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

                                  5575

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 13, 2009
                               ___________

Introduced  by M. of A. OAKS, CALHOUN, HAWLEY, KOLB, TOWNSEND, WALKER --
  Multi-Sponsored by -- M.  of  A.  BACALLES,  BARCLAY,  BARRA,  BUTLER,
  CROUCH, DUPREY, ERRIGO, FINCH, FITZPATRICK, JORDAN, McDONOUGH, MILLER,
  MOLINARO,  O'MARA,  RABBITT,  SAYWARD, SCOZZAFAVA, THIELE -- read once
  and referred to the Committee on Ways and Means

AN ACT to amend the tax law, the environmental conservation law and  the
  state  finance  law,  in relation to establishing the rural freshwater
  improvement and protection program

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

  Section  1.  Section  606  of  the  tax law is amended by adding a new
subsection (u) to read as follows:
  (U) DEDUCTION FOR SEPTIC SYSTEM UPGRADES, REPLACEMENTS OR REPAIRS.   A
TAXPAYER  SHALL  BE  ALLOWED A DEDUCTION AGAINST THE TAX IMPOSED BY THIS
ARTICLE. THE AMOUNT OF THE DEDUCTION SHALL BE THE ACTUAL  COST  INCURRED
BY  THE  TAXPAYER  IN MAKING SEPTIC SYSTEM UPGRADES, REPAIRS OR REPLACE-
MENTS TO THE TAXPAYER'S PRIMARY OR SECONDARY RESIDENCE.    THE  UPGRADE,
REPAIRS  OR  REPLACEMENT  SHALL  BE  IN  ACCORDANCE WITH A SEPTIC SYSTEM
INSPECTION PROGRAM APPROVED BY THE MUNICIPALITY IN WHICH  THE  RESIDENCE
IS LOCATED.
  S  2.  The  environmental  conservation law is amended by adding a new
section 15-2915 to read as follows:
S 15-2915. RURAL FRESHWATER IMPROVEMENT AND PROTECTION PROGRAM.
  1. THE DEPARTMENT OR ANY LOCAL SOIL AND WATER CONSERVATION DISTRICT AT
THE DIRECTION OF THE DEPARTMENT  SHALL  CREATE  PROPOSED  SEPTIC  SYSTEM
ORDINANCES TO BE ADOPTED BY ANY TOWN OR VILLAGE OF THE STATE WHICH ORDI-
NANCES SHALL DIRECT UPGRADES, REPAIRS OR REPLACEMENTS OF EXISTING SEPTIC
SYSTEMS.
  2.  A  REVOLVING  LOAN  FUND  IS HEREBY CREATED TO BE DISBURSED AT THE
DIRECTION OF THE COMMISSIONER TO COUNTY SOIL AND CONSERVATION  DISTRICTS
CONTAINING  MUNICIPALITIES  WHICH  HAVE  ADOPTED  ORDINANCES PURSUANT TO

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07047-01-9
              

A. 5575                             2

SUBDIVISION ONE OF THIS SECTION,  WHICH  COUNTY  SOIL  AND  CONSERVATION
DISTRICTS  MAY  MAKE  LOANS  TO HOMEOWNERS WHO CAN DEMONSTRATE FINANCIAL
NEED TO MAKE UPGRADES, REPAIRS OR REPLACEMENTS TO SEPTIC SYSTEMS AS  SET
FORTH IN SUBDIVISION ONE OF THIS SECTION.  SUCH LOANS WHICH SHALL BE DUE
AND PAYABLE WITHIN TEN YEARS OR UPON SALE OF THE PROPERTY.
  3.  THE  DEPARTMENT  SHALL AT THE DIRECTION OF THE COMMISSIONER MAKE A
ONE-TIME GRANT TO ANY TOWN OR VILLAGE  OF  THIS  STATE  WHICH  ADOPTS  A
SEPTIC  SYSTEM  ORDINANCE  APPROVED BY THE DEPARTMENT FOR THE PURPOSE OF
DEVELOPING AND CARRYING OUT A  COMPREHENSIVE  SEPTIC  SYSTEM  INSPECTION
PROGRAM.
  S  3. The state finance law is amended by adding a new section 99-q to
read as follows:
  S 99-Q. RURAL FRESHWATER IMPROVEMENT AND PROTECTION PROGRAM  FUND.  1.
THERE  IS  HEREBY  ESTABLISHED  IN  THE JOINT CUSTODY OF THE STATE COMP-
TROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE A SPECIAL  FUND  TO
BE  KNOWN  AS  THE  "RURAL FRESHWATER IMPROVEMENT AND PROTECTION PROGRAM
FUND".
  2. THE FUND SHALL CONSIST OF ALL MONIES APPROPRIATED FOR ITS PURPOSE.
  3. MONEYS OF THE FUND, FOLLOWING APPROPRIATION BY THE LEGISLATURE, MAY
BE EXPENDED IN ACCORDANCE WITH  SECTION  15-2915  OF  THE  ENVIRONMENTAL
CONSERVATION LAW.
  S  4. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.