Senate Bill S5476

2017-2018 Legislative Session

Authorizes the Hendrick Hudson central school district to establish an energy system tax stabilization reserve fund

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Archive: Last Bill Status - Stricken

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
Jan 08, 2018	recommit, enacting clause stricken
Jan 03, 2018	referred to education
Mar 30, 2017	referred to education

2017-S5476 (ACTIVE) - Details

Law Section:: Education

2017-S5476 (ACTIVE) - Summary

Authorizes the Hendrick Hudson central school district to establish an energy system tax stabilization reserve fund to lessen or prevent increases in school district real property tax levies resulting from the decrease in revenue to such school district due to the closure of the Indian Point nuclear power plant.

2017-S5476 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5476

 TITLE OF BILL :  An act to authorize the Hendrick Hudson central
school district to establish an energy system tax stabilization
reserve fund as the result of the closure of the Indian Point nuclear
power plant

 PURPOSE :

This bill will authorize the Hendrick Hudson central school district
to establish an energy system tax stabilization reserve fund

 SUMMARY OF PROVISIONS :

Section one establishes legislative findings.

Section two establishes definitions.

Section three authorizes the Hendrick Hudson central school district
to establish an energy system tax stabilization reserve fund to lesson
or prevent increase in the school district's real property tax levy
resulting from decreases in revenue due to the closure of the Indian
Point nuclear power plant. Establishment of such fund must be approved
by a majority vote of the voters present and voting on a separate
ballot proposition either at a special district meeting or at the
annual district meeting and election.

Section four establishes the effective date.

 JUSTIFICATION :

On January 9, 2017, Governor Cuomo and Entergy announced the closing
of the Indian Point nuclear power plant by 2020 and 2021. The Indian
Point nuclear power plant in Westchester County has been a significant
contributor to the local economy for decades. Payments In Lieu of
Taxes (PILOT) to the Hendrick Hudson School District comprise a
significant amount of the school district's budget. The most recent
PILOT agreement for Entergy, the company that owns the Indian Point
facility, provides 30.6% of the revenue for the Hendrick Hudson school
budget. This PILOT agreement extends to 2024-25 and it is set to
provide increased PILOT payments to the school district until the
2020-2021 school year when they are set to rapidly decline.

This legislation will enable the Hendrick Hudson School District to
use the tax stabilization reserve fund to set aside revenue from the
Entergy PILOT agreements while remaining in compliance with state law
regarding reserve fund balances. Funds held in the tax stabilization
reserve fund will offset future revenue losses due to the impending
closure of Indian Point nuclear power plant.

There is legal precedent in the state for the use of tax stabilization
reserve funds to assist school districts manage increased PILOT
revenue and use it in future school budgets. Similar legislation was
enacted in 2001 (Ch. 202 L 2001) to create a temporary nuclear
facility tax stabilization fund for the Hendrick Hudson School
district that assisted with the management of increased PILOT
payments, and enable those funds to be used to stabilize future school
budgets.

 LEGISLATIVE HISTORY :

New Bill

 FISCAL IMPLICATIONS :

None
 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S5476 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5476
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              March 30, 2017
                                ___________
 
 Introduced  by  Sen.  MURPHY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Education
 
 AN ACT to authorize the  Hendrick  Hudson  central  school  district  to
   establish  an  energy  system  tax  stabilization  reserve fund as the
   result of the closure of the Indian Point nuclear power plant

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings. The legislature hereby finds that the
 closure  of  the  Indian  Point  nuclear  power plant located within the
 Hendrick Hudson central school district may result in instability in the
 real property tax base and the budgets of the district due to the uncer-
 tainty of future payments and  impact  the  closure  will  have  on  the
 taxpayers.
   § 2. Definitions. As used in this act:
   (a)  "Board  of  education" or "board" means the board of education of
 the Hendrick Hudson central school district.
   (b) "Energy system tax stabilization reserve fund"  means  the  energy
 system tax stabilization fund established pursuant to this act.
   (c)  "School district" or "district" means the Hendrick Hudson central
 school district.
   § 3. The board of education is hereby authorized to establish an ener-
 gy system tax stabilization reserve fund to lessen or prevent  increases
 in the school district's real property tax levy resulting from decreases
 in  revenue  due  to the closure of the Indian Point nuclear power plant
 provided, however,  that  no  such  fund  shall  be  established  unless
 approved  by a majority vote of the voters present and voting on a sepa-
 rate ballot proposition therefor at either a  special  district  meeting
 which  the board of education may call for such purpose or at the annual
 district meeting and election, to be noticed  and  conducted  in  either
 case  in  accordance with article 41 of the education law. Such separate
 proposition shall set forth the maximum allowable balance to be deposit-

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

                                                            LBD10820-01-7

 S. 5476                             2
 
 ed and held in the energy system stabilization  reserve  fund.    Moneys
 shall  be  paid  into  and withdrawn from the fund and the fund shall be
 administered as follows:
   (a)  The board of education is hereby authorized to make payments into
 the energy system tax stabilization reserve fund in  an  amount  not  to
 exceed the balance over any maximum allowable balance in such unassigned
 fund balance and from any reserve funds authorized or required by law in
 amounts  which the board of education shall determine are not reasonably
 necessary for the purpose of such fund or funds and which accrued  prior
 to the establishment of the energy system tax stabilization reserve fund
 provided  that  no  such payment from any unassigned fund balance or any
 reserve fund shall cause the balance of the fund to  exceed  the  amount
 approved in the ballot proposal pursuant to this section.
   (b)  Moneys  may be withdrawn from the energy system tax stabilization
 reserve fund for any fiscal year to be expended for any lawful  purpose.
 Withdrawals from the fund shall be disclosed in a manner consistent with
 the  required disclosures of similar reserve funds held by the district,
 including disclosures required by the property tax report card  prepared
 by  the  district pursuant to the provisions of subdivision 7 of section
 1716 of the education law; and deposits and  withdrawals  made  in  each
 fiscal  year  shall  be subject to the district's annual budget approval
 process.
   (c) The moneys in the energy system  tax  stabilization  reserve  fund
 shall  be  deposited,  invested and accounted for in the manner provided
 for in subdivisions 2 and 6 of section 3651  and  section  3652  of  the
 education law.
   § 4. This act shall take effect immediately.

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Senate Bill S5476

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Archive: Last Bill Status - Stricken

Actions

2017-S5476 (ACTIVE) - Details

2017-S5476 (ACTIVE) - Summary

2017-S5476 (ACTIVE) - Sponsor Memo

2017-S5476 (ACTIVE) - Bill Text download pdf

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Sponsored By

Terrence Murphy

Archive: Last Bill Status - Stricken

Actions

2017-S5476 (ACTIVE) - Details

2017-S5476 (ACTIVE) - Summary

2017-S5476 (ACTIVE) - Sponsor Memo

2017-S5476 (ACTIVE) - Bill Text download pdf

Comments