S T A T E O F N E W Y O R K
________________________________________________________________________
7761
2023-2024 Regular Sessions
I N A S S E M B L Y
June 7, 2023
___________
Introduced by M. of A. THIELE -- read once and referred to the Committee
on Local Governments
AN ACT to amend the village law and the general municipal law, in
relation to establishing the village incorporation commission
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph f of subdivision 1 of section 2-202 of the
village law, subparagraph 2 as amended by chapter 181 of the laws of
2004, is amended to read as follows:
f. Filing and deposit. (1) Filing. The original petition shall be
filed with [a supervisor of the town in which all or the greatest part
of such territory is located. Duplicate originals, photocopies or other
similar reproductions of the original petition shall be filed with a
supervisor of each other town in which any portion of such territory is
located] THE VILLAGE INCORPORATION COMMISSION ESTABLISHED PURSUANT TO
SECTION 2-259 OF THIS ARTICLE.
(2) Deposit. At the time of filing of the petition there shall be
deposited with [each supervisor with whom the original or a copy of the
original is filed] THE COMMISSION, the sum of six thousand dollars to
pay the cost of posting, publishing and serving required notices, steno-
graphic services and services of inspectors of election in the event
incorporation is not effected.
§ 2. Section 2-204 of the village law, as amended by section 25 of
part X of chapter 62 of the laws of 2003, is amended to read as follows:
§ 2-204 Notice of hearing. Within twenty days after the filing of such
petition or copies thereof, [each supervisor with whom same were filed]
THE VILLAGE INCORPORATION COMMISSION ESTABLISHED PURSUANT TO SECTION
2-259 OF THIS ARTICLE shall cause to be posted in five public places [in
that part of such territory located in his town] LOCATED IN THE TERRITO-
RY WHERE SUCH VILLAGE SHALL BE INCORPORATED and also to be published at
least twice in the newspaper or newspapers designated pursuant to subdi-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11710-05-3
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vision eleven of section sixty-four of the town law, a joint notice [of
all such supervisors] ISSUED BY THE COMMISSION: that a petition for the
incorporation of the village of (naming it) has been received; that at a
place in such territory and on a day, not less than twenty nor more than
thirty days after the date of the posting and first publication of such
notice, which date and place shall be specified therein, a hearing will
be had upon such petition; that such petition will be available for
public inspection in the office of each town clerk until the date of
such hearing; that the purpose of the hearing is to consider the legal
sufficiency of the petition; that objections to the legal sufficiency of
the petition must be in writing and signed by one or more of the resi-
dents of such town; and that any group of persons having one or more
objections in common may make designation in writing and signed by them
of at least one but no more than three persons giving the full names and
addresses on whom and at which addresses all papers required to be
served in connection with the proceeding for incorporation shall be
served. A majority of such designees must reside in such town or towns.
In the absence of any other suitable place, such hearing shall be held
in a school building, if any, located in such territory. If such terri-
tory is located in more than one town the hearing shall be noticed and
publicized as a joint hearing of all such towns. For the purposes of
this section, in the event that the town maintains a website, one of the
posting requirements required by this section may be fulfilled by post-
ing such information on the town's website.
§ 3. Section 2-206 of the village law, paragraph b of subdivision 1 as
amended by chapter 167 of the laws of 1985, paragraph e of subdivision 1
as amended by chapter 561 of the laws of 1975 and subdivision 3 as
amended by chapter 976 of the laws of 1973, is amended to read as
follows:
§ 2-206 Proceeding on hearing. 1. [The supervisor, or supervisors if a
joint hearing, with whom the petition or copies thereof, were filed,]
THE VILLAGE INCORPORATION COMMISSION ESTABLISHED PURSUANT TO SECTION
2-259 OF THIS ARTICLE shall meet at the time and place specified in such
notice and shall hear objections which may be presented as to the [legal
sufficiency of the petition for] incorporation based upon any of the
following grounds:
a. That a person signing such petition was not qualified therefor;
b. If it is alleged that the petition is submitted on the basis that
the persons signing such petition constitute twenty per cent of the
residents in such territory qualified to vote for officers of a town in
which all or part of such territory is located, that such allegation is
false;
c. [If it is alleged that the petition is submitted on the basis that
the persons signing such petition are the owners of more than fifty
percent in assessed valuation of the real property in such territory or
in full valuation of the real property in each part of each town in such
territory and computed separately for each such part, as the case may
be, assessed upon the last completed assessment roll or rolls of the
town or towns in which all or part of such territory is located, that
such allegation is false;
d.] That such territory is part of a city or village;
[e.] D. That if such territory is less than an entire town, it
contains more than five square miles and the limits of such territory
are not coterminous with the entire boundaries of one school, fire, fire
protection, fire alarm, town special or town improvement district and
the limits of such territory are not coterminous with parts of the boun-
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daries of more than one school, fire, fire protection, fire alarm, town
special or town improvement district, all of which are wholly contained
within such limits and within one town;
[f.] E. That such territory does not contain a population of at least
[five hundred] TWO THOUSAND regular inhabitants;
[g.] F. That the petition in any other specified respect does not
conform to the requirements of this article; OR
G. THAT A STUDY HAS NOT BEEN CONDUCTED ON THE FISCAL, SERVICE, AND
TAXATION INTERESTS OF THE POPULATION WHICH WOULD CONSTITUTE THE RESI-
DENTS OF SUCH VILLAGE OR THE POPULATION WHICH CONSTITUTES THE RESIDENTS
OF SUCH TOWN IN WHICH SUCH VILLAGE WOULD BE ESTABLISHED; OR
H. THAT THE ESTABLISHMENT OF SUCH VILLAGE IS NOT IN THE FISCAL,
SERVICE, AND TAXATION INTERESTS OF THE POPULATION WHICH WOULD CONSTITUTE
THE RESIDENTS OF SUCH VILLAGE OR THE POPULATION WHICH CONSTITUTES THE
RESIDENTS OF SUCH TOWN IN WHICH SUCH VILLAGE WOULD BE ESTABLISHED.
2. The [supervisor of the town in which the entire territory, or the
greatest portion of such territory is located] COMMISSION shall conduct
the hearing.
3. All objections must be in writing and signed by one or more resi-
dents qualified to vote for town offices a town in which all or part of
such territory of the proposed village is located. Testimony as to
objections may be taken at the hearing which shall be reduced to writing
and subscribed by those testifying. The burden of proof shall be on the
objectors. All written objections and signed testimony shall clearly
state the name and address of the objector.
4. The hearing may be adjourned but must be concluded within twenty
days from the date fixed in the notice of hearing.
§ 3-a. Paragraph g of subdivision 1 of section 2-206 of the village
law is relettered paragraph h and a new paragraph g is added to read as
follows:
G. THAT A STUDY HAS NOT BEEN CONDUCTED ON THE FISCAL, SERVICE, AND
TAXATION INTERESTS OF THE POPULATION WHICH WOULD CONSTITUTE THE RESI-
DENTS OF SUCH VILLAGE OR THE POPULATION WHICH CONSTITUTES THE RESIDENTS
OF SUCH TOWN IN WHICH SUCH VILLAGE WOULD BE ESTABLISHED; OR
§ 4. Section 2-208 of the village law is amended to read as follows:
§ 2-208 Decision as to [legal sufficiency of petition] VILLAGE ESTAB-
LISHMENT. 1. Within ten days after such hearing is concluded the
[supervisor or supervisors jointly] VILLAGE INCORPORATION COMMISSION
ESTABLISHED PURSUANT TO SECTION 2-259 OF THIS ARTICLE shall determine
whether the petition complies with the requirements of this article and
[jointly] shall make and sign a decision [accordingly] AS TO WHETHER A
VILLAGE INCORPORATION SHALL PROCEED TO ELECTION PURSUANT TO THE CRITERIA
ESTABLISHED IN SECTION 2-259 OF THIS ARTICLE. [If such supervisors
cannot agree, the decision shall be deemed to be adverse to the peti-
tion.] If the decision be adverse to the petition, the decision shall
contain a brief statement of the reasons on which the adverse decision
is based [or the reasons on which the supervisor or supervisors deciding
adversely to the petition were unable to join in a unanimous decision
sustaining the petition].
2. The original COPY of the decision, copies of the notice of the
hearing together with affidavits of posting and publishing same, the
written objections and the minutes of proceedings taken on the hearing
including signed testimony shall be filed by [such supervisor or super-
visors] THE COMMISSION within fifteen days after the hearing is
concluded, with the town clerk of the same town in which the original
copy of the petition was filed. Duplicate copies of the said papers
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shall be filed with the town clerks of all other towns in which any part
of such territory is located.
3. If no proceeding be instituted to review such decision within thir-
ty days after such filing of the original copy thereof, the decision
shall be final and conclusive. In the event that the decision is adverse
to the petition, a new proceeding for incorporation may be commenced
immediately.
§ 5. Subdivision 1 of section 2-210 of the village law is amended to
read as follows:
1. The decision of [the supervisor or supervisors] THE VILLAGE INCOR-
PORATION COMMISSION ESTABLISHED PURSUANT TO SECTION 2-259 OF THIS ARTI-
CLE as to [the legal sufficiency of the petition] WHETHER A VILLAGE
INCORPORATION SHALL PROCEED TO ELECTION shall be subject to judicial
review in the manner provided in article seventy-eight of the civil
practice law and rules. Such proceeding may be brought on the ground or
grounds that said decision is illegal, based on insufficient evidence,
or contrary to the weight of evidence. If the court determines that
additional testimony or evidence is necessary for the proper disposition
of the matter it may take such evidence or testimony or appoint a refer-
ee to take such evidence or testimony as it may direct and report the
same to the court with his findings of fact and conclusions of law which
shall constitute a part of the proceeding upon which the determination
of the court shall be made. The court may reverse or affirm on the basis
of law and fact as determined by the court.
§ 6. Section 2-236 of the village law, as amended by chapter 181 of
the laws of 2004, is amended to read as follows:
§ 2-236 Payment of expenses incurred in proceedings for incorporation
if village not incorporated. If the incorporation of the proposed
village be not effected by the proceedings authorized in this article,
the expenses incurred by the towns in which any part of such territory
is located for payment of cost of posting, publishing and serving
required notices, stenographic services and services of inspectors of
election shall be paid from the fund deposited with the [supervisor]
VILLAGE INCORPORATION COMMISSION ESTABLISHED PURSUANT TO SECTION 2-259
OF THIS ARTICLE. If such fund so deposited is not sufficient to pay all
of such expenses, the costs in excess of such fund shall be a general
town charge. Any unexpended balance of such fund shall become a part of
the general fund of the town.
§ 7. The village law is amended by adding a new section 2-259 to read
as follows:
§ 2-259 VILLAGE INCORPORATION COMMISSION. 1. A. THERE IS HEREBY ESTAB-
LISHED WITHIN THE DEPARTMENT OF STATE A VILLAGE INCORPORATION COMMIS-
SION. THE COMMISSION SHALL CONSIST OF THREE MEMBERS APPOINTED AS
FOLLOWS:
(1) ONE MEMBER APPOINTED BY THE SECRETARY OF STATE;
(2) ONE MEMBER APPOINTED BY THE COMPTROLLER; AND
(3) ONE MEMBER APPOINTED BY THE ATTORNEY GENERAL.
B. EACH MEMBER OF THE COMMISSION SHALL SERVE A TERM OF FOUR YEARS.
THE MEMBERS SHALL BE ELIGIBLE FOR REAPPOINTMENT AND SHALL SERVE UNTIL
THEIR SUCCESSORS ARE APPOINTED AND QUALIFIED, AND THE TERM OF THE
SUCCESSOR OF ANY INCUMBENT SHALL BE CALCULATED FROM THE EXPIRATION OF
THE TERM OF THAT INCUMBENT. A VACANCY OCCURRING OTHER THAN BY EXPIRATION
OF TERM SHALL BE FILLED IN THE SAME MANNER AS THE ORIGINAL APPOINTMENT,
BUT FOR THE UNEXPIRED TERM ONLY.
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C. A MAJORITY OF THE MEMBERS OF THE COMMISSION SHALL CONSTITUTE A
QUORUM FOR THE PURPOSE OF CONDUCTING THE BUSINESS THEREOF AND A MAJORITY
VOTE OF ALL THE MEMBERS IN OFFICE SHALL BE NECESSARY FOR ACTION.
2. THE COMMISSION SHALL:
A. ACCEPT PETITIONS FILED PURSUANT TO THIS ARTICLE;
B. HOLD HEARINGS AS REQUIRED BY THIS ARTICLE;
C. ACCEPT AND DEPOSIT WITH THE STATE COMPTROLLER ALL SUCH MONIES
REQUIRED TO BE PAID BY THOSE SEEKING TO INCORPORATE A VILLAGE PURSUANT
TO THIS ARTICLE; AND
D. EVALUATE PETITIONS FILED PURSUANT TO THIS ARTICLE AND MAKE DECI-
SIONS WITH REGARD TO WHETHER A VILLAGE INCORPORATION ELECTION SHALL
PROCEED BASED UPON THE COMMISSION'S JUDGMENT OF THE CRITERIA ESTABLISHED
IN SECTIONS 2-200 AND 2-206 OF THIS ARTICLE AND ANY OTHER REQUIREMENTS
ESTABLISHED IN THIS ARTICLE.
3. PRIOR TO ISSUING ITS DECISION WITH REGARD TO WHETHER A VILLAGE
INCORPORATION ELECTION SHALL PROCEED, THE COMMISSION SHALL COMPLETE TWO
STUDIES AFTER RECEIVING A PETITION FOR VILLAGE INCORPORATION, WHICH
SHALL TAKE THE FOLLOWING FORM:
A. THE FIRST STUDY SHALL CONSIST OF A FEASIBILITY ASSESSMENT, WHICH
SHALL EXAMINE THE PROPOSED VILLAGE'S ABILITY TO PROVIDE SERVICES TO ITS
POPULATION IN AN EFFICIENT MANNER. THE FEASIBILITY STUDY SHALL ALSO
EVALUATE THE PROPOSED VILLAGE'S FISCAL CAPACITY TO PROVIDE THESE
SERVICES; AND
B. THE SECOND STUDY SHALL CONSIST OF AN IMPACT ASSESSMENT THAT SHALL
EVALUATE THE FISCAL AND OPERATIONAL EFFECTS OF INCORPORATION ON THE
SURROUNDING TOWN AND THE REST OF THE LOCAL AREA. THESE IMPACTS SHALL
INCLUDE FISCAL, SERVICE, POLITICAL, ENVIRONMENTAL, AND LAND USE IMPACTS.
C. IN ADDITION TO THE STUDIES REQUIRED PURSUANT TO EACH PETITION FOR
VILLAGE INCORPORATION, THE VILLAGE INCORPORATION COMMISSION SHALL ALSO
PRODUCE A REPORT ON ITS RECOMMENDATIONS WITH REGARD TO THE VILLAGE
INCORPORATION PROCESS PURSUANT TO THIS ARTICLE. SUCH REPORT SHALL
PROVIDE THE COMMISSION'S ANALYSIS AND RECOMMENDATIONS ON THE FOLLOWING:
(I) THE NUMBER OF PETITIONS REQUIRED FOR A VILLAGE INCORPORATION PETI-
TION;
(II) THE POPULATION REQUIRED TO INCORPORATE A VILLAGE;
(III) WHETHER THE SIGNATURES OF THE RESIDENTS OF SUCH TERRITORY QUALI-
FIED TO VOTE FOR TOWN OFFICERS IN THE UNINCORPORATED PART OF SUCH TOWN
THAT IS NOT PART OF SUCH TERRITORY WHERE SUCH VILLAGE WOULD BE INCORPO-
RATED NOR PART OF ANOTHER VILLAGE SHOULD BE REQUIRED IN ORDER TO
COMMENCE A PROCEEDING FOR THE INCORPORATION OF SUCH TERRITORY AS A
VILLAGE;
(IV) WHETHER THE RESIDENTS OF SUCH TERRITORY QUALIFIED TO VOTE FOR
TOWN OFFICERS IN THE UNINCORPORATED PART OF SUCH TOWN THAT IS NOT PART
OF SUCH TERRITORY WHERE SUCH VILLAGE WOULD BE INCORPORATED NOR PART OF
ANOTHER VILLAGE WOULD BE ENTITLED TO VOTE IN VILLAGE INCORPORATION
ELECTIONS;
(V) WHETHER POPULATION DENSITY SHOULD BE CONSIDERED IN THE VILLAGE
INCORPORATION PROCESS;
(VI) WHETHER THE REQUIREMENTS OF THIS ARTICLE ARE ADEQUATE TO PROTECT
THE FISCAL, SERVICE, AND TAXATION INTERESTS OF THE RESIDENTS OF THE
PROPOSED VILLAGE AND THOSE RESIDENTS OF THE SURROUNDING AREAS; AND
(VII) ANY OTHER INFORMATION AND RECOMMENDATIONS THE VILLAGE INCORPO-
RATION COMMISSION DEEMS RELEVANT.
D. THE REPORT REQUIRED PURSUANT TO PARAGRAPH C OF THIS SUBDIVISION
SHALL BE PUBLISHED ON THE PUBLIC FACING PORTION OF THE DEPARTMENT OF
STATE'S WEBSITE, AND THE SECRETARY OF STATE OR HIS OR HER DESIGNEE SHALL
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TRANSMIT THE COMMISSION'S FINDINGS AND RECOMMENDATIONS TO THE SPEAKER OF
THE ASSEMBLY, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE GOVERNOR ON
OR BEFORE TWO YEARS FROM THE EFFECTIVE DATE OF THIS SECTION.
4. THE STUDIES REQUIRED PURSUANT TO THIS SECTION SHALL BE PAID BY
FUNDS APPROPRIATED PURSUANT TO SECTION TWO HUNDRED THIRTY-NINE-BB OF THE
GENERAL MUNICIPAL LAW.
5. THE COMMISSION'S DECISION WITH REGARD TO WHETHER A VILLAGE INCORPO-
RATION SHALL PROCEED SHALL BE BY MAJORITY VOTE, AND THE COMMISSION SHALL
POST A NOTICE OF ITS DECISION ON THE PUBLIC-FACING PORTION OF THE
DEPARTMENT OF STATE'S WEBSITE. NO VILLAGE INCORPORATION ELECTION SHALL
PROCEED IN THE EVENT THE COMMISSION RULES ADVERSELY TO SUCH INCORPO-
RATION, EXCEPT PURSUANT TO THE PROVISIONS OF SECTION 2-210 OF THIS ARTI-
CLE.
6. NO VILLAGE INCORPORATION ELECTION SHALL PROCEED UNTIL JANUARY
FIRST, TWO THOUSAND TWENTY-FOUR.
§ 8. Section 239-bb of the general municipal law is amended by adding
a new subdivision 12 to read as follows:
12. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, MONIES
CONSTITUTING THE FUNDS OF THE VILLAGE INCORPORATION COMMISSION ESTAB-
LISHED PURSUANT TO SECTION 2-259 OF THE VILLAGE LAW SHALL BE DEPOSITED
WITH THE STATE COMPTROLLER AND HELD FOR THE PURPOSES OF THE VILLAGE
INCORPORATION COMMISSION ESTABLISHED IN ARTICLE TWO OF THE VILLAGE LAW;
PROVIDED, HOWEVER, THAT SUCH MONIES SHALL BE DERIVED FROM THE APPROPRI-
ATION DEDICATED TO THE MATCHING FUNDS PROGRAM PURSUANT TO SUBDIVISION
EIGHT OF THIS SECTION AND PROVIDED FURTHER, THAT SUCH FUNDING FOR SUCH
ENTITY SHALL NOT BE SUBJECT TO THE REQUIREMENTS OF SUBDIVISION EIGHT OF
THIS SECTION RELATED TO SAVINGS.
§ 9. Subdivision 1 of section 2-200 of the village law is
amended to read as follows:
1. A territory containing a population of at least [five hundred] TWO
THOUSAND persons who are regular inhabitants thereof, as hereinafter
defined, may be incorporated as a village under this chapter provided
such territory does not include a part of a city or village and further
provided the limits of such territory:
a. do not contain more than five square miles; or
b. are coterminous with the entire boundaries of a school, fire, fire
protection, fire alarm, town special or town improvement district; or
c. are coterminous with parts of the boundaries of more than one
school, fire, fire protection, fire alarm, town special or town improve-
ment district, all of which are wholly contained within such limits and
within one town; or
d. are coterminous with the entire boundaries of a town.
§ 10. This act shall take effect on January 1, 2024; provided however,
that section three-a of this act shall take effect immediately and
shall expire and be deemed repealed on the same date and in the same
manner as section three of this act takes effect; and provided further,
that for village incorporation petitions that have collected signatures
prior to the effective date of this act, nothing in this act shall deem
such petition signatures invalid; and provided further, that the
provisions of this act shall apply to all existing village incorporation
petitions that have collected signatures prior to January 1, 2024,
except as hereinafter provided; and provided further, that for village
incorporation petitions that have collected signatures prior to January
1, 2024, the commission review process established pursuant to section
2-259 of the village law, as added by section seven of this act, shall
not apply, and such village incorporation petitions shall continue to be
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subject to the supervisor approval process; and provided further, that
for village incorporation petitions that have collected signatures prior
to January 1, 2024, paragraph h of subdivision 1 of section 2-206 of the
village law as added by section three of this act shall not apply.