MORE, THE BOARD OF EDUCATION MAY, AT ITS
DISCRETION, USE A RISK-BASED OR SAMPLING METHODOLOGY TO DETERMINE WHICH
CLAIMS ARE TO BE AUDITED IN LIEU OF AUDITING ALL CLAIMS SO LONG AS IT IS
DETERMINED BY RESOLUTION OF THE BOARD OF EDUCATION THAT THE METHODOLOGY
FOR CHOOSING THE SAMPLE PROVIDES REASONABLE ASSURANCE THAT ALL THE
CLAIMS REPRESENTED IN THE SAMPLE ARE PROPER CHARGES AGAINST THE SCHOOL
DISTRICT. A copy of such warrant shall be filed in the office of the
clerk.
S 14. Section 2526 of the education law, as amended by chapter 263 of
the laws of 2005, is amended to read as follows:
S 2526. Claims auditor. 1. The board of education of a city school
district may adopt a resolution establishing the office of claims audi-
tor and appoint a claims auditor who shall hold his or her position
subject to the pleasure of such board of education. IN ITS DISCRETION,
THE BOARD MAY ADOPT A RESOLUTION ESTABLISHING THE OFFICE OF DEPUTY
CLAIMS AUDITOR WHO SHALL ACT AS CLAIMS AUDITOR IN THE ABSENCE OF THE
CLAIMS AUDITOR. Such claims auditor shall report directly to the board
of education. No person shall be eligible for appointment to the office
of claims auditor OR DEPUTY CLAIMS AUDITOR who shall be:
(1) a member of the board of education;
(2) the clerk or treasurer of the board of education;
(3) the superintendent of schools or other official of the district
responsible for business management;
(4) the person designated as purchasing agent; or
(5) clerical or professional personnel directly involved in accounting
and purchasing functions of the school district.
1-a. The [position] POSITIONS of claims auditor AND DEPUTY CLAIMS
AUDITOR shall be classified in the exempt class of civil service. Such
board of education, at any time after the establishment of the office of
claims auditor OR DEPUTY CLAIMS AUDITOR, may adopt a resolution abolish-
ing such office, whereupon such office shall be abolished.
S. 5856 63 A. 8518
2. When the office of claims auditor shall have been established and a
claims auditor shall have been appointed and shall have qualified, the
powers and duties of the board of education with respect to claims
auditing, allowing or rejecting all accounts, charges, claims or demands
against the city school district shall devolve upon and thereafter be
exercised by such claims auditor, during the continuance of such office.
The board of education shall be permitted to delegate the claims audit
function TO ONE OR MORE INDEPENDENT ENTITIES by using (1) inter-munici-
pal cooperative agreements, (2) shared services to the extent authorized
by section nineteen hundred fifty of this title, or (3) independent
contractors, to fulfill this function.
3. WHEN THE BOARD OF EDUCATION DELEGATES THE CLAIMS AUDIT FUNCTION
USING AN INTER-MUNICIPAL COOPERATIVE AGREEMENT, SHARED SERVICE AUTHOR-
IZED BY SECTION NINETEEN HUNDRED FIFTY OF THIS TITLE, OR AN INDEPENDENT
CONTRACTOR, THE BOARD SHALL BE RESPONSIBLE FOR AUDITING ALL CLAIMS FOR
SERVICES FROM THE ENTITY PROVIDING THE DELEGATED CLAIMS AUDITOR, EITHER
DIRECTLY OR THROUGH A DELEGATION TO A DIFFERENT INDEPENDENT ENTITY.
S 15. Section 2527 of the education law, as amended by chapter 263 of
the laws of 2005, is amended to read as follows:
S 2527. Official undertakings. The clerk of the board of education or,
where the office of claims auditor OR DEPUTY CLAIMS AUDITOR has been
created, the claims auditor OR DEPUTY CLAIMS AUDITOR, and the treasurer,
collector and such other officers and employees as the board of educa-
tion shall designate, shall, before they enter upon the duties of their
respective offices or positions, each execute to the school district and
file with the school district clerk an official undertaking in such sum
and with such corporate surety as the board of education shall direct
and approve. The board of education may, at any time, require any such
officer or employee to file a new official undertaking for such sum and
with such corporate surety as the board shall approve. Such undertakings
as shall have been approved by the board of education shall forthwith be
filed with the school district clerk. The expense of any undertaking
executed pursuant to this section shall be a school district charge.
S 16. Subdivision 2-a of section 2554 of the education law, as amended
by chapter 263 of the laws of 2005, is amended to read as follows:
2-a. a. In its discretion to adopt a resolution establishing the
office of claims auditor and appoint a claims auditor who shall hold his
or her position subject to the pleasure of the board. IN ITS DISCRETION,
THE BOARD MAY ADOPT A RESOLUTION ESTABLISHING ONE OR MORE OFFICES OF
DEPUTY CLAIMS AUDITOR WHO SHALL ACT AS CLAIMS AUDITOR IN THE ABSENCE OF
THE CLAIMS AUDITOR. Such claims auditor shall report directly to the
board of education. No person shall be eligible for appointment to the
office of claims auditor OR DEPUTY CLAIMS AUDITOR who shall be
(1) a member of the board of education;
(2) a clerk or treasurer of the board of education;
(3) the superintendent of schools or other official of the district
responsible for business management;
(4) the person designated as purchasing agent; or
(5) clerical or professional personnel directly involved in accounting
and purchasing functions of the school district.
b. The [position] POSITIONS of claims auditor OR DEPUTY CLAIMS AUDITOR
shall be classified in the exempt class of civil service. The board of
education, at any time after the establishment of the office of claims
auditor OR DEPUTY CLAIMS AUDITOR, may adopt a resolution abolishing the
office. When the office of claims auditor shall have been established
and a claims auditor shall have been appointed and shall have qualified,
S. 5856 64 A. 8518
the powers and duties of the board of education with respect to auditing
accounts, charges, claims or demands against the city school district
shall devolve upon and thereafter be exercised by such claims auditor,
during the continuance of the office. The board of education shall be
permitted to delegate the claims audit function TO ONE OR MORE INDEPEND-
ENT ENTITIES by using (1) inter-municipal cooperative agreements, or (2)
independent contractors, to fulfill this function.
C. WHEN THE BOARD OF EDUCATION DELEGATES THE CLAIMS AUDIT FUNCTION
USING AN INTER-MUNICIPAL COOPERATIVE AGREEMENT, SHARED SERVICE AUTHOR-
IZED BY SECTION NINETEEN HUNDRED FIFTY OF THIS TITLE, OR AN INDEPENDENT
CONTRACTOR, THE BOARD SHALL BE RESPONSIBLE FOR AUDITING ALL CLAIMS FOR
SERVICES FROM THE ENTITY PROVIDING THE DELEGATED CLAIMS AUDITOR, EITHER
DIRECTLY OR THROUGH A DELEGATION TO A DIFFERENT INDEPENDENT ENTITY.
S 17. Subdivision 2 of section 2562 of the education law, as amended
by chapter 263 of the laws of 2005, is amended to read as follows:
2. The said board of education may require any person presenting for
settlement an account or claim for any cause whatever against it to be
sworn before it or a committee thereof, or before the claims auditor OR
DEPUTY CLAIMS AUDITOR, or before any person designated by said board,
touching such account or claim, and when so sworn, to answer orally as
to any facts relative to the justness of such account or claim. A member
of the board, the claims auditor, or any other person designated as
hereinbefore stated, shall have the power to administer an oath to any
person who shall give testimony to the justness of such account or
claim, and for the purpose of securing such testimony may issue subpoe-
nas for the attendance of witnesses. Wilful false swearing before the
said board of education, a committee thereof, the claims auditor OR
DEPUTY CLAIMS AUDITOR, or before any person designated as hereinbefore
stated, is perjury and punishable as such.
S 18. Subdivision 6 of section 2566 of the education law, as amended
by chapter 263 of the laws of 2005, is amended to read as follows:
6. To have supervision and direction of associate, assistant, district
and other superintendents, directors, supervisors, principals, teachers,
lecturers, medical inspectors, nurses, claims auditors, DEPUTY CLAIMS
AUDITORS, attendance officers, janitors and other persons employed in
the management of the schools or the other educational activities of the
city authorized by this chapter and under the direction and management
of the board of education, except that in the city school districts of
the cities of Buffalo and Rochester to also appoint, within the amounts
budgeted therefor, such associate, assistant and district superinten-
dents and all other supervising staff who are excluded from the right to
bargain collectively pursuant to article fourteen of the civil service
law; to transfer teachers from one school to another, or from one grade
of the course of study to another grade in such course, and to report
immediately such transfers to said board for its consideration and
action; to report to said board of education violations of regulations
and cases of insubordination, and to suspend an associate, assistant,
district or other superintendent, director, supervisor, expert, princi-
pal, teacher or other employee until the next regular meeting of the
board, when all facts relating to the case shall be submitted to the
board for its consideration and action.
S 19. Paragraph a of subdivision 1 of section 2576 of the education
law, as amended by chapter 263 of the laws of 2005, is amended to read
as follows:
a. The salary of the superintendent of schools, associate, district or
assistant or other superintendents, examiners, directors, supervisors,
S. 5856 65 A. 8518
principals, teachers, lecturers, special instructors, claims auditors,
DEPUTY CLAIMS AUDITORS, medical inspectors, nurses, attendance officers,
clerks, custodians and janitors and the salary, fees or compensation of
all other employees appointed or employed by said board of education. In
addition, the expenses of personnel utilized to fulfill the internal
audit function pursuant to section twenty-one hundred sixteen-b of this
[chapter] TITLE.
S 20. Subdivisions 2 and 4 of section 2580 of the education law,
subdivision 2 as amended by chapter 263 of the laws of 2005 and subdivi-
sion 4 as amended by chapter 452 of the laws of 1964, are amended to
read as follows:
2. Such funds shall be disbursed by authority of the board of educa-
tion upon written orders drawn on the city treasurer or other fiscal
officer of the city. Such orders shall be signed by the superintendent
of schools and the secretary of the board of education or such other
officers as the board may authorize. If a claims auditor OR DEPUTY
CLAIMS AUDITOR shall have been appointed, orders shall be signed by
[the] SUCH claims auditor; provided, however, that the board may
require, in addition, the signature of such other officer or officers as
it may by resolution direct. Orders shall be numbered consecutively and
shall specify the purpose for which they are drawn and the person or
corporation to whom they are payable.
4. It shall be unlawful for a city treasurer or other officer having
the custody of such city funds to permit their use for any purpose other
than that for which they are lawfully authorized; they shall be paid out
only on audit of the board of education or as otherwise provided herein;
PROVIDED, HOWEVER, THAT THE BOARD OF EDUCATION MAY, AT ITS DISCRETION,
USE A RISK-BASED OR SAMPLING METHODOLOGY TO DETERMINE WHICH CLAIMS ARE
TO BE AUDITED IN LIEU OF AUDITING ALL CLAIMS SO LONG AS IT IS DETERMINED
BY RESOLUTION OF THE BOARD OF EDUCATION THAT THE METHODOLOGY FOR CHOOS-
ING THE SAMPLE PROVIDES REASONABLE ASSURANCE THAT ALL THE CLAIMS REPRES-
ENTED IN THE SAMPLE ARE PROPER CHARGES AGAINST THE SCHOOL DISTRICT.
Payments from such funds shall be made only by checks signed by the
treasurer or other custodian of such moneys and payable to the person or
persons entitled thereto and countersigned either by the comptroller, or
in a city having no comptroller, by an officer designated by the officer
or body having the general control of the financial affairs of such
city. The board of education of such city shall make, in addition to
such classification of its funds and accounts as it desires for its own
use and information, such further classification of the funds under its
management and control and of the disbursements thereof as the comp-
troller of the city, or the officer or body having the general control
of the financial affairs of such city, shall require, and such board
shall furnish such data in relation to such funds and their disburse-
ments as the comptroller or such other financial officer or body of the
city shall require.
S 21. The education law is amended by adding a new section 1527-c to
read as follows:
S 1527-C. SHARED SUPERINTENDENT PROGRAM. NOTWITHSTANDING ANY OTHER
PROVISION OF LAW, RULE OR REGULATION TO THE CONTRARY, THE GOVERNING
BOARD OF A SCHOOL DISTRICT WITH AN ENROLLMENT OF LESS THAN ONE THOUSAND
STUDENTS IN THE PREVIOUS YEAR SHALL BE AUTHORIZED TO ENTER INTO A SCHOOL
SUPERINTENDENT SHARING CONTRACT WITH NO MORE THAN TWO ADDITIONAL SCHOOL
DISTRICTS EACH OF WHICH HAD FEWER THAN ONE THOUSAND IN ENROLLED PUPILS
IN THE PREVIOUS YEAR. EACH SHARED SUPERINTENDENT ARRANGEMENT SHALL BE
GOVERNED BY THE BOARDS OF EDUCATION OF THE SCHOOL DISTRICTS PARTICIPAT-
S. 5856 66 A. 8518
ING IN THE SHARED CONTRACT. PROVIDED HOWEVER, THAT THIS SECTION SHALL
NOT BE CONSTRUED TO ALTER, AFFECT OR IMPAIR ANY EMPLOYMENT CONTRACT
WHICH IS IN EFFECT ON OR BEFORE JULY FIRST, TWO THOUSAND THIRTEEN. ANY
SCHOOL DISTRICT WHICH HAS ENTERED INTO A SCHOOL SUPERINTENDENT SHARING
PROGRAM WILL CONTINUE TO BE ELIGIBLE TO COMPLETE SUCH CONTRACT NOTWITH-
STANDING THAT THE ENROLLMENT OF THE SCHOOL DISTRICT EXCEEDED ONE THOU-
SAND STUDENTS AFTER ENTERING INTO A SHARED SUPERINTENDENT CONTRACT.
S 22. Section 1604 of the education law is amended by adding a new
subdivision 21-b to read as follows:
21-B. A. THE TRUSTEES ARE AUTHORIZED TO PROVIDE REGIONAL TRANSPORTA-
TION SERVICES BY RENDERING SUCH SERVICES JOINTLY WITH OTHER SCHOOL
DISTRICTS OR BOARDS OF COOPERATIVE EDUCATIONAL SERVICES. SUCH SERVICES
MAY INCLUDE PUPIL TRANSPORTATION BETWEEN HOME AND SCHOOL, TRANSPORTATION
DURING THE DAY TO AND FROM SCHOOL AND A SPECIAL EDUCATION PROGRAM OR
SERVICE OR A PROGRAM AT A BOARD OF COOPERATIVE EDUCATIONAL SERVICES OR
AN APPROVED SHARED PROGRAM AT ANOTHER SCHOOL DISTRICT, TRANSPORTATION
FOR FIELD TRIPS OR TO AND FROM EXTRACURRICULAR ACTIVITIES, AND COOPER-
ATIVE SCHOOL BUS MAINTENANCE.
B. THE TRUSTEES ARE AUTHORIZED TO ENTER INTO A CONTRACT WITH ANOTHER
SCHOOL DISTRICT, A COUNTY, MUNICIPALITY, OR THE STATE OFFICE OF CHILDREN
AND FAMILY SERVICES TO PROVIDE TRANSPORTATION FOR CHILDREN, INCLUDING
CONTRACTS TO PROVIDE SUCH TRANSPORTATION AS REGIONAL TRANSPORTATION
SERVICES, PROVIDED THAT THE CONTRACT COST IS APPROPRIATE. IN DETERMINING
THE APPROPRIATE TRANSPORTATION CONTRACT COST, THE TRANSPORTATION SERVICE
PROVIDER SCHOOL DISTRICT SHALL USE A CALCULATION CONSISTENT WITH REGU-
LATIONS ADOPTED BY THE COMMISSIONER FOR THE PURPOSE OF ASSURING THAT
CHARGES REFLECT THE TRUE COSTS THAT WOULD BE INCURRED BY A PRUDENT
PERSON IN THE CONDUCT OF A COMPETITIVE TRANSPORTATION BUSINESS.
S 23. Paragraphs g and h of subdivision 25 of section 1709 of the
education law, paragraph g as added by chapter 367 of the laws of 1979
and paragraph h as added by chapter 700 of the laws of 1993, are amended
to read as follows:
g. The board of education is authorized to provide regional transpor-
tation services by rendering such services jointly with other school
districts or boards of cooperative educational services. Such services
may include pupil transportation between home and school, TRANSPORTATION
DURING THE DAY TO AND FROM SCHOOL AND A SPECIAL EDUCATION PROGRAM OR
SERVICE OR A PROGRAM AT A BOARD OF COOPERATIVE EDUCATIONAL SERVICES OR
AN APPROVED SHARED PROGRAM AT ANOTHER SCHOOL DISTRICT, TRANSPORTATION
FOR FIELD TRIPS OR TO AND FROM EXTRACURRICULAR ACTIVITIES, and cooper-
ative school bus maintenance.
h. The board of education is authorized to enter into a contract with
another school district, a county, municipality, or the state [division
for youth] OFFICE OF CHILDREN AND FAMILY SERVICES to provide transporta-
tion for children, INCLUDING CONTRACTS TO PROVIDE SUCH TRANSPORTATION AS
REGIONAL TRANSPORTATION SERVICES, provided that the contract cost is
appropriate. In determining the appropriate transportation contract
cost, the transportation service provider school district shall use a
calculation consistent with regulations adopted by the commissioner for
the purpose of assuring that charges reflect the true costs that would
be incurred by a prudent person in the conduct of a competitive trans-
portation business.
S 24. Paragraph b of subdivision 2 of section 33 of the general
municipal law, as added by chapter 267 of the laws of 2005, is amended
to read as follows:
S. 5856 67 A. 8518
b. In undertaking such audits the comptroller's review shall include,
but not be limited to:
(1) examining, auditing and evaluating financial documents and records
of school districts, BOCES and charter schools,
(2) assessing the current financial practices of school districts,
BOCES and charter schools to ensure that they are consistent with estab-
lished standards, INCLUDING WHETHER ANY SCHOOL DISTRICT THAT USES A
RISK-BASED OR SAMPLING METHODOLOGY TO DETERMINE WHICH CLAIMS ARE TO BE
AUDITED IN LIEU OF AUDITING ALL CLAIMS HAS ADOPTED A METHODOLOGY THAT
PROVIDES REASONABLE ASSURANCE THAT ALL THE CLAIMS REPRESENTED IN THE
SAMPLE ARE PROPER CHARGES AGAINST THE SCHOOL DISTRICT; and
(3) determining that school districts, BOCES, and charter schools
provide for adequate protections against any fraud, theft, or profes-
sional misconduct.
S 25. The comptroller shall review the effectiveness of allowing
school districts to use a risk-based or sampling methodology to deter-
mine which claims are to be audited in lieu of auditing all claims
including whether this practice maintains adequate school district
fiscal accountability and any recommendations for improvements or
modifications that should be made and whether school districts should be
authorized to continue such practice. Such report shall be issued to the
governor and the legislature by January 15, 2014.
S 26. This act shall take effect immediately provided, however, that
the provisions of section three of this act shall expire June 30, 2014
when upon such date the provisions of such section shall be deemed
repealed; provided, further that the provisions of sections eight, elev-
en, twelve, thirteen and twenty of this act shall expire July 1, 2014
when upon such date the provisions of such sections shall be deemed
repealed.
SUBPART G
Section 1. Paragraph 1 of subdivision (c) of section 81.44 of the
mental hygiene law, as added by chapter 175 of the laws of 2008, is
amended to read as follows:
1. serve a copy of the statement of death upon the court examiner, the
duly appointed personal representative of the decedent's estate, or, if
no [person] PERSONAL representative has been appointed, then upon the
personal representative named in the decedent's will or any trust
instrument, if known, UPON THE LOCAL DEPARTMENT OF SOCIAL SERVICES and
upon the public administrator of the chief fiscal officer of the county
in which the guardian was appointed, and
S 2. Subdivision 4 of section 458-b of the social services law is
amended by adding a new paragraph (d) to read as follows:
(D) PAYMENTS PURSUANT TO THIS SECTION MAY BE MADE BY DIRECT DEPOSIT OR
DEBIT CARD, AS ELECTED BY THE RECIPIENT, AND ADMINISTERED ELECTRON-
ICALLY, AND IN ACCORDANCE WITH SECTION TWENTY-ONE-A OF THIS CHAPTER AND
WITH SUCH GUIDELINES AS MAY BE SET FORTH BY REGULATION OF THE OFFICE OF
CHILDREN AND FAMILY SERVICES. THE OFFICE OF CHILDREN AND FAMILY SERVICES
MAY ENTER INTO CONTRACTS ON BEHALF OF LOCAL SOCIAL SERVICES DISTRICTS
FOR SUCH DIRECT DEPOSIT OR DEBIT CARD SERVICES IN ACCORDANCE WITH
SECTION TWENTY-ONE-A OF THIS CHAPTER.
S 3. This act shall take effect immediately; provided, however that
section one of this act shall take effect on the ninetieth day after it
shall have become law; provided, further, that section two of this act
S. 5856 68 A. 8518
shall take effect on the same date and in the same manner as section 4
of part F of chapter 58 of the laws of 2010, takes effect.
SUBPART H
Section 1. Section 204-a of the state administrative procedure act,
as added by chapter 479 of the laws of 2001, is amended to read as
follows:
S 204-a. Alternate methods for implementing regulatory mandates. 1. As
used in this section:
(a) "local government" means any county, city, town, village, school
district, fire district or other special district;
(b) "regulatory mandate" means any rule which requires one or more
local governments to create a new program, increase the level of service
for an existing program or otherwise comply with mandatory requirements;
and
(c) "petition" means a document submitted by a local government seek-
ing approval of an alternate method for implementing a regulatory
mandate.
2. A LOCAL GOVERNMENT, OR TWO OR MORE LOCAL GOVERNMENTS ACTING JOINT-
LY, MAY SEEK APPROVAL FOR AN ALTERNATE METHOD OF IMPLEMENTING A REGULA-
TORY MANDATE BY SUBMITTING TO THE APPROPRIATE STATE AGENCY A petition
WHICH shall include BUT NOT BE LIMITED TO:
(a) FOR EACH INVOLVED LOCAL GOVERNMENT, an indication that submission
has been approved by the governing body of the local government or by an
officer duly authorized by the governing body to do so;
(b) an identification of the regulatory mandate which is the subject
of the petition and information sufficient to establish that the
proposed alternate method of implementation is consistent with and will
effectively carry out the objectives of the regulatory mandate;
(c) information [on the process used by the local government to ensure
that all stakeholders have been appropriately involved in the process of
developing the alternate method, including where relevant the date of
any hearing, forum or other meeting to seek input on the alternate meth-
od] SUFFICIENT TO ESTABLISH THAT THE PROPOSED ALTERNATE METHOD OF IMPLE-
MENTATION IS CONSISTENT WITH AND WILL EFFECTIVELY CARRY OUT THE OBJEC-
TIVES OF THE REGULATORY MANDATE;
(d) documentation that the petition has been submitted to the author-
ized agents of any certified or recognized employee organizations
representing employees who would be effected by implementation of the
alternate method;
(e) [a proposed plan and timetable for compiling and reporting infor-
mation to facilitate evaluation of the effectiveness of the alternate
method;]
(f) if] WHETHER the state [provides] HAS PROVIDED financial assistance
for complying with the regulatory mandate[, any proposed amount or
percentage of such assistance which would be returned to the state due
to savings from implementing the alternate method]; and
[(g)] (F) the name, public office address and telephone number of the
representative of the local government who will coordinate requests for
additional information on the petition; AND
[3. Two] (G) WHERE TWO or more local governments [may submit a peti-
tion] HAVE PETITIONED jointly, [provided that each local government
meets the requirements of paragraphs (a), (c), (d) and (g) of subdivi-
sion two of this section, and provided that the petition] INFORMATION
S. 5856 69 A. 8518
WHICH addresses the manner in which responsibility for implementation
will be allocated between or among the participating local governments.
[4] 3. The agency shall cause a notice of the petition to be
published in the state register AND A NEWSPAPER OF GENERAL CIRCULATION
IN THE IMPACTED COMMUNITY and shall receive comments on the petition for
a period of thirty days. Such notice shall either include the full text
of the information set forth in the petition or shall set forth the
address of a website on which the full text has been posted. The notice
shall include the name, public office address and telephone number, and
may include a fax number and electronic mail address, of an agency
representative from whom additional information on the petition can be
obtained and to whom comments on the petition may be submitted.
[5. (a)] 4. Not later than thirty days after the last day of the
comment period, the agency shall approve or disapprove the petition. The
agency may approve the petition without change or with such conditions
or modifications as the agency deems appropriate. Notice of the agency
determination shall be provided in writing to the local government and
shall be published in the state register. The agency shall not grant a
petition unless it determines that the petition has met the requirements
of subdivision two of this section and that the local government has
established that the alternate method is consistent with and will effec-
tively carry out the objectives of the regulatory mandate; provided,
however, that no petition shall be approved which would result in the
contravention of any environmental, health or safety standard or would
reduce any benefits or rights accorded by law or rule to third parties.
In approving a petition, an agency may waive a statutory provision only
if it is specifically authorized by law to waive such provision. An
approval shall include a timetable for agency evaluation of the effec-
tiveness of the alternate method.
(b) Notwithstanding the provisions of paragraph (a) of this subdivi-
sion, upon receipt of an objection to a petition from the authorized
agent of any certified or recognized employee organization representing
employees who would be affected by implementation of the alternate meth-
od, the agency shall provide any such organizations with an opportunity
for a hearing. If an adjudicatory proceeding is requested, the petition
shall not be approved unless the agency determines by a preponderance of
the evidence that implementing the alternate method would not affect
such employees by contravening any environmental, health or safety stan-
dard, reducing any rights or benefits or violating the terms of any
negotiated agreement, and that all other requirements of this section
have been met. The provisions of this subdivision are in addition to and
shall not be construed to impair or modify any rights of such employees
under any other law, regulation or contract.
5. A LOCAL GOVERNMENT THAT OBJECTS TO A STATE AGENCY DETERMINATION TO
MODIFY OR DISAPPROVE ITS PETITION MAY APPEAL IN WRITING TO THE MANDATE
RELIEF COUNCIL, WHO, UPON REVIEW OF THE AGENCY'S FINDINGS AND DETERMI-
NATION, MAY APPROVE, MODIFY OR DISAPPROVE THE PETITION.
6. Nothing in this section shall require a local government to
commence or continue an alternate method of implementation if it deter-
mines in its sole discretion not to do so, except to the extent that a
local government has committed to commencing or continuing an alternate
method in a joint petition submitted pursuant to subdivision [three] TWO
of this section.
7. A state agency may rescind its approval of a petition [at any time
if it determines, based on the information reported pursuant to para-
graph (e) of subdivision two of this section or other information avail-
S. 5856 70 A. 8518
able to it, that the alternate method is not effectively carrying out
the objectives of the regulatory mandate or is being implemented in a
manner detrimental to the public interest] ONLY AFTER A HEARING,
PROVIDED, HOWEVER, THAT THE AGENCY MAY SUSPEND ITS APPROVAL OF A PETI-
TION PRIOR TO A HEARING IF IT FINDS THAT IMMEDIATE SUSPENSION IS NECES-
SARY TO ADDRESS AN IMMINENT THREAT TO HEALTH OR SAFETY. NOTICE OF A
HEARING MUST BE PROVIDED TO THE PETITIONER AT LEAST THIRTY DAYS PRIOR TO
THE HEARING AND MUST BE POSTED ON THE AGENCY'S WEBSITE. SUCH NOTICE MUST
STATE THE BASIS FOR THE AGENCY'S DECISION TO SEEK RESCISSION AND INFORM
THE LOCAL GOVERNMENT THAT IT MAY REQUEST INFORMATION RELIED UPON BY THE
AGENCY IN MAKING ITS DETERMINATION, WHICH INFORMATION MUST BE PROVIDED
TO THE LOCAL GOVERNMENT AT LEAST SEVEN DAYS IN ADVANCE OF THE HEARING.
AFTER SUCH HEARING, THE AGENCY MAY RESCIND ITS APPROVAL UPON A FINDING
THAT THE ALTERNATIVE METHOD OF IMPLEMENTATION IS NOT CONSISTENT WITH OR
DOES NOT EFFECTIVELY CARRY OUT THE OBJECTIVES OF THE REGULATORY MANDATE.
[7.] 8. Notwithstanding any other provision of law, implementation of
an alternate method approved by an agency pursuant to this section shall
be deemed to lawfully meet all requirements of the regulatory mandate.
An agency shall retain the authority to enforce compliance with the
alternate method in the same manner as it may enforce compliance with
the underlying rule. Any action on a petition by a state agency shall be
subject to review pursuant to article seventy-eight of the civil prac-
tice law and rules.
[8.] 9. In accordance with the timetable established pursuant to
subdivision [four] THREE of this section, the agency shall evaluate the
effectiveness of the alternate method in carrying out the objectives of
the regulatory mandate. The evaluation shall identify any savings or
other benefits, and any costs or other disadvantages, of implementing
the alternate method, and shall address the desirability of incorporat-
ing the alternate method into the rules of the agency. Notice of avail-
ability of the evaluation shall be published in the state register.
S 2. The executive law is amended by adding a new section 666 to read
as follows:
S 666. MANDATE RELIEF COUNCIL. 1. DEFINITIONS. A. "MANDATE" MEANS ANY
REQUIREMENT THAT A LOCAL GOVERNMENT PERFORM OR ADMINISTER ANY PROGRAM,
PROJECT OR ACTIVITY, REQUIRED OR IMPOSED BY A STATE LAW OR STATE AGENCY
THAT REQUIRES A HIGHER LEVEL OF SERVICE FOR AN EXISTING LOCAL GOVERNMENT
PROGRAM, PROJECT OR ACTIVITY.
B. "LOCAL GOVERNMENT" MEANS A COUNTY, CITY, TOWN, VILLAGE, SCHOOL
DISTRICT, OR SPECIAL DISTRICT.
C. "STATE AGENCY" OR "AGENCY" MEANS ANY STATE AGENCY, DEPARTMENT,
OFFICE, BOARD, BUREAU, DIVISION, COMMITTEE, COUNCIL OR OFFICE UNDER THE
DIRECTION OR CONTROL OF THE EXECUTIVE.
2. MANDATE RELIEF COUNCIL. THERE IS HEREBY CREATED WITHIN THE EXECU-
TIVE DEPARTMENT THE MANDATE RELIEF COUNCIL, WHICH SHALL BE COMPRISED OF
ELEVEN MEMBERS AS FOLLOWS: THE SECRETARY TO THE GOVERNOR, WHO SHALL
CHAIR THE COUNCIL, THE COUNSEL TO THE GOVERNOR, THE DIRECTOR OF THE
DIVISION OF THE BUDGET, THE SECRETARY OF STATE, AND THREE ADDITIONAL
MEMBERS TO BE APPOINTED BY THE GOVERNOR FROM AMONG HIS OR HER EXECUTIVE
CHAMBER STAFF, TWO MEMBERS TO BE APPOINTED BY THE TEMPORARY PRESIDENT OF
THE SENATE, AND TWO MEMBERS TO BE APPOINTED BY THE SPEAKER OF THE ASSEM-
BLY.
A. SIX MEMBERS OF THE COUNCIL, OR THEIR DESIGNEES IN THE CASE OF THE
DIRECTOR OF THE DIVISION OF THE BUDGET AND THE SECRETARY OF STATE, SHALL
CONSTITUTE A QUORUM.
S. 5856 71 A. 8518
B. THE COUNCIL SHALL MEET REGULARLY UPON THE CALL OF ITS CHAIR AND AS
FREQUENTLY AS ITS BUSINESS MAY REQUIRE. THE MEMBERS OF THE COUNCIL SHALL
SERVE WITHOUT COMPENSATION BUT SHALL RECEIVE REIMBURSEMENT FOR THEIR
REASONABLE AND NECESSARY EXPENSES.
C. THE COUNCIL SHALL, UPON REQUEST OF A LOCAL GOVERNMENT OR ONE OF THE
MEMBERS OF THE COUNCIL, IDENTIFY AND REVIEW MANDATES THAT CAN BE ELIMI-
NATED OR REFORMED, AND MAKE SUCH OTHER AND FURTHER INQUIRIES, REPORTS
AND RECOMMENDATIONS AS THE COUNCIL MAY DEEM NECESSARY AND PRUDENT TO
EFFECTUATE ITS MISSION OF MANDATE RELIEF. IN IDENTIFYING AND DETERMINING
WHETHER SUCH MANDATES ARE UNSOUND, UNDULY BURDENSOME OR COSTLY, THE
COUNCIL SHALL RECEIVE AND CONSIDER PUBLIC COMMENT ABOUT THEM AND SHALL
REVIEW THEM IN LIGHT OF COST-BENEFIT PRINCIPLES AND SUCH OTHER AND
FURTHER FACTORS AS THE COUNCIL SHALL DEEM NECESSARY AND PRUDENT. THE
COUNCIL SHALL NOT MAKE A REFERRAL TO THE GOVERNOR THAT A MANDATE BE
ELIMINATED OR REFORMED REGARDING ANY OF THE FOLLOWING MANDATES:
(I) THOSE WHICH ARE REQUIRED TO COMPLY WITH FEDERAL LAWS OR RULES OR
TO MEET ELIGIBILITY STANDARDS FOR FEDERAL ENTITLEMENTS;
(II) THOSE WHICH REAPPORTION THE COSTS OF ACTIVITIES BETWEEN BOARDS OF
EDUCATION, COUNTIES, AND MUNICIPALITIES;
(III) THOSE WHICH IMPLEMENT PROVISIONS OF THE STATE CONSTITUTION; AND
(IV) THOSE WHICH THE COUNCIL DETERMINES ARE NECESSARY FOR THE MAINTE-
NANCE OF THE PUBLIC HEALTH OR SAFETY OF THE PEOPLE OF NEW YORK STATE.
D. ALL VOTES OF THE COUNCIL, AND ALL DELIBERATIONS AND REPORTS OF ITS
PROCEEDINGS SHALL BE OPEN TO THE PUBLIC PURSUANT TO ARTICLE SEVEN OF THE
PUBLIC OFFICERS LAW.
3. COUNCIL ACTIONS ON REGULATORY MANDATES. UPON A DETERMINATION THAT A
MANDATE IN ANY REGULATION, RULE OR ORDER OF ANY STATE AGENCY HAS BEEN
IMPOSED UPON ANY LOCAL GOVERNMENT IN AN UNSOUND, UNDULY BURDENSOME OR
COSTLY MANNER SO AS TO NECESSITATE THAT IT BE ELIMINATED OR REFORMED,
THE COUNCIL SHALL HAVE THE POWER TO:
A. REFER A REQUEST BY A LOCAL GOVERNMENT FOR A REVIEW OF SUCH REGULA-
TORY MANDATE, FOR PETITION BY SUCH LOCAL GOVERNMENT FOR A WAIVER,
MODIFICATION OR REPEAL OF SUCH REGULATORY MANDATE PURSUANT TO SECTION
TWO HUNDRED FOUR-A OF THE STATE ADMINISTRATIVE PROCEDURE ACT. IN THE
EVENT THE COUNCIL VOTES TO MAKE SUCH REFERRAL ON BEHALF OF A LOCAL
GOVERNMENT, THE STATE AGENCY THAT IS CHARGED WITH REVIEWING THE PETITION
SHALL PROVIDE THE TECHNICAL ASSISTANCE AND SUPPORT FOR SUCH LOCAL
GOVERNMENT TO PROPERLY PREPARE AND SUBMIT SUCH PETITION. IN THE EVENT
THAT SUCH STATE AGENCY REVIEWING THE PETITION OF THE LOCAL GOVERNMENT
PURSUANT TO SECTION TWO HUNDRED FOUR-A OF THE STATE ADMINISTRATIVE
PROCEDURE ACT DOES NOT PROVIDE THE REMEDY SOUGHT BY SUCH LOCAL GOVERN-
MENT, THE COUNCIL MAY HEAR AND CONSIDER AN APPEAL OF SUCH DECISION AND
GRANT SUCH RELIEF AS IT DEEMS APPROPRIATE, INCLUDING THE MAKING OF A
REFERRAL TO THE GOVERNOR FOR THE WAIVING, MODIFYING OR REPEALING OF SUCH
REGULATORY MANDATE. THE COUNCIL SHALL ADOPT PROCEDURES BY WHICH IT
SHALL CONSIDER, DECIDE AND EFFECTUATE THE REMEDIES OF SUCH APPEALS
CONSISTENT WITH THIS SECTION.
B. UPON A TWO-THIRDS VOTE, REFER A REGULATION TO THE GOVERNOR FOR
REPEAL OR MODIFICATION, WHERE THE COUNCIL HAS PREVIOUSLY DETERMINED THAT
SUCH REGULATION IMPOSES UPON ANY LOCAL GOVERNMENT A MANDATE IN AN
UNSOUND, UNDULY BURDENSOME OR COSTLY MANNER, SO AS TO NECESSITATE THAT
IT BE ELIMINATED OR REFORMED. UPON RECEIPT OF SUCH REFERRAL BY THE
COUNCIL, THE GOVERNOR SHALL WITHIN SIXTY DAYS, DIRECT THE STATE AGENCY
RESPONSIBLE FOR THE PROMULGATION, REPEAL OR MODIFICATION OF SUCH REGU-
LATION TO EFFECTUATE SUCH REPEAL OR MODIFICATION OF THE REGULATION
PURSUANT TO THE PROCEDURES THAT SUCH AGENCY WOULD OTHERWISE BE REQUIRED
S. 5856 72 A. 8518
TO FOLLOW UNDER THE LAW, HAD SUCH AGENCY ON ITS OWN ACCORD SOUGHT TO
REPEAL OR MODIFY THE REGULATION.
4. COUNCIL ACTIONS ON STATUTORY MANDATES. THE COUNCIL MAY, UPON A VOTE
OF SEVEN MEMBERS, REFER A STATUTE TO THE GOVERNOR FOR REPEAL OR MODIFI-
CATION, WHERE THE COUNCIL HAS PREVIOUSLY DETERMINED THAT SUCH STATUTE
IMPOSES UPON ANY LOCAL GOVERNMENT A MANDATE IN AN UNSOUND, UNDULY
BURDENSOME OR COSTLY MANNER, SO AS TO NECESSITATE THAT IT BE ELIMINATED
OR REFORMED. UPON RECEIPT OF THE REFERRAL BY THE COUNCIL, THE GOVERNOR,
WITHIN SIXTY DAYS, SHALL HAVE PREPARED A GOVERNOR'S PROGRAM BILL, FOR
INTRODUCTION IN BOTH HOUSES OF THE LEGISLATURE, TO EFFECTUATE SUCH
REPEAL OR MODIFICATION OF THE STATUTE.
5. LOCAL GOVERNMENT REQUEST. A LOCAL GOVERNMENT MAY, BY RESOLUTION OF
ITS GOVERNING BODY, ASK THE COUNCIL TO REVIEW A SPECIFIC STATUTE, REGU-
LATION, RULE OR ORDER OF STATE GOVERNMENT TO DETERMINE WHETHER SUCH
STATUTE, REGULATION, RULE OR ORDER OF STATE GOVERNMENT IS AN UNFUNDED
MANDATE OR IS OTHERWISE UNSOUND, UNDULY BURDENSOME OR COSTLY SO AS TO
REQUIRE THAT IT BE ELIMINATED OR REFORMED. NO LOCAL GOVERNMENT MAY MAKE
MORE THAN THREE SUCH REQUESTS IN EACH CALENDAR YEAR. UPON SUCH REVIEW,
THE COUNCIL SHALL, BY MAJORITY VOTE, DETERMINE WHETHER SUCH MANDATE HAS
BEEN IMPOSED UPON SUCH LOCAL GOVERNMENT IN AN UNSOUND, UNDULY BURDENSOME
OR COSTLY MANNER, SO AS TO NECESSITATE THAT IT BE ELIMINATED OR
REFORMED. A DETERMINATION OF THE COUNCIL SHALL RESOLVE ANY DISPUTE
REGARDING WHETHER SUCH A STATUTE, REGULATION, RULE OR ORDER CONSTITUTES
SUCH AN UNFUNDED MANDATE, BUT SHALL NOT BE DEEMED A JUDICIAL DETERMI-
NATION UNDER THE LAW.
6. APPEALS. UPON AN APPEAL OF A PETITION PREVIOUSLY DECIDED BY A STATE
AGENCY PURSUANT TO SECTION TWO HUNDRED FOUR-A OF THE STATE ADMINISTRA-
TIVE PROCEDURE ACT, THE COUNCIL, UPON REQUEST OF THE LOCAL GOVERNMENT,
SHALL REVIEW THE STATE AGENCY'S DETERMINATION AND MAY AFFIRM, MODIFY OR
REJECT SUCH DETERMINATION. SUCH APPEAL SHALL NOT PRECLUDE OR LIMIT A
LOCAL GOVERNMENT OR ANY OTHER PARTY WITH STANDING FROM PURSUING ANY
RIGHT IT MAY HAVE PURSUANT TO A PROCEEDING INSTITUTED IN ACCORDANCE WITH
THE PROVISIONS OF ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND
RULES OR ANY OTHER STATUTE.
7. REPORTS. THE COUNCIL SHALL BY DECEMBER FIFTEENTH OF EACH YEAR
REPORT TO THE GOVERNOR AND LEGISLATURE REGARDING ITS ACTIVITIES, AND
REGARDING THE ISSUES, STATUTES, REGULATIONS, RULES AND ORDERS WHICH IT
REVIEWED, EXAMINED, PROPOSED, REFERRED, AND/OR CONSIDERED. SUCH REPORTS,
WHICH SHALL BE ADOPTED UPON A MAJORITY VOTE OF THE MEMBERS OF THE COUN-
CIL, OR THEIR DESIGNEES IN THE CASE OF THE DIRECTOR OF THE DIVISION OF
THE BUDGET OR THE SECRETARY OF STATE. ALL REPORTS OF THE COUNCIL SHALL
BE POSTED ON A PUBLICLY ACCESSIBLE WEBSITE.
8. ASSISTANCE OF OTHER AGENCIES. TO EFFECTUATE THE PURPOSES OF THIS
SECTION, ANY STATE AGENCY SHALL, AT THE REQUEST OF THE COUNCIL, PROVIDE
TO THE COUNCIL SUCH FACILITIES, ASSISTANCE AND DATA AS WILL ENABLE THE
COUNCIL TO PROPERLY CARRY OUT ITS RESPONSIBILITIES AND DUTIES.
S 3. This act shall take effect immediately; provided, however, that
section one of this act shall take effect on the thirtieth day after it
shall have become a law and shall expire January 1, 2015 or upon the
departure from office of the fifty-sixth governor whichever comes first,
provided however that section two of this act shall take effect January
15, 2012 and shall expire January 1, 2015 or upon the departure from
office of the fifty-sixth governor whichever comes first.
S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or subpart of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
S. 5856 73 A. 8518
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or subpart thereof directly involved in the controversy in which such
judgment shall have been rendered. It is hereby declared to be the
intent of the legislature that this act would have been enacted even if
such invalid provisions had not been included herein.
S 3. This act shall take effect immediately provided, however, that
the applicable effective date of Subparts A through H of this act shall
be as specifically set forth in the last section of such Subparts.
S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
S 3. This act shall take effect immediately provided, however, that
the applicable effective date of Parts A through C of this act shall be
as specifically set forth in the last section of such Parts; provided,
however that Part B of this act shall remain in full force and effect at
a minimum until and including June 15, 2015.
