LBD10689-05-9
A. 7340--C 2
education law relating to annual reports on universal prekindergarten
programs
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative intent. State mandated programs, unlike local
service decisions, place local taxpayers and local officials in the
position of paying for services that they do not control. Increasingly,
however, the state has set local priorities and forced municipal taxing
decisions by mandating services, programs, and standards. As a result,
many local governments and school districts are today in an acutely
difficult fiscal situation.
Thus, in order to prevent irresponsible state actions which prevent
localities from making their own decisions, and which force unwanted
local property tax increases, it is necessary to ensure that state
mandates will not be forced on localities and school districts unless
they are adequately funded.
S 2. The real property tax law is amended by adding a new section
1306-b to read as follows:
S 1306-B. "MIDDLE CLASS STAR" REBATE PROGRAM. 1. TAX REBATES. (A) IF A
PARCEL IS ENTITLED TO THE BASIC OR ENHANCED STAR EXEMPTION AUTHORIZED BY
SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER FOR THE TWO THOUSAND
SIX--TWO THOUSAND SEVEN SCHOOL YEAR AND EACH YEAR THEREAFTER, A LOCAL
PROPERTY TAX REBATE SHALL BE PROVIDED TO THE OWNER OR OWNERS OF SUCH
PARCEL AS SHOWN ON THE FINAL ASSESSMENT ROLL FOR SUCH YEAR, IN AN AMOUNT
COMPUTED AS PRESCRIBED BY THIS SECTION AND SECTION ONE HUNDRED SEVENTY-
EIGHT OF THE TAX LAW.
(B) IT SHALL BE THE RESPONSIBILITY OF THE STATE DEPARTMENT OF TAXATION
AND FINANCE TO ISSUE SUCH TAX REBATES TO SUCH OWNERS IN THE MANNER
PROVIDED BY SECTION ONE HUNDRED SEVENTY-EIGHT OF THE TAX LAW. NOTHING
CONTAINED HEREIN SHALL BE CONSTRUED AS PERMITTING PARTIAL OR INSTALLMENT
PAYMENTS OF TAXES IN A JURISDICTION WHICH HAS NOT AUTHORIZED THE SAME
PURSUANT TO LAW.
2. PROCEDURE. (A) ON OR BEFORE AUGUST FIFTEENTH, TWO THOUSAND NINE AND
EACH YEAR THEREAFTER, THE EXECUTIVE DIRECTOR OF THE OFFICE OF REAL PROP-
ERTY SERVICES, OR HIS OR HER DESIGNEE, OR ON OR BEFORE JULY FIRST, TWO
THOUSAND NINE AND EACH YEAR THEREAFTER, IN THE CASE OF A CITY WITH A
POPULATION OF ONE MILLION OR MORE, THE COMMISSIONER OF FINANCE, OR HIS
OR HER DESIGNEE, SHALL PROVIDE TO THE COMMISSIONER OF TAXATION AND
FINANCE A REPORT IN A MUTUALLY AGREEABLE FORMAT CONCERNING THOSE PARCELS
WHICH HAVE BEEN GRANTED AN EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED
TWENTY-FIVE OF THIS CHAPTER ON THE ASSESSMENT ROLLS USED TO GENERATE THE
SCHOOL TAX BILLS FOR THE TWO THOUSAND NINE--TWO THOUSAND TEN SCHOOL TAX
YEAR AND FOR EACH YEAR THEREAFTER; PROVIDED HOWEVER THE INFORMATION TO
BE PROVIDED ON SUCH REPORT SHALL BE OBTAINED FROM THE FINAL ASSESSMENT
ROLL DATA FILES USED TO GENERATE THE TWO THOUSAND NINE--TWO THOUSAND TEN
SCHOOL TAX BILLS AND EACH YEAR THEREAFTER, FILED WITH THE STATE BOARD
PURSUANT TO SECTION FIFTEEN HUNDRED NINETY OF THIS CHAPTER ON OR BEFORE
JULY THIRTY-FIRST OF SUCH YEAR. SUCH REPORT SHALL SET FORTH THE NAMES
AND MAILING ADDRESSES OF THE OWNERS OF SUCH PARCELS AS SHOWN ON SUCH
ASSESSMENT ROLL DATA FILES, THE IDENTIFICATION NUMBERS OF SUCH PARCELS
AS SHOWN ON SUCH ASSESSMENT ROLL DATA FILES, AND SUCH OTHER INFORMATION
IN THE POSSESSION OF THE OFFICE OF REAL PROPERTY SERVICES, OR IN THE
CASE OF A CITY WITH A POPULATION OF ONE MILLION OR MORE, THE COMMISSION-
A. 7340--C 3
ER OF FINANCE, AS THE COMMISSIONER OF TAXATION AND FINANCE MAY DEEM
NECESSARY FOR THE EFFECTIVE ADMINISTRATION OF THIS PROGRAM, INCLUDING
INFORMATION REGARDING COOPERATIVE APARTMENT BUILDINGS AND MOBILE HOME
PARKS OR SIMILAR PROPERTY. IT SHALL BE THE RESPONSIBILITY OF THE ASSES-
SOR OR ASSESSORS OF EACH ASSESSING UNIT TO ENSURE THAT THE NAMES AND
MAILING ADDRESSES OF SUCH OWNERS ARE ACCURATELY RECORDED ON SUCH ROLLS
AND FILES TO THE BEST OF HIS OR HER ABILITY, BASED UPON THE INFORMATION
CONTAINED IN HIS OR HER OFFICE. NOTHING CONTAINED IN THIS SUBDIVISION
SHALL BE CONSTRUED AS AFFECTING IN ANY WAY THE VALIDITY OR ENFORCEABILI-
TY OF A REAL PROPERTY TAX, OR THE APPLICABILITY OF INTEREST OR PENALTIES
WITH RESPECT THERETO, WHEN AN OWNER'S NAME OR MAILING ADDRESS HAS NOT
BEEN ACCURATELY RECORDED.
(B) (I) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDI-
VISION, WHERE AN ASSESSING UNIT CONTAINS ONE OR MORE PROPERTIES WHICH
ARE RECEIVING SUCH EXEMPTION IN RELATION TO A PRIOR YEAR ASSESSMENT ROLL
PURSUANT TO PARAGRAPH (D) OF SUBDIVISION SIX OF SECTION FOUR HUNDRED
TWENTY-FIVE OF THIS CHAPTER, OR CONTAINS ONE OR MORE PARCELS WITH
RESPECT TO WHICH SUCH EXEMPTION WAS DULY ADDED OR REMOVED AFTER THE
FILING OF THE FINAL ASSESSMENT ROLL PURSUANT TO THE PROVISIONS OF TITLE
THREE OF ARTICLE FIVE OF THIS CHAPTER, THE OFFICE OF REAL PROPERTY
SERVICES MAY REQUIRE THE ASSESSOR TO FILE WITH IT, ON OR BEFORE JULY
THIRTY-FIRST, TWO THOUSAND NINE AND EACH YEAR THEREAFTER, OR SUCH LATER
DATE AS SUCH OFFICE MAY SPECIFY, A SUPPLEMENTAL REPORT RELATING TO SUCH
PROPERTY OR PROPERTIES, SO THAT INFORMATION PERTAINING TO THE OWNERS
THEREOF MAY BE INCLUDED IN THE REPORT TO BE MADE TO THE COMMISSIONER OF
TAXATION AND FINANCE PURSUANT TO THIS PARAGRAPH. WHEN ANY INFORMATION
REQUIRED BY THIS PARAGRAPH IS RECEIVED BY THE OFFICE OF REAL PROPERTY
SERVICES AFTER JULY THIRTY-FIRST, TWO THOUSAND NINE AND EACH YEAR THERE-
AFTER, SUCH INFORMATION SHALL BE TRANSMITTED AS SOON AS REASONABLY PRAC-
TICABLE TO THE COMMISSIONER OF TAXATION AND FINANCE FOR USE IN ISSUING
LOCAL PROPERTY TAX REBATES PURSUANT TO SECTION ONE HUNDRED SEVENTY-EIGHT
OF THE TAX LAW.
(II) WHERE THE OWNERSHIP OF A PARCEL THAT HAD BEEN ELIGIBLE FOR A
REBATE PURSUANT TO THIS SECTION CHANGES OR AN EXEMPTION UNDER SECTION
FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER HAS BEEN GRANTED OR REMOVED,
THE ASSESSOR SHALL NOTIFY THE STATE BOARD OF THE CHANGE NO LATER THAN
AUGUST FIRST OF THE FOLLOWING YEAR. THE STATE BOARD SHALL FORWARD SUCH
REPORT TO THE DEPARTMENT OF TAXATION AND FINANCE IN A TIMELY MANNER AND
IN A MUTUALLY-AGREEABLE FORMAT.
3. (A) THE STATE BOARD SHALL CALCULATE THE REBATE BASE AS PROVIDED
HEREIN AND CERTIFY THE SAME TO THE DEPARTMENT OF TAXATION AND FINANCE NO
LATER THAN JULY FIRST, TWO THOUSAND NINE.
(B) THREE REBATE BASES FOR THE BASIC STAR EXEMPTION SHALL BE DETER-
MINED FOR EACH SEGMENT FOR THE TWO THOUSAND NINE--TWO THOUSAND TEN AND
SUBSEQUENT SCHOOL YEARS. SUCH REBATE BASES SHALL BE COMPUTED BY DETER-
MINING THE EXEMPT AMOUNT ESTABLISHED FOR THE SEGMENT FOR PURPOSES OF THE
BASIC STAR EXEMPTION FOR THE TWO THOUSAND EIGHT--TWO THOUSAND NINE
SCHOOL YEAR, MULTIPLYING THAT AMOUNT BY THE SCHOOL DISTRICT TAX RATE
APPLICABLE WITHIN THAT SEGMENT FOR PURPOSES OF THE TWO THOUSAND
EIGHT--TWO THOUSAND NINE SCHOOL YEAR, AS REPORTED BY THE SCHOOL
DISTRICT, AND THEN MULTIPLYING THE PRODUCT BY THE FOLLOWING:
(I) FOR PURPOSES OF THE TWO THOUSAND NINE--TWO THOUSAND TEN SCHOOL
YEAR AND THE TWO THOUSAND TEN--TWO THOUSAND ELEVEN SCHOOL YEAR, BY SIXTY
PERCENT, FORTY-FIVE PERCENT AND THIRTY PERCENT, RESPECTIVELY. THE
RESULTS SHALL BE ASSOCIATED WITH THE FIRST, SECOND AND THIRD INCOME
BRACKETS, RESPECTIVELY, THAT ARE APPLICABLE WITHIN THAT SEGMENT.
A. 7340--C 4
(II) FOR PURPOSES OF THE TWO THOUSAND ELEVEN--TWO THOUSAND TWELVE
SCHOOL YEAR, BY SEVENTY PERCENT, FIFTY-TWO AND ONE-HALF PERCENT AND
THIRTY-FIVE PERCENT, RESPECTIVELY. THE RESULTS SHALL BE ASSOCIATED WITH
THE FIRST, SECOND AND THIRD INCOME BRACKETS, RESPECTIVELY, THAT ARE
APPLICABLE WITHIN THAT SEGMENT.
(III) FOR PURPOSES OF THE TWO THOUSAND TWELVE--TWO THOUSAND THIRTEEN
AND SUBSEQUENT SCHOOL YEARS, BY EIGHTY PERCENT, SIXTY PERCENT AND FORTY
PERCENT, RESPECTIVELY. THE RESULTS SHALL BE ASSOCIATED WITH THE FIRST,
SECOND AND THIRD INCOME BRACKETS, RESPECTIVELY, THAT ARE APPLICABLE
WITHIN THAT SEGMENT.
(IV) INCOME BRACKETS. (A) IN THE CITY OF NEW YORK, AND THE COUNTIES OF
NASSAU, SUFFOLK, ROCKLAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS, THE
FIRST INCOME BRACKET SHALL BE UP TO AND INCLUDING ONE HUNDRED TWENTY
THOUSAND DOLLARS; THE SECOND INCOME BRACKET SHALL BE OVER ONE HUNDRED
TWENTY THOUSAND DOLLARS UP TO AND INCLUDING ONE HUNDRED SEVENTY-FIVE
THOUSAND DOLLARS; AND THE THIRD INCOME BRACKET SHALL BE OVER ONE HUNDRED
SEVENTY-FIVE THOUSAND DOLLARS UP TO AND INCLUDING TWO HUNDRED FIFTY
THOUSAND DOLLARS.
(B) IN ALL OTHER COUNTIES IN THE STATE, THE FIRST INCOME BRACKET SHALL
BE UP TO AND INCLUDING NINETY THOUSAND DOLLARS; THE SECOND INCOME BRACK-
ET SHALL BE OVER NINETY THOUSAND DOLLARS AND UP TO AND INCLUDING ONE
HUNDRED FIFTY THOUSAND DOLLARS; AND THE THIRD INCOME BRACKET SHALL BE
OVER ONE HUNDRED FIFTY THOUSAND DOLLARS AND UP TO AND INCLUDING TWO
HUNDRED FIFTY THOUSAND DOLLARS.
(C) SUCH BRACKETS ARE SUBJECT TO INDEXING FOR INFLATION PURSUANT TO
SUBDIVISION FIFTEEN OF SECTION ONE HUNDRED SEVENTY-EIGHT OF THE TAX LAW.
(C) ONE REBATE BASE FOR THE ENHANCED STAR EXEMPTION SHALL BE DETER-
MINED FOR EACH SEGMENT FOR THE TWO THOUSAND NINE--TWO THOUSAND TEN AND
SUBSEQUENT SCHOOL YEARS. SUCH REBATE BASES SHALL BE COMPUTED BY DETER-
MINING THE EXEMPT AMOUNT ESTABLISHED FOR THE SEGMENT FOR PURPOSES OF THE
ENHANCED STAR EXEMPTION FOR THE TWO THOUSAND EIGHT--TWO THOUSAND NINE
SCHOOL YEAR, MULTIPLYING THAT AMOUNT BY THE SCHOOL DISTRICT TAX RATE
APPLICABLE WITHIN THAT SEGMENT FOR PURPOSES OF THAT SCHOOL YEAR, AS
REPORTED BY THE SCHOOL DISTRICT, AND THEN MULTIPLYING THE PRODUCT BY THE
FOLLOWING:
(I) FOR PURPOSES OF THE TWO THOUSAND NINE--TWO THOUSAND TEN SCHOOL
YEAR, BY TWENTY-FIVE PERCENT.
(II) FOR PURPOSES OF THE TWO THOUSAND TEN--TWO THOUSAND ELEVEN AND
SUBSEQUENT SCHOOL YEARS, BY THIRTY-FIVE PERCENT.
(D) FOR PURPOSES OF THIS SECTION, THE TERM "SEGMENT" MEANS THE PART OF
A CITY OR TOWN THAT IS WITHIN A SCHOOL DISTRICT.
(E) IN THE CASE OF SCHOOL DISTRICTS WITHIN SPECIAL ASSESSING UNITS AS
DEFINED IN SECTION EIGHTEEN HUNDRED ONE OF THIS CHAPTER, THE SCHOOL
DISTRICT TAX RATE TO BE USED FOR THIS PURPOSE SHALL BE THE TAX RATE
APPLICABLE TO CLASS ONE PROPERTIES AS DEFINED IN ARTICLE EIGHTEEN OF
THIS CHAPTER, AS REPORTED BY THE SCHOOL DISTRICT AND THE EXEMPT AMOUNT
SHALL BE ESTABLISHED FOR THE SEGMENT. IN THE CASE OF SCHOOL DISTRICTS
WITHIN APPROVED ASSESSING UNITS AS DEFINED IN SECTION NINETEEN HUNDRED
ONE OF THIS CHAPTER WHICH HAVE ADOPTED THE PROVISIONS OF SECTION NINE-
TEEN HUNDRED THREE OF THIS CHAPTER, THE SCHOOL DISTRICT TAX RATE TO BE
USED FOR THIS PURPOSE SHALL BE THE TAX RATE APPLICABLE TO THE HOMESTEAD
CLASS, AS DEFINED IN ARTICLE NINETEEN OF THIS CHAPTER, AS REPORTED BY
THE SCHOOL DISTRICT.
(F) WHERE THE PROVISIONS OF SUBPARAGRAPH (IV) OF PARAGRAPH (K) OF
SUBDIVISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER ARE
APPLICABLE, THE APPLICABLE REBATE AMOUNT SHALL BE ONE-THIRD OF THE
A. 7340--C 5
OTHERWISE APPLICABLE REBATE AMOUNT SET FORTH IN PARAGRAPH (B) OR (C) OF
THIS SUBDIVISION. THE STATE BOARD SHALL CALCULATE AND CERTIFY TO THE
DEPARTMENT OF TAXATION AND FINANCE THE REBATE AMOUNTS APPLICABLE IN SUCH
CASES, ALONG WITH THE CERTIFICATION REQUIRED BY PARAGRAPH (A) OF THIS
SUBDIVISION.
S 3. The education law is amended by adding a new section 101-b to
read as follows:
S 101-B. PAPERWORK REDUCTION. 1. IT SHALL BE THE DUTY OF THE COMMIS-
SIONER TO REDUCE THE PAPERWORK BURDEN ON SCHOOL DISTRICTS AND BOARDS OF
COOPERATIVE EDUCATIONAL SERVICES BY ELIMINATING AND AVOIDING DUPLICATIVE
REPORTING REQUIREMENTS WHEREVER POSSIBLE, AND BY CONSOLIDATING PLANS,
REPORTS AND APPLICATIONS, WHERE POSSIBLE, WHILE FOCUSING PLANNING AND
REPORTING ON RESULTS RATHER THAN THE PROCESSES TO ACHIEVE THEM. THE
COMMISSIONER SHALL CONFORM STATE REPORTING AND PLANNING REQUIREMENTS TO
FEDERAL REQUIREMENTS, WHERE POSSIBLE, AND SHALL SEEK FEDERAL WAIVERS
WHERE NEEDED TO ALIGN STATE AND FEDERAL REQUIREMENTS.
2. THE COMMISSIONER SHALL REDUCE THE NUMBER OF PLANS, REPORTS AND
APPLICATIONS REQUIRED BY LAW, OF SCHOOL DISTRICTS AND BOARDS OF COOPER-
ATIVE EDUCATIONAL SERVICES BY ESTABLISHING STREAMLINED AND UNIFIED ELEC-
TRONIC DATA COLLECTION SYSTEMS WHICH ELIMINATE REDUNDANT REPORTING,
CONNECT PLANNING AND REPORTING, AND WHICH FOCUS ON COLLECTING DATA AND
REQUIRING PLANNING ONLY WHEN NECESSARY TO ASSURE FISCAL AND PROGRAMMATIC
ACCOUNTABILITY, TO FOSTER CONTINUOUS SCHOOL IMPROVEMENT AND CLOSE THE
GAP BETWEEN ACTUAL AND DESIRED STUDENT ACHIEVEMENT, AND TO ASSURE
SCHOOLS PROVIDE A SAFE AND SECURE ENVIRONMENT AND/OR PROTECT THE HEALTH
AND SAFETY OF STUDENTS AND STAFF. SUCH SYSTEMS SHALL MATCH OVERSIGHT
WITH THE DEGREE OF RISK BY LINKING PLANNING AND REPORTING TO THE STATE
SYSTEM OF ACCOUNTABILITY REQUIRED UNDER FEDERAL LAW, PROVIDING FOR AN
AUDIT BASED ASSESSMENT OF RISK OF POOR STUDENT PERFORMANCE, POOR FISCAL
PERFORMANCE OR IMPROPER MANAGEMENT OR USE OF PUBLIC FUNDS. THE COMMIS-
SIONER SHALL ESTABLISH PARTNERSHIPS WITH SELECTED SCHOOL DISTRICTS AND
BOARDS OF COOPERATIVE EDUCATIONAL SERVICES TO PROMOTE BETTER USE OF
REQUIRED PLANNING AND REPORTING AND SHALL ASSURE THAT REPORTING REQUIRE-
MENTS INCLUDE DATA WHICH CAN BE USED TO IDENTIFY BEST PRACTICES. THE
COMMISSIONER SHALL PROVIDE FOR THE SHARING OF EFFECTIVE PLANNING PRAC-
TICES WITH SCHOOL DISTRICTS AND, TO THE EXTENT PRACTICABLE, SHALL
PROVIDE TECHNICAL ASSISTANCE ON THE USE OF DATA FOR PLANNING, INVOLVE
BOARDS OF COOPERATIVE EDUCATIONAL SERVICES AND INSTITUTIONS OF HIGHER
EDUCATION IN PROVIDING TRAINING ON THE USE OF DATA FOR STRATEGIC PLAN-
NING TO SUPERINTENDENTS OF SCHOOLS, SCHOOL BUSINESS OFFICIALS AND TEACH-
ERS, PROVIDE FOR TRAINING ON THE USE OF DATA IN PLANNING TO SCHOOL BOARD
MEMBERS AND INVOLVE RESEARCHERS IN DATA ANALYSIS AND EVALUATION.
S 4. Section 215-b of the education law, as amended by chapter 301 of
the laws of 1996, is amended to read as follows:
S 215-b. Annual report by commissioner to governor and legislature.
The commissioner shall prepare and submit to the governor, the president
pro tem of the senate and the speaker of the assembly not later than
January first, nineteen hundred ninety-six and by the first day of Janu-
ary in each year thereafter, a report detailing the financial and
statistical outcomes of boards of cooperative educational services which
shall[, at minimum,] set forth with respect to the preceding school
year[: tuition costs for selected programs; standard per pupil cost
information for selected services as determined by the commissioner; and
aggregate expenditure data for the following categories: administration,
instructional services, career education, special education, rent and
facilities and other services; and such other information as deemed
A. 7340--C 6
appropriate] INFORMATION NECESSARY TO ASSURE THE ACCOUNTABILITY OF
BOARDS OF COOPERATIVE EDUCATIONAL SERVICES FOR ITS FISCAL AND PROGRAM-
MATIC RESOURCES, AS SET FORTH IN REGULATIONS TO BE PRESCRIBED by the
commissioner. The format for such report shall be developed in consulta-
tion with school district officials and the director of the budget. Such
report will include changes from the year prior to the report year for
each such item for all boards of cooperative educational services. Such
report shall be distributed to all school districts and boards of coop-
erative educational services and shall be made available to all other
interested parties upon request.
S 5. Subdivision 32 of section 305 of the education law is REPEALED.
S 6. The education law is amended by adding a new section 308-a to
read as follows:
S 308-A. SPECIAL PROVISIONS; MANDATES. 1. AS USED IN THIS SECTION,
"MANDATE" MEANS (A) ANY STATE LAW, RULE OR REGULATION WHICH CREATES A
NEW PROGRAM OR REQUIRES A HIGHER LEVEL OF SERVICE FOR AN EXISTING
PROGRAM WHICH A SCHOOL DISTRICT, ORGANIZED EITHER BY SPECIAL LAWS OR
PURSUANT TO THE PROVISIONS OF A GENERAL LAW, IS REQUIRED TO PROVIDE, OR
(B) ANY GENERAL LAW WHICH GRANTS A NEW PROPERTY TAX EXEMPTION OR
INCREASES AN EXISTING PROPERTY TAX EXEMPTION WHICH ANY SUCH SCHOOL
DISTRICT IS REQUIRED TO PROVIDE.
2. IN THE EVENT THAT A MANDATE WHICH IMPOSES A COST UPON A SCHOOL
DISTRICT IS CREATED AFTER THE ADOPTION OF A SCHOOL BUDGET, SUCH MANDATE
SHALL NOT BE IMPLEMENTED UNTIL THE FOLLOWING YEAR FOR WHICH SUCH SCHOOL
BUDGET WAS ADOPTED.
3. NOTWITHSTANDING SUBDIVISION TWO OF THIS SECTION, SUCH A MANDATE CAN
BE IMPOSED IF:
(A) THE MANDATE IS PROVIDED AT THE OPTION OF THE SCHOOL DISTRICT UNDER
A LAW, REGULATION, RULE OR ORDER THAT IS PERMISSIVE RATHER THAN MANDATO-
RY;
(B) THE MANDATE IS REQUIRED BY, OR ARISES FROM, AN EXECUTIVE ORDER OF
THE GOVERNOR EXERCISING HIS OR HER EMERGENCY POWERS; OR
(C) THE MANDATE IS REQUIRED BY STATUTE OR EXECUTIVE ORDER THAT IMPLE-
MENTS A FEDERAL LAW OR REGULATION AND RESULTS FROM COSTS MANDATED BY THE
FEDERAL GOVERNMENT TO BE BORNE AT THE LOCAL LEVEL, UNLESS THE STATUTE OR
EXECUTIVE ORDER IMPOSES COSTS WHICH EXCEED THE COSTS MANDATED BY THE
FEDERAL GOVERNMENT.
4. THE OFFICE OF THE STATE COMPTROLLER SHALL MAKE A FISCAL ANALYSIS OF
THE AGGREGATE IMPACT OF NEW STATE LEGISLATION AND RULEMAKING ON LOCAL
GOVERNMENTS AND SCHOOL DISTRICTS AND SHALL MAKE SUCH INFORMATION AVAIL-
ABLE TO THE PUBLIC.
S 7. Subdivisions 1 and 3 of section 416 of the education law, subdi-
vision 1 as amended by chapter 687 of the laws of 1949 and subdivision 3
as amended by chapter 171 of the laws of 1996, are amended to read as
follows:
1. A majority of the voters of any school district, present and voting
at any annual or special district meeting, duly convened, may authorize
such acts and vote such taxes as they shall deem expedient for making
additions, alterations, repairs or improvements, to the sites or build-
ings belonging to the district, or for altering and equipping for
library use any former schoolhouse belonging to the district, or for the
purchase of other sites or buildings, or for a change of sites, or for
the purchase of land and buildings for agricultural, athletic, play-
ground or social center purposes, or for the erection of new buildings,
or for building a bus garage, or for [buying apparatus, implements, or
fixtures, or for paying the wages of teachers, and the necessary
A. 7340--C 7
expenses of the school, or for the purpose of paying any judgment, or
for] the payment or refunding of an outstanding bonded indebtedness[, or
for such other purpose relating to the support and welfare of the school
as they may, by resolution, approve].
3. No addition to or change of site or purchase of a new site or tax
for the purchase of any new site or structure, or for grading or improv-
ing a school site, or for the purchase of an addition to the site of any
schoolhouse, or for the purchase of lands and buildings for agricul-
tural, athletic, playground or social center purposes, or for building
any new schoolhouse or for the erection of an addition to any school-
house already built, or for the payment or refunding of an outstanding
bonded indebtedness, shall be voted at any such meeting in a union free
school district or a city school district [which conducts annual budget
votes in accordance with article forty-one of this chapter pursuant to
section twenty-six hundred one-a of this chapter] IN A CITY WITH LESS
THAN ONE HUNDRED TWENTY-FIVE THOUSAND INHABITANTS, unless a notice by
the board of education stating that such tax will be proposed, and spec-
ifying the object thereof and the amount to be expended therefor, shall
have been given in the manner provided herein for the notice of an annu-
al meeting. In a common school district the notice of a special meeting
to authorize any of the improvements enumerated in this section shall be
given as provided in section two thousand six. The board of education of
a union free school district or a city school district [which conducts
annual budget votes in accordance with article forty-one of this chapter
pursuant to section twenty-six hundred one-a of this chapter] IN A CITY
WITH LESS THAN ONE HUNDRED TWENTY-FIVE THOUSAND INHABITANTS, may deter-
mine that the vote upon any question to be submitted at a special meet-
ing as provided in this section shall be by ballot, in which case it
shall state in the notice of such special meeting the hours during which
the polls shall be kept open. Printed ballots may be prepared by the
board in advance of the meeting and the proposition or propositions
called for in the notice of the meeting may be submitted in substantial-
ly the same manner as propositions to be voted upon at a general
election.
S 8. Section 805 of the education law is REPEALED.
S 9. Subdivision 2 of section 806 of the education law, as amended by
chapter 946 of the laws of 1973, is amended to read as follows:
2. The regents shall determine the subjects to be included in such
courses of instruction in highway safety and traffic regulation includ-
ing bicycle safety, and the period of instruction in each of the grades
in such subjects. [They shall adopt rules providing for attendance upon
such instruction and for such other matters as are required for carrying
into effect the teaching of the courses of instruction prescribed by
this section. The commissioner of education shall be responsible for
the enforcement of such section and shall cause to be inspected and
supervise the instruction to be given in such subjects. The commissioner
may, in his discretion, cause all or a portion of the public school
money to be apportioned to a district or city to be withheld for failure
of the school authorities of such district or city to provide instruc-
tion in such courses and to compel attendance upon such instruction, as
herein prescribed, and for a noncompliance with the rules of the regents
adopted as herein provided.]
S 10. The education law is amended by adding a new section 1527-a to
read as follows:
A. 7340--C 8
S 1527-A. FUNDING OF MANDATES IMPOSED ON SCHOOL DISTRICTS. 1. DEFI-
NITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS UNLESS THE CONTEXT SHALL OTHERWISE REQUIRE:
(A) "MANDATE" MEANS:
(I) ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM OR
REQUIRES A HIGHER LEVEL OF SERVICE FOR AN EXISTING PROGRAM WHICH A
SCHOOL DISTRICT ORGANIZED EITHER BY SPECIAL LAWS OR PURSUANT TO THE
PROVISIONS OF A GENERAL LAW, IS REQUIRED TO PROVIDE; OR
(II) ANY GENERAL LAW WHICH GRANTS A NEW PROPERTY TAX EXEMPTION OR
INCREASES AN EXISTING PROPERTY TAX EXEMPTION WHICH ANY SUCH SCHOOL
DISTRICT IS REQUIRED TO PROVIDE.
(B) "UNFUNDED MANDATE" SHALL MEAN:
(I) ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM OR
REQUIRES A HIGHER LEVEL OF SERVICE FOR AN EXISTING PROGRAM WHICH ANY
SUCH SCHOOL DISTRICT IS REQUIRED TO PROVIDE AND WHICH RESULTS IN A NET
ADDITIONAL COST TO SUCH SCHOOL DISTRICT;
(II) ANY ALTERATION IN FUNDING PROVIDED TO ANY SUCH SCHOOL DISTRICT
FOR THE PURPOSE OF DEFRAYING THE COSTS OF A PROGRAM WHICH IT IS REQUIRED
TO PROVIDE, THEREBY RESULTING IN A NET ADDITIONAL COST TO SUCH SCHOOL
DISTRICT; OR
(III) ANY GENERAL LAW WHICH GRANTS A NEW PROPERTY TAX EXEMPTION OR
INCREASES AN EXISTING PROPERTY TAX EXEMPTION WHICH ANY SUCH SCHOOL
DISTRICT IS REQUIRED TO PROVIDE, THEREBY RESULTING IN A NET ADDITIONAL
COST TO SUCH SCHOOL DISTRICT.
(C) "NET ADDITIONAL COST" MEANS THE COST OR COSTS INCURRED OR ANTIC-
IPATED TO BE INCURRED WITHIN A ONE YEAR PERIOD BY A SCHOOL DISTRICT IN
PERFORMING OR ADMINISTERING A MANDATE AFTER SUBTRACTING THEREFROM ANY
REVENUES RECEIVED OR RECEIVABLE BY THE SCHOOL DISTRICT ON ACCOUNT OF THE
MANDATED PROGRAM OR SERVICE, INCLUDING BUT NOT LIMITED TO:
(I) FEES CHARGED TO THE RECIPIENTS OF THE MANDATED PROGRAM OR SERVICE;
(II) STATE OR FEDERAL AID PAID SPECIFICALLY OR CATEGORICALLY IN
CONNECTION WITH THE PROGRAM OR SERVICE; AND
(III) AN OFFSETTING SAVINGS RESULTING FROM THE DIMINUTION OR ELIMI-
NATION OF ANY OTHER PROGRAM OR SERVICE DIRECTLY ATTRIBUTABLE TO THE
PERFORMANCE OR ADMINISTRATION OF THE MANDATED PROGRAM.
2. FUNDING OF SCHOOL DISTRICT MANDATES. (A) NOTWITHSTANDING ANY OTHER
PROVISION OF LAW, NO UNFUNDED MANDATE SHALL BE ENACTED WHICH CREATES AN
ANNUAL NET ADDITIONAL COST TO ANY SCHOOL DISTRICT IN EXCESS OF TEN THOU-
SAND DOLLARS OR AN AGGREGATE ANNUAL NET ADDITIONAL COST TO ALL SCHOOL
DISTRICTS IN EXCESS OF ONE MILLION DOLLARS.
(B) THERE SHALL BE NO NEW LEGISLATIVE OR REGULATORY MANDATES IMPOSED
ON SCHOOL DISTRICTS WITHOUT A COMPLETE ACCOUNTING OF THE EXPECTED FISCAL
IMPACT ON SUCH SCHOOL DISTRICTS, AND SUCH ACCOUNTING MUST INCLUDE FULL
DOCUMENTATION, AN OPPORTUNITY FOR INPUT FROM AFFECTED SCHOOL DISTRICTS
AND PROPOSED REVENUE SOURCES WITH WHICH TO FUND THE NEW MANDATE.
3. EXEMPTIONS TO THE FUNDING OF SCHOOL DISTRICT MANDATES REQUIREMENT.
(A) THE STATE SHALL NOT BE REQUIRED TO FUND ANY NEW OR EXPANDED PROGRAMS
FOR SCHOOL DISTRICTS IF:
(I) THE MANDATE IS REQUIRED BY A COURT ORDER OR JUDGMENT;
(II) THE MANDATE IS PROVIDED AT THE OPTION OF THE SCHOOL DISTRICT
UNDER A LAW, REGULATION, RULE, OR ORDER THAT IS PERMISSIVE RATHER THAN
MANDATORY;
(III) THE MANDATE RESULTS FROM THE PASSAGE OF A HOME RULE MESSAGE
WHEREBY A SCHOOL DISTRICT REQUESTS AUTHORITY TO IMPLEMENT THE PROGRAM OR
SERVICE SPECIFIED IN THE STATUTE, AND THE STATUTE IMPOSES COSTS ONLY
A. 7340--C 9
UPON THAT SCHOOL DISTRICT WHICH REQUESTS THE AUTHORITY TO IMPOSE THE
PROGRAM OR SERVICE;
(IV) THE MANDATE IS REQUIRED BY, OR ARISES FROM, AN EXECUTIVE ORDER OF
THE GOVERNOR EXERCISING HIS OR HER EMERGENCY POWERS; OR
(V) THE MANDATE IS REQUIRED BY STATUTE OR EXECUTIVE ORDER THAT IMPLE-
MENTS A FEDERAL LAW OR REGULATION AND RESULTS FROM COSTS MANDATED BY THE
FEDERAL GOVERNMENT TO BE BORNE AT THE LOCAL LEVEL, UNLESS THE STATUTE OR
EXECUTIVE ORDER RESULTS IN COSTS WHICH EXCEED THE COSTS MANDATED BY THE
FEDERAL GOVERNMENT.
(B) EACH ACT ESTABLISHING A MANDATE SHALL PROVIDE THAT THE EFFECTIVE
DATE OF ANY SUCH MANDATE IMPOSED ON SCHOOL DISTRICTS SHALL BE CONSISTENT
WITH THE NEEDS OF THE STATE AND SCHOOL DISTRICTS TO PLAN IMPLEMENTATION
THEREOF, AND ALSO CONSISTENT WITH THE AVAILABILITY OF REQUIRED FUNDS.
S 11. Subparagraph 1 of paragraph b of subdivision 4 of section 1950
of the education law, as amended by chapter 474 of the laws of 1996, is
amended to read as follows:
(1) Prepare, prior to the annual meeting of members of the boards of
education and school trustees, held as provided in paragraph o of this
subdivision, a tentative budget of expenditures for the program costs, a
tentative budget for capital costs, and a tentative budget for the
administration costs of the board of cooperative educational services.
Such budgets shall include the proposed budget for the upcoming school
year, the previous school year's actual costs and the current school
year's projected costs for each object of expenditure. Such program,
capital and administrative budgets shall be separately delineated in
accordance with the definition of program, capital and administrative
costs which shall be promulgated by the commissioner after consultation
with school district officials and the director of the budget. Personal
service costs for each budget shall include the number of full-time
equivalent positions funded and total salary and, except as noted here-
in, fringe benefit costs for such positions by program. Each program
budget shall also include the local and statewide unit costs of such
programs and services proposed for the upcoming school year, such actual
unit costs for the previous school year, and the current school year's
projected unit costs, all established in accordance with paragraph d of
this subdivision. The capital budget shall include facility construction
and lease expenditures authorized pursuant to paragraphs p, t and u of
this subdivision, payments for the repayment of indebtedness related to
capital projects, payments for the acquisition or construction of facil-
ities, sites or additions, provided that such budget shall contain a
rental, operations and maintenance section that will include base rent
costs, total rent costs, operations and maintenance charges, cost per
square foot for each facility rented or leased by such board of cooper-
ative educational services, and any and all expenditures associated with
custodial salaries and benefits, service contracts, supplies, utilities,
maintenance and repairs for such facilities, and that such budget shall
include the annual debt service and total debt for all facilities
financed by bonds or notes of the component districts, annual rental and
lease payments and total rental and lease costs for all facilities rent-
ed by such board; such capital budget shall also include expenditures
resulting from court judgments and orders from administrative bodies or
officers, and, to the extent a board's administrative budget has been
adopted, one-time costs incurred in the first year in which an employee
retires. The administrative budget shall include, but need not be limit-
ed to, office and central administrative expenses, traveling expenses
and salaries and benefits of supervisors and administrative personnel
A. 7340--C 10
necessary to carry out the central administrative duties of the supervi-
sory district, any and all expenditures associated with the board, the
office of district superintendent, general administration, central
support services, planning, and all other administrative activities.
Such administrative budget shall also specify the amount of supplementa-
ry salary and benefits, if any, which the board determines should be
paid to the district superintendent of schools and the board shall
append to such budget a detailed statement of the total compensation to
be paid the district superintendent of schools by the board, including a
delineation of the salary, annualized cost of benefits and any in-kind
or other form of remuneration to be paid, plus, commencing with the
presentation of the budget for the nineteen hundred ninety-seven--nine-
ty-eight school year, [a list of items of expense eligible for
reimbursement on expense accounts in the ensuing school year and] a
statement of the amount of expenses paid to the district superintendent
of schools in the prior year for purposes of carrying out his or her
official duties.
S 12. Subparagraph 5 of paragraph b of subdivision 4 of section 1950
of the education law, as amended by chapter 602 of the laws of 1994, is
amended to read as follows:
(5) The trustees or board of education of each component school
district of the board of cooperative educational services shall adopt a
public resolution which shall approve or disapprove such tentative
administrative budget at a regular or special meeting to be held within
the component district on the date designated pursuant to subdivision
two-a of this section as the date for election of members of the board
of cooperative educational services, or in the case of the board of
education of a central high school district on the regular business day
next following such designated date.
If the resolutions adopted by the trustees or boards of education of a
majority of the component school districts of the board of cooperative
educational services actually voting approve the tentative administra-
tive budget, the board of cooperative educational services may adopt the
tentative administrative budget without modification. If a majority of
the component school districts actually voting fail to adopt resolutions
approving such tentative administrative budget, or if the number of
component school districts approving the budget equals the number of
school districts disapproving the budget, the board of cooperative
educational services shall prepare and adopt a contingency administra-
tive budget which shall not exceed the amount of the administrative
budget of the board of cooperative educational services for the previous
school year except to accommodate expenditure increases attributable to
supplemental retirement allowances payable pursuant to section five
hundred thirty-two of this chapter and section seventy-eight of the
retirement and social security law. [For purposes of development of a
budget for the nineteen hundred ninety-four--ninety-five school year,
each board of cooperative educational services shall separate its
program, capital and administrative costs for the nineteen hundred nine-
ty-three--ninety-four school year in the manner prescribed by the
commissioner, and] THE BOARD OF COOPERATIVE EDUCATIONAL SERVICES shall
NOT BE REQUIRED TO submit [the resulting] ITS separate administrative
budget to the commissioner for approval. [Upon approval of the commis-
sioner, such separate administrative budget shall be deemed the adminis-
trative budget of the board of cooperative educational services for the
nineteen hundred ninety-three--ninety-four school year.]
A. 7340--C 11
S 13. Paragraph c of subdivision 4 of section 1950 of the education
law, as amended by chapter 301 of the laws of 1996, is amended to read
as follows:
c. Make or cause to be made surveys to determine the need for cooper-
ative educational services in the supervisory district and present the
findings of their surveys to local school authorities. Each board of
cooperative educational services shall prepare long range program plans
to meet the projected need for such cooperative educational services in
the supervisory district for the next five years as may be specified by
the commissioner, and shall [submit] KEEP ON FILE AND AVAILABLE FOR
PUBLIC INSPECTION AND REVIEW BY THE COMMISSIONER such plans and there-
after annual revisions of such plans [to the commissioner] on or before
the first day of December of each year, [except that special education
and career education program plans, in a form specified by the commis-
sioner, shall be submitted every two years, no later than the date spec-
ified by the commissioner, and revised annually] PROVIDED THAT SUCH
PLANS MAY BE INCORPORATED INTO A BOARD OF COOPERATIVE EDUCATIONAL
SERVICES DISTRICT-WIDE COMPREHENSIVE PLAN.
S 14. Subparagraph 2-a of paragraph d of subdivision 4 of section 1950
of the education law is REPEALED.
S 15. Subparagraphs 3 and 4 of paragraph d of subdivision 4 of section
1950 of the education law, as amended by chapter 474 of the laws of
1996, are amended to read as follows:
(3) Requests for shared services; operating plan; required notice.
Requests for such shared services shall be filed by component school
districts with the board of cooperative educational services not later
than the first day of February of each year, provided that such requests
shall not be binding upon the component school district. The board of
cooperative educational services shall submit its proposed annual oper-
ating plan for the ensuing school year to the department for approval
not later than the fifteenth day of February of each year. Such board
shall, through its executive officer, notify each component school
district on or before the tenth day of March concerning the services
[which] THAT have been approved by the commissioner to be made available
for the ensuing school year. Such notice shall set forth the local
uniform cost of each such service, based on (i) anticipated partic-
ipation in the ensuing school year, or (ii) participation in the current
year, or (iii) a two or three year average including participation in
the current year, which unit cost shall be the same for all participat-
ing component districts and shall be based upon a uniform methodology
approved annually by at least three-quarters of the participating compo-
nent school districts after consultation by local school officials with
their respective boards[; provided, however, such unit cost shall be
subject to final adjustment for programs for students with disabilities
based on actual participation in accordance with regulations of the
commissioner. Notwithstanding the determination of the local uniform
unit cost methodology selected in accordance with this paragraph, each
board of cooperative education services shall annually report to the
commissioner the budgeted unit cost and, when available, the actual unit
cost of such programs and services, in accordance with both the local
uniform unit cost methodology and a statewide uniform unit cost method-
ology prescribed by the commissioner by regulation, where the budgeted
statewide unit cost shall be based on the anticipated participation in
the ensuing year and the actual statewide unit cost shall be based on
actual participation through the end of each year].
A. 7340--C 12
(4) Contracts for shared services; allocation of costs. Each component
school district shall on or before the first day of May following such
notification notify the board of cooperative educational services of its
intention to participate or not to participate in such shared services
and the specific services which such district elects to utilize. Each
participating component school district shall be required to pay the
board of cooperative educational services for the cost of the services
set forth in such notification, except for adjustments caused by subse-
quent unanticipated changes in the district's enrollment. The board of
cooperative educational services shall enter into contracts with its
component school districts for such requested services. A copy of each
executed contract for such purpose shall be [filed with the commissioner
by] ON FILE WITH the board of cooperative educational services AND
AVAILABLE FOR PUBLIC INSPECTION UPON REQUEST on or prior to the first
day of August of each year. Notwithstanding the provisions of paragraph
b of this subdivision, any component school district which does not
elect to participate in any such specific cooperative services author-
ized under this paragraph shall not be required to pay any share of the
moneys provided in the budget as salaries of teachers or other personnel
employed in providing such service, for equipment and supplies for such
service or for transportation of pupils to and from the place where such
service is maintained. Provided, further, that a board of cooperative
educational services may allocate the cost of such services to component
school districts in accordance with terms agreed upon between such board
and three-quarters of the boards of education and trustees of local
school districts participating in the service.
S 16. Paragraph aa of subdivision 4 of section 1950 of the education
law, as added by chapter 595 of the laws of 1978, is amended to read as
follows:
aa. Notwithstanding any other provision of law, a board of cooperative
educational services may[, with the prior written approval of the
commissioner,] contract to accept from a leasing company which has qual-
ified as lowest bidder pursuant to the provisions of the general munici-
pal law a sum sufficient to purchase data processing equipment from the
manufacturer thereof, pay such sum to the manufacturer of said equip-
ment, receive the equipment and title thereto and convey the same to the
leasing company with a simultaneous lease of the equipment from such
leasing company to the board of cooperative educational services for a
specified period of years. Before any such agreement shall be executed,
the board of cooperative educational services shall adopt a resolution
determining that such agreement is in the best financial interest of the
board. Such lease may be renewed for a further specified period of years
[with the prior approval of the commissioner of education].
S 17. Paragraph kk of subdivision 4 of section 1950 of the education
law, as added by section 13 of part A of chapter 436 of the laws of
1997, is amended to read as follows:
kk. For the nineteen hundred ninety-seven--ninety-eight school year
and thereafter, the board of cooperative educational services (BOCES)
shall prepare a BOCES 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 administrative 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 board of
cooperative educational services, on a school by school or program by
A. 7340--C 13
program basis, and measures of the fiscal performance of the supervisory
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 boards of cooperative educational services.
Such report card shall include[, at a minimum, any information of the
board of cooperative educational services 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.
S 18. Subdivision 2 of section 2201 of the education law, as amended
by chapter 295 of the laws of 1993, is amended to read as follows:
2. Whenever a vacancy hereafter occurs in the office of district
superintendent of schools in any supervisory district or whenever the
commissioner receives a letter of resignation from a district super-
intendent, the commissioner [shall] MAY survey the field in the county
where the vacancy occurred, and if it shall find that the continuance of
the number of supervisory districts then existing is no longer necessary
to serve adequately the educational interests of the county he or she
shall be authorized to conduct a study to examine the possible reorgan-
ization of such supervisory district if no such study has been conducted
within five years.
S 19. Subdivision 5 of section 2802 of the education law, as added by
chapter 181 of the laws of 2000, is amended to read as follows:
5. By [January] APRIL first of each year, the commissioner shall
report to the governor, the legislature and the regents concerning the
prevalence of violence and disruptive incidents in the public schools[,
and the effectiveness of school programs undertaken to reduce violence
and assure the safety and security of students and school personnel].
The report shall summarize the information available from the incident
reporting system, and [identify specifically the schools and school
districts with the least and greatest incidence of violent and disrup-
tive incidents, and the least and most improvement since the previous
year or years] COMPARE THE INCIDENCE OF VIOLENT AND DISRUPTIVE INCIDENTS
OF SCHOOLS AND SCHOOL DISTRICTS AND BOARDS WITH OTHER SCHOOLS AND SCHOOL
DISTRICTS AND BOARDS BASED ON SIMILARITY IN SIZE AND GRADE LEVELS AND
OTHER CHARACTERISTICS, INCLUDING STUDENT NEED AND RESOURCES, AS DETER-
MINED BY THE COMMISSIONER. [The report shall also, to the extent possi-
ble, relate the results available from the incident reporting system,
together with such other analysis and information as the commissioner
determines is appropriate, to the effectiveness of school violence meas-
ures undertaken by participating schools and school districts, including
the school codes and school safety plans required by sections twenty-
eight hundred one and twenty-eight hundred one-a of this article.]
S 20. Paragraph b of subdivision 8 of section 3602 of the education
law, as amended by section 16 of part B of chapter 57 of the laws of
2007, is amended to read as follows:
b. District plans of service. Any school district receiving an addi-
tional apportionment pursuant to subdivision ten of this section for
pupils in career education programs or a payment in lieu of such appor-
tionment or having a public excess cost aid setaside pursuant to subdi-
vision four of this section shall keep on file and make available for
public inspection and review by the commissioner an acceptable plan of
service describing the student outcomes expected from implementation of
the proposed plan, provided that such plan may be incorporated into a
school district's district-wide comprehensive plan. The plan of service
A. 7340--C 14
[submitted by] OF a school district receiving an additional apportion-
ment pursuant to this section for pupils with disabilities shall also
describe how such district intends to ensure that all instructional
materials to be used in the schools of such district will be made avail-
able in a usable alternative format for each student with a disability
and for each student who is a qualified individual with a disability, at
the same time as such instructional materials are available to non-disa-
bled students, provided that such plan may incorporate by reference the
alternative format plans developed pursuant to subdivision twenty-nine-a
of section sixteen hundred four, subdivision four-a of section seventeen
hundred nine, subdivision seven-a of section twenty-five hundred three
or subdivision seven-a of section twenty-five hundred fifty-four of this
chapter. Such plans shall be in a form prescribed by the commissioner,
and except as heretofore provided, shall have the content prescribed by
the commissioner. The commissioner may, from time to time, require
amendments of such plans as deemed to be necessary and appropriate to
further the educational welfare of the pupils involved.
S 21. Paragraph f of subdivision 11 of section 3602 of the education
law, as added by chapter 82 of the laws of 1995 and such subdivision as
renumbered by section 15 of part B of chapter 57 of the laws of 2007, is
amended to read as follows:
f. Approved plan of service and program evaluation. All school
districts and BOCES desiring to operate an aidable program pursuant to
this subdivision shall complete [a comprehensive plan of service] AN
application, including a budget by program component[, together with an
evaluation of the effectiveness of program components offered during the
most recent July first through March thirtieth, if any]. Such [evalu-
ation and plan] APPLICATION shall be in a form prescribed by the commis-
sioner and shall be submitted not later than [forty-five days after the
provisions of this paragraph shall have become law, and not later than]
May fifteenth in [subsequent] EACH school [years] YEAR. Within forty-
five days of such deadline, and upon evaluation of such applications,
the commissioner shall notify school districts and BOCES of those
portions of such [plan of service] APPLICATION that will be aidable in
the school year ahead after making a determination that approval of such
[programs] APPLICATION will assure maximum effectiveness, geographic
availability and lack of duplication of such programs, support for
educational initiatives, and compliance with required program and fiscal
reporting requirements. No aid shall be payable pursuant to this subdi-
vision unless the [program] APPLICATION is approved by the commissioner.
S 22. Paragraph d of subdivision 26-a of section 3602 of the education
law is REPEALED.
S 23. Subdivision 13 of section 3602-e of the education law is
REPEALED.
S 24. Section 3635 of the education law is amended by adding a new
subdivision 8 to read as follows:
8. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR REGULATION, IN
SCHOOL DISTRICTS HAVING AN AREA OF FORTY SQUARE MILES OR LESS, IF THE
BOARD OF EDUCATION DETERMINES, BASED UPON HISTORY AND EXPERIENCE, THAT
THERE IS A CONSISTENT PATTERN OF ELIGIBLE PUPILS NOT USING THE TRANSPOR-
TATION PROVIDED BY THE DISTRICT, THE BOARD, IN ITS DISCRETION, MAY ENACT
A POLICY TO PROVIDE STUDENT TRANSPORTATION BASED UPON PATTERNS OF ACTUAL
RIDERSHIP WITHOUT REGARD TO: A. THE NUMBER OF STUDENTS ELIGIBLE FOR
TRANSPORTATION; AND B. THE NUMBER OF SEATS THAT WOULD OTHERWISE BE
REQUIRED FOR THEM UNDER PARAGRAPH A OF SUBDIVISION ONE OF THIS SECTION.
A. 7340--C 15
S 25. The tax law is amended by adding a new section 178 to read as
follows:
S 178. "MIDDLE CLASS STAR" REBATE PROGRAM. 1. THE COMMISSIONER SHALL
ISSUE THE LOCAL PROPERTY TAX REBATES AUTHORIZED BY SECTION THIRTEEN
HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW. FOR PURPOSES OF THIS SECTION
THE REBATE SHALL BE CALCULATED USING THE COMPUTATION FORMULA SET FORTH
IN SUBDIVISION THREE OF SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROP-
ERTY TAX LAW.
2. ON OR BEFORE AUGUST FIFTEENTH, TWO THOUSAND NINE AND EACH YEAR
THEREAFTER, THE EXECUTIVE DIRECTOR OF THE OFFICE OF REAL PROPERTY
SERVICES, OR HIS OR HER DESIGNEE, OR ON OR BEFORE JULY FIRST, TWO THOU-
SAND NINE AND EACH YEAR THEREAFTER IN THE CASE OF A CITY WITH A POPU-
LATION OF ONE MILLION OR MORE, THE COMMISSIONER OF FINANCE, SHALL
PROVIDE TO THE COMMISSIONER A REPORT IN A MUTUALLY AGREEABLE FORMAT
CONCERNING THOSE PARCELS WHICH SATISFY THE CRITERIA SET FORTH IN SECTION
THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW.
3. THE COMMISSIONER IN CONSULTATION WITH THE OFFICE OF REAL PROPERTY
SERVICES AND IN THE CASE OF A CITY WITH A POPULATION OF ONE MILLION OR
MORE, THE COMMISSIONER OF FINANCE, IS AUTHORIZED TO DEVELOP PROCEDURES
NECESSARY TO PROVIDE FOR THE ISSUANCE OF LOCAL PROPERTY TAX REBATES TO
QUALIFYING PROPERTY OWNERS, AND THOSE QUALIFYING PROPERTY OWNERS THAT
DID NOT RECEIVE THEM INITIALLY. IF THE COMMISSIONER IS NOT SATISFIED
THAT THE PROPERTY OWNER IS QUALIFIED FOR THE LOCAL PROPERTY TAX REBATE,
THE COMMISSIONER SHALL NOT ISSUE SUCH REBATE.
4. WHEN THE PROPER PAYMENT OF A TAX REBATE UNDER THIS SECTION DEPENDS
UPON CONSTRUCTION OF THE MEANING OF THE PROVISIONS OF SECTION THIRTEEN
HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW (AND ANY RELATED PROVISIONS
OF SUCH LAW) OR INTERPRETATION OF THE TERMS CONTAINED THEREIN, IT SHALL
BE THE RESPONSIBILITY OF THE STATE BOARD OF REAL PROPERTY SERVICES TO
PROVIDE TO THE DEPARTMENT THE CONSTRUCTION OR INTERPRETATION OF ANY SUCH
PROVISIONS OR TERMS.
5. BY DEPOSITING A REBATE ISSUED PURSUANT TO THIS SECTION AND AUTHOR-
IZED BY SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW, THE
PAYEE IS CERTIFYING THAT HE OR SHE IS THE PROPERTY OWNER, AND THAT THE
PRIMARY RESIDENCE OF SUCH PROPERTY OWNER IS NOT SUBJECT TO ANY DELIN-
QUENT SCHOOL TAXES.
6. VERIFICATION OF "AFFILIATED INCOME" FOR "MIDDLE CLASS STAR" REBATE
PROGRAM. (A) GENERALLY. THE DETERMINATION OF THE "AFFILIATED INCOME" OF
PARCELS FOR PURPOSES OF THE "MIDDLE CLASS STAR" REBATE PROGRAM AS
AUTHORIZED BY SUBDIVISION THREE OF SECTION THIRTEEN HUNDRED SIX-B OF THE
REAL PROPERTY TAX LAW SHALL BE MADE AS PROVIDED BY THIS SECTION.
(B) FOR PURPOSES OF THIS SUBDIVISION, THE TERM "INCOME" SHALL HAVE THE
SAME MEANING AS SET FORTH IN SUBPARAGRAPH (II) OF PARAGRAPH (B) OF
SUBDIVISION FOUR OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPER-
TY TAX LAW. THE TERM "AFFILIATED INCOME" SHALL MEAN THE COMBINED INCOME
OF ALL OF THE OWNERS OF THE PARCEL WHO RESIDED PRIMARILY THEREON ON THE
TAXABLE STATUS DATE FOR THE ASSESSMENT ROLL USED TO GENERATE THE APPLI-
CABLE SCHOOL TAX BILLS, AND OF ANY OWNERS' SPOUSES FILING JOINTLY OR
SPOUSES' RESIDING PRIMARILY THEREON IN THE CASES OF SPOUSES' FILING
SEPARATE RETURNS ON SUCH TAXABLE STATUS DATE AND SHALL BE DETERMINED AS
FOLLOWS:
(I) FOR THE TWO THOUSAND NINE--TWO THOUSAND TEN SCHOOL YEAR, AFFIL-
IATED INCOME SHALL BE DETERMINED BASED UPON THE PARTIES' INCOMES FOR THE
INCOME TAX YEAR ENDING IN TWO THOUSAND SEVEN. IN EACH SUBSEQUENT YEAR,
THE APPLICABLE INCOME TAX YEAR SHALL BE ADVANCED BY ONE YEAR.
A. 7340--C 16
(II) THE DEPARTMENT SHALL DETERMINE THE AFFILIATED INCOME FOR EACH
PARCEL AND SHALL ASSIGN A REBATE AMOUNT FOR EACH PARCEL BASED UPON SUCH
DETERMINATION. IN ANY CASE WHERE AFFILIATED INCOME CANNOT BE DETERMINED,
A REBATE SHALL NOT BE ISSUED.
7. NOTIFICATION REQUIREMENT. THE DEPARTMENT SHALL MAIL INFORMATION
CONCERNING THE "MIDDLE CLASS STAR" REBATE PROGRAM TO OWNERS OF PARCELS
RECEIVING A BASIC STAR EXEMPTION ON THE ASSESSMENT ROLL USED TO GENERATE
THE TWO THOUSAND NINE--TWO THOUSAND TEN SCHOOL TAX BILL. SUCH NOTIFICA-
TION SHALL EXPLAIN THAT PROPERTY OWNERS MUST FILE APPLICATIONS WITH THE
DEPARTMENT IN ORDER TO OBTAIN THE REBATE AVAILABLE UNDER THE "MIDDLE
CLASS STAR" REBATE PROGRAM. SUCH NOTICE SHALL FURTHER EXPLAIN HOW TO
OBTAIN THE APPLICATION.
8. APPLICATIONS. (A) IN ORDER TO OBTAIN THE BENEFITS OF THE "MIDDLE
CLASS STAR" REBATE PROGRAM, THE PROPERTY OWNER MUST SUBMIT AN APPLICA-
TION TO THE DEPARTMENT NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND
NINE. THE APPLICANT SHALL PROVIDE THE DEPARTMENT WITH SUCH INFORMATION
AS MAY BE NECESSARY TO DETERMINE THE PARCEL'S AFFILIATED INCOME. THE
PERSONS OTHER THAN THE APPLICANT WHOSE INCOMES ARE NECESSARY TO THE
DETERMINATION OF THE PARCEL'S AFFILIATED INCOME SHALL BE REFERRED TO IN
THIS SECTION AS "AFFILIATED PERSONS." RECIPIENTS OF THE ENHANCED STAR
EXEMPTION SHALL NOT FILE AN APPLICATION TO RECEIVE A REBATE. THE DEPART-
MENT SHALL MAIL ENHANCED STAR REBATE RECIPIENTS THEIR REBATES IN A TIME-
LY MANNER.
(B) IF THE APPLICANT OR ANY AFFILIATED PERSONS WERE NOT REQUIRED TO
FILE NEW YORK STATE INCOME TAX RETURNS FOR THE TWO THOUSAND SEVEN INCOME
TAX YEAR BECAUSE THEIR INCOMES WERE BELOW THE THRESHOLD THAT NECESSI-
TATED SUCH FILING, THE APPLICATION SHALL SO INDICATE.
(C) IF THE APPLICANT OR ANY AFFILIATED PERSONS WERE NOT REQUIRED TO
FILE NEW YORK STATE INCOME TAX RETURNS FOR THE TWO THOUSAND SEVEN INCOME
TAX YEAR BECAUSE THEY DID NOT RESIDE IN NEW YORK STATE IN SUCH TAXABLE
YEAR, THE APPLICATION SHALL SO INDICATE. SUCH PERSONS SHALL PROVIDE WITH
THE APPLICATION ANY INFORMATION THAT THE DEPARTMENT DETERMINES IS NECES-
SARY TO CALCULATE THE PARCEL'S AFFILIATED INCOME UNDER THE "MIDDLE CLASS
STAR" REBATE PROGRAM.
(D) AFTER TWO THOUSAND NINE, APPLICATIONS SHALL BE REQUIRED ONLY WHEN
A NEW APPLICATION FOR A BASIC STAR EXEMPTION FOR REAL PROPERTY TAXATION
IS FILED PURSUANT TO SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROP-
ERTY TAX LAW, OR WHEN THERE IS A CHANGE OF OWNERSHIP WHICH DOES NOT
NECESSITATE THE FILING OF A NEW APPLICATION FOR A BASIC STAR EXEMPTION.
IN EITHER INSTANCE, AN APPLICATION SHALL BE SUBMITTED TO THE DEPARTMENT
ON A TIMELY BASIS.
(E) IF AN APPLICATION FOR A "MIDDLE CLASS STAR" REBATE IS RECEIVED
AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND NINE, AN OTHERWISE ELIGIBLE
PROPERTY OWNER SHALL NOT RECEIVE A REBATE FOR SUCH YEAR. HOWEVER, SUCH
APPLICATION SHALL BE CONSIDERED TIMELY FILED FOR A REBATE IN SUBSEQUENT
YEARS PROVIDED THE OWNERSHIP OF THE PARCEL REMAINS UNCHANGED.
9. PROCESSING OF APPLICATIONS. (A) AFTER RECEIVING A TIMELY APPLICA-
TION, THE DEPARTMENT SHALL ATTEMPT TO DETERMINE THE AFFILIATED INCOME OF
THE PARCEL AND THE REBATE AMOUNT TO WHICH THE PARCEL IS ENTITLED, IF
ANY.
(B) IN THE CASE OF AN APPLICATION WHICH INDICATES THAT THE APPLICANT
AND ANY AFFILIATED PERSONS WERE NOT REQUIRED TO FILE NEW YORK STATE
INCOME TAX RETURNS FOR THE TWO THOUSAND SEVEN INCOME TAX YEAR BECAUSE
THEIR INCOMES WERE BELOW THE THRESHOLD WHICH NECESSITATED THE FILING OF
A STATE INCOME TAX RETURN, THE DEPARTMENT MAY, SUBJECT TO AUDIT, ISSUE A
A. 7340--C 17
REBATE EQUAL TO THE HIGHEST AMOUNT AVAILABLE FOR THAT SCHOOL DISTRICT
SEGMENT.
(C) IN THE CASE OF AN APPLICATION WHICH INDICATES THAT THE APPLICANT
AND ANY AFFILIATED PERSONS WERE NOT REQUIRED TO FILE NEW YORK STATE
INCOME TAX RETURNS FOR THE TWO THOUSAND SEVEN INCOME TAX YEAR BECAUSE
THEY DID NOT RESIDE IN NEW YORK STATE IN SUCH TAXABLE YEAR, THE APPLI-
CANT SHALL PROVIDE SUCH INFORMATION REGARDING INCOME AS IS REQUESTED BY
THE DEPARTMENT. THE DEPARTMENT SHALL ISSUE A REBATE BASED UPON THE
INFORMATION PROVIDED BY THE APPLICANT AND ANY OTHER INFORMATION TO WHICH
THE DEPARTMENT MAY HAVE ACCESS CONCERNING THE INCOME OF SUCH PERSON OR
PERSONS.
10. RECONSIDERATION OF REBATE AMOUNT. IN THE EVENT THE DEPARTMENT IS
UNABLE TO DETERMINE THE AFFILIATED INCOME FOR A PARCEL OR THE DEPARTMENT
DETERMINES THAT A REBATE SHALL NOT BE ISSUED FOR A PARCEL, THE DEPART-
MENT SHALL NOTIFY THE APPLICANT OF THAT FACT. A PROPERTY OWNER MAY SEEK
RECONSIDERATION OF THE REBATE AMOUNT DETERMINATION FOR HIS OR HER PARCEL
ON THE GROUNDS THAT THE PARCEL'S AFFILIATED INCOME WAS DETERMINED ERRO-
NEOUSLY. A PROPERTY OWNER MAY ALSO SEEK RECONSIDERATION IF NO REBATE WAS
ISSUED BECAUSE THE PARCEL'S AFFILIATED INCOME WAS UNDETERMINED. AN
APPLICATION FOR RECONSIDERATION OF REBATE AMOUNT SHALL BE MADE IN A
MANNER PRESCRIBED BY THE DEPARTMENT, AND SHALL BE ACCOMPANIED BY SUCH
DOCUMENTATION AS THE DEPARTMENT MAY REQUIRE. SUCH APPLICATION SHALL BE
FILED NO LATER THAN MARCH THIRTY-FIRST, TWO THOUSAND TEN. IF THE DEPART-
MENT FINDS AFTER REVIEWING SUCH AN APPLICATION THAT THE REBATE AMOUNT
DETERMINATION FOR A PARCEL SHOULD BE CORRECTED, IT SHALL ISSUE AN
AMENDED OR INITIAL REBATE CHECK. IF THE DEPARTMENT FINDS AFTER REVIEWING
SUCH AN APPLICATION THAT THE REBATE AMOUNT DETERMINATION FOR THE PARCEL
WAS CORRECTLY DETERMINED, IT SHALL SO NOTIFY THE APPLICANT. SUCH NOTIFI-
CATION SHALL INCLUDE AN EXPLANATION OF THE DEPARTMENT'S FINDINGS, INDI-
CATE THAT THE APPLICANT HAS THE RIGHT TO A PROCEEDING UNDER ARTICLE
SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES, AND INDICATE THE
STATUTE OF LIMITATIONS ASSOCIATED WITH SUCH PROCEEDINGS. SUCH FINDING
SHALL BE SUBJECT TO REVIEW PURSUANT ONLY TO A PROCEEDING UNDER ARTICLE
SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES.
11. SPECIAL PROVISIONS RELATING TO CO-OPERATIVE APARTMENT UNITS AND
MOBILE HOMES. THE DEPARTMENT'S DETERMINATION OF AFFILIATED INCOME SHALL
BE MADE WITH RESPECT TO THE TENANT-SHAREHOLDERS OR OWNERS OF THE UNIT IN
QUESTION RATHER THAN OF THE PARCEL.
12. SUBSEQUENT YEARS. IN EACH YEAR SUBSEQUENT TO TWO THOUSAND NINE,
AFFILIATED INCOMES SHALL CONTINUE TO BE DETERMINED AS PROVIDED BY THIS
SECTION FOR PURPOSES OF THE "MIDDLE CLASS STAR" REBATE PROGRAM, EXCEPT
THAT:
(A) THE NOTIFICATION REQUIREMENT OF SUBDIVISION SEVEN OF THIS SECTION
SHALL NOT BE APPLICABLE;
(B) APPLICATIONS SHALL BE REQUIRED ONLY AS PROVIDED IN SUBDIVISION
EIGHT OF THIS SECTION; AND
(C) IN EACH SUBSEQUENT YEAR, THE APPLICABLE INCOME TAX YEAR FOR DETER-
MINATIONS UNDER THIS SECTION SHALL BE ADVANCED ONE YEAR. ALL OTHER
APPLICABLE DATES AND DEADLINES WHICH REFERENCE A DATE IN TWO THOUSAND
NINE SHALL BE ADVANCED AND SHALL BE DEEMED TO REFERENCE DATES IN THAT
SUBSEQUENT YEAR, EXCEPT THAT APPLICATIONS FOR RECONSIDERATION OF REBATE
AMOUNT DETERMINATIONS SHALL BE SUBMITTED NO LATER THAN MARCH
THIRTY-FIRST OF THE ENSUING YEAR.
13. CONFIDENTIAL INFORMATION; DISCLOSURE PROHIBITION. INFORMATION
REGARDING REBATES ISSUED TO INDIVIDUALS SHALL NOT BE SUBJECT TO DISCLO-
SURE; INCLUDING NAMES, ADDRESSES, AND DOLLAR AMOUNTS OF REBATES. IN
A. 7340--C 18
ADDITION, ALL APPLICATIONS SUBMITTED FOR REBATES SHALL NOT BE SUBJECT TO
DISCLOSURE.
14. DEADLINE. IF ANY APPLICABLE DEADLINE SHALL FALL ON A SATURDAY,
SUNDAY OR LEGAL HOLIDAY, SUCH DEADLINE SHALL BE ADVANCED TO THE NEXT
BUSINESS DAY.
15. AFFILIATED INCOME BRACKETS; INDEXING. THE DEPARTMENT SHALL ESTAB-
LISH THE AFFILIATED INCOME BRACKETS TO BE ASSOCIATED WITH THE REBATE
AMOUNTS FOR THE TWO THOUSAND TWELVE--TWO THOUSAND THIRTEEN SCHOOL YEAR
AND EACH SCHOOL YEAR THEREAFTER BY APPLYING THE INFLATION FACTOR SET
FORTH IN THIS SUBDIVISION TO THE FIGURES THAT DEFINED THE INCOME BRACK-
ETS THAT WERE APPLICABLE TO THE TWO THOUSAND ELEVEN--TWO THOUSAND TWELVE
SCHOOL YEAR, AND ROUNDING EACH RESULT TO THE NEAREST MULTIPLE OF ONE
HUNDRED DOLLARS. FOR PURPOSES OF THIS SUBDIVISION, THE "INFLATION
FACTOR" FOR EACH INCOME BRACKET SHALL BE DETERMINED BY THE PERCENTAGE
INCREASE IN THE CONSUMER PRICE INDEX FOR URBAN WAGE EARNERS AND CLERICAL
WORKERS (CPI-W) PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR,
BUREAU OF LABOR STATISTICS, FOR THE THIRD QUARTER OF THE CALENDAR YEAR
PRECEDING THE APPLICABLE SCHOOL YEAR, AS COMPARED TO THE THIRD QUARTER
OF THE PRIOR CALENDAR YEAR. IF A BASE FIGURE AS SO DETERMINED IS NOT
EXACTLY EQUAL TO A MULTIPLE OF ONE HUNDRED DOLLARS, IT SHALL BE ROUNDED
TO THE NEAREST MULTIPLE OF ONE HUNDRED DOLLARS. IN EACH SUBSEQUENT
SCHOOL YEAR, THE PRIOR YEAR'S INCOME BRACKETS SHALL BE INDEXED USING THE
ABOVE FORMULA WITH EACH YEAR ADVANCED BY ONE YEAR.
16. BEGINNING IN FISCAL YEAR TWO THOUSAND TEN--TWO THOUSAND ELEVEN,
THE DEPARTMENT SHALL DETERMINE WHICH PROGRAM PROVIDES A LARGER BENEFIT
TO A TAXPAYER, THE "MIDDLE CLASS STAR" REBATE PROGRAM IMPLEMENTED BY
SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW OR THE MAXI-
MUM RESIDENTIAL SCHOOL TAX CREDIT AUTHORIZED PURSUANT TO SUBSECTION (QQ)
OF SECTION SIX HUNDRED SIX OF THIS CHAPTER, AND SHALL ENSURE THAT THE
TAXPAYER RECEIVES THAT AMOUNT OF BENEFIT IN ANY GIVEN TAXABLE YEAR.
S 26. Subparagraph (E) of paragraph 1 of subsection (e) of section 606
of the tax law, as amended by chapter 105 of the laws of 2006, is
amended to read as follows:
(E) "Qualifying real property taxes" means all real property taxes,
special ad valorem levies and special assessments, exclusive of penal-
ties and interest, levied on the residence of a qualified taxpayer and
paid during the taxable year [less the credit claimed under subsection
(n-1) of this section]. In addition, for taxable years beginning after
December thirty-first, nineteen hundred eighty-four, a qualified taxpay-
er may elect to include any additional amount that would have been
levied in the absence of an exemption from real property taxation pursu-
ant to section four hundred sixty-seven of the real property tax law. If
tenant-stockholders in a cooperative housing corporation have met the
requirements of section two hundred sixteen of the internal revenue code
by which they are allowed a deduction for real estate taxes, the amount
of taxes so allowable, or which would be allowable if the taxpayer had
filed returns on a cash basis, shall be qualifying real property taxes.
If a residence is owned by two or more individuals as joint tenants or
tenants in common, and one or more than one individual is not a member
of the household, qualifying real property taxes is that part of such
taxes on the residence which reflects the ownership percentage of the
qualified taxpayer and members of his household. If a residence is an
integral part of a larger unit, qualifying real property taxes shall be
limited to that amount of such taxes paid as may be reasonably appor-
tioned to such residence. If a household owns and occupies two or more
residences during different periods in the same taxable year, qualifying
A. 7340--C 19
real property taxes shall be the sum of the prorated qualifying real
property taxes attributable to the household during the periods such
household occupies each of such residences. If the household owns and
occupies a residence for part of the taxable year and rents a residence
for part of the same taxable year, it may include both the proration of
qualifying real property taxes on the residence owned and the real prop-
erty tax equivalent with respect to the months the residence is rented.
Provided, however, for purposes of the credit allowed under this
subsection, qualifying real property taxes may be included by a quali-
fied taxpayer only to the extent that such taxpayer or the spouse of
such taxpayer occupying such residence for six months or more of the
taxable year owns or has owned the residence and paid such taxes.
S 27. Section 606 of the tax law is amended by adding a new subsection
(qq) to read as follows:
(QQ) MAXIMUM RESIDENTIAL SCHOOL TAX CREDIT. (1) DEFINITIONS. FOR THE
PURPOSES OF THIS SUBSECTION:
(A) "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE WHO
OWNS THE RESIDENTIAL REAL PROPERTY IN WHICH HE OR SHE RESIDES.
(B) "HOUSEHOLD" MEANS THE TAXPAYER OR TAXPAYERS AND ALL OTHER PERSONS,
NOT NECESSARILY RELATED, WHO ALL RESIDE IN THE RESIDENTIAL REAL PROPERTY
OWNED BY THE TAXPAYER OR TAXPAYERS, AND SHARE ITS FURNISHINGS, FACILI-
TIES AND ACCOMMODATIONS; PROVIDED THAT NO PERSON MAY BE A MEMBER OF MORE
THAN ONE HOUSEHOLD AT ONE TIME.
(C) "HOUSEHOLD GROSS INCOME" MEANS THE AGGREGATE ADJUSTED GROSS INCOME
OF ALL MEMBERS OF THE HOUSEHOLD FOR THE TAXABLE YEAR AS REPORTED FOR
FEDERAL INCOME TAX PURPOSES, OR WHICH WOULD BE REPORTED AS ADJUSTED
GROSS INCOME IF A FEDERAL INCOME TAX RETURN WERE REQUIRED TO BE FILED,
WITH THE MODIFICATIONS IN SUBSECTION (B) OF SECTION SIX HUNDRED TWELVE
OF THIS ARTICLE BUT WITHOUT THE MODIFICATIONS IN SUBSECTION (C) OF SUCH
SECTION, PLUS ANY PORTION OF THE GAIN FROM THE SALE OR EXCHANGE OF PROP-
ERTY OTHERWISE EXCLUDED FROM SUCH AMOUNT; EARNED INCOME FROM SOURCES
WITHOUT THE UNITED STATES EXCLUDABLE FROM FEDERAL GROSS INCOME BY
SECTION NINE HUNDRED ELEVEN OF THE INTERNAL REVENUE CODE; SUPPORT MONEY
NOT INCLUDED IN ADJUSTED GROSS INCOME; NONTAXABLE STRIKE BENEFITS;
SUPPLEMENTAL SECURITY INCOME PAYMENTS; THE GROSS AMOUNT OF ANY PENSION
OR ANNUITY BENEFITS TO THE EXTENT NOT INCLUDED IN SUCH ADJUSTED GROSS
INCOME (INCLUDING, BUT NOT LIMITED TO, RAILROAD RETIREMENT BENEFITS AND
ALL PAYMENTS RECEIVED UNDER THE FEDERAL SOCIAL SECURITY ACT AND VETER-
ANS' DISABILITY PENSIONS); NONTAXABLE INTEREST RECEIVED FROM THE STATE
OF NEW YORK, ITS AGENCIES, INSTRUMENTALITIES, PUBLIC CORPORATIONS, OR
POLITICAL SUBDIVISIONS (INCLUDING A PUBLIC CORPORATION CREATED PURSUANT
TO AGREEMENT OR COMPACT WITH ANOTHER STATE OR CANADA); WORKERS' COMPEN-
SATION; THE GROSS AMOUNT OF "LOSS-OF-TIME" INSURANCE; AND THE AMOUNT OF
CASH PUBLIC ASSISTANCE AND RELIEF, OTHER THAN MEDICAL ASSISTANCE FOR THE
NEEDY, PAID TO OR FOR THE BENEFIT OF THE QUALIFIED TAXPAYER OR MEMBERS
OF HIS OR HER HOUSEHOLD. HOUSEHOLD GROSS INCOME SHALL NOT INCLUDE
SURPLUS FOODS OR OTHER RELIEF IN KIND OR PAYMENTS MADE TO INDIVIDUALS
BECAUSE OF THEIR STATUS AS VICTIMS OF NAZI PERSECUTION AS DEFINED IN
PUBLIC LAW 103-286. PROVIDED, FURTHER, HOUSEHOLD GROSS INCOME SHALL ONLY
INCLUDE ALL SUCH INCOME RECEIVED BY ALL MEMBERS OF THE HOUSEHOLD WHILE
MEMBERS OF SUCH HOUSEHOLD. FOR FARM FAMILIES EARNING AT LEAST FIFTY
PERCENT OF THEIR INCOME FROM FARMING, "ADJUSTED GROSS INCOME" SHALL BE
REPLACED WITH "MODIFIED ADJUSTED GROSS INCOME" FOR FEDERAL TAX PURPOSES
AS REPORTED ON THE APPLICANT'S FEDERAL AND STATE INCOME TAX RETURNS FOR
THE APPLICABLE INCOME TAX YEAR.
A. 7340--C 20
(D) "NET SCHOOL TAX" MEANS THE SCHOOL TAXES ASSESSED ON THE RESIDEN-
TIAL REAL PROPERTY OWNED AND OCCUPIED BY THE TAXPAYER OR TAXPAYERS AFTER
ANY EXEMPTION OR ABATEMENT RECEIVED PURSUANT TO THE REAL PROPERTY TAX
LAW. SUCH NET SCHOOL TAX SHALL INCLUDE ANY SCHOOL TAXES ASSESSED ON
FARM DWELLINGS NOT OWNED BY THE RESIDENT IF THE LEGAL TITLE TO SUCH
DWELLING IS HELD BY A PARTNERSHIP AND THE DWELLING SERVES AS THE PRIMARY
RESIDENCE OF ONE OR MORE OF THE PARTNERS, OR IF LEGAL TITLE TO SUCH
DWELLING IS HELD BY AN S-CORPORATION OR BY A C-CORPORATION AND THE
DWELLING SERVES AS THE PRIMARY RESIDENCE OF A SHAREHOLDER OF SUCH CORPO-
RATION.
(2) CREDIT. A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE
TAXES IMPOSED BY THIS ARTICLE, EQUAL TO SEVENTY PERCENT OF THE AMOUNT
WHICH THE TAXPAYER'S NET SCHOOL TAX EXCEEDS THE TAXPAYER'S MAXIMUM
SCHOOL TAX, AS DETERMINED BY PARAGRAPH THREE OF THIS SUBSECTION. IF SUCH
CREDIT EXCEEDS THE TAX FOR SUCH TAXABLE YEAR, AS REDUCED BY THE OTHER
CREDITS PERMITTED BY THIS ARTICLE, THE QUALIFIED TAXPAYER MAY RECEIVE,
AND THE COMPTROLLER, SUBJECT TO A CERTIFICATE OF THE DEPARTMENT, SHALL
PAY AS AN OVERPAYMENT, WITHOUT INTEREST, ANY EXCESS BETWEEN SUCH TAX AS
SO REDUCED AND THE AMOUNT OF THE CREDIT. IF A QUALIFIED TAXPAYER IS NOT
REQUIRED TO FILE A RETURN PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF
THIS ARTICLE, A QUALIFIED TAXPAYER MAY NEVERTHELESS RECEIVE AND THE
COMPTROLLER, SUBJECT TO A CERTIFICATE OF THE DEPARTMENT, SHALL PAY AS AN
OVERPAYMENT THE FULL AMOUNT OF THE CREDIT, WITHOUT INTEREST.
(3) MAXIMUM SCHOOL TAX. (A) A QUALIFIED TAXPAYER'S MAXIMUM SCHOOL TAX
SHALL BE DETERMINED AS FOLLOWS:
(I) IN THE CITY OF NEW YORK, AND THE COUNTIES OF NASSAU, SUFFOLK,
ROCKLAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS:
HOUSEHOLD GROSS INCOME MAXIMUM SCHOOL TAX
ONE HUNDRED TWENTY THOUSAND SIX PERCENT OF THE
DOLLARS OR LESS HOUSEHOLD GROSS INCOME
MORE THAN ONE HUNDRED SEVEN PERCENT OF
TWENTY THOUSAND THE HOUSEHOLD
DOLLARS, BUT GROSS INCOME
LESS THAN OR EQUAL TO
ONE HUNDRED SEVENTY-FIVE
THOUSAND DOLLARS
MORE THAN ONE HUNDRED EIGHT PERCENT OF
SEVENTY-FIVE THOUSAND THE HOUSEHOLD
DOLLARS, BUT LESS THAN GROSS INCOME
OR EQUAL TO TWO HUNDRED
FIFTY THOUSAND DOLLARS
MORE THAN TWO HUNDRED NO LIMITATION.
FIFTY THOUSAND
DOLLARS
(II) IN ALL OTHER COUNTIES IN THE STATE:
HOUSEHOLD GROSS MAXIMUM SCHOOL
INCOME TAX
NINETY THOUSAND SIX PERCENT OF THE
DOLLARS OR LESS HOUSEHOLD GROSS INCOME
A. 7340--C 21
MORE THAN NINETY SEVEN PERCENT OF
THOUSAND DOLLARS, BUT THE HOUSEHOLD
LESS THAN OR EQUAL TO GROSS INCOME
ONE HUNDRED FIFTY
THOUSAND DOLLARS
MORE THAN ONE HUNDRED EIGHT PERCENT OF
FIFTY THOUSAND DOLLARS, THE HOUSEHOLD
BUT LESS THAN OR EQUAL GROSS INCOME
TO TWO HUNDRED FIFTY THOUSAND
DOLLARS
MORE THAN TWO HUNDRED FIFTY NO LIMITATION.
THOUSAND DOLLARS
(B) THE THRESHOLDS OF HOUSEHOLD GROSS INCOME FOR ELIGIBILITY FOR THE
MAXIMUM SCHOOL TAX CREDIT, ESTABLISHED BY SUBPARAGRAPH (A) OF THIS PARA-
GRAPH, SHALL BE INDEXED FOR INFLATION.
(4) EXCLUSIONS FROM ELIGIBILITY. NO CREDIT SHALL BE GRANTED UNDER THIS
SUBSECTION IF THE QUALIFIED TAXPAYER CLAIMS THE REAL PROPERTY TAX
CIRCUIT BREAKER CREDIT, PURSUANT TO SUBSECTION (E) OF THIS SECTION,
DURING THE TAXABLE YEAR.
(5) FOR PURPOSES OF THIS SUBSECTION, IN THE CITIES OF BUFFALO, ROCHES-
TER, YONKERS, AND SYRACUSE, A TAXPAYER'S NET SCHOOL TAX SHALL BE DETER-
MINED BY MULTIPLYING SUCH TAXPAYER'S TOTAL REAL PROPERTY TAX BILL BY
SIXTY-SEVEN PERCENT. IN THE CITY OF NEW YORK, A TAXPAYER'S NET SCHOOL
TAX SHALL BE DETERMINED BY MULTIPLYING SUCH TAXPAYER'S TOTAL REAL PROP-
ERTY TAX BILL BY FIFTY PERCENT.
S 28. Subdivision 3 of section 97-rrr of the state finance law, as
amended by section 8 of part F of chapter 109 of the laws of 2006, is
amended to read as follows:
3. The monies in such fund shall be appropriated for school property
tax exemptions [and local property tax rebates] granted pursuant to the
real property tax law and [the tax law and payable pursuant to section
thirty-six hundred nine of the education law,] for payments to the city
of New York pursuant to section fifty-four-f of this chapter[, and
pursuant to section one hundred seventy-eight of the tax law].
S 29. The general municipal law is amended by adding a new section 25
to read as follows:
S 25. FUNDING OF MANDATES. 1. DEFINITIONS. AS USED IN THIS SECTION,
THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS UNLESS THE CONTEXT
SHALL OTHERWISE REQUIRE:
(A) "MANDATE" MEANS:
(I) ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM OR
REQUIRES A HIGHER LEVEL OF SERVICE FOR AN EXISTING PROGRAM WHICH A
MUNICIPAL CORPORATION IS REQUIRED TO PROVIDE; OR
(II) ANY GENERAL LAW WHICH GRANTS A NEW PROPERTY TAX EXEMPTION OR
INCREASES AN EXISTING PROPERTY TAX EXEMPTION WHICH THE MUNICIPAL CORPO-
RATION IS REQUIRED TO PROVIDE.
(B) "UNFUNDED MANDATE" SHALL MEAN:
(I) ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM OR
REQUIRES A HIGHER LEVEL OF SERVICE FOR AN EXISTING PROGRAM WHICH A
MUNICIPAL CORPORATION IS REQUIRED TO PROVIDE AND WHICH RESULTS IN A NET
ADDITIONAL COST TO THE MUNICIPAL CORPORATION;
(II) ANY ALTERATION IN FUNDING PROVIDED TO A MUNICIPAL CORPORATION FOR
THE PURPOSE OF DEFRAYING THE COSTS OF A PROGRAM WHICH IT IS REQUIRED TO
A. 7340--C 22
PROVIDE, THEREBY RESULTING IN A NET ADDITIONAL COST TO THE MUNICIPAL
CORPORATION; OR
(III) ANY GENERAL LAW WHICH GRANTS A NEW PROPERTY TAX EXEMPTION OR
INCREASES AN EXISTING PROPERTY TAX EXEMPTION WHICH THE MUNICIPAL CORPO-
RATION IS REQUIRED TO PROVIDE, THEREBY RESULTING IN A NET ADDITIONAL
COST TO THE MUNICIPAL CORPORATION.
(C) "NET ADDITIONAL COST" MEANS THE COST OR COSTS INCURRED OR ANTIC-
IPATED TO BE INCURRED WITHIN A ONE YEAR PERIOD BY A LOCAL GOVERNMENT IN
PERFORMING OR ADMINISTERING A MANDATE AFTER SUBTRACTING THEREFROM ANY
REVENUES RECEIVED OR RECEIVABLE BY THE LOCAL GOVERNMENT ON ACCOUNT OF
THE MANDATED PROGRAM OR SERVICE, INCLUDING BUT NOT LIMITED TO:
(I) FEES CHARGED TO THE RECIPIENTS OF THE MANDATED PROGRAM OR SERVICE;
(II) STATE OR FEDERAL AID PAID SPECIFICALLY OR CATEGORICALLY IN
CONNECTION WITH THE PROGRAM OR SERVICE; AND
(III) AN OFFSETTING SAVINGS RESULTING FROM THE DIMINUTION OR ELIMI-
NATION OF ANY OTHER PROGRAM OR SERVICE DIRECTLY ATTRIBUTABLE TO THE
PERFORMANCE OR ADMINISTRATION OF THE MANDATED PROGRAM.
2. FUNDING OF MUNICIPAL CORPORATION MANDATES. (A) NOTWITHSTANDING ANY
OTHER PROVISION OF LAW, NO UNFUNDED MANDATE SHALL BE ENACTED WHICH
CREATES AN ANNUAL NET ADDITIONAL COST TO ANY MUNICIPAL CORPORATION IN
EXCESS OF TEN THOUSAND DOLLARS OR AN AGGREGATE ANNUAL NET ADDITIONAL
COST TO ALL MUNICIPAL CORPORATIONS IN EXCESS OF ONE MILLION DOLLARS.
(B) THERE SHALL BE NO NEW LEGISLATIVE OR REGULATORY MANDATES IMPOSED
ON LOCAL GOVERNMENTS WITHOUT A COMPLETE ACCOUNTING OF THE EXPECTED
FISCAL IMPACT ON SUCH LOCAL GOVERNMENTS, AND SUCH ACCOUNTING MUST
INCLUDE FULL DOCUMENTATION, INPUT FROM AFFECTED MUNICIPALITIES AND
PROPOSED REVENUE SOURCES WITH WHICH TO FUND THE NEW MANDATE.
3. EXEMPTIONS TO THE FUNDING OF MUNICIPAL CORPORATION MANDATES
REQUIREMENT. (A) THE STATE SHALL NOT BE REQUIRED TO FUND ANY NEW OR
EXPANDED PROGRAMS IF:
(I) THE MANDATE IS REQUIRED BY A COURT ORDER OR JUDGMENT;
(II) THE MANDATE IS PROVIDED AT THE OPTION OF THE LOCAL GOVERNMENT
UNDER A LAW, REGULATION, RULE, OR ORDER THAT IS PERMISSIVE RATHER THAN
MANDATORY;
(III) THE MANDATE RESULTS FROM THE PASSAGE OF A HOME RULE MESSAGE
WHEREBY A LOCAL GOVERNMENT REQUESTS AUTHORITY TO IMPLEMENT THE PROGRAM
OR SERVICE SPECIFIED IN THE STATUTE, AND THE STATUTE IMPOSES COSTS ONLY
UPON THAT LOCAL GOVERNMENT WHICH REQUESTS THE AUTHORITY TO IMPOSE THE
PROGRAM OR SERVICE;
(IV) THE MANDATE IS REQUIRED BY, OR ARISES FROM, AN EXECUTIVE ORDER OF
THE GOVERNOR EXERCISING HIS OR HER EMERGENCY POWERS; OR
(V) THE MANDATE IS REQUIRED BY STATUTE OR EXECUTIVE ORDER THAT IMPLE-
MENTS A FEDERAL LAW OR REGULATION AND RESULTS FROM COSTS MANDATED BY THE
FEDERAL GOVERNMENT TO BE BORNE AT THE LOCAL LEVEL, UNLESS THE STATUTE OR
EXECUTIVE ORDER RESULTS IN COSTS WHICH EXCEED THE COSTS MANDATED BY THE
FEDERAL GOVERNMENT.
(B) EACH ACT ESTABLISHING A MANDATE SHALL PROVIDE THAT THE EFFECTIVE
DATE OF ANY SUCH MANDATE IMPOSED ON MUNICIPAL CORPORATIONS SHALL BE
CONSISTENT WITH THE NEEDS OF THE STATE AND MUNICIPAL CORPORATIONS TO
PLAN IMPLEMENTATION THEREOF AND CONSISTENT WITH THE AVAILABILITY OF
REQUIRED FUNDS.
S 30. Subparagraph 2 of paragraph d of subdivision 4 of section 1950
of the education law is REPEALED.
S 31. Subdivision 4 of section 1950 of the education law is amended by
adding a new paragraph oo to read as follows:
A. 7340--C 23
OO. (1) FORM HEALTH INSURANCE TRUSTS WITH COMPONENT SCHOOL DISTRICTS
OR DISTRICTS OF CHILDREN WHO RESIDE WITHIN THE BOARD OF COOPERATIVE
EDUCATIONAL SERVICES TO PURCHASE AND ADMINISTER EMPLOYEES' HEALTH INSUR-
ANCE AND WORKERS' COMPENSATION INSURANCE.
(2) ENTER INTO CONTRACTS WITH THE SCHOOL DISTRICTS OF THE CITIES OF
ROCHESTER, BUFFALO, SYRACUSE, AND YONKERS TO PROVIDE ITS SERVICES. THE
BOARD SHALL, IN ITS SOLE DISCRETION, DETERMINE THE FAIR MARKET VALUE OF
THE SERVICES THAT IT PROVIDES TO EACH SCHOOL DISTRICT.
S 32. Subparagraphs (A) and (B) of paragraph 2 of subsection (e) of
section 1310 of the tax law, as amended by section 4 of part M of chap-
ter 57 of the laws of 2009, are amended to read as follows:
(A) Married individuals filing joint returns and surviving spouses. In
the case of a husband and wife who make a single return jointly and of a
surviving spouse:
For taxable years beginning: The credit shall be:
in 2001-2005 $125
in 2006 $230
in 2007-2008 $290
in 2009 [and after] [$125] $310
AFTER 2009 $335
(B) All others. In the case of an unmarried individual, a head of a
household or a married individual filing a separate return:
For taxable years beginning: The credit shall be:
in 2001-2005 $62.50
in 2006 $115
in 2007-2008 $145
in 2009 [and after] [$62.50] $155
AFTER 2009 $167.50
S 33. Subparagraphs (A) and (B) of paragraph 2 of subdivision (c) of
section 11-1706 of the administrative code of the city of New York, as
amended by section 5 of part M of chapter 57 of the laws of 2009, are
amended to read as follows:
(A) Married individuals filing joint returns and surviving spouses. In
the case of a husband and wife who make a single return jointly and of a
surviving spouse:
For taxable years beginning: The credit shall be:
in 2001-2005 $125
in 2006 $230
in 2007-2008 $290
in 2009 [and after] [$125} $310
AFTER 2009 $335
(B) All others. In the case of an unmarried individual, a head of a
household or a married individual filing a separate return:
For taxable years beginning: The credit shall be:
in 2001-2005 $62.50
in 2006 $115
in 2007-2008 $145
in 2009 [and after] [$65.50] $155
AFTER 2009 $167.50
S 34. This act shall take effect immediately, provided that:
a. the provisions of sections one, ten and twenty-nine of this act
shall be deemed to have been in full force and effect on and after April
1, 2009 and shall apply to any general or special law imposing mandates
on municipal corporations or school districts enacted on or after such
effective date;
A. 7340--C 24
b. the commissioner of education shall adopt any regulations needed to
implement the provisions of this act on or before July 1, 2010;
c. the provisions of sections twenty-six, twenty-seven, and twenty-
eight of this act shall take effect on the first of January next
succeeding the date on which it shall have become a law, and shall apply
to taxable years commencing on or after such date; and
d. the provisions of section seven of this act shall take effect
February 1, 2010 and shall first apply to the levy of taxes by school
districts for the 2010-2011 school year and to school district meetings
and elections held on and after such effective date; and
e. sections six, twelve, thirteen, and fourteen of this act shall take
effect July 1, 2010.