S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5571
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 16, 2023
                                ___________
 
 Introduced by M. of A. BRABENEC -- read once and referred to the Commit-
   tee on Education
 
 AN ACT to amend the education law, the real property tax law, the gener-
   al  municipal  law  and  the  state finance law, in relation to school
   property and real property taxes

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The education law is amended by adding a new section 1527-b
 to read as follows:
   §  1527-B.  FUNDING OF MANDATES IMPOSED ON SCHOOL DISTRICTS. 1.  DEFI-
 NITIONS. AS USED IN THIS SECTION, THE FOLLOWING  TERMS  SHALL  HAVE  THE
 FOLLOWING MEANINGS UNLESS THE CONTEXT SHALL OTHERWISE REQUIRE:
   (A) "MANDATE" MEANS:
   (I)  ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM OR
 REQUIRES A HIGHER LEVEL OF SERVICE  FOR  AN  EXISTING  PROGRAM  WHICH  A
 SCHOOL  DISTRICT  ORGANIZED  EITHER  BY  SPECIAL LAWS OR PURSUANT TO THE
 PROVISIONS OF A GENERAL LAW, IS REQUIRED TO PROVIDE; OR
   (II) ANY GENERAL LAW WHICH GRANTS A  NEW  PROPERTY  TAX  EXEMPTION  OR
 INCREASES  AN  EXISTING  PROPERTY  TAX  EXEMPTION  WHICH ANY SUCH SCHOOL
 DISTRICT IS REQUIRED TO PROVIDE.
   (B) "UNFUNDED MANDATE" SHALL MEAN:
   (I) ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM  OR
 REQUIRES  A  HIGHER  LEVEL  OF SERVICE FOR AN EXISTING PROGRAM WHICH ANY
 SUCH SCHOOL DISTRICT IS REQUIRED TO PROVIDE AND WHICH RESULTS IN  A  NET
 ADDITIONAL COST TO SUCH SCHOOL DISTRICT;
   (II)  ANY  ALTERATION  IN FUNDING PROVIDED TO ANY SUCH SCHOOL DISTRICT
 FOR THE PURPOSE OF DEFRAYING THE COSTS OF A PROGRAM WHICH IT IS REQUIRED
 TO PROVIDE, THEREBY RESULTING IN A NET ADDITIONAL COST  TO  SUCH  SCHOOL
 DISTRICT; OR
   (III)  ANY  GENERAL  LAW  WHICH GRANTS A NEW PROPERTY TAX EXEMPTION OR
 INCREASES AN EXISTING PROPERTY  TAX  EXEMPTION  WHICH  ANY  SUCH  SCHOOL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08877-02-3
              

 A. 5571                             2
 
 DISTRICT  IS REQUIRED TO PROVIDE, THERE BY RESULTING IN A NET ADDITIONAL
 COST TO SUCH SCHOOL DISTRICT.
   (C)  "NET  ADDITIONAL COST" MEANS THE COST OR COSTS INCURRED OR ANTIC-
 IPATED TO BE INCURRED WITHIN A ONE YEAR PERIOD BY A SCHOOL  DISTRICT  IN
 PERFORMING  OR  ADMINISTERING  A MANDATE AFTER SUBTRACTING THEREFROM ANY
 REVENUES RECEIVED OR RECEIVABLE BY THE SCHOOL DISTRICT ON ACCOUNT OF THE
 MANDATED PROGRAM OR SERVICE, INCLUDING BUT NOT LIMITED TO:
   (I) FEES CHARGED TO THE RECIPIENTS OF THE MANDATED PROGRAM OR SERVICE;
   (II) STATE OR  FEDERAL  AID  PAID  SPECIFICALLY  OR  CATEGORICALLY  IN
 CONNECTION WITH THE PROGRAM OR SERVICE; AND
   (III)  AN  OFFSETTING  SAVINGS RESULTING FROM THE DIMINUTION OR ELIMI-
 NATION OF ANY OTHER PROGRAM OR  SERVICE  DIRECTLY  ATTRIBUTABLE  TO  THE
 PERFORMANCE OR ADMINISTRATION OF THE MANDATED PROGRAM.
   2.  FUNDING  OF  SCHOOL  DISTRICT  MANDATES. NOTWITHSTANDING ANY OTHER
 PROVISION OF LAW, NO UNFUNDED MANDATE SHALL BE ENACTED WHICH CREATES  AN
 ANNUAL NET ADDITIONAL COST TO ANY SCHOOL DISTRICT IN EXCESS OF TEN THOU-
 SAND  DOLLARS  OR  AN AGGREGATE ANNUAL NET ADDITIONAL COST TO ALL SCHOOL
 DISTRICTS IN EXCESS OF ONE MILLION DOLLARS.
   3. EXEMPTIONS TO THE FUNDING OF SCHOOL DISTRICT MANDATES  REQUIREMENT.
 (A) THE STATE SHALL NOT BE REQUIRED TO FUND ANY NEW OR EXPANDED PROGRAMS
 FOR SCHOOL DISTRICTS IF:
   (I) THE MANDATE IS REQUIRED BY A COURT ORDER OR JUDGMENT;
   (II)  THE  MANDATE  IS  PROVIDED  AT THE OPTION OF THE SCHOOL DISTRICT
 UNDER A LAW OR REGULATION;
   (III) THE MANDATE RESULTS FROM THE PASSAGE  OF  A  HOME  RULE  MESSAGE
 WHEREBY A SCHOOL DISTRICT REQUESTS AUTHORITY TO IMPLEMENT THE PROGRAM OR
 SERVICE  SPECIFIED  IN  THE  STATUTE, AND THE STATUTE IMPOSES COSTS ONLY
 UPON THAT SCHOOL DISTRICT WHICH REQUESTS THE  AUTHORITY  TO  IMPOSE  THE
 PROGRAM OR SERVICE;
   (IV) THE MANDATE IS REQUIRED BY, OR ARISES FROM, AN EXECUTIVE ORDER OF
 THE GOVERNOR EXERCISING HIS OR HER EMERGENCY POWERS;
   (V)  THE MANDATE IS REQUIRED BY STATUTE OR EXECUTIVE ORDER THAT IMPLE-
 MENTS A FEDERAL LAW OR REGULATION AND RESULTS FROM COSTS MANDATED BY THE
 FEDERAL GOVERNMENT TO BE BORNE AT THE LOCAL LEVEL, UNLESS THE STATUTE OR
 EXECUTIVE ORDER RESULTS IN COSTS WHICH EXCEED THE COSTS MANDATED BY  THE
 FEDERAL GOVERNMENT; OR
   (VI)  THE  MANDATE APPLIES TO A SMALL BUSINESS WITH FIFTY EMPLOYEES OR
 LESS.
   (B) EACH ACT ESTABLISHING A MANDATE SHALL PROVIDE THAT  THE  EFFECTIVE
 DATE OF ANY SUCH MANDATE IMPOSED ON SCHOOL DISTRICTS SHALL BE CONSISTENT
 WITH  THE NEEDS OF THE STATE AND SCHOOL DISTRICTS TO PLAN IMPLEMENTATION
 THEREOF, AND ALSO CONSISTENT WITH THE AVAILABILITY OF REQUIRED FUNDS.
   § 2. 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, UPON THE FILING OF A PETITION PURSUANT TO
 PARAGRAPH B OF THIS SUBDIVISION, WITH THE TRUSTEES, THE BOARD OF  EDUCA-
 TION  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 FUNDING FOR SCHOOL  DISTRICT  EXPENSES"  TO
 THE  QUALIFIED  VOTERS OF A SCHOOL 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 CHANCELLOR IN THE CITY OF NEW YORK CERTIFIES
 A. 5571                             3
 
 NO LATER THAN MARCH FIRST THAT SUCH ELECTION WOULD CONFLICT  WITH  RELI-
 GIOUS  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.  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, 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  CERTIFIES  NO  LATER  THAN MARCH FIRST THAT SUCH ELECTION
 WOULD CONFLICT WITH RELIGIOUS OBSERVANCES OF THE FOLLOWING SCHOOL YEAR.
   § 3. 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  PROPERTIES  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 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.
 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%
 A. 5571                             4
 
   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 PROVISIONS 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 FINDING 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 SCHEDULE
 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.
   § 4. The real property tax law is amended by adding a new section  431
 to read as follows:
   §  431.  PERSONS SIXTY-FIVE YEARS OF AGE OR OVER; CAPPED REAL PROPERTY
 SCHOOL TAX RATE. 1. (A) RESIDENTIAL REAL PROPERTY OWNED AND OCCUPIED  BY
 ONE OR MORE PERSONS, EACH OF WHOM IS SIXTY-FIVE YEARS OF AGE OR OVER AND
 MEETS  EACH  OF  THE  REQUIREMENTS FOR THE ENHANCED EXEMPTION FOR SENIOR
 CITIZENS SET FORTH IN SECTION FOUR HUNDRED TWENTY-FIVE OF THIS TITLE, OR
 RESIDENTIAL REAL PROPERTY OWNED AND OCCUPIED BY A MARRIED COUPLE, ONE OF
 WHOM IS SIXTY-FIVE YEARS OF AGE OR OVER AND MEETS EACH OF  THE  REQUIRE-
 MENTS  FOR  THE  ENHANCED  EXEMPTION  FOR  SENIOR  CITIZENS SET FORTH IN
 SECTION FOUR HUNDRED TWENTY-FIVE OF THIS TITLE, SHALL  BE  ELIGIBLE  FOR
 THE  CAPPED  REAL  PROPERTY  SCHOOL  TAX RATE SET FORTH IN THIS SECTION,
 A. 5571                             5
 
 PROVIDED THE SCHOOL DISTRICT, AFTER PUBLIC HEARING, ADOPTS A  RESOLUTION
 PROVIDING THEREFOR.
   (B)  FOR  PURPOSES  OF  THIS  SECTION,  THE TERM "CAPPED REAL PROPERTY
 SCHOOL TAX RATE" SHALL MEAN THE LOWER OF: (I) THE REAL  PROPERTY  SCHOOL
 TAX RATE ESTABLISHED ON THE TAXABLE STATUS DATE NEXT SUCCEEDING THE DATE
 ON WHICH AN ELIGIBLE PERSON ATTAINS THE AGE OF SIXTY-FIVE YEARS; OR (II)
 THE REAL PROPERTY SCHOOL TAX RATE ESTABLISHED ON ANY TAXABLE STATUS DATE
 SUBSEQUENT  TO  THE  DATE ON WHICH AN ELIGIBLE PERSON ATTAINS THE AGE OF
 SIXTY-FIVE YEARS, WHICH IS LOWER THAN THE REAL PROPERTY SCHOOL TAX  RATE
 ESTABLISHED PURSUANT TO SUBPARAGRAPH (I) OF THIS PARAGRAPH.
   (C) THE CAPPED REAL PROPERTY SCHOOL TAX RATE SHALL BE DETERMINED ANNU-
 ALLY  FOR  EACH  ELIGIBLE  PERSON  SIXTY-FIVE  YEARS  OF AGE OR OLDER IN
 ACCORDANCE WITH THE PROVISIONS OF PARAGRAPHS (A) AND (B) OF THIS  SUBDI-
 VISION.
   2.  ANY  PERSON  ELIGIBLE FOR THE CAPPED REAL PROPERTY SCHOOL TAX RATE
 SHALL APPLY ANNUALLY FOR SUCH CAPPED RATE.  SUCH  APPLICATION  SHALL  BE
 MADE  IN  A  MANNER  AND  FORM  DETERMINED BY THE COMMISSIONER AND SHALL
 REQUIRE PROOF OF THE APPLICANT'S AGE. SUCH APPLICATION  SHALL  BE  FILED
 WITH  THE  LOCAL  ASSESSOR ON OR BEFORE THE TAXABLE STATUS DATE FOR SUCH
 DISTRICT.
   3. EVERY SCHOOL DISTRICT SHALL NOTIFY, OR CAUSE TO BE  NOTIFIED,  EACH
 PERSON  OWNING  RESIDENTIAL  REAL PROPERTY IN THE SCHOOL DISTRICT OF THE
 PROVISIONS OF THIS SECTION. THE PROVISIONS OF THIS  SUBDIVISION  MAY  BE
 MET  BY  A  NOTICE  SENT  TO SUCH PERSONS IN SUBSTANTIALLY THE FOLLOWING
 FORM: "RESIDENTIAL REAL PROPERTY OWNED BY PERSONS  SIXTY-FIVE  YEARS  OF
 AGE OR OLDER MAY BE ELIGIBLE FOR A CAPPED REAL PROPERTY SCHOOL TAX RATE.
 TO RECEIVE SUCH CAPPED RATE, ELIGIBLE OWNERS OF QUALIFYING PROPERTY MUST
 FILE  AN APPLICATION WITH THEIR LOCAL ASSESSOR ON OR BEFORE THE APPLICA-
 BLE TAXABLE STATUS DATE. FOR FURTHER INFORMATION,  PLEASE  CONTACT  YOUR
 LOCAL ASSESSOR."
   4.  A SCHOOL DISTRICT WHICH PROVIDES A CAPPED REAL PROPERTY SCHOOL TAX
 RATE FOR PERSONS SIXTY-FIVE YEARS  OF  AGE  OR  OVER  PURSUANT  TO  THIS
 SECTION  SHALL BE ELIGIBLE FOR REIMBURSEMENT BY THE DEPARTMENT OF EDUCA-
 TION, AS APPROVED BY THE COMMISSIONER OF EDUCATION, IN CONSULTATION WITH
 THE EXECUTIVE DIRECTOR OF THE OFFICE OF REAL PROPERTY SERVICES, FOR  ONE
 HUNDRED  PERCENT  OF  THE  DIRECT COST TO SUCH SCHOOL DISTRICT RESULTING
 FROM THE IMPLEMENTATION OF THIS  SECTION.  SUCH  DIRECT  COST  SHALL  BE
 CALCULATED  PURSUANT TO REGULATIONS OF THE COMMISSIONER OF EDUCATION, IN
 CONSULTATION WITH THE COMMISSIONER.   A  CLAIM  FOR  SUCH  REIMBURSEMENT
 SHALL BE MADE BY SUCH SCHOOL DISTRICT IN A MANNER AND FORM PRESCRIBED BY
 THE COMMISSIONER OF EDUCATION.
   §  5.  The  real  property  tax law is amended by adding a new section
 431-a to read as follows:
   § 431-A. PERSONS SIXTY-FIVE YEARS OF AGE OR OLDER; FIXED REAL PROPERTY
 ASSESSED VALUE. 1. RESIDENTIAL REAL PROPERTY OWNED AND OCCUPIED  AS  THE
 PRIMARY  RESIDENCE,  OF  ONE OR MORE PERSONS, EACH OF WHOM IS SIXTY-FIVE
 YEARS OF AGE OR OLDER AND ALL OF WHOM HAVE A COMBINED ANNUAL  INCOME  OF
 ONE HUNDRED THOUSAND DOLLARS OR LESS FOR THE INCOME TAX YEAR IMMEDIATELY
 PRECEDING THE DATE OF APPLICATION OR RESIDENTIAL REAL PROPERTY OWNED AND
 OCCUPIED  AS  THE PRIMARY RESIDENCE, OF A MARRIED COUPLE, ONE OF WHOM IS
 SIXTY-FIVE YEARS OF AGE OR OLDER AND BOTH OF WHOM HAVE A COMBINED ANNUAL
 INCOME OF ONE HUNDRED THOUSAND DOLLARS OR LESS FOR THE INCOME  TAX  YEAR
 IMMEDIATELY PRECEDING THE DATE OF APPLICATION, SHALL BE ELIGIBLE FOR THE
 FIXED REAL PROPERTY ASSESSED VALUE ESTABLISHED BY THIS SECTION.
   2.  FOR  THE  PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE
 THE FOLLOWING MEANINGS:
 A. 5571                             6
 
   (A) "FIXED REAL PROPERTY ASSESSED VALUE" SHALL MEAN THE LOWER OF:
   (I)  THE  ASSESSED  VALUE  OF REAL PROPERTY ESTABLISHED ON THE TAXABLE
 STATUS DATE NEXT SUCCEEDING THE DATE ON WHICH AN ELIGIBLE REAL  PROPERTY
 OWNER ATTAINS THE AGE OF SIXTY-FIVE YEARS; OR
   (II)  THE  ASSESSED  VALUE OF REAL PROPERTY ESTABLISHED ON ANY TAXABLE
 STATUS DATE SUBSEQUENT TO THE DATE UPON WHICH AN ELIGIBLE REAL  PROPERTY
 OWNER  ATTAINS  THE  AGE  OF  SIXTY-FIVE  YEARS, WHICH IS LOWER THAN THE
 ASSESSED VALUE ESTABLISHED PURSUANT TO SUBPARAGRAPH (I)  OF  THIS  PARA-
 GRAPH.
   (B)  "RESIDENTIAL  REAL  PROPERTY"  SHALL  MEAN  ANY ONE OR TWO FAMILY
 DWELLING, INCLUDING CONDOMINIUM UNITS AND COOPERATIVE UNITS.
   (C) "INCOME" SHALL MEAN THE "ADJUSTED GROSS INCOME" FOR FEDERAL INCOME
 TAX PURPOSES AS REPORTED ON THE APPLICANT'S FEDERAL OR STATE INCOME  TAX
 RETURN  FOR  THE  APPLICABLE  INCOME TAX YEAR, SUBJECT TO ANY SUBSEQUENT
 AMENDMENTS  OR  REVISIONS,  REDUCED  BY  DISTRIBUTIONS,  TO  THE  EXTENT
 INCLUDED  IN  FEDERAL ADJUSTED GROSS INCOME, RECEIVED FROM AN INDIVIDUAL
 RETIREMENT ACCOUNT AND AN INDIVIDUAL RETIREMENT ANNUITY;  PROVIDED  THAT
 IF NO SUCH RETURN WAS FILED FOR THE APPLICABLE INCOME TAX YEAR, "INCOME"
 SHALL MEAN THE ADJUSTED GROSS INCOME THAT WOULD HAVE BEEN SO REPORTED IF
 SUCH A RETURN HAD BEEN FILED.
   3. EACH TAXING AUTHORITY SHALL ANNUALLY DETERMINE THE FIXED REAL PROP-
 ERTY ASSESSED VALUE FOR EACH ELIGIBLE REAL PROPERTY OWNER.
   4.  ANY  PERSON  ELIGIBLE  FOR  THE FIXED REAL PROPERTY ASSESSED VALUE
 SHALL ANNUALLY APPLY TO THE APPROPRIATE ASSESSING UNIT  FOR  SUCH  FIXED
 ASSESSED  VALUE.  SUCH APPLICATION SHALL BE MADE IN SUCH MANNER AND FORM
 AS SHALL BE DETERMINED BY THE COMMISSIONER, AND SHALL REQUIRE  PROOF  OF
 THE APPLICANTS' AGES AND INCOMES. SUCH APPLICATIONS SHALL BE FILED ON OR
 BEFORE THE TAXABLE STATUS DATE OF THE REAL PROPERTY.
   5.  EVERY  ASSESSING  UNIT  SHALL NOTIFY OR CAUSE TO BE NOTIFIED, EACH
 PERSON OWNING RESIDENTIAL REAL PROPERTY WITHIN ITS JURISDICTION, OF  THE
 PROVISIONS OF THIS SECTION. SUCH NOTICE SHALL BE AND INCLUDE WORDS WHICH
 ARE  SUBSTANTIALLY  THE  FOLLOWING:  "RESIDENTIAL REAL PROPERTY OWNED BY
 PERSONS SIXTY-FIVE YEARS OF AGE OR OLDER AND HAVING  A  COMBINED  ANNUAL
 INCOME  OF  ONE  HUNDRED THOUSAND DOLLARS OR LESS, MAY BE ELIGIBLE FOR A
 FIXED REAL PROPERTY ASSESSED  VALUE.  TO  RECEIVE  SUCH  FIXED  ASSESSED
 VALUE, ELIGIBLE OWNERS OF QUALIFYING REAL PROPERTY MUST FILE AN APPLICA-
 TION WITH THEIR LOCAL ASSESSOR ON OR BEFORE THE TAXABLE STATUS DATE. FOR
 FURTHER INFORMATION, PLEASE CONTACT YOUR LOCAL ASSESSOR."
   §  6.  The  real  property  tax law is amended by adding a new section
 906-a to read as follows:
   § 906-A. EFFECT OF FIXED REAL  PROPERTY  ASSESSED  VALUE  UPON  TAXING
 AUTHORITIES;  STATE  AID.  1. LEVY OF TAXES; DETERMINATION OF TAXES DUE.
 THE AMOUNT OF TAXES TO BE LEVIED FOR ANY TAXABLE YEAR  SHALL  BE  DETER-
 MINED WITHOUT REGARD TO THE FACT THAT STATE AID WILL BE PAYABLE PURSUANT
 TO THIS SECTION. IN ADDITION, THE TAX RATE FOR ANY TAXABLE YEAR SHALL BE
 DETERMINED  AS  IF  NO  PARCELS  ARE  SUBJECT  TO  A FIXED REAL PROPERTY
 ASSESSED VALUE PURSUANT TO SECTION FOUR  HUNDRED  THIRTY-ONE-A  OF  THIS
 CHAPTER.  HOWEVER,  THE  TAX  RATE SO DETERMINED SHALL BE APPLIED TO THE
 TAXABLE ASSESSED VALUE OF EACH PARCEL AFTER ACCOUNTING FOR ALL  APPLICA-
 BLE EXEMPTIONS.
   2.  TAX  SAVINGS.  THE  TAX SAVINGS FOR EACH PARCEL SUBJECT TO A FIXED
 REAL PROPERTY ASSESSED VALUE PURSUANT TO SECTION  FOUR  HUNDRED  THIRTY-
 ONE-A  OF THIS CHAPTER SHALL BE COMPUTED BY SUBTRACTING THE AMOUNT ACTU-
 ALLY LEVIED AGAINST THE PARCEL FROM THE  AMOUNT  THAT  WOULD  HAVE  BEEN
 LEVIED  IF  NOT  FOR THE FIXED REAL PROPERTY ASSESSED VALUE. A STATEMENT
 SHALL THEN BE PLACED ON THE TAX BILL FOR THE PARCEL IN SUBSTANTIALLY THE
 A. 5571                             7
 
 FOLLOWING FORM: "YOUR TAX SAVINGS THIS YEAR  RESULTING  FROM  THE  FIXED
 REAL PROPERTY ASSESSED VALUE IS $      ."
   3.  STATE  AID. (A) THE TOTAL TAX SAVINGS DULY PROVIDED BY EACH TAXING
 AUTHORITY PURSUANT TO THIS SECTION SHALL BE A STATE CHARGE, WHICH  SHALL
 BE PAYABLE AS PROVIDED IN THIS SUBDIVISION.
   (B)  A  TAXING  AUTHORITY  SEEKING  STATE AID PURSUANT TO THIS SECTION
 SHALL SUBMIT AN APPLICATION THEREFOR TO THE COMMISSIONER.  THE  APPLICA-
 TION  SHALL  INCLUDE SUCH INFORMATION AS THE COMMISSIONER SHALL REQUIRE.
 IN ADDITION, EACH TAXING AUTHORITY SHALL FILE A COPY OF SUCH APPLICATION
 WITH THE COUNTY CLERK OF THE COUNTY IN WHICH AN ELIGIBLE PARCEL IS SITU-
 ATE.
   (C) UPON APPROVING AN APPLICATION  FOR  STATE  AID  PURSUANT  TO  THIS
 SECTION,  THE COMMISSIONER SHALL COMPUTE AND CERTIFY THE AMOUNTS PAYABLE
 TO THE TAXING AUTHORITY. SUCH STATE AID SHALL BE PAYABLE UPON THE  AUDIT
 AND  WARRANT  OF  THE  STATE  COMPTROLLER  FROM  VOUCHERS  CERTIFIED AND
 APPROVED BY THE COMMISSIONER.
   (D) THE COMMISSIONER MAY AUDIT AN APPLICATION FOR STATE  AID  PURSUANT
 TO  THIS  SECTION  WITHIN ONE YEAR AFTER AUTHORIZING PAYMENT THEREON. IF
 THE COMMISSIONER SHOULD DISCOVER THAT A TAXING AUTHORITY HAS RECEIVED  A
 GREATER  OR  LESSER AMOUNT OF SUCH AID THAN IT SHOULD HAVE RECEIVED, THE
 COMMISSIONER SHALL SO NOTIFY THE TAXING AUTHORITY, AND SHALL  CAUSE  THE
 NEXT  PAYMENT OF SUCH AID TO THE TAXING AUTHORITY TO BE ADJUSTED ACCORD-
 INGLY.
   4. INSTALLMENT PAYMENTS. WHEN  REAL  PROPERTY  TAXES  ARE  PAYABLE  IN
 INSTALLMENTS  PURSUANT  TO LAW, THE TAX SAVINGS PROVIDED BY THIS SECTION
 SHALL BE APPLY PROPORTIONALLY AGAINST THE RESPECTIVE INSTALLMENTS.
   5. UNTIMELY PAYMENT OF TAXES. WHEN TAXES ON A PROPERTY  SUBJECT  TO  A
 FIXED  REAL  PROPERTY  ASSESSED  VALUE  PURSUANT TO SECTION FOUR HUNDRED
 THIRTY-ONE-A OF THIS CHAPTER ARE NOT PAID IN A TIMELY MANNER,  INTEREST,
 PENALTIES AND ANY OTHER APPLICABLE CHARGES SHALL BE IMPOSED ONLY AGAINST
 THE BALANCE DUE AFTER THE TAX SAVINGS PROVIDED BY THIS SECTION HAVE BEEN
 DEDUCTED FROM THE TAXES OWED.
   §  7. Paragraph (a) of subdivision 2 of section 1573 of the real prop-
 erty tax law, as amended by section 1 of part Y of  chapter  56  of  the
 laws  of 2010, and as further amended by subdivision (b) of section 1 of
 part W of chapter 56 of the laws of 2010, is amended and a new  subdivi-
 sion 3-b is added to read as follows:
   (a) State assistance pursuant to subdivision one of this section shall
 be  payable in an amount not to exceed [five] FIFTEEN dollars per parcel
 for an assessment roll  upon  which  a  revaluation  is  implemented  in
 accordance  with  an  approved  plan,  and not to exceed two dollars per
 parcel for any assessment roll upon which a revaluation  is  not  imple-
 mented  in accordance with an approved plan. The amount payable on a per
 parcel basis shall exclude parcels which are wholly exempt  or  assessed
 by the commissioner.
   3-B. (A) STATE ASSISTANCE SHALL BE PAYABLE IN A ONE-TIME PAYMENT OF UP
 TO  TWO DOLLARS PER PARCEL, EXCLUDING PARCELS WHICH ARE WHOLLY EXEMPT OR
 ASSESSED BY THE COMMISSIONER, TO EVERY  ASSESSING  UNIT  WHEN  ALL  SUCH
 ASSESSING  UNITS  WHICH COMPRISE A SCHOOL DISTRICT COMPOSED OF MORE THAN
 ONE ASSESSING UNIT REVALUE THEIR  ASSESSMENTS  AT  ONE  HUNDRED  PERCENT
 VALUE  DURING  THE SAME YEAR, AND THE ASSESSMENT ROLLS DERIVED THEREFROM
 ARE FILED IN TWO THOUSAND TWENTY-THREE OR THEREAFTER. THE PROVISIONS  OF
 THIS  PARAGRAPH  SHALL  APPLY  ONLY  TO THOSE PARCELS WITHIN SUCH SCHOOL
 DISTRICT COMPOSED OF MULTIPLE ASSESSING UNITS, WHEN ALL  SUCH  ASSESSING
 UNITS  REVALUE  ASSESSMENTS AT ONE HUNDRED PERCENT VALUE DURING THE SAME
 YEAR.
 A. 5571                             8
 
   (B) NO PROVISION OF THIS SUBDIVISION SHALL  BE  DEEMED  TO  LIMIT  THE
 ELIGIBILITY  OF  ANY ASSESSING UNIT TO RECEIVE STATE ASSISTANCE PURSUANT
 TO SUBDIVISIONS ONE AND TWO OF THIS SECTION IN  ADDITION  TO  THE  STATE
 ASSISTANCE GRANTED PURSUANT TO THIS SUBDIVISION.
   (C)  IF  AN  ASSESSING  UNIT,  AFTER  HAVING RECEIVED STATE ASSISTANCE
 PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION, REVERTS TO ASSESSMENT  AT
 LESS  THAN  ONE HUNDRED PERCENT OF THE VALUE WITHIN FOUR YEARS AFTER THE
 RECEIPT OF SUCH AID, SUCH ASSESSING UNIT SHALL  REMIT  TO  THE  STATE  A
 PRORATED PORTION OF THE AID RECEIVED, EXCEPT THAT IN THE CASE OF A COUN-
 TY  ASSESSING  UNIT,  IF A CITY OR TOWN THEREIN REVERTS TO ASSESSMENT AT
 LESS THAN ONE HUNDRED PERCENT OF VALUE WITHIN FIVE YEARS AFTER THE COUN-
 TY'S RECEIPT OF SUCH AID, THE COUNTY SHALL REMIT TO THE STATE A PRORATED
 PORTION OF THE AID RECEIVED.
   § 8. The general municipal law is amended by adding a new  section  26
 to read as follows:
   §  26.  FUNDING  OF MANDATES. 1. DEFINITIONS. AS USED IN THIS SECTION,
 THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS UNLESS THE CONTEXT
 SHALL OTHERWISE REQUIRE:
   (A) "MANDATE" MEANS:
   (I) ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM  OR
 REQUIRES  A  HIGHER  LEVEL  OF  SERVICE  FOR AN EXISTING PROGRAM WHICH A
 MUNICIPAL CORPORATION IS REQUIRED TO PROVIDE; OR
   (II) ANY GENERAL LAW WHICH GRANTS A  NEW  PROPERTY  TAX  EXEMPTION  OR
 INCREASES  AN EXISTING PROPERTY TAX EXEMPTION WHICH THE MUNICIPAL CORPO-
 RATION IS REQUIRED TO PROVIDE.
   (B) "UNFUNDED MANDATE" SHALL MEAN:
   (I) ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM  OR
 REQUIRES  A  HIGHER  LEVEL  OF  SERVICE  FOR AN EXISTING PROGRAM WHICH A
 MUNICIPAL CORPORATION IS REQUIRED TO PROVIDE AND WHICH RESULTS IN A  NET
 ADDITIONAL COST TO THE MUNICIPAL CORPORATION;
   (II) ANY ALTERATION IN FUNDING PROVIDED TO A MUNICIPAL CORPORATION FOR
 THE  PURPOSE OF DEFRAYING THE COSTS OF A PROGRAM WHICH IT IS REQUIRED TO
 PROVIDE, THEREBY RESULTING IN A NET ADDITIONAL  COST  TO  THE  MUNICIPAL
 CORPORATION; OR
   (III)  ANY  GENERAL  LAW  WHICH GRANTS A NEW PROPERTY TAX EXEMPTION OR
 INCREASES AN EXISTING PROPERTY TAX EXEMPTION WHICH THE MUNICIPAL  CORPO-
 RATION  IS  REQUIRED  TO  PROVIDE, THEREBY RESULTING IN A NET ADDITIONAL
 COST TO THE MUNICIPAL CORPORATION.
   (C) "NET ADDITIONAL COST" MEANS THE COST OR COSTS INCURRED  OR  ANTIC-
 IPATED  TO BE INCURRED WITHIN A ONE YEAR PERIOD BY A LOCAL GOVERNMENT IN
 PERFORMING OR ADMINISTERING A MANDATE AFTER  SUBTRACTING  THEREFROM  ANY
 REVENUES  RECEIVED  OR  RECEIVABLE BY THE LOCAL GOVERNMENT ON ACCOUNT OF
 THE MANDATED PROGRAM OR SERVICE, INCLUDING BUT NOT LIMITED TO:
   (I) FEES CHARGED TO THE RECIPIENTS OF THE MANDATED PROGRAM OR SERVICE;
   (II) STATE OR  FEDERAL  AID  PAID  SPECIFICALLY  OR  CATEGORICALLY  IN
 CONNECTION WITH THE PROGRAM OR SERVICE; AND
   (III)  AN  OFFSETTING  SAVINGS RESULTING FROM THE DIMINUTION OR ELIMI-
 NATION OF ANY OTHER PROGRAM OR  SERVICE  DIRECTLY  ATTRIBUTABLE  TO  THE
 PERFORMANCE OR ADMINISTRATION OF THE MANDATED PROGRAM.
   2.  FUNDING  OF  MUNICIPAL  CORPORATION  MANDATES. NOTWITHSTANDING ANY
 OTHER PROVISION OF LAW, NO  UNFUNDED  MANDATE  SHALL  BE  ENACTED  WHICH
 CREATES  AN  ANNUAL  NET ADDITIONAL COST TO ANY MUNICIPAL CORPORATION IN
 EXCESS OF TEN THOUSAND DOLLARS OR AN  AGGREGATE  ANNUAL  NET  ADDITIONAL
 COST TO ALL MUNICIPAL CORPORATIONS IN EXCESS OF ONE MILLION DOLLARS.
 A. 5571                             9
 
   3.  EXCEPTIONS  TO  THE  FUNDING OF THE MUNICIPAL CORPORATION MANDATES
 REQUIREMENT. (A) THE STATE SHALL NOT BE REQUIRED  TO  FUND  ANY  NEW  OR
 EXPANDED PROGRAMS IF:
   (I) THE MANDATE IS REQUIRED BY A COURT ORDER OR JUDGMENT;
   (II)  THE  MANDATE  IS  PROVIDED AT THE OPTION OF THE LOCAL GOVERNMENT
 UNDER A LAW, REGULATION, RULE, OR ORDER THAT IS PERMISSIVE  RATHER  THAN
 MANDATORY;
   (III)  THE  MANDATE  RESULTS  FROM  THE PASSAGE OF A HOME RULE MESSAGE
 WHEREBY A LOCAL GOVERNMENT REQUESTS AUTHORITY TO IMPLEMENT  THE  PROGRAM
 OR  SERVICE SPECIFIED IN THE STATUTE, AND THE STATUTE IMPOSES COSTS ONLY
 UPON THAT LOCAL GOVERNMENT WHICH REQUESTS THE AUTHORITY  TO  IMPOSE  THE
 PROGRAM OR SERVICE;
   (IV) THE MANDATE IS REQUIRED BY, OR ARISES FROM, AN EXECUTIVE ORDER OF
 THE GOVERNOR EXERCISING HIS OR HER EMERGENCY POWERS; OR
   (V)  THE MANDATE IS REQUIRED BY STATUTE OR EXECUTIVE ORDER THAT IMPLE-
 MENTS A FEDERAL LAW OR REGULATION AND RESULTS FROM COSTS MANDATED BY THE
 FEDERAL GOVERNMENT TO BE BORNE AT THE LOCAL LEVEL, UNLESS THE STATUTE OR
 EXECUTIVE ORDER RESULTS IN COSTS WITH EXCEED THE COSTS MANDATED  BY  THE
 FEDERAL GOVERNMENT.
   (B)  EACH  ACT ESTABLISHING A MANDATE SHALL PROVIDE THAT THE EFFECTIVE
 DATE OF ANY SUCH MANDATE IMPOSED  ON  MUNICIPAL  CORPORATIONS  SHALL  BE
 CONSISTENT  WITH  THE  NEEDS  OF THE STATE AND MUNICIPAL CORPORATIONS TO
 PLAN IMPLEMENTATION THEREOF AND  CONSISTENT  WITH  THE  AVAILABILITY  OF
 REQUIRED FUNDS.
   § 9. The state finance law is amended by adding a new section 99-qq to
 read as follows:
   §  99-QQ.  THE STATE EDUCATION FUND. 1. THERE IS HEREBY ESTABLISHED IN
 THE JOINT CUSTODY OF THE COMPTROLLER AND THE COMMISSIONER OF  EDUCATION,
 A SPECIAL FUND TO BE KNOWN AS THE "STATE EDUCATION FUND".
   2.  SUCH  FUND SHALL CONSIST OF ALL REVENUES RECEIVED FROM THE SALE OF
 ANY LOTTERY TICKET WITHIN THE STATE LESS ANY EXPENDITURES  REQUIRED  FOR
 THE OPERATION OF THE LOTTERY.
   3.  THE  MONEYS IN SUCH FUND SHALL BE APPROPRIATED OR TRANSFERRED ONLY
 FOR (I) ELEMENTARY AND SECONDARY EDUCATION FOR SCHOOLS  WHICH  CHOSE  TO
 USE  THE  OPTIONAL  SYSTEM FOR STATE FUNDING OF SCHOOL DISTRICT EXPENSES
 UNDER SUBDIVISION FORTY OF SECTION THIRTY-SIX HUNDRED TWO OF THE  EDUCA-
 TION LAW AND (II) MUNICIPALITIES AND SCHOOL DISTRICTS WHICH HAVE IMPOSED
 ON THEM UNFUNDED MANDATES, AS SUCH TERM IS DEFINED IN SECTION TWENTY-SIX
 OF THE GENERAL MUNICIPAL LAW.
   4.  MONEYS  SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND WARRANT OF
 THE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY  THE  COMMISSIONER
 OF EDUCATION.
   §  10.  1.  The  New  York  state comptroller in coordination with the
 commissioners of state departments shall see that an extensive and inde-
 pendent audit is conducted on all  state  departments  and  agencies  to
 identify potential cost saving measures and wasteful spending.
   2.  After the conclusion of the audit, the comptroller in coordination
 with the commissioners of state departments shall ensure all  identified
 cost saving measures are implemented and wasteful spending is ended. All
 monies  saved  from  the implementation of such cost saving measures and
 monies retained from the reduction of wasteful spending shall be  depos-
 ited  into  the education fund established by section 99-qq of the state
 finance law.
   § 11. 1. The legislature hereby declares that the  real  property  tax
 system in the state of New York needs to be examined and restructured in
 order to provide significant property tax relief for the citizens of the
 A. 5571                            10
 
 state.  As such, it is determined that a blue ribbon commission on prop-
 erty tax reform shall be established to examine the current  ad  valorem
 property  tax  system and local education financing system of the state.
 Such  commission shall submit a report and recommendations to the gover-
 nor and the legislature upon completion of such examination.
   2. A blue ribbon commission on property tax reform is  hereby  created
 to examine, evaluate and make recommendations on alternatives or modifi-
 cations  to  the  existing  ad  valorem real property tax system in this
 state and alternative  sources  of  funding  for  local  education.  The
 commission shall be charged with examining and making recommendations on
 specific areas of reform for local governments and school districts with
 the goal of mitigating and reducing the property tax burden in the state
 of  New York. The subject areas to be examined shall include, but not be
 limited to, the following:
   (a) Accountability:
   (i) inspector general for schools and local governments;
   (ii) enhanced public disclosure of budget data; and
   (iii) program to eliminate waste and fraud.
   (b)  Governance  and  structure  of  local  governments   and   school
 districts:
   (i) shared services and/or consolidation of personnel and services;
   (ii)  shared  services  and/or  consolidation  of  governmental  units
 including special districts;
   (iii) size of municipal and school district governing boards; and
   (iv) the school district election process and oversight.
   (c) Property assessments:
   (i) property valuation process by local assessors;
   (ii) equalization rate process used by the  office  of  real  property
 services;
   (iii) countywide versus local assessment system;
   (iv)  review  of  state  payments to local governments for state owned
 land; and
   (v) the definition, limits, qualifications of tax exempt properties.
   (d) Spending and tax controls:
   (i) limits on local levy growth;
   (ii) limits on local tax rate growth;
   (iii) limits on local spending growth;
   (iv) prohibition on unfunded state mandates on local  governments  and
 school districts;
   (v)  other  state's  limits on local spending and/or taxing authority;
 and
   (vi) a circuit breaker to limit percentage of income spent on property
 taxes.
   (e) Potential alternative sources of funding to property taxes:
   (i) local/regional/state income tax;
   (ii) sales tax;
   (iii) blended revenue system; and
   (iv) other potential revenue sources.
   3. The blue ribbon commission on property tax reform shall be composed
 of eleven members. The members, each to serve a term of one  year  shall
 be  appointed as follows: three members shall be appointed by the gover-
 nor; three members shall be appointed by the temporary president of  the
 senate; three members shall be appointed by the speaker of the assembly;
 one  member  shall  be appointed by the minority leader of the assembly;
 and one member shall be appointed by the minority leader of the  senate.
 Of  the members appointed by the governor, one shall be an expert in the
 A. 5571                            11
 
 field of municipal finance, one shall be  an  expert  in  the  field  of
 education  finance,  and  one  shall be an expert on assessment adminis-
 tration. The commission shall elect a chair, a vice-chair and  a  secre-
 tary from amongst its members. Notwithstanding the provisions of section
 74  of the public officers law, section 806 of the general municipal law
 or any other provision of law, membership on the commission of any state
 or municipal officer or employee shall not constitute the  violation  of
 any  code of ethics or a conflict of interest. The commission shall meet
 at least monthly. Commissioner  members  shall  chair  subcommittees  to
 fully  examine  the  five  areas  of  reform. These subcommittees may be
 appointed by the commission members.  The subcommittees shall meet regu-
 larly and report back to the full commission. Vacancies in  the  member-
 ship  of  the  commission  and among its officers shall be filled in the
 manner provided for original appointments.
   4. The commission may employ and at pleasure remove such personnel  as
 it may deem necessary for the performance of its functions and fix their
 compensation within the amount made available therefor.
   5.  The  commission  may meet within and without the state, shall hold
 public hearings, and shall have all the powers of a legislative  commit-
 tee pursuant to the legislative law.
   6.  The  members  of  the commission shall receive no compensation for
 their services, but shall be allowed their actual and necessary expenses
 incurred in the performance of their duties pursuant to this act.
   7. To the maximum extent feasible, the commission shall be entitled to
 request and receive, and shall utilize and be provided with such facili-
 ties, resources and data of any  department,  division,  board,  bureau,
 commission  of  agency of the state or any political subdivision thereof
 as it may reasonably request to properly carry out its powers and duties
 pursuant to this act.
   8. The blue ribbon commission on property  tax  reform  shall  make  a
 final  report  to  the  governor  and  the  legislature of its findings,
 conclusions and recommendations on or before December 1, 2025, and shall
 submit with such report such legislative proposals as it deems necessary
 to implement its recommendations.
   § 12. This act shall take effect April 1, 2023 and shall apply to  any
 general  or  special  law imposing mandates on municipal corporations or
 school districts enacted on or after such effective date.