NY State Senate Bill 2019-S5122A

Senate Bill S5122A

2019-2020 Legislative Session

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

download bill text pdf

Archive: Last Bill Status - In Assembly Committee

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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Actions

View Actions

	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

- Feb 11, 2020 - Floor Vote
  S5122A
  
  57
  
  Aye
  
  5
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Feb 11, 2020
      
      aye (57)
      
      Addabbo Jr.
      
      Akshar
      
      Amedore
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Borrello
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Felder
      
      Flanagan
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hoylman-Sigal
      
      Jackson
      
      Jacobs
      
      Jordan
      
      Kaminsky
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      LaValle
      
      Lanza
      
      Little
      
      Liu
      
      Martinez
      
      May
      
      Mayer
      
      Metzger
      
      Montgomery
      
      Myrie
      
      Parker
      
      Persaud
      
      Ramos
      
      Ranzenhofer
      
      Rivera
      
      Robach
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Seward
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      nay (5)
      
      Funke
      
      Kaplan
      
      O'Mara
      
      Ortt
      
      Ritchie
  Feb 3, 2020 - Energy And Telecommunications Committee Vote
  S5122A
  
  6
  
  Aye
  
  0
  
  Nay
  
  3
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Energy And Telecommunications Committee Vote: Feb 3, 2020
      
      aye (6)
      
      Carlucci
      
      Harckham
      
      Kavanagh
      
      Kennedy
      
      Metzger
      
      Parker
      
      aye wr (3)
      
      Funke
      
      Ortt
      
      Ritchie

Bill Amendments

Original

A (Active)

co-Sponsors

2019-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 2019-2020 Legislative Session:: S5122, A7786

2019-S5122 - Summary

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

2019-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.

2019-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

2019-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 2019-2020 Legislative Session:: S5122, A7786

2019-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.

2019-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.

2019-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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Senate Bill S5122A

Share this bill

Sponsored By

James Gaughran

Archive: Last Bill Status - In Assembly Committee

Bill Amendments

co-Sponsors

John J. Flanagan

2019-S5122 - Details

2019-S5122 - Summary

2019-S5122 - Sponsor Memo

2019-S5122 - Bill Text download pdf

co-Sponsors

John J. Flanagan

Todd Kaminsky

2019-S5122A (ACTIVE) - Details

2019-S5122A (ACTIVE) - Summary

2019-S5122A (ACTIVE) - Sponsor Memo

2019-S5122A (ACTIVE) - Bill Text download pdf

Comments