S T A T E   O F   N E W   Y O R K
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                                  1470

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 2, 2009
                               ___________

Introduced  by  Sen.  SALAND -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government

AN ACT to amend the general municipal law  and  the  education  law,  in
  relation  to requiring the state to fund certain programs mandated for
  municipal corporations and school districts

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Legislative intent. State mandated programs, unlike local
service decisions, place local taxpayers  and  local  officials  in  the
position  of paying for services that they do not control. Increasingly,
however, the state has set local priorities and forced municipal  taxing
decisions  by  mandating services, programs, and standards. As a result,
many local governments and school districts  are  today  in  an  acutely
difficult fiscal situation.
  Thus,  in  order  to prevent irresponsible state actions which prevent
localities from making their own decisions,  and  which  force  unwanted
local  property  tax  increases,  it  is  necessary to ensure that state
mandates will not be forced on localities and  school  districts  unless
they are adequately funded.
  S  2.  The general municipal law is amended by adding a new section 25
to read as follows:
  S 25. FUNDING OF MANDATES. 1. DEFINITIONS. AS USED  IN  THIS  SECTION,
THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS UNLESS THE CONTEXT
SHALL OTHERWISE REQUIRE:
  (A) "MANDATE" MEANS:
  (I)  ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM OR
REQUIRES A HIGHER LEVEL OF SERVICE  FOR  AN  EXISTING  PROGRAM  WHICH  A
MUNICIPAL CORPORATION IS REQUIRED TO PROVIDE; OR
  (II)  ANY  GENERAL  LAW  WHICH  GRANTS A NEW PROPERTY TAX EXEMPTION OR
INCREASES AN EXISTING PROPERTY TAX EXEMPTION WHICH THE MUNICIPAL  CORPO-
RATION IS REQUIRED TO PROVIDE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07266-01-9
              

S. 1470                             2

  (B) "UNFUNDED MANDATE" SHALL MEAN:
  (I)  ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM OR
REQUIRES A HIGHER LEVEL OF SERVICE  FOR  AN  EXISTING  PROGRAM  WHICH  A
MUNICIPAL  CORPORATION IS REQUIRED TO PROVIDE AND WHICH RESULTS IN A NET
ADDITIONAL COST TO THE MUNICIPAL CORPORATION;
  (II) ANY ALTERATION IN FUNDING PROVIDED TO A MUNICIPAL CORPORATION FOR
THE PURPOSE OF DEFRAYING THE COSTS OF A PROGRAM WHICH IT IS REQUIRED  TO
PROVIDE,  THEREBY  RESULTING  IN  A NET ADDITIONAL COST TO THE MUNICIPAL
CORPORATION; OR
  (III) ANY GENERAL LAW WHICH GRANTS A NEW  PROPERTY  TAX  EXEMPTION  OR
INCREASES  AN EXISTING PROPERTY TAX EXEMPTION WHICH THE MUNICIPAL CORPO-
RATION IS REQUIRED TO PROVIDE, THEREBY RESULTING  IN  A  NET  ADDITIONAL
COST TO THE MUNICIPAL CORPORATION.
  (C)  "NET  ADDITIONAL COST" MEANS THE COST OR COSTS INCURRED OR ANTIC-
IPATED TO BE INCURRED WITHIN A ONE YEAR PERIOD BY A LOCAL GOVERNMENT  IN
PERFORMING  OR  ADMINISTERING  A MANDATE AFTER SUBTRACTING THEREFROM ANY
REVENUES RECEIVED OR RECEIVABLE BY THE LOCAL GOVERNMENT  ON  ACCOUNT  OF
THE MANDATED PROGRAM OR SERVICE, INCLUDING BUT NOT LIMITED TO:
  (I) FEES CHARGED TO THE RECIPIENTS OF THE MANDATED PROGRAM OR SERVICE;
  (II)  STATE  OR  FEDERAL  AID  PAID  SPECIFICALLY  OR CATEGORICALLY IN
CONNECTION WITH THE PROGRAM OR SERVICE; AND
  (III) AN OFFSETTING SAVINGS RESULTING FROM THE  DIMINUTION  OR  ELIMI-
NATION  OF  ANY  OTHER  PROGRAM  OR SERVICE DIRECTLY ATTRIBUTABLE TO THE
PERFORMANCE OR ADMINISTRATION OF THE MANDATED PROGRAM.
  2. FUNDING OF  MUNICIPAL  CORPORATION  MANDATES.  NOTWITHSTANDING  ANY
OTHER  PROVISION  OF  LAW,  NO  UNFUNDED  MANDATE SHALL BE ENACTED WHICH
CREATES AN ANNUAL NET ADDITIONAL COST TO ANY  MUNICIPAL  CORPORATION  IN
EXCESS  OF  TEN  THOUSAND  DOLLARS OR AN AGGREGATE ANNUAL NET ADDITIONAL
COST TO ALL MUNICIPAL CORPORATIONS IN EXCESS OF ONE MILLION DOLLARS.
  3.  EXEMPTIONS  TO  THE  FUNDING  OF  MUNICIPAL  CORPORATION  MANDATES
REQUIREMENT.  (A)  THE  STATE  SHALL  NOT BE REQUIRED TO FUND ANY NEW OR
EXPANDED PROGRAMS IF:
  (I) THE MANDATE IS REQUIRED BY A COURT ORDER OR JUDGMENT;
  (II) THE MANDATE IS PROVIDED AT THE OPTION  OF  THE  LOCAL  GOVERNMENT
UNDER  A  LAW, REGULATION, RULE, OR ORDER THAT IS PERMISSIVE RATHER THAN
MANDATORY;
  (III) THE MANDATE RESULTS FROM THE PASSAGE  OF  A  HOME  RULE  MESSAGE
WHEREBY  A  LOCAL GOVERNMENT REQUESTS AUTHORITY TO IMPLEMENT THE PROGRAM
OR SERVICE SPECIFIED IN THE STATUTE, AND THE STATUTE IMPOSES COSTS  ONLY
UPON  THAT  LOCAL  GOVERNMENT WHICH REQUESTS THE AUTHORITY TO IMPOSE THE
PROGRAM OR SERVICE;
  (IV) THE MANDATE IS REQUIRED BY, OR ARISES FROM, AN EXECUTIVE ORDER OF
THE GOVERNOR EXERCISING HIS OR HER EMERGENCY POWERS; OR
  (V) THE MANDATE IS REQUIRED BY STATUTE OR EXECUTIVE ORDER THAT  IMPLE-
MENTS A FEDERAL LAW OR REGULATION AND RESULTS FROM COSTS MANDATED BY THE
FEDERAL GOVERNMENT TO BE BORNE AT THE LOCAL LEVEL, UNLESS THE STATUTE OR
EXECUTIVE  ORDER RESULTS IN COSTS WHICH EXCEED THE COSTS MANDATED BY THE
FEDERAL GOVERNMENT.
  (B) EACH ACT ESTABLISHING A MANDATE SHALL PROVIDE THAT  THE  EFFECTIVE
DATE  OF  ANY  SUCH  MANDATE  IMPOSED ON MUNICIPAL CORPORATIONS SHALL BE
CONSISTENT WITH THE NEEDS OF THE STATE  AND  MUNICIPAL  CORPORATIONS  TO
PLAN  IMPLEMENTATION  THEREOF  AND  CONSISTENT  WITH THE AVAILABILITY OF
REQUIRED FUNDS.
  S 3. The education law is amended by adding a new  section  1527-a  to
read as follows:

S. 1470                             3

  S  1527-A.  FUNDING OF MANDATES IMPOSED ON SCHOOL DISTRICTS. 1.  DEFI-
NITIONS. AS USED IN THIS SECTION, THE FOLLOWING  TERMS  SHALL  HAVE  THE
FOLLOWING MEANINGS UNLESS THE CONTEXT SHALL OTHERWISE REQUIRE:
  (A) "MANDATE" MEANS:
  (I)  ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM OR
REQUIRES A HIGHER LEVEL OF SERVICE  FOR  AN  EXISTING  PROGRAM  WHICH  A
SCHOOL  DISTRICT  ORGANIZED  EITHER  BY  SPECIAL LAWS OR PURSUANT TO THE
PROVISIONS OF A GENERAL LAW, IS REQUIRED TO PROVIDE; OR
  (II) ANY GENERAL LAW WHICH GRANTS A  NEW  PROPERTY  TAX  EXEMPTION  OR
INCREASES  AN  EXISTING  PROPERTY  TAX  EXEMPTION  WHICH ANY SUCH SCHOOL
DISTRICT IS REQUIRED TO PROVIDE.
  (B) "UNFUNDED MANDATE" SHALL MEAN:
  (I) ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM  OR
REQUIRES  A  HIGHER  LEVEL  OF SERVICE FOR AN EXISTING PROGRAM WHICH ANY
SUCH SCHOOL DISTRICT IS REQUIRED TO PROVIDE AND WHICH RESULTS IN  A  NET
ADDITIONAL COST TO SUCH SCHOOL DISTRICT;
  (II)  ANY  ALTERATION  IN FUNDING PROVIDED TO ANY SUCH SCHOOL DISTRICT
FOR THE PURPOSE OF DEFRAYING THE COSTS OF A PROGRAM WHICH IT IS REQUIRED
TO PROVIDE, THEREBY RESULTING IN A NET ADDITIONAL COST  TO  SUCH  SCHOOL
DISTRICT; OR
  (III)  ANY  GENERAL  LAW  WHICH GRANTS A NEW PROPERTY TAX EXEMPTION OR
INCREASES AN EXISTING PROPERTY  TAX  EXEMPTION  WHICH  ANY  SUCH  SCHOOL
DISTRICT  IS  REQUIRED TO PROVIDE, THEREBY RESULTING IN A NET ADDITIONAL
COST TO SUCH SCHOOL DISTRICT.
  (C) "NET ADDITIONAL COST" MEANS THE COST OR COSTS INCURRED  OR  ANTIC-
IPATED  TO  BE INCURRED WITHIN A ONE YEAR PERIOD BY A SCHOOL DISTRICT IN
PERFORMING OR ADMINISTERING A MANDATE AFTER  SUBTRACTING  THEREFROM  ANY
REVENUES RECEIVED OR RECEIVABLE BY THE SCHOOL DISTRICT ON ACCOUNT OF THE
MANDATED PROGRAM OR SERVICE, INCLUDING BUT NOT LIMITED TO:
  (I) FEES CHARGED TO THE RECIPIENTS OF THE MANDATED PROGRAM OR SERVICE;
  (II)  STATE  OR  FEDERAL  AID  PAID  SPECIFICALLY  OR CATEGORICALLY IN
CONNECTION WITH THE PROGRAM OR SERVICE; AND
  (III) AN OFFSETTING SAVINGS RESULTING FROM THE  DIMINUTION  OR  ELIMI-
NATION  OF  ANY  OTHER  PROGRAM  OR SERVICE DIRECTLY ATTRIBUTABLE TO THE
PERFORMANCE OR ADMINISTRATION OF THE MANDATED PROGRAM.
  2. FUNDING OF SCHOOL  DISTRICT  MANDATES.  NOTWITHSTANDING  ANY  OTHER
PROVISION  OF LAW, NO UNFUNDED MANDATE SHALL BE ENACTED WHICH CREATES AN
ANNUAL NET ADDITIONAL COST TO ANY SCHOOL DISTRICT IN EXCESS OF TEN THOU-
SAND DOLLARS OR AN AGGREGATE ANNUAL NET ADDITIONAL COST  TO  ALL  SCHOOL
DISTRICTS IN EXCESS OF ONE MILLION DOLLARS.
  3.  EXEMPTIONS TO THE FUNDING OF SCHOOL DISTRICT MANDATES REQUIREMENT.
(A) THE STATE SHALL NOT BE REQUIRED TO FUND ANY NEW OR EXPANDED PROGRAMS
FOR SCHOOL DISTRICTS IF:
  (I) THE MANDATE IS REQUIRED BY A COURT ORDER OR JUDGMENT;
  (II) THE MANDATE IS PROVIDED AT THE  OPTION  OF  THE  SCHOOL  DISTRICT
UNDER  A  LAW, REGULATION, RULE, OR ORDER THAT IS PERMISSIVE RATHER THAN
MANDATORY;
  (III) THE MANDATE RESULTS FROM THE PASSAGE  OF  A  HOME  RULE  MESSAGE
WHEREBY A SCHOOL DISTRICT REQUESTS AUTHORITY TO IMPLEMENT THE PROGRAM OR
SERVICE  SPECIFIED  IN  THE  STATUTE, AND THE STATUTE IMPOSES COSTS ONLY
UPON THAT SCHOOL DISTRICT WHICH REQUESTS THE  AUTHORITY  TO  IMPOSE  THE
PROGRAM OR SERVICE;
  (IV) THE MANDATE IS REQUIRED BY, OR ARISES FROM, AN EXECUTIVE ORDER OF
THE GOVERNOR EXERCISING HIS OR HER EMERGENCY POWERS; OR
  (V)  THE MANDATE IS REQUIRED BY STATUTE OR EXECUTIVE ORDER THAT IMPLE-
MENTS A FEDERAL LAW OR REGULATION AND RESULTS FROM COSTS MANDATED BY THE

S. 1470                             4

FEDERAL GOVERNMENT TO BE BORNE AT THE LOCAL LEVEL, UNLESS THE STATUTE OR
EXECUTIVE ORDER RESULTS IN COSTS WHICH EXCEED THE COSTS MANDATED BY  THE
FEDERAL GOVERNMENT.
  (B)  EACH  ACT ESTABLISHING A MANDATE SHALL PROVIDE THAT THE EFFECTIVE
DATE OF ANY SUCH MANDATE IMPOSED ON SCHOOL DISTRICTS SHALL BE CONSISTENT
WITH THE NEEDS OF THE STATE AND SCHOOL DISTRICTS TO PLAN  IMPLEMENTATION
THEREOF, AND ALSO CONSISTENT WITH THE AVAILABILITY OF REQUIRED FUNDS.
  S  4.  This act shall take effect April 1, 2010 and shall apply to any
general or special law imposing mandates on  municipal  corporations  or
school districts enacted on or after such effective date.