BILL NUMBER: S8730
SPONSOR: HARCKHAM
 
TITLE OF BILL:
An act to amend the public authorities law, the public health law, the
New York State water infrastructure improvement act of 2017, and the
real property tax law, in relation to providing access to water quality
infrastructure improvement funding to water utilities
 
PURPOSE:
To provide access to water quality infrastructure improvement funding to
water utilities
 
SUMMARY OF PROVISIONS:
Sections 1 and 2 would clarify that a water utility is eligible for
financing through the Drinking Water State Revolving Fund, so long as
the utility project has a clear and definite public purpose which bene-
fits the customers of the water system.
Section 3 would provide that a water utility is eligible for grant fund-
ing through the Water Infrastructure Improvement Act of 2017, so long as
the utility project has a clear and definite public purpose which bene-
fits the customers of the water system.
Section 4 would provide that water utility infrastructure improvements
funded or financed through the Water Infrastructure Improvement Act of
2017 or the Drinking Water State Revolving Fund shall be exempt from
special franchise taxation, provided that any tax relief realized
through such exemption shall be used to reduce current water rates and
offset future water rate increases
Section 5 would provide for an immediate effective date.
 
JUSTIFICATION:
Aging water infrastructure affects all communities in New York, and
substantial investments are needed to maintain water quality, reliabil-
ity and resiliency. However, communities that are served by private
water utilities do not currently have the same access to State and
Federal resources to make needed water infrastructure improvements, as
is currently available to municipal water systems. As a result, custom-
ers of private water systems are left to pay for the costs for infras-
tructure improvements over time through the monthly rates they pay.
Making matters worse, the customers of these private water systems must
then also pay higher special franchise taxes due to the higher assessed
value of the improved infrastructure.
This bill would rectify this discrepancy between municipal and private
water systems, by providing private water utilities the same opportunity
to competitively apply for all available State and Federal water quality
improvement funding on behalf of their customers. In addition, the bill
would also exempt the infrastructure improvements from special franchise
taxation, so long as any tax relief realized through such exemption is
used to reduce current water rates and offset future water rate
increases.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
None to the state.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S8730: 1281 public authorities law, 1281(34) public authorities law, 1160 public health law, 1160(10) public health law, 102 real property tax law, 102(17) real property tax law