S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7243--A
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 18, 2019
                                ___________
 
 Introduced  by  M.  of  A.  STERN, LAVINE, M. L. MILLER -- read once and
   referred to the Committee on Education -- committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee
 
 AN ACT authorizing funds in the case of  certain  tax  certiorari  chal-
   lenges  or agreed upon settlements; and to amend the education law, in
   relation to authorizing a  board  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. 1. Contingent upon available funding,  and  not  to  exceed
 $69,000,000,  moneys  shall  be available for a local government entity,
 which for the purposes of this section shall mean a county, city,  town,
 village,  school  district,  special  district,  school  district public
 library or municipal public library where, on or after April 1, 2019,  a
 successful  tax  certiorari  challenge or an agreed upon settlement that
 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 regard 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, or that has resulted in a real property tax
 levy increase of over twenty percent of a local government entity.  Such
 moneys  attributable  to  a  successful  tax certiorari challenge, or an
 agreed upon settlement, shall be paid annually on a  first  come,  first
 serve  basis by the New York state urban development corporation to such
 local government entity within reasonable time  upon  confirmation  from
 the  state  office of real property tax services or the local industrial
 development authority  established  pursuant  to  the  local  industrial
 development agency pursuant to article eighteen-A of the general munici-
 pal law that such tax certiorari judgment, or an agreed upon settlement,
 has  resulted  in  a  reduction  in the real property tax collections or
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10714-06-0

 A. 7243--A                          2
 
 payment in lieu of taxes, provided, however, that the urban  development
 corporation shall not provide assistance to such local government entity
 for  more than fifteen years in the case of a tax certiorari judgment or
 agreed  upon settlement, and shall award payments reflecting the loss of
 revenues due to the tax certiorari judgment or an agreed upon settlement
 as follows:
   (a) for award year one, a maximum potential  award  of  no  more  than
 eighty percent of loss of revenues;
   (b)  for  award  year  two,  a maximum potential award of no more than
 seventy percent of loss of revenues;
   (c) for award year three, a maximum potential award of  no  more  than
 sixty percent of loss of revenues;
   (d)  for  award  year  four, a maximum potential award of no more than
 fifty percent of loss of revenues;
   (e) for award year five, a maximum potential award  of  no  more  than
 forty percent of loss of revenues;
   (f)  for  award  year  six,  a maximum potential award of no more than
 thirty percent of loss of revenues; and
   (g) for award years seven through fifteen, a maximum  potential  award
 of no more than twenty percent of loss of revenues.
   2. 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 tax certiorari  mitigation  fund  once  a  final  judgment  or
 settlement  agreement  in  a tax certiorari proceeding has been filed or
 executed. The date of submission of a local government entity's applica-
 tion 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 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 tax certiorari mitigation fund must  submit
 an attestation to the department of public service that a final judgment
 or settlement agreement in a tax certiorari proceeding has been filed or
 executed.
   3.  For  a  facility with a tax certiorari judgment or settlement, the
 appropriate agency shall submit such attestation to the  urban  develop-
 ment corporation upon receipt of the determination of the amount of such
 annual  payment  which shall be determined by the president 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, and  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 $69,000,000.
   § 2. The education law is amended by adding a new section 3654 to read
 as follows:
   § 3654. 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 ANY SCHOOL DISTRICT IMPACTED BY A TAX CERTIORARI ACTION;
   (II)  "TAX CERTIORARI STABILIZATION RESERVE FUND" OR "FUND" SHALL MEAN
 THE TAX CERTIORARI STABILIZATION RESERVE FUND  ESTABLISHED  PURSUANT  TO
 THIS SECTION; AND
   (III)  "SCHOOL  DISTRICT"  OR  "DISTRICT"  SHALL MEAN ANY OTHER SCHOOL
 DISTRICT THAT IS IMPACTED BY A TAX CERTIORARI ACTION.

 A. 7243--A                          3
 
   (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  FORTY-ONE  OF THIS CHAPTER. 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 AVAILABLE
 FUNDS.
   (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
 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 SEVEN OF
 SECTION SEVENTEEN HUNDRED SIXTEEN OF  THIS  CHAPTER;  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.