S05856 Summary:
BILL NO | S05856 |
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SAME AS | SAME AS UNI. A08518 |
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SPONSOR | SKELOS |
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COSPNSR | ALESI, BALL, CARLUCCI, DEFRANCISCO, FARLEY, FLANAGAN, FUSCHILLO, GALLIVAN, GOLDEN, GRIFFO, GRISANTI, HANNON, JOHNSON, KLEIN, LANZA, LARKIN, LAVALLE, LIBOUS, LITTLE, MARCELLINO, MARTINS, MAZIARZ, MCDONALD, NOZZOLIO, RANZENHOFER, RITCHIE, ROBACH, SAVINO, SEWARD, VALESKY, YOUNG, ZELDIN |
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MLTSPNSR | |
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Amd Various Laws, generally | |
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Enacts major components of legislation relating to real property tax levies, rent regulation, exemption from local taxation and mandate relief. |
S05856 Actions:
BILL NO | S05856 | |||||||||||||||||||||||||||||||||||||||||||||||||
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06/24/2011 | REFERRED TO RULES | |||||||||||||||||||||||||||||||||||||||||||||||||
06/24/2011 | ORDERED TO THIRD READING CAL.1544 | |||||||||||||||||||||||||||||||||||||||||||||||||
06/24/2011 | MESSAGE OF NECESSITY | |||||||||||||||||||||||||||||||||||||||||||||||||
06/24/2011 | PASSED SENATE | |||||||||||||||||||||||||||||||||||||||||||||||||
06/24/2011 | DELIVERED TO ASSEMBLY | |||||||||||||||||||||||||||||||||||||||||||||||||
06/24/2011 | referred to ways and means | |||||||||||||||||||||||||||||||||||||||||||||||||
06/24/2011 | substituted for a8518 | |||||||||||||||||||||||||||||||||||||||||||||||||
06/24/2011 | ordered to third reading rules cal.629 | |||||||||||||||||||||||||||||||||||||||||||||||||
06/24/2011 | ruling of chair on point of order | |||||||||||||||||||||||||||||||||||||||||||||||||
06/24/2011 | message of necessity - 3 day message | |||||||||||||||||||||||||||||||||||||||||||||||||
06/24/2011 | passed assembly | |||||||||||||||||||||||||||||||||||||||||||||||||
06/24/2011 | returned to senate | |||||||||||||||||||||||||||||||||||||||||||||||||
06/24/2011 | DELIVERED TO GOVERNOR | |||||||||||||||||||||||||||||||||||||||||||||||||
06/24/2011 | SIGNED CHAP.97 |
S05856 Floor Votes:
Yes
Abbate
Yes
Clark
Yes
Gottfried
No
Lifton
No
Nolan
Yes
Scarborough
No
Abinanti
Yes
Colton
Yes
Graf
Yes
Linares
Yes
Oaks
No
Schimel
Yes
Amedore
ER
Conte
Yes
Gunther
Yes
Lopez PD
Yes
O'Donnell
Yes
Schimminger
ER
Arroyo
Yes
Cook
Yes
Hanna
Yes
Lopez VJ
Yes
Ortiz
Yes
Schroeder
Yes
Aubry
Yes
Corwin
ER
Hawley
Yes
Losquadro
Yes
Palmesano
Yes
Simotas
Yes
Barclay
Yes
Crespo
Yes
Hayes
Yes
Lupardo
No
Paulin
Yes
Smardz
No
Barron
Yes
Crouch
Yes
Heastie
Yes
Magee
No
Peoples Stokes
Yes
Spano
Yes
Benedetto
Yes
Curran
Yes
Hevesi
Yes
Magnarelli
Yes
Perry
ER
Stevenson
Yes
Bing
Yes
Cusick
ER
Hikind
Yes
Maisel
Yes
Pretlow
Yes
Sweeney
Yes
Blankenbush
Yes
Cymbrowitz
ER
Hooper
Yes
Malliotakis
Yes
Ra
Yes
Tedisco
ER
Boyland
Yes
DenDekker
Yes
Hoyt
Yes
Markey
No
Rabbitt
Yes
Tenney
Yes
Boyle
Yes
Dinowitz
Yes
Jacobs
Yes
McDonough
Yes
Raia
Yes
Thiele
Yes
Braunstein
Yes
Duprey
No
Jaffee
Yes
McEneny
Yes
Ramos
Yes
Titone
Yes
Brennan
Yes
Englebright
Yes
Jeffries
Yes
McKevitt
Yes
Reilich
Yes
Titus
Yes
Bronson
Yes
Farrell
Yes
Johns
Yes
McLaughlin
Yes
Reilly
Yes
Tobacco
Yes
Brook Krasny
Yes
Finch
Yes
Jordan
Yes
Meng
Yes
Rivera J
Yes
Weinstein
No
Burling
Yes
Fitzpatrick
Yes
Katz
No
Miller D
Yes
Rivera N
No
Weisenberg
Yes
Butler
No
Friend
Yes
Kavanagh
Yes
Miller JM
Yes
Rivera PM
ER
Weprin
No
Cahill
Yes
Gabryszak
Yes
Kellner
Yes
Miller MG
Yes
Roberts
Yes
Wright
Yes
Calhoun
Yes
Galef
ER
Kirwan
Yes
Millman
ER
Robinson
Yes
Zebrowski
Yes
Camara
Yes
Gantt
Yes
Kolb
Yes
Molinaro
Yes
Rodriguez
ER
Mr. Speaker
Yes
Canestrari
Yes
Gibson
Yes
Lancman
Yes
Montesano
Yes
Rosenthal
Yes
Castelli
Yes
Giglio
No
Latimer
Yes
Morelle
Yes
Russell
Yes
Castro
Yes
Glick
Yes
Lavine
Yes
Moya
Yes
Saladino
Yes
Ceretto
Yes
Goodell
Yes
Lentol
Yes
Murray
Yes
Sayward
‡ Indicates voting via videoconference
S05856 Text:
Go to top STATE OF NEW YORK ________________________________________________________________________ S. 5856 A. 8518 2011-2012 Regular Sessions SENATE - ASSEMBLY June 24, 2011 ___________ IN SENATE -- Introduced by Sens. SKELOS, ALESI, BALL, DeFRANCISCO, FARLEY, FLANAGAN, FUSCHILLO, GALLIVAN, GOLDEN, GRIFFO, GRISANTI, HANNON, JOHNSON, LANZA, LARKIN, LAVALLE, LIBOUS, LITTLE, MARCELLINO, MARTINS, MAZIARZ, McDONALD, NOZZOLIO, RANZENHOFER, RITCHIE, ROBACH, SEWARD, YOUNG, ZELDIN -- (at request of the Governor) -- read twice and ordered printed, and when printed to be committed to the Committee on Rules IN ASSEMBLY -- Introduced by M. of A. V. LOPEZ, SILVER, FARRELL -- (at request of the Governor) -- read once and referred to the Committee on Ways and Means AN ACT to amend the general municipal law and the education law, in relation to establishing limits upon school district and local govern- ment tax levies; and providing for the repeal of such provisions upon expiration thereof (Part A); to amend chapter 576 of the laws of 1974 amending the emergency housing rent control law relating to the control of and stabilization of rent in certain cases, the emergency housing rent control law, chapter 329 of the laws of 1963 amending the emergency housing rent control law relating to recontrol of rents in Albany, chapter 555 of the laws of 1982 amending the general business law and the administrative code of the city of New York relating to conversion of residential property to cooperative or condominium ownership in the city of New York, chapter 402 of the laws of 1983 amending the general business law relating to conversion of rental residential property to cooperative or condominium ownership in certain municipalities in the counties of Nassau, Westchester and Rockland and the rent regulation reform act of 1997, in relation to extending the effectiveness thereof; to amend the administrative code of the city of New York, the emergency tenant protection act of nine- teen seventy-four and the emergency housing rent control law, in relation to limiting rent increases after vacancy of a housing accom- modation and the adjustment of maximum allowable rent based on apart- ment improvements; to amend the emergency tenant protection act of nineteen seventy-four, the emergency housing rent control law, the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD12081-01-1S. 5856 2 A. 8518 administrative code of the city of New York and the tax law, in relation to deregulation thresholds; to amend the real property tax law, in relation to tax exemption for new multiple dwellings and exemption of certain new or substantially rehabilitated multiple dwellings from local taxation and to amend the tax law, in relation to verification of income (Part B); to amend the state finance law, in relation to providing certain centralized services to political subdi- visions and extending the authority of the commissioner of general services to aggregate purchases of energy for state agencies and poli- tical subdivisions; to amend the general municipal law, in relation to purchasing information technology and telecommunications; to amend the county law, in relation to contracts for services; to amend the gener- al municipal law, in relation to certain federal contracts; to amend the municipal home rule law, in relation to filing and publication of local laws; and providing for the repeal of certain provisions upon the expiration thereof (Subpart A); to amend the general municipal law and the highway law, in relation to mutual aid (Subpart B); to amend the general municipal law, in relation to apportioning the expenses of police department members in attending police training schools; to amend the criminal procedure law, in relation to the prosecution of the offense of identity theft; to amend the family court act, in relation to inter-county probation; to amend the mental hygiene law, in relation to payment of costs for prosecution of inmate-patients; and to repeal section 207-m of the general municipal law relating to salary increases for heads of police departments of municipalities, districts or authorities (Subpart C); to amend the general municipal law, in relation to filing requirements for municipalities regarding urban renewal plans and creation of urban renewal agencies and author- ities (Subpart D); to amend the social services law, in relation to the use of debit or credit cards for child care assistance payments; and to amend the social services law, in relation to the length of licenses to board children, training of child protective service case- workers, services plans, funding for children and family services, district-wide child welfare services plans, and non-residential services for victims of domestic violence (Subpart E); to amend the education law, in relation to census reporting; to amend the education law, in relation to transportation of children receiving special education services; to amend the education law, in relation to funding of certain capital projects and auditing of claims; to amend the education law, in relation to establishing a shared superintendent program; and to amend the education law, in relation to cost-sharing between districts; and to amend the general municipal law, in relation to accounts of officers to be examined; and providing for the repeal of certain provisions upon expiration thereof (Subpart F); to amend the mental hygiene law and the social services law, in relation to the implementation of medical support provisions (Subpart G); and to amend the state administrative procedure act, in relation to alternate meth- ods for implementing regulatory mandates; and to amend the executive law, in relation to creation of the mandate relief council and provid- ing for the expiration of such provisions (Subpart H) (Part C) The People of the State of New York, represented in Senate and Assem- bly, do enact as follows:S. 5856 3 A. 8518 1 Section 1. This act enacts into law major components of legislation 2 relating to real property tax levies, rent regulation, exemption from 3 local taxation and mandate relief. Each component is wholly contained 4 within a Part identified as Parts A through C. The effective date for 5 each particular provision contained within such Part is set forth in the 6 last section of such Part. Any provision in any section contained within 7 a Part, including the effective date of the Part, which makes a refer- 8 ence to a section "of this act", when used in connection with that 9 particular component, shall be deemed to mean and refer to the corre- 10 sponding section of the Part in which it is found. Section three of this 11 act sets forth the general effective date of this act. 12 PART A 13 Section 1. The general municipal law is amended by adding a new 14 section 3-c to read as follows: 15 § 3-c. Limit upon real property tax levies by local governments. 1. 16 Unless otherwise provided by law, the amount of real property taxes that 17 may be levied by or on behalf of any local government, other than the 18 city of New York and the counties contained therein, shall not exceed 19 the tax levy limit established pursuant to this section. 20 2. When used in this section: 21 (a) "Allowable levy growth factor" shall be the lesser of: (i) one and 22 two one-hundredths; or (ii) the sum of one plus the inflation factor; 23 provided, however, that in no case shall the levy growth factor be less 24 than one. 25 (b) "Available carryover" means the amount by which the tax levy for 26 the prior fiscal year was below the tax levy limit for such fiscal year, 27 if any, but no more than an amount that equals one and one-half percent 28 of the tax levy limit for such fiscal year. 29 (c) "Coming fiscal year" means the fiscal year of the local government 30 for which a tax levy limit shall be determined pursuant to this section. 31 (d) "Inflation factor" means the quotient of: (i) the average of the 32 national consumer price indexes determined by the United States depart- 33 ment of labor for the twelve-month period ending six months prior to the 34 start of the coming fiscal year minus the average of the national 35 consumer price indexes determined by the United States department of 36 labor for the twelve-month period ending six months prior to the start 37 of the prior fiscal year, divided by: (ii) the average of the national 38 consumer price indexes determined by the United States department of 39 labor for the twelve-month period ending six months prior to the start 40 of the prior fiscal year, with the result expressed as a decimal to four 41 places. 42 (e) "Local government" means a county, city, town, village, fire 43 district, or special district including but not limited to a district 44 created pursuant to article twelve or twelve-A, or governed by article 45 thirteen of the town law, or created pursuant to article five-A, five-B 46 or five-D of the county law, chapter five hundred sixteen of the laws of 47 nineteen hundred twenty-eight, or chapter two hundred seventy-three of 48 the laws of nineteen hundred thirty-nine, and shall include town 49 improvements provided pursuant to articles three-A and twelve-C of the 50 town law but shall not include the city of New York or the counties 51 contained therein. 52 (f) "Prior fiscal year" means the fiscal year of the local government 53 immediately preceding the coming fiscal year.S. 5856 4 A. 8518 1 (g) "Tax levy limit" means the amount of taxes authorized to be levied 2 by or on behalf of a local government pursuant to this section, 3 provided, however, that the tax levy limit shall not include the follow- 4 ing: 5 (i) a tax levy necessary for expenditures resulting from court orders 6 or judgments against the local government arising out of tort actions 7 for any amount that exceeds five percent of the total tax levied in the 8 prior fiscal year; 9 (ii) in years in which the system average actuarial contribution rate 10 of the New York state and local employees' retirement system, as defined 11 by paragraph ten of subdivision a of section nineteen-a of the retire- 12 ment and social security law, increases by more than two percentage 13 points from the previous year, a tax levy necessary for expenditures for 14 the coming fiscal year for local government employer contributions to 15 the New York state and local employees' retirement system caused by 16 growth in the system average actuarial contribution rate minus two 17 percentage points; 18 (iii) in years in which the system average actuarial contribution rate 19 of the New York state and local police and fire retirement system, as 20 defined by paragraph eleven of subdivision a of section three hundred 21 nineteen-a of the retirement and social security law, increases by more 22 than two percentage points from the previous year, a tax levy necessary 23 for expenditures for the coming fiscal year for local government employ- 24 er contributions to the New York state and local police and fire retire- 25 ment system caused by growth in the system average actuarial contrib- 26 ution rate minus two percentage points; 27 (iv) in years in which the normal contribution rate of the New York 28 state teachers' retirement system, as defined by paragraph a of subdivi- 29 sion two of section five hundred seventeen of the education law, 30 increases by more than two percentage points from the previous year, a 31 tax levy necessary for expenditures for the coming fiscal year for local 32 government employer contributions to the New York state teachers' 33 retirement system caused by growth in the normal contribution rate minus 34 two percentage points. 35 (h) "Tax" or "taxes" shall include (i) a charge imposed upon real 36 property by or on behalf of a county, city, town, village or school 37 district for municipal or school district purposes, and (ii) special ad 38 valorem levies and special assessments as defined in subdivisions four- 39 teen and fifteen of section one hundred two of the real property tax 40 law. 41 3. (a) Subject to the provisions of subdivision five of this section, 42 beginning with the fiscal year that begins in two thousand twelve, no 43 local government shall adopt a budget that requires a tax levy that is 44 greater than the tax levy limit for the coming fiscal year. Provided 45 however the tax levy limit shall not prohibit a levy necessary to 46 support the expenditures pursuant to subparagraphs (i) through (iv) of 47 paragraph (g) of subdivision two of this section. 48 (b)(i) The commissioner of taxation and finance shall calculate a 49 quantity change factor for each local government for the coming fiscal 50 year based upon the physical or quantity change, as defined by section 51 twelve hundred twenty of the real property tax law, reported to the 52 commissioner of taxation and finance by the assessor or assessors pursu- 53 ant to section five hundred seventy-five of the real property tax law. 54 The quantity change factor shall show the percentage by which the full 55 value of the taxable real property in the local government has changed 56 due to physical or quantity change between the second final assessmentS. 5856 5 A. 8518 1 roll or rolls preceding the final assessment roll or rolls upon which 2 taxes are to be levied, and the final assessment roll or rolls imme- 3 diately preceding the final assessment roll or rolls upon which taxes 4 are to be levied. 5 (ii) After determining the quantity change factor for the local 6 government, the commissioner of taxation and finance shall proceed as 7 follows: 8 (A) If the quantity change factor is negative, the commissioner of 9 taxation and finance shall not determine a tax base growth factor for 10 the local government. 11 (B) If the quantity change factor is positive, the commissioner of 12 taxation and finance shall determine a tax base growth factor for the 13 local government which is equal to one plus the quantity change factor. 14 (iii) The commissioner of taxation and finance shall notify the state 15 comptroller and each local government of the applicable tax base growth 16 factors, if any, as soon thereafter as such factors are determined. 17 (c) Each local government shall calculate the tax levy limit applica- 18 ble to the coming fiscal year which shall be determined as follows: 19 (i) Ascertain the total amount of taxes levied for the prior fiscal 20 year. 21 (ii) Multiply the result by the tax base growth factor, calculated 22 pursuant to paragraph (b) of this subdivision, if any. 23 (iii) Add any payments in lieu of taxes that were receivable in the 24 prior fiscal year. 25 (iv) Subtract the tax levy necessary to support expenditures pursuant 26 to subparagraph (i) of paragraph (g) of subdivision two of this section 27 for the prior fiscal year, if any. 28 (v) Multiply the result by the allowable levy growth factor. 29 (vi) Subtract any payments in lieu of taxes receivable in the coming 30 fiscal year. 31 (vii) Add the available carryover, if any. 32 (d) Whenever the responsibility and associated cost of a local govern- 33 ment function is transferred to another local government, the state 34 comptroller shall determine the costs and savings on the affected local 35 governments attributable to such transfer for the first fiscal year 36 following the transfer, and notify such local governments of such deter- 37 mination and that they shall adjust their tax levy limits accordingly. 38 4. (a) When two or more local governments consolidate, the state comp- 39 troller shall determine the tax levy limit for the consolidated local 40 government for the first fiscal year following the consolidation based 41 on the respective tax levy limits of the component local governments 42 that formed such consolidated local government from the last fiscal year 43 prior to the consolidation. 44 (b) When a local government dissolves, the state comptroller shall 45 determine the tax levy limit for the local government that assumes the 46 debts, liabilities, and obligations of such dissolved local government 47 for the first fiscal year following the dissolution based on the respec- 48 tive tax levy limits of such dissolved local government and such local 49 government that assumes the debts, liabilities, and obligations of such 50 dissolved local government from the last fiscal year prior to the 51 dissolution. 52 (c) The tax levy limit established by this section shall not apply to 53 the first fiscal year after a local government is newly established or 54 constituted through a process other than consolidation or dissolution. 55 5. A local government may adopt a budget that requires a tax levy that 56 is greater than the tax levy limit for the coming fiscal year, notS. 5856 6 A. 8518 1 including any levy necessary to support the expenditures pursuant to 2 subparagraphs (i) through (iv) of paragraph g of subdivision two of this 3 section, only if the governing body of such local government first 4 enacts, by a vote of sixty percent of the total voting power of such 5 body, a local law to override such limit for such coming fiscal year 6 only, or in the case of a district or fire district, a resolution, 7 approved by a vote of sixty percent of the total voting power of such 8 body, to override such limit for such coming fiscal year only. 9 6. In the event a local government's actual tax levy for a given 10 fiscal year exceeds the tax levy limit as established pursuant to this 11 section due to clerical or technical errors, the local government shall 12 place the excess amount of the levy in reserve in accordance with such 13 requirements as the state comptroller may prescribe, and shall use such 14 funds and any interest earned thereon to offset the tax levy for the 15 ensuing fiscal year. If, upon examination pursuant to sections thirty- 16 three and thirty-four of this chapter, the state comptroller finds that 17 a local government levied taxes in excess of the applicable tax levy 18 limit, the local government, as soon as practicable, shall place an 19 amount equal to the excess amount of the levy in such reserve in accord- 20 ance with this subdivision. 21 7. All local governments subject to the provisions of this section 22 shall, prior to adopting a budget for the coming fiscal year, submit to 23 the state comptroller, in a form and manner as he or she may prescribe, 24 any information necessary for calculating the tax levy limit for the 25 coming fiscal year. 26 § 2. The education law is amended by adding a new section 2023-a to 27 read as follows: 28 § 2023-a. Limitations upon school district tax levies. 1. Generally. 29 Unless otherwise provided by law, the amount of taxes that may be levied 30 by or on behalf of any school district, other than a city school 31 district of a city with one hundred twenty-five thousand inhabitants or 32 more, shall not exceed the tax levy limit established pursuant to this 33 section, not including any tax levy necessary to support the expendi- 34 tures pursuant to subparagraphs (i) through (iv) of paragraph i of 35 subdivision two of this section. 36 2. Definitions. As used in this section: 37 a. "Allowable levy growth factor" shall be the lesser of: (i) one and 38 two one-hundredths; or (ii) the sum of one plus the inflation factor; 39 provided, however, that in no case shall the levy growth factor be less 40 than one. 41 b. "Available carryover" means the amount by which the tax levy for 42 the prior school year was below the applicable tax levy limit for such 43 school year, if any, but no more than an amount that equals one and 44 one-half percent of the tax levy limit for such school year. 45 c. "Capital local expenditures" means the taxes associated with budg- 46 eted expenditures resulting from the financing, refinancing, acquisi- 47 tion, design, construction, reconstruction, rehabilitation, improvement, 48 furnishing and equipping of, or otherwise providing for school district 49 capital facilities or school district capital equipment, including debt 50 service and lease expenditures, and transportation capital debt service, 51 subject to the approval of the qualified voters where required by law. 52 d. "Capital tax levy" means the tax levy necessary to support capital 53 local expenditures, if any. 54 e. "Coming school year" means the school year for which tax levy 55 limits are being determined pursuant to this section.S. 5856 7 A. 8518 1 f. "Inflation factor" means the quotient of: (i) the average of the 2 national consumer price indexes determined by the United States depart- 3 ment of labor for the twelve-month period preceding January first of the 4 current year minus the average of the national consumer price indexes 5 determined by the United States department of labor for the twelve-month 6 period preceding January first of the prior year, divided by: (ii) the 7 average of the national consumer price indexes determined by the United 8 States department of labor for the twelve-month period preceding January 9 first of the prior year, with the result expressed as a decimal to four 10 places. 11 g. "Prior school year" means the school year immediately preceding the 12 coming school year. 13 h. "School district" means a common school district, union free school 14 district, central school district, central high school district or a 15 city school district in a city with less than one hundred twenty-five 16 thousand inhabitants. 17 i. "Tax levy limit" means the amount of taxes a school district is 18 authorized to levy pursuant to this section, provided, however, that the 19 tax levy limit shall not include the following: 20 (i) a tax levy necessary for expenditures resulting from court orders 21 or judgments against the school district arising out of tort actions for 22 any amount that exceeds five percent of the total tax levied in the 23 prior school year; 24 (ii) in years in which the system average actuarial contribution rate 25 of the New York state and local employees' retirement system, as defined 26 by paragraph ten of subdivision a of section nineteen-a of the retire- 27 ment and social security law, increases by more than two percentage 28 points from the previous year, a tax levy necessary for expenditures for 29 the coming fiscal year for school district employer contributions to the 30 New York state and local employees' retirement system caused by growth 31 in the system average actuarial contribution rate minus two percentage 32 points; 33 (iii) in years in which the normal contribution rate of the New York 34 state teachers' retirement system, as defined by paragraph a of subdivi- 35 sion two of section five hundred seventeen of this chapter, increases by 36 more than two percentage points from the previous year, a tax levy 37 necessary for expenditures for the coming fiscal year for school 38 district employer contributions to the New York state teachers' retire- 39 ment system caused by growth in the normal contribution rate minus two 40 percentage points; and 41 (iv) a capital tax levy. 42 2-a. Tax base growth factor. a. No later than February fifteenth of 43 each year, the commissioner of taxation and finance shall identify those 44 school districts for which tax base growth factors must be determined 45 for the coming school year, and shall notify the commissioner of the tax 46 base growth factors so determined, if any. 47 b. The commissioner of taxation and finance shall calculate a quantity 48 change factor for the coming school year for each school district based 49 upon the physical or quantity change, as defined by section twelve 50 hundred twenty of the real property tax law, reported to the commission- 51 er of taxation and finance by the assessor or assessors pursuant to 52 section five hundred seventy-five of the real property tax law. The 53 quantity change factor shall show the percentage by which the full value 54 of the taxable real property in the school district has changed due to 55 physical or quantity change between the second final assessment roll or 56 rolls preceding the final assessment roll or rolls upon which taxes areS. 5856 8 A. 8518 1 to be levied, and the final assessment roll or rolls immediately preced- 2 ing the final assessment roll or rolls upon which taxes are to be 3 levied. 4 c. After determining the quantity change factor for a school district, 5 the commissioner of taxation and finance shall proceed as follows: 6 (i) If the quantity change factor is negative, the commissioner of 7 taxation and finance shall not determine a tax base growth factor for 8 the school district. 9 (ii) If the quantity change factor is positive, the commissioner of 10 taxation and finance shall determine a tax base growth factor for the 11 school district which is equal to one plus the quantity change factor. 12 3. Computation of tax levy limits. a. Each school district shall 13 calculate the tax levy limit for each school year which shall be deter- 14 mined as follows: 15 (1) Ascertain the total amount of taxes levied for the prior school 16 year. 17 (2) Multiply the result by the tax base growth factor, if any. 18 (3) Add any payments in lieu of taxes that were receivable in the 19 prior school year. 20 (4) Subtract the tax levy necessary to support the expenditures pursu- 21 ant to subparagraphs (i) and (iv) of paragraph i of subdivision two of 22 this section for the prior school year, if any. 23 (5) Multiply the result by the allowable levy growth factor. 24 (6) Subtract any payments in lieu of taxes receivable in the coming 25 fiscal year. 26 (7) Add the available carryover, if any. 27 b. On or before March first of each year, any school district subject 28 to the provisions of this section shall submit to the state comptroller, 29 the commissioner, and the commissioner of taxation and finance, in a 30 form and manner prescribed by the state comptroller, any information 31 necessary for the calculation of the tax levy limit; and the school 32 district's determination of the tax levy limit pursuant to this section 33 shall be subject to review by the commissioner and the commissioner of 34 taxation and finance. 35 4. Reorganized school districts. When two or more school districts 36 reorganize, the commissioner shall determine the tax levy limit for the 37 reorganized school district for the first school year following the 38 reorganization based on the respective tax levy limits of the school 39 districts that formed the reorganized district from the last school year 40 in which they were separate districts, provided that in the event of 41 formation of a new central high school district, the tax levy limits for 42 the new central high school district and its component school districts 43 shall be determined in accordance with a methodology prescribed by the 44 commissioner. 45 5. Erroneous levies. In the event a school district's actual tax levy 46 for a given school year exceeds the maximum allowable levy as estab- 47 lished pursuant to this section due to clerical or technical errors, the 48 school district shall place the excess amount of the levy in reserve in 49 accordance with such requirements as the state comptroller may 50 prescribe, and shall use such funds and any interest earned thereon to 51 offset the tax levy for the ensuing school year. 52 6. (a) Notwithstanding any other provision of law to the contrary, in 53 the event the trustee, trustees or board of education of a school 54 district that is subject to the provisions of this section proposes a 55 budget that will require a tax levy that exceeds the tax levy limit for 56 the corresponding school year, not including any levy necessary toS. 5856 9 A. 8518 1 support the expenditures pursuant to subparagraphs (i) through (iv) of 2 paragraph i of subdivision two of this section, then such budget shall 3 be approved if sixty percent of the votes cast thereon are in the affir- 4 mative. 5 (b) Where the trustee, trustees or board of education proposes a budg- 6 et subject to the requirements of paragraph (a) of this subdivision, the 7 ballot for such budget shall include the following statement in substan- 8 tially the same form: "Adoption of this budget requires a tax levy 9 increase of which exceeds the statutory tax levy increase limit 10 of for this school fiscal year and therefore exceeds the state tax 11 cap and must be approved by sixty percent of the qualified voters pres- 12 ent and voting." 13 7. In the event that the original proposed budget is not approved by 14 the voters, the sole trustee, trustees or board of education may adopt a 15 final budget pursuant to subdivision eight of this section or resubmit 16 to the voters the original or a revised budget at a special district 17 meeting in accordance with subdivision three of section two thousand 18 seven of this part. Upon one defeat of such resubmitted budget, the 19 sole trustee, trustees or board of education shall adopt a final budget 20 pursuant to subdivision eight of this section. 21 8. Notwithstanding any other provision of law to the contrary, if the 22 qualified voters fail to approve the proposed school district budget 23 upon resubmission or upon a determination not to resubmit for a second 24 vote pursuant to subdivision seven of this section, the sole trustee, 25 trustees or board of education shall levy a tax no greater than the tax 26 that was levied for the prior school year. 27 9. Nothing in this section shall preclude the trustee, trustees, or 28 board of education of a school district, in their discretion, from 29 submitting additional items of expenditures to the voters for approval 30 as separate propositions or the voters from submitting propositions 31 pursuant to sections two thousand eight and two thousand thirty-five of 32 this part; provided however, except in the case of a proposition submit- 33 ted for any expenditure contained within subparagraphs (i) through (iv) 34 of paragraph i of subdivision two of this section, if any proposition, 35 or propositions collectively that are subject to a vote on the same 36 date, would require an expenditure of money that would require a tax 37 levy and would result in the tax levy limit being exceeded for the 38 corresponding school year then such proposition shall be approved if 39 sixty percent of the votes cast thereon are in the affirmative. 40 § 3. Section 2023 of the education law, as amended by section 24 of 41 part A of chapter 436 of the laws of 1997, subdivision 1 as amended by 42 chapter 682 of the laws of 2002, subparagraphs (v) and (vi) of paragraph 43 b of subdivision 4 as separately amended by section 1 of part D-2 of 44 chapter 57 of the laws of 2007 and chapter 422 of the laws of 2007, 45 subparagraph (vii) of paragraph b of subdivision 4 as added by section 1 46 of part D-2 of chapter 57 of the laws of 2007, subparagraph (vii) of 47 paragraph b of subdivision 4 as added by chapter 422 of the laws of 2007 48 and paragraph b-1 of subdivision 4 as amended by section 5 of part B of 49 chapter 57 of the laws of 2008, is amended to read as follows: 50 § 2023. Levy of tax for certain purposes without vote; contingency 51 budget. 1. If the qualified voters shall neglect or refuse to vote the 52 sum estimated necessary for teachers' salaries, after applying thereto 53 the public school moneys, and other moneys received or to be received 54 for that purpose, or if they shall neglect or refuse to vote the sum 55 estimated necessary for ordinary contingent expenses, including the 56 purchase of library books and other instructional materials associatedS. 5856 10 A. 8518 1 with a library and expenses incurred for interschool athletics, field 2 trips and other extracurricular activities and the expenses for cafete- 3 ria or restaurant services, the sole trustee, board of trustees, or 4 board of education shall adopt a contingency budget including such 5 expenses and shall levy a tax, subject to the restrictions as set forth 6 in subdivision four of this section and subdivision eight of section two 7 thousand twenty-three-a of this part, for the same, in like manner as if 8 the same had been voted by the qualified voters, subject to the limita- 9 tions contained in subdivisions three and four of this section. 10 2. Notwithstanding the defeat of a school budget, school districts 11 shall continue to transport students to and from the regular school 12 program in accordance with the mileage limitations previously adopted by 13 the qualified voters of the school district. Such mileage limits shall 14 change only when amended by a special proposition passed by a majority 15 of the qualified voters of the school district. In cases where the 16 school budget is defeated by such qualified voters of the school 17 district, appropriations for transportation costs for purposes other 18 than for transportation to and from the regular school program, and 19 transportation that would constitute an ordinary contingent expense 20 pursuant to subdivision one of this section, shall be authorized in the 21 budget only after approval by the qualified voters of the district. 22 3. The administrative component of a contingency budget shall not 23 comprise a greater percentage of the contingency budget exclusive of the 24 capital component than the lesser of (1) the percentage the administra- 25 tive component had comprised in the prior year budget exclusive of the 26 capital component; or (2) the percentage the administrative component 27 had comprised in the last proposed defeated budget exclusive of the 28 capital component. 29 4. a. The contingency budget shall not result in a [percentage30increase in total spending over the district's total spending under the31school district budget for the prior school year that exceeds the lesser32of: (i) the result obtained when one hundred twenty percent is multi-33plied by the percentage increase in the consumer price index, with the34result rounded to two decimal places; or (ii) four percent.35b. The following types of expenditures shall be disregarded in deter-36mining total spending:37(i) expenditures resulting from a tax certiorari proceeding;38(ii) expenditures resulting from a court order or judgment against the39school district;40(iii) emergency expenditures that are certified by the commissioner as41necessary as a result of damage to, or destruction of, a school building42or school equipment;43(iv) capital expenditures resulting from the construction, acquisi-44tion, reconstruction, rehabilitation or improvement of school facili-45ties, including debt service and lease expenditures, subject to the46approval of the qualified voters where required by law;47(v) expenditures in the contingency budget attributable to projected48increases in public school enrollment, which, for the purpose of this49subdivision, may include increases attributable to the enrollment of50students attending a pre-kindergarten program established in accordance51with section thirty-six hundred two-e of this chapter, to be computed52based upon an increase in enrollment from the year prior to the base53year for which the budget is being adopted to the base year for which54the budget is being adopted, provided that where the trustees or board55of education have documented evidence that a further increase in enroll-56ment will occur during the school year for which the contingency budgetS. 5856 11 A. 8518 1is prepared because of new construction, inception of a pre-kindergarten2program, growth or similar factors, the expenditures attributable to3such additional enrollment may also be disregarded;4(vi) non-recurring expenditures in the prior year's school district5budget; and6(vii) expenditures for payments to charter schools pursuant to section7twenty-eight hundred fifty-six of this chapter.8(vii) expenditures for self-supporting programs. For purposes of this9subparagraph, "self-supporting programs" shall mean any programs that10are entirely funded by private funds that cover all the costs of the11program.12b-1. Notwithstanding any other provision of this subdivision to the13contrary, in the event a state grant in aid provided to the district in14the prior year is eliminated and incorporated into a non-categorical15general state aid in the current school year, the amount of such grant16may be included in the computation of total spending for the prior17school year, provided that the commissioner has verified that the grant18in aid has been incorporated into such non-categorical general state19aid] tax levy greater than the tax levied for the prior school year. 20 [c.] b. The resolution of the trustee, board of trustees, or board of 21 education adopting a contingency budget shall incorporate by reference a 22 statement specifying the projected percentage increase or decrease in 23 total spending for the school year, and explaining the reasons for 24 disregarding any portion of an increase in spending in formulating the 25 contingency budget. 26 [d.] c. Notwithstanding any other provision of law to the contrary, 27 the trustees or board of education shall not be authorized to amend or 28 revise a final contingency budget where such amendment or revision would 29 result in total spending in excess of the spending limitation in para- 30 graph (a) of this subdivision; provided that the trustees or board of 31 education shall be authorized to add appropriations for[:32(i) the categories of expenditures excluded from the spending limita-33tions set forth in paragraph (b) of this subdivision, subject to34approval of the qualified voters where required by law;35(ii) expenditures resulting from an actual increase in enrollment over36the projected enrollment used to develop the contingency budget,37provided that where such actual enrollment is less than such projected38enrollment, it shall be the duty of the trustees or board of education39to use such excess funds to reduce taxes; and40(iii)] the expenditure of gifts, grants in aid for specific purposes 41 or for general use or insurance proceeds authorized pursuant to subdivi- 42 sion two of [sudivision] section seventeen hundred eighteen of this 43 chapter in addition to that which has been previously budgeted. 44 [e. For the purposes of this subdivision:45(i) "Base school year" shall mean the school year immediately preced-46ing the school year for which the contingency budget is prepared.47(ii) "Consumer price index" shall mean the percentage that represents48the average of the national consumer price indexes determined by the49United States department of labor, for the twelve month period preceding50January first of the current year.51(iii) "Current year" shall mean the calendar year in which the school52district budget is submitted for a vote of the qualified voters.53(iv) "Resident public school district enrollment shall mean the resi-54dent public school enrollment of the school district as defined in para-55graph n of subdivision one of section thirty-six hundred two of this56chapter.S. 5856 12 A. 8518 1(v) "Total spending" shall mean the total amount appropriated under2the school district budget for the school year.] 3 § 4. Paragraph a of subdivision 7 of section 1608 of the education 4 law, as amended by chapter 238 of the laws of 2007, is amended to read 5 as follows: 6 a. Each year, commencing with the proposed budget for the two thou- 7 sand--two thousand one school year, the trustee or board of trustees 8 shall prepare a property tax report card, pursuant to regulations of the 9 commissioner, and shall make it publicly available by transmitting it to 10 local newspapers of general circulation, appending it to copies of the 11 proposed budget made publicly available as required by law, making it 12 available for distribution at the annual meeting, and otherwise dissem- 13 inating it as required by the commissioner. Such report card shall 14 include: (i) the amount of total spending and total estimated school tax 15 levy that would result from adoption of the proposed budget and the 16 percentage increase or decrease in total spending and total school tax 17 levy from the school district budget for the preceding school year; and 18 (ii) the district's tax levy limit determined pursuant to section two 19 thousand twenty-three-a of this title, and the estimated school tax 20 levy, excluding any levy necessary to support the expenditures pursuant 21 to subparagraphs (i) through (iv) of paragraph i of subdivision two of 22 section two thousand twenty-three-a of this title, that would result 23 from adoption of the proposed budget; and (iii) the projected enrollment 24 growth for the school year for which the budget is prepared, and the 25 percentage change in enrollment from the previous year; and [(iii)] (iv) 26 the percentage increase in the consumer price index, as defined in para- 27 graph c of this subdivision; and [(iv)] (v) the projected amount of the 28 unappropriated unreserved fund balance that will be retained if the 29 proposed budget is adopted, the projected amount of the reserved fund 30 balance, the projected amount of the appropriated fund balance, the 31 percentage of the proposed budget that the unappropriated unreserved 32 fund balance represents, the actual unappropriated unreserved fund 33 balance retained in the school district budget for the preceding school 34 year, and the percentage of the school district budget for the preceding 35 school year that the actual unappropriated unreserved fund balance 36 represents. 37 § 5. Paragraph a of subdivision 7 of section 1716 of the education 38 law, as amended by chapter 238 of the laws of 2007, is amended to read 39 as follows: 40 a. Each year, commencing with the proposed budget for the two thou- 41 sand--two thousand one school year, the board of education shall prepare 42 a property tax report card, pursuant to regulations of the commissioner, 43 and shall make it publicly available by transmitting it to local newspa- 44 pers of general circulation, appending it to copies of the proposed 45 budget made publicly available as required by law, making it available 46 for distribution at the annual meeting, and otherwise disseminating it 47 as required by the commissioner. Such report card shall include: (i) the 48 amount of total spending and total estimated school tax levy that would 49 result from adoption of the proposed budget and the percentage increase 50 or decrease in total spending and total school tax levy from the school 51 district budget for the preceding school year; and (ii) the district's 52 tax levy limit determined pursuant to section two thousand 53 twenty-three-a of this title, and the estimated school tax levy, exclud- 54 ing any levy necessary to support the expenditures pursuant to subpara- 55 graphs (i) through (iv) of paragraph i of subdivision two of section two 56 thousand twenty-three-a of this title, that would result from adoptionS. 5856 13 A. 8518 1 of the proposed budget; and (iii) the projected enrollment growth for 2 the school year for which the budget is prepared, and the percentage 3 change in enrollment from the previous year; and [(iii)] (iv) the 4 percentage increase in the consumer price index, as defined in paragraph 5 c of this subdivision; and [(iv)] (v) the projected amount of the unap- 6 propriated unreserved fund balance that will be retained if the proposed 7 budget is adopted, the projected amount of the reserved fund balance, 8 the projected amount of the appropriated fund balance, the percentage of 9 the proposed budget that the unappropriated unreserved fund balance 10 represents, the actual unappropriated unreserved fund balance retained 11 in the school district budget for the preceding school year, and the 12 percentage of the school district budget for the preceding school year 13 that the actual unappropriated unreserved fund balance represents. 14 § 6. Section 2008 of the education law is amended by adding a new 15 subdivision 3 to read as follows: 16 3. Notwithstanding any other provision of law to the contrary, any 17 proposition submitted by the voters that requires the expenditure of 18 money shall be subject to the requirements set forth in subdivision nine 19 of section two thousand twenty-three-a of this part. 20 § 7. Section 2022 of the education law, as amended by section 23 of 21 part A of chapter 436 of the laws of 1997, subdivisions 1 and 3 as 22 amended by section 8 of part C of chapter 58 of the laws of 1998, subdi- 23 vision 2-a as amended by section 3 of part A of chapter 60 of the laws 24 of 2000, paragraph b of subdivision 2-a as amended by section 5 of part 25 W of chapter 57 of the laws of 2008, subdivision 4 as amended by section 26 7 of part M of chapter 57 of the laws of 2005 and subdivision 6 as added 27 by chapter 61 of the laws of 2003, is amended to read as follows: 28 § 2022. Vote on school district budgets and on the election of school 29 district trustees and board of education members. 1. Notwithstanding any 30 law, rule or regulation to the contrary, the election of trustees or 31 members of the board of education, and the vote upon the appropriation 32 of the necessary funds to meet the estimated expenditures, in any common 33 school district, union free school district, central school district or 34 central high school district shall be held at the annual meeting and 35 election on the third Tuesday in May, provided, however, that such 36 election shall be held on the second Tuesday in May if the commissioner 37 at the request of a local school board certifies no later than March 38 first that such election would conflict with religious observances. 39 [When such election or vote is taken by recording the ayes and noes of40the qualified voters attending, a majority of the qualified voters pres-41ent and voting, by a hand or voice vote, may determine to take up the42question of voting the necessary funds to meet the estimated expendi-43tures for a specific item separately, and the qualified voters present44and voting may increase the amount of any estimated expenditures or45reduce the same, except for teachers' salaries, and the ordinary contin-46gent expenses of the schools.] The sole trustee, board of trustees or 47 board of education of every common, union free, central or central high 48 school district and every city school district to which this article 49 applies shall hold a budget hearing not less than seven nor more than 50 fourteen days prior to the annual meeting and election or special 51 district meeting at which a school budget vote will occur, and shall 52 prepare and present to the voters at such budget hearing a proposed 53 school district budget for the ensuing school year. 54 2. Except as provided in subdivision four of this section, nothing in 55 this section shall preclude the trustees or board of education, in their 56 discretion, from submitting additional items of expenditure to theS. 5856 14 A. 8518 1 voters for approval as separate propositions or the voters from submit- 2 ting propositions pursuant to [section] sections two thousand eight and 3 two thousand thirty-five of this [article] part; provided however that 4 such propositions shall be subject to the requirements set forth in 5 subdivision nine of section two thousand twenty-three-a of this part. 6 2-a. Every common, union free, central, central high school district 7 and city school district to which this article applies shall mail a 8 school budget notice to all qualified voters of the school district 9 after the date of the budget hearing, but no later than six days prior 10 to the annual meeting and election or special district meeting at which 11 a school budget vote will occur. The school budget notice shall compare 12 the percentage increase or decrease in total spending under the proposed 13 budget over total spending under the school district budget adopted for 14 the current school year, with the percentage increase or decrease in the 15 consumer price index, from January first of the prior school year to 16 January first of the current school year, and shall also include the 17 information required by paragraphs a and b of this subdivision. The 18 notice shall also set forth the date, time and place of the school budg- 19 et vote, in the same manner as in the notice of annual meeting, and 20 shall also include the district's tax levy limit pursuant to section two 21 thousand twenty-three-a of this part, and the estimated school tax levy, 22 excluding any levy necessary to support the expenditures pursuant to 23 subparagraphs (i) through (iv) of paragraph i of subdivision two of 24 section two thousand twenty-three-a of this part, that would result from 25 adoption of the proposed budget. Such notice shall be in a form 26 prescribed by the commissioner. 27 a. Commencing with the proposed budget for the two thousand one--two 28 thousand two school year, such notice shall also include a description 29 of how total spending and the tax levy resulting from the proposed budg- 30 et would compare with a projected contingency budget adopted pursuant to 31 section two thousand twenty-three of this article, assuming that such 32 contingency budget is adopted on the same day as the vote on the 33 proposed budget. Such comparison shall be in total and by component 34 (program, capital and administrative), and shall include a statement of 35 the assumptions made in estimating the projected contingency budget. 36 b. Commencing with the proposed budget for the two thousand eight--two 37 thousand nine school year, such notice shall also include, in a format 38 prescribed by the commissioner, an estimate of the tax savings that 39 would be available to an eligible homeowner under the basic school tax 40 relief (STAR) exemption authorized by section four hundred twenty-five 41 of the real property tax law if the proposed budget were adopted. Such 42 estimate shall be made in the manner prescribed by the commissioner, in 43 consultation with the office of real property services. 44 3. In all elections for trustees or members of boards of education or 45 votes involving the expenditure of money, or authorizing the levy of 46 taxes, the vote thereon shall be by ballot, or, in school districts that 47 prior to nineteen hundred ninety-eight conducted their vote at the annu- 48 al meeting, may be ascertained by taking and recording the ayes and noes 49 of such qualified voters attending and voting at such district meetings. 50 4. The budget adoption process shall conform to the requirements set 51 forth in section two thousand twenty-three-a of this part. In the event 52 that the original proposed budget is not approved by the voters, the 53 sole trustee, trustees or board of education may adopt a final budget 54 pursuant to subdivision five of this section or resubmit to the voters 55 the original or a revised budget pursuant to subdivision three of 56 section two thousand seven of this part. Upon one defeat of such resub-S. 5856 15 A. 8518 1 mitted budget, the sole trustee, trustees or board of education shall 2 adopt a final budget pursuant to subdivision five of this section. 3 Notwithstanding any other provision of law to the contrary, the school 4 district budget for any school year, or any part of such budget or any 5 propositions involving the expenditure of money for such school year 6 shall not be submitted for a vote of the qualified voters more than 7 twice. 8 5. If the qualified voters fail to approve the proposed school 9 district budget upon resubmission or upon a determination not to resub- 10 mit for a second vote pursuant to subdivision four of this section, the 11 sole trustee, trustees or board of education, after applying thereto the 12 public school moneys and other moneys received or to be received for 13 that purpose, shall levy a tax for the sum necessary for teachers' sala- 14 ries and other ordinary contingent expenses in accordance with the 15 provisions of this subdivision and [section] sections two thousand twen- 16 ty-three and two thousand twenty-three-a of this article. 17 6. Notwithstanding the provisions of subdivision four of section eigh- 18 teen hundred four and subdivision five of section nineteen hundred six 19 of this title, subdivision one of section two thousand two of this arti- 20 cle, subdivision one of this section, subdivision two of section twen- 21 ty-six hundred one-a of this title and any other provision of law to the 22 contrary, the annual district meeting and election of every common, 23 union free, central and central high school district and the annual 24 meeting of every city school district in a city having a population of 25 less than one hundred twenty-five thousand inhabitants that is scheduled 26 to be held on the third Tuesday of May, two thousand three is hereby 27 adjourned until the first Tuesday in June, two thousand three. The trus- 28 tees or board of education of each such school district shall provide 29 notice of such adjourned meeting to the qualified voters in the manner 30 prescribed for notice of the annual meeting, and such notice shall 31 provide for an adjourned budget hearing. The adjourned district meeting 32 or district meeting and election shall be deemed the annual meeting or 33 annual meeting and election of the district for all purposes under this 34 title and the date of the adjourned meeting shall be deemed the state- 35 wide uniform voting day for all purposes under this title. Notwith- 36 standing the provisions of subdivision seven of section sixteen hundred 37 eight or subdivision seven of section seventeen hundred sixteen of this 38 title or any other provision of law, rule or regulation to the contrary, 39 in two thousand three the property tax report card shall be submitted to 40 the department no later than twenty days prior to the date of the 41 adjourned meeting and the department shall make its compilation avail- 42 able electronically at least seven days prior to such date. 43 § 8. Section 2035 of the education law is amended by adding a new 44 subdivision 3 to read as follows: 45 3. Any proposition submitted pursuant to this section shall be subject 46 to the requirements set forth in subdivision nine of section two thou- 47 sand twenty-three-a of this part. 48 § 9. Section 2601-a of the education law, as added by chapter 171 of 49 the laws of 1996, subdivision 2 as amended by section 6 and subdivision 50 4 as amended by section 8 of part M of chapter 57 of the laws of 2005, 51 subdivision 3 as amended by chapter 640 of the laws of 2008, subdivision 52 5 as amended by section 29 of part A of chapter 436 of the laws of 1997, 53 subdivision 6 as amended and subdivision 7 as added by chapter 474 of 54 the laws of 1996, is amended to read as follows: 55 § 2601-a. Procedures for adoption of school budgets in small city 56 school districts. 1. The board of education of each city school districtS. 5856 16 A. 8518 1 subject to this article shall provide for the submission of a budget for 2 approval of the voters pursuant to the provisions of this section and in 3 accordance with the requirements set forth in section two thousand twen- 4 ty-three-a of this title. 5 2. The board of education shall conduct all annual and special school 6 district meetings for the purpose of adopting a school district budget 7 in the same manner as a union free school district in accordance with 8 the provisions of article forty-one of this title, except as otherwise 9 provided by this section. The annual meeting and election of each such 10 city school district shall be held on the third Tuesday of May in each 11 year, provided, however that such annual meeting and election shall be 12 held on the second Tuesday in May if the commissioner at the request of 13 a local school board certifies no later than March first that such 14 election would conflict with religious observances, and any school budg- 15 et revote shall be held on the date and in the same manner specified in 16 subdivision three of section two thousand seven of this title. The 17 provisions of this article, and where applicable subdivisions nine and 18 nine-a of section twenty-five hundred two of this title, governing the 19 qualification and registration of voters, and procedures for the nomi- 20 nation and election of members of the board of education shall continue 21 to apply, and shall govern the qualification and registration of voters 22 and voting procedures with respect to the adoption of a school district 23 budget. 24 3. The board of education shall prepare a proposed school district 25 budget for the ensuing year in accordance with the provisions of section 26 seventeen hundred sixteen of this chapter, including all provisions 27 relating to required notices and appendices to the statement of expendi- 28 tures. No board of education shall incur a school district liability 29 except as authorized by the provisions of section seventeen hundred 30 eighteen of this chapter. Such proposed budget shall be presented in 31 three components: a program component, a capital component and an admin- 32 istrative component which shall be separately delineated in accordance 33 with regulations of the commissioner after consultation with local 34 school district officials. The administrative component shall include, 35 but need not be limited to, office and central administrative expenses, 36 traveling expenses and all compensation, salaries and benefits of all 37 school administrators and supervisors, including business administra- 38 tors, superintendents of schools and deputy, assistant, associate or 39 other superintendents under all existing employment contracts or collec- 40 tive bargaining agreements, any and all expenditures associated with the 41 operation of the board of education, the office of the superintendent of 42 schools, general administration, the school business office, consulting 43 costs not directly related to direct student services and programs, 44 planning and all other administrative activities. The program component 45 shall include, but need not be limited to, all program expenditures of 46 the school district, including the salaries and benefits of teachers and 47 any school administrators or supervisors who spend a majority of their 48 time performing teaching duties, and all transportation operating 49 expenses. The capital component shall include, but need not be limited 50 to, all transportation capital, debt service, and lease expenditures; 51 costs resulting from judgments in tax certiorari proceedings or the 52 payment of awards from court judgments, administrative orders or settled 53 or compromised claims; and all facilities costs of the school district, 54 including facilities lease expenditures, the annual debt service and 55 total debt for all facilities financed by bonds and notes of the school 56 district, and the costs of construction, acquisition, reconstruction,S. 5856 17 A. 8518 1 rehabilitation or improvement of school buildings, provided that such 2 budget shall include a rental, operations and maintenance section that 3 includes base rent costs, total rent costs, operation and maintenance 4 charges, cost per square foot for each facility leased by the school 5 district, and any and all expenditures associated with custodial sala- 6 ries and benefits, service contracts, supplies, utilities, and mainte- 7 nance and repairs of school facilities. For the purposes of the develop- 8 ment of a budget for the nineteen hundred ninety-seven--ninety-eight 9 school year, the board of education shall separate its program, capital 10 and administrative costs for the nineteen hundred ninety-six--ninety- 11 seven school year in the manner as if the budget for such year had been 12 presented in three components. Except as provided in subdivision four of 13 this section, nothing in this section shall preclude the board, in its 14 discretion, from submitting additional items of expenditure to the 15 voters for approval as separate propositions or the voters from submit- 16 ting propositions pursuant to sections two thousand eight and two thou- 17 sand thirty-five of this chapter subject to the requirements set forth 18 in subdivision nine of section two thousand twenty-three-a of this part. 19 4. The budget adoption process shall conform to the requirements set 20 forth in section two thousand twenty-three-a of this title. In the event 21 the qualified voters of the district reject the budget proposed pursuant 22 to subdivision three of this section, the board may propose to the 23 voters a revised budget pursuant to subdivision three of section two 24 thousand seven of this title or may adopt a contingency budget pursuant 25 to subdivision five of this section and subdivision five of section two 26 thousand twenty-two of this title. The school district budget for any 27 school year, or any part of such budget or any propositions involving 28 the expenditure of money for such school year shall not be submitted for 29 a vote of the qualified voters more than twice. In the event the quali- 30 fied voters reject the resubmitted budget, the board shall adopt a 31 contingency budget in accordance with subdivision five of this section 32 and subdivision five of such section two thousand twenty-two of this 33 title. 34 5. If the qualified voters fail or refuse to vote the sum estimated to 35 be necessary for teachers' salaries and other ordinary contingent 36 expenses, the board shall adopt a contingency budget in accordance with 37 this subdivision and shall levy a tax for that portion of such sum 38 remaining after applying thereto the moneys received or to be received 39 from state, federal or other sources, in the same manner as if the budg- 40 et had been approved by the qualified voters; subject to the limitations 41 imposed in subdivision four of section two thousand twenty-three of this 42 chapter, subdivision eight of section two thousand twenty-three-a of 43 this title and this subdivision. The administrative component shall not 44 comprise a greater percentage of the contingency budget exclusive of the 45 capital component than the lesser of (1) the percentage the administra- 46 tive component had comprised in the prior year budget exclusive of the 47 capital component; or (2) the percentage the administrative component 48 had comprised in the last proposed defeated budget exclusive of the 49 capital component. Such contingency budget shall include the sum deter- 50 mined by the board to be necessary for: 51 (a) teachers' salaries, including the salaries of all members of the 52 teaching and supervising staff; 53 (b) items of expense specifically authorized by statute to be incurred 54 by the board of education, including, but not limited to, expenditures 55 for transportation to and from regular school programs included as ordi- 56 nary contingent expenses in subdivision twelve of section twenty-fiveS. 5856 18 A. 8518 1 hundred three of this chapter, expenditures for textbooks, required 2 services for non-public school students, school health services, special 3 education services, kindergarten and nursery school programs, and the 4 district's share of the administrative costs and costs of services 5 provided by a board of cooperative educational services; 6 (c) items of expense for legal obligations of the district, including, 7 but not limited to, contractual obligations, debt service, court orders 8 or judgments, orders of administrative bodies or officers, and standards 9 and requirements of the board of regents and the commissioner that have 10 the force and effect of law; 11 (d) the purchase of library books and other instructional materials 12 associated with a library; 13 (e) items of expense necessary to maintain the educational programs of 14 the district, preserve the property of the district or protect the 15 health and safety of students and staff, including, but not limited to, 16 support services, pupil personnel services, the necessary salaries for 17 the necessary number of non-teaching employees, necessary legal 18 expenses, water and utility charges, instructional supplies for teach- 19 ers' use, emergency repairs, temporary rental of essential classroom 20 facilities, and expenditures necessary to advise school district voters 21 concerning school matters; and 22 (f) expenses incurred for interschool athletics, field trips and other 23 extracurricular activities; and 24 (g) any other item of expense determined by the commissioner to be an 25 ordinary contingent expense in any school district. 26 6. The commissioner shall determine appeals raising questions as to 27 what items of expenditure are ordinary contingent expenses pursuant to 28 subdivision five of this section in accordance with section two thousand 29 twenty-four and three hundred ten of this chapter. 30 7. Each year, the board of education shall prepare a school district 31 report card, pursuant to regulations of the commissioner, and shall make 32 it publicly available by transmitting it to local newspapers of general 33 circulation, appending it to copies of the proposed budget made publicly 34 available as required by law, making it available for distribution at 35 the annual meeting, and otherwise disseminating it as required by the 36 commissioner. Such report card shall include measures of the academic 37 performance of the school district, on a school by school basis, and 38 measures of the fiscal performance of the district, as prescribed by the 39 commissioner. Pursuant to regulations of the commissioner, the report 40 card shall also compare these measures to statewide averages for all 41 public schools, and statewide averages for public schools of comparable 42 wealth and need, developed by the commissioner. Such report card shall 43 include, at a minimum, any information on the school district regarding 44 pupil performance and expenditure per pupil required to be included in 45 the annual report by the regents to the governor and the legislature 46 pursuant to section two hundred fifteen-a of this chapter; and any other 47 information required by the commissioner. School districts (i) identi- 48 fied as having fifteen percent or more of their students in special 49 education, or (ii) which have fifty percent or more of their students 50 with disabilities in special education programs or services sixty 51 percent or more of the school day in a general education building, or 52 (iii) which have eight percent or more of their students with disabili- 53 ties in special education programs in public or private separate educa- 54 tional settings shall indicate on their school district report card 55 their respective percentages as defined in this paragraph and paragraphs 56 (i) and (ii) of this subdivision as compared to the statewide average.S. 5856 19 A. 8518 1 § 10. Paragraph b-1 of subdivision 4 of section 3602 of the education 2 law, as amended by section 26 of part A of chapter 58 of the laws of 3 2011, is amended to read as follows: 4 b-1. Notwithstanding any other provision of law to the contrary, for 5 the two thousand seven--two thousand eight [through] school year and 6 thereafter, the additional amount payable to each school district pursu- 7 ant to this subdivision in the current year as total foundation aid, 8 after deducting the total foundation aid base, shall be deemed a state 9 grant in aid identified by the commissioner for general use for purposes 10 of [sections] section seventeen hundred eighteen [and two thousand twen-11ty-three] of this chapter. 12 § 11. Paragraph a of subdivision 1 of section 3635 of the education 13 law, as amended by chapter 69 of the laws of 1992, is amended to read as 14 follows: 15 a. Sufficient transportation facilities (including the operation and 16 maintenance of motor vehicles) shall be provided by the school district 17 for all the children residing within the school district to and from the 18 school they legally attend, who are in need of such transportation 19 because of the remoteness of the school to the child or for the 20 promotion of the best interest of such children. Such transportation 21 shall be provided for all children attending grades kindergarten through 22 eight who live more than two miles from the school which they legally 23 attend and for all children attending grades nine through twelve who 24 live more than three miles from the school which they legally attend and 25 shall be provided for each such child up to a distance of fifteen miles, 26 the distances in each case being measured by the nearest available route 27 from home to school. The cost of providing such transportation between 28 two or three miles, as the case may be, and fifteen miles shall be 29 considered for the purposes of this chapter to be a charge upon the 30 district and an ordinary contingent expense of the district. Transporta- 31 tion for a lesser distance than two miles in the case of children 32 attending grades kindergarten through eight or three miles in the case 33 of children attending grades nine through twelve and for a greater 34 distance than fifteen miles may be provided by the district with the 35 approval of the qualified voters, and, if provided, shall be offered 36 equally to all children in like circumstances residing in the district; 37 provided, however, that this requirement shall not apply to transporta- 38 tion offered pursuant to section thirty-six hundred thirty-five-b of 39 this article. 40 § 12. Nothing contained in this act shall impair or invalidate the 41 powers or duties, as authorized by law, of a control board, interim 42 finance authority or fiscal stability authority including such powers or 43 duties that may require the tax levy limit, as that term is defined in 44 section one or section two of this act, to be exceeded. 45 § 13. This act shall take effect immediately; provided, however, that 46 sections two through eleven of this act shall take effect July 1, 2011 47 and shall first apply to school district budgets and the budget adoption 48 process for the 2012-13 school year; and shall continue to apply to 49 school district budgets and the budget adoption process for any school 50 year beginning in any calendar year during which this act is in effect; 51 provided further, that if section 26 of part A of chapter 58 of the laws 52 of 2011 shall not have taken effect on or before such date then section 53 ten of this act shall take effect on the same date and in the same 54 manner as such chapter of the laws of 2011, takes effect; provided 55 further, that section one of this act shall first apply to the levy of 56 taxes by local governments for the fiscal year that begins in 2012 andS. 5856 20 A. 8518 1 shall continue to apply to the levy of taxes by local governments for 2 any fiscal year beginning in any calendar year during which this act is 3 in effect; provided, further, that this act shall remain in full force 4 and effect at a minimum until and including June 15, 2016 and shall 5 remain in effect thereafter only so long as the public emergency requir- 6 ing the regulation and control of residential rents and evictions and 7 all such laws providing for such regulation and control continue as 8 provided in subdivision 3 of section 1 of the local emergency rent 9 control act, sections 26-501, 26-502 and 26-520 of the administrative 10 code of the city of New York, section 17 of chapter 576 of the laws of 11 1974 and subdivision 2 of section 1 of chapter 274 of the laws of 1946 12 constituting the emergency housing rent control law, and section 10 of 13 chapter 555 of the laws of 1982, amending the general business law and 14 the administrative code of the city of New York relating to conversions 15 of residential property to cooperative or condominium ownership in the 16 city of New York as such laws are continued by chapter 93 of the laws of 17 2011 and as such sections are amended from time to time. 18 PART B 19 Section 1. Short title. This act shall be known and may be cited as 20 the "rent act of 2011." 21 § 1-a. Section 17 of chapter 576 of the laws of 1974 amending the 22 emergency housing rent control law relating to the control of and 23 stabilization of rent in certain cases, as amended by chapter 93 of the 24 laws of 2011, is amended to read as follows: 25 § 17. Effective date. This act shall take effect immediately and 26 shall remain in full force and effect until and including the [twenty-27third] fifteenth day of June [2011] 2015; except that sections two and 28 three shall take effect with respect to any city having a population of 29 one million or more and section one shall take effect with respect to 30 any other city, or any town or village whenever the local legislative 31 body of a city, town or village determines the existence of a public 32 emergency pursuant to section three of the emergency tenant protection 33 act of nineteen seventy-four, as enacted by section four of this act, 34 and provided that the housing accommodations subject on the effective 35 date of this act to stabilization pursuant to the New York city rent 36 stabilization law of nineteen hundred sixty-nine shall remain subject to 37 such law upon the expiration of this act. 38 § 2. Subdivision 2 of section 1 of chapter 274 of the laws of 1946 39 constituting the emergency housing rent control law, as amended by chap- 40 ter 93 of the laws of 2011, is amended to read as follows: 41 2. The provisions of this act, and all regulations, orders and 42 requirements thereunder shall remain in full force and effect until and 43 including June [23, 2011] 15, 2015. 44 § 3. Section 2 of chapter 329 of the laws of 1963 amending the emer- 45 gency housing rent control law relating to recontrol of rents in Albany, 46 as amended by chapter 93 of the laws of 2011, is amended to read as 47 follows: 48 § 2. This act shall take effect immediately and the provisions of 49 subdivision 6 of section 12 of the emergency housing rent control law, 50 as added by this act, shall remain in full force and effect until and 51 including June [23, 2011] 15, 2015. 52 § 4. Section 10 of chapter 555 of the laws of 1982 amending the gener- 53 al business law and the administrative code of the city of New York 54 relating to conversion of residential property to cooperative or condo-S. 5856 21 A. 8518 1 minium ownership in the city of New York, as amended by chapter 93 of 2 the laws of 2011, is amended to read as follows: 3 § 10. This act shall take effect immediately; provided, that the 4 provisions of sections one, two and nine of this act shall remain in 5 full force and effect only until and including June [23, 2011] 15, 2015; 6 provided further that the provisions of section three of this act shall 7 remain in full force and effect only so long as the public emergency 8 requiring the regulation and control of residential rents and evictions 9 continues as provided in subdivision 3 of section 1 of the local emer- 10 gency housing rent control act; provided further that the provisions of 11 sections four, five, six and seven of this act shall expire in accord- 12 ance with the provisions of section 26-520 of the administrative code of 13 the city of New York as such section of the administrative code is, from 14 time to time, amended; provided further that the provisions of section 15 26-511 of the administrative code of the city of New York, as amended by 16 this act, which the New York City Department of Housing Preservation and 17 Development must find are contained in the code of the real estate 18 industry stabilization association of such city in order to approve it, 19 shall be deemed contained therein as of the effective date of this act; 20 and provided further that any plan accepted for filing by the department 21 of law on or before the effective date of this act shall continue to be 22 governed by the provisions of section 352-eeee of the general business 23 law as they had existed immediately prior to the effective date of this 24 act. 25 § 5. Section 4 of chapter 402 of the laws of 1983 amending the general 26 business law relating to conversion of rental residential property to 27 cooperative or condominium ownership in certain municipalities in the 28 counties of Nassau, Westchester and Rockland, as amended by chapter 93 29 of the laws of 2011, is amended to read as follows: 30 § 4. This act shall take effect immediately; provided, that the 31 provisions of sections one and three of this act shall remain in full 32 force and effect only until and including June [23, 2011] 15, 2015; and 33 provided further that any plan accepted for filing by the department of 34 law on or before the effective date of this act shall continue to be 35 governed by the provisions of section 352-eee of the general business 36 law as they had existed immediately prior to the effective date of this 37 act. 38 § 6. Subdivision 6 of section 46 of chapter 116 of the laws of 1997 39 constituting the rent regulation reform act of 1997, as amended by chap- 40 ter 93 of the laws of 2011, is amended to read as follows: 41 6. sections twenty-eight, twenty-eight-a, twenty-eight-b and twenty- 42 eight-c of this act shall expire and be deemed repealed after June [23,432011] 15, 2015; 44 § 7. Paragraph 5-a of subdivision c of section 26-511 of the adminis- 45 trative code of the city of New York, as added by chapter 116 of the 46 laws of 1997, is amended to read as follows: 47 (5-a) provides that, notwithstanding any provision of this chapter, 48 the legal regulated rent for any vacancy lease entered into after the 49 effective date of this paragraph shall be as hereinafter provided in 50 this paragraph. The previous legal regulated rent for such housing 51 accommodation shall be increased by the following: (i) if the vacancy 52 lease is for a term of two years, twenty percent of the previous legal 53 regulated rent; or (ii) if the vacancy lease is for a term of one year 54 the increase shall be twenty percent of the previous legal regulated 55 rent less an amount equal to the difference between (a) the two year 56 renewal lease guideline promulgated by the guidelines board of the cityS. 5856 22 A. 8518 1 of New York applied to the previous legal regulated rent and (b) the one 2 year renewal lease guideline promulgated by the guidelines board of the 3 city of New York applied to the previous legal regulated rent. In addi- 4 tion, if the legal regulated rent was not increased with respect to such 5 housing accommodation by a permanent vacancy allowance within eight 6 years prior to a vacancy lease executed on or after the effective date 7 of this paragraph, the legal regulated rent may be further increased by 8 an amount equal to the product resulting from multiplying such previous 9 legal regulated rent by six-tenths of one percent and further multiply- 10 ing the amount of rent increase resulting therefrom by the greater of 11 (A) the number of years since the imposition of the last permanent 12 vacancy allowance, or (B) if the rent was not increased by a permanent 13 vacancy allowance since the housing accommodation became subject to this 14 chapter, the number of years that such housing accommodation has been 15 subject to this chapter. Provided that if the previous legal regulated 16 rent was less than three hundred dollars the total increase shall be as 17 calculated above plus one hundred dollars per month. Provided, further, 18 that if the previous legal regulated rent was at least three hundred 19 dollars and no more than five hundred dollars in no event shall the 20 total increase pursuant to this paragraph be less than one hundred 21 dollars per month. Such increase shall be in lieu of any allowance 22 authorized for the one or two year renewal component thereof, but shall 23 be in addition to any other increases authorized pursuant to this chap- 24 ter including an adjustment based upon a major capital improvement, or a 25 substantial modification or increase of dwelling space or services, or 26 installation of new equipment or improvements or new furniture or 27 furnishings provided in or to the housing accommodation pursuant to this 28 section. The increase authorized in this paragraph may not be imple- 29 mented more than one time in any calendar year, notwithstanding the 30 number of vacancy leases entered into in such year. 31 § 8. Subdivision (a-1) of section 10 of section 4 of chapter 576 of 32 the laws of 1974, constituting the emergency tenant protection act of 33 nineteen seventy-four, as added by chapter 116 of the laws of 1997, is 34 amended to read as follows: 35 (a-1) provides that, notwithstanding any provision of this act, the 36 legal regulated rent for any vacancy lease entered into after the effec- 37 tive date of this subdivision shall be as hereinafter set forth. The 38 previous legal regulated rent for such housing accommodation shall be 39 increased by the following: (i) if the vacancy lease is for a term of 40 two years, twenty percent of the previous legal regulated rent; or (ii) 41 if the vacancy lease is for a term of one year the increase shall be 42 twenty percent of the previous legal regulated rent less an amount equal 43 to the difference between (a) the two year renewal lease guideline 44 promulgated by the guidelines board of the county in which the housing 45 accommodation is located applied to the previous legal regulated rent 46 and (b) the one year renewal lease guideline promulgated by the guide- 47 lines board of the county in which the housing accommodation is located 48 applied to the previous legal regulated rent. In addition, if the legal 49 regulated rent was not increased with respect to such housing accommo- 50 dation by a permanent vacancy allowance within eight years prior to a 51 vacancy lease executed on or after the effective date of this subdivi- 52 sion, the legal regulated rent may be further increased by an amount 53 equal to the product resulting from multiplying such previous legal 54 regulated rent by six-tenths of one percent and further multiplying the 55 amount of rent increase resulting therefrom by the greater of (A) the 56 number of years since the imposition of the last permanent vacancyS. 5856 23 A. 8518 1 allowance, or (B) if the rent was not increased by a permanent vacancy 2 allowance since the housing accommodation became subject to this act, 3 the number of years that such housing accommodation has been subject to 4 this act. Provided that if the previous legal regulated rent was less 5 than three hundred dollars the total increase shall be as calculated 6 above plus one hundred dollars per month. Provided, further, that if the 7 previous legal regulated rent was at least three hundred dollars and no 8 more than five hundred dollars in no event shall the total increase 9 pursuant to this subdivision be less than one hundred dollars per month. 10 Such increase shall be in lieu of any allowance authorized for the one 11 or two year renewal component thereof, but shall be in addition to any 12 other increases authorized pursuant to this act including an adjustment 13 based upon a major capital improvement, or a substantial modification or 14 increase of dwelling space or services, or installation of new equipment 15 or improvements or new furniture or furnishings provided in or to the 16 housing accommodation pursuant to section six of this act. The increase 17 authorized in this subdivision may not be implemented more than one time 18 in any calendar year, notwithstanding the number of vacancy leases 19 entered into in such year. 20 § 9. Paragraph (n) of subdivision 2 of section 2 of chapter 274 of the 21 laws of 1946, constituting the emergency housing rent control law, as 22 amended by chapter 82 of the laws of 2003, is amended to read as 23 follows: 24 (n) any housing accommodation with a maximum rent of two thousand 25 dollars or more per month at any time between the effective date of this 26 paragraph and October first, nineteen hundred ninety-three which is or 27 becomes vacant on or after the effective date of this paragraph[,]; or, 28 for any housing accommodation with a maximum rent of two thousand 29 dollars or more per month at any time on or after the effective date of 30 the rent regulation reform act of 1997 and before the effective date of 31 the rent act of 2011, which is or becomes vacant on or after the effec- 32 tive date of the rent regulation reform act of 1997 and before the 33 effective date of the rent act of 2011. This exclusion shall apply 34 regardless of whether the next tenant in occupancy or any subsequent 35 tenant in occupancy is charged or pays less than two thousand dollars a 36 month; or, for any housing accommodation with a maximum rent of two 37 thousand five hundred dollars or more per month at any time on or after 38 the effective date of the rent act of 2011, which is or becomes vacant 39 on or after such effective date. This exclusion shall apply regardless 40 of whether the next tenant in occupancy or any subsequent tenant in 41 occupancy actually is charged or pays less than two thousand five 42 hundred dollars a month. [This] An exclusion pursuant to this paragraph 43 shall not apply, however, to or become effective with respect to housing 44 accommodations which the commissioner determines or finds that the land- 45 lord or any person acting on his or her behalf, with intent to cause the 46 tenant to vacate, has engaged in any course of conduct (including, but 47 not limited to, interruption or discontinuance of required services) 48 which interfered with or disturbed or was intended to interfere with or 49 disturb the comfort, repose, peace or quiet of the tenant in his or her 50 use or occupancy of the housing accommodations and in connection with 51 such course of conduct, any other general enforcement provision of this 52 law shall also apply. 53 § 10. Paragraph 13 of subdivision a of section 5 of section 4 of chap- 54 ter 576 of the laws of 1974, constituting the emergency tenant 55 protection act of nineteen seventy-four, as amended by chapter 82 of the 56 laws of 2003, is amended to read as follows:S. 5856 24 A. 8518 1 (13) any housing accommodation with a legal regulated rent of two 2 thousand dollars or more per month at any time between the effective 3 date of this paragraph and October first, nineteen hundred ninety-three 4 which is or becomes vacant on or after the effective date of this para- 5 graph[,]; or, for any housing accommodation with a legal regulated rent 6 of two thousand dollars or more per month at any time on or after the 7 effective date of the rent regulation reform act of 1997 and before the 8 effective date of the rent act of 2011, which is or becomes vacant on or 9 after the effective date of the rent regulation reform act of 1997 and 10 before the effective date of the rent act of 2011. This exclusion shall 11 apply regardless of whether the next tenant in occupancy or any subse- 12 quent tenant in occupancy is charged or pays less than two thousand 13 dollars a month; or, for any housing accommodation with a legal regu- 14 lated rent of two thousand five hundred dollars or more per month at any 15 time on or after the effective date of the rent act of 2011, which is or 16 becomes vacant on or after such effective date. [This] An exclusion 17 pursuant to this paragraph shall apply regardless of whether the next 18 tenant in occupancy or any subsequent tenant in occupancy actually is 19 charged or pays less than two thousand five hundred dollars a month. 20 Provided however, that [this] an exclusion pursuant to this paragraph 21 shall not apply to housing accommodations which became or become subject 22 to this act (a) by virtue of receiving tax benefits pursuant to section 23 four hundred twenty-one-a or four hundred eighty-nine of the real prop- 24 erty tax law, except as otherwise provided in subparagraph (i) of para- 25 graph (f) of subdivision two of section four hundred twenty-one-a of the 26 real property tax law, or (b) by virtue of article seven-C of the multi- 27 ple dwelling law. This paragraph shall not apply, however, to or become 28 effective with respect to housing accommodations which the commissioner 29 determines or finds that the landlord or any person acting on his or her 30 behalf, with intent to cause the tenant to vacate, has engaged in any 31 course of conduct (including, but not limited to, interruption or 32 discontinuance of required services) which interfered with or disturbed 33 or was intended to interfere with or disturb the comfort, repose, peace 34 or quiet of the tenant in his or her use or occupancy of the housing 35 accommodations and in connection with such course of conduct, any other 36 general enforcement provision of this act shall also apply. 37 § 11. Subparagraph (k) of paragraph 2 of subdivision e of section 38 26-403 of the administrative code of the city of New York, as amended by 39 chapter 82 of the laws of 2003, is amended to read as follows: 40 (k) Any housing accommodation which becomes vacant on or after April 41 first, nineteen hundred ninety-seven and before the effective date of 42 the rent act of 2011, and where at the time the tenant vacated such 43 housing accommodation the maximum rent was two thousand dollars or more 44 per month; or, for any housing accommodation which is or becomes vacant 45 on or after the effective date of the rent regulation reform act of 1997 46 and before the effective date of the rent act of 2011 with a maximum 47 rent of two thousand dollars or more per month. This exclusion shall 48 apply regardless of whether the next tenant in occupancy or any subse- 49 quent tenant in occupancy is charged or pays less than two thousand 50 dollars a month; or, for any housing accommodation with a maximum rent 51 of two thousand five hundred dollars or more per month at any time on or 52 after the effective date of the rent act of 2011, which is or becomes 53 vacant on or after such effective date. This exclusion shall apply 54 regardless of whether the next tenant in occupancy or any subsequent 55 tenant in occupancy actually is charged or pays less than two thousand 56 five hundred dollars a month. Provided however, that [this] an exclu-S. 5856 25 A. 8518 1 sion pursuant to this subparagraph shall not apply to housing accommo- 2 dations which became or become subject to this law by virtue of receiv- 3 ing tax benefits pursuant to section four hundred eighty-nine of the 4 real property tax law. This subparagraph shall not apply, however, to or 5 become effective with respect to housing accommodations which the 6 commissioner determines or finds that the landlord or any person acting 7 on his or her behalf, with intent to cause the tenant to vacate, has 8 engaged in any course of conduct (including, but not limited to, inter- 9 ruption or discontinuance of required services) which interfered with or 10 disturbed or was intended to interfere with or disturb the comfort, 11 repose, peace or quiet of the tenant in his or her use or occupancy of 12 the housing accommodations and in connection with such course of 13 conduct, any other general enforcement provision of this law shall also 14 apply. 15 § 12. Section 26-504.2 of the administrative code of the city of New 16 York, as amended by chapter 116 of the laws of 1997, subdivision a as 17 amended by chapter 82 of the laws of 2003 and subdivision b as added by 18 local law number 12 of the city of New York for the year 2000, is 19 amended to read as follows: 20 § 26-504.2 Exclusion of high rent accommodations. a. "Housing accommo- 21 dations" shall not include: any housing accommodation which becomes 22 vacant on or after April first, nineteen hundred ninety-seven and before 23 the effective date of the rent act of 2011 and where at the time the 24 tenant vacated such housing accommodation the legal regulated rent was 25 two thousand dollars or more per month[,]; or, for any housing accommo- 26 dation which is or becomes vacant on or after the effective date of the 27 rent regulation reform act of 1997 and before the effective date of the 28 rent act of 2011, with a legal regulated rent of two thousand dollars or 29 more per month. This exclusion shall apply regardless of whether the 30 next tenant in occupancy or any subsequent tenant in occupancy is 31 charged or pays less than two thousand dollars a month; or, for any 32 housing accommodation with a legal regulated rent of two thousand five 33 hundred dollars or more per month at any time on or after the effective 34 date of the rent act of 2011, which is or becomes vacant on or after 35 such effective date. This exclusion shall apply regardless of whether 36 the next tenant in occupancy or any subsequent tenant in occupancy actu- 37 ally is charged or pays less than two thousand five hundred dollars a 38 month. Provided however, that [this] an exclusion pursuant to this 39 subdivision shall not apply to housing accommodations which became or 40 become subject to this law (a) by virtue of receiving tax benefits 41 pursuant to section four hundred twenty-one-a or four hundred eighty- 42 nine of the real property tax law, except as otherwise provided in 43 subparagraph (i) of paragraph (f) of subdivision two of section four 44 hundred twenty-one-a of the real property tax law, or (b) by virtue of 45 article seven-C of the multiple dwelling law. This section shall not 46 apply, however, to or become effective with respect to housing accommo- 47 dations which the commissioner determines or finds that the landlord or 48 any person acting on his or her behalf, with intent to cause the tenant 49 to vacate, engaged in any course of conduct (including, but not limited 50 to, interruption or discontinuance of required services) which interfer- 51 ed with or disturbed or was intended to interfere with or disturb the 52 comfort, repose, peace or quiet of the tenant in his or her use or occu- 53 pancy of the housing accommodations and in connection with such course 54 of conduct, any other general enforcement provision of this law shall 55 also apply.S. 5856 26 A. 8518 1 b. The owner of any housing accommodation that is not subject to this 2 law pursuant to the provisions of subdivision a of this section or 3 subparagraph k of paragraph 2 of subdivision e of section 26-403 of this 4 code shall give written notice certified by such owner to the first 5 tenant of that housing accommodation after such housing accommodation 6 becomes exempt from the provisions of this law or the city rent and 7 rehabilitation law. Such notice shall contain the last regulated rent, 8 the reason that such housing accommodation is not subject to this law or 9 the city rent and rehabilitation law, a calculation of how either the 10 rental amount charged when there is no lease or the rental amount 11 provided for in the lease has been derived so as to reach two thousand 12 dollars or more per month or, for a housing accommodation with a legal 13 regulated rent or maximum rent of two thousand five hundred dollars or 14 more per month on or after the effective date of the rent act of 2011, 15 which is or becomes vacant on or after such effective date, whether the 16 next tenant in occupancy or any subsequent tenant in occupancy actually 17 is charged or pays less than a legal regulated rent or maximum rent of 18 two thousand five hundred dollars or more per month, a statement that 19 the last legal regulated rent or the maximum rent may be verified by the 20 tenant by contacting the state division of housing and community 21 renewal, or any successor thereto, and the address and telephone number 22 of such agency, or any successor thereto. Such notice shall be sent by 23 certified mail within thirty days after the tenancy commences or after 24 the signing of the lease by both parties, whichever occurs first or 25 shall be delivered to the tenant at the signing of the lease. In addi- 26 tion, the owner shall send and certify to the tenant a copy of the 27 registration statement for such housing accommodation filed with the 28 state division of housing and community renewal indicating that such 29 housing accommodation became exempt from the provisions of this law or 30 the city rent and rehabilitation law, which form shall include the last 31 regulated rent, and shall be sent to the tenant within thirty days after 32 the tenancy commences or the filing of such registration, whichever 33 occurs later. 34 § 13. Subdivision a-2 of section 10 of section 4 of chapter 576 of the 35 laws of 1974, constituting the emergency tenant protection act of nine- 36 teen seventy-four, as added by chapter 82 of the laws of 2003, is 37 amended to read as follows: 38 [a-2.] (a-2) Provides that where the amount of rent charged to and 39 paid by the tenant is less than the legal regulated rent for the housing 40 accommodation, the amount of rent for such housing accommodation which 41 may be charged upon renewal or upon vacancy thereof may, at the option 42 of the owner, be based upon such previously established legal regulated 43 rent, as adjusted by the most recent applicable guidelines increases and 44 other increases authorized by law. Where, subsequent to vacancy, such 45 legal regulated rent, as adjusted by the most recent applicable guide- 46 lines increases and any other increases authorized by law is two thou- 47 sand dollars or more per month or, for any housing accommodation which 48 is or becomes vacant on or after the effective date of the rent act of 49 2011, is two thousand five hundred dollars or more per month, such hous- 50 ing accommodation shall be excluded from the provisions of this act 51 pursuant to paragraph thirteen of subdivision a of section five of this 52 act. 53 § 14. Paragraph 14 of subdivision c of section 26-511 of the adminis- 54 trative code of the city of New York, as added by chapter 82 of the laws 55 of 2003, is amended to read as follows:S. 5856 27 A. 8518 1 (14) provides that where the amount of rent charged to and paid by the 2 tenant is less than the legal regulated rent for the housing accommo- 3 dation, the amount of rent for such housing accommodation which may be 4 charged upon renewal or upon vacancy thereof may, at the option of the 5 owner, be based upon such previously established legal regulated rent, 6 as adjusted by the most recent applicable guidelines increases and any 7 other increases authorized by law. Where, subsequent to vacancy, such 8 legal regulated rent, as adjusted by the most recent applicable guide- 9 lines increases and any other increases authorized by law is two thou- 10 sand dollars or more per month or, for any housing accommodation which 11 is or becomes vacant on or after the effective date of the rent act of 12 2011, is two thousand five hundred dollars or more per month, such hous- 13 ing accommodation shall be excluded from the provisions of this law 14 pursuant to section 26-504.2 of this chapter. 15 § 15. Subparagraph (e) of paragraph 1 of subdivision g of section 16 26-405 of the administrative code of the city of New York, as amended by 17 chapter 253 of the laws of 1993, is amended to read as follows: 18 (e) The landlord and tenant by mutual voluntary written agreement 19 agree to a substantial increase or decrease in dwelling space or a 20 change in the services, furniture, furnishings or equipment provided in 21 the housing accommodations. An adjustment under this subparagraph shall 22 be equal to one-fortieth, in the case of a building with thirty-five or 23 fewer housing accommodations, or one-sixtieth, in the case of a building 24 with more than thirty-five housing accommodations where such adjustment 25 takes effect on or after September twenty-fourth, two thousand eleven, 26 of the total cost incurred by the landlord in providing such modifica- 27 tion or increase in dwelling space, services, furniture, furnishings or 28 equipment, including the cost of installation, but excluding finance 29 charges, provided further [than] that an owner who is entitled to a rent 30 increase pursuant to this subparagraph shall not be entitled to a 31 further rent increase based upon the installation of similar equipment, 32 or new furniture or furnishings within the useful life of such new 33 equipment, or new furniture or furnishings. The owner shall give written 34 notice to the city rent agency of any such adjustment pursuant to this 35 subparagraph[.]; or 36 § 16. Paragraph 13 of subdivision c of section 26-511 of the adminis- 37 trative code of the city of New York, as added by chapter 253 of the 38 laws of 1993, is amended to read as follows: 39 (13) provides that an owner is entitled to a rent increase where there 40 has been a substantial modification or increase of dwelling space or an 41 increase in the services, or installation of new equipment or improve- 42 ments or new furniture or furnishings provided in or to a tenant's hous- 43 ing accommodation, on written tenant consent to the rent increase. In 44 the case of a vacant housing accommodation, tenant consent shall not be 45 required. The permanent increase in the legal regulated rent for the 46 affected housing accommodation shall be one-fortieth, in the case of a 47 building with thirty-five or fewer housing accommodations, or one-sixti- 48 eth, in the case of a building with more than thirty-five housing accom- 49 modations where such permanent increase takes effect on or after Septem- 50 ber twenty-fourth, two thousand eleven, of the total cost incurred by 51 the landlord in providing such modification or increase in dwelling 52 space, services, furniture, furnishings or equipment, including the cost 53 of installation, but excluding finance charges. Provided further that an 54 owner who is entitled to a rent increase pursuant to this paragraph 55 shall not be entitled to a further rent increase based upon the instal-S. 5856 28 A. 8518 1 lation of similar equipment, or new furniture or furnishings within the 2 useful life of such new equipment, or new furniture or furnishings. 3 § 17. Intentionally omitted. 4 § 18. Paragraph 1 of subdivision d of section 6 of section 4 of chap- 5 ter 576 of the laws of 1974, constituting the emergency tenant 6 protection act of nineteen seventy-four, as added by chapter 253 of the 7 laws of 1993, is amended to read as follows: 8 (1) there has been a substantial modification or increase of dwelling 9 space or an increase in the services, or installation of new equipment 10 or improvements or new furniture or furnishings, provided in or to a 11 tenant's housing accommodation, on written tenant consent to the rent 12 increase. In the case of a vacant housing accommodation, tenant consent 13 shall not be required. The permanent increase in the legal regulated 14 rent for the affected housing accommodation shall be one-fortieth, in 15 the case of a building with thirty-five or fewer housing accommodations, 16 or one-sixtieth, in the case of a building with more than thirty-five 17 housing accommodations where such permanent increase takes effect on or 18 after September twenty-fourth, two thousand eleven, of the total cost 19 incurred by the landlord in providing such modification or increase in 20 dwelling space, services, furniture, furnishings or equipment, including 21 the cost of installation, but excluding finance charges. Provided 22 further [than] that an owner who is entitled to a rent increase pursuant 23 to this paragraph shall not be entitled to a further rent increase based 24 upon the installation of similar equipment, or new furniture or 25 furnishings within the useful life of such new equipment, or new furni- 26 ture or furnishings. 27 § 19. Intentionally omitted. 28 § 20. Intentionally omitted. 29 § 21. Intentionally omitted. 30 § 22. Intentionally omitted. 31 § 23. Intentionally omitted. 32 § 24. Intentionally omitted. 33 § 25. The second undesignated paragraph of paragraph (a) of subdivi- 34 sion 4 of section 4 of chapter 274 of the laws of 1946, constituting the 35 emergency housing rent control law, as amended by chapter 21 of the laws 36 of 1962, clause 5 as amended by chapter 253 of the laws of 1993, is 37 amended to read as follows: 38 No application for adjustment of maximum rent based upon a sales price 39 valuation shall be filed by the landlord under this subparagraph prior 40 to six months from the date of such sale of the property. In addition, 41 no adjustment ordered by the commission based upon such sales price 42 valuation shall be effective prior to one year from the date of such 43 sale. Where, however, the assessed valuation of the land exceeds four 44 times the assessed valuation of the buildings thereon, the commission 45 may determine a valuation of the property equal to five times the equal- 46 ized assessed valuation of the buildings, for the purposes of this 47 subparagraph. The commission may make a determination that the valu- 48 ation of the property is an amount different from such equalized 49 assessed valuation where there is a request for a reduction in such 50 assessed valuation currently pending; or where there has been a 51 reduction in the assessed valuation for the year next preceding the 52 effective date of the current assessed valuation in effect at the time 53 of the filing of the application. Net annual return shall be the amount 54 by which the earned income exceeds the operating expenses of the proper- 55 ty, excluding mortgage interest and amortization, and excluding allow- 56 ances for obsolescence and reserves, but including an allowance forS. 5856 29 A. 8518 1 depreciation of two per centum of the value of the buildings exclusive 2 of the land, or the amount shown for depreciation of the buildings in 3 the latest required federal income tax return, whichever is lower; 4 provided, however, that (1) no allowance for depreciation of the build- 5 ings shall be included where the buildings have been fully depreciated 6 for federal income tax purposes or on the books of the owner; or (2) the 7 landlord who owns no more than four rental units within the state has 8 not been fully compensated by increases in rental income sufficient to 9 offset unavoidable increases in property taxes, fuel, utilities, insur- 10 ance and repairs and maintenance, excluding mortgage interest and amor- 11 tization, and excluding allowances for depreciation, obsolescence and 12 reserves, which have occurred since the federal date determining the 13 maximum rent or the date the property was acquired by the present owner, 14 whichever is later; or (3) the landlord operates a hotel or rooming 15 house or owns a cooperative apartment and has not been fully compensated 16 by increases in rental income from the controlled housing accommodations 17 sufficient to offset unavoidable increases in property taxes and other 18 costs as are allocable to such controlled housing accommodations, 19 including costs of operation of such hotel or rooming house, but exclud- 20 ing mortgage interest and amortization, and excluding allowances for 21 depreciation, obsolescence and reserves, which have occurred since the 22 federal date determining the maximum rent or the date the landlord 23 commenced the operation of the property, whichever is later; or (4) the 24 landlord and tenant voluntarily enter into a valid written lease in good 25 faith with respect to any housing accommodation, which lease provides 26 for an increase in the maximum rent not in excess of fifteen per centum 27 and for a term of not less than two years, except that where such lease 28 provides for an increase in excess of fifteen per centum, the increase 29 shall be automatically reduced to fifteen per centum; or (5) the land- 30 lord and tenant by mutual voluntary written agreement agree to a 31 substantial increase or decrease in dwelling space or a change in the 32 services, furniture, furnishings or equipment provided in the housing 33 accommodations; provided that an owner shall be entitled to a rent 34 increase where there has been a substantial modification or increase of 35 dwelling space or an increase in the services, or installation of new 36 equipment or improvements or new furniture or furnishings provided in or 37 to a tenant's housing accommodation. The permanent increase in the maxi- 38 mum rent for the affected housing accommodation shall be one-fortieth, 39 in the case of a building with thirty-five or fewer housing accommo- 40 dations, or one-sixtieth, in the case of a building with more than thir- 41 ty-five housing accommodations where such permanent increase takes 42 effect on or after September twenty-fourth, two thousand eleven, of the 43 total cost incurred by the landlord in providing such modification or 44 increase in dwelling space, services, furniture, furnishings or equip- 45 ment, including the cost of installation, but excluding finance charges 46 provided further that an owner who is entitled to a rent increase pursu- 47 ant to this clause shall not be entitled to a further rent increase 48 based upon the installation of similar equipment, or new furniture or 49 furnishings within the useful life of such new equipment, or new furni- 50 ture or furnishings. The owner shall give written notice to the commis- 51 sion of any such adjustment pursuant to this clause; or (6) there has 52 been, since March first, nineteen hundred fifty, an increase in the 53 rental value of the housing accommodations as a result of a substantial 54 rehabilitation of the building or housing accommodation therein which 55 materially adds to the value of the property or appreciably prolongs its 56 life, excluding ordinary repairs, maintenance and replacements; or (7)S. 5856 30 A. 8518 1 there has been since March first, nineteen hundred fifty, a major capi- 2 tal improvement required for the operation, preservation or maintenance 3 of the structure; or (8) there has been since March first, nineteen 4 hundred fifty, in structures containing more than four housing accommo- 5 dations, other improvements made with the express consent of the tenants 6 in occupancy of at least seventy-five per centum of the housing accom- 7 modations, provided, however, that no adjustment granted hereunder shall 8 exceed fifteen per centum unless the tenants have agreed to a higher 9 percentage of increase, as herein provided; or (9) there has been, 10 since March first, nineteen hundred fifty, a subletting without written 11 consent from the landlord or an increase in the number of adult occu- 12 pants who are not members of the immediate family of the tenant, and the 13 landlord has not been compensated therefor by adjustment of the maximum 14 rent by lease or order of the commission or pursuant to the federal act; 15 or (10) the presence of unique or peculiar circumstances materially 16 affecting the maximum rent has resulted in a maximum rent which is 17 substantially lower than the rents generally prevailing in the same area 18 for substantially similar housing accommodations. 19 § 26. Intentionally omitted. 20 § 27. Intentionally omitted. 21 § 28. Intentionally omitted. 22 § 29. Paragraph 12 of subdivision a of section 5 of section 4 of chap- 23 ter 576 of the laws of 1974, constituting the emergency tenant 24 protection act of nineteen seventy-four, as amended by chapter 116 of 25 the laws of 1997, is amended to read as follows: 26 (12) upon issuance of an order by the division, housing accommodations 27 which are: (1) occupied by persons who have a total annual income [in28excess of one hundred seventy-five thousand dollars per annum in each of29the two preceding calendar years, as defined in and subject to the limi-30tations and process set forth in section five-a of this act] as defined 31 in and subject to the limitations and process set forth in section 32 five-a of this act in excess of the deregulation income threshold, as 33 defined in section five-a of this act, in each of the two preceding 34 calendar years; and (2) have a legal regulated rent [of two thousand35dollars or more per month] that equals or exceeds the deregulation rent 36 threshold, as defined in section five-a of this act. Provided however, 37 that this exclusion shall not apply to housing accommodations which 38 became or become subject to this act (a) by virtue of receiving tax 39 benefits pursuant to section four hundred twenty-one-a or four hundred 40 eighty-nine of the real property tax law, except as otherwise provided 41 in subparagraph (i) of paragraph (f) of subdivision two of section four 42 hundred twenty-one-a of the real property tax law, or (b) by virtue of 43 article seven-C of the multiple dwelling law. 44 § 30. Section 5-a of section 4 of chapter 576 of the laws of 1974, 45 constituting the emergency tenant protection act of nineteen seventy- 46 four, as added by chapter 253 of the laws of 1993, subdivision (b) and 47 paragraphs 1 and 2 of subdivision (c) as amended and subdivision (e) as 48 added by chapter 116 of the laws of 1997, is amended to read as follows: 49 § 5-a. High income rent [decontrol] deregulation. (a) 1. For purposes 50 of this section, annual income shall mean the federal adjusted gross 51 income as reported on the New York state income tax return. Total annual 52 income means the sum of the annual incomes of all persons whose names 53 are recited as the tenant or co-tenant on a lease who occupy the housing 54 accommodation and all other persons that occupy the housing accommo- 55 dation as their primary residence on other than a temporary basis, 56 excluding bona fide employees of such occupants residing therein inS. 5856 31 A. 8518 1 connection with such employment and excluding bona fide subtenants in 2 occupancy pursuant to the provisions of section two hundred twenty-six-b 3 of the real property law. In the case where a housing accommodation is 4 sublet, the annual income of the tenant or co-tenant recited on the 5 lease who will reoccupy the housing accommodation upon the expiration of 6 the sublease shall be considered. 7 2. Deregulation income threshold means total annual income equal to 8 one hundred seventy-five thousand dollars in each of the two preceding 9 calendar years for proceedings commenced before July first, two thousand 10 eleven. For proceedings commenced on or after July first, two thousand 11 eleven, the deregulation income threshold means the total annual income 12 equal to two hundred thousand dollars in each of the two preceding 13 calendar years. 14 3. Deregulation rent threshold means two thousand dollars for 15 proceedings commenced before July first, two thousand eleven. For 16 proceedings commenced on or after July first, two thousand eleven, the 17 deregulation rent threshold means two thousand five hundred dollars. 18 (b) On or before the first day of May in each calendar year, the owner 19 of each housing accommodation for which the legal regulated monthly rent 20 [is two thousand dollars or more per month] equals or exceeds the dereg- 21 ulation rent threshold may provide the tenant or tenants residing there- 22 in with an income certification form prepared by the division of housing 23 and community renewal on which such tenant or tenants shall identify all 24 persons referred to in subdivision (a) of this section and shall certify 25 whether the total annual income is in excess of [one hundred seventy-26five thousand dollars in each of the two preceding calendar years] the 27 deregulation income threshold in each of the two preceding calendar 28 years. Such income certification form shall state that the income level 29 certified to by the tenant may be subject to verification by the depart- 30 ment of taxation and finance pursuant to section one hundred seventy- 31 one-b of the tax law, and shall not require disclosure of any informa- 32 tion other than whether the aforementioned threshold has been exceeded. 33 Such income certification form shall clearly state that: (i) only 34 tenants residing in housing accommodations which had a legal regulated 35 monthly rent [of two thousand dollars or more per month] that equals or 36 exceeds the deregulation rent threshold are required to complete the 37 certification form; (ii) that tenants have protections available to them 38 which are designed to prevent harassment; (iii) that tenants are not 39 required to provide any information regarding their income except that 40 which is requested on the form and may contain such other information 41 the division deems appropriate. The tenant or tenants shall return the 42 completed certification to the owner within thirty days after service 43 upon the tenant or tenants. In the event that the total annual income as 44 certified is in excess of [one hundred seventy-five thousand dollars in45each such year] the deregulation income threshold in each of the two 46 preceding calendar years, the owner may file the certification with the 47 state division of housing and community renewal on or before June thir- 48 tieth of such year. Upon filing such certification with the division, 49 the division shall, within thirty days after the filing, issue an order 50 providing that such housing accommodation shall not be subject to the 51 provisions of this act upon the expiration of the existing lease. A copy 52 of such order shall be mailed by regular and certified mail, return 53 receipt requested, to the tenant or tenants and a copy thereof shall be 54 mailed to the owner. 55 (c) 1. In the event that the tenant or tenants either fail to return 56 the completed certification to the owner on or before the date requiredS. 5856 32 A. 8518 1 by subdivision (b) of this section or the owner disputes the certif- 2 ication returned by the tenant or tenants, the owner may, on or before 3 June thirtieth of such year, petition the state division of housing and 4 community renewal to verify, pursuant to section one hundred seventy- 5 one-b of the tax law, whether the total annual income exceeds [one6hundred seventy-five thousand dollars in each of the two preceding7calendar years] the deregulation income threshold in each of the two 8 preceding calendar years. Within twenty days after the filing of such 9 request with the division, the division shall notify the tenant or 10 tenants that such tenant or tenants named on the lease must provide the 11 division with such information as the division and the department of 12 taxation and finance shall require to verify whether the total annual 13 income exceeds [one hundred seventy-five thousand dollars in each such14year] the deregulation income threshold in each of the two preceding 15 calendar years. The division's notification shall require the tenant or 16 tenants to provide the information to the division within sixty days of 17 service upon such tenant or tenants and shall include a warning in bold 18 faced type that failure to respond will result in an order being issued 19 by the division providing that such housing accommodations shall not be 20 subject to the provisions of this act. 21 2. If the department of taxation and finance determines that the total 22 annual income is in excess of [one hundred seventy-five thousand dollars23in each of the two preceding calendar years] the deregulation income 24 threshold in each of the two preceding calendar years, the division 25 shall, on or before November fifteenth of such year, notify the owner 26 and tenants of the results of such verification. Both the owner and the 27 tenants shall have thirty days within which to comment on such verifica- 28 tion results. Within forty-five days after the expiration of the 29 comment period, the division shall, where appropriate, issue an order 30 providing that such housing accommodation shall not be subject to the 31 provisions of this act upon expiration of the existing lease. A copy of 32 such order shall be mailed by regular and certified mail, return receipt 33 requested, to the tenant or tenants and a copy thereof shall be sent to 34 the owner. 35 3. In the event the tenant or tenants fail to provide the information 36 required pursuant to paragraph one of this subdivision, the division 37 shall issue, on or before December first of such year, an order provid- 38 ing that such housing accommodation shall not be subject to the 39 provisions of this act upon the expiration [or] of the current lease. A 40 copy of such order shall be mailed by regular and certified mail, return 41 receipt requested, to the tenant or tenants and a copy thereof shall be 42 sent to the owner. 43 4. The provisions of the state freedom of information act shall not 44 apply to any income information obtained by the division pursuant to 45 this section. 46 (d) This section shall apply only to paragraph twelve of subdivision a 47 of section five of this act. 48 (e) Upon receipt of such order of [decontrol] deregulation pursuant to 49 this section, an owner shall offer the housing accommodation subject to 50 such order to the tenant at a rent not in excess of the market rent, 51 which for the purposes of this section means a rent obtainable in an 52 arm's length transaction. Such rental offer shall be made by the owner 53 in writing to the tenant by certified and regular mail and shall inform 54 the tenant that such offer must be accepted in writing within ten days 55 of receipt. The tenant shall respond within ten days after receipt of 56 such offer. If the tenant declines the offer or fails to respond withinS. 5856 33 A. 8518 1 such period, the owner may commence an action or proceeding for the 2 eviction of such tenant. 3 § 31. Paragraph (m) of subdivision 2 of section 2 of chapter 274 of 4 the laws of 1946, constituting the emergency housing rent control law, 5 as amended by chapter 116 of the laws of 1997, is amended to read as 6 follows: 7 (m) upon the issuance of an order of [decontrol] deregulation by the 8 division, housing accommodations which: (1) are occupied by persons who 9 have a total annual income, as defined in and subject to the limitations 10 and process set forth in section two-a of this law, in excess of [one11hundred seventy-five thousand dollars in each of the two preceding12calendar years, as defined in and subject to the limitations and process13set forth in section two-a of this law] the deregulation income thresh- 14 old as defined in section two-a of this law in each of the two preceding 15 calendar years; and (2) have a maximum rent [of two thousand dollars or16more per month] that equals or exceeds the deregulation rent threshold 17 as defined in section two-a of this law. 18 § 32. Section 2-a of chapter 274 of the laws of 1946, constituting the 19 emergency housing rent control law, as added by chapter 253 of the laws 20 of 1993, subdivision (b) and paragraphs 1 and 2 of subdivision (c) as 21 amended and subdivision (e) as added by chapter 116 of the laws of 1997, 22 is amended to read as follows: 23 § 2-a. (a) 1. For purposes of this section, annual income shall mean 24 the federal adjusted gross income as reported on the New York state 25 income tax return. Total annual income means the sum of the annual 26 incomes of all persons who occupy the housing accommodation as their 27 primary residence on other than a temporary basis, excluding bona fide 28 employees of such occupants residing therein in connection with such 29 employment and excluding bona fide subtenants in occupancy pursuant to 30 the provisions of section two hundred twenty-six-b of the real property 31 law. In the case where a housing accommodation is sublet, the annual 32 income of the sublessor shall be considered. 33 2. Deregulation income threshold means total annual income equal to 34 one hundred seventy-five thousand dollars in each of the two preceding 35 calendar years for proceedings commenced before July first, two thousand 36 eleven. For proceedings commenced on or after July first, two thousand 37 eleven, the deregulation income threshold means the total annual income 38 equal to two hundred thousand dollars in each of the two preceding 39 calendar years. 40 3. Deregulation rent threshold means two thousand dollars for 41 proceedings commenced prior to July first, two thousand eleven. For 42 proceedings commenced on or after July first, two thousand eleven, the 43 deregulation rent threshold means two thousand five hundred dollars. 44 (b) On or before the first day of May in each calendar year, the owner 45 of each housing accommodation for which the maximum monthly rent [is two46thousand dollars or more per month] equals or exceeds the deregulation 47 rent threshold may provide the tenant or tenants residing therein with 48 an income certification form prepared by the division of housing and 49 community renewal on which such tenant or tenants shall identify all 50 persons referred to in subdivision (a) of this section and shall certify 51 whether the total annual income is in excess of [one hundred seventy-52five thousand dollars in each of the two preceding calendar years] the 53 deregulation income threshold in each of the two preceding calendar 54 years. Such income certification form shall state that the income level 55 certified to by the tenant may be subject to verification by the depart- 56 ment of taxation and finance pursuant to section one hundred seventy-S. 5856 34 A. 8518 1 one-b of the tax law and shall not require disclosure of any income 2 information other than whether the aforementioned threshold has been 3 exceeded. Such income certification form shall clearly state that: (i) 4 only tenants residing in housing accommodations which had a maximum 5 monthly rent equal to or in excess of [two thousand dollars or more per6month] the deregulation rent threshold are required to complete the 7 certification form; (ii) that tenants have protections available to them 8 which are designed to prevent harassment; (iii) that tenants are not 9 required to provide any information regarding their income except that 10 which is requested on the form and may contain such other information 11 the division deems appropriate. The tenant or tenants shall return the 12 completed certification to the owner within thirty days after service 13 upon the tenant or tenants. In the event that the total annual income as 14 certified is in excess of [one hundred seventy-five thousand dollars in15each such year] the deregulation income threshold in each of the two 16 preceding calendar years, the owner may file the certification with the 17 state division of housing and community renewal on or before June thir- 18 tieth of such year. Upon filing such certification with the division, 19 the division shall, within thirty days after the filing, issue an order 20 of [decontrol] deregulation providing that such housing accommodations 21 shall not be subject to the provisions of this law as of the first day 22 of June in the year next succeeding the filing of the certification by 23 the owner. A copy of such order shall be mailed by regular and certified 24 mail, return receipt requested, to the tenant or tenants and a copy 25 thereof shall be mailed to the owner. 26 (c) 1. In the event that the tenant or tenants either fail to return 27 the completed certification to the owner on or before the date required 28 by subdivision (b) of this section or the owner disputes the certif- 29 ication returned by the tenant or tenants, the owner may, on or before 30 June thirtieth of such year, petition the state division of housing and 31 community renewal to verify, pursuant to section one hundred seventy- 32 one-b of the tax law, whether the total annual income exceeds [one33hundred seventy-five thousand dollars in each of the two preceding34calendar years] the deregulation income threshold in each of the two 35 preceding calendar years. Within twenty days after the filing of such 36 request with the division, the division shall notify the tenant or 37 tenants that such tenant or tenants must provide the division with such 38 information as the division and the department of taxation and finance 39 shall require to verify whether the total annual income exceeds [one40hundred seventy-five thousand dollars in each such year] the deregu- 41 lation income threshold in each of the two preceding calendar years. 42 The division's notification shall require the tenant or tenants to 43 provide the information to the division within sixty days of service 44 upon such tenant or tenants and shall include a warning in bold faced 45 type that failure to respond will result in an order of [decontrol] 46 deregulation being issued by the division for such housing accommo- 47 dation. 48 2. If the department of taxation and finance determines that the total 49 annual income is in excess of [one hundred seventy-five thousand dollars50in each of the two preceding calendar years] the deregulation income 51 threshold in each of the two preceding calendar years, the division 52 shall, on or before November fifteenth of such year, notify the owner 53 and tenants of the results of such verification. Both the owner and the 54 tenants shall have thirty days within which to comment on such verifica- 55 tion results. Within forty-five days after the expiration of the 56 comment period, the division shall, where appropriate, issue an order ofS. 5856 35 A. 8518 1 [decontrol] deregulation providing that such housing accommodation shall 2 not be subject to the provisions of this law as of the first day of 3 March in the year next succeeding the filing of the owner's petition 4 with the division. A copy of such order shall be mailed by regular and 5 certified mail, return receipt requested, to the tenant or tenants and a 6 copy thereof shall be sent to the owner. 7 3. In the event the tenant or tenants fail to provide the information 8 required pursuant to paragraph one of this subdivision, the division 9 shall issue, on or before December first of such year, an order of 10 [decontrol] deregulation providing that such housing accommodation shall 11 not be subject to the provisions of this law as of the first day of 12 March in the year next succeeding the last day on which the tenant or 13 tenants were required to provide the information required by such para- 14 graph. A copy of such order shall be mailed by regular and certified 15 mail, return receipt requested, to the tenant or tenants and a copy 16 thereof shall be sent to the owner. 17 4. The provisions of the state freedom of information act shall not 18 apply to any income information obtained by the division pursuant to 19 this section. 20 (d) This section shall apply only to paragraph (m) of subdivision two 21 of section two of this law. 22 (e) Upon receipt of such order of [decontrol] deregulation pursuant to 23 this section, an owner shall offer the housing accommodation subject to 24 such order to the tenant at a rent not in excess of the market rent, 25 which for the purposes of this section means a rent obtainable in an 26 arm's length transaction. Such rental offer shall be made by the owner 27 in writing to the tenant by certified and regular mail and shall inform 28 the tenant that such offer must be accepted in writing within ten days 29 of receipt. The tenant shall respond within ten days after receipt of 30 such offer. If the tenant declines the offer or fails to respond within 31 such period, the owner may commence an action or proceeding for the 32 eviction of such tenant. 33 § 33. Subparagraph (j) of paragraph 2 of subdivision e of section 34 26-403 of the administrative code of the city of New York, as amended by 35 chapter 116 of the laws of 1997, is amended to read as follows: 36 (j) Upon the issuance of an order of [decontrol] deregulation by the 37 division, housing accommodations which: (1) are occupied by persons who 38 have a total annual income, as defined in and subject to the limitations 39 and process set forth in section 26-403.1 of this chapter, in excess of 40 [one hundred seventy-five thousand dollars per annum] the deregulation 41 income threshold, as defined in section 26-403.1 of this chapter, in 42 each of the two preceding calendar years[, as defined in and subject to43the limitations and process set forth in section 26-403.1 of this chap-44ter]; and (2) have a maximum rent [of two thousand dollars or more per45month] that equals or exceeds the deregulation rent threshold, as 46 defined in section 26-403.1 of this chapter. Provided however, that 47 this exclusion shall not apply to housing accommodations which became or 48 become subject to this law by virtue of receiving tax benefits pursuant 49 to section four hundred eighty-nine of the real property tax law. 50 § 34. Section 26-403.1 of the administrative code of the city of New 51 York, as added by chapter 253 of the laws of 1993, subdivision (b) and 52 paragraphs 1 and 2 of subdivision (c) as amended and subdivision (e) as 53 added by chapter 116 of the laws of 1997, is amended to read as follows: 54 § 26-403.1 High income rent [decontrol] deregulation. (a) 1. For 55 purposes of this section, annual income shall mean the federal adjusted 56 gross income as reported on the New York state income tax return. TotalS. 5856 36 A. 8518 1 annual income means the sum of the annual incomes of all persons who 2 occupy the housing accommodation as their primary residence other than 3 on a temporary basis, excluding bona fide employees of such occupants 4 residing therein in connection with such employment and excluding bona 5 fide subtenants in occupancy pursuant to the provisions of section two 6 hundred twenty-six-b of the real property law. In the case where a hous- 7 ing accommodation is sublet, the annual income of the sublessor shall be 8 considered. 9 2. Deregulation income threshold means total annual income equal to 10 one hundred seventy-five thousand dollars in each of the two preceding 11 calendar years for proceedings commenced prior to July first, two thou- 12 sand eleven. For proceedings commenced on or after July first, two 13 thousand eleven, the deregulation income threshold means the total annu- 14 al income equal to two hundred thousand dollars in each of the two 15 preceding calendar years. 16 3. Deregulation rent threshold means two thousand dollars for 17 proceedings commenced before July first, two thousand eleven. For 18 proceedings commenced on or after July first, two thousand eleven, the 19 deregulation rent threshold means two thousand five hundred dollars. 20 (b) On or before the first day of May in each calendar year, the owner 21 of each housing accommodation for which the maximum rent [is two thou-22sand dollars or more per month] equals or exceeds the deregulation rent 23 threshold may provide the tenant or tenants residing therein with an 24 income certification form prepared by the division of housing and commu- 25 nity renewal on which such tenant or tenants shall identify all persons 26 referred to in subdivision (a) of this section and shall certify whether 27 the total annual income is in excess of [one hundred seventy-five thou-28sand dollars in each of the two preceding calendar years] the deregu- 29 lation income threshold in each of the two preceding calendar years. 30 Such income certification form shall state that the income level certi- 31 fied to by the tenant may be subject to verification by the department 32 of taxation and finance pursuant to section one hundred seventy-one-b of 33 the tax law and shall not require disclosure of any income information 34 other than whether the aforementioned threshold has been exceeded. Such 35 income certification form shall clearly state that: (i) only tenants 36 residing in housing accommodations which have a maximum monthly rent [of37two thousand dollars or more per month] that equals or exceeds the 38 deregulation rent threshold are required to complete the certification 39 form; (ii) that tenants have protections available to them which are 40 designed to prevent harassment; (iii) that tenants are not required to 41 provide any information regarding their income except that which is 42 requested on the form and may contain such other information the divi- 43 sion deems appropriate. The tenant or tenants shall return the completed 44 certification to the owner within thirty days after service upon the 45 tenant or tenants. In the event that the total annual income as certi- 46 fied is in excess of [one hundred seventy-five thousand dollars in each47such year] the deregulation income threshold in each of the two preced- 48 ing calendar years, the owner may file the certification with the state 49 division of housing and community renewal on or before June thirtieth of 50 such year. Upon filing such certification with the division, the divi- 51 sion shall, within thirty days after the filing, issue an order of 52 [decontrol] deregulation providing that such housing accommodations 53 shall not be subject to the provisions of this law as of the first day 54 of June in the year next succeeding the filing of the certification by 55 the owner. A copy of such order shall be mailed by regular and certifiedS. 5856 37 A. 8518 1 mail, return receipt requested, to the tenant or tenants and a copy 2 thereof shall be mailed to the owner. 3 (c) 1. In the event that the tenant or tenants either fail to return 4 the completed certification to the owner on or before the date required 5 by subdivision (b) of this section or the owner disputes the certif- 6 ication returned by the tenant or tenants, the owner may, on or before 7 June thirtieth of such year, petition the state division of housing and 8 community renewal to verify, pursuant to section one hundred seventy- 9 one-b of the tax law, whether the total annual income exceeds [one10hundred seventy-five thousand dollars in each of the two preceding11calendar years] the deregulation income threshold in each of the two 12 preceding calendar years. Within twenty days after the filing of such 13 request with the division, the division shall notify the tenant or 14 tenants that such tenant or tenants must provide the division with such 15 information as the division and the department of taxation and finance 16 shall require to verify whether the total annual income exceeds [one17hundred seventy-five thousand dollars in each such year] the deregu- 18 lation income threshold in each of the two preceding calendar years. 19 The division's notification shall require the tenant or tenants to 20 provide the information to the division within sixty days of service 21 upon such tenant or tenants and shall include a warning in bold faced 22 type that failure to respond will result in an order of [decontrol] 23 deregulation being issued by the division for such housing accommo- 24 dation. 25 2. If the department of taxation and finance determines that the total 26 annual income is in excess of [one hundred seventy-five thousand dollars27in each of the two preceding calendar years] the deregulation income 28 threshold in each of the two preceding calendar years, the division 29 shall, on or before November fifteenth of such year, notify the owner 30 and tenants of the results of such verification. Both the owner and the 31 tenants shall have thirty days within which to comment on such verifica- 32 tion results. Within forty-five days after the expiration of the 33 comment period, the division shall, where appropriate, issue an order of 34 [decontrol] deregulation providing that such housing accommodation shall 35 not be subject to the provisions of this law as of the first day of 36 March in the year next succeeding the filing of the owner's petition 37 with the division. A copy of such order shall be mailed by regular and 38 certified mail, return receipt requested, to the tenant or tenants and a 39 copy thereof shall be sent to the owner. 40 3. In the event the tenant or tenants fail to provide the information 41 required pursuant to paragraph one of this subdivision, the division 42 shall issue, on or before December first of such year, an order of 43 [decontrol] deregulation providing that such housing accommodation shall 44 not be subject to the provisions of this law as of the first day of 45 March in the year next succeeding the last day on which the tenant or 46 tenants were required to provide the information required by such para- 47 graph. A copy of such order shall be mailed by regular and certified 48 mail, return receipt requested, to the tenant or tenants and a copy 49 thereof shall be sent to the owner. 50 4. The provisions of the state freedom of information act shall not 51 apply to any income information obtained by the division pursuant to 52 this section. 53 (d) This section shall apply only to subparagraph (j) of paragraph two 54 of subdivision e of section 26-403 of this [code] chapter. 55 (e) Upon receipt of such order of [decontrol] deregulation pursuant to 56 this section, an owner shall offer the housing accommodation subject toS. 5856 38 A. 8518 1 such order to the tenant at a rent not in excess of the market rent, 2 which for the purposes of this section means a rent obtainable in an 3 arm's length transaction. Such rental offer shall be made by the owner 4 in writing to the tenant by certified and regular mail and shall inform 5 the tenant that such offer must be accepted in writing within ten days 6 of receipt. The tenant shall respond within ten days after receipt of 7 such offer. If the tenant declines the offer or fails to respond within 8 such period, the owner may commence an action or proceeding for the 9 eviction of such tenant. 10 § 35. Section 26-504.1 of the administrative code of the city of New 11 York, as amended by chapter 116 of the laws of 1997, is amended to read 12 as follows: 13 § 26-504.1 Exclusion of accommodations of high income renters. Upon 14 the issuance of an order by the division, "housing accommodations" shall 15 not include housing accommodations which: (1) are occupied by persons 16 who have a total annual income, as defined in and subject to the limita- 17 tions and process set forth in section 26-504.3 of this chapter, in 18 excess of [one hundred seventy-five thousand dollars per annum] the 19 deregulation income threshold, as defined in section 26-504.3 of this 20 chapter, for each of the two preceding calendar years[, as defined in21and subject to the limitations and process set forth in section 26-504.322of this chapter]; and (2) have a legal regulated monthly rent [of two23thousand dollars or more per month] that equals or exceeds the deregu- 24 lation rent threshold, as defined in section 26-504.3 of this chapter. 25 Provided, however, that this exclusion shall not apply to housing accom- 26 modations which became or become subject to this law (a) by virtue of 27 receiving tax benefits pursuant to section four hundred twenty-one-a or 28 four hundred eighty-nine of the real property tax law, except as other- 29 wise provided in subparagraph (i) of paragraph (f) of subdivision two of 30 section four hundred twenty-one-a of the real property tax law, or (b) 31 by virtue of article seven-C of the multiple dwelling law. 32 § 36. Section 26-504.3 of the administrative code of the city of New 33 York, as added by chapter 253 of the laws of 1993, subdivision (b) and 34 paragraphs 1 and 2 of subdivision (c) as amended and subdivision (e) as 35 added by chapter 116 of the laws of 1997, is amended to read as follows: 36 § 26-504.3 High income rent [decontrol] deregulation. (a) 1. For 37 purposes of this section, annual income shall mean the federal adjusted 38 gross income as reported on the New York state income tax return. Total 39 annual income means the sum of the annual incomes of all persons whose 40 names are recited as the tenant or co-tenant on a lease who occupy the 41 housing accommodation and all other persons that occupy the housing 42 accommodation as their primary residence on other than a temporary 43 basis, excluding bona fide employees of such occupants residing therein 44 in connection with such employment and excluding bona fide subtenants in 45 occupancy pursuant to the provisions of section two hundred twenty-six-b 46 of the real property law. In the case where a housing accommodation is 47 sublet, the annual income of the tenant or co-tenant recited on the 48 lease who will reoccupy the housing accommodation upon the expiration of 49 the sublease shall be considered. 50 2. Deregulation income threshold means total annual income equal to 51 one hundred seventy-five thousand dollars in each of the two preceding 52 calendar years for proceedings commenced before July first, two thousand 53 eleven. For proceedings commenced on or after July first, two thousand 54 eleven, the deregulation income threshold means the total annual income 55 equal to two hundred thousand dollars in each of the two preceding 56 calendar years.S. 5856 39 A. 8518 1 3. Deregulation rent threshold means two thousand dollars for 2 proceedings commenced before July first, two thousand eleven. For 3 proceedings commenced on or after July first, two thousand eleven, the 4 deregulation rent threshold means two thousand five hundred dollars. 5 (b) On or before the first day of May in each calendar year, the owner 6 of each housing accommodation for which the legal regulated rent [is two7thousand dollars or more per month] equals or exceeds the deregulation 8 rent threshold may provide the tenant or tenants residing therein with 9 an income certification form prepared by the division of housing and 10 community renewal on which such tenant or tenants shall identify all 11 persons referred to in subdivision (a) of this section and shall certify 12 whether the total annual income is in excess of [one hundred seventy-13five thousand dollars in each of the two preceding calendar years] the 14 deregulation income threshold in each of the two preceding calendar 15 years. Such income certification form shall state that the income level 16 certified to by the tenant may be subject to verification by the depart- 17 ment of taxation and finance pursuant to section one hundred seventy- 18 one-b of the tax law and shall not require disclosure of any income 19 information other than whether the aforementioned threshold has been 20 exceeded. Such income certification form shall clearly state that: (i) 21 only tenants residing in housing accommodations which have a legal regu- 22 lated monthly rent [of two thousand dollars or more per month], that 23 equals or exceeds the deregulation rent threshold are required to 24 complete the certification form; (ii) that tenants have protections 25 available to them which are designed to prevent harassment; (iii) that 26 tenants are not required to provide any information regarding their 27 income except that which is requested on the form and may contain such 28 other information the division deems appropriate. The tenant or tenants 29 shall return the completed certification to the owner within thirty days 30 after service upon the tenant or tenants. In the event that the total 31 annual income as certified is in excess of [one hundred seventy-five32thousand dollars in each such year] the deregulation income threshold in 33 each of the two preceding calendar years, the owner may file the certif- 34 ication with the state division of housing and community renewal on or 35 before June thirtieth of such year. Upon filing such certification with 36 the division, the division shall, within thirty days after the filing, 37 issue an order providing that such housing accommodation shall not be 38 subject to the provisions of this act upon the expiration of the exist- 39 ing lease. A copy of such order shall be mailed by regular and certified 40 mail, return receipt requested, to the tenant or tenants and a copy 41 thereof shall be mailed to the owner. 42 (c) 1. In the event that the tenant or tenants either fail to return 43 the completed certification to the owner on or before the date required 44 by subdivision (b) of this section or the owner disputes the certif- 45 ication returned by the tenant or tenants, the owner may, on or before 46 June thirtieth of such year, petition the state division of housing and 47 community renewal to verify, pursuant to section one hundred seventy- 48 one-b of the tax law, whether the total annual income exceeds [one49hundred seventy-five thousand dollars in each of the two preceding50calendar years] the deregulation income threshold in each of the two 51 preceding calendar years. Within twenty days after the filing of such 52 request with the division, the division shall notify the tenant or 53 tenants named on the lease that such tenant or tenants must provide the 54 division with such information as the division and the department of 55 taxation and finance shall require to verify whether the total annual 56 income exceeds [one hundred seventy-five thousand dollars in each suchS. 5856 40 A. 8518 1year] the deregulation income threshold in each of the two preceding 2 calendar years. The division's notification shall require the tenant or 3 tenants to provide the information to the division within sixty days of 4 service upon such tenant or tenants and shall include a warning in bold 5 faced type that failure to respond will result in an order being issued 6 by the division providing that such housing accommodation shall not be 7 subject to the provisions of this law. 8 2. If the department of taxation and finance determines that the total 9 annual income is in excess of [one hundred seventy-five thousand dollars10in each of the two preceding calendar years] the deregulation income 11 threshold in each of the two preceding calendar years, the division 12 shall, on or before November fifteenth of such year, notify the owner 13 and tenants of the results of such verification. Both the owner and the 14 tenants shall have thirty days within which to comment on such verifica- 15 tion results. Within forty-five days after the expiration of the 16 comment period, the division shall, where appropriate, issue an order 17 providing that such housing accommodation shall not be subject to the 18 provisions of this law upon the expiration of the existing lease. A copy 19 of such order shall be mailed by regular and certified mail, return 20 receipt requested, to the tenant or tenants and a copy thereof shall be 21 sent to the owner. 22 3. In the event the tenant or tenants fail to provide the information 23 required pursuant to paragraph one of this subdivision, the division 24 shall issue, on or before December first of such year, an order provid- 25 ing that such housing accommodation shall not be subject to the 26 provisions of this law upon the expiration of the current lease. A copy 27 of such order shall be mailed by regular and certified mail, return 28 receipt requested, to the tenant or tenants and a copy thereof shall be 29 sent to the owner. 30 4. The provisions of the state freedom of information act shall not 31 apply to any income information obtained by the division pursuant to 32 this section. 33 (d) This section shall apply only to section 26-504.1 of this [code] 34 chapter. 35 (e) Upon receipt of such order of [decontrol] deregulation pursuant to 36 this section, an owner shall offer the housing accommodation subject to 37 such order to the tenant at a rent not in excess of the market rent, 38 which for the purposes of this section means a rent obtainable in an 39 arm's length transaction. Such rental offer shall be made by the owner 40 in writing to the tenant by certified and regular mail and shall inform 41 the tenant that such offer must be accepted in writing within ten days 42 of receipt. The tenant shall respond within ten days after receipt of 43 such offer. If the tenant declines the offer or fails to respond within 44 such period, the owner may commence an action or proceeding for the 45 eviction of such tenant. 46 § 37. Paragraph (b) of subdivision 3 of section 171-b of the tax law, 47 as amended by chapter 116 of the laws of 1997, is amended to read as 48 follows: 49 (b) The department, when requested by the division of housing and 50 community renewal, shall verify the total annual income of all persons 51 residing in housing accommodations as their primary residence subject to 52 rent regulation and shall notify the commissioner of the division of 53 housing and community renewal as may be appropriate whether the total 54 annual income exceeds [one hundred seventy-five thousand dollars per55annum in each of the two preceding calendar years] the applicable dereg- 56 ulation income threshold in each of the two preceding calendar years.S. 5856 41 A. 8518 1 No other information regarding the annual income of such persons shall 2 be provided. 3 § 38. Subparagraph (i) of paragraph (a) of subdivision 2 of section 4 421-a of the real property tax law, as amended by chapter 288 of the 5 laws of 1985, is amended to read as follows: 6 (i) Within a city having a population of one million or more, new 7 multiple dwellings, except hotels, shall be exempt from taxation for 8 local purposes, other than assessments for local improvements, for the 9 tax year or years immediately following taxable status dates occurring 10 subsequent to the commencement and prior to the completion of 11 construction, but not to exceed three such tax years, except for new 12 multiple dwellings the construction of which commenced between January 13 first, two thousand seven, and June thirtieth, two thousand nine, shall 14 have an additional thirty-six months to complete construction and shall 15 be eligible for full exemption from taxation for the first three years 16 of the period of construction; any eligible project that seeks to 17 utilize the six-year period of construction authorized by this section 18 must apply for a preliminary certificate of eligibility within one year 19 of the effective date of the rent act of 2011, provided, however that 20 such multiple dwellings shall be eligible for a maximum of three years 21 of benefits during the construction period, and shall continue to be 22 exempt from such taxation in tax years immediately following the taxable 23 status date first occurring after the expiration of the exemption herein 24 conferred during construction so long as used at the completion of 25 construction for dwelling purposes for a period not to exceed ten years 26 in the aggregate after the taxable status date immediately following the 27 completion thereof, as follows: 28 (A) except as otherwise provided herein there shall be full exemption 29 from taxation during the period of construction or the period of three 30 years immediately following commencement of construction, whichever 31 expires sooner, except for new multiple dwellings the construction of 32 which commenced between January first, two thousand seven, and June 33 thirtieth, two thousand nine, shall have an additional thirty-six months 34 to complete construction and shall be eligible for full exemption from 35 taxation for the first three years of the period of construction; any 36 eligible project that seeks to utilize the six-year period of 37 construction authorized by this section must apply for a preliminary 38 certificate of eligibility within one year of the effective date of the 39 rent act of 2011, provided, however that such multiple dwellings shall 40 be eligible for a maximum of three years of benefits during the 41 construction period, and for two years following such period; 42 (B) followed by two years of exemption from eighty per cent of such 43 taxation; 44 (C) followed by two years of exemption from sixty per cent of such 45 taxation; 46 (D) followed by two years of exemption from forty per cent of such 47 taxation; 48 (E) followed by two years of exemption from twenty per cent of such 49 taxation; 50 The following table shall illustrate the computation of the tax 51 exemption: 52 CONSTRUCTION OF CERTAIN MULTIPLE DWELLINGS 53 Exemption 54 During Construction (maximum three years); 100%S. 5856 42 A. 8518 1 except construction commenced between January 2 first, two thousand seven and June 3 thirtieth, two thousand nine (maximum 4 three years) 5 Following completion of work 6 Year: 7 1 100% 8 2 100 9 3 80 10 4 80 11 5 60 12 6 60 13 7 40 14 8 40 15 9 20 16 10 20 17 § 39. Clause (A) of subparagraph (ii) of paragraph (a) of subdivision 18 2 of section 421-a of the real property tax law, as amended by chapter 19 288 of the laws of 1985, is amended to read as follows: 20 (A) Within a city having a population of one million or more the local 21 housing agency may adopt rules and regulations providing that except in 22 areas excluded by local law new multiple dwellings, except hotels, shall 23 be exempt from taxation for local purposes, other than assessments for 24 local improvements, for the tax year or years immediately following 25 taxable status dates occurring subsequent to the commencement and prior 26 to the completion of construction, but not to exceed three such tax 27 years, except for new multiple dwellings the construction of which 28 commenced between January first, two thousand seven, and June thirtieth, 29 two thousand nine, shall have an additional thirty-six months to 30 complete construction and shall be eligible for full exemption from 31 taxation for the first three years of the period of construction; any 32 eligible project that seeks to utilize the six-year period of 33 construction authorized by this section must apply for a preliminary 34 certificate of eligibility within one year of the effective date of the 35 rent act of 2011, provided, however that such multiple dwellings shall 36 be eligible for a maximum of three years of benefits during the 37 construction period, and shall continue to be exempt from such taxation 38 in tax years immediately following the taxable status date first occur- 39 ring after the expiration of the exemption herein conferred during such 40 construction so long as used at the completion of construction for 41 dwelling purposes for a period not to exceed fifteen years in the aggre- 42 gate, as follows: 43 a. except as otherwise provided herein there shall be full exemption 44 from taxation during the period of construction or the period of three 45 years immediately following commencement of construction, whichever 46 expires sooner, except for new multiple dwellings the construction of 47 which commenced between January first, two thousand seven, and June 48 thirtieth, two thousand nine, shall have an additional thirty-six months 49 to complete construction and shall be eligible for full exemption from 50 taxation for the first three years of the period of construction; any 51 eligible project that seeks to utilize the six-year period of 52 construction authorized by this section must apply for a preliminary 53 certificate of eligibility within one year of the effective date of the 54 rent act of 2011, provided, however that such multiple dwellings shallS. 5856 43 A. 8518 1 be eligible for a maximum of three years of benefits during the 2 construction period, and for eleven years following such period; 3 b. followed by one year of exemption from eighty percent of such taxa- 4 tion; 5 c. followed by one year of exemption from sixty percent of such taxa- 6 tion; 7 d. followed by one year of exemption from forty percent of such taxa- 8 tion; 9 e. followed by one year of exemption from twenty percent of such taxa- 10 tion. 11 § 40. Clause (A) of subparagraph (iii) of paragraph (a) of subdivision 12 2 of section 421-a of the real property tax law, as amended by chapter 13 702 of the laws of 1992, is amended to read as follows: 14 (A) Within a city having a population of one million or more the local 15 housing agency may adopt rules and regulations providing that new multi- 16 ple dwellings, except hotels, shall be exempt from taxation for local 17 purposes, other than assessments for local improvements, for the tax 18 year or years immediately following taxable status dates occurring 19 subsequent to the commencement and prior to the completion of 20 construction, but not to exceed three such tax years, except for new 21 multiple dwellings the construction of which commenced between January 22 first, two thousand seven, and June thirtieth, two thousand nine, shall 23 have an additional thirty-six months to complete construction and shall 24 be eligible for full exemption from taxation for the first three years 25 of the period of construction; any eligible project that seeks to 26 utilize the six-year period of construction authorized by this section 27 must apply for a preliminary certificate of eligibility within one year 28 of the effective date of the rent act of 2011, provided, however that 29 such multiple dwellings shall be eligible for a maximum of three years 30 of benefits during the construction period, and shall continue to be 31 exempt from such taxation in tax years immediately following the taxable 32 status date first occurring after the expiration of the exemption herein 33 conferred during such construction so long as used at the completion of 34 construction for dwelling purposes for a period not to exceed twenty- 35 five years in the aggregate, provided that the area in which the project 36 is situated is a neighborhood preservation program area as determined by 37 the local housing agency as of June first, nineteen hundred eighty-five, 38 or is a neighborhood preservation area as determined by the New York 39 city planning commission as of June first, nineteen hundred eighty-five, 40 or is an area that was eligible for mortgage insurance provided by the 41 rehabilitation mortgage insurance corporation as of May first, nineteen 42 hundred ninety-two or is an area receiving funding for a neighborhood 43 preservation project pursuant to the neighborhood reinvestment corpo- 44 ration act (42 U.S.C. §§180 et seq.) as of June first, nineteen hundred 45 eighty-five, as follows: 46 a. except as otherwise provided herein there shall be full exemption 47 from taxation during the period of construction or the period of three 48 years immediately following commencement of construction, whichever 49 expires sooner, except for new multiple dwellings the construction of 50 which commenced between January first, two thousand seven, and June 51 thirtieth, two thousand nine, shall have an additional thirty-six months 52 to complete construction and shall be eligible for full exemption from 53 taxation for the first three years of the period of construction; any 54 eligible project that seeks to utilize the six-year period of 55 construction authorized by this section must apply for a preliminary 56 certificate of eligibility within one year of the effective date of theS. 5856 44 A. 8518 1 rent act of 2011, provided, however that such multiple dwellings shall 2 be eligible for a maximum of three years of benefits during the 3 construction period, and for twenty-one years following such period; 4 b. followed by one year of exemption from eighty percent of such taxa- 5 tion; 6 c. followed by one year of exemption from sixty percent of such taxa- 7 tion; 8 d. followed by one year of exemption from forty percent of such taxa- 9 tion; 10 e. followed by one year of exemption from twenty percent of such taxa- 11 tion. 12 § 41. The opening paragraph of clause (A) of subparagraph (iv) of 13 paragraph (a) of subdivision 2 of section 421-a of the real property tax 14 law, as amended by chapter 618 of the laws of 2007, is amended to read 15 as follows: 16 Unless excluded by local law, in the city of New York, the benefits of 17 this subparagraph shall be available in the borough of Manhattan for new 18 multiple dwellings on tax lots now existing or hereafter created south 19 of or adjacent to either side of one hundred tenth street [which] that 20 commence construction after July first, nineteen hundred ninety-two and 21 before [December twenty-eighth] June fifteenth, two thousand [ten] 22 fifteen only if: 23 § 42. Subparagraph (ii) of paragraph (c) of subdivision 2 of section 24 421-a of the real property tax law, as amended by chapter 618 of the 25 laws of 2007, is amended to read as follows: 26 (ii) construction is commenced after January first, nineteen hundred 27 seventy-five and before [December twenty-eighth] June fifteenth, two 28 thousand [ten] fifteen provided, however, that such commencement period 29 shall not apply to multiple dwellings eligible for benefits under 30 subparagraph (iv) of paragraph (a) of this subdivision; 31 § 43. The real property tax law is amended by adding a new section 32 421-m to read as follows: 33 § 421-m. Exemption of certain new or substantially rehabilitated 34 multiple dwellings from local taxation. 1. (a) A city, town or village 35 may, by local law, provide for the exemption of multiple dwellings 36 constructed or substantially rehabilitated in a benefit area designated 37 in such local law from taxation and special ad valorem levies, but not 38 special assessments, as provided in this section. Subsequent to the 39 adoption of such a local law, any other municipal corporation in which 40 the designated benefit area is located may likewise exempt such property 41 from its taxation and special ad valorem levies by local law, or in the 42 case of a school district, by resolution. 43 (b) As used in this section, the term "benefit area" means the area 44 within a city, town or village, designated by local law, to which an 45 exemption, established pursuant to this section, applies. 46 (c) The term "substantial rehabilitation" means all work necessary to 47 bring a property into compliance with all applicable laws and regu- 48 lations including but not limited to the installation, replacement or 49 repair of heating, plumbing, electrical and related systems and the 50 elimination of all hazardous and immediately hazardous violations in the 51 structure in accordance with state and local laws and regulations of 52 state and local agencies. Substantial rehabilitation may also include 53 reconstruction or work to improve the habitability or prolong the useful 54 life of the property; provided substantial rehabilitation shall not 55 include ordinary maintenance or repair.S. 5856 45 A. 8518 1 (d) The term "multiple dwelling" means a dwelling, other than a hotel, 2 which is to be occupied or is occupied as the residence or home of three 3 or more families living independently of one another, whether such 4 dwelling is rented or owned as a cooperative or condominium. 5 2. (a) Eligible new or substantially rehabilitated multiple dwellings 6 in a designated benefit area shall be exempt according to the following 7 schedule: 8 CONSTRUCTION OR SUBSTANTIAL REHABILITATION OF CERTAIN 9 MULTIPLE DWELLINGS 10 During construction or Exemption 11 substantial rehabilitation 12 (maximum three years) 100% 13 Following completion of work year: 14 1 through 12 100% 15 13-14 80% 16 15-16 60% 17 17-18 40% 18 19-20 20% 19 (b) Provided that taxes shall be paid during any such period at least 20 in the amount of the taxes paid on such land and any improvements there- 21 on during the tax year preceding the commencement of such exemption. 22 Provided further that no other exemption may be granted concurrently to 23 the same improvements under any other section of law. 24 3. To be eligible for exemption under this section: 25 (a) Such construction or substantial rehabilitation shall take place 26 on vacant, predominantly vacant or under-utilized land, or on land 27 improved with a non-conforming use or on land containing one or more 28 substandard or structurally unsound dwellings, or a dwelling that has 29 been certified as unsanitary by the local health agency. 30 (b) Such construction or substantial rehabilitation was commenced on 31 or after the effective date of the local law, ordinance or resolution 32 described in subdivision one of this section, but no later than June 33 fifteenth, two thousand fifteen. 34 (c) At least twenty percent of the units shall be affordable to indi- 35 viduals or families of low and moderate income whose incomes at the time 36 of initial occupancy do not exceed ninety percent of the area median 37 income adjusted for family size and the individual or family shall pay 38 in rent or monthly carrying charges no more than thirty percent of their 39 adjusted gross income as reported in their federal income tax return, or 40 would be reported if such return were required, less such personal 41 exemptions and deductions and medical expenses as are actually taken by 42 the taxpayer, as verified according to procedures established by the 43 state division of housing and community renewal. Such procedures shall 44 be published through notice in the state register without further action 45 required for the promulgation of regulations pursuant to the state 46 administrative procedure act. 47 (d) Such construction or substantial rehabilitation is carried out 48 with the assistance of grants, loans or subsidies for the construction 49 or substantial rehabilitation of affordable housing from any federal, 50 state or local agency or instrumentality thereof. 51 4. Application for exemption under this section shall be made on a 52 form prescribed by the commissioner and filed with the assessor on or 53 before the applicable taxable status date. 54 5. In the case of property which is used partially as a multiple 55 dwelling and partially for commercial or other purposes, the property 56 shall be eligible for the exemption authorized by this section if:S. 5856 46 A. 8518 1 (a) The square footage of the portion used as a multiple dwelling 2 represents at least fifty percent of the square footage of the entire 3 property; 4 (b) At least twenty percent of the units are affordable to individuals 5 or families of low and moderate income, as determined according to the 6 criteria set forth in paragraph (c) of subdivision three of this 7 section; and 8 (c) The requirements of this section are otherwise satisfied with 9 respect to the portion of the property used as a multiple dwelling. 10 6. The exemption authorized by this section shall not be available in 11 a jurisdiction to which the provisions of section four hundred twenty- 12 one-a or four hundred twenty-one-c of this article are applicable. 13 7. A city, town or village providing an exemption pursuant to the 14 authority of this section shall develop an income monitoring and compli- 15 ance plan to meet the criteria of paragraph (c) of subdivision three of 16 this section and such plan shall be reviewed, evaluated and approved by 17 the state division of housing and community renewal as a condition of 18 providing such exemption. Such plan shall include an annual certif- 19 ication that the multiple dwelling receiving an exemption meets the 20 requirements of this section. Such certification shall be provided to 21 the assessor and the state division of housing and community renewal. If 22 such requirements are not met, then the multiple dwelling shall not 23 qualify for the exemption in that year. 24 § 44. The division of housing and community renewal shall, pursuant to 25 this act, promulgate rules and regulations to implement and enforce all 26 provisions of this act and any law renewed or continued by this act. 27 § 45. Severability clause. If any clause, sentence, paragraph, subdi- 28 vision, section or part of this act shall be adjudged by any court of 29 competent jurisdiction to be invalid, such judgment shall not affect, 30 impair, or invalidate the remainder thereof, but shall be confined in 31 its operation to the clause, sentence, paragraph, subdivision, section 32 or part thereof directly involved in the controversy in which such judg- 33 ment shall have been rendered. It is hereby declared to be the intent of 34 the legislature that this act would have been enacted even if such 35 invalid provisions had not been included herein. 36 § 46. This act shall take effect immediately and shall be deemed to 37 have been in full force and effect on and after June 24, 2011; provided, 38 however, that: 39 (a) the amendments to chapter 4 of title 26 of the administrative code 40 of the city of New York made by sections seven, twelve, fourteen, 41 sixteen, thirty-five and thirty-six of this act shall expire on the same 42 date as such chapter expires and shall not affect the expiration of such 43 chapter as provided under section 26-520 of such law; 44 (b) the amendments to section 4 of chapter 576 of the laws of 1974 45 constituting the emergency tenant protection act of nineteen seventy- 46 four made by sections eight, ten, thirteen, eighteen, twenty-nine and 47 thirty of this act shall expire on the same date as such act expires and 48 shall not affect the expiration of such act as provided in section 17 of 49 chapter 576 of the laws of 1974; 50 (c) the amendments to section 2 of the emergency housing rent control 51 law made by sections nine, twenty-five, thirty-one and thirty-two of 52 this act shall expire on the same date as such law expires and shall not 53 affect the expiration of such law as provided in subdivision 2 of 54 section 1 of chapter 274 of the laws of 1946; 55 (d) the amendments to chapter 3 of title 26 of the administrative code 56 of the city of New York made by sections eleven, fifteen, thirty-threeS. 5856 47 A. 8518 1 and thirty-four of this act shall remain in full force and effect only 2 as long as the public emergency requiring the regulation and control of 3 residential rents and evictions continues, as provided in subdivision 3 4 of section 1 of the local emergency housing rent control act; 5 (e) the amendments to section 421-a of the real property tax law made 6 by sections thirty-eight, thirty-nine, forty, forty-one and forty-two of 7 this act shall be deemed to have been in full force and effect as of 8 December 28, 2010; and 9 (f) the amendments made by sections thirty through thirty-seven of 10 this act shall not be grounds for dismissal of any owner application for 11 deregulation where a notice or application for such deregulation, that 12 is filed or served between May 1, 2011 through July 1, 2011, used the 13 income and rent deregulation thresholds in effect prior to the effective 14 date of such sections. Any tenant failure to respond to such notice or 15 application because of the use of such income or deregulation thresholds 16 shall constitute grounds to afford such tenant an additional opportunity 17 to respond. 18 PART C 19 Section 1. This act enacts into law major components of legislation 20 relating to mandate relief. Each component is wholly contained within a 21 Subpart identified as Subparts A through H. The effective date for each 22 particular provision contained within such Subpart is set forth in the 23 last section of such Subpart. Any provision in any section contained 24 within a Subpart, including the effective date of the Subpart, which 25 makes a reference to a section "of this act", when used in connection 26 with that particular component, shall be deemed to mean and refer to the 27 corresponding section of the Subpart in which it is found. Section three 28 of this act sets forth the general effective date of this act. 29 SUBPART A 30 Section 1. Subdivisions 3 and 5 of section 97-g of the state finance 31 law, subdivision 3 as amended by section 45 of part K of chapter 81 of 32 the laws of 2002 and subdivision 5 as added by chapter 710 of the laws 33 of 1964, are amended to read as follows: 34 3. Moneys of the fund shall be available to the commissioner of gener- 35 al services for the purchase of food, supplies and equipment for [state36institutions and other] state agencies, and for the purpose of furnish- 37 ing or providing centralized services to or for [state institutions and38other] state agencies; provided further that such moneys shall be avail- 39 able to the commissioner of general services for purposes pursuant to 40 items (d) and (f) of subdivision four of this section to or for poli- 41 tical subdivisions. Beginning the first day of April, two thousand two, 42 moneys in such fund shall also be transferred by the state comptroller 43 to the revenue bond tax fund account of the general debt service fund in 44 amounts equal to those required for payments to authorized issuers for 45 revenue bonds issued pursuant to article five-C of this chapter for the 46 purpose of lease purchases and installment purchases by or for state 47 agencies and institutions for personal or real property purposes. 48 5. The amount expended from such fund for the above-stated purposes 49 shall be charged against the [state institution or] agency or political 50 subdivisions above receiving such food, supplies, equipment and services 51 and all payments received therefor shall be credited to such fund.S. 5856 48 A. 8518 1 § 2. Subdivision 4 of section 97-g of the state finance law, as 2 amended by chapter 410 of the laws of 2009, is amended to read as 3 follows: 4 4. The term "centralized services" as used in this section shall mean 5 and include only (a) communications services, (b) mail, messenger and 6 reproduction services, (c) computer services, (d) fuels, including 7 natural gas, hydrogen, biofuels and gasoline, and automotive services, 8 (e) renovation and maintenance services, (f) purchases of electricity, 9 renewable energy, renewable energy credits or attributes from the power 10 authority of the state of New York and, in consultation with the power 11 authority of the state of New York, from other suppliers, (g) real prop- 12 erty management services, (h) building design and construction services, 13 (i) parking services, (j) distribution of United States department of 14 agriculture donated foods to eligible recipients, pursuant to all appli- 15 cable statutes and regulations, (k) distribution of federal surplus 16 property donations to all eligible recipients, pursuant to applicable 17 statutes and regulations, and (l) payments and related services for 18 lease purchases and installment purchases by or for state agencies and 19 institutions for personal property purposes financed through the issu- 20 ance of certificates of participation. The services defined in items (a) 21 through (c), (e), (g) and (h) of this subdivision shall be provided to 22 state agencies and institutions only. 23 § 3. Intentionally omitted 24 § 4. Section 103 of the general municipal law is amended by adding a 25 new subdivision 1-b to read as follows: 26 1-b. A political subdivision or any district therein shall have the 27 option of purchasing information technology and telecommunications hard- 28 ware, software and professional services through cooperative purchasing 29 permissible pursuant to federal general services administration informa- 30 tion technology schedule seventy or any successor schedule. A political 31 subdivision or any district therein that purchases through general 32 services administration schedule seventy, information technology and 33 consolidated schedule contracts shall comply with federal schedule 34 ordering procedures as provided in federal acquisition regulation 35 8.405-1 or 8.405-2 or successor regulations, whichever is applicable. 36 Adherence to such procedures shall constitute compliance with the 37 competitive bidding requirements under this section. 38 § 5. Subdivision 3 of section 103 of the general municipal law, as 39 amended by chapter 343 of the laws of 2007, is amended to read as 40 follows: 41 3. Notwithstanding the provisions of subdivision one of this section, 42 any officer, board or agency of a political subdivision or of any 43 district therein authorized to make purchases of materials, equipment or 44 supplies, or to contract for services, may make such purchases, or may 45 contract for services, other than services subject to article [eight or] 46 nine of the labor law, when available, through the county in which the 47 political subdivision or district is located or through any county with- 48 in the state subject to the rules established pursuant to subdivision 49 two of section four hundred eight-a of the county law; provided that the 50 political subdivision or district for which such officer, board or agen- 51 cy acts shall accept sole responsibility for any payment due the vendor 52 or contractor. All purchases and all contracts for such services shall 53 be subject to audit and inspection by the political subdivision or 54 district for which made. Prior to making such purchases or contracts the 55 officer, board or agency shall consider whether such contracts will 56 result in cost savings after all factors, including charges for service,S. 5856 49 A. 8518 1 material, and delivery, have been considered. No officer, board or agen- 2 cy of a political subdivision or of any district therein shall make any 3 purchase or contract for any such services through the county in which 4 the political subdivision or district is located or through any county 5 within the state when bids have been received for such purchase or such 6 services by such officer, board or agency, unless such purchase may be 7 made or the contract for such services may be entered into upon the same 8 terms, conditions and specifications at a lower price through the coun- 9 ty. 10 § 6. Subdivision 2 of section 408-a of the county law, as amended by 11 section 2 of part X of chapter 62 of the laws of 2003, is amended to 12 read as follows: 13 2. The board of supervisors may, in the case of any purchase contract 14 or any contract for services, other than services subject to article 15 [eight or] nine of the labor law, of the county to be awarded to the 16 lowest responsible bidder after advertisement for bids, authorize the 17 inclusion of a provision whereby purchases may be made or such services 18 may be obtained under such contract by any political subdivision or fire 19 company (as both are defined in section one hundred of the general 20 municipal law) or district. In such event, the board shall adopt rules 21 prescribing the conditions under which, and the manner in which, 22 purchases may be made or services may be obtained by such political 23 subdivision, fire company or district. 24 § 7. Section 104 of the general municipal law, as amended by chapter 25 137 of the laws of 2008, is amended to read as follows: 26 § 104. Purchase through office of general services; certain federal 27 contracts. 1. Notwithstanding the provisions of section one hundred 28 three of this article or of any other general, special or local law, any 29 officer, board or agency of a political subdivision, of a district ther- 30 ein, of a fire company or of a voluntary ambulance service authorized to 31 make purchases of materials, equipment, food products, or supplies, or 32 services available pursuant to sections one hundred sixty-one and one 33 hundred sixty-seven of the state finance law, may make such purchases, 34 except of printed material, through the office of general services 35 subject to such rules as may be established from time to time pursuant 36 to sections one hundred sixty-three and one hundred sixty-seven of the 37 state finance law [or through the general services administration pursu-38ant to section 1555 of the federal acquisition streamlining act of 1994,39P.L. 103-355]; provided that any such purchase shall exceed five hundred 40 dollars and that the political subdivision, district, fire company or 41 voluntary ambulance service for which such officer, board or agency acts 42 shall accept sole responsibility for any payment due the vendor. All 43 purchases shall be subject to audit and inspection by the political 44 subdivision, district, fire company or voluntary ambulance service for 45 which made. No officer, board or agency of a political subdivision, or a 46 district therein, of a fire company or of a voluntary ambulance service 47 shall make any purchase through such office when bids have been received 48 for such purchase by such officer, board or agency, unless such purchase 49 may be made upon the same terms, conditions and specifications at a 50 lower price through such office. Two or more fire companies or voluntary 51 ambulance services may join in making purchases pursuant to this 52 section, and for the purposes of this section such groups shall be 53 deemed "fire companies or voluntary ambulance services." 54 2. Notwithstanding the provisions of section one hundred three of this 55 article or of any other general, special or local law, any officer, 56 board or agency of a political subdivision, or of a district therein,S. 5856 50 A. 8518 1 may make purchases from federal general service administration supply 2 schedules pursuant to section 211 of the federal e-government act of 3 2002, P.L. 107-347, and pursuant to section 1122 of the national defense 4 authorization act for fiscal year 1994, P.L. 103-160, or any successor 5 schedules in accordance with procedures established pursuant thereto. 6 Prior to making such purchases the officer, board or agency shall 7 consider whether such purchases will result in cost savings after all 8 factors, including charges for service, material, and delivery, have 9 been considered. 10 § 8. Subdivision 2 of section 27 of the municipal home rule law, as 11 amended by chapter 259 of the laws of 1987, is amended to read as 12 follows: 13 2. Each such certified copy shall contain the text only of the local 14 law without the brackets and without the matter within the brackets, the 15 matter with a line run through it, or the italicizing or underscoring, 16 if any, to indicate the changes made by it, except that each such certi- 17 fied copy of a local law enacted by a city with a population of one 18 million or more shall be printed in the same form as the official copy 19 of the proposed local law which became the local law provided that line 20 numbers, the printed number of the bill and explanatory matter shall be 21 omitted[, and also have attached thereto a certificate executed by the22corporation counsel, municipal attorney or other principal law officer23to the effect that it contains the correct text and that all proper24proceedings have been had or taken for the enactment of such local law,25which certificate shall constitute presumptive evidence thereof,26provided that any failure or omission so to certify shall not invalidate27such local law]. 28 § 9. This act shall take effect immediately, provided, however that: 29 1. sections one, four, five, six and seven of this act shall expire 30 and be deemed repealed 3 years after they shall have become a law; 31 2. the amendments to subdivision 4 of section 97-g of the state 32 finance law made by section two of this act shall not affect the expira- 33 tion and reversion of such subdivision as provided in section 3 of chap- 34 ter 410 of the laws of 2009, and shall expire and be deemed repealed 35 therewith; 36 3. sections four, five, six and seven of this act shall apply to any 37 contract let or awarded on or after such effective date. 38 SUBPART B 39 Section 1. Section 99-r of the general municipal law, as amended by 40 section 1 of part B of chapter 494 of the laws of 2009, is amended to 41 read as follows: 42 § 99-r. Contracts for services. Notwithstanding any other provisions 43 of law to the contrary, the governing board of any municipal corporation 44 may enter into agreements and/or contracts with any state agency includ- 45 ing any department, board, bureau, commission, division, office, coun- 46 cil, committee, or officer of the state, whether permanent or temporary, 47 or a public benefit corporation or public authority, or a soil and water 48 conservation district, and any unit of the state university of New York, 49 pursuant to and consistent with sections three hundred fifty-five and 50 sixty-three hundred one of the education law within or without such 51 municipal corporation to provide or receive fuel, equipment, maintenance 52 and repair, supplies, water supply, street sweeping or maintenance, 53 sidewalk maintenance, right-of-way maintenance, storm water and other 54 drainage, sewage disposal, landscaping, mowing, or any other services ofS. 5856 51 A. 8518 1 government. Such state agency, soil and water conservation district, or 2 unit of the state university of New York, within the limits of any 3 specific statutory appropriation authorized and made available therefor 4 by the legislature or by the governing body responsible for the opera- 5 tion of such state agency, soil and water conservation district, or unit 6 of the state university of New York may contract with any municipal 7 corporation for such services as herein provided and may provide, in 8 agreements and/or contracts entered into pursuant to this section, for 9 the reciprocal provision of services or other consideration of approxi- 10 mately equivalent value, including, but not limited to, routine and/or 11 emergency services, monies, equipment, buildings and facilities, materi- 12 als or a commitment to provide future routine and/or emergency services, 13 monies, equipment, buildings and facilities or materials. Any such 14 contract may be entered into by direct negotiations and shall not be 15 subject to the provisions of section one hundred three of this chapter. 16 § 2. Paragraph (e) of subdivision 4 of section 10-c of the highway 17 law, as amended by chapter 413 of the laws of 1991, is amended to read 18 as follows: 19 (e) Funds allocated for local street or highway projects under this 20 subdivision shall be used to undertake work on a project either with the 21 municipality's own forces or by contract, provided however, that whenev- 22 er the estimate for the construction contract work exceeds one hundred 23 thousand dollars but does not exceed two hundred fifty thousand dollars 24 such work must be performed either with the municipality's own forces or 25 by contract let by competitive bid in accordance with the provisions of 26 section one hundred three of the general municipal law and provided 27 further, however, that whenever the estimate for the construction 28 contract work exceeds two hundred fifty thousand dollars such work must 29 be performed by contract let by competitive bid in accordance with the 30 provisions of section one hundred three of the general municipal law. 31 § 3. Section 102 of the general municipal law, as added by chapter 861 32 of the laws of 1953 and subdivision 2 as amended by chapter 537 of the 33 laws of 1984, is amended to read as follows: 34 § 102. Deposits on plans and specifications. 1. Notwithstanding any 35 inconsistent provision of any general, special or local law, the offi- 36 cer, board or agency of any political subdivision or of any district 37 therein, charged with the duty of preparing plans and specifications for 38 and awarding or entering into contracts for the performance of public 39 work, [shall] may require, as a deposit to guarantee the safe return of 40 such plans and specifications, the payment of a fixed sum of money, not 41 exceeding one hundred dollars for each copy thereof, by persons or 42 corporations desiring a copy thereof. Any person or corporation desiring 43 a copy of such plans and specifications and making the [deposit] payment 44 required by this section shall be furnished with one copy of the plans 45 and specifications. 46 2. If a proposal is duly submitted by any person or corporation making 47 the deposit required by subdivision one and such proposal is accompanied 48 by a certified check or other security in accordance with the require- 49 ments contained in the plans and specifications or in the public adver- 50 tisement for bids, and if the copy of the plans and specifications used 51 by such person or corporation, other than the successful bidder, is 52 returned in good condition within thirty days following the award of the 53 contract covered by such plans and specifications or the rejection of 54 the bid of such person or corporation, the full amount of such deposit 55 for one copy of the plans and specifications shall be returned to such 56 person or corporation, including the successful bidder. PartialS. 5856 52 A. 8518 1 reimbursement, in an amount equal to the full amount of such deposit for 2 one set of plans and specifications per unsuccessful bidder or non-bid- 3 der less the actual cost of reproduction of the plans and specifications 4 as determined by the officer, board or agency of any political subdivi- 5 sion or of any district therein, charged with the duty of preparing the 6 plans and specifications, shall be made for the return of all other 7 copies of the plans and specifications in good condition within thirty 8 days following the award of the contract or the rejection of the bids 9 covered by such plans and specifications. 10 § 4. This act shall take effect immediately. 11 SUBPART C 12 Section 1. Section 72-c of the general municipal law, as amended by 13 chapter 229 of the laws of 1992, is amended to read as follows: 14 § 72-c. Expenses of members of the police department and other peace 15 officers in attending police training schools. The board or body of a 16 county, city, town or village authorized to appropriate and to raise 17 money by taxation and to make payments therefrom, is hereby authorized, 18 in its discretion, to appropriate and to raise money by taxation and to 19 make payments from such moneys, for the annual expenses of the members 20 of the police department of such municipal corporation in attending a 21 police training school, as provided by the regulations of the depart- 22 ment, either within such municipal corporation or elsewhere within the 23 state; and for the payment of reasonable expenses of such members and 24 other police officers or peace officers of the municipality while going 25 to, attending, and returning from any training school conducted by or 26 under the auspices of the federal bureau of investigation, whether with- 27 in or without the state. Notwithstanding any inconsistent provision of 28 any general, special or local law to the contrary, whenever a member of 29 the police department of a municipal corporation[, having a population30of ten thousand or less,] has attended a police training school, the 31 expense of which was borne by such municipal corporation, terminates 32 employment with such municipal corporation and commences employment with 33 any other municipal corporation or employer county sheriff, such employ- 34 er municipal corporation or employer county sheriff shall reimburse the 35 prior employer municipal corporation[, having a population of ten thou-36sand or less,] for such expenses, including, salary, tuition, enrollment 37 fees, books, and the cost of transportation to and from training school, 38 as follows: on a pro rata basis, to be calculated by subtracting from 39 the number of days in the three years following the date of the member's 40 graduation from police training school, the number of days between the 41 date of the member's graduation from training school and the date of the 42 termination of employment with the municipal corporation which paid for 43 such training, and multiplying the difference by the per diem cost of 44 such expenses, to be calculated by dividing the total cost of such 45 expenses by the number of days in the three years following the date of 46 the member's graduation, if such change in employment occurs within 47 three years of such member's graduation from police training school. 48 Provided, however, the employer municipal corporation or employer county 49 sheriff shall not be required to reimburse the prior employer municipal 50 corporation for that portion of such expenses which is reimbursable by 51 the member to the prior employer municipal corporation under the terms 52 of an employment or labor agreement. Provided, further, however, the 53 employer municipal corporation or employer county sheriff shall not be 54 required to reimburse the prior employer municipal corporation for suchS. 5856 53 A. 8518 1 basic training if such change in employment occurs after the expiration 2 of the validity of the member's certificate attesting to the satisfac- 3 tory completion of an approved municipal police basic training program. 4 § 2. Section 207-m of the general municipal law is REPEALED. 5 § 3. The opening paragraph and paragraph (l) of subdivision 4 of 6 section 20.40 of the criminal procedure law, paragraph (l) as amended by 7 chapter 346 of the laws of 2007, are amended to read as follows: 8 A person may be convicted in an appropriate criminal court of a 9 particular county, of an offense of which the criminal courts of this 10 state have jurisdiction pursuant to section 20.20, committed either by 11 his or her own conduct or by the conduct of another for which he or she 12 is legally accountable pursuant to section 20.00 of the penal law, when: 13 (l) An offense of identity theft or unlawful possession of personal 14 [identification] identifying information and all criminal acts committed 15 as part of the same criminal transaction as defined in subdivision two 16 of section 40.10 of this chapter may be prosecuted (i) in any county in 17 which part of the offense took place regardless of whether the defendant 18 was actually present in such county, or (ii) in the county in which the 19 person who suffers financial loss resided at the time of the commission 20 of the offense, or (iii) in the county where the person whose personal 21 [identification] identifying information was used in the commission of 22 the offense resided at the time of the commission of the offense. The 23 law enforcement agency of any such county shall take a police report of 24 the matter and provide the complainant with a copy of such report at no 25 charge. 26 § 4. Section 176 of the family court act is amended to read as 27 follows: 28 § 176. Inter-county probation. [If a person placed under probation by29the family court resides in or moves to a county other than the county30in which he was placed on probation, the family court which placed him31on probation may transfer the proceedings to the county in which the32probationer resides or to which he has moved or may place him under the33supervision of the probation service attached to the family court in34which the probationer resides or to which he has moved.] 35 1. Where a person placed on probation resides in another jurisdiction 36 within the state at the time of the order of disposition, the family 37 court which placed him or her on probation shall transfer supervision to 38 the probation department in the jurisdiction in which the person 39 resides. Where, after a probation disposition is pronounced, a proba- 40 tioner requests to reside in another jurisdiction within the state, the 41 family court which placed him or her on probation may, in its 42 discretion, approve a change in residency and, upon approval, shall 43 transfer supervision to the probation department serving the county of 44 the probationer's proposed new residence. Any transfer under this subdi- 45 vision must be in accordance with rules adopted by the commissioner of 46 the division of criminal justice services. 47 2. Upon completion of a transfer as authorized pursuant to subdivision 48 one of this section, the family court within the jurisdiction of the 49 receiving probation department shall assume all powers and duties of the 50 family court which placed the probationer on probation and shall have 51 sole jurisdiction in the case. The family court which placed the proba- 52 tioner on probation shall immediately forward its entire case record to 53 the receiving court. 54 3. Upon completion of a transfer as authorized pursuant to subdivision 55 one of this section, the probation department in the receiving jurisdic- 56 tion shall assume all powers and duties of the probation department inS. 5856 54 A. 8518 1 the jurisdiction of the family court which placed the probationer on 2 probation. 3 § 5. The mental hygiene law is amended by adding a new section 29.28 4 to read as follows: 5 § 29.28 Payment of costs for prosecution of inmate-patients. 6 (a) When an inmate-patient, as defined in subdivision (a) of section 7 29.27 of this article, who was committed from a state correctional 8 facility, is alleged to have committed an offense while in the custody 9 of the department, the department of corrections and community super- 10 vision shall pay all reasonable costs for the prosecution of such 11 offense, including but not limited to, costs for: a grand jury impaneled 12 to hear and examine evidence of such offense, petit jurors, witnesses, 13 the defense of any inmate financially unable to obtain counsel in 14 accordance with the provisions of the county law, the district attorney, 15 the costs of the sheriff and the appointment of additional court attend- 16 ants, officers or other judicial personnel. 17 (b) It shall be the duty of the governing body of any county wherein 18 such prosecution occurs to cause a sworn statement of all costs to be 19 forwarded to the department. Upon certification by the department that 20 such costs as authorized by this statute have been incurred, the depart- 21 ment shall forward the proper vouchers to the state comptroller. It 22 shall be the duty of the comptroller to examine such statement and to 23 correct same by striking therefrom any and all items which are not 24 authorized pursuant to the provisions of this section and after correct- 25 ing such statement, the comptroller shall draw his warrant for the 26 amount of any such costs in favor of the appropriate county treasurer, 27 which sum shall be paid to said county treasurer out of any moneys 28 appropriated therefor. 29 (c) The department shall, after consultation with the director of the 30 budget, promulgate rules and regulations to carry out the provisions of 31 this section. 32 § 6. This act shall take effect immediately, provided, that section 33 five of this act shall take effect on the thirtieth day after it shall 34 have become law. 35 SUBPART D 36 Section 1. Section 514 of the general municipal law, as amended by 37 chapter 492 of the laws of 1963, is amended to read as follows: 38 § 514. Filing of proposed plans. The municipality or agency, as the 39 case may be, shall file with the commissioner a copy of [each] any 40 proposed urban renewal program assisted by state loans, periodic subsi- 41 dies or capital grants, embodying the plans, layout, estimated cost and 42 proposed [methed] method of financing. Any change made in [the] an urban 43 renewal program assisted by state loans, periodic subsidies or capital 44 grants shall be filed with the commissioner. From time to time prior to 45 completion, and with reasonable promptness after [each] any urban 46 renewal program assisted by state loans, periodic subsidies or capital 47 grants shall have been completed, upon request of the commissioner, the 48 municipality or agency shall file with the commissioner a detailed 49 statement of the cost thereof. 50 Upon receipt of a copy of a proposed urban renewal program, or any 51 proposed change therein, the commissioner may transmit his criticism and 52 suggestions to the municipality or agency, as the case may be. No change 53 in an urban renewal program assisted by state loans, periodic subsidiesS. 5856 55 A. 8518 1 or capital grants may be made by a municipality or agency without the 2 approval of the commissioner. 3 § 2. Subdivision 1 of section 553 of the general municipal law, as 4 amended by chapter 681 of the laws of 1963, subparagraph 1 of paragraph 5 (a) as amended by chapter 213 of the laws of 1966, is amended to read as 6 follows: 7 1. (a) Upon the establishment of a municipal urban renewal agency by 8 special act of the legislature, the mayor of the city or village wherein 9 such agency is established, or the town board of the town, shall file 10 within six months after the effective date of the special act of the 11 legislature establishing such agency or before the first day of July, 12 nineteen hundred sixty-four, whichever date shall be later, [in the13office of the commissioner, and a duplicate] in the office of the secre- 14 tary of state, a certificate signed by him setting forth: (1) the effec- 15 tive date of the special act establishing the agency; (2) the name of 16 the agency; (3) the names of the members and their terms of office, 17 specifying which member is the chairman; and (4) facts establishing the 18 need for the establishment of an agency in such city, town or village. 19 (b) Every such agency shall be perpetual in duration, except that if 20 [(1) such certificate is not filed with and approved by the commissioner21within six months after the effective date of the special act of the22legislature establishing such agency or before the first day of July,23nineteen hundred sixty-four, whichever date shall be later, or if (2)], 24 at the expiration of ten years subsequent to the effective date of the 25 special act, there shall be outstanding no bonds or other obligations 26 theretofore issued by such agency or by the municipality for or on [in] 27 behalf of the agency, then the corporate existence of such agency shall 28 thereupon terminate and it shall [there upon] thereupon be deemed to be 29 and shall be dissolved. 30 § 3. Subdivision 2 of section 553 of the general municipal law, as 31 added by chapter 921 of the laws of 1962, is amended to read as follows: 32 2. An agency shall be a corporate governmental agency, constituting a 33 public benefit corporation. Except as otherwise provided by special act 34 of the Legislature, an agency shall consist of not less than three nor 35 more than five members who shall be appointed by the mayor of a city or 36 village or the town board of a town and who shall serve at the pleasure 37 of the appointing authority. A member shall continue to hold office 38 until his successor is appointed and has qualified. The mayor of a city 39 or village, or the town board of a town, shall designate the first 40 chairman [and file with the commissioner a certificate of appointment or41re-appointment of any member]. Such members shall receive no compen- 42 sation for their services but shall be entitled to the necessary 43 expenses, including traveling expenses, incurred in the discharge of 44 their duties. 45 § 4. This act shall take effect immediately. 46 SUBPART E 47 Section 1. Section 410-x of the social services law is amended by 48 adding a new subdivision 8 to read as follows: 49 8. Notwithstanding any provision of law to the contrary, child care 50 assistance payments made pursuant to this section may be made by direct 51 deposit or debit card, as elected by the recipient, and administered 52 electronically, and in accordance with such guidelines, as may be set 53 forth by regulation of the office of children and family services. The 54 office of children and family services may enter into contracts onS. 5856 56 A. 8518 1 behalf of local social services districts for such direct deposit or 2 debit card services in accordance with section twenty-one-a of this 3 chapter. 4 § 2. Subdivision 2 of section 378 of the social services law, as 5 amended by chapter 555 of the laws of 1978, is amended to read as 6 follows: 7 2. Such certificates and licenses shall be valid for not more than 8 [one year] two years after date of issue but may be renewed or extended 9 subject to regulations established by the [department] office of chil- 10 dren and family services. 11 § 3. This act shall take effect immediately. 12 SUBPART F 13 Section 1. Subdivision 1 of section 3241 of the education law, as 14 amended by chapter 971 of the laws of 1969, is amended to read as 15 follows: 16 1. The board of education of each city, except in cities having a 17 population of one hundred twenty-five thousand or more, shall constitute 18 a permanent census board in such city. Such board shall, under its regu- 19 lations, cause a census of the children in its city to be taken and to 20 be amended from day to day, as changes of residence shall occur among 21 persons in such cities within the ages prescribed in subdivision two of 22 this section and as other persons shall come within the ages prescribed 23 therein and as other persons within such ages shall become residents of 24 such cities, so that there shall always be on file with such board a 25 complete census giving the facts and information required in subdivision 26 two of this section; provided, however, that for pre-school students 27 from birth to five years of age, such census may be prepared and filed 28 biennially on or before the fifteenth day of October. 29 § 2. Section 3242 of the education law, as amended by chapter 425 of 30 the laws of 1993, is amended to read as follows: 31 § 3242. School census in school districts. The trustees or board of 32 education of every school district may cause a census to be taken of all 33 children between birth and eighteen years of age, including all such 34 facts and information as are required in the census provided for in 35 section thirty-two hundred forty-one of this chapter. Such census shall 36 be prepared annually for children between ages five and eighteen who are 37 entitled to attend the public schools without payment of tuition in 38 duplicate in their respective school districts, and one copy thereof 39 filed with the teacher or principal and the other copy filed with the 40 district superintendent or superintendent on or before the [fifteen] 41 fifteenth day of October. For pre-school students from birth to five 42 years of age, such census may be prepared and filed biennially on or 43 before the fifteenth day of October. Such census shall include the 44 reports and information required from cities as provided in section 45 thirty-two hundred forty-one. All information regarding a [handicapped46person] student with a disability under the age of twenty-one years 47 shall be filed annually with the superintendent of the board of cooper- 48 ative educational services of which said district may be a part. 49 § 3. Section 3635 of the education law is amended by adding a new 50 subdivision 8 to read as follows: 51 8. a. The trustees or board of education of a school district may, at 52 its discretion, provide student transportation based upon patterns of 53 actual ridership. The actual ridership shall be determined by a school 54 district based upon documented history and experience that yields aS. 5856 57 A. 8518 1 consistent pattern of eligible pupils not using district transportation; 2 or modeling of future ridership; or the sharing of transportation 3 regionally; or other criteria approved by the commissioner; provided 4 however that any methodology shall require an additional ten percent in 5 seating capacity above the number of seats derived using such methodol- 6 ogy which shall be available in case of unanticipated riders. 7 Nothing in this subdivision shall be construed to reduce or relieve 8 school districts from the responsibility of providing transportation to 9 students otherwise eligible for such transportation. Nothing in this 10 subdivision shall be construed to authorize a school district to have 11 standing passengers in violation of section thirty-six hundred thirty- 12 five-c of this article, and unanticipated ridership shall not be deemed 13 an unforeseen occurrence for purposes of subdivision two of such section 14 after the first day in which such unanticipated ridership occurs. 15 Any school district that, at its discretion, has elected to provide 16 student transportation based upon patterns of actual ridership shall 17 place such plans on the school district's website, if one exists, on or 18 before August fifteenth of the school year in which the transportation 19 plan will be implemented and shall be required to have a back up plan as 20 part of their emergency management practices for pupil transportation in 21 the event that a bus is filled beyond capacity. 22 b. The commissioner shall evaluate the effectiveness of this subdivi- 23 sion including the methodologies used by school districts to determine 24 the patterns of actual ridership and whether such methodologies ensure 25 that all students otherwise eligible receive transportation and that 26 student safety is assured. 27 § 4. Clause (b) of subparagraph 3 of paragraph e of subdivision 6 of 28 section 3602 of the education law, as amended by section 1 of part F of 29 chapter 383 of the laws of 2001, is amended to read as follows: 30 (b) Such assumed amortization for a project approved by the commis- 31 sioner on or after the later of the first day of December, two thousand 32 one or thirty days after the date upon which this subdivision shall have 33 become a law and prior to the first day of July, two thousand eleven or 34 for any debt service related to projects approved by the commissioner 35 prior to such date where a bond, capital note or bond anticipation note 36 is first issued on or after [such date] the first day of December, two 37 thousand one to fund such projects, shall commence: (i) eighteen months 38 after such approval or (ii) on the date of receipt by the commissioner 39 of a certification by the district that a general construction contract 40 has been awarded for such project by the district, whichever is later, 41 and such assumed amortization for a project approved by the commissioner 42 on or after the first day of July, two thousand eleven shall commence: 43 (iii) eighteen months after such approval or (iv) on the date of receipt 44 by the commissioner of both the final certificate of substantial 45 completion of the project issued by the architect or engineer and the 46 final cost report for such project, whichever is later or (v) upon the 47 date of a finding by the commissioner that the certificate of substan- 48 tial completion of the project has been issued by the architect or engi- 49 neer, but the district is unable to complete the final cost report 50 because of circumstances beyond the control of the district. Such 51 assumed amortization shall provide for equal semiannual payments of 52 principal and interest based on an interest rate established pursuant to 53 subparagraph five of this paragraph for such purpose for the school year 54 during which such certification is received. The first installment of 55 obligations issued by the school district in support of such projectsS. 5856 58 A. 8518 1 may mature not later than the dates established pursuant to sections 2 21.00 and 22.10 of the local finance law. 3 § 5. Subdivision 35 of section 1604 of the education law, as added by 4 chapter 263 of the laws of 2005, is amended to read as follows: 5 35. a. In their discretion, to adopt a resolution establishing the 6 office of claims auditor and appoint a claims auditor who shall hold his 7 or her position subject to the pleasure of such trustees. In its 8 discretion, the trustees may adopt a resolution establishing the office 9 of deputy claims auditor who shall act as claims auditor in the absence 10 of the claims auditor. Such claims auditor shall report directly to the 11 trustees. No person shall be eligible for appointment to the office of 12 claims auditor or deputy claims auditor who shall also be: 13 (1) a trustee of the school district; 14 (2) the clerk or treasurer of the school district; 15 (3) the superintendent of schools or other official of the district 16 responsible for business management; 17 (4) the person designated as purchasing agent; or 18 (5) clerical or professional personnel directly involved in accounting 19 and purchasing functions of the school district. 20 b. Such claims auditor or deputy claims auditor shall not be required 21 to be a resident of the district, and the [position] positions of claims 22 auditor and deputy claims auditor shall be classified in the exempt 23 class of the civil service. The trustees, at any time after the estab- 24 lishment of the office of claims auditor or deputy claims auditor, may 25 adopt a resolution abolishing such office, whereupon such office shall 26 be abolished. When the office of claims auditor shall have been estab- 27 lished and a claims auditor shall have been appointed and shall have 28 qualified, the powers and duties of the trustees with respect to claims 29 auditing, and allowing or rejecting all accounts, charges, claims or 30 demands against the school district, shall devolve upon and thereafter 31 be exercised by such claims auditor during the continuance of such 32 office. The trustees shall be permitted to delegate the claims audit 33 function to one or more independent entities by using (1) inter-munici- 34 pal cooperative agreements, (2) shared services to the extent authorized 35 by section nineteen hundred fifty of this title, or (3) independent 36 contractors, to fulfill this function. 37 c. When the trustees delegate the claims audit function using an 38 inter-municipal cooperative agreement, shared service authorized by 39 section nineteen hundred fifty of this title, or an independent contrac- 40 tor, the trustees shall be responsible for auditing all claims for 41 services from the entity providing the delegated claims auditor, either 42 directly or through a delegation to a different independent entity. 43 § 6. Subdivision 20-a of section 1709 of the education law, as 44 amended by chapter 263 of the laws of 2005, is amended to read as 45 follows: 46 20-a. a. In its discretion to adopt a resolution establishing the 47 office of claims auditor and appoint a claims auditor who shall hold his 48 or her position subject to the pleasure of such board of education. In 49 its discretion, the board of education may adopt a resolution establish- 50 ing the office of deputy claims auditor who shall act as claims auditor 51 in the absence of the claims auditor. Such claims auditor shall report 52 directly to the board of education. No person shall be eligible for 53 appointment to the office of claims auditor or deputy claims auditor who 54 shall also be: 55 (1) a member of the board of education; 56 (2) the clerk or treasurer of the board of education;S. 5856 59 A. 8518 1 (3) the superintendent of schools or other official of the district 2 responsible for business management; 3 (4) the person designated as purchasing agent; or 4 (5) clerical or professional personnel directly involved in accounting 5 and purchasing functions of the school district. 6 b. Such claims auditor or deputy claims auditor shall not be required 7 to be a resident of the district, and such position shall be classified 8 in the exempt class of the civil service. Such board of education, at 9 any time after the establishment of the office of claims auditor or 10 deputy claims auditor, may adopt a resolution abolishing such office, 11 whereupon such office shall be abolished. When the office of claims 12 auditor shall have been established and a claims auditor shall have been 13 appointed and shall have qualified, the powers and duties of the board 14 of education with respect to claims auditing, allowing or rejecting all 15 accounts, charges, claims or demands against the school district shall 16 devolve upon and thereafter be exercised by such claims auditor, during 17 the continuance of such office. A board shall be permitted to delegate 18 the claims audit function to one or more independent entities by using 19 (1) inter-municipal cooperative agreements, (2) shared services to the 20 extent authorized by section nineteen hundred fifty of this title, or 21 (3) independent contractors, to fulfill this function. 22 c. When the board of education delegates the claims audit function 23 using an inter-municipal cooperative agreement, shared service author- 24 ized by section nineteen hundred fifty of this title, or an independent 25 contractor, the board shall be responsible for auditing all claims for 26 services from the entity providing the delegated claims auditor, either 27 directly or through a delegation to a different independent entity. 28 § 7. Paragraph e of subdivision 2 of section 1711 of the education 29 law, as amended by chapter 263 of the laws of 2005, is amended to read 30 as follows: 31 e. To have supervision and direction of associate, assistant and other 32 superintendents, directors, supervisors, principals, teachers, lectur- 33 ers, medical inspectors, nurses, claims auditors, deputy claims audi- 34 tors, attendance officers, janitors and other persons employed in the 35 management of the schools or the other educational activities of the 36 district authorized by this chapter and under the direction and manage- 37 ment of the board of education; to transfer teachers from one school to 38 another, or from one grade of the course of study to another grade in 39 such course, and to report immediately such transfers to such board for 40 its consideration and actions; to report to such board violations of 41 regulations and cases of insubordination, and to suspend an associate, 42 assistant or other superintendent, director, supervisor, expert, princi- 43 pal, teacher or other employee until the next regular meeting of such 44 board, when all facts relating to the case shall be submitted to such 45 board for its consideration and action. 46 § 8. Subdivision 1 of section 1724 of the education law, as amended by 47 chapter 259 of the laws of 1975, is amended to read as follows: 48 1. No claim against a central school district or a union free school 49 district, except for compensation for services of an officer or employee 50 engaged at agreed wages by the hour, day, week, month or year or for the 51 principal of or interest on indebtedness of the district, shall be paid 52 unless an itemized voucher therefor approved by the officer whose action 53 gave rise or origin to the claim, shall have been presented to the board 54 of education of the district and shall have been audited and allowed; 55 provided, however that in the case of a school district with a public 56 school enrollment of ten thousand students or more, the board of educa-S. 5856 60 A. 8518 1 tion may, at its discretion, use a risk-based or sampling methodology to 2 determine which claims are to be audited in lieu of auditing all claims 3 so long as it is determined by resolution of the board of education that 4 the methodology for choosing the sample provides reasonable assurance 5 that all the claims represented in the sample are proper charges against 6 the school district. The board of education shall be authorized, but 7 not required, to prescribe the form of such voucher. 8 § 9. Subdivision 5 of section 2503 of the education law, as amended by 9 chapter 263 of the laws of 2005, is amended to read as follows: 10 5. Shall create, abolish, maintain and consolidate such positions, 11 divisions, boards or bureaus as, in its judgment, may be necessary for 12 the proper and efficient administration of its work; shall appoint prop- 13 erly qualified persons to fill such positions, including a superinten- 14 dent of schools, such associate, assistant and other superintendents, 15 directors, supervisors, principals, teachers, lecturers, special 16 instructors, medical inspectors, nurses, claims auditors, deputy claims 17 auditors, attendance officers, secretaries, clerks, custodians, janitors 18 and other employees and other persons or experts in educational, social 19 or recreational work or in the business management or direction of its 20 affairs as said board shall determine necessary for the efficient 21 management of the schools and other educational, social, recreational 22 and business activities; and shall determine their duties except as 23 otherwise provided herein. 24 § 10. Subdivision 5 of section 2508 of the education law, as amended 25 by chapter 263 of the laws of 2005, is amended to read as follows: 26 5. To have supervision and direction of associate, assistant and other 27 superintendents, directors, supervisors, principals, teachers, lectur- 28 ers, medical inspectors, nurses, claims auditors, deputy claims audi- 29 tors, attendance officers, janitors and other persons employed in the 30 management of the schools or the other educational activities of the 31 district authorized by this chapter and under the direction and manage- 32 ment of the board of education; to transfer teachers from one school to 33 another, or from one grade of the course of study to another grade in 34 such course, and to report immediately such transfers to such board for 35 its consideration and action; to report to such board violations of 36 regulations and cases of insubordination, and to suspend an associate, 37 assistant or other superintendent, director, supervisor, expert, princi- 38 pal, teacher or other employee until the next regular meeting of such 39 board, when all facts relating to the case shall be submitted to such 40 board for its consideration and action. 41 § 11. Subdivision 2 of section 2523 of the education law, as amended 42 by chapter 263 of the laws of 2005, is amended to read as follows: 43 2. Such moneys shall be disbursed only on the signature of such treas- 44 urer by checks payable to the person or persons entitled thereto. The 45 board of education may in its discretion require that such checks-other 46 than checks for salary, be countersigned by another officer of such 47 district. When authorized by resolution of the board of education such 48 checks may be signed with the facsimile signature of the treasurer and 49 other district officer whose signature is required, as reproduced by a 50 machine or device commonly known as a check-signer. Each check drawn by 51 the treasurer shall state the fund against which it is drawn. No fund 52 shall be overdrawn nor shall any check be drawn upon one fund to pay a 53 claim chargeable to another. No money shall be paid out by the treasurer 54 except upon the warrant of the clerk of the board of education after 55 audit and allowance by such board, or if a claims auditor or deputy 56 claims auditor shall have been appointed, except upon the warrant ofS. 5856 61 A. 8518 1 such claims auditor or deputy claims auditor after audit and allowance 2 thereof; provided, however, when provision for payment has been made in 3 the annual budget the treasurer may pay, without such warrant or prior 4 audit and allowance, (a) the principal of and interest on bonds, notes 5 or other evidences of indebtedness of the district or for the payment of 6 which the district shall be liable, and (b) compensation for services of 7 officers or employees engaged at agreed wages by the hour, day, week, 8 month or year upon presentation of a duly certified payroll; and 9 provided further that in the case of a city school district with a 10 public school enrollment of ten thousand students or more, the board of 11 education may, at its discretion, use a risk-based or sampling methodol- 12 ogy to determine which claims are to be audited in lieu of auditing all 13 claims so long as it is determined by resolution of the board of educa- 14 tion that the methodology for choosing the sample provides reasonable 15 assurance that all the claims represented in the sample are proper 16 charges against the school district. By resolution duly adopted, the 17 board may determine to enter into a contract to provide for the deposit 18 of the periodic payroll of the school district in a bank or trust compa- 19 ny for disbursal by it in accordance with provisions of section ninety- 20 six-b of the banking law. 21 § 12. Subdivision 1 of section 2524 of the education law, as amended 22 by chapter 263 of the laws of 2005, is amended to read as follows: 23 1. No claim against a city school district, except for compensation 24 for services of an officer or employee engaged at agreed wages by the 25 hour, day, week, month or year or for the principal of or interest on 26 indebtedness of the district, shall be paid unless an itemized voucher 27 therefor approved by the officer whose action gave rise or origin to the 28 claim, shall have been presented to the board of education, or the 29 claims auditor or deputy claims auditor of the city school district and 30 shall have been audited and allowed, provided that in the case of a city 31 school district with a public school enrollment of ten thousand students 32 or more, the board of education may, at its discretion, use a risk-based 33 or sampling methodology to determine which claims are to be audited in 34 lieu of auditing all claims so long as it is determined by resolution of 35 the board of education that the methodology for choosing the sample 36 provides reasonable assurance that all the claims represented in the 37 sample are proper charges against the school district. The board of 38 education shall be authorized, but not required, to prescribe the form 39 of such voucher. 40 § 13. Section 2525 of the education law, as amended by chapter 263 of 41 the laws of 2005, is amended to read as follows: 42 § 2525. Audit of claims. 1. The board of education, in considering any 43 claim or where applicable a sampling of claims, may require any person 44 presenting the same to be sworn before it or before any member thereof 45 and to give testimony relative to the justness and accuracy of such 46 claim, and may take evidence and examine witnesses under oath in respect 47 to the claim, and for that purpose may issue subpoenas for the attend- 48 ance of witnesses. When a claim or where applicable a sampling of claims 49 has been finally audited by the board of education the clerk of such 50 board shall endorse thereon or attach thereto a certificate of such 51 audit and file the same as a public record in his or her office. When 52 any claim has been so audited and a certificate thereof so filed, the 53 clerk of the board of education shall draw a warrant specifying the name 54 of the claimant, the amount allowed and the fund, function and object 55 chargeable therewith and such other information as may be deemed neces- 56 sary and essential, directed to the treasurer of the district, authoriz-S. 5856 62 A. 8518 1 ing and directing him or her to pay to the claimant the amount allowed 2 upon his or her claim. A copy of such warrant shall be filed in the 3 office of the clerk. 4 2. In a city school district in which the office of claims auditor or 5 deputy claims auditor has been created, the claims auditor or deputy 6 claims auditor in considering a claim or where applicable a sampling of 7 claims, may require any person presenting the same to be sworn before 8 him or her and to give testimony relative to the justness and accuracy 9 of such claim, and may take evidence and examine witnesses under oath in 10 respect to the claim, and for that purpose may issue subpoenas for the 11 attendance of witnesses. When a claim, or where applicable a sampling of 12 claims, has been finally audited by the claims auditor or deputy claims 13 auditor he or she shall endorse thereon or attach thereto a certificate 14 of such audit and file the same as a public record in his or her office. 15 When any claim has been so audited and a certificate thereof so filed, 16 the claims auditor or deputy claims auditor shall draw a warrant speci- 17 fying the number of the claim, the name of the claimant, the amount 18 allowed and the fund, function and object chargeable therewith and such 19 other information as may be deemed necessary or essential, directed to 20 the treasurer of the district, authorizing and directing him or her to 21 pay to the claimant the amount allowed upon his or her claim. In the 22 case of a city school district with a public school enrollment of ten 23 thousand students or more, the board of education may, at its 24 discretion, use a risk-based or sampling methodology to determine which 25 claims are to be audited in lieu of auditing all claims so long as it is 26 determined by resolution of the board of education that the methodology 27 for choosing the sample provides reasonable assurance that all the 28 claims represented in the sample are proper charges against the school 29 district. A copy of such warrant shall be filed in the office of the 30 clerk. 31 § 14. Section 2526 of the education law, as amended by chapter 263 of 32 the laws of 2005, is amended to read as follows: 33 § 2526. Claims auditor. 1. The board of education of a city school 34 district may adopt a resolution establishing the office of claims audi- 35 tor and appoint a claims auditor who shall hold his or her position 36 subject to the pleasure of such board of education. In its discretion, 37 the board may adopt a resolution establishing the office of deputy 38 claims auditor who shall act as claims auditor in the absence of the 39 claims auditor. Such claims auditor shall report directly to the board 40 of education. No person shall be eligible for appointment to the office 41 of claims auditor or deputy claims auditor who shall be: 42 (1) a member of the board of education; 43 (2) the clerk or treasurer of the board of education; 44 (3) the superintendent of schools or other official of the district 45 responsible for business management; 46 (4) the person designated as purchasing agent; or 47 (5) clerical or professional personnel directly involved in accounting 48 and purchasing functions of the school district. 49 1-a. The [position] positions of claims auditor and deputy claims 50 auditor shall be classified in the exempt class of civil service. Such 51 board of education, at any time after the establishment of the office of 52 claims auditor or deputy claims auditor, may adopt a resolution abolish- 53 ing such office, whereupon such office shall be abolished. 54 2. When the office of claims auditor shall have been established and a 55 claims auditor shall have been appointed and shall have qualified, the 56 powers and duties of the board of education with respect to claimsS. 5856 63 A. 8518 1 auditing, allowing or rejecting all accounts, charges, claims or demands 2 against the city school district shall devolve upon and thereafter be 3 exercised by such claims auditor, during the continuance of such office. 4 The board of education shall be permitted to delegate the claims audit 5 function to one or more independent entities by using (1) inter-munici- 6 pal cooperative agreements, (2) shared services to the extent authorized 7 by section nineteen hundred fifty of this title, or (3) independent 8 contractors, to fulfill this function. 9 3. When the board of education delegates the claims audit function 10 using an inter-municipal cooperative agreement, shared service author- 11 ized by section nineteen hundred fifty of this title, or an independent 12 contractor, the board shall be responsible for auditing all claims for 13 services from the entity providing the delegated claims auditor, either 14 directly or through a delegation to a different independent entity. 15 § 15. Section 2527 of the education law, as amended by chapter 263 of 16 the laws of 2005, is amended to read as follows: 17 § 2527. Official undertakings. The clerk of the board of education or, 18 where the office of claims auditor or deputy claims auditor has been 19 created, the claims auditor or deputy claims auditor, and the treasurer, 20 collector and such other officers and employees as the board of educa- 21 tion shall designate, shall, before they enter upon the duties of their 22 respective offices or positions, each execute to the school district and 23 file with the school district clerk an official undertaking in such sum 24 and with such corporate surety as the board of education shall direct 25 and approve. The board of education may, at any time, require any such 26 officer or employee to file a new official undertaking for such sum and 27 with such corporate surety as the board shall approve. Such undertakings 28 as shall have been approved by the board of education shall forthwith be 29 filed with the school district clerk. The expense of any undertaking 30 executed pursuant to this section shall be a school district charge. 31 § 16. Subdivision 2-a of section 2554 of the education law, as amended 32 by chapter 263 of the laws of 2005, is amended to read as follows: 33 2-a. a. In its discretion to adopt a resolution establishing the 34 office of claims auditor and appoint a claims auditor who shall hold his 35 or her position subject to the pleasure of the board. In its discretion, 36 the board may adopt a resolution establishing one or more offices of 37 deputy claims auditor who shall act as claims auditor in the absence of 38 the claims auditor. Such claims auditor shall report directly to the 39 board of education. No person shall be eligible for appointment to the 40 office of claims auditor or deputy claims auditor who shall be 41 (1) a member of the board of education; 42 (2) a clerk or treasurer of the board of education; 43 (3) the superintendent of schools or other official of the district 44 responsible for business management; 45 (4) the person designated as purchasing agent; or 46 (5) clerical or professional personnel directly involved in accounting 47 and purchasing functions of the school district. 48 b. The [position] positions of claims auditor or deputy claims auditor 49 shall be classified in the exempt class of civil service. The board of 50 education, at any time after the establishment of the office of claims 51 auditor or deputy claims auditor, may adopt a resolution abolishing the 52 office. When the office of claims auditor shall have been established 53 and a claims auditor shall have been appointed and shall have qualified, 54 the powers and duties of the board of education with respect to auditing 55 accounts, charges, claims or demands against the city school district 56 shall devolve upon and thereafter be exercised by such claims auditor,S. 5856 64 A. 8518 1 during the continuance of the office. The board of education shall be 2 permitted to delegate the claims audit function to one or more independ- 3 ent entities by using (1) inter-municipal cooperative agreements, or (2) 4 independent contractors, to fulfill this function. 5 c. When the board of education delegates the claims audit function 6 using an inter-municipal cooperative agreement, shared service author- 7 ized by section nineteen hundred fifty of this title, or an independent 8 contractor, the board shall be responsible for auditing all claims for 9 services from the entity providing the delegated claims auditor, either 10 directly or through a delegation to a different independent entity. 11 § 17. Subdivision 2 of section 2562 of the education law, as amended 12 by chapter 263 of the laws of 2005, is amended to read as follows: 13 2. The said board of education may require any person presenting for 14 settlement an account or claim for any cause whatever against it to be 15 sworn before it or a committee thereof, or before the claims auditor or 16 deputy claims auditor, or before any person designated by said board, 17 touching such account or claim, and when so sworn, to answer orally as 18 to any facts relative to the justness of such account or claim. A member 19 of the board, the claims auditor, or any other person designated as 20 hereinbefore stated, shall have the power to administer an oath to any 21 person who shall give testimony to the justness of such account or 22 claim, and for the purpose of securing such testimony may issue subpoe- 23 nas for the attendance of witnesses. Wilful false swearing before the 24 said board of education, a committee thereof, the claims auditor or 25 deputy claims auditor, or before any person designated as hereinbefore 26 stated, is perjury and punishable as such. 27 § 18. Subdivision 6 of section 2566 of the education law, as amended 28 by chapter 263 of the laws of 2005, is amended to read as follows: 29 6. To have supervision and direction of associate, assistant, district 30 and other superintendents, directors, supervisors, principals, teachers, 31 lecturers, medical inspectors, nurses, claims auditors, deputy claims 32 auditors, attendance officers, janitors and other persons employed in 33 the management of the schools or the other educational activities of the 34 city authorized by this chapter and under the direction and management 35 of the board of education, except that in the city school districts of 36 the cities of Buffalo and Rochester to also appoint, within the amounts 37 budgeted therefor, such associate, assistant and district superinten- 38 dents and all other supervising staff who are excluded from the right to 39 bargain collectively pursuant to article fourteen of the civil service 40 law; to transfer teachers from one school to another, or from one grade 41 of the course of study to another grade in such course, and to report 42 immediately such transfers to said board for its consideration and 43 action; to report to said board of education violations of regulations 44 and cases of insubordination, and to suspend an associate, assistant, 45 district or other superintendent, director, supervisor, expert, princi- 46 pal, teacher or other employee until the next regular meeting of the 47 board, when all facts relating to the case shall be submitted to the 48 board for its consideration and action. 49 § 19. Paragraph a of subdivision 1 of section 2576 of the education 50 law, as amended by chapter 263 of the laws of 2005, is amended to read 51 as follows: 52 a. The salary of the superintendent of schools, associate, district or 53 assistant or other superintendents, examiners, directors, supervisors, 54 principals, teachers, lecturers, special instructors, claims auditors, 55 deputy claims auditors, medical inspectors, nurses, attendance officers, 56 clerks, custodians and janitors and the salary, fees or compensation ofS. 5856 65 A. 8518 1 all other employees appointed or employed by said board of education. In 2 addition, the expenses of personnel utilized to fulfill the internal 3 audit function pursuant to section twenty-one hundred sixteen-b of this 4 [chapter] title. 5 § 20. Subdivisions 2 and 4 of section 2580 of the education law, 6 subdivision 2 as amended by chapter 263 of the laws of 2005 and subdivi- 7 sion 4 as amended by chapter 452 of the laws of 1964, are amended to 8 read as follows: 9 2. Such funds shall be disbursed by authority of the board of educa- 10 tion upon written orders drawn on the city treasurer or other fiscal 11 officer of the city. Such orders shall be signed by the superintendent 12 of schools and the secretary of the board of education or such other 13 officers as the board may authorize. If a claims auditor or deputy 14 claims auditor shall have been appointed, orders shall be signed by 15 [the] such claims auditor; provided, however, that the board may 16 require, in addition, the signature of such other officer or officers as 17 it may by resolution direct. Orders shall be numbered consecutively and 18 shall specify the purpose for which they are drawn and the person or 19 corporation to whom they are payable. 20 4. It shall be unlawful for a city treasurer or other officer having 21 the custody of such city funds to permit their use for any purpose other 22 than that for which they are lawfully authorized; they shall be paid out 23 only on audit of the board of education or as otherwise provided herein; 24 provided, however, that the board of education may, at its discretion, 25 use a risk-based or sampling methodology to determine which claims are 26 to be audited in lieu of auditing all claims so long as it is determined 27 by resolution of the board of education that the methodology for choos- 28 ing the sample provides reasonable assurance that all the claims repres- 29 ented in the sample are proper charges against the school district. 30 Payments from such funds shall be made only by checks signed by the 31 treasurer or other custodian of such moneys and payable to the person or 32 persons entitled thereto and countersigned either by the comptroller, or 33 in a city having no comptroller, by an officer designated by the officer 34 or body having the general control of the financial affairs of such 35 city. The board of education of such city shall make, in addition to 36 such classification of its funds and accounts as it desires for its own 37 use and information, such further classification of the funds under its 38 management and control and of the disbursements thereof as the comp- 39 troller of the city, or the officer or body having the general control 40 of the financial affairs of such city, shall require, and such board 41 shall furnish such data in relation to such funds and their disburse- 42 ments as the comptroller or such other financial officer or body of the 43 city shall require. 44 § 21. The education law is amended by adding a new section 1527-c to 45 read as follows: 46 § 1527-c. Shared superintendent program. Notwithstanding any other 47 provision of law, rule or regulation to the contrary, the governing 48 board of a school district with an enrollment of less than one thousand 49 students in the previous year shall be authorized to enter into a school 50 superintendent sharing contract with no more than two additional school 51 districts each of which had fewer than one thousand in enrolled pupils 52 in the previous year. Each shared superintendent arrangement shall be 53 governed by the boards of education of the school districts participat- 54 ing in the shared contract. Provided however, that this section shall 55 not be construed to alter, affect or impair any employment contract 56 which is in effect on or before July first, two thousand thirteen. AnyS. 5856 66 A. 8518 1 school district which has entered into a school superintendent sharing 2 program will continue to be eligible to complete such contract notwith- 3 standing that the enrollment of the school district exceeded one thou- 4 sand students after entering into a shared superintendent contract. 5 § 22. Section 1604 of the education law is amended by adding a new 6 subdivision 21-b to read as follows: 7 21-b. a. The trustees are authorized to provide regional transporta- 8 tion services by rendering such services jointly with other school 9 districts or boards of cooperative educational services. Such services 10 may include pupil transportation between home and school, transportation 11 during the day to and from school and a special education program or 12 service or a program at a board of cooperative educational services or 13 an approved shared program at another school district, transportation 14 for field trips or to and from extracurricular activities, and cooper- 15 ative school bus maintenance. 16 b. The trustees are authorized to enter into a contract with another 17 school district, a county, municipality, or the state office of children 18 and family services to provide transportation for children, including 19 contracts to provide such transportation as regional transportation 20 services, provided that the contract cost is appropriate. In determining 21 the appropriate transportation contract cost, the transportation service 22 provider school district shall use a calculation consistent with regu- 23 lations adopted by the commissioner for the purpose of assuring that 24 charges reflect the true costs that would be incurred by a prudent 25 person in the conduct of a competitive transportation business. 26 § 23. Paragraphs g and h of subdivision 25 of section 1709 of the 27 education law, paragraph g as added by chapter 367 of the laws of 1979 28 and paragraph h as added by chapter 700 of the laws of 1993, are amended 29 to read as follows: 30 g. The board of education is authorized to provide regional transpor- 31 tation services by rendering such services jointly with other school 32 districts or boards of cooperative educational services. Such services 33 may include pupil transportation between home and school, transportation 34 during the day to and from school and a special education program or 35 service or a program at a board of cooperative educational services or 36 an approved shared program at another school district, transportation 37 for field trips or to and from extracurricular activities, and cooper- 38 ative school bus maintenance. 39 h. The board of education is authorized to enter into a contract with 40 another school district, a county, municipality, or the state [division41for youth] office of children and family services to provide transporta- 42 tion for children, including contracts to provide such transportation as 43 regional transportation services, provided that the contract cost is 44 appropriate. In determining the appropriate transportation contract 45 cost, the transportation service provider school district shall use a 46 calculation consistent with regulations adopted by the commissioner for 47 the purpose of assuring that charges reflect the true costs that would 48 be incurred by a prudent person in the conduct of a competitive trans- 49 portation business. 50 § 24. Paragraph b of subdivision 2 of section 33 of the general 51 municipal law, as added by chapter 267 of the laws of 2005, is amended 52 to read as follows: 53 b. In undertaking such audits the comptroller's review shall include, 54 but not be limited to: 55 (1) examining, auditing and evaluating financial documents and records 56 of school districts, BOCES and charter schools,S. 5856 67 A. 8518 1 (2) assessing the current financial practices of school districts, 2 BOCES and charter schools to ensure that they are consistent with estab- 3 lished standards, including whether any school district that uses a 4 risk-based or sampling methodology to determine which claims are to be 5 audited in lieu of auditing all claims has adopted a methodology that 6 provides reasonable assurance that all the claims represented in the 7 sample are proper charges against the school district; and 8 (3) determining that school districts, BOCES, and charter schools 9 provide for adequate protections against any fraud, theft, or profes- 10 sional misconduct. 11 § 25. The comptroller shall review the effectiveness of allowing 12 school districts to use a risk-based or sampling methodology to deter- 13 mine which claims are to be audited in lieu of auditing all claims 14 including whether this practice maintains adequate school district 15 fiscal accountability and any recommendations for improvements or 16 modifications that should be made and whether school districts should be 17 authorized to continue such practice. Such report shall be issued to the 18 governor and the legislature by January 15, 2014. 19 § 26. This act shall take effect immediately provided, however, that 20 the provisions of section three of this act shall expire June 30, 2014 21 when upon such date the provisions of such section shall be deemed 22 repealed; provided, further that the provisions of sections eight, elev- 23 en, twelve, thirteen and twenty of this act shall expire July 1, 2014 24 when upon such date the provisions of such sections shall be deemed 25 repealed. 26 SUBPART G 27 Section 1. Paragraph 1 of subdivision (c) of section 81.44 of the 28 mental hygiene law, as added by chapter 175 of the laws of 2008, is 29 amended to read as follows: 30 1. serve a copy of the statement of death upon the court examiner, the 31 duly appointed personal representative of the decedent's estate, or, if 32 no [person] personal representative has been appointed, then upon the 33 personal representative named in the decedent's will or any trust 34 instrument, if known, upon the local department of social services and 35 upon the public administrator of the chief fiscal officer of the county 36 in which the guardian was appointed, and 37 § 2. Subdivision 4 of section 458-b of the social services law is 38 amended by adding a new paragraph (d) to read as follows: 39 (d) Payments pursuant to this section may be made by direct deposit or 40 debit card, as elected by the recipient, and administered electron- 41 ically, and in accordance with section twenty-one-a of this chapter and 42 with such guidelines as may be set forth by regulation of the office of 43 children and family services. The office of children and family services 44 may enter into contracts on behalf of local social services districts 45 for such direct deposit or debit card services in accordance with 46 section twenty-one-a of this chapter. 47 § 3. This act shall take effect immediately; provided, however that 48 section one of this act shall take effect on the ninetieth day after it 49 shall have become law; provided, further, that section two of this act 50 shall take effect on the same date and in the same manner as section 4 51 of part F of chapter 58 of the laws of 2010, takes effect. 52 SUBPART HS. 5856 68 A. 8518 1 Section 1. Section 204-a of the state administrative procedure act, 2 as added by chapter 479 of the laws of 2001, is amended to read as 3 follows: 4 § 204-a. Alternate methods for implementing regulatory mandates. 1. As 5 used in this section: 6 (a) "local government" means any county, city, town, village, school 7 district, fire district or other special district; 8 (b) "regulatory mandate" means any rule which requires one or more 9 local governments to create a new program, increase the level of service 10 for an existing program or otherwise comply with mandatory requirements; 11 and 12 (c) "petition" means a document submitted by a local government seek- 13 ing approval of an alternate method for implementing a regulatory 14 mandate. 15 2. A local government, or two or more local governments acting joint- 16 ly, may seek approval for an alternate method of implementing a regula- 17 tory mandate by submitting to the appropriate state agency a petition 18 which shall include but not be limited to: 19 (a) for each involved local government, an indication that submission 20 has been approved by the governing body of the local government or by an 21 officer duly authorized by the governing body to do so; 22 (b) an identification of the regulatory mandate which is the subject 23 of the petition and information sufficient to establish that the 24 proposed alternate method of implementation is consistent with and will 25 effectively carry out the objectives of the regulatory mandate; 26 (c) information [on the process used by the local government to ensure27that all stakeholders have been appropriately involved in the process of28developing the alternate method, including where relevant the date of29any hearing, forum or other meeting to seek input on the alternate meth-30od] sufficient to establish that the proposed alternate method of imple- 31 mentation is consistent with and will effectively carry out the objec- 32 tives of the regulatory mandate; 33 (d) documentation that the petition has been submitted to the author- 34 ized agents of any certified or recognized employee organizations 35 representing employees who would be effected by implementation of the 36 alternate method; 37 (e) [a proposed plan and timetable for compiling and reporting infor-38mation to facilitate evaluation of the effectiveness of the alternate39method;] 40 (f) if] whether the state [provides] has provided financial assistance 41 for complying with the regulatory mandate[, any proposed amount or42percentage of such assistance which would be returned to the state due43to savings from implementing the alternate method]; and 44 [(g)] (f) the name, public office address and telephone number of the 45 representative of the local government who will coordinate requests for 46 additional information on the petition; and 47 [3. Two] (g) where two or more local governments [may submit a peti-48tion] have petitioned jointly, [provided that each local government49meets the requirements of paragraphs (a), (c), (d) and (g) of subdivi-50sion two of this section, and provided that the petition] information 51 which addresses the manner in which responsibility for implementation 52 will be allocated between or among the participating local governments. 53 [4] 3. The agency shall cause a notice of the petition to be 54 published in the state register and a newspaper of general circulation 55 in the impacted community and shall receive comments on the petition for 56 a period of thirty days. Such notice shall either include the full textS. 5856 69 A. 8518 1 of the information set forth in the petition or shall set forth the 2 address of a website on which the full text has been posted. The notice 3 shall include the name, public office address and telephone number, and 4 may include a fax number and electronic mail address, of an agency 5 representative from whom additional information on the petition can be 6 obtained and to whom comments on the petition may be submitted. 7 [5. (a)] 4. Not later than thirty days after the last day of the 8 comment period, the agency shall approve or disapprove the petition. The 9 agency may approve the petition without change or with such conditions 10 or modifications as the agency deems appropriate. Notice of the agency 11 determination shall be provided in writing to the local government and 12 shall be published in the state register. The agency shall not grant a 13 petition unless it determines that the petition has met the requirements 14 of subdivision two of this section and that the local government has 15 established that the alternate method is consistent with and will effec- 16 tively carry out the objectives of the regulatory mandate; provided, 17 however, that no petition shall be approved which would result in the 18 contravention of any environmental, health or safety standard or would 19 reduce any benefits or rights accorded by law or rule to third parties. 20 In approving a petition, an agency may waive a statutory provision only 21 if it is specifically authorized by law to waive such provision. An 22 approval shall include a timetable for agency evaluation of the effec- 23 tiveness of the alternate method. 24 (b) Notwithstanding the provisions of paragraph (a) of this subdivi- 25 sion, upon receipt of an objection to a petition from the authorized 26 agent of any certified or recognized employee organization representing 27 employees who would be affected by implementation of the alternate meth- 28 od, the agency shall provide any such organizations with an opportunity 29 for a hearing. If an adjudicatory proceeding is requested, the petition 30 shall not be approved unless the agency determines by a preponderance of 31 the evidence that implementing the alternate method would not affect 32 such employees by contravening any environmental, health or safety stan- 33 dard, reducing any rights or benefits or violating the terms of any 34 negotiated agreement, and that all other requirements of this section 35 have been met. The provisions of this subdivision are in addition to and 36 shall not be construed to impair or modify any rights of such employees 37 under any other law, regulation or contract. 38 5. A local government that objects to a state agency determination to 39 modify or disapprove its petition may appeal in writing to the mandate 40 relief council, who, upon review of the agency's findings and determi- 41 nation, may approve, modify or disapprove the petition. 42 6. Nothing in this section shall require a local government to 43 commence or continue an alternate method of implementation if it deter- 44 mines in its sole discretion not to do so, except to the extent that a 45 local government has committed to commencing or continuing an alternate 46 method in a joint petition submitted pursuant to subdivision [three] two 47 of this section. 48 7. A state agency may rescind its approval of a petition [at any time49if it determines, based on the information reported pursuant to para-50graph (e) of subdivision two of this section or other information avail-51able to it, that the alternate method is not effectively carrying out52the objectives of the regulatory mandate or is being implemented in a53manner detrimental to the public interest] only after a hearing, 54 provided, however, that the agency may suspend its approval of a peti- 55 tion prior to a hearing if it finds that immediate suspension is neces- 56 sary to address an imminent threat to health or safety. Notice of aS. 5856 70 A. 8518 1 hearing must be provided to the petitioner at least thirty days prior to 2 the hearing and must be posted on the agency's website. Such notice must 3 state the basis for the agency's decision to seek rescission and inform 4 the local government that it may request information relied upon by the 5 agency in making its determination, which information must be provided 6 to the local government at least seven days in advance of the hearing. 7 After such hearing, the agency may rescind its approval upon a finding 8 that the alternative method of implementation is not consistent with or 9 does not effectively carry out the objectives of the regulatory mandate. 10 [7.] 8. Notwithstanding any other provision of law, implementation of 11 an alternate method approved by an agency pursuant to this section shall 12 be deemed to lawfully meet all requirements of the regulatory mandate. 13 An agency shall retain the authority to enforce compliance with the 14 alternate method in the same manner as it may enforce compliance with 15 the underlying rule. Any action on a petition by a state agency shall be 16 subject to review pursuant to article seventy-eight of the civil prac- 17 tice law and rules. 18 [8.] 9. In accordance with the timetable established pursuant to 19 subdivision [four] three of this section, the agency shall evaluate the 20 effectiveness of the alternate method in carrying out the objectives of 21 the regulatory mandate. The evaluation shall identify any savings or 22 other benefits, and any costs or other disadvantages, of implementing 23 the alternate method, and shall address the desirability of incorporat- 24 ing the alternate method into the rules of the agency. Notice of avail- 25 ability of the evaluation shall be published in the state register. 26 § 2. The executive law is amended by adding a new section 666 to read 27 as follows: 28 § 666. Mandate relief council. 1. Definitions. a. "Mandate" means any 29 requirement that a local government perform or administer any program, 30 project or activity, required or imposed by a state law or state agency 31 that requires a higher level of service for an existing local government 32 program, project or activity. 33 b. "Local government" means a county, city, town, village, school 34 district, or special district. 35 c. "State agency" or "agency" means any state agency, department, 36 office, board, bureau, division, committee, council or office under the 37 direction or control of the executive. 38 2. Mandate relief council. There is hereby created within the execu- 39 tive department the mandate relief council, which shall be comprised of 40 eleven members as follows: the secretary to the governor, who shall 41 chair the council, the counsel to the governor, the director of the 42 division of the budget, the secretary of state, and three additional 43 members to be appointed by the governor from among his or her executive 44 chamber staff, two members to be appointed by the temporary president of 45 the senate, and two members to be appointed by the speaker of the assem- 46 bly. 47 a. Six members of the council, or their designees in the case of the 48 director of the division of the budget and the secretary of state, shall 49 constitute a quorum. 50 b. The council shall meet regularly upon the call of its chair and as 51 frequently as its business may require. The members of the council shall 52 serve without compensation but shall receive reimbursement for their 53 reasonable and necessary expenses. 54 c. The council shall, upon request of a local government or one of the 55 members of the council, identify and review mandates that can be elimi- 56 nated or reformed, and make such other and further inquiries, reportsS. 5856 71 A. 8518 1 and recommendations as the council may deem necessary and prudent to 2 effectuate its mission of mandate relief. In identifying and determining 3 whether such mandates are unsound, unduly burdensome or costly, the 4 council shall receive and consider public comment about them and shall 5 review them in light of cost-benefit principles and such other and 6 further factors as the council shall deem necessary and prudent. The 7 council shall not make a referral to the governor that a mandate be 8 eliminated or reformed regarding any of the following mandates: 9 (i) those which are required to comply with federal laws or rules or 10 to meet eligibility standards for federal entitlements; 11 (ii) those which reapportion the costs of activities between boards of 12 education, counties, and municipalities; 13 (iii) those which implement provisions of the state constitution; and 14 (iv) those which the council determines are necessary for the mainte- 15 nance of the public health or safety of the people of New York state. 16 d. All votes of the council, and all deliberations and reports of its 17 proceedings shall be open to the public pursuant to article seven of the 18 public officers law. 19 3. Council actions on regulatory mandates. Upon a determination that a 20 mandate in any regulation, rule or order of any state agency has been 21 imposed upon any local government in an unsound, unduly burdensome or 22 costly manner so as to necessitate that it be eliminated or reformed, 23 the council shall have the power to: 24 a. refer a request by a local government for a review of such regula- 25 tory mandate, for petition by such local government for a waiver, 26 modification or repeal of such regulatory mandate pursuant to section 27 two hundred four-a of the state administrative procedure act. In the 28 event the council votes to make such referral on behalf of a local 29 government, the state agency that is charged with reviewing the petition 30 shall provide the technical assistance and support for such local 31 government to properly prepare and submit such petition. In the event 32 that such state agency reviewing the petition of the local government 33 pursuant to section two hundred four-a of the state administrative 34 procedure act does not provide the remedy sought by such local govern- 35 ment, the council may hear and consider an appeal of such decision and 36 grant such relief as it deems appropriate, including the making of a 37 referral to the governor for the waiving, modifying or repealing of such 38 regulatory mandate. The council shall adopt procedures by which it 39 shall consider, decide and effectuate the remedies of such appeals 40 consistent with this section. 41 b. upon a two-thirds vote, refer a regulation to the governor for 42 repeal or modification, where the council has previously determined that 43 such regulation imposes upon any local government a mandate in an 44 unsound, unduly burdensome or costly manner, so as to necessitate that 45 it be eliminated or reformed. Upon receipt of such referral by the 46 council, the governor shall within sixty days, direct the state agency 47 responsible for the promulgation, repeal or modification of such regu- 48 lation to effectuate such repeal or modification of the regulation 49 pursuant to the procedures that such agency would otherwise be required 50 to follow under the law, had such agency on its own accord sought to 51 repeal or modify the regulation. 52 4. Council actions on statutory mandates. The council may, upon a vote 53 of seven members, refer a statute to the governor for repeal or modifi- 54 cation, where the council has previously determined that such statute 55 imposes upon any local government a mandate in an unsound, unduly 56 burdensome or costly manner, so as to necessitate that it be eliminatedS. 5856 72 A. 8518 1 or reformed. Upon receipt of the referral by the council, the governor, 2 within sixty days, shall have prepared a governor's program bill, for 3 introduction in both houses of the legislature, to effectuate such 4 repeal or modification of the statute. 5 5. Local government request. A local government may, by resolution of 6 its governing body, ask the council to review a specific statute, regu- 7 lation, rule or order of state government to determine whether such 8 statute, regulation, rule or order of state government is an unfunded 9 mandate or is otherwise unsound, unduly burdensome or costly so as to 10 require that it be eliminated or reformed. No local government may make 11 more than three such requests in each calendar year. Upon such review, 12 the council shall, by majority vote, determine whether such mandate has 13 been imposed upon such local government in an unsound, unduly burdensome 14 or costly manner, so as to necessitate that it be eliminated or 15 reformed. A determination of the council shall resolve any dispute 16 regarding whether such a statute, regulation, rule or order constitutes 17 such an unfunded mandate, but shall not be deemed a judicial determi- 18 nation under the law. 19 6. Appeals. Upon an appeal of a petition previously decided by a state 20 agency pursuant to section two hundred four-a of the state administra- 21 tive procedure act, the council, upon request of the local government, 22 shall review the state agency's determination and may affirm, modify or 23 reject such determination. Such appeal shall not preclude or limit a 24 local government or any other party with standing from pursuing any 25 right it may have pursuant to a proceeding instituted in accordance with 26 the provisions of article seventy-eight of the civil practice law and 27 rules or any other statute. 28 7. Reports. The council shall by December fifteenth of each year 29 report to the governor and legislature regarding its activities, and 30 regarding the issues, statutes, regulations, rules and orders which it 31 reviewed, examined, proposed, referred, and/or considered. Such reports, 32 which shall be adopted upon a majority vote of the members of the coun- 33 cil, or their designees in the case of the director of the division of 34 the budget or the secretary of state. All reports of the council shall 35 be posted on a publicly accessible website. 36 8. Assistance of other agencies. To effectuate the purposes of this 37 section, any state agency shall, at the request of the council, provide 38 to the council such facilities, assistance and data as will enable the 39 council to properly carry out its responsibilities and duties. 40 § 3. This act shall take effect immediately; provided, however, that 41 section one of this act shall take effect on the thirtieth day after it 42 shall have become a law and shall expire January 1, 2015 or upon the 43 departure from office of the fifty-sixth governor whichever comes first, 44 provided however that section two of this act shall take effect January 45 15, 2012 and shall expire January 1, 2015 or upon the departure from 46 office of the fifty-sixth governor whichever comes first. 47 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 48 sion, section or subpart of this act shall be adjudged by any court of 49 competent jurisdiction to be invalid, such judgment shall not affect, 50 impair, or invalidate the remainder thereof, but shall be confined in 51 its operation to the clause, sentence, paragraph, subdivision, section 52 or subpart thereof directly involved in the controversy in which such 53 judgment shall have been rendered. It is hereby declared to be the 54 intent of the legislature that this act would have been enacted even if 55 such invalid provisions had not been included herein.S. 5856 73 A. 8518 1 § 3. This act shall take effect immediately provided, however, that 2 the applicable effective date of Subparts A through H of this act shall 3 be as specifically set forth in the last section of such Subparts. 4 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 5 sion, section or part of this act shall be adjudged by any court of 6 competent jurisdiction to be invalid, such judgment shall not affect, 7 impair, or invalidate the remainder thereof, but shall be confined in 8 its operation to the clause, sentence, paragraph, subdivision, section 9 or part thereof directly involved in the controversy in which such judg- 10 ment shall have been rendered. It is hereby declared to be the intent of 11 the legislature that this act would have been enacted even if such 12 invalid provisions had not been included herein. 13 § 3. This act shall take effect immediately provided, however, that 14 the applicable effective date of Parts A through C of this act shall be 15 as specifically set forth in the last section of such Parts; provided, 16 however that Part B of this act shall remain in full force and effect at 17 a minimum until and including June 15, 2015.