S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8412
 
                             I N  S E N A T E
 
                                May 4, 2018
                                ___________
 
 Introduced  by  Sens.  YOUNG,  AKSHAR,  FELDER,  GOLDEN,  HANNON, LANZA,
   MURPHY, PHILLIPS -- read twice and ordered printed, and  when  printed
   to be committed to the Committee on Local Government
 
 AN  ACT  to  amend chapter 58 of the laws of 2005 authorizing reimburse-
   ments for expenditures  made  by  or  on  behalf  of  social  services
   districts  for  medical  assistance for needy persons and the adminis-
   tration  thereof,  in  relation  to  medical  assistance   expenditure
   amounts;  to  amend  the  general municipal law, in relation to county
   property tax levy reductions resulting from medical assistance program
   expenditure reductions; and to amend the general municipal law and the
   municipal home rule law, in relation to establishing limitations  upon
   real property tax levies in cities with a population of one million or
   more
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 1 of part C of chapter 58  of  the  laws  of  2005,
 authorizing  reimbursements  for  expenditures  made  by or on behalf of
 social services districts for medical assistance for needy  persons  and
 the  administration thereof is amended by adding a new subdivision (c-2)
 to read as follows:
   (C-2) NOTWITHSTANDING ANY PROVISIONS OF SUBDIVISION (C)  OR  (C-1)  OF
 THIS  SECTION  TO  THE CONTRARY, EFFECTIVE APRIL 1, 2019, FOR THE PERIOD
 JANUARY 1, 2019 THROUGH DECEMBER 31, 2019, AND FOR  EACH  CALENDAR  YEAR
 THEREAFTER,  THE  MEDICAL  ASSISTANCE  EXPENDITURE AMOUNT FOR THE SOCIAL
 SERVICES DISTRICT FOR SUCH PERIOD SHALL BE THE GREATER OF (1)  ZERO;  OR
 (2)  THE  PREVIOUS CALENDAR YEAR'S MEDICAL ASSISTANCE EXPENDITURE AMOUNT
 MINUS TEN PERCENT OF THE MEDICAL ASSISTANCE EXPENDITURE AMOUNT  FOR  THE
 PERIOD  JANUARY  1,  2018 THROUGH DECEMBER 31, 2018.  PROVIDED, HOWEVER,
 THE LOCAL CONTRIBUTION FOR A CITY WITH A POPULATION OF  ONE  MILLION  OR
 MORE SHALL NOT BE REDUCED BY MORE THAN TWO BILLION THREE HUNDRED MILLION
 DOLLARS.
   §  2. The general municipal law is amended by adding a new section 3-e
 to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15743-04-8

 S. 8412                             2
 
   § 3-E. COUNTY PROPERTY  TAX  LEVY  REDUCTION  RESULTING  FROM  MEDICAL
 ASSISTANCE  PROGRAM  EXPENDITURE  REDUCTIONS.  NOTWITHSTANDING ANY OTHER
 PROVISION OF LAW TO THE CONTRARY, IN THE EVENT A COUNTY'S LOCAL CONTRIB-
 UTION TO NEW YORK STATE'S SHARE OF PAYMENTS UNDER THE MEDICAL ASSISTANCE
 PROGRAM  ARE  REDUCED OR ELIMINATED AS A RESULT OF CHANGES IN FEDERAL OR
 STATE STATUTE, THE AMOUNT OF SUCH  REDUCTION  OR  ELIMINATION  SHALL  BE
 APPLIED  AS AN EQUAL DOLLAR AMOUNT REDUCTION IN THE PROPERTY TAX LEVY OF
 SUCH COUNTY.
   § 3. Notwithstanding any other provision of law to the contrary, for a
 city with a population of one million or more, in the  event  the  local
 contribution  to  New  York  state's share of payments under the medical
 assistance program are reduced or eliminated as a result of  changes  in
 federal  or  state  statute, the amount of such reduction or elimination
 shall reduce city personal income  taxes  in  an  amount  equal  to  the
 reduction  in  such city's share of payments. Such reduction shall be an
 equal rate reduction applied to all tax brackets.
   § 4. The general municipal law is amended by adding a new section  3-f
 to read as follows:
   §  3-F.  LIMITATION  UPON  REAL PROPERTY TAX LEVIES BY CITIES HAVING A
 POPULATION OF ONE MILLION OR MORE.  1. UNLESS OTHERWISE PROVIDED BY LAW,
 THE AMOUNT OF REAL PROPERTY TAXES THAT MAY BE LEVIED BY OR ON BEHALF  OF
 ANY CITY HAVING A POPULATION OF ONE MILLION OR MORE SHALL NOT EXCEED THE
 TAX LEVY LIMITATION ESTABLISHED PURSUANT TO THIS SECTION.
   2. WHEN USED IN THIS SECTION:
   (A) "ALLOWABLE LEVY GROWTH FACTOR" SHALL BE THE LESSER OF: (I) ONE AND
 TWO  ONE-HUNDREDTHS;  OR  (II) THE SUM OF ONE PLUS THE INFLATION FACTOR;
 PROVIDED, HOWEVER, THAT IN NO CASE SHALL THE LEVY GROWTH FACTOR BE  LESS
 THAN ONE.
   (B)  "APPROVED CAPITAL EXPENDITURES" MEANS THE EXPENDITURES ASSOCIATED
 WITH CAPITAL PROJECTS THAT HAVE BEEN APPROVED BY THE QUALIFIED VOTERS OF
 THE LOCAL GOVERNMENT.
   (C) "AVAILABLE CARRYOVER" MEANS THE SUM OF THE AMOUNT BY WHICH THE TAX
 LEVY FOR THE PRIOR FISCAL YEAR WAS BELOW THE TAX  LEVY  LIMIT  FOR  SUCH
 FISCAL  YEAR,  IF  ANY, BUT NO MORE THAN ONE AND ONE-HALF PERCENT OF THE
 TAX LEVY LIMIT FOR SUCH FISCAL YEAR.
   (D) "CAPITAL TAX LEVY" MEANS THE TAX LEVY NECESSARY TO SUPPORT CAPITAL
 EXPENDITURES, IF ANY.
   (E) "COMING FISCAL YEAR" MEANS THE FISCAL YEAR OF THE LOCAL GOVERNMENT
 FOR WHICH A TAX LEVY LIMITATION SHALL BE  DETERMINED  PURSUANT  TO  THIS
 SECTION.
   (F)  "INFLATION  FACTOR" MEANS THE QUOTIENT OF: (I) THE AVERAGE OF THE
 NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES  DEPART-
 MENT OF LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE
 START  OF  THE  COMING  FISCAL  YEAR  MINUS  THE AVERAGE OF THE NATIONAL
 CONSUMER PRICE INDEXES DETERMINED BY THE  UNITED  STATES  DEPARTMENT  OF
 LABOR  FOR  THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE START
 OF THE PRIOR FISCAL YEAR, DIVIDED BY: (II) THE AVERAGE OF  THE  NATIONAL
 CONSUMER  PRICE  INDEXES  DETERMINED  BY THE UNITED STATES DEPARTMENT OF
 LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO  THE  START
 OF THE PRIOR FISCAL YEAR, WITH THE RESULT EXPRESSED AS A DECIMAL TO FOUR
 PLACES.
   (G) "LOCAL GOVERNMENT" MEANS A CITY HAVING A POPULATION OF ONE MILLION
 OR MORE.
   (H)  "PRIOR FISCAL YEAR" MEANS THE FISCAL YEAR OF THE LOCAL GOVERNMENT
 IMMEDIATELY PRECEDING THE COMING FISCAL YEAR.

 S. 8412                             3
 
   (I) "TAX LEVY LIMITATION" MEANS THE AMOUNT OF TAXES A LOCAL GOVERNMENT
 IS AUTHORIZED TO LEVY PURSUANT TO THIS SECTION, PROVIDED, HOWEVER,  THAT
 THE  TAX  LEVY  LIMIT  SHALL NOT INCLUDE THE LOCAL GOVERNMENT'S APPROVED
 CAPITAL TAX LEVY, IF ANY.
   3.  (A)  BEGINNING  WITH  THE  FISCAL YEAR THAT BEGINS IN TWO THOUSAND
 NINETEEN, NO LOCAL GOVERNMENT SHALL ADOPT A BUDGET THAT REQUIRES  A  TAX
 LEVY  THAT IS GREATER THAN THE TAX LEVY LIMITATION FOR THE COMING FISCAL
 YEAR.
   (B) THE STATE COMPTROLLER SHALL CALCULATE THE TAX LEVY LIMITATION  FOR
 EACH  LOCAL  GOVERNMENT  BY  THE ONE HUNDRED TWENTIETH DAY PRECEDING THE
 COMMENCEMENT OF EACH LOCAL GOVERNMENT'S FISCAL YEAR,  AND  SHALL  NOTIFY
 EACH LOCAL GOVERNMENT OF THE TAX LEVY LIMITATION SO DETERMINED.
   (C) THE TAX LEVY LIMITATION APPLICABLE TO THE COMING FISCAL YEAR SHALL
 BE DETERMINED AS FOLLOWS:
   (I)  ASCERTAIN  THE  TOTAL AMOUNT OF TAXES LEVIED FOR THE PRIOR FISCAL
 YEAR.
   (II) ADD ANY PAYMENTS IN LIEU OF TAXES THAT  WERE  RECEIVABLE  IN  THE
 PRIOR FISCAL YEAR.
   (III)  SUBTRACT  THE  APPROVED  CAPITAL  TAX LEVY FOR THE PRIOR FISCAL
 YEAR, IF ANY.
   (IV) SUBTRACT THE LEVY ATTRIBUTABLE TO A LARGE LEGAL SETTLEMENT  OF  A
 TORT  ACTION EXCLUDED FROM THE LEVY LIMITATION IN THE PRIOR FISCAL YEAR,
 IF ANY.
   (V) MULTIPLY THE RESULT BY THE ALLOWABLE LEVY GROWTH FACTOR.
   (VI) SUBTRACT ANY PAYMENTS IN LIEU OF TAXES RECEIVABLE IN  THE  COMING
 FISCAL YEAR.
   (VII) ADD THE AVAILABLE CARRYOVER, IF ANY.
   (D) IN THE EVENT THE CITY COUNCIL OF A LOCAL GOVERNMENT HAS APPROVED A
 LEGAL  SETTLEMENT  OF  A  TORT ACTION AGAINST THE GOVERNMENT, THE ANNUAL
 COSTS OF WHICH EXCEED TEN PERCENT OF THE PROPERTY TAXES  LEVIED  BY  THE
 LOCAL  GOVERNMENT  IN THE PRIOR FISCAL YEAR, THE STATE COMPTROLLER, UPON
 APPLICATION BY THE LOCAL GOVERNMENT, MAY ADJUST THE TAX LEVY  LIMITATION
 FOR  THE  COMING  FISCAL  YEAR  APPLICABLE  TO SUCH LOCAL GOVERNMENT, BY
 ADDING THE ANNUAL COSTS OF SUCH SETTLEMENT TO THE TAX LEVY LIMITATION.
   (E) THE STATE COMPTROLLER SHALL DETERMINE THE PORTION OF THE TAX  LEVY
 OF  EACH  LOCAL  GOVERNMENT  THAT  IS  ATTRIBUTABLE  TO  ANY INCREASE OR
 DECREASE OVER THE PRIOR YEAR IN THE COST OF THE LOCAL  GOVERNMENT  SHARE
 OF  DIRECT CASH ASSISTANCE TO PERSONS ELIGIBLE FOR THE FEDERAL-STATE-LO-
 CAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES PROGRAM  OR  THE  STATE-LOCAL
 SAFETY  NET  ASSISTANCE PROGRAM AND SHALL ADJUST THE TAX LEVY LIMITATION
 FOR SUCH LOCAL GOVERNMENT TO REFLECT SUCH CHANGE.
   4. A LOCAL GOVERNMENT MAY ADOPT A BUDGET THAT REQUIRES A TAX LEVY THAT
 IS GREATER THAN THE TAX LEVY LIMITATION FOR THE COMING FISCAL YEAR  ONLY
 IF  THE  CITY  COUNCIL  OF SUCH LOCAL GOVERNMENT FIRST ENACTS, BY A TWO-
 THIRDS VOTE OF THE TOTAL VOTING POWER OF SUCH CITY COUNCIL, A LOCAL  LAW
 TO OVERRIDE SUCH LIMITATION FOR SUCH COMING FISCAL YEAR ONLY.
   5.  IN  THE  EVENT  A  LOCAL  GOVERNMENT'S ACTUAL TAX LEVY FOR A GIVEN
 FISCAL YEAR EXCEEDS THE MAXIMUM ALLOWABLE LEVY AS  ESTABLISHED  PURSUANT
 TO  THIS  SECTION DUE TO CLERICAL OR TECHNICAL ERRORS, THE LOCAL GOVERN-
 MENT SHALL PLACE THE EXCESS AMOUNT OF THE LEVY IN RESERVE IN  ACCORDANCE
 WITH SUCH REQUIREMENTS AS THE STATE COMPTROLLER MAY PRESCRIBE, AND SHALL
 USE  SUCH  FUNDS  AND ANY INTEREST EARNED THEREON TO OFFSET THE TAX LEVY
 FOR THE ENSUING FISCAL YEAR.
   § 5. Paragraphs j and k of subdivision 2 of section 23 of the  munici-
 pal home rule law are relettered paragraphs k and l, and a new paragraph
 j is added to read as follows:

 S. 8412                             4
 
   J.  OVERRIDES THE TAX LEVY LIMITATION APPLICABLE FOR THE COMING FISCAL
 YEAR IN ACCORDANCE WITH SECTION THREE-F OF THE GENERAL MUNICIPAL LAW.
   § 6. This act shall take effect immediately and sections four and five
 of  this act shall first apply to the levy of taxes by local governments
 for the fiscal year that begins in 2019.