S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 7340--A

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             March 31, 2009
                               ___________

Introduced by M. of A. BRODSKY, SPANO, LATIMER -- read once and referred
  to  the  Committee  on  Ways  and  Means -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

AN  ACT  to  amend the real property tax law, in relation to the "Middle
  Class STAR" rebate program; to amend the education law, in relation to
  the effect of mandates on school districts;  to  amend  the  education
  law,  in  relation  to  the  streamlining  of  planning  and reporting
  requirements for school districts and  boards  of  cooperative  educa-
  tional  services;  to  amend  the  tax  law, in relation to the school
  district property tax credit and establishing the maximum  residential
  school  property  tax,  personal income tax credit; to amend the state
  finance law, in relation to local property tax rebates; to  amend  the
  general  municipal law and the education law, in relation to requiring
  the state to fund certain programs mandated for municipal corporations
  and school districts; to amend  the  education  law,  in  relation  to
  student transportation; to repeal subdivision 32 of section 305 of the
  education law relating to a study of reporting requirements; to repeal
  section  805  of  the education law relating to special procedures for
  enforcement of the health education curriculum; to repeal subparagraph
  2 of paragraph d of subdivision 4 of section 1950 of the education law
  relating to prohibited aidable shared services; to repeal subparagraph
  2-a of paragraph d of subdivision 4 of section 1950 of  the  education
  law  relating  to demonstration of cost-effectiveness of instructional
  and  non-instructional  technology  acquired   by   component   school
  districts  through  a  board  of  cooperative educational services; to
  repeal paragraph d of subdivision 26-a of section 3602 of  the  educa-
  tion law relating to a plan for use of instructional computer technol-
  ogy  equipment;  and to repeal subdivision 13 of section 3602-e of the
  education law relating to annual reports on universal  prekindergarten
  programs


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10689-02-9

              

A. 7340--A                          2

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Legislative intent. State mandated programs, unlike local
service decisions, place local taxpayers  and  local  officials  in  the
position  of paying for services that they do not control. Increasingly,
however, the state has set local priorities and forced municipal  taxing
decisions  by  mandating services, programs, and standards. As a result,
many local governments and school districts  are  today  in  an  acutely
difficult fiscal situation.
  Thus,  in  order  to prevent irresponsible state actions which prevent
localities from making their own decisions,  and  which  force  unwanted
local  property  tax  increases,  it  is  necessary to ensure that state
mandates will not be forced on localities and  school  districts  unless
they are adequately funded.
  S  2.  The  real  property  tax law is amended by adding a new section
1306-b to read as follows:
  S 1306-B. "MIDDLE CLASS STAR" REBATE PROGRAM. 1. TAX REBATES. (A) IF A
PARCEL IS ENTITLED TO THE BASIC OR ENHANCED STAR EXEMPTION AUTHORIZED BY
SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER FOR  THE  TWO  THOUSAND
SIX--TWO  THOUSAND  SEVEN  SCHOOL YEAR AND EACH YEAR THEREAFTER, A LOCAL
PROPERTY TAX REBATE SHALL BE PROVIDED TO THE OWNER  OR  OWNERS  OF  SUCH
PARCEL AS SHOWN ON THE FINAL ASSESSMENT ROLL FOR SUCH YEAR, IN AN AMOUNT
COMPUTED  AS PRESCRIBED BY THIS SECTION AND SECTION ONE HUNDRED SEVENTY-
EIGHT OF THE TAX LAW.
  (B) IT SHALL BE THE RESPONSIBILITY OF THE STATE DEPARTMENT OF TAXATION
AND FINANCE TO ISSUE SUCH TAX REBATES  TO  SUCH  OWNERS  IN  THE  MANNER
PROVIDED  BY  SECTION  ONE HUNDRED SEVENTY-EIGHT OF THE TAX LAW. NOTHING
CONTAINED HEREIN SHALL BE CONSTRUED AS PERMITTING PARTIAL OR INSTALLMENT
PAYMENTS OF TAXES IN A JURISDICTION WHICH HAS NOT  AUTHORIZED  THE  SAME
PURSUANT TO LAW.
  2. PROCEDURE. (A) ON OR BEFORE AUGUST FIFTEENTH, TWO THOUSAND NINE AND
EACH YEAR THEREAFTER, THE EXECUTIVE DIRECTOR OF THE OFFICE OF REAL PROP-
ERTY  SERVICES,  OR HIS OR HER DESIGNEE, OR ON OR BEFORE JULY FIRST, TWO
THOUSAND NINE AND EACH YEAR THEREAFTER, IN THE CASE OF  A  CITY  WITH  A
POPULATION  OF  ONE MILLION OR MORE, THE COMMISSIONER OF FINANCE, OR HIS
OR HER DESIGNEE, SHALL PROVIDE  TO  THE  COMMISSIONER  OF  TAXATION  AND
FINANCE A REPORT IN A MUTUALLY AGREEABLE FORMAT CONCERNING THOSE PARCELS
WHICH  HAVE BEEN GRANTED AN EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED
TWENTY-FIVE OF THIS CHAPTER ON THE ASSESSMENT ROLLS USED TO GENERATE THE
SCHOOL TAX BILLS FOR THE TWO THOUSAND NINE--TWO THOUSAND TEN SCHOOL  TAX
YEAR  AND  FOR EACH YEAR THEREAFTER; PROVIDED HOWEVER THE INFORMATION TO
BE PROVIDED ON SUCH REPORT SHALL BE OBTAINED FROM THE  FINAL  ASSESSMENT
ROLL DATA FILES USED TO GENERATE THE TWO THOUSAND NINE--TWO THOUSAND TEN
SCHOOL  TAX  BILLS  AND EACH YEAR THEREAFTER, FILED WITH THE STATE BOARD
PURSUANT TO SECTION FIFTEEN HUNDRED NINETY OF THIS CHAPTER ON OR  BEFORE
JULY  THIRTY-FIRST  OF  SUCH YEAR. SUCH REPORT SHALL SET FORTH THE NAMES
AND MAILING ADDRESSES OF THE OWNERS OF SUCH PARCELS  AS  SHOWN  ON  SUCH
ASSESSMENT  ROLL  DATA FILES, THE IDENTIFICATION NUMBERS OF SUCH PARCELS
AS SHOWN ON SUCH ASSESSMENT ROLL DATA FILES, AND SUCH OTHER  INFORMATION
IN  THE  POSSESSION  OF  THE OFFICE OF REAL PROPERTY SERVICES, OR IN THE
CASE OF A CITY WITH A POPULATION OF ONE MILLION OR MORE, THE COMMISSION-
ER OF FINANCE, AS THE COMMISSIONER OF  TAXATION  AND  FINANCE  MAY  DEEM
NECESSARY  FOR  THE  EFFECTIVE ADMINISTRATION OF THIS PROGRAM, INCLUDING
INFORMATION REGARDING COOPERATIVE APARTMENT BUILDINGS  AND  MOBILE  HOME
PARKS  OR SIMILAR PROPERTY. IT SHALL BE THE RESPONSIBILITY OF THE ASSES-

A. 7340--A                          3

SOR OR ASSESSORS OF EACH ASSESSING UNIT TO ENSURE  THAT  THE  NAMES  AND
MAILING  ADDRESSES  OF SUCH OWNERS ARE ACCURATELY RECORDED ON SUCH ROLLS
AND FILES TO THE BEST OF HIS OR HER ABILITY, BASED UPON THE  INFORMATION
CONTAINED  IN  HIS  OR HER OFFICE. NOTHING CONTAINED IN THIS SUBDIVISION
SHALL BE CONSTRUED AS AFFECTING IN ANY WAY THE VALIDITY OR ENFORCEABILI-
TY OF A REAL PROPERTY TAX, OR THE APPLICABILITY OF INTEREST OR PENALTIES
WITH RESPECT THERETO, WHEN AN OWNER'S NAME OR MAILING  ADDRESS  HAS  NOT
BEEN ACCURATELY RECORDED.
  (B) (I) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDI-
VISION,  WHERE  AN  ASSESSING UNIT CONTAINS ONE OR MORE PROPERTIES WHICH
ARE RECEIVING SUCH EXEMPTION IN RELATION TO A PRIOR YEAR ASSESSMENT ROLL
PURSUANT TO PARAGRAPH (D) OF SUBDIVISION SIX  OF  SECTION  FOUR  HUNDRED
TWENTY-FIVE  OF  THIS  CHAPTER,  OR  CONTAINS  ONE  OR MORE PARCELS WITH
RESPECT TO WHICH SUCH EXEMPTION WAS DULY  ADDED  OR  REMOVED  AFTER  THE
FILING  OF THE FINAL ASSESSMENT ROLL PURSUANT TO THE PROVISIONS OF TITLE
THREE OF ARTICLE FIVE OF THIS  CHAPTER,  THE  OFFICE  OF  REAL  PROPERTY
SERVICES  MAY  REQUIRE  THE  ASSESSOR TO FILE WITH IT, ON OR BEFORE JULY
THIRTY-FIRST, TWO THOUSAND NINE AND EACH YEAR THEREAFTER, OR SUCH  LATER
DATE  AS SUCH OFFICE MAY SPECIFY, A SUPPLEMENTAL REPORT RELATING TO SUCH
PROPERTY OR PROPERTIES, SO THAT INFORMATION  PERTAINING  TO  THE  OWNERS
THEREOF  MAY BE INCLUDED IN THE REPORT TO BE MADE TO THE COMMISSIONER OF
TAXATION AND FINANCE PURSUANT TO THIS PARAGRAPH.  WHEN  ANY  INFORMATION
REQUIRED  BY  THIS  PARAGRAPH IS RECEIVED BY THE OFFICE OF REAL PROPERTY
SERVICES AFTER JULY THIRTY-FIRST, TWO THOUSAND NINE AND EACH YEAR THERE-
AFTER, SUCH INFORMATION SHALL BE TRANSMITTED AS SOON AS REASONABLY PRAC-
TICABLE TO THE COMMISSIONER OF TAXATION AND FINANCE FOR USE  IN  ISSUING
LOCAL PROPERTY TAX REBATES PURSUANT TO SECTION ONE HUNDRED SEVENTY-EIGHT
OF THE TAX LAW.
  (II)  WHERE  THE  OWNERSHIP  OF  A PARCEL THAT HAD BEEN ELIGIBLE FOR A
REBATE PURSUANT TO THIS SECTION CHANGES OR AN  EXEMPTION  UNDER  SECTION
FOUR  HUNDRED  TWENTY-FIVE  OF THIS CHAPTER HAS BEEN GRANTED OR REMOVED,
THE ASSESSOR SHALL NOTIFY THE STATE BOARD OF THE CHANGE  NO  LATER  THAN
AUGUST  FIRST  OF THE FOLLOWING YEAR. THE STATE BOARD SHALL FORWARD SUCH
REPORT TO THE DEPARTMENT OF TAXATION AND FINANCE IN A TIMELY MANNER  AND
IN A MUTUALLY-AGREEABLE FORMAT.
  3.  (A)  THE  STATE  BOARD SHALL CALCULATE THE REBATE BASE AS PROVIDED
HEREIN AND CERTIFY THE SAME TO THE DEPARTMENT OF TAXATION AND FINANCE NO
LATER THAN JULY FIRST, TWO THOUSAND NINE.
  (B) THREE REBATE BASES FOR THE BASIC STAR EXEMPTION  SHALL  BE  DETER-
MINED  FOR  EACH SEGMENT FOR THE TWO THOUSAND NINE--TWO THOUSAND TEN AND
SUBSEQUENT SCHOOL YEARS. SUCH REBATE BASES SHALL BE COMPUTED  BY  DETER-
MINING THE EXEMPT AMOUNT ESTABLISHED FOR THE SEGMENT FOR PURPOSES OF THE
BASIC  STAR  EXEMPTION  FOR  THE  TWO  THOUSAND EIGHT--TWO THOUSAND NINE
SCHOOL YEAR, MULTIPLYING THAT AMOUNT BY THE  SCHOOL  DISTRICT  TAX  RATE
APPLICABLE  WITHIN  THAT  SEGMENT  FOR  PURPOSES  OF  THE  TWO  THOUSAND
EIGHT--TWO  THOUSAND  NINE  SCHOOL  YEAR,  AS  REPORTED  BY  THE  SCHOOL
DISTRICT, AND THEN MULTIPLYING THE PRODUCT BY THE FOLLOWING:
  (I)  FOR  PURPOSES  OF  THE TWO THOUSAND NINE--TWO THOUSAND TEN SCHOOL
YEAR AND THE TWO THOUSAND TEN--TWO THOUSAND ELEVEN SCHOOL YEAR, BY SIXTY
PERCENT,  FORTY-FIVE  PERCENT  AND  THIRTY  PERCENT,  RESPECTIVELY.  THE
RESULTS  SHALL  BE  ASSOCIATED  WITH  THE FIRST, SECOND AND THIRD INCOME
BRACKETS, RESPECTIVELY, THAT ARE APPLICABLE WITHIN THAT SEGMENT.
  (II) FOR PURPOSES OF THE  TWO  THOUSAND  ELEVEN--TWO  THOUSAND  TWELVE
SCHOOL  YEAR,  BY  SEVENTY  PERCENT,  FIFTY-TWO AND ONE-HALF PERCENT AND
THIRTY-FIVE PERCENT, RESPECTIVELY. THE RESULTS SHALL BE ASSOCIATED  WITH

A. 7340--A                          4

THE  FIRST,  SECOND  AND  THIRD  INCOME BRACKETS, RESPECTIVELY, THAT ARE
APPLICABLE WITHIN THAT SEGMENT.
  (III)  FOR  PURPOSES OF THE TWO THOUSAND TWELVE--TWO THOUSAND THIRTEEN
AND SUBSEQUENT SCHOOL YEARS, BY EIGHTY PERCENT, SIXTY PERCENT AND  FORTY
PERCENT,  RESPECTIVELY.  THE RESULTS SHALL BE ASSOCIATED WITH THE FIRST,
SECOND AND THIRD INCOME  BRACKETS,  RESPECTIVELY,  THAT  ARE  APPLICABLE
WITHIN THAT SEGMENT.
  (IV) INCOME BRACKETS. (A) IN THE CITY OF NEW YORK, AND THE COUNTIES OF
NASSAU, SUFFOLK, ROCKLAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS, THE
FIRST  INCOME  BRACKET  SHALL  BE UP TO AND INCLUDING ONE HUNDRED TWENTY
THOUSAND DOLLARS; THE SECOND INCOME BRACKET SHALL BE  OVER  ONE  HUNDRED
TWENTY  THOUSAND  DOLLARS  UP  TO AND INCLUDING ONE HUNDRED SEVENTY-FIVE
THOUSAND DOLLARS; AND THE THIRD INCOME BRACKET SHALL BE OVER ONE HUNDRED
SEVENTY-FIVE THOUSAND DOLLARS UP TO  AND  INCLUDING  TWO  HUNDRED  FIFTY
THOUSAND DOLLARS.
  (B) IN ALL OTHER COUNTIES IN THE STATE, THE FIRST INCOME BRACKET SHALL
BE UP TO AND INCLUDING NINETY THOUSAND DOLLARS; THE SECOND INCOME BRACK-
ET  SHALL  BE  OVER  NINETY THOUSAND DOLLARS AND UP TO AND INCLUDING ONE
HUNDRED FIFTY THOUSAND DOLLARS; AND THE THIRD INCOME  BRACKET  SHALL  BE
OVER  ONE  HUNDRED  FIFTY  THOUSAND  DOLLARS AND UP TO AND INCLUDING TWO
HUNDRED FIFTY THOUSAND DOLLARS.
  (C) SUCH BRACKETS ARE SUBJECT TO INDEXING FOR  INFLATION  PURSUANT  TO
SUBDIVISION FIFTEEN OF SECTION ONE HUNDRED SEVENTY-EIGHT OF THE TAX LAW.
  (C)  ONE  REBATE  BASE FOR THE ENHANCED STAR EXEMPTION SHALL BE DETER-
MINED FOR EACH SEGMENT FOR THE TWO THOUSAND NINE--TWO THOUSAND  TEN  AND
SUBSEQUENT  SCHOOL  YEARS. SUCH REBATE BASES SHALL BE COMPUTED BY DETER-
MINING THE EXEMPT AMOUNT ESTABLISHED FOR THE SEGMENT FOR PURPOSES OF THE
ENHANCED STAR EXEMPTION FOR THE TWO THOUSAND  EIGHT--TWO  THOUSAND  NINE
SCHOOL  YEAR,  MULTIPLYING  THAT  AMOUNT BY THE SCHOOL DISTRICT TAX RATE
APPLICABLE WITHIN THAT SEGMENT FOR PURPOSES  OF  THAT  SCHOOL  YEAR,  AS
REPORTED BY THE SCHOOL DISTRICT, AND THEN MULTIPLYING THE PRODUCT BY THE
FOLLOWING:
  (I)  FOR  PURPOSES  OF  THE TWO THOUSAND NINE--TWO THOUSAND TEN SCHOOL
YEAR, BY TWENTY-FIVE PERCENT.
  (II) FOR PURPOSES OF THE TWO THOUSAND  TEN--TWO  THOUSAND  ELEVEN  AND
SUBSEQUENT SCHOOL YEARS, BY THIRTY-FIVE PERCENT.
  (D) FOR PURPOSES OF THIS SECTION, THE TERM "SEGMENT" MEANS THE PART OF
A CITY OR TOWN THAT IS WITHIN A SCHOOL DISTRICT.
  (E)  IN THE CASE OF SCHOOL DISTRICTS WITHIN SPECIAL ASSESSING UNITS AS
DEFINED IN SECTION EIGHTEEN HUNDRED ONE  OF  THIS  CHAPTER,  THE  SCHOOL
DISTRICT  TAX  RATE  TO  BE  USED FOR THIS PURPOSE SHALL BE THE TAX RATE
APPLICABLE TO CLASS ONE PROPERTIES AS DEFINED  IN  ARTICLE  EIGHTEEN  OF
THIS  CHAPTER,  AS REPORTED BY THE SCHOOL DISTRICT AND THE EXEMPT AMOUNT
SHALL BE ESTABLISHED FOR THE SEGMENT. IN THE CASE  OF  SCHOOL  DISTRICTS
WITHIN  APPROVED  ASSESSING UNITS AS DEFINED IN SECTION NINETEEN HUNDRED
ONE OF THIS CHAPTER WHICH HAVE ADOPTED THE PROVISIONS OF  SECTION  NINE-
TEEN  HUNDRED  THREE OF THIS CHAPTER, THE SCHOOL DISTRICT TAX RATE TO BE
USED FOR THIS PURPOSE SHALL BE THE TAX RATE APPLICABLE TO THE  HOMESTEAD
CLASS,  AS  DEFINED  IN ARTICLE NINETEEN OF THIS CHAPTER, AS REPORTED BY
THE SCHOOL DISTRICT.
  (F) WHERE THE PROVISIONS OF SUBPARAGRAPH  (IV)  OF  PARAGRAPH  (K)  OF
SUBDIVISION  TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER ARE
APPLICABLE, THE APPLICABLE REBATE  AMOUNT  SHALL  BE  ONE-THIRD  OF  THE
OTHERWISE  APPLICABLE REBATE AMOUNT SET FORTH IN PARAGRAPH (B) OR (C) OF
THIS SUBDIVISION. THE STATE BOARD SHALL CALCULATE  AND  CERTIFY  TO  THE
DEPARTMENT OF TAXATION AND FINANCE THE REBATE AMOUNTS APPLICABLE IN SUCH

A. 7340--A                          5

CASES,  ALONG  WITH  THE CERTIFICATION REQUIRED BY PARAGRAPH (A) OF THIS
SUBDIVISION.
  S  3.  The  education  law is amended by adding a new section 101-b to
read as follows:
  S 101-B. PAPERWORK REDUCTION. 1. IT SHALL BE THE DUTY OF  THE  COMMIS-
SIONER  TO REDUCE THE PAPERWORK BURDEN ON SCHOOL DISTRICTS AND BOARDS OF
COOPERATIVE EDUCATIONAL SERVICES BY ELIMINATING AND AVOIDING DUPLICATIVE
REPORTING REQUIREMENTS WHEREVER POSSIBLE, AND  BY  CONSOLIDATING  PLANS,
REPORTS  AND  APPLICATIONS,  WHERE POSSIBLE, WHILE FOCUSING PLANNING AND
REPORTING ON RESULTS RATHER THAN THE  PROCESSES  TO  ACHIEVE  THEM.  THE
COMMISSIONER  SHALL CONFORM STATE REPORTING AND PLANNING REQUIREMENTS TO
FEDERAL REQUIREMENTS, WHERE POSSIBLE, AND  SHALL  SEEK  FEDERAL  WAIVERS
WHERE NEEDED TO ALIGN STATE AND FEDERAL REQUIREMENTS.
  2.  THE  COMMISSIONER  SHALL  REDUCE  THE NUMBER OF PLANS, REPORTS AND
APPLICATIONS REQUIRED BY LAW, OF SCHOOL DISTRICTS AND BOARDS OF  COOPER-
ATIVE EDUCATIONAL SERVICES BY ESTABLISHING STREAMLINED AND UNIFIED ELEC-
TRONIC  DATA  COLLECTION  SYSTEMS  WHICH  ELIMINATE REDUNDANT REPORTING,
CONNECT PLANNING AND REPORTING, AND WHICH FOCUS ON COLLECTING  DATA  AND
REQUIRING PLANNING ONLY WHEN NECESSARY TO ASSURE FISCAL AND PROGRAMMATIC
ACCOUNTABILITY,  TO  FOSTER  CONTINUOUS SCHOOL IMPROVEMENT AND CLOSE THE
GAP BETWEEN ACTUAL  AND  DESIRED  STUDENT  ACHIEVEMENT,  AND  TO  ASSURE
SCHOOLS  PROVIDE A SAFE AND SECURE ENVIRONMENT AND/OR PROTECT THE HEALTH
AND SAFETY OF STUDENTS AND STAFF. SUCH  SYSTEMS  SHALL  MATCH  OVERSIGHT
WITH  THE  DEGREE OF RISK BY LINKING PLANNING AND REPORTING TO THE STATE
SYSTEM OF ACCOUNTABILITY REQUIRED UNDER FEDERAL LAW,  PROVIDING  FOR  AN
AUDIT  BASED ASSESSMENT OF RISK OF POOR STUDENT PERFORMANCE, POOR FISCAL
PERFORMANCE OR IMPROPER MANAGEMENT OR USE OF PUBLIC FUNDS.  THE  COMMIS-
SIONER  SHALL  ESTABLISH PARTNERSHIPS WITH SELECTED SCHOOL DISTRICTS AND
BOARDS OF COOPERATIVE EDUCATIONAL SERVICES  TO  PROMOTE  BETTER  USE  OF
REQUIRED PLANNING AND REPORTING AND SHALL ASSURE THAT REPORTING REQUIRE-
MENTS  INCLUDE  DATA  WHICH  CAN BE USED TO IDENTIFY BEST PRACTICES. THE
COMMISSIONER SHALL PROVIDE FOR THE SHARING OF EFFECTIVE  PLANNING  PRAC-
TICES  WITH  SCHOOL  DISTRICTS  AND,  TO  THE  EXTENT PRACTICABLE, SHALL
PROVIDE TECHNICAL ASSISTANCE ON THE USE OF DATA  FOR  PLANNING,  INVOLVE
BOARDS  OF  COOPERATIVE  EDUCATIONAL SERVICES AND INSTITUTIONS OF HIGHER
EDUCATION IN PROVIDING TRAINING ON THE USE OF DATA FOR  STRATEGIC  PLAN-
NING TO SUPERINTENDENTS OF SCHOOLS, SCHOOL BUSINESS OFFICIALS AND TEACH-
ERS, PROVIDE FOR TRAINING ON THE USE OF DATA IN PLANNING TO SCHOOL BOARD
MEMBERS AND INVOLVE RESEARCHERS IN DATA ANALYSIS AND EVALUATION.
  S  4. Section 215-b of the education law, as amended by chapter 301 of
the laws of 1996, is amended to read as follows:
  S 215-b. Annual report by commissioner to  governor  and  legislature.
The commissioner shall prepare and submit to the governor, the president
pro  tem  of  the  senate and the speaker of the assembly not later than
January first, nineteen hundred ninety-six and by the first day of Janu-
ary in each year  thereafter,  a  report  detailing  the  financial  and
statistical outcomes of boards of cooperative educational services which
shall[,  at  minimum,]  set  forth  with respect to the preceding school
year[: tuition costs for selected  programs;  standard  per  pupil  cost
information for selected services as determined by the commissioner; and
aggregate expenditure data for the following categories: administration,
instructional  services,  career  education, special education, rent and
facilities and other services; and  such  other  information  as  deemed
appropriate]  INFORMATION  NECESSARY  TO  ASSURE  THE  ACCOUNTABILITY OF
BOARDS OF COOPERATIVE EDUCATIONAL SERVICES FOR ITS FISCAL  AND  PROGRAM-
MATIC  RESOURCES,  AS  SET  FORTH IN REGULATIONS TO BE PRESCRIBED by the

A. 7340--A                          6

commissioner. The format for such report shall be developed in consulta-
tion with school district officials and the director of the budget. Such
report will include changes from the year prior to the report  year  for
each such item for all boards of cooperative educational services.  Such
report  shall be distributed to all school districts and boards of coop-
erative educational services and shall be made available  to  all  other
interested parties upon request.
  S 5. Subdivision 32 of section 305 of the education law is REPEALED.
  S  6.  The  education  law is amended by adding a new section 308-a to
read as follows:
  S 308-A. SPECIAL PROVISIONS; MANDATES. 1. AS  USED  IN  THIS  SECTION,
"MANDATE"  MEANS  (A)  ANY STATE LAW, RULE OR REGULATION WHICH CREATES A
NEW PROGRAM OR REQUIRES A  HIGHER  LEVEL  OF  SERVICE  FOR  AN  EXISTING
PROGRAM  WHICH  A  SCHOOL  DISTRICT, ORGANIZED EITHER BY SPECIAL LAWS OR
PURSUANT TO THE PROVISIONS OF A GENERAL LAW, IS REQUIRED TO PROVIDE, OR
  (B) ANY GENERAL LAW WHICH GRANTS  A  NEW  PROPERTY  TAX  EXEMPTION  OR
INCREASES  AN  EXISTING  PROPERTY  TAX  EXEMPTION  WHICH ANY SUCH SCHOOL
DISTRICT IS REQUIRED TO PROVIDE.
  2. IN THE EVENT THAT A MANDATE WHICH IMPOSES  A  COST  UPON  A  SCHOOL
DISTRICT  IS CREATED AFTER THE ADOPTION OF A SCHOOL BUDGET, SUCH MANDATE
SHALL NOT BE IMPLEMENTED UNTIL THE FOLLOWING YEAR FOR WHICH SUCH  SCHOOL
BUDGET WAS ADOPTED.
  3. NOTWITHSTANDING SUBDIVISION TWO OF THIS SECTION, SUCH A MANDATE CAN
BE IMPOSED IF:
  (A) THE MANDATE IS PROVIDED AT THE OPTION OF THE SCHOOL DISTRICT UNDER
A LAW, REGULATION, RULE OR ORDER THAT IS PERMISSIVE RATHER THAN MANDATO-
RY;
  (B)  THE MANDATE IS REQUIRED BY, OR ARISES FROM, AN EXECUTIVE ORDER OF
THE GOVERNOR EXERCISING HIS OR HER EMERGENCY POWERS; OR
  (C) THE MANDATE IS REQUIRED BY STATUTE OR EXECUTIVE ORDER THAT  IMPLE-
MENTS A FEDERAL LAW OR REGULATION AND RESULTS FROM COSTS MANDATED BY THE
FEDERAL GOVERNMENT TO BE BORNE AT THE LOCAL LEVEL, UNLESS THE STATUTE OR
EXECUTIVE  ORDER  IMPOSES  COSTS  WHICH EXCEED THE COSTS MANDATED BY THE
FEDERAL GOVERNMENT.
  4. THE OFFICE OF THE STATE COMPTROLLER SHALL MAKE A FISCAL ANALYSIS OF
THE AGGREGATE IMPACT OF NEW STATE LEGISLATION AND  RULEMAKING  ON  LOCAL
GOVERNMENTS  AND SCHOOL DISTRICTS AND SHALL MAKE SUCH INFORMATION AVAIL-
ABLE TO THE PUBLIC.
  S 7. Subdivisions 1 and 3 of section 416 of the education law,  subdi-
vision 1 as amended by chapter 687 of the laws of 1949 and subdivision 3
as  amended  by  chapter 171 of the laws of 1996, are amended to read as
follows:
  1. A majority of the voters of any school district, present and voting
at any annual or special district meeting, duly convened, may  authorize
such  acts  and  vote such taxes as they shall deem expedient for making
additions, alterations, repairs or improvements, to the sites or  build-
ings  belonging  to  the  district,  or  for  altering and equipping for
library use any former schoolhouse belonging to the district, or for the
purchase of other sites or buildings, or for a change of sites,  or  for
the  purchase  of  land  and buildings for agricultural, athletic, play-
ground or social center purposes, or for the erection of new  buildings,
or  for  building a bus garage, or for [buying apparatus, implements, or
fixtures, or for  paying  the  wages  of  teachers,  and  the  necessary
expenses  of  the  school, or for the purpose of paying any judgment, or
for] the payment or refunding of an outstanding bonded indebtedness[, or

A. 7340--A                          7

for such other purpose relating to the support and welfare of the school
as they may, by resolution, approve].
  3.  No  addition to or change of site or purchase of a new site or tax
for the purchase of any new site or structure, or for grading or improv-
ing a school site, or for the purchase of an addition to the site of any
schoolhouse, or for the purchase of lands  and  buildings  for  agricul-
tural,  athletic,  playground or social center purposes, or for building
any new schoolhouse or for the erection of an addition  to  any  school-
house  already  built, or for the payment or refunding of an outstanding
bonded indebtedness, shall be voted at any such meeting in a union  free
school  district or a city school district [which conducts annual budget
votes in accordance with article forty-one of this chapter  pursuant  to
section  twenty-six  hundred  one-a of this chapter] IN A CITY WITH LESS
THAN ONE HUNDRED TWENTY-FIVE THOUSAND INHABITANTS, unless  a  notice  by
the board of education stating that such tax will be proposed, and spec-
ifying  the object thereof and the amount to be expended therefor, shall
have been given in the manner provided herein for the notice of an annu-
al meeting. In a common school district the notice of a special  meeting
to authorize any of the improvements enumerated in this section shall be
given as provided in section two thousand six. The board of education of
a  union  free school district or a city school district [which conducts
annual budget votes in accordance with article forty-one of this chapter
pursuant to section twenty-six hundred one-a of this chapter] IN A  CITY
WITH  LESS THAN ONE HUNDRED TWENTY-FIVE THOUSAND INHABITANTS, may deter-
mine that the vote upon any question to be submitted at a special  meet-
ing  as  provided  in  this section shall be by ballot, in which case it
shall state in the notice of such special meeting the hours during which
the polls shall be kept open. Printed ballots may  be  prepared  by  the
board  in  advance  of  the  meeting and the proposition or propositions
called for in the notice of the meeting may be submitted in substantial-
ly the same manner as  propositions  to  be  voted  upon  at  a  general
election.
  S 8. Section 805 of the education law is REPEALED.
  S  9. Subdivision 2 of section 806 of the education law, as amended by
chapter 946 of the laws of 1973, is amended to read as follows:
  2. The regents shall determine the subjects to  be  included  in  such
courses  of instruction in highway safety and traffic regulation includ-
ing bicycle safety, and the period of instruction in each of the  grades
in such subjects.  [They shall adopt rules providing for attendance upon
such instruction and for such other matters as are required for carrying
into  effect  the  teaching  of the courses of instruction prescribed by
this section.  The commissioner of education shall  be  responsible  for
the  enforcement  of  such  section  and shall cause to be inspected and
supervise the instruction to be given in such subjects. The commissioner
may, in his discretion, cause all or a  portion  of  the  public  school
money to be apportioned to a district or city to be withheld for failure
of  the  school authorities of such district or city to provide instruc-
tion in such courses and to compel attendance upon such instruction,  as
herein prescribed, and for a noncompliance with the rules of the regents
adopted as herein provided.]
  S  10.  The education law is amended by adding a new section 1527-a to
read as follows:
  S 1527-A. FUNDING OF MANDATES IMPOSED ON SCHOOL DISTRICTS. 1.    DEFI-
NITIONS.  AS  USED  IN  THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS UNLESS THE CONTEXT SHALL OTHERWISE REQUIRE:
  (A) "MANDATE" MEANS:

A. 7340--A                          8

  (I) ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM  OR
REQUIRES  A  HIGHER  LEVEL  OF  SERVICE  FOR AN EXISTING PROGRAM WHICH A
SCHOOL DISTRICT ORGANIZED EITHER BY SPECIAL  LAWS  OR  PURSUANT  TO  THE
PROVISIONS OF A GENERAL LAW, IS REQUIRED TO PROVIDE; OR
  (II)  ANY  GENERAL  LAW  WHICH  GRANTS A NEW PROPERTY TAX EXEMPTION OR
INCREASES AN EXISTING PROPERTY  TAX  EXEMPTION  WHICH  ANY  SUCH  SCHOOL
DISTRICT IS REQUIRED TO PROVIDE.
  (B) "UNFUNDED MANDATE" SHALL MEAN:
  (I)  ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM OR
REQUIRES A HIGHER LEVEL OF SERVICE FOR AN  EXISTING  PROGRAM  WHICH  ANY
SUCH  SCHOOL  DISTRICT IS REQUIRED TO PROVIDE AND WHICH RESULTS IN A NET
ADDITIONAL COST TO SUCH SCHOOL DISTRICT;
  (II) ANY ALTERATION IN FUNDING PROVIDED TO ANY  SUCH  SCHOOL  DISTRICT
FOR THE PURPOSE OF DEFRAYING THE COSTS OF A PROGRAM WHICH IT IS REQUIRED
TO  PROVIDE,  THEREBY  RESULTING IN A NET ADDITIONAL COST TO SUCH SCHOOL
DISTRICT; OR
  (III) ANY GENERAL LAW WHICH GRANTS A NEW  PROPERTY  TAX  EXEMPTION  OR
INCREASES  AN  EXISTING  PROPERTY  TAX  EXEMPTION  WHICH ANY SUCH SCHOOL
DISTRICT IS REQUIRED TO PROVIDE, THEREBY RESULTING IN A  NET  ADDITIONAL
COST TO SUCH SCHOOL DISTRICT.
  (C)  "NET  ADDITIONAL COST" MEANS THE COST OR COSTS INCURRED OR ANTIC-
IPATED TO BE INCURRED WITHIN A ONE YEAR PERIOD BY A SCHOOL  DISTRICT  IN
PERFORMING  OR  ADMINISTERING  A MANDATE AFTER SUBTRACTING THEREFROM ANY
REVENUES RECEIVED OR RECEIVABLE BY THE SCHOOL DISTRICT ON ACCOUNT OF THE
MANDATED PROGRAM OR SERVICE, INCLUDING BUT NOT LIMITED TO:
  (I) FEES CHARGED TO THE RECIPIENTS OF THE MANDATED PROGRAM OR SERVICE;
  (II) STATE OR  FEDERAL  AID  PAID  SPECIFICALLY  OR  CATEGORICALLY  IN
CONNECTION WITH THE PROGRAM OR SERVICE; AND
  (III)  AN  OFFSETTING  SAVINGS RESULTING FROM THE DIMINUTION OR ELIMI-
NATION OF ANY OTHER PROGRAM OR  SERVICE  DIRECTLY  ATTRIBUTABLE  TO  THE
PERFORMANCE OR ADMINISTRATION OF THE MANDATED PROGRAM.
  2. FUNDING OF SCHOOL DISTRICT MANDATES.  (A) NOTWITHSTANDING ANY OTHER
PROVISION  OF LAW, NO UNFUNDED MANDATE SHALL BE ENACTED WHICH CREATES AN
ANNUAL NET ADDITIONAL COST TO ANY SCHOOL DISTRICT IN EXCESS OF TEN THOU-
SAND DOLLARS OR AN AGGREGATE ANNUAL NET ADDITIONAL COST  TO  ALL  SCHOOL
DISTRICTS IN EXCESS OF ONE MILLION DOLLARS.
  (B)  THERE  SHALL BE NO NEW LEGISLATIVE OR REGULATORY MANDATES IMPOSED
ON SCHOOL DISTRICTS WITHOUT A COMPLETE ACCOUNTING OF THE EXPECTED FISCAL
IMPACT ON SUCH SCHOOL DISTRICTS, AND SUCH ACCOUNTING MUST  INCLUDE  FULL
DOCUMENTATION,  AN  OPPORTUNITY FOR INPUT FROM AFFECTED SCHOOL DISTRICTS
AND PROPOSED REVENUE SOURCES WITH WHICH TO FUND THE NEW MANDATE.
  3. EXEMPTIONS TO THE FUNDING OF SCHOOL DISTRICT MANDATES  REQUIREMENT.
(A) THE STATE SHALL NOT BE REQUIRED TO FUND ANY NEW OR EXPANDED PROGRAMS
FOR SCHOOL DISTRICTS IF:
  (I) THE MANDATE IS REQUIRED BY A COURT ORDER OR JUDGMENT;
  (II)  THE  MANDATE  IS  PROVIDED  AT THE OPTION OF THE SCHOOL DISTRICT
UNDER A LAW, REGULATION, RULE, OR ORDER THAT IS PERMISSIVE  RATHER  THAN
MANDATORY;
  (III)  THE  MANDATE  RESULTS  FROM  THE PASSAGE OF A HOME RULE MESSAGE
WHEREBY A SCHOOL DISTRICT REQUESTS AUTHORITY TO IMPLEMENT THE PROGRAM OR
SERVICE SPECIFIED IN THE STATUTE, AND THE  STATUTE  IMPOSES  COSTS  ONLY
UPON  THAT  SCHOOL  DISTRICT  WHICH REQUESTS THE AUTHORITY TO IMPOSE THE
PROGRAM OR SERVICE;
  (IV) THE MANDATE IS REQUIRED BY, OR ARISES FROM, AN EXECUTIVE ORDER OF
THE GOVERNOR EXERCISING HIS OR HER EMERGENCY POWERS; OR

A. 7340--A                          9

  (V) THE MANDATE IS REQUIRED BY STATUTE OR EXECUTIVE ORDER THAT  IMPLE-
MENTS A FEDERAL LAW OR REGULATION AND RESULTS FROM COSTS MANDATED BY THE
FEDERAL GOVERNMENT TO BE BORNE AT THE LOCAL LEVEL, UNLESS THE STATUTE OR
EXECUTIVE  ORDER RESULTS IN COSTS WHICH EXCEED THE COSTS MANDATED BY THE
FEDERAL GOVERNMENT.
  (B)  EACH  ACT ESTABLISHING A MANDATE SHALL PROVIDE THAT THE EFFECTIVE
DATE OF ANY SUCH MANDATE IMPOSED ON SCHOOL DISTRICTS SHALL BE CONSISTENT
WITH THE NEEDS OF THE STATE AND SCHOOL DISTRICTS TO PLAN  IMPLEMENTATION
THEREOF, AND ALSO CONSISTENT WITH THE AVAILABILITY OF REQUIRED FUNDS.
  S  11.  Subparagraph 1 of paragraph b of subdivision 4 of section 1950
of the education law, as amended by chapter 474 of the laws of 1996,  is
amended to read as follows:
  (1)  Prepare,  prior to the annual meeting of members of the boards of
education and school trustees, held as provided in paragraph o  of  this
subdivision, a tentative budget of expenditures for the program costs, a
tentative  budget  for  capital  costs,  and  a tentative budget for the
administration costs of the board of cooperative  educational  services.
Such  budgets  shall include the proposed budget for the upcoming school
year, the previous school year's actual costs  and  the  current  school
year's  projected  costs  for  each object of expenditure. Such program,
capital and administrative budgets shall  be  separately  delineated  in
accordance  with  the  definition of program, capital and administrative
costs which shall be promulgated by the commissioner after  consultation
with  school district officials and the director of the budget. Personal
service costs for each budget shall  include  the  number  of  full-time
equivalent  positions funded and total salary and, except as noted here-
in, fringe benefit costs for such positions  by  program.  Each  program
budget  shall  also  include  the local and statewide unit costs of such
programs and services proposed for the upcoming school year, such actual
unit costs for the previous school year, and the current  school  year's
projected  unit costs, all established in accordance with paragraph d of
this subdivision. The capital budget shall include facility construction
and lease expenditures authorized pursuant to paragraphs p, t and  u  of
this  subdivision, payments for the repayment of indebtedness related to
capital projects, payments for the acquisition or construction of facil-
ities, sites or additions, provided that such  budget  shall  contain  a
rental,  operations  and maintenance section that will include base rent
costs, total rent costs, operations and maintenance  charges,  cost  per
square  foot for each facility rented or leased by such board of cooper-
ative educational services, and any and all expenditures associated with
custodial salaries and benefits, service contracts, supplies, utilities,
maintenance and repairs for such facilities, and that such budget  shall
include  the  annual  debt  service  and  total  debt for all facilities
financed by bonds or notes of the component districts, annual rental and
lease payments and total rental and lease costs for all facilities rent-
ed by such board; such capital budget shall  also  include  expenditures
resulting  from court judgments and orders from administrative bodies or
officers, and, to the extent a board's administrative  budget  has  been
adopted,  one-time costs incurred in the first year in which an employee
retires. The administrative budget shall include, but need not be limit-
ed to, office and central administrative  expenses,  traveling  expenses
and  salaries  and  benefits of supervisors and administrative personnel
necessary to carry out the central administrative duties of the supervi-
sory district, any and all expenditures associated with the  board,  the
office  of  district  superintendent,  general  administration,  central
support services, planning, and  all  other  administrative  activities.

A. 7340--A                         10

Such administrative budget shall also specify the amount of supplementa-
ry  salary  and  benefits,  if any, which the board determines should be
paid to the district superintendent  of  schools  and  the  board  shall
append  to such budget a detailed statement of the total compensation to
be paid the district superintendent of schools by the board, including a
delineation of the salary, annualized cost of benefits and  any  in-kind
or  other  form  of  remuneration  to be paid, plus, commencing with the
presentation of the budget for the nineteen hundred  ninety-seven--nine-
ty-eight  school  year,  [a  list  of  items  of  expense  eligible  for
reimbursement on expense accounts in the  ensuing  school  year  and]  a
statement  of the amount of expenses paid to the district superintendent
of schools in the prior year for purposes of carrying  out  his  or  her
official duties.
  S  12.  Subparagraph 5 of paragraph b of subdivision 4 of section 1950
of the education law, as amended by chapter 602 of the laws of 1994,  is
amended to read as follows:
  (5)  The  trustees  or  board  of  education  of each component school
district of the board of cooperative educational services shall adopt  a
public  resolution  which  shall  approve  or  disapprove such tentative
administrative budget at a regular or special meeting to be held  within
the  component  district  on the date designated pursuant to subdivision
two-a of this section as the date for election of members of  the  board
of  cooperative  educational  services,  or  in the case of the board of
education of a central high school district on the regular business  day
next following such designated date.
  If the resolutions adopted by the trustees or boards of education of a
majority  of  the component school districts of the board of cooperative
educational services actually voting approve the  tentative  administra-
tive budget, the board of cooperative educational services may adopt the
tentative  administrative  budget without modification. If a majority of
the component school districts actually voting fail to adopt resolutions
approving such tentative administrative budget,  or  if  the  number  of
component  school  districts  approving  the budget equals the number of
school districts disapproving  the  budget,  the  board  of  cooperative
educational  services  shall prepare and adopt a contingency administra-
tive budget which shall not exceed  the  amount  of  the  administrative
budget of the board of cooperative educational services for the previous
school  year except to accommodate expenditure increases attributable to
supplemental retirement allowances  payable  pursuant  to  section  five
hundred  thirty-two  of  this  chapter  and section seventy-eight of the
retirement and social security law.  [For purposes of development  of  a
budget  for  the  nineteen hundred ninety-four--ninety-five school year,
each board  of  cooperative  educational  services  shall  separate  its
program, capital and administrative costs for the nineteen hundred nine-
ty-three--ninety-four  school  year  in  the  manner  prescribed  by the
commissioner, and] THE BOARD OF COOPERATIVE EDUCATIONAL  SERVICES  shall
NOT  BE  REQUIRED  TO submit [the resulting] ITS separate administrative
budget to the commissioner for approval. [Upon approval of  the  commis-
sioner, such separate administrative budget shall be deemed the adminis-
trative  budget of the board of cooperative educational services for the
nineteen hundred ninety-three--ninety-four school year.]
  S 13. Paragraph c of subdivision 4 of section 1950  of  the  education
law,  as  amended by chapter 301 of the laws of 1996, is amended to read
as follows:
  c. Make or cause to be made surveys to determine the need for  cooper-
ative  educational  services in the supervisory district and present the

A. 7340--A                         11

findings of their surveys to local school  authorities.  Each  board  of
cooperative  educational services shall prepare long range program plans
to meet the projected need for such cooperative educational services  in
the  supervisory district for the next five years as may be specified by
the commissioner, and shall [submit] KEEP  ON  FILE  AND  AVAILABLE  FOR
PUBLIC  INSPECTION  AND REVIEW BY THE COMMISSIONER such plans and there-
after annual revisions of such plans [to the commissioner] on or  before
the  first  day of December of each year, [except that special education
and career education program plans, in a form specified by  the  commis-
sioner, shall be submitted every two years, no later than the date spec-
ified  by  the  commissioner,  and  revised annually] PROVIDED THAT SUCH
PLANS MAY BE  INCORPORATED  INTO  A  BOARD  OF  COOPERATIVE  EDUCATIONAL
SERVICES DISTRICT-WIDE COMPREHENSIVE PLAN.
  S 14. Subparagraph 2-a of paragraph d of subdivision 4 of section 1950
of the education law is REPEALED.
  S 15. Subparagraphs 3 and 4 of paragraph d of subdivision 4 of section
1950  of  the  education  law,  as amended by chapter 474 of the laws of
1996, are amended to read as follows:
  (3) Requests for shared services;  operating  plan;  required  notice.
Requests  for  such  shared  services shall be filed by component school
districts with the board of cooperative educational services  not  later
than the first day of February of each year, provided that such requests
shall  not  be  binding upon the component school district. The board of
cooperative educational services shall submit its proposed annual  oper-
ating  plan  for  the ensuing school year to the department for approval
not later than the fifteenth day of February of each  year.  Such  board
shall,  through  its  executive  officer,  notify  each component school
district on or before the tenth day of  March  concerning  the  services
[which] THAT have been approved by the commissioner to be made available
for  the  ensuing  school  year.  Such  notice shall set forth the local
uniform cost of each such service,  based  on  (i)  anticipated  partic-
ipation in the ensuing school year, or (ii) participation in the current
year,  or  (iii)  a two or three year average including participation in
the current year, which unit cost shall be the same for all  participat-
ing  component  districts  and shall be based upon a uniform methodology
approved annually by at least three-quarters of the participating compo-
nent school districts after consultation by local school officials  with
their  respective  boards[;  provided,  however, such unit cost shall be
subject to final adjustment for programs for students with  disabilities
based  on  actual  participation  in  accordance with regulations of the
commissioner.  Notwithstanding the determination of  the  local  uniform
unit  cost  methodology selected in accordance with this paragraph, each
board of cooperative education services shall  annually  report  to  the
commissioner the budgeted unit cost and, when available, the actual unit
cost  of  such  programs and services, in accordance with both the local
uniform unit cost methodology and a statewide uniform unit cost  method-
ology  prescribed  by the commissioner by regulation, where the budgeted
statewide unit cost shall be based on the anticipated  participation  in
the  ensuing  year  and the actual statewide unit cost shall be based on
actual participation through the end of each year].
  (4) Contracts for shared services; allocation of costs. Each component
school district shall on or before the first day of May  following  such
notification notify the board of cooperative educational services of its
intention  to  participate or not to participate in such shared services
and the specific services which such district elects  to  utilize.  Each
participating  component  school  district  shall be required to pay the

A. 7340--A                         12

board of cooperative educational services for the cost of  the  services
set  forth in such notification, except for adjustments caused by subse-
quent unanticipated changes in the district's enrollment. The  board  of
cooperative  educational  services  shall  enter into contracts with its
component school districts for such requested services. A copy  of  each
executed contract for such purpose shall be [filed with the commissioner
by]  ON  FILE  WITH  the  board  of cooperative educational services AND
AVAILABLE FOR PUBLIC INSPECTION UPON REQUEST on or prior  to  the  first
day  of August of each year. Notwithstanding the provisions of paragraph
b of this subdivision, any component  school  district  which  does  not
elect  to  participate in any such specific cooperative services author-
ized under this paragraph shall not be required to pay any share of  the
moneys provided in the budget as salaries of teachers or other personnel
employed  in providing such service, for equipment and supplies for such
service or for transportation of pupils to and from the place where such
service is maintained. Provided, further, that a  board  of  cooperative
educational services may allocate the cost of such services to component
school districts in accordance with terms agreed upon between such board
and  three-quarters  of  the  boards  of education and trustees of local
school districts participating in the service.
  S 16. Paragraph aa of subdivision 4 of section 1950 of  the  education
law,  as added by chapter 595 of the laws of 1978, is amended to read as
follows:
  aa. Notwithstanding any other provision of law, a board of cooperative
educational services may[,  with  the  prior  written  approval  of  the
commissioner,] contract to accept from a leasing company which has qual-
ified as lowest bidder pursuant to the provisions of the general munici-
pal  law a sum sufficient to purchase data processing equipment from the
manufacturer thereof, pay such sum to the manufacturer  of  said  equip-
ment, receive the equipment and title thereto and convey the same to the
leasing  company  with  a  simultaneous lease of the equipment from such
leasing company to the board of cooperative educational services  for  a
specified  period of years. Before any such agreement shall be executed,
the board of cooperative educational services shall adopt  a  resolution
determining that such agreement is in the best financial interest of the
board. Such lease may be renewed for a further specified period of years
[with the prior approval of the commissioner of education].
  S  17.  Paragraph kk of subdivision 4 of section 1950 of the education
law, as added by section 13 of part A of chapter  436  of  the  laws  of
1997, is amended to read as follows:
  kk.  For  the  nineteen hundred ninety-seven--ninety-eight school year
and thereafter, the board of cooperative  educational  services  (BOCES)
shall  prepare  a  BOCES  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  administrative  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 board  of
cooperative  educational  services,  on a school by school or program by
program basis, and measures of the fiscal performance of the supervisory
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 boards of cooperative  educational  services.
Such  report  card  shall include[, at a minimum, any information of the
board of cooperative educational services  regarding  pupil  performance

A. 7340--A                         13

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.
  S  18.  Subdivision 2 of section 2201 of the education law, as amended
by chapter 295 of the laws of 1993, is amended to read as follows:
  2. Whenever a vacancy hereafter  occurs  in  the  office  of  district
superintendent  of  schools  in any supervisory district or whenever the
commissioner receives a letter of resignation  from  a  district  super-
intendent,  the  commissioner [shall] MAY survey the field in the county
where the vacancy occurred, and if it shall find that the continuance of
the number of supervisory districts then existing is no longer necessary
to serve adequately the educational interests of the county  he  or  she
shall  be authorized to conduct a study to examine the possible reorgan-
ization of such supervisory district if no such study has been conducted
within five years.
  S 19. Subdivision 5 of section 2802 of the education law, as added  by
chapter 181 of the laws of 2000, is amended to read as follows:
  5.  By  [January]  APRIL  first  of  each year, the commissioner shall
report to the governor, the legislature and the regents  concerning  the
prevalence  of violence and disruptive incidents in the public schools[,
and the effectiveness of school programs undertaken to  reduce  violence
and  assure  the  safety and security of students and school personnel].
The report shall summarize the information available from  the  incident
reporting  system,  and  [identify  specifically  the schools and school
districts with the least and greatest incidence of violent  and  disrup-
tive  incidents,  and  the least and most improvement since the previous
year or years] COMPARE THE INCIDENCE OF VIOLENT AND DISRUPTIVE INCIDENTS
OF SCHOOLS AND SCHOOL DISTRICTS AND BOARDS WITH OTHER SCHOOLS AND SCHOOL
DISTRICTS AND BOARDS BASED ON SIMILARITY IN SIZE AND  GRADE  LEVELS  AND
OTHER  CHARACTERISTICS,  INCLUDING STUDENT NEED AND RESOURCES, AS DETER-
MINED BY THE COMMISSIONER. [The report shall also, to the extent  possi-
ble,  relate  the  results available from the incident reporting system,
together with such other analysis and information  as  the  commissioner
determines is appropriate, to the effectiveness of school violence meas-
ures undertaken by participating schools and school districts, including
the  school  codes  and school safety plans required by sections twenty-
eight hundred one and twenty-eight hundred one-a of this article.]
  S 20. Paragraph b of subdivision 8 of section 3602  of  the  education
law,  as  amended  by  section 16 of part B of chapter 57 of the laws of
2007, is amended to read as follows:
  b. District plans of service. Any school district receiving  an  addi-
tional  apportionment  pursuant  to  subdivision ten of this section for
pupils in career education programs or a payment in lieu of such  appor-
tionment  or having a public excess cost aid setaside pursuant to subdi-
vision four of this section shall keep on file and  make  available  for
public  inspection  and review by the commissioner an acceptable plan of
service describing the student outcomes expected from implementation  of
the  proposed  plan,  provided that such plan may be incorporated into a
school district's district-wide comprehensive plan. The plan of  service
[submitted  by]  OF a school district receiving an additional apportion-
ment pursuant to this section for pupils with  disabilities  shall  also
describe  how  such  district  intends  to ensure that all instructional
materials to be used in the schools of such district will be made avail-
able in a usable alternative format for each student with  a  disability
and for each student who is a qualified individual with a disability, at

A. 7340--A                         14

the same time as such instructional materials are available to non-disa-
bled  students, provided that such plan may incorporate by reference the
alternative format plans developed pursuant to subdivision twenty-nine-a
of section sixteen hundred four, subdivision four-a of section seventeen
hundred  nine,  subdivision seven-a of section twenty-five hundred three
or subdivision seven-a of section twenty-five hundred fifty-four of this
chapter. Such plans shall be in a form prescribed by  the  commissioner,
and  except as heretofore provided, shall have the content prescribed by
the commissioner. The commissioner  may,  from  time  to  time,  require
amendments  of  such  plans as deemed to be necessary and appropriate to
further the educational welfare of the pupils involved.
  S 21. Paragraph f of subdivision 11 of section 3602 of  the  education
law,  as added by chapter 82 of the laws of 1995 and such subdivision as
renumbered by section 15 of part B of chapter 57 of the laws of 2007, is
amended to read as follows:
  f. Approved  plan  of  service  and  program  evaluation.  All  school
districts  and  BOCES desiring to operate an aidable program pursuant to
this subdivision shall complete [a comprehensive  plan  of  service]  AN
application,  including a budget by program component[, together with an
evaluation of the effectiveness of program components offered during the
most recent July first through March thirtieth, if  any].  Such  [evalu-
ation and plan] APPLICATION shall be in a form prescribed by the commis-
sioner  and shall be submitted not later than [forty-five days after the
provisions of this paragraph shall have become law, and not later  than]
May  fifteenth  in [subsequent] EACH school [years] YEAR.  Within forty-
five days of such deadline, and upon evaluation  of  such  applications,
the  commissioner  shall  notify  school  districts  and  BOCES of those
portions of such [plan of service] APPLICATION that will be  aidable  in
the school year ahead after making a determination that approval of such
[programs]  APPLICATION  will  assure  maximum effectiveness, geographic
availability and lack of  duplication  of  such  programs,  support  for
educational initiatives, and compliance with required program and fiscal
reporting  requirements. No aid shall be payable pursuant to this subdi-
vision unless the [program] APPLICATION is approved by the commissioner.
  S 22. Paragraph d of subdivision 26-a of section 3602 of the education
law is REPEALED.
  S 23. Subdivision 13  of  section  3602-e  of  the  education  law  is
REPEALED.
  S  24.  Section  3635  of the education law is amended by adding a new
subdivision 8 to read as follows:
  8. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR REGULATION,  IN
SCHOOL  DISTRICTS  HAVING  AN AREA OF FORTY SQUARE MILES OR LESS, IF THE
BOARD OF EDUCATION DETERMINES, BASED UPON HISTORY AND  EXPERIENCE,  THAT
THERE IS A CONSISTENT PATTERN OF ELIGIBLE PUPILS NOT USING THE TRANSPOR-
TATION PROVIDED BY THE DISTRICT, THE BOARD, IN ITS DISCRETION, MAY ENACT
A POLICY TO PROVIDE STUDENT TRANSPORTATION BASED UPON PATTERNS OF ACTUAL
RIDERSHIP  WITHOUT  REGARD  TO:   A. THE NUMBER OF STUDENTS ELIGIBLE FOR
TRANSPORTATION; AND B. THE NUMBER  OF  SEATS  THAT  WOULD  OTHERWISE  BE
REQUIRED FOR THEM UNDER PARAGRAPH A OF SUBDIVISION ONE OF THIS SECTION.
  S  25.  The  tax law is amended by adding a new section 178 to read as
follows:
  S 178. "MIDDLE CLASS STAR" REBATE PROGRAM. 1. THE  COMMISSIONER  SHALL
ISSUE  THE  LOCAL  PROPERTY  TAX  REBATES AUTHORIZED BY SECTION THIRTEEN
HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW. FOR PURPOSES OF THIS SECTION
THE REBATE SHALL BE CALCULATED USING THE COMPUTATION FORMULA  SET  FORTH
IN SUBDIVISION THREE OF SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROP-

A. 7340--A                         15

ERTY TAX LAW. PROVIDED, HOWEVER, SUCH REBATES SHALL NOT BE ISSUED IN ANY
YEAR IN WHICH AN APPROPRIATION TO PAY SUCH REBATES HAS NOT BEEN INCLUDED
IN THE ENACTED STATE BUDGET FOR SUCH YEAR.
  2.  ON  OR  BEFORE  AUGUST  FIFTEENTH, TWO THOUSAND NINE AND EACH YEAR
THEREAFTER, THE EXECUTIVE  DIRECTOR  OF  THE  OFFICE  OF  REAL  PROPERTY
SERVICES,  OR HIS OR HER DESIGNEE, OR ON OR BEFORE JULY FIRST, TWO THOU-
SAND NINE AND EACH YEAR THEREAFTER IN THE CASE OF A CITY  WITH  A  POPU-
LATION  OF  ONE  MILLION  OR  MORE,  THE  COMMISSIONER OF FINANCE, SHALL
PROVIDE TO THE COMMISSIONER A REPORT  IN  A  MUTUALLY  AGREEABLE  FORMAT
CONCERNING THOSE PARCELS WHICH SATISFY THE CRITERIA SET FORTH IN SECTION
THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW.
  3.  THE  COMMISSIONER IN CONSULTATION WITH THE OFFICE OF REAL PROPERTY
SERVICES AND IN THE CASE OF A CITY WITH A POPULATION OF ONE  MILLION  OR
MORE,  THE  COMMISSIONER OF FINANCE, IS AUTHORIZED TO DEVELOP PROCEDURES
NECESSARY TO PROVIDE FOR THE ISSUANCE OF LOCAL PROPERTY TAX  REBATES  TO
QUALIFYING  PROPERTY  OWNERS,  AND THOSE QUALIFYING PROPERTY OWNERS THAT
DID NOT RECEIVE THEM INITIALLY. IF THE  COMMISSIONER  IS  NOT  SATISFIED
THAT  THE PROPERTY OWNER IS QUALIFIED FOR THE LOCAL PROPERTY TAX REBATE,
THE COMMISSIONER SHALL NOT ISSUE SUCH REBATE.
  4. WHEN THE PROPER PAYMENT OF A TAX REBATE UNDER THIS SECTION  DEPENDS
UPON  CONSTRUCTION  OF THE MEANING OF THE PROVISIONS OF SECTION THIRTEEN
HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW (AND ANY  RELATED  PROVISIONS
OF  SUCH LAW) OR INTERPRETATION OF THE TERMS CONTAINED THEREIN, IT SHALL
BE THE RESPONSIBILITY OF THE STATE BOARD OF REAL  PROPERTY  SERVICES  TO
PROVIDE TO THE DEPARTMENT THE CONSTRUCTION OR INTERPRETATION OF ANY SUCH
PROVISIONS OR TERMS.
  5.  BY DEPOSITING A REBATE ISSUED PURSUANT TO THIS SECTION AND AUTHOR-
IZED BY SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW, THE
PAYEE IS CERTIFYING THAT HE OR SHE IS THE PROPERTY OWNER, AND  THAT  THE
PRIMARY  RESIDENCE  OF  SUCH PROPERTY OWNER IS NOT SUBJECT TO ANY DELIN-
QUENT SCHOOL TAXES.
  6. VERIFICATION OF "AFFILIATED INCOME" FOR "MIDDLE CLASS STAR"  REBATE
PROGRAM.  (A) GENERALLY. THE DETERMINATION OF THE "AFFILIATED INCOME" OF
PARCELS FOR PURPOSES OF  THE  "MIDDLE  CLASS  STAR"  REBATE  PROGRAM  AS
AUTHORIZED BY SUBDIVISION THREE OF SECTION THIRTEEN HUNDRED SIX-B OF THE
REAL PROPERTY TAX LAW SHALL BE MADE AS PROVIDED BY THIS SECTION.
  (B) FOR PURPOSES OF THIS SUBDIVISION, THE TERM "INCOME" SHALL HAVE THE
SAME  MEANING  AS  SET  FORTH  IN  SUBPARAGRAPH (II) OF PARAGRAPH (B) OF
SUBDIVISION FOUR OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPER-
TY TAX LAW. THE TERM "AFFILIATED INCOME" SHALL MEAN THE COMBINED  INCOME
OF  ALL OF THE OWNERS OF THE PARCEL WHO RESIDED PRIMARILY THEREON ON THE
TAXABLE STATUS DATE FOR THE ASSESSMENT ROLL USED TO GENERATE THE  APPLI-
CABLE  SCHOOL  TAX  BILLS,  AND OF ANY OWNERS' SPOUSES FILING JOINTLY OR
SPOUSES' RESIDING PRIMARILY THEREON IN  THE  CASES  OF  SPOUSES'  FILING
SEPARATE  RETURNS ON SUCH TAXABLE STATUS DATE AND SHALL BE DETERMINED AS
FOLLOWS:
  (I) FOR THE TWO THOUSAND NINE--TWO THOUSAND TEN  SCHOOL  YEAR,  AFFIL-
IATED INCOME SHALL BE DETERMINED BASED UPON THE PARTIES' INCOMES FOR THE
INCOME  TAX  YEAR ENDING IN TWO THOUSAND SEVEN. IN EACH SUBSEQUENT YEAR,
THE APPLICABLE INCOME TAX YEAR SHALL BE ADVANCED BY ONE YEAR.
   (II) THE DEPARTMENT SHALL DETERMINE THE AFFILIATED  INCOME  FOR  EACH
PARCEL  AND SHALL ASSIGN A REBATE AMOUNT FOR EACH PARCEL BASED UPON SUCH
DETERMINATION. IN ANY CASE WHERE AFFILIATED INCOME CANNOT BE DETERMINED,
A REBATE SHALL NOT BE ISSUED.
  7. NOTIFICATION REQUIREMENT. THE  DEPARTMENT  SHALL  MAIL  INFORMATION
CONCERNING  THE  "MIDDLE CLASS STAR" REBATE PROGRAM TO OWNERS OF PARCELS

A. 7340--A                         16

RECEIVING A BASIC STAR EXEMPTION ON THE ASSESSMENT ROLL USED TO GENERATE
THE TWO THOUSAND NINE--TWO THOUSAND TEN SCHOOL TAX BILL. SUCH  NOTIFICA-
TION  SHALL EXPLAIN THAT PROPERTY OWNERS MUST FILE APPLICATIONS WITH THE
DEPARTMENT  IN  ORDER  TO  OBTAIN THE REBATE AVAILABLE UNDER THE "MIDDLE
CLASS STAR" REBATE PROGRAM. SUCH NOTICE SHALL  FURTHER  EXPLAIN  HOW  TO
OBTAIN THE APPLICATION.
  8.  APPLICATIONS.  (A)  IN ORDER TO OBTAIN THE BENEFITS OF THE "MIDDLE
CLASS STAR" REBATE PROGRAM, THE PROPERTY OWNER MUST SUBMIT  AN  APPLICA-
TION TO THE DEPARTMENT NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND
NINE.  THE  APPLICANT SHALL PROVIDE THE DEPARTMENT WITH SUCH INFORMATION
AS MAY BE NECESSARY TO DETERMINE THE  PARCEL'S  AFFILIATED  INCOME.  THE
PERSONS  OTHER  THAN  THE  APPLICANT  WHOSE INCOMES ARE NECESSARY TO THE
DETERMINATION OF THE PARCEL'S AFFILIATED INCOME SHALL BE REFERRED TO  IN
THIS  SECTION  AS  "AFFILIATED PERSONS." RECIPIENTS OF THE ENHANCED STAR
EXEMPTION SHALL NOT FILE AN APPLICATION TO RECEIVE A REBATE. THE DEPART-
MENT SHALL MAIL ENHANCED STAR REBATE RECIPIENTS THEIR REBATES IN A TIME-
LY MANNER.
  (B) IF THE APPLICANT OR ANY AFFILIATED PERSONS WERE  NOT  REQUIRED  TO
FILE NEW YORK STATE INCOME TAX RETURNS FOR THE TWO THOUSAND SEVEN INCOME
TAX  YEAR  BECAUSE  THEIR INCOMES WERE BELOW THE THRESHOLD THAT NECESSI-
TATED SUCH FILING, THE APPLICATION SHALL SO INDICATE.
  (C) IF THE APPLICANT OR ANY AFFILIATED PERSONS WERE  NOT  REQUIRED  TO
FILE NEW YORK STATE INCOME TAX RETURNS FOR THE TWO THOUSAND SEVEN INCOME
TAX  YEAR  BECAUSE THEY DID NOT RESIDE IN NEW YORK STATE IN SUCH TAXABLE
YEAR, THE APPLICATION SHALL SO INDICATE. SUCH PERSONS SHALL PROVIDE WITH
THE APPLICATION ANY INFORMATION THAT THE DEPARTMENT DETERMINES IS NECES-
SARY TO CALCULATE THE PARCEL'S AFFILIATED INCOME UNDER THE "MIDDLE CLASS
STAR" REBATE PROGRAM.
  (D) AFTER TWO THOUSAND NINE, APPLICATIONS SHALL BE REQUIRED ONLY  WHEN
A  NEW APPLICATION FOR A BASIC STAR EXEMPTION FOR REAL PROPERTY TAXATION
IS FILED PURSUANT TO SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL  PROP-
ERTY  TAX  LAW,  OR  WHEN  THERE IS A CHANGE OF OWNERSHIP WHICH DOES NOT
NECESSITATE THE FILING OF A NEW APPLICATION FOR A BASIC STAR  EXEMPTION.
IN  EITHER INSTANCE, AN APPLICATION SHALL BE SUBMITTED TO THE DEPARTMENT
ON A TIMELY BASIS.
  (E) IF AN APPLICATION FOR A "MIDDLE CLASS  STAR"  REBATE  IS  RECEIVED
AFTER  DECEMBER  THIRTY-FIRST,  TWO THOUSAND NINE, AN OTHERWISE ELIGIBLE
PROPERTY OWNER SHALL NOT RECEIVE A REBATE FOR SUCH YEAR.  HOWEVER,  SUCH
APPLICATION  SHALL BE CONSIDERED TIMELY FILED FOR A REBATE IN SUBSEQUENT
YEARS PROVIDED THE OWNERSHIP OF THE PARCEL REMAINS UNCHANGED.
  9. PROCESSING OF APPLICATIONS. (A) AFTER RECEIVING A  TIMELY  APPLICA-
TION, THE DEPARTMENT SHALL ATTEMPT TO DETERMINE THE AFFILIATED INCOME OF
THE  PARCEL  AND  THE  REBATE AMOUNT TO WHICH THE PARCEL IS ENTITLED, IF
ANY.
  (B) IN THE CASE OF AN APPLICATION WHICH INDICATES THAT  THE  APPLICANT
AND  ANY  AFFILIATED  PERSONS  WERE  NOT REQUIRED TO FILE NEW YORK STATE
INCOME TAX RETURNS FOR THE TWO THOUSAND SEVEN INCOME  TAX  YEAR  BECAUSE
THEIR  INCOMES WERE BELOW THE THRESHOLD WHICH NECESSITATED THE FILING OF
A STATE INCOME TAX RETURN, THE DEPARTMENT MAY, SUBJECT TO AUDIT, ISSUE A
REBATE EQUAL TO THE HIGHEST AMOUNT AVAILABLE FOR  THAT  SCHOOL  DISTRICT
SEGMENT.
  (C)  IN  THE CASE OF AN APPLICATION WHICH INDICATES THAT THE APPLICANT
AND ANY AFFILIATED PERSONS WERE NOT REQUIRED  TO  FILE  NEW  YORK  STATE
INCOME  TAX  RETURNS  FOR THE TWO THOUSAND SEVEN INCOME TAX YEAR BECAUSE
THEY DID NOT RESIDE IN NEW YORK STATE IN SUCH TAXABLE YEAR,  THE  APPLI-
CANT  SHALL PROVIDE SUCH INFORMATION REGARDING INCOME AS IS REQUESTED BY

A. 7340--A                         17

THE DEPARTMENT. THE DEPARTMENT SHALL  ISSUE  A  REBATE  BASED  UPON  THE
INFORMATION PROVIDED BY THE APPLICANT AND ANY OTHER INFORMATION TO WHICH
THE  DEPARTMENT  MAY HAVE ACCESS CONCERNING THE INCOME OF SUCH PERSON OR
PERSONS.
  10.  RECONSIDERATION  OF REBATE AMOUNT. IN THE EVENT THE DEPARTMENT IS
UNABLE TO DETERMINE THE AFFILIATED INCOME FOR A PARCEL OR THE DEPARTMENT
DETERMINES THAT A REBATE SHALL NOT BE ISSUED FOR A PARCEL,  THE  DEPART-
MENT  SHALL NOTIFY THE APPLICANT OF THAT FACT. A PROPERTY OWNER MAY SEEK
RECONSIDERATION OF THE REBATE AMOUNT DETERMINATION FOR HIS OR HER PARCEL
ON THE GROUNDS THAT THE PARCEL'S AFFILIATED INCOME WAS DETERMINED  ERRO-
NEOUSLY. A PROPERTY OWNER MAY ALSO SEEK RECONSIDERATION IF NO REBATE WAS
ISSUED  BECAUSE  THE  PARCEL'S  AFFILIATED  INCOME  WAS UNDETERMINED. AN
APPLICATION FOR RECONSIDERATION OF REBATE AMOUNT  SHALL  BE  MADE  IN  A
MANNER  PRESCRIBED  BY  THE DEPARTMENT, AND SHALL BE ACCOMPANIED BY SUCH
DOCUMENTATION AS THE DEPARTMENT MAY REQUIRE. SUCH APPLICATION  SHALL  BE
FILED NO LATER THAN MARCH THIRTY-FIRST, TWO THOUSAND TEN. IF THE DEPART-
MENT  FINDS  AFTER  REVIEWING SUCH AN APPLICATION THAT THE REBATE AMOUNT
DETERMINATION FOR A PARCEL  SHOULD  BE  CORRECTED,  IT  SHALL  ISSUE  AN
AMENDED OR INITIAL REBATE CHECK. IF THE DEPARTMENT FINDS AFTER REVIEWING
SUCH  AN APPLICATION THAT THE REBATE AMOUNT DETERMINATION FOR THE PARCEL
WAS CORRECTLY DETERMINED, IT SHALL SO NOTIFY THE APPLICANT. SUCH NOTIFI-
CATION SHALL INCLUDE AN EXPLANATION OF THE DEPARTMENT'S FINDINGS,  INDI-
CATE  THAT  THE  APPLICANT  HAS  THE RIGHT TO A PROCEEDING UNDER ARTICLE
SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW  AND  RULES,  AND  INDICATE  THE
STATUTE  OF  LIMITATIONS  ASSOCIATED WITH SUCH PROCEEDINGS. SUCH FINDING
SHALL BE SUBJECT TO REVIEW PURSUANT ONLY TO A PROCEEDING  UNDER  ARTICLE
SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES.
  11.  SPECIAL  PROVISIONS  RELATING TO CO-OPERATIVE APARTMENT UNITS AND
MOBILE HOMES. THE DEPARTMENT'S DETERMINATION OF AFFILIATED INCOME  SHALL
BE MADE WITH RESPECT TO THE TENANT-SHAREHOLDERS OR OWNERS OF THE UNIT IN
QUESTION RATHER THAN OF THE PARCEL.
  12.  SUBSEQUENT  YEARS.  IN EACH YEAR SUBSEQUENT TO TWO THOUSAND NINE,
AFFILIATED INCOMES SHALL CONTINUE TO BE DETERMINED AS PROVIDED  BY  THIS
SECTION  FOR  PURPOSES OF THE "MIDDLE CLASS STAR" REBATE PROGRAM, EXCEPT
THAT:
  (A) THE NOTIFICATION REQUIREMENT OF SUBDIVISION SEVEN OF THIS  SECTION
SHALL NOT BE APPLICABLE;
  (B)  APPLICATIONS  SHALL  BE  REQUIRED ONLY AS PROVIDED IN SUBDIVISION
EIGHT OF THIS SECTION; AND
  (C) IN EACH SUBSEQUENT YEAR, THE APPLICABLE INCOME TAX YEAR FOR DETER-
MINATIONS UNDER THIS SECTION SHALL  BE  ADVANCED  ONE  YEAR.  ALL  OTHER
APPLICABLE  DATES  AND  DEADLINES WHICH REFERENCE A DATE IN TWO THOUSAND
NINE SHALL BE ADVANCED AND SHALL BE DEEMED TO REFERENCE  DATES  IN  THAT
SUBSEQUENT  YEAR, EXCEPT THAT APPLICATIONS FOR RECONSIDERATION OF REBATE
AMOUNT  DETERMINATIONS  SHALL  BE  SUBMITTED   NO   LATER   THAN   MARCH
THIRTY-FIRST OF THE ENSUING YEAR.
  13.  CONFIDENTIAL  INFORMATION;  DISCLOSURE  PROHIBITION.  INFORMATION
REGARDING REBATES ISSUED TO INDIVIDUALS SHALL NOT BE SUBJECT TO  DISCLO-
SURE;  INCLUDING  NAMES,  ADDRESSES,  AND DOLLAR AMOUNTS OF REBATES.  IN
ADDITION, ALL APPLICATIONS SUBMITTED FOR REBATES SHALL NOT BE SUBJECT TO
DISCLOSURE.
  14. DEADLINE. IF ANY APPLICABLE DEADLINE SHALL  FALL  ON  A  SATURDAY,
SUNDAY  OR  LEGAL  HOLIDAY,  SUCH DEADLINE SHALL BE ADVANCED TO THE NEXT
BUSINESS DAY.
  15. AFFILIATED INCOME BRACKETS; INDEXING. THE DEPARTMENT SHALL  ESTAB-
LISH  THE  AFFILIATED  INCOME  BRACKETS TO BE ASSOCIATED WITH THE REBATE

A. 7340--A                         18

AMOUNTS FOR THE TWO THOUSAND TWELVE--TWO THOUSAND THIRTEEN  SCHOOL  YEAR
AND  EACH  SCHOOL  YEAR  THEREAFTER BY APPLYING THE INFLATION FACTOR SET
FORTH IN THIS SUBDIVISION TO THE FIGURES THAT DEFINED THE INCOME  BRACK-
ETS THAT WERE APPLICABLE TO THE TWO THOUSAND ELEVEN--TWO THOUSAND TWELVE
SCHOOL  YEAR,  AND  ROUNDING  EACH RESULT TO THE NEAREST MULTIPLE OF ONE
HUNDRED DOLLARS.   FOR PURPOSES  OF  THIS  SUBDIVISION,  THE  "INFLATION
FACTOR"  FOR  EACH  INCOME BRACKET SHALL BE DETERMINED BY THE PERCENTAGE
INCREASE IN THE CONSUMER PRICE INDEX FOR URBAN WAGE EARNERS AND CLERICAL
WORKERS (CPI-W) PUBLISHED BY THE  UNITED  STATES  DEPARTMENT  OF  LABOR,
BUREAU  OF  LABOR STATISTICS, FOR THE THIRD QUARTER OF THE CALENDAR YEAR
PRECEDING THE APPLICABLE SCHOOL YEAR, AS COMPARED TO THE  THIRD  QUARTER
OF  THE  PRIOR  CALENDAR  YEAR. IF A BASE FIGURE AS SO DETERMINED IS NOT
EXACTLY EQUAL TO A MULTIPLE OF ONE HUNDRED DOLLARS, IT SHALL BE  ROUNDED
TO  THE  NEAREST  MULTIPLE  OF  ONE  HUNDRED DOLLARS. IN EACH SUBSEQUENT
SCHOOL YEAR, THE PRIOR YEAR'S INCOME BRACKETS SHALL BE INDEXED USING THE
ABOVE FORMULA WITH EACH YEAR ADVANCED BY ONE YEAR.
  16. BEGINNING IN FISCAL YEAR TWO THOUSAND  TEN--TWO  THOUSAND  ELEVEN,
THE  DEPARTMENT  SHALL DETERMINE WHICH PROGRAM PROVIDES A LARGER BENEFIT
TO A TAXPAYER, THE "MIDDLE CLASS STAR"  REBATE  PROGRAM  IMPLEMENTED  BY
SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW OR THE MAXI-
MUM RESIDENTIAL SCHOOL TAX CREDIT AUTHORIZED PURSUANT TO SUBSECTION (QQ)
OF  SECTION  SIX  HUNDRED SIX OF THIS CHAPTER, AND SHALL ENSURE THAT THE
TAXPAYER RECEIVES THAT AMOUNT OF BENEFIT IN ANY GIVEN TAXABLE YEAR.
  S 26. Subparagraph (E) of paragraph 1 of subsection (e) of section 606
of the tax law, as amended by chapter  105  of  the  laws  of  2006,  is
amended to read as follows:
  (E)  "Qualifying  real  property taxes" means all real property taxes,
special ad valorem levies and special assessments, exclusive  of  penal-
ties  and  interest, levied on the residence of a qualified taxpayer and
paid during the taxable year [less the credit claimed  under  subsection
(n-1)  of  this section]. In addition, for taxable years beginning after
December thirty-first, nineteen hundred eighty-four, a qualified taxpay-
er may elect to include any  additional  amount  that  would  have  been
levied in the absence of an exemption from real property taxation pursu-
ant to section four hundred sixty-seven of the real property tax law. If
tenant-stockholders  in  a  cooperative housing corporation have met the
requirements of section two hundred sixteen of the internal revenue code
by which they are allowed a deduction for real estate taxes, the  amount
of  taxes  so allowable, or which would be allowable if the taxpayer had
filed returns on a cash basis, shall be qualifying real property  taxes.
If  a  residence is owned by two or more individuals as joint tenants or
tenants in common, and one or more than one individual is not  a  member
of  the  household,  qualifying real property taxes is that part of such
taxes on the residence which reflects the ownership  percentage  of  the
qualified  taxpayer  and  members of his household. If a residence is an
integral part of a larger unit, qualifying real property taxes shall  be
limited  to  that  amount of such taxes paid as may be reasonably appor-
tioned to such residence. If a household owns and occupies two  or  more
residences during different periods in the same taxable year, qualifying
real  property  taxes  shall  be the sum of the prorated qualifying real
property taxes attributable to the household  during  the  periods  such
household  occupies  each  of such residences. If the household owns and
occupies a residence for part of the taxable year and rents a  residence
for  part of the same taxable year, it may include both the proration of
qualifying real property taxes on the residence owned and the real prop-
erty tax equivalent with respect to the months the residence is  rented.

A. 7340--A                         19

Provided,  however,  for  purposes  of  the  credit  allowed  under this
subsection, qualifying real property taxes may be included by  a  quali-
fied  taxpayer  only  to  the extent that such taxpayer or the spouse of
such  taxpayer  occupying  such  residence for six months or more of the
taxable year owns or has owned the residence and paid such taxes.
  S 27. Section 606 of the tax law is amended by adding a new subsection
(qq) to read as follows:
  (QQ) MAXIMUM RESIDENTIAL SCHOOL TAX CREDIT. (1) DEFINITIONS.  FOR  THE
PURPOSES OF THIS SUBSECTION:
  (A)  "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE WHO
OWNS THE RESIDENTIAL REAL PROPERTY IN WHICH HE OR SHE RESIDES.
  (B) "HOUSEHOLD" MEANS THE TAXPAYER OR TAXPAYERS AND ALL OTHER PERSONS,
NOT NECESSARILY RELATED, WHO ALL RESIDE IN THE RESIDENTIAL REAL PROPERTY
OWNED BY THE TAXPAYER OR TAXPAYERS, AND SHARE ITS  FURNISHINGS,  FACILI-
TIES AND ACCOMMODATIONS; PROVIDED THAT NO PERSON MAY BE A MEMBER OF MORE
THAN ONE HOUSEHOLD AT ONE TIME.
  (C) "HOUSEHOLD GROSS INCOME" MEANS THE AGGREGATE ADJUSTED GROSS INCOME
OF  ALL  MEMBERS  OF  THE HOUSEHOLD FOR THE TAXABLE YEAR AS REPORTED FOR
FEDERAL INCOME TAX PURPOSES, OR WHICH  WOULD  BE  REPORTED  AS  ADJUSTED
GROSS  INCOME  IF A FEDERAL INCOME TAX RETURN WERE REQUIRED TO BE FILED,
WITH THE MODIFICATIONS IN SUBSECTION (B) OF SECTION SIX  HUNDRED  TWELVE
OF  THIS ARTICLE BUT WITHOUT THE MODIFICATIONS IN SUBSECTION (C) OF SUCH
SECTION, PLUS ANY PORTION OF THE GAIN FROM THE SALE OR EXCHANGE OF PROP-
ERTY OTHERWISE EXCLUDED FROM SUCH AMOUNT;  EARNED  INCOME  FROM  SOURCES
WITHOUT  THE  UNITED  STATES  EXCLUDABLE  FROM  FEDERAL  GROSS INCOME BY
SECTION NINE HUNDRED ELEVEN OF THE INTERNAL REVENUE CODE; SUPPORT  MONEY
NOT  INCLUDED  IN  ADJUSTED  GROSS  INCOME;  NONTAXABLE STRIKE BENEFITS;
SUPPLEMENTAL SECURITY INCOME PAYMENTS; THE GROSS AMOUNT OF  ANY  PENSION
OR  ANNUITY  BENEFITS  TO THE EXTENT NOT INCLUDED IN SUCH ADJUSTED GROSS
INCOME (INCLUDING, BUT NOT LIMITED TO, RAILROAD RETIREMENT BENEFITS  AND
ALL  PAYMENTS  RECEIVED UNDER THE FEDERAL SOCIAL SECURITY ACT AND VETER-
ANS' DISABILITY PENSIONS); NONTAXABLE INTEREST RECEIVED FROM  THE  STATE
OF  NEW  YORK,  ITS AGENCIES, INSTRUMENTALITIES, PUBLIC CORPORATIONS, OR
POLITICAL SUBDIVISIONS (INCLUDING A PUBLIC CORPORATION CREATED  PURSUANT
TO  AGREEMENT OR COMPACT WITH ANOTHER STATE OR CANADA); WORKERS' COMPEN-
SATION; THE GROSS AMOUNT OF "LOSS-OF-TIME" INSURANCE; AND THE AMOUNT  OF
CASH PUBLIC ASSISTANCE AND RELIEF, OTHER THAN MEDICAL ASSISTANCE FOR THE
NEEDY,  PAID  TO OR FOR THE BENEFIT OF THE QUALIFIED TAXPAYER OR MEMBERS
OF HIS OR HER  HOUSEHOLD.  HOUSEHOLD  GROSS  INCOME  SHALL  NOT  INCLUDE
SURPLUS  FOODS  OR  OTHER RELIEF IN KIND OR PAYMENTS MADE TO INDIVIDUALS
BECAUSE OF THEIR STATUS AS VICTIMS OF NAZI  PERSECUTION  AS  DEFINED  IN
PUBLIC LAW 103-286. PROVIDED, FURTHER, HOUSEHOLD GROSS INCOME SHALL ONLY
INCLUDE  ALL  SUCH INCOME RECEIVED BY ALL MEMBERS OF THE HOUSEHOLD WHILE
MEMBERS OF SUCH HOUSEHOLD.   FOR FARM FAMILIES EARNING  AT  LEAST  FIFTY
PERCENT  OF  THEIR INCOME FROM FARMING, "ADJUSTED GROSS INCOME" SHALL BE
REPLACED WITH "MODIFIED ADJUSTED GROSS INCOME" FOR FEDERAL TAX  PURPOSES
AS  REPORTED ON THE APPLICANT'S FEDERAL AND STATE INCOME TAX RETURNS FOR
THE APPLICABLE INCOME TAX YEAR.
  (D) "NET SCHOOL TAX" MEANS THE SCHOOL TAXES ASSESSED ON  THE  RESIDEN-
TIAL REAL PROPERTY OWNED AND OCCUPIED BY THE TAXPAYER OR TAXPAYERS AFTER
ANY  EXEMPTION  OR  ABATEMENT RECEIVED PURSUANT TO THE REAL PROPERTY TAX
LAW.  SUCH NET SCHOOL TAX SHALL INCLUDE ANY  SCHOOL  TAXES  ASSESSED  ON
FARM  DWELLINGS  NOT  OWNED  BY  THE RESIDENT IF THE LEGAL TITLE TO SUCH
DWELLING IS HELD BY A PARTNERSHIP AND THE DWELLING SERVES AS THE PRIMARY
RESIDENCE OF ONE OR MORE OF THE PARTNERS, OR  IF  LEGAL  TITLE  TO  SUCH
DWELLING  IS  HELD  BY  AN  S-CORPORATION  OR BY A C-CORPORATION AND THE

A. 7340--A                         20

DWELLING SERVES AS THE PRIMARY RESIDENCE OF A SHAREHOLDER OF SUCH CORPO-
RATION.
  (2) CREDIT. A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE
TAXES  IMPOSED  BY  THIS ARTICLE, EQUAL TO SEVENTY PERCENT OF THE AMOUNT
WHICH THE TAXPAYER'S NET  SCHOOL  TAX  EXCEEDS  THE  TAXPAYER'S  MAXIMUM
SCHOOL TAX, AS DETERMINED BY PARAGRAPH THREE OF THIS SUBSECTION. IF SUCH
CREDIT  EXCEEDS  THE  TAX FOR SUCH TAXABLE YEAR, AS REDUCED BY THE OTHER
CREDITS PERMITTED BY THIS ARTICLE, THE QUALIFIED TAXPAYER  MAY  RECEIVE,
AND  THE  COMPTROLLER, SUBJECT TO A CERTIFICATE OF THE DEPARTMENT, SHALL
PAY AS AN OVERPAYMENT, WITHOUT INTEREST, ANY EXCESS BETWEEN SUCH TAX  AS
SO  REDUCED AND THE AMOUNT OF THE CREDIT. IF A QUALIFIED TAXPAYER IS NOT
REQUIRED TO FILE A RETURN PURSUANT TO SECTION SIX HUNDRED  FIFTY-ONE  OF
THIS  ARTICLE,  A  QUALIFIED  TAXPAYER  MAY NEVERTHELESS RECEIVE AND THE
COMPTROLLER, SUBJECT TO A CERTIFICATE OF THE DEPARTMENT, SHALL PAY AS AN
OVERPAYMENT THE FULL AMOUNT OF THE CREDIT, WITHOUT INTEREST.
  (3) MAXIMUM SCHOOL TAX. (A) A QUALIFIED TAXPAYER'S MAXIMUM SCHOOL  TAX
SHALL BE DETERMINED AS FOLLOWS:
  (I)  IN  THE  CITY  OF  NEW YORK, AND THE COUNTIES OF NASSAU, SUFFOLK,
ROCKLAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS:

       HOUSEHOLD GROSS INCOME                   MAXIMUM SCHOOL TAX

       ONE HUNDRED TWENTY THOUSAND              SIX PERCENT OF THE
       DOLLARS OR LESS                          HOUSEHOLD GROSS INCOME

       MORE THAN ONE HUNDRED                    SEVEN PERCENT OF
       TWENTY THOUSAND                          THE HOUSEHOLD
       DOLLARS, BUT                             GROSS INCOME
       LESS THAN OR EQUAL TO
       ONE HUNDRED SEVENTY-FIVE
       THOUSAND DOLLARS

       MORE THAN ONE HUNDRED                    EIGHT PERCENT OF
       SEVENTY-FIVE THOUSAND                    THE HOUSEHOLD
       DOLLARS, BUT LESS THAN                   GROSS INCOME
       OR EQUAL TO TWO HUNDRED
       FIFTY THOUSAND DOLLARS

       MORE THAN TWO HUNDRED                    NO LIMITATION.
       FIFTY THOUSAND
       DOLLARS
  (II) IN ALL OTHER COUNTIES IN THE STATE:

       HOUSEHOLD GROSS                          MAXIMUM SCHOOL
       INCOME                                   TAX

       NINETY THOUSAND                          SIX PERCENT OF THE
       DOLLARS OR LESS                          HOUSEHOLD GROSS INCOME

       MORE THAN NINETY                         SEVEN PERCENT OF
       THOUSAND DOLLARS, BUT                    THE HOUSEHOLD
       LESS THAN OR EQUAL TO                    GROSS INCOME
       ONE HUNDRED FIFTY
       THOUSAND DOLLARS

       MORE THAN ONE HUNDRED                    EIGHT PERCENT OF

A. 7340--A                         21

       FIFTY THOUSAND DOLLARS,                  THE HOUSEHOLD
       BUT LESS THAN OR EQUAL                   GROSS INCOME
       TO TWO HUNDRED FIFTY THOUSAND
       DOLLARS

       MORE THAN TWO HUNDRED FIFTY              NO LIMITATION.
       THOUSAND DOLLARS
  (B)  THE  THRESHOLDS OF HOUSEHOLD GROSS INCOME FOR ELIGIBILITY FOR THE
MAXIMUM SCHOOL TAX CREDIT, ESTABLISHED BY SUBPARAGRAPH (A) OF THIS PARA-
GRAPH, SHALL BE INDEXED FOR INFLATION.
  (4) EXCLUSIONS FROM ELIGIBILITY. NO CREDIT SHALL BE GRANTED UNDER THIS
SUBSECTION IF THE  QUALIFIED  TAXPAYER  CLAIMS  THE  REAL  PROPERTY  TAX
CIRCUIT  BREAKER  CREDIT,  PURSUANT  TO  SUBSECTION (E) OF THIS SECTION,
DURING THE TAXABLE YEAR.
  (5) FOR PURPOSES OF THIS SUBSECTION, IN THE CITIES OF BUFFALO, ROCHES-
TER, YONKERS, AND SYRACUSE, A TAXPAYER'S NET SCHOOL TAX SHALL BE  DETER-
MINED  BY  MULTIPLYING  SUCH  TAXPAYER'S TOTAL REAL PROPERTY TAX BILL BY
SIXTY-SEVEN PERCENT. IN THE CITY OF NEW YORK, A  TAXPAYER'S  NET  SCHOOL
TAX  SHALL BE DETERMINED BY MULTIPLYING SUCH TAXPAYER'S TOTAL REAL PROP-
ERTY TAX BILL BY FIFTY PERCENT.
  S 28. Subdivision 3 of section 97-rrr of the  state  finance  law,  as
amended  by  section  8 of part F of chapter 109 of the laws of 2006, is
amended to read as follows:
  3. The monies in such fund shall be appropriated for  school  property
tax  exemptions [and local property tax rebates] granted pursuant to the
real property tax law and [the tax law and payable pursuant  to  section
thirty-six  hundred nine of the education law,] for payments to the city
of New York pursuant to  section  fifty-four-f  of  this  chapter[,  and
pursuant to section one hundred seventy-eight of the tax law].
  S  29. The general municipal law is amended by adding a new section 25
to read as follows:
  S 25. FUNDING OF MANDATES. 1. DEFINITIONS. AS USED  IN  THIS  SECTION,
THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS UNLESS THE CONTEXT
SHALL OTHERWISE REQUIRE:
  (A) "MANDATE" MEANS:
  (I)  ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM OR
REQUIRES A HIGHER LEVEL OF SERVICE  FOR  AN  EXISTING  PROGRAM  WHICH  A
MUNICIPAL CORPORATION IS REQUIRED TO PROVIDE; OR
  (II)  ANY  GENERAL  LAW  WHICH  GRANTS A NEW PROPERTY TAX EXEMPTION OR
INCREASES AN EXISTING PROPERTY TAX EXEMPTION WHICH THE MUNICIPAL  CORPO-
RATION IS REQUIRED TO PROVIDE.
  (B) "UNFUNDED MANDATE" SHALL MEAN:
  (I)  ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM OR
REQUIRES A HIGHER LEVEL OF SERVICE  FOR  AN  EXISTING  PROGRAM  WHICH  A
MUNICIPAL  CORPORATION IS REQUIRED TO PROVIDE AND WHICH RESULTS IN A NET
ADDITIONAL COST TO THE MUNICIPAL CORPORATION;
  (II) ANY ALTERATION IN FUNDING PROVIDED TO A MUNICIPAL CORPORATION FOR
THE PURPOSE OF DEFRAYING THE COSTS OF A PROGRAM WHICH IT IS REQUIRED  TO
PROVIDE,  THEREBY  RESULTING  IN  A NET ADDITIONAL COST TO THE MUNICIPAL
CORPORATION; OR
  (III) ANY GENERAL LAW WHICH GRANTS A NEW  PROPERTY  TAX  EXEMPTION  OR
INCREASES  AN EXISTING PROPERTY TAX EXEMPTION WHICH THE MUNICIPAL CORPO-
RATION IS REQUIRED TO PROVIDE, THEREBY RESULTING  IN  A  NET  ADDITIONAL
COST TO THE MUNICIPAL CORPORATION.
  (C)  "NET  ADDITIONAL COST" MEANS THE COST OR COSTS INCURRED OR ANTIC-
IPATED TO BE INCURRED WITHIN A ONE YEAR PERIOD BY A LOCAL GOVERNMENT  IN

A. 7340--A                         22

PERFORMING  OR  ADMINISTERING  A MANDATE AFTER SUBTRACTING THEREFROM ANY
REVENUES RECEIVED OR RECEIVABLE BY THE LOCAL GOVERNMENT  ON  ACCOUNT  OF
THE MANDATED PROGRAM OR SERVICE, INCLUDING BUT NOT LIMITED TO:
  (I) FEES CHARGED TO THE RECIPIENTS OF THE MANDATED PROGRAM OR SERVICE;
  (II)  STATE  OR  FEDERAL  AID  PAID  SPECIFICALLY  OR CATEGORICALLY IN
CONNECTION WITH THE PROGRAM OR SERVICE; AND
  (III) AN OFFSETTING SAVINGS RESULTING FROM THE  DIMINUTION  OR  ELIMI-
NATION  OF  ANY  OTHER  PROGRAM  OR SERVICE DIRECTLY ATTRIBUTABLE TO THE
PERFORMANCE OR ADMINISTRATION OF THE MANDATED PROGRAM.
  2. FUNDING OF MUNICIPAL CORPORATION MANDATES. (A) NOTWITHSTANDING  ANY
OTHER  PROVISION  OF  LAW,  NO  UNFUNDED  MANDATE SHALL BE ENACTED WHICH
CREATES AN ANNUAL NET ADDITIONAL COST TO ANY  MUNICIPAL  CORPORATION  IN
EXCESS  OF  TEN  THOUSAND  DOLLARS OR AN AGGREGATE ANNUAL NET ADDITIONAL
COST TO ALL MUNICIPAL CORPORATIONS IN EXCESS OF ONE MILLION DOLLARS.
  (B) THERE SHALL BE NO NEW LEGISLATIVE OR REGULATORY  MANDATES  IMPOSED
ON  LOCAL  GOVERNMENTS  WITHOUT  A  COMPLETE  ACCOUNTING OF THE EXPECTED
FISCAL IMPACT ON  SUCH  LOCAL  GOVERNMENTS,  AND  SUCH  ACCOUNTING  MUST
INCLUDE  FULL  DOCUMENTATION,  INPUT  FROM  AFFECTED  MUNICIPALITIES AND
PROPOSED REVENUE SOURCES WITH WHICH TO FUND THE NEW MANDATE.
  3.  EXEMPTIONS  TO  THE  FUNDING  OF  MUNICIPAL  CORPORATION  MANDATES
REQUIREMENT.  (A)  THE  STATE  SHALL  NOT BE REQUIRED TO FUND ANY NEW OR
EXPANDED PROGRAMS IF:
  (I) THE MANDATE IS REQUIRED BY A COURT ORDER OR JUDGMENT;
  (II) THE MANDATE IS PROVIDED AT THE OPTION  OF  THE  LOCAL  GOVERNMENT
UNDER  A  LAW, REGULATION, RULE, OR ORDER THAT IS PERMISSIVE RATHER THAN
MANDATORY;
  (III) THE MANDATE RESULTS FROM THE PASSAGE  OF  A  HOME  RULE  MESSAGE
WHEREBY  A  LOCAL GOVERNMENT REQUESTS AUTHORITY TO IMPLEMENT THE PROGRAM
OR SERVICE SPECIFIED IN THE STATUTE, AND THE STATUTE IMPOSES COSTS  ONLY
UPON  THAT  LOCAL  GOVERNMENT WHICH REQUESTS THE AUTHORITY TO IMPOSE THE
PROGRAM OR SERVICE;
  (IV) THE MANDATE IS REQUIRED BY, OR ARISES FROM, AN EXECUTIVE ORDER OF
THE GOVERNOR EXERCISING HIS OR HER EMERGENCY POWERS; OR
  (V) THE MANDATE IS REQUIRED BY STATUTE OR EXECUTIVE ORDER THAT  IMPLE-
MENTS A FEDERAL LAW OR REGULATION AND RESULTS FROM COSTS MANDATED BY THE
FEDERAL GOVERNMENT TO BE BORNE AT THE LOCAL LEVEL, UNLESS THE STATUTE OR
EXECUTIVE  ORDER RESULTS IN COSTS WHICH EXCEED THE COSTS MANDATED BY THE
FEDERAL GOVERNMENT.
  (B) EACH ACT ESTABLISHING A MANDATE SHALL PROVIDE THAT  THE  EFFECTIVE
DATE  OF  ANY  SUCH  MANDATE  IMPOSED ON MUNICIPAL CORPORATIONS SHALL BE
CONSISTENT WITH THE NEEDS OF THE STATE  AND  MUNICIPAL  CORPORATIONS  TO
PLAN  IMPLEMENTATION  THEREOF  AND  CONSISTENT  WITH THE AVAILABILITY OF
REQUIRED FUNDS.
  S 30. Subparagraph 2 of paragraph d of subdivision 4 of  section  1950
of the education law is REPEALED.
  S 31. Subdivision 4 of section 1950 of the education law is amended by
adding a new paragraph oo to read as follows:
  OO.   (1) FORM HEALTH INSURANCE TRUSTS WITH COMPONENT SCHOOL DISTRICTS
OR DISTRICTS OF CHILDREN WHO RESIDE  WITHIN  THE  BOARD  OF  COOPERATIVE
EDUCATIONAL SERVICES TO PURCHASE AND ADMINISTER EMPLOYEES' HEALTH INSUR-
ANCE AND WORKERS' COMPENSATION INSURANCE.
  (2)  ENTER  INTO  CONTRACTS WITH THE SCHOOL DISTRICTS OF THE CITIES OF
ROCHESTER, BUFFALO, SYRACUSE, AND YONKERS TO PROVIDE ITS SERVICES.   THE
BOARD  SHALL, IN ITS SOLE DISCRETION, DETERMINE THE FAIR MARKET VALUE OF
THE SERVICES THAT IT PROVIDES TO EACH SCHOOL DISTRICT.

A. 7340--A                         23

  S 32. Subparagraphs (A) and (B) of paragraph 2 of  subsection  (e)  of
section  1310 of the tax law, as amended by section 4 of part M of chap-
ter 57 of the laws of 2009, are amended to read as follows:
  (A) Married individuals filing joint returns and surviving spouses. In
the case of a husband and wife who make a single return jointly and of a
surviving spouse:
     For taxable years beginning:       The credit shall be:
               in 2001-2005                    $125
               in 2006                         $230
               in 2007-2008                    $290
               in 2009 [and after]             [$125] $310
               AFTER 2009                      $335
  (B)  All  others.  In the case of an unmarried individual, a head of a
household or a married individual filing a separate return:
     For taxable years beginning:       The credit shall be:
               in 2001-2005                    $62.50
               in 2006                         $115
               in 2007-2008                    $145
               in 2009 [and after]             [$62.50] $155
               AFTER 2009                      $167.50
  S 33. This act shall take effect immediately, provided that:
  a. the provisions of sections one, ten and  twenty-nine  of  this  act
shall be deemed to have been in full force and effect on and after April
1,  2009 and shall apply to any general or special law imposing mandates
on municipal corporations or school districts enacted on or  after  such
effective date;
  b. the commissioner of education shall adopt any regulations needed to
implement the provisions of this act on or before July 1, 2010;
  c.  the  provisions  of sections twenty-six, twenty-seven, and twenty-
eight of this act shall  take  effect  on  the  first  of  January  next
succeeding the date on which it shall have become a law, and shall apply
to taxable years commencing on or after such date; and
  d.  the  provisions  of  section  seven  of this act shall take effect
February 1, 2010 and shall first apply to the levy of  taxes  by  school
districts  for the 2010-2011 school year and to school district meetings
and elections held on and after such effective date; and
  e. sections six, twelve, thirteen, and fourteen of this act shall take
effect July 1, 2010.

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 7340--B

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             March 31, 2009
                               ___________

Introduced  by M. of A. BRODSKY, SPANO, LATIMER, GORDON -- read once and
  referred to the Committee on Ways and Means --  committee  discharged,
  bill  amended,  ordered  reprinted  as amended and recommitted to said
  committee -- again  reported  from  said  committee  with  amendments,
  ordered reprinted as amended and recommitted to said committee

AN  ACT  to  amend the real property tax law, in relation to the "Middle
  Class STAR" rebate program; to amend the education law, in relation to
  the effect of mandates on school districts;  to  amend  the  education
  law,  in  relation  to  the  streamlining  of  planning  and reporting
  requirements for school districts and  boards  of  cooperative  educa-
  tional  services;  to  amend  the  tax  law, in relation to the school
  district property tax credit and establishing the maximum  residential
  school  property  tax,  personal income tax credit; to amend the state
  finance law, in relation to local property tax rebates; to  amend  the
  general  municipal law and the education law, in relation to requiring
  the state to fund certain programs mandated for municipal corporations
  and school districts; to amend  the  education  law,  in  relation  to
  student transportation; to repeal subdivision 32 of section 305 of the
  education law relating to a study of reporting requirements; to repeal
  section  805  of  the education law relating to special procedures for
  enforcement of the health education curriculum; to repeal subparagraph
  2 of paragraph d of subdivision 4 of section 1950 of the education law
  relating to prohibited aidable shared services; to repeal subparagraph
  2-a of paragraph d of subdivision 4 of section 1950 of  the  education
  law  relating  to demonstration of cost-effectiveness of instructional
  and  non-instructional  technology  acquired   by   component   school
  districts  through  a  board  of  cooperative educational services; to
  repeal paragraph d of subdivision 26-a of section 3602 of  the  educa-
  tion law relating to a plan for use of instructional computer technol-
  ogy  equipment;  and to repeal subdivision 13 of section 3602-e of the
  education law relating to annual reports on universal  prekindergarten
  programs

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10689-03-9

              

A. 7340--B                          2

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Legislative intent. State mandated programs, unlike local
service decisions, place local taxpayers  and  local  officials  in  the
position  of paying for services that they do not control. Increasingly,
however, the state has set local priorities and forced municipal  taxing
decisions  by  mandating services, programs, and standards. As a result,
many local governments and school districts  are  today  in  an  acutely
difficult fiscal situation.
  Thus,  in  order  to prevent irresponsible state actions which prevent
localities from making their own decisions,  and  which  force  unwanted
local  property  tax  increases,  it  is  necessary to ensure that state
mandates will not be forced on localities and  school  districts  unless
they are adequately funded.
  S  2.  The  real  property  tax law is amended by adding a new section
1306-b to read as follows:
  S 1306-B. "MIDDLE CLASS STAR" REBATE PROGRAM. 1. TAX REBATES. (A) IF A
PARCEL IS ENTITLED TO THE BASIC OR ENHANCED STAR EXEMPTION AUTHORIZED BY
SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER FOR  THE  TWO  THOUSAND
SIX--TWO  THOUSAND  SEVEN  SCHOOL YEAR AND EACH YEAR THEREAFTER, A LOCAL
PROPERTY TAX REBATE SHALL BE PROVIDED TO THE OWNER  OR  OWNERS  OF  SUCH
PARCEL AS SHOWN ON THE FINAL ASSESSMENT ROLL FOR SUCH YEAR, IN AN AMOUNT
COMPUTED  AS PRESCRIBED BY THIS SECTION AND SECTION ONE HUNDRED SEVENTY-
EIGHT OF THE TAX LAW.
  (B) IT SHALL BE THE RESPONSIBILITY OF THE STATE DEPARTMENT OF TAXATION
AND FINANCE TO ISSUE SUCH TAX REBATES  TO  SUCH  OWNERS  IN  THE  MANNER
PROVIDED  BY  SECTION  ONE HUNDRED SEVENTY-EIGHT OF THE TAX LAW. NOTHING
CONTAINED HEREIN SHALL BE CONSTRUED AS PERMITTING PARTIAL OR INSTALLMENT
PAYMENTS OF TAXES IN A JURISDICTION WHICH HAS NOT  AUTHORIZED  THE  SAME
PURSUANT TO LAW.
  2. PROCEDURE. (A) ON OR BEFORE AUGUST FIFTEENTH, TWO THOUSAND NINE AND
EACH YEAR THEREAFTER, THE EXECUTIVE DIRECTOR OF THE OFFICE OF REAL PROP-
ERTY  SERVICES,  OR HIS OR HER DESIGNEE, OR ON OR BEFORE JULY FIRST, TWO
THOUSAND NINE AND EACH YEAR THEREAFTER, IN THE CASE OF  A  CITY  WITH  A
POPULATION  OF  ONE MILLION OR MORE, THE COMMISSIONER OF FINANCE, OR HIS
OR HER DESIGNEE, SHALL PROVIDE  TO  THE  COMMISSIONER  OF  TAXATION  AND
FINANCE A REPORT IN A MUTUALLY AGREEABLE FORMAT CONCERNING THOSE PARCELS
WHICH  HAVE BEEN GRANTED AN EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED
TWENTY-FIVE OF THIS CHAPTER ON THE ASSESSMENT ROLLS USED TO GENERATE THE
SCHOOL TAX BILLS FOR THE TWO THOUSAND NINE--TWO THOUSAND TEN SCHOOL  TAX
YEAR  AND  FOR EACH YEAR THEREAFTER; PROVIDED HOWEVER THE INFORMATION TO
BE PROVIDED ON SUCH REPORT SHALL BE OBTAINED FROM THE  FINAL  ASSESSMENT
ROLL DATA FILES USED TO GENERATE THE TWO THOUSAND NINE--TWO THOUSAND TEN
SCHOOL  TAX  BILLS  AND EACH YEAR THEREAFTER, FILED WITH THE STATE BOARD
PURSUANT TO SECTION FIFTEEN HUNDRED NINETY OF THIS CHAPTER ON OR  BEFORE
JULY  THIRTY-FIRST  OF  SUCH YEAR. SUCH REPORT SHALL SET FORTH THE NAMES
AND MAILING ADDRESSES OF THE OWNERS OF SUCH PARCELS  AS  SHOWN  ON  SUCH
ASSESSMENT  ROLL  DATA FILES, THE IDENTIFICATION NUMBERS OF SUCH PARCELS
AS SHOWN ON SUCH ASSESSMENT ROLL DATA FILES, AND SUCH OTHER  INFORMATION
IN  THE  POSSESSION  OF  THE OFFICE OF REAL PROPERTY SERVICES, OR IN THE
CASE OF A CITY WITH A POPULATION OF ONE MILLION OR MORE, THE COMMISSION-
ER OF FINANCE, AS THE COMMISSIONER OF  TAXATION  AND  FINANCE  MAY  DEEM
NECESSARY  FOR  THE  EFFECTIVE ADMINISTRATION OF THIS PROGRAM, INCLUDING
INFORMATION REGARDING COOPERATIVE APARTMENT BUILDINGS  AND  MOBILE  HOME
PARKS  OR SIMILAR PROPERTY. IT SHALL BE THE RESPONSIBILITY OF THE ASSES-

A. 7340--B                          3

SOR OR ASSESSORS OF EACH ASSESSING UNIT TO ENSURE  THAT  THE  NAMES  AND
MAILING  ADDRESSES  OF SUCH OWNERS ARE ACCURATELY RECORDED ON SUCH ROLLS
AND FILES TO THE BEST OF HIS OR HER ABILITY, BASED UPON THE  INFORMATION
CONTAINED  IN  HIS  OR HER OFFICE. NOTHING CONTAINED IN THIS SUBDIVISION
SHALL BE CONSTRUED AS AFFECTING IN ANY WAY THE VALIDITY OR ENFORCEABILI-
TY OF A REAL PROPERTY TAX, OR THE APPLICABILITY OF INTEREST OR PENALTIES
WITH RESPECT THERETO, WHEN AN OWNER'S NAME OR MAILING  ADDRESS  HAS  NOT
BEEN ACCURATELY RECORDED.
  (B) (I) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDI-
VISION,  WHERE  AN  ASSESSING UNIT CONTAINS ONE OR MORE PROPERTIES WHICH
ARE RECEIVING SUCH EXEMPTION IN RELATION TO A PRIOR YEAR ASSESSMENT ROLL
PURSUANT TO PARAGRAPH (D) OF SUBDIVISION SIX  OF  SECTION  FOUR  HUNDRED
TWENTY-FIVE  OF  THIS  CHAPTER,  OR  CONTAINS  ONE  OR MORE PARCELS WITH
RESPECT TO WHICH SUCH EXEMPTION WAS DULY  ADDED  OR  REMOVED  AFTER  THE
FILING  OF THE FINAL ASSESSMENT ROLL PURSUANT TO THE PROVISIONS OF TITLE
THREE OF ARTICLE FIVE OF THIS  CHAPTER,  THE  OFFICE  OF  REAL  PROPERTY
SERVICES  MAY  REQUIRE  THE  ASSESSOR TO FILE WITH IT, ON OR BEFORE JULY
THIRTY-FIRST, TWO THOUSAND NINE AND EACH YEAR THEREAFTER, OR SUCH  LATER
DATE  AS SUCH OFFICE MAY SPECIFY, A SUPPLEMENTAL REPORT RELATING TO SUCH
PROPERTY OR PROPERTIES, SO THAT INFORMATION  PERTAINING  TO  THE  OWNERS
THEREOF  MAY BE INCLUDED IN THE REPORT TO BE MADE TO THE COMMISSIONER OF
TAXATION AND FINANCE PURSUANT TO THIS PARAGRAPH.  WHEN  ANY  INFORMATION
REQUIRED  BY  THIS  PARAGRAPH IS RECEIVED BY THE OFFICE OF REAL PROPERTY
SERVICES AFTER JULY THIRTY-FIRST, TWO THOUSAND NINE AND EACH YEAR THERE-
AFTER, SUCH INFORMATION SHALL BE TRANSMITTED AS SOON AS REASONABLY PRAC-
TICABLE TO THE COMMISSIONER OF TAXATION AND FINANCE FOR USE  IN  ISSUING
LOCAL PROPERTY TAX REBATES PURSUANT TO SECTION ONE HUNDRED SEVENTY-EIGHT
OF THE TAX LAW.
  (II)  WHERE  THE  OWNERSHIP  OF  A PARCEL THAT HAD BEEN ELIGIBLE FOR A
REBATE PURSUANT TO THIS SECTION CHANGES OR AN  EXEMPTION  UNDER  SECTION
FOUR  HUNDRED  TWENTY-FIVE  OF THIS CHAPTER HAS BEEN GRANTED OR REMOVED,
THE ASSESSOR SHALL NOTIFY THE STATE BOARD OF THE CHANGE  NO  LATER  THAN
AUGUST  FIRST  OF THE FOLLOWING YEAR. THE STATE BOARD SHALL FORWARD SUCH
REPORT TO THE DEPARTMENT OF TAXATION AND FINANCE IN A TIMELY MANNER  AND
IN A MUTUALLY-AGREEABLE FORMAT.
  3.  (A)  THE  STATE  BOARD SHALL CALCULATE THE REBATE BASE AS PROVIDED
HEREIN AND CERTIFY THE SAME TO THE DEPARTMENT OF TAXATION AND FINANCE NO
LATER THAN JULY FIRST, TWO THOUSAND NINE.
  (B) THREE REBATE BASES FOR THE BASIC STAR EXEMPTION  SHALL  BE  DETER-
MINED  FOR  EACH SEGMENT FOR THE TWO THOUSAND NINE--TWO THOUSAND TEN AND
SUBSEQUENT SCHOOL YEARS. SUCH REBATE BASES SHALL BE COMPUTED  BY  DETER-
MINING THE EXEMPT AMOUNT ESTABLISHED FOR THE SEGMENT FOR PURPOSES OF THE
BASIC  STAR  EXEMPTION  FOR  THE  TWO  THOUSAND EIGHT--TWO THOUSAND NINE
SCHOOL YEAR, MULTIPLYING THAT AMOUNT BY THE  SCHOOL  DISTRICT  TAX  RATE
APPLICABLE  WITHIN  THAT  SEGMENT  FOR  PURPOSES  OF  THE  TWO  THOUSAND
EIGHT--TWO  THOUSAND  NINE  SCHOOL  YEAR,  AS  REPORTED  BY  THE  SCHOOL
DISTRICT, AND THEN MULTIPLYING THE PRODUCT BY THE FOLLOWING:
  (I)  FOR  PURPOSES  OF  THE TWO THOUSAND NINE--TWO THOUSAND TEN SCHOOL
YEAR AND THE TWO THOUSAND TEN--TWO THOUSAND ELEVEN SCHOOL YEAR, BY SIXTY
PERCENT,  FORTY-FIVE  PERCENT  AND  THIRTY  PERCENT,  RESPECTIVELY.  THE
RESULTS  SHALL  BE  ASSOCIATED  WITH  THE FIRST, SECOND AND THIRD INCOME
BRACKETS, RESPECTIVELY, THAT ARE APPLICABLE WITHIN THAT SEGMENT.
  (II) FOR PURPOSES OF THE  TWO  THOUSAND  ELEVEN--TWO  THOUSAND  TWELVE
SCHOOL  YEAR,  BY  SEVENTY  PERCENT,  FIFTY-TWO AND ONE-HALF PERCENT AND
THIRTY-FIVE PERCENT, RESPECTIVELY. THE RESULTS SHALL BE ASSOCIATED  WITH

A. 7340--B                          4

THE  FIRST,  SECOND  AND  THIRD  INCOME BRACKETS, RESPECTIVELY, THAT ARE
APPLICABLE WITHIN THAT SEGMENT.
  (III)  FOR  PURPOSES OF THE TWO THOUSAND TWELVE--TWO THOUSAND THIRTEEN
AND SUBSEQUENT SCHOOL YEARS, BY EIGHTY PERCENT, SIXTY PERCENT AND  FORTY
PERCENT,  RESPECTIVELY.  THE RESULTS SHALL BE ASSOCIATED WITH THE FIRST,
SECOND AND THIRD INCOME  BRACKETS,  RESPECTIVELY,  THAT  ARE  APPLICABLE
WITHIN THAT SEGMENT.
  (IV) INCOME BRACKETS. (A) IN THE CITY OF NEW YORK, AND THE COUNTIES OF
NASSAU, SUFFOLK, ROCKLAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS, THE
FIRST  INCOME  BRACKET  SHALL  BE UP TO AND INCLUDING ONE HUNDRED TWENTY
THOUSAND DOLLARS; THE SECOND INCOME BRACKET SHALL BE  OVER  ONE  HUNDRED
TWENTY  THOUSAND  DOLLARS  UP  TO AND INCLUDING ONE HUNDRED SEVENTY-FIVE
THOUSAND DOLLARS; AND THE THIRD INCOME BRACKET SHALL BE OVER ONE HUNDRED
SEVENTY-FIVE THOUSAND DOLLARS UP TO  AND  INCLUDING  TWO  HUNDRED  FIFTY
THOUSAND DOLLARS.
  (B) IN ALL OTHER COUNTIES IN THE STATE, THE FIRST INCOME BRACKET SHALL
BE UP TO AND INCLUDING NINETY THOUSAND DOLLARS; THE SECOND INCOME BRACK-
ET  SHALL  BE  OVER  NINETY THOUSAND DOLLARS AND UP TO AND INCLUDING ONE
HUNDRED FIFTY THOUSAND DOLLARS; AND THE THIRD INCOME  BRACKET  SHALL  BE
OVER  ONE  HUNDRED  FIFTY  THOUSAND  DOLLARS AND UP TO AND INCLUDING TWO
HUNDRED FIFTY THOUSAND DOLLARS.
  (C) SUCH BRACKETS ARE SUBJECT TO INDEXING FOR  INFLATION  PURSUANT  TO
SUBDIVISION FIFTEEN OF SECTION ONE HUNDRED SEVENTY-EIGHT OF THE TAX LAW.
  (C)  ONE  REBATE  BASE FOR THE ENHANCED STAR EXEMPTION SHALL BE DETER-
MINED FOR EACH SEGMENT FOR THE TWO THOUSAND NINE--TWO THOUSAND  TEN  AND
SUBSEQUENT  SCHOOL  YEARS. SUCH REBATE BASES SHALL BE COMPUTED BY DETER-
MINING THE EXEMPT AMOUNT ESTABLISHED FOR THE SEGMENT FOR PURPOSES OF THE
ENHANCED STAR EXEMPTION FOR THE TWO THOUSAND  EIGHT--TWO  THOUSAND  NINE
SCHOOL  YEAR,  MULTIPLYING  THAT  AMOUNT BY THE SCHOOL DISTRICT TAX RATE
APPLICABLE WITHIN THAT SEGMENT FOR PURPOSES  OF  THAT  SCHOOL  YEAR,  AS
REPORTED BY THE SCHOOL DISTRICT, AND THEN MULTIPLYING THE PRODUCT BY THE
FOLLOWING:
  (I)  FOR  PURPOSES  OF  THE TWO THOUSAND NINE--TWO THOUSAND TEN SCHOOL
YEAR, BY TWENTY-FIVE PERCENT.
  (II) FOR PURPOSES OF THE TWO THOUSAND  TEN--TWO  THOUSAND  ELEVEN  AND
SUBSEQUENT SCHOOL YEARS, BY THIRTY-FIVE PERCENT.
  (D) FOR PURPOSES OF THIS SECTION, THE TERM "SEGMENT" MEANS THE PART OF
A CITY OR TOWN THAT IS WITHIN A SCHOOL DISTRICT.
  (E)  IN THE CASE OF SCHOOL DISTRICTS WITHIN SPECIAL ASSESSING UNITS AS
DEFINED IN SECTION EIGHTEEN HUNDRED ONE  OF  THIS  CHAPTER,  THE  SCHOOL
DISTRICT  TAX  RATE  TO  BE  USED FOR THIS PURPOSE SHALL BE THE TAX RATE
APPLICABLE TO CLASS ONE PROPERTIES AS DEFINED  IN  ARTICLE  EIGHTEEN  OF
THIS  CHAPTER,  AS REPORTED BY THE SCHOOL DISTRICT AND THE EXEMPT AMOUNT
SHALL BE ESTABLISHED FOR THE SEGMENT. IN THE CASE  OF  SCHOOL  DISTRICTS
WITHIN  APPROVED  ASSESSING UNITS AS DEFINED IN SECTION NINETEEN HUNDRED
ONE OF THIS CHAPTER WHICH HAVE ADOPTED THE PROVISIONS OF  SECTION  NINE-
TEEN  HUNDRED  THREE OF THIS CHAPTER, THE SCHOOL DISTRICT TAX RATE TO BE
USED FOR THIS PURPOSE SHALL BE THE TAX RATE APPLICABLE TO THE  HOMESTEAD
CLASS,  AS  DEFINED  IN ARTICLE NINETEEN OF THIS CHAPTER, AS REPORTED BY
THE SCHOOL DISTRICT.
  (F) WHERE THE PROVISIONS OF SUBPARAGRAPH  (IV)  OF  PARAGRAPH  (K)  OF
SUBDIVISION  TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER ARE
APPLICABLE, THE APPLICABLE REBATE  AMOUNT  SHALL  BE  ONE-THIRD  OF  THE
OTHERWISE  APPLICABLE REBATE AMOUNT SET FORTH IN PARAGRAPH (B) OR (C) OF
THIS SUBDIVISION. THE STATE BOARD SHALL CALCULATE  AND  CERTIFY  TO  THE
DEPARTMENT OF TAXATION AND FINANCE THE REBATE AMOUNTS APPLICABLE IN SUCH

A. 7340--B                          5

CASES,  ALONG  WITH  THE CERTIFICATION REQUIRED BY PARAGRAPH (A) OF THIS
SUBDIVISION.
  S  3.  The  education  law is amended by adding a new section 101-b to
read as follows:
  S 101-B. PAPERWORK REDUCTION. 1. IT SHALL BE THE DUTY OF  THE  COMMIS-
SIONER  TO REDUCE THE PAPERWORK BURDEN ON SCHOOL DISTRICTS AND BOARDS OF
COOPERATIVE EDUCATIONAL SERVICES BY ELIMINATING AND AVOIDING DUPLICATIVE
REPORTING REQUIREMENTS WHEREVER POSSIBLE, AND  BY  CONSOLIDATING  PLANS,
REPORTS  AND  APPLICATIONS,  WHERE POSSIBLE, WHILE FOCUSING PLANNING AND
REPORTING ON RESULTS RATHER THAN THE  PROCESSES  TO  ACHIEVE  THEM.  THE
COMMISSIONER  SHALL CONFORM STATE REPORTING AND PLANNING REQUIREMENTS TO
FEDERAL REQUIREMENTS, WHERE POSSIBLE, AND  SHALL  SEEK  FEDERAL  WAIVERS
WHERE NEEDED TO ALIGN STATE AND FEDERAL REQUIREMENTS.
  2.  THE  COMMISSIONER  SHALL  REDUCE  THE NUMBER OF PLANS, REPORTS AND
APPLICATIONS REQUIRED BY LAW, OF SCHOOL DISTRICTS AND BOARDS OF  COOPER-
ATIVE EDUCATIONAL SERVICES BY ESTABLISHING STREAMLINED AND UNIFIED ELEC-
TRONIC  DATA  COLLECTION  SYSTEMS  WHICH  ELIMINATE REDUNDANT REPORTING,
CONNECT PLANNING AND REPORTING, AND WHICH FOCUS ON COLLECTING  DATA  AND
REQUIRING PLANNING ONLY WHEN NECESSARY TO ASSURE FISCAL AND PROGRAMMATIC
ACCOUNTABILITY,  TO  FOSTER  CONTINUOUS SCHOOL IMPROVEMENT AND CLOSE THE
GAP BETWEEN ACTUAL  AND  DESIRED  STUDENT  ACHIEVEMENT,  AND  TO  ASSURE
SCHOOLS  PROVIDE A SAFE AND SECURE ENVIRONMENT AND/OR PROTECT THE HEALTH
AND SAFETY OF STUDENTS AND STAFF. SUCH  SYSTEMS  SHALL  MATCH  OVERSIGHT
WITH  THE  DEGREE OF RISK BY LINKING PLANNING AND REPORTING TO THE STATE
SYSTEM OF ACCOUNTABILITY REQUIRED UNDER FEDERAL LAW,  PROVIDING  FOR  AN
AUDIT  BASED ASSESSMENT OF RISK OF POOR STUDENT PERFORMANCE, POOR FISCAL
PERFORMANCE OR IMPROPER MANAGEMENT OR USE OF PUBLIC FUNDS.  THE  COMMIS-
SIONER  SHALL  ESTABLISH PARTNERSHIPS WITH SELECTED SCHOOL DISTRICTS AND
BOARDS OF COOPERATIVE EDUCATIONAL SERVICES  TO  PROMOTE  BETTER  USE  OF
REQUIRED PLANNING AND REPORTING AND SHALL ASSURE THAT REPORTING REQUIRE-
MENTS  INCLUDE  DATA  WHICH  CAN BE USED TO IDENTIFY BEST PRACTICES. THE
COMMISSIONER SHALL PROVIDE FOR THE SHARING OF EFFECTIVE  PLANNING  PRAC-
TICES  WITH  SCHOOL  DISTRICTS  AND,  TO  THE  EXTENT PRACTICABLE, SHALL
PROVIDE TECHNICAL ASSISTANCE ON THE USE OF DATA  FOR  PLANNING,  INVOLVE
BOARDS  OF  COOPERATIVE  EDUCATIONAL SERVICES AND INSTITUTIONS OF HIGHER
EDUCATION IN PROVIDING TRAINING ON THE USE OF DATA FOR  STRATEGIC  PLAN-
NING TO SUPERINTENDENTS OF SCHOOLS, SCHOOL BUSINESS OFFICIALS AND TEACH-
ERS, PROVIDE FOR TRAINING ON THE USE OF DATA IN PLANNING TO SCHOOL BOARD
MEMBERS AND INVOLVE RESEARCHERS IN DATA ANALYSIS AND EVALUATION.
  S  4. Section 215-b of the education law, as amended by chapter 301 of
the laws of 1996, is amended to read as follows:
  S 215-b. Annual report by commissioner to  governor  and  legislature.
The commissioner shall prepare and submit to the governor, the president
pro  tem  of  the  senate and the speaker of the assembly not later than
January first, nineteen hundred ninety-six and by the first day of Janu-
ary in each year  thereafter,  a  report  detailing  the  financial  and
statistical outcomes of boards of cooperative educational services which
shall[,  at  minimum,]  set  forth  with respect to the preceding school
year[: tuition costs for selected  programs;  standard  per  pupil  cost
information for selected services as determined by the commissioner; and
aggregate expenditure data for the following categories: administration,
instructional  services,  career  education, special education, rent and
facilities and other services; and  such  other  information  as  deemed
appropriate]  INFORMATION  NECESSARY  TO  ASSURE  THE  ACCOUNTABILITY OF
BOARDS OF COOPERATIVE EDUCATIONAL SERVICES FOR ITS FISCAL  AND  PROGRAM-
MATIC  RESOURCES,  AS  SET  FORTH IN REGULATIONS TO BE PRESCRIBED by the

A. 7340--B                          6

commissioner. The format for such report shall be developed in consulta-
tion with school district officials and the director of the budget. Such
report will include changes from the year prior to the report  year  for
each such item for all boards of cooperative educational services.  Such
report  shall be distributed to all school districts and boards of coop-
erative educational services and shall be made available  to  all  other
interested parties upon request.
  S 5. Subdivision 32 of section 305 of the education law is REPEALED.
  S  6.  The  education  law is amended by adding a new section 308-a to
read as follows:
  S 308-A. SPECIAL PROVISIONS; MANDATES. 1. AS  USED  IN  THIS  SECTION,
"MANDATE"  MEANS  (A)  ANY STATE LAW, RULE OR REGULATION WHICH CREATES A
NEW PROGRAM OR REQUIRES A  HIGHER  LEVEL  OF  SERVICE  FOR  AN  EXISTING
PROGRAM  WHICH  A  SCHOOL  DISTRICT, ORGANIZED EITHER BY SPECIAL LAWS OR
PURSUANT TO THE PROVISIONS OF A GENERAL LAW, IS REQUIRED TO PROVIDE, OR
  (B) ANY GENERAL LAW WHICH GRANTS  A  NEW  PROPERTY  TAX  EXEMPTION  OR
INCREASES  AN  EXISTING  PROPERTY  TAX  EXEMPTION  WHICH ANY SUCH SCHOOL
DISTRICT IS REQUIRED TO PROVIDE.
  2. IN THE EVENT THAT A MANDATE WHICH IMPOSES  A  COST  UPON  A  SCHOOL
DISTRICT  IS CREATED AFTER THE ADOPTION OF A SCHOOL BUDGET, SUCH MANDATE
SHALL NOT BE IMPLEMENTED UNTIL THE FOLLOWING YEAR FOR WHICH SUCH  SCHOOL
BUDGET WAS ADOPTED.
  3. NOTWITHSTANDING SUBDIVISION TWO OF THIS SECTION, SUCH A MANDATE CAN
BE IMPOSED IF:
  (A) THE MANDATE IS PROVIDED AT THE OPTION OF THE SCHOOL DISTRICT UNDER
A LAW, REGULATION, RULE OR ORDER THAT IS PERMISSIVE RATHER THAN MANDATO-
RY;
  (B)  THE MANDATE IS REQUIRED BY, OR ARISES FROM, AN EXECUTIVE ORDER OF
THE GOVERNOR EXERCISING HIS OR HER EMERGENCY POWERS; OR
  (C) THE MANDATE IS REQUIRED BY STATUTE OR EXECUTIVE ORDER THAT  IMPLE-
MENTS A FEDERAL LAW OR REGULATION AND RESULTS FROM COSTS MANDATED BY THE
FEDERAL GOVERNMENT TO BE BORNE AT THE LOCAL LEVEL, UNLESS THE STATUTE OR
EXECUTIVE  ORDER  IMPOSES  COSTS  WHICH EXCEED THE COSTS MANDATED BY THE
FEDERAL GOVERNMENT.
  4. THE OFFICE OF THE STATE COMPTROLLER SHALL MAKE A FISCAL ANALYSIS OF
THE AGGREGATE IMPACT OF NEW STATE LEGISLATION AND  RULEMAKING  ON  LOCAL
GOVERNMENTS  AND SCHOOL DISTRICTS AND SHALL MAKE SUCH INFORMATION AVAIL-
ABLE TO THE PUBLIC.
  S 7. Subdivisions 1 and 3 of section 416 of the education law,  subdi-
vision 1 as amended by chapter 687 of the laws of 1949 and subdivision 3
as  amended  by  chapter 171 of the laws of 1996, are amended to read as
follows:
  1. A majority of the voters of any school district, present and voting
at any annual or special district meeting, duly convened, may  authorize
such  acts  and  vote such taxes as they shall deem expedient for making
additions, alterations, repairs or improvements, to the sites or  build-
ings  belonging  to  the  district,  or  for  altering and equipping for
library use any former schoolhouse belonging to the district, or for the
purchase of other sites or buildings, or for a change of sites,  or  for
the  purchase  of  land  and buildings for agricultural, athletic, play-
ground or social center purposes, or for the erection of new  buildings,
or  for  building a bus garage, or for [buying apparatus, implements, or
fixtures, or for  paying  the  wages  of  teachers,  and  the  necessary
expenses  of  the  school, or for the purpose of paying any judgment, or
for] the payment or refunding of an outstanding bonded indebtedness[, or

A. 7340--B                          7

for such other purpose relating to the support and welfare of the school
as they may, by resolution, approve].
  3.  No  addition to or change of site or purchase of a new site or tax
for the purchase of any new site or structure, or for grading or improv-
ing a school site, or for the purchase of an addition to the site of any
schoolhouse, or for the purchase of lands  and  buildings  for  agricul-
tural,  athletic,  playground or social center purposes, or for building
any new schoolhouse or for the erection of an addition  to  any  school-
house  already  built, or for the payment or refunding of an outstanding
bonded indebtedness, shall be voted at any such meeting in a union  free
school  district or a city school district [which conducts annual budget
votes in accordance with article forty-one of this chapter  pursuant  to
section  twenty-six  hundred  one-a of this chapter] IN A CITY WITH LESS
THAN ONE HUNDRED TWENTY-FIVE THOUSAND INHABITANTS, unless  a  notice  by
the board of education stating that such tax will be proposed, and spec-
ifying  the object thereof and the amount to be expended therefor, shall
have been given in the manner provided herein for the notice of an annu-
al meeting. In a common school district the notice of a special  meeting
to authorize any of the improvements enumerated in this section shall be
given as provided in section two thousand six. The board of education of
a  union  free school district or a city school district [which conducts
annual budget votes in accordance with article forty-one of this chapter
pursuant to section twenty-six hundred one-a of this chapter] IN A  CITY
WITH  LESS THAN ONE HUNDRED TWENTY-FIVE THOUSAND INHABITANTS, may deter-
mine that the vote upon any question to be submitted at a special  meet-
ing  as  provided  in  this section shall be by ballot, in which case it
shall state in the notice of such special meeting the hours during which
the polls shall be kept open. Printed ballots may  be  prepared  by  the
board  in  advance  of  the  meeting and the proposition or propositions
called for in the notice of the meeting may be submitted in substantial-
ly the same manner as  propositions  to  be  voted  upon  at  a  general
election.
  S 8. Section 805 of the education law is REPEALED.
  S  9. Subdivision 2 of section 806 of the education law, as amended by
chapter 946 of the laws of 1973, is amended to read as follows:
  2. The regents shall determine the subjects to  be  included  in  such
courses  of instruction in highway safety and traffic regulation includ-
ing bicycle safety, and the period of instruction in each of the  grades
in such subjects.  [They shall adopt rules providing for attendance upon
such instruction and for such other matters as are required for carrying
into  effect  the  teaching  of the courses of instruction prescribed by
this section.  The commissioner of education shall  be  responsible  for
the  enforcement  of  such  section  and shall cause to be inspected and
supervise the instruction to be given in such subjects. The commissioner
may, in his discretion, cause all or a  portion  of  the  public  school
money to be apportioned to a district or city to be withheld for failure
of  the  school authorities of such district or city to provide instruc-
tion in such courses and to compel attendance upon such instruction,  as
herein prescribed, and for a noncompliance with the rules of the regents
adopted as herein provided.]
  S  10.  The education law is amended by adding a new section 1527-a to
read as follows:
  S 1527-A. FUNDING OF MANDATES IMPOSED ON SCHOOL DISTRICTS. 1.    DEFI-
NITIONS.  AS  USED  IN  THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS UNLESS THE CONTEXT SHALL OTHERWISE REQUIRE:
  (A) "MANDATE" MEANS:

A. 7340--B                          8

  (I) ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM  OR
REQUIRES  A  HIGHER  LEVEL  OF  SERVICE  FOR AN EXISTING PROGRAM WHICH A
SCHOOL DISTRICT ORGANIZED EITHER BY SPECIAL  LAWS  OR  PURSUANT  TO  THE
PROVISIONS OF A GENERAL LAW, IS REQUIRED TO PROVIDE; OR
  (II)  ANY  GENERAL  LAW  WHICH  GRANTS A NEW PROPERTY TAX EXEMPTION OR
INCREASES AN EXISTING PROPERTY  TAX  EXEMPTION  WHICH  ANY  SUCH  SCHOOL
DISTRICT IS REQUIRED TO PROVIDE.
  (B) "UNFUNDED MANDATE" SHALL MEAN:
  (I)  ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM OR
REQUIRES A HIGHER LEVEL OF SERVICE FOR AN  EXISTING  PROGRAM  WHICH  ANY
SUCH  SCHOOL  DISTRICT IS REQUIRED TO PROVIDE AND WHICH RESULTS IN A NET
ADDITIONAL COST TO SUCH SCHOOL DISTRICT;
  (II) ANY ALTERATION IN FUNDING PROVIDED TO ANY  SUCH  SCHOOL  DISTRICT
FOR THE PURPOSE OF DEFRAYING THE COSTS OF A PROGRAM WHICH IT IS REQUIRED
TO  PROVIDE,  THEREBY  RESULTING IN A NET ADDITIONAL COST TO SUCH SCHOOL
DISTRICT; OR
  (III) ANY GENERAL LAW WHICH GRANTS A NEW  PROPERTY  TAX  EXEMPTION  OR
INCREASES  AN  EXISTING  PROPERTY  TAX  EXEMPTION  WHICH ANY SUCH SCHOOL
DISTRICT IS REQUIRED TO PROVIDE, THEREBY RESULTING IN A  NET  ADDITIONAL
COST TO SUCH SCHOOL DISTRICT.
  (C)  "NET  ADDITIONAL COST" MEANS THE COST OR COSTS INCURRED OR ANTIC-
IPATED TO BE INCURRED WITHIN A ONE YEAR PERIOD BY A SCHOOL  DISTRICT  IN
PERFORMING  OR  ADMINISTERING  A MANDATE AFTER SUBTRACTING THEREFROM ANY
REVENUES RECEIVED OR RECEIVABLE BY THE SCHOOL DISTRICT ON ACCOUNT OF THE
MANDATED PROGRAM OR SERVICE, INCLUDING BUT NOT LIMITED TO:
  (I) FEES CHARGED TO THE RECIPIENTS OF THE MANDATED PROGRAM OR SERVICE;
  (II) STATE OR  FEDERAL  AID  PAID  SPECIFICALLY  OR  CATEGORICALLY  IN
CONNECTION WITH THE PROGRAM OR SERVICE; AND
  (III)  AN  OFFSETTING  SAVINGS RESULTING FROM THE DIMINUTION OR ELIMI-
NATION OF ANY OTHER PROGRAM OR  SERVICE  DIRECTLY  ATTRIBUTABLE  TO  THE
PERFORMANCE OR ADMINISTRATION OF THE MANDATED PROGRAM.
  2. FUNDING OF SCHOOL DISTRICT MANDATES.  (A) NOTWITHSTANDING ANY OTHER
PROVISION  OF LAW, NO UNFUNDED MANDATE SHALL BE ENACTED WHICH CREATES AN
ANNUAL NET ADDITIONAL COST TO ANY SCHOOL DISTRICT IN EXCESS OF TEN THOU-
SAND DOLLARS OR AN AGGREGATE ANNUAL NET ADDITIONAL COST  TO  ALL  SCHOOL
DISTRICTS IN EXCESS OF ONE MILLION DOLLARS.
  (B)  THERE  SHALL BE NO NEW LEGISLATIVE OR REGULATORY MANDATES IMPOSED
ON SCHOOL DISTRICTS WITHOUT A COMPLETE ACCOUNTING OF THE EXPECTED FISCAL
IMPACT ON SUCH SCHOOL DISTRICTS, AND SUCH ACCOUNTING MUST  INCLUDE  FULL
DOCUMENTATION,  AN  OPPORTUNITY FOR INPUT FROM AFFECTED SCHOOL DISTRICTS
AND PROPOSED REVENUE SOURCES WITH WHICH TO FUND THE NEW MANDATE.
  3. EXEMPTIONS TO THE FUNDING OF SCHOOL DISTRICT MANDATES  REQUIREMENT.
(A) THE STATE SHALL NOT BE REQUIRED TO FUND ANY NEW OR EXPANDED PROGRAMS
FOR SCHOOL DISTRICTS IF:
  (I) THE MANDATE IS REQUIRED BY A COURT ORDER OR JUDGMENT;
  (II)  THE  MANDATE  IS  PROVIDED  AT THE OPTION OF THE SCHOOL DISTRICT
UNDER A LAW, REGULATION, RULE, OR ORDER THAT IS PERMISSIVE  RATHER  THAN
MANDATORY;
  (III)  THE  MANDATE  RESULTS  FROM  THE PASSAGE OF A HOME RULE MESSAGE
WHEREBY A SCHOOL DISTRICT REQUESTS AUTHORITY TO IMPLEMENT THE PROGRAM OR
SERVICE SPECIFIED IN THE STATUTE, AND THE  STATUTE  IMPOSES  COSTS  ONLY
UPON  THAT  SCHOOL  DISTRICT  WHICH REQUESTS THE AUTHORITY TO IMPOSE THE
PROGRAM OR SERVICE;
  (IV) THE MANDATE IS REQUIRED BY, OR ARISES FROM, AN EXECUTIVE ORDER OF
THE GOVERNOR EXERCISING HIS OR HER EMERGENCY POWERS; OR

A. 7340--B                          9

  (V) THE MANDATE IS REQUIRED BY STATUTE OR EXECUTIVE ORDER THAT  IMPLE-
MENTS A FEDERAL LAW OR REGULATION AND RESULTS FROM COSTS MANDATED BY THE
FEDERAL GOVERNMENT TO BE BORNE AT THE LOCAL LEVEL, UNLESS THE STATUTE OR
EXECUTIVE  ORDER RESULTS IN COSTS WHICH EXCEED THE COSTS MANDATED BY THE
FEDERAL GOVERNMENT.
  (B)  EACH  ACT ESTABLISHING A MANDATE SHALL PROVIDE THAT THE EFFECTIVE
DATE OF ANY SUCH MANDATE IMPOSED ON SCHOOL DISTRICTS SHALL BE CONSISTENT
WITH THE NEEDS OF THE STATE AND SCHOOL DISTRICTS TO PLAN  IMPLEMENTATION
THEREOF, AND ALSO CONSISTENT WITH THE AVAILABILITY OF REQUIRED FUNDS.
  S  11.  Subparagraph 1 of paragraph b of subdivision 4 of section 1950
of the education law, as amended by chapter 474 of the laws of 1996,  is
amended to read as follows:
  (1)  Prepare,  prior to the annual meeting of members of the boards of
education and school trustees, held as provided in paragraph o  of  this
subdivision, a tentative budget of expenditures for the program costs, a
tentative  budget  for  capital  costs,  and  a tentative budget for the
administration costs of the board of cooperative  educational  services.
Such  budgets  shall include the proposed budget for the upcoming school
year, the previous school year's actual costs  and  the  current  school
year's  projected  costs  for  each object of expenditure. Such program,
capital and administrative budgets shall  be  separately  delineated  in
accordance  with  the  definition of program, capital and administrative
costs which shall be promulgated by the commissioner after  consultation
with  school district officials and the director of the budget. Personal
service costs for each budget shall  include  the  number  of  full-time
equivalent  positions funded and total salary and, except as noted here-
in, fringe benefit costs for such positions  by  program.  Each  program
budget  shall  also  include  the local and statewide unit costs of such
programs and services proposed for the upcoming school year, such actual
unit costs for the previous school year, and the current  school  year's
projected  unit costs, all established in accordance with paragraph d of
this subdivision. The capital budget shall include facility construction
and lease expenditures authorized pursuant to paragraphs p, t and  u  of
this  subdivision, payments for the repayment of indebtedness related to
capital projects, payments for the acquisition or construction of facil-
ities, sites or additions, provided that such  budget  shall  contain  a
rental,  operations  and maintenance section that will include base rent
costs, total rent costs, operations and maintenance  charges,  cost  per
square  foot for each facility rented or leased by such board of cooper-
ative educational services, and any and all expenditures associated with
custodial salaries and benefits, service contracts, supplies, utilities,
maintenance and repairs for such facilities, and that such budget  shall
include  the  annual  debt  service  and  total  debt for all facilities
financed by bonds or notes of the component districts, annual rental and
lease payments and total rental and lease costs for all facilities rent-
ed by such board; such capital budget shall  also  include  expenditures
resulting  from court judgments and orders from administrative bodies or
officers, and, to the extent a board's administrative  budget  has  been
adopted,  one-time costs incurred in the first year in which an employee
retires. The administrative budget shall include, but need not be limit-
ed to, office and central administrative  expenses,  traveling  expenses
and  salaries  and  benefits of supervisors and administrative personnel
necessary to carry out the central administrative duties of the supervi-
sory district, any and all expenditures associated with the  board,  the
office  of  district  superintendent,  general  administration,  central
support services, planning, and  all  other  administrative  activities.

A. 7340--B                         10

Such administrative budget shall also specify the amount of supplementa-
ry  salary  and  benefits,  if any, which the board determines should be
paid to the district superintendent  of  schools  and  the  board  shall
append  to such budget a detailed statement of the total compensation to
be paid the district superintendent of schools by the board, including a
delineation of the salary, annualized cost of benefits and  any  in-kind
or  other  form  of  remuneration  to be paid, plus, commencing with the
presentation of the budget for the nineteen hundred  ninety-seven--nine-
ty-eight  school  year,  [a  list  of  items  of  expense  eligible  for
reimbursement on expense accounts in the  ensuing  school  year  and]  a
statement  of the amount of expenses paid to the district superintendent
of schools in the prior year for purposes of carrying  out  his  or  her
official duties.
  S  12.  Subparagraph 5 of paragraph b of subdivision 4 of section 1950
of the education law, as amended by chapter 602 of the laws of 1994,  is
amended to read as follows:
  (5)  The  trustees  or  board  of  education  of each component school
district of the board of cooperative educational services shall adopt  a
public  resolution  which  shall  approve  or  disapprove such tentative
administrative budget at a regular or special meeting to be held  within
the  component  district  on the date designated pursuant to subdivision
two-a of this section as the date for election of members of  the  board
of  cooperative  educational  services,  or  in the case of the board of
education of a central high school district on the regular business  day
next following such designated date.
  If the resolutions adopted by the trustees or boards of education of a
majority  of  the component school districts of the board of cooperative
educational services actually voting approve the  tentative  administra-
tive budget, the board of cooperative educational services may adopt the
tentative  administrative  budget without modification. If a majority of
the component school districts actually voting fail to adopt resolutions
approving such tentative administrative budget,  or  if  the  number  of
component  school  districts  approving  the budget equals the number of
school districts disapproving  the  budget,  the  board  of  cooperative
educational  services  shall prepare and adopt a contingency administra-
tive budget which shall not exceed  the  amount  of  the  administrative
budget of the board of cooperative educational services for the previous
school  year except to accommodate expenditure increases attributable to
supplemental retirement allowances  payable  pursuant  to  section  five
hundred  thirty-two  of  this  chapter  and section seventy-eight of the
retirement and social security law.  [For purposes of development  of  a
budget  for  the  nineteen hundred ninety-four--ninety-five school year,
each board  of  cooperative  educational  services  shall  separate  its
program, capital and administrative costs for the nineteen hundred nine-
ty-three--ninety-four  school  year  in  the  manner  prescribed  by the
commissioner, and] THE BOARD OF COOPERATIVE EDUCATIONAL  SERVICES  shall
NOT  BE  REQUIRED  TO submit [the resulting] ITS separate administrative
budget to the commissioner for approval. [Upon approval of  the  commis-
sioner, such separate administrative budget shall be deemed the adminis-
trative  budget of the board of cooperative educational services for the
nineteen hundred ninety-three--ninety-four school year.]
  S 13. Paragraph c of subdivision 4 of section 1950  of  the  education
law,  as  amended by chapter 301 of the laws of 1996, is amended to read
as follows:
  c. Make or cause to be made surveys to determine the need for  cooper-
ative  educational  services in the supervisory district and present the

A. 7340--B                         11

findings of their surveys to local school  authorities.  Each  board  of
cooperative  educational services shall prepare long range program plans
to meet the projected need for such cooperative educational services  in
the  supervisory district for the next five years as may be specified by
the commissioner, and shall [submit] KEEP  ON  FILE  AND  AVAILABLE  FOR
PUBLIC  INSPECTION  AND REVIEW BY THE COMMISSIONER such plans and there-
after annual revisions of such plans [to the commissioner] on or  before
the  first  day of December of each year, [except that special education
and career education program plans, in a form specified by  the  commis-
sioner, shall be submitted every two years, no later than the date spec-
ified  by  the  commissioner,  and  revised annually] PROVIDED THAT SUCH
PLANS MAY BE  INCORPORATED  INTO  A  BOARD  OF  COOPERATIVE  EDUCATIONAL
SERVICES DISTRICT-WIDE COMPREHENSIVE PLAN.
  S 14. Subparagraph 2-a of paragraph d of subdivision 4 of section 1950
of the education law is REPEALED.
  S 15. Subparagraphs 3 and 4 of paragraph d of subdivision 4 of section
1950  of  the  education  law,  as amended by chapter 474 of the laws of
1996, are amended to read as follows:
  (3) Requests for shared services;  operating  plan;  required  notice.
Requests  for  such  shared  services shall be filed by component school
districts with the board of cooperative educational services  not  later
than the first day of February of each year, provided that such requests
shall  not  be  binding upon the component school district. The board of
cooperative educational services shall submit its proposed annual  oper-
ating  plan  for  the ensuing school year to the department for approval
not later than the fifteenth day of February of each  year.  Such  board
shall,  through  its  executive  officer,  notify  each component school
district on or before the tenth day of  March  concerning  the  services
[which] THAT have been approved by the commissioner to be made available
for  the  ensuing  school  year.  Such  notice shall set forth the local
uniform cost of each such service,  based  on  (i)  anticipated  partic-
ipation in the ensuing school year, or (ii) participation in the current
year,  or  (iii)  a two or three year average including participation in
the current year, which unit cost shall be the same for all  participat-
ing  component  districts  and shall be based upon a uniform methodology
approved annually by at least three-quarters of the participating compo-
nent school districts after consultation by local school officials  with
their  respective  boards[;  provided,  however, such unit cost shall be
subject to final adjustment for programs for students with  disabilities
based  on  actual  participation  in  accordance with regulations of the
commissioner.  Notwithstanding the determination of  the  local  uniform
unit  cost  methodology selected in accordance with this paragraph, each
board of cooperative education services shall  annually  report  to  the
commissioner the budgeted unit cost and, when available, the actual unit
cost  of  such  programs and services, in accordance with both the local
uniform unit cost methodology and a statewide uniform unit cost  method-
ology  prescribed  by the commissioner by regulation, where the budgeted
statewide unit cost shall be based on the anticipated  participation  in
the  ensuing  year  and the actual statewide unit cost shall be based on
actual participation through the end of each year].
  (4) Contracts for shared services; allocation of costs. Each component
school district shall on or before the first day of May  following  such
notification notify the board of cooperative educational services of its
intention  to  participate or not to participate in such shared services
and the specific services which such district elects  to  utilize.  Each
participating  component  school  district  shall be required to pay the

A. 7340--B                         12

board of cooperative educational services for the cost of  the  services
set  forth in such notification, except for adjustments caused by subse-
quent unanticipated changes in the district's enrollment. The  board  of
cooperative  educational  services  shall  enter into contracts with its
component school districts for such requested services. A copy  of  each
executed contract for such purpose shall be [filed with the commissioner
by]  ON  FILE  WITH  the  board  of cooperative educational services AND
AVAILABLE FOR PUBLIC INSPECTION UPON REQUEST on or prior  to  the  first
day  of August of each year. Notwithstanding the provisions of paragraph
b of this subdivision, any component  school  district  which  does  not
elect  to  participate in any such specific cooperative services author-
ized under this paragraph shall not be required to pay any share of  the
moneys provided in the budget as salaries of teachers or other personnel
employed  in providing such service, for equipment and supplies for such
service or for transportation of pupils to and from the place where such
service is maintained. Provided, further, that a  board  of  cooperative
educational services may allocate the cost of such services to component
school districts in accordance with terms agreed upon between such board
and  three-quarters  of  the  boards  of education and trustees of local
school districts participating in the service.
  S 16. Paragraph aa of subdivision 4 of section 1950 of  the  education
law,  as added by chapter 595 of the laws of 1978, is amended to read as
follows:
  aa. Notwithstanding any other provision of law, a board of cooperative
educational services may[,  with  the  prior  written  approval  of  the
commissioner,] contract to accept from a leasing company which has qual-
ified as lowest bidder pursuant to the provisions of the general munici-
pal  law a sum sufficient to purchase data processing equipment from the
manufacturer thereof, pay such sum to the manufacturer  of  said  equip-
ment, receive the equipment and title thereto and convey the same to the
leasing  company  with  a  simultaneous lease of the equipment from such
leasing company to the board of cooperative educational services  for  a
specified  period of years. Before any such agreement shall be executed,
the board of cooperative educational services shall adopt  a  resolution
determining that such agreement is in the best financial interest of the
board. Such lease may be renewed for a further specified period of years
[with the prior approval of the commissioner of education].
  S  17.  Paragraph kk of subdivision 4 of section 1950 of the education
law, as added by section 13 of part A of chapter  436  of  the  laws  of
1997, is amended to read as follows:
  kk.  For  the  nineteen hundred ninety-seven--ninety-eight school year
and thereafter, the board of cooperative  educational  services  (BOCES)
shall  prepare  a  BOCES  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  administrative  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 board  of
cooperative  educational  services,  on a school by school or program by
program basis, and measures of the fiscal performance of the supervisory
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 boards of cooperative  educational  services.
Such  report  card  shall include[, at a minimum, any information of the
board of cooperative educational services  regarding  pupil  performance

A. 7340--B                         13

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.
  S  18.  Subdivision 2 of section 2201 of the education law, as amended
by chapter 295 of the laws of 1993, is amended to read as follows:
  2. Whenever a vacancy hereafter  occurs  in  the  office  of  district
superintendent  of  schools  in any supervisory district or whenever the
commissioner receives a letter of resignation  from  a  district  super-
intendent,  the  commissioner [shall] MAY survey the field in the county
where the vacancy occurred, and if it shall find that the continuance of
the number of supervisory districts then existing is no longer necessary
to serve adequately the educational interests of the county  he  or  she
shall  be authorized to conduct a study to examine the possible reorgan-
ization of such supervisory district if no such study has been conducted
within five years.
  S 19. Subdivision 5 of section 2802 of the education law, as added  by
chapter 181 of the laws of 2000, is amended to read as follows:
  5.  By  [January]  APRIL  first  of  each year, the commissioner shall
report to the governor, the legislature and the regents  concerning  the
prevalence  of violence and disruptive incidents in the public schools[,
and the effectiveness of school programs undertaken to  reduce  violence
and  assure  the  safety and security of students and school personnel].
The report shall summarize the information available from  the  incident
reporting  system,  and  [identify  specifically  the schools and school
districts with the least and greatest incidence of violent  and  disrup-
tive  incidents,  and  the least and most improvement since the previous
year or years] COMPARE THE INCIDENCE OF VIOLENT AND DISRUPTIVE INCIDENTS
OF SCHOOLS AND SCHOOL DISTRICTS AND BOARDS WITH OTHER SCHOOLS AND SCHOOL
DISTRICTS AND BOARDS BASED ON SIMILARITY IN SIZE AND  GRADE  LEVELS  AND
OTHER  CHARACTERISTICS,  INCLUDING STUDENT NEED AND RESOURCES, AS DETER-
MINED BY THE COMMISSIONER. [The report shall also, to the extent  possi-
ble,  relate  the  results available from the incident reporting system,
together with such other analysis and information  as  the  commissioner
determines is appropriate, to the effectiveness of school violence meas-
ures undertaken by participating schools and school districts, including
the  school  codes  and school safety plans required by sections twenty-
eight hundred one and twenty-eight hundred one-a of this article.]
  S 20. Paragraph b of subdivision 8 of section 3602  of  the  education
law,  as  amended  by  section 16 of part B of chapter 57 of the laws of
2007, is amended to read as follows:
  b. District plans of service. Any school district receiving  an  addi-
tional  apportionment  pursuant  to  subdivision ten of this section for
pupils in career education programs or a payment in lieu of such  appor-
tionment  or having a public excess cost aid setaside pursuant to subdi-
vision four of this section shall keep on file and  make  available  for
public  inspection  and review by the commissioner an acceptable plan of
service describing the student outcomes expected from implementation  of
the  proposed  plan,  provided that such plan may be incorporated into a
school district's district-wide comprehensive plan. The plan of  service
[submitted  by]  OF a school district receiving an additional apportion-
ment pursuant to this section for pupils with  disabilities  shall  also
describe  how  such  district  intends  to ensure that all instructional
materials to be used in the schools of such district will be made avail-
able in a usable alternative format for each student with  a  disability
and for each student who is a qualified individual with a disability, at

A. 7340--B                         14

the same time as such instructional materials are available to non-disa-
bled  students, provided that such plan may incorporate by reference the
alternative format plans developed pursuant to subdivision twenty-nine-a
of section sixteen hundred four, subdivision four-a of section seventeen
hundred  nine,  subdivision seven-a of section twenty-five hundred three
or subdivision seven-a of section twenty-five hundred fifty-four of this
chapter. Such plans shall be in a form prescribed by  the  commissioner,
and  except as heretofore provided, shall have the content prescribed by
the commissioner. The commissioner  may,  from  time  to  time,  require
amendments  of  such  plans as deemed to be necessary and appropriate to
further the educational welfare of the pupils involved.
  S 21. Paragraph f of subdivision 11 of section 3602 of  the  education
law,  as added by chapter 82 of the laws of 1995 and such subdivision as
renumbered by section 15 of part B of chapter 57 of the laws of 2007, is
amended to read as follows:
  f. Approved  plan  of  service  and  program  evaluation.  All  school
districts  and  BOCES desiring to operate an aidable program pursuant to
this subdivision shall complete [a comprehensive  plan  of  service]  AN
application,  including a budget by program component[, together with an
evaluation of the effectiveness of program components offered during the
most recent July first through March thirtieth, if  any].  Such  [evalu-
ation and plan] APPLICATION shall be in a form prescribed by the commis-
sioner  and shall be submitted not later than [forty-five days after the
provisions of this paragraph shall have become law, and not later  than]
May  fifteenth  in [subsequent] EACH school [years] YEAR.  Within forty-
five days of such deadline, and upon evaluation  of  such  applications,
the  commissioner  shall  notify  school  districts  and  BOCES of those
portions of such [plan of service] APPLICATION that will be  aidable  in
the school year ahead after making a determination that approval of such
[programs]  APPLICATION  will  assure  maximum effectiveness, geographic
availability and lack of  duplication  of  such  programs,  support  for
educational initiatives, and compliance with required program and fiscal
reporting  requirements. No aid shall be payable pursuant to this subdi-
vision unless the [program] APPLICATION is approved by the commissioner.
  S 22. Paragraph d of subdivision 26-a of section 3602 of the education
law is REPEALED.
  S 23. Subdivision 13  of  section  3602-e  of  the  education  law  is
REPEALED.
  S  24.  Section  3635  of the education law is amended by adding a new
subdivision 8 to read as follows:
  8. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR REGULATION,  IN
SCHOOL  DISTRICTS  HAVING  AN AREA OF FORTY SQUARE MILES OR LESS, IF THE
BOARD OF EDUCATION DETERMINES, BASED UPON HISTORY AND  EXPERIENCE,  THAT
THERE IS A CONSISTENT PATTERN OF ELIGIBLE PUPILS NOT USING THE TRANSPOR-
TATION PROVIDED BY THE DISTRICT, THE BOARD, IN ITS DISCRETION, MAY ENACT
A POLICY TO PROVIDE STUDENT TRANSPORTATION BASED UPON PATTERNS OF ACTUAL
RIDERSHIP  WITHOUT  REGARD  TO:   A. THE NUMBER OF STUDENTS ELIGIBLE FOR
TRANSPORTATION; AND B. THE NUMBER  OF  SEATS  THAT  WOULD  OTHERWISE  BE
REQUIRED FOR THEM UNDER PARAGRAPH A OF SUBDIVISION ONE OF THIS SECTION.
  S  25.  The  tax law is amended by adding a new section 178 to read as
follows:
  S 178. "MIDDLE CLASS STAR" REBATE PROGRAM. 1. THE  COMMISSIONER  SHALL
ISSUE  THE  LOCAL  PROPERTY  TAX  REBATES AUTHORIZED BY SECTION THIRTEEN
HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW. FOR PURPOSES OF THIS SECTION
THE REBATE SHALL BE CALCULATED USING THE COMPUTATION FORMULA  SET  FORTH

A. 7340--B                         15

IN SUBDIVISION THREE OF SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROP-
ERTY TAX LAW.
  2.  ON  OR  BEFORE  AUGUST  FIFTEENTH, TWO THOUSAND NINE AND EACH YEAR
THEREAFTER, THE EXECUTIVE  DIRECTOR  OF  THE  OFFICE  OF  REAL  PROPERTY
SERVICES,  OR HIS OR HER DESIGNEE, OR ON OR BEFORE JULY FIRST, TWO THOU-
SAND NINE AND EACH YEAR THEREAFTER IN THE CASE OF A CITY  WITH  A  POPU-
LATION  OF  ONE  MILLION  OR  MORE,  THE  COMMISSIONER OF FINANCE, SHALL
PROVIDE TO THE COMMISSIONER A REPORT  IN  A  MUTUALLY  AGREEABLE  FORMAT
CONCERNING THOSE PARCELS WHICH SATISFY THE CRITERIA SET FORTH IN SECTION
THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW.
  3.  THE  COMMISSIONER IN CONSULTATION WITH THE OFFICE OF REAL PROPERTY
SERVICES AND IN THE CASE OF A CITY WITH A POPULATION OF ONE  MILLION  OR
MORE,  THE  COMMISSIONER OF FINANCE, IS AUTHORIZED TO DEVELOP PROCEDURES
NECESSARY TO PROVIDE FOR THE ISSUANCE OF LOCAL PROPERTY TAX  REBATES  TO
QUALIFYING  PROPERTY  OWNERS,  AND THOSE QUALIFYING PROPERTY OWNERS THAT
DID NOT RECEIVE THEM INITIALLY. IF THE  COMMISSIONER  IS  NOT  SATISFIED
THAT  THE PROPERTY OWNER IS QUALIFIED FOR THE LOCAL PROPERTY TAX REBATE,
THE COMMISSIONER SHALL NOT ISSUE SUCH REBATE.
  4. WHEN THE PROPER PAYMENT OF A TAX REBATE UNDER THIS SECTION  DEPENDS
UPON  CONSTRUCTION  OF THE MEANING OF THE PROVISIONS OF SECTION THIRTEEN
HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW (AND ANY  RELATED  PROVISIONS
OF  SUCH LAW) OR INTERPRETATION OF THE TERMS CONTAINED THEREIN, IT SHALL
BE THE RESPONSIBILITY OF THE STATE BOARD OF REAL  PROPERTY  SERVICES  TO
PROVIDE TO THE DEPARTMENT THE CONSTRUCTION OR INTERPRETATION OF ANY SUCH
PROVISIONS OR TERMS.
  5.  BY DEPOSITING A REBATE ISSUED PURSUANT TO THIS SECTION AND AUTHOR-
IZED BY SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW, THE
PAYEE IS CERTIFYING THAT HE OR SHE IS THE PROPERTY OWNER, AND  THAT  THE
PRIMARY  RESIDENCE  OF  SUCH PROPERTY OWNER IS NOT SUBJECT TO ANY DELIN-
QUENT SCHOOL TAXES.
  6. VERIFICATION OF "AFFILIATED INCOME" FOR "MIDDLE CLASS STAR"  REBATE
PROGRAM.  (A) GENERALLY. THE DETERMINATION OF THE "AFFILIATED INCOME" OF
PARCELS FOR PURPOSES OF  THE  "MIDDLE  CLASS  STAR"  REBATE  PROGRAM  AS
AUTHORIZED BY SUBDIVISION THREE OF SECTION THIRTEEN HUNDRED SIX-B OF THE
REAL PROPERTY TAX LAW SHALL BE MADE AS PROVIDED BY THIS SECTION.
  (B) FOR PURPOSES OF THIS SUBDIVISION, THE TERM "INCOME" SHALL HAVE THE
SAME  MEANING  AS  SET  FORTH  IN  SUBPARAGRAPH (II) OF PARAGRAPH (B) OF
SUBDIVISION FOUR OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPER-
TY TAX LAW. THE TERM "AFFILIATED INCOME" SHALL MEAN THE COMBINED  INCOME
OF  ALL OF THE OWNERS OF THE PARCEL WHO RESIDED PRIMARILY THEREON ON THE
TAXABLE STATUS DATE FOR THE ASSESSMENT ROLL USED TO GENERATE THE  APPLI-
CABLE  SCHOOL  TAX  BILLS,  AND OF ANY OWNERS' SPOUSES FILING JOINTLY OR
SPOUSES' RESIDING PRIMARILY THEREON IN  THE  CASES  OF  SPOUSES'  FILING
SEPARATE  RETURNS ON SUCH TAXABLE STATUS DATE AND SHALL BE DETERMINED AS
FOLLOWS:
  (I) FOR THE TWO THOUSAND NINE--TWO THOUSAND TEN  SCHOOL  YEAR,  AFFIL-
IATED INCOME SHALL BE DETERMINED BASED UPON THE PARTIES' INCOMES FOR THE
INCOME  TAX  YEAR ENDING IN TWO THOUSAND SEVEN. IN EACH SUBSEQUENT YEAR,
THE APPLICABLE INCOME TAX YEAR SHALL BE ADVANCED BY ONE YEAR.
   (II) THE DEPARTMENT SHALL DETERMINE THE AFFILIATED  INCOME  FOR  EACH
PARCEL  AND SHALL ASSIGN A REBATE AMOUNT FOR EACH PARCEL BASED UPON SUCH
DETERMINATION. IN ANY CASE WHERE AFFILIATED INCOME CANNOT BE DETERMINED,
A REBATE SHALL NOT BE ISSUED.
  7. NOTIFICATION REQUIREMENT. THE  DEPARTMENT  SHALL  MAIL  INFORMATION
CONCERNING  THE  "MIDDLE CLASS STAR" REBATE PROGRAM TO OWNERS OF PARCELS
RECEIVING A BASIC STAR EXEMPTION ON THE ASSESSMENT ROLL USED TO GENERATE

A. 7340--B                         16

THE TWO THOUSAND NINE--TWO THOUSAND TEN SCHOOL TAX BILL. SUCH  NOTIFICA-
TION  SHALL EXPLAIN THAT PROPERTY OWNERS MUST FILE APPLICATIONS WITH THE
DEPARTMENT IN ORDER TO OBTAIN THE REBATE  AVAILABLE  UNDER  THE  "MIDDLE
CLASS  STAR"  REBATE  PROGRAM.  SUCH NOTICE SHALL FURTHER EXPLAIN HOW TO
OBTAIN THE APPLICATION.
  8. APPLICATIONS. (A) IN ORDER TO OBTAIN THE BENEFITS  OF  THE  "MIDDLE
CLASS  STAR"  REBATE PROGRAM, THE PROPERTY OWNER MUST SUBMIT AN APPLICA-
TION TO THE DEPARTMENT NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND
NINE. THE APPLICANT SHALL PROVIDE THE DEPARTMENT WITH  SUCH  INFORMATION
AS  MAY  BE  NECESSARY  TO DETERMINE THE PARCEL'S AFFILIATED INCOME. THE
PERSONS OTHER THAN THE APPLICANT WHOSE  INCOMES  ARE  NECESSARY  TO  THE
DETERMINATION  OF THE PARCEL'S AFFILIATED INCOME SHALL BE REFERRED TO IN
THIS SECTION AS "AFFILIATED PERSONS." RECIPIENTS OF  THE  ENHANCED  STAR
EXEMPTION SHALL NOT FILE AN APPLICATION TO RECEIVE A REBATE. THE DEPART-
MENT SHALL MAIL ENHANCED STAR REBATE RECIPIENTS THEIR REBATES IN A TIME-
LY MANNER.
  (B)  IF  THE  APPLICANT OR ANY AFFILIATED PERSONS WERE NOT REQUIRED TO
FILE NEW YORK STATE INCOME TAX RETURNS FOR THE TWO THOUSAND SEVEN INCOME
TAX YEAR BECAUSE THEIR INCOMES WERE BELOW THE  THRESHOLD  THAT  NECESSI-
TATED SUCH FILING, THE APPLICATION SHALL SO INDICATE.
  (C)  IF  THE  APPLICANT OR ANY AFFILIATED PERSONS WERE NOT REQUIRED TO
FILE NEW YORK STATE INCOME TAX RETURNS FOR THE TWO THOUSAND SEVEN INCOME
TAX YEAR BECAUSE THEY DID NOT RESIDE IN NEW YORK STATE IN  SUCH  TAXABLE
YEAR, THE APPLICATION SHALL SO INDICATE. SUCH PERSONS SHALL PROVIDE WITH
THE APPLICATION ANY INFORMATION THAT THE DEPARTMENT DETERMINES IS NECES-
SARY TO CALCULATE THE PARCEL'S AFFILIATED INCOME UNDER THE "MIDDLE CLASS
STAR" REBATE PROGRAM.
  (D)  AFTER TWO THOUSAND NINE, APPLICATIONS SHALL BE REQUIRED ONLY WHEN
A NEW APPLICATION FOR A BASIC STAR EXEMPTION FOR REAL PROPERTY  TAXATION
IS  FILED PURSUANT TO SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROP-
ERTY TAX LAW, OR WHEN THERE IS A CHANGE  OF  OWNERSHIP  WHICH  DOES  NOT
NECESSITATE  THE FILING OF A NEW APPLICATION FOR A BASIC STAR EXEMPTION.
IN EITHER INSTANCE, AN APPLICATION SHALL BE SUBMITTED TO THE  DEPARTMENT
ON A TIMELY BASIS.
  (E)  IF  AN  APPLICATION  FOR A "MIDDLE CLASS STAR" REBATE IS RECEIVED
AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND NINE,  AN  OTHERWISE  ELIGIBLE
PROPERTY  OWNER  SHALL NOT RECEIVE A REBATE FOR SUCH YEAR. HOWEVER, SUCH
APPLICATION SHALL BE CONSIDERED TIMELY FILED FOR A REBATE IN  SUBSEQUENT
YEARS PROVIDED THE OWNERSHIP OF THE PARCEL REMAINS UNCHANGED.
  9.  PROCESSING  OF APPLICATIONS. (A) AFTER RECEIVING A TIMELY APPLICA-
TION, THE DEPARTMENT SHALL ATTEMPT TO DETERMINE THE AFFILIATED INCOME OF
THE PARCEL AND THE REBATE AMOUNT TO WHICH THE  PARCEL  IS  ENTITLED,  IF
ANY.
  (B)  IN  THE CASE OF AN APPLICATION WHICH INDICATES THAT THE APPLICANT
AND ANY AFFILIATED PERSONS WERE NOT REQUIRED  TO  FILE  NEW  YORK  STATE
INCOME  TAX  RETURNS  FOR THE TWO THOUSAND SEVEN INCOME TAX YEAR BECAUSE
THEIR INCOMES WERE BELOW THE THRESHOLD WHICH NECESSITATED THE FILING  OF
A STATE INCOME TAX RETURN, THE DEPARTMENT MAY, SUBJECT TO AUDIT, ISSUE A
REBATE  EQUAL  TO  THE HIGHEST AMOUNT AVAILABLE FOR THAT SCHOOL DISTRICT
SEGMENT.
  (C) IN THE CASE OF AN APPLICATION WHICH INDICATES THAT  THE  APPLICANT
AND  ANY  AFFILIATED  PERSONS  WERE  NOT REQUIRED TO FILE NEW YORK STATE
INCOME TAX RETURNS FOR THE TWO THOUSAND SEVEN INCOME  TAX  YEAR  BECAUSE
THEY  DID  NOT RESIDE IN NEW YORK STATE IN SUCH TAXABLE YEAR, THE APPLI-
CANT SHALL PROVIDE SUCH INFORMATION REGARDING INCOME AS IS REQUESTED  BY
THE  DEPARTMENT.  THE  DEPARTMENT  SHALL  ISSUE  A REBATE BASED UPON THE

A. 7340--B                         17

INFORMATION PROVIDED BY THE APPLICANT AND ANY OTHER INFORMATION TO WHICH
THE DEPARTMENT MAY HAVE ACCESS CONCERNING THE INCOME OF SUCH  PERSON  OR
PERSONS.
  10.  RECONSIDERATION  OF REBATE AMOUNT. IN THE EVENT THE DEPARTMENT IS
UNABLE TO DETERMINE THE AFFILIATED INCOME FOR A PARCEL OR THE DEPARTMENT
DETERMINES THAT A REBATE SHALL NOT BE ISSUED FOR A PARCEL,  THE  DEPART-
MENT  SHALL NOTIFY THE APPLICANT OF THAT FACT. A PROPERTY OWNER MAY SEEK
RECONSIDERATION OF THE REBATE AMOUNT DETERMINATION FOR HIS OR HER PARCEL
ON THE GROUNDS THAT THE PARCEL'S AFFILIATED INCOME WAS DETERMINED  ERRO-
NEOUSLY. A PROPERTY OWNER MAY ALSO SEEK RECONSIDERATION IF NO REBATE WAS
ISSUED  BECAUSE  THE  PARCEL'S  AFFILIATED  INCOME  WAS UNDETERMINED. AN
APPLICATION FOR RECONSIDERATION OF REBATE AMOUNT  SHALL  BE  MADE  IN  A
MANNER  PRESCRIBED  BY  THE DEPARTMENT, AND SHALL BE ACCOMPANIED BY SUCH
DOCUMENTATION AS THE DEPARTMENT MAY REQUIRE. SUCH APPLICATION  SHALL  BE
FILED NO LATER THAN MARCH THIRTY-FIRST, TWO THOUSAND TEN. IF THE DEPART-
MENT  FINDS  AFTER  REVIEWING SUCH AN APPLICATION THAT THE REBATE AMOUNT
DETERMINATION FOR A PARCEL  SHOULD  BE  CORRECTED,  IT  SHALL  ISSUE  AN
AMENDED OR INITIAL REBATE CHECK. IF THE DEPARTMENT FINDS AFTER REVIEWING
SUCH  AN APPLICATION THAT THE REBATE AMOUNT DETERMINATION FOR THE PARCEL
WAS CORRECTLY DETERMINED, IT SHALL SO NOTIFY THE APPLICANT. SUCH NOTIFI-
CATION SHALL INCLUDE AN EXPLANATION OF THE DEPARTMENT'S FINDINGS,  INDI-
CATE  THAT  THE  APPLICANT  HAS  THE RIGHT TO A PROCEEDING UNDER ARTICLE
SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW  AND  RULES,  AND  INDICATE  THE
STATUTE  OF  LIMITATIONS  ASSOCIATED WITH SUCH PROCEEDINGS. SUCH FINDING
SHALL BE SUBJECT TO REVIEW PURSUANT ONLY TO A PROCEEDING  UNDER  ARTICLE
SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES.
  11.  SPECIAL  PROVISIONS  RELATING TO CO-OPERATIVE APARTMENT UNITS AND
MOBILE HOMES. THE DEPARTMENT'S DETERMINATION OF AFFILIATED INCOME  SHALL
BE MADE WITH RESPECT TO THE TENANT-SHAREHOLDERS OR OWNERS OF THE UNIT IN
QUESTION RATHER THAN OF THE PARCEL.
  12.  SUBSEQUENT  YEARS.  IN EACH YEAR SUBSEQUENT TO TWO THOUSAND NINE,
AFFILIATED INCOMES SHALL CONTINUE TO BE DETERMINED AS PROVIDED  BY  THIS
SECTION  FOR  PURPOSES OF THE "MIDDLE CLASS STAR" REBATE PROGRAM, EXCEPT
THAT:
  (A) THE NOTIFICATION REQUIREMENT OF SUBDIVISION SEVEN OF THIS  SECTION
SHALL NOT BE APPLICABLE;
  (B)  APPLICATIONS  SHALL  BE  REQUIRED ONLY AS PROVIDED IN SUBDIVISION
EIGHT OF THIS SECTION; AND
  (C) IN EACH SUBSEQUENT YEAR, THE APPLICABLE INCOME TAX YEAR FOR DETER-
MINATIONS UNDER THIS SECTION SHALL  BE  ADVANCED  ONE  YEAR.  ALL  OTHER
APPLICABLE  DATES  AND  DEADLINES WHICH REFERENCE A DATE IN TWO THOUSAND
NINE SHALL BE ADVANCED AND SHALL BE DEEMED TO REFERENCE  DATES  IN  THAT
SUBSEQUENT  YEAR, EXCEPT THAT APPLICATIONS FOR RECONSIDERATION OF REBATE
AMOUNT  DETERMINATIONS  SHALL  BE  SUBMITTED   NO   LATER   THAN   MARCH
THIRTY-FIRST OF THE ENSUING YEAR.
  13.  CONFIDENTIAL  INFORMATION;  DISCLOSURE  PROHIBITION.  INFORMATION
REGARDING REBATES ISSUED TO INDIVIDUALS SHALL NOT BE SUBJECT TO  DISCLO-
SURE;  INCLUDING  NAMES,  ADDRESSES,  AND DOLLAR AMOUNTS OF REBATES.  IN
ADDITION, ALL APPLICATIONS SUBMITTED FOR REBATES SHALL NOT BE SUBJECT TO
DISCLOSURE.
  14. DEADLINE. IF ANY APPLICABLE DEADLINE SHALL  FALL  ON  A  SATURDAY,
SUNDAY  OR  LEGAL  HOLIDAY,  SUCH DEADLINE SHALL BE ADVANCED TO THE NEXT
BUSINESS DAY.
  15. AFFILIATED INCOME BRACKETS; INDEXING. THE DEPARTMENT SHALL  ESTAB-
LISH  THE  AFFILIATED  INCOME  BRACKETS TO BE ASSOCIATED WITH THE REBATE
AMOUNTS FOR THE TWO THOUSAND TWELVE--TWO THOUSAND THIRTEEN  SCHOOL  YEAR

A. 7340--B                         18

AND  EACH  SCHOOL  YEAR  THEREAFTER BY APPLYING THE INFLATION FACTOR SET
FORTH IN THIS SUBDIVISION TO THE FIGURES THAT DEFINED THE INCOME  BRACK-
ETS THAT WERE APPLICABLE TO THE TWO THOUSAND ELEVEN--TWO THOUSAND TWELVE
SCHOOL  YEAR,  AND  ROUNDING  EACH RESULT TO THE NEAREST MULTIPLE OF ONE
HUNDRED DOLLARS.   FOR PURPOSES  OF  THIS  SUBDIVISION,  THE  "INFLATION
FACTOR"  FOR  EACH  INCOME BRACKET SHALL BE DETERMINED BY THE PERCENTAGE
INCREASE IN THE CONSUMER PRICE INDEX FOR URBAN WAGE EARNERS AND CLERICAL
WORKERS (CPI-W) PUBLISHED BY THE  UNITED  STATES  DEPARTMENT  OF  LABOR,
BUREAU  OF  LABOR STATISTICS, FOR THE THIRD QUARTER OF THE CALENDAR YEAR
PRECEDING THE APPLICABLE SCHOOL YEAR, AS COMPARED TO THE  THIRD  QUARTER
OF  THE  PRIOR  CALENDAR  YEAR. IF A BASE FIGURE AS SO DETERMINED IS NOT
EXACTLY EQUAL TO A MULTIPLE OF ONE HUNDRED DOLLARS, IT SHALL BE  ROUNDED
TO  THE  NEAREST  MULTIPLE  OF  ONE  HUNDRED DOLLARS. IN EACH SUBSEQUENT
SCHOOL YEAR, THE PRIOR YEAR'S INCOME BRACKETS SHALL BE INDEXED USING THE
ABOVE FORMULA WITH EACH YEAR ADVANCED BY ONE YEAR.
  16. BEGINNING IN FISCAL YEAR TWO THOUSAND  TEN--TWO  THOUSAND  ELEVEN,
THE  DEPARTMENT  SHALL DETERMINE WHICH PROGRAM PROVIDES A LARGER BENEFIT
TO A TAXPAYER, THE "MIDDLE CLASS STAR"  REBATE  PROGRAM  IMPLEMENTED  BY
SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW OR THE MAXI-
MUM RESIDENTIAL SCHOOL TAX CREDIT AUTHORIZED PURSUANT TO SUBSECTION (QQ)
OF  SECTION  SIX  HUNDRED SIX OF THIS CHAPTER, AND SHALL ENSURE THAT THE
TAXPAYER RECEIVES THAT AMOUNT OF BENEFIT IN ANY GIVEN TAXABLE YEAR.
  S 26. Subparagraph (E) of paragraph 1 of subsection (e) of section 606
of the tax law, as amended by chapter  105  of  the  laws  of  2006,  is
amended to read as follows:
  (E)  "Qualifying  real  property taxes" means all real property taxes,
special ad valorem levies and special assessments, exclusive  of  penal-
ties  and  interest, levied on the residence of a qualified taxpayer and
paid during the taxable year [less the credit claimed  under  subsection
(n-1)  of  this section]. In addition, for taxable years beginning after
December thirty-first, nineteen hundred eighty-four, a qualified taxpay-
er may elect to include any  additional  amount  that  would  have  been
levied in the absence of an exemption from real property taxation pursu-
ant to section four hundred sixty-seven of the real property tax law. If
tenant-stockholders  in  a  cooperative housing corporation have met the
requirements of section two hundred sixteen of the internal revenue code
by which they are allowed a deduction for real estate taxes, the  amount
of  taxes  so allowable, or which would be allowable if the taxpayer had
filed returns on a cash basis, shall be qualifying real property  taxes.
If  a  residence is owned by two or more individuals as joint tenants or
tenants in common, and one or more than one individual is not  a  member
of  the  household,  qualifying real property taxes is that part of such
taxes on the residence which reflects the ownership  percentage  of  the
qualified  taxpayer  and  members of his household. If a residence is an
integral part of a larger unit, qualifying real property taxes shall  be
limited  to  that  amount of such taxes paid as may be reasonably appor-
tioned to such residence. If a household owns and occupies two  or  more
residences during different periods in the same taxable year, qualifying
real  property  taxes  shall  be the sum of the prorated qualifying real
property taxes attributable to the household  during  the  periods  such
household  occupies  each  of such residences. If the household owns and
occupies a residence for part of the taxable year and rents a  residence
for  part of the same taxable year, it may include both the proration of
qualifying real property taxes on the residence owned and the real prop-
erty tax equivalent with respect to the months the residence is  rented.
Provided,  however,  for  purposes  of  the  credit  allowed  under this

A. 7340--B                         19

subsection, qualifying real property taxes may be included by  a  quali-
fied  taxpayer  only  to  the extent that such taxpayer or the spouse of
such taxpayer occupying such residence for six months  or  more  of  the
taxable year owns or has owned the residence and paid such taxes.
  S 27. Section 606 of the tax law is amended by adding a new subsection
(qq) to read as follows:
  (QQ)  MAXIMUM  RESIDENTIAL SCHOOL TAX CREDIT. (1) DEFINITIONS. FOR THE
PURPOSES OF THIS SUBSECTION:
  (A) "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE  WHO
OWNS THE RESIDENTIAL REAL PROPERTY IN WHICH HE OR SHE RESIDES.
  (B) "HOUSEHOLD" MEANS THE TAXPAYER OR TAXPAYERS AND ALL OTHER PERSONS,
NOT NECESSARILY RELATED, WHO ALL RESIDE IN THE RESIDENTIAL REAL PROPERTY
OWNED  BY  THE TAXPAYER OR TAXPAYERS, AND SHARE ITS FURNISHINGS, FACILI-
TIES AND ACCOMMODATIONS; PROVIDED THAT NO PERSON MAY BE A MEMBER OF MORE
THAN ONE HOUSEHOLD AT ONE TIME.
  (C) "HOUSEHOLD GROSS INCOME" MEANS THE AGGREGATE ADJUSTED GROSS INCOME
OF ALL MEMBERS OF THE HOUSEHOLD FOR THE TAXABLE  YEAR  AS  REPORTED  FOR
FEDERAL  INCOME  TAX  PURPOSES,  OR  WHICH WOULD BE REPORTED AS ADJUSTED
GROSS INCOME IF A FEDERAL INCOME TAX RETURN WERE REQUIRED TO  BE  FILED,
WITH  THE  MODIFICATIONS IN SUBSECTION (B) OF SECTION SIX HUNDRED TWELVE
OF THIS ARTICLE BUT WITHOUT THE MODIFICATIONS IN SUBSECTION (C) OF  SUCH
SECTION, PLUS ANY PORTION OF THE GAIN FROM THE SALE OR EXCHANGE OF PROP-
ERTY  OTHERWISE  EXCLUDED  FROM  SUCH AMOUNT; EARNED INCOME FROM SOURCES
WITHOUT THE UNITED  STATES  EXCLUDABLE  FROM  FEDERAL  GROSS  INCOME  BY
SECTION  NINE HUNDRED ELEVEN OF THE INTERNAL REVENUE CODE; SUPPORT MONEY
NOT INCLUDED IN  ADJUSTED  GROSS  INCOME;  NONTAXABLE  STRIKE  BENEFITS;
SUPPLEMENTAL  SECURITY  INCOME PAYMENTS; THE GROSS AMOUNT OF ANY PENSION
OR ANNUITY BENEFITS TO THE EXTENT NOT INCLUDED IN  SUCH  ADJUSTED  GROSS
INCOME  (INCLUDING, BUT NOT LIMITED TO, RAILROAD RETIREMENT BENEFITS AND
ALL PAYMENTS RECEIVED UNDER THE FEDERAL SOCIAL SECURITY ACT  AND  VETER-
ANS'  DISABILITY  PENSIONS); NONTAXABLE INTEREST RECEIVED FROM THE STATE
OF NEW YORK, ITS AGENCIES, INSTRUMENTALITIES,  PUBLIC  CORPORATIONS,  OR
POLITICAL  SUBDIVISIONS (INCLUDING A PUBLIC CORPORATION CREATED PURSUANT
TO AGREEMENT OR COMPACT WITH ANOTHER STATE OR CANADA); WORKERS'  COMPEN-
SATION;  THE GROSS AMOUNT OF "LOSS-OF-TIME" INSURANCE; AND THE AMOUNT OF
CASH PUBLIC ASSISTANCE AND RELIEF, OTHER THAN MEDICAL ASSISTANCE FOR THE
NEEDY, PAID TO OR FOR THE BENEFIT OF THE QUALIFIED TAXPAYER  OR  MEMBERS
OF  HIS  OR  HER  HOUSEHOLD.  HOUSEHOLD  GROSS  INCOME SHALL NOT INCLUDE
SURPLUS FOODS OR OTHER RELIEF IN KIND OR PAYMENTS  MADE  TO  INDIVIDUALS
BECAUSE  OF  THEIR  STATUS  AS VICTIMS OF NAZI PERSECUTION AS DEFINED IN
PUBLIC LAW 103-286. PROVIDED, FURTHER, HOUSEHOLD GROSS INCOME SHALL ONLY
INCLUDE ALL SUCH INCOME RECEIVED BY ALL MEMBERS OF THE  HOUSEHOLD  WHILE
MEMBERS  OF  SUCH  HOUSEHOLD.   FOR FARM FAMILIES EARNING AT LEAST FIFTY
PERCENT OF THEIR INCOME FROM FARMING, "ADJUSTED GROSS INCOME"  SHALL  BE
REPLACED  WITH "MODIFIED ADJUSTED GROSS INCOME" FOR FEDERAL TAX PURPOSES
AS REPORTED ON THE APPLICANT'S FEDERAL AND STATE INCOME TAX RETURNS  FOR
THE APPLICABLE INCOME TAX YEAR.
  (D)  "NET  SCHOOL TAX" MEANS THE SCHOOL TAXES ASSESSED ON THE RESIDEN-
TIAL REAL PROPERTY OWNED AND OCCUPIED BY THE TAXPAYER OR TAXPAYERS AFTER
ANY EXEMPTION OR ABATEMENT RECEIVED PURSUANT TO THE  REAL  PROPERTY  TAX
LAW.    SUCH  NET  SCHOOL TAX SHALL INCLUDE ANY SCHOOL TAXES ASSESSED ON
FARM DWELLINGS NOT OWNED BY THE RESIDENT IF  THE  LEGAL  TITLE  TO  SUCH
DWELLING IS HELD BY A PARTNERSHIP AND THE DWELLING SERVES AS THE PRIMARY
RESIDENCE  OF  ONE  OR  MORE  OF THE PARTNERS, OR IF LEGAL TITLE TO SUCH
DWELLING IS HELD BY AN S-CORPORATION  OR  BY  A  C-CORPORATION  AND  THE

A. 7340--B                         20

DWELLING SERVES AS THE PRIMARY RESIDENCE OF A SHAREHOLDER OF SUCH CORPO-
RATION.
  (2) CREDIT. A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE
TAXES  IMPOSED  BY  THIS ARTICLE, EQUAL TO SEVENTY PERCENT OF THE AMOUNT
WHICH THE TAXPAYER'S NET  SCHOOL  TAX  EXCEEDS  THE  TAXPAYER'S  MAXIMUM
SCHOOL TAX, AS DETERMINED BY PARAGRAPH THREE OF THIS SUBSECTION. IF SUCH
CREDIT  EXCEEDS  THE  TAX FOR SUCH TAXABLE YEAR, AS REDUCED BY THE OTHER
CREDITS PERMITTED BY THIS ARTICLE, THE QUALIFIED TAXPAYER  MAY  RECEIVE,
AND  THE  COMPTROLLER, SUBJECT TO A CERTIFICATE OF THE DEPARTMENT, SHALL
PAY AS AN OVERPAYMENT, WITHOUT INTEREST, ANY EXCESS BETWEEN SUCH TAX  AS
SO  REDUCED AND THE AMOUNT OF THE CREDIT. IF A QUALIFIED TAXPAYER IS NOT
REQUIRED TO FILE A RETURN PURSUANT TO SECTION SIX HUNDRED  FIFTY-ONE  OF
THIS  ARTICLE,  A  QUALIFIED  TAXPAYER  MAY NEVERTHELESS RECEIVE AND THE
COMPTROLLER, SUBJECT TO A CERTIFICATE OF THE DEPARTMENT, SHALL PAY AS AN
OVERPAYMENT THE FULL AMOUNT OF THE CREDIT, WITHOUT INTEREST.
  (3) MAXIMUM SCHOOL TAX. (A) A QUALIFIED TAXPAYER'S MAXIMUM SCHOOL  TAX
SHALL BE DETERMINED AS FOLLOWS:
  (I)  IN  THE  CITY  OF  NEW YORK, AND THE COUNTIES OF NASSAU, SUFFOLK,
ROCKLAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS:

       HOUSEHOLD GROSS INCOME                   MAXIMUM SCHOOL TAX

       ONE HUNDRED TWENTY THOUSAND              SIX PERCENT OF THE
       DOLLARS OR LESS                          HOUSEHOLD GROSS INCOME

       MORE THAN ONE HUNDRED                    SEVEN PERCENT OF
       TWENTY THOUSAND                          THE HOUSEHOLD
       DOLLARS, BUT                             GROSS INCOME
       LESS THAN OR EQUAL TO
       ONE HUNDRED SEVENTY-FIVE
       THOUSAND DOLLARS

       MORE THAN ONE HUNDRED                    EIGHT PERCENT OF
       SEVENTY-FIVE THOUSAND                    THE HOUSEHOLD
       DOLLARS, BUT LESS THAN                   GROSS INCOME
       OR EQUAL TO TWO HUNDRED
       FIFTY THOUSAND DOLLARS

       MORE THAN TWO HUNDRED                    NO LIMITATION.
       FIFTY THOUSAND
       DOLLARS
  (II) IN ALL OTHER COUNTIES IN THE STATE:

       HOUSEHOLD GROSS                          MAXIMUM SCHOOL
       INCOME                                   TAX

       NINETY THOUSAND                          SIX PERCENT OF THE
       DOLLARS OR LESS                          HOUSEHOLD GROSS INCOME

       MORE THAN NINETY                         SEVEN PERCENT OF
       THOUSAND DOLLARS, BUT                    THE HOUSEHOLD
       LESS THAN OR EQUAL TO                    GROSS INCOME
       ONE HUNDRED FIFTY
       THOUSAND DOLLARS

       MORE THAN ONE HUNDRED                    EIGHT PERCENT OF

A. 7340--B                         21

       FIFTY THOUSAND DOLLARS,                  THE HOUSEHOLD
       BUT LESS THAN OR EQUAL                   GROSS INCOME
       TO TWO HUNDRED FIFTY THOUSAND
       DOLLARS

       MORE THAN TWO HUNDRED FIFTY              NO LIMITATION.
       THOUSAND DOLLARS
  (B)  THE  THRESHOLDS OF HOUSEHOLD GROSS INCOME FOR ELIGIBILITY FOR THE
MAXIMUM SCHOOL TAX CREDIT, ESTABLISHED BY SUBPARAGRAPH (A) OF THIS PARA-
GRAPH, SHALL BE INDEXED FOR INFLATION.
  (4) EXCLUSIONS FROM ELIGIBILITY. NO CREDIT SHALL BE GRANTED UNDER THIS
SUBSECTION IF THE  QUALIFIED  TAXPAYER  CLAIMS  THE  REAL  PROPERTY  TAX
CIRCUIT  BREAKER  CREDIT,  PURSUANT  TO  SUBSECTION (E) OF THIS SECTION,
DURING THE TAXABLE YEAR.
  (5) FOR PURPOSES OF THIS SUBSECTION, IN THE CITIES OF BUFFALO, ROCHES-
TER, YONKERS, AND SYRACUSE, A TAXPAYER'S NET SCHOOL TAX SHALL BE  DETER-
MINED  BY  MULTIPLYING  SUCH  TAXPAYER'S TOTAL REAL PROPERTY TAX BILL BY
SIXTY-SEVEN PERCENT. IN THE CITY OF NEW YORK, A  TAXPAYER'S  NET  SCHOOL
TAX  SHALL BE DETERMINED BY MULTIPLYING SUCH TAXPAYER'S TOTAL REAL PROP-
ERTY TAX BILL BY FIFTY PERCENT.
  S 28. Subdivision 3 of section 97-rrr of the  state  finance  law,  as
amended  by  section  8 of part F of chapter 109 of the laws of 2006, is
amended to read as follows:
  3. The monies in such fund shall be appropriated for  school  property
tax  exemptions [and local property tax rebates] granted pursuant to the
real property tax law and [the tax law and payable pursuant  to  section
thirty-six  hundred nine of the education law,] for payments to the city
of New York pursuant to  section  fifty-four-f  of  this  chapter[,  and
pursuant to section one hundred seventy-eight of the tax law].
  S  29. The general municipal law is amended by adding a new section 25
to read as follows:
  S 25. FUNDING OF MANDATES. 1. DEFINITIONS. AS USED  IN  THIS  SECTION,
THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS UNLESS THE CONTEXT
SHALL OTHERWISE REQUIRE:
  (A) "MANDATE" MEANS:
  (I)  ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM OR
REQUIRES A HIGHER LEVEL OF SERVICE  FOR  AN  EXISTING  PROGRAM  WHICH  A
MUNICIPAL CORPORATION IS REQUIRED TO PROVIDE; OR
  (II)  ANY  GENERAL  LAW  WHICH  GRANTS A NEW PROPERTY TAX EXEMPTION OR
INCREASES AN EXISTING PROPERTY TAX EXEMPTION WHICH THE MUNICIPAL  CORPO-
RATION IS REQUIRED TO PROVIDE.
  (B) "UNFUNDED MANDATE" SHALL MEAN:
  (I)  ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM OR
REQUIRES A HIGHER LEVEL OF SERVICE  FOR  AN  EXISTING  PROGRAM  WHICH  A
MUNICIPAL  CORPORATION IS REQUIRED TO PROVIDE AND WHICH RESULTS IN A NET
ADDITIONAL COST TO THE MUNICIPAL CORPORATION;
  (II) ANY ALTERATION IN FUNDING PROVIDED TO A MUNICIPAL CORPORATION FOR
THE PURPOSE OF DEFRAYING THE COSTS OF A PROGRAM WHICH IT IS REQUIRED  TO
PROVIDE,  THEREBY  RESULTING  IN  A NET ADDITIONAL COST TO THE MUNICIPAL
CORPORATION; OR
  (III) ANY GENERAL LAW WHICH GRANTS A NEW  PROPERTY  TAX  EXEMPTION  OR
INCREASES  AN EXISTING PROPERTY TAX EXEMPTION WHICH THE MUNICIPAL CORPO-
RATION IS REQUIRED TO PROVIDE, THEREBY RESULTING  IN  A  NET  ADDITIONAL
COST TO THE MUNICIPAL CORPORATION.
  (C)  "NET  ADDITIONAL COST" MEANS THE COST OR COSTS INCURRED OR ANTIC-
IPATED TO BE INCURRED WITHIN A ONE YEAR PERIOD BY A LOCAL GOVERNMENT  IN

A. 7340--B                         22

PERFORMING  OR  ADMINISTERING  A MANDATE AFTER SUBTRACTING THEREFROM ANY
REVENUES RECEIVED OR RECEIVABLE BY THE LOCAL GOVERNMENT  ON  ACCOUNT  OF
THE MANDATED PROGRAM OR SERVICE, INCLUDING BUT NOT LIMITED TO:
  (I) FEES CHARGED TO THE RECIPIENTS OF THE MANDATED PROGRAM OR SERVICE;
  (II)  STATE  OR  FEDERAL  AID  PAID  SPECIFICALLY  OR CATEGORICALLY IN
CONNECTION WITH THE PROGRAM OR SERVICE; AND
  (III) AN OFFSETTING SAVINGS RESULTING FROM THE  DIMINUTION  OR  ELIMI-
NATION  OF  ANY  OTHER  PROGRAM  OR SERVICE DIRECTLY ATTRIBUTABLE TO THE
PERFORMANCE OR ADMINISTRATION OF THE MANDATED PROGRAM.
  2. FUNDING OF MUNICIPAL CORPORATION MANDATES. (A) NOTWITHSTANDING  ANY
OTHER  PROVISION  OF  LAW,  NO  UNFUNDED  MANDATE SHALL BE ENACTED WHICH
CREATES AN ANNUAL NET ADDITIONAL COST TO ANY  MUNICIPAL  CORPORATION  IN
EXCESS  OF  TEN  THOUSAND  DOLLARS OR AN AGGREGATE ANNUAL NET ADDITIONAL
COST TO ALL MUNICIPAL CORPORATIONS IN EXCESS OF ONE MILLION DOLLARS.
  (B) THERE SHALL BE NO NEW LEGISLATIVE OR REGULATORY  MANDATES  IMPOSED
ON  LOCAL  GOVERNMENTS  WITHOUT  A  COMPLETE  ACCOUNTING OF THE EXPECTED
FISCAL IMPACT ON  SUCH  LOCAL  GOVERNMENTS,  AND  SUCH  ACCOUNTING  MUST
INCLUDE  FULL  DOCUMENTATION,  INPUT  FROM  AFFECTED  MUNICIPALITIES AND
PROPOSED REVENUE SOURCES WITH WHICH TO FUND THE NEW MANDATE.
  3.  EXEMPTIONS  TO  THE  FUNDING  OF  MUNICIPAL  CORPORATION  MANDATES
REQUIREMENT.  (A)  THE  STATE  SHALL  NOT BE REQUIRED TO FUND ANY NEW OR
EXPANDED PROGRAMS IF:
  (I) THE MANDATE IS REQUIRED BY A COURT ORDER OR JUDGMENT;
  (II) THE MANDATE IS PROVIDED AT THE OPTION  OF  THE  LOCAL  GOVERNMENT
UNDER  A  LAW, REGULATION, RULE, OR ORDER THAT IS PERMISSIVE RATHER THAN
MANDATORY;
  (III) THE MANDATE RESULTS FROM THE PASSAGE  OF  A  HOME  RULE  MESSAGE
WHEREBY  A  LOCAL GOVERNMENT REQUESTS AUTHORITY TO IMPLEMENT THE PROGRAM
OR SERVICE SPECIFIED IN THE STATUTE, AND THE STATUTE IMPOSES COSTS  ONLY
UPON  THAT  LOCAL  GOVERNMENT WHICH REQUESTS THE AUTHORITY TO IMPOSE THE
PROGRAM OR SERVICE;
  (IV) THE MANDATE IS REQUIRED BY, OR ARISES FROM, AN EXECUTIVE ORDER OF
THE GOVERNOR EXERCISING HIS OR HER EMERGENCY POWERS; OR
  (V) THE MANDATE IS REQUIRED BY STATUTE OR EXECUTIVE ORDER THAT  IMPLE-
MENTS A FEDERAL LAW OR REGULATION AND RESULTS FROM COSTS MANDATED BY THE
FEDERAL GOVERNMENT TO BE BORNE AT THE LOCAL LEVEL, UNLESS THE STATUTE OR
EXECUTIVE  ORDER RESULTS IN COSTS WHICH EXCEED THE COSTS MANDATED BY THE
FEDERAL GOVERNMENT.
  (B) EACH ACT ESTABLISHING A MANDATE SHALL PROVIDE THAT  THE  EFFECTIVE
DATE  OF  ANY  SUCH  MANDATE  IMPOSED ON MUNICIPAL CORPORATIONS SHALL BE
CONSISTENT WITH THE NEEDS OF THE STATE  AND  MUNICIPAL  CORPORATIONS  TO
PLAN  IMPLEMENTATION  THEREOF  AND  CONSISTENT  WITH THE AVAILABILITY OF
REQUIRED FUNDS.
  S 30. Subparagraph 2 of paragraph d of subdivision 4 of  section  1950
of the education law is REPEALED.
  S 31. Subdivision 4 of section 1950 of the education law is amended by
adding a new paragraph oo to read as follows:
  OO.   (1) FORM HEALTH INSURANCE TRUSTS WITH COMPONENT SCHOOL DISTRICTS
OR DISTRICTS OF CHILDREN WHO RESIDE  WITHIN  THE  BOARD  OF  COOPERATIVE
EDUCATIONAL SERVICES TO PURCHASE AND ADMINISTER EMPLOYEES' HEALTH INSUR-
ANCE AND WORKERS' COMPENSATION INSURANCE.
  (2)  ENTER  INTO  CONTRACTS WITH THE SCHOOL DISTRICTS OF THE CITIES OF
ROCHESTER, BUFFALO, SYRACUSE, AND YONKERS TO PROVIDE ITS SERVICES.   THE
BOARD  SHALL, IN ITS SOLE DISCRETION, DETERMINE THE FAIR MARKET VALUE OF
THE SERVICES THAT IT PROVIDES TO EACH SCHOOL DISTRICT.

A. 7340--B                         23

  S 32. Subparagraphs (A) and (B) of paragraph 2 of  subsection  (e)  of
section  1310 of the tax law, as amended by section 4 of part M of chap-
ter 57 of the laws of 2009, are amended to read as follows:
  (A) Married individuals filing joint returns and surviving spouses. In
the case of a husband and wife who make a single return jointly and of a
surviving spouse:
     For taxable years beginning:       The credit shall be:
               in 2001-2005                    $125
               in 2006                         $230
               in 2007-2008                    $290
               in 2009 [and after]             [$125] $310
               AFTER 2009                      $335
  (B)  All  others.  In the case of an unmarried individual, a head of a
household or a married individual filing a separate return:
     For taxable years beginning:       The credit shall be:
               in 2001-2005                    $62.50
               in 2006                         $115
               in 2007-2008                    $145
               in 2009 [and after]             [$62.50] $155
               AFTER 2009                      $167.50
  S 33. This act shall take effect immediately, provided that:
  a. the provisions of sections one, ten and  twenty-nine  of  this  act
shall be deemed to have been in full force and effect on and after April
1,  2009 and shall apply to any general or special law imposing mandates
on municipal corporations or school districts enacted on or  after  such
effective date;
  b. the commissioner of education shall adopt any regulations needed to
implement the provisions of this act on or before July 1, 2010;
  c.  the  provisions  of sections twenty-six, twenty-seven, and twenty-
eight of this act shall  take  effect  on  the  first  of  January  next
succeeding the date on which it shall have become a law, and shall apply
to taxable years commencing on or after such date; and
  d.  the  provisions  of  section  seven  of this act shall take effect
February 1, 2010 and shall first apply to the levy of  taxes  by  school
districts  for the 2010-2011 school year and to school district meetings
and elections held on and after such effective date; and
  e. sections six, twelve, thirteen, and fourteen of this act shall take
effect July 1, 2010.

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 7340--C

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             March 31, 2009
                               ___________

Introduced  by M. of A. BRODSKY, SPANO, LATIMER, GORDON -- read once and
  referred to the Committee on Ways and Means --  committee  discharged,
  bill  amended,  ordered  reprinted  as amended and recommitted to said
  committee -- again  reported  from  said  committee  with  amendments,
  ordered  reprinted  as  amended  and  recommitted to said committee --
  again reported from said committee with amendments, ordered  reprinted
  as amended and recommitted to said committee

AN  ACT  to  amend the real property tax law, in relation to the "Middle
  Class STAR" rebate program; to amend the education law, in relation to
  the effect of mandates on school districts;  to  amend  the  education
  law,  in  relation  to  the  streamlining  of  planning  and reporting
  requirements for school districts and  boards  of  cooperative  educa-
  tional  services;  to  amend  the  tax  law, in relation to the school
  district property tax credit and establishing the maximum  residential
  school  property  tax,  personal income tax credit; to amend the state
  finance law, in relation to local property tax rebates; to  amend  the
  general  municipal law and the education law, in relation to requiring
  the state to fund certain programs mandated for municipal corporations
  and school districts; to amend  the  education  law,  in  relation  to
  student  transportation;  to amend the administrative code of the city
  of New York, in relation to an enhanced personal income tax credit  in
  New  York  city; to repeal subdivision 32 of section 305 of the educa-
  tion law relating to a study  of  reporting  requirements;  to  repeal
  section  805  of  the education law relating to special procedures for
  enforcement of the health education curriculum; to repeal subparagraph
  2 of paragraph d of subdivision 4 of section 1950 of the education law
  relating to prohibited aidable shared services; to repeal subparagraph
  2-a of paragraph d of subdivision 4 of section 1950 of  the  education
  law  relating  to demonstration of cost-effectiveness of instructional
  and  non-instructional  technology  acquired   by   component   school
  districts  through  a  board  of  cooperative educational services; to
  repeal paragraph d of subdivision 26-a of section 3602 of  the  educa-
  tion law relating to a plan for use of instructional computer technol-
  ogy  equipment;  and to repeal subdivision 13 of section 3602-e of the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD10689-05-9

A. 7340--C                          2

  education law relating to annual reports on universal  prekindergarten
  programs

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative intent. State mandated programs,  unlike  local
service  decisions,  place  local  taxpayers  and local officials in the
position of paying for services that they do not control.  Increasingly,
however,  the state has set local priorities and forced municipal taxing
decisions by mandating services, programs, and standards. As  a  result,
many  local  governments  and  school  districts are today in an acutely
difficult fiscal situation.
  Thus, in order to prevent irresponsible state  actions  which  prevent
localities  from  making  their  own decisions, and which force unwanted
local property tax increases, it  is  necessary  to  ensure  that  state
mandates  will  not  be forced on localities and school districts unless
they are adequately funded.
  S 2. The real property tax law is amended  by  adding  a  new  section
1306-b to read as follows:
  S 1306-B. "MIDDLE CLASS STAR" REBATE PROGRAM. 1. TAX REBATES. (A) IF A
PARCEL IS ENTITLED TO THE BASIC OR ENHANCED STAR EXEMPTION AUTHORIZED BY
SECTION  FOUR  HUNDRED  TWENTY-FIVE OF THIS CHAPTER FOR THE TWO THOUSAND
SIX--TWO THOUSAND SEVEN SCHOOL YEAR AND EACH YEAR  THEREAFTER,  A  LOCAL
PROPERTY  TAX  REBATE  SHALL  BE PROVIDED TO THE OWNER OR OWNERS OF SUCH
PARCEL AS SHOWN ON THE FINAL ASSESSMENT ROLL FOR SUCH YEAR, IN AN AMOUNT
COMPUTED AS PRESCRIBED BY THIS SECTION AND SECTION ONE HUNDRED  SEVENTY-
EIGHT OF THE TAX LAW.
  (B) IT SHALL BE THE RESPONSIBILITY OF THE STATE DEPARTMENT OF TAXATION
AND  FINANCE  TO  ISSUE  SUCH  TAX  REBATES TO SUCH OWNERS IN THE MANNER
PROVIDED BY SECTION ONE HUNDRED SEVENTY-EIGHT OF THE  TAX  LAW.  NOTHING
CONTAINED HEREIN SHALL BE CONSTRUED AS PERMITTING PARTIAL OR INSTALLMENT
PAYMENTS  OF  TAXES  IN A JURISDICTION WHICH HAS NOT AUTHORIZED THE SAME
PURSUANT TO LAW.
  2. PROCEDURE. (A) ON OR BEFORE AUGUST FIFTEENTH, TWO THOUSAND NINE AND
EACH YEAR THEREAFTER, THE EXECUTIVE DIRECTOR OF THE OFFICE OF REAL PROP-
ERTY SERVICES, OR HIS OR HER DESIGNEE, OR ON OR BEFORE JULY  FIRST,  TWO
THOUSAND  NINE  AND  EACH  YEAR THEREAFTER, IN THE CASE OF A CITY WITH A
POPULATION OF ONE MILLION OR MORE, THE COMMISSIONER OF FINANCE,  OR  HIS
OR  HER  DESIGNEE,  SHALL  PROVIDE  TO  THE COMMISSIONER OF TAXATION AND
FINANCE A REPORT IN A MUTUALLY AGREEABLE FORMAT CONCERNING THOSE PARCELS
WHICH HAVE BEEN GRANTED AN EXEMPTION AUTHORIZED BY SECTION FOUR  HUNDRED
TWENTY-FIVE OF THIS CHAPTER ON THE ASSESSMENT ROLLS USED TO GENERATE THE
SCHOOL  TAX BILLS FOR THE TWO THOUSAND NINE--TWO THOUSAND TEN SCHOOL TAX
YEAR AND FOR EACH YEAR THEREAFTER; PROVIDED HOWEVER THE  INFORMATION  TO
BE  PROVIDED  ON SUCH REPORT SHALL BE OBTAINED FROM THE FINAL ASSESSMENT
ROLL DATA FILES USED TO GENERATE THE TWO THOUSAND NINE--TWO THOUSAND TEN
SCHOOL TAX BILLS AND EACH YEAR THEREAFTER, FILED WITH  THE  STATE  BOARD
PURSUANT  TO SECTION FIFTEEN HUNDRED NINETY OF THIS CHAPTER ON OR BEFORE
JULY THIRTY-FIRST OF SUCH YEAR. SUCH REPORT SHALL SET  FORTH  THE  NAMES
AND  MAILING  ADDRESSES  OF  THE OWNERS OF SUCH PARCELS AS SHOWN ON SUCH
ASSESSMENT ROLL DATA FILES, THE IDENTIFICATION NUMBERS OF  SUCH  PARCELS
AS  SHOWN ON SUCH ASSESSMENT ROLL DATA FILES, AND SUCH OTHER INFORMATION
IN THE POSSESSION OF THE OFFICE OF REAL PROPERTY  SERVICES,  OR  IN  THE
CASE OF A CITY WITH A POPULATION OF ONE MILLION OR MORE, THE COMMISSION-

A. 7340--C                          3

ER  OF  FINANCE,  AS  THE  COMMISSIONER OF TAXATION AND FINANCE MAY DEEM
NECESSARY FOR THE EFFECTIVE ADMINISTRATION OF  THIS  PROGRAM,  INCLUDING
INFORMATION  REGARDING  COOPERATIVE  APARTMENT BUILDINGS AND MOBILE HOME
PARKS  OR SIMILAR PROPERTY. IT SHALL BE THE RESPONSIBILITY OF THE ASSES-
SOR OR ASSESSORS OF EACH ASSESSING UNIT TO ENSURE  THAT  THE  NAMES  AND
MAILING  ADDRESSES  OF SUCH OWNERS ARE ACCURATELY RECORDED ON SUCH ROLLS
AND FILES TO THE BEST OF HIS OR HER ABILITY, BASED UPON THE  INFORMATION
CONTAINED  IN  HIS  OR HER OFFICE. NOTHING CONTAINED IN THIS SUBDIVISION
SHALL BE CONSTRUED AS AFFECTING IN ANY WAY THE VALIDITY OR ENFORCEABILI-
TY OF A REAL PROPERTY TAX, OR THE APPLICABILITY OF INTEREST OR PENALTIES
WITH RESPECT THERETO, WHEN AN OWNER'S NAME OR MAILING  ADDRESS  HAS  NOT
BEEN ACCURATELY RECORDED.
  (B) (I) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDI-
VISION,  WHERE  AN  ASSESSING UNIT CONTAINS ONE OR MORE PROPERTIES WHICH
ARE RECEIVING SUCH EXEMPTION IN RELATION TO A PRIOR YEAR ASSESSMENT ROLL
PURSUANT TO PARAGRAPH (D) OF SUBDIVISION SIX  OF  SECTION  FOUR  HUNDRED
TWENTY-FIVE  OF  THIS  CHAPTER,  OR  CONTAINS  ONE  OR MORE PARCELS WITH
RESPECT TO WHICH SUCH EXEMPTION WAS DULY  ADDED  OR  REMOVED  AFTER  THE
FILING  OF THE FINAL ASSESSMENT ROLL PURSUANT TO THE PROVISIONS OF TITLE
THREE OF ARTICLE FIVE OF THIS  CHAPTER,  THE  OFFICE  OF  REAL  PROPERTY
SERVICES  MAY  REQUIRE  THE  ASSESSOR TO FILE WITH IT, ON OR BEFORE JULY
THIRTY-FIRST, TWO THOUSAND NINE AND EACH YEAR THEREAFTER, OR SUCH  LATER
DATE  AS SUCH OFFICE MAY SPECIFY, A SUPPLEMENTAL REPORT RELATING TO SUCH
PROPERTY OR PROPERTIES, SO THAT INFORMATION  PERTAINING  TO  THE  OWNERS
THEREOF  MAY BE INCLUDED IN THE REPORT TO BE MADE TO THE COMMISSIONER OF
TAXATION AND FINANCE PURSUANT TO THIS PARAGRAPH.  WHEN  ANY  INFORMATION
REQUIRED  BY  THIS  PARAGRAPH IS RECEIVED BY THE OFFICE OF REAL PROPERTY
SERVICES AFTER JULY THIRTY-FIRST, TWO THOUSAND NINE AND EACH YEAR THERE-
AFTER, SUCH INFORMATION SHALL BE TRANSMITTED AS SOON AS REASONABLY PRAC-
TICABLE TO THE COMMISSIONER OF TAXATION AND FINANCE FOR USE  IN  ISSUING
LOCAL PROPERTY TAX REBATES PURSUANT TO SECTION ONE HUNDRED SEVENTY-EIGHT
OF THE TAX LAW.
  (II)  WHERE  THE  OWNERSHIP  OF  A PARCEL THAT HAD BEEN ELIGIBLE FOR A
REBATE PURSUANT TO THIS SECTION CHANGES OR AN  EXEMPTION  UNDER  SECTION
FOUR  HUNDRED  TWENTY-FIVE  OF THIS CHAPTER HAS BEEN GRANTED OR REMOVED,
THE ASSESSOR SHALL NOTIFY THE STATE BOARD OF THE CHANGE  NO  LATER  THAN
AUGUST  FIRST  OF THE FOLLOWING YEAR. THE STATE BOARD SHALL FORWARD SUCH
REPORT TO THE DEPARTMENT OF TAXATION AND FINANCE IN A TIMELY MANNER  AND
IN A MUTUALLY-AGREEABLE FORMAT.
  3.  (A)  THE  STATE  BOARD SHALL CALCULATE THE REBATE BASE AS PROVIDED
HEREIN AND CERTIFY THE SAME TO THE DEPARTMENT OF TAXATION AND FINANCE NO
LATER THAN JULY FIRST, TWO THOUSAND NINE.
  (B) THREE REBATE BASES FOR THE BASIC STAR EXEMPTION  SHALL  BE  DETER-
MINED  FOR  EACH SEGMENT FOR THE TWO THOUSAND NINE--TWO THOUSAND TEN AND
SUBSEQUENT SCHOOL YEARS. SUCH REBATE BASES SHALL BE COMPUTED  BY  DETER-
MINING THE EXEMPT AMOUNT ESTABLISHED FOR THE SEGMENT FOR PURPOSES OF THE
BASIC  STAR  EXEMPTION  FOR  THE  TWO  THOUSAND EIGHT--TWO THOUSAND NINE
SCHOOL YEAR, MULTIPLYING THAT AMOUNT BY THE  SCHOOL  DISTRICT  TAX  RATE
APPLICABLE  WITHIN  THAT  SEGMENT  FOR  PURPOSES  OF  THE  TWO  THOUSAND
EIGHT--TWO  THOUSAND  NINE  SCHOOL  YEAR,  AS  REPORTED  BY  THE  SCHOOL
DISTRICT, AND THEN MULTIPLYING THE PRODUCT BY THE FOLLOWING:
  (I)  FOR  PURPOSES  OF  THE TWO THOUSAND NINE--TWO THOUSAND TEN SCHOOL
YEAR AND THE TWO THOUSAND TEN--TWO THOUSAND ELEVEN SCHOOL YEAR, BY SIXTY
PERCENT,  FORTY-FIVE  PERCENT  AND  THIRTY  PERCENT,  RESPECTIVELY.  THE
RESULTS  SHALL  BE  ASSOCIATED  WITH  THE FIRST, SECOND AND THIRD INCOME
BRACKETS, RESPECTIVELY, THAT ARE APPLICABLE WITHIN THAT SEGMENT.

A. 7340--C                          4

  (II) FOR PURPOSES OF THE  TWO  THOUSAND  ELEVEN--TWO  THOUSAND  TWELVE
SCHOOL  YEAR,  BY  SEVENTY  PERCENT,  FIFTY-TWO AND ONE-HALF PERCENT AND
THIRTY-FIVE PERCENT, RESPECTIVELY. THE RESULTS SHALL BE ASSOCIATED  WITH
THE  FIRST,  SECOND  AND  THIRD  INCOME BRACKETS, RESPECTIVELY, THAT ARE
APPLICABLE WITHIN THAT SEGMENT.
  (III)  FOR  PURPOSES OF THE TWO THOUSAND TWELVE--TWO THOUSAND THIRTEEN
AND SUBSEQUENT SCHOOL YEARS, BY EIGHTY PERCENT, SIXTY PERCENT AND  FORTY
PERCENT,  RESPECTIVELY.  THE RESULTS SHALL BE ASSOCIATED WITH THE FIRST,
SECOND AND THIRD INCOME  BRACKETS,  RESPECTIVELY,  THAT  ARE  APPLICABLE
WITHIN THAT SEGMENT.
  (IV) INCOME BRACKETS. (A) IN THE CITY OF NEW YORK, AND THE COUNTIES OF
NASSAU, SUFFOLK, ROCKLAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS, THE
FIRST  INCOME  BRACKET  SHALL  BE UP TO AND INCLUDING ONE HUNDRED TWENTY
THOUSAND DOLLARS; THE SECOND INCOME BRACKET SHALL BE  OVER  ONE  HUNDRED
TWENTY  THOUSAND  DOLLARS  UP  TO AND INCLUDING ONE HUNDRED SEVENTY-FIVE
THOUSAND DOLLARS; AND THE THIRD INCOME BRACKET SHALL BE OVER ONE HUNDRED
SEVENTY-FIVE THOUSAND DOLLARS UP TO  AND  INCLUDING  TWO  HUNDRED  FIFTY
THOUSAND DOLLARS.
  (B) IN ALL OTHER COUNTIES IN THE STATE, THE FIRST INCOME BRACKET SHALL
BE UP TO AND INCLUDING NINETY THOUSAND DOLLARS; THE SECOND INCOME BRACK-
ET  SHALL  BE  OVER  NINETY THOUSAND DOLLARS AND UP TO AND INCLUDING ONE
HUNDRED FIFTY THOUSAND DOLLARS; AND THE THIRD INCOME  BRACKET  SHALL  BE
OVER  ONE  HUNDRED  FIFTY  THOUSAND  DOLLARS AND UP TO AND INCLUDING TWO
HUNDRED FIFTY THOUSAND DOLLARS.
  (C) SUCH BRACKETS ARE SUBJECT TO INDEXING FOR  INFLATION  PURSUANT  TO
SUBDIVISION FIFTEEN OF SECTION ONE HUNDRED SEVENTY-EIGHT OF THE TAX LAW.
  (C)  ONE  REBATE  BASE FOR THE ENHANCED STAR EXEMPTION SHALL BE DETER-
MINED FOR EACH SEGMENT FOR THE TWO THOUSAND NINE--TWO THOUSAND  TEN  AND
SUBSEQUENT  SCHOOL  YEARS. SUCH REBATE BASES SHALL BE COMPUTED BY DETER-
MINING THE EXEMPT AMOUNT ESTABLISHED FOR THE SEGMENT FOR PURPOSES OF THE
ENHANCED STAR EXEMPTION FOR THE TWO THOUSAND  EIGHT--TWO  THOUSAND  NINE
SCHOOL  YEAR,  MULTIPLYING  THAT  AMOUNT BY THE SCHOOL DISTRICT TAX RATE
APPLICABLE WITHIN THAT SEGMENT FOR PURPOSES  OF  THAT  SCHOOL  YEAR,  AS
REPORTED BY THE SCHOOL DISTRICT, AND THEN MULTIPLYING THE PRODUCT BY THE
FOLLOWING:
  (I)  FOR  PURPOSES  OF  THE TWO THOUSAND NINE--TWO THOUSAND TEN SCHOOL
YEAR, BY TWENTY-FIVE PERCENT.
  (II) FOR PURPOSES OF THE TWO THOUSAND  TEN--TWO  THOUSAND  ELEVEN  AND
SUBSEQUENT SCHOOL YEARS, BY THIRTY-FIVE PERCENT.
  (D) FOR PURPOSES OF THIS SECTION, THE TERM "SEGMENT" MEANS THE PART OF
A CITY OR TOWN THAT IS WITHIN A SCHOOL DISTRICT.
  (E)  IN THE CASE OF SCHOOL DISTRICTS WITHIN SPECIAL ASSESSING UNITS AS
DEFINED IN SECTION EIGHTEEN HUNDRED ONE  OF  THIS  CHAPTER,  THE  SCHOOL
DISTRICT  TAX  RATE  TO  BE  USED FOR THIS PURPOSE SHALL BE THE TAX RATE
APPLICABLE TO CLASS ONE PROPERTIES AS DEFINED  IN  ARTICLE  EIGHTEEN  OF
THIS  CHAPTER,  AS REPORTED BY THE SCHOOL DISTRICT AND THE EXEMPT AMOUNT
SHALL BE ESTABLISHED FOR THE SEGMENT. IN THE CASE  OF  SCHOOL  DISTRICTS
WITHIN  APPROVED  ASSESSING UNITS AS DEFINED IN SECTION NINETEEN HUNDRED
ONE OF THIS CHAPTER WHICH HAVE ADOPTED THE PROVISIONS OF  SECTION  NINE-
TEEN  HUNDRED  THREE OF THIS CHAPTER, THE SCHOOL DISTRICT TAX RATE TO BE
USED FOR THIS PURPOSE SHALL BE THE TAX RATE APPLICABLE TO THE  HOMESTEAD
CLASS,  AS  DEFINED  IN ARTICLE NINETEEN OF THIS CHAPTER, AS REPORTED BY
THE SCHOOL DISTRICT.
  (F) WHERE THE PROVISIONS OF SUBPARAGRAPH  (IV)  OF  PARAGRAPH  (K)  OF
SUBDIVISION  TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER ARE
APPLICABLE, THE APPLICABLE REBATE  AMOUNT  SHALL  BE  ONE-THIRD  OF  THE

A. 7340--C                          5

OTHERWISE  APPLICABLE REBATE AMOUNT SET FORTH IN PARAGRAPH (B) OR (C) OF
THIS SUBDIVISION. THE STATE BOARD SHALL CALCULATE  AND  CERTIFY  TO  THE
DEPARTMENT OF TAXATION AND FINANCE THE REBATE AMOUNTS APPLICABLE IN SUCH
CASES,  ALONG  WITH  THE CERTIFICATION REQUIRED BY PARAGRAPH (A) OF THIS
SUBDIVISION.
  S 3. The education law is amended by adding a  new  section  101-b  to
read as follows:
  S  101-B.  PAPERWORK REDUCTION. 1. IT SHALL BE THE DUTY OF THE COMMIS-
SIONER TO REDUCE THE PAPERWORK BURDEN ON SCHOOL DISTRICTS AND BOARDS  OF
COOPERATIVE EDUCATIONAL SERVICES BY ELIMINATING AND AVOIDING DUPLICATIVE
REPORTING  REQUIREMENTS  WHEREVER  POSSIBLE, AND BY CONSOLIDATING PLANS,
REPORTS AND APPLICATIONS, WHERE POSSIBLE, WHILE  FOCUSING  PLANNING  AND
REPORTING  ON  RESULTS  RATHER  THAN  THE PROCESSES TO ACHIEVE THEM. THE
COMMISSIONER SHALL CONFORM STATE REPORTING AND PLANNING REQUIREMENTS  TO
FEDERAL  REQUIREMENTS,  WHERE  POSSIBLE,  AND SHALL SEEK FEDERAL WAIVERS
WHERE NEEDED TO ALIGN STATE AND FEDERAL REQUIREMENTS.
  2. THE COMMISSIONER SHALL REDUCE THE  NUMBER  OF  PLANS,  REPORTS  AND
APPLICATIONS  REQUIRED BY LAW, OF SCHOOL DISTRICTS AND BOARDS OF COOPER-
ATIVE EDUCATIONAL SERVICES BY ESTABLISHING STREAMLINED AND UNIFIED ELEC-
TRONIC DATA COLLECTION  SYSTEMS  WHICH  ELIMINATE  REDUNDANT  REPORTING,
CONNECT  PLANNING  AND REPORTING, AND WHICH FOCUS ON COLLECTING DATA AND
REQUIRING PLANNING ONLY WHEN NECESSARY TO ASSURE FISCAL AND PROGRAMMATIC
ACCOUNTABILITY, TO FOSTER CONTINUOUS SCHOOL IMPROVEMENT  AND  CLOSE  THE
GAP  BETWEEN  ACTUAL  AND  DESIRED  STUDENT  ACHIEVEMENT,  AND TO ASSURE
SCHOOLS PROVIDE A SAFE AND SECURE ENVIRONMENT AND/OR PROTECT THE  HEALTH
AND  SAFETY  OF  STUDENTS  AND STAFF. SUCH SYSTEMS SHALL MATCH OVERSIGHT
WITH THE DEGREE OF RISK BY LINKING PLANNING AND REPORTING TO  THE  STATE
SYSTEM  OF  ACCOUNTABILITY  REQUIRED UNDER FEDERAL LAW, PROVIDING FOR AN
AUDIT BASED ASSESSMENT OF RISK OF POOR STUDENT PERFORMANCE, POOR  FISCAL
PERFORMANCE  OR  IMPROPER MANAGEMENT OR USE OF PUBLIC FUNDS. THE COMMIS-
SIONER SHALL ESTABLISH PARTNERSHIPS WITH SELECTED SCHOOL  DISTRICTS  AND
BOARDS  OF  COOPERATIVE  EDUCATIONAL  SERVICES  TO PROMOTE BETTER USE OF
REQUIRED PLANNING AND REPORTING AND SHALL ASSURE THAT REPORTING REQUIRE-
MENTS INCLUDE DATA WHICH CAN BE USED TO  IDENTIFY  BEST  PRACTICES.  THE
COMMISSIONER  SHALL  PROVIDE FOR THE SHARING OF EFFECTIVE PLANNING PRAC-
TICES WITH SCHOOL  DISTRICTS  AND,  TO  THE  EXTENT  PRACTICABLE,  SHALL
PROVIDE  TECHNICAL  ASSISTANCE  ON THE USE OF DATA FOR PLANNING, INVOLVE
BOARDS OF COOPERATIVE EDUCATIONAL SERVICES AND  INSTITUTIONS  OF  HIGHER
EDUCATION  IN  PROVIDING TRAINING ON THE USE OF DATA FOR STRATEGIC PLAN-
NING TO SUPERINTENDENTS OF SCHOOLS, SCHOOL BUSINESS OFFICIALS AND TEACH-
ERS, PROVIDE FOR TRAINING ON THE USE OF DATA IN PLANNING TO SCHOOL BOARD
MEMBERS AND INVOLVE RESEARCHERS IN DATA ANALYSIS AND EVALUATION.
  S 4. Section 215-b of the education law, as amended by chapter 301  of
the laws of 1996, is amended to read as follows:
  S 215-b. Annual  report  by  commissioner to governor and legislature.
The commissioner shall prepare and submit to the governor, the president
pro tem of the senate and the speaker of the  assembly  not  later  than
January first, nineteen hundred ninety-six and by the first day of Janu-
ary  in  each  year  thereafter,  a  report  detailing the financial and
statistical outcomes of boards of cooperative educational services which
shall[, at minimum,] set forth with  respect  to  the  preceding  school
year[:  tuition  costs  for  selected  programs; standard per pupil cost
information for selected services as determined by the commissioner; and
aggregate expenditure data for the following categories: administration,
instructional services, career education, special  education,  rent  and
facilities  and  other  services;  and  such other information as deemed

A. 7340--C                          6

appropriate] INFORMATION  NECESSARY  TO  ASSURE  THE  ACCOUNTABILITY  OF
BOARDS  OF  COOPERATIVE EDUCATIONAL SERVICES FOR ITS FISCAL AND PROGRAM-
MATIC RESOURCES, AS SET FORTH IN REGULATIONS TO  BE  PRESCRIBED  by  the
commissioner. The format for such report shall be developed in consulta-
tion with school district officials and the director of the budget. Such
report  will  include changes from the year prior to the report year for
each such item for all boards of cooperative educational services.  Such
report shall be distributed to all school districts and boards of  coop-
erative  educational  services  and shall be made available to all other
interested parties upon request.
  S 5. Subdivision 32 of section 305 of the education law is REPEALED.
  S 6. The education law is amended by adding a  new  section  308-a  to
read as follows:
  S  308-A.  SPECIAL  PROVISIONS;  MANDATES. 1. AS USED IN THIS SECTION,
"MANDATE" MEANS (A) ANY STATE LAW, RULE OR REGULATION  WHICH  CREATES  A
NEW  PROGRAM  OR  REQUIRES  A  HIGHER  LEVEL  OF SERVICE FOR AN EXISTING
PROGRAM WHICH A SCHOOL DISTRICT, ORGANIZED EITHER  BY  SPECIAL  LAWS  OR
PURSUANT TO THE PROVISIONS OF A GENERAL LAW, IS REQUIRED TO PROVIDE, OR
  (B)  ANY  GENERAL  LAW  WHICH  GRANTS  A NEW PROPERTY TAX EXEMPTION OR
INCREASES AN EXISTING PROPERTY  TAX  EXEMPTION  WHICH  ANY  SUCH  SCHOOL
DISTRICT IS REQUIRED TO PROVIDE.
  2.  IN  THE  EVENT  THAT  A MANDATE WHICH IMPOSES A COST UPON A SCHOOL
DISTRICT IS CREATED AFTER THE ADOPTION OF A SCHOOL BUDGET, SUCH  MANDATE
SHALL  NOT BE IMPLEMENTED UNTIL THE FOLLOWING YEAR FOR WHICH SUCH SCHOOL
BUDGET WAS ADOPTED.
  3. NOTWITHSTANDING SUBDIVISION TWO OF THIS SECTION, SUCH A MANDATE CAN
BE IMPOSED IF:
  (A) THE MANDATE IS PROVIDED AT THE OPTION OF THE SCHOOL DISTRICT UNDER
A LAW, REGULATION, RULE OR ORDER THAT IS PERMISSIVE RATHER THAN MANDATO-
RY;
  (B) THE MANDATE IS REQUIRED BY, OR ARISES FROM, AN EXECUTIVE ORDER  OF
THE GOVERNOR EXERCISING HIS OR HER EMERGENCY POWERS; OR
  (C)  THE MANDATE IS REQUIRED BY STATUTE OR EXECUTIVE ORDER THAT IMPLE-
MENTS A FEDERAL LAW OR REGULATION AND RESULTS FROM COSTS MANDATED BY THE
FEDERAL GOVERNMENT TO BE BORNE AT THE LOCAL LEVEL, UNLESS THE STATUTE OR
EXECUTIVE ORDER IMPOSES COSTS WHICH EXCEED THE  COSTS  MANDATED  BY  THE
FEDERAL GOVERNMENT.
  4. THE OFFICE OF THE STATE COMPTROLLER SHALL MAKE A FISCAL ANALYSIS OF
THE  AGGREGATE  IMPACT  OF NEW STATE LEGISLATION AND RULEMAKING ON LOCAL
GOVERNMENTS AND SCHOOL DISTRICTS AND SHALL MAKE SUCH INFORMATION  AVAIL-
ABLE TO THE PUBLIC.
  S  7. Subdivisions 1 and 3 of section 416 of the education law, subdi-
vision 1 as amended by chapter 687 of the laws of 1949 and subdivision 3
as amended by chapter 171 of the laws of 1996, are amended  to  read  as
follows:
  1. A majority of the voters of any school district, present and voting
at  any annual or special district meeting, duly convened, may authorize
such acts and vote such taxes as they shall deem  expedient  for  making
additions,  alterations, repairs or improvements, to the sites or build-
ings belonging to the  district,  or  for  altering  and  equipping  for
library use any former schoolhouse belonging to the district, or for the
purchase  of  other sites or buildings, or for a change of sites, or for
the purchase of land and buildings  for  agricultural,  athletic,  play-
ground  or social center purposes, or for the erection of new buildings,
or for building a bus garage, or for [buying apparatus,  implements,  or
fixtures,  or  for  paying  the  wages  of  teachers,  and the necessary

A. 7340--C                          7

expenses of the school, or for the purpose of paying  any  judgment,  or
for] the payment or refunding of an outstanding bonded indebtedness[, or
for such other purpose relating to the support and welfare of the school
as they may, by resolution, approve].
  3.  No  addition to or change of site or purchase of a new site or tax
for the purchase of any new site or structure, or for grading or improv-
ing a school site, or for the purchase of an addition to the site of any
schoolhouse, or for the purchase of lands  and  buildings  for  agricul-
tural,  athletic,  playground or social center purposes, or for building
any new schoolhouse or for the erection of an addition  to  any  school-
house  already  built, or for the payment or refunding of an outstanding
bonded indebtedness, shall be voted at any such meeting in a union  free
school  district or a city school district [which conducts annual budget
votes in accordance with article forty-one of this chapter  pursuant  to
section  twenty-six  hundred  one-a of this chapter] IN A CITY WITH LESS
THAN ONE HUNDRED TWENTY-FIVE THOUSAND INHABITANTS, unless  a  notice  by
the board of education stating that such tax will be proposed, and spec-
ifying  the object thereof and the amount to be expended therefor, shall
have been given in the manner provided herein for the notice of an annu-
al meeting. In a common school district the notice of a special  meeting
to authorize any of the improvements enumerated in this section shall be
given as provided in section two thousand six. The board of education of
a  union  free school district or a city school district [which conducts
annual budget votes in accordance with article forty-one of this chapter
pursuant to section twenty-six hundred one-a of this chapter] IN A  CITY
WITH  LESS THAN ONE HUNDRED TWENTY-FIVE THOUSAND INHABITANTS, may deter-
mine that the vote upon any question to be submitted at a special  meet-
ing  as  provided  in  this section shall be by ballot, in which case it
shall state in the notice of such special meeting the hours during which
the polls shall be kept open. Printed ballots may  be  prepared  by  the
board  in  advance  of  the  meeting and the proposition or propositions
called for in the notice of the meeting may be submitted in substantial-
ly the same manner as  propositions  to  be  voted  upon  at  a  general
election.
  S 8. Section 805 of the education law is REPEALED.
  S  9. Subdivision 2 of section 806 of the education law, as amended by
chapter 946 of the laws of 1973, is amended to read as follows:
  2. The regents shall determine the subjects to  be  included  in  such
courses  of instruction in highway safety and traffic regulation includ-
ing bicycle safety, and the period of instruction in each of the  grades
in such subjects.  [They shall adopt rules providing for attendance upon
such instruction and for such other matters as are required for carrying
into  effect  the  teaching  of the courses of instruction prescribed by
this section.  The commissioner of education shall  be  responsible  for
the  enforcement  of  such  section  and shall cause to be inspected and
supervise the instruction to be given in such subjects. The commissioner
may, in his discretion, cause all or a  portion  of  the  public  school
money to be apportioned to a district or city to be withheld for failure
of  the  school authorities of such district or city to provide instruc-
tion in such courses and to compel attendance upon such instruction,  as
herein prescribed, and for a noncompliance with the rules of the regents
adopted as herein provided.]
  S  10.  The education law is amended by adding a new section 1527-a to
read as follows:

A. 7340--C                          8

  S 1527-A. FUNDING OF MANDATES IMPOSED ON SCHOOL DISTRICTS. 1.    DEFI-
NITIONS.  AS  USED  IN  THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS UNLESS THE CONTEXT SHALL OTHERWISE REQUIRE:
  (A) "MANDATE" MEANS:
  (I)  ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM OR
REQUIRES A HIGHER LEVEL OF SERVICE  FOR  AN  EXISTING  PROGRAM  WHICH  A
SCHOOL  DISTRICT  ORGANIZED  EITHER  BY  SPECIAL LAWS OR PURSUANT TO THE
PROVISIONS OF A GENERAL LAW, IS REQUIRED TO PROVIDE; OR
  (II) ANY GENERAL LAW WHICH GRANTS A  NEW  PROPERTY  TAX  EXEMPTION  OR
INCREASES  AN  EXISTING  PROPERTY  TAX  EXEMPTION  WHICH ANY SUCH SCHOOL
DISTRICT IS REQUIRED TO PROVIDE.
  (B) "UNFUNDED MANDATE" SHALL MEAN:
  (I) ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM  OR
REQUIRES  A  HIGHER  LEVEL  OF SERVICE FOR AN EXISTING PROGRAM WHICH ANY
SUCH SCHOOL DISTRICT IS REQUIRED TO PROVIDE AND WHICH RESULTS IN  A  NET
ADDITIONAL COST TO SUCH SCHOOL DISTRICT;
  (II)  ANY  ALTERATION  IN FUNDING PROVIDED TO ANY SUCH SCHOOL DISTRICT
FOR THE PURPOSE OF DEFRAYING THE COSTS OF A PROGRAM WHICH IT IS REQUIRED
TO PROVIDE, THEREBY RESULTING IN A NET ADDITIONAL COST  TO  SUCH  SCHOOL
DISTRICT; OR
  (III)  ANY  GENERAL  LAW  WHICH GRANTS A NEW PROPERTY TAX EXEMPTION OR
INCREASES AN EXISTING PROPERTY  TAX  EXEMPTION  WHICH  ANY  SUCH  SCHOOL
DISTRICT  IS  REQUIRED TO PROVIDE, THEREBY RESULTING IN A NET ADDITIONAL
COST TO SUCH SCHOOL DISTRICT.
  (C) "NET ADDITIONAL COST" MEANS THE COST OR COSTS INCURRED  OR  ANTIC-
IPATED  TO  BE INCURRED WITHIN A ONE YEAR PERIOD BY A SCHOOL DISTRICT IN
PERFORMING OR ADMINISTERING A MANDATE AFTER  SUBTRACTING  THEREFROM  ANY
REVENUES RECEIVED OR RECEIVABLE BY THE SCHOOL DISTRICT ON ACCOUNT OF THE
MANDATED PROGRAM OR SERVICE, INCLUDING BUT NOT LIMITED TO:
  (I) FEES CHARGED TO THE RECIPIENTS OF THE MANDATED PROGRAM OR SERVICE;
  (II)  STATE  OR  FEDERAL  AID  PAID  SPECIFICALLY  OR CATEGORICALLY IN
CONNECTION WITH THE PROGRAM OR SERVICE; AND
  (III) AN OFFSETTING SAVINGS RESULTING FROM THE  DIMINUTION  OR  ELIMI-
NATION  OF  ANY  OTHER  PROGRAM  OR SERVICE DIRECTLY ATTRIBUTABLE TO THE
PERFORMANCE OR ADMINISTRATION OF THE MANDATED PROGRAM.
  2. FUNDING OF SCHOOL DISTRICT MANDATES.  (A) NOTWITHSTANDING ANY OTHER
PROVISION OF LAW, NO UNFUNDED MANDATE SHALL BE ENACTED WHICH CREATES  AN
ANNUAL NET ADDITIONAL COST TO ANY SCHOOL DISTRICT IN EXCESS OF TEN THOU-
SAND  DOLLARS  OR  AN AGGREGATE ANNUAL NET ADDITIONAL COST TO ALL SCHOOL
DISTRICTS IN EXCESS OF ONE MILLION DOLLARS.
  (B) THERE SHALL BE NO NEW LEGISLATIVE OR REGULATORY  MANDATES  IMPOSED
ON SCHOOL DISTRICTS WITHOUT A COMPLETE ACCOUNTING OF THE EXPECTED FISCAL
IMPACT  ON  SUCH SCHOOL DISTRICTS, AND SUCH ACCOUNTING MUST INCLUDE FULL
DOCUMENTATION, AN OPPORTUNITY FOR INPUT FROM AFFECTED  SCHOOL  DISTRICTS
AND PROPOSED REVENUE SOURCES WITH WHICH TO FUND THE NEW MANDATE.
  3.  EXEMPTIONS TO THE FUNDING OF SCHOOL DISTRICT MANDATES REQUIREMENT.
(A) THE STATE SHALL NOT BE REQUIRED TO FUND ANY NEW OR EXPANDED PROGRAMS
FOR SCHOOL DISTRICTS IF:
  (I) THE MANDATE IS REQUIRED BY A COURT ORDER OR JUDGMENT;
  (II) THE MANDATE IS PROVIDED AT THE  OPTION  OF  THE  SCHOOL  DISTRICT
UNDER  A  LAW, REGULATION, RULE, OR ORDER THAT IS PERMISSIVE RATHER THAN
MANDATORY;
  (III) THE MANDATE RESULTS FROM THE PASSAGE  OF  A  HOME  RULE  MESSAGE
WHEREBY A SCHOOL DISTRICT REQUESTS AUTHORITY TO IMPLEMENT THE PROGRAM OR
SERVICE  SPECIFIED  IN  THE  STATUTE, AND THE STATUTE IMPOSES COSTS ONLY

A. 7340--C                          9

UPON THAT SCHOOL DISTRICT WHICH REQUESTS THE  AUTHORITY  TO  IMPOSE  THE
PROGRAM OR SERVICE;
  (IV) THE MANDATE IS REQUIRED BY, OR ARISES FROM, AN EXECUTIVE ORDER OF
THE GOVERNOR EXERCISING HIS OR HER EMERGENCY POWERS; OR
  (V)  THE MANDATE IS REQUIRED BY STATUTE OR EXECUTIVE ORDER THAT IMPLE-
MENTS A FEDERAL LAW OR REGULATION AND RESULTS FROM COSTS MANDATED BY THE
FEDERAL GOVERNMENT TO BE BORNE AT THE LOCAL LEVEL, UNLESS THE STATUTE OR
EXECUTIVE ORDER RESULTS IN COSTS WHICH EXCEED THE COSTS MANDATED BY  THE
FEDERAL GOVERNMENT.
  (B)  EACH  ACT ESTABLISHING A MANDATE SHALL PROVIDE THAT THE EFFECTIVE
DATE OF ANY SUCH MANDATE IMPOSED ON SCHOOL DISTRICTS SHALL BE CONSISTENT
WITH THE NEEDS OF THE STATE AND SCHOOL DISTRICTS TO PLAN  IMPLEMENTATION
THEREOF, AND ALSO CONSISTENT WITH THE AVAILABILITY OF REQUIRED FUNDS.
  S  11.  Subparagraph 1 of paragraph b of subdivision 4 of section 1950
of the education law, as amended by chapter 474 of the laws of 1996,  is
amended to read as follows:
  (1)  Prepare,  prior to the annual meeting of members of the boards of
education and school trustees, held as provided in paragraph o  of  this
subdivision, a tentative budget of expenditures for the program costs, a
tentative  budget  for  capital  costs,  and  a tentative budget for the
administration costs of the board of cooperative  educational  services.
Such  budgets  shall include the proposed budget for the upcoming school
year, the previous school year's actual costs  and  the  current  school
year's  projected  costs  for  each object of expenditure. Such program,
capital and administrative budgets shall  be  separately  delineated  in
accordance  with  the  definition of program, capital and administrative
costs which shall be promulgated by the commissioner after  consultation
with  school district officials and the director of the budget. Personal
service costs for each budget shall  include  the  number  of  full-time
equivalent  positions funded and total salary and, except as noted here-
in, fringe benefit costs for such positions  by  program.  Each  program
budget  shall  also  include  the local and statewide unit costs of such
programs and services proposed for the upcoming school year, such actual
unit costs for the previous school year, and the current  school  year's
projected  unit costs, all established in accordance with paragraph d of
this subdivision. The capital budget shall include facility construction
and lease expenditures authorized pursuant to paragraphs p, t and  u  of
this  subdivision, payments for the repayment of indebtedness related to
capital projects, payments for the acquisition or construction of facil-
ities, sites or additions, provided that such  budget  shall  contain  a
rental,  operations  and maintenance section that will include base rent
costs, total rent costs, operations and maintenance  charges,  cost  per
square  foot for each facility rented or leased by such board of cooper-
ative educational services, and any and all expenditures associated with
custodial salaries and benefits, service contracts, supplies, utilities,
maintenance and repairs for such facilities, and that such budget  shall
include  the  annual  debt  service  and  total  debt for all facilities
financed by bonds or notes of the component districts, annual rental and
lease payments and total rental and lease costs for all facilities rent-
ed by such board; such capital budget shall  also  include  expenditures
resulting  from court judgments and orders from administrative bodies or
officers, and, to the extent a board's administrative  budget  has  been
adopted,  one-time costs incurred in the first year in which an employee
retires. The administrative budget shall include, but need not be limit-
ed to, office and central administrative  expenses,  traveling  expenses
and  salaries  and  benefits of supervisors and administrative personnel

A. 7340--C                         10

necessary to carry out the central administrative duties of the supervi-
sory district, any and all expenditures associated with the  board,  the
office  of  district  superintendent,  general  administration,  central
support  services,  planning,  and  all other administrative activities.
Such administrative budget shall also specify the amount of supplementa-
ry salary and benefits, if any, which the  board  determines  should  be
paid  to  the  district  superintendent  of  schools and the board shall
append to such budget a detailed statement of the total compensation  to
be paid the district superintendent of schools by the board, including a
delineation  of  the salary, annualized cost of benefits and any in-kind
or other form of remuneration to be  paid,  plus,  commencing  with  the
presentation  of the budget for the nineteen hundred ninety-seven--nine-
ty-eight  school  year,  [a  list  of  items  of  expense  eligible  for
reimbursement  on  expense  accounts  in  the ensuing school year and] a
statement of the amount of expenses paid to the district  superintendent
of  schools  in  the  prior year for purposes of carrying out his or her
official duties.
  S 12. Subparagraph 5 of paragraph b of subdivision 4 of  section  1950
of  the education law, as amended by chapter 602 of the laws of 1994, is
amended to read as follows:
  (5) The trustees or  board  of  education  of  each  component  school
district  of the board of cooperative educational services shall adopt a
public resolution which  shall  approve  or  disapprove  such  tentative
administrative  budget at a regular or special meeting to be held within
the component district on the date designated  pursuant  to  subdivision
two-a  of  this section as the date for election of members of the board
of cooperative educational services, or in the  case  of  the  board  of
education  of a central high school district on the regular business day
next following such designated date.
  If the resolutions adopted by the trustees or boards of education of a
majority of the component school districts of the board  of  cooperative
educational  services  actually voting approve the tentative administra-
tive budget, the board of cooperative educational services may adopt the
tentative administrative budget without modification. If a  majority  of
the component school districts actually voting fail to adopt resolutions
approving  such  tentative  administrative  budget,  or if the number of
component school districts approving the budget  equals  the  number  of
school  districts  disapproving  the  budget,  the  board of cooperative
educational services shall prepare and adopt a  contingency  administra-
tive  budget  which  shall  not  exceed the amount of the administrative
budget of the board of cooperative educational services for the previous
school year except to accommodate expenditure increases attributable  to
supplemental  retirement  allowances  payable  pursuant  to section five
hundred thirty-two of this chapter  and  section  seventy-eight  of  the
retirement  and  social security law.  [For purposes of development of a
budget for the nineteen hundred  ninety-four--ninety-five  school  year,
each  board  of  cooperative  educational  services  shall  separate its
program, capital and administrative costs for the nineteen hundred nine-
ty-three--ninety-four school  year  in  the  manner  prescribed  by  the
commissioner,  and]  THE BOARD OF COOPERATIVE EDUCATIONAL SERVICES shall
NOT BE REQUIRED TO submit [the resulting]  ITS  separate  administrative
budget  to  the commissioner for approval. [Upon approval of the commis-
sioner, such separate administrative budget shall be deemed the adminis-
trative budget of the board of cooperative educational services for  the
nineteen hundred ninety-three--ninety-four school year.]

A. 7340--C                         11

  S  13.  Paragraph  c of subdivision 4 of section 1950 of the education
law, as amended by chapter 301 of the laws of 1996, is amended  to  read
as follows:
  c.  Make or cause to be made surveys to determine the need for cooper-
ative educational services in the supervisory district and  present  the
findings  of  their  surveys  to local school authorities. Each board of
cooperative educational services shall prepare long range program  plans
to  meet the projected need for such cooperative educational services in
the supervisory district for the next five years as may be specified  by
the  commissioner,  and  shall  [submit]  KEEP ON FILE AND AVAILABLE FOR
PUBLIC INSPECTION AND REVIEW BY THE COMMISSIONER such plans  and  there-
after  annual revisions of such plans [to the commissioner] on or before
the first day of December of each year, [except that  special  education
and  career  education program plans, in a form specified by the commis-
sioner, shall be submitted every two years, no later than the date spec-
ified by the commissioner, and  revised  annually]  PROVIDED  THAT  SUCH
PLANS  MAY  BE  INCORPORATED  INTO  A  BOARD  OF COOPERATIVE EDUCATIONAL
SERVICES DISTRICT-WIDE COMPREHENSIVE PLAN.
  S 14. Subparagraph 2-a of paragraph d of subdivision 4 of section 1950
of the education law is REPEALED.
  S 15. Subparagraphs 3 and 4 of paragraph d of subdivision 4 of section
1950 of the education law, as amended by chapter  474  of  the  laws  of
1996, are amended to read as follows:
  (3)  Requests  for  shared  services; operating plan; required notice.
Requests for such shared services shall be  filed  by  component  school
districts  with  the board of cooperative educational services not later
than the first day of February of each year, provided that such requests
shall not be binding upon the component school district.  The  board  of
cooperative  educational services shall submit its proposed annual oper-
ating plan for the ensuing school year to the  department  for  approval
not  later  than  the fifteenth day of February of each year. Such board
shall, through its  executive  officer,  notify  each  component  school
district  on  or  before  the tenth day of March concerning the services
[which] THAT have been approved by the commissioner to be made available
for the ensuing school year. Such  notice  shall  set  forth  the  local
uniform  cost  of  each  such  service, based on (i) anticipated partic-
ipation in the ensuing school year, or (ii) participation in the current
year, or (iii) a two or three year average  including  participation  in
the  current year, which unit cost shall be the same for all participat-
ing component districts and shall be based upon  a  uniform  methodology
approved annually by at least three-quarters of the participating compo-
nent  school districts after consultation by local school officials with
their respective boards[; provided, however, such  unit  cost  shall  be
subject  to final adjustment for programs for students with disabilities
based on actual participation in  accordance  with  regulations  of  the
commissioner.    Notwithstanding  the determination of the local uniform
unit cost methodology selected in accordance with this  paragraph,  each
board  of  cooperative  education  services shall annually report to the
commissioner the budgeted unit cost and, when available, the actual unit
cost of such programs and services, in accordance with  both  the  local
uniform  unit cost methodology and a statewide uniform unit cost method-
ology prescribed by the commissioner by regulation, where  the  budgeted
statewide  unit  cost shall be based on the anticipated participation in
the ensuing year and the actual statewide unit cost shall  be  based  on
actual participation through the end of each year].

A. 7340--C                         12

  (4) Contracts for shared services; allocation of costs. Each component
school  district  shall on or before the first day of May following such
notification notify the board of cooperative educational services of its
intention to participate or not to participate in such  shared  services
and  the  specific  services which such district elects to utilize. Each
participating component school district shall be  required  to  pay  the
board  of  cooperative educational services for the cost of the services
set forth in such notification, except for adjustments caused by  subse-
quent  unanticipated  changes in the district's enrollment. The board of
cooperative educational services shall enter  into  contracts  with  its
component  school  districts for such requested services. A copy of each
executed contract for such purpose shall be [filed with the commissioner
by] ON FILE WITH the  board  of  cooperative  educational  services  AND
AVAILABLE  FOR  PUBLIC  INSPECTION UPON REQUEST on or prior to the first
day of August of each year. Notwithstanding the provisions of  paragraph
b  of  this  subdivision,  any  component school district which does not
elect to participate in any such specific cooperative  services  author-
ized  under this paragraph shall not be required to pay any share of the
moneys provided in the budget as salaries of teachers or other personnel
employed in providing such service, for equipment and supplies for  such
service or for transportation of pupils to and from the place where such
service  is  maintained.  Provided, further, that a board of cooperative
educational services may allocate the cost of such services to component
school districts in accordance with terms agreed upon between such board
and three-quarters of the boards of  education  and  trustees  of  local
school districts participating in the service.
  S  16.  Paragraph aa of subdivision 4 of section 1950 of the education
law, as added by chapter 595 of the laws of 1978, is amended to read  as
follows:
  aa. Notwithstanding any other provision of law, a board of cooperative
educational  services  may[,  with  the  prior  written  approval of the
commissioner,] contract to accept from a leasing company which has qual-
ified as lowest bidder pursuant to the provisions of the general munici-
pal law a sum sufficient to purchase data processing equipment from  the
manufacturer  thereof,  pay  such sum to the manufacturer of said equip-
ment, receive the equipment and title thereto and convey the same to the
leasing company with a simultaneous lease of  the  equipment  from  such
leasing  company  to the board of cooperative educational services for a
specified period of years. Before any such agreement shall be  executed,
the  board  of cooperative educational services shall adopt a resolution
determining that such agreement is in the best financial interest of the
board. Such lease may be renewed for a further specified period of years
[with the prior approval of the commissioner of education].
  S 17. Paragraph kk of subdivision 4 of section 1950 of  the  education
law,  as  added  by  section  13 of part A of chapter 436 of the laws of
1997, is amended to read as follows:
  kk. For the nineteen hundred  ninety-seven--ninety-eight  school  year
and  thereafter,  the  board of cooperative educational services (BOCES)
shall prepare a BOCES  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 administrative 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 board of
cooperative educational services, on a school by school  or  program  by

A. 7340--C                         13

program basis, and measures of the fiscal performance of the supervisory
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 boards of cooperative educational services.
Such report card shall include[, at a minimum, any  information  of  the
board  of  cooperative  educational services 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.
  S  18.  Subdivision 2 of section 2201 of the education law, as amended
by chapter 295 of the laws of 1993, is amended to read as follows:
  2. Whenever a vacancy hereafter  occurs  in  the  office  of  district
superintendent  of  schools  in any supervisory district or whenever the
commissioner receives a letter of resignation  from  a  district  super-
intendent,  the  commissioner [shall] MAY survey the field in the county
where the vacancy occurred, and if it shall find that the continuance of
the number of supervisory districts then existing is no longer necessary
to serve adequately the educational interests of the county  he  or  she
shall  be authorized to conduct a study to examine the possible reorgan-
ization of such supervisory district if no such study has been conducted
within five years.
  S 19. Subdivision 5 of section 2802 of the education law, as added  by
chapter 181 of the laws of 2000, is amended to read as follows:
  5.  By  [January]  APRIL  first  of  each year, the commissioner shall
report to the governor, the legislature and the regents  concerning  the
prevalence  of violence and disruptive incidents in the public schools[,
and the effectiveness of school programs undertaken to  reduce  violence
and  assure  the  safety and security of students and school personnel].
The report shall summarize the information available from  the  incident
reporting  system,  and  [identify  specifically  the schools and school
districts with the least and greatest incidence of violent  and  disrup-
tive  incidents,  and  the least and most improvement since the previous
year or years] COMPARE THE INCIDENCE OF VIOLENT AND DISRUPTIVE INCIDENTS
OF SCHOOLS AND SCHOOL DISTRICTS AND BOARDS WITH OTHER SCHOOLS AND SCHOOL
DISTRICTS AND BOARDS BASED ON SIMILARITY IN SIZE AND  GRADE  LEVELS  AND
OTHER  CHARACTERISTICS,  INCLUDING STUDENT NEED AND RESOURCES, AS DETER-
MINED BY THE COMMISSIONER. [The report shall also, to the extent  possi-
ble,  relate  the  results available from the incident reporting system,
together with such other analysis and information  as  the  commissioner
determines is appropriate, to the effectiveness of school violence meas-
ures undertaken by participating schools and school districts, including
the  school  codes  and school safety plans required by sections twenty-
eight hundred one and twenty-eight hundred one-a of this article.]
  S 20. Paragraph b of subdivision 8 of section 3602  of  the  education
law,  as  amended  by  section 16 of part B of chapter 57 of the laws of
2007, is amended to read as follows:
  b. District plans of service. Any school district receiving  an  addi-
tional  apportionment  pursuant  to  subdivision ten of this section for
pupils in career education programs or a payment in lieu of such  appor-
tionment  or having a public excess cost aid setaside pursuant to subdi-
vision four of this section shall keep on file and  make  available  for
public  inspection  and review by the commissioner an acceptable plan of
service describing the student outcomes expected from implementation  of
the  proposed  plan,  provided that such plan may be incorporated into a
school district's district-wide comprehensive plan. The plan of  service

A. 7340--C                         14

[submitted  by]  OF a school district receiving an additional apportion-
ment pursuant to this section for pupils with  disabilities  shall  also
describe  how  such  district  intends  to ensure that all instructional
materials to be used in the schools of such district will be made avail-
able  in  a usable alternative format for each student with a disability
and for each student who is a qualified individual with a disability, at
the same time as such instructional materials are available to non-disa-
bled students, provided that such plan may incorporate by reference  the
alternative format plans developed pursuant to subdivision twenty-nine-a
of section sixteen hundred four, subdivision four-a of section seventeen
hundred  nine,  subdivision seven-a of section twenty-five hundred three
or subdivision seven-a of section twenty-five hundred fifty-four of this
chapter. Such plans shall be in a form prescribed by  the  commissioner,
and  except as heretofore provided, shall have the content prescribed by
the commissioner. The commissioner  may,  from  time  to  time,  require
amendments  of  such  plans as deemed to be necessary and appropriate to
further the educational welfare of the pupils involved.
  S 21. Paragraph f of subdivision 11 of section 3602 of  the  education
law,  as added by chapter 82 of the laws of 1995 and such subdivision as
renumbered by section 15 of part B of chapter 57 of the laws of 2007, is
amended to read as follows:
  f. Approved  plan  of  service  and  program  evaluation.  All  school
districts  and  BOCES desiring to operate an aidable program pursuant to
this subdivision shall complete [a comprehensive  plan  of  service]  AN
application,  including a budget by program component[, together with an
evaluation of the effectiveness of program components offered during the
most recent July first through March thirtieth, if  any].  Such  [evalu-
ation and plan] APPLICATION shall be in a form prescribed by the commis-
sioner  and shall be submitted not later than [forty-five days after the
provisions of this paragraph shall have become law, and not later  than]
May  fifteenth  in [subsequent] EACH school [years] YEAR.  Within forty-
five days of such deadline, and upon evaluation  of  such  applications,
the  commissioner  shall  notify  school  districts  and  BOCES of those
portions of such [plan of service] APPLICATION that will be  aidable  in
the school year ahead after making a determination that approval of such
[programs]  APPLICATION  will  assure  maximum effectiveness, geographic
availability and lack of  duplication  of  such  programs,  support  for
educational initiatives, and compliance with required program and fiscal
reporting  requirements. No aid shall be payable pursuant to this subdi-
vision unless the [program] APPLICATION is approved by the commissioner.
  S 22. Paragraph d of subdivision 26-a of section 3602 of the education
law is REPEALED.
  S 23. Subdivision 13  of  section  3602-e  of  the  education  law  is
REPEALED.
  S  24.  Section  3635  of the education law is amended by adding a new
subdivision 8 to read as follows:
  8. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR REGULATION,  IN
SCHOOL  DISTRICTS  HAVING  AN AREA OF FORTY SQUARE MILES OR LESS, IF THE
BOARD OF EDUCATION DETERMINES, BASED UPON HISTORY AND  EXPERIENCE,  THAT
THERE IS A CONSISTENT PATTERN OF ELIGIBLE PUPILS NOT USING THE TRANSPOR-
TATION PROVIDED BY THE DISTRICT, THE BOARD, IN ITS DISCRETION, MAY ENACT
A POLICY TO PROVIDE STUDENT TRANSPORTATION BASED UPON PATTERNS OF ACTUAL
RIDERSHIP  WITHOUT  REGARD  TO:   A. THE NUMBER OF STUDENTS ELIGIBLE FOR
TRANSPORTATION; AND B. THE NUMBER  OF  SEATS  THAT  WOULD  OTHERWISE  BE
REQUIRED FOR THEM UNDER PARAGRAPH A OF SUBDIVISION ONE OF THIS SECTION.

A. 7340--C                         15

  S  25.  The  tax law is amended by adding a new section 178 to read as
follows:
  S  178.  "MIDDLE CLASS STAR" REBATE PROGRAM. 1. THE COMMISSIONER SHALL
ISSUE THE LOCAL PROPERTY TAX  REBATES  AUTHORIZED  BY  SECTION  THIRTEEN
HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW. FOR PURPOSES OF THIS SECTION
THE  REBATE  SHALL BE CALCULATED USING THE COMPUTATION FORMULA SET FORTH
IN SUBDIVISION THREE OF SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROP-
ERTY TAX LAW.
  2. ON OR BEFORE AUGUST FIFTEENTH, TWO  THOUSAND  NINE  AND  EACH  YEAR
THEREAFTER,  THE  EXECUTIVE  DIRECTOR  OF  THE  OFFICE  OF REAL PROPERTY
SERVICES, OR HIS OR HER DESIGNEE, OR ON OR BEFORE JULY FIRST, TWO  THOU-
SAND  NINE  AND  EACH YEAR THEREAFTER IN THE CASE OF A CITY WITH A POPU-
LATION OF ONE MILLION  OR  MORE,  THE  COMMISSIONER  OF  FINANCE,  SHALL
PROVIDE  TO  THE  COMMISSIONER  A  REPORT IN A MUTUALLY AGREEABLE FORMAT
CONCERNING THOSE PARCELS WHICH SATISFY THE CRITERIA SET FORTH IN SECTION
THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW.
  3. THE COMMISSIONER IN CONSULTATION WITH THE OFFICE OF  REAL  PROPERTY
SERVICES  AND  IN THE CASE OF A CITY WITH A POPULATION OF ONE MILLION OR
MORE, THE COMMISSIONER OF FINANCE, IS AUTHORIZED TO  DEVELOP  PROCEDURES
NECESSARY  TO  PROVIDE FOR THE ISSUANCE OF LOCAL PROPERTY TAX REBATES TO
QUALIFYING PROPERTY OWNERS, AND THOSE QUALIFYING  PROPERTY  OWNERS  THAT
DID  NOT  RECEIVE  THEM  INITIALLY. IF THE COMMISSIONER IS NOT SATISFIED
THAT THE PROPERTY OWNER IS QUALIFIED FOR THE LOCAL PROPERTY TAX  REBATE,
THE COMMISSIONER SHALL NOT ISSUE SUCH REBATE.
  4.  WHEN THE PROPER PAYMENT OF A TAX REBATE UNDER THIS SECTION DEPENDS
UPON CONSTRUCTION OF THE MEANING OF THE PROVISIONS OF  SECTION  THIRTEEN
HUNDRED  SIX-B  OF THE REAL PROPERTY TAX LAW (AND ANY RELATED PROVISIONS
OF SUCH LAW) OR INTERPRETATION OF THE TERMS CONTAINED THEREIN, IT  SHALL
BE  THE  RESPONSIBILITY  OF THE STATE BOARD OF REAL PROPERTY SERVICES TO
PROVIDE TO THE DEPARTMENT THE CONSTRUCTION OR INTERPRETATION OF ANY SUCH
PROVISIONS OR TERMS.
  5. BY DEPOSITING A REBATE ISSUED PURSUANT TO THIS SECTION AND  AUTHOR-
IZED BY SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW, THE
PAYEE  IS  CERTIFYING THAT HE OR SHE IS THE PROPERTY OWNER, AND THAT THE
PRIMARY RESIDENCE OF SUCH PROPERTY OWNER IS NOT SUBJECT  TO  ANY  DELIN-
QUENT SCHOOL TAXES.
  6.  VERIFICATION OF "AFFILIATED INCOME" FOR "MIDDLE CLASS STAR" REBATE
PROGRAM. (A) GENERALLY. THE DETERMINATION OF THE "AFFILIATED INCOME"  OF
PARCELS  FOR  PURPOSES  OF  THE  "MIDDLE  CLASS  STAR" REBATE PROGRAM AS
AUTHORIZED BY SUBDIVISION THREE OF SECTION THIRTEEN HUNDRED SIX-B OF THE
REAL PROPERTY TAX LAW SHALL BE MADE AS PROVIDED BY THIS SECTION.
  (B) FOR PURPOSES OF THIS SUBDIVISION, THE TERM "INCOME" SHALL HAVE THE
SAME MEANING AS SET FORTH IN  SUBPARAGRAPH  (II)  OF  PARAGRAPH  (B)  OF
SUBDIVISION FOUR OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPER-
TY  TAX LAW. THE TERM "AFFILIATED INCOME" SHALL MEAN THE COMBINED INCOME
OF ALL OF THE OWNERS OF THE PARCEL WHO RESIDED PRIMARILY THEREON ON  THE
TAXABLE  STATUS DATE FOR THE ASSESSMENT ROLL USED TO GENERATE THE APPLI-
CABLE SCHOOL TAX BILLS, AND OF ANY OWNERS'  SPOUSES  FILING  JOINTLY  OR
SPOUSES'  RESIDING  PRIMARILY  THEREON  IN  THE CASES OF SPOUSES' FILING
SEPARATE RETURNS ON SUCH TAXABLE STATUS DATE AND SHALL BE DETERMINED  AS
FOLLOWS:
  (I)  FOR  THE  TWO THOUSAND NINE--TWO THOUSAND TEN SCHOOL YEAR, AFFIL-
IATED INCOME SHALL BE DETERMINED BASED UPON THE PARTIES' INCOMES FOR THE
INCOME TAX YEAR ENDING IN TWO THOUSAND SEVEN. IN EACH  SUBSEQUENT  YEAR,
THE APPLICABLE INCOME TAX YEAR SHALL BE ADVANCED BY ONE YEAR.

A. 7340--C                         16

   (II)  THE  DEPARTMENT  SHALL DETERMINE THE AFFILIATED INCOME FOR EACH
PARCEL AND SHALL ASSIGN A REBATE AMOUNT FOR EACH PARCEL BASED UPON  SUCH
DETERMINATION. IN ANY CASE WHERE AFFILIATED INCOME CANNOT BE DETERMINED,
A REBATE SHALL NOT BE ISSUED.
  7.  NOTIFICATION  REQUIREMENT.  THE  DEPARTMENT SHALL MAIL INFORMATION
CONCERNING THE "MIDDLE CLASS STAR" REBATE PROGRAM TO OWNERS  OF  PARCELS
RECEIVING A BASIC STAR EXEMPTION ON THE ASSESSMENT ROLL USED TO GENERATE
THE  TWO THOUSAND NINE--TWO THOUSAND TEN SCHOOL TAX BILL. SUCH NOTIFICA-
TION SHALL EXPLAIN THAT PROPERTY OWNERS MUST FILE APPLICATIONS WITH  THE
DEPARTMENT  IN  ORDER  TO  OBTAIN THE REBATE AVAILABLE UNDER THE "MIDDLE
CLASS STAR" REBATE PROGRAM. SUCH NOTICE SHALL  FURTHER  EXPLAIN  HOW  TO
OBTAIN THE APPLICATION.
  8.  APPLICATIONS.  (A)  IN ORDER TO OBTAIN THE BENEFITS OF THE "MIDDLE
CLASS STAR" REBATE PROGRAM, THE PROPERTY OWNER MUST SUBMIT  AN  APPLICA-
TION TO THE DEPARTMENT NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND
NINE.  THE  APPLICANT SHALL PROVIDE THE DEPARTMENT WITH SUCH INFORMATION
AS MAY BE NECESSARY TO DETERMINE THE  PARCEL'S  AFFILIATED  INCOME.  THE
PERSONS  OTHER  THAN  THE  APPLICANT  WHOSE INCOMES ARE NECESSARY TO THE
DETERMINATION OF THE PARCEL'S AFFILIATED INCOME SHALL BE REFERRED TO  IN
THIS  SECTION  AS  "AFFILIATED PERSONS." RECIPIENTS OF THE ENHANCED STAR
EXEMPTION SHALL NOT FILE AN APPLICATION TO RECEIVE A REBATE. THE DEPART-
MENT SHALL MAIL ENHANCED STAR REBATE RECIPIENTS THEIR REBATES IN A TIME-
LY MANNER.
  (B) IF THE APPLICANT OR ANY AFFILIATED PERSONS WERE  NOT  REQUIRED  TO
FILE NEW YORK STATE INCOME TAX RETURNS FOR THE TWO THOUSAND SEVEN INCOME
TAX  YEAR  BECAUSE  THEIR INCOMES WERE BELOW THE THRESHOLD THAT NECESSI-
TATED SUCH FILING, THE APPLICATION SHALL SO INDICATE.
  (C) IF THE APPLICANT OR ANY AFFILIATED PERSONS WERE  NOT  REQUIRED  TO
FILE NEW YORK STATE INCOME TAX RETURNS FOR THE TWO THOUSAND SEVEN INCOME
TAX  YEAR  BECAUSE THEY DID NOT RESIDE IN NEW YORK STATE IN SUCH TAXABLE
YEAR, THE APPLICATION SHALL SO INDICATE. SUCH PERSONS SHALL PROVIDE WITH
THE APPLICATION ANY INFORMATION THAT THE DEPARTMENT DETERMINES IS NECES-
SARY TO CALCULATE THE PARCEL'S AFFILIATED INCOME UNDER THE "MIDDLE CLASS
STAR" REBATE PROGRAM.
  (D) AFTER TWO THOUSAND NINE, APPLICATIONS SHALL BE REQUIRED ONLY  WHEN
A  NEW APPLICATION FOR A BASIC STAR EXEMPTION FOR REAL PROPERTY TAXATION
IS FILED PURSUANT TO SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL  PROP-
ERTY  TAX  LAW,  OR  WHEN  THERE IS A CHANGE OF OWNERSHIP WHICH DOES NOT
NECESSITATE THE FILING OF A NEW APPLICATION FOR A BASIC STAR  EXEMPTION.
IN  EITHER INSTANCE, AN APPLICATION SHALL BE SUBMITTED TO THE DEPARTMENT
ON A TIMELY BASIS.
  (E) IF AN APPLICATION FOR A "MIDDLE CLASS  STAR"  REBATE  IS  RECEIVED
AFTER  DECEMBER  THIRTY-FIRST,  TWO THOUSAND NINE, AN OTHERWISE ELIGIBLE
PROPERTY OWNER SHALL NOT RECEIVE A REBATE FOR SUCH YEAR.  HOWEVER,  SUCH
APPLICATION  SHALL BE CONSIDERED TIMELY FILED FOR A REBATE IN SUBSEQUENT
YEARS PROVIDED THE OWNERSHIP OF THE PARCEL REMAINS UNCHANGED.
  9. PROCESSING OF APPLICATIONS. (A) AFTER RECEIVING A  TIMELY  APPLICA-
TION, THE DEPARTMENT SHALL ATTEMPT TO DETERMINE THE AFFILIATED INCOME OF
THE  PARCEL  AND  THE  REBATE AMOUNT TO WHICH THE PARCEL IS ENTITLED, IF
ANY.
  (B) IN THE CASE OF AN APPLICATION WHICH INDICATES THAT  THE  APPLICANT
AND  ANY  AFFILIATED  PERSONS  WERE  NOT REQUIRED TO FILE NEW YORK STATE
INCOME TAX RETURNS FOR THE TWO THOUSAND SEVEN INCOME  TAX  YEAR  BECAUSE
THEIR  INCOMES WERE BELOW THE THRESHOLD WHICH NECESSITATED THE FILING OF
A STATE INCOME TAX RETURN, THE DEPARTMENT MAY, SUBJECT TO AUDIT, ISSUE A

A. 7340--C                         17

REBATE EQUAL TO THE HIGHEST AMOUNT AVAILABLE FOR  THAT  SCHOOL  DISTRICT
SEGMENT.
  (C)  IN  THE CASE OF AN APPLICATION WHICH INDICATES THAT THE APPLICANT
AND ANY AFFILIATED PERSONS WERE NOT REQUIRED  TO  FILE  NEW  YORK  STATE
INCOME  TAX  RETURNS  FOR THE TWO THOUSAND SEVEN INCOME TAX YEAR BECAUSE
THEY DID NOT RESIDE IN NEW YORK STATE IN SUCH TAXABLE YEAR,  THE  APPLI-
CANT  SHALL PROVIDE SUCH INFORMATION REGARDING INCOME AS IS REQUESTED BY
THE DEPARTMENT. THE DEPARTMENT SHALL  ISSUE  A  REBATE  BASED  UPON  THE
INFORMATION PROVIDED BY THE APPLICANT AND ANY OTHER INFORMATION TO WHICH
THE  DEPARTMENT  MAY HAVE ACCESS CONCERNING THE INCOME OF SUCH PERSON OR
PERSONS.
  10. RECONSIDERATION OF REBATE AMOUNT. IN THE EVENT THE  DEPARTMENT  IS
UNABLE TO DETERMINE THE AFFILIATED INCOME FOR A PARCEL OR THE DEPARTMENT
DETERMINES  THAT  A REBATE SHALL NOT BE ISSUED FOR A PARCEL, THE DEPART-
MENT SHALL NOTIFY THE APPLICANT OF THAT FACT. A PROPERTY OWNER MAY  SEEK
RECONSIDERATION OF THE REBATE AMOUNT DETERMINATION FOR HIS OR HER PARCEL
ON  THE GROUNDS THAT THE PARCEL'S AFFILIATED INCOME WAS DETERMINED ERRO-
NEOUSLY. A PROPERTY OWNER MAY ALSO SEEK RECONSIDERATION IF NO REBATE WAS
ISSUED BECAUSE THE  PARCEL'S  AFFILIATED  INCOME  WAS  UNDETERMINED.  AN
APPLICATION  FOR  RECONSIDERATION  OF  REBATE  AMOUNT SHALL BE MADE IN A
MANNER PRESCRIBED BY THE DEPARTMENT, AND SHALL BE  ACCOMPANIED  BY  SUCH
DOCUMENTATION  AS  THE DEPARTMENT MAY REQUIRE. SUCH APPLICATION SHALL BE
FILED NO LATER THAN MARCH THIRTY-FIRST, TWO THOUSAND TEN. IF THE DEPART-
MENT FINDS AFTER REVIEWING SUCH AN APPLICATION THAT  THE  REBATE  AMOUNT
DETERMINATION  FOR  A  PARCEL  SHOULD  BE  CORRECTED,  IT SHALL ISSUE AN
AMENDED OR INITIAL REBATE CHECK. IF THE DEPARTMENT FINDS AFTER REVIEWING
SUCH AN APPLICATION THAT THE REBATE AMOUNT DETERMINATION FOR THE  PARCEL
WAS CORRECTLY DETERMINED, IT SHALL SO NOTIFY THE APPLICANT. SUCH NOTIFI-
CATION  SHALL INCLUDE AN EXPLANATION OF THE DEPARTMENT'S FINDINGS, INDI-
CATE THAT THE APPLICANT HAS THE RIGHT  TO  A  PROCEEDING  UNDER  ARTICLE
SEVENTY-EIGHT  OF  THE  CIVIL  PRACTICE  LAW AND RULES, AND INDICATE THE
STATUTE OF LIMITATIONS ASSOCIATED WITH SUCH  PROCEEDINGS.  SUCH  FINDING
SHALL  BE  SUBJECT TO REVIEW PURSUANT ONLY TO A PROCEEDING UNDER ARTICLE
SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES.
  11. SPECIAL PROVISIONS RELATING TO CO-OPERATIVE  APARTMENT  UNITS  AND
MOBILE  HOMES. THE DEPARTMENT'S DETERMINATION OF AFFILIATED INCOME SHALL
BE MADE WITH RESPECT TO THE TENANT-SHAREHOLDERS OR OWNERS OF THE UNIT IN
QUESTION RATHER THAN OF THE PARCEL.
  12. SUBSEQUENT YEARS. IN EACH YEAR SUBSEQUENT TO  TWO  THOUSAND  NINE,
AFFILIATED  INCOMES  SHALL CONTINUE TO BE DETERMINED AS PROVIDED BY THIS
SECTION FOR PURPOSES OF THE "MIDDLE CLASS STAR" REBATE  PROGRAM,  EXCEPT
THAT:
  (A)  THE NOTIFICATION REQUIREMENT OF SUBDIVISION SEVEN OF THIS SECTION
SHALL NOT BE APPLICABLE;
  (B) APPLICATIONS SHALL BE REQUIRED ONLY  AS  PROVIDED  IN  SUBDIVISION
EIGHT OF THIS SECTION; AND
  (C) IN EACH SUBSEQUENT YEAR, THE APPLICABLE INCOME TAX YEAR FOR DETER-
MINATIONS  UNDER  THIS  SECTION  SHALL  BE  ADVANCED ONE YEAR. ALL OTHER
APPLICABLE DATES AND DEADLINES WHICH REFERENCE A DATE  IN  TWO  THOUSAND
NINE  SHALL  BE  ADVANCED AND SHALL BE DEEMED TO REFERENCE DATES IN THAT
SUBSEQUENT YEAR, EXCEPT THAT APPLICATIONS FOR RECONSIDERATION OF  REBATE
AMOUNT   DETERMINATIONS   SHALL   BE   SUBMITTED  NO  LATER  THAN  MARCH
THIRTY-FIRST OF THE ENSUING YEAR.
  13.  CONFIDENTIAL  INFORMATION;  DISCLOSURE  PROHIBITION.  INFORMATION
REGARDING  REBATES ISSUED TO INDIVIDUALS SHALL NOT BE SUBJECT TO DISCLO-
SURE; INCLUDING NAMES, ADDRESSES, AND DOLLAR AMOUNTS  OF  REBATES.    IN

A. 7340--C                         18

ADDITION, ALL APPLICATIONS SUBMITTED FOR REBATES SHALL NOT BE SUBJECT TO
DISCLOSURE.
  14.  DEADLINE.  IF  ANY  APPLICABLE DEADLINE SHALL FALL ON A SATURDAY,
SUNDAY OR LEGAL HOLIDAY, SUCH DEADLINE SHALL BE  ADVANCED  TO  THE  NEXT
BUSINESS DAY.
  15.  AFFILIATED INCOME BRACKETS; INDEXING. THE DEPARTMENT SHALL ESTAB-
LISH THE AFFILIATED INCOME BRACKETS TO BE  ASSOCIATED  WITH  THE  REBATE
AMOUNTS  FOR  THE TWO THOUSAND TWELVE--TWO THOUSAND THIRTEEN SCHOOL YEAR
AND EACH SCHOOL YEAR THEREAFTER BY APPLYING  THE  INFLATION  FACTOR  SET
FORTH  IN THIS SUBDIVISION TO THE FIGURES THAT DEFINED THE INCOME BRACK-
ETS THAT WERE APPLICABLE TO THE TWO THOUSAND ELEVEN--TWO THOUSAND TWELVE
SCHOOL YEAR, AND ROUNDING EACH RESULT TO THE  NEAREST  MULTIPLE  OF  ONE
HUNDRED  DOLLARS.    FOR  PURPOSES  OF  THIS SUBDIVISION, THE "INFLATION
FACTOR" FOR EACH INCOME BRACKET SHALL BE DETERMINED  BY  THE  PERCENTAGE
INCREASE IN THE CONSUMER PRICE INDEX FOR URBAN WAGE EARNERS AND CLERICAL
WORKERS  (CPI-W)  PUBLISHED  BY  THE  UNITED STATES DEPARTMENT OF LABOR,
BUREAU OF LABOR STATISTICS, FOR THE THIRD QUARTER OF THE  CALENDAR  YEAR
PRECEDING  THE  APPLICABLE SCHOOL YEAR, AS COMPARED TO THE THIRD QUARTER
OF THE PRIOR CALENDAR YEAR. IF A BASE FIGURE AS  SO  DETERMINED  IS  NOT
EXACTLY  EQUAL TO A MULTIPLE OF ONE HUNDRED DOLLARS, IT SHALL BE ROUNDED
TO THE NEAREST MULTIPLE OF  ONE  HUNDRED  DOLLARS.  IN  EACH  SUBSEQUENT
SCHOOL YEAR, THE PRIOR YEAR'S INCOME BRACKETS SHALL BE INDEXED USING THE
ABOVE FORMULA WITH EACH YEAR ADVANCED BY ONE YEAR.
  16.  BEGINNING  IN  FISCAL YEAR TWO THOUSAND TEN--TWO THOUSAND ELEVEN,
THE DEPARTMENT SHALL DETERMINE WHICH PROGRAM PROVIDES A  LARGER  BENEFIT
TO  A  TAXPAYER,  THE  "MIDDLE CLASS STAR" REBATE PROGRAM IMPLEMENTED BY
SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW OR THE MAXI-
MUM RESIDENTIAL SCHOOL TAX CREDIT AUTHORIZED PURSUANT TO SUBSECTION (QQ)
OF SECTION SIX HUNDRED SIX OF THIS CHAPTER, AND SHALL  ENSURE  THAT  THE
TAXPAYER RECEIVES THAT AMOUNT OF BENEFIT IN ANY GIVEN TAXABLE YEAR.
  S 26. Subparagraph (E) of paragraph 1 of subsection (e) of section 606
of  the  tax  law,  as  amended  by  chapter 105 of the laws of 2006, is
amended to read as follows:
  (E) "Qualifying real property taxes" means all  real  property  taxes,
special  ad  valorem levies and special assessments, exclusive of penal-
ties and interest, levied on the residence of a qualified  taxpayer  and
paid  during  the taxable year [less the credit claimed under subsection
(n-1) of this section]. In addition, for taxable years  beginning  after
December thirty-first, nineteen hundred eighty-four, a qualified taxpay-
er  may  elect  to  include  any  additional amount that would have been
levied in the absence of an exemption from real property taxation pursu-
ant to section four hundred sixty-seven of the real property tax law. If
tenant-stockholders in a cooperative housing corporation  have  met  the
requirements of section two hundred sixteen of the internal revenue code
by  which they are allowed a deduction for real estate taxes, the amount
of taxes so allowable, or which would be allowable if the  taxpayer  had
filed  returns on a cash basis, shall be qualifying real property taxes.
If a residence is owned by two or more individuals as joint  tenants  or
tenants  in  common, and one or more than one individual is not a member
of the household, qualifying real property taxes is that  part  of  such
taxes  on  the  residence which reflects the ownership percentage of the
qualified taxpayer and members of his household. If a  residence  is  an
integral  part of a larger unit, qualifying real property taxes shall be
limited to that amount of such taxes paid as may  be  reasonably  appor-
tioned  to  such residence. If a household owns and occupies two or more
residences during different periods in the same taxable year, qualifying

A. 7340--C                         19

real property taxes shall be the sum of  the  prorated  qualifying  real
property  taxes  attributable  to  the household during the periods such
household occupies each of such residences. If the  household  owns  and
occupies  a residence for part of the taxable year and rents a residence
for part of the same taxable year, it may include both the proration  of
qualifying real property taxes on the residence owned and the real prop-
erty  tax equivalent with respect to the months the residence is rented.
Provided, however,  for  purposes  of  the  credit  allowed  under  this
subsection,  qualifying  real property taxes may be included by a quali-
fied taxpayer only to the extent that such taxpayer  or  the  spouse  of
such  taxpayer  occupying  such  residence for six months or more of the
taxable year owns or has owned the residence and paid such taxes.
  S 27. Section 606 of the tax law is amended by adding a new subsection
(qq) to read as follows:
  (QQ) MAXIMUM RESIDENTIAL SCHOOL TAX CREDIT. (1) DEFINITIONS.  FOR  THE
PURPOSES OF THIS SUBSECTION:
  (A)  "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE WHO
OWNS THE RESIDENTIAL REAL PROPERTY IN WHICH HE OR SHE RESIDES.
  (B) "HOUSEHOLD" MEANS THE TAXPAYER OR TAXPAYERS AND ALL OTHER PERSONS,
NOT NECESSARILY RELATED, WHO ALL RESIDE IN THE RESIDENTIAL REAL PROPERTY
OWNED BY THE TAXPAYER OR TAXPAYERS, AND SHARE ITS  FURNISHINGS,  FACILI-
TIES AND ACCOMMODATIONS; PROVIDED THAT NO PERSON MAY BE A MEMBER OF MORE
THAN ONE HOUSEHOLD AT ONE TIME.
  (C) "HOUSEHOLD GROSS INCOME" MEANS THE AGGREGATE ADJUSTED GROSS INCOME
OF  ALL  MEMBERS  OF  THE HOUSEHOLD FOR THE TAXABLE YEAR AS REPORTED FOR
FEDERAL INCOME TAX PURPOSES, OR WHICH  WOULD  BE  REPORTED  AS  ADJUSTED
GROSS  INCOME  IF A FEDERAL INCOME TAX RETURN WERE REQUIRED TO BE FILED,
WITH THE MODIFICATIONS IN SUBSECTION (B) OF SECTION SIX  HUNDRED  TWELVE
OF  THIS ARTICLE BUT WITHOUT THE MODIFICATIONS IN SUBSECTION (C) OF SUCH
SECTION, PLUS ANY PORTION OF THE GAIN FROM THE SALE OR EXCHANGE OF PROP-
ERTY OTHERWISE EXCLUDED FROM SUCH AMOUNT;  EARNED  INCOME  FROM  SOURCES
WITHOUT  THE  UNITED  STATES  EXCLUDABLE  FROM  FEDERAL  GROSS INCOME BY
SECTION NINE HUNDRED ELEVEN OF THE INTERNAL REVENUE CODE; SUPPORT  MONEY
NOT  INCLUDED  IN  ADJUSTED  GROSS  INCOME;  NONTAXABLE STRIKE BENEFITS;
SUPPLEMENTAL SECURITY INCOME PAYMENTS; THE GROSS AMOUNT OF  ANY  PENSION
OR  ANNUITY  BENEFITS  TO THE EXTENT NOT INCLUDED IN SUCH ADJUSTED GROSS
INCOME (INCLUDING, BUT NOT LIMITED TO, RAILROAD RETIREMENT BENEFITS  AND
ALL  PAYMENTS  RECEIVED UNDER THE FEDERAL SOCIAL SECURITY ACT AND VETER-
ANS' DISABILITY PENSIONS); NONTAXABLE INTEREST RECEIVED FROM  THE  STATE
OF  NEW  YORK,  ITS AGENCIES, INSTRUMENTALITIES, PUBLIC CORPORATIONS, OR
POLITICAL SUBDIVISIONS (INCLUDING A PUBLIC CORPORATION CREATED  PURSUANT
TO  AGREEMENT OR COMPACT WITH ANOTHER STATE OR CANADA); WORKERS' COMPEN-
SATION; THE GROSS AMOUNT OF "LOSS-OF-TIME" INSURANCE; AND THE AMOUNT  OF
CASH PUBLIC ASSISTANCE AND RELIEF, OTHER THAN MEDICAL ASSISTANCE FOR THE
NEEDY,  PAID  TO OR FOR THE BENEFIT OF THE QUALIFIED TAXPAYER OR MEMBERS
OF HIS OR HER  HOUSEHOLD.  HOUSEHOLD  GROSS  INCOME  SHALL  NOT  INCLUDE
SURPLUS  FOODS  OR  OTHER RELIEF IN KIND OR PAYMENTS MADE TO INDIVIDUALS
BECAUSE OF THEIR STATUS AS VICTIMS OF NAZI  PERSECUTION  AS  DEFINED  IN
PUBLIC LAW 103-286. PROVIDED, FURTHER, HOUSEHOLD GROSS INCOME SHALL ONLY
INCLUDE  ALL  SUCH INCOME RECEIVED BY ALL MEMBERS OF THE HOUSEHOLD WHILE
MEMBERS OF SUCH HOUSEHOLD.   FOR FARM FAMILIES EARNING  AT  LEAST  FIFTY
PERCENT  OF  THEIR INCOME FROM FARMING, "ADJUSTED GROSS INCOME" SHALL BE
REPLACED WITH "MODIFIED ADJUSTED GROSS INCOME" FOR FEDERAL TAX  PURPOSES
AS  REPORTED ON THE APPLICANT'S FEDERAL AND STATE INCOME TAX RETURNS FOR
THE APPLICABLE INCOME TAX YEAR.

A. 7340--C                         20

  (D) "NET SCHOOL TAX" MEANS THE SCHOOL TAXES ASSESSED ON  THE  RESIDEN-
TIAL REAL PROPERTY OWNED AND OCCUPIED BY THE TAXPAYER OR TAXPAYERS AFTER
ANY  EXEMPTION  OR  ABATEMENT RECEIVED PURSUANT TO THE REAL PROPERTY TAX
LAW.  SUCH NET SCHOOL TAX SHALL INCLUDE ANY  SCHOOL  TAXES  ASSESSED  ON
FARM  DWELLINGS  NOT  OWNED  BY  THE RESIDENT IF THE LEGAL TITLE TO SUCH
DWELLING IS HELD BY A PARTNERSHIP AND THE DWELLING SERVES AS THE PRIMARY
RESIDENCE OF ONE OR MORE OF THE PARTNERS, OR  IF  LEGAL  TITLE  TO  SUCH
DWELLING  IS  HELD  BY  AN  S-CORPORATION  OR BY A C-CORPORATION AND THE
DWELLING SERVES AS THE PRIMARY RESIDENCE OF A SHAREHOLDER OF SUCH CORPO-
RATION.
  (2) CREDIT. A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE
TAXES IMPOSED BY THIS ARTICLE, EQUAL TO SEVENTY PERCENT  OF  THE  AMOUNT
WHICH  THE  TAXPAYER'S  NET  SCHOOL  TAX  EXCEEDS THE TAXPAYER'S MAXIMUM
SCHOOL TAX, AS DETERMINED BY PARAGRAPH THREE OF THIS SUBSECTION. IF SUCH
CREDIT EXCEEDS THE TAX FOR SUCH TAXABLE YEAR, AS REDUCED  BY  THE  OTHER
CREDITS  PERMITTED  BY THIS ARTICLE, THE QUALIFIED TAXPAYER MAY RECEIVE,
AND THE COMPTROLLER, SUBJECT TO A CERTIFICATE OF THE  DEPARTMENT,  SHALL
PAY  AS AN OVERPAYMENT, WITHOUT INTEREST, ANY EXCESS BETWEEN SUCH TAX AS
SO REDUCED AND THE AMOUNT OF THE CREDIT. IF A QUALIFIED TAXPAYER IS  NOT
REQUIRED  TO  FILE A RETURN PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF
THIS ARTICLE, A QUALIFIED TAXPAYER  MAY  NEVERTHELESS  RECEIVE  AND  THE
COMPTROLLER, SUBJECT TO A CERTIFICATE OF THE DEPARTMENT, SHALL PAY AS AN
OVERPAYMENT THE FULL AMOUNT OF THE CREDIT, WITHOUT INTEREST.
  (3)  MAXIMUM SCHOOL TAX. (A) A QUALIFIED TAXPAYER'S MAXIMUM SCHOOL TAX
SHALL BE DETERMINED AS FOLLOWS:
  (I) IN THE CITY OF NEW YORK, AND  THE  COUNTIES  OF  NASSAU,  SUFFOLK,
ROCKLAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS:

       HOUSEHOLD GROSS INCOME                   MAXIMUM SCHOOL TAX

       ONE HUNDRED TWENTY THOUSAND              SIX PERCENT OF THE
       DOLLARS OR LESS                          HOUSEHOLD GROSS INCOME

       MORE THAN ONE HUNDRED                    SEVEN PERCENT OF
       TWENTY THOUSAND                          THE HOUSEHOLD
       DOLLARS, BUT                             GROSS INCOME
       LESS THAN OR EQUAL TO
       ONE HUNDRED SEVENTY-FIVE
       THOUSAND DOLLARS

       MORE THAN ONE HUNDRED                    EIGHT PERCENT OF
       SEVENTY-FIVE THOUSAND                    THE HOUSEHOLD
       DOLLARS, BUT LESS THAN                   GROSS INCOME
       OR EQUAL TO TWO HUNDRED
       FIFTY THOUSAND DOLLARS

       MORE THAN TWO HUNDRED                    NO LIMITATION.
       FIFTY THOUSAND
       DOLLARS
  (II) IN ALL OTHER COUNTIES IN THE STATE:

       HOUSEHOLD GROSS                          MAXIMUM SCHOOL
       INCOME                                   TAX

       NINETY THOUSAND                          SIX PERCENT OF THE
       DOLLARS OR LESS                          HOUSEHOLD GROSS INCOME

A. 7340--C                         21

       MORE THAN NINETY                         SEVEN PERCENT OF
       THOUSAND DOLLARS, BUT                    THE HOUSEHOLD
       LESS THAN OR EQUAL TO                    GROSS INCOME
       ONE HUNDRED FIFTY
       THOUSAND DOLLARS

       MORE THAN ONE HUNDRED                    EIGHT PERCENT OF
       FIFTY THOUSAND DOLLARS,                  THE HOUSEHOLD
       BUT LESS THAN OR EQUAL                   GROSS INCOME
       TO TWO HUNDRED FIFTY THOUSAND
       DOLLARS

       MORE THAN TWO HUNDRED FIFTY              NO LIMITATION.
       THOUSAND DOLLARS
  (B)  THE  THRESHOLDS OF HOUSEHOLD GROSS INCOME FOR ELIGIBILITY FOR THE
MAXIMUM SCHOOL TAX CREDIT, ESTABLISHED BY SUBPARAGRAPH (A) OF THIS PARA-
GRAPH, SHALL BE INDEXED FOR INFLATION.
  (4) EXCLUSIONS FROM ELIGIBILITY. NO CREDIT SHALL BE GRANTED UNDER THIS
SUBSECTION IF THE  QUALIFIED  TAXPAYER  CLAIMS  THE  REAL  PROPERTY  TAX
CIRCUIT  BREAKER  CREDIT,  PURSUANT  TO  SUBSECTION (E) OF THIS SECTION,
DURING THE TAXABLE YEAR.
  (5) FOR PURPOSES OF THIS SUBSECTION, IN THE CITIES OF BUFFALO, ROCHES-
TER, YONKERS, AND SYRACUSE, A TAXPAYER'S NET SCHOOL TAX SHALL BE  DETER-
MINED  BY  MULTIPLYING  SUCH  TAXPAYER'S TOTAL REAL PROPERTY TAX BILL BY
SIXTY-SEVEN PERCENT. IN THE CITY OF NEW YORK, A  TAXPAYER'S  NET  SCHOOL
TAX  SHALL BE DETERMINED BY MULTIPLYING SUCH TAXPAYER'S TOTAL REAL PROP-
ERTY TAX BILL BY FIFTY PERCENT.
  S 28. Subdivision 3 of section 97-rrr of the  state  finance  law,  as
amended  by  section  8 of part F of chapter 109 of the laws of 2006, is
amended to read as follows:
  3. The monies in such fund shall be appropriated for  school  property
tax  exemptions [and local property tax rebates] granted pursuant to the
real property tax law and [the tax law and payable pursuant  to  section
thirty-six  hundred nine of the education law,] for payments to the city
of New York pursuant to  section  fifty-four-f  of  this  chapter[,  and
pursuant to section one hundred seventy-eight of the tax law].
  S  29. The general municipal law is amended by adding a new section 25
to read as follows:
  S 25. FUNDING OF MANDATES. 1. DEFINITIONS. AS USED  IN  THIS  SECTION,
THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS UNLESS THE CONTEXT
SHALL OTHERWISE REQUIRE:
  (A) "MANDATE" MEANS:
  (I)  ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM OR
REQUIRES A HIGHER LEVEL OF SERVICE  FOR  AN  EXISTING  PROGRAM  WHICH  A
MUNICIPAL CORPORATION IS REQUIRED TO PROVIDE; OR
  (II)  ANY  GENERAL  LAW  WHICH  GRANTS A NEW PROPERTY TAX EXEMPTION OR
INCREASES AN EXISTING PROPERTY TAX EXEMPTION WHICH THE MUNICIPAL  CORPO-
RATION IS REQUIRED TO PROVIDE.
  (B) "UNFUNDED MANDATE" SHALL MEAN:
  (I)  ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM OR
REQUIRES A HIGHER LEVEL OF SERVICE  FOR  AN  EXISTING  PROGRAM  WHICH  A
MUNICIPAL  CORPORATION IS REQUIRED TO PROVIDE AND WHICH RESULTS IN A NET
ADDITIONAL COST TO THE MUNICIPAL CORPORATION;
  (II) ANY ALTERATION IN FUNDING PROVIDED TO A MUNICIPAL CORPORATION FOR
THE PURPOSE OF DEFRAYING THE COSTS OF A PROGRAM WHICH IT IS REQUIRED  TO

A. 7340--C                         22

PROVIDE,  THEREBY  RESULTING  IN  A NET ADDITIONAL COST TO THE MUNICIPAL
CORPORATION; OR
  (III)  ANY  GENERAL  LAW  WHICH GRANTS A NEW PROPERTY TAX EXEMPTION OR
INCREASES AN EXISTING PROPERTY TAX EXEMPTION WHICH THE MUNICIPAL  CORPO-
RATION  IS  REQUIRED  TO  PROVIDE, THEREBY RESULTING IN A NET ADDITIONAL
COST TO THE MUNICIPAL CORPORATION.
  (C) "NET ADDITIONAL COST" MEANS THE COST OR COSTS INCURRED  OR  ANTIC-
IPATED  TO BE INCURRED WITHIN A ONE YEAR PERIOD BY A LOCAL GOVERNMENT IN
PERFORMING OR ADMINISTERING A MANDATE AFTER  SUBTRACTING  THEREFROM  ANY
REVENUES  RECEIVED  OR  RECEIVABLE BY THE LOCAL GOVERNMENT ON ACCOUNT OF
THE MANDATED PROGRAM OR SERVICE, INCLUDING BUT NOT LIMITED TO:
  (I) FEES CHARGED TO THE RECIPIENTS OF THE MANDATED PROGRAM OR SERVICE;
  (II) STATE OR  FEDERAL  AID  PAID  SPECIFICALLY  OR  CATEGORICALLY  IN
CONNECTION WITH THE PROGRAM OR SERVICE; AND
  (III)  AN  OFFSETTING  SAVINGS RESULTING FROM THE DIMINUTION OR ELIMI-
NATION OF ANY OTHER PROGRAM OR  SERVICE  DIRECTLY  ATTRIBUTABLE  TO  THE
PERFORMANCE OR ADMINISTRATION OF THE MANDATED PROGRAM.
  2.  FUNDING OF MUNICIPAL CORPORATION MANDATES. (A) NOTWITHSTANDING ANY
OTHER PROVISION OF LAW, NO  UNFUNDED  MANDATE  SHALL  BE  ENACTED  WHICH
CREATES  AN  ANNUAL  NET ADDITIONAL COST TO ANY MUNICIPAL CORPORATION IN
EXCESS OF TEN THOUSAND DOLLARS OR AN  AGGREGATE  ANNUAL  NET  ADDITIONAL
COST TO ALL MUNICIPAL CORPORATIONS IN EXCESS OF ONE MILLION DOLLARS.
  (B)  THERE  SHALL BE NO NEW LEGISLATIVE OR REGULATORY MANDATES IMPOSED
ON LOCAL GOVERNMENTS WITHOUT  A  COMPLETE  ACCOUNTING  OF  THE  EXPECTED
FISCAL  IMPACT  ON  SUCH  LOCAL  GOVERNMENTS,  AND  SUCH ACCOUNTING MUST
INCLUDE FULL  DOCUMENTATION,  INPUT  FROM  AFFECTED  MUNICIPALITIES  AND
PROPOSED REVENUE SOURCES WITH WHICH TO FUND THE NEW MANDATE.
  3.  EXEMPTIONS  TO  THE  FUNDING  OF  MUNICIPAL  CORPORATION  MANDATES
REQUIREMENT. (A) THE STATE SHALL NOT BE REQUIRED  TO  FUND  ANY  NEW  OR
EXPANDED PROGRAMS IF:
  (I) THE MANDATE IS REQUIRED BY A COURT ORDER OR JUDGMENT;
  (II)  THE  MANDATE  IS  PROVIDED AT THE OPTION OF THE LOCAL GOVERNMENT
UNDER A LAW, REGULATION, RULE, OR ORDER THAT IS PERMISSIVE  RATHER  THAN
MANDATORY;
  (III)  THE  MANDATE  RESULTS  FROM  THE PASSAGE OF A HOME RULE MESSAGE
WHEREBY A LOCAL GOVERNMENT REQUESTS AUTHORITY TO IMPLEMENT  THE  PROGRAM
OR  SERVICE SPECIFIED IN THE STATUTE, AND THE STATUTE IMPOSES COSTS ONLY
UPON THAT LOCAL GOVERNMENT WHICH REQUESTS THE AUTHORITY  TO  IMPOSE  THE
PROGRAM OR SERVICE;
  (IV) THE MANDATE IS REQUIRED BY, OR ARISES FROM, AN EXECUTIVE ORDER OF
THE GOVERNOR EXERCISING HIS OR HER EMERGENCY POWERS; OR
  (V)  THE MANDATE IS REQUIRED BY STATUTE OR EXECUTIVE ORDER THAT IMPLE-
MENTS A FEDERAL LAW OR REGULATION AND RESULTS FROM COSTS MANDATED BY THE
FEDERAL GOVERNMENT TO BE BORNE AT THE LOCAL LEVEL, UNLESS THE STATUTE OR
EXECUTIVE ORDER RESULTS IN COSTS WHICH EXCEED THE COSTS MANDATED BY  THE
FEDERAL GOVERNMENT.
  (B)  EACH  ACT ESTABLISHING A MANDATE SHALL PROVIDE THAT THE EFFECTIVE
DATE OF ANY SUCH MANDATE IMPOSED  ON  MUNICIPAL  CORPORATIONS  SHALL  BE
CONSISTENT  WITH  THE  NEEDS  OF THE STATE AND MUNICIPAL CORPORATIONS TO
PLAN IMPLEMENTATION THEREOF AND  CONSISTENT  WITH  THE  AVAILABILITY  OF
REQUIRED FUNDS.
  S  30.  Subparagraph 2 of paragraph d of subdivision 4 of section 1950
of the education law is REPEALED.
  S 31. Subdivision 4 of section 1950 of the education law is amended by
adding a new paragraph oo to read as follows:

A. 7340--C                         23

  OO.  (1) FORM HEALTH INSURANCE TRUSTS WITH COMPONENT SCHOOL  DISTRICTS
OR  DISTRICTS  OF  CHILDREN  WHO  RESIDE WITHIN THE BOARD OF COOPERATIVE
EDUCATIONAL SERVICES TO PURCHASE AND ADMINISTER EMPLOYEES' HEALTH INSUR-
ANCE AND WORKERS' COMPENSATION INSURANCE.
  (2)  ENTER  INTO  CONTRACTS WITH THE SCHOOL DISTRICTS OF THE CITIES OF
ROCHESTER, BUFFALO, SYRACUSE, AND YONKERS TO PROVIDE ITS SERVICES.   THE
BOARD  SHALL, IN ITS SOLE DISCRETION, DETERMINE THE FAIR MARKET VALUE OF
THE SERVICES THAT IT PROVIDES TO EACH SCHOOL DISTRICT.
  S 32. Subparagraphs (A) and (B) of paragraph 2 of  subsection  (e)  of
section  1310 of the tax law, as amended by section 4 of part M of chap-
ter 57 of the laws of 2009, are amended to read as follows:
  (A) Married individuals filing joint returns and surviving spouses. In
the case of a husband and wife who make a single return jointly and of a
surviving spouse:
     For taxable years beginning:       The credit shall be:
               in 2001-2005                    $125
               in 2006                         $230
               in 2007-2008                    $290
               in 2009 [and after]             [$125] $310
               AFTER 2009                      $335
  (B) All others. In the case of an unmarried individual, a  head  of  a
household or a married individual filing a separate return:
     For taxable years beginning:       The credit shall be:
               in 2001-2005                    $62.50
               in 2006                         $115
               in 2007-2008                    $145
               in 2009 [and after]             [$62.50] $155
               AFTER 2009                      $167.50
  S  33.  Subparagraphs (A) and (B) of paragraph 2 of subdivision (c) of
section 11-1706 of the administrative code of the city of New  York,  as
amended  by  section  5 of part M of chapter 57 of the laws of 2009, are
amended to read as follows:
  (A) Married individuals filing joint returns and surviving spouses. In
the case of a husband and wife who make a single return jointly and of a
surviving spouse:
     For taxable years beginning:       The credit shall be:
               in 2001-2005                    $125
               in 2006                         $230
               in 2007-2008                    $290
               in 2009 [and after]             [$125} $310
               AFTER 2009                      $335
  (B) All others. In the case of an unmarried individual, a  head  of  a
household or a married individual filing a separate return:
     For taxable years beginning:       The credit shall be:
               in 2001-2005                    $62.50
               in 2006                         $115
               in 2007-2008                    $145
               in 2009 [and after]             [$65.50] $155
               AFTER 2009                      $167.50
  S 34. This act shall take effect immediately, provided that:
  a.  the  provisions  of  sections one, ten and twenty-nine of this act
shall be deemed to have been in full force and effect on and after April
1, 2009 and shall apply to any general or special law imposing  mandates
on  municipal  corporations or school districts enacted on or after such
effective date;

A. 7340--C                         24

  b. the commissioner of education shall adopt any regulations needed to
implement the provisions of this act on or before July 1, 2010;
  c.  the  provisions  of sections twenty-six, twenty-seven, and twenty-
eight of this act shall  take  effect  on  the  first  of  January  next
succeeding the date on which it shall have become a law, and shall apply
to taxable years commencing on or after such date; and
  d.  the  provisions  of  section  seven  of this act shall take effect
February 1, 2010 and shall first apply to the levy of  taxes  by  school
districts  for the 2010-2011 school year and to school district meetings
and elections held on and after such effective date; and
  e. sections six, twelve, thirteen, and fourteen of this act shall take
effect July 1, 2010.