S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3390
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 2, 2023
                                ___________
 
 Introduced  by  M.  of  A. RA, BARCLAY, BLANKENBUSH, BRABENEC, DiPIETRO,
   FITZPATRICK, FRIEND, J. M. GIGLIO, GOODELL, HAWLEY, MILLER, MORINELLO,
   NORRIS, PALMESANO, WALSH, SMULLEN, MANKTELOW -- read once and referred
   to the Committee on Ways and Means
 
 AN ACT to amend 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, 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 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 G); 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  H);  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 I)

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07375-01-3
 A. 3390                             2
              

 
   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,
 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 structural changes will help make New York more  compet-
 itive, and a more attractive place to build a business and raise a fami-
 ly. They will also provide low-income New Yorkers with additional oppor-
 tunities 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
 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, assuming  the  growth
 in property taxes for school districts and local governments that remain
 A. 3390                             3
 
 under  the  real  property tax cap to take the burden off of homeowners,
 creating a property 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 I. 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  effec-
 tive 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  2024:  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, 2024 THROUGH DECEMBER 31, 2024, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT  SHALL  BE  REDUCED  BY 10% FROM THE 2023 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 2025 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, 2025 THROUGH DECEMBER 31, 2025, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT  SHALL  BE  REDUCED  BY 20% FROM THE 2023 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 2026 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
 A. 3390                             4

 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 30% FROM THE 2023 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 2027 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, 2027 THROUGH DECEMBER 31, 2027, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT SHALL BE REDUCED BY 40% FROM THE  2023  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 2028 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, 2028 THROUGH DECEMBER 31, 2028, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT SHALL BE REDUCED BY 50% FROM THE 2023 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-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, 2029 THROUGH DECEMBER 31, 2029, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT  SHALL  BE REDUCED BY 60% FROM THE 2023 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-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, 2030 THROUGH DECEMBER 31, 2030, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT SHALL BE REDUCED BY 70% FROM THE 2023 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 2031 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, 2031 THROUGH DECEMBER 31, 2031, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT  SHALL  BE REDUCED BY 80% FROM THE 2023 EXPENDITURES; AND SHALL
 A. 3390                             5
 
 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 2032 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, 2032 THROUGH DECEMBER 31, 2032, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT  SHALL  BE REDUCED BY 90% FROM THE 2023 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  2033  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, 2033 THROUGH DECEMBER 31, 2033, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT SHALL BE REDUCED BY 100% FROM THE 2023 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 2034 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)  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  2.5%
 from the 2023 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
 A. 3390                             6
 
 reductions, or property tax rebates, effective in the local government's
 2025 fiscal year;
   (b)  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  5%
 from the 2023 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
 2026 fiscal year;
   (c) 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 7.5%
 from the 2023 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
 2027 fiscal year;
   (d)  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  10%
 from the 2023 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
 2028 fiscal year;
   (e) 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 12.5%
 from the 2023 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;
   (f) 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 15%
 from the 2023 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;
   (g)  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 17.5%
 from the 2023 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;
   (h)  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  20%
 A. 3390                             7

 from the 2023 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;
   (i)  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 22.5%
 from the 2023 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  2033  fiscal
 year;
   (j)  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  25%
 from the 2023 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;
   (k) 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 27.5%
 from the 2023 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;
   (l) 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 30%
 from the 2023 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;
   (m)  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 32.5%
 from the 2023 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;
   (n)  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  35%
 from the 2023 expenditures; and shall remain eliminated each year there-
 after. No less than 100% of the annual savings from this medical assist-
 A. 3390                             8
 
 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;
   (o)  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 37.5%
 from the 2023 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;
   (p)  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  40%
 from the 2023 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;
   (q) commencing with the period January 1, 2040  through  December  31,
 2040, calendar year social services district medical assistance expendi-
 ture amounts for each social services district shall be reduced by 42.5%
 from the 2023 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 2041 fiscal
 year;
   (r) commencing with the period January 1, 2041  through  December  31,
 2041, calendar year social services district medical assistance expendi-
 ture  amounts  for each social services district shall be reduced by 45%
 from the 2023 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  2042  fiscal
 year;
   (s)  commencing  with  the period January 1, 2042 through December 31,
 2042, calendar year social services district medical assistance expendi-
 ture amounts for each social services district shall be reduced by 47.5%
 from the 2023 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  2043  fiscal
 year;
   (t)  commencing  with  the period January 1, 2043 through December 31,
 2043, calendar year social services district medical assistance expendi-
 ture amounts for each social services district shall be reduced  by  50%
 from the 2023 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. 3390                             9
 
 property  tax  rebates,  effective in the local government's 2044 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 WHO 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;
   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
 A. 3390                            10
 
 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.
   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-
 A. 3390                            11
 
 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 TWENTY-THREE 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, 2023.
 
                                  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
 
   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
 A. 3390                            12
 
 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 TWENTY-THREE. Provided, however, for taxa-
 ble 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  thou-
 sand  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 TWENTY-THREE,  FOR  A  PERSON
 WHOSE  NEW  YORK  ADJUSTED  GROSS  INCOME  IS  LESS  THAN FORTY THOUSAND
 DOLLARS, SUCH APPLICABLE PERCENTAGE SHALL BE EQUAL TO  (I)  TWO  HUNDRED
 PERCENT, PLUS (II) TWENTY PERCENT MULTIPLIED BY A FRACTION WHOSE NUMERA-
 TOR  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 appli-
 cable percentage shall, for taxable years ending on or after the date on
 which the reversion event occurred, be determined using the rules speci-
 fied 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, administrative, statutory or regulatory changes, materially  reduces
 or  eliminates  New  York  state's  allocation  of the federal temporary
 A. 3390                            13
 
 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. 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  TERM "INDEPENDENT SPECIAL DISTRICT" MEANS A SPECIAL DISTRICT
 AS DEFINED BY SECTION ONE HUNDRED TWO OF THE REAL PROPERTY TAX LAW  THAT
 EITHER  (I) HAS A SEPARATE INDEPENDENT ELECTED BOARD, AND EITHER HAS THE
 AUTHORITY TO LEVY A TAX, OR CAN REQUIRE A MUNICIPAL CORPORATION TO  LEVY
 A  TAX ON ITS BEHALF, OR (II) HAS A SEPARATE INDEPENDENT BOARD APPOINTED
 BY THE GOVERNING BODY OF ANOTHER MUNICIPAL CORPORATION  AND  EITHER  HAS
 THE  AUTHORITY  TO  LEVY A TAX OR CAN REQUIRE A MUNICIPAL CORPORATION TO
 LEVY A TAX ON ITS BEHALF.
   (C) THE TERM "DEPENDENT SCHOOL DISTRICT" MEANS A SCHOOL DISTRICT  THAT
 IS  SUBJECT  TO  ARTICLE  FIFTY-TWO  OF THE EDUCATION LAW AND THAT HAS A
 POPULATION OF LESS THAN ONE MILLION.
   (D) 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.
   (E) 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.
   (F)  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 CHAPTER 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.
 A. 3390                            14
 
   (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.
   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  REQUIRE-
 MENTS  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-d
 to read as follows:
   § 3-D. CERTIFICATION OF COMPLIANCE WITH STATE AID TO LOCAL GOVERNMENTS
 FOR REAL PROPERTY.  1.  A  LOCAL  GOVERNMENT  THAT  IS  SUBJECT  TO  THE
 A. 3390                            15
 
 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
 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 H
 
   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
 A. 3390                            16
 
 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  COST  SAVINGS  RECOMMENDATIONS  REGARDING  THE
 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 I
 
   Section 1. The general municipal  law  is  amended  by  adding  a  new
 section 3-e to read as follows:
   §  3-E.  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
 A. 3390                            17

 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
 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-FOUR,  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.
 A. 3390                            18
 
   (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.
   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-E 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 2024.
   § 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 I of this act shall  be
 as specifically set forth in the last section of such Parts.