STATE OF NEW YORK
        ________________________________________________________________________

                                          8573

                   IN ASSEMBLY

                                    January 11, 2024
                                       ___________

        Introduced  by  M. of A. THIELE, PAULIN -- read once and referred to the
          Committee on Local Governments

        AN ACT to amend the village law and the executive law,  in  relation  to
          establishing  the  village  incorporation  commission;  and to amend a
          chapter of the laws of 2023  amending  the  village  law  relating  to
          establishing  the  village  incorporation  commission  as  proposed in
          legislative bills numbers S. 7537 and A.  7761,  in  relation  to  the
          effectiveness thereof

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 2-202 of the village law is amended by adding a new
     2  subdivision 2 to read as follows:
     3    2. Study attached to the petition. The study to be submitted shall  be
     4  a  study prepared by a third-party jointly selected by the petitioner or
     5  petitioners and the supervisors of the town  or  towns  which  shall  be
     6  confirmed  in writing by the petitioner or petitioners and clerks of the
     7  town or towns, or a study prepared pursuant to paragraph f  of  subdivi-
     8  sion  two  of  section 2-260 of this article; and provided further, that
     9  the department of state shall post such study on its website within  ten
    10  days  of  receiving  the  study from the petitioner or petitioners. Such
    11  study shall be paid for by the petitioner or petitioners except in cases
    12  where an appropriation has been provided to pay for the study.
    13    § 2. Paragraph c of subdivision 1 of section 2-202 of the village  law
    14  is amended by adding a new subparagraph 3 to read as follows:
    15    (3)  Study  of proposed village and surrounding town or towns. A study
    16  that addresses the fiscal, service, and taxation interests of the  popu-
    17  lation  which  would  constitute  the  residents of such territory to be
    18  incorporated as a village, as indicated in clause (a) of  this  subpara-
    19  graph,  and  that  provides for an impact assessment that shall evaluate
    20  the fiscal and operational effects  of  incorporation  of  the  proposed
    21  village  on  the  surrounding town or towns wherein the village would be
    22  incorporated, as indicated in clause (b)  of  this  subparagraph.    The
    23  study  shall include a certification that it sets forth all the elements
    24  required by this section.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11710-14-4

        A. 8573                             2

     1    (a) Fiscal, service, and taxation assessment of proposed  village.  An
     2  assessment  of  the fiscal, service, and taxation interests of the popu-
     3  lation which would constitute the residents  of  such  territory  to  be
     4  incorporated  as  a  village, must include the following elements of the
     5  proposed village:
     6    (i)  Inventory. List the number of parcels by property classification.
     7  For each such property, list the full  valuation  and  taxable  assessed
     8  value as appearing on the most recent applicable final assessment roll.
     9    (ii)  Taxes.  Provide  a  fiscal  estimate  of all taxes that could be
    10  collected for the structures and places listed  on  the  inventory  this
    11  clause requires to be developed. The town or towns' current property tax
    12  rate and assessment should be used in developing the fiscal estimate.
    13    (iii)  Revenue.  Other  than  taxes, list all other sources of revenue
    14  expected to be generated for the area of the proposed village.
    15    (iv) Operations. Provide an estimate of what it would cost to  operate
    16  the  proposed  village  listing expenditures required in connection with
    17  the appointment or hiring of personnel to provide the  services  identi-
    18  fied pursuant to item (v) of this clause, the holding of meetings of the
    19  board of trustees, and designating an official newspaper.
    20    (v)  Services.  List  the municipal services currently provided within
    21  the area of the proposed village and how  such  services  are  provided,
    22  list  all  municipal services proposed to be provided upon incorporation
    23  of the proposed village, and how such municipal services are expected to
    24  be provided. Municipal services may include, but  are  not  limited  to:
    25  police;  fire;  water;  sewer;  enforcement of any planning, zoning, and
    26  land use regulations; and, enforcement of the  New  York  state  uniform
    27  fire  prevention  and building code and energy conservation construction
    28  code.
    29    (b) Impact assessment and study  of  surrounding  town  or  towns.  An
    30  impact  assessment  that provides an evaluation of the fiscal and opera-
    31  tional effects of incorporation of the proposed village on the surround-
    32  ing town or towns  wherein  the  village  would  be  incorporated,  must
    33  include the following elements:
    34    (i)  Revenue and expenditures. List the estimated taxes, other revenue
    35  and expenditures for the area of  the  town  or  towns  outside  of  the
    36  proposed village.
    37    (ii) Fiscal impact. A description of the manner and means by which the
    38  residents  of the area of the town or towns outside the proposed village
    39  will continue to be furnished municipal services following the village's
    40  incorporation, an estimation of any change in the property tax rate  for
    41  the area of the town or towns outside of the proposed village to contin-
    42  ue  such services. Provide such estimate with respect to the area of the
    43  town or towns outside the proposed village services only.
    44    (iii) Economic impact. Assess the potential  economic  impact  to  the
    45  town or towns outside of the proposed village upon incorporation of such
    46  village.
    47    (iv) Land use impact. Assess the potential impact to the town or towns
    48  outside  of the proposed village from the loss of land use, planning and
    49  zoning control within the area proposed to be incorporated.
    50    (c) Submission. The study must be  submitted  to  the  commission  and
    51  filed in the manner provided by this subdivision.
    52    § 3. Paragraph f of subdivision 1 of section 2-202 of the village law,
    53  as  amended  by  a  chapter of the laws of 2023 amending the village law
    54  relating  to  establishing  the  village  incorporation  commission   as
    55  proposed in legislative bills numbers S. 7537 and A. 7761, is amended to
    56  read as follows:

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     1    f.  Filing  and  deposit. (1) Filing. The original petition, the study
     2  and all exhibits and certifications required by this  section  shall  be
     3  filed with the [village incorporation commission established pursuant to
     4  section 2-259 of this article] commission. Duplicate originals, photoco-
     5  pies  or other similar reproductions of the original petition, the study
     6  and all exhibits and certifications required by this  section  shall  be
     7  filed  with  the  town  clerk  of each town in which any portion of such
     8  territory is located.
     9    (2) Deposit. At the time of filing of  the  petition  there  shall  be
    10  deposited with the department of state, on behalf of the commission, the
    11  sum  of  six thousand dollars to pay the cost of posting, publishing and
    12  serving required notices, stenographic services and services of  inspec-
    13  tors of election in the event incorporation is not effected.
    14    §  4. Section 2-204 of the village law, as amended by a chapter of the
    15  laws of 2023 amending the  village  law  relating  to  establishing  the
    16  village  incorporation  commission  as  proposed  in  legislative  bills
    17  numbers S. 7537 and A. 7761, is amended to read as follows:
    18    § 2-204 Notice of hearing. [Within twenty days  after  the  filing  of
    19  such  petition  or  copies thereof, the village incorporation commission
    20  established pursuant to section 2-259 of this article shall] 1. No later
    21  than three days after the filing of a petition, the study and all exhib-
    22  its and certifications required by section  2-202  of  this  article  or
    23  copies  thereof, the commission shall direct the town clerk of each town
    24  in which any portion of such territory is located to cause to be  posted
    25  in [five] six public places of the portion of the territory of each town
    26  where  such  proposed  village  is to be located [in the territory where
    27  such village shall be incorporated] and also to be  published  at  least
    28  twice  in the newspaper or newspapers designated pursuant to subdivision
    29  eleven of section sixty-four of the town law, a [joint] notice issued by
    30  the commission: that a petition for the incorporation of the village  of
    31  (naming  it) has been received; that at a place in such territory and on
    32  a day, not less than [twenty] one hundred nor  more  than  [thirty]  one
    33  hundred  twenty days after the date of the posting and first publication
    34  of such notice, which date and place shall be specified therein, a hear-
    35  ing will be had upon such petition; that such petition,  the  study  and
    36  all  exhibits and certifications required by section 2-202 of this arti-
    37  cle, will be available for public inspection in the office of each  town
    38  clerk  and  on  the website of the department of state until the date of
    39  such hearing; that the purpose of the hearing is to consider [the  legal
    40  sufficiency  of the petition] whether the village incorporation petition
    41  meets all requirements of this article; that objections to  the  [legal]
    42  sufficiency of the petition must be in writing and signed by one or more
    43  of  the residents of such town; and that any group of persons having one
    44  or more objections in common may make designation in writing and  signed
    45  by  them  of at least one but no more than three persons giving the full
    46  names and addresses on whom and at which addresses all  papers  required
    47  to  be  served in connection with the proceeding for incorporation shall
    48  be served. Within five days of receiving direction from  the  commission
    49  pursuant  to this subdivision, the town clerk or clerks shall provide to
    50  the commission a list of the six locations where such notices are to  be
    51  posted.  Should the commission object to any such locations submitted by
    52  the town clerk or clerks, the commission shall, no later than seven days
    53  after receipt of such list of locations, direct the town clerk or clerks
    54  to post such notices in alternative locations designated by the  commis-
    55  sion.  The  postings  of such notices shall be made by the town clerk or
    56  clerks no later than twenty days after the filing of such petition,  the

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     1  study  and  all exhibits and certifications required by section 2-202 of
     2  this article or copies thereof. A majority of such designees must reside
     3  in such town or towns. In the absence of any other suitable place,  such
     4  hearing  shall  be  held  in  a school building, if any, located in such
     5  territory. If such territory is located in more than one town [the hear-
     6  ing shall be noticed and publicized as  a  joint  hearing  of  all  such
     7  towns]  that  fact  shall  be included in the notice of hearing. For the
     8  purposes of this section,  in  the  event  that  the  town  maintains  a
     9  website, one of the posting requirements required by this section may be
    10  fulfilled by posting such information on the town's website.
    11    2.  The  department of state shall post the study on the department of
    12  state's website beginning at such time as required by section  2-202  of
    13  this  article at least until the procedures pursuant to section 2-234 or
    14  2-236 of this article are satisfied, whichever occurs sooner.
    15    § 5. Section 2-206 of the village law, as amended by a chapter of  the
    16  laws  of  2023  amending  the  village  law relating to establishing the
    17  village  incorporation  commission  as  proposed  in  legislative  bills
    18  numbers S. 7537 and A. 7761, is amended to read as follows:
    19    § 2-206 Proceeding on hearing. 1.  The [village incorporation] commis-
    20  sion  [established pursuant to section 2-259 of this article] shall meet
    21  at the time and place specified in such notice and shall hear objections
    22  which may be presented as to the incorporation based  upon  any  of  the
    23  following grounds:
    24    a. That a person signing such petition was not qualified therefor;
    25    b.  If  it is alleged that the petition is submitted on the basis that
    26  the persons signing such petition constitute  twenty  per  cent  of  the
    27  residents  in such territory qualified to vote for officers of a town in
    28  which all or part of such territory is located, that such allegation  is
    29  false;
    30    c. That such territory is part of a city or village;
    31    d.  That  if  such  territory is less than an entire town, it contains
    32  more than five square miles and the limits of  such  territory  are  not
    33  coterminous  with  the  entire  boundaries  of  one  school,  fire, fire
    34  protection, fire alarm, town special or town  improvement  district  and
    35  the limits of such territory are not coterminous with parts of the boun-
    36  daries  of more than one school, fire, fire protection, fire alarm, town
    37  special or town improvement district, all of which are wholly  contained
    38  within such limits and within one town;
    39    e. That such territory does not contain a population of at least [two]
    40  one thousand five hundred regular inhabitants;
    41    f.  That  the petition in any other specified respect does not conform
    42  to the requirements of this article; [or]
    43    g. That a study [has not been conducted on the  fiscal,  service,  and
    44  taxation  interests  of  the population which would constitute the resi-
    45  dents of such village or the population which constitutes the  residents
    46  of such town in which such village would be established; or
    47    h.  That  the  establishment  of  such  village  is not in the fiscal,
    48  service, and taxation interests of the population which would constitute
    49  the residents of such village or the population  which  constitutes  the
    50  residents  of  such town in which such village would be established.] as
    51  required by section 2-202 of this article has  not  been  submitted  and
    52  made  available to the public for public review for at least ninety days
    53  before the hearing required by this article;
    54    h. That the proposed village is incapable of providing services;
    55    i. That the tax revenue collected by such proposed village  would  not
    56  sufficiently  defray  the  cost  of municipal services at a property tax

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     1  rate that favorably compares to the property tax rate  of  the  town  or
     2  towns; or
     3    j.  That the incorporation would increase tax burdens on those located
     4  in the town or towns within which such proposed village would be  estab-
     5  lished.
     6    2. The commission shall conduct the hearing.
     7    3.  All  objections must be in writing and signed by one or more resi-
     8  dents qualified to vote for town offices a town in which all or part  of
     9  such  territory  of  the  proposed  village  is located. Testimony as to
    10  objections may be taken at the hearing which shall be reduced to writing
    11  and subscribed by those testifying. [The burden of proof shall be on the
    12  objectors.] All written objections and signed  testimony  shall  clearly
    13  state the name and address of the objector.
    14    4.  The  hearing  may be adjourned but must be concluded within twenty
    15  days from the date fixed in the notice of hearing.
    16    5. The town clerk and any other official or employee of each  town  in
    17  which  any portion of such territory is located shall assist the commis-
    18  sion in verifying the validity of the petition in  connection  with  any
    19  objection raised pursuant to paragraph a or b of subdivision one of this
    20  section.
    21    §  6. Section 2-208 of the village law, as amended by a chapter of the
    22  laws of 2023 amending the  village  law  relating  to  establishing  the
    23  village  incorporation  commission  as  proposed  in  legislative  bills
    24  numbers S. 7537 and A. 7761, is amended to read as follows:
    25    § 2-208 Decision [as] to  commence  village  [establishment]  incorpo-
    26  ration election. 1.  Within ten days after such hearing is concluded the
    27  [village  incorporation]  commission  [established  pursuant  to section
    28  2-259 of this article] shall determine  whether  the  petition  complies
    29  with the requirements of this article and shall make and sign a decision
    30  as  to whether a village incorporation shall proceed to election [pursu-
    31  ant to the criteria established in section 2-259 of this article].   The
    32  commission's decision shall be based on an evidentiary record consisting
    33  of  the  incorporation  petition, the study and all exhibits and certif-
    34  ications required by section 2-202 of this article, and  any  objections
    35  made  pursuant  to  section 2-206 of this article. If the members of the
    36  commission cannot agree, the decision shall be deemed to be  adverse  to
    37  the  petition.  If the decision be adverse to the petition, the decision
    38  shall contain a brief statement of the  reasons  on  which  the  adverse
    39  decision  is based or the reasons on which the members of the commission
    40  determined not to proceed to a village incorporation election.
    41    2. The original copy of the decision, copies  of  the  notice  of  the
    42  hearing  together  with  affidavits  of posting and publishing same, the
    43  written objections and the minutes of proceedings taken on  the  hearing
    44  including  signed  testimony  shall  be  filed  by the commission within
    45  fifteen days after the hearing is concluded, with the town clerk of  the
    46  same  town  in which the original copy of the petition was filed and the
    47  secretary of the state.  Duplicate copies of the said  papers  shall  be
    48  filed  with  the  town  clerks of all [other] towns in which any part of
    49  such territory is located.
    50    3. If no proceeding be instituted to review such decision within thir-
    51  ty days after such filing of the original  copy  thereof,  the  decision
    52  shall be final and conclusive. In the event that the decision is adverse
    53  to  the  petition,  a  new proceeding for incorporation may be commenced
    54  immediately.
    55    § 7. Subdivisions 1 and 5 and paragraph a of subdivision 4 of  section
    56  2-210  of  the village law, subdivision 1 as amended by a chapter of the

        A. 8573                             6

     1  laws of 2023 amending the  village  law  relating  to  establishing  the
     2  village  incorporation  commission  as  proposed  in  legislative  bills
     3  numbers S. 7537 and A. 7761, are amended to read as follows:
     4    1. The decision of the [village incorporation] commission [established
     5  pursuant to section 2-259 of this article] as to the petition and wheth-
     6  er a village incorporation shall proceed to election shall be subject to
     7  judicial  review  in  [the  manner  provided in] accordance with article
     8  seventy-eight of the civil practice law and rules. [Such proceeding  may
     9  be brought on the ground or grounds that said decision is illegal, based
    10  on  insufficient evidence, or contrary to the weight of evidence. If the
    11  court determines that additional testimony or evidence is necessary  for
    12  the proper disposition of the matter it may take such evidence or testi-
    13  mony  or  appoint a referee to take such evidence or testimony as it may
    14  direct and report the same to the court with his findings  of  fact  and
    15  conclusions  of law which shall constitute a part of the proceeding upon
    16  which the determination of the  court  shall  be  made.  The  court  may
    17  reverse  or  affirm  on  the  basis of law and fact as determined by the
    18  court.]
    19    a. Notice of such a proceeding in  accordance  with  article  seventy-
    20  eight  of  the civil practice law and rules shall be given to the secre-
    21  tary and the town clerk of each town in which any part of such territory
    22  is located[. He], each of whom shall cause same to  be  filed  in  [his]
    23  their office.
    24    5.  The successful party to any such proceeding shall file a certified
    25  copy of the decision and order in the office of the clerk of  each  town
    26  in which any part of such territory is located and with the secretary of
    27  state  who shall give notice of the receipt of the decision and order to
    28  the commission within three days.
    29    § 8. Section 2-212 of the village law is amended to read as follows:
    30    § 2-212 Right to election. 1. An election to determine the question of
    31  incorporation shall be held no later than  [forty]  one  hundred  eighty
    32  days and no earlier than ninety days after the first occurring of either
    33  of the following two events:
    34    a.  The expiration of thirty days from the filing of the original of a
    35  decision [sustaining the legal  sufficiency  of  the  petition]  by  the
    36  commission  to  proceed  to a village incorporation election pursuant to
    37  section 2-208 of this article and no proceeding having  been  instituted
    38  to review same, or
    39    b. The filing of a final order [sustaining the petition] affirming the
    40  decision  of  the  commission  to  proceed  to  a  village incorporation
    41  election pursuant to section 2-208 of  this  article  or  reversing  the
    42  decision  of  the  commission  not to proceed to a village incorporation
    43  election pursuant to section 2-208 of this article after such a proceed-
    44  ing to review.
    45    [c.] 2. The procedure for conducting said election shall  be  pursuant
    46  to the election law.
    47    §  9.  Section  2-214  of the village law, as amended by section 26 of
    48  part X of chapter 62 of the laws of 2003, is amended to read as follows:
    49    § 2-214 Notice of election. [Within ten days after  the  right  to  an
    50  election  is  complete]  No  later than three days after the right to an
    51  election is complete, the commission shall direct the town clerk of each
    52  town in which any portion of such territory is located [shall  cause  to
    53  be  posted]  to  post  in  [five] six public places in that part of such
    54  territory located in such town and also to be published at  least  twice
    55  in the newspaper or newspapers designated pursuant to subdivision eleven
    56  of  section  sixty-four of the town law, a joint notice by the clerks of

        A. 8573                             7

     1  all such towns that at a convenient place in such territory, between the
     2  hours of twelve o'clock noon and nine o'clock in the evening  and  on  a
     3  day not less than twenty nor more than thirty days after the date of the
     4  posting  and  first publication, which date and place shall be specified
     5  therein, an election will be held  to  determine  whether  the  proposed
     6  village  of  (naming  it) shall be incorporated. No later than five days
     7  after receiving direction from the commission, the town clerk or  clerks
     8  shall  provide  to the commission a list of the six locations where such
     9  notices are to be posted. Should  the  commission  object  to  any  such
    10  locations  submitted  by the town clerk or clerks, the commission shall,
    11  no later than  seven  business  days  after  receipt  of  such  list  of
    12  locations,  direct  the  town  clerk  or  clerks to post such notices in
    13  alternative locations designated by the commission.  In  such  instance,
    14  the  postings  of such notices shall be made by the town clerk or clerks
    15  no later than twenty days after the right to an  election  is  complete.
    16  Such  election  shall  not  be  held on a day of a town election or of a
    17  general election in a town in  which  any  part  of  such  territory  is
    18  located.  For  the  purposes of this section, in the event that the town
    19  maintains a website, one of the posting requirements  required  by  this
    20  section  may  be  fulfilled  by  posting  such information on the town's
    21  website. Such posting shall also be made on  the  secretary  of  state's
    22  website.
    23    § 10. Subdivisions 1 and 3 of section 2-218 of the village law, subdi-
    24  vision 3 as amended by section 27 of part X of chapter 62 of the laws of
    25  2003, are amended to read as follows:
    26    1.  Preparation.  It  shall  be  the duty of the clerk of each town in
    27  which a portion of such territory is located to make and file  in  [his]
    28  their  office,  at least [ten] twenty days before such election an accu-
    29  rate list of voters, alphabetically arranged, who are qualified to  vote
    30  at  such  election. Such list shall be copied from the registration poll
    31  records for the last preceding general election, and shall  be  modified
    32  in  accordance  with  whatever  information  the  town clerk may have or
    33  receive from the board of elections.
    34    3. Notice of availability of list for inspection and additions. Within
    35  ten days after the right to an election is complete the  town  clerk  of
    36  each  town in which any portion of such territory is located shall cause
    37  to be posted in [five] six public places in that part of such  territory
    38  located  in  such  town  and  also to be published at least twice in the
    39  newspaper or newspapers designated pursuant  to  subdivision  eleven  of
    40  section  sixty-four  of the town law, a notice: that a registration list
    41  of voters qualified to vote at  such  election  will  be  available  for
    42  inspection  in  [his]  their  office between the hours of twelve o'clock
    43  noon and nine o'clock in the evening on a day  specified  therein  which
    44  day  shall  not be on a Sunday and shall be at least three days prior to
    45  such election; that at said time and place said list will  be  available
    46  for  inspection  by  the  public;  and  also that at said time and place
    47  persons claiming to be qualified to vote at such  election  whose  names
    48  are not on such list may, upon presentation of proper proofs, have their
    49  names  added  thereto.  Prior to posting, the town clerk or clerks shall
    50  provide to the commission a list of the six locations where such notices
    51  are to be posted. Should the commission object  to  any  such  locations
    52  submitted  by  the  town clerk or clerks, the commission shall, no later
    53  than seven days after receipt of such list of locations, direct the town
    54  clerk or clerks to post such notices in alternative locations designated
    55  by the commission. The postings of such notices shall  be  made  by  the
    56  town  clerk  or  clerks  no later than twenty days after the right to an

        A. 8573                             8

     1  election is complete. For the purposes of this  section,  in  the  event
     2  that  the  town  maintains  a  website,  one of the posting requirements
     3  required by this subdivision may be fulfilled by posting  such  informa-
     4  tion on the town's website.
     5    §  11. Subdivision 4 of section 2-220 of the village law is amended to
     6  read as follows:
     7    4. Powers and duties of inspectors. The inspectors shall  execute  the
     8  constitutional  oath  of  office and file same in the office of the town
     9  clerk wherein was filed [the original] a copy of  the  petition.    They
    10  shall  supervise  and  conduct such election and in connection therewith
    11  shall possess all the powers conferred by law upon a board of inspectors
    12  of election at a town election, so far as the same are applicable.
    13    § 12. Section 2-236 of the village law, as amended by a chapter of the
    14  laws of 2023 amending the  village  law  relating  to  establishing  the
    15  village  incorporation  commission  as  proposed  in  legislative  bills
    16  numbers S. 7537 and A. 7761, is amended to read as follows:
    17    § 2-236 Payment of expenses incurred in proceedings for  incorporation
    18  if  village  not  incorporated.  If  the  incorporation  of the proposed
    19  village be not effected by the proceedings authorized in  this  article,
    20  the  expenses  incurred by the towns in which any part of such territory
    21  is located for payment  of  cost  of  posting,  publishing  and  serving
    22  required  notices,  stenographic  services and services of inspectors of
    23  election shall be paid from the fund deposited with the [village  incor-
    24  poration  commission established pursuant to section 2-259 of this arti-
    25  cle] department of state, on behalf of the commission.  If such fund  so
    26  deposited  is  not  sufficient to pay all of such expenses, the costs in
    27  excess of such fund shall be  a  general  town  charge.  Any  unexpended
    28  balance  of  such  fund  shall  become a part of the general fund of the
    29  town.
    30    § 13. The first paragraph d of subdivision 5 of section 2-254  of  the
    31  village law is relettered paragraph b.
    32    §  14.  Section 2-259 of the village law, as added by a chapter of the
    33  laws of 2023 amending the  village  law  relating  to  establishing  the
    34  village  incorporation  commission  as  proposed  in  legislative  bills
    35  numbers S. 7537 and A. 7761, is renumbered 2-260 and amended to read  as
    36  follows:
    37    §  2-260  Village incorporation commission and general administration.
    38  1.  a. There is hereby established within  the  department  of  state  a
    39  village  incorporation commission. The commission shall consist of three
    40  members appointed as follows:
    41    (1) one member appointed by the secretary of state;
    42    (2) one member appointed by the comptroller; and
    43    (3) one member appointed by the attorney general.
    44    b. Each member of the commission shall serve a  term  of  four  years.
    45  The  members  shall  be eligible for reappointment and shall serve until
    46  their successors are appointed  and  qualified,  and  the  term  of  the
    47  successor  of  any  incumbent shall be calculated from the expiration of
    48  the term of that incumbent. A vacancy occurring other than by expiration
    49  of term shall be filled in the same manner as the original  appointment,
    50  but for the unexpired term only.
    51    c.  A  majority  of  the  members of the commission shall constitute a
    52  quorum for the purpose of conducting the business thereof and a majority
    53  vote of all the members in office shall be necessary for action.
    54    d. The member appointed by the secretary of state shall be chairperson
    55  of the commission, provided that in the  absence  of  the  secretary  of
    56  state's  appointee  at  any  meeting  of  the board the appointee of the

        A. 8573                             9

     1  attorney general or the comptroller, in such order, if either or both be
     2  present, shall act as chairperson.
     3    e.  No member of the commission shall be disqualified from holding any
     4  other public office, nor shall employment be forfeited by reason of  the
     5  member's  appointment  hereunder,  notwithstanding the provisions of any
     6  general, special or local law, ordinance, county or city charter.
     7    2. The commission shall have powers and duties  as  provided  in  this
     8  subdivision.  A  petitioner  may  seek  relief from the commission under
     9  paragraph f of this subdivision in the  event  that  the  petitioner  or
    10  petitioners and town or towns are unable to jointly select a third-party
    11  to  prepare  the  study required by section 2-202 of this article within
    12  thirty-days of the filing of such a request with the town clerk:
    13    a. To accept petitions filed pursuant to this article;
    14    b. To hold hearings as required by this article;
    15    c. To accept and deposit with the state comptroller  all  such  monies
    16  required  to  be paid by those seeking to incorporate a village pursuant
    17  to this article; [and]
    18    d. To evaluate petitions filed  pursuant  to  this  article  [and]  to
    19  ensure  all  components  required  by section 2-202 of this article have
    20  been included;
    21    e. To make decisions with regard to whether  a  village  incorporation
    22  election  shall  proceed  based  upon  the  commission's judgment of the
    23  criteria established in sections 2-200 and 2-206 of this article and any
    24  other requirements established in this article.
    25    f. To select a third-party designee from a list submitted by the peti-
    26  tioner or petitioners and town or towns to prepare the study required to
    27  be attached to the petition pursuant to section 2-202 of this article;
    28    g. To direct the town clerk or clerks to post notices  of  hearing  in
    29  alternative locations pursuant to section 2-204 of this article;
    30    h.  To  direct the town clerk or clerks to post notices of election in
    31  alternative locations pursuant to section 2-214 of this article; and
    32    i. To direct the town clerk or clerks to post notices of  availability
    33  of  list  for inspection and additions pursuant to section 2-218 of this
    34  article.
    35    3. Prior to issuing its decision with  regard  to  whether  a  village
    36  incorporation  election  shall  proceed,  and  upon receiving a complete
    37  petition seeking village incorporation, the commission  shall  [complete
    38  two  studies after receiving a petition for village incorporation, which
    39  shall take the following form:
    40    a. The first study shall consist of a  feasibility  assessment,  which
    41  shall  examine the proposed village's ability to provide services to its
    42  population in an efficient manner.  The  feasibility  study  shall  also
    43  evaluate  the  proposed  village's  fiscal  capacity  to  provide  these
    44  services; and
    45    b. The second study shall consist of an impact assessment  that  shall
    46  evaluate  the  fiscal  and  operational  effects of incorporation on the
    47  surrounding town and the rest of the local  area.  These  impacts  shall
    48  include fiscal, service, political, environmental, and land use impacts.
    49    c.  In  addition to the studies required pursuant to each petition for
    50  village incorporation, the village incorporation commission  shall  also
    51  produce  a  report  on  its  recommendations  with regard to the village
    52  incorporation process  pursuant  to  this  article.  Such  report  shall
    53  provide the commission's analysis and recommendations on the following:
    54    (i) The number of petitions required for a village incorporation peti-
    55  tion;
    56    (ii) The population required to incorporate a village;

        A. 8573                            10

     1    (iii) Whether the signatures of the residents of such territory quali-
     2  fied  to  vote for town officers in the unincorporated part of such town
     3  that is not part of such territory where such village would be  incorpo-
     4  rated  nor  part  of  another  village  should  be  required in order to
     5  commence  a  proceeding  for  the  incorporation  of such territory as a
     6  village;
     7    (iv) Whether the residents of such territory  qualified  to  vote  for
     8  town  officers  in the unincorporated part of such town that is not part
     9  of such territory where such village would be incorporated nor  part  of
    10  another  village  would  be  entitled  to  vote in village incorporation
    11  elections;
    12    (v) Whether population density should be  considered  in  the  village
    13  incorporation process;
    14    (vi)  Whether the requirements of this article are adequate to protect
    15  the fiscal, service, and taxation interests  of  the  residents  of  the
    16  proposed village and those residents of the surrounding areas; and
    17    (vii)  Any  other information and recommendations the village incorpo-
    18  ration commission deems relevant.
    19    d. The report required pursuant to paragraph  c  of  this  subdivision
    20  shall  be  published  on  the public facing portion of the department of
    21  state's website, and the secretary of state or his or her designee shall
    22  transmit the commission's findings and recommendations to the speaker of
    23  the assembly, the temporary president of the senate, and the governor on
    24  or before two years from the effective date of this section.
    25    4. The studies required pursuant to this  section  shall  be  paid  by
    26  funds appropriated pursuant to section two hundred thirty-nine-bb of the
    27  general municipal law.
    28    5.  The  commission's]  review the study attached to such petition, as
    29  required by section 2-202 of this article,  to  determine  whether  such
    30  study conforms to the requirements of section 2-202 of this article.
    31    4. Commission review. The commission shall determine whether:
    32    a.  the  petitioner has submitted a study pursuant to section 2-202 of
    33  this article having all the elements required by this article  and  that
    34  such  study  was provided for public review on the department of state's
    35  website for at least ninety days before any public hearing on the  peti-
    36  tion;
    37    b.  the  proposed village is capable of providing services to the area
    38  proposed to be incorporated;
    39    c. the tax revenue collected by such  proposed  village  would  suffi-
    40  ciently  defray  the  cost  of municipal services at a property tax rate
    41  that favorably compares to the property tax rate of the town  or  towns;
    42  and
    43    d. the incorporation would increase tax burdens on those located with-
    44  in  the town or towns within which such proposed village would be estab-
    45  lished.
    46    5. A village incorporation election shall not proceed if  the  commis-
    47  sion determines based on the evidentiary record that the petition or the
    48  study  or  other  exhibits  or certifications with the petition does not
    49  meet the requirements of this article or that the proposed village would
    50  not satisfy the criteria of paragraph b, c, or d of subdivision four  of
    51  this section.
    52    6.  A  notice  of  the  commission's decision with regard to whether a
    53  village incorporation shall proceed to election  shall  be  by  majority
    54  vote,  and  the  [commission] department of state shall post a notice of
    55  [its] the commission's decision on  the  public-facing  portion  of  the
    56  department  of  state's website. No village incorporation election shall

        A. 8573                            11

     1  proceed in the event the commission rules  adversely  to  such  incorpo-
     2  ration, except pursuant to the provisions of section 2-210 of this arti-
     3  cle.
     4    [6.  No  village  incorporation  election  shall proceed until January
     5  first, two thousand twenty-four.]
     6    § 15. Section 96 of the executive law  is  amended  by  adding  a  new
     7  subdivision 17 to read as follows:
     8    17.  For  receipt  of  a  village  incorporation  petition pursuant to
     9  section 2-202 of the village law, two hundred fifty dollars.
    10    § 16. Subdivisions 1 and 2 of section 2-200 of the village law, subdi-
    11  vision 1 as amended by a chapter  of  the  laws  of  2023  amending  the
    12  village  law  relating to establishing the village incorporation commis-
    13  sion as proposed in legislative bills numbers S. 7537 and  A.  7761  and
    14  subdivision 2 as amended by chapter 932 of the laws of 1974, are amended
    15  to read as follows:
    16    1.  A territory containing a population of at least [two] one thousand
    17  five hundred persons who are regular inhabitants thereof, as hereinafter
    18  defined, may be incorporated as a village under  this  chapter  provided
    19  such  territory does not include a part of a city or village and further
    20  provided the limits of such territory:
    21    a. do not contain more than five square miles; or
    22    b. are coterminous with the entire boundaries of a school, fire,  fire
    23  protection, fire alarm, town special or town improvement district; or
    24    c.  are  coterminous  with  parts  of  the boundaries of more than one
    25  school, fire, fire protection, fire alarm, town special or town improve-
    26  ment district, all of which are wholly contained within such limits  and
    27  within one town; or
    28    d. are coterminous with the entire boundaries of a town.
    29    2.  [The words "regular] Definitions. a. "Regular inhabitants" as used
    30  herein and for the purpose of this article  shall  include  all  persons
    31  residing  in  the  territory  proposed  to  be  incorporated except such
    32  persons who themselves, or who are persons under  the  age  of  eighteen
    33  years  residing  with  persons  who,  maintain  a residence outside such
    34  territory which is used as their address for purposes of voting.
    35    b. "Commission" as used herein and for the purposes  of  this  article
    36  shall  mean  the  village  incorporation  commission,  as established by
    37  section 2-260 of this article.
    38    c. "Secretary" as used herein and for the  purposes  of  this  article
    39  shall mean the secretary of state.
    40    § 17. Section 10 of a chapter of the laws of 2023 amending the village
    41  law  relating  to  establishing  the village incorporation commission as
    42  proposed in legislative bills numbers S. 7537 and A. 7761, is amended to
    43  read as follows:
    44    § 10. This act shall take effect on January 1, 2024; provided  [howev-
    45  er,  that section three-a of this act  shall take effect immediately and
    46  shall expire and be deemed repealed on the same date  and  in  the  same
    47  manner  as section three of this act takes effect; and provided further,
    48  that for village incorporation petitions that have collected  signatures
    49  prior  to the effective date of this act, nothing in this act shall deem
    50  such  petition  signatures  invalid;  and  provided  further,  that  the
    51  provisions of this act shall apply to all existing village incorporation
    52  petitions  that  have  collected  signatures  prior  to January 1, 2024,
    53  except as hereinafter provided; and provided further, that  for  village
    54  incorporation  petitions that have collected signatures prior to January
    55  1, 2024, the commission review process established pursuant  to  section
    56  2-259  of  the village law, as added by section seven of this act, shall

        A. 8573                            12

     1  not apply, and such village incorporation petitions shall continue to be
     2  subject to the supervisor approval process; and provided  further,  that
     3  for village incorporation petitions that have collected signatures prior
     4  to January 1, 2024, paragraph h of subdivision 1 of section 2-206 of the
     5  village  law as added by section three of this act shall not apply] that
     6  any village incorporation petitions associated by having  at  least  one
     7  common  petition  signature  witness on either of the two petitions that
     8  were initially filed on a date in February 2017 and May 2019 respective-
     9  ly in a town with a population of more than ninety thousand  as  of  the
    10  latest federal decennial census located in a county with a population of
    11  more  than  nine  hundred  thousand  as  of the latest federal decennial
    12  census: (a) shall not be subject to this act and shall  continue  to  be
    13  subject  to  the provisions of article 2 of the village law in effect as
    14  of June 1, 2023, so long as such  village  incorporation  processes  are
    15  concluded  prior  to  January  1,  2040;  and  (b) if such petitions are
    16  denied, any subsequent village incorporation petitions  associated  with
    17  such  petitions  shall  also continue to be subject to the provisions of
    18  article 2 of the village law in effect as of June 1, 2023,  so  long  as
    19  such incorporation processes associated with such petitions are complete
    20  prior to January 1, 2040.  Provided further, that for any village incor-
    21  poration  petitions that were initially filed on a date in February 2017
    22  and May 2019 respectively in a town with a population of more than nine-
    23  ty thousand as of the latest federal decennial census located in a coun-
    24  ty with a population of more than nine hundred thousand as of the latest
    25  federal decennial census, a study on the fiscal, service,  and  taxation
    26  interests of the population which would constitute the residents of such
    27  village  and the population which constitutes the residents of such town
    28  in which such village would be established shall be  prepared  for  such
    29  proposed  village  incorporation, conducted by the Center for Government
    30  Research or other qualified institution and such study shall  be  posted
    31  on  the  public-facing  portion  of  the department of state website for
    32  ninety days prior to the commencement of any referendum for the approval
    33  of such a village pursuant to article 2 of the village law, and provided
    34  that where any subsequent  village  incorporation  petitions  associated
    35  with  such  petitions  shall  be  filed,  then  the requirements of this
    36  section shall be deemed satisfied by the re-publication of  such  study,
    37  and further provided, however, that (i) such state-funded study shall be
    38  submitted  for posting on the public-facing portion of the department of
    39  state website by no later than April 1, 2024; (ii) such study  shall  be
    40  posted  on  the  department  of  state website no later than thirty days
    41  after it is submitted for posting; and (iii) the adequacy  of  any  such
    42  state-funded Center for Government Research, or other qualified institu-
    43  tion  conducted  study shall not be a basis for objecting to the village
    44  incorporation petition or the scheduling  of  any  such  referendum  for
    45  approval  of  such village; provided further, the provisions of this act
    46  shall not apply to petitions where there is a joint notice  of  election
    47  specifying a date and time of the election and signed by the town clerks
    48  of  each  affected  town  pursuant  to section 2-214 of the village law,
    49  dated December 22, 2023 or earlier.
    50    § 18. Severability. If any clause,  sentence,  paragraph,  section  or
    51  part  of  this act or application thereof to any municipality, person or
    52  circumstances shall be adjudged by any court of  competent  jurisdiction
    53  to  be  invalid  or  unconstitutional,  such  judgment shall not affect,
    54  impair or invalidate the application of the  remainder  thereof  to  any
    55  municipalities,  persons and circumstances, but shall be confined in its
    56  operation to the clause, sentence, paragraph, section  or  part  thereof

        A. 8573                            13

     1  directly  involved  in the controversy in which such judgment shall have
     2  been rendered, and the legislature hereby declares that  it  would  have
     3  enacted  this  article  without the invalid provision or application, as
     4  the case may be, had such invalidity been apparent.
     5    §  19.  This  act  shall  take  effect  immediately; provided, however
     6  sections one through sixteen of this act shall take effect on  the  same
     7  date  and  in  the same manner as a chapter of the laws of 2023 amending
     8  the village law  relating  to  establishing  the  village  incorporation
     9  commission as proposed in legislative bills numbers S. 7537 and A. 7761,
    10  takes effect.