The New York State Senate

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

                                 8235--A

                            I N  S E N A T E

                             April 20, 2018
                               ___________

Introduced  by  Sens.  FLANAGAN,  LAVALLE,  KAMINSKY  --  read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Finance  --  committee  discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

AN ACT to amend subpart H of part C of chapter 20 of the laws  of  2015,
  relating to appropriating money for certain municipal corporations and
  school  districts,  in  relation  to  authorizing funds in the case of
  certain tax certiorari challenges or agreed upon settlements;  and  to
  permit  certain  boards  of  education  to  establish a tax certiorari
  stabilization reserve fund

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

  Section  1. Section 1 of subpart H of part C of chapter 20 of the laws
of 2015, relating to appropriating money for  certain  municipal  corpo-
rations  and  school  districts,  as amended by section 1 of part AAA of
chapter 59 of the laws of 2018, is amended to read as follows:
  Section 1. Contingent  upon  available  funding,  and  not  to  exceed
$69,000,000  moneys  from  the  urban  development  corporation shall be
available for a local government entity, which for the purposes of  this
section  shall  mean  a  county, city, town, village, school district or
special district, where (i) on or  after  June  25,  2015,  an  electric
generating  facility  located  within  such  local government entity has
ceased operations, and (ii) the closing of such facility  has  caused  a
reduction  in  the  real property tax collections or payments in lieu of
taxes of at least twenty percent owed by such electric generating facil-
ity; OR WHERE, ON OR AFTER APRIL 1, 2018, A  SUCCESSFUL  TAX  CERTIORARI
CHALLENGE  OR AN AGREED UPON SETTLEMENT TO THE ASSESSMENT OF AN ELECTRIC
GENERATING FACILITY BY THE LONG ISLAND POWER AUTHORITY HAS  RESULTED  IN
EITHER  A  REDUCTION IN THE REAL PROPERTY TAX COLLECTIONS OR PAYMENTS IN
LIEU OF TAXES OF AT LEAST TWENTY PERCENT, OR IN REGARDS TO A  SETTLEMENT
AGREEMENT  A  REDUCTION  IN  REAL  PROPERTY TAXES OR PAYMENTS IN LIEU OF
TAXES OF AT LEAST TWENTY PERCENT IN THE AGGREGATE OVER THE TERM  OF  THE
SETTLEMENT  AGREEMENT,  OWED BY SUCH ELECTRIC GENERATING FACILITY OR HAS
RESULTED IN A REAL PROPERTY TAX LEVY INCREASE OF OVER TWENTY PERCENT  OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD15267-12-8

S. 8235--A                          2

A  LOCAL GOVERNMENT ENTITY. Such moneys attributable to the cessation of
operations, A SUCCESSFUL TAX CERTIORARI CHALLENGE,  OR  AN  AGREED  UPON
SETTLEMENT,  shall  be paid annually on a first come, first served basis
by  the  urban  development  corporation to such local government entity
within a reasonable time upon confirmation from the state office of real
property tax services or  the  local  industrial  development  authority
established  pursuant  to  titles eleven and fifteen of article eight of
the public authorities law, or the local industrial  development  agency
established  pursuant to article eighteen-A of the general municipal law
that such cessation, TAX CERTIORARI JUDGMENT, OR AN AGREED UPON  SETTLE-
MENT has resulted in a reduction in the real property tax collections or
payments in lieu of taxes, provided, however, that the urban development
corporation shall not provide assistance to such local government entity
for  more  than  seven  years  IN THE CASE OF THE CLOSING OF AN ELECTRIC
GENERATING FACILITY OR IN THE CASE  OF  A  TAX  CERTIORARI  JUDGMENT  OR
AGREED  UPON SETTLEMENT FOR NOT MORE THAN FIFTEEN YEARS, and shall award
payments reflecting the loss of revenues due to the cessation  of  oper-
ations, TAX CERTIORARI JUDGMENT OR AN AGREED UPON SETTLEMENT as follows:

        Award [Year] YEARS        Maximum Potential Award
            1           no more than eighty percent of loss of revenues
            2           no more than seventy percent of loss of revenues
            3           no more than sixty percent of loss of revenues
            4           no more than fifty percent of loss of revenues
            5           no more than forty percent of loss of revenues
            6           no more than thirty percent of loss of revenues
            7-15        no more than twenty percent of loss of revenues

  A  local  government  entity shall be eligible for only one payment of
funds hereunder per year. A local government entity may seek  assistance
under  the  electric  generation  facility  cessation AND TAX CERTIORARI
mitigation fund (I) once a generator has submitted  its  notice  to  the
federally  designated  electric  bulk  system operator (BSO) serving the
state of New York of its intent to retire the facility or of its  intent
to  voluntarily  remove the facility from service subject to any return-
to-service provisions of any tariff, and that the facility also is inel-
igible to participate in the markets operated by the BSO; OR (II) ONCE A
FINAL JUDGMENT OR SETTLEMENT AGREEMENT IN A  TAX  CERTIORARI  PROCEEDING
HAS  BEEN  FILED OR EXECUTED.  The date of submission of a local govern-
ment entity's application for assistance shall establish  the  order  in
which  assistance is paid to program applicants, except that in no event
shall assistance be paid to a local government entity  until  such  time
that  an  electric  generating facility has EITHER (I) retired or become
ineligible to participate in the markets operated by the BSO, OR (II)  A
FINAL  JUDGMENT  OR  SETTLEMENT AGREEMENT IN A TAX CERTIORARI PROCEEDING
HAS BEEN FILED OR EXECUTED.   For purposes of this  section,  any  local
government  entity  seeking  assistance  under  the  electric generation
facility cessation AND TAX CERTIORARI mitigation  fund  must  submit  an
attestation to the department of public service that EITHER (I) a facil-
ity is no longer producing electricity and is no longer participating in
markets  operated  by  the  BSO,  OR (II) A FINAL JUDGMENT OR SETTLEMENT
AGREEMENT IN A TAX CERTIORARI PROCEEDING HAS  BEEN  FILED  OR  EXECUTED.
[After] FOR FACILITIES THAT HAVE CEASED OPERATIONS AFTER receipt of such
attestation,  the department of public service shall confirm such infor-
mation with the BSO. In the case that the BSO confirms to the department
of public service that the facility is no longer  producing  electricity

S. 8235--A                          3

and  participating  in  markets operated by such BSO, it shall be deemed
that the electric generating facility located within the  local  govern-
ment entity has ceased operation. The department of public service shall
provide  such  confirmation  to  the  urban development corporation upon
receipt. [The] FOR A FACILITY WITH A TAX CERTIORARI JUDGMENT OR  SETTLE-
MENT,  THE DEPARTMENT OF PUBLIC SERVICE SHALL SUBMIT SUCH ATTESTATION TO
THE URBAN DEVELOPMENT CORPORATION UPON RECEIPT OF THE  determination  of
the amount of such annual payment WHICH shall be determined by the pres-
ident  of  the  urban development corporation based on the amount of the
differential between the annual real property taxes and payments in lieu
of taxes imposed upon the facility, exclusive of interest and penalties,
during the last year of operations and EITHER (I) the current real prop-
erty taxes and payments in lieu of  taxes  imposed  upon  the  facility,
exclusive of interest and penalties AFTER THE CESSATION OF OPERATIONS OR
FINAL  JUDGMENT  OR SETTLEMENT AGREEMENT IN A TAX CERTIORARI PROCEEDING,
OR (II) THE ANNUAL REDUCTION ON REAL PROPERTY TAXES OR PAYMENTS IN  LIEU
OF TAXES DURING THE TERM OF A SETTLEMENT AGREEMENT FROM A TAX CERTIORARI
PROCEEDING.  The total amount awarded from this program shall not exceed
$69,000,000.
  §  2.  Tax certiorari stabilization reserve fund. (a) Definitions.  As
used in this section:
  (i) "Board of education" or "board" shall mean the board of  education
of  either:  the  Port  Jefferson union free school district, the North-
port-East Northport union free school district, the North Shore  central
school  district,  the  Island  Park  union free school district, or any
other school district that  is  impacted  by  a  tax  certiorari  action
brought by the Long Island Power Authority.
  (ii)  "Tax  certiorari  stabilization reserve fund" shall mean the tax
certiorari stabilization  reserve  fund  established  pursuant  to  this
section.
  (iii)  "School  district"  or  "district"  shall mean either: the Port
Jefferson union free school district, the Northport-East Northport union
free school district, the  North  Shore  central  school  district,  the
Island  Park  union  free  school district, or any other school district
that is impacted by a tax certiorari action brought by the  Long  Island
Power Authority.
  (b)  The  board  of  education is hereby authorized to establish a tax
certiorari stabilization reserve fund to lessen or prevent increases  in
the school district's real property tax levy resulting from decreases in
revenue  due to a tax certiorari settlement or judgment provided, howev-
er, that no such fund shall be established unless approved by a majority
vote of the voters present and voting on a separate  ballot  proposition
therefor  at either a special district meeting which the board of educa-
tion 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 deposited and held in the tax
certiorari stabilization reserve fund. Moneys shall  be  paid  into  and
withdrawn from the fund and the fund shall be administered as follows:
  (i)  The  board  of education is hereby authorized to receive payments
into its tax certiorari stabilization reserve fund from any annual funds
it is eligible to receive from the electric generating  facility  cessa-
tion fund. Such received allocations from the electric generating facil-
ity cessation fund shall not count against the district's maximum allow-
able fund balance for its tax certiorari stabilization reserve fund.

S. 8235--A                          4

  (ii)  Moneys  may  be  withdrawn from the tax certiorari stabilization
reserve fund for any fiscal year to be expended for any  lawful  purpose
to  lessen  or prevent increases in the district's tax levy. 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 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.
  §  3.  This act shall take effect immediately, provided, however, that
the amendments to section 1 of subpart H of part C of chapter 20 of  the
laws of 2015 made by section one of this act shall not affect the repeal
of such subpart and shall be deemed repealed therewith.