A07911 Summary:

BILL NO    A07911 

SAME AS    SAME AS S05777

SPONSOR    Magnarelli (MS)

COSPNSR    Lupardo, McDonald, Ramos, Santabarbara, Fahy, Steck, Skartados,
           Gottfried

MLTSPNSR   Crespo, Englebright, Magee, Simon

Amd SS1608 & 1609, N-PC L

Relates to the acquisition and disposition of property by land banks; provides
for no filing or recording fees for land banks.
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A07911 Actions:

BILL NO    A07911 

05/29/2015 referred to local governments
06/02/2015 reported referred to ways and means
06/15/2015 reported referred to rules
06/15/2015 reported 
06/15/2015 rules report cal.483
06/15/2015 ordered to third reading rules cal.483
06/17/2015 substituted by s5777
           S05777  AMEND=  VALESKY
           06/03/2015 REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
           06/11/2015 COMMITTEE DISCHARGED AND COMMITTED TO RULES
           06/11/2015 ORDERED TO THIRD READING CAL.1513
           06/11/2015 PASSED SENATE
           06/11/2015 DELIVERED TO ASSEMBLY
           06/11/2015 referred to ways and means
           06/17/2015 substituted for a7911
           06/17/2015 ordered to third reading rules cal.483
           06/17/2015 passed assembly
           06/17/2015 returned to senate
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A07911 Votes:

There are no votes for this bill in this legislative session.
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A07911 Memo:

BILL NUMBER:A7911           REVISED MEMO 06/30/2015

TITLE OF BILL:  An act to amend the not-for-profit corporation law, in
relation to the acquisition and disposition of property by land banks

PURPOSE:

This bill exempts New York State Land Banks from recording fees and
2897 of the Public Authorities Law.

SUMMARY OF PROVISIONS:

Section 1: Amends S 1608(a) of the Not-For-Profit Corporation Law to
exempt Land Banks from recording fees.

Section 2: Adds new paragraph (a-1) to S 1609 of the Not-For-Profit
Corporation Law, exempting land banks from the property disposition
requirements of S 2897 of the Public Authorities Law.

Section 3: Establishes the effective date.

JUSTIFICATION:

Land Banks were authorized in 2011 by the State Legislature as a new
tool to help municipalities contend with tax delinquent, abandoned and
blighted properties. As part of their work, Land Banks incur
substantial fees recording documents with County Clerks. This can
amount to hundreds of thousands of dollars a year, and forces them to
divert funds from their primary purpose.

This legislation will exempt Land Banks from these fees and allow them
to devote more funds to their primary mission. Many of these
properties would remain tax delinquent and abandoned if not for land
bank intervention. Any fees lost to counties and the State will be
made up for when these properties are redeveloped and returned to the
tax rolls. Additionally, communities will benefit when these
properties are returned to a useful purpose.

Additionally, S 1609 of the Land Bank Act, entitled "Disposition of
Property", sets forth detailed requirements concerning the disposition
of property by land banks. As local public authorities, land banks are
simultaneously required to comply with S 2897 of the Public
Authorities Law, similarly entitled "Disposal of Public Authority
Property". The public authority disposition provisions overlap,
contradict and impair the disposition provisions in the Land Bank Act
as the public authority provisions are designed to address the sale of
property by a public authority which is not regularly engaged in the
disposition of real property.

Inherent in the primary mission and purpose of land banks is the
regular disposition of property in the ordinary course of its day to
day operations. S 1609 of the Land Bank Act correctly anticipated such
activity and vested a land bank, its board of directors and its
foreclosing governmental units with, among other powers, the authority
to establish the terms and conditions of the consideration received by
a land bank for the transfer of its property, to establish
hierarchical rankings of priorities for the use of property conveyed


by a land bank and to impose specified voting and approval
requirements of its board of directors. The requirement that land
banks comply with both disposition statutes impedes the efficient and
effective return of vacant, abandoned, and tax-delinquent properties
to productive use, and was likely not the intent of the drafters of
the Land Bank Act. An amendment to the Land Bank Act is proposed
stating that S 1609 is intended to supersede S 2897 of the Public
Authorities Law.

LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

Immediately.
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A07911 Text:

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

                                         7911

                              2015-2016 Regular Sessions

                                 I N  A S S E M B L Y

                                     May 29, 2015
                                      ___________

       Introduced  by  M.  of A. MAGNARELLI, LUPARDO, McDONALD -- read once and
         referred to the Committee on Local Governments

       AN ACT to amend the not-for-profit corporation law, in relation  to  the
         acquisition and disposition of property by land banks

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

    1    Section 1. Paragraph (a) of section 1608 of the not-for-profit  corpo-
    2  ration  law,  as added by chapter 257 of the laws of 2011, is amended to
    3  read as follows:
    4    (a) The real property of a land bank and its income and operations are
    5  exempt from all taxation by the state of New York  and  by  any  of  its
    6  political  subdivisions.   NOTWITHSTANDING ANY OTHER GENERAL, SPECIAL OR
    7  LOCAL LAW RELATING TO FEES OF CLERKS, NO CLERK SHALL CHARGE OR COLLECT A
    8  FEE FOR FILING, RECORDING  OR  INDEXING  ANY  PAPER,  DOCUMENT,  MAP  OR
    9  PROCEEDING  FILED,  RECORDED  OR  INDEXED FOR A LAND BANK, OR AN OFFICER
   10  THEREOF ACTING IN AN OFFICIAL CAPACITY, NOR FOR FURNISHING A TRANSCRIPT,
   11  CERTIFICATION OR COPY OF ANY PAPER, DOCUMENT, MAP OR  PROCEEDING  TO  BE
   12  USED FOR LAND BANK PURPOSES.
   13    S 2.  Section 1609 of the not-for-profit corporation law is amended by
   14  adding a new paragraph (a-1) to read as follows:
   15    (A-1) THIS SECTION GOVERNING THE DISPOSITION OF PROPERTY BY LAND BANKS
   16  SHALL  SUPERSEDE SECTION TWENTY-EIGHT HUNDRED NINETY-SEVEN OF THE PUBLIC
   17  AUTHORITIES LAW IN THE GOVERNANCE OF PROPERTY DISPOSITIONS BY LAND BANKS
   18  AND, AS SUCH, NOTWITHSTANDING ANY OTHER GENERAL, SPECIAL OR LOCAL LAW TO
   19  THE CONTRARY, SECTION TWENTY-EIGHT HUNDRED NINETY-SEVEN  OF  THE  PUBLIC
   20  AUTHORITIES LAW SHALL NOT APPLY TO LAND BANKS.
   21    S 3. This act shall take effect immediately.


        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11414-01-5
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