S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6783
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               June 16, 2017
                                ___________
 
 Introduced by Sens. HELMING, DeFRANCISCO, FUNKE, GRIFFO, LITTLE, O'MARA,
   ORTT,  RITCHIE,  ROBACH,  YOUNG -- read twice and ordered printed, and
   when printed to be committed to the Committee on Rules
 
 AN ACT to create the Lake Ontario-St. Lawrence Seaway flood recovery and
   International Joint Commission  Plan  2014  mitigation  grant  program
   (Part  A);  providing  for  real  property tax refunds and credits for
   participation in the Lake Ontario and connected  waterways  assessment
   relief  act;  and  to  amend  the local finance law in relation to the
   financing of such refunds and credits (Part B); and to amend  the  tax
   law,  in  relation  to  exempting  certain distributions from eligible
   retirement plans for income tax purposes (Part C)
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This  act enacts into law major components of legislation
 relating to creating the Lake Ontario - St. Lawrence Seaway flood recov-
 ery and  International  Joint  Commission  Plan  2014  mitigation  grant
 program  and  establishing  real  property  tax  refunds and credits for
 participation in the Lake Ontario  and  connected  waterways  assessment
 relief  act. Each component is wholly contained within a Part identified
 as Parts A through C. The effective date for each  particular  provision
 contained  within  such  Part  is  set forth in the last section of such
 Part. Any provision in any section contained within  a  Part,  including
 the effective date of the Part, which makes a reference to a section "of
 this act", when used in connection with that particular component, shall
 be  deemed to mean and refer to the corresponding section of the Part in
 which it is found. Section three of this  act  sets  forth  the  general
 effective date of this act.
 
                                  PART A
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13162-09-7

              

 S. 6783                             2
 
   Section  1.  There  is  hereby  created  the Lake Ontario-St. Lawrence
 Seaway flood recovery and International Joint Commission Plan 2014 miti-
 gation grant program.
   1.  When used in this act, the term "covered waterway" shall mean Lake
 Ontario, the St. Lawrence river, Seneca  lake,  the  Seneca  river,  the
 Oswego river, the Oneida river, Oneida lake and Cross lake.
   2. (a) Small businesses, farms, owners of multiple dwellings, homeown-
 ers associations, and not-for-profit organizations that sustained direct
 physical  flood-related  damage  as  a  result of flooding caused by the
 raised level of any covered waterway, that occurred between  January  1,
 2017  and  June  30,  2017, shall be eligible to apply for a grant under
 this subdivision.
   (b) Such grant shall be in an amount  of  no  more  than  $30,000  for
 owners  of  multiple dwellings and no more than $100,000 for small busi-
 nesses, farms, homeowners associations and not-for-profit  corporations,
 and  shall  be  used for storm-related repairs and restoration to struc-
 tures, equipment, and for other storm-related costs, all of  which  were
 not covered by any other federal, state or local recovery program or any
 third-party payors.
   (c)  The  empire  state  development corporation shall administer this
 grant program, which shall not exceed in the aggregate $25,000,000. Such
 corporation is hereby empowered to establish grant guidelines and  addi-
 tional  eligibility  criteria,  based  on  available  flood  damage data
 provided by applicable state and/or federal agencies, as it deems neces-
 sary to effectuate the administration  of  this  program.  In  providing
 assistance  pursuant  to  this subdivision, the empire state development
 corporation shall give preference to  applicants  that  demonstrate  the
 greatest need, based on available flood damage data provided by applica-
 ble state and/or federal agencies.
   3.  (a)  Owners of residences that sustained direct physical flood-re-
 lated damage as a result of flooding caused by the raised level  of  any
 covered  waterway,  that  occurred  between January 1, 2017 and June 30,
 2017, shall be eligible to apply for a grant under this subdivision.
   (b) Such grant shall be in an amount of no more than $60,000 and shall
 be used for storm-related repairs and restoration to structures,  equip-
 ment,  and  for other storm-related costs, all of which were not covered
 by any other federal, state or local recovery program or any third-party
 payors.
   (c) The empire state development  corporation  shall  administer  this
 grant program, which shall not exceed in the aggregate $15,000,000. Such
 corporation  is hereby empowered to establish grant guidelines and addi-
 tional eligibility  criteria,  based  on  available  flood  damage  data
 provided by applicable state and/or federal agencies, as it deems neces-
 sary  to  effectuate  the  administration  of this program. In providing
 assistance pursuant to this subdivision, the  empire  state  development
 corporation  shall  give  preference  to applicants that demonstrate the
 greatest need, based on available flood damage data provided by applica-
 ble state and/or federal agencies.
   4. (a) Counties, cities, towns, villages and  special  districts  that
 sustained  direct  physical flood-related damage as a result of flooding
 caused by the raised  level  of  any  covered  waterway,  that  occurred
 between  January  1, 2017 and June 30, 2017, are eligible to apply for a
 grant under this subdivision.
   (b) Such grant shall be in an amount of no more  than  $1,000,000  and
 shall  be  used  for  storm-related repairs and restoration to municipal
 infrastructure and systems, including, but not limited to, roads, bridg-

 S. 6783                             3
 
 es and other transportation systems, drinking  water  systems,  sanitary
 and/or  storm  sewer  systems, levee and/or flood protection systems, as
 well as for municipal equipment, and for other storm-related costs,  all
 of  which were not covered by any other federal, state or local recovery
 program or any third-party payors.
   (c) The empire state development  corporation  shall  administer  this
 grant program, which shall not exceed in the aggregate $25,000,000. Such
 corporation  is hereby empowered to establish grant guidelines and addi-
 tional eligibility  criteria,  based  on  available  flood  damage  data
 provided by applicable state and/or federal agencies, as it deems neces-
 sary  to  effectuate  the  administration  of this program. In providing
 assistance pursuant to this subdivision, the  empire  state  development
 corporation  shall  give  preference  to applicants that demonstrate the
 greatest need, based on available flood damage data provided by applica-
 ble state and/or federal agencies.
   5. (a) The empire state development corporation, in consultation  with
 the  department  of  environmental  conservation  and  the environmental
 facilities corporation, shall administer a grant  program  for  counties
 for flood mitigation or flood control projects in lakes, rivers, creeks,
 streams, and brooks. Only counties that sustained direct physical flood-
 related damage as a result of the flooding caused by the raised level of
 any  covered  waterway, between January 1, 2017 and June 30, 2017, shall
 be eligible to apply for a grant under this subdivision.
   (b) This grant program shall not exceed in the aggregate  $15,000,000.
 Individual  grants  shall  be  not  less than $300,000 and not more than
 $500,000, provided however, counties may jointly apply for such  grants,
 and  the  amount  for such joint grants may equal the sum of the amounts
 that would have been separately available  to  the  individual  counties
 making such joint application.
   (c) The empire state development corporation, in consultation with the
 department  of  environmental conservation and the environmental facili-
 ties corporation, is hereby empowered to establish grant guidelines  and
 additional  eligibility  criteria,  based on available flood damage data
 provided by applicable state and/or federal agencies, as it deems neces-
 sary to effectuate the administration  of  this  program.  In  providing
 assistance  pursuant  to  this subdivision, the empire state development
 corporation shall give preference to  applicants  that  demonstrate  the
 greatest need, based on available flood damage data provided by applica-
 ble  state  and/or  federal  agencies  including the International Joint
 Commission.  Priority also may be given  to  remediation  which  if  not
 undertaken may result in additional flooding.
   6.  (a) Municipalities and special districts in the county of Chautau-
 qua, Cattaraugus and  Allegany  that  sustained  direct  physical  flood
 related damage as a result of a severe storm and flooding which occurred
 on  July  14  and  15, 2015 are eligible to apply for a grant under this
 subdivision.
   (b) Municipalities and special districts in the county of Monroe  that
 sustained  direct  physical storm related damage as a result of a severe
 storm which occurred on March 8 and 9, 2017 are also eligible  to  apply
 for a grant under this subdivision.
   (c)  Grants  under  paragraph  (a) of this subdivision, shall be in an
 amount of not more than $1,000,000. Grants under paragraph (b)  of  this
 subdivision, shall be in an amount of not more than $500,000.
   (d)  Grants  under paragraph (a) of this subdivision, shall be used by
 grant recipients to repair damage to  public  infrastructure,  including
 publicly  owned  roads,  bridges, drainage and flood mitigation systems,

 S. 6783                             4
 
 and any ancillary infrastructure necessary for the safe operation of the
 components thereof.   Grants under paragraph (b)  of  this  subdivision,
 shall be used by grant recipients for excess personnel costs and related
 contractual  services necessary to making infrastructure safe for public
 use in time of the emergency.
   (e) All such grants under  this  subdivision  must  be  for  costs  or
 repairs  which  were  not  covered  by any other federal, state or local
 recovery program or any third-party payers. In no event  shall  a  grant
 under  this  subdivision  be  used  for  infrastructure repairs that are
 required due to normal wear and tear.
   (f) The empire state development  corporation  shall  administer  this
 grant program, which shall not exceed in the aggregate $10,000,000. Such
 corporation  is hereby empowered to establish grant guidelines and addi-
 tional eligibility  criteria,  based  on  available  flood  damage  data
 provided by applicable state and/or federal agencies, as it deems neces-
 sary  to  effectuate  the  administration  of this program. In providing
 assistance pursuant to this subdivision, the  empire  state  development
 corporation  shall  give  preference  to applicants that demonstrate the
 greatest need, based on available flood damage data provided by applica-
 ble state and/or federal agencies.
   § 2. Interagency response team. (a)  The  governor  shall  convene  an
 interagency  response  team to assist in the development and implementa-
 tion of the Lake Ontario-St. Lawrence Seaway flood recovery and Interna-
 tional Joint Commission  Plan  2014  mitigation  grant  program  and  to
 provide  for  a coordinated state response to the flooding caused by the
 raised level of any covered waterway, between January 1, 2017  and  June
 30, 2017, referred to in this section as the "flooding".
   (b)  The  interagency  response  team shall consist of representatives
 from the empire state  development  corporation;  division  of  homeland
 security  and  emergency  services;  division  of  housing and community
 renewal; department of  environmental  conservation;  office  of  parks,
 recreation  and historic preservation; department of health; division of
 state police; department of transportation; office of general  services;
 department  of state; division of military and naval affairs; department
 of corrections and community supervision;  department  of  labor;  state
 university  of New York; New York state thruway authority; department of
 taxation and finance; public service commission; and any other  agencies
 deemed  appropriate by the governor. The interagency response team shall
 also include representatives from municipalities affected by the  flood-
 ing,  not-for-profit  organizations  engaged  in  disaster  response and
 relief, and other local stakeholders affected by the flooding.
   (c) The role of the interagency response team  includes,  but  is  not
 limited  to:  developing a comprehensive multi-agency plan to respond to
 the flooding; assisting in the allocation and distribution of state  and
 federal  resources within the affected counties; developing criteria for
 the distribution of state or federal grant  funds,  including  the  Lake
 Ontario-St.  Lawrence  Seaway  flood  recovery  and  International Joint
 Commission Plan 2014 mitigation grant program; ensuring the availability
 and continued potability of drinking water supplies; developing  a  plan
 to  assist small businesses, farms, owners of multiple dwellings, owners
 of residences, and not-for-profit organizations with obtaining insurance
 coverage relating to flooding damage; and developing a multi-agency plan
 to respond to future water level increases or other  issues  related  to
 the International Joint Commission Plan 2014.

 S. 6783                             5
 
   §  3.  All  or  portions of the funds appropriated to the empire state
 development corporation may hereby be  made  available  to  support  the
 grants pursuant for the purposes of this act.
   § 4. This act shall take effect immediately.
 
                                  PART B

   Section  1.  Short  title. This act shall be known and may be cited as
 the "Lake Ontario and connected waterways assessment relief act".
   § 2. Definitions. For the purposes of this act,  the  following  terms
 shall have the following meanings:
   1.  "Eligible  county"  shall mean a county included in the governor's
 executive order 165 of 2017, declaring a state of emergency,  dated  May
 3, 2017.
   2.  "Eligible  municipality"  shall  mean  a municipal corporation, as
 defined by subdivision 10 of section 102 of the real property  tax  law,
 which  is  either: (a) an eligible county; or (b) a city, town, village,
 special district, or school district that is wholly or partly  contained
 within an eligible county.
   3.  "Impacted  tax  roll"  shall mean the final assessment roll or, if
 applicable, the final assessment rolls,  which  satisfies  both  of  the
 following  conditions:  (a) the roll is based upon a taxable status date
 occurring prior to May 3, 2017; and (b) taxes levied upon that  roll  by
 or  on behalf of a participating municipality are payable without inter-
 est on or after May 3, 2017.
   4. "Participating municipality" shall mean  an  eligible  municipality
 that  has  passed  a  local  law,  ordinance,  or resolution pursuant to
 section three of this act  to  provide  assessment  relief  to  property
 owners  within  such eligible municipality pursuant to the provisions of
 this act.
   5. "Flooding" shall mean the lake shore and inland flooding and accel-
 erated erosion that occurred as a  result  of  heavy  rainfall  and  the
 rising water level of Lake Ontario and any connected inland waterways or
 estuaries within an eligible county during the period beginning April 1,
 2017 and ending July 1, 2017.
   6.  "Total  assessed value" shall mean the total assessed value on the
 parcel prior to any and all exemption adjustments.
   7. "Improved value" shall mean the market value of the  real  property
 improvements excluding the land.
   8.  "Property"  shall  mean real property, property or land as defined
 under paragraphs (a) through (g) of subdivision 12 of section 102 of the
 real property tax law.
   §  3.  Local  option.  An  eligible  municipality  may  exercise   the
 provisions  of  this act if its governing body shall, by the forty-fifth
 day following the date upon which this act is approved by the  governor,
 pass a local law or in the case of a school district a resolution adopt-
 ing  the  provisions  of  this act. An eligible municipality may provide
 assessment relief for real property impacted by flooding located  within
 such  municipality as provided in paragraphs (a), (b), (c) and/or (d) of
 subdivision one of section four of this act only if its  governing  body
 specifically elected to do so as part of such local law or resolution.
   §  4.  Assessment  relief for flood victims in an eligible county.  1.
 Notwithstanding any provisions of law to the contrary, where real  prop-
 erty  impacted  by  flooding  is  located within a participating munici-
 pality, assessment relief shall be granted as follows:

 S. 6783                             6
 
   (a) If a participating municipality has elected to provide  assessment
 relief  for  real  property that lost at least ten percent but less than
 twenty percent of its improved value due to flooding, the assessed value
 attributable to the improvements shall be reduced by fifteen percent for
 purposes of the participating municipality on the impacted tax roll;
   (b)  If a participating municipality has elected to provide assessment
 relief for real property that lost at least twenty percent but less than
 thirty percent of its improved value due to flooding, the assessed value
 attributable to the improvements shall be reduced by twenty-five percent
 for purposes of the participating municipality on the impacted tax roll;
   (c) If a participating municipality has elected to provide  assessment
 relief for real property that lost at least thirty percent but less than
 forty  percent of its improved value due to flooding, the assessed value
 attributable to the improvements shall be reduced by thirty-five percent
 for purposes of the participating municipality on the impacted tax roll;
   (d) If a participating municipality has elected to provide  assessment
 relief  for real property that lost at least forty percent but less than
 fifty percent of its improved value due to flooding, the assessed  value
 attributable  to the improvements shall be reduced by forty-five percent
 for purposes of the participating municipality on the impacted tax roll;
   (e) If the property lost at least fifty percent but  less  than  sixty
 percent  of  its  improved  value  due  to  flooding, the assessed value
 attributable to the improvements shall be reduced by fifty-five  percent
 for purposes of the participating municipality on the impacted tax roll;
   (f)  If the property lost at least sixty percent but less than seventy
 percent of its improved  value  due  to  flooding,  the  assessed  value
 attributable  to the improvements shall be reduced by sixty-five percent
 for purposes of the participating municipality on the impacted tax roll;
   (g) If the property lost at least seventy percent but less than eighty
 percent of its improved  value  due  to  flooding,  the  assessed  value
 attributable  to  the  improvements  shall  be  reduced  by seventy-five
 percent for purposes of the participating municipality on  the  impacted
 tax roll;
   (h)  If the property lost at least eighty percent but less than ninety
 percent of its improved  value  due  to  flooding,  the  assessed  value
 attributable to the improvements shall be reduced by eighty-five percent
 for purposes of the participating municipality on the impacted tax roll;
   (i)  If  the  property  lost at least ninety percent but less than one
 hundred percent of its improved value  due  to  flooding,  the  assessed
 value  attributable  to the improvements shall be reduced by ninety-five
 percent for purposes of the participating municipality on  the  impacted
 tax roll; and
   (j) If the property lost one hundred percent of its improved value due
 to  flooding,  the assessed value attributable to the improvements shall
 be reduced by one hundred percent  for  purposes  of  the  participating
 municipality on the impacted tax roll.
   2.  The percentage loss in improved value for the purposes of subdivi-
 sion one of this section shall be adopted by the assessor, determined in
 a manner provided by this act, subject to review by the board of assess-
 ment review.
   3. No reduction in assessed value shall be granted  pursuant  to  this
 act  except  as  specified  in  subdivision one of this section for such
 counties. No reduction in assessed value shall be  granted  pursuant  to
 this  section  for purposes of any county, city, town, village or school
 district which has not adopted the provisions of this act.

 S. 6783                             7
 
   4. To receive such relief pursuant to this section, the property owner
 shall submit a written request to the assessor on a form approved by the
 commissioner of the department of taxation and finance within  120  days
 following  the  date  upon  which  this act is approved by the governor.
 Such  request  shall  attach  any  and  all reports prepared by, but not
 limited to, an insurance adjuster, real  property  appraiser  or  broker
 that  describe in reasonable detail the damage caused to the property by
 the flooding and the condition of the property  following  the  flooding
 and may be accompanied by any other supporting documentation.  A failure
 on  the  part  of  an  assessor  to act on an application for assessment
 relief for a property,  which  would  otherwise  be  eligible  for  such
 assessment  relief, shall be considered a clerical error under paragraph
 (c) of subdivision 2 of section 550 of the real property tax law.
   5. Upon receiving such a request, the assessor shall make  a  finding,
 as  to  whether  the  property  lost at least 50 percent of its improved
 value or, if a participating municipality has elected to provide assess-
 ment relief for real property that lost a lesser percentage of  improved
 value,  such  lesser  percentage  of  its  improved value as a result of
 flooding, and thereafter the  assessor,  shall  adopt  or  classify  the
 percentage loss of improved value within one of the following ranges:
   (a)  If a participating municipality has elected to provide assessment
 relief for real property that lost at least ten percent  but  less  than
 twenty  percent  of  its  improved  value  due to flooding, at least ten
 percent but less than twenty percent;
   (b) If a participating municipality has elected to provide  assessment
 relief for real property that lost at least twenty percent but less than
 thirty  percent  of  its improved value due to flooding, at least twenty
 percent but less than thirty percent;
   (c) If a participating municipality has elected to provide  assessment
 relief for real property that lost at least thirty percent but less than
 forty  percent  of  its  improved value due to flooding, at least thirty
 percent but less than forty percent;
   (d) If a participating municipality has elected to provide  assessment
 relief  for real property that lost at least forty percent but less than
 fifty percent of its improved value due  to  flooding,  at  least  forty
 percent but less than fifty percent;
   (e) At least fifty percent but less than sixty percent;
   (f) At least sixty percent but less than seventy percent;
   (g) At least seventy percent but less than eighty percent;
   (h) At least eighty percent but less than ninety percent;
   (i) At least ninety percent but less than one hundred percent; and
   (j) One hundred percent.
   6.  The  assessor  shall  mail  written notice of such findings to the
 property owner and the participating municipality.  Where  the  assessor
 finds  that the loss in improved value is less than fifty percent or, if
 a participating municipality has elected to  provide  assessment  relief
 for  real  property located within such participating municipality for a
 lesser percentage, is less than such lesser  percentage,  or  classifies
 the  loss  within  a  lower  range  than  the property owner believes is
 warranted, the property owner may file a complaint  with  the  board  of
 assessment  review.  Such  board  shall  reconvene  upon 10 days written
 notice to the property owner and assessor to hear the appeal and  deter-
 mine  the  matter, and shall mail written notice of its determination to
 the assessor and property owner. The provisions of article 5 of the real
 property tax law shall govern the review process to the extent practica-
 ble. For the purposes of this act only, the applicant may commence with-

 S. 6783                             8
 
 in 30 days of service of a written  determination,  a  proceeding  under
 title  1  of  article 7 of the real property tax law, or, if applicable,
 under title 1-A of article 7 of the real property tax law. Sections  727
 and 739 of the real property tax law shall not apply.
   7.  Where  property  has  lost  at least fifty percent of its improved
 value or, if a participating municipality has elected to provide assess-
 ment relief for real property that lost a lesser percentage of  improved
 value,  such  lesser  percentage  due  to  flooding,  the assessed value
 attributable to the improvements on the property on the impacted assess-
 ment roll shall be reduced by the appropriate  percentage  specified  in
 subdivision  one of this section, provided that any exemptions which the
 property may be receiving shall be adjusted as necessary to account  for
 such  reduction  in  the  total  assessed value. To the extent the total
 assessed value of the property originally appearing on such roll exceeds
 the amount to which it should be  reduced  pursuant  to  this  act,  the
 excess  shall  be  considered  an  error in essential fact as defined by
 subdivision 3 of section 550 of the real property tax law. If the  error
 appears  on  a  tax  roll, the tax roll shall be corrected in the manner
 provided by section 554 of the real property tax  law  or  a  refund  or
 credit  of  taxes shall be granted in the manner provided by section 556
 or section 556-b of the real property tax law. If the error appears on a
 final assessment roll but not on a tax roll, such final assessment  roll
 shall  be  corrected  in  the manner provided by section 553 of the real
 property tax law. The errors in essential fact found  pursuant  to  this
 act on either the tax roll or final assessment roll, upon application to
 the county director of real property tax services, shall be forwarded by
 the  county  director  of  real property tax services immediately to the
 levying body for  an  immediate  order  setting  forth  the  appropriate
 correction.
   8.  The  rights contained in this act shall not otherwise diminish any
 other legally available right of any property owner  or  party  who  may
 otherwise  lawfully  challenge  the  valuation or assessment of any real
 property or improvements thereon. All remaining rights hereby remain and
 shall be available to the party to whom such rights would  otherwise  be
 available notwithstanding this act.
   §  5. Guidance memorandum. The commissioner of taxation and finance is
 authorized to develop a guidance memorandum for use by assessing  units.
 Such  guidance  memorandum  shall assist with the implementation of this
 act and shall be deemed to be advisory on all assessing units  in  coun-
 ties which implement the provisions of this act. The guidance memorandum
 shall have no force or effect or serve as authority for any other act of
 assessing  units  or of the interpretation or implementation of the laws
 of the state of New York except as they relate to the specific implemen-
 tation of this act.
   § 6. School districts held harmless.  Each  school  district  that  is
 wholly  or  partially  contained within an eligible county shall be held
 harmless by the state for any reduction in state  aid  that  would  have
 been paid as tax savings pursuant to section 1306-a of the real property
 tax law incurred due to the provisions of this act.
   §  7.  Bonds  authorized.  Serial  bonds, and in advance of such, bond
 anticipation notes, are hereby authorized pursuant to  subdivision  33-d
 of  paragraph  a  of  section  11.00 of the local finance law, provided,
 however, that any federal  community  development  block  grant  funding
 received  by  such  participating  municipality,  in relation to loss of
 property tax funding, shall first be used to defease, upon maturity, the
 interest and principal of any such bond or note so outstanding.

 S. 6783                             9
 
   § 8. Paragraph a of section 11.00 of the local finance law is  amended
 by adding a new subdivision 33-d to read as follows:
   33-D.  REAL  PROPERTY TAX REFUNDS AND CREDITS. PAYMENTS OF EXEMPTIONS,
 REFUNDS, OR CREDITS FOR REAL PROPERTY TAX, SEWER AND WATER RENTS,  RATES
 AND  CHARGES  AND  ALL OTHER REAL PROPERTY TAXES TO BE MADE BY A MUNICI-
 PALITY, SCHOOL DISTRICT OR DISTRICT CORPORATION AS A RESULT  OF  PARTIC-
 IPATING  IN  THE  LAKE ONTARIO AND CONNECTED WATERWAYS ASSESSMENT RELIEF
 ACT, TEN YEARS.
   § 9. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be  adjudged  by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its  operation  to the clause, sentence, paragraph, subdivision, section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the legislature that this act would  have  been  enacted  even  if  such
 invalid provisions had not been included herein.
   §  10.  This  act shall take effect immediately and shall be deemed to
 have been in full force and effect on and after May 3, 2017.
 
                                  PART C
 
   Section 1. Subsection (c) of section 612 of the tax law is amended  by
 adding a new paragraph 42 to read as follows:
   (42)  DISTRIBUTIONS  FROM AN ELIGIBLE RETIREMENT PLAN, AS SUCH TERM IS
 DEFINED IN SUBPARAGRAPH (B)  OF  PARAGRAPH  (8)  OF  SUBSECTION  (C)  OF
 SECTION  FOUR HUNDRED TWO OF THE INTERNAL REVENUE CODE, MADE ON OR AFTER
 APRIL FIRST, TWO THOUSAND SEVENTEEN AND BEFORE APRIL SECOND,  TWO  THOU-
 SAND  TWENTY-TWO.  IN ORDER TO BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS
 INCOME, THE TAXPAYER'S  PRIMARY  RESIDENCE  MUST  HAVE  INCURRED  SEVERE
 DAMAGE  DUE TO COASTAL FLOODING, WIDESPREAD EROSION AND WATER DAMAGE AND
 SUCH PRIMARY RESIDENCE WAS LOCATED IN THE AFFECTED DISASTER AREA  PURSU-
 ANT TO EXECUTIVE ORDER ONE HUNDRED SIXTY-FIVE OF TWO THOUSAND SEVENTEEN,
 DECLARING A STATE OF EMERGENCY, DATED MAY THIRD, TWO THOUSAND SEVENTEEN.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2017.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or  part  of  this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgement shall  not  affect,
 impair or invalidate the remainder thereof, but shall be confined in its
 operation  to  the  clause, sentence, paragraph, subdivision, section or
 part thereof directly involved in the controversy in which  such  judge-
 ment shall have been rendered. It is hereby declared to be the intent of
 the  legislative  that  this  act  would  have been enacted even if such
 invalid provisions had not been included herein.
   § 3. This act shall take effect immediately  provided,  however,  that
 the  applicable effective date of Parts A through C of this act shall be
 as specifically set forth in the last section of such Parts.