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A08518 Text:



 
                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.
                                                                   LBD12081-01-1

        S. 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 assessment

        S. 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,  not

        S. 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 are

        S. 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  to

        S. 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 associated

        S. 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 [percentage
    30  increase in total spending over the district's total spending under  the
    31  school district budget for the prior school year that exceeds the lesser
    32  of:    (i) the result obtained when one hundred twenty percent is multi-
    33  plied by the percentage increase in the consumer price index,  with  the
    34  result rounded to two decimal places; or (ii) four percent.

    35    b.  The following types of expenditures shall be disregarded in deter-
    36  mining total spending:
    37    (i) expenditures resulting from a tax certiorari proceeding;
    38    (ii) expenditures resulting from a court order or judgment against the
    39  school district;
    40    (iii) emergency expenditures that are certified by the commissioner as
    41  necessary as a result of damage to, or destruction of, a school building
    42  or school equipment;
    43    (iv) capital expenditures resulting from  the  construction,  acquisi-
    44  tion,  reconstruction,  rehabilitation  or improvement of school facili-
    45  ties, including debt service and  lease  expenditures,  subject  to  the
    46  approval of the qualified voters where required by law;

    47    (v)  expenditures  in the contingency budget attributable to projected
    48  increases in public school enrollment, which, for the  purpose  of  this
    49  subdivision,  may  include  increases  attributable to the enrollment of
    50  students attending a pre-kindergarten program established in  accordance
    51  with  section  thirty-six  hundred two-e of this chapter, to be computed
    52  based upon an increase in enrollment from the year  prior  to  the  base
    53  year  for  which  the budget is being adopted to the base year for which
    54  the budget is being adopted, provided that where the trustees  or  board
    55  of education have documented evidence that a further increase in enroll-
    56  ment  will occur during the school year for which the contingency budget


        S. 5856                            11                            A. 8518

     1  is prepared because of new construction, inception of a pre-kindergarten
     2  program, growth or similar factors,  the  expenditures  attributable  to
     3  such additional enrollment may also be disregarded;
     4    (vi)  non-recurring  expenditures  in the prior year's school district
     5  budget; and
     6    (vii) expenditures for payments to charter schools pursuant to section
     7  twenty-eight hundred fifty-six of this chapter.
     8    (vii) expenditures for self-supporting programs. For purposes of  this
     9  subparagraph,  "self-supporting  programs"  shall mean any programs that
    10  are entirely funded by private funds that cover all  the  costs  of  the
    11  program.

    12    b-1.  Notwithstanding  any  other provision of this subdivision to the
    13  contrary, in the event a state grant in aid provided to the district  in
    14  the  prior  year  is  eliminated and incorporated into a non-categorical
    15  general state aid in the current school year, the amount of  such  grant
    16  may  be  included  in  the  computation  of total spending for the prior
    17  school year, provided that the commissioner has verified that the  grant
    18  in  aid  has  been  incorporated into such non-categorical general state
    19  aid] 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-
    33  tions  set  forth  in  paragraph  (b)  of  this  subdivision, subject to

    34  approval of the qualified voters where required by law;
    35    (ii) expenditures resulting from an actual increase in enrollment over
    36  the  projected  enrollment  used  to  develop  the  contingency  budget,
    37  provided  that  where such actual enrollment is less than such projected
    38  enrollment, it shall be the duty of the trustees or board  of  education
    39  to use such excess funds to reduce taxes; and
    40    (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-
    46  ing the school year for which the contingency budget is prepared.
    47    (ii) "Consumer price index" shall mean the percentage that  represents
    48  the  average  of  the  national consumer price indexes determined by the
    49  United States department of labor, for the twelve month period preceding
    50  January first of the current year.
    51    (iii) "Current year" shall mean the calendar year in which the  school
    52  district budget is submitted for a vote of the qualified voters.
    53    (iv)  "Resident public school district enrollment shall mean the resi-
    54  dent public school enrollment of the school district as defined in para-
    55  graph n of subdivision one of section thirty-six  hundred  two  of  this

    56  chapter.

        S. 5856                            12                            A. 8518

     1    (v)  "Total  spending"  shall mean the total amount appropriated under
     2  the 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  adoption


        S. 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 of
    40  the qualified voters attending, a majority of the qualified voters pres-
    41  ent and voting, by a hand or voice vote, may determine to  take  up  the
    42  question  of  voting  the necessary funds to meet the estimated expendi-
    43  tures for a specific item separately, and the qualified  voters  present
    44  and  voting  may  increase  the  amount of any estimated expenditures or
    45  reduce the same, except for teachers' salaries, and the ordinary contin-

    46  gent 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  the


        S. 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 district

        S. 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-five

        S. 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-
    11  ty-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  and

        S. 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-
    27  third] 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,
    43  2011] 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  city

        S. 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 vacancy

        S. 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  for

        S. 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  [in
    28  excess of one hundred seventy-five thousand dollars per annum in each of
    29  the two preceding calendar years, as defined in and subject to the limi-
    30  tations  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 thousand
    35  dollars 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  in

        S. 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-
    26  five  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 in
    45  each 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 required

        S. 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  [one
     6  hundred  seventy-five  thousand  dollars  in  each  of the two preceding
     7  calendar 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  such
    14  year]  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 dollars
    23  in 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  within

        S. 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  [one
    11  hundred  seventy-five  thousand  dollars  in  each  of the two preceding

    12  calendar years, as defined in and subject to the limitations and process
    13  set 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 or
    16  more 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 two

    46  thousand 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-
    52  five  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  per
     6  month]  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 in
    15  each 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 [one
    33  hundred seventy-five thousand dollars  in  each  of  the  two  preceding
    34  calendar  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  [one
    40  hundred  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 dollars
    50  in 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 of

        S. 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  to
    43  the  limitations and process set forth in section 26-403.1 of this chap-

    44  ter]; and (2) have a maximum rent [of two thousand dollars or  more  per
    45  month]  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. Total

        S. 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-
    22  sand 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-
    28  sand 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 [of
    37  two  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 each
    47  such 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 certified

        S. 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 [one
    10  hundred seventy-five thousand dollars  in  each  of  the  two  preceding
    11  calendar  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  [one

    17  hundred  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 dollars
    27  in 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  to

        S. 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 in
    21  and subject to the limitations and process set forth in section 26-504.3
    22  of this chapter]; and (2) have a legal regulated monthly  rent  [of  two
    23  thousand  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 two
     7  thousand  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-
    13  five 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-five
    32  thousand 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  [one
    49  hundred  seventy-five  thousand  dollars  in  each  of the two preceding

    50  calendar 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  such

        S. 5856                            40                            A. 8518

     1  year]  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 dollars
    10  in 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  per
    55  annum 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 shall

        S. 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 the

        S. 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-three

        S. 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  [state
    36  institutions  and other] state agencies, and for the purpose of furnish-

    37  ing or providing centralized services to or for [state institutions  and
    38  other] 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-
    38  ant to section 1555 of the federal acquisition streamlining act of 1994,
    39  P.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  the
    22  corporation  counsel,  municipal attorney or other principal law officer
    23  to the effect that it contains the correct  text  and  that  all  proper

    24  proceedings  have been had or taken for the enactment of such local law,
    25  which  certificate  shall  constitute  presumptive   evidence   thereof,
    26  provided that any failure or omission so to certify shall not invalidate
    27  such 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 of

        S. 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.  Partial

        S. 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 population
    30  of 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-
    36  sand 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 such


        S. 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 by
    29  the family court resides in or moves to a county other than  the  county
    30  in  which  he was placed on probation, the family court which placed him
    31  on probation may transfer the proceedings to the  county  in  which  the
    32  probationer  resides or to which he has moved or may place him under the
    33  supervision of the probation service attached to  the  family  court  in
    34  which 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  in

        S. 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  subsidies


        S. 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 the

    13  office 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 commissioner
    21  within six months after the effective date of the  special  act  of  the
    22  legislature  establishing  such  agency or before the first day of July,
    23  nineteen 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 or
    41  re-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  on

        S. 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  [handicapped
    46  person]  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 a

        S. 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 projects

        S. 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  of

        S. 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  claims

        S. 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 of

        S. 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. Any


        S. 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  [division
    41  for 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 H

        S. 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 ensure
    27  that all stakeholders have been appropriately involved in the process of
    28  developing the alternate method, including where relevant  the  date  of
    29  any hearing, forum or other meeting to seek input on the alternate meth-
    30  od] 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-
    38  mation to facilitate evaluation of the effectiveness  of  the  alternate
    39  method;]
    40    (f) if] whether the state [provides] has provided financial assistance
    41  for  complying  with  the  regulatory  mandate[,  any proposed amount or
    42  percentage of such assistance which would be returned to the  state  due
    43  to 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-
    48  tion] have petitioned jointly,  [provided  that  each  local  government
    49  meets  the  requirements of paragraphs (a), (c), (d) and (g) of subdivi-
    50  sion 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  text

        S. 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  time
    49  if  it  determines,  based on the information reported pursuant to para-
    50  graph (e) of subdivision two of this section or other information avail-
    51  able to it, that the alternate method is not  effectively  carrying  out
    52  the  objectives  of  the regulatory mandate or is being implemented in a
    53  manner 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 a

        S. 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, reports

        S. 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 eliminated

        S. 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.
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