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

                                  6620

                            I N  S E N A T E

                            February 1, 2016
                               ___________

Introduced by Sens. RITCHIE, YOUNG, AKSHAR, FUNKE, O'MARA -- (at request
  of  the  Legislative  Commission on Rural Resources) -- read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Health

AN  ACT to amend the public health law and the real property tax law, in
  relation to authorizing real property taxing jurisdictions to grant  a
  tax  exemption  for  a primary residence purchased by a physician in a
  physician shortage area; and to amend the real property  tax  law,  in
  relation  to providing state aid to such jurisdictions for the savings
  granted by such exemption

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

  Section  1.    Legislative findings and intent. The legislature hereby
finds that several communities  within  the  state,  particularly  those
located  within  rural  areas, lack adequate access to physicians. It is
well established that ensuring the sufficient  availability  of  general
practitioners  and  specialists  directly  benefits  the health of state
residents, and the legislature has enacted several measures towards that
end.
  Furthermore, the legislature finds that municipalities are often  best
situated  to  evaluate  the needs of their communities. Therefore, it is
the intent of the legislature to offer counties, cities, towns, villages
and school districts the option to provide real property tax exemptions,
should they determine that such an incentive  would  aid  in  attracting
physicians to areas currently underserved by the medical community.
  S  2.  Section 206 of the public health law is amended by adding a new
subdivision 30 to read as follows:
  30. (A) THE COMMISSIONER SHALL BIENNIALLY DESIGNATE AND MAKE AVAILABLE
A LIST OF DESIGNATED PHYSICIAN SHORTAGE AREAS IN THE STATE. A DESIGNATED
PHYSICIAN SHORTAGE AREA SHALL BE A COUNTY OR OTHER SUB-COUNTY GEOGRAPHIC
AREA DETERMINED BY THE COMMISSIONER TO BE IN SHORT SUPPLY OF  PHYSICIANS
IN  PRIMARY  CARE  PRACTICE AND/OR ONE OR MORE MEDICAL SPECIALITIES. THE
LIST SHALL INDICATE FOR EACH DESIGNATED PHYSICIAN SHORTAGE AREA, IF  THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06122-04-6
              

S. 6620                             2

AREA  IS  IN  SHORT  SUPPLY OF PRIMARY CARE PHYSICIANS AND WHICH MEDICAL
SPECIALITIES ARE IN SHORT SUPPLY IN THE DESIGNATED SHORTAGE AREA.
  (B)  IN  ESTABLISHING DESIGNATED PHYSICIAN SHORTAGE AREAS, THE COMMIS-
SIONER, TO THE EXTENT PRACTICABLE,  SHALL  UTILIZE  CRITERIA  CONSISTENT
WITH  THE  CRITERIA  UTILIZED  TO MAKE AWARDS FOR THE PHYSICIAN PRACTICE
SUPPORT PROGRAM ESTABLISHED PURSUANT TO  PARAGRAPH  (E)  OF  SUBDIVISION
FIVE-A OF SECTION TWENTY-EIGHT HUNDRED SEVEN-M OF THIS CHAPTER.
  (C)  FOR  THE  PURPOSES  OF  THIS  SUBDIVISION,  "MEDICAL SPECIALTY OR
SPECIALTY AREA" SHALL MEAN THE BRANCH OR BRANCHES OF SPECIAL  COMPETENCE
WITHIN  A  PHYSICIAN'S  MEDICAL  PRACTICE  AS EVIDENCED BY THEIR CERTIF-
ICATION BY A SPECIALITY MEDICAL BOARD ACCEPTABLE TO THE COMMISSIONER.
  S 3. The real property tax law is amended by adding a new section  439
to read as follows:
  S  439.  REAL PROPERTY TAX EXEMPTIONS IN DESIGNATED PHYSICIAN SHORTAGE
AREA. 1. A MUNICIPAL CORPORATION OR  SCHOOL  DISTRICT  MAY  EXEMPT  REAL
PROPERTY  PURCHASED  BY A PHYSICIAN FOR USE SOLELY AS HIS OR HER PRIMARY
RESIDENCE, TO THE EXTENT PROVIDED IN THIS SECTION, FROM TAXATION BY SUCH
MUNICIPAL CORPORATION OR SCHOOL DISTRICT IF THE PHYSICIAN RESIDES IN AND
HAS AN OFFICE LOCATED WITHIN A PHYSICIAN SHORTAGE AREA AS DESIGNATED  BY
THE COMMISSIONER OF HEALTH PURSUANT TO SUBDIVISION THIRTY OF SECTION TWO
HUNDRED  SIX  OF  THE  PUBLIC  HEALTH LAW.   AFTER A PUBLIC HEARING, THE
GOVERNING BODY OF A MUNICIPAL CORPORATION MAY ADOPT A LOCAL LAW, AND THE
BOARD OF A SCHOOL DISTRICT, OTHER THAN  A  SCHOOL  DISTRICT  SUBJECT  TO
ARTICLE FIFTY-TWO OF THE EDUCATION LAW, MAY ADOPT A RESOLUTION, TO GRANT
THE EXEMPTION AUTHORIZED PURSUANT TO THIS SECTION.
  2.  EXEMPTIONS  PROVIDED  PURSUANT  TO SUBDIVISION ONE OF THIS SECTION
SHALL ONLY APPLY TO REAL PROPERTY PURCHASED ON OR  AFTER  THE  EFFECTIVE
DATE  OF  THIS  SECTION,  AND THE SUBSEQUENT ENACTMENT OF A LOCAL LAW OR
ADOPTION OF A RESOLUTION TO GRANT SUCH REAL PROPERTY TAX EXEMPTION.
  3. ANY LOCAL LAW OR RESOLUTION ADOPTED PURSUANT TO SUBDIVISION ONE  OF
THIS  SECTION  SHALL  ESTABLISH  THE  DURATION AND PERCENTAGE OF SUCH AN
EXEMPTION, WHICH SHALL EXCEED NEITHER A PERIOD OF FIVE YEARS  NOR  THIR-
TY-FIVE  PERCENT  OF  THE  PROPERTY'S  ASSESSED VALUE. SUCH LOCAL LAW OR
RESOLUTION MAY INCLUDE OTHER CONDITIONS OR RESTRICTIONS,  INCLUDING  BUT
NOT  LIMITED TO PROVISIONS REGARDING THE MAXIMUM VALUE OF ELIGIBLE PROP-
ERTY, AT THE DISCRETION OF THE  PROMULGATING  MUNICIPAL  CORPORATION  OR
SCHOOL DISTRICT.
  4.  A  COPY  OF SUCH LOCAL LAWS OR RESOLUTIONS SHALL BE FILED WITH THE
STATE BOARD AND THE ASSESSOR FOR SUCH MUNICIPAL  CORPORATION  OR  SCHOOL
DISTRICT  WHO  PREPARES THE ASSESSMENT ROLL UPON WHICH THE TAXES OF SUCH
MUNICIPAL CORPORATION OR SCHOOL DISTRICT ARE LEVIED.
  S 4. The real property tax law is amended by adding a new section  985
to read as follows:
  S  985. EFFECT OF EXEMPTION IN DESIGNATED PHYSICIAN SHORTAGE AREAS. 1.
IN A MUNICIPAL CORPORATION OR SCHOOL DISTRICT WHICH  ELECTS  TO  PROVIDE
THE  REAL PROPERTY TAX EXEMPTION IN A DESIGNATED PHYSICIAN SHORTAGE AREA
PURSUANT TO SECTION FOUR HUNDRED THIRTY-NINE OF THIS CHAPTER, THE AMOUNT
OF TAXES TO BE LEVIED FOR ANY TAX YEAR OR SCHOOL YEAR, AS THE  CASE  MAY
BE,  SHALL  BE DETERMINED WITHOUT REGARD TO THE FACT THAT STATE AID WILL
BE PAYABLE PURSUANT TO THIS SECTION. IN ADDITION, THE TAX RATE  FOR  ANY
SUCH  YEAR SHALL BE DETERMINED AS IF NO PARCELS ARE EXEMPT FROM TAXATION
PURSUANT TO SECTION FOUR HUNDRED THIRTY-NINE OF THIS  CHAPTER.  HOWEVER,
THE  TAX  RATE  SO  DETERMINED  SHALL BE APPLIED TO THE TAXABLE ASSESSED
VALUE OF EACH PARCEL AFTER ACCOUNTING  FOR  ALL  APPLICABLE  EXEMPTIONS,
INCLUDING  THE  EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED THIRTY-NINE
OF THIS CHAPTER.

S. 6620                             3

  2. THE TAX SAVINGS FOR EACH PARCEL RECEIVING THE EXEMPTION  AUTHORIZED
BY SECTION FOUR HUNDRED THIRTY-NINE OF THIS CHAPTER SHALL BE COMPUTED BY
SUBTRACTING  THE  AMOUNT  ACTUALLY  LEVIED  AGAINST  THE PARCEL FROM THE
AMOUNT THAT WOULD HAVE BEEN LEVIED IF NOT FOR THE EXEMPTION.
  3.  (A) THE TOTAL TAX SAVINGS DULY PROVIDED BY A MUNICIPAL CORPORATION
OR SCHOOL DISTRICT PURSUANT TO THIS SECTION SHALL  BE  A  STATE  CHARGE,
WHICH SHALL BE PAYABLE AS PROVIDED IN THIS SUBDIVISION.
  (B)  A  MUNICIPAL  CORPORATION  OR  SCHOOL  DISTRICT SEEKING STATE AID
PURSUANT TO THIS SUBDIVISION SHALL SUBMIT AN APPLICATION THEREFOR TO THE
COMMISSIONER. THE APPLICATION SHALL  INCLUDE  SUCH  INFORMATION  AS  THE
COMMISSIONER SHALL REQUIRE.
  (C)  UPON  APPROVING  AN  APPLICATION  FOR  STATE AID PURSUANT TO THIS
SUBDIVISION, THE COMMISSIONER SHALL COMPUTE AND CERTIFY THE AMOUNT PAYA-
BLE TO A MUNICIPAL CORPORATION OR SCHOOL DISTRICT. SUCH STATE AID  SHALL
BE  PAYABLE  UPON  THE  AUDIT  AND WARRANT OF THE STATE COMPTROLLER FROM
VOUCHERS CERTIFIED AND APPROVED BY THE COMMISSIONER.
  S 5. This act shall take effect immediately and  shall  apply  to  tax
years  beginning  on  or  after  the first of March next succeeding such
effective date; or in the case of  municipal  taxing  authorities  which
have  a  taxable status date other than March first established by char-
ter, this act shall take effect with  the  first  establishment  of  the
taxable  status of real property in the municipality next succeeding the
effective date of this act.