S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9943--A
 
                           I N  A S S E M B L Y
 
                              April 26, 2024
                                ___________
 
 Introduced by M. of A. THIELE -- read once and referred to the Committee
   on Local Governments -- reported and referred to the Committee on Ways
   and  Means -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee
 
 AN ACT to amend the town law, in relation  to  the  Peconic  Bay  region
   community preservation funds; and to repeal certain provisions of such
   law relating thereto
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions 1 and 3 of section 64-e of the  town  law,  as
 amended by chapter 551 of the laws of 2015, paragraph (e) of subdivision
 1 as separately amended by chapters 490 and 501 of the laws of 2018, are
 amended to read as follows:
   1.  As  used in this section, the following words and terms shall have
 the following meanings:
   (a) "Peconic Bay region" means the towns of East  Hampton,  Riverhead,
 Shelter Island, Southampton and Southold.
   (b)  "Community  preservation"  shall  mean  and  include  any  of the
 purposes outlined in subdivision four of this section.
   (c) "Board" means the advisory board required pursuant to  subdivision
 five of this section.
   (d)  "Fund"  means the community preservation fund created pursuant to
 subdivision two of this section.
   (e) "Water quality improvement project" means[: (1) wastewater  treat-
 ment  improvement  projects;  (2) non-point source abatement and control
 program projects developed pursuant to section eleven-b of the soil  and
 water conservation districts law, title 14 of article 17 of the environ-
 mental  conservation  law,  section  1455b  of  the federal coastal zone
 management act, or article forty-two of the executive law;  (3)  aquatic
 habitat restoration projects; (4) pollution prevention projects; (5) the
 construction  of  public water mains and connections to provide drinking
 water to inhabitants whose drinking water supply has  been  contaminated
 by  toxic  chemicals  as defined in section 37-0301 of the environmental
 conservation law, hazardous substances as defined in section 40-0105  of
 the  environmental  conservation law or emerging contaminants as defined
 in section eleven hundred twelve of the public health law; and  (6)  the
 operation  of the Peconic Bay National Estuary Program, as designated by
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14763-06-4
 A. 9943--A                          2

 the United States Environmental Protection  Agency;  and  (6)  a  septic
 system  replacement  loan  program, pursuant to section sixty-four-ee of
 the town law. Such projects shall have as their purpose the  improvement
 of existing water quality to meet existing specific water quality stand-
 ards.  Projects  which  have  as  a purpose to permit or accommodate new
 growth shall not be included within this definition.
   (f) "Wastewater treatment improvement  project"  means  the  planning,
 design, construction, acquisition, enlargement, extension, or alteration
 of  a  wastewater treatment facility, including alternative systems to a
 sewage treatment plant or traditional septic system, to treat,  neutral-
 ize, stabilize, eliminate or partially eliminate sewage or reduce pollu-
 tants  in  treatment  facility  effluent,  including  permanent or pilot
 demonstration wastewater treatment projects, or equipment or furnishings
 thereof. Stormwater collecting systems and vessel pumpout stations shall
 also be included within  the  definition  of  a  wastewater  improvement
 project.
   (g)  "Aquatic habitat restoration project" means the planning, design,
 construction, management, maintenance,  reconstruction,  revitalization,
 or  rejuvenation  activities  intended to improve waters of the state of
 ecological significance or any part thereof, including, but not  limited
 to  ponds,  bogs,  wetlands, bays, sounds, streams, rivers, or lakes and
 shorelines thereof, to support a spawning, nursery, wintering,  migrato-
 ry,  nesting,  breeding,  feeding,  or foraging environment for fish and
 wildlife and other biota.
   (h)  "Pollution  prevention  project"  means  the  planning,   design,
 construction,  improvement,  maintenance  or  acquisition of facilities,
 production processes, equipment or buildings owned or operated by  muni-
 cipalities  for  the  reduction, avoidance, or elimination of the use of
 toxic or hazardous substances or the generation of  such  substances  or
 pollutants  so  as  to reduce risks to public health or the environment,
 including  changes  in  production  processes  or  raw  materials;  such
 projects  shall  not  include  incineration, transfer from one medium of
 release or discharge to another medium,  off-site  or  out-of-production
 recycling, end-of-pipe treatment or pollution control.
   (i)  "Stormwater  collecting system" means systems of conduits and all
 other  construction,  devices,  and  appliances   appurtenant   thereto,
 designed  and  used  to  collect and carry stormwater and surface water,
 street wash, and other wash and drainage waters to a  point  source  for
 discharge.
   (j) "Vessel pumpout station" means a project for the planning, design,
 acquisition or construction of a permanent or portable device capable of
 removing  human  sewage from a marine holding tank] PROJECTS DESIGNED TO
 IMPROVE THE QUALITY OF DRINKING AND SURFACE WATERS AND PROJECTS, INCLUD-
 ING OPERATIONAL EXPENSES, RELATED TO THE OPERATION OF  THE  PECONIC  BAY
 NATIONAL  ESTUARY  PROGRAM,  AS DESIGNATED BY THE UNITED STATES ENVIRON-
 MENTAL PROTECTION AGENCY.
   (F) "DISADVANTAGED COMMUNITIES" SHALL MEAN A COMMUNITY THAT IS IDENTI-
 FIED PURSUANT TO SECTION 75-0111 OF THE ENVIRONMENTAL CONSERVATION LAW.
   3. The purposes of the fund shall be exclusively, (a) to  implement  a
 plan  for  the  preservation  of community character as required by this
 section, (b) to acquire interests or rights in  real  property  for  the
 preservation  of  community character within the town including villages
 therein in accordance with such plan and  in  cooperation  with  willing
 sellers,  (c)  to establish a bank pursuant to a transfer of development
 rights program consistent with section two hundred sixty-one-a  of  this
 chapter,  (d)  to  provide a management and stewardship program for such
 A. 9943--A                          3
 
 interests and rights consistent with subdivisions  nine  and  nine-a  of
 this  section  and  in  accordance  with  such plan designed to preserve
 community character; provided that not more than ten percent of the fund
 shall be utilized for the management and stewardship program, and (e) to
 implement  water  quality improvement projects in accordance with a plan
 to preserve community character. A maximum of twenty (20) percent of the
 fund may be utilized for the implementation of water quality improvement
 projects; provided that where such water quality improvement  funds  are
 utilized  for the operation of the Peconic Bay National Estuary Program,
 the use of such funds shall only be utilized to  match  federal,  state,
 county,  or  other public or private funds on a dollar for dollar basis,
 not to exceed ten (10) percent of the  annual  amount  appropriated  for
 water  quality  improvement  projects.  UNUSED FUNDS ALLOCATED FOR WATER
 QUALITY IMPROVEMENT PROJECTS PURSUANT TO THIS SUBDIVISION MAY BE CARRIED
 FORWARD FROM YEAR TO YEAR FOR UTILIZATION IN FUTURE  BUDGETS.  IN  TOWNS
 WITH  ONE  OR  MORE  DISADVANTAGED  COMMUNITIES,  NOT LESS THAN TEN (10)
 PERCENT OF THE ANNUAL PROCEEDS OF THE FUND SHALL BE UTILIZED TO  BENEFIT
 SUCH  DISADVANTAGED  COMMUNITIES. If the implementation of the community
 preservation project plan, adopted by  a  town  board,  as  provided  in
 subdivision  six  of  this section, has been completed, and funds are no
 longer needed for the purposes outlined in this  subdivision,  then  any
 remaining  monies  in  the  fund  shall  be applied to reduce any bonded
 indebtedness or obligations incurred to effectuate the purposes of  this
 section.
   §  2.  Subdivision  4  of  section 64-e of the town law, as amended by
 chapter 255 of the laws of 2020, is amended to read as follows:
   4. Preservation of community character shall involve one  or  more  of
 the  following:  (a) establishment of parks, nature preserves, or recre-
 ation areas; (b) preservation  of  open  space,  including  agricultural
 lands provided, however, that farm buildings and structures used for the
 marketing  of farm products produced on such agricultural lands shall be
 permitted; (c) preservation of lands of exceptional  scenic  value;  (d)
 preservation of fresh and saltwater marshes or other wetlands; (e) pres-
 ervation  of  aquifer  recharge  areas;  (f) preservation of undeveloped
 beachlands or shoreline including those at significant risk  of  coastal
 flooding  due  to projected sea level rise and future storms; (g) estab-
 lishment of wildlife refuges  for  the  purpose  of  maintaining  native
 animal  species diversity, including the protection of habitat essential
 to the recovery of rare, threatened or endangered species; (h) preserva-
 tion of pine barrens consisting of such biota as pitch pine,  and  scrub
 oak;  (i)  preservation  of  unique  or threatened ecological areas; (j)
 preservation of rivers and river areas in a natural, free-flowing condi-
 tion; (k) preservation of forested  land;  (l)  preservation  of  public
 access  to  lands  for public use including stream rights and waterways;
 (m) preservation of historic places and properties  listed  on  the  New
 York  state register of historic places and/or protected under a munici-
 pal historic preservation ordinance or law; (n)  preservation  of  lands
 necessary  to  protect  fisheries  and water dependent uses essential to
 maintain and enhance maritime heritage; [and] (o) PRESERVATION OF  LANDS
 THAT  CONTAIN  SIGNIFICANT  CULTURAL  RESOURCES INCLUDING THE ABORIGINAL
 LANDS OF INDIGENOUS PEOPLES, INCLUDING BUT NOT LIMITED TO, BURIAL SITES,
 SETTLEMENTS, AND LANDS UTILIZED FOR CEREMONIAL PURPOSES; AND (P)  under-
 taking  any of the aforementioned in furtherance of the establishment of
 a greenbelt.  Preservation of community character shall also include the
 protection and improvement of the quality of all water resources.
 A. 9943--A                          4
 
   § 3. Subdivision 9 of section 64-e of the town law is REPEALED  and  a
 new subdivision 9 is added to read as follows:
   9.  (A)  LANDS ACQUIRED PURSUANT TO THIS SECTION SHALL BE ADMINISTERED
 AND MANAGED IN A MANNER WHICH MAXIMIZES PUBLIC USE AND  ENJOYMENT  IN  A
 MANNER COMPATIBLE WITH THE CHARACTER OF SUCH LANDS.
   (B)  LANDS  ACQUIRED FOR OPEN SPACE PURPOSES SHALL PRESERVE THE NATIVE
 BIOLOGICAL DIVERSITY OF SUCH LANDS.
   (C) WITH REGARD TO LANDS ACQUIRED FOR OPEN SPACE PURPOSES IMPROVEMENTS
 SHALL BE LIMITED TO MINIMAL IMPROVEMENTS THAT ENHANCE ACCESS FOR PASSIVE
 USE OF SUCH LANDS. SUCH IMPROVEMENTS SHALL NOT  DEGRADE  THE  ECOLOGICAL
 VALUE OF THE LAND OR THREATEN ESSENTIAL WILDLIFE HABITAT.
   (D)  HISTORIC AND CULTURAL PROPERTY SHALL BE PRESERVED CONSISTENT WITH
 ACCEPTED STANDARDS FOR HISTORIC PRESERVATION.  ADAPTIVE  REUSE  OF  SUCH
 PROPERTIES SHALL BE CONSISTENT WITH THE HISTORIC CHARACTER AND PRIOR USE
 OF  THE  PROPERTY  AND SHALL BE CONSISTENT WITH ALL LOCAL LAND USE PLANS
 AND REGULATIONS. SUCH HISTORIC AND CULTURAL  PROPERTIES  SHALL  MAXIMIZE
 PUBLIC USE TO THE EXTENT PRACTICABLE.
   (E)  IN  FURTHERING  THE  PURPOSES OF THIS SECTION, THE TOWN MAY ENTER
 INTO AGREEMENTS WITH CORPORATIONS  ORGANIZED  UNDER  THE  NOT-FOR-PROFIT
 CORPORATION  LAW AND ENGAGED IN PRESERVATION ACTIVITIES TO MANAGE LANDS,
 INCLUDING LESS THAN FEE INTERESTS ACQUIRED PURSUANT TO THE PROVISIONS OF
 THIS SECTION, PROVIDED THAT ANY SUCH AGREEMENT SHALL CONTAIN A PROVISION
 THAT SUCH CORPORATION SHALL KEEP THE  LANDS  ACCESSIBLE  TO  THE  PUBLIC
 UNLESS  SUCH  CORPORATION  SHALL  DEMONSTRATE TO THE SATISFACTION OF THE
 TOWN THAT PUBLIC ACCESSIBILITY WOULD BE DETRIMENTAL TO THE LANDS OR  ANY
 HISTORIC,  CULTURAL,  OR  NATURAL  RESOURCES ASSOCIATED THEREWITH. WHERE
 REVENUES ARE GENERATED BY SUCH CORPORATIONS ON SUCH  LANDS  PURSUANT  TO
 SUCH  AGREEMENTS,  DISPOSITION OF SUCH REVENUES SHALL BE GOVERNED BY THE
 TOWN PURSUANT TO RESOLUTION OR LOCAL LAW.
   § 4. Subdivision 9-a of section 64-e of the town law is REPEALED and a
 new subdivision 9-a is added to read as follows:
   9-A. (A) MANAGEMENT AND STEWARDSHIP FUNDS MAY  ONLY  BE  EXPENDED  FOR
 PROJECTS  RELATED  TO  LANDS  ACQUIRED  FOR  OPEN SPACE PRESERVATION AND
 HISTORIC PRESERVATION PURPOSES. LANDS ACQUIRED  FOR  ANY  OTHER  PURPOSE
 SHALL  NOT BE ELIGIBLE FOR MANAGEMENT AND STEWARDSHIP FUNDS. IN THE CASE
 OF LANDS ACQUIRED FOR OPEN SPACE PRESERVATION PURPOSES,  MANAGEMENT  AND
 STEWARDSHIP  PROJECTS  SHALL  BE  ONLY  EXPENDED FOR: (1) PROJECTS WHICH
 PROMOTE THE PROTECTION OR ENHANCEMENT OF THE NATURAL, SCENIC,  AND  OPEN
 SPACE  CHARACTER FOR WHICH THE INTERESTS OR RIGHTS IN REAL PROPERTY WERE
 ACQUIRED; OR (2) MINIMAL IMPROVEMENTS AS PERMITTED BY  SUBDIVISION  NINE
 OF  THIS  SECTION;  OR  (3) RESTORATION OF ACQUIRED REAL PROPERTY TO ITS
 NATURAL STATE INCLUDING THE DEMOLITION OF EXISTING BUILDINGS AND  STRUC-
 TURES.
   (B)  IN  THE CASE OF INTERESTS OR RIGHTS IN REAL PROPERTY ACQUIRED FOR
 HISTORIC PRESERVATION PURPOSES, FUNDS MAY BE EXPENDED FOR  THE  RESTORA-
 TION,   REHABILITATION,  OR  REPLACEMENT  OF  BUILDINGS  AND  STRUCTURES
 CONSISTENT WITH ACCEPTED STANDARDS FOR HISTORIC PRESERVATION.
   (C) EXPENSES RELATED TO THE CUSTOMARY  OPERATION  AND  MAINTENANCE  OF
 ACQUIRED  INTERESTS  OR  RIGHTS  IN REAL PROPERTY SHALL NOT BE PERMITTED
 FROM THE MANAGEMENT AND STEWARDSHIP PORTION OF THE FUND, EXCEPT THAT  IN
 THE  CASE  OF  HISTORIC  PROPERTIES,  WHERE THE TOWN HAS ENTERED INTO AN
 AGREEMENT WITH A NOT-FOR PROFIT CORPORATION FOR THE MANAGEMENT  OF  SUCH
 PROPERTIES AS PERMITTED BY SUBDIVISION NINE OF THIS SECTION, UP TO TWEN-
 TY (20) PERCENT OF THE MANAGEMENT AND STEWARDSHIP PORTION OF THE FUND OR
 TWO  (2)  PERCENT  OF THE TOTAL ANNUAL REVENUE OF THE FUND, MAY BE DEDI-
 CATED TO THE OPERATION AND MAINTENANCE OF STEWARDSHIP PROPERTIES MANAGED
 A. 9943--A                          5
 
 BY SUCH CORPORATIONS.  WHERE A TOWN ENTERS INTO  AN  AGREEMENT  FOR  THE
 MANAGEMENT OF AN HISTORIC PROPERTY WITH A NOT-FOR-PROFIT CORPORATION AND
 THE  TOWN  ALLOCATES  MANAGEMENT AND STEWARDSHIP FUNDS FOR THE OPERATION
 AND  MAINTENANCE OF SUCH HISTORIC PROPERTY, SAID CORPORATION SHALL ANNU-
 ALLY PROVIDE FOR A FULL ACCOUNTING OF SUCH FUNDS TO THE TOWN BOARD.
   (D) ANY PROJECT FUNDED PURSUANT TO THIS SUBDIVISION, EXCEPT  OPERATION
 AND  MAINTENANCE  EXPENSES  PERMITTED  PURSUANT TO PARAGRAPH (C) OF THIS
 SUBDIVISION, MUST HAVE A USEFUL LIFE OF FIVE YEARS OR MORE UNDER SECTION
 11.00 OF THE LOCAL FINANCE LAW.
   (E) ANY EXPENDITURE FROM THE  FUND  FOR  A  PURPOSE  OTHER  THAN  THAT
 PERMITTED, HEREIN, SHALL BE DEEMED TO BE PROHIBITED.
   §  5. Subdivision 11 of section 64-e of the town law is REPEALED and a
 new subdivision 11 is added to read as follows:
   11. NOTWITHSTANDING ANY PROVISION OF LAW TO THE  CONTRARY,  TOWNS  MAY
 ENTER  INTO  INTERMUNICIPAL AGREEMENTS PURSUANT TO ARTICLE FIVE-G OF THE
 GENERAL MUNICIPAL LAW FOR THE FOLLOWING PURPOSES:
   (A) TO JOINTLY ACQUIRE INTERESTS OR RIGHTS IN REAL PROPERTY,  CONSIST-
 ENT  WITH  THE  PURPOSES  OF THIS SECTION, WHERE THE ACQUISITION OF SUCH
 INTERESTS OR RIGHTS PROMOTES A REGIONAL PUBLIC BENEFIT FOR TWO  OR  MORE
 TOWNS PURSUANT TO A REGIONAL PLAN;
   (B) TO PROVIDE FOR AN INDEPENDENT FINANCIAL AUDIT OF EACH TOWN'S FUND;
 AND
   (C)  TO  HIRE  EMPLOYEES NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS
 SECTION.
   § 6. Section 64-e of the town law is amended by adding a new  subdivi-
 sion 14 to read as follows:
   14.  (A)  THE TOWNS IN THE PECONIC BAY REGION SHALL JOINTLY ESTABLISH,
 BY INTERMUNICIPAL AGREEMENT, THE OFFICE OF REGIONAL COMMUNITY  PRESERVA-
 TION FUND COUNSEL TO RENDER LEGAL OPINIONS AND INTERPRETATIONS TO FACIL-
 ITATE  THE  EFFICIENT AND CONSISTENT ADMINISTRATION OF THE FUNDS CREATED
 PURSUANT TO THIS SECTION. ALL SUCH OPINIONS AND INTERPRETATIONS RENDERED
 SHALL BE PUBLISHED ON EACH TOWN'S OFFICIAL WEBSITE AND SHALL  BE  AVAIL-
 ABLE  TO  THE  PUBLIC AS A PUBLIC RECORD UNDER ARTICLE SIX OF THE PUBLIC
 OFFICERS LAW.
   (B) THE TOWNS IN THE PECONIC BAY REGION SHALL  JOINTLY  ESTABLISH,  BY
 INTERMUNICIPAL  AGREEMENT,  THE PECONIC BAY REGION ADVISORY COMMITTEE TO
 ADVISE TOWN BOARDS REGARDING POLICY AND ADMINISTRATIVE  ISSUES  RELATING
 TO  FUNDS  ESTABLISHED  PURSUANT  TO  THIS  SECTION. THE COMMITTEE SHALL
 CONSIST OF ELEVEN (11) MEMBERS. THE  MEMBERS  SHALL  INCLUDE  EACH  TOWN
 SUPERVISOR  OR  DESIGNEE,  A  REPRESENTATIVE OF VILLAGE GOVERNMENT TO BE
 JOINTLY SELECTED BY THE VILLAGES IN THE PECONIC BAY REGION AND FIVE  (5)
 MEMBERS  TO BE SELECTED BY THE STATE LEGISLATIVE REPRESENTATIVES REPRES-
 ENTING THE PECONIC BAY REGION WITH EXPERTISE IN LAND PRESERVATION, ENVI-
 RONMENTAL PROTECTION, WATER QUALITY  PROTECTION,  AGRICULTURE,  HISTORIC
 PRESERVATION, OR PARKS AND RECREATION. THE COMMITTEE SHALL ELECT A CHAIR
 FROM  AMONG  ITS  MEMBERS.  SAID COMMITTEE SHALL MEET AT LEAST QUARTERLY
 EACH YEAR. THE OFFICE OF REGIONAL COMMUNITY  PRESERVATION  FUND  COUNSEL
 SHALL  ATTEND  THE MEETINGS OF THE COMMITTEE AND SHALL BE FURTHER AVAIL-
 ABLE TO THE COMMITTEE CHAIR FOR ADDITIONAL CONSULTATIONS. THE  COMMITTEE
 SHALL  BE EMPOWERED TO ESTABLISH THE RULES FOR ITS OPERATION, CONSISTENT
 WITH THIS SECTION.
   (C) THE OFFICE AND COMMITTEE REQUIRED TO BE  ESTABLISHED  PURSUANT  TO
 THIS  SUBDIVISION  SHALL  BE IMPLEMENTED NO LATER THAN NINETY DAYS AFTER
 THE EFFECTIVE DATE OF THIS SUBDIVISION.
   § 7. This act shall take effect immediately.