LBD15860-01-0
A. 10914 2
(I) EXPENDITURES RESULTING FROM TAX CERTIORARI PROCEEDINGS,
(II) EXPENDITURES RESULTING FROM COURT ORDERS OR JUDGMENTS AGAINST THE
CITY,
(III) EMERGENCY EXPENDITURES WHICH ARE CERTIFIED BY THE STATE COMP-
TROLLER AS NECESSARY AS A RESULT OF DAMAGE TO OR DESTRUCTION OF A CITY
BUILDING OR EQUIPMENT,
(IV) CAPITAL EXPENDITURES FOR THE CONSTRUCTION, ACQUISITION, RECON-
STRUCTION, REHABILITATION OR IMPROVEMENT OF CITY FACILITIES, INCLUDING
DEBT SERVICE AND LEASE COSTS,
(V) EXPENDITURES ATTRIBUTABLE TO PROJECTED INCREASES IN CONSTRUCTION
COSTS,
(VI) NONRECURRING EXPENDITURES IN A PRIOR CITY FISCAL YEAR, AND
(VII) EXPENDITURES INCURRED DUE TO MERGERS OR SERVICE CONSOLIDATIONS
BETWEEN THE CITY AND ANY OTHER MUNICIPALITY DURING THE FISCAL YEAR IN
WHICH SUCH MERGER OR CONSOLIDATION OCCURS;
(D) THE CITY BUDGET ADOPTED BY THE CITY LEGISLATIVE BODY INCLUDES A
STATEMENT OF THE PROJECTED PERCENTAGE OF INCREASE OR DECREASE IN TOTAL
SPENDING DURING THE FISCAL YEAR, AND STATING THE REASONS FOR EXCLUDING
ANY INCREASE IN SPENDING IN FORMULATION OF THE CITY BUDGET; AND
(E) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE LEGISLA-
TIVE BODY OF THE CITY SHALL NOT AMEND A FINAL BUDGET IF SUCH AMENDMENT
RESULTS IN AN INCREASE IN EXCESS OF THE LIMITATION ESTABLISHED IN PARA-
GRAPH (C) OF THIS SUBDIVISION; EXCEPT
(1) THE INCREASED SPENDING IS THE RESULT OF AN ACTUAL INCREASE IN
CONSTRUCTION COSTS ABOVE THE PROJECT COSTS THEREOF AT THE TIME THE BUDG-
ET WAS ADOPTED; HOWEVER IF ACTUAL CONSTRUCTION COSTS ARE LESS THAN THE
PROJECT COSTS, SUCH EXCESS FUNDS SHALL BE USED TO REDUCE TAXES, AND
(2) THE INCREASED SPENDING IS PAID FROM GIFTS OR GRANTS IN AID NOT
INCLUDED IN THE BUDGET.
2. THE TAX RELIEF EXEMPTION PROVIDED BY THIS SECTION SHALL BE EQUAL TO
THE EXEMPTION GRANTED TO THE OWNER OR OWNERS PURSUANT TO SECTION FOUR
HUNDRED TWENTY-FIVE OF THIS TITLE FOR THE TWO THOUSAND FOURTEEN--TWO
THOUSAND FIFTEEN SCHOOL YEAR.
3. NOT LATER THAN SEVEN DAYS AFTER THE ADOPTION OF A BUDGET, EACH CITY
SHALL TRANSMIT A STATEMENT TO THE STATE COMPTROLLER, DESCRIBING THE TAX
REVENUE LOST DURING THAT FISCAL YEAR DUE TO THE IMPLEMENTATION OF THE
PROVISIONS OF THIS SECTION. THE STATE COMPTROLLER SHALL CERTIFY THE
VALIDITY OF SUCH LOSSES WITHIN THIRTY DAYS OF RECEIPT OF SUCH STATEMENT.
UPON SUCH VALIDATION THE STATE COMPTROLLER SHALL PROVIDE FUNDS TO THE
CITY WITHIN THIRTY DAYS.
4. THE STATE SHALL APPROPRIATE AN AMOUNT EQUAL TO FORTY-FIVE AND ONE-
HALF PERCENT OF THE FUND APPROPRIATED BY THE STATE FOR THE IMPLEMENTA-
TION OF THE PROVISIONS OF THIS SECTION, WHICH SHALL BE PAID TO CITIES
HAVING A POPULATION OF ONE MILLION OR MORE ACCORDING TO THE LATEST
DECENNIAL FEDERAL CENSUS, AND SUCH AMOUNT SHALL BE USED TO REDUCE INCOME
OR REAL PROPERTY TAXES IN SUCH CITIES AT THE CITIES' DISCRETION.
5. FOR THE PURPOSES OF THIS SECTION:
(A) "BASE YEAR" SHALL MEAN THE CITY FISCAL YEAR IMMEDIATELY PRECEDING
THE COUNTY FISCAL YEAR FOR WHICH THE CITY BUDGET IS PREPARED.
(B) "CONSUMER PRICE INDEX" SHALL MEAN THE PERCENTAGE THAT REPRESENTS
THE AVERAGE OF THE NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE
UNITED STATES DEPARTMENT OF LABOR, FOR THE TWELVE MONTH PERIOD PRECEDING
JANUARY FIRST OF THE CURRENT YEAR.
(C) "CURRENT YEAR" SHALL MEAN THE CALENDAR YEAR IN WHICH THE CITY
BUDGET IS SUBMITTED FOR A VOTE BY THE CITY'S LEGISLATIVE BODY.
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6. THE STATE SHALL APPROPRIATE ALL FUNDS NECESSARY TO MUNICIPALITIES
TO ADMINISTER THE PROVISIONS OF THIS SECTION AND TO IMPLEMENT ANY LAW,
REGULATION, OR RULE ADOPTED AFTER JANUARY FIRST, TWO THOUSAND TWELVE
WHICH WOULD REQUIRE A MUNICIPALITY TO EXPEND ANY OF ITS AVAILABLE FUNDS.
7. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS SECTION, THE
PROVISIONS OF PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION SHALL NOT
APPLY TO ANY CITY WHICH DOES NOT INCREASE ITS PROPERTY TAX RATE, SALES
TAX RATE, OR THE RATE OF ANY OTHER TAX, DURING ITS CURRENT BUDGET YEAR.
S 425-C. COUNTY STATE-SUPPORTED TAX RELIEF (COUNTYSTAR) EXEMPTION. 1.
REAL PROPERTY SITUATE IN A COUNTY AND OWNED BY AN OWNER OR OWNERS GRANT-
ED THE SCHOOL TAX RELIEF EXEMPTION, PURSUANT TO SECTION FOUR HUNDRED
TWENTY-FIVE OF THIS TITLE, AND NOT RECEIVING THE TAX EXEMPTION ESTAB-
LISHED BY SECTION FOUR HUNDRED TWENTY-FIVE-B OF THIS TITLE SHALL ALSO BE
ELIGIBLE FOR A COUNTY REAL PROPERTY TAX EXEMPTION PURSUANT TO THIS
SECTION FOR COUNTY TAX YEARS COMMENCING ON OR AFTER JANUARY FIRST, TWO
THOUSAND THIRTEEN, IF SUCH COUNTY MEETS THE FOLLOWING CRITERIA:
(A) THE LEGISLATIVE BODY OF SUCH COUNTY APPROVES A RESOLUTION PROVID-
ING FOR SUCH TAX RELIEF EXEMPTION;
(B) (1) INCREASES IN TOTAL COUNTY EXPENDITURES DURING THE CURRENT YEAR
DO NOT EXCEED THE LESSER OF (I) ONE HUNDRED TWENTY PER CENTUM OF THE
TOTAL COUNTY EXPENDITURES FOR THE BASE YEAR MULTIPLIED BY THE CONSUMER
PRICE INDEX, OR (II) FOUR PERCENT.
(2) FOR THE PURPOSES OF SUBPARAGRAPH ONE OF THIS PARAGRAPH, TOTAL
COUNTY EXPENDITURES SHALL NOT INCLUDE:
(I) EXPENDITURES RESULTING FROM TAX CERTIORARI PROCEEDINGS,
(II) EXPENDITURES RESULTING FROM COURT ORDERS OR JUDGMENTS AGAINST THE
COUNTY,
(III) EMERGENCY EXPENDITURES WHICH ARE CERTIFIED BY THE STATE COMP-
TROLLER AS NECESSARY AS A RESULT OF DAMAGE TO OR DESTRUCTION OF A COUNTY
BUILDING OR EQUIPMENT,
(IV) CAPITAL EXPENDITURES FOR THE CONSTRUCTION, ACQUISITION, RECON-
STRUCTION, REHABILITATION OR IMPROVEMENT OF COUNTY FACILITIES, INCLUDING
DEBT SERVICE AND LEASE COSTS,
(V) EXPENDITURES ATTRIBUTABLE TO PROJECTED INCREASES IN CONSTRUCTION
COSTS,
(VI) NONRECURRING EXPENDITURES IN A PRIOR COUNTY FISCAL YEAR, AND
(VII) EXPENDITURES INCURRED DUE TO MERGERS OR SERVICE CONSOLIDATIONS
BETWEEN THE COUNTY AND ANY OTHER MUNICIPALITY DURING THE FISCAL YEAR IN
WHICH SUCH MERGER OR CONSOLIDATION OCCURS;
(C) THE COUNTY BUDGET ADOPTED BY THE CITY LEGISLATIVE BODY INCLUDES A
STATEMENT OF THE PROJECTED PERCENTAGE OF INCREASE OR DECREASE IN TOTAL
SPENDING DURING THE FISCAL YEAR, AND STATING THE REASONS FOR EXCLUDING
ANY INCREASE IN SPENDING IN FORMULATION OF THE COUNTY BUDGET; AND
(D) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE LEGISLA-
TIVE BODY OF THE COUNTY SHALL NOT AMEND A FINAL BUDGET IF SUCH AMENDMENT
RESULTS IN AN INCREASE IN EXCESS OF THE LIMITATION ESTABLISHED IN PARA-
GRAPH (B) OF THIS SUBDIVISION; EXCEPT
(1) THE INCREASED SPENDING IS THE RESULT OF AN ACTUAL INCREASE IN
CONSTRUCTION COSTS ABOVE THE PROJECT COSTS THEREOF AT THE TIME THE BUDG-
ET WAS ADOPTED; HOWEVER IF ACTUAL CONSTRUCTION COSTS ARE LESS THAN THE
PROJECT COSTS, SUCH EXCESS FUNDS SHALL BE USED TO REDUCE TAXES, AND
(2) THE INCREASED SPENDING IS PAID FROM GIFTS OR GRANTS IN AID NOT
INCLUDED IN THE BUDGET.
2. THE TAX RELIEF EXEMPTION PROVIDED BY THIS SECTION SHALL BE EQUAL TO
TWO-THIRDS OF THE EXEMPTION GRANTED TO THE OWNER OR OWNERS PURSUANT TO
SECTION FOUR HUNDRED TWENTY-FIVE OF THIS TITLE FOR THE TWO THOUSAND
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FOURTEEN--TWO THOUSAND FIFTEEN SCHOOL YEAR BUT IN NO CASE SHALL THE
VALUE OF THE EXEMPTION BE LESS THAN ONE-HALF OF ONE PERCENT OF THE TWO-
THIRDS OF THE EXEMPTION GRANTED TO THE OWNER OR OWNERS PURSUANT TO
SECTION FOUR HUNDRED TWENTY-FIVE OF THIS TITLE FOR THE TWO THOUSAND
THIRTEEN--TWO THOUSAND FOURTEEN SCHOOL YEAR.
3. NOT LATER THAN SEVEN DAYS AFTER THE ADOPTIONS OF A BUDGET, EACH
COUNTY SHALL TRANSMIT A STATEMENT TO THE STATE COMPTROLLER DESCRIBING
THE TAX REVENUE LOST DURING THAT FISCAL YEAR DUE TO THE IMPLEMENTATION
OF THE PROVISIONS OF THIS SECTION. THE STATE COMPTROLLER SHALL CERTIFY
THE VALIDITY OF SUCH LOSSES WITHIN THIRTY DAYS OF RECEIPT OF SUCH STATE-
MENT. UPON SUCH VALIDATION THE STATE COMPTROLLER SHALL PROVIDE FUNDS TO
THE COUNTY WITHIN THIRTY DAYS.
4. FOR THE PURPOSES OF THIS SECTION:
(A) "BASE YEAR" SHALL MEAN THE COUNTY FISCAL YEAR IMMEDIATELY PRECED-
ING THE COUNTY FISCAL YEAR FOR WHICH THE COUNTY BUDGET IS PREPARED.
(B) "CONSUMER PRICE INDEX" SHALL MEAN THE PERCENTAGE THAT REPRESENTS
THE AVERAGE OF THE NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE
UNITED STATES DEPARTMENT OF LABOR, FOR THE TWELVE MONTH PERIOD PRECEDING
JANUARY FIRST OF THE CURRENT YEAR.
(C) "CURRENT YEAR" SHALL MEAN THE CALENDAR YEAR IN WHICH THE COUNTY
BUDGET IS SUBMITTED FOR A VOTE BY THE COUNTY'S LEGISLATIVE BODY.
5. THE STATE SHALL APPROPRIATE ALL FUNDS NECESSARY TO MUNICIPALITIES
TO ADMINISTER THE PROVISIONS OF THIS SECTION AND TO IMPLEMENT ANY LAW,
REGULATION, OR RULE ADOPTED AFTER JANUARY FIRST, TWO THOUSAND TWELVE
WHICH WOULD REQUIRE A MUNICIPALITY TO EXPEND ANY OF ITS AVAILABLE FUNDS.
6. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS SECTION, THE
PROVISIONS OF PARAGRAPH (C) OF SUBDIVISION ONE OF SECTION FOUR HUNDRED
TWENTY-FIVE-B OF THIS TITLE SHALL NOT APPLY TO ANY CITY WHICH DOES NOT
INCREASE ITS PROPERTY TAX RATE, SALES TAX RATE, OR THE RATE OF ANY OTHER
TAX, DURING ITS CURRENT BUDGET YEAR.
S 2. Paragraph (a) of subdivision 20 of section 210 of the tax law, as
amended by chapter 161 of the laws of 2005, is amended to read as
follows:
(a) A taxpayer shall be allowed a credit against the tax imposed by
this article. The amount of the credit shall be equal to twenty-five
percent of the sum of the following investments and contributions made
during the taxable year and certified by the commissioner of economic
development: (1) for taxable years beginning before January first, two
thousand five, qualified investments made in, or contributions in the
form of donations made to, one or more empire zone capital corporations
established pursuant to section nine hundred sixty-four of the general
municipal law prior to January first, two-thousand five, (2) qualified
investments in certified zone businesses which during the twelve month
period immediately preceding the month in which such investment is made
employed full-time within the state an average number of individuals,
excluding general executive officers, of two hundred fifty or fewer,
computed pursuant to the provisions of subparagraph three of paragraph
(b) of subdivision nineteen of this section, [except for investments
made by or on behalf of an owner of the business, including, but not
limited to, a stockholder, partner or sole proprietor, or any related
person, as defined in subparagraph (C) of paragraph three of subsection
(b) of section four hundred sixty-five of the internal revenue code,]
and (3) contributions IN THE FORM of money OR PROPERTY to community
development projects as defined in regulations promulgated by the
commissioner of economic development. "Qualified investments" means the
contribution of property to a corporation in exchange for original issue
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capital stock or other ownership interest, the contribution of property
to a partnership in exchange for an interest in the partnership, and
similar contributions in the case of a business entity not in corporate
or partnership form in exchange for an ownership interest in such enti-
ty. The total amount of credit allowable to a taxpayer under this
provision for all years, taken in the aggregate, shall not exceed three
hundred thousand dollars[, and shall not exceed one hundred thousand
dollars with respect to the investments and contributions described in
each of subparagraphs one, two and three of this paragraph].
S 3. Paragraph 3 of subsection (j) of section 606 of the tax law, as
amended by chapter 637 of the laws of 2008, is amended to read as
follows:
(3) A taxpayer shall not be allowed a credit under this subsection
with respect to any tangible personal property and other tangible prop-
erty, including buildings and structural components of buildings, which
it leases to any other person or corporation except where a taxpayer
leases property to an affiliated regulated broker, dealer, or registered
investment adviser that uses such property in accordance with clause
(iv) or (v) of subparagraph (E) of paragraph two of this subsection.
PROVIDED, HOWEVER, A TAXPAYER CERTIFIED PURSUANT TO ARTICLE EIGHTEEN-B
OF THE GENERAL MUNICIPAL LAW, WHO ENTERS INTO A LEASE FOR NOT LESS THAN
TEN YEARS, SHALL BE ELIGIBLE FOR A TAX CREDIT PURSUANT TO THIS
SUBSECTION FOR LEASE PAYMENTS ON AND IMPROVEMENTS TO THE EMPIRE ZONE
BUSINESS. For purposes of [the preceding sentence] THIS PARAGRAPH, any
contract or agreement to lease or rent or for a license to use such
property shall be considered a lease. Provided, however, in determining
whether a taxpayer shall be allowed a credit under this subsection with
respect to such property, any election made with respect to such proper-
ty pursuant to the provisions of paragraph eight of subsection (f) of
section one hundred sixty-eight of the internal revenue code, as such
paragraph was in effect for agreements entered into prior to January
first, nineteen hundred eighty-four, shall be disregarded.
S 4. Paragraph 1 of subsection (l) of section 606 of the tax law, as
amended by chapter 161 of the laws of 2005, is amended to read as
follows:
(1) A taxpayer shall be allowed a credit against the tax imposed by
this article. The amount of the credit shall be equal to twenty-five
percent of the sum of the following investments and contributions made
during the taxable year and certified by the commissioner of economic
development: (A) for taxable years beginning before January first, two
thousand five, qualified investments made in, or contributions in the
form of donations made to, one or more empire zone capital corporations
established pursuant to section nine hundred sixty-four of the general
municipal law prior to January first, two thousand five, (B) qualified
investments in certified zone businesses which during the twelve month
period immediately preceding the month in which such investment is made
employed full-time within the state an average number of individuals of
two hundred fifty or fewer, computed pursuant to the provisions of
subparagraph (C) of paragraph two of subsection (k) of this section,
[except for investments made by or on behalf of an owner of the business
including, but not limited to, a stockholder, partner or sole proprie-
tor, or any related person, as defined in subparagraph (C) of paragraph
three of subsection (b) of section four hundred sixty-five of the inter-
nal revenue code,] and (C) contributions of money to community develop-
ment projects as defined in regulations promulgated by the commissioner
of economic development. "Qualified investments" means the contribution
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of property to a corporation in exchange for original issue capital
stock or other ownership interest, the contribution of property to a
partnership in exchange for an interest in the partnership, and similar
contributions in the case of a business entity not in corporate or part-
nership form in exchange for an ownership interest in such entity. The
total amount of credit allowable to a taxpayer under this provision for
all years, taken in the aggregate, shall not exceed three hundred thou-
sand dollars[, and shall not exceed one hundred thousand dollars with
respect to the investments and contributions described in each of
subparagraphs (A), (B) and (C) of this paragraph].
S 5. Subparagraphs (B) and (C) of paragraph 2 of subsection (l) of
section 606 of the tax law, as amended by chapter 708 of the laws of
1993, are amended to read as follows:
(B) In the case of a husband or wife who is required to file a sepa-
rate return, the limitation provided for in paragraph one of this
subsection shall be fifty [thousand dollars in lieu of one hundred thou-
sand dollars and one hundred fifty thousand dollars in lieu of three
hundred thousand dollars] PERCENT OF THE INVESTMENTS OR CONTRIBUTIONS
DESCRIBED IN EACH OF THE SUBPARAGRAPHS (A), (B) AND (C) OF PARAGRAPH ONE
OF THIS SUBSECTION, unless the spouse of the taxpayer has no credit
allowable under this subsection for the taxable year of such spouse
which ends within or with the taxpayer's taxable year.
(C) In the case of an estate or trust, the limitation provided for in
paragraph one of this subsection shall be reduced to an amount which
bears the same ratio [to one hundred thousand dollars] OF THE INVESTMENT
OR CONTRIBUTION and an amount which bears the same ratio to three
hundred thousand dollars as the portion of the income of the estate or
trust which is not allocated to beneficiaries bears to the total income
of the estate or trust.
S 6. Subdivisions (a) and (d) of section 964 of the general municipal
law, as amended by chapter 708 of the laws of 1993, and subdivision (a)
as amended by section 9 of part s-1 of chapter 57 of the laws of 2009,
are amended to read as follows:
(a) No more than three empire zone capital corporations may be [estab-
lished] DESIGNATED in each zone for the purpose of raising funds through
private and public grants, donations or investments, to be used in
making investments in, and loans to, business firms certified pursuant
to subdivision (a) of section nine hundred fifty-nine of this article
for the purpose of encouraging the establishment or expansion of busi-
nesses and the provision of additional job opportunities within such
area. PRIOR TO DESIGNATION AS A ZONE CAPITAL CORPORATION, A SEPARATE
AND DISTINCT ZONE CAPITAL CORPORATION FUND SHALL BE ESTABLISHED SOLELY
FOR THE RECEIPT AND DISBURSEMENT OF FUNDS PURSUANT TO THIS SUBDIVISION.
A zone capital corporation may serve one or more zones within an econom-
ic development region or zones within two or more regions. Prior to the
[establishment] DESIGNATION of a zone capital corporation, the zone
board and the commissioner of the department of economic development
shall approve the [formation] DESIGNATION of the proposed zone capital
corporation, its board of directors and management, and its procedures
for making, servicing and monitoring investments. In no event, however,
shall an empire zone capital corporation acquire an ownership interest
in any certified business firm which amounts to more than twenty-five
percent of the ownership interest of such certified business firm. No
loan to or investment in any business firm shall be made by an empire
zone capital corporation located in a zone within a town with a popu-
lation of more than twenty-five thousand, until such corporation has
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accumulated at least two hundred thousand dollars in capital stock. No
loan or investment in any business firm shall be made by an empire zone
capital corporation located in a zone within a town with a population of
less than twenty-five thousand until such corporation has accumulated at
least one hundred thousand dollars in capital stock. A zone capital
corporation shall submit to the zone board an annual report on its
activities.
(d) The total amount of tax credits available to each zone pursuant to
subdivision twenty of section two hundred ten, subsection (l) of section
six hundred six, subsection (d) of section fourteen hundred fifty-six
and subdivision (h) of section fifteen hundred eleven of the tax law,
shall be two million five hundred thousand dollars, (provided, however,
that in no event shall the credits available in any zone exceed five
hundred thousand dollars in the case of qualified investments in certi-
fied zone businesses as described in such subdivisions and subsections).
Apportionment of credits within a zone between capital investments in
and contributions to zone capital corporations, direct investments in
certified zone businesses or contributions to community development
projects will be determined and accounted for by the local zone adminis-
trative board in consultation with the zone administrative entity,
subject to regulations promulgated by the commissioner of the department
of economic development. Credits not used by a zone within four years of
their apportionment may, after a public hearing, be reallocated pursuant
to regulations promulgated by the commissioner. Certifications under
subdivision twenty of section two hundred ten, subsection (l) of section
six hundred six, subsection (d) of section fourteen HUNDRED fifty-six
and subdivision (h) of section fifteen hundred eleven of the tax law
shall be consistent with the provisions of this subdivision.
S 7. Section 964 of the general municipal law is amended by adding a
new subdivision (g) to read as follows:
(G) AN EMPIRE ZONE CAPITAL CORPORATION MAY BE CREATED AS A LIMITED
LIABILITY COMPANY, AS DEFINED IN SECTION ONE HUNDRED TWO OF THE LIMITED
LIABILITY COMPANY LAW.
S 8. The general municipal law is amended by adding a new section
958-a to read as follows:
S 958-A. CITY EMPIRE ZONE DESIGNATION. NOTWITHSTANDING ANY OTHER
PROVISION OF THIS ARTICLE, THE ENTIRE AREA OF EVERY CITY WITH A POPU-
LATION OF LESS THAN ONE MILLION SHALL BE DESIGNATED AS AN EMPIRE ZONE,
WITH ALL OF THE BENEFITS WHICH ACCRUE TO SUCH ZONES, EXCLUDING ANY PART
OF SUCH CITY WHICH IS PART OF AN EXISTING EMPIRE ZONE. THE ENTIRE AREA
OF AN EMPIRE ZONE ESTABLISHED PURSUANT TO SECTION NINE HUNDRED
FIFTY-EIGHT OF THIS ARTICLE WHICH IS LOCATED EITHER IN WHOLE OR IN PART
WITHIN SUCH CITIES SHALL BE DESIGNATED AS AN ENHANCED EMPIRE ZONE. THE
TAX BENEFITS PROVIDED TO BUSINESSES WITHIN AN ENHANCED EMPIRE ZONE SHALL
BE EQUAL TO ONE HUNDRED FIFTY PERCENT OF BENEFITS PROVIDED TO BUSINESSES
IN EMPIRE ZONES UNDER THE TAX LAW.
S 9. The general municipal law is amended by adding a new article 2-A
to read as follows:
ARTICLE 2-A
MUNICIPAL COOPERATION PROGRAM
SECTION 25. MUNICIPAL COOPERATION PROGRAM.
S 25. MUNICIPAL COOPERATION PROGRAM. 1. THERE ARE HEREBY ESTABLISHED A
STATE CONFERENCE ON MUNICIPAL COOPERATION AND EIGHT REGIONAL COMMISSIONS
ON MUNICIPAL COOPERATION. THE REGIONAL COMMISSIONS SHALL BE AS FOLLOWS
AND SHALL CONSIST OF THE FOLLOWING COUNTIES:
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(A) LONG ISLAND - NEW YORK: BRONX, KINGS, NASSAU, NEW YORK, QUEENS,
RICHMOND AND SUFFOLK.
(B) HUDSON VALLEY: DUTCHESS, ORANGE, PUTNAM, ROCKLAND, SULLIVAN,
ULSTER AND WESTCHESTER.
(C) CAPITAL: COLUMBIA, GREENE, ALBANY, SCHOHARIE, RENSSELAER, SCHENEC-
TADY, MONTGOMERY, FULTON, SARATOGA AND WASHINGTON.
(D) NORTH COUNTRY: WARREN, ESSEX, CLINTON, FRANKLIN, HAMILTON, SAINT
LAWRENCE, LEWIS, OSWEGO AND JEFFERSON.
(E) CENTRAL - MOHAWK VALLEY: OTSEGO, HERKIMER, ONEIDA, MADISON, CORT-
LAND, ONONDAGA AND CAYUGA.
(F) SOUTHERN TIER: DELAWARE, BROOME, CHENANGO, TIOGA, TOMPKINS,
SCHUYLER, CHEMUNG, ALLEGANY AND STEUBEN.
(G) FINGER LAKES: WAYNE, SENECA, YATES, ONTARIO, LIVINGSTON AND
MONROE.
(H) WESTERN: CATTARAUGUS, CHAUTAUQUA, ERIE, WYOMING, GENESEE, ORLEANS
AND NIAGARA.
2. (A) THE STATE CONFERENCE ON MUNICIPAL COOPERATION SHALL CONSIST OF
NINE MEMBERS. THE SECRETARY OF STATE SHALL BE A MEMBER OF THE CONFER-
ENCE AND SHALL SERVE AS ITS CHAIR. THE VICE CHAIR OF EACH REGIONAL
COMMISSION SHALL SERVE AS A MEMBER OF THE STATE CONFERENCE ON MUNICIPAL
COOPERATION.
(B) THE STATE CONFERENCE SHALL ALLOCATE FUNDS PURSUANT TO THIS SECTION
TO EACH REGIONAL COMMISSION. THE STATE CONFERENCE SHALL PROMULGATE ANY
RULES AND REGULATIONS NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS
SECTION; HOWEVER SUCH RULES AND REGULATIONS, AND ANY CHANGES THERETO
SHALL NOT TAKE EFFECT UNTIL APPROVED BY A MAJORITY VOTE OF THE GOVERNOR,
TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF THE ASSEMBLY, MINORITY
LEADER OF THE SENATE AND MINORITY LEADER OF THE ASSEMBLY.
3. (A) EACH REGIONAL COMMISSION SHALL CONSIST OF NINE MEMBERS,
APPOINTED AS FOLLOWS:
(I) TWO MEMBERS SHALL BE APPOINTED BY THE GOVERNOR, ONE OF WHOM SHALL
BE THE CHAIR OF THE REGIONAL COMMISSION AND THE OTHER SHALL SERVE AS
VICE CHAIR,
(II) TWO MEMBERS SHALL BE APPOINTED BY THE TEMPORARY PRESIDENT OF THE
SENATE,
(III) TWO MEMBERS SHALL BE APPOINTED BY THE SPEAKER OF THE ASSEMBLY,
(IV) ONE MEMBER SHALL BE APPOINTED BY THE MINORITY LEADER OF THE
SENATE,
(V) ONE MEMBER SHALL BE APPOINTED BY THE MINORITY LEADER OF THE ASSEM-
BLY, AND
(VI) ONE MEMBER SHALL BE APPOINTED BY THE STATE COMPTROLLER.
(B) EACH REGIONAL COMMISSION MAY CONDUCT BUSINESS WITH A QUORUM OF
MEMBERS IN OFFICE AT THE TIME.
(C) EACH MEMBER OF A REGIONAL COMMISSION SHALL SERVE AT THE PLEASURE
OF HIS OR HER APPOINTING AUTHORITY.
(D) MEMBERS OF REGIONAL COMMISSIONS SHALL RECEIVE NO COMPENSATION FOR
THEIR SERVICE BUT SHALL BE ALLOWED THEIR ACTUAL AND NECESSARY EXPENSES
INCURRED IN THE PERFORMANCE OF THEIR DUTIES.
(E) EVERY MEMBER OF A REGIONAL COMMISSION SHALL RESIDE WITHIN THE
REGION REGULATED BY THE REGIONAL COMMISSION UPON WHICH HE OR SHE SERVES.
(F) EVERY MEMBER OF A REGIONAL COMMISSION WHO IS AN ELECTED OFFICIAL
SHALL RECUSE HIMSELF OR HERSELF FROM ANY MEETING OF THE COMMISSION DEAL-
ING DIRECTLY WITH AN ISSUE IMPACTING UPON THE MUNICIPALITY WHICH ELECTED
SUCH MEMBER.
(G) A TWO-THIRDS MAJORITY OF EACH REGIONAL COMMISSION SHALL APPOINT AN
EXECUTIVE DIRECTOR, WHO SHALL CONDUCT THE BUSINESS OF SUCH REGIONAL
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COMMISSION UNDER THE SUPERVISION OF THE REGIONAL COMMISSION. THE EXECU-
TIVE DIRECTOR SHALL ALSO BE AUTHORIZED TO HIRE SUCH ADDITIONAL STAFF AS
NECESSARY TO EXECUTE THE WORK OF THE REGIONAL COMMISSION. THE EXECUTIVE
DIRECTOR MAY BE REMOVED ONLY BY A THREE-QUARTERS VOTE OF THE MEMBERS OF
THE REGIONAL COMMISSION.
(H) THE PURPOSE OF THE REGIONAL COMMISSIONS SHALL BE TO:
(I) INCREASE COMMUNICATION BETWEEN LOCAL GOVERNMENTS TO DISCUSS SHARED
SERVICES, CONSOLIDATION, AND THE MERGER OF LOCAL GOVERNMENTS,
(II) PROVIDE TECHNICAL AND FINANCIAL ASSISTANCE AND TRAINING TO LOCAL
GOVERNMENTS, AND
(III) IDENTIFY STATE AND LOCAL LAWS WHICH MUST BE CHANGED TO ACHIEVE
BUDGETARY AND PROPERTY TAX SAVINGS THROUGH SHARING ARRANGEMENTS.
(I) THE REGIONAL COMMISSIONS MAY AWARD GRANTS TO LOCAL GOVERNMENTS
WHICH SEEK TO WORK TOGETHER TO ACHIEVE SAVINGS. EACH REGIONAL COMMISSION
SHALL PROVIDE GRANTS IN THE FOLLOWING MANNER: TWENTY PERCENT OF ALL
FUNDS AVAILABLE FOR THE PROVISION OF GRANTS SHALL BE USED FOR RESEARCH
GRANTS, TEN PERCENT FOR IMPLEMENTATION GRANTS, AND SEVENTY PERCENT FOR
COOPERATION REWARD GRANTS. A REGIONAL COMMISSION MAY ALTER THIS ALLO-
CATION WITH THE APPROVAL OF AT LEAST TWO-THIRDS OF ITS MEMBERS.
4. RESEARCH GRANTS. EACH REGIONAL COMMISSION SHALL SEEK TO PROVIDE THE
ASSISTANCE NECESSARY TO RESEARCH THE EFFICACY OF COOPERATIVE EFFORTS
BETWEEN LOCALITIES. IF SUCH RESEARCH IS BEYOND THE SCOPE OF THE COMMIS-
SION, THEN THE LOCALITIES MAY SEEK A FIFTY PERCENT MATCHING GRANT FROM
THE REGIONAL COMMISSION TO HIRE A PUBLIC, PRIVATE OR ACADEMIC ENTITY TO
CONDUCT SUCH RESEARCH. THE PROVISION OF ANY RESEARCH GRANT, AND THE
ENTITY WHICH SHALL CONDUCT THE RESEARCH, SHALL BE SUBJECT TO APPROVAL BY
THE REGIONAL COMMISSION.
5. IMPLEMENTATION GRANTS. MUNICIPALITIES WHICH HAVE CHOSEN TO EXECUTE
THE COOPERATIVE EFFORT, SHALL IDENTIFY COSTS OF IMPLEMENTING THE EFFORT
AND REQUEST A GRANT FROM THE REGIONAL COMMISSION. COSTS ELIGIBLE FOR
GRANTS MAY INCLUDE, BUT SHALL NOT BE LIMITED TO: EARLY RETIREMENT OR
RESIGNATION INCENTIVES; PURCHASES OF BUILDINGS OR EQUIPMENT; OR HIRING
OF TEMPORARY EMPLOYEES TO ASSIST IN CONSOLIDATION. SUCH GRANTS SHALL BE
SUBJECT TO APPROVAL BY THE REGIONAL COMMISSION. IMPLEMENTATION GRANTS
SHALL BE AWARDED IN THE FOLLOWING MANNER:
(A) GRANTS TO FUND THE CONSOLIDATION OF SERVICES BETWEEN MUNICI-
PALITIES OR THE PROVISION OF SERVICES FROM ONE MUNICIPALITY TO ANOTHER.
SUCH GRANTS SHALL EQUAL FIFTY PERCENT OF THE COSTS ASSOCIATED WITH SUCH
MERGER OR CONSOLIDATION; AND
(B) GRANTS TO FUND MERGERS BETWEEN MUNICIPALITIES. SUCH GRANTS SHALL
NOT EXCEED ONE HUNDRED PERCENT OF THE COSTS ASSOCIATED WITH SUCH MERGER.
6. COOPERATION REWARD GRANTS. (A) THE REGIONAL COMMISSION MAY AWARD
GRANTS TO MUNICIPALITIES WHICH HAVE ELECTED TO EXECUTE A COOPERATIVE
EFFORT. MUNICIPALITIES WHICH HAVE ELECTED TO EXECUTE A COOPERATIVE
EFFORT SHALL IDENTIFY ONE OF THE PARTICIPATING MUNICIPALITIES, WHICH
SHALL ACT AS A LEAD AGENT, WHICH SHALL IDENTIFY THE SAVINGS WHICH ARE
EXPECTED TO ACCRUE TO THE MUNICIPALITIES AND REQUEST A GRANT IN THE
AMOUNT DETERMINED PURSUANT TO THIS SUBDIVISION, AND SUBMIT A REPORT TO
THEIR REGIONAL COMMISSION, WHICH SHALL BE REVIEWED AND ADJUSTED ACCORD-
INGLY BY THE REGIONAL COMMISSION. AT THAT TIME, THE REGIONAL COMMISSION
MAY APPROVE OR REJECT THE GRANT APPLICATION ACCORDING TO APPLICABLE
PROVISIONS OF THIS SECTION AND ANY APPLICABLE RULES OR REGULATIONS WHICH
MAY BE PROMULGATED BY THE STATE CONFERENCE AND APPROVED BY MAJORITY VOTE
OF THE GOVERNOR AND LEGISLATIVE LEADERS.
(B) IF APPROVED, AFTER THE END OF THE FIRST YEAR OF THE CONSOLIDATION,
THE LEAD AGENT SHALL PRODUCE A REPORT WHICH SHALL STATE THE SAVINGS
A. 10914 10
WHICH THE MUNICIPALITIES HAVE EXPERIENCED DURING THE YEAR. THAT REPORT
SHALL BE SUBMITTED TO THEIR REGIONAL COMMISSION, WHICH SHALL VALIDATE
THE SAVINGS WHICH HAVE ACCRUED TO THE LOCALITIES. SUCH SAVINGS WILL BE
CALCULATED BY COMPARING THE TOTAL AMOUNT SPENT FOR SERVICES WHICH HAVE
BEEN CONSOLIDATED WITH THE PROJECTED COST OF THE SERVICES WHICH HAVE
BEEN CONSOLIDATED IF THE CONSOLIDATION HAD NOT OCCURRED, IN THE CASE OF
FUNCTIONAL CONSOLIDATIONS; OR THE COMBINED BUDGETS OF THE MERGED MUNICI-
PALITY, WITH THE COMBINED BUDGETS OF THE MUNICIPALITIES WHICH HAVE BEEN
MERGED IF THE MERGER HAD NOT OCCURRED, IN THE CASE OF MERGERS.
(C) THE REGIONAL COMMISSION SHALL CERTIFY THE VALIDITY OF THE SAVINGS
IDENTIFIED BY THE LEAD AGENT. REGIONAL COMMISSIONS MAY REQUEST THE
ASSISTANCE OF THE STATE COMPTROLLER TO VALIDATE THE SAVINGS. AFTER SUCH
SAVINGS ARE VALIDATED, THE GRANT MAY BE REWARDED TO THE MUNICIPALITIES
IN AN AMOUNT DETERMINED PURSUANT TO THIS SUBDIVISION.
(D) SUCH PROCESS SHALL BE REPEATED EACH YEAR, FOR A PERIOD OF FIVE
YEARS IN THE CASE OF FUNCTIONAL CONSOLIDATIONS AND SEVEN YEARS IN THE
CASE OF MERGERS.
(E) COOPERATION REWARD GRANTS SHALL BE DETERMINED ON THE FOLLOWING
BASIS:
(I) GRANTS TO REWARD FUNCTIONAL CONSOLIDATION, I.E., CONSOLIDATION OF
SERVICES BETWEEN MUNICIPALITIES. SUCH GRANTS SHALL EQUAL FIFTY PERCENT
OF THE IDENTIFIED AND VALIDATED SAVINGS ASSOCIATED WITH SUCH CONSOL-
IDATION, AND
(II) GRANTS TO REWARD MERGERS BETWEEN MUNICIPALITIES. SUCH GRANTS
SHALL NOT EXCEED ONE HUNDRED PERCENT OF THE IDENTIFIED AND VALIDATED
SAVINGS ASSOCIATED WITH SUCH MERGER.
7. COOPERATION EFFORTS. NO PROVISION OF THIS ARTICLE SHALL PRECLUDE A
SCHOOL DISTRICT OR SPECIAL TAX DISTRICT FROM PARTICIPATING IN CONSOL-
IDATION OR MERGER EFFORTS OR ACTIVITIES.
S 10. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.