S T A T E O F N E W Y O R K
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8235
I N S E N A T E
April 20, 2018
___________
Introduced by Sens. FLANAGAN, LAVALLE -- read twice and ordered printed,
and when printed to be committed to the Committee on Finance
AN ACT to amend subpart H of part C of chapter 20 of the laws of 2015,
relating to appropriating money for certain municipal corporations and
school districts, in relation to authorizing funds in the case of
certain tax certiorari challenges or agreed upon settlements; and to
permit certain boards of education to establish a tax certiorari
stabilization reserve fund
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 1 of subpart H of part C of chapter 20 of the laws
of 2015, relating to appropriating money for certain municipal corpo-
rations and school districts, as amended by section 1 of part QQ of
chapter 58 of the laws of 2017, is amended to read as follows:
Section 1. Contingent upon available funding, and not to exceed
[$45,000,000] $69,000,000 moneys from the urban development corporation
shall be available for a local government entity, which for the purposes
of this section shall mean a county, city, town, village, school
district or special district, where (i) on or after June 25, 2015, an
electric generating facility located within such local government entity
has ceased operations, and (ii) the closing of such facility has caused
a reduction in the real property tax collections or payments in lieu of
taxes of at least twenty percent owed by such electric generating facil-
ity; OR WHERE, ON OR AFTER APRIL 1, 2018, A SUCCESSFUL TAX CERTIORARI
CHALLENGE OR AN AGREED UPON SETTLEMENT TO THE ASSESSMENT OF AN ELECTRIC
GENERATING FACILITY BY THE LONG ISLAND POWER AUTHORITY HAS RESULTED IN
EITHER A REDUCTION IN THE REAL PROPERTY TAX COLLECTIONS OR PAYMENTS IN
LIEU OF TAXES OF AT LEAST TWENTY PERCENT, OR IN REGARDS TO A SETTLEMENT
AGREEMENT A REDUCTION IN REAL PROPERTY TAXES OR PAYMENTS IN LIEU OF
TAXES OF AT LEAST TWENTY PERCENT IN THE AGGREGATE OVER THE TERM OF THE
SETTLEMENT AGREEMENT, OWED BY SUCH ELECTRIC GENERATING FACILITY OR HAS
RESULTED IN A REAL PROPERTY TAX LEVY INCREASE OF OVER TWENTY PERCENT OF
A LOCAL GOVERNMENT ENTITY. Such moneys attributable to the cessation of
operations, A SUCCESSFUL TAX CERTIORARI CHALLENGE, OR AN AGREED UPON
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15267-10-8
S. 8235 2
SETTLEMENT, shall be paid annually on a first come, first served basis
by the urban development corporation to such local government entity
within a reasonable time upon confirmation from the state office of real
property tax services or the local industrial development authority
established pursuant to titles eleven and fifteen of article eight of
the public authorities law, or the local industrial development agency
established pursuant to article eighteen-A of the general municipal law
that such cessation, TAX CERTIORARI JUDGMENT, OR AN AGREED UPON SETTLE-
MENT has resulted in a reduction in the real property tax collections or
payments in lieu of taxes, provided, however, that the urban development
corporation shall not provide assistance to such local government entity
for more than seven years IN THE CASE OF THE CLOSING OF AN ELECTRIC
GENERATING FACILITY OR IN THE CASE OF A TAX CERTIORARI JUDGMENT OR
AGREED UPON SETTLEMENT FOR NOT MORE THAN FIFTEEN YEARS, and shall award
payments reflecting the loss of revenues due to the cessation of oper-
ations, TAX CERTIORARI JUDGMENT OR AN AGREED UPON SETTLEMENT as follows:
Award [Year] YEARS Maximum Potential Award
1 no more than eighty percent of loss of revenues
2 no more than seventy percent of loss of revenues
3 no more than sixty percent of loss of revenues
4 no more than fifty percent of loss of revenues
5 no more than forty percent of loss of revenues
6 no more than thirty percent of loss of revenues
7-15 no more than twenty percent of loss of revenues
A local government entity shall be eligible for only one payment of
funds hereunder per year. A local government entity may seek assistance
under the electric generation facility cessation AND TAX CERTIORARI
mitigation fund (I) once a generator has submitted its notice to the
federally designated electric bulk system operator (BSO) serving the
state of New York of its intent to retire the facility or of its intent
to voluntarily remove the facility from service subject to any return-
to-service provisions of any tariff, and that the facility also is inel-
igible to participate in the markets operated by the BSO; OR (II) ONCE A
FINAL JUDGMENT OR SETTLEMENT AGREEMENT IN A TAX CERTIORARI PROCEEDING
HAS BEEN FILED OR EXECUTED. The date of submission of a local govern-
ment entity's application for assistance shall establish the order in
which assistance is paid to program applicants, except that in no event
shall assistance be paid to a local government entity until such time
that an electric generating facility has EITHER (I) retired or become
ineligible to participate in the markets operated by the BSO, OR (II) A
FINAL JUDGMENT OR SETTLEMENT AGREEMENT IN A TAX CERTIORARI PROCEEDING
HAS BEEN FILED OR EXECUTED. For purposes of this section, any local
government entity seeking assistance under the electric generation
facility cessation AND TAX CERTIORARI mitigation fund must submit an
attestation to the department of public service that EITHER (I) a facil-
ity is no longer producing electricity and is no longer participating in
markets operated by the BSO, OR (II) A FINAL JUDGMENT OR SETTLEMENT
AGREEMENT IN A TAX CERTIORARI PROCEEDING HAS BEEN FILED OR EXECUTED.
[After] FOR FACILITIES THAT HAVE CEASED OPERATIONS AFTER receipt of such
attestation, the department of public service shall confirm such infor-
mation with the BSO. In the case that the BSO confirms to the department
of public service that the facility is no longer producing electricity
and participating in markets operated by such BSO, it shall be deemed
that the electric generating facility located within the local govern-
S. 8235 3
ment entity has ceased operation. The department of public service shall
provide such confirmation to the urban development corporation upon
receipt. [The] FOR A FACILITY WITH A TAX CERTIORARI JUDGMENT OR SETTLE-
MENT, THE DEPARTMENT OF PUBLIC SERVICE SHALL SUBMIT SUCH ATTESTATION TO
THE URBAN DEVELOPMENT CORPORATION UPON RECEIPT OF THE determination of
the amount of such annual payment WHICH shall be determined by the pres-
ident of the urban development corporation based on the amount of the
differential between the annual real property taxes and payments in lieu
of taxes imposed upon the facility, exclusive of interest and penalties,
during the last year of operations and EITHER (I) the current real prop-
erty taxes and payments in lieu of taxes imposed upon the facility,
exclusive of interest and penalties AFTER THE CESSATION OF OPERATIONS OR
FINAL JUDGMENT OR SETTLEMENT AGREEMENT IN A TAX CERTIORARI PROCEEDING,
OR (II) THE ANNUAL REDUCTION ON REAL PROPERTY TAXES OR PAYMENTS IN LIEU
OF TAXES DURING THE TERM OF A SETTLEMENT AGREEMENT FROM A TAX CERTIORARI
PROCEEDING. The total amount awarded from this program shall not exceed
[$45,000,000] $69,000,000.
§ 2. Tax certiorari stabilization reserve fund. (a) Definitions. As
used in this section:
(i) "Board of education" or "board" shall mean the board of education
of either: the Port Jefferson union free school district, the North-
port-East Northport union free school district, the North Shore central
school district, the Island Park union free school district, or any
other school district that is impacted by a tax certiorari action
brought by the Long Island Power Authority.
(ii) "Tax certiorari stabilization reserve fund" shall mean the tax
certiorari stabilization reserve fund established pursuant to this
section.
(iii) "School district" or "district" shall mean either: the Port
Jefferson union free school district, the Northport-East Northport union
free school district, the North Shore central school district, the
Island Park union free school district, or any other school district
that is impacted by a tax certiorari action brought by the Long Island
Power Authority.
(b) The board of education is hereby authorized to establish a tax
certiorari stabilization reserve fund to lessen or prevent increases in
the school district's real property tax levy resulting from decreases in
revenue due to a tax certiorari settlement or judgment provided, howev-
er, that no such fund shall be established unless approved by a majority
vote of the voters present and voting on a separate ballot proposition
therefor at either a special district meeting which the board of educa-
tion may call for such purpose or at the annual district meeting and
election, to be noticed and conducted in either case in accordance with
article 41 of the education law. Such separate proposition shall set
forth the maximum allowable balance to be deposited and held in the tax
certiorari stabilization reserve fund. Moneys shall be paid into and
withdrawn from the fund and the fund shall be administered as follows:
(i) The board of education is hereby authorized to receive payments
into its tax certiorari stabilization reserve fund from any annual funds
it is eligible to receive from the electric generating facility cessa-
tion fund. Such received allocations from the electric generating facil-
ity cessation fund shall not count against the district's maximum allow-
able fund balance for its tax certiorari stabilization reserve fund.
(ii) Moneys may be withdrawn from the tax certiorari stabilization
reserve fund for any fiscal year to be expended for any lawful purpose
to lessen or prevent increases in the district's tax levy. Withdrawals
S. 8235 4
from the fund shall be disclosed in a manner consistent with the
required disclosures of similar reserve funds held by the district,
including disclosures of similar reserve funds held by the district,
including disclosures required by the property tax report card prepared
by the district pursuant to the provisions of subdivision 7 of section
1716 of the education law; and deposits and withdrawals made in each
fiscal year shall be subject to the district's annual budget approval
process.
§ 3. This act shall take effect immediately, provided, however, that
the amendments to section 1 of subpart H of part C of chapter 20 of the
laws of 2015 made by section one of this act shall not affect the repeal
of such subpart and shall be deemed repealed therewith.
