senate Bill S5278

Amended

Authorizes the public service commission, upon application by a municipality, to order costs for infrastructure maintenance and access to be charged to all customer classes

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Bill Status


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

  • 15 / May / 2013
    • REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • 05 / Jun / 2013
    • AMEND AND RECOMMIT TO ENERGY AND TELECOMMUNICATIONS
  • 05 / Jun / 2013
    • PRINT NUMBER 5278A
  • 20 / Jun / 2013
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 20 / Jun / 2013
    • ORDERED TO THIRD READING CAL.1533
  • 20 / Jun / 2013
    • SUBSTITUTED BY A4086A

Summary

Authorizes the public service commission, upon application by a municipality, following a local law, to order costs for infrastructure maintenance and access to be charged to all customer classes located in such municipality; provides that all costs allocated to the infrastructure maintenance and access function of a water-works corporation including equipment used in connection with the sale, furnishing, transmission and distribution of water for domestic, commercial, public and emergency purposes are eligible to be apportioned to customers in a municipality; defines municipality as a city, town or village in Westchester county.

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Bill Details

Versions:
S5278
S5278A
Legislative Cycle:
2013-2014
Law Section:
Public Services

Sponsor Memo

BILL NUMBER:S5278

TITLE OF BILL: An act in relation to authorizing the public service
commission, upon application by a municipality, to order costs for
infrastructure maintenance and access to be charged to all customer
classes located in such municipality

PURPOSE OR GENERAL IDEA OF THE BILL:

To reduce property taxes by having all water rate payers pay for the
costs associated with fire hydrant infrastructure maintenance and
access charged to a municipality by a private water company.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 (1) authorizes a municipality, after the adoption of a local
law, to apply to the public service commission to have the costs
associated with infrastructure, maintenance and access it is charged
by a private water works corporation to be charged to all customers
across all customer classes. Any savings achieved as a result shall be
applied to the property tax levy of the municipality in an amount
equal to such savings in the following fiscal year.

Within 120 days of receiving an application, the public service
commission is empowered to issue an order to have costs for
infrastructure maintenance charged to all customer classes in the
municipality, relieving the municipality from being charged separately
or additionally for the costs. The public service commission can also
request information from the water-works corporation or municipality
and require that the information be provided in their format.

Section 1 (2) provides definitions for "costs for infrastructure
maintenance and access"; "municipality"; and "water-works
corporation". Municipality is defined as the nine member consortium of
New Rochelle, Bronxville, Pelham, Pelham Manor, Hastings-on-Hudson,
Eastchester, Tuckahoe, Dobbs Ferry, and Ardsiey.

Section 2 provides that the act shall take effect immediately.

JUSTIFICATION:

Municipalities that buy water from a private water corporation have a
separate line item in their budgets to pay for fire hydrant
infrastructure maintenance and access. The burden of this cost is
borne by municipal tax payers and not all water rate payers. This is
not the case in municipalities which own their own water systems. Upon
investigation, it is evident that many municipal water systems charge
all rate payers, not just taxpayers, for all costs associated with
water distribution, including hydrant costs. This legislation aims to
remedy this inequity and apply the savings to reduce property taxes.

The City of New Rochelle is a municipality that buys water from a
private waterworks corporation and a member of a consortium of nine
Westchester communities served by a private water company. In 2012,
the Citizen's Panel on Sustainable Budgets ("Panel"), a group of
community members, was tasked with examining the City's budget and
proposing solutions to address its fiscal challenges. The Panel


submitted its final report in September of 2012. One of its
recommendations is to relieve property taxpayers of hydrant
maintenance costs. This legislation was introduced in response to this
recommendation.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

Immediately

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

                                  5278

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 15, 2013
                               ___________

Introduced  by  Sen.  STEWART-COUSINS -- read twice and ordered printed,
  and when printed to be committed to the Committee on Energy and  Tele-
  communications

AN  ACT  in  relation to authorizing the public service commission, upon
  application by a municipality, to order costs for infrastructure main-
  tenance and access to be charged to all customer  classes  located  in
  such municipality

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

  Section 1. 1. Notwithstanding any law to the contrary, a  municipality
may apply to the public service commission to have any costs for infras-
tructure  maintenance  and  access it is charged by a water-works corpo-
ration to instead be charged to all customers across all customer class-
es located in the municipality provided the municipality adopts a  local
law  to  have  such  costs  charged to all customers across all customer
classes.   Any savings achieved as a result  of  this  action  shall  be
applied  to  the property tax levy of the municipality which has adopted
such a resolution in an amount equal to such savings  in  the  following
fiscal year.  Within 120 days after receiving an application pursuant to
this  act,  the  public  service commission is empowered and directed to
issue an order requiring that costs for infrastructure  maintenance  and
access  be  included  in  the  rates charged to all customer classes and
apportioned among all customers located in  the  municipality  and  that
such  municipality  shall  not be charged separately or additionally for
costs for infrastructure maintenance and access.    The  public  service
commission  shall  have the power to request any information that it may
deem necessary from the water-works corporation or municipality so  that
it  may  issue an order as required by this section and may require that
such information or application be in the form and manner as the commis-
sion may request.
  2. Definitions. For purposes of this act:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10876-01-3

S. 5278                             2

  a. "costs for infrastructure maintenance and access" means  all  costs
associated  with  maintenance and operation of infrastructure and equip-
ment used in connection with  the  sale,  furnishing,  transmission  and
distribution  of  water  for  domestic, commercial, public and emergency
purposes  and shall also mean costs or charges associated with municipal
access to infrastructure or equipment.
  b. "municipality" shall mean the city of New Rochelle, the village  of
Bronxville, the town of Pelham, the village of Pelham Manor, the village
of Hastings-on-Hudson, the town of Eastchester, the village of Tuckahoe,
the  village of Dobbs Ferry and the village of Ardsley, in the county of
Westchester.
  c. "water-works corporation" shall have the same meaning as that  term
is defined in section 2 of the public service law.
  S 2. This act shall take effect immediately.

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