S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4088
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 1, 2019
                                ___________
 
 Introduced  by  M.  of  A.  KOLB, ASHBY, BARCLAY, BLANKENBUSH, BRABENEC,
   BYRNE,  CROUCH,  DiPIETRO,  FINCH,  FITZPATRICK,  FRIEND,   GARBARINO,
   GIGLIO,  GOODELL,  HAWLEY,  JOHNS, LALOR, LAWRENCE, MALLIOTAKIS, McDO-
   NOUGH, B. MILLER, M. L. MILLER, MONTESANO, MORINELLO, NORRIS, PALMESA-
   NO, PALUMBO, RA, RAIA, STEC, WALSH -- read once and  referred  to  the
   Committee on Ways and Means
 
 AN  ACT to amend chapter 58 of the laws of 2005, relating to authorizing
   reimbursements for  expenditures  made  by  or  on  behalf  of  social
   services  districts  for  medical assistance for needy persons and the
   administration thereof, in relation to providing for a ten-year  state
   takeover of the local share of medicaid outside of New York City (Part
   A); providing for a twenty-year state takeover of fifty percent of the
   local share of Medicaid in New York City (Part B); to amend the social
   services  law, in relation to creating the Commission to Reform Public
   Assistance Benefits (Part C); to amend the tax  law,  in  relation  to
   expanding  the  state  earned income tax credit from thirty percent to
   forty-five percent of the federal credit amount (Part D); to amend the
   tax law, in relation to offering the option for individuals to receive
   the state earned income tax credit in monthly installments  (Part  E);
   to amend the tax law, in relation to expanding the child and dependent
   care tax credit; and to repeal certain provisions of such law relating
   thereto  (Part  F);  to  amend  the labor law, in relation to allowing
   those receiving unemployment insurance to work part-time  while  still
   receiving  a partial unemployment benefit (Part G); to amend the state
   finance law, the education law, and  the  general  municipal  law,  in
   relation to the state assuming the growth in property taxes for school
   districts  and  local  governments that remain under the real property
   tax cap (Part H); to amend the general municipal law, in  relation  to
   creating a property tax redesign team; and providing for the repeal of
   such  provisions  upon  expiration  thereof (Part I); and to amend the
   general municipal law and the municipal home rule law, in relation  to
   establishing  limitations upon real property tax levies in cities with
   a population of one million or more (Part J)
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06159-01-9

 A. 4088                             2
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Legislative  findings  and intent. New York State is at a
 very critical moment in its history. Many  recent  articles  have  cited
 information  provided by the United States Census Bureau that shows over
 one million people have left the New York area since 2010, and this  can
 be  attributed  to  the high cost of living forced on New York taxpayers
 through high taxes and a lack of  job  opportunities.  Our  high  taxes,
 particularly  our  high  property  taxes,  have  contributed to New York
 consistently being ranked near the bottom when compared to other  states
 for  business tax climate and total combined tax burden. By doing little
 to reform the structural reasons behind the high cost of living  in  New
 York,  the  state government has failed to make life better for families
 and businesses in every region.
   To compound this problem, New York spends  a  high  amount  on  public
 assistance  programs  that are meant to help citizens escape poverty and
 become self-sufficient, but include income thresholds that  create  what
 are known as "benefit cliffs".  These benefit cliffs occur when an indi-
 vidual  or  family  receiving  public  benefits  hits a specified dollar
 amount in income and immediately loses eligibility to receive a  certain
 public  assistance  benefit.  When this happens, the state is creating a
 situation where New Yorkers would actually see a reduction in real take-
 home pay because the value of the public assistance  benefit  they  will
 lose  is worth more than the increased income they would receive through
 working. This means that low-income New Yorkers,  through  no  fault  of
 their  own,  will  find  it difficult to accept a job, more hours, or an
 increase in pay as the financial well-being of their family  is  threat-
 ened  by  working  more.  Work should be incentivized, and no New Yorker
 should ever be faced with a situation where working hard and  earning  a
 larger salary can actually lead to a decrease in real take-home pay.
   These  problems require state government officials to make hard choic-
 es, and make long-term structural changes in order to see real  systemic
 changes to our economy in the long run. Therefore, the legislature finds
 it  necessary  to implement a ten-year state takeover of the local share
 of Medicaid outside of New York City, create the  Commission  to  Reform
 Public  Assistance  Benefits to implement a new payment method to eradi-
 cate the benefit cliffs, expand the state earned income tax credit  from
 thirty percent to forty-five percent of the federal credit amount, offer
 the option for individuals to receive the state earned income tax credit
 in monthly installments, expand the child and dependent care tax credit,
 allow  those  receiving  unemployment  insurance to work part-time while
 still receiving a partial unemployment benefit,  assume  the  growth  in
 property  taxes  for  school districts and local governments that remain
 under the real property tax cap to take the burden  off  of  homeowners,
 create  a property tax redesign team that will produce recurring savings
 and subject New York City to the real property tax cap.    These  struc-
 tural  changes  will  help  make  New  York more competitive, and a more
 attractive place to build a business and raise a family. They will  also
 provide  low-income  New Yorkers with additional opportunities to better
 their situation and rise out of poverty.
   § 2. This act enacts into law major components of legislation  provid-
 ing for a ten-year state takeover of the local share of Medicaid outside
 of  New  York  City, providing for a twenty-year state takeover of fifty
 percent of the local share of Medicaid in New York  City,  creating  the
 Commission  to  Reform  Public  Assistance Benefits, expanding the state

 A. 4088                             3
 
 earned income tax credit from thirty percent to  forty-five  percent  of
 the  federal  credit  amount,  offering  the  option  for individuals to
 receive the state earned income  tax  credit  in  monthly  installments,
 expanding  the  child  and  dependent  care  tax  credit, allowing those
 receiving unemployment insurance to work part-time while still receiving
 a partial unemployment benefit, assuming the growth  in  property  taxes
 for  school  districts  and local governments that remain under the real
 property tax cap to take the burden off of homeowners, creating a  prop-
 erty  tax  redesign  team  required  to  produce  recurring  savings and
 subjecting New York City to the real property tax cap. Each component is
 wholly contained within a Part identified as  Parts  A  through  J.  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 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  four  of this act sets forth the general effective date of this
 act.
 
                                  PART A
 
   Section 1. Subdivision (c) of section 1 of part C of chapter 58 of the
 laws of 2005 relating to  authorizing  reimbursements  for  expenditures
 made by or on behalf of social services districts for medical assistance
 for  needy  persons and the administration thereof is amended and twelve
 new subdivisions (c-2), (c-3), (c-4), (c-5), (c-6), (c-7), (c-8), (c-9),
 (c-10), (c-11),(c-12) and (c-13) are added to read as follows:
   (c) Commencing with the  calendar  year  beginning  January  1,  2006,
 calendar  year  social  services district medical assistance expenditure
 amounts for each social services district shall be calculated by  multi-
 plying  the  results of the calculations performed pursuant to paragraph
 (b) of this section by a non-compounded trend factor, as follows:
   (i) 2006 (January 1, 2006 through December 31, 2006):  3.5%;
   (ii) 2007 (January 1, 2007 through December 31, 2007):   6.75%  (3.25%
 plus the prior year's 3.5%);
   (iii)  2008  (January  1,  2008 through December 31, 2008):  9.75% (3%
 plus the prior year's 6.75%);
   (iv) 2009 (January 1,  2009  through  December  31,  2009),  and  each
 succeeding  calendar  year  THROUGH  2020:  prior  year's  trend  factor
 percentage plus 3%.
   (C-2) NOTWITHSTANDING THE PROVISIONS OF SECTION 368-A  OF  THE  SOCIAL
 SERVICES  LAW, OR ANY OTHER PROVISION OF LAW, COMMENCING WITH THE PERIOD
 JANUARY 1, 2020 THROUGH DECEMBER 31, 2020, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT SHALL BE REDUCED BY 10% FROM THE  2019  EXPENDITURES.  NO  LESS
 THAN 100% OF THE ANNUAL SAVINGS FROM THIS MEDICAL ASSISTANCE EXPENDITURE
 REDUCTION,  COMPARED  TO  THE PRIOR YEAR MEDICAL ASSISTANCE EXPENDITURE,
 SHALL BE USED FOR PROPERTY TAX LEVY REDUCTIONS, OR PROPERTY TAX REBATES,
 EFFECTIVE IN THE LOCAL GOVERNMENT'S 2021 FISCAL YEAR. THIS SECTION SHALL
 NOT APPLY TO A CITY WITH A POPULATION OF ONE MILLION OR MORE.
   (C-3) NOTWITHSTANDING THE PROVISIONS OF SECTION 368-A  OF  THE  SOCIAL
 SERVICES  LAW, OR ANY OTHER PROVISION OF LAW, COMMENCING WITH THE PERIOD
 JANUARY 1, 2021 THROUGH DECEMBER 31, 2021, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT SHALL BE REDUCED BY 20% FROM THE  2019  EXPENDITURES.  NO  LESS

 A. 4088                             4
 
 THAN 100% OF THE ANNUAL SAVINGS FROM THIS MEDICAL ASSISTANCE EXPENDITURE
 REDUCTION,  COMPARED  TO  THE PRIOR YEAR MEDICAL ASSISTANCE EXPENDITURE,
 SHALL BE USED FOR PROPERTY TAX LEVY REDUCTIONS, OR PROPERTY TAX REBATES,
 EFFECTIVE IN THE LOCAL GOVERNMENT'S 2022 FISCAL YEAR. THIS SECTION SHALL
 NOT APPLY TO A CITY WITH A POPULATION OF ONE MILLION OR MORE.
   (C-4)  NOTWITHSTANDING  THE  PROVISIONS OF SECTION 368-A OF THE SOCIAL
 SERVICES LAW, OR ANY OTHER PROVISION OF LAW, COMMENCING WITH THE  PERIOD
 JANUARY 1, 2022 THROUGH DECEMBER 31, 2022, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT  SHALL  BE  REDUCED  BY 30% FROM THE 2019 EXPENDITURES. NO LESS
 THAN 100% OF THE ANNUAL SAVINGS FROM THIS MEDICAL ASSISTANCE EXPENDITURE
 REDUCTION, COMPARED TO THE PRIOR YEAR  MEDICAL  ASSISTANCE  EXPENDITURE,
 SHALL BE USED FOR PROPERTY TAX LEVY REDUCTIONS, OR PROPERTY TAX REBATES,
 EFFECTIVE IN THE LOCAL GOVERNMENT'S 2023 FISCAL YEAR. THIS SECTION SHALL
 NOT APPLY TO A CITY WITH A POPULATION OF ONE MILLION OR MORE.
   (C-5)  NOTWITHSTANDING  THE  PROVISIONS OF SECTION 368-A OF THE SOCIAL
 SERVICES LAW, OR ANY OTHER PROVISION OF LAW, COMMENCING WITH THE  PERIOD
 JANUARY 1, 2023 THROUGH DECEMBER 31, 2023, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT  SHALL  BE  REDUCED  BY 40% FROM THE 2019 EXPENDITURES. NO LESS
 THAN 100% OF THE ANNUAL SAVINGS FROM THIS MEDICAL ASSISTANCE EXPENDITURE
 REDUCTION, COMPARED TO THE PRIOR YEAR  MEDICAL  ASSISTANCE  EXPENDITURE,
 SHALL BE USED FOR PROPERTY TAX LEVY REDUCTIONS, OR PROPERTY TAX REBATES,
 EFFECTIVE IN THE LOCAL GOVERNMENT'S 2024 FISCAL YEAR. THIS SECTION SHALL
 NOT APPLY TO A CITY WITH A POPULATION OF ONE MILLION OR MORE.
   (C-6)  NOTWITHSTANDING  THE  PROVISIONS OF SECTION 368-A OF THE SOCIAL
 SERVICES LAW, OR ANY OTHER PROVISION OF LAW, COMMENCING WITH THE  PERIOD
 JANUARY 1, 2024 THROUGH DECEMBER 31, 2024, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT  SHALL  BE REDUCED BY 50% FROM THE 2019 EXPENDITURES; AND SHALL
 REMAIN ELIMINATED EACH YEAR THEREAFTER. NO LESS THAN 100% OF THE  ANNUAL
 SAVINGS  FROM THIS MEDICAL ASSISTANCE EXPENDITURE REDUCTION, COMPARED TO
 THE PRIOR YEAR MEDICAL ASSISTANCE EXPENDITURE, SHALL BE USED FOR PROPER-
 TY TAX LEVY REDUCTIONS, OR PROPERTY TAX REBATES, EFFECTIVE IN THE  LOCAL
 GOVERNMENT'S  2025  FISCAL  YEAR. THIS SECTION SHALL NOT APPLY TO A CITY
 WITH A POPULATION OF ONE MILLION OR MORE.
   (C-7) NOTWITHSTANDING THE PROVISIONS OF SECTION 368-A  OF  THE  SOCIAL
 SERVICES  LAW, OR ANY OTHER PROVISION OF LAW, COMMENCING WITH THE PERIOD
 JANUARY 1, 2025 THROUGH DECEMBER 31, 2025, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT SHALL BE REDUCED BY 60% FROM THE 2019 EXPENDITURES;  AND  SHALL
 REMAIN  ELIMINATED EACH YEAR THEREAFTER. NO LESS THAN 100% OF THE ANNUAL
 SAVINGS FROM THIS MEDICAL ASSISTANCE EXPENDITURE REDUCTION, COMPARED  TO
 THE PRIOR YEAR MEDICAL ASSISTANCE EXPENDITURE, SHALL BE USED FOR PROPER-
 TY  TAX LEVY REDUCTIONS, OR PROPERTY TAX REBATES, EFFECTIVE IN THE LOCAL
 GOVERNMENT'S 2026 FISCAL YEAR. THIS SECTION SHALL NOT APPLY  TO  A  CITY
 WITH A POPULATION OF ONE MILLION OR MORE.
   (C-8)  NOTWITHSTANDING  THE  PROVISIONS OF SECTION 368-A OF THE SOCIAL
 SERVICES LAW, OR ANY OTHER PROVISION OF LAW, COMMENCING WITH THE  PERIOD
 JANUARY 1, 2026 THROUGH DECEMBER 31, 2026, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT  SHALL  BE REDUCED BY 70% FROM THE 2019 EXPENDITURES; AND SHALL
 REMAIN ELIMINATED EACH YEAR THEREAFTER. NO LESS THAN 100% OF THE  ANNUAL
 SAVINGS  FROM THIS MEDICAL ASSISTANCE EXPENDITURE REDUCTION, COMPARED TO
 THE PRIOR YEAR MEDICAL ASSISTANCE EXPENDITURE, SHALL BE USED FOR PROPER-
 TY TAX LEVY REDUCTIONS, OR PROPERTY TAX REBATES, EFFECTIVE IN THE  LOCAL

 A. 4088                             5
 
 GOVERNMENT'S  2027  FISCAL  YEAR. THIS SECTION SHALL NOT APPLY TO A CITY
 WITH A POPULATION OF ONE MILLION OR MORE.
   (C-9)  NOTWITHSTANDING  THE  PROVISIONS OF SECTION 368-A OF THE SOCIAL
 SERVICES LAW, OR ANY OTHER PROVISION OF LAW, COMMENCING WITH THE  PERIOD
 JANUARY 1, 2027 THROUGH DECEMBER 31, 2027, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT  SHALL  BE REDUCED BY 80% FROM THE 2019 EXPENDITURES; AND SHALL
 REMAIN ELIMINATED EACH YEAR THEREAFTER. NO LESS THAN 100% OF THE  ANNUAL
 SAVINGS  FROM THIS MEDICAL ASSISTANCE EXPENDITURE REDUCTION, COMPARED TO
 THE PRIOR YEAR MEDICAL ASSISTANCE EXPENDITURE, SHALL BE USED FOR PROPER-
 TY TAX LEVY REDUCTIONS, OR PROPERTY TAX REBATES, EFFECTIVE IN THE  LOCAL
 GOVERNMENT'S  2028  FISCAL  YEAR. THIS SECTION SHALL NOT APPLY TO A CITY
 WITH A POPULATION OF ONE MILLION OR MORE.
   (C-10) NOTWITHSTANDING THE PROVISIONS OF SECTION 368-A OF  THE  SOCIAL
 SERVICES  LAW, OR ANY OTHER PROVISION OF LAW, COMMENCING WITH THE PERIOD
 JANUARY 1, 2028 THROUGH DECEMBER 31, 2028, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT SHALL BE REDUCED BY 90% FROM THE 2019 EXPENDITURES;  AND  SHALL
 REMAIN  ELIMINATED EACH YEAR THEREAFTER. NO LESS THAN 100% OF THE ANNUAL
 SAVINGS FROM THIS MEDICAL ASSISTANCE EXPENDITURE REDUCTION, COMPARED  TO
 THE PRIOR YEAR MEDICAL ASSISTANCE EXPENDITURE, SHALL BE USED FOR PROPER-
 TY  TAX LEVY REDUCTIONS, OR PROPERTY TAX REBATES, EFFECTIVE IN THE LOCAL
 GOVERNMENT'S 2029 FISCAL YEAR. THIS SECTION SHALL NOT APPLY  TO  A  CITY
 WITH A POPULATION OF ONE MILLION OR MORE.
   (C-11)  NOTWITHSTANDING  THE PROVISIONS OF SECTION 368-A OF THE SOCIAL
 SERVICES LAW, OR ANY OTHER PROVISION OF LAW, COMMENCING WITH THE  PERIOD
 JANUARY 1, 2029 THROUGH DECEMBER 31, 2029, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT  SHALL BE REDUCED BY 100% FROM THE 2019 EXPENDITURES; AND SHALL
 REMAIN ELIMINATED EACH YEAR THEREAFTER. NO LESS THAN 100% OF THE  ANNUAL
 SAVINGS  FROM THIS MEDICAL ASSISTANCE EXPENDITURE REDUCTION, COMPARED TO
 THE PRIOR YEAR MEDICAL ASSISTANCE EXPENDITURE, SHALL BE USED FOR PROPER-
 TY TAX LEVY REDUCTIONS, OR PROPERTY TAX REBATES, EFFECTIVE IN THE  LOCAL
 GOVERNMENT'S  2030  FISCAL  YEAR. THIS SECTION SHALL NOT APPLY TO A CITY
 WITH A POPULATION OF ONE MILLION OR MORE.
   (C-12) NOTWITHSTANDING THE PROVISIONS OF SECTION SEVEN  OF  THIS  ACT,
 ANY  COUNTY  THAT  OPTED  INTO THE LOCAL SALES TAX INTERCEPT METHODOLOGY
 SHALL RECEIVE A PROPORTIONATE REDUCTION IN THE SALES  TAX  INTERCEPT  AS
 DESCRIBED  IN  SUBDIVISIONS  (C-2),  (C-3),  (C-4), (C-5), (C-6), (C-7),
 (C-8), (C-9), (C-10) AND (C-11) OF THIS SECTION AND USE THESE RECAPTURED
 FUNDS FOR PROPERTY TAX REDUCTIONS IN THE  SAME  MANNER  AS  OTHER  LOCAL
 JURISDICTIONS AS DESCRIBED.
   (C-13)  THE  MINIMUM  AMOUNT  OF  ANNUAL  PROPERTY TAX LEVY REDUCTIONS
 RESULTING FROM SAVINGS ACHIEVED AS DEFINED IN SUBDIVISIONS (C-2), (C-3),
 (C-4), (C-5), (C-6), (C-7), (C-8), (C-9),  (C-10)  AND  (C-11)  OF  THIS
 SECTION, SHALL BE DETERMINED BY THE STATE COMPTROLLER AND TRANSMITTED TO
 EACH LOCAL GOVERNMENT ONE HUNDRED EIGHTY DAYS IN ADVANCE OF THE START OF
 THE FISCAL YEAR FOR WHICH THE PROPERTY TAX REDUCTION IS TO BE EFFECTIVE.
   § 2. This act shall take effect immediately.
 
                                  PART B
 
   Section  1.  Notwithstanding the provisions of part C of chapter 58 of
 the laws of 2005 and section 368-a of the social services  law,  or  any
 other  provision  of  law, in cities with a population of one million or
 more:

 A. 4088                             6
 
   (a) commencing with the period January 1, 2020  through  December  31,
 2020, calendar year social services district medical assistance expendi-
 ture  amounts for each social services district shall be reduced by 2.5%
 from the 2019 expenditures. No less than 100% of the annual savings from
 this  medical  assistance  expenditure  reduction, compared to the prior
 year medical assistance expenditure, shall be used for property tax levy
 reductions, or property tax rebates, effective in the local government's
 2021 fiscal year;
   (b) commencing with the period January 1, 2021  through  December  31,
 2021, calendar year social services district medical assistance expendi-
 ture  amounts  for  each social services district shall be reduced by 5%
 from the 2019 expenditures. No less than 100% of the annual savings from
 this medical assistance expenditure reduction,  compared  to  the  prior
 year medical assistance expenditure, shall be used for property tax levy
 reductions, or property tax rebates, effective in the local government's
 2022 fiscal year;
   (c)  commencing  with  the period January 1, 2022 through December 31,
 2022, calendar year social services district medical assistance expendi-
 ture amounts for each social services district shall be reduced by  7.5%
 from the 2019 expenditures. No less than 100% of the annual savings from
 this  medical  assistance  expenditure  reduction, compared to the prior
 year medical assistance expenditure, shall be used for property tax levy
 reductions, or property tax rebates, effective in the local government's
 2023 fiscal year;
   (d) commencing with the period January 1, 2023  through  December  31,
 2023, calendar year social services district medical assistance expendi-
 ture  amounts  for each social services district shall be reduced by 10%
 from the 2019 expenditures. No less than 100% of the annual savings from
 this medical assistance expenditure reduction,  compared  to  the  prior
 year medical assistance expenditure, shall be used for property tax levy
 reductions, or property tax rebates, effective in the local government's
 2024 fiscal year;
   (e)  commencing  with  the period January 1, 2024 through December 31,
 2024, calendar year social services district medical assistance expendi-
 ture amounts for each social services district shall be reduced by 12.5%
 from the 2019 expenditures; and shall remain eliminated each year there-
 after. No less than 100% of the annual savings from this medical assist-
 ance expenditure reduction, compared to the prior year  medical  assist-
 ance  expenditure,  shall  be  used for property tax levy reductions, or
 property tax rebates, effective in the local  government's  2025  fiscal
 year;
   (f)  commencing  with  the period January 1, 2025 through December 31,
 2025, calendar year social services district medical assistance expendi-
 ture amounts for each social services district shall be reduced  by  15%
 from the 2019 expenditures; and shall remain eliminated each year there-
 after. No less than 100% of the annual savings from this medical assist-
 ance  expenditure  reduction, compared to the prior year medical assist-
 ance expenditure, shall be used for property  tax  levy  reductions,  or
 property  tax  rebates,  effective in the local government's 2026 fiscal
 year;
   (g) commencing with the period January 1, 2026  through  December  31,
 2026, calendar year social services district medical assistance expendi-
 ture amounts for each social services district shall be reduced by 17.5%
 from the 2019 expenditures; and shall remain eliminated each year there-
 after. No less than 100% of the annual savings from this medical assist-
 ance  expenditure  reduction, compared to the prior year medical assist-

 A. 4088                             7
 
 ance expenditure, shall be used for property  tax  levy  reductions,  or
 property  tax  rebates,  effective in the local government's 2027 fiscal
 year;
   (h)  commencing  with  the period January 1, 2027 through December 31,
 2027, calendar year social services district medical assistance expendi-
 ture amounts for each social services district shall be reduced  by  20%
 from the 2019 expenditures; and shall remain eliminated each year there-
 after. No less than 100% of the annual savings from this medical assist-
 ance  expenditure  reduction, compared to the prior year medical assist-
 ance expenditure, shall be used for property  tax  levy  reductions,  or
 property  tax  rebates,  effective in the local government's 2028 fiscal
 year;
   (i) commencing with the period January 1, 2028  through  December  31,
 2028, calendar year social services district medical assistance expendi-
 ture amounts for each social services district shall be reduced by 22.5%
 from the 2019 expenditures; and shall remain eliminated each year there-
 after. No less than 100% of the annual savings from this medical assist-
 ance  expenditure  reduction, compared to the prior year medical assist-
 ance expenditure, shall be used for property  tax  levy  reductions,  or
 property  tax  rebates,  effective in the local government's 2029 fiscal
 year;
   (j) commencing with the period January 1, 2029  through  December  31,
 2029, calendar year social services district medical assistance expendi-
 ture  amounts  for each social services district shall be reduced by 25%
 from the 2019 expenditures; and shall remain eliminated each year there-
 after. No less than 100% of the annual savings from this medical assist-
 ance expenditure reduction, compared to the prior year  medical  assist-
 ance  expenditure,  shall  be  used for property tax levy reductions, or
 property tax rebates, effective in the local  government's  2030  fiscal
 year;
   (k)  commencing  with  the period January 1, 2030 through December 31,
 2030, calendar year social services district medical assistance expendi-
 ture amounts for each social services district shall be reduced by 27.5%
 from the 2019 expenditures; and shall remain eliminated each year there-
 after. No less than 100% of the annual savings from this medical assist-
 ance expenditure reduction, compared to the prior year  medical  assist-
 ance  expenditure,  shall  be  used for property tax levy reductions, or
 property tax rebates, effective in the local  government's  2031  fiscal
 year;
   (l)  commencing  with  the period January 1, 2031 through December 31,
 2031, calendar year social services district medical assistance expendi-
 ture amounts for each social services district shall be reduced  by  30%
 from the 2019 expenditures; and shall remain eliminated each year there-
 after. No less than 100% of the annual savings from this medical assist-
 ance  expenditure  reduction, compared to the prior year medical assist-
 ance expenditure, shall be used for property  tax  levy  reductions,  or
 property  tax  rebates,  effective in the local government's 2032 fiscal
 year;
   (m) commencing with the period January 1, 2032  through  December  31,
 2032, calendar year social services district medical assistance expendi-
 ture amounts for each social services district shall be reduced by 32.5%
 from the 2019 expenditures; and shall remain eliminated each year there-
 after. No less than 100% of the annual savings from this medical assist-
 ance  expenditure  reduction, compared to the prior year medical assist-
 ance expenditure, shall be used for property  tax  levy  reductions,  or

 A. 4088                             8
 
 property  tax  rebates,  effective in the local government's 2033 fiscal
 year;
   (n)  commencing  with  the period January 1, 2033 through December 31,
 2033, calendar year social services district medical assistance expendi-
 ture amounts for each social services district shall be reduced  by  35%
 from the 2019 expenditures; and shall remain eliminated each year there-
 after. No less than 100% of the annual savings from this medical assist-
 ance  expenditure  reduction, compared to the prior year medical assist-
 ance expenditure, shall be used for property  tax  levy  reductions,  or
 property  tax  rebates,  effective in the local government's 2034 fiscal
 year;
   (o) commencing with the period January 1, 2034  through  December  31,
 2034, calendar year social services district medical assistance expendi-
 ture amounts for each social services district shall be reduced by 37.5%
 from the 2019 expenditures; and shall remain eliminated each year there-
 after. No less than 100% of the annual savings from this medical assist-
 ance  expenditure  reduction, compared to the prior year medical assist-
 ance expenditure, shall be used for property  tax  levy  reductions,  or
 property  tax  rebates,  effective in the local government's 2035 fiscal
 year;
   (p) commencing with the period January 1, 2035  through  December  31,
 2035, calendar year social services district medical assistance expendi-
 ture  amounts  for each social services district shall be reduced by 40%
 from the 2019 expenditures; and shall remain eliminated each year there-
 after. No less than 100% of the annual savings from this medical assist-
 ance expenditure reduction, compared to the prior year  medical  assist-
 ance  expenditure,  shall  be  used for property tax levy reductions, or
 property tax rebates, effective in the local  government's  2036  fiscal
 year;
   (q)  commencing  with  the period January 1, 2036 through December 31,
 2036, calendar year social services district medical assistance expendi-
 ture amounts for each social services district shall be reduced by 42.5%
 from the 2019 expenditures; and shall remain eliminated each year there-
 after. No less than 100% of the annual savings from this medical assist-
 ance expenditure reduction, compared to the prior year  medical  assist-
 ance  expenditure,  shall  be  used for property tax levy reductions, or
 property tax rebates, effective in the local  government's  2037  fiscal
 year;
   (r)  commencing  with  the period January 1, 2037 through December 31,
 2037, calendar year social services district medical assistance expendi-
 ture amounts for each social services district shall be reduced  by  45%
 from the 2019 expenditures; and shall remain eliminated each year there-
 after. No less than 100% of the annual savings from this medical assist-
 ance  expenditure  reduction, compared to the prior year medical assist-
 ance expenditure, shall be used for property  tax  levy  reductions,  or
 property  tax  rebates,  effective in the local government's 2038 fiscal
 year;
   (s) commencing with the period January 1, 2038  through  December  31,
 2038, calendar year social services district medical assistance expendi-
 ture amounts for each social services district shall be reduced by 47.5%
 from the 2019 expenditures; and shall remain eliminated each year there-
 after. No less than 100% of the annual savings from this medical assist-
 ance  expenditure  reduction, compared to the prior year medical assist-
 ance expenditure, shall be used for property  tax  levy  reductions,  or
 property  tax  rebates,  effective in the local government's 2039 fiscal
 year;

 A. 4088                             9
 
   (t) commencing with the period January 1, 2039  through  December  31,
 2039, calendar year social services district medical assistance expendi-
 ture  amounts  for each social services district shall be reduced by 50%
 from the 2019 expenditures; and shall remain eliminated each year there-
 after. No less than 100% of the annual savings from this medical assist-
 ance  expenditure  reduction, compared to the prior year medical assist-
 ance expenditure, shall be used for property  tax  levy  reductions,  or
 property  tax  rebates,  effective in the local government's 2040 fiscal
 year.
   § 2. Notwithstanding the provisions of section  seven  of  part  C  of
 chapter  58  of  the  laws of 2005, any county that opted into the local
 sales tax intercept methodology shall receive a proportionate  reduction
 in  the  sales tax intercept as described in section one of this act and
 use those recaptured funds for  property  tax  reductions  in  the  same
 manner as other local jurisdictions as described.
   § 3. The minimum amount of annual property tax levy reductions result-
 ing  from  savings achieved as defined in section one of this act, shall
 be determined by the state comptroller and  transmitted  to  each  local
 government one hundred eighty days in advance of the start of the fiscal
 year for which the property tax reduction is to be effective.
   § 4. This act shall take effect immediately.
 
                                  PART C
 
   Section  1. The social services law is amended by adding a new article
 11-A to read as follows:
                               ARTICLE 11-A
              COMMISSION TO REFORM PUBLIC ASSISTANCE BENEFITS
 SECTION 500. DEFINITIONS.
         501. COMMISSION TO REFORM PUBLIC ASSISTANCE BENEFITS.
         502. POWERS AND DUTIES OF THE COMMISSION.
   § 500. DEFINITIONS. AS USED IN THIS ARTICLE:
   1. "COMMISSION" SHALL MEAN THE COMMISSION TO REFORM PUBLIC  ASSISTANCE
 BENEFITS ESTABLISHED PURSUANT TO THIS ARTICLE.
   2. "PUBLIC ASSISTANCE BENEFITS" SHALL INCLUDE FAMILY ASSISTANCE, SAFE-
 TY  NET  ASSISTANCE,  VETERAN  ASSISTANCE,  MEDICAL ASSISTANCE FOR NEEDY
 PERSONS, INSTITUTIONAL CARE FOR ADULTS, CHILD  CARE  GRANTED  AT  PUBLIC
 EXPENSE,  AND  ANY OTHER FORM OF GOVERNMENTAL ASSISTANCE FOR INDIVIDUALS
 AND/OR FAMILIES AS DETERMINED BY THE COMMISSION.
   3. "REAL TAKE-HOME PAY" SHALL MEAN THE TOTAL AMOUNT OF INCOME  FOR  AN
 INDIVIDUAL  AND/OR  FAMILY  WHEN  INCLUDING  PUBLIC ASSISTANCE BENEFITS,
 SALARY EARNED THROUGH EMPLOYMENT AND ANY OTHER FORM OF COMPENSATION.
   § 501. COMMISSION TO REFORM PUBLIC ASSISTANCE BENEFITS. 1.   THERE  IS
 HEREBY  CREATED  THE  COMMISSION  TO  REFORM PUBLIC ASSISTANCE BENEFITS,
 WHICH SHALL CONSIST OF THE FOLLOWING  SEVENTEEN  MEMBERS  WHO  SHALL  BE
 APPOINTED WITHIN THIRTY DAYS AFTER THE EFFECTIVE DATE OF THIS SECTION:
   A.  THE COMMISSIONER OF THE OFFICE OF TEMPORARY AND DISABILITY ASSIST-
 ANCE OR HIS OR HER DESIGNEE AND SHALL SERVE AS THE  CHAIRPERSON  OF  THE
 COMMISSION;
   B.  THE  COMMISSIONER OF THE OFFICE OF CHILDREN AND FAMILY SERVICES OR
 HIS OR HER DESIGNEE;
   C. THE COMMISSIONER OF LABOR OR HIS OR HER DESIGNEE;
   D. THE COMMISSIONER OF HEALTH OR HIS OR HER DESIGNEE;
   E. THE DIRECTOR OF THE DIVISION OF BUDGET OR HIS OR HER DESIGNEE;
   F. THREE MEMBERS APPOINTED BY THE TEMPORARY PRESIDENT OF THE SENATE;
   G. THREE MEMBERS APPOINTED BY THE SPEAKER OF THE ASSEMBLY;

 A. 4088                            10

   H. THREE MEMBERS APPOINTED BY THE MINORITY LEADER OF THE SENATE;
   I. THREE MEMBERS APPOINTED BY THE MINORITY LEADER OF THE ASSEMBLY.
   2.  NO MEMBER OF THE COMMISSION SHALL BE DISQUALIFIED FROM HOLDING ANY
 PUBLIC OFFICE OR EMPLOYMENT, NOR SHALL HE OR SHE FORFEIT ANY SUCH OFFICE
 OR EMPLOYMENT BY VIRTUE OF HIS OR HER APPOINTMENT PURSUANT TO THIS ARTI-
 CLE. MEMBERS OF THE COMMISSION SHALL RECEIVE NO COMPENSATION  FOR  THEIR
 SERVICE,  BUT  SHALL  BE  ALLOWED  THEIR  ACTUAL  AND NECESSARY EXPENSES
 INCURRED IN THE PERFORMANCE OF THEIR FUNCTIONS PURSUANT TO THIS ARTICLE.
 A MEMBER OF THE COMMISSION MAY BE REMOVED BY  THE  APPOINTING  AUTHORITY
 ONLY FOR GOOD CAUSE, AFTER NOTICE AND OPPORTUNITY TO BE HEARD. VACANCIES
 SHALL BE FILLED IN THE SAME MANNER AS ORIGINAL APPOINTMENTS.
   §  502.  POWERS  AND DUTIES OF THE COMMISSION. 1. THE COMMISSION SHALL
 CONDUCT A STUDY TO EXAMINE THE CURRENT PAYMENT METHOD FOR PUBLIC ASSIST-
 ANCE BENEFITS AND IDENTIFY ANY AND ALL INCOME LEVELS THAT EXIST WHERE AN
 INDIVIDUAL OR FAMILY WOULD BECOME INELIGIBLE FOR ANY  PUBLIC  ASSISTANCE
 BENEFIT.
   A.  THE  COMMISSION  MAY  REQUIRE  THE  PRODUCTION OF ANY DOCUMENTS OR
 INFORMATION THE COMMISSION DEEMS REASONABLY NECESSARY  TO  CONDUCT  THIS
 STUDY.
   B.  THE  COMMISSION SHALL, WITHIN NINETY DAYS OF THE EFFECTIVE DATE OF
 THIS ARTICLE, ISSUE A REPORT PROVIDING DETAILS ON THE  RESULTS  OF  SUCH
 STUDY  TO THE GOVERNOR AND THE LEGISLATURE, AND THE REPORT SHALL ALSO BE
 MADE WIDELY AVAILABLE TO THE PUBLIC VIA, AMONG OTHER THINGS, PUBLICATION
 ON A WEBSITE MAINTAINED  BY  THE  OFFICE  OF  TEMPORARY  AND  DISABILITY
 ASSISTANCE.
   2.  BEGINNING  WITHIN TEN DAYS AFTER THE ISSUANCE OF THE REPORT ISSUED
 PURSUANT TO SUBDIVISION ONE OF THIS SECTION, THE COMMISSION  SHALL  HOLD
 AT  LEAST  ONE  PUBLIC  HEARING  IN  EACH OF THE FOLLOWING REGIONS: LONG
 ISLAND; NEW YORK CITY; HUDSON VALLEY; CAPITAL DISTRICT;  NORTH  COUNTRY;
 CENTRAL NEW YORK; FINGER LAKES; WESTERN NEW YORK; AND SOUTHERN TIER.
   A. DURING THE PUBLIC HEARINGS, THE COMMISSION SHALL HEAR THE TESTIMONY
 OF  VOLUNTARY  WITNESSES,  MAY COMPEL THE TESTIMONY OF WITNESSES AND MAY
 REQUIRE THE PRODUCTION OF ANY DOCUMENTS OR  INFORMATION  THE  COMMISSION
 DEEMS REASONABLY NECESSARY TO CARRY OUT ITS RESPONSIBILITIES.
   B.  AFTER REVIEW, STUDY, AND RECEIPT OF PUBLIC COMMENT, THE COMMISSION
 SHALL ISSUE A REPORT WITHIN ONE HUNDRED EIGHTY  DAYS  OF  THE  EFFECTIVE
 DATE  OF  THIS  ARTICLE  THAT  INCLUDES  A NEW PAYMENT METHOD FOR PUBLIC
 ASSISTANCE BENEFITS THAT ENSURES  AN  INDIVIDUAL'S  OR  FAMILY'S  PUBLIC
 ASSISTANCE  BENEFITS  ARE NOT ELIMINATED AT SPECIFIED INCOME LEVELS, BUT
 RATHER DECREASED TO ENSURE AN INDIVIDUAL'S OR  FAMILY'S  REAL  TAKE-HOME
 PAY INCREASES AS A RESULT OF ANY INCREASE IN INCOME DUE TO EMPLOYMENT.
   C.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW, SUCH PAYMENT METHOD AS
 DETERMINED BY THE COMMISSION SHALL HAVE THE FORCE OF  LAW  UNLESS  ACTED
 UPON BY THE LEGISLATURE.
   § 2. This act shall take effect immediately.
 
                                  PART D
 
   Section  1.  Paragraph  1  of subsection (d) of section 606 of the tax
 law, as amended by section 1 of part Q of chapter  63  of  the  laws  of
 2000, is amended to read as follows:
   (1)  General.  A taxpayer shall be allowed a credit as provided herein
 equal to (i) the applicable  percentage  of  the  earned  income  credit
 allowed  under  section  thirty-two of the internal revenue code for the
 same taxable year, (ii) reduced by the credit permitted under subsection
 (b) of this section.

 A. 4088                            11
 
   The applicable percentage shall be (i) seven and one-half percent  for
 taxable  years  beginning  in  nineteen  hundred  ninety-four,  (ii) ten
 percent for taxable years beginning  in  nineteen  hundred  ninety-five,
 (iii)  twenty percent for taxable years beginning after nineteen hundred
 ninety-five  and  before  two  thousand,  (iv)  twenty-two  and one-half
 percent for taxable years beginning in  two  thousand,  (v)  twenty-five
 percent  for  taxable  years beginning in two thousand one, (vi) twenty-
 seven and one-half percent for taxable years beginning in  two  thousand
 two, [and] (vii) thirty percent for taxable years beginning in two thou-
 sand three, AND (VIII) FORTY-FIVE PERCENT FOR TAXABLE YEARS BEGINNING IN
 TWO  THOUSAND  NINETEEN  and  thereafter. Provided, however, that if the
 reversion event, as defined in this paragraph,  occurs,  the  applicable
 percentage  shall be twenty percent for taxable years ending on or after
 the date on which the reversion  event  occurred.  The  reversion  event
 shall  be  deemed  to have occurred on the date on which federal action,
 including but not limited to, administrative,  statutory  or  regulatory
 changes, materially reduces or eliminates New York state's allocation of
 the  federal  temporary  assistance  for  needy families block grant, or
 materially reduces the ability of the state to spend  federal  temporary
 assistance  for  needy  families block grant funds for the earned income
 credit or to apply state general fund  spending  on  the  earned  income
 credit  toward  the  temporary assistance for needy families block grant
 maintenance of effort requirement, and the commissioner of the office of
 temporary and disability assistance shall certify the date of such event
 to the commissioner of taxation and finance, the director of  the  divi-
 sion of the budget, the speaker of the assembly and the temporary presi-
 dent of the senate.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2019.
 
                                  PART E
 
   Section  1.  Section  686  of  the  tax law is amended by adding a new
 subsection (j) to read as follows:
   (J) EARNED INCOME TAX  CREDIT.--A  TAXPAYER  ELIGIBLE  TO  RECEIVE  AN
 EARNED  INCOME  TAX  CREDIT  PURSUANT  TO  SUBSECTION (D) OF SECTION SIX
 HUNDRED SIX OF THIS ARTICLE OR AN  ENHANCED  EARNED  INCOME  TAX  CREDIT
 PURSUANT  TO SUBSECTION (D-1) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE
 SHALL BE PRESCRIBED THE OPTION TO RECEIVE SUCH CREDIT IN  THE  FOLLOWING
 MANNER:  (I)  FOR AMOUNTS EQUAL TO OR LESS THAN TWO HUNDRED DOLLARS, THE
 PAYMENT OR REFUND SHALL BE MADE IN A  LUMP  SUM,  (II)  FOR  AMOUNTS  IN
 EXCESS  OF  TWO  HUNDRED DOLLARS AND LESS THAN TWO THOUSAND FOUR HUNDRED
 DOLLARS, THE PAYMENT OR REFUND SHALL BE TWO HUNDRED DOLLARS A MONTH  FOR
 THE  NUMBER  OF  MONTHS EQUAL TO THE TOTAL AMOUNT THEREOF DIVIDED BY TWO
 HUNDRED AND ROUNDED DOWN TO THE NEAREST WHOLE NUMBER, AND THE  REMAINING
 BALANCE OF SUCH PAYMENT OR REFUND SHALL BE MADE IN THE FIRST MONTH THER-
 EAFTER, AND (III) FOR AMOUNTS EQUAL TO OR GREATER THAN TWO THOUSAND FOUR
 HUNDRED  DOLLARS,  THE  PAYMENT OR REFUND SHALL BE PAID IN EQUAL MONTHLY
 PAYMENTS EQUAL TO THE TOTAL AMOUNT THEREOF DIVIDED BY TWELVE.
   § 2. This act shall take effect on the one hundred twentieth day after
 it shall have become a law. Effective immediately, the  commissioner  of
 taxation  and  finance  is  authorized  to  make any addition, amendment
 and/or repeal of any rule or regulation necessary for the implementation
 of this act on its effective date on or before such date.
 
                                  PART F

 A. 4088                            12
 
   Section 1. Paragraph 1 of subsection (c) of section  606  of  the  tax
 law,  as  amended  by  section  1 of part M of chapter 63 of the laws of
 2000, is amended to read as follows:
   (1)  A  taxpayer shall be allowed a credit as provided herein equal to
 the applicable percentage of the credit allowable under section  twenty-
 one  of  the  internal  revenue  code for the same taxable year (without
 regard to whether the taxpayer in fact claimed  the  credit  under  such
 section  twenty-one  for  such  taxable year). The applicable percentage
 shall be the sum of (i) [twenty] SIXTY-TWO percent and (ii) a multiplier
 multiplied by a  fraction.  For  taxable  years  beginning  in  nineteen
 hundred  ninety-six  and nineteen hundred ninety-seven, the numerator of
 such fraction shall be the lesser of (i) four thousand dollars  or  (ii)
 fourteen  thousand  dollars  less the New York adjusted gross income for
 the taxable year, provided, however, the numerator  shall  not  be  less
 than  zero.  For  the taxable year beginning in nineteen hundred ninety-
 eight, the numerator of such fraction shall be the lesser of  (i)  thir-
 teen  thousand dollars or (ii) thirty thousand dollars less the New York
 adjusted gross income for  the  taxable  year,  provided,  however,  the
 numerator  shall  not  be less than zero. For taxable years beginning in
 nineteen hundred ninety-nine, the numerator of such  fraction  shall  be
 the  lesser  of  (i)  fifteen  thousand  dollars  or (ii) fifty thousand
 dollars less the New York adjusted gross income for  the  taxable  year,
 provided,  however, the numerator shall not be less than zero. For taxa-
 ble years beginning after nineteen hundred ninety-nine, the numerator of
 such fraction shall be the lesser of (i)  fifteen  thousand  dollars  or
 (ii) sixty-five thousand dollars less the New York adjusted gross income
 for the taxable year, provided, however, the numerator shall not be less
 than  zero.  The  denominator  of  such  fraction shall be four thousand
 dollars for taxable years beginning in nineteen hundred  ninety-six  and
 nineteen hundred ninety-seven, thirteen thousand dollars for the taxable
 year  beginning  in  nineteen hundred ninety-eight, and fifteen thousand
 dollars for taxable years beginning after nineteen hundred ninety-eight.
 The multiplier shall be ten percent for taxable years beginning in nine-
 teen hundred ninety-six, forty percent for taxable  years  beginning  in
 nineteen  hundred  ninety-seven,  [and] eighty percent for taxable years
 beginning [after nineteen  hundred  ninety-seven]  IN  NINETEEN  HUNDRED
 NINETY-EIGHT,  AND  ONE  HUNDRED  THIRTY-EIGHT PERCENT FOR TAXABLE YEARS
 BEGINNING AFTER TWO THOUSAND NINETEEN. Provided,  however,  for  taxable
 years  beginning  after nineteen hundred ninety-nine, for a person whose
 New York adjusted gross income is less than forty thousand dollars, such
 applicable percentage shall be equal to (i) one  hundred  percent,  plus
 (ii)  ten  percent multiplied by a fraction whose numerator shall be the
 lesser of (i) fifteen thousand dollars or (ii)  forty  thousand  dollars
 less  the  New York adjusted gross income for the taxable year, provided
 such numerator shall not be less than zero, and whose denominator  shall
 be  fifteen  thousand  dollars.    PROVIDED,  HOWEVER, FOR TAXABLE YEARS
 BEGINNING AFTER TWO THOUSAND NINETEEN,  FOR  A  PERSON  WHOSE  NEW  YORK
 ADJUSTED GROSS INCOME IS LESS THAN FORTY THOUSAND DOLLARS, SUCH APPLICA-
 BLE  PERCENTAGE  SHALL  BE  EQUAL  TO (I) TWO HUNDRED PERCENT, PLUS (II)
 TWENTY PERCENT MULTIPLIED BY A FRACTION WHOSE  NUMERATOR  SHALL  BE  THE
 LESSER  OF  (I)  FIFTEEN THOUSAND DOLLARS OR (II) FORTY THOUSAND DOLLARS
 LESS THE NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE  YEAR,  PROVIDED
 SUCH  NUMERATOR SHALL NOT BE LESS THAN ZERO, AND WHOSE DENOMINATOR SHALL
 BE FIFTEEN THOUSAND DOLLARS. Provided, further, that  if  the  reversion
 event,  as  defined in this paragraph, occurs, the applicable percentage
 shall, for taxable years ending on or after the date on which the rever-

 A. 4088                            13
 
 sion event occurred, be determined using the  rules  specified  in  this
 paragraph  applicable  to  taxable  years  beginning in nineteen hundred
 ninety-nine. The reversion event shall be deemed to have occurred on the
 date  on which federal action, including but not limited to, administra-
 tive, statutory or regulatory changes, materially reduces or  eliminates
 New  York  state's  allocation  of  the federal temporary assistance for
 needy families block grant, or materially reduces  the  ability  of  the
 state  to  spend  federal  temporary assistance for needy families block
 grant funds for the credit for  certain  household  and  dependent  care
 services necessary for gainful employment or to apply state general fund
 spending on the credit for certain household and dependent care services
 necessary  for  gainful  employment  toward the temporary assistance for
 needy families block grant maintenance of effort  requirement,  and  the
 commissioner  of the office of temporary and disability assistance shall
 certify the date of such event to the commissioner, the director of  the
 division  of  the  budget, the speaker of the assembly and the temporary
 president of the senate.
   § 2. Paragraph 1-a of subsection (c) of section 606 of the tax law  is
 REPEALED.
   § 3. This act shall take effect immediately.
 
                                  PART G
 
   Section  1.  Subdivision 1 of section 590 of the labor law, as amended
 by chapter 645 of the laws of 1951, is amended to read as follows:
   1. Entitlement to benefits. A claimant shall be entitled to accumulate
 effective days for the purpose of benefit rights only if he has complied
 with the provisions of this article regarding the filing of  his  claim,
 including  the  filing  of a valid original claim, registered as totally
 unemployed OR PARTIALLY EMPLOYED PURSUANT TO SECTION FIVE HUNDRED  NINE-
 TY-A OF THIS TITLE, reported his subsequent employment and unemployment,
 and  reported  for  work or otherwise given notice of the continuance of
 his unemployment.
   § 2. The labor law is amended by adding a new section 590-a to read as
 follows:
   § 590-A. REDUCTIONS IN UNEMPLOYMENT BENEFITS DUE TO PART-TIME WORK. 1.
 ENTITLEMENT TO BENEFITS. NOTWITHSTANDING ANY OTHER PROVISION OF  LAW  TO
 THE  CONTRARY, ANY CLAIMANT WHO ACCEPTS PART-TIME WORK SHALL BE ELIGIBLE
 TO COLLECT PARTIAL UNEMPLOYMENT PURSUANT TO THIS SECTION  PROVIDED  SUCH
 CLAIMANT MEETS THE CRITERIA OUTLINED IN THIS SECTION.
   2.  REPORTING PART-TIME EMPLOYMENT. A CLAIMANT COLLECTING UNEMPLOYMENT
 WHO IS PAID FOR PART-TIME EMPLOYMENT WHILE COLLECTING UNEMPLOYMENT SHALL
 BE REQUIRED TO REPORT DURING EACH COMPENSABLE PERIOD THE AMOUNT OF MONEY
 EARNED FROM SUCH PART-TIME WORK.
   3. BENEFIT RATE. A CLAIMANT'S UNEMPLOYMENT BENEFIT SHALL BE REDUCED BY
 FIFTY PERCENT OF THE PART-TIME INCOME DURING A COMPENSABLE PERIOD, IN  A
 MANNER DETERMINED BY THE COMMISSIONER.
   4.  PENALTIES  FOR  FALSE  OR  INACCURATE REPORTING. THE PROVISIONS OF
 SECTION FIVE HUNDRED NINETY-FOUR OF THIS TITLE SHALL  CONTROL  SHOULD  A
 CLAIMANT  INACCURATELY  REPORT OR FAIL TO REPORT THE AMOUNT OF PART-TIME
 WAGES EARNED DURING ANY COMPENSABLE PERIOD.
   § 3. This act shall take effect on the sixtieth  day  after  it  shall
 have  become a law; provided, however that the commissioner of labor may
 promulgate any rules or regulations necessary for the implementation  of
 this act prior to such effective date.

 A. 4088                            14
 
                                  PART H
 
   Section  1.  The  state finance law is amended by adding a new section
 54-n to read as follows:
   § 54-N. AID TO LOCAL GOVERNMENTS FOR REAL  PROPERTY  TAX.  1.    DEFI-
 NITIONS. AS USED IN THIS SECTION:
   (A)  THE  TERM  "FREEZE-COMPLIANT  BUDGET"  MEANS A BUDGET OF A TAXING
 JURISDICTION THAT HAS ZERO PERCENT GROWTH OF THE REAL PROPERTY TAX LEVY.
   (B) THE TERMS "INDEPENDENT SPECIAL  DISTRICT"  AND  "DEPENDENT  SCHOOL
 DISTRICT"  HAVE THE SAME MEANINGS AS SET FORTH IN SECTION THREE-D OF THE
 GENERAL MUNICIPAL LAW.
   (C) THE  TERM  "TAXING  JURISDICTION"  MEANS  A  COUNTY,  CITY,  TOWN,
 VILLAGE, SCHOOL DISTRICT OR AN INDEPENDENT SPECIAL DISTRICT; EXCEPT THAT
 SUCH  TERM  SHALL NOT INCLUDE A CITY WITH A POPULATION OF ONE MILLION OR
 MORE, NOR SHALL IT INCLUDE A COUNTY WHOLLY LOCATED WITHIN SUCH A CITY.
   (D) THE TERM "TAX LEVY LIMIT" MEANS THE ALLOWABLE LEVY  GROWTH  FACTOR
 FOR  A TAXING JURISDICTION, AS DETERMINED PURSUANT TO SECTION THREE-C OF
 THE GENERAL MUNICIPAL LAW OR SECTION TWO THOUSAND TWENTY-THREE-A OF  THE
 EDUCATION LAW.
   (E)  THE TERM "COMING FISCAL YEAR" MEANS THE FISCAL YEAR OF THE TAXING
 JURISDICTION FOR WHICH A TAX LEVY LIMIT SHALL BE DETERMINED,  AS  DETER-
 MINED  PURSUANT  TO  SECTION  THREE-C  OF  THE  GENERAL MUNICIPAL LAW OR
 SECTION TWO THOUSAND TWENTY-THREE-A OF THE EDUCATION LAW.
   2. THE STATE SHALL PROVIDE AID TO A TAXING JURISDICTION THAT ENACTS  A
 FREEZE-COMPLIANT  BUDGET FOR THE COMING FISCAL YEAR EQUAL TO TWO PERCENT
 OF A TAXING JURISDICTION'S  PRIOR  FISCAL  YEAR  LEVY.  SUBJECT  TO  THE
 PROVISIONS  OF  SUBDIVISION  THREE  OF  THIS  SECTION, SUCH AID SHALL BE
 DETERMINED AS FOLLOWS:
   (A) IF A TAXING JURISDICTION OTHER THAN A  DEPENDENT  SCHOOL  DISTRICT
 HAS  NOT  PREVIOUSLY RECEIVED AID PURSUANT TO THIS ACT AND HAS A FREEZE-
 COMPLIANT BUDGET FOR ITS COMING FISCAL YEAR, AID EQUAL TO TWO PERCENT OF
 THE TAXING JURISDICTION'S PRIOR FISCAL YEAR LEVY WILL BE PROVIDED.
   (B) IF A TAXING JURISDICTION OTHER THAN A  DEPENDENT  SCHOOL  DISTRICT
 HAS  PREVIOUSLY RECEIVED AID PURSUANT TO THIS CHAPTER, THE TAXING JURIS-
 DICTION SHALL CONTINUE TO RECEIVE THE AID AMOUNT DESIGNATED IN PARAGRAPH
 (A) OF THIS SUBDIVISION FOR EACH FISCAL  YEAR  THE  TAXING  JURISDICTION
 ENACTED A FREEZE-COMPLIANT BUDGET.
   3.  THE  FOLLOWING SHALL APPLY TO THE CALCULATION OF THE STATE AID FOR
 COUNTIES PURSUANT TO SUBDIVISION TWO OF THIS SECTION FOR  COUNTIES  THAT
 QUALIFY  FOR  THE AID PURSUANT TO SUBDIVISION TWO OF THIS SECTION, STATE
 AID SHALL BE CALCULATED AFTER TAKING INTO  ACCOUNT  THE  REDUCED  COUNTY
 PROPERTY  TAX LEVY PROVISIONS FOUND IN PARAGRAPH (IV) OF SUBDIVISION (C)
 OF SECTION ONE OF PART C OF CHAPTER FIFTY-EIGHT OF THE LAWS OF TWO THOU-
 SAND FIVE, HAS BEEN SUBTRACTED FROM THE PRIOR YEAR LEVY.
   § 2. The education law is amended by adding a new  section  2023-c  to
 read as follows:
   §  2023-C. CERTIFICATION OF COMPLIANCE WITH STATE AID TO LOCAL GOVERN-
 MENTS FOR REAL PROPERTY. A  SCHOOL  DISTRICT  THAT  IS  SUBJECT  TO  THE
 PROVISIONS  OF  SECTION TWO THOUSAND TWENTY-THREE-A OF THIS ARTICLE MUST
 COMPLY WITH THE REQUIREMENTS OF SUBDIVISION TWO OF THIS SECTION IN ORDER
 TO BE ELIGIBLE FOR THE AID AUTHORIZED BY  SECTION  FIFTY-FOUR-N  OF  THE
 STATE FINANCE LAW.
   1.  DEFINITION.  AS  USED  IN THIS SECTION: "ELIGIBLE SCHOOL DISTRICT"
 MEANS A SCHOOL DISTRICT THAT IS SUBJECT TO SECTION TWO THOUSAND  TWENTY-
 THREE-A  OF  THIS  ARTICLE, BUT SHALL NOT MEAN A SCHOOL DISTRICT THAT IS
 SUBJECT TO ARTICLE FIFTY-TWO OF THIS CHAPTER.

 A. 4088                            15
 
   2. CERTIFICATION OF COMPLIANCE WITH  TAX  LEVY  LIMIT.  (A)  UPON  THE
 ADOPTION  OF THE BUDGET OF AN ELIGIBLE SCHOOL DISTRICT, THE CHIEF EXECU-
 TIVE OFFICER OF SUCH SCHOOL DISTRICT SHALL CERTIFY TO  THE  STATE  COMP-
 TROLLER,  THE  COMMISSIONER OF TAXATION AND FINANCE AND THE COMMISSIONER
 THAT  THE  BUDGET  SO  ADOPTED  DOES  NOT EXCEED THE ZERO PERCENT GROWTH
 PRESCRIBED BY SECTION  FIFTY-FOUR-N  OF  THE  STATE  FINANCE  LAW.  SUCH
 CERTIFICATION SHALL BE MADE IN A FORM AND MANNER PRESCRIBED BY THE STATE
 COMPTROLLER  IN  CONSULTATION  WITH  THE  COMMISSIONER  OF  TAXATION AND
 FINANCE AND THE COMMISSIONER.
   (B) IN ORDER FOR SUCH CERTIFICATION TO GIVE  RISE  TO  THE  AID  UNDER
 SECTION  FIFTY-FOUR-N OF THE STATE FINANCE LAW, SUCH CERTIFICATION SHALL
 BE MADE NO LATER THAN THE TWENTY-FIRST DAY OF THE FISCAL YEAR  TO  WHICH
 IT APPLIES.
   (C)  IF  SUCH A CERTIFICATION HAS BEEN MADE AND THE ACTUAL TAX LEVY OF
 THE SCHOOL DISTRICT EXCEEDS ZERO PERCENT GROWTH, THE EXCESS AMOUNT SHALL
 BE PLACED IN RESERVE AND USED IN THE MANNER  PRESCRIBED  BY  SUBDIVISION
 FIVE OF SECTION TWO THOUSAND TWENTY-THREE-A OF THIS ARTICLE.
   (D) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, EVERY SCHOOL
 DISTRICT THAT IS SUBJECT TO THE PROVISIONS OF SECTION TWO THOUSAND TWEN-
 TY-THREE-A OF THIS ARTICLE SHALL REPORT BOTH ITS PROPOSED BUDGET AND ITS
 ADOPTED BUDGET TO THE STATE COMPTROLLER AND THE COMMISSIONER AT THE TIME
 AND  IN THE MANNER AS THEY MAY PRESCRIBE, WHETHER OR NOT SUCH BUDGET HAS
 BEEN OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDIVISION.
   (E) THE DIRECTOR OF THE BUDGET SHALL REVIEW THE DOCUMENTS REFERRED  TO
 IN PARAGRAPH A OF THIS SUBDIVISION TO DETERMINE WHETHER THE REQUIREMENTS
 OF  SECTION  FIFTY-FOUR-N  OF  THE  STATE FINANCE LAW HAVE BEEN MET WITH
 RESPECT TO AN ELIGIBLE SCHOOL DISTRICT AND SHALL DETERMINE THE TOTAL AID
 PAYMENT AMOUNT FOR THAT FISCAL YEAR.
   § 3. The general municipal law is amended by adding a new section  3-e
 to read as follows:
   § 3-E. CERTIFICATION OF COMPLIANCE WITH STATE AID TO LOCAL GOVERNMENTS
 FOR  REAL  PROPERTY.  1.  A  LOCAL  GOVERNMENT  THAT  IS  SUBJECT TO THE
 PROVISIONS OF SECTION THREE-C OF  THIS  ARTICLE  MUST  COMPLY  WITH  THE
 REQUIREMENTS  OF  SUBDIVISION  TWO  OF SECTION FIFTY-FOUR-N OF THE STATE
 FINANCE LAW IN ORDER TO  BE  ELIGIBLE  FOR  AID  AUTHORIZED  BY  SECTION
 FIFTY-FOUR-N OF THE STATE FINANCE LAW.
   2.  CERTIFICATION  OF  COMPLIANCE  WITH  TAX  LEVY LIMIT. (A) UPON THE
 ADOPTION OF THE BUDGET OF A LOCAL GOVERNMENT UNIT, THE  CHIEF  EXECUTIVE
 OFFICER OR BUDGET OFFICER OF SUCH LOCAL GOVERNMENT UNIT SHALL CERTIFY TO
 THE  STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE THAT
 THE BUDGET SO ADOPTED DOES NOT EXCEED THE ZERO PERCENT GROWTH PRESCRIBED
 BY SECTION FIFTY-FOUR-N OF THE STATE  FINANCE  LAW.  SUCH  CERTIFICATION
 SHALL  BE  MADE IN A FORM AND MANNER PRESCRIBED BY THE STATE COMPTROLLER
 IN CONSULTATION WITH THE COMMISSIONER  OF  TAXATION  AND  FINANCE.  SUCH
 CERTIFICATION SHALL BE MADE IN A FORM AND MANNER PRESCRIBED BY THE STATE
 COMPTROLLER  IN  CONSULTATION  WITH  THE  COMMISSIONER  OF  TAXATION AND
 FINANCE. FOR THE PURPOSES OF THIS SECTION, A LOCAL GOVERNMENT UNIT MEANS
 A MUNICIPAL CORPORATION OR  AN  INDEPENDENT  SPECIAL  DISTRICT  THAT  IS
 SUBJECT TO THE PROVISIONS OF SECTION THREE-C OF THIS ARTICLE.
   (B)  IN  ORDER  FOR  SUCH  CERTIFICATION TO GIVE RISE TO THE AID UNDER
 SECTION FIFTY-FOUR-N OF THE STATE FINANCE LAW, SUCH CERTIFICATION  SHALL
 BE  MADE  NO LATER THAN THE TWENTY-FIRST DAY OF THE FISCAL YEAR TO WHICH
 IT APPLIES.
   (C) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, IF SUCH  A  CERTIF-
 ICATION  HAS  BEEN  MADE AND THE ACTUAL TAX LEVY OF THE LOCAL GOVERNMENT
 UNIT EXCEEDS THE APPLICABLE ZERO PERCENT GROWTH, THE EXCESS AMOUNT SHALL

 A. 4088                            16
 
 BE PLACED IN RESERVE AND USED IN THE MANNER  PRESCRIBED  BY  SUBDIVISION
 SIX OF SECTION THREE-C OF THIS ARTICLE.
   (D)  NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, EVERY LOCAL
 GOVERNMENT UNIT SHALL REPORT BOTH ITS PROPOSED BUDGET  AND  ITS  ADOPTED
 BUDGET  TO  THE  OFFICE  OF THE STATE COMPTROLLER AT THE TIME AND IN THE
 MANNER AS HE OR SHE MAY PRESCRIBE, WHETHER OR NOT SUCH BUDGET  HAS  BEEN
 OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDIVISION.
   § 4. This act shall take effect immediately.
 
                                  PART I
 
   Section  1. The general municipal law is amended by adding a new arti-
 cle 12-J to read as follows:
                               ARTICLE 12-J
                      REAL PROPERTY TAX REDESIGN TEAM
 SECTION 239-AAA. CREATION OF THE REAL PROPERTY TAX REDESIGN TEAM.
   § 239-AAA. CREATION OF THE REAL PROPERTY TAX REDESIGN TEAM. 1.   THERE
 IS  HEREBY  ESTABLISHED THE REAL PROPERTY TAX REDESIGN TEAM, WHICH SHALL
 CONSIST OF TWENTY MEMBERS APPOINTED BY THE GOVERNOR.  AS  USED  IN  THIS
 ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   A. "STATE OFFICER OR EMPLOYEE" SHALL HAVE THE SAME MEANING AS GIVEN IN
 SECTION SEVENTY-THREE OF THE PUBLIC OFFICERS LAW;
   B.  "LOCAL  GOVERNMENT"  SHALL  MEAN  COUNTY,  CITY,  TOWN, VILLAGE OR
 SPECIAL DISTRICT;
   C. "SCHOOL DISTRICT" SHALL MEAN A COMMON, UNION FREE, CENTRAL, CITY OR
 CENTRAL HIGH SCHOOL DISTRICT;
   D. "MANDATE" SHALL MEAN (I) ANY LEGAL REQUIREMENT THAT A LOCAL GOVERN-
 MENT OR SCHOOL DISTRICT PROVIDE OR UNDERTAKE  ANY  PROGRAM,  PROJECT  OR
 ACTIVITY,  OR  INCREASE SPENDING FOR AN EXISTING PROGRAM, PROJECT, REGU-
 LATION OR ACTIVITY ON BEHALF OF  NEW  YORK  STATE;  OR  (II)  ANY  LEGAL
 REQUIREMENT THAT A LOCAL GOVERNMENT OR SCHOOL DISTRICT GRANT A NEW PROP-
 ERTY  TAX EXEMPTION OR BROADEN THE ELIGIBILITY, OR INCREASE THE VALUE OF
 AN EXISTING PROPERTY TAX EXEMPTION; OR (III) ANY LEGAL REQUIREMENT  THAT
 OTHERWISE WOULD LIKELY HAVE THE EFFECT OF RAISING PROPERTY TAXES.
   2.  THE MEMBERS OF THE TEAM SHALL INCLUDE: STATE OFFICERS OR EMPLOYEES
 WITH RELEVANT EXPERTISE; TWO MEMBERS OF THE NEW YORK STATE ASSEMBLY, ONE
 RECOMMENDED BY THE SPEAKER OF THE ASSEMBLY AND ONE  RECOMMENDED  BY  THE
 MINORITY  LEADER  OF  THE  ASSEMBLY;  TWO  MEMBERS OF THE NEW YORK STATE
 SENATE, ONE RECOMMENDED BY THE TEMPORARY PRESIDENT OF THE SENATE AND ONE
 RECOMMENDED BY THE MINORITY LEADER OF THE SENATE; AND STAKEHOLDERS  WITH
 EXPERTISE IN THE AREAS OF:
   A. LOCAL GOVERNMENTS;
   B. SCHOOL DISTRICTS;
   C. BUSINESSES;
   D. PROPERTY TAX ASSESSMENT;
   E. LOCAL GOVERNMENT BUDGETING;
   F. ECONOMIC DEVELOPMENT; AND
   G. OTHER RELEVANT AREAS.
   3.  VACANCIES  SHALL  BE  FILLED  BY THE GOVERNOR. MEMBERS OF THE TEAM
 SHALL SERVE AT THE PLEASURE OF THE GOVERNOR.
   4. THE GOVERNOR SHALL DESIGNATE A CHAIR OR CO-CHAIRS  FROM  AMONG  THE
 MEMBERS OF THE TEAM.
   5. THE DIRECTOR OF THE BUDGET SHALL SERVE AS AN EX-OFFICIO, NON-VOTING
 MEMBER OF THE TEAM.
   6.  THE  DUTIES AND OBLIGATIONS OF THE REAL PROPERTY TAX REDESIGN TEAM
 SHALL CONSIST OF MAKING  COSTS  SAVINGS  RECOMMENDATIONS  REGARDING  THE

 A. 4088                            17
 
 STRUCTURE  OF  THE  NEW  YORK STATE PROPERTY TAX SYSTEM AND THE ADMINIS-
 TRATION OF MANDATED PROGRAMS. THE REAL PROPERTY TAX REDESIGN TEAM SHALL:
   A.  THROUGH  THE  APPROVAL OF A MAJORITY OF ITS TOTAL MEMBERS, DEVELOP
 RECOMMENDATIONS THAT RESULT IN ANNUAL RECURRING SAVINGS OF AT LEAST FIVE
 HUNDRED MILLION DOLLARS;
   B. SOLICIT AND CONSIDER INPUT  FROM  A  BROAD  AND  DIVERSE  RANGE  OF
 GROUPS,  ORGANIZATIONS AND INDIVIDUALS WITH INTEREST OR EXPERTISE IN THE
 REDESIGN OR IMPLEMENTATION OF REAL PROPERTY TAXES IN NEW YORK TO  ASSIST
 IN THE DEVELOPMENT OF COST SAVINGS RECOMMENDATIONS; AND
   C.  CONVENE WITHIN SIXTY DAYS AFTER THE EFFECTIVE DATE OF THIS ARTICLE
 AND CONTINUE TO CONVENE TWICE EVERY MONTH THEREAFTER FOR A PERIOD NOT TO
 EXCEED ONE YEAR.
   7. THE TEAM SHALL SUBMIT A FINAL REPORT ONE YEAR AFTER THE FIRST MEET-
 ING OF THE TEAM TO THE SENATE, ASSEMBLY AND GOVERNOR  FOR  CONSIDERATION
 IN  THE  FOLLOWING  FISCAL YEAR'S STATE BUDGET. THE REPORT SHALL CONSIST
 OF:
   A. SPECIFIC COST SAVINGS WITH A RECOMMENDED PROCEDURE FOR  IMPLEMENTA-
 TION;
   B.  ANY  NECESSARY ACTIONS TO BE TAKEN BY THE STATE LEGISLATURE, LOCAL
 GOVERNMENTS OR SCHOOL DISTRICTS FOR EACH RECOMMENDATION;
   C. RECURRING ANNUAL SAVINGS OF EACH RECOMMENDATION; AND
   D. THE TOTAL RECURRING ANNUAL SAVINGS FOR ALL RECOMMENDATIONS.
   § 2. This act shall  take  effect  immediately  and  shall  be  deemed
 repealed five years after it shall have become a law.
 
                                  PART J
 
   Section  1.  The  general  municipal  law  is  amended by adding a new
 section 3-f to read as follows:
   § 3-F. LIMITATION UPON REAL PROPERTY TAX LEVIES  BY  CITIES  HAVING  A
 POPULATION OF ONE MILLION OR MORE.  1. UNLESS OTHERWISE PROVIDED BY LAW,
 THE  AMOUNT OF REAL PROPERTY TAXES THAT MAY BE LEVIED BY OR ON BEHALF OF
 ANY CITY HAVING A POPULATION OF ONE MILLION OR MORE SHALL NOT EXCEED THE
 TAX LEVY LIMITATION ESTABLISHED PURSUANT TO THIS SECTION.
   2. WHEN USED IN THIS SECTION:
   (A) "ALLOWABLE LEVY GROWTH FACTOR" SHALL BE THE LESSER OF: (I) ONE AND
 TWO ONE-HUNDREDTHS; OR (II) THE SUM OF ONE PLUS  THE  INFLATION  FACTOR;
 PROVIDED,  HOWEVER, THAT IN NO CASE SHALL THE LEVY GROWTH FACTOR BE LESS
 THAN ONE.
   (B) "APPROVED CAPITAL EXPENDITURES" MEANS THE EXPENDITURES  ASSOCIATED
 WITH CAPITAL PROJECTS THAT HAVE BEEN APPROVED BY THE QUALIFIED VOTERS OF
 THE LOCAL GOVERNMENT.
   (C) "AVAILABLE CARRYOVER" MEANS THE SUM OF THE AMOUNT BY WHICH THE TAX
 LEVY  FOR  THE  PRIOR  FISCAL YEAR WAS BELOW THE TAX LEVY LIMIT FOR SUCH
 FISCAL YEAR, IF ANY, BUT NO MORE THAN ONE AND ONE-HALF  PERCENT  OF  THE
 TAX LEVY LIMIT FOR SUCH FISCAL YEAR.
   (D) "CAPITAL TAX LEVY" MEANS THE TAX LEVY NECESSARY TO SUPPORT CAPITAL
 EXPENDITURES, IF ANY.
   (E) "COMING FISCAL YEAR" MEANS THE FISCAL YEAR OF THE LOCAL GOVERNMENT
 FOR  WHICH  A  TAX  LEVY LIMITATION SHALL BE DETERMINED PURSUANT TO THIS
 SECTION.
   (F) "INFLATION FACTOR" MEANS THE QUOTIENT OF: (I) THE AVERAGE  OF  THE
 NATIONAL  CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES DEPART-
 MENT OF LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE
 START OF THE COMING FISCAL  YEAR  MINUS  THE  AVERAGE  OF  THE  NATIONAL
 CONSUMER  PRICE  INDEXES  DETERMINED  BY THE UNITED STATES DEPARTMENT OF

 A. 4088                            18
 
 LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO  THE  START
 OF  THE  PRIOR FISCAL YEAR, DIVIDED BY: (II) THE AVERAGE OF THE NATIONAL
 CONSUMER PRICE INDEXES DETERMINED BY THE  UNITED  STATES  DEPARTMENT  OF
 LABOR  FOR  THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE START
 OF THE PRIOR FISCAL YEAR, WITH THE RESULT EXPRESSED AS A DECIMAL TO FOUR
 PLACES.
   (G) "LOCAL GOVERNMENT" MEANS A CITY HAVING A POPULATION OF ONE MILLION
 OR MORE.
   (H) "PRIOR FISCAL YEAR" MEANS THE FISCAL YEAR OF THE LOCAL  GOVERNMENT
 IMMEDIATELY PRECEDING THE COMING FISCAL YEAR.
   (I) "TAX LEVY LIMITATION" MEANS THE AMOUNT OF TAXES A LOCAL GOVERNMENT
 IS  AUTHORIZED TO LEVY PURSUANT TO THIS SECTION, PROVIDED, HOWEVER, THAT
 THE TAX LEVY LIMIT SHALL NOT INCLUDE  THE  LOCAL  GOVERNMENT'S  APPROVED
 CAPITAL TAX LEVY, IF ANY.
   3.  (A)  BEGINNING  WITH  THE  FISCAL YEAR THAT BEGINS IN TWO THOUSAND
 TWENTY, NO LOCAL GOVERNMENT SHALL ADOPT A BUDGET  THAT  REQUIRES  A  TAX
 LEVY  THAT IS GREATER THAN THE TAX LEVY LIMITATION FOR THE COMING FISCAL
 YEAR.
   (B) THE STATE COMPTROLLER SHALL CALCULATE THE TAX LEVY LIMITATION  FOR
 EACH  LOCAL  GOVERNMENT  BY  THE ONE HUNDRED TWENTIETH DAY PRECEDING THE
 COMMENCEMENT OF EACH LOCAL GOVERNMENT'S FISCAL YEAR,  AND  SHALL  NOTIFY
 EACH LOCAL GOVERNMENT OF THE TAX LEVY LIMITATION SO DETERMINED.
   (C) THE TAX LEVY LIMITATION APPLICABLE TO THE COMING FISCAL YEAR SHALL
 BE DETERMINED AS FOLLOWS:
   (I)  ASCERTAIN  THE  TOTAL AMOUNT OF TAXES LEVIED FOR THE PRIOR FISCAL
 YEAR.
   (II) ADD ANY PAYMENTS IN LIEU OF TAXES THAT  WERE  RECEIVABLE  IN  THE
 PRIOR FISCAL YEAR.
   (III)  SUBTRACT  THE  APPROVED  CAPITAL  TAX LEVY FOR THE PRIOR FISCAL
 YEAR, IF ANY.
   (IV) SUBTRACT THE LEVY ATTRIBUTABLE TO A LARGE LEGAL SETTLEMENT  OF  A
 TORT  ACTION EXCLUDED FROM THE LEVY LIMITATION IN THE PRIOR FISCAL YEAR,
 IF ANY.
   (V) MULTIPLY THE RESULT BY THE ALLOWABLE LEVY GROWTH FACTOR.
   (VI) SUBTRACT ANY PAYMENTS IN LIEU OF TAXES RECEIVABLE IN  THE  COMING
 FISCAL YEAR.
   (VII) ADD THE AVAILABLE CARRYOVER, IF ANY.
   (D) IN THE EVENT THE CITY COUNCIL OF A LOCAL GOVERNMENT HAS APPROVED A
 LEGAL  SETTLEMENT  OF  A  TORT ACTION AGAINST THE GOVERNMENT, THE ANNUAL
 COSTS OF WHICH EXCEED TEN PERCENT OF THE PROPERTY TAXES  LEVIED  BY  THE
 LOCAL  GOVERNMENT  IN THE PRIOR FISCAL YEAR, THE STATE COMPTROLLER, UPON
 APPLICATION BY THE LOCAL GOVERNMENT, MAY ADJUST THE TAX LEVY  LIMITATION
 FOR  THE  COMING  FISCAL  YEAR  APPLICABLE  TO SUCH LOCAL GOVERNMENT, BY
 ADDING THE ANNUAL COSTS OF SUCH SETTLEMENT TO THE TAX LEVY LIMITATION.
   (E) THE STATE COMPTROLLER SHALL DETERMINE THE PORTION OF THE TAX  LEVY
 OF  EACH  LOCAL  GOVERNMENT  THAT  IS  ATTRIBUTABLE  TO  ANY INCREASE OR
 DECREASE OVER THE PRIOR YEAR IN THE COST OF THE LOCAL  GOVERNMENT  SHARE
 OF  DIRECT CASH ASSISTANCE TO PERSONS ELIGIBLE FOR THE FEDERAL-STATE-LO-
 CAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES PROGRAM  OR  THE  STATE-LOCAL
 SAFETY  NET  ASSISTANCE PROGRAM AND SHALL ADJUST THE TAX LEVY LIMITATION
 FOR SUCH LOCAL GOVERNMENT TO REFLECT SUCH CHANGE.
   4. A LOCAL GOVERNMENT MAY ADOPT A BUDGET THAT REQUIRES A TAX LEVY THAT
 IS GREATER THAN THE TAX LEVY LIMITATION FOR THE COMING FISCAL YEAR  ONLY
 IF  THE  CITY  COUNCIL  OF SUCH LOCAL GOVERNMENT FIRST ENACTS, BY A TWO-
 THIRDS VOTE OF THE TOTAL VOTING POWER OF SUCH CITY COUNCIL, A LOCAL  LAW
 TO OVERRIDE SUCH LIMITATION FOR SUCH COMING FISCAL YEAR ONLY.

 A. 4088                            19
 
   5.  IN  THE  EVENT  A  LOCAL  GOVERNMENT'S ACTUAL TAX LEVY FOR A GIVEN
 FISCAL YEAR EXCEEDS THE MAXIMUM ALLOWABLE LEVY AS  ESTABLISHED  PURSUANT
 TO  THIS  SECTION DUE TO CLERICAL OR TECHNICAL ERRORS, THE LOCAL GOVERN-
 MENT SHALL PLACE THE EXCESS AMOUNT OF THE LEVY IN RESERVE IN  ACCORDANCE
 WITH SUCH REQUIREMENTS AS THE STATE COMPTROLLER MAY PRESCRIBE, AND SHALL
 USE  SUCH  FUNDS  AND ANY INTEREST EARNED THEREON TO OFFSET THE TAX LEVY
 FOR THE ENSUING FISCAL YEAR.
   § 2. Paragraphs j and k of subdivision 2 of section 23 of the  munici-
 pal home rule law are relettered paragraphs k and l, and a new paragraph
 j is added to read as follows:
   J.  OVERRIDES THE TAX LEVY LIMITATION APPLICABLE FOR THE COMING FISCAL
 YEAR IN ACCORDANCE WITH SECTION THREE-F OF THE GENERAL MUNICIPAL LAW.
   §  3.  This act shall take effect immediately and shall first apply to
 the levy of taxes by local governments for the fiscal year  that  begins
 in 2020.
   § 3. 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.
   § 4. This act shall take effect immediately; provided,  however,  that
 the  applicable effective date of Parts A through J of this act shall be
 as specifically set forth in the last section of such Parts.