senate Bill S5278A

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

See Assembly Version of this Bill:
A4086A
Versions:
S5278
S5278A
Legislative Cycle:
2013-2014
Law Section:
Public Services

Sponsor Memo

BILL NUMBER:S5278A

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 authorizes a municipality, after public hearing with notice
and upon affirmative resolution of the municipality, 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. This section also includes
definitions.

Section 2 provides for an immediate effective date.

JUSTIFICATION:

Municipalities that buy water from a private water warts 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. 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--A

                       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   --   committee   discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

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 has held a
public hearing with notice on the matter and has  adopted  a  resolution
and  determined  by  a majority vote of the total voting strength of its
governing body that it is in the overall public interest  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 custom-
ers located in the municipality and that such municipality shall not  be
charged  separately or additionally for costs for infrastructure mainte-
nance 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10876-03-3

S. 5278--A                          2

this  section and may require that such information or application be in
the form and manner as the commission may request.
  2. Definitions. For purposes of this act:
  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 a city, town or village  located  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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