S T A T E O F N E W Y O R K
________________________________________________________________________
1785
2009-2010 Regular Sessions
I N A S S E M B L Y
January 12, 2009
___________
Introduced by M. of A. CALHOUN, BACALLES, THIELE, BARRA, ERRIGO, KOLB --
Multi-Sponsored by -- M. of A. BUTLER, CROUCH, FINCH, TEDISCO, TOWN-
SEND -- read once and referred to the Committee on Ways and Means
AN ACT to amend the state finance law, in relation to state payment for
state mandates
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative findings and declaration. The legislature finds
and declares that:
(A) Actions of the state government that directly or indirectly
prescribe the manner, standards, level and conditions of public service
to be provided by the state's counties, municipalities and school
districts are often taken with little regard for the fiscal consequences
of such actions upon the affected local jurisdictions.
(B) Many of the state's counties and municipalities are experiencing
varying degrees of fiscal stress resulting from the need to provide
adequate public services to their citizens but without the local tax
resources to do so.
(C) The state government, prior to imposing new or expanded service
requirements upon its political subdivisions, should be aware of and
confront the issue of where the burden of paying for those requirements
will fall.
(D) It is appropriate, therefore, that the state government provide
full funding for any net additional costs to counties, municipalities or
school districts that are incurred by those jurisdictions in complying
with the required performance of a new or expanded program or service
under the provisions of any state law, rule, regulation or order.
S 2. Short title. This act shall be known and may be cited as the
"state payment for mandates act".
S 3. The state finance law is amended by adding a new article 4-B to
read as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02239-01-9
A. 1785 2
ARTICLE 4-B
STATE PAYMENT FOR MANDATES
SECTION 54-P. DEFINITIONS.
54-Q. FUNDING OF STATE MANDATES.
54-R. MANDATE REVIEW REQUIREMENTS.
54-S. NOTIFICATION OF LOCAL IMPACT STATEMENT.
54-T. APPROPRIATIONS REQUIREMENT.
S 54-P. DEFINITIONS. AS USED IN THIS ARTICLE:
1. "DIVISION" MEANS THE STATE DIVISION OF THE BUDGET.
2. "COUNTY" MEANS THE GOVERNING BODY AND THE OFFICERS AND EMPLOYEES OF
A COUNTY.
3. "EXPANDED PROGRAM OR SERVICE" MEANS A PROGRAM OR SERVICE THE SCOPE
OR LEVEL OF WHICH WOULD BE INCREASED, EXTENDED OR ENHANCED BY A COUN-
TY'S, MUNICIPALITY'S OR SCHOOL DISTRICT'S COMPLIANCE WITH THE PROVISIONS
OF A STATE LAW, REGULATION, RULE OR ORDER.
4. "MUNICIPALITY" MEANS THE GOVERNING BODY AND THE OFFICERS AND
EMPLOYEES OF A MUNICIPALITY.
5. "NET ADDITIONAL COST" MEANS THE COST OR COSTS INCURRED OR ANTIC-
IPATED TO BE INCURRED WITHIN A ONE-YEAR PERIOD BY A COUNTY, MUNICIPALITY
OR SCHOOL DISTRICT IN PERFORMING OR ADMINISTERING A NEW OR EXPANDED
PROGRAM OR SERVICE REQUIRED BY A STATE LAW, REGULATION, RULE OR ORDER,
AFTER SUBTRACTING THEREFROM ANY REVENUES RECEIVED OR RECEIVABLE BY THE
COUNTY, MUNICIPALITY OR SCHOOL DISTRICT ON ACCOUNT OF THE PROGRAM OR
SERVICE, INCLUDING BUT NOT LIMITED TO:
(A) FEES CHARGED TO THE RECIPIENTS OF THE PROGRAM OR SERVICE;
(B) STATE OR FEDERAL AID PAID SPECIFICALLY OR CATEGORICALLY IN
CONNECTION WITH THE PROGRAM OR SERVICE; AND
(C) ANY OFFSETTING SAVINGS RESULTING FROM THE DIMINUTION OR ELIMI-
NATION OF ANY OTHER PROGRAM OR SERVICE DIRECTLY ATTRIBUTABLE TO THE
PERFORMANCE OR ADMINISTRATION OF THE REQUIRED PROGRAM OR SERVICE.
6. "NEW PROGRAM OR SERVICE" MEANS A PROGRAM OR SERVICE DIFFERENT IN
KIND OR PURPOSE FROM THOSE IN EXISTENCE AT THE TIME OF THE ENACTMENT OF
A LAW OR PROMULGATION OF A RULE, REGULATION OR ORDER REQUIRING THE
PERFORMANCE OR ADMINISTRATION OF THE PROGRAM BY ONE OR MORE COUNTIES,
MUNICIPALITIES OR SCHOOL DISTRICTS.
7. "PROGRAM OR SERVICE" MEANS A SPECIFIC AND IDENTIFIABLE ACTIVITY OF
A COUNTY, MUNICIPALITY OR SCHOOL DISTRICT WHICH IS AVAILABLE TO THE
GENERAL PUBLIC OR WHICH IS CONDUCTED, ADMINISTERED OR PROVIDED FOR OR ON
BEHALF OF THE CITIZENS OF A COUNTY, MUNICIPALITY OR SCHOOL DISTRICT.
8. "SCHOOL DISTRICT" MEANS THE GOVERNING BODY AND OFFICERS AND EMPLOY-
EES OF A SCHOOL DISTRICT.
S 54-Q. FUNDING OF STATE MANDATES. 1. NOTWITHSTANDING ANY LAW, REGU-
LATION, RULE OR ORDER TO THE CONTRARY, AND EXCEPT AS PROVIDED IN SUBDI-
VISIONS THREE AND FOUR OF THIS SECTION, ANY PROVISION OF A LAW OR OF A
RULE, REGULATION OR ORDER ISSUED PURSUANT TO LAW, WHICH BECOMES EFFEC-
TIVE ON OR AFTER THE EFFECTIVE DATE OF THIS ARTICLE, AND WHICH HAS THE
EFFECT OF REQUIRING A COUNTY, MUNICIPALITY OR SCHOOL DISTRICT TO PERFORM
OR ADMINISTER A NEW OR EXPANDED PROGRAM OR SERVICE HAVING A NET ADDI-
TIONAL COST IN EXCESS OF ONE THOUSAND DOLLARS FOR ANY COUNTY, MUNICI-
PALITY OR SCHOOL DISTRICT OR ONE HUNDRED THOUSAND DOLLARS FOR ALL
AFFECTED COUNTIES, MUNICIPALITIES OR SCHOOL DISTRICTS, SHALL BE INOPERA-
TIVE ON THE COUNTY, MUNICIPALITY OR SCHOOL DISTRICTS UNTIL A STATE
APPROPRIATION IS MADE AND SUFFICIENT FUNDS PROVIDED TO EACH AFFECTED
COUNTY, MUNICIPALITY OR SCHOOL DISTRICT AS MAY BE NECESSARY TO PAY IN
FULL ANY NET ADDITIONAL COST OF COMPLIANCE WITH THE REQUIREMENT.
A. 1785 3
2. A LAW SUBJECT TO THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION
SHALL MAKE AN INITIAL APPROPRIATION THEREIN IN AN AMOUNT SUFFICIENT TO
PAY IN FULL ANY NET ADDITIONAL COST OF COMPLIANCE BY THE AFFECTED COUN-
TIES OR MUNICIPALITIES, OR BOTH AS THE CASE MAY BE. THEREAFTER, THE
STATE SHALL PROVIDE FUNDING FOR CONTINUING PROGRAMS OR SERVICES, SUBJECT
TO THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION, IN THE ANNUAL
APPROPRIATIONS ACT OR SUPPLEMENTS THERETO OR IN APPROPRIATIONS OF BOND
MONEYS OR OTHER DESIGNATED SOURCES OF FUNDING. A RULE, REGULATION OR
ORDER SUBJECT TO SUBDIVISION ONE OF THIS SECTION SHALL BE FUNDED IN THE
ANNUAL APPROPRIATIONS ACT OR SUPPLEMENTS THERETO, OR IN APPROPRIATIONS
OF BOND MONEYS OR OTHER DESIGNATED SOURCES OF FUNDING.
3. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO ANY NEW OR
EXPANDED PROGRAM OR SERVICE THAT:
(A) IS REQUIRED OR ARISES FROM A COURT ORDER OR JUDGMENT;
(B) IS PROVIDED AT THE OPTION OF THE COUNTY, MUNICIPALITY OR SCHOOL
DISTRICT UNDER A LAW, REGULATION, RULE OR ORDER THAT IS PERMISSIVE RATH-
ER THAN MANDATORY;
(C) IS REQUIRED BY PRIVATE, SPECIAL OR LOCAL LAWS; OR
(D) IS REQUIRED BY OR ARISES FROM AN EXECUTIVE ORDER OF THE GOVERNOR
EXERCISING HIS EMERGENCY POWERS.
4. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY WHEN A LAW REQUIRING
A COUNTY, MUNICIPALITY OR SCHOOL DISTRICT TO PERFORM OR ADMINISTER A NEW
OR EXPANDED PROGRAM OR SERVICE IS ENACTED WITHOUT MAKING AN APPROPRI-
ATION PURSUANT TO SUBDIVISION TWO OF THIS SECTION, PROVIDED THAT THE
BILL RESULTING IN THE ENACTMENT OF THE LAW SHALL PASS THE LEGISLATURE BY
A TWO-THIRDS VOTE OF ALL THE MEMBERS OF THE SENATE AND ASSEMBLY.
S 54-R. MANDATE REVIEW REQUIREMENTS. 1. WHENEVER ANY BILL IS INTRO-
DUCED INTO EITHER HOUSE OF THE LEGISLATURE, AND THAT BILL RECEIVES FIRST
READING PURSUANT TO THE RULES OF THE HOUSE INTO WHICH IT IS INTRODUCED,
THE BILL SHALL BE IMMEDIATELY REVIEWED BY THE CHAIRMAN OF THE SENATE
FINANCE COMMITTEE OR THE ASSEMBLY WAYS AND MEANS COMMITTEE AS APPROPRI-
ATE. IF, UPON HIS REVIEW, HE DETERMINES THAT THE BILL WILL NOT RESULT
IN NET ADDITIONAL COSTS IF THE BILL IS ENACTED, HE SHALL CERTIFY THAT
DETERMINATION, ON A STATEMENT SIGNED BY HIM AND FILED IN HIS OFFICE. IF
HE DETERMINES THAT THE BILL MAY RESULT IN NET ADDITIONAL COSTS IF
ENACTED, HE SHALL IMMEDIATELY FORWARD NOTICE TO THE BILL'S SPONSOR AND
THE CHAIRMAN OF THE COMMITTEE, IF ANY, TO WHICH THE BILL HAS BEEN
REFERRED OR TO THE PRESIDING OFFICER OF THE HOUSE IN WHICH THE BILL
ORIGINATED IF NO SUCH REFERENCE WAS MADE, THAT, IN HIS JUDGMENT, A LOCAL
IMPACT STATEMENT IS REQUIRED. HE SHALL ALSO FORWARD A NOTICE TO THE
DIVISION THAT SUCH A BILL HAS BEEN INTRODUCED AND THAT A LOCAL IMPACT
STATEMENT IS REQUIRED.
2. UPON RECEIPT OF SUCH NOTICE THAT A BILL HAS BEEN INTRODUCED IN THE
LEGISLATURE THAT MAY RESULT IN NET ADDITIONAL COSTS TO A COUNTY, MUNICI-
PALITY OR SCHOOL DISTRICT, THE DIVISION SHALL COMPLETE AS SOON AS POSSI-
BLE, BUT WITHIN THIRTY DAYS OF NOTIFICATION, A LOCAL IMPACT STATEMENT
CONTAINING THE MOST ACCURATE ESTIMATE POSSIBLE, IN DOLLARS, OF THE NET
ADDITIONAL COSTS, IF ANY, THAT WILL BE REQUIRED OF A COUNTY, MUNICI-
PALITY OR SCHOOL DISTRICT TO PERFORM OR ADMINISTER A NEW OR EXPANDED
PROGRAM OR SERVICE. LOCAL IMPACT STATEMENTS COMPLETED PURSUANT TO THIS
SUBDIVISION SHALL BE FORTHWITH DELIVERED TO THE GOVERNOR AND THE PRESID-
ING OFFICERS OF THE SENATE AND ASSEMBLY.
3. WHENEVER ANY STATE ADMINISTRATIVE OR EXECUTIVE RULE, REGULATION OR
ORDER IS PROPOSED OR ADOPTED, THE STATE DEPARTMENT HEAD OR STATE OFFICE
ISSUING THE RULE, REGULATION OR ORDER, AND THE SECRETARY OF STATE, OR
THE GOVERNOR, AS MAY BE CUSTODIAN OF THE RULE, REGULATION OR ORDER,
A. 1785 4
SHALL FORTHWITH FORWARD A COPY OF THE PROPOSED OR ADOPTED RULE, REGU-
LATION OR ORDER TO THE DIVISION WITH A NOTICE TO COMPLETE A LOCAL IMPACT
STATEMENT WITHIN THIRTY DAYS OF THE PROPOSAL OR ADOPTION.
4. UPON RECEIPT OF A NOTICE FROM THE SECRETARY OF STATE, A STATE
DEPARTMENT HEAD, A STATE OFFICER OR THE GOVERNOR OF THE PROPOSAL OR
ADOPTION OF AN EXECUTIVE OR ADMINISTRATIVE RULE, REGULATION OR ORDER BY
THAT OFFICIAL, THE DIVISION SHALL COMPLETE AS SOON AS POSSIBLE, BUT
WITHIN THIRTY DAYS OF NOTIFICATION, A LOCAL IMPACT STATEMENT CONTAINING
THE MOST ACCURATE ESTIMATE POSSIBLE, IN DOLLARS, OF THE NET ADDITIONAL
COSTS, IF ANY, THAT WILL BE REQUIRED OF A COUNTY, MUNICIPALITY OR SCHOOL
DISTRICT TO PERFORM OR ADMINISTER A NEW OR EXPANDED PROGRAM OR SERVICE.
LOCAL IMPACT STATEMENTS COMPLETED PURSUANT TO THIS SUBDIVISION SHALL BE
FORTHWITH DELIVERED TO THE GOVERNOR AND THE PRESIDING OFFICERS OF THE
SENATE AND ASSEMBLY TOGETHER WITH A COPY OF THE RULE, REGULATION OR
ORDER.
5. THE DIVISION SHALL CONDUCT AN ANNUAL REVIEW OF ALL PENDING LEGISLA-
TIVE BILLS, AND LAWS, REGULATIONS, RULES AND ORDERS ENACTED OR ADOPTED
AFTER THE EFFECTIVE DATE OF THIS ARTICLE, FOR WHICH THE DIVISION HAS
PREVIOUSLY COMPLETED A LOCAL IMPACT STATEMENT. ANY ANNUAL CHANGE IN THE
DOLLAR ESTIMATE OF THE NET ADDITIONAL COSTS FROM THAT PROVIDED IN THE
ORIGINAL LOCAL IMPACT STATEMENT SHALL BE UPDATED AS A RESULT OF THE
REVIEW TO DISCLOSE THAT CHANGE, AND THE UPDATED LOCAL IMPACT STATEMENT
SHALL BE DELIVERED TO THE RECIPIENTS OF THE ORIGINAL LOCAL IMPACT STATE-
MENT.
S 54-S. NOTIFICATION OF LOCAL IMPACT STATEMENT. A BILL FOR WHICH A
LOCAL IMPACT STATEMENT IS REQUIRED SHALL NOT PROCEED FROM SECOND TO
THIRD READING IN THE HOUSE OF ORIGIN UNTIL THE COMPLETED LOCAL IMPACT
STATEMENT IS RECEIVED BY THE PRESIDING OFFICER OF THAT HOUSE. THE
PRESIDING OFFICER SHALL CAUSE NOTICE OF THE RECEIPT OF EACH LOCAL IMPACT
STATEMENT TO BE ENTERED ON THE JOURNAL OF THAT HOUSE.
S 54-T. APPROPRIATIONS REQUIREMENT. EXCEPT AS OTHERWISE PROVIDED IN
THIS ARTICLE, A BILL FOR WHICH A LOCAL IMPACT STATEMENT HAS BEEN
RECEIVED SHALL NOT RECEIVE PASSAGE IN EITHER HOUSE UNTIL IT CONTAINS
THEREIN AN APPROPRIATION AT LEAST EQUAL IN AMOUNT TO THE AMOUNT ESTI-
MATED IN THE LOCAL IMPACT STATEMENT AS NECESSARY TO PAY IN FULL ANY NET
ADDITIONAL COSTS OF COMPLIANCE THEREWITH.
S 4. This act shall take effect on the first of April next succeeding
the date on which it shall have become a law.