BILL NUMBER: S2452

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the public authorities law, in relation to the New York
city water board

 
PURPOSE OR GENERAL IDEA OF BILL:

The bill addresses an issue that has adversely affected many non-profit
institutions in New York City. New York City has long held that munici-
pal levies for water and sewer charges are not taxes, but at various
times many non-profit institutions in New York City have enjoyed
exemptions from water and sewer charges. The first such exemption was
granted in 1887, when the state Legislature enacted Chapter 969 of the
Laws of 1887, prospectively exempting hospitals, orphan asylums, and
homes for the aged from the payment of "water rents to the City of New
York". New York Courts have long held that water and sewer charges are
not taxes. The 1887 law effectively released certain non-profit insti-
tutions from the payment of water and sewer charges. By 1970 the act had
been amended twelve times to exempt more classes of nonprofit organiza-
tions from payment of water and sewer charges.
              

 
SUMMARY OF PROVISIONS:

This bill relates to the water board's power to fix, revise, charge and
Collect, and enforce payment.

 
JUSTIFICATION:

It has long been recognized that non-profit institutions render impor-
tant services to New York City. They are subsidized by exemption from
real property taxes. This is particularly true in the case of "Safety
Net Hospitals" located in New York City. If they do not survive, however
tenuous their financial situation, government, particularly the New York
City Health & Hospitals Corporation would be forced to assume a much
greater share of providing health care services. The New York City Water
Board, .which is responsible for setting water and sewer rates in New
York City, determines water charges based on the amount of water that
flows through water meters required to be installed in all buildings in
New York City. Prior to 1982 New City did not require water meters.
After thirty-six years the City has made tremendous progress. After
undertaking the largest universal metering conversion program in his ry,
the City is fully metered. As with any large government undertaking,
accompanied by constant revision of rules & procedures the City's
efforts have not been without problems. Rules and regulations were
constantly evolving. There was a period when inspections were not done
and the City agency responsible for enforcement witnessed personnel
changes and relocations. Many property owners, Safety Net Hospitals
among them, attempted to comply with shifting landscape while simply
trying to stay solvent. Now these important institution are being under-
ly burdened by charges that may not be accurate and which the Water
Board has limited the time period in which they may seek redress. The
Water Board. has passed regulations which shortens the time for chal-
lenging erroneous bills to a period that is shorter that the time that a
civil litigant would be allowed to seek redress under the New York Civil
Practice Laws & Rules. This legislation will ensure that after 30 years

of transitional issues, institutions that undertook efforts to comply
with the Water Board Rules and Regulations will not be penalized.

 
PRIOR LEGISLATIVE HISTORY:

2022: S5700

New Bill in 2019.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be Determined.

 
EFFECTIVE DATE:
Immediately.