Preconsidered. Int. No. 1002
By Council Member Lee (by request of the Mayor)
A Local Law to establish a temporary program to resolve outstanding judgments imposed by the environmental control board
Be it enacted by the Council as follows:
Section 1. Temporary program to resolve eligible judgments. a. Definitions. For purposes of this section, the following terms have the following meanings:
Amnesty period. The term “amnesty period” means the period of time, as determined by the commissioner of finance pursuant to subdivision g of this section, during which a payor or respondent may resolve eligible judgments imposed by the environmental control board pursuant to the temporary program.
Base penalty. The term “base penalty” means, with respect to any notice of violation returnable to the environmental control board, the penalty that would be imposed upon a timely admission by the respondent or finding of liability after an adjudication, pursuant to the applicable penalty schedule, without regard to reductions of penalty in cases of mitigation or involving stipulations.
City. The term “city” means the city of New York.
Default decision and order. The term “default decision and order” means a decision and order of the environmental control board, pursuant to subparagraph (d) of paragraph 1 of subdivision d of section 1049-a of the charter of the city, determining a respondent’s liability for a violation charged based upon that respondent’s failure to plead within the time allowed by the rules of the environmental control board or failure to appear before the environmental control board on a designated adjudication date or on a subsequent date following an adjournment.
Default penalty. The term “default penalty” means, with respect to any notice of violation returnable to the environmental control board, the penalty imposed by the environmental control board, pursuant to subparagraph (d) of paragraph 1 of subdivision d of section 1049-a of the charter of the city, in an amount up to the maximum amount prescribed by law for the violation charged, without regard to reductions of penalty in cases of mitigation or involving stipulations.
Eligible judgment. The term “eligible judgment” means a judgment other than an excluded judgment.
Environmental control board. The term “environmental control board” means a division of the office of administrative trials and hearings and its tribunal, as described in section 1049-a of the charter of the city.
Excluded judgment. The term “excluded judgment” means any judgment:
(1) subject to a payment agreement with a city marshal, the sheriff, the corporation counsel, or a contractor of the corporation counsel;
(2) for a violation that is the subject of a complaint served pursuant to section 24-182 or 24-261 of the administrative code of the city;
(3) for which an execution has been issued for enforcement pursuant to chapter 52 of the civil practice law and rules and the period of such execution has not expired;
(4) for a violation that is the subject of a criminal investigation for which the department of finance has been notified in accordance with a procedure determined by such department; or
(5) that has been entered as a tax lien in accordance with section 28-204.6 of such code.
Imposed penalty. The term “imposed penalty” means, with respect to any notice of violation returnable to the environmental control board, the penalty imposed by the environmental control board after an adjudication, pursuant to subparagraph (a) of paragraph 1 of subdivision d of section 1049-a of the charter of the city, without regard to reductions of penalty in cases of mitigation or involving stipulations.
Judgment. The term “judgment” means monies owed to the city as a result of a final order of the environmental control board imposing a civil penalty, either as a result of a default decision and order or after a hearing and finding of violation, that was entered in the civil court of the city or any other place provided for the entry of civil judgments within the state, pursuant to subparagraph (g) of paragraph 1 of subdivision d of section 1049-a of the charter of the city, no later than 90 days prior to the first day of the amnesty period and determining a respondent’s liability for a violation charged in accordance with the applicable penalty schedule.
Payor. The term “payor” means a person or entity who makes or intends to make the payment for an eligible judgment, other than a respondent subject to such eligible judgment.
Penalty schedule. The term “penalty schedule” means the schedule of penalties for particular violations of state or local law, or any rule or regulation promulgated thereunder, adopted as a rule by the environmental control board or by any city agency for violations adjudicated by the environmental control board pursuant to section 1049-a of the charter of the city, and published in the rules of the city, or any such predecessor schedule as may have applied on the date of the violation.
Resolve. The term “resolve” means, with respect to a judgment, to conclude all legal proceedings in connection with a notice of violation.
Respondent. The term “respondent” means a person or entity named as the subject of a notice of violation returnable to, or an eligible judgment issued by, the environmental control board.
State. The term “state” means the state of New York.
Temporary program. The term “temporary program” means the temporary program to resolve eligible judgments established pursuant to this local law.
b. Temporary program to resolve eligible judgments. 1. Subject to an appropriate concurring resolution of the environmental control board described in subdivision a of section 1049-a of the charter of the city, and notwithstanding any other provision of law to the contrary, the commissioner of finance shall establish a temporary program that permits respondents and payors who submit an application to such commissioner in a manner and form to be determined by such commissioner to resolve:
(a) eligible judgments resulting from a default decision and order by payment of base penalties without payment of default penalties and accrued interest; and
(b) eligible judgments entered after an adjudication and finding of violation by payment of 75 percent of the imposed penalties without payment of accrued interest.
2. Eligible judgments described in subparagraphs (a) and (b) of paragraph 1 of this subdivision may be resolved under the temporary program except as otherwise specified by subdivisions c and d of this section.
c. Requirements for the resolution of certain eligible judgments under the temporary program. 1. An eligible judgment resulting from a default decision and order shall not be resolved under the temporary program unless the base penalty of the violation that is the subject of the default decision and order can be determined by reviewing the underlying notice of the violation, default decision and order, or applicable penalty schedule.
2. An eligible judgment arising out of a notice of violation that includes an order requiring the correction of the violation shall not be resolved under the temporary program unless the application for resolution submitted pursuant to this local law includes a certificate of correction from the city agency that issued the notice of violation certifying that the condition cited in such notice of violation has been corrected to the satisfaction of such agency.
3. An eligible judgment for which a respondent or payor has, prior to the final day of the amnesty period, made payments, may be resolved under the temporary program if the respondent or payor submits an application for resolution of such eligible judgment to the commissioner of finance in a manner and form to be determined by such commissioner, provided that:
(a) if such payments were less than 75 percent of the imposed penalties, for an eligible judgment entered after an adjudication and finding of violation, or less than the base penalty, for an eligible judgment resulting from a default decision and order, such respondent or payor shall make payments such that the sum of such payments is equal to 75 percent of the imposed penalty, or such base penalty, as applicable, provided that such respondent or payor shall not be required to pay any accrued interest or default penalties, as applicable, in order to resolve such eligible judgment; and
(b) if such payments were greater than or equal to 75 percent of the imposed penalties, for an eligible judgment entered after an adjudication and finding of violation, or greater than or equal to the base penalty, for an eligible judgment resulting from a default decision and order, a payment of $1 is required to resolve such eligible judgment and the department of finance shall not be authorized to provide a refund to such respondent or payor.
d. Eligible judgments that may not be resolved under the temporary program. An eligible judgment shall not be resolved under the temporary program unless the department of finance receives payment of the amounts described in subdivision b or paragraph 3 of subdivision c of this section, as applicable, on or before the last day of the amnesty period.
e. Consequences of participation in the temporary program. 1. A payment from a respondent or payor to resolve an eligible judgment from a default decision and order under the temporary program shall be deemed an admission of liability for the violation that resulted in such default decision and order.
2. A resolution of an eligible judgment under the temporary program shall constitute a waiver of all legal and factual defenses to liability for the eligible judgment.
f. Certificates of correction. Nothing contained herein shall require a city agency to issue or approve certificates of correction or the equivalent if such agency does not have a program to do so as of the effective date of this local law.
g. Duration of the temporary program. The amnesty period shall be in effect for a period of 90 days during the fiscal year that commenced on July 1, 2026, such period to begin on a date determined by the commissioner of finance, provided that such amnesty period may be extended for an additional period of 90 days as determined by the commissioner of finance if such commissioner determines in a writing posted on the department of finance’s website that such an extension would encourage further resolution of eligible judgments, generate revenue for the city, and reduce the amount of outstanding debt owed to the city.
h. Judgments that remain unresolved after conclusion of the temporary program. After the amnesty period has concluded, any judgment that has not been resolved under the temporary program shall continue to have full legal effectiveness and enforceability regardless of whether it could have been resolved under the temporary program.
i. The provisions of this local law shall not limit the authority of the department of finance, when acting pursuant to a delegation from the environmental control board, to resolve any judgment not resolved through the temporary program, including judgments resulting from a default decision and order, pursuant to such policies adopted by the department of finance.
j. If a respondent or payor makes a payment on a judgment in an attempt to resolve a judgment through the temporary program but such judgment is not an eligible judgment, or a requirement for the resolution of such judgment set forth in subdivision c or d of this section is not satisfied, any such payment shall be deemed to be a partial payment towards such judgment.
k. Notification of public. The commissioner of finance shall publicize the temporary program so as to maximize public awareness of and participation in such program.
§ 2. This local law takes effect immediately.