STATE OF NEW YORK ________________________________________________________________________ 7963 2021-2022 Regular Sessions IN ASSEMBLY June 4, 2021 ___________ Introduced by M. of A. GRIFFIN -- read once and referred to the Commit- tee on Corporations, Authorities and Commissions AN ACT in relation to the assessment of property owned by water-works corporations; and to amend the public authorities law and the general municipal law, in relation to creating the Nassau county water author- ity The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "Long Island water utility reform act". 3 § 2. The taxable assessed valuation of any water system special fran- 4 chise property, as defined in subdivision 17 of section 102 of the real 5 property tax law, that is used for conducting water, including, but not 6 limited to, such replacement property in form, function and utility of 7 the property being replaced, shall be subject to the following limita- 8 tions: 9 (a) the taxable assessed valuation of such property on final assess- 10 ment rolls required by law to be completed, and filed in 2021 shall not 11 exceed sixty-six percent of the taxable assessed valuation of such real 12 property on final assessment rolls required by law to be completed and 13 filed in 2020; 14 (b) the taxable assessed valuation of such property on final assess- 15 ment rolls required by law to be completed and filed in 2022 shall not 16 exceed thirty-three percent of the taxable assessed valuation of such 17 real property on final assessment rolls required by law to be completed 18 and filed in 2020; and 19 (c) such property shall be exempt from taxation on final assessment 20 rolls required by law to be completed and filed after 2022. 21 Provided, however, that notwithstanding any provision of the real 22 property tax law to the contrary, the commissioner of taxation and 23 finance shall be authorized and directed to correct the final special EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03780-10-1A. 7963 2 1 franchise assessments certified for final assessment rolls required by 2 law to be completed and filed in 2021 to take account of the provisions 3 of this section, without providing advance notice thereof or conducting 4 a hearing thereon. Upon receipt of the commissioner's corrected certif- 5 ication, the assessor shall be authorized and directed to correct the 6 2021 final assessment roll accordingly. The commissioner shall determine 7 special franchise assessments in accordance with the provisions of this 8 section for final assessment rolls required by law to be completed and 9 filed after 2021. 10 § 3. Any reduction in the taxable assessed value or removal of proper- 11 ty in any taxing jurisdiction resulting from section two of this act 12 shall not be reflected in any determinations or adjustments required 13 pursuant to articles 18 or 19 of the real property tax law; provided, 14 however, that an amount of taxable assessed value equivalent to any 15 reduction in the taxable assessed value in any class in any taxing 16 jurisdiction resulting from section two of this act shall be added to 17 the total taxable assessed value of such class in such taxing jurisdic- 18 tion, as adjusted to take into account any change in the level of 19 assessment of the class, except that no such amount shall be added to 20 the taxable assessed value of such class when determining the tax rates 21 for such class. The department of public service and the public service 22 commission shall ensure that, to the extent this section results in (a) 23 a shift in property taxes associated with a gas or electric plant owned 24 by a gas or electric corporation having gross revenues in excess of $500 25 million and serving customers residing in either New York city or Long 26 Island; or (b) a shift in payments in lieu of taxes owed by the Long 27 Island power authority, any associated rate impacts shall be borne by 28 customers of such corporation or authority residing in Nassau county, 29 and not residing in Suffolk county or New York city. 30 § 4. Any tax relief realized by section two of this act shall be used 31 to reduce current water rates and offset future water rate increases. 32 § 5. The provisions of this act shall only apply to water-works corpo- 33 rations that are subject to the jurisdiction of the New York public 34 service commission and operating in a county with a population of one 35 million or more that has a four-class property tax system. 36 § 6. Article 5 of the public authorities law is amended by adding a 37 new title 4-A to read as follows: 38 Title 4-A 39 NASSAU COUNTY WATER AUTHORITY 40 Section 1092-a. Short title. 41 1092-b. Definitions. 42 1092-c. Nassau county water authority. 43 1092-d. Powers of the authority. 44 1092-e. Miscellaneous requirements. 45 1092-f. Additional powers of the county of Nassau and towns and 46 villages within Nassau county. 47 1092-g. Acquisition by eminent domain. 48 1092-h. Charges by authority; method of collection. 49 1092-i. Survey of water resources. 50 1092-j. Bonds. 51 1092-k. Notes of the authority. 52 1092-l. Bonds as legal investments. 53 1092-m. Bonds and property of the authority exempt from taxa- 54 tion. 55 1092-n. State, county and municipalities not liable on bonds. 56 1092-o. Agreements of the state.A. 7963 3 1 1092-p. Contracts for sale of water wholesale. 2 1092-q. Audit of authority; annual report. 3 1092-r. Interest in contracts prohibited. 4 1092-s. Contracts. 5 1092-t. Actions. 6 1092-u. Expenses of hearing. 7 1092-v. Transfer of officers and employees. 8 1092-w. Severability. 9 § 1092-a. Short title. This title may be cited as the "Nassau county 10 water authority act". 11 § 1092-b. Definitions. As used or referred to in this title, unless a 12 different meaning clearly appears from the context: 13 1. The term "authority" shall mean the corporation created by section 14 one thousand ninety-two-c of this title; 15 2. The term "municipality" shall mean any county, city, town, village, 16 town water district, fire district, fire protection district, fire alarm 17 district, school district, and any other political subdivision of the 18 state; 19 3. The term "bonds" shall mean the bonds issued by the authority 20 pursuant to this title; and 21 4. The term "civil service commission" shall mean the civil service 22 commission of the county of Nassau. 23 § 1092-c. Nassau county water authority. 1. The corporate existence of 24 the Nassau county water authority shall be a body corporate and politic, 25 constituting a public benefit corporation. It shall consist of seven 26 members all of whom shall be residents of the county of Nassau and whom 27 shall be appointed as follows: four members, including the chairperson 28 of such authority, to be appointed by the county executive; two members 29 to be appointed by the majority leader of the county legislature; and 30 one member to be appointed by the minority leader of the county legisla- 31 ture. The chairperson shall serve for an initial term of five years. 32 One member appointed by the county executive shall serve for an initial 33 term of one year, one member appointed by the majority leader of the 34 county legislature shall serve for an initial term of one year, the 35 second member appointed by the majority leader of the county legislature 36 shall serve for an initial term of two years, and one member appointed 37 by the minority leader of the county legislature shall serve for an 38 initial term of two years. All remaining initial members, other than the 39 chairperson, shall serve for a term of three years. Thereafter, upon 40 expiration of the term of a member of the authority, a successor shall 41 be appointed for a term expiring three years after the expiration of the 42 term of the predecessor, and for a term expiring five years after the 43 expiration of the term of the predecessor for the chairperson. All 44 initial appointments of members of such authority shall be made by 45 December thirty-first, two thousand twenty-one. All members shall 46 continue to hold office until their successors are appointed and quali- 47 fy. Vacancies, occurring otherwise than by expiration of term of 48 office, shall be filled by appointments made for unexpired terms. 49 Appointments to fill expired and unexpired terms shall be made within 50 sixty days after the vacancy occurs. Members of the authority may be 51 removed from office for the same reasons and in the same manner as may 52 be provided by law for the removal of officers of the county. The 53 members of the authority shall receive such compensation for their 54 services as shall be fixed as specified by the county legislature and be 55 reimbursed for all expenses incurred in connection with the carrying out 56 of the purposes of this title. The powers of the authority shall beA. 7963 4 1 vested in and be exercised by the members at a meeting duly called and 2 held and five members shall constitute a quorum. No action shall be 3 taken except pursuant to the favorable vote of at least four members. 4 The authority may delegate to one or more of its members, officers, 5 agents or employees such powers and duties as it may deem proper. The 6 corporate existence of such authority shall continue until its liabil- 7 ities have been met and its bonds have been paid in full. Upon ceasing 8 to exist, all its rights and property shall pass to the county of 9 Nassau. 10 2. Neither the public service commission nor any other board or 11 commission of like character, shall have jurisdiction over the authority 12 in the management and control of its properties or operations or any 13 power over the regulation of rates fixed or charges collected by the 14 authority. 15 3. It is hereby determined and declared that the authority and the 16 carrying out of its powers, purposes and duties are in all respects for 17 the benefit of the people of the county of Nassau and the state of New 18 York, for the improvement of their health, welfare and prosperity and 19 that the said purposes are public purposes and that the authority is and 20 will be performing an essential governmental function in the exercise of 21 the powers conferred upon it by this title. 22 4. In the event that the authority does not commence supplying water 23 to retail or wholesale customers within the county of Nassau within ten 24 years of the effective date of this title, the authority shall cease to 25 exist and the provisions of this title shall be of no further force and 26 effect, subject to the terms of any bonds, notes or other debt obli- 27 gations then outstanding. 28 5. Until the authority commences supplying water to retail or whole- 29 sale customers within the county of Nassau, the authority may request 30 and shall receive, to the extent practicable, such technical assistance 31 from the department of public service as will enable the authority to 32 carry out its powers and duties under this chapter. 33 § 1092-d. Powers of the authority. 1. Except as otherwise limited by 34 this title, the authority shall have the power to: 35 (a) sue and be sued; 36 (b) have a seal and alter the same at pleasure; 37 (c) in the name of the authority, acquire, lease, hold and dispose of 38 property or any interest therein for its corporate purposes, including 39 the power to purchase prospective or tentative awards in connection with 40 the exercise of the power of condemnation hereinafter granted; 41 (d) (i) purchase, in the name of the authority, any water supply 42 system, water distribution system, including plants, works, instrumen- 43 talities or parts thereof and appurtenances thereto, lands, easements, 44 rights in land and water rights, rights-of-way, contract rights, fran- 45 chises, approaches, connections, dams, reservoirs, water mains and pipe 46 lines, pumping stations and equipment, or any other property incidental 47 to and included in such system or part thereof, and any improvements, 48 extensions and betterments, situated wholly within the county for the 49 purpose of supplying water for domestic, commercial and public purposes 50 at retail to individual consumers within the county of Nassau or at 51 wholesale in the manner provided by paragraph (g) of this subdivision as 52 a means of so acquiring for such purposes, and subject to the approval 53 of the public service commission, the authority may purchase all of the 54 stock of any existing privately owned water corporation or company, and 55 thereafter, within a reasonable time, such water corporation or company 56 shall be dissolved;A. 7963 5 1 (ii) condemn, in the name of the authority, except where located in 2 another county, any water supply system, water distribution system, 3 including plants, works, instrumentalities, or parts thereof and 4 appurtenances thereto, lands, easements, rights in land and water 5 rights, rights-of-way, contract rights, franchises, approaches, 6 connections, dams, reservoirs, water mains and pipe lines, pumping 7 stations and equipment, or any other property incidental to and included 8 in such system or part thereof, and any improvements, extensions and 9 betterments for the purpose of supplying water for domestic, commercial 10 and public purposes at retail to individual consumers within the county 11 of Nassau or at wholesale in the manner provided by paragraph (g) of 12 this subdivision. The authority shall exercise the power of condemna- 13 tion hereby granted in the manner provided by the condemnation law. In 14 the exercise of such power of condemnation, the property being condemned 15 shall be deemed, when so determined by the authority, to be for a public 16 use superior to the public use in the hands of any other person, associ- 17 ation, or corporation, provided, however, that the authority shall have 18 no power to condemn property the legal title to which is vested in a 19 municipality unless such municipality shall consent thereto; 20 (iii) construct, develop and operate any water supply system, water 21 distribution system, including plants, works, instrumentalities, or 22 parts thereof, and appurtenances thereto, dams, reservoirs, water mains, 23 pipe lines, pumping stations and equipment, or any other property inci- 24 dental to or included in such system or part thereof within the county 25 of Nassau, and to acquire, by condemnation in the manner provided by 26 this title, or by purchase, lands, easements, rights in land and water 27 rights and rights-of-way in connection therewith within such county; and 28 to own and operate, maintain, repair, improve, reconstruct, enlarge and 29 extend, subject to the provisions of this title, any of its properties 30 acquired or constructed under this title, all of which, together with 31 the acquisition of such properties are hereby declared to be public 32 purposes; 33 (iv) acquire, hold, use, lease, sell, transfer and dispose of any 34 property, real, personal or mixed, or interest therein, for its corpo- 35 rate purposes; 36 (e) purchase water in bulk from any person, private corporation or 37 municipality when necessary or convenient for the operation of such 38 water supply and distribution system. To sell water in bulk to any not- 39 for-profit corporation, public corporation, private corporation or 40 person at its regular retail rates; 41 (f) fix, alter, charge and collect rates and other charges for the use 42 of water by the inhabitants of the county or other consumers thereof, at 43 reasonable rates to be determined by the authority for the purpose of 44 providing for the payment of the expenses of the authority, the 45 construction, improvement, repair, maintenance and operation of the 46 water supply and distribution system of the authority, the payment of 47 the principal of and interest on the obligations of the authority, and 48 to fulfill the terms and provisions of any agreements made with the 49 purchasers or holders of any such obligations; 50 (g) sell water by volume to any or all municipalities or privately 51 owned public water supply and distribution systems in such county. The 52 fact that any municipality has procured or is about to procure an inde- 53 pendent source of water supply shall not prevent such municipality from 54 purchasing water from the authority; 55 (h) make contracts and execute all instruments necessary or conven- 56 ient;A. 7963 6 1 (i) make by-laws for the management and regulation of its affairs and 2 the regulation of and the charges made for water sold; 3 (j) appoint officers, agents and employees as it may require for the 4 performance of its duties, fix and determine their qualifications, 5 duties, compensations and terms of office or tenure, subject to the 6 provisions of the civil service law of the state and such rules as the 7 civil service commission may adopt and make applicable to the authority, 8 and from time to time contract for expert professional services; 9 (k) enter upon any lands, waters and premises for the purpose of 10 making surveys, soundings, drillings and examinations; 11 (l) enter into a contract or contracts with Nassau county for the 12 acquisition, construction and development of a water supply and distrib- 13 ution system, or any part or parts thereof, on behalf of a county water 14 district, and to contract for the operation and management of such coun- 15 ty water district, all as provided in article five-A of the county law 16 and article five-B of the general municipal law. Such water authority 17 shall be deemed the agent of Nassau county under any such contract. If 18 such contract shall authorize the water authority to purchase supplies 19 or equipment or to construct public works, such authority shall be 20 subject to all provisions of law to which Nassau county would be subject 21 in relation to advertising and awarding any such contracts for supplies, 22 equipment or public works; and 23 (m) do all things necessary or convenient to carry out the powers 24 expressly given or necessarily implied in this title. 25 2. (a) In exercising the powers granted by this title, the authority 26 shall not sell water in any area which is served by a water system owned 27 or operated by a municipality unless the governing board of such munici- 28 pality shall adopt a resolution requesting the authority to sell water 29 in such area. Notwithstanding any other provision of law, the authority 30 may not approve by resolution or otherwise make a final determination 31 regarding a construction project for any new structure which exceeds 32 thirty feet in height unless it holds a public hearing in the munici- 33 pality where the construction will take place not less than fifteen days 34 after notice has been given as hereinafter provided. Notice of such 35 public hearing shall be published once a week for two consecutive weeks 36 in a newspaper of general circulation in the area affected by the 37 proposed construction project, and for two consecutive weeks on the 38 website maintained by the authority. 39 (b) The board shall, when considering any purchase pursuant to subpar- 40 agraph (i) of paragraph (d) of subdivision one of this section, or any 41 condemnation pursuant to subparagraph (ii) of paragraph (d) of subdivi- 42 sion one of this section, of any assets owned by the New York American 43 Water Service Corporation as of January first, two thousand twenty, hold 44 a public hearing to solicit public comments no less than fifteen days 45 prior to the approval of such action by the board. Notice of such public 46 hearing shall be published once a week for two consecutive weeks in a 47 newspaper of general circulation in the area and for two consecutive 48 weeks on the website maintained by the authority. 49 § 1092-e. Miscellaneous requirements. 1. The authority shall not 50 refuse to sell water service to residential tenants for the sole reason 51 that the premises of such tenants receiving water service are rented. No 52 discontinuance or disconnection of any supply of water shall be carried 53 out except in the manner and upon the notice as is required of a water- 54 works corporation pursuant to subdivisions three-a, three-b and three-c 55 of section eighty-nine-b and section one hundred sixteen of the publicA. 7963 7 1 service law. The authority shall meter service to its customers within 2 two years of the effective date of this title. 3 2. Nothing contained in this title shall be construed to diminish the 4 rights of employees pursuant to a collective bargaining agreement. 5 § 1092-f. Additional powers of the county of Nassau and towns and 6 villages within Nassau county. 1. (a) In addition to any powers granted 7 by any general or special law, the county legislature, acting on behalf 8 of the county, and any town board or village board of trustees of any 9 town or village within the county of Nassau, acting on behalf of such 10 town or village, either separately or pursuant to agreements among them- 11 selves, may, from time to time, appropriate by resolution sums of money 12 to defray costs and expenses of the authority associated with the exten- 13 sion of authority mains to areas in the county within which the county 14 department of health services has documented that private wells provid- 15 ing water to home owners have become contaminated with pollutants in 16 concentrations greater than recommended by any drinking water guidelines 17 or standard established by the federal government or this state, and may 18 enter into a contract or contracts with the authority to so extend 19 authority mains. 20 (b) In areas of documented groundwater contamination where potable 21 water may be more economically supplied by a municipal water authority, 22 special district or improvement area established to provide a water 23 improvement, or by a village, than by the authority, the county legisla- 24 ture and any town board or village board of trustees within Nassau coun- 25 ty may appropriate sums of money to said municipal water authority, 26 special district or improvement area or village, and enter into a 27 contract or contracts, in accordance with this subdivision. 28 2. Persons wishing to connect to mains that have been extended to 29 areas of documented groundwater contamination with financial assistance 30 by the county, or any town or village as provided herein, shall be sole- 31 ly responsible for costs and expenses associated with connecting to said 32 mains. 33 3. Appropriations of money by the county legislature and any town 34 board or village board of trustees in the county of Nassau to the 35 authority or to a municipal water authority, special district or 36 improvement area or village within Nassau county, and any contract or 37 contracts entered into with said authority or municipal water authority, 38 special district or improvement area or village prior to the effective 39 date of this section that are consistent with the authorization in 40 subdivision one of this section are hereby legalized, validated, rati- 41 fied and confirmed. 42 § 1092-g. Acquisition by eminent domain. Notwithstanding any provision 43 of the eminent domain procedure law to the contrary, in any proceeding 44 brought by the authority pursuant to such law, title shall vest in the 45 authority and compensation shall be paid only (i) upon a decision by the 46 supreme court that compensation for the real property so condemned shall 47 be determined solely by the income capitalization method of valuation, 48 based on the actual net income as allowed by the public service commis- 49 sion, and (ii) upon such court's determination of the amount of such 50 compensation, based upon the income capitalization method, entry of the 51 final judgment, the filing of the final decree, and the conclusion of 52 any appeal or expiration of the time to file an appeal related to the 53 condemnation proceeding. If any court shall utilize any method of 54 compensation other than the income capitalization method, or if the 55 proposed compensation is more than the rate base of the assets taken in 56 condemnation as utilized by the public service commission in settingA. 7963 8 1 rates and as certified by the public service commission, the authority 2 may withdraw the condemnation proceeding without prejudice or costs to 3 any party. 4 § 1092-h. Charges by authority; method of collection. All rates, fees 5 and other charges for the use or availability of the facilities or 6 services or commodities provided or made available by the authority and 7 billed directly by the authority to the user or service recipient pursu- 8 ant to a classification of person adopted by the authority as herein 9 provided shall be a lien upon the real property upon which, or in 10 connection with which, services are provided or are made available, as 11 and from the first date fixed for a payment of such rates, fees and 12 other charges. Any such lien shall take precedence over all other liens, 13 or encumbrances, except taxes or assessments. The chief financial offi- 14 cer of the authority shall prepare and transmit to the receiver of 15 taxes, on or before the first day of November in each year, a list of 16 those properties using such facilities or for which such facilities, 17 services or commodities were provided or made available and from which 18 the payment of rates, fees and other charges are in arrears for a period 19 of ninety days or more after the last day fixed for payment of such 20 rates, fees and other charges without penalty. The list shall contain a 21 brief description of such properties, the names of the persons or corpo- 22 rations liable to pay for the same, and the amount chargeable to each, 23 including penalties and interest, as applicable, computed to December 24 thirty-first of that year. The county shall levy such sums against the 25 properties liable and shall state the amount thereof in a separate 26 column in the annual tax rolls of the county under the heading "water 27 charge". Such amounts, excluding penalties and interest imposed by the 28 county when collected by the receivers of taxes or county treasurer, 29 shall be paid over to the chief financial officer of the authority. 30 County imposed penalties and interest shall be retained by the county 31 treasurer or receiver of taxes which shall become a part of the general 32 funds of the county. All of the provisions of the real property tax law 33 of the state or the nassau county administrative code, as applicable, 34 governing enforcement and collection of unpaid taxes or assessments for 35 special improvements not inconsistent herewith shall apply to the 36 collection of such unpaid rates, rentals, fees and other charges. 37 § 1092-i. Survey of water resources. The legislature of Nassau county 38 may, by resolution, appropriate a sum of money to defray the preliminary 39 expenses of such authority so created and may thereafter appropriate 40 such sums as may be required, for the purpose of making a survey of the 41 water resources of the said county, and the preparation of a map or plan 42 for the development thereof. The authority shall, as soon as possible, 43 make a survey of the water resources of the county, and prepare a map 44 and plan for the development of the same showing in detail the proposed 45 sources of water to be developed, and the municipalities and areas which 46 may be served thereby. Application for approval of the project shall 47 then be made to the department of environmental conservation as provided 48 by title fifteen of article fifteen of the environmental conservation 49 law. If so approved, the authority shall enter into such contracts or 50 agreements as may be necessary to carry out the plan of such develop- 51 ment. The authority may, however, acquire by purchase or condemnation 52 any existing water supply and distribution system without making such 53 survey; provided, however, that the authority shall not acquire any 54 existing water supply and distribution system owned by a municipality 55 unless the governing board thereof shall adopt a resolution requesting 56 the authority to make such acquisition.A. 7963 9 1 § 1092-j. Bonds. 1. The authority shall have power and is hereby 2 authorized from time to time to issue its negotiable bonds in conformity 3 with applicable provisions of the uniform commercial code. Such bonds 4 shall be authorized by resolution of the authority and shall bear such 5 date or dates, mature at such time or times in not exceeding forty years 6 from their respective date or dates, subject to such option or options 7 of redemption, as may be provided in the resolution authorizing such 8 bonds, at par or at a price not exceeding one hundred five per centum of 9 their face value, together with accrued interest, bear interest at such 10 rate or rates that the cost to maturity of the money for any issue of 11 such bonds shall not exceed six per centum per annum, payable annually 12 or semi-annually, be in such denominations, and in such form, either 13 coupon or registered, and be executed in such manner, and be payable in 14 such medium of payment, at such place or places, and be subject to such 15 terms and conditions as such resolution or resolutions may provide. 16 2. All bonds of the authority shall be sold at public sale upon sealed 17 bids in an electronic format to the bidder who shall offer the lowest 18 interest cost to the authority to be determined by the authority. The 19 notice of sale shall be published at least once not less than ten nor 20 more than forty days before the date of sale in a newspaper designated 21 by the authority and shall call for the receipt of sealed bids and shall 22 fix the date, time and place of sale. 23 3. Notwithstanding the foregoing provisions requiring public sale, any 24 bonds of the authority may be sold by the authority upon the approval of 25 the comptroller at private sale at such price or prices as the authority 26 shall determine not exceeding the interest cost herein provided, and the 27 authority also may sell at private sale for such price or prices as the 28 authority shall determine not exceeding the interest cost herein 29 provided, any bonds authorized for the purpose of paying the cost of 30 acquiring by condemnation a privately owned public water supply and 31 distribution system, provided such bonds are sold within one year of the 32 date of completion of such condemnation and the proceedings for such 33 condemnation were commenced prior to or not more than two years from the 34 effective date of this title. 35 4. Any bonds of the authority, whether sold at public or private sale, 36 shall be sold for a price not less than ninety-six per centum of the par 37 value thereof, plus accrued interest provided always that the interest 38 cost to maturity of the money for any issue of such bonds shall not 39 exceed six per centum per annum. Such bonds may be issued for any corpo- 40 rate purpose of the authority. 41 5. Any resolution or resolutions authorizing any bonds may contain 42 provisions, which shall be a part of the contract with the holders of 43 the bonds, as to: 44 (a) pledging the revenue or water rents charged by the authority to 45 secure the payment of the bonds; 46 (b) the setting aside of reserves or sinking funds, and the regulation 47 and disposition thereof; 48 (c) limitations on the right of the authority to restrict and regulate 49 the use of water and to alter or reduce rates or charges for the use of 50 water; 51 (d) limitations on the issuance of additional bonds; 52 (e) the application of funds and the safeguarding of funds on hand or 53 on deposit, including the requiring of the giving of security for depos- 54 it of such funds by depository banks or trust companies. Unless other- 55 wise provided in said resolution, all deposits of funds of the authority 56 shall be secured in the manner provided by law for securing deposits ofA. 7963 10 1 county moneys. All banks and trust companies are authorized to give 2 such security for such deposits; and 3 (f) defining the acts or omissions to act which shall constitute a 4 default in the obligations and duties of the authority to the bondhold- 5 ers and providing the rights and remedies of the bondholders in the 6 event of such default, including as a matter of right the appointment of 7 a receiver; provided, however, that such rights and remedies shall be 8 not inconsistent with the general laws of this state. 9 6. The authority shall have power from time to time whenever it deems 10 refunding expedient, to refund any bonds by the issuance of new bonds, 11 whether the bonds to be refunded have or have not matured, and may issue 12 bonds partly to refund bonds then outstanding and partly for any of its 13 corporate purposes. Refunding bonds may be delivered by the authority to 14 the purchasers thereof at any time prior to the date of maturity or 15 redemption date of the bonds proposed to be refunded, if the authority 16 shall determine that such action shall be financially sound and advanta- 17 geous to the authority. The rate or rates of interest of the refunding 18 bonds shall not be limited by the rate or rates of interest borne by any 19 of the bonds to be refunded by such bonds, but all of the provisions of 20 this section with reference to the sale of bonds of the authority, and 21 the interest cost of the money raised by the sale thereof, shall apply 22 to such refunding bonds. 23 7. Except as may be otherwise expressly provided by the authority, 24 every issue of bonds by the authority shall be general obligations paya- 25 ble out of any moneys, earnings or revenues of the authority, subject 26 only to any agreements with the holders of particular bonds pledging any 27 particular moneys, earnings or revenues. 28 8. Neither the members of the authority nor any person executing the 29 bonds shall be personally liable on the bonds or be subject to any 30 personal liability or accountability by reason of the issuance thereof. 31 The authority shall have the power, out of any funds available therefor, 32 to purchase (as distinguished from the power of redemption hereinabove 33 provided) any bonds issued by it at a price of not more than the princi- 34 pal amount thereof or the redemption price at which the bonds may be 35 redeemed at the next ensuing redemption date and accrued interest. All 36 bonds so purchased shall be cancelled. 37 9. Any provision of the uniform commercial code to the contrary 38 notwithstanding, any pledge of or other security interest in revenues, 39 moneys, accounts, contract rights, general intangibles or other personal 40 property made or created by the authority shall be valid, binding and 41 perfected from the time when such pledge is made or other security 42 interest attaches without any physical delivery of the collateral or 43 further act, and the lien of any such pledge or other security interest 44 shall be valid, binding and perfected against all parties having claims 45 of any kind in tort, contract or otherwise against the authority irre- 46 spective of whether or not such parties have notice thereof. No instru- 47 ment by which such a pledge or security interest is created nor any 48 financing statement need be recorded or filed. 49 § 1092-k. Notes of the authority. The authority shall have the power 50 and is hereby authorized to issue negotiable bond anticipation notes or 51 revenue anticipation notes in conformity with applicable provisions of 52 the uniform commercial code and may renew the same from time to time but 53 the maximum maturity of any such note, including renewals thereof, shall 54 not exceed five years from the date of issue of such original note. Such 55 notes shall be paid from any moneys of the authority available therefor 56 and not otherwise pledged or from the proceeds of sale of the bonds ofA. 7963 11 1 the authority in anticipation of which they were issued, or, subject to 2 the contractual rights of the holders of any bonds or notes then 3 outstanding, from the proceeds of the sale of any other bonds of the 4 authority. The notes shall be issued in the same manner as the bonds and 5 the resolution or resolutions authorizing the same may contain any 6 provisions, conditions or limitations which the bonds or a bond resol- 7 ution of the authority may contain. Such notes may be sold at public or 8 private sale at not less than par and shall bear interest at a rate not 9 exceeding six percent per annum. The provisions of sections one thousand 10 ninety-two-l, one thousand ninety-two-m, one thousand ninety-two-n and 11 one thousand ninety-two-o of this article relating to bonds of the 12 Nassau county water authority shall apply with the same full force and 13 effect to bond anticipation notes and revenue anticipation notes of the 14 authority herein authorized to be issued. 15 § 1092-l. Bonds as legal investments. The bonds herein authorized are 16 hereby made securities in which all public officers and bodies of this 17 state and all municipalities and municipal subdivisions, all insurance 18 companies and associations and other persons carrying on an insurance 19 business, all banks, bankers, trust companies, savings banks and savings 20 associations, including savings and loan associations, building and loan 21 associations, investment companies and other persons carrying on a bank- 22 ing business, and all other persons whomsoever, except as hereinafter 23 provided, who are now or may hereafter be authorized to invest in bonds 24 or other obligations of the state, may properly and legally invest funds 25 including capital in their control or belonging to them, provided that, 26 notwithstanding the provisions of any other general or special law to 27 the contrary, such bonds shall not be eligible for the investment of 28 funds including capital, of trusts, estates or guardianships under the 29 control of individual administrators, guardians, executors, trustees and 30 other individual fiduciaries. The bonds are also hereby made securities 31 which may be deposited with and may be received by all public officers 32 and bodies of this state and all municipalities and municipal subdivi- 33 sions for any purpose for which the deposit of bonds or other obli- 34 gations of this state is now or may hereafter be authorized. 35 § 1092-m. Bonds and property of the authority exempt from taxation. 36 It is hereby determined that the creation of the authority and the 37 carrying out of its corporate purposes is in all respects for the bene- 38 fit of the people of the county, and is a public purpose, and the 39 authority shall be regarded as performing a governmental function in the 40 exercise of the powers conferred upon it by this title and shall not be 41 required to pay any taxes, special ad valorem levies or special assess- 42 ments upon any property owned by it or under its jurisdiction, control 43 or supervision or upon its activities, or any filing, recording or 44 transfer taxes in relation to instruments filed, recorded or transferred 45 by it or on its behalf. Any bonds or notes issued pursuant to this 46 title, together with the income therefrom shall be exempt from taxation, 47 except for transfer and estate taxes. The revenues, monies and other 48 properties and the activities of the authority shall be exempt from 49 taxes and governmental fees or charges, whether imposed by the state or 50 any municipality, including real estate taxes, franchise taxes or other 51 excise taxes. The state of New York covenants with the purchasers and 52 with all subsequent holders and transferees of bonds and notes issued by 53 the authority pursuant to this title, in consideration of the acceptance 54 of and payment for the bonds and notes, that the bonds and notes of the 55 authority issued pursuant to this title and the income therefrom, and 56 all moneys, funds and revenues pledged to pay or secure the payment ofA. 7963 12 1 such bonds and notes, shall at all times be free from taxation except 2 for transfer and estate taxes. 3 § 1092-n. State, county and municipalities not liable on bonds. The 4 bonds of the authority shall not be a debt of the state of New York or 5 of the county or of any municipality in the county, and neither the 6 state nor the county nor any municipality in the county shall be liable 7 thereon, nor shall they be payable out of any funds other than those of 8 the authority. 9 § 1092-o. Agreements of the state. The state of New York does pledge 10 to and agree with the holders of the bonds that the state will not limit 11 or alter the rights hereby vested in the authority to acquire, 12 construct, maintain, operate, reconstruct and improve the properties, to 13 establish and collect the revenues, rates, rentals, fees and other 14 charges referred to in this title and to fulfill the terms of any agree- 15 ments made with the holders of the bonds, or in any way impair the 16 rights and remedies of the bondholders, until the bonds, together with 17 interest thereon, interest on any unpaid installments of interest, and 18 all costs and expenses in connection with any action or proceeding by or 19 on behalf of the bondholders, are fully met and discharged. 20 § 1092-p. Contracts for sale of water wholesale. Any municipality is 21 hereby authorized to contract with the authority for the purchase of 22 water from the authority at wholesale for a period not exceeding thirty 23 years except that, in the case of a fire protection district or a fire 24 alarm district such period shall not exceed five years, and in the case 25 of a fire district, such period shall not exceed ten years. Such 26 contract shall provide that the liability of such purchaser for the 27 payment of any sums pursuant to such contract shall arise only at such 28 time as such water has been actually delivered to such purchaser. Such 29 contract shall state the rates, fees or charges to be paid for such 30 water, shall provide for the adjustment thereof either by increase or 31 decrease from time to time by mutual agreement of the parties thereto, 32 subject however to any provisions contained in any resolution of the 33 authority authorizing obligations relating to the imposition of rates, 34 fees or charges and the revision or adjustment thereof. Prior to the 35 execution of such contract the governing board of any such purchaser 36 shall call a public hearing to consider the subject matter and the 37 desirability of the execution of the proposed contract and shall publish 38 notice thereof in a newspaper of general circulation in the territorial 39 boundaries of such purchaser, at least once and not less than fifteen 40 days before the date of such public hearing. Such notice shall briefly 41 state the terms of the proposed contract, the date and place of the 42 public hearing and further state that at such time and place the govern- 43 ing board will hear all persons interested. If, after considering the 44 evidence adduced at such hearing, such governing body shall conclude 45 that the execution of such contract is in the public interest, it may 46 authorize the execution thereof by the adoption of a resolution to such 47 effect. 48 § 1092-q. Audit of authority; annual report. In conformity with the 49 provisions of section five of article ten of the constitution, the 50 accounts of the authority shall be subject to the supervision of the 51 state comptroller and such state comptroller and his legally authorized 52 representatives are hereby authorized and empowered from time to time to 53 examine the accounts and the books of the authority, including its 54 receipts, disbursements, contracts, leases, sinking funds, investments 55 and any other matters relating to its financial standing. The authority 56 shall annually submit to the governor and to the state legislature andA. 7963 13 1 also to the legislature of Nassau county a detailed report pursuant to 2 the provisions of section twenty-eight hundred of this chapter. 3 § 1092-r. Interest in contracts prohibited. It shall be a misdemeanor 4 for any of the members of the authority, or any officer, agent, servant 5 or employee thereof, employed or appointed by them, to be in any way or 6 manner interested directly or indirectly in the furnishing of work, 7 materials, supplies or labor, or in any contract therefor which the 8 authority is empowered by this title to make. 9 § 1092-s. Contracts. All contracts, or orders, for work, material or 10 supplies performed or furnished in connection with construction shall be 11 awarded by the authority pursuant to resolution. Such contracts, or 12 orders, for work, material or supplies needed for any particular purpose 13 involving an expenditure of more than five thousand dollars shall be 14 awarded only after inviting sealed bids or proposals therefor. The 15 notice inviting sealed proposals shall be published at least once in a 16 newspaper or trade paper selected by the authority for such purpose, 17 such publication to be at least ten days before the date for the receipt 18 of bids. If the authority shall not deem it for the interest of the 19 authority to reject all bids, it shall award the contract to the lowest 20 bidder, unless the authority shall determine that it is for the public 21 interest that a bid other than the lowest bid should be accepted. In any 22 contract for work, material or supplies, there shall be inserted in the 23 discretion of the authority a provision that additional work may be done 24 or material or supplies furnished for the purpose of completing such 25 contract at an expense not exceeding fifteen per centum of the amount of 26 such contract if such additional work, material or supplies shall be 27 ordered by the authority. The bidder whose bid is accepted shall give 28 security for the faithful performance of the contract, and such other 29 security as the authority may require, and may be required to maintain 30 for such period as shall be stipulated any construction done under the 31 contract, all in the manner prescribed and required by the authority; 32 and the sufficiency of such security shall, in addition to the justi- 33 fication and acknowledgment, be approved by the authority. All bids or 34 proposals shall be publicly opened by the authority or its duly author- 35 ized agent. If the bidder whose bid has been accepted after advertising 36 shall neglect or refuse to accept the contract within five days after 37 written notice that the same has been awarded to him on his bid or 38 proposal, or, if he accepts but does not execute the contract and give 39 proper security, the authority shall have the right to declare such 40 bidder's deposit forfeited, and thereupon it shall be readvertised and 41 relet as above provided. In case any work shall be abandoned by any 42 contractor, the authority may, if the best interest of the authority be 43 thereby served, adopt on behalf of the authority any or all subcontracts 44 made by such contractor for such work and all such subcontractors shall 45 be bound by such adoption if made; and the authority shall, in the 46 manner provided herein, readvertise and relet the work specified in the 47 original contract exclusive of so much thereof as shall be provided for 48 in the subcontract or subcontracts so adopted. No bid shall be accepted 49 from or any contracts awarded to any person or corporation who is in 50 arrears to the authority, or the county of Nassau upon any debt or 51 contract, or is a defaulter as surety or otherwise upon any obligation 52 of the authority, or the county. Every contract involving an expendi- 53 ture of more than five thousand dollars when made and entered into as 54 herein provided for shall be executed in duplicate, one copy of which 55 shall be held by the authority and one copy of which shall be delivered 56 to the contractor. Upon the adoption of a resolution by a vote of two-A. 7963 14 1 thirds of all the members of the authority stating that, for reasons of 2 efficiency or economy, there is need for standardization, purchase 3 contracts for a particular type or kind of equipment, material or 4 supplies of more than five thousand dollars may be awarded by the 5 authority to the lowest responsible bidder furnishing the required secu- 6 rity after advertisement for sealed bids therefor in the manner provided 7 in this section. Such resolution shall contain a full explanation of the 8 reasons for its adoption. 9 § 1092-t. Actions. In any case founded upon tort, a notice of claim 10 shall be required as a condition precedent to the commencement of an 11 action or special proceeding against the authority or any officer, 12 appointee or employee thereof, and the provisions of section fifty-e of 13 the general municipal law shall govern the giving of such notice. 14 Except in an action for wrongful death, an action against the authority 15 for damages for injuries to real or personal property, or for the 16 destruction thereof, or for personal injuries, alleged to have been 17 sustained, shall not be commenced more than one year and ninety days 18 after the cause of action therefor shall have accrued. An action against 19 the authority for wrongful death shall be commenced in accordance with 20 the notice of claim and time limitation provisions of title eleven of 21 article nine of this chapter. 22 § 1092-u. Expenses of hearing. The expenses of any hearing, determi- 23 nation or other action which the provisions of this title require of the 24 department of environmental conservation shall be paid by the applicant. 25 Bills for such expenses shall be certified by said department to the 26 applicant and paid by the applicant directly to the claimant within 27 thirty days of the date of such certification. 28 § 1092-v. Transfer of officers and employees. 1. Any public officer or 29 employee under civil service, selected by the authority may, with the 30 consent of the commission, board, department or municipality by which he 31 or she has been employed, be transferred to the authority and shall be 32 eligible for such transfer and appointment without examination to compa- 33 rable offices, positions and employment under the authority. The salary 34 or compensation of any such officer or employee shall after such trans- 35 fer be paid by the authority, but notwithstanding the provisions of this 36 title, any such officers or employees so transferred to the authority, 37 pursuant to the provisions of this section, who are members of or bene- 38 ficiaries under any existing pension or retirement system, shall contin- 39 ue to have all rights, privileges, obligations and status with respect 40 to such fund system or systems as are now prescribed by law, but during 41 the period of their employment by the authority, all contributions to 42 any pension or retirement fund or system to be paid by the employer on 43 account of such officers and employees, shall be paid by the authority; 44 and all such officers and employees who have been appointed to positions 45 under the rules and classifications of the civil service commission 46 shall have the same status with respect thereto after transfer to the 47 authority as they had under their original appointments. The appointment 48 and promotion of all employees of the authority shall be made in accord- 49 ance with the provisions of the civil service law and such rules as the 50 civil service commission may adopt and make applicable to the authority. 51 2. It is hereby declared that in the interest of efficiency and insofar 52 as it may be practicable, all employees of a municipality engaged in the 53 operation of any property or properties, except at an executive capaci- 54 ty, at the time such property or properties shall have been acquired by 55 the authority pursuant to the provisions of this title, shall become 56 employees of the authority.A. 7963 15 1 § 1092-w. Severability. If any section, clause or provision in this 2 title shall be held by a competent court to be unconstitutional or inef- 3 fective in whole or in part, to the extent that it is not unconstitu- 4 tional or ineffective it shall be valid and effective, and no other 5 section, clause or provision shall on account thereof be deemed invalid 6 or ineffective. Insofar as the provisions of this title are inconsistent 7 with the provisions of any other act, general or special, or of any 8 local law of any city, the provisions of this title shall be control- 9 ling. Nothing contained in this title shall be held to alter or abridge 10 the powers and duties of the department of health or of the department 11 of environmental conservation over water supply matters. 12 § 7. Section 239-bb of the general municipal law is amended by adding 13 a new subdivision 12 to read as follows: 14 12. Notwithstanding any other provision of law to the contrary, the 15 entity created pursuant to title four-A of article five of the public 16 authorities law shall be eligible for four million two hundred ten thou- 17 sand five hundred twenty-six dollars in each state fiscal year beginning 18 with state fiscal year two thousand twenty-one - two thousand twenty- 19 two; provided however, that such monies shall be derived from the appro- 20 priation dedicated to the matching funds program pursuant to subdivision 21 eight of this section; and provided further, that such funding for such 22 entity shall not be subject to the requirements of subdivision eight of 23 this section related to savings. 24 § 8. This act shall take effect immediately.