A BUDGET BILL submitted by the Governor
in accordance with Article VII of the Constitution
AN ACT to amend the judiciary law, in relation to compensation of assistant counsel and paralegals in the defense of individuals (A); to amend chapter 887 of the laws of 1983, amending the correction law relating to the psychological testing of candidates for the position of correction officer, in relation to extending the effectiveness of such chapter (B); to amend the penal law and the vehicle and traffic law, in relation to victim assistance fees and mandatory surcharges (C); to amend chapter 829 of the laws of 1990, in relation to the elderly pharmaceutical insurance coverage program and to repeal sections 2 and 7 of chapter 829 of the laws of 1990, relating thereto (D); to amend the public health law, in relation to establishment of fees to support costs of regulating public water systems (E); to amend chapter 474 of the laws of 1996 amending the education law and other laws relating to rates for residential health care facilities, in relation to pharmacy payments, in relation to additional payments to certain facilities; to amend chapter 19 of the laws of 1998, amending the social services law relating to limiting the method of payment for prescription drugs under the medical assistance program, in relation to the effectiveness of such chapter (F); to amend chapter 649 of the laws of 1996, amending the public health law, the mental hygiene law and the social services law relating to authorizing the establishment of special needs plans, chapter 710 of the laws of 1988, amending the social services law and the education law relating to medical assistance eligibility of certain persons and providing for managed medical care demonstration programs, and chapter 165 of the laws of 1991, amending the public health law and other laws relating to establishing payments for medical assistance, in relation to extending the effectiveness of section 364-j of the social services law (G); to amend the social services law, in relation to securing adequate funds from counties and local governments to pay their share of Medicaid payments (H); to amend chapter 989 of the laws of 1958, relating to the temporary state commission of investigation, in relation to extending the provisions of such chapter (I); to amend the executive law, in relation to establishing a department of justice (J); to amend chapter 119 of the laws of 1997, relating to authorizing the department of health to establish certain payments to general hospitals, in relation to extending the authorization for the department of health to continue certain payments to general hospitals (K); to authorize the commissioner of mental health to appoint and remove officers and employees of certain psychiatric hospitals operated by the office of mental health (L); to amend the mental hygiene law, in relation to establishing the Norwich center for intensive treatment (M); to amend the military law, in relation to minimum pay for active duty (N); to amend the education law, in relation to the recruitment incentive and retention program for members of the New York state organized militia (O); to amend the military law, in relation to surplus property of the organized militia (P); to amend the vehicle and traffic law, in relation to registration plate reissuance fees and to repeal subdivision 2 of section 403 of such law relating thereto (Q); to amend the vehicle and traffic law, in relation to refunds of fees paid for driver’s licenses (R); to amend the vehicle and traffic law, in relation to fees for motor vehicle dealer registrations (S); and to amend chapter 55 of the laws of 1992 amending the tax law and other laws relating to taxes, surcharges, fees and funding, in relation to extending certain provisions relating to release on medical parole (T)
This bill contains various provisions needed to implement the Public Protection, Health and Mental Hygiene portion of the 2000-01 Executive Budget.
Part A. Capital defense. This bill allows for the use of assistant counsel and paralegals in capital cases handled by court-appointed private counsel, limits the rate of compensation to legal aid societies and other public defender organizations, and requires the Capital Defender Office to submit quarterly reports identifying the number of cases, their status or disposition, and the amount of State spending associated with each case.
The bill amends subdivision 5 of section 35-b of the Judiciary Law to expand the authority of the existing screening panels to develop rates of compensation for defense counsel and other necessary services to include assistant counsel and paralegals, and make such rates subject to approval by the Court of Appeals.
In addition, the bill amends subdivision 4 of section 35-b of the Judiciary Law to specify that the rate of compensation for legal aid societies, public defender organizations, and other not-for-profit organizations shall not exceed the rates for counsel established by section 35-b of the Judiciary Law; and requires the Capital Defender Office to submit a quarterly report showing, for each case, the names of the assigned counsel, case status, the use of assistant counsel, paralegals, investigative and expert and other services, and the amount of funds disbursed.
There is no specific provision in section 35-b of the Judiciary Law which allows for compensation for assistant counsel and paralegals in cases assigned to private attorneys. Likewise, current law makes no provisions for limiting the compensation paid to institutional defenders such as legal aid societies, nor requires the preparation and distribution of reports documenting case activity and other fiscal information.
This bill allows the court to establish fee schedules for assistant counsel and paralegal services in capital cases which have been assigned to private counsel. The use of such services to perform various routine or mundane tasks associated with defense counsel is believed to be more cost effective than the exclusive use of lead or associate counsel. Without this authorization, private attorneys handling capital cases have been effectively prohibited from using assistant counsel and paralegals.
By specifying that payment to not-for-profit organizations assigned by the courts should not exceed the rates paid to private attorneys, this bill allows for better control over the costs for defense services and will assist the Capital Defender Office in developing its contracts with such organizations. In addition, the requirement for the reporting of case history and fiscal information will allow for better monitoring of case activity and spending, and will assist the Division of the Budget in developing out-year funding estimates.
Part B. Psychological testing of correction officers. Effective immediately, this bill extends the expiration date of the psychological testing of correction officer candidates for an additional two years to April 1, 2002.
The psychological screening mandate was created by Chapter 887 of the Laws of 1983 and has routinely been extended, the last time by Chapter 32 of the Laws of 1998.
The Department of Correctional Services believes that psychological screening has successfully eliminated those correction officer candidates who present a risk to the security and safety of inmates, fellow officers, and civilians within State correctional facilities. Candidates disqualified as a result of the screening may appeal such a decision.
Part C. Crime victims surcharges and fees. This bill will increase the mandatory surcharges and crime victim assistance fees levied on offenders, to offset the increasing cost of crime victim services.
Effective April 1, 2000, this bill amends appropriate sections of the Penal and Vehicle and Traffic Laws to increase fines levied on convicted offenders. Specifically, the bill increases the crime victim assistance fee, set at five dollars since 1991, to ten dollars. In addition, the mandatory surcharge, ranging from $25 to $150 and assessed based on conviction type, is increased by approximately 34 percent. This increase is commensurate with the cost of living increase since the surcharge was last modified in 1990.
Section 60.35 of the Penal Law and Section 1809 of the Vehicle and Traffic Law mandate that persons convicted of felonies, misdemeanors, and violations pay a mandatory surcharge of $150, $85, and $40, respectively (with exceptions as noted in statute). Statute also requires that these offenders pay a five dollar crime victim assistance fee. Revenue from these sources is deposited to the Criminal Justice Improvement Account, which funds services and compensation to crime victims.
As the Crime Victims Board’s expenditures continue to grow as a result of increases in both the number of victims compensated and the number of programs funded, it is necessary to identify an appropriate and reliable source of additional revenue. The crime victim assistance fee and mandatory surcharge are an important and effective means of making offenders accountable for the harm caused by their offenses. As these fines have remained unchanged for nearly a decade, modification is both reasonable and appropriate.
PART D. Elderly Pharmaceutical Insurance Coverage. This bill will render the Elderly Pharmaceutical Insurance Coverage (EPIC) program more cost effective by repealing program benefits that have been deferred each year since 1991.
Effective April 1, 2000, this bill repeals enhanced program benefits enacted in 1990-91 requiring EPIC to establish a one time fee ($10) for lower income seniors and a one time deductible ($150) for moderate income seniors. The current EPIC fee structure is based on income. It varies from $10 to $240 annually for single enrollees and from $8 to $280 annually for married enrollees.
Chapter 913 of the Laws of 1986 established the EPIC program which provides assistance to non-Medicaid eligible seniors in their purchase of prescribed medications, and sets forth provisions regarding dispensing limits and a fair hearing process for individuals and participating provider pharmacies.
Chapter 829 of the Laws of 1990, originally scheduled to go into effect April 1, 1991, established measures to streamline the original program structure and provide more generous benefits to participants. These enhancements have been statutorily deferred for nine consecutive years.
Enhanced benefits scheduled to be implemented on April 1, 2000, are both unnecessary and cost prohibitive. Modified enhancements which were enacted in 1998 already lowered the fees and eliminated the sharp fee increase between the comprehensive and catastrophic programs, making the original 1990 enhancements unnecessary. Also, the income limits outlined in the 1990 enhancements are less than the current income limits, and some EPIC participants would become ineligible for the program if the original benefits enhancements were implemented.
Furthermore, the 1990 enhancements would require an additional $25.7 million in State spending, a 22 percent increase over the cost of continuing the program as currently structured. The 1990 enhancements have been deferred every year since they were passed because of the increased costs associated with them.
PART E. Water fees. This bill will ensure the quality and safety of the State’s drinking water by establishing a dedicated funding stream to support local government and State Department of Health (DOH) regulatory oversight of public drinking water supplies.
Effective April 1, 2000, this bill amends the Public Health Law to:
Public Health Law and regulations authorize the Commissioner of Health to supervise and regulate public water suppliers, adopt rules and regulations to protect all public drinking water supplies from contamination, and charge fees for related services.
This bill will provide the necessary fiscal resources to support increased State and local safe drinking water activities, as follows:
The increased water fee revenues will therefore support increased efforts to ensure the safety of public drinking water. Recent examples of ground runoff contaminants — including the deadly E. coli outbreak at the Washington County Fair — combined with increased Federal requirements for testing and surveillance, make this new fee both timely and appropriate.
PART F. Medicaid. This bill authorizes initiatives aimed at maximizing revenues and improving the delivery of health care services in the State’s Medicaid program.
The major provisions of the bill are as follows:
Subdivision one of section 211 of Chapter 474 of the Laws of 1996, as amended by Chapter 412 of the Laws of 1999 and Chapter 1 of the Laws of 1999, extends the intergovernmental transfer as it relates to hospitals.
Sections 2807-d and 3614-a of the Public Health Law and section 367-i of the Social Services Law relate to the collection of revenue from the provider assessment.
Section 4 of Chapter 19 of the Laws of 1998 carves pharmacy services from managed care programs and reimburses them on a fee-for-service basis. This bill extends that provision through March 31, 2001.
Enactment of this bill will have the following benefits:
PART G. Medicaid managed care program. This bill permanently extends the authority for the State’s Medicaid managed care program, mental health special needs plans, comprehensive HIV special needs plans and primary care partial capitation providers, who serve as case managers and coordinate the use of primary care services required by an enrollee.
Effective immediately, this bill makes permanent the statutory authority which would otherwise expire on July 1, 2000.
In July 1997, the Health Care Financing Administration (HCFA) approved New York State’s 1115 Waiver to mandate the enrollment of eligible individuals into Medicaid managed care. An important requirement of the Waiver is that State spending over the five-year waiver period (October 1997 through September 2002) must be less than spending would have been had there not been a waiver. This is known as Budget Neutrality.
Current State law gives the State the authority to implement the 1115 Managed Care Waiver.
Chapter 710 of the Laws of 1988 established managed medical care demonstration programs. Chapter 165 of the Laws of 1991 established the Medicaid managed care program directing local social services districts to develop contracts with managed care plans. Chapter 649 of the Laws of 1996 extended Chapter 165 of the Laws of 1991 and amended the Social Services Law to provide greater access to services and additional protections for beneficiaries enrolled in managed care plans. Chapter 649 of the Laws of 1996 also established authority to develop comprehensive HIV special needs plans and mental health special needs plans serving adults and children.
State and local governments have each saved approximately $280 million during the first two years of the Managed Care waiver through new Federal funding for the Home Relief population. If this bill is not enacted, a significant Federal disallowance would result because total spending would exceed the allowable limit under the Budget Neutrality calculation.
The Medicaid managed care program continues to enroll recipients into managed care plans, which assures access to quality care in a cost effective model. An extension is required to continue this program and primary care partial capitation managed care which provides medical case management.
This bill allows for the implementation of special needs plans which are intended to provide high quality specialized care for certain individuals that is not available in existing managed care plans. The Department of Health (DOH) and the Office of Mental Health (OMH) are in the processes of establishing these plans, which will offer specialized care in a cost effective manner.
PART H. Medicaid Escrow Account. This bill restructures the Medicaid Escrow Account process used by the State to pay the county (local) share of weekly Medicaid payments to health providers.
The Medicaid Escrow Account, in the custody of the State Comptroller and jointly administered by the Department of Health (DOH) and the Office of Temporary and Disability Assistance (OTDA), is used to pay the local governments’ share of weekly Medicaid payments. Certain State and Federal funds otherwise due the localities from DOH, OTDA and the Office of Children and Family Services (OCFS) are deposited in the Account to cover the local governments’ share of the weekly payment. Unlike the counties, New York City (NYC) electronically transfers funds to the State on a weekly basis to cover its local share.
The bill adds two new subdivisions to section 367-b of the Social Services Law to:
Section 365 of the Social Services Law defines local governments’ financial responsibilities for sharing in the cost of the Medicaid program.
Declining social services payments to the counties is making it increasingly difficult for the State to direct sufficient payments to the Escrow Account to cover the local share of Medicaid expenditures. Insolvency in the Account would jeopardize payments to providers, and/or result in the State covering the amount of the shortfall in the event of its default.
Granting State agencies and the Comptroller the authority to intercept a wider array of State and Federal funds otherwise due to the counties ensures the continued solvency of the Escrow Account and avoids disrupting the flow of reimbursement due to Medicaid providers. In addition, implementation of an electronic transfer process will assure an efficient flow of county funds necessary for paying their share of Medicaid payment obligations — similar to the benefits experienced by New York City.
Furthermore, this new electronic payment process should not pose a new burden on counties. A similar EFT process is currently used by the State and most counties for making nursing home and hospital intergovernmental transfer payments. In addition, delaying implementation until the beginning of most counties’ next fiscal years — January 1, 2001 — will give local governments adequate time to prepare for the new process.
PART I. State Investigation Commission. This bill extends the Temporary State Commission of Investigation for an additional two year period. The bill amends Chapter 989 of the Laws of 1958 to extend the sunset date for the Commission to April 30, 2002.
The Temporary State Commission, which was last extended in 1998 for a two year period, was created in 1958 and subsequently extended by numerous chapters.
The Commission is an independent, bipartisan fact-finding and evidence-gathering agency with the duty and power to investigate: (1) the execution and enforcement of the laws of the State, with particular reference to organized crime and racketeering, (2) the conduct of public officers and public employees, and (3) any matter concerning the public peace, public safety and public justice.
Continuation of this agency will help provide public protection on a statewide basis.
PART J. Criminal justice programs. This bill consolidates New York’s criminal justice agencies into a single Department of Justice to improve the coordination of criminal justice policies and activities, as well as provide for more efficient and cost-effective management.
Effective April 1, 2000, section 1(a) renames the Department of Correctional Services as the Division of Correctional Services and establishes a new Department of Justice (DOJ). Section 1(b) establishes that the Director of the new agency will be appointed by the Governor and confirmed by the Legislature except that the initial appointment will be the existing Commissioner of Criminal Justice Services without the need for further confirmation. Section 1(c) establishes that the Commissioner of the Division of Correctional Services will be appointed by the Governor and confirmed by the Legislature except that the initial appointment will be the existing Commissioner of the Department of Correctional Services without the need for further confirmation.
Section 1(d) states that the new Department will be responsible for all functions, powers, duties and obligations of the former Division of Criminal Justice Services, former Department of Correctional Services, former Division of Parole, former Division of State Police, former Division of Probation and Correctional Alternatives, former State Commission of Correction, former Crime Victims Board, and the former Office for the Prevention of Domestic Violence. Sections 2 through 9 transfer all functions, powers, duties and obligations of the former agencies to DOJ.
Section 10 establishes a temporary transition commission to develop a legislative proposal for additional statutory implementation of the consolidation proposed in this bill, to be submitted to the Legislature by December 1, 2000.
Section 11 requires the Director of DOJ to enter into a memorandum of understanding with other agencies affected by the merger of the existing criminal justice agencies to the extent necessary to fulfill the functions of the new agency, including the distribution of Federal funds and database systems support.
Section 12 amends Executive Law, Section 169, pertaining to the salaries of certain State officers, to include the Director of the new agency.
Section 13 addresses the transfer of employees from the existing agencies to the new DOJ consistent with Civil Service Law.
Sections 14 through 20 address all technical issues related to the transfer of functions to the auspices of DOJ, including: the transfer of records; the completion of unfinished business; the continuation of rules and regulations; reference to terms in existing laws; contracts and other documents, continuance of rights and remedies; and the assumption of responsibility for pending actions against the former agencies or commissioners.
Sections 21 and 22 authorize the transfer of all former appropriations and reappropriations, and assets and liabilities from the former agencies to DOJ.
Sections 23 and 24 give DOJ and other affected agencies the authority to promulgate regulations on an emergency as-needed basis to implement this bill.
Section 25 addresses the severability clause as it pertains to this agency.
Current Executive Law reflects the present structure of eight separate agencies. Section 169 of the Executive Law statutorily sets salaries for the various commissioners.
The creation of a single criminal justice agency will improve coordination of criminal justice policies and activities, and permit more efficient and cost-effective management. The primary benefits include:
PART K. Disproportionate share payments. This bill extends Chapter 119 of the Laws of 1997 through March 31, 2003 to allow voluntary hospitals to continue replacing, through Federal disproportionate share payments, reductions in State grant funds provided by the Office of Mental Health (OMH) and the Office of Alcoholism and Substance Abuse Services (OASAS).
Sections 1 and 2 extend the authorization of annual Federal disproportionate share (DSH) payments to Article 28 hospitals to support the provision of mental health and substance abuse services they provide which were formerly funded by State grants. These additional DSH payments are based on the value of 1997 State Aid grants to these hospitals provided by OMH and OASAS and are used to replace such funds.
The annual DSH payment amounts are contingent upon each hospital’s willingness to provide services similar to those that were previously funded by a State Aid grant, with all DSH amounts subject to the approval of the Division of the Budget. This bill requires a local share of Medicaid to be in the same proportion provided by the local governmental unit before the program was funded by DSH — for example, if a locality had paid x percent of the program costs when it was a State Aid program, it will now pay x percent of the DSH expenses.
The expiration date of the above provisions is extended from the current sunset date of March 31, 2000 to March 31, 2003. Chapter 119 of the Laws of 1997 is scheduled to expire on March 31, 2000.
The amount of DSH funding is determined by the Commissioners of OMH and OASAS based on the value of State Aid grants each hospital received in 1997. This bill thus preserves total funding of a hospital with the condition that it will be spent for the same program purpose as the State Aid grants. The increase in Federal aid allows the State to save a commensurate amount totaling approximately $14.0 million annually. In addition, local government units save approximately $2.4 million annually.
Although this initiative has yielded an annual savings to the State since its implementation, a three year extension is appropriate as the full impact of the program is still being determined.
PART L. Establish appointing authority for certain geographic groups of Office of Mental Health Psychiatric Centers. This bill authorizes the Commissioner of Mental Health to reassign employees within certain geographic groupings of psychiatric facilities to assure appropriate staffing of psychiatric facilities.
Section 1 of the bill notwithstands current law that established each psychiatric center as a separate appointing authority, and gives the Commissioner of Mental Health the authority to reassign employees to certain specified and geographically close psychiatric centers. The groupings are listed by region with the number of facilities in each region as follows: Long Island/Eastern New York Region (4), New York City Region (8), Southern Tier Region (2), Central New York Region (3), Western New York (2), and Mid-Hudson Region (6). Since there are no geographically close psychiatric centers near the Capital District Psychiatric Center, the Rochester Psychiatric Center and the St. Lawrence Psychiatric Center, these facilities will remain singular appointing authorities.
Section 2 specifies that the bill will be effective thirty days after it shall have become law.
Section 7.21 of the Mental Hygiene Law gives each OMH facility director appointment and removal authority only within his or her own facility. Neither OMH nor the facility director can reassign an employee to another facility without the employee’s consent. Subdivision (e) of Section 7.17 of the Mental Hygiene Law outlines specific requirements for notification in the event of significant service reductions for a particular State-operated hospital, including a one year notification, specific groups who must be notified, and the development of a strategic plan for minimizing the impact on the State workforce.
Currently, OMH is prevented from reassigning staff when census decline and staff attrition patterns create imbalances in staffing patterns from facility to facility. This proposal would allow the Commissioner of Mental Health to reassign excess staff to facilities in need of staff and make it more efficient to operate facilities. The groupings are designed to be in close proximity to one another to foster easier geographic transitions for employees being transferred.
In addition, to avoid any semblance of contravening court orders restricting significant service reductions at Pilgrim and Manhattan Psychiatric Centers, this bill notwithstands the current section of law which is the basis of these existing court orders. Since the reassignment of excess employees would be undertaken to re-balance staffing levels consistent with the number of operating beds, wards or census, it does not constitute a significant service reduction. Nevertheless, to avoid the issue completely, “significant service reduction” as used in Mental Hygiene Law 7.17(e), is expressly notwithstood. Additionally, this bill, if enacted, could be the basis of relief from the court orders relating to service reduction at various OMH facilities.
Other State agencies which have statewide appointing authority include: the Department of Correctional Services, the Division of State Police, and the Division of Parole.
PART M. Norwich Center for Intensive Treatment. This proposal creates a new Norwich Center for Intensive Treatment (CIT) within the Office of Mental Retardation and Developmental Disabilities (OMRDD). The new Norwich CIT would have a statewide catchment area and specialize in the treatment of persons with mental retardation and/or developmental disabilities who present a threat to the safety and security of others. It is currently under construction and scheduled to be fully open and operational in spring 2001.
Effective immediately, this bill amends §13.17(b) of the Mental Hygiene Law (MHL) to add the new Norwich CIT to the list of facilities for the care and treatment of the mentally retarded and developmentally disabled. This action would ensure that the Norwich facility director has the powers and authority necessary to operate this new facility which will serve a statewide population.
Under current law, directors of the entities enumerated in the MHL are authorized to exercise the independent powers established in §13.21 of the law. Unlike the other facilities listed in the MHL, which are responsible for the day-to-day operation of State and non-profit residential and day programs serving mainly consumers from within a specific geographic catchment area, the Norwich CIT would serve special populations from a statewide catchment area. Accordingly, Norwich should be structured as an independent, statewide facility.
The independent powers and authority afforded to facility directors, pursuant to §13.21 of the Mental Hygiene Law, are essential to operate a Center for Intensive Treatment (CIT), which currently exists only at Sunmount. It is the facility director who is responsible, by law, to maintain effective supervision of all parts of the facility and all persons employed therein, and to generally direct the care and treatment of its clients. Because the Sunmount Developmental Disabilities Services Office (DDSO) and CIT are located on the same campus, the Sunmount DDSO director currently oversees both operations.
This would not be the case at Norwich, which is within the geographic boundaries of the Broome DDSO catchment area but is situated some 30 miles north of the Broome DDSO’s administrative offices in Binghamton. Absent this bill, Norwich’s operational responsibilities would fall on the Broome DDSO Director, who, because of the geographic distance, would not be able to adequately supervise the day-to-day operations of the CIT.
PART N. Increase the National Guard pay rate. This bill increases the minimum pay rate for National Guard members who are called to State Active Duty service to $100 per day.
Effective April 1, 2000, this bill amends Section 210 of the Military Law to provide that National Guard members called to State Active Duty service shall be paid at their grade in accordance with the current Federal pay and allowance table or at a minimum of $100 per day, whichever is greater.
Section 210 of the Military Law currently stipulates that Guard members are to be paid the same pay and allowances that members of the appropriate force of the armed forces of the United States of corresponding rank and grade receive.
Currently, certain lower-ranking National Guard members are paid less than $100 per day when called to respond to gubernatorially-declared disasters. Private sector employers are not required to pay regular wages to their employees who are called to Guard duty, and some Guard members endure financial hardship while serving in active status. This bill would increase the minimum pay of activated Guard members, thereby enhancing the Division of Military and Naval Affairs’ member retention efforts and helping to ensure that adequate resources are available to respond to natural and man-made disasters.
PART O. Division of Military and Naval Affairs Recruitment Incentive and Retention Program. This bill enhances the recruitment efforts of the Division of Military and Naval Affairs (DMNA) by enabling recruits who have not completed all phases of military training to participate in the Division’s Recruitment Incentive and Retention Program.
Effective April 1, 2000, this bill amends Section 669-b of the Education Law to provide the Adjutant General with discretion to allow participants in the Division’s Recruitment and Retention Program to receive tuition benefits before successfully completing all aspects of their required basic or advanced individual training. The Education Law currently requires program participants to complete all aspects of their advanced individual training or commissioning before becoming eligible to receive tuition benefits.
This bill allows prospective National Guard members to enroll in higher education courses before completing all aspects of their required military training. In some cases, basic training for recruits can be delayed for reasons outside of the recruit’s control, and some specialized technical training courses are not scheduled for as much as 18 months after completion of a recruit’s basic training. This bill will enhance DMNA’s efforts to augment its troop strength by making National Guard membership more attractive to college-bound eligible recruits.
PART P. Division of Military and Naval Affairs disposition of obsolete and surplus property. This bill allows the Division of Military and Naval Affairs (DMNA) to preside over the sale of its obsolete or surplus property and requires that the proceeds of such sales be deposited into the agency’s Armory Rental Account.
Effective April 1, 2000, this bill amends section 185 of the Military Law to establish procedures for the disposition of obsolete or surplus property currently owned by DMNA and to direct that proceeds from such sales shall be deposited into the Special Revenue Other — Armory Rental Account.
The Military Law currently directs that State property that has become obsolete, useless or superfluous be disposed of in accordance with procedures detailed in the provisions of the State Finance Law.
This bill allows DMNA to utilize the proceeds from the disposal of obsolete, useless or surplus furnishings and equipment to support the establishment of a State military history museum. Such a museum will enable the State to properly preserve and display for public enjoyment its substantial collection of battle flags and other historical military artifacts.
PART Q. Retention of current license plate numbers during the license plate reissuance. This bill provides motorists the option of retaining their current license plate identification number for a one-time fee of up to $20 when the Department of Motor Vehicles (DMV) issues new license plates.
Effective April 1, 2000, the bill amends Section 403 of the Vehicle and Traffic Law (VTL) to allow the Commissioner to charge a one-time fee of up to $20 for motorists who wish to retain their current license plate identification number at the time DMV implements a statewide license plate reissuance. The fee would not be charged to motorists who retain specialty (or vanity) license plates and pay annual service charges pursuant to Sections 404 and 404-l of the VTL.
Existing law does not provide motorists the option of retaining their current license plate identification number upon statewide license plate reissuance.
The Department plans to issue new license plates beginning October 1, 2000. All motorists will receive new plates at the time of their registration renewal. The cost for new license plates will be $5.50, the same price charged since 1992. A recent Department survey indicates that many New York State motorists would be interested in retaining their current license plate number. The Department estimates that a one-time fee of up to $20 reflects a reasonable price for motorists interested in such an option. Currently, motorists are charged a $25 annual fee for this option.
PART R. Department of Motor Vehicles unused license privileges. This bill provides motorists the option of obtaining a refund for a portion of the proposed eight-year driver’s license.
Effective April 1, 2000, section 428 of the Vehicle and Traffic Law is amended to allow the Commissioner of Motor Vehicles to issue refunds for the second four-year period of an eight-year driver’s license. Licensed drivers would be eligible for the refunds if they retire their licenses prior to the end of the first four years of their license renewal, provided the application is made two months before the expiration of the first four-year period. Existing law does not provide motorists a refund option.
The Department of Motor Vehicles will begin issuing eight-year licenses in 2000. By allowing motorists a refund for the second four-year period, the Department ensures that motorists do not pay for unused license privileges.
PART S. Department of Motor Vehicles franchise dealers registration. This bill allows the imposition of a fee on registered dealers of new motor vehicles.
This bill amends Section 415 of the Vehicle and Traffic Law to impose an annual registration fee of $350 on franchise dealers of new vehicles and certain non-franchise dealers who sell new vehicles.
Chapter 451 of the Laws of 1999 created a Franchise Dealer registration requirement for dealers of new cars. The Department of Motor Vehicles (DMV) must now establish procedures for registering franchise dealers, and for verifying that the dealers have obtained surety bonding.
The Franchise Dealer legislation imposed new administrative costs on DMV. The Department will require nine additional staff to handle increased application processing, expand dealers’ audits to include bonding requirements, and respond to inquiries regarding the registration process. The Department estimates these costs at $300,000. This bill will permit DMV to recover these administrative costs by charging the dealers for such services.
PART T. Medical Parole. Effective immediately, this bill extends the expiration date of the medical parole law for an additional two years to April 10, 2002.
Medical parole was enacted as Chapter 55 of the Laws of 1992. The bill’s original expiration date of March 31, 1994 was extended to April 10,1996 by Chapter 61 of the Laws of 1994, to April 10,1998 by Chapter 48 of the Laws of 1996 and to April 10, 2000 by Chapter 38 of the Laws of 1998.
If this law sunset, a compassionate release program which has been carefully tailored to balance public safety concerns with both the humanitarian and fiscal reasons supporting an early release program for terminally ill, severely incapacitated inmates would cease. As of December 1998, 194 inmates have been released to medical parole.
BUDGET IMPLICATIONS:
Part A ensures a more efficient use of lead and assistant attorneys’ time in capital murder cases and mandates the reporting of fiscal information needed to monitor and forecast State costs associated with the provision of defense to indigent individuals accused of a capital crime.
PART B provides for the continuation of psychological testing, the cost of which ($448,000) has been included in the recommended budget for the Division of Correctional Services.
PART C provides $4.8 million in additional revenue to offset the increasing cost of victim compensation and services and to streamline claims processing procedures.
PART D permits a cost avoidance of $25.7 million annually by repealing the enhanced EPIC program benefits.
PART E supports the expanded Department of Health and other State agency activities related to the State water supply regulatory program, and State reimbursement for water supply protection activities carried out by local health departments. Fees of $6.5 million will be collected in SFY 2000-01, growing to $13.1 million in 2001-02. These funds will be used to offset the cost of current State and local activities as well as support major expanded water testing and monitoring activities, primarily at the local level.
PART F makes changes to Medicaid financing that will provide $61 million in revenue to the State.
PART G is needed to avoid a significant Federal disallowance if the State’s Managed Care program were not extended. New Federal funding secured through the Managed Care Waiver for the Home Relief population and administrative expenditures total $560 million for the first two years of the waiver — $280 million each for the State and local governments. If this bill is not enacted, total spending would exceed the allowable limit under the Budget Neutrality provision and would result in a Federal disallowance which is not reflected in the 2000-01 State Financial Plan.
PART H ensures the continued solvency of the Medicaid Escrow Account and timely payments to Medicaid providers.
PART I extends the statutory authority for the State Commission of Investigation, for which funding is recommended in the Executive Budget.
PART J achieves $10 million in savings by consolidating existing criminal justice agencies within the proposed Department of Justice.
PART K extends provisions authorizing continued use of Disproportionate Share (DSH) payments for certain services provided by Article 28 hospitals, to provide an annual net State savings totaling approximately $14.0 million. The two State agencies impacted are the Office of Mental Health (saving $7.5 million) and the Office of Alcoholism and Substance Abuse Services (saving $6.5 million). Local governments also will save a total of approximately $2.4 million annually.
PART L supports efforts of the Office of Mental Health to more efficiently and effectively manage its workforce, by authorizing the Commissioner to reassign staff among neighboring facilities. This supports the recommended 2000-01 funding, by providing an alternative to a reduction in force of 60 positions, valued at $833,000 in 2000-01.
PART M complements the recommended 2000-01 funding to support start-up costs for the Norwich Center for Intensive Treatment (CIT), by providing the authority for the Norwich CIT to operate as an independent entity serving a statewide catchment area.
PART N authorizes an increased minimum pay rate for National Guard members on active duty, for which the Budget includes $40,000 in appropriations.
PART O enhances the recruitment incentive for the Division of Military and Naval Affairs (DMNA), for which funding is included in the Executive Budget.
PART P provides the authority for DMNA to generate $500,000 in proceeds from the sale of obsolete or surplus property which will be deposited into the Special Revenue Other — Armory Rental Account for the purpose of supporting a military history museum.
PART Q authorizes a fee for retention of current license plate numbers, which is estimated to generate $3.0 million in General Fund revenue for 2000-01, based on a $20 fee; with a total of $12 million in increased revenue projected over the next three years.
PART R enables motorists to obtain a refund for a portion of the cost of the proposed eight-year driver’s license; the 2000-01 loss of $97,000 for refund requests is already assumed in the $4.8 million projected increase in license revenues.
PART S imposes a registration fee that will cover the projected $300,000 in administrative costs of registering franchise dealers of new motor vehicles pursuant to a 1999 law.
PART T continues the authority for Medical Parole, which will save the Division of Correctional Services approximately $1 million in outside hospital costs.
EFFECTIVE DATE:
This bill takes effect April 1, 2000; however, Parts B, I, K, Q and T take effect immediately; Part L takes effect thirty days after enactment; and Part G takes effect July 1, 2000.