S T A T E   O F   N E W   Y O R K
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                                  3656

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              March 1, 2011
                               ___________

Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations

AN  ACT  authorizing  the  establishment  of solar or wind or farm waste
  energy system tax stabilization funds

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative findings and declaration. The legislature here-
by  finds  private  development  and  ownership of solar or wind or farm
waste energy systems will generate significant, new tax revenue for  the
municipalities  where  a  solar  or  wind or farm waste energy system is
located. Therefore, in order to provide tax stability  to  the  involved
municipalities, the purpose of this legislation is to empower such muni-
cipalities  to  create  solar  or  wind  or farm waste energy system tax
stabilization reserve funds.
  S 2. (1) Any municipal corporation in which a solar or  wind  or  farm
waste  energy system is located may create a solar or wind or farm waste
energy system tax stabilization reserve fund.
  (2) Definitions. As used in this section:
  (a) "Eligible portion of the annual budget" shall mean:
  (i) in the case of a county, city, village, school or  fire  district,
the general fund portion of the annual budget;
  (ii)  in  the  case of a town, the town-wide general fund, and highway
fund portions of the annual budget; and
  (iii) in the case of the part of a  town  outside  any  villages,  the
general  fund  and  highway  fund portions of the annual budget for such
part of the town.
  (b) "Municipal  corporation"  shall  mean  a  county,  city,  town  or
village, school district, fire district, or district corporation.
  (c) "Solar or wind or farm waste energy system" shall be defined as in
section 487 of the real property tax law and shall include the land upon

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07016-01-1
              

S. 3656                             2

which  the system is located, any equipment used in such generation, and
equipment leading from the system to the interconnection with the trans-
mission system, but shall not include any equipment in the  transmission
system.
  (d)  "Chief  fiscal  officer"  shall  mean  a  chief fiscal officer as
defined in paragraph 5 of section 2.00 of the local finance law.
  (3) The finance board, as defined in paragraph 4 of  section  2.00  of
the local finance law, of any municipal corporation, in municipal corpo-
rations  in which at least one solar or wind or farm waste energy system
is located, may establish a reserve fund to be known  as  the  solar  or
wind or farm waste energy system tax stabilization reserve fund.
  (4)  There  may be paid into such fund such amounts as may be provided
by budgetary appropriation.
  (5) The moneys in such fund shall be  deposited  and  secured  in  the
manner  provided by section 10 of the general municipal law. The finance
board, or the chief fiscal officer of such municipal corporation, if the
finance board shall delegate such duty thereto, may invest the moneys in
such fund in the manner provided by section 11 of the general  municipal
law. Any interest earned or capital gain realized on the money so depos-
ited or invested shall accrue to and become part of such fund.
  (6)  The chief fiscal officer shall account for this fund separate and
apart from all other funds of the municipal corporation. Such accounting
shall show: the source, date and amount of each sum paid into the  fund;
the interest earned by such fund; capital gains or losses resulting from
the  sale  of investments of this fund; the order, purpose thereof, date
and amount of each payment from this fund; the assets of the fund, indi-
cating cash balance and a schedule  of  investments.  The  chief  fiscal
officer, within 60 days of the end of each fiscal year, shall furnish to
the  finance  board  and  the state comptroller a detailed report of the
operation and condition of the fund during  the  preceding  fiscal  year
which  shall  include  a  statement of receipts and disbursements, and a
statement of the balance of the fund as of the last day of such  preced-
ing  fiscal year and such other dates as may be specified by the finance
board.
  (7) An expenditure may be made from this fund:
  (a) to lessen or prevent any projected increase in the amount  of  the
real  property  tax  levy  needed to finance the eligible portion of the
annual budget for the next succeeding fiscal year as  disclosed  in  the
annual school budget that is presented to the voters for approval; and
  (b)  to  lessen or prevent any projected increase in the amount of the
real property tax levy needed to finance the  eligible  portion  of  the
annual budget for municipal corporations other than school districts for
the next succeeding fiscal year.
  (8)  The  members of the finance board are hereby declared trustees of
the moneys in the solar or wind or farm waste energy system tax stabili-
zation reserve fund and shall be subject to all duties and  responsibil-
ities  imposed  by law on trustees, and such duties and responsibilities
may be enforced by the municipal corporation or by  any  board,  commis-
sion,  agency,  officer  or  taxpayer  thereof. No member of the finance
board shall:
  (a) authorize a withdrawal from this fund for any  purpose  except  as
provided in this act; or
  (b)  expend  any  moneys  withdrawn from this fund for a purpose other
than as provided in this act.
  Any member of the finance board who willfully and  knowingly  violates
the provision of this subdivision shall be guilty of a misdemeanor.

S. 3656                             3

  (9)  If,  after  the  establishment of such fund, the municipal corpo-
ration determines that such fund is no longer needed, the moneys remain-
ing in such fund may be transferred to any other reserve fund authorized
by section 3651 of the education law or the general fund of the  munici-
pal  corporation  that  is  comprised of moneys which were raised on the
same tax base as the moneys in the reserve fund established  under  this
section.  Prior to discontinuance of such fund, the chief fiscal officer
of such municipal corporation shall certify to the finance board thereof
that such funds are no longer needed.
  S 3. This act shall take effect immediately.