NY State Senate Bill 2021-S1313

Senate Bill S1313

2021-2022 Legislative Session

Relates to the liability of a municipality or governmental subdivision for the refund of property taxes to the Long Island power authority

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Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to energy and telecommunications returned to senate died in assembly
Feb 10, 2021	referred to corporations, authorities and commissions delivered to assembly passed senate
Feb 08, 2021	advanced to third reading
Feb 03, 2021	2nd report cal.
Feb 02, 2021	1st report cal.253
Jan 11, 2021	referred to energy and telecommunications

Votes

- Feb 10, 2021 - Floor Vote
  S1313
  
  53
  
  Aye
  
  10
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Feb 10, 2021
      
      aye (53)
      
      Addabbo Jr.
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Borrello
      
      Boyle
      
      Breslin
      
      Brisport
      
      Brooks
      
      Brouk
      
      Comrie
      
      Cooney
      
      Felder
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kaminsky
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Mattera
      
      May
      
      Mayer
      
      Myrie
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Reichlin-Melnick
      
      Rivera
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Weik
      
      nay (10)
      
      Akshar
      
      Helming
      
      Jordan
      
      Kaplan
      
      Martucci
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Rath III
      
      Ritchie
  Feb 2, 2021 - Energy And Telecommunications Committee Vote
  S1313
  
  7
  
  Aye
  
  2
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Energy And Telecommunications Committee Vote: Feb 2, 2021
      
      aye (7)
      
      Boyle
      
      Gaughran
      
      Harckham
      
      Hinchey
      
      Kavanagh
      
      Kennedy
      
      Parker
      
      nay (2)
      
      O'Mara
      
      Ritchie

co-Sponsors

2021-S1313 (ACTIVE) - Details

Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Authorities Law
Laws Affected:: Amd §1020-q, Pub Auth L
Versions Introduced in 2019-2020 Legislative Session:: S5122

2021-S1313 (ACTIVE) - Summary

Relates to the liability of a municipality or governmental subdivision for the refund of property taxes to the Long Island power authority.

2021-S1313 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S1313

SPONSOR: GAUGHRAN
 
TITLE OF BILL:

An act to amend the public authorities law, in relation to the liability
of a municipality or governmental subdivision for the refund of property
taxes to the Long Island power authority

 
PURPOSE:

The purpose of this bill is to limit the financial impact of adverse tax
certiorari challenges by LIPA on affected local governmental entities.

 
SUMMARY OF PROVISIONS:

Section one adds a new subdivision four to section 1020-q of the public
authorities law. Parallel to the preceding subdivision, this provision
would limit the remedies available to LIPA when bringing tax certiorari
challenges by prohibiting relief in the form of repayment of all or part
of the taxes assessed against any power plant, transmission line or

substation from a prior year. This limitation would be extended to third
party power producers receiving reimbursement for property taxes by the
Authority.

Section two contains a severability clause.

Section three provides that this act shall take effect thirty days after
becoming law.

 
JUSTIFICATION:

In 1998, LIPA acquired all the capital stock and associated assets of
Long Island Lighting Company (LILCO), which operated the electrical
system on Long Island. In connection with that acquisition, the authori-
ty took over ultimate responsibility for providing electric utility
service to residential, commercial, industrial, nonprofit and govern-
mental customers in the counties of Suffolk, Nassau and a portion of
Queens.

At the time of acquisition, then-Chairman Richard Kessel memorialized an
agreement that LIPA would never challenge the assessed values of their
properties, provided the municipalities never raised them. The devastat-
ing impact that tax-certiorari challenges would have on local govern-
mental entities was recognized from LIPA's inception.

In fact, at the time of acquisition the Shoreham Power Plant (through
LILCO), was challenging its tax assessment. To remedy this, a provision
was added to the enabling law governing LIPA providing that no refund of
taxes resulting from any judicial determination would be collected from
the impacted municipality (see Public Authorities Law 1020-q(3)).

Today, LIPA has initiated tax certiorari lawsuits across Long Island in
relation to various properties owned by the Authority. They are chal-
lenging their assessments for the current year, and seeking.  ,relief in
the form of a refund for taxes paid in prior years. This relief, if
granted, would be detrimental to the vitality of the communities in
which these properties are located and would have a direct impact on
their ability to provide indispensable programs and services. These
actions are in direct conflict with LIPA's enabling statute which
explicitly provides that the establishment of the authority will, among
other priorities, realize savings for the . . .  taxpayers in the
service area (see Public Authorities Law 1020-a).

This legislation would prevent LIPA for seeking relief in the form of a
return of past year tax payments, thereby limiting the financial hard-
ship that local governments would endure in the event of an adverse
judgment. This limitation would also be extended to third party power
producers that are reimbursed by LIPA for property taxes.

 
LEGISLATIVE HISTORY:

2019-20: S5122A/A7786

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S1313 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1313
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 11, 2021
                                ___________
 
 Introduced  by Sens. GAUGHRAN, KAMINSKY -- read twice and ordered print-
   ed, and when printed to be committed to the Committee  on  Energy  and
   Telecommunications
 
 AN ACT to amend the public authorities law, in relation to the liability
   of  a municipality or governmental subdivision for the refund of prop-
   erty taxes to the Long Island power authority
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 1020-q of the public authorities law, as amended by
 section  8  of  part A of chapter 173 of the laws of 2013, is amended by
 adding a new subdivision 4 to read as follows:
   4. ON AND AFTER THE EFFECTIVE DATE OF  THIS  SUBDIVISION,  NO  MUNICI-
 PALITY  OR  GOVERNMENTAL    SUBDIVISION,  INCLUDING A SCHOOL DISTRICT OR
 SPECIAL DISTRICT, SHALL BE OR BECOME LIABLE TO  THE  AUTHORITY,  OR  ANY
 REIMBURSED  THIRD  PARTY POWER PRODUCER, FOR A  REFUND OF PROPERTY TAXES
 ORIGINALLY ASSESSED  AGAINST  ANY  POWER  PLANT,  TRANSMISSION  LINE  OR
 SUBSTATION  OWNED  BY  THE  AUTHORITY,  ITS PREDECESSOR IN INTEREST OR A
 THIRD PARTY POWER PRODUCER WHEN THE THIRD PARTY POWER PRODUCER IS  REIM-
 BURSED  BY  THE AUTHORITY FOR ANY PORTION OF THE PROPERTY TAXES ASSESSED
 AGAINST A POWER PLANT, TRANSMISSION LINE  OR  SUBSTATION  OWNED  BY  THE
 THIRD  PARTY  POWER  PRODUCER,  HEREINAFTER REFERRED TO AS A "REIMBURSED
 THIRD PARTY POWER PRODUCER". ANY JUDICIAL DETERMINATION  THAT  ANY  SUCH
 POWER  PLANT,  TRANSMISSION LINE OR SUBSTATION ASSESSMENT WAS EXCESSIVE,
 UNEQUAL OR UNLAWFUL ON OR AFTER THE EFFECTIVE DATE OF  THIS  SUBDIVISION
 SHALL  NOT RESULT IN A REFUND BY ANY TAXING JURISDICTION FOR ANY PORTION
 OF TAXES PREVIOUSLY PAID BY THE AUTHORITY, ITS PREDECESSOR IN  INTEREST,
 OR ANY REIMBURSED THIRD PARTY POWER PRODUCER AS DEFINED IN THIS SUBDIVI-
 SION,  PURSUANT  TO  SUCH  POWER  PLANT, TRANSMISSION LINE OR SUBSTATION
 ASSESSMENT. THE AUTHORITY, AND ANY REIMBURSED THIRD PARTY POWER PRODUCER
 SHALL DISCONTINUE OR ABANDON ALL PROCEEDINGS, BROUGHT BY ITS PREDECESSOR
 IN INTEREST OR ANY REIMBURSED THIRD PARTY POWER PRODUCER, WHICH SEEK THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD03947-01-1

 S. 1313                             2
 
 REPAYMENT OF ALL OR PART OF THE TAXES ASSESSED AGAINST  ANY  SUCH  POWER
 PLANT,  TRANSMISSION  LINE  OR  SUBSTATION  FORMERLY  OWNED  BY LILCO OR
 CURRENTLY OWNED BY THE AUTHORITY OR ANY  REIMBURSED  THIRD  PARTY  POWER
 PRODUCER.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or  part  of  this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such 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.
   § 3. This act shall take effect on the thirtieth day  after  it  shall
 have become a law.

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Senate Bill S1313

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James Gaughran