NY State Senate Bill S5122A

Archive: Last Bill Status - Passed Senate

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed/Vetoed by Governor

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Actions

view actions (18)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 11, 2020	referred to corporations, authorities and commissions delivered to assembly passed senate
Feb 05, 2020	advanced to third reading
Feb 04, 2020	2nd report cal.
Feb 03, 2020	1st report cal.332
Jan 08, 2020	referred to energy and telecommunications returned to senate died in assembly
May 21, 2019	referred to corporations, authorities and commissions delivered to assembly passed senate
May 06, 2019	advanced to third reading
May 01, 2019	2nd report cal.
Apr 30, 2019	1st report cal.530
Apr 24, 2019	print number 5122a
Apr 24, 2019	amend and recommit to energy and telecommunications
Apr 10, 2019	referred to energy and telecommunications

Votes

view votes

Feb 11, 2020 - floor Vote

S5122A

floor

Aye

Nay

Absent

Excused

Abstained

Feb 3, 2020 - Energy and Telecommunications committee Vote

S5122A

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

show Energy and Telecommunications committee vote details

Energy and Telecommunications Committee Vote: Feb 3, 2020

aye (6)

aye wr (3)

May 21, 2019 - floor Vote

S5122A

floor

Aye

Nay

Absent

Excused

Abstained

Apr 30, 2019 - Energy and Telecommunications committee Vote

S5122A

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

show Energy and Telecommunications committee vote details

Energy and Telecommunications Committee Vote: Apr 30, 2019

aye (8)

aye wr (1)

Funke

Bill Amendments

Original

A (Active)

Original

A (Active)

Co-Sponsors

S5122 - Details

See Assembly Version of this Bill:: A7786
Current Committee:: Assembly Corporations, Authorities And Commissions
Law Section:: Public Authorities Law
Laws Affected:: Amd §1020-q, Pub Auth L
Versions Introduced in 2021-2022 Legislative Session:: S1313

S5122 - Summary

Relates to the liability of a municipality or governmental subdivision for the refund of property taxes to the Long Island power authority.

S5122 - Sponsor Memo

 
BILL NUMBER: S5122

SPONSOR: GAUGHRAN
 
TITLE OF BILL:  An act to amend the public authorities law, in
relation to the liability of a municipality or governmental subdivision
for the refund of property taxes to the Long Island power authority

 
PURPOSE:

The purpose of this bill is to limit the financial impact of adverse tax
certiorari challenges by LIPA on affected local governmental entities.

 
SUMMARY OF PROVISIONS:

Section one adds a new subdivision four to section 1020-q of the public
authorities law. Parallel to the preceding subdivision, this provision
would limit the remedies available to LIPA when bringing tax certiorari
challenges by prohibiting relief in the form of repayment of all or part
of the taxes assessed against any power plant, transmission line or
substation from a prior year.

Section two provides that this act shall take effect thirty days after
becoming law.

 
JUSTIFICATION:

In 1998, LIPA acquired all the capital stock and associated assets of
Long Island Lighting Company (LILCO), which operated the electrical
system on Long Island. In connection with that acquisition, the authori-
ty took over ultimate responsibility for providing electric utility
service to residential, commercial, industrial, nonprofit and govern-
mental customers in the counties of Suffolk, Nassau and a portion of
Queens.

At the time of acquisition, then-Chariman Richard Kessel memorialized an
agreement that LIPA would never challenge the assessed values of their
properties, provided the municipalities never raised them. The devastat-
ing impact that tax-certiorari challenges would have on local govern-
mental entities was recognized from LIPA's inception.

In fact, at the time of acquisition the Shoreham Power Plant (through
LILCO), was challenging its tax assessment. To remedy this, a provision
was added to the enabling law governing LIPA providing that no refund of
taxes resulting from any judicial determination would be collected from
the impacted municipality (see Public Authorities Law 1020-q(3)).

Today, LIPA has initiated tax certiorari lawsuits across Long Island in
relation to various properties owned by the Authority. They are chal-
lenging their assessments for the current year, and seeking relief in
the form of a refund for taxes paid in prior years. This relief, if
granted, would be detrimental to the vitality of the communities in
which these properties are located and would have a direct impact on
their ability to provide indispensable programs and services. These
actions are in direct conflict with LIPA's enabling statute which
explicitly provides that the establishment of the authority will, among
other priorities, realize savings for the . . .  taxpayers in the
service area (see Public Authorities Law 1020-a).


This legislation would prevent LIPA for seeking relief in the form of a
return of past year tax payments, thereby limiting the financial hard-
ship that local governments would endure in the event of an adverse
judgment.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect immediately.

S5122 - Bill Text download pdf


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

                                  5122

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                             April 10, 2019
                               ___________

Introduced  by Sen. GAUGHRAN -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations

AN ACT to amend the public authorities law, in relation to the liability
  of  a municipality or governmental subdivision for the refund of prop-
  erty taxes to the Long Island power authority

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

  Section 1. Section 1020-q of the public authorities law, as amended by
section  8  of  part A of chapter 173 of the laws of 2013, is amended by
adding a new subdivision 4 to read as follows:
  4. ON AND AFTER THE EFFECTIVE DATE OF  THIS  SUBDIVISION,  NO  MUNICI-
PALITY  OR  GOVERNMENTAL    SUBDIVISION,  INCLUDING A SCHOOL DISTRICT OR
SPECIAL DISTRICT, SHALL BE LIABLE TO THE AUTHORITY, FOR  A    REFUND  OF
PROPERTY TAXES ORIGINALLY ASSESSED AGAINST ANY POWER PLANT, TRANSMISSION
LINE  OR  ANY SUBSTATION ASSESSMENT OWNED BY THE AUTHORITY. ANY JUDICIAL
DETERMINATION THAT ANY  SUCH  POWER  PLANT,  TRANSMISSION  LINE  OR  ANY
SUBSTATION ASSESSMENT WAS EXCESSIVE, UNEQUAL OR UNLAWFUL ON OR AFTER THE
EFFECTIVE  DATE  OF  THIS ACT SHALL NOT RESULT IN A REFUND BY ANY TAXING
JURISDICTION OF TAXES  PREVIOUSLY PAID BY LILCO OR THE AUTHORITY, PURSU-
ANT TO SUCH POWER PLANT, TRANSMISSION LINE OR ANY SUBSTATION ASSESSMENT.
THE AUTHORITY SHALL DISCONTINUE OR ABANDON ALL PROCEEDINGS,  BROUGHT  BY
ITS  PREDECESSOR  IN INTEREST OR THE AUTHORITY, WHICH SEEK THE REPAYMENT
OF ALL OR PART OF THE TAXES ASSESSED AGAINST ANY SUCH POWER PLANT, TRAN-
SMISSION LINE OR ANY SUBSTATION FORMALLY OWNED  BY  LILCO  OR  CURRENTLY
OWNED BY THE AUTHORITY.
  §  2.  This  act shall take effect on the thirtieth day after it shall
have become a law.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11144-01-9

Co-Sponsors

S5122A (ACTIVE) - Details

See Assembly Version of this Bill:: A7786
Current Committee:: Assembly Corporations, Authorities And Commissions
Law Section:: Public Authorities Law
Laws Affected:: Amd §1020-q, Pub Auth L
Versions Introduced in 2021-2022 Legislative Session:: S1313

S5122A (ACTIVE) - Summary

Relates to the liability of a municipality or governmental subdivision for the refund of property taxes to the Long Island power authority.

S5122A (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S5122A

SPONSOR: GAUGHRAN
 
TITLE OF BILL:  An act to amend the public authorities law, in
relation to the liability of a municipality or governmental subdivision
for the refund of property taxes to the Long Island power authority

 
PURPOSE:

The purpose of this bill is to limit the financial impact of adverse tax
certiorari challenges by LIPA on affected local governmental entities.

 
SUMMARY OF PROVISIONS:

Section one adds a new subdivision four to section 1020-q of the public
authorities law. Parallel to the preceding subdivision, this provision
would limit the remedies available to LIPA when bringing tax certiorari
challenges by prohibiting relief in the form of repayment of all or part
of the taxes assessed against any power plant, transmission line or
substation from a prior year. This limitation would be extended to third
party power producers receiving reimbursement for property taxes by the

Authority.

Section two contains a severability clause.

Section three provides that this act shall take effect thirty days after
becoming law.

 
JUSTIFICATION:

In 1998, LIPA acquired all the capital stock and associated assets of
Long Island Lighting Company (LILCO), which operated the electrical
system on Long Island. In connection with that acquisition, the authori-
ty took over ultimate responsibility for providing electric utility
service to residential, commercial, industrial, nonprofit and govern-
mental customers in the counties of Suffolk, Nassau and a portion of
Queens.

At the time of acquisition, then-Chairman Richard Kessel memorialized an
agreement that LIPA would never challenge the assessed values of their
properties, provided the municipalities never raised them. The devastat-
ing impact that tax-certiorari challenges would have on local govern-
mental entities was recognized from LIPA's inception.

In fact, at the time of acquisition the Shoreham Power Plant (through
LILCO), was challenging its tax assessment. To remedy this, a provision
was added to the enabling law governing LIPA providing that no refund of
taxes resulting from any judicial determination would be collected from
the impacted municipality (see Public Authorities Law 1020-q(3)).

Today, LIPA has initiated tax certiorari lawsuits across Long Island in
relation to various properties owned by the Authority. They are chal-
lenging their assessments for the current year, and seeking relief in
the form of a refund for taxes paid in prior years. This relief, if
granted, would be detrimental to the vitality of the communities in
which these properties are located and would have a direct impact on
their ability to provide indispensable programs and services. These
actions are in direct conflict with LIPA's enabling statute which
explicitly provides that the establishment of the authority will, among
other priorities, realize savings for the . . . taxpayers in the service
area (see Public Authorities Law 1020-a).

This legislation would prevent LIPA for seeking relief in the form of a
return of past year tax payments, thereby limiting the financial hard-
ship that local governments would endure in the event of an adverse
judgment. This limitation would also be extended to third party power
producers that are reimbursed by LIPA for property taxes.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect immediately.

S5122A (ACTIVE) - Bill Text download pdf


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

                                 5122--A

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                             April 10, 2019
                               ___________

Introduced  by Sens. GAUGHRAN, FLANAGAN -- read twice and ordered print-
  ed, and when printed to be committed to the Committee  on  Energy  and
  Telecommunications  --  committee  discharged,  bill  amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the public authorities law, in relation to the liability
  of a municipality or governmental subdivision for the refund of  prop-
  erty taxes to the Long Island power authority

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

  Section 1. Section 1020-q of the public authorities law, as amended by
section 8 of part A of chapter 173 of the laws of 2013,  is  amended  by
adding a new subdivision 4 to read as follows:
  4.  ON  AND  AFTER  THE EFFECTIVE DATE OF THIS SUBDIVISION, NO MUNICI-
PALITY OR GOVERNMENTAL   SUBDIVISION, INCLUDING  A  SCHOOL  DISTRICT  OR
SPECIAL  DISTRICT,  SHALL  BE  OR BECOME LIABLE TO THE AUTHORITY, OR ANY
REIMBURSED THIRD PARTY POWER PRODUCER, FOR A  REFUND OF  PROPERTY  TAXES
ORIGINALLY  ASSESSED  AGAINST  ANY  POWER  PLANT,  TRANSMISSION  LINE OR
SUBSTATION OWNED BY THE AUTHORITY, ITS  PREDECESSOR  IN  INTEREST  OR  A
THIRD  PARTY POWER PRODUCER WHEN THE THIRD PARTY POWER PRODUCER IS REIM-
BURSED BY THE AUTHORITY FOR ANY PORTION OF THE PROPERTY  TAXES  ASSESSED
AGAINST  A  POWER  PLANT,  TRANSMISSION  LINE OR SUBSTATION OWNED BY THE
THIRD PARTY POWER PRODUCER, HEREINAFTER REFERRED  TO  AS  A  "REIMBURSED
THIRD  PARTY  POWER  PRODUCER". ANY JUDICIAL DETERMINATION THAT ANY SUCH
POWER PLANT, TRANSMISSION LINE OR SUBSTATION ASSESSMENT  WAS  EXCESSIVE,
UNEQUAL  OR  UNLAWFUL ON OR AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION
SHALL NOT RESULT IN A REFUND BY ANY TAXING JURISDICTION FOR ANY  PORTION
OF  TAXES PREVIOUSLY PAID BY THE AUTHORITY, ITS PREDECESSOR IN INTEREST,
OR ANY REIMBURSED THIRD PARTY POWER PRODUCER AS DEFINED IN THIS SUBDIVI-
SION, PURSUANT TO SUCH POWER  PLANT,  TRANSMISSION  LINE  OR  SUBSTATION
ASSESSMENT. THE AUTHORITY, AND ANY REIMBURSED THIRD PARTY POWER PRODUCER
SHALL DISCONTINUE OR ABANDON ALL PROCEEDINGS, BROUGHT BY ITS PREDECESSOR

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

                                                           LBD11144-04-9

S. 5122--A                          2

IN INTEREST OR ANY REIMBURSED THIRD PARTY POWER PRODUCER, WHICH SEEK THE
REPAYMENT  OF  ALL  OR PART OF THE TAXES ASSESSED AGAINST ANY SUCH POWER
PLANT, TRANSMISSION LINE  OR  SUBSTATION  FORMERLY  OWNED  BY  LILCO  OR
CURRENTLY  OWNED  BY  THE  AUTHORITY OR ANY REIMBURSED THIRD PARTY POWER
PRODUCER.
  § 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 on the thirtieth day after it shall
have become a law.

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The New York State Senate

senate Bill S5122A

Sponsored By

Archive: Last Bill Status - Passed Senate

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Votes

Feb 11, 2020 - floor Vote

Floor Vote: Feb 11, 2020

Feb 3, 2020 - Energy and Telecommunications committee Vote

Energy and Telecommunications Committee Vote: Feb 3, 2020

May 21, 2019 - floor Vote

Floor Vote: May 21, 2019

Apr 30, 2019 - Energy and Telecommunications committee Vote

Energy and Telecommunications Committee Vote: Apr 30, 2019

Bill Amendments

Co-Sponsors

S5122 - Details

S5122 - Summary

S5122 - Sponsor Memo

S5122 - Bill Text download pdf

Co-Sponsors

S5122A (ACTIVE) - Details

S5122A (ACTIVE) - Summary

S5122A (ACTIVE) - Sponsor Memo

S5122A (ACTIVE) - Bill Text download pdf

Comments

senate Bill S5122A

Share this bill

Sponsored By

James Gaughran

Archive: Last Bill Status - Passed Senate

Your Voice

Actions

Votes

Feb 11, 2020 - floor Vote

Floor Vote: Feb 11, 2020

Feb 3, 2020 - Energy and Telecommunications committee Vote

Energy and Telecommunications Committee Vote: Feb 3, 2020

May 21, 2019 - floor Vote

Floor Vote: May 21, 2019

Apr 30, 2019 - Energy and Telecommunications committee Vote

Energy and Telecommunications Committee Vote: Apr 30, 2019

Bill Amendments

Co-Sponsors

John J. Flanagan

S5122 - Details

S5122 - Summary

S5122 - Sponsor Memo

S5122 - Bill Text download pdf

Co-Sponsors

John J. Flanagan

Todd Kaminsky

S5122A (ACTIVE) - Details

S5122A (ACTIVE) - Summary

S5122A (ACTIVE) - Sponsor Memo

S5122A (ACTIVE) - Bill Text download pdf

Comments