Honorable Sheldon Silver
Speaker of the Assembly
Legislative Office Building, Room 932
Albany, NY 12248

Dear Speaker Silver:

I am pleased to submit to you the 2005 Annual Report of the Assembly Standing Committee on Local Governments.

The Committee addressed several important issues this year, encouraging consolidation and cooperation, easing administrative burdens and extending the Private Activity Bond Allocation Act. This report describes the legislative actions and major issues considered by the Committee and sets forth our goals for continued legislative support of municipalities and their residents throughout the State.

I share with you an appreciation of the role municipalities play in providing essential services to the residents of this State and acknowledge your continuing support and leadership in ensuring that the Local Governments Committee continues to address issues facing New York’s municipalities. With your assistance, the Committee will continue to focus on the needs of local governments.

Robert K. Sweeney, Chairman
Assembly Standing Committee on
Local Governments

2005 ANNUAL REPORT

OF THE NEW YORK STATE ASSEMBLY

STANDING COMMITTEE ON LOCAL GOVERNMENTS

Robert K. Sweeney, Chairman

Committee Members

1. INTRODUCTION
2. MAJOR ISSUES OF 2005
   1. LOCAL GOVERNMENT AID - ENACTED BUDGET
   2. MUNICIPAL BUDGET RELIEF
   3. INDUSTRIAL DEVELOPMENT AGENCIES
   4. PRIVATE ACTIVITY BOND ALLOCATION PROCESS
   5. 911 EMERGENCY SERVICE
   6. AFFORDABLE HOUSING
   7. PUBLIC EMPLOYEES
   8. MUNICIPAL FINANCES
   9. MUNICIPAL CORPORATIONS
   10. DISABILITY COVERAGE
   11. DEBT INSTRUMENTS
   12. ELECTION REFORMS
   13. MUNICIPAL ZONING
   14. LAND TRANSFER AUTHORIZATIONS
3. EMERGENCY SERVICES
   1. FIRST RESPONDERS
   2. VOLUNTEER FIREFIGHTERS
4. PARKLAND ALIENATION LEGISLATION
5. PUBLIC HEARINGS
   1. INDUSTRIAL DEVELOPMENT AGENCIES
   2. PROCUREMENT
   3. EMINENT DOMAIN
   4. BUDGET IMPLEMENTATION
   5. DISASTER PREPAREDNESS

The Assembly Standing Committee on Local Governments considers the legislative needs of New York State’s local governments, which includes counties, cities, towns, villages, school districts, fire districts, and various other special districts. The Committee’s goal is to monitor the problems of local governments, to develop legislative remedies to these problems, and to research new proposals that will enable local governments to serve the needs of New York State better. The Committee is concerned with the enactment of laws that will further improve local governments’ ability to address their unique problems, as well as prohibiting the enactment of laws that would impede local governments in their delivery of local services.

New York State statutes affected by proposed legislation before the committee include: the General Municipal, Municipal Home Rule, Local Finance, County, Town, Village, Volunteer Firefighters’ Benefit and Volunteer Ambulance Workers’ Benefit Laws. Since the powers of local governments are so broad, the Committee’s concerns range widely - from the general area of municipal finance, to the creation of a special district. Home rule, or "special legislation," is also addressed by the Committee. These measures concern problems of specific local governments and apply to a particular jurisdiction. For example, a home rule bill might permit the establishment of a special district for a town to remedy a local problem. Through the use of special legislation to solve individual local needs, the Committee has helped to resolve hundreds of unique problems and enabled local governments to better serve their citizens.

1. LOCAL GOVERNMENT AID - ENACTED BUDGET

   This year the Legislature enacted its first on-time budget in almost twenty years. The Budget for the 2005-2006 State fiscal year consolidated all existing revenue sharing programs into the Aid and Incentives for Municipalities (AIM) program. As a result, Revenue Sharing, Supplemental Municipal Aid, Emergency Financial Aid to Certain Cities, and Emergency Financial Aid to Eligible Municipalities will no longer appear as separate funding streams.

   The Legislature added $7,949,000 in local assistance grants over the Executive Budget. This includes an additional 12.75 percent increase for cities over their State Fiscal year 2004-2005 amount. Cities are required to submit written certification to the Division of the Budget indicating that they have completed three-year financial plans and have minimized property tax growth. If a city does not submit certification, additional revenue sharing could be withheld beginning in State Fiscal Year 2006-2007. Towns and villages received an increase of 3.75 percent in revenue sharing, with no village or town receiving less than a $500 increase.

   The Budget also included a Shared Municipal Services Initiative (SMSI) program. This program, funded at $2.75 million, will be administered by the Department of State and will provide grants of up to $100,000 per municipality. Grants will be awarded to localities that share services or merge with other municipalities. Municipalities must provide a 10 percent match. Authorized costs are limited to legal and consultant services, feasibility studies, capital improvements and other necessary expenses, not including salaries and other recurring expenses.

2. MUNICIPAL BUDGET RELIEF
   
   

   Local Government Medicaid Relief
   
   Effective January 1, 2006, local Medicaid spending will be capped at the calendar year 2005 spending level for each county, plus an annual growth factor. The growth rate is 3.5 percent for 2006; 3.25 percent for 2007; and 3 percent for 2008 and each year thereafter. Beginning in January 2008, counties will have the option of continuing under a cap or electing to have the State assume the full local cost of Medicaid in exchange for remitting to the State a calculated percentage of local sales tax revenue. This proposal is expected to provide $121,000,000 in local relief for State fiscal year 2005-06.
   
   The Budget also establishes local social services district accountability measures that authorize the Department of Health to review the management of Medicaid services for every social services district and to assess sanctions on those counties that fail to monitor utilization diligently within the Medicaid Program.

   
   State Takeover of Local Costs of Family Health Plus Program
   
   Family Health Plus (FHP) is a public health insurance program for adults between the ages of 19 and 64 who do not have health insurance, but have incomes too high to qualify for Medicaid. The program provides comprehensive coverage through participating managed care plans.
   
   In the 2004-2005 Budget, the Legislature authorized the State to assume 50 percent of local program expenditures starting January 2005 and 100 percent of local program costs starting January 2006. This was projected to save counties an estimated $49.3 million in State Fiscal Year 2004-05 and approximately $250 million in State Fiscal Year 2006. The State assumption of the local share provided counties with much-needed fiscal relief while still preserving the integrity of the program.
   
   The 2005-2006 Budget accelerates the full State takeover of the Family Health Plus Program for counties outside of New York City to October 1, 2005 from January 1, 2006. This acceleration is projected to provide $25,000,000 in local fiscal relief for State Fiscal Year 2005-06.
   
   Road Improvement Funding
   
   The 2005-2006 Budget reauthorized the Consolidated Local Street and Highway Improvement Program (CHIPs) and the Municipal Streets and Highways Program (Marchiselli), and increased the funding level by a total of $98,600,000 over five years.

3. INDUSTRIAL DEVELOPMENT AGENCIES

   Industrial Development Agency Authorization
   (A.8963 Sweeney; Chapter 159 of the Laws of 2005)
   
   Industrial Development Agencies (IDAs) have been created by the State Legislature to promote the economic welfare and prosperity of the State’s inhabitants and to actively promote, attract, encourage and develop economically sound commerce and industry for the purpose of preventing unemployment and economic deterioration. Currently, there are 116 county and municipal-level IDAs.
   
   Several provisions of the IDA statute were set to expire on July 1st of this year including: the authorization for IDAs to finance civic facility and continuing care retirement projects; certain tax policies; and, restrictions on the use of agency funds. On January 18th, the Committee held a hearing in Albany to solicit input on the role of IDAs. Witnesses included IDA representatives, reform groups and interested third parties. Both critics and supporters advocated extending the expiring provisions.
   
   This legislation will extend, until July 1, 2006, the existing provisions of the IDA statute without modification.
   
   

4. PRIVATE ACTIVITY BOND ALLOCATION PROCESS
   

   
   Private Activity Bond Allocation Formula
   (A.3981 Sweeney; Chapter 79 of the Laws of 2005)
   
   The Federal Tax Reform Act of 1986, imposed a ceiling on the volume of private activity and certain other bonds that can be issued in a state in any given year. The Reform Act also established an allocation formula that provided 50 percent of the Statewide Industrial Development Bond (IDB) cap to State agencies and the remaining 50 percent to local governments. Federal law permitted temporary modification of this allocation formula by gubernatorial executive order until December 31, 1987. Following this sunset, the Federal Act permitted the State Legislature to establish an alternative formula for allocation legislatively. The system proposed in this bill, implemented in 2000, has worked well and operates smoothly and efficiently. Issuers around the State are familiar with the process, meaning that the statutory continuation of this approach will provide the least disruptive, most flexible and least costly alternative for the allocation of the State’s bond volume.
   
   The legislation passed this year strongly resembles the legislation passed in 2000, which originally established a distribution of ? of the statewide allocation to Industrial Development Agencies (IDAs); ? to State agencies; and ? to a statewide bond reserve, for use by both State and local agencies. However, this year’s legislation includes the modifications made in 2001 to take into account the increased per person dollar allocation of bonding authority. The federal government provides an allocation of tax free bonding authority based on a certain dollar value per person - in 2000 that value was $50 per person, and in 2001 that value increased to $62.50. The available allocation for 2005 is $1.5 billion. Additional details of the allocation formula follow.
   
   Allocation Formula:
   The statewide bond volume ceiling established under the Federal Tax Reform Acts of 1984 and 1986 will be allocated as follows:
   -One-third to local Industrial Development Agencies based on population; -One-third to State agencies; and,
   -One-third to a statewide bond reserve, for use by both State and local agencies.
   
   Distribution of Statewide Bond Reserve:
   If the allocation to a local IDA is insufficient for a specific project, the IDA may apply at any time to the Commissioner of the Department of Economic Development (DED) for an allocation from the bond reserve. The Commissioner will ensure equitable distribution of the reserve to local IDAs. The Director of the Division of the Budget (DOB) will make an allocation of the reserve to State agencies if an agency’s allocation is insufficient for a specific issue.
   
   Year-End Allocation Recapture:
   Each State and local agency must report, by October 1st of each year, the amount of the agency’s unused allocation. The unused allocations will be recaptured by October 15th and added to the reserve.
   
   Allocation Carry Forward:
   On or before November 15th of each year, State agencies may apply to the Director of DOB, and IDAs may apply to the Commissioner of DED, seeking unused statewide ceiling for use in future years.
   
   New York State Bond Allocation Advisory Panel:
   The Bond Allocation Advisory Panel provides policy advice on distribution of the statewide ceiling. The five-member panel consists of designees from the Governor, the Temporary President of the Senate, the Speaker of the Assembly, the Minority Leader of the Senate and the Minority Leader of the Assembly.
   
   Future Year Allocations:
   This legislation provides an allocation of up to $300 million per year out of future federal bond allocations for the years 2006 and 2007.
   

5. 911 EMERGENCY SERVICE

   Many people purchase cellular telephones for use in an emergency, not realizing that 911 calls made from a cellular telephone are not received in the same manner as calls made from a landline phone. Dispatchers at 911 centers receiving a landline call are able to automatically identify the phone number and location of callers. Due to technological issues, dispatchers do not receive the same information from wireless callers. This is true despite a Federal Communications Commission (FCC) order issued in 1996, which requires wireless carriers to deploy wireless enhanced 911 service. Wireless enhanced 911 service refers to the ability of a call center to determine the location and identity of wireless callers.

   Aware of the need for an improved 911 system, the Legislature, in 2000, passed legislation, (A.11379 Rules - DiNapoli), intended to provide additional statewide cohesiveness within the 911 system. This legislation was vetoed by the Governor who subsequently ordered the Division of Criminal Justice Services (DCJS) to examine and report on the organization and operation of all 911 dispatching centers in the State.

   Since 1991, New York State has imposed a monthly surcharge on wireless telephone bills to finance the implementation of an enhanced emergency telephone system for wireless telephone users. The monthly surcharge had been remitted to the State Police to pay for 911-related costs. A 2002 audit by the Office of the State Comptroller (OSC) found that the surcharge money had been used to pay for costs including dry cleaning and lawn-mowing services, while the localities which provided 911 service failed to receive any funding. The same audit also estimated that surcharge revenue collections have totaled $162 million since collections first began. Despite the revenue collections, New York State has not yet implemented a wireless enhanced 911 system and lags behind many other states.

   In 2002, the Assembly successfully adopted a local enhanced wireless 911 program designed to improve the effectiveness of 911 Statewide and to provide funding to localities which answer wireless 911 calls. The highlights of the Local Enhanced Wireless 911 Program follow.

   Local Enhanced Wireless 911 Program
   
   

   Funding
   
   

   • $20 million was set aside from the existing cellular surcharge to create a local assistance program. $10 million of the available funding was recurring and $10 million was "one-time" funding.

   • Localities are eligible to receive funding based on a per capita distribution and may receive grants or participate in a bonding program administered by the Dormitory Authority to reimburse eligible 911 expenses.

   • Funding serves to reimburse "eligible wireless 911 service costs" which include installation and maintenance of hardware, software and equipment designed to meet the FCC enhanced wireless requirements which involve the ability to identify the location and identity of wireless callers.

   Board composition and powers
   
   

   • The program is administered by a 13-member board organized within the Department of State. The Governor appoints seven members and the Assembly and Senate each appoint three members. Board members were selected from a pool of stakeholders including: municipal officials, ambulance, police and fire personnel and wireless service providers.

   Eligibility
   
   

   • Counties and municipalities currently operating wireless public safety answering points are eligible to receive funding. Counties which do not currently provide wireless service and subsequently decide to participate will have to file a service plan and comply with certain minimum standards prior to receiving funding.

   Expedited Deployment Funding
   
   In the 2003-04 Budget, the Legislature provided additional funding for localities, with the development of a new program called Expedited Deployment Funding. This program dedicated a portion of the revenue from the existing surcharge on wireless phones to support $100 million in grants to help localities upgrade their wireless 911 systems. The grants help local public safety answering points meet the FCC requirements for determining wireless caller identification and location, requirements commonly referred to as Phase I and Phase II. The existing Local Enhanced Wireless 911 reimbursement program, which received $20 million in funding in the SFY 02-03 budget and $10 million in funding in the SFY 04-05 budget, will co-exist with the expedited deployment program and continue to provide reimbursements to localities for eligible wireless 911 costs. Details of the Expedited Deployment Program follow.

   • The Dormitory Authority is authorized to issue $100 million in bonds to provide grants to help local governments implement enhanced wireless 911 systems. The bonds will be paid for using revenue from the existing surcharge on wireless phones.

   • Local governments will be required to submit funding requests along with an implementation timetable, a financial plan, a list of specific projects eligible for expedited deployment funding and a resolution in support from the local governing body.

   • The 13-member State 911 Board, under the auspices of the Department of State, will approve the municipal plans and make recommendations to the Dormitory Authority, which will award the grants. The new grants will provide upfront funding to eligible municipalities to help with the acquisition of the technology needed to provide enhanced wireless 911 service.

   
   Local Surcharge Bills
   (A.1984 Sayward; Chapter 115 of the Laws of 2005 - Essex County)
   (A.5492 Casale; Chapter 117 of the Laws of 2005 - Columbia County)
   
   Essex and Columbia counties requested and received authorization to levy a monthly $.30 local surcharge on wireless telephone bills to further supplement 911 funding.

   
   Wireless Service Provider Accountability
   (A.1493 Sweeney; Passed Assembly)
   
   Numerous counties have received authorization to levy local surcharges on wireless phone bills. The surcharges are collected by wireless service providers who determine eligibility for the surcharge based on the customer’s designated place of primary use. Wireless customers across the State have complained that wireless service providers have failed to remove surcharges when the customer’s place of primary use changes to a county that does not levy a surcharge.
   
   This legislation seeks to remedy the problem by requiring wireless service providers to update customers’ records within 45 days of notification that a customer’s billing address has changed. In instances where the customer’s place of primary use changes to a county without a surcharge, wireless service providers who continue to levy the surcharge after receiving notification would be responsible for refunding any surcharges. The legislation has passed the Assembly, but the Senate has not yet taken action.

   
   Surcharge Collection Accountability
   (A.3111 Sweeney; Passed Assembly)
   
   In 2002, the Legislature shifted oversight of the Statewide wireless surcharge from the Division of the State Police to the Department of Taxation and Finance. This change was made in order to provide greater accountability in surcharge collections. A recent report from the Office of the State Comptroller found that the lack of explicit authorization for the Department of Taxation and Finance to audit wireless service providers has left the Department unable to verify surcharge collections.
   
   This legislation would require the Commissioner of Taxation and Finance to enforce the payment and collection of the State wireless communications service surcharge and authorize the Commissioner to audit and examine the books and records of wireless communications service suppliers. The legislation has passed the Assembly, but the Senate has not yet taken action.

   
   Establishment of Mutual Aid Standards
   (A.1351 Morelle; Veto 8 of 2005)
   
   Section 209-P of the General Municipal Law allows municipalities to enter into mutual aid agreements for fire protection services. However, the standards involved in these agreements vary widely throughout the State. This legislation would require the Department of State to promulgate rules and regulations establishing statewide mutual aid standards and requirements. The rules and regulations must at minimum include acceptable timeframes prior to contacting the next available service and a standard of conduct for call relays. This legislation passed the Legislature but was vetoed by the Governor.

6. AFFORDABLE HOUSING

   Long Island Workforce Housing Incentive Program
   (A.2050 DiNapoli; Passed Assembly)
   
   More than one out of four households in the country, almost 24 million, are confronting housing cost burdens. This problem is particularly acute on Long Island, with more than 25 percent of households paying over 35 percent of their gross monthly income for their rent or mortgage. In many cases on Long Island, the ratio of gross rent to income was over 50 percent. The Nassau-Suffolk Primary Metropolitan Statistical Area, as defined by the United States Department of Housing and Urban Development, has been ranked the seventh least affordable area in the nation for middle-income housing, according to a Washington D.C.-based affordable housing organization.
   
   This legislation would amend the General Municipal Law to establish the Long Island Workforce Housing Incentive Program. Local governments on Long Island that approve the construction of five or more residential housing units in one site plan would be required to provide one of the following items: affordable housing, a fee to support the construction of affordable housing or land for the development of affordable housing. In exchange, the developer would become eligible to receive density bonuses and other incentives. This legislation passed the Assembly, but the Senate has not yet taken action.

7. PUBLIC EMPLOYEES

   Coroner Education
   (A.687 Parment; Passed Assembly)
   
   Despite the complex nature of their work, State Law does not establish training requirements for coroners/medical examiners, resulting in varying degrees of training across the State. This legislation would authorize the Division of Criminal Justice, in consultation with the Department of Health, the State Police, the State Education Department and the New York State Association of County Coroners to establish medical/legal investigation training requirements for coroners, coroner’s deputies, medical examiners and deputy medical examiners. Such training would be required to be completed by persons holding such offices on or before January 1, 2007, and by persons taking any such office after the effective date of this act, prior to taking such office. This legislation passed the Assembly, but the Senate has not yet taken action.

   
   Residency Requirements
   
   Both the Public Officers and the Town Law currently require elected officials to maintain residency in the towns they are elected to serve; however, some localities have had difficulty finding eligible candidates for elected offices.

   
   Residency Requirements for the Village of Deposit
   (A.4454-B Crouch; Chapter 444 of the Laws of 2005)
   
   This legislation authorizes the clerk-treasurer, deputy clerk-treasurer and court clerk to reside outside the Village.

   
   Residency Requirements for the Town of Maine
   (A.6964 Finch; Chapter 98 of the Laws of 2005)
   
   This legislation authorizes the court clerk to reside outside the Town.

8. MUNICIPAL FINANCES

   Brownfield Remediation Tax Waiver
   (A.3109-A Sweeney; Chapter 221 of the Laws of 2005)
   (A.8910 Rules (Sweeney); Chapter 219 of the Laws of 2005)
   
   Almost every community in New York State is impacted by contaminated and abandoned properties known as brownfields. Left alone, brownfields are environmental and financial burdens on a community. However, after cleanup, these sites can again become useful properties that add to the economic vitality of a community.
   
   This legislation authorizes localities, following public notice, to waive interest penalties for properties subject to a valid brownfield site clean-up agreement. Only penalties and interest due prior to the execution of the agreement would be eligible, and if the property fails to receive a certification of completion pursuant to the Environmental Conservation Law, the interest and penalty waiver may be voided. By offering an additional clean-up incentive, this legislation will help promote environmental restoration and preservation, protection of public health, economic development, job creation and community revitalization throughout the State. Technical amendments were made to this legislation by (A. 8910) Chapter 219 of the Laws of 2005.

   
   Municipal Investments
   (A.3678-B DiNapoli; Chapter 545 of the Laws of 2005)
   
   This legislation will permit the State and New York City to invest up to $250 million in no-load money market mutual funds. The funds must be guaranteed by the United States or its agencies and be rated in the highest rating category by at least one nationally-recognized statistical rating organization. In addition, this legislation would permit banks and trust companies to offer a pool of securities as collateral instead of individual securities, as well as removing certain custodial transfer provisions and eliminating provisions prohibiting the commingling of collateral.

   
   Statutory Installment Bonds
   (A.7093-A Sweeney; Chapter 581 of the Laws of 2005)
   
   The Environmental Facilities Corporation (EFC) administers the State Clean Water and Drinking Water Revolving Funds. The Clean Water State Revolving Fund was established to provide financial assistance to municipalities and other recipients in acquiring, constructing and upgrading eligible water pollution control projects. The Drinking Water State Revolving Fund was established to provide financial assistance for acquiring, constructing and upgrading eligible water supply projects.
   
   This legislation, proposed by EFC, will exempt bonds issued to EFC from the $1 million principal cap previously in place for all bonds issued to entities other than the United States of America or one of its agencies. Prior to the passage of this legislation, the Local Finance Law required borrowers receiving EFC loans to issue serial bonds for each maturity. This meant that for a twenty-year loan, EFC would have received 20 separate bonds from the borrower. This legislation will permit local governments and public benefit corporations to issue a single installment bond in any amount. The issuance of a single bond will help streamline EFC’s loan administration and help ease the administrative burden on local governments. This authorization will expire on September 30, 2008.
   

   
   Environmental Facilities Corporation Installment Bonds
   (A.7094-A Sweeney; Chapter 628 of the Laws of 2005)
   
   Section 169.00 of the Local Finance Law permits municipalities selling bonds or notes to the Environmental Facilities Corporation (EFC), pursuant to the Clean Water State Revolving Loan Fund or the Drinking Water Revolving Loan Fund, to issue a single bond or note for the maximum principal amount of the loan. The bond or note specifies that the municipality is only obligated to repay amounts that are actually advanced under such instrument. Advances of moneys under the bond or note are evidenced by endorsements on a "grid" or table attached to the bond or note. This authorization was set to expire on September 30, 2005.
   
   This bill would extend for three years, until September 30, 2008, the authorization for municipalities to issue bonds or notes evidencing installment loans to the EFC.

   
   Environmental Facilities Corporation Refunding Bonds
   (A.7095-A Sweeney; Chapter 629 of the Laws of 2005)
   
   Prior to the passage of this legislation, section 90 of the Local Finance Law required municipalities refunding notes or bonds within five years of issuance to show the refunding would result in savings. This requirement was in place even though the interest rate for hardship municipalities is zero. As a result, municipalities could not refinance because the zero percent rate meant that they could never demonstrate a present day savings.
   
   This legislation will permit municipalities with hardship State Revolving Fund financing, who are seeking to extend the term of their zero percent loans through refinancing and whose bonds or notes are within five years of issuance, to sell their refunding bonds to EFC without requiring a showing of savings. This authorization will expire on September 30, 2008.

   
   Post Employment Benefits
   (A.3108 Sweeney; Passed Assembly)
   
   In addition to pensions, many local governments provide retirees with health care benefits. Though post employment health care benefits are provided after an employee retires, they constitute compensation for employee services. Currently, financial statements do not include the financial effect of post employment health care benefits until those benefits are paid. The Governmental Accounting Standards Board (GASB) establishes standards of financial accounting and reporting for state and local governments. In June 2004, GASB issued Statement No. 45 which established requirements for the accounting and financial reporting of post employment benefits other than pensions. Statement 45 requires financial statements to include the cost of benefits in periods when the employees are actually working for their employer.
   
   This legislation will permit municipalities and school districts to meet the new GASB requirements by authorizing them to account for post employment benefits in an Employee Benefit Accrued Liability Reserve Fund.

9. MUNICIPAL CORPORATIONS

   Municipal Theme Districts
   (A.6722 Bradley; Chapter 206 of the Laws of 2005)
   
   Municipalities across the country have created theme districts to coordinate areas of a community into common areas for art, entertainment, education, or culture. These districts are intended to help develop the economy, tourism, culture and quality of life in the community.
   
   This legislation establishes the parameters for municipalities that opt to establish theme districts, including the establishment of a theme district development plan and creation of a seven-member planning board.

   
   Improvement District Commissioner Salaries
   (A.7892 DiNapoli; Chapter 344 of the Laws of 2005)
   
   Currently, town boards have the authority to pay improvement district commissioners an amount not to exceed $80 per day for each day spent in the service of the district. This amount has not been increased since 1994. This legislation would increase to $100 the amount commissioners can be paid.

   
   Wild Animal Notification
   (A.8443 Tokasz; Chapter 538 of the Laws of 2005)
   
   In 2002, the Legislature passed legislation requiring individuals to notify municipal clerks of the presence of wild animals and dangerous dogs. This legislation clarifies that the notification provision does not apply to federally licensed exhibitors.

   
   Audit Responses
   (A.3112 Sweeney; Passed Assembly)
   
   Audit reports and management letters are important tools in the efficient management of local governments. They are utilized most effectively, however, when local officials promptly focus on audit findings and recommendations and address any deficiencies in an effective manner. Written, public responses also help foster greater accountability to the taxpayers of the local governments.
   
   This legislation would require municipalities, industrial development agencies, and special districts to respond in writing to audits performed by the Office of the State Comptroller, or external audits performed by independent public accountants. This legislation passed the Assembly, but the Senate did not take action.

   
   Energy Purchases
   (A.6571 Galef; Passed Assembly)
   
   Municipal purchases above a certain dollar threshold are subject to competitive bidding and purchases are made from the lowest-priced bidder; however, Section 104-A of the General Municipal Law permits items made of recycled products to be purchased even if they are not the lowest price.
   
   This legislation would establish a provision similar to 104-A of the General Municipal Law and permit municipalities to purchase renewable energy resources provided that they are within 15 percent of the cost of a comparable non-renewable energy product. This legislation passed the Assembly, but the Senate did not take action.

10. DISABILITY COVERAGE

    Disability Coverage for Bridge and Tunnel Officers
    (A.6060-A Lentol; Veto 11 of 2005)
    
    This legislation would allow bridge and tunnel officers, who become disabled due to a disease of the lungs, to collect a pension equal to ¾ of his or her final salary. This provision would only apply in cases where officers meet the following criteria: completion of at least five years of service; civil service selection; and, successful completion of a pre-employment physical. This legislation passed the Legislature but was vetoed by the Governor.

    
    Disability Coverage for Bi-State Commission or Authority Police
    (A.7609 Abbate; Veto 28 of 2005)
    
    This legislation would add bi-state commission and authority police officers to the list of law enforcement personnel eligible to receive additional disability coverage for injuries received in the line of duty, ensuring police officers employed by these agencies would receive the same disability benefits as other law enforcement officers. This legislation passed the Legislature but was vetoed by the Governor.

    
    Disability Coverage for Sanitation Workers
    (A.8372 Abbate; Chapter 383 of the Laws of 2005)
    
    This legislation provides a technical amendment to legislation passed last year that established a presumption that any heart disease, which leads to the disability or death of a paid member of a sanitation department, resulted from sanitation activities, unless proved otherwise. This provision would apply only in cases where workers were drawn from competitive civil service lists and successfully passed a pre-employment physical.

    
    Disability Coverage for Niagara Frontier Transit Police
    (A.842 Tokasz; Passed Assembly)
    
    This legislation would add the Niagara Frontier Transportation Authority’s (NFTA) police officers to the list of law enforcement personnel eligible to receive additional disability coverage for injuries received in the line of duty, ensuring that NFTA police officers would receive the same disability benefits as other law enforcement officers. This legislation passed the Assembly, but the Senate has not yet taken action.

    
    Disability Coverage for County Probation Officers
    (A.980 Weisenberg; Passed Assembly)
    
    This legislation would authorize counties to add probation officers to the list of law enforcement personnel eligible to receive additional disability coverage for injuries received in the line of duty, ensuring that county probation officers would receive the same disability benefits as other law enforcement officers. This legislation passed the Assembly, but the Senate has not yet taken action.

11. DEBT INSTRUMENTS

    Municipal Demolition of Privately-Owned Buildings
    (A.876 Tokasz; Chapter 78 of the Laws of 2005)
    
    At present, municipalities are restricted from issuing bonds to pay for the emergency demolitions of private buildings. In most cases however, municipalities often have little or no available funds for demolition activity in their budgets, instead, other funding sources must be expended.
    
    Although municipalities often recover the costs of such demolitions from the property owner, or the property owner’s insurance company, the municipality may be required in many cases to provide the initial costs for these demolitions at taxpayers’ expense. The issuance of bonds will help municipalities avoid drastic financial challenges and allow costs to be phased in over time.

    
    Erie County Private Bond Sales
    (A.2443 Schimminger; Chapter 113 of the Laws of 2005)
    
    This chapter extends the authority for the underwriting or sale of Erie County bonds or notes at private sale to include bonds and notes issued on or before June 30, 2006. This legislation provides Erie County with additional fiscal flexibility by allowing them to determine the timing of their bond sales.

    
    Buffalo Private Bond Sales
    (A.2442 Schimminger; Chapter 69 of the Laws of 2005)
    
    This chapter extends the authority for the City of Buffalo to underwrite or sell bonds or notes at private sale to include bonds and notes issued on or before June 30, 2006. This legislation provides Buffalo with additional fiscal flexibility by allowing them to determine the timing of their bond sales.

    
    Yonkers Private Bond Sales
    (A.4687 Pretlow; Chapter 118 of the Laws of 2005)
    
    This chapter extends the authority for the City of Yonkers to underwrite or sell bonds or notes at private sale to include bonds and notes issued on or before June 30, 2006. This legislation provides Yonkers with additional fiscal flexibility by allowing them to determine the timing of their bond sales.

    
    Schenectady County Bond Sale
    (A.7056-A Tonko; Chapter 533 of the Laws of 2005)
    
    A recently conducted audit of Schenectady County, by the State Department of Taxation and Finance, determined that an overpayment of at least $5.4 million in sales and use taxes occurred between 1996 and 2000. It also appears that the error may have been ongoing and the total amount owed could be as much as $18 million. The County must repay the overpayment.
    
    This legislation permits the County to issue serial bonds to finance the cost of repayment, allowing the costs to be smoothed out over time in order to minimize the impact on County taxpayers.

12. ELECTION REFORMS

    Absentee Ballots for Fire District Elections
    (A.6572 Galef; Passed Assembly)
    
    Currently, fire district commissioners must adopt a resolution prior to providing absentee ballots in fire district elections. This legislation would bring the election provisions of fire districts into compliance with the provisions of other local elections by requiring absentee ballots to be available for all fire district elections. In addition, this legislation would streamline the process for the completion and submission of absentee ballots. This legislation passed the Assembly, but the Senate has not yet taken action.

    
    Ward System Elections
    (A.2681 McEneny; Passed Assembly)
    
    Historically, the phrase "ward system" has been very closely associated with cities. Since towns are governed by town boards made up of elected council members, it would be more consistent to call the system a council district system instead of a ward system.
    
    This legislation amends the Town Law to replace the phrase "ward system" with the phrase "council district system." This legislation passed the Assembly, but the Senate has not yet taken action.

13. MUNICIPAL ZONING

    Notice to Adjacent Municipalities
    (A.6219-B Koon; Chapter 658 of the Laws of 2005)
    
    This bill requires municipalities to give notice to neighboring municipalities when they hold hearings regarding certain planning and zoning actions that would impact property within 500 feet of an adjacent municipality. These actions include the issuance of a special use permit, as well as site plan and subdivision reviews.

    
    Referrals to County Planning Boards
    (A.8409 Sweeney; Passed Assembly)
    
    General Municipal Law §239-m requires cities, towns and villages to refer certain proposed land use actions, including "adoption or amendment of a zoning ordinance or local law" to county planning agencies for review; however, there has been some confusion as to what actions should be referred. This legislation will clarify that enactment and amendment of land use laws and ordinances, including subdivision regulations, site plan review laws and communication tower ordinances, are required to be referred to county planning boards. This legislation passed the Assembly but the Senate did not take action.

    
    Community Preservation Funds
    (A.6450-A DiNapoli; Passed Assembly)
    
    Undeveloped and agricultural lands in New York are disappearing at a rapid rate. In an effort to conserve these lands, communities across the State are exploring a range of options from land use planning activities to the outright purchase of property. In conserving land, communities are pursuing different objectives such as providing parkland, safeguarding drinking water, preserving farmland, protecting habitat and preserving spectacular scenic views; however, all of these activities require financial resources.
    
    This legislation would permit towns and cities, following a referendum, to impose a tax on real estate transfers with the money used to create community preservation funds. This legislation passed the Assembly, but the Senate did not take action.

14. LAND TRANSFER AUTHORIZATIONS

    Village of Scarsdale Parking Facility Transfer
    (A.8673 Paulin; Chapter 464 of the Laws of 2005)
    
    Various opinions issued by the Office of the State Comptroller, as well as court dicta, have indicated that parking facilities, like parkland, are held in trust and any alienation of that trust requires a special act of the State Legislature.
    
    This legislation permits the Village of Scarsdale to discontinue the use of a public parking facility, provided that the Village retains the amount of parking currently needed and only discontinues the excess.

1. FIRST RESPONDERS
   
   

   Increased Death Benefits For Volunteers
   (A.7688 Sweeney; Chapter 212 of the Laws of 2005)
   
   Volunteer ambulance workers and firefighters provide an important service to the people of New York State, and unfortunately, the provision of that service brings with it an inherent danger. The tragic events of September 11th have brought even closer to home the important role of emergency service providers and the dangers involved with their work.
   
   This legislation provides a cost of living adjustment, based on the increase in the consumer price index since benefits were last increased in 1998, to volunteer firefighter and ambulance worker death benefits.

   
   Increases in Special Accidental Death Benefits for Police and Fire Personnel
   (A.5217 Markey; Chapter 48 of the Laws of 2005)
   
   In 1978, the Legislature passed into law a cost of living increase and a one-year escalation for all New York State widows and children of municipal police officers and firefighters killed in the line of duty. The intent of that law was to increase benefits to reflect actual costs of living and prevent loss of income due to inflation; however, the law did not provide any cost of living increase after July 1, 1979. Since that date, the cost of living has increased well over three percent each year.
   
   This legislation will increase certain special accidental death benefits for surviving spouses and children of municipal police and fire personnel by three percent.

   
   Task Force on Volunteer Health Insurance Coverage
   (A.7598 Sweeney; Passed Assembly)
   (A.8789 Sweeney; Passed Assembly)
   
   The possibility of offering health insurance to volunteer firefighters and ambulance workers as a recruitment and retention incentive has been suggested as a way to reverse the decline in volunteerism. Last year, the Temporary Task Force on Volunteer Firefighter and Ambulance Recruitment and Retention was created to study issues related to the feasibility of providing volunteer firefighter and ambulance workers with health insurance. For months, the Task Force was unable to meet since all of its members had not been appointed. Assembly bill 7598 was introduced to allow the Task Force to begin its work once a majority of the members were appointed. The mere introduction of the bill encouraged the remaining appointments to be made and the Task Force began meeting in June.
   
   To ensure the Task Force had enough time to complete its work, A.8789 would have extended the timeframe for completion of the final report until January 1, 2007. Both of these measures passed the Assembly but the Senate did not take action.

2. VOLUNTEER FIREFIGHTERS

   Extension of Heart Disease Disability Benefits
   (A.567-A Magee; Chapter 138 of the Laws of 2005)
   
   In 1977, the Legislature found that volunteer firefighters often suffered injuries or death resulting from heart attacks suffered in the line of duty. The Legislature also found that claims of injuries from heart attacks were often subjected to lengthy delays. As a result, the Legislature added a new section 61 to the Volunteer Firefighters’ Benefit Law establishing procedures for the handling of such claims.
   
   Prior to the passage of this legislation, the provision had been set to expire on July 1, 2005. In the past, these provisions sunset every two years; however, this legislation extends the provisions for five years, or until June 30, 2010.

   
   Volunteer Firefighting by Military Personnel
   (A.7599 Sweeney; Chapter 341 of the Laws of 2005)
   
   Currently, volunteer firefighters are required to be placed on a leave of absence upon entering active duty military service in a time of war. During such service, these individuals are prohibited from performing firefighting duties. The prohibition includes times when they are home on leave. This legislation removes the leave of absence prohibition and permits individuals to perform firefighting duties while home on leave.

   
   Defense and Indemnification
   (A.1600 Sweeney; Passed Assembly)
   
   Volunteer firefighters generously perform an essential function without compensation; however, the fear of personal financial liability discourages some people from becoming and continuing to serve as volunteer firefighters. Their status as volunteers has led to questions about the ability of public entities to pay for legal costs and any resulting judgments, a process known as defense and indemnification.
   
   This legislation would require municipalities and fire districts to provide defense and indemnification for actions taken by the volunteer firefighter, provided that the firefighter meets the municipality's training standards and the actions did not involve willful negligence or malfeasance. This legislation has passed the Assembly, but the Senate has not yet taken action.

   
   Long Distance Learning Availability
   (A.5414 Ramos; Passed Assembly)
   
   Since September 11, 2001, the increased responsibilities of firefighters have forced them to perform a growing number of tasks within a limited amount of time. At a hearing held last year, firefighters frequently cited concerns regarding the availability and proximity of required training and indicated certain training demands are actually a deterrent to recruitment and retention. Technology provides new opportunities for training that can reduce the time burden placed upon firefighters.
   
   This legislation would require the State Office of Fire Prevention to make firefighting training available by video or computer to the maximum extent practical. This legislation has passed the Assembly, but the Senate has not yet taken action.

   
   Free Thruway Access for Emergency Vehicles
   (A.1994 DelMonte; Passed Assembly)
   
   When responding to an emergency, time is of the essence. In some areas of the State, the Thruway provides the fastest and most direct access to the scene of an emergency. This legislation would require the Thruway Authority to develop a permit process or provide refunds for ambulances and fire trucks responding to an emergency. This legislation has passed the Assembly, but the Senate has not yet taken action.

   
   Fire Hydrant Inspection
   (A.3101 Pretlow; Passed Assembly)
   
   Non-working hydrants pose a major hazard to firefighters. In urban areas, the problem of non-working hydrants also exacerbates parking problems. This legislation would require municipalities to inspect fire hydrants to ensure that they are in working order and remove or replace non-working hydrants. In cases where fire districts are responsible for hydrant maintenance, they would be required to conduct the inspections and notify the municipality. This legislation passed the Assembly, but the Senate has not yet taken action.

The issue of parkland alienation, or the conversion of parkland for other purposes, has been a great concern to the Committee for some time. Case law has established that any use of public parkland for non-parkland purposes must be authorized by the New York State Legislature.

As part of this Committee’s on-going effort to protect the public trust as it relates to the use of parklands, and in keeping with the Assembly’s policy of preserving open spaces, every attempt was made to ensure that the proposed alienation of parklands complied with alienation guidelines and adhered to the long standing policy, prior to passage out of Committee.

Committee guidelines for authorizing parkland alienation include the verification of the number of acres proposed for alienation and a requirement that lands be sold at fair market value, with the proceeds from the sale of parkland dedicated for the purchase of replacement parkland of equal or greater fair market value or for capital improvement of existing parkland. The legislation also includes a legal description of the lands being alienated, as well as language detailing the number of acres contained within the lands being alienated or dedicated. Finally, the Committee requires a home rule message from the municipality requesting alienation prior to acting on any parkland legislation.

The following parkland alienation bills have been signed into law.

Village of Walden Parkland
(A.2645 Calhoun; Chapter 317 of the Laws of 2005)

This chapter authorizes the Village of Walden, Orange County, to discontinue the use of certain municipal parkland. In exchange, the Village must dedicate the fair market value of the property being alienated for the acquisition of new parkland or the improvement of existing park facilities.




Rockland County Parkland
(A.5320 Rabbitt; Chapter 599 of the Laws of 2005)

This chapter authorizes Rockland County to grant an easement to Rockland County Sewer District Number One, for the installation of an underground sewer line. In exchange, the County must dedicate the fair market value of the easement for the acquisition of new parkland or the improvement of existing park facilities. Following the completion of the installation, the District will be required to restore the surface of the parkland so that it may continue to be used for park purposes.




Village of Victor Parkland
(A.5773 Errigo; Chapter 546 of the Laws of 2005)

This chapter authorizes the Village of Victor, Ontario County, to discontinue the use of certain municipal parkland. The Village is required to dedicate the fair market value of the property being alienated for the acquisition of new parkland or the improvement of existing park facilities.




Schuyler County Parkland
(A.6556-A O’Mara; Chapter 296 of the Laws of 2005)

This chapter authorizes Schuyler County to sell certain municipal parkland to the Krog Corporation for the purpose of constructing and operating a hotel and convention center. In exchange, Krog Corporation will provide the county with additional land to be used as parkland. If the land to be acquired is not greater or equal in value to the land alienated, the County will be required to use the fair market value of the lands alienated for the purchase of additional parkland or for improvements to existing parkland.




Monroe County Parkland
(A.6626 John; Chapter 231 of the Laws of 2005)

This chapter authorizes Monroe County to discontinue the use of certain municipal parkland. In exchange, the County must dedicate the fair market value of the property being alienated for the acquisition of new parkland or the improvement of existing park facilities.




Monroe County Parkland
(A.7073 John; Chapter 614 of the Laws of 2005)

This chapter authorizes Monroe County to grant an easement to the City of Rochester for the installation of an underground water line. In exchange, the County must dedicate the fair market value of the easement for the acquisition of new parkland or the improvement of existing park facilities. Following the completion of the installation, the City will be required to restore the surface of the parkland so that it may continue to be used for park purposes.




Town of Hempstead Parkland PILOTS
(A.7090 Weisenberg; Chapter 120 of the Laws of 2005)

This chapter extends, from June 30, 2005, until June 30, 2010, the expiration of provisions authorizing the town of Hempstead to make payments in lieu of taxes on certain parkland in the Lido Beach-Point Lookout area.




Village of East Hills Parkland
(A.7492-A Lavine; Chapter 381 of the Laws of 2005)

This chapter authorizes the Village of East Hills, Nassau County, to discontinue the use of certain municipal parkland. The Village is required to dedicate the fair market value of the property being alienated for the acquisition of new parkland or the improvement of existing park facilities.




Village of Hamburg Parkland
(A.7687 Quinn; Chapter 229 of the Laws of 2005)

This chapter validates certain actions taken by the Village of Hamburg, Erie County, regarding the discontinuance of certain municipal parkland. The Village is required to dedicate the fair market value of the property illegally being alienated for the acquisition of new parkland or the improvement of existing park facilities.




Village of Port Chester Parkland
(A.7923 Latimer; Chapter 458 of the Laws of 2005)

This chapter authorizes the Village of Port Chester, Westchester County, to discontinue the use of certain municipal parkland. The Village is required to dedicate the fair market value of the property being alienated for the acquisition of new parkland or the improvement of existing park facilities




Village of Vernon Parkland
(A.7931 Magee; Chapter 459 of the Laws of 2005)

This chapter authorizes the Village of Vernon, Oneida County, to discontinue the use of certain municipal parkland. The Village is required to dedicate the fair market value of the property being alienated for the acquisition of new parkland or the improvement of existing park facilities.




Nassau County Parkland
(A.8175 Weisenberg; Chapter 130 of the Laws of 2005)

This chapter extends, until 2010, the authorization permitting Nassau County to provide payments in lieu of taxes to taxing jurisdictions in the Lido Beach area.

The Committee held six public hearings in 2005. A summary of those hearings follows.

1. INDUSTRIAL DEVELOPMENT AGENCIES

   On January 18th of this year the Committee held a hearing in Albany to solicit input on the role of Industrial Development Agencies in New York State.

   Industrial Development Agencies (IDAs) have been created by the State Legislature to promote the economic welfare and prosperity of the State’s inhabitants and to actively attract, encourage and develop economically sound commerce and industry for the purpose of preventing unemployment and economic deterioration. Currently, there are 116 county and municipal-level IDAs.

   Several provisions of the IDA statute were set to expire on July 1st of this year including: the authorization for IDAs to finance civic facility and continuing care retirement projects; certain tax policies and restrictions on the use of agency funds. The sunset of these provisions provides an opportunity to examine the current practices of IDAs, including the need for any changes or reforms.

   Testimony at the hearing involved a range of subjects including civic facility projects, reforms and the extension of existing authorization.

2. PROCUREMENT

   On September 27, 2005, the Committee, in conjunction with the Assembly Standing Committees on Governmental Operations; Small Business; Environmental Conservation; Oversight, Analysis and Investigation; as well as the Assembly Commission on Government Administration and the Assembly Subcommittee on Oversight of the Department of Environmental Conservation, held a hearing to examine issues related to the Procurement Stewardship Act and procurement issues.

   The Procurement Stewardship Act (State Finance Law Article 11) was enacted in order to consolidate, codify and update the procurement laws of New York State. The enacting legislation contained a sunset provision and was renewed in 2000 and included substantial changes.

   Testimony at the hearing involved a range of subjects including State procurement provisions, local government purchasing and potential reforms.

3. EMINENT DOMAIN

   On November 1st and 4th of this year, the Committee, in conjunction with the Assembly Standing Committees on Judiciary; Corporations, Authorities and Commissions; and Governmental Operations, held hearings in Albany and New York City, to examine issues related to eminent domain.

   The central purpose of the hearing was to examine the various issues raised by the recent decision of the United States Supreme Court in Kelo v. New London and, whether, in light of that decision, legislation should be enacted in New York to further regulate the use of the power of eminent domain. The Kelo decision reaffirmed the power of local governments to seize private property for economic development purposes and approved the longstanding role of State Legislatures to restrict or expand the authority.

   The Committees received testimony on issues surrounding the sovereign exercise of eminent domain, including applicable constitutional standards and the role of local government approval when eminent domain is used by public authorities or public benefit corporations. In addition, testimony also addressed the use of eminent domain for economic development purposes, including the use of comprehensive development plans and fiscal impact statements. Issues significant to communities, such as public notice and due process protections, as well as compensation to adversely affected parties were also discussed.

4. BUDGET IMPLEMENTATION

   On December 5, 2005, the Committee, in conjunction with the Assembly Standing Committee on Governmental Operations, held a hearing in Albany to examine the impact of the 2005-2006 Budget on Department of State programs, including implementation and administration. The Committees examined the newly-created Shared Municipal Services Incentive program and the Quality Communities Incentive program, as well as the Local Enhanced Wireless 911 program and Office of Fire Prevention and Control programs.

   Individuals from the Department of State, the Office of Fire Prevention and Control, the Firemen’s Association of the State of New York, the New York State Association of Fire Chiefs and the Association of Fire Districts of the State of New York provided testimony.

5. DISASTER PREPAREDNESS

   On December 13, 2005, the Committee, in conjunction with the Assembly Standing Committee on Governmental Operations, held a hearing on Long Island to examine issues related to the readiness of local governments to respond to disasters.

   Recent events have led many municipalities to re-examine their readiness for natural and man-made disasters. This review is taking place at every level of government as it becomes increasingly clear that plans are essential to ensure a well-coordinated, efficient response. This hearing, the latest in a series of hearings held by the Assembly on emergency preparedness, was held to examine issues related to the disaster planning efforts of local governments, including intermunicipal and State cooperation.

The Assembly Local Governments Committee will continue its in-depth review of how New York State provides emergency services to all of its residents, in particular the provision of police, fire and ambulance services. While both professional and volunteer emergency service providers as a whole provide an exceptional level of service across the State, the level of support, both financial and technical, varies widely across New York State depending on the resources available to a particular area.

The expiration of certain provisions related to Industrial Development Agencies (IDAs), including the authorization of IDAs to finance civic facility and continuing care retirement projects, as well as certain tax policies and restrictions on the use of agency funds, will provide the Committee with the opportunity to explore issues related to the role of IDAs.

The Committee will also continue its review of 911-related issues at both the State and local level. The Committee remains committed to ensuring that any recommendations and proposed legislation reflect the rapidly changing technical means of providing emergency services in both rural and urban New York, as well as the financial realities of both residents and emergency service providers.

The Committee will continue to advocate for the equitable distribution of local government aid. In particular, it will continue to support the adoption of equitable new local government aid programs to provide both a stable and predictable revenue stream for local governments.

To Floor

To Ways and Means

To Codes

To Rules

To Judiciary

APPENDIX B

Chapter Laws of 2005