STATE OF NEW YORK ________________________________________________________________________ 8578 2025-2026 Regular Sessions IN SENATE November 14, 2025 ___________ Introduced by Sen. LANZA -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to incorporate the city of Staten Island; to enact a charter for the city of Staten Island; to provide a period of transition prior to the establishment of the city of Staten Island; to amend the education law, in relation to the establishment of the city school district of the city of Staten Island; to amend the education law, in relation to the transfer of the college of Staten Island of the city university of New York to the state university of New York; to amend the judiciary law, in relation to providing for the judiciary within the city of Staten Island; to amend the public housing law, the education law, the public authorities law and the private housing finance law, in relation to providing membership on certain authorities for the city of Staten Island; to amend the executive law, the elder law and the social services law, in relation to probation and social services within the city of Staten Island; to amend the county law, in relation to the treatment of the county of Richmond in similar fashion to coun- ties within a city having a population of one million or more; to amend the election law, the state finance law and the surrogate's court procedure act, in relation to making conforming changes relating to the establishment of the city of Staten Island; to amend the gener- al municipal law, in relation to the city of Staten Island industrial development agency; to amend the local emergency housing rent control act, the emergency tenant protection act of nineteen seventy-four, the general business law and the real property tax law, in relation to the continuation of existing housing regulations for the city of Staten Island; to amend the tax law, the state finance law, the public authorities law and the New York state financial emergency act for the city of New York, in relation to applicability of the authority of the financial control board; to amend the general city law, chapter 772 of the laws of 1966 relating to imposition of a city business tax and the tax law, in relation to providing authority for the city of Staten Island to continue presently applicable taxes within such city; to enact the administrative code of the city of Staten Island, in EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14063-03-5

S. 8578 2 relation to procedures and administration of essential city services and the authority of such city to impose taxes; and making appropri- ations to advance moneys for the establishment of the city of Staten Island and the city school district of the city of Staten Island The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 THE CITY OF STATEN ISLAND ACT 2 CONTENTS 3 SECTION(S) SUBJECT 4 1-001 Short title. 5 1-002 Legislative history, findings and intent and statement of 6 purposes. 7 1-003 Definitions. 8 1-004 Incorporation. 9 2-001 Charter of the city of Staten Island. 10 3-001 Legislative findings and declaration of purposes. 11 3-002 Elections. 12 3-003 Staten Island city government-transition. 13 3-004 Employees of the city of Staten Island. 14 3-005 Assistance to the city of Staten Island. 15 3-006 Provision of municipal services on the city of Staten 16 Island. 17 3-007 Debt, property, obligations and other allocations. 18 3-008 Continuance of municipal services. 19 3-009 Powers of the city of Staten Island to adopt and amend 20 local laws. 21 3-010 Powers of the city of Staten Island relating to home 22 rule powers. 23 4-001-4-020 City school district of the city of Staten Island. 24 5-001-5-003 Transfer of The College of Staten Island. 25 6-001 Interim court structure for the city of Staten Island. 26 7-001-7-002 New York city housing authority. 27 7-003-7-005 New York city construction fund. 28 7-006-7-008 New York city municipal water finance authority. 29 7-009 New York city housing development corporation. 30 7-010 Dormitory authority act; court facilities and combined 31 occupancy structures. 32 7-011 New York city school construction authority. 33 8-001-8-023 Municipal powers; authority of the county of Richmond 34 and the city of Staten Island. 35 9-001-9-017 Municipal services; city of Staten Island. 36 10-001-10-008 Landlord-tenant relationships. 37 11-001 Constitutional real property tax limitations; city of 38 Staten Island. 39 12-001-12-020 Municipal assistance corporation for the city of New York; 40 revenues. 41 13-001 Taxes; tax collection authority. 42 14-001 Administrative code of the city of Staten Island. 43 15-001 Appropriations; transition government and establishment of

S. 8578 3 1 the city of Staten Island. 2 15-002 Appropriation; city school district of the city of Staten 3 Island. 4 16-001 Severability. 5 17-001 Effective date. 6 Section 1-001. Short title. This act shall be known and may be cited 7 as "The City of Staten Island Act". 8 § 1-002. Legislative history, findings and intent and statement of 9 purposes. 1. The legislature hereby finds, determines and declares: 10 (a) that Article IX, section 1 of the New York State Constitution 11 states that "effective local self-government and intergovernmental coop- 12 eration are purposes of the people of the state" and subdivision (a) of 13 section 2 of Article IX, further declares that "the legislature shall 14 provide for the creation and organization of local government;" 15 (b) that consistent with these constitutional provisions and in order 16 to provide for an effective republican form of government in accordance 17 with the constitution of the United States of America, the people of the 18 state of New York, represented in the senate and assembly, did enact 19 chapter 773 of the laws of 1989, as amended by chapter 17 of the laws of 20 1990, which authorized the borough of Staten Island, upon approval by 21 referendum to consider formally separating from its existing municipal 22 government, authorized the creation of a charter commission for the city 23 of Staten Island, authorized, upon approval of a subsequent referendum, 24 the adoption of a charter, and most importantly, required that within 25 three months of adoption of the charter by the voters of Staten Island, 26 the charter commission submit to the governor and the legislature, 27 proposed legislation enabling the borough of Staten Island to disengage 28 and separate from its existing municipal government, and that only upon 29 enactment of such enabling legislation, could the charter for the city 30 of Staten Island take effect; 31 (c) that the legislature, in requiring the subsequent enactment of 32 enabling legislation before a charter for the city of Staten Island 33 could take effect, reaffirmed its paramount constitutional authority to 34 distribute the powers of local government, as between city and county 35 governments, as it deems best; 36 (d) that preserving historical and natural boundaries, as well as the 37 integrity of political subdivisions of the state, and providing meaning- 38 ful representation of the smaller boroughs in the city of New York 39 affairs, are among those legitimate state interests and policies which 40 have been validated by the federal courts; 41 (e) that the people of the state of New York enacted chapter 773 of 42 the laws of 1989, as subsequently amended, to provide a process by which 43 the people of Staten Island could carefully study and consider the legal 44 disengagement and separation of the borough of Staten Island from the 45 city of New York as an acceptable means of implementing the substantial 46 state interest in providing effective local self-government for the 47 citizens of Staten Island; and 48 (f) that the issues of legal disengagement and separation of the 49 borough of Staten Island from the city of New York raise concerns of 50 statewide importance, not limited to Staten Island residents or New York 51 city residents. 52 2. The legislature further finds, determines and declares: 53 (a) that the New York State Constitution entitles the people of Staten 54 Island to "effective local self-government;"

S. 8578 4 1 (b) that the existing charter of the city of New York does not provide 2 meaningful representation to the borough of Staten Island, therefore 3 precluding "effective local self-government;" 4 (c) that given the constraints of the United States Supreme Court 5 articulated in Board of Estimate of the City of New York v. Beverly 6 Morris, 489 US 103 (1989), the only viable alternative to providing 7 "effective local self-government" is legal disengagement and separation 8 from the city of New York and the creation of the new city of Staten 9 Island; 10 (d) that such legal separation of Staten Island from the city of New 11 York is economically feasible, with minimal fiscal impact on the state 12 of New York; 13 (e) that the city of New York should have a meaningful role and the 14 opportunity to provide significant input in the process by which Staten 15 Island legally disengages and separates from the city of New York, 16 including participation in a transition period, but the city of New York 17 should not in the exercise of the aforesaid role, be permitted to unila- 18 terally prevent the legal disengagement and separation of Staten Island; 19 and 20 (f) that in connection with the process of legal disengagement and 21 separation, there is hereby specifically delegated to a group of repre- 22 sentatives from both the city of New York and the proposed city of 23 Staten Island the task of evaluating and accounting for the allocation 24 of all assets and liabilities, as well as the provision of municipal 25 services during the transition period, all of which shall be determined 26 in the context of the overall best interest of the state of New York. 27 3. The legislature further finds, determines and declares: 28 (a) that by virtue of the authority vested in the legislature by the 29 New York State Constitution to provide for the "creation and organiza- 30 tion of local governments" as well as for "effective local self-govern- 31 ment" and "intergovernmental cooperation," the interests of the people 32 of the state would be served and promoted by the separation and creation 33 of a new municipality to be called the city of Staten Island; and 34 (b) that in furtherance of such purposes, the recommendations of the 35 charter commission shall be implemented in connection with the creation 36 of the city of Staten Island. 37 4. The legislature further finds, determines and declares that the 38 establishment of the city of Staten Island is authorized by the New York 39 State Constitution, constitutes a state purpose for the benefit of the 40 people of the state of New York and therefore the city of Staten Island 41 Act is hereby enacted. 42 § 1-003. Definitions. As used in this act, the following terms shall 43 have the following meanings: 44 1. "Effective date of this charter" shall mean the first of November 45 next succeeding the date on which this act shall have become a law. 46 2. "Date of incorporation of the city of Staten Island" or "date of 47 incorporation" shall mean the date on which the city of Staten Island is 48 incorporated, the first of January next succeeding the date on which 49 this act shall have become a law. 50 3. "Date of establishment of the city of Staten Island" or "date of 51 establishment" shall mean the date on which the city of Staten Island is 52 first authorized to exercise full municipal authority, except for judi- 53 cial authority, over the citizens and territory of the city of Staten 54 Island, the first of July in the second year next succeeding the year in 55 which this act shall have become a law.

S. 8578 5 1 4. "Transition period" shall mean the period of time between the date 2 of incorporation and the first of July in the second year next succeed- 3 ing the year in which this act shall have become a law from and includ- 4 ing the date of incorporation until the date of establishment. 5 5. "Preceding municipality" shall mean the city government for the 6 geographical area of the city of Staten Island existing immediately 7 prior to the incorporation of the city of Staten Island and which shall 8 exercise full municipal powers and duties for such area during the tran- 9 sition period. 10 6. "Judiciary transition period" shall mean the period of time between 11 the date of incorporation of the city of Staten Island and December 12 thirty-first in the fifth year following such incorporation or until the 13 provisions of article 5-C of the judiciary law are specifically super- 14 seded by state law. At the conclusion of the judiciary transition peri- 15 od, the city of Staten Island shall be authorized to exercise full judi- 16 cial authority over the citizens and territory of the city of Staten 17 Island. 18 § 1-004. Incorporation. The city of Staten Island is hereby incorpo- 19 rated on the first of January next succeeding the date on which this act 20 shall have become a law. The boundaries of such city shall be as 21 described in section 1-02 of the charter of the city of Staten Island as 22 set forth in section 2-001 of this act. During the transition period 23 such city shall not have the powers or duties of a municipality except 24 those which are provided for pursuant to this act to provide for the 25 transition of government and the establishment of such city. During the 26 transition period, the preceding municipality shall possess and exercise 27 full municipal powers and duties for the area to become the city of 28 Staten Island except for those powers and duties as may be provided by 29 the provisions of this act. Powers and duties of the city of Staten 30 Island not yet in effect shall remain with the preceding municipality 31 until such time as those powers and duties are transferred to the city 32 of Staten Island pursuant to the provisions of this act. Except as 33 otherwise provided by this act, full powers and duties shall devolve to 34 the city of Staten Island on the first of July in the second year next 35 succeeding the date on which this act shall have become a law. The 36 following powers, duties and functions regarding the judiciary during 37 the judicial transition period and other matters as jointly determined 38 by the city of Staten Island and the preceding municipality in accord- 39 ance with the provisions as outlined elsewhere in this act, will be 40 shared by both municipalities. The city of Staten Island shall be estab- 41 lished on the first of July in the second year next succeeding the date 42 on which this act shall have become a law, on which date the city of 43 Staten Island shall possess full municipal powers and duties as are 44 provided under law and the preceding municipality shall cease to possess 45 municipal powers and duties regarding the city of Staten Island. 46 § 2-001. Charter of the city of Staten Island. The city charter of 47 the city of Staten Island is enacted to read as follows: 48 Charter of the City of Staten Island 49 Table of Contents 50 Preamble 51 Chapter 1 General Provisions 52 Chapter 2 Powers of the City 53 Chapter 3 Mayor 54 Chapter 4 Common Council 55 Chapter 5 Comptroller

S. 8578 6 1 Chapter 6 The Budgetary Process: Expense and Capital 2 Chapter 7 Planning Department 3 Chapter 8 Franchises 4 Chapter 9 Contracting 5 Chapter 10 Referendum and Amendment 6 Chapter 11 Property of the City 7 Chapter 12 Personnel Management 8 Chapter 13 Equal Employment Practices Commission 9 Chapter 14 Collective Bargaining 10 Chapter 15 Transitory Provisions 11 Chapter 16 Labor Relations 12 CHARTER OF THE CITY OF STATEN ISLAND 13 Preamble 14 The People of Staten Island, exercising their right to propose a 15 government of their choosing through which all people can be effectively 16 represented, do hereby adopt this Charter. 17 The birth of a city, must, of necessity, take place in an aura of 18 excitement and great expectations. When it occurs at a time when society 19 is experiencing strong institutional challenges in a climate of skepti- 20 cism, it places heavy burdens on those responsible for leadership to 21 sustain a commitment by the people to live and function together as a 22 community. 23 The provision of a structure of governance at the local level is an 24 extraordinary and crucial responsibility. Sophocles wisely observed that 25 "the city is the people." The City of Staten Island must place a high 26 premium on assuring meaningful participation of its citizenry in the 27 governmental decisions affecting their lives. 28 We must respect the principles of equality and of the social dignity 29 of all of our residents and provide for the complete development of the 30 individual, promoting actions which favor the advancement of men and 31 women in realizing their fullest potential. We must embrace policies 32 that promote and give effectiveness to the rights of every person, with 33 particular attention to those who face special challenges, in striving 34 for a full life. 35 We must assert a policy of favoring equal opportunity employment for 36 all women and men. We must foster a culture that is peaceful and non- 37 violent and that safeguards the rights of all inhabitants to carry out 38 their lawful activities on Staten Island. 39 We should give strong supportive efforts for the conservation and 40 defense of the environment along with the advancement of the cultural 41 and natural values that sustain them. We consent to be governed by the 42 new municipality in the belief that a smaller, localized city government 43 may effectively and responsibly balance the needs of the people with the 44 cost of providing municipal services. 45 The City of Staten Island can serve as a model for the promotion of 46 the common welfare, the guarantor of individual liberties and the guard- 47 ian of the social, spiritual, economic and cultural concerns of its 48 inhabitants. 49 We believe this act of self determination to be in the best interests 50 of the people of Staten Island and the people of the City of New York 51 and we hope that together, as sister cities, we can work cooperatively 52 in efforts of regional concern and for the betterment of New York State. 53 Chapter 1 54 General Provisions

S. 8578 7 1 § 1-01. Incorporation. 2 The citizens of the State of New York from time to time inhabitants of 3 the territory in the County of Richmond, included in the boundaries set 4 forth in section 1-02 of this chapter, shall be known as the City of 5 Staten Island, and shall be a municipal corporation in perpetuity under 6 the name of "The City of Staten Island." 7 § 1-02. Boundaries. 8 The City of Staten Island shall consist of all the territory known as 9 Richmond county, which shall contain all that part of the state, bounded 10 on the north by the center line of the Kill Van Kull which center line 11 would extend easterly to the extension of the center line of North River 12 and Upper New York Bay, then on the east by the extension of the afore- 13 mentioned center line of Upper New York Bay running southerly through 14 the Narrows between Richmond county and Kings county and continuing 15 through Lower New York Bay to the Atlantic Ocean, and bounded on the 16 south east by the Atlantic Ocean to the boundary of the state of New 17 York and the state of New Jersey at Raritan Bay, and on the west follow- 18 ing the center line of the Kill Van Kull and the center line of the 19 Arthur Kill which is the boundary between the state of New York and the 20 state of New Jersey, including Staten Island, Island of Meadows, Pralls 21 Island, Hoffman Island, Swinburne Island, that part of Shooters Island 22 within the state of New York, and all other islands or parts thereof 23 situated within the aforedescribed bounds. 24 Chapter 2 25 Powers of the City 26 § 2-01. Powers. 27 The city shall have and may exercise all powers necessary for local 28 self-government and any additional powers and authority which are now or 29 may be hereafter granted to it under the Constitution or laws of this 30 State, as fully and completely as though such powers were specifically 31 enumerated in this Charter and no enumerations of particular powers in 32 this Charter shall be held to be exclusive but shall be held to be in 33 addition to this general grant of powers. 34 § 2-02. Purposes. 35 All city powers shall be used to serve and advance the general 36 welfare, health, happiness, safety and aspirations of its inhabitants, 37 present and future, and to encourage their full participation in the 38 process of governance. 39 Chapter 3 40 Mayor 41 § 3-01. Executive power. 42 The executive power of the city shall be vested in and exercised by 43 the mayor as chief executive officer. 44 § 3-02. Election; term. 45 The mayor shall be elected at the first general election following the 46 effective date of this charter and every fourth year thereafter. The 47 mayor shall hold office for a term of four years commencing on the first 48 of January after each such election. 49 § 3-03. Qualifications. 50 The mayor shall be a citizen of the United States, a qualified elector 51 of the city, and shall have been a resident of the city for at least one 52 year immediately preceding his/her election. 53 § 3-04. Deputy mayor. 54 The mayor shall appoint and at pleasure remove a deputy mayor who 55 shall have such powers and duties as may be assigned by the mayor and

S. 8578 8 1 who shall act temporarily as mayor in case of the mayor's temporary 2 inability, absence or illness as is provided by this charter. 3 § 3-05. Removal of the mayor. 4 The mayor may be removed from office by the governor upon charges and 5 after service upon him or her of a copy of the charges and an opportu- 6 nity to be heard in his or her defense. Pending the preparation and 7 disposition of charges, the governor may suspend the mayor for a period 8 not exceeding thirty days. 9 § 3-06. Succession. 10 (a) In case of the suspension of the mayor from office, the mayor's 11 temporary inability to discharge the powers and duties of the office of 12 mayor by reason of sickness or otherwise, or the mayor's absence from 13 the city, the powers and duties of the office of mayor shall devolve 14 upon the deputy mayor or an acting mayor in case of a vacancy in the 15 office of deputy mayor pending a special election to fill the vacancy in 16 the office of mayor as provided in subdivision (c) of this section. 17 While so acting temporarily as mayor the deputy mayor or acting mayor 18 shall not exercise any power of appointment to or removal from office; 19 and shall not, until such suspension, inability or absence shall have 20 continued nine days, sign, approve or disapprove any local law or resol- 21 ution, unless the period during which the mayor can act thereon would 22 expire during said nine days in which case the deputy mayor or acting 23 mayor in case of a vacancy in the office of deputy mayor shall have the 24 power to disapprove the same within forty-eight hours before the time to 25 act expires. 26 (b) In case of a failure of a person elected as mayor to qualify, or a 27 vacancy in the office caused by the mayor's resignation, removal, death 28 or permanent inability to discharge the powers and duties of the office 29 of mayor, such powers shall devolve upon the deputy mayor or acting 30 mayor in case of a vacancy in the office of deputy mayor pending a 31 special election to fill the vacancy for the remainder of the unexpired 32 term in the office of mayor as provided in subdivision (c) of this 33 section, such special election to take place thirty days after the proc- 34 lamation that such vacancy exists. 35 (c) Within seven days of the occurrence of a vacancy in the office of 36 mayor, the council shall proclaim the date for the special election to 37 fill the vacancy required by this subdivision and such election shall 38 take place thirty days after said proclamation. The council shall 39 provide notice of such proclamation to the city clerk and board of 40 elections and publish notice thereof, and the board of elections shall 41 mail notice of such election to all registered voters within the city 42 and shall conduct such special election thirty days after the proclama- 43 tion. 44 (d) A party nomination of a candidate for the special election to fill 45 a vacancy in the office of mayor for the remainder of the unexpired term 46 shall be made in the manner prescribed by the rules of the party. 47 (e) An independent nominating petition for the nomination of candi- 48 dates to fill the vacancy must be signed by registered voters numbering 49 five per centum of the total number of votes cast for governor at the 50 last gubernatorial election in the city of Staten Island, excluding 51 blank and void votes, except that not more than two thousand signatures 52 shall be required upon any such petition. 53 (f) Any vacancy in the office of mayor that occurs after July tenth 54 and on or before September nineteenth in any year shall be filled at the 55 general election held in such year.

S. 8578 9 1 (g) Any vacancy that occurs on or after September twentieth in any 2 year and not later than thirty-seven days before the first Tuesday in 3 December shall be filled at a special election to be held on the first 4 Tuesday in December in such year. 5 A person elected to fill a vacancy in the office of mayor at a special 6 election shall take office immediately upon qualification and fill the 7 vacancy for the remainder of the unexpired term. 8 § 3-07. Appointment and removal of officers and employees. 9 (a) The mayor shall appoint the heads of administrations, departments, 10 all commissioners, and all other officers not elected by the people 11 including a city clerk, except as otherwise provided in this charter or 12 by law. 13 (b) The mayor, whenever in his or her judgment the public interest 14 shall so require, may remove from office any public officer holding 15 office by appointment from a mayor of the city, except officers for 16 whose removal other provision is made by law. No public officer shall 17 hold his or her office for any specific term, except as otherwise 18 provided by law. 19 § 3-08. General Powers. 20 (a) The mayor, subject to this charter, shall exercise all the powers 21 vested in the city, except as otherwise provided by law. 22 (b) The mayor shall have the power: 23 1. to supervise, direct and control, subject to law, the administra- 24 tive services and departments of government; 25 2. to see that the ordinances of the city and laws of the city and 26 state are properly administered and enforced; 27 3. to prepare and submit to the council an annual report of his or her 28 work, which shall be made public and which shall include a summary of 29 agency service goals, performance measures and actual performance rela- 30 tive to goals for each service delivery program and an appendix of those 31 programs which provide abatements or reductions of taxes for businesses 32 in the city; 33 4. to prepare and submit a budget message and an expense budget and 34 capital budget annually to the council for its consideration and neces- 35 sary action in accordance with this charter and the city code; 36 5. to call special sessions of the council; 37 6. to approve or to veto acts of the council in the manner prescribed 38 by this charter; 39 7. to inquire into the conduct of any city department, agency, board 40 or commission, except elected officials and their offices; and to make 41 investigation as to municipal affairs and, for that purpose, may subpoe- 42 na witnesses, administer oaths and compel production of books, papers 43 and other evidence. Failure to obey such subpoena or to produce books, 44 papers or evidence as ordered under this section shall be punishable as 45 a misdemeanor; 46 8. to create or abolish bureaus, divisions or positions within the 47 executive office of the mayor or city departments as he or she may deem 48 necessary to fulfill mayoral duties; 49 9. to delegate to or withdraw from any member of said office, speci- 50 fied functions, powers and duties, except the mayor's power to act on 51 local laws or resolutions of the council or to appoint or remove offi- 52 cials; 53 10. to perform all such duties as may be presented for the mayor in 54 this charter, or other law, or by act of the council. 55 (c) Notwithstanding any other provision of law, the mayor shall have 56 the powers of a finance board under the local finance law and may exer-

S. 8578 10 1 cise such powers without regard to any provision of law prescribing the 2 voting strength required for a resolution or action of such finance 3 board, provided, however, that whenever the mayor determines that obli- 4 gations should be issued and the amount thereof, the mayor shall certify 5 such determination to the comptroller who shall thereupon determine the 6 nature and term of such obligations and shall arrange for the issuance 7 thereof. 8 Chapter 4 9 Common Council 10 § 4-01. Legislative power. 11 The legislative power of the city shall be vested in and exercised by 12 the common council, hereinafter referred to as the council, except as 13 otherwise provided by this charter. 14 § 4-02. Number, election and terms of office of council members. 15 (a) The council shall consist of fifteen members each elected from 16 separate council districts. Eight council members shall be elected from 17 districts denominated "A" districts and seven council members shall be 18 elected from districts denominated "B" districts. The eight council 19 members who represent "A" districts shall be elected at the general 20 election to be held in the years ending in seven, one and five. The 21 seven council members who represent "B" districts shall be elected at 22 the general election to be held in the years ending in seven, nine and 23 three. 24 (b) The boundaries and designations of the council districts shall be 25 drawn and specified pursuant to section 5 of chapter 773 of the laws of 26 1989 and shall remain in effect until altered or changed in accordance 27 with the provisions of this charter. Council members shall be elected at 28 the first general election following the effective date of this charter, 29 except as otherwise provided by transition provisions. The term of 30 office of a council member shall begin on January first following such 31 election and shall be for either a four-year or two-year period as 32 provided in subdivision (a) of this section or until a successor is duly 33 elected and qualified. 34 § 4-03. Qualifications. 35 Each council member shall be a citizen of the United States and shall 36 have been resident of the city for one year immediately preceding his or 37 her election and shall reside in the district from which elected while 38 serving as a council member. Removal of residence from the city or from 39 the council district following election or during the term of office 40 shall constitute immediate forfeiture of office and a vacancy shall 41 exist in the district from which the council member was elected. 42 § 4-04. Organization. 43 The council shall determine the rules of its own proceedings at the 44 first stated meeting of the council in each year. The council by majori- 45 ty vote of all its members shall elect one member as speaker and such 46 other officers as it deems appropriate. 47 § 4-05. Vacancy. 48 (a) The office of a council member shall become vacant upon the 49 member's death, resignation, removal from office or forfeiture of office 50 in any manner authorized by law. A council member shall forfeit that 51 office if the council member violates any express prohibition of this 52 charter or lacks at any time during the term of office for which he or 53 she was elected any qualification for the office prescribed by the char- 54 ter or by law. 55 (b) Within seven days of the occurrence of a vacancy in the council, 56 the mayor shall proclaim the date for a special election to fill the

S. 8578 11 1 vacancy required by this subdivision and such election shall take place 2 thirty days after said proclamation. The mayor shall provide notice of 3 such proclamation to the city clerk and board of elections and publish 4 notice thereof, and the board of elections shall mail notice of such 5 election to all registered voters within the district in which the 6 vacancy has occurred and shall conduct such special election thirty days 7 after the proclamation. 8 (c) A party nomination of a candidate for the special election to fill 9 a vacancy in the council for the remainder of the unexpired term shall 10 be made in the manner prescribed by the rules of the party. 11 (d) An independent nominating petition for the nomination of candi- 12 dates to fill the vacancy must be signed by voters numbering five per 13 centum of the total number of votes cast in the district for governor at 14 the last gubernatorial election in the city, excluding blank and void 15 votes, or as provided by the New York state election law. 16 (e) Any vacancy that occurs in the council after July tenth and on or 17 before September nineteenth in any year shall be filled at the general 18 election held in such year. 19 (f) Any vacancy that occurs on or after September twentieth in any 20 year and not later than thirty-seven days before the first Tuesday in 21 December shall be filled at a special election to be held on the first 22 Tuesday in December in such year. 23 A person elected to fill a vacancy in the council at a special 24 election shall take office immediately upon qualification and fill the 25 vacancy for the remainder of the unexpired term. 26 § 4-06. Powers. 27 (a) All legislative power shall be vested in a council. 28 (b) The council shall have the following additional powers: 29 1. to employ or retain its own staff and consultants including a clerk 30 of the council; 31 2. to conduct investigations in accordance with the provisions of this 32 charter; 33 3. to designate an acting mayor within seventy-two hours of the occur- 34 rence of a vacancy in both the office of mayor and the office of deputy 35 mayor; 36 4. to approve appointments as provided in this charter, except as 37 otherwise mandated by law; 38 5. to exercise the power of removal as provided in this charter; 39 6. to override the veto of a mayor by a two-thirds vote of all the 40 members; 41 7. to disapprove within thirty days any proposed designation by the 42 department of city planning of a landmark, landmark site, interior land- 43 mark, scenic landmark or historic district, provided however, that in 44 the absence of any such disapproval the proposed designation shall 45 become effective thirty days after having been referred to the council 46 by the department of city planning; 47 8. to call a meeting at any time between the council and the mayor 48 jointly to discuss legislation or business of the city in general, and 49 by a two-thirds vote of all the members to compel the attendance of the 50 mayor at a council hearing; and 51 9. to exercise other powers conferred by this charter. 52 § 4-07. Clerk of the council. 53 (a) The council shall appoint a clerk who shall perform such duties as 54 may be prescribed by law. The clerk so appointed shall be the clerk of 55 the council and shall serve at the pleasure of the council. The clerk 56 shall attend the meetings of the council, keep a journal of its

S. 8578 12 1 proceedings and discharge such other duties as may be prescribed by this 2 charter or other law. 3 (b) The clerk shall keep each local law passed in a book provided for 4 that purpose, with proper indices, which book shall be deemed a public 5 record of such local laws, and each local law shall be attested by said 6 clerk. The clerk shall cause to be published all notices, advertising 7 matters or proceedings as required by the provisions of this charter or 8 by other law. It shall be the duty of the clerk to keep open for 9 inspection at all reasonable times the records and minutes of the 10 proceedings of the council. 11 § 4-08. Investigations. 12 The council shall have the power to investigate any matters within its 13 jurisdiction relating to the property, affairs, or government of the 14 city, or to any other powers of the council, or to the effectuation of 15 the purposes or provisions of this charter or any laws relating to the 16 city, and to incur expenses therefor which shall be a general city 17 charge in the absence of an appropriation. The council shall have the 18 power to require the attendance and examine and take testimony under 19 oath of such persons as it may deem necessary and to require the 20 production of books, accounts, papers and other evidence relative to the 21 inquiry kept by any person which may relate to such investigation or the 22 attendance of any person having knowledge of the subject matter of the 23 investigation. 24 § 4-09. Local laws. 25 (a) Except as otherwise provided by law, all legislative action by the 26 council shall be by local law. Every local law shall contain only one 27 subject. The title shall clearly refer to the subject matter. 28 (b) The council shall take no final action on any legislation until a 29 minimum of three days, exclusive of Sundays, has elapsed from the date 30 of its introduction, unless the mayor shall have certified as to the 31 necessity for its immediate passage and such local law be passed by the 32 affirmative vote of two-thirds of all the council members; provided 33 however that general plans, development plans and amendments and 34 revisions thereto shall not be so certified. 35 (c) Every local law passed by the council shall be certified by the 36 clerk of the council and shall be presented to the mayor for approval 37 prior to its effective date. The mayor shall sign the legislation within 38 ten days if approved, but, if not, shall return it to the council 39 together with a written statement of his or her objections. The council, 40 within thirty days may reconsider any legislation disapproved by the 41 mayor and may pass it by a two-thirds vote of all the members. If the 42 mayor fails to sign or return legislation to the council with reasons 43 for disapproval, it shall become law as of its effective date, thirty 44 days after submission to the mayor. 45 (d) No proposed local law or budget modification shall be voted on by 46 a council committee or the council unless it is accompanied by a fiscal 47 impact statement containing the following information: 48 1. the fiscal year in which the proposed law or modification would 49 first become effective and the first fiscal year in which the full 50 fiscal impact of the law or modification is expected to occur; 51 2. an estimate of the fiscal impact of the law or modification on the 52 revenues and expenditures of the city during the fiscal year in which 53 the law or modification is to first become effective, during the 54 succeeding fiscal year, and during the first fiscal year in which the 55 full fiscal impact of the law or modification is expected to occur; and 56 3. a list of sources of information used in its preparation.

S. 8578 13 1 (e) All agency heads shall promptly provide to any council committee 2 any information that it requests to assist it in preparing a fiscal 3 impact statement. 4 § 4-10. Districting commission. 5 (a) There shall be a districting commission consisting of seven 6 members appointed as provided in this section. 7 (b) Each member of the commission shall be a citizen of the United 8 States and shall have been a resident of the city for one year imme- 9 diately preceding his or her appointment. 10 (c) The majority leader in the council shall appoint three members of 11 the commission. 12 (d) The minority leader in the council shall appoint two members of 13 the commission. 14 (e) If only one political party has a council delegation, then the 15 chairpersons of the county committees of the political party with no 16 council delegation which, at the time of the last general election for 17 council preceding the time at which such appointments are required to be 18 made, had the second and third highest number of votes cast in that 19 election, shall each appoint one member of the commission. 20 (f) The mayor shall appoint two additional members who shall not be 21 members of the same political party. 22 (g) In the event of a vacancy by death, resignation or otherwise, a 23 new member enrolled in the same political party from which his or her 24 predecessor was selected shall be appointed in the same manner as the 25 member whose departure from the commission created the vacancy and shall 26 serve for the balance of the term remaining. 27 (h) The members of the commission shall elect one of the seven members 28 to serve as the chair of the commission. 29 § 4-11. Powers of the districting commission. 30 (a) Following each decennial census, the commission shall prepare a 31 plan for dividing the city into districts for the election of council 32 members. 33 (b) The commission shall submit its plan to the council for its final 34 adoption and such plan shall not be subject to any mayoral action in 35 order to become effective. 36 § 4-12. Community advisory boards. 37 (a) The common council is hereby authorized to create, by local law, 38 one or more community advisory board districts and corresponding commu- 39 nity advisory boards to consider the needs of such districts, and to 40 cooperate with, consult, assist and advise members of the common coun- 41 cil, as well as any public officer, agency, and local administrators of 42 such agencies, with respect to any matter relating to the welfare of the 43 residents of such districts. 44 (b) The number of community advisory boards and the number of members 45 appointed to serve on such board or boards shall be determined by the 46 common council as it deems appropriate. 47 (c) In addition, the boundary lines of the community advisory board 48 districts created hereunder shall be coterminous with the boundary lines 49 of one or more council districts so that no council district shall be 50 included in more than one community advisory board district. 51 (d) Members of the community advisory boards shall serve without 52 compensation and shall serve for not more than two (2) consecutive two- 53 year terms so as to maximize the opportunities for meaningful partic- 54 ipation in local government for all city residents, and to preserve the 55 spirit and long-standing tradition of excellent voluntarism on Staten 56 Island.

S. 8578 14 1 Chapter 5 2 Comptroller 3 § 5-01. Election; term. 4 The comptroller shall be elected by the electors of the city at the 5 same time and for the same term as this charter prescribes for the 6 mayor. The comptroller shall serve for a term of four years commencing 7 on the first of January following such election and until a successor is 8 elected and qualified. 9 § 5-02. Powers and duties. 10 (a) The comptroller shall have the following powers and duties: 11 1. to advise the mayor and the council on the financial condition of 12 the city or any phase thereof; 13 2. to make recommendations, comments and criticisms in regard to the 14 operations, fiscal policies and financial transactions of the city as he 15 or she may deem advisable; 16 3. to audit and investigate all matters relating to or affecting the 17 finances of the city, including without limitation the performance of 18 contracts and the receipt and expenditure of city funds, and for such 19 purpose shall have the power to require the attendance and examine and 20 take the testimony under oath of such persons as the comptroller may 21 deem necessary; 22 4. to submit an annual report to the mayor and the council showing 23 revenues, receipts and expenditures, the sources from which the revenues 24 and funds are derived and how they have been disbursed; 25 5. to inspect, revise and prescribe the form of reports and accounts 26 of the agencies, trusts, the council and units of government; 27 6. to audit all agencies, trusts, the council and units of government 28 whenever the comptroller decides it is necessary or is directed to 29 conduct such an audit either by the mayor or by the council. The comp- 30 troller shall be entitled to obtain access to agency records required by 31 law to be kept confidential, other than records which are protected by 32 the privileges for attorney-client communications, attorney work 33 products, or material prepared for litigation, upon a representation by 34 the comptroller that necessary and appropriate steps will be taken to 35 protect the confidentiality of such records. 36 (b) The comptroller shall establish a regular auditing cycle to ensure 37 that one or more of the programs or activities of each city agency, or 38 one or more aspects of each agency's operations, is audited at least 39 once every four years. The audits conducted by the comptroller shall 40 comply with generally accepted government auditing standards. In accord- 41 ance with such standards, and before any draft or final audit or audit 42 report, or portion thereof, may be made public, the comptroller shall 43 send a copy of the draft audit or audit report to the head of the audit- 44 ed agency and provide the agency, in writing, with a reasonable deadline 45 for its review and response. The comptroller shall include copies of any 46 such agency response in any draft or final audit or audit report, or 47 portion thereof, which is made public. The comptroller shall send copies 48 of all final audits and audit reports to the mayor and the council. 49 (c) The comptroller shall establish for his or her office and for all 50 city agencies a uniform system of accounting and reporting based on 51 generally accepted accounting principles. 52 (d) The comptroller shall perform such other functions and duties as 53 may be required by other provisions of this charter or by law. 54 § 5-03. Qualifications.

S. 8578 15 1 The comptroller shall be a citizen of the United States, a qualified 2 elector of the city, and shall have been a resident of the city for at 3 least one year immediately preceding his or her election. 4 § 5-04. Deputy comptroller. 5 The comptroller shall appoint and at pleasure remove a deputy comp- 6 troller who in case of a vacancy in the office or in case of the illness 7 or inability of the comptroller to act shall have the same powers and 8 perform the same duties as the comptroller. The qualifications of the 9 nominee for the position of deputy comptroller shall be submitted to the 10 council by the comptroller and the nominee may be requested to appear in 11 person before the council to respond to questions concerning those qual- 12 ifications. 13 § 5-05. Vacancy. 14 (a) Any vacancy in the office of comptroller shall be filled by 15 special election in accordance with the provisions of this charter. In 16 the event of a vacancy in the office of the comptroller or whenever by 17 reason of sickness, absence from the city or suspension from office, the 18 comptroller shall be prevented from attending to the duties of the 19 office, the deputy comptroller shall act as comptroller. 20 (b) Within seven days of the occurrence of a vacancy in the office of 21 comptroller, the mayor shall proclaim the date for the special election 22 required by this subdivision and such election shall take place thirty 23 days after said proclamation. The mayor shall provide notice of such 24 proclamation to the city clerk and board of elections and publish notice 25 thereof, and the board of elections shall mail notice of such election 26 to all registered voters within the city and shall conduct such special 27 election thirty days after the proclamation. 28 (c) A party nomination of a candidate for the special election to fill 29 a vacancy in the office of comptroller for the remainder of the unex- 30 pired term shall be made in the manner prescribed by the rules of the 31 party. 32 (d) An independent nominating petition for the nomination of candi- 33 dates to fill the vacancy must be signed by registered voters numbering 34 five per centum of the total number of votes cast for governor at the 35 last gubernatorial election in the city, excluding blank and void votes, 36 except that not more than two thousand signatures shall be required upon 37 any such petition. 38 (e) Any vacancy in the office of comptroller that occurs after July 39 tenth and on or before September nineteenth in any year shall be filled 40 at the general election held in such year. 41 (f) Any vacancy that occurs on or after September twentieth in any 42 year and not later than thirty-seven days before the first Tuesday in 43 December shall be filled at a special election to be held on the first 44 Tuesday in December in such year. 45 A person elected to fill a vacancy in the office of comptroller at a 46 special election shall take office immediately upon qualification and 47 fill the vacancy for the remainder of the unexpired term. 48 Chapter 6 49 The Budgetary Process: 50 Expense and Capital 51 § 6-01. Budgetary responsibilities of the mayor. 52 (a) The mayor shall annually prepare and submit to the council prelim- 53 inary and executive budgets, each of which shall present a complete 54 financial plan for the city and its agencies for the ensuing fiscal year 55 and the three succeeding fiscal years. Each such budget shall consist of

S. 8578 16 1 three parts: the expense budget, which shall set forth proposed appro- 2 priations for the operating expenses of the city including debt service, 3 and interfund transfers; the capital budget and program, which shall set 4 forth proposed appropriations for capital projects; and the revenue 5 budget, which shall set forth the estimated and anticipated revenues and 6 receipts of the city, as well as any other anticipated sources and uses 7 of funds. 8 (b) The mayor shall appoint the director of the budget who shall 9 assist the mayor in the preparation and the administration of the budg- 10 et. The director shall perform all such duties in regard to the budget 11 and related matters as the mayor may direct. The director shall have the 12 power personally or through representatives, to survey each agency for 13 the purpose of ascertaining its budgetary requirements. The director may 14 require any agency, or any officer or employee, to furnish data and 15 information and to answer inquiries pertinent to the exercise of any of 16 the director's duties in regard to the budget and related matters. 17 § 6-02. Spending pursuant to appropriations. 18 (a) No money, except for grants or gifts from private entities, shall 19 be paid from any fund under the management of the city, or any fund 20 under the management of any agency or officer of the city, or any other 21 entity the majority of the members of whose board are city officials or 22 are appointed directly or indirectly by city officials, except in 23 pursuance of an appropriation by the council or other specific legal 24 authorization provided, however, that: 25 1. if at any time the council shall fail to make an appropriation for 26 the payment of debt service on any debts of the city as they fall due, 27 or for the payments to the several sinking funds, the officer responsi- 28 ble for the collection of taxes shall set apart, from the first revenues 29 thereafter received applicable to the general fund of the city, a sum 30 sufficient to pay such amounts and shall so apply such sum; and 31 2. money, the ownership and equitable title of which belongs to an 32 individual, corporation, organization or government other than the city 33 and which is being held by any agency or officer of the city pending 34 transfer of such money to such individual, corporation, organization or 35 government in accordance with the terms and conditions pursuant to which 36 it was placed in the custody of such agency or officer, may be trans- 37 ferred to such individual, corporation, organization or government by 38 such agency or officer without an appropriation by law provided such 39 transfers are made in accordance with such terms and conditions; and 40 3. money or other financial resources may only be transferred from one 41 fund to another without specific statutory authorization for such a 42 transfer if that money or those other financial resources are being 43 loaned temporarily to such other fund and an accurate accounting and 44 reporting of the balance of financial resources in each fund and of the 45 amount due by each fund to each other fund is made at the end of each 46 month; and 47 4. grants or gifts from private entities exempt from the requirements 48 of this section, and expenditures of such funds, shall be subject to 49 disclosure, at least annually, by the responsible agency, officer or 50 entity in a form and containing such information as the mayor shall 51 prescribe for this purpose by rule. 52 (b) The head of each agency of the city, and each entity the majority 53 of the members of whose board are city officials or individuals 54 appointed directly or indirectly by city officials, shall, on or before 55 the fifteenth of October in each year, submit to the mayor and the coun- 56 cil, in such form as the mayor shall prescribe, a statement of the

S. 8578 17 1 sources, amounts and disposition of all money received by such agency or 2 entity, or by a unit or officer of such agency during the preceding 3 fiscal year, other than money appropriated for the use of such agency or 4 entity by the council, or money paid by such agency or entity into the 5 city treasury and reported in the annual report of the comptroller for 6 such fiscal year. The mayor shall ensure that copies of such statements 7 are available for public inspection, and shall designate a city officer 8 to maintain copies of such statements for such purpose. 9 § 6-03. Fiscal year. 10 The fiscal year of the city shall commence on July first in each year 11 and shall terminate at midnight on the ensuing June thirtieth. 12 § 6-04. Budgetary process and timeline. 13 Except where noted otherwise, each step should be taken not later than 14 the dates indicated below. 15 (a) Ten-year capital strategy. 16 1. Draft: November first in each even-numbered year. 17 2. Report and hearing on the first draft: January sixteenth in each 18 odd numbered year. 19 3. Mayor's issuance: April twenty-sixth in each odd numbered year. 20 4. Comparison of adopted budget and ten-year capital strategy: thirty 21 days after the budget is adopted in each year. 22 (b) Revenue estimation report of the comptroller and mayor. 23 1. The comptroller shall certify to the mayor the actual revenues for 24 the previous fiscal year: October thirty-first. 25 2. The mayor shall report comparing actual revenues to estimated 26 revenues in the budget as adopted for the previous fiscal year: November 27 fifteenth. 28 (c) Departmental estimates and the mayor's preliminary budget public 29 hearings: such date as the mayor may direct. 30 (d) Report of the comptroller on capital debt and obligations: Decem- 31 ber first. 32 (e) Report of the comptroller on the state of the city's finances to 33 the council: December fifteenth. 34 (f) Preliminary certificate of the mayor on capital debt and obli- 35 gations to the council and comptroller: January sixteenth. At any time 36 up to the submission of the executive capital budget to the council, the 37 mayor may amend such preliminary certificate. 38 (g) Preliminary budget submitted to the council: January sixteenth. 39 (h) Finance commissioner's estimate of assessed valuation, and state- 40 ment of taxes due and uncollected submitted to the mayor and council: 41 February fifteenth. 42 (i) Comptroller's statement of debt service: March first. 43 (j) The council's operating budget. March tenth: the council shall 44 approve and submit to the mayor estimates of its financial needs for the 45 ensuing fiscal year. 46 (k) Council committees' preliminary budget hearings on: 47 1. program objectives and fiscal implications of preliminary budget, 48 draft ten year capital strategy, city planning director's report on the 49 draft strategy, and the status of capital projects and expense appropri- 50 ations previously authorized; and 51 2. recommendations for any changes in the unit of appropriation struc- 52 ture, or any change in the memorandum of understanding of the terms and 53 conditions regarding such units of appropriations; and 54 3. the council's findings and the net effect of the changes recom- 55 mended on the preliminary capital budget shall not exceed the maximum 56 amount set forth in the preliminary certificate: March twenty-fifth.

S. 8578 18 1 (l) Executive budget, the four-year financial plan and budget message 2 with any accompanying reports and schedules submission for the ensuing 3 fiscal year: April twenty-sixth. 4 (m) Proposed local laws and home rule requests necessary to implement 5 the recommendations made in the executive budget: as soon after April 6 twenty-sixth as is practicable. 7 (n) Executive budget hearings: the council shall hold public hearings 8 on the budget as presented by the mayor between May sixth and twenty- 9 fifth. 10 (o) Amendment and adoption of the executive budget: by June fifth. 11 1. The council may alter the contents of the budget within the total 12 revenues estimated by the mayor and the maximum debt for capital, except 13 for the amounts set aside for the repayment of debt. 14 2. The budget when adopted by the council shall become effective imme- 15 diately, except appropriations for the council or appropriations added 16 to the mayor's executive budget by the council or any changes in terms 17 and conditions or in the memorandum of understanding regarding such 18 terms and conditions shall be subject to the mayor's veto. 19 3. If an expense budget has not been adopted by the fifth of June, the 20 expense budget and tax rate adopted as modified for the current fiscal 21 year shall be deemed to have been extended for the new fiscal year until 22 such time as a new expense budget has been adopted. 23 4. If a capital budget and a capital program have not been adopted by 24 the fifth of June the unutilized portion of all prior capital appropri- 25 ations shall be deemed reappropriated. 26 (p) Veto of the mayor. 27 1. The mayor, not later than the fifth day after the council has acted 28 upon the budget or capital program submitted with the executive budget, 29 may disapprove: 30 (i) any increase or addition to any such bill or program; 31 (ii) any change in any term or condition of the budget; 32 (iii) any change in a memorandum of understanding regarding the terms 33 and conditions; or 34 (iv) any item, term, condition, or provision of a memorandum included 35 in the budget. The mayor's objections shall be returned in writing to 36 the council by such date. 37 2. The council by a two-thirds vote of all the members may override 38 any disapproval of the mayor; however, if no action by the council is 39 taken within ten days of such disapproval, the expense budget shall be 40 deemed adopted as modified by the mayor's disapprovals. 41 (q) Statement of the amount of the budget and estimate by the mayor. 42 1. The mayor shall submit to the council, immediately upon the 43 adoption of a budget, a statement of the amount of the budget as 44 approved by the council for the ensuing fiscal year and the mayor shall 45 prepare and submit to the council not later than the fifth of June an 46 estimate of the probable amount of: 47 (i) receipts into the city treasury during the ensuing fiscal year 48 from all the sources of revenue of the general fund; and 49 (ii) all receipts other than those of the general fund and taxes on 50 real property. The mayor may include in the statement of the amount of 51 the budget as approved by the council a confirmation of such amount, and 52 thereby waive mayoral veto power. 53 2. If, as a result of the exercise of the mayor's veto, the amount of 54 the budget for the ensuing fiscal year differs from the amount of the 55 budget approved by the council, not later than two days after the budget 56 is finally adopted the mayor shall prepare and submit to the council a

S. 8578 19 1 statement setting forth the amount of the budget for the ensuing fiscal 2 year, and the council shall, if necessary, fix new annual tax rates. 3 3. The mayor, prior to establishing the final estimate of revenues for 4 the ensuing fiscal year as required by this section, shall consider any 5 alternative estimate of revenues and which is accompanied by a statement 6 of the methodologies and assumptions upon which such estimate is based 7 in such detail as is necessary to facilitate official and public under- 8 standing of such estimates. 9 4. Any person or organization may, prior to May fifteenth, submit to 10 the mayor an official alternative estimate of revenues for consideration 11 by the mayor. Such estimate shall be in a form prescribed by the mayor. 12 (r) Fixing of tax rates. 13 1. The council shall fix the annual tax rates immediately upon the 14 approval of the budget. The council shall deduct the total amount of 15 receipts as estimated by the mayor from the amount of the budget, for 16 the ensuing fiscal year, and shall cause to be raised by tax on real 17 property such sum as shall be as nearly as possible but not less than, 18 the balance so arrived at, by fixing tax rates in cents and thousandths 19 of a cent upon each dollar of assessed valuation. The tax rates shall be 20 such as to produce a balanced budget within generally accepted account- 21 ing principles for municipalities. 22 2. If a budget has not been adopted by the fifth of June, the tax 23 rates adopted for the current fiscal year shall be deemed to have been 24 extended for the new fiscal year until such time as a new budget is 25 adopted. 26 3. In the event the mayor exercises the veto power, the council shall, 27 if necessary, fix new annual rates not later than the date the budget is 28 finally adopted, in accordance with the requirements of paragraph one of 29 subdivision (s) of this section. 30 (s) Completing the assessment rolls and fixing of tax rates. 31 Notwithstanding the provisions of the above subdivisions or any other 32 provisions of law to the contrary: 33 1. if the city council has not fixed the tax rates for the ensuing 34 fiscal year on or before the fifth of June, the commissioner of finance 35 shall be authorized to complete the assessment rolls using estimated 36 rates and to collect the sums therein mentioned according to law. The 37 estimated rates shall equal the tax rates for the current fiscal year; 38 2. if, subsequent to the fifth of June, the council shall, fix the tax 39 rates for the ensuing fiscal year at percentages differing from the 40 estimated rates, real estate tax payments shall nevertheless be payable 41 in accordance with paragraph one of this subdivision at the estimated 42 rates. However, in such event, prior to the first of January in such 43 fiscal year, the commissioner of finance shall cause the completed 44 assessment rolls to be revised to reflect the tax rates fixed by the 45 council, and an amended bill for the installment or installments for 46 such fiscal year due and payable on or after the first of January shall 47 be submitted to each taxpayer in which whatever adjustment may be 48 required as a result of the estimated bill previously submitted to the 49 taxpayer shall be reflected. 50 (t) Appropriation, certification and publication. 51 Not later than the day after the budget is finally adopted the budget 52 and the several amounts therein specified as appropriations or units of 53 appropriation shall be and become appropriated to the several purposes 54 therein named. The budget shall thereupon be filed in the offices of the 55 comptroller and the city clerk, and shall be published forthwith. 56 (u) Council completion of assessment rolls.

S. 8578 20 1 At such annual meeting to adopt the budget the council shall cause to 2 be set down in the assessment rolls, opposite to the several sums set 3 down as the valuation of real property, the respective sums, in dollars 4 and cents, to be paid as tax thereon, rejecting the fractions of a cent. 5 It shall also cause to be added and set down the aggregate valuations of 6 the real property, and shall transmit to the comptroller of the state by 7 mail a certificate of such aggregate valuation. 8 (v) Collection of real property tax. 9 1. Immediately upon the completion of the assessment rolls, the city 10 clerk shall produce the proper warrants authorizing and requiring the 11 commissioner to collect the several sums therein mentioned according to 12 law. Such warrants need be signed only by the speaker of the council and 13 countersigned by the city clerk. Immediately thereafter and on or 14 before the thirtieth of June, the assessment rolls of the city as 15 corrected according to law and finally completed, or a fair copy there- 16 of, shall be delivered by the speaker to the commissioner with the prop- 17 er warrants, so signed and counter signed, annexed thereto. At the same 18 time the speaker shall notify the comptroller of the amount of taxes in 19 each book of the assessment rolls so delivered. 20 2. The commissioner upon receiving the assessment rolls and warrants 21 shall immediately cause the assessment rolls and warrants to be filed 22 with the city clerk. 23 (w) Mayor's financial plan update: thirty days after budget adopted. 24 § 6-05. Format of expense budget departmental estimates, preliminary 25 expense budget, and executive expense budget. 26 (a) The expense budget departmental estimates, the preliminary expense 27 budget, and the executive expense budget for each year shall consist of 28 proposed units of appropriation for personal service and proposed units 29 of appropriation for other than personal service for the ensuing fiscal 30 year. 31 (b) Each agency head, for the departmental estimates, and the mayor, 32 for the executive budget, shall submit: 33 1. a statement of the impact of the proposed units of appropriation on 34 the level of services to be provided during the ensuing fiscal year; and 35 2. for each community within the city as identified in the council's 36 hearings on local and neighborhood budget needs, a written response to 37 each of the expense budget priorities included in the committee's recom- 38 mendations of budget priorities submitted in accordance with provisions 39 of this charter, including the disposition of each such priority and a 40 meaningful explanation of any disapprovals contained in such estimates 41 or budget. 42 (c) Each proposed unit of appropriation shall represent the amount 43 requested for personal service or for other than personal service for a 44 particular program, purpose, or activity within an agency, department, 45 organization or institution; provided, however, that a single unit of 46 appropriation for personal service or a single unit of appropriation for 47 other than personal service may represent the amount requested for more 48 than one particular program, purpose, or activity for an agency, depart- 49 ment, organization or institution if the council has adopted, on the 50 recommendation of the mayor, or if the council has adopted on its own 51 initiative and the mayor has approved, a resolution setting forth the 52 names, and a statement of the programmatic objectives, of each program, 53 purpose, or activity for an agency, department, organization, or insti- 54 tution to be included in such a single unit of appropriation. Copies of 55 such resolutions must be included as an appendix to any preliminary 56 budget, executive budget, and adopted budget to which they apply. If,

S. 8578 21 1 in accordance with such a resolution, a proposed unit of appropriation 2 for other than personal service shall represent the total amount 3 requested for other than personal service for more than one proposed 4 unit of appropriation for personal service, the amount of such unit of 5 appropriation for other than personal service which is allocable to each 6 unit of appropriation for personal service shall be set forth for infor- 7 mational purposes at the end of each such unit of appropriation for 8 personal service. If, in accordance with such a resolution, a proposed 9 unit of appropriation for personal service shall represent the total 10 amount requested for personal service for more than one proposed unit of 11 appropriation for other than personal service, the amount of such unit 12 of appropriation for personal service which is allocable to each unit of 13 appropriation for other than personal service shall be set forth for 14 informational purposes at the end of each such unit of appropriation for 15 other than personal service. 16 (d) Each proposed unit of appropriation contained in the departmental 17 estimates, the preliminary expense budget and the executive expense 18 budget shall be accompanied by a statement of the programmatic objec- 19 tives of the program, purpose, activity for the agency, department, 20 organization or institution involved. 21 (e) Each proposed unit of appropriation contained in the departmental 22 estimates and the executive budget shall be supported by line items 23 showing how the total amount of such unit is determined. 24 (f) The departmental estimates shall be in such form and contain such 25 further information as may be required by the mayor or by law. Such 26 departmental estimates shall be public records and which shall at all 27 reasonable times be open to public inspection. 28 (g) For each city agency that has local service districts within 29 communities as defined by local law, where practicable, shall contain a 30 statement of proposed direct expenditures in meaningful categories of 31 information, in each such service district. 32 § 6-06. Preliminary expense budget. 33 The preliminary expense budget shall contain proposed expenditures and 34 a forecast of revenues for the ensuing fiscal year, including, for each 35 tax revenue source which represents five percent or more of the total 36 forecast of tax revenues, a detailed statement of the methodology and 37 assumptions used to determine the forecast of revenues estimated to be 38 received from such source in sufficient detail to facilitate official 39 and public understanding of the manner in which such forecasts are made, 40 shall indicate proposed units of appropriations for personal service and 41 for other than personal service, shall include a financial plan covering 42 estimates of expenditures and revenues for the four ensuing fiscal years 43 in such years, shall include the departmental estimates of agency 44 expenditures for the ensuing fiscal year together with proposed sources 45 of revenue for each unit of appropriation specified therein and shall 46 present a plan to ensure balance between the expense and revenue budgets 47 during the ensuing fiscal year. 48 § 6-07. Contents of the executive expense budget. 49 (a) There shall be included in the budget: 50 1. Units of appropriation, prepared according to this chapter, in such 51 amounts and upon such terms and conditions as may be determined by the 52 mayor. Such appropriations shall include: 53 (i) the amounts required by law to be appropriated to the several 54 sinking funds as certified by the comptroller; 55 (ii) the amount required to pay the interest and principal of city 56 obligations as certified by the comptroller;

S. 8578 22 1 (iii) an amount, as certified by the comptroller, equal to the average 2 of all expenditures during each of the five preceding fiscal years for 3 the payment of the expense of the removal of snow and ice, exclusive of 4 salaries and wages of regular employees of the city except for overtime 5 work and for work on Sundays and holidays, and exclusive of the purchase 6 of equipment; 7 (iv) the several amounts which are payable from sources other than the 8 real estate tax levy, provided however that amounts appropriated pursu- 9 ant to chapter nine of this charter which are allocable to a particular 10 program, purpose, activity or institution, shall be included for infor- 11 mational purposes only; 12 (v) such other amounts as may be required by law; 13 (vi) such amounts as shall be determined in the manner provided in 14 this chapter to be necessary to pay the expenses of conducting the busi- 15 ness of the city for the ensuing fiscal year and for other lawful public 16 purposes; and 17 (vii) a reserve for unanticipated contingencies. 18 2. An identification of the proposed appropriations, being proposed by 19 agency and project type and, within project type, by personal service 20 and other than personal service, for the maintenance of all major 21 portions of the capital plant, as such terms are defined in section 6-16 22 of this chapter. 23 3. The terms and conditions under which appropriations shall be admin- 24 istered. 25 (b) All such units of appropriation and other amounts shall be set 26 forth without deduction of revenues from any source except as otherwise 27 provided by law. 28 (c) The budget message, which shall not be deemed a part of the budg- 29 et, shall include: 30 1. an explanation; 31 2. itemized information and supporting schedules; 32 3. recommendations for any changes in revenue sources and fiscal oper- 33 ations; 34 4. an itemized statement of the actual revenues and receipts and 35 accruals of the general fund and of all other revenue sources; 36 5. a listing of the sources and amounts of all revenues and other 37 monies of a nonrecurring nature; 38 6. a four-year financial plan, containing: 39 (i) for each agency, for all existing programs, forecasts of expendi- 40 tures for the ensuing fiscal year and the succeeding three fiscal years 41 at existing levels of service; 42 (ii) forecasts of revenue by source from existing sources of revenue 43 for the ensuing fiscal year and the succeeding three fiscal years; and 44 (iii) for each new or expanded program, an indication of when such 45 program is projected to be fully implemented and a forecast of the annu- 46 al recurring costs for such program or program expansion after it is 47 fully implemented; 48 7. for each agency, a comparison of the proposed appropriations for 49 the ensuing fiscal year; 50 8. an explanation of principal changes in performance goals and indi- 51 cators; 52 9. an itemized statement, covering the city's entire capital plant, 53 except for those portions of the capital plant which have been committed 54 to the care and control of the board of education; 55 10. a presentation of the maintenance activities proposed by the mayor 56 to be completed during the ensuing fiscal year;

S. 8578 23 1 11. a statement of any substantive changes in the methodology and 2 assumptions used to determine the revenue estimates; 3 12. a statement of the implications for the orderly development of the 4 city; and 5 13. a certificate setting forth the maximum amount of debt and 6 reserves. 7 § 6-08. Adoption of expense budget and memorandum of understanding. 8 Adoption of expense budget with regard to a memorandum of understand- 9 ing contained in the terms and conditions. 10 (a) The council may increase, decrease, add or omit any amount in the 11 expense budget as submitted by the mayor, or change any terms and condi- 12 tions of the amount in that category, as stipulated in this chapter; the 13 mayor may disapprove any increase or addition to the amounts in the 14 categories, or any change in any term and condition of the budget, as 15 stipulated in this chapter, the mayor's disapproval may be overridden by 16 a two-thirds vote of all of the members of the council. As part of these 17 procedures the final adopted budget shall have within its terms and 18 conditions a memorandum of understanding, the final format and/or the 19 actual character of which shall be determined jointly by the actions of 20 the council and mayor consistent with the provisions for adopting a 21 local law. Such memorandum of understanding may include the provisions 22 by which the executive may have to schedule the timing and amounts of 23 expenditure or delay of expenditure and in what ways those expenditures 24 may be scheduled or delayed and if agreed to through the normal 25 provisions of adopting the budget, the priority of re-scheduling and or 26 delaying those appropriated expenditures or any part thereof those units 27 of appropriations. These details of the memorandum of understanding are 28 not to preclude or substitute for normal budget modification procedures 29 as detailed below; they are intended to deal with those circumstances 30 not covered by budget modification and/or normal impoundment procedures 31 as detailed below. 32 (b) All spending for services shall be in accordance with the terms 33 and conditions of the expense budget as adopted; provided, however, that 34 during any fiscal year the mayor shall notify the council of any 35 proposed modification of such a term or condition, at least thirty days 36 before the intended effective date of the modification in the term or 37 condition. These provisions are not to affect, hinder or substitute for 38 the normal procedures regarding budget modification or impoundment as 39 stipulated elsewhere in this chapter. 40 § 6-09. Appropriations for goods, services or construction. 41 Appropriations for the procurement of goods, services or construction 42 or the provision of services, utilities, or facilities by a department 43 responsible for general services for other agencies and institutions in 44 accordance with the authority of a department responsible for general 45 services under the provisions of this charter shall be made to a depart- 46 ment responsible for general services but shall be segregated under the 47 name of the agency or institution for which they are intended and shall 48 be considered and accounted for as appropriated for such agency or 49 institution. Nothing herein contained shall prevent the designation of 50 part of such appropriations as a general stores account or under other 51 appropriate designation to enable a department responsible for general 52 services to maintain a stock in anticipation of requirements or to 53 provide services, utilities or facilities for joint use by more than one 54 agency or institution. 55 § 6-10. Expense budget administration.

S. 8578 24 1 (a) Except as otherwise provided by law, no unit of appropriation 2 shall be available for expenditure by any city agency until schedules 3 fixing positions and salaries and setting forth other expenses within 4 the units of appropriation are established pursuant to the adopted budg- 5 et, the administration of which is subject to the provisions of this 6 chapter, the state civil service law, and other applicable law. 7 (b) The mayor shall establish and may modify for each agency: 8 1. quarterly spending allotments for each unit of appropriation and 9 2. aggregate position and salary limits for each unit of appropri- 10 ation, which shall be made available for public review upon adequate 11 notice. No agency shall expend any sum in excess of such quarterly 12 spending allotments, or exceed aggregate position and salary limits. The 13 mayor may set aside specified sums as necessary reserves which shall not 14 be included in the quarterly spending allotments until released by the 15 mayor. Each agency shall administer all monies appropriated or available 16 for programs and purposes of the agency in accordance with quarterly 17 allotment plans proposed by the agency and approved or modified by the 18 mayor. Each such plan shall set forth by units of appropriation for the 19 quarter of the fiscal year during which it is to remain in effect: 20 (i) rates of expenditures for personal services and other than 21 personal services; 22 (ii) ceilings on the total number of uniformed, civilian and pedagog- 23 ical employees; and 24 (iii) the total amount of funds to be spent or committed by the agency 25 during such quarter. 26 (c) The mayor shall keep informed during the course of each fiscal 27 year, of the progress of expenditures and the receipt of revenues, and 28 it shall be the duty of all agencies, when requested by the mayor, to 29 supply all information needed for this purpose. 30 (d) The mayor may assume direct responsibility for the administration 31 of the schedule required to be filed by the agency head pursuant to 32 subdivision (a) of this section when in the mayor's judgment the fiscal 33 condition of the city so requires or when an agency: 34 1. is expending funds in excess of the quarterly spending allotments; 35 2. is otherwise not complying with spending allotments or aggregate 36 position and salary limits; or 37 3. is not maintaining adequate accounts pursuant to requirements of 38 this charter. 39 (e) Whenever the mayor determines, pursuant to the provisions of this 40 charter or other relevant statutes, that the full amount of any appro- 41 priation should not be available for expenditure during the fiscal year, 42 the mayor shall notify the council of such determination and the impli- 43 cations and consequences of those impoundments for service levels and 44 programmatic goals affected. The mayor shall respond in writing to a 45 request by the council for an explanation of why an appropriation should 46 not be expended. 47 (f) The head of each agency shall establish the procedure by which 48 charges and liabilities may be incurred on behalf of the agency. Such 49 procedures shall ensure that no officer or employee, on behalf of or in 50 the name of the agency, shall incur a liability or an expense for any 51 purpose in excess of the amount appropriated or otherwise authorized 52 therefor, and no charge, claim or liability shall exist or arise against 53 the city for any sum in excess of the amount appropriated or otherwise 54 authorized for the particular purpose. 55 § 6-11. Budget modification.

S. 8578 25 1 (a) Subject to the quarterly spending allotments and aggregate posi- 2 tion and salary limits established pursuant to applicable provisions of 3 this charter, of the state civil service law and of other law, changes 4 in schedules, within units of appropriation, may be made by the head of 5 each agency. Any such changes shall be reported to the mayor and the 6 comptroller not more than ten days after the effective date thereof, and 7 shall be made available for public review upon adequate notice. 8 (b) The mayor during any fiscal year may transfer part or all of any 9 unit of appropriation to another unit of appropriation, except that when 10 any such transfer: 11 1. shall be from one agency to another; or 12 2. shall result in any unit of appropriation having been increased or 13 decreased by more than five per centum or fifty thousand dollars, which- 14 ever is greater, from the budget as adopted for such unit of appropri- 15 ation, the mayor shall notify the council of the proposed action. Within 16 thirty days after the first stated meeting of the council following the 17 receipt of such notice, the council may disapprove the proposed action. 18 Written notice of any transfer pursuant to this subdivision shall be 19 given to the comptroller and shall be published as soon as possible 20 after such transfer. 21 (c) The provisions of this section shall not be deemed to authorize 22 any transfer from appropriations required by law. 23 (d) The council may during any fiscal year transfer part or all of any 24 unit of appropriation within the council appropriation to any other 25 council unit of appropriation for any of its programs or projects or for 26 any other purpose, solely by adoption of a council resolution. Each such 27 transfer shall be published and written notice thereof shall be given to 28 the mayor and to the comptroller not less than ten days before the 29 effective date thereof. 30 (e) The procedures and required approvals pursuant to the amendment, 31 adoption of the budget, veto of the mayor and appropriation, certif- 32 ication and publication of the budget, without regard to the dates spec- 33 ified therein, shall be followed in the case of: 34 1. any proposed amendment to the budget respecting the creation of new 35 units of appropriation, 36 2. the appropriation of new revenues from any source except for reven- 37 ues from federal, state or private sources in regard to the use of which 38 the city has no discretion provided, however, that the mayor shall give 39 notice to the council of the receipt and proposed utilization of any 40 such revenues, or 41 3. the proposed use by the city of previously unappropriated funds 42 received from any source. Any request by the mayor respecting an amend- 43 ment to the budget that involves an increase in the budget shall be 44 accompanied by a statement of the source of current revenues or other 45 identifiable and currently available funds required for the payment of 46 such additional amounts. 47 § 6-12. Quarterly account of council budget. 48 The council shall be required to publish quarterly accounting of its 49 actual and planned expenditures, in sufficient detail to indicate the 50 positions and their purposes which have been funded, as well as the 51 activities and categories of materials and supplies purchased. 52 § 6-13. General fund. 53 All revenues of the city, of every administration, department, board, 54 office and commission thereof, and of every other division of government 55 within the city, from whatsoever source except taxes on real estate, not

S. 8578 26 1 required by law to be paid into any other fund or account shall be paid 2 into a fund to be termed the "general fund." 3 § 6-14. Expenditure reports. 4 Any public or private agency, authority, corporation, board or commis- 5 sion which receives city funds and is not otherwise subject to the 6 requirements of section 6-10 of this chapter shall submit quarterly 7 reports of the expenditure of such funds to the mayor in such form and 8 detail as the mayor may prescribe. 9 § 6-15. Self-dealing among members of the governing boards of charita- 10 ble institutions. 11 (a) Any charitable institution which receives any payment from the 12 city of Staten Island charitable institutions budget shall pass and 13 implement by-laws which will: 14 1. require disclosure to the agency responsible for the administration 15 of charitable institutions budget and approval by such agency of the 16 material terms of any contract or transaction, direct or indirect, 17 between an institution and any member of its governing board, any part- 18 nership of which he or she is a member or any corporation in which he or 19 she holds ten per centum or more of the outstanding common stock; 20 2. preclude any member of the governing board of any institution from 21 sharing, participating or benefiting, directly or indirectly, in the 22 proceeds from any contract or transaction entered into between the 23 institution and any third party unless such participation or benefit has 24 been approved in advance by the agency and the governing board of the 25 institution has approved the transaction by a two-thirds majority 26 excluding the vote of member to be benefitted; 27 3. require each member of its governing board to submit to the agency 28 each year a disclosure statement including such member's name, home 29 address, principal occupation and business interests from which such 30 member or such member's spouse received income equal to or greater than 31 ten percent of their aggregate gross income during the previous year. 32 (b) At the discretion of the agency, any payment or any portion of any 33 payment may be withheld from any institution which has failed to pass 34 and implement such by-laws. 35 § 6-16. Definitions of capital projects and budget terms. 36 As used in this charter: 37 (a) The term "capital project" shall mean: 38 1. a project which provides for the construction, reconstruction, 39 acquisition or installation of a physical public betterment or improve- 40 ment which would be classified as a capital asset under generally 41 accepted accounting principles for municipalities or any preliminary 42 studies and surveys relative thereto or any underwriting or other costs 43 incurred in connection with the financing thereof; 44 2. the acquisition of property of a permanent nature including wharf 45 property; 46 3. the acquisition of any furnishings, machinery, apparatus or equip- 47 ment for any public betterment or improvement when such betterment or 48 improvement is first constructed or acquired; 49 4. any public betterment involving either a physical improvement or 50 the acquisition of real property for a physical improvement consisting 51 in, including or affecting: 52 (i) streets and parks; 53 (ii) bridges and tunnels; 54 (iii) receiving basins, inlets and sewers, including intercepting 55 sewers, plants or structures for the treatment, disposal or filtration

S. 8578 27 1 of sewage, including grit chambers, sewer tunnels and all necessary 2 accessories thereof; 3 (iv) the fencing of vacant lots and the filling of sunken lots; 4 (v) any other project allowed to be financed by the local finance law, 5 with the approval of the mayor and the comptroller; or 6 (vi) any combination of the above. 7 (b) The term "pending" shall mean not yet completed. 8 (c) The term "standards" for each category of capital projects to 9 which they apply shall include: maximum gross and net areas allowed; 10 types of programs which may be operated in the facility; performance 11 requirements for environmental systems; allowable materials and 12 finishes; maximum areas allowed for different functions and activities; 13 approximate cost limits per square foot of construction; and such other 14 items designated by the mayor or by resolution of the council. 15 (d) The term "scope of project" or "proposed scope of project" shall 16 mean a description of a capital project included in the capital budget 17 that contains specific guidelines for the design and implementation of 18 such project consistent with the standards for the appropriate category 19 of capital projects and includes each of the following items of informa- 20 tion which are relevant to the capital project involved: 21 1. purposes and public to be served; 22 2. programs to be conducted in the facility; 23 3. gross and net amounts of space and bulk for any building or struc- 24 ture and for areas for different functions and activities; 25 4. identification of required architectural, engineering or other 26 consultants and estimated fees for such consultants; 27 5. estimated completion dates for scope, design and construction; 28 6. total estimated project costs, including costs for site acquisi- 29 tion, preparation and tenant relocation, design, construction and equip- 30 ment; 31 7. estimated expenditures for the project for each fiscal year until 32 its completion; 33 8. estimated annual costs to operate programs within the facility when 34 fully staffed and to maintain the facility; and 35 9. such other information as shall be required by the mayor or by 36 resolution of the council. 37 (e) The term "cost" shall include the contract liabilities and expend- 38 iture incurred for work in carrying out the physical improvement and 39 interest thereon, and the compensation to be made to the owner of any 40 real property acquired for the improvement as determined by a court or 41 by agreement, and interest thereon. 42 (f) The term "expenses" shall mean any expenses incurred in relation 43 to an assessable improvement exclusive of cost and of damages assessed 44 by the board of assessors. 45 (g) The term "street," as used in this chapter, shall include street, 46 avenue, road, alley, lane, highway, boulevard, concourse, parkway, 47 driveway, culvert, sidewalk, crosswalk, boardwalk, and viaduct, and 48 every class of public road, square and place, except marginal streets. 49 (h) The term "real property" shall include all lands and improvements, 50 lands under water, waterfront property, the water of any lake, pond or 51 stream, all easements and hereditament, corporeal or incorporeal, and 52 every estate, interest and right, legal or equitable, in lands or water, 53 and right, interest, privilege, easement and franchise relating to the 54 same, including terms for years and liens by way of judgment, mortgage 55 or otherwise.

S. 8578 28 1 (i) The terms "maintenance" or "maintain" shall denote those activ- 2 ities necessary to keep the relevant portion of the capital plant in 3 good repair so as to preserve its structural integrity and to prevent 4 its deterioration. 5 (j) The term "major portion of the capital plant" shall mean: 6 1. any capital asset 7 (i) which is a capital facility or system comprising a component of 8 the public domain or infrastructure general fixed assets of the city or 9 a building comprising a component of the general fixed assets of the 10 city; and 11 (ii) which, as of the effective date of this charter, or, as a result 12 of any reconstruction or expansion after such date, has a replacement 13 cost of at least ten million dollars and a useful life of at least ten 14 years, or if purchased or constructed after such date has an original 15 cost of at least ten million dollars and an original useful life of at 16 least ten years; and 17 2. any other capital asset of the city designated by the mayor for the 18 purposes of this section; provided, however, that it shall not include 19 any asset which is leased to or otherwise under the cognizance and 20 control of a public benefit corporation or which is otherwise covered, 21 pursuant to state law, by requirements which are substantially similar 22 to the requirements of this section. 23 § 6-17. Format of departmental estimates for capital projects, prelim- 24 inary capital budget and executive capital budget. 25 The departmental estimates for capital projects and the executive 26 capital budget shall consist of a detailed estimate of all capital 27 projects pending or which the agency head, for departmental estimates, 28 or the mayor, for the executive budget, believes should be undertaken 29 within the ensuing fiscal year and the three succeeding fiscal years. 30 Each agency head, and the mayor, for the executive budgets, shall submit 31 a written response to each of the capital budget priorities included in 32 the council's recommendation of budget priorities for local and neigh- 33 borhood needs submitted in accordance with the section on preliminary 34 budget hearings of this chapter. Such responses shall include the 35 response of the agency head and the mayor, as appropriate, regarding the 36 disposition of each such priority and meaningful explanations of any 37 disapprovals contained in such estimates or budget. 38 § 6-18. Preliminary capital budget. 39 The preliminary capital budget statements shall consist of: 40 (a) a financial plan covering estimates of capital expenditures for 41 the four ensuing fiscal years; 42 (b) departmental estimates for capital projects as provided in section 43 6-19 of this chapter together with the cash flow requirements and 44 proposed sources of funding for each project included in such estimates; 45 (c) a capital program status report which sets forth the appropri- 46 ations for each project included in the capital budget for the current 47 fiscal year together with the expenditures to date; and 48 (d) a summary description of the purpose of each capital project and 49 the needs it will fulfill, the schedule for beginning and constructing 50 the project, its period of probable usefulness and an appropriate main- 51 tenance schedule. 52 § 6-19. Executive capital budget. 53 (a) The executive capital budget shall set forth separately each capi- 54 tal project, and shall include: 55 1. a brief description and the location of each project; the total 56 estimated cost of the project; the appropriations which have been previ-

S. 8578 29 1 ously adopted for this project; the amount of appropriations recommended 2 to be adopted for the ensuing fiscal year the aggregate amount of which 3 shall not exceed the amount in the mayor's certificate; the amount of 4 appropriations required thereafter to complete the project; the sources 5 of funds for the project including state, federal, private and other 6 funds; the period of probable usefulness; the estimated additional annu- 7 al maintenance and operation costs; and any terms and conditions of the 8 project; the estimated dates of completion of final scope, final design 9 and final construction; and 10 2. a listing of all pending projects; and any recommendations that any 11 pending projects be modified, rescinded or postponed accompanied by a 12 statement of the budgetary impact of any such action. 13 (b) The executive capital program shall set forth for both program 14 categories and individual projects: 15 1. a statement for each of the three succeeding fiscal years of the 16 total dollar amounts necessary to complete projects initiated in prior 17 years and projects proposed in the executive budget the amounts neces- 18 sary for projects proposed to be initiated in future years and the 19 amounts necessary for amendments and contingencies; and 20 2. a statement of the likely impact on the expense budget of staffing, 21 maintaining and operating the capital projects included in or contem- 22 plated by the capital program. 23 § 6-20. Amendment. 24 (a) Upon receipt of a recommendation in writing from the mayor in 25 manner specified herein, the council may amend the capital budget or 26 capital program in the same manner as the adoption of the capital budget 27 and capital program including the right to approve the proposed amend- 28 ment as submitted or to increase or decrease the amounts of funds 29 proposed to be appropriated thereby, but only if funds are available 30 within the capital budget and the applicable program category of the 31 capital program, provided, however that the mayor may only recommend 32 such an amendment relating to an appropriation included in the capital 33 budget pursuant to this charter. 34 (b) Upon the adoption of any such amendment by the council, it shall 35 be certified by the mayor, the speaker of the council and the city clerk 36 and the capital budget shall be amended accordingly. 37 (c) Not later than five days after such certification such amendment 38 shall be filed in the office of the comptroller and shall be published 39 forthwith. 40 § 6-21. Restrictions on capital projects. 41 (a) No obligations of the city shall be issued or authorized for or on 42 account of any capital project not included in a capital budget, or for 43 which funds have not been reserved in an appropriate program category of 44 the capital program for any year of such program in which it is project- 45 ed that funds will be expended for the completion of the project, or in 46 excess of the maximum amount of obligations which may be issued on 47 account of such project as fixed in such capital budget; and no amount 48 may be expended on account of any capital project in excess of the 49 amount appropriated for such purposes in a capital budget, except that 50 the amount appropriated for such purposes may be increased by the mayor 51 by not more than fifteen per centum thereof in order to meet any costs 52 required to advance such project. Notice of any such increase shall be 53 provided to the council together with a statement of identifiable funds 54 available for payment of the increase. 55 (b) Funds included in the capital budget for a capital project that 56 are not obligated or committed during the fiscal year in which appropri-

S. 8578 30 1 ated shall not be obligated or committed in the subsequent fiscal year 2 unless reappropriated in a subsequent capital budget or an amendment 3 thereto. A capital project included in a capital budget that is not 4 initiated by the expenditure of funds within two years after its inclu- 5 sion in the budget shall be eliminated from the budget. 6 (c) The city may issue capital debt only to finance capital projects 7 as defined in this charter. The capital budget may not include expense 8 items that are properly includable only in the expense budget, as deter- 9 mined in accordance with the accounting principles set forth in the 10 state comptroller's uniform system of accounts for municipalities, as 11 the same may be modified by the state comptroller, in consultation with 12 the city comptroller, for application to the city. 13 (d) No capital project shall be included in the proposed executive 14 capital budget or otherwise adopted as part of the capital budget or as 15 an amendment thereto unless sufficient funds are available within the 16 appropriate general program category of the capital program for any year 17 of such program in which it is projected that additional appropriations 18 will be necessary for the completion of the project. 19 § 6-22. Site selection. 20 (a) The selection of sites for capital projects shall be pursuant to 21 local law. 22 (b) To the maximum extent feasible, final approval of a site for a 23 capital project shall occur prior to or simultaneously with the approval 24 of the scope of the project pursuant to this chapter. 25 § 6-23. Project initiation; commitment plan. 26 (a) The inclusion of a capital project in the capital budget as 27 adopted or amended shall constitute a direction and order to the agency 28 to proceed with the preparation of a scope of project pursuant to this 29 chapter unless sufficient planning funds for such purpose have not been 30 appropriated in the capital budget. The head of the agency shall notify 31 the comptroller of the amount of appropriated planning funds to be 32 encumbered for such purpose. 33 (b) The approval of a scope of project for a capital project pursuant 34 to this chapter, including the amount of obligations necessary to 35 finance the design and construction of the project, shall constitute a 36 direction and order to the agency to design the project, unless suffi- 37 cient funds for such purpose have not been appropriated in the capital 38 budget or are otherwise not available within the appropriate program 39 category of the capital program. Such approval shall constitute notifi- 40 cation to the comptroller of the comptroller's authorization to expend 41 appropriated design funds. 42 (c) The approval of the final design for a capital project pursuant to 43 this chapter shall constitute a direction and order to the agency 44 responsible for construction to prepare bid and award documents and to 45 proceed to bid, unless sufficient funds for such purpose have not been 46 appropriated in the capital budget or are otherwise not available within 47 each year of the capital program in which it is projected that funds 48 will be expended for the completion of the project. Such approval shall 49 constitute notification to the comptroller of the comptroller's authori- 50 zation to expend appropriated construction funds. 51 (d) The mayor shall require each agency to prepare and submit periodic 52 reports, in regard to the progress of its capital projects, including 53 schedules and clear explanations of any delays for particular projects 54 and summary information on each agency's record on such matters. Such 55 reports shall be published at least three times each year: within ninety 56 days of the adoption of the capital budget; with the preliminary capital

S. 8578 31 1 budget; and with the executive capital budget, copies of such reports 2 shall be transmitted by the mayor to the council. Such reports shall 3 include, for each project, the dates set in the adopted capital budget 4 for the completion of scope, design, and construction and any changes in 5 such dates. 6 1. The report issued with the executive budget shall include, for each 7 new capital project being proposed in the executive budget, a 8 description of the project including, to the extent practicable, the 9 information required to be included in a scope of project. 10 2. The report issued following the adoption of the budget shall 11 include, for each capital project added to the budget, a description of 12 the project including, to the extent practicable, the information 13 required to be included in a scope of project. 14 3. The report issued following the adoption of the budget shall 15 include, for each capital project for which a substantial change was 16 made, a revised description of the project including, to the extent 17 practicable, the information required to be included in a scope of 18 project. 19 (e) Any capital project which results in the acquisition or 20 construction of a capital asset which will be subject to the require- 21 ments of this charter shall contain a provision requiring a comprehen- 22 sive manual setting forth the useful life of the asset and explaining 23 the activities necessary to maintain the asset throughout such useful 24 life. 25 (f) The mayor may issue directives and adopt rules and regulations in 26 regard to the execution of capital projects, consistent with the 27 requirements of subdivisions (a), (b), (c) and (d) of this section, 28 which shall be binding upon all agencies. 29 § 6-24. Improvements payable other than by city. 30 Any owner of real property or any other person interested may apply to 31 the council to authorize an improvement referred to in paragraph one of 32 subdivision (a) of section 6-16 of this chapter, not included in the 33 capital budget. The council may authorize such improvement to be made by 34 the city or by such owner or other person interested upon compliance 35 with the following conditions: 36 (a) such owner or group or other persons interested shall enter into 37 an agreement with the city, whereby they will either authorize the city, 38 or themselves agree, to perform such work in accordance with such plans 39 and specifications approved by the agencies having jurisdiction there- 40 over and under their supervision; 41 (b) all of such work shall be done for the account of or at the sole 42 cost and expense of the person or persons applying for permission to do 43 the same, who shall furnish to the city such security and in such amount 44 as may be required to secure the payment of such cost and expense or the 45 proper performance of the said work in the time and in the manner agreed 46 upon, and shall further secure the city, in the latter case, against 47 latent defects in such work for a period of two years; 48 (c) such improvement shall be approved by the city planning department 49 and reviewed pursuant to local law and charter provisions; and 50 (d) any agreement providing for the performance of such work and the 51 furnishing of such security, shall be first approved by the council 52 before the same shall become effective. 53 § 6-25. Standards for capital projects. 54 The mayor shall prepare general standards and cost limits for catego- 55 ries of capital projects and standards for the preparation of the scope 56 of project for capital projects of various types. Such standards and

S. 8578 32 1 limits shall be submitted by the mayor to the council for review. The 2 proposed standards shall become effective thirty days after they have 3 been filed with the council unless within that time the council modifies 4 or disapproves them or part of them, after conducting a public hearing. 5 Any modification by the council shall be subject to disapproval by the 6 mayor in accordance with provisions of this charter and any such disap- 7 proval shall be subject to override by the council in accordance with 8 this charter. 9 § 6-26. Scope of project. 10 (a) Each agency, with respect to a capital project under its jurisdic- 11 tion included in a capital budget, shall prepare a proposed scope of 12 project within appropriated planning funds. The proposed scope of 13 project, or, in the case of a delay, an explanation for such delay along 14 with a revised schedule, shall be submitted to the mayor and the coun- 15 cil, by the date specified in the adopted capital budget in which the 16 capital project is included. Such proposed scope shall identify all 17 substantial differences between the guidelines for the capital project 18 as contained in such scope and the description of the capital project 19 contained in the report issued pursuant to this charter at the time such 20 project was proposed in the executive budget or following the budget 21 adoption in which such project was added to the capital budget. 22 (b) Not later than sixty days after receipt of the proposed scope of 23 project from an agency pursuant to subdivision (a) of this section, the 24 mayor shall approve, modify, or disapprove the proposed scope of project 25 and notify the agency and the council. In the case of a scope approved 26 by the mayor with modifications, such notification shall include a copy 27 of the scope as approved. 28 (c) No scope of project shall be approved by the mayor unless: 29 1. it contains the information required by paragraph four of subdivi- 30 sion (d) of section 6-16 of this chapter and it conforms to the applica- 31 ble standards for the type of project adopted pursuant to this chapter, 32 and 33 2. funds are available within the appropriate program category of the 34 capital program that can be reserved for each fiscal year required to 35 complete the project. 36 § 6-27. Design of capital project. 37 (a) The proposed design and final design for a capital project shall 38 be made available for review by the council. The mayor or the mayor's 39 representative shall review the final design to determine its conform- 40 ance with the approved scope of project pursuant to this chapter. 41 (b) Works of art may be provided for each capital project which 42 involves the construction or the substantial reconstruction of a city- 43 owned public building or structure the intended use of which requires 44 that it be accessible to the public generally or to members of the 45 public participating in, requiring or receiving programs, services or 46 benefits provided thereat. For the purposes of this section a police 47 precinct house and a firehouse shall be deemed to be such buildings. 48 Chapter 7 49 Planning Department 50 § 7-01. Planning department. 51 There shall be a department of city planning consisting of a planning 52 director and such subordinate employees as are required to administer 53 the planning program described herein. 54 § 7-02. Planning director.

S. 8578 33 1 The mayor shall appoint and shall have the power to remove the plan- 2 ning director, who shall have had at least five years of appropriate 3 professional land use experience. The planning director shall be the 4 head of the planning department, and shall be responsible for the proper 5 conduct of the affairs of the department and for the execution of the 6 planning program prescribed in this charter and in local laws and rules 7 consistent herewith. 8 § 7-03. Powers, duties and functions. 9 (a) The planning director, through the planning department, shall: 10 1. advise and assist the mayor and the council in regard to the phys- 11 ical planning and public improvement aspects of the development of the 12 city and on all matters related to the planning program prescribed in 13 this charter and in local law and rules consistent herewith; 14 2. prepare the general plan and revisions thereof, and development 15 plans at least every four years in the year following the mayoral 16 election and annual reviews thereof, for the improvement and development 17 of the city; 18 3. establish procedures for processing revisions to the general plan 19 and to the four-year and one-year development plans; 20 4. hold public hearings on such plans and revisions thereof and trans- 21 mit them, with findings and recommendations thereon, through the mayor 22 to the council for its consideration and action; 23 5. prepare zoning resolutions, maps and rules and regulations and any 24 revision or amendments thereto in accordance with the general plan; 25 6. prepare local laws or resolutions and rules and regulations govern- 26 ing the subdivision of lands within the city and any revisions or amend- 27 ments thereto; 28 7. administer the zoning and subdivision local laws or resolutions and 29 rules and regulations adopted thereunder and any regulatory laws or 30 resolutions which may be adopted to supplement or replace such resol- 31 utions; 32 8. recommend periodic amendments to zoning resolutions and subdivision 33 laws or regulations, and provide opportunity for taxpayers to recommend 34 periodic amendments to zoning resolutions and subdivision laws or regu- 35 lations; 36 9. hold public hearings on land subdivision and zoning resolutions and 37 amendments thereto, transmit such proposed resolutions, with findings 38 and recommendations thereon, through the mayor to the council for its 39 consideration and action; 40 10. establish procedures for the review of land utilization applica- 41 tions; 42 11. review subdivision plats and zoning petitions; 43 12. approve applications for special permits and variances within the 44 jurisdiction of the department of city planning under the zoning resol- 45 ution; 46 13. collect data on population, housing and other relevant social and 47 economic indicators to serve as a basis for planning recommendations; 48 and may conduct continuous studies and policy analyses on economic 49 development, urban design, capital improvements, environmental impact 50 assessment and such other subjects as the mayor or council may from time 51 to time request; 52 14. be custodian of the city map and thereon record all changes legal- 53 ly authorized; 54 15. administer the program prescribed by law with respect to the 55 establishment and regulation of landmarks, portions of landmarks, land- 56 mark sites, interior landmarks, scenic landmarks and historic districts;

S. 8578 34 1 16. hold public hearings on a proposed designation of a landmark, 2 landmark site, interior landmark, scenic landmark or historic district, 3 after notice of the proposed designation, notice of the hearing, and an 4 opportunity for comment to the affected property owner or owners; 5 17. submit to the council a report on the impact of any such desig- 6 nation whether of a district or a landmark to the zoning resolution, 7 projected public improvements, and any plans for the development, 8 growth, improvement or renewal of the area involved, and a recommenda- 9 tion for council action with respect to any such designation; 10 18. review the executive capital program and budget for conformance to 11 the purposes of the general plan and development plans prior to 12 submission of the executive capital program and budget to the council 13 and make a written report of his or her findings to the mayor and coun- 14 cil at the time of submission of such executive capital program and 15 budget; 16 19. prepare, in consultation with the director of the budget, the 17 draft ten-year capital strategy, and hold hearings on such draft, and 18 report his or her findings to the mayor and to the council; 19 20. consult with the appropriate State officials concerned with plan- 20 ning and environmental quality to assure compliance with State guide- 21 lines and oversee implementation of laws that require environmental 22 reviews of actions taken by the city; and 23 21. perform such other functions as are assigned by the mayor or other 24 provisions of law. 25 § 7-04. General plan. 26 The general plan shall set forth the city's broad policies for the 27 long range development of the city. It shall contain statements of the 28 general social, economic, environmental and design objectives to be 29 achieved for the general welfare and prosperity of the people of the 30 city through government action, city, state or federal. The statements 31 shall include, but not be limited to, policy and development objectives 32 to be achieved with respect to the distribution of social benefits, the 33 most desirable uses of land within the city, the overall circulation 34 pattern and the most desirable population densities within the several 35 areas of the city. In conformance with such development objectives and 36 policies the plan shall identify the general location, character, and 37 extent of streets and thoroughfares, parks, recreation facilities, sites 38 for public buildings and structures, city and privately owned utilities, 39 transportation systems and facilities, housing, community facilities, 40 future land use for all classifications and such other elements, 41 features and policies as will provide for the improvement of the city 42 over the next ten years. 43 § 7-05. Development plans. 44 Development plans shall present detailed means for implementing and 45 accomplishing the development objectives and policies of the general 46 plan within the several parts of the city. The mayor shall have a 47 comprehensive four-year development plan which shall recommend a gener- 48 alized land use development pattern to guide the growth of the city over 49 the succeeding four-year period and a one-year development plan that 50 delineates the city's proposed land use development pattern for a 51 succeeding twelve month period and is based upon the development goals 52 and objectives specified in the city's four-year development plan. 53 § 7-06. Adoption of the general plan and development plans. 54 (a) The mayor shall submit annually to the council such plans that 55 will include a general plan, four-year and one-year development plans 56 for all property within the city limits. The council shall adopt the

S. 8578 35 1 general plan or revisions thereof and development plans or amendments 2 thereto by local law. Any local law or resolution adopting or revising 3 the general plan shall be laid over for at least two weeks after intro- 4 duction. The mayor shall not certify as to the necessity for the immedi- 5 ate consideration of any general plan, development plans, or revisions 6 or amendments thereto. Public notice shall be provided at least ten days 7 before adoption by the council. Upon adoption, every local law or 8 resolution shall be presented to the mayor, and the mayor may approve or 9 disapprove it pursuant to applicable provisions governing the approval 10 or disapproval of a local law or resolution. If the mayor approves the 11 local law, the mayor shall sign it and return it to the clerk; it shall 12 then be deemed to have been adopted. If the mayor disapproves it, he or 13 she shall return it to the council with his or her objections stated in 14 writing. The council at its next regular meeting may reconsider the same 15 and if the votes of two-thirds of all the council members be cast in 16 favor of repassing such local law, it shall be deemed adopted, notwith- 17 standing the objections of the mayor. 18 (b) The general plan and all development plans shall be kept on file 19 in the department of city planning. 20 (c) The approved general plan and development plans shall be used as a 21 guide for the preparation of the city's capital improvement program and 22 capital budget. 23 (d) The mayor shall maintain an up-to-date zoning map of all proper- 24 ties within the city limits. 25 (e) Following the annual updating and adoption of the city's develop- 26 ment plans, the council shall amend the city's zoning ordinance to 27 conform it to the updated development plans in accordance with proce- 28 dures prescribed by general law. 29 § 7-07. Board of Appeals. 30 (a) There shall be a board of appeals which shall consist of five 31 members to be termed commissioners, three of whom shall be appointed by 32 the mayor and two appointed by the council. Members shall serve a stag- 33 gered term of five years. 34 (b) Commissioners shall be chosen for their independence, integrity 35 and civic commitment and for their professional competence in such areas 36 as planning, architecture, and engineering. The mayor shall designate 37 one of the members to serve as chair and one of the members to serve as 38 vice-chair who shall act as chair in the absence of the chair or in the 39 event that a vacancy exists in the office of chair. 40 (c) Every member of the board shall receive a salary, which shall not 41 be reduced during his or her term of office except in case of a general 42 reduction of salaries and in proportion to reductions of salaries of 43 other officers with similar salaries. A member shall not engage in any 44 other occupation, profession or employment. Members shall attend the 45 hearings and executive sessions of the board, and shall perform such 46 other duties as may be required by the chair. 47 (d) Vacancies shall be filled in the same manner as for an original 48 appointment for the unexpired term of the member whose place has become 49 vacant and with a person having his or her qualifications. 50 (e) Any member may be removed by the mayor on proof of official 51 misconduct, or of negligence in official duties, inability to perform 52 his or her duties; but before removal he or she shall receive a copy of 53 the charges and shall be entitled to a hearing before the mayor and to 54 the assistance of counsel at such hearing. 55 § 7-08. Meetings.

S. 8578 36 1 Meetings of the board shall be held at the call of the chair and at 2 such other times as the board may determine. The chair, or in his or her 3 absence the acting chair, may administer oaths and compel the attendance 4 of witnesses. All hearings before the board shall be open to the public 5 and shall be before at least three members of the board, and a concur- 6 ring vote of at least three members shall be necessary to a decision to 7 grant an application or an appeal, to revoke or modify a variance, 8 special permit or other decision of the board, or to make, amend or 9 repeal a rule or regulation. The board shall keep minutes of its 10 proceedings, showing the vote of each member upon every question, or if 11 absent or failing to vote, indicating such fact, and shall also keep 12 records of its examinations and other official action. Such minutes and 13 such records shall be public records. 14 § 7-09. Powers and duties. 15 The board shall have the power: 16 (a) to hear and determine appeals from the actions of the planning 17 director in the administration of the zoning and subdivision resolutions 18 and any rules and regulations adopted pursuant thereto, which appeal 19 shall be sustained only if the board finds that the director's action 20 was based on an erroneous finding of a material fact, or that the direc- 21 tor had acted in an arbitrary or capricious manner or had manifestly 22 abused discretion; 23 (b) to hear and determine appeals from the actions of the planning 24 director on petitions for varying the application of the zoning resol- 25 ution with respect to a specific parcel of land and may grant such a 26 variance upon the ground of unnecessary hardship if the record shows 27 that: 28 1. the applicant would be deprived of the reasonable use of such land 29 or building if it were used only for the purpose allowed in that zone; 30 2. the request of the applicant is due to unique circumstances and not 31 the general conditions in the neighborhood, so that the reasonableness 32 of the neighborhood zoning is not drawn into question; and 33 3. the use sought to be authorized by the variance will not alter the 34 essential character of the locality, provided however that the board 35 shall specify the particular evidence which supports the granting of a 36 variance; 37 (c) to hear and determine appeals from and review any recommendation 38 by the planning director to designate a landmark, landmark site, interi- 39 or landmark, scenic landmark or historic district; 40 (d) to make, amend and repeal rules and regulations for carrying into 41 effect the provisions of the laws, resolutions, rules and regulations in 42 respect to any subject-matter jurisdiction whereof is conferred by law 43 upon the board, and to include in such rules and regulations provisions 44 applying to specific conditions and prescribing means and methods of 45 practice to effectuate such provisions and for carrying into effect the 46 powers of the board; 47 (e) to review, upon motion of any member of the board, any rule, regu- 48 lation, amendment or repeal thereof, and any order, requirement, deci- 49 sion or determination from which an appeal may be taken to the board 50 under the provisions of this chapter or of any law, or of any rule, 51 regulation or decision of the board; but no such review shall prejudice 52 the rights of any person who has in good faith acted thereon before it 53 is reversed or modified; and 54 (f) to revoke or modify, upon due notice and hearing, variances and 55 special permits previously granted under the zoning resolution if the 56 terms and conditions of such grants have been violated.

S. 8578 37 1 § 7-10. Procedure on appeals. 2 (a) An appeal may be taken by an aggrieved party. 3 (b) Such appeal may be taken within such time as shall be prescribed 4 by the board by general rule, by filing with the officer from whom the 5 appeal is taken and with the board a notice of appeal, specifying the 6 grounds thereof. The officer from whom the appeal is taken shall forth- 7 with transmit to the board all the papers constituting the record upon 8 which the action appealed from was taken. 9 (c) The board shall fix a reasonable time for the hearing of appeals, 10 and give due notice thereof to the parties, and decide the same within a 11 reasonable time. If the appeal is from an order revoking a permit or 12 approval, the hearing shall be no later than at the third scheduled 13 hearing of the board following the date of filing of the appeal, or five 14 weeks following such date, whichever is sooner, and the decision of the 15 board shall be rendered expeditiously. Upon the hearing any party may 16 appear in person or by agent and/or attorney. 17 (d) Any decision of the board under this section may be reviewed as 18 provided by law. 19 Chapter 8 20 Franchises 21 § 8-01. Franchises. 22 All franchises, revocable consents and concessions shall be awarded in 23 accordance with the following procedures: 24 (a) The council shall have the power to grant, renew or extend any 25 franchise, revocable consent or concession which extends for a period of 26 three or more years, provided, however, that any franchise, revocable 27 consent or concession which extends for a period of ten years or more 28 shall require the approval of two-thirds of all the members; and 29 (b) The mayor shall have the power to enter into an agreement to 30 grant, renew or extend a franchise, revocable consent or concession 31 which extends for a period of less than thirty-six months. 32 Chapter 9 33 Contracting 34 § 9-01. Procurement. 35 Except as otherwise provided in this charter or by statute, all goods, 36 services or construction to be paid for out of the city treasury or out 37 of monies under the control of or assessed or collected by the city 38 shall be procured as prescribed in this chapter. 39 § 9-02. Conditions. 40 The circumstances under which procurement may be used for the 41 provision of technical, consultant or personal services, shall include 42 circumstances where the use of procurement is: 43 (a) cost effective or necessary to obtain special expertise; 44 (b) necessary to provide a service not needed on a long-term basis; 45 (c) necessary to avoid a conflict of interest; or 46 (d) where personnel or expertise is not available in city government. 47 § 9-03. Procedures. 48 All contracts shall be awarded in accordance with the following proce- 49 dures: 50 (a) The mayor as the chief elected executive shall through his or her 51 appointees have the power to enter into contracts on behalf of the city 52 of Staten Island. 53 (b) The comptroller shall, in accordance with provisions of this char- 54 ter and with practices promulgated by state law, certify all contracts,

S. 8578 38 1 within thirty days of receipt of such contract, provided there is no 2 cause not to certify. If the comptroller determines that a contract 3 cannot be certified, he or she shall so notify the mayor and the common 4 council within thirty days of receipt of such contract. Reasons not to 5 certify shall include but not be limited to debarment of 6 vendors/contractors, unreasonable and/or onerous terms and conditions, 7 financial problems or inconsistencies, and any other major cause not 8 advantageous to the city that the comptroller can identify and justify 9 through appropriate documentation. 10 (c) All contracts above ten thousand dollars, shall be let by compet- 11 itive bidding, in compliance with current rules, regulations, guidelines 12 and practices set forth by an appropriate national government procure- 13 ment officers professional association or the conventions set forth in 14 the generally accepted accounting practices or procedures as promulgated 15 by the New York State comptroller's office, as agreed to by the mayor, 16 the comptroller and approved by the common council; except that, when an 17 emergency as defined by local law is declared by the mayor to exist and 18 is certified by the comptroller, expedited rules as promulgated by the 19 mayor or the mayor's designee shall apply. 20 (d) Contracts of ten thousand dollars or less may be let by sole 21 source bid when an agency by rule determines that there is only one 22 source for the required good, service or construction. The agency 23 contract file shall contain a written determination that only one source 24 is available for the required good, service or construction, including 25 the process by which the agency made such determination. The agency 26 shall provide to the comptroller written documentation to support its 27 intention to let a sole source contract. This documentation shall 28 include, but not be limited to, the qualifications of the vendor and the 29 specific requirements of the contract. 30 (e) If, for any contract above ten thousand dollars, there is an 31 alteration, renewal, or change in the terms and conditions or the scope 32 of work which results in an increase or decrease of greater than five 33 per centum of the original contract amount, then those contract changes 34 must be certified by the comptroller. 35 § 9-04. Notification of contract opportunities and awards. 36 Each agency shall publish in the appropriate publication and in news- 37 papers of city, state or national distribution and trade publications, 38 notice of: 39 (a) the solicitation of bids or proposals pursuant to this chapter 40 where the value of a contract for goods, services or construction is 41 estimated to be above ten thousand dollars; 42 (b) the award of a contract for goods, services or construction 43 exceeding ten thousand dollars in value. Each such notice of award shall 44 indicate the name of the contractor, the dollar value of the contract, 45 the procurement method by which the contract was let; 46 (c) the comptroller shall promulgate rules providing for the publica- 47 tion and content of notices of contract actions required by this chap- 48 ter. Such rules shall include but not be limited to provisions regarding 49 the timing and frequency of notices, the required duration of solicita- 50 tion periods, and the form and content of notices. 51 § 9-05. Agency contract files. 52 Each agency shall maintain files containing all information pertaining 53 to the solicitation, award and management of each contract of the agen- 54 cy. The agency contract files shall contain copies of each determi- 55 nation, writing or filing required by this chapter pertaining to a 56 contract including the circumstances under which the procurement was let

S. 8578 39 1 in accordance with section 9-02 of this chapter, and copies of all costs 2 effectiveness analyses. Agency contract files shall be open to public 3 inspection with adequate protection for information which is confiden- 4 tial. 5 § 9-06. Centralized contract and contractor information. 6 The mayor shall ensure that copies of all city contracts and other 7 standard information regarding city contracts and contractors are 8 located in a central place which is accessible to the public. Such 9 information shall include: 10 (a) a copy of the contract; 11 (b) information regarding the method by which the contract was let; 12 (c) such standard documents as the contractor is required to submit, 13 which shall be updated regularly; 14 (d) information regarding the contractor's qualifications and perform- 15 ance; 16 (e) any evaluations of the contractor and any contractor responses to 17 such evaluation; 18 (f) any audits of the contract and any contractor responses to such 19 audits; 20 (g) any decisions regarding the suspension or debarment of the 21 contractor; and 22 (h) any analysis and determination of cost effectiveness. 23 The mayor shall ensure adequate public access to the information on 24 contracts and contractors which shall be maintained in a manner to 25 facilitate public review, with due consideration for the need to 26 protect, where appropriate, the confidentiality of any such information. 27 § 9-07. Adverse impact on public employees. 28 In the event that a proposed contract for goods, services or 29 construction may adversely affect public employees, the public employees 30 union, if any, shall be advised no later than three months in advance of 31 the contract being let of the nature, scope, and approximate dates, of 32 the contract, and the reasons therefor. Except that, when an emergency 33 as defined in subdivision (c) of section 9-03 of this chapter is in 34 effect, some or all of the provisions of this section may be omitted or 35 suspended for the period of the emergency, but only for those contracts 36 directly relevant to the management of that emergency or as a result of 37 the emergency. 38 The public employer will provide such union as soon as practicable, 39 with information, in sufficient detail, so that the union may prepare a 40 proposal designed to demonstrate the cost effectiveness of keeping the 41 work in-house. Such information shall include, but not be limited to, 42 applicable solicitation to vendors, winning bids, descriptions of 43 services to be provided by vendors, and the agency's estimated direct 44 operating and administrative costs of contracting out the work. 45 Not less than thirty days prior to the award of the contract, the 46 union shall have the opportunity to make a formal proposal to the public 47 employer demonstrating that it is cost effective or that it is in the 48 best interest of the public employer to continue to perform such work 49 in-house. The public employer shall consider such proposal before making 50 a final determination. 51 Chapter 10 52 Referendum and Amendment 53 § 10-01. Referendum on pending legislation.

S. 8578 40 1 (a) The people of the city of Staten Island reserve to themselves the 2 right to require the council to vote on proposed laws and amendments to 3 the local laws as hereinafter provided. 4 (b) The people shall have the power to require the council to vote on 5 proposed bills and resolutions by initiative petition. Each initiative 6 petition shall support a bill or resolution which has been introduced in 7 the council and shall be signed by five per centum of the total votes 8 cast on Staten Island at the previous general election. 9 (c) An initiative petition when signed by the requisite number of 10 voters shall be submitted to the Staten Island board of elections which 11 shall promptly determine whether the petition meets the requirements of 12 subdivision (b) of this section. If the Staten Island board of elections 13 determines those requirements are satisfied it shall certify to the 14 speaker of the council that the bill or resolution supported by the 15 petition is required to be considered in the council with the vote of 16 each member present recorded. 17 (d) No petition shall be certified to the council after May first in 18 any year. A petition which is not certified by the Staten Island board 19 of elections before May first shall be certified to the council on the 20 first day of the next legislative session. 21 (e) The council shall have sixty days from receipt of a certified 22 petition to vote on the bill or resolution which is the subject of the 23 petition. If the council fails to vote on such bill or resolution within 24 sixty days, such bill or resolution shall be deemed to have passed. 25 (f) City funds, facilities or employees may not be used to solicit 26 signatures on an initiative petition or to support or oppose the signing 27 of such a petition provided, however, that elected officials may solicit 28 such signatures or oppose the signing of such a petition. 29 (g) The council shall, by local law, prescribe the form and content 30 of, and the procedures for, initiative petitions consistent with this 31 section. The council may, by local law, provide for the reporting of the 32 identity of any person who expends money to affect any initiative peti- 33 tion and the amount of any money so expended. 34 § 10-02. Charter amendment. 35 (a) Amendments to this charter shall be adopted by referendum only, 36 except for those changes that are syntax and/or spelling changes which 37 may be effected, altered or amended by local law as adopted by the coun- 38 cil and the mayor as provided for in this charter. The council may 39 place an amendment on the ballot by a vote of two-thirds of all the 40 members. 41 (b) Referendum in order to amend the charter shall take place as a 42 ballot issue to be decided by affirmative vote of the majority of the 43 qualified electors of the city voting thereon, it shall take effect as 44 prescribed in such referendum. 45 (c) The referendum shall be placed on the ballot by petition of quali- 46 fied electors of not less than five per centum of the total vote cast in 47 the city of Staten Island at the last gubernatorial general election. 48 The petition shall be filed in the office of the clerk of the city of 49 Staten Island for the submission to the electors of the city at the next 50 general election therein held not less than sixty days after such 51 filing. The proposed amendment shall be set forth in full in such peti- 52 tion which may be made upon separate sheets and the signatures of each 53 shall be authenticated in the manner provided by the New York state 54 election law. If within ten days after the filing of such petition a 55 written objection thereto be filed with the office of the city clerk and 56 the board of elections, the Supreme Court or any justice thereof of the

S. 8578 41 1 appropriate judicial district shall determine any question arising ther- 2 eunder and make such order as justice may require as prescribed in the 3 state election law. 4 Chapter 11 5 Property of the City 6 § 11-01. Inalienable property. 7 The rights of the city in and to its water front, ferries, wharf prop- 8 erty, bridges, land under water, public landings, wharves, docks, 9 streets, avenues, highways, parks, waters, waterways and all other 10 public places are hereby declared to be inalienable; but upon closing or 11 discontinuance of any street, avenue, park or other public place, the 12 property may be sold or otherwise disposed of as may be provided by law, 13 and leases of land under water, wharf property, wharves, docks and piers 14 may be made as may be provided by law. 15 § 11-02. Authority to acquire real property. 16 (a) The city may acquire title in fee to real property or any interest 17 therein whenever required for any public or municipal use or purpose or 18 for the promotion of public utility, comfort, health, enjoyment or 19 adornment. Such title or interest shall be acquired according to law by 20 purchase, gift, devise, lease, condemnation or otherwise, and, subject 21 to the provisions of this charter or other law may sell, lease, mort- 22 gage, hold, manage, and control such property as may now or hereafter be 23 owned by it. 24 (b) The council by local law shall prescribe the procedures for all 25 acquisitions of real and personal property by the city, including proce- 26 dures for determining compensation and for appealing from such determi- 27 nation without prejudice to the appellant. In addition to all other 28 requirements of law, written notice of the application to have compen- 29 sation for real property ascertained in any proceeding brought by the 30 city to acquire title to real property shall be given to the owners of 31 all property affected by the proceeding to such application. Such notice 32 shall state the purpose for which the property is to be acquired and the 33 date when such application will be presented and shall be made public 34 not less than ten days prior to such proceeding. Any owner whose proper- 35 ty has been taken in any such proceeding which has not been used for the 36 purpose stated in the proceeding for acquisition shall have the right of 37 first refusal to repurchase such property from the city after the expi- 38 ration of a five-year period from the date of the entry of the final 39 decree in the proceeding for the price paid plus simple interest. 40 § 11-03. Disposal of property of the city. 41 No real property of the city may be sold, leased, exchanged or other- 42 wise disposed of except as specifically provided by law. 43 Chapter 12 44 Personnel Management 45 § 12-01. Declaration of intent. 46 (a) The personnel policies and practices of the city government in 47 furtherance of this charter, the state civil service law and rules and 48 other applicable law shall: 49 1. preserve and promote merit and fitness in city employment; 50 2. ensure that appointments and promotions in city service are made, 51 and that wages are set, without regard to political affiliation, and 52 without unlawful discrimination based on sex, race, color, religion, 53 religious observance, national origin, disability, age, marital status,

S. 8578 42 1 citizenship status or sexual orientation; and promote and support the 2 efficient and effective delivery of services to the public. 3 (b) Consistent with subdivision (a) of this section, the heads of city 4 agencies shall have such powers, duties and responsibilities for person- 5 nel management as they shall require to administer their agencies effec- 6 tively and to supervise, evaluate, motivate, discipline, provide incen- 7 tives for and improve the skills of employees of the city. 8 § 12-02. Department; personnel director. 9 There shall be a department of personnel, the head of which shall be 10 the personnel director. The personnel director shall have all the powers 11 and duties of a municipal civil service commission provided in the state 12 civil service law or in any other statute or local law other than such 13 powers and duties as are by this chapter assigned to the mayor, the city 14 civil service commission or the heads of city agencies. 15 § 12-03. City civil service commission. 16 (a) There shall be a city civil service commission, consisting of 17 three members, not more than two of whom shall be members of the same 18 political party. Members shall be appointed by the mayor, from a list of 19 nominations provided by the screening committee established pursuant to 20 subdivision (b) of this section, for overlapping terms of six years. Of 21 the members first appointed, one shall serve for two years and one for 22 four years and one for six years. The members shall be removable in the 23 manner provided for members of a municipal civil service commission in 24 the state civil service law. A vacancy in such commission shall be 25 filled in the same manner as regular appointments for the balance of the 26 unexpired term. The mayor shall designate a member as chair and vice 27 chair, respectively, for one-year terms. Within appropriations for such 28 purposes, the members of the commission shall be reimbursed on a per 29 diem basis for attendance at regularly scheduled meetings and hearings 30 of the commission. 31 (b) There shall be a screening committee which shall submit to the 32 mayor a list of nominees, which shall include persons with knowledge or 33 experience of the state civil service system, or personnel management, 34 or compensation practices, from which the mayor shall make appointments 35 to the city civil service commission. Such screening committee shall 36 consist of six members, of whom three shall be appointed by the mayor 37 and three shall be appointed by the municipal labor committee. The 38 screening committee shall submit the list of nominees upon the occur- 39 rence of any vacancy on the commission or at least three months prior to 40 the expiration of the term of any incumbent member. 41 (c) The commission shall appoint a counsel, who shall not be employed 42 or retained by any other city agency, and may appoint a secretary and 43 such other subordinates as may be necessary within the appropriation 44 therefor. 45 (d) The civil service commission shall have the power to hear and 46 determine appeals by any person aggrieved by any action or determination 47 of the personnel director made pursuant to section 12-04 of this chapter 48 and may order such relief as it deems appropriate or necessary in 49 accordance with this charter or the state civil service law. Any such 50 appeal shall be taken by application in writing to the commission within 51 thirty days after the action or determination appealed from. The commis- 52 sion shall also have the powers and responsibilities of a municipal 53 civil service commission under section seventy-six of the state civil 54 service law. In accordance with the requirements of this charter, the 55 commission shall promulgate rules of procedure, including rules estab-

S. 8578 43 1 lishing time schedules, for the hearings and determinations authorized 2 by this section. 3 (e) The commission shall have the power and duty to conduct reviews, 4 studies, or analyses of the administration of personnel in the city, 5 including the classification of titles by the personnel director. 6 (f) The commission shall prepare and transmit directly to the mayor 7 departmental estimates as required by this charter. The mayor shall 8 include such proposed appropriations for the commission as a separate 9 agency in the preliminary and executive budgets as are sufficient for 10 the commission to fulfill the obligations assigned to it by this charter 11 or other law. 12 § 12-04. Personnel director; powers and duties. 13 (a) The personnel director shall have the following powers and duties 14 in addition to the powers and duties of a municipal civil service 15 commission provided in the state civil service law, and those vested in 16 the personnel director as the head of the department, except where any 17 specific power or duty is assigned to the mayor, heads of city agencies 18 or the civil service commission pursuant to this chapter: 19 1. to recruit personnel; 20 2. to make studies in regard to the grading and classifying of posi- 21 tions in the civil service, establish criteria and guidelines for allo- 22 cating positions to an existing class of positions, and grade and estab- 23 lish classes of positions; 24 3. to schedule and conduct examinations for positions in the civil 25 service; 26 4. to establish, promulgate and certify eligible lists in the manner 27 provided in the state civil service law, and the rules of the personnel 28 director; 29 5. to determine the appropriateness of eligible lists for the filling 30 of vacancies in the manner provided in the state civil service law and 31 the rules of the personnel director; 32 6. to investigate applicants for positions in the civil service; to 33 review their qualifications, and to revoke or rescind any certification 34 or appointment by reason of the disqualification of the applicant or 35 appointee under the provisions of the state civil service law, and the 36 rules of the personnel director or any other law; 37 7. to review any appointment of persons as provisional employees with- 38 in sixty days after appointment to assure compliance with this charter, 39 the state civil service law, and any rule or regulation issued pursuant 40 to this charter or state civil service law; 41 8. to certify payrolls in accordance with the provisions of the state 42 civil service law and the rules of the personnel director; 43 9. to keep records regarding candidates for appointment to the civil 44 service and officers and employees in the civil service; 45 10. to develop and recommend to the mayor standard rules governing 46 working conditions, vacations and leaves of absence; and career, salary 47 and wage plans providing for the creation, abolition and modification of 48 positions and grades and fixing salaries of persons paid from the city 49 treasury, subject to the provisions of this charter, the state civil 50 service law, other applicable statutes and collective bargaining agree- 51 ments; 52 11. to administer the city-wide incentive, training and development, 53 and other such personnel programs of the city; 54 12. to establish and enforce uniform procedures and standards to be 55 utilized by city agencies in establishing measures, programs and plans 56 to ensure a fair and effective affirmative employment plan for equal

S. 8578 44 1 employment opportunity for minority group members and women who are 2 employed by, or who seek employment with, city agencies. Such procedures 3 shall include a time schedule for the development of such plans which 4 provides for the preparation by each agency of a draft plan, the review 5 of such draft plan by the department of personnel, the equal employment 6 practices commission, and such other agency as the mayor requires, and 7 the consideration by the agency of any comments received on such draft 8 plans prior to the adoption of a final plan as required by section 12-05 9 of this chapter; 10 13. to establish a uniform format to be utilized by all city agencies 11 in the preparation of the quarterly reports required by section 12-05 of 12 this chapter. Such format shall provide for the presentation of statis- 13 tical information regarding total employment, new hiring and promotions 14 in a manner which facilitates understanding of an agency's efforts to 15 provide fair and effective equal opportunity employment for minority 16 group members, women and members of other groups who are employed by, or 17 who seek employment with, city agencies; 18 14. to develop, in conjunction with other city agencies, a clearing- 19 house for information on employment and educational programs and 20 services for minority group members and women; and 21 15. to provide assistance to minority group members and women employed 22 by, or interested in being employed by, city agencies to ensure that 23 such minority group members and women benefit, to the maximum extent 24 possible, from city employment and educational assistance programs. 25 (b) The personnel director shall have the following powers and duties 26 with respect to the personnel management functions assigned to city 27 agencies pursuant to subdivisions (a), (b), (c), and (d) of section 28 12-05 of this chapter: 29 1. to aid in the development of effective and efficient personnel 30 programs and professional personnel staffs in the agencies of the city; 31 and to convene the personnel officers of the agencies from time to time 32 as a personnel council to consider personnel matters of inter-agency or 33 of city-wide concern; 34 2. to approve agency plans and programs pursuant to section 12-05 of 35 this chapter; 36 3. to establish and enforce standards, guidelines and criteria for the 37 personnel management functions assigned to the agencies and to audit 38 performance by the agencies of such personnel functions; 39 4. to reverse or rescind any agency personnel action or decision 40 pursuant to an assignment or delegation of authority in this chapter, 41 upon a finding of abuse after notification to the agency and an opportu- 42 nity to be heard; 43 5. to hear and determine appeals by any person aggrieved by any action 44 or determination of the head of an agency made pursuant to section 12-05 45 of this chapter, subject to review by the civil service commission as 46 provided in subdivision (e) of section 12-03 of this chapter; 47 6. to delegate to the head of an agency personnel management functions 48 assigned to the personnel director where such delegation is not other- 49 wise prohibited by the state civil service law, and pursuant to terms 50 and conditions prescribed by the director; 51 7. to administer personnel programs of a city-wide nature or common to 52 two or more departments where administration by separate agencies would 53 be impracticable and uneconomical; 54 8. to annually publish and submit to the mayor, council and the 55 commission on equal employment practices a report on the activities of 56 the department of personnel and city agencies to provide fair and effec-

S. 8578 45 1 tive affirmative employment practices to ensure equal employment oppor- 2 tunity for minority group members and women who are employed by, or who 3 seek employment with, city agencies. Such report shall include, but not 4 be limited to, an analysis of the city government workforce and appli- 5 cants for such employment by agency, title and classification; a 6 description of each agency's employment practices, policies and 7 programs; an analysis of the effectiveness of the city's efforts to 8 provide fair and effective affirmative employment practices to ensure 9 equal employment opportunity for minority group members and women who 10 are employed by, or who seek employment with, city agencies; and such 11 legislative, programmatic and budgetary recommendations for the develop- 12 ment, implementation or improvement of such activities as the personnel 13 director deems appropriate. 14 (c) The personnel director shall promulgate rules and regulations 15 relating to the personnel policies, programs and activities of city 16 government in furtherance of and consistent with the state civil service 17 law and this chapter. The personnel director shall transmit to the state 18 civil service commission each proposed rule which must be submitted to 19 such commission, including any which establishes or reclassifies titles 20 in the non-competitive or exempt class, within sixty days after the 21 public hearing has been held on such rule. 22 (d) The personnel director shall, at the time requested by the city 23 civil service commission or the equal employment practices commission, 24 provide each commission with all the information which such commission 25 deems necessary to fulfill the duties assigned to it by the charter. The 26 provisions of this subdivision shall not apply to any information which 27 is required by law to be kept confidential or which is protected by the 28 privileges for attorney-client communications, attorney work products, 29 or material prepared for litigation. 30 (e) The personnel director shall submit a quarterly report to the 31 mayor, the council, the civil service commission and the equal employ- 32 ment practices commission. Such report shall specify, by agency and by 33 title, including temporary titles: 34 1. the number of provisional employees at the end of the second month 35 of the quarter; 36 2. the length of time such provisional employees have served in their 37 positions; and 38 3. the actions taken by the city to reduce the number of such provi- 39 sional employees and the length of their service in such positions. Such 40 reports shall be submitted by the last day of March, June, September, 41 and December of each year. 42 § 12-05. Agency heads; powers and duties. 43 (a) Subject to the state civil service law and applicable provisions 44 of this charter, heads of city agencies shall have the following powers 45 and duties essential for the management of their agencies in addition to 46 powers and duties vested in them pursuant to this charter or other 47 applicable law: 48 1. to recruit personnel; 49 2. to participate with the personnel department in job analyses for 50 the classification of positions; 51 3. to allocate individual positions to existing civil service titles; 52 4. to allocate individual managerial or executive positions to manage- 53 rial assignment levels; 54 5. to assist the personnel department in the determination of minimum 55 qualifications for classes of positions and to review and evaluate qual- 56 ifications of candidates for positions in the civil service;

S. 8578 46 1 6. to assist the personnel director in the planning and preparation of 2 open competitive examinations; 3 7. to schedule and conduct tests other than written tests for 4 promotion to competitive class positions; 5 8. to determine whether to hold an open competitive or promotion exam- 6 ination to fill positions in the civil service subject to disapproval of 7 the personnel director within thirty days; 8 9. to plan and administer employee incentive and recognition programs; 9 10. to fill vacant positions within quarterly spending allotments and 10 personnel controls pursuant to this charter; 11 11. to administer and certify eligible lists for classes of positions 12 unique to the agency; 13 12. to make appointments to competitive positions from eligible lists 14 pursuant to subdivision one of section sixty-one of the state civil 15 service law, which authority shall not be abridged or modified by local 16 law or in any other manner; 17 13. to establish and administer performance evaluation programs to be 18 used during the probationary period and for promotions, assignments, 19 incentives and training; 20 14. to conduct training and development programs to improve the 21 skills, performance and career opportunities of employees; 22 15. to ensure and promote equal opportunity for all persons in 23 appointment, payment of wages, development and advancement; 24 16. to administer employee safety programs; 25 17. to maintain personnel records; 26 18. to perform such other personnel management functions as are deleg- 27 ated by the personnel director pursuant to this chapter or that are not 28 otherwise assigned by this chapter; 29 19. to establish measures and programs to ensure a fair and effective 30 affirmative employment plan to provide equal employment opportunity for 31 minority group members and women who are employed by, or who seek 32 employment with, the agency and, in accordance with the uniform proce- 33 dures and standards established by the department of personnel for this 34 purpose, to adopt and implement an annual plan to accomplish this objec- 35 tive. Copies of such plans shall be filed with the mayor, council, 36 department of personnel, equal employment practices commission, and city 37 civil service commission and shall be made available for reasonable 38 public inspection; and 39 20. to provide assistance to minority group members and women inter- 40 ested in being employed by city agencies to ensure that such minority 41 group members and women benefit, to the maximum extent possible, from 42 city employment and educational assistance programs. 43 (b) Within one year from the effective date of this charter, the head 44 of each agency shall prepare and submit to the mayor and the personnel 45 director a plan and schedule for the discharge of the powers and duties 46 assigned in this section. No such plan shall take effect until approved 47 by the mayor. 48 (c) The mayor may modify, suspend, or withdraw for cause any power or 49 duty assigned or delegated to the head of an agency pursuant to this 50 section. 51 (d) Notification prior to each action or decision of an agency pursu- 52 ant to this chapter which changes the status of an individual employee, 53 a position, or a class of positions shall be provided to the personnel 54 director. The head of each agency shall certify on each payroll that all 55 personnel actions and transactions of the agency conform with the

S. 8578 47 1 provisions of the state civil service law and this chapter, the rules of 2 the personnel director and other applicable law. 3 (e) Before any new position in the city service shall be created, the 4 agency head shall furnish the commissioner of finance with a certificate 5 stating the title of the class of positions to which the position is to 6 be allocated. If the position is to be allocated to a new class of posi- 7 tions, the agency head shall request of the personnel director, and the 8 personnel director shall furnish to the agency head and the commissioner 9 of finance, a certificate stating the appropriate civil service title 10 for the proposed position, the range of salary of comparable civil 11 service positions and a statement of the class specifications and line 12 of promotion into which such new position will be placed and any such 13 new position shall be created only with the title approved by the 14 personnel director. 15 (f) The heads of all agencies shall, except as otherwise provided by 16 law, have power to appoint and remove, subject to the provisions of the 17 state civil service law, all chiefs of bureaus and all other officers, 18 employees and subordinates in their respective administrations, depart- 19 ments or offices, without reference to the tenure of office of any 20 appointee and to assign them their duties. Nothing herein shall be 21 construed to preclude the mayor from entering into a collective bargain- 22 ing agreement which provides for a procedure governing the discipline of 23 employees, including their removal. 24 (g) The heads of city agencies or their designated representatives 25 shall fulfill the requirements for agency participation in matters 26 affecting the management of the agency in advance of collective bargain- 27 ing negotiations affecting employees. 28 (h) The head of each city agency shall ensure that such agency does 29 not discriminate against employees or applicants for employment pursuant 30 to federal, state and local law. 31 (i) The head of each city agency shall quarterly publish and submit to 32 the mayor, council, department of personnel, and the equal employment 33 practices commission a report on the agency's efforts during the previ- 34 ous quarter to implement the plan adopted pursuant to this section. 35 (j) The head of each city agency shall include in all employment 36 retention, recruitment, training and promotional program literature, 37 advertisements, solicitations and job applications, such language as may 38 be necessary to effectuate the purpose of this chapter. 39 (k) The head of each city agency shall require each employment agency, 40 or authorized representative of workers with which it has a collective 41 bargaining or other agreement or understanding and which is involved in 42 the performance of recruitment and retention with the agency to furnish 43 a written statement that such employment agency, labor union or repre- 44 sentative shall not discriminate against employees or applicants for 45 employment pursuant to federal, state or local law and that such union 46 or representative will cooperate in the implementation of the agency's 47 obligations pursuant to this chapter. 48 § 12-06. Management service. 49 (a) The personnel director, in consultation with the heads of agen- 50 cies, shall develop and submit to the mayor a city-wide plan and sched- 51 ule for the development of qualified and competent technical, profes- 52 sional, management, administrative, and, supervisory personnel in the 53 civil service to meet the managerial needs of city government. The 54 mayor shall approve, disapprove or modify the plan within one year after 55 the effective date of this charter.

S. 8578 48 1 (b) The city-wide plan shall establish a management service for city 2 agencies and shall provide for: 3 1. membership in the service of employees with significant policy, 4 administrative, supervisory, managerial or professional duties that 5 require the exercise of independent judgment in the scheduling and 6 assignment of work, program management or planning, evaluation of 7 performance or allocation of resources; 8 2. preference for appointment into management service shall be given 9 to qualified civil service employees pursuant to promotional examina- 10 tions administered in a manner consistent with the requirements of the 11 state civil service law; 12 3. assessments of capacity and potential to perform managerial duties 13 as part of competitive tests for entry into the service and assignments 14 within the service; 15 4. a single managerial class of positions for each occupational series 16 within the service with assignment levels within each such class; 17 5. a plan for achieving equitable pay scales for members of the 18 service consonant with their duties and responsibilities; 19 6. merit increases, incentive awards, and recognition programs for 20 members of the services; 21 7. performance evaluations for members of the service to be used for 22 assignments, incentive awards, probationary period review, and discipli- 23 nary action; 24 8. a probationary period not to exceed one year for members of the 25 service; 26 9. management intern programs; and 27 10. training and career development programs. 28 (c) The personnel director shall conduct city-wide programs and func- 29 tions related to the management service; assist agencies in the imple- 30 mentation of the management service plan; and review and evaluate agency 31 performance under the plan. 32 § 12-07. Appointments and promotions. 33 (a) All appointments, promotions and changes in status of persons in 34 the public service of the city shall be made in the manner prescribed by 35 the constitution of the state and in accordance with the provisions of 36 the state civil service law and other provisions of law not inconsistent 37 therewith nor with this charter. 38 (b) Whenever qualifications for the appointment of persons to public 39 office are prescribed by law, the appointing officer shall, upon making 40 such appointment, file with the civil service commission a certificate 41 that such appointment complies with such law. 42 § 12-08. Power of investigation. 43 The personnel director and the city civil service commission shall 44 have the power to make investigations concerning all matters touching 45 the enforcement and effect of the provisions of the state civil service 46 law insofar as it applies to the city and the rules and regulations 47 prescribed thereunder, or concerning the actions of any examiner or 48 subordinate of the department, or of any officer or employee of the city 49 or of any county within the city, in respect to the execution of the 50 state civil service law; and in the course of such investigations the 51 personnel director of the city civil service commission shall have the 52 power to administer oaths, to compel the attendance of witnesses, and to 53 examine such persons as deemed necessary. 54 § 12-09. No compensation to unauthorized employees. 55 No officer of the city whose duty is to sign or countersign warrants 56 shall draw, sign or issue, or authorize the drawing, signing or issuing

S. 8578 49 1 of any warrant on the commissioner of finance or other disbursing offi- 2 cer of the city for payment of salary to any person in its service whose 3 appointment or retention has not been in accordance with the state civil 4 service law and the valid rules in force thereunder. 5 § 12-10. Examination for licenses. 6 The personnel director shall, unless otherwise provided by law, have 7 power, upon request of any person charged with the duty of issuing 8 licenses or permits, to conduct, under rules and regulations to be 9 established by the personnel director, examinations and tests to deter- 10 mine the qualifications of persons applying for such licenses or 11 permits. The personnel director shall certify to the person having power 12 to issue the license or permit the result of any such examination or 13 test. 14 § 12-11. Officers or employees designated to serve in exempt civil 15 service positions. 16 (a) Notwithstanding any provision in this charter to the contrary, the 17 mayor or head of an agency may designate any officer or employee occupy- 18 ing a position in the competitive class of the civil service to serve in 19 a position in the exempt class, and in such case, the officer or employ- 20 ee so designated shall thereupon enter upon and exercise all the powers 21 and duties and receive the salary of such exempt position, and shall 22 retain all the rights, privileges and status of such officer or employ- 23 ee's position in the competitive class. 24 (b) The appointment of any person chosen to fill the position thus 25 left vacant shall be temporary and shall terminate upon the return of 26 such officer or employee to such position as provided in subdivision (e) 27 of this section. 28 (c) Such designation shall be in writing and shall be filed and remain 29 of record in the office of such agency, in the office of the personnel 30 director and in the office of the mayor and shall remain in force until 31 revoked by the mayor or head of such agency, as the case may be. 32 (d) Service in such position in the exempt class shall be credited as 33 service in the competitive class and the status of such officer or 34 employee in respect to pensions or otherwise shall not be adversely 35 affected by such designation. 36 (e) Upon the termination of the officer or employee's services in such 37 exempt position, except by dismissal for cause in the manner provided in 38 section seventy-five of the state civil service law, such officer or 39 employee shall immediately and without further application return to the 40 position in the competitive class with the status, rights, privileges 41 and salary enjoyed immediately prior to the designation to the position 42 in the exempt class as if service in the competitive position had been 43 continuous. 44 § 12-12. Residency exemption. 45 Any employee who was previously employed by the city of New York, and 46 who is appointed, reassigned or transferred to city employment, without 47 a break in service shall be exempt from any residency requirement in 48 connection with his or her employment or subsequent promotion, demotion, 49 reassignment, transfer or other personnel change. For the purpose of 50 this section, a break in service shall be defined as a period of more 51 than one year. 52 Chapter 13 53 Equal Employment Practices Commission 54 § 13-01. Equal employment practices commission. 55 (a) There shall be an equal employment practices commission which 56 shall review, evaluate and monitor the employment procedures, practices

S. 8578 50 1 and programs of any city agency and the department of personnel to main- 2 tain an effective affirmative employment program of equal employment 3 opportunity for minority group members and women who are employed by or 4 who seek employment with city agencies. 5 (b) The commission shall consist of three members who shall be compen- 6 sated on a per diem basis. The mayor, the council, and the comptroller 7 shall each appoint one member. The mayor shall appoint a member to serve 8 as the chair. 9 (c) Members shall be appointed for four-year terms. 10 (d) The commission may, within the appropriations available therefor, 11 appoint an executive director and such deputies, assistants, and other 12 employees as may be needed for the performance of the duties prescribed 13 herein. 14 (e) The commission may meet as necessary to implement the provisions 15 of this chapter provided that the commission shall meet at least once 16 every eight weeks. 17 § 13-02. Duties and powers of the equal employment practices commis- 18 sion. 19 (a) The commission: 20 1. shall monitor the employment policies, programs and practices of 21 each city agency; and 22 2. monitor the coordination and implementation of any city affirmative 23 employment program of equal employment opportunity for minority group 24 members and women who are employed by or who seek employment with city 25 agencies, including the activities of the department of personnel, and 26 the civil service commission, pursuant to chapter twelve of this char- 27 ter, and any other agency designated by the mayor to assist in the 28 implementation or coordination of such efforts, and all city agencies 29 required by section 12-05 of this charter to establish agency program. 30 (b) The commission may request and shall receive from any city agency 31 such information, other than information which is required by law to be 32 kept confidential or which is privileged as attorney client communi- 33 cations, attorney work products or material prepared for litigation, and 34 such assistance as may be necessary to carry out the provisions of this 35 chapter. 36 (c) The commission shall communicate to any appropriate authority any 37 information regarding suspected or alleged violations of this chapter. 38 (d) The commission shall have the following powers and duties: 39 1. to review the uniform standards, procedures, and programs of the 40 department of personnel pursuant to section 12-04 of this charter, and 41 to review the plans adopted by city agencies in accordance with the 42 provisions of section 12-05 of this charter, and to provide any such 43 agency or the department of personnel with such comments and suggestions 44 as the commission deems necessary and appropriate; 45 2. to recommend to the department of personnel, all city agencies, or 46 any one or more particular agencies, procedures, approaches, measures, 47 standards and programs to be utilized by such agencies in their efforts 48 to ensure a fair and effective affirmative employment program of equal 49 employment opportunity for minority group members and women who are 50 employed by or seek employment with city agencies; 51 3. to recommend to any city agency actions which such agency should 52 consider including in its next annual plan as required by section 12-05 53 of this charter; 54 4. to advise and, if requested, assist city agencies in their efforts 55 to increase employment of minority group members and women who are 56 employed by or who seek employment with city agencies;

S. 8578 51 1 5. to audit and evaluate the employment practices and procedures of 2 each city agency and their efforts to ensure fair and effective equal 3 employment opportunity for minority group members and women at least 4 once every four years and whenever requested by the civil service 5 commission or the human rights commission or whenever otherwise deemed 6 necessary by this commission; 7 6. to make such policy, legislative and budgetary recommendations to 8 the mayor, council, the department of personnel or any city agency as 9 the commission deems necessary to ensure equal employment opportunity 10 for minority group members and women; 11 7. to publish by the fifteenth of February of each year a report to 12 the mayor and the council on the activities of the commission and the 13 effectiveness of each city agency's affirmative employment efforts and 14 the efforts by the department of personnel to ensure equal employment 15 opportunity for minority group members and women who are employed by or 16 seek to be employed by city agencies; 17 8. to establish appropriate advisory committees; 18 9. to serve with such other agencies or officials as shall be desig- 19 nated by the mayor as the city liaison to federal, state and local agen- 20 cies responsible for compliance with equal employment opportunity for 21 minority group members and women who are employed by or who seek to be 22 employed by city agencies; and 23 10. to take such other actions as are appropriate to effectuate the 24 provisions and purposes of this chapter. 25 § 13-03. Compliance procedures. 26 (a) The commission shall conduct such study or investigations and hold 27 such hearings as may be necessary to determine whether agencies are in 28 compliance with the equal employment opportunity requirements of this 29 chapter and chapter twelve of this charter. 30 (b) For the purpose of ascertaining facts in connection with any study 31 or investigation authorized by this chapter, the commission shall have 32 power to compel the attendance of witnesses, to administer oaths and to 33 examine such persons as they may deem necessary. The commission or any 34 agent or employee thereof duly designated in writing by them for such 35 purposes may administer oaths or affirmations, examine witnesses in 36 public or private hearing, receive evidence and preside at or conduct 37 any such study or investigation. 38 (c) If the commission makes a preliminary determination pursuant to 39 section 13-02 of this chapter, that any plan, program, procedure, 40 approach, measures or standard adopted or utilized by any city agency or 41 the department of personnel does not provide equal employment opportu- 42 nity; and/or if the commission makes a preliminary determination pursu- 43 ant to this chapter and chapter twelve of this charter, that an agency 44 has not provided equal employment opportunity the commission shall noti- 45 fy the agency in writing of this determination and provide an opportu- 46 nity for the agency to respond. If the commission, after consideration 47 of any such response and after consulting with the agency, concludes 48 that the corrective actions, if any, taken or planned by the agency are 49 not sufficient to correct the non-compliance identified in the prelimi- 50 nary determination, it should make a final determination in writing, 51 including such recommended corrective action as the commission may deem 52 appropriate. The agency shall within thirty days thereafter respond to 53 the commission on any corrective action it intends to make and shall 54 make monthly reports to such commission on the progress of such correc- 55 tive action. If the commission, after a period not to exceed six months, 56 determines that the agency has not taken appropriate and effective

S. 8578 52 1 corrective action, the commission shall notify the agency in writing of 2 this determination and the commission may thereafter publish a report 3 and recommend to the mayor whatever appropriate corrective action the 4 commission deems necessary to ensure compliance with equal employment 5 opportunity pursuant to the requirements of this chapter and chapter 6 twelve of this charter. Within thirty days of such determination the 7 agency shall submit a written response to the commission and the mayor. 8 The mayor after reviewing the commission's findings and the agency's 9 response, if any, shall order and publish such action as he or she deems 10 appropriate. 11 Chapter 14 12 Collective Bargaining 13 § 14-01. Office of collective bargaining; director. 14 There shall be an office of collective bargaining, the head of which 15 shall be the director of such office, who shall be the person holding 16 the office of chairman of the board of collective bargaining. The 17 director may appoint, and at pleasure remove, two deputies. 18 § 14-02. Board of collective bargaining. 19 There shall be in the office of collective bargaining a board of 20 collective bargaining, which shall consist of five members. Two members 21 of the board shall be city members, two members of the board shall be 22 labor members, and one impartial member who shall be the chair. The 23 mayor shall have the power to appoint the city members of the board to 24 serve at the mayor's pleasure, and the labor members of the board from 25 designations by the municipal labor committee. Each labor and city 26 member shall have an alternate, who shall be appointed and removed in 27 the same manner as the member for whom he or she is the alternate. The 28 chair shall be elected by the unanimous vote of the city and labor 29 members, and shall serve for three year terms. 30 Notwithstanding any other provision of law, a labor member may not be 31 removed from the board except upon request of the municipal labor 32 committee, or except for cause, as hereinafter provided. Any member may 33 be removed for cause by a majority of the entire board, including at 34 least one city member and one labor member, after having been given a 35 copy of the charges against him and an opportunity to be heard in person 36 or by counsel in his or her defense upon not less than ten days notice. 37 Vacancies in the office of a city member or a labor member shall be 38 filled in the same manner as herein provided for appointment. Vacancies 39 in the office of an impartial member occurring otherwise than by expira- 40 tion of term shall be filled by unanimous vote of the city and labor 41 members for the unexpired balance of the term. 42 § 14-03. Bureau of certification. 43 There shall be in the office of collective bargaining a bureau of 44 certification, which shall be administered by the impartial member of 45 the board of collective bargaining. 46 § 14-04. Powers and duties. 47 The office of collective bargaining, the board of collective bargain- 48 ing and the bureau of certification shall have such powers and duties 49 with respect to labor relations and collective bargaining as shall be 50 prescribed by law and which shall be substantially equivalent to chapter 51 3 of title 12 of the New York city administrative code as it existed on 52 the date this charter was submitted pursuant to subdivision c of section 53 4 of chapter 773 of the laws of 1989 and shall also provide for a Staten 54 Island municipal labor committee. 55 § 14-05. Compensation.

S. 8578 53 1 (a) Board of collective bargaining; bureau of certification director. 2 The city members and the labor members of the board of collective 3 bargaining and their alternates shall serve without compensation. The 4 director shall be salaried for his or her services as director, chair of 5 the board of collective bargaining, and administrator of the bureau 6 certification. The director and all members of both such boards and 7 their alternates shall be entitled to receive a per diem fee and 8 reimbursement for their actual and necessary expenses incurred in the 9 performance of their duties. Fifty percent of the salary, fees, and 10 expenses provided for in this subdivision shall be paid by the members 11 of the municipal labor committee, under rules and regulations issued by 12 the board of collective bargaining, which rules may provide how such 13 costs shall be distributed among such members. 14 (b) Members of mediation and impasse panels; arbitrators. Members of 15 mediation and impasse panels, and arbitrators, shall be paid a per diem 16 fee to be determined by the board of collective bargaining, unless the 17 parties to the particular dispute shall have agreed to a different fee, 18 and shall be reimbursed for their actual and necessary expenses incurred 19 in the performance of their duties. The public employer and public 20 employee organization which are parties to the particular negotiation or 21 grievance shall each pay fifty percent of such fees and expenses and 22 related expenses incidental to the handling of deadlocked negotiations 23 and unresolved grievances. 24 (c) Appointment of counsel and attorneys. The director may appoint a 25 counsel and attorneys, who, at the direction of the bureau of certif- 26 ication or the board of collective bargaining may appear for and repre- 27 sent the office of collective bargaining or either of the aforesaid 28 boards in any legal proceeding. 29 § 14-06. Publication of collective bargaining agreements. 30 Not later than sixty calendar days after the execution of a collective 31 bargaining agreement, a copy shall be published in a newspaper of gener- 32 al circulation in the city together with a statement by the mayor: 33 (a) of the total costs and current and future budgetary and economic 34 consequences of the agreement, and 35 (b) of the implications and likely impact of the agreement on the 36 efficient management of city agencies and the productivity of city 37 employees. 38 § 14-07. Budgeting for agreements. 39 (a) So far as practicable, each collective bargaining agreement cover- 40 ing city employees shall be executed prior to the commencement of the 41 fiscal year during which its provisions shall first be in effect. 42 (b) No part of any retroactive wage or salary settlement shall be 43 charged to the capital budget. 44 Chapter 15 45 Transitory Provisions 46 § 15-01. Rights of officers and employees of the city of New York 47 preserved. 48 (a) Nothing in this charter contained shall affect or impair the 49 rights or privileges of officers or employees of the city of New York 50 who are transferred, reassigned, appointed or otherwise employed by the 51 city in relation to the personnel, appointment, salaries, ranks, grades, 52 tenure of office, promotion, removal, pension and retirement rights, 53 civil rights or any other rights or privileges of officers or employees 54 of the city generally or officers or employees of any agency. 55 (b) There shall be no layoffs of officers or employees of the city of 56 New York classified municipal civil service as a result of transfer of

S. 8578 54 1 functions or work currently being performed by employees or officers of 2 the city of New York to the city of Staten Island. The city shall guar- 3 antee the continued employment of all officers and employees of the city 4 of New York who are performing duties and functions related to any 5 municipal governmental operation affecting the city of Staten Island at 6 the time this charter takes effect. 7 § 15-02. Transfer of officers and employees in case of transfer of 8 functions. 9 Wherever by any provision of this charter functions, powers or duties 10 are assigned to any agency which have been heretofore exercised by the 11 city of New York, its agencies, boards, corporations or other related 12 entities, all officers and employees in the classified municipal civil 13 service who at the time when such charter provisions shall take effect 14 are engaged in the performance of such functions, powers or duties shall 15 be transferred to the agency to which such functions, powers or duties 16 are assigned by this charter, without examination and without affecting 17 existing compensation or pension or retirement rights, privileges or 18 obligations of such officers and employees. Furthermore, any employee to 19 be transferred to the city pursuant to this charter shall be given the 20 option to remain in the employ of the city of New York without diminu- 21 tion of rights, privileges, salary and benefits. Any employee not 22 included in such transfer shall be able to protest the decision pursuant 23 to the procedures set forth in section seventy of the civil service law. 24 § 15-03. Continuity of employee representation. 25 Employees transferred from the city of New York to the city except for 26 those designated managerial or confidential shall be included in employ- 27 er - employee negotiating units comparable to existing units in the city 28 of New York. With respect to employees to be placed in such negotiating 29 units, the public employee organization recognized or certified to 30 represent the employees in comparable city of New York negotiating units 31 shall be recognized as the city unit representative. 32 § 15-04. Continuity of collectively bargained benefits. 33 All rights, privileges and benefits provided by collectively bargained 34 agreements to city of New York employees shall be continued for such 35 employees transferred, reappointed or otherwise employed by the city 36 until such time as successor collective bargaining agreements are nego- 37 tiated. 38 § 15-05. Future alterations of the negotiating units. 39 Future alterations of the city negotiating units shall be made pursu- 40 ant to article fourteen of the state civil service law and office of 41 collective bargaining implementing legislation. 42 § 15-06. Establishment of new titles. 43 (a) The city shall consult and bargain on all terms and conditions of 44 employment with the appropriate public employee organization with 45 respect to the establishment of any new titles which are similar to or 46 reasonably related to titles already represented by such public employee 47 organizations in the city or in the city of New York. 48 (b) Any such titles for which terms and conditions are bargained 49 pursuant to subdivision (a) of this section shall be deemed to be 50 successor titles within the meaning of applicable law. So long as the 51 responsibilities of employees in these titles are reasonably related to 52 the responsibilities of employees currently represented by public 53 employee organizations, such titles shall be accredited or placed in a 54 negotiating unit represented by such public employee organizations. 55 § 15-07. Dispute resolution.

S. 8578 55 1 If a dispute arises, the office of collective bargaining shall deter- 2 mine which public employee organization is appropriate to represent 3 transferees, other hires, or employees in a new title on the basis of 4 the title's community of interest with titles in the city and the city 5 of New York. 6 § 15-08. Existing rights and remedies preserved. 7 No existing right or remedy of any character shall be lost or impaired 8 or affected by reason of the adoption of this charter. 9 Chapter 16 10 Labor Relations 11 § 16-01. Department; commissioner. 12 (a) There is established a department of labor relations, the head of 13 which shall be the commissioner of labor relations. 14 (b) The commissioner of labor relations is hereby authorized to repre- 15 sent the mayor in the conduct of all relations between the city and 16 labor unions, associations, or other organizations representing employ- 17 ees of the city. The commissioner of labor relations shall be responsi- 18 ble for the conduct of all relations and she or he shall establish broad 19 city wide policy governing them. 20 (c) The appropriate city staff agencies shall render advice to the 21 commissioner of labor relations on questions of law, finance, personnel 22 policy, operations and management. 23 § 16-02. Powers and duties. 24 (a) The commissioner of labor relations is authorized to negotiate 25 labor agreements with the unions certified as representing the various 26 groups of city employees, and to prepare and sign labor agreements on 27 behalf of the mayor. 28 (b) The heads of all city departments and agencies and the staff of 29 the office of the mayor shall cooperate fully with the commissioner of 30 labor relations in carrying out his or her responsibilities. This coop- 31 eration shall include, but not be limited to the following: 32 1. notice and transmittal to the commissioner of labor relations of 33 all inquiries and requests from labor unions, associations or other 34 organizations representing employees of the city soliciting interpreta- 35 tion of any agreement; 36 2. actions by city departments or agencies based upon interpretations 37 of collective bargaining agreement shall not be taken without prior 38 consultation with the commissioner of labor relations; 39 3. agreements, contracts or understandings, verbal or written, shall 40 be consummated between the head of any city department or agency or one 41 of his or her subordinates, and a union or organization representing 42 employees of that agency, only after prior consultation and review by 43 the commissioner of labor relations; 44 4. grievance and dispute settlement procedures such as arbitration, 45 mediation, fact-finding and labor-management conference discussions 46 relating to city employee labor disputes or grievances, either advisory 47 or binding, shall be entered into by city departments or agencies only 48 after prior consultation and review of the commissioner of labor 49 relations. Such settlement procedures shall be processed through and 50 handled by the department of labor relations; 51 5. city departments and agencies shall not unilaterally change, in a 52 substantial way, the working conditions of their employees without prior 53 consultation with the commissioner of labor relations; 54 6. city departments and agencies shall not take disciplinary action 55 against any employee or group of employees involved in a labor relations

S. 8578 56 1 dispute without prior consultation with the commissioner of labor 2 relations; 3 7. city departments and agencies shall provide the commissioner of 4 labor relations with all necessary information needed in the conduct of 5 labor negotiations affecting employees in their departments and shall 6 participate with the commissioner of labor relations in the negotiations 7 as, in the opinion of the commissioner of labor relations, may be neces- 8 sary from time to time; 9 8. heads of city departments and agencies and the staff of the office 10 of the mayor shall give notice to the commissioner of labor relations of 11 all meetings held with labor unions, associations, or other organiza- 12 tions representing city employees; 13 9. heads of city departments and agencies and the staff of the mayor 14 shall consult with the commissioner of labor relations prior to the 15 issuance of any public or press statement relating to labor relations 16 with city employees; 17 10. the labor relations officer of each city department and agency 18 shall act as liaison with the department of labor relations and shall 19 keep that department informed of employee relations problems in his or 20 her department or agency. In particular, he or she shall immediately 21 notify the department of labor relations of any threatened or actual 22 strike, work stoppage, job action, mass resignation or picketing by 23 employees of his or her department or agency. 24 § 3-001. Legislative findings and declaration of purposes. 25 The legislature hereby finds and declares that it is essential that a 26 municipal corporation of the city of Staten Island be authorized to 27 represent the interests of the city of Staten Island during the transi- 28 tion period prior to the date of establishment of the city, provide 29 preparation for the operations of the city and provide financing for 30 such transition period and initial funding for the city. 31 § 3-002. Elections. 32 1. The board of elections of the city of New York shall provide for 33 the election of a mayor, a city comptroller and a common council, as 34 provided for in chapter 773 of the laws of 1989, as amended, for a poli- 35 tical subdivision of the state to be known as the city of Staten Island, 36 at the general election to be held in November next succeeding the date 37 on which this section shall have become a law in the county of Richmond. 38 Such expenses for such election will be reimbursed by the state from 39 those moneys to be allocated as general state aid to a city of Staten 40 Island. Chapter 7 of title 3 of the administrative code of the city of 41 New York, known as the "New York City Campaign Finance Act", shall not 42 apply to such elections. 43 2. The Mayor elect and common council elect of the city of Staten 44 Island, upon the constitutional oath of office, are hereby authorized to 45 represent the interests of the city of Staten Island, and as govern- 46 mental officers of the city of Staten Island are authorized to enter 47 into negotiations as provided under this act and enter into such 48 purchase or employment contracts as would be authorized for such city 49 subsequent to the date of establishment. Any such contracts or agree- 50 ments from such negotiations shall be binding upon the city of Staten 51 Island. 52 3. The mayor elect, the comptroller elect and the common council elect 53 shall take the oath of office on the first of January next succeeding 54 the date on which this act shall have become a law, at which time the 55 city shall be incorporated. The mayor, city comptroller and common coun- 56 cil shall establish accounts according to the provisions of the charter

S. 8578 57 1 of the city of Staten Island and appoint such other city officers as may 2 be necessary in accordance with the provisions of the city charter. 3 § 3-003. Staten Island city government-transition. 4 1. Short title. This section may be cited as the "Staten Island City 5 Government-Transition Act". 6 2. Definitions. For the purposes of this section: 7 (a) "City" means the city of Staten Island. 8 (b) "Director of management and budget" means the director of manage- 9 ment and budget of the city of Staten Island. 10 (c) "Corporation" means the municipal corporation as created by this 11 section. 12 (d) "Mayor" means the mayor of the city of Staten Island. 13 (e) "Comptroller" means the comptroller of the city of Staten Island. 14 (f) "State" means the state of New York. 15 (g) "Bonds" and "notes" means revenue bonds and notes respectively, 16 issued by the corporation pursuant to this section. 17 (h) "Revenues" means all aid, rents, fees, charges, payments and other 18 income and receipts paid or payable to the municipal corporation for the 19 account of the city of Staten Island, including any payment required to 20 be made to the corporation by this section. 21 (i) "Operating expenses" means all expenses incurred by the government 22 in the administration of the municipal corporation including but not 23 limited to salaries, administrative expenses, insurance premiums, audit- 24 ing and legal expenses and fees and expenses incurred for professional 25 consultants and fiduciaries. 26 (j) "Capital reserve fund requirement" means as of any particular date 27 of computation, an amount of money equal to the amount required, for the 28 then current fiscal year of the municipal corporation, to pay interest 29 during such fiscal year on all bonds of the corporation outstanding on 30 said date of computation, the principal amount of all bonds of the 31 corporation outstanding on said date of computation which matures during 32 such fiscal year and the amount of sinking fund payments payable during 33 such fiscal year with respect to any bonds of the corporation outstand- 34 ing on said date of computation. 35 (k) "Sinking fund payment" means the amount of money specified in the 36 resolution authorizing bonds as payable into a sinking fund during a 37 particular fiscal year for the retirement of term bonds which mature 38 after such fiscal year, but shall not include any amount payable by 39 reason only of the maturity of the bond. 40 3. General powers as a municipal corporation. The city shall have the 41 following powers in addition to those specially conferred elsewhere in 42 this act: (a) to sue and be sued; (b) to have a seal and alter the same 43 at pleasure; (c) to make and alter by-laws for its organization and 44 internal management and, subject to agreements with noteholders or bond- 45 holders, to make rules and regulations governing the use of its property 46 and facilities; (d) to make and execute contracts, leases, subleases and 47 all other instruments or agreements necessary or convenient for the 48 exercise of its powers and functions under this section; (e) to purchase 49 real or personal property necessary and convenient for its municipal 50 purposes; to execute and deliver deeds for real property held in its own 51 name; and to sell or otherwise to dispose of such real or personal prop- 52 erty that, in the judgment of the city, is no longer necessary for its 53 municipal purposes; (f) to appoint officers, agents and employees, 54 prescribe their duties and qualifications and fix their compensation; 55 (g) to commence any action to protect or enforce any right conferred 56 upon it by any law, contract or other agreement; (h) to borrow money and

S. 8578 58 1 to issue negotiable notes or bonds or other obligations and to fund or 2 refund the same, and to provide for the rights of the holders of its 3 obligations; (i) subject to the provisions of any contract with note- 4 holders or bondholders, to invest any funds held in reserves or sinking 5 funds, or any funds not required for immediate use or disbursement, at 6 the discretion of the city, in obligations of the state or federal 7 government, obligations the principal of and interest on which are guar- 8 anteed by the state or federal government, or obligations of agencies of 9 the federal government which may, from time to time, be legally 10 purchased by savings banks of the state as investments of funds belong- 11 ing to them or in their control and which have been approved by the 12 state comptroller or in secured time deposits or other interest bearing 13 accounts secured by such obligations; (j) subject to the provisions of 14 any contract with noteholders or bondholders, to purchase notes or bonds 15 of the city; (k) to procure insurance against any loss in such amounts 16 and from such insurers as it deems desirable; (l) to engage the services 17 of consultants on a contract basis for rendering professional and tech- 18 nical assistance and advice; (m) to contract for and to accept any gifts 19 or grants or loans of funds or property or financial or other aid in any 20 form from the federal government or any agency or instrumentality there- 21 of, or from any other source and to comply with the terms and conditions 22 thereof; (n) as security for the payment of the principal of and inter- 23 est on any bonds so issued and any agreements made in connection there- 24 with, to pledge all or any part of its revenues; (o) to enact such local 25 laws to take effect on the date of establishment as shall be necessary 26 to provide for effective transition of government; and (p) to do any and 27 all things necessary or convenient to carry out its purposes and exer- 28 cise the powers expressly given and granted in this act. 29 4. Notes and bonds of the city. The city shall have power and is here- 30 by authorized from time to time to issue its negotiable notes and bonds 31 in conformity with applicable provisions of the uniform commercial code, 32 the local finance law and the state finance law. 33 § 3-004. Employees of the city of Staten Island. 34 1. Notwithstanding any inconsistent provisions of this act, the 35 appointment and promotion of all employees of and for the city shall be 36 made in accordance with the provisions of the state civil service law 37 and shall be subject to the jurisdiction of the state civil service 38 commission and the compensation for such employees shall be fixed by the 39 city. 40 2. Any municipality and the city shall have the power to agree to 41 provide for the transfer to the city of agents, employees and facilities 42 of such municipality to enable the city to fulfill its municipal 43 purposes. Employees of such municipality to be transferred to the city 44 pursuant to this act shall be automatically appointed and transferred to 45 the city in the same or equivalent classification and position they hold 46 at the time of the transfer. The city, its officers and employees, 47 shall be subject to article fourteen of the state civil service law and 48 for all purposes the city shall remain and be deemed "public employer". 49 Employees who are members or beneficiaries of any existing pension or 50 retirement system shall continue to have such rights, privileges, obli- 51 gations or status with respect to such system as are prescribed by law 52 on the date this act takes effect, and all such employees who have been 53 appointed to positions in municipal service in accordance with the 54 provisions of the state civil service law under the rules of the city 55 civil service commission shall have the same status with respect thereto 56 in the service of the city as they had in prior municipal service.

S. 8578 59 1 3. Transfer rights. Notwithstanding any other provision of law, there 2 shall be no layoffs of officers or employees of the preceding munici- 3 pality, its agencies, authorities, boards, corporations or other related 4 entities as a result of the transfer of functions or work currently 5 performed by these officers and employees to the city of Staten Island. 6 All such employees who have been assigned to work on Staten Island or 7 who have been substantially engaged in the performance of a function to 8 be transferred to the city of Staten Island shall be transferred to 9 positions in employment by the city of Staten Island upon the establish- 10 ment of the city of Staten Island and shall retain all rights, privi- 11 leges, benefits and salaries to which any such employee was previously 12 entitled as an employee of the preceding municipality. Notice that an 13 employee is subject to transfer shall be given to an employee no less 14 than twenty days prior to the effective date of transfer. Any employee 15 so notified may opt to remain in his or her employment by the preceding 16 municipality rather than be transferred by so informing his or her 17 employer ten days prior to the transfer date. Such employee shall be 18 retained in employment by the preceding municipality and retain all 19 rights, privileges, benefits and salaries to which the employee was 20 entitled prior to the establishment of the city of Staten Island. 21 4. Transfer mechanism. The mechanism for the transfer of the employees 22 to the city of Staten Island shall be the subject of negotiations among 23 the preceding municipality, the city of Staten Island and the appropri- 24 ate public employee organizations. The parties shall negotiate an 25 appeals process for employees aggrieved by their exclusion from the 26 transfer. If the parties are unable to reach agreement as to transfer 27 issues, the parties shall submit such issues to mediation and, if neces- 28 sary, impasse panels to be appointed in accordance with the collective 29 bargaining provisions of the administrative code of the preceding muni- 30 cipality. Transferees represented by the public employee organizations 31 shall be entitled to all rights and benefits which they were entitled to 32 prior to transfer including, but not limited to, seniority and accrued 33 annual and sick leave time. 34 5. Vacancies. Any employee of the preceding municipality not subject 35 to the transfer set forth in subdivision three of this section shall be 36 eligible to transfer to a vacant position in a title in the city of 37 Staten Island requiring the same, similar or related duties to duties 38 actually performed in the preceding municipality title by submitting 39 written notice of intent to transfer to the city of Staten Island direc- 40 tor of personnel within six months of the establishment of the city of 41 Staten Island. The preceding municipality shall inform in writing 42 employees who are residents of Staten Island of their right to apply for 43 transfer. Immediately upon receipt of any notice to transfer, the direc- 44 tor of personnel shall establish for each city of Staten Island title 45 two lists of eligible employees who give timely notice in order of the 46 employees' preceding municipality seniority in the title requiring the 47 same, similar or related duties. The first list shall include the names 48 of transfer applicants who are domiciled in the city of Staten Island on 49 the date of the submission of the notice. The second list shall include 50 the names of transfer applicants not domiciled in the city of Staten 51 Island. Appointments to any vacant positions in these titles shall be 52 made from the Staten Island domicile list and, when that list is 53 exhausted, from the second list until such lists are exhausted or until 54 a period of four years from the date of the establishment of the indi- 55 vidual list has expired.

S. 8578 60 1 6. Residency exemption. Any employee of the preceding municipality 2 appointed, reassigned or transferred to city of Staten Island employment 3 without a break in service shall be exempt from any residency require- 4 ment in connection with his or her employment or subsequent promotion, 5 demotion, reassignment, transfer or other personnel change. For the 6 purpose of this section, a break in service shall be defined as a period 7 of more than one year. Notwithstanding any other provision of law, any 8 Staten Island resident employed by the preceding municipality or on 9 leave of absence from such employment on the date of the establishment 10 of the city of Staten Island shall be exempt from any residency require- 11 ment in connection with his or her preceding municipality employment or 12 subsequent preceding municipality promotion, demotion, reassignment, 13 transfer or other personnel change. 14 7. Retirement. The city of Staten Island shall participate in the 15 State's retirement systems. 16 (a) On and after the date of the establishment of the city of Staten 17 Island, employees of the preceding municipality who are transferred to 18 employment in the city of Staten Island shall thereupon become members 19 of the appropriate state retirement system to the extent permitted or 20 required by the provisions of the retirement and social security law, 21 the education law or local law, as appropriate, and the employees' 22 reserves in any other retirement system shall be transferred to the 23 appropriate New York state retirement system without request by them or 24 notice to the retirement systems, except that any such employee who is a 25 member of one of the retirement systems of the preceding municipality 26 may elect to continue membership in such system. Any election pursuant 27 to this subdivision shall be made no later than the one hundred twenti- 28 eth day succeeding the date on which the provisions of this section 29 become effective, by filing a written notice thereof with the adminis- 30 trative head of the appropriate New York state, preceding municipality 31 and city of Staten Island retirement systems, as appropriate, and once 32 made and filed, shall be irrevocable. Upon the retirement of an employee 33 who has made such an election, the calculation of final average salary 34 by the retirement system of the preceding municipality shall be 35 performed as if the salary earned as a city of Staten Island employee on 36 and after the effective date of this section was earned in employment of 37 the preceding municipality. In the case of an employee who remains or 38 becomes a member of a New York state employees' retirement system pursu- 39 ant to this subdivision, the retirement system of the preceding munici- 40 pality shall make a transfer of reserves, contributions and credits to 41 such New York state employees' retirement system, in the manner required 42 by section 43 of the retirement and social security law. 43 (b) The comptroller of the preceding municipality shall certify to the 44 comptroller of the city of Staten Island and the state comptroller or 45 other chief officer of a state pension system the amount of money 46 required to be paid by the city of Staten Island for pension costs 47 resulting from elections made pursuant to paragraph (a) of this subdivi- 48 sion and the comptroller of the city of Staten Island shall pay to the 49 retirement system of the preceding municipality upon approval by the 50 state comptroller or other chief officer of a state pension system, the 51 amounts so certified by the comptroller of the preceding municipality. 52 The comptroller of the preceding municipality shall also certify to the 53 comptroller of the city of Staten Island and the state comptroller or 54 other chief officer of a state pension system the amount of money 55 required to be contributed by such employees. The comptroller of the 56 city of Staten Island shall be authorized to provide for the withholding

S. 8578 61 1 or withhold the contribution of such employees and the payment of that 2 amount to the retirement system of the preceding municipality. The 3 amount so certified pursuant to this paragraph shall be the same as the 4 amounts required to be contributed for similarly situated city employees 5 by the preceding municipality and by employees of the preceding munici- 6 pality. 7 8. Health insurance coverage. Health insurance coverage for city of 8 Staten Island employees, persons retired from city of Staten Island 9 employment and dependents of such employees and retirees shall be 10 provided in accordance with the personnel and labor, health insurance 11 coverage for municipal employees, persons retired from municipal employ- 12 ment and dependents of such employees and retirees provisions of the 13 administrative code of the preceding municipality unless the duly recog- 14 nized public employee representative negotiates altered terms. 15 9. Quasi-public entities. Rights and benefits of employees currently 16 employed by public authorities, boards, corporations and other quasi- 17 public entities of the preceding municipality shall be preserved upon 18 any transfer of functions resulting from the establishment of the city 19 of Staten Island. 20 § 3-005. Assistance to the city of Staten Island. 21 With the consent of any municipality, the city of Staten Island may 22 use agents, employees and facilities of such municipality, paying to the 23 municipality its agreed proportion of the compensation or costs. 24 § 3-006. Provision of municipal services in the city of Staten Island. 25 During the transition period the mayor and comptroller of the city of 26 Staten Island and the mayor and comptroller of the preceding munici- 27 pality are authorized to enter into agreements as to the provision of 28 municipal services by the preceding municipality to the city of Staten 29 Island to be provided on or after the date of establishment of the city 30 of Staten Island and the terms and conditions thereof. 31 § 3-007. Debt, property, obligations and other allocations. 32 1. (a) Proportion of debt to be assumed by the city of Staten Island. 33 The proportion of the debt of the preceding municipality which shall be 34 assumed by the city of Staten Island, as constituted by this act, shall 35 be determined in the following manner: The mayor and the comptroller of 36 the city of Staten Island, as representing the city of Staten Island and 37 the mayor and the comptroller of the preceding municipality, are hereby 38 authorized and empowered to agree if they can, as to the amount of the 39 debt of the preceding municipality, which should equitably and properly 40 be assumed by the city of Staten Island. If the mayor and the comp- 41 troller of the city of Staten Island and the mayor and the comptroller 42 of the preceding municipality shall be unable to agree within six months 43 after this section takes effect as to the proportion of said debt of the 44 preceding municipality to be assumed by the city of Staten Island, the 45 supreme court of the third judicial district shall have power to deter- 46 mine the proportion of said debt of the preceding municipality to be 47 assumed by the city of Staten Island, and to enforce such award, deci- 48 sion and determination as shall be made in an action to be brought by 49 and in the name of either of said parties not less than six months nor 50 more than one year after this section takes effect. Nothing herein 51 contained shall impair the obligation of any contract; and the property 52 and inhabitants of such part of the preceding municipality as is by this 53 act included within the city of Staten Island, shall continue liable to 54 the existing creditors of the said preceding municipality, in like 55 manner, as if this act had not been passed. But from and after the 56 taking effect of this section, the preceding municipality shall have no

S. 8578 62 1 power to issue any bond, obligation or other evidence of indebtedness 2 which shall bind or render liable the property or inhabitants of any 3 part of said municipality included within the city of Staten Island as 4 hereby constituted. The apportionment of the debt of the preceding muni- 5 cipality shall be determined according to the relative assessed valu- 6 ation of the real property included in, or remaining without the city of 7 Staten Island. 8 (b) Proportion of obligations other than debt to be assumed by the 9 city of Staten Island. The proportion of the obligations other than debt 10 of the preceding municipality which shall be assumed by the city of 11 Staten Island, as constituted by this act, shall be determined in the 12 following manner: The mayor and the comptroller of the city of Staten 13 Island, as representing the city of Staten Island and the mayor and the 14 comptroller of the preceding municipality, are hereby authorized and 15 empowered to agree if they can, as to the amount of the obligations 16 other than debt of the preceding municipality, which should equitably 17 and properly be assumed by the city of Staten Island. If the mayor and 18 the comptroller of the city of Staten Island and the mayor and the comp- 19 troller of the preceding municipality shall be unable to agree within 20 six months after this section takes effect as to the proportion of said 21 obligations other than debt of the preceding municipality to be assumed 22 by the city of Staten Island, the supreme court of the third judicial 23 district shall have power to determine the proportion of said obli- 24 gations other than debt of the preceding municipality to be assumed by 25 the city of Staten Island, and to enforce such award, decision and 26 determination as shall be made in an action to be brought by and in the 27 name of either of said parties not less than six months nor more than 28 one year after this section takes effect. Nothing herein contained shall 29 impair the obligation of any contract; and the property and inhabitants 30 of such part of the preceding municipality as is by this act included 31 within the city of Staten Island, shall continue liable to the existing 32 obligees of the said preceding municipality, in like manner, as if this 33 act had not been passed. But from and after the taking effect of this 34 section, the preceding municipality shall have no power to bind or 35 render liable the property or inhabitants of any part of said munici- 36 pality included within the city of Staten Island as hereby constituted. 37 (c) Disposition of real and personal property owned by or held in 38 trust for the preceding municipality. All the real property owned by the 39 preceding municipality and situated in that part of said municipality 40 included within the city of Staten Island, as constituted by this act, 41 is hereby vested in the said city of Staten Island and divested out of 42 the preceding municipality, and all of the real property owned by the 43 preceding municipality and situated elsewhere in said municipality is 44 hereby vested in the preceding municipality and divested out of the said 45 city of Staten Island. All of the property owned by the preceding muni- 46 cipality other than real property, including money, investments, securi- 47 ties on investments and money held in trust for the benefit of said 48 municipality, directly or indirectly, shall be divided between the 49 preceding municipality and the city of Staten Island, as constituted by 50 this act, and the proportion of the same to which each shall, in equity 51 and good conscience, be entitled to receive upon such division, shall be 52 ascertained and determined by agreement by and between the mayor and 53 comptroller of the preceding municipality, upon the one side, and the 54 mayor and the comptroller of the said city of Staten Island, upon the 55 other side, and in the case of their inability to agree upon such divi- 56 sion within six months after this section shall take effect, the supreme

S. 8578 63 1 court in the third judicial district is hereby empowered to divide the 2 same between them and to ascertain and award to each its equitable 3 proportion thereof, and to enforce its determination thereon, and either 4 of the said municipalities may institute and prosecute, in its own name, 5 an action in said court for that purpose after the expiration of six 6 months and before the expiration of one year after this section takes 7 effect. 8 (d) Documents. The preceding municipality shall provide the city of 9 Staten Island with all books, papers, documents and files held by such 10 municipality which apply primarily to the area of the city of Staten 11 Island and shall make available for copying by the city of Staten Island 12 any other books, papers, documents and files which such city shall 13 request as pertaining to such city in any other manner. 14 2. (a) Proportion of debt to be assumed by the city school district of 15 the city of Staten Island. The proportion of the debt of the city school 16 district of the preceding municipality which shall be assumed by the 17 city school district of the city of Staten Island, as constituted by 18 this act, shall be determined in the following manner: The board of 19 education of the city school district of the city of Staten Island and 20 the board of education of the city school district of the preceding 21 municipality, are hereby authorized and empowered to agree if they can, 22 as to the amount of the debt of the city school district of the preced- 23 ing municipality, which should equitably and properly be assumed by the 24 city school district of the city of Staten Island. If the board of 25 education of the city school district of the city of Staten Island and 26 the board of education of the city school district of the preceding 27 municipality shall be unable to agree within six months after this 28 section takes effect as to the proportion of said debt of the city 29 school district of the preceding municipality to be assumed by the city 30 school district of the city of Staten Island, the supreme court of the 31 third judicial district shall have power to determine the proportion of 32 said debt of the city school district of the preceding municipality to 33 be assumed by the city school district of the city of Staten Island, and 34 to enforce such award, decision and determination as shall be made in an 35 action to be brought by and in the name of either of said parties not 36 less than six months nor more than one year after this section takes 37 effect. Nothing herein contained shall impair the obligation of any 38 contract; and the property and inhabitants of such part of the city 39 school district of the preceding municipality as is by this act included 40 within the city school district of the city of Staten Island, shall 41 continue liable to the existing creditors of the city school district of 42 the said preceding municipality, in like manner, as if this act had not 43 been passed. But from and after the taking effect of this section, the 44 city school district of said preceding municipality shall have no power 45 to issue any bond, obligation or other evidence of indebtedness which 46 shall bind or render liable the property or inhabitants of any part of 47 the city school district of said municipality included within the city 48 school district of the city of Staten Island as hereby constituted. The 49 apportionment of the debt of the city school district of the preceding 50 municipality shall be determined according to the relative assessed 51 valuation of the real property included in, or remaining without the 52 city school district of the city of Staten Island. 53 (b) Disposition of real and personal property owned by or held in 54 trust for the city school district of the preceding municipality. All 55 the real property owned by the city school district of the preceding 56 municipality and situated in that part of the city school district of

S. 8578 64 1 said municipality included within the city school district of the city 2 of Staten Island, as constituted by this act, is hereby vested in the 3 city school district of the city of Staten Island and divested out of 4 the city school district of the preceding municipality, and all of the 5 real property owned by the city school district of the preceding munici- 6 pality and situated elsewhere in the city school district of the preced- 7 ing municipality is hereby vested in the city school district of the 8 preceding municipality and divested out of the city school district of 9 the city of Staten Island. All of the property owned by the city school 10 district of the preceding municipality other than real property, includ- 11 ing money, investments, securities on investments and money held in 12 trust for the benefit of the city school district of the preceding muni- 13 cipality, directly or indirectly, shall be divided between the city 14 school district of the preceding municipality and the city school 15 district of the city of Staten Island, as constituted by this act, and 16 the proportion of the same to which each shall, in equity and good 17 conscience, be entitled to receive upon such division, shall be ascer- 18 tained and determined by agreement by and between the board of education 19 of the city school district of the preceding municipality, upon the one 20 side, and the board of education of the city school district of the city 21 of Staten Island, upon the other side, and in the case of their inabili- 22 ty to agree upon such division within six months after this section 23 shall take effect, the supreme court in the third judicial district is 24 hereby empowered to divide the same between them and to ascertain and 25 award to each its equitable proportion thereof, and to enforce its 26 determination thereon, and either of the said school districts may 27 institute and prosecute, in its own name, an action in said court for 28 that purpose after the expiration of six months and before the expira- 29 tion of one year after this section takes effect. 30 (c) Documents. The city school district of the preceding municipality 31 shall provide the city school district of the city of Staten Island with 32 all books, papers, documents and files held by such school district 33 which apply primarily to the area of the city school district of the 34 city of Staten Island, including its property, faculty and students, and 35 shall make available for copying by the city school district of the city 36 of Staten Island any other books, papers, documents and files which the 37 city school district of the city of Staten Island shall request as 38 pertaining to the city school district of the city of Staten Island in 39 any other manner. 40 § 3-008. Continuance of municipal services. 41 The preceding municipality shall be obligated to continue to maintain 42 during the transition period all municipal services and related equip- 43 ment and supplies at a level materially equivalent to that level of 44 municipal services and related equipment and supplies for the geograph- 45 ical area of the city of Staten Island as existing on the first of July 46 in the year in which this act shall have become a law subject to exist- 47 ing budget restraints of the preceding municipality. 48 § 3-009. Powers of the city of Staten Island to adopt and amend local 49 laws. 50 Notwithstanding the provisions of any other law, the common council of 51 the city of Staten Island shall have the power to adopt local laws in 52 accordance with the provisions of section 10 of the municipal home rule 53 law; provided, however, that no such local law adopted during the tran- 54 sition period shall be effective until the date of establishment of the 55 city of Staten Island.

S. 8578 65 1 § 3-010. Powers of the city of Staten Island relating to home rule 2 powers. 3 In accordance with the provisions of article IX of the constitution, 4 the city of Staten Island during the transition period shall have all of 5 the rights, powers, privileges and immunities granted to local govern- 6 ments with respect to the power of the legislature to act in relation to 7 the property or affairs of the city of Staten Island. 8 § 4-001. City school district of the city of Staten Island. 9 1. The territory of the city of Staten Island in the county of Rich- 10 mond, on the date when this act shall take effect, shall be and is here- 11 by constituted a city school district, and shall be known as the city 12 school district of the city of Staten Island and shall have and enjoy 13 all the powers and duties of a city school district under the provisions 14 of the education law. 15 2. Such district shall be under the control of a board of education, 16 which shall be composed pursuant to the provisions of article 52 of the 17 education law. 18 § 4-002. Section 2550 of the education law, as amended by chapter 65 19 of the laws of 1972, is amended to read as follows: 20 § 2550. Application of article. This article shall apply to the city 21 school districts of the following cities only: New York, Buffalo, 22 Rochester, Syracuse, Staten Island and Yonkers. 23 § 4-003. Section 2552 of the education law is amended by adding a new 24 subdivision e to read as follows: 25 e. City school district of the city of Staten Island: nine members. 26 § 4-004. Subdivisions 1, 2, 4, 5 and 6 of section 2553 of the educa- 27 tion law, subdivision 1 as separately amended by chapters 211 and 441 of 28 the laws of 1980, subdivisions 2, 4 and 5 as added by chapter 242 of the 29 laws of 1974 and subdivision 6 as amended by chapter 211 of the laws of 30 1980, are amended to read as follows: 31 1. No person shall be eligible to the office of member of a board of 32 education who is not a citizen of the United States, who is not quali- 33 fied to register for or vote at an election in accordance with the 34 provisions of section 5-106 of the election law, and who, in the case of 35 the city school district of the city of Yonkers, has not been a resident 36 of the city school district for which [he] such person is chosen for a 37 period of at least three years immediately preceding the date of [~~his~~] 38 such person's election or appointment and who, in the case of the city 39 school district of the city of Buffalo, in the case of a member to be 40 elected at large is not a qualified voter of such city school district 41 and who has not been a resident of such district for a period of at 42 least three years immediately preceding the date of [~~his~~] such person's 43 election and in the case of a member elected from a city school subdis- 44 trict is not a qualified voter of such city school subdistrict and has 45 not been a resident of the city school district for three years and a 46 resident of the city school subdistrict which [he] such person repres- 47 ents or seeks to represent for a period of one year immediately preced- 48 ing the date of [~~his~~] such person's election, and who, in the case of 49 the city school district of the city of Rochester, is not a qualified 50 voter under section 5-102 of the election law of such city school 51 district; and who, in the case of the city school district of the city 52 of Staten Island has been a qualified voter under section 5-102 of the 53 election law of such city school district for at least ninety days imme- 54 diately preceding the date of such person's election or appointment; and 55 who in the case of the city school district of the city of Syracuse has 56 not been a qualified voter under section 5-102 of the election law of

S. 8578 66 1 such city school district for at least ninety days immediately preceding 2 the date of [~~his~~] such person's election or appointment. 3 2. In the city school districts of the cities of Rochester and Syra- 4 cuse the members of such board of education shall be chosen by the 5 voters at large at either a general or municipal election, or at both. 6 In the city school district of the city of Staten Island the members of 7 such board of education shall be chosen pursuant to the provisions of 8 subdivision twelve of this section. In the city school district of the 9 city of Buffalo the members of such board of education shall be chosen 10 pursuant to the provisions of subdivision ten of this section. 11 4. In the city school districts of the following cities, the terms of 12 such members shall be as follows: 13 a. Rochester: Four Years; 14 b. Syracuse: Four Years; 15 c. Yonkers: Five Years; and 16 d. Staten Island: Three Years. 17 5. The terms of one-fifth of all the members of a board of education, 18 or of a fraction as close to one-fifth thereof as possible, shall expire 19 annually on the first Tuesday in May, except in the city school 20 districts of the cities of Buffalo, Rochester, Staten Island and Syra- 21 cuse. 22 6. If a vacancy occurs other than by expiration of term in the office 23 of a member of a board of education in a district in which such members 24 are elected at a general or municipal election, such vacancy shall be 25 filled by appointment by the mayor until the next general or municipal 26 election is held, and such vacancy shall then be filled at such election 27 for the unexpired portion of such term, except that in the city school 28 district of the city of Rochester any such vacancy shall be filled 29 pursuant to the provisions of subdivision nine of this section and 30 except further that any such vacancy on the board of education of the 31 city school district of the city of Buffalo shall be filled pursuant to 32 the provisions of subdivision ten of this section and except that any 33 vacancy on the board of education of the city school district of the 34 city of Staten Island shall be filled pursuant to the provisions of 35 subdivision twelve of this section. 36 § 4-005. Section 2553 of the education law is amended by adding a new 37 subdivision 12 to read as follows: 38 12. a. The members of the board of education of the city school 39 district of the city of Staten Island shall be elected by the qualified 40 voters of such city as provided in this subdivision. 41 b. The members of the board of education shall be elected at large 42 throughout the city as provided for in this subdivision. 43 c. (1) Every registered voter residing in the city school district of 44 the city of Staten Island and every parent of a child of school age 45 under the jurisdiction of such school district who is a resident of the 46 city of Staten Island for at least ninety days immediately preceding 47 such election and at least eighteen years of age shall be eligible to 48 vote at such election for members of the board of education. 49 (2) Each candidate for member of the board of education of the city 50 school district of the city of Staten Island shall be required to file 51 petitions containing at least five hundred signatures. No petition shall 52 contain any political party or independent body name or label. Each 53 petition shall contain the name of only one candidate and such petition 54 shall be filed with the clerk of the board of elections of the county of 55 Richmond not earlier than the fifth Tuesday and not later than the 56 fourth Tuesday preceding the date on which an election shall be held. A

S. 8578 67 1 certificate of acceptance or declination of any individual so nominated 2 shall be filed not later than the third day after the fourth Tuesday 3 preceding the election. 4 d. No person shall be eligible for the office of member of such board 5 of education who is not a qualified voter under section 5-102 of the 6 election law of such city school district. No person shall hold at the 7 same time the office of member of the board of education and any other 8 elective office nor shall any holder of an elective office be a candi- 9 date for the office of member of such board of education. No employee of 10 the city school district of the city of Staten Island shall be a member 11 of the board of education. 12 e. The term of office of each member of the board of education of the 13 city school district of the city of Staten Island shall be three years. 14 Voting will be by means of cumulative voting. Each voter may cast up to 15 nine votes for the candidate or candidates of their choice by casting 16 all of their votes for a single candidate, by casting one vote for each 17 of nine candidates, or by allocating any combination of nine whole votes 18 among the candidates. The maximum number of votes each voter may cast 19 shall not exceed nine. Nothing in this paragraph requires that a voter 20 cast more than one vote for any one candidate. The nine candidates 21 receiving the greatest number of votes cast shall be elected. 22 f. (1) Such election for such office shall be governed by the 23 provisions of the election law in the same manner as candidates for 24 office generally to be elected by the voters of the city of Staten 25 Island except, as the case may be, as to the date of the election; and, 26 further provided, however, that each such candidate for election as a 27 member of such board of education shall be required to file a petition 28 containing signatures of at least five hundred voters of such city 29 school district. 30 (2) For the election held in May, in the year next succeeding the 31 date on which this subdivision shall have become a law, such petition 32 shall be deemed to be timely filed for such election if filed with the 33 clerk of the board of elections of Richmond county on or before April 34 ninth, in the year next succeeding the date on which this subdivision 35 shall have become a law. A petition sent by mail in an envelope post- 36 marked prior to midnight on April ninth, in the year next succeeding the 37 date on which this subdivision shall have become a law, shall be deemed 38 to be timely filed when received. Written objection to such petition 39 shall be filed within two days after the final date for filing of such 40 petition and specifications of the grounds of the objections shall be 41 filed with the board within one day after the filing of the objection 42 and institution of court proceedings relating thereto shall be commenced 43 not later than May second, in the year next succeeding the date on which 44 this subdivision shall have become a law. 45 g. Petitions for the nomination of members of such school board shall 46 be on white paper containing the required signatures of qualified voters 47 of the city of Staten Island. The sheets of such petition shall be 48 numbered consecutively, beginning with number one, at the foot of each 49 sheet. Such a petition must set forth in every instance the correct 50 date of signing, the full name of the signer and the signer's present 51 residence. A signer need not fill in the date or residence themself. 52 h. Each sheet of such a petition shall be signed in ink and shall be 53 substantially in the following form: 54 I, the undersigned, do hereby state that I am a duly qualified voter 55 of the city of Staten Island, that my present place of residence is 56 truly stated opposite my signature hereto, I intend to support at the

S. 8578 68 1 ensuing election and I do hereby nominate the following named person as 2 a candidate for nomination (for the public office of member of the board 3 of education of the city school district of the city of Staten Island at 4 large..............day of....................,) (for the city school 5 district.............day of........,) 6 In witness whereof, I have hereunto set my hand the day and year 7 placed opposite my signature. 8 Assembly Election 9 Date Name of Signer Present Residence District District 10 ....... ................ ............. ... ... 11 ....... ................ ............. ... ... 12 ....... ................ ............. ... ... 13 The petition shall be authenticated by witnesses. Such statement 14 shall be accepted for all purposes as the equivalent of an affidavit, 15 and if false shall subject the witness to the same penalties as if such 16 witness had been duly sworn. The form of such statement shall be 17 substantially as follows: 18 STATEMENT OF WITNESS 19 I,...................., (name of witness), state: I am a duly quali- 20 fied voter of the state of New York, and now reside in the city, town or 21 village of..............., in such state, at ................(fill in 22 street and house number and post office) therein. I know each of the 23 voters whose names are subscribed to this petition sheet containing 24 (fill in number).............signatures and each of them subscribed the 25 same in my presence and upon so subscribing declared to me that the 26 foregoing statement, made and subscribed by them, was true. 27 ..................... 28 Signature of witness 29 Date....... 30 i. The board of elections shall refuse to accept such petitions 31 signed by an insufficient number of qualified voters, or petitions which 32 are not timely or petitions bearing a political party or independent 33 body, name or emblem or which contain the name of more than one candi- 34 date. 35 j. Except as it may be modified by the provisions of paragraph f of 36 this subdivision, the provisions of the election law with respect to 37 acceptances by candidates nominated by independent nominating petitions 38 shall apply to candidates nominated by petitions for members of such 39 board of education. 40 k. Objections to petitions for the nomination of members of such 41 board of education and procedures and remedies applicable to such 42 objections shall be the same as those applicable to independent nominat- 43 ing petitions under the election law, except as it may be modified by 44 the provisions of paragraph d of this subdivision. 45 l. The board of elections shall cause to be printed official ballots 46 containing the names of all candidates as above provided, except that 47 the board may refuse to have the names of ineligible candidates placed 48 on such ballots. The names of the candidates shall be arranged accord- 49 ing to lot, and shall not bear the designation of any political party or 50 independent body, name or emblem. Blank spaces shall be provided so 51 that voters may vote for candidates who have not been nominated for the 52 offices to be filled at such elections. The form of such ballots shall 53 conform substantially to the form of ballots used at general elections 54 as prescribed in the election law.

S. 8578 69 1 m. Voting for the election of members of such board of education 2 shall be by voting machine, if practicable, and shall be governed by the 3 applicable provisions of the election law with respect to voting 4 machines. 5 n. If a candidate, after a petition in such candidate's behalf shall 6 have been duly filed with the clerk of the board of elections, and prior 7 to the date of the election, shall decline to accept the nomination, 8 die, remove from the school district, accept or be a candidate for 9 another elective office, or become otherwise disqualified for such city 10 school district office, a further petition may be filed with such clerk, 11 nominating another candidate in such candidate's place and stead. Such 12 further petition shall in all respects comply with the provisions of 13 paragraphs f, g and i of this subdivision, except that it may be filed 14 at any time up to and including the fifteenth day preceding the date of 15 the election pursuant to the provisions of this subdivision and the time 16 within which to accept or object to such further petition shall be 17 computed from the date of filing or said fifteenth day, whichever is 18 earlier. 19 o. Whenever a vacancy shall occur or exist in the office of member of 20 the board of education except by reason of expiration of term or 21 increase in the number of members of such board, the candidate who has 22 received the next highest total number of votes in the preceding school 23 board election as certified by the board of elections shall be selected 24 to fill the vacancy. In the event that no candidate is available, then 25 the mayor of the city of Staten Island shall appoint a person to fill 26 the vacancy for the remainder of the unexpired term. 27 p. The members so elected to the board of education shall convene on 28 the first business day in July of each year at the time of the commence- 29 ment of their term of office and select from their members a president 30 who shall serve for a term of one year or such other term, not exceeding 31 the term of such member's office, as may be fixed by the rules and regu- 32 lations of the board. 33 q. The election of members of the board of education of the city 34 school district of the city of Staten Island shall take place on May 35 second, two thousand twenty-seven and on the first Tuesday in May every 36 third year thereafter. Such election shall be conducted by the board of 37 elections of the county of Richmond in the same manner as general 38 elections are conducted by it. 39 r. Polls shall be open for voting for the hours prescribed by section 40 8-100 of the election law for primary elections. The results of such 41 elections, after canvassing, shall be certified and reported by the 42 board of elections to the city clerk and the board of education of such 43 city. 44 § 4-006. Subdivision 2 of section 2554 of the education law, as 45 amended by chapter 27 of the laws of 2012, is amended to read as 46 follows: 47 2. [To] Except as provided in subdivision one of section two thousand 48 five hundred seventy-three of this article, to create, abolish, maintain 49 and consolidate such positions, divisions, boards or bureaus as, in its 50 judgment, may be necessary for the proper and efficient administration 51 of its work; to appoint a superintendent of schools, such associate, 52 assistant, district and other superintendents, examiners, directors, 53 supervisors, principals, teachers, lecturers, special instructors, 54 medical inspectors, nurses, auditors, attendance officers, secretaries, 55 clerks, custodians, janitors and other employees and other persons or 56 experts in educational, social or recreational work or in the business

S. 8578 70 1 management or direction of its affairs as said board shall determine 2 necessary for the efficient management of the schools and other educa- 3 tional, social, recreational and business activities; provided, however, 4 that in the city school districts of the cities of Buffalo, Rochester, 5 and Syracuse appointment of associate, assistant and district super- 6 intendents, and other supervising staff who are excluded from the right 7 to bargain collectively pursuant to article fourteen of the civil 8 service law shall, within the amounts budgeted for such positions, be by 9 the superintendent of such city school district; and to determine their 10 duties except as otherwise provided herein. 11 § 4-007. Subdivision 8 of section 2554 of the education law, as 12 amended by chapter 576 of the laws of 1964, is amended to read as 13 follows: 14 8. To dispose of, in the city of New York and the city of Staten 15 Island, to the best advantage of the city of New York or the city of 16 Staten Island, either by sale or on the basis of money allowance for 17 waste paper all books delivered to the several public schools of such 18 city that have been discarded either by reason of being obsolete, no 19 longer required by the course of study, worn by long usage or mutilated 20 by accident. If disposal is made by sale it shall be to the highest 21 bidder and the money realized shall be paid into the city treasury and 22 shall at once be appropriated by the city to the special school fund of 23 the board of education entitled "supplies". If disposal is made on the 24 basis of money allowance for waste paper, it shall be to the highest 25 bidder. Such discarded books may be disposed of without public adver- 26 tisement or entry into a formal contract. Should the discarded books be 27 in such condition that no sale or exchange can be made, or should there 28 be reason to believe that such discarded books have become infected 29 through disease among the pupils, or should the superintendent of 30 schools certify that such discarded books contain erroneous, inaccurate, 31 obsolete or antiquated subject matter, illustrations, maps, charts or 32 other material, the committee on supplies of the board of education, if 33 such books cannot be sold, given away or otherwise salvaged as waste 34 paper without danger to the public health, may authorize their 35 destruction by fire, in which event the superintendent of school 36 supplies shall obtain and file in [~~his~~] such person's office a certif- 37 icate that such books have been so destroyed, signed by the principal of 38 the school in which the books are located. 39 § 4-008. Subdivision 14 of section 2554 of the education law, such 40 section as renumbered by chapter 762 of the laws of 1950, is amended to 41 read as follows: 42 14. To provide in the schools administered by the board of education 43 of the city of New York or the city of Staten Island, the proper book or 44 books, in form as required by the by-laws of the board of education of 45 such city, in which it shall cause the class teachers under the direc- 46 tion and supervision of the principal to enter the names, ages and resi- 47 dences of the pupils attending the school, the name of the parent or 48 guardian of each pupil and the days on which the pupils shall have 49 attended respectively, and the aggregate attendance of each pupil during 50 the year, and also the day upon which the school shall have been visited 51 by the superintendent of schools or by an associate superintendent of 52 schools or by an assistant superintendent, or by members of the board of 53 education, or by members of the local school board, or by any of them, 54 which entry shall be verified by such oath or affirmation of the princi- 55 pal as may be prescribed by the board of education of such city. Such 56 books shall be preserved as the property of such board of education and

S. 8578 71 1 shall at all times be open to inspection by members of such board of 2 education, by members of the local school boards and by the superinten- 3 dent of schools, or by any associate superintendent of schools, or by 4 the assistant superintendents. 5 § 4-009. Subdivision 15 of section 2554 of the education law is 6 amended by adding a new paragraph b-1 to read as follows: 7 b-1. In the city of Staten Island, the board of education shall make 8 rules and regulations for the conduct, operation and maintenance of 9 extra classroom activities and for the safeguarding, accounting and 10 audit of all moneys received and derived therefrom. In the case of any 11 extra classroom activity as it shall deem proper, and notwithstanding 12 the provisions of section twenty-five hundred thirty of this title, it 13 may direct that the moneys received or derived from the conduct, opera- 14 tion or maintenance of such an extra classroom activity be deposited 15 with the chief fiscal officer of the board of education, who in such 16 event shall be the treasurer of such an extra classroom activity, the 17 moneys of which are required to be so deposited. In the procurement of 18 articles and services for the conduct, operation and maintenance of a 19 cafeteria or restaurant service, the board of education shall be subject 20 to the provisions of subdivision ten of section twenty-five hundred 21 fifty-six of this article, except that said board of education need not 22 have duly advertised for estimates in order to contract for such arti- 23 cles or services in an amount exceeding one thousand dollars. In such 24 city, the board of education shall also have power to assign any of its 25 officers or employees to perform such duties as it may prescribe in 26 connection with an extra classroom activity and to designate such of its 27 officers and employees when so assigned from whom a bond shall be 28 required for faithful performance of their duties and to fix the sum in 29 which each such bond shall be given. 30 § 4-010. Section 2554 of the education law is amended by adding two 31 new subdivisions 29 and 30 to read as follows: 32 29. To assign, in its discretion, one or more employees of the board 33 in the city of Staten Island to serve as trial examiner with power to 34 conduct investigations and hearings on behalf of such board. Each trial 35 examiner shall report the result of any such investigation or hearing to 36 the board. 37 30. To employ a superintendent of the city of Staten Island school 38 district by contract for a four-year term of office, subject to removal 39 for cause, at a salary to be fixed within the budgetary allocation 40 therefor. 41 § 4-011. Subdivision 5 of section 2556 of the education law, as 42 amended by chapter 480 of the laws of 2014, is amended to read as 43 follows: 44 5. It shall be unlawful for a schoolhouse to be constructed in the 45 city of New York or the city of Staten Island without an open-air play- 46 ground attached to or used in connection with the same. Existing play- 47 grounds shall not be sold, leased or transferred, or permanently author- 48 ized for other uses such as school building construction, renovation, 49 placement or storage of building materials for such work that would 50 eliminate the use of such playground space for outdoor recreational 51 activities unless a plan is established and implemented to provide suit- 52 able and adequate physical activities or space to accommodate the phys- 53 ical and recreational needs of the pupils of such building. The 54 provisions of this subdivision shall not apply to school construction or 55 renovation activities that occur on or require the use of such play- 56 grounds for a duration of no more than one year.

S. 8578 72 1 § 4-012. Section 2556 of the education law is amended by adding a new 2 subdivision 6-a to read as follows: 3 6-a. After a site has been selected and plans and specifications for a 4 building thereon have been approved as provided herein, the board of 5 education of the city school district of the city of Staten Island may, 6 in its discretion, by regulation deliver such plans and specifications 7 to the common council or other local legislative body which may thereup- 8 on, in its discretion, award a contract for the erection of such build- 9 ing in the same manner and in accordance with the provisions of law 10 regulating the awarding of contracts for the construction of municipal 11 buildings of such city. 12 § 4-013. Section 2556 of the education law is amended by adding three 13 new subdivisions 10-b, 11-a and 13-a to read as follows: 14 10-b. In the city of Staten Island if the several parts of the work or 15 labor to be done and/or the supplies, materials and equipment to be 16 furnished shall together involve an expenditure of not more than ten 17 thousand dollars, the same may be procured in compliance with the proce- 18 dures on contracting provided in chapter nine of the charter of the city 19 of Staten Island. 20 11-a. In all contracts by the board of education of the city school 21 district of the city of Staten Island, for the construction, repair, 22 alteration or remodeling of buildings or for the purchase of supplies, 23 furniture or equipment, a stipulation may be inserted for liquidated 24 damages for any breach, failure or delay in the performance thereof; and 25 such board of education is authorized and empowered to remit the whole 26 or any part of such damages as in its discretion may be just and equita- 27 ble; and in all suits commenced on any such contracts or on any bond 28 given in connection therewith it shall not be necessary for such board, 29 whether plaintiff or defendant, to prove actual or specific damages 30 sustained by reason of any such breach, failure or delay, but such stip- 31 ulation for liquidated damages shall be conclusive and binding upon all 32 parties. 33 13-a. The board of education of the city school district of the city 34 of Staten Island may through its duly designated officers, agents or 35 employees enter upon public or private property for the purpose of 36 making surveys, soundings or test borings necessary for the exercise of 37 the powers or the performance of the duties, of such board of education, 38 provided, however, that the mayor had formally approved the acquisition 39 of the real property as a school site. 40 § 4-014. The education law is amended by adding three new sections 41 2560-a, 2561-a, and 2562-a to read as follows: 42 § 2560-a. Liability of board of education of the city school district 43 of the city of Staten Island. 1. Notwithstanding any inconsistent 44 provision of law, general, special or local, or the limitation contained 45 in the provisions of any city charter, any duly appointed member of the 46 board of education of the city school district of the city of Staten 47 Island, the members of the school board of such city, the teaching or 48 supervising staff, officer, or employee of such board, member of a 49 committee on special education or subcommittee thereof or authorized 50 participant in the school volunteer program in such city shall be enti- 51 tled to legal representation and indemnification pursuant to the 52 provisions of, and subject to the conditions, procedures and limitations 53 contained in section fifty-k of the general municipal law, except that 54 any judgment or settlement pursuant to this section shall be payable 55 from the moneys of the board of education.

S. 8578 73 1 2. Notwithstanding any inconsistent provision of law, general, special 2 or local, or limitations contained in the provision of any city charter, 3 it shall not be within the power of the board of education of the city 4 of Staten Island to require a volunteer participating in any school 5 activities to execute a waiver of responsibility in favor of that board 6 as a condition, either express or implied, of such participation. Such 7 waiver would include, but not be limited to, a release of any party 8 against whom the volunteer may have rights under any existing provision 9 of law for personal injuries incurred during the performance of author- 10 ized volunteer duties by an authorized participant in a school volunteer 11 program. 12 § 2561-a. Liability of certain officers and employees of the board of 13 education of the city school district of the city of Staten Island. If, 14 in order to furnish needy children or minors with food, shoes, clothing, 15 and other necessities to enable them to attend school as contemplated by 16 law and to benefit from instruction, such board of education shall have 17 required, imposed or permitted, the performance of duties by any of its 18 officers and employees, because of which it became necessary or expedi- 19 ent for any such officer or employee to act for such board of education, 20 or to act for or in cooperation with any other agency of government, 21 federal, state or municipal, then irrespective of the fact that the 22 authority to require, impose or permit the performance of such duties 23 may not have been specifically conferred upon said board of education by 24 provisions of this chapter, such board of education shall be liable for 25 and shall assume liability to the extent that it shall save harmless any 26 such officers or employees for damages arising out of the negligence of 27 any such officer or employee while actually engaged in the performance 28 of such required or permitted duties, provided the officer or employee 29 at the time was acting within the scope of such officer's duties or 30 employment. 31 § 2562-a. Presentation of claims against the board of education of 32 the city school district of the city of Staten Island to be pleaded. 1. 33 No action or special proceeding, for any cause whatever, shall be prose- 34 cuted or maintained against the board of education of the city school 35 district of the city of Staten Island, unless it shall appear by and as 36 an allegation in the complaint or necessary moving papers that at least 37 thirty days have elapsed since the demand, claim or claims upon which 38 such action or special proceeding is founded were presented to the said 39 board of education for adjustment, and that the officer or body having 40 the power to adjust or pay said claim has neglected or refused to make 41 an adjustment or payment thereof for thirty days after such presentment. 42 2. The said board of education may require any person presenting for 43 settlement an account or claim for any cause whatever against it to be 44 sworn before it or a committee thereof, or before the auditor, or before 45 any person designated by said board, touching such account or claim, and 46 when so sworn, to answer orally as to any facts relative to the justness 47 of such account or claim. A member of the board, the auditor, or any 48 other person designated as hereinbefore stated, shall have the power to 49 administer an oath to any person who shall give testimony to the just- 50 ness of such account or claim, and for the purpose of securing such 51 testimony may issue subpoenas for the attendance of witnesses. Wilful 52 false swearing before the said board of education, a committee thereof, 53 the auditor, or before any person designated as hereinbefore stated, is 54 perjury and punishable as such. 55 § 4-015. Section 2566 of the education law is amended by adding a new 56 subdivision 3-a to read as follows:

S. 8578 74 1 3-a. In the city of Staten Island, to exercise the administrative and 2 ministerial powers of the board of education. 3 § 4-016. The education law is amended by adding two new sections 4 2567-a and 2568-a to read as follows: 5 § 2567-a. Protection of rights exercised under licenses issued by a 6 board of education in the city of Staten Island. No person shall 7 forfeit any right given to such person under a license issued by such 8 board of education, pursuant to this chapter, because of absence while 9 in service in the armed forces of the United States or in the service of 10 the American Red Cross. Any person may at any time within six months 11 after such person's discharge from service in the armed forces of the 12 United States or the American Red Cross make application to the license 13 issuing authority by affidavit setting forth that such person has been 14 in service in the armed forces of the United States or the American Red 15 Cross and has been discharged from such service and that such person 16 desires the license theretofore issued to them to be reissued as of the 17 date of such application, and it shall be the duty of the licensing 18 authority to reinstate such license as of the date on which application 19 is made. 20 § 2568-a. Superintendent of schools authorized to require medical 21 examination of certain employees of the board of education of the city 22 school district of the city of Staten Island. The superintendent of 23 schools shall be empowered to require any person employed by the board 24 of education of the city school district of the city of Staten Island to 25 submit to a medical examination by a physician or school medical inspec- 26 tor of the board, in order to determine the mental or physical capacity 27 of such person to perform their duties, whenever it has been recommended 28 in a report in writing that such examination should be made. Such 29 report to the superintendent may be made only by a person under whose 30 supervision or direction the person recommended for such medical exam- 31 ination is employed. The person required to submit to such medical exam- 32 ination shall be entitled to be accompanied by a physician or other 33 person of their own choice. The findings upon such examination shall be 34 reported to the superintendent of schools and may be referred to and 35 considered for the evaluation of service of the person examined or for 36 disability retirement. 37 § 4-017. Subdivision 1 of section 2573 of the education law, as 38 amended by section 3 of subpart D of part EE of chapter 56 of the laws 39 of 2015, subparagraphs i and ii of paragraph (a) as amended by chapter 40 143 of the laws of 2024 and subparagraph ii of paragraph (b) as amended 41 by chapter 345 of the laws of 2019, is amended to read as follows: 42 1. (a) i. [~~Teachers~~] Except as already provided for in paragraph (c) 43 of this subdivision, teachers and all other members of the teaching 44 staff, appointed prior to July first, two thousand fifteen and author- 45 ized by section twenty-five hundred fifty-four of this article, shall be 46 appointed by the board of education, upon the recommendation of the 47 superintendent of schools, for a probationary period of three years, 48 except that in the case of a teacher who has rendered satisfactory 49 service as a regular substitute for a period of two years or as a 50 seasonally licensed per session teacher of swimming in day schools who 51 has served in that capacity for a period of two years and has been 52 appointed to teach the same subject in day schools on an annual salary, 53 the probationary period shall be limited to one year; provided, however, 54 that in the case of a teacher who has been appointed on tenure in anoth- 55 er school district within the state, the school district where currently 56 employed, or a board of cooperative educational services, and who was

S. 8578 75 1 not dismissed from such district or board as a result of charges brought 2 pursuant to subdivision one of section three thousand twenty-a of this 3 chapter, the probationary period shall not exceed two years; provided, 4 however, that in cities with a population of one million or more, a 5 teacher appointed under a newly created license, for teachers of reading 6 and of the emotionally handicapped, to a position which the teacher has 7 held for at least two years prior to such appointment while serving on 8 tenure in another license area who was not dismissed as a result of 9 charges brought pursuant to subdivision one of section three thousand 10 twenty-a of this chapter, the probationary period shall be one year. The 11 service of a person appointed to any of such positions may be discontin- 12 ued at any time during such probationary period, on the recommendation 13 of the superintendent of schools, by a majority vote of the board of 14 education. Each person who is not to be recommended for appointment on 15 tenure shall be so notified by the superintendent of schools in writing 16 not later than sixty days immediately preceding the expiration of such 17 person's probationary period. In city school districts having a popu- 18 lation of four hundred thousand or more, persons with licenses obtained 19 as a result of examinations announced subsequent to the twenty-second 20 day of May, nineteen hundred sixty-nine appointed upon conditions that 21 all announced requirements for the position be fulfilled within a speci- 22 fied period of time, shall not acquire tenure unless and until such 23 requirements have been completed within the time specified for the 24 fulfillment of such requirements, notwithstanding the expiration of any 25 probationary period. In all other city school districts subject to the 26 provisions of this article, failure to maintain certification as 27 required by this article and by the regulations of the commissioner 28 shall be cause for removal within the meaning of subdivision five of 29 this section. 30 ii. [~~Teachers~~] Except as otherwise provided for in paragraph (c) of 31 this subdivision, teachers and all other members of the teaching staff 32 appointed on or after July first, two thousand fifteen and authorized by 33 section twenty-five hundred fifty-four of this article, shall be 34 appointed by the board of education, upon the recommendation of the 35 superintendent of schools, for a probationary period of four years, 36 except that in the case of a teacher who has rendered satisfactory 37 service as a regular substitute for a period of up to two years, or such 38 teacher has rendered satisfactory service as a seasonally licensed per 39 session teacher of swimming in day schools who has served in that capac- 40 ity for a period of up to two years and has been appointed to teach the 41 same subject in day schools on an annual salary, the teacher shall be 42 appointed for a probationary period of a minimum of two years, depending 43 upon the length of the regular substitute service that shall shorten the 44 length of the probationary period; provided, however, that in the case 45 of a teacher who has been appointed on tenure in another school district 46 within the state, the school district where currently employed, or a 47 board of cooperative educational services, and who was not dismissed 48 from such district or board as a result of charges brought pursuant to 49 subdivision one of section three thousand twenty-a of this chapter, the 50 teacher shall be appointed for a probationary period of three years; 51 provided further, however, that in cities with a population of one 52 million or more, a teacher appointed under a newly created license, for 53 teachers of reading and of the emotionally handicapped, to a position 54 which the teacher has held for at least two years prior to such appoint- 55 ment while serving on tenure in another license area who was not 56 dismissed as a result of charges brought pursuant to subdivision one of

S. 8578 76 1 section three thousand twenty-a of this chapter, the teacher shall be 2 appointed for a probationary period of two years. The service of a 3 person appointed to any of such positions may be discontinued at any 4 time during such probationary period, on the recommendation of the 5 superintendent of schools, by a majority vote of the board of education. 6 Each person who is not to be recommended for appointment on tenure shall 7 be so notified by the superintendent of schools in writing not later 8 than sixty days immediately preceding the expiration of such person's 9 probationary period. In all city school districts subject to the 10 provisions of this article, failure to maintain certification as 11 required by this article and by the regulations of the commissioner 12 shall be cause for removal within the meaning of subdivision five of 13 this section. 14 (b) i. [~~Administrators~~] Except as otherwise provided for in paragraph 15 (c) of this subdivision, administrators, directors, supervisors, princi- 16 pals and all other members of the supervising staff, except executive 17 directors, associate, assistant, district and community superintendents 18 and examiners, appointed prior to July first, two thousand fifteen and 19 authorized by section twenty-five hundred fifty-four of this article, 20 shall be appointed by the board of education, upon the recommendation of 21 the superintendent or chancellor of schools, for a probationary period 22 of three years. The service of a person appointed to any of such posi- 23 tions may be discontinued at any time during the probationary period on 24 the recommendation of the superintendent of schools, by a majority vote 25 of the board of education. 26 ii. [~~Administrators~~] Except as otherwise provided for in paragraph (c) 27 of this subdivision, administrators, directors, supervisors, principals 28 and all other members of the supervising staff, except executive direc- 29 tors, associate, assistant, district and community superintendents and 30 examiners, appointed on or after July first, two thousand fifteen and 31 authorized by section twenty-five hundred fifty-four of this article, 32 shall be appointed by the board of education, upon the recommendation of 33 the superintendent or chancellor of schools, for a probationary period 34 of four years provided that such probationary period may be extended in 35 accordance with paragraph (b) of subdivision five of this section; 36 provided, however, that in the case of a principal, administrator, 37 supervisor, or other member of the supervising staff who has been 38 appointed on tenure pursuant to this chapter as an administrator within 39 an authorized administrative tenure area in another school district 40 within the state, the school district where currently employed, or a 41 board of cooperative educational services, and who was not dismissed 42 from such district or board as a result of charges brought pursuant to 43 subdivision one of section three thousand twenty-a or section three 44 thousand twenty-b of this chapter, the principal, administrator, super- 45 visor or other member of the supervising staff shall be appointed for a 46 probationary period of three years. The service of a person appointed to 47 any of such positions may be discontinued at any time during the proba- 48 tionary period on the recommendation of the superintendent of schools, 49 by a majority vote of the board of education. 50 (c) Notwithstanding the provisions of paragraphs (a) and (b) of this 51 subdivision, the superintendent of the city school district of the city 52 of Staten Island shall have the authority to appoint, with the approval 53 of the school board, principals and city wide administrators. Such 54 superintendent may appoint assistant principals and other clerical and 55 administrative staff without the approval of the school board. Such 56 assistant principals, clerical and administrative staff shall serve in

S. 8578 77 1 accordance with the provisions of paragraphs (a) and (b) of this subdi- 2 vision. 3 § 4-018. Section 2576 of the education law is amended by adding a new 4 subdivision 4-a to read as follows: 5 4-a. In the city of Staten Island such estimate shall be filed with 6 the officer authorized to receive other department estimates and the 7 same acted on by such officer and by the common council of such city in 8 the same manner and with the same effect as other department estimates. 9 The common council is also authorized, in its discretion, to include in 10 such budget a sum for any of the purposes enumerated in paragraph c of 11 subdivision one of this section, and any further amount for such 12 purposes as may be authorized by a tax election held in such city pursu- 13 ant to the provisions of this chapter. After the adoption of such budget 14 the common council shall cause the amount thereof to be included in the 15 tax and assessment roll of the city and the same shall be collected in 16 the same manner and at the same time as other taxes of the city are 17 collected, and placed to the credit of the board of education of the 18 city school district of such city. 19 § 4-019. Section 2579 of the education law is amended by adding a new 20 subdivision 4 to read as follows: 21 4. If the city of Staten Island shall issue obligations to defray, in 22 whole or in part, the expense of the construction, improvement and 23 equipment of school buildings or the purchase or acquisition of school 24 sites, the proceeds of the sale of such bonds shall be paid into the 25 treasury of the city and placed to the credit of the board of education 26 of the city school district of such city. As such obligations become 27 due the municipal authorities of the city shall include in the tax levy, 28 and assess upon the property of the city, the amount necessary to pay 29 such bonds and interest thereon. 30 § 4-020. Additional transitory provisions relating to the city school 31 district of the city of Staten Island. 1. The board of education of the 32 city school district of the city of Staten Island shall possess those 33 powers and duties as are authorized for a city school district pursuant 34 to article 52 of the education law, as amended by this act. In further- 35 ance of such powers and duties the board shall confer with the mayor, 36 the comptroller and the common council of the city of Staten Island and 37 the board of education of the preceding municipality for the purpose of 38 preparing for submission and implementation of a budget for the school 39 year commencing on the first of July in the second year next succeeding 40 the date on which this act shall have become a law and to take such 41 other actions as may be necessary and appropriate to provide for the 42 operation of the city school district of the city of Staten Island on 43 and after the date of establishment of the city of Staten Island. 44 2. Fiscal and regulatory authority pertaining to the public schools to 45 be contained within the city school district of the city of Staten 46 Island shall remain with the board of education of the city school 47 district of the preceding municipality until the date of establishment 48 of the city of Staten Island. 49 3. All employees of the board of education of the city school district 50 of the preceding municipality and such other employees of any other 51 public entity as may be transferred pursuant to the provisions of this 52 act shall retain all rights, privileges, benefits and salaries to which 53 the employee was previously entitled as an employee of the board of 54 education of the preceding municipality. Transfers of employment to the 55 city school district of the city of Staten Island shall be conducted in 56 the same manner as is provided by for the city of Staten Island as

S. 8578 78 1 provided in this act. Such employees shall not suffer a loss of employ- 2 ment by reason of such transfer within a period of three years from the 3 effective date of such transfer nor shall any such employees be subject 4 to any additional employment probationary period by reason of such 5 transfer. 6 4. During the transition period as defined in section 1-003 of this 7 act, the city school district of the city of Staten Island may retain 8 the services of a superintendent of schools, a chief financial officer 9 and such other staff as to which funding shall have been provided by the 10 mayor and the common council of the city of Staten Island. 11 5. All actions deemed necessary and proper to implement the provisions 12 of sections 4-001 through 4-019 of this act are hereby authorized. 13 § 5-001. Transfer of the college of Staten Island. 1. The legislature 14 finds that due to the establishment of the city of Staten Island, the 15 transfer of the college of Staten Island from the city university of New 16 York to the state university of New York is a public purpose. Such 17 transfer shall not affect the title to the real property of the college 18 of Staten Island which shall continue to be held by the state of New 19 York, except that notwithstanding the provisions of paragraph b of 20 subdivision 1 of section 6219 of the education law if such real property 21 ceases to be used for college purposes, title to such property shall 22 revert to the city of Staten Island as successor in interest to the 23 prior municipal government of the geographical area of Staten Island. 24 The college of Staten Island is hereby transferred to the state univer- 25 sity of New York. Such transfers shall include all furnishings, equip- 26 ment, records and all other property normally allocated to the college 27 of Staten Island by the city university of New York. 28 2. The college of Staten Island is hereby transferred from the city 29 university of New York to the state university of New York. The college 30 of Staten Island shall continue to offer a full range of baccalaureate 31 degree programs and associate degree programs, selected masters degree 32 programs and provide faculty participation in research and doctoral 33 programs at the graduate center of the city university of New York. The 34 city of Staten Island shall serve as local sponsor for the two year 35 component of the college of Staten Island and such component shall be 36 subject to the provisions of section 6304 of the education law. Such two 37 year component shall be a part of the state university of New York and 38 shall not be governed by a community college board of trustees. 39 3. (a) Whenever the term "city university of New York" is referred to 40 or designated in any law, general, special or local, contract, lease, 41 judgment, decision or document pertaining to the functions, powers and 42 duties relating to the college of Staten Island hereby continued in, 43 transferred and assigned to, or devolved upon, the state university of 44 New York, such reference or designation shall be deemed to refer to and 45 include the state university of New York, so far as such law, contract, 46 lease, judgment, decision or document pertains to matters which are 47 within its jurisdiction by reason of the redesignation, continuation, 48 transfer, assignment and devolution of functions, powers and duties made 49 by this act. 50 (b) All contracts, leases and other agreements entered into by the 51 city university of New York relating to the college of Staten Island 52 before the effective date of this section shall be conducted and 53 completed by the state university of New York in the same manner and 54 under the same terms and conditions and with the same effect as if the 55 same had been conducted and completed by the state university of New 56 York. In addition, any contracts, leases and other agreements entered

S. 8578 79 1 into by the state university of New York prior to the effective date of 2 this section shall remain in full force and effect and shall be 3 conducted and completed by the state university of New York. 4 (c) All rights, title and interest in personal property used for 5 educational or administrative purposes of the college of Staten Island 6 of the city university of New York vested in the city university of New 7 York on the effective date of this section are hereby transferred, 8 assigned and devolved upon the state university of New York. 9 (d) No existing right or remedy of any character shall be lost, 10 impaired or affected, nor shall any new right or remedy of any character 11 accrue to or for the benefit of any person by reason of the transfer of 12 the college of Staten Island pursuant to the provisions of this act. 13 (e) No action or proceeding based upon a cause of action which arose 14 prior to the effective date of this section brought by or against the 15 board of trustees of the city university of New York, the city universi- 16 ty construction fund, the board of trustees of the state university of 17 New York or the college of Staten Island shall be affected by any 18 provision of this act. 19 (f) Any lease entered into by the city university of New York for the 20 purposes of the college of Staten Island before the effective date of 21 this section is hereby transferred, assigned and devolved upon the state 22 university of New York, notwithstanding any provision that may be 23 contained therein providing for the nonassignability of such lease and 24 any such provision shall be deemed to be void as against the public 25 policy of the state and of no force and effect. 26 4. A council for the college of Staten Island is hereby established 27 pursuant to section 356 of the education law. It shall consist of ten 28 members, nine of whom shall be appointed by the governor and one of whom 29 shall be elected by and from among the students of the institution. Such 30 voting members shall be subject to every provision of any general, 31 special or local law, ordinance, charter, code, rule or regulation 32 applying to the voting members of such board with respect to the 33 discharge of their duties including, but not limited to those provisions 34 setting forth codes of ethics, disclosure requirements and prohibiting 35 business and professional activities. The election of the student member 36 shall be conducted in accordance with rules and regulations promulgated 37 by the respective representative campus student association in accord- 38 ance with guidelines established by the state university trustees. One 39 member shall be designated by the governor as chairman. Vacancies shall 40 be filled for the unexpired term in the same manner as original 41 selections. The term of office for each council member shall be seven 42 years. The term of office for the student member shall be one year. In 43 the event the student member ceases to be a student at the institution 44 such member shall be required to resign. Members appointed by the gover- 45 nor may be removed by the governor. Members elected by the students of 46 the institution may be removed by such students in accordance with rules 47 and regulations promulgated by the respective representative campus 48 student association in accordance with guidelines promulgated by the 49 state university trustees. Members of such council shall receive no 50 compensation for their services but shall be reimbursed for the expenses 51 actually and necessarily incurred by them in the performance of their 52 duties hereunder. 53 5. All employees of the college of Staten Island of the city universi- 54 ty of New York shall be transferred to employment in the state universi- 55 ty of New York and shall retain all rights, privileges, benefits and

S. 8578 80 1 salaries to which the employee was previously entitled as an employee of 2 the city university of New York. 3 Employees of the college of Staten Island of the city university of 4 New York transferred to employment in the state university of New York 5 pursuant to the provisions of this act shall not be involuntarily 6 assigned to work outside the geographical boundaries of the city of 7 Staten Island nor shall any such employees suffer a loss of employment 8 by reason of such transfer within a period of three years from the 9 effective date of such transfer nor shall any such employees be subject 10 to any additional employment probationary period by reason of their 11 transfer. 12 Employees transferred from the college of Staten Island of the city 13 university of New York to employment in the state university of New 14 York except for those designated managerial or confidential shall be 15 included in employer - employee negotiating units comparable to existing 16 units in the city university of the city of New York. With respect to 17 employees to be placed in such negotiating units, the public employee 18 organization recognized or certified to represent the employees in 19 comparable city university of the city of New York negotiating units 20 shall be recognized as the unit representative. 21 All rights, privileges and benefits provided by collectively bargained 22 agreements to employees of the city university of the city of New York 23 shall be continued for such employees transferred, reappointed or other- 24 wise employed until such time as successor collective bargaining agree- 25 ments are negotiated. 26 The state university of New York shall consult and bargain on all 27 terms and conditions of employment with the appropriate public employee 28 organization with respect to the establishment of any new titles which 29 are similar to or reasonably related to titles already represented by 30 such public employee organizations in the city university of the city of 31 New York. 32 Any such titles for which terms and conditions are bargained pursuant 33 to this subdivision shall be deemed to be successor titles within the 34 meaning of applicable law. So long as the responsibilities of employees 35 in these titles are reasonably related to the responsibilities of 36 employees currently represented by public employee organizations, such 37 titles shall be accredited or placed in a negotiating unit represented 38 by such public employee organizations. 39 If a dispute arises, the office of collective bargaining shall deter- 40 mine which public employee organization is appropriate to represent 41 transferees, other hires, or employees in a new title on the basis of 42 the title's community of interest with titles in the state university of 43 New York and the city university of the city of New York. 44 No existing right or remedy of any character shall be lost or impaired 45 or affected by reason of the adoption of this charter. 46 6. On and after the first of July in the second year next succeeding 47 the date on which this act shall have become a law, officers and employ- 48 ees who become employees of the state pursuant to this act shall become 49 members of the New York state employees' retirement system to the extent 50 permitted or required by the provisions of the retirement and social 51 security law, except that any employee who is a member of the New York 52 city employees' retirement system may elect to continue membership in 53 the New York city employees' retirement system. Any election pursuant to 54 this section shall be made no later than the one hundred twentieth day 55 after the effective date of this section, by filing a written notice 56 thereof with the administrative head of the New York state employees'

S. 8578 81 1 retirement system and the New York city employees' retirement system 2 and, once made and filed, shall be irrevocable. Upon the retirement of 3 an employee who has made such an election, the calculation of final 4 average salary by the New York city employees' retirement system shall 5 be performed as if the salary earned as a state employee on and after 6 such effective date were earned in New York city employment. In the case 7 of an employee who becomes a member of the New York state employees' 8 retirement system pursuant to this section, the New York city employees' 9 retirement system shall make a transfer of reserves, contributions and 10 credits to the New York state employees' retirement system, in the 11 manner required by section 43 of the retirement and social security law. 12 The comptroller of the city of New York shall certify to the state 13 administrator the amount of money required to be paid by the state of 14 New York for pension costs resulting from elections made pursuant to 15 this section. The comptroller of the state of New York shall pay to the 16 New York city employees' retirement system, upon approval by the state 17 administrator, the amounts so certified by the comptroller of the city 18 of New York. The comptroller of the city of New York shall also certify 19 to the state administrator the amount of money required to be contrib- 20 uted by each of such employees. The comptroller of the state of New 21 York shall be authorized to withhold the contributions of such employees 22 and pay that amount to the New York city employees' retirement system. 23 The amount so certified shall be the same as the amounts required to be 24 contributed for similarly situated city employees by the city of New 25 York and by employees of the city of New York. 26 § 5-002. Subdivision 3 of section 352 of the education law, as amended 27 by chapter 13 of the laws of 2021, is amended to read as follows: 28 3. The state university shall consist of the four university centers 29 at Albany, Binghamton, Buffalo and Stony Brook, the designated colleges 30 of arts and sciences at Brockport, Buffalo, Cortland, Fredonia, Geneseo, 31 New Paltz, Old Westbury, Oneonta, Oswego, Plattsburgh, Potsdam [~~and~~], 32 Purchase and Staten Island, empire state college, the agricultural and 33 technical colleges at Alfred, Canton, Cobleskill, Delhi, Farmingdale and 34 Morrisville, downstate medical center, upstate medical center, the 35 college of optometry, the college of environmental science and forestry, 36 maritime college, the college of technology at Utica/Rome, the statutory 37 or contract colleges at Cornell university and Alfred university, and 38 such additional universities, colleges and other institutions, facili- 39 ties and research centers as have been or hereafter may be acquired, 40 established, operated or contracted to be operated for the state by the 41 state university trustees. 42 § 5-003. Paragraphs (f) and (g) of subdivision 2 and paragraph (d) of 43 subdivision 3 of section 6204 of the education law, paragraph (f) of 44 subdivision 2 as amended by chapter 306 and paragraph (g) of subdivision 45 2 as added by chapter 305 of the laws of 1979, and paragraph (d) of 46 subdivision 3 as amended by chapter 98 of the laws of 2010, are amended 47 to read as follows: 48 (f) The five trustees appointed by the mayor shall include at least 49 one resident of each of the [~~five~~] boroughs of the city of New York. 50 (g) The trustees appointed by the governor shall include at least one 51 resident of each of the [~~five~~] boroughs of the city of New York. 52 (d) (i) The board of trustees shall hold at least one public hearing 53 each year in each of the [~~five~~] boroughs of the city of New York. The 54 purpose of such hearing shall be to receive testimony and statements 55 from concerned individuals about university issues.

S. 8578 82 1 (ii) The board of trustees shall fix the time, place, duration and 2 format of each hearing. 3 (iii) At least thirty days notice of the hearing shall be given by the 4 chairperson of the board of trustees to all of the trustees, to all 5 presidents of educational units, to the chair of faculty-senate bodies 6 of educational units, to all student government presidents of educa- 7 tional units, to the borough president, the members of the city council, 8 the members of the board of estimate, the local community boards of the 9 borough where the hearing is to be held and to the media. The notice 10 shall contain the time, place and date of the public hearing. Such 11 information shall be made electronically available on the city universi- 12 ty of New York website. Any such meeting of the board of trustees shall 13 be conducted in accordance with article seven of the public officers 14 law. 15 (iv) At least three trustees shall attend each hearing. 16 § 6-001. The judiciary law is amended by adding a new article 5-C to 17 read as follows: 18 ARTICLE 5-C 19 INTERIM COURT STRUCTURE FOR THE CITY OF STATEN ISLAND 20 Section 178. Declaration of legislative findings and intent. 21 178-a. Continuation of court proceedings. 22 178-b. Judicial transition. 23 178-c. Judiciary jurisdiction. 24 178-d. Judiciary; family court. 25 178-e. Judiciary; criminal court. 26 178-f. Judiciary; civil court. 27 178-g. Judicial transition; structure. 28 178-h. Unified court system; services. 29 178-i. Judicial transition services. 30 178-j. Effect of existing collective bargaining agreements. 31 § 178. Declaration of legislative findings and intent. The interim 32 court structure established for the city of Staten Island by this arti- 33 cle is being enacted in the exercise of the legislature's constitutional 34 authority to provide for the creation and organization of units of local 35 government. The legislature finds that it is not possible to create, 36 fund and staff a new and jurisdictionally distinct court structure for 37 the city of Staten Island which would be fully operational on the effec- 38 tive date of such city's incorporation. The legislature also finds that 39 the creation of a jurisdictionally distinct court structure for the city 40 of Staten Island would likely disrupt the orderly administration of 41 justice in such city and the county of Richmond, unnecessarily inconven- 42 ience and confuse litigants, and increase significantly the cost of 43 conducting litigation within such city and county. The purpose of this 44 article is to prevent an interregnum in the operations of the unified 45 court system in connection with the incorporation of the city of Staten 46 Island and its organization as a functional unit of local government. By 47 establishing an interim court structure for such city, the legislature 48 intends to relieve taxpayers and litigants of the expense, inconven- 49 ience, confusion, and delay that would be occasioned by the creation of 50 a new court structure for such city. By preserving the existing trial 51 court structure in the county of Richmond during the period of govern- 52 mental reorganization following the incorporation of the city of Staten 53 Island, the legislature intends that all inhabitants of such county and 54 city will continue to possess the same rights and access to the unified 55 court system that they possessed immediately prior to the incorporation 56 of such city.

S. 8578 83 1 § 178-a. Continuation of court proceedings. The incorporation of the 2 city of Staten Island shall not alter the jurisdiction of any court 3 existing in the county of Richmond immediately prior to the effective 4 date of such city's incorporation. All courts in such county are contin- 5 ued, and no civil or criminal appeal, action or proceeding pending 6 before any court or any judge or justice on the effective date of incor- 7 poration shall abate or be impaired; and every such appeal, action or 8 proceeding shall be continued in the court in which such appeal, action 9 or proceeding was pending immediately prior to such effective date. 10 § 178-b. Judicial transition. There is established a judicial transi- 11 tion period for the city of Staten Island. Such period shall commence 12 on the effective date of such city's incorporation and terminate on 13 December thirty-first in the fifth year following such incorporation or 14 until the provisions of this article are specifically superseded by 15 state law. 16 § 178-c. Judiciary jurisdiction. During the judicial transition peri- 17 od: 18 (1) the county of Richmond shall be deemed to be a county within the 19 city of New York for all purposes of article six of the state constitu- 20 tion; 21 (2) the county of Richmond shall be deemed to be a county within the 22 city of New York for the purposes of section five hundred two of this 23 chapter; 24 (3) the city of Staten Island shall be deemed to be a part of the city 25 of New York for the purposes of section one hundred fifty-five and arti- 26 cles two-A and two-B of title two of the vehicle and traffic law; and 27 (4) the judge of the surrogate's court in the county of Richmond shall 28 be deemed to be a judge of a surrogate's court within the city of New 29 York for the purposes of subdivision c of section twelve of article six 30 of the state constitution. 31 § 178-d. Judiciary; family court. Notwithstanding section one hundred 32 twenty-one of the family court act, the county of Richmond shall be 33 deemed to be a county within the city of New York during the judicial 34 transition period, and there shall be no fewer than three judges of such 35 court who shall be residents of the county of Richmond. A vacancy occur- 36 ring in the office of any such judge during the judicial transition 37 period shall be filled by the mayor of the city of New York upon the 38 recommendation of the mayor of the city of Staten Island consistent with 39 the provisions of section two hundred sixteen-a of the family court act. 40 § 178-e. Judiciary; criminal court. Notwithstanding the provisions of 41 sections twenty and twenty-two of the New York city criminal court act, 42 the city of Staten Island shall be deemed to be part of the city of New 43 York during the judicial transition period, and there shall be no fewer 44 than three judges of such court who shall be residents of the city of 45 Staten Island. A vacancy occurring in the office of such judge during 46 the judicial transition period shall be filled by the mayor of the city 47 of New York upon the recommendation of the mayor of the city of Staten 48 Island consistent with the provisions of section twenty-two of the New 49 York city criminal court act. 50 § 178-f. Judiciary; civil court. Notwithstanding the provisions of 51 section one hundred two-a of the New York city civil court act, the city 52 of Staten Island shall be deemed to be part of the city of New York 53 during the judicial transition period, and there shall be no fewer than 54 three judges of such court who shall be residents of the city of Staten 55 Island. A vacancy occurring in the office of such judge otherwise than 56 by expiration of term during the judicial transition period shall be

S. 8578 84 1 filled by the mayor of the city of New York upon the recommendation of 2 the mayor of the city of Staten Island consistent with the provisions of 3 section one hundred two-a of the New York city civil court act. 4 § 178-g. Judicial transition; structure. The mayor and the common 5 council of the city of Staten Island, in consultation with the chief 6 administrator of the courts, shall develop a plan for an appropriate 7 court structure for the city of Staten Island following the judicial 8 transition period. Such plan shall include recommendations for the 9 jurisdiction of each court, the number of judges needed, a personnel 10 structure for nonjudicial officers and employees, necessary physical 11 facilities, and a fiscal analysis of each component of the plan. Such 12 plan shall be submitted to the governor, the legislature and to the 13 chief judge of the state, no later than three years following commence- 14 ment of the judicial transition period. 15 § 178-h. Unified court system; services. The chief administrator of 16 the courts is authorized to do all things necessary to continue the 17 efficient operation of the unified court system within the county of 18 Richmond and the city of Staten Island during and after the judicial 19 transition period. 20 § 178-i. Judicial transition services. During the judicial transition 21 period, the mayor and the comptroller of the city of Staten Island and 22 the mayor and the comptroller of the city of New York are authorized to 23 enter into agreements relating to the provision of municipal services 24 for the courts within the city of Staten Island. Such municipal services 25 may include, but shall not be limited to, correctional services. 26 § 178-j. Effect of existing collective bargaining agreements. 27 Notwithstanding any other provision of law: 28 (1) The provisions of this article shall not alter any existing 29 collective negotiating unit of nonjudicial employees or any provision of 30 a collective negotiating agreement in effect on the effective date of 31 this article. 32 (2) To the extent permitted by the state constitution, where a judi- 33 cial or nonjudicial officer or employee of the unified court system is 34 required as a condition of their continued employment to reside in the 35 city of New York and, on the effective date of this article, they reside 36 in the county of Richmond, such officer or employee shall be deemed to 37 reside in the city of New York for so long as they remain in their posi- 38 tion, provided such officer or employee continues to reside in the coun- 39 ty or in the city of New York. 40 (3) The nonjudicial personnel of the courts affected by this article 41 in office on the effective date of this article shall, to the extent 42 practicable, be continued without diminution of salaries and with the 43 same status and rights in the courts continued in the county of Rich- 44 mond. 45 § 7-001. Section 31 of the public housing law, as amended by chapter 46 829 of the laws of 1947, is amended to read as follows: 47 § 31. Scope of authority's jurisdiction. The territorial jurisdiction 48 of an authority established for a city or village shall be coterminous 49 with the territorial limits of such city or village, and the territorial 50 jurisdiction of an authority established for a town shall include all 51 such town, except that such territorial jurisdiction shall not include 52 any territory that lies within the boundaries of any village, whether 53 such village has or has not established an authority. The members of 54 such town authority shall if they consent and when authorized by resol- 55 utions of the town board and the village board, act as the authority in

S. 8578 85 1 and for said village, the same as if it had been created especially for 2 said village. 3 Notwithstanding the provisions of this section, the New York city 4 housing authority, the creation and establishment of which was validated 5 pursuant to section four hundred of this chapter, shall continue to have 6 territorial jurisdiction for the five counties which had constituted 7 parts of the city of New York prior to the establishment of the city of 8 Staten Island. 9 § 7-002. Subdivision 3 of section 402 of the public housing law, as 10 added by chapter 96 of the laws of 2013, is amended to read as follows: 11 3. a. The authority shall consist of seven members appointed by the 12 mayor, one of whom shall be designated by the mayor as [~~chairman~~] chair- 13 person removable at [~~his or her~~] the mayor's pleasure. The term of 14 office of each member other than the [~~chairman~~] chairperson shall be 15 three years, provided, however, that the initial appointments of the six 16 members other than the [~~chairman~~] chairperson shall be as follows: two 17 shall be appointed for one-year terms, two shall be appointed for two- 18 year terms, and two shall be appointed for three-year terms. The mayor 19 shall file with the commissioner of housing a certificate of appointment 20 of the [~~chairman~~] chairperson and of each member. Any member other than 21 the [~~chairman~~] chairperson may be removed by the mayor upon filing in 22 the office of the commissioner of citywide administrative services and 23 serving upon the member the reasons therefor. Such document setting 24 forth the reasons shall be made available to the general public, which 25 shall include but not be limited to publishing the reasons on the New 26 York city housing authority's website. Three of such members shall be a 27 tenant of record or an authorized member of the tenant household, in 28 good standing, residing in one of the federal projects owned or operated 29 by the authority, provided, however, that for the initial appointments 30 of the three such members, one shall be among the members initially 31 appointed for one-year terms, one shall be among the members initially 32 appointed for two-year terms, and one shall be among the members 33 initially appointed for three-year terms. A vacancy in the office of a 34 member other than the [~~chairman~~] chairperson occurring otherwise than by 35 expiration of term shall be filled for the unexpired term. Further, any 36 vacancy in the office of a tenant member shall only be filled by the 37 appointment of an eligible tenant member, and such appointment shall be 38 made within ninety days of such vacancy. 39 b. Notwithstanding paragraph a of this subdivision, upon the estab- 40 lishment of a city of Staten Island and for so long as the New York city 41 housing authority shall have territorial jurisdiction in the city of 42 Staten Island, such authority shall consist of eight members, the eighth 43 of whom shall be appointed by the mayor of Staten Island and shall serve 44 for a five-year term. The mayor of the city of Staten Island shall file 45 with the commissioner of housing and the chairperson of the New York 46 city housing authority a certificate of appointment of such member. Such 47 member may be removed by the mayor of Staten Island for cause after a 48 public hearing. Such member may be of any political party. A vacancy in 49 the office of such member occurring other than by expiration of a term 50 shall be filled for the unexpired term. 51 § 7-003. Section 455 of the education law, as amended by chapter 724 52 of the laws of 1976, is amended to read as follows: 53 § 455. Relationship with the board of education and the city of New 54 York. 1. In order most effectively to carry out its corporate purposes, 55 the fund shall cooperate with the director of management and budget and 56 the board of education of the city of New York in matters relating to

S. 8578 86 1 land acquisition and capital planning for school buildings and facili- 2 ties. During the course of construction, reconstruction, rehabilitation 3 and improvement of combined occupancy structures the fund shall consult 4 with personnel of such board as the work progresses in matters relating 5 to space requirements, site plans, architectural concept, and substan- 6 tial changes in the plans and specifications therefor, and in matters 7 relating to the original furnishings, equipment, machinery and apparatus 8 needed to furnish and equip the school portion of such buildings and 9 structures, upon the completion of work. The board, on its part, shall 10 perform such functions and services for the fund as may be requested and 11 the fund shall pay to the board, from any monies of the fund available 12 for such purpose, the reasonable cost of such functions and services. 13 2. Notwithstanding subdivision one of this section, upon the estab- 14 lishment of a city of Staten Island, with respect to any fund activities 15 to take place within such city of Staten Island, the fund shall cooper- 16 ate with the mayor and comptroller of such city of Staten Island and the 17 board of education of the city school district of the city of Staten 18 Island in matters relating to land acquisition and capital planning for 19 school buildings and facilities to the same extent as with the respec- 20 tive officials of the city of New York. 21 § 7-004. Paragraph (c) of subdivision 1 of section 462 of the educa- 22 tion law, as separately amended by chapters 724 and 729 of the laws of 23 1976, is amended to read as follows: 24 (c) (i) To assure the continued operation and solvency of the capital 25 reserve fund for the carrying out of the public purposes of this arti- 26 cle, provision is made in paragraph (a) of this subdivision for the 27 accumulation in the capital reserve fund of an amount equal to the maxi- 28 mum amount of principal and interest maturing and becoming due and sink- 29 ing fund payments required to be made in any succeeding fiscal year on 30 all bonds of the fund then outstanding secured by the capital reserve 31 fund. In order further to assure such maintenance of the capital 32 reserve fund, the board of education shall annually request from the 33 city of New York and pay over to the fund, for deposit in the capital 34 reserve fund, such sum, if any, as shall be certified by the [~~chairman~~] 35 chairperson of the fund to the board, the mayor and the director of 36 management and budget of the city of New York as necessary to restore 37 the capital reserve fund to an amount equal to the maximum amount of 38 principal and interest maturing and becoming due and sinking fund 39 payments required to be made in the next succeeding fiscal year on the 40 bonds of the fund then outstanding secured by the capital reserve fund; 41 provided, however, that such sum shall have been first appropriated by 42 the city to the board or shall otherwise have been made lawfully avail- 43 able to the board for such purpose. The [~~chairman~~] chairperson of the 44 fund shall annually, not later than the fifteenth day of February in 45 each year, make and deliver to the board, the mayor and the director of 46 management and budget [~~his~~] their certificate stating the amount, if 47 any, required to restore the capital reserve fund to the amount afore- 48 said and the amount so stated, if any, shall be paid to the fund by the 49 board during the then current fiscal year of the fund. In the event of 50 the failure or inability of the board to pay over the stated amount to 51 the fund on or before August first of the same year, the [~~chairman~~] 52 chairperson of the fund shall forthwith make and deliver to the comp- 53 troller of the state of New York and the mayor and comptroller of the 54 city of Staten Island a further certificate restating the amount so 55 required and, after the comptroller of the state of New York shall have 56 given written notice to the commissioner of education, the mayor and

S. 8578 87 1 director of management and budget and the mayor and comptroller of the 2 city of Staten Island, such amount shall be paid over to the fund by the 3 comptroller of the state of New York out of the next payment of state 4 aid apportioned, first, to the city of New York on behalf of the city 5 school district of the city of New York for the support of common 6 schools or such other aid or assistance payable in support of common 7 schools as shall supersede or supplement such state aid for the support 8 of common schools, including federal moneys apportioned by the state to 9 the city of New York on behalf of the city school district for the 10 support of common schools and, thereafter, if such amounts are insuffi- 11 cient, from such similar aid payable to the city of Staten Island. Any 12 amount so paid over to the fund shall be deducted from the corresponding 13 apportionment of state education aid or other aid or assistance for 14 education otherwise credited to the board of education for its purposes 15 and shall not obligate the state to make or entitle the city or the 16 board of education or city of Staten Island to receive any additional or 17 increased apportionment or payment of state aid for school purposes. 18 (ii) Notwithstanding subparagraph (i) of this paragraph, on or after 19 the first of January next succeeding the date on which this subparagraph 20 shall have become a law, the fund shall not issue any bonds, notes or 21 other obligations secured by a capital reserve fund into which state aid 22 or other aid otherwise payable to the city of Staten Island is to be 23 deposited pursuant to this paragraph, provided, however, the fund may 24 issue refunding bonds to pay bonds previously issued, which refunding 25 bonds may be so secured if the fund gives reasonable adequate notice of 26 its intention to issue such refunding bonds to the mayor of the city of 27 Staten Island and the comptroller of the city of Staten Island and both 28 such officials are given a reasonable opportunity to participate at the 29 meeting or meetings of the board of the fund at which action is taken to 30 issue such refunding bonds. 31 § 7-005. Paragraph (c) of subdivision 3 of section 462 of the educa- 32 tion law, as amended by chapter 474 of the laws of 1996, is amended to 33 read as follows: 34 (c) (i) To assure the continued operation and solvency of the fund for 35 the carrying out of the public purposes of this article, provision is 36 made in paragraph (a) of this subdivision for the accumulation in a debt 37 service reserve fund of an amount equal to the debt service reserve fund 38 requirement on all bonds of the fund then outstanding secured by a debt 39 service or debt service reserve fund. In order further to assure such 40 maintenance of a debt service reserve fund, the board of education shall 41 annually request from the city of New York and pay over to the fund 42 after making the payment required by paragraph (c) of subdivision one of 43 this section for deposit in a debt service reserve fund, such sum, if 44 any, as shall be certified by the [~~chairman~~] chairperson of the fund to 45 the board, the mayor and the director of the budget of the city of New 46 York as necessary to restore such debt service reserve fund to an amount 47 equal to the debt service reserve fund requirement for the bonds of the 48 fund secured by such debt service reserve fund; provided, however, that 49 such sum shall have been first appropriated by the city to the board or 50 shall otherwise have been made lawfully available to the board for such 51 purpose. The [~~chairman~~] chairperson of the fund shall annually, not 52 later than the fifteenth day of February in each year, make and deliver 53 to the board, the mayor and the director of the budget [~~his~~] their 54 certificate stating the amount, if any, required to restore a debt 55 service reserve fund to the amount aforesaid and the amount so stated 56 after making the payment required by paragraph (c) of subdivision one of

S. 8578 88 1 this section if any, shall be paid to the fund by the board during the 2 then current fiscal year of the fund. In the event of the failure or 3 inability of the board to pay over the stated amount to the fund on or 4 before August first of the same year, the [~~chairman~~] chairperson of the 5 fund shall forthwith make and deliver to the comptroller of the state of 6 New York and the mayor and comptroller of the city of Staten Island a 7 further certificate restating the amount so required and, after the 8 comptroller of the state of New York shall have given written notice to 9 the commissioner, the mayor and director of the budget and the mayor and 10 comptroller of the city of Staten Island, such amount after making the 11 payment required by paragraph (c) of subdivision one of this section 12 shall be paid over to the fund by the comptroller of the state of New 13 York out of the next payment of state aid apportioned, first, to the 14 city of New York on behalf of the city school district of the city of 15 New York for the support of common schools or such other aid or assist- 16 ance payable in support of common schools as shall supercede or supple- 17 ment such state aid for the support of common schools, including federal 18 moneys apportioned by the state to the city of New York on behalf of the 19 city school district for the support of common schools and, thereafter, 20 if such amounts are insufficient, from such similar aid payable to the 21 city of Staten Island. Any amount so paid over to the fund under para- 22 graph (c) of subdivision one of this section shall be deducted from the 23 corresponding apportionment of state education aid or other aid or 24 assistance for education otherwise credited to the board of education or 25 the city of Staten Island for its purposes and shall not obligate the 26 state to make or entitle the city or the board of education or the city 27 of Staten Island to receive any additional or increased apportionment or 28 payment of state aid for school purposes. 29 (ii) Notwithstanding subparagraph (i) of this paragraph, on or after 30 the first of January next succeeding the date on which this subparagraph 31 shall have become a law, the fund shall not issue any bonds, notes or 32 other obligations secured by a debt service reserve fund into which 33 state aid or other aid otherwise payable to the city of Staten Island is 34 to be deposited pursuant to this paragraph, provided, however, the fund 35 may issue refunding bonds to pay bonds previously issued, which refund- 36 ing bonds may be so secured if the fund gives reasonable adequate notice 37 of its intention to issue such refunding bonds to the mayor of the city 38 of Staten Island and the comptroller of the city of Staten Island and 39 both such officials are given a reasonable opportunity to participate at 40 the meeting or meetings of the board of the fund at which action is 41 taken to issue such refunding bonds. 42 § 7-006. Subdivision 1 of section 1045-c of the public authorities 43 law, as added by chapter 513 of the laws of 1984, is amended to read as 44 follows: 45 1. A corporation known as the New York city municipal water finance 46 authority is hereby created for public purposes and charged with the 47 duties and having the powers provided in this title. The authority shall 48 be a body corporate and politic constituting a public benefit corpo- 49 ration. It shall be administered by a board of directors consisting of 50 [~~seven~~] eight members as follows: the commissioner of environmental 51 protection of the city, the state commissioner of environmental conser- 52 vation, the director of management and budget of the city, the commis- 53 sioner of finance of the city, two public members to be appointed by the 54 mayor, one public member to be appointed by the mayor of Staten Island 55 and one public member to be appointed by the governor. One public 56 member appointed by the mayor shall serve for a term of one year, one

S. 8578 89 1 public member appointed by the mayor shall serve for a term of two 2 years, and the public [~~member~~] members appointed by the governor and 3 mayor of Staten Island shall serve for a term of two years from January 4 first next succeeding the date of their appointment. Their successors 5 shall serve for terms of two years each. Members shall continue in 6 office until their successors have been appointed and qualified. The 7 mayor, mayor of Staten Island or the governor shall fill any vacancy 8 which may occur by reason of death, resignation or otherwise in a manner 9 consistent with the original appointment. A public member may be 10 removed by the mayor, mayor of Staten Island, or the governor, [~~whichev-~~ 11 er] whoever appointed [~~him~~] such member, for cause, but not without an 12 opportunity to be heard in person or by counsel, in [~~his~~] such member's 13 defense, upon not less than ten days' notice. The mayor shall select a 14 [~~chairman~~] chairperson from among the directors appointed by [~~him~~] such 15 mayor who shall serve in such capacity at [~~his~~] their pleasure. The 16 [~~chairman~~] chairperson shall preside over all meetings of the board of 17 directors and shall have such other duties as may be prescribed by the 18 board. 19 § 7-007. Subdivision 2 of section 1045-f of the public authorities 20 law, as added by chapter 513 of the laws of 1984, is amended to read as 21 follows: 22 2. The water board shall consist of seven members, six of which shall 23 be appointed by the mayor and, the seventh of which shall be appointed 24 by the mayor of Staten Island. The mayor of Staten Island shall fill 25 the earlier of the first expiration of a term or the first vacancy 26 occurring after the date of establishment of the city of Staten Island 27 and any successor thereto. Terms of office of the members shall be two 28 years except that the terms of four of the board members first appointed 29 shall be one year. At least one member shall have experience in the 30 science of water resource development. No member shall be a director of 31 the authority. The mayor shall appoint a [~~chairman~~] chairperson from 32 among the members of the board. All members shall continue to hold 33 office until their successors are appointed and qualified. Vacancies 34 shall be filled in the manner provided for original appointments. Vacan- 35 cies, occurring otherwise than by expiration of term of office, shall be 36 filled in the same manner as original appointments for the unexpired 37 terms. 38 § 7-008. Subdivision 5 of section 1045-f of the public authorities 39 law, as added by chapter 513 of the laws of 1984, is amended to read as 40 follows: 41 5. The appointing mayor may remove any member for inefficiency, 42 neglect of duty or misconduct in office after giving such member a copy 43 of the charges against such member and an opportunity to be heard and 44 defended, in person or by counsel, upon not less than ten days' notice. 45 If any member shall be so removed, the appointing mayor shall file in 46 the office of the clerk of the city a complete statement of charges 47 against such member, and the appointing mayor's findings thereon, 48 together with a complete record of the proceedings. 49 § 7-009. Paragraphs e and f of subdivision 1 of section 656 of the 50 private housing finance law, as amended by chapter 174 of the laws of 51 1992, are amended to read as follows: 52 e. (i) To assure the continued operation and solvency of the corpo- 53 ration for the carrying out of its corporate purposes, provision is made 54 in paragraph a of this subdivision for the accumulation in each capital 55 reserve fund of an amount equal to the maximum capital reserve fund 56 requirement. In order further to assure such maintenance of each capital

S. 8578 90 1 reserve fund, there shall be paid by the city to the corporation for 2 deposit in each capital reserve fund on or before the first day of 3 April, in each year, such amount, if any, needed for the purpose of 4 restoring each such capital reserve fund to the maximum capital reserve 5 fund requirement for such fund, as shall be certified by the chairperson 6 of the corporation to the mayor and the director of management and budg- 7 et on or before the first day of December next preceding; provided that 8 any such amount shall have been first appropriated by or on behalf of 9 the city for such purpose or shall have been otherwise made available 10 from the proceeds of notes or bonds of the city authorized and issued 11 pursuant to the local finance law for such purpose, which is hereby 12 determined to be a specific object or purpose having a period of proba- 13 ble usefulness of five years. In the event of the failure or inability 14 of the city to pay over to the corporation, in full, on or before such 15 first day of April the amount so certified the chairperson of the corpo- 16 ration shall forthwith certify to the comptroller of the state of New 17 York the amount remaining unpaid and thereupon the state comptroller 18 shall pay to the corporation, out of the first moneys available for the 19 next succeeding payments of [~~(i)~~] (A) state aid apportioned to the city 20 of New York and, to the extent the amounts available therefor are insuf- 21 ficient, state aid apportioned to the city of Staten Island, as per 22 capita aid for the support of local government pursuant to section 23 fifty-four of the state finance law or [~~(ii)~~] (B) such other aid or 24 assistance payable by the state to the city and to the extent the 25 amounts available therefor are insufficient, such aid or assistance 26 payable by the state to the city of Staten Island and not otherwise 27 allocated as shall supersede or supplement such state per capita aid, 28 including federal moneys apportioned to the city and, to the extent the 29 amounts available therefor are insufficient, such moneys apportioned to 30 the city of Staten Island by the state, such amount remaining unpaid, 31 after giving written notice to the director of management and budget of 32 each amount to be paid out of such state aid, until the amount in each 33 such capital reserve fund is restored to the maximum capital reserve 34 fund requirement thereof; provided, however, that prior to the issuance 35 of any notes or bonds of the corporation pursuant to this article the 36 city shall have enacted a local law authorizing payments from such 37 sources into such a fund so long as any notes or bonds of the corpo- 38 ration shall be outstanding and unpaid, and provided further that 39 moneys, if any, payable to the city university construction fund pursu- 40 ant to the provisions of the city university construction fund act shall 41 be paid, in full, to such fund, prior to any payments therefrom to the 42 corporation. Any amount so paid over to the corporation shall be 43 deducted from the corresponding apportionment of such per capita state 44 aid otherwise payable to the city of New York or the city of Staten 45 Island, as applicable, and shall not obligate the state to make nor 46 entitle the city or the city of Staten Island to receive any additional 47 apportionment or payment of per capita state aid. All amounts paid over 48 to the corporation as provided in this [~~paragraph~~] subparagraph, includ- 49 ing amounts paid by the state comptroller out of payments of such state 50 aid, shall constitute and be accounted for as non-interest bearing loans 51 by the city or the city of Staten Island, as applicable to the corpo- 52 ration and, subject, subordinate and junior to the rights of the holders 53 of any notes or bonds of the corporation theretofore or thereafter 54 issued, shall be repaid to the city from [~~(i)~~] (A) moneys in such capi- 55 tal reserve fund in excess of the maximum capital reserve fund require-

S. 8578 91 1 ment thereof or [~~(ii)~~] (B) any moneys of the corporation not required 2 for any other of its corporate purposes. 3 (ii) Notwithstanding subparagraph (i) of this paragraph, on or after 4 the first of January next succeeding the date on which this subparagraph 5 shall have become a law, the corporation shall not issue any bonds, 6 notes or other obligations secured by a capital reserve fund into which 7 per capita state aid or other aid otherwise payable to the city of 8 Staten Island is to be deposited pursuant to this subparagraph, 9 provided, however, the corporation may issue refunding bonds to pay 10 bonds previously issued, which refunding bonds may be so secured if the 11 corporation gives reasonable adequate notice of its intention to issue 12 such refunding bonds to the mayor of the city of Staten Island and the 13 comptroller of the city of Staten Island and both such officials are 14 given a reasonable opportunity to participate at the meeting or meetings 15 of the board of the corporation at which action is taken to issue such 16 refunding bonds. 17 f. In the event the chairperson of the corporation shall certify to 18 the mayor and director of management and budget or to the state comp- 19 troller any amount necessary to restore a capital reserve fund to the 20 maximum capital reserve fund requirement thereof pursuant to subdivision 21 e of this section, the chairperson shall simultaneously deliver to the 22 mayor of the city of Staten Island and the comptroller of the city of 23 Staten Island and additionally to such persons a statement of the cause 24 or causes of such capital reserve fund deficiency and the measures to be 25 taken by the corporation or the department of housing preservation and 26 development to insure repayment of any loans made by the city or the 27 city of Staten Island to the corporation, including amounts paid by the 28 state comptroller out of payments of state aid, for the purpose of 29 restoring such capital reserve fund to the maximum capital reserve fund 30 requirement thereof and to prevent the recurrence of any such deficien- 31 cy. 32 § 7-010. Subdivision 4 of section 1680-b of the public authorities 33 law, as amended by chapter 62 of the laws of 1988, is amended to read as 34 follows: 35 4. In the event that a participating municipality fails to pay to the 36 authority when due all or part of the rentals and other payments payable 37 pursuant to any lease, sublease or agreement with the authority, the 38 chairman or another officer of the authority shall certify at the times 39 provided in this subdivision the amount of rentals and other payments 40 then due from such participating municipality and unpaid. The state 41 comptroller, upon receipt of such certificate, shall deduct the amount 42 of such rentals and other payments as remains unpaid to the authority 43 first from the aid payable to such participating municipality from the 44 court facilities incentive aid fund established by section ninety-four 45 of the state finance law and, then, from the next succeeding payments of 46 state aid apportioned to such participating municipality, as revenue 47 sharing, per capita aid, and any other aid pursuant to section fifty- 48 four of the state finance law and, then, from the next succeeding 49 payments of state aid for any local governmental administrative costs 50 that are reimbursable to the participating municipality pursuant to 51 state law and, then, from the next succeeding payments of state aid from 52 moneys appropriated pursuant to section six hundred eight of the public 53 health law and pursuant to section ten-c of the highway law; provided, 54 however, that the right of the authority to the payment of any amount 55 deducted by the state comptroller pursuant to this section from per 56 capita aid apportioned to the city of New York or, to the extent insuf-

S. 8578 92 1 ficient, the city of Staten Island shall be subject and subordinate to 2 the rights of the city university construction fund pursuant to section 3 sixty-two hundred seventy-nine of the education law, the New York city 4 housing development corporation pursuant to section six hundred fifty- 5 six of the private housing finance law, the trustees of the police 6 pension fund pursuant to paragraph e of subdivision seven of section 7 fifty-four of the state finance law, and the municipal assistance corpo- 8 ration for the city of New York pursuant to section three thousand thir- 9 ty-six-a of this chapter and subdivision one of section ninety-two-e of 10 the state finance law. In order to insure that the amount of rentals 11 and other payments due and unpaid by a participating municipality are 12 paid, the authority on or within thirty days prior to January twenty- 13 fifth, April twenty-fifth, July twenty-fifth and October twenty-fifth of 14 each year shall certify to the state comptroller the amount of rentals 15 and other payments then due and unpaid by each participating munici- 16 pality pursuant to any lease, sublease or other agreement. The amount 17 required to be deducted by the state comptroller pursuant to this subdi- 18 vision shall be deducted from such aid, whether or not the state aid 19 from which such deduction is to be made is then payable to the partic- 20 ipating municipality, and thereupon paid to the authority. The amount of 21 state aid payable to such participating municipality shall be reduced by 22 the amount deducted by the state comptroller notwithstanding the amount 23 appropriated and apportioned by the state to such participating munici- 24 pality, and the state shall not be obligated to make and the participat- 25 ing municipality shall not be entitled to receive any additional appor- 26 tionment or payment of such state aid. Nothing shall be construed to 27 create an obligation upon the state to appropriate moneys, to preclude 28 the state from reducing the amount of moneys appropriated or level of 29 assistance provided, or to preclude the state from altering or modifying 30 the manner in which it provides for or provides assistance. 31 § 7-011. Section 1727 of the public authorities law is amended by 32 adding a new subdivision 9 to read as follows: 33 9. Notwithstanding the provisions of this section or any other 34 provision of law to the contrary, the authority shall continue its 35 corporate existence regardless of the alteration of the composition of 36 the board of education of the city school district of the city of New 37 York caused by the incorporation of the city of Staten Island and the 38 establishment of the city school district of the city of Staten Island. 39 § 8-001. Subdivision 1 of section 23 of the executive law, as amended 40 by chapter 385 of the laws of 2017, is amended to read as follows: 41 1. Each county, except Richmond county and those counties contained 42 within the city of New York, and each city with a population of one 43 million or more, shall prepare a comprehensive emergency management 44 plan. Each city with a population of less than one million, town and 45 village is authorized to prepare a comprehensive emergency management 46 plan. The disaster preparedness commission shall provide assistance and 47 advice for the development of such plans. Each city with a population of 48 less than one million, town and village plan shall be coordinated with 49 the county plan. 50 § 8-002. Subdivision 1 of section 101-b of the executive law, as 51 added by chapter 1214 of the laws of 1971, is amended to read as 52 follows: 53 1. Definitions. As used in this section, 54 a. "Agency" means any state board, bureau, commission, department, 55 division or officer authorized by law to adopt rules.

S. 8578 93 1 b. "Rule" means the whole or part of each agency statement of general 2 applicability or regulation or code that implements or applies law, 3 including the amendment, suspension or repeal thereof. 4 c. "Municipal corporation" means [a] any county outside the [~~city~~] 5 cities of New York and Staten Island, a city, a town, a village or a 6 school district. 7 d. "Governing body" means: 8 (1) In a county, a board of supervisors, county legislature or other 9 body vested by its charter, other law or other valid enactment with 10 jurisdiction to enact local laws; 11 (2) In a city, the board of aldermen, a common council, commission or 12 other body vested by its charter or other law with jurisdiction to enact 13 ordinances or local laws; 14 (3) In a town, the town board; 15 (4) In a village, the board of trustees; and 16 (5) In a school district, the board of education, board of trustees or 17 sole trustee. 18 § 8-003. Intentionally omitted. 19 § 8-004. Subdivisions 1, 2, 3, 4 and 6 of section 246 of the executive 20 law, subdivisions 1, 2 and 3 as amended by section 10 of part D of chap- 21 ter 56 of the laws of 2010, subdivision 4 as amended by section 102 of 22 part WWW of chapter 59 of the laws of 2017, and subdivision 6 as added 23 by chapter 479 of the laws of 1970 and as renumbered by chapter 813 of 24 the laws of 1985, are amended to read as follows: 25 1. The program of state aid to county probation services shall be 26 administered by the division of criminal justice services with the 27 advice of the state probation commission and the director of the office 28 of probation and correctional alternatives. Funds appropriated to the 29 division for distribution as state aid to county probation services 30 [~~and~~], to the probation services of New York city and to the probation 31 services of the city of Staten Island shall be distributed by the divi- 32 sion in accordance with rules and regulations adopted by the commission- 33 er of the division of criminal justice services after consultation with 34 the state probation commission and the director of the office of 35 probation and correctional alternatives. 36 2. State aid shall be granted to the city of New York, the city of 37 Staten Island and the respective counties outside [~~the city of New York~~] 38 such cities for expenditures to be incurred by the county or [~~city~~] such 39 cities in maintaining and improving local probation services subject to 40 amounts appropriated for this purpose. State aid grants shall not be 41 used for expenditures for capital additions or improvements, or for debt 42 service costs for capital improvements. 43 State aid shall be granted by the commissioner of the division of 44 criminal justice services after consultation with the state probation 45 commission and the director of the office of probation and correctional 46 alternatives, provided the respective counties or the city of Staten 47 Island or the city of New York conform to standards relating to the 48 administration of probation services as adopted by the commissioner of 49 the division of criminal justice services after consultation with the 50 state probation commission and the director of the office of probation 51 and correctional alternatives. 52 3. Applications from counties or the city of Staten Island or the city 53 of New York for state aid under this section shall be made by filing 54 with the division of criminal justice services, a detailed plan, includ- 55 ing cost estimates covering probation services for the fiscal year or 56 portion thereof for which aid is requested. Included in such estimates

S. 8578 94 1 shall be clerical costs and maintenance and operation costs as well as 2 salaries of probation personnel and such other pertinent information as 3 the commissioner of the division of criminal justice services may 4 require. Items for which state aid is requested under this section shall 5 be duly designated in the estimates submitted. The commissioner of the 6 division of criminal justice services, after consultation with the state 7 probation commission and the director of the office of probation and 8 correctional alternatives, shall approve such plan if it conforms to 9 standards relating to the administration of probation services as speci- 10 fied in the rules adopted by [~~him or her~~] such commissioner. 11 4. An approved plan and compliance with standards relating to the 12 administration of probation services promulgated by the commissioner of 13 the division of criminal justice services shall be a prerequisite to 14 eligibility for state aid. 15 The commissioner of the division of criminal justice services may take 16 into consideration granting additional state aid from an appropriation 17 made for state aid for county probation services for counties or the 18 city of Staten Island or the city of New York when a county or the city 19 of Staten Island or the city of New York demonstrates that additional 20 probation services were dedicated to intensive supervision programs and 21 intensive programs for sex offenders. The commissioner shall grant addi- 22 tional state aid from an appropriation dedicated to juvenile risk inter- 23 vention services coordination by probation departments which shall 24 include, but not be limited to, probation services performed under arti- 25 cle three of the family court act. The administration of such additional 26 grants shall be made according to rules and regulations promulgated by 27 the commissioner of the division of criminal justice services. Each 28 county and the city of Staten Island and the city of New York shall 29 certify the total amount collected pursuant to section two hundred 30 fifty-seven-c of this chapter. The commissioner of the division of crim- 31 inal justice services shall thereupon certify to the comptroller for 32 payment by the state out of funds appropriated for that purpose, the 33 amount to which the county or the city of Staten Island or the city of 34 New York shall be entitled under this section. The commissioner shall, 35 subject to an appropriation made available for such purpose, establish 36 and provide funding to probation departments for a continuum of 37 evidence-based intervention services for youth alleged or adjudicated 38 juvenile delinquents pursuant to article three of the family court act 39 or for eligible youth before or sentenced under the youth part in 40 accordance with the criminal procedure law. Such additional state aid 41 shall be made in an amount necessary to pay one hundred percent of the 42 expenditures for evidence-based practices and juvenile risk and 43 evidence-based intervention services provided to youth sixteen years of 44 age or older when such services would not otherwise have been provided 45 absent the provisions of [a] part WWW of chapter fifty-nine of the laws 46 of two thousand seventeen [~~that increased the age of juvenile jurisdic-~~ 47 ~~tion~~]. 48 6. The director, after consultation with the state probation commis- 49 sion, may authorize or require the comptroller to withhold the payment 50 of state aid to any county, or the city of Staten Island or the city of 51 New York, in the event that such county, or the city of Staten Island or 52 the city of New York, (a) fails to conform to standards of probation 53 administration as formulated by the director pursuant to this section, 54 (b) discontinues or fails to follow an approved plan, or (c) fails to 55 enforce in a satisfactory manner rules promulgated pursuant to this

S. 8578 95 1 section, or laws now in effect or hereafter adopted which relate in any 2 manner to the administration of probation services. 3 § 8-004-a. The second undesignated paragraph of subdivision 4 of 4 section 246 of the executive law, as amended by section 103 of part WWW 5 of chapter 59 of the laws of 2017, is amended to read as follows: 6 The commissioner of the division of criminal justice services may take 7 into consideration granting additional state aid from an appropriation 8 made for state aid for county probation services for counties or the 9 city of Staten Island or the city of New York when a county or the city 10 of Staten Island or the city of New York demonstrates that additional 11 probation services were dedicated to intensive supervision programs and 12 intensive programs for sex offenders. The commissioner shall grant addi- 13 tional state aid from an appropriation dedicated to juvenile risk inter- 14 vention services coordination by probation departments which shall 15 include, but not be limited to, probation services performed under arti- 16 cle three of the family court act. The administration of such additional 17 grants shall be made according to rules and regulations promulgated by 18 the commissioner of the division of criminal justice services. Each 19 county and the city of Staten Island and the city of New York shall 20 certify the total amount collected pursuant to section two hundred 21 fifty-seven-c of this chapter. The commissioner of the division of crim- 22 inal justice services shall thereupon certify to the comptroller for 23 payment by the state out of funds appropriated for that purpose, the 24 amount to which the county or the city of Staten Island or the city of 25 New York shall be entitled under this section. The commissioner shall, 26 subject to an appropriation made available for such purpose, establish 27 and provide funding to probation departments for a continuum of 28 evidence-based intervention services for youth alleged or adjudicated 29 juvenile delinquents pursuant to article three of the family court act 30 or for eligible youth before or sentenced under the youth part in 31 accordance with the criminal procedure law. 32 § 8-005. Subdivision 1 of section 255 of the executive law, as added 33 by chapter 603 of the laws of 1973, is amended to read as follows: 34 1. There is hereby created a department of probation in and for the 35 city of New York to have charge of all probation work in the supreme, 36 family and criminal courts in the counties of Bronx, Kings, New York[,] 37 and Queens [~~and Richmond~~]. 38 § 8-006. The executive law is amended by adding a new section 255-a to 39 read as follows: 40 § 255-a. Probation in the city of Staten Island. 1. There is hereby 41 created a department of probation in and for the city of Staten Island 42 to have charge of all probation work in the supreme, family and other 43 criminal courts in the county of Richmond. 44 2. The head of such department shall be a director of probation 45 appointed by the mayor of the city of Staten Island to serve during the 46 pleasure of the mayor. The director shall have charge of the adminis- 47 tration of the department and shall be responsible for carrying out the 48 functions of the department including intake, investigation, super- 49 vision, conciliation and pre-disposition social treatment in cases 50 coming to the courts referred to in this section. The director may, 51 from time to time, create, abolish, transfer and consolidate bureaus and 52 other units within the department as such director may determine neces- 53 sary for efficient operation thereof. The director also shall have the 54 power to appoint and remove such deputy directors, assistants, probation 55 officers and other employees as may be needed for the performance of the 56 duties of the department and may prescribe their duties and fix their

S. 8578 96 1 compensation, within appropriations made available therefor by the city 2 of Staten Island and subject to all applicable civil service laws and 3 rules and regulations. The director may, in such director's discretion, 4 appoint volunteer probation officers, when necessary, provided they have 5 the qualifications required of salaried officers, but no such volunteer 6 probation officer shall receive pay from the public funds for such offi- 7 cer's services. The city of Staten Island shall make the necessary 8 appropriation for the salaries of the director and of all officers and 9 employees of the department as referred to in this subdivision, as well 10 as for the expenses actually and necessarily incurred by such director, 11 officers and employees in the performance of their duties. 12 3. The director shall discharge such director's powers and responsi- 13 bilities in accordance with all laws and rules applicable to probation 14 and with the general rules regulating methods and procedure in the 15 administration of probation as adopted from time to time pursuant to 16 section two hundred forty-three of this chapter. The director may adopt 17 departmental rules, not inconsistent with law or the aforesaid general 18 rules, to regulate the policies, programs, standards, and methods of 19 procedure in relation to probation and the powers and duties of officers 20 and employees as in the director's judgment are deemed proper. 21 4. Notwithstanding any other provision of law or of the Staten Island 22 city charter or administrative code, any duly appointed officer or 23 employee of such probation department may reside in any county within 24 the state. 25 § 8-007. Subdivisions 1 and 4 of section 257-c of the executive law, 26 as added by chapter 55 of the laws of 1992, are amended to read as 27 follows: 28 1. Notwithstanding any other provision of law, every county, the city 29 of Staten Island and the city of New York, may adopt a local law requir- 30 ing individuals currently serving or who shall be sentenced to a period 31 of probation upon conviction of any crime under article thirty-one of 32 the vehicle and traffic law to pay to the local probation department 33 with the responsibility of supervising the probationer an administrative 34 fee of thirty dollars per month. The department shall waive all or part 35 of such fee where, because of the indigence of the offender, the payment 36 of said surcharge would work an unreasonable hardship on the person 37 convicted, [~~his or her~~] such person's immediate family, or any other 38 person who is dependent on such person for financial support. 39 4. In the event of non-payment of any fees which have not been waived 40 by the local probation department, the county, the city of Staten Island 41 or the city of New York may seek to enforce payment in any manner 42 permitted by law for enforcement of a debt. 43 § 8-008. Subdivision 3 of section 262 of the executive law, as amended 44 by section 28 of part A of chapter 56 of the laws of 2010, is amended to 45 read as follows: 46 3. Upon approval by the board, by a majority of its members, any coun- 47 ty outside the [~~city~~] cities of New York and Staten Island acting 48 through its county executive, and upon approval of the local legislative 49 body, may submit a proposed service plan to the office for approval. The 50 city of New York acting through the mayor and upon approval by the board 51 of estimate and the city of Staten Island acting through the mayor and 52 upon approval by the common council may submit a proposed service plan 53 to the office for approval. 54 § 8-009. Subdivisions 1 and 2 of section 266 of the executive law, as 55 added by chapter 338 of the laws of 1989, are amended to read as 56 follows:

S. 8578 97 1 1. Counties and the [~~city~~] cities of New York and Staten Island may 2 submit approved amendments for alcohol and substance abuse programs as 3 defined in this article as part of or in addition to an approved plan. 4 In accordance with this article, nothing in this section shall prohibit 5 the development of regional alcohol and substance abuse programs by two 6 or more counties, the city of Staten Island or cities with a population 7 of one million or more. 8 2. Such approved amendments shall include a statement by the county or 9 the city of New York or the city of Staten Island indicating such 10 municipality's understanding that funding for eligible alcohol and 11 substance abuse programs shall be in accordance with subdivision four of 12 this section and the municipality's commitment to meet the funding 13 requirements as set forth in such subdivision. 14 § 8-010. Section 267 of the executive law, as amended by section 33 of 15 part A of chapter 56 of the laws of 2010, is amended to read as follows: 16 § 267. Office reports. The office shall submit to the governor, the 17 temporary president of the senate, the speaker of the assembly, the 18 [~~chairman~~] chairperson of the senate crime and correction committee and 19 the [~~chairman~~] chairperson of the assembly committee on codes by October 20 first of each year its evaluation and assessment of this alternatives 21 planning and programming effort by the counties. Such report shall 22 include, but not be limited to, the status of the development of such 23 plans, the approval and implementation of such plans, the success of the 24 programs, in terms of their utilization, effect on jail population, 25 results of the analyses provided counties and the [~~city~~] cities of New 26 York and Staten Island on the relationship between alcohol, drugs and 27 crime and the success of the eligible alcohol and substance abuse 28 programs and sentencing decisions together with any recommendations with 29 respect to the proper operation or improvement of planning and implemen- 30 tation of effective alternatives to detention and alternatives to incar- 31 ceration programs in counties. 32 § 8-011. Subdivisions 1 and 7 of section 530 of the executive law, 33 subdivision 1 as amended by section 4 of subpart B of part Q of chapter 34 58 of the laws of 2011, subdivision 7 as amended by section 21 of part K 35 of chapter 56 of the laws of 2019, are amended to read as follows: 36 1. Definitions. As used in this section, the term "municipality" shall 37 mean a county, the city of Staten Island or a city having a population 38 of one million or more. 39 7. The agency administering detention for each county and the city of 40 Staten Island and the city of New York shall submit to the office of 41 children and family services, at such times and in such form and manner 42 and containing such information as required by the office of children 43 and family services, an annual report on youth remanded pursuant to 44 article three or seven of the family court act who are detained during 45 each calendar year including, commencing January first, two thousand 46 twelve, the risk level of each detained youth as assessed by a detention 47 risk assessment instrument approved by the office of children and family 48 services provided, however, that the report due January first, two thou- 49 sand twenty-one and thereafter shall not be required to contain any 50 information on youth who are subject to article seven of the family 51 court act. The office may require that such data on detention use be 52 submitted to the office electronically. Such report shall include, but 53 not be limited to, the reason for the court's determination in accord- 54 ance with section 320.5 or seven hundred thirty-nine of the family court 55 act to detain the youth; the offense or offenses with which the youth is 56 charged; and all other reasons why the youth remains detained. The

S. 8578 98 1 office shall submit a compilation of all the separate reports to the 2 governor and the legislature. 3 § 8-012. Subdivisions 1, 2 and 4 of section 214 of the elder law are 4 amended to read as follows: 5 1. Definitions. As used in this section, the following words shall 6 have the following meanings: 7 (a) "Designated agency" shall mean an agency which is designated by 8 the chief executive officer of the county if there be one, or otherwise 9 the governing board of such county, or the chief executive officer of 10 the city of New York or the mayor of the city of Staten Island, or the 11 governing board of an Indian tribal council; which is either a unit of 12 county government or the city of New York or the city of Staten Island 13 or an Indian tribal organization or a private non-profit agency, and 14 which is the area agency on aging created pursuant to the federal older 15 Americans act of 1965. 16 (b) "Elderly person" shall mean a person sixty years of age or older. 17 (c) "County" shall mean a county, as defined in section three of the 18 county law, except that the city of New York shall be considered one 19 county. 20 (d) "Base year expenditures" and "base year services" shall mean the 21 level of expenditures and services in the year prior to the first year 22 for which a county plan is submitted or in such county's two thousand 23 five fiscal year, whichever is greater. 24 (e) "Community services" shall mean services for elderly persons which 25 are provided by a public or governmental agency or non-profit agency, 26 and which are provided in the home of an elderly person or in community 27 settings such as senior citizens centers, housing projects, or agency 28 offices. Such services shall not include any services provided pursuant 29 to the public health law other than home care services. 30 (f) "Community service projects" shall mean community services 31 financed pursuant to paragraph (b) of subdivision four of this section. 32 (g) "County plan" shall mean a plan for community services prepared by 33 a county pursuant to this section. 34 (h) "Non-profit agency" shall mean a corporation organized or existing 35 pursuant to the not-for-profit corporation law. 36 (i) "Program year" shall mean the period from April first through 37 March thirty-first of the following calendar year. 38 (j) "First program year" for a county shall mean the initial year for 39 which the county has received approval for its county plan. 40 2. County plans for improving the availability of community services 41 to the elderly. (a) Counties with a designated agency are required to 42 submit a county plan for a two-, three-, or four-year period determined 43 by the director, with an annual update containing a budget request for 44 the forthcoming program year and such other information as shall be 45 required by the director, for improving the delivery of community 46 services for elderly persons in the format prescribed by the director. 47 The plan for the city of New York or the plan for the city of Staten 48 Island shall specifically address the needs of each county within such 49 city. Such plan shall be a comprehensive description of the manner in 50 which the county intends to address the needs of elderly persons living 51 in the county through improved coordination of existing community 52 services and by the development of any new or expanded community service 53 projects which will improve the delivery of services to the elderly. 54 Such plan shall contain: 55 (1) a statement of goals and objectives for addressing the needs of 56 elderly persons in the county, an assessment of the needs of elderly

S. 8578 99 1 persons residing in the county, a description of public and private 2 resources that currently provide community services to elderly persons 3 within the county, a description of intended actions to consolidate and 4 coordinate existing community services administered by county govern- 5 ment, a description of the intended actions to coordinate congregate 6 services programs for the elderly operated within the county pursuant to 7 section two hundred seventeen of this title with other community 8 services for the elderly, a description of the means to coordinate other 9 community services for elderly persons in the county with those adminis- 10 tered by county government, and a statement of the priorities for the 11 provision of community services during the program period covered by 12 such plan; 13 (2) an identification of community service projects to be developed to 14 improve the delivery of services, a budget request for approval for the 15 forthcoming year which individually identifies each community service 16 project to be funded pursuant to paragraph (b) of subdivision four of 17 this section, letters of comment from the appropriate local agencies on 18 the relationship and expected impact of the proposed community service 19 projects, assurances that community service projects will provide 20 services to those most in need, an indication of fee schedules by which 21 elderly persons participating in community service projects may contrib- 22 ute to the costs of such projects, and an indication of how the effec- 23 tiveness of such community service projects will be evaluated; 24 (3) an identification of planning, coordination, and administrative 25 activities necessary to achieve the goals and objectives of the plan, 26 together with a budget request for such activities for approval for the 27 forthcoming year to be funded pursuant to paragraph (a) of subdivision 28 four of this section, and assurances by the county that it will comply 29 with the requirements of state and federal law; and 30 (4) such other components as may be required pursuant to regulations 31 promulgated by the director. 32 (b) Such county plan for community services or annual update shall be 33 prepared by the designated agency and approved by the chief executive 34 officer of the county, if there be one, or otherwise the governing board 35 of the county, or the chief executive of the city of New York or the 36 mayor of the city of Staten Island and submitted to the director no 37 later than ninety days prior to the beginning of the program period 38 covered by such plan or annual update. Prior to a submission of a coun- 39 ty plan or annual update to the director for approval, the designated 40 agency shall conduct such public hearings as may be required by regu- 41 lations of the director, provided that there shall be at least one such 42 hearing, and one in each county contained within the city of New York or 43 the city of Staten Island. 44 (c) The director shall review such county plan and may approve or 45 disapprove such plan, or any part, program, or project within such plan, 46 and shall propose such modifications and conditions as are deemed appro- 47 priate and necessary. Compliance with paragraphs (a) and (b) of this 48 subdivision shall be the basis for approval of a county plan. The direc- 49 tor shall establish by regulation the dates for notifying the designated 50 agency of approval or disapproval of a county plan. In the event the 51 director shall disapprove the proposed county plan, the county submit- 52 ting such application shall be afforded an opportunity for an adjudica- 53 tory hearing, as prescribed by article three of the state administrative 54 procedure act. 55 (d) Notwithstanding any provision of this section, nothing contained 56 in this section shall give the director or a designated agency any

S. 8578 100 1 administrative, fiscal, supervisory, or other authority whatsoever over 2 any plans, programs or expenditures authorized pursuant to titles eigh- 3 teen, nineteen and twenty of the federal social security act, or over 4 any unit of state or local government. 5 (e) Counties with a designated agency may submit to the director a 6 letter of intent, in the form and by the date prescribed by the director 7 with the approval of the director of the budget, evidencing the commit- 8 ment of the county to develop a county home care plan for functionally 9 impaired elderly. 10 (f) Within the amounts appropriated therefor, counties submitting an 11 approved letter of intent pursuant to paragraph (e) of this subdivision 12 shall be eligible for reimbursement of one hundred percent of the 13 approved expenditures for preparing a county home care plan for func- 14 tionally impaired elderly. Such a grant-in-aid shall be available to a 15 county only once and shall be limited to one-half the amount available 16 to such county pursuant to subparagraph one of paragraph (a) of subdivi- 17 sion four of this section; provided however that in either of the two 18 years immediately following its first submission of a home care plan for 19 functionally impaired elderly, a county which does not receive state aid 20 during such year for expanded non-medical in-home services, non-institu- 21 tional respite services, case management services, and ancillary 22 services pursuant to paragraph (j) of subdivision four of this section, 23 may apply for reimbursement of one hundred percent of the approved 24 expenditures for revising such home care plan, limited to one-quarter 25 the amount available to such county pursuant to subparagraph one of 26 paragraph (a) of subdivision four of this section. 27 (g) County home care plans for functionally impaired elderly prepared 28 pursuant to this subdivision shall include a comprehensive description 29 of all aspects of home care, non-institutional respite, case management, 30 and ancillary services available to elderly persons in the county; a 31 description of intended actions to coordinate such home care, non-insti- 32 tutional respite, case management, and ancillary services to func- 33 tionally impaired elderly persons in their county provided under this 34 section with other services to elderly persons; a proposal for expanded 35 non-medical in-home services, non-institutional respite services, case 36 management services, and ancillary services for functionally impaired 37 elderly persons with unmet needs to support such persons' continued 38 residence in their homes; and such other components as may be required 39 pursuant to regulations promulgated by the director, including how the 40 proposed expanded non-medical in-home services, non-institutional 41 respite services, case management services, and ancillary services will 42 be delivered to unserved or underserved populations. 43 (h) Such county home care plan for functionally impaired elderly shall 44 be prepared by the designated agency after consultation with the social 45 services district and the local public health agency, and shall be 46 approved by the chief executive officer of the county, if there be one, 47 or otherwise the governing board of the county, or the chief executive 48 of the city of New York or the mayor of the city of Staten Island, and 49 submitted to the director for approval by such date as may be specified 50 by regulation. The director shall not approve such county home care plan 51 for functionally impaired elderly unless it complies with the standards 52 and regulations issued pursuant to this section. 53 4. State aid. (a) County plans for improving the availability of 54 community services to the elderly: 55 (1) within the amounts appropriated therefor, counties with an 56 approved county plan shall be eligible for reimbursement of one hundred

S. 8578 101 1 percent of the annual approved expenditures for the preparation and 2 revision of such county plan, evaluation of projects contained within 3 such county plan, execution of interagency agreements necessary to carry 4 out the plan, actions to consolidate, combine or collocate services 5 within the county, and such other costs of the designated agency neces- 6 sary to implement such county plan, provided that the total annual 7 amount payable to a county pursuant to this subparagraph shall not 8 exceed the sum of one dollar for each elderly person residing in the 9 county, or seventy-five thousand dollars, whichever is less, and further 10 provided that for the city of New York or the city of Staten Island such 11 amount shall not exceed one dollar for each elderly person residing in 12 [~~the~~] such city or three hundred seventy-five thousand dollars, whichev- 13 er is less. Notwithstanding the foregoing limitations, counties with a 14 population of less than twenty thousand elderly persons shall be eligi- 15 ble for reimbursement of one hundred percent of such annual approved 16 expenditures provided that the total annual amount of such reimbursement 17 per county shall not exceed twenty thousand dollars. 18 (2) within the amounts appropriated therefor, a county may receive a 19 grant-in-aid of up to twenty-five per centum of the total annual amount 20 that such county is eligible to receive pursuant to subparagraph one of 21 this paragraph for the cost of preparing an initial county plan in 22 accordance with this section. Such a grant-in-aid shall be available to 23 a county only once and shall be in addition to the reimbursement 24 received by the county pursuant to subparagraph one of this paragraph 25 for the first program year. A request for such a grant-in-aid shall be 26 accompanied by a letter of intent in the form prescribed by the director 27 evidencing the commitment of the county to develop a county plan for 28 community services and shall be submitted to the director at least six 29 months prior to the beginning of the first program year. 30 (b) Community service projects: 31 (1) within the amounts appropriated therefor, counties having an 32 approved county plan shall be eligible for reimbursement by the state 33 for expenditures for approved community service projects pursuant to 34 this section. Such state reimbursement shall not exceed thirty-three 35 thousand six hundred dollars or four dollars twenty cents for each 36 elderly person residing in the county, whichever is greater. The annual 37 state reimbursement eligibility shall be at a rate of seventy-five 38 percent of the total annual expenditures for such approved programs. 39 (2) the director shall provide by regulation that certain non-county 40 moneys and in-kind equivalents may be used to comprise the county share 41 of such total annual approved expenditures, provided that such county 42 share shall not include cost-sharing received from elderly persons 43 receiving expanded non-medical in-home services, non-institutional 44 respite services, case management services, and ancillary services 45 pursuant to paragraph (k) of this subdivision or moneys received from 46 the federal government for services for the elderly allocated to the 47 states or local governments according to population or other such non- 48 competitive basis. 49 (3) the director shall provide by regulation the requirements for any 50 participant contributions and fee schedules used for community service 51 projects and the manner for the accounting and use of any such revenue. 52 (c) Reimbursement pursuant to this section shall not be available for 53 expenditures for base year services otherwise provided without cost, or 54 to replace base year expenditures made by the county or any other 55 service provider irrespective of the source of funds for such services.

S. 8578 102 1 (d) Reimbursement shall not be available to community services 2 projects funded pursuant to paragraph (b) of this subdivision or to 3 expanded non-medical in-home services, non-institutional respite 4 services, case management services, and ancillary services funded pursu- 5 ant to paragraph (j) of this subdivision for services provided to elder- 6 ly persons who are eligible for or are receiving services to meet their 7 needs pursuant to titles eighteen, nineteen or twenty of the federal 8 social security act or any other governmental programs or for services 9 provided to residents in adult residential care facilities which had 10 previously been provided by the facility or which are required by law to 11 be provided by such facility. 12 (e) For the purpose of determining the amount of state reimbursement 13 for which a county is eligible pursuant to this section, the last 14 preceding federal census or other census data approved by the comp- 15 troller shall be used. Funds appropriated by the state for the purpose 16 of reimbursement for community services pursuant to this section shall 17 be apportioned among the counties pursuant to the formula set forth in 18 paragraph (b) of this subdivision by the director. Funds appropriated by 19 the state for the purpose of reimbursement for expanded non-medical 20 in-home services, non-institutional respite services, case management 21 services, and ancillary services pursuant to this section shall be 22 apportioned among the counties by the director pursuant to the formula 23 set forth in paragraph (j) of this subdivision. 24 (f) The comptroller may withhold the payment of state aid to any coun- 25 ty in the event that such county alters or discontinues the operations 26 approved by the director pursuant to this section or otherwise fails to 27 comply with the regulations or requirements of the director. 28 (g) Counties shall submit claims for reimbursement after the end of 29 each month or each quarter as required by and in accordance with proce- 30 dures prescribed by the director. Reimbursement shall be available for 31 approved expenditures incurred in accordance with an approved county 32 plan for community services. 33 (h) Reimbursement pursuant to subparagraph one of paragraph (b) or 34 paragraph (j) of this subdivision shall not be available for expendi- 35 tures for community or expanded non-medical in-home services, non-insti- 36 tutional respite services, case management services, and ancillary 37 services to elderly persons in the city of New York and in the city of 38 Staten Island unless expenditures for such services are apportioned for 39 services in each of the counties contained within such city in a manner 40 which the director has determined by regulation substantially reflects 41 the proportion that the number of elderly persons in that county bears 42 to the total number of elderly persons in [~~the~~] such city as a whole. In 43 determining whether reimbursement shall be available under paragraph (g) 44 of this subdivision, the director shall ensure that expenditures were 45 apportioned in accordance with the provisions of this paragraph. 46 (i) The director, within the amounts appropriated therefor and with 47 the approval of the director of the budget, may authorize a county which 48 has an approved home care plan for functionally impaired elderly to 49 provide expanded non-medical in-home services, non-institutional respite 50 services, case management services, and ancillary services pursuant to 51 such plan. Such services shall be limited to those services necessary to 52 meet otherwise unmet needs and which support such elderly persons' 53 continued residence in their homes. Needs will be determined pursuant to 54 a standardized evaluation of functional impairment, available resources 55 and such other relevant factors specified pursuant to regulations 56 promulgated by the director. No expanded non-medical in-home services,

S. 8578 103 1 non-institutional respite services, or ancillary services shall be 2 provided to any individual pursuant to this section unless such expanded 3 non-medical in-home services, non-institutional respite services, or 4 ancillary services are accompanied by ongoing case management services 5 in accordance with regulations promulgated by the director. 6 (j) Within the amounts appropriated therefor, counties authorized to 7 provide expanded non-medical in-home services, non-institutional respite 8 services, case management services, and ancillary services pursuant to 9 paragraph (i) of this subdivision shall be eligible for reimbursement by 10 the state of up to seventy-five percent of allowable expenditures for 11 approved services pursuant to this section up to the level authorized by 12 the director. The director shall not authorize a level of state 13 reimbursement pursuant to this paragraph which exceeds the sum of nine- 14 ty-one thousand two hundred fifty dollars or seven dollars thirty cents 15 for each elderly person residing in the county, whichever is greater, 16 and shall proportionately reduce such sum for each county in any years 17 for which appropriations are not sufficient to fully fund approved 18 expanded non-medical in-home services, non-institutional respite 19 services, case management services, and ancillary services for func- 20 tionally impaired elderly in all counties with approved home care plans; 21 provided however that in state fiscal years beginning on or after the 22 first day of April, two thousand five, the director, with the approval 23 of the director of the budget, may authorize state reimbursement in 24 excess of these levels to the extent appropriations are available there- 25 for. 26 (k) The director, with the approval of the director of the budget, 27 shall provide by regulation the extent of cost-sharing to be required of 28 elderly persons receiving expanded non-medical in-home services, non-in- 29 stitutional respite services, case management services, and ancillary 30 services pursuant to this section, which shall reflect such recipients' 31 means to pay for such services and which will not affect their ability 32 to remain in their homes; provided however that the director shall not 33 authorize or direct the withholding of state aid pursuant to paragraph 34 (f) of this subdivision prior to the first day of April, two thousand 35 five, based on any county's failure or inability to comply with regu- 36 lations promulgated pursuant to this paragraph. The full amount of cost- 37 sharing actually received by any county from elderly persons receiving 38 expanded non-medical in-home services, non-institutional respite 39 services, case management services, and ancillary services shall be used 40 by such county to expand either such county's program of community 41 services or such county's program of expanded non-medical in-home 42 services, non-institutional respite services, case management services, 43 and ancillary services pursuant to this section. 44 (l) Reimbursement pursuant to paragraph (j) of this subdivision shall 45 not be available for expenditures for base year services otherwise 46 provided without cost, or to replace base year expenditures made by the 47 county or any other service provider irrespective of the source of 48 funds, or to replace community services expenditures pursuant to para- 49 graph (b) of this subdivision. 50 (m) Counties shall submit claims for reimbursement for expanded 51 in-home services, non-institutional respite services, case management 52 services, and ancillary services to functionally impaired elderly as 53 required by and in accordance with procedures prescribed by the direc- 54 tor. Reimbursement shall be available for approved expenditures 55 incurred in accordance with an approved county home care plan for func- 56 tionally impaired elderly to the extent the director has authorized

S. 8578 104 1 state aid for such services pursuant to paragraph (i) of this subdivi- 2 sion. 3 (n) The director shall provide by regulation that certain non-county 4 moneys and in-kind equivalents may be used in part to compose the county 5 share of total allowable expenditures pursuant to paragraph (j) of this 6 subdivision, provided that such county share shall not include cost- 7 sharing received from elderly persons receiving expanded non-medical 8 in-home services, non-institutional respite services, case management 9 services, and ancillary services pursuant to paragraph (k) of this 10 subdivision or moneys received from the federal government for services 11 for the elderly allocated to the states or local governments according 12 to population or other such non-competitive basis. 13 § 8-013. Subdivision 9 of section 140 of the executive law, as amended 14 by chapter 861 of the laws of 1960, is amended to read as follows: 15 9. The clerks of the counties of New York, Kings, Queens, Richmond 16 and Bronx shall each keep a book or card index file in which shall be 17 registered the signature of the commissioners so filing such certif- 18 icates; and the county clerk of any county in the city with whom such 19 commissioner has filed a certificate of appointment shall, upon demand 20 and upon payment of the sum of fifty cents, authenticate a certificate 21 of acknowledgment or proof of oath taken before such commissioner of 22 deeds, without regard to the county in the city in which such [~~acknowlg-~~ 23 ~~ment~~] acknowledgment or proof was taken or oath administered, by 24 subjoining or attaching to the original certificate of acknowledgment or 25 proof or oath a certificate under [~~his~~] such clerk's hand and official 26 seal specifying that at the time of taking the acknowledgment or proof 27 or oath the officer taking it was duly authorized to take the same; that 28 the authenticating officer is acquainted with the former's handwriting, 29 or has compared the signature on the certificate of acknowledgment, 30 proof or oath with the autograph signature deposited in [~~his~~] such 31 clerk's office by such officer, and that [he] they verily believes the 32 signature is genuine. 33 § 8-014. Any person who resides in or maintains an office or other 34 place of business in the city of Staten Island and who resides in the 35 county of Richmond on the date of establishment of the city of Staten 36 Island who holds an appointment as a commissioner of deeds from the 37 preceding municipality shall be deemed to hold the appointment as 38 commissioner of deeds from the common council of the city of Staten 39 Island in accordance with the provisions of section 139 of the executive 40 law. Such person shall continue to hold such office until such person's 41 original appointment expires or is revoked pursuant to law. 42 § 8-015. Section 56 of the social services law, as amended by chapter 43 863 of the laws of 1977, is amended to read as follows: 44 § 56. City social services districts. The city of New York and the 45 city of Staten Island shall have all the powers and duties of a social 46 services district insofar as consistent with the provisions of the 47 special and local laws relating to such [~~city~~] cities. The officers 48 thereof charged with the administration of public assistance and care 49 shall have additional powers and duties of a commissioner of social 50 services not inconsistent with the laws relating to said [~~city~~] cities. 51 § 8-016. Section 57 of the social services law, as amended by chapter 52 863 of the laws of 1977, is amended to read as follows: 53 § 57. Cities in county social services districts. Each city, other 54 than the city of New York and the city of Staten Island, shall form part 55 of the county social services district of the county in which it is 56 situated and shall not assume any powers and responsibilities for the

S. 8578 105 1 administration or expense of public assistance and care, in addition to 2 those specified in subdivision two of section sixty-nine, except pursu- 3 ant to the provisions of sections seventy-four and seventy-four-a of 4 this chapter. 5 § 8-017. Section 61 of the social services law is amended by adding a 6 new subdivision 1-a to read as follows: 7 1-a. The city of Staten Island is hereby constituted a city social 8 services district. 9 § 8-018. Subdivision 1 of section 74 of the social services law, as 10 added by chapter 863 of the laws of 1977, is amended to read as follows: 11 1. Each city, other than the city of New York and the city of Staten 12 Island, which is responsible for one or more types of public assistance 13 and care on the date this section becomes effective shall function under 14 section seventy-four-a of this chapter. 15 § 8-019. Section 86-a of the social services law, as amended by chap- 16 ter 655 of the laws of 1978, is amended to read as follows: 17 § 86-a. City public welfare funds. The taxes levied for public 18 assistance and care in a city, or in a city public welfare district, 19 shall be paid to the city treasurer, [or] the commissioner of finance in 20 the city of New York or the comptroller in the city of Staten Island, 21 and disbursed in accordance with the provisions of law relating to such 22 city for the payment of bills and claims, provided such provisions of 23 law are not inconsistent with the provisions of this chapter. 24 § 8-020. Intentionally omitted. 25 § 8-021. Subdivision 2 of section 209 of the social services law, as 26 amended by chapter 71 of the laws of 1983, paragraphs (a), (b), (c), 27 (d), (e) and (f) as amended by section 2 of part R of chapter 56 of the 28 laws of 2025, is amended to read as follows: 29 2. The following amounts shall be the standard of monthly need for 30 determining eligibility for and the amount of additional state payments, 31 depending on the type of living arrangement and the geographic area in 32 which the eligible individual or the eligible couple resides: 33 (a) On and after January first, two thousand twenty-five, for an 34 eligible individual living alone, $1,054.00; and for an eligible couple 35 living alone, $1,554.00. 36 (b) On and after January first, two thousand twenty-five, for an 37 eligible individual living with others with or without in-kind income, 38 $990.00; and for an eligible couple living with others with or without 39 in-kind income, $1,496.00. 40 (c) On and after January first, two thousand twenty-five, (i) for an 41 eligible individual receiving family care, $1,233.48 if such individual 42 is receiving such care in the city of New York, the city of Staten 43 Island or the county of Nassau, Suffolk, Westchester or Rockland; and 44 (ii) for an eligible couple receiving family care in the city of New 45 York, the city of Staten Island or the county of Nassau, Suffolk, West- 46 chester or Rockland, two times the amount set forth in subparagraph (i) 47 of this paragraph; or (iii) for an eligible individual receiving such 48 care in any other county in the state, $1,195.48; and (iv) for an eligi- 49 ble couple receiving such care in any other county in the state, two 50 times the amount set forth in subparagraph (iii) of this paragraph. 51 (d) On and after January first, two thousand twenty-five, (i) for an 52 eligible individual receiving residential care, $1,402.00 if such indi- 53 vidual is receiving such care in the city of New York, the city of 54 Staten Island or the county of Nassau, Suffolk, Westchester or Rockland; 55 and (ii) for an eligible couple receiving residential care in the city 56 of New York, the city of Staten Island or the county of Nassau, Suffolk,

S. 8578 106 1 Westchester or Rockland, two times the amount set forth in subparagraph 2 (i) of this paragraph; or (iii) for an eligible individual receiving 3 such care in any other county in the state, $1,372.00; and (iv) for an 4 eligible couple receiving such care in any other county in the state, 5 two times the amount set forth in subparagraph (iii) of this paragraph. 6 (e) On and after January first, two thousand twenty-five, (i) for an 7 eligible individual receiving enhanced residential care, $1,661.00; and 8 (ii) for an eligible couple receiving enhanced residential care, two 9 times the amount set forth in subparagraph (i) of this paragraph. 10 (f) The amounts set forth in paragraphs (a) through (e) of this subdi- 11 vision shall be increased to reflect any increases in federal supple- 12 mental security income benefits for individuals or couples which become 13 effective on or after January first, two thousand twenty-six but prior 14 to June thirtieth, two thousand twenty-six. 15 § 8-022. Subdivision 1 of section 368-e of the social services law, as 16 amended by section 55 of part B of chapter 58 of the laws of 2009, is 17 amended to read as follows: 18 1. The department of health shall review claims for expenditures made 19 by counties, the city of Staten Island and the city of New York for 20 medical care, services and supplies which are furnished to preschool 21 children with handicapping conditions or such preschool children 22 suspected of having handicapping conditions, as such children are 23 defined in the education law. If approved by the department, payment for 24 such medical care, services and supplies which would otherwise qualify 25 for reimbursement under this title and which are furnished in accordance 26 with this title and the regulations of the department to such children, 27 shall be made in accordance with the department's approved medical 28 assistance fee schedules by payment to such county or [~~city~~] cities 29 which furnished the care, services or supplies either directly or by 30 contract. Notwithstanding any provisions of law, rule or regulation to 31 the contrary, any clinic or diagnostic and treatment center licensed 32 under article twenty-eight of the public health law, which as determined 33 by the state education department, in conjunction with the department of 34 health, has a less than arms length relationship with the provider 35 approved under section forty-four hundred ten of the education law 36 shall, subject to the approval of the department and based on standards 37 developed by the department, be authorized to directly submit such 38 claims for medical assistance, services or supplies so furnished for any 39 period beginning on or after July first, nineteen hundred ninety-seven. 40 The actual full cost of the individualized education program (IEP) 41 related services incurred by the clinic shall be reported on the New 42 York State Consolidated Fiscal Report in the education law section 43 forty-four hundred ten program cost center in which the student is 44 placed and the associated medical assistance revenue shall be reported 45 in the same manner. 46 § 8-023. Subdivision 13 of section 390 of the social services law, as 47 amended by chapter 160 of the laws of 2003, is amended to read as 48 follows: 49 13. Notwithstanding any other provision of law, this section[~~, except~~ 50 ~~for paragraph (a-1) of subdivision two-a of this section,~~] shall not 51 apply to child day care centers in the city of New York or in the city 52 of Staten Island. 53 § 9-001. Subdivision 1 of section 214 of the county law, as amended by 54 chapter 967 of the laws of 1973, is amended to read as follows: 55 1. Concurrent resolutions, election notices and official canvass. 56 The members of the county legislative body, whether such body be denomi-

S. 8578 107 1 nated board of supervisors, county legislature or otherwise, or, in the 2 [~~city~~] cities of New York and Staten Island, of the council of each such 3 city representing respectively each of the two principal political 4 parties into which the people of the state are divided, shall designate 5 annually the newspaper published within the county to publish the 6 concurrent resolutions of the legislature. Such designation shall be in 7 writing and signed by a majority of the members representing each of 8 said political parties. In making such designation, consideration shall 9 be given to the newspapers advocating the principles of such political 10 party, the support of its nominees and the extent of the circulation in 11 the county. However the fact that a newspaper is an independent newspa- 12 per not advocating the principles of any political party shall not 13 disqualify it from consideration. If there be but one newspaper 14 published in the county, such newspaper shall be designated. The desig- 15 nation shall be filed with the clerk of the county legislative body or, 16 in the [~~city~~] cities of New York and Staten Island, with the clerk of 17 the council of each such city, who shall not later than January tenth 18 cause notice of the name and address of such newspaper or newspapers to 19 be forwarded to the secretary of state. In like manner the members of 20 the county legislative body or, in the [~~city~~] cities of New York and 21 Staten Island, of the council of each such city representing each of the 22 two principal political parties into which the people of the state are 23 divided, shall designate the newspaper published within the county to 24 publish the election notices issued by the secretary of state and the 25 newspaper to publish the official canvass. In the event of a failure so 26 to designate in any year, or if either of such political parties has no 27 representatives among the body or, in the [~~city~~] cities of New York and 28 Staten Island, council membership, the last newspaper designated by the 29 members of such party shall be deemed duly designated. 30 § 9-002. Section 226-a of the county law, as added by chapter 80 of 31 the laws of 1969, is amended to read as follows: 32 § 226-a. Patriotic observances. The county legislature and/or board 33 of supervisors, as the case may be, of any county or borough outside the 34 city of New York or the city of Staten Island, is hereby authorized to 35 appropriate and set aside each year such sums it may deem proper for the 36 purpose of providing for the due and proper observance of any legal 37 holiday, including Columbus day. 38 § 9-003. Section 361-a of the county law, as amended by chapter 359 of 39 the laws of 1989, is amended to read as follows: 40 § 361-a. Expenses of boards of elections outside New York City and the 41 city of Staten Island; apportionment of. The board of elections in each 42 county, outside of the [~~city~~] cities of New York and Staten Island, on 43 or before the fifteenth day of December and not earlier than the first 44 day of October, in each year, shall certify to the clerk of the legisla- 45 tive body of the county, the total amount of the expenses of such board 46 of elections, including salaries for the preceding year, and, if the 47 legislative body of any county shall so direct, shall certify to such 48 clerk the portions of such expenses which under provisions of law are to 49 be borne by any city or cities in said county and the portion thereof 50 which is to be borne by the rest of such county and such clerk shall 51 thereupon notify the proper local official or officials, who, in spread- 52 ing upon the assessment-rolls the taxes to be levied upon the taxable 53 property in the city or any such cities, and in the rest of the county, 54 shall include in the amount so spread the amounts certified by the board 55 of elections to be borne by such city or cities, respectively, and in 56 the amount spread upon the assessment-rolls of the taxable property in

S. 8578 108 1 the several towns or other political subdivisions of the rest of the 2 county the amount so certified by said board of elections to be borne by 3 such towns or political subdivisions respectively. Whenever any addi- 4 tional expenses either for salaries or supplies in addition to the regu- 5 lar county-wide primary and election expenses are incurred by a board of 6 elections incidental to any election in any city, town or village, such 7 board of elections shall certify to the county legislative body a 8 detailed statement of such expenses and said county legislative body may 9 cause the amount thereof to be levied against such city, town or village 10 or may certify the amount thereof to such city, town or village and such 11 city, town or village shall upon such certification, include the amount 12 so certified in the next budget and tax levy and shall pay the same to 13 the county. 14 § 9-004. Subdivision 2 of section 390 of the county law, as added by 15 chapter 1 of the laws of 1951, is amended to read as follows: 16 2. Whenever a patient admitted to said hospital has local residence, 17 as defined in the public health law, in the county in which the hospital 18 is situated, [he] such patient shall be a charge upon such county. If 19 such patient admitted to said hospital has local residence in some other 20 county or in the city of New York or the city of Staten Island, [he] 21 such patient shall be a charge upon such other county or the city of New 22 York or the city of Staten Island, as the case may be, and the super- 23 intendent shall send a bill for such charge to the clerk of the board of 24 supervisors of such other county or to the comptroller of the city of 25 New York or of the city of Staten Island. Such charge shall be at a 26 rate to be fixed by the board of managers, which shall not exceed the 27 per diem per capita cost of care and treatment in said hospital, and if 28 the county operating said hospital is currently receiving state aid for 29 the care and treatment of tuberculosis patients pursuant to the public 30 health law, such charge may be an amount for each day of such patient's 31 care equivalent to the balance of the total per diem per capita cost of 32 operating such hospital during the preceding fiscal year, as computed 33 and approved by the state commissioner of health [~~pursuant to subdivi-~~ 34 ~~sion three of section fifty-four of the public health law~~]. Such bill 35 shall be audited and paid by the board of supervisors of said county, 36 except that a bill so submitted to the city of New York or the city of 37 Staten Island shall be paid by such city after audit and upon warrant of 38 the comptroller of such city. Any patient admitted to said hospital may 39 pay for [~~his~~] their care and treatment in whole or in part if [he] such 40 patient volunteers to do so. 41 § 9-005. Section 391 of the county law, as added by chapter 1 of the 42 laws of 1951, is amended to read as follows: 43 § 391. Admission of out of county patients. 1. Exclusive of the 44 city of New York and the city of Staten Island, and exclusive of coun- 45 ties served by state tuberculosis hospitals, any person in a county not 46 having a county hospital for the care and treatment of persons suffering 47 from tuberculosis may apply in person to the clerk of the board of 48 supervisors of such county or to the state commissioner of health for 49 admission to a tuberculosis hospital, providing that such person submit 50 with such application a statement signed by a reputable physician that 51 such physician has, within the ten days preceding the date of such 52 application, examined such person and that, in [~~his~~] such physician's 53 opinion, such person is suffering from tuberculosis or is suspected of 54 having tuberculosis and is in need of care and treatment therefor. Upon 55 receipt of such application, the clerk of the board of supervisors or 56 the state commissioner of health, as the case may be, shall forward the

S. 8578 109 1 same to the superintendent of any state, county or city hospital for the 2 care and treatment of tuberculosis. 3 2. Whenever the superintendent of such a hospital shall receive an 4 application for the admission of a patient in accordance with the 5 provisions of subdivision one of this section, if it appear from such 6 application that the person therein referred to is suffering from tuber- 7 culosis or is suspected of having tuberculosis and is in need of care 8 and treatment therefor, the superintendent shall notify said person to 9 appear in person at the hospital, provided there be a vacancy in such 10 hospital and there be no pending application from a patient living in 11 the county in which the hospital is located. If, upon personal examina- 12 tion of the patient, the superintendent is satisfied that such patient 13 is in need of care and treatment for tuberculosis, [he] such superinten- 14 dent shall admit [~~him~~] such patient to the hospital. Every patient so 15 admitted shall be a charge against the county in which [he] such patient 16 was living immediately prior to such admission. Such charge shall be at 17 a rate to be fixed by the board of managers, which shall not exceed the 18 per diem per capita cost of maintenance therein and any cost of trans- 19 portation to or from the hospital, except that if the county operating 20 said hospital is currently receiving state aid for the care and treat- 21 ment of tuberculosis patients pursuant to the public health law, such 22 charge shall be an amount for each day of such patient's care equivalent 23 to the balance of the total per diem per capita cost of operating such 24 hospital during the preceding fiscal year, as computed and approved by 25 the state commissioner of health [~~pursuant to subdivision three of~~ 26 ~~section fifty-four of the public health law~~]; and the bill therefor 27 shall be audited and paid by the board of supervisors of the said coun- 28 ty. However, if such patient has local residence, as defined in the 29 public health law, in some county other than the one in which [he] such 30 patient was living immediately prior to such admission or in the city of 31 New York or the city of Staten Island, [he] such patient shall be a 32 charge upon such other county or the city of New York or the city of 33 Staten Island, as the case may be, and in this event any amounts for the 34 cost of such care and treatment which shall have been paid by the county 35 from which [he] such patient was admitted shall be charged back and 36 reimbursed to such county by the aforesaid other county or the city of 37 New York or the city of Staten Island in which the patient has local 38 residence. Any patient admitted to a hospital in accordance with the 39 provisions of subdivision one of this section may pay for [~~his~~] their 40 care and treatment in whole or in part if [he] such patient volunteers 41 to do so. 42 § 9-006. Section 901 of the county law is amended by adding a new 43 subdivision 1-a to read as follows: 44 1-a. The commissioner of corrections of the city of Staten Island 45 shall have custody of the civil jails and persons lawfully committed to 46 such commissioner's custody and such jails shall be kept by them, or by 47 keepers appointed by such commissioner, for whose acts they shall be 48 responsible. 49 § 9-007. Subdivision 1 of section 902 of the county law, as amended by 50 chapter 950 of the laws of 1956, is amended to read as follows: 51 1. The offices of the county clerk in the counties constituting the 52 city of New York and the office of the Richmond county clerk shall 53 remain open for the transaction of business from nine o'clock in the 54 forenoon to four o'clock in the afternoon every day except Saturdays, 55 Sundays and holidays and except in the months of July and August when 56 said offices shall remain open for the transaction of business from nine

S. 8578 110 1 o'clock in the forenoon to two o'clock in the afternoon except Satur- 2 days, Sundays and holidays. 3 § 9-008. Section 904 of the county law, as amended by chapter 655 of 4 the laws of 1978, is amended to read as follows: 5 § 904. Court and trust fund register and liability of officers. The 6 county clerks of the counties comprising the city of New York and the 7 Richmond county clerk shall perform the same duties and shall be subject 8 to the same penalties imposed by the provisions of this chapter upon 9 other county clerks of the state with relation to court and trust fund 10 registers and the delivery of property or moneys to the commissioner of 11 finance in pursuance of any judgment, decree or order of a court of 12 record of this state. 13 § 9-009. The county law is amended by adding a new section 905-a to 14 read as follows: 15 § 905-a. Liability for loss of court and trust funds in the city of 16 Staten Island. The officer responsible for collection and management of 17 public funds for the city of Staten Island and such officer's surety or 18 sureties shall be liable in the same manner as county treasurers are 19 made liable under the provisions of this chapter for the loss of court 20 and trust funds. 21 § 9-010. The county law is amended by adding a new section 906-a to 22 read as follows: 23 § 906-a. Liability of city of Staten Island for loss of court and 24 trust funds. The city of Staten Island shall be responsible for all 25 property or moneys deposited with the officer responsible for collection 26 and management of public funds for the city of Staten Island by virtue 27 of any judgment, decree or order of a court of record in this state 28 provided, however, that the city shall not be held liable for any loss 29 due to the depreciated value of an investment legal at the time of its 30 purchase and which continued to be a legal investment during the period 31 of the trust. An action to recover any loss to or of such fund may be 32 brought against the city by any party aggrieved or by the state comp- 33 troller in a court of competent jurisdiction. 34 § 9-011. The county law is amended by adding a new section 931-a to 35 read as follows: 36 § 931-a. Employees of the district attorney of the county of Rich- 37 mond. The district attorney of Richmond county is vested with the power 38 to appoint any person to any position for which there is now provision 39 by appropriation or which shall hereafter be established. All positions 40 in the district attorney's office of Richmond county for which there is 41 now provision by appropriation shall be continued, except that the mayor 42 of the city of Staten Island may with the consent of the district attor- 43 ney increase or decrease the number of positions and the term, grade, 44 salary and compensation of any position. 45 § 9-012. The county law is amended by adding a new section 944 to read 46 as follows: 47 § 944. Applicability of article to the county of Richmond. For the 48 purposes of continuing the application of this article within the city 49 of Staten Island on and after the date of establishment of the city of 50 Staten Island, the county of Richmond shall be deemed to continue as a 51 county within the city of New York for the purposes of exercising those 52 powers and duties devolved upon said county of Richmond pursuant to this 53 article. 54 § 9-013. Subdivision 2 and paragraphs (a) and (c) of subdivision 3 of 55 section 9-124 of the election law, subdivision 2 as amended by chapter 56 437 of the laws of 2019, paragraphs (a) and (c) of subdivision 3 as

S. 8578 111 1 amended by chapter 481 of the laws of 2023, are amended to read as 2 follows: 3 2. Each box, envelope, or container containing the ballots and stubs, 4 if any, and all items described in subdivision one of this section shall 5 be deposited by an inspector designated for that purpose with the offi- 6 cer or board from whom or which the board of inspectors received it. In 7 the city of New York and the city of Staten Island, every such box, 8 envelope, or container shall be delivered at the polling place to police 9 or peace officers designated by the police commissioner of such [~~city~~] 10 cities, who shall deposit them with the appropriate board of elections. 11 (a) Except in the city of New York or the city of Staten Island, the 12 registration poll records or computer generated registration lists, the 13 returns of canvass with results tapes and tally sheets, if any, annexed, 14 the voted ballots, stubs, opened packages of unused ballots and ballot 15 envelopes, any early mail, absentee, military, special federal, or 16 special presidential ballots which may have been delivered to the poll 17 site during election day, the challenge report records, keys and the 18 package of protested and void ballots shall be filed with the appropri- 19 ate board of elections. 20 (c) In the city of New York and the city of Staten Island, the board 21 of inspectors shall deliver to police or peace officers designated by 22 the police commissioner of such [~~city~~] cities, at the polling place the 23 registration poll records or computer generated registration lists, 24 challenge report, records, keys, other election supplies, including two 25 copies of the returns of the canvass and any early mail, absentee, mili- 26 tary, special federal, or special presidential ballots which may have 27 been delivered to the poll site during election day, voted ballots, 28 stubs, open packages of unused ballots and ballot envelopes. Such police 29 or peace officers shall file the returns, the package of void and 30 protested ballots, if any, and the early mail, absentee, military, 31 special federal, or special presidential ballots which may have been 32 delivered to the poll site during election day; and emergency ballots, 33 stubs and ballot envelopes, if any, within twenty-four hours after the 34 close of the polls, in the office of the appropriate board of elections 35 or its branch office within the borough, as the case may be. 36 § 9-014. Subdivision 3 of section 9-124 of the election law is amended 37 by adding a new paragraph (d) to read as follows: 38 (d) In the city of Staten Island the board of inspectors, shall deliv- 39 er to the police or peace officer at the polling place the registration 40 poll records or computer generated registration lists, challenge report, 41 records, keys, the flag, other election supplies, the returns of the 42 canvass and the absentee and military, special federal, special presi- 43 dential and emergency ballots, stubs and ballot envelopes. The police 44 or peace officer shall file the returns, the package of void, protested 45 and wholly blank ballots, if any, and the absentee and military, special 46 federal, special presidential and emergency ballots, stubs and ballot 47 envelopes, if any, within twenty-four hours after the close of the 48 polls, in the office of the board of elections. 49 § 9-015. Section 88-b of the state finance law, as added by chapter 13 50 of the laws of 1987, subdivisions 2 and 6 as amended by chapter 65 of 51 the laws of 1988, is amended to read as follows: 52 § 88-b. Suburban transportation fund. 1. There is hereby established 53 in the joint custody of the commissioner of taxation and finance and the 54 comptroller a fund to be known as the "suburban transportation fund". 55 2. The suburban transportation fund shall consist of moneys from the 56 commuter railroad account of the metropolitan transportation authority

S. 8578 112 1 special assistance fund required to be paid by such authority to the 2 suburban transportation fund pursuant to subdivision three of section 3 twelve hundred seventy-a of the public authorities law and any moneys 4 from the metropolitan transportation authority Dutchess, Orange and 5 Rockland fund transferred pursuant to subdivision four of section twelve 6 hundred seventy-a of the public authorities law. 7 3. Moneys in the suburban transportation fund shall be kept separate 8 from and shall not be commingled with any other moneys in the custody of 9 the commissioner of taxation and finance and the comptroller. All depos- 10 its of such money shall, if required by the comptroller, be secured by 11 obligations of the United States or of the state of market value equal 12 at all times to the amount of the deposit and all banks and trust compa- 13 nies are authorized to give such securities for such deposits. 14 4. Moneys of the fund shall be made available for financing any of the 15 following types of capital projects within the counties comprising the 16 metropolitan commuter transportation district, except those counties 17 comprising the city of New York or the city of Staten Island, but only 18 to the extent that such projects are on an adopted transportation plan 19 and approved by a designated transportation coordinating committee, if 20 one exists, or by the metropolitan planning organization as created 21 pursuant to section fifteen-a of the transportation law if no designated 22 transportation coordinating committee exists: capacity and infrastruc- 23 ture improvements to state, county, town, city, village roads, highways, 24 parkways and bridges; or state, county, town, city or village mass 25 transportation projects; provided, however, that in Nassau and Suffolk 26 counties such moneys shall be available only for capacity improvements 27 to state roads, highways, parkways and bridges. The amount of state 28 funds historically appropriated statewide, other than bond funds, for 29 transportation capital purposes from other sources shall not be reduced 30 because of the availability of such moneys made available pursuant to 31 this chapter, nor shall such moneys be used to match federal aid. Prior 32 to the allocation of state advance funds appropriated pursuant to this 33 section, the municipality responsible for the project shall certify to 34 the commissioner of transportation that the amount of funds appropriated 35 for transportation capital purposes by that municipality shall not be 36 reduced because of the availability of such state advance funds, and 37 that such moneys shall not be used to match federal aid. 38 The designated transportation coordinating committee, if one exists, 39 or the metropolitan planning organization if no designated transporta- 40 tion coordinating committee exists, shall notify the municipalities 41 within its jurisdiction of which projects it has approved. 42 5. In the event that any county withdraws from the metropolitan commu- 43 ter transportation district, the withdrawing county shall pay to the 44 state comptroller any amount that is required so that the state is fully 45 reimbursed for funds advanced in anticipation of reimbursement from the 46 suburban transportation fund. In the event that any withdrawing county 47 shall fail to make a payment pursuant to this subdivision, the state 48 comptroller shall withhold and pay to the capital projects fund an 49 amount equal to the amount owed from the next general or specific state 50 aid payment and scheduled to be paid to that county. 51 6. Moneys in the suburban transportation fund transferred pursuant to 52 section twelve hundred seventy-a of the public authorities law shall be 53 made available to the state department of transportation for capital 54 projects in the counties of Nassau, Suffolk, Westchester, Putnam, Dutch- 55 ess, Orange and Rockland on the basis of each county's average pro rata 56 share of the mortgage recording tax receipts raised in such counties

S. 8578 113 1 pursuant to subdivision one of section two hundred sixty-one of the tax 2 law during the period January first, nineteen hundred eighty-four 3 through December thirty-first, nineteen hundred eighty-six as certified 4 by the metropolitan transportation authority. Moneys transferred to the 5 suburban transportation fund at the request of Dutchess, Orange or Rock- 6 land county pursuant to subdivision three of section twelve hundred 7 seventy-b of the public authorities law shall be used by the state 8 department of transportation to increase the proportionate share of such 9 capital projects in such county. Such projects shall be financed by 10 means of a state advance to be reimbursed by the New York state thruway 11 authority, or its successor agency, through the issuance of its bonds or 12 notes in the manner set forth in subdivision seven of this section, or 13 by means of a state advance to be reimbursed directly from the suburban 14 transportation fund. 15 7. (a) For projects funded by the suburban transportation fund, the 16 state department of transportation may enter into an agreement with the 17 New York state thruway authority, or its successor agency, for the 18 purpose of having the thruway authority, or its successor agency, issue 19 bonds or notes to pay the capital costs of such project. Such agreement 20 shall be subject to approval by the director of the division of the 21 budget. 22 (b) For projects funded pursuant to this subdivision, the affected 23 municipality shall enter into an agreement with the department of trans- 24 portation for the conveyance of all affected real property including 25 highways, roads and bridges to the thruway authority, or its successor 26 agency, for the term of the bonds or notes issued by the thruway author- 27 ity, or its successor agency, for such project or for such lesser period 28 that such bonds or notes are outstanding. During the period of such 29 conveyance to the thruway authority, or its successor agency, the 30 department of transportation or the municipality shall agree to maintain 31 the facility in a state of good repair, the responsibility for which 32 shall be with the state, or municipality, which had jurisdiction over 33 said facility prior to such agreement. 34 (c) Upon the final retirement of all bonds and notes issued by the 35 thruway authority, or its successor agency, for such purpose, such prop- 36 erty shall automatically revert to the conveying entity. 37 8. Payments to the thruway authority, or its successor agency, pursu- 38 ant to this section shall be subject to appropriation from the suburban 39 transportation fund. The thruway authority, or its successor agency, 40 shall utilize such moneys to pay the debt service on such bonds or notes 41 and to meet administrative costs in connection therewith. 42 § 9-016. Section 2302 of the surrogate's court procedure act, as 43 amended by chapter 460 of the laws of 1999, is amended to read as 44 follows: 45 § 2302. Award of costs and allowances 46 1. Upon a motion the court may award costs to any party in such 47 amount as it determines not exceeding $20 to each party, except in coun- 48 ties within the City of New York and in the city of Staten Island, where 49 such amount shall not exceed $40. 50 2. Upon rendering a decree or in granting or denying an application 51 to vacate a decree the court may award as costs such sum as it deems 52 reasonable to the petitioner and to any other party who has succeeded in 53 whole or in part in a contest or whose attorney, in the absence of a 54 contest, has rendered services of substantial benefit to him, her or it, 55 or to the estate, not exceeding

S. 8578 114 1 (a) in counties within the City of New York and in the city of Staten 2 Island: 3 (i) $100 where there has not been a contest, or 4 (ii) $300 where there has been a contest and $300 for each day, less 5 one, necessarily occupied in the trial or hearing and in addition $100 6 for each day necessarily occupied in preparing therefore and $100 addi- 7 tional if a motion for a new trial is granted. 8 (b) in all other counties: 9 (i) $50 where there has not been a contest, or 10 (ii) $150 where there has been a contest and $150 for each day, less 11 one, necessarily occupied in the trial or hearing and in addition $50 12 for each day necessarily occupied in preparing therefore and $50 addi- 13 tional if a motion for a new trial is granted. 14 3. In a contested probate proceeding: 15 (a) Costs payable out of the estate or otherwise may be awarded (1) to 16 an unsuccessful contestant only if [~~he, she or it~~] such contestant be a 17 guardian ad litem or guardian, committee or conservator of a person 18 under disability; (2) to an unsuccessful proponent named as executor in 19 the will when propounded by [~~him, her or it~~] such proponent in good 20 faith as the last will of the decedent; and (3) to a person named as 21 executor in a prior will on file in the court that is not admitted to 22 probate when such person participates in the proceeding in good faith. 23 Such nominated executor, guardian ad litem, guardian, committee or 24 conservator, whether successful or not may be awarded costs and an 25 allowance in such sum as the court deems reasonable for [~~his, her or~~ 26 ~~its~~] their counsel fees and other expenses incurred in the contest or 27 attempt to sustain the will. The court may direct that such costs and 28 allowances in whole or in part be payable by an unsuccessful contestant 29 except that an award of the successful proponent's counsel's fees may 30 only be allowed where the court finds that the contest was brought in 31 bad faith or was frivolous. 32 (b) Either before or after the decree granting probate the court may 33 order that a copy of the minutes of the trial be furnished to a contes- 34 tant for the purposes of appeal and charge the expense thereof initially 35 to the estate if satisfied that the contest is in good faith. If the 36 contestant be unsuccessful upon the appeal and [~~he, she or it~~] such 37 contestant is not the guardian of an infant, the committee of an incom- 38 petent, the conservator of a conservatee or a guardian ad litem [~~he, she~~ 39 ~~or it~~] such contestant shall refund to the estate any amount so paid by 40 the estate for the minutes. 41 4. In a proceeding for probate of a will when the public administra- 42 tor or county treasurer has been directed to probate a will or continue 43 the proceedings for the probate thereof, the court may award to either 44 of them such sum as it deems reasonable for [~~his, her or its~~] their 45 counsel fees and other expenses necessarily incurred therein. 46 5. After appeal, pursuant to the direction of the appellate court the 47 court may award a fiduciary such sum as it deems reasonable for counsel 48 fees and other expenses necessarily incurred on the appeal. 49 6. In a proceeding to construe a will or after appeal in such a 50 proceeding, pursuant to the direction of the appellate court the court 51 may award to a fiduciary or any party to the proceeding such sum as it 52 deems reasonable for [~~his, her or its~~] their counsel fees and other 53 expenses necessarily incurred in the proceeding or on the appeal. 54 7. Upon a final or intermediate judicial settlement a fiduciary may 55 be awarded for [~~his, her or its~~] such fiduciary's expenses and counsel 56 fees such sum as the court deems reasonable not exceeding:

S. 8578 115 1 (a) within the counties of the City of New York and in the city of 2 Staten Island: $100 for each day necessarily occupied in preparing the 3 account and in drawing, entering and executing the decree. Any sum so 4 awarded may be in addition to any costs, allowances or commissions 5 otherwise authorized and awarded by the court. 6 (b) in all other counties: $ 50 for each day necessarily occupied in 7 preparing the account and in drawing, entering and executing the decree. 8 Any sum so awarded may be in addition to any costs, allowances or 9 commissions otherwise authorized and awarded by the court. 10 8. In a proceeding for disposition of real property a fiduciary may 11 be awarded out of the proceeds of sale [~~his, her or its~~] such 12 fiduciary's commissions and such sum as the court deems reasonable for 13 counsel fees and expenses necessarily incurred in the proceeding. 14 § 9-017. The general municipal law is amended by adding a new section 15 929 to read as follows: 16 § 929. City of Staten Island industrial development agency. (a) 17 Legislative intent. It is the policy and intent of the city of Staten 18 Island to promote the economic welfare of its inhabitants and to active- 19 ly promote, attract, encourage and develop economically sound commerce 20 and industry through governmental action for the purpose of preventing 21 unemployment and economic deterioration by the creation of a city of 22 Staten Island industrial development agency. It is recognized that the 23 viability and integrity of the residential communities in the city of 24 Staten Island should be protected and maintained so that no person be 25 deprived of their place of residence by any condemnation for economic or 26 industrial development undertaken pursuant to this article. 27 (b) For the purpose of this section "city" means the city of Staten 28 Island. 29 (c) For the benefit of the city and the inhabitants thereof an indus- 30 trial development agency, to be known as the city of Staten Island 31 industrial development agency, is hereby established for the accomplish- 32 ment of any or all of the purposes specified in title one of this arti- 33 cle, except that it shall not have the power to construct or rehabili- 34 tate any residential facility or housing of any nature and kind 35 whatsoever, nor shall it use any of its funds to further the 36 construction or rehabilitation of any residential facility or housing of 37 any nature and kind whatsoever. It shall constitute a body corporate 38 and politic, and be perpetual in duration. It shall only have the 39 powers and duties conferred by title one of this article upon industrial 40 development agencies as of January first, nineteen hundred seventy-three 41 except it shall not have the power of condemnation. In the exercise of 42 the powers conferred upon such agency with respect to the acquisition of 43 real property by this article such agency shall be limited to the 44 geographical jurisdictional limits of the city. 45 (d) It shall be organized in a manner prescribed by and be subject to 46 the provisions of title one of this article, except that its board shall 47 consist of ten members. Among its membership shall be the city comp- 48 troller, the city commissioner of economic development, the corporation 49 counsel of such city and the director of the city planning commission of 50 such city, each of whom shall have the power to designate an alternate 51 to represent them at board meetings with all the rights and powers, 52 including the right to vote, reserved to all board members, provided 53 that such designation be in writing to the chairperson of the board. 54 The remaining six members shall be appointed by the mayor of such city. 55 (e) The mayor shall designate the chairperson of the board, who shall 56 serve at the pleasure of the mayor.

S. 8578 116 1 (f) The terms of the directors first appointed by the mayor, other 2 than the chairperson of the board shall be as follows: 3 (1) two shall serve for terms of one year each; 4 (2) two shall serve for terms of two years each; 5 (3) two shall serve for terms of three years each, thereafter the 6 successors of all such directors shall serve for terms of three years 7 each. The mayor shall fill any vacancy which may occur by reason of 8 death, resignation, or otherwise in a manner consistent with the 9 original appointment. Members may be removed by the mayor for cause 10 after a hearing upon ten days' written notice. Such members shall 11 receive no compensation for their services but shall be entitled to the 12 necessary expenses, including traveling expenses, incurred in the 13 discharge of their duties. 14 (g) The chief executive officer of the agency shall be appointed by a 15 two-thirds vote of the board of directors. 16 (h) The agency, its members, officers, and employees, shall be 17 subject to article fourteen of the civil service law and for all such 18 purposes the agency shall be deemed the "public employer" and its 19 members, officers and employees shall be deemed "public employees". 20 (i) The city shall have the power to make, or contract to make grants 21 or loans including, but not limited to grants or loans of money, to the 22 agency in such amounts, upon such terms and conditions and for such 23 period or periods of time as in the judgment of the city and the agency 24 are necessary or appropriate for the accomplishment of any of the 25 purposes of the agency. 26 (j) The city shall have the power to condemn property for transfer to 27 the city of Staten Island industrial development agency under title one 28 of this article upon the request of two-thirds of the members of the 29 board of directors of the city of Staten Island industrial development 30 agency. No property shall be condemned on behalf of the agency which is 31 zoned "residential" as defined in the zoning resolution of the city, if 32 any, or which is occupied in whole or in part as a dwelling or resi- 33 dence. 34 (k) For the purpose of this section "governing body" as used in title 35 one of this article shall mean the mayor of the city. Except as other- 36 wise provided in this section, the agency, its members, officers and 37 employees, and its operations and activities shall be governed by the 38 provisions of title one of this article. 39 (l) The city shall save harmless and indemnify any person who is 40 serving or has served as a director or officer or as employee of the 41 city of Staten Island industrial development agency against any finan- 42 cial loss arising out of or in connection with any claim, demand, suit 43 or judgment, based on a cause of action involving allegations that pecu- 44 niary harm was sustained by any person as a result of any transaction, 45 act or omission to act of the city of Staten Island industrial develop- 46 ment agency or of any action or inaction or vote of any director, offi- 47 cer or employee of such agency unless such individual is found by a 48 final judicial determination not to have acted in good faith for a 49 purpose such individual reasonably believed to be in the best interests 50 of the agency or not to have had reasonable cause to believe that such 51 conduct was lawful. Provided, however, that such individual must trans- 52 mit to the corporation counsel of the city of Staten Island any notice 53 of claim, summons or complaint or other analogous paper served on such 54 individual within ten days of its receipt unless prevented from doing so 55 by compelling circumstances. The corporation counsel shall, without 56 charge, represent any such individual unless unable to do so by reason

S. 8578 117 1 of conflict of interest. In the event that the corporation counsel is 2 unable to give such representation, the city of Staten Island shall 3 indemnify the individual for any reasonable litigation expense incurred 4 by such individual. 5 § 10-001. Legislative findings. It is the intention of the legisla- 6 ture that the incorporation of the city of Staten Island shall not alter 7 the existing landlord-tenant relationships within such city and that the 8 state and local laws regulating landlord-tenant relationships such as 9 legal regulated rents, maximum rents and tenancy issues shall continue 10 to provide such regulation until superseded by state law or local law of 11 the city of Staten Island and in accordance with such intent, such laws 12 and regulations are hereby continued. It is further provided that all 13 real property tax exemptions provided under article 4 of the real prop- 14 erty tax law shall be continued as shall all rent regulations and other 15 regulations and duties imposed on the owners of property receiving 16 exemptions pursuant to such article until superseded by state law or 17 local law of the city of Staten Island. 18 § 10-002. Section 1 of chapter 21 of the laws of 1962, constituting 19 the local emergency housing rent control act, is amended by adding a new 20 subdivision 2-a to read as follows: 21 2-a. Applicability. For the purposes of this act, a city which is 22 incorporated on or after the first of January next succeeding the date 23 on which this subdivision shall have become a law and which is comprised 24 of a geographical area with respect to which provisions of this act were 25 in effect on the date immediately prior to such incorporation and which 26 city had been wholly contained within a city with a population of one 27 million or more shall continue to be treated as a city with a population 28 of one million or more. 29 § 10-003. Section 4 of section 4 of chapter 576 of the laws of 1974, 30 constituting the emergency tenant protection act of nineteen seventy- 31 four, is amended by adding a new subdivision f to read as follows: 32 f. In the city of Staten Island, the rent guidelines board shall be 33 the rent guidelines board established pursuant to the local law enacted 34 as a successor to the New York city rent stabilization law of nineteen 35 hundred sixty-nine and provided with such powers under such local law. 36 § 10-004. Subdivision b of section 14 of section 4 of chapter 576 of 37 the laws of 1974, constituting the emergency tenant protection act of 38 nineteen seventy-four, is relettered subdivision c and a new subdivision 39 b is added to read as follows: 40 b. in the city of Staten Island; provided that for the purposes of 41 this act, the city of Staten Island shall continue to be treated as a 42 city with a population of one million or more and the reference to any 43 local law applicable to the geographical area of such city prior to its 44 incorporation shall refer to the appropriate successor legislation 45 enacted by the city of Staten Island; and 46 § 10-005. The section heading and subdivision 8 of section 352-eeee of 47 the general business law, as amended by section 1 of part N of chapter 48 36 of the laws of 2019, are amended to read as follows: 49 Conversions to cooperative or condominium ownership in the city of New 50 York or in the city of Staten Island. 51 8. The provisions of this section shall only be applicable in the city 52 of New York and the city of Staten Island. 53 § 10-006. Section 467-b of the real property tax law is amended by 54 adding a new subdivision 14 to read as follows: 55 14. For the purposes of this section, the city of Staten Island shall 56 continue to be treated as a city with a population of one million or

S. 8578 118 1 more and any reference to a local law enacted pursuant to the local 2 emergency housing rent control act shall also refer to the successor 3 local law enacted by the city of Staten Island. 4 § 10-007. The real property tax law is amended by adding a new section 5 498 to read as follows: 6 § 498. City of Staten Island. For the purposes of this article, the 7 city of Staten Island shall continue to be treated as a city with a 8 population of one million or more and the reference to any local law 9 applicable to the geographical area of such city prior to its incorpo- 10 ration shall be deemed to refer to the appropriate successor legislation 11 enacted by the city of Staten Island. 12 § 10-008. Applicability. It is the intention of the legislature that 13 the state and local laws regulating landlord-tenant relationships such 14 as legal regulated rents, maximum rents and tenancy issues shall contin- 15 ue to provide such regulation; provided, however, that within one 16 hundred twenty days after the date of establishment of the city of 17 Staten Island, the common council of such city must make a determination 18 of whether or not a public emergency exists requiring the continuation 19 of such regulations. 20 § 11-001. Legislative findings. The legislature recognizes that the 21 formation of the city of Staten Island was not contemplated in the 22 establishment of the constitutional real property tax limitations. To 23 the greatest extent practicable, the establishment of the city of Staten 24 Island is formulated to preserve existing local laws, regulations and 25 instrumentalities of government to preserve the status quo and prevent a 26 disruption of government injurious to the public good. 27 The unique factor which determined the establishment of the constitu- 28 tional real property tax limits for the city of New York was the inclu- 29 sion of counties wholly within the city with the city assuming the 30 responsibilities and expenditures for functions normally exercised by 31 the counties in areas outside the city of New York. Staten Island will 32 now share this unique factor with New York city, as the county of Rich- 33 mond is wholly contained within the city of Staten Island. 34 Real property located in cities outside the city of New York is 35 subject to a real property tax limit of four percent, of which two 36 percent is city tax and two percent is county tax. Real property located 37 within New York city is subject to a more restrictive real property tax 38 limit of two and one-half percent, all of which is city tax. County real 39 property tax is not permitted within the city of New York. 40 The people of the city of Staten Island and county of Richmond and the 41 New York state legislature have adopted a charter for the city of Staten 42 Island which continues the New York city form of government placing 43 governmental responsibility on the city rather than the county. The 44 county of Richmond has not assumed new responsibilities justifying an 45 interpretation of the constitutional real property tax limits which 46 would permit the county of Richmond to impose a real property tax. Like- 47 wise the maintenance of the New York city form of government with the 48 usual county responsibilities being a function of city government when 49 combined with the prohibition of a county real property tax, requires an 50 interpretation providing a city real property tax limit of two and one- 51 half percent for the city of Staten Island. 52 Therefore the legislature finds and declares that the existing more 53 restrictive real property tax limits for real property located within 54 the county of Richmond remain in effect, providing a city real property 55 tax limit of two and one-half percent for the city of Staten Island and

S. 8578 119 1 prohibiting the imposition of a real property tax by the county of Rich- 2 mond. 3 § 12-001. Subdivision (a) of section 1107 of the tax law, as amended 4 by section 1 of part C of chapter 407 of the laws of 1999, is amended to 5 read as follows: 6 (a) General. On the first day of the first month following the month 7 in which a municipal assistance corporation is created under article ten 8 of the public authorities law for a city of one million or more, in 9 addition to the taxes imposed by sections eleven hundred five and eleven 10 hundred ten, there is hereby imposed on such date, within the territo- 11 rial limits of such city (including, in the case of the municipal 12 assistance corporation for the city of New York, the city of Staten 13 Island), and there shall be paid, additional taxes, at the rate of four 14 percent, which except as provided in subdivision (b) of this section, 15 shall be identical to the taxes imposed by sections eleven hundred five 16 and eleven hundred ten. Such sections and the other sections of this 17 article, including the definition and exemption provisions, shall apply 18 for purposes of the taxes imposed by this section in the same manner and 19 with the same force and effect as if the language of those sections had 20 been incorporated in full into this section and had expressly referred 21 to the taxes imposed by this section. 22 § 12-002. Subdivision (c) of section 1107 of the tax law, as amended 23 by chapter 588 of the laws of 2000, is amended to read as follows: 24 (c) Tax on sale of service of parking, garaging or storing of motor 25 vehicles. On the first day of the first month following the month in 26 which a municipal assistance corporation is created under article ten of 27 the public authorities law for a city of one million or more, in addi- 28 tion to the taxes imposed by sections eleven hundred five, eleven 29 hundred ten and subdivision (a) of this section, there is hereby imposed 30 on such date, within the territorial limits of such city (including, in 31 the case of the municipal assistance corporation for the city of New 32 York, the city of Staten Island), and there shall be paid, additional 33 taxes at the rate of six percent on receipts from every sale of the 34 service of providing parking, garaging or storing for motor vehicles by 35 persons operating a garage (other than a garage which is part of prem- 36 ises occupied solely as a private one or two family dwelling), parking 37 lot or other place of business engaged in providing parking, garaging or 38 storing of motor vehicles provided, however, that this subdivision shall 39 not apply to such facilities owned and operated by such city or an agen- 40 cy or instrumentality of such city or a public corporation the majority 41 of whose members are appointed by the chief executive officer of such 42 city or the legislative body of such city or both of them; provided, 43 however, that receipts for such services paid to a homeowner's associ- 44 ation by its members or receipts paid by members of a homeowner's asso- 45 ciation to a person leasing the parking facility from the homeowner's 46 association shall not be subject to the tax imposed by this subdivision. 47 For purposes of this subdivision, a homeowner's association is an asso- 48 ciation (including a cooperative housing or apartment corporation) (i) 49 the membership of which is comprised exclusively of owners or residents 50 of residential dwelling units, including owners of units in a condomin- 51 ium, and including shareholders in a cooperative housing or apartment 52 corporation, where such units are located in a defined geographical area 53 such as a housing development or subdivision; and (ii) which owns or 54 operates a garage, parking lot or other place of business engaged in 55 providing parking, garaging or storing for motor vehicles located in 56 such area for use (whether or not exclusive) by such owners or resi-

S. 8578 120 1 dents. All provisions set forth in this article applicable to the taxes 2 imposed under section eleven hundred five, including the definition and 3 exemption provisions of this article, shall apply with respect to a tax 4 imposed under this subdivision, except as to rate and except as other- 5 wise provided herein. The transitional provisions contained in section 6 eleven hundred six shall not apply to the taxes imposed by this section. 7 § 12-003. Intentionally omitted. 8 § 12-004. Section 1210 of the tax law is amended by adding two new 9 subdivisions (k) and (l) to read as follows: 10 (k) In the case of the municipal assistance corporation for the city 11 of New York the power of the city of Staten Island to adopt and amend 12 local laws, ordinances or resolutions imposing taxes pursuant to the 13 authority of such section shall, notwithstanding any provisions of arti- 14 cle twenty-nine of this chapter to the contrary, be suspended until all 15 the notes and bonds of such municipal assistance corporation shall have 16 been fully paid and discharged together with interest on unpaid install- 17 ments of interest. 18 (l) Notwithstanding the provisions of subdivision (k) of this section, 19 the city of Staten Island is hereby authorized and empowered to adopt 20 and amend local laws, imposing taxes, at a rate not to exceed two 21 percent on the receipts of sales from the services of laundering, dry- 22 cleaning, tailoring, weaving, pressing, shoe repairing and shoe shining, 23 and charges to a patron for admission to, or use of, facilities for 24 sporting activities in which the patron is to be a participant such as 25 bowling alleys and swimming pools. Such taxes shall be administered, 26 collected and distributed by the state tax commission as provided in 27 subpart B of part three and in part four of this article. 28 § 12-005. Subdivisions 3 and 4 of section 92-d of the state finance 29 law, subdivision 3 as amended by section 4 of part A of chapter 88 of 30 the laws of 2000 and subdivision 4 as amended by section 11 of part SS1 31 of chapter 57 of the laws of 2008, are amended to read as follows: 32 3. The taxes, interest and penalties imposed, pursuant to sections 33 eleven hundred seven or eleven hundred eight (as the case may be) of the 34 tax law within the territorial limits of a city in aid of which a munic- 35 ipal assistance corporation has been created (including, in the case of 36 the municipal assistance corporation for the city of New York, the city 37 of Staten Island), and received by the commissioner of taxation and 38 finance, after deducting the amount which the commissioner of taxation 39 and finance shall determine to be necessary for reasonable costs of the 40 commissioner of taxation and finance in administering, collecting and 41 distributing such taxes, shall be appropriated (i) to the municipal 42 assistance corporation which has been created in aid of such city in 43 order to enable such corporation to fulfill the terms of any agreements 44 made with the holders of its notes and bonds and to carry out its corpo- 45 rate purposes, including the maintenance of the capital reserve fund, 46 and (ii) the balance, if any, to the city in aid of which such corpo- 47 ration has been created, or to a public benefit corporation to which the 48 tax may be otherwise payable pursuant to law, as hereinafter provided. 49 Notwithstanding the provisions of this subdivision, in the case of the 50 municipal assistance corporation for the city of New York, such balance, 51 if any, shall be divided between the city of New York and the city of 52 Staten Island and paid, as hereinafter provided. 53 4. On or before the twelfth day of each month, the commissioner of 54 taxation and finance shall certify to the comptroller the amount of all 55 revenues so received during the prior month as a result of the taxes, 56 interest and penalties so imposed and in addition on or before the last

S. 8578 121 1 day of June the commissioner shall certify the amount of such revenues 2 received during and including the first twenty-five days of June. In 3 the case of the municipal assistance corporation for the city of New 4 York, the commissioner of taxation and finance shall certify separately 5 the amounts of such revenues received from within the territorial limits 6 of the city of New York and the territorial limits of the city of Staten 7 Island. The amount of revenues so certified shall be deposited by the 8 comptroller in the municipal assistance tax fund and the amount attrib- 9 utable to the taxes, interest and penalties imposed within the territo- 10 rial limits of a city in aid of which a municipal assistance corporation 11 has been created including, in the case of the municipal assistance 12 corporation for the city of New York, the city of Staten Island shall be 13 credited to a special account established in such fund for such corpo- 14 ration. Notwithstanding the foregoing provisions, the commissioner of 15 taxation and finance may prorate revenue attributable to the first or 16 last quarterly return period during which the taxes imposed by section 17 eleven hundred seven or eleven hundred eight (as the case may be) of the 18 tax law apply so as to separate from the revenue collected for that 19 quarter pursuant to such taxes the revenue collected pursuant to local 20 legislation adopted by a city pursuant to section twelve hundred ten or 21 twelve hundred twelve-A of the tax law. Such a proration by the commis- 22 sioner of taxation and finance shall be made on the basis of the ratio 23 of the number of months during which such taxes were imposed during such 24 quarterly return period to the total number of months in such quarterly 25 return period when such proration is reasonably necessary to ascertain 26 the amount of such money which must be deposited by the comptroller in 27 such special account and the amount of such money which must be deposit- 28 ed pursuant to section twelve hundred sixty-one of the tax law. The 29 commissioner of taxation and finance shall not be held liable for any 30 inaccuracy in any certification under this subdivision. 31 § 12-006. Subdivision 6 of section 92-d of the state finance law, as 32 amended by section 4 of part A of chapter 88 of the laws of 2000, is 33 amended to read as follows: 34 6. Upon receipt by the comptroller of a certificate or certificates 35 from the [~~chairman~~] chairperson of a municipal assistance corporation 36 that such corporation requires a payment or payments in order to comply 37 with any agreement with the holders of its notes and bonds and to carry 38 out its corporate purposes, including the maintenance of the capital 39 reserve fund, from the special account established for such corporation, 40 each of which certificates shall specify the required payment or 41 payments and the date when the payment or payments is required, the 42 comptroller shall pay from such special account on or before the speci- 43 fied date or within thirty days after such receipt, whichever is later, 44 to such corporation, as the [~~chairman~~] chairperson thereof may direct in 45 any such certificate, the amount or amounts so certified. In the case 46 of the municipal assistance corporation for the city of New York, each 47 amount so paid shall be comprised of revenues attributable to receipts 48 from both the city of New York and the city of Staten Island in the same 49 proportion that such revenues were received during the period covered by 50 each such certification. The [~~chairman~~] chairperson of such corporation 51 shall furnish the commissioner of taxation and finance with copies of 52 such certificates. The comptroller shall from time to time, but in no 53 event later than the fifteenth day of October, January and April and the 54 last day of June of each fiscal year, pay over and distribute to the 55 chief fiscal officer of the city in aid of which such municipal assist- 56 ance corporation has been created to be paid into the treasury of such

S. 8578 122 1 city to the credit of the general fund, or pay over and distribute to a 2 public benefit corporation to which the tax may otherwise be payable 3 pursuant to law, all revenues in the special account established for 4 such corporation in the municipal assistance tax fund, if any, in excess 5 of the aggregate amount which the [~~chairman~~] chairperson of such corpo- 6 ration has certified to the comptroller and which has been previously 7 appropriated and paid to such corporation as hereinabove authorized. 8 Notwithstanding the provisions of this subdivision, in the case of the 9 municipal assistance corporation for the city of New York, the comp- 10 troller shall from time to time, but in no event later than the 11 fifteenth of October, January, and April and the last day of June of 12 each fiscal year, (a) apportion between the city of New York and the 13 city of Staten Island the revenues, if any, in the special account 14 established for such corporation in the municipal assistance tax fund on 15 the basis of the locus of their receipt and (b) pay over and distribute 16 to the chief fiscal officers of such cities to pay into their respective 17 treasuries to the credit of the general fund all such respective reven- 18 ues in excess of the aggregate amount which the chairperson of such 19 corporation has certified to the comptroller and which has been previ- 20 ously appropriated and paid to such corporation as hereinabove author- 21 ized. In no event shall the comptroller pay over and distribute any 22 revenues (other than the amount to be deducted for administering, 23 collecting and distributing such sales and compensating use taxes) to 24 any person other than the municipal assistance corporation unless and 25 until the aggregate of all payments certified to the comptroller as 26 required by such corporation as of such date in order to comply with its 27 agreements with the holders of its notes and bonds and to carry out its 28 corporate purposes, including the maintenance of the capital reserve 29 fund, which remain unappropriated or unpaid to such corporation shall 30 have been appropriated to such corporation and shall have been paid in 31 full; provided, however, that no person, including such corporation or 32 the holders of its notes or bonds shall have any lien on such revenues 33 and such agreement shall be executory only to the extent of such reven- 34 ues available to the state in such special account. On the day on which 35 the comptroller pays over and distributes to the chief fiscal officer of 36 such city or cities any revenues from such special account the commis- 37 sioner of taxation and finance shall certify to the comptroller the 38 amount to be deducted for administering, collecting and distributing the 39 tax imposed pursuant to section eleven hundred seven or eleven hundred 40 eight (as the case may be) of the tax law within the territorial limits 41 of such city or cities since [he] such commissioner last certified such 42 amount and the comptroller shall pay such amount into the general fund 43 of the state treasury to the credit of the state purposes fund therein. 44 § 12-007. Subdivision 3 of section 92-e of the state finance law, as 45 amended by chapter 187 of the laws of 1995, is amended to read as 46 follows: 47 3. Such amounts, including per capita aid apportioned to a city in aid 48 of which a municipal assistance corporation has been created (including, 49 in the case of the municipal assistance corporation for the city of New 50 York, the city of Staten Island), shall be deposited by the comptroller 51 to the credit of the special account established for the municipal 52 assistance corporation which has been created in aid of such city in 53 order to enable such corporation to fulfill the terms of any agreements 54 made with the holders of its notes and bonds and to carry out its corpo- 55 rate purposes, including the maintenance of the capital reserve fund 56 securing such bonds and notes, and, subject to the provisions of section

S. 8578 123 1 fifty-four of this chapter, and subdivisions five and five-a of this 2 section, the balance, if any, shall be paid to the chief fiscal officer 3 of the city in aid of which such corporation has been created as herein- 4 after provided. Notwithstanding the provisions of this subdivision, in 5 the case of the municipal assistance corporation for the city of New 6 York, such balance, if any, shall be divided between the city of New 7 York and the city of Staten Island and paid, as hereinafter provided. 8 § 12-008. Subdivision 5 of section 92-e of the state finance law, as 9 amended by chapter 55 of the laws of 1992, is amended to read as 10 follows: 11 5. Upon receipt by the comptroller of a certificate or certificates 12 from the [~~chairman~~] chairperson of a municipal assistance corporation 13 that such corporation requires a payment or payments in order to comply 14 with any agreement with the holders of its notes and bonds and to carry 15 out its corporate purposes, including the maintenance of the capital 16 reserve fund securing such bonds, from the appropriate special account 17 established for such corporation, each of which certificates shall spec- 18 ify the required payment or payments and the date when the payment or 19 payments is required, the comptroller shall pay from such special 20 account on or before the specified date or within thirty days after 21 receipt of such certificate or certificates, whichever is later, to such 22 corporation, as the [~~chairman~~] chairperson thereof may direct in any 23 such certificate, the amount or amounts so certified. In the case of 24 the municipal assistance corporation for the city of New York, each 25 amount so paid shall be comprised of per capita aid apportioned to the 26 city of New York and the city of Staten Island in the same proportion 27 that such amounts were so apportioned during the period covered by each 28 such certification. The comptroller shall from time to time, but in no 29 event later than the fifteenth day of October, January and April and the 30 last day of June of each fiscal year, pay over and distribute to the 31 chief fiscal officer of the city in aid of which such municipal assist- 32 ance corporation has been created to be paid into the treasury of such 33 city to the credit of the general fund all revenues in the special 34 account established for such corporation in the municipal assistance 35 state aid fund, if any, in excess of (i) the aggregate amount which the 36 [~~chairman~~] chairperson of such corporation has certified to the comp- 37 troller and which has been previously paid to such corporation as herein 38 above authorized, and (ii) amounts to be refunded to the general fund of 39 the state of New York pursuant to subdivision five-a of this section. 40 Notwithstanding the provisions of this subdivision, in the case of the 41 municipal assistance corporation for the city of New York, the comp- 42 troller shall from time to time, but in no event later than the 43 fifteenth of October, January and April and the last day of June of each 44 fiscal year, (a) apportion between the city of New York and the city of 45 Staten Island the revenues, if any, in the special account established 46 for such corporation in the municipal assistance state aid fund on the 47 basis of the amounts apportioned to each such city pursuant to section 48 fifty-four of this chapter and (b) pay over and distribute to the chief 49 fiscal officers of such cities to be paid into their respective treas- 50 uries to the credit of the general fund all such respective revenues in 51 excess of the aggregate amount which the chairperson of such corporation 52 has certified to the comptroller and which has been previously paid to 53 such corporation as hereinabove authorized. In no event shall the comp- 54 troller pay over and distribute any revenues to any person other than 55 the municipal assistance corporation unless and until the aggregate of 56 all payments certified to the comptroller as required by such corpo-

S. 8578 124 1 ration as of such date in order to comply with its agreements with the 2 holders of its notes and bonds and to carry out its corporate purposes, 3 including the maintenance of the capital reserve fund securing such 4 bonds, which remain unpaid to such corporation shall have been paid in 5 full to such corporation; provided, however, that no person, including 6 such corporation or the holders of its notes or bonds shall have any 7 lien on such revenues and such agreement shall be executory only to the 8 extent of such revenues available to the state in such special account. 9 § 12-009. Paragraph c of subdivision 6 of section 54 of the state 10 finance law, as added by chapter 430 of the laws of 1997, is amended to 11 read as follows: 12 c. Upon such certification of the amounts payable to counties, cities, 13 villages and towns for town-wide and town outside village purposes, such 14 per capita aid shall be apportioned and paid to the chief fiscal officer 15 of each such locality pursuant to this section on audit and warrant of 16 the state comptroller out of moneys appropriated by the legislature for 17 such purpose to the credit of the local assistance account in the gener- 18 al fund of the state treasury; provided however that upon such certif- 19 ication of amounts payable to the city of New York or, the city of 20 Staten Island, if applicable, such per capita aid shall be apportioned 21 and paid as follows: (i) any amounts required to be paid to the city 22 university construction fund pursuant to the city university 23 construction fund act, (ii) any amounts required to be paid to the New 24 York city housing development corporation pursuant to the New York city 25 housing development corporation act, (iii) any amounts required to be 26 paid by the city to the New York city transit authority pursuant to the 27 provisions of chapter seven of the laws of nineteen hundred seventy-two, 28 (iv) any amounts required to be paid by the city to the state to repay 29 an advance made in nineteen hundred seventy-four to subsidize the fare 30 of the New York city transit authority, (v) five hundred thousand 31 dollars to the chief fiscal officer of the city of New York for payment 32 to the trustees of the police pension fund of such city pursuant to the 33 provisions of paragraph e of this subdivision, (vi) eighty million 34 dollars to the special account for the municipal assistance corporation 35 for the city of New York in the municipal assistance tax fund created 36 pursuant to section ninety-two-d of this chapter to the extent that such 37 amount has been included by the municipal assistance corporation for the 38 city of New York in any computation for the issuance of bonds on a pari- 39 ty with outstanding bonds pursuant to a contract with the holders of 40 such bonds prior to the issuance of any other bonds secured by payments 41 from the municipal assistance state aid fund created pursuant to section 42 ninety-two-e of this chapter, (vii) the balance to the special account 43 for the municipal assistance corporation for the city of New York in the 44 municipal assistance state aid fund created pursuant to section ninety- 45 two-e of this chapter, and (viii) any amounts to be refunded to the 46 general fund of the state of New York pursuant to the annual appropri- 47 ation enacted for the municipal assistance state aid fund. Notwithstand- 48 ing any existing law, no payments of per capita aid payable to the city 49 of New York shall be paid to the state of New York municipal bond bank 50 agency, the New York state sports authority or the transit construction 51 fund so long as amounts of such aid are required to be paid into the 52 municipal assistance state aid fund, and thereafter, after payment of 53 the amounts described in subparagraphs (i) through (viii) of this para- 54 graph the balance shall be paid (A) to the state in repayment of the 55 appropriation of two hundred fifty million dollars made to the city 56 pursuant to chapter two hundred fifty-seven of the laws of nineteen

S. 8578 125 1 hundred seventy-five providing emergency financial assistance to the 2 city of New York at the extraordinary session held in such year, as 3 amended, (B) to the state of New York municipal bond bank agency to the 4 extent provided by section twenty-four hundred thirty-six of the public 5 authorities law, (C) to the New York state sports authority to the 6 extent provided by section twenty-four hundred sixty-three of the public 7 authorities law, (D) to the transit construction fund to the extent 8 provided by section twelve hundred twenty-five-i of the public authori- 9 ties law, and thereafter (E) to the city of New York. 10 § 12-010. Subparagraphs 1 and 2 of paragraph d of subdivision 6 of 11 section 54 of the state finance law, as added by chapter 430 of the laws 12 of 1997, are amended to read as follows: 13 (1) to the city of New York and the city of Staten Island, on the 14 twenty-fifth days of April, June, October and February; 15 (2) to every county, city, village or town, other than the city of 16 New York and the city of Staten Island, whose fiscal year commences on 17 the first day of June or July, on the twenty-fifth days of April, May, 18 September and December; 19 § 12-011. Subdivisions 1 and 2 of section 3034 of the public authori- 20 ties law, as added by chapter 169 of the laws of 1975, are amended to 21 read as follows: 22 1. The corporation shall be administered by a board of directors, 23 consisting of nine directors, none of whom shall be officers or employ- 24 ees of the federal government or of the state or political subdivisions 25 thereof. All of the directors shall be appointed by the governor with 26 the advice and consent of the senate, provided that four of such direc- 27 tors shall be appointed upon written recommendation of the mayor. Of 28 the directors initially appointed upon the written recommendation of the 29 mayor, one shall serve for a term ending December thirty-first, nineteen 30 hundred seventy-six; one shall serve for a term ending December thirty- 31 first, nineteen hundred seventy-seven; one shall serve for a term ending 32 December thirty-first, nineteen hundred seventy-eight; and one shall 33 serve for a term ending December thirty-first, nineteen hundred seven- 34 ty-nine. The provisions of this subdivision notwithstanding, of the 35 directors appointed upon the recommendation of the mayor, the director 36 whose term expires on the December thirty-first next preceding the 37 establishment of a city of Staten Island, and any successor thereto, 38 shall be appointed only upon the written recommendation of the mayor of 39 the city of Staten Island. Of the remaining directors initially 40 appointed by the governor, one shall serve for a term ending December 41 thirty-first, nineteen hundred seventy-six; one shall serve for a term 42 ending December thirty-first, nineteen hundred seventy-seven; one shall 43 serve for a term ending December thirty-first, nineteen hundred seven- 44 ty-eight; and two shall serve for a term ending December thirty-first, 45 nineteen hundred seventy-nine. Each director shall hold office until 46 [~~his~~] such director's successor has been appointed and qualified. There- 47 after each director appointed by the governor shall serve a term of four 48 years, except that any director appointed to fill a vacancy shall serve 49 only until the expiration of [~~his~~] their predecessor's term. 50 2. The speaker and the minority leader of the assembly, the president 51 pro-tem and the minority leader of the senate, the city board of esti- 52 mate acting by majority vote, [~~and~~] the [~~vice-chairman~~] vice-chairperson 53 of the city council, the comptroller of the city of Staten Island and 54 the common council of the city of Staten Island shall each be entitled 55 to appoint a representative to the board of directors. Each such 56 representative shall be entitled to receive notice of and to attend all

S. 8578 126 1 meetings of the board of directors but shall not be entitled to vote. 2 No representative shall be an employee or officer of the federal, state 3 or city governments. Each representative shall serve at the pleasure of 4 the appointing official or body, shall be eligible for reappointment, 5 and shall hold office until [~~his~~] such representative's successor has 6 been appointed. 7 § 12-012. Subdivision 1 of section 3036 of the public authorities law, 8 as amended by chapter 201 of the laws of 1978, is amended to read as 9 follows: 10 1. Not less than one hundred twenty days before the beginning of each 11 fiscal year of the corporation (but not later than July 1, 1975 for the 12 fiscal year ending June 30, 1976), the [~~chairman~~] chairperson of the 13 board of directors of the corporation shall certify to the state comp- 14 troller and to the mayor a schedule setting forth the cash requirements 15 of the corporation for such fiscal year and the time or times when such 16 cash is required. The total amount so certified by such [~~chairman~~] 17 chairperson for such fiscal year shall be equal to: (i) the amounts 18 which are required to be deposited in the capital reserve fund author- 19 ized to be created and established pursuant to subdivision three of this 20 section during such fiscal year in order to maintain such capital 21 reserve fund of the corporation at the level required in accordance with 22 subdivision five of this section; (ii) the amounts required to be depos- 23 ited in the debt service fund of the corporation to pay all interest and 24 all payments of principal and redemption premium, if any, on notes and 25 bonds secured by such debt service fund maturing or otherwise coming due 26 during such fiscal year; and (iii) the amounts required to be deposited 27 in the operating fund of the corporation, as determined by the corpo- 28 ration, to meet the operating requirements and other expenses of the 29 corporation during such fiscal year. If any increase shall occur in the 30 cash requirements specified above, or if payments are required at a time 31 or times earlier than previously certified or if the city shall for any 32 reason fail to make timely payment of the principal and accrued interest 33 due on any obligation issued by the city to the corporation and maturing 34 within the same fiscal year, such [~~chairman~~] chairperson shall certify a 35 revised schedule of cash requirements for such fiscal year to the state 36 comptroller and to the mayor. The schedule accompanying each certif- 37 ication (or revision thereof) shall provide for such payment dates as 38 the corporation deems appropriate to assure that sufficient funds will 39 be available from the sources identified below to enable it to meet its 40 current obligations as they come due. Upon receipt of such certif- 41 ication, or any revision thereof, the state comptroller shall pay such 42 amount to the corporation for deposit in the appropriate funds, in 43 accordance with such certification from the special account established 44 for the corporation in the municipal assistance tax fund, in accordance 45 with subdivision one of section ninety-two-d of the state finance law, 46 including any amount transferred to the municipal assistance tax fund 47 from the stock transfer tax fund pursuant to subdivision four of section 48 [~~92-b~~] ninety-two-b of the state finance law. Any such payment shall 49 be made within thirty days of receipt of the certification or at the 50 time specified in the certification, whichever is later; provided that 51 any such amounts shall have been first appropriated by the state for 52 such purpose or shall have been otherwise made available. Any amount so 53 paid to the corporation shall be deducted from the amount otherwise 54 payable to the city or the city of Staten Island, as the case may be, 55 from the municipal assistance tax fund established by section ninety- 56 two-d of the state finance law and shall not obligate the state to make,

S. 8578 127 1 nor entitle the city or the city of Staten Island, as the case may be, 2 to receive, any additional payments. 3 § 12-013. Subdivision 1 of section 3036-a of the public authorities 4 law, as amended by chapter 55 of the laws of 1992, is amended to read as 5 follows: 6 1. In addition to the total amount certified by such [~~chairman~~] chair- 7 person for such fiscal year, all as referred to in subdivision one of 8 section three thousand thirty-six, the [~~chairman~~] chairperson shall at 9 the same time certify to the state comptroller and to the mayor a sched- 10 ule setting forth additional cash requirements of the corporation which 11 shall be equal to: (i) the amounts which are required to be deposited in 12 the capital reserve fund authorized to be created and established pursu- 13 ant to subdivision two of this section (in this section called the capi- 14 tal reserve fund) during such fiscal year in order to maintain the capi- 15 tal reserve fund at the level required in accordance with subdivision 16 four of this section; (ii) the amounts required to be deposited in the 17 bond service fund of the corporation to pay all interest and all 18 payments of principal and redemption premium, if any, on notes and bonds 19 payable from the sources hereinafter identified in this section and 20 maturing or otherwise coming due during such fiscal year; and (iii) the 21 amounts required to be deposited in the operating fund of the corpo- 22 ration heretofore established, as determined by the corporation, to meet 23 the operating requirements and other expenses of the corporation during 24 such fiscal year. If any increase shall occur in such additional cash 25 requirements specified above, or if payments are required at a time or 26 times earlier than previously certified or if the city shall for any 27 reason fail to make timely payment of the principal and accrued interest 28 due on any obligation issued by the city to the corporation and maturing 29 within the same fiscal year, such [~~chairman~~] chairperson shall certify a 30 revised schedule of such additional cash requirements for such fiscal 31 year to the state comptroller and to the mayor. The schedule accompany- 32 ing each certification (or revision thereof) shall provide for such 33 payment dates as the corporation deems appropriate to assure that suffi- 34 cient funds will be available from the sources identified below to 35 enable it to meet its current obligations under this section as they 36 come due. Upon receipt of such certification, or any revision thereof, 37 the state comptroller shall pay such amount to the corporation for 38 deposit in the appropriate funds referred to in this section, in accord- 39 ance with such certification from the special account established for 40 the corporation in the municipal assistance state aid fund in accord- 41 ance with subdivision one of section ninety-two-e of the state finance 42 law and, subject to agreements with outstanding bond and note holders of 43 the corporation, from the special account established for the corpo- 44 ration in the municipal assistance tax fund, in accordance with subdivi- 45 sion one of section ninety-two-d of the state finance law, including any 46 amount transferred to the municipal assistance tax fund from the stock 47 transfer tax fund pursuant to subdivision four of section ninety-two-b 48 of the state finance law. Any such payment shall be made within thirty 49 days of receipt of the certification or at the time specified in the 50 certification, whichever is later; provided that any such amounts shall 51 have been first appropriated by the state for such purpose or shall have 52 been otherwise made available. Any amount paid to the corporation from 53 such municipal assistance state aid fund shall be deducted from the 54 amount otherwise payable to the city or the city of Staten Island, as 55 the case may be, as per capita aid pursuant to sections fifty-four and 56 ninety-two-e of the state finance law and shall not obligate the state

S. 8578 128 1 to make, nor entitle the city or the city of Staten Island, to receive, 2 any additional payments of per capita aid. Any amount so paid to the 3 corporation from the municipal assistance tax fund shall, in addition to 4 the amount deducted pursuant to subdivision one of section three thou- 5 sand thirty-six, be deducted from the amount otherwise payable to the 6 city or the city of Staten Island, as the case may be, from the munici- 7 pal assistance tax fund and shall not obligate the state to make, nor 8 entitle the city or the city of Staten Island to receive, any additional 9 payments from such municipal assistance tax fund. 10 § 12-014. Subdivision 1 of section 3036-b of the public authorities 11 law, as amended by chapter 55 of the laws of 1992, is amended to read as 12 follows: 13 1. In addition to the total amount certified by such [~~chairman~~] chair- 14 person for such fiscal year, all as referred to in subdivision one of 15 each of sections three thousand thirty-six and three thousand thirty- 16 six-a of this title, the [~~chairman~~] chairperson shall at the same time 17 certify to the state comptroller and to the mayor a schedule setting 18 forth additional cash requirements of the corporation which shall be 19 equal to: (i) the amounts required to be deposited in the bond payment 20 fund of the corporation to pay all interest and all payments of princi- 21 pal and redemption premium, if any, on bonds and notes payable from the 22 sources hereinafter identified in this section and maturing or otherwise 23 coming due during such fiscal year; (ii) the amounts required to be 24 deposited in the operating fund of the corporation heretofore estab- 25 lished, as determined by the corporation, to meet the operating require- 26 ments and other expenses of the corporation during such fiscal year to 27 the extent not otherwise provided for; and (iii) the amounts required to 28 be deposited in the bond reserve fund created and established pursuant 29 to the agreements of the corporation made with the holders of its bonds 30 or notes issued pursuant to subdivision two-b of section three thousand 31 thirty-three of this title during such fiscal year in order to maintain 32 the bond reserve fund at the level required in accordance with the 33 agreements of the corporation made with the holders of its bonds or 34 notes issued pursuant to subdivision two-b of section three thousand 35 thirty-three of this title. If any increase shall occur in such addi- 36 tional cash requirements specified above, or if payments are required at 37 a time or times earlier than previously certified or if the city shall, 38 for any reason, fail to make timely payment of the principal and accrued 39 interest due on any obligation issued by the city to the corporation and 40 maturing within the same fiscal year, such [~~chairman~~] chairperson shall 41 certify a revised schedule of such additional cash requirements for such 42 fiscal year to the state comptroller and to the mayor. The schedule 43 accompanying each certification, or revision thereof, shall provide for 44 such payment dates as the corporation deems appropriate to assure that 45 sufficient funds will be available from the sources identified below to 46 enable it to meet its current obligations under this section as they 47 come due. Upon receipt of such certification, or any revision thereof, 48 the state comptroller shall pay such amount to the corporation for 49 deposit in the appropriate funds referred to in this section, in accord- 50 ance with such certification and subject to agreements with holders of 51 outstanding bonds and notes of the corporation, from the special account 52 established for the corporation in the municipal assistance state aid 53 fund in accordance with subdivision one of section ninety-two-e of the 54 state finance law and from the special account established for the 55 corporation in the municipal assistance tax fund in accordance with 56 subdivision one of section ninety-two-d of the state finance law,

S. 8578 129 1 including any amount transferred to the municipal assistance tax fund 2 from the stock transfer tax fund pursuant to subdivision four of section 3 ninety-two-b of the state finance law. Any such payment shall be made 4 within thirty days of receipt of the certification or at the time speci- 5 fied in the certification, whichever is later; provided that any such 6 amounts shall have been first appropriated by the state for such purpose 7 or shall have been otherwise made available. Any amount paid to the 8 corporation from such municipal assistance state aid fund, in addition 9 to the amount deducted pursuant to subdivision one of section three 10 thousand thirty-six-a of this title, shall be deducted from the amount 11 otherwise payable to the city or the city of Staten Island, as the case 12 may be, as per capita aid pursuant to sections fifty-four and ninety- 13 two-e of the state finance law and shall not obligate the state to make, 14 nor entitle the city or the city of Staten Island to receive, any addi- 15 tional payments of per capita aid. Any amount so paid to the corporation 16 from the municipal assistance tax fund, in addition to the amount 17 deducted pursuant to subdivision one of each of section three thousand 18 thirty-six or three thousand thirty-six-a of this title, shall be 19 deducted from the amount otherwise payable to the city or the city of 20 Staten Island, as the case may be, from the municipal assistance tax 21 fund and shall not obligate the state to make, nor entitle the city or 22 the city of Staten Island to receive, any additional payments from such 23 municipal assistance tax fund. 24 § 12-015. Section 6 of section 2 of chapter 868 of the laws of 1975, 25 constituting the New York state financial emergency act for the city of 26 New York, subdivision 1 as amended by chapter 777 of the laws of 1978, 27 subdivision 3 as amended by chapter 869 of the laws of 1975 and subdivi- 28 sion 4 as amended by chapter 201 of the laws of 1978, is amended to read 29 as follows: 30 § 6. Administration of the board. 1. The membership of the board 31 shall be the governor, the state comptroller (pursuant to [~~his~~] such 32 official's authority to supervise the accounts of any political subdivi- 33 sion of the state), the mayor, the city comptroller, the mayor of the 34 city of Staten Island, the comptroller of the city of Staten Island, and 35 three members appointed by the governor with the advice and consent of 36 the senate. At least two of the appointed members shall be residents of 37 the city or have their principal place of business in the city. The 38 mayor of the city of Staten Island may recommend to the governor the 39 appointment of one such appointed member. Such appointed members shall 40 serve at the pleasure of the governor. The governor shall be the [~~chair-~~ 41 ~~man~~] chairperson of the board and the governor or [~~his~~] the governor's 42 representative shall preside over all meetings of the board. The board 43 shall act by majority vote of the entire board, provided, however, on 44 matters affecting only the city, as determined by the governor, the 45 state comptroller and the appointed members, the mayor of the city of 46 Staten Island and the comptroller of the city of Staten Island shall not 47 vote, and on matters affecting only the city of Staten Island, as deter- 48 mined by the governor, the state comptroller and the appointed members, 49 the mayor and the city comptroller shall not vote. Such officials not 50 voting shall not be considered members of the board for determining a 51 majority. The board shall maintain a record of its proceedings in such 52 form as it may determine, but such record shall indicate attendance and 53 all votes cast by each member. Every member of the board, who is other- 54 wise an elected official of the state or city, shall be entitled to 55 designate a representative to attend, in [~~his~~] such official's place, 56 meetings of the board and to vote or otherwise act in [~~his~~] such offi-

S. 8578 130 1 cial's behalf. Written notice of such designation shall be furnished to 2 the board by the designating member prior to any meeting attended by 3 [~~his~~] such official's representative. Any such representative shall 4 serve at the pleasure of the designating member. No such representative 5 shall be authorized to delegate any of [~~his~~] such representative's 6 duties or functions to any other person. The lieutenant governor, 7 temporary president of the senate, the minority leader of the senate, 8 speaker and minority leader of the assembly, the president of the coun- 9 cil of the city of New York, the city board of estimate acting by major- 10 ity vote, the speaker and the minority leader of the common council of 11 the city of Staten Island and the [~~vice-chairman~~] vice-chairperson and 12 the minority leader of the council of the city of New York, shall each 13 be entitled to appoint a representative to the board. Each such repre- 14 sentative shall be entitled to receive notice of and to attend all meet- 15 ings of the board but shall not be entitled to vote. No representative 16 shall be an employee or officer of the federal, state or city govern- 17 ments. Each representative shall serve at the pleasure of the appoint- 18 ing official or body, shall be eligible for reappointment, and shall 19 hold office until [~~his~~] such representative's successor has been 20 appointed. 21 2. Notwithstanding any inconsistent provisions of law, general, 22 special or local, no officer or employee of the state, or political 23 subdivision of the state, any governmental entity operating any public 24 school or college or other public agency or instrumentality or unit of 25 government which exercises governmental powers under the laws of the 26 state, shall forfeit [~~his~~] such person's office or employment by reason 27 of [~~his~~] such person's acceptance or appointment as a member, represen- 28 tative, officer, employee or agent of the board nor shall service as 29 such member, representative, officer, employee or agent of the board be 30 deemed incompatible or in conflict with such office or employment. 31 3. The members of the board appointed by the governor and all repre- 32 sentatives designated by members of the board shall serve without salary 33 or per diem allowance but shall be entitled to reimbursement for actual 34 and necessary expenses incurred in the performance of official duties 35 under this act, provided however that such members and representatives 36 are not, at the time such expenses are incurred, public employees other- 37 wise entitled to such reimbursement. 38 4. The governor and the mayor, jointly, shall appoint an executive 39 director of the board who shall serve at the pleasure of the board and 40 may be removed by the board. The board may delegate to the executive 41 director or to one or more of its other officers, employees or agents, 42 such powers and duties as the board may deem proper, except any duties 43 inconsistent with the duties and functions prescribed by any other 44 office or position any such person may hold. 45 § 12-016. Section 7 of section 2 of chapter 868 of the laws of 1975, 46 constituting the New York state financial emergency act for the city of 47 New York, paragraphs a, b, c, e, f and g of subdivision 1, paragraphs 48 (b) and (f) of subdivision 3 and subdivisions 4 and 6 as amended and 49 subdivision 7 as added by chapter 777 of the laws of 1978, paragraph h 50 of subdivision 1 as amended by chapter 870 of the laws of 1975, para- 51 graphs d and i of subdivision 1 as amended by chapter 830 of the laws of 52 1987, subdivisions 3 and 5 as added by chapter 201 of the laws of 1978, 53 and paragraph (i) of subdivision 3 as amended by chapter 285 of the laws 54 of 1985, is amended to read as follows: 55 § 7. Functions of the board. 1. In carrying out the purposes of this 56 act, the board shall perform the following functions:

S. 8578 131 1 a. In accordance with the provisions of section eight of this act, the 2 board shall (i) consult with the city and the covered organizations and 3 to the extent it deems it necessary or appropriate to accomplish the 4 purposes of this act, the city of Staten Island, in the preparation of 5 the financial plan, and certify to the city the revenue estimates 6 approved therein, (ii) prescribe the form of the financial plan and the 7 supporting information required in connection therewith, and (iii) exer- 8 cise the rights of approval, disapproval and modification with respect 9 to the financial plan, including but not limited to the revenue esti- 10 mates contained therein. 11 b. The board, to the extent it deems it necessary or appropriate in 12 order to accomplish the purposes of this act, shall establish and adopt 13 procedures with respect to the (i) proper maintenance of the board fund, 14 (ii) the deposit and investment of revenues in such fund and (iii) 15 disbursement of monies from such fund. 16 c. The board shall, from time to time and to the extent it deems 17 necessary or appropriate in order to accomplish the purposes of this 18 act, (i) review the operations, management, efficiency and productivity 19 of such city operations and of such covered organizations or of the city 20 of Staten Island or portions thereof as the board may determine, and 21 make reports thereon; (ii) audit compliance with the financial plan in 22 such areas as the board may determine; (iii) recommend to the city, the 23 city of Staten Island and the covered organizations such measures relat- 24 ing to their operations, management, efficiency and productivity as it 25 deems appropriate to reduce costs and improve services so as to advance 26 the purposes of this act; and (iv) obtain information of the financial 27 condition and needs of the city, the city of Staten Island and the 28 covered organizations. Nothing herein shall diminish the powers of the 29 comptroller otherwise provided by law and the board may request the 30 assistance of the comptroller in performing the above functions. 31 d. The board (i) shall receive from the city and review the reports to 32 be prepared by or on behalf of the city pursuant to section seven-a; 33 (ii) shall receive from the city, the city of Staten Island and the 34 covered organizations and from the deputy comptroller, and shall review 35 such financial statements and projections, budgetary data and informa- 36 tion, and management reports and materials as the board deems necessary 37 or desirable to accomplish the purposes of this act; and (iii) shall 38 inspect, copy and audit such books and records of the city, the city of 39 Staten Island and the covered organizations as the board deems necessary 40 or desirable to accomplish the purposes of this act. 41 e. All contracts entered into by the city or any covered organization 42 and, to the extent the board deems necessary or desirable to accomplish 43 the purposes of this act, by the city of Staten Island must be consist- 44 ent with the provisions of this act and must comply with the require- 45 ments of the financial plan as approved by the board. With respect to 46 all contracts or other obligations to be entered into by the city or any 47 covered organization after October fifteenth, nineteen hundred seventy- 48 five, requiring the payment of funds or the incurring of costs by the 49 city or any covered organization: 50 (i) Within twenty days from the effective date of this act the mayor 51 shall present to the board proposed regulations respecting the catego- 52 ries and types of contracts and other obligations required to be 53 reviewed by the board pursuant to this subdivision [e]. Within thirty 54 days from the effective date of this act, the board shall approve or 55 modify and approve such proposed regulations or promulgate its own in 56 the event that such proposed regulations are not submitted to it within

S. 8578 132 1 the twenty days as provided for herein. Such regulations may thereafter 2 be modified by the board from time to time on not less than thirty days 3 notice to the mayor and the mayor may from time to time propose modifi- 4 cations to the board. Unless expressly disapproved or modified by the 5 board within thirty days from the date of submission by the mayor, any 6 such proposed regulations or modifications shall be deemed approved by 7 the board; 8 (ii) Prior to entering into any contract or other obligations subject 9 to review of the board under its regulations, the city or any covered 10 organization and, to the extent the board deems necessary or desirable 11 to accomplish the purposes of this act, the city of Staten Island shall 12 submit a copy of such contract or other obligation to the board accompa- 13 nied by an analysis of the projected costs of such contract or other 14 obligation and a certification that performance thereof will be in 15 accordance with the financial plan, all in such form and with such addi- 16 tional information as the board may prescribe. The board shall promptly 17 review the terms of such contract or other obligation and the supporting 18 information in order to determine compliance with the financial plan; 19 (iii) During a control period the board shall, by order, disapprove 20 any contract or other obligation reviewed by it only upon a determi- 21 nation that, in its judgment, the performance of such contract or other 22 obligation would be inconsistent with the financial plan and the city, 23 the city of Staten Island or covered organization shall not enter into 24 such contract or other obligation; 25 (iv) During a control period if the board approves the terms of a 26 reviewed contract or other obligation, the city or covered organization 27 and, to the extent the board deems necessary or desirable to accomplish 28 the purposes of this act, the city of Staten Island may enter into such 29 contract or other obligation upon the terms submitted to the board. 30 Failure of the board to notify the city, the city of Staten Island or 31 covered organization within thirty days (or such additional time not 32 exceeding thirty days as the board shall have notified the city or 33 covered organization, that it requires to complete its review and analy- 34 sis) after submission to it of a contract or other obligation that such 35 contract or other obligation has been disapproved shall be deemed to 36 constitute board approval thereof. 37 f. Upon submission thereof by the city, the board shall review the 38 terms of each proposed long-term and short-term borrowing by the city 39 and any covered organization to be effected during a control period but 40 after October fifteenth, nineteen hundred seventy-five, and no such 41 borrowing shall be made unless approved by the board. To the extent the 42 board deems necessary or desirable to accomplish the purposes of this 43 act, during a control period, the city of Staten Island shall submit and 44 the board shall review the terms of each proposed long-term and short- 45 term borrowing by the city of Staten Island and no such borrowing shall 46 be made unless approved by the board. Each such proposed borrowing by a 47 covered organization shall be submitted to the city by the covered 48 organization before it may be considered by the board. Not more than 49 thirty days after any such submission by a covered organization the city 50 shall transmit any such proposed terms of borrowing to the board togeth- 51 er with the certification of the city as to whether such proposed terms 52 of borrowing are in accordance with the financial plan and are consist- 53 ent with the objectives and purposes of this act. Any such submission 54 to the city shall be accompanied by a certification of the covered 55 organization that the terms thereof are in accordance with the financial 56 plan and are consistent with the objectives or purposes of this act. The

S. 8578 133 1 transmittal by the city to the board shall include a recommendation by 2 the city for the approval or disapproval of such proposed terms of 3 borrowing pursuant to the terms of this paragraph. In the event the 4 city does not make such transmittal within such thirty day period, such 5 covered organization may submit such proposed borrowing directly to the 6 board. The board shall disapprove any borrowing if it determines that 7 such borrowing is inconsistent with the financial plan or the objectives 8 or purposes of this act. The board shall consult and coordinate with the 9 municipal assistance corporation for the city of New York with respect 10 to borrowings of the city and any covered organization and shall receive 11 reports from the [~~muncipal~~] municipal assistance corporation for the 12 city of New York on its review of borrowings by the city. No covered 13 organizations shall be prohibited from issuing bonds or notes to pay 14 outstanding bonds or notes. 15 g. The board and the comptroller shall receive quarterly reports from 16 the city comptroller setting forth the debt service requirements on all 17 bonds and notes of the city and the covered organizations for the 18 following quarter, which reports shall be in such form and contain such 19 information as the board shall determine. Such reports shall be issued 20 no later than sixty days prior to the start of the quarter to which they 21 pertain and shall be updated immediately upon each issuance of bonds or 22 notes after the date of such report to reflect any change in debt 23 service requirements as a result of such issuance. The board also shall 24 receive from the city monthly and quarterly financial reports, which 25 reports shall be in such form and contain such information as the board 26 shall determine and shall be made available by the city to the public. 27 In order to avoid duplicative reports and reporting requirements, to the 28 extent that the city is required to submit monthly or quarterly finan- 29 cial reports to the department of the treasury pursuant to any agreement 30 or arrangement made in connection with federal guarantees of notes or 31 boards issued by the city or a state financing agency, copies of such 32 reports shall be submitted to the board in satisfaction of the monthly 33 and quarterly reporting requirements set forth above, together with such 34 additional information as the board may require. Each monthly and quar- 35 terly report herein required to be submitted to the board must indicate 36 any variance between actual and budgeted revenues, expenses or cash for 37 the period covered by such report. During a control period, to the 38 extent the board deems necessary or desirable to accomplish the purposes 39 of this act, the city of Staten Island shall be subject to the same 40 reporting requirements as the city. 41 h. The board shall issue, to the appropriate officials of the city, 42 the city of Staten Island and the covered organizations, such orders as 43 it deems necessary to accomplish the purposes of this act, including but 44 not limited to timely and satisfactory implementation of an approved 45 financial plan. Any order so issued shall be binding upon the official 46 to whom it was issued and failure to comply with such order shall 47 subject the official to the penalties described in section eleven of 48 this act. 49 i. The board shall coordinate with the municipal assistance corpo- 50 ration for the city of New York and the deputy comptroller with respect 51 to the performance of its review and monitoring of the revenues and 52 expenditures of the city and the covered organizations. 53 2. In the event of any default by the city on its outstanding bonds or 54 notes, and so long as such default has not been cured by the city, the 55 board may, any provisions of this act notwithstanding, take any action 56 that it is authorized to take pursuant to title six-A of article two of

S. 8578 134 1 the local finance law, and may direct the city to take any action that 2 the city is authorized to take under such law. 3 3. (a) Notwithstanding any provision of the New York City Collective 4 Bargaining Law, codified as chapter [~~fifty-four~~] three of title twelve 5 of the New York city administrative code, or any general or special law 6 to the contrary, any report or recommendation of an impasse panel 7 constituted pursuant to such chapter which provides for an increase in 8 wages or fringe benefits of any employee of the city or covered organ- 9 ization, in addition to considering any standard or factor required to 10 be considered by applicable law, including the standards enumerated in 11 section [~~1173-7.0~~] 12-311(c)(3)(b) of such chapter, shall also take into 12 consideration and accord substantial weight to the financial ability of 13 the city and or covered organization to pay the cost of such increase in 14 wages or fringe benefits. 15 (b) The board of collective bargaining constituted pursuant to such 16 chapter, when reviewing such report or recommendation before proceeding 17 to other issues, shall make a threshold determination as to whether such 18 report or recommendation for an increase in wages or fringe benefits is 19 within the city's and or covered organization's financial ability to 20 pay. If the threshold determination is in the negative, the matter shall 21 be remitted to the impasse panel for further consideration. If the 22 threshold determination is in the affirmative, the further review of the 23 report or recommendation with respect to other issues, if any, shall 24 proceed as provided by law. Unless the parties stipulate otherwise, the 25 threshold determination shall be made within thirty days after 26 submission of the report or recommendation to the board of collective 27 bargaining. 28 (c) Any determination pursuant to article eight of the labor law or 29 any agreement or stipulation entered into in lieu thereof which provides 30 for an increase in wages or fringe benefits of any employee of the city 31 or covered organization shall, in addition to considering any standard 32 or factor required to be considered by applicable law, also take into 33 consideration and accord substantial weight to the financial ability of 34 the city and or covered organization to pay the cost of such increase. 35 (d) Any report or recommendation of a fact finding or similar type 36 panel or any interest arbitration award which provides for an increase 37 in wages or fringe benefits of any employee of the city or covered 38 organization not subject to the provisions of the New York City Collec- 39 tive Bargaining Law, codified as chapter [~~fifty-four~~] three of title 40 twelve of the New York city administrative code, shall, in addition to 41 considering any standard or factor required to be considered by applica- 42 ble law, also take into consideration and accord substantial weight to 43 the financial ability of the city and or covered organization to pay the 44 cost of such increase. 45 (e) Any party to a proceeding before the board of collective bargain- 46 ing as described in paragraph (b) or other body as described in para- 47 graphs (c) or (d) [~~hereof~~] of this subdivision may commence a special 48 proceeding in the appellate division, first department, supreme court, 49 state of New York, to review the threshold determination as to the city 50 and/or covered organization's financial ability to pay. Such proceeding 51 shall be commenced not later than thirty days after the final determi- 52 nation has been made by the board of collective bargaining in the case 53 of paragraph (b) or other body in the case of paragraphs (c) or (d) of 54 this subdivision. Such proceeding shall have preference over all other 55 causes in such appellate division, other than causes relating to the 56 election law.

S. 8578 135 1 (f) The court shall make a de novo review of the record solely for the 2 purpose of determining whether an award of an increase in wages or 3 fringe benefits was within the city's and or covered organization's 4 financial ability to pay. The court's findings as to such issue shall be 5 based upon a preponderance of all the evidence set forth in the record. 6 Unless the parties stipulate otherwise, arguments or submission shall be 7 had within fifteen days after commencement of the special proceeding and 8 the court shall render its decision within fifteen days thereafter. All 9 questions, other than the question relating to the threshold determi- 10 nation, shall be reviewed by the appellate division in the same proceed- 11 ing in the manner provided by articles seventy-five or seventy-eight of 12 the civil practice law and rules as may be appropriate, notwithstanding 13 that the issue would otherwise have been cognizable in the first 14 instance before a special or trial term of the supreme court. If an 15 appeal shall otherwise lie from such determination of the appellate 16 division to the court of appeals, notice of such appeal shall be filed 17 within thirty days after the entry of the final order or judgment of the 18 appellate division if such appeal is of right or within ten days after 19 entry of an order granting leave to appeal and such appeal shall have 20 preference over all other appeals other than appeals relating to the 21 election law. 22 (g) At any stage of any proceeding under paragraphs (a), (b), (c), (d) 23 and (e) hereof or any appeal from an order or judgment therefrom, the 24 board may intervene as a party on the issue of the financial ability of 25 the city and or covered organization to pay the cost of an increase in 26 wages or fringe benefits. 27 (h) For the purposes of this subdivision, financial ability to pay 28 shall mean the financial ability of the city and or covered organization 29 to pay the cost of any increase in wages or fringe benefits without 30 requiring an increase in the level of city taxes existing at the time of 31 the commencement of a proceeding under paragraph (a), (c) or (d) hereof. 32 [~~(i) The provisions of this subdivision shall terminate on June thir-~~ 33 ~~tieth, nineteen hundred eighty-six.~~] 34 4. During a control period, except upon approval by the board in 35 accordance with the provisions of paragraph e or f of subdivision one of 36 this section, as the board shall determine, neither the city nor a 37 covered organization nor, to the extent the board deems necessary or 38 desirable to accomplish the purposes of this act, the city of Staten 39 Island shall enter any agreement or other arrangement, whether or not it 40 creates a debt of the city, the city of Staten Island or a covered 41 organization, pursuant to which the revenues or credit of the city or 42 the city of Staten Island may be directly or indirectly pledged, encum- 43 bered, committed or promised, contingently or otherwise, for the payment 44 of obligations of a public benefit corporation. Nothing in this subdivi- 45 sion shall limit the right of the city to comply with the provisions of 46 any existing agreement or other arrangement in respect of the obli- 47 gations of a public benefit corporation. 48 5. The board may employ such consultants as it may deem necessary to 49 assist it in performing its functions required under this act. 50 6. The board shall have the authority to make and execute agreements 51 and all other instruments which the board deems necessary for the exer- 52 cise of its powers and functions including, in connection with any 53 agreement by the federal government or any agency or instrumentality 54 thereof to guarantee the payment of the principal of or interest on 55 bonds or notes issued by the city or by a state financing agency, to 56 enter into one or more agreements containing terms and conditions

S. 8578 136 1 required by the secretary of the treasury pursuant to the New York City 2 Loan Guarantee Act of l978, Public Law 95-339 with the federal govern- 3 ment or any agency or instrumentality thereof with respect to such guar- 4 antee or any matters related thereto and to comply with such terms and 5 conditions. 6 7. The board may appoint qualified individuals to participate as 7 members of such audit, productivity or similar committees or councils as 8 the city may from time to time establish in consultation with the board. 9 Such individuals, however, shall not be deemed to be officers, employees 10 or agents of the board. The board shall review and report on, not less 11 than annually, the development and implementation of methods for enhanc- 12 ing the productivity of the city's labor force proposed by any such 13 committee or council. 14 § 12-017. Section 8 of section 2 of chapter 868 of the laws of 1975, 15 constituting the New York state financial emergency act for the city of 16 New York, subdivisions 1, 2, 4, 5 and 6 as amended by chapter 201 of the 17 laws of 1978, the opening paragraph and paragraph c of subdivision 1, 18 subdivisions 2-a and 3 as amended by chapter 777 of the laws of 1978, 19 paragraph a of subdivision 1 as amended by chapter 118 of the laws of 20 2020, is amended to read as follows: 21 § 8. Development of the financial plan. 1. Pursuant to the proce- 22 dures contained in subdivision three of this section, each year the 23 city and to the extent the board deems necessary or desirable to accom- 24 plish the purposes of this act, the city of Staten Island shall develop, 25 and may from time to time modify, with the approval of the board during 26 a control period, a four year financial plan covering the city and the 27 covered organizations or the city of Staten Island, as applicable. 28 Each such financial plan and financial plan modification shall comply 29 with the requirements of subdivision four of this section and shall, 30 except as otherwise provided pursuant to subdivision two-a of this 31 section, conform to the following standards: 32 a. For its fiscal years ending June thirtieth, nineteen hundred seven- 33 ty-nine through June thirtieth, nineteen hundred eighty-one, the city's 34 budget covering all expenditures other than capital items shall be 35 prepared and balanced so that the results thereof would not show a defi- 36 cit when reported in accordance with the accounting principles set forth 37 in the state comptroller's uniform system of accounts for munici- 38 palities, as the same may be modified by the comptroller, in consulta- 39 tion with the city comptroller, for application to the city; subject to 40 the provision of subdivision four of section three thousand thirty-eight 41 of the public authorities law with respect to contributions by the city 42 or other public employer to any retirement system or pension fund and 43 subject to the provision of paragraph (c) of subdivision five of section 44 three thousand thirty-eight of the public authorities law with respect 45 to expense items included in the capital budget of the city. For the 46 fiscal year ending June thirtieth, nineteen hundred eighty-two, and for 47 each fiscal year thereafter, the city's budget covering all expenditures 48 other than capital items shall be prepared and balanced so that the 49 results thereof would not show a deficit when reported in accordance 50 with generally accepted accounting principles and would permit compar- 51 ison of the budget with the report of actual financial results prepared 52 in accordance with generally accepted accounting principles. With 53 respect to financial plans that include the fiscal years ending June 54 thirtieth, nineteen hundred seventy-nine through June thirtieth, nine- 55 teen hundred eighty-one, the city's budget covering all expenditures 56 other than capital items shall be prepared in accordance with generally

S. 8578 137 1 accepted accounting principles and there shall be substantial progress 2 in each such fiscal year towards achieving a city budget covering all 3 expenditures other than capital items the results of which would not 4 show a deficit when reported in accordance with generally accepted 5 accounting principles. The city shall eliminate expense items from its 6 capital budget not later than the commencement of the fiscal year ending 7 June thirtieth, nineteen hundred eighty-two. For the fiscal year ending 8 June thirtieth, nineteen hundred eighty-nine, and for each fiscal year 9 thereafter, the budgets covering all expenditures other than capital 10 items of each of the covered organizations shall be prepared and 11 balanced so that the results thereof would not show a deficit when 12 reported in accordance with generally accepted accounting principles; 13 and for each fiscal year prior thereto, there shall be substantial 14 progress towards such goal. Notwithstanding the foregoing and the 15 provisions of any general or special state law or local law to the 16 contrary, including but not limited to the New York city charter: (i) 17 all costs that would be capital costs in accordance with generally 18 accepted accounting principles, but for the application of governmental 19 accounting standards board statement number forty-nine, shall be deemed 20 to be capital costs for purposes of this act and any other provision of 21 state or local law, including but not limited to the New York city char- 22 ter, relevant to the treatment of such costs; and (ii) the determination 23 as to the existence of a deficit pursuant to this act and any other 24 provision of state or local law, including but not limited to the New 25 York city charter, shall be made without regard to changes in restricted 26 fund balances, as defined by the governmental accounting standards 27 board, where restrictions in relation to such fund balances are imposed 28 by state or federal law or regulation, or otherwise by private or 29 governmental parties other than the city of New York, and without regard 30 to funds held in the health stabilization fund, the school crossing 31 guards health insurance fund, any revenue stabilization fund established 32 pursuant to section fifteen hundred twenty-eight of the New York city 33 charter and the management benefits fund established by the city of New 34 York. Deposits into any such revenue stabilization fund shall be deemed 35 to be expenses of such city in the fiscal year in which such deposits 36 are made, and withdrawals from such fund shall be deemed to be revenues 37 of such city in the year in which such withdrawals are made; provided 38 however, that surpluses of such city, whether accumulated from fiscal 39 years ending prior to the effective date of the chapter of the laws of 40 two thousand twenty that amended this paragraph or existing at the close 41 of any fiscal year ending after such effective date, shall be deposited 42 into such revenue stabilization fund as soon as practicable, and such 43 deposits shall not be deemed expenses of the city in the fiscal year in 44 which such deposits are made. 45 b. The limitations on its outstanding short-term obligations required 46 by subdivision nine of section three thousand thirty-eight of the public 47 authorities law and by section nine-b of this act shall be observed at 48 all times, as each is amended from time to time. 49 c. Provision shall be made for the payment in full of the debt 50 service on all bonds and notes of the city and the covered organizations 51 (other than notes held by the municipal assistance corporation for the 52 city of New York to the extent that such corporation has evidenced its 53 intention not to present such notes for payment during the fiscal year 54 in which the determination is made provided that such notes were held by 55 such corporation on June thirtieth, nineteen hundred seventy-eight or 56 were issued in exchange for or in refunding or renewal of notes held by

S. 8578 138 1 such corporation on such date) and to the extent the board deems neces- 2 sary or desirable to accomplish the purposes of this act, the city of 3 Staten Island, for the adequate funding of programs of the city, the 4 city of Staten Island, if applicable and the covered organizations which 5 are mandated by state or federal law and for which obligations are going 6 to be incurred during the fiscal year and for payment of a guarantee fee 7 or any other amounts required by the United States of America or any 8 agency or instrumentality thereof in connection with the guarantee of 9 the payment of the principal of or interest on bonds or notes issued by 10 the city. 11 d. All projections of revenues and expenditures contained in a finan- 12 cial plan shall be based on reasonable and appropriate assumptions and 13 methods of estimation. All cash flow projections shall be based upon 14 reasonable and appropriate assumptions as to sources and uses of cash 15 (including but not limited to the timing thereof), and shall provide for 16 operations of the city, the city of Staten Island, if applicable and 17 covered organizations to be conducted within the cash resources so 18 projected. 19 e. The city shall provide a general reserve for each fiscal year to 20 cover potential reductions in its projected revenues or increases in its 21 projected expenditures during each such fiscal year. The amount 22 provided for such general reserve shall be estimated by the city in 23 accordance with paragraph d of this subdivision, but in no event shall 24 it be less than one hundred million dollars at the beginning of any 25 fiscal year. 26 f. For financial plans beginning with the fiscal year ending June 27 thirtieth, nineteen hundred eighty-three or any succeeding fiscal year, 28 the first fiscal year included in any financial plan shall make 29 provision for the repayment of any deficit incurred by the city during 30 the preceding fiscal year. 31 2. In developing the financial plan the city shall seek to achieve a 32 stabilized work force for the city and, to the extent a reduction in the 33 work force is required, primary recourse shall be had to the attrition 34 process to accomplish such reduction. 35 2-a. The city and the board shall confer concerning the projected 36 effect on the budgets of the city and the covered organizations of any 37 change in generally accepted accounting principles, or change in the 38 application of generally accepted accounting principles to the city and 39 the covered organizations, made after the effective date of this act. 40 If the board determines that immediate compliance with such change will 41 have a material effect on such budgets over a time period insufficient 42 to accommodate the effect without a substantial adverse impact on the 43 delivery of essential services, the board may authorize and approve a 44 method of phasing the requirements of such change into such budgets over 45 such reasonably expeditious time period as the board deems appropriate. 46 3. The financial plan shall be developed and, during a control peri- 47 od, shall be approved, and may from time to time be modified, in accord- 48 ance with the following procedures: 49 a. The city shall, by June first, nineteen hundred seventy-eight, 50 prepare and submit a financial plan to the board covering the four year 51 period which begins with the fiscal year ending June thirtieth, nineteen 52 hundred seventy-nine. Thereafter, at least fifty days prior to the 53 beginning of each fiscal year or on such other date as the board may 54 approve upon the request of the city or the city of Staten Island, if 55 applicable, the city, and, during a control period, to the extent the 56 board deems necessary or desirable to accomplish the purposes of this

S. 8578 139 1 act, the city of Staten Island shall prepare and submit a financial plan 2 to the board covering the four year period beginning with such fiscal 3 year. On such dates the mayor shall also submit to the board the city's 4 executive expense, revenue and capital budgets for the ensuing fiscal 5 year and a certificate of the mayor stating that such budgets are 6 consistent with the financial plan submitted therewith, that projections 7 contained in the budgets and financial plan are based upon reasonable 8 and appropriate assumptions and methods of estimation, and that opera- 9 tion within the budgets is feasible. 10 b. (i) During a control period the board shall promptly review each 11 financial plan and financial plan modification submitted by the city or, 12 the city of Staten Island, if applicable. Not more than forty-five days 13 after submission of a financial plan or more than thirty days after 14 submission of a financial plan modification the board shall determine 15 whether the financial plan or financial plan modification is complete 16 and complies with the standards set forth in subdivision one of this 17 section and shall approve or disapprove the financial plan or financial 18 plan modification in accordance with the provisions of this section. If 19 the board determines that the financial plan or financial plan modifica- 20 tion is complete and complies with the standards set forth in subdivi- 21 sion one of this section, the board shall approve the financial plan or 22 financial plan modification. Upon making such determination the board 23 shall make a certification to the city or, the city of Staten Island, if 24 applicable, setting forth revenue estimates approved by the board in 25 accordance with such determination. 26 (ii) At all times other than during a control period the board shall 27 promptly review each financial plan and financial plan modification 28 submitted by the city. If the board determines after such review that 29 the financial plan or financial plan modification submitted by the city 30 is not in accordance with the standards set forth in subdivision one of 31 this section, the board shall promptly so notify the city and may take 32 such other action under this act as it deems appropriate. 33 c. The board shall disapprove a financial plan or financial plan 34 modification if during a control period it determines that the financial 35 plan or financial plan modification is incomplete or fails to comply 36 with the provisions of subdivision one of this section. In disapproving 37 a financial plan or a financial plan modification the board may order 38 that one or more of the following actions be taken: 39 (i) expenditures or reserves to assure availability of amounts 40 required for debt service requirements on all bonds and notes of the 41 city, the city of Staten Island, if applicable and the covered organiza- 42 tions or expenditures required for adequate funding of programs of the 43 city, the city of Staten Island, if applicable and the covered organiza- 44 tions mandated by state or federal law and for which obligations are 45 going to be incurred during the fiscal year, be increased to the levels 46 required to provide for their payment in full; 47 (ii) the revenue projections (or any item thereof) during any period 48 be adjusted to comply with the standards set forth in subdivision one of 49 this section; and 50 (iii) the aggregate expenditures projected for any period be reduced 51 to conform to revenue estimates certified by the board in order to 52 comply with the standards set forth in subdivision one of this section. 53 d. During a control period in the event that the city or the city of 54 Staten Island, if applicable shall, for any reason, fail to submit a 55 financial plan prior to the beginning of a fiscal year, as required by 56 paragraph a of this subdivision, or in the event that the board has not,

S. 8578 140 1 for any reason permitted under this act, approved a financial plan 2 submitted by the city or the city of Staten Island, if applicable prior 3 to the beginning of a fiscal year, the board shall formulate and adopt a 4 financial plan to be effective until the board approves a financial plan 5 submitted by the city or the city of Staten Island, if applicable. Any 6 financial plan so formulated by the board shall comply with the stand- 7 ards set forth in subdivision one of this section. The budgets and 8 operations of the city or the city of Staten Island, if applicable and 9 the covered organizations at all times shall be in conformance and 10 compliance with the respective financial plan then in effect. 11 e. After the initial adoption by the city, or the approval by the 12 board during a control period, or, during a control period, to the 13 extent the board deems necessary or desirable to accomplish the purposes 14 of this act, the initial adoption by the city of Staten Island, of a 15 financial plan, projections of revenues and expenditures and other esti- 16 mates contained in the financial plan shall be reexamined by the board 17 at least quarterly in consultation with the city and the covered organ- 18 izations, and during a control period the city or the city of Staten 19 Island, as applicable shall prepare and submit to the board financial 20 plan modifications at such times, in such detail and within such time 21 periods as the board may require in order to modify the respective 22 financial plan to conform to the standards set forth in subdivision one 23 of this section. During a control period in the event the board deter- 24 mines that (i) revenue estimates (or any item thereof) must be adjusted 25 to ensure compliance with the standards set forth in subdivision one of 26 this section, or (ii) that the city or a covered organization or the 27 city of Staten Island, as applicable is expending funds at a rate that 28 would cause expenditures to exceed the aggregate expenditure limitation 29 for the city or covered organization or the city of Staten Island, as 30 applicable provided for in the financial plan then in effect, prior to 31 the expiration of the fiscal year, the city or the city of Staten 32 Island, as applicable shall submit a financial plan modification to 33 effect such adjustments in revenue estimates and reductions in total 34 expenditures as may be necessary to conform to such standards or aggre- 35 gate expenditure limitations. If during a control period the city fails 36 to submit such modification after such determination as to adjustments 37 in revenue estimates or such determination as to rates of expenditures, 38 or to submit a financial plan modification in the detail or within the 39 time period specified by the board, or if such modification is disap- 40 proved by the board as not conforming to the standards set forth in 41 subdivision one of this section, the board may formulate and adopt such 42 financial plan modification as it deems appropriate to ensure that the 43 financial plan with respect to such entity continues to meet such stand- 44 ards. Such modification shall become effective on its adoption. 45 Notwithstanding the provisions of this section, in the event the city or 46 the city of Staten Island, as applicable shall determine that, due to 47 unforeseen events during a fiscal year, compliance with the standards 48 set forth in paragraph a of subdivision one of this section would result 49 in a material adverse impact upon the delivery of essential services, 50 the city or the city of Staten Island, as applicable shall notify the 51 board of such determination, together with such information, projections 52 or analyses relating thereto as the board may require, and shall submit 53 a modification to the financial plan reflecting such determination. 54 During a control period the board shall disapprove any such modification 55 unless it finds that (i) [~~the city's~~] such determination is supported by 56 information, projections and analyses which the board deems substantial-

S. 8578 141 1 ly accurate in all material respects and (ii) such events, in its judg- 2 ment, warrant such modification to the financial plan to avoid such 3 adverse impact on the delivery of essential services. 4 f. The city or the city of Staten Island may, from time to time, 5 submit financial plan modifications to each plan for review by the 6 board. During a control period the board shall approve such modifica- 7 tions unless it determines that such modifications would constitute 8 grounds for disapproval of the financial plan pursuant to paragraph c of 9 this subdivision, or if applicable, pursuant to paragraph e of this 10 subdivision. 11 g. Anything contained in this act to the contrary notwithstanding, 12 during a control period the board may at any time disapprove or after 13 consultation with the city or the city of Staten Island, as appropriate, 14 revise the revenue estimates (or any item thereof) prepared by the city 15 or the city of Staten Island in connection with the preparation of a 16 financial plan or any modification thereto and determined by the board 17 not to be based on assumptions and methods of estimation which are 18 reasonable and appropriate under the circumstances and in view of the 19 objectives and purposes of the act. The board may after consultation 20 with the city or the city of Staten Island, as appropriate, determine 21 the estimated revenues of the city or the city of Staten Island, as 22 appropriate, and the covered organizations provided, however, that any 23 revenues estimated by the board shall be based on reasonable and appro- 24 priate assumptions and methods of estimation. 25 4. Each financial plan shall be in such form and shall contain such 26 information for each year during which the financial plan is in effect 27 as the board may specify, and shall, in such detail as the board may 28 from time to time prescribe, include projections of all revenues, 29 expenditures and cash flows (including but not limited to projected 30 capital expenditures and debt issuances) and a schedule of projected 31 capital commitments of the city or the city of Staten Island, as appro- 32 priate, and except in such instances as the board may deem appropriate 33 each of the covered organizations. In addition, each financial plan and 34 financial plan modification shall include a statement of the significant 35 assumptions and methods of estimation used in arriving at the projec- 36 tions contained therein, set forth in such form and in such detail as 37 the board may from time to time prescribe. 38 5. The city and the covered organizations and during a control period 39 to the extent the board deems necessary or desirable to accomplish the 40 purposes of this act, the city of Staten Island shall promptly furnish 41 the board with any information which the board may request to satisfy 42 itself that (i) projected employment levels, collective bargaining 43 agreements and other action relating to employee costs, capital 44 construction and such other matters as the board may specify, are 45 consistent with the provisions made for such costs in the financial 46 plan, (ii) the city and the covered organizations or the city of Staten 47 Island, as appropriate are taking whatever action is necessary with 48 respect to programs mandated by state and federal law to ensure that 49 expenditures for such programs are limited to and covered by the expend- 50 itures stated in the financial plan, and (iii) adequate reserves are 51 provided to maintain programs mandated by state and federal law and for 52 which obligations are going to be incurred in the fiscal year and other 53 essential programs in the event revenues have been overestimated or 54 expenditures underestimated for any period. 55 6. For each financial plan and financial plan modification to be 56 prepared and submitted by the city to the board pursuant to the

S. 8578 142 1 provisions of this section, the covered organizations shall submit to 2 the city such information with respect to their projected expenditures, 3 revenues, cash flows and a schedule of projected capital commitments 4 for each year covered by such financial plan or modification as the city 5 shall determine. Notwithstanding any other provision of law limiting 6 the authority of the city with respect to any covered organization, the 7 city, in the preparation and submission of the financial plan and 8 modifications thereof, shall (except for debt service or for other 9 expenditures to the extent that such expenditures are required by law) 10 have the power to determine the aggregate expenditures to be allocated 11 to any covered organization in the financial plan and any modifications 12 thereto. 13 § 12-018. Section 9 of section 2 of chapter 868 of the laws of 1975, 14 constituting the New York state financial emergency act for the city of 15 New York, as amended by chapter 201 of the laws of 1978 and the section 16 heading and subdivisions 1 and 4 as amended by chapter 777 of the laws 17 of 1978, is amended to read as follows: 18 § 9. Establishment and application of the board fund. 1. There is 19 hereby established a fund designated the board fund. Commencing on 20 October twentieth, nineteen hundred seventy-five, and for the duration 21 of a control period, all revenues received or to be received by the city 22 or any covered organization and to the extent the board deems necessary 23 or desirable to accomplish the purposes of this act, the city of Staten 24 Island shall, unless exempted by order of the board, be revenues of the 25 board fund and shall be for the account of the city, the city of Staten 26 Island or the appropriate covered organizations, except (i) to the 27 extent expressly prohibited by federal law, (ii) where revenues of the 28 city are deposited in the general debt service fund, the TAN debt 29 service account or the RAN debt service account, or (iii) where such 30 revenues are pledged to the payment of any outstanding bonds, notes or 31 other obligations of covered organizations or state public authorities 32 as defined in section two hundred one of the civil service law. 33 Disbursement from the board fund shall be made by the board in accord- 34 ance with the approved financial plan except as provided in subdivision 35 five of this section nine. Commencing on October twentieth, nineteen 36 hundred seventy-five, and for the duration of a control period, all 37 funds and accounts established or thereafter established by the city, 38 the city of Staten Island or the covered organizations shall, unless 39 exempted by order of the board, thereafter be funds and accounts of the 40 board fund except to the extent expressly prohibited by federal law or 41 to the extent pledged by covenants or agreements relating to any 42 outstanding bonds, notes or other obligations of covered organizations 43 or public authorities as defined in section two hundred one of the civil 44 service law; and no monies or funds held in the general debt service 45 fund, the TAN debt service account or the RAN debt service account shall 46 be part of the board fund. All such accounts of the board shall have 47 such captions and entries as the board shall determine to be necessary 48 to credit the foregoing revenues and receipts to the board fund. The 49 monies of the fund shall not be deemed to be money of the state or money 50 under its control. 51 2. The deposit of revenues into the board fund and the investment or 52 deposit of monies therein shall be made in accordance with and pursuant 53 to procedures established by the board. 54 3. In order to assure compliance with the financial plan, the board 55 shall from time to time adopt procedures controlling the disbursement of 56 monies from the board fund. The board shall authorize the city or, if

S. 8578 143 1 applicable, the city of Staten Island to make all disbursements of 2 [~~city~~] such entity's revenues from the board fund, which disbursements 3 shall be made in accordance with the approved financial plan; provided, 4 that the board may withdraw such authorization if it determines that (a) 5 any disbursements made or to be made by the city or, if applicable, the 6 city of Staten Island have not been or are likely not to be in compli- 7 ance with the approved financial plan, (b) the city or, if applicable, 8 the city of Staten Island has violated any other provisions of this act, 9 or (c) the city has violated an agreement with any holder or guarantor 10 of bonds or notes issued by the city or a state financing agency. 11 4. Within the board fund there is hereby established a special 12 account designated the debt service repayment account. The board shall 13 from time to time direct, in accordance with procedures adopted by the 14 board, the deposit in the debt service repayment account of such amounts 15 as the board shall, in its discretion, determine to be sufficient to 16 meet the debt service requirements of the covered organizations on their 17 bonds and notes (other than bonds and notes of covered organizations 18 payable from revenues not included in the board fund) as they become 19 due. Amounts in the debt service repayment account shall be used to 20 meet such debt service requirements of the covered organizations. 21 5. If at any time the board determines that the amount then held in 22 the board fund or the amount estimated by the board to be held in the 23 board fund is or will be insufficient to meet the expenditures in the 24 amounts and at the times required by the financial plan, the board shall 25 require disbursements from the board fund to be made in the following 26 order or priority unless otherwise required by law of the United States 27 of America: (i) the payment of amounts from the appropriate account of 28 the board fund to the debt service repayment account, the general debt 29 service fund, the TAN debt service account and the RAN debt service 30 account, to maintain therein the amount required, to meet debt service 31 requirements of the city, the city of Staten Island, if appropriate and 32 the covered organizations on their bonds and notes as they may become 33 due, (ii) the payment of other liabilities having statutory or contrac- 34 tual priority over remaining liabilities of the city , the city of 35 Staten Island, if appropriate and the covered organizations whose monies 36 are included in the board fund, and (iii) the payment of other obli- 37 gations on an allocated basis as specified by the city or, the city of 38 Staten Island, if appropriate, for expenditures in accordance with the 39 financial plan provided that, in the event that the city or, the city of 40 Staten Island, if appropriate, fails to so specify, the board may with- 41 hold payment of any of such other obligations or may direct their 42 payment pro rata. 43 6. The board shall cause to be performed such pre-audit and post-au- 44 dit reviews of the board funds and disbursements therefrom as it may 45 determine. 46 § 12-019. Section 9-a of section 2 of chapter 868 of the laws of 1975, 47 constituting the New York state financial emergency act for the city of 48 New York, as added by chapter 201 of the laws of 1978, subdivisions 1, 49 2, 3, 4, 6, 7, 8, 9 and 11 as amended, subdivision 10 as renumbered and 50 amended and subdivision 12 as added by chapter 777 of the laws of 1978, 51 is amended to read as follows: 52 § 9-a. Establishment and application of a general debt service fund. 53 1. Commencing on the first day of the first full fiscal quarter subse- 54 quent to the first sale of a federally guaranteed city obligation, the 55 city shall establish a general debt service fund for the purpose of 56 paying debt service due or becoming due in the then current fiscal year

S. 8578 144 1 and in subsequent fiscal years until the later of (i) the termination 2 date of this act or (ii) the date when all general obligation bonds of 3 the city outstanding as of the establishment of the city of Staten 4 Island have been paid or payment therefor has been provided for in 5 accordance with their terms. All monies in the fund shall be held by 6 the comptroller, who shall administer and maintain the fund in accord- 7 ance with the provisions of this section. 8 2. All payments of or on account of real estate taxes or assessments 9 due to the city or the city of Staten Island, other than the proceeds of 10 tax anticipation notes, shall be immediately upon receipt deposited in 11 an account designated for the municipality to which payment was due 12 established in such fund. The comptroller shall retain, disburse and 13 apply monies in the fund during each month as follows: 14 a. During the first month of each fiscal quarter, there shall be 15 retained in the fund, subject to the provisions of subdivision three of 16 this section, all real estate tax payments deposited in the fund until 17 there shall have been retained from monies so deposited during such 18 month in the applicable account an amount equal to the total monthly 19 debt service, computed as of the date of any disbursement of money from 20 the fund, for the second and third months of such fiscal quarter; 21 provided that such amount shall be reduced by any amount already on 22 deposit in the fund which may be used to pay the monthly debt service 23 for such months. 24 Amounts to be on deposit in such accounts shall be determined as 25 follows: (i) with respect to the account of the city, debt service shall 26 include payments with respect to (a) all bonds and notes of the city 27 issued on or after the date of establishment of the city of Staten 28 Island and (b) all bonds or notes of the city prior thereto multiplied 29 by a fraction, the numerator of which is the total assessed valuation of 30 all taxable real property located in the city as of the date of such 31 establishment and the denominator of which is the total assessed valu- 32 ation of all taxable real property located in the city and the city of 33 Staten Island combined as of the date of such establishment and (ii) 34 with respect to the account of the city of Staten Island, debt service 35 shall include payments with respect to (a) all bonds or notes of the 36 city of Staten Island and (b) all bonds or notes of the city issued 37 prior to the establishment of the city of Staten Island multiplied by a 38 fraction, the numerator of which is the total assessed valuation of all 39 taxable real property located in the city of Staten Island as of the 40 date of such establishment and the denominator of which is the same as 41 in clause (b) of subparagraph (i) of this paragraph. To the extent 42 either account contains insufficient amounts to make payments on the 43 respective allocable portion of city bonds or notes issued prior to the 44 establishment of the city of Staten Island and such municipalities own 45 bonds or notes issued subsequent thereto, amounts on deposit in the 46 account of the other municipality in excess of the amounts required to 47 provide for payment of such latter municipality's own bonds or notes 48 issued subsequent to such establishment and allocable portion of city 49 bonds or notes issued prior thereto, shall be retained in such account 50 and applied to the payment of bonds or notes of the city issued prior to 51 such establishment to the extent of any insufficiency in such accounts. 52 For purposes of this section, fiscal quarter shall mean the three- 53 month period beginning July first, October first, January first or April 54 first, and monthly debt service shall mean, as of any date of computa- 55 tion, the amount of monies equal to the aggregate of (i) all interest 56 payable during such month on bonds and notes of the city or the city of

S. 8578 145 1 Staten Island, as applicable, plus (ii) the amount of principal (includ- 2 ing payments into sinking funds) maturing or otherwise coming due during 3 such month on all bonds of the city or the city of Staten Island, as 4 applicable, (excluding principal payments made from sinking funds 5 required by the terms of certain city or the city of Staten Island, as 6 applicable, bonds), plus (iii) the amount of principal to be paid on 7 notes of the city or the city of Staten Island, as applicable, during 8 such month from sources other than the proceeds of bonds or renewal 9 notes (exclusive of revenue anticipation notes and tax anticipation 10 notes or renewals thereof issued less than two years prior to the date 11 of computation). 12 b. During the second and third months of each fiscal quarter, there 13 shall be retained in the fund, subject to the provisions of subdivision 14 three of this section, all real estate tax payments deposited in the 15 fund until there shall have been retained from monies so deposited 16 during such month an amount equal to the total monthly debt service, 17 computed as of the date of any disbursement of monies from the fund, for 18 the first month of the next succeeding fiscal quarter; provided that 19 such amount shall be reduced by any amount already on deposit in the 20 fund which may be used to pay the monthly debt service for such month. 21 c. During any month of a fiscal quarter, after the retentions 22 required by paragraphs a and b of this subdivision have been made for 23 such month, the comptroller shall deposit any remaining balance of real 24 estate taxes received during such month, first into the TAN debt service 25 account to the extent required under subdivision six of this section, 26 and second into the board fund to be applied in accordance with proce- 27 dures of the board. 28 d. The city may at any time pay into the fund any monies required by 29 law to be used to pay monthly debt service and any other monies avail- 30 able for such purpose. 31 3. The board may approve, subject to agreements made with the holders 32 or guarantors of outstanding notes or bonds issued by or for the benefit 33 of the city after the effective date of this act, criteria for calculat- 34 ing a proportion of real estate tax receipts to be retained in the fund 35 in order to provide for the retention of amounts required by the 36 provisions of subdivision two of this section in lieu of the retention 37 of all initial receipts as required by such subdivision; provided, that 38 if the board at any time determines that retentions in the fund pursuant 39 to the provisions of such subdivision are or are likely to be insuffi- 40 cient to provide for the payment of monthly debt service when due, in 41 order to ensure that the amounts on deposit in the fund will be suffi- 42 cient to pay monthly debt service when due, the board shall require (i) 43 that real estate tax receipts be retained in the fund in greater amounts 44 or at earlier dates than the provisions of such subdivision require, or 45 (ii) that other revenues or cash resources of the city be paid into the 46 fund. The board shall consider the impact of earlier or larger 47 retention of real estate tax receipts on the city's seasonal borrowing 48 requirements when determining whether it shall require such additional 49 retention or that other revenues or cash resources of the city be paid 50 into the fund. Prior to the issuance by the city of any bonds or notes, 51 the board shall review any criteria then in effect which determine the 52 proportion of real estate tax receipts to be retained in the fund to 53 determine whether the proposed debt service schedule for such bonds or 54 notes is consistent with the monies which will be available therefor or 55 whether such criteria should be revised. The board shall from time to 56 time take such action as it determines is necessary, including disap-

S. 8578 146 1 proval of a proposed issue pursuant to paragraph f of subdivision one of 2 section seven, so that the monies in the fund shall be adequate to meet 3 debt service requirements. 4 4. Commencing on the first day of the second month of the first full 5 fiscal quarter subsequent to the first sale of a federally guaranteed 6 city obligation, the payment of monthly debt service shall be made, 7 first, from amounts retained in the fund. Amounts retained in the fund 8 shall be used only to pay debt service of the city. 9 5. Upon the issuance of any tax anticipation notes following the 10 effective date of this act, the comptroller shall establish and, so long 11 as any tax anticipation notes shall be outstanding, shall maintain a tax 12 anticipation note debt service account within the fund for the purpose 13 of paying the principal of tax anticipation notes. 14 6. The city shall determine the date on which the principal due or to 15 become due on an outstanding issue of tax anticipation notes shall equal 16 ninety percent of the available tax levy with respect to such issue, and 17 upon reasonable notice thereof the comptroller shall commence on such 18 date to pay into the TAN debt service account from collections of such 19 taxes and assessments, after retaining amounts required to be deposited 20 in the fund, amounts sufficient to pay when due, the principal of such 21 issue of tax anticipation notes. The payments of the principal of tax 22 anticipation notes shall be made, first, from amounts retained in the 23 TAN debt service account. 24 7. Upon the issuance of any revenue anticipation notes following the 25 effective date of this act, the comptroller shall establish and, so long 26 as any revenue anticipation notes shall be outstanding, shall maintain a 27 revenue anticipation note debt service account within the fund for the 28 purpose of paying the principal of revenue anticipation notes. Each 29 specific type of revenue in anticipation of which such notes are issued 30 and available for such purpose shall be deposited in such account imme- 31 diately upon receipt by the city. Where such revenue consists of state 32 aid or other revenue to be paid to the city by the comptroller, on the 33 date such revenue is payable to the city, the comptroller shall deposit 34 such revenue directly into such account in lieu of payment to the city. 35 All revenues deposited in the RAN debt service account shall be paid 36 immediately into the board fund except as otherwise provided in subdivi- 37 sion eight of this section. 38 8. The city shall determine the date on which the principal due or to 39 become due on an outstanding issue of revenue anticipation notes shall 40 equal ninety percent of the total amount of revenue against which such 41 notes were issued remaining to be paid to the city on or before the 42 fifth day prior to the maturity date of such notes and upon reasonable 43 notice thereof the comptroller shall commence on such date to retain in 44 the RAN debt service account from amounts deposited or to be deposited 45 therein of each specific type of revenue in anticipation of which reven- 46 ue such anticipation notes were issued, an amount sufficient to pay, 47 when due, the principal of such revenue anticipation notes. Monies 48 retained in such account shall vest immediately in the comptroller in 49 trust for the benefit of the holders of the revenue anticipation notes 50 in anticipation of which such notes were issued. No person having any 51 claim of any kind in tort, contract or otherwise against such city shall 52 have any right to or claim against any monies of the state appropriated 53 by the state and in anticipation of which such notes have been issued, 54 other than a claim for payment by the holders of such notes, and such 55 monies shall not be subject to any order, judgment, lien, execution, 56 attachment, setoff or counter-claim by any such person; provided, howev-

S. 8578 147 1 er, that nothing contained in this paragraph shall be construed to 2 limit, impair, impede or otherwise adversely affect in any manner the 3 rights or remedies of the purchasers and holders and owners of any bonds 4 or notes of the state or any agency, instrumentality, public benefit 5 corporation or political subdivision thereof, including the city of New 6 York, under which such purchasers and holders and owners have any right 7 of payment of such bonds or notes by recourse to state aid or local 8 assistance monies held by the state or for the payment of which bonds or 9 notes state aid or local assistance monies are a designated source. The 10 payment of the principal of revenue anticipation notes shall be made 11 first from amounts retained in the RAN debt service account. 12 9. Whenever the amount contained in the TAN debt service account or 13 the RAN debt service account exceeds the amount required to be retained 14 in such account such excess monies, including earnings on investments of 15 monies in the fund, shall be withdrawn from such account and paid into 16 the board fund. 17 10. Subject to agreements made with holders or guarantors of 18 outstanding notes or bonds issued by or for the benefit of the city 19 after the effective date of this act, the comptroller shall invest the 20 monies retained in the fund in accordance with law. 21 11. The limitations imposed upon the city by this section shall be in 22 addition to any limitations imposed upon the city or the city of Staten 23 Island under the local finance law. In the event any provisions of the 24 local finance law shall be inconsistent with the provisions of this 25 section, the provisions of this section shall prevail. The requirements 26 of this section shall not apply to any note of the city held by the 27 municipal assistance corporation for the city of New York to the extent 28 that such corporation has evidenced its intention not to present such 29 notes for payment during the fiscal year in which the determination is 30 made provided that such notes were held by such corporation on June 31 thirtieth, nineteen hundred seventy-eight or were issued in exchange for 32 or in refunding or renewal of notes held by such corporation on such 33 date. 34 12. Notwithstanding any other provision of this section, the city and 35 the city of Staten Island, if applicable, may, at any time, subject to 36 approval by the comptroller, designate a trust company or bank having 37 its principal place of business in the state of New York and having the 38 powers of a trust company in the state of New York to hold all or any 39 part of the monies in the fund and to administer and maintain the monies 40 so held in accordance with the applicable provisions of this section and 41 any agreements made pursuant thereto. 42 § 12-020. Section 11 of section 2 of chapter 868 of the laws of 1975, 43 constituting the New York state financial emergency act for the city of 44 New York, subdivisions 1 and 3 as amended by chapter 777 of the laws of 45 1978, is amended to read as follows: 46 § 11. Prohibitions; penalties. 1. During a control period, (i) no 47 officer or employee of the city or of any of the covered organizations 48 or to the extent the board deems necessary or desirable to accomplish 49 the purposes of this act, the city of Staten Island shall make or 50 authorize an obligation or other liability in excess of the amount 51 available therefor under the financial plan as then in effect; (ii) no 52 officer or employee of the city or of any of the covered organizations 53 or the city of Staten Island shall involve the city, the city of Staten 54 Island, if applicable or any of the covered organizations in any 55 contract or other obligation or liability for the payment of money for 56 any purpose required to be approved by the board unless such contract,

S. 8578 148 1 obligation or liability has been so approved or deemed to be approved as 2 provided in paragraphs e and f of subdivision one of section seven and 3 unless such contract or obligation or liability is in compliance with 4 the financial plan as then in effect. 5 2. No officer or employee of the city or any of the covered organiza- 6 tions, or, the city of Staten Island, if applicable, shall take any 7 action in violation of any valid order of the board or shall fail or 8 refuse to take any action required by any such order or shall prepare, 9 present or certify any information (including any projections or esti- 10 mates) or report for the board or any of its agents that is false or 11 misleading, or, upon learning that any such information is false or 12 misleading, shall fail promptly to advise the board or its agents there- 13 of. 14 3. In addition to any penalty or liability under other law, any offi- 15 cer or employee of the city or any of the covered organizations, or, the 16 city of Staten Island, if applicable, who shall knowingly and willfully 17 violate subdivision one or two of this section shall be subject to 18 appropriate administrative discipline, including, when circumstances 19 warrant, suspension from duty without pay or removal from office by 20 order of either the governor or the mayor or the mayor of the city of 21 Staten Island, if applicable, and shall, upon conviction, be guilty of a 22 misdemeanor. 23 4. In the case of a violation of subdivision one or two of this 24 section by an officer or employee of the city, or, the city of Staten 25 Island, if applicable, or any of the covered organizations, the mayor or 26 the mayor of the city of Staten Island, if applicable, or the chief 27 executive officer of such covered organization shall immediately report 28 to the board all pertinent facts together with a statement of the action 29 taken thereon. 30 § 13-001. Section 25-a of the general city law is amended by adding a 31 new undesignated paragraph to read as follows: 32 For the purposes of this article, a city which is incorporated on or 33 after the first of January next succeeding the date on which this para- 34 graph shall have become a law and which is comprised of a geographical 35 area which on the date immediately prior to such incorporation had been 36 wholly contained within a city with a population of one million or more 37 shall continue to be treated as a city with a population of one million 38 or more. 39 § 13-002. Section 25-w of the general city law is amended by adding a 40 new subdivision (g) to read as follows: 41 (g) For the purposes of this article, a city which is incorporated on 42 or after the first of January next succeeding the date on which this 43 subdivision shall have become a law and which is comprised of a 44 geographical area which on the date immediately prior to such incorpo- 45 ration had been wholly contained within a city with a population of one 46 million or more shall continue to be treated as a city with a population 47 of one million or more. 48 § 13-003. Section 1 of chapter 772 of the laws of 1966 relating to 49 imposition of a city business tax is amended by adding a new undesig- 50 nated paragraph to read as follows: 51 For the purposes of this section, a city which is incorporated on or 52 after the first of January next succeeding the date on which this para- 53 graph shall have become a law and which is comprised of a geographical 54 area which on the date immediately prior to such incorporation had been 55 wholly contained within a city with a population of one million or more

S. 8578 149 1 shall continue to be treated as a city with a population of one million 2 or more. 3 § 13-004. Section 2 of chapter 772 of the laws of 1966 relating to 4 imposition of a city business tax is amended by adding a new undesig- 5 nated paragraph to read as follows: 6 For the purposes of this section, a city which is incorporated on or 7 after the first of January next succeeding the date on which this para- 8 graph shall have become a law and which is comprised of a geographical 9 area which on the date immediately prior to such incorporation had been 10 wholly contained within a city with a population of one million or more 11 shall continue to be treated as a city with a population of one million 12 or more. 13 § 13-005. Section 1301 of the tax law is amended by adding a new 14 subsection (f) to read as follows: 15 (f) For the purposes of this article, a city which is incorporated on 16 or after the first of January next succeeding the date on which this 17 subsection shall have become a law and which is comprised of a geograph- 18 ical area which on the date immediately prior to such incorporation had 19 been wholly contained within a city with a population of one million or 20 more shall continue to be treated as a city with a population of one 21 million or more. 22 § 14-001. The administrative code of the city of Staten Island is 23 enacted to read as follows: 24 Title 6 - General Services and Contracting 25 § 6-101 Definitions. As used in this title: 26 1. "Commissioner" shall mean the commissioner of the department of 27 general services and contracting. 28 2. "Department" shall mean the department of general services and 29 contracting. 30 § 6-102 Commissioner. The head of the department shall be the commis- 31 sioner. 32 § 6-103 Powers and duties. The commissioner shall have the power and 33 it shall be his or her duty to perform all the functions and operations 34 of the city of Staten Island relating to the construction, maintenance 35 and care of public buildings and facilities; the procurement of goods 36 and other personal property; the disposition of surplus property; the 37 providing to city agencies of services other than personal services; the 38 acquisition, disposition and management by the city of real property 39 other than housing; the providing of automotive, communication, energy 40 and data processing services including without limitation: 41 1. Procurement of goods, other personal property and services. With 42 respect to the procurement and disposal of goods and other personal 43 property and the procurement of services other than personal services, 44 the commissioner shall have the following power and duties: 45 (a) to purchase, inspect, store and distribute all goods, supplies, 46 materials, equipment and other personal property required by any city 47 agency, except as otherwise provided by law, or by any office of any 48 county wholly included in the city for which supplies, materials or 49 equipment are required, payment for which is made from the city treas- 50 ury; 51 (b) to establish and maintain one or more city storehouses, operating 52 therein a modern system of stores control to supply the estimated 53 current needs of the agencies for which the commissioner is authorized 54 to purchase. All purchases other than such purchases for stock for 55 estimated needs and all deliveries from such stock shall be upon justi- 56 fied requisitions. The commissioner shall also oversee the establish-

S. 8578 150 1 ment of efficient and economical systems of stores control in other city 2 agencies and review the operations of such storehouses to assure their 3 efficient and economical management; 4 (c) to receive all surplus and obsolete personal property not required 5 by any agency for which the commissioner has the power to make purchases 6 and all such agencies shall surrender such property to the commissioner 7 who shall dispose thereof pursuant to rules promulgated by him or her 8 governing its redistribution, exchange, transfer, sale or other disposi- 9 tion; 10 (d) to procure, supply and manage contractual services other than 11 personal or professional services for the use of city agencies; 12 (e) to promulgate rules governing the purchase, payment, storage, and 13 delivery of goods, supplies, materials and equipment by agencies of the 14 city and the disposal of surplus and obsolete materials, and to super- 15 vise their enforcement; and 16 (f) to classify all goods, supplies, materials and equipment. 17 2. Energy; gas and electricity. The commissioner shall have charge and 18 control of furnishing the city or any part thereof, by contract or 19 otherwise, with gas, electricity, steam, hot water or other energy 20 source, except such functions as are exercised by the public utility 21 service of the city. 22 3. Data processing services; information technology and telecommuni- 23 cations. (a) For purposes of this title "telecommunications" shall mean 24 transmission of writings, signals, pictures, numbers and sounds or 25 intelligence of all kinds by and of wire, cable, optical fiber, radio, 26 satellite, electromagnetic wave, microwave or other like connection 27 between points of origin and reception of such transmission, including 28 all instrumentalities, facilities, apparatus and services incidental to 29 such transmission. 30 (b) The commissioner shall provide data processing support, program- 31 ming, and computer systems analysis services for city agencies when 32 necessary or desirable, in accordance with executive orders promulgated 33 by the mayor. 34 (c) In addition, the commissioner shall have further powers and 35 duties: 36 (i) to plan, formulate, coordinate and advance information technology 37 and telecommunications policy for the city; 38 (ii) to develop, maintain and implement a long range telecommuni- 39 cations strategy; 40 (iii) to administer, subject to the approval of the council where 41 applicable, all franchises and revocable consents relating to telecommu- 42 nications including without limitation, proposing authorizing resol- 43 utions for telecommunications, franchises, developing and issuing 44 requests for proposals or other solicitations of proposals for telecom- 45 munications franchises, selecting telecommunications franchises, review- 46 ing and approving petitions for revocable consents relating to telecom- 47 munications, negotiating the terms of contracts or other agreements 48 relating to telecommunications franchises and revocable consents, 49 enforcing the terms and conditions of such agreements; 50 (iv) to develop municipal uses of cable television and coordinate 51 interagency uses of cable television and other telecommunications; 52 (v) to ensure that priority is given on at least one municipal channel 53 to the cable casting of the public proceedings of the council and its 54 committees, the city planning commission and other state and city agen- 55 cies;

S. 8578 151 1 (vi) to provide to city agencies such land-based and wireless voice, 2 data, video or other communication facilities, and technical assistance 3 or other assistance with respect to such facilities, as they may require 4 for the effective discharge of their responsibilities; 5 (vii) to participate in developing, maintaining and implementing a 6 long-range computer system and data communications strategy for the 7 city; 8 (viii) to assist in providing interagency coordination on matters 9 related to data communications activities and interfacing of computers; 10 (ix) to provide appropriate, reliable, cost-effective and responsive 11 computer and data communications services to agencies that require such 12 services by purchasing and maintaining hardware, software and such other 13 goods and services as may be necessary to effectively discharge the 14 powers and duties of the department; 15 (x) to provide assistance to agencies in meeting their data processing 16 and data communications objectives; 17 (xi) to provide agencies using or proposing to use the services of 18 this department with technical assistance in determining feasibility and 19 resource requirements; 20 (xii) to simplify access to shared information, reduce communication 21 costs and provide access to multiple computer systems by connecting 22 computers and terminals of various city agencies, and of other public 23 entities requesting such connection where such provision to such other 24 entities would in the judgment of the commissioner be in the city's 25 interests; 26 (xiii) to plan and provide telecommunications coordination in support 27 of disaster recovery; 28 (xiv) to ensure security for data and other information handled by 29 this department; 30 (xv) to institute procedures to assure restrictions of access to 31 information to the appropriate individuals, where such restrictions are 32 required by law; and 33 (xvi) to perform such other responsibilities with respect to informa- 34 tion technology and telecommunications matters, including responsibil- 35 ities delegated elsewhere by the code, as the mayor shall direct. 36 4. Automotive services. The commissioner shall acquire by purchase, 37 lease or otherwise, vehicles and other automotive equipment for the use 38 of city agencies; manage, maintain, store and operate a fleet of motor 39 vehicles; assign fleets to agencies in accordance with the direction of 40 the mayor and ensure the effective operation of all shops, yards, 41 garages, fuel depots and other facilities required for the maintenance 42 of fleets operated by agencies; and ensure the maintenance of records 43 for all city owned vehicles. 44 5. Right of entry. The commissioner, officers and employees of the 45 department may, in accordance with law, enter upon public or private 46 property for the purpose of making surveys, borings or other investi- 47 gations necessary for the exercise of powers or the performance of the 48 duties of the commissioner and the department. Refusal to permit such 49 entry shall be a misdemeanor punishable by not more than thirty days 50 imprisonment or by a fine of not more than $50.00, or both. 51 § 6-104 Emergency communications systems of other agencies. With 52 respect to emergency communications systems and emergency communications 53 facilities administered by another agency or another municipality, the 54 department shall exercise its powers and duties only as the mayor shall 55 direct or at the request of such agency.

S. 8578 152 1 § 6-105 Records and information services. Within the department there 2 shall be a division of records and information services which shall 3 include, but not be limited to, municipal archives, a municipal refer- 4 ence and research center and a municipal records management division. 5 1. The division shall be responsible for the maintenance, access to 6 and preservation of records of the city. In addition, the division shall 7 develop and promulgate standards and procedures to effectively perform 8 those duties. 9 The division shall provide appropriate information and assistance to 10 the mayor and to members of the council. It shall also provide, within 11 reasonable limits, access to the public to records, books and documents 12 within its care and control. 13 2. The division is authorized to arrange for the exchange, sale, 14 purchase and loan of information materials from and with legislative 15 research services, libraries and institutions in other municipalities, 16 governmental bodies and public authorities. 17 3. The division shall: 18 (a) provide for the distribution of publications of the city, where 19 such authority is not vested in another city agency, and issue at regu- 20 lar intervals, no less than quarterly, a bulletin describing its facili- 21 ties and resources; 22 (b) institute actions in replevin to recover any historical and/or 23 other documents properly owned by, or originating from, the county of 24 Richmond prior to the creation of the preceding municipality; 25 (c) report annually by the thirtieth of September to the mayor, and 26 council on the powers and duties herein-mentioned including, but not 27 limited to, the cost of savings effectuated by the division during the 28 preceding fiscal year. 29 § 6-106 Departmental libraries. The commissioner shall analyze the 30 needs of each city agency, except the law department, with respect to 31 the establishment and maintenance of any library or research facility 32 therein, and make such recommendations as may be appropriate in the 33 circumstances. Any libraries or research facilities so established 34 shall, among any of its other duties, be responsible for the mainte- 35 nance, access to and preservation of records within its care and 36 control. 37 Title 7 - Legal Affairs 38 § 7-102 Department; corporation counsel. 1. There shall be a law 39 department the head of which shall be the corporation counsel. 40 2. The first assistant corporation counsel, appointed by the corpo- 41 ration counsel, during absence, disability or the vacancy of the office 42 of the corporation counsel, shall assume all powers and perform all 43 duties of the corporation counsel and shall act as corporation counsel 44 until a new appointment is made. 45 3. The corporation counsel may empower, by written authority filed 46 and remaining on record in the department, any of the assistants to 47 perform certain duties of the corporation counsel. 48 § 7-103 Powers and duties. The corporation counsel shall: 49 1. be attorney and counsel for the city and every agency thereof and 50 shall have charge of and conduct all the law business of the city and 51 its agencies; 52 2. have charge of and conduct the legal proceedings necessary in open- 53 ing, widening, altering and closing streets and in acquiring real estate 54 or in city condemnation proceedings; 55 3. have charge of and conduct the preparation of all leases, deeds, 56 contracts, bonds and all other legal papers for the city or connected

S. 8578 153 1 agency or officer thereof; and the corporation counsel shall approve the 2 form of all such deeds, bonds, contracts, leases and legal papers; 3 4. have the right to institute actions in law or equity to maintain, 4 defend and establish the rights, interests, revenues, property, privi- 5 leges, franchises or demands of the city or the people thereof, and to 6 collect any money, debts, fines or penalties or enforce the laws; 7 5. not be empowered to compromise, settle or adjust any rights, 8 claims, demands or causes of action in favor of or against the city, to 9 offer or confess judgment against the city or accept any offer of judg- 10 ment in favor of the city without the approval of the comptroller; and 11 6. have the authority to assign one or more assistants to any agency; 12 and the head of each agency may employ staff counsel to assist in legal 13 affairs of the agency. 14 § 7-104 Legal authority. 1. All actions and proceedings for the 15 recovery of penalties for the violation of any law shall be brought in 16 the name of the city and not in that of any agency. 17 2. The mayor may delegate to any agency, after consultation with the 18 corporation counsel and head of the agency, responsibility for the 19 conduct of routine legal affairs of the agency. 20 3. The mayor may assign or transfer attorneys from the law department 21 of the agency to assist in such delegated functions. 22 4. The corporation counsel shall monitor and evaluate on a regular 23 basis the exercise of authority delegated. 24 5. The mayor, upon recommendation of the corporation counsel, may 25 suspend or withdraw any delegated authority whenever in his or her judg- 26 ment the interests of the city justify such action. 27 § 7-105 City sheriff; powers and duties. 1. There shall be a city 28 sheriff who shall be appointed by the mayor. 29 2. Except as otherwise provided by law, the functions, powers and 30 duties formerly exercised by the sheriff of the preceding municipality 31 as of the date of establishment of the city of Staten Island shall 32 remain with the city sheriff. 33 § 7-106 City clerk; powers and duties. The city clerk shall: 34 1. be the chief archivist of the city and shall advise the mayor and 35 council on those matters concerning the preservation of the city's 36 historical documentation; 37 2. act as the chief reference and research librarian for the mayor and 38 council and shall ensure that all significant materials pertaining to 39 operations of the city be preserved and readily available for use; 40 3. act as the chief public records officer for the mayor and council 41 and shall, except as otherwise provided by law, establish standards for 42 the proper records management in any agency or government instrumentali- 43 ty funded in whole or in part from local tax levy monies; and 44 4. have the power formerly exercised or delegate any of the functions 45 and duties vested in such city clerk by law of the preceding munici- 46 pality as it existed on the date of establishment. 47 Title 8 - Reserved 48 Title 9 - Criminal Justice 49 Chapter 1 50 Department of Corrections 51 § 9-101 Definitions. As used in this title:

S. 8578 154 1 1. "Commissioner" shall mean the commissioner of the department of 2 corrections. 3 2. "Department" shall mean the department of corrections. 4 3. "Division" shall mean the division of juvenile justice. 5 § 9-102 Commissioner. The head of the department shall be the commis- 6 sioner of corrections. 7 § 9-103 Powers and duties of commissioner. 1. The commissioner shall 8 have: 9 a. charge and management of all institutions of the city (including 10 all hospital wards) for the care and custody of felons; misdemeanants; 11 all prisoners under arrest and waiting arraignment (including those who 12 require hospital care and/or psychiatric observation or treatment); 13 violators of ordinances or local laws and for the detention of any 14 witnesses who are unable to furnish security for their appearance in 15 criminal proceedings; 16 b. sole power and authority concerning the care, custody and control 17 of all court pens for the detention of prisoners while in custody of the 18 state of New York within the city of Staten Island, the family court of 19 the state of New York, the supreme court in the county of Richmond and 20 of all vehicles employed in the transportation of prisoners who have 21 been sentenced, are awaiting trial or being held for other cause; 22 c. charge and management of persons or any other institution of the 23 city placed under his or her jurisdiction; 24 d. all authority concerning the care and custody of felons, misdemean- 25 ants or violators of local laws held in institutions under his or her 26 jurisdiction; 27 e. all authority in relation to the custody and transportation of 28 persons held for any criminal proceedings, all prisoners under arrest 29 and waiting arraignment (including those requiring hospital care and/or 30 psychiatric treatment) in the city; and 31 f. supervision and responsibility for the planning and implementation 32 of re-training, counseling, and rehabilitative programs for felons, 33 misdemeanants and violators of local laws who are held in institutions 34 under his or her charge. 35 2. The commissioner shall maintain and operate buildings and struc- 36 tures under his or her jurisdiction and may construct additions and make 37 repairs to such buildings by use of the labor of persons under his or 38 her care and custody. 39 § 9-104 Labor of prisoners. 1. Every inmate of an institution under 40 the authority of the commissioner shall be employed in some form of 41 industry, farming operations or other employment and any products there- 42 of shall be utilized in the institutions under the commissioner's juris- 43 diction. 44 2. Any persons held for trial may be employed in the same manner as 45 sentenced prisoners; however, such sentenced prisoners must give their 46 consent in writing. 47 3. Inmates and/or prisoners held for trial may be detailed by the 48 commissioner to perform work or service on the grounds, buildings, or on 49 any public improvement under the charge of any other agency. 50 Chapter 2 51 Division of Juvenile Justice 52 § 9-201 The division of juvenile justice; director. 1. There shall be 53 within the department of corrections a division of juvenile justice.

S. 8578 155 1 2. The head of the division shall be the director of juvenile justice. 2 § 9-202 Powers and duties of director. The director shall: 3 1. establish, initiate, control, maintain and operate secure and non- 4 secure facilities for the temporary care and maintenance of children 5 alleged to be or adjudicated as juvenile delinquents. 6 2. have the power to contract with other public and private agencies 7 for services in order to ensure adequate, suitable and accessible accom- 8 modations and that proper care will be available when required for 9 detention. 10 3. establish regulations for the operation of secure and non-secure 11 detention facilities and shall provide or secure the availability of 12 accessible and adequate non-secure detention facilities certified by 13 the state division of youth. 14 4. develop, implement and maintain systems to collect, store and 15 disseminate information concerning juvenile delinquency, juvenile crime 16 and the juvenile justice system. 17 5. participate with other city agencies in development, implementation 18 and maintenance of juvenile justice information. 19 Title 10 - Reserved 20 TITLE 11 21 TAXATION AND FINANCE 22 CHAPTER 1 23 DEPARTMENT OF FINANCE 24 § 11-001 Definitions and applicability. Any terms in this title refer- 25 ring to a governmental entity of the preceding municipality shall be 26 deemed to refer to such entity of the preceding municipality or its 27 successor entity under the city of Staten Island. Any action taken in 28 compliance with the provisions of this title prior to the incorporation 29 of the city of Staten Island shall be deemed to comply with the require- 30 ments of this title. For the purposes of this title, the term preceding 31 municipality shall mean the city government for the geographical area of 32 the city of Staten Island which existed immediately prior to the incor- 33 poration of the city of Staten Island. 34 § 11-101 Power of department of finance to adopt a seal. The depart- 35 ment of finance is authorized to adopt a seal. 36 § 11-102 Finance department; records; copies when in evidence. A 37 copy of any paper, record, book, document or map, filed in the depart- 38 ment of finance, or the minutes, records or proceedings, or any portion 39 thereof, of any board or commission of which the commissioner of 40 finance, is or may become a member, when certified by the commissioner 41 of finance, or a deputy commissioner of finance, to be a correct copy of 42 the original, shall be admissible in evidence in any trial, investi- 43 gation, hearing or proceeding in any court, or before any commissioner, 44 board or tribunal, with the same force and effect as the original. 45 Whenever a subpoena is served upon the commissioner of finance, or any 46 member of a board or commission of which the commissioner of finance is 47 a member, or upon any officer or employee of the department of finance, 48 or upon any officer or employee of such boards or commissions, requiring 49 the production upon any trial or hearing of an original paper, document, 50 book, map, record, minutes or proceedings, the commissioner of finance, 51 in his or her discretion, may furnish a copy certified as herein 52 provided, unless the subpoena be accompanied by an order of the court or 53 other tribunal before which trial or hearing is had requiring the 54 production of such original. 55 § 11-102.1 Authorization to require identifying numbers. a. The 56 commissioner of finance in the proper discharge of his or her duties in

S. 8578 156 1 the administration and collection of taxes, assessments, arrears or 2 other charges payable to the city may require any person to furnish such 3 identifying number as the commissioner may prescribe for securing proper 4 identification of such person including, but not limited to, a social 5 security account number or federal employer identification number. 6 b. Any person who fails to supply such identifying number within thir- 7 ty days after written demand therefor shall be liable for a civil penal- 8 ty of not more than one thousand dollars. Upon application in writing 9 and for good cause shown, the commissioner of finance may extend the 10 time for compliance with such written demand. 11 c. The civil penalty prescribed by this section shall be recovered by 12 the corporation counsel in an action or proceeding in any court of 13 competent jurisdiction. In addition, the corporation counsel may insti- 14 tute any other action or proceeding in any court of competent jurisdic- 15 tion that may be appropriate or necessary for the enforcement of the 16 provisions of this section. 17 § 11-103 Bond of commissioner of finance. The commissioner of 18 finance, within ten days after receiving notice of his or her appoint- 19 ment and before such commissioner enters upon his or her office, shall 20 give a bond to the city and to the people of the state of New York in 21 the sum of three hundred thousand dollars, with not less than four 22 sufficient sureties to be approved by the comptroller, conditioned that 23 he or she will faithfully discharge the duties of the commissioner's 24 office and all trusts imposed on him or her by law in virtue of the 25 commissioner's office, including all duties in connection with the tax 26 on mortgages as prescribed by article eleven of the tax law. Such bond 27 shall be deemed to extend to the faithful execution of the duties of the 28 office until a new appointment shall be made and confirmed, and the 29 person so appointed enters upon the performance of the commissioner's 30 duties. In case of any official misconduct or default on the part of 31 such commissioner of finance, or his or her subordinates, an action upon 32 such bond may be begun and prosecuted to judgment by the city, which, 33 after first paying therefrom the expenses of the litigation, shall cause 34 the proceeds of such judgment to be distributed as shall be lawful and 35 equitable among the persons and objects injured or defrauded by such 36 official misconduct or default of the commissioner of finance or any of 37 his or her subordinates. 38 § 11-104 Commissioner of finance to keep accounts. a. The commission- 39 er of finance shall keep books showing the receipts of moneys from all 40 sources, and designating the sources of same, and also showing the 41 amounts paid from time to time on account of the several appropriations, 42 the forms of which shall be prescribed by the comptroller. 43 b. The city collector or the deputy collector in receiving moneys 44 payable to the city, from whatever source derived, shall not issue a 45 receipt to the payor for a payment made by personal, business or corpo- 46 rate check unless specifically requested. 47 § 11-105 Agreements with financing agencies or card issuers; payment 48 of fines, civil penalties, taxes, fees, rates, rent, charges or other 49 amounts by credit card. 1. As used in this section, the following terms 50 shall have the following meanings: 51 a. "Card issuer" shall mean an issuer of a credit card, charge card or 52 other value transfer device. 53 b. "Credit card" means any credit card, credit plate, charge card, 54 charge plate, courtesy card, debit card or other identification card or 55 device issued by a person to another person which may be used to obtain 56 a cash advance or a loan or credit, or to purchase or lease property or

S. 8578 157 1 services on the credit of the person issuing the credit card or a person 2 who has agreed with the issuer to pay obligations arising from the use 3 of a credit card issued another person. 4 c. "Financing agency" means a person engaged, in whole or in part, in 5 the business of purchasing retail installment contracts, obligations or 6 credit agreements or indebtedness of buyers under credit agreements from 7 one or more retail sellers or entering into credit agreements with 8 retail buyers but shall not include a retail seller. The term includes 9 but is not limited to a bank, trust company, private banker, industrial 10 bank or investment company, if so engaged, but shall not include a 11 retail seller. 12 d. "Person" means an individual, partnership, corporation or any other 13 legal or commercial entity. 14 2. The city may enter into agreements with one or more financing agen- 15 cies or card issuers to provide for the acceptance by the city of credit 16 cards as an alternate means of payment of fines, civil penalties, taxes, 17 fees, rent, rates, charges or other amounts owed by a person to the 18 city. Any such agreement shall govern the terms and conditions upon 19 which a credit card proffered as a means of payment of a fine, civil 20 penalty, tax, fee, rent, rate, charge or other amount shall be accepted 21 or declined and the manner in and conditions upon which the financing 22 agency or card issuer shall pay to the city the amount of fines, civil 23 penalties, taxes, fees, rent, rates, charges or other amounts paid by 24 means of credit cards pursuant to such agreement. Any such agreement may 25 provide for the payment by the city to such financing agency or card 26 issuer of fees for the services rendered by such financing agency or 27 card issuer pursuant to such agreement, which fees may consist of a 28 discount deducted from or payable in respect of the amount of each such 29 fine, civil penalty, tax, fee, rent, rate, charge or other amount or 30 otherwise as the agreement may provide. 31 3. Notwithstanding any other provision of law to the contrary, any 32 agency or department of the city which, pursuant to an agreement entered 33 into under this section, accepts credit cards as a means of payment of 34 fines, civil penalties, taxes, fees, rent, rates, charges or other 35 amounts owed by a person to the city shall be authorized to charge and 36 collect from any person offering a credit card as a means of payment of 37 a fine a reasonable and uniform fee as a condition of accepting such 38 credit card in payment of a fine, civil penalty, tax, fee, rent, rate, 39 charge or other amount. Such fee shall not exceed the cost incurred by 40 the agency or department in connection with such credit card trans- 41 action, which cost shall include any fee payable by the city to the 42 financing agency. 43 § 11-106 Weekly reports by commissioner of finance to mayor and comp- 44 troller. The commissioner of finance shall report weekly in writing to 45 the mayor and to the comptroller all moneys received by the commission- 46 er, the amount of all warrants paid by him or her since the commission- 47 er's last report, and the amount remaining to the credit of the city. 48 § 11-107 Report to comptroller. The commissioner of finance, when 49 required by the comptroller, shall furnish to him or her such informa- 50 tion as the comptroller may demand in relation to the finances of the 51 city, within such reasonable time as the commissioner may direct. 52 § 11-108 Rules in signing warrants. No warrant shall be signed by 53 the comptroller or countersigned by the commissioner of finance, except 54 upon vouchers for the expenditures of the amount named therein, duly 55 prepared and audited according to the methods prescribed by the comp-

S. 8578 158 1 troller, and filed with the comptroller, except in the case of judg- 2 ments, in which case a transcript thereof shall be filed. 3 § 11-109 Commissioner of finance to exhibit bank book. The commis- 4 sioner of finance shall exhibit his or her bank book to the comptroller 5 on the first Tuesday of every month and more often when required. 6 § 11-110 When commissioner of finance to close accounts. The accounts 7 of the commissioner of finance shall be annually closed on the last day 8 of June. 9 § 11-111 Withdrawal of moneys by heads of agencies. Notwithstanding 10 any provision of the charter, any city treasury or sinking fund moneys 11 which have been duly withdrawn from any bank or trust company upon prop- 12 er warrant and check to the order of the head or heads of any agency or 13 agencies may be redeposited by such head or heads of such agency or 14 agencies in a properly designated deposit bank and thereafter such rede- 15 posited moneys may be withdrawn upon check signed by him or her or them 16 without additional warrant. 17 § 11-112 Authorization of subordinates to sign checks and warrants. 18 Notwithstanding any provision of the charter, the comptroller or commis- 19 sioner of finance may designate and authorize any deputies, assistant 20 deputies, or employees to sign, each in his or her own name and in place 21 of and for the comptroller or commissioner of finance, respectively, any 22 or all checks or warrants, including those issued against sinking fund 23 and trust fund bank accounts. A warrant or check so signed shall be of 24 the same force and effect as if signed by the comptroller or commission- 25 er of finance, respectively. The designation or designations of depu- 26 ties shall be made in writing in the manner set forth in section nine- 27 ty-four of the charter of the preceding municipality as it existed 28 January first, nineteen hundred ninety-four. The designation or desig- 29 nations of assistant deputies or employees shall be in writing, signed 30 in duplicate by the comptroller or the commissioner of finance, respec- 31 tively, and shall be duly filed and remain of record in the office of 32 the comptroller and the department of finance. The period for which 33 each such designation of deputies, assistant deputies and employees 34 shall continue in force shall be specified therein and may be terminated 35 by the comptroller or commissioner of finance, respectively, at any time 36 by filing in the same office or offices in which the designation has 37 been filed a written notice of such termination signed by the comp- 38 troller or commissioner of finance, respectively. 39 § 11-113 Acceptance of facsimile signatures by banks or trust compa- 40 nies. Notwithstanding any provision of the charter, checks drawn upon 41 any bank or trust company for payment of payrolls or disbursements for 42 relief, required to be signed by the head of an agency or his or her 43 authorized designee, may be signed by the facsimile signature or signa- 44 tures of the person or persons authorized to sign such checks, if the 45 head of such agency so authorizes by an instrument in writing signed by 46 the head of such agency and filed with the comptroller; and, in such 47 event, any bank or trust company shall, acting in good faith and without 48 notice of any defect or invalidity, be authorized to pay and be 49 protected in paying any checks bearing or purporting to bear the facsim- 50 ile signature or signatures of the person or persons duly authorized to 51 sign such checks, regardless of the person by whom or the means by which 52 the actual or purported facsimile signature or signatures thereon may 53 have been affixed thereto, if such facsimile signature or signatures 54 closely resemble the facsimile specimens from time to time filed with 55 such banks or trust companies by the head of the agency in question; 56 provided, however, that nothing herein contained shall release such bank

S. 8578 159 1 or trust company from any liability arising from any cause or fact other 2 than the fact that such facsimile signature is not a genuine facsimile 3 signature affixed with appropriate authority. 4 § 11-115 City collector; appointment; bond. The mayor shall appoint 5 the city collector. The city collector, before entering upon the duties 6 of his or her office, shall enter into a bond to the city of Staten 7 Island to be approved by the commissioner of finance and comptroller in 8 the penal sum of twenty-five thousand dollars, which bond shall be 9 conditioned for the faithful performance of the duties of the office by 10 the officer giving such bond. Such bond shall be a lien on all the real 11 estate held by the collector executing the same, or any surety thereto, 12 in the city at the time of the filing thereof, unless there be named and 13 described in or on any such bond, real estate in such city equal in 14 value to the amount of such bond and owned by a surety, in which case 15 the bond shall be a lien on such real estate so described and upon all 16 the real estate of such city collector, and no other, and shall continue 17 to be such lien until the condition, together with all costs and charges 18 which may accrue by the prosecution thereof, shall be fully satisfied, 19 or until such lien be released, not to exceed, however, the period of 20 ten years after the time when the officer who has given such bond shall 21 have ceased to hold his or her office, unless an action thereon has been 22 commenced and shall then be pending. 23 § 11-116 Deputies to give bond; duties. The city collector shall 24 take from each deputy a bond, in such penal sum and with such sureties 25 as may be approved by the city collector and by the comptroller and 26 commissioner of finance, which bond shall run to the city collector, the 27 city and to whom it may concern, and shall be conditioned for the faith- 28 ful performance of the duties of such deputy. Each bond taken in 29 pursuance of the provisions of this section shall be filed with the 30 comptroller. Each deputy collector shall have all the powers and be 31 subject to all the duties of the city collector in respect to the 32 collection and receipt of taxes, assessments, water rents and arrears. 33 § 11-117 Renewal of bond. If at any time during the continuance in 34 office of the city collector or deputy collectors the comptroller or 35 commissioner of finance shall deem any surety of them to be insuffi- 36 cient, he or she may require the city collector or deputy collectors to 37 enter into a new bond to be approved in like manner as prescribed in 38 section 11-115 of this chapter, within such time as the comptroller may 39 direct, not being less than ten days after requiring such new bond to be 40 given. In case of the neglect or refusal of any such officer to furnish 41 such bond within the time so directed, the comptroller or commissioner 42 of finance may declare his or her office vacant. 43 § 11-118 Bureau of city collections; duties. The duties of the bureau 44 of city collections shall also include the collection of water rents, 45 charges, fines and penalties in connection with the water supply, 46 including arrears, sewer rents, sewer surcharges, charges, fines and 47 penalties in connection with the sewer system as defined in sections 48 24-514 and 24-523 of the code of the preceding municipality, including 49 arrears, interest on bonds and mortgages and revenue arising from the 50 sale of property belonging to or managed by the city. 51 § 11-119 City collector; absence; suspension of. a. In case of 52 inability of the city collector to perform the duties of his or her 53 office by reason of sickness or absence from the city, the mayor shall 54 designate some suitable person to perform the duties of the city collec- 55 tor's office during such inability or absence, and shall, if the comp-

S. 8578 160 1 troller so requires, take from such person a bond, with sufficient sure- 2 ties, in the manner hereinafter prescribed. 3 b. If the city collector or any deputy collector shall on any day omit 4 or neglect to furnish to the commissioner of finance or to the comp- 5 troller, respectively, the statements and vouchers required in section 6 11-121 of this chapter, or to make the prescribed daily payments, it 7 shall be the duty of the commissioner of finance forthwith to suspend 8 him or her from office. In case of such suspension, the commissioner of 9 finance shall appoint a suitable person to perform the duties of the 10 officer so suspended, who shall continue to act as such officer until 11 the person suspended shall be restored or another person shall have been 12 appointed. On making such temporary appointment, the commissioner of 13 finance shall be required to take from the person so appointed a bond, 14 with two sufficient sureties, to be approved by the comptroller and 15 filed with the comptroller, in such penal sum as the comptroller may 16 deem just, conditioned for the faithful performance of the duties of the 17 office during the continuance of the person appointed therein; and all 18 the provisions of law prescribing the duties of the city collector and 19 deputy collectors shall apply to the person or persons so appointed. 20 § 11-120 Bond of city collector to be filed. The bond given by the 21 city collector shall be filed and remain in the office of the comp- 22 troller, and true copies thereof, certified by the comptroller, shall be 23 filed in the office of the clerk, and shall be public records. In case 24 a certificate of the adjustment of the accounts of the city collector be 25 made, a true copy thereof, certified by the comptroller, shall be filed 26 in each of the offices in which a copy of the bond of the city collector 27 shall have been filed. 28 § 11-121 City collector; daily statements and accounts. a. The city 29 collector or the deputy collector shall enter upon accounts, to be main- 30 tained in each such office for each parcel of property, the payment of 31 taxes, assessments, sewer rents or water rents thereon, the amount 32 therefor, and the date when paid. The city collector shall daily enter 33 into suitable books to be kept for the purpose of such accounts, such 34 payments and the respective parcels on account of which the same were 35 paid. 36 b. At close of office hours each day, the city collector shall render 37 to the commissioner of finance a statement of the sums so received, and 38 at the same time pay over to such commissioner of finance, the amount 39 received on such day. The city collector shall thereupon receive from 40 such commissioner of finance a voucher for the payment of such sums 41 which he or she shall exhibit to the comptroller not later than the next 42 succeeding business day. 43 c. At the close of office hours each day, the city collector shall 44 also furnish a statement to the comptroller who shall file the same in 45 his or her office. Such statement shall indicate in detail such sums so 46 received and the respective parcels on account of which the same were 47 paid. The comptroller shall, on each day, immediately after receiving 48 such statement, compare it with a voucher furnished to him or her by the 49 commissioner of finance indicating the sums which have been paid on such 50 day to the commissioner of finance and if the aggregate amounts thereof 51 shall correspond, shall credit the city collector in his or her books 52 with such amount. 53 § 11-122 Exemption from taxes granted to REMICs. An entity that is 54 treated for federal income tax purposes as a real estate mortgage 55 investment conduit, hereinafter referred to as a REMIC, as such term is 56 defined in section 860D of the internal revenue code, shall be exempt

S. 8578 161 1 from all taxation under chapters five and six of this title. A REMIC 2 shall not be treated as a corporation, partnership or trust for purposes 3 of chapter six of this title. The assets of a REMIC shall not be 4 included in the calculation of any tax liability under chapter six. This 5 provision does not exempt the holders of regular or residual interests, 6 as defined in section 860G of the internal revenue code, in a REMIC from 7 tax on or measured by such regular or residual interests, or on income 8 from such interests. 9 § 11-123 Interest compounded daily. 10 In computing the amount of any interest required to be paid under 11 section 11-224 (except subdivision j thereof), 11-224.1, 11-264, 11-306, 12 11-307, 11-312, 11-313, 17-151, 19-152, 24-317, 24-512, 24-605, 26-128, 13 26-517.1, 27-2144 or 27-4029.1 of the code, such interest shall be 14 compounded daily. 15 § 11-124 Conciliation conferences. a. The commissioner of finance may 16 establish a procedure for providing conciliation conferences for 17 purposes of settling contested determinations of taxes or charges or 18 denials of refunds or credits with respect to taxes or charges imposed 19 under chapter five, six, seven, eight, nine, eleven, twelve, thirteen, 20 fourteen, fifteen, twenty-one, twenty-two, twenty-four, twenty-five or 21 twenty-seven of this title, or for the purpose of settling disputes 22 arising from the notification of the refusal to grant, the suspension or 23 the revocation of a license issued pursuant to chapter thirteen of this 24 title. If such a procedure is established, a conciliation conference 25 shall be provided at the option of any taxpayer or any other person 26 subject to the provisions of any of such chapters. For purposes of this 27 subdivision, if the commissioner of finance fails to act with respect to 28 a refund application before the expiration of the time period after 29 which the taxpayer may file a petition for refund with the tax appeals 30 tribunal established by section one hundred sixty-eight of the charter 31 of the preceding municipality as it existed January first, nineteen 32 hundred ninety-four pursuant to subdivision (c) of section 11-529 or 33 subdivision three of section 11-680 of the code, such failure shall be 34 deemed to be the denial of a refund. 35 b. A request for a conciliation conference shall be made in the manner 36 set forth in rules promulgated by the commissioner of finance and, 37 notwithstanding any provision of law to the contrary, shall suspend the 38 running of the period of limitations for the filing of a petition with 39 such tax appeals tribunal under chapter five, six, seven, eight, nine, 40 eleven, twelve, thirteen, fourteen, fifteen, twenty-one, twenty-two, 41 twenty-four, twenty-five or twenty-seven of this title until such time 42 as a conciliation decision is rendered by the commissioner of finance, 43 or until the person who requested the conciliation conference makes a 44 written request to discontinue or withdraw from the conciliation 45 proceeding. 46 c. Nothing contained herein shall prevent any taxpayer or any other 47 person who has received a notice of determination, notice of deficiency 48 or notice of denial of a claim for refund from filing a petition with 49 such tax appeals tribunal if the time for filing such a petition has not 50 elapsed. 51 d. The commissioner of finance is authorized and empowered to make, 52 adopt and amend rules appropriate to the carrying out of this section 53 and the purposes thereof. 54 § 11-126 Definitions. When used in this title, the term "partnership" 55 shall mean an entity classified as a partnership for federal income tax 56 purposes, including a subchapter K limited liability company, and the

S. 8578 162 1 term "partner" or the term "member" when used in relation to a partner- 2 ship shall include a member of a subchapter K limited liability company, 3 unless the context requires otherwise. The term "subchapter K limited 4 liability company" shall mean a limited liability company classified as 5 a partnership for federal income tax purposes. The term "limited liabil- 6 ity company" means a domestic limited liability company or a foreign 7 limited liability company, as defined in section one hundred two of the 8 state limited liability company law, a limited liability investment 9 company formed pursuant to section five hundred seven of the banking 10 law, or a limited liability trust company formed pursuant to section one 11 hundred two-a of the banking law. Notwithstanding anything herein to 12 the contrary, this section shall not apply for purposes of chapter 13 seventeen or nineteen of this title. 14 § 11-128 Payment of real property taxes by electronic funds transfer. 15 a. Definition. "Electronic funds transfer" shall mean any transfer of 16 funds, other than a transaction originated by check, draft or similar 17 paper instrument, which is initiated through an electronic terminal, 18 telephonic instrument or computer or magnetic tape so as to order, 19 instruct or authorize a financial institution to debit or credit an 20 account. 21 b. Authority. Notwithstanding any provision of law to the contrary, 22 the department of finance may accept and, as authorized by this section, 23 require payment of real property taxes by electronic funds transfer, and 24 may authorize a designee to accept such payments. The department of 25 finance, or its designee, may take all actions necessary to complete and 26 administer such transactions, including but not limited to requesting 27 and collecting necessary information and the debiting of specified 28 accounts as provided for by this section. 29 c. Participation. Notwithstanding any provision of law to the contra- 30 ry, the commissioner may require the payment of real property taxes by 31 electronic funds transfer for properties with annual real property tax 32 liability equal to or greater than three hundred thousand dollars. The 33 owner of any such real property, or the person or entity authorized by 34 such owner to pay real property taxes on such real property, shall be 35 required to enroll in an electronic payment program to make such 36 payments, including any arrears in real property taxes on such real 37 property, by electronic funds transfer, either by payment initiated by 38 the taxpayer as described in paragraph one of subdivision d of this 39 section or by authorizing the department of finance to debit the rele- 40 vant account as described in paragraph two of subdivision d of this 41 section. 42 1. Notwithstanding any other provision of this section, where a 43 taxpayer pays real property taxes for more than one property by a single 44 payment, and the total annual real property tax liability for such prop- 45 erties is equal to or greater than three hundred thousand dollars, the 46 total annual real property tax liability for such properties shall be 47 used to determine whether the taxes for a property must be paid by elec- 48 tronic funds transfer. 49 2. (i) Where real property taxes are paid for more than one taxpayer 50 by a single bill or paid by a single entity, including but not limited 51 to a mortgage escrow agent as defined in subparagraph (ii) of this para- 52 graph, if the total amount paid is equal to or greater than three 53 hundred thousand dollars annually, such amount shall be used to deter- 54 mine whether the taxpayer or entity is required to participate in an 55 electronic funds transfer program.

S. 8578 163 1 (ii) For purposes of this paragraph, the term "mortgage escrow agent" 2 shall include every banking organization, federal savings bank, federal 3 savings and loan association, federal credit union, bank, trust company, 4 licensed mortgage banker, savings bank, savings and loan association, 5 credit union, insurance corporation organized under the laws of any 6 state other than New York, or any other person, entity or organization 7 which, in the regular course of its business, requires, maintains or 8 services escrow accounts in connection with mortgages on real property 9 located in the city. 10 d. Electronic payment program. The owner of real property, or other 11 person or entity authorized by such owner to pay real property taxes on 12 real property for which payment must be made by electronic funds trans- 13 fer under this section, may choose between participating in a taxpayer 14 initiated payment program or an automatic debit program, as set forth in 15 this subdivision and described in rules promulgated by the commissioner 16 of finance. 17 1. Taxpayer initiated program. In such a program, taxpayers initiate 18 payment by electric funds transfer, including payment by fedwire. 19 2. Automatic debit program. In such a program, taxpayers authorize the 20 department of finance, or the department's designee as determined by the 21 commissioner of finance, to debit the taxpayer's account for the amounts 22 due. 23 e. Notification of participation requirements. For taxpayers or enti- 24 ties subject to this section, the department of finance shall mail 25 notice of such requirement to the property owner or other party who has 26 been designated to receive real property tax bills on an owner's regis- 27 tration card filed by such owner. Such notice shall include the date by 28 which the owner or other party designated by such owner to pay real 29 property taxes on the property must enroll in the electronic payment 30 program. 31 f. Authorization. To administer the payment of real property taxes by 32 electronic funds transfer by automatic debit as described in paragraph 33 two of subdivision d of this section, the department of finance may 34 require that the party responsible for the payment of real property 35 taxes: 36 1. execute an electronic funds transfer agreement with the department 37 of finance or its designee, on a form approved by the department of 38 finance. Such form may be in a format designated by the commissioner, 39 including an electronic format. The agreement shall require that the 40 taxpayer authorize the department of finance or its designee to debit 41 such account on the last date by which the real property taxes may be 42 paid without the accrual of interest in accordance with applicable law; 43 and 44 2. furnish the department of finance or its designee with information 45 to enable the department of finance to complete the electronic funds 46 transfer transaction. Such information shall include, but not be limited 47 to, the name and address of the bank from which an electronic funds 48 transfer shall be authorized, the account number from which the payment 49 shall be authorized, the American Bankers Association (ABA) routing 50 number of the bank where the taxpayer maintains an account and the 51 borough, block and lot of the real property for which such payments are 52 authorized. 53 g. Timely payment. Notwithstanding any provision of law to the contra- 54 ry, where real property taxes are required to be made by electronic 55 funds transfer pursuant to subdivision c of this section, payment of

S. 8578 164 1 real property tax by electronic funds transfer shall be deemed timely 2 and not subject to interest charges if: 3 1. for taxpayers enrolled in a taxpayer initiated program pursuant to 4 paragraph one of subdivision d of this section, (i) the taxpayer proper- 5 ly initiates payment on the last date by which the real property taxes 6 may be paid without the accrual of interest in accordance with applica- 7 ble law; and (ii) on the last date by which the real property taxes may 8 be paid without the accrual of interest in accordance with applicable 9 law, such account contains sufficient funds to enable the successful 10 completion of the electronic funds transfer; or 11 2. for taxpayers enrolled in an automatic debit program pursuant to 12 paragraph two of subdivision d of this section, (i) the department of 13 finance or its designee has been authorized to debit the taxpayer's 14 account on the last date by which the real property taxes may be paid 15 without the accrual of interest in accordance with applicable law; (ii) 16 such account is properly identified; and (iii) on the date such payment 17 is due, such account contains sufficient funds to enable the successful 18 completion of the electronic funds transfer. 19 h. Charge on returned payments. Where the department of finance or its 20 designee attempts to debit a taxpayer's account pursuant to a valid 21 electronic funds transfer agreement and is unable to successfully 22 complete the electronic funds transfer due to insufficient funds or 23 other cause not attributable to the department of finance or its desig- 24 nee, in addition to any interest accruing from the late payment of taxes 25 in accordance with applicable law, the same fee that is imposed for a 26 dishonored check pursuant to section eighty-five of the general munici- 27 pal law shall be imposed on the affected real property, and such fee may 28 be collected in the manner provided in such section. 29 i. Hardship. If a taxpayer is unable to enroll in the electronic 30 payment program required by subdivision c of this section or subsequent 31 to enrollment becomes unable to make payments by electronic funds trans- 32 fer as required by this section, the taxpayer may seek a waiver by writ- 33 ten application to the department of finance that sets forth the reason 34 for such inability. Such waiver may be granted in the discretion of the 35 commissioner of finance, who may consider such criteria as: 36 1. the hardship, whether financial or practical, created by partic- 37 ipation in the electronic funds transfer program for the taxpayer seek- 38 ing the waiver; 39 2. the length of time for which the waiver is requested; and 40 3. any other factors that the commissioner may deem relevant. 41 The commissioner shall issue a determination, in writing, within ten 42 days of the department of finance's receipt of a waiver request pursuant 43 to this subdivision, but no waiver shall be granted with respect to the 44 payment of any installment of real property taxes that is due within 45 thirty days of the date of the request for a waiver. 46 j. Confidentiality. The department of finance shall assure the confi- 47 dentiality of information supplied by taxpayers in effecting electronic 48 funds transfers in accordance with applicable provisions of law. The 49 provisions of article six of the public officers law shall not apply to 50 any such information furnished by taxpayers subject to the requirements 51 of this section. 52 k. Failure to pay by electronic funds transfer. 1. With respect to any 53 real property as to which real property taxes are required to be paid by 54 electronic funds transfer under this section, but for which an install- 55 ment of real property taxes is not paid by electronic funds transfer and 56 is paid instead by any other method, including payment by check, (i)

S. 8578 165 1 with respect to the first installment that is paid by any other method, 2 including payment by check, the department of finance shall mail a warn- 3 ing notice to the taxpayer setting forth the requirement to make payment 4 by electronic funds transfer and the penalties for failure to do so; and 5 (ii) with respect to each and every subsequent installment that is paid 6 by any other method, including payment by check, the department of 7 finance shall impose a penalty charge in the amount of one percent of 8 the amount of the tax installment that was required under this section 9 to be paid by electronic funds transfer. 10 2. Any penalty charge imposed under this subdivision shall be a lien 11 against the real property for which the taxpayer failed to make a 12 payment in the manner required by this section, and shall accrue inter- 13 est at the same rate as is imposed on a delinquent tax on real property, 14 to be calculated to the date of payment from the date of entry. Such 15 lien shall be a tax lien within the meaning of sections 11-319 and 16 11-401 and may be sold, enforced or foreclosed in the manner provided in 17 chapters three and four of this title. 18 l. Rules. The commissioner may promulgate rules necessary to implement 19 this section. 20 CHAPTER 2 21 REAL PROPERTY ASSESSMENT, TAXATION AND CHARGES 22 SUBCHAPTER 1 23 ASSESSMENT ON REAL PROPERTY 24 § 11-201 Assessments on real property; general powers of finance 25 department. The commissioner of finance shall be charged generally with 26 the duty and responsibility of assessing all real property subject to 27 taxation within the city. 28 § 11-202 Maps and records; surveyor. The commissioner of finance 29 shall appoint a surveyor who shall make the necessary surveys and 30 corrections of the block or ward maps, and also make all new tax maps 31 which may be required. 32 § 11-203 Maps and records; tax maps. a. As used in the charter of 33 the city of Staten Island and in this code, the term "tax maps" shall 34 mean and include the block map of taxes and assessments to the extent 35 that the territory within the city of Staten Island is or shall be 36 embraced in such map, such ward or land maps as embrace the remainder of 37 such city, and also such maps as may be prepared under and pursuant to 38 subdivision d of this section. 39 b. Each separately assessed parcel shall be indicated on the tax maps 40 by a parcel number or by an identification number. A separate identifi- 41 cation number shall be entered upon the tax maps in such manner as 42 clearly to indicate each separately assessed parcel of real property not 43 indicated by parcel numbering. Real property indicated by a single 44 identification number shall be deemed to be a separately assessed 45 parcel. 46 In the case of a newly created parcel with any building thereon, no 47 tax lot number or identification number shall be assigned to such parcel 48 unless the commissioner of the department of buildings has certified 49 that the newly created parcel complies with all applicable zoning laws. 50 c. Parcel numbers shall designate each parcel by the use of three or 51 more numbers, of which one shall be a section or ward number, another a 52 block, district or plat number, and another a lot number. The depart- 53 ment of finance may from time to time change the form of the section and 54 blocks, and also the numbers thereof, on the tax maps filed in its 55 office whenever such change of form has been caused pursuant to section

S. 8578 166 1 one hundred ninety-nine of the charter of the preceding municipality as 2 it existed on the first of January in the year next succeeding the 3 effective date of this section and there shall thereafter be delineated 4 and entered upon such maps such new additional sections and blocks and 5 their numbers as necessity may require. Such administration may from 6 time to time change the form of the lots or parcels comprised within any 7 block, and also the numbers thereof, and cause to be shown on such maps 8 the separate lots or parcels of land contained in any new block added 9 thereto and also the lot numbers thereof, according to the general plan 10 employed in the making of such maps. 11 d. Each separately assessed parcel indicated by an identification 12 number shall be shown by a description, or by inscription of such number 13 on the block map of taxes and assessments, or by other map and 14 description. Such numbers may be altered in the same manner as provided 15 in subdivision c of this section for the alteration of parcel numbers. 16 e. New tax maps shall be certified by the department of finance and 17 filed in its main office. All changes and alterations made in the tax 18 maps shall be transmitted within thirty days after such change or alter- 19 ation to such office. 20 § 11-204 Tax maps; block references; alterations and corrections. The 21 word "block", as used in this section designates a plot or parcel of 22 land such as is commonly so designated in the city, wholly embraced 23 within the continuous lines of streets, or streets and waterfront taken 24 together where water forms one of the boundaries of a block, and such 25 other parcels of land or land under water as may be indicated by the 26 department of finance upon such tax maps by block numbers as constitut- 27 ing blocks. 28 § 11-205 Maps and records; public inspection; evidential value. a. The 29 books, maps, assessment-rolls, files and records of the department of 30 finance shall be kept in such of the offices of the department of 31 finance as may be most convenient to the taxpayers of the city and suit- 32 able to the proper discharge of the business of the department of 33 finance. They shall be public records and shall at all reasonable times 34 be open to public inspection. 35 b. Copies of all such records and transcripts thereof, certified by 36 the commissioner of finance or an assessor or by an officer or employee 37 of the department of finance designated by the commissioner of finance, 38 and under the seal of the department of finance, shall be admissible in 39 evidence in all courts and places in the same manner and for the same 40 purposes as books, papers or documents similarly authenticated by the 41 clerk of a county. 42 § 11-206 Power of the commissioner of finance to correct errors. The 43 commissioner of finance may correct any assessment or tax which is erro- 44 neous due to a clerical error or to an error of description contained in 45 the several books of annual record of assessed valuations, or in the 46 assessments-rolls. If the taxes computed on such erroneous assessment 47 have been paid, the commissioner of finance is authorized to refund or 48 credit the difference between the taxes computed on the erroneous and 49 corrected assessments. 50 § 11-207 Duties of assessors in assessing property. a. In performing 51 their assessment duties, the assessors shall personally examine each 52 parcel of taxable real estate during at least every third assessment 53 cycle, and shall personally examine each parcel of real estate that is 54 not taxable during at least every fifth assessment cycle, as measured 55 from the last preceding assessment cycle during which such parcel was 56 personally examined, provided, however, the assessors shall revalue,

S. 8578 167 1 reassess or update the assessment of each parcel of taxable or nontaxa- 2 ble real estate during each assessment cycle, irrespective of whether 3 such parcel was personally examined during each assessment cycle. 4 b. The persons having charge of the assessment office shall furnish to 5 the commissioner of finance, under oath, a detailed statement of all 6 taxable real estate in the city. Such statement shall contain the 7 street, the section or ward, the block and lot and map or identification 8 numbers of such real estate embraced within such city; the sum for 9 which, in their judgment, each separately assessed parcel of real estate 10 would sell under ordinary circumstances if it were wholly unimproved 11 and, separately stated, the sum for which the same parcel would sell 12 under ordinary circumstances with the improvements, if any, thereon, 13 such sums to be determined with regard to the limitations contained in 14 the state real property tax law. Such statement shall include such 15 other information as the commissioner of finance may, from time to time, 16 require. 17 § 11-208 Special right of entry; certificate of the commissioner of 18 finance. A right of entry upon real property and into buildings and 19 structures at all reasonable times to ascertain the character of the 20 property shall not be allowed to any person acting in behalf of the 21 department of finance, other than the officials mentioned in sections 22 one hundred fifty-six and one thousand five hundred twenty-one of the 23 charter of the preceding municipality as it existed on the first of 24 January in the year next succeeding the effective date of this section, 25 unless a certificate therefor, executed in writing and signed by the 26 commissioner of finance, is presented by such person to the owner, 27 lessee, or occupant of the premises or his or her agent before entry 28 thereon is made. 29 § 11-208.1 Income and expense statements. a. Where real property is 30 income-producing property, the owner shall be required to submit annual- 31 ly to the department not later than the first of September a statement 32 of all income derived from and all expenses attributable to the opera- 33 tion of such property as follows: 34 (1) Where the owner's books and records reflecting the operation of 35 the property are maintained on a calendar year basis, the statement 36 shall be for the calendar year preceding the date the statement shall be 37 filed. 38 (2) Where the owner's books and records reflecting the operation of 39 the property are maintained on a fiscal year basis for federal income 40 tax purposes, the statement shall be for the last fiscal year concluded 41 as of the first of August preceding the date the statement shall be 42 filed. 43 (3) Notwithstanding the provisions of paragraphs one and two of this 44 subdivision, where the owner of the property has not operated the prop- 45 erty and is without knowledge of the income and expenses of the opera- 46 tion of the property for a consecutive twelve month period concluded as 47 of the first of August preceding the date of the statement shall be 48 filed, then the statement shall be for the period of ownership. 49 (4) The commissioner may for good cause shown extend the time for 50 filing an income and expense statement by a period not to exceed thirty 51 days. 52 b. Such statements shall contain the following declaration: "I certify 53 that all information contained in this statement is true and correct to 54 the best of my knowledge and belief. I understand that the willful 55 making of any false statement of material fact herein will subject me to

S. 8578 168 1 the provisions of law relevant to the making and filing of false instru- 2 ments and will render this statement null and void." 3 c. The form on which such statement shall be submitted shall be 4 prepared by the commissioner and copies of such form shall be made 5 available at the offices of the department in the county in which the 6 property is located. The commissioner may, by rule, require such state- 7 ment to be submitted electronically in such form and such manner as the 8 commissioner may determine. For good cause, the commissioner may waive 9 any rule requiring electronic filing and may permit a statement to be 10 filed in such other manner as the commissioner may designate. 11 d. (1) In the event that an owner of income-producing property fails 12 to file an income and expense statement within the time prescribed in 13 subdivision a of this section (determined with regard to any extension 14 of time for filing), such owner shall be subject to a penalty in an 15 amount not to exceed three percent of the assessed value of such 16 income-producing property determined for the current fiscal year in 17 accordance with section fifteen hundred six of the charter of the 18 preceding municipality as it existed on the first of January in the year 19 next succeeding the effective date of this section provided, however, 20 that if such statement is not filed by the thirty-first of December, the 21 penalty shall be in an amount not to exceed four percent of such 22 assessed value. If, in the year immediately following the year in which 23 an owner fails to file by the thirty-first of December, the owner again 24 fails to file an income and expense statement within the time prescribed 25 in subdivision a of this section (determined with regard to any exten- 26 sion of time for filing), such owner shall be subject to a penalty in an 27 amount not to exceed five percent of the assessed value of such property 28 determined for the current fiscal year. Such owner shall also be subject 29 to a penalty of up to five percent of such assessed value in any year 30 immediately succeeding a year in which a penalty of up to five percent 31 could have been imposed, if in such succeeding year the owner fails to 32 file an income and expense statement within the time prescribed in 33 subdivision a of this section (determined with regard to any extension 34 of time for filing). The penalties prescribed in this paragraph shall be 35 determined by the commissioner after notice and an opportunity to be 36 heard. 37 (2) The tax commission shall deny a hearing on any objection to the 38 assessment of property for which an income and expense statement is 39 required and has not been timely filed. 40 (3) Where an income and expense statement required under the 41 provisions of this section has not been timely filed, the commissioner 42 may compel by subpoena the production of the books and records of the 43 owner relevant to the income and expenses of the property, and may also 44 make application to any court of competent jurisdiction for an order 45 compelling the owner to furnish the required income and expense state- 46 ment. 47 e. As used in this section, the term "income-producing property" means 48 property owned for the purpose of securing an income from the property 49 itself, but shall not include property with an assessed value of forty 50 thousand dollars or less, or residential property containing ten or 51 fewer dwelling units or property classified in class one or two as 52 defined in article eighteen of the real property tax law containing six 53 or fewer dwelling units and one retail store. 54 f. Except in accordance with proper judicial order or as otherwise 55 provided by law, it shall be unlawful for the commissioner, any officer 56 or employee of the department, the president or a commissioner or

S. 8578 169 1 employee of the tax commission, any person engaged or retained by the 2 department or the tax commission on an independent contract basis, or 3 any person, who, pursuant to this section, is permitted to inspect any 4 income and expense statement or to whom a copy, an abstract or a portion 5 of any such statement is furnished, to divulge or make known in any 6 manner except as provided in this subdivision, the amount of income 7 and/or expense or any particulars set forth or disclosed in any such 8 statement required under this section. The commissioner, the president 9 of the tax commission, or any commissioner or officer or employee of the 10 department or the tax commission charged with the custody of such state- 11 ments shall not be required to produce any income and expense statement 12 or evidence of anything contained in them in any action or proceeding in 13 any court, except on behalf of the department or the tax commission. 14 Nothing herein shall be construed to prohibit the delivery to an owner 15 or his or her duly authorized representative of a certified copy of any 16 statement filed by such owner pursuant to this section or to prohibit 17 the publication of statistics so classified as to prevent the identifi- 18 cation of particular statements and the items thereof, or making known 19 aggregate income and expense information disclosed with respect to prop- 20 erty classified as class four as defined in article eighteen of the real 21 property tax law without identifying information about individual leas- 22 es, or making known a range as determined by the commissioner within 23 which the income and expenses of a property classified as class two 24 falls, or the inspection by the legal representatives of the department 25 or of the tax commission of the statement of any owner who shall bring 26 an action to correct the assessment. Any violation of the provisions of 27 this subdivision shall be punished by a fine not exceeding one thousand 28 dollars or by imprisonment not exceeding one year, or both, at the 29 discretion of the court, and if the offender be an officer or employee 30 of the department or the tax commission, the offender shall be dismissed 31 from office. 32 g. The commissioner shall be authorized to promulgate rules and regu- 33 lations necessary to effectuate the purposes of this section. 34 h. Subdivision f of this section shall be deemed a state statute for 35 purposes of paragraph (a) of subdivision two of section eighty-seven of 36 the public officers law. 37 § 11-209 Taxable status of building in course of construction. a. A 38 building in the course of construction, commenced since the preceding 39 fifth day of January and not ready for occupancy on the fifth day of 40 January following, shall not be assessed unless it shall be ready for 41 occupancy or a part thereof shall be occupied prior to the fifteenth of 42 April. 43 b. (1) A commercial building in the course of construction, commenced 44 since the fifth day of January one year preceding the taxable status 45 date and not ready for occupancy or partially occupied on the taxable 46 status date, shall not be assessed unless it shall be ready for occupan- 47 cy or a part thereof shall be occupied prior to the fifteenth day of 48 April following the taxable status date. 49 (2) A commercial building in the course of construction, commenced 50 since the fifth day of January two years preceding the taxable status 51 date and not ready for occupancy or partially occupied on the taxable 52 status date, shall not be assessed unless it shall be ready for occupan- 53 cy or a part thereof shall be occupied prior to the fifteenth day of 54 April following the taxable status date. 55 (3) A commercial building in the course of construction, commenced 56 since the fifth day of January three years preceding the taxable status

S. 8578 170 1 date and not ready for occupancy or partially occupied on the taxable 2 status date, shall not be assessed unless it shall be ready for occupan- 3 cy or a part thereof shall be occupied prior to the fifteenth day of 4 April following the taxable status date. 5 c. For purposes of this section, a "commercial building" shall mean a 6 building that is intended to be used, and upon completion is used, 7 exclusively for buying, selling or otherwise providing goods or 8 services, or for other lawful business, commercial or manufacturing 9 activities, excluding hotel services, except that a commercial building 10 may contain a residential component other than a hotel, provided (i) 11 that such residential component is receiving or has applied for and is 12 eligible to receive a partial exemption from real property taxes pursu- 13 ant to section four hundred twenty-one-a of the real property tax law, 14 or (ii) that such residential component in its entirety, both land and 15 building, is receiving or has applied for and is eligible to receive a 16 full exemption from real property taxes, provided, however, a "commer- 17 cial building" shall not include any building that is constructed on 18 block 1049, lot 29 as shown on the tax map of the city of New York for 19 the borough of Manhattan as such map was in effect for the assessment 20 roll published in calendar year two thousand. 21 d. Subdivision b of this section shall not apply to a tax lot that 22 constitutes a part of a building unless the building viewed as a whole 23 is a commercial building as defined in subdivision c of this section. 24 e. Any building that receives the benefit conferred pursuant to subdi- 25 vision b of this section that is subsequently determined not to have 26 been a commercial building as defined in subdivision c of this section 27 for any year in which it received such benefit shall have its assessment 28 corrected for any such year. Taxes shall be imposed in the amount that 29 would have applied had the corrected taxable assessed value appeared on 30 the final assessment roll. 31 § 11-210 Books of annual record of assessed valuation of real estate 32 indicated by parcel numbers; form and contents. a. There shall be kept 33 in the office of the department of finance, books of the annual record 34 of the assessed valuation of real estate to be called "the annual record 35 of the assessed valuation of real estate indicated by parcel numbers in 36 the Staten Island", in which shall be entered in detail the assessed 37 valuation of each separately assessed parcel indicated by a parcel 38 number within the limits of Staten Island. 39 b. The assessed valuation of each such parcel shall be set down in 40 such books in two columns. In the first column shall be stated, oppo- 41 site each such parcel, the sum for which such parcel would sell under 42 ordinary circumstances if wholly unimproved; and in the second column, 43 the sum for which such parcel would sell under ordinary circumstances 44 with the improvements, if any thereon. 45 c. Such books shall be prepared in such manner that the assessed valu- 46 ations entered therein shall be under sections and block headings as may 47 be most convenient for use in connection with the tax maps described in 48 section 11-203 of this chapter. 49 § 11-211 Books of annual record of assessed valuation of real estate 50 indicated by identification numbers. a. The assessed valuation of all 51 taxable real property indicated by identification numbers shall be 52 entered in the office of the department of finance. 53 b. The assessors in the city shall furnish to the commissioner of 54 finance at the office of the department of finance, a detailed statement 55 under oath of the assessable real property indicated by an identifica- 56 tion number in such city.

S. 8578 171 1 c. There shall be kept in the office of the department of finance, 2 books of the annual record of the assessed valuation of real estate to 3 be known as "the annual record of the assessed valuation of real estate 4 indicated by identification numbers", in which shall be entered the 5 assessed valuations of the real property mentioned in this section. 6 § 11-212 Power of the commissioner of finance to equalize assessments 7 before opening books. a. Before opening the several books of annual 8 record of assessed valuation for public inspection, the commissioner of 9 finance shall fix the valuations of property for the purpose of taxation 10 throughout the city at such sums as will, in the commissioner's judg- 11 ment, establish a just and equal relation between the valuations of 12 property throughout the entire city. 13 b. To this end the assessors are required to transmit to the commis- 14 sioner of finance in each year a report of the assessed valuation of 15 real property at such time prior to the fifteenth of January as such 16 commissioner may prescribe. 17 § 11-213 Errors in annual records or assessment-rolls. The omission 18 from the several books of annual record of assessed valuations or from 19 the assessment-rolls in respect to the entry therein of the name of the 20 rightful owner or owners of real estate, whether individuals or corpo- 21 rations, shall not invalidate any tax or assessment. In such case, 22 however, no tax shall be collected except from the real estate so 23 assessed. 24 § 11-214 Procedure on apportionment of assessment. a. The commissioner 25 of finance may apportion any assessment in such manner as he or she 26 shall deem just and equitable, and forthwith cause such assessment to be 27 cancelled and new assessments, equal in the aggregate to the cancelled 28 assessment, to be made on the proper books and rolls. Within five days 29 thereafter the commissioner of finance shall cause written notice of the 30 new assessments to be mailed to the owners of record of the real estate 31 so assessed at their last known residence or business address, and an 32 affidavit of the mailing of such notice to be filed in the office of the 33 department of finance. 34 b. When such notice is mailed after the first of February such owners 35 may apply for correction of such assessments within twenty days after 36 the mailing of such notice with the same force and effect as if such 37 application were made on or before the first of March in such year. 38 § 11-215 Entry of corrections made by tax commission. Upon receiving 39 notice of a correction of an assessment made by the tax commission, the 40 commissioner of finance shall cause the amount of the assessment as 41 corrected to be entered upon the proper books of annual record and the 42 assessment-rolls for the year for which such correction is made. 43 § 11-216 Reduction in assessments; publication. a. There shall be 44 published annually in the City Record a list of all reductions in real 45 property assessments granted by the tax commission identifying the name 46 of the property owner, the address and the amount of reduction. 47 b. No reduction shall be granted for an income-producing property 48 unless there is submitted to the tax commission a statement of income 49 and expenses in the form prescribed by the tax commission and which 50 shall be, in the case of property valued at one million dollars or more 51 certified by a certified public accountant. The commissioner granting 52 such reduction in assessment shall state in a short memorandum the basis 53 upon which the reduction is granted. 54 c. In all cases where the reduction in assessment for the current year 55 is for fifty thousand dollars or more, the concurrence of the president 56 of the tax commission shall be required.

S. 8578 172 1 § 11-217 Assessment-rolls; form and contents. Assessment-rolls shall 2 be so arranged with respect to number of columns and shall contain such 3 entries as the commissioner of finance shall prescribe, sufficient to 4 identify the property assessed and to show its total assessed valuation. 5 Real estate shall be described therein by the numbers by which such 6 property is designated on the tax maps and in the several books of the 7 annual record of the assessed valuation of real estate, and such numbers 8 shall import into the assessment-rolls any necessary identifying 9 description shown by the tax maps. 10 § 11-218 Assessment-rolls; delivery to council or city clerk. a. The 11 council shall meet at noon, on the day of delivery of the rolls, other 12 than a Saturday, Sunday, or legal holiday, at the city hall or usual 13 place of meeting for the purpose of receiving the assessment-rolls and 14 performing such other duties in relation thereto as are prescribed by 15 law. 16 b. If the council fails to meet as herein prescribed, the rolls shall 17 be delivered to the city clerk with the same effect as if delivered to 18 the council. 19 § 11-219 Books of annual record; delivery for publication. Within two 20 weeks after the delivery of the assessment-rolls to the council, the 21 commissioner of finance shall furnish to the director of the City Record 22 a copy of the several books of the annual record of the assessed valu- 23 ation of real estate, omitting, however, the two columns headed respec- 24 tively "size of house" and "houses on lot." 25 § 11-220 Council; date of meeting to fix tax rate. The council shall 26 meet on a day other than a Saturday, Sunday or legal holiday, to fix the 27 annual tax rate. 28 § 11-221 Extension of tax on assessment-rolls or upon assessment-roll 29 cards. The respective sums to be paid as taxes on the valuation of real 30 property, may be set down in the assessment-rolls, or upon assessment- 31 roll cards. 32 § 11-222 Tax account of the commissioner of finance. Upon notification 33 from the public advocate of the amount of taxes mentioned in such 34 assessment-rolls and tax warrants, the comptroller shall cause the prop- 35 er sum to be charged to the commissioner of finance for collection. 36 § 11-223 Apportionment of taxes. a. If a sum of money in gross has 37 been or shall be taxed upon any lands or premises, any person or persons 38 claiming any dividend or undivided part thereof may pay such part of 39 such sum so taxed and of any interest and charges due or charged there- 40 on, as the commissioner of finance may deem to be just and equitable. 41 b. The commissioner of finance shall apportion the assessed valuation 42 of such lands or premises. 43 c. The remainder of the sum of money so taxed and the interest and 44 charges shall be a lien upon the residue of the land and premises only, 45 and the tax lien upon such residue may be sold to satisfy such tax, 46 interest or charges thereon, in the same manner as though the residue of 47 said tax had been imposed only upon such residue of such lands or prem- 48 ises. 49 § 11-224 Interest on unpaid taxes. a. If any tax on real estate which 50 shall have become due and payable prior to January first, nineteen 51 hundred thirty-four, is unpaid in whole or in part, the commissioner of 52 finance shall charge, receive and collect interest upon the amount of 53 such tax or such part thereof, to be calculated to the date of payment 54 at the rate of seven per centum per annum from the date when such tax or 55 such part thereof became due and payable to January first, nineteen 56 hundred thirty-four, at the rate of ten per centum per annum from Janu-

S. 8578 173 1 ary first, nineteen hundred thirty-four to May first, nineteen hundred 2 thirty-seven, or at the rate of seven per centum per annum for such 3 period if the comptroller and the commissioner of finance, in their 4 discretion, both determine that the payment of any tax arrears at such 5 reduced rate of interest may operate to save the property upon which 6 such taxes are in arrears from foreclosure or encourage its development 7 or is otherwise in the public interest, at the rate of seven per centum 8 per annum from May first, nineteen hundred thirty-seven to August first, 9 nineteen hundred sixty-nine, and from August first, nineteen hundred 10 sixty-nine to December thirty-first, nineteen hundred seventy-six, at 11 the rate of seven per centum per annum if the annual tax on a parcel is 12 two thousand dollars or less, and at the rate of one per centum per 13 month if the annual tax on a parcel is more than two thousand dollars 14 or, irrespective of the annual tax, if a parcel consists of vacant or 15 unimproved land, and from January first, nineteen hundred seventy-seven 16 at the rate of seven per centum per annum if the annual tax on a parcel 17 is two thousand dollars or less, and at the rate of fifteen per centum 18 per annum if the annual tax on a parcel is more than two thousand 19 dollars or, irrespective of the annual tax, if a parcel consists of 20 vacant or unimproved land. 21 b. If any tax on real estate which shall have become due and payable 22 after January first, nineteen hundred thirty-four and prior to April 23 first, nineteen hundred thirty-seven, is unpaid in whole or in part, the 24 commissioner of finance shall charge, receive and collect interest upon 25 the amount of such tax or such part thereof, to be calculated to the 26 date of payment at the rate of ten per centum per annum from the date on 27 which such tax or such part thereof became due and payable to May first, 28 nineteen hundred thirty-seven, or at the rate of seven per centum per 29 annum for such period if the comptroller and the commissioner of 30 finance, in their discretion, both determine that the payment of any tax 31 arrears at such reduced rate of interest may operate to save the proper- 32 ty upon which such taxes are in arrears from foreclosure or encourage 33 its development or is otherwise in the public interest, at the rate of 34 seven per centum per annum from May first, nineteen hundred thirty-seven 35 to August first, nineteen hundred sixty-nine, from August first, nine- 36 teen hundred sixty-nine to December thirty-first, nineteen hundred 37 seventy-six, at the rate of seven per centum per annum if the annual tax 38 on a parcel is two thousand dollars or less, and at the rate of one per 39 centum per month if the annual tax on a parcel is more than two thousand 40 dollars or, irrespective of the annual tax, if a parcel consists of 41 vacant or unimproved land, and from January first, nineteen hundred 42 seventy-seven, at the rate of seven per centum per annum if the annual 43 tax on a parcel is two thousand dollars or less, and at the rate of 44 fifteen per centum per annum if the annual tax on a parcel is more than 45 two thousand dollars or, irrespective of the annual tax, if a parcel 46 consists of vacant or unimproved land. 47 c. If any tax on real estate which shall have become due and payable 48 on or after April first, nineteen hundred thirty-seven and prior to 49 August first, nineteen hundred sixty-nine is unpaid in whole or in part, 50 the commissioner of finance shall charge, receive and collect interest 51 upon the amount of such tax or such part thereof, to be calculated to 52 the date of payment at the rate of seven per centum per annum from the 53 day on which such tax or such part thereof became due and payable to 54 August first, nineteen hundred sixty-nine, from August first, nineteen 55 hundred sixty-nine to December thirty-first, nineteen hundred seventy- 56 six, at the rate of seven per centum per annum if the annual tax on a

S. 8578 174 1 parcel is two thousand dollars or less, and at the rate of one per 2 centum per month if the annual tax on a parcel is more than two thousand 3 dollars or, irrespective of the annual tax, if a parcel consists of 4 vacant or unimproved land, and from January first, nineteen hundred 5 seventy-seven at the rate of seven per centum per annum if the annual 6 tax on a parcel is two thousand dollars or less, and at the rate of 7 fifteen per centum per annum if the annual tax on a parcel is more than 8 two thousand dollars or, irrespective of the annual tax, if a parcel 9 consists of vacant or unimproved land. 10 d. If any tax on real estate which shall have become due and payable 11 on or after August first, nineteen hundred sixty-nine and prior to 12 December thirty-first, nineteen hundred seventy-six, is unpaid in whole 13 or in part, the commissioner of finance shall charge, receive and 14 collect interest upon the amount of such tax or such part thereof, to be 15 calculated from the date on which such tax or such part thereof became 16 due and payable to December thirty-first, nineteen hundred seventy-six, 17 at the rate of seven per centum per annum if the annual tax on a parcel 18 is two thousand dollars or less, and at the rate of one per centum per 19 month if the annual tax on a parcel is more than two thousand dollars 20 or, irrespective of the annual tax, if a parcel consists of vacant or 21 unimproved land, and from January first, nineteen hundred seventy-seven 22 at the rate of seven per centum per annum if the annual tax on a parcel 23 is two thousand dollars or less, and at the rate of fifteen per centum 24 per annum if the annual tax on a parcel is more than two thousand 25 dollars or, irrespective of the annual tax, if a parcel consists of 26 vacant or unimproved land. 27 e. If any tax on real estate which shall become due and payable at any 28 time on or after January first, nineteen hundred seventy-seven, shall 29 remain unpaid in whole or in part on the fifteenth day following the 30 date on which the same shall become due and payable, the commissioner of 31 finance shall charge, receive and collect interest upon the amount of 32 such tax or such part thereof remaining unpaid on that date, to be 33 calculated from the day on which such tax or such part thereof became 34 due and payable to the date of payment at the rate of seven per centum 35 per annum if the annual tax on a parcel is two thousand dollars or less, 36 and at the rate of fifteen per centum per annum if the annual tax on a 37 parcel is more than two thousand dollars or, irrespective of the annual 38 tax, if a parcel consists of vacant or unimproved land. 39 f. If any tax on real estate which shall become due and payable at any 40 time on or after July first, nineteen hundred seventy-nine, shall remain 41 unpaid in whole or in part on the fifteenth day following the date on 42 which the same shall become due and payable, or if any tax on real 43 estate which became due and payable prior to July first, nineteen 44 hundred seventy-nine shall remain unpaid on that date, the commissioner 45 of finance shall charge, receive and collect interest upon the amount of 46 such tax or such part thereof remaining unpaid, to be calculated, in the 47 case of any tax which shall become due and payable on or after July 48 first, nineteen hundred seventy-nine, from the day on which such tax or 49 such part thereof became due and payable, and in the case of any tax 50 which became due and payable prior to July first, nineteen hundred 51 seventy-nine, from July first, nineteen hundred seventy-nine, to the 52 date of payment at the rate of seven per centum per annum if the annual 53 tax on a parcel is two thousand seven hundred fifty dollars or less, and 54 at the rate of fifteen per centum per annum if the annual tax on a 55 parcel is more than two thousand seven hundred fifty dollars or, irre- 56 spective of the annual tax, if a parcel consists of vacant or unimproved

S. 8578 175 1 land. Any interest accrued prior to July first, nineteen hundred seven- 2 ty-nine, pursuant to subdivisions a through e of this section shall be 3 unaffected by the provisions of this subdivision. 4 g. No later than the twenty-fifth day of May of each year, the banking 5 commission shall transmit a written recommendation to the council of a 6 proposed interest rate to be charged for nonpayment of taxes on real 7 estate in those cases where the annual tax on a parcel is more than two 8 thousand seven hundred fifty dollars or where, irrespective of the annu- 9 al tax, a parcel consists of vacant or unimproved land. In making such 10 recommendations the commission shall consider the prevailing interest 11 rates charged for commercial loans extended to prime borrowers by 12 commercial banks operating in the city and shall propose a rate of at 13 least six per centum per annum greater than such rates. The council may 14 by resolution adopt an interest rate to be applicable to the aforemen- 15 tioned parcels and may specify in such resolution the date on which such 16 interest rate is to take effect. 17 h. Notwithstanding anything to the contrary contained in the recommen- 18 dation transmitted by the banking commission to the council relative to 19 the proposed rate of interest to be charged during the fiscal year of 20 the city commencing July first, nineteen hundred seventy-nine in the 21 case of nonpayment of real estate taxes, or contained in the resolution 22 adopted by the council in accordance with such recommendation, the coun- 23 cil hereby sets the interest rate to be charged during the fiscal year 24 of the city commencing July first, nineteen hundred seventy-nine for 25 nonpayment of real estate taxes at eighteen per centum per annum where 26 the annual tax on a parcel is more than two thousand seven hundred fifty 27 dollars or where the parcel consists of vacant or unimproved land. 28 i. The interest mentioned in subdivisions a through h of this section 29 shall be paid over and accounted for from time to time by such commis- 30 sioner of finance as a part of the tax collected by him or her. 31 j. When an installment agreement has been entered into pursuant to any 32 of the provisions of chapter four of this title, during the period 33 beginning on the date this subdivision takes effect and ending April 34 thirtieth, nineteen hundred eighty-two, the commissioner of finance 35 shall, notwithstanding any higher rate of interest prescribed pursuant 36 to applicable law, and unless a lower rate of interest is applicable to 37 a parcel covered by such an agreement, charge, collect and receive 38 interest on the arrears due and payable under such agreement, to be 39 calculated at the rate of ten percent per annum from May first, nineteen 40 hundred eighty-two to the date of payment of each installment. Any 41 interest accrued or accruing prior to May first, nineteen hundred eight- 42 y-two shall not be affected by the provisions of this subdivision but 43 shall be charged, collected and received in the manner and at the rates 44 prescribed pursuant to applicable law. Such ten percent rate of inter- 45 est shall be applicable only if, as of May first, nineteen hundred 46 eighty-two, (i) there has been no default in such agreement, and (ii) 47 all current taxes, assessments or other legal charges are paid as they 48 become due or within the period of grace provided by law. Where an 49 installment agreement has been entered into prior to May fifth, nineteen 50 hundred eighty-two pursuant to the provisions of either paragraph three 51 of subdivision a of section 11-413 of chapter four of this title prior 52 to March fourteenth, nineteen hundred seventy-nine or of subdivision a 53 of section 11-405 or subdivision h of section 11-409 of chapter four of 54 this title and said agreement is current as to both installment payments 55 and current taxes, assessments and other legal charges, the commissioner 56 of finance, on application of the party who entered into such agreement,

S. 8578 176 1 may cancel said agreement and enter into a new agreement containing the 2 terms provided on May fifth, nineteen hundred eighty-two. If any such 3 prior agreement is not cancelled as herein provided, any installments 4 due and payable under such agreement on or after May first, nineteen 5 hundred eighty-two shall be subject to interest at the rate and under 6 the conditions set forth above. In the event of any subsequent default 7 or failure to make timely payment of any installment payment or current 8 tax, assessment or other legal charge, the ten percent rate of interest 9 specified in this subdivision shall thereupon cease to be applicable and 10 the commissioner of finance shall thereafter charge, collect and receive 11 interest in the manner and at the rates prescribed pursuant to applica- 12 ble law. 13 k. 1. Notwithstanding any other provision of this section to the 14 contrary, but subject to the exception contained in paragraph two of 15 this subdivision, in the case of an installment of tax on real property 16 described in paragraph b of subdivision four of section fifteen hundred 17 nineteen of the city charter of the preceding municipality as it existed 18 on the first of January in the year next succeeding the effective date 19 of this section, interest shall be charged, received and collected at 20 the rate established pursuant to this section if such installment shall 21 remain unpaid in whole or in part on the date on which it shall become 22 due and payable. 23 2. If the tax rate for any fiscal year of the city has not been set by 24 the fifteenth of June preceding the start of such fiscal year, interest 25 shall not be charged, received and collected with respect to the first 26 installment of tax which is due and payable on the first of July in such 27 fiscal year if such installment is paid on or before the extended 28 payment date. For this purpose, the term "extended payment date" means 29 the date which falls the same number of days after the first of July in 30 such fiscal year as the number of days the date such tax rate is set 31 falls after such fifteenth of June. 32 l. No later than the fifth day following the effective date of this 33 subdivision and no later than May twenty-fifth of each succeeding year, 34 the banking commission shall transmit a written recommendation to the 35 council of proposed interest rates to be charged for nonpayment of taxes 36 on real property in those cases in which the annual tax on a parcel, 37 other than a parcel which consists of vacant or unimproved land, is not 38 more than two thousand seven hundred fifty dollars. In making such 39 recommendations, the banking commission shall consider the prevailing 40 interest rates charged for commercial loans extended to prime borrowers 41 by commercial banks operating in the city. In the case of any such 42 parcel with respect to which the real property taxes are held in escrow 43 and paid to the commissioner of finance by a "mortgage escrow agent," as 44 that term is defined in section fifteen hundred nineteen of the city 45 charter of the preceding municipality as it existed on the first of 46 January in the year next succeeding the effective date of this section, 47 the proposed rate shall be at least six percent per annum greater than 48 such prevailing prime rate, and in the case of all other such parcels, 49 the proposed rate shall be at least equal to such prevailing prime rate. 50 The council may by resolution adopt interest rates to be applicable to 51 the aforementioned parcels and may specify in such resolution the dates 52 on which such interest rates are to take effect. In the event the coun- 53 cil does not adopt interest rates as provided in this subdivision, the 54 interest rates otherwise specified in this section shall be applicable. 55 § 11-224.1 Interest on unpaid real property tax.

S. 8578 177 1 (a) For real property with an assessed value of eighty thousand 2 dollars or less, if an installment of tax due and payable is not paid by 3 July fifteenth, October fifteenth, January fifteenth or April fifteenth, 4 interest shall be imposed on such unpaid amounts. 5 (b) For real property with an assessed value of over eighty thousand 6 dollars, if an installment of tax due and payable is not paid by July 7 first or January first, interest shall be imposed on such unpaid 8 amounts. 9 (c) If the council does not adopt interest rates by July first, two 10 thousand twenty-five, the rates shall be (i) for real property with an 11 assessed value of eighty thousand dollars or less, seven percent per 12 annum; and (ii) for real property with an assessed value of over eighty 13 thousand dollars, fifteen percent per annum. 14 (d) (i) Any tax or part of a tax that became due before July first, 15 two thousand five and remains unpaid after June thirtieth, two thousand 16 twenty-five, shall continue to accrue interest until paid at the rate 17 applicable under this section. 18 (ii) This section shall not apply to interest accrued before July 19 first, two thousand twenty-five. 20 (e) By May twenty-fifth of each year, the banking commission shall 21 send a written recommendation to the council of a proposed interest rate 22 to be charged for nonpayment of taxes on real property. The commission 23 shall consider the prevailing interest rates charged for commercial 24 loans extended to prime borrowers by commercial banks operating in the 25 city and: 26 (i) for real property with an assessed value of eighty thousand 27 dollars or less, shall propose a rate at least equal to such prevailing 28 prime rate; 29 (ii) for real property with an assessed value of over eighty thousand 30 dollars, shall propose a rate of at least six percent per annum greater 31 than such prevailing prime rate. 32 The council may by resolution adopt interest rates to be applicable to 33 the aforementioned properties and may specify in such resolution the 34 date that such rates will take effect. 35 (f) If the tax rate for any fiscal year of the city is not set by the 36 fifteenth of June preceding the start of such fiscal year, interest 37 shall not be charged for the first installment of tax which is due on 38 the first day of July in such fiscal year if such installment is paid on 39 or before the extended payment date. For this purpose, the term 40 "extended payment date" means the date which falls the same number of 41 days after the first day of July in such fiscal year as the number of 42 days the date such tax rate is set falls after such fifteenth day of 43 June. 44 (g) For purposes of this section, property held in the cooperative 45 form of ownership shall not be deemed to have an assessed value of over 46 eighty thousand dollars if the property's assessed value divided by the 47 number of residential dwelling units is eighty thousand dollars or less 48 per unit. 49 § 11-225 Power of tax commission to remit or reduce taxes. The tax 50 commission shall have power to remit or reduce a tax imposed upon real 51 property where lawful cause therefor is shown or where such tax is found 52 to be excessive or otherwise erroneous, but such remission or reduction 53 shall be made only with respect to an assessment for which an applica- 54 tion for correction has been made pursuant to section one hundred 55 sixty-three of the charter, and no such remission or reduction shall be 56 made when a claim to correct the assessment or recover the tax would be

S. 8578 178 1 barred by passage of time or other adequate defense, or when, at the 2 time that the determination is rendered, applications for correction or 3 other proceedings are pending to review the assessment of such property 4 for more than one subsequent fiscal year, provided, however, the tax 5 commission shall have no power to remit or reduce a tax pursuant to this 6 section more than five years after the last day on which an application 7 for correction could have been filed to appeal the unlawful or erroneous 8 assessment upon which such tax was based. If such tax shall have been 9 paid the commissioner of finance is authorized to refund or credit the 10 amount of any such remission or reduction granted pursuant to this 11 section. When the correction results from an application for correction 12 made by the board of managers of a condominium, a refund may be paid to 13 the board of managers for distribution to the individual unit owners 14 with the consent of such board and on such conditions as the commission- 15 er deems appropriate. 16 § 11-226 Special right of entry; certificate of president. A right of 17 entry upon real property and into buildings and structures at all 18 reasonable times to ascertain the character of the property shall not be 19 allowed to any person acting in behalf of the tax commission, other than 20 the officials mentioned in sections one hundred fifty-six and fifteen 21 hundred twenty-one of the charter of the preceding municipality as it 22 existed on the first of January in the year next succeeding the effec- 23 tive date of this section, unless a certificate therefor, executed in 24 writing and signed by the president of the tax commission, is presented 25 by such person to the owner, lessee or occupant of the premises or his 26 agent before entry thereon is made. 27 § 11-227 Duties of authorized employees in examining applicants. a. 28 Employees of the tax commission, when authorized to take testimony on 29 application, shall reduce such testimony to writing. 30 b. Within ten days after the evidence on any application is taken, 31 they shall transmit the application and testimony so taken, with their 32 recommendation, to the tax commission at its main office or such other 33 office as the commission may prescribe. 34 § 11-228 Testimony taken on application to constitute part of record. 35 All written testimony taken by the tax commission, by a commissioner, or 36 by an employee of the commission authorized to take testimony on appli- 37 cations, shall constitute part of the record of the proceedings upon any 38 assessment. 39 § 11-229 Solicitation of retainers prohibited. It shall be unlawful 40 for any person or his or her or its agents or employee, or any person 41 acting on his or her or its behalf, to solicit, or procure through 42 solicitation, either directly or indirectly, any retainer or agreement: 43 (a) Authorizing such person, or his or her or its agent, employee or 44 any person acting on his or her or its behalf, to make application to 45 the commissioner of finance or tax commission for the correction of a 46 tentative or final assessed valuation of real property on behalf of an 47 owner of such property or other person claiming to be aggrieved, or 48 (b) Authorizing such person, or his or her or its agent, employee or 49 any person acting on his or her or its behalf, to appear for such 50 purpose or represent such owner or aggrieved person before such commis- 51 sion or a commissioner or any other officer or employee authorized by 52 law to act upon such application, examine applicants, take testimony, 53 make or recommend the making of a correction of any such assessed valu- 54 ation, or take any other official action in relation to any such 55 correction. Any violation of this section shall be a misdemeanor.

S. 8578 179 1 § 11-230 Issuance of final determination; limitation of time. Except 2 as otherwise provided in section one hundred sixty-five of the charter 3 of the preceding municipality as it existed on the first of January in 4 the year next succeeding the effective date of this section, the final 5 determination of the tax commission upon any application for the 6 correction of an assessment and upon the evidence taken thereunder 7 shall, where the evidence is taken by the commission or by a commission- 8 er, be rendered within thirty days after the hearing of such application 9 is closed. Where the evidence is taken by an employee of the tax commis- 10 sion authorized to take testimony on applications, the final determi- 11 nation shall be rendered within thirty days after the application and 12 the testimony hereon shall have been filed with the commission at its 13 main office. 14 Immediately upon making a correction of an assessment, the tax commis- 15 sion shall notify the commissioner of finance thereof. 16 § 11-231 Proceeding to review tax assessment; contents of petition. a. 17 Any person or corporation claiming to be aggrieved by the assessed valu- 18 ation of real property may commence a proceeding to review or correct on 19 the merits a final determination of the tax commission by serving on the 20 president of the tax commission, or his or her duly authorized agent, a 21 copy of a verified petition as prescribed by law. No such petition shall 22 be accepted unless, prior to the service thereof, an index number has 23 been obtained from the county clerk. Within ten days after a proceeding 24 has been commenced as hereinbefore provided, the original verified peti- 25 tion with proof of service shall be filed in the office of the clerk of 26 the court in which the proceeding is to be heard. 27 b. Such review shall be allowed only on one or more of the following 28 grounds, which must be specified in such petition: 29 1. That the assessment is illegal, and stating the particulars of the 30 alleged illegality, or 31 2. That the assessment is erroneous by reason of over-valuation, or 32 3. That the assessment is erroneous by reason of inequality, in that 33 it has been made at a higher proportionate valuation than the assessment 34 of other real property on the assessment rolls of the city for the same 35 year, and for assessments made after December thirty-first, nineteen 36 hundred eighty-one, other real property within the same class as defined 37 in section eighteen hundred two of the real property tax law, specifying 38 the instances in which such inequality exists and the extent thereof, 39 and stating that the petitioner is or will be injured thereby, or 40 4. That the real property is misclassified, and stating the class in 41 which it is claimed the property should be classified. 42 c. The proceeding shall be maintained against the tax commission 43 either by naming the president and the commissioners of the tax commis- 44 sion individually, or by naming the tax commission of the city of Staten 45 Island generally. 46 d. Such proceeding to review and all proceedings thereunder shall be 47 brought at a special term of the supreme court in the judicial district 48 where the real property so assessed is situated. 49 e. The justice or referee before whom such proceeding shall be heard 50 may inspect the real property which is the subject of the proceeding. 51 § 11-232 Comptroller; rates of interest on taxes and assessments. The 52 comptroller shall not reduce the rate of interest upon any taxes or 53 assessments below the amount fixed by law. 54 § 11-233 Cancellation of unpaid taxes. When it shall appear to the 55 comptroller that the unpaid taxes or assessments, or both, together with 56 the interest and penalties thereon which may have been levied upon a

S. 8578 180 1 parcel of real estate subject to easements which were in existence prior 2 to the levying of such taxes or assessments, equal or exceed the sum for 3 which, under ordinary circumstances, such parcel of real estate would 4 sell subject to such easements, the comptroller, with the written 5 approval of the corporation counsel, may settle and adjust such unpaid 6 taxes or assessments, or both, with the interest and penalties thereon, 7 and when it shall appear to the comptroller that such parcel of real 8 estate would sell under ordinary circumstances subject to such easements 9 for only a nominal sum, then the comptroller with the written approval 10 of the corporation counsel may cancel such unpaid taxes and assessments 11 together with the interest and penalties thereon. 12 § 11-235 Board of estimate; power to cancel taxes, assessments and 13 water rents. The board of estimate, upon the written certificate of the 14 comptroller approving the same, with whom application for relief under 15 this section shall be filed, in its discretion and upon such terms as it 16 may deem proper, by unanimous vote, may cancel and annul all taxes, 17 assessments and water rents and sales to the city of any or all of the 18 same which now are or may hereafter become a lien against any real 19 estate owned by any corporation, entitled to exemption of such real 20 estate owned by it from local taxation under the provisions of the real 21 property tax law formerly contained in subdivision six of section four 22 of the tax law, provided that all taxes and water rents from which 23 relief is asked be apportioned as of the date such corporation took 24 title to such real estate, and that such taxes and water rents so appor- 25 tioned to the period before such date, and all assessments which became 26 a lien before such date, be paid. The commissioner of finance shall mark 27 the city's books and rolls of taxes, assessments and water rents in 28 accordance with the determination of the board of estimate in every case 29 in which action shall be taken under the provisions of this section. 30 § 11-236 Powers of board of estimate to cancel taxes, water rents and 31 assessments. The council by local law may authorize the board of esti- 32 mate, by a unanimous vote, upon the written consent of the comptroller, 33 to cancel and annul any taxes, water rents and assessments constituting 34 a lien against any real property owned by a corporation whose property 35 is exempt from taxation under the provisions of the real property tax 36 law, notwithstanding that such taxes, water rents or assessments shall 37 have become a lien against such real property while owned by a person or 38 corporation not exempt under such section. The commissioner of finance 39 shall mark the city's books and rolls of taxes and assessments in 40 accordance with the determination of the board of estimate under such 41 local law. 42 § 11-237 Cancellation of assessments, water and sewer rents on real 43 property acquired by tax enforcement foreclosure proceedings. Upon the 44 cancellation of unpaid assessments, water and sewer rents by the city 45 collector pursuant to section 11-353 of this title, the comptroller 46 shall charge the unpaid amounts for assessments for local improvements, 47 so cancelled, to the surplus in the appropriate assessment fund; the 48 unpaid amounts for water charges, meter setting and repair, meter glass- 49 es and sewer rents, so cancelled, shall be deducted from the accounts 50 receivable of the appropriate fund. 51 § 11-238 Real property tax surcharge on absentee landlords. a. Impo- 52 sition of surcharge. A real property tax surcharge is hereby imposed on 53 class one property, as defined in section eighteen hundred two of the 54 real property tax law, excluding vacant land, that provides rental 55 income and is not the primary residence of the owner or owners of such 56 class one property, or the primary residence of the parent or child of

S. 8578 181 1 such owner or owners, in an amount equal to zero percent of the net real 2 property taxes for fiscal years beginning on or after the first of July 3 in the second year next succeeding the effective date of this section. 4 As used in this section, "net real property tax" means the real property 5 tax assessed on class one property after deduction for any exemption or 6 abatement received pursuant to the real property tax law or this title. 7 b. Rental income, primary residence and/or relationship to owner or 8 owners. The property shall be deemed to be the primary residence of the 9 owner or owners thereof, if such property would be eligible to receive 10 the real property tax exemption pursuant to section four hundred twen- 11 ty-five of the real property tax law, regardless of whether such owner 12 or owners has filed an application for, or the property is currently 13 receiving, such exemption. Proof of primary residence and the resident's 14 or residents' relationship to the owner or owners and the absence of 15 rental income shall be in the form of a certification as required by the 16 rules of the commissioner. 17 c. Rules. The department of finance shall have, in addition to any 18 other functions, powers and duties which have been or may be conferred 19 on it by law, the power to make and promulgate rules to carry out the 20 purposes of this section, including, but not limited to, rules related 21 to the timing, form and manner of any certification required to be 22 submitted under this section. 23 d. Penalties. 1. Notwithstanding any provision of any general, special 24 or local law to the contrary, an owner or owners shall be personally 25 liable for any taxes owed pursuant to this section whenever such owner 26 or owners fail to comply with this section or the rules promulgated 27 hereunder, or makes a false or misleading statement or omission and the 28 commissioner determines that such act was due to the owner or owners' 29 willful neglect, or that under such circumstances such act constituted a 30 fraud on the department. The remedy provided herein for an action in 31 person shall be in addition to any other remedy or procedure for the 32 enforcement of collection of delinquent taxes provided by general, 33 special or local law. 34 2. If the commissioner should determine, within three years from the 35 filing of an application or certification pursuant to this section, that 36 there was a material misstatement on such application or certification, 37 he or she shall impose a penalty tax against the property of five 38 hundred dollars, in accordance with the rules promulgated hereunder. 39 e. Cessation of use. In the event that a property granted an exemption 40 from taxation pursuant to this section ceases to be used as the primary 41 residence of such owner or owners or his, her or their parent or child, 42 or produces rental income, such owner or owners shall so notify the 43 commissioner. 44 SUBCHAPTER 2 45 EXEMPTIONS FROM REAL PROPERTY TAXATION 46 PART 1 47 EXEMPTIONS FOR CERTAIN RESIDENTIAL PROPERTY 48 § 11-241 Discrimination in tax exempt projects. No exemption from 49 taxation, for any project, other than a project hitherto agreed upon or 50 contracted for, shall be granted to a housing company, insurance compa- 51 ny, redevelopment company or redevelopment corporation, which shall 52 directly or indirectly, refuse, withhold from, or deny to any person any 53 of the dwelling or business accommodations in such project or property, 54 or the privileges and services incident to occupancy thereof, on account 55 of the race, color or creed of any such person.

S. 8578 182 1 Any exemption from taxation hereafter granted shall terminate sixty 2 days after a finding by the supreme court of the state of New York that 3 such discrimination is being or has been practiced in such project or 4 property; if within sixty days such discrimination shall have been 5 ended, then the exemption shall not terminate. 6 § 11-242 Exemption and tax abatement in regard to improvements of 7 substandard dwellings. a. As used in this section, the following terms 8 shall have the following meanings: 1. "Alteration" and "improvement": a 9 physical change in an existing dwelling other than painting, ordinary 10 repairs, normal replacements or maintenance items. 11 2. "Existing dwelling": a class A multiple dwelling in existence prior 12 to the commencement of alterations for which tax exemption and abatement 13 is claimed under the terms of this section and for which a valuation 14 appears on the annual record of assessed valuation of the city for the 15 fiscal year nineteen hundred fifty-five--nineteen hundred fifty-six. 16 3. "Start" on alteration or improvement: begin any physical operation 17 undertaken for the purpose of making alterations or improvements to an 18 existing dwelling. 19 4. "Complete" an alteration or improvement: conclude or terminate any 20 physical operation such as is referred to in subparagraph three of this 21 paragraph, to an extent or degree which renders such building capable of 22 use for the purpose for which the improvements or alterations were 23 intended. 24 5. "Multiple dwelling": multiple dwellings as that term is defined in 25 section four of the multiple dwelling law. 26 b. Any increase in assessed valuation resulting from alterations and 27 improvements to existing dwellings to eliminate presently existing 28 unhealthy or dangerous conditions in any existing dwelling or to replace 29 inadequate and obsolete sanitary facilities in any such dwelling, any of 30 which represent fire or health hazards, or to provide central or other 31 appropriate and approved heating, except insofar as the gross cubic 32 content of the building is increased thereby, shall be exempt from taxa- 33 tion for local purposes for a period of twelve years after the taxable 34 status date immediately following the completion of the alterations and 35 improvements, to the extent that such increase in assessed valuation 36 result from the reasonable cost of such alterations and improvements, 37 providing that construction is started after March first, nineteen 38 hundred fifty-five and completed before December thirty-first, nineteen 39 hundred fifty-nine. The assessed valuation allocated to such dwelling 40 after such alterations and improvements during such period of twelve 41 years, exclusive of the increase in valuation which is exempted, shall 42 not exceed the valuation of the previously existing dwelling appearing 43 on the assessment rolls after the taxable status date immediately 44 preceding the commencement of such alterations and improvements. The 45 assessed valuation of the land occupied by such dwelling and any 46 increase in valuation resulting from alterations and improvements other 47 than those made pursuant to this section, shall not be affected by the 48 provisions of this section. 49 c. The taxes upon any such property, including the land, shall be 50 abated and reduced by an amount equal to eight and one-third per centum 51 of the reasonable cost of such alterations and improvements each year 52 for a period of nine years commencing with the first tax bill for the 53 first tax year in which the exemption herein provided is effective, but 54 such abatement of taxes in any consecutive twelve-month period shall in 55 no event exceed the amount of taxes payable in such period.

S. 8578 183 1 d. The department of buildings shall determine and certify the reason- 2 able cost of any such alterations and improvements and for that purpose 3 may adopt rules and regulations, administer oaths to and take testimony 4 of any person, including but not limited to the owner of such property, 5 may issue subpoenas requiring the attendance of such persons and the 6 production of such books, papers or other documents as the department 7 shall deem necessary, may make preliminary estimates of the maximum 8 reasonable cost of such alterations and improvements, may establish 9 maximum allowable costs for specified units, fixtures or work in such 10 alterations or improvements, and may require the submission of plans and 11 specifications of such alteration and improvements before the start 12 thereof. Application forms for the benefits of this section shall be 13 filed with the tax commission between February first and March fifteenth 14 and the tax commission shall certify to the city collector the amount of 15 taxes to be abated and reduced, pursuant to the certification of the 16 commissioner of buildings as herein provided. No such application shall 17 be accepted unless accompanied by copies of certificates of the city 18 planning commission and the commissioner of buildings, as provided in 19 this subdivision and in subdivision e of this section. 20 e. To the end that alterations and improvements in such property shall 21 interfere as little as practicable with urgently needed public improve- 22 ments, and the clearance and rebuilding of substandard and insanitary 23 areas, and shall be confined to multiple dwellings which are struc- 24 turally sound, comply with applicable provisions of law, and are 25 provided with adequate central or other appropriate and approved heating 26 exemption or abatement from taxation hereunder shall be restricted to 27 dwellings which: (1) the city planning commission certify will not undu- 28 ly interfere with projected public improvements or the clearance and 29 rebuilding of substandard and insanitary areas which certification shall 30 be evidenced by a certificate describing the property involved and shall 31 be issued upon application to such city planning commission in such 32 manner and in such form as may be prescribed by such city planning 33 commission, and (2) which the department of buildings shall certify to 34 be structurally sound, comply with applicable provisions of law and 35 provide central or other appropriate and approved heating, which certif- 36 ication shall be evidenced by a certificate describing the property 37 involved and shall be issued upon application to the department of 38 buildings in such manner and in such form as may be prescribed by such 39 department. Where the improvements and alterations include or benefit 40 that part of a building which is occupied by stores or used for commer- 41 cial purposes, the cost shall be apportioned so that the benefits of 42 this section shall not be provided for the cost of the improvements or 43 alterations made for store or commercial purposes. 44 f. Notwithstanding the provisions of the multiple dwelling law, or any 45 local law, ordinance, provisions of this code, rule or regulation, any 46 dwelling to which alterations and improvements are made pursuant to this 47 section and which did not require a certificate of occupancy on April 48 second, nineteen hundred forty-five, may be occupied lawfully after such 49 date upon the completion of such alterations and improvements without 50 such a certificate being obtained, provided, however, that such alter- 51 ations and improvements shall have been made in conformity with law and 52 the applicable provisions for fire protection required by articles six 53 and seven of the multiple dwelling law. 54 g. No owner of a dwelling to which the benefits of this section shall 55 be applied nor any agent, employee, manager or officer of such owner 56 shall directly or indirectly deny to any person because of race, color,

S. 8578 184 1 creed, or religion any of the dwelling accommodations in such property 2 or any of the privileges or services incident to occupancy therein. 3 h. Each agency to which functions are assigned by this section may 4 adopt rules and regulations for the effectuation of the purposes of this 5 section, and a copy, for each member of the council, of such rules and 6 regulations shall be filed with the clerk of the council prior to 7 promulgation. 8 i. Any person who shall knowingly and wilfully make any false state- 9 ment as to any material matter in any application for the benefits of 10 this section shall be guilty of an offense punishable by a fine of not 11 more than five hundred dollars or imprisonment for not more than ninety 12 days, or both. 13 j. The benefits of this section shall not apply to any multiple dwell- 14 ing which is not subject to the provisions of the emergency housing rent 15 control law or its successor statute for the city of Staten Island, 16 provided that this subdivision shall not operate to rescind any benefits 17 granted by the tax commission under this section prior to July first, 18 nineteen hundred fifty-eight; and further provided that where the bene- 19 fits herein provided were or are granted by the tax commission on or 20 after July first, nineteen hundred fifty-eight to any multiple dwelling 21 which is decontrolled subsequent to the granting of such benefits, the 22 tax commission shall withdraw such benefits, effective upon the 23 commencement of the first tax year following the tax year in which such 24 multiple dwelling is decontrolled. 25 § 11-243 Reextension of exemption and tax abatement in regard to 26 improvements of substandard dwellings. a. As used in this section, the 27 following terms shall have the following meanings: 28 1. "Alteration" and "improvement": a physical change in an existing 29 dwelling other than painting, ordinary repairs, normal replacement of 30 maintenance items, provided, however, that ordinary repairs and normal 31 replacement of maintenance items, as defined by rules adopted by the 32 department of housing preservation and development pursuant to subdivi- 33 sion m of this section, shall be eligible for tax exemption and tax 34 abatement under this section provided that repairs and maintenance 35 items: 36 (1) were started and completed within a twelve-month period, 37 (2) were made to any common area of the dwelling premises concurrently 38 with a major capital improvement thereto, as defined by rules adopted by 39 the department of housing preservation and development pursuant to 40 subdivision m of this section, 41 (3) require the issuance of a permit for at least one item thereof by 42 any city agency, and 43 (4) the amount of money expended thereon shall not exceed two times 44 the amount expended on the major capital improvement performed concur- 45 rently therewith. 46 "Alteration" and "improvement" shall also mean "an abatement" of lead- 47 based paint hazards, as defined in part 745 of title forty of the code 48 of federal regulations or any successor regulations in any existing 49 dwelling including any common areas, and shall include an "inspection" 50 and "risk assessment" for lead-based paint hazards, as defined in such 51 part, in a dwelling unit whether such unit is vacant or occupied but 52 shall not include any work performed to comply with a notice of 53 violation issued for a violation of article fourteen of subchapter two 54 of chapter two of title 27 of the administrative code of the city of New 55 York. For purposes of this paragraph, the term, "targeted area" shall 56 mean the geographical area of New York city that is determined by the

S. 8578 185 1 department of health and mental hygiene to have high rates of children 2 with environmental intervention blood lead levels. The department of 3 housing preservation and development shall establish two schedules of 4 certified reasonable costs for items that are included in an abatement 5 of lead-based paint hazards, one covering such abatement that is 6 performed in an eligible dwelling unit or common area located in the 7 targeted area, and one covering such abatement that is performed in an 8 eligible dwelling unit or common area that is not located in the target- 9 ed area. The first such schedules shall be promulgated by the department 10 of housing preservation and development within 180 days of the effective 11 date of this section and shall be used for any such abatements that are 12 commenced on or after August 2, 2004. Such schedules shall be reviewed 13 by such department biennially following their effective dates and 14 amended as necessary. Notwithstanding any other provision of law or 15 rule, an owner who performs an abatement of lead-based paint hazards 16 pursuant to this paragraph shall not be required to comply with subdivi- 17 sion y of this section which provides for filing of a notice of intent 18 form prior to the commencement of work, and no additional fee or penalty 19 shall be due and owing the department at the time of issuance of a 20 certificate of eligibility and reasonable cost for failure to file such 21 notice of intent. 22 2. "Existing dwelling": except as hereinafter provided in subdivision 23 d of this section, a class A multiple dwelling or a building consisting 24 of one or two dwelling units over space used for commercial occupancy in 25 existence prior to the commencement of alterations for which tax 26 exemption and abatement is claimed under the terms of this section and 27 for which a valuation appears on the annual record of assessed valuation 28 of the city for the fiscal year immediately preceding the commencement 29 of such alterations and improvements. 30 3. "Start" an alteration or improvement: begin any physical operation 31 undertaken for the purpose of making alterations or improvements to an 32 existing dwelling. 33 4. "Complete" an alteration or improvement: conclude or terminate any 34 physical operation such as is referred to in paragraph three of this 35 subdivision, to an extent or degree which renders such building capable 36 of use for the purpose for which the improvements or alterations were 37 intended. 38 5. "Multiple dwelling": multiple dwellings as that term is defined in 39 section four of the multiple dwelling law. 40 6. "Moderate rehabilitation": shall mean a scope of work which 41 (a) includes a building-wide replacement of a major component of one 42 of the following systems: 43 (1) Elevator 44 (2) Heating 45 (3) Plumbing 46 (4) Wiring 47 (5) Window; and 48 (b) has a certified reasonable cost of not less than twenty-five 49 hundred dollars, exclusive of any certified reasonable cost for ordinary 50 repairs, for each dwelling unit in existence at the commencement of the 51 rehabilitation; except that the department of housing preservation and 52 development may establish a minimum certified reasonable cost to be 53 greater than twenty-five hundred dollars per dwelling unit pursuant to 54 subdivision m of this section. 55 7. "Substantially occupied": shall mean an occupancy of not less than 56 sixty percent of all dwelling units immediately prior and during reha-

S. 8578 186 1 bilitation, except that the department of housing preservation and 2 development may establish higher percentages of occupancy pursuant to 3 subdivision m of this section. 4 8. "Private dwelling" shall mean any building or structure designed 5 and occupied for residential purposes by not more than two families. 6 Private dwellings shall also be deemed to include a series of one-family 7 or two-family dwelling units each of which faces or is accessible to a 8 legal street or public thoroughfare, if each such dwelling unit is 9 equipped as a separate dwelling unit with all essential services, and if 10 each such unit is arranged so that it may be approved as a legal one-fa- 11 mily or two-family dwelling. 12 b. Subject to the limitations provided in subdivision d of this 13 section and the restrictions in this section on conversion of buildings 14 used in whole or in part for single room occupancy, any increase in the 15 assessed valuation of real property shall be exempt from taxation for 16 local purposes to the extent such increase results from the reasonable 17 cost of: (1) the conversion of a class B multiple dwelling to a class A 18 multiple dwelling except insofar as the gross cubic content of such 19 building is increased thereby; or (2) the conversion of any nonresiden- 20 tial building or structure situated in the county of Richmond to a class 21 A multiple dwelling except insofar as the gross cubic content of such 22 building or structure is increased thereby; or (3) alterations or 23 improvements to the exterior of an otherwise eligible building or struc- 24 ture visible from a public street pursuant to a permit issued by the 25 landmarks commission with respect to a designated historic or landmark 26 site or structure; or (4) alterations or improvements constituting a 27 moderate rehabilitation of a substantially occupied class A multiple 28 dwelling except insofar as the gross cubic content of such building or 29 structure is increased thereby; or (5) alterations or improvements to an 30 otherwise eligible building or structure commenced after January first, 31 nineteen hundred eighty designed to conserve the use of fuel, electric- 32 ity or other energy sources or to reduce demand for electricity, includ- 33 ing the installation of meters for purposes of measuring the amount of 34 electricity consumed for each dwelling unit, and conversions of direct 35 metering to a system that includes a master meter and submeters in any 36 cooperative, condominium, or housing development fund company organized 37 under article eleven of the private housing finance law; or (6) alter- 38 ations or improvements to existing dwellings to eliminate existing 39 unhealthy or dangerous conditions in any such existing dwelling or 40 replace inadequate and obsolete sanitary facilities in any such existing 41 dwelling, any of which represents fire or health hazards, including as 42 improvements asbestos abatement to the extent such asbestos abatement is 43 required by federal, state or local law, except insofar as the gross 44 cubic content of such existing dwelling is increased thereby; or (7) 45 conversion of residential units qualified for the protection of article 46 seven-C of the multiple dwelling law in buildings or portions thereof 47 registered with the New York city loft board as interim multiple dwell- 48 ings pursuant to such article to units which are in compliance with the 49 standards of safety and fire protection set forth in article seven-B of 50 the multiple dwelling law or to units which have a certificate of occu- 51 pancy as class A multiple dwellings; or (8) alterations or improvements 52 commenced on or after September first, nineteen hundred eighty-seven 53 constituting a substantial rehabilitation of a class A multiple dwell- 54 ing, or a conversion of a building or structure into a class A multiple 55 dwelling, as part of a program to provide housing for low and moderate 56 income households as defined by the department of housing preservation

S. 8578 187 1 and development pursuant to the rules and regulations promulgated pursu- 2 ant to subdivision m of this section, provided that such alterations or 3 improvements or conversions shall be aided by a grant, loan or subsidy 4 from any federal, state or local agency or instrumentality, including, 5 in the discretion of the department of housing preservation and develop- 6 ment, a subsidy in the form of a below market sale from the city of New 7 York; or (9) alterations or improvements to any private dwelling or 8 conversion of any private dwelling to a multiple dwelling or conversion 9 of any multiple dwelling to a private dwelling, provided that such 10 alterations, improvements or conversions are part of a project that has 11 applied for or is receiving benefits pursuant to this section and shall 12 be aided by a grant, loan or subsidy from any federal, state or local 13 agency or instrumentality. Such conversions, alterations or improvements 14 shall be completed within thirty-six months after the date on which same 15 shall be started except that such thirty-six month limitation shall not 16 apply to conversions of residential units which are registered with the 17 loft board in accordance with article seven-C of the multiple dwelling 18 law pursuant to paragraph eight of this subdivision. Provided, however, 19 a sixty-month period for completion shall be available for alterations 20 or improvements undertaken by a housing development fund company organ- 21 ized pursuant to article eleven of the private housing finance law, 22 which are carried out with the substantial assistance of grants, loans 23 or subsidies from any federal, state or local governmental agency or 24 instrumentality or which are carried out in a property transferred from 25 the city of New York or the city of Staten Island if alterations and 26 improvements are completed within seven years after the date of trans- 27 fer. In addition, the department of housing preservation and development 28 may grant an extension of the period of completion for any project 29 carried out with the substantial assistance of grants, loans or subsi- 30 dies from any federal, state or local governmental agency or instrumen- 31 tality, if such alterations, improvements or conversions are completed 32 within sixty months from commencement of construction. Provided, 33 further, that such conversions, alterations or improvements shall in any 34 event be completed prior to the thirty-first of December in the third 35 year next succeeding the effective date of this section. Exemption for 36 conversions, alterations or improvements pursuant to paragraph one, two, 37 three, four, six, seven, eight or ten of this subdivision shall continue 38 for a period not to exceed fourteen years and begin no sooner than the 39 first tax period immediately following the completion of such conver- 40 sions, alterations or improvements. Exemption for alterations or 41 improvements pursuant to paragraph five or nine of this subdivision 42 shall continue for a period not to exceed thirty-four years and shall 43 begin no sooner than the first tax period immediately following the 44 completion of such alterations or improvements. Such exemption shall be 45 equal to the increase in the valuation, which is subject to exemption in 46 full or proportionally under this subdivision for ten or thirty years, 47 whichever is applicable. After such period of time, the amount of such 48 exempted assessed valuation of such improvements shall be reduced by 49 twenty percent in each succeeding year until the assessed value of the 50 improvements is fully taxable. Provided, however, exemption for any 51 conversions, alterations or improvements, which are aided by a loan or 52 grant under article eight, eight-A, eleven, twelve, fifteen, or twenty- 53 two of the private housing finance law, section six hundred ninety-six-a 54 or section ninety-nine-h of the general municipal law, or section three 55 hundred twelve of the housing act of nineteen hundred sixty-four (42 56 U.S.C.A. 1452b), or the Cranston-Gonzalez national affordable housing

S. 8578 188 1 act, (42 U.S.C.A. 12701 et. seq.), or started after July first, nineteen 2 hundred eighty-three by a housing development fund company organized 3 pursuant to article eleven of the private housing finance law which are 4 carried out with the substantial assistance of grants, loans or subsi- 5 dies from any federal, state or local governmental agency or instrumen- 6 tality or which are carried out in a property transferred from the city 7 of New York and where alterations and improvements are completed within 8 seven years after the date of transfer may commence at the beginning of 9 any tax period subsequent to the start of such conversions, alterations 10 or improvements and prior to the completion of such conversions, alter- 11 ations or improvements. The assessed valuation of the land occupied by 12 such dwelling and any increase in assessed valuation resulting from 13 conversions, alterations, or improvements other than those made pursuant 14 to this section shall not be affected by the provisions of this section. 15 b-1. Notwithstanding the provisions of subdivision b of this section, 16 alterations, improvements or conversions of any building or structure 17 that are eligible for benefits pursuant to subdivision b of this section 18 except insofar as the gross cubic content of such building or structure 19 is increased thereby shall be eligible for such benefits insofar as the 20 gross cubic content of such building or structure is increased thereby 21 provided that: 22 (1) for all tax lots now existing or hereafter created, at least fifty 23 percent of the floor area of the completed building or structure 24 consists of the pre-existing building or structure that was converted, 25 altered or improved in accordance with subdivision b of this section, 26 and 27 (2) for tax lots now existing or hereafter created within the follow- 28 ing area in the borough of Manhattan, such conversions, alterations or 29 improvements are aided by a grant, loan or subsidy from any federal, 30 state or local agency or instrumentality: beginning at the intersection 31 of the United States pierhead line in the Hudson river and the center 32 line of Chambers street extended, thence easterly to the center line of 33 Chambers street and continuing along the center line of Chambers street 34 to the center line of Centre street, thence southerly along the center 35 line of Centre street to the center line of the Brooklyn Bridge to the 36 intersection of the Brooklyn Bridge and the United States pierhead line 37 in the East river, thence northerly along the United States pierhead 38 line in the East river to the intersection of the United States pierhead 39 line in the East river and the center line of one hundred tenth street 40 extended, thence westerly to the center line of one hundred tenth street 41 and continuing along the center line of one hundred tenth street to its 42 westerly terminus, thence westerly to the intersection of the center 43 line of one hundred tenth street extended and the United States pierhead 44 line in the Hudson river, thence southerly along the United States pier- 45 head line in the Hudson river to the point of beginning. 46 (3) For purposes of this subdivision, "floor area" shall mean the 47 horizontal areas of the several floors or any portion thereof of a 48 dwelling or dwellings and accessory structures on a lot measured from 49 the exterior faces of exterior walls or from the center line of party 50 walls. 51 (4) Nothing in this subdivision shall be construed to provide tax 52 abatement benefits pursuant to subdivision c of this section for the 53 costs attributable to the increased cubic content in any such building 54 or structure. 55 c. (1) Except as provided in paragraphs two, three and four of this 56 subdivision, the taxes upon any real property, including the land, may

S. 8578 189 1 be abated each year for a period of not more than twenty years by an 2 amount no greater than eight and one-third per centum of the reasonable 3 cost of eligible conversions, alterations or improvements provided in 4 paragraphs one through eight and paragraph ten of subdivision b of this 5 section provided that the abatement in taxes in any consecutive twelve- 6 month period shall in no event exceed the amount of taxes payable in 7 such twelve-month period; and provided further that alterations or 8 improvements pursuant to paragraph four of subdivision b of this section 9 shall only receive the benefits of this section if construction 10 commenced after January first, nineteen hundred seventy-eight and that 11 in no event shall the aggregate abatement exceed ninety per centum of 12 the reasonable cost of conversions, alterations or improvements provided 13 in paragraphs one, three, four, six, seven, and ten of subdivision b of 14 this section, or exceed fifty per centum of the reasonable cost of 15 conversions pursuant to paragraph one of subdivision b of this section 16 if construction commenced after January first, nineteen hundred eighty- 17 two or exceed fifty per centum of the reasonable cost of conversions 18 pursuant to paragraphs two and eight of subdivision b of this section, 19 or exceed one hundred per centum of the reasonable cost of alterations 20 or improvements pursuant to paragraph five of subdivision b of this 21 section provided that where alterations or improvements pursuant to 22 paragraphs four and six of subdivision b of this section are done in 23 conjunction with a conversion pursuant to paragraph two of subdivision b 24 of this section, the aggregate abatement shall not exceed fifty per 25 centum of the reasonable cost. Notwithstanding the foregoing, the taxes 26 upon real property, including the land may be abated for a period of not 27 more than twenty years at eight and one-third per centum of the reason- 28 able cost of conversions where construction actually commenced in good 29 faith prior to July first, nineteen hundred eighty pursuant to an alter- 30 ation permit issued by the department of buildings prior to July first, 31 nineteen hundred eighty provided that the aggregate abatement shall not 32 exceed ninety per centum of the reasonable cost thereof and provided 33 further that in no event shall the abatement in taxes in any twelve- 34 month period exceed the amount of taxes payable in such twelve-month 35 period. In no event, however, shall the aggregate abatement for conver- 36 sions, alterations or improvements pursuant to subdivision b of this 37 section exceed such dollar limit per existing class A dwelling unit or 38 additional unit created by conversion to a class A multiple dwelling as 39 may be established pursuant to rules and regulations promulgated by the 40 department of housing preservation and development pursuant to subdivi- 41 sion m of this section. Only those items of work set forth in the item- 42 ized cost breakdown schedule contained in rules and regulations promul- 43 gated by the department of housing preservation and development pursuant 44 to subdivision m of this section shall be eligible for tax abatement. 45 Such abatement shall commence on the later of July first, nineteen 46 hundred seventy-eight or the first day of the first tax quarter follow- 47 ing the completion of such construction and the filing for benefits as 48 provided in subdivision h of this section except that such period of 49 abatement may commence on the later of the first day of the first tax 50 quarter following commencement of any conversion, alteration or improve- 51 ment or (i) July first, nineteen hundred seventy-six, if aided by a loan 52 pursuant to article eight of the private housing finance law and 53 completed after December thirty-first, nineteen hundred seventy-five; or 54 (ii) July first, nineteen hundred seventy-seven, if aided by a loan 55 pursuant to article fifteen of the private housing finance law; or (iii) 56 July first, nineteen hundred eighty, if aided by a loan pursuant to

S. 8578 190 1 article eight-A of the private housing finance law; or (iv) July first, 2 nineteen hundred eighty, if aided by a loan pursuant to section three 3 hundred twelve of the housing act of nineteen hundred sixty-four (42 4 U.S.C.A. §1452b); or (v) July first, nineteen hundred ninety-two, if 5 started after such date and aided by a loan or grant under article elev- 6 en, twelve, or twenty-two of the private housing finance law, section 7 six hundred ninety-six-a or section ninety-nine-h of the general munici- 8 pal law, or the Cranston-Gonzalez national affordable housing act (42 9 U.S.C.A. 12701 et seq.); or (vi) July first, nineteen hundred eighty- 10 eight, if started after such date by or on behalf of a company not qual- 11 ified under any of the above provisions, which is a not-for-profit 12 corporation qualified pursuant to section 501(c)(3) of the internal 13 revenue code and which has entered into a regulatory agreement with the 14 local housing agency requiring operation of the property as housing for 15 low and moderate income persons and families. 16 (2) In the case of alterations or improvements pursuant to paragraph 17 five of subdivision b of this section which are carried out with the 18 substantial assistance of grants, loans or subsidies from any federal, 19 state or local agency or instrumentality or any not-for-profit philan- 20 thropic organization one of whose primary purposes is providing low or 21 moderate income housing or financed with mortgage insurance by the New 22 York city residential mortgage insurance corporation or the state of New 23 York mortgage agency or pursuant to a program established by the federal 24 housing administration for rehabilitation of existing multiple dwellings 25 in a neighborhood strategy area as defined by the United States depart- 26 ment of housing and urban development, the abatement of taxes on such 27 property, including the land, shall not exceed the lesser of the actual 28 cost of the alterations or improvements or one hundred fifty per centum 29 of the certified reasonable cost of the alterations or improvements, as 30 determined under regulations of the department of housing preservation 31 and development, and the annual abatement of taxes shall not exceed 32 twelve and one-half per centum of such certified reasonable cost, 33 provided that such abatement shall not be effective for more than twenty 34 years and the annual abatement of taxes in any consecutive twelve-month 35 period shall in no event exceed the amount of taxes payable in such 36 twelve-month period. 37 (3) In the case of alterations or improvements carried out with the 38 substantial assistance of grants, loans or subsidies from any federal, 39 state or local agency or instrumentality or any not-for-profit philan- 40 thropic organization one of whose primary purposes is providing low or 41 moderate income housing, or financed with mortgage insurance by the New 42 York city residential mortgage insurance corporation or the state of New 43 York mortgage agency or pursuant to a program established by the federal 44 housing administration for rehabilitation of existing multiple dwellings 45 in a neighborhood strategy area as defined by the United States depart- 46 ment of housing and urban development where such alterations or improve- 47 ments are done on property located in census tracts in which seventy- 48 five percent or more of the population live in households which earn 49 fifty percent or less of the median household income of the city, the 50 abatement of taxes on such property, including the land, shall not 51 exceed the lesser of the actual cost of the alterations or improvements 52 or one hundred fifty per centum of the certified reasonable cost of the 53 alterations or improvements, as determined under regulations of the 54 department of housing preservation and development, and the annual 55 abatement of taxes shall not exceed twelve and one-half per centum of 56 such certified reasonable cost, provided that such abatement shall not

S. 8578 191 1 be effective for more than twenty years and the annual abatement of 2 taxes in any consecutive twelve-month period shall in no event exceed 3 the amount of taxes payable in such twelve-month period. 4 (4) In the case of alterations, improvements or conversions pursuant 5 to paragraph eight of subdivision b of this section, the abatement of 6 taxes on such property, including the land, shall not exceed the lesser 7 of the actual cost of the alterations or improvements or one hundred 8 fifty per centum of the certified reasonable cost of the alterations or 9 improvements, as determined under regulations of the department of hous- 10 ing preservation and development, and the annual abatement of taxes 11 shall not exceed twelve and one-half per centum of such certified 12 reasonable cost, provided that such abatement shall not be effective for 13 more than twenty years and the annual abatement of taxes in any consec- 14 utive twelve-month period shall in no event exceed the amount of taxes 15 payable in such twelve-month period. 16 d. The benefits of this section shall apply: 17 (1) to any multiple dwelling which is altered, improved or increased 18 in valuation with aid of a loan provided by the city of New York or the 19 city of Staten Island, the New York city housing development corporation 20 or the United States department of housing and urban development for the 21 elimination of conditions dangerous to human life or detrimental to 22 health, including nuisances as defined in section three hundred nine of 23 the multiple dwelling law, or other rehabilitation or improvement wheth- 24 er or not all of the units thereof were in existence prior to rehabili- 25 tation pursuant to the provisions of: (i) article two, eight or eight-A 26 of the private housing finance law provided that such dwelling is made 27 available solely to persons or families of low income as defined in said 28 articles, (ii) article twelve of the private housing finance law, (iii) 29 article fifteen of the private housing finance law or (iv) any federal 30 law where the multiple dwelling is supervised or regulated by the United 31 States department of housing and urban development. 32 (2) except as hereinafter provided, to any building or structure which 33 is converted to a class A multiple dwelling or to any existing dwelling 34 which is substantially rehabilitated, and further provided that the 35 rents subsequent to conversion or substantial rehabilitation shall not 36 exceed such amount as may be fixed: (i) by the United States department 37 of housing and urban development, (ii) pursuant to the private housing 38 finance law of the state of New York, or (iii) pursuant to chapter three 39 or chapter four of title twenty-six of the code of the preceding munici- 40 pality, provided that the initial legal regulated rent for the dwelling 41 units shall be the rent charged and paid by the initial tenant and 42 registered with the New York state division of housing and community 43 renewal. Buildings or structures which are converted to class A multiple 44 dwellings and existing dwellings which are substantially rehabilitated 45 shall contain bedrooms in a number equal to at least fifty percent of 46 the apartments created where an alteration permit has been issued by the 47 department of buildings prior to April first, nineteen hundred eighty 48 and seventy-five percent of the apartments created where an alteration 49 permit has been issued by the department of buildings on or after April 50 first, nineteen hundred eighty provided, however, that if a building or 51 structure is converted from a non-residential use to a class A multiple 52 dwelling and the units therein contain an average floor area of one 53 thousand square feet, such requirement as to the number of bedrooms 54 shall not be applicable and if an existing dwelling is substantially 55 rehabilitated, the seventy-five percent bedroom requirement shall be 56 reduced to the extent its application would necessitate a reduction in

S. 8578 192 1 the number of units which are contained in the existing dwelling prior 2 to commencement of substantial rehabilitation. 3 (3) to any multiple dwelling, building or structure otherwise eligible 4 for any of the benefits of this section which: 5 (i) is operated exclusively for the benefit of persons or families who 6 are or will be entitled to occupancy by reason of ownership of stock or 7 membership in the corporate owner, or for the benefit of such persons or 8 families and other persons or families entitled to occupancy under 9 applicable provisions of law without ownership of stock or membership in 10 the corporate owner, or (ii) is owned as a condominium and is occupied 11 as the residence or home of three or more families living independently 12 of each other; provided, however, that, in addition to all other condi- 13 tions of eligibility for the benefits of this section, except for multi- 14 ple dwellings in which units have been newly created by substantial 15 rehabilitation of vacant buildings or conversions of non-residential 16 buildings, the availability of benefits under this section for such 17 multiple dwellings, buildings or structures shall be conditioned on the 18 following: (a) alterations or improvements to at least one building-wide 19 system are part of the application for benefits, and (b) (i) the 20 assessed valuation of such multiple dwelling, building, or structure, 21 including land, shall not exceed an average of thirty thousand dollars 22 per dwelling unit at the time of the commencement of the alterations or 23 improvements, and (ii) during the three years immediately preceding the 24 commencement of the alterations or improvements the average per room 25 sale price of the dwelling units or the stock allocated to such dwelling 26 units shall have been no greater than thirty-five percent of the maximum 27 mortgage amount for a single family home eligible for purchase by the 28 Federal National Mortgage Association; provided that if less than ten 29 percent of the dwelling units or an amount of stock less than the amount 30 allocable to ten percent of such dwelling units was not transferred 31 during such preceding three year period, eligibility for benefits shall 32 be conditioned upon the multiple dwelling, building, or structure having 33 an assessed valuation per dwelling unit of no more than twenty-five 34 thousand dollars at the time of the commencement of the alterations or 35 improvements. Provided, further, that such benefits shall be available 36 only for alterations or improvements commenced on or after June first, 37 nineteen hundred eighty-six. 38 Notwithstanding the foregoing, the benefits of this section shall be 39 available for any alterations or improvements commenced after August 40 seventh, two thousand eight for such multiple dwellings, buildings or 41 structures and shall be conditioned on the following: (1) the applica- 42 tion for benefits may include any item of work designated in the rules 43 adopted by the department of housing preservation and development as a 44 major capital improvement or asbestos abatement to the extent such 45 asbestos abatement is required by federal, state and local law; and (2) 46 (i) the assessed valuation of such multiple dwelling, building or struc- 47 ture, including land, shall not exceed an average of forty thousand 48 dollars per dwelling unit at the time of the commencement of the alter- 49 ations or improvements; and (ii) the average per room sale price of the 50 dwelling units or the stock allocated to such dwelling units shall have 51 been no greater than thirty-five percent of the maximum mortgage amount 52 for a single family home eligible for purchase by the Federal National 53 Mortgage Association during the three years immediately preceding the 54 commencement of the alterations or improvements; provided that if less 55 than ten percent of the dwelling units or an amount of stock less than 56 the amount allocable to ten percent of such dwelling units was not

S. 8578 193 1 transferred during such preceding three-year period, eligibility for 2 benefits shall be conditioned upon the multiple dwelling, building, or 3 structure having an assessed valuation per dwelling unit of no more than 4 forty thousand dollars at the time of the commencement of the alteration 5 or improvement. Provided, however, benefits shall also be available 6 under this section for work completed in any such multiple dwelling, 7 building or structure within the first three years of its conversion to 8 cooperative or condominium ownership, as evidenced by the date on which 9 the first closing in a condominium to a bona fide purchaser occurs or in 10 the case of a cooperative, the date on which the shares allocable to a 11 unit are conveyed to a bona fide purchaser, provided, however, that the 12 availability of such benefits for conversions, alterations or improve- 13 ments commenced prior to June first, nineteen hundred eighty-six, except 14 with respect to governmentally assisted projects as defined in regu- 15 lations issued by the department of housing preservation and develop- 16 ment, shall be conditioned upon the completion of such conversions, 17 alterations or improvements within three years after acceptance for 18 filing of the prospectus to establish such cooperative or condominium 19 entity by the attorney general of the state of New York. The maximum 20 amount of tax abatement which may be received in any tax period under 21 this section by any such multiple dwelling, building or structure for 22 any alterations and improvements commenced three or more years after its 23 initial conversion to cooperative or condominium ownership shall be 24 limited to an amount not in excess of two thousand five hundred dollars 25 per dwelling unit of the certified reasonable cost of the alterations or 26 improvements as determined under regulations of the department of hous- 27 ing preservation and development. 28 (3-a) Notwithstanding any contrary provision of paragraph three of 29 this subdivision, the availability of any benefits under this section to 30 any multiple dwelling, building or structure owned and operated by a 31 limited-profit housing company established pursuant to article two of 32 the private housing finance law shall not be conditioned upon the 33 assessed valuation of such multiple dwelling, building or structure, 34 including land, as calculated as an average dollar amount per dwelling 35 unit, at the time of the commencement of the alterations or improve- 36 ments; provided, however, that such limited-profit housing company (i) 37 is organized and operating as a mutual company, (ii) continues to be 38 organized and operating as a mutual company and to own and operate the 39 multiple dwelling, building or structure receiving such benefits, and 40 (iii) has entered into a binding and irrevocable agreement with the 41 commissioner of housing of the state of New York, the supervising agen- 42 cy, the New York city housing development corporation, or the New York 43 state housing finance agency prohibiting the dissolution or reconsti- 44 tution of such limited-profit housing company pursuant to section thir- 45 ty-five of the private housing finance law for not less than fifteen 46 years from the commencement of such benefits. For the purposes of this 47 paragraph, the terms "mutual company" and "supervising agency" shall 48 have the same meanings as set forth in section two of the private hous- 49 ing finance law. 50 (4) provided that, in the case of any building or structure: (i) in 51 which conversion, alteration or improvement commences on or after Janu- 52 ary first, nineteen hundred eighty-two, and (ii) which is located within 53 an area designated herein as a minimum tax zone, the benefits of this 54 section shall not be applied to abate or reduce the taxes upon the land 55 portion of such real property, which shall continue to be taxed based 56 upon the assessed valuation of the land and the applicable tax rate at

S. 8578 194 1 the time such taxes are levied; provided, however, that the foregoing 2 limitation with respect to abatement of taxes shall not apply: 3 (A) to any multiple dwelling which is eligible for benefits based upon 4 moderate rehabilitation pursuant to paragraph four of subdivision b of 5 this section, or (B) to any multiple dwelling which is governmentally 6 assisted as such term is defined in regulations to be promulgated by the 7 department of housing preservation and development pursuant to subdivi- 8 sion m of this section. 9 (5) provided that, in the case of any building or structure: (i) in 10 which conversion, alteration or improvement commences on or after Janu- 11 ary first, nineteen hundred eighty-two, and (ii) which is located within 12 an area designated herein as a tax abatement exclusion zone, the bene- 13 fits of this section shall not be applied to abate or reduce the taxes 14 upon such real property, which shall continue to be taxed based upon the 15 assessed valuation of the land and the improvements and the applicable 16 tax rate at the time such taxes are levied; provided, however, that the 17 foregoing limitation shall not deprive such real property of any bene- 18 fits of exemption from taxation of an increase in assessed valuation to 19 which it is entitled pursuant to this section; provided, however, that 20 the foregoing limitation with respect to abatement of taxes shall not 21 apply: 22 (A) to any alteration or improvement designated as a major capital 23 improvement, by the regulations promulgated by the department of housing 24 preservation and development pursuant to subdivision m of this section, 25 provided that the maximum amount of tax abatement which may be received 26 in any tax period under this section by any such multiple dwelling, 27 building or structure for any alterations and improvements shall be 28 limited to an amount not in excess of twenty-five hundred dollars per 29 dwelling unit of the certified reasonable cost of the alterations and 30 improvements as determined under regulations of the department of hous- 31 ing preservation and development, or (B) to any multiple dwelling which 32 is governmentally assisted as such term is defined by said regulations. 33 (8) Limitation on benefits. (a) The provisions of this paragraph shall 34 apply to all conversions, alterations and improvements except the 35 following: 36 (i) alterations or improvements under paragraphs three, five and six 37 of subdivision b of this section, where carried out: 38 (A) with the substantial assistance of grants, loans or subsidies from 39 any federal, state or local agency or instrumentality, or any not-for- 40 profit philanthropic organization one of whose primary purposes is 41 providing low or moderate incoming housing; or 42 (B) with mortgage insurance by the New York city residential mortgage 43 insurance corporation or the state of New York mortgage agency; or 44 (C) in the areas bounded and described as follows: 45 AREAS IN THE COUNTY OF RICHMOND: 46 PORT RICHMOND--The area bounded by the Kill Van Kull; Jewett Avenue 47 and its prolongation; Forest Avenue; and, the Willow Brook Expressway. 48 NEW BRIGHTON--The area bounded by the Kill Van Kull; Westervelt 49 Avenue; Brook Street; Castleton Avenue; and, North Randall Avenue and 50 its prolongation. 51 STAPLETON--The area bounded by Victory Boulevard; the Upper New York 52 Bay; Vanderbilt Avenue; Van Duzer Street; Cebra Avenue; and, St. Pauls 53 Avenue. 54 FOX HILLS--The area bounded by Vanderbilt Avenue; the Upper New York 55 Bay; the Staten Island Rapid Transit Railway right of way; and, the 56 Staten Island Expressway.

S. 8578 195 1 (D) pursuant to a program established by the federal housing adminis- 2 tration, federal national mortgage association, federal home loan mort- 3 gage corporation or government national mortgage association for the 4 rehabilitation of existing multiple dwellings for persons of low or 5 moderate income, or a program of mortgage insurance for the rehabili- 6 tation of existing multiple dwellings pursuant to section two hundred 7 twenty-three-f of the national housing act, as amended, or a program of 8 mortgage insurance established by the federal housing administration for 9 the rehabilitation of existing multiple dwellings for persons of low or 10 moderate income; provided that properties receiving benefits under such 11 programs are located in a neighborhood strategy area, as defined, by the 12 United States department of housing and urban development, or in one of 13 the areas listed in subparagraph (C) of this paragraph. 14 (ii) alterations or improvements under paragraph four of subdivision b 15 of this section; and 16 (iii) conversion of residential units qualified for the protection of 17 article seven-C of the multiple dwelling law under paragraph seven of 18 subdivision b of this section. 19 (b) Abatement limitations. (i) The amount of abatement under subdivi- 20 sion c of this section shall not exceed the certified reasonable cost of 21 the conversion, alteration or improvement, as determined under regu- 22 lations of the department of housing preservation and development, 23 provided that the amount of certified reasonable cost eligible for 24 abatement under this section shall not exceed fifteen thousand dollars 25 for a dwelling unit of three and one-half rooms, as determined under the 26 applicable zoning resolution, and a comparable amount for dwelling units 27 of other sizes, determined under regulations of the department of hous- 28 ing preservation and development, and further provided that the amount 29 of certified reasonable cost eligible for abatement under this section 30 may exceed fifteen thousand dollars or such comparable amount per dwell- 31 ing unit, but not more than twenty-five percent above such amount, upon 32 application of the property owner and a determination by the department 33 of housing preservation and development that: 34 (A) in the case of a conversion under paragraph one or two of subdivi- 35 sion b of this section, the increased cost is necessary to comply with 36 applicable law; 37 (B) in the case of an alteration or improvement under paragraph six of 38 subdivision b of this section, the increased cost is necessary to elimi- 39 nate the unhealthy or dangerous conditions or replace the inadequate and 40 obsolete facilities in a satisfactory manner; 41 (C) in the case of an alteration or improvement under paragraph five 42 of subdivision b of this section, the increased cost is necessary to 43 conserve energy in a satisfactory manner; or 44 (D) in the case of an alteration or improvement under paragraph three 45 of subdivision b of this section, the increased cost, to the extent such 46 cost is not offset by any and all tax credits received as a result of 47 the alteration or improvement, is necessary to comply with any provision 48 of law regulating historic or landmark buildings or structures. 49 (ii) Notwithstanding any other provisions of this subparagraph, and in 50 addition to all other conditions of eligibility for the benefits of this 51 section, the availability of abatements pursuant to subdivision c of 52 this section for any multiple dwellings, buildings or structures not 53 owned as a condominium or cooperative, except for multiple dwellings in 54 which units have been newly created by substantial rehabilitation of 55 vacant buildings or conversions of non-residential buildings, shall be 56 conditioned on the assessed valuation of such multiple dwelling, build-

S. 8578 196 1 ing or structure, including land, not exceeding an average of thirty 2 thousand dollars per dwelling unit at the time of commencement of the 3 alterations or improvements, provided, however, that such average shall 4 not exceed forty thousand dollars per dwelling unit at the time of 5 commencement of the alteration or improvement for alterations or 6 improvements commenced after the effective date of this paragraph. 7 (c) Exemption limitations. (i) The increase in assessed valuation of 8 the real property resulting from the conversion, alteration or improve- 9 ment under subdivision b of this section, shall be exempt from taxation 10 as provided in this section, only to the extent provided in this subpar- 11 agraph, provided that this subparagraph shall not apply to any conver- 12 sions, alterations or improvements commenced on or after June first, 13 nineteen hundred eighty-six. The amount of the increased assessed valu- 14 ation that is exempt from taxation shall depend on the amount of the 15 total assessed value per dwelling unit calculated by dividing the amount 16 of the total assessed valuation of the property, as determined under the 17 real property tax law, by the number of dwelling units in the building 18 after completion of the conversion, alteration or improvement. The 19 amount of increased assessed valuation that will be exempt from taxation 20 for buildings with total assessed valuation per dwelling unit of less 21 than thirty-eight thousand dollars shall be calculated pursuant to the 22 following formula: (A) any portion of total assessed valuation of the 23 property attributable to the first eighteen thousand dollars of total 24 assessed valuation per dwelling unit, to the extent it represents 25 increased assessed valuation, shall be one hundred percent exempt; (B) 26 any portion of total assessed valuation attributable to the next four 27 thousand dollars of total assessed valuation per dwelling unit, to the 28 extent it represents increased assessed valuation, shall be seventy-five 29 percent exempt; (C) any portion of total assessed valuation attributable 30 to the next four thousand dollars of total assessed valuation per dwell- 31 ing unit, to the extent it represents increased assessed valuation, 32 shall be fifty percent exempt; (D) any portion of total assessed valu- 33 ation attributable to the next four thousand dollars of total assessed 34 valuation per dwelling unit, to the extent it represents increased 35 assessed valuation, shall be twenty-five percent exempt; and (E) any 36 portion of total assessed valuation attributable to the next eight thou- 37 sand dollars of total assessed valuation per dwelling unit, to the 38 extent it represents increased assessed valuation per dwelling unit, 39 shall be fully taxable. Property with a total assessed valuation per 40 dwelling unit of thirty-eight thousand dollars or more shall not be 41 eligible for a tax exemption under this section. 42 (ii) In calculating the amount of increased assessed valuation that 43 will be exempt from taxation pursuant to the formula in clause (i) of 44 this subparagraph, the full amount of total assessed valuation that does 45 not represent increased assessed valuation shall be applied in such 46 formula prior to the inclusion of any amount of increased assessed valu- 47 ation. 48 (iii) Where the real property is occupied in part for residential 49 purposes and in part for non-residential purposes, the assessed valu- 50 ation of the property shall be appropriately allocated between the resi- 51 dential and non-residential portions. In computing the total assessed 52 valuation per dwelling unit under this subparagraph, only the amount of 53 valuation so allocated to the residential portion shall be considered. 54 (iv) Commencing with the assessment roll for the year nineteen hundred 55 eighty-four, where there has been a change in the level of assessment 56 from the assessment roll of the prior year of properties receiving

S. 8578 197 1 exemptions under this section, the department of finance may petition 2 the state board to certify the percentage of such change for the 3 purposes of this section. In such petition, the department of finance 4 shall submit such information as the state board shall require in order 5 to certify the percentage of such change. The state board may also make 6 such a certification on its own motion. Upon receipt of such certif- 7 ication from the state board, the department of housing preservation and 8 development may modify the dollar values of total assessed valuation per 9 dwelling unit in clause (i) of this subparagraph to reflect the percent- 10 age change in the level of assessment as shown in such certification. As 11 used in this subparagraph, the term "change in the level of assessment" 12 means the net increase or decrease in the assessed valuation of proper- 13 ties in the assessing unit that received exemptions under this section 14 in the current year as compared to those that received exemptions under 15 this section in the prior year as a result of assessing such properties 16 at a higher or lower ratio of full value. 17 (v) (A) Notwithstanding the provisions of clause (i) of this subpara- 18 graph, the department of housing preservation and development may reduce 19 or remove the limitations on the exemption from taxation provided in 20 such clause with respect to a particular property undergoing alteration 21 or improvement, upon application of the property owner and a determi- 22 nation by such department that the increased benefit will increase the 23 number of dwelling units that will be affordable to persons of low and 24 moderate income, and the increased benefit is necessary to make econom- 25 ically viable units or improvement in the quality of dwelling units that 26 will be affordable to persons of low or moderate income. 27 (B) As used in this subparagraph, the term "persons of low or moderate 28 income" shall mean persons who would qualify for housing subsidies 29 pursuant to section two hundred thirty-five of the national housing act, 30 as amended, at one hundred thirty-five percent of the income limitations 31 provided therein. 32 (C) Upon receiving an application under this subparagraph in proper 33 form, the department of housing preservation and development shall imme- 34 diately submit it to the community board for the area in which the 35 project is located, which may, within forty-five days of receiving it 36 and after a public hearing, make recommendations to the department as to 37 the application. The department shall act on the application within 38 sixty days of receiving it from the property owner in proper form, but 39 not before expiration of the time for the community board to make its 40 recommendations, unless the board has acted sooner. 41 (d) The department of housing preservation and development may set 42 forth preliminarily the terms of a determination under subparagraph (b) 43 or (c) of this paragraph prior to the commencement of the conversion, 44 alteration or improvement. Any such determination shall take effect 45 after completion of the work in accordance with the terms of the appli- 46 cation made by the property owner. 47 (e) Any determination of the department of housing preservation and 48 development to increase an abatement under subparagraph (b) of this 49 paragraph, or to reduce or remove the exemption limitations under 50 subparagraph (c) of this paragraph shall state the basis for the deter- 51 mination and the data on which the determination was based. Such deter- 52 mination shall be published in the City Record for five consecutive days 53 after the determination is rendered. 54 e. Notwithstanding any provision of this section or any other section 55 of the code to the contrary, where such dwelling is in an area where a 56 plan of redevelopment, program of neighborhood improvement, housing

S. 8578 198 1 maintenance, demonstration rehabilitation or concentrated code enforce- 2 ment is being carried out, the rents subsequent to conversion, alter- 3 ation or improvement may exceed the maximum amount allowable pursuant to 4 chapter four of title twenty-six of the code of the preceding munici- 5 pality where necessity for the adjustment of such rents is certified by 6 the department of housing preservation and development. 7 f. Subject to the provisions of subdivision d of this section, the 8 department of housing preservation and development shall determine and 9 certify the reasonable cost of any such conversions, alterations or 10 improvements and eligibility for the benefits of this section and for 11 that purpose may adopt rules and regulations, administer oaths to and 12 take the testimony of any person, including but not limited to the owner 13 of such property, may issue subpoenas requiring the attendance of such 14 persons and the production of such bills, books, papers or other docu- 15 ments as it shall deem necessary, may make preliminary estimates of the 16 maximum reasonable cost of such conversions, alterations or improve- 17 ments, may establish maximum allowable costs of specified units, 18 fixtures or work in such conversions, alterations or improvements, and 19 may require the submission of plans and specifications of such conver- 20 sions, alterations or improvements, and may require the submission of 21 plans and specifications of such conversions, alterations or improve- 22 ments before the start thereof. Applications for certification shall 23 include all bills and other documents showing the cost of construction 24 or such other evidence of such cost as shall be satisfactory to the 25 department of housing preservation and development, including, without 26 limitation, certification of cost by a certified public accountant in 27 accordance with generally accepted accounting principles. Applications 28 for certification for a building eligible for benefits pursuant to para- 29 graph three of subdivision d of this section, for alterations or 30 improvements completed more than three years after its conversion to 31 cooperative or condominium ownership, shall include such documentation 32 of the sale price of dwelling units or stock allocated to such dwelling 33 units as may be required by the department of housing preservation and 34 development, including but not limited to certification of sales price 35 by a certified public accountant. In addition, such applications shall 36 contain the consent of the applicant to allow the department of housing 37 preservation and development access to records, including but not limit- 38 ed to other tax records, as the department may deem appropriate to 39 enforce such conditions of eligibility. Applications for certification 40 filed on or after January first, nineteen hundred seventy-nine pursuant 41 to paragraphs one through six and paragraph eight of subdivision b of 42 this section shall be made after completion and within forty-eight 43 months following the start of construction of the conversion, alteration 44 or improvement, except that applications for certification for alter- 45 ations or improvements undertaken by a housing development fund company 46 organized pursuant to article eleven of the private housing finance law, 47 which are carried out with the substantial assistance of grants, loans 48 or subsidies from any federal, state or local governmental agency or 49 instrumentality or which are carried out in a property transferred from 50 the city of New York or city of Staten Island shall be made after 51 completion and within seventy-two months following the start of the 52 construction of the alteration or improvement. Provided, however, the 53 department of housing preservation and development is empowered to grant 54 an extension of the period for application for any project carried out 55 with the substantial assistance of loans, grants or subsidies from any 56 federal, state or local governmental agency or instrumentality, if such

S. 8578 199 1 application is made within seventy-two months from commencement of 2 construction. Applications for certification pursuant to paragraph seven 3 of subdivision b of this section shall be filed within twelve months of 4 the date of completion as provided by such subdivision. 5 g. To the end that conversions, alterations or improvements in such 6 property shall interfere as little as practicable with the clearance, 7 rehabilitation or rebuilding of sub-standard and insanitary areas and 8 shall be confined to buildings and structures which are structurally 9 sound and comply with applicable provisions of law, eligibility for the 10 benefits of this section shall be restricted to such buildings and 11 structures which the department of housing preservation and development 12 shall certify: 13 (1) to be structurally sound and to comply with applicable provisions 14 of law, as determined by the department of buildings, which certif- 15 ication shall be evidenced by a certificate describing the property 16 involved; 17 (2) if in an area for which a final plan of clearance, replanning, 18 reconstruction, rehabilitation, or redevelopment has been approved 19 pursuant to article fifteen of the general municipal law, or if in an 20 area for which an urban renewal plan or tests, studies or demonstrations 21 have been approved pursuant to article fifteen of the general municipal 22 law, to be improved in conformity with such replanning, reconstruction, 23 rehabilitation, redevelopment, tests, studies, demonstrations or plan; 24 and 25 (3) if in an area where a program of local neighborhood improvement or 26 housing maintenance is being carried out, to be in conformity with such 27 program. 28 h. Application forms for the benefits of this section shall be filed 29 with the department of finance within the time periods to be established 30 by rules and regulations promulgated by the department of housing pres- 31 ervation and development pursuant to subdivision m of this section. The 32 department of finance shall certify the amount of taxes to be abated, 33 pursuant to the certification of the department of housing preservation 34 and development as herein provided. No such application shall be 35 accepted unless accompanied by a copy of the certificate of the depart- 36 ment of housing preservation and development both as to reasonable cost 37 and as to eligibility as provided in subdivision f of this section. 38 i. The benefits of this section shall not apply: 39 (1) except as provided in subdivision d of this section, to any exist- 40 ing dwelling which is not subject to the provisions of the emergency 41 housing rent control law or to the city rent and rehabilitation law or 42 to the city rent stabilization law or to the private housing finance law 43 or to any federal law providing for supervision or regulation by the 44 United States department of housing and urban development; 45 (2) to any private dwelling, notwithstanding any other provision of 46 this section, unless it is in an area where a plan of redevelopment or 47 program of neighborhood improvement, housing maintenance, demonstration 48 rehabilitation or concentrated code enforcement is being carried out and 49 the department of housing preservation and development finds that the 50 conversion, alteration or improvement is in conformity with such plan of 51 redevelopment, or program of neighborhood improvement, housing mainte- 52 nance, demonstration rehabilitation or concentrated code enforcement; 53 provided that, however, for the purposes of this section, a class A 54 multiple dwelling may be deemed to include any garden-type maisonette 55 dwelling project consisting of a series of dwelling units which together 56 and in their aggregate were arranged or designed to provide three or

S. 8578 200 1 more apartments and are provided as a group collectively with all essen- 2 tial services such as, but not limited to, water supply, house sewers 3 and heat, and which are in existence and operated as a unit under single 4 ownership on the date upon which an application for the benefits of this 5 section is received by the department of housing preservation and devel- 6 opment, even though certificates of occupancy were issued for portions 7 thereof as private dwellings; 8 (3) to any property receiving tax exemption or abatement concurrently 9 for rehabilitation or new construction under any other provision of New 10 York state, city of New York or city of Staten Island law with the 11 exception of any alteration or improvement to property receiving such 12 tax exemption or abatement under the provisions of the private housing 13 finance law, provided, however, that the benefits of this section shall 14 not apply to any alterations or improvements done in connection with the 15 refinancing, pursuant to section 223f of the national housing act, as 16 amended, of a housing project organized pursuant to article two and 17 article four of the private housing finance law; 18 (4) to any multiple dwelling for ordinary repairs and normal replace- 19 ment of maintenance items, as provided in paragraph one of subdivision 20 a, hereof in the event that the dwelling thereof is receiving the bene- 21 fits of this section for other ordinary repairs and normal replacement 22 of maintenance items as of the December thirty-first preceding the date 23 of application; 24 (5) to the conversion of any building or structure, or portion there- 25 of: 26 (i) which is located in the city of Staten Island where residential 27 conversion as of right is not permitted by the zoning resolution; 28 (ii) where such benefits are eliminated by regulations to be promul- 29 gated by the department of housing preservation and development pursuant 30 to subdivision m of this section, unless, in the case of a building or 31 structure in Richmond county, construction actually commenced prior to 32 October first, nineteen hundred eighty-three, pursuant to an alteration 33 permit. A copy of any proposed regulation pursuant to this paragraph 34 shall be transmitted to the city council not less than sixty days prior 35 to its publication in the City Record, pursuant to section eleven 36 hundred five of the charter of the preceding municipality as it existed 37 on the first of January, in the year next succeeding the effective date 38 of this section; and 39 (iii) provided that the provisions of this paragraph shall not apply 40 to conversions pursuant to paragraph seven of subdivision b of this 41 section. 42 (6) to any conversion of or alteration or improvement, commenced on or 43 after July first, nineteen hundred eighty-two, to any class B multiple 44 dwelling or class A multiple dwelling used in whole or in part for 45 single room occupancy, regardless of the status or use of the building 46 after the conversion, alteration or improvement unless such conversion, 47 alteration or improvement is carried out with the substantial assistance 48 of grants, loans or subsidies from any federal, state or local agency or 49 instrumentality. 50 (7) to any conversion of or alteration or improvement, commenced on or 51 after the effective date of this paragraph, to any property classified 52 under the zoning resolution as a non-profit institution with sleeping 53 accommodations, regardless of the status or use of the building after 54 the conversion, alteration or improvement unless such conversion, alter- 55 ation or improvement is carried out with the substantial assistance of

S. 8578 201 1 grants, loans or subsidies from any federal, state or local agency or 2 instrumentality. 3 j. Notwithstanding the provisions of the multiple dwelling law, or any 4 local law, ordinance, provisions of this code, rule or regulation, any 5 dwelling to which alterations and improvements are made pursuant to this 6 section and which did not require a certificate of occupancy on April 7 second, nineteen hundred forty-five, may be occupied lawfully after such 8 date upon the completion of such alterations and improvements without 9 such a certificate being obtained, provided, however, that such alter- 10 ations and improvements shall have been made in conformity with law and 11 the applicable provisions for fire protection required by articles six 12 and seven of the multiple dwelling law. 13 k. No owner of a dwelling to which the benefits of this section shall 14 be applied, nor any agent, employee, manager or officer of such owner 15 shall directly or indirectly deny to any person because of race, color, 16 creed, national origin, gender, sexual orientation, disability, marital 17 status, age, religion, alienage or citizenship status, or the use of, 18 participation in, or being eligible for a governmentally funded housing 19 assistance program, including, but not limited to, the section 8 housing 20 voucher program and the section 8 housing certificate program, 42 U.S.C. 21 1437 et seq., or the senior citizen rent increase exemption program, 22 pursuant to either chapter seven of title twenty-six of the code of the 23 preceding municipality or section 26-509 of such code, any of the dwell- 24 ing accommodations in such property or any of the privileges or services 25 incident to occupancy therein. The term "disability" as used in this 26 subdivision shall have the meaning set forth in section 8-102 of the 27 code of the preceding municipality. Nothing in this subdivision shall 28 restrict such consideration in the development of housing accommodations 29 for the purpose of providing for the special needs of a particular 30 group. 31 l. Any person who shall knowingly and willfully make any false state- 32 ment as to any material matter in any application for the benefits of 33 this section shall be guilty of an offense punishable by a fine of not 34 more than five hundred dollars or imprisonment for not more than ninety 35 days, or both. The commissioner of the department of housing preserva- 36 tion and development may reduce or revoke past and future exemption or 37 tax abatement authorized pursuant to this section if the application for 38 tax exemption or tax abatement contains a false statement or false 39 information as to a material matter or omits a material matter. 40 m. Each agency or department to which functions are assigned by this 41 section may adopt and promulgate rules and regulations for the effectua- 42 tion of the purpose of this section. 43 n. The department of housing preservation and development may require 44 a filing fee in an amount as provided by the rules and regulations 45 promulgated by the department of housing preservation and development 46 pursuant to subdivision m of this section. 47 o. Any tax abatement granted for a period of nine years to a multiple 48 dwelling aided by a loan provided by the city of New York prior to Janu- 49 ary first, nineteen hundred seventy-one, shall upon application therefor 50 be adjusted to extend for a period of up to twenty years, provided that 51 the total abatement before and after such adjustment shall not exceed 52 the total abatement to which such property was initially entitled under 53 this section. 54 p. This section is enacted pursuant to the provisions of section four 55 hundred eighty-nine of the real property tax law and subdivision two of 56 section four hundred five of the private housing finance law.

S. 8578 202 1 q. No application for the benefits of this section shall be accepted 2 by the department of finance if there are outstanding real estate taxes 3 or water and sewer charges or payments in lieu of taxes which were due 4 and owing as of the last day of the tax period preceding the date of 5 such filing with the department of finance, provided that an applicant 6 aided by article eight or article fifteen of the private housing finance 7 law shall have such application accepted by the department of finance if 8 there are no outstanding real estate taxes or water and sewer charges 9 due and owing as of the last day of the tax period preceding commence- 10 ment of construction. 11 r. In the event that any building or structure receiving the benefits 12 of this section shall become operated exclusively for commercial, hotel 13 or transient hotel use, the tax commission shall withdraw benefits 14 granted herein prospectively. 15 s. The benefits of this section shall not apply to alterations or 16 improvements to existing dwellings in existence on December thirty- 17 first, nineteen hundred seventy-five where (i) such alterations or 18 improvements were completed on or before December thirty-first, nineteen 19 hundred seventy-five, and (ii) no dwelling units thereof on December 20 thirty-first, nineteen hundred seventy-five had rentals which were 21 subject to control by the city rent agency pursuant to chapter four of 22 title twenty-six of the code of the preceding municipality. This subdi- 23 vision shall not apply to alterations or improvements to any building or 24 structure which is benefitted by mortgage insurance pursuant to section 25 two hundred thirteen of the national housing act for applications filed 26 prior to January first, nineteen hundred seventy-nine. 27 t. Notwithstanding any law to the contrary, the owner of any building 28 or structure eligible for any of the benefits of this section which is 29 converted to a class A multiple dwelling, completed, or substantially 30 rehabilitated on or after January one, nineteen hundred seventy-four, 31 shall register the initial rent for each dwelling unit in such building 32 or structure with the New York state division of housing and community 33 renewal. After such registration, the rents of such dwelling units shall 34 be fully subject to regulations under chapter four of title twenty-six 35 of the code of the preceding municipality so long as the benefits of 36 this section are in effect or for such longer period as may be provided 37 by law. 38 u. Any tax exemption or tax abatement authorized pursuant to this 39 section may be revoked retroactively by the commissioner of department 40 of housing preservation and development or the department of finance at 41 any time during the authorized term of such tax exemption or tax abate- 42 ment if real estate taxes or water and sewer charges due to the city of 43 New York or city of Staten Island remain unpaid for one year after the 44 same are due and payable. In no event shall revocation be effective 45 prior to the date such taxes or charges were first due and payable. 46 v. Where alterations, improvements, or conversions include or benefit 47 that part of a building which is not occupied for dwelling purposes but 48 is occupied by stores or otherwise used for commercial purposes or 49 community facilities, the increase in assessed valuation and the cost of 50 the alteration shall be apportioned so that the benefits of this title 51 shall not be provided for alterations, improvements or conversions made 52 for other than dwelling purposes. 53 w. If any provision of this section or its application to any person 54 shall be held invalid, the remainder of this section and the applicabil- 55 ity of its provisions to other persons or circumstances shall not be 56 affected thereby.

S. 8578 203 1 x. Notwithstanding any provision of this section, no benefit pursuant 2 to paragraph four of subdivision b of this section shall be granted for 3 work commenced after January first, nineteen hundred eighty, unless the 4 applicant establishes that the department of housing preservation and 5 development and tenants of such class A multiple dwelling were given 6 notice of (i) the proposed work prior to commencement of such work, (ii) 7 the identity of the owner's representative, and (iii) the tenants' 8 rights under applicable law with respect to such work, provided that, in 9 the case of a loan program supervised by such department, notice to the 10 department shall be unnecessary, and further provided that the depart- 11 ment may itself provide the required notice to the tenants. 12 y. Applicants for benefits under the provisions of this section shall 13 file with the department of finance a form supplied by said department 14 which (i) states an intention to file for benefits under the provisions 15 of this section, (ii) describes the work for which tax benefits will be 16 claimed and (iii) estimates the cost of such work which will be eligible 17 for benefits. Such form shall be filed prior to the commencement of such 18 work. If the scope of such work or the estimated cost thereof changes 19 materially, applicant shall file a revised statement. Applicants who 20 fail to comply with the requirements of this subdivision shall be 21 subject to a penalty not to exceed one hundred percent of the filing fee 22 otherwise payable pursuant to subdivision n of this section. 23 z. A former tenant or former subtenant of premises in a non-residen- 24 tial building which is the subject of an application for an alteration 25 permit for conversion to a class A multiple dwelling, prior to the 26 application for any tax exemption or abatement benefits for such build- 27 ing pursuant to this section, and as a condition to the grant thereof, 28 shall be entitled to a relocation award under the terms and conditions 29 set forth below: 30 (1) As used in this subdivision, the term "eligible tenant" shall mean 31 any former tenant or former subtenant who: 32 (i) leased and used the vacated premises to conduct a manufacturing, 33 warehousing, or wholesaling business for not less than two consecutive 34 years immediately prior to vacating; 35 (ii) vacated such premises on or after April first, nineteen hundred 36 eighty-one for any reason other than eviction for non-payment of rent; 37 (iii) vacated such premises (a) no earlier than twenty-four months 38 prior to the filing date of an application for such alteration permit 39 and (b) no later than the completion of the conversion as evidenced by 40 the issuance of a permanent certificate of occupancy for a class A 41 multiple dwelling; 42 (iv) either purchased or leased for a term of not less than eighteen 43 months other premises within the city of Staten Island with a floor area 44 not less than one-third of the floor area of the vacated premises; 45 (v) relocated their business to such other premises within one year of 46 vacating the vacated premises; and 47 (vi) paid all commercial rent or occupancy tax for the vacated prem- 48 ises. A subtenant shall be eligible to receive a relocation award 49 notwithstanding any lack of eligibility of its prime tenant; 50 (2) the relocation award shall not exceed the greater of (i) the 51 aggregate base rent which accrued and was paid by the eligible tenant 52 during the final twenty-four months of its occupancy of the vacated 53 premises or (ii) four dollars for each square foot that the eligible 54 tenant occupied in the vacated premises during the final twenty-four 55 months of its occupancy of the vacated premises. As used in this subdi- 56 vision, base rent shall be calculated in the same manner as base rent is

S. 8578 204 1 calculated for purposes of commercial rent or occupancy tax in the city 2 of Staten Island. However, the aggregate award payable to a prime tenant 3 and/or any subtenants of such prime tenant shall not exceed the amount 4 which would have been payable to the prime tenant had the prime tenant 5 been eligible for an award based on the entire floor area it leased from 6 the owner; and if such limitation applies, the awards shall be prorated 7 based upon the total floor area used and occupied by each eligible 8 tenant; 9 (3) the relocation award shall become due and payable to an eligible 10 tenant at the time the eligible tenant (i) either purchases or leases 11 other premises in accordance with paragraph one of this subdivision, and 12 (ii) certifies eligibility to, and demands payment of, the award from 13 the owner of the vacated building. If the relocation award is not paid 14 within thirty days of such certification and demand, interest shall 15 accrue on the relocation award from the date of the certification and 16 demand at the rate of twenty-four percent per annum; 17 (4) at any time after such certification and demand and prior to the 18 date of the filing of an application for tax exemption or abatement for 19 the vacated building pursuant to this section, an eligible tenant who 20 has not received a relocation award shall have a right to file a notice 21 of claim. Such notice of claim shall be filed with the county clerk of 22 the county and shall verify the claimant's name, its compliance with 23 eligibility requirements, the address of the vacated premises, the floor 24 area it occupied, the name of the prime tenant if the claimant is a 25 subtenant, and all the base rent that accrued and was paid by the claim- 26 ant during the final twenty-four months of its occupancy; 27 (5) a notice of claim, filed in accordance with paragraph four of this 28 subdivision, may be discharged by the filing of an undertaking with the 29 county clerk in an amount equal to the amount claimed and in accordance 30 with the procedures set forth in subdivision four of section nineteen of 31 the lien law, or by the payment into court of such amount in accordance 32 with the procedures set forth in section fifty-five of such law; 33 (6) no tax exemption or abatement shall be granted pursuant to this 34 section unless the department of housing preservation and development 35 receives an affidavit from the applicant for benefits of this section 36 which verifies that: 37 (i) the applicant has caused to be published a notice in a newspaper 38 of general circulation within the city of Staten Island, no later than 39 sixty days prior to filing of an application for tax exemption or abate- 40 ment pursuant to this section, which advises former tenants and subten- 41 ants of their rights pursuant to this subdivision; and 42 (ii) no notice of claim has been filed or all claims have been 43 released by the claimants, or secured in accordance with the provisions 44 of paragraph five of this subdivision, or discharged as an improper 45 claim by court order; 46 (7) the affidavit required pursuant to the provisions of paragraph six 47 of this subdivision shall be considered part of the application for 48 benefits pursuant to this section; 49 (8) if an eligible tenant has duly filed a notice of claim pursuant to 50 paragraph four of this subdivision and did not receive a relocation 51 award as provided herein, it may commence an action against any appli- 52 cant who filed a false affidavit pursuant to paragraph six of this 53 subdivision or any security posted by such applicant pursuant to para- 54 graph five of this subdivision, within three years of such filing. In 55 any action to enforce a claim pursuant to this subdivision, if the court 56 finds that the claimant has wilfully exaggerated the amount of the

S. 8578 205 1 claim, the claimant may be held liable in damages for an amount not to 2 exceed the proper relocation award. An eligible tenant in whose favor a 3 judgment is entered shall be entitled to costs and reasonable legal fees 4 and disbursements provided that such judgment is in excess of the amount 5 which the applicant or owner offered to pay the eligible tenant; and 6 (9) any lease or other rental agreement provision exempting, waiving, 7 releasing or discharging the obligation to pay a relocation award pursu- 8 ant to this subdivision shall be void as against public policy and whol- 9 ly unenforceable. 10 aa. Harassment. (1) The provisions of this subdivision apply to and 11 are additional requirements for claiming or receiving: 12 (a) any tax exemption under this section; or 13 (b) any tax abatement under this section where the certified reason- 14 able cost per dwelling unit of the conversion, alteration or improvement 15 (including the cost of any conversion, alteration or improvement for 16 which an abatement was approved within four years prior to commencement 17 of the conversion, alteration or improvement) exceeds seven thousand 18 five hundred dollars. 19 (2) The owner of the property shall file with the department of hous- 20 ing preservation and development, not less than thirty days before the 21 commencement of the conversion, alteration or improvement (hereinafter 22 referred to as the "cut-off date"), an affidavit, or, where any informa- 23 tion referred to in paragraph one of this subdivision changes prior to 24 applying for or claiming any benefit under this section, an amending 25 affidavit, setting forth the following information: 26 (a) every owner of record and owner of a substantial interest in the 27 property or entity owning the property or sponsoring the conversion, 28 alteration or improvement; 29 (b) a statement that none of such persons had, within the five years 30 prior to the cut-off date, been found to have harassed or unlawfully 31 evicted tenants by judgment or determination of a court or agency 32 (including a non-governmental agency having appropriate legal jurisdic- 33 tion) under the penal law, any state or local law regulating rents or 34 any state or local law relating to harassment of tenants or unlawful 35 eviction; and 36 (c) any change in the information required to be set forth. 37 (3) No conversion, alteration or improvement subject to this subdivi- 38 sion shall be eligible for tax exemption or tax abatement under this 39 section where: 40 (a) any affidavit required under this subdivision has not been filed; 41 (b) any such affidavit contains a willful misrepresentation or omis- 42 sion of any material fact; or 43 (c) any person referred to in subparagraph (a) of paragraph two of 44 this subdivision has been found to have harassed or unlawfully evicted 45 tenants as described in that paragraph, until and unless the finding is 46 reversed on appeal, provided that any such finding after the cut-off 47 date shall not apply to or affect any tax abatement or exemption for the 48 conversion, alteration or improvement covered by the affidavit. 49 (4) The department of housing preservation and development and the 50 department of finance shall maintain a list of affidavits as described 51 in paragraph two of this subdivision. Each agency shall review that list 52 with respect to each application or claim for benefits subject to this 53 subdivision. 54 (5) "Substantial interest" as used in subparagraph (a) of paragraph 55 two of this subdivision shall mean ownership of an interest of ten per

S. 8578 206 1 centum or more in the property or entity owning the property or sponsor- 2 ing the conversion, alteration or improvement. 3 (6) Where the conversion, alteration or improvement is commenced 4 before August first, nineteen hundred eighty-three, the cut-off date 5 shall be as set forth in this subdivision, but no affidavit shall be 6 required to be filed until thirty days after the effective date of this 7 subdivision. 8 bb. Notwithstanding any contrary provision of the private housing 9 finance law, the benefits of this section shall apply to any limited 10 profit housing company as provided in this section. Such multiple dwell- 11 ing, building or structure shall be eligible for benefits where at least 12 one building-wide improvement or alteration is part of the application 13 for benefits. Furthermore, to the extent that such alterations or 14 improvements are financed with grants, loans or subsidies from any 15 federal, state, or local agency or instrumentality, such multiple dwell- 16 ing, building or structure shall be eligible for benefits only if the 17 limited profit housing company has entered into a binding and irrev- 18 ocable agreement with the commissioner of housing of the state of New 19 York, the supervising agency, as such term is defined in section two of 20 the private housing finance law, the New York city housing development 21 corporation, or the New York state housing finance agency prohibiting 22 the dissolution or reconstitution of such limited profit housing company 23 pursuant to section thirty-five of the private housing finance law for 24 not less than fifteen years from the commencement of benefits. The 25 abatement of taxes on such property, including the land, shall not be an 26 amount greater than ninety per centum of the certified reasonable cost 27 of such alterations or improvements, as determined under regulations of 28 the department of housing preservation and development, nor greater than 29 eight and one-third percent of such certified reasonable cost in any 30 twelve-month period, nor be effective for more than twenty years. The 31 annual abatement of taxes in any twelve-month period shall in no event 32 exceed fifty percent of the amount of taxes payable in such twelve-month 33 period pursuant to the applicable exemption granted pursuant to article 34 two of the private housing finance law or other applicable laws or fifty 35 percent of payments required to be made in lieu of taxes in such twelve- 36 month period. Provided, however, the annual abatement of taxes for 37 alterations or improvements commenced prior to June first, nineteen 38 hundred eighty-six may not be applied to reduce the amount of taxes 39 payable or the amount of payments required to be made in lieu of taxes 40 in any twelve-month period to an amount less than the minimum amount of 41 taxes required to be paid pursuant to section thirty-three of the 42 private housing finance law. 43 cc. The commissioner of the department of housing preservation and 44 development and the commissioner of the department of finance shall 45 prepare an annual report which shall be submitted to the Mayor and the 46 council on or before the first of July next succeeding the year to which 47 the report pertains, regarding the exemptions and abatements granted 48 pursuant to this section and shall include, but not be limited to the 49 following information: (i) the amount of real property tax that would 50 have been paid in the aggregate by the owners of real property granted 51 an exemption or abatement if the property were fully taxable and the 52 amount of tax actually paid in the aggregate by such owners, (ii) the 53 geographic distribution of exemptions and abatements granted pursuant to 54 this section, and (iii) a distribution by type of eligible categories as 55 delineated in paragraphs one through nine of subdivision b of this 56 section.

S. 8578 207 1 dd. Partial waiver of rent adjustments attributable to major capital 2 improvements. (1) The provisions of this subdivision apply to and are 3 additional requirements for claiming or receiving any tax abatement 4 under this section, except as provided in paragraphs three and four of 5 this subdivision. 6 (2) The owner of the property shall file with the department of hous- 7 ing preservation and development, on the date any application for bene- 8 fits is made, a declaration stating that in consideration of any tax 9 abatement benefits which may be received pursuant to such application 10 for alterations or improvements constituting a major capital improve- 11 ment, such owner agrees to waive the collection of a portion of the 12 total annual amount of any rent adjustment attributable to such major 13 capital improvement which may be granted by the New York state division 14 of housing and community renewal pursuant to the rent stabilization code 15 or its successor statute for the city of Staten Island equal to one-half 16 of the total annual amount of the tax abatement benefits which the prop- 17 erty receives pursuant to such application with respect to such alter- 18 ations or improvements. Such waiver shall commence on the date of the 19 first collection of such rent adjustment, provided that, in the event 20 that such tax abatement benefits were received prior to such first 21 collection, the amount waived shall be increased to account for such tax 22 abatement benefits so received. Following the expiration of a tax abate- 23 ment for alterations or improvements constituting a major capital 24 improvement for which a rent adjustment has been granted by such divi- 25 sion, the owner may collect the full amount of annual rent permitted 26 pursuant to such rent adjustment. A copy of such declaration shall be 27 filed simultaneously with the New York state division of housing and 28 community renewal. Such declaration shall be binding upon such owner, 29 and his or her successors and assigns. 30 (3) The provisions of this subdivision shall not apply to substantial 31 rehabilitation of buildings vacant when alterations or improvements are 32 commenced or to buildings rehabilitated with the substantial assistance 33 of city, state or federal subsidies. 34 (4) The provisions of this subdivision shall apply only to alterations 35 and improvements commenced after the effective date of such subdivision. 36 § 11-244 Tax exemption and abatement for rehabilitated buildings. a. 37 As used in this section, the following terms shall have the following 38 meanings: 39 1. "Eligible real property" shall mean: 40 (i) any class B multiple dwelling; 41 (ii) any class A multiple dwelling used for single room occupancy 42 pursuant to section two hundred forty-eight of the multiple dwelling law 43 which contains no more than twenty-five percent class A dwelling units 44 which contain lawful sanitary and kitchen facilities within the dwelling 45 unit, provided that in the case of a multiple dwelling containing ten 46 dwelling units or less, up to forty percent of the dwelling units may be 47 class A units; and 48 (iii) not-for-profit institutions with sleeping accommodations. 49 Notwithstanding the foregoing, eligible real property shall not 50 include college and school dormitories, club houses, or residences whose 51 occupancy is restricted to an institutional use such as housing intended 52 for use primarily or exclusively by the employees of a single company or 53 institution. A building is an eligible real property only if it quali- 54 fies as such after completion of the eligible improvements, but need not 55 have been an eligible real property prior to the eligible improvements.

S. 8578 208 1 2. "Eligible improvements" shall be limited to the following catego- 2 ries of work, provided further that such work shall be in conformity 3 with all applicable laws: 4 (i) replacement of a boiler or burner or installation of an entire new 5 heating system; 6 (ii) replacement or upgrading of electrical system; 7 (iii) replacement or upgrading of elevators; 8 (iv) installation or replacement or upgrading of the plumbing system, 9 including water main and risers; 10 (v) replacement or installation of walls, ceilings, floors or trim 11 where necessary; 12 (vi) replacement or upgrading of doors, installation of security 13 devices and systems; 14 (vii) installation, replacement or upgrading of smoke detectors, fire 15 alarms, fire escapes or sprinkler systems; 16 (viii) replacement or repair of roof, leaders and gutters; 17 (ix) replacement or installation of bathroom facilities; 18 (x) installation of wall and pipe insulation; 19 (xi) replacement or upgrading of street connections for water or sewer 20 services; 21 (xii) replacement or installation of windows, or installation of 22 window gates or guards; 23 (xiii) installation or replacement of boiler smoke stack; 24 (xiv) pointing, waterproofing and cleaning of entire building exterior 25 surface; 26 (xv) improvements designed to conserve the use of fuel, electricity or 27 other energy sources; 28 (xvi) work necessary to effect compliance with all applicable laws 29 including, but not limited to the multiple dwelling law, the city hous- 30 ing maintenance code or its successor statute for the city of Staten 31 Island and the building code; and 32 (xvii) improvements unique to congregate living facilities, as defined 33 by rules and regulations promulgated by the department of housing pres- 34 ervation and development. 35 3. "Existing dwelling" shall mean any eligible real property in exist- 36 ence prior to the commencement of eligible improvements, for which tax 37 exemption and abatement is claimed under the terms of this section and 38 for which a valuation appears on the annual record of assessed valuation 39 of the city for the fiscal year immediately preceding the commencement 40 of construction of such eligible improvements. 41 4. "Commencement of eligible improvement" shall mean the beginning of 42 any physical operation undertaken for the purpose of making eligible 43 improvements to eligible real property. 44 5. "Completion of eligible improvement" shall mean the conclusion or 45 termination of any physical operation referred to in the preceding para- 46 graph, to an extent or degree which renders an eligible property capable 47 of use for the purpose for which the improvements were intended. 48 6. "Permanent resident" shall mean a person who has resided in eligi- 49 ble real property for six months or more; has a lease or other rental 50 agreement for a term of six or more months; or has requested a lease 51 pursuant to the provisions of the rent stabilization code or its succes- 52 sor statute for the city of Staten Island for housing accommodations 53 located in hotels. 54 b. Any increase in the assessed valuation of eligible real property 55 shall be exempt from taxation for local purposes for a period of thir-

S. 8578 209 1 ty-two years to the extent such increase results from eligible improve- 2 ments, provided that: 3 (i) the eligible improvements are commenced after July first, nineteen 4 hundred eighty, and prior to the thirty-first of December in the year 5 next succeeding the effective date of this section, and are completed 6 within thirty-six months from commencement; 7 (ii) the department of housing preservation and development determines 8 and certifies the cost, qualification and eligibility of any improvement 9 for benefits of this section; 10 (iii) the exemption may commence no sooner than the July first follow- 11 ing the filing with the department of finance of a certification of 12 eligibility issued by the department of housing preservation and devel- 13 opment for benefits of this section; provided, however, that if the 14 rehabilitation is carried out with substantial government assistance as 15 part of a program for affordable housing the exemption may commence no 16 sooner than the July first following the commencement of construction of 17 eligible improvements; 18 (iv) immediately prior to, and during, the construction of eligible 19 improvements, not less than fifty percent of the dwelling units in such 20 eligible real property are occupied by permanent residents; provided 21 that such occupancy requirement shall not apply to a vacant, govern- 22 mentally owned multiple dwelling which had been vacant for not less than 23 two years prior to the commencement of construction of eligible improve- 24 ments, nor to a vacant multiple dwelling where the eligible improvements 25 are carried out with the substantial assistance of grants, loans or 26 subsidies from any federal, state or local agency or instrumentality or 27 any not-for-profit philanthropic organization one of whose primary 28 purposes is providing low or moderate income housing; 29 (v) no outstanding real estate taxes, water and sewer charges, 30 payments in lieu of taxes or other municipal charges are due and owing 31 as of the tax quarter immediately preceding the commencement of tax 32 exemption pursuant to this section; provided that an applicant aided 33 pursuant to the provisions of the private housing finance law shall have 34 such application accepted by the tax commission if there are no 35 outstanding real estate, water and sewer taxes due and owing as of the 36 last day of the tax quarter preceding commencement of construction of 37 eligible improvements; 38 (vi) except in the case of eligible real property which is receiving 39 or has received assistance pursuant to a governmental rent subsidy 40 program or which is owned by a not-for-profit corporation or by a wholly 41 owned subsidiary of a not-for-profit corporation and which is receiving 42 or has received assistance pursuant to a governmental loan subsidy 43 program, as defined by the rules and regulations promulgated by the 44 department of housing preservation and development, for the construction 45 of eligible improvements, the initial rent after completion of eligible 46 improvements, for ninety percent of the total number of dwelling units 47 occupied by permanent residents in a class A or class B multiple dwell- 48 ing other than apartments shall not exceed the greater of either the 49 amount of any governmental rental assistance received by an occupant or 50 seventy-five percent of the rent which is permitted to be charged for 51 zero-bedroom units on the moderate rehabilitation fair market rent sche- 52 dule as determined by the United States department of housing and urban 53 development for the housing assistance payments program under section 54 eight of the national housing act; 55 (vii) no person residing in eligible real property prior to or during 56 the construction of eligible improvements shall be required by the owner

S. 8578 210 1 to vacate the eligible real property solely in order to perform the 2 eligible improvements or any related work. 3 c. Eligible real property which qualifies for exemption from taxation 4 for local purposes for eligible improvements shall also be eligible for 5 an annual abatement of real property taxes in an amount not to exceed 6 twelve and one-half percent of the reasonable cost of eligible improve- 7 ments certified by the department of housing preservation and develop- 8 ment, which abatement may commence on the first day of the first tax 9 quarter following the filing with the department of finance of a certif- 10 ication of eligibility issued by the department of housing preservation 11 and development for benefits of this section; provided, however, that if 12 the rehabilitation is carried out with substantial government assistance 13 as part of a program for affordable housing the abatement may commence 14 no sooner than the first day of the first tax quarter following the 15 commencement of construction of eligible improvements, provided further 16 that: 17 (i) the annual abatement shall not exceed the amount of taxes other- 18 wise payable in the corresponding year; 19 (ii) the period during which such abatement is effective shall not 20 exceed twenty consecutive years from the date such abatement first 21 becomes effective; and 22 (iii) the total abatement shall not exceed the lesser of one hundred 23 fifty percent of the certified reasonable costs of eligible improvements 24 or the actual costs as determined by the department of housing preserva- 25 tion and development pursuant to its rules and regulations. 26 d. During the period of tax exemption or abatement pursuant to this 27 section, each of the following shall be a condition precedent to the 28 continuation of the exemption and/or abatement: 29 (i) compliance with all applicable provisions of law, including, but 30 not limited to the multiple dwelling law, the building code and the 31 housing maintenance code of the preceding municipality; 32 (ii) all dwelling units, except owner occupied units, shall be subject 33 to the emergency housing rent control law or the local housing rent 34 control act or the tenant protection act of nineteen hundred seventy- 35 four, or any local laws enacted pursuant thereto or the rent stabiliza- 36 tion law of nineteen hundred sixty-nine or their successor statutes for 37 the city of Staten Island; provided, however, that the department of 38 housing preservation and development may exempt from this requirement 39 dwelling units that are not occupied by permanent residents in those 40 buildings owned by a not-for-profit corporation and which are improved 41 with the aid of a rehabilitation loan from any government agency or 42 instrumentality or operated pursuant to a contract with a governmental 43 entity. 44 (iii) eligible real property receiving tax exemption or tax abatement 45 benefits under this section shall not receive tax exemption or tax 46 abatement for new construction or rehabilitation under any other 47 provision of law; 48 (iv) the eligible improvements shall not be used as the basis for any 49 application for rent increases and the owner shall file a statement to 50 such effect with the department of housing preservation and development 51 and with any appropriate rent regulatory agency, provided, however, that 52 rents of units improved with the aid of a rehabilitation loan from any 53 governmental agency or instrumentality may within the limitations estab- 54 lished by this section be increased pursuant to the rules and regu- 55 lations of the department of housing preservation and development; and

S. 8578 211 1 (v) a minimum of seventy-five percent of the dwelling units shall be 2 rental units occupied by permanent residents; provided, however that the 3 department of housing preservation and development may exempt from this 4 requirement those buildings improved with the aid of a rehabilitation 5 loan from any governmental agency or instrumentality or operated pursu- 6 ant to a contract with a governmental entity. 7 e. During the period of tax exemption or abatement pursuant to this 8 section, the owner shall submit an annual certification to the depart- 9 ment of housing preservation and development in the form prescribed by 10 such department. Failure to submit such certification in any given year 11 may result in the revocation of benefits. The certification shall 12 include the following: 13 (i) the total number of dwelling units within the eligible real prop- 14 erty and the total number of dwelling units occupied by permanent resi- 15 dents; 16 (ii) the number of dwelling units subject to the provisions of the 17 emergency housing rent control act, the emergency tenant protection act 18 of nineteen seventy-four or any local laws enacted pursuant thereto; the 19 emergency housing rent control law or the rent stabilization law of 20 nineteen hundred sixty-nine or their successor statutes applicable to 21 the city of Staten Island; and 22 (iii) all such other information required by the department of housing 23 preservation and development. 24 f. Any tax exemption or tax abatement authorized pursuant to this 25 section may be revoked or reduced by the department of housing preserva- 26 tion and development or by the department of finance at any time during 27 the authorized term of such tax exemption or tax abatement upon a find- 28 ing by either department that: 29 (i) the application for benefits pursuant to this section or the annu- 30 al certification required hereunder contains a false statement or false 31 information as to a material matter, or omits a material matter, in 32 which case the revocation or reduction may be retroactive to the 33 commencement of benefits pursuant to this section; 34 (ii) real estate taxes, water, sewer or other municipal charges, or 35 payments in lieu of said taxes or charges are, and have remained, due 36 and owing for more than one year, in which case the revocation or 37 reduction may be retroactive to the commencement of benefits pursuant to 38 this section, provided that in no event shall revocation be effective 39 prior to the date such taxes or charges were first due and payable; or 40 (iii) the eligible real property fails to comply with one or more of 41 the provisions or requirements of this section. 42 g. Application forms for the benefits of this section shall be filed 43 with the tax commission within the time periods to be established by 44 rules and regulations promulgated by the department of housing preserva- 45 tion and development, pursuant to subdivision i of this section. The tax 46 commission shall certify to the department of finance the amount of 47 taxes to be abated, pursuant to the certification of the department of 48 housing preservation and development as herein provided. No such appli- 49 cation shall be accepted unless accompanied by a copy of the certificate 50 of the department of housing preservation and development both as to 51 reasonable cost and as to eligibility as provided in subdivision b of 52 this section. 53 h. No owner of a dwelling to which the benefits of this section apply, 54 nor any agent, employee, manager or officer of such owner shall directly 55 or indirectly deny to any person because of race, color, creed, national 56 origin, sex, disability, marital status, age, religion, military status,

S. 8578 212 1 gender identity or expression or sexual orientation any of the dwelling 2 accommodations in such property or any of the privileges or services 3 incident to occupancy therein. The term "disability" as used in this 4 subdivision shall mean a physical, mental or medical impairment result- 5 ing from anatomical, physiological, or neurological conditions which 6 prevents the exercise of a normal bodily function or is demonstrable by 7 medically accepted clinical or laboratory diagnostic techniques. Nothing 8 in this subdivision shall restrict such consideration in the availabili- 9 ty of housing accommodations for the purpose of providing for the 10 special needs of a particular group. 11 i. The department of housing preservation and development shall deter- 12 mine and certify the reasonable cost of any such conversions, alter- 13 ations or improvements and eligibility for the benefits of this section 14 and for that purpose may adopt rules and regulations, administer oaths 15 to and take the testimony of any person, including, but not limited to 16 the owner of such property, may issue subpoenas requiring the attendance 17 of such persons and the production of such bills, books, papers or other 18 documents as it shall deem necessary, may make preliminary estimates of 19 the maximum reasonable cost of such conversions, alterations or improve- 20 ments, may establish maximum allowable costs of specified units, 21 fixtures or work in such conversions, alterations or improvements, and 22 may require the submission of plans and specifications of such conver- 23 sions, alterations or improvements before the start thereof. Applica- 24 tions for certification shall include all bills and other documents 25 showing the cost of construction or such other evidence of such cost as 26 shall be satisfactory to the department of housing preservation and 27 development, including, without limitation, certification of cost by a 28 certified public accountant in accordance with generally accepted 29 accounting principles. Each additional agency to which functions are 30 assigned by this section may adopt and promulgate rules and regulations 31 for the effectuation of the purposes of this section. 32 j. The department of housing preservation and development may require 33 a filing fee in an amount as provided by the rules and regulations 34 promulgated by the department of housing preservation and development 35 pursuant to subdivision i of this section. 36 k. Any person who shall knowingly and wilfully make any false state- 37 ments as to any material matter in any application for the benefits of 38 this section shall be guilty of an offense punishable by a fine of not 39 more than five hundred dollars or imprisonment for not more than ninety 40 days, or both. 41 l. If any provision of this section or its application to any person 42 shall be held invalid, the remainder of this section and the applicabil- 43 ity of its provisions to other persons or circumstances shall not be 44 affected thereby. 45 § 11-245.1 Site eligibility limitations on benefits pursuant to 46 section four hundred twenty-one-a of the real property tax law. 47 (a) Where eligibility for benefits under section four hundred twenty- 48 one-a of the real property tax law is sought for any construction 49 commenced on or after November twenty-ninth, nineteen hundred eighty- 50 five and before May twelfth, two thousand on the basis that such 51 construction shall take place on land which, on the date thirty-six 52 months prior to the commencement of such construction, was improved with 53 a nonresidential building or buildings and was under-utilized, the 54 under-utilization of the land must have been such that each building or 55 buildings:

S. 8578 213 1 (1) contained no more than the permissible floor area ratio for 2 nonresidential buildings in the zoning district in question and a 3 floor area ratio which was twenty percent or less of the maximum 4 floor area ratio for residential buildings, 5 (2) had an assessed valuation equal to or less than twenty percent 6 of the assessed valuation of the land on which the building or 7 buildings were situated, or 8 (3) by reason of the configuration of the building, or substantial 9 structural defects not brought about by deferred maintenance prac- 10 tices or intentional conduct, could no longer be functionally or 11 economically utilized in the capacity in which it was formerly 12 utilized. 13 For purposes of this subdivision and subdivisions (a-1) through (a-4) 14 of this section, construction shall be deemed to have commenced on the 15 date immediately following the issuance by the department of buildings 16 of a new building permit for an entire new building (based upon archi- 17 tectural, plumbing and structural plans approved by such department) on 18 which the excavation and the construction of initial footings and foun- 19 dations commences in good faith, on vacant land and for the entire 20 project site, as certified by an architect or professional engineer 21 licensed in the state, provided that installation of footings and foun- 22 dations is similarly certified by such architect or engineer to have 23 been completed without undue delay. 24 (a-1) Except as provided in subdivision (a-2) of this section, where 25 eligibility for benefits under section four hundred twenty-one-a of the 26 real property tax law is sought for any construction commenced on or 27 after May twelfth, two thousand and before the effective date of subdi- 28 visions (a-3) and (a-4) of this section on the basis that such 29 construction shall take place on land which, on the date thirty-six 30 months prior to the commencement of such construction, was improved with 31 a nonresidential building or buildings and was under-utilized, the 32 under-utilization of the land must have been such that each building or 33 buildings: 34 (1) contained no more than the permissible floor area ratio for 35 nonresidential buildings in the zoning district in question and a 36 floor area ratio which was seventy-five percent or less of the maxi- 37 mum floor area ratio for residential buildings, 38 (2) had an assessed valuation equal to or less than seventy-five 39 percent of the assessed valuation of the land on which the building 40 or buildings were situated, or 41 (3) by reason of the configuration of the building, or substantial 42 structural defects not brought about by deferred maintenance prac- 43 tices or intentional conduct, could no longer be functionally or 44 economically utilized in the capacity in which it was formerly 45 utilized. 46 For purposes of this subdivision, construction shall be deemed to have 47 commenced as provided in subdivision (a) of this section. 48 (a-2) Where eligibility for benefits under section four hundred twen- 49 ty-one-a of the real property tax law is sought for any construction on 50 any tax lot now existing or hereafter created which is located south of 51 or adjacent to either side of one hundred tenth street in the borough of 52 Manhattan which construction commenced on or after May twelfth, two 53 thousand and before the effective date of subdivisions (a-3) and (a-4) 54 of this section on the basis that such construction shall take place on 55 land which, on the date thirty-six months prior to the commencement of 56 such construction, was improved with a nonresidential building or build-

S. 8578 214 1 ings and was under-utilized, the under-utilization of the land must have 2 been such that each building or buildings: 3 (1) contained no more than the permissible floor area ratio for 4 nonresidential buildings in the zoning district in question and a 5 floor area ratio which was fifty percent or less of the maximum 6 floor area ratio for residential buildings, 7 (2) had an assessed valuation equal to or less than fifty percent of 8 the assessed valuation of the land on which the building or build- 9 ings were situated, or 10 (3) by reason of the configuration of the building, or substantial 11 structural defects not brought about by deferred maintenance prac- 12 tices or intentional conduct, could no longer be functionally or 13 economically utilized in the capacity in which it was formerly 14 utilized. 15 For purposes of this subdivision, construction shall be deemed to have 16 commenced as provided in subdivision (a) of this section. 17 (a-3) Except as provided in subdivision (a-4) of this section, where 18 eligibility for benefits under section four hundred twenty-one-a of the 19 real property tax law is sought for any construction commenced on or 20 after the effective date of this subdivision on the basis that such 21 construction shall take place on land which, on the date thirty-six 22 months prior to the commencement of such construction, was improved with 23 a nonresidential building or buildings and was under-utilized, the 24 under-utilization of the land must have been such that each building or 25 buildings: 26 (1) contained no more than the permissible floor area ratio for 27 nonresidential buildings in the zoning district in question and 28 either (i) had a floor area ratio which was seventy-five percent or 29 less of the maximum floor area ratio for residential buildings in 30 such zoning district, or (ii) if the land was not zoned to permit 31 residential use on the date thirty-six months prior to the commence- 32 ment of construction, had a floor area ratio which was seventy-five 33 percent or less of the floor area ratio of the residential building 34 which replaces such non-residential building, 35 (2) had an assessed valuation equal to or less than seventy-five 36 percent of the assessed valuation of the land on which the building 37 or buildings were situated, or 38 (3) by reason of the configuration of the building, or substantial 39 structural defects not brought about by deferred maintenance prac- 40 tices or intentional conduct, could no longer be functionally or 41 economically utilized in the capacity in which it was formerly 42 utilized. 43 For purposes of this subdivision, construction shall be deemed to have 44 commenced as provided in subdivision (a) of this section. 45 (a-4) Where eligibility for benefits under section four hundred twen- 46 ty-one-a of the real property tax law is sought for any construction on 47 any tax lot now existing or hereafter created which is located south of 48 or adjacent to either side of one hundred tenth street in the borough of 49 Manhattan which construction commenced on or after the effective date of 50 this subdivision on the basis that such construction shall take place on 51 land which, on the date thirty-six months prior to the commencement of 52 such construction, was improved with a nonresidential building or build- 53 ings and was under-utilized, the under-utilization of the land must have 54 been such that each building or buildings: 55 (1) contained no more than the permissible floor area ratio for 56 nonresidential buildings in the zoning district in question and

S. 8578 215 1 either (i) had a floor area ratio which was fifty percent or less of 2 the maximum floor area ratio for residential buildings in such 3 zoning district, or (ii) if the land was not zoned to permit resi- 4 dential use on the date thirty-six months prior to the commencement 5 of construction, had a floor area ratio which was fifty percent or 6 less of the floor area ratio of the residential building which 7 replaces such non-residential building, 8 (2) had an assessed valuation equal to or less than fifty percent of 9 the assessed valuation of the land on which the building or build- 10 ings were situated, or 11 (3) by reason of the configuration of the building, or substantial 12 structural defects not brought about by deferred maintenance prac- 13 tices or intentional conduct, could no longer be functionally or 14 economically utilized in the capacity in which it was formerly 15 utilized. 16 For purposes of this subdivision, construction shall be deemed to have 17 commenced as provided in subdivision (a) of this section. 18 (b) The department of housing preservation and development may promul- 19 gate rules and regulations for the effectuation of the purposes of this 20 section. 21 (c) The limitations on benefits contained in this section shall be in 22 addition to those contained in any other law or regulation. 23 § 11-245.1-a Boundary review commission. (a) There shall be estab- 24 lished a boundary review commission consisting of eleven members, 25 including the commissioner of finance, the commissioner of housing pres- 26 ervation and development, the commissioner of buildings, the chairperson 27 of the department of city planning, the director of the office of 28 management and budget, the executive director of the board of standards 29 and appeals and five members chosen by the speaker of the council. The 30 appointees of the speaker of the council shall serve at the pleasure of 31 the speaker. The commission shall elect a chairperson from among its 32 members. 33 (b) The boundary review commission shall undertake a biennial review 34 of the tax benefit program established pursuant to section four hundred 35 twenty-one-a of the real property tax law to determine whether the areas 36 for which the tax benefits are restricted pursuant to those provisions 37 of the administrative code which relate to such program should be 38 revised in any manner. 39 (c) In conducting a review to determine whether geographic exclusion 40 zones restricting benefits provided pursuant to section four hundred 41 twenty-one-a of the real property tax law should be revised, the commis- 42 sion shall review measurers of housing activity and housing market 43 conditions throughout the city including (i) the amount of new develop- 44 ment; (ii) values in land sales, residential sales prices and rents; 45 (iii) trends in land sales, residential sales prices and rents and other 46 development trend data including land use trends, lot consolidation and 47 board of standards and appeals actions; (iv) development potential; (v) 48 relationship between volume of potential development and existing hous- 49 ing; and (vi) financial feasibility of development with and without the 50 benefits provided pursuant to section four hundred twenty-one-a of the 51 real property tax law. 52 (d) On or before December first of each even numbered year following 53 the effective date of this section, such commission shall submit a 54 report to the speaker of the council and the mayor on its deliberations 55 and shall include recommendations for revisions to such boundaries that 56 it deems appropriate or why no revisions were recommended, including the

S. 8578 216 1 methodology by which it applied the criteria in subdivision (c) of this 2 section to arrive at its recommendations, and all data used to make such 3 recommendations. Any recommendations shall be consistent with the 4 provisions of section four hundred twenty-one-a of the real property tax 5 law. 6 § 11-245.1-b Limitations on benefits pursuant to section four hundred 7 twenty-one-a of the real property tax law. (a) As used in this section, 8 the following terms shall have the following meanings: 9 (1) "Residential tax lot" shall mean a tax lot that contains dwelling 10 units. 11 (2) "Non-residential tax lot" shall mean a tax lot that does not 12 contain any dwelling units. 13 (3) "Annual limit" shall mean sixty-five thousand dollars, which 14 amount shall be increased by three percent, compounded annually, on each 15 taxable status date following the first anniversary of the effective 16 date of the local law that added this section. 17 (4) "Certificate of occupancy" shall mean the first certificate of 18 occupancy covering all residential areas of the building on or contain- 19 ing a tax lot. 20 (5) "Unit count" shall mean (i) in the case of a residential tax lot 21 that does not contain any commercial, community facility or accessory 22 use space, the number of dwelling units in such tax lot, and (ii) in the 23 case of a residential tax lot that contains commercial, community facil- 24 ity or accessory use space, the number of dwelling units in such tax lot 25 plus one. 26 (6) "Exemption cap" shall mean the unit count multiplied by the annual 27 limit. 28 (b) The provisions of this section shall apply only to projects that 29 commence construction on or after the effective date of this section. 30 (c) No benefits under section four hundred twenty-one-a of the real 31 property tax law shall be conferred for any multiple dwelling containing 32 fewer than four dwelling units, as set forth in the certificate of occu- 33 pancy, unless the construction of such multiple dwelling is carried out 34 with substantial assistance of grants, loans or subsidies from any 35 federal, state or local agency or instrumentality where such assistance 36 is provided pursuant to a program for the development of affordable 37 housing. 38 (d) The portion of the assessed valuation of any residential tax lot 39 exempted from real property taxation in any year pursuant to section 40 four hundred twenty-one-a of the real property tax law shall not exceed 41 the exemption cap on or after the first taxable status date after the 42 building on or containing such tax lot receives its certificate of occu- 43 pancy unless, in accordance with a regulatory agreement with or approved 44 by the department of housing preservation and development that is appli- 45 cable to such tax lot, (1) the construction of such building is carried 46 out with substantial assistance of grants, loans or subsidies from any 47 federal, state or local agency or instrumentality and such assistance is 48 provided pursuant to a program for the development of affordable hous- 49 ing, or (2) the department of housing preservation and development has 50 imposed a requirement or has certified that twenty per cent of the units 51 be restricted income units. All such restricted income units must be 52 situated onsite. For the purposes of this section, "onsite" shall mean 53 that restricted income units shall be situated within the building or 54 buildings for which benefits pursuant to section four hundred twenty- 55 one-a of the real property tax law are being granted. A dwelling unit 56 that is located in two or more tax lots shall be ineligible to receive

S. 8578 217 1 any benefits under section four hundred twenty-one-a of the real proper- 2 ty tax law. The portion of the assessed valuation of all non-residential 3 tax lots in the building on or containing such non-residential tax lots 4 exempted from real property taxation in any year pursuant to section 5 four hundred twenty-one-a of the real property tax law shall not exceed 6 a cumulative total equal to the annual limit on or after the first taxa- 7 ble status date after the building on or containing such non-residential 8 tax lots receives its certificate of occupancy. 9 (e) A new multiple dwelling that is situated in (1) a neighborhood 10 preservation program area as determined by the department of housing 11 preservation and development as of June first, nineteen hundred eighty- 12 five, (2) a neighborhood preservation area as determined by the New York 13 city planning commission as of June first, nineteen hundred eighty-five, 14 (3) an area that was eligible for mortgage insurance provided by the 15 rehabilitation mortgage insurance corporation as of May first, nineteen 16 hundred ninety-two, or (4) an area receiving funding for a neighborhood 17 preservation project pursuant to the neighborhood reinvestment corpo- 18 ration act (42 U.S.C. §§ 8101 et seq.) as of June first, nineteen 19 hundred eighty-five, shall only be eligible for the benefits available 20 pursuant to subparagraph (iii) of paragraph (a) of subdivision two of 21 section four hundred twenty-one-a of the real property tax law if: 22 a. the construction is carried out with substantial assistance of 23 grants, loans or subsidies from any federal, state or local agency or 24 instrumentality and such assistance is provided pursuant to a program 25 for the development of affordable housing, or 26 b. the department of housing preservation and development has imposed 27 a requirement or has certified that twenty percent of the units be 28 restricted income units. All such restricted income units must be situ- 29 ated onsite. 30 (f) The department of housing preservation and development may promul- 31 gate rules and regulations to effectuate the purposes of this section. 32 (g) The limitations on eligibility for benefits contained in this 33 section shall be in addition to those contained in any other law, rule 34 or regulation. 35 (h) Notwithstanding anything to the contrary contained herein, the 36 limitations on eligibility for benefits contained in this section shall 37 not apply to a covered project as defined in subparagraph (i) of para- 38 graph a of subdivision six of section four hundred twenty-one-a of the 39 real property tax law. 40 § 11-245.2 Exemption for real property of certain water-works corpo- 41 rations. Real property owned by a water-works corporation subject to the 42 provisions of the public service law and used exclusively for the sale, 43 furnishing and distribution of water for domestic, commercial and public 44 purposes, shall not be taxable. 45 § 11-245.3 Exemption for persons sixty-five years of age or over. 1. 46 Real property owned by one or more persons, each of whom is sixty-five 47 years of age or over, or real property owned by husband and wife or by 48 siblings, one of whom is sixty-five years of age or over, or real prop- 49 erty owned by one or more persons, some of whom qualify under this 50 section and section 11-245.4 of this part shall be exempt from taxes on 51 real estate to the extent of fifty per centum of the assessed valuation 52 thereof. For the purposes of this section, siblings shall mean a brother 53 or a sister, whether related through halfblood, whole blood or adoption. 54 2. Exemption from taxation for school purposes shall not be granted in 55 the case of real property where a child resides if such child attends a 56 public school of elementary or secondary education.

S. 8578 218 1 3. No exemption shall be granted: 2 (a) if the income of the owner or the combined income of the owners of 3 the property exceeds the sum of twenty-six thousand dollars beginning 4 July first, two thousand six, twenty-seven thousand dollars beginning 5 July first, two thousand seven, twenty-eight thousand dollars beginning 6 July first, two thousand eight, twenty-nine thousand dollars beginning 7 July first, two thousand nine, and fifty thousand dollars beginning July 8 first, two thousand seventeen for the income tax year immediately 9 preceding the date of making application for exemption. Income tax year 10 shall mean the twelve-month period for which the owner or owners filed a 11 federal personal income tax return, or if no such return is filed, the 12 calendar year. Where title is vested in either the husband or the wife, 13 their combined income may not exceed such sum, except where the husband 14 or wife, or ex-husband or ex-wife is absent from the property as 15 provided in subparagraph (ii) of paragraph (d) of this subdivision, then 16 only the income of the spouse or ex-spouse residing on the property 17 shall be considered and may not exceed such sum. Such income shall 18 include social security and retirement benefits, interest, dividends, 19 total gain from the sale or exchange of a capital asset which may be 20 offset by a loss from the sale or exchange of a capital asset in the 21 same income tax year, net rental income, salary or earnings, and net 22 income from self-employment, but shall not include gifts, inheritances, 23 a return of capital, payments made to individuals because of their 24 status as victims of Nazi persecution as defined in P.L. 103-286, monies 25 earned through employment in the federal foster grandparent program, and 26 veterans disability compensation as defined in title 38 of the United 27 States Code, and any such income shall be offset by all medical and 28 prescription drug expenses actually paid which were not reimbursed or 29 paid for by insurance. In computing net rental income and net income 30 from self-employment no depreciation deduction shall be allowed for the 31 exhaustion, wear and tear of real or personal property held for the 32 production of income. 33 (b) unless the title of the property shall have been vested in the 34 owner or one of the owners of the property for at least twelve consec- 35 utive months prior to the date of making application for exemption, 36 provided, however, that in the event of the death of either husband or 37 wife in whose name title of the property shall have been vested at the 38 time of death and then becomes vested solely in the survivor by virtue 39 of devise by or descent from the deceased husband or wife, the time of 40 ownership of the property by the deceased husband or wife shall be 41 deemed also a time of ownership by the survivor and such ownership shall 42 be deemed continuous for the purposes of computing such period of twelve 43 consecutive months, and provided further, that in the event of a trans- 44 fer by either husband or wife to the other spouse of all or part of the 45 title to the property, the time of ownership of the property by the 46 transferer spouse shall be deemed also a time of ownership by the trans- 47 feree spouse and such ownership shall be deemed continuous for the 48 purposes of computing such period of twelve consecutive months, and 49 provided further, that where property of the owner or owners has been 50 acquired to replace property formerly owned by such owner or owners and 51 taken by eminent domain or other involuntary proceeding, except a tax 52 sale, and where a residence is sold and replaced with another within one 53 year and both are within the state, the period of ownership of the 54 former property shall be combined with the period of ownership of the 55 property for which application is made for exemption and such periods of 56 ownership shall be deemed to be consecutive for purposes of this

S. 8578 219 1 section. Where the owner or owners transfer title to property which as 2 of the date of transfer was exempt from taxation under the provisions of 3 this section, the reacquisition of title by such owner or owners within 4 nine months of the date of transfer shall be deemed to satisfy the 5 requirement of this paragraph that the title of the property shall have 6 been vested in the owner or one of the owners for such period of twelve 7 consecutive months. Where, upon or subsequent to the death of an owner 8 or owners, title to property which as of the date of such death was 9 exempt from taxation under such provisions, becomes vested, by virtue of 10 devise or descent from the deceased owner or owners, or by transfer by 11 any other means within nine months after such death, solely in a person 12 or persons who, at the time of such death, maintained such property as a 13 primary residence, the requirement of this paragraph that the title of 14 the property shall have been vested in the owner or one of the owners 15 for such period of twelve consecutive months shall be deemed satisfied; 16 (c) unless the property is used exclusively for residential purposes, 17 provided, however, that in the event any portion of such property is not 18 so used exclusively for residential purposes but is used for other 19 purposes, such portion shall be subject to taxation and the remaining 20 portion only shall be entitled to the exemption provided by this 21 section; 22 (d) unless the property is the legal residence of and is occupied in 23 whole or in part by the owner or by all of the owners of the property; 24 except where, (i) an owner is absent from the residence while receiving 25 health-related care as an inpatient of a residential health care facili- 26 ty, as defined in section twenty-eight hundred one of the public health 27 law, provided that any income accruing to that person shall be income 28 only to the extent that it exceeds the amount paid by such owner, 29 spouse, or co-owner for care in the facility, and provided further, that 30 during such confinement such property is not occupied by other than the 31 spouse or co-owner of such owner; or, (ii) the real property is owned by 32 a husband and/or wife, or an ex-husband and/or an ex-wife, and either is 33 absent from the residence due to divorce, legal separation or abandon- 34 ment and all other provisions of this section are met provided that 35 where an exemption was previously granted when both resided on the prop- 36 erty, then the person remaining on the real property shall be sixty-two 37 years of age or over. 38 4. Application for such exemption must be made by the owner, or all of 39 the owners of the property, on forms prescribed by the state board to be 40 furnished by the department of finance and shall furnish the information 41 and must be executed in the manner required or prescribed in such form 42 and shall be filed in the department of finance in the borough in which 43 the real property is located between the fifteenth day of January and 44 the fifteenth day of March. Notwithstanding any other provision of law, 45 any person otherwise qualifying under this section shall not be denied 46 the exemption under this section if he or she becomes sixty-five years 47 of age after the taxable status date and on or before December thirty- 48 first of the same year. 49 5. At least sixty days prior to the fifteenth day of January the 50 department of finance shall mail to each person who was granted 51 exemption pursuant to this section on the latest completed assessment 52 roll an application form and a notice that such application must be 53 filed between the fifteenth day of January and the fifteenth day of 54 March every two years from the year in which such exemption was granted 55 and be approved in order for the exemption to be granted. The department 56 of finance shall, within three days of the completion and filing of the

S. 8578 220 1 tentative assessment roll, notify by mail any applicant who has included 2 with his application at least one self-addressed, prepaid envelope, of 3 the approval or denial of the application; provided, however, where an 4 applicant has included two such envelopes, the department of finance 5 shall, upon the filing of the application, send by mail, notice of 6 receipt of that application. Where an applicant is entitled to notice of 7 denial provided herein, such notice shall state the reasons for such 8 denial and shall further state that such determination is reviewable in 9 a manner provided by law. Failure to mail any such application form or 10 notices or the failure of such person to receive any or all of the same 11 shall not prevent the levy, collection and enforcement of the payment of 12 the taxes on property owned by such person. 13 6. Any conviction of having made any willful false statement in the 14 application for such exemption shall be punishable by a fine of not more 15 than one hundred dollars and shall disqualify the applicant or appli- 16 cants from further exemption for a period of five years. 17 7. Notwithstanding the maximum income exemption eligibility level 18 provided in subdivision three of this section, an exemption, subject to 19 all other provisions of this section, shall be granted as indicated in 20 the following schedule: 21 Annual Income Percentage Assessed Valuation 22 as of July 1, 2006 Exempt From Taxation 23 More than $26,000 but less than $27,000 45 per centum 24 $27,000 or more but less than $28,000 40 per centum 25 $28,000 or more but less than $29,000 35 per centum 26 $29,000 or more but less than $29,900 30 per centum 27 $29,900 or more but less than $30,800 25 per centum 28 $30,800 or more but less than $31,700 20 per centum 29 $31,700 or more but less than $32,600 15 per centum 30 $32,600 or more but less than $33,500 10 per centum 31 $33,500 or more but less than $34,400 5 per centum 32 Percentage Assessed Valuation 33 Annual Income as of July 1, 2007 Exempt From Taxation 34 More than $27,000 but less than $28,000 45 per centum 35 $28,000 or more but less than $29,000 40 per centum 36 $29,000 or more but less than $30,000 35 per centum 37 $30,000 or more but less than $30,900 30 per centum 38 $30,900 or more but less than $31,800 25 per centum 39 $31,800 or more but less than $32,700 20 per centum 40 $32,700 or more but less than $33,600 15 per centum 41 $33,600 or more but less than $34,500 10 per centum 42 $34,500 or more but less than $35,400 5 per centum 43 Percentage Assessed Valuation 44 Annual Income as of July 1, 2008 Exempt From Taxation 45 More than $28,000 but less than $29,000 45 per centum 46 $29,000 or more but less than $30,000 40 per centum 47 $30,000 or more but less than $31,000 35 per centum 48 $31,000 or more but less than $31,900 30 per centum 49 $31,900 or more but less than $32,800 25 per centum 50 $32,800 or more but less than $33,700 20 per centum

S. 8578 221 1 $33,700 or more but less than $34,600 15 per centum 2 $34,600 or more but less than $35,500 10 per centum 3 $35,500 or more but less than $36,400 5 per centum 4 Percentage Assessed Valuation 5 Annual Income as of July 1, 2009 Exempt From Taxation 6 More than $29,000 but less than $30,000 45 per centum 7 $30,000 or more but less than $31,000 40 per centum 8 $31,000 or more but less than $32,000 35 per centum 9 $32,000 or more but less than $32,900 30 per centum 10 $32,900 or more but less than $33,800 25 per centum 11 $33,800 or more but less than $34,700 20 per centum 12 $34,700 or more but less than $35,600 15 per centum 13 $35,600 or more but less than $36,500 10 per centum 14 $36,500 or more but less than $37,400 5 per centum 15 Annual Income as of July 1, 2017 Percentage Assessed Valuation 16 Exempt From Taxation 17 More than $50,000 but less than $51,000 45 per centum 18 $51,000 or more but less than $52,000 40 per centum 19 $52,000 or more but less than $53,000 35 per centum 20 $53,000 or more but less than $53,900 30 per centum 21 $53,900 or more but less than $54,800 25 per centum 22 $54,800 or more but less than $55,700 20 per centum 23 $55,700 or more but less than $56,600 15 per centum 24 $56,600 or more but less than $57,500 10 per centum 25 $57,500 or more but less than $58,400 5 per centum 26 8. Any exemption provided by this section shall be computed after all 27 partial exemptions allowed by law have been subtracted from the total 28 amount assessed. 29 9. Exemption from taxation as provided in this section on real proper- 30 ty owned by husband and wife, one of whom is sixty-five years of age or 31 older, once granted, shall not be rescinded solely because of the death 32 of the older spouse so long as the surviving spouse is at least sixty- 33 two years of age. 34 10. a. For the purposes of this section, title to that portion of real 35 property owned by a cooperative apartment corporation in which a 36 tenant-stockholder of such corporation resides and which is represented 37 by his or her share or shares of stock in such corporation as determined 38 by its or their proportional relationship to the total outstanding stock 39 of the corporation, including that owned by the corporation, shall be 40 deemed to be vested in such tenant-stockholder. That proportion of the 41 assessment of real property owned by a cooperative apartment corpo- 42 ration, determined by the relationship of such real property vested in 43 such tenant-stockholder to such entire parcel and the buildings thereon 44 owned by such cooperative apartment corporation in which such tenant- 45 stockholder resides, shall be subject to exemption from taxation pursu- 46 ant to this section and any exemption so granted shall be credited by 47 the department of finance against the assessed valuation of such real 48 property; the reduction in real property taxes realized thereby shall be 49 credited by the cooperative apartment corporation against the amount of 50 such taxes otherwise payable by or chargeable to such tenant-stockhold- 51 er. Each cooperative apartment corporation shall notify each tenant-

S. 8578 222 1 stockholder in residence thereof of such provisions as are set forth in 2 this section. 3 b. Notwithstanding any other provision of law, a tenant-stockholder 4 who resides in a dwelling which is subject to the provisions of either 5 article two, four, five or eleven of the private housing finance law and 6 who is eligible for a rent increase exemption pursuant to chapter seven 7 of title twenty-six of the code of the preceding municipality shall not 8 be eligible for an exemption pursuant to this subdivision. Notwithstand- 9 ing any other provision of law, a tenant-stockholder who resides in a 10 dwelling which is subject to the provisions of either article two, four, 11 five or eleven of the private housing finance law and who is not eligi- 12 ble for a rent increase exemption pursuant to chapter seven of title 13 twenty-six of this code but who meets the requirements for eligibility 14 for an exemption pursuant to this section shall be eligible for such 15 exemption provided that such exemption shall be in an amount determined 16 by multiplying the exemption otherwise allowable pursuant to this 17 section by a fraction having a numerator equal to the amount of real 18 property taxes or payments in lieu of taxes that were paid with respect 19 to such dwelling and a denominator equal to the full amount of real 20 property taxes that would have been owed with respect to such dwelling 21 had it not been granted an exemption or abatement of real property taxes 22 pursuant to any provision of law, provided, however, that any reduction 23 in real property taxes received with respect to such dwelling pursuant 24 to chapter seven of title twenty-six of this code or pursuant to this 25 section shall not be considered in calculating such numerator. Any 26 tenant-stockholder who resides in a dwelling which was or continues to 27 be subject to a mortgage insured or initially insured by the federal 28 government pursuant to section two hundred thirteen of the national 29 housing act, as amended, and who is eligible for both a rent increase 30 exemption pursuant to chapter seven of title twenty-six of this code and 31 an exemption pursuant to this subdivision, may apply for and receive 32 either a rent increase exemption pursuant to such chapter or an 33 exemption pursuant to this subdivision, but not both. 34 11. Exemption Option. Notwithstanding any provision of this part to 35 the contrary, real property owned by one or more persons where one of 36 such owners qualifies for a real property tax exemption pursuant to this 37 section or section 11-245.4 of this part, and another of such owners 38 qualifies for a different tax exemption pursuant to such sections of 39 this part as authorized by state law, such owners shall have the option 40 of choosing the one exemption which is most beneficial to such owners. 41 Such owners shall not be prohibited from taking one such exemption sole- 42 ly on the basis that such owners qualify for more than one exemption and 43 therefore are not eligible for any exemptions. 44 § 11-245.4 Exemption for persons with disabilities. 1. (a) Real prop- 45 erty owned by one or more persons with disabilities, or real property 46 owned by a husband, wife, or both, or by siblings, at least one of whom 47 has a disability, or real property owned by one or more persons, some of 48 whom qualify under this section and section 11-245.3 of this part, and 49 whose income, as hereafter defined, is limited by reason of such disa- 50 bility, shall be exempt from taxes on real estate to the extent of fifty 51 per centum of the assessed valuation thereof as hereinafter provided. 52 For purposes of this section, sibling shall mean a brother or a sister, 53 whether related through half blood, whole blood or adoption. 54 (b) For purposes of this section, a person with a disability is one 55 who has a physical or mental impairment, not due to current use of alco- 56 hol or illegal drug use, which substantially limits such person's abili-

S. 8578 223 1 ty to engage in one or more major life activities, such as caring for 2 one's self, performing manual tasks, walking, seeing, hearing, speaking, 3 breathing, learning and working, and who (i) is certified to receive 4 social security disability insurance (SSDI) or supplemental security 5 income (SSI) benefits under the federal social security act, or (ii) is 6 certified to receive railroad retirement disability benefits under the 7 federal railroad retirement act, or (iii) has received a certificate 8 from the state commission for the blind and visually handicapped stating 9 that such person is legally blind, or (iv) is certified to receive a 10 United States postal service disability pension. An award letter from 11 the social security administration or the railroad retirement board or a 12 certificate from the state commission for the blind and visually hand- 13 icapped or an award letter from the United States postal service shall 14 be submitted as proof of disability. 15 2. Exemption from taxation for school purposes shall not be granted in 16 the case of real property where a child resides if such child attends a 17 public school of elementary or secondary education. 18 3. No exemption shall be granted: 19 (a) if the income of the owner or the combined income of the owners of 20 the property for the income tax year immediately preceding the date of 21 making application for exemption exceeds the sum of twenty-six thousand 22 dollars beginning July first, two thousand six, twenty-seven thousand 23 dollars beginning July first, two thousand seven, twenty-eight thousand 24 dollars beginning July first, two thousand eight, twenty-nine thousand 25 dollars beginning July first, two thousand nine, and fifty thousand 26 dollars beginning July first, two thousand seventeen. Income tax year 27 shall mean the twelve-month period for which the owner or owners filed a 28 federal personal income tax return, or if no such return is filed, the 29 calendar year. Where title is vested in either the husband or the wife, 30 their combined income may not exceed such sum, except where the husband 31 or wife, or ex-husband or ex-wife is absent from the property due to 32 divorce, legal separation or abandonment, then only the income of the 33 spouse or ex-spouse residing on the property shall be considered and may 34 not exceed such sum. Such income shall include social security and 35 retirement benefits, interest, dividends, total gain from the sale or 36 exchange of a capital asset which may be offset by a loss from the sale 37 or exchange of a capital asset in the same income tax year, net rental 38 income, salary or earnings, and net income from self-employment, but 39 shall not include a return of capital, gifts, inheritances or monies 40 earned through employment in the federal foster grandparent program and 41 any such income shall be offset by all medical and prescription drug 42 expenses actually paid which were not reimbursed or paid for by insur- 43 ance. In computing net rental income and net income from self-employment 44 no depreciation deduction shall be allowed for the exhaustion, wear and 45 tear of real or personal property held for the production of income; 46 (b) unless the property is used exclusively for residential purposes, 47 provided, however, that in the event any portion of such property is not 48 so used exclusively for residential purposes but is used for other 49 purposes, such portion shall be subject to taxation and the remaining 50 portion only shall be entitled to the exemption provided by this 51 section; 52 (c) unless the real property is the legal residence of and is occupied 53 in whole or in part by the disabled person; except where the disabled 54 person is absent from the residence while receiving health-related care 55 as an inpatient of a residential health care facility, as defined in 56 section twenty-eight hundred one of the public health law, provided that

S. 8578 224 1 any income accruing to that person shall be considered income for 2 purposes of this section only to the extent that it exceeds the amount 3 paid by such person or spouse or sibling of such person for care in the 4 facility. 5 4. Application for such exemption must be made annually by the owner, 6 or all of the owners of the property, on forms prescribed by the state 7 board, and shall be filed with the department of finance on or before 8 the fifteenth day of March of the appropriate year; provided, however, 9 proof of a permanent disability need be submitted only in the year 10 exemption pursuant to this section is first sought or the disability is 11 first determined to be permanent. 12 5. At least sixty days prior to the fifteenth day of March of the 13 appropriate year, the department of finance shall mail to each person 14 who was granted exemption pursuant to this section on the latest 15 completed assessment roll an application form and a notice that such 16 application must be filed on or before the fifteenth day of March and be 17 approved in order for the exemption to continue to be granted. Failure 18 to mail such application form or the failure of such person to receive 19 the same shall not prevent the levy, collection and enforcement of the 20 payment of the taxes on property owned by such person. 21 6. Notwithstanding the maximum income exemption eligibility level 22 provided in subdivision three of this section, an exemption, subject to 23 all other provisions of this section, shall be granted as indicated in 24 the following schedule: 25 Percentage Assessed Valuation 26 Annual Income as of July 1, 2006 Exempt From Taxation 27 More than $26,000 but less than $27,000 45 per centum 28 $27,000 or more but less than $28,000 40 per centum 29 $28,000 or more but less than $29,000 35 per centum 30 $29,000 or more but less than $29,900 30 per centum 31 $29,900 or more but less than $30,800 25 per centum 32 $30,800 or more but less than $31,700 20 per centum 33 $31,700 or more but less than $32,600 15 per centum 34 $32,600 or more but less than $33,500 10 per centum 35 $33,500 or more but less than $34,400 5 per centum 36 Percentage Assessed Valuation 37 Annual Income as of July 1, 2007 Exempt From Taxation 38 More than $27,000 but less than $28,000 45 per centum 39 $28,000 or more but less than $29,000 40 per centum 40 $29,000 or more but less than $30,000 35 per centum 41 $30,000 or more but less than $30,900 30 per centum 42 $30,900 or more but less than $31,800 25 per centum 43 $31,800 or more but less than $32,700 20 per centum 44 $32,700 or more but less than $33,600 15 per centum 45 $33,600 or more but less than $34,500 10 per centum 46 $34,500 or more but less than $35,400 5 per centum

S. 8578 225 1 Percentage Assessed Valuation 2 Annual Income as of July 1, 2008 Exempt From Taxation 3 More than $28,000 but less than $29,000 45 per centum 4 $29,000 or more but less than $30,000 40 per centum 5 $30,000 or more but less than $31,000 35 per centum 6 $31,000 or more but less than $31,900 30 per centum 7 $31,900 or more but less than $32,800 25 per centum 8 $32,800 or more but less than $33,700 20 per centum 9 $33,700 or more but less than $34,600 15 per centum 10 $34,600 or more but less than $35,500 10 per centum 11 $35,500 or more but less than $36,400 5 per centum 12 Percentage Assessed Valuation 13 Annual Income as of July 1, 2009 Exempt From Taxation 14 More than $29,000 but less than $30,000 45 per centum 15 $30,000 or more but less than $31,000 40 per centum 16 $31,000 or more but less than $32,000 35 per centum 17 $32,000 or more but less than $32,900 30 per centum 18 $32,900 or more but less than $33,800 25 per centum 19 $33,800 or more but less than $34,700 20 per centum 20 $34,700 or more but less than $35,600 15 per centum 21 $35,600 or more but less than $36,500 10 per centum 22 $36,500 or more but less than $37,400 5 per centum 23 Percentage Assessed Valuation 24 Annual Income as of July 1, 2017 Exempt From Taxation 25 More than $50,000 but less than $51,000 45 per centum 26 $51,000 or more but less than $52,000 40 per centum 27 $52,000 or more but less than $53,000 35 per centum 28 $53,000 or more but less than $53,900 30 per centum 29 $53,900 or more but less than $54,800 25 per centum 30 $54,800 or more but less than $55,700 20 per centum 31 $55,700 or more but less than $56,600 15 per centum 32 $56,600 or more but less than $57,500 10 per centum 33 $57,500 or more but less than $58,400 5 per centum 34 7. Any exemption provided by this section shall be computed after all 35 other partial exemptions allowed by law have been subtracted from the 36 total amount assessed; provided, however, that no parcel may receive an 37 exemption pursuant to both this section and section 11-245.3. 38 8. (a) For purposes of this section, title to that portion of real 39 property owned by a cooperative apartment corporation in which a 40 tenant-stockholder of such corporation resides, and which is represented 41 by his or her share or shares of stock in such corporation as determined 42 by its or their proportional relationship to the total outstanding stock 43 of the corporation, including that owned by the corporation, shall be 44 deemed to be vested in such tenant-stockholder. That proportion of the 45 assessment of such real property owned by a cooperative apartment corpo- 46 ration determined by the relationship of such real property vested in 47 such tenant-stockholder to such entire parcel and the buildings thereon 48 owned by such cooperative apartment corporation in which such tenant- 49 stockholder resides shall be subject to exemption from taxation pursuant 50 to this section and any exemption so granted shall be credited by the

S. 8578 226 1 department of finance against the assessed valuation of such real prop- 2 erty; the reduction in real property taxes realized thereby shall be 3 credited by the cooperative apartment corporation against the amount of 4 such taxes otherwise payable by or chargeable to such tenant-stockhold- 5 er. 6 (b) Notwithstanding any other provision of law, a tenant-stockholder 7 who resides in a dwelling which is subject to the provisions of either 8 article two, four, five or eleven of the private housing finance law 9 shall not be eligible for an exemption pursuant to this subdivision. 10 9. Notwithstanding any other provision of law to the contrary, the 11 provisions of this section shall apply to real property held in trust 12 solely for the benefit of a person or persons who would otherwise be 13 eligible for a real property tax exemption, pursuant to subdivision one 14 of this section, were such person or persons the owner or owners of such 15 real property. 16 10. Exemption Option. Notwithstanding any provision of this part to 17 the contrary, real property owned by one or more persons where one of 18 such owners qualifies for a real property tax exemption pursuant to this 19 section or section 11-245.3 of this part, and another of such owners 20 qualifies for a different tax exemption pursuant to such sections of 21 this part as authorized by state law, such owners shall have the option 22 of choosing the one exemption which is most beneficial to such owners. 23 Such owners shall not be prohibited from taking one such exemption sole- 24 ly on the basis that such owners qualify for more than one exemption and 25 therefore are not eligible for any exemptions. 26 § 11-245.45 Exemption for veterans. Pursuant to paragraph (d) of 27 subdivision eight of section four hundred fifty-eight of the real prop- 28 erty tax law, the city hereby authorizes real property owned by a coop- 29 erative apartment corporation to be exempt from taxation in accordance 30 with such section and any local laws adopted pursuant to such section 31 beginning July first, nineteen hundred ninety-eight. 32 § 11-245.46 Exemption for veterans; taxes for school purposes 33 exempted. Pursuant to paragraph three of subdivision one of section 34 four hundred fifty-eight of the real property tax law, the city hereby 35 provides that the exemption authorized pursuant to such section shall be 36 applicable to taxes for school purposes. 37 § 11-245.5 Alternative exemption for veterans. Pursuant to paragraph 38 (d) of subdivision six of section four hundred fifty-eight-a of the real 39 property tax law, the city hereby authorizes real property owned by a 40 cooperative apartment corporation to be exempt from taxation in accord- 41 ance with such section and any local laws adopted pursuant to such 42 section beginning July first, nineteen hundred ninety-eight. 43 § 11-245.6 Alternative exemption for veterans; maximum exemptions 44 allowable. Pursuant to subparagraph (ii) of paragraph (d) of subdivision 45 two of section four hundred fifty-eight-a of the real property tax law, 46 the city hereby increases the maximum exemptions allowable in paragraphs 47 (a), (b) and (c) of subdivision two of section four hundred 48 fifty-eight-a of the real property tax law. The maximum exemption allow- 49 able in such paragraph (a) shall be fifteen percent of the assessed 50 value of the qualifying residential real property; provided, however, 51 that such exemption shall not exceed forty-eight thousand dollars or the 52 product of forty-eight thousand dollars multiplied by the latest class 53 ratio, whichever is less. In addition to the exemption provided by such 54 paragraph (a), as increased by this section, the maximum exemption 55 allowable in such paragraph (b) shall be ten percent of the assessed 56 value of the qualifying residential real property; provided, however,

S. 8578 227 1 that such exemption shall not exceed thirty-two thousand dollars or the 2 product of thirty-two thousand dollars multiplied by the latest class 3 ratio, whichever is less. In addition to the exemptions provided by such 4 paragraphs (a) and (b), as increased by this section, the maximum 5 exemption allowable in such paragraph (c) shall be the product of the 6 assessed value of the qualifying residential real property multiplied by 7 fifty percent of the veteran's disability rating; provided, however, 8 that such exemption shall not exceed one hundred sixty thousand dollars 9 or the product of one hundred sixty thousand dollars multiplied by the 10 latest class ratio, whichever is less. The maximum exemptions allowable 11 in such paragraphs (a), (b) and (c), as increased by this section, shall 12 not apply to any assessment roll completed and filed prior to the first 13 day of January, two thousand six. 14 § 11-245.7 Alternative exemption for veterans; gold star parent. 15 Pursuant to paragraph (b) of subdivision seven of section four hundred 16 fifty-eight-a of the real property tax law, and in accordance with such 17 section and any local laws adopted pursuant thereto, the city hereby 18 includes a gold star parent within the definition of "qualified owner" 19 as provided in paragraph (c) of subdivision one of such section, and 20 includes property owned by a gold star parent within the definition of 21 "qualifying residential real property" as provided in paragraph (d) of 22 subdivision one of such section, provided that such property is the 23 primary residence of the gold star parent. 24 § 11-245.75 Alternative exemption for veterans; school district taxa- 25 tion exempted. Pursuant to subparagraph (i) of paragraph (d) of subdivi- 26 sion two of section four hundred fifty-eight-a of the real property tax 27 law, the city hereby provides that the exemptions allowable in para- 28 graphs (a), (b) and (c) of subdivision two of section four hundred 29 fifty-eight-a of the real property tax law shall be applicable to school 30 district taxation. 31 § 11-245.8 ENERGY STAR appliances. a. For the purposes of this 32 section, the following definitions shall apply in conjunction with the 33 definitions found in sections 27-232 and 27-2004 of this code: 34 (1) The term "ENERGY STAR" shall mean a designation from the United 35 States environmental protection agency or department of energy indicat- 36 ing that a product meets the energy efficiency standards set forth by 37 the agency for compliance with the ENERGY STAR program. 38 (2) The term "household appliance" shall mean any refrigerator, room 39 air conditioner, dishwasher or clothes washer, within a dwelling unit in 40 a multiple dwelling that is provided by the owner of such multiple 41 dwelling. This definition shall also include any boiler or furnace that 42 provides heat or hot water for any dwelling unit in a multiple dwelling. 43 b. For any building for which any benefit is conferred pursuant to 44 four hundred eighty-nine of the real property tax law, whenever any 45 household appliance in any dwelling unit, or any household appliance 46 that provides heat or hot water for any dwelling unit in a multiple 47 dwelling, is installed or replaced with a new household appliance, such 48 new appliance shall be certified as Energy Star. 49 c. For any building for which any benefit is conferred pursuant to 50 section four hundred twenty-one-a of the real property tax law, whenever 51 any household appliance in any dwelling unit, or any household appliance 52 that provides heat or hot water for any dwelling unit in a multiple 53 dwelling, is installed or replaced with a new household appliance, such 54 new appliance shall be certified as Energy Star. 55 d. The commissioner may enact rules requiring additional energy 56 conservation measures for any building for which any benefit is

S. 8578 228 1 conferred pursuant to section four hundred eighty-nine of the real prop- 2 erty tax law or section four hundred twenty-one-a of the real property 3 tax law. 4 e. The commissioner shall inform applicants for any benefits affected 5 by this section of the requirements of this section. 6 f. The requirements of subdivisions b and c of this section shall not 7 apply where: 8 1) an ENERGY STAR certified household appliance of appropriate size is 9 not manufactured, such that movement of walls or fixtures would be 10 necessary to create sufficient space for such appliance; or 11 2) an ENERGY STAR certified boiler or furnace of sufficient capacity 12 is not manufactured. 13 § 11-245.9 Notice of residential property tax exemptions. a. The 14 commissioner of finance, or his or her designee, shall provide a notice 15 relating to the lien sale process to all property owners included with 16 the notice of value sent to property owners by the department of finance 17 and, in addition, no later than October thirty-first of each year, to 18 any property owner who is delinquent in the payment of any real property 19 taxes, assessments, or any other charges that are made a lien subject to 20 the provisions of chapter three of this title, except sewer rents, sewer 21 charges and water rents, if such delinquency, in the aggregate, equals 22 or exceeds the sum of one thousand dollars. This notice shall include, 23 but not be limited to, actions homeowners can take if a lien is sold on 24 such property; the type of debt that can be sold in a lien sale; a time- 25 line of statutory notifications required pursuant to section 11-320 of 26 this title; a clear, concise explanation of the consequences of the sale 27 of a tax lien; the telephone number and electronic mail address of the 28 employee or employees designated pursuant to subdivision f of section 29 11-320 of this title; a conspicuous statement that an owner of any class 30 of property may enter into a payment plan for the satisfaction of delin- 31 quent real property taxes, assessments, sewer rents, sewer surcharges, 32 water rents, and any other charges that are made a lien subject to the 33 provisions of chapter three of this title, or exclusion from the tax 34 lien sale; credits and property tax exemptions that may exclude certain 35 class one real property from a tax lien sale; and clear and concise 36 instructions on how an owner of any class of property may register to 37 receive information from the department, through electronic mail, 38 regarding outreach sessions relating to the sale of tax liens conducted 39 pursuant to subdivision j of section 11-320 of this title. Such notice 40 shall also include information on the following real property tax cred- 41 its or real property tax exemptions: 42 1. the senior citizen homeowner exemption pursuant to section 11-245.3 43 of this part; 44 2. the exemption for persons with disabilities pursuant to section 45 11-245.4 of this part; 46 3. the exemptions for veterans pursuant to sections four hundred 47 fifty-eight and four hundred fifty-eight-a of the real property tax law; 48 4. the school tax relief (STAR) exemption pursuant to section four 49 hundred twenty-five of the real property tax law; 50 5. the enhanced school tax relief (STAR) exemption pursuant to subdi- 51 vision four of section four hundred twenty-five of the real property tax 52 law; 53 6. the state circuit breaker income tax credit pursuant to subsection 54 (e) of section six hundred six of the tax law; and

S. 8578 229 1 7. any other credit or residential real property tax exemption, which, 2 in the discretion of the commissioner, should be included in such 3 notice. 4 Upon such property owner's written request, or verbal request to 311 5 or any employee designated pursuant to subdivision f of section 11-320 6 of this title, a Chinese, Korean, Russian or Spanish translation of such 7 notice shall be provided promptly to such property owner. 8 b. The notice required pursuant to this section shall include: 9 1. a brief description of each exemption program; and 10 2. a phone number at the department and a website address where 11 taxpayers can obtain additional information on the exemption programs 12 and all necessary forms and applications. 13 c. The notice that is required, pursuant to this section, to be 14 provided by the commissioner of finance or his or her designee no later 15 than October thirty-first of each year shall include contact information 16 for the office of financial empowerment at the department of consumer 17 and worker protection. 18 § 11-245.10 Alternative exemption for veterans; transfer of title. 1. 19 Pursuant to subdivision eight of section four hundred fifty-eight-a of 20 the real property tax law, where a veteran, the spouse of a veteran or 21 unremarried surviving spouse already receiving an exemption pursuant to 22 such section sells the property receiving such exemption and purchases 23 property within the city, the department of finance shall transfer and 24 prorate, for the remainder of the fiscal year, the exemption received. 25 The prorated exemption shall be based upon the date the veteran, the 26 spouse of the veteran or unremarried surviving spouse obtains title to 27 the new property and shall be calculated by multiplying the tax rate for 28 which taxes were levied, on the appropriate tax roll used for the fiscal 29 year during which the transfer occurred, multiplied by the previously 30 granted exempt amount, multiplied by the fraction of each fiscal year 31 remaining subsequent to the transfer of title. 32 2. Nothing in this section shall be construed to remove the require- 33 ment that any such veteran, the spouse of the veteran or unremarried 34 surviving spouse transferring an exemption pursuant to subdivision one 35 of this section shall reapply for the exemption authorized pursuant to 36 section four hundred fifty-eight-a of the real property tax law on or 37 before the following taxable status date, in the event such veteran, the 38 spouse of the veteran or unremarried surviving spouse wishes to receive 39 the exemption in future fiscal years. 40 PART 2 41 EXEMPTION FOR CERTAIN NONPROFIT ORGANIZATIONS 42 § 11-246 Taxation of property of nonprofit organizations, pharmaceu- 43 tical societies and dental societies. 1. a. Pursuant to the requirements 44 of sections four hundred twenty-a and four hundred forty-six of the real 45 property tax law, real property owned by a corporation or association 46 which is organized or conducted exclusively for religious, charitable, 47 hospital, educational or cemetery purposes, or for the purposes of the 48 moral or mental improvement of men, women or children or for two or more 49 such purposes shall not be taxable. 50 b. Real property owned by a corporation or association which is organ- 51 ized or conducted exclusively for Bible, tract, benevolent, missionary, 52 infirmary, public playground, scientific, literary, library, patriotic 53 or historical purposes, for the development of good sportsmanship for 54 persons under the age of eighteen years through the conduct of super-

S. 8578 230 1 vised athletic games, or for the enforcement of laws relating to chil- 2 dren or animals, or for two or more such purposes, and used exclusively 3 for carrying out thereupon one or more of such purposes either by the 4 owning corporation or association, or by another such corporation or 5 association as provided in section four hundred twenty-b of the real 6 property tax law shall not be taxable. Any corporation or association 7 which uses real property exempted from taxation pursuant to this para- 8 graph shall make available to the council, the commissioner of finance 9 and the public a report, in such form as may be prescribed by the 10 commissioner of finance, setting forth the efforts of such corporation 11 or association undertaken in the previous calendar year to provide 12 assistance to city programs and city residents, by filing such report 13 with the city clerk not later than June first of each year. 14 c. Real property owned by a corporation or association which is organ- 15 ized or conducted exclusively for bar association or medical society 16 purposes, or both such purposes, and used exclusively for carrying out 17 thereupon one or both such purposes either by the owning corporation or 18 association, or by another such corporation or association shall be 19 taxable pursuant to the authority contained in section four hundred 20 twenty-b of the real property tax law. 21 2. Real property from which no rent is derived and which is owned by 22 an incorporated pharmaceutical society which is either wholly or partly 23 within the city, which society has heretofore been or may hereafter be 24 authorized and empowered by act of the legislature to establish and 25 which has established or may hereafter establish a college of pharmacy 26 in this city shall be taxable. 27 3. Real property from which no income is derived which is owned by a 28 dental society of any judicial district which judicial district is whol- 29 ly or partly within the city, which dental society was incorporated 30 under the education law shall be taxable. 31 4. Real property previously exempt from taxation but made taxable 32 pursuant to this section as of the first of January, nineteen hundred 33 seventy-two shall be taxed for the period from the first of January to 34 and including the thirtieth of June, nineteen hundred seventy-two by 35 applying one-half of the tax rate for the fiscal year nineteen hundred 36 seventy-one, seventy-two to the assessments made and exemptions claimed 37 with reference to the taxable status date falling on the twenty-fifth of 38 January, nineteen hundred seventy-two. The taxes thus computed for the 39 period from the first of January to and including the thirtieth of June, 40 nineteen hundred seventy-two shall be due and payable on the first of 41 June, nineteen hundred seventy-two. 42 5. Real property which is taxable under this section shall be subject 43 to any special ad valorem levies and special assessments which are 44 imposed to defray the cost of improvements or services furnished by the 45 city. 46 § 11-246.1 Denial; information required. The commissioner of finance 47 shall include, in any written communication with a property owner 48 related to the denial of a real property tax exemption pursuant to 49 section four hundred twenty-a, four hundred twenty-b, four hundred 50 forty-six, or four hundred sixty-two of the real property tax law, 51 information on actions a property owner can take, upon notice of a sale 52 of a tax lien of property of such owner, that may prevent the sale of 53 such tax lien.

S. 8578 231 1 PART 3 2 TAX EXEMPTION FOR CERTAIN INDUSTRIAL AND 3 COMMERCIAL PROPERTIES 4 § 11-247 Definitions. When used in this part: 5 a. "Applicant" means any person or corporation obligated to pay real 6 property taxes on the property for which an exemption is sought, or in 7 the case of exempt property, the record owner thereof, provided, howev- 8 er, that such property is not commercial property located in an area 9 designated as excluded pursuant to section 11-249 of this part; 10 b. "Board" means the industrial and commercial incentive board; 11 c. "Commercial" means any non-residential property used primarily for 12 the buying, selling or otherwise providing of goods or services, 13 provided that the use of such property has not been designated as a 14 restricted commercial use pursuant to section 11-249 of this part; 15 d. "Construction" means the building of new industrial or commercial 16 structures on vacant or predominantly vacant land, or the modernization, 17 rehabilitation or expansion or other improvements of an existing commer- 18 cial structure where such modernization, rehabilitation, expansion or 19 other improvement is not physically or functionally integrated with the 20 existing structure or results in additional usable square footage fifty 21 per centum greater than the square footage of the existing structure; 22 e. "Industrial" means property used primarily for the manufacturing or 23 assembling of goods or the processing of raw materials; 24 f. "Predominantly vacant land" means land, including land under water, 25 on which not more than fifteen percent of the lot area contains 26 enclosed, permanent improvements; in addition, such land may include 27 existing foundations. A fence, shed, garage, attendant's booth, paving, 28 pier, bulkhead, lighting fixtures, and similar items, or any improvement 29 having an assessed value of less than two thousand dollars shall not 30 constitute an enclosed, permanent improvement; 31 g. "Reconstruction" means the modernization, rehabilitation, expansion 32 or other improvement of an existing commercial or industrial structure 33 where the total proposed project cost is in an amount equal to at least 34 twenty per centum of the assessed value of the property at the time an 35 application for a certificate of eligibility pursuant to this part is 36 made, and where such modernization, rehabilitation, expansion or other 37 improvement is physically and functionally integrated with the existing 38 structure and does not create additional usable square footage greater 39 than fifty per centum of the usable square footage of the existing 40 structure except in a case where the existing structure has been 41 substantially destroyed by fire or other casualty; 42 h. "Residential property" shall mean property, other than property 43 used for hotel purposes, on which will exist upon completion of 44 construction a building or structure containing more than one independ- 45 ent dwelling unit or where more than one-third of the total square 46 footage of said structure is to be used for residential purposes; it 47 shall also mean, in the case of reconstruction, property on which exists 48 or will exist upon completion of the reconstruction a building or struc- 49 ture where more than one-third of the total square footage is used or is 50 to be used for dwelling purposes; 51 i. "Vacant land" means land, including land under water, which 52 contains no enclosed, permanent improvement. A fence, shed, garage, 53 attendant's booth, paving, pier, bulkhead, lighting fixtures, and simi- 54 lar items, or any improvement having an assessed value of less than two

S. 8578 232 1 thousand dollars shall not constitute an enclosed, permanent improve- 2 ment. 3 § 11-248 Industrial and commercial incentive board. There shall be an 4 industrial and commercial incentive board to consist of the deputy mayor 5 who shall be chairperson of the board, the commissioner of finance, the 6 director of planning and the director of budget, each of whom shall have 7 the power to designate an alternate to represent him or her at board 8 meetings with all the rights and powers, including the right to vote, 9 reserved to all board members, provided that such designation be in 10 writing to the chairperson of the board, and three other members to be 11 appointed by the mayor. The members of the board who shall be agents, 12 officers, or employees of the city shall serve without compensation but 13 shall be reimbursed for expenses necessarily incurred in the performance 14 of their duties. The members of the board who are not agents, officers, 15 or employees of the city shall receive as compensation for their 16 services one hundred dollars per diem, provided, however, that the total 17 compensation paid to any such member shall not exceed twelve hundred 18 dollars for any calendar year. Four members of the board shall consti- 19 tute a quorum. 20 § 11-249 Functions, powers and duties of the board; annual desig- 21 nation of exemption areas and restricted commercial uses. a. The 22 members of the board shall have the following functions, powers and 23 duties: 24 1. to receive and review applications for certificates of eligibility 25 pursuant to the charter and pursuant to subdivision thirteen of section 26 11-604 and subdivision (e) of section 11-503 of this title; 27 2. to make findings and determinations on the qualifications of 28 applicants for certificates of eligibility pursuant to this part and 29 subdivision (e) of section 11-503 of this title; 30 3. to issue certificates of eligibility and amendments thereto; 31 4. to make recommendations to the tax commission on the termination of 32 a tax exemption pursuant to section 11-253 of this part; 33 5. to designate annually, pursuant to subdivision b of this section, 34 areas in which exemptions for commercial construction or reconstruction 35 shall be granted as of right, areas from which such exemptions shall be 36 excluded and commercial uses for which the granting of exemptions shall 37 be restricted; and 38 6. to make and promulgate rules and regulations to carry out the 39 purposes of the board. 40 b. (1) Not later than October first of each year the board shall 41 publish a notice at least once in the official paper or a newspaper of 42 general circulation in the city setting forth: (i) the proposed bounda- 43 ries of areas in which commercial construction or reconstruction shall 44 be granted exemptions as of right, proposed boundaries of areas from 45 which exemptions for commercial construction or reconstruction shall be 46 excluded and proposed restricted commercial uses; and (ii) the date, not 47 earlier than ten nor later than thirty days following the publication of 48 such notice, on which the board will hold a public hearing to hear all 49 persons interested in the designation of such boundaries and restricted 50 commercial uses. 51 (2) Not earlier than ten nor later than thirty days following the 52 conclusion of the public hearing provided for in paragraph one of this 53 subdivision, the board shall designate the boundaries of areas in which 54 exemptions for commercial construction or reconstruction shall be grant- 55 ed as of right and areas from which such exemptions shall be excluded

S. 8578 233 1 and shall also designate restricted commercial uses. Such designations 2 shall be made upon the following determinations: 3 (i) With respect to areas in which exemption for commercial 4 construction or reconstruction shall be granted as of right, the board 5 shall determine that market conditions in each area are such that 6 exemptions are required to attract commercial construction or recon- 7 struction to the area and that attracting such construction or recon- 8 struction, and the granting of exemptions therefor, are in the public 9 interest. In making such determination, the board may consider, among 10 other factors, that the area is experiencing economic distress or is 11 characterized by an unusually large number of vacant, underutilized, 12 unsuitable or substandard structures, or by other substandard, unsani- 13 tary, deteriorated or deteriorating conditions, with or without tangible 14 blight, or that commercial development in the area will be beneficial to 15 the city's economy. 16 (ii) With respect to areas from which exemptions for commercial 17 construction or reconstruction are to be excluded, the board shall 18 determine that market conditions in each area are such that exemptions 19 are not required to attract commercial construction or reconstruction to 20 the area, or that it is not in the public interest to grant exemptions 21 for commercial construction or reconstruction in the area. No applica- 22 tions for exemptions for commercial construction or reconstruction shall 23 be accepted from such areas. 24 (iii) With respect to restricted commercial uses, the board shall 25 determine that it is not in the public interest to grant exemptions for 26 such uses unless the board further determines that in certain areas 27 designated pursuant to this subdivision, such uses will have an espe- 28 cially positive impact on the area's economy. All applications for 29 exemptions for restricted commercial uses shall be determined pursuant 30 to paragraphs two and three of subdivision b of section 11-251 of this 31 part. 32 (3) Designations made pursuant to this subdivision shall be effective 33 on the first of January of each year. 34 c. So far as practicable and subject to the approval of the mayor, the 35 services of all other city departments and agencies shall be made avail- 36 able by their respective heads to the board for the carrying out of the 37 functions stated in this part. The head of any department or agency 38 shall furnish information in the possession of such department or agency 39 when the board, after consultation with the mayor, so requests. 40 § 11-250 Real property tax exemption. a. A real property tax 41 exemption pursuant to this part shall be granted to an applicant who, 42 within a period of thirty-six months, or following an extension pursuant 43 to section 11-254 of this part within a period of forty-eight months, 44 from the date of issuance of a certificate of eligibility has completed 45 reconstruction or construction work in accordance with the plans 46 approved by the board in the certificate of eligibility. The amount of 47 the tax exemption shall be determined as follows: 48 (1) In the case of an applicant who has completed industrial 49 construction or reconstruction work, or commercial reconstruction work 50 designated as of right pursuant to section 11-249 of this part or as 51 specially needed pursuant to section 11-251 of this part, the tax 52 exemption shall continue for nineteen tax years in an amount decreasing 53 by five per centum each year from an exemption of ninety-five per centum 54 of the exemption base, as defined in paragraph four of this subdivision. 55 (2) In the case of an applicant who has completed other commercial 56 reconstruction work, or new commercial construction work designated as

S. 8578 234 1 of right pursuant to section 11-249 of this part or as specially needed 2 pursuant to section 11-251 of this part, the tax exemption shall contin- 3 ue for ten tax years, in an amount decreasing by five per centum each 4 year from an exemption of fifty per centum of the exemption base. 5 (3) In the case of an applicant who has completed other new commercial 6 construction work, the exemption shall continue for five tax years in an 7 amount decreasing by ten per centum each year from an exemption of fifty 8 per centum of the exemption base. 9 (4) The term "exemption base" shall mean the difference between the 10 final assessed value of the property as determined upon completion of 11 the construction or reconstruction work and the lesser of (i) the 12 assessed value of the property at the time an application for certif- 13 icate of eligibility pursuant to this part is made, or (ii) the assessed 14 value as may thereafter be reduced pursuant to application to the tax 15 commission. 16 The tax exemption shall be computed according to the following tables: 17 CONSTRUCTION OR RECONSTRUCTION OF INDUSTRIAL STRUCTURES OR 18 RECONSTRUCTION OF AS OF RIGHT OR SPECIALLY NEEDED COMMERCIAL STRUCTURES 19 ======================================================================== 20 Year following 21 completion Percentage 22 of work of exemption 23 ------------------------------------------------------------------------ 24 1...........................................95 25 2...........................................90 26 3...........................................85 27 4...........................................80 28 5...........................................75 29 6...........................................70 30 7...........................................65 31 8...........................................60 32 9...........................................55 33 10...........................................50 34 11...........................................45 35 12...........................................40 36 13...........................................35 37 14...........................................30 38 15...........................................25 39 16...........................................20 40 17...........................................15 41 18...........................................10 42 19........................................... 5 43 ======================================================================== 44 RECONSTRUCTION OF OTHER COMMERCIAL STRUCTURES OR CONSTRUCTION OF AS OF 45 RIGHT OR SPECIALLY NEEDED COMMERCIAL STRUCTURES 46 ======================================================================== 47 Year following 48 completion of Percentage 49 work of exemption

S. 8578 235 1 ------------------------------------------------------------------------ 2 1..........................................50 3 2..........................................45 4 3..........................................40 5 4..........................................35 6 5..........................................30 7 6..........................................25 8 7..........................................20 9 8..........................................15 10 9..........................................10 11 10.......................................... 5 12 ======================================================================== 13 CONSTRUCTION OF OTHER NEW COMMERCIAL STRUCTURES 14 ======================================================================== 15 Year following 16 completion of Percentage 17 work of exemption 18 ------------------------------------------------------------------------ 19 1..........................................50 20 2..........................................40 21 3..........................................30 22 4..........................................20 23 5..........................................10 24 ======================================================================== 25 b. The taxes payable during the period from the issuance of a certif- 26 icate of eligibility to the approval of the tax exemption pursuant to 27 section 11-252 of this part shall be paid on the lesser of: 28 (1) the assessed value of the property at the time an application for 29 a certificate of eligibility pursuant to this part is made, or 30 (2) the assessed value as may thereafter be reduced pursuant to appli- 31 cation to the tax commission, provided, however, that if reconstruction 32 or construction is not completed in accordance with the plans approved 33 in the certificate of eligibility including any amendments thereto, 34 taxes shall be due and payable retroactively as otherwise required by 35 law. 36 c. In all cases where the board shall have issued a certificate of 37 eligibility prior to January first, nineteen hundred eighty-two, the 38 exemption percentage shall apply to any subsequent increase in the 39 assessed valuation of the property during the tenure of the exemption. 40 Where the board has issued a certificate of eligibility on or after 41 January first, nineteen hundred eighty-two, the exemption percentage 42 shall apply to any subsequent increase in the assessed valuation of the 43 property during the first two years after approval of the tax exemption 44 pursuant to section 11-252 of this part. Commencing two years after 45 approval of the tax exemption pursuant to section 11-252 of this part, 46 the exemption percentage shall apply to any subsequent increase in 47 assessed valuation of the property only to the extent such increase is 48 attributable to the construction or reconstruction work approved in the 49 certificate of eligibility. 50 d. The provisions of this part shall not apply to any increase in 51 assessed value resulting from the construction or reconstruction of a 52 residential structure on any property receiving an exemption under the 53 provisions of this part. The provisions of this part shall apply exclu-

S. 8578 236 1 sively to those structures and the lands underlying them which were 2 identified explicitly in the certificate of eligibility. 3 e. The provisions of this part shall not apply if any new or rehabili- 4 tated construction displaces or replaces a building or buildings 5 containing more than twenty-five occupied dwelling units in existence on 6 the date an application for certificate of eligibility is submitted for 7 preliminary approval pursuant to section 11-251 of this part, which are 8 administered under the local emergency housing rent control act, the 9 rent stabilization law of nineteen hundred sixty-nine or the emergency 10 tenant protection act of nineteen seventy-four, or their successor stat- 11 utes applicable to the city of Staten Island, unless a certificate of 12 eviction has been issued for any of the displaced or replaced units 13 pursuant to the powers granted by the city rent and rehabilitation law. 14 f. The provisions of this part shall not apply to an applicant who 15 has commenced construction or reconstruction work prior to the granting 16 of a certificate of eligibility except where applicant, having filed an 17 application for a certificate of eligibility, receives written permis- 18 sion to commence from the board or its designated representative prior 19 to the granting of a certificate of eligibility. Demolition of existing 20 structures, site preparation limited to grading, filling or clearing, or 21 the curing of a safety or sanitary hazard shall not be deemed to be 22 commencement of construction or reconstruction work. 23 g. Any property enjoying the benefits of a tax exemption approved by 24 the board shall be ineligible for any subsequent or additional tax 25 exemption pursuant to the provisions of this part until the expiration 26 of the original exemption period or earlier termination of the existing 27 exemption by action of the tax commission. 28 § 11-251 Applications for certificates of eligibility. a. Applica- 29 tions for a certificate of eligibility pursuant to this part shall be 30 submitted for preliminary approval to the office for economic develop- 31 ment commencing immediately after March first, nineteen hundred eighty- 32 two and continuing until the thirty-first of January, nineteen hundred 33 eighty-six, on such form or forms as shall be prescribed by the board. 34 In addition to any other information required by the board, the applica- 35 tion shall include plans for reconstruction or construction that have 36 been certified by a professional engineer or an architect of the appli- 37 cant's choice and cost estimates or bids for the proposed reconstruction 38 or construction. Upon a finding by such office that the application 39 satisfies the requirements of reconstruction or construction as defined 40 in this part, the application shall be presented to the board for evalu- 41 ation and written notice thereof shall be given to the community board 42 of the district in which the application site is located. 43 b. (1) In the case of an application for construction or recon- 44 struction of an industrial structure or a commercial structure located 45 in an area designated as of right, the board shall issue a certificate 46 of eligibility upon determining that the application satisfies the 47 requirements of construction or reconstruction as defined in this part, 48 that the applicant has obtained plans for construction or reconstruction 49 certified by a professional engineer or architect, and that the appli- 50 cant has otherwise complied with the provisions of this part and other 51 applicable provisions of law. 52 (2) In the case of an application for construction or reconstruction 53 of a commercial structure not located in an as of right area, or involv- 54 ing a restricted commercial use, the board shall issue a certificate of 55 eligibility upon making the determination specified in paragraph one of 56 this subdivision and upon making the further determination that the

S. 8578 237 1 granting of a tax exemption for the construction or reconstruction of 2 such a structure in the proposed location is in the public interest. In 3 making such determination, the board shall make findings that there is a 4 need in the area for the services the enterprise will provide, that the 5 enterprise will generate or retain employment in the area, and that a 6 tax incentive is required to attract construction or reconstruction of 7 such a structure to the area. In addition, the board shall consider the 8 economic impact such commercial structure will have in the area. 9 (3) In the case of an application for construction or reconstruction 10 of a commercial structure not located in an as of right area, or involv- 11 ing a restricted commercial use, the board may make a further determi- 12 nation that special circumstances warrant designating the proposed 13 construction or reconstruction as "specially needed". In making such 14 determination, the board shall make findings that the commercial 15 services to be provided will have an especially positive impact on the 16 area's or the city's economy and that the applicant has demonstrated 17 that the project cannot go forward without the greater exemption granted 18 by such designation. 19 c. Any meeting of the board at which an application for a certificate 20 of eligibility is to be considered shall be open to the public, and 21 notice of such meeting shall be given at least two weeks prior thereto 22 by publication in a newspaper of general circulation within the city. 23 d. The burden of proof shall be on the applicant to show by clear and 24 convincing evidence that the requirements for granting a tax exemption 25 pursuant to this part have been satisfied, and the board shall have the 26 authority to require that statements made in consideration of the appli- 27 cation be taken under oath. 28 e. After the issuance of a certificate of eligibility the applicant 29 shall apply to the city tax commission, during the period provided by 30 law for filing applications for corrections of assessed valuations, for 31 a tax exemption as provided for in section 11-250 of this part. The 32 application shall be accompanied by a copy of the certificate of eligi- 33 bility. 34 § 11-252 Approval of tax exemption. On completion of the recon- 35 struction or construction work the applicant shall notify the board in 36 writing of said completion. The board shall determine the eligibility 37 of the applicant for the tax exemption as provided in section 11-250 of 38 this part and shall notify the tax commission of such determination. If 39 the applicant is determined to be qualified the commission shall approve 40 the tax exemption. 41 § 11-253 Continuation of tax exemption; termination of tax exemption. 42 The tax exemption approved by the board shall continue in accordance 43 with this part, provided that the applicant files an annual certificate 44 of continuing use stating that the structure and property continue to be 45 used for the industrial or commercial purposes justifying the issuance 46 of the certificate of eligibility. The certificate of continuing use 47 shall be filed with the tax commission on such form or forms and 48 containing such information as shall be prescribed by the tax commis- 49 sion. The tax commission shall have authority to terminate a tax 50 exemption on failure of an applicant to file an annual certificate of 51 continuing use or on the recommendation of the commissioner of finance 52 who, in reviewing the certificate filed by an applicant, has determined 53 that the structure or property has ceased to be used for the industrial 54 or commercial purposes justifying the issuance of the certificate of 55 eligibility.

S. 8578 238 1 § 11-254 Extension of time for completion. Where an applicant has 2 received a certificate of eligibility but has not completed or will not 3 be able to complete the construction or reconstruction work within thir- 4 ty-six months, the board shall, upon application, extend to forty-eight 5 months, from the time of issuance of such certificate, the time for 6 completion of the construction or reconstruction work; provided the 7 applicant has completed not less than two-thirds of the work as speci- 8 fied in the certified plans previously filed with the application at the 9 time of such application for extension. 10 § 11-255 Prior certificates of eligibility. Any project for which a 11 certificate of eligibility has been approved by the board prior to the 12 enactment of this section shall be eligible for a tax exemption computed 13 according to the tax exemption tables and formulae in effect on the date 14 of such approval. 15 PART 4 16 TAX EXEMPTION AND DEFERRAL OF TAX 17 PAYMENT FOR CERTAIN 18 INDUSTRIAL AND COMMERCIAL PROPERTIES 19 § 11-256 Definitions. When used in this part: 20 a. "Applicant" means any person obligated to pay real property taxes 21 on the property for which an exemption from or abatement or deferral of 22 real property tax payments is sought, or in the case of exempt property, 23 the record owner or lessee thereof. 24 b. "Approved plans" means plans submitted to and approved by the 25 department of buildings in connection with the applicant's building 26 permit, including any amendments to such plans approved by such depart- 27 ment before final inspection of the work for which such permit was 28 issued. 29 c. "Benefit period" means the period of time when a recipient is 30 eligible to receive benefits pursuant to this part including in the case 31 of a recipient of a certificate of eligibility for commercial 32 construction work in a deferral area, the period of time when tax 33 payments are to be deferred, the interim period when no tax payments are 34 to be deferred and no deferred tax payments are required to be made, and 35 the period of time when the deferred tax payments are to be made. 36 d. "Commission" means the temporary commercial incentive area boundary 37 commission. 38 e. "Commercial construction work" means the construction of a new 39 building or structure, or portion thereof, or the modernization, reha- 40 bilitation, expansion, or other improvement of an existing building or 41 structure, or portion thereof, for use as commercial property. 42 f. "Commercial property" means nonresidential property: (1) on which 43 will exist after completion of commercial construction work, a building 44 or structure used for the buying, selling or otherwise providing of 45 goods or services including hotel services, or for other lawful busi- 46 ness, commercial or manufacturing activities; and (2) (a) where, except 47 as provided in subparagraph (b) of this paragraph and paragraph (3) of 48 this subdivision, not more than fifteen per centum of the total net 49 square footage of any building or structure on such property was used 50 for manufacturing activities at any one or more times during the twen- 51 ty-four months immediately preceding the date of application for a 52 certificate of eligibility or (b) where not more than fifteen per centum 53 of the total net square footage of any building or structure on such 54 property was used for manufacturing activities at any one or more times

S. 8578 239 1 during the sixty months immediately preceding the date of application 2 for a certificate of eligibility if such property is located, in whole 3 or in part, in the area in the borough of Manhattan lying south of the 4 center line of 96th Street; and (3) in the commercial revitalization 5 area, and with respect to an application for a certificate of eligibil- 6 ity filed on or after July first, two thousand, "commercial property" 7 means nonresidential property on which will exist after completion of 8 commercial construction work, a building or structure used for the 9 buying, selling or otherwise providing of goods or services including 10 hotel services, or for other lawful business, commercial or manufactur- 11 ing activities. 12 f-1. "Commercial revitalization area" means any district that is zoned 13 C4, C5, C6, M1, M2 or M3 in accordance with the zoning resolution in any 14 area of the city. 15 g. "Deferral area" means an area in which deferral of payment of real 16 property taxes in accordance with section 11-257 of this part shall be 17 available to a recipient who has performed commercial construction work. 18 h. "Excluded area" means each area specified in paragraphs (1), (2) 19 and (3) of subdivision d of section 11-258 of this part. 20 i. "Exemption base". (1) For purposes of computing the exemption 21 pursuant to subdivision a, b, c or d of section 11-257 of this part, 22 "exemption base" shall mean, with respect to property that is the 23 subject of a certificate of eligibility with an effective date of June 24 thirtieth, nineteen hundred ninety-two or before: (a) for the first, 25 second and third taxable years following the effective date of a certif- 26 icate of eligibility, the assessed value of improvements made since the 27 effective date of such certificate which are attributable exclusively to 28 commercial or industrial construction work described in approved plans; 29 and (b) for all other years, the assessed value of such improvements 30 which have been made before the fourth taxable status date following the 31 effective date of such certificate. 32 (2) For purposes of computing the exemption pursuant to subdivision c, 33 d or e of section 11-257 of this part, "exemption base" shall mean, with 34 respect to property that is the subject of a certificate of eligibility 35 with an effective date of July first, nineteen hundred ninety-two or 36 after: (a) for the first through fifth taxable years following the 37 effective date of a certificate of eligibility, the assessed value of 38 improvements made since the effective date of such certificate which are 39 attributable exclusively to commercial or renovation construction work 40 described in approved plans; and (b) for all other years, the assessed 41 value of such improvements which have been made before the sixth taxable 42 status date following the effective date of such certificate. 43 (3) For purposes of computing the exemption pursuant to subdivision a 44 or b of section 11-257 of this part, "exemption base" shall mean, with 45 respect to property that is the subject of a certificate of eligibility 46 with an effective date of July first, nineteen hundred ninety-two or 47 after: (a) for the first through fifth taxable years following the 48 effective date of a certificate of eligibility, the assessed value of 49 improvements made since the effective date of such certificate which are 50 attributable exclusively to commercial or industrial construction work 51 described in approved plans plus any equalization increases or minus any 52 equalization decreases in the assessed value of the property so improved 53 (excluding the land) occurring subsequent to the effective date of such 54 certificate; and (b) for all other years, the assessed value of such 55 improvements made before the sixth taxable status date following the 56 effective date of such certificate plus any equalization increases or

S. 8578 240 1 minus any equalization decreases in the assessed value of the property 2 so improved (excluding the land) occurring subsequent to the effective 3 date of such certificate but before the fourteenth taxable status date 4 following the effective date of such certificate. For purposes of the 5 preceding sentence: no adjustment shall be made to the assessed value of 6 the improvements referred to in subparagraphs (a) and (b) of this para- 7 graph for any portion of an equalization increase or decrease which is 8 being phased in pursuant to section eighteen hundred five of the real 9 property tax law subsequent to the effective date of the certificate of 10 eligibility if such increase or decrease occurred prior to such effec- 11 tive date; with respect to any taxable year, an adjustment for an equal- 12 ization increase or decrease shall reflect only the portion of such 13 increase or decrease which is being phased in during such taxable year 14 or which was phased in during a prior taxable year; no adjustment for an 15 equalization decrease shall reduce the exemption base to an amount less 16 than the assessed value of the improvements referred to in subparagraphs 17 (a) and (b) of this paragraph, and, to the extent that any such decrease 18 would reduce the exemption base below such amount, such decrease shall 19 reduce the taxable portion of the assessed value; and no adjustment 20 shall be made for an equalization increase or decrease if the improve- 21 ments referred to in subparagraphs (a) and (b) of this paragraph do not 22 result in a physical increase in the assessed value of the property. 23 (4) Notwithstanding paragraph one of this subdivision, for purposes of 24 computing the exemption pursuant to subdivision a of section 11-257 of 25 this part, "exemption base" shall mean, with respect to industrial prop- 26 erty that is located in the area in Staten Island; and that is the 27 subject of a certificate of eligibility with an effective date after 28 December thirty-first, nineteen hundred eighty-nine and before July 29 first, nineteen hundred ninety-two: (a) for the first, second and third 30 taxable years following the effective date of a certificate of eligibil- 31 ity, the assessed value of improvements made since the effective date of 32 such certificate which are attributable exclusively to industrial 33 construction work described in approved plans; and (b) for all other 34 years, the assessed value of such improvements made before the fourth 35 taxable status date following the effective date of such certificate 36 plus any equalization increases or minus any equalization decreases in 37 the assessed value of the property so improved (excluding the land) 38 occurring subsequent to the fourth taxable status date following the 39 effective date of such certificate but before the fourteenth taxable 40 status date following the effective date of such certificate. For 41 purposes of the preceding sentence: no adjustment shall be made to the 42 assessed value of the improvements referred to in subparagraphs (a) and 43 (b) of this paragraph for any portion of an equalization increase or 44 decrease which is being phased in pursuant to section eighteen hundred 45 five of the real property tax law subsequent to the effective date of 46 the certificate of eligibility if such increase or decrease occurred 47 prior to such effective date; with respect to any taxable year, an 48 adjustment for an equalization increase or decrease shall reflect only 49 the portion of such increase or decrease which is being phased in during 50 such taxable year or which was phased in during a prior taxable year; no 51 adjustment for an equalization decrease shall reduce the exemption base 52 to an amount less than the assessed value of the improvements referred 53 to in subparagraphs (a) and (b) of this paragraph, and, to the extent 54 that any such decrease would reduce the exemption base below such 55 amount, such decrease shall reduce the taxable portion of the assessed 56 value; and no adjustment shall be made for an equalization increase or

S. 8578 241 1 decrease if the improvements referred to in subparagraphs (a) and (b) of 2 this paragraph do not result in a physical increase in the assessed 3 value of the property. 4 (5) For purposes of computing the exemption: (a) pursuant to subdivi- 5 sion e.1 of section 11-257 of this part, "exemption base" shall mean, 6 with respect to property that is the subject of a certificate of eligi- 7 bility with an effective date of July first, nineteen hundred ninety- 8 five or after and that is located in the new construction exemption area 9 specified in paragraph one of subdivision e of section 11-258 of this 10 part: for any taxable year following the effective date of a certificate 11 of eligibility, the assessed value of improvements made since the effec- 12 tive date of such certificate which are attributable exclusively to the 13 construction of a new building or structure that meets the requirements 14 set forth in subdivision i of section 11-259 of this part as described 15 in approved plans, provided such improvements are made within thirty-six 16 months of the effective date of such certificate or by December thirty- 17 first, nineteen hundred ninety-nine, whichever is earlier; and (b) 18 pursuant to subdivision e.1 of section 11-257 of this part, "exemption 19 base" shall mean, with respect to property that is the subject of a 20 certificate of eligibility with an effective date of July first, nine- 21 teen hundred ninety-five or after and that is located in the new 22 construction exemption area specified in paragraph two of subdivision e 23 of section 11-258 of this part: for any taxable year following the 24 effective date of a certificate of eligibility, the assessed value of 25 improvements made since the effective date of such certificate which are 26 attributable exclusively to the construction of a new building or struc- 27 ture that meets the requirements set forth in subdivision i of section 28 11-259 of this part as described in approved plans, provided such 29 improvements are made within forty-two months of the effective date of 30 such certificate. 31 (6) For purposes of this subdivision "equalization increase or 32 decrease" means an increase or decrease in the assessed value of proper- 33 ty which is not attributable to construction work, fire, demolition, 34 destruction or other change in the physical characteristics of the prop- 35 erty (excluding gradual physical deterioration or obsolescence), or to a 36 change in the description or boundaries of the property. 37 j. "Industrial construction work" means the construction of a new 38 building or structure or the modernization, rehabilitation, expansion or 39 improvement of an existing building or structure for use as industrial 40 property. 41 k. "Industrial property" means nonresidential property on which will 42 exist after completion of industrial construction work a building or 43 structure wherein at least seventy-five per centum of the total net 44 square footage is used or immediately available and held out for use for 45 manufacturing activities involving the assembly of goods or the fabri- 46 cation or processing of raw materials. 47 l. "Initial assessed value" means the lesser of: (1) the taxable 48 assessed value of real property appearing on the books of the annual 49 record of the assessed valuation of real property on the effective date 50 of a recipient's certificate of eligibility; or (2) the assessed value 51 to which such assessment is thereafter reduced pursuant to application 52 to the tax commission or court order. Where the real property is used 53 for both residential and nonresidential purposes on the effective date 54 of such certificate of eligibility, the initial assessed value of such 55 real property, determined as provided in the preceding sentence, shall 56 be apportioned between the residential and nonresidential portions ther-

S. 8578 242 1 eof in such manner as shall properly reflect the initial assessed value 2 of each such portion. Such apportionment shall be in accordance with 3 rules promulgated by the department of finance. 4 m. "Manufacturing activity" means an activity involving the assembly 5 of goods or the fabrication or processing of raw materials. 6 n. "Minimum required expenditure" means expenditure for commercial, 7 renovation or industrial construction work in an amount equal to twenty 8 per centum of the initial assessed value; provided, however, that with 9 respect to a recipient who filed an application on or after July first, 10 nineteen hundred ninety-five for a certificate of eligibility for indus- 11 trial construction work or for commercial construction work in a special 12 exemption area or a regular exemption area, minimum required expenditure 13 means expenditure for such work in an amount equal to ten per centum of 14 the initial assessed value; provided, however, that with respect to a 15 recipient who filed an application on or after July first, nineteen 16 hundred ninety-five for a certificate of eligibility for industrial 17 construction work and for the purpose of receiving an abatement of real 18 property taxes in accordance with paragraph (3) of subdivision a of 19 section 11-257 of this part, minimum required expenditure means expendi- 20 ture for such work in an amount equal to twenty-five per centum of the 21 initial assessed value; and provided further that if the department of 22 finance, after consultation with the deputy mayor for finance and 23 economic development, determines that a greater expenditure is required 24 to encourage significant industrial and commercial development it may 25 establish by rule a higher percentage of initial assessed value, not to 26 exceed fifty per centum thereof, as the minimum required expenditure. 27 Expenditure for residential construction work shall not be included in 28 the minimum required expenditure; provided, however, that for mixed-use 29 property, expenditures for construction work related to the common areas 30 and systems of such property shall be allocated, in accordance with 31 rules promulgated by the department of finance, between the residential 32 and nonresidential portions of the property. If real property was used 33 for both residential and nonresidential purposes on the effective date 34 of the certificate of eligibility, the initial assessed value of such 35 real property, for purposes of this subdivision, shall be the initial 36 assessed value apportioned to the nonresidential portions thereof. 37 o. "Person" means an individual, corporation, partnership, associ- 38 ation, agency, trust, estate, foreign or domestic government or subdivi- 39 sion thereof, or other entity. 40 p. "Recipient" means an applicant to whom a certificate of eligibility 41 has been issued pursuant to this part, or the successor in interest of 42 such applicant, provided that where a person who has entered into a 43 lease or purchase agreement with the owner or lessee of exempt property 44 has been a co-applicant, such person or the successor in interest of 45 such person shall be the recipient. 46 q. "Regular exemption area" means an area in which a regular exemption 47 from taxes in accordance with section 11-257 of this part shall be 48 available to a recipient who performs commercial construction work. 49 r. "Residential construction work" means any construction, moderniza- 50 tion, rehabilitation, expansion or improvement of dwelling units other 51 than dwelling units in a hotel. 52 s. "Residential property" means property, other than property used for 53 hotel purposes, on which exists, or will exist upon completion of 54 construction work, a building or structure used for residential 55 purposes.

S. 8578 243 1 t. "Restricted activity" means any entertainment activity which the 2 department of finance has identified in regulations promulgated pursuant 3 to this part as an activity which, in the public interest, should not be 4 encouraged through the benefits of this part. 5 u. "Special exemption area" means an area in which the commission has 6 determined that a special exemption from real property taxes in accord- 7 ance with subdivision b of section 11-257 of this part shall be avail- 8 able to a recipient who performs commercial construction work and, in 9 addition, means the area specified in paragraph four of subdivision c of 10 section 11-258 of this part. 11 v. "Mixed-use property" means property on which exists, or will exist 12 upon completion of construction work, a building or structure used for 13 both residential and nonresidential purposes. 14 w. "Renovation construction work" means the modernization, rehabili- 15 tation, expansion or improvement of an existing building or structure, 16 or portion thereof, for use as commercial property in a renovation 17 exemption area where such modernization, rehabilitation, expansion or 18 improvement is physically and functionally integrated with the existing 19 building or structure, or portion thereof, does not increase the bulk of 20 the existing building or structure by more than thirty per centum and 21 does not increase the height of the existing building or structure by 22 more than thirty per centum. 23 x. "Renovation exemption area" means the area specified in paragraph 24 (4) of subdivision d of section 11-258 of this part in which a reno- 25 vation exemption from taxes in accordance with subdivision e of section 26 11-257 of this part shall be available to a recipient who performs reno- 27 vation construction work. 28 y. "New construction exemption areas" means the areas specified in 29 subdivision e of section 11-258 of this part in which an exemption from 30 real property taxes in accordance with subdivision e.1 of section 11-257 31 of this part shall be available to a recipient who constructs a new 32 building or structure that meets the requirements set forth in subdivi- 33 sion i of section 11-259 of this part. 34 § 11-257 Real property tax exemption; deferral of tax payments. The 35 city shall be divided into six classes of areas as provided in this part 36 and pursuant to designation of areas to be made by the temporary commer- 37 cial incentive area boundary commission. Within such areas, the follow- 38 ing benefits shall be available to qualified recipients: 39 a. (1) A recipient who, following the effective date of a certificate 40 of eligibility, has performed industrial construction work in any area 41 of the city shall be eligible for an exemption from real property taxes 42 as follows: For the first thirteen tax years, the recipient shall be 43 exempt from taxation on one hundred per centum of the exemption base. 44 For the following nine tax years, the recipient shall be exempt from 45 taxation on a percentage of the exemption base beginning at ninety per 46 centum thereof in the fourteenth tax year and decreasing by ten per 47 centum of said exemption base each year. 48 The following table shall illustrate the computation of the exemption 49 for industrial construction work: 50 Tax year following effective 51 date of certificate 52 of eligibility: Amount of exemption: 53 1 through 13 ............. Tax on 100% of exemption base 54 14 ........................ Tax on 90% of exemption base 55 15 ........................ Tax on 80% of exemption base

S. 8578 244 1 16 ........................ Tax on 70% of exemption base 2 17 ........................ Tax on 60% of exemption base 3 18 ........................ Tax on 50% of exemption base 4 19 ........................ Tax on 40% of exemption base 5 20 ........................ Tax on 30% of exemption base 6 21 ........................ Tax on 20% of exemption base 7 22 ........................ Tax on 10% of exemption base 8 (2) Notwithstanding paragraph one of this subdivision, a recipient who 9 filed an application for a certificate of eligibility for industrial 10 construction work in any area of such city on or after July first, nine- 11 teen hundred ninety-five, and who, following the effective date of such 12 certificate of eligibility, has performed such industrial construction 13 work shall be eligible for an exemption from real property taxes as 14 follows: for the first sixteen tax years, the recipient shall be exempt 15 from taxation on one hundred per centum of the exemption base. For the 16 following nine tax years, the recipient shall be exempt from taxation on 17 a percentage of the exemption base beginning at ninety per centum there- 18 of in the seventeenth tax year and decreasing by ten per centum of said 19 exemption base each year. 20 The following table shall illustrate the computation of the exemption 21 for industrial construction work pursuant to this paragraph: 22 Tax year following effective 23 date of certificate of 24 eligibility: Amount of exemption: 25 1 through 16.............. Tax on 100% of exemption base 26 17 ........................ Tax on 90% of exemption base 27 18 ........................ Tax on 80% of exemption base 28 19 ........................ Tax on 70% of exemption base 29 20 ........................ Tax on 60% of exemption base 30 21 ........................ Tax on 50% of exemption base 31 22 ........................ Tax on 40% of exemption base 32 23 ........................ Tax on 30% of exemption base 33 24 ........................ Tax on 20% of exemption base 34 25 ........................ Tax on 10% of exemption base 35 (3)(a) A recipient who filed an application for a certificate of 36 eligibility for industrial construction work in any area of such city on 37 or after July first, nineteen hundred ninety-five, and who, following 38 the effective date of such certificate of eligibility, both commenced 39 and completed such work, shall be eligible for an abatement of real 40 property taxes as follows: for the first tax year immediately following 41 completion of such work, and for the second, third and fourth tax years 42 following completion of such work, the abatement shall equal fifty per 43 centum of the real property tax that was imposed on the property which 44 is the subject of the certificate of eligibility for the tax year imme- 45 diately preceding the effective date of such certificate of eligibility, 46 provided, however, that if such property was fully or partially exempt 47 from real property taxes during such tax year, then the abatement shall 48 equal fifty per centum of the real property tax that would have been 49 imposed on such property but for such full or partial exemption. For the 50 fifth and sixth tax years, the abatement shall equal forty per centum of 51 such amount; for the seventh and eighth tax years, the abatement shall 52 equal thirty per centum of such amount; for the ninth and tenth tax 53 years, the abatement shall equal twenty per centum of such amount; and

S. 8578 245 1 for the eleventh and twelfth tax years, the abatement shall equal ten 2 per centum of such amount. Notwithstanding any inconsistent provision of 3 this paragraph, a recipient shall not be eligible for an abatement for 4 the first tax year following completion of such work, unless the recipi- 5 ent submits proof satisfactory to the department of finance that such 6 work was completed on or before the taxable status date for such first 7 tax year no later than thirty days after such taxable status date. Where 8 the recipient fails to submit such proof in accordance with the forego- 9 ing sentence, a recipient shall not be eligible for an abatement until 10 the second tax year following completion of such work. In such case, a 11 recipient shall submit proof satisfactory to the department of finance 12 that such work was completed on or before the taxable status date for 13 such first tax year no later than thirty days after the taxable status 14 date for such second tax year. A recipient whose abatement begins in the 15 second tax year following completion of such work shall not thereby have 16 his or her twelve-year benefit period shortened. 17 The following table shall illustrate the computation of the abatement 18 for industrial construction work pursuant to this paragraph: 19 Tax year following completion 20 of industrial construction 21 work: Amount of abatement: 22 1 ...................................................50% 23 2 ...................................................50% 24 3 ...................................................50% 25 4 ...................................................50% 26 5 ...................................................40% 27 6 ...................................................40% 28 7 ...................................................30% 29 8 ...................................................30% 30 9 ...................................................20% 31 10 ..................................................20% 32 11 ..................................................10% 33 12 ..................................................10% 34 (b) If, due to a determination of the department of finance or tax 35 commission of such city or a court, the real property tax imposed on 36 such property for the tax year immediately preceding the effective date 37 of such certificate of eligibility is changed, then any abatement that 38 was granted in accordance with this paragraph prior to such reduction 39 shall be recalculated and any abatement to be granted in accordance with 40 this paragraph shall be based on the real property tax imposed on such 41 property for the tax year immediately preceding the effective date of 42 such certificate of eligibility, as changed by such determination. The 43 amount equal to the difference between the abatement originally granted 44 and the abatement as so recalculated shall be deducted from any refund 45 otherwise payable or remission otherwise due as a result of a change due 46 to such determination, and any balance of such amount remaining unpaid 47 after making any such deduction shall be paid to the department of 48 finance within thirty days from the date of mailing by the department of 49 finance of a notice of the amount payable. Such amount payable shall 50 constitute a tax lien on such property as of the date of such notice 51 and, if not paid within such thirty-day period, penalty and interest at 52 the rate applicable to delinquent taxes on such property shall be 53 charged and collected on such amount from the date of such notice to the 54 date of payment.

S. 8578 246 1 (c) No property which is the subject of a certificate of eligibility 2 pursuant to this part shall receive more than one abatement pursuant to 3 this part and no abatement shall exceed one consecutive twelve-year 4 period as specified in subparagraph (a) of this paragraph. 5 (d) In no event shall an abatement granted pursuant to this part 6 exceed in any tax year the real property taxes imposed on the property 7 which is the subject of a certificate of eligibility pursuant to this 8 part. 9 (e) For the purpose of calculating an abatement of real property taxes 10 pursuant to this part, where a tax lot contains more than one building 11 or structure and not all of the buildings or structures comprising such 12 tax lot are the subject of a certificate of eligibility for industrial 13 construction work pursuant to this part, the real property taxes imposed 14 on such tax lot for the year immediately preceding the effective date of 15 such certificate of eligibility shall be apportioned among the build- 16 ings, structures and land comprising such tax lot and only such real 17 property taxes as are allocable to the property which is the subject of 18 the certificate of eligibility pursuant to this part shall be abated in 19 accordance with this paragraph. Such apportionment shall be in accord- 20 ance with rules promulgated by the department of finance. 21 (f) A recipient who filed an application for a certificate of eligi- 22 bility for industrial construction work in the commercial revitalization 23 area on or after July first, two thousand, and who, following the effec- 24 tive date of such certificate of eligibility, both commenced and 25 completed such work, shall be eligible for an abatement of real property 26 taxes in accordance with subparagraph (a) of this paragraph, provided, 27 however, that where the total net square footage of the industrial prop- 28 erty used or immediately available and held out for use for manufactur- 29 ing activities involving the assembly of goods or the fabrication or 30 processing of raw materials is less than seventy-five per centum of the 31 total net square footage of the industrial property, the abatement of 32 real property taxes shall be determined in accordance with rules promul- 33 gated by the department of finance. Notwithstanding the foregoing 34 sentence, no such abatement shall be allowed where the total net square 35 footage of the industrial property used or immediately available and 36 held out for use for such manufacturing activities after completion of 37 industrial construction work is less than the total net square footage 38 used or immediately available and held out for use for such manufactur- 39 ing activities before the commencement of such construction work. For 40 purposes of this subparagraph only, the term "industrial construction 41 work" shall mean the modernization, rehabilitation, expansion or 42 improvement of an existing building or structure for use as industrial 43 property and the term "industrial property" shall mean nonresidential 44 property on which will exist after completion of industrial construction 45 work a building or structure wherein at least twenty-five per centum of 46 the total net square footage is used or immediately available and held 47 out for use for manufacturing activities involving the assembly of goods 48 or the fabrication or processing of raw materials. 49 b. (1) A recipient who, following the effective date of a certificate 50 of eligibility, has performed commercial construction work in a special 51 exemption area shall be eligible for an exemption from real property 52 taxes as follows: For the first thirteen tax years, the recipient shall 53 be exempt from taxation on one hundred per centum of the exemption base. 54 For the following nine tax years, the recipient shall be exempt from 55 taxation on a percentage of the exemption base beginning at ninety per

S. 8578 247 1 centum thereof in the fourteenth tax year and decreasing by ten per 2 centum of said exemption base each year. 3 The following table shall illustrate the computation of the exemption 4 for commercial construction work in a special exemption area: 5 Tax year following effective 6 date of certificate 7 of eligibility: Amount of exemption: 8 1 through 13 ............. Tax on 100% of exemption base 9 14 ........................ Tax on 90% of exemption base 10 15 ........................ Tax on 80% of exemption base 11 16 ........................ Tax on 70% of exemption base 12 17 ........................ Tax on 60% of exemption base 13 18 ........................ Tax on 50% of exemption base 14 19 ........................ Tax on 40% of exemption base 15 20 ........................ Tax on 30% of exemption base 16 21 ........................ Tax on 20% of exemption base 17 22 ........................ Tax on 10% of exemption base 18 (2) Notwithstanding paragraph one of this subdivision, a recipient who 19 filed an application for a certificate of eligibility for commercial 20 construction work in a special exemption area on or after July first, 21 nineteen hundred ninety-five, and who, following the effective date of 22 such certificate of eligibility, has performed such commercial 23 construction work shall be eligible for an exemption from real property 24 taxes as follows: For the first sixteen tax years, the recipient shall 25 be exempt from taxation on one hundred per centum of the exemption base. 26 For the following nine tax years, the recipient shall be exempt from 27 taxation on a percentage of the exemption base beginning at ninety per 28 centum thereof in the seventeenth tax year and decreasing by ten per 29 centum of said exemption base each year. 30 The following table shall illustrate the computation of the exemption 31 for commercial construction work in a special exemption area pursuant to 32 this paragraph: 33 Tax year following effective 34 date of certificate 35 of eligibility: Amount of exemption: 36 1 through 16 ............. Tax on 100% of exemption base 37 17 ........................ Tax on 90% of exemption base 38 18 ........................ Tax on 80% of exemption base 39 19 ........................ Tax on 70% of exemption base 40 20 ........................ Tax on 60% of exemption base 41 21 ........................ Tax on 50% of exemption base 42 22 ........................ Tax on 40% of exemption base 43 23 ........................ Tax on 30% of exemption base 44 24 ........................ Tax on 20% on exemption base 45 25 ........................ Tax on 10% of exemption base 46 c. (1) A recipient who, following the effective date of a certificate 47 of eligibility, has performed commercial construction work in a regular 48 exemption area shall be eligible for an exemption from real property 49 taxes as follows: For the first eight tax years, the recipient shall be 50 exempt from taxation on one hundred per centum of the exemption base. 51 For the following four tax years, the recipient shall be exempt from 52 taxation on a percentage of the exemption base beginning at eighty per

S. 8578 248 1 centum thereof in the ninth tax year and decreasing by twenty per centum 2 of said exemption base each year. 3 The following table shall illustrate the computation of the exemption 4 for commercial construction work in a regular exemption area: 5 Tax year following effective 6 date of certificate 7 of eligibility: Amount of exemption: 8 1 through 8 .............. Tax on 100% of exemption base 9 9 ......................... Tax on 80% of exemption base 10 10 ........................ Tax on 60% of exemption base 11 11 ........................ Tax on 40% of exemption base 12 12 ........................ Tax on 20% of exemption base 13 (2) Notwithstanding paragraph one of this subdivision, a recipient who 14 filed an application for a certificate of eligibility for commercial 15 construction work in a regular exemption area on or after July first, 16 nineteen hundred ninety-five, and who, following the effective date of 17 such certificate of eligibility, has performed such commercial 18 construction work shall be eligible for an exemption from real property 19 taxes as follows: For the first eleven tax years, the recipient shall be 20 exempt from taxation on one hundred per centum of the exemption base. 21 For the following four tax years, the recipient shall be exempt from 22 taxation on a percentage of the exemption base beginning at eighty per 23 centum thereof in the twelfth tax year and decreasing by twenty per 24 centum of said exemption base each year. 25 The following table shall illustrate the computation of the exemption 26 for commercial construction work in a regular exemption area pursuant to 27 this paragraph: 28 Tax year following effective 29 date of certificate 30 of eligibility: Amount of exemption: 31 1 through 11 ............. Tax on 100% of exemption base 32 12 ........................ Tax on 80% of exemption base 33 13 ........................ Tax on 60% of exemption base 34 14 ........................ Tax on 40% of exemption base 35 15 ........................ Tax on 20% of exemption base 36 d. Except as provided in paragraphs two and three of subdivision d of 37 section 11-258 of this part, a recipient who, following the effective 38 date of a certificate of eligibility, has performed commercial 39 construction work in a deferral area shall be eligible for a deferral of 40 tax payments as follows: For the first three tax years following the 41 effective date of a certificate of eligibility, the tax payment on one 42 hundred per centum of the exemption base shall be deferred. For the 43 following four tax years, the tax payment on a percentage of the 44 exemption base beginning at eighty per centum thereof in the fourth tax 45 year and decreasing by twenty per centum each year shall be deferred. 46 The total amount of tax payments deferred pursuant to this part shall be 47 paid subsequently over the course of ten tax years as follows: Commenc- 48 ing in the eleventh tax year following the effective date of the certif- 49 icate of eligibility, through and including the twentieth tax year 50 following such effective date, an amount equal to ten per centum of the 51 total amount of tax payments deferred pursuant to this section shall be

S. 8578 249 1 added to the amount of tax otherwise assessed and payable in each such 2 tax year on the property subject to such deferral. 3 The following table shall illustrate the computation of deferral and 4 payment of taxes for commercial construction work in a deferral area: 5 Tax year following 6 effective date of 7 certificate of 8 eligibility: Amount of tax payments to be deferred or paid: 9 1 through 3 ......Deferral of tax payment on 100% of the exemption base 10 4 ................ Deferral of tax payment on 80% of the exemption base 11 5 ................ Deferral of tax payment on 60% of the exemption base 12 6 ................ Deferral of tax payment on 40% of the exemption base 13 7 ................ Deferral of tax payment on 20% of the exemption base 14 8 through 10 ..... No tax payments are to be deferred and no deferred 15 tax payments are required to be made 16 11 through 20 .... Payment each year of 10% of total dollar amount of 17 tax payments deferred pursuant to this part 18 e. A recipient who, following the effective date of a certificate of 19 eligibility, has performed renovation construction work in a renovation 20 exemption area shall be eligible for an exemption from real property 21 taxes as follows: For the first eight tax years, the recipient shall be 22 exempt from taxation on one hundred per centum of the exemption base. 23 For the following four tax years, the recipient shall be exempt from 24 taxation on a percentage of the exemption base beginning at eighty per 25 centum thereof in the ninth tax year and decreasing by twenty per centum 26 of said exemption base each year. 27 The following table shall illustrate the computation of the exemption 28 for renovation construction work in a renovation exemption area: 29 Tax year following effective 30 date of certificate 31 of eligibility: Amount of exemption: 32 1 through 8 .............. Tax on 100% of exemption base 33 9 ......................... Tax on 80% of exemption base 34 10 ........................ Tax on 60% of exemption base 35 11 ........................ Tax on 40% of exemption base 36 12 ........................ Tax on 20% of exemption base 37 e.1. A recipient who, following the effective date of a certificate of 38 eligibility, constructs a new building or structure that meets the 39 requirements set forth in subdivision i of section 11-259 of this part 40 in the new construction exemption area specified in paragraph one, two 41 or three of subdivision e of section 11-258 of this part shall be eligi- 42 ble for an exemption from real property taxes as follows: for the first 43 four tax years, the recipient shall be exempt from taxation on one 44 hundred per centum of the exemption base. For the following four tax 45 years, the recipient shall be exempt from taxation on a percentage of 46 the exemption base beginning at eighty per centum thereof in the fifth 47 tax year and decreasing by twenty per centum of said exemption base each 48 year. 49 The following table shall illustrate the computation of the exemption 50 for the construction of a new building or structure that meets the 51 requirements set forth in subdivision i of section 11-259 of this part

S. 8578 250 1 in the new construction exemption area specified in paragraph one, two 2 or three of subdivision e of section 11-258 of this part: 3 Tax year following effective 4 date of certificate 5 of eligibility: Amount of exemption: 6 1 through 4 .............. Tax on 100% of exemption base 7 5 ......................... Tax on 80% of exemption base 8 6 ......................... Tax on 60% of exemption base 9 7 ......................... Tax on 40% of exemption base 10 8 ......................... Tax on 20% of exemption base 11 f. There shall be no exemption from or deferral of payment of real 12 property taxes available pursuant to this part to any person who 13 performs commercial or renovation construction work in an excluded area. 14 g. The benefits of this part shall be granted exclusively for indus- 15 trial, commercial or renovation construction work described in approved 16 plans. No benefits shall be granted for residential construction work. 17 Any parcel which is partly located in an excluded area shall be deemed 18 to be entirely located in such area. 19 h. No benefits pursuant to this part shall be granted for work which 20 is the subject of a certificate of eligibility issued pursuant to part 21 three of this subchapter. 22 § 11-258 Temporary commercial incentive area boundary commission; 23 classes of area; excluded areas. a. There shall be a temporary commer- 24 cial incentive area boundary commission to consist of the deputy mayor 25 for economic development and planning, the commissioner of finance, the 26 chair of the city planning commission, the director of management and 27 budget, the borough presidents, the speaker of the city council and a 28 public member appointed by the mayor to serve at the mayor's pleasure. 29 Each member except the public member shall have the power to designate 30 an alternate to represent him or her at commission meetings to exercise 31 all the rights and powers of such member, including the right to vote, 32 provided that such designation be made in writing to the chair of the 33 commission. The deputy mayor for economic development and planning shall 34 be the chair of the commission. Each borough president shall be entitled 35 to vote only on the designation of areas within his or her borough. 36 Commission members who shall be officers or employees of the city shall 37 serve without compensation but shall be reimbursed for expenses neces- 38 sarily incurred in the performance of their duties. Any other commission 39 member shall receive as exclusive compensation for his or her services 40 one hundred dollars per diem, provided, however, that the total compen- 41 sation paid to any such member shall not exceed twelve hundred dollars 42 for any calendar year. A majority of members of such commission entitled 43 to vote on a matter shall constitute a quorum for such issue. Decisions 44 shall be made by majority vote of those present entitled to vote on a 45 matter. 46 b. (1) The commission shall meet in nineteen hundred ninety-two, nine- 47 teen hundred ninety-five and nineteen hundred ninety-nine to determine 48 the boundaries of the various areas which it is authorized to designate 49 pursuant to this section. The areas designated by the commission in 50 effect as of December thirty-first, nineteen hundred ninety-one shall 51 remain in effect until the first taxable status date after the city 52 council approves a new designation pursuant to paragraph four of this 53 subdivision.

S. 8578 251 1 (2) Not later than October first of each year when areas are to be 2 designated, the commission shall publish notice of proposed boundaries 3 of areas to be designated, and the date, not earlier than five nor later 4 than fifteen days following the publication of such notice, on which the 5 commission will hold a public hearing to hear all persons interested in 6 the designation of areas. The notice required by this paragraph shall be 7 published in the City Record and a newspaper of general circulation in 8 the city, and copies thereof shall be forwarded to each council member 9 and community board. 10 (3) The commission shall make such designation, and notify the city 11 council of such designation, not later than November first of each year 12 when areas are to be designated. The designation shall be effective as 13 provided in paragraph four of this subdivision. 14 (4) Within thirty days after the first stated meeting of the city 15 council following the receipt of notice of such designation, the city 16 council may, by majority vote, disapprove such designation. If, within 17 such thirty-day period, the city council fails to act or fails to act by 18 the required vote, the city council shall be deemed to have approved 19 such designation. Such designation shall be effective as of the first 20 taxable status date after the city council approves such designation and 21 shall remain in effect until the first taxable status date after the 22 city council approves a new designation pursuant to this paragraph. 23 c. (1) The commission may designate any area other than the area lying 24 south of the center line of ninety-sixth street in the borough of 25 Manhattan to be a special exemption area if it determines that market 26 conditions in the area are such that the availability of a special 27 exemption is required in order to encourage commercial construction work 28 in such area. In making such determination, the commission shall consid- 29 er, among other factors, the existence in such area of a special need 30 for commercial and job development, high unemployment, economic distress 31 or unusually large numbers of vacant, underutilized, unsuitable or 32 substandard structures, or other substandard, unsanitary, deteriorated 33 or deteriorating conditions, with or without tangible blight. 34 (2) Any area in the city, which the commission has not designated as a 35 special exemption area shall be a regular exemption area. 36 (3) On or after January first, nineteen hundred ninety-two, the 37 commission shall not designate any area to be either a deferral area or 38 an excluded area, nor shall the commission make any new designation in 39 any urban renewal area designated pursuant to article fifteen of the 40 general municipal law so as to reduce the level of benefits available 41 pursuant to this title in such area. 42 (4) Notwithstanding any other provision of this part, any area in the 43 city designated as an empire zone in accordance with article eighteen-b 44 of the general municipal law, which the commission has not designated as 45 a special exemption area, shall be a special exemption area as of July 46 first, nineteen hundred ninety-five or as of the date of the designation 47 of such area as an empire zone, whichever is later. 48 § 11-259 Eligibility for benefits. a. A recipient of a certificate of 49 eligibility with an effective date of June thirtieth, nineteen hundred 50 ninety-two or before must make one-half the minimum required expenditure 51 within eighteen months of the effective date of such recipient's certif- 52 icate of eligibility, and make the minimum required expenditure within 53 thirty-six months of the effective date of such certificate to be eligi- 54 ble to receive the benefits of this part. A recipient of a certificate 55 of eligibility with an effective date of July first, nineteen hundred 56 ninety-two or after must make one-half the minimum required expenditure

S. 8578 252 1 within thirty months of the effective date of such recipient's certif- 2 icate of eligibility, and make the minimum required expenditure within 3 sixty months of the effective date of such certificate to be eligible to 4 receive the benefits of this part. Any recipient who shall fail to make 5 such expenditures shall become ineligible and shall pay, with interest, 6 any taxes for which an exemption or deferral was claimed pursuant to 7 this section. This subdivision shall not apply to the recipient of a 8 certificate of eligibility for construction of a new building or struc- 9 ture that meets the requirements set forth in subdivision i of section 10 11-259 of this part in a new construction exemption area. 11 b. No benefits pursuant to this part shall be granted for construction 12 work on any condominium unit unless such unit is in a building or struc- 13 ture which, if viewed as a whole and as if it were under single owner- 14 ship, would qualify as commercial or industrial property. The minimum 15 required expenditure applicable to any recipient of a certificate of 16 eligibility for construction work on a condominium unit shall be equal 17 to the minimum expenditure which would apply if a certificate of eligi- 18 bility were issued for construction work on the entire property where 19 such unit is located. Nothing in this subdivision shall be construed to 20 prevent owners of condominium units in the same property from forming an 21 association to be a recipient. This subdivision shall not apply to any 22 applicant whose property would be, or recipient whose property is, the 23 subject of a certificate of eligibility with an effective date of July 24 first, nineteen hundred ninety-two or after. 25 c. No benefits pursuant to this part shall be granted for any 26 construction work unless the applicant filed an application for such 27 benefits on or before the date of issuance of a building permit for such 28 work. The requirements of this subdivision may be satisfied where the 29 applicant's architect, contractor or other representative authorized to 30 file the application for such building permit files with the department 31 of finance on behalf of the applicant a preliminary application contain- 32 ing such information as the department of finance shall prescribe by 33 regulation. 34 d. No benefits pursuant to this part shall be granted to any recipient 35 for construction work on property any part of which is to be used for a 36 restricted activity. 37 e. No benefits pursuant to this part shall be granted for any 38 construction work unless the applicant shall file, together with the 39 application, an affidavit setting forth the following information: 40 (1) a statement that within the seven years immediately preceding the 41 date of application for a certificate of eligibility, neither the appli- 42 cant, nor any person owning a substantial interest in the property as 43 defined in paragraph four of this subdivision, nor any officer, director 44 or general partner of the applicant or such person was finally adjudi- 45 cated by a court of competent jurisdiction to have violated section two 46 hundred thirty-five of the real property law or any section of article 47 one hundred fifty of the penal law or any similar arson law of another 48 state with respect to any building, or was an officer, director or 49 general partner of a person at the time such person was finally adjudi- 50 cated to have violated such law; 51 (2) a statement setting forth any pending charges alleging violation 52 of section two hundred thirty-five of the real property law or any 53 section of article one hundred fifty of the penal law or any similar 54 arson law of another jurisdiction with respect to any building by the 55 applicant or any person owning a substantial interest in the property as

S. 8578 253 1 defined in paragraph four of this subdivision, or any officer, director 2 or general partner of the applicant or such person; and 3 (3) a statement that the applicant has posted notice in a conspicuous 4 place at the premises which are the subject of the application and 5 published notice in a newspaper of general circulation in the city, in 6 such form as shall be prescribed by the department of finance, stating 7 that persons having information concerning any violation by the appli- 8 cant or a person having a substantial interest in the property as 9 defined in paragraph four of this subdivision has violated section two 10 hundred thirty-five of the real property law or any section of article 11 one hundred fifty of the penal law or any similar arson law of another 12 jurisdiction may submit such information to the department of finance to 13 be considered in determining the applicant's eligibility for benefits. 14 (4) "Substantial interest" as used in this subdivision shall mean 15 ownership and control of an interest of ten per centum or more in a 16 property or of any person owning a property. 17 f. If any person described in the statement required by paragraph two 18 of subdivision e of this section is finally adjudicated by a court of 19 competent jurisdiction to be guilty of any charge listed in such state- 20 ment, the recipient shall cease to be eligible for benefits pursuant to 21 this part and shall pay with interest any taxes for which an exemption, 22 abatement or deferral was claimed pursuant to this part. 23 g. In addition to any other qualifications for exemption from or 24 abatement or deferral of payment of taxes set forth in this part, an 25 applicant must be: 26 (1) obligated to pay real property tax on the property for which an 27 exemption, abatement or deferral is sought, whether such obligation 28 arises because of record ownership of such property, or because the 29 obligation to pay such tax has been assumed by contract; or 30 (2) the record owner or lessee of property which is exempt from real 31 property taxation who has entered into an agreement to sell or lease 32 such property to another person. Such person shall be a co-applicant 33 with such owner or lessee. 34 h. A co-applicant with a public entity shall be an eligible recipient 35 pursuant to this part, provided that for such period as the property 36 which is the subject of the certificate of eligibility is exempt from 37 real property taxation because it is owned or controlled by a public 38 entity no benefits shall be available to such recipient pursuant to this 39 part. Such recipient shall receive benefits pursuant to this part when 40 such property ceases to be eligible for exemption pursuant to other 41 provisions of law, as follows: the recipient shall, commencing with the 42 date such tax exemption ceases, and continuing until the expiration of 43 the benefit period pursuant to this part, receive the benefits to which 44 such recipient is entitled in the corresponding tax year pursuant to 45 this part. 46 i. (1) No benefits pursuant to this part shall be granted for 47 construction of a new building or structure in a new construction 48 exemption area unless such building or structure meets the requirements 49 set forth in subparagraphs two and three of this paragraph and, in addi- 50 tion, meets at least two of the five requirements set forth in subpara- 51 graphs four through eight of this paragraph. 52 (2) The height of at least fifty per centum of the floors in such 53 building or structure shall be not less than twelve feet, nine inches 54 measured from the top of the slab comprising the floor to the bottom of 55 the slab comprising the ceiling;

S. 8578 254 1 (3) Such building or structure shall be served by fiber optic telecom- 2 munications wiring and shall contain vertical penetrations for the 3 distribution of fiber optic cabling to individual tenants on each floor; 4 (4) The total square footage of such building or structure is not less 5 than five hundred thousand gross square feet; 6 (5) A minimum of two hundred thousand gross square feet or twenty-five 7 per centum of such building or structure is comprised of floors of not 8 less than forty thousand gross square feet; 9 (6) At least ten per centum of the gross square footage of such build- 10 ing or structure is comprised of floors that contain no more than eight 11 structural columns, excluding any columns within the core or on the 12 periphery of such building or structure; 13 (7) The electrical capacity of such building or structure is not less 14 than six watts per net square foot; 15 (8) Emergency backup power sufficient to accommodate a need of six 16 watts per net square foot is available in at least two hundred thousand 17 gross square feet or twenty-five per centum of such building or struc- 18 ture. 19 j. No benefits pursuant to this part shall be granted for construction 20 work performed pursuant to a building permit issued after July thirty- 21 first, two thousand eight, except that if a building permit is issued on 22 or before July thirty-first, two thousand eight for construction work on 23 a building or structure described in an application for a certificate of 24 eligibility filed on or before June thirtieth, two thousand eight, 25 construction work performed as described in such application pursuant to 26 any additional building permit issued on or after August first, two 27 thousand eight shall be eligible for benefits pursuant to this part in 28 accordance with this subdivision. 29 (1) Except as provided in paragraph two of this subdivision, all 30 construction work performed pursuant to any such application shall be 31 completed on or before December thirty-first, two thousand thirteen. No 32 benefits shall be granted for construction work performed after such 33 date, and any exemption granted pursuant to this part in relation to 34 property on which such construction work was performed shall not exceed 35 the amount of the exemption in effect for such property on the tax roll 36 for which the taxable status date is January fifth, two thousand four- 37 teen. 38 (2) All construction work performed pursuant to any such application 39 for the construction of a new building or structure in the new 40 construction exemption area specified in paragraph three of subdivision 41 e of section 11-258 of this part shall be completed in accordance with 42 paragraph four of subdivision i of this section and, if not completed in 43 accordance with such subparagraph, shall not be eligible for benefits 44 pursuant to this part. 45 (3) For purposes of this subdivision, construction work as described 46 in an application for a certificate of eligibility shall be deemed 47 completed on the date on which the department of buildings issues a 48 temporary or final certificate of occupancy or, if such construction 49 work does not require the issuance of a certificate of occupancy, the 50 date on which the applicant and the applicant's architect or profes- 51 sional engineer for such construction work submit to the department of 52 finance an affidavit certifying that such construction work has been 53 completed. For purposes of this subdivision, a demolition permit shall 54 be deemed to be a building permit issued for construction work. 55 § 11-260 Application for certificate of eligibility. a. Application 56 for a certificate of eligibility pursuant to this part may be made imme-

S. 8578 255 1 diately and continuing until June thirtieth, two thousand eight; and 2 provided, further, however, that no benefits pursuant to this part shall 3 be granted for construction work performed pursuant to a building permit 4 issued after July thirty-first, two thousand eight. Such application 5 shall state whether it is for industrial, commercial or renovation 6 construction work, and shall be filed with the department of finance. In 7 addition to any other information required by such department, the 8 application shall include cost estimates or bids for the proposed 9 construction and an affidavit of a professional engineer or architect of 10 the applicant's choice, certifying that detailed plans for the 11 construction work have been submitted to the department of buildings. 12 Such application shall also state that the applicant agrees to comply 13 with and be subject to the rules issued from time to time by the depart- 14 ment of finance to secure compliance with all applicable city, state and 15 federal laws or which implement mayoral directives and executive orders 16 designed to ensure equal employment opportunity. Such application shall 17 also certify that all taxes currently due and owing on the property 18 which is the subject of the application have been paid or are currently 19 being paid in timely installments pursuant to written agreement with the 20 department of finance. 21 b. The burden of proof shall be on the applicant to show by clear and 22 convincing evidence that the requirements for granting an exemption from 23 or abatement or deferral of payment of taxes pursuant to this part have 24 been satisfied. The department of finance shall have the authority to 25 require that statements in connection with the application be made under 26 oath. 27 c. Upon receipt of an application, the department of finance shall 28 send written notice thereof to the council member representing the 29 district where the proposed construction work is to take place. 30 d. The department of finance shall issue a certificate of eligibility 31 upon determining that the applicant satisfies the requirements for 32 industrial, commercial or renovation construction work in an area where 33 benefits are available for such work. Such certificate shall state 34 whether such benefits are to be granted for industrial, commercial or 35 renovation construction work, and in which class of area the property is 36 located. The effective date of such certificate, except as provided in 37 paragraph two or paragraph four of subdivision c of section 11-259 of 38 this part, shall be the earlier of (1) the date on which a building 39 permit for the construction work is issued by the department of build- 40 ings, or (2) the last day before the effective date of any designation 41 of boundaries by the commission which changes the class of area in which 42 the property is located so as to reduce the level of benefits for 43 commercial construction work on such property. Where the effective date 44 of the certificate of eligibility is July first, nineteen hundred nine- 45 ty-two or after, the benefits granted for industrial, commercial or 46 renovation construction work pursuant to this part shall be in accord- 47 ance with the provisions of this part. Where the effective date of the 48 certificate of eligibility is June thirtieth, nineteen hundred ninety- 49 two or before, the benefits granted for industrial or commercial 50 construction work pursuant to this part shall be in accordance with the 51 provisions of this part as it was in effect until June thirtieth, nine- 52 teen hundred ninety-two. No recipient whose property is the subject of 53 a certificate of eligibility for commercial construction work in a 54 deferral area shall be eligible to apply for a certificate of eligibil- 55 ity for renovation construction work on the same property, where the 56 renovation construction work is the same as, or similar to, the commer-

S. 8578 256 1 cial construction work for which the deferral area certificate was 2 issued, until three years after the effective date of the deferral area 3 certificate. No recipient shall receive a tax deferral and a tax 4 exemption for the same expenditure on eligible construction work. 5 e. A copy of the certificate of eligibility shall be filed by the 6 department of finance in the manner prescribed for recording a mortgage 7 pursuant to section two hundred ninety-one-d of the real property law. 8 f. The department of finance may provide by rule for reasonable admin- 9 istrative charges or fees necessary to defray expenses in administering 10 the benefit program provided by this part. 11 § 11-261 Reporting requirement; termination of benefits. a. Upon 12 approval by the department of buildings of the plans submitted in 13 connection with the building permit and any amendments to such plans, 14 the recipient shall file with the department of finance a narrative 15 description of such approved plans describing the industrial, commercial 16 or renovation construction work for which such recipient seeks benefits 17 pursuant to this part. 18 b. For the duration of the benefit period the recipient shall file 19 annually with the department of finance, on or before the taxable status 20 date, a certificate of continuing use stating the purposes for which the 21 property described in the certificate of eligibility is being used and 22 the net square footage allotted to each such purpose. Such certificate 23 of continuing use shall be on a form prescribed by the department of 24 finance and shall state the total number of workers employed on the 25 property and the number of such workers who are city residents. The 26 department of finance shall have authority to terminate benefits pursu- 27 ant to this part upon failure of a recipient to file such certificate by 28 the taxable status date. The burden of proof shall be on the recipient 29 to establish continuing eligibility for benefits and the department of 30 finance shall have the authority to require that statements made in such 31 certificate shall be made under oath. 32 c. A recipient shall file an amendment to the latest certificate of 33 continuing use prior to (1) converting square footage within property 34 which is the subject of a certificate of eligibility for industrial 35 construction work from use for the manufacturing activities described in 36 such certificate of continuing use where such conversion results in less 37 than sixty-five per centum of total net square footage being used or 38 held out for use for manufacturing activities; or (2) converting any 39 portion of property which is the subject of a certificate of eligibility 40 to use for any restricted activity or as residential property. 41 d. No later than eighteen months after the effective date of a certif- 42 icate of eligibility with an effective date of June thirtieth, nineteen 43 hundred ninety-two or before, the recipient shall present evidence to 44 the department of finance demonstrating that the recipient has made 45 one-half of the minimum required expenditure. Not later than thirty-six 46 months after the effective date of such certificate, such recipient 47 shall present evidence to such department demonstrating that the recipi- 48 ent has made the minimum required expenditure. Not later than thirty 49 months after the effective date of a certificate of eligibility with an 50 effective date of July first, nineteen hundred ninety-two or after, the 51 recipient shall present evidence to the department of finance demon- 52 strating that the recipient has made one-half of the minimum required 53 expenditure. Such evidence shall be presented in the form and manner 54 prescribed by such department. The burden of proof shall be on the 55 recipient to show by clear and convincing evidence that the required 56 expenditures have been made. This subdivision shall not apply to the

S. 8578 257 1 recipient of a certificate of eligibility for construction of a new 2 building or structure that meets the requirements set forth in subdivi- 3 sion i of section 11-259 of this part in a new construction exemption 4 area. 5 e. A recipient of a certificate of eligibility for construction of a 6 new building or structure in a new construction exemption area shall 7 present evidence to the department of finance demonstrating that the 8 requirements of subdivision i of section 11-259 of this part have been 9 met. Such evidence shall be presented in the form and manner and at the 10 time prescribed by such department. The burden of proof shall be on the 11 recipient to show by clear and convincing evidence that such require- 12 ments have been met. 13 § 11-262 Conversion of property. a. Any recipient whose property is 14 the subject of a certificate of eligibility for commercial or renovation 15 construction work, and who, prior to the expiration of the benefit peri- 16 od, uses such property as industrial property, shall continue to receive 17 benefits for commercial or renovation construction work as the case may 18 be. 19 b. Any recipient whose property is the subject of a certificate of 20 eligibility for industrial construction work, and who, prior to the 21 expiration of the benefit period, uses such property as commercial prop- 22 erty, shall cease to be eligible for further exemption or abatement for 23 industrial construction work as of the last date to which such recipient 24 proves by clear and convincing evidence that such property was used as 25 industrial property, and shall pay with interest any taxes for which an 26 exemption or abatement was claimed after such date, except that: 27 (1) a recipient of a certificate of eligibility for industrial 28 construction work in a special exemption area who would have been eligi- 29 ble to receive a certificate of eligibility for commercial construction 30 work at the time such recipient applied for benefits shall continue to 31 receive an exemption for industrial construction; and 32 (2) a recipient of a certificate of eligibility for industrial 33 construction work in a regular exemption area who would have been eligi- 34 ble to receive a certificate of eligibility for commercial construction 35 work at the time such recipient applied for benefits shall, commencing 36 with the date of conversion to commercial property and continuing until 37 the expiration of the benefit period for commercial construction work, 38 receive any exemption which such recipient would have received in the 39 corresponding tax year pursuant to a certificate of eligibility for 40 commercial construction work; and 41 (3) a recipient of a certificate of eligibility for industrial 42 construction work in any area of the city on whose property at least 43 sixty-five per centum of the net square footage continues to be used or 44 held out for use for manufacturing activities after conversion to 45 commercial property, shall not be required to pay the pro rata share of 46 tax for which an exemption was claimed during the tax year in which such 47 conversion occurred. 48 c. Except as provided in subdivision d of this section, any recipient 49 whose property is the subject of a certificate of eligibility for 50 commercial, industrial or renovation construction work, and who uses 51 such property as residential property or for any restricted activity 52 prior to the expiration of the benefit period, shall cease to be eligi- 53 ble for further exemption, abatement or deferral as of the date such 54 property was first used as residential property or for any restricted 55 activity. In the case of property in an area that was designated as an 56 exemption area at the time the certificate of eligibility was issued,

S. 8578 258 1 such recipient shall pay with interest any taxes for which an exemption 2 was claimed after such date, including the pro rata share of tax for 3 which any exemption was claimed during the tax year in which such use 4 occurred. In the case of industrial property, such recipient shall pay 5 with interest any taxes for which an exemption or abatement was claimed 6 after such date, including the pro rata share of tax for which any 7 exemption or abatement was claimed during the tax year in which such use 8 occurred. In the case of property in an area that was designated as a 9 deferral area at the time the certificate of eligibility was issued, all 10 deferred tax payments on the property shall become due and payable imme- 11 diately. 12 d. Notwithstanding subdivision c of this section, any recipient whose 13 property is the subject of a certificate of eligibility for commercial 14 or renovation construction work with an effective date of July first, 15 nineteen hundred ninety-two or after, and who, prior to the expiration 16 of the benefit period, uses a portion of such property as residential 17 property, shall cease to be eligible for further exemption for commer- 18 cial or renovation construction work for that portion of such property 19 used as residential property as of the date such portion of the property 20 was first used as residential property. Such recipient shall pay, with 21 interest, any taxes for which an exemption was claimed after such date 22 attributable to that portion of the property used as residential proper- 23 ty, including the pro rata share of tax for which such exemption was 24 claimed during the tax year in which such use occurred. Such recipient 25 shall continue to receive an exemption for commercial or renovation 26 construction work for that portion of the property which continues to be 27 used as commercial property. 28 § 11-263 Administration of the benefit program. The department of 29 finance shall have, in addition to any other functions, powers and 30 duties which have been or may be conferred on it by law, the following 31 functions, powers and duties: 32 (1) To publicize the availability of benefits pursuant to this part 33 for industrial, commercial and renovation construction work. 34 (2) To receive and review applications for certificates of eligibil- 35 ity, issue such certificates where authorized pursuant to section 11-260 36 of this part, and record the issuance of such certificates as prescribed 37 in such section. 38 (3) To receive evidence of expenditures made for construction, and 39 where such expenditures do not equal the amount required to qualify for 40 exemption from or abatement or deferral of tax payments to take appro- 41 priate action, including but not limited to denying, reducing, suspend- 42 ing, terminating or revoking benefits pursuant to this part. 43 (4) To enter and inspect property to determine whether it is indus- 44 trial or commercial or mixed-use and to determine whether (a) any such 45 property is being used for any restricted use, or (b) any property which 46 is the subject of a certificate of eligibility for industrial 47 construction work is being used as commercial property, or (c) any 48 industrial or commercial property is being used as residential or mixed- 49 use property, or (d) all or part of the nonresidential portion of mixed- 50 use property is being used as residential property. 51 (5) To collect all real property taxes for which payment is deferred 52 pursuant to this part. 53 (6) To collect all real property taxes, with interest, due and owing 54 as a result of reduction, suspension, termination or revocation of any 55 exemption from or abatement or deferral of taxes granted pursuant to 56 this part.

S. 8578 259 1 (7) To make and promulgate regulations to carry out the purposes of 2 this part including, but not limited to, regulations requiring appli- 3 cants to publish notice of their applications, defining manufacturing 4 and commercial activities and specifying the nature of work for which 5 expenses may be included in the minimum required expenditure, provided, 6 however, that any regulation increasing the minimum required expenditure 7 shall not apply to any person who is a recipient on the effective date 8 of such regulation. Such regulations shall include a requirement that 9 with respect to the construction work recipients and their contractors 10 shall be equal opportunity employers and shall also provide that persons 11 employed in the construction work shall implement a training program for 12 economically disadvantaged persons enrolled or eligible to be enrolled 13 in training programs approved by the department of labor, with partic- 14 ular reference to city residents. 15 § 11-264 Tax lien; interest rate. a. All taxes plus interest required 16 to be paid retroactively pursuant to this part shall constitute a tax 17 lien as of the date it is determined such taxes and interest are owed. 18 All interest shall be calculated from the date the taxes would have been 19 due but for the exemption, abatement or deferral claimed pursuant to 20 this part at three per centum above the applicable rate of interest 21 imposed by the city generally for non-payment of real property tax on 22 such date. 23 b. All taxes for which payment is deferred pursuant to section 11-257 24 of this part shall constitute a tax lien as of the date they are due and 25 payable in accordance with the provisions of that section. 26 § 11-265 Penalties for non-compliance, false statements and omissions. 27 a. The department of finance may deny, reduce, suspend, revoke or termi- 28 nate any exemption from or abatement or deferral of tax payments pursu- 29 ant to this part whenever: 30 (1) a recipient fails to comply with the requirements of this part or 31 the rules and regulations promulgated by the department of finance 32 pursuant thereto; or 33 (2) an application, certificate, report or other document delivered by 34 an applicant or recipient hereunder contains a false or misleading 35 statement as to a material fact or omits to state any material fact 36 necessary in order to make the statements therein not false or mislead- 37 ing, and may declare any applicant or recipient who makes such false or 38 misleading statement or omission to be ineligible for future exemption, 39 abatement or deferral pursuant to this part for the same or other prop- 40 erty. 41 b. Notwithstanding any other law to the contrary, a recipient shall be 42 personally liable for any taxes owed pursuant to this part whenever such 43 recipient fails to comply with such law and rules or makes such false or 44 misleading statement or omission, and the department of finance deter- 45 mines that such act was due to the recipient's willful neglect, or that 46 under the circumstances such act constituted a fraud on the department 47 of finance or a buyer or prospective buyer of the property. The remedy 48 provided herein for an action in personam shall be in addition to any 49 other remedy or procedure for the enforcement of collection of delin- 50 quent taxes provided by any general, special or local law. Any lease 51 provision which obligates a tenant to pay taxes which become due because 52 of willful neglect or fraud by the recipient, or otherwise relieve or 53 indemnify the recipient from any personal liability arising hereunder, 54 shall be void as against public policy except where the imposition of 55 such taxes or liability is occasioned by actions of the tenant in 56 violation of the lease.

S. 8578 260 1 § 11-266 Code violations; suspension of benefits. a. If a court, or 2 the environmental control board of the preceding municipality with 3 respect to matters within its jurisdiction, finds that at the property 4 which is the subject of a certificate of eligibility there has been a 5 violation of any of the provisions of the building, fire and air 6 pollution control codes of the preceding municipality set forth in 7 subdivision b of this section, all benefits pursuant to such certificate 8 shall be suspended unless within one hundred eighty days after the 9 department of finance has sent notice of such finding to the recipient, 10 and all other persons having a financial interest in the property who 11 have filed a timely request for such notice in such form as may be 12 prescribed by the department of finance, the recipient submits to the 13 department of finance, certification from the department of buildings, 14 the fire department or the department of environmental protection 15 respectively that the underlying code violation has been cured. If the 16 recipient fails to submit the required certification within the one 17 hundred eighty day period, the period of suspension shall be effective 18 retroactively to the time of the finding by the court or the environ- 19 mental control board. The suspension of benefits shall continue until 20 the recipient submits to the department of finance the required certif- 21 ication that the violation has been cured. 22 If the original finding of violation or the denial of certification is 23 appealed and a court or appropriate governmental agency finally deter- 24 mines that the finding of violation or denial of certification was 25 invalid, any benefits lost pursuant to this section to which the recipi- 26 ent was entitled shall be restored retroactively. 27 As applied to a recipient who is eligible for deferral of tax payments 28 pursuant to subdivision d of section 11-257 of this part, suspension of 29 benefits shall be deferred by operation of such section and interest at 30 the rate charged by the department of finance for overdue taxes shall be 31 charged on the amount of any tax payments already deferred by operation 32 of such section. The interest charged shall accrue from the beginning of 33 the period of suspension. 34 b. The provisions of subdivision a of this section shall apply to 35 violations of the following provision of the code of the preceding muni- 36 cipality: 37 (1) section 27-4260 of the preceding municipality; 38 (2) section 27-4265 of the preceding municipality; 39 (3) section 27-4267 of the preceding municipality; 40 (4) section 27-954 of the preceding municipality; 41 (5) section 27-339 of the preceding municipality; 42 (6) subdivision (c) of section 27-353 of the preceding municipality; 43 (7) paragraph twelve of subdivision (f) of section 27-972 of the 44 preceding municipality; 45 (8) paragraph ten of subdivision (g) of section 27-972 of the 46 preceding municipality; 47 (9) subdivision (c) of section 27-975 of the preceding municipality; 48 (10) subdivision (c) of section 27-989 of the preceding munici- 49 pality; 50 (11) the following provisions to the extent applicable to cabarets 51 as defined in article two of subchapter two of the building code of 52 the preceding municipality: 53 (a) section 27-542 of the preceding municipality; 54 (b) subparagraph d of paragraph two of subdivision (b) of section 55 27-547 of the preceding municipality;

S. 8578 261 1 (c) paragraph three of subdivision (a) of section 27-549 of the 2 preceding municipality; 3 (d) subdivision (b) of section 27-549 of the preceding municipality; 4 (12) section 27-127 of the preceding municipality when the violation 5 concerns an unsafe condition on a facade of a building which exceeds 6 six stories in height; 7 (13) section five hundred one of reference standard 13-1 of the 8 preceding municipality; 9 (14) section one thousand three of reference standard 13-1 of the 10 preceding municipality; 11 (15) paragraph six of subdivision (b) of section 24-178 of the 12 preceding municipality; and 13 (16) section 24-185 of the preceding municipality. 14 § 11-267 Annual report. The department of finance shall submit an 15 annual report to the council, on April first of each year, concerning 16 the status of the program established pursuant to this part and its 17 effects in the city, including information on certificates of eligibil- 18 ity issued and jobs created in each area where benefits are available. 19 CHAPTER 3 20 TAX LIENS AND TAX SALES 21 § 11-301 When taxes, assessments, sewer rents, sewer surcharges and 22 water rents to be liens on land assessed. All taxes and all assessments 23 and all sewer rents, sewer surcharges and water rents, and the interest 24 and charges thereon, which may be laid or may have heretofore been laid, 25 upon any real estate now in the city, shall continue to be, until paid, 26 a lien thereon, and shall be preferred in payment to all other charges. 27 The words "water rents" whenever they are used in this chapter shall 28 include uniform annual charges and extra and miscellaneous charges for 29 the supply of water, charges in accordance with meter rates, minimum 30 charges for the supply of water by meter, annual service charges and 31 charges for meters and their connections and for their setting, repair 32 and maintenance, penalties and fines and all lawful charges for the 33 supply of water imposed pursuant to the New York city municipal water 34 finance authority act, which is set forth in title two-A of article five 35 of the public authorities law. Charges for expense of meters, their 36 connections, setting, repair or maintenance shall not be due or become a 37 charge or lien on the premises where a water meter shall be installed or 38 against which a charge shall be made, until such charge shall have been 39 definitely fixed by the commissioner of environmental protection, and an 40 entry of the amount thereof shall have been made with the date of such 41 entry in the book in which the charges for water supplied by meter 42 against such premises are to be entered. A charge in accordance with 43 meter rates or minimum charges for the supply of water measured by 44 meter, and a service charge shall not be due or become a lien or charge 45 upon the premises where such meter is installed until an entry shall 46 have been made indicating that such premises are metered, with the date 47 of such entry in the book in which the charges for water by meter meas- 48 urement against such premises are to be entered. The words "sewer rents" 49 when used in this chapter shall mean any rents or charges imposed pursu- 50 ant to section 24-514 of the code of the preceding municipality or 51 pursuant to the New York city municipal water finance authority act, 52 which is set forth in title two-A of article five of the public authori- 53 ties law. The words "sewer surcharges" when used in this chapter shall 54 mean the charges imposed pursuant to section 24-523 of the code of the 55 preceding municipality or pursuant to the New York city municipal water 56 finance authority act, which is set forth in title two-A of article five

S. 8578 262 1 of the public authorities law. Whenever an increase in the amount of 2 uniform annual charges or extra or miscellaneous charges shall have been 3 made or a charge shall have been made for water services for any build- 4 ing completed subsequent to the first day of January in each year, the 5 amount of such increase of the charge or new charge for such new build- 6 ing shall not be due or become a lien or charge against the premises 7 until the amounts thereof shall have been entered with the date of such 8 entries, respectively, in the books in which the uniform annual charges 9 and extra or miscellaneous charges against such premises are to be 10 entered. The words "tax lien" when used in this chapter shall mean the 11 lien arising pursuant to the provisions of this chapter or pursuant to 12 the New York city municipal water finance authority act, which is set 13 forth in title two-A of article five of the public authorities law, as a 14 result of the nonpayment of taxes, assessments, sewer rents, sewer 15 surcharges, water rents, any other charges that are made a lien subject 16 to the provisions of this chapter, the costs of any advertisements and 17 notices given pursuant to this chapter, any other charges that are due 18 and payable, a surcharge pursuant to section 11-332 of this chapter if 19 the tax lien is sold, interest and penalties thereon and the right of 20 the city to receive such amounts. The words "tax lien certificate" when 21 used in this chapter shall mean the instrument evidencing a tax lien and 22 executed by the commissioner of finance or his or her designee at such 23 time as such lien is transferred to a purchaser upon sale of such lien 24 by the city. 25 § 11-302 Interest rates not to be reduced. The commissioner of 26 finance shall not reduce the rate of interest upon any taxes or assess- 27 ment below the amount fixed by law. 28 § 11-302.1 Error in record of payment of tax or assessment. (a) If the 29 records of the department of finance show a charge as paid due to a 30 misapplied payment or other error, and the department later corrects the 31 records, interest shall not be imposed until after the department (i) 32 corrects the error and (ii) sends a statement of account or other simi- 33 lar bill or notice stating the amount due and when the charge must be 34 paid to avoid the accrual of interest. 35 (b) The provisions of this section shall not apply to an installment 36 of tax or an assessment for which payment, made electronically, by 37 check, or by other means, was dishonored. 38 (c) The provisions of this section shall not apply where the error in 39 the records of the department was made as a result of fraud or other 40 criminal conduct by the taxpayer or any person acting on his or her 41 behalf or at his or her request. 42 § 11-303 Arrears to be provided for in assessment rolls. There shall 43 be ruled in the yearly assessment rolls of the taxes in each section or 44 ward, a column headed "arrears," in which the commissioner of finance 45 shall annually before any taxes for the year are collected, cause to be 46 entered the word "arrears" opposite to the ward, lot, town, block and 47 map numbers on which any arrears of taxes, sewer rents, sewer surcharges 48 or water rents shall be due, or on which any assessment shall remain 49 unpaid which was due or confirmed one month prior to the first of July, 50 then last past. 51 § 11-304 Bills for taxes to show arrears. There shall be ruled a 52 column for "arrears" in every bill rendered for taxes for lots on which 53 such arrears or assessments, sewer rents, sewer surcharges or water 54 rents, and interest and penalties thereon, may be due as aforesaid, or 55 may have been sold and yet be redeemable, in which shall be written in a 56 conspicuous place, "arrears". The columns for arrears indicate lots

S. 8578 263 1 sold for arrears, or to be sold therefor; arrears to be paid and lots 2 redeemed at the office of the city collector. 3 § 11-305 Commissioner of finance to publish notice of confirmation of 4 assessments. It shall be the duty of the commissioner of finance to 5 give public notice, by advertisement, for at least ten days, in the City 6 Record and as soon as practicable and within ten days after the confir- 7 mation of any assessment, that the same has been confirmed, specifying 8 the title of such assessment, and the date of its confirmation, and also 9 the date of entry in the record of titles of assessments kept in the 10 department of finance, addressed as a class to all persons, owners of 11 property affected by any such assessment, that unless the amount 12 assessed for benefit on any person or property shall be paid within 13 ninety days after the date of the entry of any such assessment, interest 14 shall be thereafter collected thereon as provided in section 11-306 of 15 this chapter. 16 § 11-306 Interest to be charged if assessments unpaid for ninety days; 17 payment in installments. If any assessment shall remain unpaid for the 18 period of ninety days after the date of the entry thereof on the record 19 of titles of assessments, it shall be the duty of the commissioner of 20 finance or his or her designee to charge, collect and receive interest 21 thereon, at the rate of seven percent per annum, to be calculated to the 22 date of payment from the date when such assessment became a lien as 23 provided by section three hundred fourteen of the New York city charter 24 in force at the time of the adoption of the New York city charter by 25 referendum in the year nineteen hundred sixty-one, provided, however, 26 that the city collector shall accept and credit as payments on account 27 of assessments now or hereafter levied against any parcel or plot of 28 property, such sums of money not less than twenty-five dollars or multi- 29 ples thereof in amount as may be tendered for payment on account of any 30 assessment now or hereafter levied against any property. Upon requisi- 31 tion by the commissioner of finance for the assessed valuation of the 32 property affected by any assessment, the president of the tax commis- 33 sion, or any tax commissioner duly assigned by him or her, shall forth- 34 with certify the same to the commissioner of finance. 35 § 11-307 Payments in installments of assessments heretofore or here- 36 after confirmed. Upon the application in writing of the owner of a 37 parcel of real property affected by an unpaid assessment heretofore or 38 hereafter confirmed the amount of which is one hundred dollars or more, 39 the commissioner of finance shall divide the assessment upon such parcel 40 into fifteen parts or, if the application so requests, into five parts, 41 as nearly equal as may be, or if the amount of such assessment is fifty 42 dollars or more but less than one hundred dollars the commissioner of 43 finance shall divide the assessment upon such parcel into five parts as 44 nearly equal as may be. One part thereof in any event shall be due and 45 payable, and in each case as many more of such parts shall be due and 46 payable as years may have elapsed since the entry of such original 47 assessment for collection. Such parts thereof with interest at the rate 48 of seven percent per annum on the amount of the assessment unpaid shall 49 be paid at the time of application as a condition of the extension of 50 time of payment of the remainder as provided in this section. Upon 51 payment of such parts and interests, the balance of such assessments 52 shall cease to be a lien upon such real property except as hereinafter 53 provided; and the remaining parts shall be paid in annual installments 54 as herein provided. Of such installments the first, with interest at 55 the rate of four percent thereon, and on the installments thereafter to 56 become due, from the date of payment of the parts of such assessment

S. 8578 264 1 paid as hereinbefore provided, shall become due and payable and be a 2 lien on the real property assessed, on the next ensuing anniversary of 3 the date of entry of the assessment in the record of titles of assess- 4 ments confirmed; and one, with interest at the rate of four percent per 5 annum thereon and on the installments thereafter to become due shall 6 become due and payable and be a lien upon the real property assessed, 7 annually thereafter. After the time herein specified for annual 8 installments and interest to become due, the amount of the lien thereon 9 shall bear interest at the rate of seven percent per annum. Any 10 installment assessment shall not be further divided into installments. 11 The first installment of an assessment divided within the ninety-day 12 period provided by section 11-306 of this chapter during which assess- 13 ment may be paid without interest shall not be subject to interest, but 14 the second installment with interest at the rate of four percent per 15 annum from the original date of entry shall become due and payable and 16 be a lien upon the real property on the anniversary date of entry of the 17 assessment and the remaining installments with interest shall become due 18 and payable and be a lien on the real property as hereinbefore provided. 19 The installments not due with interest at the rate of four percent per 20 annum to the date of payment may be paid at any time. The provisions of 21 this chapter with reference to the sale of tax liens shall apply to the 22 several unpaid installments and the interest thereon in the same manner 23 as if each installment and the interest thereon had been imposed as an 24 assessment payable in one payment, at the time such installment became a 25 lien. In the event of the acquisition by condemnation by the city for 26 public purposes any property upon which there are installments not due, 27 such installments shall become due as of the date of the entry of the 28 final order of the supreme court or the confirmation of the report of 29 the commissioners in the condemnation proceedings, and shall be set off 30 against an award that may be made for the property acquired. 31 When an award for damage shall accrue to the same person who is or was 32 at the time the assessment was confirmed liable for the assessments for 33 benefit on the abutting property in the same proceedings, only the 34 portion of the assessment in excess of such award may be considered in 35 levying in installments under the provisions of this section. Except as 36 provided in this section, no such annual installment shall be a lien or 37 deemed to be an encumbrance upon the title to the real property assessed 38 until it becomes due as herein provided. 39 § 11-308 Apportionment of assessment. If a sum of money in gross has 40 been or shall be assessed upon any lands or premises in the city, any 41 person or persons claiming any divided or undivided part thereof may pay 42 such part of the sums of money so assessed, also of the interest and 43 charges due or charged thereon, as the commissioner of finance may deem 44 to be just and equitable. The remainder of the sum of money so 45 assessed, together with the interest and charges, shall be a lien upon 46 the residue of the land and premises only, and the tax lien upon such 47 residue may be sold in pursuance of the provisions of this chapter, to 48 satisfy the residue of such assessment, interest, or charges thereon, in 49 the same manner as though the residue of such assessment had been 50 imposed upon such residue of such land or premises. 51 § 11-309 Notifying taxpayers of assessments. a. The owner of any lot, 52 piece or parcel of land in the city of Staten Island or any person 53 interested in such lot, piece or parcel, may file with the department of 54 finance, a statement containing a brief description of such land, 55 together with the section, block and lot number thereof, or such other 56 identifying information as at the time is established by the department

S. 8578 265 1 of finance, and a statement of the applicant's interest therein, togeth- 2 er with a written request that such lot, piece or parcel of land be 3 registered in the name of the applicant. In such statement the applicant 4 shall designate a post office address to which notifications addressed 5 to such applicant shall be sent. A brief description of such lot, piece 6 or parcel of land corresponding to the description thereof in the state- 7 ment so filed, together with the name of the applicant and his or her 8 post office address and the date of such application, shall thereupon be 9 registered in the department of finance. 10 b. As soon as any assessment for a local improvement shall have been 11 confirmed, including assessments confirmed by a court of record, and the 12 list thereof shall have been entered and filed in the department of 13 finance, such assessment list shall be examined and thereupon, within 14 twenty days after such entry there shall be mailed a notice addressed to 15 each person in whose name any lot, piece or parcel of land, affected by 16 such assessment, is registered, at the post office address registered in 17 the records of the department of finance, which notice shall contain the 18 brief description of the lot, piece or parcel of land registered in the 19 name of the person to whom such notice is addressed, together with the 20 amount assessed thereon, date of entry, and title of the improvement for 21 which such assessment is made, and a statement of the rate of interest 22 or penalty imposed for the nonpayment of such assessment, and the date 23 from which the interest or penalty will be computed. Failure to comply 24 with the provisions herein however, shall in no manner affect the valid- 25 ity or collectability of any assessment heretofore or hereafter 26 confirmed, nor shall any claim arise or exist against the comptroller, 27 the commissioner of finance, or any officer of the city by reason of 28 such failure. 29 c. The commissioner of finance or his or her designee shall for the 30 purpose of this section provide appropriate records for each section of 31 the city, included within the respective boroughs, as the same shall 32 appear upon the tax maps of the city. 33 § 11-310 Water charges and sewer rents to be transmitted to commis- 34 sioner of finance. The commissioner of environmental protection shall 35 cause to be transmitted to the commissioner of finance an account of all 36 water rents, charges, fines and penalties and all sewer rents, charges, 37 fines and penalties as the same become due or accrue. 38 § 11-311 Sewer surcharges to be transmitted to commissioner of 39 finance. The commissioner of environmental protection shall cause to be 40 transmitted to the commissioner of finance an account of all sewer 41 surcharges, fines and penalties as the same become due or accrue. 42 § 11-312 Water rents; when payable; penalty for nonpayment. a. One- 43 half (i) the uniform annual water charges and extra and miscellaneous 44 charges for water not metered and (ii) annual service charges shall 45 become due and payable, in advance if entered on January first, nineteen 46 hundred seventy-four for the period commencing January first, nineteen 47 hundred seventy-four and ending June thirtieth, nineteen hundred seven- 48 ty-four. Commencing on June thirtieth, nineteen hundred seventy-four, 49 uniform annual water charges and extra and miscellaneous charges for 50 water not metered and annual service charges shall be due and payable in 51 advance on the thirtieth day of June in each year, if entered. If any of 52 such rents and charges which become due and payable on or before June 53 thirtieth, nineteen hundred seventy-six shall not have been paid to the 54 commissioner of finance or his or her designee on or before the last day 55 of the month following the month of entry, it shall be the duty of the 56 commissioner of finance or his or her designee to charge, collect and

S. 8578 266 1 receive interest thereon to be calculated at the rate of seven percent 2 per annum from the date when such rents and charges became due and paya- 3 ble to December thirty-first, nineteen hundred seventy-six, and at the 4 rate of fifteen percent per annum from January first, nineteen hundred 5 seventy-seven to the date of payment. If any of such rents and charges 6 which shall become due and payable on or after June thirtieth, nineteen 7 hundred seventy-seven are not paid to the commissioner of finance or his 8 or her designee on or before the last day of the month following the 9 month of entry, it shall be the duty of the commissioner of finance or 10 his or her designee to charge, collect and receive interest thereon to 11 be calculated at the rate of fifteen percent per annum from the date 12 when such rents and charges became due and payable to the date of 13 payment. If not so entered and payable, but entered at any time subse- 14 quent thereto, they shall be due and payable when entered and notice 15 thereof shall be mailed within five days of such entry to the premises 16 against which they are imposed addressed to either the owner or the 17 occupant and, if entered on or before December thirty-first, nineteen 18 hundred seventy-six but not paid on or before the last day of the month 19 following the month of entry, it shall be the duty of the commissioner 20 of finance or his or her designee to charge, collect and receive inter- 21 est thereon to be calculated at the rate of seven percent per annum from 22 the date of entry to December thirty-first, nineteen hundred seventy- 23 six, and at the rate of fifteen percent per annum from January first, 24 nineteen hundred seventy-seven to the date of payment; if entered on or 25 after January first, nineteen hundred seventy-seven but not paid on or 26 before the last day of the month following the month of entry, it shall 27 be the duty of the commissioner of finance or his or her designee to 28 charge, collect and receive interest thereon to be calculated at the 29 rate of fifteen percent per annum from the date of entry to the date of 30 payment. 31 b. All charges for meters and their connections and for their setting, 32 repair and maintenance, and all charges in accordance with meter rates 33 for supply of water measured by meter, including minimum charges for the 34 supply of water measured by meter, shall be due and payable when 35 entered, and notice thereof shall be mailed within five days of such 36 entry stating the amount due and the nature of the rent or charge to the 37 last known address of the person whose name appears on the record of 38 such rents and charges as being the owner, occupant or agent or, where 39 no name appears, to the premises addressed to either the owner or the 40 occupant, and if entered on or before December thirty-first, nineteen 41 hundred seventy-six but not paid on or before the last day of the month 42 following the month of entry, it shall be the duty of the commissioner 43 of finance or his or her designee to charge, collect and receive inter- 44 est thereon to be calculated at the rate of seven percent per annum from 45 the date of entry to December thirty-first, nineteen hundred seventy- 46 six, and at the rate of fifteen percent per annum from January first, 47 nineteen hundred seventy-seven to the date of payment; if entered on or 48 after January first, nineteen hundred seventy-seven but not paid on or 49 before the thirtieth day following the date of entry, it shall be the 50 duty of the commissioner of finance or his or her designee to charge, 51 collect and receive interest thereon to be calculated at the rate of 52 fifteen percent per annum from the date of entry to the date of payment. 53 § 11-313 Sewer rents; when payable; penalty for nonpayment. a. As used 54 in this section: 55 1. The term "metered premises" shall mean premises, or any part there- 56 of, (a) to which water is supplied by the municipal water supply system

S. 8578 267 1 or by a private water company, and (b) at which the quantity of water 2 supplied is measured by a water meter. 3 2. The term "unmetered premises" shall mean premises, or any part 4 thereof, (a) to which water is supplied by the municipal water supply 5 system or by a private water company, and (b) at which the quantity of 6 water supplied is not measured by a water meter. 7 b. The sewer rents charged against metered premises in accordance with 8 the provisions of paragraphs two and three of subdivision b of section 9 24-514 of the code of the preceding municipality and the rules duly 10 promulgated pursuant to such section, including the minimum rents for 11 the use of the sewer system, charged pursuant to such section and rules, 12 and the sewer rents charged against any premises in accordance with the 13 provisions of paragraphs four and five of subdivision b of section 14 24-514 of the code of the preceding municipality and rules duly promul- 15 gated pursuant to such section, including the minimum rents for the use 16 of the sewer system, charged pursuant to such section and rules shall 17 become due and shall become a charge or lien on the premises when the 18 amount thereof shall have been fixed by the commissioner of environ- 19 mental protection, and an entry thereof shall have been made against 20 such premises with the date of such entry, in the book in which sewer 21 rents are to be entered. The sewer surcharges charged against any prem- 22 ises pursuant to section 24-523 of the code of the preceding munici- 23 pality shall become due and shall become a charge or lien on the prem- 24 ises when the amount thereof shall have been fixed by the commissioner 25 of environmental protection and an entry thereof shall have been made 26 against such premises in the book in which sewer surcharges are to be 27 entered. A notice thereof, stating the amount due and the nature of the 28 rent, surcharge or charge shall be mailed, within five days after such 29 entry, to the last known address of the person whose name appears upon 30 the records in the office of the department of finance as being the 31 owner, occupant or agent or, where no name appears, to the premises 32 addressed to either the owner or the occupant. If such rent, surcharge 33 or charge shall have been entered on or before December thirty-first, 34 nineteen hundred seventy-six but not paid on or before the last day of 35 the month following the month of entry, it shall be the duty of the 36 commissioner of finance or his or her designee to charge, collect and 37 receive interest thereon to be calculated at the rate of seven percent 38 per annum from the date of entry to December thirty-first, nineteen 39 hundred seventy-six, and at the rate of fifteen percent per annum from 40 January first, nineteen hundred seventy-seven to the date of payment; if 41 entered on or after January first, nineteen hundred seventy-seven but 42 not paid on or before the thirtieth day following the date of entry, it 43 shall be the duty of the commissioner of finance or his or her designee 44 to charge, collect and receive interest thereon to be calculated at the 45 rate of fifteen percent per annum from the date of entry to the date of 46 payment. The rents or charges for the use of the sewer system charged 47 during any specified period of time pursuant to the provisions of 48 section 24-514 of the code of the preceding municipality and the rules 49 promulgated thereunder shall be computed, in accordance with the 50 provisions of such section and the rules duly promulgated thereunder, on 51 the basis of water rents or charges computed for the same period. 52 c. Sewer rents charged against unmetered premises in accordance with 53 the provisions of paragraphs two and three of subdivision b of section 54 24-514 of the code of the preceding municipality and the rules duly 55 promulgated pursuant to such section, for the use of the sewer system 56 during the one-year period commencing on the first day of July of each

S. 8578 268 1 year, shall be due and payable and shall become a charge or lien on the 2 premises on the first day of January following such first day of July, 3 if entered, except that commencing on June thirtieth, nineteen hundred 4 seventy-four such sewer rents shall be due and payable in advance on the 5 thirtieth day of June in each year, if entered, and shall become a 6 charge or lien on the premises on such date. If any of such rents or 7 charges which became due and payable on or before June thirtieth, nine- 8 teen hundred seventy-six shall not have been paid to the commissioner of 9 finance or his or her designee within thirty days after such first day 10 of January, or, commencing on the thirtieth day of June, nineteen 11 hundred seventy-four, on or before the last day of the month following 12 the month of entry, it shall be the duty of the commissioner of finance 13 or his or her designee to charge, collect and receive interest thereon 14 to be calculated at the rate of seven percent per annum from the date 15 when such charges became due and payable to December thirty-first, nine- 16 teen hundred seventy-six, and at the rate of fifteen percent per annum 17 from January first, nineteen hundred seventy-seven to the date of 18 payment. If any of such rents or charges which shall become due and 19 payable on or after June thirtieth, nineteen hundred seventy-seven are 20 not paid to the commissioner of finance or his or her designee on or 21 before the last day of the month following the month of entry, it shall 22 be the duty of the commissioner of finance or his or her designee to 23 charge, collect and receive interest thereon to be calculated at the 24 rate of fifteen percent per annum from the date when such rents or 25 charges became due and payable to the date of payment. If not so entered 26 and payable, but entered at any time subsequent thereto, they shall be 27 due and payable and shall become a charge or lien on the premises when 28 entered and notice thereof shall be mailed within five days after such 29 entry, to the last known address of the person whose name appears upon 30 the records in the department of finance as the owner or the occupant or 31 if no name appears, to the premises addressed to either the owner or 32 occupant. If any of such rents or charges which were entered on or 33 before December thirty-first, nineteen hundred seventy-six but not paid 34 on or before the last day of the month following the month of entry, it 35 shall be the duty of the commissioner of finance or his or her designee 36 to charge, collect and receive interest thereon to be calculated at the 37 rate of seven percent per annum from the date of entry to December thir- 38 ty-first, nineteen hundred seventy-six, and at the rate of fifteen 39 percent per annum from January first, nineteen hundred seventy-seven to 40 the date of payment; if entered on or after January first, nineteen 41 hundred seventy-seven but not paid on or before the last day of the 42 month following the month of entry, it shall be the duty of the commis- 43 sioner of finance or his or her designee to charge, collect and receive 44 interest thereon to be calculated at the rate of fifteen percent per 45 annum from the date of entry to the date of payment. The sewer rents 46 charged against unmetered premises for the use of the sewer system 47 during the one-year period commencing on the first day of July of each 48 year shall be computed in accordance with the provisions of section 49 24-514 of the code of the preceding municipality and the rules duly 50 promulgated thereunder, upon the basis of water rents or charges 51 computed for the same period. 52 d. Whenever an increase in the amount of the sewer rent charged 53 against unmetered premises shall have been made or a charge shall have 54 been made for sewer services for any building completed subsequent to 55 the first day of July in each year, the amount of such increase of the 56 charge or new charge for such new building shall not be due or become a

S. 8578 269 1 lien or charge against the premises until the amounts thereof shall have 2 been entered with the date of such entries, respectively, in the books 3 in which sewer rents charged against such premises are to be entered. 4 e. No later than the twenty-fifth day of May in each year, the banking 5 commission shall transmit a written recommendation to the council of a 6 proposed interest rate to be charged for nonpayment of sewer rents. In 7 making such recommendations the commission shall consider the prevailing 8 interest rates charged for commercial loans extended to prime borrowers 9 by commercial banks operating in the city and shall propose a rate of at 10 least six per centum per annum greater than such rates. The council may 11 by resolution adopt an interest rate to be charged for nonpayment of 12 sewer rents pursuant to section 11-224 of the code and, for nonpayment 13 of sewer rents that become due and payable on or after July first, two 14 thousand five, pursuant to section 11-224.1 of the code, and may specify 15 in such resolution the date on which such interest rate is to take 16 effect. 17 § 11-314 Notice of rules and regulations; penalty for nonpayment; 18 water supply cut off. The rates and charges for supply of water, the 19 annual service charges and minimum charges, the sewer rents, the sewer 20 surcharges, the rules and regulations concerning the use of water, all 21 other rules and regulations affecting users of water or concerning 22 charges for supply of water, restrictions of the use of water, installa- 23 tion of meters, and all rules and regulations affecting property 24 connected with the sewer system, penalties and fines for violations of 25 rules and regulations shall be printed on each bill and permit so far as 26 in the judgment of the commissioner of environmental protection they are 27 applicable. This section and such printing and the printing of this 28 section on such bills and permits shall be sufficient notice to owners, 29 tenants or occupants of premises to authorize the imposition and recov- 30 ery of any charges, surcharges and fines imposed under such rules and 31 regulations and of any penalties imposed in pursuance of this chapter in 32 addition to cutting off the supply of water. Where water charges payable 33 in advance or sewer rents or charges payable as provided in subdivision 34 c of section 11-313 of this chapter, are not paid within the period 35 covered by such charges or rents, and a notice of such nonpayment is 36 mailed by the commissioner of finance to the premises addressed to 37 "owner or occupant," the commissioner of environmental protection may 38 shut off the supply of water to such premises. Where water charges not 39 payable in advance or sewer rents, sewer surcharges or charges payable 40 as provided in subdivisions b and d of section 11-313 of this chapter 41 have been made by the department and remain unpaid for more than thirty 42 days or where the commissioner of environmental protection has certified 43 that there is a flagrant and continued violation of a provision or 44 provisions of section 24-523 of the code or of any rule or regulation 45 promulgated pursuant thereto or of any order of the commissioner of 46 environmental protection issued pursuant thereto, after notice thereof 47 mailed to the premises addressed to "owner or occupant," the commission- 48 er of environmental protection may shut off the supply of water to the 49 premises. 50 § 11-315 Enforcement of collection of sewer rents, sewer surcharges 51 and water rents. Sewer rents, sewer surcharges, charges, penalties and 52 fines, and interest thereon, and water rents, charges, penalties and 53 fines, and interest thereon, shall after they are payable to the commis- 54 sioner of finance or his or her designee be enforced in the manner 55 provided in this chapter and chapter four of this title. In addition to 56 collecting sewer rents, sewer surcharges, charges, penalties and fines

S. 8578 270 1 and interest thereon and water rents, charges, penalties and fines and 2 interest thereon in the manner provided in this chapter and chapter four 3 of this title, the city may maintain an action for their recovery 4 against the person for whose benefit or by whom the water is taken or 5 used or for whose benefit or by whom sewer service is used. 6 § 11-316 Bills of arrears of taxes, assessments, sewer rents, sewer 7 surcharges and water rents, any other charges that are made a lien 8 subject to the provisions of this chapter, and interest and penalties 9 thereon to be furnished when requested. The commissioner of finance or 10 his or her designee, upon the written request of the owner, the proposed 11 vendee under a contract of sale, a mortgagee, any person having a vested 12 or contingent interest in any lot or lots or their duly authorized 13 agent, or any person who has made a filing pursuant to section 11-309 of 14 this chapter shall furnish a bill of all arrears of taxes on any lot or 15 lots due prior to the first of September, then last past, of sewer 16 rents, sewer surcharges and water rents, assessments, any other charges 17 that are made a lien subject to the provisions of this chapter, and 18 interest and penalties thereon, which are due and payable. Upon the 19 payment of such bill which shall be called a bill of arrears the receipt 20 of the commissioner of finance or his or her designee thereon shall be 21 conclusive evidence of such payment. The commissioner of finance or his 22 or her designee shall cause to be kept an account of amounts so 23 collected, and the certificate of the commissioner of finance or his or 24 her designee, that there are no tax liens on such lot or lots, shall 25 forever free such lot or lots from all liens of taxes, sewer rents, 26 sewer surcharges or water rents, assessments, any other charges that are 27 made a lien subject to the provisions of this chapter, and interest and 28 penalties thereon that are due and payable prior to the date of such 29 receipt or certificate, but not from the lien of any tax lien duly sold 30 and not theretofore satisfied. 31 § 11-317 Fees for searches to be added to bills. Fees for such search- 32 es shall be included in the bills mentioned in section 11-316 of this 33 chapter, and also charges for certificates, which shall be given by the 34 commissioner of finance or his or her designee respecting lots on which 35 there may be no arrears when searches are required. Such fees shall be 36 regulated by local law. 37 § 11-318 Fee for certified search and bill of arrears. A fee of twen- 38 ty-five dollars shall be paid to and collected by the commissioner of 39 finance or his or her designee on his or her furnishing a certified 40 search and bill of arrears on each lot or piece of property mentioned or 41 referred to in the written request therefor. The commissioner of finance 42 shall be authorized to waive or reduce such fee in connection with any 43 sale of a tax lien or tax liens pursuant to this chapter. 44 § 11-319 Sales of tax liens. a. A tax lien or tax liens on a property 45 or any component of the amount thereof may be sold by the city as 46 authorized by subdivision b of this section, when such tax lien or tax 47 liens shall have remained unpaid in whole or in part for one year, 48 provided, however, that a tax lien or tax liens on any class one proper- 49 ty or any class two property that is a residential condominium or resi- 50 dential cooperative, as such classes of property are defined in subdivi- 51 sion one of section eighteen hundred two of the real property tax law, 52 may be sold by the city only when the real property tax component of 53 such tax lien or tax liens shall have remained unpaid in whole or in 54 part for three years and, in the case of any such class one property 55 that is not vacant land or any such class two property that is a resi- 56 dential condominium or residential cooperative, as such classes of prop-

S. 8578 271 1 erty are defined in subdivision one of section eighteen hundred two of 2 the real property tax law, equals or exceeds the sum of five thousand 3 dollars, or, in the case of any class two residential property owned by 4 a company organized pursuant to article eleven of the private housing 5 finance law that is not a residential condominium or a residential coop- 6 erative, as such classes of property are defined in subdivision one of 7 section eighteen hundred two of the real property tax law, for two 8 years, and equals or exceeds the sum of five thousand dollars, or, in 9 the case of abandoned class one property or abandoned class two property 10 that is a residential condominium or residential cooperative, for eigh- 11 teen months, and after such sale, shall be transferred, in the manner 12 provided by this chapter, and provided, further, however, that (i) the 13 real property tax component of such tax lien may not be sold pursuant to 14 this subdivision on any: (A) residential real property in class one that 15 is receiving an exemption pursuant to section 11-245.3 or 11-245.4 of 16 this title, or pursuant to section four hundred fifty-eight of the real 17 property tax law with respect to real property purchased with payments 18 received as prisoner of war compensation from the United States govern- 19 ment, or pursuant to paragraph (b) or (c) of subdivision two of section 20 four hundred fifty-eight-a of the real property tax law, or where the 21 owner of such residential real property in class one is receiving bene- 22 fits in accordance with department of finance memorandum 05-3, or any 23 successor memorandum thereto, relating to active duty military person- 24 nel, or where the owner of such residential real property in class one 25 has been allowed a credit pursuant to subsection (e) of section six 26 hundred six of the tax law for the calendar year in which the date of 27 the first publication, pursuant to subdivision a of section 11-320 of 28 this chapter, of the notice of sale, occurs or for the calendar year 29 immediately preceding such date; or (B) real property that was granted 30 an exemption pursuant to section four hundred twenty-a, four hundred 31 twenty-b, four hundred forty-six, or four hundred sixty-two of the real 32 property tax law in one of the two fiscal years preceding the date of 33 such sale, provided that: (1) such exemption was granted to such real 34 property upon the application of a not-for-profit organization that owns 35 such real property on or after the date on which such real property was 36 conveyed to such not-for-profit organization; (2) the real property tax 37 component of such lien arose on or after the date on which such real 38 property was conveyed to such not-for-profit organization; and (3) such 39 not-for-profit organization is organized or conducted for one of the 40 purposes described in paragraph a or paragraph b of subdivision one of 41 section 11-246 of this title, and (ii) the sewer rents component, sewer 42 surcharges component or water rents component of such tax lien may not 43 be sold pursuant to this subdivision on any one family residential real 44 property in class one or on any two or three family residential real 45 property in class one that is receiving an exemption pursuant to section 46 11-245.3 or 11-245.4 of this title, or pursuant to section four hundred 47 fifty-eight of the real property tax law with respect to real property 48 purchased with payments received as prisoner of war compensation from 49 the United States government, or pursuant to paragraph (b) or (c) of 50 subdivision two of section four hundred fifty-eight-a of the real prop- 51 erty tax law, or where the owner of any two or three family residential 52 real property in class one is receiving benefits in accordance with 53 department of finance memorandum 05-3, or any successor memorandum ther- 54 eto, relating to active duty military personnel, or where the owner of 55 any two or three family residential real property in class one has been 56 allowed a credit pursuant to subsection (e) of section six hundred six

S. 8578 272 1 of the tax law for the calendar year in which the date of the first 2 publication, pursuant to subdivision a of section 11-320 of this chap- 3 ter, of the notice of sale, occurs or for the calendar year immediately 4 preceding such date. A tax lien or tax liens on any property classified 5 as a class two property, except a class two property that is a residen- 6 tial condominium or residential cooperative, or a class two residential 7 property owned by a company organized pursuant to article eleven of the 8 private housing finance law that is not a residential condominium or a 9 residential cooperative, or class three property, as such classes of 10 property are defined in subdivision one of section eighteen hundred two 11 of the real property tax law, shall not be sold by the city unless such 12 tax lien or tax liens include a real property tax component as of the 13 date of the first publication, pursuant to subdivision a of section 14 11-320 of this chapter, of the notice of sale. Notwithstanding any 15 provision of this subdivision to the contrary, any such tax lien or tax 16 liens that remain unpaid in whole or in part after such date may be sold 17 regardless of whether such tax lien or tax liens include a real property 18 tax component. A tax lien or tax liens on a property classified as a 19 class four property, as such class of property is defined in subdivision 20 one of section eighteen hundred two of the real property tax law, shall 21 not be sold by the city unless such tax lien or tax liens include a real 22 property tax component or sewer rents component or sewer surcharges 23 component or water rents component or emergency repair charges compo- 24 nent, where such emergency repair charges accrued on or after January 25 first, two thousand six and are made a lien pursuant to section 27-2144 26 of this code, as of the date of the first publication, pursuant to 27 subdivision a of section 11-320 of this chapter, of the notice of sale, 28 provided, however, that any tax lien or tax liens that remain unpaid in 29 whole or in part after such date may be sold regardless of whether such 30 tax lien or tax liens include a real property tax component, sewer rents 31 component, sewer surcharges component, water rents component or emergen- 32 cy repair charges component. For purposes of this subdivision, the words 33 "real property tax" shall not include an assessment or charge upon prop- 34 erty imposed pursuant to section 25-411 of this code. A sale of a tax 35 lien or tax liens shall include, in addition to such lien or liens that 36 have remained unpaid in whole or in part for one year, or, in the case 37 of any class one property or class two property that is a residential 38 condominium or residential cooperative, when the real property tax 39 component of such lien or liens has remained unpaid in whole or in part 40 for three years, or, in the case of any class two residential property 41 owned by a company organized pursuant to article eleven of the private 42 housing finance law that is not a residential condominium or a residen- 43 tial cooperative, when the real property tax component of such lien or 44 liens has remained unpaid in whole or in part for two years, and equals 45 or exceeds the sum of five thousand dollars, any taxes, assessments, 46 sewer rents, sewer surcharges, water rents, any other charges that are 47 made a lien subject to the provisions of this chapter, the costs of any 48 advertisements and notices given pursuant to this chapter, any other 49 charges that are due and payable, a surcharge pursuant to section 11-332 50 of this chapter, and interest and penalties thereon or such component of 51 the amount thereof as shall be determined by the commissioner of 52 finance. The commissioner of finance may promulgate rules defining 53 "abandoned" property, as such term is used in this subdivision. 54 a-1. A subsequent tax lien or tax liens on a property or any component 55 of the amount thereof may be sold by the city pursuant to this chapter, 56 provided, however, that notwithstanding any provision in this chapter to

S. 8578 273 1 the contrary, such tax lien or tax liens may be sold regardless of 2 whether such tax lien or tax liens have remained unpaid in whole or in 3 part for one year and, notwithstanding any provision in this chapter to 4 the contrary, in the case of any class one property or class two proper- 5 ty that is a residential condominium or residential cooperative or, 6 beginning January first, two thousand twelve, in the case of any class 7 two residential property owned by a company organized pursuant to arti- 8 cle eleven of the private housing finance law that is not a residential 9 condominium or a residential cooperative, such tax lien or tax liens may 10 be sold if the real property tax component of such tax lien or tax liens 11 has remained unpaid in whole or in part for one year, and provided, 12 further, however, that (i) the real property tax component of such tax 13 lien may not be sold pursuant to this subdivision on any residential 14 real property in class one that is receiving an exemption pursuant to 15 section 11-245.3 or 11-245.4 of this title, or pursuant to section four 16 hundred fifty-eight of the real property tax law with respect to real 17 property purchased with payments received as prisoner of war compen- 18 sation from the United States government, or pursuant to paragraph (b) 19 or (c) of subdivision two of section four hundred fifty-eight-a of the 20 real property tax law, or where the owner of such residential real prop- 21 erty in class one is receiving benefits in accordance with department of 22 finance memorandum 05-3, or any successor memorandum thereto, relating 23 to active duty military personnel, or where the owner of such residen- 24 tial real property in class one has been allowed a credit pursuant to 25 subsection (e) of section six hundred six of the tax law for the calen- 26 dar year in which the date of the first publication, pursuant to subdi- 27 vision a of section 11-320 of this chapter, of the notice of sale, 28 occurs or for the calendar year immediately preceding such date and (ii) 29 the sewer rents component, sewer surcharges component or water rents 30 component of such tax lien may not be sold pursuant to this subdivision 31 on any one family residential real property in class one or on any two 32 or three family residential real property in class one that is receiving 33 an exemption pursuant to section 11-245.3 or 11-245.4 of this title, or 34 pursuant to section four hundred fifty-eight of the real property tax 35 law with respect to real property purchased with payments received as 36 prisoner of war compensation from the United States government, or 37 pursuant to paragraph (b) or (c) of subdivision two of section four 38 hundred fifty-eight-a of the real property tax law, or where the owner 39 of any two or three family residential real property in class one is 40 receiving benefits in accordance with department of finance memorandum 41 05-3, or any successor memorandum thereto, relating to active duty mili- 42 tary personnel, or where the owner of any two or three family residen- 43 tial real property in class one has been allowed a credit pursuant to 44 subsection (e) of section six hundred six of the tax law for the calen- 45 dar year in which the date of the first publication, pursuant to subdi- 46 vision a of section 11-320 of this chapter, of the notice of sale, 47 occurs or for the calendar year immediately preceding such date. For 48 purposes of this subdivision, the term "subsequent tax lien or tax 49 liens" shall mean any tax lien or tax liens on property that become such 50 on or after the date of sale of any tax lien or tax liens on such prop- 51 erty that have been sold pursuant to this chapter, provided that the 52 prior tax lien or tax liens remain unpaid as of the date of the first 53 publication, pursuant to subdivision a of section 11-320 of this chap- 54 ter, of the notice of sale of the subsequent tax lien or tax liens. A 55 subsequent tax lien or tax liens on any property classified as a class 56 two property, except a class two property that is a residential condo-

S. 8578 274 1 minium or residential cooperative, or a class two residential property 2 owned by a company organized pursuant to article eleven of the private 3 housing finance law that is not a residential condominium or a residen- 4 tial cooperative, or class three property, as such classes of property 5 are defined in subdivision one of section eighteen hundred two of the 6 real property tax law, shall not be sold by the city unless such tax 7 lien or tax liens include a real property tax component as of the date 8 of the first publication, pursuant to subdivision a of section 11-320 of 9 this chapter, of the notice of sale. Notwithstanding any provision of 10 this subdivision to the contrary, any such tax lien or tax liens that 11 remain unpaid in whole or in part after such date may be sold regardless 12 of whether such tax lien or tax liens include a real property tax compo- 13 nent. A subsequent tax lien or tax liens on a property classified as a 14 class four property, as such class of property is defined in subdivision 15 one of section eighteen hundred two of the real property tax law, shall 16 not be sold by the city unless such tax lien or tax liens include a real 17 property tax component or sewer rents component or sewer surcharges 18 component or water rents component or emergency repair charges compo- 19 nent, where such emergency repair charges accrued on or after January 20 first, two thousand six and are made a lien pursuant to section 27-2144 21 of this code, as of the date of the first publication, pursuant to 22 subdivision a of section 11-320 of this chapter, of the notice of sale, 23 provided, however, that any tax lien or tax liens that remain unpaid in 24 whole or in part after such date may be sold regardless of whether such 25 tax lien or tax liens include a real property tax component, sewer rents 26 component, sewer surcharges component, water rents component or emergen- 27 cy repair charges component. For purposes of this subdivision, the words 28 "real property tax" shall not include an assessment or charge upon prop- 29 erty imposed pursuant to section 25-411 of this code. Nothing in this 30 subdivision shall be deemed to limit the rights conferred by section 31 11-332 of this chapter on the holder of a tax lien certificate with 32 respect to a subsequent tax lien. 33 a-2. In addition to any sale authorized pursuant to subdivision a or 34 subdivision a-1 of this section and notwithstanding any provision of 35 this chapter to the contrary, beginning on December first, two thousand 36 seven, the water rents, sewer rents and sewer surcharges components of 37 any tax lien on any class of real property, as such real property is 38 classified in subdivision one of section eighteen hundred two of the 39 real property tax law, may be sold by the city pursuant to this chapter, 40 where such water rents, sewer rents or sewer surcharges component of 41 such tax lien, as of the date of the first publication, pursuant to 42 subdivision a of section 11-320 of this chapter, of the notice of sale: 43 (i) shall have remained unpaid in whole or in part for one year and (ii) 44 equals or exceeds the sum of one thousand dollars or, beginning on March 45 first, two thousand eleven, in the case of any two or three family resi- 46 dential real property in class one, for one year, and equals or exceeds 47 the sum of two thousand dollars, or, beginning on January first, two 48 thousand twenty-one, in the case of any two or three family residential 49 real property in class one, for one year, and equals or exceeds the sum 50 of three thousand dollars, or, beginning on January first, two thousand 51 twelve, in the case of any class two residential property owned by a 52 company organized pursuant to article eleven of the private housing 53 finance law that is not a residential condominium or a residential coop- 54 erative, as such class of property is defined in subdivision one of 55 section eighteen hundred two of the real property tax law, for two 56 years, and equals or exceeds the sum of five thousand dollars; provided,

S. 8578 275 1 however, that such water rents, sewer rents or sewer surcharges compo- 2 nent of such tax lien may not be sold pursuant to this subdivision on 3 any one family residential real property in class one or on any two or 4 three family residential real property in class one that is receiving an 5 exemption pursuant to section 11-245.3 or 11-245.4 of this title, or 6 pursuant to section four hundred fifty-eight of the real property tax 7 law with respect to real property purchased with payments received as 8 prisoner of war compensation from the United States government, or 9 pursuant to paragraph (b) or (c) of subdivision two of section four 10 hundred fifty-eight-a of the real property tax law, or where the owner 11 of any two or three family residential real property in class one is 12 receiving benefits in accordance with department of finance memorandum 13 05-3, or any successor memorandum thereto, relating to active duty mili- 14 tary personnel, or where the owner of any two or three family residen- 15 tial real property in class one has been allowed a credit pursuant to 16 subsection (e) of section six hundred six of the tax law for the calen- 17 dar year in which the date of the first publication, pursuant to subdi- 18 vision a of section 11-320 of this chapter, of the notice of sale, 19 occurs or for the calendar year immediately preceding such date. After 20 such sale, any such water rents, sewer rents or sewer surcharges compo- 21 nent of such tax lien may be transferred in the manner provided by this 22 chapter. 23 a-3. In addition to any sale authorized pursuant to subdivision a or 24 subdivision a-1 of this section and notwithstanding any provision of 25 this chapter to the contrary, beginning on December first, two thousand 26 seven, a subsequent tax lien on any class of real property, as such real 27 property is classified in subdivision one of section eighteen hundred 28 two of the real property tax law, may be sold by the city pursuant to 29 this chapter, regardless of whether such subsequent tax lien, or any 30 component of the amount thereof, shall have remained unpaid in whole or 31 in part for one year, and regardless of whether such subsequent tax 32 lien, or any component of the amount thereof, equals or exceeds the sum 33 of one thousand dollars or beginning on March first, two thousand elev- 34 en, in the case of any two or three family residential real property in 35 class one, a subsequent tax lien on such property may be sold by the 36 city pursuant to this chapter, regardless of whether such subsequent tax 37 lien, or any component of the amount thereof, shall have remained unpaid 38 in whole or in part for one year, and regardless of whether such subse- 39 quent tax lien, or any component of the amount thereof, equals or 40 exceeds the sum of two thousand dollars, or, beginning on January first, 41 two thousand twenty-one, in the case of any two or three family residen- 42 tial real property in class one, a subsequent tax lien on such property 43 may be sold by the city pursuant to this chapter, regardless of whether 44 such subsequent tax lien, or any component of the amount thereof, shall 45 have remained unpaid in whole or in part for one year, and regardless of 46 whether such subsequent tax lien, or any component of the amount there- 47 of, equals or exceeds the sum of three thousand dollars, or, beginning 48 on January first, two thousand twelve, in the case of any class two 49 residential property owned by a company organized pursuant to article 50 eleven of the private housing finance law that is not a residential 51 condominium or a residential cooperative, as such class of property is 52 defined in subdivision one of section eighteen hundred two of the real 53 property tax law, a subsequent tax lien on such property may be sold by 54 the city pursuant to this chapter, regardless of whether such subsequent 55 tax lien, or any component of the amount thereof, shall have remained 56 unpaid in whole or in part for two years, and regardless of whether such

S. 8578 276 1 subsequent tax lien, or any component of the amount thereof, equals or 2 exceeds the sum of five thousand dollars; provided, however, that such 3 subsequent tax lien may not be sold pursuant to this subdivision on any 4 one family residential real property in class one or on any two or three 5 family residential real property in class one that is receiving an 6 exemption pursuant to section 11-245.3 or 11-245.4 of this title, or 7 pursuant to section four hundred fifty-eight of the real property tax 8 law with respect to real property purchased with payments received as 9 prisoner of war compensation from the United States government, or 10 pursuant to paragraph (b) or (c) of subdivision two of section four 11 hundred fifty-eight-a of the real property tax law, or where the owner 12 of any two or three family residential real property in class one is 13 receiving benefits in accordance with department of finance memorandum 14 05-3, or any successor memorandum thereto, relating to active duty mili- 15 tary personnel, or where the owner of any two or three family residen- 16 tial real property in class one has been allowed a credit pursuant to 17 subsection (e) of section six hundred six of the tax law for the calen- 18 dar year in which the date of the first publication, pursuant to subdi- 19 vision a of section 11-320 of this chapter, of the notice of sale, 20 occurs or for the calendar year immediately preceding such date. After 21 such sale, any such subsequent tax lien, or any component of the amount 22 thereof, may be transferred in the manner provided by this chapter. For 23 purposes of this subdivision, the term "subsequent tax lien" shall mean 24 the water rents, sewer rents or sewer surcharges component of any tax 25 lien on property that becomes such on or after the date of sale of any 26 water rents, sewer rents or sewer surcharges component of any tax lien 27 on such property that has been sold pursuant to this chapter, provided 28 that the prior tax lien remains unpaid as of the date of the first 29 publication, pursuant to subdivision a of section 11-320 of this chap- 30 ter, of the notice of sale of the subsequent tax lien. Nothing in this 31 subdivision shall be deemed to limit the rights conferred by section 32 11-332 of this chapter on the holder of a tax lien certificate with 33 respect to a subsequent tax lien. 34 a-4. In addition to any sale authorized pursuant to subdivision a, 35 a-1, a-2 or a-3 of this section and notwithstanding any provision of 36 this chapter to the contrary, beginning on March first, two thousand 37 eleven, the emergency repair charges component or alternative enforce- 38 ment expenses and fees component, where such emergency repair charges 39 accrued on or after January first, two thousand six and are made a lien 40 pursuant to section 27-2144 of this code, or where such alternative 41 enforcement expenses and fees are made a lien pursuant to section 42 27-2153 of this code, of any tax lien on any class of real property, as 43 such real property is defined in subdivision one of section eighteen 44 hundred two of the real property tax law, may be sold by the city pursu- 45 ant to this chapter, where such emergency repair charges component or 46 alternative enforcement expenses and fees component of such tax lien, as 47 of the date of the first publication, pursuant to subdivision a of 48 section 11-320 of this chapter, of the notice of sale: (i) shall have 49 remained unpaid in whole or in part for one year and (ii) equals or 50 exceeds the sum of one thousand dollars or, beginning on January first, 51 two thousand twelve, in the case of any class two residential property 52 owned by a company organized pursuant to article eleven of the private 53 housing finance law that is not a residential condominium or a residen- 54 tial cooperative, as such class of property is defined in subdivision 55 one of section eighteen hundred two of the real property tax law, for 56 two years, and equals or exceeds the sum of five thousand dollars;

S. 8578 277 1 provided, however, that such emergency repair charges component or 2 alternative enforcement expenses and fees component of such tax lien may 3 only be sold pursuant to this subdivision on any one, two or three fami- 4 ly residential real property in class one, where such one, two or three 5 family residential property in class one is not the primary residence of 6 the owner. After such sale, any such emergency repair charges component 7 or alternative enforcement expenses and fees component of such tax lien 8 may be transferred in the manner provided by this chapter. 9 a-5. In addition to any sale authorized pursuant to subdivision a, 10 a-1, a-2 or a-3 of this section and notwithstanding any provision of 11 this chapter to the contrary, beginning on March first, two thousand 12 eleven, a subsequent tax lien on any class of real property, or begin- 13 ning on January first, two thousand twelve in the case of any class two 14 residential property owned by a company organized pursuant to article 15 eleven of the private housing finance law that is not a residential 16 condominium or a residential cooperative, a subsequent tax lien on such 17 property, may be sold by the city pursuant to this chapter, regardless 18 of the length of time such subsequent tax lien, or any component of the 19 amount thereof, shall have remained unpaid, and regardless of the amount 20 of such subsequent tax lien. After such sale, any such subsequent tax 21 lien, or any component of the amount thereof, may be transferred in the 22 manner provided by this chapter. For purposes of this subdivision, the 23 term "subsequent tax lien" shall mean the emergency repair charges 24 component or alternative enforcement expenses and fees component, where 25 such emergency repair charges accrued on or after January first, two 26 thousand six and are made a lien pursuant to section 27-2144 of this 27 code, or where such alternative enforcement expenses and fees are made a 28 lien pursuant to section 27-2153 of this code, of any tax lien on prop- 29 erty that becomes such on or after the date of sale of any emergency 30 repair charges component or alternative enforcement expenses and fees 31 component, of any tax lien on such property that has been sold pursuant 32 to this chapter, provided that the prior tax lien remains unpaid as of 33 the date of the first publication, pursuant to subdivision a of section 34 11-320 of this chapter, of the notice of sale of the subsequent tax 35 lien. Nothing in this subdivision shall be deemed to limit the rights 36 conferred by section 11-332 of this chapter on the holder of a tax lien 37 certificate with respect to a subsequent tax lien. 38 a-6. Notwithstanding any provision of this chapter to the contrary, 39 beginning on September first, two thousand seventeen, a lien that 40 includes civil penalties for a violation of section 28-201.1 of this 41 code where such civil penalties accrued on or after July first, two 42 thousand seventeen, and became a lien pursuant to section 28-204.6.6 of 43 this code, may be sold by the city pursuant to this chapter, where such 44 civil penalties component of such lien, as of the date of the first 45 publication, pursuant to subdivision a of section 11-320 of this chap- 46 ter, of the notice of sale (i) shall have remained unpaid in whole or in 47 part for one year or more and (ii) equals or exceeds the sum of one 48 thousand dollars. After such sale, any such civil penalties component of 49 such lien may be transferred in the manner provided by this chapter. 50 b. The commissioner of finance, on behalf of the city, may sell tax 51 liens, either individually, in combinations, or in the aggregate, pursu- 52 ant to the procedures provided herein. The commissioner of finance shall 53 establish the terms and conditions of a sale of a tax lien or tax liens. 54 1. (i) The commissioner of finance may, in his or her discretion, sell 55 a tax lien or tax liens through a competitive sale. In addition to the 56 advertisement and notice required to be provided pursuant to section

S. 8578 278 1 11-320 of this chapter, the commissioner of finance or his or her desig- 2 nee shall cause to be published a notice of intention to sell a tax lien 3 or tax liens through a competitive sale, which notice shall include the 4 terms and conditions for such sale, the criteria by which bids shall be 5 evaluated, and a request for any other information or documents that the 6 commissioner of finance may require. Such notice shall be published in 7 one newspaper of general circulation in the city, not less than fifteen 8 days prior to the date designated by the commissioner for the submission 9 of bids. 10 (ii) The commissioner of finance may, in his or her discretion, estab- 11 lish criteria for the eligibility of bidders pursuant to section 12 11-321.1 of this chapter. 13 (iii) The commissioner of finance may reject any or all bids, or may 14 accept any combination of bids in a competitive sale. 15 2. (i) The commissioner of finance may, in his or her discretion, sell 16 a tax lien or tax liens through a negotiated sale. In addition to the 17 advertisement and notice required to be provided pursuant to section 18 11-320 of this chapter, the commissioner of finance or his or her desig- 19 nee shall cause to be published a notice of intention to sell a tax lien 20 or tax liens through a negotiated sale, which notice shall advise that a 21 request for statements of interest is available at the office of the 22 department of finance, and which may require the submission of any 23 information or documents that the commissioner deems appropriate, 24 provided, however, that if the negotiated sale is to a trust or other 25 entity created by the city or in which the city has an ownership or 26 residual interest, then the requirement that the notice advise that a 27 request for statements of interest is available at the office of the 28 department of finance shall not apply. Such notice shall be published in 29 one newspaper of general circulation in the city, not less than fifteen 30 days prior to the date designated by the commissioner for the receipt of 31 statements of interest, or if the negotiated sale is to such trust or 32 other entity, then such notice shall be published not less than fifteen 33 days prior to the date of sale. For purposes of this subparagraph, the 34 words "date of sale" shall have the same meaning provided in subdivision 35 e of section 11-320 of this chapter. 36 (ii) The commissioner of finance may engage in a negotiated sale in 37 accordance with criteria to be established pursuant to section 11-321.1 38 of this chapter. 39 (iii) The commissioner of finance may execute a purchase and sale 40 agreement and other necessary agreements with a designated purchaser or 41 purchasers to complete a negotiated sale. 42 3. The commissioner of finance may establish a minimum price for the 43 sale of tax liens that may be at a discount from or premium to the lien 44 amount. Notwithstanding the preceding sentence, the commissioner of 45 finance may not establish a minimum price for the sale of an individual 46 tax lien that is at a discount from the lien amount. The commissioner of 47 finance shall sell such tax liens at a purchase price that, in the 48 determination of such commissioner, is in the best interests of the 49 city. The commissioner of finance, in his or her discretion, may accept 50 cash or cash equivalent in immediately available funds, or other consid- 51 eration acceptable to the commissioner, or any combination thereof in 52 payment for a tax lien or tax liens. 53 4. The amount of a tax lien that is sold pursuant to this chapter 54 shall be the unpaid amount of the lien as of the date of sale, including 55 any interest and penalties thereon, any taxes, assessments, sewer rents, 56 sewer surcharges, water rents, any other charges that are made a lien

S. 8578 279 1 subject to the provisions of this chapter, the costs of any advertise- 2 ments and notices given pursuant to this chapter, any other charges that 3 are due and payable, any surcharge pursuant to section 11-332 of this 4 chapter, and interest and penalties thereon, or such component of the 5 amount thereof as shall be determined by the commissioner of finance, 6 notwithstanding the amount paid for purchase of the tax lien or compo- 7 nent of the amount thereof. For purposes of this paragraph, the words 8 "date of sale" shall have the same meaning provided in subdivision y of 9 section 11-320 of this chapter. 10 5. (i) The commissioner of finance may, subsequent to the offer for 11 sale of any tax lien or tax liens and the failure to complete such sale, 12 offer such tax lien or tax liens for sale again to any other person or 13 persons who satisfied the terms and conditions of the sale without 14 providing any additional advertisements or notices pursuant to this 15 chapter. 16 (ii) Notwithstanding subparagraph (i) of this paragraph, any tax lien 17 that was noticed for sale pursuant to this chapter, but was not sold on 18 the original date of sale, may be sold without any additional advertise- 19 ments or notices pursuant to this chapter if the subsequent date of sale 20 is within six months of the second publication, pursuant to subdivision 21 a of section 11-320 of this chapter, of the notice of the original date 22 of sale. If the subsequent date of sale is more than six months after 23 the second publication, pursuant to subdivision a of section 11-320 of 24 this chapter, of the notice of the original date of sale, then the 25 commissioner of finance, or his or her designee, shall provide notice of 26 the subsequent date of sale pursuant to subdivision b of section 11-320 27 of this chapter. No other additional advertisements or notices shall be 28 necessary prior to the date of sale. 29 6. The rate of interest on any tax lien certificate shall be the rate 30 adopted for nonpayment of taxes on real property, pursuant to subdivi- 31 sion (e) of section 11-224.1 of this title, that is in effect on January 32 first of the year in which the tax lien is sold. 33 7. It is the intent of the city that a sale of a tax lien or tax liens 34 pursuant to this chapter shall be a sale and not a borrowing. 35 8. Whenever any tax lien purchased at a tax lien sale is found to be 36 invalid, void or defective in whole or in part, or not to conform to any 37 representation or warranty with respect thereto, made by the commission- 38 er of finance in connection with the sale thereof, by judgment or decree 39 of a court of competent jurisdiction or by determination of the commis- 40 sioner of finance, the commissioner of finance may, in his or her 41 discretion, substitute for such tax lien or portion thereof another tax 42 lien that has a value equivalent to the value of the tax lien or portion 43 thereof found to be invalid, void, defective, or not to so conform, or 44 may refund such value of the tax lien or portion thereof found to be 45 invalid, void, defective, or not to so conform, or may use a combination 46 of substitution and refund. No other remedy shall be available to a 47 purchaser of a tax lien which is found to be invalid, void, defective, 48 or not to conform to a representation or warranty with respect thereto 49 made by the commissioner of finance in connection with the sale thereof, 50 in whole or in part. Whenever a tax lien of such equivalent value is to 51 be substituted for a tax lien that has been found invalid, void, defec- 52 tive, or not to so conform, in whole or in part, pursuant to this 53 section, the commissioner of finance or his or her designee shall 54 provide mailed notice of the intention to substitute such lien of such 55 equivalent value to any person required to be notified pursuant to 56 section 11-320(b) of this chapter.

S. 8578 280 1 9. The commissioner of finance may establish requirements for a 2 purchaser of a tax lien to provide any information and documents that 3 the commissioner of finance deems necessary, including information 4 concerning the collection and enforcement of tax liens. The commission- 5 er of finance shall require the purchaser of a tax lien to provide the 6 owner of property on which a tax lien has been sold pursuant to this 7 chapter a detailed itemization of taxes, interest, surcharges, and fees 8 charged to such owner on all tax lien statements of amounts due or bill 9 of charges. Such fees shall be bona fide, reasonable and, in the case of 10 attorneys' fees, customary. 11 10. (i) On and after January first, two thousand twelve, no tax lien 12 shall be sold pursuant to this chapter on any class two residential 13 property owned by a company organized pursuant to article eleven of the 14 private housing finance law that is a residential condominium or resi- 15 dential cooperative. If, notwithstanding the foregoing sentence, any 16 such tax lien is sold in error pursuant to this chapter on and after 17 January first, two thousand twelve on such property, then the provisions 18 of paragraph eight of this subdivision shall apply to such sale, includ- 19 ing the authority of the commissioner of finance to substitute for such 20 tax lien another tax lien that has a value equivalent to the value of 21 such tax lien or to refund the value of such tax lien. For the purposes 22 of this paragraph, property owned by such company shall be limited to 23 property owned for the purpose, as set forth in section five hundred 24 seventy-one of the private housing finance law, of providing housing for 25 families and persons of low income. 26 (ii) No later than May first, two thousand eleven, the commissioner of 27 finance, in consultation with the commissioner of housing preservation 28 and development, shall notify by mail any class two residential property 29 owned by a company organized pursuant to article eleven of the private 30 housing finance law that is not a residential condominium or residential 31 cooperative, of the authority of the commissioner of finance to sell the 32 tax liens on such property. Such notification shall include information 33 relating to the lien sale process, including, but not limited to, 34 actions homeowners can take if a lien is sold on such property; the type 35 of debt that can be sold in a lien sale; a timeline of statutory notifi- 36 cations required pursuant to section 11-320 of this chapter; a clear, 37 concise explanation of the consequences of the sale of a tax lien; the 38 telephone number and electronic mail address of the employee or employ- 39 ees designated pursuant to subdivision f of section 11-320 of this chap- 40 ter; a conspicuous statement that the owner of the property may enter 41 into a payment plan for exclusion from the tax lien sale; and credits 42 and property tax exemptions that may exclude a property from a tax lien 43 sale and any other credit or residential real property tax exemption 44 information, which, in the discretion of the commissioner of finance, 45 should be included in such notification. 46 Upon such property owner's written request, or verbal request to 311 47 or any employee designated pursuant to subdivision f of section 11-320 48 of this chapter, a Chinese, Korean, Russian or Spanish translation of 49 such notice shall be provided promptly to such property owner. 50 11. No later than the first of September in the year next succeeding 51 the effective date of this section, the appropriate agency shall promul- 52 gate rules identifying or describing any existing procedures governing 53 challenges to the validity of any real property tax, sewer rent, sewer 54 surcharge, water rent, emergency repair charge or alternative enforce- 55 ment expense or fee.

S. 8578 281 1 12. On or after January first, two thousand fifteen and before January 2 first, two thousand seventeen, no tax lien shall be sold pursuant to 3 this chapter on the following properties: (i) properties enrolled in the 4 city's Build It Back Program; and (ii) properties defined as "eligible 5 real property" pursuant to subdivision three of section four hundred 6 sixty-seven-g of the real property tax law. If, notwithstanding the 7 foregoing sentence, any such tax lien is sold in error pursuant to this 8 chapter during such time period on properties described in subparagraph 9 (i) or (ii) of this paragraph, then the provisions of paragraph eight of 10 this subdivision shall apply to such sale, including the authority of 11 the commissioner of finance to substitute for such tax lien another tax 12 lien that has a value equivalent to the value of such tax lien or to 13 refund the value of such lien. 14 13. Notwithstanding any provision of this chapter to the contrary, no 15 tax lien shall be sold pursuant to this chapter on any of the following 16 properties: (i) any real property for which the owner in good faith has 17 submitted an application that is pending with the department of finance 18 for a real property tax exemption pursuant to section four hundred twen- 19 ty-a, four hundred twenty-b, four hundred forty-six, or four hundred 20 sixty-two of the real property tax law; and (ii) any real property for 21 which the owner has in good faith filed an appeal with the tax commis- 22 sion of a denial of any such application and such appeal is pending. 23 There shall be a rebuttable presumption that an application or an appeal 24 referenced in the preceding sentence was not submitted in good faith 25 where, within the twenty-four months preceding the submission of such 26 application or such appeal, the period for the filing of an appeal of a 27 denial by the department of finance of a previous application for a real 28 property tax exemption pursuant to section four hundred twenty-a, four 29 hundred twenty-b, four hundred forty-six, or four hundred sixty-two of 30 the real property tax law has expired. 31 § 11-320 Notice of sale to be advertised and mailed. a. 1. The tax 32 lien on property in the city shall not be sold pursuant to section 33 11-319 of this chapter unless notice of such sale as provided herein has 34 been published twice, the first publication to be in a newspaper of 35 general circulation in the city, not less than ninety days preceding the 36 date of the sale, and the second publication to be in a publication 37 designated by the commissioner of finance, not less than ten days 38 preceding the date of the sale. Such publication shall include a 39 description by block and lot or by such other identification as the 40 commissioner of finance may deem appropriate, of the property upon which 41 the tax lien exists that may be included in the sale, and a statement 42 that a list of the tax liens that may be included in the sale is avail- 43 able for inspection in the office of the city register and the office of 44 the county clerk. The commissioner of finance shall file such list in 45 the office of the city register and the office of the county clerk not 46 less than ninety days prior to the date of sale. 47 2. Not less than ninety days preceding the date of the sale, the 48 commissioner of finance shall post online, to the extent such informa- 49 tion is available, the borough, block and lot of any property on which a 50 lien has been or will be noticed for sale in accordance with paragraph 51 one of this subdivision and that, in one or more of the five fiscal 52 years preceding the date of the sale, was in receipt of a real property 53 tax exemption pursuant to section four hundred twenty-a, four hundred 54 twenty-b, four hundred forty-six or four hundred sixty-two of the real 55 property tax law and, in addition, shall post online, to the extent such 56 information is available, the borough, block and lot of any vacant land

S. 8578 282 1 classified as class one or class four pursuant to section eighteen 2 hundred two of the real property tax law on which a lien has been or 3 will be noticed for sale in accordance with paragraph one of this subdi- 4 vision. Any failure to comply with this paragraph shall not affect the 5 validity of any sale of tax liens pursuant to this chapter. 6 b. 1. A tax lien shall not be sold unless the commissioner of finance, 7 or his or her designee, notifies the owner of record at the address of 8 record and any other person who has registered pursuant to section 9 11-309 of this chapter, or pursuant to section 11-416 or 11-417 of this 10 title, by first class mail, of the intention to sell the tax lien. If no 11 such registrations have been filed then such commissioner, or his or her 12 designee, shall notify the person whose name and address, if any, 13 appears in the latest annual record of assessed valuations, by first 14 class mail, of the intention to sell the tax lien. Such mailed notice 15 shall include a description of the property by block and lot and such 16 other identifying information as the commissioner of finance may deem 17 appropriate, the amount of the tax lien, including all taxes, assess- 18 ments, sewer rents, sewer surcharges, water rents, any other charges 19 that are made a lien subject to the provisions of this chapter, as well 20 as an estimate of the costs of any advertisements and notices given 21 pursuant to this chapter, any other charges that are due and payable on 22 the date specified in such publication, a surcharge pursuant to section 23 11-332 of this chapter if the tax lien is sold, and interest and penal- 24 ties thereon, and shall be mailed to such owner and such other persons 25 four times: not less than ninety, sixty, thirty and ten days prior to 26 the date of sale. Such notice shall state that if default continues to 27 be made in payment of the amounts due on such property, the tax lien on 28 such property shall be sold as provided in section 11-319 of this chap- 29 ter. If, notwithstanding such notice, the owner shall continue to refuse 30 or neglect to pay the amounts due on such property, the commissioner of 31 finance may sell the tax lien on such property as provided in section 32 11-319 of this chapter. 33 2. (i) Such notices shall also include, with respect to any property 34 owner in class one or class two, as such classes of property are defined 35 in subdivision one of section eighteen hundred two of the real property 36 tax law, an exemption eligibility checklist. The exemption eligibility 37 checklist shall also be posted on the website of the department of 38 finance no later than the first business day after March fifteenth of 39 every year prior to the date of sale, and shall continue to be posted on 40 such website until ten days prior to the date of sale. Within ten busi- 41 ness days of receipt of a completed exemption eligibility checklist from 42 such property owner, provided that such receipt occurs prior to the date 43 of sale of any tax lien or tax liens on his or her property, the depart- 44 ment of finance shall review such checklist to determine, based on the 45 information provided by the property owner, whether such property owner 46 could be eligible for any exemption, credit or other benefit that would 47 entitle them to be excluded from a tax lien sale and, if the department 48 determines that such property owner could be eligible for any such 49 exemption, credit or other benefit, shall mail such property owner an 50 application for the appropriate exemption, credit or other benefit. If, 51 within twenty business days of the date the department mailed such 52 application, the department of finance has not received a completed 53 application from such property owner, such department shall mail such 54 property owner a second application, and shall telephone the property 55 owner, if the property owner has included his or her telephone number on 56 the exemption eligibility checklist.

S. 8578 283 1 (ii) Any such property owner who returns to the department of finance 2 a completed exemption eligibility checklist prior to the date of sale of 3 any tax lien or tax liens on his or her property and who subsequently 4 submits a completed application for the appropriate exemption, credit or 5 other benefit either prior to, on or up to ninety days after such sale, 6 shall have his or her application reviewed by the department of finance. 7 If, prior to the date of sale, the department of finance determines that 8 such property owner is qualified for such exemption, credit or other 9 benefit or will be qualified as of the date of sale, then the tax lien 10 or tax liens on his or her property shall not be sold on such date. If, 11 on or after the date of sale, the department of finance determines that 12 such property owner is or was qualified for such exemption, credit or 13 other benefit as of the date of sale, then any tax lien or tax liens on 14 his or her property that were sold shall be deemed defective. 15 (iii) Not later than thirty days prior to such date of sale, the 16 department of finance shall submit to the council a list, disaggregated 17 by council district, of all properties for which property owners 18 returned a completed eligibility checklist to the department of finance 19 at least thirty-five days prior to the date of sale, but for which prop- 20 erty owners have not yet submitted a completed application for the 21 appropriate exemption, credit or other benefit. 22 (iv) Not later than thirty days after such date of sale, the depart- 23 ment of finance shall submit to the council a list, disaggregated by 24 council district, of all properties for which property owners returned a 25 completed eligibility checklist to the department of finance prior to 26 the date of sale, but for which property owners have not yet submitted a 27 completed application for the appropriate exemption, credit or other 28 benefit. 29 (v) Upon the written or verbal request of such property owner, the 30 department of finance shall provide prompt assistance to such property 31 owner in completing an application for the appropriate exemption, credit 32 or other benefit. 33 2-a. If, prior to the date of sale, the department of finance confirms 34 that a property is the subject of (i) a judicial proceeding or (ii) an 35 investigation or a prosecution by any agency or office of the United 36 States or any state or subdivision thereof with regard to the ownership 37 of such property arising from the fraudulent transmittal of a deed 38 relating to such property, such department shall remove such property 39 from the sale, provided that the owner of such property has provided an 40 affidavit to such department and any such other documentation required 41 by such department to establish that such property is the subject of 42 such a proceeding, investigation or prosecution. Any such removal shall 43 relate only to the sale of a tax lien or tax liens for which the owner 44 has received notice pursuant to paragraph one of subdivision b of this 45 section. Failure by the department of finance to remove such property 46 shall not affect the validity of any sale of tax liens pursuant to this 47 chapter. 48 3. The notice provided not less than ninety days prior to the date of 49 sale shall also include information relating to the lien sale process, 50 including, but not limited to, actions homeowners can take if a lien is 51 sold on such property; the type of debt that can be sold in a lien sale; 52 a timeline of statutory notifications required pursuant to this section; 53 a clear, concise explanation of the consequences of the sale of a tax 54 lien; the telephone number and electronic mail address of the employee 55 or employees designated pursuant to subdivision f of this section; a 56 conspicuous statement that the owner of the property may enter into a

S. 8578 284 1 payment plan for exclusion from the tax lien sale; and credits and prop- 2 erty tax exemptions that may exclude certain class one real property 3 from a tax lien sale. Such notice shall also include information on the 4 following real property tax exemptions, credits or other benefits: 5 (i) the senior citizen homeowner exemption pursuant to section 6 11-245.3 of this title; 7 (ii) the exemption for persons with disabilities pursuant to section 8 11-245.4 of this title; 9 (iii) the exemption for veterans pursuant to section four hundred 10 fifty-eight of the real property tax law, with respect to real property 11 purchased with payments received as prisoner of war compensation from 12 the United States government; 13 (iv) the exemption for veterans pursuant to paragraph (b) or (c) of 14 subdivision two of section four hundred fifty-eight-a of the real prop- 15 erty tax law; 16 (v) the state circuit breaker income tax credit pursuant to subsection 17 (e) of section six hundred six of the tax law; and 18 (vi) the active duty military personnel benefit pursuant to department 19 of finance memorandum 05-3, or any successor memorandum thereto. 20 Upon such property owner's written request, or verbal request to 311 21 or any employee designated pursuant to subdivision f of this section, a 22 Chinese, Korean, Russian or Spanish translation of such notice shall be 23 provided promptly to such property owner. 24 4. Such notice shall also include, with respect to a property that was 25 in receipt of a real property tax exemption pursuant to section four 26 hundred twenty-a, four hundred twenty-b, four hundred forty-six, or four 27 hundred sixty-two of the real property tax law in one or more of the 28 three fiscal years preceding the date of the notice provided not less 29 than ninety days prior to the date of sale, or with respect to a proper- 30 ty in class four, as such class of property is defined in subdivision 31 one of section eighteen hundred two of the real property tax law, infor- 32 mation relating to the initial application and renewal process for such 33 property tax exemptions, and other actions available to the owner of 34 such property in the event such property is noticed for sale pursuant to 35 this subdivision, including, if available, an adjustment or cancellation 36 of back taxes. Upon request of the owner of such property, a translation 37 of such notice in any of the top ten languages most commonly spoken 38 within the city as determined by the department of city planning shall 39 be provided to such owner. 40 5. The department of finance and the department of environmental 41 protection shall, to the extent practicable, contact by telephone or 42 electronic mail any person who (i) has registered their telephone number 43 or electronic mail address with such departments and (ii) has received 44 the ninety-day notice described in paragraph one of this subdivision. 45 Any such contact shall be made within a time period reasonably proximate 46 to the mailing of such notice, shall inform such person of the intention 47 to sell a tax lien and shall provide such other information as the 48 respective commissioner deems appropriate, which may include, but need 49 not be limited to, the telephone numbers and electronic mail addresses 50 of the employees designated pursuant to subdivision f of this section. 51 The department of finance shall contact by electronic mail any person 52 who has registered pursuant to subdivision a of section 11-245.8 of this 53 title to receive information about the outreach sessions described in 54 subdivision j of this section and provide such information within a time 55 period reasonably proximate to the scheduled outreach session. Failure 56 by the department of finance or the department of environmental

S. 8578 285 1 protection to contact any such person by telephone or electronic mail 2 shall not affect the validity of any sale of tax liens pursuant to this 3 chapter. 4 c. Such notices shall advise the owner of such property of his or her 5 continued obligation to pay the amounts due on such property. No other 6 notices or demands shall be required to be made to the owner of such 7 property to authorize the sale of a tax lien or tax liens on such prop- 8 erty pursuant to section 11-319 of this chapter. 9 c-1. Where a tax lien on property in the city has been noticed for 10 sale pursuant to subdivision b of this section and such lien, prior to 11 the date of sale, has been paid or is otherwise determined by the 12 commissioner of finance not to be eligible to be sold, such commissioner 13 shall promptly provide written notification to the owner of such proper- 14 ty that such lien will not be or was not included in such sale and the 15 reason therefor. 16 d. 1. The commissioner of finance or his or her designee shall, within 17 ninety days after the delivery of the tax lien certificate, notify any 18 person who was required to be notified of such sale pursuant to subdivi- 19 sion (b) of section 11-320 of this chapter, by first class mail, that 20 such sale has occurred. Such notice shall state the date of the sale of 21 the tax lien, the name and address of the purchaser of the tax lien, the 22 amount of such lien, a description of the property by block and lot and 23 such other identifying information as the commissioner of finance or his 24 or her designee shall deem appropriate, and the terms and conditions of 25 the tax lien certificate, including the right to satisfy the lien within 26 the time periods specified in this chapter. Such notice shall also 27 include the telephone number and electronic mail address of the employee 28 or employees designated pursuant to subdivision f of this section. 29 2. Any written communication from the purchaser of the tax lien or 30 liens to an owner of property, on which a tax lien has been sold pursu- 31 ant to the provisions of this chapter, shall include the following 32 information: 33 (i) an explanation of the roles of the purchaser of the tax lien and 34 the employee or employees designated pursuant to subdivision f of this 35 section; 36 (ii) the names and contact information, including the telephone 37 number, electronic mail and mailing addresses of such persons; and 38 (iii) a statement informing such owner that he or she may be eligible 39 to enter into a forbearance agreement with the purchaser of such tax 40 lien. 41 3. The requirement to send such written communication shall be subject 42 to federal, state and local debt collection laws. 43 4. Failure to provide notice pursuant to this subdivision shall not 44 affect the validity of any sale of a tax lien or tax liens pursuant to 45 this chapter. 46 e. The words "date of sale" when used in this section shall mean: 47 (1) for a negotiated sale, the date of signing of the tax lien 48 purchase agreement, and (2) for a competitive sale, the date designated 49 by the commissioner of finance for the submission of bids. 50 f. The commissioner of finance shall designate an employee of the 51 department to respond to inquiries from owners of property for which a 52 tax lien has been sold or noticed for sale pursuant to subdivision a of 53 this section and shall designate an employee of the department to 54 respond to inquiries from owners sixty-five years of age or older of 55 property for which a tax lien has been sold or noticed for sale pursuant 56 to subdivision a of this section. The commissioner of environmental

S. 8578 286 1 protection shall designate at least one employee of the department of 2 environmental protection to respond to inquiries from owners of property 3 for which a tax lien containing a water rents, sewer rents or sewer 4 surcharges component has been sold or noticed for sale pursuant to 5 subdivision a of this section. The telephone numbers and electronic mail 6 addresses of employees designated pursuant to this subdivision shall be 7 posted online and shall be included on all publications and notices 8 required by subdivisions a and b of this section. Failure to include 9 such numbers and addresses on all such publications and notices shall 10 not affect the validity of any sale of tax liens pursuant to this chap- 11 ter. 12 g. No later than one hundred twenty days after the tax lien sale, the 13 commissioner of finance shall submit to the council a list of all prop- 14 erties, identified by block and lot, noticed for sale pursuant to subdi- 15 vision b of this section. Such list shall also include a description of 16 the disposition of such properties that shall include, but not be limit- 17 ed to, whether an owner entered into a payment plan with the city pursu- 18 ant to section 11-322 or 11-322.1 of this chapter, whether an owner 19 satisfied the tax lien or liens, whether ownership of the property was 20 transferred, provided that such information is available to the city, or 21 whether the property was distressed, as defined in subdivision four of 22 section 11-401 of this title, or removed from the sale pursuant to the 23 discretion of the commissioner of housing preservation and development. 24 h. 1. On a quarterly basis, a purchaser of tax liens shall provide to 25 the council a list of all properties on which tax liens have been sold 26 where, subsequent to such sale, there has been a transfer of ownership 27 of the property, provided that a purchaser of tax liens has knowledge of 28 such transfers, for the following groups: 29 (i) all properties on which liens for emergency repair charges or 30 alternative enforcement expenses and fees have been sold to such 31 purchaser pursuant to subdivision a-4 of section 11-319 of this chapter; 32 and 33 (ii) all class two residential property owned by a company organized 34 pursuant to article eleven of the private housing finance law that is 35 not a residential condominium or a residential cooperative on which any 36 tax lien has been sold pursuant to subdivision a, a-2 or a-4 of section 37 11-319 of this chapter. 38 2. When available, a purchaser of tax liens shall include the names 39 and contact information of the new owners of record of such properties. 40 i. On a quarterly basis, a purchaser of tax liens shall provide to the 41 council a property status report. For each property, such report shall 42 include: (1) information about such property, including property tax 43 class; property type; description of the tax lien or tax liens that have 44 been sold to such purchaser on such property pursuant to this chapter, 45 including the amount of the tax lien or tax liens, the costs of any 46 advertisements and notices given pursuant to this chapter; the amount of 47 the surcharge pursuant to section 11-332 of this chapter; and the amount 48 of interest and penalties thereon; and (2) the status of the tax lien or 49 tax liens, including foreclosure information, if applicable; whether the 50 property owner entered into an installment agreement; whether the prop- 51 erty owner is current on such installment agreement; and whether the tax 52 lien or tax liens on such property have been deemed defective, and, if 53 so, the reason any such lien or liens were deemed defective. Each prop- 54 erty listed in the report shall be identified by block and lot. 55 j. (1) At the request of a council member, the commissioner of 56 finance, in consultation with the commissioner of housing preservation

S. 8578 287 1 and development and the commissioner of environmental protection, may 2 conduct outreach sessions in the district of such council member, 3 provided, however, that, the commissioner of finance shall conduct such 4 outreach sessions in the ten council districts with the greatest number 5 of properties for which a notice of intention to sell a tax lien has 6 been mailed ninety days prior to the date of sale pursuant to paragraph 7 one of subdivision b of this section, and provided, further, however, 8 that, such commissioner shall conduct additional outreach sessions in 9 the five council districts with the greatest number of properties for 10 which a notice of intention to sell a tax lien has been mailed ninety 11 days prior to the date of sale pursuant to such paragraph. To the extent 12 practicable, the commissioner of finance shall schedule the outreach 13 sessions in the five council districts described in the preceding 14 sentence such that one occurs prior to the mailing of the notice of 15 intention to sell a tax lien that is required to be mailed thirty days 16 prior to the date of sale pursuant to paragraph one of subdivision b of 17 this section and one occurs subsequent to such mailing. The scope of 18 such outreach sessions shall include, but need not be limited to, (i) 19 actions property owners can take if a lien is sold on such property; 20 (ii) the type of tax lien or tax liens that can be sold in a tax lien 21 sale; (iii) installment agreement information, including informing 22 attendees in such outreach sessions of their option to enter into an 23 installment agreement for exclusion from the tax lien sale with no down 24 payment, with options for income-based installment agreements or 25 installment agreements with a term of up to ten years; (iv) credits and 26 property tax exemptions that may exclude a property from a tax lien 27 sale; (v) distribution of a customer survey to property owners who have 28 received notice of the intention to sell a tax lien on their property, 29 in order to determine the circumstances that led to the creation of the 30 lien; and (vi) any other credit or residential real property tax 31 exemption information, which, in the discretion of the commissioner of 32 finance, should be included in such outreach sessions. (2) The commis- 33 sioner of finance shall make a good faith effort to have a financial 34 counselor available at such outreach sessions. No later than ninety days 35 after the tax lien sale, the commissioner of finance shall submit to the 36 council a report on the number of outreach sessions performed in each 37 council district during the ninety-day period preceding the tax lien 38 sale. Such report shall include: (i) the number of installment agree- 39 ments begun by property owners or, as defined in subdivision b of 40 section 11-322 of this chapter, other eligible persons acting on behalf 41 of property owners at each outreach session; (ii) the number of property 42 tax exemption applications begun at each outreach session; (iii) the 43 total number of attendees at each outreach session; (iv) the number of 44 outreach sessions at which a financial counselor was available; (v) the 45 number of property owners, or other eligible persons acting on behalf of 46 property owners, who consulted a financial counselor at each outreach 47 session at which a financial counselor was available; and (vi) the 48 results of such surveys. Such report and the results of each outreach 49 session shall be disaggregated by council district. 50 k. The commissioner of finance shall post online the information 51 reported to the council pursuant to subdivisions h and i of this 52 section, provided that no information shall be posted online that 53 specifically identifies any property or property owner, except by zip 54 code and a randomly generated identifier. 55 § 11-321 Continuation of sale; notice required. A sale of a tax lien 56 or tax liens may be continued from time to time, if necessary, until all

S. 8578 288 1 the tax liens on the property so advertised and noticed shall be sold 2 unless such sale is canceled or postponed in accordance with section 3 11-322 or 11-322.1 of this chapter. If a sale of a tax lien or tax liens 4 is continued, the commissioner of finance, or his or her designee, shall 5 give such notice as is practicable of such continuation. 6 § 11-322 Postponement or cancellation of sales; installment agree- 7 ments. a. It shall be lawful for the commissioner of finance, or his or 8 her designee, to postpone or cancel any proposed sale of a tax lien or 9 tax liens on property that shall have been advertised and noticed for 10 sale prior to the date of sale. For purposes of this section, the words 11 "date of sale" shall have the same meaning provided in subdivision e of 12 section 11-320 of this chapter. The city shall not be liable for any 13 damages as a result of cancellation or postponement of a proposed sale 14 of a tax lien or tax liens, nor shall any cause of action arise from 15 such cancellation or postponement. 16 b. In accordance with rules promulgated by the commissioners of 17 finance and environmental protection, a property owner, or other eligi- 18 ble person, as defined by rule, acting on behalf of an owner, may enter 19 into agreements with the departments of finance and environmental 20 protection for the payment in installments of any delinquent real prop- 21 erty taxes, assessments, sewer rents, sewer surcharges, water rents, or 22 any other charges that are made a lien subject to the provisions of this 23 chapter. The proposed sale of a tax lien or tax liens on property shall 24 be cancelled when a property owner, or other eligible person acting on 25 behalf of an owner, enters into an agreement with the respective agency 26 for the payment of any such lien. Such rules shall also provide that 27 such property owners or such other eligible persons be given information 28 regarding eligibility for real property tax exemption programs prior to 29 entering into such agreements. As used in this subdivision, the term 30 "other eligible person" shall include a fiduciary, as defined in para- 31 graph three of subdivision (a) of section 11-1.1 of the estates, powers 32 and trusts law, acting with respect to the administration of the proper- 33 ty of an estate of a decedent who owned the real property as to which an 34 agreement under this subdivision is sought, or on behalf of a benefici- 35 ary of such real property from such estate. Any rules promulgated in 36 accordance with this subdivision defining "other eligible person" shall 37 include in such definition the means by which a beneficiary of real 38 property of the estate of a decedent who owned real property as to which 39 an agreement under this subdivision is sought meets the definition of 40 "other eligible person". Such means shall include the furnishing of any 41 death certificates or other relevant documents that substantiate the 42 claim of a beneficiary that they are the legal owner of the property. 43 Notwithstanding any other provision of this section, no more than one 44 such agreement with each respective agency may be in effect for a prop- 45 erty at any one time. 46 1. If payments required from a property owner, or other eligible 47 person acting on behalf of an owner, pursuant to such an agreement are 48 not made for a period of six months, such property owner, or such other 49 eligible person, shall be in default of such agreement, and the tax lien 50 or tax liens on the subject property may be sold, provided, however, 51 that such default may be cured upon such property owner's, or such other 52 eligible person's, bringing all installment payments and all current 53 charges that are outstanding at the time of the default to a current 54 status, which shall include, but not be limited to, any outstanding 55 interest and fees, prior to the date of sale, provided, however, that 56 such property owner, or such other eligible person, may elect to cure

S. 8578 289 1 such default by entering into a new installment agreement with a down 2 payment of twenty percent or more, of all delinquent real property 3 taxes, assessments, sewer rents, sewer surcharges, water rents and other 4 charges that are made a lien subject to the provisions of this chapter, 5 including any outstanding interest and fees, prior to the date of sale. 6 If such default is not cured prior to the date of sale, such property 7 owner, and any other eligible person acting on behalf of an owner, shall 8 not be eligible to enter into an installment agreement for the subject 9 property for five years, unless there is a finding of extenuating 10 circumstances by the department that entered into the installment agree- 11 ment with the property owner or such other eligible person. Notwith- 12 standing the prohibition against entering into an installment agreement 13 for the subject property for five years, a property owner, or such other 14 eligible person, who has defaulted on an installment agreement and whose 15 lien has been sold and, subsequent to the sale of the lien, whose prop- 16 erty on which the lien was sold is subject to another tax lien that is 17 eligible to be sold, may elect to enter into another installment agree- 18 ment with respect to such other lien before the end of such five-year 19 period, provided that such property owner, or such other eligible 20 person, makes a down payment of twenty percent or more, of all delin- 21 quent real property taxes, assessments, sewer rents, sewer surcharges, 22 water rents and other charges that are made a lien subject to the 23 provisions of this chapter, including any outstanding interest and fees, 24 prior to the date of the sale. No such property owner, or such other 25 eligible person, may make the election that is authorized pursuant to 26 this paragraph to enter into an installment agreement with a down 27 payment more than once for the subject property. The standards relating 28 to defaults and cures of defaults of installment agreements set forth in 29 this paragraph apply to installment agreements entered into pursuant to 30 such election. 31 2. An installment agreement shall provide for payments by the property 32 owner, or other eligible person acting on behalf of an owner, on a quar- 33 terly or monthly basis, for a period not less than eight years and not 34 more than ten years, provided that a property owner, or other eligible 35 person acting on behalf of an owner, may elect a period less than eight 36 years. Except as provided in paragraph one of this subdivision, there 37 shall be no down payment required upon the property owner's, or such 38 other eligible person's, entering into the installment agreement with 39 the respective department, but the property owner, or other eligible 40 person acting on behalf of an owner, may elect to make a down payment. 41 With respect to installment agreements with the commissioner of environ- 42 mental protection, the determination of whether payments shall be on a 43 quarterly or monthly basis shall be in the discretion of such commis- 44 sioner, except as provided in paragraph three of this subdivision. With 45 respect to installment agreements with the commissioner of finance, the 46 determination of whether payments shall be on a quarterly or monthly 47 basis shall be in the discretion of the property owner, or other eligi- 48 ble person acting on behalf of an owner. 49 3. Beginning on January first, two thousand twelve, any property owner 50 who has entered into an installment agreement with the commissioner of 51 environmental protection pursuant to this subdivision and who has auto- 52 mated meter reading shall receive a consolidated monthly bill for 53 current sewer rents, sewer surcharges and water rents and any payment 54 due under such installment agreement. 55 4. No later than September first, two thousand eleven, the commission- 56 ers of finance and environmental protection shall promulgate rules

S. 8578 290 1 governing installment agreements, including but not limited to, the 2 terms and conditions of such agreements, the payment schedules, and the 3 definition and consequences of default; no later than June first, two 4 thousand fourteen, the commissioners of finance and environmental 5 protection shall promulgate rules governing eligibility of owners or 6 other eligible persons acting on behalf of owners to enter into install- 7 ment agreements. 8 5. All installment agreements executed on or after March first, two 9 thousand fifteen shall include a conspicuous statement that if payments 10 required from a property owner pursuant to such an agreement are not 11 made for a period of six months, such property owner shall be in default 12 of such agreement, and the tax lien or tax liens on the subject property 13 may be sold, provided, however, that such default may be cured upon such 14 property owner's bringing all installment payments and all current 15 charges that are outstanding at the time of the default to a current 16 status, which shall include, but not be limited to, any outstanding 17 interest and fees, prior to the date of sale. Such statement shall also 18 include a notification that if such default is not cured prior to the 19 date of sale, such property owner shall not be eligible to enter into an 20 installment agreement for the subject property for five years, unless 21 there is a finding of extenuating circumstances in accordance with rules 22 promulgated by the department that entered into the installment agree- 23 ment with the property owner. Such statement shall include the defi- 24 nition of extenuating circumstances. All installment agreements shall 25 also include a statement describing the conditions under which the prop- 26 erty owner, or any other eligible person acting on behalf of an owner, 27 may be eligible, after default, to enter into another installment agree- 28 ment after such default, in accordance with paragraph one of this subdi- 29 vision. 30 6. If a property owner, or other eligible person acting on behalf of 31 an owner, who has entered into an installment agreement with the depart- 32 ment of finance, fails to make a payment pursuant to such agreement, 33 then the department of finance shall, after the first missed payment, 34 mail a letter to the property owner, or other eligible person acting on 35 behalf of an owner, stating that such owner, or other eligible person, 36 is at risk of being in default of such agreement. The letter shall be 37 mailed after the first missed payment if the department has not received 38 payment within two weeks of the due date. 39 c. No later than January thirty-first, two thousand twenty-four, and 40 no later than every January thirty-first thereafter, the department of 41 finance shall submit a report to the mayor and to the speaker of the 42 council on real property with an assessed value of two hundred fifty 43 thousand dollars or less for which: (A) the owner of such real property 44 has entered into an agreement pursuant to this section for the payment 45 in installments of real property taxes, assessments or other charges 46 that are made a lien subject to the provisions of chapter three of this 47 title other than water rents, sewer rents, or sewer surcharges; and (B) 48 such unpaid taxes are subject to the interest rate described in subdivi- 49 sion e of section 11-313 of this chapter for the preceding calendar 50 year, including, but not limited to the following data: 51 1. the number of such agreements executed during the preceding calen- 52 dar year; 53 2. the number of such agreements that were in effect on December thir- 54 ty-first of the preceding calendar year;

S. 8578 291 1 3. the number of applications for such agreements that were received 2 during the preceding calendar year, and the number of such applications 3 that were not approved; 4 4. the average amount of property taxes and charges subject to such 5 agreements; and 6 5. the number of such agreements that entered into default and the 7 number of defaults that were cured. 8 § 11-322.1 Hardship installment agreements. a. Definitions. For 9 purposes of this section, the following terms have the following mean- 10 ings: 11 1. Applicant. The term "applicant" means a property owner who files an 12 application for an installment agreement under this section. Such term 13 includes a property owner who has entered into an installment agreement 14 after filing such an application. 15 2. Default. The term "default" means that an installment payment 16 required under the installment agreement entered into under this section 17 remains unpaid in whole or in part for six months from the date payment 18 is required to be made, or any other tax or charge that becomes due on 19 the property during the term of such agreement remains unpaid in whole 20 or in part for six months. 21 3. Department. The term "department" means the department of finance. 22 4. Dwelling unit. The term "dwelling unit" means a unit in a condomin- 23 ium used primarily for residential purposes. 24 5. Fair market value. The term "fair market value" means the fair 25 market value of property as determined by the department or the fair 26 market value as determined by an appraisal obtained by the applicant 27 pursuant to paragraph four of subdivision g of this section, provided 28 that such appraisal shall be subject to review, and may be rejected, by 29 the department. 30 6. Income. The term "income" means the adjusted gross income for 31 federal income tax purposes as reported on an applicant's federal or 32 state income tax return for the applicable income tax year, subject to 33 any subsequent amendments or revisions; provided that if no such return 34 was filed for the applicable income tax year, "income" means the 35 adjusted gross income that would have been so reported if such a return 36 had been filed. 37 7. Income tax year. The term "income tax year" means the most recent 38 calendar year or fiscal year for which an applicant filed a federal or 39 state income tax return. 40 8. Net equity. The term "net equity" means the fair market value of 41 property minus any liabilities outstanding against such property, such 42 as mortgages, outstanding property taxes, water and sewer charges, and 43 any other liens on such property. 44 9. Property. The term "property" means real property classified as 45 class one pursuant to section eighteen hundred two of the real property 46 tax law or a dwelling unit in a condominium. 47 10. Property owner. The term "property owner" means an owner of real 48 property classified as class one pursuant to section eighteen hundred 49 two of the real property tax law or of a dwelling unit in a condominium, 50 or other eligible person, as defined in subdivision (i) of section 40-03 51 of title nineteen of the rules of the city of New York, acting on behalf 52 of such owner. 53 b. A property owner who satisfies the requirements described in subdi- 54 vision c and d, e or f of this section may enter into an agreement with 55 the department pursuant to this section for the payment in installments 56 of real property taxes, assessments or other charges that are made a

S. 8578 292 1 lien subject to the provisions of this chapter, except for sewer rents, 2 sewer surcharges or water rents. The entry into an installment agreement 3 pursuant to this section shall not suspend the accrual of interest 4 charged against the property pursuant to section 11-301 of this chapter. 5 A property owner may only have one installment agreement with the 6 department in effect at any one time. 7 c. Eligibility requirements for an installment agreement under this 8 section. To be eligible to enter into an installment agreement pursuant 9 to this section, an applicant must demonstrate that the following 10 requirements are met: 11 1. The applicant is a property owner. 12 2. The property shall have been the primary residence of the applicant 13 for an uninterrupted period of not less than one year immediately 14 preceding the date the application for the installment agreement is 15 submitted and continues to be the primary residence of the applicant 16 through the date the installment agreement is entered into. Hospitali- 17 zation or a temporary stay in a nursing home or rehabilitation facility 18 for a period of not more than three years shall not be considered a 19 change in primary residence. 20 3. The combined income of the applicant and of all the additional 21 property owners may not exceed eighty-six thousand four hundred dollars 22 for the income tax year immediately preceding the date of the applica- 23 tion for the installment agreement. The department shall promulgate 24 rules that establish a process for an applicant to seek an exception 25 from the requirement that income information from all additional proper- 26 ty owners be provided in cases of hardship. 27 d. Eligibility requirement for senior low-income installment agree- 28 ment. In addition to the requirements set forth in subdivision c of this 29 section, to be eligible to enter into a senior low-income installment 30 agreement pursuant to subdivision l of this section, an applicant must 31 be sixty-five years of age or older when the application is submitted. 32 e. Eligibility requirement for fixed length income-based installment 33 agreement. To be eligible to enter into a fixed length income-based 34 installment agreement pursuant to subdivision m of this section, an 35 applicant must satisfy the requirements set forth in subdivision c of 36 this section. 37 f. Eligibility requirements for extenuating circumstances income-based 38 installment agreement. In addition to the requirements set forth in 39 subdivision c of this section, for an applicant to be eligible to enter 40 into an extenuating circumstances income-based installment agreement 41 pursuant to subdivision n of this section, the department must make a 42 finding of extenuating circumstances pursuant to the process described 43 in paragraph four of subdivision (e) of section 40-03 of title nineteen 44 of the rules of the city of New York. 45 g. Initial application procedure. 1. An initial application for an 46 installment agreement under this section shall include: 47 (a) for installment agreements that provide for the payment of taxes 48 and charges that will accrue after the date of the installment agree- 49 ment, a title search identifying all mortgages and other liens on the 50 property; and 51 (b) the signature of a primary resident of the property, and if such 52 primary resident does not hold an ownership interest of at least fifty 53 percent in the subject property, the signature of any other owner of the 54 property who, in combination with such primary resident, holds an owner- 55 ship interest of at least fifty percent in such property, consenting to 56 the application for an installment agreement.

S. 8578 293 1 2. A complete application must be submitted to, and approved by, the 2 department. 3 3. An applicant may select a monthly or quarterly payment schedule and 4 may also select the amount that is required to be paid under the appli- 5 cable installment agreement pursuant to the options available pursuant 6 to subdivision l, m or n of this section. 7 4. An applicant who is the property owner of a dwelling unit in a 8 condominium may submit an appraisal obtained by such applicant of the 9 fair market value of such dwelling unit provided that: 10 (a) the valuation date of such appraisal is a date within, and such 11 appraisal shall have been prepared no more than, twelve months prior to 12 submission of an application; 13 (b) the cost of such appraisal shall be borne by such applicant; and 14 (c) the cost of such appraisal may not be included in the amount 15 subject to the installment agreement. 16 h. Renewal. 1. An installment agreement under this section shall 17 terminate unless an applicant files a renewal application each year. At 18 least sixty days before one year from the date such installment agree- 19 ment was entered into or renewed, the department shall mail each appli- 20 cant a renewal application, provided, however, that upon any such 21 renewal application being made by the applicant, any installment agree- 22 ment then in effect with respect to such applicant shall be deemed 23 renewed until such time as the department shall have found such appli- 24 cant to be either eligible or ineligible for the renewal of the install- 25 ment agreement but in no event for more than six additional months. 26 2. To renew an installment agreement under this section, an applicant 27 must submit a renewal application to the department on or before one 28 year from the date such installment agreement was entered into and each 29 year thereafter for which renewal is sought. To be eligible to renew 30 such agreement, an applicant must demonstrate that: 31 (a) the property continues to be the primary residence of such appli- 32 cant and such residence has been uninterrupted since the date the 33 initial installment agreement was entered into; and 34 (b) the combined income of such applicant and of all the additional 35 property owners does not exceed fifty-eight thousand three hundred nine- 36 ty-nine dollars for the income tax year immediately preceding the date 37 of the renewal of such installment agreement, except that an applicant 38 for the renewal of a fixed length income-based installment agreement 39 pursuant to subdivision m of this section is not required to submit 40 income information. 41 i. Effects of installment agreement on tax lien and tax lien sale. 1. 42 The execution of an installment agreement pursuant to this section shall 43 not suspend the accrual of liens, interest and other charges against the 44 property, which continue to accrue in accordance with applicable law. 45 2. A property for which an application has been submitted that 46 contains proof of income and, for a senior low-income installment agree- 47 ment described in subdivision l of this section, proof of age, and that 48 is signed, but is otherwise incomplete, shall be withdrawn from the next 49 tax lien sale. Such property, however, may be included in the tax lien 50 sale subsequent to the next tax lien sale if a completed application is 51 not submitted within forty-five days from the date of the additional 52 information request notice sent to the applicant by the department or if 53 the completed application is denied. 54 j. Amount subject to installment agreement. 1. Each approved install- 55 ment agreement shall set forth terms of repayment, including (a) the 56 frequency of payments, (b) the percentage of the taxes and charges that

S. 8578 294 1 forms the basis of the required payment for the senior low-income 2 installment agreement described in subdivision l of this section, or the 3 percentage of the combined income of the property owners for the income 4 tax year immediately preceding the initial application that forms the 5 basis of the required payment for the installment agreement for the 6 fixed length income-based and the extenuating circumstances income-based 7 installment agreements described in subdivisions m and n respectively, 8 (c) the payment schedule, and (d) the payment amount. 9 2. A lien sold in a tax lien sale before the date of an application 10 for an installment agreement is not eligible to be included in an 11 installment agreement under this section. 12 3. The applicant may choose to include the cost of the title search 13 required to be submitted with an application pursuant to subparagraph 14 (a) of paragraph one of subdivision g of this section in the amount 15 subject to the installment agreement. If an applicant chooses to include 16 such cost, the applicant may either select a title company to conduct 17 the required search and present documentation to the department of the 18 cost, or direct the department to use a title company selected by the 19 department. The department shall pay the cost of the title search and be 20 reimbursed by the applicant through the addition of the cost to the 21 amount subject to the installment agreement. The applicant shall make 22 such reimbursement in the first year of the installment agreement, in 23 monthly or quarterly payments, consistent with the payment frequency 24 selected for the installment agreement. The cost of the title search 25 shall bear interest at the same rate as the interest on unpaid real 26 property tax as provided in section 11-224.1 of this title. 27 4. (a) Any time the amount of the liens on a property subject to an 28 installment agreement under this section exceeds twenty-five percent of 29 the net equity in such property, the applicant shall pay all taxes and 30 charges imposed against the property that exceed twenty-five percent of 31 the net equity in the property as such taxes and charges become due, in 32 addition to the payment amount set forth in the installment agreement. 33 (b) Notwithstanding subparagraph (a) of this paragraph and provided 34 that section five hundred eighty-one of the real property tax law is in 35 effect in the same form as such section was in effect as of the effec- 36 tive date of this section, for property that is a dwelling unit in a 37 condominium subject to an installment agreement under this section and 38 for which an appraisal has not been obtained pursuant to paragraph four 39 of subdivision g of this section, any time the amount of the liens 40 subject to such agreement exceeds fifty percent of the net equity in 41 such property, the applicant shall pay all taxes and charges imposed 42 against such property that exceed fifty percent of the net equity in 43 such property as such taxes and charges become due, in addition to the 44 payment amount set forth in the installment agreement. For property that 45 is a dwelling unit in a condominium and for which an appraisal has been 46 obtained pursuant to paragraph four of subdivision g of this section, 47 any time the amount of the liens subject to an installment agreement 48 under this section exceeds the higher of (i) fifty percent of the net 49 equity in such property based on the fair market value determined by the 50 department; or (ii) twenty-five percent of the net equity in such prop- 51 erty based on the fair market value determined by the appraisal obtained 52 by the applicant, the applicant shall pay all taxes and charges imposed 53 against such property that exceed the higher of the amounts described by 54 clauses (i) and (ii) of this subparagraph as such taxes and charges 55 become due, in addition to the payment amount set forth in the install- 56 ment agreement.

S. 8578 295 1 (c) The department shall provide each applicant with a written projec- 2 tion at the time the installment agreement is entered into as to when 3 the twenty-five or fifty percent threshold, as determined pursuant to 4 subparagraphs (a) and (b) of this paragraph, will be exceeded. The 5 department shall also notify each property owner in writing when the 6 amount of the liens exceeds such threshold. Failure by the department to 7 provide an applicant with such projection or to notify a property owner 8 when the amount of the liens exceeds the applicable threshold, however, 9 shall not affect the validity of the installment agreement that has been 10 entered into, nor shall any claim arise or exist against the commission- 11 er of finance or any officer or agency of the city by reason of such 12 failure to provide such projection or such notification. 13 5. If at any time the department determines that the fair market value 14 of a property subject to an installment agreement under this section has 15 increased, an applicant may request that the net equity in such property 16 be recalculated and the net equity amount included in such installment 17 agreement be adjusted to reflect the recalculated net equity in such 18 property. 19 6. If the combined income of all of the property owners exceeds 20 fifty-eight thousand three hundred ninety-nine dollars for the income 21 tax year immediately preceding the date of making a renewal application 22 pursuant to subdivision h of this section, the applicant shall pay all 23 taxes and charges imposed against the property after the date of such 24 renewal application as such taxes and charges become due, in addition to 25 the payment amount set forth in such installment agreement. 26 k. Termination of installment agreement. 1. An installment agreement 27 shall be terminated when any of the following occurs: 28 (a) The property whose liens are the subject of such installment 29 agreement is no longer the primary residence of the applicant. An appli- 30 cant whose installment agreement has been terminated because of such 31 reason may apply to enter into an installment agreement pursuant to 32 section 11-322 of this chapter. 33 (b) The fixed term of the installment agreement expires. An applicant 34 whose installment agreement has been terminated because of such expira- 35 tion may apply to enter into an installment agreement pursuant to 36 section 11-322 of this chapter or to this section. 37 (c) The applicant is deceased. 38 (d) The applicant opts out of an installment agreement without a fixed 39 term as described in paragraph one of subdivision l of this section. An 40 applicant who opts out of such agreement may apply to enter into an 41 installment agreement pursuant to section 11-322 of this chapter or to 42 this section. 43 (e) The applicant does not file a timely renewal application in 44 accordance with the provisions of subdivision h of this section. 45 (f) The applicant is in default and has not cured such default as 46 provided in subparagraph (a) of paragraph three of this subdivision 47 prior to the next tax lien sale. 48 (g) The applicant has defaulted on the installment agreement and has 49 cured such default by entering into a new installment agreement pursuant 50 to clause two or three of subparagraph (a) of paragraph three of this 51 subdivision. 52 2. If an installment agreement is terminated, all taxes and charges 53 that accrued before such termination are required to be paid. If such 54 taxes and charges are not paid within nine months of such termination, 55 the tax lien or tax liens on such property may be sold. Notwithstanding 56 the preceding sentence, if an agreement is terminated pursuant to

S. 8578 296 1 subparagraph (c) of paragraph one of this subdivision, a surviving 2 spouse has eighteen months from the death of the applicant to pay all 3 taxes and charges on such property before the tax lien or tax liens on 4 such property may be sold. If such surviving spouse is a property owner 5 he or she may enter into a separate installment agreement pursuant to 6 section 11-322 of this chapter or subdivision l, m or n of this section, 7 as long as he or she meets the eligibility requirements for the respec- 8 tive installment agreement. 9 3. (a) An applicant may cure a default by: 10 (i) bringing all installment payments and all current charges, includ- 11 ing but not limited to any interest and fees, that are outstanding at 12 the time of the default to a current status prior to the date of the tax 13 lien sale; 14 (ii) entering into a new installment agreement with a down payment of 15 twenty percent or more, of all delinquent real property taxes, assess- 16 ments, sewer rents, sewer surcharges, water rents and other charges that 17 are made a lien subject to the provisions of this chapter, including any 18 outstanding interest and fees, prior to the date of such sale; or 19 (iii) entering into a new installment agreement under this section if 20 the department has made a finding of extenuating circumstances pursuant 21 to the process described in paragraph four of subdivision (e) of section 22 40-03 of title nineteen of the rules of the city of New York. 23 (b) If a default is not cured prior to the date of the tax lien sale, 24 such applicant shall not be eligible to enter into an installment agree- 25 ment for the subject property for five years, unless the department has 26 made a finding of extenuating circumstances pursuant to the process 27 described in paragraph four of subdivision (e) of section 40-03 of title 28 nineteen of the rules of the city of New York. 29 (c) Notwithstanding the prohibition in subparagraph (b) of this para- 30 graph against entering into an installment agreement for the subject 31 property for five years, an applicant who has defaulted on an install- 32 ment agreement and whose lien has been sold and, after the sale of the 33 lien, whose property on which the lien was sold is subject to another 34 tax lien that is eligible to be sold, may apply to enter into another 35 installment agreement with respect to such other lien before the end of 36 such five-year period, provided that such applicant makes a down payment 37 of twenty percent or more, of all delinquent real property taxes, 38 assessments, sewer rents, sewer surcharges, water rents and other charg- 39 es that are made a lien subject to the provisions of this chapter, 40 including any outstanding interest and fees, prior to the date of the 41 tax lien sale. An applicant shall not be eligible to enter an install- 42 ment agreement with a down payment under this subparagraph more than 43 once for the subject property. 44 (d) If a property owner who has entered into an installment agreement 45 with the department pursuant to this section fails to make a payment 46 pursuant to such agreement, the department shall, after the first missed 47 payment, mail a letter or send an email, when such address is known, to 48 the property owner stating that such owner is at risk of being in 49 default of such agreement. The letter or email shall be sent after the 50 first missed payment if the department has not received payment within 51 two weeks of the due date. Failure by the department to mail such letter 52 or send such email, however, shall not affect the validity of the 53 installment agreement that has been entered into, nor shall any claim 54 arise or exist against the commissioner of finance or any officer or 55 agency of the city by reason of such failure to mail such letter or send 56 such email.

S. 8578 297 1 l. Senior low-income installment agreement. 1. At the option of the 2 applicant, a senior low-income installment agreement may provide for 3 payments for a fixed period of time or for payments without a fixed 4 period of time. If the applicant selects an installment agreement with a 5 fixed time period, the applicant may select the term of the agreement. 6 The applicant may switch from an installment agreement without a fixed 7 time period to an installment agreement with a fixed time period, or 8 from an installment agreement with a fixed time period to an installment 9 agreement without a fixed time period, at any point. 10 2. A senior low-income installment agreement shall provide for the 11 payment of both a percentage of taxes and charges that have accrued, if 12 any, and a percentage of taxes and charges that will accrue after the 13 date of the installment agreement. The applicant may elect to pay an 14 installment amount based on zero percent, twenty-five percent, fifty 15 percent or seventy-five percent of the annual taxes and charges that 16 have accrued, if any, and that will accrue. If the applicant selects an 17 agreement with a fixed time period, the required payment shall be based 18 on the percentage selected and the term selected. If the applicant 19 selects an agreement without a fixed time period, the required payment 20 shall be based on the percentage selected for prospective taxes and 21 charges and a partial or full payment of the percentage of taxes and 22 charges that have accrued, if any. The applicant may adjust the payment 23 percentage at any point during the installment agreement, but may not 24 make more than one such adjustment during any six-month period. 25 m. Fixed length income-based installment agreement. 1. At the option 26 of the applicant, a fixed length income-based installment agreement 27 pursuant to this subdivision may provide for the payment of (a) only 28 taxes and charges that have accrued or (b) taxes and charges that have 29 accrued and taxes and charges that will accrue over the next fiscal 30 year. If option (a) is selected, the applicant shall pay all taxes and 31 charges that become due on the property after the installment agreement 32 is entered into in addition to the payment schedule provided in the 33 installment agreement. If option (b) is selected, the applicant shall 34 pay all taxes and charges that will accrue on the property after the 35 installment agreement has been in effect for one year in addition to the 36 payment schedule provided in the installment agreement. 37 2. The annual payment amount required pursuant to an installment 38 agreement described by this subdivision shall be based on a percentage 39 of the combined income of all of the property owners for the income tax 40 year immediately preceding the initial application for such installment 41 agreement. The applicant may select a percentage of two percent, four 42 percent, six percent or eight percent of such combined income. The 43 installment payment shall be calculated by dividing the annual payment 44 amount by twelve or four, depending on whether a monthly or quarterly 45 payment schedule is selected. The term of the agreement shall be calcu- 46 lated by dividing the taxes and charges included in the agreement pursu- 47 ant to paragraph one of this subdivision by the installment payment 48 determined by the calculation described in this paragraph. 49 3. An applicant may adjust the payment percentage at any point during 50 the installment agreement, but may not make more than one such adjust- 51 ment during any six-month period. 52 n. Extenuating circumstances income-based installment agreement. 1. 53 An extenuating circumstances income-based installment agreement shall 54 provide for the payment, during the period of such agreement, of a 55 percentage of taxes and charges that have accrued on the property and

S. 8578 298 1 taxes and charges that accrue after the date of the installment agree- 2 ment. 3 2. The annual payment amount required pursuant to an installment 4 agreement described by this subdivision shall be based on a percentage 5 of the combined income of all of the property owners for the income tax 6 year immediately preceding the initial application for an installment 7 agreement. The applicant may select a percentage of two percent, four 8 percent, six percent, or eight percent of such combined income. Such 9 installment payment shall be calculated by dividing the annual payment 10 amount by twelve or four, depending on whether a monthly or quarterly 11 payment schedule is selected. The installment agreement shall be for a 12 term of one year but may be extended on a yearly basis if the department 13 determines that the extenuating circumstances continue. 14 3. An applicant may adjust the payment percentage at any point during 15 the installment agreement, but may not make more than one such adjust- 16 ment during any six-month period. 17 o. After an applicant has entered into an installment agreement with 18 the department pursuant to this section, the department shall record the 19 entry of such agreement on the automated city register information 20 access system. Failure by the department to record such agreement, 21 however, shall in no manner affect the validity of such agreement, nor 22 shall any claim arise or exist against the commissioner of finance or 23 any officer or agency of the city by reason of such failure to record. 24 p. All installment agreements executed pursuant to this section on or 25 after the effective date of this subdivision shall include: 26 1. a statement that if payments required from an applicant pursuant to 27 such an agreement are not made for a period of six months, such appli- 28 cant shall be in default of such agreement, and the tax lien or tax 29 liens on the subject property may be sold, provided, however, that such 30 default may be cured upon such applicant's bringing all installment 31 payments and all current charges that are outstanding at the time of the 32 default to a current status, which shall include, but not be limited to, 33 any outstanding interest and fees, prior to the date of the tax lien 34 sale; 35 2. a notification that if such default is not cured prior to the date 36 of the tax lien sale, such property owner shall not be eligible to enter 37 into an installment agreement for the subject property for five years, 38 unless a finding of extenuating circumstances has been made by the 39 department pursuant to the process described in paragraph four of subdi- 40 vision (e) of section 40-03 of title nineteen of the rules of the city 41 of New York; 42 3. the definition of extenuating circumstances pursuant to such para- 43 graph; 44 4. a statement describing the conditions under which the property 45 owner may be eligible, after default, to enter into another installment 46 agreement in accordance with paragraph three of subdivision k of this 47 section; and 48 5. the date by which the applicant must submit a renewal application 49 each year. 50 q. Every January thirty-first, the department shall submit to the 51 speaker of the council a report on the usage of the installment agree- 52 ments set forth in this section in the prior calendar year, including, 53 but not limited to the following data, disaggregated by installment 54 agreement type: 55 1. the number of new installment agreements executed;

S. 8578 299 1 2. the number of installment agreements in effect on December thirty- 2 first of each year; 3 3. the number of applications for installment agreements received, the 4 number of applications not approved, and the reasons for disapproval; 5 4. for the senior low-income installment agreements, the number of new 6 installment agreements executed at zero percent, twenty-five percent, 7 fifty percent and seventy-five percent; 8 5. for the fixed length and extenuating circumstances income-based 9 installment agreements, the number of new installment agreements 10 executed at two percent, four percent, six percent or eight percent; 11 6. the average amount of property taxes and charges addressed by the 12 installment agreement; 13 7. the number of installment agreements that entered into default, the 14 number of defaults that were cured and the method by which they were 15 cured; 16 8. the number of installment agreements that were terminated, by 17 reason of termination; 18 9. the number of installment agreements that were renewed, including 19 whether such renewal occurred before or during the six-month period 20 described in paragraph one of subdivision h of this section; and 21 10. the number of installment agreements where the amount of liens on 22 the subject property exceeded the applicable percent of the net equity 23 in such property. 24 r. The department shall publicize the availability of the installment 25 agreements set forth in this section so as to maximize public awareness 26 of such agreements. 27 § 11-323 Commissioner of finance to conduct sale. The commissioner of 28 finance or his or her designee shall conduct the sales hereinbefore 29 provided to be made, or the commissioner may, in his or her discretion, 30 contract with any other person to conduct competitive sales of tax 31 liens. 32 § 11-324 Deposits and forfeits. The commissioner of finance may 33 require from each purchaser of a tax lien or tax liens, in cash or cash 34 equivalent in immediately available funds in the discretion of such 35 commissioner, a deposit of at least five per cent of the cash portion of 36 the sale price of the tax lien or tax liens purchased by him or her, as 37 liquidated damages, on a date determined by the commissioner of finance. 38 The balance shall be paid to the commissioner of finance in cash or cash 39 equivalent in immediately available funds or such other consideration 40 acceptable to the commissioner of finance or any combination thereof, in 41 his or her discretion. For purposes of this chapter "cash equivalent" 42 shall mean a cashier's check, bank check, certified check, money order, 43 or such other paper instrument as the commissioner of finance shall 44 prescribe. Such deposit and balance may also be paid by electronic funds 45 transfer. For purposes of this chapter, "electronic funds transfer" 46 shall mean any transfer of funds, other than a transaction originated by 47 check, draft or similar paper instrument, which is initiated using a 48 format prescribed by the commissioner of finance. A tax lien certificate 49 shall be made and delivered to the purchaser upon payment of the sale 50 price. In case any purchaser shall default in any obligation under the 51 terms and conditions of the tax lien sale, then the amount deposited by 52 the purchaser shall be forfeited to the city, and the tax lien or tax 53 liens upon the property affected by such purchase may be sold again at 54 the discretion of the commissioner of finance pursuant to section 11-319 55 of this chapter. All deposits forfeited as aforesaid shall be paid into 56 the general fund.

S. 8578 300 1 § 11-327 Tax lien certificates; operation. A tax lien certificate 2 shall operate to transfer and assign the tax lien upon the property 3 described therein for the taxes, assessments, sewer rents, sewer 4 surcharges, water rents, any other charges that are made a lien subject 5 to the provisions of this chapter, the costs of any notices and adver- 6 tisements given pursuant to this chapter, any other charges that are due 7 and payable, a surcharge pursuant to section 11-332 of this chapter, and 8 interest and penalties thereon. 9 § 11-328 Contents of a tax lien certificate. A tax lien certificate 10 shall contain a transfer and assignment by the city of the tax lien sold 11 to the purchaser, the date of the sale, the aggregate amount of the tax 12 lien so transferred, and the items of taxes, assessments, sewer rents, 13 sewer surcharges, water rents, any other charges that are made a lien 14 subject to the provisions of this chapter, the costs of any advertise- 15 ments and notices given pursuant to this chapter, any other charges that 16 are due and payable, a surcharge pursuant to section 11-332 of this 17 chapter, and interest and penalties thereon comprising the tax lien, the 18 rate of interest which the tax lien certificate will bear, the date when 19 the amounts under such tax lien are due pursuant to section 11-332 of 20 this chapter, and a description of the property affected by the tax 21 lien, which description shall include the designation of such property 22 on the tax map, by its lot number and the number of the block in which 23 it is contained, and such other identifying information as the commis- 24 sioner of finance or his or her designee may deem proper to add. For 25 purposes of this section, the words "date of sale" shall have the same 26 meaning provided in subdivision (e) section 11-320 of this chapter. Each 27 tax lien certificate shall be executed by the commissioner of finance or 28 his or her designee by manual or facsimile signature and shall be 29 acknowledged by the manual or facsimile signature of the officer 30 subscribing the same in the manner in which a deed is required to be 31 acknowledged to be recorded in the county in which the property affected 32 is situated. The commissioner of finance may designate an agent for 33 purposes of authenticating any such signature. 34 § 11-330 Record of tax lien certificates. The commissioner of finance 35 or his or her designee, shall keep in his or her office a public record 36 of sales of tax liens, and a copy of each tax lien certificate issued by 37 such commissioner or his or her designee. Assignments of tax lien 38 certificates duly acknowledged may be filed and recorded in the office 39 of the commissioner of finance or his or her designee. A tax lien 40 certificate and any assignment thereof, duly acknowledged, shall be 41 deemed conveyances under article eight of the real property law, and may 42 be recorded in the office of the recording officer of any county in 43 which the real property which it affects is situated. Tax lien certif- 44 icates and all assignments thereof shall be recorded by recording offi- 45 cers in the same manner as mortgages and assignments thereof, but with- 46 out payment of tax under article eleven of the tax law. Neither the tax 47 lien nor the rights transferred or created by a tax lien certificate 48 shall be impaired by failure of a recording officer to record a tax lien 49 certificate made by the city through the commissioner of finance or his 50 or her designee. 51 § 11-331 Records to be competent evidence. The record in the office of 52 the commissioner of finance or his or her designee of sales of tax 53 liens, of a tax lien certificate, and of a copy of a tax lien certif- 54 icate, and of an assignment of a tax lien certificate, a record of a tax 55 lien certificate in the office of a recording officer, and of an assign- 56 ment of a tax lien certificate, duly acknowledged, in the office of a

S. 8578 301 1 recording officer, shall each be evidence in any court in the state 2 without further proof. A transcript of any record enumerated in this 3 section, duly certified, shall be evidence in any court in the state 4 with like effect as the original instrument of record. 5 § 11-332 Rights of purchaser of tax lien. a. Any purchaser of a tax 6 lien or tax liens shall stand in the same position as the city and shall 7 have all the rights and remedies that the city would have had if the tax 8 lien or tax liens had not been sold. 9 b. The aggregate amount of each tax lien transferred pursuant to this 10 chapter shall be due and payable one year from the date of the sale. 11 Until such aggregate amount is fully paid and discharged, the holder of 12 the tax lien certificate shall be entitled to receive interest on such 13 aggregate amount from the date of sale, and semi-annually at the rate of 14 interest applicable in accordance with section 11-319 of this chapter. 15 If such aggregate amount is partially paid, the holder of the tax lien 16 certificate shall be entitled to receive interest only on the amount 17 that remains unpaid. Notwithstanding the foregoing sentence, the holder 18 of the tax lien certificate shall be entitled to receive and retain a 19 surcharge equal to five percent of the lien arising pursuant to the 20 provisions of this chapter as a result of the nonpayment of taxes, 21 assessments, sewer rents, sewer surcharges, water rents, any other 22 charges that are made a lien subject to the provisions of this chapter, 23 the costs of any advertisements and notices given pursuant to this chap- 24 ter, any other charges that are due and payable, and interest and penal- 25 ties thereon. Any amounts due shall be paid directly to the holder of 26 the tax lien certificate. At the option of the holder of any tax lien 27 certificate the aggregate amount thereof shall become subject to fore- 28 closure after default in the payment of interest for thirty days or 29 after default for six months after the date of sale stated in the tax 30 lien certificate in accordance with subdivision (d) of section 11-320 31 and section 11-328 of this chapter in the payment of any taxes, assess- 32 ments, sewer rents, sewer surcharges, water rents, any other charges 33 that are made a lien subject to the provisions of this chapter, or the 34 interest or penalties thereon which become a lien on or after the date 35 of sale of the tax lien transferred by such tax lien certificate. At his 36 or her option, the holder of the tax lien certificate may satisfy any 37 such subsequent tax lien on the same property, and shall, by virtue of 38 such satisfaction, be deemed to be in the same position as if he or she 39 were a purchaser of a tax lien certificate for such subsequent tax lien, 40 provided, however, that such holder shall not be entitled to receive a 41 five percent surcharge on such subsequent tax lien pursuant to this 42 section. The rate of interest on such subsequent lien shall be the rate 43 of interest applicable to tax lien certificates pursuant to section 44 11-319 of this chapter. The commissioner of finance or his or her desig- 45 nee, at the request of the purchaser of such subsequent lien, shall 46 issue a tax lien certificate for such lien pursuant to sections 11-327 47 and 11-328 of this chapter. Upon issuance of such certificate, the 48 commissioner of finance or his or her designee shall provide such notice 49 as is required pursuant to section 11-320(d) of this chapter. Failure to 50 provide notice pursuant to this subdivision shall not affect the validi- 51 ty of any transfer of a subsequent tax lien or tax liens pursuant to 52 this subdivision. Any person having a legal or beneficial interest in 53 property affected by a tax lien certificate may satisfy the same at any 54 time upon payment of the amounts due with interest at the rate applica- 55 ble in accordance with section 11-319 of this chapter. Upon satisfaction 56 of the tax lien, the holder thereof shall issue to the person who satis-

S. 8578 302 1 fied such tax lien a certificate of discharge, certifying that the tax 2 lien has been paid or has been otherwise satisfied, in such recordable 3 form as has been approved by the commissioner of finance. For purposes 4 of this section, the words "date of sale" shall have the same meaning 5 provided in subdivision (e) of section 11-320 of this chapter. 6 § 11-333 Discharge of tax lien. A tax lien sold pursuant to the 7 provisions of this chapter may be discharged by presenting the certif- 8 icate of discharge issued by the holder of the tax lien pursuant to 9 section 11-332 of this chapter to the recording officer of the county in 10 which the real property that it affects is situated, and any recording 11 officer to whom such certificate of discharge is presented shall record 12 the same. 13 § 11-334 Exemption from taxation. Tax liens and tax lien certificates 14 shall be exempt from taxation by the state or any local subdivisions 15 thereof, except from the taxes imposed by article ten of the tax law. 16 The real property affected by any tax lien shall not be exempt from 17 taxation by reason of this section. 18 § 11-335 Foreclosure of tax liens. If the amount of any tax lien which 19 shall have been transferred by a tax lien certificate shall not be paid 20 when under its terms and the provisions of section 11-332 of this chap- 21 ter such amount shall be due, the holder of such tax lien certificate 22 may maintain an action in the supreme court to foreclose such tax lien. 23 The holder of such tax lien certificate shall notify the commissioner of 24 finance or his or her designee in writing whenever he or she commences 25 such action at the time of filing of such action, and shall notify the 26 commissioner of finance in writing of the resolution of such action, 27 including any settlement of such action, within thirty days of such 28 resolution. In an action to foreclose a tax lien any person shall be a 29 proper party of whom the plaintiff alleges that such person has or may 30 have or that the plaintiff has reason to believe that such person has or 31 may have an interest in or claim upon the property affected by the tax 32 lien. A plaintiff in an action to foreclose a tax lien shall recover 33 reasonable attorney's fees for maintaining such action. Except as other- 34 wise provided in this chapter an action to foreclose a tax lien shall be 35 regulated by the provisions of the civil practice law and rules and by 36 all other provisions of law, and rules of practice applicable to actions 37 to foreclose mortgages on real property. The people of the state of New 38 York or the city of Staten Island may be made party to an action to 39 foreclose a tax lien in the same manner as a natural person. Where the 40 people of the state of New York or the city of Staten Island are made a 41 party defendant the complaint shall set forth, in addition to the other 42 matters required to be set forth by law, detailed facts showing the 43 particular nature of the interest in or the lien on such property of the 44 people of the state of New York or the city of Staten Island, and 45 detailed facts showing the particular nature of the interest in or the 46 lien on such property which plaintiff has reason to believe that the 47 people of the state of New York or the city of Staten Island have or may 48 have in such property, and the reason for making the people of the state 49 of New York or the city of Staten Island a party defendant. Upon failure 50 to state such facts the complaint shall be dismissed as to the people of 51 the state or the city of Staten Island. 52 § 11-336 Pleading tax lien certificate. Whenever a cause of action, 53 defense or counterclaim, is for the foreclosure of a tax lien, or is in 54 any manner founded upon a tax lien or a tax lien certificate, the 55 production in evidence of an instrument executed by the commissioner of 56 finance or his or her designee in the form prescribed in section 11-328

S. 8578 303 1 of this chapter for a tax lien certificate subscribed by or in behalf of 2 the commissioner of finance or his or her designee shall be presumptive 3 evidence that the lien purported to be transferred by such an instrument 4 was a valid and enforceable lien, and that it has been duly assigned to 5 the purchaser, and it shall not be necessary to plead or prove any act, 6 proceeding, notice or action, preceding the delivery of such tax lien 7 certificate nor to establish the validity of the tax lien transferred by 8 such tax lien certificate. If a party or person in interest in any such 9 action or proceeding claims that a tax lien is irregular or invalid, or 10 that there is any defect therein or that a tax lien certificate is 11 irregular, invalid or defective, such invalidity, irregularity or defect 12 must be specifically pleaded or set forth, and must be established 13 affirmatively by the party or person pleading or setting forth the same. 14 § 11-337 Judgment upon tax lien. In every action for the foreclosure 15 of a tax lien, and in every action or proceeding in which a cause of 16 action, defense or counterclaim is in any manner founded upon a tax lien 17 or a tax lien certificate, such tax lien certificate and the tax lien 18 which it transfers shall be presumed to be regular and valid and effec- 19 tual to transfer to the purchaser named therein a valid and enforceable 20 tax lien. Unless in such an action or proceeding such tax lien or tax 21 lien certificate be found to be invalid, they shall be adjudged to be 22 enforceable and valid, for the amount thereof and the interest to which 23 the holder may be entitled and a tax lien transferred by a tax lien 24 certificate effectual to transfer such tax lien to the purchaser named 25 therein. 26 § 11-338 Judgment of foreclosure of tax lien; sale. In an action to 27 foreclose a tax lien, unless the defendants obtain judgment, the plain- 28 tiff shall be entitled to a judgment establishing the validity of the 29 tax lien so far as the same shall not be adjudged invalid and of the tax 30 lien certificate and directing the sale of the real, personal or mixed 31 property affected thereby, or such part thereof as shall be sufficient 32 to discharge the tax lien, or such items thereof as shall not be 33 adjudged invalid together with the expense of the sale, and the costs of 34 the action. 35 § 11-339 City may purchase at sale. At a sale pursuant to judgment in 36 an action to foreclose a tax lien or at any sale free of tax liens, the 37 city, without authorization other than hereby given, may purchase any 38 property that is the subject of the sale. 39 § 11-340 Effect of judgment foreclosing tax lien. Every final judg- 40 ment in an action to foreclose a tax lien shall be binding upon, and 41 every conveyance upon a sale pursuant thereto, shall transfer to and 42 vest in the purchaser all the right, title, interest and estate in and 43 claim upon the real property affected by such judgment, of the plain- 44 tiff, each defendant upon whom the summons is served, each person claim- 45 ing from, through or under such a defendant by title accruing after the 46 filing of notice of pendency of the action or after the entry of judg- 47 ment and filing of the judgment roll in the proper county clerk's 48 office, and each person not in being when the judgment is rendered, who 49 afterwards may become entitled to a beneficial interest attaching to, or 50 an estate or interest in such real property or any portion thereof, 51 provided that the person presumptively entitled to such beneficial 52 interest, estate or interest is a party to such action or bound by such 53 judgment. So much of section three hundred seventeen of the civil prac- 54 tice law and rules as requires the court to allow a defendant to defend 55 an action after final judgment shall not apply to an action to foreclose 56 a tax lien. Delivery of the possession of real property affected by a

S. 8578 304 1 judgment to foreclose a tax lien may be compelled in the manner 2 prescribed in section two hundred twenty-one of the real property 3 actions and proceedings law. 4 § 11-341 Surplus. Any surplus of the proceeds of the sale, after 5 paying the expenses of the sale, and all taxes, assessments, sewer 6 rents, sewer surcharges, water rents, any other charges made a lien 7 subject to the provisions of this chapter, the costs of any advertise- 8 ments and notices given pursuant to this chapter, any other charges that 9 are due and payable, any surcharge pursuant to section 11-332 of this 10 chapter and interest and penalties thereon, including such amounts which 11 accrued or became a lien on and after the date of sale of the tax lien 12 or tax liens and up to and including the date of the sale of the proper- 13 ty in foreclosure, and satisfying the amount of such tax lien or tax 14 liens and interest and the costs of the action, must be paid into court, 15 for the use of the person or persons entitled thereto. If any part of 16 the surplus remains in court for the period of three months, and no 17 application has been made therefor, the court must, and, if an applica- 18 tion therefor is pending, the court may direct such surplus to be 19 invested at interest, for the benefit of the person or persons entitled 20 thereto, to be paid upon the direction of the court. 21 § 11-342 Foreclosed tax lien not arrears. Any party to an action to 22 foreclose a tax lien or any purchaser or any party in interest may give 23 notice of such foreclosure to the city collector and after such notice 24 the items which constituted the tax lien thus foreclosed shall not be 25 entered by the city collector in any yearly assessment-roll, so long as 26 the judgment of foreclosure of such lien remains in force. 27 § 11-347 Corporation counsel to protect city in all proceedings relat- 28 ing to tax liens. It shall be the duty of the corporation counsel to 29 protect the interest of the city in all matters, actions and proceedings 30 relating to tax liens and tax lien certificates; to intervene on behalf 31 of the city or to make the city a party to any action in which the 32 corporation counsel believes it to be to the interest of the city so to 33 do, by reason of any matter arising under or relating to any tax lien or 34 tax lien certificate, or advertisement of sale of tax liens. The corpo- 35 ration counsel in his or her discretion may represent the purchaser of a 36 tax lien or the holder of a tax lien certificate in any action in which 37 the corporation counsel believes it to be in the interest of the city so 38 to do, by reason of any matter arising under or relating to any tax lien 39 or tax lien certificate, or advertisement of sale of tax liens. All 40 costs recovered in any action or proceeding conducted or defended by the 41 corporation counsel pursuant to this section shall belong to the city 42 and shall be collected, applied and disposed of in the same manner as 43 are other costs recovered by the city. 44 § 11-349 Lost tax lien certificate; delivery of duplicate in case of. 45 Whenever any tax lien certificate given by the commissioner of finance 46 or his or her designee, as in this chapter provided, shall be lost, the 47 commissioner of finance or his or her designee may receive evidence of 48 such loss, and on satisfactory proof of the fact may direct the 49 execution and delivery of a duplicate to such person or persons who 50 shall appear entitled thereto, and may also, in the commissioner's 51 discretion, require a bond of indemnity to the city. 52 § 11-350 Affidavits of publication and mailing of necessary notices to 53 be preserved. It shall be the duty of the commissioner of finance or his 54 or her designee to procure, preserve and register at the department of 55 finance, affidavits of the publication and mailing of all the advertise- 56 ments and notices by this chapter required to be published and mailed,

S. 8578 305 1 and such affidavits shall be presumptive proof of such publication and 2 mailing in all the courts of this state. 3 § 11-353 Cancellation of taxes, assessments, water rents, sewer rents, 4 sewer surcharges, any charges that are made a lien subject to the 5 provisions of this chapter, the costs of any advertisements and notices 6 given pursuant to this chapter, any other charges that are due and paya- 7 ble, a surcharge pursuant to section 11-332 of this chapter, and inter- 8 est and penalties thereon. Whenever the city has heretofore or shall 9 hereafter become vested with title to property acquired by virtue of tax 10 enforcement foreclosure proceedings, or by deed in lieu thereof, the 11 commissioner of finance, or his or her designee, shall cancel all unpaid 12 real estate taxes, tax lien certificates, assessments, water rents, 13 sewer rents, sewer surcharges, any charges that are made a lien subject 14 to the provisions of this chapter, the costs of any advertisements and 15 notices given pursuant to this chapter, any other charges that are due 16 and payable, a surcharge pursuant to section 11-332 of this chapter, and 17 interest and penalties thereon upon which the foreclosure action was 18 predicated. Upon the sale of such property and the conveyance of the 19 title thereof by the city, the commissioner of finance, or his or her 20 designee, shall cancel all unpaid real estate taxes, assessments, water 21 rents, sewer rents, sewer surcharges, any charges that are made a lien 22 subject to the provisions of this chapter, the costs of any advertise- 23 ments and notices given pursuant to this chapter, any other charges that 24 are due and payable, a surcharge pursuant to section 11-332 of this 25 chapter, and interest and penalties thereon that shall have accrued 26 during the period between the date of the last unpaid item upon which 27 the foreclosure action was predicated and the date of conveyance of 28 title. The commissioner of finance, or his or her designee, shall enter 29 notations of such cancellations in the appropriate records for each such 30 parcel of property. 31 § 11-354 Additional method to enforce payment of tax liens held by the 32 city. (a) Notwithstanding any other provision of law and notwithstanding 33 any omission to hold a tax lien sale, whenever any tax, assessment, 34 sewer rent, sewer surcharge, water rent, any charge that is made a lien 35 subject to the provisions of this chapter or chapter four of this title, 36 or interest and penalties thereon, has been due and unpaid for a period 37 of at least one year from the date on which the tax, assessment or other 38 legal charge represented thereby became a lien, or in the case of any 39 class one property or any class two property that is a residential 40 condominium or residential cooperative, as such classes of property are 41 defined in subdivision one of section eighteen hundred two of the real 42 property tax law, or in the case of a multiple dwelling owned by a 43 company organized pursuant to article eleven of the private housing 44 finance law with the consent and approval of the department of housing 45 preservation and development, for a period of at least three years from 46 the date on which the tax, assessment or other legal charge became a 47 lien, the city, as owner of a tax lien, may maintain an action in the 48 supreme court to foreclose such lien. Such action shall be governed by 49 the procedures set forth in section 11-335 of this chapter; provided, 50 however, that such parcel shall only be sold to the highest responsible 51 bidder. Such purchaser shall be deemed qualified as a responsible bidder 52 pursuant to such criteria as are established in rules promulgated by the 53 commissioner of finance after consultation with the commissioner of 54 housing preservation and development. 55 (b) At a sale pursuant to a judgment in an action brought pursuant to 56 subdivision (a) of this section to foreclose a tax lien, the city may

S. 8578 306 1 purchase property subject to such lien in accordance with the provisions 2 of section 11-339 of this chapter. 3 (c) The provisions of this section shall not affect any existing reme- 4 dy or procedure for the enforcement or foreclosure of tax liens provided 5 for in this code or any other law, but the remedy provided herein for 6 foreclosure of tax liens shall be in addition to any other remedies or 7 procedures provided by any general, special or local law. Notwithstand- 8 ing any other provision of this code, the commissioner of finance shall 9 be authorized to agree to forebear to commence an in rem action against 10 property which has an outstanding and unredeemed tax lien certificate 11 previously sold by the city and held by a third party pursuant to this 12 chapter. 13 § 11-355 Reporting. The commissioner of finance shall submit an annual 14 report to the council concerning the sale or sales of tax liens during 15 the preceding year pursuant to this chapter. Such report shall include 16 the following information regarding such sale or sales: a list of prop- 17 erties for which a tax lien or tax liens has or have been sold, includ- 18 ing identification of the particular tax lien or tax liens sold; the 19 proceeds received from the sale or sales of tax liens; identification of 20 the purchaser of and servicer for the tax lien or tax liens sold; a 21 report of servicer activities during the immediately preceding year; the 22 redemption rate for tax liens that have been sold; the delinquency rate 23 for real property taxes for the immediately preceding year; and any 24 other information pertinent to the sale of tax liens that may be 25 requested by the council and which is not made confidential pursuant to 26 section 11-208.1 of this code. Upon request by the council, information 27 provided in such report shall be arranged by community board. In addi- 28 tion to such report, the commissioner of finance shall from time to time 29 provide any other information pertinent to the sale of tax liens that 30 may be requested by the council and which is not made confidential 31 pursuant to section 11-208.1 of the code, including updated information 32 regarding the sale or sales of tax liens pursuant to this chapter. In 33 addition to such report, no later than August thirty-first, two thousand 34 twenty, the commissioner shall provide to the council a report listing 35 all properties on which liens have been sold during the period from 36 January first, two thousand fifteen through December thirty-first, two 37 thousand nineteen. The report shall indicate, based on records in the 38 office of the register, whether a transfer of or mortgage recorded on 39 any of such properties has occurred during such period after the sale of 40 any tax lien sold during such period. 41 CHAPTER 4 42 TAX LIEN FORECLOSURE BY ACTION IN REM 43 § 11-401 Definitions. Whenever used in this chapter, the following 44 terms shall mean: 45 1. "Tax lien." The lien arising as a result of the nonpayment of 46 taxes, assessments, sewer rents, sewer surcharges, water rents, any 47 other charges that are made a lien subject to the provisions of this 48 chapter or chapter three of this title, interest and penalties thereon, 49 and the right of the city to receive such amounts. 50 2. "Court." The supreme court. 51 3. "Class." Any class of real property defined in subdivision one of 52 section eighteen hundred two of the real property tax law, and any 53 subclassification of class two real property where such subclassifica-

S. 8578 307 1 tion is established by rule of the commissioner of finance promulgated 2 pursuant to this subdivision. 3 4. "Distressed property." Any parcel of class one or class two real 4 property that is subject to a tax lien or liens that result from an 5 environmental control board judgment against the owner of such parcel 6 for a building code violation with a lien or liens to value ratio, as 7 determined by the commissioner of finance, equal to or greater than 8 twenty-five percent or any parcel of class one or class two real proper- 9 ty that is subject to a tax lien or liens with a lien or liens to value 10 ratio, as determined by the commissioner of finance, equal to or greater 11 than fifteen percent and that meets one of the following two criteria: 12 i. such parcel has an average of five or more hazardous or immediately 13 hazardous violations of record of the housing maintenance code per 14 dwelling unit; or 15 ii. such parcel is subject to a lien or liens for any expenses 16 incurred by the department of housing preservation and development for 17 the repair or the elimination of any dangerous or unlawful conditions 18 therein, pursuant to section 27-2144 of this code, in an amount equal to 19 or greater than one thousand dollars. 20 § 11-401.1 Procedures for distressed property. a. The commissioner of 21 finance shall, not less than sixty days preceding the date of the sale 22 of a tax lien or tax liens, submit to the commissioner of housing pres- 23 ervation and development a description by block and lot, or by such 24 other identification as the commissioner of finance may deem appropri- 25 ate, of any parcel of class one or class two real property on which 26 there is a tax lien that may be foreclosed by the city. The commissioner 27 of housing preservation and development shall determine, and direct the 28 commissioner of finance, not less than ten days preceding the date of 29 the sale of a tax lien or tax liens, whether any such parcel is a 30 distressed property as defined in subdivision four of section 11-401 of 31 this chapter. Any tax lien on a parcel so determined to be a distressed 32 property shall not be included in such sale. In connection with a subse- 33 quent sale of a tax lien or tax liens, the commissioner of finance may, 34 not less than sixty days preceding the date of the sale, resubmit to the 35 commissioner of housing preservation and development a description by 36 block and lot, or by such other identification as the commissioner of 37 finance may deem appropriate, of any parcel of class one or class two 38 real property that was previously determined to be a distressed property 39 pursuant to this paragraph and on which there is a tax lien that may be 40 included in such sale. The commissioner of housing preservation and 41 development shall determine, and direct the commissioner of finance, not 42 less than ten days preceding the date of the sale, whether such parcel 43 remains a distressed property. If the commissioner of housing preserva- 44 tion and development determines that the parcel is not a distressed 45 property, then the tax lien on the parcel may be included in the sale. 46 b. The commissioner of housing preservation and development may peri- 47 odically review whether a parcel of class one or class two real property 48 that is subject to subdivision c of this section or subdivision j of 49 section 11-412.1 of this chapter remains a distressed property. If the 50 commissioner determines that the parcel is not a distressed property as 51 defined in subdivision four of section 11-401 of this chapter, then the 52 parcel shall not be subject to such subdivisions. 53 c. Any parcel so determined to be a distressed property shall be 54 subject to an in rem foreclosure action, or in the case where the 55 commissioner of finance does not commence such action the commissioner 56 of housing preservation and development shall evaluate such parcel and

S. 8578 308 1 take such action as he or she deems appropriate under the programs, 2 existing at the time of such evaluation, that are designed to encourage 3 the rehabilitation and preservation of existing housing, and shall moni- 4 tor or cause to be monitored the status of the property. The commission- 5 er of housing preservation and development, in his or her discretion, 6 shall cause an inspection to be conducted on any parcel so determined to 7 be a distressed property. In addition, the commissioner of housing pres- 8 ervation and development shall submit to the council a list of all 9 parcels so determined to be a distressed property within thirty days 10 from the date such parcels are identified as a distressed property. 11 § 11-402 Applicability of procedure of foreclosure in rem. a. The 12 provisions of this chapter shall be applicable only to tax liens owned 13 by the city. 14 b. The provisions of this chapter shall not affect any existing remedy 15 or procedure for the enforcement or foreclosure of tax liens provided 16 for in this code or any other law, but the remedy provided herein for 17 foreclosure by action in rem shall be in addition to any other remedies 18 or procedures provided by any general, special or local law. 19 c. The provisions of this chapter shall not affect pending actions or 20 proceedings, provided, however, that any pending action or proceeding 21 for the enforcement or foreclosure of tax liens may be discontinued, and 22 a new action may be instituted pursuant to the provisions of this chap- 23 ter, in respect to any such tax lien. 24 § 11-402.1 Inapplicability of article eleven of the real property tax 25 law to the enforcement of the collection of delinquent taxes. In accord- 26 ance with section six of chapter six hundred two of the laws of nineteen 27 hundred ninety-three and subdivision two of section eleven hundred four 28 of the real property tax law, it is hereby provided that the collection 29 of delinquent taxes shall continue to be enforced pursuant to chapters 30 three and four of title eleven of this code and other related provisions 31 of the charter and this code as such chapters three and four and such 32 related provisions may from time to time be amended and that article 33 eleven of the real property tax law shall not be applicable to the city. 34 § 11-403 Jurisdiction. The supreme court shall have jurisdiction of 35 actions authorized by this chapter. 36 § 11-404 Foreclosure by action in rem. a. Whenever it shall appear 37 that a tax lien or tax liens has or have been due and unpaid for a peri- 38 od of at least one year from the date on which the tax, assessment or 39 other legal charge represented thereby became a lien, such tax lien or 40 tax liens, except as provided in subdivision b of this section or other- 41 wise provided by this chapter, may be summarily foreclosed in the manner 42 provided in this chapter, notwithstanding the provisions of any general, 43 special or local law and notwithstanding any omission to hold a sale of 44 a tax lien or tax liens prior to such foreclosure. A bill of arrears or 45 any other instrument evidencing such tax lien or tax liens shall be 46 evidence of the fact that the tax lien or tax liens represented thereby 47 has not or have not been paid to the city or sold by it. 48 b. A tax lien on any class one property or any class two property that 49 is a residential condominium or residential cooperative, as such classes 50 of property are defined in subdivision one of section eighteen hundred 51 two of the real property tax law, and on any multiple dwelling owned by 52 a company organized pursuant to article eleven of the private housing 53 finance law with the consent and approval of the department of housing 54 preservation and development, shall not be foreclosed in the manner 55 provided in this chapter until such tax lien has been due and unpaid for

S. 8578 309 1 a period of at least three years from the date on which the tax, assess- 2 ment or other legal charge represented thereby became a lien. 3 § 11-405 Preparation and filing of lists of delinquent taxes. a. The 4 commissioner of finance from time to time shall prepare a list, to be 5 known as a "list of delinquent taxes", of all parcels, or all parcels 6 within a particular class or classes, that are within a particular 7 section of a tax map or portion of a section of a tax map of the city 8 and on which there are tax liens subject to foreclosure pursuant to this 9 chapter, provided, however, that no such portion shall be smaller than a 10 block, as defined in subdivision d of section 11-204 of subchapter one 11 of chapter two of this title. Every such list shall bear a caption 12 containing the in rem action number of the city's tax foreclosure 13 proceeding, the section of a tax map or portion of a section of a tax 14 map, and where the action covers less than all parcels in a section of a 15 tax map or portion of a section of a tax map, the particular class or 16 classes, and shall contain a statement of the rate or rates at which 17 interest and penalties will be computed for the various liens it 18 includes. 19 b. Every such list shall set forth the parcels it includes separately 20 and number them serially. For each parcel it shall contain (1) a brief 21 description sufficient to identify the parcel, including section, block 22 and lot numbers, and the street and street number, if any, or in the 23 absence of such information the parcel or tract identification number 24 shown on a tax map or on a map filed in the county clerk's or register's 25 office and (2) a statement of the amounts and dates of all unpaid tax 26 liens which are subject to foreclosure under this chapter and of those 27 which have accrued thereafter. 28 c. (1) The commissioner of finance may exclude or thereafter remove 29 from such list any parcels (i) as to which questions the commissioner 30 deems meritorious have been raised regarding the validity of the liens, 31 (ii) as to which all the taxes and other charges which rendered said 32 parcels eligible for inclusion in said list have been paid, or (iii) 33 which are owned by an entity other than a company organized pursuant to 34 article eleven of the private housing finance law with the consent and 35 approval of the department of housing preservation and development and 36 which are not owner-occupied residential buildings of not more than five 37 residential units and as to which an agreement has been duly made, 38 executed and filed with such commissioner for the payment of the delin- 39 quent taxes, assessments or other legal charges, interest and penalties 40 in installments. The first installment shall be paid upon the filing of 41 the installment agreement with the commissioner and shall be in an 42 amount of not less than fifteen percent of such delinquent taxes, 43 assessments or other legal charges, interest and penalties. The remain- 44 ing installments, which shall be twice the number of unpaid quarters of 45 real estate taxes or the equivalent thereof but which shall in no event 46 exceed thirty-two in number, shall be payable quarterly on the first day 47 of July, October, January and April. For the purposes of calculating the 48 number of such remaining installments unpaid real estate taxes which 49 are, on and after July first, nineteen hundred eighty-two, due and paya- 50 ble on an other than quarterly basis shall be deemed to be payable on a 51 quarterly basis. 52 (2) The commissioner of finance may also exclude or thereafter remove 53 from such list any parcels which are owned by a company organized pursu- 54 ant to article eleven of the private housing finance law with the 55 consent and approval of the department of housing preservation and 56 development, and (i) as to which an agreement has been duly made,

S. 8578 310 1 executed and filed with said commissioner for the payment of the delin- 2 quent taxes, assessments or other legal charges incurred prior to the 3 ownership of said parcel by said article eleven company, and the inter- 4 est and penalties thereon, in installments. The first installment there- 5 of shall be paid upon the filing of the installment agreement with the 6 commissioner and shall be in an amount of not less than ten percent of 7 such delinquent taxes, assessments or other legal charges and the inter- 8 est and penalty thereon. The remaining installments, which shall be 9 three times the number of unpaid quarters of real estate taxes or the 10 equivalent thereof but which shall in no event exceed forty-eight in 11 number shall be payable quarterly on the first days of July, October, 12 January and April. For the purposes of calculating the number of such 13 remaining installments unpaid real estate taxes which are, on and after 14 July first, nineteen hundred eighty-two due and payable on an other than 15 quarterly basis shall be deemed to be payable on a quarterly basis; and 16 (ii) as to which an agreement has been duly made, executed and filed 17 with said commissioner, for the payment of the delinquent taxes, assess- 18 ments or other legal charges incurred after the ownership of said parcel 19 by said article eleven company on the same terms as are provided in 20 paragraph one of this subdivision. 21 (3) The commissioner of finance may also exclude or thereafter remove 22 from such list any parcels which are owner-occupied residential build- 23 ings of not more than five residential units as to which an agreement 24 has been duly made, executed and filed with said commissioner for the 25 payment of the delinquent taxes, assessments, or other legal charges and 26 the interest and penalties thereon, in installments. The first install- 27 ment thereof shall be paid upon the filing of the installment agreement 28 with the commissioner and shall be in an amount not less than ten 29 percent of such delinquent taxes, assessment or other legal charges and 30 the interest and penalty thereon. The remaining installments, which 31 shall be three times the number of unpaid quarters of real estate taxes 32 or the equivalent thereof but which shall in no event exceed forty-eight 33 in number, shall be payable quarterly on the first days of July, Octo- 34 ber, January and April. For purposes of calculating the number of such 35 remaining installments unpaid real estate taxes which are, on and after 36 July first, nineteen hundred eighty-two, due and payable on an other 37 than quarterly basis shall be deemed to be payable on a quarterly basis. 38 (4) Notwithstanding paragraph one, two or three of this subdivision, 39 with respect to installment agreements duly made, executed and filed on 40 or after the date on which this paragraph takes effect, the commissioner 41 of finance may also exclude or thereafter remove from such list any 42 parcel that is (i) (A) a residential building containing not more than 43 five residential units, (B) a residential condominium unit, (C) a resi- 44 dential building held in a cooperative form of ownership, or (D) owned 45 by a company organized pursuant to article eleven of the state private 46 housing finance law with the consent and approval of the department of 47 housing preservation and development, and (ii) as to which an agreement 48 has been duly made, executed and filed with such commissioner for the 49 payment of the delinquent taxes, assessments or other legal charges, and 50 the interest and penalties thereon, in installments. The first install- 51 ment thereof shall be paid upon the filing of the installment agreement 52 with the commissioner and shall be in an amount equal to not less than 53 ten percent of the total amount of such delinquent taxes, assessments or 54 other legal charges and the interest and penalties thereon. The remain- 55 ing installments, which shall be three times the number of unpaid quar- 56 ters of real estate taxes or the equivalent thereof, but which shall in

S. 8578 311 1 no event exceed thirty-two in number, shall be payable quarterly on the 2 first days of July, October, January and April. For the purposes of 3 calculating the number of such remaining installments, unpaid real 4 estate taxes that are due and payable on other than a quarterly basis 5 shall be deemed to be payable on a quarterly basis. 6 (5) Notwithstanding paragraph one, two or three of this subdivision, 7 with respect to installment agreements duly made, executed and filed on 8 or after the date on which this paragraph takes effect, the commissioner 9 of finance may also exclude or thereafter remove from such list any 10 parcel of class one or class two real property, other than a parcel 11 described in paragraph four of this subdivision, as to which an agree- 12 ment has been duly made, executed and filed with such commissioner for 13 the payment of the delinquent taxes, assessments or other legal charges, 14 and the interest and penalties thereon, in installments. The first 15 installment thereof shall be paid upon the filing of the installment 16 agreement with the commissioner and shall be in an amount equal to not 17 less than fifteen percent of the total amount of such delinquent taxes, 18 assessments or other legal charges and the interest and penalties there- 19 on. The remaining installments, which shall be twice the number of 20 unpaid quarters of real estate taxes or the equivalent thereof, but 21 which shall in no event exceed thirty-two in number, shall be payable 22 quarterly on the first days of July, October, January and April. For the 23 purposes of calculating the number of such remaining installments, 24 unpaid real estate taxes that are due and payable on other than a quar- 25 terly basis shall be deemed to be payable on a quarterly basis. 26 (6) Notwithstanding paragraph one, two or three of this subdivision, 27 with respect to installment agreements duly made, executed and filed on 28 or after the date on which this paragraph takes effect, the commissioner 29 of finance may also exclude or thereafter remove from such list any 30 parcel of class three or class four real property as to which an agree- 31 ment has been duly made, executed and filed with such commissioner for 32 the payment of the delinquent taxes, assessments or other legal charges, 33 and the interest and penalties thereon, in installments. The first 34 installment thereof shall be paid upon the filing of the installment 35 agreement with the commissioner and shall be in an amount equal to not 36 less than fifteen percent of the total amount of such delinquent taxes, 37 assessments or other legal charges and the interest and penalties there- 38 on. The remaining installments, which shall be twice the number of 39 unpaid quarters of real estate taxes or the equivalent thereof, but 40 which shall in no event exceed twenty in number, shall be payable quar- 41 terly on the first days of July, October, January and April. For the 42 purposes of calculating the number of such remaining installments, 43 unpaid real estate taxes that are due and payable on other than a quar- 44 terly basis shall be deemed to be payable on a quarterly basis. 45 (7) A parcel for which any such installment agreement or agreements 46 have been filed with the commissioner shall be excluded or removed from 47 the list of delinquent taxes before the commencement of the in rem 48 action based upon such list only if the amounts paid pursuant to such 49 agreement exceed the amount required to pay all taxes and charges which 50 render said parcel eligible for inclusion in the in rem action and there 51 has been no default in such agreement prior to the commencement of said 52 action as to either quarterly installments or current taxes, assessments 53 or other legal charges. 54 (8) As a condition to entering into any agreement under this section 55 or section 11-409 of this chapter, the commissioner shall have received 56 from the applicant, an affidavit stating that each tenant located on the

S. 8578 312 1 parcel has been notified by certified mail that an application for an 2 installment agreement will be made and that a copy of a standard agree- 3 ment form has been included with such notification. Any false statement 4 in such affidavit shall not be grounds to cancel the agreement or affect 5 its validity in any way. 6 d. Two duplicate originals thereof, verified by the commissioner of 7 finance or a subordinate designated by the commissioner, shall be filed 8 in the office of the clerk of the county in which the parcels listed 9 therein are situated. Such filing shall constitute and have the same 10 force and effect as the filing and recording in such office of an indi- 11 vidual and separate notice of pendency of action and as the filing in 12 the supreme court in such county of an individual and separate complaint 13 by the city as to each parcel described in said list, to enforce the 14 payment of the delinquent taxes, assessments or other lawful charges 15 which have accumulated and become liens against such parcels. 16 e. Each county clerk with whom such a list of delinquent taxes is 17 filed shall, on the date of said filing, place and thereafter maintain 18 one duplicate original copy thereof, as separately and permanently bound 19 by the commissioner of finance, adjacent to and together with the block 20 index of notices of pendency of action and each county clerk shall, on 21 the date of said filing or as soon thereafter as with due diligence is 22 practicable, docket the parcels contained in the list of delinquent 23 taxes in said block index of notices of pendency of action, which shall 24 constitute due filing, recording and indexing of the separate notices 25 constituting said list of delinquent taxes in lieu of any other require- 26 ment under rule sixty-five hundred eleven of the civil practice law and 27 rules or otherwise. 28 f. The commissioner of finance shall file a copy of each list of 29 delinquent taxes, certified as such copy by him or her or a subordinate 30 designated by the commissioner, in the office of the corporation coun- 31 sel. 32 g. The validity of any proceeding hereunder shall not be affected by 33 any omission or error of the commissioner of finance in including or 34 excluding parcels from any such list or in the designation of a street 35 or street number or by any other similar omission or error. 36 § 11-406 Public notice of foreclosure. a. Upon the filing of a list of 37 delinquent taxes in the office of the county clerk, the commissioner of 38 finance forthwith shall cause a notice of foreclosure to be published at 39 least once a week for six successive weeks in the City Record and, 40 subject to section ninety-one of the judiciary law, in two newspapers, 41 one of which may be a law journal, to be designated by the commissioner 42 of finance, which are published in and are circulated throughout the 43 county in which the affected property is located. If there are no news- 44 papers published in such county, the commissioner of finance may desig- 45 nate newspapers published in the city of Staten Island which are circu- 46 lated throughout the affected county. 47 b. Such notice shall clearly indicate that it is a notice of foreclo- 48 sure of tax liens; the section of a tax map or portion of a section of a 49 tax map in which the properties subject to foreclosure are located and 50 where the area affected by the action includes less than all parcels in 51 a section of a tax map or portion of a section of a tax map, the partic- 52 ular class or classes contained therein, and by a general description 53 which need not contain measurements and direction; where and when the 54 list of delinquent taxes was filed; the general nature of the informa- 55 tion contained in the list; that the filing of the list constitutes 56 commencement of a foreclosure action by the city in the supreme court

S. 8578 313 1 for the particular county and a notice of pendency of action against 2 each parcel listed; that such action is against the property only and no 3 personal judgment will be entered; that the list will be available for 4 inspection at the city collector's central office and at the borough 5 office of the city collector in which said property is located until a 6 specified date at least ten weeks after the date of first publication; 7 that until such date a parcel may be redeemed by paying all taxes and 8 charges contained in said list of delinquent taxes together with inter- 9 est and penalties thereon; that during said period of redemption and for 10 an additional period of twenty days after said last date for redemption 11 any person having any interest in or lien upon a parcel on the list may 12 file with the appropriate county clerk and serve upon the corporation 13 counsel a verified answer setting forth in detail the full name of said 14 answering party, the nature and amount of his or her interest or lien 15 and any legal defense against foreclosure; and that in the absence of 16 redemption or answer a judgment of foreclosure may be taken by default. 17 c. On or before the date of the first publication of such notice, the 18 commissioner of finance shall cause a copy of the notice to be mailed to 19 all owners, mortgagees, lienors or encumbrancers, who may be entitled to 20 receive such notice by virtue of any owner's registration or in rem card 21 filed in the office of the city collector pursuant to section 11-416 or 22 11-417 of this chapter. If such owner's registration or in rem cards 23 have not been filed in the office of the city collector then said notice 24 shall be mailed to the name and address, if any, appearing in the latest 25 annual record of assessed valuations. The commissioner of finance shall 26 cause to be inserted with such notice a statement substantially in the 27 following form: 28 "To the party to whom the enclosed notice is addressed: You are the 29 presumptive owner or lienor of one or more of the parcels mentioned and 30 described in the list referred to in the attached notice. Unless the 31 taxes and assessments and all other legal charges are paid, or an answer 32 is interposed; or an arrangement is made for payment of such taxes and 33 assessments and all other legal charges in installments, as provided by 34 statute, the ownership of said property will in due course pass to the 35 city of Staten Island as provided by the administrative code of the city 36 of Staten Island." 37 The failure of the commissioner of finance to mail such notice shall 38 not affect the validity of any proceeding brought pursuant to this chap- 39 ter as to any parcel other than the parcel with respect to which notice 40 was not mailed. 41 d. The commissioner of finance shall cause a copy of such notice to be 42 posted in the office of the commissioner of finance, in the county 43 courthouse of the county in which the property subject to such tax lien 44 is situated and at three other conspicuous places in the city in which 45 the affected properties are located. 46 § 11-407 Redemption. a. After the filing of a list of delinquent taxes 47 and until a date at least ten weeks after the first publication of the 48 public notice of foreclosure, as determined by the commissioner of 49 finance and specified in the said notice, a person claiming to have an 50 interest in any parcel in said list may redeem it by paying all taxes 51 and charges contained in said list of delinquent taxes together with 52 interest and penalties thereon. 53 b. Upon such redemption the commissioner of finance shall deliver to 54 the corporation counsel a certificate of redemption. The corporation 55 counsel shall file such certificate with the clerk of the county in 56 which said list was filed. The filing of such certificate shall consti-

S. 8578 314 1 tute and be deemed a discontinuance of the in rem action as to the 2 affected parcel, and the county clerk shall thereupon note such redemp- 3 tion and discontinuance in the copy of the list of delinquent taxes 4 maintained by him or her adjacent to the county clerk's block index of 5 notices of pendency of action and shall cancel and discharge any 6 notations of the filing of said list of delinquent taxes as to said 7 parcel that may appear in any other books, records, indices and dockets 8 maintained in said clerk's office. The commissioner of finance shall 9 also deliver a duplicate original certificate of redemption to the 10 person who has redeemed. 11 c. When the time to redeem in an in rem tax foreclosure action has 12 expired, any person claiming to have an interest in a parcel included in 13 said action shall have the right to make a late redemption payment to 14 the commissioner of finance. Such late redemption payment shall consist 15 of all taxes and charges owing on said parcel, the lawful interest ther- 16 eon to the date of payment and a penalty of five percent of said payment 17 of taxes, charges and interest, which penalty may not exceed one thou- 18 sand dollars as to each parcel on which a late redemption payment is 19 being made. Such late redemption payment shall be made in cash or by 20 certified or bank check and shall be accepted by the commissioner of 21 finance at any time after the last day to redeem up to the date on which 22 the commissioner is advised by the corporation counsel that the prepara- 23 tion of the judgment of foreclosure in the in rem action has been 24 commenced. Upon receipt of such late redemption payment, the commission- 25 er of finance shall issue a certificate of withdrawal pursuant to the 26 provisions of section 11-413 of this chapter. 27 § 11-408 Filing of affidavits. All affidavits of filing, publication, 28 posting, mailing or other acts required by this chapter shall be made by 29 the person or persons performing such acts and shall be filed in the 30 office of the county clerk of the county in which the property subject 31 to such tax lien is situated and shall together with all other documents 32 required by this chapter to be filed in the office of such county clerk, 33 constitute and become a part of the judgment roll in such foreclosure 34 action. 35 § 11-409 Severance and trial of issues where answer is interposed; 36 installment agreements authorized after action commenced. a. If a duly 37 verified answer is served upon the corporation counsel not later than 38 twenty days after the last date for redemption, the answering defendant 39 shall have the right to a severance of the action, as to any parcel in 40 which the defendant has pleaded an interest, upon written demand there- 41 for filed with or made a part of his or her answer. 42 b. When such answer is interposed, the court shall summarily hear and 43 determine the issues raised by the complaint and answer in the same 44 manner as it hears and determines other actions, except as herein other- 45 wise provided. Proof that the taxes which made said property subject to 46 foreclosure hereunder together with interest and penalties thereon, were 47 paid before filing of the list of delinquent taxes or that the property 48 was not subject to tax shall constitute a complete defense. 49 c. No counterclaim may be asserted in an answer interposed in an 50 action brought pursuant to this chapter. Where a counterclaim is 51 asserted in an in rem answer the city may disregard that portion of the 52 answer and shall suffer no legal penalty or impediment in the prose- 53 cution of its in rem action for its failure to reply or respond thereto. 54 Where an answer contains only a counterclaim and no other defenses the 55 city may proceed to judgment of foreclosure against the property 56 affected without the need for moving against the answer.

S. 8578 315 1 d. When a verified answer alleges a substantial equity over the city's 2 lien for taxes, the defendant may demand additional time in which to pay 3 the taxes and interest or to have the property sold with all taxes and 4 interest to be paid out of the proceeds of such sale. Upon such demand a 5 defendant shall have the right to an extension of time for such purpose 6 not in excess of six months from the last day to interpose an answer. 7 Where a mortgagee or lienor who has interposed such answer commences a 8 proceeding to foreclose his or her mortgage or lien and it appears that 9 with due diligence such proceeding cannot be concluded in time to allow 10 the payment of taxes within the aforesaid six month period, the court 11 may, on application before the end of said six month period, authorize 12 an additional period during which such proceeding may be concluded and 13 the taxes, together with interest and penalties, paid. 14 e. Where an answer of the type described in subdivision d of this 15 section is interposed and taxes are paid within the period set forth in 16 such subdivision, the commissioner of finance shall issue a certificate 17 of withdrawal as to the property on which such payment has been made 18 pursuant to the provisions of section 11-413 of this chapter. When taxes 19 are not paid within the period set forth in subdivision d of this 20 section, it shall be deemed that there was no equity over the city's tax 21 liens and the answer shall be deemed to be without merit. The city in 22 that event may proceed to judgment of foreclosure against such property 23 without moving against the answer. 24 f. All answers interposed in an action hereunder and all affidavits 25 and other papers pertaining to any litigation involving such answers or 26 to any proceeding brought pursuant to this chapter involving less than 27 an entire action shall bear a caption containing the in rem action 28 number of the city's tax foreclosure proceeding, the section of a tax 29 map or portion of a section of a tax map affected, and if the action 30 covers less than all parcels in the section of a tax map or portion of a 31 section of a tax map, the particular class or classes, and the serial, 32 section, block and lot numbers of the parcel or parcels in issue. 33 g. The corporation counsel, when submitting an in rem judgment roll 34 pursuant to the provisions of this chapter, may request a severance as 35 to any parcel on which an in rem answer or litigation is pending, or as 36 to which, before the preparation of said in rem judgment roll is 37 commenced, an agreement was duly made, executed and filed with the 38 commissioner of finance for the payment of the delinquent taxes, assess- 39 ments or other legal charges and interest and penalties in installments 40 as provided in subdivision c of section 11-405 of this chapter and there 41 has been no default in such agreement as to either quarterly install- 42 ments or current taxes, assessments or other legal charges. Where such 43 an agreement is entered into subsequent to the last date for redemption 44 specified in subdivision a of section 11-407 of this chapter, there 45 shall be paid to the commissioner of finance at the time the aforesaid 46 agreement is executed an amount equal to the penalty which would have 47 been payable under subdivision c of section 11-407 of this chapter had 48 the person executing the agreement made a late redemption payment. Such 49 amount shall be in addition to any installment payments required to be 50 made under the agreement and shall not be credited against any such 51 installment payments. Where a default occurs in such agreement as to 52 either quarterly installments or current taxes, assessments or other 53 legal charges, all payments made under the agreement shall be forfeited 54 and the city shall be entitled to acquire the parcel as to which the 55 default occurred. Where such default occurs before the submission of the 56 judgment roll, the parcels as to which such default occurs shall be

S. 8578 316 1 included in said judgment roll among the parcels to be acquired by the 2 city. Where such default has occurred as to a parcel severed pursuant to 3 this subdivision, the corporation counsel shall cause to be entered a 4 supplemental judgment of foreclosure as to such parcel immediately on 5 notification by the commissioner of finance of such default. Where such 6 installment agreement is paid in full the commissioner of finance shall 7 discontinue the in rem action from which said parcel was severed by 8 issuing a certificate of withdrawal as to said parcel pursuant to the 9 provisions of section 11-413 of this chapter. 10 h. A party who has interposed an answer as to any parcel included in 11 an in rem tax foreclosure action, or any other party interested in such 12 parcel, shall have the right, at any time prior to the final disposition 13 of a motion to strike said answer, to pay all taxes, assessments and 14 other legal charges and interest owing on said parcel. An answering 15 party who makes such payment shall not be required to pay any penalty. 16 Where such payment is made by other than an answering party after the 17 expiration of the period of redemption, there shall be paid to the 18 commissioner of finance an additional amount equal to the penalty paya- 19 ble under subdivision c of section 11-407 of this chapter. Where all 20 delinquent taxes, assessments and other legal charges together with 21 lawful interest thereon and penalties, where required, are paid, the 22 commissioner of finance shall issue a certificate of withdrawal as to 23 said parcel pursuant to the provisions of section 11-413 of this chap- 24 ter. Said parties may also pay such taxes, assessments and other legal 25 charges and interest by an installment agreement. Where such agreement 26 is requested before the preparation of the aforesaid in rem judgment 27 roll is commenced, the terms of said agreement shall be consistent with 28 the provisions of subdivision g or i of this section, whichever is 29 applicable. Where such agreement is requested after judgment of foreclo- 30 sure has been entered in the in rem action in which the aforesaid answer 31 was interposed, said agreement shall require a first installment of 32 fifty percent of all taxes, assessments and other legal charges and 33 interest owing on said parcel, a penalty of five percent of all such 34 taxes, assessments and other legal charges and interest, which penalty 35 may not exceed one thousand dollars, and the payment of the balance of 36 such taxes, assessments and other legal charges and interest in four 37 equal quarterly installments together with all current taxes, assess- 38 ments and other legal charges that accrue during such period. The 39 request of an answering party for an installment agreement shall consti- 40 tute a withdrawal of such party's answer. An installment agreement 41 requested by an interested party other than the answering party shall 42 require the consent of said answering party which shall also constitute 43 a withdrawal of such party's answer. The severance provided for in this 44 section shall be continued during the term of all installment agreements 45 entered into pursuant to the provisions of this subdivision. Where a 46 default has occurred as to a parcel severed pursuant to this subdivi- 47 sion, the corporation counsel shall cause to be entered a supplemental 48 judgment of foreclosure as to such parcel immediately on notification by 49 the commissioner of finance of such default. Where such installment 50 agreement is paid in full, the commissioner of finance shall discontinue 51 the in rem action from which said parcel was severed by issuing a 52 certificate of withdrawal as to said parcel pursuant to the provisions 53 of section 11-413 of this chapter. 54 i. (1) Notwithstanding subdivision g of this section, this subdivision 55 shall apply with respect to installment agreements made, executed and 56 filed with the commissioner of finance on or after the date on which

S. 8578 317 1 this subdivision takes effect. An installment agreement pursuant to this 2 subdivision may be made, executed and filed with such commissioner 3 during the period beginning on the date on which an action is commenced 4 as provided in subdivision d of section 11-405 of this chapter with 5 respect to the parcel that is the subject of such agreement and ending 6 on the date on which such commissioner is advised by the corporation 7 counsel that the preparation of the judgment of foreclosure in such in 8 rem action has been commenced. Notwithstanding anything to the contrary, 9 and except to the extent provided in paragraph two of this subdivision, 10 the provisions of paragraphs one through six of subdivision c of section 11 11-405 of this chapter shall not apply to any installment agreement 12 requested on or after the date on which this subdivision takes effect 13 and on or after the date on which an action is commenced as provided in 14 subdivision d of such section 11-405 with respect to the parcel that is 15 the subject of such requested agreement. 16 (2) An agreement entered into pursuant to this subdivision shall 17 provide for the payment in installments of the delinquent taxes, assess- 18 ments and other legal charges, and the interest and penalties thereon, 19 due and owing as of the date on which such agreement is requested. 20 Unless an eligible owner or other interested person requests an agree- 21 ment pursuant to the provisions of paragraph three of this subdivision, 22 the terms of such agreement with respect to a parcel shall be the same 23 as the terms that would be applicable to such parcel under paragraph 24 four, five or six, as the case may be, of subdivision c of section 25 11-405 of this chapter, except that, for purposes of the agreement 26 pursuant to this paragraph, the amount of the first installment shall be 27 equal to: (i) fifteen percent of the total amount due in the case of a 28 parcel described in paragraph four of subdivision c of section 11-405 of 29 this chapter; (ii) twenty percent of the total amount due in the case of 30 a parcel described in paragraph five of subdivision c of section 11-405 31 of this chapter; and (iii) twenty-five percent of the total amount due 32 in the case of a parcel described in paragraph six of subdivision c of 33 section 11-405 of this chapter. 34 (3) Instead of an agreement pursuant to paragraph two of this subdivi- 35 sion, an eligible owner or other interested party may request an agree- 36 ment pursuant to the following provisions: 37 (i) With respect to a parcel that is owned by a company organized 38 pursuant to article eleven of the state private housing finance law with 39 the consent and approval of the department of housing preservation and 40 development, such agreement shall provide for the payment in install- 41 ments of the delinquent taxes, assessments and other legal charges, and 42 the interest and penalties thereon, due and owing as of the date on 43 which such agreement is requested. The first installment thereof shall 44 be paid upon the filing of the installment agreement with the commis- 45 sioner of finance and shall be in an amount at least equal to, at the 46 applicant's election, either thirty-five percent or fifty percent of the 47 total amount of such delinquent taxes, assessments or other legal charg- 48 es and the interest and penalties thereon. The remaining installments, 49 which shall be three times the number of unpaid quarters of real estate 50 taxes or the equivalent thereof, but which shall in no event exceed 51 thirty-two in number, shall be payable quarterly on the first days of 52 July, October, January and April, together with interest at the rate or 53 rates determined as provided in subparagraph (iv) of this paragraph. For 54 the purposes of calculating the number of such remaining installments, 55 unpaid real estate taxes that are due and payable on other than a quar- 56 terly basis shall be deemed to be payable on a quarterly basis.

S. 8578 318 1 (ii) With respect to a parcel, other than a parcel described in 2 subparagraph (i) of this paragraph, that is a residential building 3 containing not more than five residential units, a residential condomin- 4 ium unit or a residential building held in a cooperative form of owner- 5 ship, such agreement shall provide for the payment in installments of 6 the delinquent taxes, assessments and other legal charges, and the 7 interest and penalties thereon, due and owing as of the date on which 8 such agreement is requested. The first installment thereof shall be paid 9 upon the filing of the installment agreement with the commissioner of 10 finance and shall be in an amount at least equal to, at the applicant's 11 election, either twenty-five percent or fifty percent of the total 12 amount of such delinquent taxes, assessments or other legal charges and 13 the interest and penalties thereon. The remaining installments, which 14 shall be three times the number of unpaid quarters of real estate taxes 15 or the equivalent thereof, but which shall in no event exceed twenty in 16 number, shall be payable quarterly on the first days of July, October, 17 January and April together with interest at the rate or rates determined 18 as provided in subparagraph (iv) of this paragraph. For the purposes of 19 calculating the number of such remaining installments, unpaid real 20 estate taxes that are due and payable on other than a quarterly basis 21 shall be deemed to be payable on a quarterly basis. 22 (iii) With respect to any parcel of class one or class two real prop- 23 erty, other than a parcel described in subparagraph (i) or (ii) of this 24 paragraph, such agreement shall provide for the payment in installments 25 of the delinquent taxes, assessments and other legal charges, and the 26 interest and penalties thereon, due and owing as of the date on which 27 such agreement is requested. The first installment thereof shall be paid 28 upon the filing of the installment agreement with the commissioner of 29 finance and shall be in an amount at least equal to, at the applicant's 30 election, either thirty-five percent or fifty percent of the total 31 amount of such delinquent taxes, assessments or other legal charges and 32 the interest and penalties thereon. The remaining installments, which 33 shall be twice the number of unpaid quarters of real estate taxes or the 34 equivalent thereof, but which shall in no event exceed twenty in number, 35 shall be payable quarterly on the first days of July, October, January 36 and April, together with interest at the rate or rates determined as 37 provided in subparagraph (iv) of this paragraph. For the purposes of 38 calculating the number of such remaining installments, unpaid real 39 estate taxes that are due and payable on other than a quarterly basis 40 shall be deemed to be payable on a quarterly basis. 41 (iv) (A) Notwithstanding any higher rate of interest prescribed pursu- 42 ant to applicable law, and unless a lower rate of interest is applicable 43 to a delinquent amount owing on a parcel that is the subject of an 44 agreement pursuant to this paragraph, the interest payable together with 45 the remaining installments due under such agreement shall be: 46 (I) with respect to an agreement for which a twenty-five percent or 47 thirty-five percent down payment was made, calculated at a rate equal to 48 the sum of (a) the rate prescribed for the applicable period pursuant to 49 paragraph (i) of subdivision e of section 11-224.1 of this title and (b) 50 one-half of the difference between such rate and the rate prescribed for 51 such period pursuant to paragraph (ii) of subdivision e of section 52 11-224.1 of this title; or 53 (II) with respect to an agreement for which a fifty percent down 54 payment was made, calculated at a rate equal to the rate prescribed for 55 the applicable period pursuant to paragraph (i) of subdivision e of 56 section 11-224.1 of this title.

S. 8578 319 1 (B) If a default occurs in any agreement executed pursuant to this 2 paragraph as to either quarterly installments or current taxes, assess- 3 ments or other legal charges, the rates of interest determined under 4 this subparagraph shall thereupon cease to be applicable and the commis- 5 sioner of finance shall thereafter charge, collect and receive interest 6 in the manner and at the rates otherwise prescribed pursuant to law. 7 (4) The corporation counsel, when submitting an in rem judgment roll 8 pursuant to the provisions of this chapter, may request a severance as 9 to any parcel as to which, before the preparation of said in rem judg- 10 ment roll is commenced, an agreement was duly made, executed and filed 11 with the commissioner of finance for the payment of all delinquent 12 taxes, assessments and other legal charges and interest and penalties in 13 installments as provided in this subdivision, and there has been no 14 default in such agreement as to either quarterly installments or current 15 taxes, assessments or other legal charges. Where such an agreement is 16 entered into subsequent to the last date for redemption specified in 17 subdivision a of section 11-407 of this chapter, there shall be paid to 18 the commissioner of finance at the time such agreements are executed an 19 amount equal to the penalty that would have been payable under subdivi- 20 sion c of section 11-407 of this chapter had the person executing the 21 agreement made a late redemption payment. Such amount shall be in addi- 22 tion to any installment payments required to be made under the agreement 23 and shall not be credited against any such installment payments. Where a 24 default occurs in such agreement as to either quarterly installments or 25 current taxes, assessments or other legal charges, all payments made 26 under the agreement shall be forfeited and the city shall be entitled to 27 obtain a judgment hereunder as to the parcel as to which the default 28 occurred. Where such default occurred before the submission of the judg- 29 ment roll, the parcels as to which such default occurs shall be included 30 in said judgment roll amount the parcels to be acquired by the city or 31 by a third party. Where such default has occurred as to a parcel severed 32 pursuant to this subdivision, the corporation counsel shall cause to be 33 entered a supplemental judgment of foreclosure as to such parcel imme- 34 diately on notification by the commissioner of finance of such default. 35 Where such installment agreement is paid in full, the commissioner of 36 finance shall discontinue the in rem action from which such parcel was 37 severed by issuing a certificate of withdrawal as to such parcel pursu- 38 ant to the provisions of section 11-413 of this chapter. 39 § 11-410 Preference over other actions. a. Any action brought pursuant 40 to this chapter shall be given preference over all other causes and 41 actions. 42 b. Actions brought pursuant to this chapter shall take precedence over 43 any proceeding brought to foreclose a mortgage or other lien involving 44 the same property. A parcel included in a list of delinquent taxes 45 which is sold in a mortgage foreclosure sale held after said list is 46 filed may not be sold subject to taxes even if judgment has not yet been 47 entered in the tax foreclosure action. All unpaid taxes and interest and 48 penalties thereon must be paid, in full or by installment agreement 49 pursuant to the provisions of this chapter, out of the proceeds of such 50 sale regardless of whether the mortgage foreclosure lis pendens was 51 filed before or after the filing of the tax foreclosure action, regard- 52 less of whether any party to the mortgage foreclosure proceeding has 53 interposed an answer in the tax foreclosure action and regardless of any 54 terms to the contrary in the judgment in the mortgage foreclosure 55 proceeding.

S. 8578 320 1 § 11-411 Presumption of validity. It shall not be necessary for the 2 city to plead or prove the various steps, procedures and notices for the 3 assessment and levy of the taxes, assessments or other lawful charges 4 against the parcels set forth in the list of delinquent taxes and all 5 such taxes, assessments or other lawful charges and the lien thereof 6 shall be presumed to be valid. A defendant alleging any jurisdictional 7 defect or invalidity in such taxes, assessments or other lawful charges 8 or in the foreclosure thereof must particularly specify in his or her 9 answer such jurisdictional defect or invalidity and must affirmatively 10 establish such defense. A judgment of foreclosure granted in any 11 proceeding brought pursuant to this chapter, which contains recitals 12 that any acts were done or proceedings had which were necessary to give 13 the court jurisdiction or power to grant such judgment of foreclosure, 14 shall be presumptive evidence that such acts were duly performed or 15 proceedings duly had, if such judgment of foreclosure shall have been 16 duly entered or filed in the office of the clerk of the county in which 17 the proceeding was pending and wherein such judgment was granted. The 18 provisions of this chapter shall apply to and be valid and effective 19 with respect to all defendants even though one or more of them be 20 infants, incompetents, absentees or non-residents of the state of New 21 York. 22 § 11-412 Final judgment. a. The court shall determine upon proof and 23 shall make finding upon such proof whether there has been due compliance 24 by the city with the provisions of this chapter. 25 b. The court shall make a final judgment awarding to the city the 26 possession of any parcel described in the list of delinquent taxes not 27 redeemed or withdrawn as provided in this chapter and as to which no 28 answer is interposed as provided herein. In addition thereto, such judg- 29 ment shall contain a direction to the commissioner of finance to 30 prepare, execute and cause to be recorded a deed conveying to the city 31 full and complete title to such lands. Upon the execution of such deed, 32 the city shall be seized of an estate in fee simple absolute in such 33 land and all persons, including the state of New York, infants, incompe- 34 tents, absentees and non-residents who may have had any right, title, 35 interest, claim, lien or equity of redemption in or upon such lands 36 shall be barred and forever foreclosed of all such right, title, inter- 37 est, claim, lien or equity of redemption, except as otherwise provided 38 in section 11-424 of this chapter. The appointment and tenure of receiv- 39 ers, trustees or any other persons, including administrators under arti- 40 cle seven-A of the real property actions and proceedings law, appointed 41 by an order of a court to manage real property, shall terminate when 42 title to such property vests in the city pursuant to the provisions of 43 this chapter. After such termination, said receivers, trustees or admin- 44 istrators shall be accountable to the courts that appointed them for the 45 faithful performance of their fiduciary obligations during the term of 46 their appointment and to the city for any rents and income received by 47 them for any period subsequent to the date of the vesting of title in 48 the city. 49 If the city serves a tenant in possession of a dwelling unit with 50 notice of termination of tenancy on grounds other than non-payment of 51 rent, the acceptance of rent for the first forty-five days after termi- 52 nation of tenancy by anyone other than an employee of the department 53 designated by the department to receive such rent shall not be deemed or 54 construed as a waiver of the city's right to initiate and prosecute a 55 proceeding to terminate the tenancy for good cause.

S. 8578 321 1 c. Every deed given pursuant to the provisions of this section shall 2 be presumptive evidence that the action and all proceedings therein and 3 all proceedings prior thereto from and including the assessment of the 4 lands affected and all notices required by law were regular and in 5 accordance with all provisions of law relating thereto. After two years 6 from the date of the recording of such deed, the presumption shall be 7 conclusive, unless at the time that this subdivision takes effect the 8 two year period since the recording of the deed has expired or less than 9 six months of such period of two years remains unexpired, in which case 10 the presumption shall become conclusive six months after this subdivi- 11 sion takes effect. No action to set aside such deed may be maintained 12 unless the action is commenced and a notice of pendency of the action is 13 filed in the office of the proper county clerk prior to the time that 14 the presumption becomes conclusive as aforesaid. 15 § 11-412.1 Special procedures relating to final judgment and release 16 of class one and class two real property. Notwithstanding any other 17 provision of law to the contrary: 18 a. The court shall determine upon proof and shall make a finding upon 19 such proof whether there has been due compliance by the city with the 20 applicable provisions of this chapter. 21 b. (1) The court shall make a final judgment authorizing the award of 22 possession of any parcel of class one or class two real property 23 described in the list of delinquent taxes not redeemed or withdrawn as 24 provided in this chapter and as to which no answer is interposed as 25 provided herein, and authorizing the commissioner of finance to prepare, 26 execute and cause to be recorded a deed conveying either to the city or 27 to a third party deemed qualified and designated by the commissioner of 28 housing preservation and development full and complete title to such 29 lands. Any such conveyance to a third party shall be for an existing 30 use. 31 (2) Such third party shall be deemed qualified and shall be designated 32 pursuant to such criteria as are established in rules promulgated by the 33 commissioner of housing preservation and development, provided, however, 34 that such criteria shall include but not be limited to: residential 35 management experience; financial ability; rehabilitation experience; 36 ability to work with government and community organizations; neighbor- 37 hood ties; and that the commissioner shall consider whether the third 38 party is a responsible legal tenant, not-for-profit organization or 39 neighborhood-based-for-profit individual or organization. The commis- 40 sioner shall not deem qualified any third party who has been finally 41 adjudicated by a court of competent jurisdiction, within seven years of 42 the date on which such third party would otherwise be deemed qualified, 43 to have violated any section of article one hundred fifty, one hundred 44 seventy-five, one hundred seventy-six, one hundred eighty, one hundred 45 eighty-five or two hundred of the penal law or any similar laws of 46 another jurisdiction, or who has been suspended or debarred from 47 contracting with the city or any agency of the city pursuant to section 48 335 of the charter during the period of such suspension or debarment. 49 The rules promulgated by the commissioner pursuant to this paragraph may 50 establish other bases for disqualification of a third party. 51 c. Following the expiration of the four-month period prescribed in 52 subdivision d of this section, but not more than eight months after the 53 date on which, pursuant to subdivision b of this section, the final 54 judgment authorizing the award of possession of a parcel of class one or 55 class two real property was entered, the commissioner of finance may 56 execute a deed, pursuant to subdivision b of this section, with respect

S. 8578 322 1 to such parcel. The owner of said parcel shall continue to have all of 2 the rights, liabilities, responsibilities, duties and obligations of an 3 owner of such parcel, including, but not limited to, maintaining such 4 parcel in compliance with the housing maintenance, building and fire 5 codes, and all other applicable laws, unless and until the commissioner 6 of finance has prepared and executed a deed conveying to the city or to 7 a third party full and complete title to such parcel. Upon the execution 8 of such deed, the city or the third party shall be seized of an estate 9 in fee simple absolute in such land and all persons, including the state 10 of New York, infants, incompetents, absentees and non-residents who may 11 have had any right, title, interest, claim, lien or equity of redemption 12 in or upon such lands shall be barred and forever foreclosed of all such 13 right, title, interest, claim, lien or equity of redemption, except as 14 otherwise provided in subdivisions e and f of this section. The appoint- 15 ment and tenure of receivers, trustees or any other persons, including 16 administrators under article seven-A of the real property actions and 17 proceedings law, appointed by an order of a court to manage real proper- 18 ty, shall terminate when title to such property vests in the city or a 19 third party pursuant to the provisions of this chapter. After such 20 termination, said receivers, trustees or administrators shall be 21 accountable to the courts that appointed them for the faithful perform- 22 ance of their fiduciary obligations during the term of their appointment 23 and to the city or such third party for any rents and income received by 24 them for any period subsequent to the date of the vesting of title in 25 the city or such third party. 26 If the city serves a tenant in possession of a dwelling unit with 27 notice of termination of tenancy on grounds other than nonpayment of 28 rent, the acceptance of rent for the first forty-five days after termi- 29 nation of tenancy by anyone other than an employee of the department 30 designated by the department to receive such rent shall not be deemed or 31 construed as a waiver of the city's right to initiate and prosecute a 32 proceeding to terminate the tenancy for good cause. 33 d. Within four months after the date on which, pursuant to subdivision 34 b of this section, the final judgment authorizing the award of 35 possession of a parcel of class one or class two real property was 36 entered, any person claiming to have an interest in such parcel shall 37 have the right to make a payment to the commissioner of finance consist- 38 ing of all taxes, assessments and other legal charges owing on said 39 parcel, the lawful interest thereon to the date of payment and a penalty 40 of five percent of said payment of taxes, assessments and other legal 41 charges and interest, which penalty may not exceed one thousand dollars. 42 Such payment shall be made in cash or by certified or bank check. Within 43 such four-month period, such interested person may also request an 44 installment agreement from the commissioner of finance. Such agreement 45 shall require, in addition to full payment of the penalty specified in 46 this subdivision at the time such agreement is entered into, the payment 47 at such time of a first installment equal to fifty percent of all taxes, 48 assessments and other legal charges, and the lawful interest thereon, 49 then owing on such parcel, and the payment of the balance of such taxes, 50 assessments and other legal charges and interest in four equal quarterly 51 installments together with all current taxes, assessments and other 52 legal charges that accrue during such period. Upon receipt of payment in 53 full of the amount specified in this subdivision, the commissioner of 54 finance shall direct the corporation counsel to prepare and cause to be 55 entered an order discontinuing the in rem tax foreclosure action as to 56 said property, cancelling the notice of pendency of such action as to

S. 8578 323 1 said property and vacating and setting aside the final judgment. Upon 2 the execution of an installment agreement and payment of the amounts due 3 at the time such agreement is executed as provided in this subdivision, 4 the commissioner of finance shall direct the corporation counsel to 5 prepare and cause to be entered an order vacating and setting aside the 6 final judgment. The entry of either such order shall restore all 7 parties, including owners, mortgagees and any and all lienors, receivers 8 and administrators and encumbrancers, to the status they held immediate- 9 ly before such final judgment was entered. Where the commissioner of 10 finance approves an application requesting an installment agreement 11 pursuant to this subdivision, the order vacating and setting aside the 12 final judgment shall provide that in the event of any default as to the 13 payment of either quarterly installments or current taxes, assessments 14 or other legal charges during the term of such agreement, all payments 15 under said agreement shall be forfeited and the corporation counsel, 16 immediately upon notification by the commissioner of finance of such 17 default, shall cause to be entered as to such property a supplemental 18 judgment of foreclosure in the in rem action which authorizes the 19 commissioner of finance to prepare, execute and cause to be recorded a 20 deed conveying either to the city or to a third party full and complete 21 title to such lands. Upon the entry of such supplemental judgment, the 22 provisions of subdivisions c through i of this section shall apply in 23 the same manner as such subdivisions would have applied had no payment 24 been made nor installment agreement executed during the four-month peri- 25 od specified in this subdivision. 26 e. 1. If the commissioner of finance has prepared, executed and caused 27 to be recorded a deed conveying to the city full and complete title to a 28 parcel of class one or class two real property acquired by in rem tax 29 foreclosure, the city's interest in such parcel may be released pursuant 30 to this subdivision on the application of any party who has an interest 31 in said parcel as either owner, mortgagee, lienor, or encumbrancer at 32 the time of the city's acquisition thereof where such application is 33 made at any time up to sixteen months from the date on which the deed by 34 which the city acquired title to said parcel was recorded. 35 2. Any such application shall be made in writing to the commissioner 36 of general services and shall be verified. It shall contain the informa- 37 tion required pursuant to paragraph one of subdivision b of section 38 11-424 of this chapter, the documents required by subdivision c of such 39 section, and shall be accompanied by the fees required by paragraphs 40 three and six of subdivision b of such section. The fee required by 41 paragraph three of subdivision b of section 11-424 of this chapter shall 42 not be refundable. 43 3. The city's interest in any such parcel shall be released only after 44 payment of the sums of money specified in subdivision d of section 45 11-424 of this chapter. 46 4. The provisions contained in subdivision g of section 11-424 of this 47 chapter shall govern such an application, except as follows: 48 (a) where such provisions are inconsistent with the provisions 49 contained in this subdivision, the provisions contained in this subdivi- 50 sion shall govern such application; and 51 (b) where the in rem foreclosure release board denies a written 52 request for an installment agreement that was filed in connection with 53 an application for release of the city's interest in a parcel of class 54 one or class two real property and such application was filed within 55 thirty days of the date of the city's acquisition of the property sought 56 to be released, the board may, in its discretion, authorize a release of

S. 8578 324 1 the city's interest, provided that the applicant thereafter pays all the 2 amounts required to be paid pursuant to subdivision d of section 11-424 3 of this chapter within thirty days of the date on which a letter 4 requesting such payment is mailed or delivered to such applicant. 5 5. Upon receipt of all the amounts required to be paid pursuant to 6 this subdivision, the commissioner of finance shall direct the corpo- 7 ration counsel to prepare and cause to be entered an order discontinuing 8 the in rem tax foreclosure action as to said property, cancelling the 9 notice of pendency of such action as to said property and vacating and 10 setting aside the final judgment entered pursuant to subdivision b of 11 this section and the deed executed and recorded pursuant to such final 12 judgment as to said property. The entry of such order shall restore all 13 parties, including owners, mortgagees and any and all lienors, receivers 14 and administrators and encumbrancers, to the status they held immediate- 15 ly before the final judgment was entered, as if the in rem tax foreclo- 16 sure had never taken place, and shall render said property liable for 17 all taxes, deficiencies, management fees and liens which shall accrue 18 subsequent to those paid in order to obtain the release provided for in 19 this subdivision, or which were, for whatever reason, omitted from the 20 payment made to obtain said release. 21 f. If the commissioner of finance has prepared, executed and caused to 22 be recorded a deed conveying to the city full and complete title to a 23 parcel of class one or class two real property acquired by in rem tax 24 foreclosure and such parcel is entitled to an exemption under any of the 25 provisions of article four of the real property tax law during all or 26 part of the period covered by the tax items appearing on a list of 27 delinquent taxes, the owner of such parcel may apply for a release of 28 the city's interest in such exempt property under the provisions of 29 subdivision e of this section during the period of time set forth in 30 paragraph one of such subdivision and for an additional period up to ten 31 years from the date on which the deed by which the city acquired title 32 to said property was recorded. The application of such owner shall be 33 accompanied by the nonrefundable fee required by paragraph four of 34 subdivision b of section 11-424 of this chapter and shall contain, in 35 addition to the statements, searches and proofs required by subdivision 36 e of this section, a statement that an exemption under the real property 37 tax law is being claimed. Such application shall also state either that 38 it is accompanied by the written certificate of the comptroller setting 39 forth the precise period during which said property, while owned by such 40 application, and during the period after the city's acquisition up to 41 the date of the certificate if said property was still being used for an 42 exempt purpose after said acquisition, was entitled to an exemption and 43 the exact nature and extent of such exemption or that an application for 44 such written certificate has been filed with the comptroller. On issuing 45 such written certificate, the comptroller shall cancel those tax items 46 which have accrued during the period covered by the certificate to the 47 extent the applicant is entitled to an exemption as set forth in the 48 certificate. A release of the city's interest may be authorized only at 49 the discretion of the in rem foreclosure release board and, except as 50 otherwise provided in paragraph four of subdivision e of this section, 51 subject to all the restrictions set forth in subdivision g of section 52 11-424 of this chapter. A release to an exempt applicant shall be 53 effected only after said applicant has paid all of the amounts required 54 to be paid by subdivision d of section 11-424 of this chapter, except 55 for those tax items which have been canceled, in whole or in part, 56 pursuant to the comptroller's certificate, within thirty days of the

S. 8578 325 1 date on which the letter requesting payment is mailed or delivered to 2 the applicant. 3 g. If the commissioner of finance has prepared, executed and caused to 4 be recorded a deed conveying to the city or to a third party full and 5 complete title to a parcel of class one or class two real property 6 acquired by in rem tax foreclosure, the provisions contained in subdivi- 7 sions f and i of section 11-424 of this chapter for the release of prop- 8 erty so acquired shall not be available. If the commissioner of finance 9 has prepared, executed and caused to be recorded a deed conveying to a 10 third party full and complete title to a parcel of class one or class 11 two real property acquired by in rem tax foreclosure, the provisions 12 contained in subdivisions e and f of this section for the release of 13 property so acquired shall not be available. 14 h. Every deed given pursuant to the provisions of this section shall 15 be presumptive evidence that the action and all proceedings therein and 16 all proceedings prior thereto from and including the assessment of the 17 lands affected and all notices required by law were regular and in 18 accordance with all provisions of law relating thereto. After four 19 months from the date of entry of the final judgment authorizing the 20 award of possession of any parcel of class one or class two real proper- 21 ty pursuant to the provisions of this section, the presumption shall be 22 conclusive. No action to set aside such deed may be maintained unless 23 the action is commenced and a notice of pendency of the action is filed 24 in the office of the property county clerk prior to the time that the 25 presumption becomes conclusive as aforesaid. Should any lawsuit or 26 proceeding be commenced to set aside a deed conveying to a third party a 27 parcel of class one or class two real property pursuant to the 28 provisions of this section, such third party shall send to the corpo- 29 ration counsel within ten days of their receipt a copy of any papers 30 served on such third party in such lawsuit or proceeding. 31 i. If the commissioner of finance does not execute a deed conveying to 32 the city or to a third party a parcel of class one or class two real 33 property within eight months after the entry of final judgment authoriz- 34 ing the award of possession of such parcel pursuant to subdivision b of 35 this section, the commissioner of finance shall direct the corporation 36 counsel to prepare and cause to be entered an order discontinuing the in 37 rem foreclosure action as to said property, canceling the notice of 38 pendency of such action as to said property and vacating and setting 39 aside said final judgment. The entry of such order shall restore all 40 parties, including owners, mortgagees and any and all lienors, receivers 41 and administrators and encumbrancers, to the status they held immediate- 42 ly before such final judgment was entered. 43 j. If the commissioner of finance directs the corporation counsel, 44 pursuant to subdivision i of this section, to prepare and cause to be 45 entered an order discontinuing the in rem foreclosure action with 46 respect to a parcel of class one or class two real property determined 47 to be distressed pursuant to section 11-401.1 of this chapter, the 48 commissioner of housing preservation and development shall evaluate the 49 parcel determined to be distressed and take such action as he or she 50 deems appropriate under the programs, existing at the time of such eval- 51 uation, that are designed to encourage the rehabilitation and preserva- 52 tion of existing housing, and shall monitor or cause to be monitored the 53 status of the property. The commissioner of housing preservation and 54 development shall maintain a register of properties determined to be 55 distressed.

S. 8578 326 1 § 11-412.2 Council review of conveyance to a third party. The commis- 2 sioner of finance shall, prior to the execution of a deed conveying full 3 and complete title of any parcel of class one or class two real property 4 to a third party pursuant to subdivision c of section 11-412.1 of this 5 chapter, notify the council of the proposed conveyance. Within forty- 6 five days of such notification, the council may act by local law disap- 7 proving the proposed conveyance. In the event the council does not act 8 by local law within such forty-five day period, the council shall be 9 deemed to have approved the proposed conveyance. During such forty-five 10 day period or, if the city council acts by local law pursuant to this 11 section, during the period of time from the notification of the council 12 to the presentation to the mayor of such local law and during any addi- 13 tional period of time prescribed in section 37 of the charter, the 14 eight-month period provided in subdivisions c and i of section 11-412.1 15 of this chapter shall be tolled. 16 § 11-413 Withdrawal of parcels from foreclosure. a. The commissioner 17 of finance may, prior to final judgment, withdraw a parcel from a 18 proceeding under this chapter for any of the following reasons, (1) a 19 question which the commissioner deems meritorious has been raised as to 20 the validity of the tax liens affecting the parcel, (2) the city collec- 21 tor has accepted a payment of all taxes and interest which rendered the 22 parcel subject to foreclosure hereunder because the records in the 23 commissioner's office indicated that the principal amount of such taxes 24 was exceeded by the principal amount of subsequent taxes which would not 25 have rendered the parcel subject to foreclosure hereunder and which had 26 been paid prior to the commencement of said proceeding or (3) in cases 27 where the tax foreclosure action cannot be maintained such as, but not 28 limited thereto, where the charges which rendered a parcel subject to 29 foreclosure hereunder have been cancelled or were paid before the 30 commencement of the foreclosure proceeding but such payment was not 31 reported or did not clear for payment until after the commencement of 32 said proceeding, or where a name and address appearing on an owner's 33 registration card or an in rem card filed pursuant to section 11-416 or 34 11-417 of this chapter and contained in the files of the city collector 35 did not appear in the mailing list used by the commissioner of finance 36 for mailing notices of foreclosure in such proceeding. 37 b. To effectuate such withdrawal the commissioner of finance shall 38 deliver a certificate of withdrawal to the corporation counsel who shall 39 file it in the office of the county clerk in which the list of delin- 40 quent taxes was filed. The filing of such certificate with such county 41 clerk shall effect a discontinuance of the tax foreclosure action as to 42 the affected parcel, and the county clerk shall thereupon note such 43 withdrawal and discontinuance in the copy of the list of delinquent 44 taxes maintained by him or her adjacent to the county clerk's block 45 index of notices of pendency of action and shall cancel and discharge 46 any and all notations of the filing of said list of delinquent taxes as 47 to said parcel that may appear in any other books, records, indices and 48 dockets maintained in said clerk's office. 49 c. The commissioner of finance shall also deliver a duplicate original 50 certificate of withdrawal to the person entitled to such withdrawal. 51 d. The commissioner of finance shall recite the parcels so withdrawn 52 and the reasons for withdrawal in an affidavit of regularity to be 53 submitted by the commissioner in each action brought pursuant to this 54 chapter. 55 e. The commissioner of finance shall issue a certificate of withdrawal 56 whenever taxes and interest are paid, cancelled, liquidated or otherwise

S. 8578 327 1 lawfully disposed of as to any parcel which was previously severed 2 pursuant to section 11-409 of this chapter because an answer or liti- 3 gation was pending. 4 § 11-414 Right of redemption not diminished. The period of time in 5 which any owner of, or other person having an interest in a parcel of 6 property may redeem from a sale of a transfer of tax lien is not hereby 7 diminished nor shall such period of time be diminished by the commence- 8 ment of any action brought pursuant to this chapter. 9 § 11-415 Priority of liens. Tax liens shall rank in priority as may 10 now, or as may hereafter, be provided by law. 11 § 11-416 Owner's registration cards; mailing tax bills and notices to 12 registered owners or their designees. a. The commissioner of finance 13 shall maintain a file of owner's registration cards submitted by owners 14 of real property. Each such owner's registration card shall be signed by 15 the owner or a duly authorized representative and shall state the date 16 on which it was filed, the owner's full name and post office address and 17 a description of the premises by reference to the section, block, and 18 lot numbers on the tax map. 19 b. The commissioner of finance shall mail bills for taxes, charges and 20 assessments to all owners who have filed owner's registration cards as 21 herein provided, but the failure of the commissioner of finance so to 22 mail such bill shall not invalidate or otherwise affect the tax, charge 23 or assessment represented thereby nor prevent the accruing of any inter- 24 est or penalty imposed for the non-payment thereof, nor prevent or stay 25 proceedings under this chapter, nor effect the title of the plaintiff or 26 any purchaser under such proceedings. 27 c. The commissioner of finance shall also mail notice of foreclosure 28 and any other process required by this chapter to all owners who have 29 filed owner's registration cards whenever the parcels as to which such 30 cards were filed are included in a list of delinquent taxes filed pursu- 31 ant to this chapter. The failure to receive such notice or process as 32 herein provided shall not affect the validity of any action or proceed- 33 ing brought pursuant to this chapter. 34 d. An owner who files an owner's registration card may also designate 35 thereon the full name and post office address of a mortgagee, lienor or 36 other person to receive bills and notices. Where such designation is 37 made, the commissioner of finance shall not mail any bills and notices 38 to the owner but shall mail all bills and notices to the owner's desig- 39 nee. 40 § 11-417 In rem cards; mailing notices to other interested persons. 41 a. The commissioner of finance shall, in addition to the file maintained 42 by him or her pursuant to section 11-416 of this chapter, maintain a 43 file of in rem cards submitted by any person having an interest in real 44 property who is not entitled to have tax bills mailed to him or her by 45 the commissioner of finance, including mortgagees, lienors, encumbranc- 46 ers and owners who have filed owner's registration cards designating 47 someone else to receive bills and notices. Each such in rem card shall 48 be signed by the person filing such card or a duly authorized represen- 49 tative, shall contain a description of the premises by reference to the 50 section, block and lot numbers on the tax map and shall state the date 51 on which said card was filed, the full name and post office address of 52 the person filing said card and the nature of the interest said person 53 has in said premises. 54 b. The commissioner of finance shall mail a notice of foreclosure and 55 any other process required by this chapter to each person who has filed 56 an in rem card whenever the parcels to which such cards refer are

S. 8578 328 1 included in a list of delinquent taxes filed pursuant to this chapter. 2 However, failure to receive such notice or process shall not affect the 3 validity of any proceeding brought pursuant to this chapter. 4 § 11-418 Writ of assistance. The city, after acquiring title to prem- 5 ises under and pursuant to the terms and provisions of this chapter, 6 shall be entitled to a writ of assistance, with the same force and 7 effect as if the city had acquired the property by virtue of a mortgage 8 foreclosure. 9 § 11-419 Consolidation of actions. Actions or proceedings pending in 10 the courts, or otherwise, to cancel a sale of a tax lien on lands a lien 11 upon which is being foreclosed by action under this chapter, shall be 12 terminated upon the institution of a foreclosure action pursuant to this 13 chapter, and the rights and remedies of the parties in interest to such 14 pending actions or proceedings shall be determined by the court in such 15 foreclosure action. 16 § 11-420 Lands held for public use; right of sale. Whenever the city 17 shall become vested with the title to lands by virtue of a foreclosure 18 proceeding brought pursuant to the provisions of this chapter, such 19 lands shall, unless actually used for other than municipal purposes, be 20 deemed to be held by the city for a public use but for a period of not 21 more than three years from the date of the final judgment. The city is 22 hereby authorized to sell and convey such lands in the manner provided 23 by law for the sale and conveyance of other real property held and owned 24 by the city and not otherwise. 25 § 11-421 Certificate of sale as evidence. The transfer of tax lien or 26 any other written instrument representing a tax lien shall be presump- 27 tive evidence in all courts in all proceedings under this chapter by and 28 against the purchaser and his or her representatives, heirs and assigns, 29 of the truth of the statements therein, of the title of the purchaser to 30 the property therein described, and of the regularity and validity of 31 all proceedings had in reference to the taxes, assessments or other 32 legal charges for the nonpayment of which the tax lien was sold and the 33 sale thereof. After two years from the issuance of such certificate or 34 other written instrument, no evidence shall be admissible in any court 35 in a proceeding under this chapter to rebut such presumption unless the 36 holder thereof shall have procured such transfer of tax lien or such 37 other written instrument by fraud or had previous knowledge that it was 38 fraudulently made or procured. 39 § 11-422 Deed in lieu of foreclosure. The city may when authorized by 40 resolution of the successor agency, officer or employee of the former 41 board of estimate and in lieu of prosecuting an action to foreclose a 42 tax lien on any parcel pursuant to this chapter accept a conveyance of 43 the interest of any person having any right, title, interest, claim, 44 lien or equity of redemption in or to such parcel. 45 § 11-423 Sales and foreclosures of tax liens. Notwithstanding any of 46 the provisions of this chapter the city may continue to sell tax liens, 47 transfer the same to purchasers and become the purchaser at such sales 48 of tax liens in the manner provided by this title. 49 § 11-424 Application to the city for release of property acquired by 50 in rem tax foreclosure. a. (1) The city's interest in property acquired 51 by in rem tax foreclosure may be released pursuant to this section on 52 the application of any party who had an interest in said property as 53 either owner, mortgagee, lienor or encumbrancer at the time of the 54 city's acquisition thereof where such application is made at any time up 55 to two years from the date on which the deed by which the city acquired 56 title to said property was recorded.

S. 8578 329 1 (2) Notwithstanding any inconsistent provision of paragraph one of 2 this subdivision to the contrary, the city's interest in property 3 acquired by in rem tax foreclosure may be released pursuant to this 4 section upon application of any party who had an interest in said prop- 5 erty as either owner, mortgagee, lienor or encumbrancer at the time of 6 the city's acquisition thereof where such application is made more than 7 two years after the date on which the deed by which the city acquired 8 title to said property was recorded provided such application is author- 9 ized by the council as hereinafter provided. An application for such 10 release and the documents required by subdivision c of this section in 11 support thereof shall be filed with the department of citywide adminis- 12 trative services in the manner provided in subdivision b of this 13 section. The department of citywide administrative services shall give 14 the council written notice of the receipt of each such filing. After 15 review and approval of the application by the corporation counsel as to 16 form and eligibility of the applicant, the department of citywide admin- 17 istrative services shall send a copy of such application to the in rem 18 foreclosure release board and to the council. Upon receipt of such 19 application, the in rem foreclosure release board shall take no further 20 action on such application unless the council adopts a resolution within 21 one hundred twenty days following the first stated meeting of the coun- 22 cil after receipt of such application authorizing the board to consider 23 such application. If the council fails to adopt a resolution within such 24 one hundred twenty-day period, the council shall be deemed to have 25 denied its authorization for the board to consider such application. A 26 resolution of the council pursuant to this paragraph shall describe the 27 property for which release is sought by borough, tax map, block and lot 28 number and shall specify that release of the city's interest in such 29 property is subject to the approval of the in rem foreclosure release 30 board and to all the conditions and restrictions set forth in this 31 section. 32 b. 1. Any such application shall be made in writing to the commission- 33 er of citywide administrative services and shall be verified. It shall 34 contain the name and address of the applicant and shall state the date 35 on which and the in rem action by which the city acquired title to the 36 property sought to be released. It shall also contain a statement speci- 37 fying the nature of the applicant's interest in the property and a full 38 description of the instrument from which the applicant's interest 39 derives including the date of execution, the date and place of the 40 recording or entry of said instrument and the parties thereto. In the 41 event the applicant's interest arises by reason of the death of a prior 42 owner, mortgagee, lienor or encumbrancer, then the application shall 43 also state the applicant's relationship to said decedent and shall 44 include whatever additional information may be necessary to prove the 45 applicant's right to make such application. 46 2. A fee of two hundred seventy-five dollars shall be paid on the 47 submission of any such application which is subject to the provisions of 48 subdivision f of this section, except that the fee for any such applica- 49 tion for the release of property improved by a one or two-family dwell- 50 ing shall be one hundred dollars. 51 3. A fee of five hundred fifty dollars shall be paid on the submission 52 of any such application which is subject to the provisions of subdivi- 53 sion g of this section, except that the fee for any such application for 54 the release of property improved by a one or two-family dwelling shall 55 be one hundred dollars.

S. 8578 330 1 4. A fee of two hundred seventy-five dollars shall be paid on the 2 submission of any such application which is subject to the provisions of 3 subdivision h of this section within four months from the date on which 4 the deed by which the city acquired title to the subject property was 5 recorded, and a fee of five hundred and fifty dollars shall be paid on 6 the submission of any such application which is subject to the 7 provisions of such subdivision not within four months from such date; 8 except that the fee for any such application which is subject to the 9 provisions of such subdivision for the release of property improved by a 10 one or two-family dwelling shall be one hundred dollars. 11 5. The fees payable pursuant to paragraphs two, three and four of this 12 subdivision shall not be refundable. 13 6. In addition to the fees specified in paragraphs two, three and four 14 of this subdivision, there shall be paid on the submission of any appli- 15 cation which is subject to this section an amount at least equal to the 16 lesser of nine hundred dollars or the sum specified in paragraph one of 17 subdivision d of this section, which amount shall not be refundable, but 18 shall be applied in reduction of the sum specified in paragraph one of 19 subdivision d of this section; provided, however, that if a release 20 requires the authorization of the in rem foreclosure release board, and 21 such authorization is not given, such additional amount shall be 22 refunded to the applicant. 23 c. Each application shall be supported by the certified search of the 24 city register or by an official letter, certificate or certified search 25 of any title insurance or abstract company, organized and doing business 26 under the laws of this state. Such supporting instruments shall recite 27 the recording data both as to the deed by which the city acquired title 28 to the parcel sought to be released and the instrument from which the 29 applicant's interest derives. In the event the applicant's interest does 30 not appear of record but is derived by the death of an owner, mortgagee, 31 lienor or encumbrancer of record, then the application shall also be 32 supported by the affidavit of the applicant or other person having 33 information thereof, or by the duly written certificate or certification 34 of the county clerk or the clerk of any surrogate's or other court of 35 record, or by any other instrument or document required by the corpo- 36 ration counsel to substantiate the applicant's right to file such appli- 37 cation in compliance with the provisions of this section. 38 d. The city's interest shall be released only after payment, as to 39 each parcel to be released, of the following sums of money: 40 1. The principal amount due on all unpaid taxes, assessments, water 41 charges and sewer rents appearing on the list of delinquent taxes and 42 accruing thereafter together with interest at the rate or rates provided 43 by law. 44 2. Five percent of the amount paid pursuant to the preceding paragraph 45 but not exceeding one thousand dollars for each parcel. 46 3. Any deficiency which may result to the city after all payments made 47 by it for the repair, maintenance, and operation of the lands, real 48 estate or real property shall have been charged or debited in the appro- 49 priate accounts of the city and all rents, license fees and other moneys 50 collected by the city as a result of its operation of the said lands, 51 real estate or real property shall have been credited in such accounts. 52 Any contract for repair, maintenance, management or operation made by 53 the city on which it shall be liable, although payment thereon shall not 54 have been made, shall be deemed a charge or debit to such accounts as 55 though payment had been made. The amounts paid and collected by the city 56 as shown in its accounts and the necessity for making the several

S. 8578 331 1 payments and contracts to be charged as herein provided shall be conclu- 2 sive upon the applicant. Where a deficiency under this subdivision shall 3 be created or increased by the failure of the city to collect rents, 4 license fees or other moneys to which the city may have been entitled, 5 the right to collect or to bring action for the same shall be assigned, 6 transferred and set over to the applicant by an instrument in writing. 7 4. Any and all costs and disbursements which shall have been awarded 8 to the city or to which it may have become entitled by operation of law 9 or which it may have paid or become liable for payment in connection 10 with any litigation between it and the applicant or any person having an 11 estate or interest in the lands, real estate or real property to be 12 released resulting directly or indirectly from the foreclosure by action 13 in rem of the delinquent taxes affecting said lands, real estate or real 14 property. 15 5. A reasonable monthly fee to be determined by the city, through the 16 department of citywide administrative services, for management services 17 and operations of the lands, real estate or real property by the city 18 prior to the release of said lands, real estate or property. 19 6. The city, through the department of citywide administrative 20 services, shall also require as additional consideration for such 21 release, the payment of all arrears on mortgages held by the city and 22 all liens accruing to it by operation of law including but not limited 23 to relocation and emergency repair liens. 24 e. The corporation counsel shall effect the release of the city's 25 interest in property acquired by in rem tax foreclosure, as provided for 26 in this section, by preparing and causing to be entered an order discon- 27 tinuing the in rem tax foreclosure action as to said property, cancel- 28 ling the notice of pendency of such action as to said property and 29 vacating and setting aside the in rem judgment of foreclosure and the 30 deed executed and recorded pursuant to such judgment of foreclosure as 31 to said property. The entry of such order shall restore all parties, 32 including owners, mortgagees and any and all lienors, receivers and 33 administrators and encumbrancers, to the status they held at the time 34 the city acquired title to said property, as if the in rem tax foreclo- 35 sure had never taken place, and shall render said property liable for 36 all taxes, deficiencies, management fees and liens which shall accrue 37 subsequent to those paid in order to obtain the release provided for in 38 this section, or which were, for whatever reason, omitted from the 39 payment made to obtain said release. 40 f. If an application pursuant to this section, and the documents 41 required by subdivision c of this section in support thereof, are filed 42 within four months after the date of the city's acquisition of the 43 subject property, said application shall be granted providing the corpo- 44 ration counsel approves the application as to form, timeliness and 45 eligibility of the applicant and providing the applicant has paid all 46 amounts required to be paid by subdivision d of this section within 47 thirty days of the date on which a letter requesting applicant to make 48 such payment is mailed or delivered to the applicant. The city shall not 49 sell or assign any property acquired by in rem tax foreclosure within 50 four months of said acquisition but this provision shall not prevent the 51 city from authorizing condemnation of such property or vesting title 52 thereto in a condemnation proceeding during said four month period. In 53 the event an application pursuant to this section is filed within four 54 months of the city's acquisition by in rem tax foreclosure and title to 55 the subject property vests in condemnation before the city's interest 56 therein has been released by the vacate order provided for herein, the

S. 8578 332 1 applicant shall be entitled to the condemnation award for such property 2 without the entry of such vacate order, providing the corporation coun- 3 sel has approved the application as aforesaid and providing that the 4 amounts specified in subdivision d of this section, if not previously 5 paid, are deducted from said condemnation award, with taxes apportioned 6 to the date of the condemnation title vesting. 7 g. If an application for a release of the city's interest in property 8 acquired by in rem tax foreclosure, and the documents required by subdi- 9 vision c of this section in support thereof, have been filed within the 10 time allowed in paragraph one of subdivision a of this section, but more 11 than four months after the date of the city's acquisition or if an 12 application for such release has been authorized by a resolution of the 13 council pursuant to paragraph two of subdivision a of this section and 14 such application and the documents required by subdivision c of this 15 section in support thereof have been filed, the in rem foreclosure 16 release board may, in its discretion, authorize the release of the 17 city's interest in said property pursuant to this section, provided that 18 the application has been approved by the corporation counsel as to form, 19 timeliness and eligibility of the applicant and provided that the city 20 has not sold or otherwise disposed of said property and provided, 21 further, that said property has not been condemned or assigned to any 22 agency of the city and is not the subject of contemplated use for any 23 capital or urban renewal project of the city. The corporation counsel 24 shall effect such discretionary release only where the applicant, after 25 the board's authorization of the release, has paid all the amounts 26 required to be paid by subdivision d of this section within thirty days 27 of the date on which a letter requesting the applicant to make such 28 payment is mailed or delivered to the applicant. The in rem foreclosure 29 release board may also, in its discretion, authorize a release of the 30 city's interest in such property, pursuant to the above provisions, 31 whenever an application for such release, approved as to form, timeli- 32 ness and eligibility by the corporation counsel, has been filed at any 33 time during the period allowed in subdivision a of this section in which 34 the applicant has requested an installment agreement of the commissioner 35 of citywide administrative services for the payment of the amounts 36 required to be paid by subdivision d of this section provided that said 37 commissioner has approved such request. The commissioner of citywide 38 administrative services shall not approve any such request unless the 39 applicant shall have given notice by certified mail to each tenant 40 located on the parcel, of the request and shall have given such commis- 41 sioner an affidavit stating that such notice has been provided, within 42 thirty days after the request. Any false statement in such affidavit 43 shall not in any way affect the validity of the agreement, be grounds 44 for its cancellation or in any way affect the release of the city's 45 interest in the parcel. Such agreement shall require, in addition to 46 full payment of the amounts due under paragraphs two, three, four, five 47 and six of subdivision d of this section, a first installment of fifty 48 percent of the amount due under paragraph one of said subdivision d with 49 the balance of said amount to be paid in four equal quarterly install- 50 ments together with all current taxes, assessments or other legal charg- 51 es that accrue during such period; provided, however, that: (i) whenever 52 a request for an installment agreement is made of the commissioner of 53 citywide administrative services by a company organized pursuant to 54 article eleven of the private housing finance law with the consent and 55 approval of the department of housing preservation and development or 56 for a parcel which is an owner-occupied residential building of not more

S. 8578 333 1 than five residential units, the commissioner of citywide administrative 2 services may, as to that portion of the amounts due under paragraph one 3 of subdivision d of this section which became due prior to the acquisi- 4 tion by the article eleven company of its interest in the property and 5 as to the amount due under paragraph one of subdivision d of this 6 section in the case of such an owner-occupied building, approve a 7 reduction of such first installment to an amount not less than ten 8 percent of the amount due under paragraph one of subdivision d of this 9 section and an increase in the number of the following equal quarterly 10 installments to a number which shall be equal to three times the number 11 of unpaid quarters of real estate taxes or the equivalent thereof but 12 which shall in no event exceed forty-eight, and (ii) notwithstanding 13 clause (i) of this paragraph, whenever an installment agreement is 14 requested on or after the date on which this clause takes effect with 15 respect to a parcel that, immediately prior to the city's acquisition 16 thereof by in rem tax foreclosure, was owned by a company organized 17 pursuant to article eleven of the state private housing finance law with 18 the consent and approval of the department of housing preservation and 19 development, or with respect to a parcel that is a residential building 20 containing not more than five residential units, a residential condomin- 21 ium unit or a residential building held in a cooperative form of owner- 22 ship, the commissioner of general services may, as to the amount due 23 under paragraph one of subdivision d of this section, approve an 24 installment agreement containing the terms relating to the required 25 percentage payment for the first installment and the required number of 26 subsequent quarterly installments, that would be applicable to such 27 parcel under paragraph two (but without regard to any reference therein 28 to paragraph three) of subdivision i of section 11-409 of this chapter. 29 For purposes of calculating the number of such following equal quarterly 30 installments, unpaid real estate taxes or the equivalent which are, on 31 and after July first, nineteen hundred eighty-two, due and payable on an 32 other than quarterly basis shall be deemed to be payable on a quarterly 33 basis. Where the in rem foreclosure release board denies an application 34 requesting an installment agreement the board shall authorize a release 35 of the city's interest, provided that the applicant thereafter pays all 36 the amounts required to be paid by subdivision d of this section within 37 thirty days of the date on which a letter requesting such payment is 38 mailed or delivered to the applicant only when said application and the 39 documents required by subdivision c of this section in support thereof 40 were filed within thirty days of the date of the city's acquisition of 41 the property sought to be released. Where the in rem foreclosure 42 release board denies an application requesting an installment agreement 43 which was filed more than thirty days after the date of the city's 44 acquisition, the board may, in its discretion, authorize a release of 45 the city's interest, provided that the applicant thereafter pays all the 46 amounts required to be paid by subdivision d of this section within 47 thirty days of the date on which a letter requesting such payment is 48 mailed or delivered to the applicant. Where the in rem foreclosure 49 release board approves an application requesting an installment agree- 50 ment, the order releasing the city's interest shall provide that in the 51 event of any default as to the payment of either quarterly installments 52 or current taxes, assessments or other legal charges during the term of 53 such agreement, as set forth in the board's resolution, all payments 54 made under said agreement shall be forfeited and the city shall be enti- 55 tled to reacquire the property so released. The corporation counsel 56 shall effect such reacquisition by causing to be entered as to such

S. 8578 334 1 property a supplemental judgment of foreclosure in the in rem action by 2 which said property was originally acquired immediately on notification 3 by the commissioner of finance of such default. 4 h. An owner of property entitled to an exemption under any of the 5 provisions of article four of the real property tax law during all or 6 part of the period covered by the tax items appearing on a list of 7 delinquent taxes may apply for a release of the city's interest in such 8 exempt property under the provisions of this section during the periods 9 of time set forth herein and for an additional period up to ten years 10 from the date of the city's acquisition of said property by in rem fore- 11 closure. The application of such owner shall contain, in addition to the 12 statements, searches and proofs required by this section, a statement 13 that an exemption under the real property tax law is being claimed. Such 14 application shall also state either that it is accompanied by the writ- 15 ten certificate of the comptroller setting forth the precise period 16 during which said property, while owned by such applicant, and during 17 the period after the city's acquisition up to the date of the certif- 18 icate if said property was still being used for an exempt purpose after 19 said acquisition, was entitled to an exemption and the exact nature and 20 extent of such exemption or that an application for such written certif- 21 icate has been filed with the comptroller. On issuing such written 22 certificate, the comptroller shall cancel those tax items which have 23 accrued during the period covered by the certificate to the extent the 24 applicant is entitled to an exemption as set forth in the certificate. 25 Where an application by an exempt owner is filed more than four months 26 after the date of the city's acquisition of the subject property, a 27 release of the city's interest may be issued only at the discretion of 28 the in rem foreclosure release board and subject to all the restrictions 29 set forth in subdivision g of this section. A release to an exempt 30 applicant shall be effected only after said applicant has paid all the 31 amounts required to be paid by subdivision d of this section, except for 32 those tax items which have been cancelled, in whole or in part, pursuant 33 to the comptroller's certificate, within thirty days of the date on 34 which a letter requesting payment is mailed or delivered to the appli- 35 cant. 36 i. The corporation counsel shall also effect the release of the city's 37 interest in property acquired by in rem foreclosure, as provided for in 38 this action, whenever the commissioner of finance shall accept as to any 39 parcel so acquired, the payment provided for in paragraph two of subdi- 40 vision a of section 11-413 of this chapter. Said commissioner may accept 41 such payment at any time within four months of the date of the city's 42 acquisition and may further, subject to the approval of the in rem fore- 43 closure release board, accept such payment at any time more than four 44 months after the date of the city's acquisition but less than two years 45 from the date on which the city's deed was recorded providing said prop- 46 erty has not been sold or otherwise disposed of nor condemned or 47 assigned to any agency of the city and is not the subject of contem- 48 plated use of any capital or urban renewal project of the city. 49 § 11-424.1 In rem foreclosure release board. There shall be an in rem 50 foreclosure release board consisting of the mayor, the speaker of the 51 city council, the borough president, the corporation counsel and the 52 commissioner of finance. Members of the board may, by written authority 53 filed with the board and with the city clerk, appoint delegates to act 54 on their behalf as members of the board. The board shall have the power, 55 acting by resolution, to authorize the release of the city's interest in 56 property acquired by in rem tax foreclosure in accordance with sections

S. 8578 335 1 11-412.1 and 11-424 of the code based upon a determination, in its 2 discretion, that such release would be in the best interests of the 3 city. The board shall act after a meeting at which the public has been 4 provided an opportunity to comment on the proposed action. A resolution 5 of the board authorizing a release of the city's interest in any proper- 6 ty shall be adopted only upon the affirmative vote of not less than a 7 majority of all the members of the board. The board may consider any 8 information it deems relevant to a determination. The board shall not be 9 required to state the reasons for its determination. 10 § 11-425 Agreements for payment of delinquent taxes and charges in 11 installments. a. During the period beginning on May ninth, nineteen 12 hundred seventy-seven and ending on June thirtieth, nineteen hundred 13 seventy-seven, the commissioner of finance or, when so specified herein- 14 after, the commissioner of general services, shall be authorized and 15 empowered to make and execute agreements in the circumstances and 16 subject to the terms, conditions and limitations set forth in this 17 section; provided, however, that if the commissioner of finance or, 18 where applicable, the commissioner of general services determines in his 19 or her sole discretion that good cause exists, he or she may make and 20 execute such agreements during an additional period ending not later 21 than July thirty-first, nineteen hundred seventy-seven. 22 b. (1) Whenever it shall appear that a tax lien on a parcel has been 23 due and unpaid for a period of at least six months from the date on 24 which the tax, assessment or other legal charge represented thereby 25 became a lien, the commissioner of finance may enter into an agreement 26 with the owner of such parcel or other person claiming to have an inter- 27 est therein providing for the payment of such delinquent taxes, assess- 28 ments or other legal charges and interest and penalties in installments, 29 the first of which shall be equal to at least fifteen percent of such 30 arrears and shall be payable upon the execution of such agreement. Each 31 remaining installment shall be equal to at least an amount produced by 32 dividing the balance of such arrears by a factor determined by multiply- 33 ing the number of quarters of such arrears by two hundred percent; 34 provided, however, in no event shall such factor be in excess of thir- 35 ty-two. Each such remaining installment shall be payable quarterly on 36 the first of July, October, January and April. 37 (2) If an agreement authorized by paragraph one of this subdivision is 38 executed prior to the time the commissioner of finance files in the 39 office of the county clerk a list of delinquent taxes covering the city 40 or portion of the city in which the subject parcel is located, such 41 parcel shall be excluded from such list of delinquent taxes, provided, 42 at the time such list is filed, there is no default in the agreement and 43 all current taxes, assessments or other legal charges have been paid as 44 they became due or within the period of grace provided by law. In the 45 event of any default in the agreement or any failure to make timely 46 payment of any current item, the parcel shall, if then delinquent for 47 the applicable period specified in section 11-404 of this chapter, be 48 eligible for inclusion in any list of delinquent taxes thereafter filed. 49 (3) If an in rem foreclosure action has been commenced against any 50 parcel prior to May ninth, nineteen hundred seventy-seven, the commis- 51 sioner of finance may, notwithstanding the provisions of paragraph three 52 of subdivision a of section 11-413 of this chapter, enter into an agree- 53 ment authorized and described in the foregoing provisions of this 54 section with respect to such parcel. However, if such an agreement is 55 entered into subsequent to the last date for redemption specified in 56 subdivision a of section 11-407 of this chapter, there shall be paid to

S. 8578 336 1 the commissioner of finance at the time said agreement is executed an 2 amount equal to the penalty which would have been payable under subdivi- 3 sion c of section 11-407 of this chapter had the person executing the 4 agreement made a late redemption payment. Such amount shall be in addi- 5 tion to any installment payments required to be made under the agreement 6 and shall not be credited against any such installment payments. Any 7 parcel which is the subject of an agreement made pursuant to this para- 8 graph may, prior to final judgment, be withdrawn from the action, 9 provided there has been no default in the agreement, and provided 10 further that all current taxes, assessments or other legal charges are 11 paid when they become due or within the period of grace provided by law. 12 Such withdrawal shall be effected by the commissioner of finance in the 13 manner provided in section 11-413 of this chapter. 14 (4) Any person who, prior to May ninth, nineteen hundred seventy-sev- 15 en, has made, executed and filed with the commissioner of finance an 16 agreement pursuant to the provisions of paragraph three of subdivision a 17 of section 11-413 of this chapter, shall be permitted to make applica- 18 tion to the commissioner of finance for the purpose of having such 19 agreement cancelled and a new agreement executed as hereinabove 20 provided. 21 If an agreement executed prior to May ninth, nineteen hundred seven- 22 ty-seven is not cancelled as herein provided, any installments due and 23 payable under such agreement on or after July first, nineteen hundred 24 seventy-seven shall be subject to interest at the rate specified in 25 paragraph five of this subdivision, but only if, as of July first, nine- 26 teen hundred seventy-seven, there is no default in the agreement and all 27 current taxes, assessments or other legal charges have been paid within 28 the time allowed by law. Such rate of interest shall be calculated in 29 the manner and shall be subject to all the conditions provided in said 30 paragraph five. 31 (5) When an agreement has been entered into pursuant to this subdivi- 32 sion, the commissioner of finance shall, notwithstanding the rates of 33 interest prescribed in section 11-224, 11-312 or 11-313 of this title, 34 charge, collect and receive interest on the arrears due and payable 35 under such agreement, to be calculated at the rate of seven percent per 36 annum from July first, nineteen hundred seventy-seven to the date of 37 payment of each installment. Any interest accrued or accruing prior to 38 July first, nineteen hundred seventy-seven shall not be affected by the 39 provisions of this paragraph, but shall be charged, collected and 40 received in the manner and at the rates specified in section 11-224, 41 11-312 or 11-313 of this title. The seven percent rate of interest spec- 42 ified in this paragraph shall be applicable only if (i) there is no 43 default in the agreement entered into as provided in this section, and 44 (ii) all current taxes, assessments or other legal charges are paid as 45 they become due or within the period of grace provided by law. In the 46 event of any default or failure to make timely payment of any current 47 item, the seven percent rate of interest specified in this paragraph 48 shall thereupon cease to be applicable and the commissioner of finance 49 shall thereafter charge, collect and receive interest in the manner and 50 at the rates otherwise specified in this title. 51 (6) In addition to the terms and conditions required by the preceding 52 paragraphs of this subdivision to be included in agreements authorized 53 by this section, the commissioner of finance may in his or her 54 discretion include in such agreements such additional terms and condi- 55 tions, not inconsistent with this section, as he or she determines to be 56 necessary in order to properly carry out the provisions of this section.

S. 8578 337 1 The commissioner may also adopt such rules and regulations as may be 2 necessary to carry out the provisions of this section. 3 c. (1) If, pursuant to the provisions of section 11-424 of this chap- 4 ter, an application for the release of property acquired by the city 5 through in rem tax foreclosure is made within the four-month period 6 specified in subdivision f of section 11-424 of this chapter, and 7 provided such application is made during the period specified in subdi- 8 vision a of this section, the provisions of this subdivision shall, at 9 the election of the applicant, apply with respect to such application 10 and the release sought thereby. 11 (2) At the time of filing the application for release, an applicant 12 who elects to have the provisions of this subdivision apply to him or 13 her, shall pay to the city the amounts specified in paragraphs two, 14 three and four of subdivision d of section 11-424 of this chapter, for 15 this purpose, the amount specified in paragraph two thereof shall be 16 deemed to be the amount which would have been required to be paid there- 17 under had this section not been in effect. Concurrent with the making of 18 such payment, the applicant shall enter into an agreement with the 19 commissioner of general services providing for the payment of all 20 current taxes, assessments or other legal charges on the property as 21 they become due or within the grace period provided by law, and, in 22 addition, providing for the payment of the amount specified in paragraph 23 one of subdivision d of section 11-424 of this chapter in installments, 24 the first of which shall be equal to at least twenty-five percent of 25 such amount and shall be payable upon the execution of such agreement. 26 The balance of such amount shall be payable in twelve equal quarterly 27 installments, each of which shall be paid quarterly on the first of 28 July, October, January and April. 29 (3) Pending approval by the corporation counsel of an application for 30 release as to form, timeliness and eligibility of the applicant, all 31 payments made pursuant to the preceding paragraph shall be held in 32 escrow; in the event the corporation counsel disapproves the applica- 33 tion, such payments shall be returned to the applicant, and the agree- 34 ment executed by the applicant shall thereupon be cancelled. 35 (4) In the case of any agreement made and executed pursuant to para- 36 graph two hereof, interest on any installment due and payable thereunder 37 shall, notwithstanding the rates of interest prescribed in section 38 11-224, 11-312 or 11-313 of this title, be charged, collected and 39 received at the rate of seven percent per annum from July first, nine- 40 teen hundred seventy-seven to the date of payment of each installment. 41 Any interest accrued or accruing prior to July first, nineteen hundred 42 seventy-seven shall not be affected by the provisions of this paragraph, 43 but shall be charged, collected and received in the manner and at the 44 rates specified in section 11-224, 11-312 or 11-313 of this title. The 45 seven percent rate of interest specified in this paragraph shall be 46 applicable only if (i) there is no default in the agreement entered into 47 as provided in this subdivision, and (ii) all current taxes, assessments 48 or other legal charges are paid as they become due or within the period 49 of grace provided by law. 50 (5) No release for which application has been made pursuant to this 51 subdivision shall be granted until the final payment under the agreement 52 herein provided is received by the city. Upon receipt of such final 53 payment by the city the corporation counsel shall effect the release in 54 the manner provided in section 11-424 of this chapter. In the event of 55 any default in an agreement executed as provided in this subdivision or 56 any failure to pay current taxes, assessments or other legal charges as

S. 8578 338 1 they become due or within the grace period provided by law, such agree- 2 ment shall thereupon become void, the release process shall be termi- 3 nated, and all payments theretofore made shall be forfeited to the city. 4 (6) In addition to the terms and conditions required by the preceding 5 paragraphs of this subdivision to be included in agreements authorized 6 thereby, the commissioner of general services may in his or her 7 discretion include in such agreements such additional terms and condi- 8 tions, not inconsistent with this subdivision, as the commissioner 9 determines to be necessary in order to properly carry out the provisions 10 hereof. The commissioner of general services may also adopt such rules 11 and regulations as may be necessary to carry out the provisions of this 12 subdivision. 13 § 11-426 Agreements for payment of delinquent taxes and charges in 14 installments. a. During the period beginning on December second, nine- 15 teen hundred seventy-seven and ending on March thirty-first, nineteen 16 hundred seventy-eight, the commissioner of finance, or, when so speci- 17 fied hereinafter, the commissioner of general services, shall be author- 18 ized and empowered to make and execute agreements in the circumstances 19 and subject to the terms, conditions and limitations set forth in this 20 section. 21 b. (1) Whenever it shall appear that a tax lien on a parcel has been 22 due and unpaid for a period of at least six months from the date on 23 which the tax, assessment or other legal charge represented thereby 24 became a lien, the commissioner of finance may enter into an agreement 25 with the owner of such parcel or other person claiming to have an inter- 26 est therein providing for the payment of such delinquent taxes, assess- 27 ments or other legal charges and interest and penalties in installments, 28 the first of which shall be equal to at least fifteen percent of such 29 arrears and shall be payable upon the execution of such agreement. Each 30 remaining installment shall be equal to at least an amount produced by 31 dividing the balance of such arrears by a factor determined by multiply- 32 ing the number of quarters of such arrears by two hundred percent. In no 33 event, however, shall the factor referred to in the preceding sentence 34 be in excess of thirty-two. Each such remaining installment shall be 35 payable quarterly on the first of July, October, January and April. 36 (2) If an agreement authorized by paragraph one of this subdivision is 37 executed prior to the time the commissioner of finance files in the 38 office of the county clerk a list of delinquent taxes covering the city 39 or portion of the city in which the subject parcel is located, such 40 parcel shall be excluded from such list of delinquent taxes, provided, 41 at the time such list is filed, there is no default in the agreement and 42 all current taxes, assessments or other legal charges have been paid as 43 they became due or within the period of grace provided by law. In the 44 event of any default in the agreement or any failure to make timely 45 payment of any current item, the parcel shall, if then delinquent for 46 the applicable period specified in section 11-404 of this chapter, be 47 eligible for inclusion in any list of delinquent taxes thereafter filed. 48 (3) If an in rem foreclosure action has been commenced against any 49 parcel prior to December second, nineteen hundred seventy-seven, the 50 commissioner of finance may, notwithstanding the provisions of paragraph 51 three of subdivision a of section 11-413 of this chapter, enter into an 52 agreement authorized and described in the foregoing provisions of this 53 section with respect to such parcel. However, if such an agreement is 54 entered into subsequent to the last date for redemption specified in 55 subdivision a of section 11-407 of this chapter, there shall be paid to 56 the commissioner of finance at the time said agreement is executed an

S. 8578 339 1 amount equal to the penalty which would have been payable under subdivi- 2 sion c of section 11-407 of this chapter had the person executing the 3 agreement made a late redemption payment. Such amount shall be in addi- 4 tion to any installment payments required to be made under the agreement 5 and shall not be credited against any such installment payments. Any 6 parcel which is the subject of an agreement made pursuant to this para- 7 graph may, prior to final judgment, be withdrawn from the action, 8 provided there has been no default in the agreement, and provided 9 further that all current taxes, assessments or other legal charges are 10 paid when they become due or within the period of grace provided by law. 11 Such withdrawal shall be effected by the commissioner of finance in the 12 manner provided in section 11-413 of this chapter. 13 (4) Any person who, prior to December second, nineteen hundred seven- 14 ty-seven, has made, executed and filed with the commissioner of finance 15 an agreement pursuant to the provisions of paragraph three of subdivi- 16 sion a of section 11-413 of this chapter, shall be permitted to make 17 application to the commissioner of finance for the purpose of having 18 such agreement cancelled and a new agreement executed as hereinabove 19 provided. 20 If an agreement executed prior to December second, nineteen hundred 21 seventy-seven is not cancelled as herein provided, any installments due 22 and payable under such agreement on or after April first, nineteen 23 hundred seventy-eight shall be subject to interest at the rate specified 24 in paragraph five of this subdivision, but only if, as of April first, 25 nineteen hundred seventy-eight, there is no default in the agreement and 26 all current taxes, assessments or other legal charges have been paid 27 within the time allowed by law. Such rate of interest shall be calcu- 28 lated in the manner and shall be subject to all the conditions provided 29 in said paragraph five. 30 (5) When an agreement has been entered into pursuant to this subdivi- 31 sion, the commissioner of finance shall, notwithstanding the rates of 32 interest prescribed in section 11-224, 11-312 or 11-313 of this title, 33 charge, collect and receive interest on the arrears due and payable 34 under such agreement to be calculated at the rate of seven percent per 35 annum from April first, nineteen hundred seventy-eight to the date of 36 payment of each installment. Any interest accrued or accruing prior to 37 April first, nineteen hundred seventy-eight shall not be affected by the 38 provisions of this paragraph, but shall be charged, collected and 39 received in the manner and at the rates specified in section 11-224, 40 11-312 or 11-313 of this title. The seven percent rate of interest spec- 41 ified in this paragraph shall be applicable only if (i) there is no 42 default in the agreement entered into as provided in this section, and 43 (ii) all current taxes, assessments or other legal charges are paid as 44 they become due or within the period of grace provided by law. In the 45 event of any default or failure to make timely payment of any current 46 item, the seven percent rate of interest specified in this paragraph 47 shall thereupon cease to be applicable and the commissioner of finance 48 shall thereafter charge, collect and receive interest in the manner and 49 at the rates otherwise specified in this title. 50 (6) In addition to the terms and conditions required by this subdivi- 51 sion to be included in agreements authorized by this section, the 52 commissioner of finance may, in his or her discretion, include in such 53 agreements such additional terms and conditions, not inconsistent with 54 this section, as such commissioner determines to be necessary in order 55 to properly carry out the provisions of this section. The commissioner

S. 8578 340 1 of finance may also adopt such rules and regulations as may be necessary 2 to carry out the provisions of this section. 3 c. (1) If, pursuant to the provisions of section 11-424 of this chap- 4 ter, an application for the release of property acquired by the city 5 through in rem tax foreclosure is made within the four-month period 6 specified in subdivision f of section 11-424 of this chapter, and 7 provided such application is made during the period specified in subdi- 8 vision a of this section, the following provisions of this subdivision 9 shall, at the election of the applicant, apply with respect to such 10 application and the release sought thereby. 11 (2) At the time of filing the application for release, an applicant 12 who elects to have the provisions of this subdivision apply to him or 13 her, shall pay to the city the amounts specified in paragraphs two, 14 three and four of subdivision d of section 11-424 of this chapter, for 15 this purpose, the amount specified in such paragraph two shall be deemed 16 to be the amount which would have been required to be paid thereunder 17 had this section not been in effect. Concurrent with the making of such 18 payment, the applicant shall enter into an agreement with the commis- 19 sioner of general services providing for the payment of all current 20 taxes, assessments or other legal charges on the property as they become 21 due or within the grace period provided by law, and, in addition, 22 providing for the payment of the amount specified in paragraph one of 23 subdivision d of section 11-424 of this chapter in installments, the 24 first of which shall be equal to at least twenty-five percent of such 25 amount and shall be payable upon the execution of such agreement. The 26 balance of such amount shall be payable in twelve equal quarterly 27 installments, each of which shall be paid quarterly on the first of 28 July, October, January and April. 29 (3) Pending approval by the corporation counsel of an application for 30 release as to form, timeliness and eligibility of the applicant, all 31 payments made pursuant to the preceding paragraph shall be held in 32 escrow; in the event the corporation counsel disapproves the applica- 33 tion, such payments shall be returned to the applicant, and the agree- 34 ment executed by him or her shall thereupon be cancelled. 35 (4) In the case of any agreement made and executed pursuant to such 36 paragraph two, interest on any installment due and payable thereunder 37 shall, notwithstanding the rates of interest prescribed in section 38 11-224, 11-312 or 11-313 of this title, be charged, collected and 39 received at the rate of seven percent per annum from April first, nine- 40 teen hundred seventy-eight to the date of payment of each installment. 41 Any interest accrued or accruing prior to April first, nineteen hundred 42 seventy-eight shall not be affected by the provisions of this paragraph, 43 but shall be charged, collected and received in the manner and at the 44 rates specified in section 11-224, 11-312 or 11-313 of this title. The 45 seven percent rate of interest specified in this paragraph shall be 46 applicable only if (i) there is no default in the agreement entered into 47 as provided in this subdivision, and (ii) all current taxes, assessments 48 or other legal charges are paid as they become due or within the period 49 of grace provided by law. 50 (5) No release for which application has been made pursuant to this 51 subdivision shall be granted until the final payment under the agreement 52 herein provided is received by the city. Upon receipt of such final 53 payment by the city the corporation counsel shall effect the release in 54 the manner provided in section 11-424 of this chapter. In the event of 55 any default in an agreement executed as provided in this subdivision or 56 any failure to pay current taxes, assessments or other legal charges as

S. 8578 341 1 they become due or within the grace period provided by law, such agree- 2 ment shall thereupon become void, the release process shall be termi- 3 nated, and all payments theretofore made shall be forfeited to the city. 4 (6) In addition to the terms and conditions required by this subdivi- 5 sion to be included in agreements authorized thereby, the commissioner 6 of general services may, in his or her discretion, include in such 7 agreements such additional terms and conditions, not inconsistent with 8 this subdivision, as the commissioner determines to be necessary in 9 order to properly carry out the provisions hereof. The commissioner of 10 general services may also adopt such rules and regulations as may be 11 necessary to carry out the provisions of this subdivision. 12 § 11-427 Agreements for payment of delinquent taxes and charges in 13 installments. a. During the period beginning September first, nineteen 14 hundred seventy-eight and ending December thirty-first, nineteen hundred 15 seventy-eight, the commissioner of finance, or, when so specified here- 16 inafter, the commissioner of general services, shall be authorized and 17 empowered to make and execute agreements in the circumstances and 18 subject to the terms, conditions and limitations set forth in this 19 section; provided, however, that if the commissioner of finance or, 20 where applicable, the commissioner of general services, determines in 21 his or her sole discretion that good cause exists, he or she may make 22 and execute such agreements during an additional period ending not later 23 than January thirty-first, nineteen hundred seventy-nine. 24 b. (1) (i) Whenever it shall appear that a tax lien on a parcel has 25 been due and unpaid for a period of at least six months from the date on 26 which the tax, assessment or other legal charge represented thereby 27 became a lien, the commissioner of finance may enter into an agreement 28 with the owner of such parcel or other person claiming to have an inter- 29 est therein providing for the payment of such delinquent taxes, assess- 30 ments or other legal charges and interest and penalties in installments, 31 the first of which shall be equal to at least fifteen percent of such 32 arrears and shall be payable upon the execution of such agreement. Each 33 remaining installment shall be equal to at least an amount produced by 34 dividing the balance of such arrears by a factor determined by multiply- 35 ing the number of quarters of such arrears by two. 36 (ii) In no event, however, shall the factor referred to in subpara- 37 graph (i) of this paragraph be in excess of thirty-two. Each such 38 remaining installment shall be payable quarterly on the first of July, 39 October, January and April. 40 (2) If an agreement authorized by paragraph one of this subdivision is 41 executed prior to the time the commissioner of finance files in the 42 office of the county clerk a list of delinquent taxes covering the city 43 or portion of the city in which the subject parcel is located, such 44 parcel shall be excluded from such list of delinquent taxes, provided, 45 at the time such list is filed, there is no default in the agreement and 46 all current taxes, assessments or other legal charges were paid as they 47 became due or within the period of grace provided by law. In the event 48 of any default in the agreement or any failure to make timely payment of 49 any current item, the parcel shall, if then delinquent for the applica- 50 ble period specified in section 11-404 of this chapter, be eligible for 51 inclusion in any list of delinquent taxes thereafter filed. 52 (3) If an in rem foreclosure action has been commenced against any 53 parcel prior to September first, nineteen hundred seventy-eight, the 54 commissioner of finance may, notwithstanding the provisions of paragraph 55 three of subdivision a of section 11-413 of this chapter, enter into an 56 agreement authorized and described in the foregoing provisions of this

S. 8578 342 1 section with respect to such parcel. However, if such an agreement is 2 entered into subsequent to the last date for redemption specified in 3 subdivision a of section 11-407 of this chapter, there shall be paid to 4 the commissioner of finance at the time said agreement is executed an 5 amount equal to the penalty which would have been payable under subdivi- 6 sion c of section 11-407 of this chapter had the person executing the 7 agreement made a late redemption payment. Such amount shall be in addi- 8 tion to any installment payments required to be made under the agreement 9 and shall not be credited against any such installment payments. Any 10 parcel which is the subject of an agreement made pursuant to this para- 11 graph may, prior to final judgment, be withdrawn from the action, 12 provided there has been no default in the agreement, and provided 13 further that all current taxes, assessments or other legal charges are 14 paid when they become due or within the period of grace provided by law. 15 Such withdrawal shall be effected by the commissioner of finance in the 16 manner provided in section 11-413 of this chapter. 17 (4) Any person who, prior to September first, nineteen hundred seven- 18 ty-eight, has made, executed and filed with the commissioner of finance 19 an agreement pursuant to the provisions of paragraph three of subdivi- 20 sion a of section 11-413 of this chapter, shall be permitted to make 21 application to the commissioner of finance for the purpose of having 22 such agreement cancelled and a new agreement executed as hereinabove 23 provided. 24 If an agreement executed prior to September first, nineteen hundred 25 seventy-eight is not cancelled as herein provided, any installments due 26 and payable under such agreement on or after February first, nineteen 27 hundred seventy-nine shall be subject to interest at the rate specified 28 in paragraph six of this subdivision, but only if, as of February first, 29 nineteen hundred seventy-nine, there is no default in the agreement and 30 all current taxes, assessments or other legal charges have been paid 31 within the time allowed by law. Such rate of interest shall be calcu- 32 lated in the manner and shall be subject to all the conditions provided 33 in paragraph six of this subdivision. 34 (5) Notwithstanding the preceding paragraphs of this subdivision, no 35 owner of, or other person claiming to have an interest in, any parcel 36 shall be eligible to enter into an agreement authorized by such para- 37 graphs where such parcel was included in an in rem foreclosure action 38 but was severed therefrom pursuant to the judgment of foreclosure in 39 such action because an answer was still pending as to such parcel. The 40 commissioner of finance may, however, on notice to the corporation coun- 41 sel, enter into an agreement with such owner or other interested person 42 providing for the payment of all current taxes, assessments or other 43 legal charges on the parcel as they become due or within the grace peri- 44 od provided by law, and, in addition, providing for payment of the 45 amount of all delinquent taxes, assessments or other legal charges and 46 interest due as of the date the agreement is executed in installments, 47 the first of which shall be equal to at least twenty-five percent of 48 such amount and shall be payable upon the execution of such agreement, 49 and the balance of which shall be payable in twelve equal quarterly 50 installments, each of which shall be paid on the first of July, October, 51 January and April. In addition, there shall be paid to the commissioner 52 of finance at the time such agreement is executed a penalty equal to 53 five percent of the amount of the delinquent taxes, assessments or other 54 legal charges and interest due as of the date of the agreement, which 55 penalty shall not exceed five hundred dollars. Any installments due and 56 payable on or after February first, nineteen hundred seventy-nine under

S. 8578 343 1 an agreement described in this paragraph shall be subject to interest at 2 the rate specified in paragraph six of this subdivision, but only if, as 3 of February first, nineteen hundred seventy-nine, there is no default in 4 the agreement and all current taxes, assessments or other legal charges 5 have been paid within the time allowed by law. Such rate of interest 6 shall be calculated in the manner and shall be subject to all the condi- 7 tions provided in paragraph six of this subdivision. 8 Upon receipt of the final payment due under an agreement executed 9 pursuant to this paragraph, the commissioner of finance shall discontin- 10 ue the in rem action pending with respect to the parcel which is the 11 subject of such agreement, and shall cancel the lis pendens pertaining 12 thereto by issuing a certificate of withdrawal pursuant to section 13 11-413 of this chapter. In the event of any default in such agreement or 14 any failure to pay current taxes, assessments or other legal charges as 15 they become due or within the grace period provided by law, such agree- 16 ment and the answer which was the basis for the severance of the subject 17 parcel from the in rem action shall both be deemed null and void and the 18 city shall be entitled to acquire title to such parcel by entry of an 19 appropriate supplemental judgment of foreclosure in such in rem action 20 without further notice to the answering party. 21 (6) When an agreement has been entered into pursuant to this subdivi- 22 sion, the commissioner of finance shall, notwithstanding the rates of 23 interest prescribed in section 11-224, 11-312 or 11-313 of this title, 24 charge, collect and receive interest on the arrears due and payable 25 under such agreement, to be calculated at the rate of seven percent per 26 annum from February first, nineteen hundred seventy-nine to the date of 27 payment of each installment. Any interest accrued or accruing prior to 28 February first, nineteen hundred seventy-nine shall not be affected by 29 the provisions of this paragraph, but shall be charged, collected and 30 received in the manner and at the rates specified in section 11-224, 31 11-312 or 11-313 of this title. The seven percent rate of interest spec- 32 ified in this paragraph shall be applicable only if (i) there is no 33 default in the agreement entered into as provided in this section, and 34 (ii) all current taxes, assessments or other legal charges are paid as 35 they become due or within the period of grace provided by law. In the 36 event of any default or failure to make timely payment of any current 37 item, the seven percent rate of interest specified in this paragraph 38 shall thereupon cease to be applicable and the commissioner of finance 39 shall thereafter charge, collect and receive interest in the manner and 40 at the rates otherwise specified in this chapter. 41 (7) In addition to the terms and conditions required by this subdivi- 42 sion to be included in agreements authorized by this section, the 43 commissioner of finance may, in his or her discretion, include in such 44 agreements such additional terms and conditions, not inconsistent with 45 this section, as the commissioner determines to be necessary in order to 46 properly carry out the provisions of this section. The commissioner may 47 also adopt such rules and regulations as may be necessary to carry out 48 the provisions of this section. 49 c. (1) If, pursuant to the provisions of section 11-424 of this chap- 50 ter, an application for the release of property acquired by the city 51 through in rem tax foreclosure has been filed within the four-month 52 period specified in subdivision f of such section, and the sixty-day 53 period for payment referred to in such subdivision has not expired prior 54 to the commencement of the period specified in subdivision a of this 55 section, the provisions of this subdivision shall, at the election of 56 the applicant, apply with respect to such application and the release

S. 8578 344 1 sought thereby, provided notice of such election is given to the commis- 2 sioner of general services during the period specified in subdivision a 3 of this section, but in no event later than the last day of the sixty- 4 day period referred to in subdivision f of section 11-424 of this chap- 5 ter. 6 (2) An applicant who elects to have the provisions of this subdivision 7 apply to him or her, shall, at the time such applicant notifies the 8 commissioner of general services of his or her election, pay to the city 9 the amounts specified in paragraphs two, three and four of subdivision d 10 of section 11-424 of this chapter; for this purpose, the amount speci- 11 fied in paragraph two thereof shall be deemed to be the amount which 12 would have been required to be paid thereunder had this section not been 13 in effect. Concurrent with the making of such payment, the applicant 14 shall enter into an agreement with the commissioner of general services 15 providing for the payment of all current taxes, assessments or other 16 legal charges on the property as they become due or within the grace 17 period provided by law, and, in addition, providing for the payment of 18 the amount specified in paragraph one of subdivision d of section 11-424 19 of this chapter in installments, the first of which shall be equal to at 20 least twenty-five percent of such amount and shall be payable upon the 21 execution of such agreement. The balance of such amount shall be payable 22 in twelve equal quarterly installments, each of which shall be paid 23 quarterly on the first of July, October, January and April. 24 (3) Pending approval by the corporation counsel of an application for 25 release as to form, timeliness and eligibility of the applicant, all 26 payments made pursuant to paragraph three of this subdivision shall be 27 held in escrow; in the event the corporation counsel disapproves the 28 application, such payments shall be returned to the applicant, and the 29 agreement executed by him or her shall thereupon be cancelled. 30 (4) In the case of any agreement made and executed pursuant to para- 31 graph two of this subdivision, interest on any installment due and paya- 32 ble thereunder shall, notwithstanding the rates of interest prescribed 33 in section 11-224, 11-312 or 11-313 of this title, be charged, collected 34 and received at the rate of seven percent per annum from February first, 35 nineteen hundred seventy-nine to the date of payment of each install- 36 ment. Any interest accrued or accruing prior to February first, nineteen 37 hundred seventy-nine shall not be affected by the provisions of this 38 paragraph, but shall be charged, collected and received in the manner 39 and at the rates specified in section 11-224, 11-312 or 11-313 of this 40 title. The seven percent rate of interest specified in this paragraph 41 shall be applicable only if (i) there is no default in the agreement 42 entered into as provided in this subdivision, and (ii) all current 43 taxes, assessments or other legal charges are paid as they become due or 44 within the period of grace provided by law. 45 (5) No release for which application has been made pursuant to subdi- 46 vision f of section 11-424 of this chapter shall be granted until the 47 final payment under the agreement herein provided is received by the 48 city. Upon receipt of such final payment by the city the corporation 49 counsel shall effect the release in the manner provided in section 50 11-424 of this chapter. In the event of any default in an agreement 51 executed as provided in this subdivision or any failure to pay current 52 taxes, assessments or other legal charges as they become due or within 53 the grace period provided by law, such agreement shall thereupon become 54 void, the release process shall be terminated and all payments thereto- 55 fore made shall be forfeited to the city.

S. 8578 345 1 (6) In addition to the terms and conditions required by this subdivi- 2 sion to be included in agreements authorized thereby, the commissioner 3 of general services may, in his or her discretion, include in such 4 agreements such additional terms and conditions, not inconsistent with 5 this subdivision, as the commissioner determines to be necessary in 6 order to properly carry out the provisions hereof. The commissioner of 7 general services may also adopt such rules and regulations as may be 8 necessary to carry out the provisions of this subdivision. 9 § 11-428 Disposition of proceeds of sales of properties acquired by 10 city through tax enforcement foreclosure proceedings. The proceeds of 11 the sale of real property acquired through tax enforcement foreclosure 12 proceedings, or by deed in lieu thereof, including subsequent receipts 13 in diminution of purchase money mortgages accepted at the time of sale, 14 shall be applied as follows: 15 a. The amount of the unpaid real estate taxes accrued against such 16 property from the first of January or the first of July, whichever first 17 immediately precedes the date on which title vested in the city to the 18 date of conveyance of title by the city, without interest or penalties 19 thereon, shall be credited to the tax deficiency account. 20 b. The balance, if any, remaining after deduction of the amount speci- 21 fied in paragraph a hereof, shall be paid into the funds hereinafter 22 specified in the following order: 23 1. A sum equal to the amount of the unpaid assessments for local 24 improvements accrued against such property at the date of commencement 25 of the foreclosure proceeding and up to the date of conveyance of title 26 by the city, without interest or penalties thereon, shall be paid into 27 the appropriate assessment funds. 28 2. A sum equal to the amount of unpaid sewer rents, including interest 29 and penalties thereon, accrued against such property at the date of 30 commencement of the foreclosure proceedings and up to the date of 31 conveyance of title by the city shall be paid into the sewer fund. 32 3. The amount of the brokerage fee and other expenses expended by the 33 city in connection with such sale shall be paid into the fund or code to 34 which such fee was charged. 35 4. The balance of such proceeds, if any, and the interest on any 36 purchase money mortgage accepted by the city at the time of such sale 37 shall be paid into the general fund. In the event that any part of such 38 balance is represented by bonds and mortgages, such bonds and mortgages 39 may be deposited in the tax appropriation and general fund stabilization 40 reserve fund and a sum equal to the amount of the cash represented by 41 such bonds and mortgages shall in such event be transferred from the tax 42 appropriation and general fund stabilization reserve fund to the general 43 fund. 44 CHAPTER 5 45 CITY UNINCORPORATED BUSINESS INCOME TAX 46 § 11-501 Meaning of terms. (a) General. Unless a different meaning is 47 clearly required, any term used in this chapter shall have the same 48 meaning as when used in a comparable context in the laws of the United 49 States relating to federal income taxes, and any reference in this chap- 50 ter to the laws of the United States shall mean the provisions of the 51 internal revenue code of nineteen hundred fifty-four, and amendments 52 thereto, and other provisions of the laws of the United States relating 53 to federal income taxes, as the same are included in this chapter as an 54 appendix or as included by reference to an appendix of another chapter

S. 8578 346 1 enacted by the same law as enacts this chapter. (The quotation of the 2 aforesaid laws of the United States is intended to make them a part of 3 this chapter and to avoid constitutional uncertainties which might 4 result if such laws were merely incorporated by reference. The quotation 5 of a provision of the federal internal revenue code or of any other law 6 of the United States shall not necessarily mean that it is applicable to 7 or has relevance to this chapter.) 8 (b) "State", "this state" or "the state" when used in this chapter 9 shall mean the state of New York. 10 (c) "Local income taxes", when used in this chapter shall mean an 11 income tax imposed by a political subdivision of a state. 12 (d) "Commissioner of finance" when used in this chapter shall mean the 13 commissioner of finance of the city. 14 (e) "Department of finance" when used in this chapter shall mean the 15 department of finance of the city. 16 (f) "Tax appeals tribunal" when used in this chapter shall mean the 17 tax appeals tribunal established by section one hundred sixty-eight of 18 the charter of the preceding municipality as it existed January first, 19 two thousand nine. 20 (g) "Unincorporated business entire net income" when used in this 21 chapter shall mean the excess of the unincorporated business gross 22 income of an unincorporated business over its unincorporated business 23 deductions. 24 (h) "Investment capital" when used in this chapter shall mean invest- 25 ments of the unincorporated business in stocks, bonds and other securi- 26 ties, corporate and governmental (excluding governmental stocks, bonds 27 and other securities the interest or dividends from which are fully 28 exempt from tax under this chapter, other than any such governmental 29 stock, bond or other security which is sold or otherwise disposed of 30 during the taxable year in a transaction which results in a gain or loss 31 which is included in computing unincorporated business entire net income 32 for the taxable year), not held for sale to customers in the regular 33 course of business, provided, however, that in the discretion of the 34 commissioner of finance, there shall be deducted from investment capital 35 any liabilities of the unincorporated business which are directly or 36 indirectly attributable to investment capital. 37 (i) "Investment income" when used in this chapter shall mean income, 38 gains and losses from investment capital, to the extent included in 39 computing unincorporated business entire net income, less, in the 40 discretion of the commissioner of finance, any deductions allowable in 41 computing unincorporated business entire net income which are directly 42 or indirectly attributable to investment capital or investment income, 43 provided, however, that in no case shall investment income exceed unin- 44 corporated business entire net income. 45 (j) "Business capital" when used in this chapter shall mean all assets 46 of the unincorporated business other than investment capital, less 47 liabilities of the unincorporated business not deducted from investment 48 capital, except that cash on hand and on deposit shall be treated as 49 investment capital or as business capital as the taxpayer may elect. 50 (k) "Business income" when used in this chapter shall mean unincorpo- 51 rated business entire net income minus investment income. 52 (l) "Dealer" when used in this chapter shall mean an individual or 53 unincorporated entity that (A) holds or disposes of property that is 54 stock in trade of the taxpayer, inventory or is otherwise held for sale 55 to customers in the ordinary course of the taxpayer's trade or business, 56 or (B) regularly offers to enter into, assume, offset, assign or other-

S. 8578 347 1 wise terminate positions in property with customers in the ordinary 2 course of the taxpayer's trade or business, provided, however, an indi- 3 vidual or unincorporated entity shall not be treated as a dealer based 4 solely on such individual's or entity's ownership of an interest in an 5 entity that is a dealer, and provided, further, that an unincorporated 6 entity shall not be treated as a dealer based solely on the ownership by 7 a dealer of an interest in that unincorporated entity. 8 (m) "Unincorporated entity" when used in this chapter shall include an 9 entity classified as a partnership for federal income tax purposes 10 regardless of whether the entity is formed as a corporation, joint-stock 11 company, joint-stock association, body corporate or body politic or 12 whether the entity is organized under a federal or state statute, or 13 under a statute of a federally recognized Indian tribe, or under a stat- 14 ute of a country other than the United States that describes or refers 15 to the entity as incorporated. 16 § 11-502 Unincorporated business defined. (a) General. An unincorpo- 17 rated business means any trade, business, profession or occupation 18 conducted, engaged in or being liquidated by an individual or unincorpo- 19 rated entity, including a partnership, a fiduciary, a corporation in 20 liquidation or an unincorporated entity that has made the election 21 permitted under paragraph (b) of subdivision one of section 11-602 of 22 this title (but only for the period during which such election is in 23 effect), but not including any entity subject to tax under chapter six 24 of this title and not including any entity doing an insurance business 25 as a member of the New York insurance exchange described in paragraph 26 one of subsection (b) of section six thousand two hundred one of the 27 insurance law. Unincorporated businesses subject to tax under a local 28 law of the city imposing a tax on utilities shall not be subject to tax 29 under this chapter; provided, however, that unincorporated businesses, 30 other than (1) utility businesses subject to the supervision of the 31 state department of public service and (2) for taxable years beginning 32 on or after August first, two thousand two, utilities as defined in 33 subdivision six of section 11-1101 of this title, which are subject to 34 tax under a local law of the city imposing a tax on vendors of utility 35 services shall be subject to tax under this chapter on that percentage 36 of their entire net income allocable to the city under section 11-508 of 37 this chapter which their receipts other than those taxable under such 38 local law taxing vendors of utility services is of their total receipts. 39 If an individual or an unincorporated entity carries on wholly or partly 40 in the city two or more unincorporated businesses, all such businesses 41 shall be treated as one unincorporated business for the purposes of this 42 chapter. For purposes of this chapter, an unincorporated entity shall be 43 treated as carrying on any trade, business, profession or occupation 44 carried on in whole or in part in the city by any other unincorporated 45 entity in which the first unincorporated entity owns an interest, and 46 the ownership by an unincorporated entity of an interest in another 47 unincorporated entity that is not carrying on any trade, business, 48 profession, or occupation in whole or in part in the city shall not be 49 deemed the conduct of an unincorporated business by the first unincorpo- 50 rated entity. Notwithstanding anything to the contrary in the preceding 51 sentence, for taxable years beginning on or after August first, two 52 thousand two, an unincorporated business that is a partner in a partner- 53 ship subject to tax under a local law of the city imposing a tax on 54 utilities, as defined in subdivision six of section 11-1101 of this 55 title, shall not be considered to be carrying on the trade, business, 56 profession or occupation carried on by such partnership.

S. 8578 348 1 (b) Services as employee. The performance of services by an individual 2 as an employee or as an officer or director of a corporation, society, 3 association, or political entity, or as a fiduciary, shall not be deemed 4 an unincorporated business, unless such services constitute part of a 5 business regularly carried on by such individual. 6 (c) Purchase and sale for own account. (1) Definitions. (A) Property. 7 For purposes of this subdivision, property shall mean real and personal 8 property, including but not limited to, property qualifying as invest- 9 ment capital within the meaning of subdivision (h) of section 11-501 of 10 this chapter, other stocks, notes, bonds, debentures, or other evidences 11 of indebtedness, interest rate, currency, or equity notional principal 12 contracts, foreign currencies, interests in, or derivative financial 13 instruments (including options, forward or futures contracts, short 14 positions, and similar financial instruments) in any property described 15 above, and any commodity traded on or subject to the rules of a board of 16 trade or commodity exchange, provided, however, property shall not 17 include: (i) debt instruments issued by the taxpayer; (ii) accounts 18 receivable held by a factor; (iii) property held as stock in trade, 19 inventory or otherwise held for sale to customers in the ordinary course 20 of the taxpayer's trade or business; (iv) debt instruments acquired in 21 the ordinary course of the taxpayer's trade or business for funds 22 loaned, services rendered or for the sale, rental or other transfer of 23 property by the taxpayer; (v) interests in unincorporated entities; or 24 (vi) positions in property described above entered into, assumed, 25 offset, assigned or terminated by a dealer with respect to such posi- 26 tions in property. 27 (B) Investor. For purposes of this subdivision, a taxpayer shall be 28 treated as acquiring, holding or disposing of an interest in an unincor- 29 porated entity as an investor if: (i) the unincorporated entity meets 30 the requirements of subparagraph (B) of paragraph four of this subdivi- 31 sion and the taxpayer does not receive a distributive share of such 32 entity's income, gain, loss, deduction, credit and basis from a business 33 carried on in whole or in part in the city that is materially greater 34 than its distributive share of any other item of income, gain, loss 35 deduction, credit or basis of such entity; or (ii) with respect to any 36 other unincorporated entity, the taxpayer is neither a general partner 37 nor authorized under the entity's governing instrument to manage or 38 participate in, nor managing, nor participating in, the day-to-day busi- 39 ness of the unincorporated entity. 40 (2) An individual or other unincorporated entity, except a dealer as 41 defined in subdivision (1) of section 11-501 of this chapter, shall not 42 be deemed engaged in an unincorporated business solely by reason of (A) 43 the purchase, holding and sale for his, her or its own account of prop- 44 erty, as defined in paragraph one of this subdivision, or the entry 45 into, assumption, offset, assignment, or other termination of a position 46 in any property so defined, or both, (B) the acquisition, holding or 47 disposition, other than in the ordinary course of a trade or business, 48 of interests in unincorporated entities engaged solely in activities 49 described in subparagraph (A), (B) or (C) of this paragraph, or (C) any 50 combination of the activities described in subparagraphs (A) and (B) of 51 this paragraph and any other activity not otherwise constituting the 52 conduct of an unincorporated business subject to the tax imposed by this 53 chapter, but this paragraph shall not apply if the unincorporated entity 54 is taxable as a corporation for federal income tax purposes. 55 (3) Notwithstanding anything to the contrary, the receipt by an indi- 56 vidual or other unincorporated entity of twenty-five thousand dollars or

S. 8578 349 1 less of gross receipts during the taxable year (determined without 2 regard to any deductions) from an unincorporated business wholly or 3 partly carried on within the city by such individual or unincorporated 4 entity shall not cause such individual or other unincorporated entity to 5 be treated as not engaged solely in the activities described in subpara- 6 graph (A), (B) or (C) of paragraph two of this subdivision. 7 (4) (A) If a taxpayer that is an unincorporated entity is primarily 8 engaged in (i) activities described in subparagraph (A), (B) or (C) of 9 paragraph two of this subdivision, or (ii) the acquisition, holding or 10 disposition, other than in the ordinary course of a trade or business, 11 of interests as an investor in unincorporated entities carrying on any 12 unincorporated business in whole or in part in the city, or both, the 13 activities described in subparagraph (A), (B), or (C) of paragraph two 14 of this subdivision carried on by the taxpayer or by any unincorporated 15 entity primarily engaged in the activities described in clause (i) or 16 (ii) of this subparagraph in which the taxpayer owns an interest shall 17 not be deemed an unincorporated business carried on by the taxpayer. 18 (B) For purposes of subparagraph (A) of this paragraph, an unincorpo- 19 rated entity will be treated as primarily engaged in activities 20 described in clause (i) or (ii) of subparagraph (A) of this paragraph, 21 or both, if at least ninety percent of the value of its total assets is 22 represented by assets described in subparagraph (C) of this paragraph. 23 (C) For purposes of subparagraph (B) of this paragraph, assets 24 described in this subparagraph include: 25 (i) property as defined in paragraph one of this subdivision; 26 (ii) interests in unincorporated entities not carrying on any unincor- 27 porated business in whole or in part in the city; and 28 (iii) interests in unincorporated entities carrying on an unincorpo- 29 rated business in whole or in part in the city held by the taxpayer as 30 an investor, as defined in paragraph one of this subdivision. 31 (D) For purposes of determining whether a taxpayer meets the require- 32 ments of subparagraph (B) of this paragraph, the value of assets 33 described in subparagraph (C) of this paragraph shall be the average 34 monthly gross value of the assets of the taxpayer. For purposes of this 35 paragraph, the value of assets of the taxpayer that consist of real 36 property or marketable securities shall be the fair market value thereof 37 and the value of assets other than real property or marketable securi- 38 ties shall be the value thereof shown on the books and records of the 39 taxpayer in accordance with generally accepted accounting principles. In 40 case it shall appear to the commissioner of finance that the use of 41 gross value in determining whether the requirements of subparagraph (B) 42 of this paragraph are met, improperly or inaccurately reflects the 43 taxpayer's primary activities, the commissioner of finance is authorized 44 in his or her discretion and in such manner as he or she may determine, 45 to reduce the gross value of the taxpayer's assets by liabilities 46 attributable thereto or to eliminate assets, so as to properly and accu- 47 rately reflect the taxpayer's primary activities. 48 (d) Holding, leasing or managing real property. An owner of real prop- 49 erty, a lessee or a fiduciary shall not be deemed engaged in an unincor- 50 porated business solely by reason of holding, leasing or managing real 51 property. If an owner of real property or lessee or fiduciary (except a 52 dealer holding real property primarily for sale to customers in the 53 ordinary course of his or her trade or business) who is holding, leasing 54 or managing real property is also carrying on an unincorporated business 55 in whole or in part in the city, whether or not such unincorporated 56 business is carried on at or is connected with such real property, such

S. 8578 350 1 holding, leasing or managing of real property shall not be deemed an 2 unincorporated business if, and only to the extent that, such real prop- 3 erty is held, leased or managed for the purpose of producing rental 4 income from such real property or gain upon the sale or other disposi- 5 tion of such real property. For purposes of this subdivision, the 6 conduct by such owner, lessee or fiduciary, at such real property, of a 7 trade, business, profession or occupation, including, but not limited 8 to, a garage, restaurant, laundry or health club, shall be deemed to be 9 an incident to the holding, leasing or managing of such real property, 10 and shall not be deemed the conduct of an unincorporated business, if 11 such trade, business, profession or occupation is conducted solely for 12 the benefit of tenants at such real property, as an incidental service 13 to such tenants, and is not open or available to the general public, 14 provided, however, if any such owner, lessee or fiduciary operates a 15 garage, parking lot or other similar facility at such real property that 16 is open or available to the general public, the provision by any such 17 owner, lessee or fiduciary of the service of parking, garaging or stor- 18 ing of motor vehicles on a monthly or longer term basis shall be deemed 19 to be an incident to the holding, leasing or managing of such real prop- 20 erty, and shall not be deemed the conduct of an unincorporated business 21 if, and only to the extent that, such monthly or longer term parking, 22 garaging or storing service is provided to tenants at such real property 23 as an incidental service to such tenants. If an owner, lessee or fiduci- 24 ary holding, leasing or managing real property operates at such real 25 property a garage, parking lot or other similar facility that is open or 26 available to the public, each such owner, lessee or fiduciary shall 27 file, together with and as a part of the returns required under section 28 11-514 of this chapter, a report or schedule for each such garage, park- 29 ing lot or other similar facility, or in the discretion of the commis- 30 sioner, make a separate entry on such returns, identifying the specific 31 location and address, license number and licensed capacity of each such 32 garage, parking lot or other similar facility, and shall include such 33 additional information, data and other matters relating to the provision 34 of such monthly or longer term parking, garaging or storing service to 35 tenants as shall be prescribed by the commissioner of finance. If the 36 separate information required to be reported by any owner, lessee or 37 fiduciary holding, leasing or managing real property for any garage, 38 parking lot or other similar facility at such real property that is open 39 or available to the public is not contained in the returns required 40 under section 11-514 of this chapter, or in any amended returns, in any 41 material respect, the provision of parking, garaging or storing service 42 to tenants at such real property shall be deemed the conduct of an unin- 43 corporated business and not incident to the holding, leasing or managing 44 of such real property. 45 (e) Sales representative. An individual, other than one who maintains 46 an office or who employs one or more assistants or who otherwise regu- 47 larly carries on a business, shall not be deemed engaged in an unincor- 48 porated business solely by reason of selling goods, wares, merchandise 49 or insurance for more than one enterprise. For purposes of this subdi- 50 vision, space utilized solely for the display of merchandise and/or for 51 the maintenance and storage of records normally used in the course of 52 business shall not be deemed an office, and the employment of clerical 53 and secretarial assistance shall not be deemed the employment of assist- 54 ants. 55 (f) Exempt trusts and organizations. A trust or other unincorporated 56 organization which by reason of its purposes or activities is exempt

S. 8578 351 1 from federal income tax shall not be deemed an unincorporated business 2 regardless of whether subject to federal income tax on unrelated busi- 3 ness taxable income. 4 § 11-503 Imposition of tax. (a) General. A tax at the rate of four 5 percent is hereby imposed for each taxable year, beginning with taxable 6 years ending after January first, nineteen hundred sixty-six, on the 7 unincorporated business taxable income of every unincorporated business 8 wholly or partly carried on within the city. This tax shall be in addi- 9 tion to any other taxes imposed. 10 (b) Credit against tax. (1) For each taxable year beginning after 11 nineteen hundred eighty-six but before nineteen hundred ninety-six: 12 (A) if the tax computed under subdivision (a) of this section is six 13 hundred dollars or less, a credit shall be allowed for the entire amount 14 of such tax; 15 (B) if the tax computed under subdivision (a) of this section exceeds 16 six hundred dollars but is less than eight hundred dollars, a credit 17 shall be allowed in the amount determined by multiplying such tax by a 18 fraction the numerator of which is eight hundred dollars minus the 19 amount of such tax and the denominator of which is two hundred dollars; 20 or 21 (C) if the tax computed under subdivision (a) of this section is eight 22 hundred dollars or more, no credit shall be allowed. 23 (2) For each taxable year beginning in nineteen hundred ninety-six: 24 (A) if the tax computed under subdivision (a) of this section is eight 25 hundred dollars or less, a credit shall be allowed for the entire amount 26 of such tax; 27 (B) if the tax computed under subdivision (a) of this section exceeds 28 eight hundred dollars but is less than one thousand dollars, a credit 29 shall be allowed in the amount determined by multiplying such tax by a 30 fraction the numerator of which is one thousand dollars minus the amount 31 of such tax and the denominator of which is two hundred dollars; or 32 (C) if the tax computed under subdivision (a) of this section is one 33 thousand dollars or more, no credit shall be allowed. 34 (3) For each taxable year beginning after nineteen hundred ninety-six 35 but before two thousand nine: 36 (A) if the tax computed under subdivision (a) of this section is one 37 thousand eight hundred dollars or less, a credit shall be allowed for 38 the entire amount of such tax; 39 (B) if the tax computed under subdivision (a) of this section exceeds 40 one thousand eight hundred dollars but is less than three thousand two 41 hundred dollars, a credit shall be allowed in the amount determined by 42 multiplying such tax by a fraction the numerator of which is three thou- 43 sand two hundred dollars minus the amount of such tax and the denomina- 44 tor of which is one thousand four hundred dollars; or 45 (C) if the tax computed under subdivision (a) of this section is three 46 thousand two hundred dollars or more, no credit shall be allowed. 47 (3-a) For each taxable year beginning after two thousand eight: 48 (A) if the tax computed under subdivision (a) of this section is three 49 thousand four hundred dollars or less, a credit shall be allowed for the 50 entire amount of such tax; 51 (B) if the tax computed under subdivision (a) of this section exceeds 52 three thousand four hundred dollars but is less than five thousand four 53 hundred dollars, a credit shall be allowed in the amount determined by 54 multiplying such tax by a fraction the numerator of which is five thou- 55 sand four hundred dollars minus the amount of such tax and the denomina- 56 tor of which is two thousand dollars; or

S. 8578 352 1 (C) if the tax computed under subdivision (a) of this section is five 2 thousand four hundred dollars or more, no credit shall be allowed. 3 (4) If separate partnerships, joint ventures or other unincorporated 4 entities have substantially the same partners or members, each of such 5 partners or members has substantially the same interest in each of such 6 partnerships, joint ventures or other unincorporated entities, and such 7 partnerships, joint ventures or other unincorporated entities are 8 engaged in substantially the same business or businesses or in substan- 9 tially related businesses, all of such partnerships, joint ventures or 10 other unincorporated entities shall be treated as one unincorporated 11 business for purposes of this subdivision. The provisions of this para- 12 graph shall not be construed to limit or affect the meaning or applica- 13 tion of any other provision of this chapter. 14 (5) Notwithstanding anything to the contrary, the credit allowable 15 under this subdivision shall be taken prior to any other credit allowed 16 by this section. 17 (c) Credit relating to stock transfer tax. (1) In addition to any 18 other credit permitted under this section, a taxpayer shall be allowed a 19 credit, to be credited or refunded in the manner hereinafter provided in 20 this subdivision, against the tax imposed by this chapter after the 21 allowance of any other credit under this section. The amount of such 22 credit shall be fifty percent of the tax incurred in market making tran- 23 sactions under the provisions of article twelve of the tax law on such 24 transactions subject to such tax occurring on and after August first, 25 nineteen hundred seventy-six and paid by such taxpayer, except when such 26 tax shall have been paid pursuant to section two hundred seventy-nine-a 27 of the tax law. 28 (2) For purposes of this subdivision: 29 a. the term "taxpayer" shall mean any unincorporated business subject 30 to tax under this chapter registered with the United States securities 31 and exchange commission in accordance with subsection (b) of section 32 fifteen of the securities exchange act of nineteen hundred thirty-four, 33 as amended, and acting as a dealer in a transaction described in subpar- 34 agraph b of this paragraph, and 35 b. the term "market making transaction" shall mean any transaction 36 involving a sale, including a short sale, by a dealer of shares or 37 certificates subject to the tax imposed by article twelve of the tax 38 law, provided such shares or certificates are sold: 39 (i) as stock in trade or inventory or as property held for sale in the 40 ordinary course of such dealer's trade or business including transfers 41 which are part of an underwriting, 42 (ii) in (a) a bona fide arbitrage transaction; (b) a bona fide hedge 43 transaction involving a long or short position in any equity security 44 and a long or short position in a security entitling the holder to 45 acquire or sell such equity security; or (c) a risk arbitrage trans- 46 action in connection with a merger, acquisition, tender offer, recap- 47 italization, reorganization, or similar transaction, or 48 (iii) to offset a transaction made in error. 49 Provided, however, that, except as to subclause (c) of clause (ii) of 50 subparagraph b of this paragraph, the term "market making transaction" 51 shall not include any sale of shares or certificates identified in such 52 dealer's records as a security held for investment within the meaning of 53 section twelve hundred thirty-six of the internal revenue code. 54 (3) The credit allowed under this subdivision for any taxable year 55 shall be deemed to be an overpayment of tax by the taxpayer to be cred- 56 ited or refunded in accordance with the provisions of section 11-526 of

S. 8578 353 1 this chapter, except as otherwise provided in subdivision (g) of 2 sections 11-512 and 11-514 of this chapter; provided, however, that the 3 provisions of this chapter notwithstanding, the amount to be refunded 4 pursuant to this subdivision shall not be paid prior to the first day of 5 the eighth month following the close of the taxable year, and the 6 provisions of subdivision (c) of section 11-528 of this chapter notwith- 7 standing, interest shall be allowed and paid on the overpayment of the 8 credit under this subdivision from the first day of the eleventh month 9 following the close of the taxable year, or three months after a claim 10 for the credit or refund provided for in this subdivision has been 11 filed, whichever is later. 12 (4) Provided, however, that the credit provided under this subdivi- 13 sion shall be allowed only to the extent that the amount of credit 14 allowable with respect to market making transactions under the 15 provisions of this subdivision (determined without regard to the 16 provisions of this paragraph) exceeds fifty percent of all rebates 17 (provided for under the provisions of section two hundred eighty-a of 18 article twelve of the tax law) allowed for such taxes incurred in the 19 same market making transactions with respect to which the credit is 20 determined. No credit shall be allowed under this subdivision with 21 respect to any tax incurred in market making transactions occurring on 22 or after October first, nineteen hundred eighty-one. 23 (d) Credit relating to certain sales and compensating use taxes. (1) 24 In addition to the credits allowed by subdivisions (b) and (c) of this 25 section, a taxpayer shall be allowed a credit against the tax imposed by 26 this chapter to be credited or refunded in the manner hereinafter 27 provided in this section. The amount of such credit shall be the excess 28 of (A) the amount of sales and compensating use taxes imposed by section 29 eleven hundred seven of the tax law during the taxpayer's taxable year 30 which became legally due on or after and was paid on or after July 31 first, nineteen hundred seventy-seven, less any credit or refund of such 32 taxes, with respect to the purchase or use by the taxpayer of machinery 33 or equipment for use or consumption directly and predominantly in the 34 production of tangible personal property, gas, electricity, refriger- 35 ation or steam for sale, by manufacturing, processing, generating, 36 assembling, refining, mining or extracting, or telephone central office 37 equipment or station apparatus or comparable telegraph equipment for use 38 directly and predominantly in receiving at destination or initiating and 39 switching telephone or telegraph communication, but not including parts 40 with a useful life of one year or less or tools or supplies used in 41 connection with such machinery, equipment or apparatus over (B) the 42 amount of any credit for such sales and compensating use taxes allowed 43 or allowable against the taxes imposed by subchapter two of chapter six 44 of this title, for any periods embraced within the taxable year of the 45 taxpayer under this chapter. 46 (2) The credit allowed under this section for any taxable year shall 47 be deemed to be an overpayment of tax by the taxpayer to be credited or 48 refunded, without interest, in accordance with the provisions of section 49 11-526 of this chapter. 50 (3) Where the taxpayer receives a refund or credit of any tax imposed 51 under section eleven hundred seven of the tax law for which the taxpayer 52 had claimed a credit under the provisions of this section in a prior 53 taxable year, the amount of such tax refund or credit shall be added to 54 the tax imposed by this section, and such amount shall be subtracted in 55 computing unincorporated business taxable income for the taxable year.

S. 8578 354 1 (e) Credit relating to the annual increase in certain payments to a 2 landlord by a taxpayer relocating industrial and commercial employment 3 opportunities. (1) In addition to any other credit allowed by this 4 section, a taxpayer shall be allowed a credit against the tax imposed by 5 this chapter to be credited or refunded, without interest, in the manner 6 hereinafter provided in this section. 7 (A) Where a taxpayer shall have relocated to the city from a location 8 outside the state, and by such relocation shall have created a minimum 9 of one hundred industrial or commercial employment opportunities, and 10 where such taxpayer shall have entered into a written lease for the 11 relocation premises, the terms of which lease provide for increased 12 additional payments to the landlord which are based solely and directly 13 upon any increase or addition in real estate taxes imposed on the leased 14 premises, the taxpayer upon approval and certification by the industrial 15 and commercial incentive board as hereinafter provided shall be entitled 16 to a credit against the tax imposed by this chapter. The amount of such 17 credit shall be: An amount equal to the annual increased payments actu- 18 ally made by the taxpayer to the landlord which are solely and directly 19 attributable to an increase or addition to the real estate tax imposed 20 upon the leased premises. Such credit shall be allowed only to the 21 extent that the taxpayer has not otherwise claimed said amount as a 22 deduction against the tax imposed by this chapter. 23 The industrial and commercial incentive board in approving and certi- 24 fying to the qualifications of the taxpayer to receive the tax credit 25 provided for herein shall first determine that the applicant has met the 26 requirements of this section, and further, that the granting of the tax 27 credit to the applicant is in the "public interest." In determining 28 that the granting of the tax credit is in the public interest, the board 29 shall make affirmative findings that: the granting of the tax credit to 30 the applicant will not effect an undue hardship on similar taxpayers 31 already located within the city; the existence of this tax incentive has 32 been instrumental in bringing about the relocation of the applicant to 33 the city; and the granting of the tax credit will foster the economic 34 recovery and economic development of the city. 35 The tax credit, if approved and certified by the industrial and 36 commercial incentive board, must be utilized annually by the taxpayer 37 for the length of the term of the lease or for a period not to exceed 38 ten years from the date of relocation, whichever period is shorter. 39 (B) Definitions: When used in this section, "Employment opportunity" 40 means the creation of a full time position of gainful employment for an 41 industrial or commercial employee and the actual hiring of such employee 42 for the said position. 43 "Industrial employee" means one engaged in the manufacture or assembl- 44 ing of tangible goods or the processing of raw materials. 45 "Commercial employee" means one engaged in the buying, selling or 46 otherwise providing of goods or services other than on a retail basis. 47 "Retail" means the selling or otherwise disposing or furnishing of 48 tangible goods or services directly to the ultimate user or consumer. 49 "Full time position" means the hiring of an industrial or commercial 50 employee in a position of gainful employment where the number of hours 51 worked by such employee is not less than thirty hours during any given 52 week. 53 "Industrial and commercial incentive board" means the board created 54 pursuant to subchapter two of chapter two of this title. 55 (2) The credit allowed under this section for any taxable year shall 56 be deemed to be an overpayment of tax by the taxpayer to be credited or

S. 8578 355 1 refunded, without interest, in accordance with the provisions of section 2 11-526 of this chapter. 3 (f) Credit relating to certain expenses involved in the cost of relo- 4 cating industrial and commercial employment opportunities. (1) In 5 addition to any other credit allowed by this section, a taxpayer shall 6 be allowed a credit against the tax imposed by this chapter to be cred- 7 ited or refunded in the manner hereinafter provided in this section. 8 The amount of such credit shall be: 9 (A) A maximum of three hundred dollars for each commercial employment 10 and a maximum of five hundred dollars for each industrial employment 11 opportunity relocated to the city from an area outside the state. Such 12 credit shall be allowed to a taxpayer who relocates a minimum of ten 13 employment opportunities. The credit shall be allowed against employment 14 opportunity relocation costs incurred by the taxpayer. Such credit shall 15 be allowed only to the extent that the taxpayer has not claimed a 16 deduction for allowable employment opportunity relocation costs. The 17 credit allowed hereunder may be taken by the taxpayer in whole or in 18 part in the year in which the employment opportunity is relocated by 19 such taxpayer or either of the two years succeeding such event; 20 provided, however, that no credit shall be allowed under this subdivi- 21 sion to a taxpayer for industrial employment opportunities relocated to 22 premises (i) that are within an industrial business zone established 23 pursuant to section 22-626 of the code of the preceding municipality and 24 (ii) for which a binding contract to purchase or lease was first entered 25 into by the taxpayer on or after July first, two thousand five. 26 The commissioner of finance is empowered to promulgate rules and regu- 27 lations and to prescribe the form of application to be used. 28 (B) Definitions: When used in this section, "Employment Opportunity" 29 means the creation of a full time position of gainful employment for an 30 industrial or commercial employee and the actual hiring of such employee 31 for the said position. 32 "Industrial Employee" means one engaged in the manufacture or assembl- 33 ing of tangible goods or the processing of raw materials. 34 "Commercial Employee" means one engaged in the buying, selling or 35 otherwise providing of goods or services other than on a retail basis. 36 "Retail" means the selling or otherwise disposing of tangible goods 37 directly to the ultimate user or consumer. 38 "Full Time Position" means the hiring of an industrial or commercial 39 employee in a position of gainful employment where the number of hours 40 worked by such employee is not less than thirty hours during any given 41 work week. 42 "Employment Opportunity Relocation Costs" means the costs incurred by 43 the taxpayer in moving furniture, files, papers and office equipment 44 into the city from a location outside the state; the costs incurred by 45 the taxpayer in the moving from a location outside the state; the costs 46 of installation of telephones and other communications equipment 47 required as a result of the relocation to the city from a location 48 outside the state; the cost incurred in the purchase of office furniture 49 and fixtures required as a result of the relocation to the city from a 50 location outside the state; and the cost of renovation of the premises 51 to be occupied as a result of the relocation provided, however, that 52 such renovation costs shall be allowable only to the extent that they do 53 not exceed seventy-five cents per square foot of the total area utilized 54 by the taxpayer in the occupied premises. 55 (2) The credit allowed under this section for any taxable year shall 56 be deemed to be an overpayment of tax by the taxpayer to be credited or

S. 8578 356 1 refunded without interest, in accordance with the provisions of section 2 11-526 of this chapter. 3 (i) Relocation and employment assistance credit. (1) In addition to 4 any other credit allowed by this section, a taxpayer that has obtained 5 the certifications required by chapter six-B of title twenty-two of the 6 code of the preceding municipality shall be allowed a credit against the 7 tax imposed by this chapter. The amount of the credit shall be the 8 amount determined by multiplying five hundred dollars or, in the case of 9 a taxpayer that has obtained pursuant to chapter six-B of such title 10 twenty-two a certification of eligibility dated on or after July first, 11 nineteen hundred ninety-five, one thousand dollars or, in the case of an 12 eligible business that has obtained pursuant to chapter six-B of such 13 title twenty-two a certification of eligibility dated on or after July 14 first, two thousand, for a relocation to eligible premises located with- 15 in a revitalization area defined in subdivision (n) of section 22-621 of 16 the code of the preceding municipality, three thousand dollars, by the 17 number of eligible aggregate employment shares maintained by the taxpay- 18 er during the taxable year with respect to particular premises to which 19 the taxpayer has relocated; provided, however, with respect to a relo- 20 cation for which no application for a certificate of eligibility is 21 submitted prior to July first, two thousand three, to eligible premises 22 that are not within a revitalization area, if the date of such relo- 23 cation as determined pursuant to subdivision (j) of section 22-621 of 24 the code of the preceding municipality is before July first, nineteen 25 hundred ninety-five, the amount to be multiplied by the number of eligi- 26 ble aggregate employment shares shall be five hundred dollars, and with 27 respect to a relocation for which no application for a certificate of 28 eligibility is submitted prior to July first, two thousand three, to 29 eligible premises that are within a revitalization area, if the date of 30 such relocation as determined pursuant to subdivision (j) of such 31 section is before July first, nineteen hundred ninety-five, the amount 32 to be multiplied by the number of eligible aggregate employment shares 33 shall be five hundred dollars, and if the date of such relocation as 34 determined pursuant to subdivision (j) of such section is on or after 35 July first, nineteen hundred ninety-five, and before July first, two 36 thousand, one thousand dollars; provided, however, that no credit shall 37 be allowed for the relocation of any retail activity or hotel services; 38 provided, further, that no credit shall be allowed under this subdivi- 39 sion to any taxpayer that has elected pursuant to subdivision (d) of 40 section 22-622 of the code of the preceding municipality to take such 41 credit against a gross receipts tax imposed under chapter eleven of this 42 title; and provided that in the case of an eligible business that has 43 obtained pursuant to chapter six-B of such title twenty-two certif- 44 ications of eligibility for more than one relocation, the portion of the 45 total amount of eligible aggregate employment shares to be multiplied by 46 the dollar amount specified in this paragraph for each such certif- 47 ication of a relocation shall be the number of total attributed eligible 48 aggregate employment shares determined with respect to such relocation 49 pursuant to subdivision (o) of section 22-621 of the code of the preced- 50 ing municipality. For purposes of this subdivision, the terms "eligible 51 aggregate employment shares," "relocate," "retail activity" and "hotel 52 services" shall have the meanings ascribed by section 22-621 of the code 53 of the preceding municipality. 54 (2) The credit allowed under this subdivision with respect to eligible 55 aggregate employment shares maintained with respect to particular prem- 56 ises to which the taxpayer has relocated shall be allowed for the first

S. 8578 357 1 taxable year during which such eligible aggregate employment shares are 2 maintained with respect to such premises and for any of the twelve 3 succeeding taxable years during which eligible aggregate employment 4 shares are maintained with respect to such premises; provided that the 5 credit allowed for the twelfth succeeding taxable year shall be calcu- 6 lated by multiplying the number of eligible aggregate employment shares 7 maintained with respect to such premises in the twelfth succeeding taxa- 8 ble year by the lesser of one and a fraction the numerator of which is 9 such number of days in the taxable year of relocation less the number of 10 days the eligible business maintained employment shares in the eligible 11 premises in the taxable year of relocation and the denominator of which 12 is the number of days in such twelfth succeeding taxable year during 13 which such eligible aggregate employment shares are maintained with 14 respect to such premises. Except as provided in paragraph four of this 15 subdivision, if the amount of the credit allowable under this subdivi- 16 sion for any taxable year exceeds the tax imposed for such year, the 17 excess may be carried over, in order, to the five immediately succeeding 18 taxable years and, to the extent not previously deductible, may be 19 deducted from the taxpayer's tax for such years. 20 (3) The credit allowable under this subdivision shall be deducted 21 after the credits allowed by subdivisions (b) and (j) of this section, 22 but prior to the deduction of any other credit allowed by this section. 23 (4) In the case of a taxpayer that has obtained a certification of 24 eligibility pursuant to chapter six-B of title twenty-two of the code of 25 the preceding municipality dated on or after July first, two thousand 26 for a relocation to eligible premises located within the revitalization 27 area defined in subdivision (n) of section 22-621 of the code of the 28 preceding municipality, the credits allowed under this subdivision, or 29 in the case of a taxpayer that has relocated more than once, the portion 30 of such credits attributed to such certification of eligibility pursuant 31 to paragraph one of this subdivision, against the tax imposed by this 32 chapter for the taxable year of such relocation and for the four taxable 33 years immediately succeeding the taxable year of such relocation, shall 34 be deemed to be overpayments of tax by the taxpayer to be credited or 35 refunded, without interest, in accordance with the provisions of section 36 11-526 of this chapter. For such taxable years, such credits or portions 37 thereof may not be carried over to any succeeding taxable year; 38 provided, however, that this paragraph shall not apply to any relocation 39 for which an application for a certification of eligibility was not 40 submitted prior to July first, two thousand three, unless the date of 41 such relocation is on or after July first, two thousand. 42 (j) (1) If a partner in an unincorporated business is taxable under 43 this chapter and is required to include in unincorporated business taxa- 44 ble income his, her or its distributive share of income, gain, loss and 45 deductions of, or guaranteed payments from, such unincorporated busi- 46 ness, such partner shall be allowed a credit against the tax imposed by 47 this chapter equal to the lesser of the amounts determined in subpara- 48 graphs (A) and (B) of this paragraph: 49 (A) The amount determined in this subparagraph is the product of (i) 50 the sum of (I) the tax imposed by this chapter on the unincorporated 51 business for its taxable year ending within or with the taxable year of 52 the partner and paid by the unincorporated business and (II) the amount 53 of any credit or credits taken by the unincorporated business under this 54 section (except the credit allowed by subdivision (b) of this section) 55 for its taxable year ending within or with the taxable year of the part- 56 ner, to the extent that such credits do not reduce such unincorporated

S. 8578 358 1 business's tax below zero, and (ii) a fraction, the numerator of which 2 is the net total of the partner's distributive share of income, gain, 3 loss and deductions of, and guaranteed payments from, the unincorporated 4 business for such taxable year, and the denominator of which is the sum, 5 for such taxable year, of the net total distributive shares of income, 6 gain, loss and deductions of, and guaranteed payments to, all partners 7 in the unincorporated business for whom or which such net total, as 8 separately determined for each partner, is greater than zero. 9 (B) The amount determined in this subparagraph is the difference 10 between (i) the tax computed pursuant to this chapter on the unincorpo- 11 rated business taxable income of the partner, without allowance of any 12 credits allowed by this section, and (ii) the tax so computed, deter- 13 mined as if the partner had no such distributive share or guaranteed 14 payments with respect to the unincorporated business, provided, however, 15 that the amounts computed in clauses (i) and (ii) of this subparagraph 16 shall be computed with the following modifications: 17 (I) such amounts shall be computed without taking into account any 18 carryforward or carryback by the partner of a net operating loss; 19 (II) if, prior to taking into account any distributive share or guar- 20 anteed payments from any unincorporated business or any net operating 21 loss carryforward or carryback, the unincorporated business taxable 22 income of the partner is less than zero, such unincorporated business 23 taxable income shall be treated as zero; and 24 (III) if such partner's net total distributive share of income, gain, 25 loss and deductions of, and guaranteed payments from, any unincorporated 26 business is less than zero, such net total shall be treated as zero. The 27 amount determined in this subparagraph shall not be less than zero. 28 (2) (A) Notwithstanding anything to the contrary in paragraph one of 29 this subdivision, the credit or the sum of the credits that may be taken 30 by a partner for a taxable year under this subdivision with respect to 31 an unincorporated business or unincorporated businesses in which he, she 32 or it is a partner shall not exceed the tax imposed on the unincorporat- 33 ed business taxable income of such partner under this chapter for such 34 taxable year reduced by the credit allowed under subdivision (b) of this 35 section. If the credit allowed under paragraph one of this subdivision 36 or the sum of such credits exceeds such tax as so reduced, the amount of 37 the excess may be carried forward, in order, to each of the seven imme- 38 diately succeeding taxable years and, to the extent not previously 39 taken, shall be allowed as a credit in each of such years, provided, the 40 credit determined for the taxable year under paragraph one of this 41 subdivision shall be taken before taking any credit carryforward pursu- 42 ant to this paragraph and the credit carryforward attributable to the 43 earliest taxable year shall be taken before taking a credit carryforward 44 attributable to a subsequent taxable year. 45 (B) Notwithstanding anything to the contrary in subparagraph (A) of 46 this paragraph, in the case of a partner which is a partnership, no 47 credit carryforward to any taxable year shall be allowed unless one or 48 more of the partners therein during such taxable year were persons 49 having a proportionate interest or interests, amounting to at least 50 eighty percent of all such interests, in the unincorporated business 51 gross income and unincorporated business deductions of the partnership 52 which was allowed the credit for which a carryforward is claimed. In 53 such event, the carryforward allowable on account of such credit shall 54 not exceed the percentage of the amount otherwise allowable, determined 55 by dividing (i) the sum of the proportionate interests in the unincorpo- 56 rated business gross income and unincorporated business deductions of

S. 8578 359 1 the partnership, for the year to which the credit is carried forward, 2 attributable to such partners, by (ii) the sum of such proportionate 3 interests owned by all partners for such taxable year. The amount by 4 which the carryforward otherwise allowable exceeds the amount allowable 5 pursuant to this subparagraph shall not be a carryforward to any other 6 taxable year. 7 (3) The credit allowed under this subdivision shall not be allowed to 8 a partner in an unincorporated business with respect to any tax paid by 9 the unincorporated business under this chapter for any taxable year 10 beginning before July first, nineteen hundred ninety-four. 11 (4) Notwithstanding anything to the contrary, the credit allowable 12 under this subdivision shall be taken after the credit allowed by subdi- 13 vision (b) of this section is taken, but before any other credit allowed 14 by this section is taken. 15 (5) The commissioner of finance of the city of Staten Island shall 16 convene a working group, consisting of representatives of the department 17 of finance of the city of Staten Island and representatives of affected 18 industries, and other persons the commissioner deems appropriate, to 19 study the treatment under the unincorporated business tax of income from 20 investment and real estate activities and the impact of the credit 21 permitted by this subdivision, including but not limited to cases where 22 interests in a taxpayer are held by another taxpayer subject to tax on 23 unincorporated business taxable income and the first taxpayer is enti- 24 tled to claim a deduction for a net operating loss carryover and the 25 second is not entitled to a corresponding deduction with the result, in 26 certain cases, that the net income allocated to the second taxpayer may 27 be subject to an effective rate of tax in excess of the rate imposed by 28 this chapter. In addition, the working group shall also study the tax 29 treatment of parking garages which are open or available to the general 30 public and which also provide available space to tenants. In conducting 31 such study, such working group shall take into account such factors as 32 economic development, tax administration and other goals of tax policy 33 and shall consider alternatives that would reduce disincentives for 34 investing in corporations and other entities engaged in business in the 35 city of Staten Island, such as exempting income from investment activ- 36 ities from the tax on unincorporated business taxable income. The 37 commissioner shall prepare a report based on the deliberations of the 38 working group on or before April fifteenth, nineteen hundred ninety- 39 five. 40 (k) Credit relating to certain sales and compensating use taxes on 41 certain services. (1) In addition to any other credit allowed by this 42 section, a taxpayer shall be allowed a credit against the tax imposed by 43 this chapter to be credited or refunded in the manner hereinafter 44 provided in this subdivision. The amount of such credit shall be equal 45 to the amount of sales and compensating use taxes imposed by section 46 eleven hundred seven of the tax law during the taxpayer's taxable year, 47 and the amount of any interest imposed in connection therewith, which 48 was paid after January first, nineteen hundred ninety-five, less any 49 credit or refund of such taxes (or such interest), with respect to the 50 purchase or use by the taxpayer of the services described in subdivision 51 (b) of section eleven hundred five-b of the tax law. 52 (2) The credit allowed under this subdivision for any taxable year 53 shall be deemed to be an overpayment of tax by the taxpayer to be cred- 54 ited or refunded, without interest, in accordance with the provisions of 55 section 11-526 of this chapter.

S. 8578 360 1 (3) Where the taxpayer receives a refund or credit of any tax imposed 2 under section eleven hundred seven of the tax law, or of any interest 3 imposed in connection therewith, for which the taxpayer had claimed a 4 credit under this subdivision in a prior taxable year, the amount of 5 such tax, or such interest, refund or credit shall be added to the tax 6 imposed by this chapter, and such amount shall be subtracted in comput- 7 ing unincorporated business taxable income for the taxable year. 8 (l) Lower Manhattan relocation and employment assistance credit. (1) 9 In addition to any other credit allowed by this section, a taxpayer that 10 has obtained the certifications required by chapter six-C of title twen- 11 ty-two of the code of the preceding municipality shall be allowed a 12 credit against the tax imposed by this chapter. The amount of the credit 13 shall be the amount determined by multiplying three thousand dollars by 14 the number of eligible aggregate employment shares maintained by the 15 taxpayer during the taxable year with respect to eligible premises to 16 which the taxpayer has relocated; provided, however, that no credit 17 shall be allowed for the relocation of any retail activity or hotel 18 services; provided, further, that no credit shall be allowed under this 19 subdivision to any taxpayer that has elected pursuant to subdivision (d) 20 of section 22-624 of the code of the preceding municipality to take such 21 credit against a gross receipts tax imposed under chapter eleven of this 22 title. For purposes of this subdivision, the terms "eligible aggregate 23 employment shares", "eligible premises", "relocate", "retail activity" 24 and "hotel services" shall have the meanings ascribed by section 22-623 25 of the code of the preceding municipality. 26 (2) The credit allowed under this subdivision with respect to eligible 27 aggregate employment shares maintained with respect to eligible premises 28 to which the taxpayer has relocated shall be allowed for the taxable 29 year of the relocation and for any of the twelve succeeding taxable 30 years during which eligible aggregate employment shares are maintained 31 with respect to eligible premises; provided that the credit allowed for 32 the twelfth succeeding taxable year shall be calculated by multiplying 33 the number of eligible aggregate employment shares maintained with 34 respect to eligible premises in the twelfth succeeding taxable year by 35 the lesser of one and a fraction the numerator of which is such number 36 of days in the taxable year of relocation less the number of days the 37 taxpayer maintained employment shares in eligible premises in the taxa- 38 ble year of relocation and the denominator of which is the number of 39 days in such twelfth succeeding taxable year during which such eligible 40 aggregate employment shares are maintained with respect to such prem- 41 ises. 42 (3) Except as provided in paragraph four of this subdivision, if the 43 amount of the credit allowable under this subdivision for any taxable 44 year exceeds the tax imposed for such year, the excess may be carried 45 over, in order, to the five immediately succeeding taxable years and, to 46 the extent not previously deductible, may be deducted from the taxpay- 47 er's tax for such years. 48 (4) The credits allowed under this subdivision, against the tax 49 imposed by this chapter for the taxable year of the relocation and for 50 the four taxable years immediately succeeding the taxable year of such 51 relocation, shall be deemed to be overpayments of tax by the taxpayer to 52 be credited or refunded, without interest, in accordance with the 53 provisions of section 11-526 of this chapter. For such taxable years, 54 such credits or portions thereof may not be carried over to any succeed- 55 ing taxable year.

S. 8578 361 1 (5) The credit allowable under this subdivision shall be deducted 2 after the credits allowed by subdivisions (b), (i) and (j) of this 3 section, but prior to the deduction of any other credit allowed by this 4 section. 5 (n) Industrial business zone tax credit. (1) For taxable years begin- 6 ning on or after January first, two thousand six, in addition to any 7 other credit allowed by this section, an eligible business that first 8 enters into a binding contract on or after July first, two thousand five 9 to purchase or lease eligible premises to which it relocates shall be 10 allowed a one-time credit against the tax imposed by this chapter to be 11 credited or refunded in the manner hereinafter provided in this subdivi- 12 sion. The amount of such credit shall be one thousand dollars per full- 13 time employee; provided, however, that the amount of such credit shall 14 not exceed the lesser of actual relocation costs or one hundred thousand 15 dollars. 16 (2) When used in this subdivision, the following terms shall have the 17 following meanings: 18 "Eligible business" means any business subject to tax under this chap- 19 ter that (A) has been conducting substantial business operations and 20 engaging primarily in industrial and manufacturing activities at one or 21 more locations within the city of Staten Island or outside the state of 22 New York continuously during the twenty-four consecutive full months 23 immediately preceding relocation, (B) has leased the premises from which 24 it relocates continuously during the twenty-four consecutive full months 25 immediately preceding relocation, (C) first enters into a binding 26 contract on or after July first, two thousand five to purchase or lease 27 eligible premises to which such business will relocate, and (D) will be 28 engaged primarily in industrial and manufacturing activities at such 29 eligible premises. 30 "Eligible premises" means premises located entirely within an indus- 31 trial business zone. For any eligible business, an industrial business 32 zone tax credit shall not be granted with respect to more than one 33 eligible premises. 34 "Full-time employee" means (A) one person gainfully employed in an 35 eligible premises by an eligible business where the number of hours 36 required to be worked by such person is not less than thirty-five hours 37 per week; or (B) two persons gainfully employed in an eligible premises 38 by an eligible business where the number of hours required to be worked 39 by each such person is more than fifteen hours per week but less than 40 thirty-five hours per week. 41 "Industrial business zone" means an area within the city of Staten 42 Island established pursuant to section 22-626 of the code of the preced- 43 ing municipality. 44 "Industrial business zone tax credit" means a credit, as provided for 45 in this subdivision, against a tax imposed under this chapter. 46 "Industrial and manufacturing activities" means activities involving 47 the assembly of goods to create a different article, or the processing, 48 fabrication, or packaging of goods. Industrial and manufacturing activ- 49 ities shall not include waste management or utility services. 50 "Relocation" means the physical relocation of furniture, fixtures, 51 equipment, machinery and supplies directly to an eligible premises, from 52 one or more locations of an eligible business, including at least one 53 location at which such business conducts substantial business operations 54 and engages primarily in industrial and manufacturing activities. For 55 purposes of this subdivision, the date of relocation shall be (A) the 56 date of the completion of the relocation to the eligible premises or (B)

S. 8578 362 1 ninety days from the commencement of the relocation to the eligible 2 premises, whichever is earlier. 3 "Relocation costs" means costs incurred in the relocation of such 4 furniture, fixtures, equipment, machinery and supplies, including, but 5 not limited to, the cost of dismantling and reassembling equipment and 6 the cost of floor preparation necessary for the reassembly of the equip- 7 ment. Relocation costs shall include only such costs that are incurred 8 during the ninety-day period immediately following the commencement of 9 the relocation to an eligible premises. Relocation costs shall not 10 include any costs for structural or capital improvements or items 11 purchased in connection with the relocation. 12 (3) The credit allowed under this subdivision for any taxable year 13 shall be deemed to be an overpayment of tax by the taxpayer to be cred- 14 ited or refunded without interest, in accordance with the provisions of 15 section 11-526 of this chapter. 16 (4) The number of full-time employees for the purposes of calculating 17 an industrial business zone tax credit shall be the average number of 18 full-time employees, calculated on a weekly basis, employed in the 19 eligible premises by the eligible business in the fifty-two week period 20 immediately following relocation. 21 (5) The credit allowed under this subdivision must be taken by the 22 taxpayer in the taxable year in which such fifty-two week period ends. 23 (6) For the purposes of calculating entire net income in the taxable 24 year that an industrial business zone tax credit is allowed, a taxpayer 25 must add back the amount of the credit allowed under this subdivision, 26 to the extent of any relocation costs deducted in the current taxable 27 year or a prior taxable year in calculating federal taxable income. 28 (7) The credit allowed under this subdivision shall not be granted for 29 an eligible business for more than one relocation. Notwithstanding the 30 foregoing, an industrial business zone tax credit allowed under this 31 subdivision shall not be granted if the eligible business receives bene- 32 fits pursuant to chapter six-B or six-C of title twenty-two of the code 33 of the preceding municipality, through a grant program administered by 34 the business relocation assistance corporation, or through the Staten 35 Island city printers relocation fund grant. 36 (8) The commissioner of finance is authorized to promulgate rules and 37 regulations and to prescribe forms necessary to effectuate the purposes 38 of this subdivision. 39 The commissioner of finance is empowered to promulgate rules and regu- 40 lations and to prescribe the form of application to be used. 41 (B) Definitions: When used in this section, "Employment Opportunity" 42 means the creation of a full time position of gainful employment for an 43 industrial or commercial employee and the actual hiring of such employee 44 for the said position. 45 "Industrial Employee" means one engaged in the manufacture or assembl- 46 ing of tangible goods or the processing of raw materials. 47 "Commercial Employee" means one engaged in the buying, selling or 48 otherwise providing of goods or services other than on a retail basis. 49 "Retail" means the selling or otherwise disposing of tangible goods 50 directly to the ultimate user or consumer. 51 "Full Time Position" means the hiring of an industrial or commercial 52 employee in a position of gainful employment where the number of hours 53 worked by such employee is not less than thirty hours during any given 54 work week. 55 "Employment Opportunity Relocation Costs" means the costs incurred by 56 the taxpayer in moving furniture, files, papers and office equipment

S. 8578 363 1 into the city from a location outside the state; the costs incurred by 2 the taxpayer in the moving from a location outside the state; the costs 3 of installation of telephones and other communications equipment 4 required as a result of the relocation to the city from a location 5 outside the state; the cost incurred in the purchase of office furniture 6 and fixtures required as a result of the relocation to the city from a 7 location outside the state; and the cost of renovation of the premises 8 to be occupied as a result of the relocation provided, however, that 9 such renovation costs shall be allowable only to the extent that they do 10 not exceed seventy-five cents per square foot of the total area utilized 11 by the taxpayer in the occupied premises. 12 (2) The credit allowed under this section for any taxable year shall 13 be deemed to be an overpayment of tax by the taxpayer to be credited or 14 refunded without interest, in accordance with the provisions of section 15 11-526 of this chapter. 16 (o) Biotechnology credit. (a)(1) A taxpayer that is a qualified emerg- 17 ing technology company, engages in biotechnologies, and meets the eligi- 18 bility requirements of this subdivision, shall be allowed a credit 19 against the tax imposed by this subchapter. The amount of credit shall 20 be equal to the sum of the amounts specified in subparagraphs three, 21 four and five of this paragraph, subject to the limitations in subpara- 22 graph seven of this paragraph and paragraph (b) of this subdivision. For 23 the purposes of this subdivision, "qualified emerging technology compa- 24 ny" shall mean a company located in city: (A) whose primary products or 25 services are classified as emerging technologies and whose total annual 26 product sales are ten million dollars or less; or (B) a company that has 27 research and development activities in city and whose ratio of research 28 and development funds to net sales equals or exceeds the average ratio 29 for all surveyed companies classified as determined by the National 30 Science Foundation in the most recent published results from its Survey 31 of Industry Research and Development, or any comparable successor survey 32 as determined by the department, and whose total annual product sales 33 are ten million dollars or less. For the purposes of this subdivision, 34 the definition of research and development funds shall be the same as 35 that used by the National Science Foundation in the aforementioned 36 survey. For the purposes of this subdivision, "biotechnologies" shall 37 mean the technologies involving the scientific manipulation of living 38 organisms, especially at the molecular and/or the sub-molecular genetic 39 level, to produce products conducive to improving the lives and health 40 of plants, animals, and humans; and the associated scientific research, 41 pharmacological, mechanical, and computational applications and services 42 connected with these improvements. Activities included with such appli- 43 cations and services shall include, but not be limited to, alternative 44 mRNA splicing, DNA sequence amplification, antigenetic switching bioaug- 45 mentation, bioenrichment, bioremediation, chromosome walking, cytogenet- 46 ic engineering, DNA diagnosis, fingerprinting, and sequencing, electro- 47 poration, gene translocation, genetic mapping, site-directed 48 mutagenesis, bio-transduction, bio-mechanical and bio-electrical engi- 49 neering, and bio-informatics. 50 (2) An eligible taxpayer shall (A) have no more than one hundred full- 51 time employees, of which at least seventy-five percent are employed in 52 the city, (B) have a ratio of research and development funds to net 53 sales, as referred to in section thirty-one hundred two-e of the public 54 authorities law, which equals or exceeds six percent during the calendar 55 year ending with or within the taxable year for which the credit is 56 claimed, and (C) have gross revenues, along with the gross revenues of

S. 8578 364 1 its "affiliates" and "related members" not exceeding twenty million 2 dollars for the calendar year immediately preceding the calendar year 3 ending with or within the taxable year for which the credit is claimed. 4 For the purposes of this subdivision, "affiliates" shall mean those 5 corporations that are members of the same affiliated group, as defined 6 in section fifteen hundred four of the internal revenue code, as the 7 taxpayer. For the purposes of this subdivision, "related members" shall 8 mean a person, corporation, or other entity, including an entity that is 9 treated as a partnership or other pass-through vehicle for purposes of 10 federal taxation, whether such person, corporation or entity is a 11 taxpayer or not, where one such person, corporation or entity, or set of 12 related persons, corporations or entities, directly or indirectly owns 13 or controls a controlling interest in another entity. Such entity or 14 entities may include all taxpayers under chapters six, eleven and seven- 15 teen of this title, and subchapters two and three of this chapter. A 16 controlling interest shall mean, in the case of a corporation, either 17 thirty percent or more of the total combined voting power of all classes 18 of stock of such corporation, or thirty percent or more of the capital, 19 profits or beneficial interest in such voting stock of such corporation; 20 and in the case of a partnership, association, trust or other entity, 21 thirty percent or more of the capital, profits or beneficial interest in 22 such partnership, association, trust or other entity. 23 (3) An eligible taxpayer shall be allowed a credit for eighteen per 24 centum of the cost or other basis for federal income tax purposes of 25 research and development property that is acquired by the taxpayer by 26 purchase as defined in section 179(d) of the internal revenue code and 27 placed in service during the calendar year that ends with or within the 28 taxable year for which the credit is claimed. Provided, however, for the 29 purposes of this paragraph only, an eligible taxpayer shall be allowed a 30 credit for such percentage of the (A) cost or other basis for federal 31 income tax purposes for property used in the testing or inspection of 32 materials and products, (B) the costs or expenses associated with quali- 33 ty control of the research and development, (C) fees for use of sophis- 34 ticated technology facilities and processes, (D) fees for the production 35 or eventual commercial distribution of materials and products resulting 36 from the activities of an eligible taxpayer as long as such activities 37 fall under activities relating to biotechnologies. The costs, expenses 38 and other amounts for which a credit is allowed and claimed under this 39 paragraph shall not be used in the calculation of any other credit 40 allowed under this subchapter. For the purposes of this subdivision, 41 "research and development property" shall mean property that is used for 42 purposes of research and development in the experimental or laboratory 43 sense. Such purposes shall not be deemed to include the ordinary testing 44 or inspection of materials or products for quality control, efficiency 45 surveys, management studies, consumer surveys, advertising, promotions, 46 or research in connection with literary, historical or similar projects. 47 (4) An eligible taxpayer shall be allowed a credit for nine per centum 48 of qualified research expenses paid or incurred by the taxpayer in the 49 calendar year ending with or within the taxable year for which the cred- 50 it is claimed. For the purposes of this subdivision, "qualified research 51 expenses" shall mean expenses associated with in-house research and 52 processes, and costs associated with the dissemination of the results of 53 the products that directly result from such research and development 54 activities; provided, however, that such costs shall not include adver- 55 tising or promotion through media. In addition, costs associated with 56 the preparation of patent applications, patent application filing fees,

S. 8578 365 1 patent research fees, patent examinations fees, patent post allowance 2 fees, patent maintenance fees, and grant application expenses and fees 3 shall qualify as qualified research expenses. In no case shall the cred- 4 it allowed under this paragraph apply to expenses for litigation or the 5 challenge of another entity's intellectual property rights, or for 6 contract expenses involving outside paid consultants. 7 (5) An eligible taxpayer shall be allowed a credit for qualified high- 8 technology training expenditures as described in this paragraph paid or 9 incurred by the taxpayer during the calendar year that ends with or 10 within the taxable year for which the credit is claimed. 11 (A) The amount of credit shall be one hundred percent of the training 12 expenses described in subparagraph (C) of this paragraph, subject to a 13 limitation of no more than four thousand dollars per employee per calen- 14 dar year for such training expenses. 15 (B) Qualified high-technology training shall include a course or 16 courses taken and satisfactorily completed by an employee of the taxpay- 17 er at an accredited, degree granting post-secondary college or universi- 18 ty in city that (i) directly relates to biotechnology activities, and 19 (ii) is intended to upgrade, retrain or improve the productivity or 20 theoretical awareness of the employee. Such course or courses may 21 include, but are not limited to, instruction or research relating to 22 techniques, meta, macro, or micro-theoretical or practical knowledge 23 bases or frontiers, or ethical concerns related to such activities. Such 24 course or courses shall not include classes in the disciplines of 25 management, accounting or the law or any class designed to fulfill the 26 discipline specific requirements of a degree program at the associate, 27 baccalaureate, graduate or professional level of these disciplines. 28 Satisfactory completion of a course or courses shall mean the earning 29 and granting of credit or equivalent unit, with the attainment of a 30 grade of "B" or higher in a graduate level course or courses, a grade of 31 "C" or higher in an undergraduate level courses or courses, or a similar 32 measure of competency for a course that is not measured according to a 33 standard grade formula. 34 (C) Qualified high-technology training expenditures shall include 35 expenses for tuition and mandatory fees, software required by the insti- 36 tution, fees for textbooks or other literature required by the institu- 37 tion offering the course or courses, minus applicable scholarships and 38 tuition or fee waivers not granted by the taxpayer or any affiliates of 39 the taxpayer, that are paid or reimbursed by the taxpayer. Qualified 40 high-technology expenditures do not include room and board, computer 41 hardware or software not specifically assigned for such course or cours- 42 es, late-charges, fines or membership dues and similar expenses. Such 43 qualified expenditures shall not be eligible for the credit provided by 44 this section unless the employee for whom the expenditures are disbursed 45 is continuously employed by the taxpayer in a full-time, full-year posi- 46 tion primarily located at a qualified site during the period of such 47 coursework and lasting through at least one hundred eighty days after 48 the satisfactory completion of the qualifying course-work. Qualified 49 high-technology training expenditures shall not include expenses for 50 in-house or shared training outside of a city higher education institu- 51 tion or the use of consultants outside of credit granting courses, 52 whether such consultants function inside of such higher education insti- 53 tution or not. 54 (D) If a taxpayer relocates from an academic business incubator facil- 55 ity partnered with an accredited post-secondary education institution 56 located within city, which provides space and business support services

S. 8578 366 1 to taxpayers, to another site, the credit provided in this subdivision 2 shall be allowed for all expenditures referenced in subparagraph (C) of 3 this paragraph paid or incurred in the two preceding calendar years that 4 the taxpayer was located in such an incubator facility for employees of 5 the taxpayer who also relocate from said incubator facility to such city 6 site and are employed and primarily located by the taxpayer in city. 7 Such expenditures in the two preceding years shall be added to the 8 amounts otherwise qualifying for the credit provided by this subdivision 9 that were paid or incurred in the calendar year that the taxpayer relo- 10 cates from such a facility. Such expenditures shall include expenses 11 paid for an eligible employee who is a full-time, full-year employee of 12 said taxpayer during the calendar year that the taxpayer relocated from 13 an incubator facility notwithstanding (i) that such employee was 14 employed full or part-time as an officer, staff-person or paid intern of 15 the taxpayer when such taxpayer was located at such incubator facility 16 or (ii) that such employee was not continuously employed when such 17 taxpayer was located at the incubator facility during the one hundred 18 eighty day period referred to in subparagraph (C) of this paragraph, 19 provided such employee received wages or equivalent income for at least 20 seven hundred fifty hours during any twenty-four month period when the 21 taxpayer was located at the incubator facility. Such expenditures shall 22 include payments made to such employee after the taxpayer has relocated 23 from the incubator facility for qualified expenditures if such payments 24 are made to reimburse an employee for expenditures paid by the employee 25 during such two preceding years. The credit provided under this para- 26 graph shall be allowed in any taxable year that the taxpayer qualifies 27 as an eligible taxpayer. 28 (E) For purposes of this subdivision the term "academic year" shall 29 mean the annual period of sessions of a post-secondary college or 30 university. 31 (F) For the purposes of this subdivision the term "academic incubator 32 facility" shall mean a facility providing low-cost space, technical 33 assistance, support services and educational opportunities, including 34 but not limited to central services provided by the manager of the 35 facility to the tenants of the facility, to an entity located in city. 36 Such entity's primary activity must be in biotechnologies, and such 37 entity must be in the formative stage of development. The academic incu- 38 bator facility and the entity must act in partnership with an accredited 39 post-secondary college or university located in city. An academic incu- 40 bator facility's mission shall be to promote job creation, entrepreneur- 41 ship, technology transfer, and provide support services to incubator 42 tenants, including, but not limited to, business planning, management 43 assistance, financial-packaging, linkages to financing services, and 44 coordinating with other sources of assistance. 45 (6) An eligible taxpayer may claim credits under this subdivision for 46 three consecutive years. In no case shall the credit allowed by this 47 subdivision to a taxpayer exceed two hundred fifty thousand dollars per 48 calendar year for eligible expenditures made during such calendar year. 49 (7) The credit allowed under this subdivision for any taxable year 50 shall not reduce the tax due for such year to less than the amount 51 computed in subdivision (a) of this section. Provided, however, if the 52 amount of credit allowed under this subdivision for any taxable year 53 reduces the tax to such amount, any amount of credit not deductible in 54 such taxable year shall be treated as an overpayment of tax to be cred- 55 ited or refunded in accordance with the provisions of section 11-526 of

S. 8578 367 1 this chapter; provided, however, that notwithstanding the provisions of 2 section 11-528 of this chapter, no interest shall be paid thereon. 3 (8) The credit allowed under this subdivision shall only be allowed 4 for taxable years beginning on or after January first, two thousand ten 5 and before January first, two thousand nineteen. 6 (b)(1) The percentage of the credit allowed to a taxpayer under this 7 subdivision in any calendar year shall be: 8 (A) If the average number of individuals employed full time by a 9 taxpayer in the city during the calendar year that ends with or within 10 the taxable year which the credit is claimed is at least one hundred 11 five percent of the taxpayer's base year employment, one hundred 12 percent, except that in no case shall the credit allowed under this 13 clause exceed two hundred fifty thousand dollars per calendar year. 14 Provided, however, the increase in base year employment shall not apply 15 to a taxpayer allowed a credit under this subdivision that was (I) 16 located outside of the city, (II) not doing business, or (III) did not 17 have any employees, in the year preceding the first year that the credit 18 is claimed. Any such taxpayer shall be eligible for one hundred percent 19 of the credit for the first calendar year that ends with or within the 20 taxable year for which the credit is claimed, provided that such taxpay- 21 er locates in the city, begins doing business in the city or hires 22 employees in the city during such calendar year and is otherwise eligi- 23 ble for the credit pursuant to the provisions of this subdivision. 24 (B) If the average number of individuals employed full time by a 25 taxpayer in the city during the calendar year that ends with or within 26 the taxable year for which the credit is claimed is less than one 27 hundred five percent of the taxpayer's base year employment, fifty 28 percent, except that in no case shall the credit allowed under this 29 clause exceed one hundred twenty five thousand dollars per calendar 30 year. In the case of an entity located in city receiving space and busi- 31 ness support services by an academic incubator facility, if the average 32 number of individuals employed full time by such entity in the city 33 during the calendar year in which the credit allowed under this subdivi- 34 sion is claimed is less than one hundred five percent of the taxpayer's 35 base year employment, the credit shall be zero. 36 (2) For the purposes of this subdivision, "base year employment" means 37 the average number of individuals employed full-time by the taxpayer in 38 the city in the year preceding the first calendar year that ends with or 39 within the taxable year for which the credit is claimed. 40 (3) For the purposes of this subdivision, average number of individ- 41 uals employed full-time shall be computed by adding the number of such 42 individuals employed by the taxpayer at the end of each quarter during 43 each calendar year or other applicable period and dividing the sum so 44 obtained by the number of such quarters occurring within such calendar 45 year or other applicable period. 46 (4) Notwithstanding anything contained in this section to the contra- 47 ry, the credit provided by this subdivision shall be allowed against the 48 taxes authorized by this chapter for the taxable year after reduction by 49 all other credits permitted by this chapter. 50 (p) Beer production credit. (1) A taxpayer subject to tax under this 51 chapter, that is registered as a distributor under article eighteen of 52 the tax law, and that produces sixty million or fewer gallons of beer in 53 this state in the taxable year, shall be allowed a credit against the 54 tax imposed by this chapter in the amount specified in paragraph two of 55 this subdivision. Provided, however, that no credit shall be allowed for 56 any beer produced in excess of fifteen million five hundred thousand

S. 8578 368 1 gallons in the taxable year. Notwithstanding anything in this title to 2 the contrary, if a partnership is allowed a credit under this subdivi- 3 sion, a taxpayer that is a partner in such partnership shall not be 4 allowed a credit under this subdivision for any taxable year that 5 includes the last day of the taxable year for which the partnership is 6 allowed such credit. 7 (2) The amount of the credit per taxpayer per taxable year for each 8 gallon of beer produced in the city on or after January first, two thou- 9 sand seventeen shall be determined as follows: 10 (i) for the first five hundred thousand gallons of beer produced in 11 the city in the taxable year, the credit shall equal twelve cents per 12 gallon; and 13 (ii) for each gallon of beer produced in the city in the taxable year 14 in excess of five hundred thousand gallons, the credit shall equal three 15 and eighty-six one hundredths cents per gallon. The credit allowed under 16 this subdivision for any taxable year shall be treated as an overpayment 17 of tax to be credited or refunded in accordance with the provisions of 18 section 11-526 of this chapter; provided, however, that notwithstanding 19 the provisions of section 11-528 of this chapter, no interest shall be 20 paid thereon. 21 (q) Credit for the provision of child care. In addition to any other 22 credit allowed under this section, a taxpayer whose application for a 23 credit authorized by section 11-144 of this title has been approved by 24 the department of finance shall be allowed a credit against the tax 25 imposed by this chapter. The amount of the credit shall be determined as 26 provided in such section. To the extent the amount of the credit allowed 27 by this subdivision exceeds the amount of tax due pursuant to this chap- 28 ter, as calculated without such credit, such excess amount shall be 29 treated as an overpayment of tax to be credited or refunded in accord- 30 ance with the provisions of section 11-526 of this chapter, provided, 31 however, that notwithstanding the requirements of section 11-528 of this 32 chapter to the contrary, no interest shall be paid thereon. 33 § 11-504 Taxable years to which tax applies; tax for taxable years 34 beginning prior to and ending after January first, nineteen hundred 35 sixty-six. (a) General. The tax imposed by section 11-503 of this 36 chapter, with any modification permitted by subdivision (b) of this 37 section, is imposed for each taxable year beginning with taxable years 38 ending on or after January first, nineteen hundred sixty-six. 39 (b) Alternate methods for determining tax for taxable years ending on 40 or after January first, nineteen hundred sixty-six. (1) The tax for any 41 taxable year ending on or after January first, nineteen hundred sixty- 42 six and before December thirty-first, nineteen hundred sixty-six, shall 43 be an amount equal to the tax which would have been imposed had section 44 11-503 of this chapter been in effect for the entire taxable year, 45 multiplied by the number of months, or major portions thereof, in such 46 taxable year which occur after December thirty-first, nineteen hundred 47 sixty-five and divided by the number of months, or major portions there- 48 of, in such taxable year. 49 (2) In lieu of the method of computation of tax prescribed in para- 50 graph one of this subdivision, if the taxpayer maintained adequate 51 records for the portion of any taxable year ending on or after January 52 first, nineteen hundred sixty-six, and before December thirty-first, 53 nineteen hundred sixty-six, which falls within the calendar year nine- 54 teen hundred sixty-six, the tax for such taxable year at the election of 55 the taxpayer may be computed on the basis of the unincorporated business 56 taxable income which the taxpayer would have reported had he or she

S. 8578 369 1 filed a federal income tax return for a taxable year beginning January 2 first, nineteen hundred sixty-six and ending with the close of such 3 taxable year ending before December thirty-first, nineteen hundred 4 sixty-six. Such taxable year beginning January first, nineteen hundred 5 sixty-six and ending before December thirty-first, nineteen hundred 6 sixty-six shall be deemed, unless clearly indicated otherwise, to be the 7 taxable year of the taxpayer. For purposes of this paragraph, the unin- 8 corporated business exemptions allowable under section 11-510 of this 9 chapter, the credit allowable under subdivision (b) of section 11-503 of 10 this chapter and any net operating loss deduction as modified pursuant 11 to subdivision (b) of section 11-507 of this chapter shall each be 12 reduced by the same part of such exemptions, credit, or net operating 13 loss deduction, as the case may be, as the number of months, or major 14 portions thereof, in the taxable year occurring before January first, 15 nineteen hundred sixty-six is of the number of months, or major portions 16 thereof, in such taxable year. Except as provided in paragraph two, the 17 tax for such period ending before December thirty-first, nineteen 18 hundred sixty-six, shall be computed in accordance with the other 19 provisions of this chapter. 20 § 11-505 Unincorporated business taxable income. The unincorporated 21 business taxable income of an unincorporated business shall be the 22 excess of its unincorporated business entire net income allocated to the 23 city, less the amount of: 24 (1) Its deductions under section 11-509 of this chapter not subject to 25 allocation; and 26 (2) Its unincorporated business exemptions under section 11-510 of 27 this chapter. 28 § 11-506 Unincorporated business gross income. (a) (1) General. 29 Unincorporated business gross income of an unincorporated business means 30 the sum of the items of income and gain of the business, of whatever 31 kind and in whatever form paid, includible in gross income for the taxa- 32 ble year for federal income tax purposes, including income and gain from 33 any property employed in the business, or from liquidation of the busi- 34 ness, or from collection of installment obligations of the business, or 35 from the sale or other disposition by an unincorporated entity of an 36 interest in another unincorporated entity if and to the extent such 37 income or gain is attributable to a trade, business, profession or occu- 38 pation carried on in whole or in part in the city by such other unincor- 39 porated entity, with the modifications specified in this section. 40 (2) The character of a partner's distributive share of gross income, 41 gains, losses and deductions of an unincorporated entity shall be deter- 42 mined as if such gross income, gains, losses and deductions were real- 43 ized directly by such partner regardless of how the interest in the 44 unincorporated entity was acquired and regardless of whether the 45 distributive share is proportionate to the partner's capital interest in 46 the unincorporated entity, provided, however, this paragraph shall not 47 apply to payments to a partner treated as occurring between the unincor- 48 porated entity and one who is not a partner under section seven hundred 49 seven of the internal revenue code, and provided, further, this para- 50 graph shall not affect the determination of whether gross income, gains, 51 losses or deductions of an unincorporated entity are subject to the tax 52 imposed by this chapter as realized from an unincorporated business. 53 (b) Modifications increasing federal gross income. There shall be 54 added to federal gross income of the business the following items 55 attributable to the business:

S. 8578 370 1 (1) Interest income on obligations of any state other than this state, 2 or of a political subdivision of any such other state unless created by 3 compact or agreement to which this state is a party. 4 (2) Interest or dividend income on obligations or securities of any 5 authority, commission, or instrumentality of the United States, which 6 the laws of the United States exempt from federal income tax but not 7 from state or local income taxes. 8 (3) In the case of a taxpayer who has exercised the election permitted 9 by subdivision (b) of section 11-509 of this chapter, if the property to 10 which such election relates was sold or otherwise disposed of during the 11 taxable year, the amount required by such subdivision to be added to 12 federal gross income. 13 (4) The entire amount allowable as an exclusion or deduction for stock 14 transfer taxes imposed by article twelve of the tax law in determining 15 federal gross income but only to the extent that such taxes are incurred 16 and paid in market making transactions. 17 (5) The amount allowed as an exclusion or deduction for sales and use 18 taxes imposed by section eleven hundred seven of the tax law in deter- 19 mining federal gross income but only such portion of such exclusion or 20 deduction which is not in excess of the amount of the credit allowed 21 pursuant to subdivision (d) of section 11-503 of this chapter. 22 (6) The amount allowed as an exclusion or deduction as rent in deter- 23 mining federal gross income but only such portion of such exclusion or 24 deduction which is not in excess of the amount of the credit allowed 25 pursuant to subdivision (e) of section 11-503 of this chapter. 26 (7) The amount allowed as an exclusion or deduction in determining 27 federal gross income but only such portion of such exclusion or 28 deduction which is not in excess of the amount of the credit allowed 29 pursuant to subdivision (f) of section 11-503 of this chapter. 30 (8) For taxable years beginning after December thirty-first, nineteen 31 hundred eighty-one, except with respect to property which is a qualified 32 mass commuting vehicle described in subparagraph (D) of paragraph eight 33 of subsection (f) of section one hundred sixty-eight of the internal 34 revenue code, relating to qualified mass commuting vehicles, any amount 35 which would properly be includible for federal income tax purposes had 36 the taxpayer not made the election permitted pursuant to such paragraph 37 eight as it was in effect for agreements entered into prior to January 38 first, nineteen hundred eighty-four. 39 (9) Upon the disposition of property to which subdivision (o) of 40 section 11-507 of this chapter applies, the amount, if any, by which the 41 aggregate of the amounts described in such subdivision fifteen attribut- 42 able to such property exceeds the aggregate of the amounts described in 43 subdivision (n) of section 11-507 of this chapter attributable to such 44 property. 45 (10) The amount allowed as an exclusion or deduction for sales and use 46 taxes imposed by section eleven hundred seven of the tax law in deter- 47 mining federal gross income, but only such portion of such exclusion or 48 deduction which is not in excess of the amount of the credit allowed 49 pursuant to subdivision (g) of section 11-503 of this chapter. 50 (12) The amount allowed as an exclusion or deduction for sales and use 51 taxes imposed by section eleven hundred seven of the tax law, or for any 52 interest imposed in connection therewith, in determining federal gross 53 income, but only such portion of such exclusion or deduction which is 54 not in excess of the amount of the credit allowed pursuant to subdivi- 55 sion (k) of section 11-503 of this chapter.

S. 8578 371 1 (13) Notwithstanding any other provision of this chapter to the 2 contrary, the amount allowed as an exclusion or deduction in determining 3 federal gross income of any loss, including but not limited to, losses 4 from notional principal contracts, losses, other than as a dealer, from 5 the holding, sale, disposition, assumption, offset or termination of a 6 position in, property, as defined in paragraph one of subdivision (c) of 7 section 11-502 of this chapter, or other substantially similar losses 8 from ordinary and routine trading or investment activity to the extent 9 determined by the commissioner of finance, realized in connection with 10 activities described in paragraph two of subdivision (c) of section 11 11-502 of this chapter if, and to the extent that, such activities are 12 not deemed an unincorporated business carried on by the taxpayer pursu- 13 ant to the provisions of subdivision (c) of section 11-502 of this chap- 14 ter. 15 (14) Notwithstanding any other provision of this chapter to the 16 contrary, in the case of a taxpayer that is an unincorporated entity 17 described in subparagraph (B) of paragraph four of subdivision (c) of 18 section 11-502 of this chapter, the amount allowed as an exclusion or 19 deduction in determining federal gross income of any loss realized from 20 the sale or other disposition of an interest in another unincorporated 21 entity if, and to the extent that, such loss is attributable to activ- 22 ities of such other unincorporated entity not deemed an unincorporated 23 business carried on by the taxpayer pursuant to the provisions of subdi- 24 vision (c) of section 11-502 of this chapter. 25 (15) Notwithstanding any other provision of this chapter to the 26 contrary, the amount allowed as an exclusion or deduction in determining 27 federal gross income of any loss realized from the holding, leasing or 28 managing of real property if, and to the extent that, such holding, 29 leasing or managing of real property is not deemed an unincorporated 30 business carried on by the taxpayer pursuant to the provisions of subdi- 31 vision (d) of section 11-502 of this chapter. 32 (16) Notwithstanding any other provision of this chapter to the 33 contrary, the amount allowed as an exclusion or deduction in determining 34 federal gross income of any loss realized from the provision by an 35 owner, lessee or fiduciary holding, leasing or managing real property of 36 the service of parking, garaging or storing of motor vehicles on a 37 monthly or longer term basis to tenants at such real property if, and to 38 the extent that, the provision of such services to such tenants is not 39 deemed an unincorporated business carried on by the taxpayer pursuant to 40 the provisions of subdivision (d) of section 11-502 of this chapter. 41 (17) For taxable years beginning in two thousand nineteen and two 42 thousand twenty, the amount of the increase in the federal interest 43 deduction allowed pursuant to section 163(j)(10) of the internal revenue 44 code. 45 (18) Notwithstanding any other provision of this chapter to the 46 contrary, for taxable years beginning before January first, two thousand 47 twenty-one, the amount of increase in the federal deduction allowed 48 pursuant to any amendment to section 461(l) of the internal revenue code 49 made after March first, two thousand twenty. 50 (c) Modifications reducing federal gross income. There shall be 51 subtracted from federal gross income of the business the following items 52 attributable to the business: 53 (1) Interest income on obligations of the United States and its 54 possessions to the extent includible in gross income for federal income 55 tax purposes;

S. 8578 372 1 (2) Interest or dividend income on obligations or securities of any 2 authority, commission or instrumentality of the United States to the 3 extent includible in gross income for federal income tax purposes but 4 exempt from state or local income taxes under the laws of the United 5 States; 6 (3) Interest or dividend income on obligations or securities to the 7 extent exempt from income tax under the laws of the city or this state 8 authorizing the issuance of such obligations or securities but includi- 9 ble in gross income for federal income tax purposes; 10 (3-a) Fifty percent of dividends to the extent includible in gross 11 income for federal income tax purposes and not subtracted under para- 12 graph two or three of this subdivision, provided, however, that there 13 shall be no subtraction pursuant to this paragraph for any portion of a 14 dividend from stock with respect to which a dividend deduction would be 15 disallowed by subsection (c) of section two hundred forty-six of the 16 internal revenue code if the unincorporated business were a corporation; 17 (4) The amount of any refund or credit for overpayment of income taxes 18 imposed by the city, this state or any other taxing jurisdiction, or the 19 tax imposed by article thirteen-A of the tax law, to the extent properly 20 included in gross income for federal tax purposes; 21 (5) With respect to gain derived from the sale or other disposition of 22 any property acquired prior to January first, nineteen hundred sixty- 23 six, except property described in subsections one and four of section 24 twelve hundred twenty-one of the internal revenue code, the difference 25 between: 26 (a) the amount of gain included in federal gross income with respect 27 to each such property, and 28 (b) the amount of gain, if smaller than the amount described in 29 subparagraph (a) of this paragraph, that would be included in federal 30 gross income with respect to each such property if the federal adjusted 31 basis of such property on the date of the sale or other disposition had 32 been equal to its fair market value on January first, nineteen hundred 33 sixty-six, or the date of its sale or other disposition prior to January 34 first, nineteen hundred sixty-six, plus or minus all adjustments to 35 basis made with respect to such property for federal income tax purposes 36 for periods on and after January first, nineteen hundred sixty-six; 37 provided, however, that the total modification provided by this subpara- 38 graph shall not exceed the taxpayer's net gain from the sale or other 39 disposition of all such property. 40 (6) For taxable years beginning after December thirty-first, nineteen 41 hundred eighty-one, except with respect to property which is a qualified 42 mass commuting vehicle described in subparagraph (D) of paragraph eight 43 of subsection (f) of section one hundred sixty-eight of the internal 44 revenue code, relating to qualified mass commuting vehicles, any amount 45 properly includible in federal gross income solely as a result of an 46 election made pursuant to the provisions of such paragraph eight as it 47 was in effect for agreements entered into prior to January first, nine- 48 teen hundred eighty-four. 49 (7) Upon the disposition of property to which subdivision (o) of 50 section 11-507 of this chapter applies, the amount, if any, by which the 51 aggregate of the amounts described in subdivision (n) of section 11-507 52 of this chapter attributable to such property exceeds the aggregate of 53 the amounts described in subdivision (o) of section 11-507 of this chap- 54 ter attributable to such property. 55 (8) Notwithstanding any other provision of this chapter to the contra- 56 ry, the amount of any income or gain, to the extent includible in gross

S. 8578 373 1 income for federal income tax purposes, realized from the holding, leas- 2 ing or managing of real property if, and to the extent that, such hold- 3 ing, leasing or managing of real property is not deemed an unincorporat- 4 ed business carried on by the taxpayer pursuant to the provisions of 5 subdivision (d) of section 11-502 of this chapter. 6 (9) Notwithstanding any other provision of this chapter to the contra- 7 ry, the amount of any income or gain, to the extent includible in gross 8 income for federal income tax purposes, including but not limited to, 9 dividends, interest, payments with respect to securities loans, income 10 from notional principal contracts, or income and gains, other than as a 11 dealer, from the holding, sale, disposition, assumption, offset or 12 termination of a position in, property, as defined in paragraph one of 13 subdivision (c) of section 11-502 of this chapter, or other substantial- 14 ly similar income from ordinary and routine trading or investment activ- 15 ity to the extent determined by the commissioner of finance, realized in 16 connection with activities described in paragraph two of subdivision (c) 17 of section 11-502 of this chapter if, and to the extent that, such 18 activities are not deemed an unincorporated business carried on by the 19 taxpayer pursuant to the provisions of subdivision (c) of section 11-502 20 of this chapter. 21 (10) Notwithstanding any other provision of this chapter to the 22 contrary, in the case of a taxpayer that is an unincorporated entity 23 described in subparagraph (B) of paragraph four of subdivision (c) of 24 section 11-502 of this chapter, the amount of any income or gain, to the 25 extent includible in gross income for federal income tax purposes, real- 26 ized from the sale or other disposition of an interest in another unin- 27 corporated entity if, and to the extent that, such income or gain is 28 attributable to activities of such other unincorporated entity not 29 deemed an unincorporated business carried on by the taxpayer pursuant to 30 the provisions of subdivision (c) of section 11-502 of this chapter. 31 (11) Notwithstanding any other provision of this chapter to the 32 contrary, the amount of any income or gain, to the extent includible in 33 gross income for federal income tax purposes, realized from the 34 provision by an owner, lessee or fiduciary holding, leasing or managing 35 real property of the service of parking, garaging or storing of motor 36 vehicles on a monthly or longer term basis to tenants at such real prop- 37 erty if, and to the extent that, the provision of such services to such 38 tenants is not deemed an unincorporated business pursuant to the 39 provisions of subdivision (d) of section 11-502 of this chapter. 40 (12) The amount of any grant received through either the COVID-19 41 pandemic small business recovery grant program, pursuant to section 42 sixteen-ff of the New York state urban development corporation act, or 43 the small business resilience grant program administered by the depart- 44 ment of small business services, to the extent the amount of either such 45 grant is included in federal taxable income. 46 (d) Upon the disposition of property to which subdivisions (t) and (u) 47 of section 11-507 of this chapter apply, the amount of any gain or loss 48 includible in entire net income shall be adjusted to reflect the modifi- 49 cations provided in such subdivisions attributable to such property. 50 (e) Related members expense add back. (1) Definitions. (A) Related 51 member. "Related member" means a related person as defined in subpara- 52 graph (c) of paragraph three of subsection (b) of section four hundred 53 sixty-five of the internal revenue code, except that "fifty percent" 54 shall be substituted for "ten percent". 55 (B) Effective rate of tax. "Effective rate of tax" means, as to any 56 city, the maximum statutory rate of tax imposed by the city on or meas-

S. 8578 374 1 ured by a related member's net income multiplied by the apportionment 2 percentage, if any, applicable to the related member under the laws of 3 said jurisdiction. For purposes of this definition, the effective rate 4 of tax as to any city is zero where the related member's net income tax 5 liability in said city is reported on a combined or consolidated return 6 including both the taxpayer and the related member where the reported 7 transactions between the taxpayer and the related member are eliminated 8 or offset. Also, for purposes of this definition, when computing the 9 effective rate of tax for a city in which a related member's net income 10 is eliminated or offset by a credit or similar adjustment that is 11 dependent upon the related member either maintaining or managing intan- 12 gible property or collecting interest income in such city, the maximum 13 statutory rate of tax imposed by such city shall be decreased to reflect 14 the statutory rate of tax that applies to the related member as effec- 15 tively reduced by such credit or similar adjustment. 16 (C) Royalty payments. Royalty payments are payments directly connected 17 to the acquisition, use, maintenance or management, ownership, sale, 18 exchange, or any other disposition of licenses, trademarks, copyrights, 19 trade names, trade dress, service marks, mask works, trade secrets, 20 patents and any other similar types of intangible assets as determined 21 by the commissioner of finance, and include amounts allowable as inter- 22 est deductions under section one hundred sixty-three of the internal 23 revenue code to the extent such amounts are directly or indirectly for, 24 related to or in connection with the acquisition, use, maintenance or 25 management, ownership, sale, exchange or disposition of such intangible 26 assets. 27 (D) Valid business purpose. A valid business purpose is one or more 28 business purposes, other than the avoidance or reduction of taxation, 29 which alone or in combination constitute the primary motivation for some 30 business activity or transaction, which activity or transaction changes 31 in a meaningful way, apart from tax effects, the economic position of 32 the taxpayer. The economic position of the taxpayer includes an increase 33 in the market share of the taxpayer, or the entry by the taxpayer into 34 new business markets. 35 (2) Royalty expense add backs. (A) For the purpose of computing unin- 36 corporated business entire net income, a taxpayer must add back royalty 37 payments directly or indirectly paid, accrued, or incurred in connection 38 with one or more direct or indirect transactions with one or more 39 related members during the taxable year to the extent deductible in 40 calculating federal taxable income. 41 (B) Exceptions. (i) The adjustment required in this subdivision shall 42 not apply to the portion of the royalty payment that the taxpayer estab- 43 lishes, by clear and convincing evidence of the type and in the form 44 specified by the commissioner of finance, meets all of the following 45 requirements: (I) the related member was subject to tax in this city or 46 another city within the United States or a foreign nation or some combi- 47 nation thereof on a tax base that included the royalty payment paid, 48 accrued or incurred by the taxpayer; (II) the related member during the 49 same taxable year directly or indirectly paid, accrued or incurred such 50 portion to a person that is not a related member; and (III) the trans- 51 action giving rise to the royalty payment between the taxpayer and the 52 related member was undertaken for a valid business purpose. 53 (ii) The adjustment required in this subdivision shall not apply if 54 the taxpayer establishes, by clear and convincing evidence of the type 55 and in the form specified by the commissioner of finance, that: (I) the 56 related member was subject to tax on or measured by its net income in

S. 8578 375 1 this city or another city within the United States, or some combination 2 thereof; (II) the tax base for said tax included the royalty payment 3 paid, accrued or incurred by the taxpayer; and (III) the aggregate 4 effective rate of tax applied to the related member in those jurisdic- 5 tions is no less than eighty percent of the statutory rate of tax that 6 applied to the taxpayer under section 11-503 of this chapter for the 7 taxable year. 8 (iii) The adjustment required in this subdivision shall not apply if 9 the taxpayer establishes, by clear and convincing evidence of the type 10 and in the form specified by the commissioner of finance, that: (I) the 11 royalty payment was paid, accrued or incurred to a related member organ- 12 ized under the laws of a country other than the United States; (II) the 13 related member's income from the transaction was subject to a comprehen- 14 sive income tax treaty between such country and the United States; (III) 15 the related member was subject to tax in a foreign nation on a tax base 16 that included the royalty payment paid, accrued or incurred by the 17 taxpayer; (IV) the related member's income from the transaction was 18 taxed in such country at an effective rate of tax at least equal to that 19 imposed by this city; and (V) the royalty payment was paid, accrued or 20 incurred pursuant to a transaction that was undertaken for a valid busi- 21 ness purpose and using terms that reflect an arm's length relationship. 22 (iv) The adjustment required in this subdivision shall not apply if 23 the taxpayer and the commissioner of finance agree in writing to the 24 application or use of alternative adjustments or computations. The 25 commissioner of finance may, in his or her discretion, agree to the 26 application or use of alternative adjustments or computations when he or 27 she concludes that in the absence of such agreement the income of the 28 taxpayer would not be properly reflected. 29 (f) Upon the disposition of property to which subdivisions (w) and (x) 30 of section 11-507 of this chapter apply, the amount of any gain or loss 31 includible in unincorporated business gross income shall be adjusted to 32 reflect the modifications provided in such subdivisions attributable to 33 such property. 34 § 11-507 Unincorporated business deductions. The unincorporated busi- 35 ness deductions of an unincorporated business means the items of loss 36 and deduction directly connected with or incurred in the conduct of the 37 business, which are allowable for federal income tax purposes for the 38 taxable year, including losses and deductions connected with any proper- 39 ty employed in the business, with the following modifications: 40 (a) A deduction shall be allowed for charitable contributions of the 41 unincorporated business, to the extent that such contributions would be 42 deductible for federal income tax purposes if made by a corporation, but 43 not in excess of five per centum of the amount by which the unincorpo- 44 rated business gross income exceeds the sum of (A) the unincorporated 45 business deductions computed without the benefit of any deduction for 46 charitable contributions and (B) the deduction allowed under subdivision 47 (b) of section 11-509 of this chapter, where the election permitted by 48 such subdivision has been exercised. 49 (b) (1) A deduction shall be allowed for net operating losses incurred 50 by the unincorporated business, except as otherwise provided by para- 51 graph two of this subdivision, in an amount computed in the same manner 52 as the net operating loss deduction which would be allowed for the taxa- 53 ble year for federal income tax purposes if the unincorporated business 54 were an individual taxpayer, but determined solely by reference to the 55 unincorporated business gross income and unincorporated business 56 deductions, allocated to the city, of the unincorporated business;

S. 8578 376 1 provided, however, that such net operating loss deduction which would be 2 allowed for the taxable year for federal income tax purposes shall for 3 purposes of this paragraph be determined as if the unincorporated busi- 4 ness had elected under section one hundred seventy-two of the internal 5 revenue code to relinquish the entire carryback period with respect to 6 net operating losses, except with respect to the first ten thousand 7 dollars of each of such losses, sustained during taxable years ending 8 after June thirtieth, nineteen hundred eighty-nine. Such deduction shall 9 not include any net operating loss sustained during any taxable year 10 beginning prior to January first, nineteen hundred sixty-six and for the 11 purposes of this paragraph a net operating loss shall be determined 12 without regard to any deductions allowed pursuant to subdivision (b) of 13 section 11-509 of this chapter and any net operating loss for a taxable 14 year beginning in nineteen hundred eighty-one shall be computed without 15 regard to the deduction allowed with respect to recovery property under 16 section one hundred sixty-eight of the internal revenue code; in lieu of 17 such deduction, a taxpayer shall be allowed for such taxable year with 18 respect to such property the depreciation deduction allowable under 19 section one hundred sixty-seven of such internal revenue code as such 20 section was in full force and effect on December thirty-first, nineteen 21 hundred eighty. 22 (2) In the case of a partnership, no net operating loss carryback or 23 carryover to any taxable year shall be allowed unless one or more of the 24 partners during such taxable year were persons having a proportionate 25 interest or interests, amounting to at least eighty percent of all such 26 interests, in the unincorporated business gross income and unincorporat- 27 ed business deductions of the partnership which sustained the loss for 28 which a carryback or carryover is claimed. In such event, the carryback 29 or carryover allowable on account of such loss shall not exceed the 30 percentage of the amount otherwise allowable, determined by dividing (A) 31 the sum of the proportionate interests in the unincorporated business 32 gross income and unincorporated business deductions of the partnership, 33 for the year to which the loss is carried back or carried over, attrib- 34 utable to such partners, by (B) the sum of such proportionate interests 35 owned by all partners for such taxable year. The amount by which the 36 carryback or carryover otherwise allowable exceeds the amount allowable 37 pursuant to the preceding sentence shall not be a carryback or carryover 38 to any other taxable year. 39 (3) Notwithstanding any other provision of this chapter to the contra- 40 ry, for taxable years beginning before January first, two thousand twen- 41 ty-one, any amendment to section one hundred seventy-two of the internal 42 revenue code made after March first, two thousand twenty shall not apply 43 to this chapter. 44 (c) No deduction shall be allowed, except as provided in section 45 11-509 of this chapter for amounts paid or incurred to a proprietor or 46 partner for services or for use of capital. 47 (d) No deduction shall be allowed for income taxes imposed by the 48 city, this state or any other taxing jurisdiction, or the tax imposed by 49 article thirteen-A of the tax law. 50 (e) No deduction shall be allowed for (A) interest on indebtedness 51 incurred or continued to purchase or carry obligations or securities the 52 interest on which is exempt from tax under this chapter; (B) expenses 53 paid or incurred for the production or collection of such income or the 54 management, conservation or maintenance of property held for the 55 production of such income; or (C) the amortizable bond premium on any 56 bond the interest income from which is so exempt.

S. 8578 377 1 (f) No deduction shall be allowed in respect of the excess of net 2 long-term capital gain over net short-term capital loss, but capital 3 losses incurred in the unincorporated business shall be treated as ordi- 4 nary losses and shall be allowed in full. 5 (g) In the case of a taxpayer who has exercised the election permitted 6 by subdivision (b) of section 11-509 of this chapter, no deduction shall 7 be allowed for expenditures with reference to the property to which such 8 election relates, or for depreciation of such property, except as 9 permitted by said subdivision. 10 (h) A deduction shall be allowed, to the extent not allowable for 11 federal income tax purposes, for (A) interest on indebtedness incurred 12 or continued to purchase or carry obligations or securities the interest 13 on which is subject to tax under this chapter but exempt from federal 14 income tax; (B) ordinary and necessary expenses paid or incurred during 15 the taxable year for the production or collection of such income or the 16 management, conservation or maintenance of property held for the 17 production of such income; and (C) the amortizable bond premium for the 18 taxable year on any bond the interest on which is subject to tax under 19 this chapter but exempt from federal income tax. 20 (i) At the election of the taxpayer, a deduction shall be allowed for 21 expenditures paid or incurred during the taxable year for the 22 construction, reconstruction, erection or improvement of industrial 23 waste treatment facilities and air pollution control facilities. 24 (1) (A) The term "industrial waste treatment facilities" shall mean 25 facilities for the treatment, neutralization or stabilization of indus- 26 trial waste, as the term "industrial waste" is defined in section 27 17-0105 of the environmental conservation law, from a point immediately 28 preceding the point of such treatment, neutralization or stabilization 29 to the point of disposal, including the necessary pumping and transmit- 30 ting facilities, but excluding such facilities installed for the primary 31 purpose of salvaging materials which are usable in the manufacturing 32 process or are marketable. 33 (B) The term "air pollution control facilities" shall mean facilities 34 which remove, reduce, or render less noxious air contaminants emitted 35 from an air contamination source, as the terms "air contaminant" and 36 "air contamination source" are defined in section 19-0107 of the envi- 37 ronmental conservation law, from a point immediately preceding the point 38 of such removal, reduction or rendering to the point of discharge of 39 air, meeting emission standards as established by the air pollution 40 control board, but excluding such facilities installed for the primary 41 purpose of salvaging materials which are usable in the manufacturing 42 process or are marketable and excluding those facilities which rely for 43 their efficacy on dilution, dispersion or assimilation of air contam- 44 inants in the ambient air after emission. 45 (2) However, such deduction shall be allowed only (A) with respect to 46 tangible property which is depreciable, pursuant to section one hundred 47 sixty-seven of the internal revenue code, having a situs in the city and 48 used in the taxpayer's trade or business, the construction, recon- 49 struction, erection or improvement of which, in the case of industrial 50 waste treatment facilities, is initiated on or after January first, 51 nineteen hundred sixty-six, and only for expenditures paid or incurred 52 prior to January first, nineteen hundred seventy-two, or which, in the 53 case of air pollution control facilities, is initiated on or after Janu- 54 ary first, nineteen hundred sixty-six, and 55 (B) on condition that such facilities have been certified by the state 56 commissioner of environmental conservation or his or her designated

S. 8578 378 1 representative, in the same manner as provided in either section 17-0707 2 or 19-0309 of the environmental conservation law, as applicable, as 3 complying with the provision of the environmental conservation law, the 4 sanitary code and regulations, permits or orders promulgated pursuant 5 thereto, and 6 (C) on condition that for the taxable year and all succeeding taxable 7 years, no deduction for such expenditures or for depreciation of the 8 same property allowed for federal income tax purposes shall be allowed 9 under this chapter, except to the extent that the basis of the property 10 may be attributable to factors other than such expenditures, or in case 11 a deduction is allowable pursuant to this subdivision, for only a part 12 of such expenditures, on condition that any deduction allowed for feder- 13 al income tax purposes for such expenditures or for depreciation of the 14 same property be proportionately reduced in computing unincorporated 15 business deductions for the taxable year and all succeeding taxable 16 years, and 17 (D) where the election provided for in subdivision (b) of section 18 11-509 of this chapter has not been exercised in respect to the same 19 property. 20 (3) (A) If expenditures in respect to an industrial waste treatment 21 facility or an air pollution control facility have been deducted as 22 provided herein and if within ten years from the end of the taxable year 23 in which such deduction was allowed such property or any part thereof is 24 used for the primary purpose of salvaging materials which are usable in 25 the manufacturing process or are marketable, the taxpayer shall report 26 such change of use in its return for the first taxable year during which 27 it occurs, and the commissioner of finance may recompute the tax for the 28 year or years for which such deduction was allowed and any carryback or 29 carryover year, and may assess any additional tax resulting from such 30 recomputation within the time fixed by paragraph eight of subdivision 31 (c) of section 11-523 of this chapter. 32 (B) If a deduction is allowed as herein provided for expenditures paid 33 or incurred during any taxable year on the basis of a temporary certif- 34 icate of compliance issued pursuant to the public health law, and if the 35 taxpayer fails to obtain a permanent certificate of compliance upon 36 completion of the facilities with respect to which such temporary 37 certificate was issued, the taxpayer shall report such failure in its 38 report for the taxable year during which such facilities are completed, 39 and the commissioner of finance may recompute the tax for the year or 40 years for which such deduction was allowed and any carryback or carry- 41 over year, and may assess any additional tax resulting from such recom- 42 putation within the time fixed by paragraph eight of subdivision (c) of 43 section 11-523 of this chapter. 44 (4) In any taxable year when property is sold or otherwise disposed 45 of, with respect to which a deduction has been allowed pursuant to this 46 subdivision, such deduction shall be disregarded in computing gain or 47 loss, and the gain or loss on the sale or other disposition of such 48 property shall be the gain or loss allowable for federal income tax 49 purposes for such taxable year. 50 (j) In the case of mines, oil and gas wells and other natural depos- 51 its, no deduction of any allowance for percentage depletion pursuant to 52 section six hundred thirteen or section six hundred thirteen A of the 53 internal revenue code of nineteen hundred fifty-four, as amended, shall 54 be allowed. However, an allowance for depletion with respect to such 55 property shall be deductible in the amount which would be allowable 56 under section six hundred eleven of such internal revenue code if such

S. 8578 379 1 deduction were computed without reference to such section six hundred 2 thirteen or section six hundred thirteen A of such code. With respect to 3 the computation of depletion pursuant to this section, the basis for 4 such computation for taxable years beginning in nineteen hundred seven- 5 ty-two shall be the federal basis. For subsequent taxable years, the 6 basis of such computation shall be reduced only by the deduction for the 7 allowance for depletion deductible pursuant to this section. In any 8 taxable year when any such property is sold or otherwise disposed of, 9 with respect to which a deduction has been allowed pursuant to this 10 subdivision, the gain or loss thereon entering into the computation of 11 federal taxable income shall be disregarded in computing unincorporated 12 business taxable income and there shall be added to or subtracted from 13 federal gross income, so modified, the gain or loss upon such sale or 14 other disposition. In computing such gain or loss, the basis of the 15 property sold or disposed of shall be adjusted to reflect the deduction 16 allowed with respect to such property pursuant to this subdivision. 17 (k) A deduction shall be allowed for that portion of wages and sala- 18 ries paid or incurred for the taxable year for which a deduction is not 19 allowed pursuant to the provisions of section two hundred eighty-C of 20 the internal revenue code. 21 (l) For taxable years beginning after December thirty-first, nineteen 22 hundred eighty-one, except with respect to property which is a qualified 23 mass commuting vehicle described in subparagraph (D) of paragraph eight 24 of subsection (f) of section one hundred sixty-eight of the internal 25 revenue code, relating to qualified mass commuting vehicles, a deduction 26 shall be allowed for any amount which the taxpayer could have excluded 27 for purposes of this chapter had it not made the election provided for 28 in such paragraph eight as it was in effect for agreements entered into 29 prior to January first, nineteen hundred eighty-four. 30 (m) For taxable years beginning after December thirty-first, nineteen 31 hundred eighty-one, except with respect to property which is a qualified 32 mass commuting vehicle described in subparagraph (D) of paragraph eight 33 of subsection (f) of section one hundred sixty-eight of the internal 34 revenue code, relating to qualified mass commuting vehicles, no 35 deduction shall be allowed for any amount deductible for federal income 36 tax purposes solely as a result of an election made pursuant to the 37 provisions of such paragraph eight as it was in effect for agreements 38 entered into prior to January first, nineteen hundred eighty-four. 39 (n) In the case of property placed in service in taxable years begin- 40 ning before nineteen hundred ninety-four, for taxable years beginning 41 after December thirty-first, nineteen hundred eighty-one, except with 42 respect to property subject to the provisions of section two hundred 43 eighty-F of the internal revenue code and property subject to the 44 provisions of section one hundred sixty-eight of the internal revenue 45 code which is placed in service in this state in taxable years beginning 46 after December thirty-first, nineteen hundred eighty-four, no deduction 47 shall be allowed for the amount allowable as a deduction determined 48 under section one hundred sixty-eight of the internal revenue code. 49 (o) In the case of property placed in service in taxable years begin- 50 ning before nineteen hundred ninety-four, for taxable years beginning 51 after December thirty-first, nineteen hundred eighty-one, except with 52 respect to property subject to the provisions of section two hundred 53 eighty-F of the internal revenue code and property subject to the 54 provisions of section one hundred sixty-eight of the internal revenue 55 code which is placed in service in this state in taxable years beginning 56 after December thirty-first, nineteen hundred eighty-four, and provided

S. 8578 380 1 a deduction has not been disallowed pursuant to subdivision (m) of this 2 section, a taxpayer shall be allowed with respect to property which is 3 subject to the provisions of section one hundred sixty-eight of the 4 internal revenue code the depreciation deduction allowable under section 5 one hundred sixty-seven of the internal revenue code as such section 6 would have applied to property placed in service on December thirty- 7 first, nineteen hundred eighty. 8 (p) Notwithstanding any other provision of this chapter to the contra- 9 ry, no deduction shall be allowed for interest, depreciation or any 10 other expense directly or indirectly attributable to the holding, leas- 11 ing or managing of real property or to income or gain therefrom if, and 12 to the extent that, such holding, leasing or managing of real property 13 is not deemed an unincorporated business carried on by the taxpayer 14 pursuant to the provisions of subdivision (d) of section 11-502 of this 15 chapter. 16 (q) Notwithstanding any other provision of this chapter to the contra- 17 ry, no deduction shall be allowed for any expenses directly or indirect- 18 ly attributable to activities described in paragraph two of subdivision 19 (c) of section 11-502 of this chapter if, and to the extent that, such 20 activities are not deemed an unincorporated business carried on by the 21 taxpayer pursuant to the provisions of subdivision (c) of section 11-502 22 of this chapter. 23 (r) Notwithstanding any other provision of this chapter to the contra- 24 ry, in the case of a taxpayer that is an unincorporated entity described 25 in subparagraph (B) of paragraph four of subdivision (c) of section 26 11-502 of this chapter, no deduction shall be allowed for any losses or 27 expenses directly or indirectly attributable to the sale or other dispo- 28 sition of an interest in another unincorporated entity if, and to the 29 extent that, such losses or expenses are attributable to activities of 30 such other unincorporated entity not deemed an unincorporated business 31 carried on by the taxpayer pursuant to the provisions of subdivision (c) 32 of section 11-502 of this chapter. 33 (s) Notwithstanding any other provision of this chapter to the contra- 34 ry, no deduction shall be allowed for interest, depreciation or any 35 other expense directly or indirectly attributable to the provision by an 36 owner, lessee or fiduciary holding, leasing or managing real property of 37 the service of parking, garaging or storing of motor vehicles on a 38 monthly or longer term basis to tenants at such real property if, and to 39 the extent that, the provision of such services to such tenants is not 40 deemed an unincorporated business pursuant to the provisions of subdivi- 41 sion (d) of section 11-502 of this chapter. 42 (t) For taxable years ending after September tenth, two thousand one, 43 in the case of qualified property described in paragraph two of 44 subsection k of section one hundred sixty-eight of the internal revenue 45 code, other than qualified New York Liberty Zone property described in 46 paragraph two of subsection b of section fourteen hundred L of the 47 internal revenue code, without regard to clause (i) of subparagraph (C) 48 of such paragraph, no deduction shall be allowed for the amount allow- 49 able as a deduction under section one hundred sixty-seven of the inter- 50 nal revenue code. 51 (u) For taxable years ending after September tenth, two thousand one, 52 in the case of qualified property described in paragraph two of 53 subsection k of section one hundred sixty-eight of the internal revenue 54 code other than qualified New York Liberty Zone property described in 55 paragraph two of subsection b of section fourteen hundred L of the 56 internal revenue code, without regard to clause (i) of subparagraph (C)

S. 8578 381 1 of such paragraph, a deduction shall be allowed with respect to such 2 property equal to the depreciation deduction allowable under section one 3 hundred sixty-seven of the internal revenue code as such section would 4 have applied to such property had it been acquired by the taxpayer on 5 September tenth, two thousand one, provided, however, that for taxable 6 years beginning on or after January first, two thousand four, in the 7 case of a passenger motor vehicle or a sport utility vehicle subject to 8 the provisions of subdivision (w) of this section, the limitation under 9 clause (i) of subparagraph (A) of paragraph one of subdivision (a) of 10 section two hundred eighty-F of the internal revenue code applicable to 11 the amount allowed as a deduction under this paragraph shall be deter- 12 mined as of the date such vehicle was placed in service and not as of 13 September tenth, two thousand one. 14 (v) For taxable years beginning on or after January first, two thou- 15 sand four, in the case of a taxpayer that is not an eligible farmer as 16 defined in subsection (n) of section six hundred six of the tax law, no 17 deduction shall be allowed for the amounts allowable as a deduction 18 under sections one hundred seventy-nine, one hundred sixty-seven and one 19 hundred sixty-eight of the internal revenue code with respect to a sport 20 utility vehicle that is not a passenger automobile as defined in para- 21 graph five of subsection (d) of section two hundred eighty-F of the 22 internal revenue code. 23 (w) For taxable years beginning on or after January first, two thou- 24 sand four, in the case of a taxpayer that is not an eligible farmer as 25 defined in subsection (n) of section six hundred six of the tax law, a 26 deduction shall be allowed with respect to a sport utility vehicle that 27 is not a passenger automobile as defined in paragraph five of subsection 28 (d) of section two hundred eighty-F of the internal revenue code equal 29 to the amounts allowable as a deduction under sections one hundred 30 seventy-nine, one hundred sixty-seven and one hundred sixty-eight of the 31 internal revenue code, determined as if such sport utility vehicle were 32 a passenger automobile as defined in such paragraph five. 33 § 11-508 Allocation to the city. (a) General; allocation of business 34 income. If an unincorporated business is carried on both within and 35 without the city, as determined under regulations of the commissioner of 36 finance, there shall be allocated to the city, in the manner provided in 37 subdivision (b), (c) or (d) of this section, a fair and equitable 38 portion of its business income. For taxable years beginning before July 39 first, nineteen hundred ninety-six, if the unincorporated business has 40 no regular place of business outside the city, all of such business 41 income shall be allocated to the city. 42 (b) (1) Allocation by taxpayer's books. For taxable years beginning 43 before January first, two thousand five, the portion allocable to the 44 city may be determined from the books of the business if the methods 45 used in keeping such books are approved by the commissioner of finance 46 as fairly and equitably reflecting the income from the city. 47 (2)(i) If a taxpayer determines the portion of business income to be 48 allocated to the city using the method prescribed in paragraph one of 49 this subdivision on a timely filed original return with respect to each 50 of the two taxable years, each of which must consist of twelve months, 51 immediately preceding the taxpayer's first taxable year beginning on or 52 after January first, two thousand five, the taxpayer may make a one-time 53 election to continue to use that method for taxable years beginning on 54 or after January first, two thousand five and before January first, two 55 thousand twelve. Such election shall be made by using the method 56 prescribed in paragraph one of this subdivision on an original timely

S. 8578 382 1 filed return with respect to the first taxable year beginning on or 2 after January first, two thousand five and before January first, two 3 thousand six. Such election may not be made, or if made, shall be deemed 4 revoked as of the beginning of the taxable year if, for either of the 5 two taxable years immediately preceding the year in which the election 6 is made, the commissioner of finance has determined the methods used in 7 keeping such books do not fairly and equitably reflect the income from 8 the city. 9 (ii) (A) A taxpayer that has made the election provided for in subpar- 10 agraph (i) of this paragraph may revoke it by filing an original or 11 amended return using an allocation method permitted by this section 12 other than the method prescribed in paragraph one of this subdivision 13 unless the commissioner of finance has determined that such method does 14 not fairly and equitably reflect the income from the city. 15 (B) The election provided for in subparagraph (i) of this paragraph 16 shall be deemed to have been revoked as of the beginning of the taxable 17 year if, for any taxable year during which the election is intended to 18 be in effect, the commissioner of finance has determined that the meth- 19 ods used in keeping the taxpayer's books do not fairly and equitably 20 reflect the income from the city. 21 (C) In the case of a taxpayer that is a partnership or other unincor- 22 porated entity, the election provided for in subparagraph (i) of this 23 paragraph shall be deemed to have been revoked as of the beginning of 24 the taxable year unless one or more of the persons having a propor- 25 tionate interest or interests, amounting to more than fifty percent of 26 all such interests, in the taxpayer's unincorporated business gross 27 income and unincorporated business deductions for such taxable year were 28 persons having a proportionate interest or interests, amounting to more 29 than fifty percent of all such interests, in the taxpayer's unincorpo- 30 rated business gross income and unincorporated business deductions at 31 the end of the taxpayer's last taxable year beginning before January 32 first, two thousand five. For purposes of this clause, a transfer of an 33 ownership interest in unincorporated business gross income or unincorpo- 34 rated business deductions upon the death of a partner or owner to such 35 deceased partner's or owner's estate shall be disregarded but transfers 36 by such decedent's estate shall not be disregarded. 37 (D) Once the election provided for in subparagraph (i) of this para- 38 graph has been revoked by the taxpayer pursuant to clause (A) or deemed 39 revoked pursuant to clauses (B) or (C) of this subparagraph, the taxpay- 40 er shall be barred from using the method prescribed in paragraph one of 41 this subdivision for the taxable year in which the election has been 42 revoked or deemed revoked and any subsequent taxable year. 43 (c) Allocation by formula. If subdivision (b) does not apply to the 44 taxpayer, the portion allocable to the city shall be determined by 45 multiplying (A) the business income by (B) a business allocation 46 percentage to be determined by adding together the percentages computed 47 under paragraphs one, two and three of this subdivision, and dividing 48 the result by the number of percentages; provided, however, that for 49 taxable years beginning on or after July first, nineteen hundred nine- 50 ty-six, a taxpayer that is a "manufacturing business," as defined in 51 subdivision (g) of this section, may determine its business allocation 52 percentage as provided in such subdivision (g): 53 (1) Property percentage. The percentage computed by dividing (A) the 54 average of the value, at the beginning and end of the taxable year, of 55 real and tangible personal property connected with the unincorporated 56 business and located within the city, by (B) the average of the value,

S. 8578 383 1 at the beginning and end of the taxable year, of all real and tangible 2 personal property connected with the unincorporated business and located 3 both within and without the city. For this purpose, for taxable years 4 beginning before January first, two thousand five, real property shall 5 include real property rented to the unincorporated business and, for 6 this purpose, for taxable years beginning on and after January first, 7 two thousand five, real and tangible personal property shall include 8 real and tangible personal property rented to the unincorporated busi- 9 ness and the value of such real and tangible personal property rented to 10 the unincorporated business shall mean the product of (i) eight and (ii) 11 the gross rents payable for the rental of such property during the taxa- 12 ble year. 13 (2) Payroll percentage. The percentage computed by dividing (A) the 14 total wages, salaries and other personal service compensation paid or 15 incurred during the taxable year to employees in connection with the 16 unincorporated business carried on within the city, by (B) the total of 17 all wages, salaries and other personal service compensation paid or 18 incurred during the taxable year to employees in connection with the 19 unincorporated business carried on both within and without the city. 20 (3) Gross income percentage. The percentage computed by dividing (A) 21 the gross sales or charges for services performed by or through an agen- 22 cy located within the city, by (B) the total of all gross sales or 23 charges for services performed within and without the city. The sales or 24 charges to be allocated to the city shall include all sales negotiated 25 or consummated, and charges for services performed, by an employee, 26 agent, agency or independent contractor chiefly situated at, connected 27 by contract or otherwise with, or sent out from, offices of the unincor- 28 porated business, or other agencies, situated within the city; provided, 29 however, that for taxable years beginning on or after July first, nine- 30 teen hundred ninety-six, sales of tangible personal property shall not 31 be allocated to the city as provided in this paragraph, but shall be 32 allocated to the city only where shipments are made to points within the 33 city, and provided, further, that: 34 (A) for taxable years beginning on or after July first, two thousand 35 five, for taxpayers having gross receipts for the taxable year, deter- 36 mined without regard to any deductions, of less than one hundred thou- 37 sand dollars, charges for services performed shall be allocated to the 38 city to the extent that the services are performed within the city; 39 (B) for taxable years beginning on or after July first, two thousand 40 six, for taxpayers having gross receipts for the taxable year, deter- 41 mined without regard to any deductions, of less than three hundred thou- 42 sand dollars, charges for services performed shall be allocated to the 43 city to the extent that the services are performed within the city; and 44 (C) for taxable years beginning on or after July first, two thousand 45 seven, for all other taxpayers, charges for services performed shall be 46 allocated to the city to the extent that the services are performed 47 within the city. 48 (d) Other allocation methods. The portion allocable to the city shall 49 be determined in accordance with rules and regulations of the commis- 50 sioner of finance if it shall appear to the commissioner of finance that 51 the income from the city is not fairly and equitably reflected under the 52 provisions of either subdivision (b) or subdivision (c) of this section. 53 (e) Special rules for real estate. Income and deductions from the 54 rental of real property, and gain and loss from the sale, exchange or 55 other disposition of real property, shall not be subject to allocation 56 under subdivision (b), (c), or (d) of this section, but shall be consid-

S. 8578 384 1 ered as entirely derived from or connected with the state, other than 2 this state, in which such property is located or, if such property is 3 located in this state, the political subdivision thereof. To the extent 4 that anything in this subdivision is inconsistent with any provision of 5 subdivision (d) of section 11-502, subdivision (c) of section 11-506 or 6 subdivision (p) of section 11-507 of this chapter, the provisions of 7 such subdivisions shall take precedence over the provisions of this 8 subdivision. 9 (e-1) Special rules for publishers and broadcasters. (1) Notwithstand- 10 ing anything in paragraph three of subdivision (c) of this section to 11 the contrary and except as provided in paragraph four of this subdivi- 12 sion, in the case of a taxpayer engaged in the business of publishing 13 newspapers or periodicals, there shall be allocated to the city, for 14 purposes of such paragraph three, the gross sales or charges for 15 services arising from sales of subscriptions to, and advertising 16 contained in, such newspapers or periodicals, to the extent that such 17 newspapers or periodicals are delivered to points within the city. 18 (2) Notwithstanding anything in paragraph three of subdivision (c) of 19 this section to the contrary and except as provided in paragraph four of 20 this subdivision, in the case of a taxpayer engaged in the business of 21 broadcasting radio or television programs, whether through the public 22 airwaves or by cable, direct or indirect satellite transmission, or any 23 other means of transmission, there shall be allocated to the city, for 24 purposes of such paragraph three, a portion of the gross sales or charg- 25 es for services arising from the sale of subscriptions to such programs 26 or from the broadcasting of such programs and of commercial messages in 27 connection therewith, such portion to be determined according to the 28 number of listeners or viewers within and without the city. 29 (3) Notwithstanding anything in this section, other than subdivision 30 (e) of this section, to the contrary, in the case of a taxpayer that is 31 substantially engaged, in the aggregate, in any combination of the busi- 32 nesses referred to in paragraphs one, two and four of this subdivision, 33 the portion of business income allocable to the city shall be determined 34 in accordance with the provisions of subdivision (c) of this section, as 35 modified by paragraphs one, two and four of this subdivision, unless the 36 commissioner of finance determines that the business income from the 37 city is not fairly and equitably reflected under the provisions of such 38 subdivision (c), in which event the provisions of subdivision (d) of 39 this section shall apply in determining the portion of business income 40 allocable to the city and the provisions of subdivision (b) of this 41 section shall not apply. For purposes of this subdivision, a taxpayer 42 shall be deemed to be substantially engaged in a business or businesses 43 referred to in such paragraphs one and two if more than ten percent of 44 the taxpayer's gross receipts for the taxable year are attributable to 45 such business or businesses. 46 (4) Notwithstanding anything in paragraph one or two of this subdivi- 47 sion to the contrary, for taxable years beginning on or after January 48 first, two thousand two, in the case of a taxpayer engaged in the busi- 49 ness of publishing newspapers or periodicals, or broadcasting radio or 50 television programs, whether through the public airwaves or by cable, 51 direct or indirect satellite transmission, or any other means of trans- 52 mission, there shall be allocated to the city, for purposes of paragraph 53 three of subdivision (c) of this section, the gross sales or charges to 54 subscribers located in the city for subscriptions to such newspapers, 55 periodicals, or program services. For purposes of this paragraph, a 56 subscriber shall be deemed located in the city if, in the case of news-

S. 8578 385 1 papers and periodicals, the mailing address for the subscription is 2 within the city and, in the case of program services, the billing 3 address for the subscription is within the city. For purposes of this 4 clause, "subscriber" shall mean a member of the general public who 5 receives such newspapers, periodicals or program services and does not 6 further distribute them. 7 (e-2) Rules for receipts from certain services to investment compa- 8 nies. (1) For taxable years beginning on or after January first, two 9 thousand one, for purposes of paragraph three of subdivision (c) of this 10 section, the portion of receipts received from an investment company 11 arising from the sale of management, administration or distribution 12 services to such investment company determined in accordance with para- 13 graph two of this subdivision shall be deemed to arise from services 14 performed within the city, such portion referred to herein as the Staten 15 Island city portion. 16 (2) The Staten Island city portion shall be the product of the total 17 of such receipts from the sale of such services and a fraction. The 18 numerator of that fraction is the sum of the monthly percentages, as 19 defined hereinafter, determined for each month of the investment compa- 20 ny's taxable year for federal income tax purposes which taxable year 21 ends within the taxable year of the taxpayer, but excluding any month 22 during which the investment company had no outstanding shares. The 23 monthly percentage for each such month is determined by dividing the 24 number of shares in the investment company which are owned on the last 25 day of the month by shareholders that are domiciled in the city by the 26 total number of shares in the investment company outstanding on that 27 date. The denominator of the fraction is the number of such monthly 28 percentages. 29 (3)(A) For purposes of this subdivision the term "domicile", in the 30 case of an individual shall have the meaning ascribed to it under chap- 31 ter seventeen of this title; an estate or trust is domiciled in the city 32 if it is a city resident estate or trust as defined in paragraph three 33 of subdivision (b) of section 11-1705 of the code of the proceeding 34 municipality; a business entity is domiciled in the city if the location 35 of the actual seat of management or control is in the city. It shall be 36 presumed that the domicile of a shareholder, with respect to any month, 37 is his, her or its mailing address on the records of the investment 38 company as of the last day of such month. 39 (B) For purposes of this subdivision, the term "investment company" 40 means a regulated investment company, as defined in section eight 41 hundred fifty-one of the internal revenue code, and a partnership to 42 which subdivision (a) of section seven thousand seven hundred four of 43 the internal revenue code applies, by virtue of paragraph three of 44 subdivision (c) of section seven thousand seven hundred four of such 45 code, and that meets the requirements of subdivision (b) of section 46 eight hundred fifty-one of such code. The provisions of this subpara- 47 graph shall be applied to the taxable year for federal income tax 48 purposes of the business entity that is asserted to constitute an 49 investment company that ends within the taxable year of the taxpayer. 50 (C) For purposes of this subdivision, the term "receipts from an 51 investment company" includes amounts received directly from an invest- 52 ment company as well as amounts received from the shareholders in such 53 investment company in their capacity as such. 54 (D) For purposes of this subdivision, the term "management services" 55 means the rendering of investment advice to an investment company, 56 making determinations as to when sales and purchases of securities are

S. 8578 386 1 to be made on behalf of an investment company, or the selling or 2 purchasing of securities constituting assets of an investment company, 3 and related activities, but only where such activity or activities are 4 performed pursuant to a contract with the investment company entered 5 into pursuant to subdivision (a) of section fifteen of the federal 6 investment company act of nineteen hundred forty, as amended. 7 (E) For purposes of this subdivision, the term "distribution services" 8 means the services of advertising, servicing investor accounts, includ- 9 ing redemptions, marketing shares or selling shares of an investment 10 company, but, in the case of advertising, servicing investor accounts, 11 including redemptions, or marketing shares, only where such service is 12 performed by a person who is, or was, in the case of a closed end compa- 13 ny, also engaged in the service of selling such shares. In the case of 14 an open end company, such service of selling shares must be performed 15 pursuant to a contract entered into pursuant to subdivision (b) of 16 section fifteen of the federal investment company act of nineteen 17 hundred forty, as amended. 18 (F) For purposes of this subdivision, the term "administration 19 services" includes clerical, accounting, bookkeeping, data processing, 20 internal auditing, legal and tax services performed for an investment 21 company but only if the provider of such service or services during the 22 taxable year in which such service or services are sold also sells 23 management or distribution services, as defined in this subdivision, to 24 such investment company. 25 (e-3) Rules for receipts for services performed by registered securi- 26 ties or commodities brokers or dealers. (1) For taxable years beginning 27 after two thousand eight, in the case of a taxpayer which is a regis- 28 tered securities or commodities broker or dealer, for purposes of para- 29 graph three of subdivision (c) of this section, the receipts specified 30 in subparagraphs (A) through (G) of this paragraph shall be deemed to 31 arise from services performed within the city to the extent set forth in 32 such subparagraphs. 33 (A) Receipts constituting brokerage commissions derived from the 34 execution of securities or commodities purchase or sales orders for the 35 accounts of customers shall be deemed to arise from services performed 36 at the mailing address in the records of the taxpayer of the customer 37 who is responsible for paying such commissions. 38 (B) Receipts constituting margin interest earned on behalf of broker- 39 age accounts shall be deemed to arise from services performed at the 40 mailing address in the records of the taxpayer of the customer who is 41 responsible for paying such margin interest. 42 (C) Gross income, including any accrued interest or dividends, from 43 principal transactions for the purchase or sale of stocks, bonds, 44 foreign exchange and other securities or commodities, including futures 45 and forward contracts, options and other types of securities or commod- 46 ities derivatives contracts, shall be deemed to arise from services 47 performed within the city either (i) to the extent that production cred- 48 its are awarded to branches, offices or employees of the taxpayer within 49 the city as a result of such principal transactions or (ii) if the 50 taxpayer so elects, to the extent that the gross proceeds from such 51 principal transactions, determined without deduction for any cost 52 incurred by the taxpayer to acquire the securities or commodities, are 53 generated from sales of securities or commodities to customers within 54 the city based upon the mailing addresses of such customers in the 55 records of the taxpayer. For purposes of clause (ii) of this subpara- 56 graph, the taxpayer shall separately calculate such gross income from

S. 8578 387 1 principal transactions by type of security or commodity. For purposes of 2 this subparagraph, gross income from principal transactions shall be 3 determined after the deduction of any cost incurred by the taxpayer to 4 acquire the securities or commodities. For purposes of this subdivision, 5 the term "production credits" means credits granted pursuant to the 6 internal accounting system used by the taxpayer to measure the amount of 7 revenue that should be awarded to a particular branch or office or 8 employee of the taxpayer which is based, at least in part, on the 9 branch's, the office's or the employee's particular activities. Upon 10 request, the taxpayer shall be required to furnish a detailed explana- 11 tion of such internal accounting system to the department. 12 (D) (i) Receipts constituting fees earned by the taxpayer for advisory 13 services to a customer in connection with the underwriting of securities 14 for such customer, such customer being the entity which is contemplating 15 issuing or is issuing securities, or fees earned by the taxpayer for 16 managing an underwriting shall be deemed to arise from services 17 performed at the mailing address in the records of the taxpayer of such 18 customer who is responsible for paying such fees. 19 (ii) Receipts constituting the primary spread or selling concession 20 from underwritten securities shall be deemed to arise from services 21 performed within the city to the extent that production credits are 22 awarded to branches, offices or employees of the taxpayer within the 23 city as a result of the sale of the underwritten securities. 24 (iii) The term "primary spread" means the difference between the price 25 paid by the taxpayer to the issuer of the securities being marketed and 26 the price received from the subsequent sale of the underwritten securi- 27 ties at the initial public offering price, less any selling concession 28 and any fees paid to the taxpayer for advisory services or any manager's 29 fees, if such fees are not paid by the customer to the taxpayer sepa- 30 rately. The term "public offering price" means the price agreed upon by 31 the taxpayer and the issuer at which the securities are to be offered to 32 the public. The term "selling concession" means the amount paid to the 33 taxpayer for participating in the underwriting of a security where the 34 taxpayer is not the lead underwriter. 35 (E) Receipts constituting interest earned by the taxpayer on loans and 36 advances made by the taxpayer to an entity affiliated with the taxpayer 37 shall be deemed to arise from services performed at the principal place 38 of business of such affiliated entity. For purposes of this subpara- 39 graph, an entity shall be considered affiliated with the taxpayer if 40 such entity and the taxpayer have eighty percent or more common direct 41 or indirect, actual or beneficial ownership. 42 (F) Receipts constituting account maintenance fees shall be deemed to 43 arise from services performed at the mailing address in the records of 44 the taxpayer of the customer who is responsible for paying such account 45 maintenance fees. 46 (G) Receipts constituting fees for management or advisory services, 47 including fees for advisory services in relation to merger or acquisi- 48 tion activities, but excluding fees paid for services described in para- 49 graph one of subdivision (e-2) of this section, shall be deemed to arise 50 from services performed at the mailing address in the records of the 51 taxpayer of the customer who is responsible for paying such fees. 52 (2) For purposes of this subdivision, the term "securities" shall have 53 the same meaning as in paragraph two of subdivision (c) of section four 54 hundred seventy-five of the internal revenue code and the term "commod- 55 ities" shall have the same meaning as in paragraph two of subdivision 56 (e) of section four hundred seventy-five of such code. The term "regis-

S. 8578 388 1 tered securities or commodities broker or dealer" means a broker or 2 dealer registered as such by the securities and exchange commission or 3 the commodities futures trading commission, and shall include an OTC 4 derivatives dealer as defined under regulations of the securities and 5 exchange commission at title seventeen, part two hundred forty, section 6 3b-12 of the code of federal regulations (17 CFR 240.3b-12). 7 (3) If the taxpayer receives any of the receipts enumerated in para- 8 graph one of this subdivision as a result of a securities correspondent 9 relationship such taxpayer has with another registered securities or 10 commodities broker or dealer with the taxpayer acting in this relation- 11 ship as the clearing firm, such receipts shall be deemed to arise from 12 services performed within the city to the extent set forth in each of 13 the subparagraphs in paragraph one of this subdivision. The amount of 14 such receipts shall exclude the amount the taxpayer is required to pay 15 to the correspondent firm for such correspondent relationship. If the 16 taxpayer receives any of the receipts enumerated in paragraph one of 17 this subdivision as a result of a securities correspondent relationship 18 such taxpayer has with another registered securities or commodities 19 broker or dealer with the taxpayer acting in this relationship as the 20 introducing firm, such receipts shall be deemed to arise from services 21 performed within the city to the extent set forth in each of the subpar- 22 agraphs in paragraph one of this subdivision. 23 (4) If, for purposes of subparagraph (A), (B), (F), or (G) of para- 24 graph one of this subdivision, and clause (i) of subparagraph (C) of 25 paragraph one of this subdivision, the taxpayer is unable from its 26 records to determine the mailing address of the customer, the receipts 27 described in any of such subparagraphs and such clause shall be deemed 28 to arise from services performed at the branch or office of the taxpayer 29 that generates the transaction for the customer that generated such 30 receipts. 31 (f) Allocation of investment income. (1) The investment income of an 32 unincorporated business shall be allocated to the city by multiplying 33 such investment income by an investment allocation percentage to be 34 determined as follows: 35 (A) multiply the amount of its investment capital invested in each 36 stock, bond or other security, other than governmental securities, 37 during the period covered by its return by the issuer's allocation 38 percentage, determined as provided in paragraph two of this subdivision, 39 of the issuer or obligor thereof: 40 (B) add together the products so obtained; and 41 (C) divide the sum so obtained by the total of its investment capital 42 invested during such period in stocks, bonds and other securities; 43 provided, however, that in case any investment capital is invested in 44 any stock, bond or other security during only a portion of the period 45 covered by the return, only such portion of such capital shall be taken 46 into account; and provided, further, that if a taxpayer's investment 47 allocation percentage is zero, interest received on bank accounts shall 48 be allocated in the manner provided in subdivision (b), (c) or (d) of 49 this section. 50 (2) (A) In the case of an issuer or obligor subject to tax under 51 subchapter two or three-A of chapter six of this title, or subject to 52 tax as a utility corporation under chapter eleven of this title, the 53 issuer's allocation percentage shall be the percentage of the appropri- 54 ate measure which is required to be allocated within the city on the 55 report or reports, if any, required of the issuer or obligor under chap- 56 ter six or eleven of this title for the preceding year. The appropriate

S. 8578 389 1 measure referred to in this subparagraph shall be: in the case of an 2 issuer or obligor subject to subchapter two of chapter six of this 3 title, entire capital; and in the case of an issuer or obligor subject 4 to chapter eleven of this title as a utility corporation, gross income. 5 (B) In the case of an issuer or obligor subject to tax under part four 6 of subchapter three of chapter six of this title, the issuer's allo- 7 cation percentage shall be determined as follows: 8 (i) In the case of a banking corporation described in paragraphs one 9 through eight of subdivision (a) of section 11-640 of this title which 10 is organized under the laws of the United States, this state or any 11 other state of the United States, the issuer's allocation percentage 12 shall be its alternative entire net income allocation percentage, as 13 defined in subdivision (c) of section 11-642 of this title, for the 14 preceding year. In the case of such a banking corporation whose alterna- 15 tive entire net income for the preceding year is derived exclusively 16 from business carried on within the city, its issuer's allocation 17 percentage shall be one hundred percent. 18 (ii) In the case of a banking corporation described in paragraph two 19 of subdivision (a) of section 11-640 of this title which is organized 20 under the laws of a country other than the United States, the issuer's 21 allocation percentage shall be determined by dividing (I) the amount 22 described in clause (i) of subparagraph (A) of paragraph two of subdivi- 23 sion (a) of section 11-642 of this title with respect to such issuer or 24 obligor for the preceding year, by (II) the gross income of such issuer 25 or obligor from all sources within and without the United States, for 26 such preceding year, whether or not included in alternative entire net 27 income for such year. 28 (iii) In the case of an issuer or obligor described in paragraph nine 29 of subdivision (a) or in paragraph two of subdivision (d) of section 30 11-640 of this title, the issuer's allocation percentage shall be deter- 31 mined by dividing the portion of the entire capital of the issuer or 32 obligor allocable to the city for the preceding year by the entire capi- 33 tal, wherever located, of the issuer or obligor for the preceding year. 34 (C) Provided, however, that if a report or reports for the preceding 35 year are not filed, or if filed do not contain information which would 36 permit the determination of such issuer's allocation percentage, then 37 the issuer's allocation percentage to be used shall, at the discretion 38 of the commissioner of finance, be either (i) the issuer's allocation 39 percentage derived from the most recently filed report or reports of the 40 issuer or obligor or (ii) a percentage calculated, by the commissioner 41 of finance, reasonably to indicate the degree of economic presence in 42 the city of the issuer or obligor during the preceding year. 43 (3) For purposes of this subdivision, investment capital shall be 44 determined by taking the average value of the gross assets included 45 therein, less liabilities deductible therefrom pursuant to the 46 provisions of subdivision (h) of section 11-501 of this chapter. The 47 value of investment capital which consists of marketable securities 48 shall be the fair market value thereof and the value of investment capi- 49 tal other than marketable securities shall be the value thereof shown on 50 the books and records of the unincorporated business in accordance with 51 generally accepted accounting principles. 52 (g) Special rules for manufacturing businesses. (1) For taxable years 53 beginning on or after July first, nineteen hundred ninety-six and before 54 January first, two thousand eleven, a manufacturing business may elect 55 to determine its business allocation percentage by adding together the 56 percentages determined under paragraphs one, two and three of subdivi-

S. 8578 390 1 sion (c) of this section and an additional percentage equal to the 2 percentage determined under paragraph three of subdivision (c) of this 3 section, and dividing the result by the number of percentages so added 4 together. 5 (2) An election under this subdivision must be made on a timely filed 6 (determined with regard to extensions granted) original return for the 7 taxable year. Once made for a taxable year, such election shall be irre- 8 vocable for that taxable year. A separate election must be made for each 9 taxable year. A manufacturing business that has failed to make an 10 election as provided in this paragraph shall be required to determine 11 its business allocation percentage without regard to the provisions of 12 this subdivision. Notwithstanding anything in this paragraph to the 13 contrary, the commissioner of finance may permit a manufacturing busi- 14 ness to make or revoke an election under this subdivision, upon such 15 terms and conditions as the commissioner may prescribe, where the 16 commissioner determines that such permission should be granted in the 17 interests of fairness and equity due to a change in circumstances 18 resulting from an audit adjustment. 19 (3) As used in this subdivision, the term "manufacturing business" 20 means an unincorporated business primarily engaged in the manufacturing 21 and sale thereof of tangible personal property; and the term "manufac- 22 turing" includes the process, including the assembly process (i) of 23 working raw materials into wares suitable for use or (ii) which gives 24 new shapes, new qualities or new combinations to matter which already 25 has gone through some artificial process, by the use of machinery, 26 tools, appliances and other similar equipment. An unincorporated busi- 27 ness shall be deemed to be primarily engaged in the activities described 28 in the preceding sentence if more than fifty percent of its gross 29 receipts for the taxable year are attributable to such activities. 30 (h) Notwithstanding subdivision (d) of this section, if it shall 31 appear to the commissioner of finance that any business or investment 32 allocation percentage determined pursuant to this section does not prop- 33 erly reflect the activity, business, or income of a taxpayer within the 34 city, the commissioner of finance shall be authorized in his or her 35 discretion, in the case of a business allocation percentage, to adjust 36 it by (1) excluding one or more of the factors therein; (2) including 37 one or more factors, such as expenses, purchases, contract values, minus 38 subcontract values; (3) excluding one or more assets in computing such 39 allocation percentage, provided the income therefrom is also excluded in 40 determining unincorporated business entire net income, or (4) any other 41 similar or different method calculated to effect a fair and proper allo- 42 cation of the income reasonably attributable to the city, and in the 43 case of an investment allocation percentage, to adjust it by excluding 44 one or more assets in computing such percentage; provided the income 45 therefrom is also excluded in determining unincorporated business entire 46 net income. The commissioner of finance from time to time shall publish 47 all rulings of general public interest with respect to any application 48 of the provisions of this subdivision. 49 (i) Notwithstanding subdivision (c) of this section, but subject to 50 subdivision (g) of this section, the business allocation percentage 51 shall be computed in the manner set forth in this subdivision. 52 (1) For taxable years beginning in two thousand nine, the business 53 allocation percentage shall be determined by adding together the follow- 54 ing percentages: 55 (A) the product of thirty percent and the percentage determined under 56 paragraph one of subdivision (c) of this section,

S. 8578 391 1 (B) the product of thirty percent and the percentage determined under 2 paragraph two of subdivision (c) of this section, and 3 (C) the product of forty percent and the percentage determined under 4 paragraph three of subdivision (c) of this section. 5 (2) For taxable years beginning in two thousand ten, the business 6 allocation percentage shall be determined by adding together the follow- 7 ing percentages: 8 (A) the product of twenty-seven percent and the percentage determined 9 under paragraph one of subdivision (c) of this section, 10 (B) the product of twenty-seven percent and the percentage determined 11 under paragraph two of subdivision (c) of this section, and 12 (C) the product of forty-six percent and the percentage determined 13 under paragraph three of subdivision (c) of this section. 14 (3) For taxable years beginning in two thousand eleven, the business 15 allocation percentage shall be determined by adding together the follow- 16 ing percentages: 17 (A) the product of twenty-three and one-half percent and the percent- 18 age determined under paragraph one of subdivision (c) of this section, 19 (B) the product of twenty-three and one-half percent and the percent- 20 age determined under paragraph two of subdivision (c) of this section, 21 and 22 (C) the product of fifty-three percent and the percentage determined 23 under paragraph three of subdivision (c) of this section. 24 (4) For taxable years beginning in two thousand twelve, the business 25 allocation percentage shall be determined by adding together the follow- 26 ing percentages: 27 (A) the product of twenty percent and the percentage determined under 28 paragraph one of subdivision (c) of this section, 29 (B) the product of twenty percent and the percentage determined under 30 paragraph two of subdivision (c) of this section, and 31 (C) the product of sixty percent and the percentage determined under 32 paragraph three of subdivision (c) of this section. 33 (5) For taxable years beginning in two thousand thirteen, the business 34 allocation percentage shall be determined by adding together the follow- 35 ing percentages: 36 (A) the product of sixteen and one-half percent and the percentage 37 determined under paragraph one of subdivision (c) of this section, 38 (B) the product of sixteen and one-half percent and the percentage 39 determined under paragraph two of subdivision (c) of this section, and 40 (C) the product of sixty-seven percent and the percentage determined 41 under paragraph three of subdivision (c) of this section. 42 (6) For taxable years beginning in two thousand fourteen, the business 43 allocation percentage shall be determined by adding together the follow- 44 ing percentages: 45 (A) the product of thirteen and one-half percent and the percentage 46 determined under paragraph one of subdivision (c) of this section, 47 (B) the product of thirteen and one-half percent and the percentage 48 determined under paragraph two of subdivision (c) of this section, and 49 (C) the product of seventy-three percent and the percentage determined 50 under paragraph three of subdivision (c) of this section. 51 (7) For taxable years beginning in two thousand fifteen, the business 52 allocation percentage shall be determined by adding together the follow- 53 ing percentages: 54 (A) the product of ten percent and the percentage determined under 55 paragraph one of subdivision (c) of this section,

S. 8578 392 1 (B) the product of ten percent and the percentage determined under 2 paragraph two of subdivision (c) of this section, and 3 (C) the product of eighty percent and the percentage determined under 4 paragraph three of subdivision (c) of this section. 5 (8) For taxable years beginning in two thousand sixteen, the business 6 allocation percentage shall be determined by adding together the follow- 7 ing percentages: 8 (A) the product of six and one-half percent and the percentage deter- 9 mined under paragraph one of subdivision (c) of this section, 10 (B) the product of six and one-half percent and the percentage deter- 11 mined under paragraph two of subdivision (c) of this section, and 12 (C) the product of eighty-seven percent and the percentage determined 13 under paragraph three of subdivision (c) of this section. 14 (9) For taxable years beginning in two thousand seventeen, the busi- 15 ness allocation percentage shall be determined by adding together the 16 following percentages: 17 (A) the product of three and one-half percent and the percentage 18 determined under paragraph one of subdivision (c) of this section, 19 (B) the product of three and one-half percent and the percentage 20 determined under paragraph two of subdivision (c) of this section, and 21 (C) the product of ninety-three percent and the percentage determined 22 under paragraph three of subdivision (c) of this section. 23 (10) For taxable years beginning after two thousand seventeen, the 24 business allocation percentage shall be the percentage determined under 25 paragraph three of subdivision (c) of this section. 26 (11) The commissioner shall promulgate rules necessary to implement 27 the provisions of this subdivision under such circumstances where any of 28 the percentages to be determined under paragraph one, two or three of 29 subdivision (c) of this section cannot be determined because the taxpay- 30 er has no property, payroll or gross receipts from sales or services 31 within or without the city. 32 § 11-509 Deductions not subject to allocation. (a) In computing 33 unincorporated business taxable income, there shall be allowed, without 34 allocation under section 11-508 of this chapter, deductions for reason- 35 able compensation for taxable years beginning before January first, two 36 thousand seven, not in excess of five thousand dollars, and for taxable 37 years beginning on or after January first, two thousand seven, not in 38 excess of ten thousand dollars, for personal services of the proprietor 39 and each partner actively engaged in the unincorporated business, but 40 the aggregate of such deductions shall not exceed twenty per centum of 41 the unincorporated business taxable income computed without the benefit 42 of any deductions under this subdivision or the unincorporated business 43 exemptions under section 11-510 of this chapter. 44 (b) Subject to the conditions provided in paragraphs three and four of 45 this subdivision at the election of the taxpayer there shall also be 46 allowed, without allocation under section 11-508 of this chapter, either 47 or both of the items set forth in paragraphs one and two of this subdi- 48 vision, except that only one of the items shall be allowed with respect 49 to any one item of property. 50 (1) Depreciation with respect to any property such as described in 51 paragraphs three or four of this subdivision, and subject to the condi- 52 tions provided therein, not exceeding twice the depreciation allowed 53 with respect to the same property for federal income tax purposes. Such 54 deduction shall be allowed only upon condition that no deduction shall 55 be allowed pursuant to section 11-507 of this chapter for depreciation 56 of the same property, and the total of all deductions allowed pursuant

S. 8578 393 1 to this paragraph in any taxable year or years with respect to any prop- 2 erty shall not exceed its cost or other basis and, in the case of an 3 unincorporated business carried on both within and without this city, 4 with respect to property described in paragraph four of this subdivi- 5 sion, such total shall not exceed its cost or other basis multiplied by 6 (A) the percentage of the excess of the taxpayer's unincorporated busi- 7 ness gross income over its unincorporated business deductions allocated 8 to this city, or (B) the percentage of the taxpayer's business income 9 allocated to this city, whichever is applicable, which percentage shall 10 be determined under section 11-508 of this chapter for the first year 11 such depreciation is deducted. 12 (2) Expenditures paid or incurred during the taxable year for the 13 construction, reconstruction, erection or acquisition of any property 14 such as described in paragraph three or four of this subdivision, and 15 subject to the conditions provided therein, which is used or to be used 16 for purposes of research or development in the experimental or laborato- 17 ry sense. Such purposes shall not be deemed to include the ordinary 18 testing or inspection of materials or products for quality control, 19 efficiency surveys, management studies, consumer surveys, advertising, 20 promotions or research in connection with literary, historical or simi- 21 lar projects. Such deduction shall be allowed only on condition that, in 22 the case of an unincorporated business carried on both within and with- 23 out this city, with respect to property described in paragraph four of 24 this subdivision, such deduction does not exceed the expenditures multi- 25 plied by (A) the percentage of the excess of the taxpayer's unincorpo- 26 rated business gross income over its unincorporated business deductions 27 allocated to this city, or (B) the percentage of the taxpayer's business 28 income allocated to this city, whichever is applicable, which percentage 29 shall be determined under section 11-508 of this chapter for the first 30 year such depreciation is deducted, and that, for the taxable year and 31 all succeeding taxable years, no deduction shall be allowed pursuant to 32 section 11-507 of this chapter on account of such expenditures or on 33 account of depreciation of the same property, except to the extent that 34 its basis may be attributable to factors other than such expenditures, 35 or in case a deduction is allowable pursuant to this paragraph for only 36 a part of such expenditures, on condition that any deduction allowable 37 for federal income tax purposes on account of such expenditures or on 38 account of depreciation of the same property shall be proportionately 39 reduced in determining the deductions allowable pursuant to section 40 11-507 of this chapter for the taxable year and all succeeding taxable 41 years. With respect to property which is used or to be used for research 42 and development only in part, or during only part of its useful life, 43 the deduction allowable pursuant to this paragraph shall be limited to a 44 proportionate part of the expenditures relating thereto. If a deduction 45 shall have been allowed pursuant to this paragraph for all or part of 46 such expenditures with respect to any property, and such property is 47 used for purposes other than research and development to a greater 48 extent than originally reported, the taxpayer shall report such use in 49 the taxpayer's return for the first taxable year during which it occurs, 50 and the commissioner of finance may recompute the tax for the year or 51 years for which such deduction was allowed, and may assess any addi- 52 tional tax resulting from such recomputation within the time fixed by 53 subdivision (c) of section 11-523 of this chapter. 54 (3) For purposes of this paragraph, such deduction shall be allowed 55 only with respect to tangible property which is depreciable pursuant to 56 section one hundred sixty-seven of the internal revenue code, having a

S. 8578 394 1 situs in the city and used in the taxpayer's trade or business, (A) 2 constructed, reconstructed or erected after December thirty-first, nine- 3 teen hundred sixty-five, pursuant to a contract which was, on or before 4 December thirty-first, nineteen hundred sixty-seven, and at all times 5 thereafter, binding on the taxpayer or, property, the physical 6 construction, reconstruction or erection of which began on or before 7 December thirty-first, nineteen hundred sixty-seven or which began after 8 such date pursuant to an order placed on or before December thirty- 9 first, nineteen hundred sixty-seven, and then only with respect to that 10 portion of the basis thereof or the expenditure relating thereto which 11 is properly attributable to such construction, reconstruction or 12 erection after December thirty-first, nineteen hundred sixty-five, or 13 (B) acquired after December thirty-first, nineteen hundred sixty-five, 14 pursuant to a contract which was, on or before December thirty-first, 15 nineteen hundred sixty-seven, and at all times thereafter, binding on 16 the taxpayer or pursuant to an order placed on or before December thir- 17 ty-first, nineteen hundred sixty-seven, by purchase as defined in 18 section one hundred seventy-nine (d) of the internal revenue code, if 19 the original use of such property commenced with the taxpayer, commenced 20 in the city and commenced after December thirty-first, nineteen hundred 21 sixty-five or (C) acquired, constructed, reconstructed, or erected 22 subsequent to December thirty-first, nineteen hundred sixty-seven, if 23 such acquisition, construction, reconstruction or erection is pursuant 24 to a plan of the taxpayer which was in existence December thirty-first, 25 nineteen hundred sixty-seven and not thereafter substantially modified, 26 and such acquisition, construction, reconstruction or erection would 27 qualify under the rules in paragraph four, five or six of subsection (h) 28 of section forty-eight of the internal revenue code provided all refer- 29 ences in such paragraphs four, five and six to the dates October nine, 30 nineteen hundred sixty-six, and October ten, nineteen hundred sixty-six, 31 shall be read as December thirty-first, nineteen hundred sixty-seven. A 32 taxpayer shall be allowed a deduction under subparagraph (A), (B) or (C) 33 of this paragraph only if the tangible property shall be delivered or 34 the construction, reconstruction or erection shall be completed on or 35 before December thirty-first, nineteen hundred sixty-nine, except in the 36 case of tangible property which is acquired, constructed, reconstructed 37 or erected pursuant to a contract which was, on or before December thir- 38 ty-first, nineteen hundred sixty-seven, and at all times thereafter, 39 binding on the taxpayer. However, for any taxable year beginning on or 40 after January first, nineteen hundred sixty-eight, a taxpayer shall not 41 be allowed a deduction under paragraph one of this subdivision with 42 respect to tangible personal property leased to any other person or 43 corporation, provided, any contract or agreement to lease or rent or for 44 a license to use such property shall be considered a lease. With 45 respect to property which a taxpayer uses for purposes other than leas- 46 ing for part of a taxable year and leases for a part of a taxable year, 47 a deduction under paragraph one of this subdivision may be taken in 48 proportion to the part of the year such property is used by the taxpay- 49 er. 50 (4) For purposes of this paragraph, such deductions shall be allowed 51 only with respect to tangible property which is depreciable pursuant to 52 section one hundred sixty-seven of the internal revenue code, having a 53 situs in this city and used in the taxpayer's trade or business, (A) the 54 construction, reconstruction, or erection of which is completed after 55 December thirty-first, nineteen hundred sixty-seven, and then only with 56 respect to that portion of the basis thereof or the expenditures relat-

S. 8578 395 1 ing thereto which is properly attributable to such construction, recon- 2 struction or erection after December thirty-first, nineteen hundred 3 sixty-three, or (B) acquired after December thirty-first, nineteen 4 hundred sixty-seven, by purchase as defined in section one hundred 5 seventy-nine (d) of the internal revenue code, if the original use of 6 such property commenced with the taxpayer, commenced in this city and 7 commenced after December thirty-first, nineteen hundred sixty-five. 8 Provided, however, a deduction under paragraph one of this subdivision 9 shall be allowed with respect to property described in this paragraph 10 only on condition that such property shall be principally used by the 11 taxpayer in the production of goods by manufacturing; processing; assem- 12 bling; refining; mining; extracting; farming; agriculture; horticulture; 13 floriculture; viticulture or commercial fishing, provided, manufacturing 14 shall mean the process of working raw materials into wares suitable for 15 use or which gives new shapes, new qualities or new combinations to 16 matter which already has gone through some artificial process by the use 17 of machinery, tools, appliances, and other similar equipment. Property 18 used in the production of goods shall include machinery, equipment or 19 other tangible property which is principally used in the repair and 20 service of other machinery, equipment or other tangible property used 21 principally in the production of goods and shall include all facilities 22 used in the manufacturing operation, including storage of material to be 23 used in manufacturing and of the products that are manufactured. At the 24 option of the taxpayer, air and water pollution control facilities which 25 qualify for elective deductions under subdivision (i) of section 11-507 26 of this chapter may be treated, for purposes of this paragraph, as 27 tangible property principally used in the production of goods by manu- 28 facturing; processing; assembling; refining; mining; extracting; farm- 29 ing; agriculture; horticulture; floriculture; viticulture or commercial 30 fishing, in which event, a deduction shall not be allowed under subdivi- 31 sion (i) of section 11-507 of this chapter. However, for any taxable 32 year beginning on or after January first, nineteen hundred sixty-eight, 33 a taxpayer shall not be allowed a deduction under paragraph one of this 34 subdivision with respect to tangible personal property leased to any 35 other person or corporation, provided, any contract or agreement to 36 lease or rent or for a license to use such property shall be considered 37 a lease. With respect to property which a taxpayer uses for purposes 38 other than leasing for part of a taxable year and leases for a part of a 39 taxable year, a deduction under paragraph one shall be allowed in 40 proportion to the part of the year such property is used by the taxpay- 41 er. 42 (5) If the deductions allowable for any taxable year pursuant to this 43 subdivision exceed the taxpayer's unincorporated business taxable 44 income, determined without the allowance of such deductions, the excess 45 may be carried over to the following taxable year or years and may be 46 deducted, without allocation under section 11-508 of this chapter, in 47 computing unincorporated business taxable income for such year or years. 48 (6) In any taxable year when property is sold or otherwise disposed 49 of, with respect to which a deduction has been allowed pursuant to para- 50 graph one or two of this subdivision, the basis of such property shall 51 be adjusted to reflect the deductions so allowed, and if the basis as so 52 adjusted is lower than the adjusted basis of the same property for 53 federal income tax purposes, there shall be added to federal gross 54 income the amount of the difference between such adjusted bases.

S. 8578 396 1 § 11-510 Unincorporated business exemptions. In computing unincorpo- 2 rated business taxable income, there shall be allowed, without allo- 3 cation under section 11-508 of this chapter: 4 (a) an unincorporated business exemption of five thousand dollars, 5 prorated for taxable years of less than twelve months under regulations 6 of the commissioner of finance; 7 (b) if a partner in an unincorporated business is taxable under this 8 chapter or under any local law imposed pursuant to section one of chap- 9 ter seven hundred seventy-two of the laws of nineteen hundred sixty-six, 10 an exemption for the amount of the partner's proportionate interest in 11 the excess of the unincorporated business gross income over the 12 deductions allowed under sections 11-507 and 11-509 of this chapter, but 13 this exemption shall be limited to the amount which is included in the 14 partner's unincorporated business taxable income allocable to the city, 15 or included in a corporate partner's net income allocable to the city, 16 provided, however, no such exemption shall be allowed to an unincorpo- 17 rated business for any taxable year of the unincorporated business 18 beginning after June thirtieth, nineteen hundred ninety-four. 19 § 11-511 Declarations of estimated tax. (a) Requirement of declara- 20 tion. Except as provided in subdivision (j) of this section, every 21 unincorporated business shall make a declaration of its estimated tax 22 for the taxable year, containing such information as the commissioner of 23 finance may prescribe by regulations or instruction, if: (1) for taxable 24 years beginning after nineteen hundred eighty-six but before nineteen 25 hundred ninety-six, its unincorporated business taxable income can 26 reasonably be expected to exceed fifteen thousand dollars; (2) for taxa- 27 ble years beginning in nineteen hundred ninety-six, its unincorporated 28 business taxable income can reasonably be expected to exceed twenty 29 thousand dollars; (3) for taxable years beginning after nineteen hundred 30 ninety-six but before two thousand nine, its estimated tax can reason- 31 ably be expected to exceed one thousand eight hundred dollars; and (4) 32 for taxable years beginning after two thousand eight, its estimated tax 33 can reasonably be expected to exceed three thousand four hundred 34 dollars. 35 (b) Definition of estimated tax. The term "estimated tax" means the 36 amount which an unincorporated business estimates to be its tax under 37 this chapter for the taxable year, less the amount which it estimates to 38 be the sum of any credits allowable against the tax other than the cred- 39 it allowable under subdivision (c) of section 11-503 of this chapter. 40 (c) Time for filing declaration. Except as hereinafter provided, a 41 declaration of estimated tax required under this section shall be filed 42 on or before April fifteenth of the taxable year provided, however, that 43 if the requirements of subdivision (a) of this section are first met: 44 (1) after April first and before June second of the taxable year, the 45 declaration shall be filed on or before June fifteenth, or 46 (2) after June first and before September second of the taxable year, 47 the declaration shall be filed on or before September fifteenth, or 48 (3) after September first of the taxable year, the declaration shall 49 be filed on or before January fifteenth of the succeeding year. 50 (d) Filing of declarations on or before January fifteenth. 51 (1) A declaration of estimated tax by an unincorporated business 52 having an estimated unincorporated business taxable income from farming, 53 including oyster farming, for the taxable year which is at least two- 54 thirds of its total estimated unincorporated business taxable income for 55 the taxable year may be filed at any time on or before January fifteenth 56 of the succeeding year.

S. 8578 397 1 (2) For taxable years beginning before nineteen hundred ninety-seven, 2 a declaration of estimated tax under this section of forty dollars or 3 less for the taxable year may be filed at any time on or before January 4 fifteenth of the succeeding year under regulations of the commissioner 5 of finance. 6 (e) Amendments of declaration. An unincorporated business may amend a 7 declaration under regulations of the commissioner of finance. 8 (f) Return as declaration or amendment. If on or before February 9 fifteenth of the succeeding taxable year an unincorporated business 10 subject to the estimated tax requirements of this section files its 11 return for the taxable year for which the declaration is required, and 12 pays on or before such date the full amount of the tax shown to be due 13 on the return: 14 (1) such return shall be considered as its declaration if no declara- 15 tion was required to be filed during the taxable year, but is otherwise 16 required to be filed on or before January fifteenth of the succeeding 17 year, and 18 (2) such return shall be considered as the amendment permitted by 19 subdivision (e) of this section to be filed on or before January 20 fifteenth if the tax shown on the return is greater than the estimated 21 tax shown in a declaration previously made. 22 (g) Fiscal year. This section shall apply to a taxable year other 23 than a calendar year by the substitution of the months of such fiscal 24 year for the corresponding months specified in this section. 25 (h) Short taxable year. An unincorporated business subject to the 26 estimated tax requirements of this section and having a taxable year of 27 less than twelve months shall make a declaration in accordance with 28 regulations of the commissioner of finance. 29 (i) Declaration of unincorporated business under a disability. The 30 declaration of estimated tax for an unincorporated business which is 31 unable to make a declaration for any reason shall be made and filed by 32 the committee, fiduciary or other person charged with the care of the 33 property of such unincorporated business, other than a receiver in 34 possession of only a part of such property, or by his or her duly 35 authorized agent. 36 (j) Declaration of estimated tax for taxable years beginning prior to 37 July thirteenth, nineteen hundred sixty-six. Notwithstanding subdivision 38 (c) of this section, no declaration of estimated tax required by subdi- 39 vision (a) of this section need be filed until September twelfth, nine- 40 teen hundred sixty-six. 41 § 11-512 Payments of estimated tax. (a) General. The estimated tax 42 with respect to which a declaration is required shall be paid as 43 follows: 44 (1) If the declaration is filed on or before April fifteenth of the 45 taxable year, the estimated tax shall be paid in four equal install- 46 ments. The first installment shall be paid at the time of the filing of 47 the declaration, and the second, third and fourth installments shall be 48 paid on the following June fifteenth, September fifteenth, and January 49 fifteenth, respectively. 50 (2) If the declaration is filed after April fifteenth and not after 51 June fifteenth of the taxable year, and is not required to be filed on 52 or before April fifteenth of the taxable year, the estimated tax shall 53 be paid in three equal installments. The first installment shall be 54 paid at the time of the filing of the declaration, and the second and 55 third installments shall be paid on the following September fifteenth 56 and January fifteenth, respectively.

S. 8578 398 1 (3) If the declaration is filed after June fifteenth and not after 2 September fifteenth of the taxable year, and is not required to be filed 3 on or before June fifteenth of the taxable year, the estimated tax shall 4 be paid in two equal installments. The first installment shall be paid 5 at the time of the filing of the declaration, and the second shall be 6 paid on the following January fifteenth. 7 (4) If the declaration is filed after September fifteenth of the taxa- 8 ble year, and is not required to be filed on or before September 9 fifteenth of the taxable year, the estimated tax shall be paid in full 10 at the time of the filing of the declaration. 11 (5) If the declaration is filed after the time prescribed therefor, or 12 after the expiration of any extension of time therefor, paragraphs two, 13 three and four of this subdivision shall not apply, and there shall be 14 paid at the time of such filing all installments of estimated tax paya- 15 ble at or before such time, and the remaining installments shall be paid 16 at the times at which, and in the amounts in which, they would have been 17 payable if the declaration had been filed when due. 18 (b) Amendments of declaration. If any amendment of a declaration is 19 filed, the remaining installments, if any, shall be ratably increased or 20 decreased, as the case may be, to reflect any increase or decrease in 21 the estimated tax by reason of such amendment, and if any amendment is 22 made after September fifteenth of the taxable year, any increase in the 23 estimated tax by reason thereof shall be paid at the time of making such 24 amendment. 25 (c) Application to short taxable year. This section shall apply to a 26 taxable year of less than twelve months in accordance with regulations 27 of the commissioner of finance. 28 (d) Fiscal year. This section shall apply to a taxable year other 29 than a calendar year by the substitution of the months of such fiscal 30 year for the corresponding months specified in this section. 31 (e) Installments paid in advance. An unincorporated business may elect 32 to pay any installment of its estimated tax prior to the date prescribed 33 for the payment thereof. 34 (f) Cross reference. For unincorporated businesses with taxable years 35 beginning prior to July thirteenth, nineteen hundred sixty-six, see 36 subdivision (j) of section 11-511 of this chapter. 37 (g) Taxpayers with credit relating to stock transfer tax. The portion 38 of an overpayment attributable to a credit allowable pursuant to subdi- 39 vision (c) of section 11-503 of this chapter may not be credited against 40 any payment due under this section. 41 § 11-513 Accounting periods and methods. (a) Accounting periods. A 42 taxpayer's taxable year under this chapter shall be the same as the 43 taxpayer's taxable year for federal income tax purposes. 44 (b) Accounting methods. A taxpayer's method of accounting under this 45 chapter shall be the same as the taxpayer's method of accounting for 46 federal income tax purposes. In the absence of any method of accounting 47 for federal income tax purposes, unincorporated business taxable income 48 shall be computed under such method as in the opinion of the commission- 49 er of finance clearly reflects income. 50 (c) Change of accounting period or method. (1) If a taxpayer's taxa- 51 ble year or method of accounting is changed for federal income tax 52 purposes, the taxable year or method of accounting for purposes of this 53 chapter shall be similarly changed. 54 (2) If a taxpayer's method of accounting is changed, other than from 55 an accrual to an installment method, any additional tax which results 56 from adjustments determined to be necessary solely by reason of the

S. 8578 399 1 change shall not be greater than if such adjustments were ratably allo- 2 cated and included for the taxable year of the change and the preceding 3 taxable years, not in excess of two, beginning after January first, 4 nineteen hundred sixty-six, during which the taxpayer used the method of 5 accounting from which the change is made. 6 (3) If a taxpayer's method of accounting is changed from an accrual 7 to an installment method, any additional tax for the year of such change 8 of method and for any subsequent year, which is attributable to the 9 receipt of installment payments properly accrued in a prior year, shall 10 be reduced by the portion of tax for any prior taxable year attributable 11 to the accrual of such installment payments, in accordance with regu- 12 lations of the commissioner of finance. 13 § 11-514 Returns, payment of tax. (a) General. An unincorporated 14 business income tax return shall be made and filed, and the balance of 15 any tax shown on the face of such return, not previously paid as 16 installments of estimated tax, shall be paid, on or before the fifteenth 17 day of the fourth month following the close of a taxable year, except 18 that in the case of an unincorporated business classified as a partner- 19 ship for federal income tax purposes, such return shall be made and 20 filed and such balance shall be paid on or before the fifteenth day of 21 the third month following the close of a taxable year for taxable years 22 beginning on or after January first, two thousand sixteen, by or for 23 every: 24 (1) unincorporated business, for taxable years beginning after nine- 25 teen hundred eighty-six but before nineteen hundred ninety-seven, having 26 unincorporated business gross income, determined for purposes of this 27 subdivision without any deduction for the cost of goods sold or services 28 performed, of more than ten thousand dollars, or having any amount of 29 unincorporated business taxable income; 30 (2) partnership, for taxable years beginning after nineteen hundred 31 ninety-six, having unincorporated business gross income, determined for 32 purposes of this subdivision without any deduction for the cost of goods 33 sold or services performed, of more than twenty-five thousand dollars, 34 or having unincorporated business taxable income of more than fifteen 35 thousand dollars; 36 (3) unincorporated business other than a partnership, for taxable 37 years beginning after nineteen hundred ninety-six, having unincorporated 38 business gross income, determined for purposes of this subdivision with- 39 out any deduction for the cost of goods sold or services performed, of 40 more than seventy-five thousand dollars, or having unincorporated busi- 41 ness taxable income of more than thirty-five thousand dollars; and 42 (4) unincorporated business, for taxable years beginning after two 43 thousand eight, having unincorporated business gross income, determined 44 for purposes of this subdivision without any deduction for the cost of 45 goods sold or services performed, of more than ninety-five thousand 46 dollars. 47 (b) Decedents. The return for any deceased individual shall be made 48 and filed by his or her executor, administrator, or other person charged 49 with his or her property. If a final return of a decedent is for a 50 fractional part of a year, the due date of such return shall be the 51 fifteenth day of the fourth month following the close of the twelve- 52 month period which began with the first day of such fractional part of 53 the year. 54 (c) Individuals under a disability. The return for an individual who 55 is unable to make a return by reason of minority or other disability 56 shall be made and filed by such individual's guardian, committee, fidu-

S. 8578 400 1 ciary or other person charged with the care of his or her person or 2 property, other than a receiver in possession of only a part of his or 3 her property, or by such individual's duly authorized agent. 4 (d) Estates and trusts. The return for an estate or trust shall be 5 made and filed by the fiduciary. 6 (e) Joint fiduciaries. If two or more fiduciaries are acting jointly, 7 the return may be made by any one of them. 8 (f) Returns for taxable years ending prior to December thirty-first, 9 nineteen hundred sixty-six. With respect to taxable years ending prior 10 to December thirty-first, nineteen hundred sixty-six, the returns 11 required to be made and filed pursuant to this section shall be made and 12 filed on or before the fifteenth day of the fourth month following the 13 close of such taxable year or September twelfth, nineteen hundred 14 sixty-six, whichever is later. 15 (g) Taxpayers with credit relating to stock transfer tax. Subdivision 16 (a) of this section shall apply to a taxpayer which has a right to a 17 credit pursuant to subdivision (c) of section 11-503 of this chapter, 18 except that the tax, or balance thereof, payable to the commissioner of 19 finance in full pursuant to subdivision (a) of this section, at the time 20 the report is required to be filed, shall be calculated and paid at such 21 time as if the credit provided for in subdivision (c) of section 11-503 22 of this chapter were not allowed. 23 § 11-515 Time and place for filing returns and paying tax. A person 24 required to make and file a return under this chapter shall, without 25 assessment, notice or demand, pay any tax due thereon to the commission- 26 er of finance on or before the date fixed for filing such return, deter- 27 mined without regard to any extension of time for filing the return. 28 The commissioner of finance shall prescribe by regulation the place for 29 filing any return, declaration, statement, or other document required 30 pursuant to this chapter and for payment of any tax. 31 § 11-516 Signing of returns and other documents. (a) General. Any 32 return, declaration, statement or other document required to be made 33 pursuant to this chapter shall be signed in accordance with regulations 34 or instructions prescribed by the commissioner of finance. The fact 35 that an individual's name is signed to a return, declaration, statement, 36 or other document, shall be prima facie evidence for all purposes that 37 the return, declaration, statement or other document was actually signed 38 by such individual. 39 (b) Partnerships. Any return, statement or other document required of 40 a partnership shall be signed by one or more partners. The fact that a 41 partner's name is signed to a return, statement, or other document, 42 shall be prima facie evidence for all purposes that such partner is 43 authorized to sign on behalf of the partnership. 44 (c) Certifications. The making or filing of any return, declaration, 45 statement or other document or copy thereof required to be made or filed 46 pursuant to this chapter, including a copy of a federal return, shall 47 constitute a certification by the person making or filing such return, 48 declaration, statement or other document or copy thereof that the state- 49 ments contained therein are true and that any copy filed is a true copy. 50 § 11-517 Extensions of time. (a) General. The commissioner of 51 finance may grant a reasonable extension of time for payment of tax or 52 estimated tax, or any installment, or for filing any return, declara- 53 tion, statement, or other document required pursuant to this chapter, on 54 such terms and conditions as it may require. Except for a taxpayer who 55 is outside the United States, no such extension for filing any return, 56 declaration, statement or other document, shall exceed six months.

S. 8578 401 1 (b) Furnishing of security. If any extension of time is granted for 2 payment of any amount of tax, the commissioner of finance may require 3 the taxpayer to furnish a bond or other security in an amount not 4 exceeding twice the amount for which the extension of time for payment 5 is granted, on such terms and conditions as the commissioner of finance 6 may require. 7 § 11-518 Requirements concerning returns, notices, records and state- 8 ments. (a) General. The commissioner of finance may prescribe regu- 9 lations as to the keeping of records, the content and forms of returns 10 and statements, and the filing of copies of federal income tax returns 11 and determinations. The commissioner of finance may require any person, 12 by regulation or notice served upon such person, to make such returns, 13 render such statements, or keep such records, as the commissioner of 14 finance may deem sufficient to show whether or not such person is liable 15 under this chapter for tax or for collection of tax. 16 (b) Notice of qualification as receiver, etc. Every receiver, trustee 17 in bankruptcy, assignee for benefit of creditors, or other like fiduci- 18 ary shall give notice of his or her qualification as such to the commis- 19 sioner of finance, as may be required by regulation. 20 § 11-519 Report of change in federal or New York state taxable 21 income. If the amount of a taxpayer's federal or New York state taxable 22 income reported on his or her federal or New York state income tax for 23 any taxable year is changed or corrected by the United States internal 24 revenue service or the New York state tax commission or other competent 25 authority, or as the result of a renegotiation of a contract or subcon- 26 tract with the United States or the state of New York, or if a taxpayer, 27 pursuant to subsection (d) of section sixty-two hundred thirteen of the 28 internal revenue code, executes a notice of waiver of the restrictions 29 provided in subsection (a) of said section, or if a taxpayer, pursuant 30 to subsection (f) of section six hundred eighty-one of the tax law, 31 executes a notice or waiver of the restrictions provided in subsection 32 (c) of such section of the tax law, the taxpayer shall report such 33 change or correction in federal or New York state taxable income or such 34 execution of such notice of waiver and the changes or corrections of the 35 taxpayer's federal or New York state taxable income on which it is 36 based, within ninety days after the final determination of such change, 37 correction, or renegotiation, or such execution of such notice of waiv- 38 er, or as otherwise required by the commissioner of finance, and shall 39 concede the accuracy of such determination or state wherein it is erro- 40 neous. Any taxpayer filing an amended federal or New York state income 41 tax return shall also file within ninety days thereafter an amended 42 return under this chapter, and shall give such information as the 43 commissioner of finance may require. The commissioner of finance may by 44 regulation prescribe such exceptions to the requirements of this section 45 as the commissioner deems appropriate. 46 § 11-519.1 Report of change of state sales and compensating use tax 47 liability. Where the state tax commission changes or corrects a taxpay- 48 er's sales and compensating use tax liability with respect to the 49 purchase or use of items for which a sales or compensating use tax cred- 50 it against the tax imposed by this chapter was claimed, the taxpayer 51 shall report such change or correction to the commissioner of finance 52 within ninety days of the final determination of such change or 53 correction, or as required by the commissioner of finance, and shall 54 concede the accuracy of such determination or state wherein it is erro- 55 neous. Any taxpayer filing an amended return or report relating to the 56 purchase or use of such items shall also file within ninety days there-

S. 8578 402 1 after a copy of such amended return or report with the commissioner of 2 finance. 3 § 11-520 Change of election. Any election expressly authorized by 4 this chapter, other than the election authorized by section 11-506 of 5 this chapter, may be changed on such terms and conditions as the commis- 6 sioner of finance may prescribe by regulation. 7 § 11-521 Notice of deficiency. (a) General. If upon examination of a 8 taxpayer's return under this chapter the commissioner of finance deter- 9 mines that there is a deficiency of income tax, the commissioner may 10 mail a notice of deficiency to the taxpayer. If a taxpayer fails to file 11 a return required under this chapter, the commissioner of finance is 12 authorized to estimate the taxpayer's city unincorporated business taxa- 13 ble income and tax thereon, from any information in the commissioner's 14 possession, and to mail a notice of deficiency to the taxpayer. A notice 15 of deficiency shall be mailed by certified or registered mail to the 16 taxpayer at his or her last known address in or out of the city. If the 17 taxpayer is deceased or under a legal disability, a notice of deficiency 18 may be mailed to his or her last known address in or out of the city, 19 unless the commissioner of finance has received notice of the existence 20 of a fiduciary relationship with respect to the taxpayer. 21 (b) Notice of deficiency as assessment. After ninety days from the 22 mailing of a notice of deficiency or, if the commissioner of finance has 23 established a conciliation procedure pursuant to section 11-124 of this 24 title and the taxpayer has requested a conciliation conference in 25 accordance therewith, after ninety days from the mailing of the concil- 26 iation decision or the date of the commissioner's confirmation of the 27 discontinuance of the conciliation proceeding, such notice shall be an 28 assessment of the amount of tax specified therein, together with the 29 interest, additions to tax and penalties stated in such notice, except 30 only for any such tax or other amounts as to which the taxpayer has 31 within such ninety day period filed with the tax appeals tribunal a 32 petition under section 11-529 of this chapter. If the notice of defi- 33 ciency or conciliation decision is addressed to a person outside of the 34 United States, such period shall be one hundred fifty days instead of 35 ninety days. 36 (c) Restrictions on assessment and levy. No assessment of a deficiency 37 in tax and no levy or proceeding in court for its collection shall be 38 made, begun or prosecuted, except as otherwise provided in section 39 11-534 of this chapter, until a notice of deficiency has been mailed to 40 the taxpayer, nor until the expiration of the time for filing a petition 41 with the tax appeals tribunal contesting such notice, nor, if a petition 42 with respect to the taxable year has been both served upon the commis- 43 sioner of finance and filed with the tax appeals tribunal, until the 44 decision of the tax appeals tribunal has become final. For exception in 45 the case of judicial review of the decision of the tax appeals tribunal, 46 see subdivision (c) of section 11-530 of this chapter. 47 (d) Exceptions for mathematical errors. If a mathematical error 48 appears on a return, including an overstatement of the amount paid as 49 estimated tax, the commissioner of finance shall notify the taxpayer 50 that an amount of tax in excess of that shown upon the return is due, 51 and that such excess has been assessed. 52 Such notice shall not be considered as a notice of deficiency for the 53 purposes of this section, subdivision (f) of section 11-527 of this 54 chapter, limiting credits or refunds after petition to the tax appeals 55 tribunal, or subdivision (b) of section 11-529 of this chapter, author- 56 izing the filing of a petition with the tax appeals tribunal based on a

S. 8578 403 1 notice of deficiency, nor shall such assessment or collection be prohib- 2 ited by the provisions of subdivision (c) of this section. 3 (e) Exception where change in federal or New York state taxable income 4 is not reported. 5 (1) If the taxpayer fails to comply with section 11-519 of this chap- 6 ter in not reporting a change or correction increasing or decreasing the 7 taxpayer's federal or New York state taxable income as reported on the 8 taxpayer's federal or New York state return or in not reporting a change 9 or correction which is treated in the same manner as if it were a defi- 10 ciency for federal or New York state income tax purposes or in not 11 filing an amended return or in not reporting the execution of a notice 12 of waiver described in such section, instead of the mode and time of 13 assessment provided for in subdivision (b) of this section, the commis- 14 sioner of finance may assess a deficiency based upon such changed or 15 corrected federal or New York state taxable income by mailing to the 16 taxpayer a notice of additional tax due specifying the amount of the 17 deficiency, and such deficiency, together with the interest, additions 18 to tax and penalties stated in such notice, shall be deemed assessed on 19 the date such notice is mailed unless within thirty days after the mail- 20 ing of such notice a report of the federal or New York state change or 21 correction or an amended return, where such return was required by 22 section 11-519 of this chapter, is filed accompanied by a statement 23 showing wherein such federal or New York state determination and such 24 notice of additional tax due are erroneous. 25 (2) Such notice shall not be considered as a notice of deficiency for 26 the purposes of this section, subdivision (f) of section 11-527 of this 27 chapter, limiting credits or refunds after petition to the tax appeals 28 tribunal, or subdivision (b) of section 11-529 of this chapter, author- 29 izing the filing of a petition with the tax appeals tribunal based on a 30 notice of deficiency, nor shall such assessment or collection thereof be 31 prohibited by the provisions of subdivision (c) of this section. 32 (3) If the taxpayer is deceased or under a legal disability, a notice 33 of additional tax due may be mailed to his or her last known address in 34 or out of the city, unless the commissioner of finance has received 35 notice of the existence of a fiduciary relationship with respect to the 36 taxpayer. 37 (f) Waiver of restrictions. The taxpayer shall at any time, whether or 38 not a notice of deficiency has been issued, have the right to waive the 39 restrictions on assessment and collection of the whole or any part of 40 the deficiency by a signed notice in writing filed with the commissioner 41 of finance. 42 (g) Deficiency defined. For purposes of this chapter, a deficiency 43 means the amount of the tax imposed by this chapter, less (i) the amount 44 shown as the tax upon the taxpayer's return, whether the return was made 45 or the tax computed by the taxpayer or by the commissioner of finance, 46 and less, (ii) the amounts previously assessed, or collected without 47 assessment, as a deficiency and plus (iii) the amount of any rebates. 48 For the purpose of this definition, the tax imposed by this chapter and 49 the tax shown on the return shall both be determined without regard to 50 payments on account of estimated tax; and a rebate means so much of an 51 abatement, credit, refund or other repayment, whether or not erroneous, 52 made on the ground that the amounts entering into the definition of a 53 deficiency showed a balance in favor of the taxpayer. 54 (h) Exception where change or correction of sales and compensating use 55 tax liability is not reported. (1) If a taxpayer fails to comply with 56 section 11-519.1 of this chapter in not reporting a change or correction

S. 8578 404 1 of his or her sales and compensating use tax liability or in not filing 2 a copy of an amended return or report relating to his or her sales and 3 compensating use tax liability, instead of the mode and time of assess- 4 ment provided for in subdivision (b) of this section, the commissioner 5 of finance may assess a deficiency based upon such changed or corrected 6 sales and compensating use tax liability, as same relates to credits 7 claimed under this chapter by mailing to the taxpayer a notice of addi- 8 tional tax due specifying the amount of the deficiency, and such defi- 9 ciency, together with the interest, additions to tax and penalties stat- 10 ed in such notice, shall be deemed assessed on the date such notice is 11 mailed unless within thirty days after the mailing of such notice a 12 report of the state change or correction or a copy of an amended return 13 or report, where such copy was required by section 11-519.1 of this 14 chapter, is filed accompanied by a statement showing where such state 15 determination and such notice of additional tax due are erroneous. 16 (2) Such notice shall not be considered as a notice of deficiency for 17 the purposes of this section, subdivision (f) of section 11-527 of this 18 chapter, limiting credits or refunds after petition to the tax appeals 19 tribunal, or subdivision (b) of section 11-529 of this chapter, author- 20 izing the filing of a petition with the tax appeals tribunal based on a 21 notice of deficiency, nor shall such assessment or the collection there- 22 of be prohibited by the provisions of subdivision (c) of this section. 23 (3) If the taxpayer is deceased or under a legal disability, a notice 24 of additional tax due may be mailed to his or her last known address in 25 or out of the city, and such notice shall be sufficient for purposes of 26 this chapter. If the commissioner of finance has received notice that a 27 person is acting for the taxpayer in a fiduciary capacity, a copy of 28 such notice shall also be mailed to the fiduciary named in such notice. 29 § 11-522 Assessment. (a) Assessment date. The amount of tax which a 30 return shows to be due, or the amount of tax which a return would have 31 shown to be due but for a mathematical error, shall be deemed to be 32 assessed on the date of filing of the return, including any amended 33 return showing an increase of tax. In the case of a return properly 34 filed without computation of tax, the tax computed by the commissioner 35 of finance shall be deemed to be assessed on the date on which payment 36 is due. If a notice of deficiency has been mailed, the amount of the 37 deficiency shall be deemed to be assessed on the date specified in 38 subdivision (b) of section 11-521 of this chapter if no petition is both 39 served on the commissioner of finance and filed with the tax appeals 40 tribunal, or if a petition is filed, then upon the date when a decision 41 of the tax appeals tribunal establishing the amount of the deficiency 42 becomes final. 43 If an amended return or report filed pursuant to section 11-519 of 44 this chapter concedes the accuracy of a federal or New York state 45 adjustment, change or correction, any deficiency in tax under this chap- 46 ter resulting therefrom shall be deemed to be assessed on the date of 47 filing such report or amended return, and such assessment shall be time- 48 ly notwithstanding section 11-523 of this chapter. 49 If a report or amended return or report filed pursuant to section 50 11-519.1 of this chapter concedes the accuracy of a state change or 51 correction of sales and compensating use tax liability, any deficiency 52 in tax under this chapter resulting therefrom shall be deemed assessed 53 on the date of filing such report, and such assessment shall be timely 54 notwithstanding section 11-523 of this chapter. 55 If a notice of additional tax due, as prescribed in subdivision (e) of 56 section 11-521 of this chapter has been mailed, the amount of the defi-

S. 8578 405 1 ciency shall be deemed to be assessed on the date specified in such 2 subdivision unless within thirty days after the mailing of such notice a 3 report of the federal or New York state change or correction or an 4 amended return, where such return was required by section 11-519 of this 5 chapter is filed accompanied by a statement showing wherein such federal 6 or New York state determination and such notice of additional tax due 7 are erroneous. 8 If a notice of additional tax due, as prescribed in subdivision (h) of 9 section 11-521 of this chapter, has been mailed, the amount of the defi- 10 ciency shall be deemed to be assessed on the date specified in such 11 subdivision unless within thirty days after the mailing of such notice a 12 report of the state change or correction, or a copy of an amended return 13 or report, where such copy was required by section 11-519.1 of this 14 chapter, is filed accompanied by a statement showing wherein such state 15 determination and such notice of additional tax due are erroneous. 16 Any amount paid as a tax or in respect of a tax, other than amounts 17 paid as estimated income tax, shall be deemed to be assessed upon the 18 date of receipt of payment, notwithstanding any other provisions. 19 (b) Other assessment powers. If the mode or time for the assessment of 20 any tax under this chapter, including interest, additions to tax and 21 assessable penalties, is not otherwise provided for, the commissioner of 22 finance may establish the same by regulations. 23 (c) Estimated income tax. No unpaid amount of estimated tax under 24 section one hundred sixteen shall be assessed. 25 (d) Supplemental assessment. The commissioner of finance may, at any 26 time within the period prescribed for assessment, make a supplemental 27 assessment, subject to the provisions of section 11-521 of this chapter 28 where applicable, whenever it is ascertained that any assessment is 29 imperfect or incomplete in any material respect. 30 (e) Cross-reference. For assessment in case of jeopardy, see section 31 11-534 of this chapter. 32 § 11-523 Limitations on assessment. (a) General. Except as otherwise 33 provided in this section, any tax under this chapter shall be assessed 34 within three years after the return was filed, whether or not such 35 return was filed on or after the date prescribed. 36 (b) Time return deemed filed. For purposes of this section a return 37 of tax filed before the last day prescribed by law or by regulations 38 promulgated pursuant to law for the filing thereof, shall be deemed to 39 be filed on such last day. 40 (c) Exceptions. (1) Assessment at any time. The tax may be assessed 41 at any time if: 42 (A) no return is filed, 43 (B) a false or fraudulent return is filed with intent to evade tax, 44 (C) the taxpayer fails to comply with section 11-519 of this chapter 45 in not reporting a change or correction increasing or decreasing the 46 taxpayer's federal or New York state taxable income as reported on the 47 taxpayer's federal or New York state income tax return, or the execution 48 of a notice of waiver and the changes or corrections on which it is 49 based or in not reporting a change or correction which is treated in the 50 same manner as if it were a deficiency for federal or New York state 51 income tax purposes, or in not filing an amended return, or 52 (D) the taxpayer fails to file a report or amended return or report 53 required under section 11-519.1 of this chapter, in respect of a change 54 or correction of sales and compensating use tax liability, relating to 55 the purchase or use of items for which a sales or compensating use tax 56 credit against the tax imposed by this chapter was claimed.

S. 8578 406 1 (2) Extension by agreement. Where, before the expiration of the time 2 prescribed in this section for the assessment of tax, both the commis- 3 sioner of finance and the taxpayer have consented in writing to its 4 assessment after such time, the tax may be assessed at any time prior to 5 the expiration of the period agreed upon. The period so agreed upon may 6 be extended by subsequent agreements in writing made before the expira- 7 tion of the period previously agreed upon. 8 (3) Report of changed or corrected federal or New York state income. 9 If the taxpayer shall, pursuant to section 11-519 of this chapter, 10 report a change or correction or file an amended return increasing or 11 decreasing federal or New York state taxable income or report the 12 execution of a notice of waiver and the changes and corrections on which 13 it is based, or a change or correction which is treated in the same 14 manner as if it were a deficiency for federal or New York state income 15 tax purposes, the assessment, if not deemed to have been made upon the 16 filing of the report or amended return, may be made at any time within 17 two years after such report or amended return was filed. The amount of 18 such assessment of tax shall not exceed the amount of the increase in 19 city tax attributable to such federal or New York state change or 20 correction. The provisions of this paragraph shall not affect the time 21 within which or the amount for which an assessment may otherwise be 22 made. 23 (4) Deficiency attributable to net operating loss carryback. If a 24 deficiency is attributable to the application to the taxpayer of a net 25 operating loss carryback, it may be assessed at any time that a defi- 26 ciency for the taxable year of the loss may be assessed. 27 (5) Recovery of erroneous refund. An erroneous refund shall be 28 considered an underpayment of tax on the date made, and an assessment of 29 a deficiency arising out of an erroneous refund may be made at any time 30 within two years from the making of the refund, except that the assess- 31 ment may be made within five years from the making of the refund if it 32 appears that any part of the refund was induced by fraud or misrepresen- 33 tation of a material fact. 34 (6) Request for prompt assessment. If a return is required for a 35 decedent or for his or her estate during the period of administration, 36 the tax shall be assessed within eighteen months after written request 37 therefor, made after the return is filed, by the executor, administrator 38 or other person representing the estate of such decedent, but not more 39 than three years after the return was filed, except as otherwise 40 provided in this subdivision and subdivision (d) of this section. 41 (7) Report on use of certain property. Under the circumstances 42 described in paragraph two of subdivision (b) of section 11-509 of this 43 chapter, the tax may be assessed within three years after the filing of 44 a return reporting that property has been used for purposes other than 45 research and development to a greater extent than originally reported. 46 (8) Report concerning waste treatment facility. Under the circum- 47 stances described in paragraph (i) of section 11-507 of this chapter, 48 the tax may be assessed within three years after the filing of the 49 return containing the information required by such paragraph. 50 (9) Report of changed or corrected sales and compensating use tax 51 liability. If the taxpayer files a report or amended return or report 52 required under section 11-519.1 of this chapter, in respect of a change 53 or correction of sales and compensating use tax liability, the assess- 54 ment, if not deemed to have been made upon the filing of the report, may 55 be made at any time within two years after such report or amended return 56 or report was filed. The amount of such assessment of tax shall not

S. 8578 407 1 exceed the amount of the increase in city tax attributable to such state 2 change or correction. The provisions of this paragraph shall not affect 3 the time within which or the amount for which an assessment may other- 4 wise be made. 5 (d) Omission of income on return. The tax may be assessed at any time 6 within six years after the return was filed if (1) a taxpayer omits from 7 his or her city unincorporated business gross income an amount properly 8 includible therein which is in excess of twenty-five per centum of the 9 amount of city unincorporated business gross income stated in the 10 return, or (2) an estate or trust omits income from its return in an 11 amount in excess of twenty-five percent of its income determined as if 12 it were an individual. 13 For purposes of this subdivision there shall not be taken into account 14 any amount which is omitted in the return if such amount is disclosed in 15 the return, or in a statement attached to the return, in a manner 16 adequate to apprise the commissioner of finance of the nature and amount 17 of such item. 18 (e) Suspension of running of period of limitation. The running of the 19 period of limitations on assessment or collection of tax or other 20 amount, or of a transferee's liability, shall, after the mailing of a 21 notice of deficiency, be suspended for the period during which the 22 commissioner of finance is prohibited under subdivision (c) of section 23 11-521 of this chapter from making the assessment or from collecting by 24 levy. 25 § 11-524 Interest on underpayment. (a) General. If any amount of tax 26 is not paid on or before the last date prescribed in this chapter for 27 payment, interest on such amount at the underpayment rate set by the 28 commissioner of finance pursuant to section 11-537 of this chapter, or, 29 if no rate is set, at the rate of seven and one-half percent per annum 30 shall be paid for the period from such last date to the date paid, 31 whether or not any extension of time for payment was granted. Interest 32 under this subdivision shall not be paid if the amount thereof is less 33 than one dollar. 34 (b) Exception as to estimated tax. This section shall not apply to 35 any failure to pay estimated tax under section 11-512 of this chapter. 36 (c) Exception for mathematical error. No interest shall be imposed on 37 any underpayment of tax due solely to mathematical error if the taxpayer 38 files a return within the time prescribed in this chapter, including any 39 extension of time, and pays the amount of underpayment within three 40 months after the due date of such return, as it may be extended. 41 (d) Suspension of interest on deficiencies. If a waiver of 42 restrictions on assessment of a deficiency has been filed by the taxpay- 43 er, and if notice and demand by the commissioner of finance for payment 44 of such deficiency is not made within thirty days after the filing of 45 such waiver, interest shall not be imposed on such deficiency for the 46 period beginning immediately after such thirtieth day and ending with 47 the date of notice and demand. 48 (e) Tax reduced by carryback. If the amount of tax for any taxable 49 year is reduced by reason of a carryback of a net operating loss, such 50 reduction in tax shall not affect the computation of interest under this 51 section for the period ending with the filing date for the taxable year 52 in which the net operating loss arises. Such filing date shall be deter- 53 mined without regard to extensions of time to file. 54 (f) Interest treated as tax. Interest under this section shall be 55 paid upon notice and demand and shall be assessed, collected and paid in 56 the same manner as tax. Any reference in this chapter to the tax

S. 8578 408 1 imposed by this chapter shall be deemed also to refer to interest 2 imposed by this section on such tax. 3 (g) Interest on penalties or additions to tax. Interest shall be 4 imposed under subdivision (a) of this section in respect of any assessa- 5 ble penalty or addition to tax only if such assessable penalty or addi- 6 tion to tax is not paid within ten days from the date of the notice and 7 demand therefor under subdivision (b) of section 11-532 of this chapter, 8 and in such case interest shall be imposed only for the period from such 9 date of the notice and demand to the date of payment. 10 (h) Payment within ten days after notice and demand. If notice and 11 demand is made for payment of any amount under subdivision (b) of 12 section 11-532 of this chapter, and if such amount is paid within ten 13 days after the date of such notice and demand, interest under this 14 section on the amount so paid shall not be imposed for the period after 15 the date of such notice and demand. 16 (i) Limitation on assessment and collection. Interest prescribed 17 under this section may be assessed and collected at any time during the 18 period within which the tax or other amount to which such interest 19 relates may be assessed and collected, respectively. 20 (j) Interest on erroneous refund. Any portion of tax or other amount 21 which has been erroneously refunded, and which is recoverable by the 22 commissioner of finance, shall bear interest at the underpayment rate 23 set by the commissioner of finance pursuant to section 11-537 of this 24 chapter, or, if no rate is set, at the rate of seven and one-half 25 percent per annum from the date of the payment of the refund, but only 26 if it appears that any part of the refund was induced by fraud or a 27 misrepresentation of a material fact. 28 (k) Satisfaction by credits. If any portion of a tax is satisfied by 29 credit of an overpayment, then no interest shall be imposed under this 30 section on the portion of the tax so satisfied for any period during 31 which, if the credit had not been made, interest would have been allow- 32 able with respect to such overpayment. 33 § 11-525 Additions to tax and civil penalties. (a) (1) Failure to 34 file tax return. (A) In case of failure to file a tax return under this 35 chapter on or before the prescribed date, determined with regard to any 36 extension of time for filing, unless it is shown that such failure is 37 due to reasonable cause and not due to willful neglect, there shall be 38 added to the amount required to be shown as tax on such return five 39 percent of the amount of such tax if the failure is for not more than 40 one month, with an additional five percent for each additional month or 41 fraction thereof during which such failure continues, not exceeding 42 twenty-five percent in the aggregate. 43 (B) In the case of a failure to file a tax return within sixty days of 44 the date prescribed for filing of such return, determined with regard to 45 any extension of time for filing, unless it is shown that such failure 46 is due to reasonable cause and not due to willful neglect, the addition 47 to tax under subparagraph (A) of this paragraph shall not be less than 48 the lesser of one hundred dollars or one hundred percent of the amount 49 required to be shown as tax on such return. 50 (C) For purposes of this paragraph, the amount of tax required to be 51 shown on the return shall be reduced by the amount of any part of the 52 tax which is paid on or before the date prescribed for payment of the 53 tax and by the amount of any credit against the tax which may be claimed 54 upon the return. 55 (2) Failure to pay tax shown on return. In case of failure to pay the 56 amounts shown as tax on any return required to be filed under this chap-

S. 8578 409 1 ter on or before the prescribed date, determined with regard to any 2 extension of time for payment, unless it is shown that such failure is 3 due to reasonable cause and not due to willful neglect, there shall be 4 added to the amount shown as tax on such return one-half of one percent 5 of the amount of such tax if the failure is not for more than one month, 6 with an additional one-half of one percent for each additional month or 7 fraction thereof during which such failure continues, not exceeding 8 twenty-five percent in the aggregate. For the purpose of computing the 9 addition for any month, the amount of tax shown on the return shall be 10 reduced by the amount of any part of the tax which is paid on or before 11 the beginning of such month and by the amount of any credit against the 12 tax which may be claimed upon the return. If the amount of tax required 13 to be shown on a return is less than the amount shown as tax on such 14 return, this paragraph shall be applied by substituting such lower 15 amount. 16 (3) Failure to pay tax required to be shown on return. In case of 17 failure to pay any amount in respect of any tax required to be shown on 18 a return required to be filed under this chapter which is not so shown, 19 including an assessment made pursuant to subdivision (a) of section 20 11-522 of this chapter, within ten days of the date of a notice and 21 demand therefor, unless it is shown that such failure is due to reason- 22 able cause and not due to willful neglect, there shall be added to the 23 amount of tax stated in such notice and demand one-half of one percent 24 of such tax if the failure is not for more than one month, with an addi- 25 tional one-half of one percent for each additional month or fraction 26 thereof during which such failure continues, not exceeding twenty-five 27 percent in the aggregate. For the purpose of computing the addition for 28 any month, the amount of tax stated in the notice and demand shall be 29 reduced by the amount of any part of the tax which is paid before the 30 beginning of such month. 31 (4) Limitations on additions. (A) With respect to any return the 32 amount of the addition under paragraph one of this subdivision shall be 33 reduced by the amount of the addition under paragraph two of this subdi- 34 vision for any month to which an addition applies under both paragraphs 35 one and two of this subdivision. In any case described in subparagraph 36 (B) of paragraph one of this subdivision, the amount of the addition 37 under such paragraph one shall not be reduced below the amount provided 38 in such subparagraph. 39 (B) With respect to any return, the maximum amount of the addition 40 permitted under paragraph three of this subdivision shall be reduced by 41 the amount of the addition under paragraph one of this subdivision, 42 determined without regard to subparagraph (B) of such paragraph one, 43 which is attributable to the tax for which the notice and demand is made 44 and which is not paid within ten days of such notice and demand. 45 (b) Deficiency due to negligence. (1) If any part of a deficiency is 46 due to negligence or intentional disregard of this chapter or rules or 47 regulations hereunder, but without intent to defraud, there shall be 48 added to the tax an amount equal to five percent of the deficiency. 49 (2) There shall be added to the tax, in addition to the amount deter- 50 mined under paragraph one of this subdivision, an amount equal to fifty 51 percent of the interest payable under subdivision (a) of section 11-524 52 with respect to the portion of the deficiency described in such para- 53 graph one which is attributable to the negligence or intentional disre- 54 gard referred to in such paragraph one, for the period beginning on the 55 last date prescribed by law for payment of such deficiency, determined

S. 8578 410 1 without regard to any extension, and ending on the date of the assess- 2 ment of the tax, or, if earlier, the date of the payment of the tax. 3 (3) If any payment is shown on a return made by a payor with respect 4 to dividends, patronage dividends and interest under subsection (a) of 5 section six thousand forty-two, subsection (a) of section six thousand 6 forty-four or subsection (a) of section six thousand forty-nine of the 7 internal revenue code of nineteen hundred fifty-four, respectively, and 8 the payee fails to include any portion of such payment in unincorporated 9 business gross income, as that term is defined in section 11-506, any 10 portion of a deficiency attributable to such failure shall be treated, 11 for purposes of this subdivision, as due to negligence in the absence of 12 clear and convincing evidence to the contrary. If any addition to tax is 13 imposed under this subdivision by reason of this paragraph, the amount 14 of the addition to tax imposed by paragraph one of this subdivision 15 shall be five percent of the portion of the deficiency which is attrib- 16 utable to the failure described in this paragraph. 17 (c) Failure to file declaration or underpayment of estimated tax. If 18 any taxpayer fails to file a declaration of estimated tax or fails to 19 pay all or any part of an installment of estimated tax, the taxpayer 20 shall be deemed to have made an underpayment of estimated tax. There 21 shall be added to the tax for the taxable year an amount at the under- 22 payment rate set by the commissioner of finance pursuant to section 23 11-537 of this chapter, or, if no rate is set, at the rate of seven and 24 one-half percent per annum upon the amount of the underpayment for the 25 period of the underpayment but not beyond the fifteenth day of the 26 fourth month following the close of the taxable year. The amount of the 27 underpayment shall be the excess of the amount of the installment which 28 would be required to be paid if the estimated tax were equal to ninety 29 percent of the tax shown on the return for the taxable year, or if no 30 return was filed, ninety percent of the tax for such year, over the 31 amount, if any, of the installment paid on or before the last day 32 prescribed for such payment. No underpayment shall be deemed to exist 33 with respect to a declaration or installment otherwise due on or after 34 the taxpayer's death. In any case in which there would be no underpay- 35 ment if this subdivision were applied by substituting "eighty percent" 36 for "ninety percent" where it appears in this subdivision, the addition 37 to tax under this subdivision shall be equal to seventy-five percent of 38 the amount otherwise determined under this subdivision. 39 (d) Exception to addition for underpayment of estimated tax. The addi- 40 tion to tax under subdivision (c) of this section with respect to any 41 underpayment of any installment shall not be imposed if the total amount 42 of all payments of estimated tax made on or before the last date 43 prescribed for the payment of such installment equals or exceeds which- 44 ever of the following is the lesser: 45 (1) The amount which would have been required to be paid on or before 46 such date if the estimated tax were whichever of the following is the 47 least: 48 (A) The tax shown on the return of the taxpayer for the preceding 49 taxable year, if a return showing a liability for tax was filed by the 50 taxpayer for the preceding taxable year and such preceding year was a 51 taxable year of twelve months, or 52 (B) An amount equal to the tax computed, at the rates applicable to 53 the taxable year, but otherwise on the basis of the facts shown on the 54 taxpayer's return for, and the law applicable to, the preceding taxable 55 year, or

S. 8578 411 1 (C) An amount equal to ninety percent of the tax for the taxable year 2 computed by placing on an annualized basis the unincorporated business 3 taxable income for the months in the taxable year ending before the 4 month in which the installment is required to be paid. For purposes of 5 this subparagraph, the unincorporated business taxable income shall be 6 placed on an annualized basis by: 7 (i) multiplying by twelve, or, in the case of a taxable year of less 8 than twelve months, the number of months in the taxable year, the unin- 9 corporated business taxable income for the months in the taxable year 10 ending before the month in which the installment is required to be paid, 11 and 12 (ii) dividing the resulting amount by the number of months in the 13 taxable year ending before the month in which such installment date 14 falls, or 15 (D)(i) If the base period percentage for any six consecutive months of 16 the taxable year equals or exceeds seventy percent, an amount equal to 17 ninety percent of the tax determined in the following manner: 18 (I) take the unincorporated business taxable income for all months 19 during the taxable year preceding the filing month, 20 (II) divide such amount by the base period percentage for all months 21 during the taxable year preceding the filing month, 22 (III) determine the tax on the amounts determined under subclause (II) 23 of this clause, and 24 (IV) multiply the tax determined under subclause (III) of this clause 25 by the base period percentage for the filing month and all months during 26 the taxable year preceding the filing month. 27 (ii) For purposes of clause (i) of this subparagraph: 28 (I) the base period percentage for any period of months shall be the 29 average percent which the unincorporated business taxable income for the 30 corresponding months in each of the three preceding years bears to the 31 unincorporated business taxable income for the three preceding taxable 32 years. The commissioner of finance may by regulations provide for the 33 determination of the base period percentage in the case of new unincor- 34 porated businesses and other similar circumstances, and 35 (II) the term "filing month" means the month in which the installment 36 is required to be paid; 37 (2) An amount equal to ninety percent of the tax computed, at the 38 rates applicable to the taxable year, on the basis of the actual unin- 39 corporated business taxable income for the months in the taxable year 40 ending before the month in which the installment is required to be paid. 41 (e)(1) Except as provided in paragraph two of this subdivision, 42 subparagraphs (A) and (B) of paragraph one of subdivision (d) of this 43 section shall not apply in the case of any taxpayer which had unincorpo- 44 rated business taxable income, or the portion thereof allocated within 45 the city, of one million dollars or more for any taxable year during the 46 three taxable years immediately preceding the taxable year involved. 47 (2) The amount treated as the estimated tax under subparagraphs (A) 48 and (B) of paragraph one of subdivision (d) of this section shall in no 49 event be less than seventy-five percent of the tax shown on the return 50 for the taxable year beginning in nineteen hundred eighty-three or, if 51 no return was filed, seventy-five percent of the tax for such year. 52 (f) Deficiency due to fraud. (1) If any part of a deficiency is due to 53 fraud, there shall be added to the tax an amount equal to two times of 54 the deficiency. 55 (2) The addition to tax under this subdivision shall be in lieu of any 56 other addition to tax imposed by subdivision (a) or (b) of this section.

S. 8578 412 1 (g) Additional penalty. Any taxpayer who with fraudulent intent shall 2 fail to pay any tax, or to make, render, sign or certify any return or 3 declaration of estimated tax, or to supply any information within the 4 time required by or under this chapter shall be liable to a penalty of 5 not more than one thousand dollars, in addition to any other amounts 6 required under this chapter, to be imposed, assessed and collected by 7 the commissioner of finance. The commissioner of finance shall have the 8 power, in his or her discretion, to waive, reduce or compromise any 9 penalty under this subdivision. 10 (h) Additions treated as tax. The additions to tax and penalties 11 provided by this section shall be paid upon notice and demand and shall 12 be assessed, collected and paid in the same manner as taxes, and any 13 reference in this chapter to tax or tax imposed by this chapter, shall 14 be deemed also to refer to the additions to tax and penalties provided 15 by this section. For purposes of section 11-521, this subdivision shall 16 not apply to: 17 (1) any addition to tax under subdivision (a) of this section except 18 as to that portion attributable to a deficiency; 19 (2) any addition to tax under subdivision (c) of this section; and 20 (3) any additional penalties under subdivisions (g) and (k) of this 21 section. 22 (i) Determination of deficiency. For purposes of subdivisions (b) and 23 (c) of this section, the amounts shown as the tax by the taxpayer upon 24 his or her return shall be taken into account in determining the amount 25 of the deficiency only if such return was filed on or before the last 26 day prescribed for the filing of such return, determined with regard to 27 any extension of time for such filing. 28 (j) Substantial understatement of liability. If there is a substantial 29 understatement of tax for any taxable year, there shall be added to the 30 tax an amount equal to ten percent of the amount of any underpayment 31 attributable to such understatement. For purposes of this subdivision, 32 there is a substantial understatement of tax for any taxable year if the 33 amount of the understatement for the taxable year exceeds the greater of 34 ten percent of the tax required to be shown on the return for the taxa- 35 ble year, or five thousand dollars. For purposes of the this subdivi- 36 sion, the term "understatement" means the excess of the amount of the 37 tax required to be shown on the return for the taxable year, over the 38 amount of the tax imposed which is shown on the return, reduced by any 39 rebate, within the meaning of subdivision (g) of section 11-521 of this 40 chapter. The amount of such understatement shall be reduced by that 41 portion of the understatement which is attributable to the tax treatment 42 of any item by the taxpayer if there is or was substantial authority for 43 such treatment, or any item with respect to which the relevant facts 44 affecting the item's tax treatment are adequately disclosed in the 45 return or in a statement attached to the return. The commissioner of 46 finance may waive all or any part of the addition to tax provided by 47 this subdivision on a showing by the taxpayer that there was reasonable 48 cause for the understatement, or part thereof, and that the taxpayer 49 acted in good faith. 50 (k) Aiding or assisting in the giving of fraudulent returns, reports, 51 statements or other documents. (1) Any person who, with the intent that 52 tax be evaded, shall, for a fee or other compensation or as an incident 53 to the performance of other services for which such person receives 54 compensation, aid or assist in, or procure, counsel, or advise the prep- 55 aration or presentation under, or in connection with any matter arising 56 under this chapter of any return, report, declaration, statement or

S. 8578 413 1 other document which is fraudulent or false as to any material matter, 2 or supply any false or fraudulent information, whether or not such 3 falsity or fraud is with the knowledge or consent of the person author- 4 ized or required to present such return, report, declaration, statement 5 or other document shall pay a penalty not exceeding ten thousand 6 dollars. 7 (2) For purposes of paragraph one of this subdivision, the term 8 "procures" includes ordering, or otherwise causing, a subordinate to do 9 an act, and knowing of, and not attempting to prevent, participation by 10 a subordinate in an act. The term "subordinate" means any other person, 11 whether or not a member, employee, or agent of the taxpayer involved, 12 over whose activities the person has direction, supervision, or control. 13 (3) For purposes of paragraph one of this subdivision, a person 14 furnishing typing, reproducing, or other mechanical assistance with 15 respect to a document shall not be treated as having aided or assisted 16 in the preparation of such document by reason of such assistance. 17 (4) The penalty imposed by this subdivision shall be in addition to 18 any other penalty provided by law. 19 (l) False or fraudulent document penalty. Any taxpayer that submits a 20 false or fraudulent document to the department shall be subject to a 21 penalty of one hundred dollars per document submitted, or five hundred 22 dollars per tax return submitted. Such penalty shall be in addition to 23 any other penalty or addition provided by law. 24 § 11-526 Overpayment. (a) General. The commissioner of finance, 25 within the applicable period of limitations, may credit an overpayment 26 of tax and interest on such overpayment against any liability in respect 27 of any tax imposed by this title, on the person who made overpayment, 28 and the balance shall be refunded. Such credit of an overpayment shall 29 be applied before such overpayment, or any portion thereof, is paid to 30 the state commissioner of taxation and finance pursuant to section one 31 hundred seventy-one-m of the tax law. 32 (b) Credits against estimated tax. The commissioner of finance may 33 prescribe regulations providing for the crediting against the estimated 34 tax for any taxable year of the amount determined to be an overpayment 35 of the tax for a preceding taxable year. If any overpayment of tax is 36 so claimed as a credit against estimated tax for the succeeding taxable 37 year, such amount shall be considered as a payment of the tax for the 38 succeeding taxable year, whether or not claimed as a credit in the 39 declaration of estimated tax for such succeeding taxable year, and no 40 claim for credit or refund of such overpayment shall be allowed for the 41 taxable year for which the overpayment arises. 42 (c) Rule where no tax liability. If there is no tax liability for a 43 period in respect of which an amount is paid as tax, such amount shall 44 be considered an overpayment. 45 (d) Assessment and collection after limitation period. If any amount 46 of income tax is assessed or collected after the expiration of the peri- 47 od of limitations properly applicable thereto, such amount shall be 48 considered an overpayment. 49 (e) Notwithstanding any provision of law in article fifty-two of the 50 civil practice law and rules to the contrary, the procedures for the 51 enforcement of money judgments shall not apply to the department of 52 finance, or to any officer or employee of the department of finance, as 53 a garnishee, with respect to any amount of money to be refunded or cred- 54 ited to a taxpayer under this chapter. 55 § 11-527 Limitation on credit or refund. (a) General. Claim for credit 56 or refund of an overpayment of tax shall be filed by the taxpayer within

S. 8578 414 1 three years from the time the return was filed or two years from the 2 time the tax was paid, whichever of such periods expires the later, or 3 if no return was filed, within two years from the time the tax was paid. 4 If the claim is filed within the three year period, the amount of the 5 credit or refund shall not exceed the portion of the tax paid within the 6 three years immediately preceding the filing of the claim plus the peri- 7 od of any extension of time for filing the return. If the claim is not 8 filed within the three year period, but is filed within the two year 9 period, the amount of the credit or refund shall not exceed the portion 10 of the tax paid during the two years immediately preceding the filing of 11 the claim. Except as otherwise provided in this section, if no claim is 12 filed, the amount of a credit or refund shall not exceed the amount 13 which would be allowable if a claim had been filed on the date the cred- 14 it or refund is allowed. 15 (b) Extension of time by agreement. If an agreement under the 16 provisions of paragraph two of subdivision (c) of section 11-523 of this 17 chapter, extending the period for assessment of income tax, is made 18 within the period prescribed in subdivision (a) of this section for the 19 filing of a claim for credit or refund the period for filing a claim for 20 credit or refund, or for making credit or refund if no claims filed, 21 shall not expire prior to six months after the expiration of the period 22 within which an assessment may be made pursuant to the agreement or any 23 extension thereof. The amount of such credit or refund shall not exceed 24 the portion of the tax paid after the execution of the agreement and 25 before the filing of the claim or the making of the credit or refund, as 26 the case may be, plus the portion of the tax paid within the period 27 which would be applicable under subdivision (a) of this section if a 28 claim had been filed on the date the agreement was executed. 29 (c) Notice of change or correction of federal or New York state taxa- 30 ble income. If a taxpayer is required by section 11-519 of this chapter 31 to report a change or correction in federal or New York state taxable 32 income reported on the taxpayer's federal or New York state income tax 33 return, or to report a change or correction which is treated in the same 34 manner as if it were an overpayment for federal or New York state income 35 tax purposes, or to file an amended return with the commissioner of 36 finance, claim for credit or refund of any resulting overpayment of tax 37 shall be filed by the taxpayer within two years from the time the notice 38 of such change or correction or such amended return was required to be 39 filed with the commissioner of finance. If the report or amended return 40 required by section 11-519 of this chapter is not filed within the nine- 41 ty day period therein specified, no interest shall be payable on any 42 claim for credit or refund of the overpayment attributable to the feder- 43 al or New York state change or correction. The amount of such credit or 44 refund shall not exceed the amount of the reduction in tax attributable 45 to such federal or New York state change, correction or items amended on 46 the taxpayer's amended federal or New York state income tax return. This 47 subdivision shall not affect the time within which or the amount for 48 which a claim for credit or refund may be filed apart from this subdivi- 49 sion. 50 (d) Overpayment attributable to net operating loss carryback. A claim 51 for credit or refund of so much of an overpayment as is attributable to 52 the application to the taxpayer of a net operating loss carryback shall 53 be filed within three years from the time the return was due for the 54 taxable year of the loss, or within the period prescribed in subdivision 55 (b) of this section in respect of such taxable year, or within the peri- 56 od prescribed in subdivision (c) of this section, where applicable in

S. 8578 415 1 respect of the taxable year to which the net operating loss is carried 2 back, whichever expires the latest. 3 (e) Failure to file claim within prescribed period. No credit or 4 refund shall be allowed or made, except as provided in subdivision (f) 5 of this section or subdivision (d) of section 11-530 of this chapter 6 after the expiration of the applicable period of limitation specified in 7 this chapter unless a claim for credit or refund is filed by the taxpay- 8 er within such period. Any later credit shall be void and any later 9 refund erroneous. No period of limitations specified in any other law 10 shall apply to the recovery by a taxpayer of moneys paid in respect of 11 taxes under this chapter. 12 (f) Effect of petition to tax appeals tribunal. If a notice of defi- 13 ciency for a taxable year has been mailed to the taxpayer under section 14 11-521 of this chapter and if the taxpayer files a timely petition with 15 the tax appeals tribunal under section 11-529 of this chapter, the tax 16 appeals tribunal may determine that the taxpayer has made an overpayment 17 for such year, whether or not it also determines a deficiency for such 18 year. No separate claim for credit or refund for such year shall be 19 filed, and no credit or refund for such year shall be allowed or made, 20 except: 21 (1) as to overpayments determined by a decision of the tax appeals 22 tribunal which has become final; 23 (2) as to any amount collected in excess of an amount computed in 24 accordance with the decision of the tax appeals tribunal which has 25 become final; 26 (3) as to any amount collected after the period of limitation upon the 27 making of levy for collection has expired; and 28 (4) as to any amount claimed as a result of a change or correction 29 described in subdivision (c) of this section. 30 (g) Limit on amount of credit or refund. The amount of overpayment 31 determined under subdivision (f) of this section shall, when the deci- 32 sion of the tax appeals tribunal has become final, be credited or 33 refunded in accordance with subdivision (a) of section 11-526 of this 34 chapter and shall not exceed the amount of tax which the tax appeals 35 tribunal determines as part of its decision was paid: 36 (1) after the mailing of the notice of deficiency, or 37 (2) within the period which would be applicable under subdivision (a), 38 (b) or (c) of this section, if on the date of the mailing of the notice 39 of deficiency a claim has been filed, whether or not filed, stating the 40 grounds upon which the tax appeals tribunal finds that there is an over- 41 payment. 42 (h) Early return. For purposes of this section, any return filed 43 before the last day prescribed for the filing thereof shall be consid- 44 ered as filed on such last day, determined without regard to any exten- 45 sion of time granted the taxpayer. 46 (i) Prepaid tax. For purposes of this section, any tax paid by the 47 taxpayer before the last day prescribed for its payment and any amount 48 paid by the taxpayer as estimated tax for a taxable year shall be deemed 49 to have been paid by the taxpayer on the fifteenth day of the fourth 50 month following the close of his or her taxable year with respect to 51 which such amount constitutes a credit or payment, except that for taxa- 52 ble years beginning on or after January first, two thousand sixteen, in 53 the case of a taxpayer classified as a partnership for federal income 54 tax purposes, such amount shall be deemed to have been paid on the 55 fifteenth day of the third month following the close of his or her taxa-

S. 8578 416 1 ble year with respect to which such amount constitutes a credit or 2 payment. 3 (j) Cross reference. For provision barring refund of overpayment cred- 4 ited against tax of a succeeding year, see subdivision (d) of section 5 11-526 of this chapter. 6 (k) Notice of change or correction of sales and compensating use tax 7 liability. If a taxpayer is required by section 11-519.1 of this chapter 8 to file a report or amended return or report in respect of a change or 9 correction of his or her sales and compensating use tax liability, claim 10 for credit or refund of any resulting overpayment of tax shall be filed 11 by the taxpayer within two years from the time such report or amended 12 return or report was required to be filed with the commissioner of 13 finance. The amount of such credit or refund shall be computed without 14 change of the allocation of income upon which the taxpayer's return, or 15 any additional assessment, was based, and shall not exceed the amount of 16 the reduction in tax attributable to such change or correction of sales 17 and compensating use tax liability. 18 This subdivision shall not affect the time within which or the amount 19 for which a claim for credit or refund may be filed apart from this 20 subdivision. 21 § 11-528 Interest on overpayment. (a) General. Notwithstanding the 22 provisions of section three-a of the general municipal law, interest 23 shall be allowed and paid as follows at the overpayment rate set by the 24 commissioner of finance pursuant to section 11-537 of this chapter, or, 25 if no rate is set, at the rate of six percent per annum upon any over- 26 payment in respect of the tax imposed by this chapter: 27 (1) from the date of the overpayment to the due date of an amount 28 against which a credit is taken; or 29 (2) from the date of the overpayment to a date, to be determined by 30 the commissioner of finance, preceding the date of a refund check by not 31 more than thirty days, whether or not such refund check is accepted by 32 the taxpayer after tender of such check to the taxpayer. The acceptance 33 of such check shall be without prejudice to any right of the taxpayer to 34 claim any additional overpayment and interest thereon. 35 (3) Late and amended returns and claims for credit or refund. 36 Notwithstanding paragraph one or two of this subdivision, in the case of 37 an overpayment claimed on a return of tax which is filed after the last 38 date prescribed for filing such return, determined with regard to exten- 39 sions, or claimed on an amended return of tax or claimed on a claim, for 40 credit or refund, no interest shall be allowed or paid for any day 41 before the date on which such return or claim is filed. 42 (4) Interest on certain refunds. To the extent provided for in regu- 43 lations promulgated by the commissioner of finance, if an item of 44 income, gain, loss, deduction or credit is changed from the taxable year 45 or period in which it is reported to the taxable year or period in which 46 it belongs and the change results in an underpayment in a taxable year 47 or period and an overpayment in some other taxable year or period, the 48 provisions of paragraph three of this subdivision with respect to an 49 overpayment shall not be applicable to the extent that the limitation in 50 such paragraph on the right to interest would result in a taxpayer not 51 being allowed interest for a length of time with respect to an overpay- 52 ment while being required to pay interest on an equivalent amount of the 53 related underpayment. However, this paragraph shall not be construed as 54 limiting or mitigating the effect of any statute of limitations or any 55 other provisions of law relating to the authority of such commissioner

S. 8578 417 1 to issue a notice of deficiency or to allow a credit or refund of an 2 overpayment. 3 (5) Amounts of less than one dollar. No interest shall be allowed or 4 paid if the amount thereof is less than one dollar. 5 (b) Advance payment of tax and payment of estimated tax. The 6 provisions of subdivisions (h) and (i) of section 11-527 of this chapter 7 applicable in determining the date of payment of tax for purposes of 8 determining the period of limitations on credit or refund, shall be 9 applicable in determining the date of payment for purposes of this 10 section. 11 (c) Refund within three months of claim for overpayment. If any over- 12 payment of tax imposed by this chapter is credited or refunded within 13 three months after the last date prescribed, or permitted by extension 14 of time, for filing the return of such tax on which such overpayment was 15 claimed or within three months after such return was filed, whichever is 16 later, or within three months after an amended return was filed claiming 17 such overpayment or within three months after a claim for credit or 18 refund was filed on which such overpayment was claimed, no interest 19 shall be allowed under this section on any such overpayment. For 20 purposes of this subdivision, any amended return or claim for credit or 21 refund filed before the last day prescribed, or permitted by extension 22 of time, for the filing of the return of tax for such year shall be 23 considered as filed on such last day. 24 (d) Refund of tax caused by carryback. For purposes of this section, 25 if any overpayment of tax imposed by this chapter results from a carry- 26 back of a net operating loss, such overpayment shall be deemed not to 27 have been made prior to the filing date for the taxable year in which 28 such net operating loss arises. Such filing date shall be determined 29 without regard to extensions of time to file. For purposes of subdivi- 30 sion (c) of this section any overpayment described herein shall be 31 treated as an overpayment for the loss year and such subdivision shall 32 be applied with respect to such overpayment by treating the return for 33 the loss year as not filed before claim for such overpayment is filed. 34 The term "loss year" means the taxable year in which such loss arises. 35 (e) No interest until return in processible form. (1) For purposes of 36 subdivisions (a) and (c) of this section, a return shall not be treated 37 as filed until it is filed in processible form. 38 (2) For purposes of paragraph one of this subdivision, a return is in 39 a processible form if: 40 (A) such return is filed on a permitted form, and 41 (B) such return contains: 42 (i) the taxpayer's name, address, and identifying number and the 43 required signatures, and 44 (ii) sufficient required information, whether on the return or on 45 required attachments, to permit the mathematical verification of tax 46 liability shown on the return. 47 (f) Cross-reference. For provision with respect to interest after 48 failure to file notice of federal or New York state change under section 49 11-519 of this chapter, see subdivision (c) of section 11-527 of this 50 chapter. 51 § 11-529 Petition to tax appeals tribunal. (a) General. The form of a 52 petition to the tax appeals tribunal, and further proceedings before the 53 tax appeals tribunal in any case initiated by the filing of a petition, 54 shall be governed by such rules as the tax appeals tribunal shall 55 prescribe. No petition shall be denied in whole or in part without 56 opportunity for a hearing on reasonable prior notice. Such hearing and

S. 8578 418 1 any appeal to the tribunal sitting en banc from the decision rendered in 2 such hearing shall be conducted in the manner and subject to the 3 requirements prescribed by the tax appeals tribunal pursuant to sections 4 one hundred sixty-eight through one hundred seventy-two of the charter 5 of the preceding municipality as it existed January first, nineteen 6 hundred ninety-four. A decision of the tax appeals tribunal shall be 7 rendered, and notice thereof shall be given, in the manner provided by 8 section one hundred seventy-one of the charter of the preceding munici- 9 pality. 10 (b) Petition for redetermination of a deficiency. Within ninety days, 11 or one hundred fifty days if the notice is addressed to a person outside 12 of the United States, after the mailing of the notice of deficiency 13 authorized by section 11-521 of this chapter, or if the commissioner of 14 finance has established a conciliation procedure pursuant to section 15 11-124 of this title and the taxpayer has requested a conciliation 16 conference in accordance therewith, within ninety days from the mailing 17 of the conciliation decision or the date of the commissioner's confirma- 18 tion of the discontinuance of the conciliation proceeding, the taxpayer 19 may file a petition with the tax appeals tribunal for a redetermination 20 of the deficiency. Such petition may also assert a claim for refund for 21 the same taxable year or years, subject to the limitations of subdivi- 22 sion (g) of section 11-527 of this chapter. 23 (c) Petition for refund. A taxpayer may file a petition with the tax 24 appeals tribunal for the amounts asserted in a claim for refund if: 25 (1) the taxpayer has filed a timely claim for refund with the commis- 26 sioner of finance, 27 (2) the taxpayer has not previously filed with the tax appeals tribu- 28 nal a timely petition under subdivision (b) of this section for the same 29 taxable year unless the petition under this subdivision relates to a 30 separate claim for credit or refund properly filed under subdivision (f) 31 of section 11-527 of this chapter, and 32 (3) either: (A) six months have expired since the claim was filed, or 33 (B) the commissioner of finance has mailed to the taxpayer, by regis- 34 tered or certified mail, a notice of disallowance of such claim in whole 35 or in part. No petition under this subdivision shall be filed more than 36 two years after the date of mailing of a notice of disallowance, unless 37 prior to the expiration of such two year period it has been extended by 38 written agreement between the taxpayer and the commissioner of finance. 39 If a taxpayer files a written waiver of the requirement that he or she 40 be mailed a notice of disallowance, the two year period prescribed by 41 this subdivision for filing a petition for refund shall begin on the 42 date such waiver is filed. 43 (4) If the commissioner of finance has established a conciliation 44 procedure pursuant to section 11-124 of this title, a taxpayer who is 45 eligible to file a petition for refund with the tax appeals tribunal 46 pursuant to this subdivision may request a conciliation conference prior 47 to filing such petition, provided the request is made within the time 48 prescribed for filing the petition. Notwithstanding anything in this 49 subdivision to the contrary, if the taxpayer has requested a concil- 50 iation conference in accordance with the procedure established pursuant 51 to section 11-124 of this title, a petition for refund may be filed no 52 later than ninety days from the mailing of the conciliation decision or 53 the date of the commissioner's confirmation of the discontinuance of the 54 conciliation proceeding. 55 (d) Assertion of deficiency after filing petition. (1) Petition for 56 redetermination of deficiency. If a taxpayer files with the tax appeals

S. 8578 419 1 tribunal a petition for redetermination of a deficiency, the tax appeals 2 tribunal shall have power to determine a greater deficiency than 3 asserted in the notice of deficiency and to determine if there should be 4 assessed any addition to tax or penalty provided in section 11-525 of 5 this chapter, if claim therefor is asserted at or before the hearing 6 under the rules of the tax appeals tribunal. 7 (2) Petition for refund. If the taxpayer files with the tax appeals 8 tribunal a petition for credit or refund for a taxable year, the tax 9 appeals tribunal may: 10 (A) determine a deficiency for such year as to any amount of deficien- 11 cy asserted at or before the hearing under rules of the tax appeals 12 tribunal, and within the period in which an assessment would be timely 13 under section 11-523 of this chapter, or 14 (B) deny so much of the amount for which credit or refund is sought in 15 the petition, as is offset by other issues pertaining to the same taxa- 16 ble year which are asserted at or before the hearing under rules of the 17 tax appeals tribunal. 18 (3) Opportunity to respond. A taxpayer shall be given a reasonable 19 opportunity to respond to any matters asserted by the commissioner of 20 finance under this subdivision. 21 (4) Restriction on further notices of deficiency. If the taxpayer 22 files a petition with the tax appeals tribunal under this section, no 23 notice of deficiency under section 11-521 of this chapter may thereafter 24 be issued by the commissioner of finance for the same taxable year, 25 except in case of fraud or with respect to a change or correction in 26 federal or New York state taxable income required to be reported under 27 section 11-519 of this chapter or with respect to a state change or 28 correction of sales and compensating use tax liability to be reported 29 under section 11-519.1 of this chapter. 30 (e) Burden of proof. In any case before the tax appeals tribunal under 31 this chapter, the burden of proof shall be upon the petitioner except 32 for the following issues, as to which the burden of proof shall be upon 33 the commissioner of finance: 34 (1) whether the petitioner has been guilty of fraud with intent to 35 evade tax; 36 (2) whether the petitioner is liable as the transferee of property of 37 a taxpayer, but not to show that the taxpayer was liable for the tax; 38 (3) whether the petitioner is liable for any increase in a deficiency 39 where such increase is asserted initially after a notice of deficiency 40 was mailed and a petition under this section filed, unless such increase 41 in deficiency is the result of a change or correction of federal or New 42 York state taxable income required to be reported under section 11-519 43 of this chapter, and of which change or correction the commissioner of 44 finance had no notice at the time he or she mailed the notice of defi- 45 ciency or unless such increase in deficiency is the result of a change 46 or correction of sales and compensating use tax liability required to be 47 reported under section 11-519.1 of this title, and of which change or 48 correction the commissioner of finance had no notice at the time he or 49 she mailed the notice of deficiency; and 50 (4) whether any person is liable for a penalty under subdivision (k) 51 of section 11-525 of this chapter. 52 (f) Evidence of related federal or state determination. Evidence of a 53 federal or state determination relating to issues raised in a case 54 before the tax appeals tribunal under this section shall be admissible, 55 under rules established by the tax appeals tribunal.

S. 8578 420 1 (g) Jurisdiction over other years. The tax appeals tribunal shall 2 consider such facts with relation to the taxes for other years as may be 3 necessary correctly to determine the tax for the taxable year, but in so 4 doing shall have no jurisdiction to determine whether or not the tax for 5 any other year has been overpaid or underpaid. 6 § 11-530 Review of tax appeals tribunal's decision. (a) General. A 7 decision of the tax appeals tribunal sitting en banc shall be subject to 8 judicial review at the instance of any taxpayer affected thereby in the 9 manner provided by law for the review of a final decision or action of 10 administrative agencies of the city. An application by a taxpayer for 11 such review must be made within four months after notice of the decision 12 is sent by certified mail, return receipt requested, to the taxpayer and 13 the commissioner of finance. 14 (b) Judicial review exclusive remedy. The review of a decision of the 15 tax appeals tribunal provided by this section shall be the exclusive 16 remedy available to any taxpayer for the judicial determination of the 17 liability of the taxpayer for the taxes imposed by this chapter. 18 (c) Assessment pending review; review bond. Irrespective of any 19 restrictions on the assessment and collection of deficiencies, the 20 commissioner of finance may assess a deficiency determined by the tax 21 appeals tribunal in a decision rendered pursuant to section one hundred 22 seventy-one of the charter of the preceding municipality as it existed 23 January first, nineteen hundred ninety-four after the expiration of the 24 period specified in subdivision (a) of this section, notwithstanding 25 that an application for judicial review in respect of such deficiency 26 has been duly made by the taxpayer, unless the taxpayer, at or before 27 the time his or her application for review is made, has paid the defi- 28 ciency, has deposited with the commissioner of finance the amount of the 29 deficiency, or has filed with the commissioner of finance a bond, which 30 may be a jeopardy bond under subdivision (h) of section 11-534 of this 31 chapter, in the amount of the portion of the deficiency, including 32 interest and other amounts, in respect of which the application for 33 review is made and all costs and charges which may accrue against such 34 taxpayer in the prosecution of the proceeding, including costs of all 35 appeals, and with surety approved by a justice of the supreme court of 36 the state of New York, conditioned upon the payment of the deficiency, 37 including interests and other amounts, as finally determined and such 38 costs and charges. If, as a result of a waiver of the restrictions on 39 the assessment and collection of a deficiency, any part of the amount 40 determined by the tax appeals tribunal is paid after the filing of the 41 review bond, such bond shall, at the request of the taxpayer, be propor- 42 tionately reduced. 43 (d) Credit, refund or abatement after review. If the amount of a defi- 44 ciency determined by the tax appeals tribunal is disallowed in whole or 45 in part by the court of review, the amount so disallowed shall be cred- 46 ited, or refunded to the taxpayer, without the making of claim therefor, 47 or, if payment has not been made, shall be abated. 48 (e) Date of finality of tax appeals tribunal's decision. A decision of 49 the tax appeals tribunal shall become final upon the expiration of the 50 period specified in subdivision (a) of this section for making an appli- 51 cation for review, if no such application has been duly made within such 52 time, or if such application has been duly made, upon expiration of the 53 time for all further judicial review, or upon the rendering by the tax 54 appeals tribunal of a decision in accordance with the mandate of the 55 court on review. Notwithstanding the provisions of this subdivision, 56 for the purpose of making an application for review, the decision of the

S. 8578 421 1 tax appeals tribunal shall be deemed final on the date the notice of 2 decision is sent by certified mail to the taxpayer and the commissioner 3 of finance. 4 § 11-531 Mailing rules; holidays; miscellaneous. (a) Timely mailing. 5 (1) If any return, declaration of estimated tax, claim, statement, 6 notice, petition, or other document required to be filed, or any payment 7 required to be made, within a prescribed period or on or before a 8 prescribed date under authority of any provision of this chapter is, 9 after such period or such date, delivered by the United States mail to 10 the commissioner of finance, tax appeals tribunal, bureau, office, offi- 11 cer or person with which or with whom such document is required to be 12 filed, or to which or to whom such payment is required to be made, the 13 date of the United States postmark stamped on the envelope shall be 14 deemed to be the date of delivery. This subdivision shall apply only if 15 the postmark date falls within the prescribed period or on or before the 16 prescribed date for the filing of such document, or for making the 17 payment, including any extension granted for such filing or payment, and 18 only if such document or payment was deposited in the mail, postage 19 prepaid, properly addressed to the commissioner of finance, tax appeals 20 tribunal, bureau, office, officer or person with which or with whom the 21 document is required to be filed or to which or to whom such payment is 22 required to be made. If any document is sent by United States registered 23 mail, such registration shall be prima facie evidence that such document 24 was delivered to the commissioner of finance, tax appeals tribunal, 25 bureau, office, officer or person to which or to whom addressed. To the 26 extent that the commissioner of finance or, where relevant, the tax 27 appeals tribunal shall prescribe by regulation, certified mail may be 28 used in lieu of registered mail under this section. Except as provided 29 in paragraph two of this subdivision, this subdivision shall apply in 30 the case of postmarks not made by the United States postal service only 31 if and to the extent provided by regulations of the commissioner of 32 finance or, where relevant, the tax appeals tribunal. 33 (2) (A) Any reference in paragraph one of this subdivision to the 34 United States mail shall be treated as including a reference to any 35 delivery service designated by the secretary of the treasury of the 36 United States pursuant to section seventy-five hundred two of the inter- 37 nal revenue code and any reference in paragraph one of this subdivision 38 to a United States postmark shall be treated as including a reference to 39 any date recorded or marked in the manner described in section seventy- 40 five hundred two of the internal revenue code by a designated delivery 41 service. If the commissioner of finance finds that any delivery service 42 designated by such secretary is inadequate for the needs of the city, 43 the commissioner may withdraw such designation for purposes of this 44 title. The commissioner may also designate additional delivery services 45 meeting the criteria of section seventy-five hundred two of the internal 46 revenue code for purposes of this title, or may withdraw any such desig- 47 nation if the commissioner of finance finds that a delivery service so 48 designated is inadequate for the needs of the city. Any reference in 49 paragraph one of this subdivision to the United States mail shall be 50 treated as including a reference to any delivery service designated by 51 the commissioner of finance and any reference in paragraph one of this 52 subdivision to a United States postmark shall be treated as including a 53 reference to any date recorded or marked in the manner described in 54 section seventy-five hundred two of the internal revenue code by a 55 delivery service designated by the commissioner of finance. Notwith- 56 standing the provisions of this paragraph, any withdrawal of designation

S. 8578 422 1 or additional designation by the commissioner of finance shall not be 2 effective for purposes of service upon the tax appeals tribunal, unless 3 and until such withdrawal of designation or additional designation is 4 ratified by the president of the tax appeals tribunal. 5 (B) Any equivalent of registered or certified mail designated by the 6 United States secretary of the treasury, or as may be designated by the 7 commissioner of finance pursuant to the same criteria used by such 8 secretary for such designations pursuant to section seventy-five hundred 9 two of the internal revenue code, shall be included within the meaning 10 of registered or certified mail as used in paragraph one of this subdi- 11 vision. If the commissioner of finance finds that any equivalent of 12 registered or certified mail designated by such secretary or the commis- 13 sioner of finance is inadequate for the needs of the city, the commis- 14 sioner of finance may withdraw such designation for purposes of this 15 title. Notwithstanding the provisions of this paragraph, any withdrawal 16 of designation or additional designation by the commissioner of finance 17 shall not be effective for purposes of service upon the tax appeals 18 tribunal, unless and until such withdrawal of designation or additional 19 designation is ratified by the president of the tax appeals tribunal. 20 (b) Last known address. For purposes of this chapter, a taxpayer's 21 last known address shall be given in the last return filed by the 22 taxpayer, unless subsequently to the filing of such return the taxpayer 23 shall have notified the commissioner of finance of a change of address. 24 (c) Last day a Saturday, Sunday or legal holiday. When the last day 25 prescribed under authority of this chapter, including any extension of 26 time, for performing any act falls on Saturday, Sunday, or a legal holi- 27 day in the state of New York, the performance of such act shall be 28 considered timely if it is performed on the next succeeding day which is 29 not a Saturday, Sunday or legal holiday. 30 (d) Certificate: unfiled return. For purposes of this chapter and 31 sections one hundred sixty-eight through one hundred seventy-two of the 32 charter of the preceding municipality, the certificate of the commis- 33 sioner of finance to the effect that a tax has not been paid, that a 34 return or declaration of estimated tax has not been filed, or that 35 information has not been supplied, as required by or under the 36 provisions of this title, shall be prima facie evidence that such tax 37 has not been paid, that such return or declaration has not been filed, 38 or that such information has not been supplied. 39 § 11-532 Collection, levy and liens. (a) Collection procedures. The 40 taxes imposed by this chapter shall be collected by the commissioner of 41 finance, and the commissioner may establish the mode or time for the 42 collection of any amount due it under this chapter if not otherwise 43 specified. The commissioner of finance shall, upon request, give a 44 receipt for any sum collected under this chapter. The commissioner of 45 finance may authorize banks or trust companies which are depositories or 46 financial agents of the city to receive and give a receipt for any tax 47 imposed under this chapter in such manner, at such times, and under such 48 conditions as the commissioner of finance may prescribe; and the commis- 49 sioner of finance shall prescribe the manner, times and conditions under 50 which the receipt of such tax by such banks and trust companies is to be 51 treated as payment of such tax to the commissioner of finance. 52 (b) Notice and demand for tax. The commissioner of finance shall as 53 soon as practicable give notice to each person liable for any amount of 54 tax, addition to tax, penalty or interest, which has been assessed but 55 remains unpaid, stating the amount and demanding payment thereof. Such 56 notice shall be left at the dwelling or usual place of business of such

S. 8578 423 1 person or shall be sent by mail to such person's last known address. 2 Except where the commissioner of finance determines that collection 3 would be jeopardized by delay, if any tax is assessed prior to the last 4 date, including any date fixed by extension, prescribed for payment of 5 such tax, payment of such tax shall not be demanded until after such 6 date. 7 (c) Issuance of warrant after notice and demand. If any person liable 8 under this chapter for the payment of any tax, addition to tax, penalty 9 or interest neglects or refuses to pay the same within the ten days 10 after notice and demand herefor is given to such person under subdivi- 11 sion (b) of this section, the commissioner of finance may within six 12 years after the date of such assessment issue a warrant directed to the 13 sheriff of any county of the state, or to any officer or employee of the 14 department of finance, commanding such person to levy upon and sell such 15 person's real and personal property for the payment of the amount 16 assessed, with the cost of executing the warrant, and to return such 17 warrant to the commissioner of finance and pay to the commissioner the 18 money collected by virtue thereof within sixty days after the receipt of 19 the warrant. If the commissioner of finance finds that the collection 20 of the tax or other amount is in jeopardy, notice and demand for immedi- 21 ate payment of such tax may be made by the commissioner of finance and 22 upon failure or refusal to pay such tax or other amount the commissioner 23 of finance may issue a warrant without regard to the ten-day period 24 provided in this subdivision. 25 (d) Copy of warrant to be filed and lien to be created. Any sheriff 26 or officer or employee who receives a warrant under subdivision (c) of 27 this section shall within five days thereafter file a copy with the 28 clerk of the appropriate county. The clerk shall thereupon enter in the 29 judgment docket, in the column for judgment debtors, the name of the 30 taxpayer mentioned in the warrant, and in appropriate columns the tax or 31 other amounts for which the warrant is issued and the date when such 32 copy is filed; and such amount shall thereupon be a binding lien upon 33 the real, personal and other property of the taxpayer. 34 (e) Judgment. When a warrant has been filed with the county clerk the 35 commissioner of finance shall, on behalf of the city, be deemed to have 36 obtained judgment against the taxpayer for the tax or other amounts. 37 (f) Execution. The sheriff or officer or employee shall thereupon 38 proceed upon the judgment in all respects, with like effect, and in the 39 same manner prescribed by law in respect to executions issued against 40 property upon judgments of a court of record, and a sheriff shall be 41 entitled to the same fees for the sheriff's services in executing the 42 warrant, to be collected in the same manner. An officer or employee of 43 the department of finance may proceed in any county or counties of this 44 state and shall have all the powers of execution conferred by law upon 45 sheriffs, but shall be entitled to no fee or compensation in excess of 46 actual expenses paid in connection with the execution of the warrant. 47 (g) Taxpayer not a resident of this state. Where a notice and demand 48 under subdivision (b) of this section shall have been given to a taxpay- 49 er who is not then a resident of this state, and it appears to the 50 commissioner of finance that it is not practicable to find in this state 51 property of the taxpayer sufficient to pay the entire balance of tax or 52 other amount owing by such taxpayer who is not then a resident of this 53 state, the commissioner of finance may, in accordance with subdivision 54 (c) of this section, issue a warrant directed to an officer or employee 55 of the department of finance, a copy of which warrant shall be mailed by 56 certified or registered mail to the taxpayer at the taxpayer's last

S. 8578 424 1 known address, subject to the rules for mailing provided in subdivision 2 (a) of section 11-521 of this chapter. Such warrant shall command the 3 officer or employee to proceed in Richmond county, and such officer or 4 employee shall, within five days after receipt of the warrant, file the 5 warrant and obtain a judgment in accordance with this section. Thereup- 6 on the commissioner of finance may authorize the institution of any 7 action or proceeding to collect or enforce the judgment in any place and 8 by any procedure that a civil judgment of the supreme court of the state 9 of New York could be collected or enforced. The commissioner of finance 10 may also, in the commissioner's discretion, designate agents or retain 11 counsel for the purpose of collecting, outside the state of New York, 12 any unpaid taxes, additions to tax, penalties or interest which have 13 been assessed under this chapter against taxpayers who are not residents 14 of this state, may fix the compensation of such agents and counsel to be 15 paid out of money appropriated or otherwise lawfully available for 16 payment thereof, and may require of them bonds or other security for the 17 faithful performance of their duties, in such form and in such amount as 18 the commissioner of finance shall deem proper and sufficient. 19 (h) Action by city for recovery of taxes. Action may be brought by 20 the corporation counsel of the city at the instance of the commissioner 21 of finance as agent and trustee for the city to recover the amount of 22 any unpaid taxes, additions to tax, penalties or interest which have 23 been assessed under this chapter within six years prior to the date the 24 action is commenced. 25 (i) Release of lien or vacating warrant. The commissioner of finance, 26 if he or she finds that the interests of the city will not thereby be 27 jeopardized, and upon such conditions as the commissioner may require, 28 may release any property from the lien of any warrant or vacate such 29 warrant for unpaid taxes, additions to tax, penalties and interest filed 30 pursuant to subdivision (d) or (g) of this section, and such release or 31 vacating of the warrant may be recorded in the office of any recording 32 officer in which such warrant has been filed. The clerk shall thereupon 33 cancel and discharge as of the original date of docketing the vacated 34 warrant. 35 § 11-533 Transferees. (a) General. The liability, at law or in equity, 36 of a transferee of property of a taxpayer for any tax, additions to tax, 37 penalty or interest due the commissioner of finance under this chapter, 38 shall be assessed, paid, and collected in the same manner and subject to 39 the same provisions and limitations as in the case of the tax to which 40 the liability relates, except that the period of limitations for assess- 41 ment against the transferee shall be extended by one year for each 42 successive transfer, in order, from the original taxpayer to the trans- 43 feree involved, but not by more than three years in the aggregate. The 44 term "transferee" includes donee, heir, legatee, devisee and distribu- 45 tee. 46 (b) Exceptions. (1) If before the expiration of the period of limi- 47 tations for assessment of liability of the transferee, a claim has been 48 filed by the commissioner of finance in any court against the original 49 taxpayer or the last preceding transferee based upon the liability of 50 the original taxpayer, then the period of limitation for assessment of 51 liability of the transferee shall in no event expire prior to one year 52 after such claim has been finally allowed, disallowed or otherwise 53 disposed of. 54 (2) If, before the expiration of the time prescribed in subdivision 55 (a) of this section or the immediately preceding paragraph of this 56 subdivision for the assessment of the liability, the commissioner of

S. 8578 425 1 finance and the transferee have both consented in writing to its assess- 2 ment after such time, the liability may be assessed at any time prior to 3 the expiration of the period agreed upon. The period so agreed upon may 4 be extended by subsequent agreements in writing made before the expira- 5 tion of the period previously agreed upon. For the purpose of determin- 6 ing the period of limitation on credit or refund to the transferee of 7 overpayments of tax made by such transferee or overpayments of tax made 8 by the transferor as to which the transferee is legally entitled to 9 credit or refund, such agreement and any extension thereof shall be 10 deemed an agreement and extension thereof referred to in subdivision (b) 11 of section 11-527 of this chapter. If the agreement is executed after 12 the expiration of the period of limitation for assessment against the 13 original taxpayer, then in applying the limitations under subdivision 14 (b) of section 11-527 of this chapter on the amount of the credit or 15 refund, the periods specified in subdivision (a) of section 11-527 of 16 this chapter shall be increased by the period from the date of such 17 expiration to the date of agreement. 18 (c) Deceased transferor. If any person is deceased, the period of 19 limitation for assessment against such person shall be the period that 20 would be in effect if such person had lived. 21 (d) Evidence. Notwithstanding the provisions of subdivision (e) of 22 section 11-537 of this chapter the commissioner of finance shall use his 23 or her powers to make available to the transferee evidence necessary to 24 enable the transferee to determine the liability of the original taxpay- 25 er and of any preceding transferees, but without undue hardship to the 26 original taxpayer or preceding transferee. See subdivision (e) of 27 section 11-529 of this chapter for rules as to burden of proof. 28 § 11-534 Jeopardy assessment. (a) Authority for making. If the commis- 29 sioner of finance believes that the assessment or collection of a defi- 30 ciency will be jeopardized by delay, the commissioner shall, notwith- 31 standing the provision of sections 11-521 and 11-536 of this chapter, 32 and immediately assess such deficiency, together with all interest, 33 penalties and additions to tax provided for by law, and notice and 34 demand shall be made by the commissioner of finance for the payment 35 thereof. 36 (b) Notice of deficiency. If the jeopardy assessment is made before 37 any notice in respect to the tax to which the jeopardy assessment 38 relates has been mailed under section 11-521 of this chapter, then the 39 commissioner of finance shall mail a notice under such section within 40 sixty days after the making of the assessment. 41 (c) Amount assessable before decision of tax appeals tribunal. The 42 jeopardy assessment may be made in respect of a deficiency greater or 43 less than that of which notice is mailed to the taxpayer and whether or 44 not the taxpayer has heretofore filed a petition with the tax appeals 45 tribunal. The commissioner of finance may, at any time before the tax 46 appeals tribunal renders its decision, abate such assessment, or any 47 unpaid portion thereof, to the extent that the commissioner believes the 48 assessment to be excessive in amount. The tax appeals tribunal may in 49 its decision redetermine the entire amount of the deficiency and of all 50 amounts assessed at the same time in connection therewith. 51 (d) Amount assessable after decision of tax appeals tribunal. If the 52 jeopardy assessment is made after the decision of the tax appeals tribu- 53 nal is rendered, such assessment may be made only in respect of the 54 deficiency determined by the tax appeals tribunal in its decision. 55 (e) Expiration of right to assess. A jeopardy assessment may not be 56 made after the decision of the tax appeals tribunal has become final or

S. 8578 426 1 after the taxpayer has made an application for review of the decision of 2 the tax appeals tribunal. 3 (f) Collection of unpaid amounts. When a petition has been filed with 4 the tax appeals tribunal and when the amount which should have been 5 assessed has been determined by a decision of the tax appeals tribunal 6 which has become final, then any unpaid portion, the collection of which 7 has been stayed by bond, shall be collected as part of the tax upon 8 notice and demand from the commissioner of finance, and any remaining 9 portion of the assessment shall be abated. If the amount already 10 collected exceeds the amount determined as the amount which should have 11 been assessed, such excess shall be credited or refunded to the taxpayer 12 as provided in section 11-526 of this chapter without the filing of 13 claim therefor. If the amount determined as the amount which should have 14 been assessed is greater than the amount actually assessed, then the 15 difference shall be assessed and shall be collected as part of the tax 16 upon notice and demand from the commissioner of finance. 17 (g) Abatement if jeopardy does not exist. The commissioner of finance 18 may abate the jeopardy assessment if the commissioner finds that jeopar- 19 dy does not exist. Such abatement may not be made after a decision of 20 the tax appeals tribunal in respect of the deficiency has been rendered 21 or, if no petition is filed with the tax appeals tribunal, after the 22 expiration of the period for filing such petition. The period of limita- 23 tion on the making of assessments and levy or a proceeding for 24 collection, in respect of any deficiency, shall be determined as if the 25 jeopardy assessment so abated had not been made, except that the running 26 of such period shall in any event be suspended for the period from the 27 date of such jeopardy assessment until the expiration of the tenth day 28 after the day on which such jeopardy assessment is abated. 29 (h) Bond to stay collection. The collection of the whole or any amount 30 of any jeopardy assessment may be stayed by filing with the commissioner 31 of finance, within such time as may be fixed by regulation, a bond in an 32 amount equal to the amount as to which the stay is desired, conditioned 33 upon the payment of the amount, together with interest thereon, the 34 collection of which is stayed at the time at which, but for the making 35 of the jeopardy assessment, such amount would be due. Upon the filing of 36 the bond the collection of so much of the amount assessed as is covered 37 by the bond shall be stayed. The taxpayer shall have the right to waive 38 such stay at any time in respect of the whole or any part of the amount 39 covered by the bond, and if as a result of such waiver any part of the 40 amount covered by the bond is paid, then the bond shall at the request 41 of the taxpayer, be proportionately reduced. If any portion of the 42 jeopardy assessment is abated, or if a notice or deficiency under 43 section 11-521 of this chapter is mailed to the taxpayer in a lesser 44 amount, the bond shall, at the request of the taxpayer, be proportion- 45 ately reduced. 46 (i) Petition to tax appeals tribunal. If the bond is given before the 47 taxpayer has filed his or her petition under section 11-529 of this 48 chapter, the bond shall contain a further condition that if a petition 49 is not filed within the period provided in such section, then the amount 50 the collection of which is stayed by the bond, will be paid on notice 51 and demand at any time after the expiration of such period, together 52 with interest thereon from the date of the jeopardy notice and demand to 53 the date of notice and demand under this subdivision. The bond shall be 54 conditioned upon the payment of so much of such assessment, collection 55 of which is stayed by the bond, as is not abated by a decision of the 56 tax appeals tribunal which has become final. If the tax appeals tribunal

S. 8578 427 1 determines that the amount assessed is greater than the amount which 2 should have been assessed, then the bond shall, at the request of the 3 taxpayer, be proportionately reduced when the decision of the tax 4 appeals tribunal is rendered. 5 (j) Stay of sale of seized property pending tax appeals tribunal deci- 6 sion. Where a jeopardy assessment is made, the property seized for the 7 collection of the tax shall not be sold: 8 (1) if subdivision (b) of this section is applicable, prior to the 9 issuance of the notice of deficiency and the expiration of the time 10 provided in section 11-529 of this chapter for filing a petition with 11 the tax appeals tribunal, and 12 (2) if a petition is filed with the tax appeals tribunal, whether 13 before or after the making of such jeopardy assessment, prior to the 14 expiration of the period during which the assessment of the deficiency 15 would be prohibited if subdivision (a) of this section were not applica- 16 ble. 17 Such property may be sold if the taxpayer consents to the sale, or if 18 the commissioner of finance determines that the expenses of conservation 19 and maintenance will greatly reduce the net proceeds, or if the property 20 is perishable. 21 (k) Interest. For the purpose of subdivision (a) of section 11-524 of 22 this chapter, the last date prescribed for payment shall be determined 23 without regard to any notice and demand for payment issued under this 24 section prior to the last date otherwise prescribed for such payment. 25 (l) Early termination of taxable year. If the commissioner of finance 26 finds that a taxpayer designs quickly to depart from this state or to 27 remove his or her property therefrom, or to conceal himself or herself 28 or his or her property therein, or to do any other act tending to preju- 29 dice or to render wholly or partly ineffectual proceedings to collect 30 the income tax for the current or the preceding taxable year unless such 31 proceedings be brought without delay, the commissioner of finance shall 32 declare the taxable period for such taxpayer immediately terminated, and 33 shall cause notice of such finding and declaration to be given to the 34 taxpayer, together with a demand for immediate payment of the tax for 35 the taxable period so declared terminated and of the tax for the preced- 36 ing taxable year or so much of such tax as is unpaid, whether or not the 37 time otherwise allowed by law for filing return and paying the tax has 38 expired; and such taxes shall thereupon become immediately due and paya- 39 ble. In any proceeding brought to enforce payment of taxes made due and 40 payable by virtue of the provisions of this subdivision, the finding of 41 the commissioner of finance, whether made after notice to the taxpayer 42 or not, shall be for all purposes presumptive evidence of jeopardy. 43 (m) Reopening of taxable period. Notwithstanding the termination of 44 the taxable period of the taxpayer by the commissioner of finance as 45 provided in subdivision (l) of this section, the commissioner of finance 46 may reopen such taxable period each time the taxpayer is found by the 47 commissioner of finance to have received income, within the current 48 taxable year, since the termination of such period. A taxable period so 49 terminated by the commissioner of finance may be reopened by the taxpay- 50 er if the taxpayer files with the commissioner of finance a true and 51 accurate return of taxable income and credits allowed under this chapter 52 for taxable period, together with such other information as the commis- 53 sioner of finance may by regulations prescribe. 54 (n) Furnishing of bond where taxable year is closed by the commission- 55 er of finance. Payment of taxes shall not be enforced by any proceedings 56 under the provisions of subdivision (l) of this section prior to the

S. 8578 428 1 expiration of the time otherwise allowed for paying such taxes if the 2 taxpayer furnishes, under regulations prescribed by the commissioner of 3 finance, a bond to insure the timely making of returns with respect to, 4 and payment of, such taxes or any taxes under this chapter for prior 5 years. 6 § 11-535 Criminal penalties; cross-reference. For criminal penalties, 7 see chapter forty of this title. 8 § 11-536 Armed forces relief provisions. (a) Time to be disregarded. 9 In the case of an individual serving in the armed forces of the United 10 States or serving in support of such armed forces, in an area designated 11 by the president of the United States by executive order as a "combat 12 zone" at any time during the period designated by the president by exec- 13 utive order as the period of combatant activities in such zone, or 14 hospitalized outside the state as a result of injury received while 15 serving in such an area during such time, the period of service in such 16 area, plus the period of continuous hospitalization outside the state 17 attributable to such injury, and the next one hundred eighty days there- 18 after, shall be disregarded in determining, under this chapter, in 19 respect of the tax liability, including any interest, penalty, or addi- 20 tion to the tax, of such individual: 21 (1) Whether any of the following acts was performed within the time 22 prescribed therefor: 23 (A) filing any return of tax; 24 (B) payment of any tax or any installment thereof or of any other 25 liability to the commissioner of finance, in respect thereof; 26 (C) filing a petition with the tax appeals tribunal for credit or 27 refund or for redetermination of a deficiency, or application for review 28 of a decision rendered by the tax appeals tribunal; 29 (D) allowance of a credit or refund of tax; 30 (E) filing a claim for credit or refund of tax; 31 (F) assessment of tax; 32 (G) giving or making any notice or demand for the payment of any tax, 33 or with respect to any liability to the commissioner of finance in 34 respect of tax; 35 (H) collection, by the commissioner of finance, by levy or otherwise 36 of the amount of any liability in respect of tax; 37 (I) bringing suit by the city, or any officer, on its behalf, in 38 respect of any liability in respect of tax; and 39 (J) any other act required or permitted under this chapter or speci- 40 fied in regulations prescribed under this section by the commissioner of 41 finance. 42 (2) The amount of any credit or refund (including interest). 43 (b) Action taken before ascertainment of right to benefits. The 44 assessment or collection of the tax imposed by this chapter or of any 45 liability to the commissioner of finance in respect of such tax, or any 46 action or proceeding by or on behalf of the commissioner of finance in 47 connection therewith, may be made, taken, begun, or prosecuted in 48 accordance with law, without regard to the provisions of subdivision (a) 49 of this section, unless prior to such assessment, collection, action, or 50 proceeding it is ascertained that the person concerned is entitled to 51 the benefit of subdivision (a) of this section. 52 (c) Members of armed forces dying in action. In the case of any person 53 who dies during an induction period while in active service as a member 54 of the armed forces of the United States, if such death occurred while 55 serving in a combat zone during a period of combatant activities in such 56 zone, as described in subdivision (a) of this section, or as a result of

S. 8578 429 1 wounds, disease or injury incurred while so serving, the tax imposed by 2 this chapter shall not apply with respect to the taxable year in which 3 falls the date of such person's death, or with respect to any prior 4 taxable year ending on or after the first day he or she so served in a 5 combat zone, and no returns shall be required in behalf of such person 6 or such person's estate for such year; and the tax for any such taxable 7 year which is unpaid at the date of his or her death, including inter- 8 est, additions to tax and penalties, if any, shall not be assessed and 9 if assessed, the assessment shall be abated and, if collected, shall be 10 refunded to the legal representative of such person's estate if one has 11 been appointed and has qualified, or, if no legal representative has 12 been appointed or has qualified, to such person's surviving spouse. 13 § 11-537 General powers of commissioner of finance. (a) General. The 14 commissioner of finance shall administer and enforce the tax imposed by 15 this chapter and the commissioner is authorized to make such rules and 16 regulations, and to require such facts and information to be reported, 17 as the commissioner may deem necessary to enforce the provision of this 18 chapter; and the commissioner may delegate his or her powers and func- 19 tions under all parts of this chapter to one of the commissioner's depu- 20 ties or to any employee or employees of the commissioner's department. 21 (b) Examination of books and witnesses. The commissioner of finance 22 for the purpose of ascertaining the correctness of any return, or for 23 the purpose of making an estimate of tax of any person, shall have power 24 to examine or to cause to have examined, by any agent or representative 25 designated by the commissioner for that purpose, any books, papers, 26 records or memoranda bearing upon the matters required to be included in 27 the return, and may require the attendance of the person rendering the 28 return or any officer or employee of such person, or the attendance of 29 any other person having knowledge in the premises, and may take testimo- 30 ny and require proof material for the commissioner's information, with 31 power to administer oaths to such person or persons. 32 (c) Abatement authority. The commissioner of finance, of his or her 33 own motion, may abate any small unpaid balance of an assessment of tax 34 under this part, or any liability in respect thereof, if the commis- 35 sioner of finance determines under uniform rules prescribed by the 36 commissioner that the administration and collection costs involved would 37 not warrant collection of the amount due. The commissioner may also 38 abate, of his or her own motion, the unpaid portion of the assessment of 39 any tax or any liability in respect thereof, which is excessive in 40 amount, or is assessed after the expiration of the period of limitation 41 properly applicable thereto, or is erroneously or illegally assessed. 42 No claim for abatement under this subdivision shall be filed by a 43 taxpayer. 44 (d) Special refund authority. Where no questions of fact or law are 45 involved and it appears from the records of the commissioner of finance 46 that any moneys have been erroneously or illegally collected from any 47 taxpayer or other person, or paid by such taxpayer or other person under 48 a mistake of facts, pursuant to the provisions of this chapter, the 49 commissioner of finance at any time, without regard to any period of 50 limitations, shall have the power, upon making a record of his or her 51 reasons therefor in writing, to cause such moneys so paid and being 52 erroneously and illegally held to be refunded. 53 (e) Cooperation with the United States, this state and other states. 54 Notwithstanding the provisions of section 11-538 of this chapter, the 55 commissioner of finance may permit the secretary of the treasury of the 56 United States or the secretary's delegates, or the proper officer of

S. 8578 430 1 this or any other state imposing an income tax upon the incomes of indi- 2 viduals, or the authorized representative of any such officer, to 3 inspect any return filed under this chapter or may furnish to such offi- 4 cer or his or her authorized representative an abstract of any such 5 return or supply such officer with information concerning an item 6 contained in any such return, or disclosed by any investigation of tax 7 liability under this chapter, but such permission shall be granted or 8 such information furnished to such officer or such officer's represen- 9 tative only if the laws of the United States or of such state, as the 10 case may be, grant substantially similar privileges to the commissioner 11 of finance and such information is to be used for tax purposes only; and 12 provided further the commissioner of finance may furnish to the secre- 13 tary of the treasury of the United States or the secretary's delegates 14 or to the tax commission of the state of New York or its delegates such 15 returns filed under this chapter and other tax information, as he or she 16 may consider proper for use in court actions or proceedings under the 17 internal revenue code or the tax law of the state of New York, whether 18 civil or criminal, where a written request therefor has been made to the 19 commissioner of finance by the secretary of the treasury or by such tax 20 commission or by their delegates, provided the laws of the United States 21 or the laws of the state of New York grant substantially similar powers 22 to the secretary of the treasury of the United States or the secretary's 23 delegates or to such tax commission or its delegates. Where the commis- 24 sioner of finance has so authorized use of returns or other information 25 in such actions or proceedings, officers and employees of the department 26 of finance may testify in such actions or proceedings in respect to such 27 returns or other information. 28 (f) (1) Authority to set interest rates. The commissioner of finance 29 shall set the overpayment and underpayment rates of interest to be paid 30 pursuant to sections 11-524, 11-525 and 11-528 of this chapter, but if 31 no such rate or rates of interest are set, such overpayment rate shall 32 be deemed to be set at six percent per annum and such underpayment rate 33 shall be deemed to be set at seven and one-half percent per annum. Such 34 overpayment and underpayment rates shall be the rates prescribed in 35 paragraph two of this subdivision, but the underpayment rate shall not 36 be less than seven and one-half percent per annum. Any such rates set by 37 the commissioner of finance shall apply to taxes, or any portion there- 38 of, which remain or become due or overpaid on or after the date on which 39 such rates become effective and shall apply only with respect to inter- 40 est computed or computable for periods or portions of periods occurring 41 in the period during which such rates are in effect. 42 (2) General rule. (A) Overpayment rate. The overpayment rate set under 43 this subdivision shall be the sum of (i) the federal short-term rate as 44 provided under paragraph three of this subdivision, plus (ii) two 45 percentage points. 46 (B) Underpayment rate. The underpayment rate set under this subdivi- 47 sion shall be the sum of (i) the federal short-term rate as provided 48 under paragraph three of this subdivision, plus (ii) seven percentage 49 points. 50 (3) Federal short-term rate. For purposes of this subdivision: 51 (A) The federal short-term rate for any month shall be the federal 52 short-term rate determined by the United States secretary of the treas- 53 ury during such month in accordance with subsection (d) of section 54 twelve hundred seventy-four of the internal revenue code for use in 55 connection with section six thousand six hundred twenty-one of the 56 internal revenue code. Any such rate shall be rounded to the nearest

S. 8578 431 1 full percent, or, if a multiple of one-half of one percent, such rate 2 shall be increased to the next highest full percent. 3 (B) Period during which rate applies. 4 (i) In general. Except as provided in clause (ii) of this subpara- 5 graph, the federal short-term rate for the first month in each calendar 6 quarter shall apply during the first calendar quarter beginning after 7 such month. 8 (ii) Special rule for the month of September, nineteen hundred eight- 9 y-nine. The federal short-term rate for the month of April, nineteen 10 hundred eighty-nine shall apply with respect to setting the overpayment 11 and underpayment rates for the month of September, nineteen hundred 12 eighty-nine. 13 (4) Publication of interest rates. The commissioner of finance shall 14 cause to be published in the City Record, and give other appropriate 15 general notice of, the interest rates to be set under this subdivision 16 no later than twenty days preceding the first day of the calendar quar- 17 ter during which such interest rates apply. The setting and publication 18 of such interest rates shall not be included within paragraph (a) of 19 subdivision five of section one thousand forty-one of the city charter 20 of the preceding municipality as it existed January first, nineteen 21 hundred ninety-four relating to the definition of a rule. 22 (5) Cross-reference. For provisions relating to the power of the 23 commissioner of finance to abate small amounts of interest, see subdivi- 24 sion (c) of this section. 25 (g) In computing the amount of any interest required to be paid under 26 this chapter by the commissioner of finance or by the taxpayer, or any 27 other amount determined by reference to such amount of interest, such 28 interest and such amount shall be compounded daily. The provisions of 29 this subdivision shall not apply for purposes of computing the amount of 30 any addition to tax for failure to pay estimated tax under subdivision 31 (c) of section 11-525 of this chapter. 32 § 11-538 Secrecy requirement and the penalties for violation. 1. 33 Except in accordance with proper judicial order or as otherwise provided 34 by law, it shall be unlawful for the commissioner of finance, the 35 department of finance of the city, any officer or employee of the 36 department of finance of the city, any person engaged or retained by 37 such department on an independent contract basis, any depository to 38 which any return may be delivered as provided in subdivision four of 39 this section, any officer or employee of such depository, the tax 40 appeals tribunal, any commissioner or employee of such tribunal, or any 41 person who, pursuant to this section, is permitted to inspect any report 42 or return or to whom a copy, an abstract or a portion of any report or 43 return is furnished, or to whom any information contained in any report 44 or return is furnished, to divulge or make known in any manner the 45 amount of income or any particulars set forth or disclosed in any report 46 or return required under this chapter. The officers charged with the 47 custody of such reports and returns shall not be required to produce any 48 of them or evidence of anything contained in them in any action or 49 proceeding in any court, except on behalf of the city in an action or 50 proceeding under the provisions of this chapter or in any other action 51 or proceeding involving the collection of a tax due under this chapter 52 to which the city is a party or a claimant, or on behalf of any party to 53 any action or proceeding under the provisions of this chapter when the 54 reports, returns or facts shown thereby are directly involved in such 55 action or proceeding, in any of which events the court may require the 56 production of, and may admit in evidence, so much of said reports,

S. 8578 432 1 returns or of the facts shown thereby, as are pertinent to the action or 2 proceeding and no more. Nothing herein shall be construed to prohibit 3 the delivery to a taxpayer or to the taxpayer's duly authorized repre- 4 sentative of a certified copy of any return or report filed in 5 connection with his or her tax or to prohibit the publication of statis- 6 tics so classified as to prevent the identification of particular 7 reports or returns and the items thereof, or the inspection by the 8 corporation counsel or other legal representatives of the city of the 9 report or return of any taxpayer who shall bring action to set aside or 10 review the tax based thereon, or against whom an action or proceeding 11 under this chapter has been recommended by the commissioner of finance 12 or the corporation counsel or has been instituted, or the inspection of 13 the reports or returns required under this chapter by the duly desig- 14 nated officers or employees of the city for purposes of an audit under 15 this chapter or an audit authorized by the enacting of this chapter. 16 Reports and returns shall be preserved for three years and thereafter 17 until the commissioner of finance orders them to be destroyed. 18 2. Any officer or employee of the city or the state who willfully 19 violates the provisions of subdivision one of this section shall be 20 dismissed from office and be incapable of holding any public office in 21 the city or the state for a period of five years thereafter. 22 3. Cross-reference: For criminal penalties, see chapter forty of this 23 title. 24 4. Notwithstanding the provisions of subdivision one of this section, 25 the commissioner of finance, in his or her discretion, may require or 26 permit any or all persons liable for any tax imposed by this chapter, to 27 make payments on account of estimated tax and payment of any tax, penal- 28 ty or interest imposed by this chapter to banks, banking houses or trust 29 companies designated by the commissioner of finance and to file declara- 30 tions of estimated tax and reports and returns with such banks, banking 31 houses or trust companies as agents of the commissioner of finance, in 32 lieu of making any such payment directly to the commissioner of finance. 33 However, the commissioner of finance shall designate only such banks, 34 banking houses or trust companies as are depositories or financial 35 agents of the city. 36 5. This section shall be deemed a state statute for purposes of para- 37 graph (a) of subdivision two of section eighty-seven of the public offi- 38 cers law. 39 6. Notwithstanding anything in subdivision one of this section to the 40 contrary, if a taxpayer has petitioned the tax appeals tribunal for 41 administrative review as provided in section one hundred seventy of the 42 charter of the preceding municipality as it existed January first, nine- 43 teen hundred ninety-four, the commissioner of finance shall be author- 44 ized to present to the tribunal any report or return of such taxpayer, 45 or any information contained therein or relating thereto, which may be 46 material or relevant to the proceeding before the tribunal. The tax 47 appeals tribunal shall be authorized to publish a copy or a summary of 48 any decision rendered pursuant to section one hundred seventy-one of the 49 charter of the preceding municipality as it existed January first, nine- 50 teen hundred ninety-four. 51 7. Notwithstanding anything in subdivision one of this section, the 52 commissioner of finance may disclose to a taxpayer or a taxpayer's 53 related member, as defined in subdivision (e) of section 11-506 of this 54 chapter, information relating to any royalty paid, incurred or received 55 by such taxpayer or related member to or from the other, including the 56 treatment of such payments by the taxpayer or the related member in any

S. 8578 433 1 report or return transmitted to the commissioner of finance under this 2 title. 3 § 11-539 Inconsistencies with other laws. If any provision of this 4 chapter is inconsistent with, in conflict with, or contrary to any other 5 provision of law, such provision of this chapter shall prevail over such 6 other provision and such other provision shall be deemed to have been 7 amended, superseded or repealed to the extent of such inconsistency, 8 conflict or contrariety. 9 § 11-540 Disposition of revenues. All revenues resulting from the 10 imposition of the taxes under this chapter shall be paid into the treas- 11 ury of the city and shall be credited to and deposited in the general 12 fund of the city, but no part of such revenues may be expended unless 13 appropriated in the annual budget of the city. 14 CHAPTER 6 15 CITY BUSINESS 16 TAXES 17 SUBCHAPTER 1 18 GENERAL PROVISIONS 19 § 11-601 Definitions. When used in subchapters one through five: 20 1. "Taxpayer" means any corporation, association or other entity or 21 individual subject to tax under this chapter; 22 2. "State", "the state" or "this state" means the state of New York; 23 3. "Tax law", "insurance law", "private housing finance law", "envi- 24 ronmental conservation law", "public housing law", "state finance law", 25 "general municipal law", "public service law", "workers' compensation 26 law", "business corporation law", "civil practice law and rules", "crim- 27 inal procedure law", and "banking law" refer to laws of the state; 28 4. "Superintendent of insurance", and "commissioner of health" refer 29 to officials of the state; 30 5. "Commissioner of finance" means the commissioner of finance of the 31 city; 32 6. "Department of finance" means the department of finance of the 33 city; 34 7. "Domestic corporation" means a corporation organized under the laws 35 of the state; and 36 8. "Tax appeals tribunal" means the tax appeals tribunal established 37 by section one hundred sixty-eight of the charter of the preceding muni- 38 cipality as it existed January first, nineteen hundred ninety-four. 39 9. "REIT" means a real estate investment trust as defined in section 40 eight hundred fifty-six of the internal revenue code. 41 10. "RIC" means a regulated investment company as defined in section 42 eight hundred fifty-one of the internal revenue code. 43 11. "Captive REIT" means a REIT (a) that is not regularly traded on an 44 established securities market, and (b) more than fifty percent of the 45 voting stock of which is owned or controlled, directly or indirectly, by 46 a single corporation that is not exempt from federal income tax and is 47 not a REIT. Any voting stock in a REIT that is held in a segregated 48 asset account of a life insurance corporation, as described in section 49 eight hundred seventeen of the internal revenue code, shall not be taken 50 into account for purposes of determining whether a REIT is a captive 51 REIT. 52 12. "Captive RIC" means a RIC (a) that is not regularly traded on an 53 established securities market, and (b) more than fifty percent of the 54 voting stock of which is owned or controlled, directly or indirectly, by

S. 8578 434 1 a single corporation that is not exempt from federal income tax and is 2 not a RIC. Any voting stock in a RIC that is held in a segregated asset 3 account of a life insurance corporation, as described in section eight 4 hundred seventeen of the internal revenue code, shall not be taken into 5 account for purposes of determining whether a RIC is a captive RIC. 6 13. Unless a different meaning is clearly required, any term used in 7 this chapter shall have the same meaning as when used in a comparable 8 context in the laws of the United States relating to federal income 9 taxes, and any reference to the laws of the United States shall mean the 10 provisions of the internal revenue code of nineteen hundred fifty-four, 11 and amendments thereto, and other provisions of the laws of the United 12 States relating to federal income taxes, as the same are included in the 13 appendix to this chapter. The quotation of the aforesaid laws of the 14 United States is intended to make them a part of any appropriate chapter 15 and to avoid constitutional uncertainties which might result if such 16 laws were merely incorporated by reference. The quotation of a 17 provision of the federal internal revenue code or of any other law of 18 the United States shall not necessarily mean that it is applicable to or 19 has relevance to any of the chapters. 20 SUBCHAPTER 2 21 GENERAL CORPORATION TAX 22 § 11-602 Definitions. When used in this subchapter: 23 1. (a) "Corporation" includes (1) an association within the meaning of 24 paragraph three of subsection (a) of section seventy-seven hundred one 25 of the internal revenue code, including a limited liability company, (2) 26 a joint-stock company or association, (3) a publicly traded partnership 27 treated as a corporation for purposes of the internal revenue code 28 pursuant to section seventy-seven hundred four thereof and (4) any busi- 29 ness conducted by a trustee or trustees wherein interest or ownership is 30 evidenced by certificate or other written instrument; 31 (b) (1) Notwithstanding paragraph (a) of this subdivision, an unincor- 32 porated organization that (i) is described in subparagraph one or three 33 of such paragraph (a) and (ii) was subject to the provisions of chapter 34 five of this title for its taxable year beginning in nineteen hundred 35 ninety-five, may make a one-time election not to be treated as a corpo- 36 ration and, instead, to continue to be subject to the provisions of 37 chapter five of this title for its taxable years beginning in nineteen 38 hundred ninety-six and thereafter. Such election shall be made on the 39 return prescribed pursuant to such chapter five for such electing organ- 40 ization's taxable year beginning in nineteen hundred ninety-six, which 41 shall be filed on or before the due date, determined with regard to 42 extensions, for filing such return. 43 (2) An election under this paragraph shall continue to be in effect 44 until revoked by the unincorporated organization. An election under this 45 paragraph shall be revoked by the filing of a return under this subchap- 46 ter for the first taxable year with respect to which such revocation is 47 to be effective, which return shall be filed on or before the due date, 48 determined with regard to extensions, for filing such return. In no 49 event shall such election or revocation be for a part of a taxable year. 50 (c) Notwithstanding paragraph (a) of this subdivision, a corporation 51 shall not include an entity classified as a partnership for federal 52 income tax purposes.

S. 8578 435 1 2. "Subsidiary" means a corporation of which over fifty per centum of 2 the number of shares of stock entitling the holders thereof to vote for 3 the election of directors or trustees is owned by the taxpayer; 4 3. "Subsidiary capital" means investments in the stock of subsidiaries 5 and any indebtedness from subsidiaries, exclusive of accounts receivable 6 acquired in the ordinary course of trade or business for services 7 rendered or for sales of property held primarily for sale to customers, 8 whether or not evidenced by written instrument, on which interest is not 9 claimed and deducted by the subsidiary for purposes of taxation under 10 this subchapter or subchapter three of this chapter, provided, however, 11 that, in the discretion of the commissioner of finance, there shall be 12 deducted from subsidiary capital any liabilities which are directly or 13 indirectly attributable to subsidiary capital; 14 4. "Investment capital" means investments in stocks, bonds and other 15 securities, corporate and governmental, not held for sale to customers 16 in the regular course of business, exclusive of subsidiary capital and 17 stock issued by the taxpayer, provided, however, that, in the discretion 18 of the commissioner of finance, there shall be deducted from investment 19 capital any liabilities which are directly or indirectly attributable to 20 investment capital; and provided, further, that investment capital shall 21 not include any such investments the income from which is excluded from 22 entire net income pursuant to the provisions of paragraph (c-1) of 23 subdivision eight of this section, and that investment capital shall be 24 computed without regard to any liabilities directly or indirectly 25 attributable to such investments, but only if air carriers organized in 26 the United States and operating in the foreign country or countries in 27 which the taxpayer has its major base of operations and in which it is 28 organized, resident or headquartered, if not in the same country as its 29 major base of operations, are not subject to any tax based on or meas- 30 ured by capital imposed by such foreign country or countries or any 31 political subdivision thereof, or if taxed are provided an exemption, 32 equivalent to that provided for herein, from any tax based on or meas- 33 ured by capital imposed by such foreign country or countries and from 34 any such tax imposed by any political subdivision thereof; 35 5. "Investment income" means income, including capital gains in excess 36 of capital losses, from investment capital to the extent included in 37 computing entire net income, less, (a) in the discretion of the commis- 38 sioner of finance, any deductions allowable in computing entire net 39 income which are directly or indirectly attributable to investment capi- 40 tal or investment income, and (b) such portion of any net operating loss 41 deduction allowable in computing entire net income, as the investment 42 income, before such deduction, bears to entire net income, before such 43 deduction, provided, however, that in no case shall investment income 44 exceed entire net income; 45 6. (a) "Business capital" means all assets, other than subsidiary 46 capital, investment capital and stock issued by the taxpayer, less 47 liabilities not deducted from subsidiary or investment capital except 48 that cash on hand and on deposit shall be treated as investment capital 49 or as business capital as the taxpayer may elect; 50 (b) Provided, however, "business capital" shall not include assets to 51 the extent employed for the purpose of generating income which is 52 excluded from entire net income pursuant to the provisions of paragraph 53 (c-1) of subdivision eight of this section and shall be computed without 54 regard to liabilities directly or indirectly attributable to such 55 assets, but only if air carriers organized in the United States and 56 operating in the foreign country or countries in which the taxpayer has

S. 8578 436 1 its major base of operations and in which it is organized, resident or 2 headquartered, if not in the same country as its major base of oper- 3 ations, are not subject to any tax based on or measured by capital 4 imposed by such foreign country or countries or any political subdivi- 5 sion thereof, or if taxed, are provided an exemption, equivalent to that 6 provided for herein, from any tax based on or measured by capital 7 imposed by such foreign country or countries and from any such tax 8 imposed by any political subdivision thereof. 9 7. "Business income" means entire net income minus investment income; 10 8. "Entire net income" means total net income from all sources, which 11 shall be presumably the same as the entire taxable income, but not 12 alternative minimum taxable income, 13 (i) which the taxpayer is required to report to the United States 14 treasury department, or 15 (ii) which the taxpayer would have been required to report to the 16 United States treasury department if it had not made an election under 17 subchapter s of chapter one of the internal revenue code, or 18 (iii) which the taxpayer, in the case of a corporation which is exempt 19 from federal income tax, other than the tax on unrelated business taxa- 20 ble income imposed under section five hundred eleven of the internal 21 revenue code, but which is subject to tax under this subchapter, would 22 have been required to report to the United States treasury department 23 but for such exemption, or 24 (iv) which the taxpayer would have been required to report to the 25 United States treasury department if no election had been made to treat 26 the taxpayer as a qualified subchapter s subsidiary under paragraph 27 three of subsection (b) of section thirteen hundred sixty-one of the 28 internal revenue code, except as provided in this paragraph, and subject 29 to any modification required by paragraphs (d) and (e) of subdivision 30 three of section 11-604 of this subchapter. 31 (a) Entire net income shall not include: 32 (1) income, gains and losses from subsidiary capital which do not 33 include the amount of a recovery in respect of any war loss; 34 (2) fifty percent of dividends other than from subsidiaries, except 35 that entire net income shall include one hundred percent of dividends on 36 shares of stock with respect to which a dividend deduction is disallowed 37 by subsection (c) of section two hundred forty-six of the internal 38 revenue code; 39 (2-a) any amounts treated as dividends pursuant to section seventy- 40 eight of the internal revenue code and not otherwise deductible under 41 subparagraphs one and two of this paragraph; 42 (3) bona fide gifts; 43 (4) income and deductions with respect to amounts received from school 44 districts and from corporations and associations, organized and operated 45 exclusively for religious, charitable or educational purposes, no part 46 of the net earnings of which inures to the benefit of any private share- 47 holder or individual, for the operation of school buses; 48 (5) any refund or credit of a tax imposed under this chapter, or 49 imposed by article nine or nine-A or thirty-two of the tax law as such 50 article was in effect on December thirty-first, two thousand fourteen, 51 for which tax no exclusion or deduction was allowed in determining the 52 taxpayer's entire net income under this subchapter or subchapter three 53 of this chapter for any prior year; 54 (6) in the case of a taxpayer who is separately or as a partner of a 55 partnership doing an insurance business as a member of the New York 56 insurance exchange described in section six thousand two hundred one of

S. 8578 437 1 the insurance law, any item of income, gain, loss or deduction of such 2 business which is the taxpayer's distributive or pro rata share for 3 federal income tax purposes or which the taxpayer is required to take 4 into account separately for federal income tax purposes; 5 (7) that portion of wages and salaries paid or incurred for the taxa- 6 ble year for which a deduction is not allowed pursuant to the provisions 7 of section two hundred eighty C of the internal revenue code; 8 (8) for taxable years beginning after December thirty-first, nineteen 9 hundred eighty-one, except with respect to property which is a qualified 10 mass commuting vehicle described in subparagraph (D) of paragraph eight 11 of subsection (f) of section one hundred sixty-eight of the internal 12 revenue code, relating to qualified mass commuting vehicles, and proper- 13 ty of a taxpayer principally engaged in the conduct of an aviation, 14 steamboat, ferry or navigation business, or two or more of such busi- 15 nesses, which is placed in service before taxable years beginning in 16 nineteen hundred eighty-nine, any amount which is included in the 17 taxpayer's federal taxable income solely as a result of an election made 18 pursuant to the provisions of such paragraph eight as it was in effect 19 for agreements entered into prior to January first, nineteen hundred 20 eighty-four; 21 (9) for taxable years beginning after December thirty-first, nineteen 22 hundred eighty-one, except with respect to property which is a qualified 23 mass commuting vehicle described in subparagraph (D) of paragraph eight 24 of subsection (f) of section one hundred sixty-eight of the internal 25 revenue code, relating to qualified mass commuting vehicles, and proper- 26 ty of a taxpayer principally engaged in the conduct of an aviation, 27 steamboat, ferry or navigation business, or two or more of such busi- 28 nesses, which is placed in service before taxable years beginning in 29 nineteen hundred eighty-nine, any amount which the taxpayer could have 30 excluded from federal taxable income had it not made the election 31 provided for in such paragraph eight as it was in effect for agreements 32 entered into prior to January first, nineteen hundred eighty-four; 33 (10) the amount deductible pursuant to paragraph (j) of this subdivi- 34 sion; 35 (11) upon the disposition of property to which paragraph (j) of this 36 subdivision applies, the amount, if any, by which the aggregate of the 37 amounts described in subparagraph eleven of paragraph (b) of this subdi- 38 vision attributable to such property exceeds the aggregate of the 39 amounts described in paragraph (j) of this subdivision attributable to 40 such property; 41 (12) for taxable years ending after September tenth, two thousand one, 42 the amount deductible pursuant to paragraph (k) of this subdivision; 43 (13) the amount deductible pursuant to paragraph (o) of this subdivi- 44 sion; 45 (14) any amount excepted, for purposes of subsection (a) of section 46 one hundred eighteen of the internal revenue code, from the term 47 "contribution to the capital of the taxpayer" by paragraph two of 48 subsection (b) of section one hundred eighteen of the internal revenue 49 code; 50 (15) the amount of any gain added back to determine entire net income 51 in a previous taxable year pursuant to subparagraph nineteen of para- 52 graph (b) of this subdivision that is included in federal gross income 53 for the taxable year; and 54 (16) the amount of any grant received through either the COVID-19 55 pandemic small business recovery grant program, pursuant to section 56 sixteen-ff of the New York state urban development corporation act, or

S. 8578 438 1 the small business resilience grant program administered by the depart- 2 ment of small business services, to the extent the amount of either such 3 grant is included in federal taxable income. 4 (a-1) Notwithstanding any other provision of this subchapter, for 5 taxable years beginning on or after August first, two thousand two, in 6 the case of a taxpayer that is a partner in a partnership subject to the 7 tax imposed by chapter eleven of this title as a utility, as defined in 8 subdivision six of section 11-1101 of such chapter, entire net income 9 shall not include the taxpayer's distributive or pro rata share for 10 federal income tax purposes of any item of income, gain, loss or 11 deduction of such partnership, or any item of income, gain, loss or 12 deduction of such partnership that the taxpayer is required to take into 13 account separately for federal income tax purposes. 14 (b) Entire net income shall be determined without the exclusion, 15 deduction or credit of: 16 (1) the amount of any specific exemption or credit allowed in any law 17 of the United States imposing any tax on or measured by the income of 18 any corporation, 19 (2) any part of any income from dividends or interest on any kind of 20 stock, securities, or indebtedness, except as provided in clauses one 21 and two of paragraph (a) of this subdivision, 22 (3) taxes on or measured by profits or income paid or accrued to the 23 United States, any of its possessions or to any foreign country, includ- 24 ing taxes in lieu of any of the foregoing taxes otherwise generally 25 imposed by any foreign country or by any possession of the United 26 States, or taxes on or measured by profited or income paid or accrued to 27 the state or any subdivision thereof, including taxes paid or accrued 28 under article nine, nine-A, thirteen-A, twenty-four-A, or twenty-four-B 29 of the tax law or under article thirty-two of the tax law as such arti- 30 cle was in effect on December thirty-first, two thousand fourteen, 31 (3-a) taxes on or measured by profits or income, or which include 32 profits or income as a measure, paid or accrued to any other state of 33 the United States, or any political subdivision thereof, or to the 34 District of Columbia, including taxes expressly in lieu of any of the 35 foregoing taxes otherwise generally imposed by any other state of the 36 United States, or any political subdivision thereof, or the District of 37 Columbia; 38 (4) taxes imposed under this chapter, 39 (4-a) (A) the entire amount allowable as an exclusion or deduction for 40 stock transfer taxes imposed by article twelve of the tax law in deter- 41 mining the entire taxable income which the taxpayer is required to 42 report to the United States treasury department but only to the extent 43 that such taxes are incurred and paid in market making transactions, and 44 (B) the amount allowed as an exclusion or deduction for sales and use 45 taxes imposed by section eleven hundred seven of the tax law in deter- 46 mining the entire taxable income which the taxpayer is required to 47 report to the United States treasury department but only such portion of 48 such exclusion or deduction which is not in excess of the amount of the 49 credit allowed pursuant to subdivision twelve of section 11-604 of this 50 subchapter, 51 (4-b) the amount allowed as an exclusion or a deduction imposed by the 52 tax law in determining the entire taxable income which the taxpayer is 53 required to report to the United States treasury department but only 54 such portion of such exclusion or deduction which is not in excess of 55 the amount of the credit allowed pursuant to subdivision thirteen of 56 section 11-604 of this subchapter,

S. 8578 439 1 (4-c) the amount allowed as an exclusion or a deduction imposed by the 2 tax law in determining the entire taxable income which the taxpayer is 3 required to report to the United States treasury department but only 4 such portion of such exclusion or deduction which is not in excess of 5 the amount of the credit allowed pursuant to subdivision fourteen of 6 section 11-604 of this subchapter, 7 (4-d) the amount allowed as an exclusion or deduction for sales and 8 use taxes imposed by section eleven hundred seven of the tax law in 9 determining the entire taxable income which the taxpayer is required to 10 report to the United States Treasury Department, but only such portion 11 of such exclusion or deduction which is not in excess of the amount of 12 the credit allowed pursuant to subdivision fifteen of section 11-604 of 13 this chapter, 14 (4-g) The amount allowed as an exclusion or deduction for sales and 15 use taxes imposed by section eleven hundred seven of the tax law, or for 16 any interest imposed in connection therewith, in determining the entire 17 taxable income which the taxpayer is required to report to the United 18 States treasury department but only such portion of such exclusion or 19 deduction which is not in excess of the amount of the credit allowed 20 pursuant to subdivision seventeen-a of section 11-604 of this subchap- 21 ter. 22 (6) in the discretion of the commissioner of finance, any amount of 23 interest directly or indirectly and any other amount directly or indi- 24 rectly attributable as a carrying charge or otherwise to subsidiary 25 capital or to income, gains or losses from subsidiary capital, 26 (7) any amount by reason of the granting, issuing or assuming of a 27 restricted stock option, as defined in the internal revenue code of 28 nineteen hundred fifty-four, or by reason of the transfer of the share 29 of stock upon the exercise of the option, unless such share is disposed 30 of by the grantee of the option within two years from the date of the 31 granting of the option or within six months after the transfer of such 32 share to the grantee, 33 (8) in the case of a taxpayer who is separately or as a partner of a 34 partnership doing an insurance business as a member of the New York 35 insurance exchange described in section six thousand two hundred one of 36 the insurance law, such taxpayer's distributive or pro rata share of the 37 allocated entire net income of such business as determined under 38 sections fifteen hundred three and fifteen hundred four of the tax law, 39 provided however, in the event such allocated entire net income is a 40 loss, such taxpayer's distributive or pro rata share of such loss shall 41 not be subtracted from federal taxable income in computing entire net 42 income under this subdivision, 43 (9) for taxable years beginning after December thirty-first, nineteen 44 hundred eighty-one, except with respect to property which is a qualified 45 mass commuting vehicle described in subparagraph (D) of paragraph eight 46 of subsection (f) of section one hundred sixty-eight of the internal 47 revenue code, relating to qualified mass commuting vehicles, and proper- 48 ty of a taxpayer principally engaged in the conduct of an aviation, 49 steamboat, ferry or navigation business, or two or more of such busi- 50 nesses, which is placed in service before taxable years beginning in 51 nineteen hundred eighty-nine, any amount which the taxpayer claimed as a 52 deduction in computing its federal taxable income solely as a result of 53 an election made pursuant to the provisions of such paragraph eight as 54 it was in effect for agreements entered into prior to January first, 55 nineteen hundred eighty-four,

S. 8578 440 1 (10) for taxable years beginning after December thirty-first, nineteen 2 hundred eighty-one, except with respect to property which is a qualified 3 mass commuting vehicle described in subparagraph (D) of paragraph eight 4 of subsection (f) of section one hundred sixty-eight of the internal 5 revenue code, relating to qualified mass commuting vehicles, and proper- 6 ty of a taxpayer principally engaged in the conduct of an aviation, 7 steamboat, ferry or navigation business, or two or more of such busi- 8 nesses, which is placed in service before taxable years beginning in 9 nineteen hundred eighty-nine, any amount which the taxpayer would have 10 been required to include in the computation of its federal taxable 11 income had it not made the election permitted pursuant to such paragraph 12 eight as it was in effect for agreements entered into prior to January 13 first, nineteen hundred eighty-four, 14 (11) in the case of property placed in service in taxable years begin- 15 ning before nineteen hundred ninety-four, for taxable years beginning 16 after December thirty-first, nineteen hundred eighty-one, except with 17 respect to property subject to the provisions of section two hundred 18 eighty-F of the internal revenue code, property subject to the 19 provisions of section one hundred sixty-eight of the internal revenue 20 code which is placed in service in this state in taxable years beginning 21 after December thirty-first, nineteen hundred eighty-four and property 22 of a taxpayer principally engaged in the conduct of an aviation, steam- 23 boat, ferry or navigation business, or two or more of such businesses, 24 which is placed in service before taxable years beginning in nineteen 25 hundred eighty-nine, the amount allowable as a deduction determined 26 under section one hundred sixty-eight of the internal revenue code, 27 (12) upon the disposition of property to which paragraph (j) of this 28 subdivision applies, the amount, if any, by which the aggregate of the 29 amounts described in such paragraph (j) attributable to such property 30 exceeds the aggregate of the amounts described in subparagraph eleven of 31 this paragraph attributable to such property, 32 (13) for taxable years ending after September tenth, two thousand one, 33 in the case of qualified property described in paragraph two of 34 subsection k of section one hundred sixty-eight of the internal revenue 35 code, other than qualified resurgence zone property described in para- 36 graph (m) of this subdivision, and other than qualified New York Liberty 37 Zone property described in paragraph two of subsection b of section 38 fourteen hundred L of the internal revenue code, without regard to 39 clause (i) of subparagraph (C) of such paragraph, the amount allowable 40 as a deduction under section one hundred sixty-seven of the internal 41 revenue code, 42 (14) for taxable years beginning on or after January first, two thou- 43 sand four, in the case of a taxpayer that is not an eligible farmer as 44 defined in subsection (n) of section six hundred six of the tax law, the 45 amount allowable as a deduction under sections one hundred seventy-nine, 46 one hundred sixty-seven and one hundred sixty-eight of the internal 47 revenue code with respect to a sport utility vehicle that is not a 48 passenger automobile as defined in paragraph five of subsection (d) of 49 section two hundred eighty F of the internal revenue code, 50 (15) the amount of any deduction allowed pursuant to section one 51 hundred ninety-nine of the internal revenue code, 52 (16) the amount of any federal deduction for taxes imposed under arti- 53 cle twenty-three of the tax law, 54 (17) the amount of any federal deduction that would have been allowed 55 pursuant to subparagraph (A) of paragraph one of subdivision (a) of 56 section two hundred fifty of the internal revenue code if the taxpayer

S. 8578 441 1 had not made an election under subchapter s of chapter one of the inter- 2 nal revenue code, 3 (18) for taxable years beginning in two thousand nineteen and two 4 thousand twenty, the amount of the increase in the federal interest 5 deduction allowed pursuant to paragraph ten of subdivision (j) of 6 section one hundred sixty-three of the internal revenue code, and 7 (19) the amount of any gain excluded from federal gross income for the 8 taxable year by subparagraph (A) of paragraph (1) of subsection (a) of 9 section one thousand four hundred Z-two of the internal revenue code. 10 (c) Entire net income shall include income within and without the 11 United States; 12 (c-1)(1) Notwithstanding any other provision of this subchapter, in 13 the case of a taxpayer which is a foreign air carrier holding a foreign 14 air carrier permit issued by the United States department of transporta- 15 tion pursuant to section four hundred two of the federal aviation act of 16 nineteen hundred fifty-eight, as amended, and which is qualified under 17 subparagraph two of this paragraph, entire net income shall not include, 18 and shall be computed without the deduction of, amounts directly or 19 indirectly attributable to, (i) any income derived from the interna- 20 tional operation of aircraft as described in and subject to the 21 provisions of section eight hundred eighty-three of the internal revenue 22 code, (ii) income without the United States which is derived from the 23 operation of aircraft, and (iii) income without the United States which 24 is of a type described in subdivision (a) of section eight hundred 25 eighty-one of the internal revenue code except that it is derived from 26 sources without the United States. Entire net income shall include 27 income described in clauses (i), (ii) and (iii) of this subparagraph in 28 the case of taxpayers not described in this subparagraph. 29 (2) A taxpayer is qualified under this subparagraph if air carriers 30 organized in the United States and operating in the foreign country or 31 countries in which the taxpayer has its major base of operations and in 32 which it is organized, resident or headquartered, if not in the same 33 country as its major base of operations, are not subject to any income 34 tax or other tax based on or measured by income or receipts imposed by 35 such foreign country or countries or any political subdivision thereof, 36 or if so subject to such tax, are provided an exemption from such tax 37 equivalent to that provided for in this paragraph. 38 (d) The commissioner of finance may, whenever necessary in order prop- 39 erly to reflect the entire net income of any taxpayer, determine the 40 year or period in which any item of income or deduction shall be 41 included, without regard to the method of accounting employed by the 42 taxpayer; 43 (e) The entire net income of any bridge commission created by act of 44 congress to construct a bridge across an international boundary means 45 its gross income less the expense of maintaining and operating its prop- 46 erties, the annual interest upon its bonds and other obligations, and 47 the annual charge for the retirement of such bonds or obligations at 48 maturity; 49 (f) A net operating loss deduction shall be allowed which shall be the 50 same as the net operating loss deduction allowed under section one 51 hundred seventy-two of the internal revenue code or which would have 52 been allowed if the taxpayer had not made an election under subchapter s 53 of chapter one of the internal revenue code, except that in every 54 instance where such deduction is allowed under this subchapter: 55 (1) any net operating loss included in determining such deduction 56 shall be adjusted to reflect the inclusions and exclusions from entire

S. 8578 442 1 net income pursuant to paragraphs (a), (b), (g) and (h) of this subdivi- 2 sion, 3 (2) such deductions shall not include any net operating loss sustained 4 during any taxable year in which the taxpayer was not subject to the tax 5 imposed by this subchapter, 6 (3) such deduction shall not exceed the deduction for the taxable year 7 allowed under section one hundred seventy-two of the internal revenue 8 code, or the deduction for the taxable year which would have been 9 allowed if the taxpayer had not made an election under subchapter s of 10 chapter one of the internal revenue code, 11 (4) any net operating loss for a taxable year beginning in nineteen 12 hundred eighty-one shall be computed without regard to the deduction 13 allowed with respect to recovery property under section one hundred 14 sixty-eight of the internal revenue code; in lieu of such deduction, a 15 taxpayer shall be allowed for such taxable year with respect to such 16 property the depreciation deduction allowable under section one hundred 17 sixty-seven of such code as such section was in full force and effect on 18 December thirty-first, nineteen hundred eighty, and 19 (5) the net operating loss deduction allowed under section one hundred 20 seventy-two of the internal revenue code shall for purposes of this 21 paragraph be determined as if the taxpayer had elected under such 22 section to relinquish the entire carryback period with respect to net 23 operating losses, except with respect to the first ten thousand dollars 24 of each of such losses, sustained during taxable years ending after June 25 thirtieth, nineteen hundred eighty-nine. 26 (6) Notwithstanding any other provision of this subchapter to the 27 contrary, for taxable years beginning before January first, two thousand 28 twenty-one, any amendment to section one hundred seventy-two of the 29 internal revenue code made after March first, two thousand twenty shall 30 not apply to this subchapter. 31 (g) At the election of the taxpayer, a deduction shall be allowed for 32 expenditures paid or incurred during the taxable year for the 33 construction, reconstruction, erection or improvement of industrial 34 waste treatment facilities and air pollution control facilities. 35 (1)(A) The term "industrial waste treatment facilities" shall mean 36 facilities for the treatment, neutralization or stabilization of indus- 37 trial waste, as the term "industrial waste" is defined in section 38 17-0105 of the environmental conservation law, from a point immediately 39 preceding the point of such treatment, neutralization or stabilization 40 to the point of disposal, including the necessary pumping and transmit- 41 ting facilities, but excluding such facilities installed for the primary 42 purpose of salvaging materials which are usable in the manufacturing 43 process or are marketable. 44 (B) The term "air pollution control facilities" shall mean facilities 45 which remove, reduce, or render less noxious air contaminants emitted 46 from an air contamination source, as the terms "air contaminant" and 47 "air contamination source" are defined in section 19-0107 of the envi- 48 ronmental conservation law, from a point immediately preceding the point 49 of such removal, reduction or rendering to the point of discharge of 50 air, meeting emission standards as established by the air pollution 51 control board, but excluding such facilities installed for the primary 52 purpose of salvaging materials which are usable in the manufacturing 53 process or are marketable and excluding those facilities which rely for 54 their efficacy on dilution, dispersion or assimilation of air contam- 55 inants in the ambient air after emission.

S. 8578 443 1 (2) However, such deduction shall be allowed only (A) with respect to 2 tangible property which is depreciable, pursuant to section one hundred 3 sixty-seven of the internal revenue code, having a situs in the city and 4 used in the taxpayer's trade or business, the construction, recon- 5 struction, erection or improvement of which, in the case of industrial 6 waste treatment facilities, is initiated on or after January first, 7 nineteen hundred sixty-six, and only for expenditures paid or incurred 8 prior to January first, nineteen hundred seventy-two, or which, in the 9 case of air pollution control facilities, is initiated on or after Janu- 10 ary first, nineteen hundred sixty-six, and 11 (B) on condition that such facilities have been certified by the state 12 commissioner of environmental conservation or the state commissioner's 13 designated representative, in the same manner as provided for in section 14 17-0707 or 19-0309 of the environmental conservation law, as applicable, 15 as complying with applicable provisions of the environmental conserva- 16 tion law, the state sanitary code and regulations, permits or orders 17 issued pursuant thereto, and 18 (C) on condition that entire net income for the taxable year and all 19 succeeding taxable years be computed without any deductions for such 20 expenditures or for depreciation of the same property other than the 21 deductions allowed by this paragraph except to the extent that the basis 22 of the property may be attributable to factors other than such expendi- 23 tures, or in case a deduction is allowable pursuant to this paragraph 24 for only a part of such expenditures, on condition that any deduction 25 allowed for federal income tax purposes for such expenditures or for 26 depreciation of the same property be proportionately reduced in comput- 27 ing entire net income for the taxable year and all succeeding taxable 28 years, and 29 (D) where the election provided for in paragraph (d) of subdivision 30 three of section 11-604 of this subchapter has not been exercised in 31 respect to the same property. 32 (3)(A) If expenditures in respect to an industrial waste treatment 33 facility or an air pollution control facility have been deducted as 34 provided herein and if within ten years from the end of the taxable year 35 in which such deduction was allowed such property or any part thereof is 36 used for the primary purpose of salvaging materials which are usable in 37 the manufacturing process or are marketable, the taxpayer shall report 38 such change of use in its report for the first taxable year during which 39 it occurs, and the commissioner of finance may recompute the tax for the 40 year or years for which such deduction was allowed and any carryback or 41 carryover year, and may assess any additional tax resulting from such 42 recomputation within the time fixed by paragraph (h) of subdivision 43 three of section 11-674 of this chapter. 44 (B) If a deduction is allowed as herein provided for expenditures paid 45 or incurred during any taxable year on the basis of a temporary certif- 46 icate of compliance issued pursuant to the environmental conservation 47 law and if the taxpayer fails to obtain a permanent certificate of 48 compliance upon completion of the facilities with respect to which such 49 temporary certificate was issued, the taxpayer shall report such failure 50 in its report for the taxable year during which such facilities are 51 completed, and the commissioner of finance may recompute the tax for the 52 year or years for which such deduction was allowed and any carryback or 53 carryover year, and may assess any additional tax resulting from such 54 recomputation within the time fixed by paragraph (h) of subdivision 55 three of section 11-674 of this chapter.

S. 8578 444 1 (4) In any taxable year when property is sold or otherwise disposed 2 of, with respect to which a deduction has been allowed pursuant to this 3 paragraph, such deduction shall be disregarded in computing gain or 4 loss, and the gain or loss on the sale or other disposition of such 5 property shall be the gain or loss entering into the computation of 6 entire taxable income which the taxpayer is required to report to the 7 United States treasury for such taxable year; 8 (h) With respect to gain derived from the sale or other disposition of 9 any property acquired prior to January first, nineteen hundred sixty- 10 six; which had a federal adjusted basis on such date, or on the date of 11 its sale or other disposition prior to January first, nineteen hundred 12 sixty-six, lower than its fair market value on January first, nineteen 13 hundred sixty-six or the date of its sale or other disposition prior 14 thereto, except property described in subsections one and four of 15 section twelve hundred twenty-one of the internal revenue code, there 16 shall be deducted from entire net income, the difference between (1) the 17 amount of the taxpayer's federal taxable income, and (2) the amount of 18 the taxpayer's federal taxable income, if smaller than the amount 19 described in subparagraph one of this paragraph computed as if the 20 federal adjusted basis of each such property on the sale or other dispo- 21 sition of which gain was derived, on the date of the sale or other 22 disposition had been equal to either (A) its fair market value on Janu- 23 ary first, nineteen hundred sixty-six or the date of its sale or other 24 disposition prior to January first, nineteen hundred sixty-six, plus or 25 minus all adjustments to basis made with respect to such property for 26 federal income tax purposes for periods on and after January first, 27 nineteen hundred sixty-six or (B) the amount realized from its sale or 28 disposition, whichever is lower; provided, however, that the total 29 modification provided by this paragraph shall not exceed the amount of 30 the taxpayer's net gain from the sale or other disposition of all such 31 property. 32 (i) If the period covered by a report under this subchapter is other 33 than the period covered by the report of the United States treasury 34 department, entire net income shall be determined by multiplying the 35 federal taxable income, as adjusted pursuant to the provisions of this 36 subchapter, by the number of calendar months or major parts thereof 37 covered by the report under this subchapter and dividing by the number 38 of calendar months or major parts thereof covered by the report to such 39 department. 40 If it shall appear that such method of determining entire net income 41 does not properly reflect the taxpayer's income during the period 42 covered by the report under this subchapter, the commissioner of finance 43 shall be authorized in his or her discretion to determine such entire 44 net income solely on the basis of the taxpayer's income during the peri- 45 od covered by its report under this subchapter. 46 (j) In the case of property placed in service in taxable years begin- 47 ning before nineteen hundred ninety-four, for taxable years beginning 48 after December thirty-first, nineteen hundred eighty-one, except with 49 respect to property subject to the provisions of section two hundred 50 eighty-F of the internal revenue code and property subject to the 51 provisions of section one hundred sixty-eight of the internal revenue 52 code which is placed in service in this state in taxable years beginning 53 after December thirty-first, nineteen hundred eighty-four, and provided 54 a deduction has not been excluded from entire net income pursuant to 55 subparagraph nine of paragraph (b) of this subdivision, a taxpayer shall 56 be allowed with respect to property which is subject to the provisions

S. 8578 445 1 of section one hundred sixty-eight of the internal revenue code the 2 depreciation deduction allowable under section one hundred sixty-seven 3 of the internal revenue code as such section would have applied to prop- 4 erty placed in service on December thirty-first, nineteen hundred 5 eighty. This paragraph shall not apply to property of a taxpayer princi- 6 pally engaged in the conduct of an aviation, steamboat, ferry or naviga- 7 tion business, or two or more of such businesses, which is placed in 8 service before taxable years beginning in nineteen hundred eighty-nine. 9 (k) for taxable years ending after September tenth, two thousand one, 10 in the case of qualified property described in paragraph two of 11 subsection k of section one hundred sixty-eight of the internal revenue 12 code, other than qualified resurgence zone property described in para- 13 graph (m) of this subdivision, and other than qualified New York Liberty 14 Zone property described in paragraph two of subsection b of section 15 fourteen hundred L of the internal revenue code, without regard to 16 clause (i) of subparagraph (C) of such paragraph, the depreciation 17 deduction allowable under section one hundred sixty-seven as such 18 section would have applied to such property had it been acquired by the 19 taxpayer on September tenth, two thousand one, provided, however, that 20 for taxable years beginning on or after January first, two thousand 21 four, in the case of a passenger motor vehicle or a sport utility vehi- 22 cle subject to the provisions of paragraph (o) of this subdivision, the 23 limitation under clause (i) of subparagraph (A) of paragraph one of 24 subdivision (a) of section two hundred eighty-F of the internal revenue 25 code applicable to the amount allowed as a deduction under this para- 26 graph shall be determined as of the date such vehicle was placed in 27 service and not as of September tenth, two thousand one. 28 (l) for taxable years ending after September tenth, two thousand one, 29 upon the disposition of property to which paragraph (k) of this subdivi- 30 sion applies, the amount of any gain or loss includible in entire net 31 income shall be adjusted to reflect the inclusions and exclusions from 32 entire net income pursuant to subparagraph twelve of paragraph (a) and 33 subparagraph thirteen of paragraph (b) of this subdivision attributable 34 to such property. 35 (m) for purposes of this paragraph and paragraph (l) of this subdivi- 36 sion, qualified resurgence zone property shall mean qualified property 37 described in paragraph two of subsection k of section one hundred 38 sixty-eight of the internal revenue code substantially all of the use of 39 which is in the resurgence zone, as defined in this paragraph, and is in 40 the active conduct of a trade or business by the taxpayer in such zone, 41 and the original use of which in the resurgence zone commences with the 42 taxpayer after September tenth, two thousand one. The resurgence zone 43 shall mean the area of New York county bounded on the south by a line 44 running from the intersection of the Hudson River with the Holland 45 Tunnel, and running thence east to Canal Street, then running along the 46 centerline of Canal Street to the intersection of the Bowery and Canal 47 Street, running thence in a southeasterly direction diagonally across 48 Manhattan Bridge Plaza, to the Manhattan Bridge, and thence along the 49 centerline of the Manhattan Bridge to the point where the centerline of 50 the Manhattan Bridge would intersect with the easterly bank of the East 51 River, and bounded on the north by a line running from the intersection 52 of the Hudson River with the Holland Tunnel and running thence north 53 along West Avenue to the intersection of Clarkson Street then running 54 east along the centerline of Clarkson Street to the intersection of 55 Washington Avenue, then running south along the centerline of Washington 56 Avenue to the intersection of West Houston Street, then east along the

S. 8578 446 1 centerline of West Houston Street, then at the intersection of the 2 Avenue of the Americas continuing east along the centerline of East 3 Houston Street to the easterly bank of the East River. 4 (n) Related members expense add back. 5 (1) Definitions. (A) Related member. "Related member" means a related 6 person as defined in subparagraph (c) of paragraph three of subsection 7 (b) of section four hundred sixty-five of the internal revenue code, 8 except that "fifty percent" shall be substituted for "ten percent". 9 (B) Effective rate of tax. "Effective rate of tax" means, as to any 10 city, the maximum statutory rate of tax imposed by the city on or meas- 11 ured by a related member's net income multiplied by the apportionment 12 percentage, if any, applicable to the related member under the laws of 13 said jurisdiction. For purposes of this definition, the effective rate 14 of tax as to any city is zero where the related member's net income tax 15 liability in said city is reported on a combined or consolidated return 16 including both the taxpayer and the related member where the reported 17 transactions between the taxpayer and the related member are eliminated 18 or offset. Also, for purposes of this definition, when computing the 19 effective rate of tax for a city in which a related member's net income 20 is eliminated or offset by a credit or similar adjustment that is 21 dependent upon the related member either maintaining or managing intan- 22 gible property or collecting interest income in that city, the maximum 23 statutory rate of tax imposed by said city shall be decreased to reflect 24 the statutory rate of tax that applies to the related member as effec- 25 tively reduced by such credit or similar adjustment. 26 (C) Royalty payments. Royalty payments are payments directly connected 27 to the acquisition, use, maintenance or management, ownership, sale, 28 exchange, or any other disposition of licenses, trademarks, copyrights, 29 trade names, trade dress, service marks, mask works, trade secrets, 30 patents and any other similar types of intangible assets as determined 31 by the commissioner of finance, and include amounts allowable as inter- 32 est deductions under section one hundred sixty-three of the internal 33 revenue code to the extent such amounts are directly or indirectly for, 34 related to or in connection with the acquisition, use, maintenance or 35 management, ownership, sale, exchange or disposition of such intangible 36 assets. 37 (D) Valid business purpose. A valid business purpose is one or more 38 business purposes, other than the avoidance or reduction of taxation, 39 which alone or in combination constitute the primary motivation for some 40 business activity or transaction, which activity or transaction changes 41 in a meaningful way, apart from tax effects, the economic position of 42 the taxpayer. The economic position of the taxpayer includes an increase 43 in the market share of the taxpayer, or the entry by the taxpayer into 44 new business markets. 45 (2) Royalty expense add backs. (A) For the purpose of computing entire 46 net income or other applicable taxable basis, a taxpayer must add back 47 royalty payments directly or indirectly paid, accrued, or incurred in 48 connection with one or more direct or indirect transactions with one or 49 more related members during the taxable year to the extent deductible in 50 calculating federal taxable income. 51 (B) (i) The adjustment required in this paragraph shall not apply to 52 the portion of the royalty payment that the taxpayer establishes, by 53 clear and convincing evidence of the type and in the form specified by 54 the commissioner of finance, meets all of the following requirements: 55 (I) the related member was subject to tax in this city or another city 56 within the United States or a foreign nation or some combination thereof

S. 8578 447 1 on a tax base that included the royalty payment paid, accrued or 2 incurred by the taxpayer; (II) the related member during the same taxa- 3 ble year directly or indirectly paid, accrued or incurred such portion 4 to a person that is not a related member; and (III) the transaction 5 giving rise to the royalty payment between the taxpayer and the related 6 member was undertaken for a valid business purpose. 7 (ii) The adjustment required in this paragraph shall not apply if the 8 taxpayer establishes, by clear and convincing evidence of the type and 9 in the form specified by the commissioner of finance, that: (I) the 10 related member was subject to tax on or measured by its net income in 11 this city or another city within the United States, or some combination 12 thereof; (II) the tax base for said tax included the royalty payment 13 paid, accrued or incurred by the taxpayer; and (III) the aggregate 14 effective rate of tax applied to the related member in those jurisdic- 15 tions is no less than eighty percent of the statutory rate of tax that 16 applied to the taxpayer under section 11-604 of this subchapter for the 17 taxable year. 18 (iii) The adjustment required in this paragraph shall not apply if the 19 taxpayer establishes, by clear and convincing evidence of the type and 20 in the form specified by the commissioner of finance, that: (I) the 21 royalty payment was paid, accrued or incurred to a related member organ- 22 ized under the laws of a country other than the United States; (II) the 23 related member's income from the transaction was subject to a comprehen- 24 sive income tax treaty between such country and the United States; (III) 25 the related member was subject to tax in a foreign nation on a tax base 26 that included the royalty payment paid, accrued or incurred by the 27 taxpayer; (IV) the related member's income from the transaction was 28 taxed in such country at an effective rate of tax at least equal to that 29 imposed by this city; and (V) the royalty payment was paid, accrued or 30 incurred pursuant to a transaction that was undertaken for a valid busi- 31 ness purpose and using terms that reflect an arm's length relationship. 32 (iv) The adjustment required in this paragraph shall not apply if the 33 taxpayer and the commissioner of finance agree in writing to the appli- 34 cation or use of alternative adjustments or computations. The commis- 35 sioner of finance may, in his or her discretion, agree to the applica- 36 tion or use of alternative adjustments or computations when he or she 37 concludes that in the absence of such agreement the income of the 38 taxpayer would not be properly reflected. 39 (o) For taxable years beginning on or after January first, two thou- 40 sand four, in the case of a taxpayer that is not an eligible farmer as 41 defined in subsection (n) of section six hundred six of the tax law, the 42 deductions allowable under sections one hundred seventy-nine, one 43 hundred sixty-seven and one hundred sixty-eight of the internal revenue 44 code with respect to a sport utility vehicle that is not a passenger 45 automobile as defined in paragraph five of subsection (d) of section two 46 hundred eighty-F of the internal revenue code, determined as if such 47 sport utility vehicle were a passenger automobile as defined in such 48 paragraph five. For purposes of paragraph (k) and subparagraph thirteen 49 of paragraph (b) of this subdivision, the terms qualified resurgence 50 zone property and qualified New York Liberty Zone property described in 51 paragraph two of subsection b of section fourteen hundred-L of the 52 internal revenue code shall not include any sport utility vehicle that 53 is not a passenger automobile as defined in paragraph five of subsection 54 (d) of section two hundred eighty-F of the internal revenue code. 55 (p) Upon the disposition of property to which paragraph (o) of this 56 subdivision applies, the amount of any gain or loss includible in entire

S. 8578 448 1 net income shall be adjusted to reflect the inclusions and exclusions 2 from entire net income pursuant to subparagraph thirteen of paragraph 3 (a) and subparagraph fourteen of paragraph (b) of this subdivision 4 attributable to such property. 5 9. (a) The term "calendar year" means a period of twelve calendar 6 months, or any shorter period beginning on the date the taxpayer becomes 7 subject to the tax imposed by this subchapter, ending on the thirty- 8 first day of December, provided the taxpayer keeps its books on the 9 basis of such period or on the basis of any period ending on any day 10 other than the last day of a calendar month, or provided the taxpayer 11 does not keep books, and includes, in case the taxpayer changes the 12 period on the basis of which it keeps its books from a fiscal year to a 13 calendar year, the period from the close of its last old fiscal year up 14 to and including the following December thirty-first. 15 (b) The term "fiscal year" means a period of twelve calendar months, 16 or any shorter period beginning on the date the taxpayer becomes subject 17 to the tax imposed by this subchapter, ending on the last day of any 18 month other than December, provided the taxpayer keeps its books on the 19 basis of such period, and includes, in case the taxpayer changes the 20 period on the basis of which it keeps its books from a calendar year to 21 a fiscal year or from one fiscal year to another fiscal year, the period 22 from the close of its last old calendar or fi

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