S T A T E   O F   N E W   Y O R K
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                                 9151--A

                          I N  A S S E M B L Y

                             March 20, 2014
                               ___________

Introduced  by  M.  of  A.  TEDISCO,  STECK,  McDONALD  -- read once and
  referred to the Committee on Education -- committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee

AN ACT to establish  a  semiconductor  manufacturing  tax  stabilization
  reserve  fund in the Ballston Spa Central School District to lessen or
  prevent increases in the school district's real property tax levy

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

  Section 1. Legislative findings. The legislature hereby finds that the
private  development  and  ownership  of  a  semiconductor manufacturing
project or projects located  within  the  Ballston  Spa  Central  School
District may result in the instability in the real property tax base and
the  budgets of the district due to the uncertainty with the assessments
of such semiconductor manufacturing project or projects  and  the  vari-
ability  of the payments in lieu of taxes prior to and at termination of
such payments.
  S 2. Definitions. As used in this act:
  (a) "Board of education" or "board" means the board  of  education  of
the Ballston Spa Central School District.
  (b)  "Semiconductor  manufacturing  tax stabilization reserve fund" or
"fund" means the semiconductor manufacturing tax  stabilization  reserve
fund established pursuant to this act.
  (c)  "Payments  in lieu of taxes" or "payments" means payments in lieu
of taxes receivable by the school district pursuant to contracts entered
into in accordance with section 412-a of the real property  tax  law  or
section  858  of the general municipal law on any semiconductor manufac-
turing project or projects located wholly or partially within the  Ball-
ston Spa Central School District.
  (d)  "School  district"  or  "district" means the Ballston Spa Central
School District.
  (e) "Semiconductor manufacturing project or projects" shall be defined
as in section 412-a of the real property tax law and shall  include  the
land  upon  which the project is located, buildings for use in the manu-

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

                                                           LBD14277-05-4

A. 9151--A                          2

facturing of semiconductors and the acquisition and installation therein
of certain machinery and equipment.
  S  3.  The  board of education is hereby authorized to establish a tax
stabilization reserve fund to lessen or prevent increases in the  school
district's  real  property  tax levy resulting from decreases in revenue
due to changes in the amount of or termination of payments  in  lieu  of
taxes  receivable by the school district provided, however, that no such
fund shall be established unless approved by  a  majority  vote  of  the
qualified voters of the district present and voting on a separate ballot
proposition  therefor  at  either  a  special district meeting which the
board of education may call for such purposes, or at the annual district
meeting and election, to be noticed and  conducted  in  either  case  in
accordance  with  the  provisions  of  article  41 of the education law.
Moneys shall be paid into and withdrawn from  the  fund,  and  the  fund
shall be administered, as follows:
  (a) For any school district fiscal year commencing after the effective
date  of this act and after the establishment of the semiconductor manu-
facturing tax stabilization reserve fund, the  board  of  education  may
determine  that  there shall be paid into the fund all or any portion of
the amount by which the payments in lieu  of  taxes  receivable  by  the
school  district for such fiscal year is greater than the amount of such
payments received by the school district for the preceding fiscal  year,
provided  that  no payment into the reserve fund shall cause the balance
of the fund to exceed  the  amount  approved  in  a  ballot  proposition
described above.
  (b)  The  board  of  education is hereby authorized to make a one-time
deposit into the semiconductor manufacturing tax  stabilization  reserve
fund  in  an  amount  not  to  exceed  the  amount of funds remaining in
reserves previously set aside in relation  to  article  VII  proceedings
related to the semiconductor manufacturing facility.
  (c)  Moneys  may be withdrawn from the semiconductor manufacturing tax
stabilization reserve fund subject to the following limitations:
  (1) For any fiscal year for which payments in lieu of taxes receivable
by the school district  are  less  than  the  amount  of  such  payments
received  for  the  immediately  preceding  fiscal  year,  or the school
district does not anticipate receiving any payment, the board of  educa-
tion may authorize a withdrawal from the fund in an amount not to exceed
the  amount  of the payments received for the immediately preceding year
less the amount of the payments receivable for the fiscal year for which
the budget and tax levy is being determined.
  (2) Notwithstanding paragraph 1 of this subdivision, and  in  addition
to any withdrawal from the fund authorized pursuant to this subdivision,
moneys may be withdrawn from the fund for any fiscal year to be expended
for any other lawful purpose, provided, however, that no such withdrawal
and  expenditure shall be made unless approved by a majority vote of the
qualified voters of the district present and voting on a separate ballot
proposition therefor at either a  special  district  meeting  which  the
board  of education may call for such purpose, or at the annual district
meeting and election, to be noticed and  conducted  in  either  case  in
accordance with the provisions of article 41 of the education law.
  (d)  The  moneys  in the semiconductor manufacturing tax stabilization
reserve fund shall be deposited,  invested  and  accounted  for  in  the
manner provided for in subdivisions 2 and 6 of section 3651, and section
3652 of the education law.
  S  4. When computing the school district's tax levy limit for a school
year pursuant to subdivision 3 of section 2023-a of the education law:

A. 9151--A                          3

  (a) The payments in lieu of taxes receivable for the prior school year
shall be decreased by any amount paid into the semiconductor manufactur-
ing tax stabilization reserve  fund  for  such  prior  school  year  and
increased  by  any  amount withdrawn from the fund for such prior school
year.
  (b) The payments in lieu of taxes receivable in the coming fiscal year
shall be decreased by the amount to be paid into the semiconductor manu-
facturing tax stabilization reserve fund for such coming fiscal year and
increased  by any amount to be withdrawn from the semiconductor manufac-
turing tax stabilization reserve fund for such coming fiscal year.
  S 5. This act shall take effect immediately, and shall  be  deemed  to
have been in full force and effect on and after May 19, 2014.