S T A T E O F N E W Y O R K
________________________________________________________________________
8473
I N S E N A T E
February 1, 2024
___________
Introduced by Sen. MARTINEZ -- read twice and ordered printed, and when
printed to be committed to the Committee on Local Government
AN ACT to amend the county law, the tax law and the Suffolk county water
quality restoration act, in relation to the use of moneys from the
water quality restoration fund
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 2 of part TT of chapter 58 of the laws of 2023
constituting the Suffolk county water quality restoration act, is
amended to read as follows:
§ 2. Legislative intent. The county of Suffolk ("county"), with a
population of one million five hundred thousand persons, has in excess
of three hundred eighty thousand existing onsite wastewater disposal
systems, comprised mostly of cesspools and septic systems, with two
hundred nine thousand of these onsite systems in environmentally sensi-
tive areas which could benefit from nitrogen-reducing technologies. The
United States Environmental Protection Agency recognizes Long Island as
having a sole source aquifer system for its drinking water supply.
Suffolk county has an imminent need to preserve this valuable water
resource by reducing the amount of nitrogen discharged into the ground-
water by onsite systems. The full water cycle is impacted by increasing
quantities of nutrients, pathogens, pesticides, volatile organic contam-
inants and saltwater intrusion, as well as a number of emerging threats
such as prescription drugs and sea level rise.
The Suffolk county subwatersheds wastewater plan ("SWP"), certified by
the department of environmental conservation as a Nine Elements
Watershed (9E) plan, has documented the devastating effects of high
levels of nitrogen pollution, not only on the drinking water quality,
but also on coastal ecosystems, dissolved oxygen, water clarity,
eelgrass, wetlands, shellfish, coastal resilience and in triggering
harmful algal blooms. The SWP is a long-term plan to address the need
for wastewater treatment infrastructure throughout the county comprehen-
sively over a period of fifty years. The SWP delineates the source and
concentration of nitrogen loading in one hundred ninety-one subwat-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13725-05-4
S. 8473 2
ersheds throughout the county, and establishes nitrogen reduction goals
for each watershed.
For many areas of the county, installing or connecting sewers is not a
practical or cost-effective method of treating wastewater. For that
reason, the SWP prescribes a hybrid approach that relies on sewering
where feasible, and the replacement of cesspools and septic systems with
innovative/alternative onsite wastewater treatment systems. The consol-
idation of any or all of the twenty-seven county sewer districts, as
well as unsewered areas of the county, into a county-wide wastewater
management district, the establishment of a water quality restoration
fund, and a county board of trustees to monitor progress and the allo-
cation of resources consistent with the goals of the SWP would allow for
the implementation of a much needed integrated long-term wastewater
solution for the county through comprehensive planning and management to
improve water quality.
The purpose of this act is to create a water quality restoration fund
to finance projects for the protection, preservation, and rehabilitation
of groundwater and surface waters as recommended by the SWP. This act
would allow the funding of projects that will mitigate wastewater pollu-
tants utilizing the best available technology consistent with the SWP.
The water quality restoration fund would be financed with a dedicated
and recurring revenue source by the enactment of an additional sales and
compensating use tax at the rate of one-eighth of one percent until
2060. AFTER DEDUCTING ADMINISTRATIVE AND PLANNING COSTS, FIFTY PERCENT
OF THE REVENUE SHALL BE DEDICATED TO FUNDING INDIVIDUAL SEPTIC SYSTEM
PROJECTS AND FIFTY PERCENT OF THE REVENUE SHALL BE DEDICATED TO FUNDING
PROJECTS RELATED TO WASTEWATER TREATMENT FACILITIES. Such tax would be
enacted pursuant to a mandatory referendum.
This act shall also provide Suffolk county with the authority to
create a county-wide wastewater management district through the consol-
idation of existing county sewer districts with currently unsewered
areas of the county. A county-wide wastewater management district will
provide an integrated and efficient approach to managing wastewater
services across the county; allow the county to enhance and expand its
incentive program to property owners to upgrade their wastewater treat-
ment systems; to manage, monitor and enforce nitrogen reduction programs
throughout the county; complete additional sewer extension projects;
improve the economic wellbeing of communities; and provide an opportu-
nity to consolidate and streamline the county's existing sewer district
system and normalize the inequitable rate structure that has long
existed.
In addition, this act will extend the existing one-quarter of one
percent sales tax utilized to finance the county drinking water
protection program until 2060. TWENTY-FIVE PERCENT OF SUCH TAX IS APPOR-
TIONED FOR SEWER TAXPAYER PROTECTION. BEGINNING WITH THE FIRST FISCAL
YEAR AFTER THE ADOPTION OF THE WATER QUALITY RESTORATION FUND, A PORTION
OF THE NET COLLECTIONS OF SUCH TAX APPORTIONED FOR SEWER TAXPAYER
PROTECTION SHALL BE TRANSFERRED TO THE WATER QUALITY RESTORATION FUND,
ESTABLISHED PURSUANT TO SUBDIVISION 11 OF SECTION 256-B OF THE COUNTY
LAW. SUCH REVENUES SHALL BE DEDICATED SOLELY TO FUNDING INDIVIDUAL
SEPTIC SYSTEM PROJECTS AS DEFINED IN SUCH SUBDIVISION. IN THE FIRST
FOUR YEARS, THE PORTION TO BE TRANSFERRED FROM FUNDS APPORTIONED FOR
SEWER TAXPAYER PROTECTION TO THE WATER QUALITY RESTORATION FUND SHALL BE
FIVE PERCENT. IN YEAR FIVE, THE PORTION TO BE TRANSFERRED FROM FUNDS
APPORTIONED FOR SEWER TAX PAYER PROTECTION TO THE WATER QUALITY RESTORA-
TION FUND SHALL BE TWENTY PERCENT. THE AMOUNT TO BE TRANSFERRED SHALL
S. 8473 3
BE THIRTY PERCENT IN YEAR SIX, FORTY PERCENT IN YEAR SEVEN, FIFTY
PERCENT IN YEAR EIGHT, AND SEVENTY PERCENT IN YEARS NINE AND TEN. THE
PORTION TRANSFERRED TO THE FUND SHALL BE FIFTY PERCENT IN ALL YEARS
THEREAFTER.
§ 2. Subdivision 11 of section 256-b of the county law, as added by
section 3 of part TT of chapter 58 of the laws of 2023, is amended to
read as follows:
11. Water quality restoration fund. (a) Notwithstanding any provision
of law to the contrary, the county of Suffolk shall deposit the net
collections from the sales and compensating use tax authorized by
section one thousand two hundred ten-F of the tax law into the Suffolk
county water quality restoration fund established in accordance there-
with, and shall utilize all monies transferred from the fund consistent
with this section. Nothing contained in this section shall be construed
to prevent the financing in whole or in part, pursuant to the local
finance law, of any project authorized pursuant to this section. Monies
from the fund may be utilized to repay any indebtedness or obligations
incurred pursuant to the local finance law consistent with effectuating
the purposes of this section. Where Suffolk county finances a project,
in whole, or in part, pursuant to the local finance law, the resolution
authorizing such indebtedness shall be accompanied by a report from the
county executive demonstrating how said indebtedness will be repaid by
the fund. Said report shall include an estimate of projected revenues of
the fund during the period of indebtedness. The report shall also
provide an accounting of all other indebtedness incurred against the
fund to be repaid for the same period. The county legislature shall
make findings by resolution that there will be sufficient revenue to
repay such indebtedness in its entirety from the fund before authorizing
such indebtedness. Monies in said fund may be appropriated from or
expended in any fiscal year to implement the powers set forth in this
section and to repay any indebtedness or obligations incurred pursuant
to the local finance law for the purposes authorized pursuant to this
section.
(b) (i) Water quality improvement projects shall be eligible for fund-
ing pursuant to this section. For purposes of this section, "water
quality improvement projects" shall mean: (A) the planning, design,
construction, acquisition, enlargement, extension, or alteration of a
county, town or village wastewater treatment facility, including indi-
vidual hookups, AND PROJECTS FOR THE REUSE OF TREATED EFFLUENT FROM SUCH
WASTEWATER TREATMENT FACILITIES, or (B) an individual septic system,
including an alternative wastewater treatment facility or an individual
septic system with active treatment, to treat, neutralize, stabilize,
eliminate or partially eliminate sewage or reduce pollutants, including
permanent or pilot demonstration wastewater treatment projects, or
equipment or furnishings thereof. In the case of individual septic
system projects, the funding of the operation and maintenance of such
projects shall be included in the definition of "water quality improve-
ment projects". Such projects shall have as their purpose the remedi-
ation of existing water quality to meet specific water quality standards
consistent with the SWP. Projects consistent with or listed in the SWP
that are part of a plan adopted by a local government resulting in a net
nitrogen reduction shall be eligible for consideration by the board of
trustees, established in accordance with subparagraph (i) of paragraph
(c) of this subdivision.
(ii) Of the annual collections [of the fund] FROM THE TAX IMPOSED
PURSUANT TO SECTION ONE THOUSAND TWO HUNDRED TEN-F OF THE TAX LAW,
S. 8473 4
administration of the county wastewater management district shall not
exceed ten percent. [Not less than seventy-five] THE COST OF PREPARA-
TION OF AN ANNUAL SWP IMPLEMENTATION ACTION PLAN TO PROTECT, PRESERVE,
AND REHABILITATE GROUNDWATER, SURFACE WATER, AND DRINKING WATER SHALL BE
INCLUDED AS PART OF SUCH ADMINISTRATIVE COSTS. AFTER FIRST DEDUCTING
SUCH ADMINISTRATIVE COSTS, FIFTY percent of the [remaining annual funds
after administration] NET REVENUE FROM SUCH TAX shall be used toward
funding individual septic [systems] SYSTEM projects AND FIFTY PERCENT OF
THE NET REVENUE FROM SUCH TAX SHALL BE USED FOR FUNDING PROJECTS RELATED
TO WASTEWATER TREATMENT FACILITIES. [In addition to water quality
improvement projects, other eligible expenditures from the fund shall
include the preparation of an annual SWP implementation action plan to
protect, preserve, and rehabilitate groundwater, surface water, and
drinking water] ALL REVENUE TRANSFERRED TO THE WATER QUALITY RESTORATION
FUND FROM THE TAX IMPOSED PURSUANT TO SECTION ONE THOUSAND TWO HUNDRED
TEN-A OF THE TAX LAW, AS REQUIRED BY PARAGRAPH (IV) OF SUBDIVISION (D)
OF SUCH SECTION, SHALL BE USED SOLELY TO FUND INDIVIDUAL SEPTIC SYSTEM
PROJECTS.
(iii) Other than for the payment of indebtedness or obligations
incurred as set forth in paragraph (a) of this subdivision, and except
for the preparation of the SWP implementation plan itself, no monies may
be expended until the SWP implementation plan has been prepared and
approved as provided for in this section.
(IV) ANY EXPENDITURE FROM THE FUND FOR A PURPOSE OTHER THAN THAT
EXPRESSLY PERMITTED, HEREIN, SHALL BE PROHIBITED.
(c) (i) Within the local law, ordinance or resolution establishing the
Suffolk county water quality restoration fund, [pursuant to section one
thousand two hundred ten-F of the tax law,] the county shall establish a
board of trustees of twenty-one members to prepare, review and approve
the SWP implementation plan for submission to the county executive and
county legislature and shall specify the powers and duties of the board
of trustees, including the procedures for appointment of a chairperson.
Such approval shall be in addition to all other approvals required by
law. The board of trustees shall consist of: (A) a representative from
the department of environmental conservation; (B) a representative from
the East End supervisors and mayors association; (C) a representative of
the Suffolk town supervisors association; (D) a representative of the
Suffolk County Village Officials Association; (E) a town representative
from the State Central Pine Barrens Joint Planning and Policy Commission
to be designated by the commission; (F) a municipal representative from
the Peconic Estuary Partnership; (G) a municipal representative from the
State South Shore Estuary Reserve; (H) a municipal representative from
the Long Island Sound Estuary; (I) a representative of the Long Island
Federation of Labor; (J) a representative of Building and Construction
Trades Council of Nassau & Suffolk counties; (K) a representative from a
regional environmental organization; (L) the chair of the Suffolk county
planning commission; (M) the county executive or designee; (N) the
presiding officer of the county legislature or designee; (O) the minori-
ty leader of the county legislature or designee; (P) the county depart-
ment of public works commissioner or designee; (Q) the county department
of health services commissioner or designee; (R) a representative from a
regional economic development organization; (S) a representative from
the liquid waste industry; (T) a representative from the Suffolk County
Alliance of Chambers, Inc.; and (U) a representative from the Long
Island Contractors Association.
S. 8473 5
(ii) The powers and duties of the board of trustees shall [oversee]
INCLUDE OVERSEEING the annual audit pursuant to paragraph (e) of this
subdivision, making prudent recommendations for resource allocations for
county-approved alternative wastewater treatment technologies not
contemplated in the Suffolk county subwatersheds wastewater plan and
long-term progress monitoring of the implementation of the Suffolk coun-
ty subwatersheds wastewater plan regarding achievements of nitrogen load
reductions and ecological endpoints.
(d) Annual SWP implementation plan. The board of trustees shall
prepare, review and approve and submit to the county executive the SWP
implementation plan within one year of the effective date of this
section, and in every five years thereafter in a like manner. The board
of trustees shall conduct a public hearing on said plan before its
adoption or subsequent amendment. Said plan shall list every water qual-
ity restoration project which the county plans to undertake pursuant to
the fund and shall state how such project would improve existing water
quality. Funds may only be expended pursuant to this section for
projects which have been included in said plan. Said plan shall be
consistent with state, federal, county, and local government land use
and wastewater management plans. After submission and approval by the
county executive, such plan shall be submitted to the county legisla-
ture. Upon review, the county legislature shall determine, by local
law, whether to approve the proposed plan, if the plan is denied, the
plan shall be remanded to the board of trustees for further study. Such
plan shall not become effective until approved by local law. Projects
may be added or removed from the currently effective SWP implementation
plan in a like manner.
(e) Annual audit. The county shall annually commission an independent
audit of the fund. The audit shall be conducted by an independent certi-
fied public accountant or an independent public accountant. [Said] SUCH
audit shall be performed by a certified public accountant or an inde-
pendent public accountant other than the one that performs the general
audit of the county's finances. Such audit shall be an examination of
the fund and shall determine whether the fund has been administered
consistent with the provisions of this section and all other applicable
provisions of state law. Said audit shall be initiated within sixty days
of the close of the fiscal year of the county and shall be completed
within one hundred twenty days of the close of the fiscal year. A copy
of the audit shall be submitted annually to the state comptroller and
the county comptroller. A copy of the audit shall be made available to
the public within thirty days of its completion. A notice of the
completion of the audit shall be published in the official newspaper of
the county and shall also be posted on the internet website for the
county. The cost of the audit may be a charge to the fund.
(f) Annual report. In addition to any other report required by this
section, the board of trustees, through its chairperson, shall deliver
annually a report to the county legislature. Such report shall be
presented by May fifteenth of each year. The report shall describe in
detail the projects undertaken, the monies expended, and the administra-
tive activities of the water quality fund and district established in
accordance with this section, during the prior year. At the conclusion
of the report, the chairperson of the board of trustees shall be
prepared to answer the questions of the county legislature with respect
to the projects undertaken, the monies expended, and the administrative
activities during the past year. ANY COSTS ASSOCIATED WITH PREPARING THE
ANNUAL REPORT SHALL BE A CHARGE TO THE FUND.
S. 8473 6
§ 3. Subdivision (d) of section 1210-A of the tax law, as amended by
section 4-a of part TT of chapter 58 of the laws of 2023, is amended to
read as follows:
(d) Notwithstanding any other provision of this article to the contra-
ry, the net collections from the tax imposed pursuant to subdivision (a)
of this section for the period beginning December first, nineteen
hundred eighty-eight and ending November thirtieth, two thousand sixty
shall, upon payment to the county of Suffolk, be deposited in a special
fund, to be designated as a drinking water protection reserve fund, to
be created by said county therefor separate and apart from any other
funds and accounts of the county. Moneys in such fund shall be deposited
in one or more of the banks or trust companies designated, in the manner
provided by law, as a depository of the funds of such county. Pending
expenditure from such fund, moneys therein may be invested in the manner
provided in section eleven of the general municipal law. Any interest
earned or capital gain realized on the moneys so deposited or invested
shall accrue to and become part of such fund. Moneys in said fund may be
appropriated from and transferred to or expended in any fiscal year only
for the purposes of making payments pursuant to subdivisions (b) and (c)
of this section for the period beginning December first, nineteen
hundred eighty-eight, to the extent that moneys in said fund are remain-
ing, and if authorized by local law, for the following purposes:
(i) for the purposes of specific environmental protection (acquisition
of: farmland development rights; open space, wetlands, woodlands, pine
barrens and other lands for passive recreational uses; lands for hamlet
greens, hamlet parks, pocket parks, historic parks, cultural parks and
other lands for active/parkland recreational uses; lands necessary for
maintaining and protecting the quality of surface water, groundwater and
coastal resources);
(ii) for a water quality protection and restoration program or
programs and land stewardship initiatives;
(iii) for the purposes of county-wide property tax protection; and
(iv) for the purpose of sewer taxpayer protection (25% OF THE NET
COLLECTIONS FROM THE TAX). BEGINNING WITH THE FIRST FISCAL YEAR AFTER
THE ADOPTION OF THE WATER QUALITY RESTORATION FUND, A PORTION OF THE NET
COLLECTIONS OF SUCH TAX APPORTIONED FOR THIS PURPOSE AS PROVIDED FOR
HEREIN, SHALL BE TRANSFERRED TO THE WATER QUALITY RESTORATION FUND,
ESTABLISHED PURSUANT TO SUBDIVISION ELEVEN OF SECTION TWO HUNDRED
FIFTY-SIX-B OF THE COUNTY LAW. SAID REVENUES SHALL BE DEDICATED SOLELY
TO FUNDING INDIVIDUAL SEPTIC SYSTEM PROJECTS AS DEFINED IN SUCH SUBDIVI-
SION. THE PORTION OF NET COLLECTIONS OF THE TAX TRANSFERRED TO THE WATER
QUALITY RESTORATION FUND EACH YEAR SHALL BE AS FOLLOWS:
YEAR PERCENTAGE
1 5%
2 5%
3 5%
4 5%
5 20%
6 30%
7 40%
8 50%
9 70%
10 70%
S. 8473 7
FOR ALL SUBSEQUENT YEARS, THE PORTION OF NET COLLECTIONS TRANSFERRED TO
THE WATER QUALITY RESTORATION FUND SHALL BE FIFTY PERCENT.
Notwithstanding any special or local law, resolution or charter
provision to the contrary, moneys in said fund which have not been
appropriated from and transferred to or expended in any fiscal year for
the purposes of making payments pursuant to subdivisions (b) and (c) of
this section, may alternatively be appropriated for the purposes of
paying debt service on any new indebtedness incurred after the effective
date of the chapter of the laws of two thousand one that enacted this
paragraph pursuant to the local finance law in order to effectuate the
purposes described in paragraph (i) or (ii) of this subdivision. For the
purpose of allocating moneys in said fund pursuant to local law among
the purposes described in paragraphs (i), (ii), (iii) and (iv) of this
subdivision, moneys applied to the payment of debt service under the
authority of the previous sentence shall be considered by said county to
have been expended for the purposes for which such indebtedness was
incurred.
§ 4. After January 1, 2030, the Suffolk county executive shall prepare
a report to be submitted to the governor and the legislature. Such
report shall make recommendations regarding any modifications to this
act, if any, with regard to the future distribution of revenue for water
quality improvement projects based upon the future demand for funding
for wastewater treatment projects and individual septic system projects.
§ 5. This act shall take effect immediately.
