senate Bill S5856

Signed by Governor

Enacts major components of legislation relating to real property tax levies, rent regulation, exemption from local taxation and mandate relief.

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Bill Status


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

  • 24 / Jun / 2011
    • REFERRED TO RULES
  • 24 / Jun / 2011
    • ORDERED TO THIRD READING CAL.1544
  • 24 / Jun / 2011
    • MESSAGE OF NECESSITY
  • 24 / Jun / 2011
    • PASSED SENATE
  • 24 / Jun / 2011
    • DELIVERED TO ASSEMBLY
  • 24 / Jun / 2011
    • REFERRED TO WAYS AND MEANS
  • 24 / Jun / 2011
    • SUBSTITUTED FOR A8518
  • 24 / Jun / 2011
    • ORDERED TO THIRD READING RULES CAL.629
  • 24 / Jun / 2011
    • RULING OF CHAIR ON POINT OF ORDER
  • 24 / Jun / 2011
    • MESSAGE OF NECESSITY - 3 DAY MESSAGE
  • 24 / Jun / 2011
    • PASSED ASSEMBLY
  • 24 / Jun / 2011
    • RETURNED TO SENATE
  • 24 / Jun / 2011
    • DELIVERED TO GOVERNOR
  • 24 / Jun / 2011
    • SIGNED CHAP.97

Summary

Enacts major components of legislation relating to real property tax levies, rent regulation, exemption from local taxation and mandate relief.

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Bill Details

See Assembly Version of this Bill:
A8518
Versions:
S5856
Legislative Cycle:
2011-2012
Law Section:
General Municipal Law
Laws Affected:
Amd Various Laws, generally

Sponsor Memo

BILL NUMBER:S5856

TITLE OF BILL:

An act
to amend the general municipal law and the
education law,
in
relation to establishing limits upon school
district and local government tax levies; and providing for the repeal
of such provisions upon expiration thereof (Part A);
to amend chapter 576 of the laws of 1974 amending the emergency housing
rent control law relating to the control of and stabilization of rent in
certain cases, the emergency housing rent control law, chapter 329 of the
laws of 1963 amending the emergency housing rent control law relating to
recontrol of rents in Albany, chapter 555 of the laws of 1982 amending
the general business law and the administrative code of the city of New
York relating to conversion of residential property to cooperative or
condominium ownership in the city of New York, chapter 402 of the laws
of 1983 amending the general business law relating to conversion of
rental residential property to cooperative or condominium ownership in
certain municipalities in the counties of Nassau, Westchester and
Rockland and the rent regulation reform act of 1997, in relation to
extending the effectiveness thereof;
to amend the administrative code of the city of New York,
the emergency
tenant protection act of nineteen seventy-four and the emergency housing
rent control law,
in relation to limiting
rent increases after vacancy of a housing accommodation
and the adjustment of maximum allowable
rent based on apartment improvements;
to amend the emergency tenant protection act of nineteen seventy-four,
the emergency housing rent control law, the administrative code of the
city of New York and the tax law, in relation to deregulation
thresholds;
to amend the real property tax law, in relation to tax exemption for new
multiple dwellings and
exemption of certain
new or substantially rehabilitated multiple dwellings from local
taxation
and to amend the tax law, in relation to verification of income
(Part B);
to amend the state finance law, in relation to providing certain
centralized services to political subdivisions and extending the
authority of the commissioner of general services to aggregate purchases
of energy for state agencies and political subdivisions; to amend the
general municipal law, in relation to purchasing information
technology and telecommunications;
to amend the county law, in relation to contracts for services;
to amend the general municipal law, in relation to certain federal
contracts;
to amend the municipal home rule law,
in relation to filing and publication of local laws;
and providing for the repeal of certain provisions upon the
expiration thereof (Subpart A);
to amend the general municipal law and the highway law, in


relation to mutual aid (Subpart B);
to amend the general municipal law, in relation to
apportioning the expenses of police department members in attending
police training schools;
to amend the criminal procedure law, in relation to
the prosecution of the offense of identity theft;
to amend the family court act, in relation to inter-county probation;
to amend the mental hygiene law, in relation to payment of costs for
prosecution of inmate-patients; and
to repeal section 207-m of the general municipal law relating to salary
increases for heads of police departments of municipalities, districts
or authorities
(Subpart C);
to amend the general municipal law,
in relation to
filing requirements
for municipalities regarding urban renewal plans and creation of urban
renewal agencies and authorities
(Subpart D);
to amend the social services law, in relation to
the use of debit or credit cards for child care assistance payments;
and to amend the social services law, in relation to the
length of licenses to board children,
training of child protective service caseworkers,
services plans, funding for
children and family services, district-wide child welfare services
plans, and non-residential services for victims of domestic violence
(Subpart E);
to amend the education law, in relation
to census reporting;
to amend the education law, in relation to transportation of children
receiving special education services;
to amend the education law, in relation
to funding of certain capital projects and auditing of claims; to amend
the education law, in relation to
establishing a shared superintendent program; and to amend the education
law, in relation to cost-sharing between districts;
and to amend the general municipal law, in relation to accounts of
officers to be examined; and providing for the repeal of certain
provisions upon expiration thereof
(Subpart F);
to amend the
mental hygiene law and the social services law,
in relation to the implementation of medical support
provisions
(Subpart G); and
to amend the state administrative procedure act, in relation to
alternate methods for implementing regulatory mandates;
and
to amend the executive law, in relation to creation of the
mandate relief council and providing for the
expiration
of such provisions (Subpart H) (Part C)

Purpose:


This bill would: (1) amend the General Municipal Law and the Education
Law, in relation to establishing limits upon school district and
local government tax levies; (2) strengthen and extend the rent
regulation laws until June 15, 2015; and (3) enact into law major
components of legislation necessary to effectuate mandate relief from
statutory and regulatory mandates on local governments.

Part A

Summary of Provisions:

Section 1 of Part A of the bill would add a new § 3-c to the General
Municipal Law to establish a real property tax levy limit for local
governments, except the city of New York and any counties contained
therein. Under the property tax levy limit:

(1) Beginning with the fiscal year that begins in 2012, no local
government would be authorized to increase its property tax levy by
more than 2 percent or the rate of inflation, whichever is less;

(2) A local government would include counties, towns, cities,
villages, fire districts and all special districts;

(3) A local government would be authorized to exceed the tax levy
limit only if the governing body enacts, by a sixty percent vote, a
local law, or for a special district or fire district, a resolution
by a sixty percent vote, overriding the tax levy limit;

(4) The levy limit would have limited exceptions including:

i. Judgments or court orders arising out of tort actions that exceed
five percent of the local government's levy;

ii. Limited growth in pension costs. Where the system average
actuarial contribution rate increases by more than two percentage
points from the previous year, the amount of contributions above two
percentage points would be excluded from the limit;

(5) The local government would be required to calculate the levy limit
and submit relevant data to the State Comptroller for potential
review and audit;

(6) The State Comptroller would be required to determine the tax levy
limit for local governments that are consolidated or dissolved or
where local government functions are transferred to another local
government;

(7) Any excess levy funds that are collected due to error would be
held in reserve.

(8) Adjustments to the limit would include:

i. a local government would be allowed to carryover to the current
fiscal year the amount by which the tax levy for the prior fiscal
year was below the levy limit for that year, but such carryover may
not exceed 1.5 percent of said levy limit; and


ii. a local government would be allowed to adjust the levy limit
upward, based on a growth factor calculated by the commissioner of
tax and finance, to account for physical or quantity growth in the
property tax base;

Section 2 of Part A of the bill would add a new 2023-a to the
Education Law to establish a real property tax levy limit for school
districts upon school districts, other than school districts with a
population of 125,000 or more (the "Big 5" school districts). Under
the school district real property tax cap:

(1) Beginning with the fiscal year that begins in 2012, no school
district would be authorized to increase its property tax levy by
more than 2 percent or the rate of inflation, whichever is less;

(2) If any school district that is subject to a tax levy limit
proposes an
annual budget that would exceed the school district's tax levy limit,
then the proposed budget must be approved by 60 percent of the vote.

(3) If the proposed budget requires a tax levy that does not exceed
the district's tax levy limit, then a majority vote is required for
approval. Any trustee or board of education separate proposition or
voter proposition that would cause the school district's tax levy
limit to be exceeded must be approved by 60 percent of the vote;

(4) School districts would calculate the tax levy limit and submit the
information to the Commissioner of Education, State Comptroller and
Commissioner of Taxation and Finance no later than March 1st of each
year.

(5) The tax levy limit would have the following limited exceptions
including:

i. A tax levy necessary to support expenditures resulting from court
orders or judgments against the school district arising out of tort
actions for an amount over five percent of the total taxes levied in
the prior school year;

ii. Limited growth in pension costs. Expenditures reflecting the
contributions to the New York state and local employees' retirement
system and New York state teachers' retirement system caused by the
growth in the system average actuarial contribution rate above two
percentage points; and

iii. Voter-approved capital expenditures.

(6) A school district would be allowed to adjust the levy limit
upward, based on a growth factor calculated by the commissioner of
tax and finance, to account for physical or quantity growth in the
property tax base;

(7) The Commissioner of Education would determine the tax levy limits
for school districts that are consolidated or reorganized;

(8) Any excess levy funds that are collected due to clerical or
technical errors would be held in reserve;


(9) If the budget is defeated after two presentations to the voters,
or after one defeat where the school district decides not to resubmit
a budget to the voters, then the district would be required to adopt
a budget with a tax levy less than or equal to that of the prior year;

Section 3 of Part A of the bill would amend Education Law section 2023
to conform with the requirement that a contingency budget would only
authorize a tax levy less than or equal to that of the prior year.

Sections 4 and 5 would amend Education Law §§ 1608 and 1716 to require
school districts to include information about the applicable tax levy
limit on their property tax report cards.

Sections 6 and 8 would amend Education Law §§ 2008 and 2035 to conform
voter propositions with the requirement that if the proposition would
cause the school district's tax levy limit to be exceeded, then it
must be approved by 60 percent of the vote.

Section 7 would amend Education Law § 2022 to include conforming
changes regarding school budget votes, trustee or board of education
separate propositions, voter propositions and to require that
information about the applicable tax levy limit be included in the
school budget notice.

Section 9 would amend Education Law § 2601-a to conform school budget
and proposition votes in small city school districts with the tax
levy limit requirements and process.

Section 10 would amend Education Law § 3602 to include a technical
conforming amendment relating to a contingency budgets reference.

Section 11 would amend Education Law § 3635 to clarify that voter
approval for transportation mileage changes is maintained.

Section 12 of the bill would clarify that nothing in this act would
impair the powers or duties of a control board, interim finance
authority or fiscal stability authority.

Section 13 of the bill would provide for the effective date of the bill.

Existing Law:

GML § 3-b, places a limitation on real estate taxes in New York City,
and Article 8, § 10 sets certain limitations on property tax rates.
Under existing law, voters outside of the Big 5 school
districts--whose budgets are not voted on independently because the
budgets of the Big 5 are included in the budgets of their cities-can
approve a school district budget at the district's annual meeting
(generally the 3rd Tuesday in May). If a school budget is defeated,
the district can adopt a contingency budget or call a special
district meeting (generally the 3rd Tuesday in June) to re-present
the defeated budget or to present an amended budget. In the event no
budget is approved by voters, the district must adopt a contingency
budget.

Prior Legislative History:


While several of the matters covered by this bill have been the
subject matter of bills by members of the Assembly, Senate, or the
Executive, this is a new bill.

Statement in Support:

New York property owners pay among the highest taxes in the nation.
When you combine State and local taxes, New York has the second
highest property taxes in the nation. The median U.S. property tax
paid is $1,917 and in New York it is $3,755--96 percent higher than
the national median. Moreover, New York has the highest local taxes
in America as a percentage of personal income--79 percent above the
national average. Local property tax levies in New York grew by 73
percent from 1998 to 2008, more than twice the rate of inflation
during that period. And New York--especially Upstate New
York-continues to lose population and jobs at a rate greater than the
national average, while taxes continue to rise.

New York property taxes have long been a problem. From 2006-2008, when
property taxes were measured as a percentage of home value, the top
sixteen counties in the nation were all in New York State. Local
property taxes are rising at rate much faster than inflation--for the
five years from 2002 to 2007, inflation was at 2.9 percent annually,
whereas property tax revenues increased at higher rates for every
major class of local governments.

This bill is a comprehensive property tax cap that will help end the
devastating impact of property taxes on homeowners throughout New
York. The tax cap will apply to all school districts and local
governments (i.e. counties, towns, villages and special districts)
except for New York City, the counties within New York City, and the
Big Five school districts. It will be set at the rate of inflation or
2 percent, whichever is less. For local governments, any property tax
levy increase above the inflation rate would be prohibited, unless
endorsed both 2/3 of the local governing board. For schools, any
property tax levy increase above the rate of inflation would be
prohibited, unless approved by 60% of the voters. This vote will be
part of their regular budget voting process and for other
municipalities and special districts, a referendum will not be
required. The cap will apply directly to independent special
districts and to town or county component special districts as part
of their parent municipalities' tax levies.

Only limited exceptions will be allowed for the cap, such as one-time
needs for large legal settlements or capital expenditures. Counties
will also be covered, but with appropriate exceptions for certain
state mandated social service programs.

Other states have property tax caps, including Massachusetts,
Illinois, California and Michigan. New Jersey was the most recent
state to enact a property tax cap.

Budget Implications:

This bill would have no direct fiscal implications for the State.

Effective Date:


This bill would take effect immediately and apply to the 2012-13
school year, provided that section 1, dealing with local governments,
would first apply to the fiscal year that begins in 2012, and
provided further that the act would remain in full force and effect
only so long as the laws providing for rent regulation and control
remain in effect.

PART B

Summary of Provisions:

Section 1 of the bill provides that the bill may be cited at "The Rent
Act of 2011".

Section 1-a of the bill amends the EHRCL relating to the control of
and stabilization of rent in certain cases to provide that such
provisions shall remain in effect until and including the twenty
third day of June 2015 so long as localities determine the existence
of a public emergency.

Section 2 of the bill would amend the EHRCL to provide that such
provisions shall remain in effect until and including June 23, 2015.

Section 3 of the bill would amend the EHRCL relating to recontrol of
rents in Albany to provide that such provisions shall remain in
effect until and including June 23, 2015.

Section 4 of the bill would amend the general business law and the
administrative code of the city of New York relating to conversion of
residential property to cooperative and condominium ownership in the
city of New York to provide that such provisions shall remain in
effect until and including June 23, 2015.

Section 5 of the bill would amend the general business law relating to
the conversion of rental residential property to cooperative and
condominium ownership in certain municipalities in the counties of
Nassau, Westchester and Rockland to provide that such provisions
shall remain in effect until and including June 23, 2015.

Section 6 of the bill would amend provisions of the rent regulation
reform act of 1997 to provide that such provisions shall continue
until and including June 23, 2015.

Section 7 of the bill would amend the RSL to provide that not more
than one vacancy increase may be added to the legal regulated rent in
any given year.

Section 8 of the bill would amend section 10(a-1) of the ETPA to
provide that not more than one vacancy increase could be added to the
legal regulated rent in any given year.

Section 9 of the bill would amend section 2(2)(n) of the EHRCL to
provide that after the effective date of this Act, the threshold rent
amount to deregulate a residential unit upon vacancy shall be two
thousand five hundred dollars.


Section 10 of the bill would amend section 5(a)13 of the ETPA to
provide that after the effective date of this Act, the threshold rent
amount to deregulate a residential unit upon vacancy shall be two
thousand five hundred dollars.

Section 11 of the bill would amend section 26-403e(k) of the RCL to
provide that after the effective date of this Act, the threshold rent
amount to deregulate a residential unit upon vacancy shall be two
thousand five hundred dollars.

Section 12 of the bill would amend section 26-504.2 of the RSL to
provide that after the effective date of this Act, the threshold rent
amount to deregulate a residential unit upon vacancy shall be two
thousand five hundred dollars.

Section 13 of the bill would amend section 10(a-2) of the ETPA to
conform the provisions which allow for deregulation where there is a
preferential rent to the same two thousand five hundred dollar level.

Section 14 of the bill would amend section 26-511(c)14 of the RSL to
conform the provisions which allow for deregulation where there is a
preferential rent to the same two thousand five hundred dollar level.

Section 15 of the bill would amend section 26-405g(1)(e) of the RCL
to provide an adjustment for a rent increase based upon individual
apartment improvements which shall be equal to one-sixtieth of the
total cost of the individual apartment improvements instead of
one-fortieth, for those buildings with more than thirty five housing
accommodations commencing on September 24, 2011.

Section 16 of the bill would amend Section 26-511(c)(13) of the RSL
to provide an adjustment for a rent increase based upon individual
apartment improvements which shall be equal to one-sixtieth of the
total cost of the individual apartment improvements instead of
one fortieth, for those buildings with more than thirty five housing
accommodations commencing on September 24, 2011.

Section 17 of the bill is intentionally omitted.

Section 18 of the bill would amend section 6d(1) of the ETPA to
provide an adjustment for a rent increase based upon individual
apartment improvements which shall be equal to one-sixtieth of the
total cost of the individual apartment improvements instead of
one-fortieth, for those buildings with more than thirty five housing
accommodations commencing on September 24, 2011.

Section 19 of the bill is intentionally omitted.

Section 20 of the bill is intentionally omitted.

Section 21 of the bill is intentionally omitted.

Section 22 of the bill is intentionally omitted.

Section 23 of the bill is intentionally omitted.

Section 24 of the bill is intentionally omitted.


Section 23 of the bill is intentionally omitted.

Section 24 of the bill is intentionally omitted.

Section 25 of the bill would amend section 4(4)(a)(v)5 of the EHRCL to
provide that for buildings with more than thirty-five housing
accommodations a rent increase based on individual apartment
improvements shall be computed on one-sixtieth, rather than
one-fortieth of their allowable costs on or after September 24, 2011.

Section 26 of the bill is intentionally omitted.

Section 27 of the bill is intentionally omitted.

Section 28 of the bill is intentionally omitted.

Section 29 of the bill would amend section 5(a)12 of the ETPA to
provide that effective with the next high rent/high income
deregulation cycle, the thresholds for such deregulation are
increased to the total annual household income for each of the two
preceding years of two hundred thousand dollars and the legal
regulated rent threshold to two thousand five hundred dollars.

Section 30 of the bill would amend section 5-a of the ETPA to define
the deregulation income and rent thresholds in conformance with the
description set forth in the section 29 above and amends the high
rent/high income deregulation procedures accordingly.

Section 31 of the bill would amend section 22(m) of the EHRCL to
provide that effective with the present high rent/high income
deregulation cycle that the thresholds for such deregulation are
increased to the total annual income for each of the two preceding
years of two hundred thousand dollars and the legal regulated rent
threshold to two thousand five hundred dollars.

Section 32 of the bill would amend section 2-a of the EHRCL define the
deregulation income and rent thresholds in conformance with the
description of those set forth in the section 31 above and would
amend the high rent/high income deregulation procedures accordingly.

Section 33 of the bill would amend Section 26-403e(2)(j) of the RCL to
modify the deregulation income and rent thresholds in conformance
with the amendments made in Section 34 of the bill.

Section 34 of the bill would amend Section 26-403.1 of the RCL to
define the deregulation income and rent thresholds in conformance
with the description of those set forth in section 31 of the bill and
would amend the high rent/high income deregulation procedure
accordingly.

Section 35 of the bill would amend section 26-504.1 of the RSL to
modify the deregulation income and rent thresholds to conform to the
amendments contained in Section 36 of the bill.

Section 36 of the bill would amend Section 26-504.3 of the RSL to
define the deregulation income and rent thresholds in conformance
with the description of those set forth in section 29 of the bill and


would amend the high rent/high income deregulation procedure
accordingly.

Section 37 of the bill would amend subdivision (3)(b) of Section 171-b
of the Tax Law to enable the New York State Department of Taxation
and Finance to provide DHCR with information to effectuate the high
income deregulation provisions of this statute.

Section 38 of the bill would amend subparagraph (i) of
paragraph (a) of subdivision 2 of Section 421-a of the Real
Property Tax Law to extend the operative provisions of such law
through June 15, 2015 and further provide that for the period
January 1, 2007 through June 30, 2009 the construction period may be
extended for six years, although benefits will be granted only for
three years of construction.

Section 39 of the bill would amend clause (A) of subparagraph (ii) of
paragraph (a) of subdivision 2 of section 421-a of the Real Property
Tax Law to extend the operative provisions of such law through June 15,
2015 and further provide that for the period January 1, 2007 through
June 30, 2009 the construction period may be extended for six years,
although benefits will be granted only for three years of construction.

Section 40 of the bill would amend clause (A) of subparagraph (iii) of
paragraph (a) of subdivision 2 of section 421-a of the Real Property
Tax Law to extend the operative provisions of such law through June 15,
2015 and further provide that for the period January 1, 2007
through June 30, 2009 the construction period may be extended for
six years, although benefits will be granted only for three years of
construction.

Section 41 of the bill would amend clause (A) of subparagraph (iv) of
paragraph (a) of subdivision 2 of section 421-a of the Real Property
Tax Law to extend the operative provisions of such law through 2015.

Section 42 of the bill would amend subparagraph (ii) of paragraph (c)
of subdivision 2 of section 421-a of the Real Property Tax Law to
extend the provisions of such law through June 15, 2015.

Section 43 of the bill adds a new Section 421-m to the Real Property
Tax Law which allows a city, town or village (Section 421-a or 421-c
are not applicable) by local law to provide
a real estate tax exemption for the construction or substantial
rehabilitation of multiple dwellings where at least twenty percent of
the units are affordable units.

Section 44 authorizes DHCR to promulgate regulations to implement and
enforce this act including any law renewed or continued by this Act
that it administers.

Section 45 provides for severability, if any provision if found to be
invalid.

Section 46 of the bill contains additional effective date provisions
relating to the continuation of an emergency requiring the regulation
of residential rents and evictions retroactive to June 24, 2011 and
to clarify that amendment to the provisions concerning high rent/high


income deregulation will not be used as the basis for technical
dismissals or defaults during the pending high income/high rent
deregulation cycle.

Existing Law:

Currently, the deregulation rent threshold for rent controlled and
rent stabilized units is $2000 per month. For high rent/high income
deregulation the household income must be equal or exceed $175,000
per year for two consecutive years. The rent threshold has been
unchanged since 1993 and the legislature decreased the income
threshold in 1997.

IAI's are presently calculated for all buildings subject to these laws
by adding one-fortieth of their cost to the rent. In addition, upon
vacancy, even if there is more than one vacancy for the apartment in
any given year, an owner is also entitled to an increase of twenty
percent over the previous legal rent for a two year lease. For a one
year lease, the increase of twenty percent is reduced by the
difference between the two and one year lease renewal guidelines
promulgated by the Rent Guidelines Board. An additional longevity
increase is added, consisting of six-tenths of one percent for each
year since the imposition of the last vacancy allowance, provided
there has been no such vacancy allowance within eight years.

Various rent regulatory protections, as well as certain provisions in
the General Business Law and the Administrative Code of the City of
New York relating to the conversion of residential real property to
cooperative or condominium ownership sunseted on June 23, 2011.

Section 421-a of the Real Property Tax Law expired on December 28, 2010.

Prior Legislative History:

While several of the matters covered by this bill have been the
subject matter of bills by members of the assembly, senate, or the
executive, this is a new bill.

Statement in Support

This legislation truly represents a sea change in providing the
protections necessary for over two million New Yorkers who call their
apartments "home". New York City in particular is
unique in its use of rental accommodations to house its citizens. This
housing stock is one of its aspects that give the City its unique
character and diversity.

The 2008 Housing Vacancy Survey conducted by New York City indicates
that 28% of rent stabilized units are occupied by households that are
below 125% of poverty level; that 21% of rent stabilized tenants are
paying 50% or more of their income for housing; and that 62% of rent
stabilized tenancies are families that make $50,000 a year or less.

The shortage of even more of these kinds of accommodations is the
basis of a housing emergency that forms the rationale for rent
regulations.


Because such emergency conditions have been subject to review and
re-appraisal, the legislature meets and periodically considers what
is good and necessary in such regulations for New York's residents.
However, for the last seventeen years, need for such sober and
studied analysis has instead become the victim of a political dynamic
where the very continuation of the system had to be "horse traded"
against reduction of even some of its most rudimentary core
protections.

Conventional wisdom was that such erosion had become an inevitable
fact of life. Conventional wisdom was wrong.

This bill reverses that trend with respect to deregulation and
provides for closing certain long term gaps in the rent regulatory
system.

The High Rent Vacancy and High Income/High Rent deregulation
provisions of New York State's rent regulatory schemes when first
enacted were intended to eliminate the protections of rent regulation
in specific narrow circumstances. The so-called "luxury decontrol"
thresholds, first introduced in 1993 and amended in 1997, currently
allow for the deregulation of vacant apartments when the regulated
rent reaches $2000 per month. Occupied units can be deregulated when
the regulated rent reaches $2000 per month and the tenants have an
income of $175,000 or more for two consecutive years. This structure
sought to provide the protections of rent regulation for ordinary
tenants while allowing for deregulation of high-rent "luxury"
apartments occupied by wealthier New Yorkers.

In the seventeen years since this "luxury decontrol" system was put in
place, the basic rents for rent stabilized apartments have increased
each year by the annual adjustment factors approved by the
appropriate Rent Guidelines Board. However, while rents have steadily
increased, the deregulation threshold has not changed. As a result,
more and more units are being decontrolled -leaving more and more
ordinary New Yorkers without the vital protections that the rent
regulation provides.

This legislation will, for the first time, increase the High Rent
Vacancy and High Rent/High Income deregulation threshold taking it
from that historical level of $2,000 per month to $2,500 per month.
This increase will restore the delicate balance between tenant
protections and appropriate deregulation that was struck when these
current decontrol laws were adopted.

Similarly, the income threshold will be increased above its present
$175,000 limit, but still below the $250,000 income threshold in
effect when the high rent/high income deregulation was originally
enacted. DHCR estimates that approximately 32,000 families in the
upcoming year will potentially not be subject to this process because
of this legislation.

The substantive modifications to laws governing individual apartment
improvements increases are also truly historic.

The downward modification of the IAI increase from 1/40th of the
allowable costs to 1/60th of the allowable costs, is the first


modification of this increase since the inception of Rent
Stabilization over forty years ago.

The modification is clearly appropriate. It tempers the need to assure
that apartments are improved and maintained against the upward spiral
of rents. It takes measure of the pressure created to install
increasingly elaborate improvements, more for the purpose of meeting
deregulation thresholds, than being responsive to the need for
upgrades. At the same time, retaining the present recoupment formula
for buildings (as that term is generally used for rent regulations
purposes) with thirty five units and below, recognizes the different
economic considerations attendant on owners maintaining smaller
property holdings. Because of this legislation DHCR estimates that
543,000, or 62% of all rent stabilized housing accommodations will
now be subject to lower increases for individual apartment
improvements.

DHCR is also further authorized to promulgate regulations for the
implementation and enforcement of these laws. Assuring the
appropriate oversight of these new provisions and those rent laws
continued by this Act is a significant responsibility and a
continuing challenge, but such challenges cannot ultimately stand in
the way of doing what is right.

The provisions limiting the automatic increases attendant upon vacancy
to only one vacancy in any given year is consistent with assuring
fair compensation for owners under the Rent Stabilization Law without
over-compensating owners for fortuitous vacancies not really
contemplated by the rent regulatory system.

The bill also provides needed incentives for new construction of
housing by extending and renewing the tax benefit program under
Section 421-a of the Real Property Tax Law which had expired without
renewal.

Further, in recognition of the difficult economic challenges related
to new construction, it provides an additional three years for owners
to place their buildings in service from the initial date of
commencement of construction; but without adding to the overall tax
benefit periods otherwise provided for under the 421-a program.

The addition of 421-m to the Real Property Tax Law is one more
incentive that communities that may not previously have had benefit
of such an exemption program, may now encourage the creation of more
affordable housing within their borders.

Budget Implications:

DHCR may need to add or re-allocate staff in assuring that the laws
renewed by this Act continue to be properly enforced and new
provisions implemented.

Effective Date:

This bill takes effect retroactively as of June 24, 2011.

PART C


Section 1 describes the contents of Part C.

Subpart A:

Sections 1 and 2 would amend State Finance Law ("SFL") § 97-g (3), (4)
& (5) to authorize the Office of General Services ("OGS") to provide
centralized services in the form of purchases of electricity to
political subdivisions, including school districts.

Section 3 is intentionally omitted.

Section 4 would amend General Municipal Law ("GML") § 103 by adding a
new section 1-b to authorize local governments, including school
districts, to directly purchase ("piggyback") from Federal General
Services Administration Schedule 70 (information technology and
telecommunications hardware, software and professional services).

Sections 5 and 6 would amend GML § 103 (3) and County Law § 408-a (2)
to authorize local governments to piggyback on county public works
contracts.

Section 7 would amend GML § 104 to authorize local governments,
including school districts, to directly purchase from federal General
Services Administration e-government and defense supply contracts.

Section 8 would amend Municipal Home Rule Law ("MRHL") § 27 (2) to
ease the signature requirements for the filing of local laws with the
Department of State.

Section 9 contains the respective effective dates for Subpart A.

Subpart B:

Section 1 would amend GML § 99-r to authorize local municipalities and
public authorities to exchange services, materials, equipment.

Section 2 would amend Highway Law § 10-c (4)(e) to increase the
competitive bidding threshold for Consolidated Local Street and
Highway Improvement Program ("CHIPS") work from $100,000 up to
$250,000 to expand the ability of municipalities to use their own
labor to perform CHIPS work.

Section 3 would amend GML § 102 to eliminate the requirement that
local governments collect and return deposits for copies of plans and
specifications.

Section 4 contains the respective effective dates for Subpart B.

Subpart C:

Section 1 would amend GML § 72-c to allow municipalities with
populations of 10,000 or more to also recover the costs of police
training from new municipal employers.

Section 2 repeal GML § 207-m to remove statutory salary requirements
for municipal chiefs of police.


Section 3 would amend CPL § 20.40 (4)(1) to alter the venue
requirements for identity theft crimes to allow one district attorney
to prosecute such crimes that occurs in multiple counties.

Section 4 would amend FCA § 176 to allow intrastate transfers of
people sentenced to interim probation supervision.

Section 5 would amend Mental Hygiene Law by adding a new section 29.28
to provide that the cost of prosecuting inmate patients shall be
borne by the state Department of Corrections and Community Supervision.

Section 6 contains the respective effective dates for Subpart C.

Subpart D:

Sections 1 through 3 would amend GML §§ 514 and 553 (1) & (2) to
eliminate unnecessary or duplicative requirements for filing of
certificates and plans with the Division of Housing and Community
Renewal.

Section 4 contains the respective effective dates for Subpart D.

Subpart E:

Section 1 would amend Social Services Law § 410-x to authorize
counties to make child care subsidy payments electronically.

Section 2 would amend SSL § 378(2) to extend the duration of a foster
boarding home license or certificate from one to two years.

Section 3 contains the respective effective dates for Subpart E.

Subpart F:

Sections 1 and 2 would amend EDUC §§ 3241(1) and 3242 to change the
required census of Pre-K children from annually to every two years.

Section 3 would amend EDUC § 3635 by adding a new subdivision (8) to
authorize schools boards in certain school districts to enact a
policy to provide student transportation based upon patterns of
actual ridership.

Section 4 would amend EDUC § 3602 (6)(e)(3)(b) to ease the school
building aid penalties for late filing of final cost reports.

Sections 5 through 20 would amend EDUC §§ 1604 (35),1709 (20-a), 1711
(2)(e), 1724 (1), 2503 (5), 2508 (5), 2523 (2), 2524 (1), 2525, 2526,
2527, 2554 (2-a), 2562 (2), 2566 (6), 2576 (1)(a), and 2580 (2) &
(4) to provide flexibility in claims auditing by allowing school
districts to establish the position of deputy claims auditor to act
in the absence of the appointed claims auditor and by allowing school
districts with 10,000 or more students to audit samples of claims.

Section 21 would amend the Education Law by adding a new section
1527-c to authorize up to three school districts with fewer than 1,000
students each to share a school superintendent.


Sections 22 and 23 would add a new subdivision 21-b to EDUC § 1604
and would amend EDUC § 1709 (25)(g) & (h) by adding a new subdivision
21-b to authorize school districts to provide regional transportation
services jointly with other districts or BOCES.

Section 24 would amend GML § 33 (2)(b) to authorize the Comptroller to
assess claims sampling methodologies as part of school district audits.

Section 25 would direct the Comptroller to review and make
recommendations regarding the effectiveness of allowing school
districts to use claims sampling methodologies.

Section 26 contains the respective effective dates for Subpart F.

Subpart G:

Section 1 would amend Mental Hygiene Law § 81.44(c)(1) to require the
guardian of an incapacitated person to give notice to the LDSS when
the incapacitated person dies.

Section 2 would amend Social Services Law § 458-b (4) to authorize
counties to make kinship guardianship payments electronically.

Section 3 contains the respective effective dates for Subpart G.

Subpart H:

Section 1 would amend State Administrative Procedure Act ("SAPA")
§204-a to ease the current process by which a local government can
petition for approval of an alternative to a regulatory mandate by: 1)
streamlining the content requirements for such petitions; 2) allowing
a local government petitioner to appeal a state agency decision to the
Mandate Relief Council; and 3) establishing a hearing process for
review of a state agency's determination to rescind approval of a
regulatory alternative.

Section 2 would amend the Executive Law by adding a new section 666 to
establish a combined Legislative and Executive Mandate Relief Council
charged with reviewing and referring statutory and regulatory
unfunded mandates to the legislature and to executive agencies for
modification or repeal, and empowering local governments to petition
the Council for permanent relief burdensome or costly regulations.

Section 3 contains the respective effective dates for Subpart H.

Section 2 is the severability clause for the bill.

Section 3 is the effective date for the bill.

Existing Law:

This legislation would amend and eliminate numerous statutorily
mandated programs.

Statement in Support:


New York has the second highest state and local tax burden in the
nation. Of the last 30 years, New York has had the highest state and
local taxes all but four times. One of the central reasons for our
persistently high taxes is mandates - the State laws, regulations and
procedures that schools and municipalities must follow.

The State relies on its municipalities and school districts to deliver
vital services to its residents and often prescribes exactly how
these services should be provided. This limits flexibility and
increases costs.

Whether it is overly prescriptive procurement rules for schools,
forcing cities, towns and villages to fill out redundant paperwork,
or limiting the options counties have to provide services, these
mandates can be very specific and often focus on process rather than
outcomes.

Many existing mandates are duplicative, outdated or simply snub common
sense. For example, school buses make their rounds with empty seats
saved for children that always arrive
at school by other means, instead of patterns of actual ridership, and
local governments are still required to submit hard copies of certain
reports to the State instead of sending them electronically.

The cost of these mandates is borne by taxpayers, and local
governments often have to cut other vital services to comply. This
bill will ease the State's micromanagement. Through doing so, it will
reduce government spending, provide property tax relief and help
reinvigorate the economy.

Legislative History:

This is a new bill.

Budget Implications:

This legislation could save local governments and school districts up
to $125 million annually.

Effective Date:

The bill would be effective immediately except where the applicable
effective dates of Subparts A through H would be effective as
specifically set forth in such Subparts.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

    S. 5856                                                  A. 8518

                       2011-2012 Regular Sessions

                      S E N A T E - A S S E M B L Y

                              June 24, 2011
                               ___________

IN  SENATE  --  Introduced  by  Sens.  SKELOS, ALESI, BALL, DeFRANCISCO,
  FARLEY,  FLANAGAN,  FUSCHILLO,  GALLIVAN,  GOLDEN,  GRIFFO,  GRISANTI,
  HANNON,  JOHNSON,  LANZA, LARKIN, LAVALLE, LIBOUS, LITTLE, MARCELLINO,
  MARTINS, MAZIARZ, McDONALD, NOZZOLIO,  RANZENHOFER,  RITCHIE,  ROBACH,
  SEWARD,  YOUNG,  ZELDIN  -- (at request of the Governor) -- read twice
  and ordered printed, and when printed to be committed to the Committee
  on Rules

IN ASSEMBLY -- Introduced by M. of A. V. LOPEZ, SILVER, FARRELL  --  (at
  request of the Governor) -- read once and referred to the Committee on
  Ways and Means

AN  ACT  to  amend  the  general municipal law and the education law, in
  relation to establishing limits upon school district and local govern-
  ment tax levies; and providing for the repeal of such provisions  upon
  expiration  thereof (Part A); to amend chapter 576 of the laws of 1974
  amending the emergency  housing  rent  control  law  relating  to  the
  control  of  and stabilization of rent in certain cases, the emergency
  housing rent control law, chapter 329 of the laws of 1963 amending the
  emergency housing rent control law relating to recontrol of  rents  in
  Albany,  chapter 555 of the laws of 1982 amending the general business
  law and the administrative code of the city of New  York  relating  to
  conversion  of  residential  property  to  cooperative  or condominium
  ownership in the city of New York, chapter 402 of  the  laws  of  1983
  amending  the  general  business  law relating to conversion of rental
  residential  property  to  cooperative  or  condominium  ownership  in
  certain  municipalities  in  the  counties  of Nassau, Westchester and
  Rockland and the rent regulation reform act of 1997,  in  relation  to
  extending  the effectiveness thereof; to amend the administrative code
  of the city of New York, the emergency tenant protection act of  nine-
  teen  seventy-four  and  the  emergency  housing  rent control law, in
  relation to limiting rent increases after vacancy of a housing  accom-
  modation  and the adjustment of maximum allowable rent based on apart-
  ment improvements; to amend the emergency  tenant  protection  act  of
  nineteen  seventy-four,  the  emergency  housing rent control law, the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12081-01-1

S. 5856                             2                            A. 8518

  administrative code of the city of  New  York  and  the  tax  law,  in
  relation  to  deregulation  thresholds; to amend the real property tax
  law, in relation to tax  exemption  for  new  multiple  dwellings  and
  exemption  of  certain  new  or  substantially  rehabilitated multiple
  dwellings from local taxation and to amend the tax law, in relation to
  verification of income (Part B); to amend the state  finance  law,  in
  relation to providing certain centralized services to political subdi-
  visions  and  extending  the  authority of the commissioner of general
  services to aggregate purchases of energy for state agencies and poli-
  tical subdivisions; to amend the general municipal law, in relation to
  purchasing information technology and telecommunications; to amend the
  county law, in relation to contracts for services; to amend the gener-
  al municipal law, in relation to certain federal contracts;  to  amend
  the  municipal home rule law, in relation to filing and publication of
  local laws; and providing for the repeal of  certain  provisions  upon
  the expiration thereof (Subpart A); to amend the general municipal law
  and  the  highway law, in relation to mutual aid (Subpart B); to amend
  the general municipal law, in relation to apportioning the expenses of
  police department members in attending  police  training  schools;  to
  amend  the  criminal  procedure law, in relation to the prosecution of
  the offense of identity theft; to  amend  the  family  court  act,  in
  relation  to  inter-county probation; to amend the mental hygiene law,
  in relation to payment of costs for  prosecution  of  inmate-patients;
  and  to  repeal section 207-m of the general municipal law relating to
  salary increases for heads of police  departments  of  municipalities,
  districts  or  authorities (Subpart C); to amend the general municipal
  law, in relation to filing requirements for  municipalities  regarding
  urban renewal plans and creation of urban renewal agencies and author-
  ities  (Subpart  D);  to amend the social services law, in relation to
  the use of debit or credit cards for child care  assistance  payments;
  and  to  amend  the  social services law, in relation to the length of
  licenses to board children, training of child protective service case-
  workers, services plans, funding for  children  and  family  services,
  district-wide   child  welfare  services  plans,  and  non-residential
  services for victims of domestic violence (Subpart E);  to  amend  the
  education law, in relation to census reporting; to amend the education
  law,  in  relation  to  transportation  of  children receiving special
  education services; to amend the education law, in relation to funding
  of certain capital projects and  auditing  of  claims;  to  amend  the
  education  law,  in  relation  to establishing a shared superintendent
  program; and to amend the education law, in relation  to  cost-sharing
  between districts; and to amend the general municipal law, in relation
  to  accounts  of officers to be examined; and providing for the repeal
  of certain provisions upon expiration thereof (Subpart  F);  to  amend
  the mental hygiene law and the social services law, in relation to the
  implementation of medical support provisions (Subpart G); and to amend
  the state administrative procedure act, in relation to alternate meth-
  ods  for  implementing regulatory mandates; and to amend the executive
  law, in relation to creation of the mandate relief council and provid-
  ing for the expiration of such provisions (Subpart H) (Part C)

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

S. 5856                             3                            A. 8518

  Section  1.  This  act enacts into law major components of legislation
relating to real property tax levies, rent  regulation,  exemption  from
local  taxation  and mandate relief.  Each component is wholly contained
within a Part identified as Parts A through C. 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 effective date of the Part, which makes a refer-
ence to a section "of this act",  when  used  in  connection  with  that
particular  component,  shall  be deemed to mean and refer to the corre-
sponding section of the Part in which it is found. Section three of this
act sets forth the general effective date of this act.

                                 PART A

  Section 1. The general municipal  law  is  amended  by  adding  a  new
section 3-c to read as follows:
  S  3-C.  LIMIT UPON REAL PROPERTY TAX LEVIES BY LOCAL GOVERNMENTS.  1.
UNLESS OTHERWISE PROVIDED BY LAW, THE AMOUNT OF REAL PROPERTY TAXES THAT
MAY BE LEVIED BY OR ON BEHALF OF ANY LOCAL GOVERNMENT,  OTHER  THAN  THE
CITY  OF  NEW  YORK AND THE COUNTIES CONTAINED THEREIN, SHALL NOT EXCEED
THE TAX LEVY LIMIT 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) "AVAILABLE CARRYOVER" MEANS 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 AN AMOUNT THAT EQUALS ONE AND ONE-HALF PERCENT
OF THE TAX LEVY LIMIT FOR SUCH FISCAL YEAR.
  (C) "COMING FISCAL YEAR" MEANS THE FISCAL YEAR OF THE LOCAL GOVERNMENT
FOR WHICH A TAX LEVY LIMIT SHALL BE DETERMINED PURSUANT TO THIS SECTION.
  (D) "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.
  (E) "LOCAL GOVERNMENT" MEANS  A  COUNTY,  CITY,  TOWN,  VILLAGE,  FIRE
DISTRICT,  OR  SPECIAL  DISTRICT INCLUDING BUT NOT LIMITED TO A DISTRICT
CREATED PURSUANT TO ARTICLE TWELVE OR TWELVE-A, OR GOVERNED  BY  ARTICLE
THIRTEEN  OF THE TOWN LAW, OR CREATED PURSUANT TO ARTICLE FIVE-A, FIVE-B
OR FIVE-D OF THE COUNTY LAW, CHAPTER FIVE HUNDRED SIXTEEN OF THE LAWS OF
NINETEEN HUNDRED TWENTY-EIGHT, OR CHAPTER TWO HUNDRED  SEVENTY-THREE  OF
THE  LAWS  OF  NINETEEN  HUNDRED  THIRTY-NINE,  AND  SHALL  INCLUDE TOWN
IMPROVEMENTS PROVIDED PURSUANT TO ARTICLES THREE-A AND TWELVE-C  OF  THE
TOWN  LAW  BUT  SHALL  NOT  INCLUDE THE CITY OF NEW YORK OR THE COUNTIES
CONTAINED THEREIN.
  (F) "PRIOR FISCAL YEAR" MEANS THE FISCAL YEAR OF THE LOCAL  GOVERNMENT
IMMEDIATELY PRECEDING THE COMING FISCAL YEAR.

S. 5856                             4                            A. 8518

  (G) "TAX LEVY LIMIT" MEANS THE AMOUNT OF TAXES AUTHORIZED TO BE LEVIED
BY  OR  ON  BEHALF  OF  A  LOCAL  GOVERNMENT  PURSUANT  TO THIS SECTION,
PROVIDED, HOWEVER, THAT THE TAX LEVY LIMIT SHALL NOT INCLUDE THE FOLLOW-
ING:
  (I)  A TAX LEVY NECESSARY FOR EXPENDITURES RESULTING FROM COURT ORDERS
OR JUDGMENTS AGAINST THE LOCAL GOVERNMENT ARISING OUT  OF  TORT  ACTIONS
FOR  ANY AMOUNT THAT EXCEEDS FIVE PERCENT OF THE TOTAL TAX LEVIED IN THE
PRIOR FISCAL YEAR;
  (II) IN YEARS IN WHICH THE SYSTEM AVERAGE ACTUARIAL CONTRIBUTION  RATE
OF THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM, AS DEFINED
BY  PARAGRAPH  TEN OF SUBDIVISION A OF SECTION NINETEEN-A OF THE RETIRE-
MENT AND SOCIAL SECURITY LAW, INCREASES  BY  MORE  THAN  TWO  PERCENTAGE
POINTS FROM THE PREVIOUS YEAR, A TAX LEVY NECESSARY FOR EXPENDITURES FOR
THE  COMING  FISCAL  YEAR FOR LOCAL GOVERNMENT EMPLOYER CONTRIBUTIONS TO
THE NEW YORK STATE AND LOCAL  EMPLOYEES'  RETIREMENT  SYSTEM  CAUSED  BY
GROWTH  IN  THE  SYSTEM  AVERAGE  ACTUARIAL  CONTRIBUTION RATE MINUS TWO
PERCENTAGE POINTS;
  (III) IN YEARS IN WHICH THE SYSTEM AVERAGE ACTUARIAL CONTRIBUTION RATE
OF THE NEW YORK STATE AND LOCAL POLICE AND FIRE  RETIREMENT  SYSTEM,  AS
DEFINED  BY  PARAGRAPH  ELEVEN OF SUBDIVISION A OF SECTION THREE HUNDRED
NINETEEN-A OF THE RETIREMENT AND SOCIAL SECURITY LAW, INCREASES BY  MORE
THAN  TWO PERCENTAGE POINTS FROM THE PREVIOUS YEAR, A TAX LEVY NECESSARY
FOR EXPENDITURES FOR THE COMING FISCAL YEAR FOR LOCAL GOVERNMENT EMPLOY-
ER CONTRIBUTIONS TO THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIRE-
MENT SYSTEM CAUSED BY GROWTH IN THE SYSTEM  AVERAGE  ACTUARIAL  CONTRIB-
UTION RATE MINUS TWO PERCENTAGE POINTS;
  (IV)  IN  YEARS  IN WHICH THE NORMAL CONTRIBUTION RATE OF THE NEW YORK
STATE TEACHERS' RETIREMENT SYSTEM, AS DEFINED BY PARAGRAPH A OF SUBDIVI-
SION TWO OF  SECTION  FIVE  HUNDRED  SEVENTEEN  OF  THE  EDUCATION  LAW,
INCREASES  BY  MORE THAN TWO PERCENTAGE POINTS FROM THE PREVIOUS YEAR, A
TAX LEVY NECESSARY FOR EXPENDITURES FOR THE COMING FISCAL YEAR FOR LOCAL
GOVERNMENT EMPLOYER  CONTRIBUTIONS  TO  THE  NEW  YORK  STATE  TEACHERS'
RETIREMENT SYSTEM CAUSED BY GROWTH IN THE NORMAL CONTRIBUTION RATE MINUS
TWO PERCENTAGE POINTS.
  (H)  "TAX"  OR  "TAXES"  SHALL  INCLUDE (I) A CHARGE IMPOSED UPON REAL
PROPERTY BY OR ON BEHALF OF A COUNTY,  CITY,  TOWN,  VILLAGE  OR  SCHOOL
DISTRICT  FOR MUNICIPAL OR SCHOOL DISTRICT PURPOSES, AND (II) SPECIAL AD
VALOREM LEVIES AND SPECIAL ASSESSMENTS AS DEFINED IN SUBDIVISIONS  FOUR-
TEEN  AND  FIFTEEN  OF  SECTION ONE HUNDRED TWO OF THE REAL PROPERTY TAX
LAW.
  3. (A) SUBJECT TO THE PROVISIONS OF SUBDIVISION FIVE OF THIS  SECTION,
BEGINNING  WITH  THE  FISCAL YEAR THAT BEGINS IN TWO THOUSAND TWELVE, NO
LOCAL GOVERNMENT SHALL ADOPT A BUDGET THAT REQUIRES A TAX LEVY  THAT  IS
GREATER  THAN  THE  TAX  LEVY LIMIT FOR THE COMING FISCAL YEAR. PROVIDED
HOWEVER THE TAX LEVY LIMIT  SHALL  NOT  PROHIBIT  A  LEVY  NECESSARY  TO
SUPPORT  THE  EXPENDITURES PURSUANT TO SUBPARAGRAPHS (I) THROUGH (IV) OF
PARAGRAPH (G) OF SUBDIVISION TWO OF THIS SECTION.
  (B)(I) THE COMMISSIONER OF TAXATION  AND  FINANCE  SHALL  CALCULATE  A
QUANTITY  CHANGE  FACTOR FOR EACH LOCAL GOVERNMENT FOR THE COMING FISCAL
YEAR BASED UPON THE PHYSICAL OR QUANTITY CHANGE, AS DEFINED  BY  SECTION
TWELVE  HUNDRED  TWENTY  OF  THE  REAL PROPERTY TAX LAW, REPORTED TO THE
COMMISSIONER OF TAXATION AND FINANCE BY THE ASSESSOR OR ASSESSORS PURSU-
ANT TO SECTION FIVE HUNDRED SEVENTY-FIVE OF THE REAL PROPERTY  TAX  LAW.
THE  QUANTITY  CHANGE FACTOR SHALL SHOW THE PERCENTAGE BY WHICH THE FULL
VALUE OF THE TAXABLE REAL PROPERTY IN THE LOCAL GOVERNMENT  HAS  CHANGED
DUE  TO  PHYSICAL OR QUANTITY CHANGE BETWEEN THE SECOND FINAL ASSESSMENT

S. 5856                             5                            A. 8518

ROLL OR ROLLS PRECEDING THE FINAL ASSESSMENT ROLL OR  ROLLS  UPON  WHICH
TAXES  ARE  TO  BE  LEVIED, AND THE FINAL ASSESSMENT ROLL OR ROLLS IMME-
DIATELY PRECEDING THE FINAL ASSESSMENT ROLL OR ROLLS  UPON  WHICH  TAXES
ARE TO BE LEVIED.
  (II)  AFTER  DETERMINING  THE  QUANTITY  CHANGE  FACTOR  FOR THE LOCAL
GOVERNMENT, THE COMMISSIONER OF TAXATION AND FINANCE  SHALL  PROCEED  AS
FOLLOWS:
  (A)  IF  THE  QUANTITY  CHANGE FACTOR IS NEGATIVE, THE COMMISSIONER OF
TAXATION AND FINANCE SHALL NOT DETERMINE A TAX BASE  GROWTH  FACTOR  FOR
THE LOCAL GOVERNMENT.
  (B)  IF  THE  QUANTITY  CHANGE FACTOR IS POSITIVE, THE COMMISSIONER OF
TAXATION AND FINANCE SHALL DETERMINE A TAX BASE GROWTH  FACTOR  FOR  THE
LOCAL GOVERNMENT WHICH IS EQUAL TO ONE PLUS THE QUANTITY CHANGE FACTOR.
  (III)  THE COMMISSIONER OF TAXATION AND FINANCE SHALL NOTIFY THE STATE
COMPTROLLER AND EACH LOCAL GOVERNMENT OF THE APPLICABLE TAX BASE  GROWTH
FACTORS, IF ANY, AS SOON THEREAFTER AS SUCH FACTORS ARE DETERMINED.
  (C)  EACH LOCAL GOVERNMENT SHALL CALCULATE THE TAX LEVY LIMIT APPLICA-
BLE TO THE COMING FISCAL YEAR WHICH SHALL BE DETERMINED AS FOLLOWS:
  (I) ASCERTAIN THE TOTAL AMOUNT OF TAXES LEVIED FOR  THE  PRIOR  FISCAL
YEAR.
  (II)  MULTIPLY  THE  RESULT  BY THE TAX BASE GROWTH FACTOR, CALCULATED
PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION, IF ANY.
  (III) ADD ANY PAYMENTS IN LIEU OF TAXES THAT WERE  RECEIVABLE  IN  THE
PRIOR FISCAL YEAR.
  (IV)  SUBTRACT THE TAX LEVY NECESSARY TO SUPPORT EXPENDITURES PURSUANT
TO SUBPARAGRAPH (I) OF PARAGRAPH (G) OF SUBDIVISION TWO OF THIS  SECTION
FOR 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) WHENEVER THE RESPONSIBILITY AND ASSOCIATED COST OF A LOCAL GOVERN-
MENT FUNCTION IS TRANSFERRED TO  ANOTHER  LOCAL  GOVERNMENT,  THE  STATE
COMPTROLLER  SHALL DETERMINE THE COSTS AND SAVINGS ON THE AFFECTED LOCAL
GOVERNMENTS ATTRIBUTABLE TO SUCH TRANSFER  FOR  THE  FIRST  FISCAL  YEAR
FOLLOWING THE TRANSFER, AND NOTIFY SUCH LOCAL GOVERNMENTS OF SUCH DETER-
MINATION AND THAT THEY SHALL ADJUST THEIR TAX LEVY LIMITS ACCORDINGLY.
  4. (A) WHEN TWO OR MORE LOCAL GOVERNMENTS CONSOLIDATE, THE STATE COMP-
TROLLER  SHALL  DETERMINE  THE TAX LEVY LIMIT FOR THE CONSOLIDATED LOCAL
GOVERNMENT FOR THE FIRST FISCAL YEAR FOLLOWING THE  CONSOLIDATION  BASED
ON  THE  RESPECTIVE  TAX  LEVY LIMITS OF THE COMPONENT LOCAL GOVERNMENTS
THAT FORMED SUCH CONSOLIDATED LOCAL GOVERNMENT FROM THE LAST FISCAL YEAR
PRIOR TO THE CONSOLIDATION.
  (B) WHEN A LOCAL GOVERNMENT DISSOLVES,  THE  STATE  COMPTROLLER  SHALL
DETERMINE  THE  TAX LEVY LIMIT FOR THE LOCAL GOVERNMENT THAT ASSUMES THE
DEBTS, LIABILITIES, AND OBLIGATIONS OF SUCH DISSOLVED  LOCAL  GOVERNMENT
FOR THE FIRST FISCAL YEAR FOLLOWING THE DISSOLUTION BASED ON THE RESPEC-
TIVE  TAX  LEVY LIMITS OF SUCH DISSOLVED LOCAL GOVERNMENT AND SUCH LOCAL
GOVERNMENT THAT ASSUMES THE DEBTS, LIABILITIES, AND OBLIGATIONS OF  SUCH
DISSOLVED  LOCAL  GOVERNMENT  FROM  THE  LAST  FISCAL  YEAR PRIOR TO THE
DISSOLUTION.
  (C) THE TAX LEVY LIMIT ESTABLISHED BY THIS SECTION SHALL NOT APPLY  TO
THE  FIRST  FISCAL YEAR AFTER A LOCAL GOVERNMENT IS NEWLY ESTABLISHED OR
CONSTITUTED THROUGH A PROCESS OTHER THAN CONSOLIDATION OR DISSOLUTION.
  5. A LOCAL GOVERNMENT MAY ADOPT A BUDGET THAT REQUIRES A TAX LEVY THAT
IS GREATER THAN THE TAX LEVY LIMIT  FOR  THE  COMING  FISCAL  YEAR,  NOT

S. 5856                             6                            A. 8518

INCLUDING  ANY  LEVY  NECESSARY  TO SUPPORT THE EXPENDITURES PURSUANT TO
SUBPARAGRAPHS (I) THROUGH (IV) OF PARAGRAPH G OF SUBDIVISION TWO OF THIS
SECTION, ONLY IF THE GOVERNING  BODY  OF  SUCH  LOCAL  GOVERNMENT  FIRST
ENACTS,  BY  A  VOTE  OF SIXTY PERCENT OF THE TOTAL VOTING POWER OF SUCH
BODY, A LOCAL LAW TO OVERRIDE SUCH LIMIT FOR  SUCH  COMING  FISCAL  YEAR
ONLY,  OR  IN  THE  CASE  OF  A DISTRICT OR FIRE DISTRICT, A RESOLUTION,
APPROVED BY A VOTE OF SIXTY PERCENT OF THE TOTAL VOTING  POWER  OF  SUCH
BODY, TO OVERRIDE SUCH LIMIT FOR SUCH COMING FISCAL YEAR ONLY.
  6.  IN  THE  EVENT  A  LOCAL  GOVERNMENT'S ACTUAL TAX LEVY FOR A GIVEN
FISCAL YEAR EXCEEDS THE TAX LEVY LIMIT AS ESTABLISHED PURSUANT  TO  THIS
SECTION  DUE TO CLERICAL OR TECHNICAL ERRORS, THE LOCAL GOVERNMENT 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.  IF, UPON EXAMINATION PURSUANT TO SECTIONS THIRTY-
THREE AND THIRTY-FOUR OF THIS CHAPTER, THE STATE COMPTROLLER FINDS  THAT
A  LOCAL  GOVERNMENT  LEVIED  TAXES IN EXCESS OF THE APPLICABLE TAX LEVY
LIMIT, THE LOCAL GOVERNMENT, AS SOON  AS  PRACTICABLE,  SHALL  PLACE  AN
AMOUNT EQUAL TO THE EXCESS AMOUNT OF THE LEVY IN SUCH RESERVE IN ACCORD-
ANCE WITH THIS SUBDIVISION.
  7.    ALL  LOCAL GOVERNMENTS SUBJECT TO THE PROVISIONS OF THIS SECTION
SHALL, PRIOR TO ADOPTING A BUDGET FOR THE COMING FISCAL YEAR, SUBMIT  TO
THE  STATE COMPTROLLER, IN A FORM AND MANNER AS HE OR SHE MAY PRESCRIBE,
ANY INFORMATION NECESSARY FOR CALCULATING THE TAX  LEVY  LIMIT  FOR  THE
COMING FISCAL YEAR.
  S  2.  The  education law is amended by adding a new section 2023-a to
read as follows:
  S 2023-A.  LIMITATIONS UPON SCHOOL DISTRICT TAX LEVIES. 1.  GENERALLY.
UNLESS OTHERWISE PROVIDED BY LAW, THE AMOUNT OF TAXES THAT MAY BE LEVIED
BY  OR  ON  BEHALF  OF  ANY  SCHOOL  DISTRICT,  OTHER THAN A CITY SCHOOL
DISTRICT OF A CITY WITH ONE HUNDRED TWENTY-FIVE THOUSAND INHABITANTS  OR
MORE,  SHALL  NOT EXCEED THE TAX LEVY LIMIT ESTABLISHED PURSUANT TO THIS
SECTION, NOT INCLUDING ANY TAX LEVY NECESSARY TO  SUPPORT  THE  EXPENDI-
TURES  PURSUANT  TO  SUBPARAGRAPHS  (I)  THROUGH  (IV) OF PARAGRAPH I OF
SUBDIVISION TWO OF THIS SECTION.
  2. DEFINITIONS. AS 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.  "AVAILABLE  CARRYOVER"  MEANS THE AMOUNT BY WHICH THE TAX LEVY FOR
THE PRIOR SCHOOL YEAR WAS BELOW THE APPLICABLE TAX LEVY LIMIT  FOR  SUCH
SCHOOL  YEAR,  IF  ANY,  BUT  NO MORE THAN AN AMOUNT THAT EQUALS ONE AND
ONE-HALF PERCENT OF THE TAX LEVY LIMIT FOR SUCH SCHOOL YEAR.
  C. "CAPITAL LOCAL EXPENDITURES" MEANS THE TAXES ASSOCIATED WITH  BUDG-
ETED  EXPENDITURES  RESULTING  FROM THE FINANCING, REFINANCING, ACQUISI-
TION, DESIGN, CONSTRUCTION, RECONSTRUCTION, REHABILITATION, IMPROVEMENT,
FURNISHING AND EQUIPPING OF, OR OTHERWISE PROVIDING FOR SCHOOL  DISTRICT
CAPITAL  FACILITIES OR SCHOOL DISTRICT CAPITAL EQUIPMENT, INCLUDING DEBT
SERVICE AND LEASE EXPENDITURES, AND TRANSPORTATION CAPITAL DEBT SERVICE,
SUBJECT TO THE APPROVAL OF THE QUALIFIED VOTERS WHERE REQUIRED BY LAW.
  D. "CAPITAL TAX LEVY" MEANS THE TAX LEVY NECESSARY TO SUPPORT  CAPITAL
LOCAL EXPENDITURES, IF ANY.
  E.  "COMING  SCHOOL  YEAR"  MEANS  THE  SCHOOL YEAR FOR WHICH TAX LEVY
LIMITS ARE BEING DETERMINED PURSUANT TO THIS SECTION.

S. 5856                             7                            A. 8518

  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 PRECEDING JANUARY FIRST OF THE
CURRENT YEAR MINUS THE AVERAGE OF THE NATIONAL  CONSUMER  PRICE  INDEXES
DETERMINED BY THE UNITED STATES DEPARTMENT OF LABOR FOR THE TWELVE-MONTH
PERIOD  PRECEDING  JANUARY FIRST OF THE PRIOR 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 PRECEDING JANUARY
FIRST  OF THE PRIOR YEAR, WITH THE RESULT EXPRESSED AS A DECIMAL TO FOUR
PLACES.
  G. "PRIOR SCHOOL YEAR" MEANS THE SCHOOL YEAR IMMEDIATELY PRECEDING THE
COMING SCHOOL YEAR.
  H. "SCHOOL DISTRICT" MEANS A COMMON SCHOOL DISTRICT, UNION FREE SCHOOL
DISTRICT, CENTRAL SCHOOL DISTRICT, CENTRAL HIGH  SCHOOL  DISTRICT  OR  A
CITY  SCHOOL  DISTRICT  IN A CITY WITH LESS THAN ONE HUNDRED TWENTY-FIVE
THOUSAND INHABITANTS.
  I. "TAX LEVY LIMIT" MEANS THE AMOUNT OF TAXES  A  SCHOOL  DISTRICT  IS
AUTHORIZED TO LEVY PURSUANT TO THIS SECTION, PROVIDED, HOWEVER, THAT THE
TAX LEVY LIMIT SHALL NOT INCLUDE THE FOLLOWING:
  (I)  A TAX LEVY NECESSARY FOR EXPENDITURES RESULTING FROM COURT ORDERS
OR JUDGMENTS AGAINST THE SCHOOL DISTRICT ARISING OUT OF TORT ACTIONS FOR
ANY AMOUNT THAT EXCEEDS FIVE PERCENT OF THE  TOTAL  TAX  LEVIED  IN  THE
PRIOR SCHOOL YEAR;
  (II)  IN YEARS IN WHICH THE SYSTEM AVERAGE ACTUARIAL CONTRIBUTION RATE
OF THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM, AS DEFINED
BY PARAGRAPH TEN OF SUBDIVISION A OF SECTION NINETEEN-A OF  THE  RETIRE-
MENT  AND  SOCIAL  SECURITY  LAW,  INCREASES BY MORE THAN TWO PERCENTAGE
POINTS FROM THE PREVIOUS YEAR, A TAX LEVY NECESSARY FOR EXPENDITURES FOR
THE COMING FISCAL YEAR FOR SCHOOL DISTRICT EMPLOYER CONTRIBUTIONS TO THE
NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM CAUSED  BY  GROWTH
IN  THE  SYSTEM AVERAGE ACTUARIAL CONTRIBUTION RATE MINUS TWO PERCENTAGE
POINTS;
  (III) IN YEARS IN WHICH THE NORMAL CONTRIBUTION RATE OF THE  NEW  YORK
STATE TEACHERS' RETIREMENT SYSTEM, AS DEFINED BY PARAGRAPH A OF SUBDIVI-
SION TWO OF SECTION FIVE HUNDRED SEVENTEEN OF THIS CHAPTER, INCREASES BY
MORE  THAN  TWO  PERCENTAGE  POINTS  FROM  THE PREVIOUS YEAR, A TAX LEVY
NECESSARY FOR  EXPENDITURES  FOR  THE  COMING  FISCAL  YEAR  FOR  SCHOOL
DISTRICT  EMPLOYER CONTRIBUTIONS TO THE NEW YORK STATE TEACHERS' RETIRE-
MENT SYSTEM CAUSED BY GROWTH IN THE NORMAL CONTRIBUTION RATE  MINUS  TWO
PERCENTAGE POINTS; AND
  (IV) A CAPITAL TAX LEVY.
  2-A.  TAX  BASE  GROWTH FACTOR. A. NO LATER THAN FEBRUARY FIFTEENTH OF
EACH YEAR, THE COMMISSIONER OF TAXATION AND FINANCE SHALL IDENTIFY THOSE
SCHOOL DISTRICTS FOR WHICH TAX BASE GROWTH FACTORS  MUST  BE  DETERMINED
FOR THE COMING SCHOOL YEAR, AND SHALL NOTIFY THE COMMISSIONER OF THE TAX
BASE GROWTH FACTORS SO DETERMINED, IF ANY.
  B. THE COMMISSIONER OF TAXATION AND FINANCE SHALL CALCULATE A QUANTITY
CHANGE  FACTOR FOR THE COMING SCHOOL YEAR FOR EACH SCHOOL DISTRICT BASED
UPON THE PHYSICAL OR QUANTITY  CHANGE,  AS  DEFINED  BY  SECTION  TWELVE
HUNDRED TWENTY OF THE REAL PROPERTY TAX LAW, REPORTED TO THE COMMISSION-
ER  OF  TAXATION  AND  FINANCE  BY THE ASSESSOR OR ASSESSORS PURSUANT TO
SECTION FIVE HUNDRED SEVENTY-FIVE OF THE  REAL  PROPERTY  TAX  LAW.  THE
QUANTITY CHANGE FACTOR SHALL SHOW THE PERCENTAGE BY WHICH THE FULL VALUE
OF  THE  TAXABLE REAL PROPERTY IN THE SCHOOL DISTRICT HAS CHANGED DUE TO
PHYSICAL OR QUANTITY CHANGE BETWEEN THE SECOND FINAL ASSESSMENT ROLL  OR
ROLLS  PRECEDING THE FINAL ASSESSMENT ROLL OR ROLLS UPON WHICH TAXES ARE

S. 5856                             8                            A. 8518

TO BE LEVIED, AND THE FINAL ASSESSMENT ROLL OR ROLLS IMMEDIATELY PRECED-
ING THE FINAL ASSESSMENT ROLL OR  ROLLS  UPON  WHICH  TAXES  ARE  TO  BE
LEVIED.
  C. AFTER DETERMINING THE QUANTITY CHANGE FACTOR FOR A SCHOOL DISTRICT,
THE COMMISSIONER OF TAXATION AND FINANCE SHALL PROCEED AS FOLLOWS:
  (I)  IF  THE  QUANTITY  CHANGE FACTOR IS NEGATIVE, THE COMMISSIONER OF
TAXATION AND FINANCE SHALL NOT DETERMINE A TAX BASE  GROWTH  FACTOR  FOR
THE SCHOOL DISTRICT.
  (II)  IF  THE  QUANTITY CHANGE FACTOR IS POSITIVE, THE COMMISSIONER OF
TAXATION AND FINANCE SHALL DETERMINE A TAX BASE GROWTH  FACTOR  FOR  THE
SCHOOL DISTRICT WHICH IS EQUAL TO ONE PLUS THE QUANTITY CHANGE FACTOR.
  3.  COMPUTATION  OF  TAX  LEVY  LIMITS.  A. EACH SCHOOL DISTRICT SHALL
CALCULATE THE TAX LEVY LIMIT FOR EACH SCHOOL YEAR WHICH SHALL BE  DETER-
MINED AS FOLLOWS:
  (1)  ASCERTAIN  THE  TOTAL AMOUNT OF TAXES LEVIED FOR THE PRIOR SCHOOL
YEAR.
  (2) MULTIPLY THE RESULT BY THE TAX BASE GROWTH FACTOR, IF ANY.
  (3) ADD ANY PAYMENTS IN LIEU OF TAXES  THAT  WERE  RECEIVABLE  IN  THE
PRIOR SCHOOL YEAR.
  (4) SUBTRACT THE TAX LEVY NECESSARY TO SUPPORT THE EXPENDITURES PURSU-
ANT  TO  SUBPARAGRAPHS (I) AND (IV) OF PARAGRAPH I OF SUBDIVISION TWO OF
THIS SECTION FOR THE PRIOR SCHOOL YEAR, IF ANY.
  (5) MULTIPLY THE RESULT BY THE ALLOWABLE LEVY GROWTH FACTOR.
  (6) SUBTRACT ANY PAYMENTS IN LIEU OF TAXES RECEIVABLE  IN  THE  COMING
FISCAL YEAR.
  (7) ADD THE AVAILABLE CARRYOVER, IF ANY.
  B.  ON OR BEFORE MARCH FIRST OF EACH YEAR, ANY SCHOOL DISTRICT SUBJECT
TO THE PROVISIONS OF THIS SECTION SHALL SUBMIT TO THE STATE COMPTROLLER,
THE  COMMISSIONER,  AND  THE  COMMISSIONER OF TAXATION AND FINANCE, IN A
FORM AND MANNER PRESCRIBED BY THE  STATE  COMPTROLLER,  ANY  INFORMATION
NECESSARY  FOR  THE  CALCULATION  OF  THE TAX LEVY LIMIT; AND THE SCHOOL
DISTRICT'S DETERMINATION OF THE TAX LEVY LIMIT PURSUANT TO THIS  SECTION
SHALL  BE  SUBJECT TO REVIEW BY THE COMMISSIONER AND THE COMMISSIONER OF
TAXATION AND FINANCE.
  4. REORGANIZED SCHOOL DISTRICTS. WHEN TWO  OR  MORE  SCHOOL  DISTRICTS
REORGANIZE,  THE COMMISSIONER SHALL DETERMINE THE TAX LEVY LIMIT FOR THE
REORGANIZED SCHOOL DISTRICT FOR THE  FIRST  SCHOOL  YEAR  FOLLOWING  THE
REORGANIZATION  BASED  ON  THE  RESPECTIVE TAX LEVY LIMITS OF THE SCHOOL
DISTRICTS THAT FORMED THE REORGANIZED DISTRICT FROM THE LAST SCHOOL YEAR
IN WHICH THEY WERE SEPARATE DISTRICTS, PROVIDED THAT  IN  THE  EVENT  OF
FORMATION OF A NEW CENTRAL HIGH SCHOOL DISTRICT, THE TAX LEVY LIMITS FOR
THE  NEW CENTRAL HIGH SCHOOL DISTRICT AND ITS COMPONENT SCHOOL DISTRICTS
SHALL BE DETERMINED IN ACCORDANCE WITH A METHODOLOGY PRESCRIBED  BY  THE
COMMISSIONER.
  5.  ERRONEOUS LEVIES. IN THE EVENT A SCHOOL DISTRICT'S ACTUAL TAX LEVY
FOR A GIVEN SCHOOL YEAR EXCEEDS THE MAXIMUM  ALLOWABLE  LEVY  AS  ESTAB-
LISHED PURSUANT TO THIS SECTION DUE TO CLERICAL OR TECHNICAL ERRORS, THE
SCHOOL  DISTRICT 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 SCHOOL YEAR.
  6. (A) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,  IN
THE  EVENT  THE  TRUSTEE,  TRUSTEES  OR  BOARD  OF EDUCATION OF A SCHOOL
DISTRICT THAT IS SUBJECT TO THE PROVISIONS OF THIS  SECTION  PROPOSES  A
BUDGET  THAT WILL REQUIRE A TAX LEVY THAT EXCEEDS THE TAX LEVY LIMIT FOR
THE CORRESPONDING SCHOOL YEAR,  NOT  INCLUDING  ANY  LEVY  NECESSARY  TO

S. 5856                             9                            A. 8518

SUPPORT  THE  EXPENDITURES PURSUANT TO SUBPARAGRAPHS (I) THROUGH (IV) OF
PARAGRAPH I OF SUBDIVISION TWO OF THIS SECTION, THEN SUCH  BUDGET  SHALL
BE APPROVED IF SIXTY PERCENT OF THE VOTES CAST THEREON ARE IN THE AFFIR-
MATIVE.
  (B) WHERE THE TRUSTEE, TRUSTEES OR BOARD OF EDUCATION PROPOSES A BUDG-
ET SUBJECT TO THE REQUIREMENTS OF PARAGRAPH (A) OF THIS SUBDIVISION, THE
BALLOT FOR SUCH BUDGET SHALL INCLUDE THE FOLLOWING STATEMENT IN SUBSTAN-
TIALLY  THE  SAME  FORM:  "ADOPTION  OF  THIS BUDGET REQUIRES A TAX LEVY
INCREASE OF         WHICH EXCEEDS THE STATUTORY TAX LEVY INCREASE  LIMIT
OF       FOR THIS SCHOOL FISCAL YEAR AND THEREFORE EXCEEDS THE STATE TAX
CAP AND MUST BE APPROVED BY SIXTY PERCENT OF THE QUALIFIED VOTERS  PRES-
ENT AND VOTING."
  7.  IN  THE EVENT THAT THE ORIGINAL PROPOSED BUDGET IS NOT APPROVED BY
THE VOTERS, THE SOLE TRUSTEE, TRUSTEES OR BOARD OF EDUCATION MAY ADOPT A
FINAL BUDGET PURSUANT TO SUBDIVISION EIGHT OF THIS SECTION  OR  RESUBMIT
TO  THE  VOTERS  THE  ORIGINAL OR A REVISED BUDGET AT A SPECIAL DISTRICT
MEETING IN ACCORDANCE WITH  SUBDIVISION THREE OF  SECTION  TWO  THOUSAND
SEVEN  OF  THIS  PART.   UPON ONE DEFEAT OF SUCH RESUBMITTED BUDGET, THE
SOLE TRUSTEE, TRUSTEES OR BOARD OF EDUCATION SHALL ADOPT A FINAL  BUDGET
PURSUANT TO SUBDIVISION EIGHT OF THIS SECTION.
  8.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, IF THE
QUALIFIED VOTERS FAIL TO APPROVE THE  PROPOSED  SCHOOL  DISTRICT  BUDGET
UPON  RESUBMISSION  OR UPON A DETERMINATION NOT TO RESUBMIT FOR A SECOND
VOTE PURSUANT TO SUBDIVISION SEVEN OF THIS SECTION,  THE  SOLE  TRUSTEE,
TRUSTEES  OR BOARD OF EDUCATION SHALL LEVY A TAX NO GREATER THAN THE TAX
THAT WAS LEVIED FOR THE PRIOR SCHOOL YEAR.
  9. NOTHING IN THIS SECTION SHALL PRECLUDE THE  TRUSTEE,  TRUSTEES,  OR
BOARD  OF  EDUCATION  OF  A  SCHOOL  DISTRICT, IN THEIR DISCRETION, FROM
SUBMITTING ADDITIONAL ITEMS OF EXPENDITURES TO THE VOTERS  FOR  APPROVAL
AS  SEPARATE  PROPOSITIONS  OR  THE  VOTERS FROM SUBMITTING PROPOSITIONS
PURSUANT TO SECTIONS TWO THOUSAND EIGHT AND TWO THOUSAND THIRTY-FIVE  OF
THIS PART; PROVIDED HOWEVER, EXCEPT IN THE CASE OF A PROPOSITION SUBMIT-
TED  FOR ANY EXPENDITURE CONTAINED WITHIN SUBPARAGRAPHS (I) THROUGH (IV)
OF PARAGRAPH I OF SUBDIVISION TWO OF THIS SECTION, IF  ANY  PROPOSITION,
OR  PROPOSITIONS  COLLECTIVELY  THAT  ARE  SUBJECT TO A VOTE ON THE SAME
DATE, WOULD REQUIRE AN EXPENDITURE OF MONEY THAT  WOULD  REQUIRE  A  TAX
LEVY  AND  WOULD  RESULT  IN  THE  TAX LEVY LIMIT BEING EXCEEDED FOR THE
CORRESPONDING SCHOOL YEAR THEN SUCH PROPOSITION  SHALL  BE  APPROVED  IF
SIXTY PERCENT OF THE VOTES CAST THEREON ARE IN THE AFFIRMATIVE.
  S  3.  Section  2023 of the education law, as amended by section 24 of
part A of chapter 436 of the laws of 1997, subdivision 1 as  amended  by
chapter 682 of the laws of 2002, subparagraphs (v) and (vi) of paragraph
b  of  subdivision  4  as separately amended by section 1 of part D-2 of
chapter 57 of the laws of 2007 and chapter 422  of  the  laws  of  2007,
subparagraph (vii) of paragraph b of subdivision 4 as added by section 1
of  part  D-2  of  chapter 57 of the laws of 2007, subparagraph (vii) of
paragraph b of subdivision 4 as added by chapter 422 of the laws of 2007
and paragraph b-1 of subdivision 4 as amended by section 5 of part B  of
chapter 57 of the laws of 2008, is amended to read as follows:
  S  2023.  Levy  of  tax for certain purposes without vote; contingency
budget. 1. If the qualified voters shall neglect or refuse to  vote  the
sum  estimated  necessary for teachers' salaries, after applying thereto
the public school moneys, and other moneys received or  to  be  received
for  that  purpose,  or  if they shall neglect or refuse to vote the sum
estimated necessary for  ordinary  contingent  expenses,  including  the
purchase  of  library books and other instructional materials associated

S. 5856                            10                            A. 8518

with a library and expenses incurred for  interschool  athletics,  field
trips  and other extracurricular activities and the expenses for cafete-
ria or restaurant services, the sole  trustee,  board  of  trustees,  or
board  of  education  shall  adopt  a  contingency budget including such
expenses and shall levy a tax, SUBJECT TO THE RESTRICTIONS AS SET  FORTH
IN SUBDIVISION FOUR OF THIS SECTION AND SUBDIVISION EIGHT OF SECTION TWO
THOUSAND TWENTY-THREE-A OF THIS PART, for the same, in like manner as if
the  same had been voted by the qualified voters, subject to the limita-
tions contained in subdivisions three and four of this section.
  2. Notwithstanding the defeat of a  school  budget,  school  districts
shall  continue  to  transport  students  to and from the regular school
program in accordance with the mileage limitations previously adopted by
the qualified voters of the school district. Such mileage  limits  shall
change  only  when amended by a special proposition passed by a majority
of the qualified voters of the  school  district.  In  cases  where  the
school  budget  is  defeated  by  such  qualified  voters  of the school
district, appropriations for transportation  costs  for  purposes  other
than  for  transportation  to  and  from the regular school program, and
transportation that would  constitute  an  ordinary  contingent  expense
pursuant  to subdivision one of this section, shall be authorized in the
budget only after approval by the qualified voters of the district.
  3. The administrative component of  a  contingency  budget  shall  not
comprise a greater percentage of the contingency budget exclusive of the
capital  component than the lesser of (1) the percentage the administra-
tive component had comprised in the prior year budget exclusive  of  the
capital  component;  or  (2) the percentage the administrative component
had comprised in the last proposed  defeated  budget  exclusive  of  the
capital component.
  4.  a.  The  contingency  budget  shall  not  result  in a [percentage
increase in total spending over the district's total spending under  the
school district budget for the prior school year that exceeds the lesser
of:    (i) the result obtained when one hundred twenty percent is multi-
plied by the percentage increase in the consumer price index,  with  the
result rounded to two decimal places; or (ii) four percent.
  b.  The following types of expenditures shall be disregarded in deter-
mining total spending:
  (i) expenditures resulting from a tax certiorari proceeding;
  (ii) expenditures resulting from a court order or judgment against the
school district;
  (iii) emergency expenditures that are certified by the commissioner as
necessary as a result of damage to, or destruction of, a school building
or school equipment;
  (iv) capital expenditures resulting from  the  construction,  acquisi-
tion,  reconstruction,  rehabilitation  or improvement of school facili-
ties, including debt service and  lease  expenditures,  subject  to  the
approval of the qualified voters where required by law;
  (v)  expenditures  in the contingency budget attributable to projected
increases in public school enrollment, which, for the  purpose  of  this
subdivision,  may  include  increases  attributable to the enrollment of
students attending a pre-kindergarten program established in  accordance
with  section  thirty-six  hundred two-e of this chapter, to be computed
based upon an increase in enrollment from the year  prior  to  the  base
year  for  which  the budget is being adopted to the base year for which
the budget is being adopted, provided that where the trustees  or  board
of education have documented evidence that a further increase in enroll-
ment  will occur during the school year for which the contingency budget

S. 5856                            11                            A. 8518

is prepared because of new construction, inception of a pre-kindergarten
program, growth or similar factors,  the  expenditures  attributable  to
such additional enrollment may also be disregarded;
  (vi)  non-recurring  expenditures  in the prior year's school district
budget; and
  (vii) expenditures for payments to charter schools pursuant to section
twenty-eight hundred fifty-six of this chapter.
  (vii) expenditures for self-supporting programs. For purposes of  this
subparagraph,  "self-supporting  programs"  shall mean any programs that
are entirely funded by private funds that cover all  the  costs  of  the
program.
  b-1.  Notwithstanding  any  other provision of this subdivision to the
contrary, in the event a state grant in aid provided to the district  in
the  prior  year  is  eliminated and incorporated into a non-categorical
general state aid in the current school year, the amount of  such  grant
may  be  included  in  the  computation  of total spending for the prior
school year, provided that the commissioner has verified that the  grant
in  aid  has  been  incorporated into such non-categorical general state
aid] TAX LEVY GREATER THAN THE TAX LEVIED FOR THE PRIOR SCHOOL YEAR.
  [c.] B. The resolution of the trustee, board of trustees, or board  of
education adopting a contingency budget shall incorporate by reference a
statement  specifying  the  projected percentage increase or decrease in
total spending for the school  year,  and  explaining  the  reasons  for
disregarding  any  portion of an increase in spending in formulating the
contingency budget.
  [d.] C. Notwithstanding any other provision of law  to  the  contrary,
the  trustees  or board of education shall not be authorized to amend or
revise a final contingency budget where such amendment or revision would
result in total spending in excess of the spending limitation  in  para-
graph  (a)  of  this subdivision; provided that the trustees or board of
education shall be authorized to add appropriations for[:
  (i) the categories of expenditures excluded from the spending  limita-
tions  set  forth  in  paragraph  (b)  of  this  subdivision, subject to
approval of the qualified voters where required by law;
  (ii) expenditures resulting from an actual increase in enrollment over
the  projected  enrollment  used  to  develop  the  contingency  budget,
provided  that  where such actual enrollment is less than such projected
enrollment, it shall be the duty of the trustees or board  of  education
to use such excess funds to reduce taxes; and
  (iii)]  the  expenditure of gifts, grants in aid for specific purposes
or for general use or insurance proceeds authorized pursuant to subdivi-
sion two of [sudivision] SECTION  seventeen  hundred  eighteen  of  this
chapter in addition to that which has been previously budgeted.
  [e. For the purposes of this subdivision:
  (i)  "Base school year" shall mean the school year immediately preced-
ing the school year for which the contingency budget is prepared.
  (ii) "Consumer price index" shall mean the percentage that  represents
the  average  of  the  national consumer price indexes determined by the
United States department of labor, for the twelve month period preceding
January first of the current year.
  (iii) "Current year" shall mean the calendar year in which the  school
district budget is submitted for a vote of the qualified voters.
  (iv)  "Resident public school district enrollment shall mean the resi-
dent public school enrollment of the school district as defined in para-
graph n of subdivision one of section thirty-six  hundred  two  of  this
chapter.

S. 5856                            12                            A. 8518

  (v)  "Total  spending"  shall mean the total amount appropriated under
the school district budget for the school year.]
  S  4.  Paragraph  a  of subdivision 7 of section 1608 of the education
law, as amended by chapter 238 of the laws of 2007, is amended  to  read
as follows:
  a.  Each  year,  commencing with the proposed budget for the two thou-
sand--two thousand one school year, the trustee  or  board  of  trustees
shall prepare a property tax report card, pursuant to regulations of the
commissioner, and shall make it publicly available by transmitting it to
local  newspapers  of general circulation, appending it to copies of the
proposed budget made publicly available as required by  law,  making  it
available  for distribution at the annual meeting, and otherwise dissem-
inating it as required by  the  commissioner.  Such  report  card  shall
include: (i) the amount of total spending and total estimated school tax
levy  that  would  result  from  adoption of the proposed budget and the
percentage increase or decrease in total spending and total  school  tax
levy  from the school district budget for the preceding school year; and
(ii) THE DISTRICT'S TAX LEVY LIMIT DETERMINED PURSUANT  TO  SECTION  TWO
THOUSAND  TWENTY-THREE-A  OF  THIS  TITLE,  AND THE ESTIMATED SCHOOL TAX
LEVY, EXCLUDING ANY LEVY NECESSARY TO SUPPORT THE EXPENDITURES  PURSUANT
TO  SUBPARAGRAPHS  (I) THROUGH (IV) OF PARAGRAPH I OF SUBDIVISION TWO OF
SECTION TWO THOUSAND TWENTY-THREE-A OF THIS  TITLE,  THAT  WOULD  RESULT
FROM ADOPTION OF THE PROPOSED BUDGET; AND (III) the projected enrollment
growth  for  the  school  year for which the budget is prepared, and the
percentage change in enrollment from the previous year; and [(iii)] (IV)
the percentage increase in the consumer price index, as defined in para-
graph c of this subdivision; and [(iv)] (V) the projected amount of  the
unappropriated  unreserved  fund  balance  that  will be retained if the
proposed budget is adopted, the projected amount of  the  reserved  fund
balance,  the  projected  amount  of  the appropriated fund balance, the
percentage of the proposed budget  that  the  unappropriated  unreserved
fund  balance  represents,  the  actual  unappropriated  unreserved fund
balance retained in the school district budget for the preceding  school
year, and the percentage of the school district budget for the preceding
school  year  that  the  actual  unappropriated  unreserved fund balance
represents.
  S 5. Paragraph a of subdivision 7 of section  1716  of  the  education
law,  as  amended by chapter 238 of the laws of 2007, is amended to read
as follows:
  a. Each year, commencing with the proposed budget for  the  two  thou-
sand--two thousand one school year, the board of education shall prepare
a property tax report card, pursuant to regulations of the commissioner,
and shall make it publicly available by transmitting it to local newspa-
pers  of  general  circulation,  appending  it to copies of the proposed
budget made publicly available as required by law, making  it  available
for  distribution  at the annual meeting, and otherwise disseminating it
as required by the commissioner. Such report card shall include: (i) the
amount of total spending and total estimated school tax levy that  would
result  from adoption of the proposed budget and the percentage increase
or decrease in total spending and total school tax levy from the  school
district  budget  for the preceding school year; and (ii) THE DISTRICT'S
TAX  LEVY  LIMIT   DETERMINED   PURSUANT   TO   SECTION   TWO   THOUSAND
TWENTY-THREE-A OF THIS TITLE, AND THE ESTIMATED SCHOOL TAX LEVY, EXCLUD-
ING  ANY LEVY NECESSARY TO SUPPORT THE EXPENDITURES PURSUANT TO SUBPARA-
GRAPHS (I) THROUGH (IV) OF PARAGRAPH I OF SUBDIVISION TWO OF SECTION TWO
THOUSAND TWENTY-THREE-A OF THIS TITLE, THAT WOULD RESULT  FROM  ADOPTION

S. 5856                            13                            A. 8518

OF  THE  PROPOSED  BUDGET; AND (III) the projected enrollment growth for
the school year for which the budget is  prepared,  and  the  percentage
change  in  enrollment  from  the  previous  year;  and [(iii)] (IV) the
percentage increase in the consumer price index, as defined in paragraph
c  of this subdivision; and [(iv)] (V) the projected amount of the unap-
propriated unreserved fund balance that will be retained if the proposed
budget is adopted, the projected amount of the  reserved  fund  balance,
the projected amount of the appropriated fund balance, the percentage of
the  proposed  budget  that  the  unappropriated unreserved fund balance
represents, the actual unappropriated unreserved fund  balance  retained
in  the  school  district  budget for the preceding school year, and the
percentage of the school district budget for the preceding  school  year
that the actual unappropriated unreserved fund balance represents.
  S  6.  Section  2008  of  the education law is amended by adding a new
subdivision 3 to read as follows:
  3. NOTWITHSTANDING ANY OTHER PROVISION OF LAW  TO  THE  CONTRARY,  ANY
PROPOSITION  SUBMITTED  BY  THE  VOTERS THAT REQUIRES THE EXPENDITURE OF
MONEY SHALL BE SUBJECT TO THE REQUIREMENTS SET FORTH IN SUBDIVISION NINE
OF SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART.
  S 7. Section 2022 of the education law, as amended by  section  23  of
part  A  of  chapter  436  of  the laws of 1997, subdivisions 1 and 3 as
amended by section 8 of part C of chapter 58 of the laws of 1998, subdi-
vision 2-a as amended by section 3 of part A of chapter 60 of  the  laws
of  2000, paragraph b of subdivision 2-a as amended by section 5 of part
W of chapter 57 of the laws of 2008, subdivision 4 as amended by section
7 of part M of chapter 57 of the laws of 2005 and subdivision 6 as added
by chapter 61 of the laws of 2003, is amended to read as follows:
  S 2022. Vote on school district budgets and on the election of  school
district trustees and board of education members. 1. Notwithstanding any
law,  rule  or  regulation  to the contrary, the election of trustees or
members of the board of education, and the vote upon  the  appropriation
of the necessary funds to meet the estimated expenditures, in any common
school  district, union free school district, central school district or
central high school district shall be held at  the  annual  meeting  and
election  on  the  third  Tuesday  in  May, provided, however, that such
election shall be held on the second Tuesday in May if the  commissioner
at  the  request  of  a local school board certifies no later than March
first that such election  would  conflict  with  religious  observances.
[When  such  election or vote is taken by recording the ayes and noes of
the qualified voters attending, a majority of the qualified voters pres-
ent and voting, by a hand or voice vote, may determine to  take  up  the
question  of  voting  the necessary funds to meet the estimated expendi-
tures for a specific item separately, and the qualified  voters  present
and  voting  may  increase  the  amount of any estimated expenditures or
reduce the same, except for teachers' salaries, and the ordinary contin-
gent expenses of the schools.] The sole trustee, board  of  trustees  or
board  of education of every common, union free, central or central high
school district and every city school district  to  which  this  article
applies  shall  hold  a budget hearing not less than seven nor more than
fourteen days prior to  the  annual  meeting  and  election  or  special
district  meeting  at  which  a school budget vote will occur, and shall
prepare and present to the voters at  such  budget  hearing  a  proposed
school district budget for the ensuing school year.
  2.  Except as provided in subdivision four of this section, nothing in
this section shall preclude the trustees or board of education, in their
discretion, from submitting  additional  items  of  expenditure  to  the

S. 5856                            14                            A. 8518

voters  for approval as separate propositions or the voters from submit-
ting propositions pursuant to [section] SECTIONS two thousand eight  and
two  thousand  thirty-five of this [article] PART; PROVIDED HOWEVER THAT
SUCH  PROPOSITIONS  SHALL  BE  SUBJECT  TO THE REQUIREMENTS SET FORTH IN
SUBDIVISION NINE OF SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART.
  2-a. Every common, union free, central, central high  school  district
and  city  school  district  to  which this article applies shall mail a
school budget notice to all qualified  voters  of  the  school  district
after  the  date of the budget hearing, but no later than six days prior
to the annual meeting and election or special district meeting at  which
a  school budget vote will occur. The school budget notice shall compare
the percentage increase or decrease in total spending under the proposed
budget over total spending under the school district budget adopted  for
the current school year, with the percentage increase or decrease in the
consumer  price  index,  from  January first of the prior school year to
January first of the current school year, and  shall  also  include  the
information  required  by  paragraphs  a  and b of this subdivision. The
notice shall also set forth the date, time and place of the school budg-
et vote, in the same manner as in the  notice  of  annual  meeting,  AND
SHALL ALSO INCLUDE THE DISTRICT'S TAX LEVY LIMIT PURSUANT TO SECTION TWO
THOUSAND TWENTY-THREE-A OF THIS PART, AND THE ESTIMATED SCHOOL TAX LEVY,
EXCLUDING  ANY  LEVY  NECESSARY  TO SUPPORT THE EXPENDITURES PURSUANT TO
SUBPARAGRAPHS (I) THROUGH (IV) OF PARAGRAPH  I  OF  SUBDIVISION  TWO  OF
SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART, THAT WOULD RESULT FROM
ADOPTION  OF  THE  PROPOSED  BUDGET.  Such  notice  shall  be  in a form
prescribed by the commissioner.
  a. Commencing with the proposed budget for the two  thousand  one--two
thousand  two  school year, such notice shall also include a description
of how total spending and the tax levy resulting from the proposed budg-
et would compare with a projected contingency budget adopted pursuant to
section two thousand twenty-three of this article,  assuming  that  such
contingency  budget  is  adopted  on  the  same  day  as the vote on the
proposed budget. Such comparison shall be  in  total  and  by  component
(program,  capital and administrative), and shall include a statement of
the assumptions made in estimating the projected contingency budget.
  b. Commencing with the proposed budget for the two thousand eight--two
thousand nine school year, such notice shall also include, in  a  format
prescribed  by  the  commissioner,  an  estimate of the tax savings that
would be available to an eligible homeowner under the basic  school  tax
relief  (STAR)  exemption authorized by section four hundred twenty-five
of the real property tax law if the proposed budget were  adopted.  Such
estimate  shall be made in the manner prescribed by the commissioner, in
consultation with the office of real property services.
  3. In all elections for trustees or members of boards of education  or
votes  involving  the  expenditure  of money, or authorizing the levy of
taxes, the vote thereon shall be by ballot, or, in school districts that
prior to nineteen hundred ninety-eight conducted their vote at the annu-
al meeting, may be ascertained by taking and recording the ayes and noes
of such qualified voters attending and voting at such district meetings.
  4. THE BUDGET ADOPTION PROCESS SHALL CONFORM TO THE  REQUIREMENTS  SET
FORTH  IN SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART. In the event
that the original proposed budget is not approved  by  the  voters,  the
sole  trustee,  trustees  or board of education may adopt a final budget
pursuant to subdivision five of this section or resubmit to  the  voters
the  original  or  a  revised  budget  pursuant  to subdivision three of
section two thousand seven of this part. Upon one defeat of such  resub-

S. 5856                            15                            A. 8518

mitted  budget,  the  sole trustee, trustees or board of education shall
adopt a final budget pursuant  to  subdivision  five  of  this  section.
Notwithstanding  any  other provision of law to the contrary, the school
district  budget  for any school year, or any part of such budget or any
propositions involving the expenditure of money  for  such  school  year
shall  not  be  submitted  for  a vote of the qualified voters more than
twice.
  5. If the  qualified  voters  fail  to  approve  the  proposed  school
district  budget upon resubmission or upon a determination not to resub-
mit for a second vote pursuant to subdivision four of this section,  the
sole trustee, trustees or board of education, after applying thereto the
public  school  moneys  and  other moneys received or to be received for
that purpose, shall levy a tax for the sum necessary for teachers' sala-
ries and other ordinary  contingent  expenses  in  accordance  with  the
provisions of this subdivision and [section] SECTIONS two thousand twen-
ty-three AND TWO THOUSAND TWENTY-THREE-A of this article.
  6. Notwithstanding the provisions of subdivision four of section eigh-
teen  hundred  four and subdivision five of section nineteen hundred six
of this title, subdivision one of section two thousand two of this arti-
cle, subdivision one of this section, subdivision two of  section  twen-
ty-six hundred one-a of this title and any other provision of law to the
contrary,  the  annual  district  meeting  and election of every common,
union free, central and central high  school  district  and  the  annual
meeting  of  every city school district in a city having a population of
less than one hundred twenty-five thousand inhabitants that is scheduled
to be held on the third Tuesday of May, two  thousand  three  is  hereby
adjourned until the first Tuesday in June, two thousand three. The trus-
tees  or  board  of education of each such school district shall provide
notice of such adjourned meeting to the qualified voters in  the  manner
prescribed  for  notice  of  the  annual  meeting, and such notice shall
provide for an adjourned budget hearing. The adjourned district  meeting
or  district  meeting and election shall be deemed the annual meeting or
annual meeting and election of the district for all purposes under  this
title  and  the date of the adjourned meeting shall be deemed the state-
wide uniform voting day for all purposes under  this  title.    Notwith-
standing  the provisions of subdivision seven of section sixteen hundred
eight or subdivision seven of section seventeen hundred sixteen of  this
title or any other provision of law, rule or regulation to the contrary,
in two thousand three the property tax report card shall be submitted to
the  department  no  later  than  twenty  days  prior to the date of the
adjourned meeting and the department shall make its  compilation  avail-
able electronically at least seven days prior to such date.
  S  8.    Section  2035 of the education law is amended by adding a new
subdivision 3 to read as follows:
  3. ANY PROPOSITION SUBMITTED PURSUANT TO THIS SECTION SHALL BE SUBJECT
TO THE REQUIREMENTS SET FORTH IN SUBDIVISION NINE OF SECTION  TWO  THOU-
SAND TWENTY-THREE-A OF THIS PART.
  S  9.  Section 2601-a of the education law, as added by chapter 171 of
the laws of 1996, subdivision 2 as amended by section 6 and  subdivision
4  as  amended by section 8 of part M of chapter 57 of the laws of 2005,
subdivision 3 as amended by chapter 640 of the laws of 2008, subdivision
5 as amended by section 29 of part A of chapter 436 of the laws of 1997,
subdivision 6 as amended and subdivision 7 as added by  chapter  474  of
the laws of 1996, is amended to read as follows:
  S  2601-a.  Procedures  for  adoption  of school budgets in small city
school districts. 1. The board of education of each city school district

S. 5856                            16                            A. 8518

subject to this article shall provide for the submission of a budget for
approval of the voters pursuant to the provisions of this section AND IN
ACCORDANCE WITH THE REQUIREMENTS SET FORTH IN SECTION TWO THOUSAND TWEN-
TY-THREE-A OF THIS TITLE.
  2.  The board of education shall conduct all annual and special school
district meetings for the purpose of adopting a school  district  budget
in  the  same  manner as a union free school district in accordance with
the provisions of article forty-one of this title, except  as  otherwise
provided  by  this section. The annual meeting and election of each such
city school district shall be held on the third Tuesday of May  in  each
year,  provided,  however that such annual meeting and election shall be
held on the second Tuesday in May if the commissioner at the request  of
a  local  school  board  certifies  no  later than March first that such
election would conflict with religious observances, and any school budg-
et revote shall be held on the date and in the same manner specified  in
subdivision  three  of  section  two  thousand  seven of this title. The
provisions of this article, and where applicable subdivisions  nine  and
nine-a  of  section twenty-five hundred two of this title, governing the
qualification and registration of voters, and procedures for  the  nomi-
nation  and election of members of the board of education shall continue
to apply, and shall govern the qualification and registration of  voters
and  voting procedures with respect to the adoption of a school district
budget.
  3.  The board of education shall prepare a  proposed  school  district
budget for the ensuing year in accordance with the provisions of section
seventeen  hundred  sixteen  of  this  chapter, including all provisions
relating to required notices and appendices to the statement of expendi-
tures. No board of education shall incur  a  school  district  liability
except  as  authorized  by  the  provisions of section seventeen hundred
eighteen of this chapter. Such proposed budget  shall  be  presented  in
three components: a program component, a capital component and an admin-
istrative  component  which shall be separately delineated in accordance
with regulations of  the  commissioner  after  consultation  with  local
school  district  officials. The administrative component shall include,
but need not be limited to, office and central administrative  expenses,
traveling  expenses  and  all compensation, salaries and benefits of all
school administrators and supervisors,  including  business  administra-
tors,  superintendents  of  schools  and deputy, assistant, associate or
other superintendents under all existing employment contracts or collec-
tive bargaining agreements, any and all expenditures associated with the
operation of the board of education, the office of the superintendent of
schools, general administration, the school business office,  consulting
costs  not  directly  related  to  direct student services and programs,
planning and all other administrative activities.  The program component
shall include, but need not be limited to, all program  expenditures  of
the school district, including the salaries and benefits of teachers and
any  school  administrators or supervisors who spend a majority of their
time  performing  teaching  duties,  and  all  transportation  operating
expenses.  The  capital component shall include, but need not be limited
to, all transportation capital, debt service,  and  lease  expenditures;
costs  resulting  from  judgments  in  tax certiorari proceedings or the
payment of awards from court judgments, administrative orders or settled
or compromised claims; and all facilities costs of the school  district,
including  facilities  lease  expenditures,  the annual debt service and
total debt for all facilities financed by bonds and notes of the  school
district,  and  the  costs of construction, acquisition, reconstruction,

S. 5856                            17                            A. 8518

rehabilitation or improvement of school buildings,  provided  that  such
budget  shall  include a rental, operations and maintenance section that
includes base rent costs, total rent costs,  operation  and  maintenance
charges,  cost  per  square  foot for each facility leased by the school
district, and any and all expenditures associated with  custodial  sala-
ries  and  benefits, service contracts, supplies, utilities, and mainte-
nance and repairs of school facilities. For the purposes of the develop-
ment of a budget for  the  nineteen  hundred  ninety-seven--ninety-eight
school  year, the board of education shall separate its program, capital
and administrative costs for the  nineteen  hundred  ninety-six--ninety-
seven  school year in the manner as if the budget for such year had been
presented in three components. Except as provided in subdivision four of
this section, nothing in this section shall preclude the board,  in  its
discretion,  from  submitting  additional  items  of  expenditure to the
voters for approval as separate propositions or the voters from  submit-
ting  propositions pursuant to sections two thousand eight and two thou-
sand thirty-five of this chapter SUBJECT TO THE REQUIREMENTS  SET  FORTH
IN SUBDIVISION NINE OF SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART.
  4.   THE BUDGET ADOPTION PROCESS SHALL CONFORM TO THE REQUIREMENTS SET
FORTH IN SECTION TWO THOUSAND TWENTY-THREE-A OF THIS TITLE. In the event
the qualified voters of the district reject the budget proposed pursuant
to subdivision three of this section,  the  board  may  propose  to  the
voters  a  revised  budget  pursuant to subdivision three of section two
thousand seven of this title or may adopt a contingency budget  pursuant
to  subdivision five of this section and subdivision five of section two
thousand twenty-two of this title.  The school district budget  for  any
school  year,  or  any part of such budget or any propositions involving
the expenditure of money for such school year shall not be submitted for
a vote of the qualified voters more than twice. In the event the  quali-
fied  voters  reject  the  resubmitted  budget,  the board shall adopt a
contingency budget in accordance with subdivision five of  this  section
and  subdivision  five  of  such section two thousand twenty-two of this
title.
  5. If the qualified voters fail or refuse to vote the sum estimated to
be necessary  for  teachers'  salaries  and  other  ordinary  contingent
expenses,  the board shall adopt a contingency budget in accordance with
this subdivision and shall levy a tax  for  that  portion  of  such  sum
remaining  after  applying thereto the moneys received or to be received
from state, federal or other sources, in the same manner as if the budg-
et had been approved by the qualified voters; subject to the limitations
imposed in subdivision four of section two thousand twenty-three of this
chapter, SUBDIVISION EIGHT OF SECTION  TWO  THOUSAND  TWENTY-THREE-A  OF
THIS  TITLE and this subdivision. The administrative component shall not
comprise a greater percentage of the contingency budget exclusive of the
capital component than the lesser of (1) the percentage the  administra-
tive  component  had comprised in the prior year budget exclusive of the
capital component; or (2) the percentage  the  administrative  component
had  comprised  in  the  last  proposed defeated budget exclusive of the
capital component. Such contingency budget shall include the sum  deter-
mined by the board to be necessary for:
  (a)  teachers'  salaries, including the salaries of all members of the
teaching and supervising staff;
  (b) items of expense specifically authorized by statute to be incurred
by the board of education, including, but not limited  to,  expenditures
for transportation to and from regular school programs included as ordi-
nary  contingent  expenses  in subdivision twelve of section twenty-five

S. 5856                            18                            A. 8518

hundred three of this  chapter,  expenditures  for  textbooks,  required
services for non-public school students, school health services, special
education  services,  kindergarten  and nursery school programs, and the
district's  share  of  the  administrative  costs  and costs of services
provided by a board of cooperative educational services;
  (c) items of expense for legal obligations of the district, including,
but not limited to, contractual obligations, debt service, court  orders
or judgments, orders of administrative bodies or officers, and standards
and  requirements of the board of regents and the commissioner that have
the force and effect of law;
  (d) the purchase of library books and  other  instructional  materials
associated with a library;
  (e) items of expense necessary to maintain the educational programs of
the  district,  preserve  the  property  of  the district or protect the
health and safety of students and staff, including, but not limited  to,
support  services,  pupil personnel services, the necessary salaries for
the  necessary  number  of  non-teaching  employees,   necessary   legal
expenses,  water  and utility charges, instructional supplies for teach-
ers' use, emergency repairs, temporary  rental  of  essential  classroom
facilities,  and expenditures necessary to advise school district voters
concerning school matters; and
  (f) expenses incurred for interschool athletics, field trips and other
extracurricular activities; and
  (g) any other item of expense determined by the commissioner to be  an
ordinary contingent expense in any school district.
  6.  The  commissioner  shall determine appeals raising questions as to
what items of expenditure are ordinary contingent expenses  pursuant  to
subdivision five of this section in accordance with section two thousand
twenty-four and three hundred ten of this chapter.
  7.  Each  year, the board of education shall prepare a school district
report card, pursuant to regulations of the commissioner, and shall make
it publicly available by transmitting it to local newspapers of  general
circulation, appending it to copies of the proposed budget made publicly
available  as  required  by law, making it available for distribution at
the annual meeting, and otherwise disseminating it as  required  by  the
commissioner.  Such  report  card shall include measures of the academic
performance of the school district, on a school  by  school  basis,  and
measures of the fiscal performance of the district, as prescribed by the
commissioner.  Pursuant  to  regulations of the commissioner, the report
card shall also compare these measures to  statewide  averages  for  all
public  schools, and statewide averages for public schools of comparable
wealth and need, developed by the commissioner. Such report  card  shall
include,  at a minimum, any information on the school district regarding
pupil performance and expenditure per pupil required to be  included  in
the  annual  report  by  the regents to the governor and the legislature
pursuant to section two hundred fifteen-a of this chapter; and any other
information required by the commissioner. School districts  (i)  identi-
fied  as  having  fifteen  percent  or more of their students in special
education, or (ii) which have fifty percent or more  of  their  students
with  disabilities  in  special  education  programs  or  services sixty
percent or more of the school day in a general  education  building,  or
(iii)  which have eight percent or more of their students with disabili-
ties in special education programs in public or private separate  educa-
tional  settings  shall  indicate  on  their school district report card
their respective percentages as defined in this paragraph and paragraphs
(i) and (ii) of this subdivision as compared to the statewide average.

S. 5856                            19                            A. 8518

  S 10. Paragraph b-1 of subdivision 4 of section 3602 of the  education
law,  as  amended  by  section 26 of part A of chapter 58 of the laws of
2011, is amended to read as follows:
  b-1.  Notwithstanding  any other provision of law to the contrary, for
the two thousand seven--two thousand eight  [through]  school  year  and
thereafter, the additional amount payable to each school district pursu-
ant  to  this  subdivision  in the current year as total foundation aid,
after deducting the total foundation aid base, shall be deemed  a  state
grant in aid identified by the commissioner for general use for purposes
of [sections] SECTION seventeen hundred eighteen [and two thousand twen-
ty-three] of this chapter.
  S  11.  Paragraph  a of subdivision 1 of section 3635 of the education
law, as amended by chapter 69 of the laws of 1992, is amended to read as
follows:
  a. Sufficient transportation facilities (including the  operation  and
maintenance  of motor vehicles) shall be provided by the school district
for all the children residing within the school district to and from the
school they legally attend, who  are  in  need  of  such  transportation
because  of  the  remoteness  of  the  school  to  the  child or for the
promotion of the best interest of such children.    Such  transportation
shall be provided for all children attending grades kindergarten through
eight  who  live  more than two miles from the school which they legally
attend and for all children attending grades  nine  through  twelve  who
live more than three miles from the school which they legally attend and
shall be provided for each such child up to a distance of fifteen miles,
the distances in each case being measured by the nearest available route
from  home  to school. The cost of providing such transportation between
two or three miles, as the case may  be,  and  fifteen  miles  shall  be
considered  for  the  purposes  of  this chapter to be a charge upon the
district and an ordinary contingent expense of the district. Transporta-
tion for a lesser distance than  two  miles  in  the  case  of  children
attending  grades  kindergarten through eight or three miles in the case
of children attending grades nine  through  twelve  and  for  a  greater
distance  than  fifteen  miles  may be provided by the district WITH THE
APPROVAL OF THE QUALIFIED VOTERS, and, if  provided,  shall  be  offered
equally  to all children in like circumstances residing in the district;
provided, however, that this requirement shall not apply to  transporta-
tion  offered  pursuant  to  section thirty-six hundred thirty-five-b of
this article.
  S 12. Nothing contained in this act shall  impair  or  invalidate  the
powers  or  duties,  as  authorized  by law, of a control board, interim
finance authority or fiscal stability authority including such powers or
duties that may require the tax levy limit, as that term is  defined  in
section one or section two of this act, to be exceeded.
  S  13. This act shall take effect immediately; provided, however, that
sections two through eleven of this act shall take effect July  1,  2011
and shall first apply to school district budgets and the budget adoption
process  for  the  2012-13  school  year; and shall continue to apply to
school district budgets and the budget adoption process for  any  school
year  beginning in any calendar year during which this act is in effect;
provided further, that if section 26 of part A of chapter 58 of the laws
of 2011 shall not have taken effect on or before such date then  section
ten  of  this  act  shall  take  effect on the same date and in the same
manner as such chapter of the  laws  of  2011,  takes  effect;  provided
further,  that  section one of this act shall first apply to the levy of
taxes by local governments for the fiscal year that begins in  2012  and

S. 5856                            20                            A. 8518

shall  continue  to  apply to the levy of taxes by local governments for
any fiscal year beginning in any calendar year during which this act  is
in  effect;  provided, further, that this act shall remain in full force
and  effect  at  a  minimum  until and including June 15, 2016 and shall
remain in effect thereafter only so long as the public emergency requir-
ing the regulation and control of residential rents  and  evictions  and
all  such  laws  providing  for  such regulation and control continue as
provided in subdivision 3 of section  1  of  the  local  emergency  rent
control  act,  sections  26-501, 26-502 and 26-520 of the administrative
code of the city of New York, section 17 of chapter 576 of the  laws  of
1974  and  subdivision 2 of section 1 of chapter 274 of the laws of 1946
constituting the emergency housing rent control law, and section  10  of
chapter  555  of the laws of 1982, amending the general business law and
the administrative code of the city of New York relating to  conversions
of  residential property  to cooperative or condominium ownership in the
city of New York as such laws are continued by chapter 93 of the laws of
2011 and as such sections are amended from time to time.

                                 PART B

  Section 1. Short title. This act shall be known and may  be  cited  as
the "rent act of 2011."
  S  1-a.  Section  17  of  chapter 576 of the laws of 1974 amending the
emergency housing rent control  law  relating  to  the  control  of  and
stabilization  of rent in certain cases, as amended by chapter 93 of the
laws of 2011, is amended to read as follows:
  S 17. Effective date.   This act shall  take  effect  immediately  and
shall  remain  in full force and effect until and including the [twenty-
third] FIFTEENTH day of June [2011] 2015; except that sections  two  and
three  shall take effect with respect to any city having a population of
one million or more and section one shall take effect  with  respect  to
any  other  city,  or any town or village whenever the local legislative
body of a city, town or village determines the  existence  of  a  public
emergency  pursuant  to section three of the emergency tenant protection
act of nineteen seventy-four, as enacted by section four  of  this  act,
and  provided  that  the housing accommodations subject on the effective
date of this act to stabilization pursuant to the  New  York  city  rent
stabilization law of nineteen hundred sixty-nine shall remain subject to
such law upon the expiration of this act.
  S  2.  Subdivision  2  of section 1 of chapter 274 of the laws of 1946
constituting the emergency housing rent control law, as amended by chap-
ter 93 of the laws of 2011, is amended to read as follows:
  2. The provisions  of  this  act,  and  all  regulations,  orders  and
requirements  thereunder shall remain in full force and effect until and
including June [23, 2011] 15, 2015.
  S 3. Section 2 of chapter 329 of the laws of 1963 amending  the  emer-
gency housing rent control law relating to recontrol of rents in Albany,
as  amended  by  chapter  93  of the laws of 2011, is amended to read as
follows:
  S 2. This act shall take effect  immediately  and  the  provisions  of
subdivision  6  of section 12 of the emergency housing rent control law,
as added by this act, shall remain in full force and  effect  until  and
including June [23, 2011] 15, 2015.
  S 4. Section 10 of chapter 555 of the laws of 1982 amending the gener-
al  business  law  and  the  administrative code of the city of New York
relating to conversion of residential property to cooperative or  condo-

S. 5856                            21                            A. 8518

minium  ownership  in  the city of New York, as amended by chapter 93 of
the laws of 2011, is amended to read as follows:
  S  10.  This  act  shall  take  effect immediately; provided, that the
provisions of sections one, two and nine of this  act  shall  remain  in
full force and effect only until and including June [23, 2011] 15, 2015;
provided  further that the provisions of section three of this act shall
remain in full force and effect only so long  as  the  public  emergency
requiring  the regulation and control of residential rents and evictions
continues as provided in subdivision 3 of section 1 of the  local  emer-
gency  housing rent control act; provided further that the provisions of
sections four, five, six and seven of this act shall expire  in  accord-
ance with the provisions of section 26-520 of the administrative code of
the city of New York as such section of the administrative code is, from
time  to  time, amended; provided further that the provisions of section
26-511 of the administrative code of the city of New York, as amended by
this act, which the New York City Department of Housing Preservation and
Development must find are contained in  the  code  of  the  real  estate
industry  stabilization association of such city in order to approve it,
shall be deemed contained therein as of the effective date of this  act;
and provided further that any plan accepted for filing by the department
of  law on or before the effective date of this act shall continue to be
governed by the provisions of section 352-eeee of the  general  business
law  as they had existed immediately prior to the effective date of this
act.
  S 5. Section 4 of chapter 402 of the laws of 1983 amending the general
business law relating to conversion of rental  residential  property  to
cooperative  or  condominium  ownership in certain municipalities in the
counties of Nassau, Westchester and Rockland, as amended by  chapter  93
of the laws of 2011, is amended to read as follows:
  S  4.  This  act  shall  take  effect  immediately; provided, that the
provisions of sections one and three of this act shall  remain  in  full
force  and effect only until and including June [23, 2011] 15, 2015; and
provided further that any plan accepted for filing by the department  of
law  on  or  before  the effective date of this act shall continue to be
governed by the provisions of section 352-eee of  the  general  business
law  as they had existed immediately prior to the effective date of this
act.
  S 6. Subdivision 6 of section 46 of chapter 116 of the  laws  of  1997
constituting the rent regulation reform act of 1997, as amended by chap-
ter 93 of the laws of 2011, is amended to read as follows:
  6.  sections  twenty-eight, twenty-eight-a, twenty-eight-b and twenty-
eight-c of this act shall expire and be deemed repealed after June  [23,
2011] 15, 2015;
  S  7. Paragraph 5-a of subdivision c of section 26-511 of the adminis-
trative code of the city of New York, as added by  chapter  116  of  the
laws of 1997, is amended to read as follows:
  (5-a)  provides  that,  notwithstanding any provision of this chapter,
the legal regulated rent for any vacancy lease entered  into  after  the
effective  date  of  this  paragraph shall be as hereinafter provided in
this paragraph. The previous  legal  regulated  rent  for  such  housing
accommodation  shall  be  increased by the following: (i) if the vacancy
lease is for a term of two years, twenty percent of the  previous  legal
regulated  rent;  or (ii) if the vacancy lease is for a term of one year
the increase shall be twenty percent of  the  previous  legal  regulated
rent  less  an  amount  equal to the difference between (a) the two year
renewal lease guideline promulgated by the guidelines board of the  city

S. 5856                            22                            A. 8518

of New York applied to the previous legal regulated rent and (b) the one
year  renewal lease guideline promulgated by the guidelines board of the
city of New York applied to the previous legal regulated rent. In  addi-
tion, if the legal regulated rent was not increased with respect to such
housing  accommodation  by  a  permanent  vacancy allowance within eight
years prior to a vacancy lease executed on or after the  effective  date
of  this paragraph, the legal regulated rent may be further increased by
an amount equal to the product resulting from multiplying such  previous
legal  regulated rent by six-tenths of one percent and further multiply-
ing the amount of rent increase resulting therefrom by  the  greater  of
(A)  the  number  of  years  since  the imposition of the last permanent
vacancy allowance, or (B) if the rent was not increased by  a  permanent
vacancy allowance since the housing accommodation became subject to this
chapter,  the  number  of years that such housing accommodation has been
subject to this chapter. Provided that if the previous  legal  regulated
rent  was less than three hundred dollars the total increase shall be as
calculated above plus one hundred dollars per month. Provided,  further,
that  if  the  previous  legal regulated rent was at least three hundred
dollars and no more than five hundred dollars  in  no  event  shall  the
total  increase  pursuant  to  this  paragraph  be less than one hundred
dollars per month. Such increase shall  be  in  lieu  of  any  allowance
authorized  for the one or two year renewal component thereof, but shall
be in addition to any other increases authorized pursuant to this  chap-
ter including an adjustment based upon a major capital improvement, or a
substantial  modification  or increase of dwelling space or services, or
installation of new  equipment  or  improvements  or  new  furniture  or
furnishings provided in or to the housing accommodation pursuant to this
section.    THE  INCREASE AUTHORIZED IN THIS PARAGRAPH MAY NOT BE IMPLE-
MENTED MORE THAN ONE TIME IN  ANY  CALENDAR  YEAR,  NOTWITHSTANDING  THE
NUMBER OF VACANCY LEASES ENTERED INTO IN SUCH YEAR.
  S  8.  Subdivision  (a-1) of section 10 of section 4 of chapter 576 of
the laws of 1974, constituting the emergency tenant  protection  act  of
nineteen  seventy-four,  as added by chapter 116 of the laws of 1997, is
amended to read as follows:
  (a-1) provides that, notwithstanding any provision of  this  act,  the
legal regulated rent for any vacancy lease entered into after the effec-
tive  date  of  this subdivision shall be as hereinafter set forth.  The
previous legal regulated rent for such housing  accommodation  shall  be
increased  by  the  following: (i) if the vacancy lease is for a term of
two years, twenty percent of the previous legal regulated rent; or  (ii)
if  the  vacancy  lease  is for a term of one year the increase shall be
twenty percent of the previous legal regulated rent less an amount equal
to the difference between (a)  the  two  year  renewal  lease  guideline
promulgated  by  the guidelines board of the county in which the housing
accommodation is located applied to the previous  legal  regulated  rent
and  (b)  the one year renewal lease guideline promulgated by the guide-
lines board of the county in which the housing accommodation is  located
applied  to the previous legal regulated rent. In addition, if the legal
regulated rent was not increased with respect to such  housing  accommo-
dation  by  a  permanent vacancy allowance within eight years prior to a
vacancy lease executed on or after the effective date of  this  subdivi-
sion,  the  legal  regulated  rent may be further increased by an amount
equal to the product resulting  from  multiplying  such  previous  legal
regulated  rent by six-tenths of one percent and further multiplying the
amount of rent increase resulting therefrom by the greater  of  (A)  the
number  of  years  since  the  imposition  of the last permanent vacancy

S. 5856                            23                            A. 8518

allowance, or (B) if the rent was not increased by a  permanent  vacancy
allowance  since  the  housing accommodation became subject to this act,
the number of years that such housing accommodation has been subject  to
this  act.  Provided  that if the previous legal regulated rent was less
than three hundred dollars the total increase  shall  be  as  calculated
above plus one hundred dollars per month. Provided, further, that if the
previous  legal regulated rent was at least three hundred dollars and no
more than five hundred dollars in no  event  shall  the  total  increase
pursuant to this subdivision be less than one hundred dollars per month.
Such  increase  shall be in lieu of any allowance authorized for the one
or two year renewal component thereof, but shall be in addition  to  any
other  increases authorized pursuant to this act including an adjustment
based upon a major capital improvement, or a substantial modification or
increase of dwelling space or services, or installation of new equipment
or improvements or new furniture or furnishings provided in  or  to  the
housing accommodation pursuant to section six of this act.  THE INCREASE
AUTHORIZED IN THIS SUBDIVISION MAY NOT BE IMPLEMENTED MORE THAN ONE TIME
IN  ANY  CALENDAR  YEAR,  NOTWITHSTANDING  THE  NUMBER OF VACANCY LEASES
ENTERED INTO IN SUCH YEAR.
  S 9. Paragraph (n) of subdivision 2 of section 2 of chapter 274 of the
laws of 1946, constituting the emergency housing rent  control  law,  as
amended  by  chapter  82  of  the  laws  of  2003, is amended to read as
follows:
  (n) any housing accommodation with a  maximum  rent  of  two  thousand
dollars or more per month at any time between the effective date of this
paragraph  and  October first, nineteen hundred ninety-three which is or
becomes vacant on or after the effective date of this paragraph[,];  or,
FOR  any  housing  accommodation  with  a  maximum  rent of two thousand
dollars or more per month at any time on or after the effective date  of
the  rent regulation reform act of 1997 AND BEFORE THE EFFECTIVE DATE OF
THE RENT ACT OF 2011, which is or becomes vacant on or after the  effec-
tive  date  of  the  rent  regulation  reform act of 1997 AND BEFORE THE
EFFECTIVE DATE OF THE RENT ACT OF 2011.    THIS  EXCLUSION  SHALL  APPLY
REGARDLESS  OF  WHETHER  THE  NEXT TENANT IN OCCUPANCY OR ANY SUBSEQUENT
TENANT IN OCCUPANCY IS CHARGED OR PAYS LESS THAN TWO THOUSAND DOLLARS  A
MONTH;  OR,  FOR  ANY  HOUSING  ACCOMMODATION WITH A MAXIMUM RENT OF TWO
THOUSAND FIVE HUNDRED DOLLARS OR MORE PER MONTH AT ANY TIME ON OR  AFTER
THE  EFFECTIVE  DATE OF THE RENT ACT OF 2011, WHICH IS OR BECOMES VACANT
ON OR AFTER SUCH EFFECTIVE DATE.  This exclusion shall apply  regardless
of  whether  the  next  tenant  in occupancy or any subsequent tenant in
occupancy actually is charged  or  pays  less  than  two  thousand  FIVE
HUNDRED dollars a month.  [This] AN exclusion PURSUANT TO THIS PARAGRAPH
shall not apply, however, to or become effective with respect to housing
accommodations which the commissioner determines or finds that the land-
lord or any person acting on his or her behalf, with intent to cause the
tenant  to  vacate, has engaged in any course of conduct (including, but
not limited to, interruption or  discontinuance  of  required  services)
which  interfered with or disturbed or was intended to interfere with or
disturb the comfort, repose, peace or quiet of the tenant in his or  her
use  or  occupancy  of the housing accommodations and in connection with
such course of conduct, any other general enforcement provision of  this
law shall also apply.
  S 10. Paragraph 13 of subdivision a of section 5 of section 4 of chap-
ter  576  of  the  laws  of  1974,  constituting  the  emergency  tenant
protection act of nineteen seventy-four, as amended by chapter 82 of the
laws of 2003, is amended to read as follows:

S. 5856                            24                            A. 8518

  (13) any housing accommodation with a  legal  regulated  rent  of  two
thousand  dollars  or  more  per month at any time between the effective
date of this paragraph and October first, nineteen hundred  ninety-three
which  is or becomes vacant on or after the effective date of this para-
graph[,];  or, FOR any housing accommodation with a legal regulated rent
of two thousand dollars or more per month at any time on  or  after  the
effective  date of the rent regulation reform act of 1997 AND BEFORE THE
EFFECTIVE DATE OF THE RENT ACT OF 2011, which is or becomes vacant on or
after the effective date of the rent regulation reform act of  1997  AND
BEFORE THE EFFECTIVE DATE OF THE RENT ACT OF 2011.  THIS EXCLUSION SHALL
APPLY  REGARDLESS  OF WHETHER THE NEXT TENANT IN OCCUPANCY OR ANY SUBSE-
QUENT TENANT IN OCCUPANCY IS CHARGED OR  PAYS  LESS  THAN  TWO  THOUSAND
DOLLARS  A  MONTH;  OR, FOR ANY HOUSING ACCOMMODATION WITH A LEGAL REGU-
LATED RENT OF TWO THOUSAND FIVE HUNDRED DOLLARS OR MORE PER MONTH AT ANY
TIME ON OR AFTER THE EFFECTIVE DATE OF THE RENT ACT OF 2011, WHICH IS OR
BECOMES VACANT ON OR AFTER SUCH EFFECTIVE DATE.    [This]  AN  exclusion
PURSUANT  TO  THIS  PARAGRAPH shall apply regardless of whether the next
tenant in occupancy or any subsequent tenant in  occupancy  actually  is
charged  or  pays  less  than two thousand FIVE HUNDRED dollars a month.
Provided however, that [this] AN exclusion PURSUANT  TO  THIS  PARAGRAPH
shall not apply to housing accommodations which became or become subject
to  this act (a) by virtue of receiving tax benefits pursuant to section
four hundred twenty-one-a or four hundred eighty-nine of the real  prop-
erty  tax law, except as otherwise provided in subparagraph (i) of para-
graph (f) of subdivision two of section four hundred twenty-one-a of the
real property tax law, or (b) by virtue of article seven-C of the multi-
ple dwelling law. This paragraph shall not apply, however, to or  become
effective  with respect to housing accommodations which the commissioner
determines or finds that the landlord or any person acting on his or her
behalf, with intent to cause the tenant to vacate, has  engaged  in  any
course  of  conduct  (including,  but  not  limited  to, interruption or
discontinuance of required services) which interfered with or  disturbed
or  was intended to interfere with or disturb the comfort, repose, peace
or quiet of the tenant in his or her use or  occupancy  of  the  housing
accommodations  and in connection with such course of conduct, any other
general enforcement provision of this act shall also apply.
  S 11. Subparagraph (k) of paragraph 2  of  subdivision  e  of  section
26-403 of the administrative code of the city of New York, as amended by
chapter 82 of the laws of 2003, is amended to read as follows:
  (k)  Any  housing accommodation which becomes vacant on or after April
first, nineteen hundred ninety-seven AND BEFORE THE  EFFECTIVE  DATE  OF
THE  RENT  ACT  OF  2011,  and where at the time the tenant vacated such
housing accommodation the maximum rent was two thousand dollars or  more
per  month; or, FOR any housing accommodation which is or becomes vacant
on or after the effective date of the rent regulation reform act of 1997
AND BEFORE THE EFFECTIVE DATE OF THE RENT ACT OF  2011  with  a  maximum
rent  of  two  thousand dollars or more per month.  THIS EXCLUSION SHALL
APPLY REGARDLESS OF WHETHER THE NEXT TENANT IN OCCUPANCY OR  ANY  SUBSE-
QUENT  TENANT  IN  OCCUPANCY  IS  CHARGED OR PAYS LESS THAN TWO THOUSAND
DOLLARS A MONTH; OR, FOR ANY HOUSING ACCOMMODATION WITH A  MAXIMUM  RENT
OF TWO THOUSAND FIVE HUNDRED DOLLARS OR MORE PER MONTH AT ANY TIME ON OR
AFTER  THE  EFFECTIVE  DATE OF THE RENT ACT OF 2011, WHICH IS OR BECOMES
VACANT ON OR AFTER SUCH EFFECTIVE DATE.    This  exclusion  shall  apply
regardless  of  whether  the  next tenant in occupancy or any subsequent
tenant in occupancy actually is charged or pays less than  two  thousand
FIVE  HUNDRED  dollars a month.  Provided however, that [this] AN exclu-

S. 5856                            25                            A. 8518

sion PURSUANT TO THIS SUBPARAGRAPH shall not apply to  housing  accommo-
dations  which became or become subject to this law by virtue of receiv-
ing tax benefits pursuant to section four  hundred  eighty-nine  of  the
real property tax law. This subparagraph shall not apply, however, to or
become  effective  with  respect  to  housing  accommodations  which the
commissioner determines or finds that the landlord or any person  acting
on  his  or  her  behalf, with intent to cause the tenant to vacate, has
engaged in any course of conduct (including, but not limited to,  inter-
ruption or discontinuance of required services) which interfered with or
disturbed  or  was  intended  to  interfere with or disturb the comfort,
repose, peace or quiet of the tenant in his or her use or  occupancy  of
the  housing  accommodations  and  in  connection  with  such  course of
conduct, any other general enforcement provision of this law shall  also
apply.
  S  12.  Section 26-504.2 of the administrative code of the city of New
York, as amended by chapter 116 of the laws of 1997,  subdivision  a  as
amended  by chapter 82 of the laws of 2003 and subdivision b as added by
local law number 12 of the city of  New  York  for  the  year  2000,  is
amended to read as follows:
  S 26-504.2 Exclusion of high rent accommodations. a. "Housing accommo-
dations"  shall  not  include:  any  housing accommodation which becomes
vacant on or after April first, nineteen hundred ninety-seven AND BEFORE
THE EFFECTIVE DATE OF THE RENT ACT OF 2011 and where  at  the  time  the
tenant  vacated  such housing accommodation the legal regulated rent was
two thousand dollars or more per month[,]; or, FOR any housing  accommo-
dation  which is or becomes vacant on or after the effective date of the
rent regulation reform act of 1997 AND BEFORE THE EFFECTIVE DATE OF  THE
RENT ACT OF 2011, with a legal regulated rent of two thousand dollars or
more  per  month.   THIS EXCLUSION SHALL APPLY REGARDLESS OF WHETHER THE
NEXT TENANT IN OCCUPANCY  OR  ANY  SUBSEQUENT  TENANT  IN  OCCUPANCY  IS
CHARGED  OR  PAYS  LESS  THAN  TWO THOUSAND DOLLARS A MONTH; OR, FOR ANY
HOUSING ACCOMMODATION WITH A LEGAL REGULATED RENT OF TWO  THOUSAND  FIVE
HUNDRED  DOLLARS OR MORE PER MONTH AT ANY TIME ON OR AFTER THE EFFECTIVE
DATE OF THE RENT ACT OF 2011, WHICH IS OR BECOMES  VACANT  ON  OR  AFTER
SUCH  EFFECTIVE DATE.   This exclusion shall apply regardless of whether
the next tenant in occupancy or any subsequent tenant in occupancy actu-
ally is charged or pays less than two thousand FIVE  HUNDRED  dollars  a
month.    Provided  however,  that  [this] AN exclusion PURSUANT TO THIS
SUBDIVISION shall not apply to housing accommodations  which  became  or
become  subject  to  this  law  (a)  by virtue of receiving tax benefits
pursuant to section four hundred twenty-one-a or  four  hundred  eighty-
nine  of  the  real  property  tax  law, except as otherwise provided in
subparagraph (i) of paragraph (f) of subdivision  two  of  section  four
hundred  twenty-one-a  of the real property tax law, or (b) by virtue of
article seven-C of the multiple dwelling law.  This  section  shall  not
apply,  however, to or become effective with respect to housing accommo-
dations which the commissioner determines or finds that the landlord  or
any  person acting on his or her behalf, with intent to cause the tenant
to vacate, engaged in any course of conduct (including, but not  limited
to, interruption or discontinuance of required services) which interfer-
ed  with  or  disturbed or was intended to interfere with or disturb the
comfort, repose, peace or quiet of the tenant in his or her use or occu-
pancy of the housing accommodations and in connection with  such  course
of  conduct,  any  other general enforcement provision of this law shall
also apply.

S. 5856                            26                            A. 8518

  b. The owner of any housing accommodation that is not subject to  this
law  pursuant  to  the  provisions  of  subdivision a of this section or
subparagraph k of paragraph 2 of subdivision e of section 26-403 of this
code shall give written notice certified by  such  owner  to  the  first
tenant  of  that  housing accommodation after such housing accommodation
becomes exempt from the provisions of this law  or  the  city  rent  and
rehabilitation  law.  Such notice shall contain the last regulated rent,
the reason that such housing accommodation is not subject to this law or
the city rent and rehabilitation law, a calculation of  how  either  the
rental  amount  charged  when  there  is  no  lease or the rental amount
provided for in the lease has been derived so as to reach  two  thousand
dollars  or  more per month OR, FOR A HOUSING ACCOMMODATION WITH A LEGAL
REGULATED RENT OR MAXIMUM RENT OF TWO THOUSAND FIVE HUNDRED  DOLLARS  OR
MORE  PER  MONTH ON OR AFTER THE EFFECTIVE DATE OF THE RENT ACT OF 2011,
WHICH IS OR BECOMES VACANT ON OR AFTER SUCH EFFECTIVE DATE, WHETHER  THE
NEXT  TENANT IN OCCUPANCY OR ANY SUBSEQUENT TENANT IN OCCUPANCY ACTUALLY
IS CHARGED OR PAYS LESS THAN A LEGAL REGULATED RENT OR MAXIMUM  RENT  OF
TWO  THOUSAND  FIVE  HUNDRED DOLLARS OR MORE PER MONTH, a statement that
the last legal regulated rent or the maximum rent may be verified by the
tenant by  contacting  the  state  division  of  housing  and  community
renewal,  or any successor thereto, and the address and telephone number
of such agency, or any successor thereto. Such notice shall be  sent  by
certified  mail  within thirty days after the tenancy commences or after
the signing of the lease by both  parties,  whichever  occurs  first  or
shall  be  delivered to the tenant at the signing of the lease. In addi-
tion, the owner shall send and certify to  the  tenant  a  copy  of  the
registration  statement  for  such  housing accommodation filed with the
state division of housing and community  renewal  indicating  that  such
housing  accommodation  became exempt from the provisions of this law or
the city rent and rehabilitation law, which form shall include the  last
regulated rent, and shall be sent to the tenant within thirty days after
the  tenancy  commences  or  the  filing of such registration, whichever
occurs later.
  S 13. Subdivision a-2 of section 10 of section 4 of chapter 576 of the
laws of 1974, constituting the emergency tenant protection act of  nine-
teen  seventy-four,  as  added  by  chapter  82  of the laws of 2003, is
amended to read as follows:
  [a-2.] (A-2) Provides that where the amount of  rent  charged  to  and
paid by the tenant is less than the legal regulated rent for the housing
accommodation,  the  amount of rent for such housing accommodation which
may be charged upon renewal or upon vacancy thereof may, at  the  option
of  the owner, be based upon such previously established legal regulated
rent, as adjusted by the most recent applicable guidelines increases and
other increases authorized by law. Where, subsequent  to  vacancy,  such
legal  regulated  rent, as adjusted by the most recent applicable guide-
lines increases and any other increases authorized by law is  two  thou-
sand  dollars  or more per month OR, FOR ANY HOUSING ACCOMMODATION WHICH
IS OR BECOMES VACANT ON OR AFTER THE EFFECTIVE DATE OF THE RENT  ACT  OF
2011, IS TWO THOUSAND FIVE HUNDRED DOLLARS OR MORE PER MONTH, such hous-
ing  accommodation  shall  be  excluded  from the provisions of this act
pursuant to paragraph thirteen of subdivision a of section five of  this
act.
  S  14. Paragraph 14 of subdivision c of section 26-511 of the adminis-
trative code of the city of New York, as added by chapter 82 of the laws
of 2003, is amended to read as follows:

S. 5856                            27                            A. 8518

  (14) provides that where the amount of rent charged to and paid by the
tenant is less than the legal regulated rent for  the  housing  accommo-
dation,  the  amount of rent for such housing accommodation which may be
charged upon renewal or upon vacancy thereof may, at the option  of  the
owner,  be  based upon such previously established legal regulated rent,
as adjusted by the most recent applicable guidelines increases  and  any
other  increases  authorized  by law. Where, subsequent to vacancy, such
legal regulated rent, as adjusted by the most recent  applicable  guide-
lines  increases  and any other increases authorized by law is two thou-
sand dollars or more per month OR, FOR ANY HOUSING  ACCOMMODATION  WHICH
IS  OR  BECOMES VACANT ON OR AFTER THE EFFECTIVE DATE OF THE RENT ACT OF
2011, IS TWO THOUSAND FIVE HUNDRED DOLLARS OR MORE PER MONTH, such hous-
ing accommodation shall be excluded from  the  provisions  of  this  law
pursuant to section 26-504.2 of this chapter.
  S  15.  Subparagraph  (e)  of  paragraph 1 of subdivision g of section
26-405 of the administrative code of the city of New York, as amended by
chapter 253 of the laws of 1993, is amended to read as follows:
  (e) The landlord and tenant  by  mutual  voluntary  written  agreement
agree  to  a  substantial  increase  or  decrease in dwelling space or a
change in the services, furniture, furnishings or equipment provided  in
the  housing accommodations. An adjustment under this subparagraph shall
be equal to one-fortieth, IN THE CASE OF A BUILDING WITH THIRTY-FIVE  OR
FEWER HOUSING ACCOMMODATIONS, OR ONE-SIXTIETH, IN THE CASE OF A BUILDING
WITH  MORE THAN THIRTY-FIVE HOUSING ACCOMMODATIONS WHERE SUCH ADJUSTMENT
TAKES EFFECT ON OR AFTER SEPTEMBER TWENTY-FOURTH, TWO  THOUSAND  ELEVEN,
of  the  total cost incurred by the landlord in providing such modifica-
tion or increase in dwelling space, services, furniture, furnishings  or
equipment,  including  the  cost  of installation, but excluding finance
charges, provided further [than] THAT an owner who is entitled to a rent
increase pursuant to this  subparagraph  shall  not  be  entitled  to  a
further  rent increase based upon the installation of similar equipment,
or new furniture or furnishings within  the  useful  life  of  such  new
equipment, or new furniture or furnishings. The owner shall give written
notice  to  the city rent agency of any such adjustment pursuant to this
subparagraph[.]; or
  S 16.  Paragraph 13 of subdivision c of section 26-511 of the adminis-
trative code of the city of New York, as added by  chapter  253  of  the
laws of 1993, is amended to read as follows:
  (13) provides that an owner is entitled to a rent increase where there
has  been a substantial modification or increase of dwelling space or an
increase in the services, or installation of new equipment  or  improve-
ments or new furniture or furnishings provided in or to a tenant's hous-
ing  accommodation,  on  written tenant consent to the rent increase. In
the case of a vacant housing accommodation, tenant consent shall not  be
required.  The  permanent  increase  in the legal regulated rent for the
affected housing accommodation shall be one-fortieth, IN THE CASE  OF  A
BUILDING WITH THIRTY-FIVE OR FEWER HOUSING ACCOMMODATIONS, OR ONE-SIXTI-
ETH, IN THE CASE OF A BUILDING WITH MORE THAN THIRTY-FIVE HOUSING ACCOM-
MODATIONS WHERE SUCH PERMANENT INCREASE TAKES EFFECT ON OR AFTER SEPTEM-
BER  TWENTY-FOURTH,  TWO  THOUSAND ELEVEN, of the total cost incurred by
the landlord in providing such  modification  or  increase  in  dwelling
space, services, furniture, furnishings or equipment, including the cost
of installation, but excluding finance charges. Provided further that an
owner  who  is  entitled  to  a rent increase pursuant to this paragraph
shall not be entitled to a further rent increase based upon the  instal-

S. 5856                            28                            A. 8518

lation  of similar equipment, or new furniture or furnishings within the
useful life of such new equipment, or new furniture or furnishings.
  S 17. Intentionally omitted.
  S  18. Paragraph 1 of subdivision d of section 6 of section 4 of chap-
ter  576  of  the  laws  of  1974,  constituting  the  emergency  tenant
protection  act of nineteen seventy-four, as added by chapter 253 of the
laws of 1993, is amended to read as follows:
  (1) there has been a substantial modification or increase of  dwelling
space  or  an increase in the services, or installation of new equipment
or improvements or new furniture or furnishings, provided  in  or  to  a
tenant's  housing  accommodation,  on written tenant consent to the rent
increase. In the case of a vacant housing accommodation, tenant  consent
shall  not  be required.   The permanent increase in the legal regulated
rent for the affected housing accommodation shall  be  one-fortieth,  IN
THE CASE OF A BUILDING WITH THIRTY-FIVE OR FEWER HOUSING ACCOMMODATIONS,
OR  ONE-SIXTIETH,  IN  THE CASE OF A BUILDING WITH MORE THAN THIRTY-FIVE
HOUSING ACCOMMODATIONS WHERE SUCH PERMANENT INCREASE TAKES EFFECT ON  OR
AFTER  SEPTEMBER  TWENTY-FOURTH,  TWO THOUSAND ELEVEN, of the total cost
incurred by the landlord in providing such modification or  increase  in
dwelling space, services, furniture, furnishings or equipment, including
the  cost  of  installation,  but  excluding  finance  charges. Provided
further [than] THAT an owner who is entitled to a rent increase pursuant
to this paragraph shall not be entitled to a further rent increase based
upon  the  installation  of  similar  equipment,  or  new  furniture  or
furnishings  within the useful life of such new equipment, or new furni-
ture or furnishings.
  S 19. Intentionally omitted.
  S 20. Intentionally omitted.
  S 21. Intentionally omitted.
  S 22. Intentionally omitted.
  S 23. Intentionally omitted.
  S 24. Intentionally omitted.
  S 25. The second undesignated paragraph of paragraph (a)  of  subdivi-
sion 4 of section 4 of chapter 274 of the laws of 1946, constituting the
emergency housing rent control law, as amended by chapter 21 of the laws
of  1962,  clause  5  as  amended by chapter 253 of the laws of 1993, is
amended to read as follows:
  No application for adjustment of maximum rent based upon a sales price
valuation shall be filed by the landlord under this  subparagraph  prior
to  six months from the date of such sale of the property.  In addition,
no adjustment ordered by the commission  based  upon  such  sales  price
valuation  shall  be  effective  prior to one year from the date of such
sale.  Where, however, the assessed valuation of the land  exceeds  four
times  the  assessed  valuation of the buildings thereon, the commission
may determine a valuation of the property equal to five times the equal-
ized assessed valuation of the  buildings,  for  the  purposes  of  this
subparagraph.    The  commission may make a determination that the valu-
ation of the  property  is  an  amount  different  from  such  equalized
assessed  valuation  where  there  is  a request for a reduction in such
assessed  valuation  currently  pending;  or  where  there  has  been  a
reduction  in  the  assessed  valuation  for the year next preceding the
effective date of the current assessed valuation in effect at  the  time
of the filing of the application.  Net annual return shall be the amount
by which the earned income exceeds the operating expenses of the proper-
ty,  excluding  mortgage interest and amortization, and excluding allow-
ances for obsolescence and reserves,  but  including  an  allowance  for

S. 5856                            29                            A. 8518

depreciation  of  two per centum of the value of the buildings exclusive
of the land, or the amount shown for depreciation of  the  buildings  in
the  latest  required  federal  income  tax  return, whichever is lower;
provided,  however, that (1) no allowance for depreciation of the build-
ings shall be included where the buildings have been  fully  depreciated
for federal income tax purposes or on the books of the owner; or (2) the
landlord  who  owns  no more than four rental units within the state has
not been fully compensated by increases in rental income  sufficient  to
offset  unavoidable increases in property taxes, fuel, utilities, insur-
ance and repairs and maintenance, excluding mortgage interest and  amor-
tization,  and  excluding  allowances for depreciation, obsolescence and
reserves, which have occurred since the  federal  date  determining  the
maximum rent or the date the property was acquired by the present owner,
whichever  is  later;  or (3)   the landlord operates a hotel or rooming
house or owns a cooperative apartment and has not been fully compensated
by increases in rental income from the controlled housing accommodations
sufficient to offset unavoidable increases in property taxes  and  other
costs  as  are  allocable  to  such  controlled  housing accommodations,
including costs of operation of such hotel or rooming house, but exclud-
ing mortgage interest and amortization,  and  excluding  allowances  for
depreciation,  obsolescence  and reserves, which have occurred since the
federal date determining the maximum  rent  or  the  date  the  landlord
commenced the operation of the property, whichever is later; or (4)  the
landlord and tenant voluntarily enter into a valid written lease in good
faith  with  respect  to any housing accommodation, which lease provides
for an increase in the maximum rent not in excess of fifteen per  centum
and  for a term of not less than two years, except that where such lease
provides for an increase in excess of fifteen per centum,  the  increase
shall  be  automatically reduced to fifteen per centum; or (5) the land-
lord and tenant  by  mutual  voluntary  written  agreement  agree  to  a
substantial  increase  or  decrease in dwelling space or a change in the
services, furniture, furnishings or equipment provided  in  the  housing
accommodations;  provided  that  an  owner  shall  be entitled to a rent
increase where there has been a substantial modification or increase  of
dwelling  space  or  an increase in the services, or installation of new
equipment or improvements or new furniture or furnishings provided in or
to a tenant's housing accommodation. The permanent increase in the maxi-
mum rent for the affected housing accommodation shall  be  one-fortieth,
IN  THE  CASE  OF  A BUILDING WITH THIRTY-FIVE OR FEWER HOUSING ACCOMMO-
DATIONS, OR ONE-SIXTIETH, IN THE CASE OF A BUILDING WITH MORE THAN THIR-
TY-FIVE HOUSING  ACCOMMODATIONS  WHERE  SUCH  PERMANENT  INCREASE  TAKES
EFFECT  ON OR AFTER SEPTEMBER TWENTY-FOURTH, TWO THOUSAND ELEVEN, of the
total cost incurred by the landlord in providing  such  modification  or
increase  in  dwelling space, services, furniture, furnishings or equip-
ment, including the cost of installation, but excluding finance  charges
provided further that an owner who is entitled to a rent increase pursu-
ant  to  this  clause  shall  not be entitled to a further rent increase
based upon the installation of similar equipment, or  new  furniture  or
furnishings  within the useful life of such new equipment, or new furni-
ture or furnishings. The owner shall give written notice to the  commis-
sion  of  any such adjustment pursuant to this clause; or (6)  there has
been, since March first, nineteen hundred  fifty,  an  increase  in  the
rental  value of the housing accommodations as a result of a substantial
rehabilitation of the building or housing  accommodation  therein  which
materially adds to the value of the property or appreciably prolongs its
life,  excluding  ordinary repairs, maintenance and replacements; or (7)

S. 5856                            30                            A. 8518

there has been since March first, nineteen hundred fifty, a major  capi-
tal  improvement required for the operation, preservation or maintenance
of the structure; or (8) there has  been  since  March  first,  nineteen
hundred  fifty, in structures containing more than four housing accommo-
dations, other improvements made with the express consent of the tenants
in occupancy of at least seventy-five per  centum of the housing  accom-
modations, provided, however, that no adjustment granted hereunder shall
exceed  fifteen  per  centum  unless the tenants have agreed to a higher
percentage of increase, as herein provided; or  (9)    there  has  been,
since  March first, nineteen hundred fifty, a subletting without written
consent from the landlord or an increase in the number  of  adult  occu-
pants who are not members of the immediate family of the tenant, and the
landlord  has not been compensated therefor by adjustment of the maximum
rent by lease or order of the commission or pursuant to the federal act;
or (10)  the presence of unique  or  peculiar  circumstances  materially
affecting  the  maximum  rent  has  resulted  in a maximum rent which is
substantially lower than the rents generally prevailing in the same area
for substantially similar housing accommodations.
  S 26. Intentionally omitted.
  S 27. Intentionally omitted.
  S 28. Intentionally omitted.
  S 29. Paragraph 12 of subdivision a of section 5 of section 4 of chap-
ter  576  of  the  laws  of  1974,  constituting  the  emergency  tenant
protection  act  of  nineteen seventy-four, as amended by chapter 116 of
the laws of 1997, is amended to read as follows:
  (12) upon issuance of an order by the division, housing accommodations
which are: (1) occupied by persons who have a total  annual  income  [in
excess of one hundred seventy-five thousand dollars per annum in each of
the two preceding calendar years, as defined in and subject to the limi-
tations  and process set forth in section five-a of this act] AS DEFINED
IN AND SUBJECT TO THE LIMITATIONS  AND  PROCESS  SET  FORTH  IN  SECTION
FIVE-A  OF  THIS  ACT IN EXCESS OF THE DEREGULATION INCOME THRESHOLD, AS
DEFINED IN SECTION FIVE-A OF THIS ACT, IN  EACH  OF  THE  TWO  PRECEDING
CALENDAR  YEARS;  and  (2)  have a legal regulated rent [of two thousand
dollars or more per month] THAT EQUALS OR EXCEEDS THE DEREGULATION  RENT
THRESHOLD,  AS DEFINED IN SECTION FIVE-A OF THIS ACT.  Provided however,
that this exclusion shall not  apply  to  housing  accommodations  which
became  or  become  subject  to  this act (a) by virtue of receiving tax
benefits pursuant to section four hundred twenty-one-a or  four  hundred
eighty-nine  of  the real property tax law, except as otherwise provided
in subparagraph (i) of paragraph (f) of subdivision two of section  four
hundred  twenty-one-a  of the real property tax law, or (b) by virtue of
article seven-C of the multiple dwelling law.
  S 30. Section 5-a of section 4 of chapter 576 of  the  laws  of  1974,
constituting  the  emergency  tenant protection act of nineteen seventy-
four, as added by chapter 253 of the laws of 1993, subdivision  (b)  and
paragraphs  1 and 2 of subdivision (c) as amended and subdivision (e) as
added by chapter 116 of the laws of 1997, is amended to read as follows:
  S 5-a. High income rent [decontrol] DEREGULATION.  (a) 1. For purposes
of this section, annual income shall mean  the  federal  adjusted  gross
income as reported on the New York state income tax return. Total annual
income  means  the  sum of the annual incomes of all persons whose names
are recited as the tenant or co-tenant on a lease who occupy the housing
accommodation and all other persons that  occupy  the  housing  accommo-
dation  as  their  primary  residence  on  other than a temporary basis,
excluding bona fide employees of  such  occupants  residing  therein  in

S. 5856                            31                            A. 8518

connection  with  such  employment and excluding bona fide subtenants in
occupancy pursuant to the provisions of section two hundred twenty-six-b
of the real property law.  In the case where a housing accommodation  is
sublet,  the  annual  income  of  the tenant or co-tenant recited on the
lease who will reoccupy the housing accommodation upon the expiration of
the sublease shall be considered.
  2. DEREGULATION INCOME THRESHOLD MEANS TOTAL ANNUAL  INCOME  EQUAL  TO
ONE  HUNDRED  SEVENTY-FIVE THOUSAND DOLLARS IN EACH OF THE TWO PRECEDING
CALENDAR YEARS FOR PROCEEDINGS COMMENCED BEFORE JULY FIRST, TWO THOUSAND
ELEVEN.  FOR PROCEEDINGS COMMENCED ON OR AFTER JULY FIRST, TWO  THOUSAND
ELEVEN,  THE DEREGULATION INCOME THRESHOLD MEANS THE TOTAL ANNUAL INCOME
EQUAL TO TWO HUNDRED THOUSAND DOLLARS  IN  EACH  OF  THE  TWO  PRECEDING
CALENDAR YEARS.
  3.   DEREGULATION  RENT  THRESHOLD  MEANS  TWO  THOUSAND  DOLLARS  FOR
PROCEEDINGS COMMENCED BEFORE JULY  FIRST,  TWO  THOUSAND  ELEVEN.    FOR
PROCEEDINGS  COMMENCED  ON OR AFTER JULY FIRST, TWO THOUSAND ELEVEN, THE
DEREGULATION RENT THRESHOLD MEANS TWO THOUSAND FIVE HUNDRED DOLLARS.
  (b) On or before the first day of May in each calendar year, the owner
of each housing accommodation for which the legal regulated MONTHLY rent
[is two thousand dollars or more per month] EQUALS OR EXCEEDS THE DEREG-
ULATION RENT THRESHOLD may provide the tenant or tenants residing there-
in with an income certification form prepared by the division of housing
and community renewal on which such tenant or tenants shall identify all
persons referred to in subdivision (a) of this section and shall certify
whether the total annual income is in excess of  [one  hundred  seventy-
five  thousand  dollars in each of the two preceding calendar years] THE
DEREGULATION INCOME THRESHOLD IN EACH  OF  THE  TWO  PRECEDING  CALENDAR
YEARS.  Such income certification form shall state that the income level
certified to by the tenant may be subject to verification by the depart-
ment  of  taxation  and finance pursuant to section one hundred seventy-
one-b of the tax law, and shall not require disclosure of  any  informa-
tion  other than whether the aforementioned threshold has been exceeded.
Such income certification  form  shall  clearly  state  that:  (i)  only
tenants  residing  in housing accommodations which had a legal regulated
MONTHLY rent [of two thousand dollars or more per month] THAT EQUALS  OR
EXCEEDS  THE  DEREGULATION  RENT  THRESHOLD are required to complete the
certification form; (ii) that tenants have protections available to them
which are designed to prevent harassment; (iii)  that  tenants  are  not
required  to  provide any information regarding their income except that
which is requested on the form and may contain  such  other  information
the  division  deems appropriate. The tenant or tenants shall return the
completed certification to the owner within thirty  days  after  service
upon the tenant or tenants. In the event that the total annual income as
certified  is in excess of [one hundred seventy-five thousand dollars in
each such year] THE DEREGULATION INCOME THRESHOLD IN  EACH  OF  THE  TWO
PRECEDING  CALENDAR YEARS, the owner may file the certification with the
state division of housing and community renewal on or before June  thir-
tieth  of  such  year. Upon filing such certification with the division,
the division shall, within thirty days after the filing, issue an  order
providing  that  such  housing accommodation shall not be subject to the
provisions of this act upon the expiration of the existing lease. A copy
of such order shall be mailed by  regular  and  certified  mail,  return
receipt  requested, to the tenant or tenants and a copy thereof shall be
mailed to the owner.
  (c) 1. In the event that the tenant or tenants either fail  to  return
the  completed certification to the owner on or before the date required

S. 5856                            32                            A. 8518

by subdivision (b) of this section or the  owner  disputes  the  certif-
ication  returned  by the tenant or tenants, the owner may, on or before
June thirtieth of such year, petition the state division of housing  and
community  renewal  to  verify, pursuant to section one hundred seventy-
one-b of the tax law, whether  the  total  annual  income  exceeds  [one
hundred  seventy-five  thousand  dollars  in  each  of the two preceding
calendar years] THE DEREGULATION INCOME THRESHOLD IN  EACH  OF  THE  TWO
PRECEDING  CALENDAR YEARS.   Within twenty days after the filing of such
request with the division, the  division  shall  notify  the  tenant  or
tenants  that such tenant or tenants named on the lease must provide the
division with such information as the division  and  the  department  of
taxation  and  finance  shall require to verify whether the total annual
income exceeds [one hundred seventy-five thousand dollars in  each  such
year]  THE  DEREGULATION  INCOME  THRESHOLD IN EACH OF THE TWO PRECEDING
CALENDAR YEARS.  The division's notification shall require the tenant or
tenants to provide the information to the division within sixty days  of
service  upon such tenant or tenants and shall include a warning in bold
faced type that failure to respond will result in an order being  issued
by  the division providing that such housing accommodations shall not be
subject to the provisions of this act.
  2. If the department of taxation and finance determines that the total
annual income is in excess of [one hundred seventy-five thousand dollars
in each of the two preceding calendar  years]  THE  DEREGULATION  INCOME
THRESHOLD  IN  EACH  OF  THE  TWO PRECEDING CALENDAR YEARS, the division
shall, on or before November fifteenth of such year,  notify  the  owner
and  tenants of the results of such verification. Both the owner and the
tenants shall have thirty days within which to comment on such verifica-
tion results.   Within forty-five  days  after  the  expiration  of  the
comment  period,  the  division shall, where appropriate, issue an order
providing that such housing accommodation shall not be  subject  to  the
provisions  of this act upon expiration of the existing lease. A copy of
such order shall be mailed by regular and certified mail, return receipt
requested, to the tenant or tenants and a copy thereof shall be sent  to
the owner.
  3.  In the event the tenant or tenants fail to provide the information
required pursuant to paragraph one of  this  subdivision,  the  division
shall  issue, on or before December first of such year, an order provid-
ing that  such  housing  accommodation  shall  not  be  subject  to  the
provisions  of this act upon the expiration [or] OF the current lease. A
copy of such order shall be mailed by regular and certified mail, return
receipt requested, to the tenant or tenants and a copy thereof shall  be
sent to the owner.
  4.  The  provisions  of the state freedom of information act shall not
apply to any income information obtained by  the  division  pursuant  to
this section.
  (d) This section shall apply only to paragraph twelve of subdivision a
of section five of this act.
  (e) Upon receipt of such order of [decontrol] DEREGULATION pursuant to
this  section, an owner shall offer the housing accommodation subject to
such order to the tenant at a rent not in excess  of  the  market  rent,
which  for  the  purposes  of this section means a rent obtainable in an
arm's length transaction. Such rental offer shall be made by  the  owner
in  writing to the tenant by certified and regular mail and shall inform
the tenant that such offer must be accepted in writing within  ten  days
of  receipt.   The tenant shall respond within ten days after receipt of
such offer. If the tenant declines the offer or fails to respond  within

S. 5856                            33                            A. 8518

such  period,  the  owner  may  commence an action or proceeding for the
eviction of such tenant.
  S  31.  Paragraph  (m) of subdivision 2 of section 2 of chapter 274 of
the laws of 1946, constituting the emergency housing rent  control  law,
as  amended  by  chapter  116 of the laws of 1997, is amended to read as
follows:
  (m) upon the issuance of an order of [decontrol] DEREGULATION  by  the
division,  housing accommodations which: (1) are occupied by persons who
have a total annual income, AS DEFINED IN AND SUBJECT TO THE LIMITATIONS
AND PROCESS SET FORTH IN SECTION TWO-A OF THIS LAW, in  excess  of  [one
hundred  seventy-five  thousand  dollars  in  each  of the two preceding
calendar years, as defined in and subject to the limitations and process
set forth in section two-a of this law] THE DEREGULATION INCOME  THRESH-
OLD AS DEFINED IN SECTION TWO-A OF THIS LAW IN EACH OF THE TWO PRECEDING
CALENDAR  YEARS; and (2) have a maximum rent [of two thousand dollars or
more per month] THAT EQUALS OR EXCEEDS THE DEREGULATION  RENT  THRESHOLD
AS DEFINED IN SECTION TWO-A OF THIS LAW.
  S 32. Section 2-a of chapter 274 of the laws of 1946, constituting the
emergency  housing rent control law, as added by chapter 253 of the laws
of 1993, subdivision (b) and paragraphs 1 and 2 of  subdivision  (c)  as
amended and subdivision (e) as added by chapter 116 of the laws of 1997,
is amended to read as follows:
  S 2-a.  (a)  1. For purposes of this section, annual income shall mean
the federal adjusted gross income as reported  on  the  New  York  state
income  tax  return.  Total  annual  income  means the sum of the annual
incomes of all persons who occupy the  housing  accommodation  as  their
primary  residence  on other than a temporary basis, excluding bona fide
employees of such occupants residing therein  in  connection  with  such
employment  and  excluding bona fide subtenants in occupancy pursuant to
the provisions of section two hundred twenty-six-b of the real  property
law.  In  the  case  where a housing accommodation is sublet, the annual
income of the sublessor shall be considered.
  2. DEREGULATION INCOME THRESHOLD MEANS TOTAL ANNUAL  INCOME  EQUAL  TO
ONE  HUNDRED  SEVENTY-FIVE THOUSAND DOLLARS IN EACH OF THE TWO PRECEDING
CALENDAR YEARS FOR PROCEEDINGS COMMENCED BEFORE JULY FIRST, TWO THOUSAND
ELEVEN.  FOR PROCEEDINGS COMMENCED ON OR AFTER JULY FIRST, TWO  THOUSAND
ELEVEN,  THE DEREGULATION INCOME THRESHOLD MEANS THE TOTAL ANNUAL INCOME
EQUAL TO TWO HUNDRED THOUSAND DOLLARS  IN  EACH  OF  THE  TWO  PRECEDING
CALENDAR YEARS.
  3.   DEREGULATION  RENT  THRESHOLD  MEANS  TWO  THOUSAND  DOLLARS  FOR
PROCEEDINGS COMMENCED PRIOR TO JULY FIRST, TWO  THOUSAND  ELEVEN.    FOR
PROCEEDINGS  COMMENCED  ON OR AFTER JULY FIRST, TWO THOUSAND ELEVEN, THE
DEREGULATION RENT THRESHOLD MEANS TWO THOUSAND FIVE HUNDRED DOLLARS.
  (b) On or before the first day of May in each calendar year, the owner
of each housing accommodation for which the maximum MONTHLY rent [is two
thousand dollars or more per month] EQUALS OR EXCEEDS  THE  DEREGULATION
RENT  THRESHOLD  may provide the tenant or tenants residing therein with
an income certification form prepared by the  division  of  housing  and
community  renewal  on  which  such tenant or tenants shall identify all
persons referred to in subdivision (a) of this section and shall certify
whether the total annual income is in excess of  [one  hundred  seventy-
five  thousand  dollars in each of the two preceding calendar years] THE
DEREGULATION INCOME THRESHOLD IN EACH  OF  THE  TWO  PRECEDING  CALENDAR
YEARS.  Such income certification form shall state that the income level
certified to by the tenant may be subject to verification by the depart-
ment of taxation and finance pursuant to section  one  hundred  seventy-

S. 5856                            34                            A. 8518

one-b  of  the  tax  law  and shall not require disclosure of any income
information other than whether the  aforementioned  threshold  has  been
exceeded.  Such  income certification form shall clearly state that: (i)
only  tenants  residing  in  housing  accommodations which had a maximum
MONTHLY rent EQUAL TO OR IN EXCESS of [two thousand dollars or more  per
month]  THE  DEREGULATION  RENT  THRESHOLD  are required to complete the
certification form; (ii) that tenants have protections available to them
which are designed to prevent harassment; (iii)  that  tenants  are  not
required  to  provide any information regarding their income except that
which is requested on the form and may contain  such  other  information
the  division  deems appropriate. The tenant or tenants shall return the
completed certification to the owner within thirty  days  after  service
upon the tenant or tenants. In the event that the total annual income as
certified  is in excess of [one hundred seventy-five thousand dollars in
each such year] THE DEREGULATION INCOME THRESHOLD IN  EACH  OF  THE  TWO
PRECEDING  CALENDAR YEARS, the owner may file the certification with the
state division of housing and community renewal on or before June  thir-
tieth  of  such  year. Upon filing such certification with the division,
the division shall, within thirty days after the filing, issue an  order
of  [decontrol]  DEREGULATION providing that such housing accommodations
shall not be subject to the provisions of this law as of the  first  day
of  June  in the year next succeeding the filing of the certification by
the owner. A copy of such order shall be mailed by regular and certified
mail, return receipt requested, to the tenant  or  tenants  and  a  copy
thereof shall be mailed to the owner.
  (c)  1.  In the event that the tenant or tenants either fail to return
the completed certification to the owner on or before the date  required
by  subdivision  (b)  of  this section or the owner disputes the certif-
ication returned by the tenant or tenants, the owner may, on  or  before
June  thirtieth of such year, petition the state division of housing and
community renewal to verify, pursuant to section  one  hundred  seventy-
one-b  of  the  tax  law,  whether  the total annual income exceeds [one
hundred seventy-five thousand dollars  in  each  of  the  two  preceding
calendar  years]  THE  DEREGULATION  INCOME THRESHOLD IN EACH OF THE TWO
PRECEDING CALENDAR YEARS.  Within twenty days after the filing  of  such
request  with  the  division,  the  division  shall notify the tenant or
tenants that such tenant or tenants must provide the division with  such
information  as  the division and the department of taxation and finance
shall require to verify whether the total  annual  income  exceeds  [one
hundred  seventy-five  thousand  dollars  in each such year] THE DEREGU-
LATION INCOME THRESHOLD IN EACH OF THE  TWO  PRECEDING  CALENDAR  YEARS.
The  division's  notification  shall  require  the  tenant or tenants to
provide the information to the division within  sixty  days  of  service
upon  such  tenant  or tenants and shall include a warning in bold faced
type that failure to respond will result  in  an  order  of  [decontrol]
DEREGULATION  being  issued  by  the  division for such housing accommo-
dation.
  2. If the department of taxation and finance determines that the total
annual income is in excess of [one hundred seventy-five thousand dollars
in each of the two preceding calendar  years]  THE  DEREGULATION  INCOME
THRESHOLD  IN  EACH  OF  THE  TWO PRECEDING CALENDAR YEARS, the division
shall, on or before November fifteenth of such year,  notify  the  owner
and  tenants of the results of such verification. Both the owner and the
tenants shall have thirty days within which to comment on such verifica-
tion results.   Within forty-five  days  after  the  expiration  of  the
comment period, the division shall, where appropriate, issue an order of

S. 5856                            35                            A. 8518

[decontrol] DEREGULATION providing that such housing accommodation shall
not  be  subject  to  the  provisions of this law as of the first day of
March in the year next succeeding the filing  of  the  owner's  petition
with  the  division. A copy of such order shall be mailed by regular and
certified mail, return receipt requested, to the tenant or tenants and a
copy thereof shall be sent to the owner.
  3. In the event the tenant or tenants fail to provide the  information
required  pursuant  to  paragraph  one of this subdivision, the division
shall issue, on or before December first  of  such  year,  an  order  of
[decontrol] DEREGULATION providing that such housing accommodation shall
not  be  subject  to  the  provisions of this law as of the first day of
March in the year next succeeding the last day on which  the  tenant  or
tenants  were required to provide the information required by such para-
graph. A copy of such order shall be mailed  by  regular  and  certified
mail,  return  receipt  requested,  to  the tenant or tenants and a copy
thereof shall be sent to the owner.
  4. The provisions of the state freedom of information  act  shall  not
apply  to  any  income  information obtained by the division pursuant to
this section.
  (d) This section shall apply only to paragraph (m) of subdivision  two
of section two of this law.
  (e) Upon receipt of such order of [decontrol] DEREGULATION pursuant to
this  section, an owner shall offer the housing accommodation subject to
such order to the tenant at a rent not in excess  of  the  market  rent,
which  for  the  purposes  of this section means a rent obtainable in an
arm's length transaction. Such rental offer shall be made by  the  owner
in  writing to the tenant by certified and regular mail and shall inform
the tenant that such offer must be accepted in writing within  ten  days
of  receipt.   The tenant shall respond within ten days after receipt of
such offer. If the tenant declines the offer or fails to respond  within
such  period,  the  owner  may  commence an action or proceeding for the
eviction of such tenant.
  S 33. Subparagraph (j) of paragraph 2  of  subdivision  e  of  section
26-403 of the administrative code of the city of New York, as amended by
chapter 116 of the laws of 1997, is amended to read as follows:
  (j)  Upon  the issuance of an order of [decontrol] DEREGULATION by the
division, housing accommodations which: (1) are occupied by persons  who
have a total annual income, AS DEFINED IN AND SUBJECT TO THE LIMITATIONS
AND  PROCESS SET FORTH IN SECTION 26-403.1 OF THIS CHAPTER, in excess of
[one hundred seventy-five thousand dollars per annum]  THE  DEREGULATION
INCOME  THRESHOLD,  AS  DEFINED  IN SECTION 26-403.1 OF THIS CHAPTER, in
each of the two preceding calendar years[, as defined in and subject  to
the  limitations and process set forth in section 26-403.1 of this chap-
ter]; and (2) have a maximum rent [of two thousand dollars or  more  per
month]  THAT  EQUALS  OR  EXCEEDS  THE  DEREGULATION  RENT THRESHOLD, AS
DEFINED IN SECTION 26-403.1 OF THIS CHAPTER.    Provided  however,  that
this exclusion shall not apply to housing accommodations which became or
become  subject to this law by virtue of receiving tax benefits pursuant
to section four hundred eighty-nine of the real property tax law.
  S 34. Section 26-403.1 of the administrative code of the city  of  New
York,  as  added by chapter 253 of the laws of 1993, subdivision (b) and
paragraphs 1 and 2 of subdivision (c) as amended and subdivision (e)  as
added by chapter 116 of the laws of 1997, is amended to read as follows:
  S  26-403.1  High  income  rent [decontrol] DEREGULATION.   (a) 1. For
purposes of this section, annual income shall mean the federal  adjusted
gross  income as reported on the New York state income tax return. Total

S. 5856                            36                            A. 8518

annual income means the sum of the annual incomes  of  all  persons  who
occupy  the  housing accommodation as their primary residence other than
on a temporary basis, excluding bona fide employees  of  such  occupants
residing  therein  in connection with such employment and excluding bona
fide subtenants in occupancy pursuant to the provisions of  section  two
hundred twenty-six-b of the real property law. In the case where a hous-
ing accommodation is sublet, the annual income of the sublessor shall be
considered.
  2.  DEREGULATION  INCOME  THRESHOLD MEANS TOTAL ANNUAL INCOME EQUAL TO
ONE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS IN EACH OF THE  TWO  PRECEDING
CALENDAR  YEARS FOR PROCEEDINGS COMMENCED PRIOR TO JULY FIRST, TWO THOU-
SAND ELEVEN.   FOR PROCEEDINGS COMMENCED ON OR  AFTER  JULY  FIRST,  TWO
THOUSAND ELEVEN, THE DEREGULATION INCOME THRESHOLD MEANS THE TOTAL ANNU-
AL  INCOME  EQUAL  TO  TWO  HUNDRED  THOUSAND DOLLARS IN EACH OF THE TWO
PRECEDING CALENDAR YEARS.
  3.  DEREGULATION  RENT  THRESHOLD  MEANS  TWO  THOUSAND  DOLLARS   FOR
PROCEEDINGS  COMMENCED  BEFORE  JULY  FIRST,  TWO THOUSAND ELEVEN.   FOR
PROCEEDINGS COMMENCED ON OR AFTER JULY FIRST, TWO THOUSAND  ELEVEN,  THE
DEREGULATION RENT THRESHOLD MEANS TWO THOUSAND FIVE HUNDRED DOLLARS.
  (b) On or before the first day of May in each calendar year, the owner
of  each  housing accommodation for which the maximum rent [is two thou-
sand dollars or more per month] EQUALS OR EXCEEDS THE DEREGULATION  RENT
THRESHOLD  may  provide  the  tenant or tenants residing therein with an
income certification form prepared by the division of housing and commu-
nity renewal on which such tenant or tenants shall identify all  persons
referred to in subdivision (a) of this section and shall certify whether
the  total annual income is in excess of [one hundred seventy-five thou-
sand dollars in each of the two preceding calendar  years]  THE  DEREGU-
LATION  INCOME  THRESHOLD  IN  EACH OF THE TWO PRECEDING CALENDAR YEARS.
Such income certification form shall state that the income level  certi-
fied  to  by the tenant may be subject to verification by the department
of taxation and finance pursuant to section one hundred seventy-one-b of
the tax law and shall not require disclosure of any  income  information
other  than whether the aforementioned threshold has been exceeded. Such
income certification form shall clearly state  that:  (i)  only  tenants
residing in housing accommodations which have a maximum MONTHLY rent [of
two  thousand  dollars  or  more  per  month] THAT EQUALS OR EXCEEDS THE
DEREGULATION RENT THRESHOLD are required to complete  the  certification
form;  (ii)  that  tenants  have protections available to them which are
designed to prevent harassment; (iii) that tenants are not  required  to
provide  any  information  regarding  their  income except that which is
requested on the form and may contain such other information  the  divi-
sion deems appropriate. The tenant or tenants shall return the completed
certification  to  the  owner  within thirty days after service upon the
tenant or tenants. In the event that the total annual income  as  certi-
fied  is in excess of [one hundred seventy-five thousand dollars in each
such year] THE DEREGULATION INCOME THRESHOLD IN EACH OF THE TWO  PRECED-
ING  CALENDAR YEARS, the owner may file the certification with the state
division of housing and community renewal on or before June thirtieth of
such year. Upon filing such certification with the division,  the  divi-
sion  shall,  within  thirty  days  after  the filing, issue an order of
[decontrol] DEREGULATION  providing  that  such  housing  accommodations
shall  not  be subject to the provisions of this law as of the first day
of June in the year next succeeding the filing of the  certification  by
the owner. A copy of such order shall be mailed by regular and certified

S. 5856                            37                            A. 8518

mail,  return  receipt  requested,  to  the tenant or tenants and a copy
thereof shall be mailed to the owner.
  (c)  1.  In the event that the tenant or tenants either fail to return
the completed certification to the owner on or before the date  required
by  subdivision  (b)  of  this section or the owner disputes the certif-
ication returned by the tenant or tenants, the owner may, on  or  before
June  thirtieth of such year, petition the state division of housing and
community renewal to verify, pursuant to section  one  hundred  seventy-
one-b  of  the  tax  law,  whether  the total annual income exceeds [one
hundred seventy-five thousand dollars  in  each  of  the  two  preceding
calendar  years]  THE  DEREGULATION  INCOME THRESHOLD IN EACH OF THE TWO
PRECEDING CALENDAR YEARS.  Within twenty days after the filing  of  such
request  with  the  division,  the  division  shall notify the tenant or
tenants that such tenant or tenants must provide the division with  such
information  as  the division and the department of taxation and finance
shall require to verify whether the total  annual  income  exceeds  [one
hundred  seventy-five  thousand  dollars  in each such year] THE DEREGU-
LATION INCOME THRESHOLD IN EACH OF THE  TWO  PRECEDING  CALENDAR  YEARS.
The  division's  notification  shall  require  the  tenant or tenants to
provide the information to the division within  sixty  days  of  service
upon  such  tenant  or tenants and shall include a warning in bold faced
type that failure to respond will result  in  an  order  of  [decontrol]
DEREGULATION  being  issued  by  the  division for such housing accommo-
dation.
  2. If the department of taxation and finance determines that the total
annual income is in excess of [one hundred seventy-five thousand dollars
in each of the two preceding calendar  years]  THE  DEREGULATION  INCOME
THRESHOLD  IN  EACH  OF  THE  TWO PRECEDING CALENDAR YEARS, the division
shall, on or before November fifteenth of such year,  notify  the  owner
and  tenants of the results of such verification. Both the owner and the
tenants shall have thirty days within which to comment on such verifica-
tion results.   Within forty-five  days  after  the  expiration  of  the
comment period, the division shall, where appropriate, issue an order of
[decontrol] DEREGULATION providing that such housing accommodation shall
not  be  subject  to  the  provisions of this law as of the first day of
March in the year next succeeding the filing  of  the  owner's  petition
with  the  division. A copy of such order shall be mailed by regular and
certified mail, return receipt requested, to the tenant or tenants and a
copy thereof shall be sent to the owner.
  3. In the event the tenant or tenants fail to provide the  information
required  pursuant  to  paragraph  one of this subdivision, the division
shall issue, on or before December first  of  such  year,  an  order  of
[decontrol] DEREGULATION providing that such housing accommodation shall
not  be  subject  to  the  provisions of this law as of the first day of
March in the year next succeeding the last day on which  the  tenant  or
tenants  were required to provide the information required by such para-
graph. A copy of such order shall be mailed  by  regular  and  certified
mail,  return  receipt  requested,  to  the tenant or tenants and a copy
thereof shall be sent to the owner.
  4. The provisions of the state freedom of information  act  shall  not
apply  to  any  income  information obtained by the division pursuant to
this section.
  (d) This section shall apply only to subparagraph (j) of paragraph two
of subdivision e of section 26-403 of this [code] CHAPTER.
  (e) Upon receipt of such order of [decontrol] DEREGULATION pursuant to
this section, an owner shall offer the housing accommodation subject  to

S. 5856                            38                            A. 8518

such  order  to  the  tenant at a rent not in excess of the market rent,
which for the purposes of this section means a  rent  obtainable  in  an
arm's  length  transaction. Such rental offer shall be made by the owner
in  writing to the tenant by certified and regular mail and shall inform
the tenant that such offer must be accepted in writing within  ten  days
of  receipt.   The tenant shall respond within ten days after receipt of
such offer. If the tenant declines the offer or fails to respond  within
such  period,  the  owner  may  commence an action or proceeding for the
eviction of such tenant.
  S 35. Section 26-504.1 of the administrative code of the city  of  New
York,  as amended by chapter 116 of the laws of 1997, is amended to read
as follows:
  S 26-504.1 Exclusion of accommodations of high  income  renters.  Upon
the issuance of an order by the division, "housing accommodations" shall
not  include  housing  accommodations which: (1) are occupied by persons
who have a total annual income, AS DEFINED IN AND SUBJECT TO THE LIMITA-
TIONS AND PROCESS SET FORTH IN SECTION  26-504.3  OF  THIS  CHAPTER,  in
excess  of  [one  hundred  seventy-five thousand dollars per annum]  THE
DEREGULATION INCOME THRESHOLD, AS DEFINED IN SECTION  26-504.3  OF  THIS
CHAPTER,  for  each  of the two preceding calendar years[, as defined in
and subject to the limitations and process set forth in section 26-504.3
of this chapter]; and (2) have a legal regulated MONTHLY  rent  [of  two
thousand  dollars  or more per month] THAT EQUALS OR EXCEEDS THE DEREGU-
LATION RENT THRESHOLD, AS DEFINED IN SECTION 26-504.3 OF  THIS  CHAPTER.
Provided, however, that this exclusion shall not apply to housing accom-
modations  which  became  or become subject to this law (a) by virtue of
receiving tax benefits pursuant to section four hundred twenty-one-a  or
four  hundred eighty-nine of the real property tax law, except as other-
wise provided in subparagraph (i) of paragraph (f) of subdivision two of
section four hundred twenty-one-a of the real property tax law,  or  (b)
by virtue of article seven-C of the multiple dwelling law.
  S  36.  Section 26-504.3 of the administrative code of the city of New
York, as added by chapter 253 of the laws of 1993, subdivision  (b)  and
paragraphs  1 and 2 of subdivision (c) as amended and subdivision (e) as
added by chapter 116 of the laws of 1997, is amended to read as follows:
  S 26-504.3 High income rent [decontrol]  DEREGULATION.    (a)  1.  For
purposes  of this section, annual income shall mean the federal adjusted
gross income as reported on the New York state income tax return.  Total
annual  income  means the sum of the annual incomes of all persons whose
names are recited as the tenant or co-tenant on a lease who  occupy  the
housing  accommodation  and  all  other  persons that occupy the housing
accommodation as their primary  residence  on  other  than  a  temporary
basis,  excluding bona fide employees of such occupants residing therein
in connection with such employment and excluding bona fide subtenants in
occupancy pursuant to the provisions of section two hundred twenty-six-b
of the real property law. In the case where a housing  accommodation  is
sublet,  the  annual  income  of  the tenant or co-tenant recited on the
lease who will reoccupy the housing accommodation upon the expiration of
the sublease shall be considered.
  2. DEREGULATION INCOME THRESHOLD MEANS TOTAL ANNUAL  INCOME  EQUAL  TO
ONE  HUNDRED  SEVENTY-FIVE THOUSAND DOLLARS IN EACH OF THE TWO PRECEDING
CALENDAR YEARS FOR PROCEEDINGS COMMENCED BEFORE JULY FIRST, TWO THOUSAND
ELEVEN.  FOR PROCEEDINGS COMMENCED ON OR AFTER JULY FIRST, TWO  THOUSAND
ELEVEN,  THE DEREGULATION INCOME THRESHOLD MEANS THE TOTAL ANNUAL INCOME
EQUAL TO TWO HUNDRED THOUSAND DOLLARS  IN  EACH  OF  THE  TWO  PRECEDING
CALENDAR YEARS.

S. 5856                            39                            A. 8518

  3.   DEREGULATION  RENT  THRESHOLD  MEANS  TWO  THOUSAND  DOLLARS  FOR
PROCEEDINGS COMMENCED BEFORE JULY  FIRST,  TWO  THOUSAND  ELEVEN.    FOR
PROCEEDINGS  COMMENCED  ON OR AFTER JULY FIRST, TWO THOUSAND ELEVEN, THE
DEREGULATION RENT THRESHOLD MEANS TWO THOUSAND FIVE HUNDRED DOLLARS.
  (b) On or before the first day of May in each calendar year, the owner
of each housing accommodation for which the legal regulated rent [is two
thousand  dollars  or more per month] EQUALS OR EXCEEDS THE DEREGULATION
RENT THRESHOLD may provide the tenant or tenants residing  therein  with
an  income  certification  form  prepared by the division of housing and
community renewal on which such tenant or  tenants  shall  identify  all
persons referred to in subdivision (a) of this section and shall certify
whether  the  total  annual income is in excess of [one hundred seventy-
five thousand dollars in each of the two preceding calendar  years]  THE
DEREGULATION  INCOME  THRESHOLD  IN  EACH  OF THE TWO PRECEDING CALENDAR
YEARS. Such income certification form shall state that the income  level
certified to by the tenant may be subject to verification by the depart-
ment  of  taxation  and finance pursuant to section one hundred seventy-
one-b of the tax law and shall not  require  disclosure  of  any  income
information  other  than  whether  the aforementioned threshold has been
exceeded. Such income certification form shall clearly state  that:  (i)
only tenants residing in housing accommodations which have a legal regu-
lated  MONTHLY  rent  [of  two thousand dollars or more per month], THAT
EQUALS OR EXCEEDS  THE  DEREGULATION  RENT  THRESHOLD  are  required  to
complete  the  certification  form;  (ii)  that tenants have protections
available to them which are designed to prevent harassment;  (iii)  that
tenants  are  not  required  to  provide any information regarding their
income except that which is requested on the form and may  contain  such
other  information the division deems appropriate. The tenant or tenants
shall return the completed certification to the owner within thirty days
after service upon the tenant or tenants. In the event  that  the  total
annual  income  as  certified  is in excess of [one hundred seventy-five
thousand dollars in each such year] THE DEREGULATION INCOME THRESHOLD IN
EACH OF THE TWO PRECEDING CALENDAR YEARS, the owner may file the certif-
ication with the state division of housing and community renewal  on  or
before  June thirtieth of such year. Upon filing such certification with
the division, the division shall, within thirty days after  the  filing,
issue  an  order  providing that such housing accommodation shall not be
subject to the provisions of this act upon the expiration of the  exist-
ing lease. A copy of such order shall be mailed by regular and certified
mail,  return  receipt  requested,  to  the tenant or tenants and a copy
thereof shall be mailed to the owner.
  (c) 1. In the event that the tenant or tenants either fail  to  return
the  completed certification to the owner on or before the date required
by subdivision (b) of this section or the  owner  disputes  the  certif-
ication  returned  by the tenant or tenants, the owner may, on or before
June thirtieth of such year, petition the state division of housing  and
community  renewal  to  verify, pursuant to section one hundred seventy-
one-b of the tax law, whether  the  total  annual  income  exceeds  [one
hundred  seventy-five  thousand  dollars  in  each  of the two preceding
calendar years] THE DEREGULATION INCOME THRESHOLD IN  EACH  OF  THE  TWO
PRECEDING  CALENDAR  YEARS.  Within twenty days after the filing of such
request with the division, the  division  shall  notify  the  tenant  or
tenants  named on the lease that such tenant or tenants must provide the
division with such information as the division  and  the  department  of
taxation  and  finance  shall require to verify whether the total annual
income exceeds [one hundred seventy-five thousand dollars in  each  such

S. 5856                            40                            A. 8518

year]  THE  DEREGULATION  INCOME  THRESHOLD IN EACH OF THE TWO PRECEDING
CALENDAR YEARS. The division's notification shall require the tenant  or
tenants  to provide the information to the division within sixty days of
service  upon such tenant or tenants and shall include a warning in bold
faced type that failure to respond will result in an order being  issued
by  the  division providing that such housing accommodation shall not be
subject to the provisions of this law.
  2. If the department of taxation and finance determines that the total
annual income is in excess of [one hundred seventy-five thousand dollars
in each of the two preceding calendar  years]  THE  DEREGULATION  INCOME
THRESHOLD  IN  EACH  OF  THE  TWO PRECEDING CALENDAR YEARS, the division
shall, on or before November fifteenth of such year,  notify  the  owner
and  tenants of the results of such verification. Both the owner and the
tenants shall have thirty days within which to comment on such verifica-
tion results.   Within forty-five  days  after  the  expiration  of  the
comment  period,  the  division shall, where appropriate, issue an order
providing that such housing accommodation shall not be  subject  to  the
provisions of this law upon the expiration of the existing lease. A copy
of  such  order  shall  be  mailed by regular and certified mail, return
receipt requested, to the tenant or tenants and a copy thereof shall  be
sent to the owner.
  3.  In the event the tenant or tenants fail to provide the information
required pursuant to paragraph one of  this  subdivision,  the  division
shall  issue, on or before December first of such year, an order provid-
ing that  such  housing  accommodation  shall  not  be  subject  to  the
provisions  of this law upon the expiration of the current lease. A copy
of such order shall be mailed by  regular  and  certified  mail,  return
receipt  requested, to the tenant or tenants and a copy thereof shall be
sent to the owner.
  4. The provisions of the state freedom of information  act  shall  not
apply  to  any  income  information obtained by the division pursuant to
this section.
  (d) This section shall apply only to section 26-504.1 of  this  [code]
CHAPTER.
  (e) Upon receipt of such order of [decontrol] DEREGULATION pursuant to
this  section, an owner shall offer the housing accommodation subject to
such order to the tenant at a rent not in excess  of  the  market  rent,
which  for  the  purposes  of this section means a rent obtainable in an
arm's length transaction. Such rental offer shall be made by  the  owner
in  writing to the tenant by certified and regular mail and shall inform
the tenant that such offer must be accepted in writing within  ten  days
of  receipt.   The tenant shall respond within ten days after receipt of
such offer. If the tenant declines the offer or fails to respond  within
such  period,  the  owner  may  commence an action or proceeding for the
eviction of such tenant.
  S 37. Paragraph (b) of subdivision 3 of section 171-b of the tax  law,
as  amended  by  chapter  116 of the laws of 1997, is amended to read as
follows:
  (b) The department, when requested by  the  division  of  housing  and
community  renewal,  shall verify the total annual income of all persons
residing in housing accommodations as their primary residence subject to
rent regulation and shall notify the commissioner  of  the  division  of
housing  and  community  renewal as may be appropriate whether the total
annual income exceeds [one hundred  seventy-five  thousand  dollars  per
annum in each of the two preceding calendar years] THE APPLICABLE DEREG-
ULATION  INCOME  THRESHOLD  IN EACH OF THE TWO PRECEDING CALENDAR YEARS.

S. 5856                            41                            A. 8518

No other information regarding the annual income of such  persons  shall
be provided.
  S  38.   Subparagraph (i) of paragraph (a) of subdivision 2 of section
421-a of the real property tax law, as amended by  chapter  288  of  the
laws of 1985, is amended to read as follows:
  (i)  Within  a  city  having  a population of one million or more, new
multiple dwellings, except hotels, shall be  exempt  from  taxation  for
local  purposes,  other than assessments for local improvements, for the
tax year or years immediately following taxable status  dates  occurring
subsequent   to   the  commencement  and  prior  to  the  completion  of
construction, but not to exceed three such tax  years,  EXCEPT  FOR  NEW
MULTIPLE  DWELLINGS  THE CONSTRUCTION OF WHICH COMMENCED BETWEEN JANUARY
FIRST, TWO THOUSAND SEVEN, AND JUNE THIRTIETH, TWO THOUSAND NINE,  SHALL
HAVE  AN ADDITIONAL THIRTY-SIX MONTHS TO COMPLETE CONSTRUCTION AND SHALL
BE ELIGIBLE FOR FULL EXEMPTION FROM TAXATION FOR THE FIRST  THREE  YEARS
OF  THE  PERIOD  OF  CONSTRUCTION;  ANY  ELIGIBLE  PROJECT THAT SEEKS TO
UTILIZE THE SIX-YEAR PERIOD OF CONSTRUCTION AUTHORIZED BY  THIS  SECTION
MUST  APPLY FOR A PRELIMINARY CERTIFICATE OF ELIGIBILITY WITHIN ONE YEAR
OF THE EFFECTIVE DATE OF THE RENT ACT OF 2011,  PROVIDED,  HOWEVER  THAT
SUCH  MULTIPLE  DWELLINGS SHALL BE ELIGIBLE FOR A MAXIMUM OF THREE YEARS
OF BENEFITS DURING THE CONSTRUCTION PERIOD, and  shall  continue  to  be
exempt from such taxation in tax years immediately following the taxable
status date first occurring after the expiration of the exemption herein
conferred  during  construction  so  long  as  used at the completion of
construction for dwelling purposes for a period not to exceed ten  years
in the aggregate after the taxable status date immediately following the
completion thereof, as follows:
  (A)  except as otherwise provided herein there shall be full exemption
from taxation during the period of construction or the period  of  three
years  immediately  following  commencement  of  construction, whichever
expires sooner, EXCEPT FOR NEW MULTIPLE DWELLINGS  THE  CONSTRUCTION  OF
WHICH  COMMENCED  BETWEEN  JANUARY  FIRST,  TWO THOUSAND SEVEN, AND JUNE
THIRTIETH, TWO THOUSAND NINE, SHALL HAVE AN ADDITIONAL THIRTY-SIX MONTHS
TO COMPLETE CONSTRUCTION AND SHALL BE ELIGIBLE FOR FULL  EXEMPTION  FROM
TAXATION  FOR  THE  FIRST THREE YEARS OF THE PERIOD OF CONSTRUCTION; ANY
ELIGIBLE  PROJECT  THAT  SEEKS  TO  UTILIZE  THE  SIX-YEAR   PERIOD   OF
CONSTRUCTION  AUTHORIZED  BY  THIS  SECTION MUST APPLY FOR A PRELIMINARY
CERTIFICATE OF ELIGIBILITY WITHIN ONE YEAR OF THE EFFECTIVE DATE OF  THE
RENT  ACT  OF 2011, PROVIDED, HOWEVER THAT SUCH MULTIPLE DWELLINGS SHALL
BE ELIGIBLE FOR  A  MAXIMUM  OF  THREE  YEARS  OF  BENEFITS  DURING  THE
CONSTRUCTION PERIOD, and for two years following such period;
  (B)  followed  by  two years of exemption from eighty per cent of such
taxation;
  (C) followed by two years of exemption from sixty  per  cent  of  such
taxation;
  (D)  followed  by  two  years of exemption from forty per cent of such
taxation;
  (E) followed by two years of exemption from twenty per  cent  of  such
taxation;
  The  following  table  shall  illustrate  the  computation  of the tax
exemption:

               CONSTRUCTION OF CERTAIN MULTIPLE DWELLINGS

                                                  Exemption
During Construction (maximum three years);        100%

S. 5856                            42                            A. 8518

EXCEPT CONSTRUCTION COMMENCED BETWEEN JANUARY
FIRST, TWO THOUSAND SEVEN AND JUNE
THIRTIETH, TWO THOUSAND NINE (MAXIMUM
THREE YEARS)
Following completion of work
Year:

 1                                                100%
 2                                                100
 3                                                 80
 4                                                 80
 5                                                 60
 6                                                 60
 7                                                 40
 8                                                 40
 9                                                 20
10                                                 20

  S  39. Clause (A) of subparagraph (ii) of paragraph (a) of subdivision
2 of section 421-a of the real property tax law, as amended  by  chapter
288 of the laws of 1985, is amended to read as follows:
  (A) Within a city having a population of one million or more the local
housing  agency may adopt rules and regulations providing that except in
areas excluded by local law new multiple dwellings, except hotels, shall
be exempt from taxation for local purposes, other than  assessments  for
local  improvements,  for  the  tax  year or years immediately following
taxable status dates occurring subsequent to the commencement and  prior
to  the  completion  of  construction,  but not to exceed three such tax
years, EXCEPT FOR NEW  MULTIPLE  DWELLINGS  THE  CONSTRUCTION  OF  WHICH
COMMENCED BETWEEN JANUARY FIRST, TWO THOUSAND SEVEN, AND JUNE THIRTIETH,
TWO  THOUSAND  NINE,  SHALL  HAVE  AN  ADDITIONAL  THIRTY-SIX  MONTHS TO
COMPLETE CONSTRUCTION AND SHALL BE  ELIGIBLE  FOR  FULL  EXEMPTION  FROM
TAXATION  FOR  THE  FIRST THREE YEARS OF THE PERIOD OF CONSTRUCTION; ANY
ELIGIBLE  PROJECT  THAT  SEEKS  TO  UTILIZE  THE  SIX-YEAR   PERIOD   OF
CONSTRUCTION  AUTHORIZED  BY  THIS  SECTION MUST APPLY FOR A PRELIMINARY
CERTIFICATE OF ELIGIBILITY WITHIN ONE YEAR OF THE EFFECTIVE DATE OF  THE
RENT  ACT  OF 2011, PROVIDED, HOWEVER THAT SUCH MULTIPLE DWELLINGS SHALL
BE ELIGIBLE FOR  A  MAXIMUM  OF  THREE  YEARS  OF  BENEFITS  DURING  THE
CONSTRUCTION  PERIOD, and shall continue to be exempt from such taxation
in tax years immediately following the taxable status date first  occur-
ring  after the expiration of the exemption herein conferred during such
construction so long as used  at  the  completion  of  construction  for
dwelling purposes for a period not to exceed fifteen years in the aggre-
gate, as follows:
  a.  except  as otherwise provided herein there shall be full exemption
from taxation during the period of construction or the period  of  three
years  immediately  following  commencement  of  construction, whichever
expires sooner, EXCEPT FOR NEW MULTIPLE DWELLINGS  THE  CONSTRUCTION  OF
WHICH  COMMENCED  BETWEEN  JANUARY  FIRST,  TWO THOUSAND SEVEN, AND JUNE
THIRTIETH, TWO THOUSAND NINE, SHALL HAVE AN ADDITIONAL THIRTY-SIX MONTHS
TO COMPLETE CONSTRUCTION AND SHALL BE ELIGIBLE FOR FULL  EXEMPTION  FROM
TAXATION  FOR  THE  FIRST THREE YEARS OF THE PERIOD OF CONSTRUCTION; ANY
ELIGIBLE  PROJECT  THAT  SEEKS  TO  UTILIZE  THE  SIX-YEAR   PERIOD   OF
CONSTRUCTION  AUTHORIZED  BY  THIS  SECTION MUST APPLY FOR A PRELIMINARY
CERTIFICATE OF ELIGIBILITY WITHIN ONE YEAR OF THE EFFECTIVE DATE OF  THE
RENT  ACT  OF 2011, PROVIDED, HOWEVER THAT SUCH MULTIPLE DWELLINGS SHALL

S. 5856                            43                            A. 8518

BE ELIGIBLE FOR  A  MAXIMUM  OF  THREE  YEARS  OF  BENEFITS  DURING  THE
CONSTRUCTION PERIOD, and for eleven years following such period;
  b. followed by one year of exemption from eighty percent of such taxa-
tion;
  c.  followed by one year of exemption from sixty percent of such taxa-
tion;
  d. followed by one year of exemption from forty percent of such  taxa-
tion;
  e. followed by one year of exemption from twenty percent of such taxa-
tion.
  S 40. Clause (A) of subparagraph (iii) of paragraph (a) of subdivision
2  of  section 421-a of the real property tax law, as amended by chapter
702 of the laws of 1992, is amended to read as follows:
  (A) Within a city having a population of one million or more the local
housing agency may adopt rules and regulations providing that new multi-
ple dwellings, except hotels, shall be exempt from  taxation  for  local
purposes,  other  than  assessments  for local improvements, for the tax
year or years  immediately  following  taxable  status  dates  occurring
subsequent   to   the  commencement  and  prior  to  the  completion  of
construction, but not to exceed three such tax  years,  EXCEPT  FOR  NEW
MULTIPLE  DWELLINGS  THE CONSTRUCTION OF WHICH COMMENCED BETWEEN JANUARY
FIRST, TWO THOUSAND SEVEN, AND JUNE THIRTIETH, TWO THOUSAND NINE,  SHALL
HAVE  AN ADDITIONAL THIRTY-SIX MONTHS TO COMPLETE CONSTRUCTION AND SHALL
BE ELIGIBLE FOR FULL EXEMPTION FROM TAXATION FOR THE FIRST  THREE  YEARS
OF  THE  PERIOD  OF  CONSTRUCTION;  ANY  ELIGIBLE  PROJECT THAT SEEKS TO
UTILIZE THE SIX-YEAR PERIOD OF CONSTRUCTION AUTHORIZED BY  THIS  SECTION
MUST  APPLY FOR A PRELIMINARY CERTIFICATE OF ELIGIBILITY WITHIN ONE YEAR
OF THE EFFECTIVE DATE OF THE RENT ACT OF 2011,  PROVIDED,  HOWEVER  THAT
SUCH  MULTIPLE  DWELLINGS SHALL BE ELIGIBLE FOR A MAXIMUM OF THREE YEARS
OF BENEFITS DURING THE CONSTRUCTION PERIOD, and  shall  continue  to  be
exempt from such taxation in tax years immediately following the taxable
status date first occurring after the expiration of the exemption herein
conferred  during such construction so long as used at the completion of
construction for dwelling purposes for a period not  to  exceed  twenty-
five years in the aggregate, provided that the area in which the project
is situated is a neighborhood preservation program area as determined by
the local housing agency as of June first, nineteen hundred eighty-five,
or  is  a  neighborhood  preservation area as determined by the New York
city planning commission as of June first, nineteen hundred eighty-five,
or is an area that was eligible for mortgage insurance provided  by  the
rehabilitation  mortgage insurance corporation as of May first, nineteen
hundred ninety-two or is an area receiving funding  for  a  neighborhood
preservation  project  pursuant  to the neighborhood reinvestment corpo-
ration act (42 U.S.C. SS180 et seq.)  as of June first, nineteen hundred
eighty-five, as follows:
  a. except as otherwise provided herein there shall be  full  exemption
from  taxation  during the period of construction or the period of three
years immediately  following  commencement  of  construction,  whichever
expires  sooner,  EXCEPT  FOR NEW MULTIPLE DWELLINGS THE CONSTRUCTION OF
WHICH COMMENCED BETWEEN JANUARY FIRST,  TWO  THOUSAND  SEVEN,  AND  JUNE
THIRTIETH, TWO THOUSAND NINE, SHALL HAVE AN ADDITIONAL THIRTY-SIX MONTHS
TO  COMPLETE  CONSTRUCTION AND SHALL BE ELIGIBLE FOR FULL EXEMPTION FROM
TAXATION FOR THE FIRST THREE YEARS OF THE PERIOD  OF  CONSTRUCTION;  ANY
ELIGIBLE   PROJECT   THAT  SEEKS  TO  UTILIZE  THE  SIX-YEAR  PERIOD  OF
CONSTRUCTION AUTHORIZED BY THIS SECTION MUST  APPLY  FOR  A  PRELIMINARY
CERTIFICATE  OF ELIGIBILITY WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THE

S. 5856                            44                            A. 8518

RENT ACT OF 2011, PROVIDED, HOWEVER THAT SUCH MULTIPLE  DWELLINGS  SHALL
BE  ELIGIBLE  FOR  A  MAXIMUM  OF  THREE  YEARS  OF  BENEFITS DURING THE
CONSTRUCTION PERIOD, and for twenty-one years following such period;
  b. followed by one year of exemption from eighty percent of such taxa-
tion;
  c.  followed by one year of exemption from sixty percent of such taxa-
tion;
  d. followed by one year of exemption from forty percent of such  taxa-
tion;
  e. followed by one year of exemption from twenty percent of such taxa-
tion.
  S  41.  The  opening  paragraph  of clause (A) of subparagraph (iv) of
paragraph (a) of subdivision 2 of section 421-a of the real property tax
law, as amended by chapter 618 of the laws of 2007, is amended  to  read
as follows:
  Unless excluded by local law, in the city of New York, the benefits of
this subparagraph shall be available in the borough of Manhattan for new
multiple  dwellings  on tax lots now existing or hereafter created south
of or adjacent to either side of one hundred tenth street  [which]  THAT
commence  construction after July first, nineteen hundred ninety-two and
before [December  twenty-eighth]  JUNE  FIFTEENTH,  two  thousand  [ten]
FIFTEEN only if:
  S  42.  Subparagraph (ii) of paragraph (c) of subdivision 2 of section
421-a of the real property tax law, as amended by  chapter  618  of  the
laws of 2007, is amended to read as follows:
  (ii)  construction  is commenced after January first, nineteen hundred
seventy-five and before [December  twenty-eighth]  JUNE  FIFTEENTH,  two
thousand  [ten] FIFTEEN provided, however, that such commencement period
shall not apply  to  multiple  dwellings  eligible  for  benefits  under
subparagraph (iv) of paragraph (a) of this subdivision;
  S  43.  The  real  property tax law is amended by adding a new section
421-m to read as follows:
  S 421-M. EXEMPTION  OF  CERTAIN  NEW  OR  SUBSTANTIALLY  REHABILITATED
MULTIPLE  DWELLINGS  FROM LOCAL TAXATION. 1. (A) A CITY, TOWN OR VILLAGE
MAY, BY LOCAL LAW, PROVIDE  FOR  THE  EXEMPTION  OF  MULTIPLE  DWELLINGS
CONSTRUCTED  OR SUBSTANTIALLY REHABILITATED IN A BENEFIT AREA DESIGNATED
IN SUCH LOCAL LAW FROM TAXATION AND SPECIAL AD VALOREM LEVIES,  BUT  NOT
SPECIAL  ASSESSMENTS,  AS  PROVIDED  IN  THIS SECTION. SUBSEQUENT TO THE
ADOPTION OF SUCH A LOCAL LAW, ANY OTHER MUNICIPAL CORPORATION  IN  WHICH
THE DESIGNATED BENEFIT AREA IS LOCATED MAY LIKEWISE EXEMPT SUCH PROPERTY
FROM  ITS TAXATION AND SPECIAL AD VALOREM LEVIES BY LOCAL LAW, OR IN THE
CASE OF A SCHOOL DISTRICT, BY RESOLUTION.
  (B) AS USED IN THIS SECTION, THE TERM "BENEFIT AREA"  MEANS  THE  AREA
WITHIN  A  CITY,  TOWN  OR VILLAGE, DESIGNATED BY LOCAL LAW, TO WHICH AN
EXEMPTION, ESTABLISHED PURSUANT TO THIS SECTION, APPLIES.
  (C) THE TERM "SUBSTANTIAL REHABILITATION" MEANS ALL WORK NECESSARY  TO
BRING  A  PROPERTY  INTO  COMPLIANCE  WITH ALL APPLICABLE LAWS AND REGU-
LATIONS INCLUDING BUT NOT LIMITED TO THE  INSTALLATION,  REPLACEMENT  OR
REPAIR  OF  HEATING,  PLUMBING,  ELECTRICAL  AND RELATED SYSTEMS AND THE
ELIMINATION OF ALL HAZARDOUS AND IMMEDIATELY HAZARDOUS VIOLATIONS IN THE
STRUCTURE IN ACCORDANCE WITH STATE AND LOCAL  LAWS  AND  REGULATIONS  OF
STATE  AND  LOCAL AGENCIES.  SUBSTANTIAL REHABILITATION MAY ALSO INCLUDE
RECONSTRUCTION OR WORK TO IMPROVE THE HABITABILITY OR PROLONG THE USEFUL
LIFE OF THE PROPERTY;  PROVIDED  SUBSTANTIAL  REHABILITATION  SHALL  NOT
INCLUDE ORDINARY MAINTENANCE OR REPAIR.

S. 5856                            45                            A. 8518

  (D) THE TERM "MULTIPLE DWELLING" MEANS A DWELLING, OTHER THAN A HOTEL,
WHICH IS TO BE OCCUPIED OR IS OCCUPIED AS THE RESIDENCE OR HOME OF THREE
OR  MORE  FAMILIES  LIVING  INDEPENDENTLY  OF  ONE ANOTHER, WHETHER SUCH
DWELLING IS RENTED OR OWNED AS A COOPERATIVE OR CONDOMINIUM.
  2.  (A) ELIGIBLE NEW OR SUBSTANTIALLY REHABILITATED MULTIPLE DWELLINGS
IN A DESIGNATED BENEFIT AREA SHALL BE EXEMPT ACCORDING TO THE  FOLLOWING
SCHEDULE:
          CONSTRUCTION OR SUBSTANTIAL REHABILITATION OF CERTAIN
                           MULTIPLE DWELLINGS
DURING CONSTRUCTION OR                  EXEMPTION
SUBSTANTIAL REHABILITATION
(MAXIMUM THREE YEARS)                   100%
FOLLOWING COMPLETION OF WORK YEAR:
1 THROUGH 12                            100%
13-14                                    80%
15-16                                    60%
17-18                                    40%
19-20                                    20%
  (B)  PROVIDED THAT TAXES SHALL BE PAID DURING ANY SUCH PERIOD AT LEAST
IN THE AMOUNT OF THE TAXES PAID ON SUCH LAND AND ANY IMPROVEMENTS THERE-
ON DURING THE TAX YEAR PRECEDING THE  COMMENCEMENT  OF  SUCH  EXEMPTION.
PROVIDED  FURTHER THAT NO OTHER EXEMPTION MAY BE GRANTED CONCURRENTLY TO
THE SAME IMPROVEMENTS UNDER ANY OTHER SECTION OF LAW.
  3. TO BE ELIGIBLE FOR EXEMPTION UNDER THIS SECTION:
  (A) SUCH CONSTRUCTION OR SUBSTANTIAL REHABILITATION SHALL  TAKE  PLACE
ON  VACANT,  PREDOMINANTLY  VACANT  OR  UNDER-UTILIZED  LAND, OR ON LAND
IMPROVED WITH A NON-CONFORMING USE OR ON LAND  CONTAINING  ONE  OR  MORE
SUBSTANDARD  OR  STRUCTURALLY  UNSOUND DWELLINGS, OR A DWELLING THAT HAS
BEEN CERTIFIED AS UNSANITARY BY THE LOCAL HEALTH AGENCY.
  (B) SUCH CONSTRUCTION OR SUBSTANTIAL REHABILITATION WAS  COMMENCED  ON
OR  AFTER  THE  EFFECTIVE DATE OF THE LOCAL LAW, ORDINANCE OR RESOLUTION
DESCRIBED IN SUBDIVISION ONE OF THIS SECTION, BUT  NO  LATER  THAN  JUNE
FIFTEENTH, TWO THOUSAND FIFTEEN.
  (C)  AT LEAST TWENTY PERCENT OF THE UNITS SHALL BE AFFORDABLE TO INDI-
VIDUALS OR FAMILIES OF LOW AND MODERATE INCOME WHOSE INCOMES AT THE TIME
OF INITIAL OCCUPANCY DO NOT EXCEED NINETY PERCENT  OF  THE  AREA  MEDIAN
INCOME  ADJUSTED  FOR FAMILY SIZE AND THE INDIVIDUAL OR FAMILY SHALL PAY
IN RENT OR MONTHLY CARRYING CHARGES NO MORE THAN THIRTY PERCENT OF THEIR
ADJUSTED GROSS INCOME AS REPORTED IN THEIR FEDERAL INCOME TAX RETURN, OR
WOULD BE REPORTED IF SUCH  RETURN  WERE  REQUIRED,  LESS  SUCH  PERSONAL
EXEMPTIONS  AND DEDUCTIONS AND MEDICAL EXPENSES AS ARE ACTUALLY TAKEN BY
THE TAXPAYER, AS VERIFIED ACCORDING TO  PROCEDURES  ESTABLISHED  BY  THE
STATE  DIVISION  OF HOUSING AND COMMUNITY RENEWAL. SUCH PROCEDURES SHALL
BE PUBLISHED THROUGH NOTICE IN THE STATE REGISTER WITHOUT FURTHER ACTION
REQUIRED FOR THE PROMULGATION  OF  REGULATIONS  PURSUANT  TO  THE  STATE
ADMINISTRATIVE PROCEDURE ACT.
  (D)  SUCH  CONSTRUCTION  OR  SUBSTANTIAL REHABILITATION IS CARRIED OUT
WITH THE ASSISTANCE OF GRANTS, LOANS OR SUBSIDIES FOR  THE  CONSTRUCTION
OR  SUBSTANTIAL  REHABILITATION  OF AFFORDABLE HOUSING FROM ANY FEDERAL,
STATE OR LOCAL AGENCY OR INSTRUMENTALITY THEREOF.
  4. APPLICATION FOR EXEMPTION UNDER THIS SECTION SHALL  BE  MADE  ON  A
FORM  PRESCRIBED  BY  THE COMMISSIONER AND FILED WITH THE ASSESSOR ON OR
BEFORE THE APPLICABLE TAXABLE STATUS DATE.
  5. IN THE CASE OF PROPERTY WHICH  IS  USED  PARTIALLY  AS  A  MULTIPLE
DWELLING  AND  PARTIALLY  FOR COMMERCIAL OR OTHER PURPOSES, THE PROPERTY
SHALL BE ELIGIBLE FOR THE EXEMPTION AUTHORIZED BY THIS SECTION IF:

S. 5856                            46                            A. 8518

  (A) THE SQUARE FOOTAGE OF THE PORTION  USED  AS  A  MULTIPLE  DWELLING
REPRESENTS  AT  LEAST  FIFTY PERCENT OF THE SQUARE FOOTAGE OF THE ENTIRE
PROPERTY;
  (B) AT LEAST TWENTY PERCENT OF THE UNITS ARE AFFORDABLE TO INDIVIDUALS
OR  FAMILIES  OF LOW AND MODERATE INCOME, AS DETERMINED ACCORDING TO THE
CRITERIA SET FORTH  IN  PARAGRAPH  (C)  OF  SUBDIVISION  THREE  OF  THIS
SECTION; AND
  (C)  THE  REQUIREMENTS  OF  THIS  SECTION ARE OTHERWISE SATISFIED WITH
RESPECT TO THE PORTION OF THE PROPERTY USED AS A MULTIPLE DWELLING.
  6. THE EXEMPTION AUTHORIZED BY THIS SECTION SHALL NOT BE AVAILABLE  IN
A   JURISDICTION  TO  WHICH  THE  PROVISIONS  OF  SECTION  FOUR  HUNDRED
TWENTY-ONE-A OR FOUR HUNDRED TWENTY-ONE-C OF THIS ARTICLE  ARE  APPLICA-
BLE.
  7.  A  CITY,  TOWN  OR  VILLAGE PROVIDING AN EXEMPTION PURSUANT TO THE
AUTHORITY OF THIS SECTION SHALL DEVELOP AN INCOME MONITORING AND COMPLI-
ANCE PLAN TO MEET THE CRITERIA OF PARAGRAPH (C) OF SUBDIVISION THREE  OF
THIS  SECTION AND SUCH PLAN SHALL BE REVIEWED, EVALUATED AND APPROVED BY
THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL AS  A  CONDITION  OF
PROVIDING  SUCH  EXEMPTION.    SUCH PLAN SHALL INCLUDE AN ANNUAL CERTIF-
ICATION THAT THE MULTIPLE DWELLING  RECEIVING  AN  EXEMPTION  MEETS  THE
REQUIREMENTS  OF  THIS  SECTION. SUCH CERTIFICATION SHALL BE PROVIDED TO
THE ASSESSOR AND THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL. IF
SUCH REQUIREMENTS ARE NOT MET, THEN  THE  MULTIPLE  DWELLING  SHALL  NOT
QUALIFY FOR THE EXEMPTION IN THAT YEAR.
  S 44. The division of housing and community renewal shall, pursuant to
this  act, promulgate rules and regulations to implement and enforce all
provisions of this act and any law renewed or continued by this act.
  S 45. Severability clause. If any clause, sentence, paragraph,  subdi-
vision,  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.
  S 46. This act shall take effect immediately and shall  be  deemed  to
have been in full force and effect on and after June 24, 2011; provided,
however, that:
  (a) the amendments to chapter 4 of title 26 of the administrative code
of  the  city  of  New  York  made  by sections seven, twelve, fourteen,
sixteen, thirty-five and thirty-six of this act shall expire on the same
date as such chapter expires and shall not affect the expiration of such
chapter as provided under section 26-520 of such law;
  (b) the amendments to section 4 of chapter 576 of  the  laws  of  1974
constituting  the  emergency  tenant protection act of nineteen seventy-
four made by sections eight, ten, thirteen,  eighteen,  twenty-nine  and
thirty of this act shall expire on the same date as such act expires and
shall not affect the expiration of such act as provided in section 17 of
chapter 576 of the laws of 1974;
  (c)  the amendments to section 2 of the emergency housing rent control
law made by sections nine, twenty-five,  thirty-one  and  thirty-two  of
this act shall expire on the same date as such law expires and shall not
affect  the  expiration  of  such  law  as  provided in subdivision 2 of
section 1 of chapter 274 of the laws of 1946;

S. 5856                            47                            A. 8518

  (d) the amendments to chapter 3 of title 26 of the administrative code
of the city of New York made by sections eleven,  fifteen,  thirty-three
and  thirty-four  of this act shall remain in full force and effect only
as long as the public emergency requiring the regulation and control  of
residential  rents and evictions continues, as provided in subdivision 3
of section 1 of the local emergency housing rent control act;
  (e) the amendments to section 421-a of the real property tax law  made
by sections thirty-eight, thirty-nine, forty, forty-one and forty-two of
this  act  shall  be  deemed to have been in full force and effect as of
December 28, 2010; and
  (f) the amendments made by sections  thirty  through  thirty-seven  of
this act shall not be grounds for dismissal of any owner application for
deregulation  where  a notice or application for such deregulation, that
is filed or served between May 1, 2011 through July 1,  2011,  used  the
income and rent deregulation thresholds in effect prior to the effective
date  of  such sections. Any tenant failure to respond to such notice or
application because of the use of such income or deregulation thresholds
shall constitute grounds to afford such tenant an additional opportunity
to respond.

                                 PART C

  Section 1. This act enacts into law major  components  of  legislation
relating to mandate relief.  Each component is wholly contained within a
Subpart  identified as Subparts A through H. The effective date for each
particular provision contained within such Subpart is set forth  in  the
last  section  of  such  Subpart. Any provision in any section contained
within a Subpart, including the effective date  of  the  Subpart,  which
makes  a  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 Subpart in which it is found. Section three
of this act sets forth the general effective date of this act.

                                SUBPART A

  Section 1. Subdivisions 3 and 5 of section 97-g of the  state  finance
law,  subdivision  3 as amended by section 45 of part K of chapter 81 of
the laws of 2002 and subdivision 5 as added by chapter 710 of  the  laws
of 1964, are amended to read as follows:
  3. Moneys of the fund shall be available to the commissioner of gener-
al  services for the purchase of food, supplies and equipment for [state
institutions and other] state agencies, and for the purpose of  furnish-
ing  or providing centralized services to or for [state institutions and
other] state agencies; PROVIDED FURTHER THAT SUCH MONEYS SHALL BE AVAIL-
ABLE TO THE COMMISSIONER OF GENERAL SERVICES FOR  PURPOSES  PURSUANT  TO
ITEMS  (D)  AND  (F) OF SUBDIVISION FOUR OF THIS SECTION TO OR FOR POLI-
TICAL SUBDIVISIONS. Beginning the first day of April, two thousand  two,
moneys  in  such fund shall also be transferred by the state comptroller
to the revenue bond tax fund account of the general debt service fund in
amounts equal to those required for payments to authorized  issuers  for
revenue  bonds issued pursuant to article five-C of this chapter for the
purpose of lease purchases and installment purchases  by  or  for  state
agencies and institutions for personal or real property purposes.
  5.  The  amount  expended from such fund for the above-stated purposes
shall be charged against the [state institution or] agency OR  POLITICAL

S. 5856                            48                            A. 8518

SUBDIVISIONS ABOVE receiving such food, supplies, equipment and services
and all payments received therefor shall be credited to such fund.
  S  2.  Subdivision  4  of  section  97-g  of the state finance law, as
amended by chapter 410 of the laws  of  2009,  is  amended  to  read  as
follows:
  4.  The term "centralized services" as used in this section shall mean
and include only (a) communications services, (b)  mail,  messenger  and
reproduction  services,  (c)  computer  services,  (d)  fuels, including
natural gas, hydrogen, biofuels and gasoline, and  automotive  services,
(e)  renovation  and maintenance services, (f) purchases of electricity,
renewable energy, renewable energy credits or attributes from the  power
authority  of  the state of New York and, in consultation with the power
authority of the state of New York, from other suppliers, (g) real prop-
erty management services, (h) building design and construction services,
(i) parking services, (j) distribution of United  States  department  of
agriculture donated foods to eligible recipients, pursuant to all appli-
cable  statutes  and  regulations,  (k)  distribution of federal surplus
property donations to all eligible recipients,  pursuant  to  applicable
statutes  and  regulations,  and  (l)  payments and related services for
lease purchases and installment purchases by or for state  agencies  and
institutions  for  personal property purposes financed through the issu-
ance of certificates of participation. The services defined in items (a)
through (C), (E), (G) AND (h) of this subdivision shall be  provided  to
state agencies and institutions only.
  S 3. Intentionally omitted
  S  4.  Section 103 of the general municipal law is amended by adding a
new subdivision 1-b to read as follows:
  1-B. A POLITICAL SUBDIVISION OR ANY DISTRICT THEREIN  SHALL  HAVE  THE
OPTION OF PURCHASING INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS HARD-
WARE,  SOFTWARE AND PROFESSIONAL SERVICES THROUGH COOPERATIVE PURCHASING
PERMISSIBLE PURSUANT TO FEDERAL GENERAL SERVICES ADMINISTRATION INFORMA-
TION TECHNOLOGY SCHEDULE SEVENTY OR ANY SUCCESSOR SCHEDULE. A  POLITICAL
SUBDIVISION  OR  ANY  DISTRICT  THEREIN  THAT  PURCHASES THROUGH GENERAL
SERVICES ADMINISTRATION SCHEDULE  SEVENTY,  INFORMATION  TECHNOLOGY  AND
CONSOLIDATED  SCHEDULE  CONTRACTS  SHALL  COMPLY  WITH  FEDERAL SCHEDULE
ORDERING  PROCEDURES  AS  PROVIDED  IN  FEDERAL  ACQUISITION  REGULATION
8.405-1  OR  8.405-2  OR SUCCESSOR REGULATIONS, WHICHEVER IS APPLICABLE.
ADHERENCE TO  SUCH  PROCEDURES  SHALL  CONSTITUTE  COMPLIANCE  WITH  THE
COMPETITIVE BIDDING REQUIREMENTS UNDER THIS SECTION.
  S  5.  Subdivision  3  of section 103 of the general municipal law, as
amended by chapter 343 of the laws  of  2007,  is  amended  to  read  as
follows:
  3.  Notwithstanding the provisions of subdivision one of this section,
any officer, board or agency  of  a  political  subdivision  or  of  any
district therein authorized to make purchases of materials, equipment or
supplies,  or  to contract for services, may make such purchases, or may
contract for services, other than services subject to article [eight or]
nine of the labor law, when available, through the county in  which  the
political subdivision or district is located or through any county with-
in  the  state  subject to the rules established pursuant to subdivision
two of section four hundred eight-a of the county law; provided that the
political subdivision or district for which such officer, board or agen-
cy acts shall accept sole responsibility for any payment due the  vendor
or  contractor.  All purchases and all contracts for such services shall
be subject to audit and  inspection  by  the  political  subdivision  or
district for which made. Prior to making such purchases or contracts the

S. 5856                            49                            A. 8518

officer,  board  or  agency  shall  consider whether such contracts will
result in cost savings after all factors, including charges for service,
material, and delivery, have been considered. No officer, board or agen-
cy  of a political subdivision or of any district therein shall make any
purchase or contract for any such services through the county  in  which
the  political  subdivision or district is located or through any county
within the state when bids have been received for such purchase or  such
services  by  such officer, board or agency, unless such purchase may be
made or the contract for such services may be entered into upon the same
terms, conditions and specifications at a lower price through the  coun-
ty.
  S  6.  Subdivision 2 of section 408-a of the county law, as amended by
section 2 of part X of chapter 62 of the laws of  2003,  is  amended  to
read as follows:
  2.  The board of supervisors may, in the case of any purchase contract
or any contract for services, other than  services  subject  to  article
[eight  or]  nine  of  the labor law, of the county to be awarded to the
lowest responsible bidder after advertisement for  bids,  authorize  the
inclusion  of a provision whereby purchases may be made or such services
may be obtained under such contract by any political subdivision or fire
company (as both are defined in  section  one  hundred  of  the  general
municipal  law)  or district. In such event, the board shall adopt rules
prescribing the  conditions  under  which,  and  the  manner  in  which,
purchases  may  be  made  or  services may be obtained by such political
subdivision, fire company or district.
  S 7. Section 104 of the general municipal law, as amended  by  chapter
137 of the laws of 2008, is amended to read as follows:
  S  104.  Purchase  through office of general services; CERTAIN FEDERAL
CONTRACTS. 1. Notwithstanding the  provisions  of  section  one  hundred
three of this article or of any other general, special or local law, any
officer, board or agency of a political subdivision, of a district ther-
ein, of a fire company or of a voluntary ambulance service authorized to
make  purchases  of materials, equipment, food products, or supplies, or
services available pursuant to sections one hundred  sixty-one  and  one
hundred  sixty-seven  of the state finance law, may make such purchases,
except of printed material,  through  the  office  of  general  services
subject  to  such rules as may be established from time to time pursuant
to sections one hundred sixty-three and one hundred sixty-seven  of  the
state finance law [or through the general services administration pursu-
ant to section 1555 of the federal acquisition streamlining act of 1994,
P.L. 103-355]; provided that any such purchase shall exceed five hundred
dollars  and  that  the political subdivision, district, fire company or
voluntary ambulance service for which such officer, board or agency acts
shall accept sole responsibility for any payment  due  the  vendor.  All
purchases  shall  be  subject  to  audit and inspection by the political
subdivision, district, fire company or voluntary ambulance  service  for
which made. No officer, board or agency of a political subdivision, or a
district  therein, of a fire company or of a voluntary ambulance service
shall make any purchase through such office when bids have been received
for such purchase by such officer, board or agency, unless such purchase
may be made upon the same terms,  conditions  and  specifications  at  a
lower price through such office. Two or more fire companies or voluntary
ambulance  services  may  join  in  making  purchases  pursuant  to this
section, and for the purposes of  this  section  such  groups  shall  be
deemed "fire companies or voluntary ambulance services."

S. 5856                            50                            A. 8518

  2. NOTWITHSTANDING THE PROVISIONS OF SECTION ONE HUNDRED THREE OF THIS
ARTICLE  OR  OF  ANY  OTHER  GENERAL, SPECIAL OR LOCAL LAW, ANY OFFICER,
BOARD OR AGENCY OF A POLITICAL SUBDIVISION, OR OF  A  DISTRICT  THEREIN,
MAY  MAKE  PURCHASES  FROM FEDERAL GENERAL SERVICE ADMINISTRATION SUPPLY
SCHEDULES  PURSUANT  TO  SECTION  211 OF THE FEDERAL E-GOVERNMENT ACT OF
2002, P.L. 107-347, AND PURSUANT TO SECTION 1122 OF THE NATIONAL DEFENSE
AUTHORIZATION ACT FOR FISCAL YEAR 1994, P.L. 103-160, OR  ANY  SUCCESSOR
SCHEDULES  IN  ACCORDANCE  WITH PROCEDURES ESTABLISHED PURSUANT THERETO.
PRIOR TO MAKING SUCH  PURCHASES  THE  OFFICER,  BOARD  OR  AGENCY  SHALL
CONSIDER  WHETHER  SUCH  PURCHASES WILL RESULT IN COST SAVINGS AFTER ALL
FACTORS, INCLUDING CHARGES FOR SERVICE,  MATERIAL,  AND  DELIVERY,  HAVE
BEEN CONSIDERED.
  S  8.  Subdivision  2 of section 27 of the municipal home rule law, as
amended by chapter 259 of the laws  of  1987,  is  amended  to  read  as
follows:
  2.  Each  such certified copy shall contain the text only of the local
law without the brackets and without the matter within the brackets, the
matter with a line run through it, or the italicizing  or  underscoring,
if any, to indicate the changes made by it, except that each such certi-
fied  copy  of  a  local  law enacted by a city with a population of one
million or more shall be printed in the same form as the  official  copy
of  the proposed local law which became the local law provided that line
numbers, the printed number of the bill and explanatory matter shall  be
omitted[,  and  also have attached thereto a certificate executed by the
corporation counsel, municipal attorney or other principal  law  officer
to  the  effect  that  it  contains the correct text and that all proper
proceedings have been had or taken for the enactment of such local  law,
which   certificate   shall  constitute  presumptive  evidence  thereof,
provided that any failure or omission so to certify shall not invalidate
such local law].
  S 9. This act shall take effect immediately, provided, however that:
  1. sections one, four, five, six and seven of this  act  shall  expire
and be deemed repealed 3 years after they shall have become a law;
  2.  the  amendments  to  subdivision  4  of  section 97-g of the state
finance law made by section two of this act shall not affect the expira-
tion and reversion of such subdivision as provided in section 3 of chap-
ter 410 of the laws of 2009, and shall expire  and  be  deemed  repealed
therewith;
  3.  sections  four, five, six and seven of this act shall apply to any
contract let or awarded on or after such effective date.

                                SUBPART B

  Section 1. Section 99-r of the general municipal law,  as  amended  by
section  1  of  part B of chapter 494 of the laws of 2009, is amended to
read as follows:
  S 99-r. Contracts for services. Notwithstanding any  other  provisions
of law to the contrary, the governing board of any municipal corporation
may enter into agreements and/or contracts with any state agency includ-
ing  any  department, board, bureau, commission, division, office, coun-
cil, committee, or officer of the state, whether permanent or temporary,
or a public benefit corporation or public authority, or a soil and water
conservation district, and any unit of the state university of New York,
pursuant to and consistent with sections three  hundred  fifty-five  and
sixty-three  hundred  one  of  the  education law within or without such
municipal corporation to provide or receive fuel, equipment, maintenance

S. 5856                            51                            A. 8518

and repair, supplies, water  supply,  street  sweeping  or  maintenance,
sidewalk  maintenance,  right-of-way  maintenance, storm water and other
drainage, sewage disposal, landscaping, mowing, or any other services of
government.  Such state agency, soil and water conservation district, or
unit of the state university of New  York,  within  the  limits  of  any
specific  statutory appropriation authorized and made available therefor
by the legislature or by the governing body responsible for  the  opera-
tion of such state agency, soil and water conservation district, or unit
of  the  state  university  of  New York may contract with any municipal
corporation for such services as herein provided  AND  MAY  PROVIDE,  IN
AGREEMENTS  AND/OR  CONTRACTS ENTERED INTO PURSUANT TO THIS SECTION, FOR
THE RECIPROCAL PROVISION OF SERVICES OR OTHER CONSIDERATION OF  APPROXI-
MATELY  EQUIVALENT  VALUE, INCLUDING, BUT NOT LIMITED TO, ROUTINE AND/OR
EMERGENCY SERVICES, MONIES, EQUIPMENT, BUILDINGS AND FACILITIES, MATERI-
ALS OR A COMMITMENT TO PROVIDE FUTURE ROUTINE AND/OR EMERGENCY SERVICES,
MONIES, EQUIPMENT, BUILDINGS  AND  FACILITIES  OR  MATERIALS.  Any  such
contract  may  be  entered  into by direct negotiations and shall not be
subject to the provisions of section one hundred three of this chapter.
  S 2. Paragraph (e) of subdivision 4 of section  10-c  of  the  highway
law,  as  amended by chapter 413 of the laws of 1991, is amended to read
as follows:
  (e) Funds allocated for local street or highway  projects  under  this
subdivision shall be used to undertake work on a project either with the
municipality's own forces or by contract, provided however, that whenev-
er  the  estimate for the construction contract work exceeds one hundred
thousand dollars BUT DOES NOT EXCEED TWO HUNDRED FIFTY THOUSAND  DOLLARS
SUCH WORK MUST BE PERFORMED EITHER WITH THE MUNICIPALITY'S OWN FORCES OR
BY  CONTRACT LET BY COMPETITIVE BID IN ACCORDANCE WITH THE PROVISIONS OF
SECTION ONE HUNDRED THREE OF THE  GENERAL  MUNICIPAL  LAW  AND  PROVIDED
FURTHER,  HOWEVER,  THAT  WHENEVER  THE  ESTIMATE  FOR  THE CONSTRUCTION
CONTRACT WORK EXCEEDS TWO HUNDRED FIFTY THOUSAND DOLLARS such work  must
be  performed  by contract let by competitive bid in accordance with the
provisions of section one hundred three of the general municipal law.
  S 3. Section 102 of the general municipal law, as added by chapter 861
of the laws of 1953 and subdivision 2 as amended by chapter 537  of  the
laws of 1984, is amended to read as follows:
  S  102. Deposits on plans  and specifications.  1. Notwithstanding any
inconsistent provision of any general, special or local law,  the  offi-
cer,  board  or  agency  of any political subdivision or of any district
therein, charged with the duty of preparing plans and specifications for
and awarding or entering into contracts for the  performance  of  public
work,  [shall] MAY require, as a deposit to guarantee the safe return of
such plans and specifications, the payment of a fixed sum of money,  not
exceeding  one  hundred  dollars  for  each  copy thereof, by persons or
corporations desiring a copy thereof. Any person or corporation desiring
a copy of such plans and specifications and making the [deposit] PAYMENT
required by this section shall be furnished with one copy of  the  plans
and specifications.
  2. If a proposal is duly submitted by any person or corporation making
the deposit required by subdivision one and such proposal is accompanied
by  a  certified check or other security in accordance with the require-
ments contained in the plans and specifications or in the public  adver-
tisement  for bids, and if the copy of the plans and specifications used
by such person or corporation, other  than  the  successful  bidder,  is
returned in good condition within thirty days following the award of the
contract  covered  by  such plans and specifications or the rejection of

S. 5856                            52                            A. 8518

the bid of such person or corporation, the full amount of  such  deposit
for  one  copy of the plans and specifications shall be returned to such
person  or  corporation,  including  the  successful   bidder.   Partial
reimbursement, in an amount equal to the full amount of such deposit for
one  set of plans and specifications per unsuccessful bidder or non-bid-
der less the actual cost of reproduction of the plans and specifications
as determined by the officer, board or agency of any political  subdivi-
sion  or of any district therein, charged with the duty of preparing the
plans and specifications, shall be made for  the  return  of  all  other
copies  of  the plans and specifications in good condition within thirty
days following the award of the contract or the rejection  of  the  bids
covered by such plans and specifications.
  S 4. This act shall take effect immediately.

                                SUBPART C

  Section  1.   Section 72-c of the general municipal law, as amended by
chapter 229 of the laws of 1992, is amended to read as follows:
  S 72-c. Expenses of members of the police department and  other  peace
officers  in  attending  police training schools. The board or body of a
county, city, town or village authorized to  appropriate  and  to  raise
money  by taxation and to make payments therefrom, is hereby authorized,
in its discretion, to appropriate and to raise money by taxation and  to
make  payments  from such moneys, for the annual expenses of the members
of the police department of such municipal corporation  in  attending  a
police  training  school,  as provided by the regulations of the depart-
ment, either within such municipal corporation or elsewhere  within  the
state;  and  for  the payment of reasonable expenses of such members and
other police officers or peace officers of the municipality while  going
to,  attending,  and  returning from any training school conducted by or
under the auspices of the federal bureau of investigation, whether with-
in or without the state. Notwithstanding any inconsistent  provision  of
any  general, special or local law to the contrary, whenever a member of
the police department of a municipal corporation[, having  a  population
of  ten  thousand  or  less,] has attended a police training school, the
expense of which was borne by  such  municipal  corporation,  terminates
employment with such municipal corporation and commences employment with
any other municipal corporation or employer county sheriff, such employ-
er  municipal corporation or employer county sheriff shall reimburse the
prior employer municipal corporation[, having a population of ten  thou-
sand or less,] for such expenses, including, salary, tuition, enrollment
fees, books, and the cost of transportation to and from training school,
as  follows:  on  a pro rata basis, to be calculated by subtracting from
the number of days in the three years following the date of the member's
graduation from police training school, the number of days  between  the
date of the member's graduation from training school and the date of the
termination  of employment with the municipal corporation which paid for
such training, and multiplying the difference by the per  diem  cost  of
such  expenses,  to  be  calculated  by  dividing the total cost of such
expenses by the number of days in the three years following the date  of
the  member's  graduation,  if  such  change in employment occurs within
three years of such member's graduation  from  police  training  school.
Provided, however, the employer municipal corporation or employer county
sheriff  shall not be required to reimburse the prior employer municipal
corporation for that portion of such expenses which is  reimbursable  by
the  member  to the prior employer municipal corporation under the terms

S. 5856                            53                            A. 8518

of an employment or labor agreement.  Provided,  further,  however,  the
employer  municipal  corporation or employer county sheriff shall not be
required to reimburse the prior employer municipal corporation for  such
basic  training if such change in employment occurs after the expiration
of the validity of the member's certificate attesting to  the  satisfac-
tory completion of an approved municipal police basic training program.
  S 2. Section 207-m of the general municipal law is REPEALED.
  S  3.  The  opening  paragraph  and  paragraph (l) of subdivision 4 of
section 20.40 of the criminal procedure law, paragraph (l) as amended by
chapter 346 of the laws of 2007, are amended to read as follows:
  A person may be convicted  in  an  appropriate  criminal  court  of  a
particular  county,  of  an offense of which the criminal courts of this
state have jurisdiction pursuant to section 20.20, committed  either  by
his  OR HER own conduct or by the conduct of another for which he OR SHE
is legally accountable pursuant to section 20.00 of the penal law, when:
  (l) An offense of identity theft or unlawful  possession  of  personal
[identification] IDENTIFYING information AND ALL CRIMINAL ACTS COMMITTED
AS  PART  OF THE SAME CRIMINAL TRANSACTION AS DEFINED IN SUBDIVISION TWO
OF SECTION 40.10 OF THIS CHAPTER may be prosecuted (i) in any county  in
which part of the offense took place regardless of whether the defendant
was  actually present in such county, or (ii) in the county in which the
person who suffers financial loss resided at the time of the  commission
of  the  offense, or (iii) in the county where the person whose personal
[identification] IDENTIFYING information was used in the  commission  of
the  offense  resided  at the time of the commission of the offense. The
law enforcement agency of any such county shall take a police report  of
the  matter and provide the complainant with a copy of such report at no
charge.
  S 4. Section 176 of the  family  court  act  is  amended  to  read  as
follows:
  S  176. Inter-county probation. [If a person placed under probation by
the family court resides in or moves to a county other than  the  county
in  which  he was placed on probation, the family court which placed him
on probation may transfer the proceedings to the  county  in  which  the
probationer  resides or to which he has moved or may place him under the
supervision of the probation service attached to  the  family  court  in
which the probationer resides or to which he has moved.]
  1.  WHERE A PERSON PLACED ON PROBATION RESIDES IN ANOTHER JURISDICTION
WITHIN THE STATE AT THE TIME OF THE ORDER  OF  DISPOSITION,  THE  FAMILY
COURT WHICH PLACED HIM OR HER ON PROBATION SHALL TRANSFER SUPERVISION TO
THE  PROBATION  DEPARTMENT  IN  THE  JURISDICTION  IN  WHICH  THE PERSON
RESIDES. WHERE, AFTER A PROBATION DISPOSITION IS  PRONOUNCED,  A  PROBA-
TIONER  REQUESTS TO RESIDE IN ANOTHER JURISDICTION WITHIN THE STATE, THE
FAMILY  COURT  WHICH  PLACED  HIM  OR  HER  ON  PROBATION  MAY,  IN  ITS
DISCRETION,  APPROVE  A  CHANGE  IN  RESIDENCY AND, UPON APPROVAL, SHALL
TRANSFER SUPERVISION TO THE PROBATION DEPARTMENT SERVING THE  COUNTY  OF
THE PROBATIONER'S PROPOSED NEW RESIDENCE. ANY TRANSFER UNDER THIS SUBDI-
VISION  MUST  BE IN ACCORDANCE WITH RULES ADOPTED BY THE COMMISSIONER OF
THE DIVISION OF CRIMINAL JUSTICE SERVICES.
  2. UPON COMPLETION OF A TRANSFER AS AUTHORIZED PURSUANT TO SUBDIVISION
ONE OF THIS SECTION, THE FAMILY COURT WITHIN  THE  JURISDICTION  OF  THE
RECEIVING PROBATION DEPARTMENT SHALL ASSUME ALL POWERS AND DUTIES OF THE
FAMILY  COURT  WHICH  PLACED THE PROBATIONER ON PROBATION AND SHALL HAVE
SOLE JURISDICTION IN THE CASE. THE FAMILY COURT WHICH PLACED THE  PROBA-
TIONER  ON PROBATION SHALL IMMEDIATELY FORWARD ITS ENTIRE CASE RECORD TO
THE RECEIVING COURT.

S. 5856                            54                            A. 8518

  3. UPON COMPLETION OF A TRANSFER AS AUTHORIZED PURSUANT TO SUBDIVISION
ONE OF THIS SECTION, THE PROBATION DEPARTMENT IN THE RECEIVING JURISDIC-
TION SHALL ASSUME ALL POWERS AND DUTIES OF THE PROBATION  DEPARTMENT  IN
THE  JURISDICTION  OF  THE  FAMILY COURT WHICH PLACED THE PROBATIONER ON
PROBATION.
  S  5.  The mental hygiene law is amended by adding a new section 29.28
to read as follows:
S 29.28 PAYMENT OF COSTS FOR PROSECUTION OF INMATE-PATIENTS.
  (A) WHEN AN INMATE-PATIENT, AS DEFINED IN SUBDIVISION (A)  OF  SECTION
29.27  OF  THIS  ARTICLE,  WHO  WAS  COMMITTED FROM A STATE CORRECTIONAL
FACILITY, IS ALLEGED TO HAVE COMMITTED AN OFFENSE WHILE IN  THE  CUSTODY
OF  THE  DEPARTMENT,  THE DEPARTMENT OF CORRECTIONS AND COMMUNITY SUPER-
VISION SHALL PAY ALL  REASONABLE  COSTS  FOR  THE  PROSECUTION  OF  SUCH
OFFENSE, INCLUDING BUT NOT LIMITED TO, COSTS FOR: A GRAND JURY IMPANELED
TO  HEAR  AND EXAMINE EVIDENCE OF SUCH OFFENSE, PETIT JURORS, WITNESSES,
THE DEFENSE OF ANY  INMATE  FINANCIALLY  UNABLE  TO  OBTAIN  COUNSEL  IN
ACCORDANCE WITH THE PROVISIONS OF THE COUNTY LAW, THE DISTRICT ATTORNEY,
THE COSTS OF THE SHERIFF AND THE APPOINTMENT OF ADDITIONAL COURT ATTEND-
ANTS, OFFICERS OR OTHER JUDICIAL PERSONNEL.
  (B)  IT  SHALL BE THE DUTY OF THE GOVERNING BODY OF ANY COUNTY WHEREIN
SUCH PROSECUTION OCCURS TO CAUSE A SWORN STATEMENT OF ALL  COSTS  TO  BE
FORWARDED  TO  THE DEPARTMENT. UPON CERTIFICATION BY THE DEPARTMENT THAT
SUCH COSTS AS AUTHORIZED BY THIS STATUTE HAVE BEEN INCURRED, THE DEPART-
MENT SHALL FORWARD THE PROPER VOUCHERS  TO  THE  STATE  COMPTROLLER.  IT
SHALL  BE  THE  DUTY OF THE COMPTROLLER TO EXAMINE SUCH STATEMENT AND TO
CORRECT SAME BY STRIKING THEREFROM ANY  AND  ALL  ITEMS  WHICH  ARE  NOT
AUTHORIZED PURSUANT TO THE PROVISIONS OF THIS SECTION AND AFTER CORRECT-
ING  SUCH  STATEMENT,  THE  COMPTROLLER  SHALL  DRAW HIS WARRANT FOR THE
AMOUNT OF ANY SUCH COSTS IN FAVOR OF THE APPROPRIATE  COUNTY  TREASURER,
WHICH  SUM  SHALL  BE  PAID  TO  SAID COUNTY TREASURER OUT OF ANY MONEYS
APPROPRIATED THEREFOR.
  (C) THE DEPARTMENT SHALL, AFTER CONSULTATION WITH THE DIRECTOR OF  THE
BUDGET,  PROMULGATE RULES AND REGULATIONS TO CARRY OUT THE PROVISIONS OF
THIS SECTION.
  S 6. This act shall take effect immediately,  provided,  that  section
five  of  this act shall take effect on the thirtieth day after it shall
have become law.

                                SUBPART D

  Section 1. Section 514 of the general municipal  law,  as  amended  by
chapter 492 of the laws of 1963, is amended to read as follows:
  S  514.  Filing of proposed plans.  The municipality or agency, as the
case may be, shall file with the  commissioner  a  copy  of  [each]  ANY
proposed  urban renewal program ASSISTED BY STATE LOANS, PERIODIC SUBSI-
DIES OR CAPITAL GRANTS, embodying the plans, layout, estimated cost  and
proposed [methed] METHOD of financing. Any change made in [the] AN urban
renewal  program  ASSISTED BY STATE LOANS, PERIODIC SUBSIDIES OR CAPITAL
GRANTS shall be filed with the commissioner. From time to time prior  to
completion,  and  with  reasonable  promptness  after  [each]  ANY urban
renewal program ASSISTED BY STATE LOANS, PERIODIC SUBSIDIES  OR  CAPITAL
GRANTS  shall have been completed, upon request of the commissioner, the
municipality or agency shall  file  with  the  commissioner  a  detailed
statement of the cost thereof.
  Upon  receipt  of  a  copy of a proposed urban renewal program, or any
proposed change therein, the commissioner may transmit his criticism and

S. 5856                            55                            A. 8518

suggestions to the municipality or agency, as the case may be. No change
in an urban renewal program assisted by state loans, periodic  subsidies
or  capital  grants  may be made by a municipality or agency without the
approval of the commissioner.
  S  2.  Subdivision  1  of section 553 of the general municipal law, as
amended by chapter 681 of the laws of 1963, subparagraph 1 of  paragraph
(a) as amended by chapter 213 of the laws of 1966, is amended to read as
follows:
  1.  (a)  Upon the establishment of a municipal urban renewal agency by
special act of the legislature, the mayor of the city or village wherein
such agency is established, or the town board of the  town,  shall  file
within  six  months  after  the effective date of the special act of the
legislature establishing such agency or before the first  day  of  July,
nineteen  hundred  sixty-four,  whichever  date  shall be later, [in the
office of the commissioner, and a duplicate] in the office of the secre-
tary of state, a certificate signed by him setting forth: (1) the effec-
tive date of the special act establishing the agency; (2)  the  name  of
the  agency;  (3)  the  names  of the members and their terms of office,
specifying which member is the chairman; and (4) facts establishing  the
need for the establishment of an agency in such city, town or village.
  (b)  Every  such agency shall be perpetual in duration, except that if
[(1) such certificate is not filed with and approved by the commissioner
within six months after the effective date of the  special  act  of  the
legislature  establishing  such  agency or before the first day of July,
nineteen hundred sixty-four, whichever date shall be later, or if  (2)],
at  the  expiration of ten years subsequent to the effective date of the
special act, there shall be outstanding no bonds  or  other  obligations
theretofore  issued by such agency or by the municipality for OR on [in]
behalf of the agency, then the corporate existence of such agency  shall
thereupon  terminate and it shall [there upon] THEREUPON be deemed to be
and shall be dissolved.
  S 3. Subdivision 2 of section 553 of the  general  municipal  law,  as
added by chapter 921 of the laws of 1962, is amended to read as follows:
  2.  An agency shall be a corporate governmental agency, constituting a
public benefit corporation. Except as otherwise provided by special  act
of  the  Legislature, an agency shall consist of not less than three nor
more than five members who shall be appointed by the mayor of a city  or
village  or the town board of a town and who shall serve at the pleasure
of the appointing authority. A member  shall  continue  to  hold  office
until  his successor is appointed and has qualified. The mayor of a city
or village, or the town board of  a  town,  shall  designate  the  first
chairman [and file with the commissioner a certificate of appointment or
re-appointment  of  any  member].  Such members shall receive no compen-
sation for their  services  but  shall  be  entitled  to  the  necessary
expenses,  including  traveling  expenses,  incurred in the discharge of
their duties.
  S 4.  This act shall take effect immediately.

                                SUBPART E

  Section 1.  Section 410-x of the social services  law  is  amended  by
adding a new subdivision 8 to read as follows:
  8.  NOTWITHSTANDING  ANY  PROVISION OF LAW TO THE CONTRARY, CHILD CARE
ASSISTANCE PAYMENTS MADE PURSUANT TO THIS SECTION MAY BE MADE BY  DIRECT
DEPOSIT  OR  DEBIT  CARD,  AS ELECTED BY THE RECIPIENT, AND ADMINISTERED
ELECTRONICALLY, AND IN ACCORDANCE WITH SUCH GUIDELINES, AS  MAY  BE  SET

S. 5856                            56                            A. 8518

FORTH  BY  REGULATION OF THE OFFICE OF CHILDREN AND FAMILY SERVICES. THE
OFFICE OF CHILDREN AND FAMILY  SERVICES  MAY  ENTER  INTO  CONTRACTS  ON
BEHALF  OF  LOCAL  SOCIAL  SERVICES DISTRICTS FOR SUCH DIRECT DEPOSIT OR
DEBIT  CARD  SERVICES  IN  ACCORDANCE  WITH SECTION TWENTY-ONE-A OF THIS
CHAPTER.
  S 2. Subdivision 2 of section 378  of  the  social  services  law,  as
amended  by  chapter  555  of  the  laws  of 1978, is amended to read as
follows:
  2. Such certificates and licenses shall be valid  for  not  more  than
[one  year] TWO YEARS after date of issue but may be renewed or extended
subject to regulations established by the [department] OFFICE  OF  CHIL-
DREN AND FAMILY SERVICES.
  S 3. This act shall take effect immediately.

                                SUBPART F

  Section  1.    Subdivision  1 of section 3241 of the education law, as
amended by chapter 971 of the laws  of  1969,  is  amended  to  read  as
follows:
  1.  The  board  of  education  of each city, except in cities having a
population of one hundred twenty-five thousand or more, shall constitute
a permanent census board in such city. Such board shall, under its regu-
lations, cause a census of the children in its city to be taken  and  to
be  amended  from  day to day, as changes of residence shall occur among
persons in such cities within the ages prescribed in subdivision two  of
this  section and as other persons shall come within the ages prescribed
therein and as other persons within such ages shall become residents  of
such  cities,  so  that  there shall always be on file with such board a
complete census giving the facts and information required in subdivision
two of this section; PROVIDED, HOWEVER,  THAT  FOR  PRE-SCHOOL  STUDENTS
FROM  BIRTH  TO FIVE YEARS OF AGE, SUCH CENSUS MAY BE PREPARED AND FILED
BIENNIALLY ON OR BEFORE THE FIFTEENTH DAY OF OCTOBER.
  S 2. Section 3242 of the education law, as amended by chapter  425  of
the laws of 1993, is amended to read as follows:
  S 3242. School  census  in school districts.  The trustees or board of
education of every school district may cause a census to be taken of all
children between birth and eighteen years of  age,  including  all  such
facts  and  information  as  are  required in the census provided for in
section thirty-two hundred forty-one of this chapter. Such census  shall
be prepared ANNUALLY FOR CHILDREN BETWEEN AGES FIVE AND EIGHTEEN WHO ARE
ENTITLED  TO  ATTEND  THE  PUBLIC  SCHOOLS WITHOUT PAYMENT OF TUITION in
duplicate in their respective school districts,  and  one  copy  thereof
filed  with  the  teacher or principal and the other copy filed with the
district superintendent or superintendent on  or  before  the  [fifteen]
FIFTEENTH  day  of  October.  FOR PRE-SCHOOL STUDENTS FROM BIRTH TO FIVE
YEARS OF AGE, SUCH CENSUS MAY BE PREPARED AND  FILED  BIENNIALLY  ON  OR
BEFORE  THE  FIFTEENTH  DAY  OF  OCTOBER.  Such census shall include the
reports and information required from  cities  as  provided  in  section
thirty-two  hundred  forty-one. All information regarding a [handicapped
person] STUDENT WITH A DISABILITY under  the  age  of  twenty-one  years
shall  be filed annually with the superintendent of the board of cooper-
ative educational services of which said district may be a part.
  S 3.  Section 3635 of the education law is amended  by  adding  a  new
subdivision 8 to read as follows:
  8.  A. THE TRUSTEES OR BOARD OF EDUCATION OF A SCHOOL DISTRICT MAY, AT
ITS DISCRETION, PROVIDE STUDENT TRANSPORTATION BASED  UPON  PATTERNS  OF

S. 5856                            57                            A. 8518

ACTUAL  RIDERSHIP.  THE ACTUAL RIDERSHIP SHALL BE DETERMINED BY A SCHOOL
DISTRICT BASED UPON DOCUMENTED HISTORY  AND  EXPERIENCE  THAT  YIELDS  A
CONSISTENT PATTERN OF ELIGIBLE PUPILS NOT USING DISTRICT TRANSPORTATION;
OR  MODELING  OF  FUTURE  RIDERSHIP;  OR  THE  SHARING OF TRANSPORTATION
REGIONALLY; OR OTHER CRITERIA APPROVED  BY  THE  COMMISSIONER;  PROVIDED
HOWEVER  THAT ANY METHODOLOGY SHALL REQUIRE AN ADDITIONAL TEN PERCENT IN
SEATING CAPACITY ABOVE THE NUMBER OF SEATS DERIVED USING SUCH  METHODOL-
OGY WHICH SHALL BE AVAILABLE IN CASE OF UNANTICIPATED RIDERS.
  NOTHING  IN  THIS  SUBDIVISION SHALL BE CONSTRUED TO REDUCE OR RELIEVE
SCHOOL DISTRICTS FROM THE RESPONSIBILITY OF PROVIDING TRANSPORTATION  TO
STUDENTS  OTHERWISE  ELIGIBLE  FOR  SUCH TRANSPORTATION. NOTHING IN THIS
SUBDIVISION SHALL BE CONSTRUED TO AUTHORIZE A SCHOOL  DISTRICT  TO  HAVE
STANDING   PASSENGERS   IN   VIOLATION  OF  SECTION  THIRTY-SIX  HUNDRED
THIRTY-FIVE-C OF THIS ARTICLE, AND UNANTICIPATED RIDERSHIP SHALL NOT  BE
DEEMED  AN UNFORESEEN OCCURRENCE FOR PURPOSES OF SUBDIVISION TWO OF SUCH
SECTION AFTER THE  FIRST  DAY  IN  WHICH  SUCH  UNANTICIPATED  RIDERSHIP
OCCURS.
  ANY  SCHOOL  DISTRICT  THAT, AT ITS DISCRETION, HAS ELECTED TO PROVIDE
STUDENT TRANSPORTATION BASED UPON PATTERNS  OF  ACTUAL  RIDERSHIP  SHALL
PLACE  SUCH PLANS ON THE SCHOOL DISTRICT'S WEBSITE, IF ONE EXISTS, ON OR
BEFORE AUGUST FIFTEENTH OF THE SCHOOL YEAR IN WHICH  THE  TRANSPORTATION
PLAN WILL BE IMPLEMENTED AND SHALL BE REQUIRED TO HAVE A BACK UP PLAN AS
PART OF THEIR EMERGENCY MANAGEMENT PRACTICES FOR PUPIL TRANSPORTATION IN
THE EVENT THAT A BUS IS FILLED BEYOND CAPACITY.
  B.  THE COMMISSIONER SHALL EVALUATE THE EFFECTIVENESS OF THIS SUBDIVI-
SION  INCLUDING  THE METHODOLOGIES USED BY SCHOOL DISTRICTS TO DETERMINE
THE PATTERNS OF ACTUAL RIDERSHIP AND WHETHER SUCH  METHODOLOGIES  ENSURE
THAT  ALL  STUDENTS  OTHERWISE  ELIGIBLE RECEIVE TRANSPORTATION AND THAT
STUDENT SAFETY IS ASSURED.
  S 4. Clause (b) of subparagraph 3 of paragraph e of subdivision  6  of
section  3602 of the education law, as amended by section 1 of part F of
chapter 383 of the laws of 2001, is amended to read as follows:
  (b) Such assumed amortization for a project approved  by  the  commis-
sioner  on or after the later of the first day of December, two thousand
one or thirty days after the date upon which this subdivision shall have
become a law AND PRIOR TO THE FIRST DAY OF JULY, TWO THOUSAND ELEVEN  or
for  any  debt  service related to projects approved by the commissioner
prior to such date where a bond, capital note or bond anticipation  note
is  first  issued on or after [such date] THE FIRST DAY OF DECEMBER, TWO
THOUSAND ONE to fund such projects, shall commence: (i) eighteen  months
after  such  approval or (ii) on the date of receipt by the commissioner
of a certification by the district that a general construction  contract
has  been  awarded for such project by the district, whichever is later,
and SUCH ASSUMED AMORTIZATION FOR A PROJECT APPROVED BY THE COMMISSIONER
ON OR AFTER THE FIRST DAY OF JULY, TWO THOUSAND ELEVEN  SHALL  COMMENCE:
(III) EIGHTEEN MONTHS AFTER SUCH APPROVAL OR (IV) ON THE DATE OF RECEIPT
BY  THE  COMMISSIONER  OF  BOTH  THE  FINAL  CERTIFICATE  OF SUBSTANTIAL
COMPLETION OF THE PROJECT ISSUED BY THE ARCHITECT OR  ENGINEER  AND  THE
FINAL  COST  REPORT FOR SUCH PROJECT, WHICHEVER IS LATER OR (V) UPON THE
DATE OF A FINDING BY THE COMMISSIONER THAT THE CERTIFICATE  OF  SUBSTAN-
TIAL COMPLETION OF THE PROJECT HAS BEEN ISSUED BY THE ARCHITECT OR ENGI-
NEER,  BUT  THE  DISTRICT  IS  UNABLE  TO COMPLETE THE FINAL COST REPORT
BECAUSE OF CIRCUMSTANCES  BEYOND  THE  CONTROL  OF  THE  DISTRICT.  SUCH
ASSUMED  AMORTIZATION  shall  provide  for  equal semiannual payments of
principal and interest based on an interest rate established pursuant to
subparagraph five of this paragraph for such purpose for the school year

S. 5856                            58                            A. 8518

during which such certification is received. The  first  installment  of
obligations  issued  by  the school district in support of such projects
may mature not later than the dates  established  pursuant  to  sections
21.00 and 22.10 of the local finance law.
  S 5.  Subdivision 35 of section 1604 of the education law, as added by
chapter 263 of the laws of 2005, is amended to read as follows:
  35.  a.  In  their  discretion, to adopt a resolution establishing the
office of claims auditor and appoint a claims auditor who shall hold his
or her position subject  to  the  pleasure  of  such  trustees.  IN  ITS
DISCRETION,  THE TRUSTEES MAY ADOPT A RESOLUTION ESTABLISHING THE OFFICE
OF DEPUTY CLAIMS AUDITOR WHO SHALL ACT AS CLAIMS AUDITOR IN THE  ABSENCE
OF  THE CLAIMS AUDITOR. Such claims auditor shall report directly to the
trustees. No person shall be eligible for appointment to the  office  of
claims auditor OR DEPUTY CLAIMS AUDITOR who shall also be:
  (1) a trustee of the school district;
  (2) the clerk or treasurer of the school district;
  (3)  the  superintendent  of schools or other official of the district
responsible for business management;
  (4) the person designated as purchasing agent; or
  (5) clerical or professional personnel directly involved in accounting
and purchasing functions of the school district.
  b. Such claims auditor OR DEPUTY CLAIMS AUDITOR shall not be  required
to be a resident of the district, and the [position] POSITIONS of claims
auditor  AND  DEPUTY  CLAIMS  AUDITOR  shall be classified in the exempt
class of the civil service. The trustees, at any time after  the  estab-
lishment  of  the office of claims auditor OR DEPUTY CLAIMS AUDITOR, may
adopt a resolution abolishing such office, whereupon such  office  shall
be  abolished.  When the office of claims auditor shall have been estab-
lished and a claims auditor shall have been  appointed  and  shall  have
qualified,  the powers and duties of the trustees with respect to claims
auditing, and allowing or rejecting all  accounts,  charges,  claims  or
demands  against  the school district, shall devolve upon and thereafter
be exercised by such claims  auditor  during  the  continuance  of  such
office.  The  trustees  shall  be permitted to delegate the claims audit
function TO ONE OR MORE INDEPENDENT ENTITIES by using (1)  inter-munici-
pal cooperative agreements, (2) shared services to the extent authorized
by  section  nineteen  hundred  fifty  of this title, or (3) independent
contractors, to fulfill this function.
  C. WHEN THE TRUSTEES DELEGATE  THE  CLAIMS  AUDIT  FUNCTION  USING  AN
INTER-MUNICIPAL  COOPERATIVE  AGREEMENT,  SHARED  SERVICE  AUTHORIZED BY
SECTION NINETEEN HUNDRED FIFTY OF THIS TITLE, OR AN INDEPENDENT CONTRAC-
TOR, THE TRUSTEES SHALL BE  RESPONSIBLE  FOR  AUDITING  ALL  CLAIMS  FOR
SERVICES  FROM THE ENTITY PROVIDING THE DELEGATED CLAIMS AUDITOR, EITHER
DIRECTLY OR THROUGH A DELEGATION TO A DIFFERENT INDEPENDENT ENTITY.
  S 6.   Subdivision 20-a of section  1709  of  the  education  law,  as
amended  by  chapter  263  of  the  laws  of 2005, is amended to read as
follows:
  20-a. a. In its discretion to  adopt  a  resolution  establishing  the
office of claims auditor and appoint a claims auditor who shall hold his
or  her  position subject to the pleasure of such board of education. IN
ITS DISCRETION, THE BOARD OF EDUCATION MAY ADOPT A RESOLUTION ESTABLISH-
ING THE OFFICE OF DEPUTY CLAIMS AUDITOR WHO SHALL ACT AS CLAIMS  AUDITOR
IN  THE  ABSENCE OF THE CLAIMS AUDITOR. Such claims auditor shall report
directly to the board of education. No  person  shall  be  eligible  for
appointment to the office of claims auditor OR DEPUTY CLAIMS AUDITOR who
shall also be:

S. 5856                            59                            A. 8518

  (1) a member of the board of education;
  (2) the clerk or treasurer of the board of education;
  (3)  the  superintendent  of schools or other official of the district
responsible for business management;
  (4) the person designated as purchasing agent; or
  (5) clerical or professional personnel directly involved in accounting
and purchasing functions of the school district.
  b. Such claims auditor OR DEPUTY CLAIMS AUDITOR shall not be  required
to  be a resident of the district, and such position shall be classified
in the exempt class of the civil service. Such board  of  education,  at
any  time  after  the  establishment  of the office of claims auditor OR
DEPUTY CLAIMS AUDITOR, may adopt a resolution  abolishing  such  office,
whereupon  such  office  shall  be  abolished. When the office of claims
auditor shall have been established and a claims auditor shall have been
appointed and shall have qualified, the powers and duties of  the  board
of  education with respect to claims auditing, allowing or rejecting all
accounts, charges, claims or demands against the school  district  shall
devolve  upon and thereafter be exercised by such claims auditor, during
the continuance of such office. A board shall be permitted  to  delegate
the  claims  audit function TO ONE OR MORE INDEPENDENT ENTITIES by using
(1) inter-municipal cooperative agreements, (2) shared services  to  the
extent  authorized  by  section nineteen hundred fifty of this title, or
(3) independent contractors, to fulfill this function.
  C. WHEN THE BOARD OF EDUCATION DELEGATES  THE  CLAIMS  AUDIT  FUNCTION
USING  AN  INTER-MUNICIPAL COOPERATIVE AGREEMENT, SHARED SERVICE AUTHOR-
IZED BY SECTION NINETEEN HUNDRED FIFTY OF THIS TITLE, OR AN  INDEPENDENT
CONTRACTOR,  THE  BOARD SHALL BE RESPONSIBLE FOR AUDITING ALL CLAIMS FOR
SERVICES FROM THE ENTITY PROVIDING THE DELEGATED CLAIMS AUDITOR,  EITHER
DIRECTLY OR THROUGH A DELEGATION TO A DIFFERENT INDEPENDENT ENTITY.
  S  7.  Paragraph  e  of subdivision 2 of section 1711 of the education
law, as amended by chapter 263 of the laws of 2005, is amended  to  read
as follows:
  e. To have supervision and direction of associate, assistant and other
superintendents,  directors,  supervisors, principals, teachers, lectur-
ers, medical inspectors, nurses, claims auditors,  DEPUTY  CLAIMS  AUDI-
TORS,  attendance  officers,  janitors and other persons employed in the
management of the schools or the other  educational  activities  of  the
district  authorized by this chapter and under the direction and manage-
ment of the board of education; to transfer teachers from one school  to
another,  or  from  one grade of the course of study to another grade in
such course, and to report immediately such transfers to such board  for
its  consideration  and  actions;  to report to such board violations of
regulations and cases of insubordination, and to suspend  an  associate,
assistant or other superintendent, director, supervisor, expert, princi-
pal,  teacher  or  other employee until the next regular meeting of such
board, when all facts relating to the case shall be  submitted  to  such
board for its consideration and action.
  S 8. Subdivision 1 of section 1724 of the education law, as amended by
chapter 259 of the laws of 1975, is amended to read as follows:
  1.  No  claim against a central school district or a union free school
district, except for compensation for services of an officer or employee
engaged at agreed wages by the hour, day, week, month or year or for the
principal of or interest on indebtedness of the district, shall be  paid
unless an itemized voucher therefor approved by the officer whose action
gave rise or origin to the claim, shall have been presented to the board
of  education  of  the district and shall have been audited and allowed;

S. 5856                            60                            A. 8518

PROVIDED, HOWEVER THAT IN THE CASE OF A SCHOOL DISTRICT  WITH  A  PUBLIC
SCHOOL  ENROLLMENT OF TEN THOUSAND STUDENTS OR MORE, THE BOARD OF EDUCA-
TION MAY, AT ITS DISCRETION, USE A RISK-BASED OR SAMPLING METHODOLOGY TO
DETERMINE  WHICH CLAIMS ARE TO BE AUDITED IN LIEU OF AUDITING ALL CLAIMS
SO LONG AS IT IS DETERMINED BY RESOLUTION OF THE BOARD OF EDUCATION THAT
THE METHODOLOGY FOR CHOOSING THE SAMPLE  PROVIDES  REASONABLE  ASSURANCE
THAT ALL THE CLAIMS REPRESENTED IN THE SAMPLE ARE PROPER CHARGES AGAINST
THE  SCHOOL  DISTRICT.   The board of education shall be authorized, but
not required, to prescribe the form of such voucher.
  S 9. Subdivision 5 of section 2503 of the education law, as amended by
chapter 263 of the laws of 2005, is amended to read as follows:
  5. Shall create, abolish, maintain  and  consolidate  such  positions,
divisions,  boards  or bureaus as, in its judgment, may be necessary for
the proper and efficient administration of its work; shall appoint prop-
erly qualified persons to fill such positions, including  a  superinten-
dent  of  schools,  such associate, assistant and other superintendents,
directors,  supervisors,  principals,   teachers,   lecturers,   special
instructors,  medical inspectors, nurses, claims auditors, DEPUTY CLAIMS
AUDITORS, attendance officers, secretaries, clerks, custodians, janitors
and other employees and other persons or experts in educational,  social
or  recreational  work or in the business management or direction of its
affairs as said  board  shall  determine  necessary  for  the  efficient
management  of  the  schools and other educational, social, recreational
and business activities; and shall  determine  their  duties  except  as
otherwise provided herein.
  S  10.  Subdivision 5 of section 2508 of the education law, as amended
by chapter 263 of the laws of 2005, is amended to read as follows:
  5. To have supervision and direction of associate, assistant and other
superintendents, directors, supervisors, principals,  teachers,  lectur-
ers,  medical  inspectors,  nurses, claims auditors, DEPUTY CLAIMS AUDI-
TORS, attendance officers, janitors and other persons  employed  in  the
management  of  the  schools  or the other educational activities of the
district authorized by this chapter and under the direction and  manage-
ment  of the board of education; to transfer teachers from one school to
another, or from one grade of the course of study to  another  grade  in
such  course, and to report immediately such transfers to such board for
its consideration and action; to report  to  such  board  violations  of
regulations  and  cases of insubordination, and to suspend an associate,
assistant or other superintendent, director, supervisor, expert, princi-
pal, teacher or other employee until the next regular  meeting  of  such
board,  when  all  facts relating to the case shall be submitted to such
board for its consideration and action.
  S 11. Subdivision 2 of section 2523 of the education law,  as  amended
by chapter 263 of the laws of 2005, is amended to read as follows:
  2. Such moneys shall be disbursed only on the signature of such treas-
urer  by  checks payable to the person or persons entitled thereto.  The
board of education may in its discretion require that  such checks-other
than checks  for salary, be countersigned by  another  officer  of  such
district.  When  authorized by resolution of the board of education such
checks may be signed with the facsimile signature of the  treasurer  and
other  district  officer whose signature is required, as reproduced by a
machine or device commonly known as a check-signer. Each check drawn  by
the  treasurer  shall  state the fund against which it is drawn. No fund
shall be overdrawn nor shall any check be drawn upon one fund to  pay  a
claim chargeable to another. No money shall be paid out by the treasurer
except  upon  the  warrant  of the clerk of the board of education after

S. 5856                            61                            A. 8518

audit and allowance by such board, or if  a  claims  auditor  OR  DEPUTY
CLAIMS  AUDITOR  shall  have  been appointed, except upon the warrant of
such claims auditor OR DEPUTY CLAIMS AUDITOR after audit  and  allowance
thereof;  provided, however, when provision for payment has been made in
the annual budget the treasurer may pay, without such warrant  or  prior
audit  and  allowance, (a) the principal of and interest on bonds, notes
or other evidences of indebtedness of the district or for the payment of
which the district shall be liable, and (b) compensation for services of
officers or employees engaged at agreed wages by the  hour,  day,  week,
month  or  year  upon  presentation  of  a  duly  certified payroll; AND
PROVIDED FURTHER THAT IN THE CASE OF  A  CITY  SCHOOL  DISTRICT  WITH  A
PUBLIC  SCHOOL ENROLLMENT OF TEN THOUSAND STUDENTS OR MORE, THE BOARD OF
EDUCATION MAY, AT ITS DISCRETION, USE A RISK-BASED OR SAMPLING METHODOL-
OGY TO DETERMINE WHICH CLAIMS ARE TO BE AUDITED IN LIEU OF AUDITING  ALL
CLAIMS  SO LONG AS IT IS DETERMINED BY RESOLUTION OF THE BOARD OF EDUCA-
TION THAT THE METHODOLOGY FOR CHOOSING THE  SAMPLE  PROVIDES  REASONABLE
ASSURANCE  THAT  ALL  THE  CLAIMS  REPRESENTED  IN THE SAMPLE ARE PROPER
CHARGES AGAINST THE SCHOOL DISTRICT. By  resolution  duly  adopted,  the
board  may determine to enter into a contract to provide for the deposit
of the periodic payroll of the school district in a bank or trust compa-
ny for disbursal by it in accordance with provisions of section  ninety-
six-b of the banking law.
  S  12.  Subdivision 1 of section 2524 of the education law, as amended
by chapter 263 of the laws of 2005, is amended to read as follows:
  1. No claim against a city school district,  except  for  compensation
for  services  of  an officer or employee engaged at agreed wages by the
hour, day, week, month or year or for the principal of  or  interest  on
indebtedness  of  the district, shall be paid unless an itemized voucher
therefor approved by the officer whose action gave rise or origin to the
claim, shall have been presented to  the  board  of  education,  or  THE
claims  auditor OR DEPUTY CLAIMS AUDITOR of the city school district and
shall have been audited and allowed, PROVIDED THAT IN THE CASE OF A CITY
SCHOOL DISTRICT WITH A PUBLIC SCHOOL ENROLLMENT OF TEN THOUSAND STUDENTS
OR MORE, THE BOARD OF EDUCATION MAY, AT ITS DISCRETION, USE A RISK-BASED
OR SAMPLING METHODOLOGY TO DETERMINE WHICH CLAIMS ARE TO BE  AUDITED  IN
LIEU OF AUDITING ALL CLAIMS SO LONG AS IT IS DETERMINED BY RESOLUTION OF
THE  BOARD  OF  EDUCATION  THAT  THE METHODOLOGY FOR CHOOSING THE SAMPLE
PROVIDES REASONABLE ASSURANCE THAT ALL THE  CLAIMS  REPRESENTED  IN  THE
SAMPLE  ARE  PROPER  CHARGES  AGAINST THE SCHOOL DISTRICT.  The board of
education shall be authorized, but not required, to prescribe  the  form
of such voucher.
  S  13. Section 2525 of the education law, as amended by chapter 263 of
the laws of 2005, is amended to read as follows:
  S 2525. Audit of claims. 1. The board of education, in considering any
claim OR WHERE APPLICABLE A SAMPLING OF CLAIMS, may require  any  person
presenting  the  same to be sworn before it or before any member thereof
and to give testimony relative to the  justness  and  accuracy  of  such
claim, and may take evidence and examine witnesses under oath in respect
to  the  claim, and for that purpose may issue subpoenas for the attend-
ance of witnesses. When a claim OR WHERE APPLICABLE A SAMPLING OF CLAIMS
has been finally audited by the board of education  the  clerk  of  such
board  shall  endorse  thereon  or  attach thereto a certificate of such
audit and file the same as a public record in his or  her  office.  When
any  claim  has  been so audited and a certificate thereof so filed, the
clerk of the board of education shall draw a warrant specifying the name
of the claimant, the amount allowed and the fund,  function  and  object

S. 5856                            62                            A. 8518

chargeable  therewith and such other information as may be deemed neces-
sary and essential, directed to the treasurer of the district, authoriz-
ing and directing him or her to pay to the claimant the  amount  allowed
upon  his  or  her  claim.  A copy of such warrant shall be filed in the
office of the clerk.
  2. In a city school district in which the office of claims auditor  OR
DEPUTY  CLAIMS  AUDITOR  has  been created, the claims auditor OR DEPUTY
CLAIMS AUDITOR in considering a claim OR WHERE APPLICABLE A SAMPLING  OF
CLAIMS,  may  require  any person presenting the same to be sworn before
him or her and to give testimony relative to the justness  and  accuracy
of such claim, and may take evidence and examine witnesses under oath in
respect  to  the claim, and for that purpose may issue subpoenas for the
attendance of witnesses. When a claim, OR WHERE APPLICABLE A SAMPLING OF
CLAIMS, has been finally audited by the claims auditor OR DEPUTY  CLAIMS
AUDITOR  he or she shall endorse thereon or attach thereto a certificate
of such audit and file the same as a public record in his or her office.
When any claim has been so audited and a certificate thereof  so  filed,
the  claims auditor OR DEPUTY CLAIMS AUDITOR shall draw a warrant speci-
fying the number of the claim, the name  of  the  claimant,  the  amount
allowed  and the fund, function and object chargeable therewith and such
other information as may be deemed necessary or essential,  directed  to
the  treasurer  of the district, authorizing and directing him or her to
pay to the claimant the amount allowed upon his or  her  claim.  IN  THE
CASE  OF  A  CITY SCHOOL DISTRICT WITH A PUBLIC SCHOOL ENROLLMENT OF TEN
THOUSAND  STUDENTS  OR  MORE,  THE  BOARD  OF  EDUCATION  MAY,  AT   ITS
DISCRETION,  USE A RISK-BASED OR SAMPLING METHODOLOGY TO DETERMINE WHICH
CLAIMS ARE TO BE AUDITED IN LIEU OF AUDITING ALL CLAIMS SO LONG AS IT IS
DETERMINED BY RESOLUTION OF THE BOARD OF EDUCATION THAT THE  METHODOLOGY
FOR  CHOOSING  THE  SAMPLE  PROVIDES  REASONABLE  ASSURANCE THAT ALL THE
CLAIMS REPRESENTED IN THE SAMPLE ARE PROPER CHARGES AGAINST  THE  SCHOOL
DISTRICT.  A  copy  of  such warrant shall be filed in the office of the
clerk.
  S 14. Section 2526 of the education law, as amended by chapter 263  of
the laws of 2005, is amended to read as follows:
  S 2526. Claims  auditor.  1.  The  board of education of a city school
district may adopt a resolution establishing the office of claims  audi-
tor  and  appoint  a  claims  auditor who shall hold his or her position
subject to the pleasure of such board of education.  IN ITS  DISCRETION,
THE  BOARD  MAY  ADOPT  A  RESOLUTION  ESTABLISHING THE OFFICE OF DEPUTY
CLAIMS AUDITOR WHO SHALL ACT AS CLAIMS AUDITOR IN  THE  ABSENCE  OF  THE
CLAIMS  AUDITOR.  Such claims auditor shall report directly to the board
of education. No person shall be eligible for appointment to the  office
of claims auditor OR DEPUTY CLAIMS AUDITOR who shall be:
  (1) a member of the board of education;
  (2) the clerk or treasurer of the board of education;
  (3)  the  superintendent  of schools or other official of the district
responsible for business management;
  (4) the person designated as purchasing agent; or
  (5) clerical or professional personnel directly involved in accounting
and purchasing functions of the school district.
  1-a. The [position] POSITIONS of  claims  auditor  AND  DEPUTY  CLAIMS
AUDITOR  shall  be classified in the exempt class of civil service. Such
board of education, at any time after the establishment of the office of
claims auditor OR DEPUTY CLAIMS AUDITOR, may adopt a resolution abolish-
ing such office, whereupon such office shall be abolished.

S. 5856                            63                            A. 8518

  2. When the office of claims auditor shall have been established and a
claims auditor shall have been appointed and shall have  qualified,  the
powers  and  duties  of  the  board  of education with respect to claims
auditing, allowing or rejecting all accounts, charges, claims or demands
against  the  city  school district shall devolve upon and thereafter be
exercised by such claims auditor, during the continuance of such office.
The board of education shall be permitted to delegate the  claims  audit
function  TO ONE OR MORE INDEPENDENT ENTITIES by using (1) inter-munici-
pal cooperative agreements, (2) shared services to the extent authorized
by section nineteen hundred fifty of  this  title,  or  (3)  independent
contractors, to fulfill this function.
  3.  WHEN  THE  BOARD  OF EDUCATION DELEGATES THE CLAIMS AUDIT FUNCTION
USING AN INTER-MUNICIPAL COOPERATIVE AGREEMENT, SHARED  SERVICE  AUTHOR-
IZED  BY SECTION NINETEEN HUNDRED FIFTY OF THIS TITLE, OR AN INDEPENDENT
CONTRACTOR, THE BOARD SHALL BE RESPONSIBLE FOR AUDITING ALL  CLAIMS  FOR
SERVICES  FROM THE ENTITY PROVIDING THE DELEGATED CLAIMS AUDITOR, EITHER
DIRECTLY OR THROUGH A DELEGATION TO A DIFFERENT INDEPENDENT ENTITY.
  S 15. Section 2527 of the education law, as amended by chapter 263  of
the laws of 2005, is amended to read as follows:
  S 2527. Official undertakings. The clerk of the board of education or,
where  the  office  of  claims auditor OR DEPUTY CLAIMS AUDITOR has been
created, the claims auditor OR DEPUTY CLAIMS AUDITOR, and the treasurer,
collector and such other officers and employees as the board  of  educa-
tion  shall designate, shall, before they enter upon the duties of their
respective offices or positions, each execute to the school district and
file with the school district clerk an official undertaking in such  sum
and  with  such  corporate surety as the board of education shall direct
and approve. The board of education may, at any time, require  any  such
officer  or employee to file a new official undertaking for such sum and
with such corporate surety as the board shall approve. Such undertakings
as shall have been approved by the board of education shall forthwith be
filed with the school district clerk. The  expense  of  any  undertaking
executed pursuant to this section shall be a school district charge.
  S 16. Subdivision 2-a of section 2554 of the education law, as amended
by chapter 263 of the laws of 2005, is amended to read as follows:
  2-a.  a.  In  its  discretion  to  adopt a resolution establishing the
office of claims auditor and appoint a claims auditor who shall hold his
or her position subject to the pleasure of the board. IN ITS DISCRETION,
THE BOARD MAY ADOPT A RESOLUTION ESTABLISHING ONE  OR  MORE  OFFICES  OF
DEPUTY  CLAIMS AUDITOR WHO SHALL ACT AS CLAIMS AUDITOR IN THE ABSENCE OF
THE CLAIMS AUDITOR. Such claims auditor shall  report  directly  to  the
board  of  education. No person shall be eligible for appointment to the
office of claims auditor OR DEPUTY CLAIMS AUDITOR who shall be
  (1) a member of the board of education;
  (2) a clerk or treasurer of the board of education;
  (3) the superintendent of schools or other official  of  the  district
responsible for business management;
  (4) the person designated as purchasing agent; or
  (5) clerical or professional personnel directly involved in accounting
and purchasing functions of the school district.
  b. The [position] POSITIONS of claims auditor OR DEPUTY CLAIMS AUDITOR
shall  be  classified in the exempt class of civil service. The board of
education, at any time after the establishment of the office  of  claims
auditor  OR DEPUTY CLAIMS AUDITOR, may adopt a resolution abolishing the
office. When the office of claims auditor shall  have  been  established
and a claims auditor shall have been appointed and shall have qualified,

S. 5856                            64                            A. 8518

the powers and duties of the board of education with respect to auditing
accounts,  charges,  claims  or demands against the city school district
shall devolve upon and thereafter be exercised by such  claims  auditor,
during  the  continuance  of the office. The board of education shall be
permitted to delegate the claims audit function TO ONE OR MORE INDEPEND-
ENT ENTITIES by using (1) inter-municipal cooperative agreements, or (2)
independent contractors, to fulfill this function.
  C. WHEN THE BOARD OF EDUCATION DELEGATES  THE  CLAIMS  AUDIT  FUNCTION
USING  AN  INTER-MUNICIPAL COOPERATIVE AGREEMENT, SHARED SERVICE AUTHOR-
IZED BY SECTION NINETEEN HUNDRED FIFTY OF THIS TITLE, OR AN  INDEPENDENT
CONTRACTOR,  THE  BOARD SHALL BE RESPONSIBLE FOR AUDITING ALL CLAIMS FOR
SERVICES FROM THE ENTITY PROVIDING THE DELEGATED CLAIMS AUDITOR,  EITHER
DIRECTLY OR THROUGH A DELEGATION TO A DIFFERENT INDEPENDENT ENTITY.
  S  17.  Subdivision 2 of section 2562 of the education law, as amended
by chapter 263 of the laws of 2005, is amended to read as follows:
  2. The said board of education may require any person  presenting  for
settlement  an  account or claim for any cause whatever against it to be
sworn before it or a committee thereof, or before the claims auditor  OR
DEPUTY  CLAIMS  AUDITOR,  or before any person designated by said board,
touching such account or claim, and when so sworn, to answer  orally  as
to any facts relative to the justness of such account or claim. A member
of  the  board,  the  claims  auditor, or any other person designated as
hereinbefore stated, shall have the power to administer an oath  to  any
person  who  shall  give  testimony  to  the justness of such account or
claim, and for the purpose of securing such testimony may issue  subpoe-
nas  for  the  attendance of witnesses. Wilful false swearing before the
said board of education, a committee  thereof,  the  claims  auditor  OR
DEPUTY  CLAIMS  AUDITOR, or before any person designated as hereinbefore
stated, is perjury and punishable as such.
  S 18. Subdivision 6 of section 2566 of the education law,  as  amended
by chapter 263 of the laws of 2005, is amended to read as follows:
  6. To have supervision and direction of associate, assistant, district
and other superintendents, directors, supervisors, principals, teachers,
lecturers,  medical  inspectors,  nurses, claims auditors, DEPUTY CLAIMS
AUDITORS, attendance officers, janitors and other  persons  employed  in
the management of the schools or the other educational activities of the
city  authorized  by this chapter and under the direction and management
of the board of education, except that in the city school  districts  of
the  cities of Buffalo and Rochester to also appoint, within the amounts
budgeted therefor, such associate, assistant  and  district  superinten-
dents and all other supervising staff who are excluded from the right to
bargain  collectively  pursuant to article fourteen of the civil service
law; to transfer teachers from one school to another, or from one  grade
of  the  course  of study to another grade in such course, and to report
immediately such transfers to  said  board  for  its  consideration  and
action;  to  report to said board of education violations of regulations
and cases of insubordination, and to suspend  an  associate,  assistant,
district  or other superintendent, director, supervisor, expert, princi-
pal, teacher or other employee until the next  regular  meeting  of  the
board,  when  all  facts  relating to the case shall be submitted to the
board for its consideration and action.
  S 19. Paragraph a of subdivision 1 of section 2576  of  the  education
law,  as  amended by chapter 263 of the laws of 2005, is amended to read
as follows:
  a. The salary of the superintendent of schools, associate, district or
assistant or other superintendents, examiners,  directors,  supervisors,

S. 5856                            65                            A. 8518

principals,  teachers,  lecturers, special instructors, claims auditors,
DEPUTY CLAIMS AUDITORS, medical inspectors, nurses, attendance officers,
clerks, custodians and janitors and the salary, fees or compensation  of
all other employees appointed or employed by said board of education. In
addition,  the  expenses  of  personnel utilized to fulfill the internal
audit function pursuant to section twenty-one hundred sixteen-b of  this
[chapter] TITLE.
  S  20.  Subdivisions  2  and  4  of section 2580 of the education law,
subdivision 2 as amended by chapter 263 of the laws of 2005 and subdivi-
sion 4 as amended by chapter 452 of the laws of  1964,  are  amended  to
read as follows:
  2.  Such  funds shall be disbursed by authority of the board of educa-
tion upon written orders drawn on the city  treasurer  or  other  fiscal
officer  of  the city. Such orders shall be signed by the superintendent
of schools and the secretary of the board of  education  or  such  other
officers  as  the  board  may  authorize.  If a claims auditor OR DEPUTY
CLAIMS AUDITOR shall have been appointed,  orders  shall  be  signed  by
[the]  SUCH  claims  auditor;  provided,  however,  that  the  board may
require, in addition, the signature of such other officer or officers as
it may by resolution direct. Orders shall be numbered consecutively  and
shall  specify  the  purpose  for which they are drawn and the person or
corporation to whom they are payable.
  4. It shall be unlawful for a city treasurer or other  officer  having
the custody of such city funds to permit their use for any purpose other
than that for which they are lawfully authorized; they shall be paid out
only on audit of the board of education or as otherwise provided herein;
PROVIDED,  HOWEVER,  THAT THE BOARD OF EDUCATION MAY, AT ITS DISCRETION,
USE A RISK-BASED OR SAMPLING METHODOLOGY TO DETERMINE WHICH  CLAIMS  ARE
TO BE AUDITED IN LIEU OF AUDITING ALL CLAIMS SO LONG AS IT IS DETERMINED
BY  RESOLUTION OF THE BOARD OF EDUCATION THAT THE METHODOLOGY FOR CHOOS-
ING THE SAMPLE PROVIDES REASONABLE ASSURANCE THAT ALL THE CLAIMS REPRES-
ENTED IN THE SAMPLE ARE PROPER  CHARGES  AGAINST  THE  SCHOOL  DISTRICT.
Payments  from  such  funds  shall  be made only by checks signed by the
treasurer or other custodian of such moneys and payable to the person or
persons entitled thereto and countersigned either by the comptroller, or
in a city having no comptroller, by an officer designated by the officer
or body having the general control of  the  financial  affairs  of  such
city.  The  board  of  education of such city shall make, in addition to
such classification of its funds and accounts as it desires for its  own
use  and information, such further classification of the funds under its
management and control and of the disbursements  thereof  as  the  comp-
troller  of  the city, or the officer or body having the general control
of the financial affairs of such city, shall  require,  and  such  board
shall  furnish  such  data in relation to such funds and their disburse-
ments as the comptroller or such other financial officer or body of  the
city shall require.
  S  21.  The education law is amended by adding a new section 1527-c to
read as follows:
  S 1527-C. SHARED SUPERINTENDENT  PROGRAM.  NOTWITHSTANDING  ANY  OTHER
PROVISION  OF  LAW,  RULE  OR  REGULATION TO THE CONTRARY, THE GOVERNING
BOARD OF A SCHOOL DISTRICT WITH AN ENROLLMENT OF LESS THAN ONE  THOUSAND
STUDENTS IN THE PREVIOUS YEAR SHALL BE AUTHORIZED TO ENTER INTO A SCHOOL
SUPERINTENDENT  SHARING CONTRACT WITH NO MORE THAN TWO ADDITIONAL SCHOOL
DISTRICTS EACH OF WHICH HAD FEWER THAN ONE THOUSAND IN  ENROLLED  PUPILS
IN  THE  PREVIOUS  YEAR. EACH SHARED SUPERINTENDENT ARRANGEMENT SHALL BE
GOVERNED BY THE BOARDS OF EDUCATION OF THE SCHOOL DISTRICTS  PARTICIPAT-

S. 5856                            66                            A. 8518

ING  IN  THE  SHARED CONTRACT. PROVIDED HOWEVER, THAT THIS SECTION SHALL
NOT BE CONSTRUED TO ALTER, AFFECT  OR  IMPAIR  ANY  EMPLOYMENT  CONTRACT
WHICH  IS  IN EFFECT ON OR BEFORE JULY FIRST, TWO THOUSAND THIRTEEN. ANY
SCHOOL  DISTRICT  WHICH HAS ENTERED INTO A SCHOOL SUPERINTENDENT SHARING
PROGRAM WILL CONTINUE TO BE ELIGIBLE TO COMPLETE SUCH CONTRACT  NOTWITH-
STANDING  THAT  THE ENROLLMENT OF THE SCHOOL DISTRICT EXCEEDED ONE THOU-
SAND STUDENTS AFTER ENTERING INTO A SHARED SUPERINTENDENT CONTRACT.
  S 22.  Section 1604 of the education law is amended by  adding  a  new
subdivision 21-b to read as follows:
  21-B.  A.  THE TRUSTEES ARE AUTHORIZED TO PROVIDE REGIONAL TRANSPORTA-
TION SERVICES BY RENDERING  SUCH  SERVICES  JOINTLY  WITH  OTHER  SCHOOL
DISTRICTS  OR  BOARDS OF COOPERATIVE EDUCATIONAL SERVICES. SUCH SERVICES
MAY INCLUDE PUPIL TRANSPORTATION BETWEEN HOME AND SCHOOL, TRANSPORTATION
DURING THE DAY TO AND FROM SCHOOL AND A  SPECIAL  EDUCATION  PROGRAM  OR
SERVICE  OR  A PROGRAM AT A BOARD OF COOPERATIVE EDUCATIONAL SERVICES OR
AN APPROVED SHARED PROGRAM AT ANOTHER  SCHOOL  DISTRICT,  TRANSPORTATION
FOR  FIELD  TRIPS OR TO AND FROM EXTRACURRICULAR ACTIVITIES, AND COOPER-
ATIVE SCHOOL BUS MAINTENANCE.
  B. THE TRUSTEES ARE AUTHORIZED TO ENTER INTO A CONTRACT  WITH  ANOTHER
SCHOOL DISTRICT, A COUNTY, MUNICIPALITY, OR THE STATE OFFICE OF CHILDREN
AND  FAMILY  SERVICES  TO PROVIDE TRANSPORTATION FOR CHILDREN, INCLUDING
CONTRACTS TO PROVIDE  SUCH  TRANSPORTATION  AS  REGIONAL  TRANSPORTATION
SERVICES, PROVIDED THAT THE CONTRACT COST IS APPROPRIATE. IN DETERMINING
THE APPROPRIATE TRANSPORTATION CONTRACT COST, THE TRANSPORTATION SERVICE
PROVIDER  SCHOOL  DISTRICT SHALL USE A CALCULATION CONSISTENT WITH REGU-
LATIONS ADOPTED BY THE COMMISSIONER FOR THE  PURPOSE  OF  ASSURING  THAT
CHARGES  REFLECT  THE  TRUE  COSTS  THAT  WOULD BE INCURRED BY A PRUDENT
PERSON IN THE CONDUCT OF A COMPETITIVE TRANSPORTATION BUSINESS.
  S 23.  Paragraphs g and h of subdivision 25 of  section  1709  of  the
education  law,  paragraph g as added by chapter 367 of the laws of 1979
and paragraph h as added by chapter 700 of the laws of 1993, are amended
to read as follows:
  g. The board of education is authorized to provide regional  transpor-
tation  services  by  rendering  such services jointly with other school
districts or boards of cooperative educational services.  Such  services
may include pupil transportation between home and school, TRANSPORTATION
DURING  THE  DAY  TO  AND FROM SCHOOL AND A SPECIAL EDUCATION PROGRAM OR
SERVICE OR A PROGRAM AT A BOARD OF COOPERATIVE EDUCATIONAL  SERVICES  OR
AN  APPROVED  SHARED  PROGRAM AT ANOTHER SCHOOL DISTRICT, TRANSPORTATION
FOR FIELD TRIPS OR TO AND FROM EXTRACURRICULAR ACTIVITIES,  and  cooper-
ative school bus maintenance.
  h.  The board of education is authorized to enter into a contract with
another  school district, a county, municipality, or the state [division
for youth] OFFICE OF CHILDREN AND FAMILY SERVICES to provide transporta-
tion for children, INCLUDING CONTRACTS TO PROVIDE SUCH TRANSPORTATION AS
REGIONAL TRANSPORTATION SERVICES, provided that  the  contract  cost  is
appropriate.  In  determining  the  appropriate  transportation contract
cost, the transportation service provider school district  shall  use  a
calculation  consistent with regulations adopted by the commissioner for
the purpose of assuring that charges reflect the true costs  that  would
be  incurred  by a prudent person in the conduct of a competitive trans-
portation business.
  S 24.   Paragraph b of subdivision 2 of  section  33  of  the  general
municipal  law,  as added by chapter 267 of the laws of 2005, is amended
to read as follows:

S. 5856                            67                            A. 8518

  b. In undertaking such audits the comptroller's review shall  include,
but not be limited to:
  (1) examining, auditing and evaluating financial documents and records
of school districts, BOCES and charter schools,
  (2)  assessing  the  current  financial practices of school districts,
BOCES and charter schools to ensure that they are consistent with estab-
lished standards, INCLUDING WHETHER ANY  SCHOOL  DISTRICT  THAT  USES  A
RISK-BASED  OR  SAMPLING METHODOLOGY TO DETERMINE WHICH CLAIMS ARE TO BE
AUDITED IN LIEU OF AUDITING ALL CLAIMS HAS ADOPTED  A  METHODOLOGY  THAT
PROVIDES  REASONABLE  ASSURANCE  THAT  ALL THE CLAIMS REPRESENTED IN THE
SAMPLE ARE PROPER CHARGES AGAINST THE SCHOOL DISTRICT; and
  (3) determining that school  districts,  BOCES,  and  charter  schools
provide  for  adequate  protections against any fraud, theft, or profes-
sional misconduct.
  S 25.   The comptroller shall review  the  effectiveness  of  allowing
school  districts  to use a risk-based or sampling methodology to deter-
mine which claims are to be audited  in  lieu  of  auditing  all  claims
including  whether  this  practice  maintains  adequate  school district
fiscal  accountability  and  any  recommendations  for  improvements  or
modifications that should be made and whether school districts should be
authorized to continue such practice. Such report shall be issued to the
governor and the legislature by January 15, 2014.
  S  26.  This act shall take effect immediately provided, however, that
the provisions of section three of this act shall expire June  30,  2014
when  upon  such  date  the  provisions  of such section shall be deemed
repealed; provided, further that the provisions of sections eight, elev-
en, twelve, thirteen and twenty of this act shall expire  July  1,  2014
when  upon  such  date  the  provisions of such sections shall be deemed
repealed.

                                SUBPART G

  Section 1.  Paragraph 1 of subdivision (c) of  section  81.44  of  the
mental  hygiene  law,  as  added  by chapter 175 of the laws of 2008, is
amended to read as follows:
  1. serve a copy of the statement of death upon the court examiner, the
duly appointed personal representative of the decedent's estate, or,  if
no  [person]  PERSONAL  representative has been appointed, then upon the
personal representative named  in  the  decedent's  will  or  any  trust
instrument,  if  known, UPON THE LOCAL DEPARTMENT OF SOCIAL SERVICES and
upon the public administrator of the chief fiscal officer of the  county
in which the guardian was appointed, and
  S  2.  Subdivision  4  of  section 458-b of the social services law is
amended by adding a new paragraph (d) to read as follows:
  (D) PAYMENTS PURSUANT TO THIS SECTION MAY BE MADE BY DIRECT DEPOSIT OR
DEBIT CARD, AS ELECTED BY  THE  RECIPIENT,  AND  ADMINISTERED  ELECTRON-
ICALLY,  AND IN ACCORDANCE WITH SECTION TWENTY-ONE-A OF THIS CHAPTER AND
WITH SUCH GUIDELINES AS MAY BE SET FORTH BY REGULATION OF THE OFFICE  OF
CHILDREN AND FAMILY SERVICES. THE OFFICE OF CHILDREN AND FAMILY SERVICES
MAY  ENTER  INTO  CONTRACTS ON BEHALF OF LOCAL SOCIAL SERVICES DISTRICTS
FOR SUCH DIRECT DEPOSIT  OR  DEBIT  CARD  SERVICES  IN  ACCORDANCE  WITH
SECTION TWENTY-ONE-A OF THIS CHAPTER.
  S  3.  This  act shall take effect immediately; provided, however that
section one of this act shall take effect on the ninetieth day after  it
shall  have  become law; provided, further, that section two of this act

S. 5856                            68                            A. 8518

shall take effect on the same date and in the same manner as  section  4
of part F of chapter 58 of the laws of 2010, takes effect.

                                SUBPART H

  Section  1.   Section 204-a of the state administrative procedure act,
as added by chapter 479 of the laws of  2001,  is  amended  to  read  as
follows:
  S 204-a. Alternate methods for implementing regulatory mandates. 1. As
used in this section:
  (a)  "local  government" means any county, city, town, village, school
district, fire district or other special district;
  (b) "regulatory mandate" means any rule which  requires  one  or  more
local governments to create a new program, increase the level of service
for an existing program or otherwise comply with mandatory requirements;
and
  (c)  "petition" means a document submitted by a local government seek-
ing approval of  an  alternate  method  for  implementing  a  regulatory
mandate.
  2.  A LOCAL GOVERNMENT, OR TWO OR MORE LOCAL GOVERNMENTS ACTING JOINT-
LY, MAY SEEK APPROVAL FOR AN ALTERNATE METHOD OF IMPLEMENTING A  REGULA-
TORY  MANDATE  BY  SUBMITTING TO THE APPROPRIATE STATE AGENCY A petition
WHICH shall include BUT NOT BE LIMITED TO:
  (a) FOR EACH INVOLVED LOCAL GOVERNMENT, an indication that  submission
has been approved by the governing body of the local government or by an
officer duly authorized by the governing body to do so;
  (b)  an  identification of the regulatory mandate which is the subject
of the  petition  and  information  sufficient  to  establish  that  the
proposed  alternate method of implementation is consistent with and will
effectively carry out the objectives of the regulatory mandate;
  (c) information [on the process used by the local government to ensure
that all stakeholders have been appropriately involved in the process of
developing the alternate method, including where relevant  the  date  of
any hearing, forum or other meeting to seek input on the alternate meth-
od] SUFFICIENT TO ESTABLISH THAT THE PROPOSED ALTERNATE METHOD OF IMPLE-
MENTATION  IS  CONSISTENT WITH AND WILL EFFECTIVELY CARRY OUT THE OBJEC-
TIVES OF THE REGULATORY MANDATE;
  (d) documentation that the petition has been submitted to the  author-
ized  agents  of  any  certified  or  recognized  employee organizations
representing employees who would be effected by  implementation  of  the
alternate method;
  (e)  [a proposed plan and timetable for compiling and reporting infor-
mation to facilitate evaluation of the effectiveness  of  the  alternate
method;]
  (f) if] WHETHER the state [provides] HAS PROVIDED financial assistance
for  complying  with  the  regulatory  mandate[,  any proposed amount or
percentage of such assistance which would be returned to the  state  due
to savings from implementing the alternate method]; and
  [(g)]  (F) the name, public office address and telephone number of the
representative of the local government who will coordinate requests  for
additional information on the petition; AND
  [3.  Two]  (G) WHERE TWO or more local governments [may submit a peti-
tion] HAVE PETITIONED jointly,  [provided  that  each  local  government
meets  the  requirements of paragraphs (a), (c), (d) and (g) of subdivi-
sion two of this section, and provided that  the  petition]  INFORMATION

S. 5856                            69                            A. 8518

WHICH  addresses  the  manner in which responsibility for implementation
will be allocated between or among the participating local governments.
  [4]  3.    The  agency  shall  cause  a  notice  of the petition to be
published in the state register AND A NEWSPAPER OF  GENERAL  CIRCULATION
IN THE IMPACTED COMMUNITY and shall receive comments on the petition for
a  period of thirty days. Such notice shall either include the full text
of the information set forth in the petition  or  shall  set  forth  the
address  of a website on which the full text has been posted. The notice
shall include the name, public office address and telephone number,  and
may  include  a  fax  number  and  electronic mail address, of an agency
representative from whom additional information on the petition  can  be
obtained and to whom comments on the petition may be submitted.
  [5.  (a)]  4.  Not  later  than  thirty days after the last day of the
comment period, the agency shall approve or disapprove the petition. The
agency may approve the petition without change or with  such  conditions
or  modifications  as the agency deems appropriate. Notice of the agency
determination shall be provided in writing to the local  government  and
shall  be  published in the state register. The agency shall not grant a
petition unless it determines that the petition has met the requirements
of subdivision two of this section and that  the  local  government  has
established that the alternate method is consistent with and will effec-
tively  carry  out  the  objectives of the regulatory mandate; provided,
however, that no petition shall be approved which would  result  in  the
contravention  of  any environmental, health or safety standard or would
reduce any benefits or rights accorded by law or rule to third  parties.
In  approving a petition, an agency may waive a statutory provision only
if it is specifically authorized by law  to  waive  such  provision.  An
approval  shall  include a timetable for agency evaluation of the effec-
tiveness of the alternate method.
  (b) Notwithstanding the provisions of paragraph (a) of  this  subdivi-
sion,  upon  receipt  of  an objection to a petition from the authorized
agent of any certified or recognized employee organization  representing
employees who would be affected by implementation of the alternate meth-
od,  the agency shall provide any such organizations with an opportunity
for a hearing. If an adjudicatory proceeding is requested, the  petition
shall not be approved unless the agency determines by a preponderance of
the  evidence  that  implementing  the alternate method would not affect
such employees by contravening any environmental, health or safety stan-
dard, reducing any rights or benefits or  violating  the  terms  of  any
negotiated  agreement,  and  that all other requirements of this section
have been met. The provisions of this subdivision are in addition to and
shall not be construed to impair or modify any rights of such  employees
under any other law, regulation or contract.
  5.  A LOCAL GOVERNMENT THAT OBJECTS TO A STATE AGENCY DETERMINATION TO
MODIFY OR DISAPPROVE ITS PETITION MAY APPEAL IN WRITING TO  THE  MANDATE
RELIEF  COUNCIL,  WHO, UPON REVIEW OF THE AGENCY'S FINDINGS AND DETERMI-
NATION, MAY APPROVE, MODIFY OR DISAPPROVE THE PETITION.
  6. Nothing in  this  section  shall  require  a  local  government  to
commence  or continue an alternate method of implementation if it deter-
mines in its sole discretion not to do so, except to the extent  that  a
local  government has committed to commencing or continuing an alternate
method in a joint petition submitted pursuant to subdivision [three] TWO
of this section.
  7. A state agency may rescind its approval of a petition [at any  time
if  it  determines,  based on the information reported pursuant to para-
graph (e) of subdivision two of this section or other information avail-

S. 5856                            70                            A. 8518

able to it, that the alternate method is not  effectively  carrying  out
the  objectives  of  the regulatory mandate or is being implemented in a
manner detrimental  to  the  public  interest]  ONLY  AFTER  A  HEARING,
PROVIDED,  HOWEVER,  THAT THE AGENCY MAY SUSPEND ITS APPROVAL OF A PETI-
TION PRIOR TO A HEARING IF IT FINDS THAT IMMEDIATE SUSPENSION IS  NECES-
SARY  TO  ADDRESS  AN  IMMINENT  THREAT TO HEALTH OR SAFETY. NOTICE OF A
HEARING MUST BE PROVIDED TO THE PETITIONER AT LEAST THIRTY DAYS PRIOR TO
THE HEARING AND MUST BE POSTED ON THE AGENCY'S WEBSITE. SUCH NOTICE MUST
STATE THE BASIS FOR THE AGENCY'S DECISION TO SEEK RESCISSION AND  INFORM
THE  LOCAL GOVERNMENT THAT IT MAY REQUEST INFORMATION RELIED UPON BY THE
AGENCY IN MAKING ITS DETERMINATION, WHICH INFORMATION MUST  BE  PROVIDED
TO  THE  LOCAL GOVERNMENT AT LEAST SEVEN DAYS IN ADVANCE OF THE HEARING.
AFTER SUCH HEARING, THE AGENCY MAY RESCIND ITS APPROVAL UPON  A  FINDING
THAT  THE ALTERNATIVE METHOD OF IMPLEMENTATION IS NOT CONSISTENT WITH OR
DOES NOT EFFECTIVELY CARRY OUT THE OBJECTIVES OF THE REGULATORY MANDATE.
  [7.] 8. Notwithstanding any other provision of law, implementation  of
an alternate method approved by an agency pursuant to this section shall
be  deemed  to lawfully meet all requirements of the regulatory mandate.
An agency shall retain the authority  to  enforce  compliance  with  the
alternate  method  in  the same manner as it may enforce compliance with
the underlying rule. Any action on a petition by a state agency shall be
subject to review pursuant to article seventy-eight of the  civil  prac-
tice law and rules.
  [8.]  9.  In  accordance  with  the  timetable established pursuant to
subdivision [four] THREE of this section, the agency shall evaluate  the
effectiveness  of the alternate method in carrying out the objectives of
the regulatory mandate. The evaluation shall  identify  any  savings  or
other  benefits,  and  any costs or other disadvantages, of implementing
the alternate method, and shall address the desirability of  incorporat-
ing  the alternate method into the rules of the agency. Notice of avail-
ability of the evaluation shall be published in the state register.
  S 2. The executive law is amended by adding a new section 666 to  read
as follows:
  S  666. MANDATE RELIEF COUNCIL. 1. DEFINITIONS. A. "MANDATE" MEANS ANY
REQUIREMENT THAT A LOCAL GOVERNMENT PERFORM OR ADMINISTER  ANY  PROGRAM,
PROJECT  OR ACTIVITY, REQUIRED OR IMPOSED BY A STATE LAW OR STATE AGENCY
THAT REQUIRES A HIGHER LEVEL OF SERVICE FOR AN EXISTING LOCAL GOVERNMENT
PROGRAM, PROJECT OR ACTIVITY.
  B. "LOCAL GOVERNMENT" MEANS A  COUNTY,  CITY,  TOWN,  VILLAGE,  SCHOOL
DISTRICT, OR SPECIAL DISTRICT.
  C.  "STATE  AGENCY"  OR  "AGENCY"  MEANS ANY STATE AGENCY, DEPARTMENT,
OFFICE, BOARD, BUREAU, DIVISION, COMMITTEE, COUNCIL OR OFFICE UNDER  THE
DIRECTION OR CONTROL OF THE EXECUTIVE.
  2.  MANDATE  RELIEF COUNCIL. THERE IS HEREBY CREATED WITHIN THE EXECU-
TIVE DEPARTMENT THE MANDATE RELIEF COUNCIL, WHICH SHALL BE COMPRISED  OF
ELEVEN  MEMBERS  AS  FOLLOWS:  THE  SECRETARY TO THE GOVERNOR, WHO SHALL
CHAIR THE COUNCIL, THE COUNSEL TO THE  GOVERNOR,  THE  DIRECTOR  OF  THE
DIVISION  OF  THE  BUDGET,  THE SECRETARY OF STATE, AND THREE ADDITIONAL
MEMBERS TO BE APPOINTED BY THE GOVERNOR FROM AMONG HIS OR HER  EXECUTIVE
CHAMBER STAFF, TWO MEMBERS TO BE APPOINTED BY THE TEMPORARY PRESIDENT OF
THE SENATE, AND TWO MEMBERS TO BE APPOINTED BY THE SPEAKER OF THE ASSEM-
BLY.
  A.  SIX  MEMBERS OF THE COUNCIL, OR THEIR DESIGNEES IN THE CASE OF THE
DIRECTOR OF THE DIVISION OF THE BUDGET AND THE SECRETARY OF STATE, SHALL
CONSTITUTE A QUORUM.

S. 5856                            71                            A. 8518

  B. THE COUNCIL SHALL MEET REGULARLY UPON THE CALL OF ITS CHAIR AND  AS
FREQUENTLY AS ITS BUSINESS MAY REQUIRE. THE MEMBERS OF THE COUNCIL SHALL
SERVE  WITHOUT  COMPENSATION  BUT  SHALL RECEIVE REIMBURSEMENT FOR THEIR
REASONABLE AND NECESSARY EXPENSES.
  C. THE COUNCIL SHALL, UPON REQUEST OF A LOCAL GOVERNMENT OR ONE OF THE
MEMBERS  OF THE COUNCIL, IDENTIFY AND REVIEW MANDATES THAT CAN BE ELIMI-
NATED OR REFORMED, AND MAKE SUCH OTHER AND  FURTHER  INQUIRIES,  REPORTS
AND  RECOMMENDATIONS  AS  THE  COUNCIL MAY DEEM NECESSARY AND PRUDENT TO
EFFECTUATE ITS MISSION OF MANDATE RELIEF. IN IDENTIFYING AND DETERMINING
WHETHER SUCH MANDATES ARE UNSOUND,  UNDULY  BURDENSOME  OR  COSTLY,  THE
COUNCIL  SHALL  RECEIVE AND CONSIDER PUBLIC COMMENT ABOUT THEM AND SHALL
REVIEW THEM IN LIGHT OF  COST-BENEFIT  PRINCIPLES  AND  SUCH  OTHER  AND
FURTHER  FACTORS  AS  THE  COUNCIL SHALL DEEM NECESSARY AND PRUDENT. THE
COUNCIL SHALL NOT MAKE A REFERRAL TO THE  GOVERNOR  THAT  A  MANDATE  BE
ELIMINATED OR REFORMED REGARDING ANY OF THE FOLLOWING MANDATES:
  (I)  THOSE  WHICH ARE REQUIRED TO COMPLY WITH FEDERAL LAWS OR RULES OR
TO MEET ELIGIBILITY STANDARDS FOR FEDERAL ENTITLEMENTS;
  (II) THOSE WHICH REAPPORTION THE COSTS OF ACTIVITIES BETWEEN BOARDS OF
EDUCATION, COUNTIES, AND MUNICIPALITIES;
  (III) THOSE WHICH IMPLEMENT PROVISIONS OF THE STATE CONSTITUTION; AND
  (IV) THOSE WHICH THE COUNCIL DETERMINES ARE NECESSARY FOR THE  MAINTE-
NANCE OF THE PUBLIC HEALTH OR SAFETY OF THE PEOPLE OF NEW YORK STATE.
  D.  ALL VOTES OF THE COUNCIL, AND ALL DELIBERATIONS AND REPORTS OF ITS
PROCEEDINGS SHALL BE OPEN TO THE PUBLIC PURSUANT TO ARTICLE SEVEN OF THE
PUBLIC OFFICERS LAW.
  3. COUNCIL ACTIONS ON REGULATORY MANDATES. UPON A DETERMINATION THAT A
MANDATE IN ANY REGULATION, RULE OR ORDER OF ANY STATE  AGENCY  HAS  BEEN
IMPOSED  UPON  ANY  LOCAL GOVERNMENT IN AN UNSOUND, UNDULY BURDENSOME OR
COSTLY MANNER SO AS TO NECESSITATE THAT IT BE  ELIMINATED  OR  REFORMED,
THE COUNCIL SHALL HAVE THE POWER TO:
  A.  REFER A REQUEST BY A LOCAL GOVERNMENT FOR A REVIEW OF SUCH REGULA-
TORY MANDATE, FOR PETITION  BY  SUCH  LOCAL  GOVERNMENT  FOR  A  WAIVER,
MODIFICATION  OR  REPEAL  OF SUCH REGULATORY MANDATE PURSUANT TO SECTION
TWO HUNDRED FOUR-A OF THE STATE ADMINISTRATIVE  PROCEDURE  ACT.  IN  THE
EVENT  THE  COUNCIL  VOTES  TO  MAKE  SUCH REFERRAL ON BEHALF OF A LOCAL
GOVERNMENT, THE STATE AGENCY THAT IS CHARGED WITH REVIEWING THE PETITION
SHALL PROVIDE THE  TECHNICAL  ASSISTANCE  AND  SUPPORT  FOR  SUCH  LOCAL
GOVERNMENT  TO  PROPERLY  PREPARE AND SUBMIT SUCH PETITION. IN THE EVENT
THAT SUCH STATE AGENCY REVIEWING THE PETITION OF  THE  LOCAL  GOVERNMENT
PURSUANT  TO  SECTION  TWO  HUNDRED  FOUR-A  OF THE STATE ADMINISTRATIVE
PROCEDURE ACT DOES NOT PROVIDE THE REMEDY SOUGHT BY SUCH  LOCAL  GOVERN-
MENT,  THE  COUNCIL MAY HEAR AND CONSIDER AN APPEAL OF SUCH DECISION AND
GRANT SUCH RELIEF AS IT DEEMS APPROPRIATE, INCLUDING  THE  MAKING  OF  A
REFERRAL TO THE GOVERNOR FOR THE WAIVING, MODIFYING OR REPEALING OF SUCH
REGULATORY  MANDATE.    THE  COUNCIL  SHALL ADOPT PROCEDURES BY WHICH IT
SHALL CONSIDER, DECIDE AND  EFFECTUATE  THE  REMEDIES  OF  SUCH  APPEALS
CONSISTENT WITH THIS SECTION.
  B.  UPON  A  TWO-THIRDS  VOTE,  REFER A REGULATION TO THE GOVERNOR FOR
REPEAL OR MODIFICATION, WHERE THE COUNCIL HAS PREVIOUSLY DETERMINED THAT
SUCH REGULATION IMPOSES UPON  ANY  LOCAL  GOVERNMENT  A  MANDATE  IN  AN
UNSOUND,  UNDULY  BURDENSOME OR COSTLY MANNER, SO AS TO NECESSITATE THAT
IT BE ELIMINATED OR REFORMED.   UPON RECEIPT OF  SUCH  REFERRAL  BY  THE
COUNCIL,  THE  GOVERNOR SHALL WITHIN SIXTY DAYS, DIRECT THE STATE AGENCY
RESPONSIBLE FOR THE PROMULGATION, REPEAL OR MODIFICATION OF  SUCH  REGU-
LATION  TO  EFFECTUATE  SUCH  REPEAL  OR  MODIFICATION OF THE REGULATION
PURSUANT TO THE PROCEDURES THAT SUCH AGENCY WOULD OTHERWISE BE  REQUIRED

S. 5856                            72                            A. 8518

TO  FOLLOW  UNDER  THE  LAW, HAD SUCH AGENCY ON ITS OWN ACCORD SOUGHT TO
REPEAL OR MODIFY THE REGULATION.
  4. COUNCIL ACTIONS ON STATUTORY MANDATES. THE COUNCIL MAY, UPON A VOTE
OF  SEVEN MEMBERS, REFER A STATUTE TO THE GOVERNOR FOR REPEAL OR MODIFI-
CATION, WHERE THE COUNCIL HAS PREVIOUSLY DETERMINED  THAT  SUCH  STATUTE
IMPOSES  UPON  ANY  LOCAL  GOVERNMENT  A  MANDATE  IN AN UNSOUND, UNDULY
BURDENSOME OR COSTLY MANNER, SO AS TO NECESSITATE THAT IT BE  ELIMINATED
OR  REFORMED. UPON RECEIPT OF THE REFERRAL BY THE COUNCIL, THE GOVERNOR,
WITHIN SIXTY DAYS, SHALL HAVE PREPARED A GOVERNOR'S  PROGRAM  BILL,  FOR
INTRODUCTION  IN  BOTH  HOUSES  OF  THE  LEGISLATURE, TO EFFECTUATE SUCH
REPEAL OR MODIFICATION OF THE STATUTE.
  5. LOCAL GOVERNMENT REQUEST. A LOCAL GOVERNMENT MAY, BY RESOLUTION  OF
ITS  GOVERNING BODY, ASK THE COUNCIL TO REVIEW A SPECIFIC STATUTE, REGU-
LATION, RULE OR ORDER OF STATE  GOVERNMENT  TO  DETERMINE  WHETHER  SUCH
STATUTE,  REGULATION,  RULE  OR ORDER OF STATE GOVERNMENT IS AN UNFUNDED
MANDATE OR IS OTHERWISE UNSOUND, UNDULY BURDENSOME OR COSTLY  SO  AS  TO
REQUIRE  THAT IT BE ELIMINATED OR REFORMED. NO LOCAL GOVERNMENT MAY MAKE
MORE THAN THREE SUCH REQUESTS IN EACH CALENDAR YEAR. UPON  SUCH  REVIEW,
THE  COUNCIL SHALL, BY MAJORITY VOTE, DETERMINE WHETHER SUCH MANDATE HAS
BEEN IMPOSED UPON SUCH LOCAL GOVERNMENT IN AN UNSOUND, UNDULY BURDENSOME
OR COSTLY MANNER,  SO  AS  TO  NECESSITATE  THAT  IT  BE  ELIMINATED  OR
REFORMED.    A  DETERMINATION  OF  THE COUNCIL SHALL RESOLVE ANY DISPUTE
REGARDING WHETHER SUCH A STATUTE, REGULATION, RULE OR ORDER  CONSTITUTES
SUCH  AN  UNFUNDED  MANDATE, BUT SHALL NOT BE DEEMED A JUDICIAL DETERMI-
NATION UNDER THE LAW.
  6. APPEALS. UPON AN APPEAL OF A PETITION PREVIOUSLY DECIDED BY A STATE
AGENCY PURSUANT TO SECTION TWO HUNDRED FOUR-A OF THE  STATE  ADMINISTRA-
TIVE  PROCEDURE  ACT, THE COUNCIL, UPON REQUEST OF THE LOCAL GOVERNMENT,
SHALL REVIEW THE STATE AGENCY'S DETERMINATION AND MAY AFFIRM, MODIFY  OR
REJECT  SUCH  DETERMINATION.   SUCH APPEAL SHALL NOT PRECLUDE OR LIMIT A
LOCAL GOVERNMENT OR ANY OTHER PARTY  WITH  STANDING  FROM  PURSUING  ANY
RIGHT IT MAY HAVE PURSUANT TO A PROCEEDING INSTITUTED IN ACCORDANCE WITH
THE  PROVISIONS  OF  ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND
RULES OR ANY OTHER STATUTE.
  7. REPORTS. THE COUNCIL SHALL  BY  DECEMBER  FIFTEENTH  OF  EACH  YEAR
REPORT  TO  THE  GOVERNOR  AND LEGISLATURE REGARDING ITS ACTIVITIES, AND
REGARDING THE ISSUES, STATUTES, REGULATIONS, RULES AND ORDERS  WHICH  IT
REVIEWED, EXAMINED, PROPOSED, REFERRED, AND/OR CONSIDERED. SUCH REPORTS,
WHICH  SHALL BE ADOPTED UPON A MAJORITY VOTE OF THE MEMBERS OF THE COUN-
CIL, OR THEIR DESIGNEES IN THE CASE OF THE DIRECTOR OF THE  DIVISION  OF
THE  BUDGET  OR THE SECRETARY OF STATE. ALL REPORTS OF THE COUNCIL SHALL
BE POSTED ON A PUBLICLY ACCESSIBLE WEBSITE.
  8. ASSISTANCE OF OTHER AGENCIES. TO EFFECTUATE THE  PURPOSES  OF  THIS
SECTION,  ANY STATE AGENCY SHALL, AT THE REQUEST OF THE COUNCIL, PROVIDE
TO THE COUNCIL SUCH FACILITIES, ASSISTANCE AND DATA AS WILL  ENABLE  THE
COUNCIL TO PROPERLY CARRY OUT ITS RESPONSIBILITIES AND DUTIES.
  S  3.  This act shall take effect immediately; provided, however, that
section one of this act shall take effect on the thirtieth day after  it
shall  have  become  a  law and shall expire January 1, 2015 or upon the
departure from office of the fifty-sixth governor whichever comes first,
provided however that section two of this act shall take effect  January
15,  2012  and  shall  expire January 1, 2015 or upon the departure from
office of the fifty-sixth governor whichever comes first.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or subpart of this act shall be adjudged by any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,

S. 5856                            73                            A. 8518

impair, or invalidate the remainder thereof, but shall  be  confined  in
its  operation  to the clause, sentence, paragraph, subdivision, section
or subpart thereof directly involved in the controversy  in  which  such
judgment  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.
  S  3.  This  act shall take effect immediately provided, however, that
the applicable effective date of Subparts A through H of this act  shall
be as specifically set forth in the last section of such Subparts.
  S 2. 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.
  S 3. This act shall take effect immediately  provided,  however,  that
the  applicable effective date of Parts A through C of this act shall be
as specifically set forth in the last section of such  Parts;  provided,
however that Part B of this act shall remain in full force and effect at
a minimum until and including June 15, 2015.

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