S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5128
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                      May 4, 2015
                                      ___________
       Introduced  by  Sen. VALESKY -- read twice and ordered printed, and when
         printed to be committed to the Committee on Corporations,  Authorities
         and Commissions
       AN  ACT to amend the not-for-profit corporation law, in relation to land
         banks
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1. Paragraphs 20 and 21 of subdivision (a) of section 1607 of
    2  the not-for-profit corporation law, as added by chapter 257 of the  laws
    3  of 2011, are amended to read as follows:
    4    (20)  to  enter in agreements with a foreclosing governmental unit for
    5  the distribution of revenues to the foreclosing  governmental  unit  and
    6  school district; [and]
    7    (21)  to  do  all other things necessary to achieve the objectives and
    8  purposes of the land bank or other laws that relate to the purposes  and
    9  responsibility of the land bank[.];
   10    S 2. Subdivision (a) of section 1607 of the not-for-profit corporation
   11  law  is  amended  by  adding  two  new  paragraphs  22 and 23 to read as
   12  follows:
   13    (22) TO LEND MONEY, TO MAKE GRANTS AND TAKE AND HOLD REAL AND PERSONAL
   14  PROPERTY AS SECURITY FOR THE PAYMENT OF  FUNDS  SO  LOANED  OR  FOR  THE
   15  PERFORMANCE AND ENFORCEMENT OF GRANT AGREEMENTS; AND
   16    (23) TO ORGANIZE A SUBSIDIARY FOR A PROJECT OR PROJECTS WHICH THE LAND
   17  BANK HAS THE POWER TO PURSUE HEREUNDER WHEN THE PRIMARY REASON FOR WHICH
   18  THE  SUBSIDIARY  SHALL  BE  ORGANIZED  SHALL  BE  TO LIMIT THE POTENTIAL
   19  LIABILITY IMPACT OF THE SUBSIDIARY'S PROJECT OR  PROJECTS  ON  THE  LAND
   20  BANK  OR  BECAUSE  STATE  OR  FEDERAL LAW REQUIRES THAT THE PURPOSE OF A
   21  SUBSIDIARY BE UNDERTAKEN THROUGH A SPECIFIC CORPORATE OR BUSINESS STRUC-
   22  TURE AND AS LONG AS THE SUBSIDIARY CORPORATION SHALL  MAKE  THE  REPORTS
   23  AND  OTHER  DISCLOSURES  AS  ARE  REQUIRED  OF LOCAL PUBLIC AUTHORITIES,
   24  UNLESS THE SUBSIDIARY'S OPERATIONS AND FINANCES  ARE  CONSOLIDATED  WITH
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD10202-01-5
       S. 5128                             2
    1  THOSE  OF THE LAND BANK OF WHICH IT IS A SUBSIDIARY.  SUBSIDIARIES SHALL
    2  NOT HAVE THE AUTHORITY TO ISSUE BONDS, NOTES OR OTHER  DEBTS,  PROVIDED,
    3  HOWEVER,  THAT  SUCH  SUBSIDIARIES  MAY ISSUE NOTES OR OTHER DEBT TO THE
    4  LAND  BANK  OF  WHICH  IT  IS A SUBSIDIARY. THE ORGANIZATIONAL DOCUMENTS
    5  FILED TO ORGANIZE A SUBSIDIARY HEREUNDER SHALL STATE THAT THE LAND  BANK
    6  IS ORGANIZING THE SUBSIDIARY.
    7    S 3. Subdivision (a) of section 1608 of the not-for-profit corporation
    8  law,  as added by chapter 257 of the laws of 2011, is amended to read as
    9  follows:
   10    (a) The real property of a land bank and its income and operations are
   11  exempt from all taxation by the state of New York  and  by  any  of  its
   12  political  subdivisions.  NOTWITHSTANDING  ANY OTHER GENERAL, SPECIAL OR
   13  LOCAL LAW RELATING TO FEES OF CLERKS, NO CLERK SHALL CHARGE OR COLLECT A
   14  FEE FOR FILING, RECORDING  OR  INDEXING  ANY  PAPER,  DOCUMENT,  MAP  OR
   15  PROCEEDING  FILED,  RECORDED  OR  INDEXED FOR A LAND BANK, OR AN OFFICER
   16  THEREOF ACTING IN AN OFFICIAL CAPACITY, NOR FOR FURNISHING A TRANSCRIPT,
   17  CERTIFICATION OR COPY OF ANY PAPER, DOCUMENT, MAP OR  PROCEEDING  TO  BE
   18  USED FOR LAND BANK PURPOSES.
   19    S  4.  The not-for-profit corporation law is amended by adding two new
   20  sections 1608-a and 1608-b to read as follows:
   21  S 1608-A. ACCESS TO REAL PROPERTY PRIOR TO ACQUISITION.
   22    NOTWITHSTANDING ANY GENERAL, SPECIAL OR LOCAL LAW OR ORDINANCE TO  THE
   23  CONTRARY:
   24    (A) TO CARRY OUT THE POWERS, DUTIES AND GOALS IDENTIFIED IN THIS ARTI-
   25  CLE,  LAND  BANKS  SHALL BE AUTHORIZED, IN ACCORDANCE WITH THE PROCEDURE
   26  DESCRIBED IN THIS SECTION, TO ACCESS ANY TAX DELINQUENT PARCEL  OF  REAL
   27  PROPERTY  THAT  THE  LAND  BANK  INTENDS TO ACQUIRE FROM ANY FORECLOSING
   28  GOVERNMENTAL UNIT, IN ORDER TO DETERMINE THE PHYSICAL CONDITION  OF  ANY
   29  BUILDINGS  OR  STRUCTURES ON SUCH PARCEL, OR TO ASSESS THE ENVIRONMENTAL
   30  CONDITION OF SUCH PARCEL.  IF  DEEMED  APPROPRIATE,  SUCH  ACCESS  SHALL
   31  INCLUDE  THE  ABILITY TO ENGAGE AN ENVIRONMENTAL PROFESSIONAL TO CONDUCT
   32  "ALL APPROPRIATE INQUIRIES" INTO THE FORMER USE AND  OWNERSHIP  OF  SUCH
   33  PROPERTY,  IN  ORDER TO DETERMINE WHETHER HAZARDOUS MATERIALS, HAZARDOUS
   34  SUBSTANCES OR OTHER CONTAMINANTS WERE PREVIOUSLY RELEASED OR DISPOSED OF
   35  ON SUCH PARCEL, CONSISTENT WITH GOOD COMMERCIAL AND CUSTOMARY PRACTICE.
   36    (B) FOLLOWING THE COMMENCEMENT OF A PROCEEDING TO FORECLOSE A TAX LIEN
   37  BY THE TAXING DISTRICT HAVING ANY RIGHT, TITLE OR INTEREST  IN  OR  LIEN
   38  UPON ANY PARCEL, A LAND BANK MAY, UPON NOT LESS THAN TWENTY DAYS' NOTICE
   39  TO  ALL  PARTIES  HAVING RIGHT, TITLE, OR INTEREST IN, OR LIEN UPON SUCH
   40  PARCEL, MOVE, AT A SPECIAL TERM IN THE COURT IN  WHICH  THE  FORECLOSURE
   41  PROCEEDING  WAS  INITIATED,  OR  IF SUCH PROCEEDING IS AN ADMINISTRATIVE
   42  PROCEEDING PURSUANT TO THE PROVISIONS OF A COUNTY CHARTER, CITY CHARTER,
   43  ADMINISTRATIVE CODE, OR SPECIAL LAW WHEN APPLICABLE UNDER SECTION ELEVEN
   44  HUNDRED FOUR OF THE REAL PROPERTY TAX LAW, THEN SUCH MOTION SHALL BE  AT
   45  A  SPECIAL  TERM  OF THE STATE SUPREME COURT IN THE COUNTY IN WHICH SUCH
   46  PARCEL IS LOCATED, FOR AN ORDER GRANTING THE  LAND  BANK  THE  TEMPORARY
   47  INCIDENTS  OF  OWNERSHIP OF SUCH PARCEL FOR THE SOLE PURPOSE OF ENABLING
   48  IT AND ITS AGENTS TO ENTER THE PARCEL TO CONDUCT VISUAL  INSPECTION  AND
   49  SUCH  FURTHER ENVIRONMENTAL INVESTIGATION OF THE PARCEL AS THE LAND BANK
   50  DEEMS NECESSARY IN  ORDER  TO  DETERMINE  WHETHER  HAZARDOUS  MATERIALS,
   51  HAZARDOUS  SUBSTANCES  OR OTHER CONTAMINANTS WERE PREVIOUSLY RELEASED OR
   52  DISPOSED OF ON SUCH PARCEL.  SUCH INSPECTION MAY INCLUDE INVASIVE  TEST-
   53  ING,  INCLUDING  BUT  NOT  LIMITED TO SAMPLING OF SURFACE AND SUBSURFACE
   54  SOIL AND/OR GROUNDWATER, AS IS CONSIDERED BY  AN  ENVIRONMENTAL  PROFES-
   55  SIONAL TO BE NECESSARY AND CONSISTENT WITH GOOD COMMERCIAL AND CUSTOMARY
   56  PRACTICE  FOR CONDUCTING "ALL APPROPRIATE INQUIRIES" INTO THE FORMER USE
       S. 5128                             3
    1  AND CONDITION OF SUCH PARCEL. FOLLOWING ANY SUCH INVASIVE  TESTING,  THE
    2  LAND  BANK  SHALL  RETURN  THE PARCEL, TO THE EXTENT PRACTICABLE, TO THE
    3  CONDITION IT WAS IN BEFORE THE INVESTIGATION.
    4    (C)  UNLESS PRIOR TO THE RETURN DATE OF THE MOTION BROUGHT PURSUANT TO
    5  THIS SECTION THE PROPERTY HAS BEEN REDEEMED  BY  THE  PARTY  HAVING  THE
    6  RIGHT OF REDEMPTION, THE COURT SHALL ENTER AN ORDER GRANTING SUCH RELIEF
    7  TO THE LAND BANK. SUCH ORDER SHALL BE GRANTED UPON SUCH TERMS AND CONDI-
    8  TIONS  AS  THE COURT SHALL DEEM JUST AND PROPER TO PERMIT THE INSPECTION
    9  TO OCCUR UNHINDERED AS WELL AS TO PROTECT THE  INTERESTS  OF  ALL  OTHER
   10  PARTIES HAVING AN OWNERSHIP INTEREST IN THE PARCEL. SUCH ORDER SHALL ACT
   11  AS A STAY TO THE FORECLOSURE ACTION ON SUCH PARCEL OF PROPERTY UNTIL THE
   12  INSPECTION HAS BEEN COMPLETED AND A REPORT OF THE INVESTIGATION HAS BEEN
   13  FILED WITH THE COURT.
   14    (D)  SUCH  TEMPORARY  INCIDENTS OF OWNERSHIP IN THE PARCEL BY THE LAND
   15  BANK SHALL NOT BE SUFFICIENT OR CONSTRUED TO CONSTITUTE ACTUAL OWNERSHIP
   16  OF THE PARCEL FOR PURPOSES OF ANY  APPLICABLE  ENVIRONMENTAL  LAW  WHICH
   17  CONFERS  LIABILITY  FOR  DAMAGES  CAUSED BY THE RELEASE OF ANY HAZARDOUS
   18  MATERIAL, SUBSTANCE OR CONTAMINANT, UNLESS  SUCH  RELEASE  WAS  ACTUALLY
   19  CAUSED BY THE LAND BANK.
   20    (E)  WITHIN  THIRTY  DAYS  FOLLOWING THE COMPLETION OF THE INSPECTION,
   21  INCLUDING RECEIPT OF A  FINAL  REPORT  RECEIVED  FROM  AN  ENVIRONMENTAL
   22  PROFESSIONAL CONDUCTING THE INSPECTION, IF ANY, THE LAND BANK SHALL FILE
   23  ANY SUCH REPORT, OR A DESCRIPTION OF THE RESULTS OF THE INSPECTION IF NO
   24  FORMAL  ENVIRONMENTAL  INVESTIGATION  OF THE PARCEL WAS UNDERTAKEN, WITH
   25  THE COURT ON NOTICE TO THE COURT AND ALL OTHER PARTIES  OF  RECORD,  AND
   26  THE  STAY OF THE FORECLOSURE SHALL BE LIFTED (UNLESS LIFTED EARLIER BY A
   27  PRIOR COURT ORDER), AND ALL INCIDENTS OF TEMPORARY OWNERSHIP OF THE LAND
   28  BANK THAT WAS AWARDED TO SUCH LAND BANK, SHALL CEASE TO EXIST, AND NOTH-
   29  ING IN THIS SUBDIVISION SHALL PRECLUDE THE LAND BANK THAT CONDUCTED  THE
   30  INSPECTION  FROM  MAKING  A  DETERMINATION NOT TO ACQUIRE THE PARCEL, OR
   31  PRECLUDE THE TAXING JURISDICTION THAT COMMENCED THE FORECLOSURE  ACTION,
   32  FROM  WITHDRAWING THE PARCEL FROM FORECLOSURE PURSUANT TO SECTION ELEVEN
   33  HUNDRED THIRTY-EIGHT OF THE REAL PROPERTY TAX LAW  OR  PURSUANT  TO  THE
   34  PROVISIONS  OF  A  COUNTY CHARTER, CITY CHARTER, ADMINISTRATIVE CODE, OR
   35  SPECIAL LAW WHEN APPLICABLE UNDER SECTION ELEVEN  HUNDRED  FOUR  OF  THE
   36  REAL PROPERTY TAX LAW.
   37  S 1608-B. LIABILITY EXEMPTION AND DEFENSES.
   38    NOTWITHSTANDING  ANY GENERAL, SPECIAL OR LOCAL LAW OR ORDINANCE TO THE
   39  CONTRARY:
   40    IN CARRYING OUT THE POWERS, DUTIES AND GOALS IDENTIFIED IN THIS  ARTI-
   41  CLE  WITH  RESPECT TO THE ACQUISITION AND OWNERSHIP OF VACANT, ABANDONED
   42  OR TAX DELINQUENT REAL PROPERTY, NO LAND BANK ORGANIZED PURSUANT TO THIS
   43  TITLE SHALL INCUR LIABILITY FROM  ANY  STATUTORY  CLAIMS  OF  THE  STATE
   44  RELATING  TO  THE  PRESENCE,  RELEASE  OR  DISPOSAL  OF HAZARDOUS WASTE,
   45  HAZARDOUS SUBSTANCES, PETROLEUM OR OTHER CONTAMINANTS ON REAL  PROPERTY,
   46  BY  VIRTUE OF ITS ACQUISITION AND OWNERSHIP OF ANY PROPERTY CONTAMINATED
   47  BY SUCH  HAZARDOUS  WASTE,  HAZARDOUS  SUBSTANCES,  PETROLEUM  OR  OTHER
   48  CONTAMINANTS, PROVIDED THAT THE FOLLOWING CONDITIONS ARE MET:
   49    (A)  SUCH  PROPERTY  CONSTITUTED  VACANT,  ABANDONED OR TAX DELINQUENT
   50  PROPERTY AND WAS ACQUIRED BY  THE  LAND  BANK  TO  EFFECT  THE  PURPOSES
   51  DESCRIBED IN SECTION SIXTEEN HUNDRED ONE OF THIS ARTICLE;
   52    (B)  THE  RELEASE  OR  DISPOSAL  OF  THE  HAZARDOUS  WASTE,  HAZARDOUS
   53  SUBSTANCES, PETROLEUM OR OTHER CONTAMINANTS OCCURRED BEFORE THE ACQUISI-
   54  TION OF THE PROPERTY BY THE LAND BANK;
   55    (C) THE LAND BANK DID NOT  CAUSE  OR  CONTRIBUTE  TO  THE  RELEASE  OR
   56  THREATENED  RELEASE OF THE HAZARDOUS WASTE OR PETROLEUM FROM OR ONTO THE
       S. 5128                             4
    1  PROPERTY, OR GENERATE, TRANSPORT, OR DISPOSE OF SUCH HAZARDOUS WASTE  OR
    2  PETROLEUM,  OR  ARRANGE FOR, OR CAUSE THE GENERATION, TRANSPORTATION, OR
    3  DISPOSAL OF HAZARDOUS WASTE, FROM OR ONTO THE SITE; AND
    4    (D)  SUCH  PROPERTY  WAS  ACQUIRED  BY  THE LAND BANK EITHER DIRECTLY,
    5  THROUGH FORECLOSURE OF A TAX LIEN, OR,  WAS  ACQUIRED  FROM  ANY  PUBLIC
    6  CORPORATION,   AS   DEFINED   IN   SECTION  SIXTY-FIVE  OF  THE  GENERAL
    7  CONSTRUCTION LAW FOLLOWING THE INVOLUNTARY ACQUISITION OF OWNERSHIP  AND
    8  CONTROL BY SUCH PUBLIC CORPORATION, INCLUDING BUT NOT LIMITED TO:
    9    (1)  ACQUISITIONS  BY  A PUBLIC CORPORATION IN ITS SOVEREIGN CAPACITY,
   10  INCLUDING BUT  NOT  LIMITED  TO  ACQUISITIONS  PURSUANT  TO  ABANDONMENT
   11  PROCEEDINGS OR BEQUESTS;
   12    (2)  ACQUISITIONS  BY  A PUBLIC CORPORATION, OR ITS AGENT, ACTING AS A
   13  CONSERVATOR OR RECEIVER PURSUANT TO A CLEAR AND DIRECT STATUTORY MANDATE
   14  OR REGULATORY AUTHORITY;
   15    (3) ACQUISITIONS OF ASSETS THROUGH FORECLOSURE AND ITS EQUIVALENTS, OR
   16  OTHERWISE, BY A PUBLIC CORPORATION IN  THE  COURSE  OF  ADMINISTERING  A
   17  LOAN,  LOAN  GUARANTEE,  TAX LIEN, OR TAX FORBEARANCE AGREEMENT, OR LOAN
   18  INSURANCE PROGRAM;
   19    (4) ACQUISITIONS BY A PUBLIC CORPORATION PURSUANT TO SEIZURE,  INJUNC-
   20  TION,  CONDEMNATION,  OR FORFEITURE AUTHORITY; PROVIDED THAT SUCH OWNER-
   21  SHIP OR CONTROL IS NOT RETAINED PRIMARILY FOR INVESTMENT PURPOSES.
   22    S 5. Section 1609 of the not-for-profit corporation law is amended  by
   23  adding a new subdivision (a-1) to read as follows:
   24    (A-1) THIS SECTION GOVERNING THE DISPOSITION OF PROPERTY BY LAND BANKS
   25  SHALL  SUPERSEDE SECTION TWENTY-EIGHT HUNDRED NINETY-SEVEN OF THE PUBLIC
   26  AUTHORITIES LAW IN THE GOVERNANCE OF PROPERTY DISPOSITIONS BY LAND BANKS
   27  AND, AS SUCH, NOTWITHSTANDING ANY OTHER GENERAL, SPECIAL OR LOCAL LAW TO
   28  THE CONTRARY, SECTION TWENTY-EIGHT HUNDRED NINETY-SEVEN  OF  THE  PUBLIC
   29  AUTHORITIES LAW SHALL NOT APPLY TO LAND BANKS.
   30    S 6. Subdivision (a) of section 1609 of the not-for-profit corporation
   31  law,  as added by chapter 257 of the laws of 2011, is amended to read as
   32  follows:
   33    (a) The land bank shall hold in its own name, OR  IN  THE  NAME  OF  A
   34  LAWFULLY  ORGANIZED  SUBSIDIARY,  all real property acquired by the land
   35  bank irrespective of the identity of the transferor of such property.
   36    S 7. This act shall take effect on the ninetieth day  after  it  shall
   37  have become a law.