S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8852
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             December 18, 2019
                                ___________
 
 Introduced  by  M.  of  A.  RA,  NORRIS -- read once and referred to the
   Committee on Ways and Means
 
 AN ACT to amend the tax law, in relation to certain payments to be  made
   to Nassau and Erie counties
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Paragraph 3 of subdivision (c) of section 1261 of  the  tax
 law,  as  amended by section 9 of part SS-1 of chapter 57 of the laws of
 2008, is amended to read as follows:
   (3) However, the taxes, penalties and interest which (i) the county of
 Nassau, (ii) the county of Erie, to the extent the  county  of  Erie  is
 contractually  or statutorily obligated to allocate and apply or pay net
 collections to the city of Buffalo and to the extent  that  such  county
 has  set  aside net collections for educational purposes attributable to
 the Buffalo school district, or the city of Buffalo or (iii) the  county
 of  Erie  is authorized to impose pursuant to section twelve hundred ten
 of this article, other than such taxes in the amounts described, respec-
 tively, in subdivisions one and two of section one thousand two  hundred
 sixty-two-e of this part, during the period that such section authorizes
 Nassau  county  to establish special or local assistance programs there-
 under, together with any penalties and  interest  related  thereto,  and
 after  the  comptroller  has  reserved  such refund fund and such costs,
 shall, commencing on the next payment date after the effective  date  of
 this  sentence  and of each month thereafter, until such date as (i) the
 Nassau county  interim  finance  authority  shall  have  no  obligations
 outstanding,  or (ii) the Buffalo fiscal stability authority shall cease
 to exist, or (iii) the Erie  county  fiscal  stability  authority  shall
 cease  to  exist,  be  paid by the comptroller, respectively, to (i) the
 Nassau county interim finance authority to  be  applied  by  the  Nassau
 county interim finance authority, or (ii) to the Buffalo fiscal stabili-
 ty authority to be applied by the Buffalo fiscal stability authority, or
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14044-04-9

 A. 8852                             2
 
 (iii) to the Erie county fiscal stability authority to be applied by the
 Erie  county  fiscal  stability  authority,  as  the case may be, in the
 following order of priority: first pursuant to the Nassau county interim
 finance  authority's  contracts  with  bondholders or the Buffalo fiscal
 stability authority's contracts with  bondholders  or  the  Erie  county
 fiscal  stability  authority's contracts with bondholders, respectively,
 then to pay the Nassau  county  interim  finance  authority's  operating
 expenses  not  otherwise  provided  for  or the Buffalo fiscal stability
 authority's operating expenses not otherwise provided for  or  the  Erie
 county  fiscal  stability  authority's  operating expenses not otherwise
 provided for, respectively, and then (i) pursuant to the  Nassau  county
 interim  finance authority's agreements with the county of Nassau, which
 agreements shall require the Nassau county interim finance authority  to
 transfer  such  taxes,  penalties and interest remaining after providing
 for contractual or  other  obligations  of  the  Nassau  county  interim
 finance  authority,  and subject to any agreement between such authority
 and the county of Nassau, to the county of Nassau as frequently as prac-
 ticable, HOWEVER, AFTER  THE  COMPTROLLER  HAS  MADE  THE  PAYMENTS  FOR
 CONTRACTS WITH NASSAU COUNTY INTERIM FINANCE AUTHORITY'S BONDHOLDERS AND
 PAYMENTS   FOR  NASSAU  COUNTY  INTERIM  FINANCE  AUTHORITY'S  OPERATING
 EXPENSES, FOR EACH MUNICIPALITY IN NASSAU COUNTY THAT  RECEIVED  A  BASE
 LEVEL  GRANT  IN  STATE  FISCAL  YEAR TWO THOUSAND EIGHTEEN-TWO THOUSAND
 NINETEEN BUT NOT IN STATE FISCAL YEAR TWO THOUSAND NINETEEN-TWO THOUSAND
 TWENTY UNDER THE AID AND INCENTIVES FOR MUNICIPALITIES PROGRAM  PURSUANT
 TO  SUBDIVISION  TEN OF SECTION FIFTY-FOUR OF THE STATE FINANCE LAW, THE
 COMPTROLLER SHALL ANNUALLY WITHHOLD FROM THE REMAINING TAXES,  PENALTIES
 AND  INTEREST  IMPOSED BY NASSAU COUNTY IN WHICH A MAJORITY OF THE POPU-
 LATION OF SUCH MUNICIPALITY IN NASSAU COUNTY RESIDES AN AMOUNT EQUAL  TO
 THE  BASE  LEVEL GRANT RECEIVED BY SUCH MUNICIPALITY IN NASSAU COUNTY IN
 STATE FISCAL YEAR TWO THOUSAND EIGHTEEN-TWO THOUSAND NINETEEN AND  SHALL
 ANNUALLY DISTRIBUTE, BY DECEMBER FIFTEENTH, TWO THOUSAND NINETEEN AND BY
 SUCH DATE ANNUALLY THEREAFTER, SUCH AMOUNT DIRECTLY TO SUCH MUNICIPALITY
 IN NASSAU COUNTY, UNLESS SUCH MUNICIPALITY IN NASSAU COUNTY HAS A FISCAL
 YEAR  ENDING  MAY  THIRTY-FIRST,  THEN SUCH ANNUAL DISTRIBUTION SHALL BE
 MADE BY MAY FIFTEENTH, TWO THOUSAND TWENTY AND  BY  SUCH  DATE  ANNUALLY
 THEREAFTER.  NO  COUNTY SHALL HAVE ANY RIGHT, TITLE OR INTEREST IN OR TO
 THE TAXES, PENALTIES AND INTEREST REQUIRED TO BE WITHHELD  AND  DISTRIB-
 UTED  PURSUANT TO THIS PARAGRAPH; or (ii) pursuant to the Buffalo fiscal
 stability authority's agreements with the city of Buffalo, which  agree-
 ments  shall  require the Buffalo fiscal stability authority to transfer
 such  taxes,  penalties  and  interest  remaining  after  providing  for
 contractual or other obligations of the Buffalo fiscal stability author-
 ity, and subject to any agreement between such authority and the city of
 Buffalo,  to the city of Buffalo or the city of Buffalo school district,
 as the case may be, as frequently as practicable; or (iii)  pursuant  to
 the  Erie county fiscal stability authority's agreements with the county
 of Erie, which agreements shall require the Erie county fiscal stability
 authority to transfer such taxes, penalties and interest remaining after
 providing for contractual or other obligations of the Erie county fiscal
 stability authority, and subject to any agreement between such authority
 and the county of Erie, to the county of Erie as frequently as practica-
 ble, HOWEVER, AFTER THE COMPTROLLER HAS MADE THE PAYMENTS FOR ERIE COUN-
 TY FISCAL STABILITY AUTHORITY'S CONTRACTS WITH BONDHOLDERS AND  PAYMENTS
 FOR  ERIE  COUNTY  FISCAL  STABILITY AUTHORITY'S OPERATING EXPENSES, FOR
 EACH MUNICIPALITY IN ERIE COUNTY THAT RECEIVED A  BASE  LEVEL  GRANT  IN
 STATE FISCAL YEAR TWO THOUSAND EIGHTEEN-TWO THOUSAND NINETEEN BUT NOT IN

 A. 8852                             3
 
 STATE  FISCAL  YEAR  TWO THOUSAND NINETEEN-TWO THOUSAND TWENTY UNDER THE
 AID AND INCENTIVES FOR MUNICIPALITIES PROGRAM  PURSUANT  TO  SUBDIVISION
 TEN  OF  SECTION  FIFTY-FOUR  OF  THE STATE FINANCE LAW, THE COMPTROLLER
 SHALL ANNUALLY WITHHOLD FROM THE REMAINING TAXES, PENALTIES AND INTEREST
 IMPOSED  BY  ERIE  COUNTY  IN WHICH A MAJORITY OF THE POPULATION OF SUCH
 MUNICIPALITY IN ERIE COUNTY RESIDES AN AMOUNT EQUAL TO  THE  BASE  LEVEL
 GRANT  RECEIVED BY SUCH MUNICIPALITY IN ERIE COUNTY IN STATE FISCAL YEAR
 TWO THOUSAND EIGHTEEN-TWO THOUSAND NINETEEN AND SHALL ANNUALLY  DISTRIB-
 UTE, BY DECEMBER FIFTEENTH, TWO THOUSAND NINETEEN AND BY SUCH DATE ANNU-
 ALLY THEREAFTER, SUCH AMOUNT DIRECTLY TO SUCH MUNICIPALITY IN ERIE COUN-
 TY, UNLESS SUCH MUNICIPALITY IN ERIE COUNTY HAS A FISCAL YEAR ENDING MAY
 THIRTY-FIRST,  THEN  SUCH  ANNUAL  DISTRIBUTION  SHALL  BE  MADE  BY MAY
 FIFTEENTH, TWO THOUSAND TWENTY AND BY SUCH DATE ANNUALLY THEREAFTER.  NO
 COUNTY  SHALL  HAVE  ANY  RIGHT,  TITLE  OR INTEREST IN OR TO THE TAXES,
 PENALTIES AND INTEREST REQUIRED TO BE WITHHELD AND DISTRIBUTED  PURSUANT
 TO THIS PARAGRAPH. During the period that the comptroller is required to
 make  payments  to the Nassau county interim finance authority described
 in the previous sentence, the county of  Nassau  shall  have  no  right,
 title  or  interest in or to such taxes, penalties and interest required
 to be paid to the Nassau county interim  finance  authority,  except  as
 provided  in  such  authority's  agreements  with  the county of Nassau.
 During the period that the comptroller is required to make  payments  to
 the  Buffalo fiscal stability authority described in the second previous
 sentence, the city of Buffalo and such school  district  shall  have  no
 right,  title  or  interest  in or to such taxes, penalties and interest
 required to be paid to the Buffalo fiscal stability authority, except as
 provided in such authority's agreements with the city of Buffalo. During
 the period that the comptroller is required to make payments to the Erie
 county fiscal  stability  authority  described  in  the  third  previous
 sentence,  the  county of Erie shall have no right, title or interest in
 or to such taxes, penalties and interest required to be paid to the Erie
 county fiscal stability authority, except as provided in  such  authori-
 ty's agreements with the county of Erie.
   § 2. This act shall take effect immediately.