Senate Bill S7270

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7270
 
                             I N  S E N A T E
 
                              January 5, 2018
                                ___________
 
 Introduced  by  Sen. BONACIC -- read twice and ordered printed, and when
   printed to be committed to the Committee on Education
 
 AN ACT to amend the education law, in relation to  school  property  tax
   reduction (Part A); and to amend the education law, in relation to the
   submission  to school district voters of a proposition relating to the
   imposition of a limitation on the tax levy (Part B)

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This  act enacts into law major components of legislation
 which are necessary to enact this chapter of  the  laws  of  2018.  Each
 component is wholly contained within a Part identified as Parts A and B.
 The  effective  date for each particular provision contained within such
 Part is set forth in the last section of such Part. Any provision in any
 section contained within a Part, including the  effective  date  of  the
 Part,  which  makes a reference to a section "of this act", when used in
 connection with that particular component, shall be deemed to  mean  and
 refer  to  the  corresponding  section of the Part in which it is found.
 Section three of this act sets forth the general effective date of  this
 act.

                                  PART A
 
   Section  1.  Section  2022 of the education law is amended by adding a
 new subdivision 8 to read as follows:
   8. A. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE  OR  REGULATION
 TO  THE  CONTRARY, IN A COMMON, UNION FREE, CENTRAL, CENTRAL HIGH SCHOOL
 DISTRICT OR SCHOOL DISTRICT LOCATED IN A  CITY  WITH  GREATER  THAN  ONE
 HUNDRED  TWENTY-FIVE THOUSAND INHABITANTS, UPON THE FILING OF A PETITION
 PURSUANT TO PARAGRAPH B OF THIS  SUBDIVISION,  WITH  THE  TRUSTEES,  THE
 BOARD  OF  EDUCATION OR THE CHANCELLOR OF A CITY SCHOOL DISTRICT LOCATED
 IN A CITY WITH GREATER THAN  ONE  MILLION  INHABITANTS  SHALL  SUBMIT  A
 PROPOSITION  FOR  THE  PURPOSE  OF  VOTING  ON  THE  QUESTION "SHALL THE
 _________ SCHOOL DISTRICT ENTER INTO THE OPTIONAL SYSTEM OF STATE  FUND-
 ING  FOR  SCHOOL  DISTRICT EXPENSES" TO THE QUALIFIED VOTERS OF A SCHOOL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD14087-01-8

 S. 7270                             2
 
 DISTRICT. SUCH VOTE SHALL BE HELD ON THE THIRD TUESDAY IN MAY, PROVIDED,
 HOWEVER, THAT SUCH VOTE SHALL BE HELD ON THE SECOND TUESDAY  IN  MAY  IF
 THE  COMMISSIONER AT THE REQUEST OF A LOCAL SCHOOL BOARD OR THE CHANCEL-
 LOR  IN  THE  CITY  OF NEW YORK CERTIFIES NO LATER THAN MARCH FIRST THAT
 SUCH ELECTION WOULD CONFLICT WITH RELIGIOUS OBSERVANCES.  IF A  DISTRICT
 VOTES  TO  JOIN  THE OPTIONAL SYSTEM THAT VOTE IS BINDING AND MAY NOT BE
 ALTERED BY THE DISTRICT OR ITS RESIDENTS.
   B. SUCH PETITION RELATING TO THE OPTIONAL SYSTEM FOR STATE FUNDING  OF
 SCHOOL DISTRICT EXPENSES SHALL BE SUBMITTED NO LATER THAN APRIL FIRST OF
 THE  SCHOOL YEAR IN WHICH SUCH QUESTION DESCRIBED IN PARAGRAPH A OF THIS
 SUBDIVISION SHALL BE CONSIDERED BY THE VOTERS  AND  MUST  BE  SIGNED  BY
 TWENTY-FIVE  PERCENT  OF THE NUMBER OF QUALIFIED VOTERS WHO VOTED IN THE
 PREVIOUS ANNUAL DISTRICT MEETING OR IN A CITY SCHOOL DISTRICT LOCATED IN
 A CITY WITH GREATER THAN ONE HUNDRED TWENTY-FIVE  THOUSAND  INHABITANTS,
 TWENTY-FIVE  PERCENT  OF  THE  QUALIFIED  VOTERS  IN  THE  LAST  GENERAL
 ELECTION. SUCH NUMBER SHALL BE  DETERMINED  BY  THE  NUMBER  OF  PERSONS
 RECORDED  ON  THE  POLL LIST AS HAVING VOTED AT SUCH DISTRICT MEETING IN
 THE PRIOR YEAR OR IN A CITY WITH GREATER THAN  ONE  HUNDRED  TWENTY-FIVE
 THOUSAND  INHABITANTS  IN THE PREVIOUS GENERAL ELECTION. ANY VALID PETI-
 TION CONTAINING A SUFFICIENT NUMBER OF VALID  SIGNATURES  TO  PLACE  THE
 QUESTION  DESCRIBED  IN  PARAGRAPH  A  OF THIS SUBDIVISION ON THE BALLOT
 SUBMITTED AFTER APRIL FIRST AND BEFORE JULY FIRST SHALL BE VOTED ON  THE
 THIRD  TUESDAY  IN  MAY OF THE FOLLOWING SCHOOL YEAR, PROVIDED, HOWEVER,
 THAT SUCH VOTE SHALL BE HELD ON THE SECOND TUESDAY IN MAY OF THE FOLLOW-
 ING SCHOOL YEAR IF THE COMMISSIONER AT THE REQUEST  OF  A  LOCAL  SCHOOL
 BOARD  CERTIFIES  NO  LATER  THAN  MARCH  FIRST THAT SUCH ELECTION WOULD
 CONFLICT WITH RELIGIOUS OBSERVANCES.
   § 2. Section 3602 of the education law is  amended  by  adding  a  new
 subdivision 40 to read as follows:
   40.  OPTIONAL SYSTEM FOR STATE FUNDING OF SCHOOL DISTRICT EXPENSES. IN
 ADDITION TO OTHER APPORTIONMENTS OF AID MADE TO  DISTRICTS  PURSUANT  TO
 THIS SECTION, ADDITIONAL APPORTIONMENTS SHALL BE MADE TO DISTRICTS WHICH
 ELECT TO RECEIVE AID PURSUANT TO THIS SUBDIVISION.
   A. DEFINITIONS. AS USED IN THIS SUBDIVISION:  (1) "PRIMARY RESIDENTIAL
 REAL PROPERTY TAX LEVY" SHALL BE DEFINED AS THE AGGREGATE PROPERTY TAXES
 LEVIED BY A SCHOOL DISTRICT ON A SCHOOL DISTRICT'S STAR ELIGIBLE PROPER-
 TIES AS DEFINED BY SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY
 TAX LAW.
   (2)  "BASE  YEAR  PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY" SHALL BE
 DEFINED AS THE PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY IN THE  SCHOOL
 YEAR  IMMEDIATELY  FOLLOWING THE YEAR IN WHICH THE SCHOOL DISTRICT VOTES
 TO ENTER INTO THE OPTIONAL SYSTEM FOR STATE FUNDING OF  SCHOOL  DISTRICT
 EXPENSES  PURSUANT  TO SUBDIVISION EIGHT OF SECTION TWO THOUSAND TWENTY-
 TWO OF THIS CHAPTER.
   B. TRANSITION PERIOD. (1) A  SCHOOL  DISTRICT  SHALL  CERTIFY  TO  THE
 COMMISSIONER  WITHIN THIRTY DAYS OF THE DATE AT WHICH THE VOTE WAS TAKEN
 PURSUANT TO SUBDIVISION EIGHT OF SECTION TWO THOUSAND TWENTY-TWO OF THIS
 CHAPTER WHETHER OR NOT THE QUALIFIED VOTERS OF THE DISTRICT HAVE ELECTED
 TO ENTER INTO THE OPTIONAL SYSTEM FOR STATE FUNDING OF  SCHOOL  DISTRICT
 EXPENSES.  ONCE  THE  COMMISSIONER  DETERMINES THAT A DISTRICT HAS OPTED
 INTO THE OPTIONAL SYSTEM FOR STATE FUNDING OF SCHOOL  DISTRICT  EXPENSES
 THE  DISTRICT  SHALL BEGIN RECEIVING AID PURSUANT TO THIS SUBDIVISION IN
 THE SCHOOL YEAR WHICH BEGINS ON JULY FIRST IN  THE  SUBSEQUENT  CALENDAR
 YEAR.
   (2)  SCHOOL  DISTRICTS  WHICH RECEIVE AID PURSUANT TO THIS SUBDIVISION
 SHALL RECEIVE AID PURSUANT TO THE SCHEDULE CONTAINED IN THIS  PARAGRAPH.

 S. 7270                             3

 SCHOOL  DISTRICTS  SHALL  CONTINUE TO RECEIVE AID PURSUANT TO THIS PARA-
 GRAPH AFTER THE PHASE IN PERIOD EQUAL TO ONE HUNDRED PERCENT OF THE BASE
 YEAR PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY.
   (3)  DURING  THE FIRST YEAR OF THE TRANSITION PERIOD, SCHOOL DISTRICTS
 SHALL RECEIVE AN ADDITIONAL APPORTIONMENT EQUAL TO TWENTY PER CENTUM  OF
 THE  BASE YEAR PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY. IN ALL SUBSE-
 QUENT YEARS OF THE TRANSITION PERIOD, SCHOOL DISTRICTS SHALL RECEIVE  AN
 ADDITIONAL APPORTIONMENT EQUAL TO THE FOLLOWING SCHEDULE:
                                      PERCENT OF BASE
 YEAR                 YEAR PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY
  2                                           40%
  3                                           60%
  4                                           80%
  5                                          100%
   IN  EVERY  YEAR AFTER YEAR FIVE SUCH ADDITIONAL APPORTIONMENT SHALL BE
 INCREASED ANNUALLY BY A COST OF LIVING  INCREASE.  THE  COST  OF  LIVING
 INCREASE  SHALL BE ADDED TO THE ADDITIONAL APPORTIONMENT PROVIDED IN THE
 PRIOR YEAR. THE COST OF LIVING  INCREASE  SHALL  BE  CALCULATED  AS  THE
 PERCENTAGE  INCREASE IN THE CONSUMER PRICE INDEX FOR THE PREVIOUS TWELVE
 MONTHS AS DETERMINED BY THE COMMISSIONER. SUCH PERCENTAGE INCREASE SHALL
 BE MULTIPLIED BY THE PREVIOUS YEAR'S ADDITIONAL  APPORTIONMENT  AND  THE
 PRODUCT  SHALL  BE ADDED TO THE PREVIOUS YEAR'S ADDITIONAL APPORTIONMENT
 TO CALCULATE THE CURRENT YEAR'S ADDITIONAL APPORTIONMENT.
   (4) (I) A PARTICIPATING DISTRICT SHALL REDUCE THE PRIMARY  RESIDENTIAL
 REAL  PROPERTY TAX LEVY PURSUANT TO THE SCHEDULE CONTAINED IN THIS PARA-
 GRAPH. SCHOOL DISTRICTS OPTING INTO THE OPTIONAL SYSTEM FOR STATE  FUND-
 ING  OF  SCHOOL  DISTRICT  EXPENSES  MAY NOT LEVY TAXES IN EXCESS OF THE
 REMAINDER OF THE BASE YEAR PRIMARY RESIDENTIAL REAL  PROPERTY  TAX  LEVY
 LESS  THE  AID PROVIDED IN PARAGRAPH THREE OF THIS SUBDIVISION EXCEPT TO
 FUND THE DIFFERENCE BETWEEN A DISTRICT'S CURRENT YEAR  CAPITAL  EXPENSES
 LESS THE STATE AID APPORTIONED FOR SUCH PURPOSE.
   (II) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR REGULATION TO
 THE  CONTRARY,  A  SCHOOL  DISTRICT  WHICH RECEIVES AID PURSUANT TO THIS
 SUBDIVISION SHALL BE AUTHORIZED TO SET SEPARATE  TAX  WARRANTS  AND  TAX
 RATES FOR THE PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY AND OTHER TAXA-
 BLE PROPERTIES.
   (5)  THE  APPORTIONMENT HEREUNDER SHALL NOT BE MADE UNTIL THE ELECTING
 SCHOOL DISTRICT HAS CERTIFIED TO THE COMMISSIONER  THAT  THE  DISTRICT'S
 PRIMARY  RESIDENTIAL REAL PROPERTY TAX LEVY FOR THE SCHOOL YEAR IN WHICH
 AID HAS BEEN ACCEPTED PURSUANT TO THIS PARAGRAPH, DOES  NOT  EXCEED  THE
 BASE  YEAR PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY AS DEFINED IN THIS
 SUBDIVISION LESS THE AID APPORTIONED PURSUANT TO THIS PARAGRAPH.
   C. LOCAL FUNDING SHARE. IN  EACH  CITY  HAVING  A  POPULATION  OF  ONE
 HUNDRED  TWENTY-FIVE THOUSAND OR MORE INHABITANTS FOR PURPOSES OF CALCU-
 LATING THE LOCAL SHARE OF EXPENDITURES, THE AMOUNT OF THE  REDUCTION  IN
 THE PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY MADE PURSUANT TO SUBPARA-
 GRAPH  FOUR  OF  PARAGRAPH  B  OF THIS SUBDIVISION SHALL BE DEEMED TO BE
 INCORPORATED IN THE CITY SHARE  OF  EXPENDITURES  FOR  THE  CITY  SCHOOL
 DISTRICT.
   D.  STATE FUNDING OF PROGRAM. THE LEGISLATURE SHALL ANNUALLY APPROPRI-
 ATE AN AMOUNT SUFFICIENT TO SUPPORT ALL AID PAYMENTS  INCURRED  PURSUANT
 TO THIS SUBDIVISION.
   E.  PAYMENT SCHEDULE.  THE COMMISSIONER SHALL DEVELOP A PAYMENT SCHED-
 ULE FOR AID PAYMENTS DUE AND PAYABLE PURSUANT TO  THIS  SUBDIVISION  AND
 SUCH  SCHEDULE  SHALL  BE  APPROVED BY THE DIRECTOR OF THE BUDGET BEFORE
 SUCH PAYMENT SCHEDULE TAKES EFFECT.

 S. 7270                             4
 
   § 3. This act shall take effect immediately, provided,  however,  that
 the  amendments to section 2022 of the education law made by section one
 of this act shall survive the expiration and reversion of  such  section
 as  provided  in section 13 of part A of chapter 97 of the laws of 2011,
 as amended.
 
                                  PART B
 
   Section  1.  Section  2022 of the education law is amended by adding a
 new subdivision 9 to read as follows:
   9. A. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE  OR  REGULATION
 TO  THE  CONTRARY, IN A COMMON, UNION FREE, CENTRAL, CENTRAL HIGH SCHOOL
 DISTRICT OR CITY SCHOOL DISTRICT TO WHICH THIS ARTICLE APPLIES, UPON THE
 FILING WITH THE TRUSTEES OR BOARD OF EDUCATION OF A PETITION PURSUANT TO
 PARAGRAPH B OF THIS SUBDIVISION REQUESTING SUCH  OFFICERS  TO  SUBMIT  A
 PROPOSITION  FOR THE PURPOSE OF IMPOSING A LIMITATION ON THE TAX LEVY TO
 THE QUALIFIED VOTERS AT THE ANNUAL DISTRICT MEETING  SIGNED  BY  TWENTY-
 FIVE PERCENT OF THE NUMBER OF QUALIFIED VOTERS WHO VOTED IN THE PREVIOUS
 ANNUAL  DISTRICT  MEETING, SAID NUMBER TO BE DETERMINED BY THE NUMBER OF
 PERSONS RECORDED ON THE POLL LIST AS HAVING VOTED AT SUCH DISTRICT MEET-
 ING, THE TRUSTEES OR BOARD OF EDUCATION SHALL SUBMIT SUCH PROPOSITION TO
 THE QUALIFIED VOTERS.
   B. SUCH PETITION RELATING TO IMPOSITION OF A  LIMITATION  ON  THE  TAX
 LEVY  SHALL  BE  SUBMITTED  AT  LEAST  THIRTY  DAYS  PRIOR TO THE ANNUAL
 DISTRICT MEETING AND  SHALL  SPECIFY  THE  PROPOSED  MAXIMUM  PERCENTAGE
 CHANGE  IN  THE  ESTIMATED TAX LEVY, AS DEFINED BY THE COMMISSIONER FROM
 THE ACTUAL TAX LEVY THAT RESULTED FROM THE LEVYING OF  SCHOOL  TAXES  IN
 THE PRIOR SCHOOL YEAR THAT THE TRUSTEES OR BOARD OF EDUCATION MUST APPLY
 IN  DEVELOPING  OR ADOPTING A BUDGET FOR THE SCHOOL YEAR COMMENCING WITH
 THE BUDGET TO BE SUBMITTED AT THE NEXT ANNUAL DISTRICT MEETING FOLLOWING
 VOTER APPROVAL OF SUCH PROPOSITION.   THE PROPOSITION PRESENTED  TO  THE
 QUALIFIED  VOTERS  FOR APPROVAL MUST SPECIFY THE LIMIT ON THE PERCENTAGE
 CHANGE IN THE ESTIMATED TAX LEVY THAT THE PETITION PROPOSES TO IMPOSE.
   C. NOTWITHSTANDING THE PROVISIONS OF SECTION TWO THOUSAND TWENTY-THREE
 OF THIS PART OR ANY OTHER PROVISION OF LAW, RULE OR  REGULATION  TO  THE
 CONTRARY,  UPON APPROVAL BY THE VOTERS OF A PROPOSITION IMPOSING A LIMI-
 TATION ON TAX LEVY CHANGES PURSUANT TO THIS SUBDIVISION, FOR THE  SCHOOL
 YEARS  IN  WHICH  THE  LIMITATION  IS IN EFFECT THE TRUSTEES OR BOARD OF
 EDUCATION SHALL NOT DEVELOP AND SUBMIT A PROPOSED BUDGET TO  THE  VOTERS
 AT  THE  ANNUAL  DISTRICT MEETING OR A BUDGET REVOTE THAT IN COMBINATION
 WITH ANY  SEPARATE  PROPOSITIONS  INVOLVING  THE  EXPENDITURE  OF  MONEY
 PROPOSED  BY  THE TRUSTEES OR BOARD OF EDUCATION AT SUCH ANNUAL DISTRICT
 MEETING OR BUDGET REVOTE, WOULD RESULT IN AN ESTIMATED TAX LEVY,  DETER-
 MINED  AT  THE TIME THE PROPERTY TAX REPORT CARD IS PREPARED, THAT IS IN
 EXCESS OF THE MAXIMUM PERCENTAGE CHANGE IN SUCH ESTIMATED TAX LEVY  THAT
 HAS  BEEN APPROVED BY THE VOTERS, AND THE TRUSTEES OR BOARD OF EDUCATION
 SHALL NOT ADOPT A CONTINGENCY BUDGET FOR SUCH SCHOOL YEARS, IN  COMBINA-
 TION  WITH  ANY  SUCH  SEPARATE PROPOSITIONS PROPOSED BY THE TRUSTEES OR
 BOARD OF EDUCATION THAT HAVE BEEN APPROVED BY THE VOTERS,  WOULD  RESULT
 IN AN ESTIMATED TAX LEVY IN EXCESS OF SUCH LIMITATION.
   § 2. 1. Notwithstanding any other provision of law, rule or regulation
 to  the contrary, in a village, town, city, or county upon the filing of
 a petition  pursuant to subdivision two of this section with the  county
 board  of  elections  in  which  the  political subdivision which is the
 subject of the petition is located, a proposition  for  the  purpose  of
 imposing  a  limitation  on  the tax levy to the qualified voters at the

 S. 7270                             5
 
 next general election or village general election,  if  the  proposition
 relates  to  a  village  tax  levy, signed by twenty-five percent of the
 number of qualified voters who voted in the previous general election or
 village  general  election  if  the proposition relates to a village tax
 levy, said number to be determined by respective board of elections such
 proposition shall be submitted to the qualified voters.
   2. Such petition relating to the imposition of a limitation on the tax
 levy shall be submitted at  least  thirty  days  prior  to  the  general
 election  or  village  general  election if the proposition relates to a
 village tax levy and  shall  specify  the  proposed  maximum  percentage
 change  in the estimated tax levy from the actual tax levy that resulted
 from the levying of property taxes in  the  prior  year,  for  the  year
 commencing  with the budget in the year following voter approval of such
 proposition.   The proposition presented to  the  qualified  voters  for
 approval  must  specify  the limit on the percentage change in the esti-
 mated tax levy that the petition proposes to impose.
   § 3. This act shall take effect immediately, provided,  however,  that
 the  amendments to section 2022 of the education law made by section one
 of this act shall survive the expiration and reversion of  such  section
 as  provided  in section 13 of part A of chapter 97 of the laws of 2011,
 as amended.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be  adjudged  by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its  operation  to the clause, sentence, paragraph, subdivision, section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the legislature that this act would  have  been  enacted  even  if  such
 invalid provisions had not been included herein.
   §  3.  This  act shall take effect immediately provided, however, that
 the applicable effective date of Parts A and B of this act shall  be  as
 specifically set forth in the last section of such Parts.