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In the News – New York State

Tax Exemptions: One Man’s Fiscal Picture

Complication is Another’s Deal Maker

Depending upon which press conference you attended this week in New York, tax exemptions

can either cloud the financial pictures of local governments or be the carrot for economic

revitalization.

In Syracuse, State Comptroller Thomas DiNapoli

this week released a report indicating that more than 25% of

real property value in New York is exempt from county,

city, and town property taxes, complicating local

government finances. The total value of these exempt

properties is $680 billion.

“In an era of limited resources, the impact of

property tax exemptions complicates the financial picture of

our local governments,” said Comptroller DiNapoli. “In

localities with higher exemptions, taxable property owners

are often carrying a much higher burden. Local leaders will

need to continue to find creative ways to offset these

exemptions and must carefully weigh any decision to offer

new exemptions. Syracuse is attempting to tackle this

challenge head on and others can learn from its example."

The Comptroller’s report followed Governor Andrew Cuomo’s launch of START-UP NY, an

initiative that creates tax-free zones on or near college campuses for start-up businesses and

companies relocating from other states.

Speaking Tuesday at an event attended by more than 300 international and domestic business,

high-tech industry, academic and community leaders in New York City, Governor Cuomo asserted,

"in a tax-free environment, no one can match what New York has to offer."

This Week in New York Covering New York State and City Government

A Publication of Pitta Bishop Del Giorno & Giblin LLC

October 25, 2013 Edition

This Week In New York/Page 2

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“Hundreds of business leaders and CEOs from

around the globe have come together for the official

launch of START-UP NY to take advantage of the most

ambitious economic development program in New York

State’s recent history,” Governor Cuomo said. “…

Businesses that are looking to startup or expand, and

most importantly create jobs, should look no further. We

are leveraging our world-class SUNY system and

prestigious private universities to partner with new

businesses, providing direct access to advanced research,

development resources, experts in high-tech and other industries and all with zero taxes for ten whole

years. With an opportunity like that, it’s no wonder that companies are lining up for the launch of

START-UP NY.”

Meanwhile Comptroller DiNapoli detailed the State’s current tax exemptions which range

from less than 10 percent in several municipalities to more than 60 percent in others. He found that

current exemptions generally fall into several categories:

Government-owned property (federal, state, local and foreign governments) accounts for 41%,

or $343 billion, of the total value of exempt property in the state.

Residential property exemptions are the largest tax exemption in the state (28 percent of total

exemptions valued at $224 billion), but the majority of this total includes the state’s School

Tax Relief (STAR) program, which exempts a portion of school taxes on a primary residence

and puts no direct additional burden on taxable property.

Non-profit organizations, which include churches, hospitals and universities, total 14% ($112

billion) of New York’s exempted property value.

Industrial and commercial exemptions, which includes public authority property and

exemptions granted by local Industrial Development Agencies, accounts for 9% ($76 billion)

of all exempt value.

Agriculture, forest property, public subsidized housing and other exemptions together account

for 9% of all exempt value ($73 billion).

Syracuse Mayor Stephanie Miner explained the difficulties surrounding the tax exemptions

and the need to find a means to make up for lost revenue.

“Property which cannot be taxed is a major driver of the current fiscal crisis facing our cities,”

said Syracuse Mayor Stephanie A. Miner. “This is not an isolated problem and represents a major

challenge as we deal with the changing economic model of cities. Our nonprofits demand and deserve

top-quality public services, such as those provided by police, fire, and DPW, but do not contribute to

their high cost. This report by Comptroller DiNapoli helps us better understand where we are today

and how we can take action to deal with our changing financial landscape.”

START-UP NY Launch in NYC

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To offset these tax exemptions, local governments have taken a number of steps to generate

revenue from exempt property owners, according to the Comptroller. This includes charging fees for

services, developing PILOT (payments in lieu of taxes) arrangements and reaching voluntary

payment arrangements with non-profit groups.

For example, in 2012, 51% of the property value (nearly $5 billion) in the City of Syracuse was

tax-exempt. To help make up for the lost revenue, the city has reached service agreements with

Syracuse University and two local hospitals.

New York State Enacts Uniform

Guardianship Rules

New York State this week adopted uniform standards for out-of-state legal guardianship of the

elderly, as Governor Andrew Cuomo signed legislation to make it easier and less expensive for legal

guardians caring for the elderly or other relatives to carry out their responsibilities.

The Uniform Guardianship and Protective Proceedings Jurisdiction Act (Chapter 427 of the Laws

of 2013) was sponsored by Senator Kemp Hannon (R- Nassau) and Assemblymember Helene Weinsten

(D Brooklyn). The Act assists New Yorkers caring for adults in other states, as well as out-of-state

individuals caring for elderly New Yorkers when they seek approval to fulfill health care, financial, and

other legal responsibilities across state lines. It creates a registration form that would be used uniformly by

participating states and replaces a legal process that often required guardians to hire lawyers.

With adoption, New York becomes the 37th state to adopt standards.

According to the sponsors, due to increasing population mobility, cases involving simultaneous

and conflicting jurisdiction over guardianship are increasing. Often, jurisdiction in adult guardianship

cases is complicated because multiple states, each with its own adult guardianship system, may have an

interest in the case. Consequently, it may be unclear which state court has jurisdiction to decide the

guardianship issue.

This new law establishes a uniform set of rules for determining jurisdiction, and thus, simplifies

the process for determining jurisdiction between multiple states in adult guardianship cases. It also

establishes a framework that allows state court judges in different states to communicate with each other

about adult guardianship cases.

The New York State Bar Association lauded the signing and noted the “key provision” that

recognizes the jurisdiction of the home state of an incapacitated individual for guardianship purposes,

regardless of the person's physical location. According to the Bar Association, in most cases, the Act

would require states to cede jurisdiction in guardianship cases to the individual's home state and

cooperate with the home state with regard to the collection of evidence.

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Provisions of the new law include:

Authorizes guardians or conservators to register their New York orders in other states.

Creates a process to transfer a guardianship or conservatorship to another state and for

accepting a transfer.

Establishes a process to determine which state has jurisdiction to appoint a guardian or

conservator if there is a conflict.

Protects the elderly from abuse and “granny snatching” by preventing someone from

wrongfully taking control and assets from an elder, taking the elder across state lines and

being named a guardian. In these situations, courts could decline the guardianship due to

unjustifiable conduct and penalize abusers.

“Forcing caregivers to spend time in lengthy and expensive court proceedings that drain

family resources undermines their ability to provide care for their loved ones,” said Beth Finkel, State

Director for AARP in New York. “Governor Cuomo has taken an important step toward cutting red

tape for New Yorkers who care for loved ones in more than two thirds of other states, which already

have this law on the books. AARP hopes the momentum will push the final states to join and create

uniformity and reciprocity across the nation.”

Actions by the Governor

Bills Signed by the Governor Chapter 388 (sponsored by M of A Paulin /Senator Ball) -- Enacts "Hannah's law"; requires certain

insurance policies to include coverage for the cost of enteral formulas.

Chapter 395 (sponsored by M of A Weisenberg) /Senator Carlucci) -- Relates to the release of

mental hygiene records pertaining to allegations and investigations of abuse or mistreatment.

Chapter 396 (sponsored by M of A Gottfried /Senator Hannon) -- Directs the department of health

to provide oversight of the transitioning of individuals to managed long term care operated by health

maintenance organizations.

Chapter 397 (sponsored by M of A People-Stokes /Senator Hannon) -- Requires general hospitals to

provide notice to patients placed in observation services and explain the implications thereof.

Chapter 411 (sponsored by M of A Otis /Senator Savino) -- Includes in the definition of "artistic and

creative services", for the purposes of the employment and education of child performers, the services

of runway and print models; repealer.

This Week In New York/Page 5

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Chapter 414 (sponsored by M of A Gottfried /Senator Hannon) -- Directs the department of health

to develop a streamlined application and review process for adult care facility and assisted living

operators who are in good standing.

Chapter 417 (sponsored by M of A Glick /Senator Little) -- Relates to the sale, distribution, transport

and trade of eurasian boars.

Chapter 425 (sponsored by M of A Zebrowski /Senator Hannon) -- Requiring hospitals to offer

hepatitis C testing.

Chapter 427 (sponsored by M of A Weinstein (MS) /Senator Hannon) -- Enacts the uniform

guardianship and protective proceedings jurisdiction act

Chapter 428 (sponsored by M of A Kellner (MS) /Senator Robach) -- Provides that persons with

clotting protein deficiencies who are otherwise eligible for certain health insurance programs shall

have access to reimbursement for certain treatments.

Chapter 432 (sponsored by M of A Weinstein/Senator Bonacic) -- Relates to the effectiveness of the

exercise of a power of appointment and an authorized trustee's authority to invade trust principal.

Chapter 443 (sponsored by M of A Pretlow/Senator LaValle) -- Relates to mandatory continuing

education for social workers.

Chapter 445 (sponsored by M of A Gunther/Senator Carlucci) -- Increases the number of visits with

no prior notice that can be made to facilities operated or licensed by the office for people with

developmental disabilities each year.

Chapter 458 (sponsored by M of A Hooper/Senator Hannon) -- Authorizes the Nassau health care

corporation to enter into contracts and arrangements providing for the creation and operation of a

delivery system network.

Bills Vetoed by the Governor Veto 235 (sponsored by M of A Englebright/ Senator DeFrancisco) -- Establishes that not-for-profit

organizations shall be entitled to all prompt contracting interest due from a state agency at the time of

the first payment.

Veto 236 (sponsored by M of A People-Stokes/Senator Grisanti) -- Provides for the local social

services district to notify the office of children and family services when there is a change in the

eligibility level.

In the News – New York City

This Week In New York/Page 6

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Gearing Up For Scaffolding Law Battle

Advocates Release Report Finding that 74% fatal

construction-related falls in New York City

involved Latino and/or immigrant workers

Proponents Calls on Governor to Continue

Economic Development Focus

New York’s 128-year-old scaffolding law continues to be a high legislative priority, with

advocates and opponents alike shoring up their 2014 advocacy efforts.

This week, the law’s proponents released a study which found that construction workers of

color in New York State disproportionately face construction dangers and called for the continued

protection of the scaffold law. Meanwhile, opponents have reached out to Governor Andrew Cuomo

asking him to build upon his economic development efforts and include reworking the State Labor

Law in his 2014-15 Executive budget.

The 1885 law makes property owners and contractors liable for all “gravity-related” injuries

on construction sites and has been the subject of increasing debate during recent sessions. In June,

according to published reports, Assembly Speaker Sheldon Silver “killed” reform efforts during the

closing week of legislative session.

The Daily News reported that prior to the close of session, Assemblyman Karim Camara (D-

Brooklyn), chairman of the Black, Puerto Rican, Hispanic and Asian caucus, wrote a letter to the

Speaker asserting that a weakened Scaffold Law would hurt minority and immigrant construction

workers “who are more likely to work for low wages and under unsafe conditions…Those workers,

who are completely dependent on their employers for safety training and equipment, are exactly who

the Scaffold Law was meant to protect.”

In recent weeks, business groups renewed the call for reform, acknowledging that the issue

has been debated for years, but recent difficulties in obtaining insurance may bring change. “I think

this is going to be a much more real conversation,” Heather Briccetti, CEO of the Business Council of

New York State, said in a radio interview.

This Week In New York/Page 7

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The Lawsuit Reform Alliance of New York -- which includes the Business Council, the

General Contractors Association of New York, the Long Island Association, the Conference of

Mayors, and the School Boards Association -- asserts that changing the law would advance Governor

Cuomo's stated goals of improving the state's economic climate and of lowering costs of municipal

government. It contends that repealing the law would save taxpayers more than $1 billion a year.

"New York can no longer afford to remain the only state in the nation with an absolute

liability standard for elevation related construction injuries," the group said in a letter to the

Governor. "Repealing or reforming this outdated statute would reduce costs to taxpayers, create jobs

and generate tax revenue with no adverse impact on worker safety.”

This week, the Center for Popular Democracy released a study, "Fatal Inequality: Workplace

Safety Eludes Construction Workers of Color," which found that construction workers of color in

New York State disproportionately face construction dangers. In addition, the report cited that

Latinos and immigrants are more likely to die in construction falls - the largest single cause of

construction fatalities - than other construction workers.

According to the report, the majority of falls came at construction sites where a U.S. Occupational

Safety and Health Administration (OSHA) investigation found "serious" violations of safety

regulations. Specifically, the report, which reviewed OSHA investigations of construction site

accidents involving a "fatal fall from an elevation" from 2003 – 2011, found:

In 60 percent of the OSHA-investigated "fall from an elevation fatalities in New York State,

the worker was Latino and/or immigrant, disproportionately high for their participation in

construction work (people of color make up 40% of construction workers).

In New York City, the victims in 74% of fatal falls were Latino and/or immigrant workers.

Narrowing further, 88% of fatal falls in Queens and 87% in Brooklyn involved Latinos and/or

immigrants.

86% of Latino and/or immigrant workers killed in a "fall from an elevation" on a construction

site in New York were working for a non-union employer.

The State Legislature returns to Albany in January to begin the 2014 session. All of the

State’s elected officials, including the Governor, are up for re-election in November following the

session.

Briefs

This Week In New York/Page 8

Pitta Bishop Del Giorno & Giblin LLC, 111 Washington Avenue, Albany, New York. (518) 449-3320

Theresa Cosgrove, editor, tcosgrove@pittabishop.com

Federal Appeals Court Blocks Enforcement of State Limit on

PAC Donations

A federal appeals court in Manhattan this week issued a preliminary injunction blocking the

enforcement of a $150,000 annual limit on how much individuals can contribute to an independent

political action committee.

New York Progress and Protection PAC asserted that the current state law limiting

contributions violated the First Amendment. Alabama businessman, Shaun McCutcheon, had

pledged to contribute at least $200,000 to the group, which supports Republican New York City

mayoral candidate Joe Lhota.

The decision came from a three-judge appeals panel. Chief Judge Dennis Jacobs, who wrote

the decision, said that since Citizens United, every appeals court nationwide facing similar cases has

ruled against campaign contribution limits, according to published reports.

A copy of the decision is attached for your reference.

NY State of Health Update: More than 37,000 enrolled in Health

Insurance through Marketplace; Most Placed into Medicaid

The NY State of Health (NYSOH), the official health plan marketplace, reported this week

that 37,030 New Yorkers have fully enrolled for health insurance through its marketplace.

Approximately 24,000 of the new enrollees were eligible for Medicaid because of their income

levels. The remainder, 13,313, chose private insurance, according to the State Health Department.

Almost 174,000 New Yorkers have completed the full application process and were

determined eligible for health insurance plans since the October 1st launch. New York State’s

completed applications make up more than 30 percent of the total applications completed nationwide.

“In just three weeks since the launch of NY State of Health, already nearly 174,000 New

Yorkers have signed up for quality, low-cost health insurance and more than 37,000 have enrolled,”

Donna Frescatore, executive director of NY State of Health, said. “Our marketplace is operating very

smoothly, and we are pleased to see that tens of thousands of individuals and small business owners

across the state are turning to nystateofhealth.ny.gov to access low-cost health insurance.”

New Yorkers have until March 31 to enroll, and the first round of coverage begins January 1,

2014. To be covered by January 1, 2014, New Yorkers must enroll by December 15, 2013.

NY Launches "Come See The Comeback" Sandy Tourism Campaign

Featuring MTA Discounts And Promotions

This Week In New York/Page 9

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Unveils six commemorative MetroCards to serve as New Yorkers’ and tourists’ passports to

destinations impacted by Sandy and four TV ads to highlight State’s comeback

Governor Andrew M. Cuomo today launched a “Come See the Comeback” tourism campaign

to promote tourism in communities recovering from Superstorm Sandy. The campaign partners with

the Metropolitan Transportation Authority (MTA) by highlighting discounts and promotions on the

Metro-North Railroad and Long Island Rail Road to promote travel to these areas. The Governor also

unveiled television ads that feature recovering communities and new MetroCards designed with the “I

Love NY” logo. The “I Love NY” trains on the Grand Central-Times Square shuttle launched earlier

this week will also include new interior ads for this campaign.

The tourism campaign is fully funded by the State’s tourism budget with no additional cost to

the MTA or straphangers, according to the Governor.

NYC Releases Results of Flood Insurance Study That Demonstrates

New Federal Flood Maps and Rules Will Significantly Increase Costs

The Number of Families Required to Pay for Federal Flood Insurance will Double When New

FEMA Maps are Complete

The Bloomberg Administration today released a study finding numerous gaps in the National

Flood Insurance Program that will significantly increase flood insurance costs for New York City

residents.

The independent study was commissioned by the City of New York to help evaluate current

flood insurance coverage and premiums and prepare for expected rate increases due to major reforms

of the flood insurance program and updates to the Federal Emergency Management Agency’s flood

maps.

The study found that 35 % of property owners in the floodplain who are required to carry

flood insurance today do not have it. Under new FEMA flood maps that will be adopted shortly,

thousands of new properties will now be considered in the floodplain, increasing owner’s insurance

premiums from an average of $430 to $5,000 to $10,000 per year.

According to the Mayor, the City will press Congress and FEMA to take steps to protect

homeowners, including delaying or modifying the implementation of some provisions of the new

National Flood Insurance Program until measures to ensure that flood insurance stays affordable for

low and middle income families are in place.

Coming Up

This Week In New York/Page 10

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New York State Monday October 28th

To investigate the impact of the Office of Mental Health’s Regional Centers of Excellence on

community based services, access to in-patient care, and the effect on local communities,

consumers and family members

Senate Standing Committees on Mental Health and Developmental Disabilities and Health

Chemung County Legislative Chambers, 203 Lake Street, John H. Hazlett Building, 5th Floor,

Elmira, 11 a.m.

Tuesday October 29th

The Regents Reform Agenda: “Assessing” Our Progress

Senate Standing Committee on Education and Senate Subcommittee on New York City Education

250 Broadway, Senate Hearing Room, 19th Floor, New York, 10 a.m.

Thursday October 31st

The New York Public Library’s Central Library Plan

Assembly Standing Committee on Libraries and Education Technology

250 Broadway, Assembly Hearing Room, Room 1923, 19th Floor, New York, 10:30 a.m.

New York City

Monday October 28th Committee on Economic Development, 250 Broadway-Committee Rm, 16

th fl, 10 a.m.

Int 1169-2013- in relation to establishing training and transparency requirements for certain city

development projects receiving city financial assistance.

Committee on Lower Manhattan Redevelopment, 250 Broadway-Committee Rm, 14th fl, 10 a.m.

T2013-7028- Oversight - The Effect of Residential Construction Projects on the Lower Manhattan

Neighborhood.

Committees on Aging and Community Development, 250 Broadway-Committee Rm, 16th fl, 1 p.m.

T2013-7034- Oversight - The Center for Economic Opportunity Poverty Measure, 2005 – 2011.

Committee on Technology, 250 Broadway-Committee Rm, 14th fl, 1 p.m.

T2013-7031- Oversight – DoITT’s Contract Hiring of Minority and Women Owned Business

Enterprises.

Committees on Women’s Issues and General Welfare, City Hall- Council Chambers, 2 p.m.

T2013-6937- Oversight - Implementation of Early Learn.

Tuesday October 29th Committee on Public Safety, 250 Broadway- Committee Rm, 16th fl, 10 a.m.

This Week In New York/Page 11

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Committee on Waterfronts, Brooklyn Navy Yard, 63 Flushing Ave #300, New York, 1 p.m.

T2013-7025- Tour: Brooklyn Navy Yard.

Committee on Civil Service and Labor, 250 Broadway-Committee Rm, 16th fl, 1 p.m.

T2013-7029- Oversight - The DCAS Five Year Provisional Reduction Plan—Five Years Later.

Wednesday October 30th City Council Stated Meeting, City Hall- Council Chambers, 1:30 p.m.

Thursday October 31st Committee on Youth Services, City Hall- Council Chambers, 10 a.m.

T2013-6914- Oversight - How do the Human Trafficking Intervention Courts address the needs of

New York City’s Runaway and Homeless Youth Population?

Res 1649-2013- Resolution recognizing October 11 as the “Day of the Girl Child” in New York City.

Committee on Transportation, 250 Broadway –Committee Rm, 14th

fl, 10 a.m.

Int 0414-2010- in relation to placing greater regulations and restraints on the creation of driveway

curb cuts, and providing local community board notification.

Int 0535-2011- in relation to a speed limit in residential areas on residential streets.

Int 0635-2011- in relation to requiring community board notification following the establishment of a

commuter van route and online publication of such routes.

Int 0904-2012- in relation to periodic interagency roadway safety plans.

Int 1123-2013- in relation to requiring all HAIL vehicles be accessible to those with visual

impairments.

Committee on Governmental Operations, 250 Broadway–Committee Rm, 16th fl, 10 a.m.

Committee on Contracts, 250 Broadway–Hearing Rm, 16th fl, 1 p.m.

T2013-6378- Oversight – The Department of Homeless Services’ Use of Emergency Procurement.

Committees on Higher Education and Mental Health, Developmental Disability, Alcoholism, Drug

Abuse, and Disability Services, 250 Broadway–Committee Rm, 16th

fl, 1 p.m.

T2013-7030- Oversight - Are Colleges Offering Adequate Mental Health Services to Students?

Committee on Civil Rights, 250 Broadway–Committee Rm, 14th fl, 1 p.m.

T2013-7005- Oversight - Recent Increase in Anti-Gay Hate Crimes in the City.

Friday November 1st Committee on Public Housing, 55 Dwight Street, Brooklyn, 2 p.m.

This Week In New York/Page 12

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T2013-7035- Tour: New York City Housing Authority Development, Red Hook Houses.

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