senate Bill S6181

Signed By Governor
2013-2014 Legislative Session

Relates to the dissolution of the Montgomery, Otsego, Schoharie solid waste management authority; repealer

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Archive: Last Bill Status - Signed by Governor


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Apr 11, 2014 signed chap.18
Apr 02, 2014 delivered to governor
Mar 24, 2014 returned to senate
passed assembly
ordered to third reading cal.506
substituted for a8406
Mar 20, 2014 referred to ways and means
delivered to assembly
passed senate
Feb 26, 2014 advanced to third reading
Feb 11, 2014 2nd report cal.
Feb 10, 2014 1st report cal.160
Jan 08, 2014 referred to corporations, authorities and commissions

Votes

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Feb 10, 2014 - Corporations, Authorities and Commissions committee Vote

S6181
6
0
committee
6
Aye
0
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
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Corporations, Authorities and Commissions Committee Vote: Feb 10, 2014

Co-Sponsors

S6181 - Bill Details

See Assembly Version of this Bill:
A8406
Law Section:
Public Authorities Law
Laws Affected:
Amd §§2041-a & 2041-w, rpld §2041-b sub 6, Pub Auth L

S6181 - Bill Texts

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Relates to the dissolution of the Montgomery, Otsego, Schoharie solid waste management authority; provides for the appraisal and distribution of assets and liabilities among the counties.

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BILL NUMBER:S6181

TITLE OF BILL: An act to amend the public authorities law, in
relation to the Montgomery, Otsego, Schoharie county solid waste
management authority; and repealing certain provisions of such law
relating thereto

PURPOSE:

To dissolve a tri-county solid waste authority at the request of its
component counties and the authority

SUMMARY OF PROVISIONS:

Amends section 2041-w of the public authorities law to authorize the
dissolution of the MOS solid waste management authority ("MOSA").
Further provides a plan for the distribution of the authority's assets
and liabilities among the authority's component counties and
authorizes payment of the authority's outstanding claims and accounts
by the directors.

EXISTING LAW:

In 1987, legislation was enacted into law creating a tri-county solid
waste authority for Montgomery, Otsego and Schoharie Counties; at
their request. The law was amended in 2012 to authorize one component
county, upon its request, to withdraw from the authority.

JUSTIFICATION:

The MOS solid waste authority (MOSA) was created by the legislature as
a home rule request of three counties at a time when solid waste
management was a growing state and even national concern. National
news of the floating 'garbage barge,' the press for closure of old and
leaking sanitary landfills, scarcity of new landfills and disposal
options, new markets for recycling, and the soaring cost of waste
disposal and state policy all strongly influenced some local
governments to contemplate regional solutions to solid waste
management. MOSA was an effort for more than two decades to create a
cost effective and forward-thinking partnership among three adjacent
counties for the disposal of their solid waste, closure of landfills
within the three counties, and management of their recyclable
materials.

In subsequent years, dissension arose over the authority's management
and costs. A critical audit by the state authorities budget office
(ABO), the distribution of the authority's costs pursuant to a user
agreement, lack of flow control, and other options encouraged at least
one of the authority's component counties to evaluate its options,
resulting in chapter 7 of the laws of 2012, which authorized Otsego
County to withdraw its membership. The service agreement governing the
three counties' participation in, and funding of, the MOS Authority,
expires in April 2014. As of that date, the authority will no longer
be able to ensure that waste generated within its component counties
flow to its transfer stations, thus destabilizing the authority's
revenue stream.


The counties believe, each and upon their own motions, that the
purposes of the original partnership, and for which MOSA was
established, have been fulfilled and that the authority is no longer
necessary.

The three component counties, by individually adopted resolutions, and
the authority itself, have requested this home rule legislation that
would dissolve the authority and establish procedures for the
distribution of its assets and assumption of any liabilities.

LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

None to the state

EFFECTIVE DATE:

Immediate

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

                                  6181

                            I N  S E N A T E

                               (PREFILED)

                             January 8, 2014
                               ___________

Introduced  by  Sens. SEWARD, TKACZYK -- read twice and ordered printed,
  and when printed to be committed to  the  Committee  on  Corporations,
  Authorities and Commissions

AN  ACT to amend the public authorities law, in relation to the Montgom-
  ery, Otsego, Schoharie county solid waste  management  authority;  and
  repealing certain provisions of such law relating thereto

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

  Section 1. Subdivision 2 of section 2041-a of the  public  authorities
law,  as  amended by chapter 7 of the laws of 2012, is amended and a new
subdivision 2-a is added to read as follows:
  2. "Authority" shall mean the public benefit  corporation  created  by
section two thousand forty-one-b of this title, known as the Montgomery,
Otsego, Schoharie solid waste management authority. [If and at such time
that  Otsego  county terminates its membership in the authority pursuant
to section two thousand forty-one-w of this title, the "authority" shall
be known as the Montgomery-Schoharie solid  waste  management  authority
and  Otsego county would no longer be considered one of the "participat-
ing counties" for the purposes of this title.]
  2-A. "AUTHORITIES BUDGET OFFICE" SHALL  MEAN  THE  INDEPENDENT  ENTITY
WITHIN  THE  DEPARTMENT OF STATE ESTABLISHED PURSUANT TO SECTION FOUR OF
THIS CHAPTER.
  S 2. Subdivision 6 of section 2041-b of the public authorities law  is
REPEALED.
  S 3. Section 2041-w of the public authorities law, as amended by chap-
ter 7 of the laws of 2012, is amended to read as follows:
  S 2041-w. [Withdrawal of Otsego county] DISSOLUTION.  1. Notwithstand-
ing  any  provision  of  law  to  the contrary, [Otsego county is hereby
authorized to terminate its membership in] the Montgomery, Otsego, Scho-
harie county solid waste management authority[; provided, however,  that
Otsego  county  shall  fulfill its obligations and responsibilities, and
terminate such membership, as may be required  by  and  consistent  with
existing or hereafter-entered superseding agreements between the author-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13283-01-4

S. 6181                             2

ity,  and  the counties of Montgomery, Otsego, and Schoharie, and become
effective upon approval of a  resolution  by  a  majority  of  the  duly
constituted  membership  of  the Otsego county board of representatives,
filed  with the authority and the legislative board clerks of the compo-
nent counties.
  2. The authority and the counties of Montgomery, Otsego and  Schoharie
shall  execute a plan for Otsego county's assumption of its proportional
and equitable share of  the  authority's  assets  and  liabilities.  For
purposes  of  this  section,  "proportional  and  equitable share of the
authority's assets and liabilities" shall be  based  on  the  allocation
percentages  specified  in  the "Post Closure Monitoring and Maintenance
Agreement", dated December nineteenth, two thousand nine,  entered  into
between  the Montgomery, Otsego, Schoharie county solid waste management
authority and the three counties.  Assets  shall  include,  but  not  be
limited  to,  the  authority's reserve and operating funds and rights to
the use of any Montgomery, Otsego, Schoharie county solid waste  manage-
ment  authority  operated  transfer stations in Otsego county subject to
the conditions held by the respective owners of the properties] SHALL BE
DISSOLVED ON A DATE ESTABLISHED BY RESOLUTION ADOPTED UPON A VOTE  OF  A
MAJORITY OF THE BOARD OF DIRECTORS OF SAID AUTHORITY. IN ANY SUCH RESOL-
UTION,  THE DATE OF DISSOLUTION SHALL NOT OCCUR PRIOR TO THE TERMINATION
OF THE "SERVICE AGREEMENT" DATED AS OF MAY FIRST, NINETEEN  EIGHTY-NINE,
AS  AMENDED  BY AMENDMENT NO. 1 DATED AS OF MAY FIRST, TWO THOUSAND TEN,
BY AND BETWEEN THE COUNTIES OF MONTGOMERY, OTSEGO AND SCHOHARIE AND  THE
AUTHORITY, NOR LATER THAN OCTOBER FIRST, TWO THOUSAND FOURTEEN. UPON THE
ADOPTION OF SUCH RESOLUTION, THE BOARD OF DIRECTORS SHALL MAKE PROVISION
FOR  THE  WINDING DOWN OF THE BUSINESS AND AFFAIRS OF THE AUTHORITY, AND
SHALL DISTRIBUTE THE ASSETS AND LIABILITIES  OF  THE  AUTHORITY  TO  THE
MEMBER  COUNTIES  AS  OF  A  TRANSFER  DATE  OR DATES ESTABLISHED BY THE
AUTHORITY, WHICH SHALL BE ON OR PRIOR TO THE DATE OF DISSOLUTION, ALL IN
ACCORDANCE WITH SUBDIVISIONS TWO AND THREE OF THIS SECTION.
  2. IN DISTRIBUTION OF THE ASSETS AND LIABILITIES OF THE  AUTHORITY  TO
THE MEMBER COUNTIES, THE FOLLOWING TRANSACTIONS SHALL OCCUR:
  (A) THE AUTHORITY SHALL CONVEY, AND THE COUNTIES OF MONTGOMERY, OTSEGO
AND  SCHOHARIE, RESPECTIVELY, SHALL ACCEPT, ALL OF THE AUTHORITY'S RIGHT
TITLE AND INTEREST IN THE REAL  PROPERTY,  STRUCTURES  AND  IMPROVEMENTS
CONSTITUTING THE TRANSFER STATIONS OWNED BY THE AUTHORITY, INCLUDING BUT
NOT  LIMITED  TO  ANY  AND  ALL  PERMITS AND LICENSES ATTENDANT THERETO,
ACCORDING TO THE FOLLOWING DISTRIBUTION,  WITHOUT  REGARD  TO  APPRAISED
VALUE  AND  WITHOUT  OTHER  CONSIDERATION  EXCEPT  AS  SET FORTH IN THIS
SECTION.
  (I) TO THE COUNTY OF MONTGOMERY, THE TRANSFER STATIONS  KNOWN  AS  THE
WESTERN TRANSFER STATION LOCATED AT 4583 ROUTE 5S IN SPRAKERS, N.Y., AND
THE  AMSTERDAM  TRANSFER  STATION LOCATED AT 1247 ROUTE 5S IN AMSTERDAM,
N.Y.;
  (II) TO THE COUNTY OF OTSEGO,  THE  TRANSFER  STATIONS  KNOWN  AS  THE
NORTHERN  TRANSFER  STATION LOCATED AT 5802 STATE HIGHWAY 28 IN COOPERS-
TOWN, N.Y., AND THE ONEONTA TRANSFER STATION LOCATED AT 75 SILAS LANE IN
ONEONTA, N.Y.; AND
  (III) TO THE COUNTY OF SCHOHARIE THE TRANSFER  STATION  KNOWN  AS  THE
SCHOHARIE  TRANSFER  STATION LOCATED AT 2805 ROUTE 7 IN COBLESKILL, N.Y.
TOGETHER WITH THE BALANCE OF THE REAL PROPERTY OWNED BY THE AUTHORITY AT
SUCH LOCATION, INCLUDING BUT NOT LIMITED TO  THE  ADMINISTRATIVE  OFFICE
BUILDING OF THE AUTHORITY LOCATED ADJACENT TO SAID TRANSFER STATION.
  (B) CONCURRENTLY WITH THE CONVEYANCE OF TITLE TO THE REAL PROPERTY AND
IMPROVEMENTS DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION, THE AUTHOR-

S. 6181                             3

ITY  SHALL CONVEY, AND THE COUNTIES OF MONTGOMERY, OTSEGO AND SCHOHARIE,
RESPECTIVELY, SHALL ACCEPT, WITH RESPECT TO EACH SUCH TRANSFER  STATION,
ALL OF THE AUTHORITY'S RIGHT TITLE AND INTEREST IN THE MOVEABLE FIXTURES
AND EQUIPMENT LOCATED AT, AND ATTENDANT TO, THE OPERATION OF SUCH TRANS-
FER  STATIONS. THE INVENTORY OF MOVEABLE FIXTURES AND EQUIPMENT PREPARED
BY THE AUTHORITY AS OF NOVEMBER FOURTH, TWO  THOUSAND  THIRTEEN  AND  ON
FILE WITH THE CLERK OF EACH COUNTY, UNLESS OTHERWISE AGREED BY THE COUN-
TIES,  SHALL BE THE BASIS FOR SUCH TRANSFERS, SUBJECT TO ORDINARY USE BY
THE AUTHORITY PRIOR TO THE TRANSFER DATE. ON THE WRITTEN REQUEST OF  ANY
OF THE COUNTIES, MADE NOT LATER THAN FIFTEEN DAYS AFTER THE FIRST OF THE
CONVEYANCES DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION, THE AUTHORI-
TIES  BUDGET  OFFICE  SHALL  DESIGNATE A MEDIATOR AND/OR AN APPRAISER TO
EXAMINE THE DISTRIBUTION OF MOVEABLE FIXTURES AND EQUIPMENT AT  EACH  OF
THE  TRANSFER  STATIONS, WHICH MEDIATOR OR APPRAISER SHALL BE AUTHORIZED
TO ORDER A MORE EQUITABLE DISTRIBUTION OF  SUCH  MOVEABLE  FIXTURES  AND
EQUIPMENT,  TO  ENSURE  THAT  EACH SUCH TRANSFER STATION IS FUNCTIONALLY
CAPABLE OF CONTINUING OPERATIONS AFTER THE AUTHORITY CEASES PROVISION OF
SOLID WASTE  SERVICES.  ANY  SUCH  ORDER  ISSUED  BY  SUCH  MEDIATOR  OR
APPRAISER SHALL BE FINAL AND BINDING ON EACH OF THE COUNTIES.
  (C) THE AUTHORITY SHALL CONVEY, AND THE COUNTIES OF MONTGOMERY, OTSEGO
AND  SCHOHARIE SHALL ACCEPT, IN COMMON OWNERSHIP, ALL OF THE AUTHORITY'S
RIGHT TITLE AND INTEREST IN THE REAL PROPERTY, STRUCTURES  AND  IMPROVE-
MENTS  CONSTITUTING  THE  LANDFILLS  MORE  FULLY  DESCRIBED IN THE "POST
CLOSURE MONITORING AND MAINTENANCE AGREEMENT" DATED DECEMBER TENTH,  TWO
THOUSAND  NINE,  ENTERED  INTO BETWEEN THE MONTGOMERY, OTSEGO, SCHOHARIE
COUNTY SOLID WASTE MANAGEMENT AUTHORITY AND THE THREE COUNTIES, TOGETHER
WITH ALL MONIES HELD BY THE AUTHORITY IN THE LANDFILL OPERATING  ACCOUNT
AND  THE AUTHORITY'S INTEREST IN THE POST CLOSURE RESERVE ACCOUNT ESTAB-
LISHED PURSUANT TO SAID AGREEMENT. FROM AND AFTER THE TRANSFER OF  TITLE
TO THE LANDFILLS FROM THE AUTHORITY TO THE COUNTIES, THE AUTHORITY SHALL
HAVE  NO  FUTURE  OBLIGATION  AND RESPONSIBILITY UNDER SAID POST CLOSURE
MONITORING AND MAINTENANCE AGREEMENT, WHICH  RESPONSIBILITIES  SHALL  BE
ASSUMED BY THE COUNTIES.
  (D) CONCURRENTLY WITH THE CONVEYANCE OF TITLE TO THE REAL PROPERTY AND
IMPROVEMENTS DESCRIBED IN PARAGRAPH (C) OF THIS SUBDIVISION, THE AUTHOR-
ITY  SHALL  CONVEY, AND THE COUNTIES OF MONTGOMERY, OTSEGO AND SCHOHARIE
SHALL ACCEPT IN COMMON OWNERSHIP, WITH RESPECT TO  EACH  SUCH  LANDFILL,
ALL OF THE AUTHORITY'S RIGHT TITLE AND INTEREST IN THE MOVEABLE FIXTURES
AND  EQUIPMENT LOCATED AT, AND ATTENDANT TO, THE MONITORING, MAINTENANCE
AND OTHER POST-CLOSURE ACTIVITIES REQUIRED AT SUCH LANDFILLS BY LAW. THE
INVENTORY OF MOVEABLE FIXTURES AND EQUIPMENT REFERRED  TO  IN  PARAGRAPH
(B)  OF  THIS SUBDIVISION SHALL BE THE BASIS FOR SUCH TRANSFERS, SUBJECT
TO ORDINARY USE BY THE AUTHORITY PRIOR TO THE TRANSFER DATE.
  (E) UPON THE COMPLETION OF THE PROPERTY TRANSFERS SET FORTH  IN  PARA-
GRAPHS  (A),  (B), (C) AND (D) OF THIS SUBDIVISION, BUT IN ANY EVENT NOT
LATER THAN OCTOBER FIRST, TWO THOUSAND FOURTEEN, ALL OTHER ASSETS OF THE
AUTHORITY, INCLUDING ALL OPERATING AND RESERVE FUNDS, SHALL BE  DISTRIB-
UTED  TO  THE MEMBER COUNTIES IN ACCORDANCE WITH THE ALLOCATION PERCENT-
AGES SPECIFIED IN THE "POST CLOSURE MONITORING  AND  MAINTENANCE  AGREE-
MENT", DATED DECEMBER TENTH, TWO THOUSAND NINE, ENTERED INTO BETWEEN THE
MONTGOMERY,  OTSEGO,  SCHOHARIE  COUNTY SOLID WASTE MANAGEMENT AUTHORITY
AND THE THREE COUNTIES, PROVIDED HOWEVER, THAT THE BOARD OF DIRECTORS OF
THE AUTHORITY SHALL BE AUTHORIZED TO SET ASIDE SUCH FUNDS AS ARE  NECES-
SARY  AND  PROPER  TO SETTLE, PAY, AND OTHERWISE RESOLVE ALL OUTSTANDING
ACCOUNTS, CLAIMS, AND OTHER LIABILITIES OF THE AUTHORITY  PRIOR  TO  THE
DATE  OF  DISSOLUTION,  AND  ANY  REMAINDER  SHALL BE DISTRIBUTED TO THE

S. 6181                             4

MEMBER COUNTIES PURSUANT TO THE ALLOCATION  ESTABLISHED  IN  THIS  PARA-
GRAPH;  AND PROVIDED FURTHER, THAT IN THE EVENT THAT ANY FUNDS SET ASIDE
BY THE BOARD OF DIRECTORS TO RESOLVE OUTSTANDING ACCOUNTS,  CLAIMS,  AND
OTHER  LIABILITIES  OF  THE AUTHORITY ARE INSUFFICIENT FOR SUCH PURPOSE,
THE COUNTIES SHALL BE RESPONSIBLE FOR THE PAYMENT OF  ANY  LAWFUL  OBLI-
GATIONS, ACCOUNTS, CLAIMS AND LIABILITIES OF THE AUTHORITY IN ACCORDANCE
WITH THE ALLOCATION PERCENTAGES SPECIFIED IN THE AFORESAID "POST CLOSURE
MONITORING AND MAINTENANCE AGREEMENT".
  (F)  NOTWITHSTANDING  ANY  OTHER PROVISION OF LAW TO THE CONTRARY, ALL
TRANSFERS PROVIDED FOR IN  THIS  SECTION  SHALL  BE  WITHOUT  REGARD  TO
APPRAISED  VALUE,  AND  WITHOUT OTHER CONSIDERATION. IT IS HEREBY DETER-
MINED THAT THE TRANSFERS OF PROPERTY PURSUANT TO THIS  SECTION  ARE  FOR
THE  BENEFIT  OF  THE PEOPLE OF THE PARTICIPATING COUNTIES AND THE STATE
AND ARE FOR A PUBLIC  PURPOSE.  THE  DISSOLUTION  OF  THE  AUTHORITY  AS
PROVIDED  IN  THIS  SECTION AND THE TRANSFERS OF PROPERTY AUTHORIZED AND
DIRECTED IN THIS SECTION SHALL BE DEEMED TO BE MINISTERIAL  ACTS  OF  AN
OFFICIAL NATURE, INVOLVING NO EXERCISE OF DISCRETION, WITHIN THE MEANING
OF  PARAGRAPH (II) OF SUBDIVISION FIVE OF SECTION 8-0105 OF THE ENVIRON-
MENTAL CONSERVATION LAW.
  3. UPON DISSOLUTION, THE BOOKS AND RECORDS OF THE AUTHORITY  SHALL  BE
DELIVERED  TO  THE CUSTODY OF THE COUNTY OF SCHOHARIE, AND SHALL BE MADE
AVAILABLE, AT REASONABLE TIMES, TO ANY RECEIVER  APPOINTED  PURSUANT  TO
THIS  SUBDIVISION  AND  TO AUTHORIZED REPRESENTATIVES OF THE COUNTIES OF
MONTGOMERY, OTSEGO AND SCHOHARIE ON REQUEST, AND  TO  OTHER  PERSONS  IN
ACCORDANCE  WITH  LAW.  THE FINANCES AND ACCOUNTS OF THE AUTHORITY AS OF
THE DATE OF DISSOLUTION SHALL BE THE SUBJECT OF  A  FINAL  AUDIT,  WHICH
SHALL  BE  SUBJECT  TO THE REVIEW AND APPROVAL OF THE AUTHORITIES BUDGET
OFFICE, AND ANY ACCOUNTS PAYABLE AND RECEIVABLE, AND ANY  CLAIMS,  OBLI-
GATIONS  OR  OTHER  LIABILITIES REMAINING UNSETTLED OR UNRESOLVED AT THE
DATE OF DISSOLUTION SHALL BE ASSIGNED TO A RECEIVER TO BE  APPOINTED  BY
THE  AUTHORITIES BUDGET OFFICE.  UNLESS OTHERWISE AGREED BY THE COUNTIES
AND THE AUTHORITIES BUDGET OFFICE, SUCH RECEIVER SHALL BE SELECTED  FROM
A  LIST  OF QUALIFIED PERSONS MAINTAINED BY THE OFFICE OF COURT ADMINIS-
TRATION AND THE COMPENSATION AND  CONDUCT  OF  SUCH  RECEIVER  SHALL  BE
GOVERNED BY THE RULES OF THE CHIEF JUDGE. SAID RECEIVER SHALL BE AUTHOR-
IZED TO PAY, COLLECT, SETTLE OR RESOLVE ALL SUCH ACCOUNTS, CLAIMS, OBLI-
GATIONS  AND LIABILITIES IN ACCORDANCE WITH LAW, AND TO DEFEND AND MAIN-
TAIN ACTIONS AT LAW WITH RESPECT THERETO IN THE NAME OF THE AUTHORITY.
  S 4. This act shall take effect immediately.

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