STATE OF NEW YORK ________________________________________________________________________ 2323 2017-2018 Regular Sessions IN SENATE January 13, 2017 ___________ Introduced by Sens. GRIFFO, AKSHAR, CROCI, DeFRANCISCO, FUNKE, GALLIVAN, HANNON, LATIMER, MARCHIONE, MURPHY, O'MARA, ORTT, RANZENHOFER, RITCHIE, ROBACH, SERINO, SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to amend the general municipal law and the education law, in relation to prohibiting the establishment of certain programs mandated for municipal corporations and school districts unless such programs are fully funded by the state The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The general municipal law is amended by adding a new 2 section 25 to read as follows: 3 § 25. Funding of mandates. 1. Definitions. As used in this section, 4 the following terms shall have the following meanings unless the context 5 shall otherwise require: 6 (a) "Mandate" means: 7 (i) any state law, rule or regulation which establishes a new program 8 or requires a higher level of service for an existing program which a 9 municipal corporation is required to provide; or 10 (ii) any provision of general law which grants a new property tax 11 exemption or abatement or increases an existing property tax exemption 12 or abatement which a municipal corporation is required to provide. 13 (b) "Unfunded mandate" shall mean: 14 (i) any state law, rule or regulation which establishes a new program 15 or requires a higher level of service for an existing program which a 16 municipal corporation is required to provide, and which results in a net 17 additional cost to such municipal corporation; 18 (ii) any alteration in funding provided to a municipal corporation for 19 the purpose of defraying the costs of a program which it is required to 20 provide, thereby resulting in a net additional cost to such municipal 21 corporation; or EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD01969-01-7S. 2323 2 1 (iii) any provision of general law which grants a new property tax 2 exemption or abatement or increases an existing property tax exemption 3 or abatement which any municipal corporation is required to provide, 4 thereby resulting in a net additional cost to such municipal corpo- 5 ration. 6 (c) "Net additional cost" means the increased cost or costs incurred 7 or anticipated to be incurred within a one year period by a municipal 8 corporation in performing or administering a mandate after subtracting 9 therefrom any revenues received or receivable by such municipal corpo- 10 ration on account of the mandated program or service, including but not 11 limited to: 12 (i) fees charged to the recipients of the mandated program or service; 13 (ii) state or federal aid paid specifically or categorically in 14 connection with the program or service; and 15 (iii) an offsetting savings resulting from the diminution or elimi- 16 nation of any other program or service directly attributable to the 17 performance or administration of the mandated program. 18 2. Funding of municipal corporation mandates. Notwithstanding any 19 other provision of law to the contrary, no unfunded mandate shall be 20 enacted which creates an increased annual net additional cost to any 21 municipal corporation. Each mandate which imposes a net additional cost 22 upon a municipal corporation shall provide for compensation or funding 23 by the state of the full amount of the net additional cost thereof. In 24 the event such compensation or funding is not provided, the mandate 25 shall be void. 26 3. Exemptions to the funding of municipal corporation mandates 27 requirement. (a) The state shall not be required to fund any mandate if: 28 (i) The mandate is required by a court order or judgment; 29 (ii) The mandate is provided at the option of the local government 30 under a law, regulation, rule or order that is permissive rather than 31 mandatory; 32 (iii) The mandate results from the enactment of legislation requested 33 by the municipal corporation in a home rule message requesting authority 34 to implement the program or service specified in the statute, and the 35 statute imposes costs only upon that municipal corporation which 36 requests the authority to implement the program or service; 37 (iv) The mandate is required by, or arises from, an executive order of 38 the governor exercising his or her emergency powers; or 39 (v) The mandate is required by statute or executive order that imple- 40 ments a federal law or regulation and results from costs mandated by the 41 federal government to be borne at the local level, unless the statute or 42 executive order results in costs which exceed the costs mandated by the 43 federal government. 44 (b) Every statute, rule or regulation establishing a mandate shall 45 provide that the effective date of any such mandate imposed on municipal 46 corporations shall be consistent with the needs of the state and munici- 47 pal corporations to plan implementation thereof and be consistent with 48 the availability of required funds. 49 § 2. The education law is amended by adding a new section 1527-a to 50 read as follows: 51 § 1527-a. Funding of mandates imposed on school districts. 1. Defi- 52 nitions. As used in this section, the following terms shall have the 53 following meanings unless the context shall otherwise require: 54 (a) "Mandate" means:S. 2323 3 1 (i) any state law, rule or regulation which establishes a new program 2 or requires a higher level of service for an existing program which a 3 school district is required to provide; or 4 (ii) any provision of general law which grants a new property tax 5 exemption or abatement or increases an existing property tax exemption 6 or abatement which a school district is required to provide. 7 (b) "Unfunded mandate" shall mean: 8 (i) any state law, rule or regulation which establishes a new program 9 or requires a higher level of service for an existing program which a 10 school district is required to provide and which results in a net addi- 11 tional cost to such school district; 12 (ii) any alteration in funding provided to a school district for the 13 purpose of defraying the costs of a program which it is required to 14 provide, thereby resulting in a net additional cost to such school 15 district; or 16 (iii) any provision of general law which grants a new property tax 17 exemption or abatement or increases an existing property tax exemption 18 or abatement which a school district is required to provide, thereby 19 resulting in a net additional cost to such school district. 20 (c) "Net additional cost" means the increased cost or costs incurred 21 or anticipated to be incurred within a one year period by a school 22 district in performing or administering a mandate after subtracting 23 therefrom any revenues received or receivable by such school district on 24 account of the mandated program or service, including but not limited 25 to: 26 (i) fees charged to the recipients of the mandated program or service; 27 (ii) state or federal aid paid specifically or categorically in 28 connection with the program or service; and 29 (iii) an offsetting savings resulting from the diminution or elimi- 30 nation of any other program or service directly attributable to the 31 performance or administration of the mandated program. 32 2. Funding of school district mandates. Notwithstanding any other 33 provision of law to the contrary, no unfunded mandate shall be enacted 34 which creates a net additional cost to any school district. Each 35 mandate which imposes a net additional cost upon a school district shall 36 provide for compensation or funding by the state of the full amount of 37 the net additional costs thereof. In the event such compensation or 38 funding is not provided, the mandate shall be void. 39 3. Exemptions to the funding of school district mandates requirement. 40 (a) The state shall not be required to fund any mandate for school 41 districts if: 42 (i) The mandate is required by a court order or judgment; 43 (ii) The mandate is provided at the option of the school district 44 under a law, regulation, rule or order that is permissive rather than 45 mandatory; 46 (iii) The mandate results from the enactment of legislation requested 47 by the school district in a home rule message requesting authority to 48 implement the program or service specified in the statute, and the stat- 49 ute imposes costs only upon that school district which requests the 50 authority to implement the program or service; 51 (iv) The mandate is required by, or arises from, an executive order of 52 the governor exercising his or her emergency powers; or 53 (v) The mandate is required by statute or executive order that imple- 54 ments a federal law or regulation and results from costs mandated by the 55 federal government to be borne at the local level, unless the statute orS. 2323 4 1 executive order results in costs which exceed the costs mandated by the 2 federal government. 3 (b) Every statute, rule or regulation establishing a mandate shall 4 provide that the effective date of any such mandate imposed on school 5 districts shall be consistent with the needs of the state and school 6 districts to plan implementation thereof, and be consistent with the 7 availability of required funds. 8 § 3. This act shall take effect immediately and sections one and two 9 of this act shall apply to mandates enacted on or after such effective 10 date.