Senate Bill S1849

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

                                 1849--D

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 9, 2009
                               ___________

Introduced  by Sens. KLEIN, C. JOHNSON, FOLEY, ADDABBO, AUBERTINE, BONA-
  CIC, DIAZ, DILAN, ESPADA, HASSELL-THOMPSON, KRUGER, MONSERRATE,  MONT-
  GOMERY,  ONORATO,  OPPENHEIMER,  PARKER, SAVINO, STACHOWSKI, STAVISKY,
  STEWART-COUSINS, VALESKY -- read twice and ordered printed,  and  when
  printed  to  be  committed  to  the  Committee  on Local Government --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted  to  said committee -- committee discharged, bill amended,
  ordered reprinted as amended and  recommitted  to  said  committee  --
  reported  favorably from said committee and committed to the Committee
  on Finance -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said  committee  --  committee  discharged,
  bill  amended,  ordered  reprinted  as amended and recommitted to said
  committee

AN ACT to amend the real property tax law, in relation  to  the  "Middle
  Class STAR" rebate program; to amend the education law, in relation to
  the  effect  of  mandates  on school districts; to amend the education
  law, in  relation  to  the  streamlining  of  planning  and  reporting
  requirements  for  school  districts  and boards of cooperative educa-
  tional services; to amend the tax  law,  in  relation  to  the  school
  district  property tax credit and establishing the maximum residential
  school property tax, personal income tax credit; to  amend  the  state
  finance  law,  in relation to local property tax rebates; to amend the
  general municipal law and the education law, in relation to  requiring
  the state to fund certain programs mandated for municipal corporations
  and  school  districts;  to  amend  the  education law, in relation to
  student transportation; to amend the administrative code of  the  city
  of  New York, in relation to an enhanced personal income tax credit in
  New York city; to repeal subdivision 32 of section 305 of  the  educa-
  tion  law  relating  to  a  study of reporting requirements; to repeal
  section 805 of the education law relating to  special  procedures  for
  enforcement of the health education curriculum; to repeal subparagraph
  2 of paragraph d of subdivision 4 of section 1950 of the education law
  relating to prohibited aidable shared services; to repeal subparagraph
  2-a  of  paragraph d of subdivision 4 of section 1950 of the education

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

                                                           LBD05273-10-9

S. 1849--D                          2

  law relating to demonstration of cost-effectiveness  of  instructional
  and   non-instructional   technology   acquired  by  component  school
  districts through a board  of  cooperative  educational  services;  to
  repeal  paragraph  d of subdivision 26-a of section 3602 of the educa-
  tion law relating to a plan for use of instructional computer technol-
  ogy equipment; and to repeal subdivision 13 of section 3602-e  of  the
  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

S. 1849--D                          3

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-
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

S. 1849--D                          4

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.
  (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-

S. 1849--D                          5

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
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

S. 1849--D                          6

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
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-

S. 1849--D                          7

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
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-

S. 1849--D                          8

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:
  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;

S. 1849--D                          9

  (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
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

S. 1849--D                         10

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
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

S. 1849--D                         11

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.]
  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-

S. 1849--D                         12

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].
  (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

S. 1849--D                         13

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
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

S. 1849--D                         14

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
[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

S. 1849--D                         15

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.
  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

S. 1849--D                         16

INCOME  TAX  YEAR ENDING IN TWO THOUSAND SEVEN. IN EACH SUBSEQUENT YEAR,
THE APPLICABLE INCOME TAX YEAR SHALL BE ADVANCED BY ONE YEAR.
   (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

S. 1849--D                         17

A STATE INCOME TAX RETURN, THE DEPARTMENT MAY, SUBJECT TO AUDIT, ISSUE A
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-

S. 1849--D                         18

SURE; INCLUDING NAMES, ADDRESSES, AND DOLLAR AMOUNTS  OF  REBATES.    IN
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

S. 1849--D                         19

residences during different periods in the same taxable year, qualifying
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.

S. 1849--D                         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

S. 1849--D                         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

S. 1849--D                         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:

S. 1849--D                         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;

S. 1849--D                         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.