S T A T E   O F   N E W   Y O R K
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                                  7172

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                             April 14, 2011
                               ___________

Introduced  by  M.  of A. N. RIVERA, CAHILL, MAGNARELLI, COLTON, JAFFEE,
  CASTRO, P. RIVERA, STEVENSON, ROBERTS,  COOK,  ENGLEBRIGHT  --  Multi-
  Sponsored  by  --  M. of A. ARROYO, BARRON, BOYLAND, CAMARA, CASTELLI,
  CLARK, CRESPO, GOODELL, JEFFRIES, LINARES, MARKEY, MENG, MOYA,  RAMOS,
  J. RIVERA, RODRIGUEZ, SIMOTAS -- read once and referred to the Commit-
  tee on Environmental Conservation

AN ACT providing for the creation of a temporary state commission on the
  economic costs and benefits of hydraulic fracturing in New York state;
  and providing for the repeal of such provisions upon expiration there-
  of

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

  Section 1. A temporary state commission, to be known as the commission
on the economic costs and benefits of hydraulic fracturing in  New  York
state,  hereinafter  referred to as the commission, is hereby created to
examine, evaluate, make recommendations and to collect  data  concerning
the economic impact of hydraulic fracturing on the entire economy of New
York  state and the impact on local economies where hydraulic fracturing
will occur. Specifically, such data shall include at least  the  follow-
ing:
  (a)  the  impact  and costs to the housing sector including rental and
home ownership;
  (b) the impact on infrastructure including roads and bridges;
  (c) the impact on the environment;
  (d) the impact on costs to the state for the displacement of  individ-
uals and families from affected areas;
  (e)  the  projected  public  safety  costs  for municipalities housing
hydraulic operations; and
  (f) all foreseen costs to the state from allowing hydraulic fracturing
operations to  be  established,  maintained,  operated,  dismantled  and
decommissioned as well as run dry.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09978-03-1
              

A. 7172                             2

  S  2. The commission shall consist of fifteen members, to be appointed
as follows: seven members to be appointed by the governor; three members
to be appointed by the temporary  president  of  the  senate  and  shall
include at least one member of the Business Council of New York State or
the  Partnership  for New York city and one member of the Sierra Club or
the New York Public Interest Group; three members to be appointed by the
speaker of the assembly and shall include at least  one  member  of  the
Business  Council of New York State or the Partnership for New York City
and one member of the Sierra Club or the New York Public Interest Group;
one member to be appointed by the minority leader of the senate; and one
member to be appointed by the minority leader  of  the  assembly.    The
commission  shall be housed at and staffed by the New York state depart-
ment of economic development and of the  fifteen  appointed  members  at
least  one  representative  from  that  agency and each of the following
agencies; department of transportation, division of home  and  community
renewal, department of environmental conservation, the department of tax
and finance, and the office of temporary and disability assistance.  The
governor  shall  designate  the  chairperson and vice-chairperson of the
commission. Vacancies in the membership of the commission and among  its
officers  shall  be  filled in the manner provided for original appoint-
ments or designations.
  S 3. Members of the commission shall receive no compensation for their
services, but shall be  allowed  their  actual  and  necessary  expenses
incurred  in  the  performance of their duties hereunder. To the maximum
extent feasible, the commission shall be entitled to request and receive
and shall utilize and be provided with such facilities,  resources,  and
data  of  any court, department, division, board, bureau, commission, or
agency of the state or any political subdivision  thereof  as  it  deems
necessary or desirable to carry out properly its powers and duties here-
under.
  S  4.  The commission may employ and at pleasure remove such personnel
as it may deem necessary for the performance of its  functions  and  fix
their compensation within the amounts made available therefor.
  S  5. The commission may meet within and outside the state, shall hold
public hearings, and shall have all the powers of a legislative  commit-
tee pursuant to the legislative law.
  S  6. (a) The commission shall make and submit its findings, including
any recommendations for legislative action as it may deem necessary  and
appropriate  in a report to the governor, the temporary president of the
senate, the speaker of the assembly, the minority leader of  the  senate
and  the  minority  leader  of  the  assembly not later than one hundred
eighty days after it first convenes. Such report shall include:
  (1) the overall environmental and social impact of hydraulic  fractur-
ing in other states where the industry has been established;
  (2)  tax collection rates and tax schedules of those states which were
imposed on hydraulic fracturing operations; and
  (3) a comparison of the annual revenue collected  by  the  state  from
hydraulic  operations  to  costs incurred by those states in maintaining
and repairing infrastructure, cost to remedy  displacement  of  families
and individuals, cost of environmental damage and remediation, cost from
loss  of affordable housing due to demand for housing by hydraulic frac-
turing workforce, and any and all related costs to New York  state  that
will be incurred by hydraulic fracturing operations.
  (b) Recommendations included in such report shall include:
  (1) a tax structure for hydraulic fracturing firms and operations that
will  take  into  account  related costs to New York in order for policy

A. 7172                             3

makers to assess any potential tax collection benefits, if any, if full-
scale hydraulic fracturing is allowed to take place in New York;
  (2)  the projected potential number of total jobs created by hydraulic
fracturing;
  (3) the projected revenue from tax collection under  current  business
tax structure;
  (4) the projected number of housing units needed by new workforce; and
  (5)  the  recommended  amount  of  bonding and/or insurance needed for
hydraulic fracturing firms to cover potential  natural  and/or  environ-
mental disasters and/or accidents.
  S  7.  This  act  shall  take  effect  immediately;  provided that the
appointment of members to the New York state commission on the  economic
costs  and  benefits  of  hydraulic fracturing shall be completed within
thirty days of such effective date,  provided  further,  that  this  act
shall  remain  in  effect until thirty days after the commission submits
the report required by section six of this act, at which time  this  act
shall expire and be deemed repealed.