NY State Senate Bill 2009-S8263

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 18, 2010	referred to rules

2009-S8263 (ACTIVE) - Details

See Assembly Version of this Bill:: A11552
Current Committee:: Senate Rules
Law Section:: Environmental Conservation Law
Laws Affected:: Amd §§15-2109, 15-2137, 15-2139 & 15-2141, En Con L

2009-S8263 (ACTIVE) - Summary

Unconsolidates the Hudson River-Black River Regulating District into the Hudson River Regulating District and the Black River Regulating District.

2009-S8263 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S8263                REVISED 06/21/10

TITLE OF BILL:
An act to amend the environmental conservation law, in relation to
unconsolidating the Hudson River-Black River Regulating District into
the Hudson River Regulating District and the Black River Regulating
District

PURPOSE OR GENERAL IDEA OF BILL:
This bill will return the Hudson River Regulating District and the
Black River Regulating District to the separate status and existence
they had prior to their merger in 1959.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends section 15-2109 of the Environmental Conservation law
(ECL) to separate the boards of the Hudson River regulating district
and the Black River regulating district.

Section 2 amends Section 15-2137 of the ECL law to separate the
districts into two separate districts. It also amends the current
board structure and creates a separate and distinct Black River
regulating district board that shall consist of five members whom
shall be from the Black River area.

Section 3 amends Section 15-2139 of the ECL law transfers the
functions powers and duties are hereby transferred and assigned from

the joint Hudson River Black River to the appropriate individual
regulating districts.

Section 4 amends Section 15-2141 of the ECL law to require that the
general funds and debt service funds of the individual regulation
districts shall be kept separate and apart.

Section 5 sets out the effective date of the legislation.

JUSTIFICATION:
In 1959 the Hudson River Regulating District (HRRD)(established 1922)
was combined with the Black River Regulating District
(BRRD)(established 1919) creating the Hudson River-Black River
Regulating District (the Regulating District). The combined Regulating
District is a New York State public benefits corporation established
by the NYS legislature in Article 15, title 21 of the Environmental
Conservation law (ECL). By law, reflecting the wisdom of the
legislature at the time, the accounts of the two districts are
required to be separate.

The Black River and Hudson Rivers are separate and distinct as are the
positive and negative impacts that flow from their passage through New
York State. Similarly, the benefits and costs associated with the
regulation of these impacts by the regulating districts are separate
and distinct. Unique problems with respect to the method employed to
assess fees necessary to fund its operations have resulted in the
Hudson River Regulating District facing a dramatic and crippling
shortfall in revenues. After a federal court ruling eliminated its
ability to charge utility companies certain fees that made up a large
percentage of its budget the Board of the Regulating District


initiated a process set out in the ECL to charge the counties through
which the Hudson River flows flood-protection fees in order to fill
the HRRD budget shortfall. The affected counties have challenged this
decision and the HRRD faces years of protracted legal proceedings
before a new fee structure will be in place.

The revenue shortfall the Hudson River Regulating District is facing
is close to $4.0 million of its annual $5.4 million budget. The Black
River Regulating District is currently fiscally sound. In order for
the HRRD to make up for this shortfall, in the face of its inability
to assess the benefitted Hudson River counties, it proposed that the
HRRD borrow from the BRRD. The Office of the State Comptroller (OSC)
denied this request. In a letter dated October 23, 2009 to the Hudson
River-Black River Regulating District, the OSC stated that ECL.
§15-2141(1) requires that: moneys constituting the respective "general
fund" or "debt service fund" or other fund or funds of either the
Black River Regulating Board or District, shall remain and be kept
separate and apart and shall be applied for the cost of maintenance
and operation in the area of the appropriate district and to pay the
debts and obligations of the appropriate board or district, on whose
account such moneys were received.

Since the Comptroller denied this request, legislation (S.6918-B/
A.10785-A) has been introduced this session to authorize what current
law will not allow; the borrowing of monies between the two regulating
districts. But for the 1959 merger this scheme would never have been
considered. The reasoning of this legislation is akin to a financially
challenged water district in one county being allowed to drain money
from the coffers of a neighboring county's financially sound water
district. It is a widely accepted principal that the costs of
operating a benefit district should be borne by those who receive
benefits from that district, not those who do not live in, or are not
benefitted or served by the district.  Here the HRRD provides flood
control and other direct benefits to the counties through which the
Hudson River flows.

While it is unfortunate and certainly untimely, in light of New York
State's current fiscal crisis, for the HRRD to be facing such a
monumental shortfall, is not appropriate for the legislature to force
the BRRD to make the HRRD whole. This is particularly true when the
shortfalls are likely to continue well into the future as the legal
challenges to the HRRD proposed fee structure work their way through
the courts.  Black River communities and counties deserve to be
assured that a forced borrowing will not result in a financial crisis
for the Black River Regulating District similar to that facing the
Hudson River Regulating District.

This legislation would once again separate the two regulating
districts. It is clear that the Hudson River Regulating District needs
a long-term resolution to resolve its financial difficulties. A forced
borrowing from the financially sound Black River Regulating District
is not the answer.

But for the 1959 merger of the two districts borrowing from the Black
River Regulating District would not even be an option.

PRIOR LEGISLATIVE HISTORY:


New Bill.

FISCAL IMPLICATIONS:
None to the state.

EFFECTIVE DATE:
This act shall take effect on the thirtieth day after becoming a law.

2009-S8263 (ACTIVE) - Bill Text download pdf

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

                                  8263

                            I N  S E N A T E

                              June 18, 2010
                               ___________

Introduced by Sen. AUBERTINE -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN  ACT  to  amend  the  environmental  conservation law, in relation to
  unconsolidating the Hudson River-Black River Regulating District  into
  the  Hudson  River  Regulating District and the Black River Regulating
  District

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

  Section  1.  Subdivision  7  of  section  15-2109 of the environmental
conservation law is amended to read as follows:
  7. The [board] BOARDS of the  Hudson  [river-Black]  river  regulating
district AND THE BLACK RIVER REGULATING DISTRICT shall have the power to
contract  to  sell  water,  upon  such terms and conditions as [it] EACH
deems advisable to any or all  of  the  counties  of  Albany,  Columbia,
Essex,  Fulton,  Green,  Hamilton,  Rensselaer,  Saratoga,  Schenectady,
Warren  or  Washington,  which  counties  are  contained   within   such
[district] DISTRICTS.
  S  2.  Section 15-2137 of the environmental conservation law, subdivi-
sion 3 as amended by chapter 766 of the laws of 2005, is amended to read
as follows:
S 15-2137. [Hudson River-Black River Regulating District]  HUDSON  RIVER
             REGULATING   DISTRICT   AND   THE  BLACK  RIVER  REGULATING
             DISTRICT; old [boards] BOARD abolished; new [board]  BOARDS
             created.
  1.  The [Hudson River Regulating District and the Black River Regulat-
ing District created pursuant to this article  are  hereby  consolidated
into a single district, to include the areas of both such districts, and
to be known as the] Hudson River-Black River Regulating District CONSOL-
IDATED  PURSUANT  TO  THIS  ARTICLE  IS  HEREBY  UNCONSOLIDATED INTO TWO
DISTRICTS, THE HUDSON RIVER REGULATING  DISTRICT  AND  THE  BLACK  RIVER
REGULATING DISTRICT.
  2.  Except  as  hereinafter  provided,  the board of the Hudson [River
Regulating District and the board of the Black River Regulating District
are] RIVER-BLACK RIVER REGULATING DISTRICT IS hereby abolished, and  all

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

                                                           LBD17799-01-0

S. 8263                             2

of the jurisdiction, functions, powers, duties and obligations possessed
or  exercised  by,  or  for  which  commitments  have been made by, such
[boards] BOARD, including lands or  property  acquired,  moneys  of  the
boards, and actions taken or determinations made by such [boards] BOARD,
[are]  IS  hereby transferred to, assigned to and devolved, AS APPROPRI-
ATE, upon the Hudson [River-Black River Regulating District] RIVER REGU-
LATING DISTRICT, THE BLACK RIVER REGULATING DISTRICT and [its] THE board
OF EACH SUCH REGULATING DISTRICT.
  3. Notwithstanding any provision of titles 21, 23 and 25 of this arti-
cle, A. a board of the Hudson [River-Black  River  Regulating  District]
RIVER  REGULATING  DISTRICT is hereby created to consist of [seven] FIVE
members to be appointed by the governor [not less than  three]  EACH  of
whom  shall  be  [residents]  A RESIDENT of the territory comprising the
[Black River area and not less than three of whom shall be residents  of
the  territory  comprising the] Hudson [River] RIVER area. [The governor
shall appoint one member for a term ending September 1, 1960, one for  a
term  ending September 1, 1961, one for a term ending September 1, 1962,
one for a term ending September 1, 1963,  and  one  for  a  term  ending
September 1, 1964, and thereafter, on the expiration of their respective
terms of office, appointments]
  B. A BOARD OF THE BLACK RIVER REGULATING DISTRICT IS HEREBY CREATED TO
CONSIST  OF  FIVE  MEMBERS  TO BE APPOINTED BY THE GOVERNOR EACH OF WHOM
SHALL BE A RESIDENT OF THE TERRITORY COMPRISING THE BLACK RIVER AREA.
  C. APPOINTMENTS shall be made for terms of five years.  [The  governor
shall appoint two additional board members, each of whom shall serve for
a  term of five years from the effective date of his or her appointment;
provided, however, that the board members first appointed  on  or  after
the effective date of the chapter of the laws of two thousand five which
amended  this  subdivision shall serve an initial term of two years from
the effective date of such appointment.] The  governor  shall  fill  any
vacancy on such board within thirty days after it occurs for the remain-
der of the term of office.
  S  3. Section 15-2139 of the environmental conservation law is amended
to read as follows:
S 15-2139. Hudson [River Regulating District] RIVER REGULATING  DISTRICT
             and  Black  [River  Regulating  District]  RIVER REGULATING
             DISTRICT:   transfer  of  functions;  pending  actions  and
             proceedings;  interpretation  of documents; existing rights
             and remedies.
  1. Except as hereinafter provided, the contracts, books, maps,  plans,
papers,  records  and property of whatever description within the juris-
diction or under the control of the Hudson [River Regulating District or
the  Black  River  Regulating  District]  RIVER-BLACK  RIVER  REGULATING
DISTRICT,   including   moneys   appropriated   and  available  to  such
[districts] DISTRICT, pertaining to or used in connection with the exer-
cise or performance of the functions, powers and  duties  hereby  trans-
ferred  and  assigned,  shall  be SPLIT AND delivered to the APPROPRIATE
secretary of EITHER the board of the Hudson [River-Black River  Regulat-
ing  District]  RIVER  REGULATING  DISTRICT  OR  BLACK  RIVER REGULATING
DISTRICT, who is hereby authorized to take possession thereof.
  2. For the purposes of succession, the functions,  powers  and  duties
transferred,  assigned  to,  and  devolving upon the Hudson [River-Black
River Regulating District] RIVER REGULATING DISTRICT AND THE BLACK RIVER
REGULATING DISTRICT shall be deemed to constitute a continuation of such
functions, powers and duties exercised by the Hudson  [River  Regulating
District  and  the  Black  River  Regulating District] RIVER-BLACK RIVER

S. 8263                             3

REGULATING DISTRICT, and the acts, orders, rules, regulations and deter-
minations of such [districts] DISTRICT shall have,  and  continue  with,
the  same  force  and  effect  as  though  done by or made by the Hudson
[River-Black River Regulating District] RIVER REGULATING DISTRICT OR THE
BLACK RIVER REGULATING DISTRICT.
  3.  Any  business  or  matter heretofore undertaken or commenced by or
before the Hudson [River Regulating District or the Black River Regulat-
ing District] RIVER-BLACK RIVER REGULATING DISTRICT, or  any  action  or
proceeding  heretofore  brought by or against such [districts] DISTRICT,
pertaining to or connected with the functions, powers and duties  hereby
transferred  and  assigned  to  the Hudson [River-Black River Regulating
District] RIVER REGULATING  DISTRICT  AND  THE  BLACK  RIVER  REGULATING
DISTRICT may be conducted, completed, prosecuted and defended JOINTLY by
and  in  the  [name]  NAMES  of the Hudson [River-Black River Regulating
District] RIVER REGULATING  DISTRICT  AND  THE  BLACK  RIVER  REGULATING
DISTRICT.    In all such actions and proceedings the Hudson [River-Black
River Regulating District] RIVER REGULATING DISTRICT AND THE BLACK RIVER
REGULATING DISTRICT, upon application to the court, may  be  substituted
JOINTLY, as a party.
  4. When the Hudson [River Regulating District or the Black River Regu-
lating District] RIVER-BLACK RIVER REGULATING DISTRICT is referred to or
designated  in  any  law, contract or document, such reference or desig-
nation shall be deemed to refer to and include the  Hudson  [River-Black
River Regulating District] RIVER REGULATING DISTRICT AND THE BLACK RIVER
REGULATING DISTRICT so far as such law, contract or document pertains to
matters  which  are within [its] THE jurisdiction OF EITHER by reason of
such transfer and assignment of functions, powers and duties.
  5. No existing right or remedy of any  character  shall  be  lost,  or
affected  by  reason  of the provisions of sections 15-2137, 15-2139 and
15-2141 OF THIS TITLE.
  S 4. Section 15-2141 of the environmental conservation  law,  subdivi-
sion  2 as amended by chapter 55 of the laws of 1992, is amended to read
as follows:
S 15-2141. Hudson [River Regulating District] RIVER REGULATING  DISTRICT
             and  Black  [River  Regulating  District]  RIVER REGULATING
             DISTRICT: funds of the board.
  1. Notwithstanding the consolidation AND SUBSEQUENT UNCONSOLIDATION of
the Hudson [River Regulating District and  the  Black  River  Regulating
District] RIVER-BLACK RIVER REGULATING DISTRICT into [a single district]
TWO  DISTRICTS,  effectuated  by  this  title, or any other provision of
title 21 of this article, moneys constituting  the  respective  "general
fund" or "debt service fund" or other fund or funds of either the Hudson
[River  Regulating  Board] RIVER REGULATING BOARD or [District] DISTRICT
or  the  Black  [River  Regulating  Board]  RIVER  REGULATING  BOARD  or
[District]  DISTRICT,  shall  remain  and be kept separate and apart and
shall be applied for the cost of maintenance and operation in  the  area
of  the appropriate district and to pay the debts and obligations of the
appropriate board  or  district,  on  whose  account  such  moneys  were
received.
  2.  Notwithstanding  any  provision of sections 15-2137 and 15-2139 or
any other provision of title 21 of this article,  all  moneys  hereafter
received  by  the  Hudson  [River-Black River Regulating District] RIVER
REGULATING DISTRICT, THE BLACK RIVER REGULATING DISTRICT and [its]  EACH
board,  as  [consolidated]  UNCONSOLIDATED,  by reason of assessments or
from the sale of obligations issued or from other source,  all  for  the
purposes of the respective areas heretofore comprising the Hudson [River

S. 8263                             4

Regulating District] RIVER REGULATING DISTRICT or the Black [River Regu-
lating  District]  RIVER  REGULATING DISTRICT shall be kept separate and
apart and shall constitute "general funds" and "debt service funds"  and
other  fund  or funds with the same force and effect as funds heretofore
constituted by the Hudson  [River  Regulating  Board]  RIVER  REGULATING
BOARD  or  [District] DISTRICT and by the Black [River Regulating Board]
RIVER REGULATING BOARD or [District] DISTRICT and shall be applied sole-
ly for the cost of maintenance and operation  in  the  respective  areas
from which the moneys were received and to pay the debts and obligations
accrued  or  as  they  become due in the areas where the debts and obli-
gations were incurred, provided, [however,] that  the  expenses  of  the
[board]  RESPECTIVE BOARDS, as [consolidated by] UNCONSOLIDATED PURSUANT
TO this [part] TITLE, and of [its] THE officers  and  employees  THEREOF
shall  be  paid from the appropriate "general funds" in the same propor-
tion as moneys are annually collected from  the  respective  areas.  The
provisions  of section 15-2129, in so far as the same are applicable and
not inconsistent herewith, shall apply as they relate  to  the  "general
fund", "debt service fund", and to the fund or funds of the district.
  S  5.  This  act shall take effect on the thirtieth day after it shall
have become a law.

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Senate Bill S8263

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Archive: Last Bill Status - In Senate Committee Rules Committee

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2009-S8263 (ACTIVE) - Details

2009-S8263 (ACTIVE) - Summary

2009-S8263 (ACTIVE) - Sponsor Memo

2009-S8263 (ACTIVE) - Bill Text download pdf

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Sponsored By

Darrel J. Aubertine

Archive: Last Bill Status - In Senate Committee Rules Committee

Actions

2009-S8263 (ACTIVE) - Details

2009-S8263 (ACTIVE) - Summary

2009-S8263 (ACTIVE) - Sponsor Memo

2009-S8263 (ACTIVE) - Bill Text download pdf

Comments