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

                                  7238

                            I N  S E N A T E

                             March 25, 2010
                               ___________

Introduced by Sens. C. JOHNSON, FOLEY -- read twice and ordered printed,
  and when printed to be committed to the Committee on Local Government

AN  ACT  to  amend the general municipal law and the municipal home rule
  law, in relation to the requirements for consolidating  or  dissolving
  certain local government entities

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

  Section 1. Subdivision 2 of section 752 of the general municipal  law,
as  added  by  chapter  74  of  the  laws of 2009, is amended to read as
follows:
  2. The proposed joint consolidation agreement shall specify:
  (a) the name of each local government entity to be consolidated;
  (b) the name of the proposed  consolidated  local  government  entity,
which name shall be such as to distinguish it from the name of any other
like unit of government in the state of New York (except the name of any
one of the entities to be consolidated);
  (c)  the  rights,  duties and obligations of the proposed consolidated
local government entity;
  (d) the territorial boundaries  of  the  proposed  consolidated  local
government entity;
  (e)  the  type and/or class of the proposed consolidated local govern-
ment entity;
  (f) the governmental organization of the proposed  consolidated  local
government entity insofar as it concerns elected and appointed officials
and  public  employees,  along with a transitional plan and schedule for
elections and appointments of officials;
  (g) a fiscal estimate of the cost of and savings which may be realized
from consolidation, INCLUDING BUT NOT LIMITED TO:
  (I) INCREASED EFFICIENCIES THROUGH IMPROVED ECONOMIES OF SCALE;
  (II) DISCONTINUING AND/OR RESTRUCTURING THE  PROVISION  OF  PARTICULAR
SERVICES,  AND  THE  EXTENT  TO WHICH DISCONTINUING AND/OR RESTRUCTURING
SUCH SERVICES MAY ONLY BE ACHIEVED THROUGH CONSOLIDATION;
  (III) THE ELIMINATION OF ELECTED OFFICES;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD16593-01-0
              

S. 7238                             2

  (IV) INCREASED AID FROM THE STATE TO THE  RESULTING  LOCAL  GOVERNMENT
ENTITY; AND
  (V)  THE  EXTENT  TO WHICH SERVICES WILL NO LONGER BE PROVIDED THROUGH
THE USE OF VOLUNTEERS;
  (h) THE PROJECTED CHANGE, IF ANY, IN PROPERTY TAXES FOR THE  TAXPAYERS
LOCATED IN THE LOCAL GOVERNMENT ENTITIES TO BE CONSOLIDATED;
  (I)  WHETHER  THE  CONSOLIDATION  WILL  RESULT  IN  A  NET INCREASE OR
DECREASE IN THE STATE'S  LOCAL  GOVERNMENT  ENTITIES  AS  THAT  TERM  IS
DEFINED IN THIS ARTICLE;
  (J)  each  entity's  assets,  including,  but not limited to, real and
personal property, and the fair value thereof in current  money  of  the
United States;
  [(i)]  (K)  each  entity's  liabilities  and  indebtedness, bonded and
otherwise, and the fair value thereof in current  money  of  the  United
States;
  [(j)]  (L)  terms  for the disposition of existing assets, liabilities
and indebtedness of each local government entity, either jointly,  sepa-
rately or in certain defined proportions;
  [(k)]  (M) terms for the common administration and uniform enforcement
of local laws, ordinances, resolutions, orders and the like, within  the
proposed  consolidated  local government entity, consistent with section
seven hundred sixty-nine of this title;
  [(l)] (N) the effective date of the proposed consolidation; and
  [(m)] (O) the time and place or places for the public hearing or hear-
ings on such proposed joint consolidation agreement pursuant to  section
seven hundred fifty-four of this title.
  S  2. Section 755 of the general municipal law, as added by chapter 74
of the laws of 2009, is amended to read as follows:
  S 755. Referendum resolution for consolidation [of towns or villages].
1. [If a joint consolidation agreement calls for  the  consolidation  of
two  or  more  towns,  two  or  more  villages  or one or more towns and
villages, then contemporaneous] CONTEMPORANEOUS with the final  approval
of  the  joint  consolidation agreement pursuant to subdivision three of
section seven hundred fifty-four of this title, the  governing  body  or
bodies of the local government entities to be consolidated shall enact a
resolution calling for a referendum on the proposed consolidation by the
electors in each of the entities.
  2.  The  resolution calling for the referendum on the proposed consol-
idation shall:
  (a) provide (i) the name of each [of the towns and/or villages]  LOCAL
GOVERNMENT  ENTITY  proposed  to be consolidated, (ii) a statement fully
describing the territory to be included within the proposed consolidated
local government entity, (iii) the name  of  the  proposed  consolidated
local  government  entity,  and  (iv)  the  date  for the referendum, in
accordance with subdivision one of section seven hundred fifty-eight  of
this title;
  (b)  state  the substance of the question to be submitted to the elec-
tors; and
  (c) set forth such other matters as may be necessary to call,  provide
for  and  give  notice  of the referendum and to provide for the conduct
thereof and the canvass of the returns thereupon.
  3. The resolution calling for a referendum  on  the  proposed  consol-
idation  shall  have  attached  to  it the final approved version of the
joint consolidation agreement.
  S 3. Subdivision 2 of section 757 of the  general  municipal  law,  as
added by chapter 74 of the laws of 2009, is amended to read as follows:

S. 7238                             3

  2.  The petition shall contain [the] signatures [of] EQUAL TO at least
ten percent of the number of electors AT THE LAST  GENERAL  ELECTION  OF
THE  LOCAL  GOVERNMENT  ENTITY or five thousand [electors], whichever is
less, in each local government  entity  to  be  consolidated;  provided,
however,  that  where  the  local  government  entity to be consolidated
contains five hundred or fewer  electors,  the  petition  shall  contain
[the]  signatures [of] EQUAL TO at least twenty percent of the number of
electors AT THE LAST GENERAL ELECTION OF THE LOCAL GOVERNMENT ENTITY. No
signature on a petition is valid unless it is the original signature  of
an elector AND SIGNED WITHIN SIXTY DAYS OF THE PETITION BEING FILED WITH
THE CLERK.
  S  4. Section 760 of the general municipal law, as added by chapter 74
of the laws of 2009, is amended to read as follows:
  S 760. Duty to approve proposed elector initiated consolidation  plan.
1.  In the case of a proposed consolidation of local government entities
properly initiated by petition of electors  pursuant  to  section  seven
hundred  fifty-seven of this title, if a majority of the electors voting
in a referendum held in each of the  local  government  entities  to  be
consolidated  vote  in  favor  of consolidation, the entities' governing
body or bodies shall meet within thirty days after certification of  the
favorable  vote  [and,  within  one hundred eighty days of such meeting,
prepare and approve by resolution a proposed elector  initiated  consol-
idation plan].
  2.  WITHIN  TWELVE  MONTHS OF A MEETING OF THE LOCAL GOVERNING BODY OR
BODIES PURSUANT TO SUBDIVISION ONE OF THIS SECTION, THE LOCAL  GOVERNING
BODY  OR  BODIES  MUST  PREPARE AND APPROVE A PROPOSED ELECTOR INITIATED
CONSOLIDATION PLAN.  THE LOCAL GOVERNING BODY OR BODIES MAY  EXTEND  THE
TIME  TO  COMPLETE THE CONSOLIDATION PLAN BY NINETY-DAY INTERVALS FOR UP
TO ONE ADDITIONAL YEAR.
  3. The proposed elector initiated consolidation plan shall include:
  (a) the name of each local government entity to be consolidated;
  (b) the name of what will be the consolidated local government entity,
which name shall be such as to distinguish it from the name of any other
like unit of government in the state of New York (except the name of any
one of the entities to be consolidated);
  (c) the rights, duties  and  obligations  of  the  consolidated  local
government entity;
  (d)  the  territorial  boundaries of the consolidated local government
entity;
  (e) the type and/or class of the consolidated local government entity;
  (f) the governmental organization of the consolidated local government
entity insofar as it concerns elected and appointed officials and public
employees, along with a transitional plan and schedule for elections and
appointments of officials;
  (g) a fiscal estimate of the cost of and savings which may be realized
from consolidation, INCLUDING BUT NOT LIMITED TO:
  (I) INCREASED EFFICIENCIES THROUGH IMPROVED ECONOMIES OF SCALE;
  (II) DISCONTINUING AND/OR RESTRUCTURING THE  PROVISION  OF  PARTICULAR
SERVICES,  AND  THE  EXTENT  TO WHICH DISCONTINUING AND/OR RESTRUCTURING
SUCH SERVICES MAY ONLY BE ACHIEVED THROUGH CONSOLIDATION;
  (III) THE ELIMINATION OF ELECTED OFFICES;
  (IV) INCREASED AID FROM THE STATE TO THE  RESULTING  LOCAL  GOVERNMENT
ENTITY; AND
  (V)  THE  EXTENT  TO WHICH SERVICES WILL NO LONGER BE PROVIDED THROUGH
THE USE OF VOLUNTEERS;

S. 7238                             4

  (h) THE PROJECTED CHANGE, IF ANY, IN PROPERTY TAXES FOR THE  TAXPAYERS
LOCATED IN THE LOCAL GOVERNMENT ENTITIES TO BE CONSOLIDATED;
  (I)  WHETHER  THE  CONSOLIDATION  WILL  RESULT  IN  A  NET INCREASE OR
DECREASE IN THE STATE'S  LOCAL  GOVERNMENT  ENTITIES  AS  THAT  TERM  IS
DEFINED IN THIS ARTICLE;
  (J)  each  entity's  assets,  including,  but not limited to, real and
personal property, and the fair value thereof in current  money  of  the
United States;
  [(i)]  (K)  each  entity's  liabilities  and  indebtedness, bonded and
otherwise, and the fair value thereof in current  money  of  the  United
States;
  [(j)]  (L)  terms  for the disposition of existing assets, liabilities
and indebtedness of each local government entity, either jointly,  sepa-
rately or in certain defined proportions;
  [(k)]  (M) terms for the common administration and uniform enforcement
of local laws, ordinances, resolutions, orders and the like, within  the
consolidated  local  government  entity,  consistent  with section seven
hundred sixty-nine of this title;
  [(l)] (N) the effective date of the consolidation; and
  [(m)] (O) the time and place or places for the public hearing or hear-
ings on such proposed elector initiated consolidation plan  pursuant  to
section seven hundred sixty-two of this title.
  S  5. Section 763 of the general municipal law, as added by chapter 74
of the laws of 2009, is amended to read as follows:
  S 763. [Effective date of] REFERENDUM ON THE elector initiated consol-
idation plan[; permissive referendum].  1.  [Local  government  entities
consolidated  pursuant  to  an elector initiated consolidated plan shall
continue to be governed as before consolidation until the effective date
of the consolidation specified in such plan, which date shall be no less
than forty-five days after final  approval  of  such  plan  pursuant  to
subdivision three of section seven hundred sixty-two or subdivision four
of section seven hundred sixty-four of this title.
  2.  Notwithstanding  subdivision one of this section, the] THE elector
initiated consolidation plan shall not take effect [if,  no  later  than
forty-five  days  after  final  approval thereof pursuant to subdivision
three of section seven hundred sixty-two or subdivision four of  section
seven  hundred  sixty-four of this title, electors of a local government
entity to be consolidated pursuant to such plan shall:
  (a) file an original petition, containing not less than the number  of
signatures  provided for in subdivision three of this section, seeking a
referendum on the question whether the elector  initiated  consolidation
plan  shall  take effect, with the clerk of the town in which the entity
or the greater portion of its territory is located, except that  if  the
entity  is  a village the original petition of electors from the village
shall be filed with the clerk of the village; and
  (b) thereafter less than] UNLESS a majority of the electors  in  [the]
EACH entity vote in the affirmative on such question at a referendum.
  [3.  The  petition  shall  be  circulated, signed and authenticated in
substantial compliance with the  provisions  of  section  seven  hundred
fifty-seven  of  this  title,  shall  contain the signatures of at least
twenty-five percent of the number of electors or fifteen thousand  elec-
tors,  whichever  is  less, in the local government entity to be consol-
idated, and shall be accompanied by a cover sheet containing  the  name,
address  and  telephone  number of an individual who signed the petition
and who will serve as a contact person.

S. 7238                             5

  4. Within ten days of the filing of the petition seeking a  referendum
on whether the elector initiated dissolution plan shall take effect, the
clerk  with whom the petition was filed shall make a final determination
regarding the sufficiency of the number of signatures  on  the  petition
and  provide  timely written notice of such determination to the contact
person named in the cover sheet accompanying the petition.  The  contact
person  or  any  individual  who  signed  the petition may seek judicial
review of such determination in a proceeding pursuant to article  seven-
ty-eight  of the civil practice law and rules. Upon the clerk's determi-
nation that the petition contains no less than the  required  number  of
signatures,  the  governing body of the local government entity to which
such petition applies shall within thirty days enact a resolution  call-
ing  for  a  referendum  by  the electors of such entity on the question
whether to approve the elector initiated consolidation plan  and  set  a
date  for  such  referendum  in accordance with subdivision five of this
section.
  5.] 2. The referendum on the question OF whether the elector initiated
consolidation plan shall take effect shall be submitted  at  [a  special
election  to  be held not less than sixty or more than ninety] THE LOCAL
GOVERNMENT ENTITY'S NEXT GENERAL ELECTION OR AT  THE  NEXT  ELECTION  TO
FILL  A  VACANCY  IN  OFFICE  FOR  A LOCAL ELECTED OFFICIAL OF THE LOCAL
GOVERNMENT ENTITY, WHICHEVER IS SOONER, BUT IN NO CASE MAY THE  REFEREN-
DUM  BE HELD SOONER THAN FORTY-FIVE days after enactment of a resolution
pursuant to subdivision [four] THREE of this section[, provided,  howev-
er,  that in cases where a town or village general election falls within
such period, the referendum question may be considered during a town  or
village general election].
  [6.] 3. Notice of the referendum shall be given to the electors of the
local  government entity to which the petition applies by publication in
a newspaper having a general circulation within the  boundaries  of  the
entity at least once a week for four consecutive weeks immediately prior
to the referendum. The notice shall include, but not be limited to:
  (a)  a summary of the contents of the resolution and elector initiated
consolidation plan;
  (b) a statement as to where may be examined a copy of  the  resolution
and elector initiated consolidation plan;
  (c) the time and place or places at which the referendum will be held,
in accordance with subdivision five of this section; and
  (d)  such  other  matters as may be necessary to call, provide for and
give notice of the referendum and to provide for the conduct thereof and
the canvass of the returns thereupon.
  [7.] 4. In a referendum held pursuant to this section, the  referendum
question  shall  be  placed  before the electors of the local government
entity to which the petition applies in a form reading substantially  as
follows:
  "The  voters  of  the  (insert  type and name of each local government
entity to which the consolidation plan applies) having previously  voted
to  consolidate,  shall  the  elector  initiated consolidation plan take
effect?
  YES ____
  NO _____"
  [8.] 5. The elector initiated consolidation plan shall not take effect
unless a majority of the electors voting in the local government  entity
to  which the petition applies vote in favor of such plan taking effect.
If such a majority vote does not result, the referendum shall  fail  and
consolidation shall not take effect.

S. 7238                             6

  6.  IF  THE REFERENDUM SHALL FAIL, THE CONSOLIDATION PROCESS SPECIFIED
BY THIS TITLE SHALL NOT BE INITIATED FOR THE LOCAL  GOVERNMENT  ENTITIES
BY  ELECTORATE PETITION PURSUANT TO SECTION SEVEN HUNDRED FIFTY-SEVEN OF
THIS TITLE WITHIN FOUR YEARS OF THE DATE OF THE REFERENDUM.
  S  6.  Paragraph  (a)  of  subdivision 2 of section 773 of the general
municipal law, as added by chapter 74 of the laws of 2009, is amended to
read as follows:
  (a) a resolution of the governing body of the local government  entity
to be dissolved [endorsing a proposed dissolution plan]; or
  S  7. Section 774 of the general municipal law, as added by chapter 74
of the laws of 2009, is amended to read as follows:
  S 774. Proposed dissolution plan. 1. The governing  body  of  a  local
government  entity  may,  by resolution, [endorse a proposed dissolution
plan for the purpose of commencing dissolution  proceedings  under  this
article]  INITIATE  A  DISSOLUTION PROCEEDING BY FORMING A COMMISSION TO
STUDY, FORMULATE A PLAN FOR,  AND  MAKE  RECOMMENDATIONS  REGARDING  THE
DISSOLUTION AND TERMINATION OF A LOCAL GOVERNMENT ENTITY.
  2.  THE  COMMISSION FORMED PURSUANT TO SUBDIVISION ONE OF THIS SECTION
MAY HAVE ANY NUMBER OF MEMBERS THE LOCAL GOVERNING BODY DETERMINES TO BE
BENEFICIAL FOR DEVELOPING A DISSOLUTION PLAN WITH THE  REQUIREMENT  THAT
THE  COMMISSION  MUST,  IN  ADDITION  TO  APPOINTMENTS MADE BY THE CHIEF
ELECTED OFFICER THAT ARE  SUBJECT  TO  THE  GOVERNING  BODY'S  APPROVAL,
INCLUDE THE CHIEF ELECTED OFFICIAL (OR IN THE CASE OF A SPECIAL DISTRICT
OR  FIRE  DISTRICT,  THE  CHAIRMAN OF THE BOARD OF COMMISSIONERS) OF THE
LOCAL GOVERNMENT ENTITY, ONE MEMBER OF  THE  LOCAL  GOVERNMENT  ENTITY'S
GOVERNING  BODY  TO BE SELECTED BY A MAJORITY VOTE OF THE GOVERNING BODY
(OR IN THE CASE OF A SPECIAL DISTRICT OR FIRE  DISTRICT,  THE  BOARD  OF
COMMISSIONERS  MUST  SELECT  NO  LESS THAN ONE COMMISSIONER OR REPRESEN-
TATIVE), AND THE SUPERVISOR OF THE TOWN OR  TOWNS  IN  WHICH  THE  LOCAL
GOVERNMENT ENTITY IS LOCATED.
  3.  THE  COMMISSION FORMED PURSUANT TO SUBDIVISION ONE OF THIS SECTION
MAY FORM SUB-COMMITTEES AND CONDUCT COMMUNITY FORUMS AND PUBLIC HEARINGS
DEEMED NECESSARY TO DEVELOP A DISSOLUTION PLAN. IT  SHALL  BE  A  PROPER
PUBLIC  PURPOSE FOR THE GOVERNING BODY OF THE LOCAL GOVERNMENT ENTITY TO
APPROPRIATE  MONEY  FOR  NECESSARY  EXPENSES  RELATED  TO  STUDYING  THE
PROPOSED  DISSOLUTION  AND DEVELOPING A DISSOLUTION PLAN. THE COMMISSION
SHALL BE A PUBLIC BODY WITHIN THE MEANING OF SECTION ONE HUNDRED TWO  OF
THE  PUBLIC OFFICERS LAW. MEMBERS OF THE COMMISSION ARE REQUIRED TO FILE
AN OATH OF OFFICE WITH THE CLERK OF THE LOCAL GOVERNMENT ENTITY.
  4. WITHIN TWELVE MONTHS OF THE FORMATION OF A COMMISSION FORMED PURSU-
ANT TO SUBDIVISION ONE OF THIS SECTION, THE COMMISSION SHALL PREPARE AND
APPROVE A PROPOSED DISSOLUTION PLAN. THE LOCAL GOVERNING BODY MAY EXTEND
THE TIME TO COMPLETE THE DISSOLUTION PLAN BY NINETY-DAY INTERVALS FOR UP
TO ONE ADDITIONAL YEAR UPON THE REQUEST OF THE COMMISSION.
  5. The proposed dissolution plan shall specify:
  (a) the name of the local government entity to be dissolved;
  (b) the territorial boundaries of the entity;
  (c) the type and/or class of the entity;
  (d) a fiscal estimate of the cost of dissolution;
  (e) any plan for the transfer or elimination of public employees;
  (f) the entity's  assets,  including  but  not  limited  to  real  and
personal  property,  and  the fair value thereof in current money of the
United States;
  (g) the entity's liabilities and indebtedness, bonded  and  otherwise,
and the fair value thereof in current money of the United States;

S. 7238                             7

  (h)  any  agreements  entered into with the town or towns in which the
entity is situated in order to carry out the dissolution;
  (i)  the  manner  and  means by which the residents of the entity will
continue to be  furnished  municipal  services  following  the  entity's
dissolution;
  (j)  terms for the disposition of the entity's assets and the disposi-
tion of  its  liabilities  and  indebtedness,  including  the  levy  and
collection of the necessary taxes and assessments therefor;
  (k)  findings as to whether any local laws, ordinances, rules or regu-
lations of the entity shall remain in effect after the effective date of
the dissolution or shall remain in effect for a  period  of  time  other
than as provided by section seven hundred eighty-nine of this title;
  (l) the effective date of the proposed dissolution;
  (m)  the  time and place or places for a public hearing or hearings on
the proposed dissolution plan pursuant to section seven  hundred  seven-
ty-six of this title; [and]
  (n)  THE PROJECTED CHANGE, IF ANY, IN PROPERTY TAXES FOR THE TAXPAYERS
LOCATED IN THE LOCAL GOVERNMENT ENTITY TO BE DISSOLVED;
  (O) THE PROJECTED CHANGE, IF ANY, IN PROPERTY TAXES FOR THE  TAXPAYERS
OF THE TOWN OUTSIDE OF THE LOCAL GOVERNMENT ENTITY TO BE DISSOLVED;
  (P) A FISCAL ESTIMATE OF THE COST OF AND SAVINGS WHICH MAY BE REALIZED
FROM DISSOLUTION, INCLUDING BUT NOT LIMITED TO THE FOLLOWING:
  (I) INCREASED EFFICIENCIES THROUGH IMPROVED ECONOMIES OF SCALE;
  (II)  DISCONTINUING  AND/OR  RESTRUCTURING THE PROVISION OF PARTICULAR
SERVICES, AND THE EXTENT TO  WHICH  DISCONTINUING  AND/OR  RESTRUCTURING
SUCH SERVICES MAY ONLY BE ACHIEVED THROUGH DISSOLUTION;
  (III) THE ELIMINATION OF ELECTED OFFICES;
  (IV)  INCREASED  AID  FROM THE STATE TO THE RESULTING LOCAL GOVERNMENT
ENTITY; AND
  (V) THE EXTENT TO WHICH SERVICES WILL NO LONGER  BE  PROVIDED  THROUGH
THE USE OF VOLUNTEERS;
  (Q)  WHETHER THE DISSOLUTION WILL RESULT IN A NET INCREASE OR DECREASE
IN THE STATE'S LOCAL GOVERNMENT ENTITIES AS THAT TERM IS DEFINED IN THIS
ARTICLE; AND
  (R) any other matter desirable or necessary to carry out  the  dissol-
ution.
  6. A PUBLIC HEARING SHALL BE HELD ON THE FINALIZED PLAN AFTER AT LEAST
SEVEN  DAYS NOTICE, PUBLISHED IN A NEWSPAPER WITH GENERAL CIRCULATION IN
THE LOCAL GOVERNMENT ENTITY. AFTER CONDUCTING SUCH PUBLIC  HEARING,  THE
COMMISSION  FORMED PURSUANT TO SUBDIVISION ONE OF THIS SECTION MUST FILE
A FINALIZED DISSOLUTION PLAN AND  THE  COMMISSION'S  RECOMMENDATIONS  ON
WHETHER  TO  DISSOLVE THE LOCAL GOVERNMENT ENTITY WITH THE CLERK OF SUCH
LOCAL GOVERNMENT ENTITY WHO MUST IMMEDIATELY DELIVER THE PLAN AND RECOM-
MENDATIONS TO THE LOCAL GOVERNMENT ENTITY'S GOVERNING BODY.
  S 8. The opening paragraph of section 775  of  the  general  municipal
law,  as  added by chapter 74 of the laws of 2009, is amended to read as
follows:
  No later than five business days after  [commencement  of  dissolution
proceedings]  THE  DELIVERY  OF  THE DISSOLUTION PLAN AND RECOMMENDATION
pursuant to section  seven  hundred  seventy-four  of  this  title,  the
governing body of the local government entity to be dissolved shall:
  S 9. Subdivisions 1 and 3 of section 776 of the general municipal law,
as  added  by  chapter  74  of  the laws of 2009, are amended to read as
follows:
  1. The governing body of the local government entity to  be  dissolved
shall  set a time and place or places for one or more public hearings on

S. 7238                             8

the proposed dissolution plan. The hearing or hearings shall be held  no
less than thirty-five days and no more than ninety days after [commence-
ment  of  dissolution proceedings] RECEIVING THE DISSOLUTION PLAN RECOM-
MENDATIONS pursuant to section seven hundred seventy-four of this title.
Any  interested  person  shall  be  given a reasonable opportunity to be
heard on any aspect of the proposed dissolution.
  3. After completion of the final hearing, the governing  body  of  the
local  government  entity to be dissolved may amend the proposed dissol-
ution  plan,  provided  that  the  amended  version  complies  with  the
provisions  of  subdivision [two] FIVE of section seven hundred seventy-
four of this title and is publicized pursuant  to  subdivision  four  of
this section, [and/]or approve a final version of the dissolution plan[,
or  decline  to  proceed  further  with  dissolution  proceedings].  Any
approval by the governing body of a final  version  of  the  dissolution
plan must occur within one hundred eighty days of the final hearing.
  S 10. Section 777 of the general municipal law, as added by chapter 74
of the laws of 2009, is amended to read as follows:
  S  777.  Referendum resolution for dissolution [of villages]. 1. [If a
dissolution plan calls for the dissolution of a village, then  contempo-
raneous] CONTEMPORANEOUS with the final approval of the dissolution plan
pursuant  to  subdivision  three of section seven hundred seventy-six of
this title, the governing body of the [village] LOCAL GOVERNMENT  ENTITY
shall  enact  a  resolution  calling  for  a  referendum on the proposed
dissolution by the electors in the [village] LOCAL GOVERNMENT ENTITY.
  2. The resolution calling for the referendum on the  proposed  dissol-
ution shall:
  (a)  provide  (i) the name of the [village] LOCAL GOVERNMENT ENTITY to
be dissolved; and (ii) the date for the referendum, in  accordance  with
subdivision one of section seven hundred eighty of this title;
  (b)  state  the substance of the question to be submitted to the elec-
tors; and
  (c) set forth such other matters as may be necessary to call,  provide
for  and  give  notice  of the referendum and to provide for the conduct
thereof and the canvass of the returns thereupon.
  3. The resolution calling for the referendum on the  proposed  dissol-
ution  shall  have  attached  to  it  the  final approved version of the
dissolution plan.
  4. IF THE REFERENDUM SHALL FAIL, THE DISSOLUTION PROCESS SPECIFIED  BY
THIS  TITLE  SHALL  NOT  BE INITIATED FOR THE LOCAL GOVERNMENT ENTITY BY
ELECTORATE PETITION PURSUANT TO SECTION SEVEN  HUNDRED  SEVENTY-NINE  OF
THIS TITLE WITHIN FOUR YEARS OF THE DATE OF THE REFERENDUM.
  S  11.  Subdivisions  1  and 2 of section 779 of the general municipal
law, as added by chapter 74 of the laws of 2009, are amended to read  as
follows:
  1.  The  electors  of a local government entity may commence a dissol-
ution proceeding by filing an original  petition,  containing  not  less
than  the  number  of signatures provided for in subdivision two of this
section and in the form  provided  for  in  subdivision  three  of  this
section,  with  the clerk of the town in which the entity or the greater
portion of its territory is located, except that  if  the  entity  is  a
village  the  original  petition  of  electors from the village shall be
filed with the clerk of the village.  Accompanying  the  filed  petition
shall be a cover sheet containing the name, address and telephone number
of an individual who signed the petition and who will serve as a contact
person.  A  PETITION  MAY NOT BE SUBMITTED PURSUANT TO THIS SECTION IF A
RESOLUTION INITIATING THE DISSOLUTION PROCESS HAS BEEN ADOPTED  PURSUANT

S. 7238                             9

TO  SECTION  SEVEN HUNDRED SEVENTY-FOUR OF THIS TITLE UNTIL SUCH PROCESS
HAS BEEN COMPLETED.
  2.  The petition shall contain [the] signatures [of] EQUAL TO at least
ten percent of the number of electors AT THE LAST  GENERAL  ELECTION  OF
THE  LOCAL  GOVERNMENT  ENTITY or five thousand [electors], whichever is
less, in the local government entity to be dissolved; provided, however,
that where the local government entity to  be  dissolved  contains  five
hundred  or  fewer electors, the petition shall contain [the] signatures
[of] EQUAL TO at least twenty percent of the number of electors  AT  THE
LAST  GENERAL ELECTION OF THE LOCAL GOVERNMENT ENTITY. No signature on a
petition is valid unless it is an original signature of an  elector  AND
SIGNED WITHIN SIXTY DAYS OF THE PETITION BEING FILED WITH THE CLERK.
  S 12. Section 782 of the general municipal law, as added by chapter 74
of the laws of 2009, is amended to read as follows:
  S 782. Duty to approve proposed elector initiated dissolution plan. 1.
In the case of a proposed dissolution of a local government entity prop-
erly initiated by petition of electors pursuant to section seven hundred
seventy-nine  of  this  title, if a majority of the electors voting at a
referendum vote in favor of dissolution,  the  entity's  governing  body
shall  meet within thirty days after certification of the favorable vote
and[, within one hundred eighty days of such meeting,] FORM A COMMISSION
TO STUDY, FORMULATE A PLAN FOR, AND MAKE RECOMMENDATIONS  REGARDING  THE
DISSOLUTION AND TERMINATION OF A LOCAL GOVERNMENT ENTITY.
  2.  THE  COMMISSION FORMED PURSUANT TO SUBDIVISION ONE OF THIS SECTION
MAY HAVE ANY NUMBER OF MEMBERS THE LOCAL GOVERNING BODY DETERMINES TO BE
BENEFICIAL FOR DEVELOPING A DISSOLUTION PLAN WITH THE  REQUIREMENT  THAT
THE  COMMISSION  MUST,  IN  ADDITION  TO  APPOINTMENTS MADE BY THE CHIEF
ELECTED OFFICER SUBJECT TO THE GOVERNING BODY'S  APPROVAL,  INCLUDE  THE
CHIEF  ELECTED  OFFICIAL  (IN  THE  CASE  OF  A SPECIAL DISTRICT OR FIRE
DISTRICT, THE CHAIRMAN OF THE  BOARD  OF  COMMISSIONERS)  OF  THE  LOCAL
GOVERNMENT ENTITY, ONE MEMBER OF THE LOCAL GOVERNMENT ENTITY'S GOVERNING
BODY  TO  BE  SELECTED  BY A MAJORITY VOTE OF THE GOVERNING BODY (IN THE
CASE OF A SPECIAL DISTRICT OR FIRE DISTRICT, THE BOARD OF  COMMISSIONERS
MUST  SELECT  NO  LESS THAN ONE COMMISSIONER OR REPRESENTATIVE), AND THE
SUPERVISOR OF THE TOWN OR TOWNS IN WHICH THE LOCAL GOVERNMENT ENTITY  IS
LOCATED.
  3.  THE  COMMISSION FORMED PURSUANT TO SUBDIVISION ONE OF THIS SECTION
MAY FORM SUB-COMMITTEES AND CONDUCT COMMUNITY FORUMS AND PUBLIC HEARINGS
DEEMED NECESSARY TO DEVELOP A DISSOLUTION PLAN. IT IS  A  PROPER  PUBLIC
PURPOSE  FOR THE GOVERNING BODY OF THE LOCAL GOVERNMENT ENTITY TO APPRO-
PRIATE MONEY FOR NECESSARY EXPENSES RELATED  TO  STUDYING  THE  PROPOSED
DISSOLUTION AND DEVELOPING A DISSOLUTION PLAN. THE COMMISSION SHALL BE A
PUBLIC  BODY WITHIN THE MEANING OF SECTION ONE HUNDRED TWO OF THE PUBLIC
OFFICERS LAW. MEMBERS OF THE COMMISSION ARE REQUIRED TO FILE AN OATH  OF
OFFICE WITH THE CLERK OF THE LOCAL GOVERNMENT ENTITY.
  4. WITHIN TWELVE MONTHS OF THE FORMATION OF A COMMISSION FORMED PURSU-
ANT TO SUBDIVISION ONE OF THIS SECTION, THE COMMISSION SHALL prepare and
approve a proposed elector initiated dissolution plan. THE LOCAL GOVERN-
ING  BODY  MAY EXTEND THE TIME TO COMPLETE THE DISSOLUTION PLAN BY NINE-
TY-DAY INTERVALS FOR UP TO ONE ADDITIONAL YEAR UPON THE REQUEST  OF  THE
COMMISSION.
  [2.] 5. The proposed elector initiated dissolution plan shall specify:
  (a) the name of the local government entity to be dissolved;
  (b) the territorial boundaries of the entity;
  (c) the type and/or class of the entity;
  (d) a fiscal estimate of the cost of dissolution;

S. 7238                            10

  (e) any plan for the transfer or elimination of public employees;
  (f)  the  entity's  assets,  including  but  not  limited  to real and
personal property, and the fair value thereof in current  money  of  the
United States;
  (g)  the  entity's liabilities and indebtedness, bonded and otherwise,
and the fair value thereof in current money of the United States;
  (h) any agreements entered into with the town or towns  in  which  the
entity is situated in order to carry out the dissolution;
  (i)  the  manner  and  means by which the residents of the entity will
continue to be  furnished  municipal  services  following  the  entity's
dissolution;
  (j)  terms for the disposition of the entity's assets and the disposi-
tion of  its  liabilities  and  indebtedness,  including  the  levy  and
collection of the necessary taxes and assessments therefor;
  (k)  findings as to whether any local laws, ordinances, rules or regu-
lations of the entity shall remain in effect after the effective date of
the dissolution or shall remain in effect for a  period  of  time  other
than as provided by section seven hundred eighty-nine of this title;
  (l) the effective date of the dissolution;
  (m)  the  time and place or places for a public hearing or hearings on
such proposed dissolution plan pursuant to section seven hundred  eight-
y-four of this title; [and]
  (n)  THE PROJECTED CHANGE, IF ANY, IN PROPERTY TAXES FOR THE TAXPAYERS
LOCATED IN THE LOCAL GOVERNMENT ENTITY TO BE DISSOLVED;
  (O) THE PROJECTED CHANGE, IF ANY, IN PROPERTY TAXES FOR THE  TAXPAYERS
OF THE TOWN OUTSIDE OF THE LOCAL GOVERNMENT ENTITY TO BE DISSOLVED;
  (P) A FISCAL ESTIMATE OF THE COST OF AND SAVINGS WHICH MAY BE REALIZED
FROM DISSOLUTION, INCLUDING BUT NOT LIMITED TO THE FOLLOWING:
  (I) INCREASED EFFICIENCIES THROUGH IMPROVED ECONOMIES OF SCALE;
  (II)  DISCONTINUING  AND/OR  RESTRUCTURING THE PROVISION OF PARTICULAR
SERVICES, AND THE EXTENT TO  WHICH  DISCONTINUING  AND/OR  RESTRUCTURING
SUCH SERVICES MAY ONLY BE ACHIEVED THROUGH DISSOLUTION;
  (III) THE ELIMINATION OF ELECTED OFFICES;
  (IV)  INCREASED  AID  FROM THE STATE TO THE RESULTING LOCAL GOVERNMENT
ENTITY; AND
  (V) THE EXTENT TO WHICH SERVICES WILL NO LONGER  BE  PROVIDED  THROUGH
THE USE OF VOLUNTEERS;
  (Q)  WHETHER THE DISSOLUTION WILL RESULT IN A NET INCREASE OR DECREASE
IN THE STATE'S LOCAL GOVERNMENT ENTITIES AS THAT TERM IS DEFINED IN THIS
ARTICLE; AND
  (R) any other matter desirable or necessary to carry out  the  dissol-
ution.
  6. A PUBLIC HEARING SHALL BE HELD ON THE FINALIZED PLAN AFTER AT LEAST
SEVEN  DAYS NOTICE, PUBLISHED IN A NEWSPAPER WITH GENERAL CIRCULATION IN
THE LOCAL GOVERNMENT ENTITY. AFTER CONDUCTING SUCH PUBLIC  HEARING,  THE
COMMISSION  FORMED PURSUANT TO SUBDIVISION ONE OF THIS SECTION MUST FILE
A FINALIZED DISSOLUTION PLAN AND  THE  COMMISSION'S  RECOMMENDATIONS  ON
WHETHER  TO  DISSOLVE  THE LOCAL GOVERNMENT ENTITY WITH THE CLERK OF THE
LOCAL GOVERNMENT ENTITY WHO MUST IMMEDIATELY DELIVER THE PLAN AND RECOM-
MENDATIONS TO THE LOCAL GOVERNMENT ENTITY'S GOVERNING BODY.
  S 13. Subdivision 1 of section 784 of the general  municipal  law,  as
added by chapter 74 of the laws of 2009, is amended to read as follows:
  1.  The  governing body of the local government entity to be dissolved
shall set a time and place or places for one or more public hearings  on
the proposed elector initiated dissolution plan. The hearing or hearings
shall be held no less than thirty-five days and no more than ninety days

S. 7238                            11

after  [the  proposed  elector  initiated  dissolution plan is approved]
RECEIVING THE DISSOLUTION PLAN RECOMMENDATIONS pursuant to section seven
hundred eighty-two of this title. Any interested person shall be given a
reasonable opportunity to be heard on any aspect of the proposed dissol-
ution.
  S 14. Section 785 of the general municipal law, as added by chapter 74
of the laws of 2009, is amended to read as follows:
  S 785. [Effective date of] REFERENDUM ON THE elector initiated dissol-
ution  plan[;  permissive  referendum].  1.  [A  local government entity
dissolved pursuant  to  an  elector  initiated  dissolution  plan  shall
continue  to  be governed as before dissolution until the effective date
of the dissolution specified in the elector initiated dissolution  plan,
which date shall be no less than forty-five days after final approval of
such  plan pursuant to subdivision three of section seven hundred eight-
y-four or subdivision three of section seven hundred eighty-six of  this
title.
  2.  Notwithstanding  subdivision one of this section, the] THE elector
initiated dissolution plan shall not take  effect  [if,  no  later  than
forty-five  days  after final approval of such plan pursuant to subdivi-
sion three of section seven hundred eighty-four or subdivision three  of
section  seven  hundred  eighty-six of this title, electors of the local
government entity to be dissolved shall:
  (a) file an original petition, containing not less than the number  of
signatures  provided for in subdivision three of this section, seeking a
referendum on the question whether  the  elector  initiated  dissolution
plan  shall  take effect, with the clerk of the town in which the entity
or the greater portion of its territory is located, except that  if  the
entity  is  a village the original petition of electors from the village
shall be filed with the clerk of the village; and
  (b) thereafter less than] UNLESS a majority of the  electors  vote  in
the affirmative on such question at a referendum.
  [3.  The  petition  shall  be  circulated, signed and authenticated in
substantial compliance with the  provisions  of  section  seven  hundred
seventy-nine  of  this  title,  shall contain the signatures of at least
twenty-five percent of the number of electors or fifteen thousand  elec-
tors, whichever is less, in the local government entity to be dissolved,
and  shall  be accompanied by a cover sheet containing the name, address
and telephone number of an individual who signed the  petition  and  who
will serve as a contact person.
  4.  Within ten days of the filing of the petition seeking a referendum
on whether the elector initiated dissolution plan shall take effect, the
clerk with whom the petition was filed shall make a final  determination
regarding  the  sufficiency  of the number of signatures on the petition
and provide timely written notice of such determination to  the  contact
person  named  in the cover sheet accompanying the petition. The contact
person or any individual who  signed  the  petition  may  seek  judicial
review  of such determination in a proceeding pursuant to article seven-
ty-eight of the civil practice law and rules. Upon the clerk's  determi-
nation  that  the  petition contains no less than the required number of
signatures, the governing body of the  local  government  entity  to  be
dissolved  shall  within  thirty  days  enact a resolution calling for a
referendum by the electors on the question whether the elector initiated
dissolution plan shall take effect and set a date for such referendum in
accordance with subdivision five of this section.
  5.] 2. The referendum on the question OF whether the elector initiated
dissolution plan shall take effect shall  be  submitted  at  [a  special

S. 7238                            12

election  to  be held not less than sixty or more than ninety] THE LOCAL
GOVERNMENT ENTITY'S NEXT GENERAL ELECTION OR AT  THE  NEXT  ELECTION  TO
FILL  A  VACANCY  IN  OFFICE  FOR  A LOCAL ELECTED OFFICIAL OF THE LOCAL
GOVERNMENT  ENTITY, WHICHEVER IS SOONER, BUT IN NO CASE MAY THE REFEREN-
DUM BE HELD SOONER THAN FORTY-FIVE days after enactment of a  resolution
APPROVING  THE  FINAL  VERSION OF THE ELECTOR INITIATED DISSOLUTION PLAN
pursuant to subdivision [four] THREE of [this section, provided,  howev-
er,  that in cases where a town or village general election falls within
such period, the referendum question may be considered during a town  or
village  general  election]  SECTION  SEVEN  HUNDRED EIGHTY-FOUR OF THIS
TITLE.
  [6.] 3. Notice of the referendum shall be given to the electors of the
local government entity to be dissolved by publication  in  a  newspaper
having  a  general  circulation  within  the boundaries of the entity at
least once a week for four consecutive weeks immediately  prior  to  the
referendum. The notice shall include, but not be limited to:
  (a)  a summary of the contents of the resolution and elector initiated
dissolution plan;
  (b) a statement as to where may be examined a copy of  the  resolution
and elector initiated dissolution plan;
  (c) the time and place or places at which the referendum will be held,
in accordance with subdivision five of this section; and
  (d)  such  other  matters as may be necessary to call, provide for and
give notice of the referendum and to provide for the conduct thereof and
the canvass of the returns thereupon.
  [7.] 4. In a referendum held pursuant to this section, the  referendum
question  shall  be  placed  before the electors of the local government
entity to be dissolved in a form reading substantially as follows:
  "The voters of the (insert type and name of local government entity to
be dissolved) having previously voted to  dissolve,  shall  the  elector
initiated dissolution plan take effect?
  YES ____
  NO ____"
  [8.]  5.  The elector initiated dissolution plan shall not take effect
unless a majority of the electors voting in the local government  entity
to  which  the petition applies votes in favor of dissolution. If such a
majority vote does not result, the referendum shall fail and dissolution
shall not take effect.
  6. IF THE REFERENDUM SHALL FAIL, THE DISSOLUTION PROCESS SPECIFIED  BY
THIS  TITLE  SHALL  NOT  BE INITIATED FOR THE LOCAL GOVERNMENT ENTITY BY
ELECTORATE PETITION PURSUANT TO SECTION SEVEN  HUNDRED  SEVENTY-NINE  OF
THIS TITLE WITHIN FOUR YEARS OF THE DATE OF THE REFERENDUM.
  S 15. Subdivision 2 of section 33-a of the municipal home rule law, as
amended  by  chapter  74  of  the  laws  of  2009, is amended to read as
follows:
  2. Any such local law, or an  amendment  or  repeal  of  one  or  more
provisions  thereof which would have the effect of transferring or abol-
ishing a function or duty  of  the  county  or  of  the  cities,  towns,
villages, districts or other units of government wholly contained in the
county,  shall not become operative unless and until it is approved at a
general election or at a special election, held in the county by receiv-
ing a majority of the total votes cast thereon: (a) in the area  of  the
county outside of cities and (b) in the area of cities of the county, if
any,  considered as one unit, and if it provides for the transfer of any
function or duty to or from any village or  for  the  abolition  of  any
office,  department,  agency  or  unit of government of a village wholly

S. 7238                            13

contained in the county, it shall not take effect unless it  shall  also
receive  a majority of [all] the votes cast thereon in [all] EACH OF the
villages OR LOCAL UNITS OF GOVERNMENT so  affected  [considered  as  one
unit].  Such a local law, amendment or repeal thereof, shall provide for
its submission to the  electors  of  the  county  at  the  next  general
election  or  at  a special election, occurring not less than sixty days
after the adoption thereof by the board of supervisors.
  S 16. This act shall take effect immediately.