senate Bill S239

Extends powers of municipal corporations to acquire public utilities by the power of eminent domain

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Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 07 / Jan / 2009
    • REFERRED TO LOCAL GOVERNMENT
  • 06 / Jan / 2010
    • REFERRED TO LOCAL GOVERNMENT

Summary

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Bill Details

See Assembly Version of this Bill:
A339
Versions:
S239
Legislative Cycle:
2009-2010
Current Committee:
Senate Local Government
Law Section:
General Municipal Law

Sponsor Memo

BILL NUMBER: S239

TITLE OF BILL :
An act to amend the general municipal law, in relation to the
acquisition of property by eminent domain


PURPOSE :
To promote competition in the electric power industry by reducing the
risk to the acquisition of private utility property by a municipal
power agency.

SUMMARY OF PROVISIONS :
Adds a new ยง360-a to the General Municipal Law.

JUSTIFICATION :
All levels of government are now making efforts to promote competition
in the once monopolistic world of the electric power industry. Once
source of possible completion on the retail level are municipal power
agencies. Municipal power has been a cost effective option in many
parts of New York State.

However, current law relating to the eminent domain procedure law has
had a chilling impact on municipal power. Specifically, a municipal
power agency must first take title to any private utility property it
may condemn, without knowing its value. Given the great uncertainty in
the judicial process as to how such property should be valued, this
process has had a very chilling impact on municipal power initiatives.

In the case of the Long Island Power Authority and LILCO, eminent
domain procedures were set up quite differently. LIPA need not make a
final decision on the acquisition of LILCO's assets, until their value
has been determined. Then LIPA can proceed or abandon the effort,
based upon judicial evaluation.

LEGISLATIVE HISTORY :
2007-08, S.655; 2005-06, S.1474; 2003-04, S.826; 2001-02, S.2085;
1999-00, S.1625; 1997-98, S.1400; 1995-96, S.6029.

FISCAL IMPLICATIONS :
None.

EFFECTIVE DATE :
This act shall take effect on the sixtieth day after it shall have
become a law.
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