Bill - 2003-04 PPGG


              STATE OF NEW YORK
      ________________________________________________________________________
 
          S. 1406                                                  A. 2106
 
              SENATE - ASSEMBLY
 
                              January 29, 2003
                                 ___________
 
  IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to  arti-
    cle  seven  of the Constitution -- read twice and ordered printed, and
    when printed to be committed to the Committee on Finance
 
  IN ASSEMBLY -- A BUDGET BILL, submitted  by  the  Governor  pursuant  to
    article  seven  of  the  Constitution -- read once and referred to the
    Committee on Ways and Means
 
  AN ACT to amend the general business law, in relation  to  allowing  the
    department  of  correctional services' division of correctional indus-
    tries to purchase inmate made goods, wares and  merchandise  from  the
    correctional  industry programs of the government of the United States
    or any other state of the United States (Part A); to amend the vehicle
    and traffic law, in relation to authorizing the commissioner of  motor
    vehicles  to  set  the  fee  for license plates (Part B); to amend the
    public lands law, in relation to expanding the allowable purposes  for
    which  unappropriated state lands may be transferred to municipalities
    (Part C); to amend the executive law, in relation  to  increasing  the
    fee  paid  by  nuclear  power generating plant operators in support of
    state and local radiological emergency preparedness requirements (Part
    D); to amend the vehicle and traffic law and the environmental conser-
    vation law, in relation to raising the fines associated with violating
    certain provisions of law (Part E); to amend chapter 152 of  the  laws
    of  2001,  amending the military law relating to military funds of the
    organized militia, in relation to the effectiveness thereof (Part  F);
    to  amend  the  correction  law, in relation to merit time allowances,
    earned eligibility and presumptive release; to amend the executive law
    and the penal law, in relation to presumptive release;  and  providing
    for the repeal of certain provisions upon expiration thereof (Part G);
    to  amend  the  penal  law, the correction law, the criminal procedure
    law, the executive law and the village law, in relation  to  fees  for
    sex  offender  registration  and  DNA  databank (Part H); to amend the
    executive law, in relation to criminal history surcharges (Part I); to
    amend the executive law, in relation  to  extending  the  duration  of
    certain  pilot  programs  for  the  prevention of automobile theft and
    insurance fraud; to amend chapter 55 of the laws of 1992, amending the
    tax law generally and enacting the omnibus revenue  act  of  1992,  in
    relation to extending the effectiveness of certain provisions thereof;
       S. 1406                             2                            A. 2106
 
         and  to  amend  chapter  57  of  the  laws of 2000, amending the state
         finance law, in relation to a report on  automobile  theft  prevention
         activities  of  the  state police, in relation to extending the effec-
         tiveness  of  certain  provisions thereof (Part J); to amend the penal
         law,  in  relation  to  aggregate  weight  standards  for   controlled
         substance  offenses (Part K); to amend the vehicle and traffic law, in
         relation to requiring criminal history checks (Part L); to amend chap-
         ter 887 of the laws of 1983, amending the correction law  relating  to
         the  psychological testing of candidates, in relation to extending the
         expiration of such chapter; to amend chapter 428 of the laws of  1999,
         amending the executive law and the criminal procedure law, relating to
         expanding  the  geographic  area of employment of certain police offi-
         cers, in relation to extending the  expiration  of  such  chapter;  to
         amend chapter 886 of the laws of 1972, amending the correction law and
         the  penal law relating to prisoner furloughs in certain cases and the
         crime of absconding therefrom, in relation to extending the expiration
         of such chapter; to amend chapter 261 of the laws  of  1987,  amending
         chapters  50,  53  and 54 of the laws of 1987, the correction law, the
         penal law and other chapters and laws relating to correctional facili-
         ties, in relation to extending the  expiration  of  such  chapter;  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  the expiration of such chapter; to amend chapter 339 of the
         laws of 1972, amending the correction law and the penal  law  relating
         to  inmate  work release, furlough and leave, in relation to extending
         the expiration of such chapter; to amend chapter 60  of  the  laws  of
         1994  relating  to certain provisions which impact upon expenditure of
         certain appropriations made by chapter 50 of the laws of 1994 enacting
         the state operations budget, in relation to extending  the  expiration
         of  such  chapter;  to amend chapter 554 of the laws of 1986, amending
         the correction law and the penal law relating to providing for  commu-
         nity  treatment  facilities  and  establishing the crime of absconding
         from the community treatment facility, in relation  to  extending  the
         expiration  of  such  chapter; to amend chapter 3 of the laws of 1995,
         amending the correction law and other laws relating to the  incarcera-
         tion  fee, in relation to extending the expiration of such chapter; to
         amend chapter 79 of the laws of 1989, amending the correction law  and
         other  laws  relating  to release and supervision of persons serving a
         definite sentence, in relation to extending  the  expiration  of  such
         chapter;  to  amend  chapter  907  of  the  laws of 1984, amending the
         correction law, the New York city criminal court act and the executive
         law relating to prison and jail housing and alternatives to  detention
         and incarceration programs, in relation to extending the expiration of
         such  chapter;  to amend chapter 166 of the laws of 1991, amending the
         tax law and other laws relating to taxes, in relation to extending the
         expiration of such chapter; to amend the vehicle and traffic  law,  in
         relation to extending certain provisions of such law; to amend chapter
         713 of the laws of 1988, amending the vehicle and traffic law relating
         to the ignition interlock device program, in relation to extending the
         expiration thereof; to amend chapter 435 of the laws of 1997, amending
         the  military  law  and  other laws relating to various provisions, in
         relation to extending the expiration date of the merit  provisions  of
         the  correction  law  and  the penal law of such chapter; and to amend
         chapter 412 of the laws of 1999, amending the civil practice  law  and
         rules  and  the  court  of  claims act relating to prisoner litigation
         reform, in relation to extending the expiration of the  inmate  filing
       S. 1406                             3                            A. 2106
 
         fee  provisions of the civil practice law and rules and general filing
         fee provision and inmate property claims exhaustion requirement of the
         court of claims act of such chapter (Part M); to amend the county law,
         the  judiciary law, the vehicle and traffic law, and the state finance
         law, in relation to assigned counsel; to amend the state finance  law,
         in relation to aggregate receipts from mandatory surcharges in certain
         cases;  to  amend the judiciary law, in relation to attorney registra-
         tion fees; to amend the vehicle and traffic law, in relation to  park-
         ing surcharges; to amend chapter 166 of the laws of 1991, amending the
         tax  law and other laws relating to taxes, in relation to extending of
         certain provisions contained therein; to amend the vehicle and traffic
         law, the judiciary law, the civil practice law  and  rules,  the  real
         property  tax  law,  the  surrogate's court procedure act, the uniform
         district court act, and the New York city civil court act, in relation
         to civil court fee increases; to amend the vehicle and traffic law, in
         relation to  driving  while  intoxicated  and  driving  while  ability
         impaired  surcharges;  and to repeal subdivision 4-a of section 510 of
         the vehicle and traffic law relating thereto (Part N);  to  amend  the
         civil service law, the labor law, the executive law, the state finance
         law,  the  public  authorities law, the retirement and social security
         law, the education law, the county  law  and  the  judiciary  law,  in
         relation  to  merging  the  public  employment relations board and the
         state employment relations board, and to repeal  section  702  of  the
         labor  law, relating to the state employment relations board (Part O);
         to amend the alcoholic beverage control law and the executive law,  in
         relation  to eliminating the state liquor authority and to provide for
         the continuation of the authority's powers and duties;  to  amend  the
         alcoholic  beverage  control  law,  in  relation to entering an unpaid
         civil penalty as a judgment; and to repeal certain provisions  of  the
         alcoholic beverage control law and the executive law, relating thereto
         (Part  P);  to amend the penal law and the vehicle and traffic law, in
         relation to victim assistance fees and  mandatory  surcharges  and  to
         amend  chapter  166 of the laws of 1991 amending the tax law and other
         laws relating to taxes, in relation to  extending  the  expiration  of
         certain  provisions  contained therein (Part Q); to amend the criminal
         procedure law, in relation to the admissibility as evidence  before  a
         grand jury of a sworn statement by a police officer (Part R); to amend
         the  executive law, in relation to the termination of a sentence (Part
         S); to amend the workers' compensation law and the state finance  law,
         in  relation  to  compensation and benefits paid by insolvent self-in-
         sured employers (Part T);  to  amend  the  general  business  law,  in
         relation  to  broker dealer statement fees and real estate syndication
         offering fees (Part U);  to  amend  the  abandoned  property  law,  in
         relation  to the treatment of uncashed state checks as unclaimed prop-
         erty, to claims for abandoned property representing monies  paid  into
         court  and  to  uniform  requirements for written notice by holders to
         owners of unclaimed property; to  amend  the  state  finance  law,  in
         relation  to  making  checks or drafts issued by the state of New York
         subject to the abandoned property law and to repeal certain provisions
         of the abandoned property law relating thereto (Part V); to amend  the
         executive  law,  the  insurance  law,  and  the  state finance law, in
         relation to motor vehicle law enforcement fees; to amend the executive
         law, in relation to the prevention of automobile theft  and  insurance
         fraud;  to  amend chapter 55 of the laws of 1992, amending the tax law
         generally and enacting the omnibus revenue act of 1992, in relation to
         extending the effectiveness of certain  provisions  relating  thereto;
       S. 1406                             4                            A. 2106
 
         and  to  amend  chapter 57 of the laws of 2000, amending the executive
         law relating to requiring the superintendent of state police to report
         yearly to the governor and the legislature the auto  theft  prevention
         activities  of  the state police for the previous year, in relation to
         the effectiveness of certain provisions of such chapter (Part  W);  to
         amend  chapter  411  of  the laws of 1999, amending the executive law,
         relating to permitting the  secretary  of  state  to  provide  special
         handling  for  all documents filed or issued by the division of corpo-
         rations and to permit additional levels of such expedited service,  in
         relation to extending the effectiveness thereof (Part X); to amend the
         legislative  law,  in  relation  to  the  registration fees charged to
         certain lobbyists (Part Y); to amend the executive law, in relation to
         transcripts of parole board release interviews and revocation hearings
         (Part Z); to amend the civil service law, in relation to contributions
         for health insurance coverage of state  employees  and  retired  state
         employees  (Part  AA);  to amend the state finance law, in relation to
         overpayments of salary (Part BB); to provide for the administration of
         certain funds and accounts related to the 2003-2004 budget;  to  amend
         the  state  finance law, in relation to the school tax relief fund and
         the debt reduction reserve fund and certificates of participation;  to
         amend  chapter  81  of  the laws of 2002 relating to providing for the
         administration of certain funds and accounts related to the  2002-2003
         budget, in relation to the expiration and repeal of certain provisions
         thereof;  to  amend  chapter  389  of the laws of 1997 relating to the
         financing of the correctional  facilities  improvement  fund  and  the
         youth  facility  improvement  fund,  in  relation  to  the issuance of
         certain bonds, notes and other obligations by the New York state urban
         development corporation; to amend the private housing finance law,  in
         relation  to housing  bonds and notes; to amend chapter 81 of the laws
         of 2002 relating to the financing of the Alfred E. Smith office build-
         ing and the Elk street parking garage located in the city  of  Albany,
         in  relation  to  the issuance of certain bonds, notes and other obli-
         gations by the New York state urban development corporation; to  amend
         the public authorities law, in relation to state environmental infras-
         tructure projects and certain indebtedness; to amend the state finance
         law  and  the  labor  law,  in  relation  to  the  interest assessment
         surcharge fund; to amend the state finance law, in relation  to  vari-
         able rates and swap limitations, debt reform and bond cap limitations;
         to  amend  the  public authorities law, in relation to the approval of
         indebtedness functions  of  the  New  York  state  public  authorities
         control  board;  to repeal certain provisions of the state finance law
         relating to issuance of certificates of participation;  and  providing
         for  the  repeal  of  certain provisions upon expiration thereof (Part
         CC); to amend the public authorities law,  in  relation  to  financial
         activities  of  the tobacco settlement financing corporation; to amend
         chapter 555 of the laws of 1989 amending the  public  authorities  law
         and  other  laws relating to establishing a new New York state infras-
         tructure trust fund, in relation to the effectiveness of such chapter;
         and to create the tobacco settlement financing corporation  act  (Part
         DD);  and to amend the civil service law, in relation to the consider-
         ation of ability to pay in the determination of arbitration awards; to
         amend the labor law, in relation to the determination of the wage paid
         in public construction projects; to amend the  general  municipal  law
         and  the  public  officers  law,  in  relation to the authorization of
         intermunicipal agreements; to amend  the  general  municipal  law,  in
         relation  to the merger and consolidation of municipal governments; to
       S. 1406                             5                            A. 2106
 
         amend the village law, in relation to adopting a plan for the  dissol-
         ution  of villages; to amend the state finance law, in relation to the
         payment of general purpose local government aid; to amend the  general
         municipal  law, the state finance law, the education law, the environ-
         mental conservation law, the highway law, the labor  law,  the  public
         authorities  law,  the  county  law, the facilities development corpo-
         ration act, chapter 560 of the laws of 1980  relating  to  authorizing
         the city of New York to adopt a waste management law, the urban devel-
         opment  corporation  act,  chapter 345 of the laws of 1968 relating to
         establishing a united nations development district and formulating and
         administering plans for the development of such district,  chapter  35
         of  the  laws  of 1979 relating to appropriating funds to the New York
         state urban development corporation for the  acquisition  and  initial
         planning  of  convention  and exhibition center facilities in New York
         county, chapter 735 of the laws of  1979  relating  to  providing  for
         construction of an American stock exchange/office facility in New York
         county and chapter 825 of the laws of 1987 amending the public author-
         ities  law and other laws relating to the construction and improvement
         of  court  facilities,  in  relation  to  requirements  for   separate
         contracts  for  certain  public works; to amend the civil practice law
         and rules, in relation to making certain technical corrections and  to
         amend  the  general  municipal  law, the public housing law, the state
         finance law and chapter 585 of the laws of 1939 relating to  the  rate
         of  interest  to be paid by certain public corporations upon judgments
         and accrued claims, in relation to the rate of interest on  judgments;
         to  amend  the  education  law, the public authorities law, the public
         housing law, the racing, pari-mutuel wagering and  breeding  law,  and
         the New York city health and hospitals corporation act, in relation to
         providing  for  the exclusive jurisdiction of the court of claims over
         claims against boards of education and school districts, the community
         colleges of the city university of New York, the New York city transit
         authority, the metropolitan transportation authority,  the  triborough
         bridge  and tunnel authority, the New York city housing authority, the
         New York city off-track betting corporation  and  the  New  York  city
         health  and hospitals corporation, and claims against the officers and
         employees thereof that arise out of their employment, for damages  for
         personal  injury,  injury to property and wrongful death; to amend the
         state finance law, the general municipal law, and the public  authori-
         ties  law, in relation to municipal investment opportunities; to amend
         chapter 130 of the laws of 1998 amending  the  general  municipal  law
         relating to temporary investments by local governments, in relation to
         making  the provisions of such chapter permanent; to amend the general
         municipal law, in relation to authorizing fees for police services and
         fees and charges for emergency medical services; to  amend  the  local
         finance law and the retirement and social security law, in relation to
         payments  of  contributions,  incentives and obligations; to amend the
         education law, the general municipal law, the public authorities  law,
         the state finance law and the local finance law, in relation to fiscal
         stability  and  fiscal  recovery  financing  by  local governments and
         establishing a comprehensive process of identification, oversight  and
         monitoring of and assistance to local governments undergoing financial
         difficulties,  and to provide for fiscal recovery financing; to repeal
         certain provisions of chapter 413 of the laws  of  1991  amending  the
         local finance law and other laws relating to providing relief to local
         governments  for certain mandated programs and services, and repealing
         section 101 of the general municipal law, section  135  of  the  state
       S. 1406                             6                            A. 2106
 
         finance  law,  section 151-a of the public housing law, subdivisions 1
         and 2 of section 458 of the education law, subdivisions  1  and  2  of
         section  482  of the education law, section 6281 of the education law,
         paragraph  f  of subdivision 27 of section 1680 of the public authori-
         ties law, paragraph b of subdivision 1 of section 1734 of  the  public
         authorities law, subdivision 2 of section 2350-o of the public author-
         ities  law,  paragraph  (a)  of  subdivision  6 of section 2466 of the
         public authorities law, subdivision 1 of section 2722  of  the  public
         authorities  law,  subdivisions  (d) and (e) of rule 4111 of the civil
         practice law and rules, section 11 of chapter 795 of the laws of 1967,
         relating to the construction  of  boards  of  cooperative  educational
         services  buildings,  section  9  of  chapter  892 of the laws of 1971
         amending the public authorities law relating to  construction  by  the
         dormitory  authority,  section  21  of chapter 464 of the laws of 1972
         amending the public authorities law and other laws relating to provid-
         ing facilities for community colleges and  the  powers  of  the  state
         university  trustees,  and  section  29  of chapter 337 of the laws of
         1972, amending the correction law and other laws relating  to  facili-
         ties for the department of correctional services; and to repeal subdi-
         visions  (a)  and  (b)  of  section 4545 of the civil practice law and
         rules, relating to the admissibility of collateral source  of  payment
         and  the  associated reduction of damage awards in certain malpractice
         actions and in certain actions for personal injury or  wrongful  death
         arising  out of an injury sustained by a public employee acting in the
         scope of his public employment or duties, relating thereto (Part EE)
 
         The People of the State of New York, represented in Senate and  Assem-
       bly, do enact as follows:
 
    1    Section  1.  This  act enacts into law major components of legislation
    2  which are necessary to implement the state fiscal plan for the 2003-2004
    3  state fiscal year.  Each component is wholly  contained  within  a  Part
    4  identified as Parts A through EE. The effective date for each particular
    5  provision contained within such Part is set forth in the last section of
    6  such Part. Any provision in any section contained within a Part, includ-
    7  ing  the  effective date of the Part, which makes reference to a section
    8  "of this act", when used in connection with that  particular  component,
    9  shall  be  deemed  to mean and refer to the corresponding section of the
   10  Part in which it is found. Section three of  this  act  sets  forth  the
   11  general effective date of this act.
 
   12                                   PART A
 
   13    Section 1. Section 69 of the general business law, as amended by chap-
   14  ter 166 of the laws of 1991, is amended to read as follows:
   15    §  69.  Sale  of  inmate  made goods. No goods, wares, or merchandise,
   16  manufactured, produced or mined wholly or in  part  by  inmates,  except
   17  inmates  or  persons  on parole, probation, or release, shall be sold in
   18  this state to any person, firm, association or corporation  except  that
   19  nothing  in  this  section shall be construed to forbid the sale of such
   20  goods produced in the correctional  facilities  of  this  state  to  the
   21  state, the government of the United States or to any state of the United
   22  States, or any political subdivision thereof, or for any public institu-
   23  tion  owned  or  managed  and  controlled by the state, or any political
   24  subdivision thereof, as provided in section one hundred  eighty-four  of
       S. 1406                             7                            A. 2106
 
    1  the  correction  law,  or any public corporation or eleemosynary associ-
    2  ation or corporation funded in whole or in part by any federal, state or
    3  local funds, or to forbid the sale, subject to the rules and regulations
    4  of  the  head  of  the  department  or other like governmental authority
    5  having jurisdiction, of any product resulting from occupational  therapy
    6  within any penal or correctional institution, as provided in section one
    7  hundred ninety-seven of the correction law.
    8    Nothing in this section shall be construed to forbid the sale of parts
    9  and  components  produced  by  inmate  labor  in  correctional  industry
   10  programs of the government of the United States  or  any  state  of  the
   11  United  States,  or any political subdivision thereof, to the department
   12  of correctional services' division of correctional industries for use in
   13  its manufacturing operations.
   14    A violation of the provisions  of  this  section  shall  constitute  a
   15  misdemeanor.
   16    §  2.  This  act  shall take effect immediately and shall be deemed to
   17  have been in full force and effect on and after April 1, 2003.
 
   18                                   PART B
 
   19    Section 1. Paragraph a of subdivision 3 of section 401 of the  vehicle
   20  and  traffic  law,  as  amended  by  chapter 166 of the laws of 1991, is
   21  amended to read as follows:
   22    a. Upon filing of such application and the payment of the fee  herein-
   23  after  provided,  the  commissioner shall assign to such motor vehicle a
   24  distinctive number and, without expense  to  the  applicant,  issue  and
   25  deliver  in  such  manner  as the commissioner may select to the owner a
   26  certificate of registration, in such  form  as  the  commissioner  shall
   27  prescribe, and two number plates at a place within the state of New York
   28  named  by  the applicant in his application.  A number plate, within the
   29  meaning of this chapter, may, in the discretion of the commissioner,  be
   30  a  plate  of  a  permanent  nature,  treated with reflectorized material
   31  according to specifications prescribed by the commissioner, and  with  a
   32  date tag attached to such plate or to the vehicle as prescribed by regu-
   33  lations  of the commissioner indicating the validity of the plate during
   34  a certain period and the issuance of such a number plate with such  date
   35  tag to a person possessing such a number plate shall be deemed the issu-
   36  ance of a number plate. [An additional] A fee, [not to exceed one dollar
   37  and  fifty  cents  above  the  actual cost of the plates, rounded to the
   38  nearest twenty-five cents,] set by the commissioner, shall  be  paid  to
   39  the commissioner whenever a set of reflectorized number plates is issued
   40  for  any vehicle for which a registration fee is normally charged except
   41  that, with respect to any number plate which is  specifically  requested
   42  by  the  applicant,  such  fee  shall  be  paid to the commissioner upon
   43  approval of such request. In  the  event  of  the  loss,  mutilation  or
   44  destruction  of any certificate of registration, any number plate or set
   45  of number plates whether with or without a date tag or tags, or any date
   46  tag or set of date tags provided for in this article,  the  owner  of  a
   47  registered  motor vehicle may file such statement and proof of the facts
   48  as the commissioner shall require, with a fee of three dollars,  in  the
   49  office  of the commissioner, or, unless and until the commissioner shall
   50  otherwise direct, in the office of the agent who issued the certificate,
   51  plate, plates, tag or tags and the commissioner or  his  agent,  as  the
   52  case  may  be,  shall  issue a duplicate or substitute.  It shall be the
   53  duty of every owner holding a certificate of registration to notify  the
   54  commissioner in writing of any change of residence of such person within
       S. 1406                             8                            A. 2106
 
    1  ten  days after such change occurs, and to inscribe on such certificate,
    2  in the place provided by the commissioner, a record of  such  change  of
    3  residence.
    4    § 2. This act shall take effect immediately.
 
    5                                   PART C
 
    6    Section  1.  Subdivision  1  of section 34 of the public lands law, as
    7  amended by chapter 703 of the laws  of  1994,  is  amended  to  read  as
    8  follows:
    9    1.  Such  commissioner  of  general  services  may, from time to time,
   10  transfer and convey to a city, incorporated village, town or county,  in
   11  consideration  of one dollar to be paid to the state of New York, and on
   12  such terms and conditions as such commissioner may impose, a part or all
   13  of any parcel or parcels of  unappropriated  state  lands  upon  certif-
   14  ication  that  such parcel or parcels are useful for local mental health
   15  facilities, mental retardation facilities, park, recreation, playground,
   16  reforestation, street [or], highway, or, provided the parcel or  parcels
   17  have  been  previously  devoted  to the use of the organized militia and
   18  disposed of in accordance with section one  hundred  eighty-six  of  the
   19  military  law  and  section  twenty-five  of  this  chapter,  government
   20  purposes, and that they will be properly improved and maintained for one
   21  or more of such purposes and provided  that  this  disposition  of  such
   22  parcel  or  parcels  is not otherwise prohibited. Certification shall be
   23  evidenced by a formal request from the board of estimate,  common  coun-
   24  cil,  village  board, town board or county board of supervisors, setting
   25  forth in detail the parcel or parcels to be  released,  transferred  and
   26  conveyed  and  the availability and usefulness of such parcel or parcels
   27  for one or more of such purposes. In  the  city  of  New  York  however,
   28  certification  shall be evidenced by a formal request from the mayor. In
   29  the event that lands transferred under the provisions  of  this  section
   30  are not properly improved and maintained for one or more of the purposes
   31  contemplated  by  this  section  by the city, village, town or county to
   32  which they were transferred, the  title  thereto  shall  revert  to  the
   33  people  of the state of New York, and the attorney-general may institute
   34  an action in the supreme court for a judgment declaring a  revesting  of
   35  such  title  in the state. Such commissioner may also transfer any unap-
   36  propriated state lands to the office of parks, recreation  and  historic
   37  preservation  or  the department of environmental conservation, upon the
   38  application of the commissioner thereof indicating that such unappropri-
   39  ated state lands are required for state park purposes within the area of
   40  jurisdiction of such office or department.
   41    § 2. This act shall take effect immediately.
 
   42                                   PART D
 
   43    Section 1. Paragraph (b) of subdivision 2 of section 29-c of the exec-
   44  utive law, as amended by chapter 169 of the laws of 1994, is amended  to
   45  read as follows:
   46    (b) The amount of such fee shall be determined annually by the commis-
   47  sion  taking  into account the costs of such responsibilities not other-
   48  wise provided for and unexpended amounts of previous fees  paid  by  any
   49  such  licensee.  In no event shall an annual fee for any facility exceed
   50  [five] nine hundred fifty thousand dollars. Such  fee,  which  shall  be
   51  payable to the commission on or before April first, shall be expended or
   52  distributed only by appropriation.
       S. 1406                             9                            A. 2106
 
    1    §  2.  This  act shall take effect April 1, 2003; provided however, if
    2  this act shall become a law after such date it shall take  effect  imme-
    3  diately and shall be deemed to have been in full force and effect on and
    4  after April 1, 2003.
 
    5                                   PART E
 
    6    Section 1. Subdivisions (b) and (e) of section 1800 of the vehicle and
    7  traffic  law,  subdivision  (b) as amended by chapter 202 of the laws of
    8  1995 and subdivision (e) as added by chapter 540 of the  laws  of  1993,
    9  are amended to read as follows:
   10    (b)  Every person convicted of a traffic infraction for a violation of
   11  any of the provisions of this chapter or of any ordinance,  order,  rule
   12  or  regulation  adopted  pursuant  to  section sixteen hundred thirty or
   13  sixteen hundred thirty-one for which another  penalty  is  not  provided
   14  shall  for  a first conviction thereof be punished by a fine of not more
   15  than one hundred fifty dollars or by  imprisonment  for  not  more  than
   16  fifteen  days or by both such fine and imprisonment; for a conviction of
   17  a second violation, both of which were  committed  within  a  period  of
   18  eighteen  months,  such  person  shall be punished by a fine of not more
   19  than [two hundred] three hundred dollars or by imprisonment for not more
   20  than forty-five days or by both  such  fine  and  imprisonment;  upon  a
   21  conviction of a third or subsequent violation, all of which were commit-
   22  ted within a period of eighteen months, such person shall be punished by
   23  a fine of not more than [three hundred] four hundred fifty dollars or by
   24  imprisonment  for  not  more  than  ninety days or by both such fine and
   25  imprisonment, except that a person convicted of a traffic infraction for
   26  a violation of paragraph one of subdivision (d) of section one  thousand
   27  one hundred eleven of this chapter outside of a city having a population
   28  of  one  million  or  more  shall,  for  a  first conviction thereof, be
   29  punished by a fine of not less than  [fifty]  seventy-five  dollars  nor
   30  more  than  [one  hundred  fifty]  two hundred twenty-five dollars or by
   31  imprisonment for not more than fifteen days or by  both  such  fine  and
   32  imprisonment; for a conviction of a second violation, both of which were
   33  committed  within  a  period  of  eighteen  months, such person shall be
   34  punished by a fine of not less than one hundred fifty dollars  nor  more
   35  than [two hundred fifty] three hundred seventy-five dollars or by impri-
   36  sonment  for  not  more  than  forty-five  days or by both such fine and
   37  imprisonment; upon a conviction of a third or subsequent violation,  all
   38  of  which were committed within a period of eighteen months, such person
   39  shall be punished by a fine of not less than [two hundred  fifty]  three
   40  hundred  seventy-five  dollars  nor  more  than [four hundred fifty] six
   41  hundred seventy-five dollars or by imprisonment for not more than ninety
   42  days or by  both  such  fine  and  imprisonment  except  that  a  person
   43  convicted for a violation of paragraph one of subdivision (d) of section
   44  one  thousand  one  hundred  eleven  of  this chapter shall, for a first
   45  conviction thereof, be punished by a fine of not less than  one  hundred
   46  fifty  dollars  nor more than [three hundred] four hundred fifty dollars
   47  or by imprisonment for not more than fifteen days or by both  such  fine
   48  and  imprisonment; for a conviction of a second violation, both of which
   49  were committed within a period of eighteen months, such person shall  be
   50  punished  by a fine of not less than [two hundred] three hundred dollars
   51  nor more than [five hundred] seven hundred fifty dollars or by imprison-
   52  ment for not more than forty-five days or by both such fine  and  impri-
   53  sonment;  upon  a  conviction of a third or subsequent violation, all of
   54  which were committed within a period of  eighteen  months,  such  person
       S. 1406                            10                            A. 2106
 
    1  shall  be  punished  by  a  fine  of  not less than [five hundred] seven
    2  hundred fifty dollars nor more than one thousand five hundred dollars or
    3  by imprisonment for not more than ninety days or by both such  fine  and
    4  imprisonment.
    5    (e) Every person convicted of a violation of the provisions of section
    6  eleven  hundred  forty-four of this chapter shall for a first conviction
    7  thereof be punished by a fine of not more than [one hundred  fifty]  two
    8  hundred  seventy-five  dollars  or  by  imprisonment  for  not more than
    9  fifteen days or by both such fine and imprisonment. For a conviction  of
   10  a  second  violation,  both  of  which were committed within a period of
   11  eighteen months, such person shall be punished by a  fine  of  not  more
   12  than  [three  hundred] four hundred fifty dollars or by imprisonment for
   13  not more than forty-five days or by both such fine and imprisonment. For
   14  a conviction of a third violation and all subsequent violations, all  of
   15  which  were  committed  within  a period of eighteen months, such person
   16  shall be punished by a fine  of  not  more  than  [five  hundred]  seven
   17  hundred  fifty  dollars or by imprisonment for not more than ninety days
   18  or by both such fine and imprisonment.
   19    § 2. Subdivisions 1 and 2 of section 1801 of the vehicle  and  traffic
   20  law,  subdivision  1  as  amended  by chapter 61 of the laws of 1989 and
   21  subdivision 2 as added by chapter 816 of the laws of 1986,  are  amended
   22  to read as follows:
   23    1.  Every  person convicted of a misdemeanor for a violation of any of
   24  the provisions of this chapter for which another penalty is not provided
   25  shall for a first conviction thereof be punished by a fine of  not  more
   26  than [two hundred] three hundred dollars or by imprisonment for not more
   27  than thirty days or by both such fine and imprisonment; for a conviction
   28  or  a  second violation, both of which were committed within a period of
   29  eighteen months, such person shall be punished by a  fine  of  not  more
   30  than [three hundred fifty] five hundred twenty-five dollars or by impri-
   31  sonment for not more than ninety days or by both such fine and imprison-
   32  ment; upon a conviction of a third or subsequent violation, all of which
   33  were  committed within a period of eighteen months, such person shall be
   34  punished by a fine of not more than [seven hundred fifty]  one  thousand
   35  one hundred twenty-five dollars or by imprisonment for not more than one
   36  hundred  eighty  days or by both such fine and imprisonment, except that
   37  any fine imposed upon  conviction  of  a  violation  of  section  twelve
   38  hundred  twelve  of  this  chapter  shall  be  not less than one hundred
   39  dollars.
   40    2. Notwithstanding the provisions of subdivision one of this  section,
   41  every  operator  or  registered owner of a motor vehicle having a regis-
   42  tered maximum gross weight of eighteen thousand pounds or more convicted
   43  of a misdemeanor for a violation of the provisions of the closing  para-
   44  graph  of  subdivision one of section three hundred seventy-five of this
   45  chapter with respect to the knowing disconnection of any set of  service
   46  brakes  on  such  motor vehicle, shall be punished by a fine of not more
   47  than [one thousand five hundred] two thousand two hundred fifty dollars.
   48    § 3. Subdivisions 11 and 12 of section 509 of the vehicle and  traffic
   49  law,  subdivision  11  as  added  by chapter 61 of the laws of 1989, and
   50  subdivision 12 as amended by chapter  429  of  the  laws  of  1994,  are
   51  amended to read as follows:
   52    11.  A  violation of any provision of this section shall be punishable
   53  by a fine of not less than [fifty]  seventy-five  nor  more  than  [two]
   54  three  hundred  dollars,  or  by  imprisonment for not more than fifteen
   55  days, or by both such fine and imprisonment  except,  if  the  violation
   56  consists  of  failure  to  renew  a license which was valid within sixty
       S. 1406                            11                            A. 2106
 
    1  days, the fine shall be not less than [twenty-five] forty  dollars,  and
    2  except  that  a  violation of subdivision seven or eight of this section
    3  shall be punishable by a fine of  not  more  than  [fifty]  seventy-five
    4  dollars.
    5    12. A violation of subdivision two of this section involving the oper-
    6  ation for hire of any vehicle as a taxicab, livery as defined in section
    7  one  hundred  twenty-one-e  of  this  chapter,  coach, limousine, van or
    8  wheelchair accessible van or tow truck  within  the  state  without  the
    9  appropriate  license therefor, shall be punishable by a fine of not less
   10  than [one hundred fifty] two hundred twenty-five dollars nor  more  than
   11  [three  hundred]  four  hundred  fifty  dollars. A person who operates a
   12  vehicle for hire without the appropriate license  therefor  pursuant  to
   13  subdivision  two  of  this section after having been convicted of such a
   14  violation within the preceding five years shall be punished by a fine of
   15  not less than [two hundred fifty] three hundred seventy-five dollars nor
   16  more than [five hundred] seven hundred fifty dollars. A person who oper-
   17  ates a vehicle for hire without the appropriate license therefor  pursu-
   18  ant  to  subdivision two of this section after having been convicted two
   19  or more times of such a violation within the preceding ten  years  shall
   20  be  punished  by  a  fine  of not less than [five hundred] seven hundred
   21  fifty dollars nor more than one thousand five hundred dollars.
   22    § 4. Paragraph 1 of subdivision (h) of section 1180 of the vehicle and
   23  traffic law, as amended by chapter 173 of the laws of 1990, the  opening
   24  paragraph  as  amended by chapter 484 of the laws of 1999, is amended to
   25  read as follows:
   26    1. Every person convicted of a violation of subdivision (b)  or  para-
   27  graph  one  of  subdivision  (d)  of  this  section shall be punished as
   28  follows:
   29    (i) Where the court or tribunal records or enters that the speed  upon
   30  which  the  conviction  was based exceeded the applicable speed limit by
   31  not more than ten miles per hour, by a fine of not  less  than  [thirty]
   32  forty-five nor more than one hundred fifty dollars;
   33    (ii) Where the court or tribunal records or enters that the speed upon
   34  which  the  conviction  was based exceeded the applicable speed limit by
   35  more than ten miles per hour but not more than thirty miles per hour, by
   36  a fine of not less than [sixty] ninety nor more than [two] three hundred
   37  dollars or by imprisonment for not more than fifteen  days  or  by  both
   38  such fine and imprisonment;
   39    (iii)  Where  the  court  or tribunal records or enters that the speed
   40  upon which the conviction was based exceeded the applicable speed  limit
   41  by  more  than  thirty  miles  per  hour, by a fine of not less than one
   42  hundred [twenty] eighty nor more than [four] six hundred dollars, or  by
   43  imprisonment  for  not  more  than thirty days, or by both such fine and
   44  imprisonment.
   45    § 5. Paragraph 2 of subdivision (h) of section 1180 of the vehicle and
   46  traffic law, as amended by chapter 173 of the laws of 1990,  is  amended
   47  to read as follows:
   48    2.  Every person convicted of a violation of subdivision (a) or (e) of
   49  this section shall be punished by a  fine  of  not  less  than  [thirty]
   50  forty-five  nor  more than one hundred fifty dollars, or by imprisonment
   51  for not more than fifteen days, or by both such fine and imprisonment.
   52    § 6. Paragraph 3 of subdivision (h) of section 1180 of the vehicle and
   53  traffic law, as amended by chapter 173 of the laws of 1990, the  opening
   54  paragraph  as  amended by chapter 432 of the laws of 1997, is amended to
   55  read as follows:
       S. 1406                            12                            A. 2106
 
    1    3. Every person convicted of a violation of paragraph two of  subdivi-
    2  sion  (d),  subdivision  (f) or (g) of this section shall be punished as
    3  follows:
    4    (i)  Where the court or tribunal records or enters that the speed upon
    5  which the conviction was based exceeded the applicable  speed  limit  by
    6  not  more  than  ten  miles per hour, by a fine of not less than [sixty]
    7  ninety nor more than one hundred fifty dollars;
    8    (ii) Where the court or tribunal records or enters that the speed upon
    9  which the conviction was based exceeded the applicable  speed  limit  by
   10  more  than  ten miles per hour, but not more than thirty miles per hour,
   11  by a fine of not less than one hundred [twenty]  eighty  nor  more  than
   12  [two]  three hundred dollars or by imprisonment for not more than thirty
   13  days, or by both such fine and  imprisonment,  provided,  however,  that
   14  where the vehicle is either (A) in violation of any rules or regulations
   15  involving  an  out-of-service defect relating to brake systems, steering
   16  components and/or coupling devices, or (B) transporting  flammable  gas,
   17  radioactive  materials  or  explosives,  the  fine  shall be [two] three
   18  hundred dollars or imprisonment for not more than thirty days,  or  both
   19  such fine and imprisonment;
   20    (iii)  Where  the  court  or tribunal records or enters that the speed
   21  upon which the conviction was based exceeded the applicable speed  limit
   22  by  more  than  thirty  miles  per hour, by a fine of not less than [two
   23  hundred forty] three hundred sixty nor  more  than  [four]  six  hundred
   24  dollars or by imprisonment for not more than thirty days or by both such
   25  fine  and  imprisonment,  provided,  however,  that where the vehicle is
   26  either (A) in violation of any rules or regulations involving an out-of-
   27  service defect relating to brake  systems,  steering  components  and/or
   28  coupling devices, or (B) transporting flammable gas, radioactive materi-
   29  als  or  explosives,  the  fine  shall  be [four] six hundred dollars or
   30  imprisonment for not more than thirty days, or both such fine and impri-
   31  sonment.
   32    § 7. Paragraph 4 of subdivision (h) of section 1180 of the vehicle and
   33  traffic law, as added by chapter 484 of the laws of 1999, is amended  to
   34  read as follows:
   35    4.  Every  person  convicted of a violation of subdivision (c) of this
   36  section when such violation occurs in  a  school  speed  zone  during  a
   37  school day between the hours of seven o'clock A.M. and six o'clock P.M.,
   38  shall be punished as follows:
   39    (i)  Where the court or tribunal records or enters that the speed upon
   40  which the conviction was based exceeded the applicable  speed  limit  by
   41  not  more  than  ten  miles per hour, by a fine of not less than [sixty]
   42  ninety nor more than [two] three hundred dollars;
   43    (ii) Where the court or tribunal records or enters that the speed upon
   44  which the conviction was based exceeded the applicable  speed  limit  by
   45  more than ten miles per hour but not more than thirty miles per hour, by
   46  a fine of not less than one hundred [twenty] eighty nor more than [four]
   47  six hundred dollars or by imprisonment for not more than fifteen days or
   48  by both such fine and imprisonment;
   49    (iii)  Where  the  court  or tribunal records or enters that the speed
   50  upon which the conviction was based exceeded the applicable speed  limit
   51  by  more  than  thirty  miles  per hour, by a fine of not less than [two
   52  hundred forty] three hundred sixty nor more than  [eight]  one  thousand
   53  two  hundred  dollars, or by imprisonment for not more than thirty days,
   54  or by both such fine and imprisonment.
       S. 1406                            13                            A. 2106
 
    1    § 8. Paragraph 5 of subdivision (h) of section 1180 of the vehicle and
    2  traffic law, as amended by chapter 173 of the laws of 1990 and as renum-
    3  bered by chapter 484 of the laws of 1999, is amended to read as follows:
    4    5.  Notwithstanding  the foregoing provisions of this subdivision, the
    5  maximum fine provided herein for the violation for which the  person  is
    6  sentenced may be increased by an additional one hundred fifty dollars if
    7  the  conviction  is  for  a  second violation of any subdivision of this
    8  section where both violations were committed within  an  eighteen  month
    9  period, and the maximum fine provided herein for the violation for which
   10  the  person  is sentenced may be increased by an additional [two hundred
   11  fifty] three hundred seventy-five dollars if the  conviction  is  for  a
   12  third  or  subsequent violation of any subdivision of this section where
   13  all such violations were committed  within  an  eighteen  month  period.
   14  Where  an  additional  fine is provided by this paragraph, a sentence of
   15  imprisonment for not more than thirty days may be imposed in place of or
   16  in addition to any fine imposed.
   17    § 9. Subdivisions 1 and 2 of section 1182 of the vehicle  and  traffic
   18  law,  subdivision  1  as  amended by chapter 247 of the laws of 1991 and
   19  subdivision 2 as amended by chapter 594 of the laws of 1987, are amended
   20  to read as follows:
   21    1. Except as provided in section eleven hundred eighty-two-a  of  this
   22  article  or  section  sixteen  hundred  thirty,  sixteen  hundred forty,
   23  sixteen hundred forty-two or sixteen hundred sixty of this  chapter,  no
   24  races,  exhibitions  or  contests  of  speed shall be held and no person
   25  shall engage in or aid or abet in  any  motor  vehicle  or  other  speed
   26  contest  or exhibition of speed on a highway. Such event, if held, shall
   27  be fully and efficiently patrolled for the entire  distance  over  which
   28  such  race,  exhibition or contest for speed is to be held. Participants
   29  in a race, exhibition or contest of speed are exempted  from  compliance
   30  with  any  traffic laws otherwise applicable thereto, but shall exercise
   31  reasonable care. A violation of any of the provisions  of  this  section
   32  shall  constitute a misdemeanor and be punishable by imprisonment of not
   33  more than thirty days or a fine of not less  than  [two]  three  hundred
   34  dollars  nor  more  than  [three hundred fifty] five hundred twenty-five
   35  dollars, or both such fine and imprisonment.
   36    2. A second conviction within twelve months of  a  violation  of  this
   37  section  shall be punishable by imprisonment of not more than six months
   38  or a fine of not less than [three hundred fifty]  five  hundred  twenty-
   39  five  dollars  nor more than [five hundred] seven hundred fifty dollars,
   40  or both such fine and imprisonment.
   41    § 10. Subdivision 18 of section 401 of the vehicle and traffic law, as
   42  amended by chapter 61 of the  laws  of  1989,  is  amended  to  read  as
   43  follows:
   44    18. A violation of subdivision one of this section shall be punishable
   45  by  a  fine  of  not  less than [fifty] seventy-five nor more than [two]
   46  three hundred dollars, or by imprisonment  for  not  more  than  fifteen
   47  days,  or  by  both  such fine and imprisonment except, if the violation
   48  consists of failure to renew a registration which was valid within sixty
   49  days, the fine shall be not less than  [twenty-five]  forty  dollars.  A
   50  violation of subdivision seven or eight of this section shall be punish-
   51  able  by  a  fine  of not less than one hundred fifty nor more than [two
   52  hundred fifty] three hundred seventy-five dollars,  or  by  imprisonment
   53  for  not  more  than thirty days, or by both such fine and imprisonment,
   54  for the first offense, except where the violation was committed  with  a
   55  vehicle  having  a  maximum  gross weight of less than eighteen thousand
   56  pounds the violation should be punished by  a  fine  of  not  less  than
       S. 1406                            14                            A. 2106
 
    1  [twenty-five]  forty  nor  more  than  [two hundred fifty] three hundred
    2  seventy-five dollars; by a fine of not less  than  [two  hundred  fifty]
    3  three  hundred  seventy-five  dollars nor more than [five hundred] seven
    4  hundred  fifty dollars, or by imprisonment for not more than sixty days,
    5  or by both such fine and imprisonment,  for  the  second  or  subsequent
    6  offense; provided that a sentence or execution thereof for any violation
    7  under  this  subdivision may not be suspended. For any violation of said
    8  subdivision seven or eight of this  section,  the  registration  of  the
    9  vehicle may be suspended for a period of not less than ten days nor more
   10  than  six months whether at the time of the violation the vehicle was in
   11  charge of the owner or his agent. The provisions of section five hundred
   12  ten of this chapter shall apply to such suspension except  as  otherwise
   13  provided herein.
   14    §  11.  Subdivisions 1 and 5 of section 319 of the vehicle and traffic
   15  law, subdivision 1 as amended by chapter 294 of the  laws  of  1980  and
   16  subdivision  5 as amended by chapter 61 of the laws of 1989, are amended
   17  to read as follows:
   18    1. Any owner of a motor vehicle registered in this state, or an unreg-
   19  istered motor vehicle, who shall operate such motor vehicle or permit it
   20  to be operated in this state without having in full force and effect the
   21  financial security required by the provisions of this  chapter  and  any
   22  other  person  who  shall operate in this state any motor vehicle regis-
   23  tered in this state, or an unregistered motor vehicle,  with  the  know-
   24  ledge that the owner thereof does not have in full force and effect such
   25  proof  of financial security, except a person who, at the time of opera-
   26  tion of such motor vehicle,  had  in  effect  an  operator's  policy  of
   27  liability  insurance, as defined in section three hundred eighteen, with
   28  respect to his operation of such vehicle shall be guilty  of  a  traffic
   29  infraction  and  upon  conviction may be fined not less than one hundred
   30  fifty dollars or more than one thousand five hundred dollars or  may  be
   31  imprisoned  for  not  more than fifteen days or both. In addition to the
   32  penalties herein set forth, such person,  upon  conviction,  shall  also
   33  become  liable  for  payment  to  the  department  of  the civil penalty
   34  provided in subdivision five of this section.
   35    5. The civil penalty for  a  violation  of  subdivision  one  of  this
   36  section shall be [five hundred] seven hundred fifty dollars.
   37    §  12. Paragraph d of subdivision 10 of section 375 of the vehicle and
   38  traffic law, as added by chapter 827 of the laws of 1990, is amended  to
   39  read as follows:
   40    d.  Every new passenger-type motor vehicle, except a motorcycle, manu-
   41  factured for sale in New York state on or after January  first,  in  the
   42  year next succeeding the effective date of this paragraph shall be manu-
   43  factured  with  an  interior  rear-view mirror of the selective position
   44  prismatic type with a reflectance value in the night driving position of
   45  at least four percent; or its functional  equivalent.  For  purposes  of
   46  this  section, "passenger-type motor vehicle" shall mean any motor vehi-
   47  cle with a seating capacity of not more than fifteen adults, not includ-
   48  ing the driver, that is equipped with one or more  rear  windows.    Any
   49  violation  of the provisions of this paragraph by any manufacturer shall
   50  constitute an offense and shall be punishable by a  civil  fine  of  not
   51  more than [five hundred] seven hundred fifty dollars for each offense.
   52    §  13. Paragraph (f) of subdivision 28-f of section 375 of the vehicle
   53  and traffic law, as added by chapter 761 of the laws of 1975, is amended
   54  to read as follows:
   55    (f) No registered owner shall permit a motor vehicle, required to have
   56  an exhaust emission control device in proper working condition  pursuant
       S. 1406                            15                            A. 2106
 
    1  to  the provisions of this subdivision, to be operated in the portion of
    2  the state to which this subdivision is applicable, unless  such  vehicle
    3  is  equipped  with an approved exhaust emission control device in proper
    4  working  condition.  Every person convicted of a violation of this para-
    5  graph shall for a first violation thereof with respect to  a  particular
    6  motor  vehicle  be  punished  by  a fine of [five hundred] seven hundred
    7  fifty dollars.  Such fine may not be waived, suspended or in  any  other
    8  manner  not  levied,  except  that  [three  hundred]  four hundred fifty
    9  dollars of such fine may  be  waived  upon  presentation  of  acceptable
   10  evidence  prior  to  the  final  determination of the violation that the
   11  device required pursuant to paragraph (a) of this subdivision  has  been
   12  installed  on  the  vehicle  and  is  in proper working condition. Every
   13  person convicted of a second or subsequent violation with respect  to  a
   14  particular  vehicle  shall be punished by a fine of [five hundred] seven
   15  hundred fifty dollars, which fine may not be waived, suspended or in any
   16  other manner not levied.
   17    § 14. Subdivision 32 of section 375 of the vehicle and traffic law, as
   18  amended by chapter 61 of the  laws  of  1989,  is  amended  to  read  as
   19  follows:
   20    32.  The  violation  of  any  of  the  provisions of this section with
   21  respect to adequate brakes except those relating to  emergency  or  hand
   22  brakes  shall  constitute  a misdemeanor and the violation of any of the
   23  other provisions of this section, including those relating to  emergency
   24  or  hand brakes, shall be punishable by a fine not exceeding one hundred
   25  fifty dollars or by imprisonment for not exceeding thirty  days,  or  by
   26  both such fine and imprisonment, except as herein otherwise provided.
   27    §  15.  Paragraph  (b) of subdivision 47 of section 375 of the vehicle
   28  and traffic law, as added by chapter 856 of the laws of 1990, is amended
   29  to read as follows:
   30    (b) Any person convicted of a violation of this section  shall  for  a
   31  first  conviction  thereof  be  punished  by a fine of up to one hundred
   32  fifty dollars; for a conviction of a second  violation,  both  of  which
   33  were  committed within a period of eighteen months, such person shall be
   34  guilty of a traffic infraction and shall be punished by a  fine  of  not
   35  less  than  one  hundred  fifty  dollars  and  not more than [two] three
   36  hundred dollars; upon conviction of a third or subsequent violation, all
   37  of which were committed within a period of eighteen months, such  person
   38  shall  be guilty of a traffic infraction and shall be punished by a fine
   39  of not less than [two hundred fifty] three hundred seventy-five  dollars
   40  and not more than [five hundred] seven hundred fifty dollars.
   41    § 16. Subdivision 18 of section 385 of the vehicle and traffic law, as
   42  amended  by  chapter  549  of  the  laws  of 1985, is amended to read as
   43  follows:
   44    18. Except as provided in subdivision nineteen of  this  section,  the
   45  violation  of  the  provisions  of  this  section  including a violation
   46  related to the operation, within a city not wholly included  within  one
   47  county,  of  a vehicle which exceeds the limitations provided for in the
   48  rules and regulations of the city department of transportation  of  such
   49  city, shall be punishable by a fine of not less than [two] three hundred
   50  nor  more  than [five hundred] seven hundred fifty dollars, or by impri-
   51  sonment for not more than thirty days, or by both such fine  and  impri-
   52  sonment,  for  the  first  offense;  by  a  fine  of not less than [five
   53  hundred] seven hundred fifty nor more than  one  thousand  five  hundred
   54  dollars,  or  by  imprisonment  for not more than sixty days, or by both
   55  such fine and  imprisonment,  for  the  second  or  subsequent  offense;
   56  provided  that  a  sentence or execution thereof for any violation under
       S. 1406                            16                            A. 2106
 
    1  this subdivision  may  not  be  suspended.  For  any  violation  of  the
    2  provisions  of this section, including a violation related to the opera-
    3  tion, within a city not wholly included within one county, of a  vehicle
    4  which  exceeds the limitations provided for in the rules and regulations
    5  of the city department of transportation of such city, the  registration
    6  of  the  vehicle  may  be  suspended for a period not to exceed one year
    7  whether at the time of the violation the vehicle was in  charge  of  the
    8  owner  or  his agent. The provisions of section five hundred ten of this
    9  chapter shall apply to such  suspension  except  as  otherwise  provided
   10  herein.
   11    §  17.  Paragraph  (a) of subdivision 19 of section 385 of the vehicle
   12  and traffic law, as amended by chapter 929  of  the  laws  of  1985,  is
   13  amended to read as follows:
   14    (a)  A  violation of the provisions of subdivision ten of this section
   15  by any vehicle or combination  of  vehicles  whose  weight  exceeds  the
   16  weight limitations as set forth in this section, or such rules and regu-
   17  lations,  or  the weight limitations specified by permit issued pursuant
   18  to subdivision fifteen of this section  shall  be  punishable  by  fines
   19  levied  on  the  registered owner of the vehicle or vehicles, whether at
   20  the time of the violation the vehicle was in the charge  of  the  regis-
   21  tered  owner  or  his  agent  or lessee in accordance with the following
   22  schedule:
 
   23  Excess Total Weight
   24       (pounds)                                             Amount of Fine
   25     greater than            less than or equal to             (dollars)
 
   26             0                       2,000                    [50] 75
   27         2,000                       3,000                   [75] 115
   28         3,000                       4,000                  [100] 150
   29         4,000                       5,000                  [200] 300
   30         5,000                       6,000                  [300] 450
   31         6,000                       7,000                  [400] 600
   32         7,000                       8,000                  [500] 750
   33         8,000                       9,000                  [600] 900
   34         9,000                      10,000                [700] 1,050
   35        10,000                      15,000              [1,200] 1,800
   36        15,000                      20,000              [1,700] 2,550
   37        20,000                      25,000              [2,200] 3,300
   38        25,000                      30,000              [2,700] 4,050
   39        30,000               [six] nine cents for each pound in excess of
   40                             30,000
 
   41  (NOTE: Where the excess total weight is greater than  10,000  pounds  in
   42  excess  of  the limits specified by a permit, the permit shall be deemed
   43  voided and then the amount of fine shall  be  determined  in  accordance
   44  with  the  maximum weight which would have been in effect for the opera-
   45  tion of such vehicle if the permit to exceed such maximum weight had not
   46  been issued.)
   47    § 18. Paragraph (b) of subdivision 19 of section 385  of  the  vehicle
   48  and  traffic  law,  as  amended  by  chapter 929 of the laws of 1985, is
   49  amended to read as follows:
   50    (b) A violation of the provisions of subdivisions eight  and  nine  of
   51  this  section  by  any  vehicle  or combination of vehicles whose weight
   52  exceeds the weight limitations as set forth in  this  section,  or  such
   53  rules  or  regulations,  or  the  weight limitations specified by permit
       S. 1406                            17                            A. 2106
 
    1  issued pursuant to subdivision fifteen of this section shall be punisha-
    2  ble by fines levied on the registered owner of the vehicle or  vehicles,
    3  whether  at  the  time of the violation the vehicle was in the charge of
    4  the  registered  owner,  or his agent, or lessee, in accordance with the
    5  following schedule:
 
    6  Percentage of excess weight
    7       (percentage)                                         Amount of Fine
    8       greater than          less than or equal to             (dollars)
 
    9             0                       5.0                    [100] 150
   10           5.0                      10.0                    [200] 300
   11          10.0                      15.0                    [350] 525
   12          15.0                      20.0                    [600] 900
   13          20.0                      25.0                 [1000] 1,500
   14          25.0                      30.0                 [1600] 2,400
   15          30.0                                           [2450] 3,675
 
   16  (NOTE: Where the excess axle or axles weight is greater than ten percent
   17  in excess of the limits specified by  a  permit,  the  permit  shall  be
   18  deemed voided and then the amount of fine shall be determined in accord-
   19  ance  with  the  maximum  weight which would have been in effect for the
   20  operation of such vehicle if the permit to exceed  such  maximum  weight
   21  had not been issued.)
   22    In  connection with the weighting of a vehicle or combination of vehi-
   23  cles, if it is found that there is a violation  of  subdivision  fifteen
   24  and/or  subdivision  ten  and also of subdivision eight or nine, or both
   25  subdivisions eight and nine, of this section, there shall  be  a  single
   26  fine  imposed  and  the maximum amount of such fine shall not exceed the
   27  highest fine that could be imposed under paragraph (a) of this  subdivi-
   28  sion or this paragraph.
   29    §  19.  Paragraph  (c) of subdivision 19 of section 385 of the vehicle
   30  and traffic law, as added by chapter 929 of the laws of 1985, is amended
   31  to read as follows:
   32    (c) Notwithstanding paragraph (a) of this subdivision, a violation  of
   33  the  provisions  of subdivision ten of this section in a city not wholly
   34  included within one county or of the provisions of the  rules  or  regu-
   35  lations of the city department of transportation setting forth the maxi-
   36  mum  allowable  gross weight for the operation of a vehicle in such city
   37  without a permit for such vehicle, by  any  vehicle  or  combination  of
   38  vehicles  whose  weight  exceeds  the weight limitations as set forth in
   39  this section, or such rules and regulations, or the  weight  limitations
   40  specified  by  permit  issued  pursuant  to  subdivision fifteen of this
   41  section (excluding  enforcement  scale  tolerance  not  to  exceed  five
   42  percent)  shall be punishable by fines levied on the registered owner of
   43  the vehicle or vehicles, whether at the time of the violation the  vehi-
   44  cle  was in the charge of the registered owner or his agent or lessee in
   45  accordance with the following schedule:
 
   46  Excess Total Weight
   47       (pounds)                                             Amount of Fine
   48     greater than            less than or equal to             (dollars)
   49             0                       2,000                    [50] 75
   50         2,000                       3,000                   [75] 115
   51         3,000                       4,000                  [100] 150
   52         4,000                       5,000                  [200] 300
       S. 1406                            18                            A. 2106
 
    1         5,000                       6,000                  [300] 450
    2         6,000                       7,000                  [400] 600
    3         7,000                       8,000                  [500] 750
    4         8,000                       9,000                  [600] 900
    5         9,000                      10,000                [700] 1,050
    6        10,000                      15,000              [1,200] 1,800
    7        15,000                      20,000              [1,700] 2,550
    8        20,000                      25,000              [2,200] 3,300
    9        25,000                      30,000              [2,700] 4,050
   10        30,000                      35,000              [3,200] 4,800
   11        35,000                      40,000              [3,700] 5,550
   12        40,000                      45,000              [4,200] 6,300
   13        45,000                      50,000 or greater   [4,700] 7,050
 
   14  (NOTE:  Where  the excess total weight is greater than the limits speci-
   15  fied by a permit, the permit shall be deemed voided and then the  amount
   16  of  fine shall be determined in accordance with the maximum weight which
   17  would have been in effect for the  operation  of  such  vehicle  if  the
   18  permit to exceed such maximum weight had not been issued.)
   19    §  20.  Paragraph  (d) of subdivision 19 of section 385 of the vehicle
   20  and traffic law, as added by chapter 929 of the laws of 1985, is amended
   21  to read as follows:
   22    (d) Notwithstanding paragraph (b) of this subdivision, a violation  of
   23  the  provisions of subdivisions eight and nine of this section in a city
   24  not wholly included within one county or of the provisions of the  rules
   25  or  regulations  of  the city department of transportation setting forth
   26  the maximum allowable axle or tandem axle weight for the operation of  a
   27  vehicle  in  such city without a permit for such vehicle, by any vehicle
   28  or combination of vehicles whose weight exceeds the  weight  limitations
   29  as  set  forth  in  this  section,  or such rules or regulations, or the
   30  weight limitations specified by permit issued  pursuant  to  subdivision
   31  fifteen  of  this  section  shall  be  punishable by fines levied on the
   32  registered owner of the vehicle or vehicles, whether at the time of  the
   33  violation  the vehicle was in the charge of the registered owner, or his
   34  agent, or lessee, in accordance with the following schedule:
 
   35  Percentage of excess weight
   36       (percentage)                                         Amount of Fine
   37       greater than          less than or equal to             (dollars)
   38             0                       5.0                    [100] 150
   39           5.0                      10.0                    [200] 300
   40          10.0                      15.0                    [350] 525
   41          15.0                      20.0                    [600] 900
   42          20.0                      25.0                 [1000] 1,500
   43          25.0                      30.0                 [1600] 2,400
   44          30.0                      35.0                 [2450] 3,675
   45          35.0                      40.0                 [3600] 5,400
   46          40.0                      45.0                 [5100] 7,650
   47          45.0                                          [7000] 10,500
 
   48  (NOTE: Where the excess axle or axles weight is greater than the  limits
   49  specified  by  a  permit, the permit shall be deemed voided and then the
   50  amount of fine shall be determined in accordance with the maximum weight
   51  which would have been in effect for the operation of such vehicle if the
   52  permit to exceed such maximum weight had not been issued.)
       S. 1406                            19                            A. 2106
 
    1    § 21. Subdivision 1 of section 71-2103 of the environmental  conserva-
    2  tion  law,  as amended by chapter 608 of the laws of 1993, is amended to
    3  read as follows:
    4    1.  Except as provided in section 71-2113, any person who violates any
    5  provision of article nineteen or any code, rule or regulation which  was
    6  promulgated  pursuant  thereto;  or  any order except an order directing
    7  such person to pay a penalty by a specified date issued by  the  commis-
    8  sioner  pursuant  thereto,  shall  be  liable,  in  the  case of a first
    9  violation, for a penalty not less than [two hundred fifty] three hundred
   10  seventy-five dollars nor more than [ten] fifteen  thousand  dollars  for
   11  said  violation and an additional penalty of not to exceed [ten] fifteen
   12  thousand dollars for each day during which such violation continues.  In
   13  the  case  of  a second or any further violation, the liability shall be
   14  for a penalty not to exceed [fifteen thousand] twenty-two thousand  five
   15  hundred  dollars  for  said  violation  and an additional penalty not to
   16  exceed [fifteen thousand] twenty-two thousand five hundred  dollars  for
   17  each  day  during  which  such violation continues. In addition thereto,
   18  such person may be enjoined from continuing such violation as hereinaft-
   19  er provided.
   20    § 22. Subdivision 1 of section 71-2105 of the environmental  conserva-
   21  tion  law,  as amended by chapter 608 of the laws of 1993, is amended to
   22  read as follows:
   23    1. Except as provided in section 71-2113, any person who shall wilful-
   24  ly violate any of the provisions of article 19  or  any  code,  rule  or
   25  regulation  promulgated  pursuant  thereto or any final determination or
   26  order of the commissioner made pursuant to article 19 shall be guilty of
   27  a misdemeanor, and, upon conviction thereof,  shall  be  punished  by  a
   28  fine,  in  the case of a first conviction, of not less than [two hundred
   29  fifty] three hundred seventy-five dollars nor more  than  [ten]  fifteen
   30  thousand  dollars  or  by  imprisonment  for a term of not more than one
   31  year,  or  by  both  such  fine  and  imprisonment,  for  each  separate
   32  violation. If the conviction is for an offense committed after the first
   33  conviction  of  such person under this subdivision, such person shall be
   34  punished by a fine not to exceed [fifteen thousand] twenty-two  thousand
   35  five  hundred  dollars,  or  by  imprisonment,  or by both such fine and
   36  imprisonment. Each day on which such violation occurs shall constitute a
   37  separate violation.
   38    § 23. Subdivision 1 of section 71-2113 of the environmental  conserva-
   39  tion  law,  as  added  by chapter 942 of the laws of 1984, is amended to
   40  read as follows:
   41    1. Civil and administrative sanctions. Any person who violates any  of
   42  the  provisions  of, or who fails to perform any duty imposed by section
   43  19-0304 of this chapter, or any rule or regulation promulgated  pursuant
   44  thereto,  or  any  term or condition of any certificate or permit issued
   45  pursuant thereto, or any final determination or order of the commission-
   46  er made pursuant to article 19 of this chapter concerning a violation of
   47  section 19-0304 of this chapter shall be liable in the case of  a  first
   48  violation,  for  a  civil  penalty  not to exceed [twenty-five thousand]
   49  thirty-seven thousand five hundred dollars and an additional penalty  of
   50  not  more than [twenty-five thousand] thirty-seven thousand five hundred
   51  dollars for each day  during  which  such  violation  continues,  to  be
   52  assessed  by  the commissioner after an opportunity to be heard pursuant
   53  to the provisions of section 71-1709 of this [chapter]  article,  or  by
   54  the  court  in  any  action or proceeding pursuant to section 71-2107 of
   55  this [chapter] title, and, in addition thereto, such person may by simi-
   56  lar process be enjoined from continuing such violation and any permit or
       S. 1406                            20                            A. 2106
 
    1  certificate issued to such person may be revoked or suspended or a pend-
    2  ing renewal application denied. In the case of a second and any  further
    3  violation,  the  liability  shall  be  for a civil penalty not to exceed
    4  [fifty]  seventy-five  thousand  dollars  for each such violation and an
    5  additional penalty not to exceed [fifty] seventy-five  thousand  dollars
    6  for each day during which such violation continues.
    7    §  24. Subdivision 2 of section 71-2113 of the environmental conserva-
    8  tion law, as added by chapter 942 of the laws of  1984,  is  amended  to
    9  read as follows:
   10    2.  Criminal  sanctions.  Any  person  who, having any of the culpable
   11  mental states defined in section 15.05 of the penal law,  shall  violate
   12  any  of  the  provisions  of or who fails to perform any duty imposed by
   13  section 19-0304 of this chapter, or any rules and regulations promulgat-
   14  ed pursuant thereto, or any term or  condition  of  any  certificate  or
   15  permit  issued  pursuant thereto, or any final determination or order of
   16  the commissioner made pursuant to article 19 of this chapter  concerning
   17  a  violation  of  section  19-0304  of this chapter shall be guilty of a
   18  misdemeanor and, upon conviction thereof, shall for a  first  conviction
   19  be  punished by a fine not to exceed [twenty-five thousand] thirty-seven
   20  thousand five hundred dollars per day of violation  or  by  imprisonment
   21  for  a  term  of not more than one year, or both such fine and imprison-
   22  ment. If the conviction is  for  an  offense  committed  after  a  first
   23  conviction of such person under this subdivision, punishment shall be by
   24  a  fine  not  to exceed [fifty] seventy-five thousand dollars per day of
   25  violation, or by imprisonment for not more than two  years  or  by  both
   26  such fine and imprisonment.
   27    §  25. Paragraph a of subdivision 1 of section 71-2703 of the environ-
   28  mental conservation law, as amended by chapter 508 of the laws of  1995,
   29  is amended to read as follows:
   30    a.  Any  person who violates any of the provisions of, or who fails to
   31  perform any duty imposed by title 3 or 7 of article 27 of  this  chapter
   32  or  any  rule or regulation promulgated pursuant thereto, or any term or
   33  condition of any certificate or permit issued pursuant thereto,  or  any
   34  final  determination  or order of the commissioner made pursuant to this
   35  title shall be liable for a civil penalty not to exceed [five  thousand]
   36  seven thousand five hundred dollars for each such violation and an addi-
   37  tional  penalty  of  not more than one thousand five hundred dollars for
   38  each day during which such violation continues, to be  assessed  by  the
   39  commissioner after an opportunity to be heard pursuant to the provisions
   40  of  section  71-1709  of  this [chapter] article, or by the court in any
   41  action or proceeding pursuant  to  section  71-2727  of  this  [chapter]
   42  title,  and,  in addition thereto, such person may by similar process be
   43  enjoined from continuing such violation and any  permit  or  certificate
   44  issued  to  such person may be revoked or suspended or a pending renewal
   45  application denied.
   46    § 26. Subparagraphs i and ii  of  paragraph  b  of  subdivision  1  of
   47  section 71-2703 of the environmental conservation law, as added by chap-
   48  ter 508 of the laws of 1995, are amended to read as follows:
   49    i.  Any  person who violates any of the provisions of, or who fails to
   50  perform any duty imposed by, title 3 or 7 of article 27 of this chapter,
   51  or any rule or regulation promulgated pursuant thereto, or any  term  or
   52  condition  of  any  certificate  or  permit  issued pursuant thereto and
   53  thereby causes the release of solid waste into the environment, shall be
   54  liable for a civil penalty not to exceed [seven thousand  five  hundred]
   55  eleven thousand two hundred fifty dollars for each such violation and an
   56  additional penalty of not more than [seven thousand five hundred] eleven
       S. 1406                            21                            A. 2106
 
    1  thousand  two  hundred  fifty  dollars  for  each  day during which such
    2  violation continues, to be assessed by the commissioner after an  oppor-
    3  tunity to be heard pursuant to the provisions of section 71-1709 of this
    4  [chapter]  article, or by the court in any action or proceeding pursuant
    5  to section 71-2727 of this [chapter] title, and,  in  addition  thereto,
    6  such  person  may  by  similar  process be enjoined from continuing such
    7  violation and any permit or certificate issued to  such  person  may  be
    8  revoked or suspended or a pending renewal application denied.
    9    ii.  Any person who violates any of the provisions of, or who fails to
   10  perform any duty imposed by, title 3 or 7 of article 27 of this chapter,
   11  or any rule or regulation promulgated pursuant thereto, or any  term  or
   12  condition  of  any  certificate  or  permit  issued pursuant thereto and
   13  thereby causes the release of more than ten cubic yards of  solid  waste
   14  into  the environment, shall be liable for a civil penalty not to exceed
   15  [fifteen thousand] twenty-two thousand five  hundred  dollars  for  each
   16  such violation and an additional penalty of not more than [fifteen thou-
   17  sand] twenty-two thousand five hundred dollars for each day during which
   18  such  violation  continues,  to be assessed by the commissioner after an
   19  opportunity to be heard pursuant to the provisions of section 71-1709 of
   20  this [chapter] article, or by the court  in  any  action  or  proceeding
   21  pursuant  to  section  71-2727 of this [chapter] title, and, in addition
   22  thereto, such person may by similar process be enjoined from  continuing
   23  such  violation  and any permit or certificate issued to such person may
   24  be revoked or suspended or a pending renewal application denied.
   25    § 27. Paragraph a and subparagraphs i and ii of paragraph b of  subdi-
   26  vision 2 of section 71-2703 of the environmental conservation law, para-
   27  graph a as amended and subparagraphs i and ii of paragraph b as added by
   28  chapter 508 of the laws of 1995, are amended to read as follows:
   29    a. Any person who, having any of the culpable mental states defined in
   30  section  15.05  of the penal law, shall violate any of the provisions of
   31  or who fails to perform any duty imposed by title 3 or 7 of  article  27
   32  of this chapter, or any rules and regulations promulgated pursuant ther-
   33  eto, or any final determination or order of the commissioner made pursu-
   34  ant  to  this  title shall be guilty of a violation and, upon conviction
   35  thereof, shall be punished by a fine of not less than one thousand  five
   36  hundred  dollars nor more than [ten] fifteen thousand dollars per day of
   37  violation or by imprisonment for not more than fifteen days or  by  both
   38  such fine and imprisonment.
   39    i.  Any  person  who shall violate paragraph a of this subdivision and
   40  thereby causes or attempts to cause the release of more than  ten  cubic
   41  yards  of  solid waste into the environment shall be guilty of a class B
   42  misdemeanor and, upon conviction thereof, shall be punished by a fine of
   43  not less than [two thousand five hundred] three thousand  seven  hundred
   44  fifty  dollars per day nor more than [fifteen thousand] twenty-two thou-
   45  sand five hundred dollars per day of violation, or by imprisonment for a
   46  term in accordance with the penal law, or by both such fine  and  impri-
   47  sonment.
   48    ii.  Any  person who shall violate paragraph a of this subdivision and
   49  thereby causes or attempts to cause the release of more than  ten  cubic
   50  yards  of  solid waste into the environment, after having been convicted
   51  of a violation of this subdivision  within  the  preceding  five  years,
   52  shall  be  guilty of a class A misdemeanor and, upon conviction thereof,
   53  shall be punished by a fine of not less than [two thousand five hundred]
   54  three thousand seven hundred fifty dollars per day nor more than  [twen-
   55  ty-five  thousand] thirty-seven thousand five hundred dollars per day of
       S. 1406                            22                            A. 2106
 
    1  violation, or by imprisonment for a term in accordance  with  the  penal
    2  law, or by both such fine and imprisonment.
    3    §  28.  Subparagraphs  i  and  ii  of  paragraph c of subdivision 2 of
    4  section 71-2703 of the environmental conservation law, as added by chap-
    5  ter 508 of the laws of 1995, are amended to read as follows:
    6    i. Any person who shall violate paragraph a of  this  subdivision  and
    7  thereby  causes  or  attempts  to cause the release of more than seventy
    8  cubic yards of solid waste into the environment shall  be  guilty  of  a
    9  class A misdemeanor and, upon conviction thereof, shall be punished by a
   10  fine  of  not less than [two thousand five hundred] three thousand seven
   11  hundred fifty dollars per day nor more than [twenty-five thousand] thir-
   12  ty-seven thousand five hundred dollars  per  day  of  violation,  or  by
   13  imprisonment  for  a  term  in accordance with the penal law, or by both
   14  such fine and imprisonment.
   15    ii. Any person who shall violate paragraph a of this  subdivision  and
   16  thereby  causes  or  attempts  to cause the release of more than seventy
   17  cubic yards of solid waste  into  the  environment,  after  having  been
   18  convicted  of  a violation of this subdivision within the preceding five
   19  years, shall be guilty of a class E felony and, upon conviction thereof,
   20  shall be punished by a fine of not less than [five thousand] seven thou-
   21  sand five hundred dollars per day nor  more  than  [fifty]  seventy-five
   22  thousand  dollars per day of violation, or by imprisonment for a term in
   23  accordance with the penal law, or by both such fine and imprisonment.
   24    § 29. Subdivision 3 of section 71-2703 of the environmental  conserva-
   25  tion  law,  as amended by chapter 508 of the laws of 1995, is amended to
   26  read as follows:
   27    3. Additional sanctions. Any person who violates any of the provisions
   28  of, or who fails to perform any duty imposed by title 7 of  article  27,
   29  with  regard  to  the  construction  and operation of facilities for the
   30  disposal of construction and demolition debris or any rule or regulation
   31  promulgated pursuant thereto, or any term or condition  of  any  certif-
   32  icate  or  permit  issued pursuant thereto or any final determination or
   33  order of the commissioner made pursuant to this title  shall  be  liable
   34  for  a  civil  penalty  not to exceed [ten] fifteen thousand dollars and
   35  each day of such deposition shall constitute a  separate  violation  and
   36  said  civil penalty is in addition to any other fines or penalties which
   37  may be applied pursuant to this title.
   38    § 30. Subdivision 1 of section 71-2705 of the environmental  conserva-
   39  tion  law,  as amended by chapter 493 of the laws of 1985, is amended to
   40  read as follows:
   41    1. Civil and administrative sanctions. Any person who violates any  of
   42  the provisions of, or who fails to perform any duty imposed by titles 9,
   43  11  and  13 of article 27 or any rule or regulation promulgated pursuant
   44  thereto, or any term or condition of any certificate  or  permit  issued
   45  pursuant thereto, or any final determination or order of the commission-
   46  er  made  pursuant  to this title shall be liable in the case of a first
   47  violation, for a civil penalty  not  to  exceed  [twenty-five  thousand]
   48  thirty-seven  thousand five hundred dollars and an additional penalty of
   49  not more than [twenty-five thousand] thirty-seven thousand five  hundred
   50  dollars  for  each  day  during  which  such  violation continues, to be
   51  assessed by the commissioner after an opportunity to be  heard  pursuant
   52  to  the  provisions  of section 71-1709 of this [chapter] article, or by
   53  the court in any action or proceeding pursuant  to  section  71-2727  of
   54  this [chapter] title, and, in addition thereto, such person may by simi-
   55  lar process be enjoined from continuing such violation and any permit or
   56  certificate issued to such person may be revoked or suspended or a pend-
       S. 1406                            23                            A. 2106
 
    1  ing  renewal application denied. In the case of a second and any further
    2  violation, the liability shall be for a  civil  penalty  not  to  exceed
    3  [fifty]  seventy-five  thousand  dollars  for each such violation and an
    4  additional  penalty  not to exceed [fifty] seventy-five thousand dollars
    5  for each day during which such violation continues.
    6    § 31. Subdivision 2 of section 71-2705 of the environmental  conserva-
    7  tion  law,  as  added  by chapter 550 of the laws of 1980, is amended to
    8  read as follows:
    9    2. Criminal sanctions. Any person who,  having  any  of  the  culpable
   10  mental  states  defined in section 15.05 of the penal law, shall violate
   11  any of the provisions of or who fails to perform  any  duty  imposed  by
   12  titles  9,  11 and 13 of article 27 or any rules and regulations promul-
   13  gated pursuant thereto, or any term or condition of any  certificate  or
   14  permit  issued  pursuant thereto, or any final determination or order of
   15  the commissioner made pursuant to this title shall be guilty of a misde-
   16  meanor and, upon conviction thereof, shall for  a  first  conviction  be
   17  punished  by  a  fine  not to exceed [twenty-five thousand] thirty-seven
   18  thousand five hundred dollars per day of violation  or  by  imprisonment
   19  for  a  term  of not more than one year, or both such fine and imprison-
   20  ment. If the conviction is  for  an  offense  committed  after  a  first
   21  conviction of such person under this subdivision, punishment shall be by
   22  a  fine  not  to exceed [fifty] seventy-five thousand dollars per day of
   23  violation, or by imprisonment for not more than two  years  or  by  both
   24  such fine and imprisonment.
   25    §  32. Subdivision 2 of section 71-2721 of the environmental conserva-
   26  tion law, as amended by chapter 671 of the laws of 1986, is  amended  to
   27  read as follows:
   28    2.  Fines.  A  sentence  to  pay  a fine shall be a sentence to pay an
   29  amount fixed by the court, not exceeding the higher of:
   30    (a) [Two] Three hundred thousand dollars for a class C felony;
   31    (b) [One hundred fifty  thousand]  Two  hundred  twenty-five  thousand
   32  dollars for a class D felony;
   33    (c) One hundred fifty thousand dollars for a class E felony;
   34    (d)  [Twenty-five thousand] Thirty-seven thousand five hundred dollars
   35  for a class A misdemeanor;
   36    (e) [Ten] Fifteen thousand dollars for a class B misdemeanor; or
   37    (f) Double the amount of the defendant's gain from the  commission  of
   38  the crime.
   39    §  33. Subdivision 1 of section 71-2722 of the environmental conserva-
   40  tion law, as added by chapter 152 of the laws of  1990,  is  amended  to
   41  read as follows:
   42    1.  Any  person  who  knowingly  or  intentionally violates any of the
   43  provisions or fails to perform any duty imposed by  section  27-1701  of
   44  this  chapter, except the duty to accept a lead-acid battery pursuant to
   45  subdivision four of such section, shall be liable for  a  civil  penalty
   46  not  to exceed [fifty] seventy-five dollars for each violation, provided
   47  that such civil penalty shall be in  addition  to  any  other  penalties
   48  authorized  under  other  state  or  local  laws  governing  the illegal
   49  disposal of lead-acid batteries.
   50    § 34. Subdivision 2 of section 71-2722 of the environmental  conserva-
   51  tion  law,  as  added  by chapter 152 of the laws of 1990, is amended to
   52  read as follows:
   53    2. Any retailer or distributor  who  refuses  to  accept  a  lead-acid
   54  battery  as  required pursuant to subdivision four of section 27-1701 of
   55  this chapter shall be liable for a civil penalty  not  to  exceed  [five
   56  hundred] seven hundred fifty dollars.
       S. 1406                            24                            A. 2106
 
    1    §  35. Subdivision 2 of section 71-1909 of the environmental conserva-
    2  tion law, is amended to read as follows:
    3    2.  Any  person  violating  any  provision of section 17-1709 shall be
    4  guilty of a misdemeanor, and punishable by a fine of not more than [five
    5  hundred] seven hundred fifty dollars or by  imprisonment  for  not  more
    6  than one year or by both such fine and imprisonment.
    7    §  36.  Section  71-1911  of  the  environmental  conservation law, is
    8  amended to read as follows:
    9  § [17-1911] 71-1911. Enforcement of section 17-1711.
   10    Any person violating any provision of section 17-1711 shall be  guilty
   11  of  an offense, and punishable by a fine of not more than [fifty] seven-
   12  ty-five dollars.
   13    § 37. Subdivision 1 of section 71-1929 of the environmental  conserva-
   14  tion  law,  as amended by chapter 360 of the laws of 1988, is amended to
   15  read as follows:
   16    1. A person who violates any of the provisions of,  or  who  fails  to
   17  perform  any  duty imposed by titles 1 through 11 inclusive and title 19
   18  of article 17, or the rules, regulations, orders  or  determinations  of
   19  the  commissioner  promulgated thereto or the terms of any permit issued
   20  thereunder, shall be liable to a penalty of not to  exceed  [twenty-five
   21  thousand]  thirty-seven  thousand  five hundred dollars per day for each
   22  violation, and, in addition thereto, such person may  be  enjoined  from
   23  continuing such violation as hereinafter provided. Violation of a permit
   24  condition  shall constitute grounds for revocation of such permit, which
   25  revocation may be accomplished either as  provided  in  paragraph  f  of
   26  subdivision  4 of section 17-0303 or by order of judgment of the supreme
   27  court as an alternate or additional civil penalty in an  action  brought
   28  pursuant to subdivision 3 of this section.
   29    §  38. Subdivision 1 of section 71-1933 of the environmental conserva-
   30  tion law, as amended by chapter 360 of the laws of 1988, is  amended  to
   31  read as follows:
   32    1. Any person who, having any of the culpable mental states defined in
   33  section  15.05  of the penal law, shall violate any of the provisions of
   34  titles 1 through 5, 9 through 11 and 19 of  article  17  or  the  rules,
   35  regulations,  orders  or  determinations of the commissioner promulgated
   36  thereto, or the terms of any permit issued thereunder, shall  be  guilty
   37  of  a  misdemeanor  and, upon conviction thereof, shall be punished by a
   38  fine of not less than [two thousand five hundred] three  thousand  seven
   39  hundred  fifty dollars nor more than [twenty-five thousand] thirty-seven
   40  thousand five hundred dollars per day of violation  or  by  imprisonment
   41  for a term of not more than one year, or by both such fine and imprison-
   42  ment.  If  the  conviction  is  for  an  offense committed after a first
   43  conviction of such person under this subdivision, punishment shall be by
   44  a fine of not more than [fifty] seventy-five thousand dollars per day of
   45  violation, or by imprisonment for not more than two years, or by both.
   46    § 39. Subparagraphs i, ii, iii, and iv of paragraph b of subdivision 8
   47  of section 71-1933 of the environmental conservation law,  as  added  by
   48  chapter 360 of the laws of 1988, is amended to read as follows:
   49    i.  [$500,000] $750,000 for a class C felony committed by an organiza-
   50  tion as defined in section 71-1932 of this title;
   51    ii. [$250,000] $375,000 for a class C felony;
   52    iii. [$50,000] $75,000 per day of continuing violation for a  class  E
   53  felony  defined  under  subdivision four of this section but in no event
   54  less than [$5,000] $7,500; and [$10,000] $15,000 for a  class  E  felony
   55  defined under subdivision seven of this section;
       S. 1406                            25                            A. 2106
 
    1    iv.  [$25,000]  $37,500  per day of continuing violation for a class A
    2  misdemeanor but in no event less than [$2,500] $3,750.
    3    §  40. Subdivision 1 of section 71-1941 of the environmental conserva-
    4  tion law, as amended by chapter 613 of the laws of 1983, is  amended  to
    5  read as follows:
    6    1.  Except  where  the  owner of or a person in actual or constructive
    7  possession or control of more than one thousand one hundred gallons,  in
    8  bulk,  of  any  liquid  including petroleum which, if released, would or
    9  would be likely to pollute the lands or waters of  the  state  including
   10  the  groundwaters  thereof  can  prove that the entry or presence of any
   11  part of such liquid onto such lands or into or in such waters causing or
   12  contributing to a condition therein in contravention  of  the  standards
   13  adopted or deemed adopted by the water pollution control board or any of
   14  its  legal successors was caused solely by (A) an act of God, (B) an act
   15  of war, (C) negligence on the part of the  United  States  or  New  York
   16  State  Government  or  (D)  an  act or omission of a third party without
   17  regard to whether any such act or omission was or was not negligent,  or
   18  any  combination of the foregoing clauses, such owner or person shall be
   19  liable for a penalty of not more than [two thousand five hundred]  three
   20  thousand  seven  hundred fifty dollars for an initial incident resulting
   21  in or contributing to such a contravention and for an additional penalty
   22  not to exceed [five hundred] seven hundred fifty dollars  for  each  day
   23  during  which  such contravention or contribution thereto continues, and
   24  in addition shall be liable to the people of the state of New  York  for
   25  the actual costs incurred by or on behalf of the people of the state for
   26  the removal or neutralization of such liquid and for any and all reason-
   27  able measures taken or attempted to reduce, limit or diminish the extent
   28  or effect of such contravention.
   29    §  41. Section 71-1943 of the environmental conservation law, as added
   30  by chapter 400 of the laws of 1973, is amended to read as follows:
   31  § 71-1943. Enforcement of section 17-1743.
   32    Any person who fails to so notify  the  department  of  such  release,
   33  discharge  or spill into the waters of the state as described in section
   34  17-1743 of this chapter shall, upon conviction, be fined not  more  than
   35  [two  thousand  five hundred] three thousand seven hundred fifty dollars
   36  or imprisoned for not more than one year, or both.
   37    § 42. This act shall take effect immediately.
 
   38                                   PART F
 
   39    Section 1. Section 3 of part C of chapter 152 of  the  laws  of  2001,
   40  amending  the  military  law relating to military funds of the organized
   41  militia, is amended to read as follows:
   42    § 3. This act shall take effect on the same date as the  reversion  of
   43  subdivision  5  of  section  183 and subdivision 1 of section 221 of the
   44  military law as provided by section 76 of chapter 435  of  the  laws  of
   45  1997, as amended by section 1 of chapter 19 of the laws of 1999 notwith-
   46  standing  this act shall be deemed to have been in full force and effect
   47  on and after July 29, 2001 [and shall remain in full  force  and  effect
   48  until July 31, 2003 when upon such date this act shall expire].
   49    §  2.  This  act shall take effect April 1, 2003; provided however, if
   50  this act shall become a law after such date it shall take  effect  imme-
   51  diately and shall be deemed to have been in full force and effect on and
   52  after April 1, 2003.
 
   53                                   PART G
       S. 1406                            26                            A. 2106
 
    1    Section  1.  Paragraph  (d)  of  subdivision  1  of section 803 of the
    2  correction law, as added by chapter 435 of the laws of 1997, is  amended
    3  to read as follows:
    4    (d)  Every person under the custody of the department or confined in a
    5  facility in the department of mental hygiene  serving  an  indeterminate
    6  sentence  of  imprisonment with a minimum [term] period in excess of one
    7  year and no determinate sentence of imprisonment, except a person  serv-
    8  ing an indeterminate sentence for an A-I felony offense, a violent felo-
    9  ny offense as defined in section 70.02 of the penal law, manslaughter in
   10  the  second degree, vehicular manslaughter in the second degree, vehicu-
   11  lar manslaughter in the first degree, criminally negligent homicide,  an
   12  offense  defined in article one hundred thirty of the penal law, incest,
   13  or an offense defined in article two hundred sixty-three  of  the  penal
   14  law,  may  receive  merit  time  allowance against the minimum [term or]
   15  period of his or her sentence in the amount of one-sixth of the  minimum
   16  [term or] period imposed by the court.  Notwithstanding the foregoing, a
   17  person  serving  an  indeterminate  sentence  for  an A-I felony offense
   18  defined in article two hundred twenty of the penal law may receive merit
   19  time allowance against the minimum period of his or her sentence in  the
   20  amount  of  one-third  of  the minimum period imposed by the court. Such
   21  allowance may be granted when an inmate successfully participates in the
   22  work and treatment program assigned pursuant to  section  eight  hundred
   23  five  of this article and when such inmate obtains a general equivalency
   24  diploma, an alcohol and substance abuse treatment certificate,  a  voca-
   25  tional  trade  certificate  following  at least six months of vocational
   26  programming or performs at least four hundred hours of service  as  part
   27  of a community work crew.
   28    Such  allowance shall be withheld for any serious disciplinary infrac-
   29  tion or upon a judicial determination that the person, while an  inmate,
   30  commenced  or  continued  a  civil  action, proceeding or claim that was
   31  found to be frivolous as defined in subdivision  (c)  of  section  eight
   32  thousand  three  hundred three-a of the civil practice law and rules, or
   33  an order of a federal court pursuant to rule 11 of the federal rules  of
   34  civil  procedure  imposing sanctions in an action commenced by a person,
   35  while an inmate, against a state agency, officer or employee.
   36    § 2. Subdivision 2-a of section 803 of the correction law, as added by
   37  chapter 435 of the laws of 1997, is amended to read as follows:
   38    2-a. If a person is serving more than one indeterminate sentence,  the
   39  authorized  merit  time  allowance  granted pursuant to paragraph (d) of
   40  subdivision one of this section shall be calculated as follows:
   41    (a) A person serving two or more indeterminate sentences with  differ-
   42  ent  minimum [terms] periods which run concurrently shall have the mini-
   43  mum [term] period of the indeterminate sentence with the  longest  unex-
   44  pired minimum [term] period to run reduced in the amount of one-sixth of
   45  such  minimum  [term]  period; provided, however, that where the minimum
   46  [term] period of any other concurrent indeterminate sentence is  greater
   47  than  such  reduced  minimum [term] period, the minimum [term] period of
   48  such other concurrent indeterminate sentence shall also be  reduced  but
   49  only  to the extent that the minimum [term] period of such other concur-
   50  rent sentence, as so reduced, is equal to  the  reduced  minimum  [term]
   51  period of such sentence with the longest unexpired minimum [term] period
   52  to run.
   53    (b) A person serving two or more indeterminate sentences with the same
   54  minimum  [terms] periods which run concurrently, and no concurrent inde-
   55  terminate sentence with any greater minimum [term]  period,  shall  have
       S. 1406                            27                            A. 2106
 
    1  the minimum [term] period of each such sentence reduced in the amount of
    2  one-sixth of such minimum [term] period.
    3    (c)  A  person  serving  two  or more indeterminate sentences that run
    4  consecutively shall have the aggregate minimum  [term]  period  of  such
    5  sentences  reduced  in the amount of one-sixth of such aggregate minimum
    6  [term] period.
    7    § 3. Section 803 of the correction law is  amended  by  adding  a  new
    8  subdivision 2-b to read as follows:
    9    2-b.  Notwithstanding  the foregoing, if a person is serving more than
   10  one indeterminate sentence, at least one of which is imposed for a class
   11  A-I felony offense defined in article two hundred twenty  of  the  penal
   12  law,  the  authorized merit time allowance granted pursuant to paragraph
   13  (d) of subdivision one of this section shall be calculated as follows:
   14    (a) In the event  a  person  is  serving  two  or  more  indeterminate
   15  sentences  with  different  minimum  periods which run concurrently, the
   16  merit time allowance shall be based upon the sentence with  the  longest
   17  unexpired  minimum  period.  If  the sentence with the longest unexpired
   18  minimum period was imposed for a class A-I felony, the merit time credit
   19  shall be one-third of such sentence's minimum period; if  such  sentence
   20  was  imposed  for  an  offense other than a class A-I felony, such merit
   21  time credit shall  be  one-sixth  of  such  sentence's  minimum  period.
   22  Provided, however, that where the minimum period of any other concurrent
   23  indeterminate  sentence is greater than such reduced minimum period, the
   24  minimum period of such other  concurrent  indeterminate  sentence  shall
   25  also  be  reduced but only to the extent that the minimum period of such
   26  other concurrent sentence, as so reduced, is equal to the reduced  mini-
   27  mum period of such sentence with the longest unexpired minimum period to
   28  run.
   29    (b) A person serving two or more indeterminate sentences with the same
   30  minimum  periods which run concurrently, and no concurrent indeterminate
   31  sentence with any greater minimum period, shall have the minimum  period
   32  of each such sentence reduced in the amount of one-third of such minimum
   33  period if all such sentences were imposed for a class A-I felony.
   34    (c)  A  person  serving  two  or more indeterminate sentences that run
   35  consecutively shall have the aggregate minimum period of such  sentences
   36  reduced  in  the amount of one-third of such aggregate minimum period of
   37  the sentences imposed for a class A-I felony,  plus  one-sixth  of  such
   38  aggregate  minimum  period of the sentences imposed for an offense other
   39  than a class A-I felony.
   40    § 4. Section 805 of the correction law, as amended by chapter 3 of the
   41  laws of 1995, is amended to read as follows:
   42    § 805. Earned eligibility program. Persons committed to the custody of
   43  the department under an indeterminate or determinate sentence of  impri-
   44  sonment  shall be assigned a work and treatment program as soon as prac-
   45  ticable. No earlier than two months prior to the inmate's eligibility to
   46  be paroled pursuant to subdivision one of section  70.40  of  the  penal
   47  law,  the commissioner shall review the inmate's institutional record to
   48  determine whether he has complied with  the  assigned  program.  If  the
   49  commissioner determines that the inmate has successfully participated in
   50  the program he may issue the inmate a certificate of earned eligibility.
   51  Notwithstanding  any  other provision of law, an inmate who is serving a
   52  sentence with a minimum term of not more than [six] eight years and  who
   53  has  been  issued  a certificate of earned eligibility, shall be granted
   54  parole release at the expiration of his minimum term or as authorized by
   55  subdivision four of section eight hundred sixty-seven  of  this  chapter
   56  unless  the board of parole determines that there is a reasonable proba-
       S. 1406                            28                            A. 2106
 
    1  bility that, if such inmate is released, he will not live and remain  at
    2  liberty without violating the law and that his release is not compatible
    3  with  the welfare of society. Any action by the commissioner pursuant to
    4  this  section  shall  be  deemed  a  judicial  function and shall not be
    5  reviewable if done in accordance with law.
    6    § 5. The correction law is amended by adding a new section 806 to read
    7  as follows:
    8    § 806.  Presumptive  release  program  for  nonviolent  inmates.    1.
    9  Notwithstanding any other provision of law to the contrary and except as
   10  provided  in  subdivision  two  of  this section, an inmate who has been
   11  awarded a certificate of earned eligibility by the commissioner  as  set
   12  forth  in  section eight hundred five of this article may be entitled to
   13  presumptive release at the expiration of the minimum or aggregate  mini-
   14  mum  period  of  his or her indeterminate term of imprisonment, provided
   15  that:
   16    (i) the inmate has not been convicted previously of, nor is  presently
   17  serving  a  sentence  imposed  for  a class A-I felony, a violent felony
   18  offense as defined in section 70.02 of the penal  law,  manslaughter  in
   19  the  second degree, vehicular manslaughter in the second degree, vehicu-
   20  lar manslaughter in the first degree, criminally negligent homicide,  an
   21  offense  defined in article one hundred thirty of the penal law, incest,
   22  or an offense defined in article two hundred sixty-three  of  the  penal
   23  law,
   24    (ii) the inmate has not committed any serious disciplinary infraction,
   25  and
   26    (iii)  there  has been no judicial determination that the person while
   27  an inmate commenced or continued a civil  action,  proceeding  or  claim
   28  that  was found to be frivolous as defined in subdivision (c) of section
   29  eight thousand three hundred three-a  of  the  civil  practice  law  and
   30  rules,  or  an  order has not been issued by a federal court pursuant to
   31  rule 11 of the federal rules of civil procedure imposing sanctions in an
   32  action commenced by the  inmate  against  a  state  agency,  officer  or
   33  employee.
   34    2. In the case of an inmate who meets the criteria set forth in subdi-
   35  vision  one  of  this  section and who also meets the criteria for merit
   36  time as provided for in paragraph (d)  of  subdivision  one  of  section
   37  eight  hundred  three  of  this  article, such inmate may be entitled to
   38  presumptive release, as provided in this section, at the  expiration  of
   39  five-sixths  of  the  minimum  or aggregate minimum period of his or her
   40  indeterminate term of imprisonment.
   41    3. Any inmate  eligible  for  presumptive  release  pursuant  to  this
   42  section  shall be required to apply for such release pursuant to section
   43  two hundred fifty-nine-g of the executive law.  Upon  release  from  the
   44  department  of  correctional services, such person shall be in the legal
   45  custody of the division of  parole  as  provided  in  subdivisions  two,
   46  three,  four, five, six and seven of section two hundred fifty-nine-i of
   47  the executive law.
   48    4. The commissioner shall promulgate rules  and  regulations  for  the
   49  granting,   withholding,  cancellation  and  revocation  of  presumptive
   50  release authorized by this section in accordance with the criteria here-
   51  in specified.
   52    5. No person shall have the right to  demand  or  require  presumptive
   53  release  authorized  by this section. The commissioner may revoke at any
   54  time an inmate's scheduled presumptive release pursuant to this  section
   55  for any disciplinary infraction committed by the inmate or for any fail-
   56  ure  to  continue  to  participate successfully in any assigned work and
       S. 1406                            29                            A. 2106
 
    1  treatment program after the certificate of earned eligibility  has  been
    2  awarded.  The  commissioner  may  deny presumptive release to any inmate
    3  whenever the commissioner  determines  that  such  release  may  not  be
    4  consistent  with  the  safety  of  the  community  or the welfare of the
    5  inmate. Any action by the commissioner pursuant to this section shall be
    6  deemed a judicial function and  shall  not  be  reviewable  if  done  in
    7  accordance with law.
    8    6. Any eligible inmate who is not released pursuant to subdivision one
    9  or  two of this section shall be considered for discretionary release on
   10  parole pursuant to the provisions of section eight hundred five of  this
   11  article or section two hundred fifty-nine-i of the executive law, which-
   12  ever is applicable.
   13    7.  Any  reference  to  parole and conditional release in this chapter
   14  shall also be deemed to include presumptive release.
   15    § 6. Subdivisions 2, 4, 5, 6, 8 and paragraph (a) of subdivision 9  of
   16  section  259-a of the executive law, as amended by chapter 1 of the laws
   17  of 1998, are amended to read as follows:
   18    2. The division shall cause complete  records  to  be  kept  of  every
   19  person  on  presumptive release, parole, conditional release or post-re-
   20  lease supervision. Such records shall contain the aliases and photograph
   21  of each such person, and the other information referred to  in  subdivi-
   22  sion  one  of this section, as well as all reports of parole officers in
   23  relation to such persons. Such records shall be maintained by the  divi-
   24  sion and may be made available as deemed appropriate by the chairman for
   25  use  by  the  department of correctional services, the division, and the
   26  board of parole.  Such records shall be  organized  in  accordance  with
   27  methods  of  filing and indexing designed to insure the immediate avail-
   28  ability of complete information about such persons.
   29    4. In accordance with the provisions of  this  chapter,  the  division
   30  shall  supervise  inmates  released  on  presumptive  release, parole or
   31  conditional release, or to post-release  supervision,  except  that  the
   32  division  may  consent  to  the  supervision of a released inmate by the
   33  United States parole commission pursuant to the witness security act  of
   34  nineteen hundred eighty-four.
   35    5.  The division shall conduct such investigations as may be necessary
   36  in connection with alleged violations of  presumptive  release,  parole,
   37  conditional release or post-release supervision.
   38    6. The division shall assist inmates eligible for presumptive release,
   39  parole  or  conditional  release  and  inmates  who  are  on presumptive
   40  release, parole, conditional  release  or  post-release  supervision  to
   41  secure employment, educational or vocational training.
   42    8.  The  division  may  establish a parole transition program which is
   43  hereby defined as community-based residential facilities designed to aid
   44  presumptive release, parole, conditional release or post-release  super-
   45  vision  violators develop an increased capacity for adjustment to commu-
   46  nity living.  [Parolees,] Presumptive releasees,  parolees,  conditional
   47  releasees  and  those under post-release supervision who have either (i)
   48  been found pursuant to section two hundred fifty-nine-i of this  article
   49  to  have  violated  one  or  more  conditions of release in an important
   50  respect, or (ii) who have allegedly violated one or more of such  condi-
   51  tions  upon a finding of probable cause at a preliminary hearing or upon
   52  the waiver thereof may be placed in a parole transition facility. Place-
   53  ment in a parole transition facility upon a finding of probable cause or
   54  the waiver thereof shall not preclude the conduct of a revocation  hear-
   55  ing,  nor, absent a waiver, operate to deny the releasee's right to such
   56  revocation hearing.
       S. 1406                            30                            A. 2106
 
    1    (a) The division shall collect a fee of thirty dollars per month, from
    2  all persons over the age of eighteen who after  the  effective  date  of
    3  this  subdivision  are supervised on presumptive release, parole, condi-
    4  tional release or post-release supervision by the division.   The  divi-
    5  sion shall waive all or part of such fee where, because of the indigence
    6  of  the  offender,  the  payment  of said fee would work an unreasonable
    7  hardship on the person convicted, his or her immediate  family,  or  any
    8  other person who is dependent on such person for financial support.
    9    §  7.  Subdivisions 2, 6 and 15 of section 259-c of the executive law,
   10  subdivisions 2 and 6 as amended by chapter 1 of the  laws  of  1998  and
   11  subdivision  15  as added by chapter 62 of the laws of 2001, are amended
   12  to read as follows:
   13    2.  have the power and duty of determining the conditions  of  release
   14  of  the person who may be presumptively released, conditionally released
   15  or subject to a period of post-release supervision under  an  indetermi-
   16  nate or determinate sentence of imprisonment;
   17    6.  have  the  power to revoke the presumptive release, parole, condi-
   18  tional release or post-release supervision status of any person  and  to
   19  authorize the issuance of a warrant for the re-taking of such persons;
   20    15.  have  the duty to provide written notice to such inmates prior to
   21  release on presumptive release, parole, parole supervision,  conditional
   22  release  or  post  release supervision or pursuant to subdivision six of
   23  section 410.91 of the criminal  procedure  law  of  any  requirement  to
   24  report  to  the  crime  victims board any funds of a convicted person as
   25  defined in section six hundred thirty-two-a of this chapter, the  proce-
   26  dure  for  such  reporting  and  any  potential penalty for a failure to
   27  comply.
   28    § 8. Section 259-e of the executive law, as amended by  chapter  1  of
   29  the laws of 1998, is amended to read as follows:
   30    §  259-e.   Institutional parole services.  The division shall provide
   31  institutional parole services.  Subject to the authority of  the  chair-
   32  man,  these shall include preparation of reports and other data required
   33  by the state board of parole in  the  exercise  of  its  functions  with
   34  respect  to  release on presumptive release, parole, conditional release
   35  or post-release supervision of inmates.  Employees of the  division  who
   36  collect  data, interview inmates and prepare reports for the state board
   37  of parole in institutions under the jurisdiction of  the  department  of
   38  correctional services shall not work under the direct or indirect super-
   39  vision of the head of the institution.
   40    §  9.  Subdivisions  1  and  2  of section 259-f of the executive law,
   41  subdivision 1 as amended by chapter 1 of the laws of 1998  and  subdivi-
   42  sion  2 as added by chapter 904 of the laws of 1977, are amended to read
   43  as follows:
   44    1.  Employees in the division who perform the  duties  of  supervising
   45  inmates  released on presumptive release, parole, conditional release or
   46  post-release supervision, and employees who perform professional  duties
   47  in  institutions  and  who  are assigned to provide institutional parole
   48  services pursuant to section two hundred fifty-nine-e of  this  article,
   49  shall be parole officers.
   50    2.  No person shall be eligible for the position of parole officer who
   51  is under twenty-one years of age or who does not possess a baccalaureate
   52  degree conferred  by  a  post-secondary  institution  accredited  by  an
   53  accrediting  agency recognized by the United States office of education,
   54  or who is not fitted physically, mentally and morally.  Parole  officers
   55  selection  shall  be  based  on definite qualifications as to character,
   56  ability and training with an emphasis on capacity and ability to provide
       S. 1406                            31                            A. 2106
 
    1  a balanced approach to influencing human behavior and to use judgment in
    2  the enforcement of the rules and  regulations  of  presumptive  release,
    3  parole  and conditional release. Parole officers shall be persons likely
    4  to  exercise  a  strong  and helpful influence upon persons placed under
    5  their supervision while retaining the goal of protecting society.
    6    § 10. Section 259-g of the executive law, as added by chapter  904  of
    7  the laws of 1977, is amended to read as follows:
    8    § 259-g. Applications  for presumptive release or conditional release.
    9  1. All requests for presumptive release or conditional release shall  be
   10  made  in  writing  on  forms prescribed and furnished by the division of
   11  parole. Within one month from the date any such application is received,
   12  if it appears that the applicant is eligible for presumptive release  or
   13  conditional  release  or will be eligible for [conditional] such release
   14  during such month, the conditions of release shall be fixed  in  accord-
   15  ance  with  rules  prescribed  by  the  board.  Such conditions shall be
   16  substantially the same as conditions imposed upon parolees.
   17    2. No person shall be presumptively released or conditionally released
   18  unless [he] the applicant has agreed in writing  to  the  conditions  of
   19  release.  The  agreement  shall  state  in  plain, easily understandable
   20  language the consequences of a violation of one or more  of  the  condi-
   21  tions of release.
   22    §  11.    Paragraphs  (a)  and (b) of subdivision 2, subdivision 3 and
   23  paragraph (a) of subdivision 4 of section 259-i of  the  executive  law,
   24  paragraph  (a)  of  subdivision 2 as amended by chapter 3 of the laws of
   25  1995, paragraph (b) of subdivision 2, the subdivision heading,  subpara-
   26  graphs  (i),  (ii)  and  (iii) of paragraph (a), paragraph (b), subpara-
   27  graphs (i), (ii), (iii), (iv) and (vi) of paragraph (c), paragraph  (d),
   28  subparagraphs (iv), (vi), (ix), (x) and (xi) of paragraph (f), paragraph
   29  (g),  paragraph  (i) of subdivision 3 and paragraph (a) of subdivision 4
   30  as amended by chapter 1 of the laws of 1998, subdivision 3 as  added  by
   31  chapter  904  of the laws of 1977 and subparagraph (iv) of paragraph (a)
   32  of subdivision 3 as added by chapter  435  of  the  laws  of  1984,  are
   33  amended to read as follows:
   34    (a)  [At]  (i)  Except  as provided in subparagraph (ii) of this para-
   35  graph, at least one month prior to the date on which an  inmate  may  be
   36  paroled pursuant to subdivision one of section 70.40 of the penal law, a
   37  member  or  members  as  determined  by  the  rules  of  the board shall
   38  personally interview such inmate and  determine  whether  he  should  be
   39  paroled  in  accordance with the guidelines adopted pursuant to subdivi-
   40  sion four of section two hundred fifty-nine-c of this article. If parole
   41  is not granted upon such review, the inmate shall be informed in writing
   42  within two weeks of such appearance of the factors and reasons for  such
   43  denial  of  parole.  Such  reasons  shall  be given in detail and not in
   44  conclusory terms. The board shall specify a date not more  than  twenty-
   45  four  months from such determination for reconsideration, and the proce-
   46  dures to be followed upon reconsideration shall  be  the  same.  If  the
   47  inmate  is  released,  he  shall  be  given  a copy of the conditions of
   48  parole. Such conditions shall where appropriate, include  a  requirement
   49  that  the  parolee  comply  with  any  restitution  order  and mandatory
   50  surcharge previously imposed by a court of competent  jurisdiction  that
   51  applies  to the parolee. The board of parole shall indicate which resti-
   52  tution collection agency established under subdivision eight of  section
   53  420.10   of  the  criminal  procedure  law,  shall  be  responsible  for
   54  collection of restitution and mandatory surcharge  as  provided  for  in
   55  section  60.35 of the penal law and section eighteen hundred nine of the
   56  vehicle and traffic law.
       S. 1406                            32                            A. 2106
 
    1    (ii) Any inmate who is scheduled for presumptive release  pursuant  to
    2  section  eight hundred six of the correction law shall not appear before
    3  the parole board as provided  in  subparagraph  (i)  of  this  paragraph
    4  unless   such   inmate's  scheduled  presumptive  release  is  withheld,
    5  forfeited, canceled, or revoked subsequently as provided in such law. In
    6  such  event, the inmate shall appear before the parole board for release
    7  consideration as provided in subparagraph (i) of this paragraph as  soon
    8  thereafter as is practicable.
    9    (b)    Persons presumptively released, paroled, conditionally released
   10  or released to post-release supervision from an  institution  under  the
   11  jurisdiction  of  the department of correctional services or the depart-
   12  ment of mental hygiene shall,  while  on  presumptive  release,  parole,
   13  conditional release or post-release supervision, be in the legal custody
   14  of the division of parole until expiration of the maximum term or period
   15  of  sentence,  or expiration of the period of supervision, including any
   16  period of post-release supervision, or return  to  the  custody  of  the
   17  department of correctional services, as the case may be.
   18    3.  Revocation of presumptive release, parole, conditional release and
   19  post-release supervision. (a) (i) If the parole officer having charge of
   20  a presumptively released, paroled or conditionally released person or  a
   21  person  released  to post-release supervision or a person received under
   22  the uniform act for out-of-state parolee supervision shall have  reason-
   23  able  cause to believe that such person has lapsed into criminal ways or
   24  company, or has violated one  or  more  conditions  of  his  presumptive
   25  release,  parole,  conditional release or post-release supervision, such
   26  parole officer shall report such fact  to  a  member  of  the  board  of
   27  parole,  or  to any officer of the division designated by the board, and
   28  thereupon a warrant may be issued for the retaking of  such  person  and
   29  for  his  temporary detention in accordance with the rules of the board.
   30  The retaking and detention of any such person may be  further  regulated
   31  by  rules  and  regulations  of  the division not inconsistent with this
   32  article.  A warrant issued pursuant to  this  section  shall  constitute
   33  sufficient  authority to the superintendent or other person in charge of
   34  any jail, penitentiary, lockup or detention pen to whom it is  delivered
   35  to  hold  in temporary detention the person named therein; except that a
   36  warrant issued with respect to a person who has been released on medical
   37  parole pursuant to section two hundred fifty-nine-r of this article  and
   38  whose  parole  is being revoked pursuant to paragraph (h) of subdivision
   39  four of such section shall constitute authority for the immediate place-
   40  ment of the parolee only into the custody of the department  of  correc-
   41  tional services to hold in temporary detention.  A warrant issued pursu-
   42  ant  to  this  section shall also constitute sufficient authority to the
   43  person in charge of a drug treatment campus, as defined  in  subdivision
   44  twenty  of  section  two of the correction law, to hold the person named
   45  therein, in accordance with the procedural requirements of this section,
   46  for a period of at least ninety  days  to  complete  an  intensive  drug
   47  treatment  program  mandated by the board of parole as an alternative to
   48  presumptive release or parole or conditional release revocation, or  the
   49  revocation of post-release supervision, and shall also constitute suffi-
   50  cient  authority for return of the person named therein to local custody
   51  to hold in temporary detention for further revocation proceedings in the
   52  event said person does not  successfully  complete  the  intensive  drug
   53  treatment  program.  The board's rules shall provide for cancellation of
   54  delinquency  and  restoration  to  supervision   upon   the   successful
   55  completion of the program.
       S. 1406                            33                            A. 2106
 
    1    (ii)  Whenever  a  presumptively  released,  paroled  or conditionally
    2  released person or a person under post-release supervision or a prisoner
    3  received under the uniform act for out-of-state parolee supervision has,
    4  pursuant to this paragraph, been placed in any county jail or penitenti-
    5  ary,  or  a  city  prison  operated by a city having a population of one
    6  million or more inhabitants, the state shall pay to the city  or  county
    7  operating  such facility the actual per day per capita cost as certified
    8  to the state commissioner of correctional services  by  the  appropriate
    9  local official for the care of such person and as approved by the direc-
   10  tor  of  the budget.   The reimbursement rate shall not, however, exceed
   11  thirty dollars per day per capita and forty dollars per day  per  capita
   12  on and after the first day of April, nineteen hundred eighty-eight.
   13    (iii)   A warrant issued for a presumptive release, a parole, a condi-
   14  tional release or a post-release supervision violator may be executed by
   15  any parole officer or any officer authorized to serve  criminal  process
   16  or  any  peace officer, who is acting pursuant to his special duties, or
   17  police officer.  Any such officer to whom such warrant shall  be  deliv-
   18  ered  is  authorized and required to execute such warrant by taking such
   19  person and having him detained as provided in this paragraph.
   20    (iv) Where the alleged violator is detained in another state  pursuant
   21  to  such  warrant  and  is  not under parole supervision pursuant to the
   22  uniform act for out-of-state parolee supervision  or  where  an  alleged
   23  violator  under  parole supervision pursuant to the uniform act for out-
   24  of-state parolee supervision is detained  in  a  state  other  than  the
   25  receiving state, the warrant will not be deemed to be executed until the
   26  alleged  violator  is  detained exclusively on the basis of such warrant
   27  and the division of parole has received notification  that  the  alleged
   28  violator  (A)  has  formally waived extradition to this state or (B) has
   29  been ordered extradited to this state pursuant to  a  judicial  determi-
   30  nation.    The  alleged violator will not be considered to be within the
   31  convenience and practical control of the division of  parole  until  the
   32  warrant is deemed to be executed.
   33    (b)   A person who shall have been taken into custody pursuant to this
   34  subdivision for violation of  one  or  more  conditions  of  presumptive
   35  release,  parole, conditional release or post-release supervision shall,
   36  insofar as practicable, be incarcerated in the county or city  in  which
   37  the arrest occurred.
   38    (c) (i)  Within fifteen days after the warrant for retaking and tempo-
   39  rary detention has been executed, unless the releasee has been convicted
   40  of a new crime committed while under presumptive release, parole, condi-
   41  tional  release  or  post-release supervision, the board of parole shall
   42  afford the alleged presumptive release, parole, conditional  release  or
   43  post-release  supervision  violator  a  preliminary  revocation  hearing
   44  before a hearing officer designated by the board of parole.  Such  hear-
   45  ing  officer  shall  not have had any prior supervisory involvement over
   46  the alleged violator.
   47    (ii)  The preliminary presumptive release, parole, conditional release
   48  or post-release supervision revocation hearing shall be conducted at  an
   49  appropriate  correctional facility, or such other place reasonably close
   50  to the area in which the alleged violation occurred  as  the  board  may
   51  designate.
   52    (iii)   The alleged violator shall, within three days of the execution
   53  of the warrant, be given written notice of the time, place  and  purpose
   54  of  the  hearing  unless  he  is  detained pursuant to the provisions of
   55  subparagraph (iv)  of  paragraph  (a)  of  this  subdivision.  In  those
   56  instances,  the  alleged  violator  will  be given written notice of the
       S. 1406                            34                            A. 2106
 
    1  time, place and purpose of the hearing within five days of the execution
    2  of the warrant.  The notice shall state what conditions  of  presumptive
    3  release,  parole,  conditional  release  or post-release supervision are
    4  alleged  to  have  been  violated,  and in what manner; that such person
    5  shall have the right to appear and speak in  his  own  behalf;  that  he
    6  shall  have  the  right  to introduce letters and documents; that he may
    7  present witnesses who can give relevant information to the hearing offi-
    8  cer; that he has the  right  to  confront  the  witnesses  against  him.
    9  Adverse  witnesses  may be   compelled to attend the preliminary hearing
   10  unless the prisoner has been convicted of a new crime  while  on  super-
   11  vision  or unless the hearing officer finds good cause for their non-at-
   12  tendance.
   13    (iv)  The preliminary hearing shall be  scheduled  to  take  place  no
   14  later  than fifteen days from the date of execution of the warrant.  The
   15  standard of proof at the preliminary hearing shall be probable cause  to
   16  believe  that the presumptive releasee, parolee, conditional releasee or
   17  person under post-release supervision has violated one  or  more  condi-
   18  tions  of  his presumptive release, parole, conditional release or post-
   19  release supervision in an important respect. Proof of  conviction  of  a
   20  crime  committed while under supervision shall constitute probable cause
   21  for the purposes of this section.
   22    (v) At the preliminary hearing, the hearing officer shall  review  the
   23  violation  charges with the alleged violator, direct the presentation of
   24  evidence concerning the alleged violation,  receive  the  statements  of
   25  witnesses  and documentary evidence on behalf of the prisoner, and allow
   26  cross examination of those witnesses in attendance.
   27    (vi)  At the conclusion of the preliminary hearing, the hearing  offi-
   28  cer  shall  inform  the  alleged  violator of his decision as to whether
   29  there is probable cause to believe that the presumptive releasee,  paro-
   30  lee,  conditional  releasee  or  person  on post-release supervision has
   31  violated one or more conditions of his release in an important  respect.
   32  Based solely on the evidence adduced at the hearing, the hearing officer
   33  shall  determine  whether  there  is probable cause to believe that such
   34  person has violated his presumptive release, parole, conditional release
   35  or post-release supervision in an important respect. The hearing officer
   36  shall in writing  state  the  reasons  for  his  determination  and  the
   37  evidence  relied  on.    A copy of the written findings shall be sent to
   38  both the alleged violator and his counsel.
   39    (vii) If the hearing officer is satisfied that there  is  no  probable
   40  cause to believe that such person has violated one or more conditions of
   41  release  in  an  important  respect,  he  shall  dismiss  the  notice of
   42  violation and direct such person be restored to supervision.
   43    (viii) If the hearing officer is  satisfied  that  there  is  probable
   44  cause to believe that such person has violated one or more conditions of
   45  release in an important respect, he shall so find.
   46    (d)  If  a finding of probable cause is made pursuant to this subdivi-
   47  sion either by a determination at a preliminary hearing or by the waiver
   48  thereof, or if the releasee has been convicted  of  a  new  crime  while
   49  under  presumptive  release, parole, conditional release or post-release
   50  supervision, the board's rules shall  provide  for  (i)  declaring  such
   51  person to be delinquent as soon as practicable and shall require reason-
   52  able  and  appropriate action to make a final determination with respect
   53  to the alleged violation or (ii) ordering such person to be restored  to
   54  presumptive  release, parole, conditional release or post-release super-
   55  vision under such circumstances as it may deem appropriate or (iii) when
   56  a presumptive releasee, parolee, conditional releasee or person on post-
       S. 1406                            35                            A. 2106
 
    1  release supervision has been convicted of a new felony  committed  while
    2  under  such  supervision and a new indeterminate or determinate sentence
    3  has been imposed, the board's rules shall provide for a  final  declara-
    4  tion  of  delinquency. The inmate shall then be notified in writing that
    5  his release has been revoked on the basis of the new  conviction  and  a
    6  copy  of  the commitment shall accompany said notification. The inmate's
    7  next appearance before the board shall be governed by the legal require-
    8  ments of said new indeterminate or determinate sentence, or shall  occur
    9  as soon after a final reversal of the conviction as is practicable.
   10    (e)  (i)  If the alleged violator requests a local revocation hearing,
   11  he shall be given a revocation hearing reasonably near the place of  the
   12  alleged  violation  or  arrest  if  he has not been convicted of a crime
   13  committed while under supervision. However, the board may,  on  its  own
   14  motion, designate a case for a local revocation hearing.
   15    (ii)  If  there are two or more alleged violations, the hearing may be
   16  conducted near the place of the violation chiefly relied upon as a basis
   17  for the issuance of the warrant as determined by the board.
   18    (iii) If a local revocation hearing is not ordered pursuant to subpar-
   19  agraph one the alleged violator shall be given a revocation hearing upon
   20  his return to a state correctional facility.
   21    (f) (i) Revocation hearings shall be scheduled to be held within nine-
   22  ty days of the probable cause  determination.  However,  if  an  alleged
   23  violator  requests and receives any postponement of his revocation hear-
   24  ing, or consents to a postponed revocation proceeding initiated  by  the
   25  board, or if an alleged violator, by his actions otherwise precludes the
   26  prompt conduct of such proceedings, the time limit may be extended.
   27    (ii)  The revocation hearing shall be conducted by a presiding officer
   28  who may be a member or a hearing officer  designated  by  the  board  in
   29  accordance with rules of the board.
   30    (iii) Both the alleged violator and an attorney who has filed a notice
   31  of appearance on his behalf in accordance with the rules of the board of
   32  parole  shall be given written notice of the date, place and time of the
   33  hearing as soon as possible but at least  fourteen  days  prior  to  the
   34  scheduled date.
   35    (iv)  The alleged violator shall be given written notice of the rights
   36  enumerated in subparagraph (iii) of paragraph (c) of this subdivision as
   37  well as of his right to present mitigating evidence relevant to restora-
   38  tion to presumptive release, parole, conditional release or post-release
   39  supervision and his right to counsel.
   40    (v)  The alleged violator shall be permitted representation by counsel
   41  at the revocation hearing. In any case where such person is  financially
   42  unable  to  retain  counsel, the criminal court of the city of New York,
   43  the county court or district court in the county where the violation  is
   44  alleged  to  have  occurred  or  where the hearing is held, shall assign
   45  counsel in accordance with the county or city  plan  for  representation
   46  placed in operation pursuant to article eighteen-B of the county law. He
   47  shall  have  the  right to confront and cross-examine adverse witnesses,
   48  unless there is good cause for their non-attendance as determined by the
   49  presiding officer; present witnesses and documentary evidence in defense
   50  of the charges; and present witnesses and documentary evidence  relevant
   51  to  the  question  whether  reincarceration  of  the alleged violator is
   52  appropriate.
   53    (vi)  At the revocation hearing, the charges shall  be  read  and  the
   54  alleged  violator shall be permitted to plead not guilty, guilty, guilty
   55  with explanation or to stand mute.  As to each charge, evidence shall be
   56  introduced through witnesses and documents, if any, in support  of  that
       S. 1406                            36                            A. 2106
 
    1  charge.  At  the conclusion of each witness's direct testimony, he shall
    2  be made available for cross-examination. If the alleged violator intends
    3  to present a defense to the charges or to present evidence of mitigating
    4  circumstances,  the  alleged  violator shall do so after presentation of
    5  all the evidence in support  of  a  violation  of  presumptive  release,
    6  parole, conditional release or post-release supervision.
    7    (vii)  All  persons giving evidence at the revocation hearing shall be
    8  sworn before giving any testimony as provided by law.
    9    (viii) At the conclusion of the  hearing  the  presiding  officer  may
   10  sustain  any  or  all of the violation charges or may dismiss any or all
   11  violation charges. He may sustain a violation charge only if the  charge
   12  is supported by a preponderance of the evidence adduced.
   13    (ix) If the presiding officer is not satisfied that there is a prepon-
   14  derance  of  evidence  in support of the violation, he shall dismiss the
   15  violation, cancel the delinquency and restore the person to  presumptive
   16  release, parole, conditional release or post-release [to] supervision.
   17    (x)   If the presiding officer is satisfied that there is a preponder-
   18  ance of evidence that the alleged violator violated one or  more  condi-
   19  tions  of  release in an important respect, he or she shall so find. For
   20  each violation so found, the presiding officer may (A) direct  that  the
   21  presumptive  releasee, parolee, conditional releasee or person serving a
   22  period of post-release supervision be restored to supervision; (B) as an
   23  alternative to reincarceration, direct the presumptive  releasee,  paro-
   24  lee,  conditional  releasee  or  person serving a period of post-release
   25  supervision be placed in a parole transition facility for a  period  not
   26  to  exceed  one hundred eighty days and subsequent restoration to super-
   27  vision; (C) in the case of presumptive releasee, parolees or conditional
   28  releasees, direct the violator's reincarceration  and  fix  a  date  for
   29  consideration  by  the  board  for re-release on presumptive release, or
   30  parole or conditional release, as the case may be; or (D) in the case of
   31  persons released to a period of  post-release  supervision,  direct  the
   32  violator's reincarceration for a period of at least six months and up to
   33  the  balance of the remaining period of post-release supervision, not to
   34  exceed five years. Where a date has been fixed for the violator's re-re-
   35  lease on presumptive release, parole or conditional release, as the case
   36  may be, the board or board  member  may  waive  the  personal  interview
   37  between  a  member or members of the board and the violator to determine
   38  the suitability for re-release; provided, however, that the board  shall
   39  retain  the  authority  to  suspend the date fixed for re-release and to
   40  require a personal  interview  based  on  the  violator's  institutional
   41  record  or  on  such other basis as is authorized by the rules and regu-
   42  lations of the board.   If an interview is  required,  the  board  shall
   43  notify the violator of the time of such interview in accordance with the
   44  rules  and  regulations  of  the board.   If the violator is placed in a
   45  parole transition facility or restored  to  supervision,  the  presiding
   46  officer may impose such other conditions of presumptive release, parole,
   47  conditional  release,  or post-release supervision as he may deem appro-
   48  priate, as authorized by rules of the board.
   49    (xi) If the presiding officer sustains any violations, he must prepare
   50  a written statement, to be made available to the  alleged  violator  and
   51  his  counsel,  indicating  the  evidence relied upon and the reasons for
   52  revoking presumptive release, parole, conditional  release  or  post-re-
   53  lease supervision, and for the disposition made.
   54    (g)  Revocation of presumptive release, parole, conditional release or
   55  post-release supervision  shall  not  prevent  re-parole  or  re-release
       S. 1406                            37                            A. 2106
 
    1  provided such re-parole or re-release is not inconsistent with any other
    2  provisions of law.
    3    (h) If the alleged violation is not sustained and the alleged violator
    4  is  restored  to supervision, the interruptions specified in subdivision
    5  three of section 70.40 of the penal law shall not apply,  but  the  time
    6  spent in custody in any state or local correctional institution shall be
    7  credited  against  the term of the sentence in accordance with the rules
    8  specified in paragraph (c) of [that] such subdivision.
    9    (i) Where there is reasonable cause  to  believe  that  a  presumptive
   10  releasee,  parolee,  conditional  releasee  or person under post-release
   11  supervision has absconded from supervision the board  may  declare  such
   12  person  to  be delinquent. This paragraph shall not be construed to deny
   13  such person a preliminary revocation hearing upon his retaking,  nor  to
   14  relieve the division of parole of any obligation it may have to exercise
   15  due  diligence to retake the alleged absconder, nor to relieve the paro-
   16  lee or releasee of any obligation he may have to comply with the  condi-
   17  tions of his release.
   18    (a)    Except  for  determinations made upon preliminary hearings upon
   19  allegations of violation of  presumptive  release,  parole,  conditional
   20  release or post-release supervision, all determinations made pursuant to
   21  this section may be appealed in accordance with rules promulgated by the
   22  board.  Any board member who participated in the decision from which the
   23  appeal is taken may not participate in the resolution  of  that  appeal.
   24  The  rules of the board may specify a time within which any appeal shall
   25  be taken and resolved.
   26    § 12. The section heading of section 70.40 of the penal law is amended
   27  to read as follows:
   28  Release on parole; conditional release; presumptive release.
   29    § 13. Subdivision 1 of section 70.40 of the penal law  is  amended  by
   30  adding a new paragraph (c) to read as follows:
   31    (c)  A  person  who  is  serving  one  or  more than one indeterminate
   32  sentence of imprisonment shall, if he or she so  requests,  be  released
   33  from  the institution in which he or she is confined if granted presump-
   34  tive release pursuant to section eight hundred  six  of  the  correction
   35  law.  The  conditions  of release shall be such as may be imposed by the
   36  state board of parole in accordance with the provisions of the executive
   37  law. Every person so released shall be  under  the  supervision  of  the
   38  state  board of parole for a period equal to the unserved portion of his
   39  or her maximum or aggregate maximum term.
   40    § 14. Paragraph (a) of subdivision 3 of section  70.40  of  the  penal
   41  law,  as amended by chapter 1 of the laws of 1998, is amended to read as
   42  follows:
   43    (a) When a person is alleged to have violated the terms of presumptive
   44  release or parole and the state board of parole has declared such person
   45  to be delinquent, the declaration of  delinquency  shall  interrupt  the
   46  person's  sentence  as  of  the  date of the delinquency and such inter-
   47  ruption shall continue until the return of the person to an  institution
   48  under the jurisdiction of the state department of correctional services.
   49    §  15.  This  act  shall take effect April 1, 2003; provided, however,
   50  that
   51    (a) the amendments to paragraph (d) of subdivision 1  and  subdivision
   52  2-a of section 803 of the correction law made by sections one and two of
   53  this  act  shall  not  affect  the repeal of such paragraph (d) and such
   54  subdivision 2-a and shall be deemed to be repealed therewith;
   55    (b) subdivision 2-b of section 803 of the correction law as  added  by
   56  section  three  of  this  act shall expire and be deemed repealed on the
       S. 1406                            38                            A. 2106
 
    1  same date as subdivision 6 of section 76 of chapter 435 of the  laws  of
    2  1997,  as  amended  and shall not affect the expiration and reversion of
    3  such section;
    4    (c)  the  amendments  to  section  805  of  the correction law made by
    5  section four of this act shall not affect the expiration of such section
    6  and shall be deemed to expire therewith;
    7    (d) section 806 of the correction law as added by section five of this
    8  act shall expire and be deemed repealed on the same date as  subdivision
    9  6 of section 76 of chapter 435 of the laws of 1997, as amended;
   10    (e) the amendments to subdivision 4 and paragraph (a) of subdivision 9
   11  of  section  259-a  of the executive law made by section six of this act
   12  shall not affect the repeal or expiration of such subdivisions and shall
   13  be deemed to be repealed or to expire therewith;
   14    (f) the amendments made to subdivision 2 of section 259-c of the exec-
   15  utive law made by section seven of this act shall not affect the expira-
   16  tion of such subdivision and shall be deemed to expire therewith;
   17    (g) the amendments to paragraph (a) of subdivision 2 and  subparagraph
   18  (i) of paragraph (a) and paragraph (d) of subdivision 3 of section 259-i
   19  of the executive law made by section eleven of this act shall not affect
   20  the expiration of such paragraph (a) of subdivision 2, such subparagraph
   21  (i)  of  paragraph (a) and such paragraph (d) of subdivision 3 and shall
   22  be deemed to expire therewith; and
   23    (h) paragraph (c) of subdivision 1 of section 70.40 of the  penal  law
   24  as  added  by  section  thirteen  of this act shall expire and be deemed
   25  repealed on the same date as subdivision 6 of section 76 of chapter  435
   26  of the laws of 1997, as amended.
 
   27                                   PART H
 
   28    Section 1. The section heading and subdivisions 1, 2, 3, 4, 5 and 8 of
   29  section  60.35 of the penal law, the section heading and subdivisions 2,
   30  3 and 4 as amended by chapter 62 of the laws of 1989, subdivision  1  as
   31  amended by section 1 of part L of chapter 57 of the laws of 2000, subdi-
   32  vision  5 as amended and subdivision 8 as added by chapter 3 of the laws
   33  of 1995 and paragraph (a) of subdivision 5 as amended by chapter 385  of
   34  the laws of 1999, are amended to read as follows:
   35    Mandatory  surcharge,  sex offender registration fee, DNA databank fee
   36  and crime victim assistance fee required in certain cases.
   37    1. Except as provided in section eighteen hundred nine of the  vehicle
   38  and  traffic law and section 27.12 of the parks, recreation and historic
   39  preservation law, whenever proceedings in an administrative tribunal  or
   40  a  court  of this state result in a conviction for a felony, a misdemea-
   41  nor, or a violation, as these terms are defined in section 10.00 of this
   42  chapter, there shall be levied at sentencing a mandatory surcharge,  sex
   43  offender  registration  fee, DNA databank fee and a crime victim assist-
   44  ance fee in addition to any sentence required or permitted  by  law,  in
   45  accordance with the following schedule:
   46    (a)  a person convicted of a felony shall pay a mandatory surcharge of
   47  two hundred dollars and a crime victim assistance fee of ten dollars;
   48    (b) a  person  convicted  of  a  misdemeanor  shall  pay  a  mandatory
   49  surcharge  of  one hundred ten dollars and a crime victim assistance fee
   50  of ten dollars;
   51    (c) a person convicted of a violation shall pay a mandatory  surcharge
   52  of fifty dollars and a crime victim assistance fee of ten dollars;
   53    (d)  a person convicted of a sex offense as defined by subdivision two
   54  of section one hundred sixty-eight-a of the correction law or a sexually
       S. 1406                            39                            A. 2106
 
    1  violent offense as defined by subdivision three of section  one  hundred
    2  sixty-eight-a  of  the  correction law shall, in addition to a mandatory
    3  surcharge and crime victim assistance fee, pay a sex offender  registra-
    4  tion fee of fifty dollars.
    5    (e)  a person convicted of a designated offense as defined by subdivi-
    6  sion seven of section nine hundred  ninety-five  of  the  executive  law
    7  shall,  in addition to a mandatory surcharge and crime victim assistance
    8  fee, pay a DNA databank fee of fifty dollars.
    9    2. Where a person is convicted of two or  more  crimes  or  violations
   10  committed  through  a single act or omission, or through an act or omis-
   11  sion which in itself constituted one of the  crimes  or  violations  and
   12  also  was  a  material  element  of  the other, the court shall impose a
   13  mandatory surcharge and a crime victim assistance fee in accordance with
   14  the provisions of this section for the crime or violation which  carries
   15  the  highest  classification,  and  no other sentence to pay a mandatory
   16  surcharge or a crime victim assistance  fee  required  by  this  section
   17  shall  be  imposed.  Where  a  person  is  convicted  of two or more sex
   18  offenses or sexually violent offenses, as defined  by  subdivisions  two
   19  and  three  of  section one hundred sixty-eight-a of the correction law,
   20  committed through a single act or omission, or through an act  or  omis-
   21  sion  which  in  itself  constituted  one of the offenses and also was a
   22  material element of the other, the  court  shall  impose  only  one  sex
   23  offender  registration  fee.  Where a person is convicted of two or more
   24  designated offenses, as defined by subdivision  seven  of  section  nine
   25  hundred ninety-five of the executive law, committed through a single act
   26  or  omission,  or through an act or omission which in itself constituted
   27  one of the offenses and also was a material element of  the  other,  the
   28  court shall impose only one DNA databank fee.
   29    3.  The  mandatory surcharge, sex offender registration fee, DNA data-
   30  bank fee and crime victim assistance fee provided for in subdivision one
   31  of this section shall be paid to the clerk of the court  or  administra-
   32  tive tribunal that rendered the conviction. Within the first ten days of
   33  the  month  following  collection  of  the mandatory surcharge and crime
   34  victim assistance fee, the  collecting  authority  shall  determine  the
   35  amount  of mandatory surcharge and crime victim assistance fee collected
   36  and, if it is an administrative tribunal, or a town or  village  justice
   37  court,  it  shall then pay such money to the state comptroller who shall
   38  deposit such money in the state treasury pursuant to section one hundred
   39  twenty-one of the state finance  law  to  the  credit  of  the  criminal
   40  justice  improvement  account  established by section ninety-seven-bb of
   41  the state finance law. Within the first ten days of the month  following
   42  collection  of  the  sex offender registration fee and DNA databank fee,
   43  the collecting authority shall determine the amount of the sex  offender
   44  registration  fee and DNA databank fee collected and, if it is an admin-
   45  istrative tribunal, or a town or village justice court,  it  shall  then
   46  pay  such money to the state comptroller who shall deposit such money in
   47  the state treasury pursuant to section one  hundred  twenty-one  of  the
   48  state  finance law to the credit of the general fund. If such collecting
   49  authority is any other court of the  unified  court  system,  it  shall,
   50  within  such  period,  pay  such  money  attributable  to  the mandatory
   51  surcharge or crime victim assistance fee to the  state  commissioner  of
   52  taxation  and  finance to the credit of the criminal justice improvement
   53  account established by section ninety-seven-bb of the state finance law.
   54  If such collecting authority is any other court  of  the  unified  court
   55  system, it shall, within such period, pay such money attributable to the
       S. 1406                            40                            A. 2106
 
    1  sex  offender  registration  fee  and  the DNA databank fee to the state
    2  commissioner of taxation and finance to the credit of the general fund.
    3    4.  Any person who has paid a mandatory surcharge, sex offender regis-
    4  tration fee, DNA databank fee or a crime victim assistance fee under the
    5  authority of this section based upon a conviction that  is  subsequently
    6  reversed  or  who  paid a mandatory surcharge, sex offender registration
    7  fee, DNA databank fee  or  a  crime  victim  assistance  fee  under  the
    8  authority  of  this  section  which  is  ultimately determined not to be
    9  required by this section shall be entitled to a refund of such mandatory
   10  surcharge, sex offender registration fee,  DNA  databank  fee  or  crime
   11  victim  assistance  fee  upon  application to the state comptroller. The
   12  state comptroller shall require such proof as is necessary in  order  to
   13  determine whether a refund is required by law.
   14    5.  (a)  When  a  person  who is convicted of a crime or violation and
   15  sentenced to a term of imprisonment has  failed  to  pay  the  mandatory
   16  surcharge,  sex  offender  registration  fee,  DNA databank fee or crime
   17  victim assistance fee required by this section, the clerk of  the  court
   18  that  rendered  the  conviction  shall  notify the superintendent or the
   19  municipal official of the facility where the  person  is  confined.  The
   20  superintendent or the municipal official shall cause any amount owing to
   21  be  collected  from  such  person  during  his term of imprisonment from
   22  moneys to the credit of an inmates' fund or such moneys as may be earned
   23  by a person in a work release program pursuant to section eight  hundred
   24  sixty  of  the correction law. Such moneys attributable to the mandatory
   25  surcharge or crime victim assistance fee shall be paid over to the state
   26  comptroller to the credit of the criminal  justice  improvement  account
   27  established by section ninety-seven-bb of the state finance law and such
   28  moneys attributable to the sex offender registration fee or DNA databank
   29  fee  shall  be  paid  over to the state comptroller to the credit of the
   30  general  fund,  except  that  any  such  moneys  collected   which   are
   31  surcharges,  sex  offender registration fees, DNA databank fees or crime
   32  victim assistance fees levied in relation to convictions obtained  in  a
   33  town or village justice court shall be paid within thirty days after the
   34  receipt  thereof  by  the  superintendent  or  municipal official of the
   35  facility to the justice  of  the  court  in  which  the  conviction  was
   36  obtained.  For  the purposes of collecting such mandatory surcharge, sex
   37  offender registration fee, DNA databank fee and crime victim  assistance
   38  fee,  the  state shall be legally entitled to the money to the credit of
   39  an inmates' fund or money which is earned by an inmate in a work release
   40  program. For purposes of this  subdivision,  the  term  "inmates'  fund"
   41  shall  mean  moneys  in  the  possession of an inmate at the time of his
   42  admission into such facility, funds earned by him  as  provided  for  in
   43  section  one  hundred  eighty-seven  of the correction law and any other
   44  funds received by him or on his behalf and deposited  with  such  super-
   45  intendent or municipal official.
   46    (b)  The  incarceration fee provided for in subdivision two of section
   47  one hundred eighty-nine of the correction law shall not be  assessed  or
   48  collected  if  any  order  of restitution or reparation, fine, mandatory
   49  surcharge, sex offender registration fee,  DNA  databank  fee  or  crime
   50  victim  assistance fee remains unpaid. In such circumstances, any monies
   51  which may lawfully be withheld from the compensation paid to a  prisoner
   52  for  work  performed  while  housed in a general confinement facility in
   53  satisfaction of such an obligation shall first be applied toward  satis-
   54  faction of such obligation.
   55    8.  Subdivision  one  of  section 130.10 of the criminal procedure law
   56  notwithstanding, at the time that the mandatory surcharge, sex  offender
       S. 1406                            41                            A. 2106
 
    1  registration  fee or DNA databank fee is imposed a town or village court
    2  may, and all other courts shall, issue and cause to be served  upon  the
    3  person  required  to pay the mandatory surcharge, sex offender registra-
    4  tion  fee  or  DNA  databank  fee,  a summons directing that such person
    5  appear  before  the  court  regarding  the  payment  of  the   mandatory
    6  surcharge,  sex  offender  registration fee or DNA databank fee if after
    7  sixty days from the date it was imposed it remains  unpaid.  The  desig-
    8  nated  date  of appearance on the summons shall be set for the first day
    9  court is in session falling after the sixtieth day from  the  imposition
   10  of  the  mandatory surcharge, sex offender registration fee or DNA data-
   11  bank fee. The summons shall contain the information required by subdivi-
   12  sion two of section 130.10 of the criminal procedure law except that  in
   13  substitution  for  the  requirement of paragraph (c) of such subdivision
   14  the summons shall state that the person served must appear  at  a  date,
   15  time  and specific location specified in the summons if after sixty days
   16  from the date of issuance the mandatory surcharge, sex  offender  regis-
   17  tration  fee  or  DNA  databank fee remains unpaid.  The court shall not
   18  issue a summons  under  this  subdivision  to  a  person  who  is  being
   19  sentenced to a term of confinement in excess of sixty days in jail or in
   20  the  department  of correctional services. The mandatory surcharges, sex
   21  offender registration fee and DNA databank fees for those persons  shall
   22  be governed by the provisions of section 60.30 of the penal law.
   23    §  2.  Subdivision  5 of section 60.35 of the penal law, as amended by
   24  chapter 385 of the laws of 1999, is amended to read as follows:
   25    5. When a person  who  is  convicted  of  a  crime  or  violation  and
   26  sentenced  to  a  term  of  imprisonment has failed to pay the mandatory
   27  surcharge, sex offender registration fee,  DNA  databank  fee  or  crime
   28  victim  assistance  fee required by this section, the clerk of the court
   29  that rendered the conviction shall  notify  the  superintendent  or  the
   30  municipal  official  of  the  facility where the person is confined. The
   31  superintendent or the municipal official shall cause any amount owing to
   32  be collected from such person  during  his  term  of  imprisonment  from
   33  moneys to the credit of an inmates' fund or such moneys as may be earned
   34  by  a person in a work release program pursuant to section eight hundred
   35  sixty of the correction law. Such moneys attributable to  the  mandatory
   36  surcharge or crime victim assistance fee shall be paid over to the state
   37  comptroller  to  the  credit of the criminal justice improvement account
   38  established by section ninety-seven-bb of the state finance law and such
   39  moneys attributable to the sex offender registration fee or DNA databank
   40  fee shall be paid over to the state comptroller to  the  credit  of  the
   41  general   fund,   except  that  any  such  moneys  collected  which  are
   42  surcharges, sex offender registration fees, DNA databank fees  or  crime
   43  victim  assistance  fees levied in relation to convictions obtained in a
   44  town or village justice court shall be paid within thirty days after the
   45  receipt thereof by the  superintendent  or  municipal  official  of  the
   46  facility  to  the  justice  of  the  court  in  which the conviction was
   47  obtained. For the purposes of collecting such mandatory  surcharge,  sex
   48  offender  registration fee, DNA databank fee and crime victim assistance
   49  fee, the state shall be legally entitled to the money to the  credit  of
   50  an inmates' fund or money which is earned by an inmate in a work release
   51  program.  For  purposes  of  this  subdivision, the term "inmates' fund"
   52  shall mean moneys in the possession of an inmate  at  the  time  of  his
   53  admission  into  such  facility,  funds earned by him as provided for in
   54  section one hundred eighty-seven of the correction  law  and  any  other
   55  funds  received  by  him or on his behalf and deposited with such super-
   56  intendent or municipal official.
       S. 1406                            42                            A. 2106
 
    1    § 3. Subdivision 4 of section 154 of the correction law, as amended by
    2  chapter 661 of the laws of 1988, is amended to read as follows:
    3    4. Payment of court fines, mandatory surcharge, sex offender registra-
    4  tion fee, DNA databank fee, restitution or reparation, or forfeitures.
    5    §  4.  Section  168-b of the correction law is amended by adding a new
    6  subdivision 8 to read as follows:
    7    8. The division shall charge a fee of ten  dollars  each  time  a  sex
    8  offender  registers  any  change  of address or any change of his or her
    9  status of enrollment, attendance, employment or residence at any  insti-
   10  tution  of  higher  education as required by subdivision four of section
   11  one hundred sixty-eight-f of this article. The fee shall be paid to  the
   12  division by the sex offender. The state comptroller is hereby authorized
   13  to deposit such fees into the general fund.
   14    §  5. Subdivision 4 of section 168-f of the correction law, as amended
   15  by chapter 11 of the laws of 2002, is amended to read as follows:
   16    4. Any sex offender shall register with the division no later than ten
   17  calendar days after any change of address or any change of  his  or  her
   18  status  of enrollment, attendance, employment or residence at any insti-
   19  tution of higher education. A fee  of  ten  dollars,  as  authorized  by
   20  subdivision  eight of section one hundred sixty-eight-b of this article,
   21  shall be submitted by the sex offender each time such offender registers
   22  any change of address or any change of his or her status of  enrollment,
   23  attendance,  employment or residence at any institution of higher educa-
   24  tion. Any failure or omission to  submit  the  required  fee  shall  not
   25  affect the acceptance by the division of the change of address or change
   26  of status.
   27    § 6. Subdivision 3 of section 420.30 of the criminal procedure law, as
   28  amended by chapter 3 of the laws of 1995, is amended to read as follows:
   29    3.  Restrictions. In no event shall a  mandatory surcharge, sex offen-
   30  der registration fee, DNA databank fee or crime victim assistance fee be
   31  remitted.
   32    § 7. Subdivisions 1, 2 and 3 of section 420.35 of the criminal  proce-
   33  dure  law,  as  amended  by chapter 3 of the laws of 1995, is amended to
   34  read as follows:
   35    1.  The provisions of section 420.10 of  this  article  governing  the
   36  collection of fines and the provisions of section 420.40 of this article
   37  governing  deferral  of  mandatory surcharges, sex offender registration
   38  fees,  DNA  databank  fees  and  financial  hardship  hearings  and  the
   39  provisions of section 430.20 of this chapter governing the commitment of
   40  a defendant for failure to pay a fine shall be applicable to a mandatory
   41  surcharge,  sex  offender registration fee, DNA databank fee and a crime
   42  victim assistance fee imposed pursuant to  subdivision  one  of  section
   43  60.35  of  the  penal law, subdivision twenty-a of section three hundred
   44  eighty-five of the vehicle and traffic law,  subdivision  nineteen-a  of
   45  section  four hundred one of the vehicle and traffic law, or a mandatory
   46  surcharge imposed pursuant to section eighteen hundred nine of the vehi-
   47  cle and traffic law or  section  27.12  of  the  parks,  recreation  and
   48  historic  preservation law. When the court directs that the defendant be
   49  imprisoned until the mandatory surcharge, sex offender registration  fee
   50  or  DNA  databank  fee is satisfied, it must specify a maximum period of
   51  imprisonment not to exceed fifteen days; provided, however, a court  may
   52  not direct that a defendant be imprisoned until the mandatory surcharge,
   53  sex  offender  registration  fee,  or  DNA  databank fee is satisfied or
   54  otherwise for failure to  pay  the  mandatory  surcharge,  sex  offender
   55  registration  fee or DNA databank fee unless the court makes a contempo-
   56  raneous finding on the record, after according defendant notice  and  an
       S. 1406                            43                            A. 2106
 
    1  opportunity  to  be  heard, that the payment of the mandatory surcharge,
    2  sex offender registration fee or DNA databank fee  upon  defendant  will
    3  not  work an unreasonable hardship upon him or her or his or her immedi-
    4  ate family.
    5    2.  Under no circumstances shall the mandatory surcharge, sex offender
    6  registration fee, DNA databank fee or the crime victim assistance fee be
    7  waived.
    8    3. It shall be the duty of a court of record or administrative  tribu-
    9  nal to report to the division of criminal justice services on the dispo-
   10  sition and collection of mandatory surcharges, sex offender registration
   11  fees  or DNA databank fees and crime victim assistance fees. Such report
   12  shall include, for all cases, whether the surcharge, sex offender regis-
   13  tration fee, DNA databank fee or  crime  victim  assistance  fee  levied
   14  pursuant to subdivision one of section 60.35 of the penal law or section
   15  eighteen  hundred  nine  of the vehicle and traffic law has been imposed
   16  pursuant to law, collected, or  is  to  be  collected  by  probation  or
   17  corrections  or  other officials. The form, manner and frequency of such
   18  reports shall be determined by the commissioner of the division of crim-
   19  inal justice services after consultation with the chief administrator of
   20  the courts and the commissioner of the department of motor vehicles.
   21    § 8. Subdivisions 1, 2, 3, 4 and 5 of section 420.40 of  the  criminal
   22  procedure  law, as added by chapter 3 of the laws of 1995, is amended to
   23  read as follows:
   24    1. Applicability.  The procedure specified in this section governs the
   25  deferral of the obligation to pay all or part of a mandatory  surcharge,
   26  sex  offender  registration  fee or DNA databank fee imposed pursuant to
   27  subdivision one of section 60.35 of the penal law and financial hardship
   28  hearings relating to mandatory surcharges.
   29    2. On an appearance date set forth in a  summons  issued  pursuant  to
   30  subdivision  three  of  section 60.35 of the penal law, section eighteen
   31  hundred nine of the vehicle and traffic law  or  section  27.12  of  the
   32  parks,  recreation  and  historic preservation law, a person upon whom a
   33  mandatory surcharge, sex offender registration fee or DNA  databank  fee
   34  was  levied  shall have an opportunity to present on the record credible
   35  and verifiable information establishing that  the  mandatory  surcharge,
   36  sex offender registration fee or DNA databank fee should be deferred, in
   37  whole  or  in  part,  because,  due  to the indigence of such person the
   38  payment of said surcharge, sex offender registration fee or DNA databank
   39  fee would work an unreasonable hardship on the  person  or  his  or  her
   40  immediate family.
   41    3.  In  assessing such information the superior court shall be mindful
   42  of the mandatory nature of the surcharge, sex offender registration  fee
   43  and  DNA  databank  fee,  and  the important criminal justice and victim
   44  services sustained by such fees.
   45    4. Where a court determines that it will defer part or all of a manda-
   46  tory surcharge, sex  offender  registration  fee  or  DNA  databank  fee
   47  imposed pursuant to subdivision one of section 60.35 of the penal law, a
   48  statement  of such finding and of the facts upon which it is based shall
   49  be made part of the record.
   50    5. A court which defers a  person's  obligation  to  pay  a  mandatory
   51  surcharge,  sex  offender  registration  fee or DNA databank fee imposed
   52  pursuant to subdivision one of section 60.35 of the penal law  shall  do
   53  so  in  a written order. Such order shall not excuse the person from the
   54  obligation to pay the surcharge, sex offender registration  fee  or  DNA
   55  databank  fee.  Rather,  the  court's order shall direct the filing of a
   56  certified copy of the order with the county clerk of the county in which
       S. 1406                            44                            A. 2106
 
    1  the court is situate except where the court which issues such  order  is
    2  the  supreme  court in which case the order itself shall be filed by the
    3  clerk of the court acting in his or her capacity as the county clerk  of
    4  the county in which the court is situate. Such order shall be entered by
    5  the  county  clerk in the same manner as a judgment in a civil action in
    6  accordance with subdivision (a) of rule five  thousand  sixteen  of  the
    7  civil  practice  law and rules.   The order shall direct that any unpaid
    8  balance of the mandatory surcharge, sex offender registration fee or DNA
    9  databank fee may be collected in the same manner as  a  civil  judgment.
   10  The  entered  order  shall  be  deemed  to constitute a judgment-roll as
   11  defined in section five thousand seventeen of the civil practice law and
   12  rules and immediately after entry of the order, the county  clerk  shall
   13  docket  the  entered  order as a money judgment pursuant to section five
   14  thousand eighteen of such law and rules.
   15    § 9. Paragraph (a) of subdivision 2 of section 259-i of the  executive
   16  law,  as amended by chapter 3 of the laws of 1995, is amended to read as
   17  follows:
   18    (a) At least one month prior to the date on which  an  inmate  may  be
   19  paroled pursuant to subdivision one of section 70.40 of the penal law, a
   20  member  or  members  as  determined  by  the  rules  of  the board shall
   21  personally interview such inmate and  determine  whether  he  should  be
   22  paroled  in  accordance with the guidelines adopted pursuant to subdivi-
   23  sion four of section two hundred fifty-nine-c. If parole is not  granted
   24  upon  such  review,  the  inmate shall be informed in writing within two
   25  weeks of such appearance of the factors and reasons for such  denial  of
   26  parole.  Such  reasons  shall  be  given in detail and not in conclusory
   27  terms. The board shall specify a date not more than  twenty-four  months
   28  from  such  determination  for reconsideration, and the procedures to be
   29  followed upon reconsideration shall  be  the  same.  If  the  inmate  is
   30  released,  he  shall  be  given a copy of the conditions of parole. Such
   31  conditions shall where appropriate, include a requirement that the paro-
   32  lee comply with any restitution order [and],  mandatory  surcharge,  sex
   33  offender  registration  fee and DNA databank fee previously imposed by a
   34  court of competent jurisdiction that applies to the parolee.  The  board
   35  of parole shall indicate which restitution collection agency established
   36  under subdivision eight of section 420.10 of the criminal procedure law,
   37  shall  be  responsible  for  collection  of restitution [and], mandatory
   38  surcharge, sex offender registration  fees  and  DNA  databank  fees  as
   39  provided  for  in  section  60.35  of the penal law and section eighteen
   40  hundred nine of the vehicle and traffic law.
   41    § 10. Section 259-j of the executive law, as amended by chapter  1  of
   42  the laws of  1998, is amended to read as follows:
   43    § 259-j. Discharge from parole and conditional release. Except where a
   44  determinate sentence or a sentence with a maximum term of life imprison-
   45  ment was imposed for a felony other than a felony defined in article two
   46  hundred  twenty  of  the  penal law, if the board of parole is satisfied
   47  that an absolute discharge from parole or from conditional release is in
   48  the best interests of society, the board  may  grant  such  a  discharge
   49  prior  to  the expiration of the full maximum term to any person who has
   50  been on unrevoked parole or  conditional  release  for  at  least  three
   51  consecutive  years. A discharge granted under this section shall consti-
   52  tute a termination of the sentence with respect to which it was granted.
   53  No such discharge shall be granted unless the board of parole is  satis-
   54  fied  that  the  parolee,  otherwise  financially able to comply with an
   55  order of restitution and the payment of  any  mandatory  surcharge,  sex
   56  offender  registration  fee  or DNA databank fee previously imposed by a
       S. 1406                            45                            A. 2106
 
    1  court of competent jurisdiction, has made a good faith effort to  comply
    2  therewith.
    3    §  11.  Section  259-j  of the executive law, as separately amended by
    4  chapter 396 of the laws of 1987 and chapter 1 of the laws  of  1998,  is
    5  amended to read as follows:
    6    § 259-j. Discharge from parole and conditional release. Except where a
    7  determinate sentence or a sentence with a maximum term of life imprison-
    8  ment was imposed for a felony other than a felony defined in article two
    9  hundred  twenty  of  the  penal law, if the board of parole is satisfied
   10  that an absolute discharge from parole or from conditional release is in
   11  the best interests of society, the board  may  grant  such  a  discharge
   12  prior  to  the expiration of the full maximum term to any person who has
   13  been on unrevoked parole or  conditional  release  for  at  least  three
   14  consecutive  years. A discharge granted under this section shall consti-
   15  tute a termination of the sentence with respect to which it was granted.
   16  No such discharge shall be granted unless the board of parole is  satis-
   17  fied  that  the  parolee,  otherwise  financially able to comply with an
   18  order of restitution and the payment of  any  mandatory  surcharge,  sex
   19  offender  registration  fee  or DNA databank fee previously imposed by a
   20  court of competent jurisdiction, has made a good faith effort to  comply
   21  therewith.
   22    § 12. Section 4-411 of the village law, as added by chapter 460 of the
   23  laws of 1991, is amended to read as follows:
   24    §  4-411  Disposition  of  fines  and  penalties.  Except as otherwise
   25  provided by law, all fines and penalties imposed for the violation of  a
   26  village  local law, ordinance or regulation shall be the property of the
   27  village, whether or not  the  village  has  established  the  office  of
   28  village  justice.  Nothing in this section shall be deemed to affect the
   29  disposition of mandatory surcharges, sex offender registration fees, DNA
   30  databank fees or crime victim assistance fees  as  provided  by  section
   31  60.35  of  the  penal  law,  or  of  mandatory surcharges as provided by
   32  section eighteen hundred nine of the vehicle  and  traffic  law,  or  of
   33  fines, penalties and forfeitures as provided by section eighteen hundred
   34  three of the vehicle and traffic law relating to traffic offenses.
   35    § 13. This act shall take effect immediately, provided that the amend-
   36  ments to subdivision 5 of section 60.35 of the penal law made by section
   37  one of this act shall be subject to the expiration and reversion of such
   38  subdivision  pursuant to section 74 of chapter 3 of the laws of 1995, as
   39  amended, when upon such date the provisions of section two of  this  act
   40  shall  take  effect; and further provided that the amendments to section
   41  259-j of the executive law made by section ten  of  this  act  shall  be
   42  subject  to  the  expiration  and  reversion of such section pursuant to
   43  section 74 of chapter 3 of the laws of 1995 as amended, when  upon  such
   44  date the provisions of section eleven of this act shall take effect.
 
   45                                   PART I
 
   46    Section  1.  Subdivision  8-a  of section 837 of the executive law, as
   47  amended by chapter 309 of the laws  of  1996,  is  amended  to  read  as
   48  follows:
   49    8-a.  Charge a fee when, pursuant to statute or the regulations of the
   50  division, it conducts a search  of  its  criminal  history  records  and
   51  returns  a  report thereon in connection with an application for employ-
   52  ment or for a license or permit. The division shall adopt and may,  from
   53  time  to  time,  amend a schedule of such fees which shall be in amounts
   54  determined by the division to be  reasonably  related  to  the  cost  of
       S. 1406                            46                            A. 2106
 
    1  conducting such searches and returning reports thereon but, in no event,
    2  shall  any  such  fee  exceed  twenty-five  dollars  and  an  additional
    3  surcharge of [twenty-five] fifty dollars. [Except as provided in section
    4  three hundred fifty-nine-e of the general business law, the fee shall be
    5  paid  to  the  division  by the applicant and shall accompany the appli-
    6  cant's fingerprint card  or  application  form  upon  which  the  search
    7  request  is predicated.] The comptroller is hereby authorized to deposit
    8  such fees into the general fund [effective August thirty-first, nineteen
    9  hundred ninety-six], provided, however, that the monies received by  the
   10  division  of  criminal  justice  services  for payment of the additional
   11  surcharge shall be deposited in equal amounts to the general fund and to
   12  the fingerprint identification and technology account.
   13    § 2. This act shall take effect immediately.
 
   14                                   PART J
 
   15    Section 1. Paragraphs (b) and (d) of subdivision 2 and  subdivision  3
   16  of section 846-m of the executive law, as amended by section 6 of part T
   17  of chapter 57 of the laws of 2000, are amended to read as follows:
   18    (b)  Activities  eligible for funding include, but are not limited to,
   19  the following: prosecution and adjudication  services;  law  enforcement
   20  services;  neighborhood  or  community based programs designed to reduce
   21  the incidence of motor vehicle theft and motor vehicle insurance  fraud;
   22  educational  programs  designed  to  inform  owners  of  motor  vehicles
   23  concerning activities designed to prevent  the  incidence  of  theft  of
   24  motor vehicles and fraudulent claims practices; and programs designed to
   25  examine,  evaluate  and make recommendations relating to the efficacy of
   26  motor vehicle theft prevention devices or  methods  including,  but  not
   27  limited  to,  passive tracking devices designed to identify the location
   28  of a motor vehicle at any given point in time and window  glass  etching
   29  with  vehicle  identification  numbers  or  any other unique identifying
   30  symbol including decal programs such as New York city's operation combat
   31  auto theft (C.A.T.) funds provided under this program shall be  used  to
   32  augment,  and not to supplant, the provider agency's current funding, if
   33  any, for motor vehicle theft and insurance fraud detection,  prevention,
   34  or  reduction  activities, and shall only be used to fund pilot programs
   35  of a specified duration not to extend beyond July  first,  two  thousand
   36  [three] six.
   37    (d)  The  state  comptroller  shall  conduct  an  audit  of all moneys
   38  received and expended by the fund as well as all  other  funds  expended
   39  from any other source for the purposes of this program, and shall submit
   40  a written report detailing such audit to the governor and legislature on
   41  or before March first, two thousand [three] six.
   42    3. This article shall expire on July first, two thousand [three] six.
   43    §  2.  Subdivision  (bbb)  of section 427 of chapter 55 of the laws of
   44  1992, amending the tax law generally and enacting  the  omnibus  revenue
   45  act of 1992, as amended by section 7 of part T of chapter 57 of the laws
   46  of 2000, is amended to read as follows:
   47    (bbb)  the provisions of subdivision (f) of section 9110 of the insur-
   48  ance law as added by section three hundred eighty-six of  this  act  and
   49  section  89-d of the state finance law as added by section three hundred
   50  eighty-eight of this act shall expire on July 1, [2003] 2006.
   51    § 3. Section 9 of part T of chapter 57 of the laws of  2000,  amending
   52  the  state  finance  law  relating  to  a  report  on  automobile  theft
   53  prevention activities of  the  state  police,  is  amended  to  read  as
   54  follows:
       S. 1406                            47                            A. 2106
 
    1    §  9.  This  act shall take effect immediately provided, however, that
    2  the amendments to sections 846-j, 846-k, 846-l and 846-m of  the  execu-
    3  tive  law  made  by  this  act  shall  not affect the expiration of such
    4  sections and shall be deemed to  expire  therewith;  provided,  further,
    5  however,  that  the  provisions of subdivision 4 of section 97-mm of the
    6  state finance law, as added by section eight of this act,  shall  expire
    7  [and be deemed repealed] on July 1, [2003] 2006.
    8    §  4.  This  act shall take effect April 1, 2003; provided however, if
    9  this act shall become law after such date it  shall  take  effect  imme-
   10  diately and shall be deemed to have been in full force and effect on and
   11  after April 1, 2003.
 
   12                                   PART K
 
   13    Section  1.  Section 220.06 of the penal law, as amended by chapter 75
   14  of the laws of 1995, subdivision 4 as amended by chapter 537 of the laws
   15  of 1998 and subdivisions 6 and 7 as added by chapter 635 of the laws  of
   16  1997, is amended to read as follows:
   17  § 220.06 Criminal  possession  of  a  controlled  substance in the fifth
   18             degree.
   19    A person is guilty of criminal possession of a controlled substance in
   20  the fifth degree when he knowingly and unlawfully possesses:
   21    1. a controlled substance with intent to sell it; or
   22    2.  one  or  more  preparations,  compounds,  mixtures  or  substances
   23  containing  a  narcotic  preparation  and  said preparations, compounds,
   24  mixtures or substances are of an aggregate weight  of  [one-half  ounce]
   25  fourteen grams or more; or
   26    3.    one  or  more  preparations,  compounds,  mixtures or substances
   27  containing phencyclidine and said  [phencyclidine  weighs  fifty  milli-
   28  grams]  preparations, compounds, mixtures or substances are of an aggre-
   29  gate weight of five hundred milligrams or more; or
   30    4.  one  or  more  preparations,  compounds,  mixtures  or  substances
   31  containing concentrated cannabis as defined in paragraph (a) of subdivi-
   32  sion  four  of section thirty-three hundred two of the public health law
   33  and said preparations, compounds,  mixtures  or  substances  are  of  an
   34  aggregate weight of [one-fourth ounce] seven grams or more; or
   35    5.    one  or  more  preparations,  compounds,  mixtures or substances
   36  containing cocaine and said [cocaine  weighs  five  hundred  milligrams]
   37  preparations,  compounds,  mixtures  or  substances  are of an aggregate
   38  weight of eight hundred thirty-three milligrams or more.
   39    6.   one or  more  preparations,  compounds,  mixtures  or  substances
   40  containing  ketamine and said [ketamine weighs] preparations, compounds,
   41  mixtures or substances are of an aggregate weight of more than one thou-
   42  sand milligrams; or
   43    7. ketamine and has previously been convicted  of  possession  or  the
   44  attempt to commit possession of ketamine in any amount.
   45    Criminal possession of a controlled substance in the fifth degree is a
   46  class D felony.
   47    §  2. Section 220.09 of the penal law, as amended by chapter 75 of the
   48  laws of 1995, subdivision 10 as amended by chapter 537 of  the  laws  of
   49  1998  and subdivision 13 as amended and subdivision 14 as added by chap-
   50  ter 635 of the laws of 1997, is amended to read as follows:
   51  § 220.09 Criminal possession of a controlled  substance  in  the  fourth
   52             degree.
   53    A person is guilty of criminal possession of a controlled substance in
   54  the fourth degree when he knowingly and unlawfully possesses:
       S. 1406                            48                            A. 2106
 
    1    1.  one  or  more  preparations,  compounds,  mixtures  or  substances
    2  containing a narcotic drug and said preparations, compounds, mixtures or
    3  substances are of an aggregate weight of [one-eighth  ounce]  three  and
    4  one-half grams or more; or
    5    2.  one  or  more  preparations,  compounds,  mixtures  or  substances
    6  containing methamphetamine, its salts, isomers or salts of  isomers  and
    7  said preparations, compounds, mixtures or substances are of an aggregate
    8  weight of [one-half ounce] fourteen grams or more; or
    9    3.  one  or  more  preparations,  compounds,  mixtures  or  substances
   10  containing a narcotic  preparation  and  said  preparations,  compounds,
   11  mixtures  or  substances  are  of  an  aggregate  weight of [two ounces]
   12  fifty-seven grams or more; or
   13    4.   one or  more  preparations,  compounds,  mixtures  or  substances
   14  containing  a  stimulant  and  said [stimulant weighs one gram] prepara-
   15  tions, compounds, mixtures or substances are of an aggregate  weight  of
   16  two grams or more; or
   17    5.    one  or  more  preparations,  compounds,  mixtures or substances
   18  containing lysergic acid diethylamide and said [lysergic acid diethylam-
   19  ide  weighs  one  milligram]  preparations,   compounds,   mixtures   or
   20  substances  are  of  an  aggregate weight of three hundred milligrams or
   21  more; or
   22    6.   one or  more  preparations,  compounds,  mixtures  or  substances
   23  containing  a  hallucinogen  and  said  [hallucinogen weighs twenty-five
   24  milligrams] preparations, compounds, mixtures or substances  are  of  an
   25  aggregate weight of five grams or more; or
   26    7.    one  or  more  preparations,  compounds,  mixtures or substances
   27  containing a hallucinogenic substance and said [hallucinogenic substance
   28  weighs one gram] preparations, compounds, mixtures or substances are  of
   29  an aggregate weight of three grams or more; or
   30    8.    one  or  more  preparations,  compounds,  mixtures or substances
   31  containing a dangerous depressant and [such dangerous depressant  weighs
   32  ten  ounces] said preparations, compounds, mixtures or substances are of
   33  an aggregate weight of two hundred eighty-three grams or more; or
   34    9.   one or  more  preparations,  compounds,  mixtures  or  substances
   35  containing  a  depressant  and  [such depressant weighs two pounds] said
   36  preparations, compounds, mixtures or  substances  are  of  an  aggregate
   37  weight of nine hundred six grams or more; or
   38    10.  one  or  more  preparations,  compounds,  mixtures  or substances
   39  containing concentrated cannabis as defined in paragraph (a) of subdivi-
   40  sion four of section thirty-three hundred two of the public  health  law
   41  and  said  preparations,  compounds,  mixtures  or  substances are of an
   42  aggregate weight of [one ounce] twenty-eight grams or more; or
   43    11.   one or more  preparations,  compounds,  mixtures  or  substances
   44  containing  phencyclidine  and  said  [phencyclidine  weighs two hundred
   45  fifty milligrams] preparations, compounds, mixtures or substances are of
   46  an aggregate weight of two and one-half grams or more; or
   47    12.   one or more  preparations,  compounds,  mixtures  or  substances
   48  containing  methadone  and  said  [methadone  weighs three hundred sixty
   49  milligrams] preparations, compounds, mixtures or substances  are  of  an
   50  aggregate weight of seven grams or more; or
   51    13.    one  or  more  preparations,  compounds, mixtures or substances
   52  containing phencyclidine and said  [phencyclidine  weighs  fifty  milli-
   53  grams]  preparations, compounds, mixtures or substances are of an aggre-
   54  gate weight of five hundred milligrams or more with intent  to  sell  it
   55  and  has previously been convicted of an offense defined in this article
   56  or the attempt or conspiracy to commit any such offense; or
       S. 1406                            49                            A. 2106
 
    1    14.   one or more  preparations,  compounds,  mixtures  or  substances
    2  containing  ketamine and said [ketamine weighs four thousand milligrams]
    3  preparations, compounds, mixtures or  substances  are  of  an  aggregate
    4  weight of four grams or more.
    5    Criminal  possession of a controlled substance in the fourth degree is
    6  a class C felony.
    7    § 3. Section 220.16 of the penal law, as amended by chapter 75 of  the
    8  laws of 1995, is amended to read as follows:
    9  § 220.16 Criminal  possession  of  a  controlled  substance in the third
   10             degree.
   11    A person is guilty of criminal possession of a controlled substance in
   12  the third degree when he knowingly and unlawfully possesses:
   13    1. a narcotic drug with intent to sell it; or
   14    2. a stimulant, hallucinogen, hallucinogenic  substance,  or  lysergic
   15  acid  diethylamide,  with intent to sell it and has previously been con-
   16  victed of an offense defined in this article [two hundred twenty] or the
   17  attempt or conspiracy to commit any such offense; or
   18    3.  one  or  more  preparations,  compounds,  mixtures  or  substances
   19  containing a stimulant with intent to sell it and said [stimulant weighs
   20  one  gram]  preparations,  compounds,  mixtures  or substances are of an
   21  aggregate weight of two grams or more; or
   22    4.  one  or  more  preparations,  compounds,  mixtures  or  substances
   23  containing  lysergic  acid  diethylamide with intent to sell it and said
   24  [lysergic  acid  diethylamide  weighs   one   milligram]   preparations,
   25  compounds,  mixtures  or  substances are of an aggregate weight of three
   26  hundred milligrams or more; or
   27    5.  one  or  more  preparations,  compounds,  mixtures  or  substances
   28  containing  a hallucinogen with intent to sell it and said [hallucinogen
   29  weighs twenty-five  milligrams]  preparations,  compounds,  mixtures  or
   30  substances are of an aggregate weight of five grams or more; or
   31    6.    one  or  more  preparations,  compounds,  mixtures or substances
   32  containing a hallucinogenic substance with intent to sell  it  and  said
   33  [hallucinogenic  substance  weighs  one  gram]  preparations, compounds,
   34  mixtures or substances are of an aggregate  weight  of  three  grams  or
   35  more; or
   36    7.  one  or  more  preparations,  compounds,  mixtures  or  substances
   37  containing methamphetamine, its salts, isomers or salts of isomers  with
   38  intent  to  sell  it  and  said  preparations,  compounds,  mixtures  or
   39  substances are of an aggregate weight of [one-eighth  ounce]  three  and
   40  one-half grams or more; or
   41    8.    one  or  more  preparations,  compounds,  mixtures or substances
   42  containing a stimulant and said [stimulant weighs five  grams]  prepara-
   43  tions,  compounds,  mixtures or substances are of an aggregate weight of
   44  ten grams or more; or
   45    9.   one or  more  preparations,  compounds,  mixtures  or  substances
   46  containing lysergic acid diethylamide and said [lysergic acid diethylam-
   47  ide   weighs  five  milligrams]  preparations,  compounds,  mixtures  or
   48  substances are of an aggregate  weight  of  one  thousand  five  hundred
   49  milligrams or more; or
   50    10.    one  or  more  preparations,  compounds, mixtures or substances
   51  containing a hallucinogen and  said  [hallucinogen  weighs  one  hundred
   52  twenty-five  milligrams] preparations, compounds, mixtures or substances
   53  are of an aggregate weight of twenty-five grams or more; or
   54    11.   one or more  preparations,  compounds,  mixtures  or  substances
   55  containing a hallucinogenic substance and said [hallucinogenic substance
       S. 1406                            50                            A. 2106
 
    1  weighs  five  grams] preparations, compounds, mixtures or substances are
    2  of an aggregate weight of fifteen grams or more; or
    3    12.  one  or  more  preparations,  compounds,  mixtures  or substances
    4  containing a narcotic drug and said preparations, compounds, mixtures or
    5  substances are of an aggregate weight of [one-half ounce] fourteen grams
    6  or more; or
    7    13.   one or more  preparations,  compounds,  mixtures  or  substances
    8  containing    phencyclidine  and said [phencyclidine weighs one thousand
    9  two hundred  fifty  milligrams]  preparations,  compounds,  mixtures  or
   10  substances  are  of  an aggregate weight of twelve and one-half grams or
   11  more.
   12    Criminal possession of a controlled substance in the third degree is a
   13  class B felony.
   14    § 4. Section 220.18 of the penal law, as amended by chapter 75 of  the
   15  laws of 1995, is amended to read as follows:
   16  §  220.18  Criminal  possession  of a controlled substance in the second
   17             degree.
   18    A person is guilty of criminal possession of a controlled substance in
   19  the second degree when he knowingly and unlawfully possesses:
   20    1.  one  or  more  preparations,  compounds,  mixtures  or  substances
   21  containing a narcotic drug and said preparations, compounds, mixtures or
   22  substances  are of an aggregate weight of [two ounces] fifty-seven grams
   23  or more; or
   24    2.  one  or  more  preparations,  compounds,  mixtures  or  substances
   25  containing  methamphetamine,  its salts, isomers or salts of isomers and
   26  said preparations, compounds, mixtures or substances are of an aggregate
   27  weight of [two ounces] fifty-seven grams or more; or
   28    3.   one or  more  preparations,  compounds,  mixtures  or  substances
   29  containing  a  stimulant  and said [stimulant weighs ten grams] prepara-
   30  tions, compounds, mixtures or substances are of an aggregate  weight  of
   31  twenty grams or more; or
   32    4.    one  or  more  preparations,  compounds,  mixtures or substances
   33  containing lysergic acid diethylamide and said [lysergic acid diethylam-
   34  ide weighs twenty-five milligrams] preparations, compounds, mixtures  or
   35  substances  are  of  an  aggregate weight of seven and one-half grams or
   36  more; or
   37    5.   one or  more  preparations,  compounds,  mixtures  or  substances
   38  containing  a  hallucinogen  and  said  [hallucinogen weighs six hundred
   39  twenty-five milligrams] preparations, compounds, mixtures or  substances
   40  are of an aggregate weight of one hundred twenty-five grams or more; or
   41    6.    one  or  more  preparations,  compounds,  mixtures or substances
   42  containing a hallucinogenic substance and said [hallucinogenic substance
   43  weighs  twenty-five  grams]   preparations,   compounds,   mixtures   or
   44  substances are of an aggregate weight of seventy-five grams or more; or
   45    7.    one  or  more  preparations,  compounds,  mixtures or substances
   46  containing methadone and  said  [methadone  weighs  two  thousand  eight
   47  hundred   eighty   milligrams]   preparations,  compounds,  mixtures  or
   48  substances are of an aggregate weight of fifty-eight grams or more.
   49    Criminal possession of a controlled substance in the second degree  is
   50  a class A-II felony.
   51    §  5. Section 220.21 of the penal law, as amended by chapter 75 of the
   52  laws of 1995, is amended to read as follows:
   53  § 220.21 Criminal possession of a  controlled  substance  in  the  first
   54             degree.
   55    A person is guilty of criminal possession of a controlled substance in
   56  the first degree when he knowingly and unlawfully possesses:
       S. 1406                            51                            A. 2106
 
    1    1.  one  or  more  preparations,  compounds,  mixtures  or  substances
    2  containing a narcotic drug and said preparations, compounds, mixtures or
    3  substances are of an aggregate weight of [four ounces] one hundred thir-
    4  teen grams or more; or
    5    2.    one  or  more  preparations,  compounds,  mixtures or substances
    6  containing methadone and said  [methadone  weighs  five  thousand  seven
    7  hundred   sixty   milligrams]   preparations,   compounds,  mixtures  or
    8  substances are of an aggregate weight of one hundred  fifteen  grams  or
    9  more.
   10    Criminal possession of a controlled substance in the first degree is a
   11  class A-I felony.
   12    § 6. Section 220.34 of the penal law, as amended by chapter 280 of the
   13  laws  of 1986, subdivisions 2 and 4 as amended by chapter 75 of the laws
   14  of 1995, subdivision 3 as amended by chapter 537 of the  laws  of  1998,
   15  subdivision  6-a as added by chapter 635 of the laws of 1997, and subdi-
   16  vision 7 as amended and subdivision 8 as added by  chapter  289  of  the
   17  laws of 1998, is amended to read as follows:
   18  § 220.34 Criminal sale of a controlled substance in the fourth degree.
   19    A  person  is guilty of criminal sale of a controlled substance in the
   20  fourth degree when he knowingly and unlawfully sells:
   21    1. a narcotic preparation; or
   22    2.   one or  more  preparations,  compounds,  mixtures  or  substances
   23  containing  a  dangerous  depressant  or a depressant and the [dangerous
   24  depressant weighs ten ounces or  more,  or  the  depressant  weighs  two
   25  pounds]  preparations,  compounds,  mixtures  or substances containing a
   26  dangerous depressant are of an aggregate weight of two  hundred  eighty-
   27  three  grams  or  more,  or  said  preparations,  compounds, mixtures or
   28  substances containing the depressant are of an aggregate weight of  nine
   29  hundred six grams or more; or
   30    3.  concentrated  cannabis  as defined in paragraph (a) of subdivision
   31  four of section thirty-three hundred two of the public health law; or
   32    4.   one or  more  preparations,  compounds,  mixtures  or  substances
   33  containing phencyclidine and [the phencyclidine weighs fifty milligrams]
   34  said preparations, compounds, mixtures or substances are of an aggregate
   35  weight of two and one-half grams or more; or
   36    5. methadone; or
   37    6. any amount of phencyclidine and has previously been convicted of an
   38  offense  defined  in this article or the attempt or conspiracy to commit
   39  any such offense; or
   40    6-a.   one or more preparations,  compounds,  mixtures  or  substances
   41  containing  ketamine and said [ketamine weighs four thousand milligrams]
   42  preparations, compounds, mixtures or  substances  are  of  an  aggregate
   43  weight of four grams or more.
   44    7. a controlled substance in violation of section 220.31 of this arti-
   45  cle, when such sale takes place upon school grounds; or
   46    8. a controlled substance in violation of section 220.31 of this arti-
   47  cle,  when such sale takes place upon the grounds of a child day care or
   48  educational facility  under  circumstances  evincing  knowledge  by  the
   49  defendant  that  such sale is taking place upon such grounds. As used in
   50  this subdivision, the phrase "the grounds of a child day care or  educa-
   51  tional facility" shall have the same meaning as provided for in subdivi-
   52  sion  five  of  section 220.44 of this article. For the purposes of this
   53  subdivision, a rebuttable presumption shall be established that a person
   54  has knowledge that they are within the grounds of a child  day  care  or
   55  educational facility when notice is conspicuously posted of the presence
   56  or proximity of such facility.
       S. 1406                            52                            A. 2106
 
    1    Criminal  sale  of  a  controlled  substance in the fourth degree is a
    2  class C felony.
    3    §  7.  Section  220.39 of the penal law, as amended by chapter 1051 of
    4  the laws of 1973, subdivisions 3, 4, 5, 6, 7 and 8 as amended by chapter
    5  75 of the laws of 1995 and subdivision 9 as added and the closing  para-
    6  graph  as amended by chapter 410 of the laws of 1979, is amended to read
    7  as follows:
    8  § 220.39 Criminal sale of a controlled substance in the third degree.
    9    A person is guilty of criminal sale of a controlled substance  in  the
   10  third degree when he knowingly and unlawfully sells:
   11    1. a narcotic drug; or
   12    2.  a  stimulant,  hallucinogen, hallucinogenic substance, or lysergic
   13  acid diethylamide and  has  previously  been  convicted  of  an  offense
   14  defined in this article [two hundred twenty] or the attempt or conspira-
   15  cy to commit any such offense; or
   16    3.  one  or  more  preparations,  compounds,  mixtures  or  substances
   17  containing a stimulant and the [stimulant weighs one gram] preparations,
   18  compounds, mixtures or substances are of  an  aggregate  weight  of  two
   19  grams or more; or
   20    4.  one  or  more  preparations,  compounds,  mixtures  or  substances
   21  containing lysergic acid diethylamide and the [lysergic acid  diethylam-
   22  ide   weighs   one   milligram]  preparations,  compounds,  mixtures  or
   23  substances are of an aggregate weight of  three  hundred  milligrams  or
   24  more; or
   25    5.  one  or  more  preparations,  compounds,  mixtures  or  substances
   26  containing a  hallucinogen  and  the  [hallucinogen  weighs  twenty-five
   27  milligrams]  preparations,  compounds,  mixtures or substances are of an
   28  aggregate weight of five grams or more; or
   29    6.  one  or  more  preparations,  compounds,  mixtures  or  substances
   30  containing  a hallucinogenic substance and the [hallucinogenic substance
   31  weighs one gram] preparations, compounds, mixtures or substances are  of
   32  an aggregate weight of three grams or more; or
   33    7.  one  or  more  preparations,  compounds,  mixtures  or  substances
   34  containing methamphetamine, its salts, isomers or salts of  isomers  and
   35  the  preparations, compounds, mixtures or substances are of an aggregate
   36  weight of [one-eighth ounce] three and one-half grams or more; or
   37    8.  one  or  more  preparations,  compounds,  mixtures  or  substances
   38  containing phencyclidine and the [phencyclidine weighs two hundred fifty
   39  milligrams]  preparations,  compounds,  mixtures or substances are of an
   40  aggregate weight of two and one-half grams or more; or
   41    9. a narcotic preparation to a person less than twenty-one years old.
   42    Criminal sale of a controlled substance in the third degree is a class
   43  B felony.
   44    § 8. Section 220.41 of the penal law, as added by chapter 276  of  the
   45  laws  of 1973, subdivisions 1, 2, 3, 4, 5, 6 and 7 as amended by chapter
   46  75 of the laws of 1995, is amended to read as follows:
   47  § 220.41 Criminal sale of a controlled substance in the second degree.
   48    A person is guilty of criminal sale of a controlled substance  in  the
   49  second degree when he knowingly and unlawfully sells:
   50    1.  one  or  more  preparations,  compounds,  mixtures  or  substances
   51  containing a narcotic drug and the preparations, compounds, mixtures  or
   52  substances are of an aggregate weight of [one-half ounce] fourteen grams
   53  or more; or
   54    2.  one  or  more  preparations,  compounds,  mixtures  or  substances
   55  containing methamphetamine, its salts, isomers or salts of  isomers  and
       S. 1406                            53                            A. 2106
 
    1  the  preparations, compounds, mixtures or substances are of an aggregate
    2  weight of [one-half ounce] fourteen grams or more; or
    3    3.  one  or  more  preparations,  compounds,  mixtures  or  substances
    4  containing a stimulant and the [stimulant weighs  five  grams]  prepara-
    5  tions,  compounds,  mixtures or substances are of an aggregate weight of
    6  ten grams or more; or
    7    4.  one  or  more  preparations,  compounds,  mixtures  or  substances
    8  containing  lysergic acid diethylamide and the [lysergic acid diethylam-
    9  ide  weighs  five  milligrams]  preparations,  compounds,  mixtures   or
   10  substances  are  of  an  aggregate  weight  of one thousand five hundred
   11  milligrams or more; or
   12    5.  one  or  more  preparations,  compounds,  mixtures  or  substances
   13  containing a hallucinogen and the [hallucinogen weighs one hundred twen-
   14  ty-five  milligrams] preparations, compounds, mixtures or substances are
   15  of an aggregate weight of twenty-five grams or more; or
   16    6.  one  or  more  preparations,  compounds,  mixtures  or  substances
   17  containing  a hallucinogenic substance and the [hallucinogenic substance
   18  weighs five grams] preparations, compounds, mixtures or  substances  are
   19  of an aggregate weight of fifteen grams or more; or
   20    7.  one  or  more  preparations,  compounds,  mixtures  or  substances
   21  containing methadone and  the  [methadone  weighs  three  hundred  sixty
   22  milligrams]  preparations,  compounds,  mixtures or substances are of an
   23  aggregate weight of seven grams or more.
   24    Criminal sale of a controlled substance in  the  second  degree  is  a
   25  class A-II felony.
   26    § 9. Section 220.43 of the penal law, as amended by chapter 785 of the
   27  laws  of 1975, subdivisions 1 and 2 as amended by chapter 75 of the laws
   28  of 1995, is amended to read as follows:
   29  § 220.43 Criminal sale of a controlled substance in the first degree.
   30    A person is guilty of criminal sale of a controlled substance  in  the
   31  first degree when he knowingly and unlawfully sells:
   32    1.  one  or  more  preparations,  compounds,  mixtures  or  substances
   33  containing a narcotic drug and the preparations, compounds, mixtures  or
   34  substances  are of an aggregate weight of [two ounces] fifty-seven grams
   35  or more; or
   36    2.  one  or  more  preparations,  compounds,  mixtures  or  substances
   37  containing  methadone  and  [the  methadone  weighs  two  thousand eight
   38  hundred eighty milligrams] said  preparations,  compounds,  mixtures  or
   39  substances are of an aggregate weight of fifty-eight grams or more.
   40    Criminal sale of a controlled substance in the first degree is a class
   41  A-I felony.
   42    § 10. This act shall take effect April 1, 2003.
 
   43                                   PART L
 
   44    Section  1.  Subparagraph  (ii)  of  paragraph (b) of subdivision 2 of
   45  section 501 of the vehicle and traffic law, as added by chapter  173  of
   46  the laws of 1990, is amended to read as follows:
   47    (ii) H endorsement. Shall be required to transport hazardous materials
   48  as  defined  in  section  one  hundred  three of the hazardous materials
   49  transportation act, public law 93-633, title I, when the vehicle  trans-
   50  porting  such  materials is required to be placarded under the hazardous
   51  materials regulation, 49 CFR part 172, subpart F. A farm  vehicle  shall
   52  be  exempt  from  the requirement for such endorsement when transporting
   53  hazardous materials within one hundred fifty miles of the person's farm.
   54  However, a separate non-commercial endorsement  shall  be  required  for
       S. 1406                            54                            A. 2106
 
    1  such  exempted transportation.  In order to obtain such endorsement, the
    2  license holder must submit  fingerprints  for  purposes  of  a  criminal
    3  history record check pursuant to subdivision six of this section.
    4    § 2. Section 501 of the vehicle and traffic law is amended by adding a
    5  new subdivision 6 to read as follows:
    6    6.  H  endorsement  criminal history record check.  Upon receipt of an
    7  application and completion of all  other  requirements  imposed  by  the
    8  commissioner  for  an  H endorsement to permit the operator to transport
    9  hazardous materials as defined in  section  one  hundred  three  of  the
   10  hazardous materials transportation act, public law 93-633, title I, when
   11  the  vehicle  transporting  such  materials  is required to be placarded
   12  under the hazardous materials regulation, 49 CFR part  172,  subpart  F,
   13  the  commissioner,  subject to the rules and regulations of the division
   14  of criminal justice services, shall initiate a criminal  history  record
   15  check  of  the  person  making the application.   The commissioner shall
   16  obtain from each applicant two sets of fingerprints and the division  of
   17  criminal justice services processing fee imposed pursuant to subdivision
   18  eight-a  of  section eight hundred thirty-seven of the executive law and
   19  any fee imposed by the federal bureau of investigation. The commissioner
   20  shall promptly transmit such fingerprints and fees to  the  division  of
   21  criminal justice services for processing. The federal bureau of investi-
   22  gation  and the division of criminal justice services shall forward such
   23  criminal history record, if any, to the commissioner.  All such criminal
   24  history records processed and sent pursuant to  this  section  shall  be
   25  confidential  pursuant  to  the applicable federal and state laws, rules
   26  and regulations, and shall not be published or in any way  disclosed  to
   27  persons  other than authorized personnel, unless otherwise authorized by
   28  law. Neither the state nor any political subdivision  thereof,  nor  any
   29  agency,  officer  or employee thereof, shall be liable in any action for
   30  damages for any action or inaction of any person or entity  pursuant  to
   31  this  section,  or  for any action or inaction of the state or political
   32  subdivision taken or not taken pursuant to or  with  regard  to  matters
   33  addressed  by  this section. The commissioner shall review such criminal
   34  history record for a conviction within the previous ten years  for:  (i)
   35  any  violent  felony  offense,  as defined in section 70.02 of the penal
   36  law; or (ii) any felony defined  in  article  one  hundred  twenty,  one
   37  hundred  twenty-five,  one  hundred thirty, one hundred thirty-five, one
   38  hundred forty, one hundred forty-five, one hundred  fifty,  one  hundred
   39  fifty-five,  one  hundred sixty, one hundred seventy, one hundred seven-
   40  ty-five, two hundred, two hundred ten, two hundred twenty,  two  hundred
   41  twenty-one,  two  hundred  forty,  two  hundred sixty-five, four hundred
   42  sixty, four hundred seventy, four hundred eighty-five, or  four  hundred
   43  ninety of the penal law or section fifty-three-e of the railroad law; or
   44  (iii)  any  offense  in  another  jurisdiction which includes all of the
   45  essential elements of such offenses described in paragraphs (i) and (ii)
   46  of this subdivision and for which a sentence of  imprisonment  for  more
   47  than one year was authorized in the other jurisdiction and is authorized
   48  in  this  state, regardless of whether such sentence was imposed; or any
   49  of the following federal offenses: improper transportation of a  hazard-
   50  ous material, as defined in 49 U.S.C. 46312, conveying false information
   51  or  threats,  as defined in 49 U.S.C. 46507, espionage, as defined in 18
   52  U.S.C.  793, 794 or 3077, sedition, as defined in 18 U.S.C.  2384,  2385
   53  or  section 4 of the subversive activities control act of 1950, treason,
   54  as defined in 18 U.S.C. 2381 or conspiracy or solicitation,  as  defined
   55  in  18 U.S.C. 371 or 373; or (iv) an attempt or conspiracy to commit any
   56  of the offenses specified in paragraphs (i),  (ii),  or  (iii)  of  this
       S. 1406                            55                            A. 2106
 
    1  subdivision.  In  calculating  such  ten year period, any period of time
    2  during which the person was incarcerated for any reason between the time
    3  of commission of the previous felony and the time of commission  of  the
    4  present  felony  shall  be  excluded  and  such ten year period shall be
    5  extended by a period or periods equal to  the  time  served  under  such
    6  incarceration. After receipt of a criminal history record from the divi-
    7  sion  of  criminal  justice services, if any, and review of such record,
    8  the commissioner shall promptly notify the applicant whether he  or  she
    9  will  be  granted  an  H endorsement based upon the applicant's criminal
   10  history. When the commissioner denies an  applicant  an  H  endorsement,
   11  such  applicant  shall be afforded notice and an opportunity to be heard
   12  and offer proof in opposition to such determination.  Upon  request  and
   13  pursuant  to  the  rules  and  regulations  of  the division of criminal
   14  justice services, any applicant may obtain, review and  seek  correction
   15  of his or her criminal history record.
   16    § 3. This act shall take effect immediately.
 
   17                                   PART M
 
   18    Section  1. Section 2 of chapter 887 of the laws of 1983, amending the
   19  correction law relating to the psychological testing of  candidates,  as
   20  amended  by  chapter  95  of  the  laws  of  2001, is amended to read as
   21  follows:
   22    § 2. This act shall take effect on the one hundred eightieth day after
   23  it shall have become a law and shall remain in effect until September 1,
   24  [2003] 2005.
   25    § 2. Section 3 of chapter 428 of the laws of 1999, amending the execu-
   26  tive law and the criminal  procedure  law,  relating  to  expanding  the
   27  geographic  area of employment of certain police officers, as amended by
   28  chapter 95 of the laws of 2001, is amended to read as follows:
   29    § 3. This act shall take effect on the  first  day  of  November  next
   30  succeeding  the  date  on  which  it  shall have become a law, and shall
   31  remain in effect until the first day of November, [2003] 2005,  when  it
   32  shall expire and be deemed repealed.
   33    §  3.  Section  3  of  chapter  886  of the laws of 1972, amending the
   34  correction law and the penal law,  relating  to  prisoner  furloughs  in
   35  certain cases and the crime of absconding therefrom, as amended by chap-
   36  ter 95 of the laws of 2001, is amended to read as follows:
   37    §  3.  This act shall take effect 60 days after it shall have become a
   38  law and shall remain in effect until September 1, [2003] 2005.
   39    § 4. Section 20 of chapter 261 of the laws of 1987, amending  chapters
   40  50, 53 and 54 of the laws of 1987, the correction law, the penal law and
   41  other  chapters and laws relating to correctional facilities, as amended
   42  by chapter 95 of the laws of 2001, is amended to read as follows:
   43    § 20. This act shall take effect immediately except that section thir-
   44  teen of this act shall expire and be of no further force  or  effect  on
   45  and  after  September  1,  [2003]  2005  and  shall not apply to persons
   46  committed to the custody of the department after such date, and provided
   47  further that the commissioner of correctional services shall report each
   48  January first and July first during such time as the earned  eligibility
   49  program is in effect, to the chairmen of the senate crime and correction
   50  committee,  the  senate codes committee, the assembly correction commit-
   51  tee, and the assembly codes  committee,  the  standards  in  effect  for
   52  earned  eligibility  during  the  prior  six-month period, the number of
   53  inmates subject to the provisions of earned eligibility, the number  who
   54  actually  received certificates of earned eligibility during that period
       S. 1406                            56                            A. 2106
 
    1  of time, the number of inmates with certificates who are granted  parole
    2  upon  their first consideration for parole, the number with certificates
    3  who are denied parole upon their first consideration, and the number  of
    4  individuals  granted and denied parole who did not have earned eligibil-
    5  ity certificates.
    6    § 5. Subdivision (q) of section 427 of chapter 55 of the laws of 1992,
    7  amending the tax law and other laws relating to taxes, surcharges,  fees
    8  and funding, as amended by chapter 95 of the laws of 2001, is amended to
    9  read as follows:
   10    (q)  the  provisions  of  section  two hundred eighty-four of this act
   11  shall remain in effect until September 1, [2003] 2005 and be  applicable
   12  to all persons entering the program on or before August 31, [2003] 2005.
   13    §  6.  Section  10  of  chapter  339 of the laws of 1972, amending the
   14  correction law and the  penal  law  relating  to  inmate  work  release,
   15  furlough  and  leave,  as  amended by chapter 95 of the laws of 2001, is
   16  amended to read as follows:
   17    § 10. This act shall take effect 30 days after it shall have become  a
   18  law  and  shall  remain  in  effect  until September 1, [2003] 2005, and
   19  provided further that the commissioner of  correctional  services  shall
   20  report each January first, and July first, to the chairman of the senate
   21  crime  victims, crime and correction committee, the senate codes commit-
   22  tee, the assembly correction committee, and the assembly  codes  commit-
   23  tee,  the  number of eligible inmates in each facility under the custody
   24  and control of the commissioner who have applied  for  participation  in
   25  any  program  offered under the provisions of work release, furlough, or
   26  leave, and the number of such inmates who have been approved for partic-
   27  ipation.
   28    § 7. Subdivision (c) of section 46 of chapter 60 of the laws of  1994,
   29  relating  to certain provisions which impact upon expenditure of certain
   30  appropriations made by chapter 50 of the laws of 1994 enacting the state
   31  operations budget, as amended by chapter 95 of  the  laws  of  2001,  is
   32  amended to read as follows:
   33    (c)  sections forty-one and forty-two of this act shall expire Septem-
   34  ber  1,  [2003] 2005; provided, that the provisions of section forty-two
   35  of this act shall apply to inmates entering the work release program  on
   36  or after such effective date; and
   37    §  8.  Section  5  of  chapter  554  of the laws of 1986, amending the
   38  correction law and the penal law relating  to  providing  for  community
   39  treatment  facilities  and establishing the crime of absconding from the
   40  community treatment facility, as amended by chapter 95 of  the  laws  of
   41  2001, is amended to read as follows:
   42    §  5.  This act shall take effect immediately and shall remain in full
   43  force and effect until September 1, [2003] 2005,  and  provided  further
   44  that the commissioner of correctional services shall report each January
   45  first  and July first during such time as this legislation is in effect,
   46  to the chairmen of the senate  crime  and  correctional  committee,  the
   47  senate  codes  committee,  the  assembly  correction  committee, and the
   48  assembly codes committee, the number of individuals who are released  to
   49  community  treatment  facilities  during  the previous six-month period,
   50  including the total number for each date at each facility  who  are  not
   51  residing  within  the  facility,  but  who are required to report to the
   52  facility on a daily or less frequent basis.
   53    § 9. Subdivision h of section 74 of chapter 3 of  the  laws  of  1995,
   54  amending the correction law and other laws relating to the incarceration
   55  fee, as amended by chapter 95 of the laws of 2001, is amended to read as
   56  follows:
       S. 1406                            57                            A. 2106
 
    1    h.  Section fifty-two of this act shall be deemed to have been in full
    2  force and effect on and after April 1, 1995; provided, however, that the
    3  provisions of section 189 of the correction law, as amended  by  section
    4  fifty-five of this act, subdivision 5 of section 60.35 of the penal law,
    5  as  amended  by  section fifty-six of [the] this act, and section fifty-
    6  seven of this act shall expire September 1, [2003] 2005, when upon  such
    7  date the amendments to the correction law and penal law made by sections
    8  fifty-five  and  fifty-six of this act shall revert to and be read as if
    9  the provisions of this act had  not  been  enacted;  provided,  further,
   10  however, that sections sixty-two, sixty-three and sixty-four of this act
   11  shall be deemed to have been in full force and effect on and after March
   12  1,  1995  and  shall be deemed repealed April 1, 1996 and upon such date
   13  the provisions of subsection (e) of section 9110 of  the  insurance  law
   14  and  subdivision 2 of section 89-d of the state finance law shall revert
   15  to and be read as set out in law on the date immediately  preceding  the
   16  effective date of sections sixty-two and sixty-three of this act;
   17    §  10.  Section  7  of  chapter  79  of the laws of 1989, amending the
   18  correction law and other laws relating to  release  and  supervision  of
   19  persons  serving  a  definite  sentence, as amended by chapter 95 of the
   20  laws of 2001, is amended to read as follows:
   21    § 7. This act shall take effect immediately and shall remain in effect
   22  until September 1,  [2003]  2005,  at  which  time  article  12  of  the
   23  correction law and section 257-b of the executive law, as added, respec-
   24  tively, by sections one and two of this act, shall be repealed. In addi-
   25  tion,  on  such  date  the  amendatory  deletions  and additions made by
   26  sections three through six of this act shall likewise be repealed.
   27    § 11. Subdivision (z) of section 427 of chapter  55  of  the  laws  of
   28  1992, amending the tax law and other laws relating to taxes, surcharges,
   29  fees  and  funding,  as  amended  by  chapter 95 of the laws of 2001, is
   30  amended to read as follows:
   31    (z) the provisions of section three hundred  eighty-one  of  this  act
   32  shall  apply  to  all persons supervised by the division of parole on or
   33  after the effective date of this act, provided however, that subdivision
   34  9 of section 259-a of the executive  law,  as  added  by  section  three
   35  hundred  eighty-one  of  this  act,  shall expire on September 1, [2003]
   36  2005;
   37    § 12. Subdivision (aa) of section 427 of chapter 55  of  the  laws  of
   38  1992, amending the tax law and other laws relating to taxes, surcharges,
   39  fees  and  funding,  as  amended  by  chapter 95 of the laws of 2001, is
   40  amended to read as follows:
   41    (aa) the  provisions  of  sections  three  hundred  eighty-two,  three
   42  hundred  eighty-three  and  three  hundred eighty-four of this act shall
   43  expire on September 1, [2003] 2005;
   44    § 13. Section 12 of chapter 907 of the  laws  of  1984,  amending  the
   45  correction  law,  the New York City criminal court act and the executive
   46  law relating to prison and jail housing and  alternatives  to  detention
   47  and  incarceration  programs,  as  amended  by chapter 95 of the laws of
   48  2001, is amended to read as follows:
   49    § 12.  This  act  shall  take  effect  immediately,  except  that  the
   50  provisions  of sections one through ten of this act shall remain in full
   51  force and effect until September 1, [2003]  2005  on  which  date  those
   52  provisions shall be deemed to be repealed.
   53    §  14.    Subdivision (p) of section 406 of chapter 166 of the laws of
   54  1991, amending the tax law and other laws relating to taxes, as  amended
   55  by chapter 95 of the laws of 2001, is amended to read as follows:
       S. 1406                            58                            A. 2106
 
    1    (p) The amendments to section 1809 of the vehicle and traffic law made
    2  by sections three hundred thirty-seven and three hundred thirty-eight of
    3  this  act  shall not apply to any offense committed prior to such effec-
    4  tive date; provided, further, that section three  hundred  forty-one  of
    5  this act shall take effect immediately and shall expire November 1, 1993
    6  at  which  time  it  shall  be  deemed  repealed; sections three hundred
    7  forty-five and three hundred forty-six of this  act  shall  take  effect
    8  July  1,  1991;  sections three hundred fifty-five, three hundred fifty-
    9  six, three hundred fifty-seven and three hundred fifty-nine of this  act
   10  shall  take  effect immediately and shall expire June 30, 1995 and shall
   11  revert to and be read as if this act had not been enacted; section three
   12  hundred fifty-eight of this act shall take effect immediately and  shall
   13  expire  June 30, 1998 and shall revert to and be read as if this act had
   14  not been enacted; section three hundred sixty-four through three hundred
   15  sixty-seven of this act shall apply to claims filed  on  or  after  such
   16  effective  date; sections three hundred sixty-nine, three hundred seven-
   17  ty-two, three hundred seventy-three, three hundred  seventy-four,  three
   18  hundred  seventy-five  and  three  hundred seventy-six of this act shall
   19  remain in effect until November 1, [2003] 2005, at which time they shall
   20  be deemed repealed; provided,  however,  that  the  mandatory  surcharge
   21  provided  in  section three hundred seventy-four of this act shall apply
   22  to parking violations occurring on or after  said  effective  date;  and
   23  provided  further that the amendments made to section 235 of the vehicle
   24  and traffic law by section three hundred seventy-two of  this  act,  the
   25  amendments  made  to  section  1809  of  the  vehicle and traffic law by
   26  sections three hundred thirty-seven and three  hundred  thirty-eight  of
   27  this  act  and  the amendments made to section 215-a of the labor law by
   28  section three hundred seventy-five of this act shall expire on  November
   29  1,  [2003]  2005  and upon such date the provisions of such subdivisions
   30  and sections shall revert to and be read as if the  provisions  of  this
   31  act  had  not  been  enacted;  the amendments to subdivisions 2 and 3 of
   32  section 400.05 of the penal law made by sections three hundred  seventy-
   33  seven  and  three hundred seventy-eight of this act shall expire on July
   34  1, 1992 and upon such date the provisions  of  such  subdivisions  shall
   35  revert  and  shall be read as if the provisions of this act had not been
   36  enacted; the state board of law examiners shall take such action  as  is
   37  necessary to assure that all applicants for examination for admission to
   38  practice  as  an  attorney and counsellor at law shall pay the increased
   39  examination fee provided for by the amendment made to section 465 of the
   40  judiciary law by section three hundred eighty of this act for any  exam-
   41  ination given on or after the effective date of this act notwithstanding
   42  that an applicant for such examination may have prepaid a lesser fee for
   43  such examination as required by the provisions of such section 465 as of
   44  the  date  prior  to  the  effective date of this act; the provisions of
   45  section 306-a of the civil practice law and rules as  added  by  section
   46  three  hundred eighty-one of this act shall apply to all actions pending
   47  on or commenced on or after September 1, 1991, provided,  however,  that
   48  for  the  purposes of this section service of such summons made prior to
   49  such date shall be deemed to have been completed on September  1,  1991;
   50  the  provisions  of section three hundred eighty-three of this act shall
   51  apply to all money deposited  in  connection  with  a  cash  bail  or  a
   52  partially  secured  bail  bond  on or after such effective date; and the
   53  provisions of sections  three  hundred  eighty-four  and  three  hundred
   54  eighty-five  of  this  act  shall  apply  only to jury service commenced
   55  during a judicial term beginning on or after the effective date of  this
   56  act; provided, however, that nothing contained herein shall be deemed to
       S. 1406                            59                            A. 2106
 
    1  affect  the  application,  qualification,  expiration  or  repeal of any
    2  provision of law amended by any section of this act and such  provisions
    3  shall  be  applied or qualified or shall expire or be deemed repealed in
    4  the same manner, to the same extent and on the same date as the case may
    5  be as otherwise provided by law;
    6    § 15. Subdivision 8 of section 1809 of the vehicle and traffic law, as
    7  amended  by  chapter  95  of  the  laws  of  2001, is amended to read as
    8  follows:
    9    8. The provisions of this section shall only apply to offenses commit-
   10  ted on or before October thirty-first, two thousand [three] five.
   11    § 16. Subdivision (r) of section 427 of chapter  55  of  the  laws  of
   12  1992, amending the tax law and other laws relating to taxes, surcharges,
   13  fees  and  funding,  as  amended  by  chapter 95 of the laws of 2001, is
   14  amended to read as follows:
   15    (r) the provisions of sections  two  hundred  eighty-six  through  two
   16  hundred  ninety-one  of  this act shall apply to all persons released on
   17  medical parole prior to September 1, [2003] 2005, and shall  expire  and
   18  be of no further effect on September 1, [2003] 2005;
   19    §  17. Section 6 of chapter 713 of the laws of 1988 amending the vehi-
   20  cle and traffic law relating to the ignition interlock  device  program,
   21  as  amended  by  chapter  86  of the laws of 2001, is amended to read as
   22  follows:
   23    § 6. This act shall take  effect  on  the  first  day  of  April  next
   24  succeeding  the  date  on  which  it  shall have become a law; provided,
   25  however, that effective immediately, the addition, amendment  or  repeal
   26  of  any rule or regulation necessary for the implementation of the fore-
   27  going sections of this act on their effective  date  is  authorized  and
   28  directed  to  be made and completed on or before such effective date and
   29  shall remain in full force and effect  until  the  first  day  of  July,
   30  [2003]  2005  when  upon  such  date the provisions of this act shall be
   31  deemed repealed.
   32    § 18. Paragraph a of subdivision 6 of section 76 of chapter 435 of the
   33  laws of 1997 amending the military law and other laws relating to  vari-
   34  ous  provisions,  as amended by section 1 of part D of chapter 81 of the
   35  laws of 2002, is amended to read as follows:
   36    a. sections forty-three through forty-five of this  act  shall  expire
   37  and be deemed repealed on September 1, [2003] 2005;
   38    §  19. Section 4 of part D of chapter 412 of the laws of 1999 amending
   39  the civil practice law and rules and the court of claims act relating to
   40  prisoner litigation reform, as amended by section 1 of part F of chapter
   41  81 of the laws of 2002, is amended to read as follows:
   42    § 4. This act shall take effect 120 days after it shall have become  a
   43  law  and shall remain in full force and effect until September 1, [2003]
   44  2005, when upon such date it shall expire.
   45    § 20. This act shall take effect immediately and shall  be  deemed  to
   46  have been in full force and effect on and after April 1, 2003.
 
   47                                   PART N
 
   48    Section 1.  Section 722-b of the county law, as amended by chapter 317
   49  of  the laws of 1987 and the opening paragraph as amended by chapter 453
   50  of the laws of 1999, is amended to read as follows:
   51    § 722-b. Compensation and reimbursement for representation.    1.  All
   52  counsel assigned in accordance with a plan of a bar association conform-
   53  ing  to  the  requirements  of  section seven hundred twenty-two of this
   54  article whereby the services of private counsel are rotated and  coordi-
       S. 1406                            60                            A. 2106
 
    1  nated  by an administrator shall at the conclusion of the representation
    2  receive [compensation at a rate not exceeding forty]:
    3    (a)  for  representation of a person entitled to representation by law
    4  who is initially charged with a misdemeanor or  lesser  offense  and  no
    5  felony,  compensation  for  such misdemeanor or lesser offense represen-
    6  tation at a rate of sixty dollars per hour for time [expended  in  court
    7  or  before  a  magistrate,  judge  or justice,] reasonably expended, and
    8  shall receive reimbursement for expenses reasonably incurred; and [twen-
    9  ty-five]
   10    (b) for representation of a person in all other cases governed by this
   11  article, including all representation in  an  appellate  court,  compen-
   12  sation  at  a  rate of seventy-five dollars per hour for time reasonably
   13  expended [out of court], and shall receive  reimbursement  for  expenses
   14  reasonably incurred[; except that counsel assigned for representation in
   15  an  appellate  court  shall receive compensation at a rate not exceeding
   16  forty dollars per hour for time reasonably expended, whether in court or
   17  out of court. Where a defendant is charged with a  crime  which  may  be
   18  punishable  by  death  compensation  shall  not exceed two thousand four
   19  hundred dollars where one counsel  has  been  assigned,  and  shall  not
   20  exceed three thousand two hundred dollars where two or more counsel have
   21  been assigned. Where a defendant is charged with one or more other felo-
   22  nies,  compensation  shall  not exceed one thousand two hundred dollars.
   23  Where a defendant is charged with one or more other crimes, compensation
   24  shall not exceed eight hundred dollars. For representation  pursuant  to
   25  the provisions of section two hundred sixty-two of the family court act,
   26  article six-C of the correction law or section four hundred seven of the
   27  surrogate's  court  procedure  act,  compensation shall not exceed eight
   28  hundred dollars. For representation upon the hearing of a motion  for  a
   29  writ  of  error  coram nobis or a motion to vacate judgment or set aside
   30  sentence made pursuant to article four hundred  forty  of  the  criminal
   31  procedure  law, compensation shall not exceed eight hundred dollars. For
   32  representation in the court of appeals on an appeal from a  judgment  of
   33  death,  compensation shall not exceed two thousand eight hundred dollars
   34  where one counsel has been assigned, and shall not exceed three thousand
   35  two hundred dollars where two or more counsel have  been  assigned.  For
   36  representation  in  an  appellate  court on an appeal from a judgment of
   37  conviction for one or more other felonies, compensation shall not exceed
   38  one thousand two hundred dollars. For  representation  in  an  appellate
   39  court on an appeal in any other criminal action or proceeding, or on any
   40  appeal  described  in  section eleven hundred twenty of the family court
   41  act or section four hundred seven of  the  surrogate's  court  procedure
   42  act, compensation shall not exceed eight hundred dollars].
   43    2.  Except as provided in this section, compensation for time expended
   44  in providing representation:
   45    (a) pursuant to paragraph (a) of subdivision one of this section shall
   46  not exceed one thousand six hundred dollars; and
   47    (b) pursuant to paragraph (b) of subdivision one of this section shall
   48  not exceed four thousand dollars.
   49    3. For representation on an  appeal,  compensation  and  reimbursement
   50  shall  be  fixed  by  the appellate court. For all other representation,
   51  compensation and reimbursement shall be fixed by the [court where  judg-
   52  ment of conviction or acquittal or order of dismissal was entered] trial
   53  court  judge.  In extraordinary circumstances a trial or appellate court
   54  may provide for compensation in excess of the foregoing limits  and  for
   55  payment  of  compensation  and  reimbursement  for  expenses  before the
   56  completion of the representation.
       S. 1406                            61                            A. 2106
 
    1    4. Each claim for compensation and reimbursement shall be supported by
    2  a sworn statement  specifying  the  time  expended,  services  rendered,
    3  expenses  incurred  and  reimbursement  or  compensation  applied for or
    4  received in the same case from any other  source.  No  counsel  assigned
    5  hereunder  shall  seek  or accept any fee for representing the party for
    6  whom he or she is assigned without  approval  of  the  court  as  herein
    7  provided.
    8    § 2. Section 722-c of the county law, as amended by chapter 682 of the
    9  laws  of 1977 and the opening paragraph as amended by chapter 453 of the
   10  laws of 1999, is amended to read as follows:
   11    § 722-c. Services other than counsel. Upon a finding in  an  ex  parte
   12  proceeding  that  investigative,  expert or other services are necessary
   13  and that the defendant or other person described in section two  hundred
   14  forty-nine  or  section  two  hundred sixty-two of the family court act,
   15  article six-C of the correction law or section four hundred seven of the
   16  surrogate's court procedure act, is financially unable to  obtain  them,
   17  the court shall authorize counsel, whether or not assigned in accordance
   18  with  a  plan, to obtain the services on behalf of the defendant or such
   19  other person. The court upon a finding that timely procurement of neces-
   20  sary services could not await  prior  authorization  may  authorize  the
   21  services  nunc  pro  tunc.  The court shall determine reasonable compen-
   22  sation for the services and direct payment to the  person  who  rendered
   23  them  or  to the person entitled to reimbursement. Only in extraordinary
   24  circumstances may the court provide for compensation in excess of [three
   25  hundred] one thousand dollars per investigative, expert or other service
   26  provider.
   27    Each claim for compensation shall be supported by  a  sworn  statement
   28  specifying  the  time expended, services rendered, expenses incurred and
   29  reimbursement or compensation applied for or received in the  same  case
   30  from any other source.
   31    §  3.  Subdivision 3 of section 35 of the judiciary law, as amended by
   32  chapter 317 of the laws of 1987, is amended to read as follows:
   33    3. No counsel assigned pursuant to this section shall seek  or  accept
   34  any fee for representing the person for whom he or she is assigned with-
   35  out  approval  of the court as herein provided. Whenever it appears that
   36  such person is financially  able  to  obtain  counsel  or  make  partial
   37  payment  for  the  representation,  counsel  may report this fact to the
   38  court and the court may terminate the assignment or  authorize  payment,
   39  as  the  interests  of  justice  may  dictate,  to such counsel. Counsel
   40  assigned hereunder shall at the conclusion of the representation receive
   41  compensation at a rate [not exceeding forty] of seventy-five dollars per
   42  hour for time [expended in court, and twenty-five dollars per  hour  for
   43  time]  reasonably  expended [out of court], and shall receive reimburse-
   44  ment for expenses reasonably incurred[;  except  that  counsel  assigned
   45  hereunder for representation in an appellate court shall receive compen-
   46  sation  at  a rate not exceeding forty dollars per hour for time reason-
   47  ably expended, whether in court or out  of  court].  For  representation
   48  upon  a  hearing,  compensation  and reimbursement shall be fixed by the
   49  court wherein the hearing was  held  and  such  compensation  shall  not
   50  exceed  [eight  hundred] four thousand dollars. For representation in an
   51  appellate court, compensation and reimbursement shall be fixed  by  such
   52  court  and such compensation shall not exceed [eight hundred] four thou-
   53  sand dollars[, except that when counsel is assigned  pursuant  to  para-
   54  graph  (b)  of  subdivision  one  of  this section for representation on
   55  appeal from (i) a judgment of death, compensation shall not  exceed  two
   56  thousand  eight  hundred dollars where one counsel has been assigned and
       S. 1406                            62                            A. 2106
 
    1  shall not exceed three thousand two hundred dollars where  two  or  more
    2  counsel  have  been  assigned,  or (ii) a judgment of conviction for any
    3  other felony, compensation shall not exceed  one  thousand  two  hundred
    4  dollars].  In  extraordinary  circumstances  the  court  may provide for
    5  compensation in excess of the foregoing limits.
    6    § 4. Paragraph (a) of subdivision 3 of section 226 of the vehicle  and
    7  traffic  law,  as amended by chapter 505 of the laws of 1997, is amended
    8  to read as follows:
    9    (a) If the person charged with the violation shall fail to answer  the
   10  summons  as  provided herein, the commissioner may suspend such person's
   11  license or driving privilege or, if the charge involves a  violation  of
   12  section  three  hundred eighty-five, section four hundred one or section
   13  five hundred eleven-a of this chapter by a registrant who  was  not  the
   14  operator  of the vehicle, the registration of such vehicle or the privi-
   15  lege of operation of any motor vehicle owned by such registrant  may  be
   16  suspended, until such person shall answer as provided in subdivision two
   17  of  this  section.   If a person shall fail to appear at a hearing, when
   18  such is provided for pursuant to this section, such person's license, or
   19  registration or privilege of operating or of operation, as  appropriate,
   20  may  be  suspended  pending  appearance  at a subsequent hearing, or the
   21  disposition of the charges involved. Any suspension  permitted  by  this
   22  subdivision,  if  already  in effect, may be terminated or if not yet in
   23  effect, may be withdrawn or withheld, prior to the  disposition  of  the
   24  charges  involved  if  such person shall appear and post security in the
   25  amount of forty dollars to  guarantee  his  or  her  appearance  at  any
   26  required hearing. The security posted pursuant to this subdivision shall
   27  be  returned  upon  appearance  at the scheduled hearing or an adjourned
   28  hearing which results in a final disposition of the charge,  and  other-
   29  wise  shall  be  forfeited. If a suspension has been imposed pursuant to
   30  this subdivision and the case is subsequently  transferred  pursuant  to
   31  subdivision  two  of  section  two hundred twenty-five of this [chapter]
   32  article, such suspension shall remain in effect until the person answers
   33  the charges in the court to which the case was transferred. Any  suspen-
   34  sion  issued  pursuant  to  this  paragraph  shall  be  subject  to  the
   35  provisions of paragraph (j-1) of subdivision two of section five hundred
   36  three of this chapter.
   37    § 5. Paragraph a of subdivision 4 of section 227 of  the  vehicle  and
   38  traffic  law,  as amended by chapter 607 of the laws of 1993, is amended
   39  to read as follows:
   40    a. An order entered upon the failure to answer or appear or after  the
   41  receipt  of  an  answer admitting the charge or where a determination is
   42  made that the charge has been established shall be civil in nature,  but
   43  shall  be  treated as a conviction for the purposes of this chapter. The
   44  commissioner or his designee may include in such order an imposition  of
   45  any penalty authorized by any provision of this chapter for a conviction
   46  of such violation, except that no penalty therefore shall include impri-
   47  sonment,  nor,  if  monetary,  exceed the amount of the fine which could
   48  have been imposed had the charge been heard by  a  court.  The  driver's
   49  license or privileges, or, if the charge involves a violation of section
   50  three hundred eighty-five or section four hundred one of this chapter by
   51  a  registrant  who was not the operator of the vehicle, the registration
   52  of such vehicle or privilege of operation of any motor vehicle owned  by
   53  such  registrant  may be suspended pending the payment of any penalty so
   54  imposed.   Any suspension issued pursuant to  this  paragraph  shall  be
   55  subject  to  the  provisions  of  paragraph  (j-1) of subdivision two of
   56  section five hundred three of this chapter.
       S. 1406                            63                            A. 2106
 
    1    § 6. Subdivision 2 of section 503 of the vehicle and  traffic  law  is
    2  amended by adding a new paragraph (j-1) to read as follows:
    3    (j-1)  (i) When a license issued pursuant to this article, or a privi-
    4  lege of operating a motor vehicle or of obtaining such  a  license,  has
    5  been  suspended based upon a failure to answer an appearance ticket or a
    6  summons or failure to pay a fine, penalty or mandatory surcharge, pursu-
    7  ant to subdivision three of section two hundred twenty-six,  subdivision
    8  four  of section two hundred twenty-seven, subdivision four-a of section
    9  five hundred ten or subdivision five-a of section eighteen hundred  nine
   10  of  this  chapter, such suspension shall remain in effect until a termi-
   11  nation of a suspension fee of thirty-five dollars is paid to  the  court
   12  or  tribunal that initiated the suspension of such license or privilege.
   13  In no event may the aggregate of the fees imposed by an individual court
   14  pursuant to this paragraph for the termination of all  suspensions  that
   15  may  be  terminated  as  a  result of a person's answers, appearances or
   16  payments made to such individual court on a single occasion  exceed  two
   17  hundred  dollars.  For  the  purposes  of  this  paragraph,  the various
   18  locations of the administrative tribunal established under article two-A
   19  of this chapter shall be considered a single court.
   20    (ii) Any such fee collected by any court, judge, magistrate  or  other
   21  officer  in subdivision one of section thirty-nine of the judiciary law,
   22  establishing a unified court budget, shall be paid to the state  commis-
   23  sioner of taxation and finance on a monthly basis no later than ten days
   24  after  the  last day of each month. All such monies collected under this
   25  subdivision shall be deposited  to  the  indigent  legal  services  fund
   26  established by section ninety-eight-b of the state finance law.
   27    (iii)  Any such fee collected by any other court, judge, magistrate or
   28  other officer shall, except as provided in paragraph (k) of this  subdi-
   29  vision,  be  paid  to the state comptroller within the first ten days of
   30  the month following collection. Every such payment  to  the  comptroller
   31  shall be accompanied by a statement in such form and detail as the comp-
   32  troller  shall provide. All such monies collected under this subdivision
   33  shall be deposited to the indigent legal services  fund  established  by
   34  section ninety-eight-b of the state finance law.
   35    §  7. Paragraph (k) of subdivision 2 of section 503 of the vehicle and
   36  traffic law, as amended by chapter 309 of the laws of 1996,  is  amended
   37  to read as follows:
   38    (k)  Fees  assessed  for reapplication for a driver's license or rein-
   39  statement of driving privileges after revocation or required to be  paid
   40  for termination of suspension as provided in paragraphs (h), (i) and (j)
   41  of this subdivision shall be paid to the commissioner for deposit to the
   42  general fund. Fees assessed for termination of suspension as provided in
   43  paragraph  (j-1)  of this subdivision and collected by an administrative
   44  tribunal established under article two-A of this chapter shall  be  paid
   45  over  to  the  state  comptroller  to  the  credit of the indigent legal
   46  services fund established by section ninety-eight-b of the state finance
   47  law.
   48    § 8. Subdivision 4-a of section 510 of the vehicle and traffic law  is
   49  REPEALED and a new subdivision 4-a is added to read as follows:
   50    4-a. Suspension for failure to answer an appearance ticket or to pay a
   51  fine.  (a)  Upon  receipt  of  a  court notification of the failure of a
   52  person to appear within sixty days of the return date or new  subsequent
   53  adjourned  date,  pursuant  to an appearance ticket charging said person
   54  with a violation of any of the provisions of this  chapter  (except  one
   55  for  parking, stopping, or standing), of any violation of the tax law or
   56  of the transportation law regulating traffic or of any lawful  ordinance
       S. 1406                            64                            A. 2106
 
    1  or  regulation  made by a local or public authority, relating to traffic
    2  (except one for parking, stopping, or standing) or the failure to pay  a
    3  fine imposed by a court the commissioner or his or her agent may suspend
    4  the  driver's  license  or  privileges of such person pending receipt of
    5  notice from the court that such person has appeared in response to  such
    6  appearance  ticket  or  has  paid  such fine. Such suspension shall take
    7  effect no less than thirty days from the day upon which  notice  thereof
    8  is  sent  by  the  commissioner  to the person whose driver's license or
    9  privileges are to be suspended. Any suspension issued pursuant  to  this
   10  paragraph  shall  be  subject  to  the  provisions of paragraph (j-l) of
   11  subdivision two of section five hundred three of this chapter.
   12    (b) The provisions of paragraph (a)  of  this  subdivision  shall  not
   13  apply  to  a  registrant  who  was  not operating a vehicle, but who was
   14  issued a summons or an appearance ticket  for  a  violation  of  section
   15  three  hundred eighty-five, four hundred one or five hundred eleven-a of
   16  this chapter. Upon the receipt of a court notification of the failure of
   17  such person to appear within sixty days of the  return  date  or  a  new
   18  subsequent  adjourned  date,  pursuant  to an appearance ticket charging
   19  said person with such violation, or the failure of such person to pay  a
   20  fine  imposed  by  a  court,  the  commissioner  or his or her agent may
   21  suspend the registration of the vehicle or  vehicles  involved  in  such
   22  violation  or  privilege  of operation of any motor vehicle owned by the
   23  registrant pending receipt of notice from the court that such person has
   24  appeared in response to such appearance ticket or has  paid  such  fine.
   25  Such  suspension shall take effect no less than thirty days from the day
   26  upon which notice thereof is sent by  the  commissioner  to  the  person
   27  whose  registration  or  privilege  is  to  be suspended. Any suspension
   28  issued pursuant to this paragraph shall be subject to the provisions  of
   29  paragraph (j-1) of subdivision two of section five hundred three of this
   30  chapter.
   31    (c) Upon receipt of notification from a traffic and parking violations
   32  agency  of  the  failure  of a person to appear within sixty days of the
   33  return date or new subsequent adjourned date, pursuant to an  appearance
   34  ticket charging said person with a violation of:
   35    (i)  any  of  the  provisions  of this chapter except one for parking,
   36  stopping or standing and except those violations described in paragraphs
   37  (a), (b), (d), (e) and (f) of subdivision two of section  three  hundred
   38  seventy-one of the general municipal law;
   39    (ii)  section  five hundred two or subdivision (a) of section eighteen
   40  hundred fifteen of the tax law;
   41    (iii) section fourteen-f (except paragraph (b) of subdivision four  of
   42  section  fourteen-f),  two  hundred  eleven or two hundred twelve of the
   43  transportation law; or
   44    (iv) any lawful ordinance or regulation made  by  a  local  or  public
   45  authority  relating  to  traffic  (except  one  for parking, stopping or
   46  standing); or the failure to pay a fine imposed by a traffic and parking
   47  violations agency, the commissioner or his or her agent may suspend  the
   48  driver's  license or privileges of such person pending receipt of notice
   49  from the agency that such  person  has  appeared  in  response  to  such
   50  appearance  ticket  or  has  paid  such fine. Such suspension shall take
   51  effect no less than thirty days from the day upon which  notice  thereof
   52  is  sent  by  the  commissioner  to the person whose driver's license or
   53  privileges are to be suspended. Any suspension issued pursuant  to  this
   54  paragraph  shall  be  subject  to  the  provisions of paragraph (j-1) of
   55  subdivision two of section five hundred three of this chapter.
       S. 1406                            65                            A. 2106
 
    1    § 9. Subdivision 3 of section 514 of the vehicle and traffic  law,  as
    2  amended  by  chapter  496  of  the  laws  of 1990, is amended to read as
    3  follows:
    4    3.  (a) Upon the failure of a person to appear or answer, within sixty
    5  days of the return date or any subsequent adjourned date, or the failure
    6  to pay a fine imposed by a court, pursuant to a summons charging him  or
    7  her  with  a  violation of any of the provisions of this chapter (except
    8  one for parking, stopping or standing), section five hundred two or five
    9  hundred twelve of the tax law, section fourteen-f, two hundred eleven or
   10  two hundred twelve of the transportation law or of any  law,  ordinance,
   11  rule  or  regulation  made  by  a  local  authority, relating to traffic
   12  (except for parking, stopping or standing), the trial court or the clerk
   13  thereof shall within ten days certify that fact to the commissioner,  in
   14  the manner and form prescribed by the commissioner, who shall record the
   15  same  in  his  or  her office. Thereafter and upon the appearance of any
   16  such person in response to such summons or the receipt of  the  fine  by
   17  the  court, the trial court or the clerk thereof shall forthwith certify
   18  that fact to the commissioner, in the manner and form prescribed by  the
   19  commissioner;  provided,  however,  no  such certification shall be made
   20  unless the  court  has  collected  the  termination  of  suspension  fee
   21  required  to  be  paid pursuant to paragraph (j-1) of subdivision two of
   22  section five hundred three of this chapter.
   23    (b) Upon the failure of a person to appear  or  answer,  within  sixty
   24  days of the return date or any subsequent adjourned date, or the failure
   25  to  pay a fine imposed by a traffic and parking violations agency pursu-
   26  ant to a summons charging him or her with a violation of:
   27    (1) any of the provisions of this  chapter  except  one  for  parking,
   28  stopping or standing and except those violations described in paragraphs
   29  (a),  (b),  (d), (e) and (f) of subdivision two of section three hundred
   30  seventy-one of the general municipal law;
   31    (2) section five hundred two or subdivision (a)  of  section  eighteen
   32  hundred fifteen of the tax law;
   33    (3)  section  fourteen-f  (except paragraph (b) of subdivision four of
   34  section fourteen-f), two hundred eleven or two  hundred  twelve  of  the
   35  transportation law; or
   36    (4)  any  lawful  ordinance  or  regulation  made by a local or public
   37  authority relating to traffic  (except  one  for  parking,  stopping  or
   38  standing);
   39  the clerk thereof shall within ten days certify that fact to the commis-
   40  sioner, in the manner and form prescribed by the commissioner, who shall
   41  record the same in his or her office. Thereafter and upon the appearance
   42  of  any  such  person  in response to such summons or the receipt of the
   43  fine by the agency, the traffic and parking  violations  agency  or  the
   44  clerk  thereof shall forthwith certify that fact to the commissioner, in
   45  the manner and form prescribed by the commissioner;  provided,  however,
   46  no  such  certification  shall  be  made  unless the traffic and parking
   47  violations agency  has  collected  the  termination  of  suspension  fee
   48  required  to  be  paid pursuant to paragraph (j-1) of subdivision two of
   49  section five hundred three of this chapter.
   50    § 10. Subdivision 5-a of section 1809 of the vehicle and traffic  law,
   51  as  amended  by  chapter  55  of the laws of 1992, is amended to read as
   52  follows:
   53    5-a. The provisions of paragraph (j-1) of subdivision two  of  section
   54  five  hundred  three,  subdivision  four-a  of section five hundred ten,
   55  subdivision three of section five hundred fourteen and subdivision three
   56  of section two hundred twenty-seven of this  chapter  governing  actions
       S. 1406                            66                            A. 2106
 
    1  which  may be taken for failure to pay a fine or penalty shall be appli-
    2  cable to a mandatory surcharge or crime victim  assistance  fee  imposed
    3  pursuant to this section.
    4    § 11. The state finance law is amended by adding a new section 98-b to
    5  read as follows:
    6    §  98-b.  Indigent legal services fund. 1. There is hereby established
    7  in the joint custody of the comptroller and the commissioner of taxation
    8  and finance a special fund to be known as the  indigent  legal  services
    9  fund.
   10    2.  Such fund shall consist of all moneys appropriated for the purpose
   11  of such fund, all other moneys required to be paid into or  credited  to
   12  such fund, and all moneys received by the fund or donated to it.
   13    3.  Moneys  of  the  indigent  legal services fund shall be available,
   14  subject to appropriation and in accordance with law.
   15    § 12. Notwithstanding the provisions of any other  law:  (a)  the  fee
   16  collected  by  the  office  of court administration for the provision of
   17  criminal history searches and other searches  for  data  kept  electron-
   18  ically by the unified court system shall be fifty dollars for each coun-
   19  ty  searched;  and  (b)  thirty-four  dollars of each such fee collected
   20  shall be deposited in the indigent legal services  fund  established  by
   21  section  98-b  of  the  state finance law, as added by section eleven of
   22  this act, and the remainder shall be deposited in the general  fund  and
   23  subject to transfer in accordance with section 94-b of the state finance
   24  law as amended by section thirteen of this act.
   25    § 13. Subdivision 3 of section 94-b of the state finance law, as added
   26  by chapter 55 of the laws of 1992, is amended to read as follows:
   27    3.  On  or  before  April twentieth in each year commencing with April
   28  twentieth, [nineteen hundred ninety-three] two thousand four, the  chief
   29  administrator shall determine and certify to the comptroller the differ-
   30  ence  between: (a) the aggregate receipts derived by the state from fees
   31  collected by the office of court administration  for  the  provision  of
   32  criminal  history  searches  and  other searches for data kept electron-
   33  ically by the unified court system during the  fiscal  year  ending  the
   34  preceding  March  thirty-first,  less twenty-seven dollars for each such
   35  fee collected, and (b) the aggregate receipts derived by the state  from
   36  fees  collected  by the office of court administration for the provision
   37  of criminal history searches during the  fiscal  year  commencing  April
   38  first,  nineteen hundred ninety-one. The amount of such difference shall
   39  thereupon be transferred by the comptroller from the general fund to the
   40  judiciary data processing offset fund.
   41    § 14. Section 121 of the state finance law is amended by adding a  new
   42  subdivision 3-a to read as follows:
   43    3-a. On or before the twentieth day of October in each year commencing
   44  with the twentieth of October, two thousand three, the comptroller shall
   45  determine  the difference between: (a) the aggregate receipts derived by
   46  the state from  mandatory  surcharges  collected  by  an  administrative
   47  tribunal  or  a  town  or  village justice court pursuant to section one
   48  thousand eight hundred nine of the vehicle and traffic  law  during  the
   49  preceding  year  ending  September  thirtieth,  and  (b)  the  aggregate
   50  receipts derived by the state from such mandatory surcharge collected by
   51  an administrative tribunal or a town  or  a  village  justice  court  in
   52  accordance  with  the  provisions  of section one thousand eight hundred
   53  nine of the vehicle and traffic law in effect immediately prior to April
   54  first, two thousand three during the  preceding  year  ending  September
   55  thirtieth.  Such  difference shall be thereupon transferred by the comp-
       S. 1406                            67                            A. 2106
 
    1  troller to the credit of the indigent legal services fund established by
    2  section ninety-eight-b of this chapter.
    3    §  15. Subdivision 4 of section 468-a of the judiciary law, as amended
    4  by chapter 190 of the laws of 1990, is amended to read as follows:
    5    4. The biennial registration fee shall be three hundred fifty dollars,
    6  sixty dollars of which shall be allocated to and be deposited in a  fund
    7  established  pursuant to the provisions of section ninety-seven-t of the
    8  state finance law, fifty dollars of which  shall  be  allocated  to  and
    9  shall  be  deposited in a fund established pursuant to the provisions of
   10  section ninety-eight-b of the state finance law  and  the  remainder  of
   11  which  shall be deposited in the attorney licensing fund. Such fee shall
   12  be required of every attorney who is admitted and licensed  to  practice
   13  law  in  this state, whether or not the attorney is engaged in the prac-
   14  tice of law in this state or elsewhere, except attorneys who certify  to
   15  the  chief  administrator  of the courts that they have retired from the
   16  practice of law.
   17    § 16.  Paragraph a of subdivision 2 of section 235 of the vehicle  and
   18  traffic  law,  as amended by chapter 526 of the laws of 1991, is amended
   19  to read as follows:
   20    a. Notice. (1) Whenever a city issues a  notice  of  violation  for  a
   21  parking violation, it shall be served in the manner prescribed by subdi-
   22  vision two of section two hundred thirty-eight of this article.
   23    (2)  Whenever  a  person  has  been issued a notice of violation for a
   24  parking violation and has not responded in the manner described  in  the
   25  notice,  a city shall give the owner a second notice of the violation by
   26  regular first class mail: (i) within forty days of issuance of the first
   27  notice of violation for a parking violation where the vehicle is a vehi-
   28  cle registered in this state; or (ii) within forty days of  the  receipt
   29  by  such  city of the name and address of the owner of the vehicle where
   30  the vehicle is a vehicle registered in  any  other  state.  Such  second
   31  notice shall include, but not be limited to, the following information:
   32    (A)  that  the  owner has a period of twenty days from issuance of the
   33  second notice in which to respond to the notice of violation for a park-
   34  ing violation;
   35    (B) that failure to respond to the notice of violation for  a  parking
   36  violation  may  result  in the suspension and non-renewal of the owner's
   37  registration;
   38    (C) that failure to respond to the notice of violation for  a  parking
   39  violation  may  subject the owner to additional penalties as provided in
   40  paragraph b of this subdivision;
   41    (D) that failure to respond to the notice of violation for  a  parking
   42  violation  shall  subject the owner to a default judgment as provided in
   43  paragraph c of this subdivision and  the  additional  penalties  imposed
   44  upon parking violations pursuant to paragraph b of this subdivision; and
   45    (E) that submission of a plea of guilty to the parking violation makes
   46  the owner liable for payment of the stated fine and additional penalties
   47  imposed  pursuant  to  paragraph b of this subdivision and the mandatory
   48  surcharge of [five] fifteen  dollars  imposed  upon  parking  violations
   49  pursuant to section eighteen hundred nine-a of this chapter.
   50    (1)  Upon  written  application  of the chief executive officer of any
   51  such city, the commissioner of the  department  of  motor  vehicles  may
   52  authorize  for  a  specified time period the use of a notice mailer form
   53  that does not contain all the information set forth in this  subdivision
   54  but  which was used by such city on or before the effective date of this
   55  section.
       S. 1406                            68                            A. 2106
 
    1    (2) In addition, the commissioner may suspend  for  a  period  not  to
    2  exceed  one  year from the effective date of this section the provisions
    3  of this subdivision requiring that  a  second  notice  of  violation  be
    4  served  within  forty  days of issuance of the first notice of a parking
    5  violation,  upon  written  application of the chief executive officer of
    6  any such city demonstrating that immediate  imposition  of  such  notice
    7  requirement  will cause substantial financial hardship to such city, and
    8  setting forth the steps to be taken by such city to  achieve  compliance
    9  with  the notice requirements of this subdivision at the end of such one
   10  hundred eighty day period. Upon granting such application,  the  commis-
   11  sioner  shall  specify a period, not to exceed seventy-five days, within
   12  which such second notice must be served, and  shall  adjust  accordingly
   13  the time periods set forth in paragraph b of this subdivision to provide
   14  that  the additional penalties set forth in such subdivision will not be
   15  imposed prior to the stated number of days  from  the  service  of  such
   16  notice.
   17    §  17.  Subdivision  (p)  of section 406 of chapter 166 of the laws of
   18  1991, amending the tax law and other laws relating to taxes, as  amended
   19  by chapter 95 of the laws of 2001, is amended to read as follows:
   20    (p) The amendments to section 1809 of the vehicle and traffic law made
   21  by sections three hundred thirty-seven and three hundred thirty-eight of
   22  this  act  shall not apply to any offense committed prior to such effec-
   23  tive date; provided, further, that section three  hundred  forty-one  of
   24  this act shall take effect immediately and shall expire November 1, 1993
   25  at  which  time  it  shall  be  deemed  repealed; sections three hundred
   26  forty-five and three hundred forty-six of this  act  shall  take  effect
   27  July  1,  1991;  sections three hundred fifty-five, three hundred fifty-
   28  six, three hundred fifty-seven and three hundred fifty-nine of this  act
   29  shall  take  effect immediately and shall expire June 30, 1995 and shall
   30  revert to and be read as if this act had not been enacted; section three
   31  hundred fifty-eight of this act shall take effect immediately and  shall
   32  expire  June 30, 1998 and shall revert to and be read as if this act had
   33  not been enacted; section three hundred sixty-four through three hundred
   34  sixty-seven of this act shall apply to claims filed  on  or  after  such
   35  effective  date; sections three hundred sixty-nine, three hundred seven-
   36  ty-two, three hundred seventy-three, [three hundred seventy-four,] three
   37  hundred seventy-five and three hundred seventy-six  of  this  act  shall
   38  remain  in  effect  until  November 1, 2003, at which time they shall be
   39  deemed repealed; section three hundred seventy-four of  this  act  shall
   40  remain in effect until November 1, 2005 at which time it shall be deemed
   41  repealed;  provided,  however,  that the mandatory surcharge provided in
   42  section three hundred seventy-four of this act shall  apply  to  parking
   43  violations  occurring  on  or  after  said  effective date; and provided
   44  further that the amendments made to section 235 of the vehicle and traf-
   45  fic law by section three hundred seventy-two of this act[,] shall expire
   46  on November 1, 2005 and the amendments made to section 1809 of the vehi-
   47  cle and traffic law by sections three  hundred  thirty-seven  and  three
   48  hundred  thirty-eight  of  this  act  and the amendments made to section
   49  215-a of the labor law by section three hundred seventy-five of this act
   50  shall expire on November 1, 2003 and upon such date  the  provisions  of
   51  such  subdivisions  and  sections  shall revert to and be read as if the
   52  provisions of this act had not been enacted; the amendments to  subdivi-
   53  sions  2 and 3 of section 400.05 of the penal law made by sections three
   54  hundred seventy-seven and three hundred seventy-eight of this act  shall
   55  expire  on July 1, 1992 and upon such date the provisions of such subdi-
   56  visions shall revert and shall be read as if the provisions of this  act
       S. 1406                            69                            A. 2106
 
    1  had  not  been enacted; the state board of law examiners shall take such
    2  action as is necessary to assure that all applicants for examination for
    3  admission to practice as an attorney and counsellor at law shall pay the
    4  increased  examination fee provided for by the amendment made to section
    5  465 of the judiciary law by section three hundred eighty of this act for
    6  any examination given on  or  after  the  effective  date  of  this  act
    7  notwithstanding  that an applicant for such examination may have prepaid
    8  a lesser fee for such examination as required by the provisions of  such
    9  section  465 as of the date prior to the effective date of this act; the
   10  provisions of section 306-a of the civil practice law and rules as added
   11  by section three hundred eighty-one of  this  act  shall  apply  to  all
   12  actions pending on or commenced on or after September 1, 1991, provided,
   13  however,  that  for the purposes of this section service of such summons
   14  made prior to such date shall  be  deemed  to  have  been  completed  on
   15  September  1, 1991; the provisions of section three hundred eighty-three
   16  of this act shall apply to all money deposited in connection with a cash
   17  bail or a partially secured bail bond on or after such  effective  date;
   18  and  the  provisions  of  sections  three  hundred eighty-four and three
   19  hundred eighty-five of  this  act  shall  apply  only  to  jury  service
   20  commenced  during  a  judicial  term beginning on or after the effective
   21  date of this act; provided, however, that nothing contained herein shall
   22  be deemed to affect the application, qualification, expiration or repeal
   23  of any provision of law amended by any section  of  this  act  and  such
   24  provisions  shall  be  applied or qualified or shall expire or be deemed
   25  repealed in the same manner, to the same extent and on the same date  as
   26  the case may be as otherwise provided by law;
   27    §  18. Subdivisions 1 and 2 of section 1809-a of the vehicle and traf-
   28  fic law, subdivision 1 as added by chapter 166 of the laws of  1991  and
   29  subdivision  2 as separately amended by chapters 309 and 690 of the laws
   30  of 1996, are amended to read as follows:
   31    1. The provisions of any other general or special law notwithstanding,
   32  whenever, in a city having a population of one hundred thousand or  more
   33  according   to   the  nineteen  hundred  eighty  United  States  census,
   34  proceedings in an administrative tribunal or a court result in a finding
   35  of liability, or conviction for the violation of any statute, local law,
   36  ordinance or rule involving the parking, stopping or standing of a motor
   37  vehicle, there shall be levied a mandatory surcharge in addition to  any
   38  other  sentence, fine or penalty otherwise permitted or required, in the
   39  amount of [five] fifteen dollars. Such surcharge shall not be  deemed  a
   40  monetary penalty for the purposes of section two hundred thirty-seven of
   41  this chapter or section 19-203 of the administrative code of the city of
   42  New York.
   43    2.  The  mandatory  surcharge  provided for in subdivision one of this
   44  section shall be paid to the clerk of the court or administrative tribu-
   45  nal that made the determination of liability. Within the first ten  days
   46  of  the  month  next  succeeding  the  collection of such surcharge, the
   47  collecting authority shall pay [two] seven dollars and  fifty  cents  of
   48  each  surcharge  to the justice court fund held by the state comptroller
   49  pursuant to section ninety-nine-a of the state finance law which  monies
   50  shall  then  be  deposited  to the credit of the general fund. Each such
   51  payment shall be accompanied by a true and complete report in such  form
   52  and  detail  as the comptroller shall prescribe. The remaining amount of
   53  the surcharge shall be paid to the chief fiscal officer of  the  munici-
   54  pality  and  used  by  the municipality from which it originated for its
   55  local criminal justice programs and purposes.
       S. 1406                            70                            A. 2106
 
    1    § 19. Paragraph (e) of subdivision 2 of section 39  of  the  judiciary
    2  law, as amended by chapter 83 of the laws of 1995, is amended to read as
    3  follows:
    4    (e)  All  fees  collected pursuant to sections eighteen hundred three,
    5  eighteen hundred three-A and nineteen hundred eleven  of  the  New  York
    6  city  civil  court  act, all fees collected pursuant to state law by the
    7  county clerks in the city of New  York,  except  as  otherwise  provided
    8  herein  with  respect  to  fees collected pursuant to subdivision (a) of
    9  section eight thousand eighteen of the civil practice law and rules  and
   10  except those fees collected by the clerk of Richmond county which in the
   11  other  counties of the city of New York are collected by the city regis-
   12  ters, all fees collected pursuant to section eight thousand eighteen  of
   13  the  civil practice law and rules except only to the extent of [one] two
   14  hundred [sixty] five dollars of any fee collected pursuant  to  subdivi-
   15  sion (a) of such section and except for those collected pursuant to [the
   16  third  undesignated]  paragraph  three of such subdivision (a), all fees
   17  collected pursuant to section eight thousand twenty of the  civil  prac-
   18  tice  law  and rules except for those collected pursuant to subdivisions
   19  (f), (g) and (h) of said section, all fees collected pursuant to section
   20  eight thousand twenty-two of the civil practice law and rules, all  fees
   21  collected pursuant to section twenty-four hundred two of the surrogate's
   22  court  procedure  act,  all  fees collected pursuant to section eighteen
   23  hundred three, eighteen hundred three-A and subdivision (a)  of  section
   24  nineteen  hundred  eleven  of  the  uniform district court act, all fees
   25  collected pursuant to section eighteen hundred three,  eighteen  hundred
   26  three-A  and  subdivision  (a) of section nineteen hundred eleven of the
   27  uniform  city  court  act  and  all  fines,  penalties  and  forfeitures
   28  collected  pursuant  to  subdivision  eight  of section eighteen hundred
   29  three of the vehicle and traffic law, except such fines,  penalties  and
   30  forfeitures   collected   by  the  Nassau  county  traffic  and  parking
   31  violations agency, section 71-0211  of  the  environmental  conservation
   32  law,  section  two hundred one of the navigation law and subdivision one
   33  of section 27.13 of the parks, recreation and historic preservation  law
   34  shall  be  paid  to  the state commissioner of taxation and finance on a
   35  monthly basis no later than ten days after the last day of  each  month.
   36  The  additional  fee  of  five dollars collected by county clerks in New
   37  York city pursuant to [the third undesignated] paragraph three of subdi-
   38  vision (a) of section eight thousand eighteen of the civil practice  law
   39  and  rules shall be distributed monthly by the county clerks as follows:
   40  four dollars and seventy-five cents to the commissioner of education for
   41  deposit into the local government records management improvement  funds;
   42  and twenty-five cents to the city of New York.
   43    §  20.    Paragraph  1 of subdivision (a) of section 8018 of the civil
   44  practice law and rules, as amended by section 1 of part B of chapter  83
   45  of the laws of 2002, is amended to read as follows:
   46    1.  A  county clerk is entitled, for the assignment of an index number
   47  to an action pending in a court of which he or she is clerk, to a fee of
   48  [one] two hundred [sixty-five] thirty dollars, payable in advance.
   49    § 21. Subdivision (f) of section 8019 of the civil  practice  law  and
   50  rules,  as  added by chapter 192 of the laws of 1988, is amended to read
   51  as follows:
   52    (f) Copies of records. The following fees, up to a maximum of [thirty]
   53  forty dollars per record shall be payable to a county clerk or  register
   54  for  copies  of the records of the office except records filed under the
   55  uniform commercial code:
       S. 1406                            71                            A. 2106
 
    1    1. to prepare a copy of any paper or  record  on  file  in  [his]  the
    2  office,  except as otherwise provided, [fifty] sixty-five cents per page
    3  with a minimum fee of one dollar thirty cents;
    4    2.  to certify a prepared copy of any record or paper on file, [fifty]
    5  sixty-five cents per page with a minimum  fee  of  [four]  five  dollars
    6  twenty cents;
    7    3.  to  prepare and certify a copy of any record or paper on file, one
    8  dollar twenty-five cents per page with a  minimum  fee  of  [four]  five
    9  dollars; and
   10    4.  to  prepare  and  certify  a  copy  of  a certificate of honorable
   11  discharge, except as provided for in the military law, two dollars fifty
   12  cents.
   13    § 22. Subdivisions (a) and (c) of section 8020 of the  civil  practice
   14  law  and rules, subdivision (a) as amended by chapter 309 of the laws of
   15  1996 and subdivision (c) as amended by chapter 15 of the laws  of  1983,
   16  are amended to read as follows:
   17    (a)  Placing  cause on calendar. For placing a cause on a calendar for
   18  trial or inquest, one hundred twenty-five dollars in the  supreme  court
   19  and  county court; except that where rules of the chief administrator of
   20  the courts require that a request for judicial intervention be  made  in
   21  an  action  pending  in  supreme court or county court, the county clerk
   22  shall be entitled to a fee of [seventy-five] ninety-five dollars,  paya-
   23  ble  before a judge may be assigned pursuant to such request, and there-
   24  after, for placing such a cause on a calendar for trial or inquest,  the
   25  county  clerk  shall  be  entitled to an additional fee of [twenty-five]
   26  thirty dollars, and no other fee may be charged thereafter  pursuant  to
   27  this  subdivision;  except  that the county clerk shall be entitled to a
   28  fee of thirty-five dollars upon  the  filing  of  each  motion  in  such
   29  action.
   30    (c) Filing demand for jury trial. For filing a demand for a jury trial
   31  in  the  following  counties,  where  the  right to a jury trial is duly
   32  demanded:
   33    1. in the counties within the city of  New  York,  [fifty]  sixty-five
   34  dollars in the supreme court;
   35    2.  in  all  other counties, [fifty] sixty-five dollars in the supreme
   36  court and county court.
   37    § 23. Subdivision 3 of section 730 of the real property  tax  law,  as
   38  amended  by  chapter  357  of  the  laws  of 1983, is amended to read as
   39  follows:
   40    3. The petition for review pursuant to this title shall be filed with-
   41  in thirty days after the completion and filing of the  final  assessment
   42  roll  containing  such assessment or, in a city with a population of one
   43  million or more, before the twenty-fifth day of  October  following  the
   44  time  when  the determination sought to be reviewed was made, in accord-
   45  ance with the rules promulgated pursuant to section seven hundred  thir-
   46  ty-seven  of  this title. A fee of [twenty-five] thirty dollars shall be
   47  paid upon filing of each petition, which shall be the sole fee  required
   48  for  petitions  filed  pursuant  to this title. The county clerk of each
   49  county outside the city of New York shall retain five  dollars  of  each
   50  filing  fee  and  shall pay the balance of each fee to the state commis-
   51  sioner of taxation and finance as provided in paragraph (e) of  subdivi-
   52  sion  two  of section thirty-nine of the judiciary law. For the purposes
   53  of this section an assessment  roll  shall  not  be  considered  finally
   54  completed and filed until the last day provided by law for the filing of
   55  such  assessment roll or until notice thereof has been given as required
   56  by law, whichever is later. Failure to file  the  petition  within  such
       S. 1406                            72                            A. 2106
 
    1  time  shall  constitute a complete defense to the petition and the peti-
    2  tion must be dismissed.
    3    §  24. Section 8022 of the civil practice law and rules, as amended by
    4  chapter 309 of the laws of 1996, is amended to read as follows:
    5    § 8022. Fee on civil appeals proceedings before appellate courts.  (a)
    6  A county clerk, upon filing a notice of appeal, is entitled to a fee  of
    7  [fifty] sixty-five dollars, payable in advance.
    8    (b) The clerks of the appellate divisions of the supreme court and the
    9  clerk  of the court of appeals are entitled, upon the filing of a record
   10  on a civil appeal or a statement in lieu of record on a civil appeal, as
   11  required by rule 5530 of this chapter, to a fee of [two]  three  hundred
   12  [fifty]  fifteen  dollars, payable in advance.  The clerks of the appel-
   13  late divisions also shall be entitled to such fee upon the filing  of  a
   14  notice  of petition or order to show cause commencing a special proceed-
   15  ing in their respective courts.  In addition, the clerks of  the  appel-
   16  late  divisions  of  the  supreme  court  and  the clerk of the court of
   17  appeals are entitled, upon the filing of each  motion  with  respect  to
   18  such  appeal  or  special  proceeding,  to a fee of thirty-five dollars,
   19  payable in advance.
   20    § 25. Subdivisions 4, 7, 8, 9, 10, 11, 12, 13, 14 and  15  of  section
   21  2402  of  the surrogate's court procedure act, as amended by chapter 190
   22  of the laws of 1990 and as renumbered by section 33 of part A of chapter
   23  389 of the laws of 1997, are amended to read as follows:
   24    4. Instruments settling  accounts.  For  filing  an  instrument  which
   25  releases  and  discharges a fiduciary but does not contain any statement
   26  of account, no fee shall be charged. For recording any such  instrument,
   27  the  fee  shall  be  [five]  six  dollars per page or part thereof. Upon
   28  filing or recording an instrument pursuant  to  section  2202,  the  fee
   29  shall  be as shown by the following schedule based on the gross value of
   30  assets accounted for including principal and income, and such fee  shall
   31  include  the filing or recording of such instrument. If separate instru-
   32  ments executed by several beneficiaries release and discharge  the  same
   33  fiduciary  or fiduciaries and settle in whole or in the part one and the
   34  same account, only a single fee shall  be  charged  for  the  filing  or
   35  recording of all such instruments.
   36    7.  The  fee  schedule  for  subdivision  1  through 7 inclusive is as
   37  follows:
 
   38       Value of Estate or Subject Matter    Fee Rate
   39       Less than $10,000                  $  [35.00] 45.00
   40        10,000 but under 20,000              [60.00] 75.00
   41        20,000 but under 50,000              [170.00] 215.00
   42        50,000 but under 100,000             [225.00] 280.00
   43       100,000 but under 250,000             [335.00] 420.00
   44       250,000 but under 500,000              [500.00] 625.00
   45       500,000 and over                    [1,000.00] 1,250.00
 
   46    8. (a) For filing a petition to commence  the  following  proceedings,
   47  the fee shall be as indicated:
 
   48  SCPA                                                            Fee Rate
   49  607  To punish respondent for contempt .................. $[25.00] 30.00
   50  711  Suspend, modify, revoke letters or
   51         remove a fiduciary other than a custodian
   52         or guardian ....................................... [60.00] 75.00
       S. 1406                            73                            A. 2106
 
    1  711  Suspend, modify, revoke letters or
    2         remove a custodian or guardian .................... [25.00] 30.00
    3  715  Application of fiduciary to resign .................. [25.00] 30.00
    4  717  Suspend powers-fiduciary in war ..................... [25.00] 30.00
    5  1401 Compel production of will ........................... [15.00] 20.00
    6  1420 Construction of will ................................ [60.00] 75.00
    7  1421 Determination of right of election .................. [60.00] 75.00
    8  1502 Appointment of trustee .............................. [35.00] 45.00
    9  1508 Release against state ............................... [40.00] 50.00
   10  1703 Appointment of guardian ............................. [15.00] 20.00
   11  2003 Open safe deposit box ............................... [15.00] 20.00
   12  2102 Proceedings against a fiduciary ..................... [15.00] 20.00
   13  2103  Proceedings by fiduciary
   14         to discover property .............................. [60.00] 75.00
   15  2107 Advice and directions ............................... [60.00] 75.00
   16  2108 Continue business ................................... [35.00] 45.00
   17  2114 Review corporate trustee compensation ................ [7.00] 10.00
   18  2205 Petition to compel fiduciary to account ............. [25.00] 30.00
 
   19  EPTL
   20  7-4.6 Appointment of successor custodian ................. [15.00] 20.00
 
   21    (b) For filing a petition to commence a proceeding for the appointment
   22  of  a  trustee of a lifetime trust or for the appointment of a conserva-
   23  tor, the fee shall be the same as that which is payable in  the  supreme
   24  court  pursuant to section eight thousand eighteen of the civil practice
   25  law and rules.
 
   26    9. For filing:
   27                                                                  Fee Rate
   28  (i)   a demand for trial  by  jury  in
   29          any proceeding, SCPA 502
   30           $[120.00] 150.00
   31  (ii)  objections  to  the probate of a
   32          will SCPA 1410
   33           [120.00] 150.00
   34  (iii) a note of issue in any proceeding
   35           [35.00] 45.00
   36  (iv)  objection  or  answer   in   any
   37          action   or  proceeding  other
   38          than probate
   39           [60.00] 75.00
   40  (v)   a will for safekeeping  pursuant
   41          to  section  2507  of this act
   42          except that the court  in  any
   43          county  may reduce or dispense
   44          with such fee
   45           [35.00] 45.00
   46  (vi)  a bond, including any additional
   47          bond:  less than $10,000
   48           [15.00] 20.00
   49    $10,000 and over......................................   [25.00] 30.00
   50    10. For furnishing a transcript of a decree ........... $[15.00] 20.00
   51    11. For a certificate of letters evidencing that the appointment of  a
   52  fiduciary is still in full force and effect ............... $[5.00] 6.00
       S. 1406                            74                            A. 2106
 
    1    12.  (a)  For making and certifying or comparing and certifying a copy
    2  of a will or any paper on file or recorded in his office:
    3  ...................................................... $[5.00] 6.00  pg.
    4    (b) Authenticating the same, additional: .............. $[15.00] 20.00
    5    13.  For  searching  and  certifying to any record for which search is
    6  made:
    7                                         $[25.00] 30.00 for under 25 years
    8                                         $[70.00] 90.00 for over  25 years
 
    9    14. (a) For producing papers, documents, books of record  on  file  in
   10  his  office  under  a  subpoena  duces  tecum, for use within the county
   11  where  the office  of  the court is situated:             $[25.00] 30.00
   12    (b) For use in any other county, such fee to be paid for each  day  or
   13  part thereof that the messenger is detailed from the office and to be in
   14  addition to mileage fee and the necessary expenses of the messenger. The
   15  clerk  of  the  court  shall  not  be required to make any collection or
   16  return of the money so paid for expenses:                     $[.25] .30
   17    15. For recording:
   18    (a) any instrument, decree  or other paper which is required by law to
   19  be recorded:                                        $[6.00] 8.00 per pg.
   20                                            or part $[12.00] 16.00 minimum
   21    (b) for filing an authenticated copy of a foreign will:
   22                                                      $[6.00] 8.00 per pg.
   23                                                    $[48.00] 64.00 minimum
   24    (c) for taxing bill of costs:                           $[10.00] 15.00
   25    § 26. Subdivisions (a) and (c) of section 1803 of the uniform district
   26  court act, subdivision (a) as amended by chapter 309 of the laws of 1996
   27  and subdivision (c) as added by chapter 90 of  the  laws  of  1996,  are
   28  amended to read as follows:
   29    (a)  Small  claims shall be commenced upon the payment by the claimant
   30  of a filing fee of [ten] fifteen dollars for claims in the amount of one
   31  thousand dollars or less and [fifteen] twenty dollars for claims in  the
   32  amount  of  more  than  one  thousand  dollars, without the service of a
   33  summons and, except by special order of the court, without  the  service
   34  of  any  pleading  other  than a statement of his cause of action by the
   35  claimant or someone in his behalf to the clerk,  who  shall  reduce  the
   36  same to a concise, written form and record it in a docket kept especial-
   37  ly  for  such purpose.   Such procedure shall provide for the sending of
   38  notice of such claim by ordinary first class  mail  and  certified  mail
   39  with  return  receipt  requested  to the party complained against at his
   40  residence, if he resides within a district of the court in  the  county,
   41  and his residence is known to the claimant, or at his office or place of
   42  regular  employment within such a district if he does not reside therein
   43  or his residence within such a district is not known  to  the  claimant.
   44  If,  after  the expiration of twenty-one days, such ordinary first class
   45  mailing has not been returned as  undeliverable,  the  party  complained
   46  against  shall  be presumed to have received notice of such claim.  Such
   47  notice shall include a clear description of the procedure for  filing  a
   48  counterclaim, pursuant to subdivision (c) of this section.
   49    Such  procedure  shall  further  provide for an early hearing upon and
   50  determination of such claim.  No filing fee, however, shall be  demanded
   51  or  received  on  small claims of employees who shall comply with § 1912
   52  (a) of this act which is hereby made applicable, except  that  necessary
   53  mailing costs shall be paid.
   54    (c)  A  defendant  who  wishes  to  file a counterclaim shall do so by
   55  filing with the clerk a statement containing  such  counterclaim  within
       S. 1406                            75                            A. 2106
 
    1  five  days  of receiving the notice of claim. At the time of such filing
    2  the defendant shall pay to the  clerk  a  filing  fee  of  [three]  five
    3  dollars  plus  the  cost of mailings which are required pursuant to this
    4  subdivision.  The  clerk shall forthwith send notice of the counterclaim
    5  by ordinary first class mail to the claimant. If the defendant fails  to
    6  file the counterclaim in accordance with the provisions of this subdivi-
    7  sion,  the defendant retains the right to file the counterclaim, however
    8  the claimant may, but shall not  be  required  to,  request  and  obtain
    9  adjournment  of  the  hearing to a later date. The claimant may reply to
   10  the counterclaim but shall not be required to do so.
   11    § 27. Subdivisions (a), (b) and (d) of section 1803-A of  the  uniform
   12  district court act, subdivision (a) as amended by chapter 90 of the laws
   13  of  1996, subdivision (b) as amended by chapter 847 of the laws of 1990,
   14  the third undesignated paragraph of subdivision (b) as amended by  chap-
   15  ter  347 of the laws of 1995, and subdivision (d) as added by chapter 90
   16  of the laws of 1996, are amended to read as follows:
   17    (a) Commercial claims other than claims arising out of consumer trans-
   18  actions shall be commenced upon the payment by the claimant of a  filing
   19  fee  of  [twenty] twenty-five dollars and the cost of mailings as herein
   20  provided, without the service of a summons and, except by special  order
   21  of  the court, without the service of any pleading other than a required
   22  certification verified as to its truthfulness by the claimant on a  form
   23  prescribed  by  the  state office of court administration and filed with
   24  the clerk, that no more than five such actions or proceedings (including
   25  the instant action or  proceeding)  have  been  instituted  during  that
   26  calendar  month,  and a statement of its cause of action by the claimant
   27  or someone in its behalf to the clerk, who shall reduce the  same  to  a
   28  concise,  written form and record it in a filing system maintained espe-
   29  cially for such purpose. Such procedure shall provide that  the  commer-
   30  cial claims part of the court shall have no jurisdiction over, and shall
   31  dismiss,  any  case  with respect to which the required certification is
   32  not made upon the attempted institution of  the  action  or  proceeding.
   33  Such  procedure shall provide for the sending of notice of such claim by
   34  ordinary first  class  mail  and  certified  mail  with  return  receipt
   35  requested  to  the  party  complained  against  at  his residence, if he
   36  resides within the municipality in which the court is located,  and  his
   37  residence is known to the claimant, or at his office or place of regular
   38  employment  within  such  municipality if he does not reside within such
   39  municipality or his residence within the municipality is  not  known  to
   40  the claimant. If, after the expiration of twenty-one days, such ordinary
   41  first  class  mailing  has not been returned as undeliverable, the party
   42  complained against shall be presumed to have  received  notice  of  such
   43  claim.  Such  notice  shall include a clear description of the procedure
   44  for filing a counterclaim, pursuant to subdivision (d) of this section.
   45    Such procedure shall further provide for an  early  hearing  upon  and
   46  determination  of such claim. The hearing shall be scheduled in a manner
   47  which, to the extent possible, minimizes the time the  party  complained
   48  against must be absent from employment.
   49    Either  party may request that the hearing be scheduled during evening
   50  hours, provided that the hearing shall not be scheduled  during  evening
   51  hours if it would cause unreasonable hardship to either party. The court
   52  shall  not  unreasonably  deny  requests  for  evening  hearings if such
   53  requests are made by the claimant upon commencement of the action or  by
   54  the  party  complained  against  within  fourteen days of receipt of the
   55  notice of claim.
       S. 1406                            76                            A. 2106
 
    1    (b) Commercial claims in actions arising out of consumer  transactions
    2  shall  be  commenced upon the payment by the claimant of a filing fee of
    3  [twenty]  twenty-five  dollars  and  the  cost  of  mailings  as  herein
    4  provided,  without the service of a summons and, except by special order
    5  of  the court, without the service of any pleading other than a required
    6  statement of the cause of action by  the  claimant  or  someone  on  its
    7  behalf to the clerk, who shall reduce the same to a concise written form
    8  including  the  information required by subdivision (c) of this section,
    9  denominate it conspicuously as a consumer transaction, and record it  in
   10  the  docket  marked  as  a  consumer transaction, and by filing with the
   11  clerk a required certificate verified as  to  its  truthfulness  by  the
   12  claimant  on  forms  prescribed  by  the  state office of court adminis-
   13  tration.  Such verified certificate shall certify (i) that the  claimant
   14  has  mailed by ordinary first class mail to the party complained against
   15  a demand letter, no less than ten days and  no  more  than  one  hundred
   16  eighty days prior to the commencement of the claim, and (ii) that, based
   17  upon  information  and belief, the claimant has not instituted more than
   18  five actions or proceedings (including the instant action or proceeding)
   19  during the calendar month.
   20    A form for the demand letter shall be prescribed and furnished by  the
   21  state  office  of  court  administration and shall require the following
   22  information: the date of  the  consumer  transaction;  the  amount  that
   23  remains unpaid; a copy of the original debt instrument or other document
   24  underlying  the  debt  and  an  accounting  of all payments, and, if the
   25  claimant was not a party to the  original  transaction,  the  names  and
   26  addresses  of  the  parties to the original transaction; and a statement
   27  that the claimant intends to use this part of  the  court  to  obtain  a
   28  judgment,  that  further  notice  of a hearing date will be sent, unless
   29  payment is received by a specified date, and that the  party  complained
   30  against  will  be  entitled  to  appear  at said hearing and present any
   31  defenses to the claim.
   32    In the event that the verified certificate is not  properly  completed
   33  by  the  claimant, the court shall not allow the action to proceed until
   34  the verified certificate is corrected. Notice of  such  claim  shall  be
   35  sent  by  the clerk by both ordinary first class mail and certified mail
   36  with return receipt requested to the party  complained  against  at  his
   37  residence,  if  he resides within the municipality in which the court is
   38  located, and his residence is known to the claimant, or at his office or
   39  place of regular employment within such  municipality  if  he  does  not
   40  reside  therein or his residence is not known to the claimant. If, after
   41  the expiration of thirty days, such ordinary first class mailing has not
   42  been returned as undeliverable, the party complained  against  shall  be
   43  presumed to have received notice of such claim.
   44    Such  procedure  shall  further  provide for an early hearing upon and
   45  determination of such claim. The hearing shall be scheduled in a  manner
   46  which,  to  the extent possible, minimizes the time the party complained
   47  against must be absent from employment. Either party  may  request  that
   48  the hearing be scheduled during evening hours, provided that the hearing
   49  shall  not be scheduled during evening hours if it would cause unreason-
   50  able hardship to either party. The court  shall  not  unreasonably  deny
   51  requests  for evening hearings if such requests are made by the claimant
   52  upon commencement of the action or by the party complained against with-
   53  in fourteen days of receipt of the notice of claim.
   54    (d) A defendant who wishes to file  a  counterclaim  shall  do  so  by
   55  filing  with  the  clerk a statement containing such counterclaim within
   56  five days of receiving the notice of claim. At the time of  such  filing
       S. 1406                            77                            A. 2106
 
    1  the  defendant  shall  pay  to  the  clerk  a filing fee of [three] five
    2  dollars plus the cost of mailings which are required  pursuant  to  this
    3  subdivision.  The  clerk shall forthwith send notice of the counterclaim
    4  by  ordinary first class mail to the claimant. If the defendant fails to
    5  file the counterclaim in accordance with the provisions of this subdivi-
    6  sion, the defendant retains the right to file the counterclaim,  however
    7  the  claimant  may,  but  shall  not  be required to, request and obtain
    8  adjournment of the hearing to a later date. The claimant  may  reply  to
    9  the counterclaim but shall not be required to do so.
   10    §  28.  Subdivision  (a) of section 1911 of the uniform district court
   11  act, as amended by chapter 190 of the laws of 1990, is amended  to  read
   12  as follows:
   13    (a)  There shall be paid to the clerk the following sums as court fees
   14  in civil matters and there shall be no others:
   15    (1) Upon the issuance of a summons, order  of  arrest  or  attachment,
   16  requisition  or  warrant of seizure, or a notice of petition or order to
   17  show cause in lieu thereof in a summary proceeding to recover real prop-
   18  erty, [thirty-five] forty-five dollars.
   19    (2) Upon filing the first paper in an action or proceeding,  including
   20  a  special  proceeding  for  the  settlement  of a claim of an infant or
   21  incompetent, [thirty-five] forty-five dollars,  unless  there  has  been
   22  paid  a  fee  of  [thirty-five] forty-five dollars for the issuance of a
   23  summons, order of  arrest  or  attachment,  requisition  or  warrant  of
   24  seizure,  or a notice of petition or order to show cause in lieu thereof
   25  in a summary proceeding, as provided for by subparagraph (1) hereof.
   26    (3) For entry of judgment upon  confession,  [thirty-five]  forty-five
   27  dollars,  unless  there  has been paid a fee of [thirty-five] forty-five
   28  dollars in accordance with the provisions of subparagraphs (1)  and  (2)
   29  hereof.
   30    (4) On filing notice of appeal, [twenty-five] thirty dollars.
   31    (5) For issuing a satisfaction of judgment, or a certificate regarding
   32  the judgment, [five] six dollars.
   33    (6)  Upon demand for a trial by jury, [fifty-five] seventy dollars; to
   34  be paid by the party demanding the jury, at the time of the demand.
   35    (7) For exemplification of a copy of a paper on file  in  the  clerk's
   36  office [ten] fifteen dollars.
   37    (8)  For  certifying  a copy of a paper on file in the clerk's office,
   38  [five] six dollars.
   39    (9) For filing a notice of trial, [thirty]  forty  dollars.  All  fees
   40  shall be prepaid before the service shall be performed.
   41    §  29.  Subdivisions  (a) and (c) of section 1803 of the New York city
   42  civil court act, subdivision (a) as amended by chapter 309 of  the  laws
   43  of  1996 and subdivision (c) as added by chapter 90 of the laws of 1996,
   44  are amended to read as follows:
   45    (a) Small claims shall be commenced upon the payment by  the  claimant
   46  of a filing fee of [ten] fifteen dollars for claims in the amount of one
   47  thousand  dollars or less and [fifteen] twenty dollars for claims in the
   48  amount of more than one thousand  dollars,  without  the  service  of  a
   49  summons  and,  except by special order of the court, without the service
   50  of any pleading other than a statement of his cause  of  action  by  the
   51  claimant  or  someone  in  his behalf to the clerk, who shall reduce the
   52  same to a concise, written form and record it in a docket kept especial-
   53  ly for such purpose. Such procedure shall provide  for  the  sending  of
   54  notice  of  such  claim  by ordinary first class mail and certified mail
   55  with return receipt requested to the party  complained  against  at  his
   56  residence,  if he resides within the city of New York, and his residence
       S. 1406                            78                            A. 2106
 
    1  is known to the claimant, or at his office or place of  regular  employ-
    2  ment  within  the  city of New York if he does not reside therein or his
    3  residence within the city of New York is not known to the claimant.  If,
    4  after the expiration of twenty-one days, such ordinary first class mail-
    5  ing has not been returned as undeliverable, the party complained against
    6  shall  be  presumed  to have received notice of such claim.  Such notice
    7  shall include a clear description of the procedure for filing a counter-
    8  claim, pursuant to subdivision (c) of this section.
    9    Such procedure shall further provide for an  early  hearing  upon  and
   10  determination  of  such claim. No filing fee, however, shall be demanded
   11  or received on small claims of employees who shall comply with   §  1912
   12  (a)  of  this act which is hereby made applicable, except that necessary
   13  mailing costs shall be paid.
   14    (c) A defendant who wishes to file  a  counterclaim  shall  do  so  by
   15  filing  with  the  clerk a statement containing such counterclaim within
   16  five days of receiving the notice of claim. At the time of  such  filing
   17  the  defendant  shall  pay  to  the  clerk  a filing fee of [three] five
   18  dollars plus the cost of mailings which are required  pursuant  to  this
   19  subdivision.  The  clerk shall forthwith send notice of the counterclaim
   20  by ordinary first class mail to the claimant. If the defendant fails  to
   21  file the counterclaim in accordance with the provisions of this subdivi-
   22  sion,  the defendant retains the right to file the counterclaim, however
   23  the claimant may, but shall not  be  required  to,  request  and  obtain
   24  adjournment  of  the  hearing to a later date. The claimant may reply to
   25  the counterclaim but shall not be required to do so.
   26    § 30. Subdivisions (a), (b) and (d) of section 1803-A of the New  York
   27  city  civil  court  act, subdivision (a) as amended by chapter 90 of the
   28  laws of 1996, subdivision (b) as amended by chapter 847 of the  laws  of
   29  1990,  the third undesignated paragraph of subdivision (b) as amended by
   30  chapter 347 of the laws of 1995, and subdivision (d) as added by chapter
   31  90 of the laws of 1996, are amended to read as follows:
   32    (a) Commercial claims other than claims arising out of consumer trans-
   33  actions shall be commenced upon the payment by the claimant of a  filing
   34  fee  of  [twenty] twenty-five dollars and the cost of mailings as herein
   35  provided, without the service of a summons and, except by special  order
   36  of  the court, without the service of any pleading other than a required
   37  certification verified as to its truthfulness by the claimant on a  form
   38  prescribed  by  the  state office of court administration and filed with
   39  the clerk, that no more than five such actions or proceedings (including
   40  the instant action or  proceeding)  have  been  instituted  during  that
   41  calendar  month,  and a required statement of its cause of action by the
   42  claimant or someone in its behalf to the clerk,  who  shall  reduce  the
   43  same to a concise, written form and record it in a docket kept especial-
   44  ly  for  such purpose.  Such procedure shall provide that the commercial
   45  claims part of the court shall have  no  jurisdiction  over,  and  shall
   46  dismiss,  any  case  with respect to which the required certification is
   47  not made upon the attempted institution of  the  action  or  proceeding.
   48  Such  procedure shall provide for the sending of notice of such claim by
   49  ordinary first  class  mail  and  certified  mail  with  return  receipt
   50  requested  to  the  party  complained  against  at  his residence, if he
   51  resides within the city of New York, and his residence is known  to  the
   52  claimant,  or  at  his  office or place of regular employment within the
   53  city of New York if he does not reside therein or his  residence  within
   54  the city of New York is not known to the claimant. If, after the expira-
   55  tion  of twenty-one days, such ordinary first class mailing has not been
   56  returned  as  undeliverable,  the  party  complained  against  shall  be
       S. 1406                            79                            A. 2106
 
    1  presumed  to  have  received  notice  of  such  claim. Such notice shall
    2  include a clear description of the procedure for filing a  counterclaim,
    3  pursuant to subdivision (d) of this section.
    4    Such  procedure  shall  further  provide for an early hearing upon and
    5  determination of such claim. The hearing shall be scheduled in a  manner
    6  which,  to  the extent possible, minimizes the time the party complained
    7  against must be absent from employment.
    8    Either party may request that the hearing be scheduled during  evening
    9  hours,  provided  that the hearing shall not be scheduled during evening
   10  hours if it would cause unreasonable hardship to either party. The court
   11  shall not unreasonably  deny  requests  for  evening  hearings  if  such
   12  requests  are made by the claimant upon commencement of the action or by
   13  the party complained against within fourteen  days  of  receipt  of  the
   14  notice of claim.
   15    (b)  Commercial claims in actions arising out of consumer transactions
   16  shall be commenced upon the payment by the claimant of a filing  fee  of
   17  [twenty]  twenty-five  dollars  and  the  cost  of  mailings  as  herein
   18  provided, without the service of a summons and, except by special  order
   19  of  the court, without the service of any pleading other than a required
   20  statement of the cause of action by  the  claimant  or  someone  on  its
   21  behalf of the clerk, who shall reduce the same to a concise written form
   22  including  the  information required by subdivision (c) of this section,
   23  denominate it conspicuously as a consumer transaction, and record it  in
   24  the  docket  marked  as  a  consumer transaction, and by filing with the
   25  clerk a required certificate verified as  to  its  truthfulness  by  the
   26  claimant  on  forms  prescribed  by  the  state office of court adminis-
   27  tration.
   28    Such verified certificate shall certify  (i)  that  the  claimant  has
   29  mailed  by  ordinary  first class mail to the party complained against a
   30  demand letter, no less than ten days and no more than one hundred eighty
   31  days prior to the commencement of the claim, and (ii) that,  based  upon
   32  information  and  belief, the claimant has not instituted more than five
   33  actions or proceedings (including  the  instant  action  or  proceeding)
   34  during the calendar month.
   35    A  form for the demand letter shall be prescribed and furnished by the
   36  state office of court administration and  shall  require  the  following
   37  information:  the  date  of  the  consumer  transaction; the amount that
   38  remains unpaid; a copy of the original debt instrument or other document
   39  underlying the debt and an accounting  of  all  payments,  and,  if  the
   40  claimant  was  not  a  party  to the original transaction, the names and
   41  addresses of the parties to the original transaction;  and  a  statement
   42  that  the  claimant  intends  to  use this part of the court to obtain a
   43  judgment, that further notice of a hearing date  will  be  sent,  unless
   44  payment  is  received by a specified date, and that the party complained
   45  against will be entitled to appear  at  said  hearing  and  present  any
   46  defenses to the claim.
   47    In  the  event that the verified certificate is not properly completed
   48  by the claimant, the court shall not allow the action to  proceed  until
   49  the  verified  certificate  is  corrected. Notice of such claim shall be
   50  sent by the clerk by both ordinary first class mail and  certified  mail
   51  with  return  receipt  requested  to the party complained against at his
   52  residence, if he resides within the city of New York, and his  residence
   53  is  known  to the claimant, or at his office or place of regular employ-
   54  ment within the city of New York if he does not reside  therein  or  his
   55  residence within the city of New York is not known to the claimant.  If,
   56  after  the  expiration of thirty days, such ordinary first class mailing
       S. 1406                            80                            A. 2106
 
    1  has not been returned as undeliverable,  the  party  complained  against
    2  shall be presumed to have received notice of such claim.
    3    Such  procedure  shall  further  provide for an early hearing upon and
    4  determination of such claim. The hearing shall be scheduled in a  manner
    5  which,  to  the extent possible, minimizes the time the party complained
    6  against must be absent from employment. Either party  may  request  that
    7  the hearing be scheduled during evening hours, provided that the hearing
    8  shall  not be scheduled during evening hours if it would cause unreason-
    9  able hardship to either party. The court  shall  not  unreasonably  deny
   10  requests  for evening hearings if such requests are made by the claimant
   11  upon commencement of the action or by the party complained against with-
   12  in fourteen days of receipt of the notice of claim.
   13    (d) A defendant who wishes to file  a  counterclaim  shall  do  so  by
   14  filing  with  the  clerk a statement containing such counterclaim within
   15  five days of receiving the notice of claim. At the time of  such  filing
   16  the  defendant  shall  pay  to  the  clerk  a filing fee of [three] five
   17  dollars plus the cost of mailings which are required  pursuant  to  this
   18  subdivision.  The  clerk shall forthwith send notice of the counterclaim
   19  by ordinary first class mail to the claimant. If the defendant fails  to
   20  file the counterclaim in accordance with the provisions of this subdivi-
   21  sion,  the defendant retains the right to file the counterclaim, however
   22  the claimant may, but shall not  be  required  to,  request  and  obtain
   23  adjournment  of  the  hearing to a later date. The claimant may reply to
   24  the counterclaim but shall not be required to do so.
   25    § 31. Section 1911 of the New York city civil court act, as amended by
   26  chapter 190 of the laws of 1990, is amended to read as follows:
   27    § 1911. Fees payable to the clerk.  There shall be paid to  the  clerk
   28  the following sums as court fees in an action:
   29    (a)  Upon  issuance  of  a  summons, order of arrest or attachment, or
   30  requisition or warrant of seizure by the  clerk,  together  with  copies
   31  thereof, [thirty-five] forty-five dollars.
   32    (b)  Upon filing summons with proof of service thereof, or upon filing
   33  of the first paper in that county in any action or proceeding,  [thirty-
   34  five]  forty-five  dollars,  unless there has been paid in that county a
   35  fee of [thirty-five] forty-five  dollars  pursuant  to  subdivision  (a)
   36  hereof.
   37    (c)  Upon  filing  an infant's compromise, where no summons was filed,
   38  [thirty] forty dollars.
   39    (d) On filing a notice of trial, [thirty] forty dollars.
   40    (e) For entry of judgment upon  confession,  [thirty-five]  forty-five
   41  dollars, unless there has been paid a fee pursuant to subdivision (a) or
   42  subdivision (b) hereof.
   43    (f) On filing notice of appeal, [twenty-five] thirty dollars.
   44    (g) For issuing a satisfaction of judgment, or a certificate regarding
   45  the judgment, [five] six dollars.
   46    (h)  Upon demand for a trial by jury, [fifty-five] seventy dollars; to
   47  be paid by the party demanding the jury, at the time of demand.
   48    (i) For exemplification of any paper filed, [ten] fifteen dollars.
   49    (j) For certifying a copy of a paper on file in  the  clerk's  office,
   50  [five] six dollars.
   51    (k)  For  issuing  a  notice of petition, or an order to show cause in
   52  lieu thereof, in a summary proceeding  to  recover  possession  of  real
   53  property, [thirty-five] forty-five dollars.
   54    (l)  For  issuing  a  petition  for change of name, [fifty] sixty-five
   55  dollars.
       S. 1406                            81                            A. 2106
 
    1    (m) For any other matter, not provided  for  above,  for  which  there
    2  would  be a fee payable in the supreme court of a county within the city
    3  of New York, the same fee.
    4    All fees shall be prepaid before the service shall be performed.
    5    §  32.  The vehicle and traffic law is amended by adding a new section
    6  1809-c to read as follows:
    7    § 1809-c. Additional surcharge required for certain violations  relat-
    8  ing  to  driving  while  intoxicated  and  driving  while impaired.   1.
    9  Notwithstanding any other provision of law, whenever  proceedings  in  a
   10  court  of  this  state result in a conviction pursuant to section eleven
   11  hundred ninety-two of this chapter, there shall be levied,  in  addition
   12  to  any  sentence  or  other  surcharge required or permitted by law, an
   13  additional surcharge of twenty-five dollars.
   14    2. The additional surcharge provided for in subdivision  one  of  this
   15  section  shall  be  paid  to  the  clerk  of the court that rendered the
   16  conviction. Within the first ten days of the month following  collection
   17  of  the surcharge the collecting authority shall determine the amount of
   18  surcharge collected and it shall pay such money to the state comptroller
   19  who shall deposit such money in the state treasury pursuant  to  section
   20  one  hundred  twenty-one  of  the state finance law to the credit of the
   21  general fund.
   22    3. The provisions of subdivision three of section two hundred  twenty-
   23  seven,  subdivision  four-a of section five hundred ten, and subdivision
   24  three of section five hundred fourteen of this chapter governing actions
   25  which may be taken for failure to pay a fine or penalty shall be  appli-
   26  cable to the additional surcharge imposed pursuant to this section.
   27    §  33.  This  act  shall  take effect on the one hundred eightieth day
   28  after it shall have become a law; provided, however that:
   29    a. sections one, two and three of this act shall take  effect  January
   30  1,  2004,  and  shall  apply to representation provided on or after such
   31  date; and
   32    b. a county or city in which a county  is  wholly  contained  may,  by
   33  local  law, elect to have the provisions of section one, two or three of
   34  this act take effect prior to such date.
   35    c. the amendments to paragraph a of subdivision 2 of  section  235  of
   36  the  vehicle  and  traffic law made by section sixteen of this act shall
   37  not affect the expiration of such section and shall  be  deemed  expired
   38  therewith.
 
   39                                   PART O
 
   40    Section 1. Section 200 of the civil service law, as amended by chapter
   41  24 of the laws of 1969, is amended to read as follows:
   42    § 200. Statement  of  policy. The legislature of the state of New York
   43  declares that it is the public policy of the state and  the  purpose  of
   44  this  [act]  article to promote harmonious and cooperative relationships
   45  between government and its employees and to protect the public by assur-
   46  ing, at all times, the orderly and uninterrupted  operations  and  func-
   47  tions  of government.  These policies are best effectuated by (a) grant-
   48  ing to public employees the right of  organization  and  representation,
   49  (b)  requiring the state, local governments and other political subdivi-
   50  sions to negotiate with, and enter into written agreements with employee
   51  organizations representing public employees which have been certified or
   52  recognized, (c) encouraging such  public  employers  and  such  employee
   53  organizations  to  agree  upon  procedures  for  resolving disputes, (d)
   54  creating a public and private employment relations board  to  assist  in
       S. 1406                            82                            A. 2106
 
    1  resolving  disputes  between  public  employees  and public employers as
    2  prescribed in this article, and between  private  sector  employees  and
    3  employers as prescribed in article twenty of the labor law, (e) continu-
    4  ing  the  prohibition  against strikes by public employees and providing
    5  remedies for violations of such prohibition, and  (f)  coordinating  the
    6  provision of public and private sector labor dispute resolution services
    7  as  provided in the civil service law and labor law by consolidating the
    8  provision of such services in a single board.
    9    § 2. Subdivision 1 of section 201 of the civil service law,  as  added
   10  by chapter 392 of the laws of 1967, is amended to read as follows:
   11    1.  The term "board" means the public and private employment relations
   12  board created by section two hundred five of this article.
   13    § 3. The section heading, subdivisions 1, 2, 3, 4, 6 and  the  opening
   14  paragraph  of subdivision 5 of section 205 of the civil service law, the
   15  section heading, subdivision 2, the opening paragraph of subdivision  5,
   16  and  subdivision 6 as added by chapter 392 of the laws of 1967, subdivi-
   17  sion 1 as amended by chapter 391 of the laws of 1969, subdivision  3  as
   18  amended  by chapter 307 of the laws of 1979, subdivision 4 as amended by
   19  chapter 503 of the laws of  1971,  are  amended  and  subdivision  5  is
   20  amended by adding a new paragraph (m) to read as follows:
   21    Public  and  private  employment  relations  board. 1. There is hereby
   22  created in the state department of civil service a board, formerly known
   23  as the public employment relations board, to be hereafter known  as  the
   24  public  and  private  employment relations board, which shall consist of
   25  three members appointed by the governor, by  and  with  the  advice  and
   26  consent  of  the  senate  from persons representative of the public. Not
   27  more than two members of the board shall be members of  the  same  poli-
   28  tical  party.  No member of the board shall accept employment as a labor
   29  or management advocate. Each member shall be appointed for a term of six
   30  years[, except that  of  the  members  first  appointed,  one  shall  be
   31  appointed  for  a  term  to expire on May thirty-first, nineteen hundred
   32  sixty-nine, one for a term  to  expire  on  May  thirty-first,  nineteen
   33  hundred  seventy-one,  and one for a term to expire on May thirty-first,
   34  nineteen hundred seventy-three]. The governor shall designate one member
   35  who shall serve as [chairman] chairperson of the board until the expira-
   36  tion of his or her term. A member appointed to fill a vacancy  shall  be
   37  appointed  for  the  unexpired  term  of the member whom he or she is to
   38  succeed.   The members of the  public  employment  relations  board,  in
   39  office  on the effective date of the chapter of the laws of two thousand
   40  three that added this sentence, shall continue to serve  as  members  of
   41  the  public  and private employment relations board until the expiration
   42  of their respective terms of office.
   43    2. Members of the board shall hold no other public  office  or  public
   44  employment  in  the  state. The [chairman] chairperson shall give his or
   45  her whole time to his or her duties.
   46    3. Members of the board other than the [chairman]  chairperson  shall,
   47  when  performing  the  work  of the board, be compensated at [the] a per
   48  diem rate of [two hundred and fifty dollars per day] .0038 of the annual
   49  salary of the chairperson, together with an  allowance  for  actual  and
   50  necessary  expenses incurred in the discharge of their duties hereunder.
   51  The [chairman] chairperson shall receive an annual salary  to  be  fixed
   52  within the amount available therefor by appropriation, in addition to an
   53  allowance  for  expenses actually and necessarily incurred by him or her
   54  in the performance of his or her duties.
   55    4. (a) The board may appoint an  executive  director  and  such  other
   56  persons,  including but not limited to attorneys, mediators, trial exam-
       S. 1406                            83                            A. 2106
 
    1  iners, directors for local or program  areas,  members  of  fact-finding
    2  boards  and representatives of employee organizations and public employ-
    3  ers to serve as technical advisers to such fact-finding  boards,  as  it
    4  may  from  time  to time deem necessary for the performance of its func-
    5  tions, prescribe their duties, fix their compensation  and  provide  for
    6  reimbursement of their expenses within the amounts made available there-
    7  for by appropriation. Attorneys appointed under this section may, at the
    8  direction  of  the board, appear for and represent the board in any case
    9  in court.
   10    (b) No member of the board or its appointees pursuant to this subdivi-
   11  sion, including without limitation any mediator or fact-finder  employed
   12  or  retained by the board, shall, except as required by this article, be
   13  compelled to nor shall he or she voluntarily disclose to any administra-
   14  tive or judicial tribunal or at the legislative hearing,  held  pursuant
   15  to  subparagraph  (iii) of paragraph (e) of subdivision three of section
   16  two hundred nine of this article, any information relating to the resol-
   17  ution of a particular dispute in the course of  collective  negotiations
   18  acquired  in  the  course  of  his or her official activities under this
   19  article, nor shall any  reports,  minutes,  written  communications,  or
   20  other  documents  pertaining  to  such  information  and acquired in the
   21  course of his or her official activities under this article  be  subject
   22  to  subpoena or voluntarily disclosed; except that where the information
   23  so required indicates that the person  appearing  or  who  has  appeared
   24  before  the  board  has  been the victim of, or otherwise involved in, a
   25  crime, other than a criminal contempt in a case involving or growing out
   26  of a violation of this article,  said  members  of  the  board  and  its
   27  appointees may be required to testify fully in relation thereto upon any
   28  examination,  trial, or other proceeding in which the commission of such
   29  crime is the subject of inquiry.
   30    In addition to the powers and functions provided in other sections  of
   31  this  article  and article twenty of the labor law, the board shall have
   32  the following powers and functions:
   33    (m) To coordinate the administration and oversight of labor  practices
   34  and labor relations dispute resolution activities for public and private
   35  sector  employees  and  employers as provided for in this article and in
   36  article twenty of the labor law.
   37    6. Notwithstanding any other provisions of law, neither the [president
   38  of the civil service commission]  commissioners  of  the  civil  service
   39  department  nor  the  state  department  of  labor, or the civil service
   40  commission or any other  officer,  employer,  board  or  agency  of  the
   41  [department]  departments  of  civil  service  or labor shall supervise,
   42  direct or control the board in the performance of any of  its  functions
   43  or  the  exercise  of  any  of  its powers under this article; provided,
   44  however, that nothing herein shall be construed to exempt  employees  of
   45  the board from the provisions of [the civil service law] this chapter.
   46    § 4. Subdivision 1 of section 154-c of the civil service law, as added
   47  by chapter 306 of the laws of 1985, is amended to read as follows:
   48    1.  The  term  "managerial  or  confidential employee" as used in this
   49  section shall mean a full-time employee  or  officer  in  the  executive
   50  branch of the state whose position is designated managerial or confiden-
   51  tial  pursuant  to  article  fourteen  of  this  chapter, civilian state
   52  employees of the division of military and naval affairs in the executive
   53  department whose positions are not in, or are  excluded  from  represen-
   54  tation rights in, any recognized or certified negotiating unit, officers
   55  and employees excluded from representation rights under article fourteen
   56  of  this  chapter  pursuant  to  rules and regulations of the public and
       S. 1406                            84                            A. 2106
 
    1  private employment relations board, officers and employees  whose  sala-
    2  ries  are prescribed by section nineteen of the correction law, officers
    3  and employees whose salaries are provided for by paragraph (a) of subdi-
    4  vision  one  of  section  two  hundred fifteen of the executive law, and
    5  employees in positions in the professional service in the state  univer-
    6  sity which are designated, stipulated or excluded from negotiating units
    7  as managerial or confidential as defined pursuant to article fourteen of
    8  this chapter.
    9    §  5. Paragraph a of subdivision 2 of section 159 of the civil service
   10  law, as amended by chapter 1028 of the laws of 1981, is amended to  read
   11  as follows:
   12    a. The benefits provided thereby shall be available to all state offi-
   13  cers  and  employees  in the executive branch whose positions are desig-
   14  nated managerial or confidential pursuant to article  fourteen  of  this
   15  chapter  and  all  state  officers and employees excluded from represen-
   16  tation rights under this chapter pursuant to rules  and  regulations  of
   17  the public and private employment relations board, subject to reasonable
   18  underwriting restrictions of the selected insurers;
   19    §  6.  Paragraph  (d)  of  subdivision  3  of section 209 of the civil
   20  service law, as amended by chapter 216 of the laws of 1977,  is  amended
   21  to read as follows:
   22    (d)  in  the  event  that the findings of fact and recommendations are
   23  made public by a fact-finding board appointed by  the  board  or  estab-
   24  lished  pursuant to procedures agreed upon by the parties under subdivi-
   25  sion two of this section, and the  impasse  continues,  the  public  and
   26  private employment relations board shall have the power to take whatever
   27  steps  it  deems  appropriate  to resolve the dispute, including (i) the
   28  making of recommendations after giving due consideration to the findings
   29  of fact and recommendations of such fact-finding board, but  no  further
   30  fact-finding  board  shall be appointed and (ii) upon the request of the
   31  parties, assistance in providing for voluntary arbitration;
   32    § 7. Subdivision 9 of section 701 of the  labor  law,  as  amended  by
   33  chapter 166 of the laws of 1991, is amended to read as follows:
   34    9.  The term "board" means the public and private employment relations
   35  board created by section [seven hundred two of this article] two hundred
   36  five of the civil service law.
   37    § 8. Section 702 of the labor law is REPEALED.
   38    § 9. The labor law is amended by adding a new section 717-a to read as
   39  follows:
   40    § 717-a. Employment relations board  abolished.  The  New  York  state
   41  employment  relations  board created by former section seven hundred two
   42  of this article is hereby abolished and the term of any  member  thereof
   43  not  already  in  hold  over status hereby expires with the enactment of
   44  this section.
   45    § 10. Paragraph (c) of subdivision 1 of section 169 of  the  executive
   46  law,  as  amended by chapter 634 of the laws of 1998, is amended to read
   47  as follows:
   48    (c) commissioner of agriculture and markets, commissioner of  alcohol-
   49  ism  and  substance  abuse  services, adjutant general, commissioner and
   50  president of state civil service commission,  commissioner  of  economic
   51  development,  chair  of  the  energy research and development authority,
   52  executive director of the board of real property services, president  of
   53  higher  education  services corporation, commissioner of motor vehicles,
   54  member-chair of board of parole, director of probation and  correctional
   55  alternatives,  chair  of  public and private employment relations board,
   56  secretary of state, chair  of  the  state  racing  and  wagering  board,
       S. 1406                            85                            A. 2106
 
    1  commissioner  of  alcoholism  and  substance  abuse  services, executive
    2  director of the housing finance  agency,  commissioner  of  housing  and
    3  community  renewal,  executive director of state insurance fund, commis-
    4  sioner-chair  of  state  liquor authority, chair of the workers' compen-
    5  sation board;
    6    § 11. Paragraph (e) of subdivision 1 of section 169 of  the  executive
    7  law,  as  amended by chapter 437 of the laws of 1995, is amended to read
    8  as follows:
    9    (e) chairman of state  athletic  commission,  chairman  and  executive
   10  director  of consumer protection board, member-chairman of crime victims
   11  board, chairman of human rights appeal board, chairman of the industrial
   12  board of appeals, [chairman of the employment relations board,] chairman
   13  of the state commission of correction, members of the board  of  parole,
   14  members of the state racing and wagering board, member-chairman of unem-
   15  ployment  insurance  appeal  board,  director  of veterans' affairs, and
   16  vice-chairman of the workers' compensation board;
   17    § 12. Subdivision b of section 229 of the executive law, as  added  by
   18  chapter 336 of the laws of 1969, is amended to read as follows:
   19    b.  The  said review panel shall consist of three persons who shall be
   20  selected as follows. One person shall be selected by the superintendent.
   21  One person shall be selected by the employee organization recognized  or
   22  certified  to represent the member pursuant to the provisions of article
   23  fourteen of the civil service law. The third person shall be selected by
   24  the other two or, if they cannot agree, he or she shall be  selected  by
   25  the  chair of the public and private employment relations board. Each of
   26  the three persons so selected shall be appointed by  the  superintendent
   27  and shall hold office until a successor has been selected and appointed.
   28    §  13.  Subdivision  12-f  of  section  8 of the state finance law, as
   29  amended by chapter 732 of the laws  of  1988,  is  amended  to  read  as
   30  follows:
   31    12-f.  Notwithstanding  any  inconsistent  provision  of  the court of
   32  claims act, examine, audit and certify for payment of any claim  submit-
   33  ted  and  approved  by  the  head  of the state department or agency for
   34  personal property of an officer or employee, whose  position  is  desig-
   35  nated  managerial  or  confidential  pursuant to article fourteen of the
   36  civil service law, and of civilian state employees of  the  division  of
   37  military  and  naval affairs in the executive department whose positions
   38  are not in, or are excluded from representation rights  in,  any  recog-
   39  nized  or  certified  negotiating  unit,  and  of officers and employees
   40  excluded from representation rights under article fourteen of the  civil
   41  service  law pursuant to rules and regulations of the public and private
   42  employment relations board, damaged or destroyed in the actual  perform-
   43  ance  of  official  duties without fault or negligence of the officer or
   44  employee other than a claim specified and covered by subdivision  twelve
   45  or  twelve-d  of this section after March thirty-first, nineteen hundred
   46  eighty-eight. Payment of such claim shall not exceed the  sum  of  three
   47  hundred fifty dollars.  Such payments for claims not in excess of seven-
   48  ty-five dollars may be made from a petty cash account established pursu-
   49  ant  to  section  one  hundred fifteen of this chapter and in the manner
   50  prescribed therein and pursuant to regulations of  the  comptroller.  No
   51  person  submitting  a  claim under this subdivision shall have any claim
   52  for damages to such personal property approved pursuant to the provision
   53  of subdivision four of section five hundred thirty of the labor  law  or
   54  any other applicable provision of law.
   55    §  14.  Subdivisions  3, 11 and 13 of section 201 of the state finance
   56  law, subdivisions 3 and 13 as amended by chapter 233 of the laws of 1992
       S. 1406                            86                            A. 2106
 
    1  and subdivision 11 as added by chapter 421 of  the  laws  of  1990,  are
    2  amended to read as follows:
    3    3.  The  comptroller is hereby authorized to deduct from the salary of
    4  any employee of the state in the  executive  branch  whose  position  is
    5  designated  managerial  or  confidential pursuant to article fourteen of
    6  the civil service law, employees covered  by  section  nineteen  of  the
    7  correction  law,  employees  in  the  professional  service in the state
    8  university which are designated, stipulated or excluded from negotiating
    9  units as managerial or confidential as defined pursuant to article four-
   10  teen of the civil service law, employees covered  by  paragraph  (a)  of
   11  subdivision  one  of section two hundred fifteen of the executive law or
   12  in the division of military and naval affairs of the  executive  depart-
   13  ment  or  excluded  from representation rights under article fourteen of
   14  the civil service law pursuant to rules or regulations of the public and
   15  private employment relations board, judges and justices of  the  unified
   16  court system and nonjudicial employees thereof not in collective negoti-
   17  ating  units,  such amount as such employee may specify in writing filed
   18  in a manner determined by the comptroller for the payment  of  insurance
   19  premiums  for a group insurance plan, or a wholesale, franchise or simi-
   20  lar mass-marketed insurance policy or program and transmit deductions so
   21  withheld to the insurance or  other  company,  organization,  or  agency
   22  issuing or administering said policy. Any such written authorization may
   23  be  withdrawn  by the employee at any time upon filing written notice of
   24  such withdrawal in a manner  determined  by  the  comptroller,  or  such
   25  deduction  may  be terminated on notice to the comptroller by the insur-
   26  ance or other company, organization or agency  in  accordance  with  the
   27  terms of the policy.
   28    11. Notwithstanding any other inconsistent provision of law, the comp-
   29  troller, after receipt of written directions of the director of employee
   30  relations,  is  authorized  to deduct from the salary of any employee of
   31  the state in the executive branch whose position is designated manageri-
   32  al or confidential pursuant to article fourteen  of  the  civil  service
   33  law,  employees  covered  by  section  nineteen  of  the correction law,
   34  employees in the professional service in the state university which  are
   35  designated,  stipulated or excluded from negotiating units as managerial
   36  or confidential as defined pursuant to article  fourteen  of  the  civil
   37  service  law,  employees  covered by paragraph (a) of subdivision one of
   38  section two hundred fifteen of the executive law or in the  division  of
   39  military  and naval affairs of the executive department or excluded from
   40  representation rights under article fourteen of the  civil  service  law
   41  pursuant  to  rules  or regulations of the public and private employment
   42  relations board, employees of the legislature, judges  and  justices  of
   43  the  unified  court  system  and  nonjudicial  employees  thereof not in
   44  collective negotiating units, such amount as such employee  may  specify
   45  in  writing filed with the payroll officer of such employee's agency for
   46  the payment of child care fees for services at child care centers desig-
   47  nated by the director of employee relations and transmit  deductions  so
   48  withheld  to  such designated child care center providing such services.
   49  Any such written authorization may be withdrawn by the employee  at  any
   50  time  upon  filing  written  notice  of such withdrawal with the payroll
   51  officer of such employee's agency, or such deduction may  be  terminated
   52  on  notice to the payroll officer of such employee's agency by the child
   53  care center.
   54    13. The comptroller is authorized to deduct from  the  salary  of  any
   55  employee  of the state in the legislative branch and any employee in the
   56  executive or judicial branch whose position is designated managerial  or
       S. 1406                            87                            A. 2106
 
    1  confidential  pursuant to article fourteen of the civil service law, any
    2  employee covered by section nineteen of the correction law, employees in
    3  the professional service in the state university which  are  designated,
    4  stipulated or excluded from negotiating units as managerial or confiden-
    5  tial  as  defined pursuant to article fourteen of the civil service law,
    6  employees covered by paragraph (a) of subdivision  one  of  section  two
    7  hundred  fifteen of the executive law or in the division of military and
    8  naval affairs of the executive department  or  excluded  from  represen-
    9  tation  rights  under article fourteen of the civil service law pursuant
   10  to rules or regulations of the public and private  employment  relations
   11  board or any employee represented by an employee organization who elects
   12  pursuant to an agreement entered into between the state and the employee
   13  organization  to participate in such state authorized individual retire-
   14  ment plan such amount as such employee may specify in writing filed in a
   15  manner determined by the comptroller for contribution to  an  authorized
   16  individual retirement plan as determined pursuant to section two hundred
   17  eight  of  this  article  and  to transmit deductions so withheld to the
   18  financial organization which operates such authorized individual retire-
   19  ment plan. Any such  written  authorization  may  be  withdrawn  by  the
   20  employee  at any time upon filing written notice of such withdrawal in a
   21  manner determined by the comptroller or such deduction may be terminated
   22  on notice to the comptroller by the financial organization in accordance
   23  with the terms of such plan.
   24    § 15. Subdivisions 1 and 2 of section 209-a of the state finance  law,
   25  as  amended  by  chapter 138 of the laws of 1997, are amended to read as
   26  follows:
   27    1. Notwithstanding any other law, rule or regulation to the  contrary,
   28  where, and to the extent that, an agreement between the state or the New
   29  York  state  canal corporation and an employee organization entered into
   30  pursuant to article fourteen of the  civil  service  law  on  behalf  of
   31  employees in a collective negotiating unit established pursuant to arti-
   32  cle  fourteen  of  the  civil  service law provides for the payment of a
   33  supplement to the workers' compensation award, such supplement shall  be
   34  paid  in  accordance with such agreement. Officers and employees serving
   35  in positions in the executive branch which are designated managerial  or
   36  confidential  pursuant  to  article  fourteen  of the civil service law,
   37  civilian state employees of the division of military and  naval  affairs
   38  of  the executive department whose positions are not in, or are excluded
   39  from representation rights in any recognized  or  certified  negotiating
   40  unit,  those  excluded from representation rights under article fourteen
   41  of the civil service law pursuant to rules and regulations of the public
   42  and private employment relations board and officers and employees of the
   43  legislature shall receive a  supplement  to  the  workers'  compensation
   44  award  provided,  however,  that officers and employees serving in posi-
   45  tions in the executive branch which are designated managerial or  confi-
   46  dential  pursuant to article fourteen of the civil service law, civilian
   47  state employees of the division of military and  naval  affairs  of  the
   48  executive  department  whose  positions are not in, or are excluded from
   49  representation rights in any recognized or  certified  negotiating  unit
   50  and  those excluded from representation rights under article fourteen of
   51  the civil service law pursuant to rules and regulations  of  the  public
   52  and  private  employment  relations  board shall receive such supplement
   53  only with respect to an absence resulting from an occupational injury or
   54  disease occurring on or before June thirtieth, nineteen hundred  ninety-
   55  two.  Such  supplement  shall be paid in accordance with rules and regu-
       S. 1406                            88                            A. 2106
 
    1  lations to be promulgated by the president of the civil service  commis-
    2  sion.
    3    For the sole purpose of retirement credit, retirement contribution and
    4  final  average  salary  under the retirement and social security law, an
    5  employee's compensation for the period during which he or  she  receives
    6  such  supplement  and  such award shall be deemed to be the full compen-
    7  sation or salary such employee would have earned  or  been  entitled  to
    8  receive  had  he  or  she not received the workers' compensation benefit
    9  provided by such agreement.  During  the  period  of  time  an  employee
   10  receives  payment  of  such  supplement and workers' compensation award,
   11  such employee shall be deemed on the payroll in full  status  for  those
   12  purposes provided for in such agreement.
   13    2.  Notwithstanding any other law, rule or regulation to the contrary,
   14  where, and to the extent that, an agreement between the state or the New
   15  York state canal corporation and an employee organization  entered  into
   16  pursuant  to  article  fourteen  of  the  civil service law on behalf of
   17  employees in a collective negotiating unit established pursuant to arti-
   18  cle fourteen of the civil service law so provides, an employee placed on
   19  an authorized leave without pay during the course of an absence  result-
   20  ing  from  an  occupational injury or disease found to be compensable by
   21  the workers' compensation board shall be deemed to be on the payroll  at
   22  such  employee's  prevailing rate of annual compensation for the purpose
   23  of retirement  credit  and  employer  contributions  to  the  retirement
   24  system.  Officers  and  employees  serving in positions in the executive
   25  branch which are designated managerial or confidential pursuant to arti-
   26  cle fourteen of the civil service law, civilian state employees  of  the
   27  division of military and naval affairs of the executive department whose
   28  positions  are not in, or are excluded from representation rights in any
   29  recognized or certified negotiating unit and those excluded from  repre-
   30  sentation  rights under article fourteen of the civil service law pursu-
   31  ant to rules and  regulations  of  the  public  and  private  employment
   32  relations board who are placed on an authorized leave without pay during
   33  the  course  of  an  absence  resulting  from  an occupational injury or
   34  disease found to be  compensable  by  the  workers'  compensation  board
   35  occurring  on or after July first, nineteen hundred ninety-two, shall be
   36  deemed to be on the payroll at such officer's or  employee's  prevailing
   37  rate  of  compensation for the purpose of retirement credit and employer
   38  contributions to the retirement system. Any employee contribution relat-
   39  ing to the retirement credit provided by this subdivision shall be  paid
   40  directly by such employee to the retirement system pursuant to the rules
   41  and  regulations  of  the comptroller. The retirement credit provided by
   42  this subdivision shall only apply to a period of authorized leave  with-
   43  out  pay  occurring during the first twelve months of absence related to
   44  such occupational injury or disease.
   45    § 16. Subdivision 2 of section 209-b of  the  state  finance  law,  as
   46  added by chapter 315 of the laws of 1995, is amended to read as follows:
   47    2.  Notwithstanding any other law, rule or regulation to the contrary,
   48  officers and employees serving in  positions  in  the  executive  branch
   49  which  are  designated  managerial  or  confidential pursuant to article
   50  fourteen of the civil service law, civilian state employees of the divi-
   51  sion of military and naval affairs of  the  executive  department  whose
   52  positions  are not in, or are excluded from representation rights in any
   53  recognized or certified negotiating unit and those excluded from  repre-
   54  sentation  rights under article fourteen of the civil service law pursu-
   55  ant to rules and  regulations  of  the  public  and  private  employment
   56  relations  board  whose permanent positions in the competitive, non-com-
       S. 1406                            89                            A. 2106
 
    1  petitive or labor classes are abolished as a consequence  of  the  state
    2  contracting  for  goods  and services may receive a severance benefit in
    3  the form of a lump sum payment or an educational stipend. Such severance
    4  benefit  shall  be  paid  in accordance with rules and regulations to be
    5  promulgated by the president of the civil service commission.  A  sever-
    6  ance  benefit  in  the form of a lump sum payment shall be repaid to the
    7  state under the circumstances and in the manner specified by such  rules
    8  and regulations.
    9    §  17.  Subdivision 2 of section 1226-k of the public authorities law,
   10  as added by chapter 647 of the laws of  1994,  is  amended  to  read  as
   11  follows:
   12    2. A transferred employee shall remain in the same collective bargain-
   13  ing unit as was the case prior to his or her transfer; successor employ-
   14  ees  to the positions held by such transferred employees shall, consist-
   15  ent with the provisions of article fourteen of the civil service law, be
   16  included in the same unit as their predecessors.  Employees  serving  in
   17  positions  in newly created titles shall be assigned to the same collec-
   18  tive bargaining unit as they would have been assigned to such unit  were
   19  such titles created prior to the establishment of the authority. Nothing
   20  contained in this title shall be construed (a) to diminish the rights of
   21  employees pursuant to a collective bargaining agreement or (b) to affect
   22  existing  law  with  respect to an application to the public and private
   23  employment relations board seeking  a  designation  by  the  board  that
   24  certain persons are managerial or confidential.
   25    §  18.  Subdivision 2 of section 1699-i of the public authorities law,
   26  as added by chapter 83 of the laws  of  1995,  is  amended  to  read  as
   27  follows:
   28    2. A transferred employee shall remain in the same collective bargain-
   29  ing unit as was the case prior to his or her transfer; successor employ-
   30  ees  to the positions held by such transferred employees shall, consist-
   31  ent with the provisions of article fourteen of the civil service law, be
   32  included in the same unit as their predecessors.  Employees, other  than
   33  managerial  or  confidential  persons (as defined in article fourteen of
   34  the civil service law), serving in positions  in  newly  created  titles
   35  shall be assigned to the appropriate bargaining unit.  Nothing contained
   36  herein  shall be construed to affect: (a) the rights of employees pursu-
   37  ant to a  collective  bargaining  agreement;  (b)  the  representational
   38  relationships  among  employee organizations or the bargaining relation-
   39  ships between the state and an employee organization;  or  (c)  existing
   40  law  with respect to an application to the public and private employment
   41  relations board, provided, however, that the merger of such  negotiating
   42  units of employees shall be effected only with the consent of the recog-
   43  nized and certified representatives of such units and of the authority.
   44    §  19. Subdivision 1 of section 1739 of the public authorities law, as
   45  added by chapter 738 of the laws of 1988, is amended to read as follows:
   46    1. For the purpose of article fourteen of the civil service  law,  the
   47  authority  shall  be  deemed to be the public employer and as such shall
   48  negotiate with and enter into written agreements with employee organiza-
   49  tions representing the staff of the authority that have  been  certified
   50  or  recognized under such article. In carrying on such negotiations, the
   51  authority shall consult with and seek  assistance  from  the  office  of
   52  labor  relations and collective bargaining of the city board and the New
   53  York city office of municipal labor  relations.  The  state  public  and
   54  private employment relations board shall have exclusive jurisdiction for
   55  the  purpose  of  administering  the  provisions of such article and the
       S. 1406                            90                            A. 2106
 
    1  provisions of section two hundred twelve of such article  shall  not  be
    2  applicable to any such negotiations.
    3    §  20.  Paragraph  b  of  subdivision  4 of section 1739 of the public
    4  authorities law, as added by chapter 738 of the laws of 1988, is amended
    5  to read as follows:
    6    b. Any such titles for which terms and conditions are bargained pursu-
    7  ant to paragraph a of this subdivision shall be deemed to  be  successor
    8  titles  within the meaning of applicable law and, so long as the respon-
    9  sibilities of employees in these titles are reasonably  related  to  the
   10  responsibilities of employees currently represented by a public employee
   11  organization,  shall  be  accreted to the appropriate bargaining certif-
   12  icates for which such public employee organization shall be  voluntarily
   13  recognized  as  the  bargaining agent under procedures acceptable to the
   14  state public and private employment relations board.
   15    § 21. Subdivision 2 of section 2755 of the public authorities law,  as
   16  added by chapter 663 of the laws of 1989, is amended to read as follows:
   17    2. A transferred employee shall remain in the same collective bargain-
   18  ing unit as was the case prior to his or her transfer; successor employ-
   19  ees  to the positions held by such transferred employees shall, consist-
   20  ent with the provisions of article fourteen of the civil service law, be
   21  included in the same unit as their predecessors.  Employees  serving  in
   22  positions in newly created titles shall be assigned to such same collec-
   23  tive  bargaining unit if they would have been assigned to such unit were
   24  such titles created prior to the establishment of the authority. Nothing
   25  contained in this title shall be construed to diminish (a) the rights of
   26  employees pursuant to a collective bargaining agreement or (b) to affect
   27  existing law with respect to an application to the  public  and  private
   28  employment  relations  board  seeking  a  designation  by the board that
   29  certain persons are managerial or confidential.
   30    § 22. Subdivision 2 of section 2781 of the public authorities law,  as
   31  added by chapter 686 of the laws of 1993, is amended to read as follows:
   32    2. A transferred employee shall remain in the same collective bargain-
   33  ing unit as was the case prior to his or her transfer; successor employ-
   34  ees  to the positions held by such transferred employees shall, consist-
   35  ent with the provisions of article fourteen of the civil service law, be
   36  included in the same unit as their predecessors.  Employees  serving  in
   37  positions  in newly created titles shall be assigned to the same collec-
   38  tive bargaining unit as they would have been assigned to such unit  were
   39  such titles created prior to the establishment of the authority. Nothing
   40  contained in this title shall be construed (a) to diminish the rights of
   41  employees pursuant to a collective bargaining agreement or (b) to affect
   42  existing  law  with  respect to an application to the public and private
   43  employment relations board seeking  a  designation  by  the  board  that
   44  certain persons are managerial or confidential.
   45    §  23. Subdivision 3 of section 3246 of the public authorities law, as
   46  added by chapter 220 of the laws of 1990, is amended to read as follows:
   47    3. A transferred employee shall remain in the same collective bargain-
   48  ing unit as was the case prior to his or her transfer; successor employ-
   49  ees to the positions held by such transferred employees shall,  consist-
   50  ent with the provisions of article fourteen of the civil service law, be
   51  included  in  the  same unit as their predecessors. Employees serving in
   52  positions in newly created titles shall be assigned to such same collec-
   53  tive bargaining unit if they would have been assigned to such unit  were
   54  such titles created prior to the establishment of the corporation. Noth-
   55  ing  contained  in  this  title  shall  be construed to diminish (a) the
   56  rights of employees pursuant to a collective bargaining agreement or (b)
       S. 1406                            91                            A. 2106
 
    1  to affect existing law with respect to an application to the public  and
    2  private  employment  relations  board seeking a designation by the board
    3  that certain persons are managerial or confidential.
    4    §  24. Section 473 of the retirement and social security law, as added
    5  by chapter 382 of the laws of 1973, is amended to read as follows:
    6    § 473. Impasses in coalition negotiations.   (a) In the  event  of  an
    7  impasse occurring during the course of coalition negotiations either the
    8  employer  coalition  or  the employee organization coalition may declare
    9  impasse no earlier than September fifteenth or later than October  first
   10  in  any  year.  Notice  of  impasse  shall  be filed with the public and
   11  private employment relations board created pursuant to article  fourteen
   12  of the civil service law, as amended.
   13    (b)  Forthwith  after  receipt of the notice of impasse the public and
   14  private employment relations board shall appoint a fact finding board of
   15  not more than three members, each representative of the public,  from  a
   16  list  of  qualified  persons maintained by the board, which fact finding
   17  board shall have, in addition to the  powers  delegated  to  it  by  the
   18  public  and private employment relations board, the power to make public
   19  recommendations for the resolution of the dispute.
   20    (c) If the dispute is not resolved by November fifteenth prior to  the
   21  legislative  session at which implementation of any changes described by
   22  the former section four hundred seventy-one  of  this  article  will  be
   23  sought,  the  fact finding board shall transmit its findings of fact and
   24  recommendations to the coalition parties and to the public  and  private
   25  employment relations board.
   26    (d)  In  the event either of the coalition parties to the impasse does
   27  not accept the recommendations of the fact finding board, such coalition
   28  party may submit its position with respect to  such  recommendations  of
   29  the  fact  finding  board to the public and private employment relations
   30  board and to the other coalition party to the impasse.
   31    (e) The public and private employment relations board shall cause such
   32  recommendation of the fact  finding  board  and  the  positions  of  the
   33  parties  to be made public prior to December first and shall hold public
   34  hearings thereon. In addition to the powers vested  in  the  public  and
   35  private employment relations board by law, it may require the assistance
   36  of representatives of any public retirement system or any public employ-
   37  er  or employee organization as defined in article fourteen of the civil
   38  service law and may request or permit, in its discretion, the  testimony
   39  of any person or organization whose testimony would assist in the resol-
   40  ution of the dispute in the public interest.
   41    (f) On or before January fifteenth following such notice of impasse or
   42  thirty days following the close of such hearings whichever first occurs,
   43  the  public  and  private  employment  relations board shall present its
   44  recommendations with respect to the impasse to the governor, the  legis-
   45  lature and the parties to the impasse.
   46    (g)  The  legislature  or  a  duly  authorized committee thereof shall
   47  forthwith conduct a  public  hearing  at  which  the  parties  shall  be
   48  required  to  explain their positions with respect to the issues and the
   49  recommendations of the fact finding board and  the  public  and  private
   50  employment  relations board; thereafter, the legislature shall take such
   51  action as it deems to be in the public interest, including the  interest
   52  of the public employees involved.
   53    §  25.   Paragraph a of subdivision 1 of section 656 of the retirement
   54  and social security law, as added by chapter 75 of the laws of 1989,  is
   55  amended to read as follows:
       S. 1406                            92                            A. 2106
 
    1    a. The term "managerial/confidential employee" as used in this section
    2  shall  mean  a  full time employee or officer in the executive branch of
    3  the state whose position has been designated managerial or  confidential
    4  pursuant  to  article  fourteen  of  the  civil service law, an employee
    5  covered  by  section  nineteen of the correction law, an employee in the
    6  professional service in the state university who is  designated,  stipu-
    7  lated  or  excluded from negotiating units as managerial or confidential
    8  as defined pursuant to article fourteen of the  civil  service  law,  an
    9  employee  covered  by  paragraph  (a)  of subdivision one of section two
   10  hundred fifteen of the executive law  or  who  has  been  excluded  from
   11  representation  rights  under  such  article pursuant to rules and regu-
   12  lations of the public and private employment relations board, or who  is
   13  a  civilian state employee of the division of military and naval affairs
   14  in the executive department whose position is not  in,  or  is  excluded
   15  from  representation  rights  in, any recognized or certified bargaining
   16  unit, and whose salary  is  paid  directly  by  the  state,  judges  and
   17  justices  of  the unified court system and nonjudicial employees thereof
   18  not in collective negotiating units.  Managerial/confidential  employees
   19  may  be  considered  state  employees  for  the  purposes of section six
   20  hundred fifty-five of this article provided, however, an employee  shall
   21  be  eligible for the greater of the benefits afforded by this section or
   22  section six hundred fifty-five of this article and  shall  in  no  event
   23  receive benefits pursuant to both such sections.
   24    §  26.  Section  6208 of the education law, as added by chapter 305 of
   25  the laws of 1979, is amended to read as follows:
   26    § 6208. Collective negotiation.  For the purposes of article  fourteen
   27  of  the  civil  service  law,  the  city university of New York shall be
   28  deemed to be the public employer and as such shall  negotiate  with  and
   29  enter  into  written agreements with employee organizations representing
   30  the instructional  staff  and  non-instructional  staff  of  the  senior
   31  colleges and community colleges of such university that have been certi-
   32  fied  or  recognized  under such article.  For purposes of such article,
   33  the chancellor of the city university shall be deemed to  be  the  chief
   34  executive  officer, the chief legal officer of the city university shall
   35  be chief legal officer, and the legislature of the  state  of  New  York
   36  shall be deemed to be the legislative body of the government.  In carry-
   37  ing  on such negotiations, the city university of New York shall consult
   38  with and seek assistance from the state office of employee relations and
   39  the New York city office of municipal labor relations.  The state public
   40  and private employment relations board shall have exclusive jurisdiction
   41  for the purpose of administering the provisions of such article and  the
   42  provisions  of  section  two hundred twelve of such article shall not be
   43  applicable to any such negotiations.
   44    § 27. Subdivision 12 of section 6310 of the education law, as added by
   45  chapter 552 of the laws of 1984, is amended to read as follows:
   46    12. For the purposes of article fourteen of the civil service law, the
   47  community college regional board of trustees shall be deemed to  be  the
   48  public  employer and as such shall negotiate with and enter into written
   49  agreements with employee organizations  representing  the  instructional
   50  staff  and  non-instructional  staff of the community colleges that have
   51  been certified or recognized under such article. For  purposes  of  such
   52  article,  the  president  of the community college shall be deemed to be
   53  the chief executive officer, the chief legal officer  of  the  community
   54  college shall be chief legal officer, and the community college regional
   55  board  of  trustees  shall  be  deemed to be the legislative body of the
   56  government. The state public  and  private  employment  relations  board
       S. 1406                            93                            A. 2106
 
    1  shall  have  exclusive jurisdiction for the purpose of administering the
    2  provisions of such article.
    3    §  28.  Subdivision  7 of section 39 of the judiciary law, as added by
    4  chapter 966 of the laws of 1976 and such section as renumbered by  chap-
    5  ter 156 of the laws of 1978, is amended to read as follows:
    6    7.  Upon  the termination of the period of unchallenged representation
    7  of any  employee  organization  certified  or  recognized  to  represent
    8  employees  of  the courts or court related agencies of the unified court
    9  system, petitions may be filed with the public  and  private  employment
   10  relations board to alter negotiating units in accordance with the stand-
   11  ards  set  forth  in section two hundred seven of the civil service law;
   12  provided, however, that such board shall not alter any such  negotiating
   13  unit  comprised  exclusively of such employees or that part of any other
   14  negotiating unit comprised of such employees.  The  provisions  of  this
   15  subdivision  shall  be  applicable  in any case in which the negotiating
   16  unit is so defined on the effective date of this subdivision in  accord-
   17  ance  with the provisions of either section two hundred seven or section
   18  two hundred twelve of the civil service law, as the case may be. Nothing
   19  herein shall preclude the merger of negotiating units of such  employees
   20  with  the consent of the administrative board of the judicial conference
   21  and the recognized or certified representatives of the negotiating units
   22  involved.
   23    § 29. Subdivision (a) of section 12 of the executive law, as added  by
   24  section  2  of  part B of chapter 383 of the laws of 2001, is amended to
   25  read as follows:
   26    (a) Notwithstanding any other law, the state,  through  the  governor,
   27  may  execute  a  tribal-state  compact with the Seneca Nation of Indians
   28  pursuant to the Indian Gaming Regulatory Act of 1988 (P.L.  100-497;  25
   29  U.S.C.  §§§§  2701-2721  and 18 U.S.C. §§§§ 1166-1168) consistent with a
   30  memorandum of understanding between the governor and  the  president  of
   31  the  Seneca  Nation  of Indians executed on June twentieth, two thousand
   32  one and filed with the department of state  on  June  twenty-first,  two
   33  thousand  one. Such tribal-state compact shall be deemed ratified by the
   34  legislature upon the governor's certification to the temporary president
   35  of the senate, the speaker of the assembly, and the secretary of  state,
   36  that  such  compact, through its terms, by a memorandum of understanding
   37  or other agreement between the state and Nation, by a Nation's ordinance
   38  or resolution, by statute, by executive order, or by the  terms  of  any
   39  other  agreement  entered  into by or on behalf of the Nation, provides:
   40  (i) assurances that the Nation will provide (1) reasonable access to the
   41  gaming and related facilities to labor union organizers for purposes  of
   42  a  campaign  to solicit employee support for labor union representation;
   43  (2) permission for labor union  organizers  to  distribute  labor  union
   44  authorization  cards  on  site  for  the  purpose of soliciting employee
   45  support for labor union representation; and  (3)  recognition  of  labor
   46  unions as the exclusive collective bargaining representatives of employ-
   47  ees in appropriate bargaining units based upon a demonstration of major-
   48  ity  employee  support  of such labor unions by union authorization card
   49  check as verified, if necessary, by an independent arbitrator  appointed
   50  by  the [State] Public and Private Employment Relations Board in consul-
   51  tation with the Nation and the labor union;  (ii)  assurances  that  the
   52  Nation  has an adequate civil recovery system which guarantees fundamen-
   53  tal due process to visitors and  guests  of  the  facility  and  related
   54  facilities;  and  (iii)  assurances that the Nation will maintain during
   55  the term of the compact sufficient liability insurance  to  assure  that
   56  visitors and guests will be compensated for their injuries.
       S. 1406                            94                            A. 2106
 
    1    §  30.  Paragraph  (c)  of subdivision 2 of section 3304 of the public
    2  authorities law, as added by chapter 11 of the laws of 1997, is  amended
    3  to read as follows:
    4    (c)  existing  law  with  respect  to an application to the public and
    5  private employment relations board seeking designation by the board that
    6  certain persons are managerial or  confidential.  Nothing  herein  shall
    7  preclude  the  merger of negotiating units of employees with the consent
    8  of the recognized or certified representatives of such units.
    9    § 31. Paragraph (b) of subdivision 6 of section 279-d  of  the  county
   10  law,  as  added by chapter 93 of the laws of 2001, is amended to read as
   11  follows:
   12    (b) Northern Westchester joint water works shall  be  subject  to  the
   13  civil  service  law. Northern Westchester joint water works shall recog-
   14  nize the existing certified or  recognized  employee  organizations  for
   15  those  persons  who  become  employees of the Northern Westchester joint
   16  water works  pursuant  to  this  section  as  the  exclusive  collective
   17  bargaining representatives for such employees, who shall comprise corre-
   18  spondingly  new  collective bargaining units. Northern Westchester joint
   19  water works shall be bound by all existing collective bargaining  agree-
   20  ments  with  such  employee organizations; all existing terms and condi-
   21  tions of employment shall remain in effect until altered by the terms of
   22  a successor contract; successor employees to the positions held by  such
   23  employees  shall,  consistent with the provisions of article fourteen of
   24  the civil service law, be included in the same unit as  their  predeces-
   25  sors.  Employees  serving  in positions in newly created titles shall be
   26  assigned to the appropriate bargaining unit.  Nothing  contained  herein
   27  shall  be  construed  to  affect  the  rights of employees pursuant to a
   28  collective  bargaining  agreement,  the  representational  relationships
   29  among employee organizations or the bargaining relationships between the
   30  county, state and an employee organization, or existing law with respect
   31  to  an  application to the public and private employment relations board
   32  seeking designation by the board that certain persons are managerial  or
   33  confidential.  Nothing  herein  shall preclude the merger of negotiating
   34  units of employees with the  consent  of  the  recognized  or  certified
   35  representative  of  such  units.  The salary or compensation of any such
   36  officer or employee after such transfer, shall be paid by Northern West-
   37  chester joint water works. Northern Westchester joint water works shall,
   38  upon transfer, acknowledge and give credit for all leave  balances  held
   39  by such officers and employees on the date of transfer.
   40    § 32. The opening paragraph of paragraph d of subdivision 1 of section
   41  130 of the civil service law, as added by section 1 of part B of chapter
   42  68 of the laws of 2000, is amended to read as follows:
   43    Salary  grades  for  positions in the competitive, non-competitive and
   44  labor classes of the classified service of the state of New York  desig-
   45  nated  managerial  or  confidential pursuant to article fourteen of this
   46  chapter, civilian state employees of the division of military and  naval
   47  affairs  of  the executive department whose positions are not in, or are
   48  excluded from representation rights  in,  any  recognized  or  certified
   49  negotiating  unit,  and  those excluded from representation rights under
   50  article fourteen of this chapter pursuant to rules or regulations of the
   51  public and private employment relations board shall be as follows on the
   52  effective dates indicated:
   53    § 33. Subdivision 3 of section 212 of the civil service law, as  added
   54  by chapter 641 of the laws of 1998, is amended to read as follows:
   55    3.  Notwithstanding  any  other  provision of law to the contrary, the
   56  resolution of disputes in  the  course  of  collective  negotiations  as
       S. 1406                            95                            A. 2106
 
    1  provided  by section two hundred nine of this article shall apply to any
    2  organized fire department, police force, or  police  department  of  any
    3  government  subject  to  either  subdivision one or two of this section.
    4  Provided,  however, that a recognized or certified employee organization
    5  may elect to continue dispute resolution procedures which existed on the
    6  day prior to the effective date of this  subdivision  by  notifying  the
    7  appropriate public and private employment relations board in writing.
    8    §  34.  Subdivision 2 of section 905 of the public authorities law, as
    9  added by chapter 605 of the laws of 1999, is amended to read as follows:
   10    2. Nothing contained in this title shall be construed (a) to  diminish
   11  the rights of employees pursuant to a collective bargaining agreement or
   12  (b)  to affect existing law with respect to an application to the public
   13  and private employment relations board  seeking  a  designation  by  the
   14  board that certain persons are managerial or confidential.
   15    §  35.  Subdivision 2 of section 1147-h of the public authorities law,
   16  as added by chapter 691 of the laws of  1995,  is  amended  to  read  as
   17  follows:
   18    2. A transferred employee shall remain in the same collective bargain-
   19  ing unit as was the case prior to his or her transfer; successor employ-
   20  ees  to the positions held by such transferred employees shall, consist-
   21  ent with the provisions of article fourteen of the civil service law, be
   22  included in the same unit as their predecessors.  Employees  serving  in
   23  positions  in newly created titles shall be assigned to the same collec-
   24  tive bargaining unit as they would have been assigned to such unit  were
   25  such titles created prior to the establishment of the authority. Nothing
   26  contained in this title shall be construed (a) to diminish the rights of
   27  employees pursuant to a collective bargaining agreement or (b) to affect
   28  existing  law  with  respect to an application to the public and private
   29  employment relations board seeking  a  designation  by  the  board  that
   30  certain persons are managerial or confidential.
   31    §  36.  Subdivision  2  of section 1199-gggg of the public authorities
   32  law, as added by chapter 195 of the laws of 1995, is amended to read  as
   33  follows:
   34    2. A transferred employee shall remain in the same collective bargain-
   35  ing unit as was the case prior to his or her transfer; successor employ-
   36  ees  to the positions held by such transferred employees shall, consist-
   37  ent with the provisions of article fourteen of the civil service law, be
   38  included in the same unit as their predecessors.  Employees  serving  in
   39  positions  in newly created titles shall be assigned to the same collec-
   40  tive bargaining unit as they would have been assigned to such unit  were
   41  such titles created prior to the establishment of the authority. Nothing
   42  contained in this title shall be construed (a) to diminish the rights of
   43  employees pursuant to a collective bargaining agreement or (b) to affect
   44  existing  law  with  respect to an application to the public and private
   45  employment relations board seeking  a  designation  by  the  board  that
   46  certain persons are managerial or confidential.
   47    §  37.  Subdivision  2  of section 1199-ffff of the public authorities
   48  law, as added by chapter 411 of the laws of 1995, is amended to read  as
   49  follows:
   50    2. A transferred employee shall remain in the same collective bargain-
   51  ing unit as was the case prior to his or her transfer; successor employ-
   52  ees  to the positions held by such transferred employees shall, consist-
   53  ent with the provisions of article fourteen of the civil service law, be
   54  included in the same unit as their predecessors.  Employees  serving  in
   55  positions  in newly created titles shall be assigned to the same collec-
   56  tive bargaining unit as they would have been assigned to such unit  were
       S. 1406                            96                            A. 2106
 
    1  such titles created prior to the establishment of the authority. Nothing
    2  contained in this title shall be construed (a) to diminish the rights of
    3  employees pursuant to a collective bargaining agreement or (b) to affect
    4  existing  law  with  respect to an application to the public and private
    5  employment relations board seeking  a  designation  by  the  board  that
    6  certain persons are managerial or confidential.
    7    §  38.  Subdivision 2 of section 1230-l of the public authorities law,
    8  as added by chapter 275 of the laws of  2002,  is  amended  to  read  as
    9  follows:
   10    2. A transferred employee shall remain in the same collective bargain-
   11  ing unit as was the case prior to his or her transfer; successor employ-
   12  ees  to the positions held by such transferred employees shall, consist-
   13  ent with the provisions of article fourteen of the civil service law, be
   14  included in the same unit as their predecessors.  Employees  serving  in
   15  positions  in newly created titles shall be assigned to the same collec-
   16  tive bargaining unit as they would have been assigned to such unit  were
   17  such  titles  created  prior  to  the  establishment of the water board.
   18  Nothing contained in this title shall be construed (a) to  diminish  the
   19  rights of employees pursuant to a collective bargaining agreement or (b)
   20  to  affect existing law with respect to an application to the public and
   21  private employment relations board seeking a designation  by  the  board
   22  that certain persons are managerial or confidential.
   23    §  39.  Subdivision 2 of section 1949-g of the public authorities law,
   24  as added by chapter 130 of the laws of  1996,  is  amended  to  read  as
   25  follows:
   26    2. A transferred employee shall remain in the same collective bargain-
   27  ing unit as was the case prior to his or her transfer; successor employ-
   28  ees  to the positions held by such transferred employees shall, consist-
   29  ent with the provisions of article fourteen of the civil service law, be
   30  included in the same unit as their predecessors.  Employees  serving  in
   31  positions  in newly created titles shall be assigned to the same collec-
   32  tive bargaining unit as they would have been assigned to such unit  were
   33  such titles created prior to the establishment of the authority. Nothing
   34  contained in this title shall be construed (a) to diminish the rights of
   35  employees pursuant to a collective bargaining agreement or (b) to affect
   36  existing  law  with  respect to an application to the public and private
   37  employment relations board seeking  a  designation  by  the  board  that
   38  certain persons are managerial or confidential.
   39    §  40. Subdivision 2 of section 2581 of the public authorities law, as
   40  added by chapter 545 of the laws of 2000, is amended to read as follows:
   41    2. A transferred employee shall remain in the same collective bargain-
   42  ing unit as was the case prior to his or her transfer; successor employ-
   43  ees to the positions held by such transferred employees shall,  consist-
   44  ent with the provisions of article fourteen of the civil service law, be
   45  included  in  the  same unit as their predecessors. Employees serving in
   46  positions in newly created titles shall be assigned to such same collec-
   47  tive bargaining unit if they would have been assigned to such unit  were
   48  such  titles created prior to the establishment of the authority.  Noth-
   49  ing contained in this title shall  be  construed  to  diminish  (a)  the
   50  rights of employees pursuant to a collective bargaining agreement or (b)
   51  to  affect existing law with respect to an application to the public and
   52  private employment relations board seeking a designation  by  the  board
   53  that certain persons are managerial or confidential.
   54    §  41.  Subdivision 2 of section 2642-j of the public authorities law,
   55  as added by chapter 75 of the laws  of  2000,  is  amended  to  read  as
   56  follows:
       S. 1406                            97                            A. 2106
 
    1    2.  Nothing contained in this title shall be construed (a) to diminish
    2  the rights of employees pursuant to a collective bargaining agreement or
    3  (b) to affect existing law with respect to an application to the  public
    4  and  private  employment  relations  board  seeking a designation by the
    5  board that certain persons are managerial or confidential.
    6    §  42. Subdivision 3 of section 2657 of the public authorities law, as
    7  added by chapter 124 of the laws of 1998, is amended to read as follows:
    8    3. A transferred employee shall remain in the same collective bargain-
    9  ing unit as was the case prior to his or her transfer. Successor employ-
   10  ees to the positions held by such transferred employees shall,  consist-
   11  ent with the provisions of article fourteen of the civil service law, be
   12  included  in  the  same unit as their predecessors. Employees serving in
   13  positions in newly created titles shall be assigned to the same  collec-
   14  tive  bargaining unit as they would have been assigned to such unit were
   15  such titles created prior to the establishment of the authority.   Noth-
   16  ing  contained  in  this  title  shall  be construed (a) to diminish the
   17  rights of employees pursuant to a collective bargaining agreement or (b)
   18  to affect existing law with respect to an application to the public  and
   19  private  employment  relations  board seeking a designation by the board
   20  that certain persons are managerial or confidential.
   21    § 43. Subdivision 1 of section 3558 of the public authorities law,  as
   22  added by chapter 5 of the laws of 1997, is amended to read as follows:
   23    1. The employees of the corporation shall, for all purposes of article
   24  fourteen  of  the  civil  service  law, be deemed to be employees of the
   25  state of New York and shall be employed within the current state of  New
   26  York bargaining unit designations of either the professional, scientific
   27  and  technical  unit,  the  administration  services  unit,  operational
   28  services unit, institutional services unit or  security  services  unit.
   29  The  governor's  office of employee relations shall, for all purposes of
   30  article fourteen of the civil service law, act as agent for  the  corpo-
   31  ration,  and shall, with respect to the corporation, have all the powers
   32  and duties provided under sections six hundred fifty through six hundred
   33  fifty-four of the executive law.  Those persons who become employees  of
   34  the  corporation  pursuant  to this subdivision [one of this section] or
   35  who enter into the service of the corporation  following  the  effective
   36  date  of  the transfer shall retain their current bargaining unit desig-
   37  nations in either the professional, scientific  and  technical  services
   38  unit, the administrative services unit, the institutional services unit,
   39  the operational services unit, the security services unit or the securi-
   40  ty  supervisors  unit  of state employees. The corporation and the state
   41  shall recognize the existing certified or recognized employee  organiza-
   42  tions  for state employees as the exclusive collective bargaining repre-
   43  sentatives for such employees.
   44    Titles within collective bargaining units in existence  prior  to  the
   45  transfer  of  operations  to the corporation shall remain in those units
   46  and will not be altered by the public and private  employment  relations
   47  board  without  the consent of the corporation, the state and the recog-
   48  nized or certified representatives of the  negotiating  units  involved.
   49  New  titles  created after the date of the transfer of operations to the
   50  corporation will be placed in the appropriate unit  of  state  employees
   51  consistent  with the provisions of article fourteen of the civil service
   52  law.
   53    § 44. Paragraph (d) of subdivision 1 of section 2855 of the  education
   54  law,  as  added  by chapter 4 of the laws of 1998, is amended to read as
   55  follows:
       S. 1406                            98                            A. 2106
 
    1    (d) When the public and private employment  relations  board  makes  a
    2  determination  that  the  charter  school  demonstrates  a  practice and
    3  pattern of egregious and intentional violations of  subdivision  one  of
    4  section  two hundred nine-a of the civil service law involving interfer-
    5  ence  with or discrimination against employee rights under article four-
    6  teen of the civil service law.
    7    § 45. All powers, duties and functions heretofore conferred  upon  the
    8  public  employment  relations board and state employment relations board
    9  and the respective chairpersons thereof pursuant to article  14  of  the
   10  civil  service  law and article 20 of the labor law, respectively, shall
   11  be transferred to and assumed  by  the  public  and  private  employment
   12  relations board and the chairperson thereof.
   13    §  46.  Transfer  of  employees.  Upon  the transfer of the functions,
   14  powers and duties of the public employment  relations  board  and  state
   15  employment  relations  board  pursuant  to  this  act,  the  transfer of
   16  affected employees shall be in accordance with section 70 of  the  civil
   17  service law.
   18    §  47.  Transfer of records. The public employment relations board and
   19  the state employment relations board shall deliver  to  the  public  and
   20  private employment relations board all books, papers, records, and prop-
   21  erty  of the respective boards pertaining to the functions herein trans-
   22  ferred to the public and private employment relations board pursuant  to
   23  this act.
   24    §  48.  Continuity  of authority. For the purpose of succession to all
   25  functions, powers, duties and obligations transferred and  assigned  to,
   26  devolved  upon  and  assumed  by it pursuant to this act, the public and
   27  private employment relations board shall be deemed and held  to  consti-
   28  tute  the  continuation of the public employment relations board and the
   29  state employment relations board pertaining to the powers and  functions
   30  herein transferred.
   31    §  49. Completion of unfinished business. Any business or other matter
   32  undertaken or commenced by the public employment relations board or  the
   33  state  employment  relations  board  pertaining to or connected with the
   34  functions,  powers,  obligations  and  duties  hereby  transferred   and
   35  assigned to the public and private employment relations board, and pend-
   36  ing  on the effective date of this act may be conducted and completed by
   37  the public and private employment relations board in the same manner and
   38  under the same terms and conditions and  with  the  same  effect  as  if
   39  conducted  and completed by the former public employment relations board
   40  and state employment relations board.
   41    § 50. Continuance of rules and regulations.  All  rules,  regulations,
   42  acts,  orders,  determinations  and  decisions  of the public employment
   43  relations board and the state employment relations board  pertaining  to
   44  the  functions  and powers herein transferred and assigned to the public
   45  and private employment relations board, in force at  the  time  of  such
   46  transfer,  assignment,  assumption or devolution shall continue in force
   47  and effect as rules, regulations, acts, orders, determinations and deci-
   48  sions of the public and private employment relations  board  until  duly
   49  modified or abrogated by the board.
   50    § 51. Terms occurring in laws, contracts and other documents. Whenever
   51  the  public employment relations board or the state employment relations
   52  board is referred to or designated in any  law,  contract  or  documents
   53  pertaining  to  the  functions,  powers,  obligations  and duties hereby
   54  transferred and assigned to the public and private employment  relations
   55  board,  such  reference  or  designation shall be deemed to refer to the
   56  public and private employment relations board as created by this act.
       S. 1406                            99                            A. 2106
 
    1    § 52. Existing rights and remedies preserved.  No  existing  right  or
    2  remedy of any character shall be lost, impaired or affected by reason of
    3  this act.
    4    § 53. Pending actions and proceedings. No action or proceeding pending
    5  at  the  time when this act shall take effect, brought by or against the
    6  public employment relations board  or  the  state  employment  relations
    7  board relating to the function, power or duty transferred to or devolved
    8  upon the public and private employment relations board shall be affected
    9  by  this  act, but the same may be prosecuted or defended in the name of
   10  the board, and upon application to the court, the board shall be substi-
   11  tuted as a party.
   12    § 54. Transfer of appropriations heretofore made to the public employ-
   13  ment relations board and  the  state  employment  relations  board.  All
   14  appropriations or reappropriations for  the functions herein transferred
   15  heretofore  made to the public employment relations board or the depart-
   16  ment of labor on behalf of the  state  employment  relations  board,  or
   17  segregated  pursuant  to  law,  to the extent of remaining unexpended or
   18  unencumbered balances thereof,  whether  allocated  or  unallocated  and
   19  whether  obligated  or unobligated, are hereby transferred to the public
   20  and private employment relations board to the extent necessary to  carry
   21  out  the board's functions, powers and duties subject to the approval of
   22  the director of the budget for the same purposes  for  which  originally
   23  appropriated  or  reappropriated and shall be payable on vouchers certi-
   24  fied or approved by the chairperson of the public and private employment
   25  relations board on audit and warrant of the comptroller.
   26    § 55. Separability clause. If any clause, sentence, paragraph, section
   27  or part of this act shall be adjudged by any court of  competent  juris-
   28  diction to be invalid, such judgment shall not affect, impair or invali-
   29  date  the  remainder  thereof, but shall be confined in its operation to
   30  the clause,  sentence,  paragraph,  section  or  part  thereof  directly
   31  involved  in  the  controversy  in  which  such judgment shall have been
   32  rendered.
   33    § 56. This act shall take effect on the ninetieth day after  it  shall
   34  have become a law, except that effective immediately the commissioner of
   35  the  department  of  labor, the chair of the public employment relations
   36  board and the chair of the state employment relations board  are  hereby
   37  authorized  to  take such actions as are necessary and proper to prepare
   38  for an orderly transition of the functions, powers and duties as  herein
   39  provided.
 
   40                                   PART P
 
   41    Section  1.  Subdivision  15  of  section  3 of the alcoholic beverage
   42  control law is amended to read as follows:
   43    15. ["Liquor] Notwithstanding any law to the contrary,  "State  liquor
   44  authority",  "liquor  authority"  and "authority" mean the [state liquor
   45  authority] division of  alcoholic  beverage  control  in  the  executive
   46  department provided for in this chapter.
   47    §  2.  Section 10 of the alcoholic beverage control law, as amended by
   48  chapter 83 of the laws of 1995, is amended to read as follows:
   49    § 10. [State liquor authority] Division of alcoholic beverage control.
   50  There shall continue to be in the executive department [an]  a  division
   51  of alcoholic beverage control [division], the head of which shall be the
   52  [state  liquor authority which shall consist of three members, who shall
   53  be known as commissioners, all of whom shall be citizens  and  residents
   54  of  the  state]  director.    The state alcoholic beverage control board
       S. 1406                            100                           A. 2106
 
    1  created and appointed pursuant to chapter one hundred eighty of the laws
    2  of nineteen  hundred  thirty-three,  as  presently  constituted,  [shall
    3  continue  in  existence  and hereafter shall be] known and designated as
    4  the  state liquor authority is hereby abolished.  The terms "state alco-
    5  holic beverage control board", "state board", "liquor authority", "state
    6  liquor authority", [or] "authority", or "division" wherever occurring in
    7  any of the provisions of this chapter or of any other  law,  or  in  any
    8  official  books,  records, instruments, rules or papers, shall hereafter
    9  mean and refer to the [state liquor  authority]  division  of  alcoholic
   10  beverage control provided for in this section.
   11    §  3.  Section 11 of the alcoholic beverage control law, as amended by
   12  chapter 83 of the laws of 1995, is amended to read as follows:
   13    § 11. Appointment of [authority] the director of the division of alco-
   14  holic beverage control.  The [members of the authority] director of  the
   15  division  of alcoholic beverage control shall be appointed by the gover-
   16  nor by and with the advice and consent of the senate[. Not more than two
   17  members of the authority shall belong to the same political party.  The]
   18  except that the chairman of the state alcoholic beverage  control  board
   19  heretofore  appointed  and designated by the governor [and the remaining
   20  members of such  board  heretofore  appointed  by  the  governor]  shall
   21  continue  to  serve  as [chairman and members of the authority until the
   22  expiration of the respective terms for which they were appointed.   Upon
   23  the  expiration of such respective terms the successors of such chairman
   24  and members shall be appointed to serve for a term of three  years  each
   25  and until their successors have been appointed and qualified] the direc-
   26  tor  of  the division of alcoholic beverage control. Such director shall
   27  serve at the pleasure of the governor.
   28    § 4. Sections 12, 13 and 14 of the alcoholic beverage control law  are
   29  REPEALED.
   30    §  5.  Section 15 of the alcoholic beverage control law, as amended by
   31  chapter 83 of the laws of 1995, the  second  undesignated  paragraph  as
   32  amended  by  section  1 of part F of chapter 411 of the laws of 1999, is
   33  amended to read as follows:
   34    § 15. Officers; employees; offices. The [authority]  director  of  the
   35  division  of  alcoholic beverage control shall have power to appoint any
   36  necessary  deputies,  counsels,  assistants,  investigators,  and  other
   37  employees within the limits provided by appropriation.  Investigators so
   38  employed  by  the [Authority] division shall be deemed to be peace offi-
   39  cers for the purpose of  enforcing  the  provisions  of  [the  alcoholic
   40  beverage  control law] this chapter or judgements or orders obtained for
   41  violation thereof, with all the powers set forth in section 2.20 of  the
   42  criminal procedure law. The counsel, secretary, chief executive officer,
   43  assistant  chief executive officers, confidential secretaries to commis-
   44  sioners and deputies shall be in the exempt class of the civil  service.
   45  The  other  assistants,  investigators  and employees of the [authority]
   46  division shall all be in the [competitive] classified class of the civil
   47  service.  The [authority] division shall continue to have its  principal
   48  office  in  the  city of Albany, and may maintain a branch office in the
   49  cities of New York and Buffalo and such other  places  as  it  may  deem
   50  necessary.
   51    The  [authority]  division  shall  establish appropriate procedures to
   52  insure that hearing officers are shielded from ex  parte  communications
   53  with  alleged  violators and their attorneys and from other employees of
   54  the [authority] division and shall take such other  steps  as  it  shall
   55  deem  necessary  and proper to shield its judicial processes from unwar-
   56  ranted and inappropriate communications and attempts to influence.
       S. 1406                            101                           A. 2106
 
    1    § 6. Section 16 of the alcoholic beverage control law, as  amended  by
    2  chapter 731 of the laws of 1971, is amended to read as follows:
    3    § 16. Disqualification  of  [members and] employees of [authority] the
    4  division.  No [member of the authority or any] officer, deputy,  assist-
    5  ant,  inspector  or  employee  [thereof]  of the division shall have any
    6  interest, direct or indirect, either proprietary  or  by  means  of  any
    7  loan,  mortgage  or  lien, or in any other manner, in or on any premises
    8  where alcoholic beverages are manufactured or sold; nor shall he or  she
    9  have  any  interest,  direct  or  indirect,  in  any  business wholly or
   10  partially devoted to the manufacture, sale, transportation or storage of
   11  alcoholic beverages, or own any stock in any corporation which  has  any
   12  interest,  proprietary or otherwise, direct or indirect, in any premises
   13  where alcoholic beverages are manufactured or sold, or in  any  business
   14  wholly  or partially devoted to the manufacture, sale, transportation or
   15  storage of alcoholic beverages, or  receive  any  commission  or  profit
   16  whatsoever,  direct or indirect, from any person applying for or receiv-
   17  ing any license or permit provided for in  this  chapter,  or  hold  any
   18  other  public office in the state or in any political subdivision except
   19  upon the written permission of the [liquor authority]  director  of  the
   20  division  of  alcoholic  beverage control, such [member of the authority
   21  or] officer, deputy, assistant, inspector or employee thereof  may  hold
   22  the  public  office  of  notary public or member of a community board of
   23  education in the city school district of the city of New York. [Any one]
   24  Anyone who violates any of the  provisions  of  this  section  shall  be
   25  removed.
   26    §  7.  Section 17 of the alcoholic beverage control law, as amended by
   27  chapter 83 of the laws of 1995, subdivision 3 as amended by chapter  114
   28  of the laws of 2000, subdivision 8-a as added by chapter 383 of the laws
   29  of  1998,  subdivision 12 as amended by chapter 549 of the laws of 2001,
   30  subdivision 13 as added by chapter 403 of the laws  of  1999,  paragraph
   31  (f)  of  subdivision  13 as added and paragraph (g) of subdivision 13 as
   32  relettered by section 2 of part F of chapter 411 of the laws of 1999, is
   33  amended to read as follows:
   34    § 17. Powers of the [authority] division.   The  [authority]  division
   35  shall  have  the  following functions, powers and duties: 1. To issue or
   36  refuse to issue any license or permit provided for in this chapter.
   37    2. To limit in its discretion the number of licenses of each class  to
   38  be  issued within the state or any political subdivision thereof, and in
   39  connection therewith to prohibit the acceptance of applications for such
   40  class or classes of licenses which have been so limited.
   41    3. To revoke, cancel or suspend for cause any license or permit issued
   42  under this chapter and/or to impose a civil penalty  for  cause  against
   43  any  holder  of a license or permit issued pursuant to this chapter. Any
   44  civil penalty so imposed shall  not  exceed  the  sum  of  ten  thousand
   45  dollars  as  against  the holder of any retail permit issued pursuant to
   46  sections  ninety-five,  ninety-seven,  ninety-eight,  ninety-nine-d  and
   47  paragraph  f of subdivision one of section ninety-nine-b of this chapter
   48  and as against the holder of  any  retail  license  issued  pursuant  to
   49  sections fifty-two, fifty-three-a, fifty-four, fifty-four-a, fifty-five,
   50  fifty-five-a,   sixty-three,   sixty-four,  sixty-four-a,  sixty-four-b,
   51  sixty-four-c, seventy-nine, eighty-one and eighty-one-a of this chapter,
   52  and the sum of thirty thousand  dollars  as  against  the  holder  of  a
   53  license  issued  pursuant to sections fifty-three, seventy-six, seventy-
   54  six-a and seventy-eight of this chapter, provided that the civil penalty
   55  against the holder of a wholesale license  issued  pursuant  to  section
   56  fifty-three  of  this  chapter  shall not exceed the sum of ten thousand
       S. 1406                            102                           A. 2106
 
    1  dollars where that licensee violates provisions of this  chapter  during
    2  the  course of the sale of beer at retail to a person for consumption at
    3  home, and the sum of one hundred thousand dollars as against the  holder
    4  of  any  license  issued  pursuant  to sections fifty-one, sixty-one and
    5  sixty-two of this chapter. Any civil penalty  so  imposed  shall  be  in
    6  addition  to and separate and apart from the terms and provisions of the
    7  bond required pursuant to section one hundred twelve  of  this  chapter.
    8  In  the  event any civil penalty imposed by the division remains unpaid,
    9  in whole or in part, more than forty-five days after written demand  for
   10  payment has been sent by first class mail to the address of the licensed
   11  premises,  a notice of impending default judgment shall be sent by first
   12  class mail to the licensed premises and by first class mail to the  last
   13  known  home  address  of  the  person who signed the most recent license
   14  application. The notice of impending default judgment shall  advise  the
   15  licensee:  (a) that a civil penalty was imposed on the licensee; (b) the
   16  date the penalty was imposed; (c) the amount of the civil  penalty;  (d)
   17  the  amount  of  the civil penalty that remains unpaid as of the date of
   18  the notice; (e) the violations for which the civil penalty was  imposed;
   19  and  (f) that a judgment by default will be entered in the supreme court
   20  of the county in which the licensed premises are located, or other court
   21  of civil jurisdiction or any other place provided for the entry of civil
   22  judgments within the state of New York unless the division receives full
   23  payment of all civil penalties due within twenty days of the date of the
   24  notice of impending default judgment. If full  payment  shall  not  have
   25  been  received  by  the  division  within  thirty days of mailing of the
   26  notice of impending default judgment, the division shall proceed to have
   27  a judgment entered. A judgment  entered  pursuant  to  this  subdivision
   28  shall  remain  in  full force and effect for eight years notwithstanding
   29  any other provision of law.
   30    4. To remove any employee of the [authority] division for cause, after
   31  giving such employee a copy of the charges against him or her  in  writ-
   32  ing, and an opportunity to be heard thereon. Any action taken under this
   33  subdivision shall be subject to and in accordance with the civil service
   34  law.
   35    5.  To  fix  by  rule the standards of manufacture and fermentation in
   36  order to insure the use of proper ingredients and methods in  the  manu-
   37  facture of alcoholic beverages to be sold or consumed in the state.
   38    6.  To  hold  hearings,  subpoena  witnesses, compel their attendance,
   39  administer oaths, to examine any person under  oath  and  in  connection
   40  therewith  to  require the production of any books or papers relative to
   41  the inquiry. A subpoena issued under this section shall be regulated  by
   42  the civil practice law and rules.
   43    7.  To  prohibit,  at  any  time of public emergency, without previous
   44  notice or advertisement, the sale of any or all alcoholic beverages  for
   45  and during the period of such emergency.
   46    8. To make an annual report to the governor and the legislature of its
   47  activities for the preceding year.
   48    8-a.  On and after January first, two thousand the report provided for
   49  in subdivision eight of this section shall include an evaluation of  the
   50  effectiveness of the prohibition on the sale of alcohol to persons under
   51  the  age of twenty-one as provided in section sixty-five-b of this chap-
   52  ter with particular emphasis on the provisions of subdivisions one, two,
   53  three, four and  five  of  section  sixty-five-b,  subdivision  five  of
   54  section  one  hundred nineteen and subdivision six of section sixty-five
   55  of this chapter, paragraph (b) of subdivision seven of section 170.55 of
       S. 1406                            103                           A. 2106
 
    1  the criminal procedure law and subdivision (f) of section 19.07  of  the
    2  mental hygiene law.
    3    9.  The  powers  provided  in  this  section  may  be delegated by the
    4  [authority to the chairman, or] director of the  division  of  alcoholic
    5  beverage  control  to  such other officers or employees as may be desig-
    6  nated by [the chairman] such director.
    7    10. To appoint such advisory groups and committees as it deems  neces-
    8  sary  to provide assistance to the [authority] division to carry out the
    9  purposes and objectives of this chapter.
   10    11. Upon receipt of a resolution adopted by a board of supervisors  or
   11  a  county  legislative  body  requesting further restriction of hours of
   12  sale of alcoholic beverages within such  county,  and  upon  notice  and
   13  hearing  within  such county, to approve or disapprove such hours within
   14  such county.
   15    12. To develop and establish minimum  criteria  for  alcohol  training
   16  awareness programs which may be given and administered by schools; other
   17  entities  including  trade  associations whose members are engaged in or
   18  involved in  the  retail  sale  of  alcoholic  beverages;  national  and
   19  regional  franchisors  who  have granted at least five franchises in the
   20  state which are  licensed  to  sell  beer  at  retail  for  off-premises
   21  consumption;  licensees authorized to sell alcoholic beverages at retail
   22  for off-premises consumption operating five or more  licensed  premises;
   23  and  persons  interested, whether as an individual proprietor or partner
   24  or officer or member of a limited liability company,  in  five  or  more
   25  licensees authorized to sell alcoholic beverages at retail for off-prem-
   26  ises  consumption.  The [authority] division shall provide for the issu-
   27  ance of certificates of  approval  to  all  certified  alcohol  training
   28  awareness  programs.  Certificates  of  approval  may  be revoked by the
   29  [authority] division for failure to adhere to  the  [authority's]  divi-
   30  sion's  rules  and  regulations. Such rules and regulations shall afford
   31  those who have been issued a certificate of approval an opportunity  for
   32  a  hearing prior to any determination of whether such certificate should
   33  be revoked.
   34    No licensee shall be required to apply for  any  such  certificate  or
   35  renewal  certificate  and  the licensee may voluntarily surrender such a
   36  certificate or renewal certificate at any time. A fee in the  amount  of
   37  nine hundred dollars shall be paid to the [authority] division with each
   38  application  for  a  certificate of approval or renewal certificate. The
   39  [authority] division shall promptly refund  such  fee  to  an  applicant
   40  whose  application  was denied. Each certificate of approval and renewal
   41  thereof shall be issued for a period of three years. To  effectuate  the
   42  provisions of this subdivision, the [authority] division is empowered to
   43  require  in connection with an application the submission of such infor-
   44  mation as the [authority] division may direct;  to  prescribe  forms  of
   45  applications  and  of all reports which it deems necessary to be made by
   46  any applicant or  certificate  holder;  to  conduct  investigations;  to
   47  require  the  maintenance  of  such books and records as the [authority]
   48  division may direct; to revoke, cancel, or suspend for cause any certif-
   49  icate provided for in this subdivision. Each entity authorized  to  give
   50  and administer an alcohol training awareness program shall issue certif-
   51  icates  of  completion  to  all licensees and employees who successfully
   52  complete such an approved alcohol training awareness program. Such enti-
   53  ty shall regularly transmit  to  the  [authority]  division  the  names,
   54  addresses  and dates of attendance of all the licensees and employees of
   55  licensees who successfully complete an approved alcohol training  aware-
   56  ness program.  Such transmittal shall be in a form and manner prescribed
       S. 1406                            104                           A. 2106
 
    1  by the [authority] division.  The [authority] division shall adopt rules
    2  and  regulations  to  effectuate  the  provisions  of  this subdivision,
    3  including the minimum requirements  for  the  curriculum  of  each  such
    4  training  program  and the regular ongoing training of employees holding
    5  certificates of completion or renewal certificates. Such rules and regu-
    6  lations shall include the minimum requirements for a separate curriculum
    7  for licensees and their employees authorized to sell alcoholic beverages
    8  at retail for off-premises consumption, minimum requirements for a sepa-
    9  rate curriculum for licensees and their  employees  authorized  to  sell
   10  alcoholic  beverages at retail for on-premises consumption, and the form
   11  of a certificate of completion  or  renewal  thereof  to  be  issued  in
   12  respect  to  each  such  type of program. A certificate of completion or
   13  renewal thereof issued by an entity authorized to give and administer an
   14  alcohol training awareness  program  pursuant  to  this  subdivision  to
   15  licensees  and their employees authorized to sell alcoholic beverages at
   16  retail for off-premises consumption shall not be invalidated by a change
   17  of employment to another such licensee. A certificate of  completion  or
   18  renewal thereof issued by an entity authorized to give and administer an
   19  alcohol  training  awareness  program  pursuant  to  this subdivision to
   20  licensees and their employees authorized to sell alcoholic beverages  at
   21  retail  for on-premises consumption shall not be invalidated by a change
   22  of employment to another such licensee.
   23    13. To study and report to the governor and the legislature  [bi-enni-
   24  ally] biennially on or before February first of each year concerning:
   25    (a)  recommendations to reduce the number and type of licenses, and to
   26  establish a uniform, statewide schedule of fees, such recommendations to
   27  include the development of a master application form for  all  licenses,
   28  with  specific  exhibits required for specific licenses, as appropriate,
   29  as well as recommendations on a non-refundable application fee set at  a
   30  level which will cover the cost of the review and which would be applied
   31  against the first year license fee if the application is granted;
   32    (b) recommendations to simplify license renewal procedures;
   33    (c)  recommendations  to streamline the processing of applications and
   34  to eliminate duplication of reviews,  such  recommendations  to  include
   35  uniform  standards  for application review and decision which shall seek
   36  to assure that the review is as objective as possible and to narrow  the
   37  discretion  of  the  [authority] division or of any reviewer employed by
   38  the [authority] division;
   39    (d) the extent to which quality of life issues, such as  noise  level,
   40  vehicular  traffic  and  parking  are considered in licensing decisions,
   41  particularly as such issues pertain to proceedings pursuant to  subdivi-
   42  sion seven of section sixty-four of this chapter;
   43    (e)  recommendations  to improve enforcement methodologies in order to
   44  protect the health and safety of residents of  communities  experiencing
   45  persistent problems in the operation of retail establishments;
   46    (f)  recommendations  concerning  the  addition  of  field enforcement
   47  personnel and the ratios of such  field  enforcement  personnel  to  the
   48  total  numbers of licensees that in the view of the [authority] division
   49  would be appropriate to insure compliance with the law. Such study shall
   50  provide a detailed analysis of the costs and projected  revenues  to  be
   51  obtained from the addition of such field enforcement personnel; and
   52    (g)  such other observations and recommendations concerning the activ-
   53  ities of the [authority] division as will improve its effectiveness  and
   54  efficiency  including  the  utilization  of  on-line services to provide
   55  information on a fee-for-service basis.
       S. 1406                            105                           A. 2106
 
    1    14. To exercise the powers and perform the duties in relation  to  the
    2  administration  of  the  division as are not specifically vested by this
    3  chapter in the division.
    4    15.  To  keep  records  in such form as he or she may prescribe of all
    5  licenses and permits issued and revoked within the state;  such  records
    6  shall  be  so kept as to provide ready information as to the identity of
    7  all licensees including the names  of  the  officers  and  directors  of
    8  corporate  licensees  and  the  location  of  all licensed premises. The
    9  director may, with the approval of  the  commissioner  of  taxation  and
   10  finance,  contract  to  furnish  copies  of  the records of licenses and
   11  permits of each class and type issued within the state or any  political
   12  subdivision thereof, for any license or permit year or term of years not
   13  exceeding five years.
   14    16.  To  inspect  or  provide for the inspection of any premises where
   15  alcoholic beverages are manufactured or sold.
   16    17. To prescribe forms of applications for licenses and permits  under
   17  this chapter.
   18    §  8.  Sections  18  and  19 of the alcoholic beverage control law are
   19  REPEALED.
   20    § 9. Paragraph (c) of subdivision 1 of section 169  of  the  executive
   21  law,  as  amended by chapter 634 of the laws of 1998, is amended to read
   22  as follows:
   23    (c) commissioner of agriculture and markets, commissioner of  alcohol-
   24  ism  and  substance  abuse  services, adjutant general, commissioner and
   25  president of state civil service commission,  commissioner  of  economic
   26  development,  chair  of  the  energy research and development authority,
   27  executive director of the board of real property services, president  of
   28  higher  education  services corporation, commissioner of motor vehicles,
   29  member-chair of board of parole, director of probation and  correctional
   30  alternatives,  chair  of public employment relations board, secretary of
   31  state, chair of the state racing and wagering  board,  [commissioner  of
   32  alcoholism  and  substance  abuse  services,]  executive director of the
   33  housing finance agency, commissioner of housing and  community  renewal,
   34  executive director of state insurance fund, [commissioner-chair of state
   35  liquor  authority,]  director  of  the  division  of  alcoholic beverage
   36  control, chair of the workers' compensation board;
   37    § 10. Paragraph (f) of subdivision 1 of section 169 of  the  executive
   38  law, as amended by chapter 83 of the laws of 1995, is amended to read as
   39  follows:
   40    (f)  executive  director  of adirondack park agency, [commissioners of
   41  the state liquor authority,] commissioners of the  state  civil  service
   42  commission,  members  of  state commission of correction, members of the
   43  employment relations board, members of crime victims board,  members  of
   44  unemployment insurance appeal board, and members of the workers' compen-
   45  sation board.
   46    §  11.  Section  270 of the executive law, as amended by chapter 83 of
   47  the laws of 1995, is amended to read as follows:
   48    § 270. Division of alcoholic beverage control[; state liquor  authori-
   49  ty].  The  head of the division of alcoholic beverage control [division]
   50  shall be the [state  liquor  authority  which  shall  consist  of  three
   51  members,  who shall be known as commissioners, who shall be appointed by
   52  the governor, by and with the advice and consent of the senate, and  one
   53  of whom shall be designated as chairman by the governor.
   54    Not  more  than two members of the state liquor authority shall belong
   55  to the same political party. All of said members shall be  citizens  and
   56  residents  of  the state. Such members shall be appointed to serve for a
       S. 1406                            106                           A. 2106
 
    1  term of three years each and until their successors have been  appointed
    2  and qualified] director of the division of alcoholic beverage control.
    3    §  12.  Sections  271,  272,  273  and  274  of  the executive law are
    4  REPEALED.
    5    § 13. Transfer of records. All  books,  papers  and  property  of  the
    6  former  state liquor authority with respect to the functions, powers and
    7  duties transferred by sections one through twenty of this act are to  be
    8  delivered  to  the division of alcoholic beverage control, at such place
    9  and time, in such manner as the director of the  division  of  alcoholic
   10  beverage control require.
   11    § 14. Continuity of the former state liquor authority. For the purpose
   12  of  succession  to  all functions, powers, duties and obligations of the
   13  former state liquor authority  assumed  by  the  division  of  alcoholic
   14  beverage  control  which  shall  continue  the  operation of the various
   15  programs transferred pursuant to sections one through twenty of this act
   16  as if operated by the former state liquor authority.
   17    § 15. Completion of unfinished business. Any business or other  matter
   18  undertaken  or commenced by the former state liquor authority pertaining
   19  to or connected with the functions, powers, duties and obligations here-
   20  by transferred and assigned  to  the  successor  division  of  alcoholic
   21  beverage control and pending on the effective date of this act, shall be
   22  conducted  and completed by the successor division of alcoholic beverage
   23  control in the same manner and under the same terms and  conditions  and
   24  with  the  same effect as if conducted and completed by the former state
   25  liquor authority.
   26    § 16. Continuation of rules and regulations. All  rules,  regulations,
   27  acts,  orders,  determinations, and decisions of the former state liquor
   28  authority in force at the time of such transfer  and  assumption,  shall
   29  continue in force and effect as rules, regulations, acts, orders, deter-
   30  minations  and  decisions  of the division of alcoholic beverage control
   31  until duly modified or abrogated by the  director  of  the  division  of
   32  alcoholic beverage control.
   33    §  17.  Existing  rights  and remedies preserved. No existing right or
   34  remedy of any character shall be lost, impaired or affected by reason of
   35  sections one through twenty of this act.
   36    § 18. Pending actions or proceedings. No action or proceeding  pending
   37  at  the  time  when  sections  one through twenty of this act shall take
   38  effect relating to the functions, powers and duties of the former  state
   39  liquor  authority transferred pursuant to sections one through twenty of
   40  this act, brought by or against the former state liquor authority or the
   41  commissioners thereof shall be affected by any provision of sections one
   42  through twenty of this act, but the same may be prosecuted  or  defended
   43  in  the name of the successor division of alcoholic beverage control. In
   44  all such actions and proceedings, the successor, director of  the  divi-
   45  sion of alcoholic beverage control, upon application to the court, shall
   46  be substituted as a party.
   47    §  19.  Transfer of assets and liabilities. All assets and liabilities
   48  of the former state liquor  authority  are  hereby  transferred  to  and
   49  assumed by the division of alcoholic beverage control.
   50    § 20. Notwithstanding any inconsistent provision of the state adminis-
   51  trative  procedure  act,  the  division of alcoholic beverage control to
   52  which the functions, powers  and  duties  of  the  former  state  liquor
   53  authority  are transferred shall be authorized to promulgate regulations
   54  on an emergency basis to ensure the implementation of this  section  and
   55  sections one through nineteen of this act.
       S. 1406                            107                           A. 2106
 
    1    §  21. Severability clause. If any clause, sentence, paragraph, subdi-
    2  vision, section or part of this act shall be adjudged by  any  court  of
    3  competent  jurisdiction  to  be invalid, such judgment shall not affect,
    4  impair, or invalidate the remainder thereof, but shall  be  confined  in
    5  its  operation  to the clause, sentence, paragraph, subdivision, section
    6  or part thereof directly involved in the controversy in which such judg-
    7  ment shall have been rendered. It is hereby declared to be the intent of
    8  the legislature that this act would  have  been  enacted  even  if  such
    9  invalid provisions had not been included herein.
   10    § 22. This act shall take effect April 1, 2003.
         REPEAL NOTE.--Sections 12, 13, 14, 18 and 19 of the alcoholic beverage
       control  law  and  sections  271, 272, 273 and 274 of the executive law,
       proposed to be repealed by this act, relate to the duties and  responsi-
       bilities of the state liquor authority.
 
   11                                   PART Q
 
   12    Section 1. Subdivision 1 of section 60.35 of the penal law, as amended
   13  by  section 1 of part L of chapter 57 of the laws of 2000, is amended to
   14  read as follows:
   15    1. Except as provided in section eighteen hundred nine of the  vehicle
   16  and  traffic law and section 27.12 of the parks, recreation and historic
   17  preservation law, whenever proceedings in an administrative tribunal  or
   18  a  court  of this state result in a conviction for a felony, a misdemea-
   19  nor, or a violation, as these terms are defined in section 10.00 of this
   20  chapter, there shall be levied at sentencing a mandatory surcharge and a
   21  crime victim assistance fee in addition  to  any  sentence  required  or
   22  permitted by law, in accordance with the following schedule:
   23    (a)  a person convicted of a felony shall pay a mandatory surcharge of
   24  two hundred fifty dollars and a crime victim  assistance  fee  of  [ten]
   25  twenty dollars;
   26    (b)  a  person  convicted  of  a  misdemeanor  shall  pay  a mandatory
   27  surcharge of one hundred [ten] forty dollars and a crime victim  assist-
   28  ance fee of [ten] twenty dollars;
   29    (c)  a person convicted of a violation shall pay a mandatory surcharge
   30  of [fifty] seventy-five dollars and a crime  victim  assistance  fee  of
   31  [ten] twenty dollars.
   32    §  2. Subdivision 1 of section 1809 of the vehicle and traffic law, as
   33  amended by section 2 of part L of chapter 57 of the  laws  of  2000,  is
   34  amended to read as follows:
   35    1.  Whenever  proceedings  in an administrative tribunal or a court of
   36  this state result in a conviction for an offense under this chapter or a
   37  traffic infraction under this chapter, or a local law,  ordinance,  rule
   38  or  regulation  adopted  pursuant  to this chapter, other than a traffic
   39  infraction involving standing, stopping, or  parking  or  violations  by
   40  pedestrians or bicyclists, or other than an adjudication of liability of
   41  an  owner  for  a violation of subdivision (d) of section eleven hundred
   42  eleven of  this  chapter  in  accordance  with  section  eleven  hundred
   43  eleven-a  of  this chapter, there shall be levied a crime victim assist-
   44  ance fee and a mandatory surcharge, in addition to any sentence required
   45  or permitted by law, in accordance with the following schedule:
   46    (a) Whenever proceedings in an administrative tribunal or a  court  of
   47  this  state  result in a conviction for a traffic infraction pursuant to
   48  article nine of this chapter, there  shall  be  levied  a  crime  victim
   49  assistance  fee in the amount of five dollars and a mandatory surcharge,
       S. 1406                            108                           A. 2106
 
    1  in addition to any sentence required or permitted by law, in the  amount
    2  of [twenty] twenty-five dollars.
    3    (b)  Whenever  proceedings in an administrative tribunal or a court of
    4  this state result in a conviction for a misdemeanor or  felony  pursuant
    5  to  section  eleven  hundred  ninety-two of this chapter, there shall be
    6  levied, in addition to any sentence required  or  permitted  by  law,  a
    7  crime  victim assistance fee in the amount of [ten] twenty dollars and a
    8  mandatory surcharge in accordance with the following schedule:
    9    (i) a person convicted of a felony shall pay a mandatory surcharge  of
   10  two hundred fifty dollars;
   11    (ii)  a  person  convicted  of  a  misdemeanor  shall  pay a mandatory
   12  surcharge of one hundred [ten] forty dollars.
   13    (c) Whenever proceedings in an administrative tribunal or a  court  of
   14  this  state  result  in  a  conviction for an offense under this chapter
   15  other than a crime pursuant to section eleven hundred ninety-two of this
   16  chapter, or a traffic infraction under this chapter,  or  a  local  law,
   17  ordinance,  rule  or  regulation adopted pursuant to this chapter, other
   18  than a traffic infraction involving standing, stopping,  or  parking  or
   19  violations  by  pedestrians or bicyclists, or other than an adjudication
   20  of liability of an owner for a violation of subdivision (d)  of  section
   21  eleven  hundred eleven of this chapter in accordance with section eleven
   22  hundred eleven-a of this chapter or other than an infraction pursuant to
   23  article nine of this chapter or other than an adjudication of  liability
   24  of  an  owner for a violation of toll collection regulations pursuant to
   25  section two thousand nine hundred eighty-five of the public  authorities
   26  law  or  sections  sixteen-a,  sixteen-b  and sixteen-c of chapter seven
   27  hundred seventy-four of the laws of nineteen hundred fifty, there  shall
   28  be  levied  a  crime victim assistance fee in the amount of five dollars
   29  and a mandatory surcharge, in  addition  to  any  sentence  required  or
   30  permitted by law, in the amount of [thirty] forty-five dollars.
   31    §  3. Subdivision 2 of section 1809 of the vehicle and traffic law, as
   32  amended by chapter 55 of the  laws  of  1992,  is  amended  to  read  as
   33  follows:
   34    2.  Where  a person is convicted of two or more such crimes or traffic
   35  infractions committed through a single act or omission,  or  through  an
   36  act or omission which in itself constituted one of the crimes or traffic
   37  infractions  and  also was a material element of the other, the court or
   38  administrative tribunal shall impose a crime victim assistance fee and a
   39  mandatory surcharge mandated by subdivision one of this section for each
   40  such conviction; provided however, that in  no  event  shall  the  total
   41  amount  of  such  crime  victim assistance fees and mandatory surcharges
   42  imposed pursuant to paragraph (a) or (c)  of  subdivision  one  of  this
   43  section exceed [fifty] one hundred dollars.
   44    §  4.  Subdivision  (p)  of  section 406 of chapter 166 of the laws of
   45  1991, amending the tax law and other laws relating to taxes, as  amended
   46  by chapter 95 of the laws of 2001, is amended to read as follows:
   47    (p) The amendments to section 1809 of the vehicle and traffic law made
   48  by sections three hundred thirty-seven and three hundred thirty-eight of
   49  this  act  shall not apply to any offense committed prior to such effec-
   50  tive date; provided, further, that section three  hundred  forty-one  of
   51  this act shall take effect immediately and shall expire November 1, 1993
   52  at  which  time  it  shall  be  deemed  repealed; sections three hundred
   53  forty-five and three hundred forty-six of this  act  shall  take  effect
   54  July  1,  1991;  sections three hundred fifty-five, three hundred fifty-
   55  six, three hundred fifty-seven and three hundred fifty-nine of this  act
   56  shall  take  effect immediately and shall expire June 30, 1995 and shall
       S. 1406                            109                           A. 2106
 
    1  revert to and be read as if this act had not been enacted; section three
    2  hundred fifty-eight of this act shall take effect immediately and  shall
    3  expire  June 30, 1998 and shall revert to and be read as if this act had
    4  not been enacted; section three hundred sixty-four through three hundred
    5  sixty-seven  of  this  act  shall apply to claims filed on or after such
    6  effective date; sections three hundred sixty-nine, three hundred  seven-
    7  ty-two,  three  hundred seventy-three, three hundred seventy-four, three
    8  hundred seventy-five and three hundred seventy-six  of  this  act  shall
    9  remain  in  effect  until  November 1, 2003, at which time they shall be
   10  deemed  repealed;  provided,  however,  that  the  mandatory   surcharge
   11  provided  in  section three hundred seventy-four of this act shall apply
   12  to parking violations occurring on or after  said  effective  date;  and
   13  provided  further that the amendments made to section 235 of the vehicle
   14  and traffic law by section three hundred seventy-two of  this  act,  the
   15  amendments  made  to  section  1809  of  the  vehicle and traffic law by
   16  sections three hundred thirty-seven and three  hundred  thirty-eight  of
   17  this  act  shall  expire  on November 1, 2005 and the amendments made to
   18  section 215-a of the labor law by section three hundred seventy-five  of
   19  this  act  shall  expire  on  November  1,  2003  and upon such date the
   20  provisions of such subdivisions and sections shall revert to and be read
   21  as if the provisions of this act had not been enacted; the amendments to
   22  subdivisions 2 and 3 of section 400.05 of the penal law made by sections
   23  three hundred seventy-seven and three hundred seventy-eight of this  act
   24  shall  expire  on July 1, 1992 and upon such date the provisions of such
   25  subdivisions shall revert and shall be read as if the provisions of this
   26  act had not been enacted; the state board of law  examiners  shall  take
   27  such  action  as is necessary to assure that all applicants for examina-
   28  tion for admission to practice as an  attorney  and  counsellor  at  law
   29  shall  pay  the  increased examination fee provided for by the amendment
   30  made to section 465 of the judiciary law by section three hundred eighty
   31  of this act for any examination given on or after the effective date  of
   32  this act notwithstanding that an applicant for such examination may have
   33  prepaid  a lesser fee for such examination as required by the provisions
   34  of such section 465 as of the date prior to the effective date  of  this
   35  act; the provisions of section 306-a of the civil practice law and rules
   36  as  added by section three hundred eighty-one of this act shall apply to
   37  all actions pending on or commenced  on  or  after  September  1,  1991,
   38  provided, however, that for the purposes of this section service of such
   39  summons  made  prior to such date shall be deemed to have been completed
   40  on September 1, 1991; the provisions of section  three  hundred  eighty-
   41  three  of this act shall apply to all money deposited in connection with
   42  a cash bail or a partially secured bail bond on or after such  effective
   43  date; and the provisions of sections three hundred eighty-four and three
   44  hundred  eighty-five  of  this  act  shall  apply  only  to jury service
   45  commenced during a judicial term beginning on  or  after  the  effective
   46  date of this act; provided, however, that nothing contained herein shall
   47  be deemed to affect the application, qualification, expiration or repeal
   48  of  any  provision  of  law  amended by any section of this act and such
   49  provisions shall be applied or qualified or shall expire  or  be  deemed
   50  repealed  in the same manner, to the same extent and on the same date as
   51  the case may be as otherwise provided by law;
   52    § 5. This act shall take effect on the one hundred eightieth day after
   53  it shall have become a law; provided, however, that the amendments  made
   54  to  subdivisions  1 and 2 of section 1809 of the vehicle and traffic law
   55  by sections two and three of this act shall not  affect  the  expiration
       S. 1406                            110                           A. 2106
 
    1  and  reversion  of  such subdivisions and shall be deemed expired there-
    2  with.
 
    3                                   PART R
 
    4    Section 1. Subdivision 2-a of section 190.30 of the criminal procedure
    5  law,  as  amended by chapter 453 of the laws of 1999, is amended to read
    6  as follows:
    7    2-a. When the electronic transmission of a certified report, or certi-
    8  fied copy thereof, of the kind described in subdivision two  or  three-a
    9  of  this  section  or  a  sworn  statement  or copy thereof, of the kind
   10  described in subdivision three or four-a of this section  results  in  a
   11  written  document,  such  written document may be received in such grand
   12  jury proceeding provided that: (a) a transmittal memorandum completed by
   13  the person sending the report contains a certification that  the  report
   14  has  not  been  altered  and  a description of the report specifying the
   15  number of pages; and (b) the  person  who  receives  the  electronically
   16  transmitted  document certifies that such document and transmittal memo-
   17  randum were so received; and (c) a certified report or a certified  copy
   18  or  sworn statement or sworn copy thereof is filed with the court within
   19  twenty days following arraignment upon the  indictment;  and  (d)  where
   20  such  written document is a sworn statement or sworn copy thereof of the
   21  kind described in subdivision three or  four-a  of  this  section,  such
   22  sworn  statement or sworn copy thereof is also provided to the defendant
   23  or his counsel within twenty days following arraignment upon the indict-
   24  ment.
   25    § 2. Section 190.30 of the criminal procedure law is amended by adding
   26  a new subdivision 4-a to read as follows:
   27    4-a. A written or oral statement, under oath, by a police officer,  as
   28  that  term is defined in subdivision thirty-four of section 1.20 of this
   29  chapter, relating facts concerning an offense,  other  than  an  offense
   30  defined  in  article  one  hundred  twenty-five of the penal law, may be
   31  received in evidence in a grand jury proceeding as the testimony of such
   32  officer, provided that the facts related therein must be  stated  to  be
   33  within  the  officer's personal knowledge or to have occurred within his
   34  or her immediate presence and, provided further, that the statement  may
   35  not  be  admitted  when  an  adversarial examination of such officer was
   36  previously conducted with respect to such offense  pursuant  to  section
   37  180.60  of  this  chapter,  unless  a  transcript of that examination is
   38  admitted.
   39    § 3. Subdivision 5 of section 190.30 of the criminal procedure law, as
   40  amended by chapter 804 of the laws  of  1984,  is  amended  to  read  as
   41  follows:
   42    5. Nothing in subdivisions two, three [or], three-a, four or four-a of
   43  this  section shall be construed to limit the power of the grand jury to
   44  cause any person to be called as a witness pursuant to subdivision three
   45  of section 190.50.
   46    § 4. This act shall take effect November 1, 2003.
 
   47                                   PART S
 
   48    Section 1. Section 259-j of the executive law, as amended by chapter 1
   49  of the laws of 1998, is amended to read as follows:
   50    § 259-j. [Discharge] Merit termination of sentence and discharge  from
   51  presumptive release, parole and conditional release.  1. The division of
   52  parole  may  grant  to  any  person a merit termination of sentence from
       S. 1406                            111                           A. 2106
 
    1  presumptive release, parole or from conditional  release  prior  to  the
    2  expiration  of  the full term or maximum term, provided it is determined
    3  by the division of parole that such merit termination  is  in  the  best
    4  interests  of  society, such person is not required to register as a sex
    5  offender pursuant to article six-c  of  the  correction  law,  and  such
    6  person is not on presumptive release, parole or conditional release from
    7  a term of imprisonment imposed for any of the following offenses, or for
    8  an attempt to commit any of the following offenses:
    9    (a)  a violent felony offense as defined in section 70.02 of the penal
   10  law;
   11    (b) murder in the first degree or murder in the second degree;
   12    (c) an offense defined in article one hundred thirty of the penal law;
   13    (d) unlawful imprisonment in the first degree, kidnapping in the first
   14  degree, or kidnapping in the second degree, in which the victim is  less
   15  than  seventeen  years  old  and  the  offender is not the parent of the
   16  victim;
   17    (e) an offense defined in article two hundred thirty of the penal  law
   18  involving the prostitution of a person less than nineteen years old;
   19    (f)  disseminating  indecent material to minors in the first degree or
   20  disseminating indecent material to minors in the second degree;
   21    (g) incest;
   22    (h) an offense defined in article two hundred sixty-three of the penal
   23  law;
   24    (i) a hate crime as defined in section 485.05 of the penal law; or
   25    (j) an offense defined in article four hundred  ninety  of  the  penal
   26  law.
   27    2.  A  merit  termination granted by the division of parole under this
   28  section shall constitute a termination of the sentence with  respect  to
   29  which  it was granted. No such merit termination shall be granted unless
   30  the division of parole is satisfied that termination  of  sentence  from
   31  presumptive  release,  parole or from conditional release is in the best
   32  interest of society, and that the parolee or releasee, otherwise  finan-
   33  cially  able  to  comply with an order of restitution and the payment of
   34  any mandatory surcharge previously  imposed  by  a  court  of  competent
   35  jurisdiction, has made a good faith effort to comply therewith.
   36    3.  A  merit termination of sentence may be granted after two years of
   37  presumptive release or parole to a person serving a sentence for a class
   38  A felony offense as defined in article two hundred twenty of  the  penal
   39  law.  A merit termination of sentence may be granted to all other eligi-
   40  ble persons after one year of presumptive release, parole or conditional
   41  release.
   42    4. Except where a determinate sentence or a sentence  with  a  maximum
   43  term  of  life imprisonment was imposed for a felony other than a felony
   44  defined in article two hundred twenty of the penal law, if the board  of
   45  parole is satisfied that an absolute discharge from presumptive release,
   46  parole  or [from] conditional release is in the best interests of socie-
   47  ty, the board may grant such a discharge prior to the expiration of  the
   48  full  term  or  maximum  term  to  any  person who has been on unrevoked
   49  presumptive release, parole or conditional release for  at  least  three
   50  consecutive years.  A discharge granted under this section shall consti-
   51  tute a termination of the sentence with respect to which it was granted.
   52  No  such discharge shall be granted unless the board of parole is satis-
   53  fied that the parolee or releasee, otherwise financially able to  comply
   54  with  an order of restitution and the payment of any mandatory surcharge
   55  previously imposed by a court of competent jurisdiction, has made a good
   56  faith effort to comply therewith.
       S. 1406                            112                           A. 2106
 
    1    5. The chairman of the board of  parole  shall  promulgate  rules  and
    2  regulations governing the issuance of merit terminations of sentence and
    3  discharges  from  presumptive release, parole and conditional release to
    4  assure that such terminations and discharges are consistent with  public
    5  safety.
    6    §  2.  This  act  shall take effect immediately and shall be deemed to
    7  have been in full force and effect on and after April 1, 2003; provided,
    8  however, that the amendments to section 259-j of the executive law  made
    9  by  section  one  of this act shall not affect the expiration of certain
   10  provisions of such section  259-j,  as  provided  in  subdivision  d  of
   11  section 74 of chapter 3 of the laws of 1995.
 
   12                                   PART T
 
   13    Section  1. Paragraph (a) of subdivision 2 of section 151 of the work-
   14  ers' compensation law, as amended by chapter 309 of the laws of 1996, is
   15  amended to read as follows:
   16    (a) The chair and department of audit and control annually as soon  as
   17  practicable  after  April  first  shall  ascertain  the  total amount of
   18  expenses, including in addition to the direct costs of personal service,
   19  the cost of maintenance and operation, the cost of  retirement  contrib-
   20  utions  made and workers' compensation premiums paid by the state for or
   21  on account of personnel, rentals for space occupied in  state  owned  or
   22  state  leased  buildings, such additional sum as may be certified to the
   23  chair and the department of audit and control as  a  reasonable  compen-
   24  sation  for  services  rendered  by  the  department of law and expenses
   25  incurred by such department, for transfer into the training  and  educa-
   26  tion  program on occupational safety and health fund created pursuant to
   27  chapter eight hundred eighty-six of the laws of nineteen hundred  eight-
   28  y-five  and section ninety-seven-c of the state finance law, for the New
   29  York state occupational health clinics network, for  the  department  of
   30  labor  occupational  safety and health program and for transfer into the
   31  uninsured employers' fund pursuant to subdivision two of  section  twen-
   32  ty-six-a  of  this  chapter,  and  all  other  direct or indirect costs,
   33  incurred by the board during the preceding  fiscal  year  in  connection
   34  with the administration of this chapter, except those expenses for which
   35  an  assessment  is authorized pursuant to paragraphs f and g of subdivi-
   36  sion five of section fifty and sections  two  hundred  twenty-eight  and
   37  three hundred twenty-five of this chapter.
   38    §  2.  Paragraph  f  of  subdivision  5  of section 50 of the workers'
   39  compensation law, as amended by chapter 467 of  the  laws  of  1988,  is
   40  amended to read as follows:
   41    f.  Whenever  the  chairman  shall determine that the compensation and
   42  benefits provided by this chapter may be unpaid by reason of the default
   43  of an insolvent private self-insured employer, the  chairman  shall  pay
   44  such compensation and benefits [from administration expenses as provided
   45  in  section  one  hundred  fifty-one  of  this  chapter] upon audit [and
   46  warrant] of the comptroller upon  vouchers  approved  by  the  chairman.
   47  [Such  payments  shall  be  considered  expenses of administration.] The
   48  chairman shall be reimbursed therefor from  the  surety  bond,  cash  or
   49  securities  held or, if such surety bond, securities or cash is insuffi-
   50  cient, by the employer, its receiver, liquidator, rehabilitator or trus-
   51  tee in bankruptcy. All moneys reimbursed to the chairman or recovered by
   52  the chairman in an action or proceeding  to  secure  such  reimbursement
   53  shall forthwith be applied as a credit against the expenses on which the
   54  assessment levied upon all private self-insured employers, in accordance
       S. 1406                            113                           A. 2106
 
    1  with  paragraphs  c  and  e  of  this  subdivision, is calculated.   The
    2  expenses of compensation and benefit payment of  insolvent  self-insured
    3  employers, as well as related third party administrator costs, shall not
    4  be considered an agency or fund of the state for the purposes of section
    5  four of the state finance law.
    6    §  3.  Paragraph  f  of  subdivision  5  of section 50 of the workers'
    7  compensation law, as amended by chapter 468 of  the  laws  of  1988,  is
    8  amended to read as follows:
    9    [f.]  g.  Whenever  the chairman shall determine that the compensation
   10  and benefits provided by this chapter may be unpaid  by  reason  of  the
   11  default  of an insolvent private self-insured employer and the penal sum
   12  of the surety bond and or the securities or irrevocable letters of cred-
   13  it or cash held on its behalf  by  the  chairman  are  about  to  become
   14  exhausted,  the  chairman  shall  levy an assessment against all private
   15  self-insured employers in accordance with paragraphs c  and  e  of  this
   16  subdivision  to assure prompt payment of such compensation and benefits.
   17  Whenever compensation and benefits are unpaid by reason of such default,
   18  the chairman shall promptly pay such  compensation  and  benefits  [from
   19  administration  expenses as provided in section one hundred fifty-one of
   20  this chapter] upon audit [and warrant] of the comptroller upon  vouchers
   21  approved  by  the  chairman.    The  expense of compensation and benefit
   22  payments of insolvent self-insured employers, as well as  related  third
   23  party  administrator  costs shall not be considered an agency or fund of
   24  the state for the purposes of section four of the state finance law.
   25    § 4. Subdivision 8 of section 4 of the state finance law,  as  amended
   26  by  chapter 635 of the laws of 1996 and as renumbered by section 85-b of
   27  chapter 1 of the laws of 1999, as added by chapter 13  of  the  laws  of
   28  2000, is amended to read as follows:
   29    8. For the purposes of this section, agency shall mean any department,
   30  agency,  board,  bureau,  commission, division, council or office of the
   31  state except as otherwise  provided  in  [section]  sections  fifty  and
   32  eighty-eight of the workers' compensation law.
   33    §  5.  This  act  shall take effect immediately and shall be deemed to
   34  have been in full force and effect on and after April 1, 2003.
 
   35                                   PART U
 
   36    Section 1. Subdivision 5 of section 359-e of the general business law,
   37  as amended by chapter 61 of the laws of 1989,  is  amended  to  read  as
   38  follows:
   39    5. The department of law shall collect the following fees: (a) [eight]
   40  twelve  hundred  dollars for each broker-dealer's statement; (b) [eight]
   41  twelve hundred dollars for each broker-dealer's  statement  filed  by  a
   42  person,  firm,  association  or corporation selling or offering for sale
   43  from or to the public within or from this state securities issued by  it
   44  for  any  amount  in  excess of five hundred thousand dollars; (c) [two]
   45  three hundred dollars for each  broker-dealer's  statement  filed  by  a
   46  person,  firm,  association  or corporation selling or offering for sale
   47  from or to the public within or from this state securities issued by  it
   48  for any amount of five hundred thousand dollars or less; (d) [two] three
   49  hundred  dollars  for  each broker-dealer's statement filed by a person,
   50  firm, association or corporation solely for the purpose  of  selling  or
   51  offering  for sale from or to the public within or from this state secu-
   52  rities consisting  of  condominiums,  shares  of  cooperative  apartment
   53  corporations  or commercial cooperative corporations, interests in home-
   54  owners associations or  interests  in  timeshare  projects,  plus  [ten]
       S. 1406                            114                           A. 2106
 
    1  fifteen  dollars for each partner, officer, director or principal of any
    2  such firm, association or corporation; (e) one hundred fifty dollars for
    3  each salesman's statement; (f) [twenty] thirty dollars for each  supple-
    4  mental  statement;  (g) [two] three hundred dollars for each application
    5  granted  pursuant  to  subdivision  two   of   section   three   hundred
    6  fifty-nine-f  of this article; and (h) [one] two hundred [fifty] twenty-
    7  five dollars for the issuance of a "no filing  required  letter";  these
    8  fees  shall  obtain  for both original statements and their renewals. No
    9  fee, however, shall be collected for filing a supplemental statement  by
   10  a salesman cancelling his prior registration as such salesman.
   11    Any  partner, officer, director or principal who is named as such in a
   12  broker-dealer statement and who shall act as a salesman for such  broker
   13  or dealer, shall not be required to register as a salesman.
   14    §  2.  Paragraph  (a) of subdivision 7 of section 352-e of the general
   15  business law, as amended by chapter 61 of the laws of 1989,  is  amended
   16  to read as follows:
   17    (a)  The  department  of  law shall collect the following fees for the
   18  filing of each offering statement or prospectus as described in subdivi-
   19  sion one of this section: [five] seven hundred fifty dollars  for  every
   20  offering  not in excess of two hundred fifty thousand dollars; for every
   21  offering in excess of two hundred fifty thousand  dollars,  [two-tenths]
   22  four-tenths  of  one percent of the total amount of the offering but not
   23  in excess of twenty thousand dollars of which one-half  of  said  amount
   24  shall  be  a  nonrefundable  deposit  paid at the time of submitting the
   25  offering statement to the department of law for review and  the  balance
   26  payable  upon  the  issuance  of  a letter of acceptance for filing said
   27  offering statement. The department of law shall, in addition, collect  a
   28  fee  of [one] two hundred [fifty] twenty-five dollars for each amendment
   29  to an offering statement.  For each application granted by  the  depart-
   30  ment  of  law  which permits the applicant to solicit public interest or
   31  public funds preliminary to the filing of an offering statement  or  for
   32  the  issuance  of  a  "no-filing required" letter, the department of law
   33  shall collect a fee of [one] two hundred [fifty] twenty-five dollars. In
   34  the event the sponsor thereafter files an offering  statement,  the  fee
   35  paid  for  the  preliminary  application  shall  be credited against the
   36  balance of the fee due and payable on  filing.    For  each  application
   37  granted  pursuant  to section three hundred fifty-two-g of this article,
   38  the department of law shall collect a fee of two-tenths of  one  percent
   39  of  the  amount  of the offering of securities; however, the minimum fee
   40  shall be [five] seven hundred fifty dollars and the maximum fee shall be
   41  twenty thousand dollars.
   42    § 3. This act shall take effect on the ninetieth day  after  it  shall
   43  have become a law.
 
   44                                   PART V
 
   45    Section  1. Subdivision 6 of section 301 of the abandoned property law
   46  is REPEALED.
   47    § 2. Subparagraph (iii) of paragraph (h) of subdivision 1  of  section
   48  300  of  the abandoned property law, as added by chapter 166 of the laws
   49  of 1991, is amended to read as follows:
   50    (iii) The certified letters required to be mailed to  apparent  owners
   51  of  securities  enrolled  in a reinvestment plan pursuant to subdivision
   52  two of section five hundred one of this chapter shall be mailed  in  the
   53  same  manner  and  at  the same time as specified in [subdivision six of
   54  section three hundred one of] this article, except that  such  certified
       S. 1406                            115                           A. 2106
 
    1  mail  must  be made to the apparent owners of such securities regardless
    2  of the amount.
    3    § 3. Section 1315 of the abandoned property law is amended by adding a
    4  new subdivision 4 to read as follows:
    5    4.  Any  amount  representing  an  unpaid check or draft issued by the
    6  state of New York which shall have remained unpaid after one  year  from
    7  the  date  of issuance in accordance with section one hundred two of the
    8  state finance law shall be deemed abandoned property and shall  be  paid
    9  to the state comptroller.
   10    §  4.  Subdivision  7 of section 1317 of the abandoned property law is
   11  REPEALED.
   12    § 5. Subdivision 2 of section 1406 of the abandoned property  law,  as
   13  amended  by  chapter  643  of  the  laws  of 1989, is amended to read as
   14  follows:
   15    2. (a) Claim in the amount or value of [fifteen hundred] five thousand
   16  dollars or more for any abandoned property heretofore paid to the  state
   17  pursuant  to  section  forty-four  of chapter fifty-eight of the laws of
   18  nineteen hundred nine or as such section  was  amended  by  chapter  two
   19  hundred seventeen of the laws of nineteen hundred thirty-three and chap-
   20  ter two hundred thirty-one of the laws of nineteen hundred thirty-eight,
   21  or  hereafter paid to the state comptroller pursuant to paragraph (a) of
   22  subdivision one of section six hundred of this chapter,  may  be  estab-
   23  lished only on order of the court which had original jurisdiction of the
   24  underlying  matter,  after  service of notice upon the state comptroller
   25  and upon due notice to all parties to the  action  or  proceeding  which
   26  resulted in the monies being paid into court. Any other provision of law
   27  to  the  contrary  notwithstanding, if an order directing payment by the
   28  state comptroller is made by the court, the claimant or  the  claimant's
   29  attorney  shall  serve  upon  the state comptroller a copy thereof, duly
   30  certified by the clerk of the court to be a true copy of the original of
   31  such order on file in the clerk's office.
   32    (b) Where the value or amount of  the  claim  is  less  than  [fifteen
   33  hundred]  five  thousand dollars, payment may be made by the state comp-
   34  troller on sworn application[, where the name and last known address  of
   35  the  person  or  persons  entitled  to payment and any other identifying
   36  information as appearing on the records of the court into which  payment
   37  was  made  is  included  in  the report which accompanied the payment of
   38  abandoned property pursuant to subdivision one of  section  six  hundred
   39  two of this chapter and] of the claimant when the identity of the claim-
   40  ant as the person entitled to payment is established to the satisfaction
   41  of  the state comptroller. When, in the determination of the state comp-
   42  troller, [the identifying information included in the report]  there  is
   43  insufficient  information  to  enable  the  state  comptroller to make a
   44  determination of entitlement, any claim, including a claim the amount of
   45  which is less than [fifteen hundred]  five  thousand  dollars,  must  be
   46  established  on order of the court as set forth in paragraph (a) of this
   47  subdivision. The decision of the state comptroller that the  information
   48  is insufficient shall not be deemed a denial of the claim.
   49    §  6.  The  abandoned  property law is amended by adding a new section
   50  1422 to read as follows:
   51    § 1422. Mailing of notice to owners of  record.    1.  Any  holder  of
   52  unclaimed funds which is not otherwise required to perform owner notifi-
   53  cation  mailings  under  the  provisions of this chapter shall send, not
   54  less than ninety days prior to the applicable reporting  date  for  such
   55  unclaimed  property, a written notice by first-class mail to each person
   56  appearing to be the owner of property listed in a  report  of  abandoned
       S. 1406                            116                           A. 2106
 
    1  property  required  to be filed under the provisions of this chapter, at
    2  the address of the owner as it appears on the books and records  of  the
    3  holder;  provided,  however,  that  the foregoing requirements shall not
    4  apply  where  (a)  the holder does not have an address for the owner; or
    5  (b) the holder can demonstrate that the only address that the holder has
    6  pertaining to the owner is not the current address of the owner.
    7    2. Where notice is required by subdivision one of this  section,  each
    8  holder shall, with respect to property listed in such report whose value
    9  is  in  excess  of one thousand dollars, send a second written notice to
   10  the owner by certified mail, return  receipt  requested  not  less  than
   11  sixty  days  prior  to  the applicable reporting date for such unclaimed
   12  property, provided that no notice pursuant to this subdivision shall  be
   13  required  where:  (a) such holder has received a claim from the owner of
   14  the property; or (b) the original mailing was returned as undeliverable.
   15    3. The written notice required by this section shall advise the  owner
   16  that  the  property  to  which  the owner appears to be entitled will be
   17  reported as abandoned property and will be remitted to the  state  comp-
   18  troller  unless such property is claimed by an entitled party before the
   19  required remittance date.
   20    4. The failure of any holder of abandoned property to comply with  the
   21  requirements  of  this section shall not in any way affect the reporting
   22  of abandoned property pursuant to the provisions of this chapter.
   23    5. Costs paid to the postal authorities by holders of unclaimed  prop-
   24  erty  to  provide  such written notice by certified mail, return receipt
   25  requested, may be deducted from the property as a service charge.
   26    § 7. Section 102 of the state finance law, as amended by  chapter  618
   27  of the laws of 1986, is amended to read as follows:
   28    §  102.  Amounts  of unpaid checks to be paid into [general] abandoned
   29  property fund. Upon audit and statement of the comptroller, the  amounts
   30  of all checks or drafts on bank accounts of any funds of the state which
   31  checks  or drafts have not been paid and which shall have been outstand-
   32  ing for more than [three years] one year from the respective dates ther-
   33  eof, shall be paid into  the  [treasury  of  the  state  by  the  proper
   34  disbursing officers or agents of such funds, to the credit of the gener-
   35  al fund] abandoned property fund pursuant to subdivision four of section
   36  one thousand three hundred fifteen of the abandoned property law.  [Upon
   37  payment into the treasury such] The proper disbursing officers or agents
   38  of  such  funds  shall  notify the bank or banks on which such checks or
   39  drafts were drawn not to pay the same.  The  comptroller  shall  keep  a
   40  record  of all such checks or drafts and upon presentation to him by the
   41  lawful holder of any such check or draft at  any  time,  the  amount  of
   42  which shall thus have been paid into the state treasury to the credit of
   43  the  general  fund,  the  comptroller,  to the extent appropriations are
   44  available, shall issue a new check or draft to the payee upon submission
   45  of proof satisfactory to the comptroller as to  the  legitimacy  of  the
   46  claim  and,  if insufficient appropriations are available, shall include
   47  in his next request for appropriations by the legislature the amount  or
   48  amounts  of  any  such  checks  or  drafts  so presented to him, for the
   49  purpose of payment without interest to  the  lawful  holder  or  holders
   50  thereof.
   51    §  8.  This act shall take effect immediately; provided, however, that
   52  sections three and seven of this act shall take effect April 1, 2003.
 
   53                                   PART W
       S. 1406                            117                           A. 2106
 
    1    Section 1. Subdivision 6 of section 846-k of  the  executive  law,  as
    2  added  by  section  2  of  part  T of chapter 57 of the laws of 2000, is
    3  amended to read as follows:
    4    6.  "Motor vehicle" shall be defined as in section one hundred twenty-
    5  five of the vehicle and traffic law, except that it shall  also  include
    6  motorcycles  as defined in section one hundred twenty-three of the vehi-
    7  cle and traffic law, trailers, semi-trailers  and  tractors  other  than
    8  tractors  used  exclusively for agricultural purposes, and shall exclude
    9  fire and  police  vehicles,  farm  equipment,  including  self-propelled
   10  machines  used  exclusively  in  growing,  harvesting  or  handling farm
   11  produce, tractors used exclusively for  agricultural  purposes,  or  for
   12  snow  plowing  other  than  for  hire, and self-propelled caterpillar or
   13  crawler-type equipment while being operated on the contract site.
   14    § 2. Subdivision 2 of section 846-l of the executive law,  as  amended
   15  by  section 3 of part T of chapter 57 of the laws of 2000, is amended to
   16  read as follows:
   17    2. The members of the board appointed on  the  recommendation  of  the
   18  speaker  of  the assembly and the temporary president of the senate, and
   19  the members of the board appointed by the governor pursuant to paragraph
   20  (d) of subdivision one of  this  section,  shall  be  representative  of
   21  consumers of motor vehicle insurance, motor vehicle insurance companies,
   22  law enforcement agencies and the judicial system. The appointments shall
   23  be  made  not later than one hundred eighty days after the date on which
   24  this section shall have become law. Members of the  board  who  are  not
   25  public  officials  shall  serve for a term of four years. Members of the
   26  board shall serve without compensation, except that members of the board
   27  who are not public officials shall be  entitled  to  receive  reasonable
   28  reimbursement  for  expenses  incurred  by  them in performance of their
   29  duties as members of the board. [A majority of the members of the  board
   30  shall  constitute a quorum for the transaction of business at a meeting]
   31  The board may establish its own requirements as to quorum  and  its  own
   32  procedures  with  respect  to conduct of its meetings and other affairs.
   33  Action may be taken by the board at a meeting upon a vote of the majori-
   34  ty of its members present. Every member of the board shall  be  entitled
   35  to  designate a representative to attend, in his or her place, a meeting
   36  of the board and to  vote  or  otherwise  act  in  his  or  her  behalf,
   37  provided, however, that a member may not designate such a representative
   38  more  than  once  each year. Written notice of such designation shall be
   39  furnished to the board by the designating member prior  to  any  meeting
   40  attended  by  his  or  her representative. Any such representative shall
   41  serve at the pleasure of the designating member. No such  representative
   42  shall be authorized to delegate any of his or her duties or functions to
   43  any  other  person.  The board shall meet at least four times each year,
   44  and at other times at the call of the chairperson or  upon  the  written
   45  request of two-thirds of the members of the board.
   46    §  3.  Subsections  (b),  (d) and (e) of section 9110 of the insurance
   47  law, subsections (b) and (d) as added by section 386 of  chapter  55  of
   48  the  laws  of 1992, subsection (e) as amended by chapter 170 of the laws
   49  of 1994, are amended to read as follows:
   50    (b) The annual fee is hereby imposed at the rate of [one dollar]  five
   51  dollars  per insured motor vehicle registered pursuant to the provisions
   52  of paragraph (b) of subdivision one of section four hundred one  of  the
   53  vehicle  and  traffic  law; provided, however, notwithstanding any other
   54  provision of law to the contrary, any county or city with  a  population
   55  of  one million or more in this state, acting through its local legisla-
   56  tive body, is hereby authorized and empowered to adopt, amend or  repeal
       S. 1406                            118                           A. 2106
 
    1  local  laws,  ordinances or resolutions to impose a fee in an amount not
    2  to exceed five dollars per  insured  motor  vehicle,  as  that  term  is
    3  defined  in  subdivision six of section eight hundred forty-six-k of the
    4  executive  law,  when  such  motor vehicle is registered pursuant to the
    5  provisions of paragraph (b) of subdivision one of section  four  hundred
    6  one  of  the vehicle and traffic law to an individual who resides within
    7  the county or city.  Such fee will be paid monthly by  insurance  compa-
    8  nies  to the superintendent on or before the fifteenth of the month next
    9  succeeding the month in which such collections are  received;  provided,
   10  however, such fee imposed by local law will be paid monthly by insurance
   11  companies  to  the  chief  fiscal  officer of such county or city with a
   12  population of one million or more, on or before  the  fifteenth  of  the
   13  month next succeeding the month in which such collections are received.
   14    (d)  In case any such company shall neglect or refuse to make and file
   15  such statement or pay over moneys collected from the fee imposed by this
   16  section the provisions of section nine thousand one hundred nine of this
   17  article shall apply.  In case any such company shall neglect  or  refuse
   18  to  make  and  file such statement or pay over the moneys collected from
   19  the local fee imposed in accordance with this  section  and  such  local
   20  law, ordinance or resolution requiring such local fee, the provisions of
   21  the  local  law,  ordinance  or  resolution regarding collection of such
   22  local fee or the filing of such statements shall apply.
   23    (e) All moneys received by the superintendent which are collected from
   24  policyholders of insurance on passenger motor vehicles  subject  to  the
   25  provisions  of  paragraph (a) of subdivision six of section four hundred
   26  one of the vehicle and traffic law shall be paid  to  the  state  police
   27  motor  vehicle  law  enforcement account established pursuant to section
   28  ninety-seven-mm of the state finance law by the tenth day of  the  month
   29  following  receipt of such collections. [By the end of each fiscal year,
   30  any moneys paid to  the  state  police  motor  vehicle  law  enforcement
   31  account  established  pursuant  to  section ninety-seven-mm of the state
   32  finance law which exceed nine million one hundred thousand dollars shall
   33  be paid to the motor vehicle theft and insurance fraud  prevention  fund
   34  established pursuant to section eighty-nine-d of the state finance law.]
   35    §  4.  Subdivision  2  of  section  89-d  of the state finance law, as
   36  amended by chapter 170 of the laws  of  1994,  is  amended  to  read  as
   37  follows:
   38    2.  Such fund shall consist of all moneys received by the state pursu-
   39  ant to subsection (f) of section nine thousand one hundred  ten  of  the
   40  insurance  law  [including  any moneys received by the state pursuant to
   41  subsection (e) of section nine thousand one hundred ten of the insurance
   42  law that are transfered to the fund] and all other grants,  bequests  or
   43  other  moneys  appropriated,  credited  or  transferred thereto from any
   44  other fund or source pursuant to law up to four  million  seven  hundred
   45  thousand  dollars  annually.  Any  moneys paid to such fund which exceed
   46  four million seven hundred thousand dollars annually shall  be  paid  to
   47  the  state  police  motor  vehicle  law  enforcement account established
   48  pursuant  to  section  ninety-seven-mm  of  the  state  finance  law  as
   49  received.
   50    §  5. Section 89-d of the state finance law is amended by adding a new
   51  subdivision 5 to read as follows:
   52    5. Up to seven percent of the moneys received by such fund  which  are
   53  appropriated to fund provider agencies as defined in subdivision five of
   54  section  eight  hundred  forty-six-k  of  the  executive law pursuant to
   55  grants awarded by the motor vehicle theft and insurance fraud board  and
   56  available  in any fiscal year may be spent on the administration of such
       S. 1406                            119                           A. 2106
 
    1  fund and the motor vehicle theft and insurance  fraud  board,  including
    2  but  not  limited  to,  personnel  and  related  services, and necessary
    3  nonpersonnel administrative costs of the division  of  criminal  justice
    4  services.
    5    §  6.  Subdivisions 2 and 3 of section 97-mm of the state finance law,
    6  as added by section 387 of chapter 55 of the laws of 1992,  are  amended
    7  to read as follows:
    8    2.  The  state  police  motor  vehicle  law  enforcement account shall
    9  consist of all moneys received by the state pursuant to  subsection  (e)
   10  of  section nine thousand one hundred ten of the insurance law including
   11  any moneys received by the state pursuant to subsection (f)  of  section
   12  nine  thousand one hundred ten of the insurance law that are transferred
   13  to the account in accordance with subdivision  two  of  section  eighty-
   14  nine-d  of the state finance law and all other grants, bequests or other
   15  moneys credited, appropriated, or transferred  thereto  from  any  other
   16  fund or source.
   17    3.  [Moneys] Nine million one hundred thousand dollars annually of the
   18  state police motor vehicle law enforcement account, following  appropri-
   19  ation  by  the legislature and allocation by the director of the budget,
   20  shall be made available for the state operation expenses of the division
   21  of state police including but not limited to  the  costs  of  activities
   22  relating  to the detection, prosecution or reduction of automobile theft
   23  and related purposes.  All other moneys of the state police motor  vehi-
   24  cle  law enforcement account, following appropriation by the legislature
   25  and allocation by the director of the budget, shall  be  made  available
   26  for the state operation expenses of the division of state police includ-
   27  ing but not limited to the costs of activities relating to highway safe-
   28  ty and public security.
   29    §  7.  Paragraphs  (b)  and  (d) of subdivision 2 and subdivision 3 of
   30  section 846-m of the executive law, as amended by section 6 of part T of
   31  chapter 57 of the laws of 2000, is amended to read as follows:
   32    (b) Activities eligible for funding include, but are not  limited  to,
   33  the  following:  prosecution  and adjudication services; law enforcement
   34  services; neighborhood or community based programs  designed  to  reduce
   35  the  incidence of motor vehicle theft and motor vehicle insurance fraud;
   36  educational  programs  designed  to  inform  owners  of  motor  vehicles
   37  concerning  activities  designed  to  prevent  the incidence of theft of
   38  motor vehicles and fraudulent claims practices; and programs designed to
   39  examine, evaluate and make recommendations relating to the  efficacy  of
   40  motor  vehicle  theft  prevention  devices or methods including, but not
   41  limited to, passive tracking devices designed to identify  the  location
   42  of  a  motor vehicle at any given point in time and window glass etching
   43  with vehicle identification numbers  or  any  other  unique  identifying
   44  symbol including decal programs such as New York city's operation combat
   45  auto  theft  (C.A.T.) funds provided under this program shall be used to
   46  augment, and not to supplant, the provider agency's current funding,  if
   47  any,  for motor vehicle theft and insurance fraud detection, prevention,
   48  or reduction activities, and shall only be used to fund  pilot  programs
   49  of  a  specified  duration not to extend beyond July first, two thousand
   50  [three] six.
   51    (d) The state  comptroller  shall  conduct  an  audit  of  all  moneys
   52  received  and  expended  by the fund as well as all other funds expended
   53  from any other source for the purposes of this program, and shall submit
   54  a written report detailing such audit to the governor and legislature on
   55  or before March first, two thousand [three] six.
   56    3. This article shall expire on July first, two thousand [three] six.
       S. 1406                            120                           A. 2106
 
    1    § 8. Subdivision (bbb) of section 427 of chapter 55  of  the  laws  of
    2  1992,  amending  the  tax law generally and enacting the omnibus revenue
    3  act of 1992, as amended by section 7 of part T of chapter 57 of the laws
    4  of 2000, is amended to read as follows:
    5    (bbb)  the provisions of subdivision (f) of section 9110 of the insur-
    6  ance law as added by section three hundred eighty-six of  this  act  and
    7  section  89-d of the state finance law as added by section three hundred
    8  eighty-eight of this act shall expire on July 1, [2003] 2006.
    9    § 9. Section 9 of part T of chapter 57 of the laws  of  2000  amending
   10  the  executive  law  relating  to  requiring the superintendent of state
   11  police to report yearly to the governor and  the  legislature  the  auto
   12  theft prevention activities of the state police for the previous year is
   13  amended to read as follows:
   14    §  9.  This  act shall take effect immediately provided, however, that
   15  the amendments to sections 846-j, 846-k, 846-l and 846-m of  the  execu-
   16  tive  law  made  by  this  act  shall  not affect the expiration of such
   17  sections and shall be deemed to  expire  therewith;  provided,  further,
   18  however,  that  the  provisions of subdivision 4 of section 97-mm of the
   19  state finance law, as added by section eight of this act,  shall  expire
   20  [and be deemed repealed] on July 1, [2003] 2006.
   21    §  10.  This  act shall take effect on the sixtieth day after it shall
   22  have become a law except that sections seven, eight and nine of this act
   23  shall take effect April 1, 2003; provided, however, if  this  act  shall
   24  become  law  after such date such sections shall take effect immediately
   25  and shall be deemed to have been in full force and effect on  and  after
   26  April  1, 2003; and provided further that the amendments to section 89-d
   27  of the state finance law made by sections four  and  five  of  this  act
   28  shall  not affect the expiration of such section and shall expire and be
   29  deemed repealed therewith.
 
   30                                   PART X
 
   31    Section 1. Section 2 of part A of chapter 411  of  the  laws  of  1999
   32  amending  the  executive  law,  relating  to permitting the secretary of
   33  state to provide special handling for all documents filed or  issued  by
   34  the  division  of  corporations  and to permit additional levels of such
   35  expedited service is amended to read as follows:
   36    § 2. This act shall take effect immediately and  shall  be  deemed  to
   37  have been in full force and effect on and after April 1, 1999 [and shall
   38  expire and be deemed repealed on March 31, 2003].
   39    § 2. This act shall take effect immediately.
 
   40                                   PART Y
 
   41    Section  1.  Section 1-e of the legislative law, as added by chapter 2
   42  of the laws of 1999, is amended to read as follows:
   43    § 1-e. Statement of registration. (a) (1) Every lobbyist shall annual-
   44  ly file with the commission, on forms  provided  by  the  commission,  a
   45  statement  of  registration  for  each calendar year; provided, however,
   46  that the filing of such statement of registration shall not be  required
   47  of any lobbyist who (i) in any year does not expend, incur or receive an
   48  amount  in excess of two thousand dollars of reportable compensation and
   49  expenses, as provided in paragraph five of subdivision  (b)  of  section
   50  one-h  of this article, for the purposes of lobbying or (ii) is an offi-
   51  cer, director, trustee or  employee  of  any  public  corporation,  when
   52  acting in such official capacity; provided however, that nothing in this
       S. 1406                            121                           A. 2106
 
    1  section  shall  be  construed  to  relieve any public corporation of the
    2  obligation to file such statements and reports as required by this arti-
    3  cle.
    4    (2)  [Such]  (i) Through calendar year two thousand three, such filing
    5  shall be completed on or before January first by those persons who  have
    6  been  retained, employed or designated as lobbyist on or before December
    7  fifteenth who reasonably anticipate that in the coming  year  they  will
    8  expend,  incur  or receive combined reportable compensation and expenses
    9  in an amount in excess of two  thousand  dollars;  for  those  lobbyists
   10  retained, employed or designated after December fifteenth, and for those
   11  lobbyists  who  subsequent  to their retainer, employment or designation
   12  reasonably anticipate combined reportable compensation and  expenses  in
   13  excess of such amount, such filing must be completed within fifteen days
   14  thereafter,  but in no event later than ten days after the actual incur-
   15  ring or receiving of such reportable compensation and expenses.
   16    (ii) For calendar year  two  thousand  four,  such  filings  shall  be
   17  completed  on  or  before  January  first by those persons who have been
   18  retained, employed or designated  as  lobbyist  on  or  before  December
   19  fifteenth,  two  thousand  three  who  reasonably anticipate that in the
   20  coming year they will  expend,  incur  or  receive  combined  reportable
   21  compensation  and  expenses  in  an  amount  in  excess  of two thousand
   22  dollars; for those lobbyists  retained,  employed  or  designated  after
   23  December  fifteenth,  two  thousand  three,  and for those lobbyists who
   24  subsequent to  their  retainer,  employment  or  designation  reasonably
   25  anticipate  combined  reportable  compensation and expenses in excess of
   26  such amount, such filing must be completed within fifteen days thereaft-
   27  er, but in no event later than ten days after the  actual  incurring  or
   28  receiving of such reportable compensation and expenses.
   29    (3)  Commencing  calendar  year two thousand five and thereafter every
   30  lobbyist shall biennially file with the commission, on forms provided by
   31  the commission, a statement of registration  for  each  biennial  period
   32  beginning  with the first year of the biennial cycle commencing calendar
   33  year two thousand five and thereafter; provided, however, that the bien-
   34  nial filing of such statement of registration shall not be  required  of
   35  any  lobbyist  who  (i) in any year does not expend, incur or receive an
   36  amount in excess of two thousand dollars of reportable compensation  and
   37  expenses,  as  provided  in paragraph five of subdivision (b) of section
   38  one-h of this article, for the purposes of lobbying or (ii) is an  offi-
   39  cer,  director,  trustee  or  employee  of  any public corporation, when
   40  acting in such official capacity; provided however, that nothing in this
   41  section shall be construed to relieve  any  public  corporation  of  the
   42  obligation to file such statements and reports as required by this arti-
   43  cle.
   44    (4)  Such  biennial  filings  shall  be completed on or before January
   45  first of the first year of a biennial cycle commencing in calendar  year
   46  two  thousand  five  and  thereafter,  by  those  persons  who have been
   47  retained, employed or designated  as  lobbyist  on  or  before  December
   48  fifteenth  of  the  previous calendar year and who reasonably anticipate
   49  that in the coming year they will  expend,  incur  or  receive  combined
   50  reportable compensation and expenses in an amount in excess of two thou-
   51  sand dollars; for those lobbyists retained, employed or designated after
   52  the  previous December fifteenth, and for those lobbyists who subsequent
   53  to their  retainer,  employment  or  designation  reasonably  anticipate
   54  combined  reportable compensation and expenses in excess of such amount,
   55  such filing must be completed within fifteen days thereafter, but in  no
       S. 1406                            122                           A. 2106
 
    1  event  later  than  ten  days after the actual incurring or receiving of
    2  such reportable compensation and expenses.
    3    (b)  (i)  Such  statements of registration shall be kept on file for a
    4  period of three years for those filing periods where  annual  statements
    5  are  required,  and shall be open to public inspection during such peri-
    6  od[.]; (ii) Biennial statements of registration shall be  kept  on  file
    7  for  a period of three biennial filing periods where biennial statements
    8  are required, and shall be open to public inspection during such period.
    9    (c) Such statement of registration shall contain:
   10    (1) the name, address and telephone number of the lobbyist;
   11    (2) the name, address and telephone number of the client by whom or on
   12  whose behalf the lobbyist is retained, employed or designated;
   13    (3) if such lobbyist is retained or employed  pursuant  to  a  written
   14  agreement  of  retainer  or  employment,  a  copy  of such shall also be
   15  attached and if such retainer or employment is oral, a statement of  the
   16  substance thereof;
   17    (4)  a  written  authorization from the client by whom the lobbyist is
   18  authorized to lobby, unless such lobbyist has filed a written  agreement
   19  of  retainer  or employment pursuant to paragraph three of this subdivi-
   20  sion;
   21    (5) a description of the general subject or subjects, the  legislative
   22  bill  numbers  of  any  bills  and  the rule, regulation, and ratemaking
   23  numbers of any rules, regulations, or rates  or  proposed  rules,  regu-
   24  lations, or rates on which the lobbyist is lobbying or expects to lobby;
   25    (6)  the  name of the person, organization, or legislative body before
   26  which the lobbyist is lobbying or expects to lobby;
   27    (7) if the lobbyist is retained, employed or designated by  more  than
   28  one  client,  a separate statement of registration shall be required for
   29  each such client.
   30    (d) Any amendment to the information filed  by  the  lobbyist  in  the
   31  original  statement of registration shall be submitted to the commission
   32  on forms supplied by the commission within ten days  after  such  amend-
   33  ment,  however,  this shall not require the lobbyist to amend the entire
   34  registration form.
   35    (e) (i) The first statement of registration  filed  annually  by  each
   36  lobbyist for calendar years through two thousand three shall be accompa-
   37  nied  by a registration fee of fifty dollars except that no registration
   38  fee shall be required of a public corporation. A fee  of  fifty  dollars
   39  shall  be required for any subsequent statement of registration filed by
   40  a lobbyist during the same calendar year; (ii) The  first  statement  of
   41  registration filed annually by each lobbyist for calendar year two thou-
   42  sand  four  shall  be  accompanied  by a registration fee of one hundred
   43  dollars except that no registration  fee  shall  be  required  from  any
   44  lobbyist  who in any year does not expend, incur or receive an amount in
   45  excess of five thousand dollars of reportable compensation and expenses,
   46  as provided in paragraph five of subdivision (b)  of  section  one-h  of
   47  this article, for the purposes of lobbying or of a public corporation. A
   48  fee  of  one hundred dollars shall be required for any subsequent state-
   49  ment of registration filed by a lobbyist during the same calendar  year;
   50  (iii)  The  first  statement  of  registration  filed biennially by each
   51  lobbyist for the first biennial registration requirements  for  calendar
   52  years  two  thousand  five and two thousand six and thereafter, shall be
   53  accompanied by a registration fee of two hundred dollars except that  no
   54  registration  fee  shall  be  required from any lobbyist who in any year
   55  does not expend, incur or receive an amount in excess of  five  thousand
   56  dollars  of  reportable  compensation and expenses, as provided in para-
       S. 1406                            123                           A. 2106
 
    1  graph five of subdivision (b) of section one-h of this article, for  the
    2  purposes  of  lobbying  or of a public corporation. A fee of two hundred
    3  dollars shall be required for any subsequent statement  of  registration
    4  filed  by a lobbyist during the same biennial period; (iv) The statement
    5  of registration filed after the due  date  of  a  biennial  registration
    6  shall  be  accompanied  by  a  registration  fee that is prorated to one
    7  hundred dollars for any registration filed after January  first  of  the
    8  second  calendar year covered by the biennial reporting requirement.  In
    9  addition to the fees authorized by  this  section,  the  commission  may
   10  impose  a  fee  for  late filing of a registration statement required by
   11  this section not to exceed twenty-five dollars for  each  day  that  the
   12  statement  required  to  be  filed  is late, except that if the lobbyist
   13  making a late filing has not previously been required by statute to file
   14  such a statement, the fee for late filing shall not exceed  ten  dollars
   15  for each day that the statement required to be filed is late.
   16    §  2.  This  act  shall take effect immediately and shall be deemed in
   17  full force and effect on and after April  1,  2003,  provided,  however,
   18  that  the  amendments  made  to  section  1-e  of the legislative law by
   19  section one of this act shall not affect the expiration  and  repeal  of
   20  such section as provided by chapter 2 of the laws of 1999, as amended.
 
   21                                   PART Z
 
   22    Section  1.  Subdivision  6  of section 259-i of the executive law, as
   23  added by chapter 904 of the laws of 1977, is amended to read as follows:
   24    6. Record of proceedings. The board shall provide for the making of  a
   25  verbatim  record  of  each [interview,] parole release [hearing,] inter-
   26  view, except where a decision is made to release the  inmate  to  parole
   27  supervision,  and each preliminary [hearing,] and final revocation hear-
   28  ing [and appeal], except when the  decision  of  the  presiding  officer
   29  after  such  hearings result in a dismissal of all charged violations of
   30  parole, conditional release or post release supervision.
   31    § 2. This act shall take effect immediately and  shall  be  deemed  to
   32  have been in full force and effect on and after April 1, 2003.
 
   33                                   PART AA
 
   34    Section  1.  Subdivision 1 of section 167 of the civil service law, as
   35  amended by chapter 582 of the laws of 1988 and paragraph (b) as  amended
   36  by chapter 317 of the laws of 1995, is amended to read as follows:
   37    1.  (a)  To  the  extent  that  an  agreement between the state and an
   38  employee organization entered into pursuant to article fourteen of  this
   39  chapter  so  provides  or  where  and  to the extent the employee health
   40  insurance council so directs with respect to any other  state  employees
   41  and  for  retired state employees, the contribution by the state for the
   42  cost of premium or subscription charges for the coverage of  such  state
   43  employees  and retired state employees who are enrolled in the statewide
   44  and supplementary health insurance plans shall be paid as set  forth  in
   45  this  subdivision.  The full cost of premium or subscription charges for
   46  the coverage of retired state employees who are enrolled in  the  state-
   47  wide  and  the supplementary health insurance plans established pursuant
   48  to this article and who retired prior to January first, nineteen hundred
   49  eighty-three shall be paid by  the  state.    [Nine-tenths]  Eighty-five
   50  percent  of the cost of premium or subscription charges for the coverage
   51  of state employees and retired state employees retiring  [on  or  after]
   52  between  January first, nineteen hundred eighty-three and December thir-
       S. 1406                            124                           A. 2106
 
    1  ty-first, two thousand three who  are  enrolled  in  the  statewide  and
    2  supplementary  health  insurance  plans  shall  be  paid  by  the state.
    3  [Three-quarters] Seventy percent of the cost of premium or  subscription
    4  charges  for  the  coverage  of  dependents  of such state employees and
    5  retired state employees retiring between January first, nineteen hundred
    6  eighty-three and December thirty-first, two thousand three shall be paid
    7  by the state.  [Except as provided in paragraph (b) of this subdivision,
    8  the state shall contribute toward the premium  or  subscription  charges
    9  for the coverage of each state employee or retired state employee who is
   10  enrolled  in  an  optional  benefit  plan and for the dependents of such
   11  state employee or retired state employee the same  dollar  amount  which
   12  would  be  paid by the state for the premium or subscription charges for
   13  the coverage of such state employee or retired state employee and his or
   14  her dependents if he or she were  enrolled  in  the  statewide  and  the
   15  supplementary  health  insurance plans, but not in excess of the premium
   16  or subscription charges for the  coverage  of  such  state  employee  or
   17  retired  state  employee  and  his or her dependents under such optional
   18  benefit plan. For purposes of this subdivision, employees of  the  state
   19  colleges of agriculture, home economics, industrial labor relations, and
   20  veterinary  medicine, the state agricultural experiment station at Gene-
   21  va, and any other institution or agency under the management and control
   22  of Cornell university as the representative of the board of trustees  of
   23  the  state university of New York, and employees of the state college of
   24  ceramics under the management and control of Alfred  university  as  the
   25  representative  of  the board of trustees of the state university of New
   26  York, shall be deemed to be state employees whose  salaries  or  compen-
   27  sation are paid directly by the state.
   28    (b)  Effective  January  first, nineteen hundred eighty-nine, notwith-
   29  standing] In the case of  state  employees  retiring  prior  to  January
   30  first,  nineteen hundred eighty-three, the state shall contribute three-
   31  quarters of the cost of premium or subscription charges for the coverage
   32  of dependents. Notwithstanding any other law, rule  or  regulation,  and
   33  where,  and  to  the  extent that, an agreement between the state and an
   34  employee organization entered into pursuant to article fourteen of  this
   35  chapter  so  provides  or  where  and  to the extent the employee health
   36  insurance council so directs with respect to any other  state  employees
   37  and  for  retired state employees retiring [on or after] between January
   38  first, nineteen hundred  eighty-three  and  December  thirty-first,  two
   39  thousand  three,  the  state  shall contribute [nine-tenths] eighty-five
   40  percent of the cost of premiums or subscription charges for coverage  of
   41  each such state employee or retired state employee who is enrolled in an
   42  optional benefit plan and [three-fourths] seventy percent of such premi-
   43  um  or  subscription  charges  for dependents of such state employees or
   44  retired  state  employees  enrolled  in  such  optional  benefit   plan;
   45  provided,  however,  [effective  January first, nineteen hundred ninety-
   46  six,] the contribution rates for the hospitalization and medical  compo-
   47  nents of each optional benefit plan shall not exceed one hundred percent
   48  of the dollar amount of the state's contribution toward the hospitaliza-
   49  tion  and  medical  components  of  individual  and  dependent coverage,
   50  respectively, in the Empire Plan. In the case of state employees  retir-
   51  ing  prior  to  January  first, nineteen hundred eighty-three, the state
   52  shall contribute one hundred  percent  of  the  individual  premium  and
   53  three-fourths  of  such premium for dependents of such retired employees
   54  enrolled in such optional  benefit  plan;  however,  these  contribution
   55  rates shall not exceed one hundred percent of the employer dollar amount
       S. 1406                            125                           A. 2106
 
    1  contribution  for  individual and dependent coverage respectively in the
    2  Empire Plan.
    3    (b)  Notwithstanding  any  other  provision  of  law,  the state shall
    4  contribute toward the premium or subscription charges for  the  coverage
    5  of retired state employees retiring on or after January first, two thou-
    6  sand  four  who have ten years of service and are enrolled in the state-
    7  wide and supplementary health insurance plans as follows:
    8    (i) The state shall pay fifty  percent  of  the  cost  of  premium  or
    9  subscription  charges  for  the coverage of such retired state employees
   10  who have ten years of service. Such contribution shall increase  by  one
   11  and  three-fourths  percent  of premium or subscription charges for each
   12  year of service in excess of ten years up to a maximum  contribution  of
   13  eighty-five percent of premium or subscription charges.
   14    (ii) The state shall pay thirty-five percent of the cost of premium or
   15  subscription  charges  for  the  coverage  of dependents of such retired
   16  state employees who have ten years of service. Such  contribution  shall
   17  increase  by  one  and  three-fourths percent of premium or subscription
   18  charges for each year of service in excess of ten years up to a  maximum
   19  contribution of seventy percent of premium or subscription charges.
   20    (iii)  The  state  shall contribute toward the premium or subscription
   21  charges for coverage of such retired state employees and for the  cover-
   22  age of dependents of such retired state employees who are enrolled in an
   23  optional  benefit  plan in accordance with subparagraphs (i) and (ii) of
   24  this paragraph for  retired  state  employees  and  dependents  of  such
   25  retired state employees who are enrolled in the statewide and supplemen-
   26  tary  health  insurance plans; provided, however, the contribution rates
   27  for the hospitalization and medical components of each optional  benefit
   28  plan  shall  not  exceed one hundred percent of the dollar amount of the
   29  state's contribution toward the hospitalization and  medical  components
   30  of individual and dependent coverage, respectively, in the Empire Plan.
   31    (c)  For purposes of this subdivision, employees of the state colleges
   32  of agriculture, home economics,  industrial  and  labor  relations,  and
   33  veterinary  medicine, the state agricultural experiment station at Gene-
   34  va, and any other institution or agency under the management and control
   35  of Cornell university as the representative of the board of trustees  of
   36  the  state university of New York, and employees of the state college of
   37  ceramics under the management and control of Alfred  university  as  the
   38  representative  of  the board of trustees of the state university of New
   39  York, shall be deemed to be state employees whose  salaries  or  compen-
   40  sation are paid directly by the state.
   41    § 2. This act shall take effect January 1, 2004.
 
   42                                   PART BB
 
   43    Section  1.  Subdivision 3 of section 200 of the state finance law, as
   44  added by chapter 302 of the laws of 1985, is amended to read as follows:
   45    3. (a) In any case where a state employee  has,  as  a  result  of  an
   46  administrative error by the state, received salary or other compensation
   47  payments  in  excess  of that to which he or she was entitled, the state
   48  will not attempt to recover such  overpayment,  except  in  those  cases
   49  described  in  paragraph  (b) of this subdivision.   Notwithstanding the
   50  foregoing, the state will, where such overpayment is  still  continuing,
   51  immediately  reduce  such [empolyee's] employee's current salary so that
   52  the salary paid to such employee prospectively is the salary  which  the
   53  employee is entitled to receive.
       S. 1406                            126                           A. 2106
 
    1    (b)  Nothing  contained  in  paragraph  (a)  of this subdivision shall
    2  prevent the state from recovering, by offset or otherwise, any  overpay-
    3  ment  made  (i) [for shift differential, geographic differential, incon-
    4  venience pay, pre-shift briefing pay or location pay; (ii)] for a period
    5  when  the  employee was neither performing services for the state nor on
    6  approved leave or [(iii)] (ii) under circumstances where the comptroller
    7  reasonably determines that the  employee  knew,  or  that  a  reasonable
    8  employee  should  have  known, that the salary paid to him or her was in
    9  excess of that which he or she was entitled to receive.
   10    § 2. This act shall take effect immediately.
 
   11                                   PART CC
 
   12    Section 1. The state comptroller is hereby authorized and directed  to
   13  loan  money in accordance with the provisions set forth in subdivision 5
   14  of section 4 of the state finance law  to  the  following  funds  and/or
   15  accounts:
   16    1. Tuition reimbursement fund (050):
   17    a. Proprietary vocational school supervision account (02).
   18    2. Local government records management improvement fund (052):
   19    a. Local gov't records management account (01).
   20    3. Dedicated highway and bridge trust fund (072):
   21    a. Highway and bridge capital account (01).
   22    4. State parks infrastructure trust fund (076):
   23    a. State parks infrastructure account (01).
   24    5. Clean water/clean air implementation fund (079).
   25    6. State lottery fund (160).
   26    7. Medicaid management information system escrow fund (179).
   27    8. Federal USDA-food and nutrition services fund (261):
   28    a. 2003 child and adult food care grant account.
   29    b. 2002 child and adult food care grant account.
   30    c. 2003 federal food and nutrition services account.
   31    d. 2002 federal food and nutrition services account.
   32    9. Federal health and human services fund (265):
   33    a. Miscellaneous agencies (80).
   34    b. 2003 children's health insurance account.
   35    c. 2002 children's health insurance account.
   36    10. Federal block grant fund (269):
   37    a. 2003 maternal and child health services block grant.
   38    b. 2002 maternal and child health services block grant.
   39    c. 2003 preventive health and human services block grant (N5).
   40    d. 2002 preventive health and human services block grant.
   41    e. 2003 abstinence education grant (N8).
   42    f. 2002 abstinence education grant.
   43    g. 2003 individuals with disabilities education act-part c (54).
   44    h. 2002 individuals with disabilities education act-part c.
   45    11. Federal operating grants fund (290):
   46    a. National recreation trail act grants (07).
   47    b. State side land and water conservation act (08).
   48    c. Historic preservation grants (13).
   49    d. Division of human rights federal housing assistance (19).
   50    e. Division of military and naval affairs training sites (30).
   51    f. FTA program management account (34).
   52    g.  Division  of  military  and  naval affairs army and national guard
   53  contract (35).
       S. 1406                            127                           A. 2106
 
    1    h. Division of military and naval affairs air national guard  contract
    2  (36).
    3    i.  Division of military and naval affairs air national guard security
    4  guards (38).
    5    j. HUD section 8 administration fees (42).
    6    k. Division of military and naval affairs emergency management account
    7    l. Highway safety section 402 account (54).
    8    m. HUD - emergency shelter grants (75).
    9    n. Federal library services technology act account (90).
   10    o. Federal energy management account - state heating oil program (AE).
   11    p. HUD - HOPWA automated (AK).
   12    q. Federal McKinney homeless grant program (AY).
   13    r. National park rehab (A1).
   14    s. Encon ISTEA (A9).
   15    t. Division of veterans' affairs - veterans' education account (B5).
   16    u. FTA program management account (FT).
   17    v. Division of human rights federal equal opportunity (G1).
   18    w. National community service fund (JA).
   19    x. Rural and small urban transit aid account (L2).
   20    y. Federal housing and urban development account-local planning (L3).
   21    z. Urban mass  transportation  administration  account-local  planning
   22  (L4).
   23    aa.  Federal  fund  for pipeline safety account - 1983 pipeline safety
   24  grant (L8).
   25    bb. Foster care and adoption (W6).
   26    cc. Encon agriculture (Y1).
   27    dd. Encon commerce (Y2).
   28    ee. Wildlife restoration (Y3).
   29    ff. Encon EPA (Y4).
   30    gg. Interior non wildlife (Y7).
   31    hh.  Air pollution control (Y8).
   32    ii.  Hazardous waste (Y9).
   33    jj. Army (YO).
   34    kk. Protection and advocacy for beneficiaries of social security (2I).
   35    ll. COPSMORE 98 grant (2P).
   36    mm. 2003 Safe drinking water.
   37    nn. 2002 Safe drinking water.
   38    oo. 2003 State indoor radon.
   39    pp. 2002 State indoor radon.
   40    qq. 2003 Asbestos compliance monitoring.
   41    rr. 2002 Asbestos compliance monitoring.
   42    ss. 2003 pollution prevention for the health care industry.
   43    tt. 2002 pollution prevention for the health care industry.
   44    uu. 2003 hazardous air pollutants and acute asthma in urban areas.
   45    vv. 2002 hazardous air pollutants and acute asthma in urban areas.
   46    ww. 2003 summer food grant.
   47    xx. 2002 summer food grant.
   48    yy. OCA - federal grants for drug court accounts.
   49    zz. Lead based paint program account (CH).
   50    aaa. Manufacturing extension partnership account.
   51    12. Federal capital projects fund (291).
   52    13. Sewage treatment program management and administration fund (300).
   53    14. Environmental conservation special revenue fund (301):
   54    a. Hazardous bulk storage account (F7).
   55    b. Utility environmental regulation account (H4).
   56    c. Low level radioactive waste siting account (K5).
       S. 1406                            128                           A. 2106
 
    1    d. Recreation account (K6).
    2    e. Conservationist magazine account (S4).
    3    f. Environmental regulatory account (S5).
    4    g. Mined land reclamation program account (XB).
    5    15. Environmental protection and oil spill compensation fund (303).
    6    16. Hazardous waste remedial fund (312):
    7    a. Site investigation and construction account (01).
    8    b. Hazardous waste clean up account.
    9    17. Mass transportation operating assistance fund (313):
   10    a. Public transportation systems account (01).
   11    b. Metropolitan mass transportation (02).
   12    18. Clean air fund (314):
   13    a. Operating permit program account (01).
   14    b. Mobile source account (02).
   15    19. Centralized services account (323).
   16    20. Agency enterprise fund (331):
   17    a. OGS convention center account (55).
   18    21. Agencies internal service fund (334):
   19    a. Transportation print shop account (01).
   20    b. Archives records management account (02).
   21    c. Civil recoveries account (03).
   22    d. Quick copy center account (07).
   23    e. Civil service law: sec 11 admin account (09).
   24    f. Civil service EHS DOCS evening shift service (10).
   25    g. Banking services account (12).
   26    h. Cultural resources survey account (14).
   27    i. Neighborhood work project (17).
   28    j. Automation & printing chargeback account (18).
   29    k. OFT NYT account (20).
   30    l. Entrepreneur technology (21).
   31    m. Data center account (23).
   32    n. Human service telecom account (24).
   33    o. NEXTSTEP account (25).
   34    p. OMRDD copy center account (26).
   35    22. Miscellaneous special revenue fund (339):
   36    a. Adoption information registry account (01).
   37    b. Statewide planning and research cooperative system account (03).
   38    c. New York state thruway authority account (08).
   39    d. Financial control board account (15).
   40    e. New York metropolitan transportation council account (17).
   41    f. Quality of care account (20).
   42    g. Certificate of need account (26).
   43    h. Education museum account (31).
   44    i. Hospital and nursing home management account (44).
   45    j. State university dormitory income reimbursable account (47).
   46    k. Energy research account (60).
   47    l. Criminal justice improvement account (62).
   48    m. Environmental laboratory reference fee account (81).
   49    n. Clinical laboratory reference fee account (90).
   50    o. Public employment relations board account (93).
   51    p. Radiological health protection account (95).
   52    q. Education library account (A3).
   53    r. Banking department account (A5).
   54    s. Cable television account (A6).
   55    t. Hospital based grants program account (AF).
   56    u. Indirect cost recovery account (AH).
       S. 1406                            129                           A. 2106
 
    1    v. High school equivalency program account (AI).
    2    w. DOH administration account (AP).
    3    x. Rail safety inspection account (AQ).
    4    y. Administrative reimbursement account (AR).
    5    z. Child support incentive revenue account (AX).
    6    aa. Multi-agency training account (AY).
    7    bb. Insurance department account (B6).
    8    cc. Industry and utility service account (BK).
    9    dd. Real property disposition account (BP).
   10    ee. Parking account (BQ).
   11    ff. Asbestos safety training program account (BW).
   12    gg. Improvement of real property tax administration account (BZ).
   13    hh. Public service account (C3).
   14    ii. Plant industry account (CZ).
   15    jj. Batavia school for the blind account (D9).
   16    kk. Financial oversight account (DI).
   17    ll. Regulation of indian gaming account (DT).
   18    mm. Special conservation activities account (DU).
   19    nn. Office of the professions account (E3).
   20    oo. Rome school for the deaf account (E6).
   21    pp. Seized assets account (E8).
   22    qq. Administrative adjudication account (E9).
   23    rr. Federal salary sharing account (EC).
   24    ss. Examination and miscellaneous revenue account (ER).
   25    tt. Transportation regulation account (F1).
   26    uu. Consumer protection account (F2).
   27    vv. State student financial aid audit account (FA).
   28    ww. Education archives account (G1).
   29    xx. Local services account (G3).
   30    yy.  Division  of  housing  and  community renewal housing information
   31  systems special revenue account (H1).
   32    zz. Housing special revenue account (H2).
   33    aaa. Department of motor vehicles compulsory insurance account (H7).
   34    bbb. Housing credit agency application fee account (J5).
   35    ccc. EPIC premium account (J6).
   36    ddd. Adult cystic fibrosis program account (L5).
   37    eee. Federal gasoline and diesel fuel excise tax account (L6).
   38    fff. Administrative reimbursement account (L7).
   39    ggg. Maternal and child HIV services account (LC).
   40    hhh. Low income housing credit monitoring fee account (NG).
   41    iii. Procurement opportunities newsletter account (P4).
   42    jjj. Corporation administration account (P6).
   43    kkk. Montrose veteran's home account (Q6).
   44    lll. Excelsior capital corporation reimbursement account (R1).
   45    mmm. Motor fuel quality account (R4).
   46    nnn. Weights and measures account (R5).
   47    ooo. Deferred compensation administration account (R7).
   48    ppp. Rent revenue other account (RR).
   49    qqq. Batavia medicaid income account (S1).
   50    rrr. Rent revenue account (S8).
   51    sss. Solid waste management account (W3).
   52    ttt. Occupational health clinics account (W4).
   53    uuu. Cultural education account.
   54    vvv. Forge-proof prescriptions account (RX).
   55    www. Vital records management account.
   56    xxx. OMRDD provider of service account.
       S. 1406                            130                           A. 2106
 
    1    yyy. Regulation of racing account.
    2    zzz. Statewide gaming account.
    3    23. State university income fund (345):
    4    a. State university general income offset account (11).
    5    24. State police and motor vehicle law enforcement fund (354):
    6    a. State police motor vehicle law enforcement account (02).
    7    25. Youth facilities improvement fund (357):
    8    a. Youth facilities improvement account (01).
    9    26. Highway safety program fund (362):
   10    a. Highway safety program account (01).
   11    27. Drinking water program management and
   12    administration fund (366):
   13    a. EFC drinking water program account (01).
   14    b. DOH drinking water program account (02).
   15    28. New York city county clerks offset fund (368):
   16    a. NYCCC operating offset account (01).
   17    29. Housing assistance fund (374).
   18    30. Housing program fund (376).
   19    31. Department of transportation - engineering services fund (380):
   20    a. Highway facility purpose account (01).
   21    32. Miscellaneous capital projects fund (387):
   22    a. Clean air capital account (08).
   23    33. Mental hygiene facilities capital improvement fund (389).
   24    34. Joint/labor management administration fund (394):
   25    a. Joint labor/management administration fund (01).
   26    35. Audit and control revolving fund (395):
   27    a. Executive direction internal audit account (04).
   28    36. Health insurance internal service fund (396):
   29    a. Health insurance internal service account (00).
   30    b. Civil service employee benefits div admin (01).
   31    37. Correctional industries revolving fund (397).
   32    38. Correctional facilities capital improvement fund (399).
   33    39. Federal unemployment insurance administration fund (480):
   34    a. UI administration (01).
   35    40. Federal unemployment insurance occupational training fund (484):
   36    a. Disaster relief grants (01).
   37    b. OTA-WTC fund (WT).
   38    41. Federal DOL grants (JTPA) (486):
   39    a. DOL welfare to work (06).
   40    b. SUNY SBDC (07).
   41    c. DOL workforce investment act (09).
   42    d. 5H90B - world trade (WT).
   43    §  2. Section 97-rrr of the state finance law, as added by section 7-a
   44  of part A of chapter 56 of the laws of 1998, is amended by adding a  new
   45  subdivision 5 to read as follows:
   46    5.   Notwithstanding   the   provisions   of   section   one   hundred
   47  seventy-one-a, as separately amended by chapters four hundred eighty-one
   48  and four hundred eighty-four of the laws of nineteen hundred eighty-one,
   49  of the tax law or any other provisions of law to  the  contrary,  during
   50  each  fiscal  year,  the  state  comptroller  is  hereby  authorized and
   51  directed to deposit into the school tax relief fund created pursuant  to
   52  this  section,  from amounts collected pursuant to article twenty-two of
   53  the tax law, the amounts necessary to meet the purposes of such fund for
   54  each fiscal year pursuant to a schedule submitted by the director of the
   55  budget.
       S. 1406                            131                           A. 2106
 
    1    § 3.  The comptroller is authorized and directed  to  deposit  to  the
    2  general  fund - state purposes account reimbursements from moneys appro-
    3  priated  or  reappropriated  to  the  correctional  facilities   capital
    4  improvement  fund (399) by a chapter of the laws of 2003. Reimbursements
    5  shall  be available for spending from appropriations made to the depart-
    6  ment of correctional services in  the  general  fund  -  state  purposes
    7  account  by  a chapter of the laws of 2003 for costs associated with the
    8  administration and security of capital  projects  and  for  other  costs
    9  which are attributable, according to a plan, to such capital projects.
   10    §  4.  Notwithstanding any law to the contrary, and in accordance with
   11  section 4 of the state finance law, the comptroller, after  consultation
   12  with  the  state university chancellor or his or her designee, is hereby
   13  authorized and directed to transfer moneys, in the first instance,  from
   14  the  state  university  collection  fund  (344),  Stony  Brook  hospital
   15  collection account (07), Brooklyn hospital collection account (08),  and
   16  Syracuse hospital collection account (09) to the state university income
   17  fund  (345), state university hospitals income reimbursable account (22)
   18  in the event insufficient funds are available in  the  state  university
   19  income  fund  (345),  state  university  hospitals  income  reimbursable
   20  account (22) to transfer moneys, in amounts  sufficient  to  permit  the
   21  full  transfer  of  moneys  authorized for transfer, to the general debt
   22  service fund (311) for payment of  debt  service  related  to  the  SUNY
   23  hospitals.  Notwithstanding  any law to the contrary, the comptroller is
   24  also hereby authorized and directed, after consultation with  the  state
   25  university  chancellor  or  his or her designee, to transfer moneys from
   26  the state university income fund (345) to the  state  university  income
   27  fund  (345), state university hospitals income reimbursable account (22)
   28  in the event insufficient funds are available in  the  state  university
   29  income  fund  (345),  state  university  hospitals  income  reimbursable
   30  account (22) to pay hospital operating costs or to transfer  moneys,  in
   31  amounts  sufficient to permit the full transfer of moneys authorized for
   32  transfer, to the general debt service fund (311)  for  payment  of  debt
   33  service related to the SUNY hospitals.
   34    §  5.  Section 57 of part K of chapter 81 of the laws of 2002 relating
   35  to providing for  the  administration  of  certain  funds  and  accounts
   36  related to the 2002-2003 budget is amended to read as follows:
   37    §  57.   This act shall take effect immediately and shall be deemed to
   38  have been in full force and effect on and after April 1, 2002; provided,
   39  however, that sections one  [through],  three  through  seven,  eight-a,
   40  nine,  twelve,  thirteen,  and fourteen through twenty-three of this act
   41  shall expire March 31, 2003, when upon such date the provisions of  such
   42  sections shall be deemed repealed.
   43    §  6.  Subdivision 5 of section 4 of the state finance law, as amended
   44  by chapter 260 of the laws of 1993, is amended to read as follows:
   45    5. No money or other  financial  resources  shall  be  transferred  or
   46  temporarily  loaned  from one fund to another without specific statutory
   47  authorization for such transfer or temporary  loan,  except  that  [the]
   48  money  or  other financial resources of a fund may be temporarily loaned
   49  to another fund only if such loan shall be repaid in full prior  to  the
   50  end  of  each  month  during  which such loan is outstanding, so that an
   51  accurate accounting and reporting of the balance of financial  resources
   52  in  each  fund  at the end of each month may be made. The comptroller is
   53  hereby authorized to temporarily loan money from the general fund or any
   54  other fund to the fund/accounts that are authorized to receive  a  loan.
   55  Such  loans shall be limited to the amounts immediately required to meet
   56  disbursements, made in pursuance of an appropriation by law and  author-
       S. 1406                            132                           A. 2106
 
    1  ized  by a certificate of approval issued by the director of the budget,
    2  with copies thereof filed with the comptroller  and  the  chair  of  the
    3  senate  finance  committee  and the chair of the assembly ways and means
    4  committee. The director of the budget shall not issue such a certificate
    5  unless  he or she shall have determined that the amounts to be so loaned
    6  are receivable on account. When  making  loans,  the  comptroller  shall
    7  establish appropriate accounts and, if the loan is not repaid by the end
    8  of  the  month,  provide on or before the fifteenth day of the following
    9  month to the director of the budget, the chair  of  the  senate  finance
   10  committee,  and  the  chair of the assembly ways and means committee, an
   11  accurate accounting and report of the financial resources of  each  such
   12  fund  at  the  end of such month. Within ten days of the receipt of such
   13  accounting and reporting, the director of the budget shall  provide  the
   14  chair of the senate finance committee and the chair of the assembly ways
   15  and  means  committee with an expected schedule of repayment by fund and
   16  by source for each outstanding loan. Repayment  shall  be  made  by  the
   17  comptroller from the first cash receipt of this fund.
   18    § 7. Section 97-rrr of the state finance law, as amended by section 45
   19  of  part  H  of  chapter  56  of the laws of 2000, is amended to read as
   20  follows:
   21    § 97-rrr. Debt reduction reserve fund.  1. There is hereby established
   22  in the joint custody of the comptroller and the commissioner of taxation
   23  and finance a fund to be known as the debt reduction reserve fund.  Such
   24  fund shall be established as a [capital  projects]  debt  service  fund.
   25  Notwithstanding  the  provisions of subdivision four of section seventy-
   26  two of this article, any balance of moneys in the debt reduction reserve
   27  fund shall remain in such fund to be available for the purposes  enumer-
   28  ated in this section.
   29    2. Such fund shall consist of all monies credited or transferred ther-
   30  eto  from the general fund or from any other fund or sources pursuant to
   31  law.
   32    3. The monies in such fund, following appropriation by the legislature
   33  and allocation by the director of the budget, shall be available for the
   34  following purposes:
   35    (a) for the payment of principal, interest, and  related  expenses  on
   36  general obligation bonds, lease purchase payments, or special contractu-
   37  al  obligation  payments,  or  for the purposes of retiring or defeasing
   38  bonds previously issued, including any accrued interest thereon, for any
   39  state-supported bonding program or programs, and;
   40    (b) for the funding of capital projects,  equipment  acquisitions,  or
   41  similar  expenses  which  have  been  authorized  by  law to be financed
   42  through the issuance of bonds, notes, or other obligations.
   43    § 8.  (1) Pursuant to various chapters of  the  laws  of  2003  making
   44  appropriations for capital projects, such appropriations shall be deemed
   45  to provide all costs necessary and pertinent to accomplish the intent of
   46  the appropriation, including apportionments to departments, agencies, or
   47  corporations  for  the  purposes  of  the  specific appropriation or for
   48  payment to  the  construction  management  account  of  the  centralized
   49  services  fund  of the New York state office of general services for the
   50  preparation and review of plans,  specifications,  estimates,  services,
   51  construction    management   and   supervision,   inspection,   studies,
   52  appraisals, surveys, testing, and environmental statements  relating  to
   53  existing or proposed facilities.
   54    Appropriations  from the capital projects fund, the city university of
   55  New York capital projects fund, the mental hygiene  capital  improvement
   56  fund,  the department of health facilities capital improvement fund, the
       S. 1406                            133                           A. 2106
 
    1  correctional facilities capital improvement fund, the  youth  facilities
    2  improvement fund, the housing assistance fund, the housing program fund,
    3  the  engineering  services  fund, the dedicated highway and bridge trust
    4  fund,  the  suburban  transportation fund, the state park infrastructure
    5  fund, the passenger facility charge fund, the state university residence
    6  hall rehabilitation fund, the state university  capital  projects  fund,
    7  the New York state canal system development fund, the financial security
    8  fund,  the  natural resources damages fund, the federal capital projects
    9  fund, and the regional aviation fund are appropriated in accordance with
   10  the provisions of section 93 of the state finance law. Moneys  appropri-
   11  ated  from  each  such  fund  type for CCP's, for agency purposes within
   12  CCP's, and for projects sharing the same agency purpose within a CCP may
   13  be transferred among projects within a CCP in accordance with paragraphs
   14  (a) through (g) of subdivision 4 of section 93 of the state finance  law
   15  and  may be transferred among purposes within a CCP subject to the limi-
   16  tations of paragraph (e) of subdivision 4 of section  93  of  the  state
   17  finance law.
   18    Notwithstanding  the  provisions  of  any  general or special law, the
   19  provisions of paragraphs (a) through (g) of subdivision 4 of section  93
   20  of  the state finance law which relate to the transfer of a portion of a
   21  capital appropriation to another capital appropriation shall be applica-
   22  ble to appropriations from each fund.
   23    (2) The following funds are eligible to be reimbursed  from  miscella-
   24  neous receipts or the proceeds of notes or bonds sold by public authori-
   25  ties, as specified in this subdivision:
   26    (a)  the health facilities capital improvement fund, from the proceeds
   27  of the sale of notes or bonds issued by the  New  York  state  dormitory
   28  authority;
   29    (b)  the  dedicated  highway and bridge trust fund, from miscellaneous
   30  receipts or the proceeds of the sale of notes or bonds issued by the New
   31  York state thruway authority;
   32    (c) the youth facilities improvement fund and the correctional facili-
   33  ties capital improvement fund, from the proceeds of the sale of notes or
   34  bonds issued by the New York state urban development corporation or  any
   35  other public authority;
   36    (d) the housing assistance fund and the housing program fund, from the
   37  proceeds  of  the  sale  of notes or bonds issued by the housing finance
   38  agency or any other public authority;
   39    (e) the mental  hygiene  capital  facilities  improvement  fund,  from
   40  miscellaneous  receipts  or  the  proceeds of the sale of notes or bonds
   41  issued by the New York state dormitory authority  as  successor  to  the
   42  medical  care  facilities financing agency pursuant to chapter 83 of the
   43  laws of 1995;
   44    (f) the environmental protection fund, from miscellaneous receipts  or
   45  the  proceeds of the sale of notes or bonds issued by the New York state
   46  environmental facilities corporation or any other public authority.  The
   47  comptroller  shall  receive such reimbursements for deposit in the funds
   48  so specified; and
   49    (g) the hazardous waste remedial fund, from miscellaneous receipts  or
   50  the  proceeds of the sale of notes or bonds issued by the New York state
   51  environmental facilities corporation or any other public authority.
   52    (3) The comptroller is  hereby  authorized  and  directed  to  deposit
   53  moneys received, as specified below:
   54    (a)  the  engineering  services fund shall receive reimbursements from
   55  various capital appropriations;
       S. 1406                            134                           A. 2106
 
    1    (b) the financial security fund  shall  receive  moneys  recovered  in
    2  accordance  with  various  required  financial security arrangements for
    3  environmental projects;
    4    (c)  the natural resources damages fund shall receive moneys recovered
    5  from successful natural resource damage claims and related  settlements;
    6  and
    7    (d)  the regional aviation fund shall receive moneys from the lease of
    8  Stewart Airport, including any payments due to the  state  from  related
    9  settlements or agreements.
   10    (4)  The  comptroller  shall  certify  monthly, to the director of the
   11  budget and the chairs of the senate finance and assembly ways and  means
   12  committees,  the  total  disbursements  from the correctional facilities
   13  capital improvement fund (399),  the  department  of  health  facilities
   14  capital  improvement  fund (071), the housing assistance fund (374), the
   15  youth facilities improvement fund (357), the housing program fund (376),
   16  and the  mental  hygiene  capital  improvement  fund  (389),  the  total
   17  reimbursements  to  such  funds  from  bond  proceeds, and the amount of
   18  disbursements from  such  funds  remaining  to  be  financed  with  bond
   19  proceeds.  Once a year, as soon as practicable after March 31, the comp-
   20  troller  shall  certify, to the director of the budget and the chairs of
   21  the senate finance and assembly  ways  and  means  committees,  for  the
   22  fiscal year just ended, total disbursements from the correctional facil-
   23  ities  capital  improvement  fund,  the  department of health facilities
   24  capital improvement fund, the youth  facilities  improvement  fund,  the
   25  housing  assistance  fund,  the  housing  program  fund,  and the mental
   26  hygiene capital improvement fund any amounts transferred from the  capi-
   27  tal projects fund to such funds for nonbondable disbursements, the total
   28  reimbursements  to  such  funds  from  bond  proceeds, and the amount of
   29  disbursements from  such  funds  remaining  to  be  financed  with  bond
   30  proceeds.
   31    (5)  The  dormitory authority of the state of New York and the depart-
   32  ment of health shall report quarterly to the director of the budget  the
   33  amounts  expended from appropriations in the capital projects fund which
   34  are eligible for reimbursement from the proceeds of the bonds. The hous-
   35  ing finance agency, in conjunction with the  affordable  housing  corpo-
   36  ration, the homeless housing assistance corporation and the commissioner
   37  of  the  office  of temporary and disability assistance, and the housing
   38  trust fund corporation shall report quarterly to  the  director  of  the
   39  budget  on  the  amounts  disbursed  from  appropriations in the housing
   40  program fund and the housing assistance  fund  which  are  eligible  for
   41  repayment from the proceeds of the bonds. The dormitory authority of the
   42  state  of  New  York,  as successor to the facilities development corpo-
   43  ration pursuant to chapter 83 of the laws of 1995,  and  the  office  of
   44  mental  health, the office of mental retardation and developmental disa-
   45  bilities, and the office of  alcoholism  and  substance  abuse  services
   46  shall  report  quarterly  to  the  director of the budget on the amounts
   47  disbursed from appropriations in the mental hygiene capital  improvement
   48  fund  which  are  eligible  for  reimbursement  from the proceeds of the
   49  bonds. Such reports shall be submitted to the director of the budget  no
   50  later  than  July 30, October 31, January 30, and April 30 of each state
   51  fiscal year. The director of the budget shall review these  reports  and
   52  then  certify  to  the comptroller amounts expended from these appropri-
   53  ations which are reimbursable from bond proceeds. Until such time as the
   54  director of the budget determines that the amounts disbursed  from  such
   55  funds  are  not  reimbursable from bond proceeds, all such disbursements
   56  shall be considered to be reimbursable from  bond  proceeds.  Upon  such
       S. 1406                            135                           A. 2106
 
    1  certifications  for  the  housing  assistance  fund, the housing program
    2  fund, and the mental hygiene capital improvement fund,  the  comptroller
    3  is  hereby authorized to transfer from the capital projects fund, pursu-
    4  ant  to an appropriation, an amount equal to the amount of disbursements
    5  from these appropriations which have not  been  certified  as  repayable
    6  from bond proceeds.
    7    §  9.    Notwithstanding  any  other  law,  rule, or regulation to the
    8  contrary, the comptroller is hereby authorized and directed to  deposit,
    9  to  the  credit  of  the  capital  projects fund, reimbursement from the
   10  proceeds of notes and  bonds  issued  by  the  environmental  facilities
   11  corporation  or  any  other public authority for a capital appropriation
   12  for $20,241,000 authorized by chapter 55 of the  laws  of  1998  to  the
   13  department  of  environmental conservation for a payment of a portion of
   14  the state's match  for  federal  capitalization  grants  for  the  water
   15  pollution control revolving loan fund.
   16    §  10.    Notwithstanding  any  other  law, rule, or regulation to the
   17  contrary, the comptroller is hereby authorized and directed to  deposit,
   18  to  the  credit  of  the  capital  projects fund, reimbursement from the
   19  proceeds of notes and  bonds  issued  by  the  environmental  facilities
   20  corporation  or  any  other public authority for a capital appropriation
   21  for $22,404,000 authorized by chapter 55 of the  laws  of  1999  to  the
   22  department of environmental conservation for payment of a portion of the
   23  state's  match for federal capitalization grants for the water pollution
   24  control revolving loan fund, reimbursements for  spending  from  various
   25  appropriations  for  projects  related  to  the New York City Watershed,
   26  reimbursement from the proceeds of notes and bonds issued by  the  envi-
   27  ronmental  facilities  corporation  or  any other public authority for a
   28  capital appropriation for $22,500,000 authorized by chapter  55  of  the
   29  laws of 1999 to the environmental facilities corporation for payment for
   30  the  jobs two thousand pipeline for jobs program, reimbursement from the
   31  proceeds of notes and bonds issued by the  dormitory  authority  or  any
   32  other  public authority of the state of New York for a capital appropri-
   33  ation for $47,500,000 authorized by chapter 55 of the laws  of  1999  to
   34  the  office of science, technology and academic research for payment for
   35  the jobs two thousand capital facilities program, reimbursement from the
   36  proceeds of notes and bonds issued by the  dormitory  authority  or  any
   37  other  public authority of the state of New York for a capital appropri-
   38  ation for $145,000,000 authorized by chapter 53 of the laws of  1999  to
   39  the  state  education  department  for  payment  of capital construction
   40  grants to school districts pursuant to the rebuilding schools to  uphold
   41  education  program,  and  reimbursement  from  the proceeds of notes and
   42  bonds issued by the urban development corporation or  any  other  public
   43  authority  for  a  capital  appropriation  for $25,000,000 authorized by
   44  chapter 55 of the laws of 1999 to all  state  agencies  for  payment  of
   45  costs  related  to  economic development, land acquisition, and heritage
   46  trail projects.
   47    § 11.   Notwithstanding any other law,  rule,  or  regulation  to  the
   48  contrary,  the comptroller is hereby authorized and directed to deposit,
   49  to the credit of the  capital  projects  fund,  reimbursement  from  the
   50  proceeds of notes or bonds issued by the environmental facilities corpo-
   51  ration  or  any  other  public authority for a capital appropriation for
   52  $43,383,000 authorized by chapter 55 of the laws of 2000 to the  depart-
   53  ment  of  environmental  conservation  for  payment  of a portion of the
   54  state's match for federal capitalization grants for the water  pollution
   55  control  revolving  loan fund, to reimburse spending from various appro-
   56  priations for certain projects related to the New York  City  Watershed,
       S. 1406                            136                           A. 2106
 
    1  reimbursement  from  the proceeds of notes and bonds issued by the urban
    2  development corporation or any other  public  authority  for  a  capital
    3  appropriation  for  $15,000,000  authorized by chapter 55 of the laws of
    4  2000  to  the urban development corporation for payment of costs related
    5  to a sports facility in the city of Rochester,  reimbursement  from  the
    6  proceeds  of notes and bonds issued by the urban development corporation
    7  of the state of New York for a  capital  appropriation  for  $50,000,000
    8  authorized  by  chapter  55 of the laws of 2000 to the urban development
    9  corporation  for  payment  of  costs  related  to  economic  development
   10  projects  in  the  downtown  Buffalo,  the Buffalo inner harbor area, or
   11  surrounding environs, reimbursement from proceeds  of  notes  and  bonds
   12  issued  by  the urban development corporation, the environmental facili-
   13  ties corporation, the dormitory authority, or any other public authority
   14  of the state of New York for a capital  appropriation  for  $225,000,000
   15  authorized  by  chapter 55 of the laws of 2000 to all state agencies for
   16  payment of costs related to the strategic investment program, reimburse-
   17  ment from the proceeds of  notes  and  bonds  issued  by  the  dormitory
   18  authority  or  any other public authority of the state of New York for a
   19  capital appropriation for $50,000,000 authorized by chapter  53  of  the
   20  laws  of  2000  to the state education department for payment of capital
   21  construction grants to  school  districts  pursuant  to  the  rebuilding
   22  schools to uphold education program, for reimbursement from the proceeds
   23  of notes and bonds issued by the dormitory authority or any other public
   24  authority  of  the  state  of  New  York for a capital appropriation for
   25  $15,000,000 authorized by chapter 53 of the laws of 2000 to  the  office
   26  of  children  and  family  services  for payment of costs related to the
   27  child care facilities development program, and  for  reimbursement  from
   28  the proceeds of notes and bonds issued by the dormitory authority or any
   29  other  public authority of the state of New York for a capital appropri-
   30  ation for $10,000,000 authorized by chapter 55 of the laws  of  2000  to
   31  the  office  of science, technology and academic research for payment of
   32  costs related to biomedical research and/or manufacturing facilities.
   33    § 12.   Notwithstanding any other law,  rule,  or  regulation  to  the
   34  contrary,  the  comptroller is hereby authorized and directed to deposit
   35  to the credit of the  capital  projects  fund,  reimbursement  from  the
   36  proceeds of notes or bonds issued by the environmental facilities corpo-
   37  ration  or  any  other  public authority for a capital appropriation for
   38  $29,772,000 authorized by chapter 54 of the laws of 2001 to the  depart-
   39  ment  of  environmental  conservation  for  payment  of a portion of the
   40  state's match for federal capitalization grants for the water  pollution
   41  control revolving loan fund.
   42    §  13.    Notwithstanding  any  other  law, rule, or regulation to the
   43  contrary, the comptroller is hereby authorized and directed to  deposit,
   44  to  the  credit  of  the  capital  projects fund, reimbursement from the
   45  proceeds of notes or bonds issued by the environmental facilities corpo-
   46  ration or any other public authority for  a  capital  appropriation  for
   47  $29,365,000  authorized by chapter 54 of the laws of 2002 to the depart-
   48  ment of environmental conservation for  payment  of  a  portion  of  the
   49  state's  match for federal capitalization grants for the water pollution
   50  control revolving loan fund, reimbursement from the  proceeds  of  notes
   51  and  bonds  issued  by  the  urban  development corporation or any other
   52  public authority or other financing source for a  capital  appropriation
   53  for  $89,000,000  authorized  by  chapter  50 of the laws of 2002 to the
   54  office of general services for payment of capital construction costs for
   55  the Alfred E. Smith office building  located  in  the  city  of  Albany,
   56  reimbursement  from  the proceeds of notes and bonds issued by the urban
       S. 1406                            137                           A. 2106
 
    1  development corporation or any other public authority or other financing
    2  source for capital appropriations for $1,500,000 authorized  by  chapter
    3  50  of the laws of 2002 to the office of general services for payment of
    4  capital  construction  costs  for the Elk street parking garage building
    5  located in the city of Albany, reimbursement from the proceeds of  notes
    6  or bonds issued by the urban development corporation or any other public
    7  authority for disbursements of up to $12,000,000 from any capital appro-
    8  priation or reappropriation authorized by chapter 50 of the laws of 2002
    9  to  the  office  of general services for various purposes, reimbursement
   10  from the proceeds of notes or bonds issued by the environmental  facili-
   11  ties  corporation  or any other public authority for a capital appropri-
   12  ation of $13,250,000 authorized by chapter 55 of the laws of 2002 to the
   13  energy research and development  authority  for  the  Western  New  York
   14  Nuclear  Service  Center at West Valley, reimbursement from the proceeds
   15  of notes or bonds issued by the urban  development  corporation  or  any
   16  other  public  authority  for  a  capital  appropriation  of $14,300,000
   17  authorized by chapter 55 of the laws of 2002 to  the  urban  development
   18  corporation  to finance a portion of the jobs now program, reimbursement
   19  from the proceeds of notes or bonds issued by the dormitory authority or
   20  any other public authority for disbursements of up to  $20,800,000  from
   21  any capital appropriation or reappropriation authorized by chapter 51 of
   22  the   laws  of  2002  to  the  judiciary  for  courthouse  improvements,
   23  reimbursement from the proceeds of notes or bonds issued  by  the  urban
   24  development  corporation or any other public authority for disbursements
   25  of up to $15,000,000 from appropriations or reappropriations  authorized
   26  by  chapter  50  of  the laws of 2002 to any agency for costs related to
   27  homeland security, and reimbursement from the proceeds of notes or bonds
   28  issued by the environmental facilities corporation or any  other  public
   29  authority for a capital appropriation of $10,000,000 authorized by chap-
   30  ter  54 of the laws of 2002 to the department of environmental conserva-
   31  tion for Onondaga Lake.
   32    § 14. Notwithstanding any  other  law,  rule,  or  regulation  to  the
   33  contrary,  the  comptroller is hereby authorized and directed to deposit
   34  to the credit of the  capital  projects  fund,  reimbursement  from  the
   35  proceeds of notes or bonds issued by the environmental facilities corpo-
   36  ration  or  any  other  public authority for a capital appropriation for
   37  $30,174,000 authorized by a chapter of the laws of 2003 to  the  depart-
   38  ment  of  environmental  conservation  for  payment  of a portion of the
   39  state's match for federal capitalization grants for the water  pollution
   40  control revolving loan fund, reimbursement from the proceeds of notes or
   41  bonds  issued  by  the urban development corporation or any other public
   42  authority or other financing  source  for  a  capital  appropriation  of
   43  $19,500,000 authorized by a chapter of the laws of 2003 to the office of
   44  general  services  for payment of capital construction costs for the Elk
   45  street parking garage building located in the city of Albany, reimburse-
   46  ment from the proceeds of notes or bonds issued by the urban development
   47  corporation or any other public authority for  disbursements  of  up  to
   48  $10,000,000 from any capital appropriation or reappropriation authorized
   49  by  a  chapter of the laws of 2003 to the office of general services for
   50  various purposes, reimbursement from the  proceeds  of  notes  or  bonds
   51  issued  by  the environmental facilities corporation or any other public
   52  authority for a capital appropriation of  $13,250,000  authorized  by  a
   53  chapter  of  the  laws  of  2003  to the energy research and development
   54  authority for the Western  New  York  Nuclear  Service  Center  at  West
   55  Valley,  reimbursement from the proceeds of notes or bonds issued by the
   56  dormitory authority or any other public authority for  disbursements  of
       S. 1406                            138                           A. 2106
 
    1  up  to  $16,400,000  from  any  capital appropriation or reappropriation
    2  authorized by a chapter of the laws of 2003 to the judiciary for  court-
    3  house  improvements,  reimbursement  from the proceeds of notes or bonds
    4  issued by the urban development corporation or any other public authori-
    5  ty for disbursements of up to $8,000,000 from appropriations or reappro-
    6  priations  authorized by a chapter of the laws of 2003 to any agency for
    7  costs related to homeland security, reimbursement from the  proceeds  of
    8  notes or bonds issued by the environmental facilities corporation or any
    9  other  public  authority  for  a  capital  appropriation  of $10,000,000
   10  authorized by a chapter of the laws of 2003 to the department  of  envi-
   11  ronmental  conservation  for  Onondaga  Lake, and reimbursement from the
   12  proceeds of notes or bonds issued by the environmental facilities corpo-
   13  ration or  any  other  public  authority  for  disbursements  of  up  to
   14  $11,000,000 from any capital appropriation or reappropriation authorized
   15  by  a  chapter  of  the  laws of 2003 to the department of environmental
   16  conservation for environmental purposes.
   17    § 15.   Notwithstanding any other law,  rule,  or  regulation  to  the
   18  contrary, the state comptroller is hereby authorized and directed to use
   19  any  balance  remaining  in the mental health services fund debt service
   20  appropriation, after payment by the state comptroller of all obligations
   21  of the facilities development corporation or any successor agency there-
   22  of, required  pursuant  to  any  lease,  sublease,  or  other  financing
   23  arrangement between the facilities development corporation, the dormito-
   24  ry authority of the state of New York as successor to the New York state
   25  medical care facilities financing agency, and the facilities development
   26  corporation  pursuant  to chapter 83 of the laws of 1995 and the depart-
   27  ment of mental hygiene for the purpose of making payments to such agency
   28  for the amount of the earnings for the investment of monies deposited in
   29  the mental health services fund that such agency determines will or  may
   30  have  to be rebated to the federal government pursuant to the provisions
   31  of the internal revenue code of 1986, as amended,  in  order  to  enable
   32  such  agency  to  maintain the exemption from federal income taxation on
   33  the interest paid to the holders of such agency's mental services facil-
   34  ities improvement revenue bonds. On or before June 30, 2004, such agency
   35  shall certify to the state comptroller its determination of the  amounts
   36  received  in  the mental health services fund as a result of the invest-
   37  ment of monies deposited therein that will or may have to be rebated  to
   38  the federal government pursuant to the provisions of the internal reven-
   39  ue code of 1986, as amended.
   40    §  16.   (1) Notwithstanding any other law, rule, or regulation to the
   41  contrary, the state comptroller shall at the commencement of each  month
   42  certify to the director of the budget, the commissioner of environmental
   43  conservation,  the  chair of the senate finance committee, and the chair
   44  of the assembly ways and means committee the amounts disbursed from  all
   45  appropriations  for  hazardous  waste site remediation disbursements for
   46  the month preceding such certification.
   47    (2) Notwithstanding any law to the contrary, prior to the issuance  by
   48  the comptroller of bonds authorized pursuant to subdivision a of section
   49  4  of the environmental quality bond act of nineteen hundred eighty-six,
   50  as enacted by chapter 511 of the laws of 1986,  disbursements  from  all
   51  appropriations  for  that  purpose shall first be reimbursed from moneys
   52  credited to the hazardous waste remedial fund,  site  investigation  and
   53  construction  account,  to  the  extent  moneys  are  available  in such
   54  account. For purposes of determining moneys available in  such  account,
   55  the  commissioner  of  environmental  conservation  shall certify to the
       S. 1406                            139                           A. 2106
 
    1  comptroller the amounts required for  administration  of  the  hazardous
    2  waste remedial program.
    3    (3)  The comptroller is hereby authorized and directed to transfer any
    4  balance above the amounts certified by the commissioner of environmental
    5  conservation to reimburse disbursements pursuant to  all  appropriations
    6  from  such site investigation and construction account; provided, howev-
    7  er, that if such transfers are  determined  by  the  comptroller  to  be
    8  insufficient  to  assure  that  interest  paid to holders of state obli-
    9  gations issued for hazardous waste purposes  pursuant  to  the  environ-
   10  mental  quality  bond  act of nineteen hundred eighty-six, as enacted by
   11  chapter 511 of the laws of 1986, is exempt from federal income taxation,
   12  the comptroller is hereby authorized and directed to transfer, from such
   13  site investigation and construction account to  the  general  fund,  the
   14  amount  necessary  to  redeem bonds in an amount necessary to assure the
   15  continuation of such tax exempt status. Prior to the making of any  such
   16  transfers,  the  comptroller  shall notify the director of the budget of
   17  the amount of such transfers.
   18    § 17. Subdivision 4 of section  66-b  of  the  state  finance  law  is
   19  REPEALED and a new subdivision 4 is added to read as follows:
   20    4.  The  maximum  amount  of  certificates of participation or similar
   21  instruments representing periodic payments due from  the  state  of  New
   22  York,  issued  on  behalf  of  state  departments and agencies, the city
   23  university of New York and any other state  entity  otherwise  specified
   24  after  March  thirty-first,  two thousand three shall be seventy million
   25  dollars. Such amount shall be exclusive of certificates of participation
   26  or similar instruments issued to fund a reserve fund or funds, costs  of
   27  issuance and to refund outstanding certificates of participation.
   28    §  18. Subject to the provisions of chapter 59 of the laws of 2000 and
   29  pursuant to article 5-A of the state finance law, the  total  amount  of
   30  certificates  of  participation  to  be  issued in the state fiscal year
   31  beginning April 1, 2003, to finance and, where appropriate to refinance,
   32  personal property purposes excluding the cost of  issuance  and  related
   33  costs,  shall  not  exceed  $70,000,000 for installment purchases and/or
   34  lease purchases of all state departments  and  agencies,  units  of  the
   35  state  university  of  New York and city university of New York, and the
   36  unified court system.
   37    § 19. Subdivision 1 of section 16 of part D of chapter 389 of the laws
   38  of 1997, relating  to  the  financing  of  the  correctional  facilities
   39  improvement  fund,  as  amended by section 30 of part H of chapter 56 of
   40  the laws of 2000, is amended to read as follows:
   41    1. [Notwithstanding] Subject to the provisions of chapter  59  of  the
   42  laws  of 2000, but notwithstanding the provisions of section 18 of chap-
   43  ter 174 of the laws of 1968, the New York state urban development corpo-
   44  ration is hereby authorized to issue bonds, notes, and other obligations
   45  in an aggregate principal amount  not  to  exceed  [four]  five  billion
   46  [five] one hundred [fifty] sixty-seven million [six] seven hundred nine-
   47  ty-three thousand dollars [($4,550,693,000)] ($5,167,793,000), and shall
   48  include all bonds, notes, and other obligations issued pursuant to chap-
   49  ter  56 of the laws of 1983, as amended or supplemented. The proceeds of
   50  such bonds, notes, or other obligations shall be paid to the state,  for
   51  deposit  in the correctional facilities capital improvement fund, to pay
   52  for all or any portion of the amount or amounts paid by the  state  from
   53  appropriations or reappropriations made to the department of correction-
   54  al  services  from  the correctional facilities capital improvement fund
   55  for capital projects. The aggregate amount of  bonds,  notes,  or  other
   56  obligations  authorized  to  be  issued  pursuant  to this section shall
       S. 1406                            140                           A. 2106
 
    1  exclude bonds, notes, or other obligations issued to refund or otherwise
    2  repay  bonds,  notes,  or  other  obligations  theretofore  issued,  the
    3  proceeds  of  which  were  paid to the state for all or a portion of the
    4  amounts  expended  by  the state from appropriations or reappropriations
    5  made to the department of correctional services; provided, however, that
    6  upon any such refunding  or  repayment  the  total  aggregate  principal
    7  amount  of outstanding bonds, notes, or other obligations may be greater
    8  than [four] five billion [five] one hundred [fifty] sixty-seven  million
    9  [six]  seven  hundred  ninety-three  thousand dollars [($4,550,693,000)]
   10  ($5,167,793,000), only if  the  present  value  of  the  aggregate  debt
   11  service of the refunding or repayment bonds, notes, or other obligations
   12  to  be  issued  shall not exceed the present value of the aggregate debt
   13  service of the bonds, notes, or other obligations so to be  refunded  or
   14  repaid. For the purposes hereof, the present value of the aggregate debt
   15  service of the refunding or repayment bonds, notes, or other obligations
   16  and  of  the  aggregate debt service of the bonds, notes, or other obli-
   17  gations so refunded or repaid, shall  be  calculated  by  utilizing  the
   18  effective  interest  rate of the refunding or repayment bonds, notes, or
   19  other obligations, which shall be that rate arrived at by  doubling  the
   20  semi-annual   interest  rate  (compounded  semi-annually)  necessary  to
   21  discount the debt service payments on the refunding or repayment  bonds,
   22  notes,  or  other obligations from the payment dates thereof to the date
   23  of issue of the refunding or repayment  bonds,  notes,  or  other  obli-
   24  gations  and  to  the price bid, including estimated accrued interest or
   25  proceeds received by the corporation, including estimated accrued inter-
   26  est from the sale thereof.
   27    § 20. Paragraph (a) of subdivision 2 of section 47-e  of  the  private
   28  housing finance law, as amended by section 25 of part K of chapter 81 of
   29  the laws of 2002, is amended to read as follows:
   30    (a)  [In]  Subject to the provisions of chapter fifty-nine of the laws
   31  of two thousand, in order to enhance  and  encourage  the  promotion  of
   32  housing  programs and thereby achieve the stated purposes and objectives
   33  of such housing programs, the agency shall have the power and is  hereby
   34  authorized  from  time to time to issue negotiable housing program bonds
   35  and notes in such principal amount as  shall  be  necessary  to  provide
   36  sufficient  funds for the repayment of amounts disbursed (and not previ-
   37  ously reimbursed) pursuant to a chapter of  the  laws  of  two  thousand
   38  [two]  three or any prior year making capital appropriations or reappro-
   39  priations for the purposes of the housing program[,]; provided, however,
   40  that the agency may issue such bonds and notes in an aggregate principal
   41  amount not exceeding one billion [four] five  hundred  [ten]  twenty-six
   42  million  dollars,  plus  a  principal amount of bonds issued to fund the
   43  debt service reserve fund in accordance with the  debt  service  reserve
   44  fund  requirement  established  by  the  agency  and  to  fund any other
   45  reserves that the agency reasonably deems necessary for the security  or
   46  marketability  of  such bonds and to provide for the payment of fees and
   47  other charges and expenses, including  underwriters'  discount,  trustee
   48  and rating agency fees, bond insurance, credit enhancement and liquidity
   49  enhancement  related to the issuance of such bonds and notes. No reserve
   50  fund securing the housing program bonds shall be entitled or eligible to
   51  receive state funds apportioned or appropriated to maintain  or  restore
   52  such  reserve  fund at or to a particular level, except to the extent of
   53  any deficiency resulting directly or indirectly from a  failure  of  the
   54  state to appropriate or pay the agreed amount under any of the contracts
   55  provided for in subdivision four of this section.
       S. 1406                            141                           A. 2106
 
    1    §  21.  Paragraph  (a) of subdivision 5 of section 47-e of the private
    2  housing finance law, as amended by section 26 of part K of chapter 81 of
    3  the laws of 2002, is amended to read as follows:
    4    (a) [Upon] Subject to the provisions of chapter fifty-nine of the laws
    5  of  two  thousand,  upon the issuance of housing program bonds or notes,
    6  the agency shall apply such amount of the proceeds thereof as  shall  be
    7  designated  and  specified in the bond or note resolution or resolutions
    8  authorizing the issuance of such bonds or notes to  the  specific  funds
    9  and/or  accounts of one or more housing programs. The bond resolution or
   10  resolutions authorizing the issuance of such bonds or notes  shall  only
   11  allocate  net proceeds of bonds or notes to a particular fund or account
   12  of a housing program if the legislature has authorized in a  chapter  of
   13  the  laws  of  two  thousand [two] three or any prior year an advance to
   14  such fund or account, and the amount of such bond or  note  proceeds  so
   15  allocated  to  such fund or account shall not exceed the total amount so
   16  authorized to be advanced. Such proceeds shall be disbursed  to  such  a
   17  fund  or account in accordance with such allocation only for application
   18  to the repayment of advances previously or thereupon made and not previ-
   19  ously repaid. Such proceeds  may  not  be  transferred  from  an  entity
   20  authorized to administer a housing program to the state or a fund of the
   21  state,  except  in  repayment  of  such  advances. Except in the case of
   22  refunding bonds or notes authorized hereunder, any net proceeds  not  so
   23  allocated  or  disbursed  shall be utilized first to pay debt service on
   24  the applicable bonds or notes in the current or  the  succeeding  fiscal
   25  year  and  second to the redemption of such bonds[,]; provided that such
   26  application may be adjusted to comply with applicable federal law as  to
   27  federal tax exemption. For purposes of this paragraph, earnings from the
   28  investment of net proceeds shall be treated as net proceeds.
   29    §  22. Section 17 of part D of chapter 389 of the laws of 1997, relat-
   30  ing to the financing of the youth facility improvement fund, as  amended
   31  by section 41 of part H of chapter 56 of the laws of 2000, is amended to
   32  read as follows:
   33    §  17.  Youth facilities bond program. 1. [Notwithstanding] Subject to
   34  the provisions of chapter 59 of the laws of  2000,  but  notwithstanding
   35  the  provisions of section 18 of section 1 of chapter 174 of the laws of
   36  1968, the New York state urban development corporation is hereby author-
   37  ized to issue bonds, notes and other obligations in an aggregate princi-
   38  pal amount not to exceed three hundred twenty-eight million five hundred
   39  fifteen thousand dollars ($328,515,000), which  authorization  increases
   40  the  aggregate  principal  amount  of bonds, notes and other obligations
   41  authorized by section 40 of chapter 309 of the laws of 1996,  and  shall
   42  include  all bonds, notes and other obligations issued pursuant to chap-
   43  ter 211 of the laws of 1990, as amended or supplemented. The proceeds of
   44  such bonds, notes or other obligations shall be paid to the  state,  for
   45  deposit  in the youth facilities improvement fund, to pay for all or any
   46  portion of the amount or amounts paid by the state  from  appropriations
   47  or  reappropriations  made to the office of children and family services
   48  from the youth facilities improvement fund  for  capital  projects.  The
   49  aggregate  amount of bonds, notes and other obligations authorized to be
   50  issued pursuant to this section shall  exclude  bonds,  notes  or  other
   51  obligations  issued  to  refund or otherwise repay bonds, notes or other
   52  obligations theretofore issued, the proceeds of which were paid  to  the
   53  state  for  all  or  a portion of the amounts expended by the state from
   54  appropriations or reappropriations made to the office  of  children  and
   55  family  services;  provided,  however,  that  upon any such refunding or
   56  repayment the total aggregate principal  amount  of  outstanding  bonds,
       S. 1406                            142                           A. 2106
 
    1  notes  or  other  obligations  may be greater than three hundred twenty-
    2  eight million five hundred fifteen thousand dollars ($328,515,000), only
    3  if the present value of the aggregate debt service of the  refunding  or
    4  repayment  bonds,  notes  or  other  obligations  to be issued shall not
    5  exceed the present value of the aggregate debt  service  of  the  bonds,
    6  notes or other obligations so to be refunded or repaid. For the purposes
    7  hereof, the present value of the aggregate debt service of the refunding
    8  or repayment bonds, notes or other obligations and of the aggregate debt
    9  service  of the bonds, notes or other obligations so refunded or repaid,
   10  shall be calculated by utilizing the  effective  interest  rate  of  the
   11  refunding or repayment bonds, notes or other obligations, which shall be
   12  that   rate  arrived  at  by  doubling  the  semi-annual  interest  rate
   13  (compounded  semi-annually)  necessary  to  discount  the  debt  service
   14  payments on the refunding or repayment bonds, notes or other obligations
   15  from  the payment dates thereof to the date of issue of the refunding or
   16  repayment bonds, notes or other obligations and to the price bid includ-
   17  ing estimated accrued interest or proceeds received by  the  corporation
   18  including estimated accrued interest from the sale thereof.
   19    2.  For purposes of this section, the following provisions shall apply
   20  to powers in connection with financing and refinancing  of  the  design,
   21  acquisition,  construction,  reconstruction, rehabilitation and improve-
   22  ment of facilities for the office of children and family services by the
   23  New York state urban development corporation.
   24    (a) The New York state office of general services shall be responsible
   25  for the undertaking of  studies,  planning,  site  acquisition,  design,
   26  construction, reconstruction, renovation and development of youth facil-
   27  ities,  including the making of any purchases therefor, on behalf of the
   28  New York state office of children and family services.
   29    (b) Notwithstanding the provisions of any general or  special  law  to
   30  the  contrary, and subject to the making of annual appropriations there-
   31  for by the legislature, in order to assist  the  New  York  state  urban
   32  development  corporation in the financing and refinancing of the design,
   33  acquisition, construction, reconstruction, rehabilitation  and  improve-
   34  ment  of  facilities for the office of children and family services, the
   35  director of the budget is authorized in any state fiscal year  to  enter
   36  into  one  or  more service contracts, none of which shall exceed thirty
   37  years in duration, with the New  York  state  urban  development  corpo-
   38  ration,  upon  such terms as the director of the budget and the New York
   39  state urban development corporation agree;
   40    (c) Any service contract entered into pursuant  to  paragraph  (a)  of
   41  this  subdivision  or  any payments made or to be made thereunder may be
   42  assigned and pledged by the New York state urban development corporation
   43  as security for its bonds and notes;
   44    (d) Any such service contract shall provide that the obligation of the
   45  director of the budget or of the state to fund or  to  pay  the  amounts
   46  therein provided for shall not constitute a debt of the state within the
   47  meaning  of  any  constitutional or statutory provision in the event the
   48  New York state urban development corporation assigns or pledges  service
   49  contract payments as security for its bonds or notes and shall be deemed
   50  executory  only to the extent moneys are available and that no liability
   51  shall be incurred by the state  beyond  the  moneys  available  for  the
   52  purpose,  and that such obligation is subject to annual appropriation by
   53  the legislature;
   54    (e) Any service contract or contracts for projects entered into pursu-
   55  ant to this subdivision shall provide for state commitments  to  provide
   56  annually  to  the  New York state urban development corporation a sum or
       S. 1406                            143                           A. 2106
 
    1  sums, upon such terms and conditions as shall be deemed  appropriate  by
    2  the  director  of  the  budget,  to  fund,  or  to fund the debt service
    3  requirements of, any bonds or notes, including bonds issued to fund  any
    4  required  debt  service  reserve  requirement for bonds, of the New York
    5  state urban development corporation issued to pay to the state all or  a
    6  portion  of  the  amounts  expended  by the state from appropriations or
    7  reappropriations made to the office of children and family services  for
    8  capital projects.
    9    3.  (a)  The provisions of section 17 of the public officers law shall
   10  apply to directors, officers, employees and agents of the New York state
   11  urban development corporation in connection with  any  and  all  claims,
   12  demands,  suits,  actions  or  proceedings  which may be made or brought
   13  against any of them arising out of any determinations  made  or  actions
   14  taken or omitted to be taken in compliance with any obligations under or
   15  pursuant  to  the terms of this section. The provisions of this subdivi-
   16  sion shall be in addition to and shall not supplant any  indemnification
   17  or  other  benefits  heretofore  or  hereafter conferred upon directors,
   18  officers and employees of the corporation by subdivision 3-a of  section
   19  4  of section 1 of chapter 174 of the laws of 1968, as amended by action
   20  of such corporation, or otherwise.
   21    (b) The state shall and hereby agrees to and does indemnify  and  save
   22  harmless  the  New  York  state  urban  development corporation from and
   23  against any and all liability, loss,  damage,  interest,  judgments  and
   24  liens,  and  any  and all costs and expenses (including, but not limited
   25  to, counsel fees and  disbursements)  arising  out  of  or  incurred  in
   26  connection   with  any  and  all  claims,  demands,  suits,  actions  or
   27  proceedings which may be made or brought against  such  corporation  (1)
   28  arising out of any determinations made or actions taken or omitted to be
   29  taken  or compliance with any obligations under or pursuant to the terms
   30  of this act, or (2) for or in relation to any injuries, including  death
   31  at any time resulting therefrom, sustained by a person or persons, or on
   32  account of damage to or loss of property, through theft or otherwise, to
   33  the  extent  the  same  arises  out  of or in consequence of the design,
   34  acquisition, construction, reconstruction, rehabilitation  and  improve-
   35  ment  of  facilities  for  the  office  of children and family services,
   36  including the furnishing and equipping thereof, but in  each  such  case
   37  only  to  the  extent that such corporation is not otherwise compensated
   38  therefor by insurance.
   39    § 23. Section 34 of part K of chapter 81 of the laws of 2002, relating
   40  to the financing of the Alfred E. Smith office building located  in  the
   41  city of Albany, is amended to read as follows:
   42    § 34. (a) [Notwithstanding] Subject to the provisions of chapter 59 of
   43  the  laws  of  2000, but notwithstanding the provisions of section 18 of
   44  the New York state urban development corporation act, the urban develop-
   45  ment corporation is hereby authorized to issue bonds or notes in one  or
   46  more  series in an aggregate principal amount not to exceed $89,000,000,
   47  excluding bonds issued to fund one or more debt service  reserve  funds,
   48  to  pay  costs  of  issuance of such bonds, and bonds or notes issued to
   49  refund or otherwise repay such bonds or notes previously issued, for the
   50  purpose of financing the Alfred E. Smith office building located in  the
   51  city  of  Albany,  including the reimbursement of any disbursements made
   52  from the state capital projects fund. Such bonds and notes of the corpo-
   53  ration shall not be a debt of the state, and  the  state  shall  not  be
   54  liable  thereon,  nor  shall they be payable out of any funds other than
   55  those appropriated by the state to the corporation for debt service  and
   56  related  expenses pursuant to any service contracts executed pursuant to
       S. 1406                            144                           A. 2106
 
    1  subdivision (b) of this section and such bonds and notes  shall  contain
    2  on  the  face of thereof a statement to such effect. Except for purposes
    3  of complying with the internal revenue code, any interest income  earned
    4  on bond proceeds shall only be used to pay debt service on such bonds.
    5    (b) Notwithstanding any provisions of law to the contrary, in order to
    6  assist  the  corporation in undertaking the administration and financing
    7  of the project authorized pursuant to subdivision (a) of  this  section,
    8  the  director  of  the  budget is hereby authorized to enter into one or
    9  more service contracts with the corporation, none of which shall  exceed
   10  more  than  twenty  years in duration, upon such terms and conditions as
   11  the director of the budget and the corporation agree, so as to  annually
   12  provide  to  the  corporation  in the aggregate, a sum not to exceed the
   13  annual debt service payments and related expenses required for the bonds
   14  and notes issued pursuant to this section. Any service contract  entered
   15  into  pursuant  to this subdivision shall provide that the obligation of
   16  the state to pay the amount therein provided shall not constitute a debt
   17  of the state within the  meaning  of  any  constitutional  or  statutory
   18  provision  and  shall  be  deemed executory only to the extent of monies
   19  available and that no liability shall be incurred by  the  state  beyond
   20  the  monies available for such purposes, subject to annual appropriation
   21  by the legislature. Any such contract or any payments made or to be made
   22  thereunder may be assigned and pledged by the  corporation  as  security
   23  for its bonds and notes, as authorized by this section.
   24    § 24. Section 35 of part K of chapter 81 of the laws of 2002, relating
   25  to  the  financing  of the Elk street parking garage building located in
   26  the city of Albany, is amended to read as follows:
   27    § 35. (a) [Notwithstanding] Subject to the provisions of chapter 59 of
   28  the laws of 2000, but notwithstanding the provisions of  section  18  of
   29  the New York state urban development corporation act, the urban develop-
   30  ment  corporation is hereby authorized to issue bonds or notes in one or
   31  more series in an aggregate principal amount not to exceed  $21,000,000,
   32  excluding  bonds  issued to fund one or more debt service reserve funds,
   33  to pay costs of issuance of such bonds, and bonds  or  notes  issued  to
   34  refund or otherwise repay such bonds or notes previously issued, for the
   35  purpose  of  financing the Elk street parking garage building located in
   36  the city of Albany, including the  reimbursement  of  any  disbursements
   37  made  from  the state capital projects fund. Such bonds and notes of the
   38  corporation shall not be a debt of the state, and the state shall not be
   39  liable thereon, nor shall they be payable out of any  funds  other  than
   40  those  appropriated by the state to the corporation for debt service and
   41  related expenses pursuant to any service contracts executed pursuant  to
   42  subdivision  (b)  of this section and such bonds and notes shall contain
   43  on the face thereof a statement to such effect. Except for  purposes  of
   44  complying  with the internal revenue code, any interest income earned on
   45  bond proceeds shall only be used to pay debt service on such bonds.
   46    (b) Notwithstanding any provisions of law to the contrary, in order to
   47  assist the corporation in undertaking the administration  and  financing
   48  of  the  project authorized pursuant to subdivision (a) of this section,
   49  the director of the budget is hereby authorized to  enter  into  one  or
   50  more  service contracts with the corporation, none of which shall exceed
   51  more than twenty years in duration, upon such terms  and  conditions  as
   52  the  director of the budget and the corporation agree, so as to annually
   53  provide to the corporation in the aggregate, a sum  not  to  exceed  the
   54  annual debt service payments and related expenses required for the bonds
   55  and  notes issued pursuant to this section. Any service contract entered
   56  into pursuant to this subdivision shall provide that the  obligation  of
       S. 1406                            145                           A. 2106
 
    1  the state to pay the amount therein provided shall not constitute a debt
    2  of  the  state  within  the  meaning  of any constitutional or statutory
    3  provision and shall be deemed executory only to  the  extent  of  monies
    4  available  and  that  no liability shall be incurred by the state beyond
    5  the monies available for such purposes, subject to annual  appropriation
    6  by the legislature. Any such contract or any payments made or to be made
    7  thereunder  may  be  assigned and pledged by the corporation as security
    8  for its bonds and notes, as authorized by this section.
    9    § 25. Section 1285-p of  the  public  authorities  law,  as  added  by
   10  section  47  of  part K of chapter 81 of the laws of 2002, is amended to
   11  read as follows:
   12    § 1285-p. State environmental infrastructure  projects.  In  order  to
   13  effectuate  the  purposes  of this title, the corporation shall have the
   14  following additional special powers:
   15    1. Subject to chapter fifty-nine of the  laws  of  two  thousand,  but
   16  notwithstanding any other provisions of law to the contrary, in order to
   17  assist the corporation in undertaking the administration and the financ-
   18  ing of the design, acquisition, construction, improvement, installation,
   19  and related work for all or any portion of any of the following environ-
   20  mental  infrastructure  projects  and  for the provision of funds to the
   21  state for any amounts disbursed therefor: (a) projects authorized  under
   22  the  environmental protection fund, or for which appropriations are made
   23  to the environmental protection  fund  including,  but  not  limited  to
   24  municipal  parks  and historic preservation, state parks infrastructure,
   25  stewardship, farmland protection, non-point source,  pollution  control,
   26  Hudson  River Park, land acquisition, and waterfront revitalization; (b)
   27  department of  environmental  conservation  capital  appropriations  for
   28  Onondaga Lake for certain water quality improvement projects in the same
   29  manner as set forth in paragraph d of subdivision one of section 56-0303
   30  of  the environmental conservation law; [and] (c) for the purpose of the
   31  administration, management, maintenance, and use of the real property at
   32  the western New York nuclear service center; (d) department of  environ-
   33  mental  conservation  capital  appropriations  for  the  administration,
   34  design,  acquisition,  construction,  improvement,   installation,   and
   35  related  work  on department of environmental conservation environmental
   36  infrastructure projects; and (e) identification, classification,  inves-
   37  tigation and remediation of inactive hazardous waste disposal sites, and
   38  financing  the non-federal share of the cost of clean up, and site reme-
   39  diation activities pursuant to the federal  Comprehensive  Environmental
   40  Response,  Compensation  and  Liability Act of 1980, the director of the
   41  division of budget and the corporation are each authorized to enter into
   42  one or more service contracts, none of which shall exceed  twenty  years
   43  in  duration,  upon  such  terms  and conditions as the director and the
   44  corporation may agree, so as to annually provide to the  corporation  in
   45  the  aggregate, a sum not to exceed the annual debt service payments and
   46  related expenses required for any bonds and notes authorized pursuant to
   47  section twelve hundred  ninety  of  this  title.  Any  service  contract
   48  entered  into pursuant to this section shall provide that the obligation
   49  of the state to fund or to pay the amounts therein  provided  for  shall
   50  not  constitute  a debt of the state within the meaning of any constitu-
   51  tional or statutory provision and shall be deemed executory only to  the
   52  extent  of  moneys available for such purposes, subject to annual appro-
   53  priation by the legislature. Any such service contract or  any  payments
   54  made  or to be made thereunder may be assigned and pledged by the corpo-
   55  ration as security for its bonds and notes, as  authorized  pursuant  to
   56  section twelve hundred ninety of this title.
       S. 1406                            146                           A. 2106
 
    1    2.  The  comptroller  is  hereby authorized to receive from the corpo-
    2  ration any portion of bond proceeds paid to provide funds for  or  reim-
    3  burse  the  state  for its costs associated with any state environmental
    4  infrastructure projects and  to  credit  such  amounts  to  the  capital
    5  projects fund or any other appropriate fund.
    6    3.  The  maximum amount of bonds that may be issued for the purpose of
    7  financing  environmental  infrastructure  projects  authorized  by  this
    8  section  shall  be [one] two hundred [thirty-five] seventy-seven million
    9  dollars, exclusive of bonds issued to  fund  any  debt  service  reserve
   10  funds, pay costs of issuance of such bonds, and bonds or notes issued to
   11  refund  or  otherwise repay bonds or notes previously issued. Such bonds
   12  and notes of the corporation shall not be a debt of the state,  and  the
   13  state  shall not be liable thereon, nor shall they be payable out of any
   14  funds other than those appropriated by the state to the corporation  for
   15  debt  service  and  related  expenses  pursuant to any service contracts
   16  executed pursuant to subdivision one of this section, and such bonds and
   17  notes shall contain on the face thereof a statement to such effect.
   18    § 26. Section 48 of part K of chapter 81 of the laws of 2002, relating
   19  to providing for  the  administration  of  certain  funds  and  accounts
   20  related to the 2002-2003 budget, is amended to read as follows:
   21    § 48. (a) [Notwithstanding] Subject to the provisions of chapter 59 of
   22  the  laws  of  2000, but notwithstanding the provisions of section 18 of
   23  the urban development corporation act, the corporation is hereby author-
   24  ized to issue bonds or notes in one or more series in an aggregate prin-
   25  cipal amount not to exceed  [$15,000,000]  $25,000,000  excluding  bonds
   26  issued  to  fund one or more debt service reserve funds, to pay costs of
   27  issuance of such bonds, and bonds or notes issued to refund or otherwise
   28  repay such bonds or notes previously issued, for the purpose of  financ-
   29  ing capital costs related to homeland security for the division of state
   30  police,  the division of military and naval affairs, and any other state
   31  agency, including the reimbursement of any disbursements made  from  the
   32  state  capital projects fund, and is hereby authorized to issue bonds or
   33  notes in one or more series in an  aggregate  principal  amount  not  to
   34  exceed  [$12,000,000] $22,000,000, excluding bonds issued to fund one or
   35  more debt service reserve funds, to pay costs of issuance of such bonds,
   36  and bonds or notes issued to refund or otherwise  repay  such  bonds  or
   37  notes  previously  issued,  for the purpose of financing improvements to
   38  State office buildings and other facilities located statewide, including
   39  the reimbursement of any  disbursements  made  from  the  state  capital
   40  projects  fund.  Such  bonds and notes of the corporation shall not be a
   41  debt of the state, and the state shall not be liable thereon, nor  shall
   42  they  be  payable  out of any funds other than those appropriated by the
   43  state to the corporation for debt service and related expenses  pursuant
   44  to  any  service  contracts executed pursuant to subdivision (b) of this
   45  section, and such bonds and notes shall contain on the  face  thereof  a
   46  statement to such effect.
   47    Except  for  purposes of complying with the internal revenue code, any
   48  interest income earned on bond proceeds shall only be used to  pay  debt
   49  service on such bonds.
   50    (b) Notwithstanding any provisions of law to the contrary, in order to
   51  assist  the  corporation in undertaking the administration and financing
   52  of the project authorized pursuant to subdivision (a) of  this  section,
   53  the  director  of  the  budget is hereby authorized to enter into one or
   54  more service contracts with the corporation, none of which shall  exceed
   55  twenty years in duration, upon such terms and conditions as the director
   56  of  the  budget  and the corporation agree, so as to annually provide to
       S. 1406                            147                           A. 2106
 
    1  the corporation, in the aggregate, a sum not to exceed the  annual  debt
    2  service  payments  and related expenses required for the bonds and notes
    3  issued pursuant to this  section.  Any  service  contract  entered  into
    4  pursuant  to  this  subdivision shall provide that the obligation of the
    5  state to pay the amounts therein provided for  shall  not  constitute  a
    6  debt  of the state within the meaning of any constitutional or statutory
    7  provision and shall be deemed executory only to  the  extent  of  monies
    8  available  and  that  no liability shall be incurred by the state beyond
    9  the monies available for such purposes, subject to annual  appropriation
   10  by the legislature. Any such service contract or any payments made or to
   11  be  made  thereunder  may  be assigned and pledged by the corporation as
   12  security for its bonds and notes, as authorized by this section.
   13    § 27. Section 1680-i of  the  public  authorities  law,  as  added  by
   14  section  49  of  part K of chapter 81 of the laws of 2002, is amended to
   15  read as follows:
   16    § 1680-i. Judiciary; authority financing of  courthouse  improvements.
   17  1.    The  dormitory  authority is hereby authorized to finance eligible
   18  courthouse improvements.
   19    2. (a) Subject to the provisions of chapter fifty-nine of the laws  of
   20  two  thousand and to the making of annual appropriations therefor by the
   21  legislature, in order to assist the dormitory authority in providing for
   22  the financing of courthouse improvements, the director of the budget  is
   23  authorized in any state fiscal year commencing April first, two thousand
   24  two  or  any  state  fiscal  year  thereafter  to enter into one or more
   25  service contracts, none of which shall exceed thirty years in  duration,
   26  with  the  dormitory  authority,  upon such terms as the director of the
   27  budget and the dormitory authority agree.
   28    (b) Any service contract entered into pursuant  to  paragraph  (a)  of
   29  this  subdivision  or  any payments made or to be made thereunder may be
   30  assigned and pledged by the dormitory  authority  as  security  for  its
   31  bonds, notes, or other obligations.
   32    (c)  Any  such  service contracts shall provide that the obligation of
   33  the director of the budget or of the state to fund or to pay the amounts
   34  therein provided for shall not constitute a debt of the state within the
   35  meaning of any constitutional or statutory provision in  the  event  the
   36  dormitory  authority assigns or pledges the service contract payments as
   37  security for its bonds, notes, or other obligations and shall be  deemed
   38  executory  only to the extent monies are available and that no liability
   39  shall be incurred by the state  beyond  the  monies  available  for  the
   40  purpose, and that such obligation is subject to annual appropriations by
   41  the legislature.
   42    (d)  Any  service  contract or contracts entered into pursuant to this
   43  subdivision shall provide for state commitments to provide  annually  to
   44  the dormitory authority a sum or sums, upon such terms and conditions as
   45  shall  be  deemed appropriate by the director of the budget, to fund the
   46  principal, interest, or other related payments required for  any  bonds,
   47  notes,  or  other obligations of the dormitory authority issued pursuant
   48  to this section.
   49    3. (a) To obtain funds for the purposes of this section, the authority
   50  shall have power from time to time to issue negotiable bonds  or  notes.
   51  Unless  the context shall clearly indicate otherwise, whenever the words
   52  "bond" or "bonds" are used in this section, such words shall  include  a
   53  note or notes of the authority.
   54    (b)  The  dormitory authority shall not issue any bonds or notes in an
   55  amount in excess of [twenty] thirty-seven million  [eight]  six  hundred
   56  thousand  dollars  for  the purposes of this section; excluding bonds or
       S. 1406                            148                           A. 2106
 
    1  notes issued to fund one or more debt  service  reserve  funds,  to  pay
    2  costs  of issuance of such bonds, and bonds or notes issued to refund or
    3  otherwise repay such  bonds  or  notes  previously  issued.  Except  for
    4  purposes  of  complying  with the internal revenue code, any interest on
    5  bond proceeds shall only be used to pay debt service on such bonds.
    6    (c) In computing for the purposes of paragraph (b)  of  this  subdivi-
    7  sion,  the aggregate amount of indebtedness evidenced by bonds and notes
    8  of the dormitory authority issued pursuant to this title, there shall be
    9  excluded the amount of such indebtedness represented by  such  bonds  or
   10  notes  issued  to  refund or otherwise repay bonds or notes[,]; provided
   11  that the amount so excluded under this paragraph may exceed the  princi-
   12  pal  amount  of such bonds or notes that were issued to refund or other-
   13  wise repay only if the present value of the aggregate  debt  service  on
   14  the  refunding or repayment bonds or notes shall not have at the time of
   15  their issuance exceeded the present value of the aggregate debt  service
   16  of  the bonds or notes they were issued to refund or repay, such present
   17  value in each case being calculated by using the effective interest rate
   18  of the refunding or repayment bonds or notes, which shall be  that  rate
   19  arrived  at  by doubling the semi-annual interest rate (compounded semi-
   20  annually) necessary to discount the debt service payments on the refund-
   21  ing or repayment bonds or notes from the payment  date  thereof  to  the
   22  date  of  issue  of the refunding or repayment bonds or notes and to the
   23  price bid therefor, or to the proceeds received by the dormitory author-
   24  ity from the sale thereof, in  each  case  including  estimated  accrued
   25  interest.
   26    (d)  The state of New York hereby covenants with the purchasers, hold-
   27  ers, and owners from time to time of the bonds of the  authority  issued
   28  pursuant  to this section that it will not, subject to the provisions of
   29  paragraph (c) of  subdivision  two  of  this  section,  repeal,  revoke,
   30  rescind, modify, or amend the provisions of this section which relate to
   31  the  making  of  annual  service contract payments to the authority with
   32  respect to such bonds as to limit, impair,  or  impede  the  rights  and
   33  remedies  granted  to bondholders under this title or otherwise diminish
   34  the security pledged to such purchasers, holders, and owners or  signif-
   35  icantly impair the prospect of payment of any such bond.
   36    §  28.  Paragraph  j  of  subdivision  2 of section 1680 of the public
   37  authorities law, as added by section 30 of part K of chapter 81  of  the
   38  laws of 2002, is amended to read as follows:
   39    j.  [The]  Subject to the provisions of chapter fifty-nine of the laws
   40  of two thousand, the maximum amount of bonds  and  notes  to  be  issued
   41  after  March  thirty-first,  two thousand two for a housing unit for the
   42  use of students at a state-operated institution or statutory or contract
   43  college under the jurisdiction of the state university of New York shall
   44  be four hundred [five] twenty million  dollars.  Such  amount  shall  be
   45  exclusive  of  bonds and notes issued to fund any reserve fund or funds,
   46  costs of issuance, and to refund any outstanding bonds and notes  relat-
   47  ing  to a housing unit under the jurisdiction of the state university of
   48  New York.
   49    § 29. Subdivision 10-a of section 1680 of the public authorities  law,
   50  as  added  by section 31 of part K of chapter 81 of the laws of 2002, is
   51  amended to read as follows:
   52    10-a. [Notwithstanding] Subject to the provisions  of  chapter  fifty-
   53  nine  of  the  laws  of  two  thousand,  but  notwithstanding  any other
   54  provision of the law to the contrary, the maximum amount  of  bonds  and
   55  notes to be issued after March thirty-first, two thousand two, on behalf
   56  of  the  state,  in relation to any locally sponsored community college,
       S. 1406                            149                           A. 2106
 
    1  shall be [one] two hundred  [seventy-five]  ten  million  dollars.  Such
    2  amount  shall be exclusive of bonds and notes issued to fund any reserve
    3  fund or funds, costs of issuance and to refund any outstanding bonds and
    4  notes,  issued  on  behalf of the state, relating to a locally sponsored
    5  community college.
    6    § 30. Paragraph (c) of subdivision 14 of section 1680  of  the  public
    7  authorities law, as amended by section 33 of part B of chapter 57 of the
    8  laws of 1998, is amended to read as follows:
    9    (c)  (i)  [The] Subject to the provisions of chapter fifty-nine of the
   10  laws of two thousand, the dormitory authority shall not deliver a series
   11  of bonds for city university community  college  facilities,  except  to
   12  refund or to be substituted for or in lieu of other bonds in relation to
   13  city university community college facilities pursuant to a resolution of
   14  the  dormitory  authority  adopted  before  July first, nineteen hundred
   15  eighty-five or any resolution supplemental  thereto,  if  the  principal
   16  amount  of  bonds so to be issued when added to all principal amounts of
   17  bonds previously issued by the dormitory authority for  city  university
   18  community  college  facilities, except to refund or to be substituted in
   19  lieu of other bonds in relation to  city  university  community  college
   20  facilities  will  exceed  the  sum  of  four hundred twenty-five million
   21  dollars and (ii) the dormitory authority shall not deliver a  series  of
   22  bonds issued for city university facilities, including community college
   23  facilities,  pursuant to a resolution of the dormitory authority adopted
   24  on or after July first, nineteen hundred eighty-five, except  to  refund
   25  or  to  be substituted for or in lieu of other bonds in relation to city
   26  university facilities and except for bonds issued pursuant to  a  resol-
   27  ution  supplemental  to  a resolution of the dormitory authority adopted
   28  prior to July first, nineteen  hundred  eighty-five,  if  the  principal
   29  amount  of  bonds  so to be issued when added to the principal amount of
   30  bonds previously issued pursuant to any such  resolution,  except  bonds
   31  issued  to  refund or to be substituted for or in lieu of other bonds in
   32  relation to city university facilities, will exceed [three] four billion
   33  [four] two hundred [fifteen] million dollars. The  legislature  reserves
   34  the  right to amend or repeal such limit, and the state of New York, the
   35  dormitory authority, the city university, and the  fund  are  prohibited
   36  from  covenanting or making any other agreements with or for the benefit
   37  of bondholders which might in any way affect such right.
   38    § 31. Paragraph (c) of subdivision 19 of section 1680  of  the  public
   39  authorities law, as amended by section 34 of part B of chapter 57 of the
   40  laws of 1998, is amended to read as follows:
   41    (c)  [The] Subject to the provisions of chapter fifty-nine of the laws
   42  of two thousand, the dormitory authority shall not issue any  bonds  for
   43  state university educational facilities purposes if the principal amount
   44  of  bonds  to  be issued when added to the aggregate principal amount of
   45  bonds issued by the dormitory authority on and after July  first,  nine-
   46  teen  hundred  eighty-eight  for state university educational facilities
   47  will exceed [three] four billion [two] seven  hundred  million  dollars;
   48  provided,  however,  that bonds issued or to be issued shall be excluded
   49  from such limitation if: (1) such  bonds  are  issued  to  refund  state
   50  university  construction  bonds  and state university construction notes
   51  previously issued by the housing finance agency; or (2) such  bonds  are
   52  issued  to refund bonds of the authority or other obligations issued for
   53  state university educational facilities purposes and the  present  value
   54  of the aggregate debt service on the refunding bonds does not exceed the
   55  present value of the aggregate debt service on the bonds refunded there-
   56  by;  provided,  further  that  upon certification by the director of the
       S. 1406                            150                           A. 2106
 
    1  budget that the issuance of refunding bonds or other obligations  issued
    2  between April first, nineteen hundred ninety-two and March thirty-first,
    3  nineteen  hundred ninety-three will generate long term economic benefits
    4  to  the  state, as assessed on a present value basis, such issuance will
    5  be deemed to have met the present value test noted above.  For  purposes
    6  of  this subdivision, the present value of the aggregate debt service of
    7  the refunding  bonds  and  the  aggregate  debt  service  of  the  bonds
    8  refunded, shall be calculated by utilizing the true interest cost of the
    9  refunding  bonds,  which  shall  be that rate arrived at by doubling the
   10  semi-annual  interest  rate  (compounded  semi-annually)  necessary   to
   11  discount  the  debt  service  payments  on  the refunding bonds from the
   12  payment dates thereof to the date of issue of the refunding bonds to the
   13  purchase price of the refunding bonds, including interest accrued there-
   14  on prior to the issuance thereof. The maturity of such bonds, other than
   15  bonds issued to refund outstanding bonds, shall not exceed the  weighted
   16  average economic life, as certified by the state university construction
   17  fund,  of  the facilities in connection with which the bonds are issued,
   18  and in any case not later than the earlier of thirty years or the  expi-
   19  ration  of  the  term of any lease, sublease or other agreement relating
   20  thereto; provided that no note, including renewals thereof, shall mature
   21  later than five years after the date of issuance  of  such  note.    The
   22  legislature  reserves  the  right to amend or repeal such limit, and the
   23  state of New York, the dormitory authority, the state university of  New
   24  York,  and  the  state  university construction fund are prohibited from
   25  covenanting or making any other agreements with or for  the  benefit  of
   26  bondholders which might in any way affect such right.
   27    § 32. The state finance law is amended by adding a new section 97-cccc
   28  to read as follows:
   29    §  97-cccc.  Interest  assessment  surcharge  fund. 1. There is hereby
   30  established in the joint custody of the  commissioner  of  taxation  and
   31  finance  and  the  state comptroller a fund to be known as the "interest
   32  assessment surcharge fund".
   33    2. The interest assessment surcharge fund shall consist of all  moneys
   34  collected  and  received  by the commissioner from employers pursuant to
   35  section five hundred eighty-one-d of  the  labor  law  and  of  interest
   36  earned upon moneys belonging to such fund and deposited or invested. All
   37  moneys  so  collected  shall  be  deposited  in a bank, trust company or
   38  industrial bank designated by the state comptroller. Moneys so deposited
   39  shall be credited immediately to the account of the interest  assessment
   40  surcharge  fund  and  shall  be  used for the purposes set forth in this
   41  section. Moneys in such fund may be invested by the state comptroller in
   42  accordance with the provisions of section ninety-eight of this  article,
   43  and  shall  be  used  for  the  purposes  specified in this section. Any
   44  balance in such fund shall  not  lapse  but  shall  remain  continuously
   45  available for such purposes until full interest payments are paid to the
   46  federal government in accordance with the provisions of this section.
   47    3.  Moneys  in  the  interest  assessment surcharge fund shall be kept
   48  separate from and shall not be commingled with any other moneys  in  the
   49  custody  of the commissioner of taxation and finance and the state comp-
   50  troller. All deposits of such moneys shall, if  required  by  the  state
   51  comptroller,  be  secured by obligations of the United States or of this
   52  state of market value equal at all times to the amount  of  the  deposit
   53  and all banks and trust companies are authorized to give such securities
   54  for such deposits.
   55    4.  Moneys  of  the  fund shall be used exclusively for the purpose of
   56  paying interest due on advances from the  federal  unemployment  account
       S. 1406                            151                           A. 2106
 
    1  under  Title  XII of the Social Security Act (42 U.S. Code Sections 1321
    2  to 1324) and thereafter  crediting  employer  accounts  as  provided  in
    3  section  five hundred eighty-one-d of the labor law. The moneys shall be
    4  paid out of the fund on the audit and warrant of the state comptroller.
    5    5.  The  interest assessment surcharge fund shall not be used in whole
    6  or in part for any purpose or in any manner which (a) would  permit  its
    7  substitution  for,  or  a corresponding reduction in, federal funds that
    8  would be available in its absence to finance expenditures for the admin-
    9  istration of this article; or (b) would cause the appropriate agency  of
   10  the  United  States government to withhold any part of an administrative
   11  grant which would otherwise be made.
   12    § 33. The labor law is amended by adding a new section 581-d  to  read
   13  as follows:
   14    §  581-d.  Contributions to the interest assessment surcharge fund. 1.
   15  Each employer that is liable for contributions under this article  shall
   16  pay  an assessment to the commissioner at a rate established annually by
   17  the commissioner sufficient to pay interest due  on  advances  from  the
   18  federal  unemployment account under Title XII of the Social Security Act
   19  (42 U.S. Code Sections 1321 to 1324) during any period that such  inter-
   20  est  will  accrue.  The  rate  shall  be  applied to wages as defined in
   21  section five hundred eighteen of this article effective as of the begin-
   22  ning of the first calendar quarter of the  year  such  interest  becomes
   23  due.  The  commissioner  shall  establish  the  necessary procedures for
   24  payment of such assessments. The amounts received  by  the  commissioner
   25  based  on such assessments shall be paid over and credited to the inter-
   26  est assessment surcharge fund. At such time that the commissioner deter-
   27  mines that this assessment is no longer necessary, any amount  remaining
   28  from such assessments, after all such federal interest charges have been
   29  paid,  shall be deposited into the unemployment insurance trust fund and
   30  credited to employer accounts. Such credits shall be determined based on
   31  the percentage of each employer's wages to the total statewide wages  of
   32  the  payroll  year  and  credited  to  each employer's account as of the
   33  computation date of the year prior to which  such  assessment  shall  no
   34  longer  be levied. The provisions of law applicable to the collection of
   35  contributions shall apply to the collection of such assessments.
   36    § 34. Section 69-c of the state finance law, as amended by  a  chapter
   37  of  the laws of 2003 amending the state finance law relating to variable
   38  rate debt instruments, as proposed in legislative  bills  numbers  S.528
   39  and A.1218, is amended to read as follows:
   40    §  69-c.  Variable  rate bonds. Notwithstanding any other provision of
   41  law to the contrary, any State-supported debt may be issued as  variable
   42  rate bonds.  Notwithstanding any other provision of law to the contrary,
   43  for purposes of calculating the present value of debt service and calcu-
   44  lating  savings  in  connection  with  the issuance of refunding indebt-
   45  edness, (i) the effective interest rate  and  debt  service  payable  on
   46  variable rate bonds in connection with which, and to the extent that, an
   47  authorized  issuer has entered into an interest rate exchange or similar
   48  agreement pursuant to which the authorized issuer makes  payments  based
   49  on  a  fixed rate and receives payments based on a variable rate that is
   50  reasonably expected by such authorized issuer to be equivalent over time
   51  to the variable rate paid on the related variable rate bonds,  shall  be
   52  calculated  assuming  that  the  rate  of interest on such variable rate
   53  bonds is the fixed rate payable by the authorized issuer on such  inter-
   54  est  rate  exchange  or similar agreement for the scheduled term of such
   55  agreement; (ii) the effective interest rate and debt service on variable
   56  rate bonds in connection with which, and to the extent that, an  author-
       S. 1406                            152                           A. 2106
 
    1  ized issuer has not entered into such an interest rate exchange or simi-
    2  lar  agreement  shall be calculated assuming that interest on such vari-
    3  able interest rate bonds is  payable  at  a  rate  or  rates  reasonably
    4  assumed  by  the  authorized  issuer; [and] (iii) the effective interest
    5  rate and debt service on any bonds  subject  to  optional  or  mandatory
    6  tender  shall  be  calculated  assuming  that  such bonds are remarketed
    7  following any such tender at a rate or rates reasonably assumed  by  the
    8  authorized  issuer;  and (iv) otherwise, the effective interest rate and
    9  debt service on any bonds shall be calculated at a rate or rates reason-
   10  ably  assumed  by  the  authorized  issuer.  Notwithstanding  any  other
   11  provision  of  law to the contrary, for calculating the present value of
   12  debt service and calculating savings in connection within  the  issuance
   13  of  refunding  indebtedness, the refunding of variable rate debt instru-
   14  ments with new variable rate debt instruments shall be excluded from any
   15  such requirements, if effectuated for sound business purposes.
   16    § 35. Subdivision 1 of section 69-d of the state finance law, as added
   17  by section 38 of part K of chapter 81 of the laws of 2002, is amended to
   18  read as follows:
   19    1. Authorized issuer; powers.  In  connection  with  the  issuance  of
   20  State-supported  debt,  or  in connection with such State-supported debt
   21  already outstanding, an authorized issuer shall have the power to:
   22    (a) enter into interest rate exchange or similar agreements  with  any
   23  person  under  such  terms  and  conditions as the authorized issuer may
   24  determine, including provisions as to default or early  termination  and
   25  indemnification  by the authorized issuer or any other party thereto for
   26  loss of benefits as a result thereof;
   27    (b) procure insurance, letters of credit or other  credit  enhancement
   28  with  respect  to agreements described in paragraph (a) of this subdivi-
   29  sion;
   30    (c) provide security for the payment or performance of its obligations
   31  with respect to agreements described in paragraph (a) of  this  subdivi-
   32  sion  from  such  sources  and  with the same effect as is authorized by
   33  applicable law with respect to security for its bonds,  notes  or  other
   34  obligations, provided, however, that any payment or performance of obli-
   35  gations  with  respect  to agreements described in paragraph (a) of this
   36  subdivision in connection with debt obligations  which  carry  the  full
   37  faith and credit of the state shall be subject to appropriation;
   38    (d)  the  state,  acting  through  the director of the budget or other
   39  state officials who are so authorized by applicable law with respect  to
   40  such  bonds,  notes  or  other  obligations, shall also be authorized to
   41  enter into or amend agreements related to such State-supported  debt  to
   42  provide for payment, subject to appropriation, to such authorized issuer
   43  of  any  amounts required to be paid by such authorized issuer under any
   44  such interest rate exchange or similar agreement; [and]
   45    (e) if such funds are available, provide collateral for its own  obli-
   46  gations under any such interest rate exchange or similar agreement; and
   47    (f) modify, amend, or replace, such agreements.
   48    §  36.  Paragraph  (f)  of  subdivision 2 of section 69-d of the state
   49  finance law, as added by section 38 of part K of chapter 81 of the  laws
   50  of 2002, is amended to read as follows:
   51    (f)  each  interest  rate exchange or similar agreement, including the
   52  modification or termination thereof, shall be subject to the approval of
   53  the director of the budget[,] and the governing board of such authorized
   54  issuer, and shall not be considered a project for the purposes of  arti-
   55  cle  one-A  of  the public authorities law.   In addition, the governing
       S. 1406                            153                           A. 2106
 
    1  board of an authorized issuer may delegate  such  matters  necessary  or
    2  advisable for the negotiation and execution of such agreements.
    3    § 37. Section 67-b of the state finance law is amended by adding a new
    4  subdivision 5 to read as follows:
    5    5.  The  provisions  of  this  section  shall not apply to debt issued
    6  pursuant to section nine of article seven of the state constitution.
    7    § 38. Subdivisions 1 and 2 of section 67-b of the state  finance  law,
    8  as  added  by  chapter  59  of  the laws of 2000, are amended to read as
    9  follows:
   10    1. (a) State-supported debt may not be contracted for  unless,  as  of
   11  October  thirty-first,  two  thousand one and as of each October thirty-
   12  first thereafter, the total outstanding principal amount of  such  debt,
   13  as  of  the  last  day of the immediately preceding fiscal year, is less
   14  than the designated percentage of  the  total  personal  income  of  the
   15  state.  Nothing  shall  preclude the contracting of state-supported debt
   16  prior to October thirty-first of each year if, as of the last day of the
   17  immediately preceding  fiscal  year,  the  total  outstanding  principal
   18  amount of such debt was less than the designated percentage of the total
   19  personal  income of the state. The total outstanding principal amount of
   20  debt shall include all state-supported debt issued on  and  after  April
   21  first,  two thousand. Such designated percentage shall be seven and one-
   22  half-tenths of one percent for fiscal year  two  thousand--two  thousand
   23  one, and shall increase by five-tenths of one percent in fiscal year two
   24  thousand  one--two  thousand  two,  by  an additional four-tenths of one
   25  percent in fiscal year two thousand two--two thousand three, and  by  an
   26  additional  one-third  of  one  percent  in each of the seven subsequent
   27  fiscal years. The designated percentage for  fiscal  year  two  thousand
   28  ten--two  thousand  eleven  and for each fiscal year thereafter shall be
   29  four percent.
   30    (b) If state-supported debt is issued to refund  or  otherwise  affect
   31  the  refunding,  retirement  or defeasance of [previously-issued] state-
   32  supported debt originally issued on and after April first, two thousand,
   33  provided such refundings are conducted in accordance with section  thir-
   34  teen  of article VII of the state constitution, [the amount of refunding
   35  debt in excess of the amount of debt to be so refunded shall be excluded
   36  from] the calculation of the total outstanding principal amount of  debt
   37  shall  exclude such refunding debt, and shall only include the amount of
   38  prior refunded debt, as if it were still outstanding, in each year until
   39  such refunding debt is finally retired. [In addition, if]  Notwithstand-
   40  ing  the  foregoing,  the provisions of such section thirteen of article
   41  VII of the state constitution relating to the maintenance or  management
   42  of escrow funds and sinking funds shall only be applicable to state-sup-
   43  ported  debt issued by the state comptroller. If state-supported debt is
   44  issued to refund or otherwise affect the refunding, retirement or defea-
   45  sance of state-supported debt issued prior to April first, two thousand,
   46  then the amount of such refunding debt shall be excluded from the calcu-
   47  lation of the total outstanding principal amount of debt  in  each  year
   48  until  such  refunding  debt is finally retired.  In addition, if state-
   49  supported debt is retired or defeased with payments in any  fiscal  year
   50  made by the state that are not required by mandatory payments, such debt
   51  shall  be excluded from the calculation of the total outstanding princi-
   52  pal amount of debt, including retirements or defeasances accomplished on
   53  an economic basis.
   54    2. State-supported debt may not be contracted for unless, as of  Octo-
   55  ber  thirty-first,  two thousand one and as of each October thirty-first
   56  thereafter, the total amount of  interest,  installments  of  principal,
       S. 1406                            154                           A. 2106
 
    1  contributions  to sinking funds, and related payments on a cash basis of
    2  accounting for state-supported debt in the immediately preceding  fiscal
    3  year  is less than the designated percentage of total governmental funds
    4  receipts for such fiscal year. Nothing shall preclude the contracting of
    5  state-supported  debt  prior to October thirty-first of each year if, in
    6  the immediately preceding fiscal year, the  total  amount  of  interest,
    7  installments  of  principal, contributions to sinking funds, and related
    8  payments was less than the designated percentage of  total  governmental
    9  funds  receipts. This shall include the total amount of payments on such
   10  debt issued on and after  April  first,  two  thousand,  but  shall  not
   11  include  payments  in  any  fiscal  year made by the state to defease or
   12  retire debt not required by mandatory payments nor payments made by  the
   13  state  for  debt  issued  to  refund debt that was issued prior to April
   14  first, two thousand.  In addition, if state-supported debt is issued  to
   15  refund  or  otherwise  affect the refunding, retirement or defeasance of
   16  state-supported debt originally issued on and  after  April  first,  two
   17  thousand,  provided  such  refundings  are  conducted in accordance with
   18  section thirteen of article VII of the state  constitution,  the  calcu-
   19  lation  of  the  total  amount  of  interest, installments of principal,
   20  contributions to sinking  funds,  and  related  payments  shall  exclude
   21  payments  made  on  such  refunding  debt,  and  shall  only include the
   22  payments on the prior refunded debt, as if it were still outstanding, in
   23  each year until such refunding debt is finally retired. Such  designated
   24  percentage  shall be seven and one-half-tenths of one percent for fiscal
   25  year two thousand--two thousand one, and shall increase  by  five-tenths
   26  of  one percent in fiscal year two thousand one--two thousand two, by an
   27  additional four-tenths of one percent in fiscal year two thousand  two--
   28  two  thousand  three,  and  by an additional one-third of one percent in
   29  each of the ten subsequent fiscal years. The designated  percentage  for
   30  fiscal  year  two  thousand thirteen--two thousand fourteen and for each
   31  fiscal year thereafter shall be five percent.
   32    § 39. Paragraph (b) of subdivision 1 of section  1290  of  the  public
   33  authorities  law,  as  amended  by  chapter  55  of the laws of 1992, is
   34  amended to read as follows:
   35    (b) The corporation shall have power, from  time  to  time,  to  issue
   36  renewal notes, to issue bonds to pay notes and whenever it deems refund-
   37  ing expedient, to refund any bonds by the issuance of new bonds, whether
   38  the  bonds  to  be refunded have or have not matured, and to issue bonds
   39  partly to refund bonds  then  outstanding,  and  partly  for  any  other
   40  purpose.  The  refunding bonds shall be sold and the proceeds applied to
   41  the purchase, redemption or payment of  the  bonds  to  be  refunded[;].
   42  Notwithstanding  any statutory ceiling on outstanding bonds, any refund-
   43  ing bonds shall be  sold  in  the  amount  required  to  pay  or  redeem
   44  outstanding  bonds,  to fund any reserve, escrow or payment fund, and to
   45  provide for the payment of all fees  and  other  charges  and  expenses,
   46  including costs of issuance, incurred in connection with the issuance of
   47  such  refunding  bonds, provided that the present value of the aggregate
   48  debt service on the refunding bonds does not exceed the present value of
   49  the aggregate debt service on the bonds refunded thereby.
   50    § 40. Subparagraph 3 of paragraph (e) of  subdivision  19  of  section
   51  1680  of the public authorities law, as added by section 15 of part D of
   52  chapter 389 of the laws of 1997, is amended to read as follows:
   53    (3) on such day or days as shall be prescribed under any  such  lease,
   54  sublease,  or  other  agreement,  the  amount required to be paid by the
   55  state university construction fund for the purpose  of  making  payments
   56  under  any  interest  rate  exchange  or similar agreements entered into
       S. 1406                            155                           A. 2106
 
    1  pursuant to [section twenty-nine hundred  twenty-six  of  this  chapter]
    2  article five-D of the state finance law for state university educational
    3  facilities.
    4    §  41. Notwithstanding any law to the contrary, and in accordance with
    5  section 4 of the state finance law, the comptroller is hereby authorized
    6  and directed, upon request of the director of the budget, to transfer up
    7  to $330,000,000 from the federal operating grants  fund  -  290  to  the
    8  Tobacco  Control  and  Insurance  Initiatives Pool, on or after April 1,
    9  2004.
   10    § 42. The second undesignated paragraph of subdivision  1  of  section
   11  98-a  of  the state finance law, as separately amended by chapter 705 of
   12  the laws of 1993 and chapter 83 of the laws of 1995, is amended to  read
   13  as follows:
   14    Notwithstanding  the  provisions of paragraph (b) of this subdivision,
   15  the comptroller in consultation with the director of  the  budget  shall
   16  credit  or  charge  interest  to  fund/accounts  which are authorized to
   17  receive temporary loans if so requested by the state department or divi-
   18  sion responsible for such fund/account within thirty days of the  begin-
   19  ning  of each fiscal year or thirty days following the final approval of
   20  any bill containing language authorizing such temporary loans, whichever
   21  is later, and interest must be credited or charged from the first day of
   22  such fiscal year. Within ten days of the beginning of  each  month,  the
   23  comptroller shall credit or charge interest to such funds/accounts based
   24  upon   the  average  daily  balance  of  the  preceding  month  of  such
   25  funds/accounts and shall provide notification to  the  director  of  the
   26  budget  and the chairs of the senate finance and assembly ways and means
   27  committees of such funds/accounts to be credited or charged interest.
   28    § 43. There is hereby established in the custody of  the  state  comp-
   29  troller a special fund, to be known as the "Harriman state office campus
   30  development  account".  Such  fund  shall  consist  of  all revenues and
   31  proceeds paid to or collected by the state from the  transfer,  disposi-
   32  tion, rental, lease or sale of state lands including lesser interests in
   33  such  lands  at  the W. Averell Harriman State Office Building Campus in
   34  Albany. Any income earned on monies within the fund shall  be  added  to
   35  and  made  available  for  the purposes of such fund. Monies of the fund
   36  shall be available to the commissioner of general services for payments,
   37  fees and other costs associated with the redevelopment of the W. Averell
   38  Harriman State Office Building Campus,  and  in  consultation  with  the
   39  director  of  the budget, the commissioner may expend monies of the fund
   40  to facilitate the redevelopment activities  of  a  public  authority  or
   41  public  benefit corporation charged with oversight and management of the
   42  redevelopment of the W. Averell Harriman State Office  Campus.  Payments
   43  from  such  fund shall be made upon audit and warrant of the state comp-
   44  troller upon vouchers certified  or  approved  by  the  commissioner  of
   45  general services in the manner provided by law.
   46    §  44. Section 51 of the public authorities law is amended by adding a
   47  new subdivision 1-a to read as follows:
   48    1-a. Board approval shall not be required for indebtedness incurred by
   49  a public benefit corporation subject to the provisions of  this  section
   50  for the purpose of refunding state supported debt, as defined by section
   51  sixty-seven-a of the state finance law.
   52    §  45.  Severability. If any clause, sentence, paragraph, subdivision,
   53  section, or part of this act shall be adjudged by any court of competent
   54  jurisdiction to be invalid, such judgment shall not affect,  impair,  or
   55  invalidate the remainder thereof, but shall be confined in its operation
   56  to the clause, sentence, paragraph, subdivision, section, or part there-
       S. 1406                            156                           A. 2106
 
    1  of  directly  involved  in  the controversy in which such judgment shall
    2  have been rendered. It is hereby declared to be the intent of the legis-
    3  lature that this act would  have  been  enacted  even  if  such  invalid
    4  provisions had not been included herein.
    5    §  46.  This  act shall take effect immediately and shall be deemed to
    6  have been in full force and effect on and after April 1, 2003; provided,
    7  however, that sections one, three,  four,  eight  through  sixteen,  and
    8  eighteen  of  this  act shall expire March 31, 2004, when upon such date
    9  the provisions of such sections shall be deemed repealed;  and  provided
   10  further  that  section  thirty-four of this act shall take effect on the
   11  effective date of this act or on the same date as a chapter of the  laws
   12  of  2003  amending  the state finance law relating to variable rate debt
   13  instruments, as proposed in legislative bills  numbers  S.  528  and  A.
   14  1218, takes effect, whichever shall occur later, and the amendments made
   15  to  section 69-c of the state finance law by section thirty-four of this
   16  act shall not affect the expiration and repeal of such section and shall
   17  be deemed to be expired therewith.
 
   18                                   PART DD
 
   19    Section 1. The tobacco settlement financing corporation act is enacted
   20  to read as follows:
 
   21                Tobacco Settlement Financing Corporation Act
 
   22  Section 1.  Short title.
   23          2.  The tobacco settlement financing corporation.
   24          3.  Definitions.
   25          4.  The sale agreement.
   26          5.  Powers of the corporation.
   27          6.  Bonds of the corporation.
   28          7.  State not liable on bonds or any ancillary bond facility.
   29          8.  Remedies of bondholders.
   30          9.  Exemption from taxation.
   31          10. Agreement with state.
   32          11. Bonds as legal investments.
   33          12. Actions against the corporation.
   34          13. Assistance to the corporation.
   35          14. Preference for actions or  proceedings  against  the  corpo-
   36              ration.
   37          15. Construction.
   38          16. Severability clause.
   39    Section  1.  Short title.  This act shall be known and may be cited as
   40  the "tobacco settlement financing corporation act".
   41    § 2.  The tobacco settlement financing corporation.   There is  hereby
   42  created and established a subsidiary of the authority to be known as the
   43  "tobacco  settlement  financing  corporation" as a public benefit corpo-
   44  ration, separate and apart from the state.  The directors of the author-
   45  ity shall serve as the members of the corporation and shall  receive  no
   46  additional  salary or other compensation, either direct or indirect, for
   47  serving as members of the  corporation,  other  than  reimbursement  for
   48  actual  and  necessary  expenses  incurred  in  the  performance of such
   49  person's duties.  Any one or more members of the board  may  participate
   50  in a meeting of such board by means of a conference telephone or similar
   51  communications equipment allowing all persons participating in the meet-
   52  ing  to  hear  each  other at the same time. Participation by such means
       S. 1406                            157                           A. 2106
 
    1  shall constitute presence in person at a meeting.  The  corporation  may
    2  delegate  to one or more of its members, or officers, agents and employ-
    3  ees, such powers and duties as the members may deem proper.   Except  as
    4  otherwise expressly provided by this act, actions by the corporation and
    5  the  members  of  its  board,  and exercise of the corporation's powers,
    6  shall be taken in the same manner and subject to the same  requirements,
    7  as  are  set  forth or imposed under chapter 902 of the laws of 1972, as
    8  amended, for such actions and  performance  by  the  authority  and  its
    9  directors.    Notwithstanding  the  existence  of common management, the
   10  corporation shall be treated as a separate legal entity with  its  sepa-
   11  rate  corporate  purpose  as  set forth in section six of this act; and,
   12  accordingly, the assets, liabilities and funds of the corporation  shall
   13  be neither consolidated nor commingled with those of the authority.  The
   14  corporation  and its corporate existence shall continue until six months
   15  after all its liabilities have been met or otherwise discharged.    Upon
   16  the  termination  of the existence of the corporation, all of its rights
   17  and property shall pass to and be vested in the state.
   18    § 3.  Definitions.  1. "Ancillary bond facility"  means  any  interest
   19  rate  exchange or similar agreement or any bond insurance policy, letter
   20  of credit or other  credit  enhancement  facility,  liquidity  facility,
   21  guaranteed investment or reinvestment agreement, or other similar agree-
   22  ment, arrangement or contract.
   23    2.  "Authority" means the state of New York municipal bond bank agency
   24  established in section 2433 of the public authorities law.
   25    3. "Benefited party" means any person, firm or corporation that enters
   26  into an ancillary bond facility with the corporation  according  to  the
   27  provisions of this act.
   28    4. "Board" means the members of the corporation.
   29    5.  "Bonds"  means any bonds, notes, certificates of participation and
   30  other evidence of indebtedness issued by  the  corporation  pursuant  to
   31  section six of this act.
   32    6.  "Code"  means  the United States Internal Revenue Code of 1986, as
   33  amended.
   34    7. "Complementary legislation" means any  legislation  passed  by  the
   35  state complementary to the qualifying statute, including but not limited
   36  to:  (1)  section  480-b  of the tax law, which: (a) requires that every
   37  tobacco product manufacturer as defined by the qualifying statute  whose
   38  cigarettes are sold for consumption in this state shall annually certify
   39  that  such  tobacco product manufacturer is (i) a participating manufac-
   40  turer, and/or (ii) in compliance with the qualifying  statute;  and  (b)
   41  prohibits any agent who affixes state cigarette tax stamps to cigarettes
   42  to  affix such stamps if either (i) the tobacco product manufacturer has
   43  not provided such agent with the required certification above,  or  (ii)
   44  the  commissioner  of  taxation and finance has notified such agent that
   45  such tobacco product manufacturer is  in  violation  of  the  qualifying
   46  statute,  (2)  section  481  of the tax law, providing for penalties for
   47  possessing unstamped or unlawfully stamped cigarettes, and  (3)  section
   48  1846  of  the  tax law, providing for seizure of unstamped or unlawfully
   49  stamped cigarettes.
   50    8. "Consent decree" means the consent decree and final judgment of the
   51  supreme court of the state of New York, county of New York, dated Decem-
   52  ber 23, 1998, as the same has been and  may  be  corrected,  amended  or
   53  modified,  in  the  class  action  entitled State of New York, et al. v.
   54  Philip Morris Incorporated, et al. (Index No. 400361/97).
   55    9. "Costs of issuance" means any item of expense directly or indirect-
   56  ly payable or reimbursable by the corporation and related to the author-
       S. 1406                            158                           A. 2106
 
    1  ization, sale, or issuance of bonds,  including,  but  not  limited  to,
    2  underwriting  fees and fees and expenses of professional consultants and
    3  fiduciaries.
    4    10.  "Director  of the budget" means the director of the budget of the
    5  state of New York.
    6    11. "Financing costs" means all costs of issuance, capitalized  inter-
    7  est,  capitalized  operating  expenses  and debt service reserves, fees,
    8  cost of any ancillary bond facility, and any other  fees,  expenses  and
    9  costs related to issuing, securing and marketing the bonds.
   10    12.  "Investment  securities"  means, subject to the provisions of any
   11  contract with bondholders of the corporation,  (i)  general  obligations
   12  of,  or  obligations  guaranteed  by,  any state of the United States of
   13  America or political subdivision thereof, or the District of Columbia or
   14  any agency or instrumentality of any of them, receiving one of the three
   15  highest long-term unsecured debt rating categories  available  for  such
   16  securities  of  at  least one independent rating agency, or (ii) certif-
   17  icates of deposit, savings accounts, time deposits or other  obligations
   18  or  accounts  of  banks or trust companies in the state, secured, if the
   19  corporation shall so require, in such manner as the corporation  may  so
   20  determine,  or  (iii)   otherwise, in the discretion of the corporation,
   21  obligations in which the comptroller is authorized to  invest,  pursuant
   22  to either section 98 or 98-a of the state finance law.
   23    13.  "Interest  rate  exchange  or  similar agreement" means a written
   24  contract entered into in connection with the issuance of bonds  or  with
   25  such bonds outstanding with a counterparty to provide for an exchange or
   26  swap  of  payments  based upon fixed and/or variable interest rates, and
   27  shall be for exchanges in currency of the United States of America only.
   28    14. "Master settlement agreement" means the master  settlement  agree-
   29  ment, dated November 23, 1998, among the attorneys general of 46 states,
   30  including the state, the District of Columbia, the Commonwealth of Puer-
   31  to  Rico, Guam, the United States Virgin Islands, American Samoa and the
   32  Territory of the Northern Mariana Islands, on the one hand, and  certain
   33  tobacco manufacturers, on the other hand, and the subject of the consent
   34  decree.
   35    15. "Member" means any director of the authority including each person
   36  that  has  been duly appointed to represent such director at meetings of
   37  the authority from which such director may be absent.
   38    16. "Net proceeds" means the amount of  proceeds  remaining  following
   39  each  sale  of bonds which are not required by the corporation to pay or
   40  provide for the financing costs.
   41    17. "Operating expenses" means the reasonable or  necessary  operating
   42  expenses  of the corporation, including, without limitation, administra-
   43  tive expenses of the corporation or authority, the cost  of  preparation
   44  of  accounting and other reports, costs of maintenance of the ratings on
   45  the bonds, funding of any operating expense reserve fund, if any, insur-
   46  ance premiums, costs of any ancillary  bond  facilities,  and  costs  of
   47  annual  meetings  or  other  required activities of the corporation, and
   48  fees and expenses incurred for professional consultants and fiduciaries.
   49    18. "Other  assets"  means  assets  and/or  revenues,  constituting  a
   50  portion  of  the state's share, other than the pledged tobacco revenues,
   51  that are purchased pursuant to the sale agreement  and  pledged  by  the
   52  corporation for the payment of bonds or an ancillary bond facility.
   53    19.  "Other  participating  jurisdictions"  means the fifty-seven (57)
   54  counties of the state and the city of New York, which together with  the
   55  state, are subject to the consent decree.
       S. 1406                            159                           A. 2106
 
    1    20.  "Outstanding",  when  used  with  respect to bonds, shall exclude
    2  bonds that shall have been paid in  full  at  maturity,  or  shall  have
    3  otherwise  been  refunded, redeemed, defeased or discharged, or that may
    4  be deemed not outstanding pursuant to agreements with the holders there-
    5  of.
    6    21.  "Participating manufacturer" means a tobacco product manufacturer
    7  that is or becomes a signatory to the master settlement agreement.
    8    22. "Pledged tobacco revenues" means each such portion of the  state's
    9  share  constituting  tobacco settlement payments sold to the corporation
   10  pursuant to section four of this act and pledged by the corporation  for
   11  the payment of bonds or an ancillary bond facility.
   12    23. "Qualifying statute" has the meaning given that term in the master
   13  settlement agreement, constituting article 13-G of the public health law
   14  of the state, effective November 27, 1999.
   15    24. "Residual interests" means the income of the corporation, and bond
   16  proceeds, if any, or reserves not previously paid to the state, that are
   17  in  excess  of  the  corporation's  requirements  to  pay  its operating
   18  expenses, debt service, sinking fund or other  redemption  requirements,
   19  reserve fund, and any other contractual obligations under any resolution
   20  or  any  ancillary  bond  facility or that may be incurred in connection
   21  with the issuance of the bonds.
   22    25. "Sale agreement" means any agreement authorized pursuant  to  this
   23  section  in which the state provides for the sale of all or a portion of
   24  the state's share to the corporation.
   25    26. "State" means the state of New York.
   26    27.  "State representative" means the governor  of  the  state  acting
   27  through the director of the budget.
   28    28.  "State's share" means all tobacco settlement payments received by
   29  the state on and after April 1, 2003 and required to be  made,  pursuant
   30  to  the  terms  of  the  master  settlement  agreement, by participating
   31  manufacturers to the state which have not otherwise  been  allocated  to
   32  any  other  participating  jurisdictions  pursuant  to  the terms of the
   33  consent decree, and the state's rights to receive such  tobacco  settle-
   34  ment  payments and other assets of the state and other payments received
   35  by the state on and after April 1, 2003 and the state's right to receive
   36  such payments, under any other agreement,  contract,  statute  or  other
   37  provision available for sale or authorized to be sold, and determined by
   38  the state representative to be included in the sale agreement.
   39    29.  "Tobacco  settlement  financing corporation" or "the corporation"
   40  means the tobacco settlement financing corporation  created  by  section
   41  two of this act.
   42    §  4.  The  sale  agreement.    1.  The state representative, upon the
   43  execution of a sale agreement on behalf of the state  may  sell  to  the
   44  corporation, and the corporation may purchase, for cash or other consid-
   45  eration and in one or more installments, all or a portion of the state's
   46  share.   Any such agreement shall provide, among other matters, that the
   47  purchase price payable by the corporation to the state for such  state's
   48  share  or portion thereof shall consist of the net proceeds of the bonds
   49  issued to finance such purchase price and  the  residual  interests,  if
   50  any.  The residual interests shall be deposited into the tobacco settle-
   51  ment  fund  pursuant  to  section  92-x of the state finance law, unless
   52  otherwise directed by  statute;  provided,  however  that  any  residual
   53  interest derived from other assets shall be applied as directed by stat-
   54  ute  or  the  sale  agreement and if not so directed, as directed by the
   55  state representative.  Any such sale shall be pursuant to  one  or  more
   56  sale  agreements  which  may  contain  such  terms and conditions deemed
       S. 1406                            160                           A. 2106
 
    1  necessary by the state representative to carry out  and  effectuate  the
    2  purposes of this section, including covenants binding the state in favor
    3  of  the corporation and its assignees, including the owners of its bonds
    4  such  as  covenants  with  respect  to  the  diligent enforcement at the
    5  expense of the state of the master settlement agreement, the  qualifying
    6  statute  and the consent decree, the application and use of the proceeds
    7  of the sale of the state's share to preserve the  tax-exemption  on  the
    8  bonds,  the  interest  on  which  is  intended to be exempt from federal
    9  income tax, issued to finance the  purchase  thereof  and  otherwise  as
   10  provided  in  this act. Notwithstanding the foregoing, neither the state
   11  representative nor the corporation  shall  be  authorized  to  make  any
   12  covenant, pledge, promise or agreement purporting to bind the state with
   13  respect  to  pledged  tobacco revenues, except as otherwise specifically
   14  authorized by this act.
   15    2. Any sale of all or part of the state's  share  to  the  corporation
   16  shall be treated as a true sale and absolute transfer of the property so
   17  transferred  and  not  as  a  pledge  or other security interest for any
   18  borrowing. The characterization of such a sale as an  absolute  transfer
   19  by  the  participants  shall not be negated or adversely affected by the
   20  fact that only a portion of the state's share is transferred, nor by the
   21  acquisition or retention by the state of a residual interest, nor by any
   22  characterization of the corporation or its obligations for  purposes  of
   23  accounting,  taxation  or securities regulation, nor by any other factor
   24  whatsoever.
   25    3. On and after the  effective  date  of  each  sale  of  any  portion
   26  (including  all)  of  the  state's share, the state shall have no right,
   27  title or interest in or to the portion of the state's  share  sold,  and
   28  the  portion  of  the state's share so sold shall be the property of the
   29  corporation and not of the state, and shall be owned, received, held and
   30  disbursed by the corporation and not the state treasury. Notwithstanding
   31  section 92-x of the state finance law, on or before the  effective  date
   32  of  any such sale with respect to tobacco settlement payments, the state
   33  through the attorney general shall notify the  independent  auditor  and
   34  the escrow agent under the master settlement agreement that such portion
   35  of  the  state's  share has been sold to the corporation and irrevocably
   36  instruct such independent auditor and escrow agent that,  subsequent  to
   37  such  date,  such portion of the state's share is to be paid directly to
   38  the indenture trustee for the benefit of the owners of the bonds of  the
   39  corporation  which  are  secured by a pledge of such amounts, until such
   40  bonds are no longer outstanding pursuant to the  resolution  or  related
   41  indenture under which such bonds are issued.
   42    4.  The net proceeds of the bonds and any earnings thereon shall never
   43  be pledged to, nor made available for,  payment  of  the  bonds  or  any
   44  interest  or redemption price thereon or any other debt or obligation of
   45  the corporation. The net proceeds of the bonds shall be paid as directed
   46  by the state representative as specified in, or otherwise  provided  for
   47  by,  the sale agreement, and shall be used by the state (either directly
   48  or by reimbursement of the  general  fund)  for  any  of  the  following
   49  purposes:  (i) for any of its capital purposes or for any of its capital
   50  programs, (ii) for payment of debt service on  any  of  its  outstanding
   51  bonds  or on any state supported bonds, notes or other obligations or in
   52  respect of debt service on any outstanding bonds, notes or  other  obli-
   53  gations  of local governments, school districts or public benefit corpo-
   54  rations for which state aid is applicable or required to be paid or  for
   55  which  there  is a contract subject to state appropriation provided that
   56  such bonds, notes  or  other  obligations  funded  capital  projects  or
       S. 1406                            161                           A. 2106
 
    1  programs,  (iii) for other grants to local governments, school districts
    2  or public benefit corporations, or (iv) to provide  a  revenue  resource
    3  for  other  state  expenditures. With respect to any bonds of the corpo-
    4  ration,  the  interest  on  which  is intended to be exempt from federal
    5  income tax, the corporation and the  state  representative  may  provide
    6  restrictions  on  the use of net proceeds of the bonds and other amounts
    7  in the sale agreement or otherwise in a tax regulatory agreement.
    8    5. The director of the budget shall notify in writing  the  chairs  of
    9  the  senate  finance committee and the assembly ways and means committee
   10  of any plans to sell all or a portion of the state's  share  of  tobacco
   11  settlement payments prior to entering any sale agreement with the corpo-
   12  ration.  In  addition  to  notifying the chairs of these committees of a
   13  plan to sell all or part of the state's share, such director shall  also
   14  describe how the planned sale, combined with recurring budget reductions
   15  and other on-going or anticipated actions, supports a multi-year plan to
   16  achieve  budget  balance. Either at the time this notification is given,
   17  or as soon as possible thereafter, such director  shall  report  on  the
   18  amount of any bonds expected to be sold by the corporation pursuant to a
   19  sale agreement and on the net proceeds that will be paid to the state.
   20    §  5.  Powers  of the corporation. The corporation also shall have the
   21  power to:
   22    1. sue and be sued;
   23    2. have a seal and alter the same at pleasure;
   24    3. make and alter by-laws for its organization and internal management
   25  and make rules and regulations governing the use  of  its  property  and
   26  facilities;
   27    4.  make  and execute contracts and all other instruments necessary or
   28  convenient for the exercise of  its  powers  and  functions  under  this
   29  section  and  to  commence  any  action  to protect or enforce any right
   30  conferred upon it by any law, contract or other agreement;
   31    5. appoint officers, agents and employees, prescribe their duties  and
   32  qualifications,  fix  their  compensation  and  engage  the  services of
   33  private consultants and  counsel  on  a  contract  basis  for  rendering
   34  professional and technical assistance and advice provided that the chief
   35  executive  officer of the corporation shall be the chief executive offi-
   36  cer of the authority and any other officers or employees, if  appointed,
   37  shall be those having similar positions with the authority;
   38    6. pay its operating expenses and its financing costs;
   39    7. borrow money in its name and issue negotiable bonds and provide for
   40  the rights of the holders thereof;
   41    8.  procure  insurance  against any loss in connection with its activ-
   42  ities, properties and assets in such amount and from such insurers as it
   43  deems desirable;
   44    9. invest any funds or other moneys under its custody and  control  in
   45  investment securities or under any ancillary bond facility;
   46    10.  as  security  for the payment of the principal of and interest on
   47  any bonds issued by it pursuant to this act and any  agreement  made  in
   48  connection  therewith  and  for its obligations under any ancillary bond
   49  facility, pledge all or any part of its revenues or assets;
   50    11. with the approval of the state representative, enter into, modify,
   51  amend, replace or renew any ancillary  bond  facility  with  any  person
   52  under such terms and conditions as the corporation may determine includ-
   53  ing,  without  limitation, provisions as to default or early termination
   54  and indemnification by the corporation or any other  party  thereto  for
   55  loss  of  benefits  as a result thereof and with respect to execution of
   56  any interest rate exchange or similar agreement and prior thereto, adopt
       S. 1406                            162                           A. 2106
 
    1  guidelines and make the determinations set forth in subdivision seven or
    2  eight of section six of this act; and
    3    12.  do  any  and  all things necessary or convenient to carry out its
    4  purposes and exercise the powers expressly given  and  granted  in  this
    5  section.
    6    §  6.  Bonds  of  the corporation.   1. (i) The corporation shall have
    7  power and is hereby authorized from time to time to issue its  bonds  in
    8  such  principal  amount or amounts as the corporation shall determine to
    9  be necessary, to provide sufficient funds for  achieving  its  corporate
   10  purpose,  consisting  of the purchase of all or a portion of the state's
   11  share pursuant to section four of this act and the payment or  provision
   12  for financing costs.
   13    (ii) Each issuance of bonds shall be authorized by a resolution of the
   14  corporation,  adopted  by a majority of the members of the board then in
   15  office without further authorization  or  approval,  provided,  however,
   16  that  any such resolution authorizing the issuance of bonds or notes may
   17  delegate to an officer of the corporation the power to issue such  bonds
   18  from  time to time and to fix the details of any such issues of bonds by
   19  an appropriate certificate of such authorized officer.   Every issue  of
   20  the  bonds of the corporation shall be special revenue obligations paya-
   21  ble from and secured by a pledge of pledged tobacco revenues  and  other
   22  assets,  including  those  proceeds of such bonds deposited in a reserve
   23  fund for the benefit of bondholders, earnings on  funds  of  the  corpo-
   24  ration and such other funds as may become available, upon such terms and
   25  conditions  as  approved by the state representative and as specified by
   26  the corporation in the resolution under which the bonds are issued or in
   27  a related trust indenture.
   28    (iii) The corporation shall have the power and  is  hereby  authorized
   29  from time to time to issue bonds, whenever it deems refunding expedient,
   30  to  refund  any bonds by the issuance of new bonds, whether the bonds to
   31  be refunded have or have not matured,  and  to  issue  bonds  partly  to
   32  refund  bonds then outstanding and partly for any of its other corporate
   33  purposes. The refunding bonds may be  exchanged  for  the  bonds  to  be
   34  refunded or sold and the proceeds applied to the purchase, redemption or
   35  payment of such bonds.
   36    2.  The  bonds  of the corporation of each issue shall be dated, shall
   37  bear interest (which, under the code,  in  the  opinion  of  transaction
   38  counsel  to the corporation, may be includable in or excludable from the
   39  gross income of the owners for federal  income  tax  purposes)  at  such
   40  fixed  or  variable  rates,  payable  at or prior to maturity, and shall
   41  mature at such time or times, as may be determined  by  the  corporation
   42  and  may be made redeemable before maturity, at the option of the corpo-
   43  ration, at such price or prices and under such terms and  conditions  as
   44  may  be  fixed  by  the  corporation. The principal and interest of such
   45  bonds may be made payable in any lawful medium. The  resolution  or  the
   46  certificate  of  the  authorized officer shall determine the form of the
   47  bonds, either registered or book-entry form, and the manner of execution
   48  of the bonds and shall fix the  denomination  or  denominations  of  the
   49  bonds and the place or places of payment of principal and interest ther-
   50  eof,  which  may  be  at any bank or trust company within or outside the
   51  state. If any officer whose signature or a facsimile thereof appears  on
   52  any  bonds  shall  cease  to be such officer before the delivery of such
   53  bonds, such signature or  facsimile  shall  nevertheless  be  valid  and
   54  sufficient  for  all  purposes  the same as if he had remained in office
   55  until such delivery.   The corporation may also  provide  for  temporary
       S. 1406                            163                           A. 2106
 
    1  bonds and for the replacement of any bond that shall become mutilated or
    2  shall be destroyed or lost.
    3    3.  The  corporation with the approval of the state representative may
    4  sell such bonds in such manner, either at a public or private  sale  and
    5  either on a competitive or negotiated basis.  The proceeds of such bonds
    6  shall  be  disbursed  for  the purposes for which such bonds were issued
    7  under such restrictions, if any, as the laws  of  the  state,  the  sale
    8  agreement  and  the resolution authorizing the issuance of such bonds or
    9  the related trust indenture may provide.   Such bonds  shall  be  issued
   10  upon  approval  of both the state representative and the corporation and
   11  without any other approvals, filings, proceedings or  the  happening  of
   12  any  other  conditions  or  things  other  than the approvals, findings,
   13  proceedings, conditions, and things that are specified and  required  by
   14  this act.
   15    4.  Any  pledge  made by the corporation shall be valid and binding at
   16  the time the pledge is made. The assets, property, revenues, reserves or
   17  earnings so pledged shall immediately be subject to  the  lien  of  such
   18  pledge without any physical delivery thereof or further act and the lien
   19  of  any  such  pledge  shall be valid and binding as against all parties
   20  having claims of any kind in tort, contract  or  otherwise  against  the
   21  corporation,  irrespective  of whether such parties have notice thereof.
   22  Notwithstanding any other provision of law to the contrary, neither  the
   23  bond  resolution nor any indenture or other instrument by which a pledge
   24  is created or by which the corporation's  interest  in  pledged  assets,
   25  property,  revenues,  reserves  or  earnings thereon is assigned need be
   26  filed, perfected or recorded in any public records in order  to  protect
   27  the pledge thereof or perfect the lien thereof as against third parties,
   28  except  that  a copy thereof shall be filed in the records of the corpo-
   29  ration.
   30    5. Whether or not the bonds of the corporation are of  such  form  and
   31  character as to be negotiable instruments under the terms of the uniform
   32  commercial  code,  the  bonds are hereby made negotiable instruments for
   33  all purposes, subject only to the provisions of the bonds for  registra-
   34  tion.
   35    6.  At the sole discretion of the corporation, any bonds issued by the
   36  corporation and any ancillary bond facility made under the provisions of
   37  this act may be secured by  a  resolution  or  trust  indenture  by  and
   38  between  the  corporation  and the trust indenture trustee, which may be
   39  any trust company or bank having the powers of a trust company,  whether
   40  located  within or outside the state. Such trust indenture or resolution
   41  providing for the issuance of such bonds may provide  for  the  creation
   42  and  maintenance  of  such  reserves  as the board shall determine to be
   43  proper and may include covenants setting forth the duties of the  corpo-
   44  ration  in  relation  to  the  bonds, the income of the corporation, the
   45  related sale agreement with respect to the sale of the state's share and
   46  the pledged tobacco revenues and other assets.  Such trust indenture  or
   47  resolution  may  contain provisions respecting the custody, safeguarding
   48  and  application  of  all  moneys  and  securities,  may  contain   such
   49  provisions  for protecting and enforcing the rights and remedies (pursu-
   50  ant thereto and to the sale agreement) of the owners of  the  bonds  and
   51  any  other  benefitted  party as may be reasonable and proper and not in
   52  violation of law and may include any or all of the  rights,  powers  and
   53  duties of the trustee appointed by bondholders pursuant to section eight
   54  of  this  act and limiting or abrogating the right of the bondholders to
   55  appoint a trustee under such section.  It shall be lawful for  any  bank
   56  or  trust company incorporated under the laws of the state which may act
       S. 1406                            164                           A. 2106
 
    1  as depository of the proceeds of bonds or of any other  funds  or  obli-
    2  gations received on behalf of the corporation to furnish such indemnify-
    3  ing  bonds or to pledge such securities as may be required by the corpo-
    4  ration.  Any  such  trust indenture or resolution may contain such other
    5  provisions as the corporation may deem reasonable and proper for priori-
    6  ties and subordination among the owners of the bonds and other benefici-
    7  aries. Any reference in this act to a  resolution  of  the  board  shall
    8  include any trust indenture authorized thereby.
    9    7.  The  corporation  may enter into, amend or terminate, as it deter-
   10  mines to be necessary or appropriate, any ancillary bond facility (i) to
   11  facilitate the issuance, sale, resale, purchase, repurchase  or  payment
   12  of  bonds, interest rate savings or market diversification or the making
   13  or performance of swap  contracts,  including  without  limitation  bond
   14  insurance,  letters  of  credit  and  liquidity  facilities,  or (ii) to
   15  attempt to manage or hedge risk or achieve a desirable effective  inter-
   16  est  rate  or cash flow.  Such facility shall be made upon the terms and
   17  conditions  established  by  the  board,  including  without  limitation
   18  provisions  as  to  security,  default, termination, payment, remedy and
   19  consent to service of process.
   20    8. The corporation may enter into, amend or terminate,  any  ancillary
   21  bond facility that it determines to be necessary or appropriate to place
   22  the obligations or investments of the corporation, as represented by the
   23  bonds  or  the  investment  of  reserved  bond proceeds or other pledged
   24  tobacco revenues or other assets, in whole or in part, on  the  interest
   25  rate, cash flow or other basis approved by the corporation, which facil-
   26  ity  may include without limitation contracts commonly known as interest
   27  rate swap agreements, forward purchase contracts or  guaranteed  invest-
   28  ment  contracts and futures or contracts providing for payments based on
   29  levels of, or changes in, interest rates. These  contracts  or  arrange-
   30  ments  may  be  entered  into  by the corporation in connection with, or
   31  incidental to, entering into, or maintaining  any  (i)  agreement  which
   32  secures bonds of the corporation or (ii) investment, or contract provid-
   33  ing  for  investment  of  reserves  or  similar facility guaranteeing an
   34  investment rate for a period of years not to exceed the underlying  term
   35  of  the  bonds.  The  determination by the corporation that an ancillary
   36  bond facility or the amendment or termination thereof  is  necessary  or
   37  appropriate as aforesaid shall be conclusive. Any ancillary bond facili-
   38  ty  may  contain  such  payment,  security, default, remedy, termination
   39  provisions and payments and other terms and conditions as determined  by
   40  the  corporation, after giving due consideration to the creditworthiness
   41  of the counterparty or other obligated party, including  any  rating  by
   42  any  nationally  recognized rating agency, and any other criteria as may
   43  be appropriate.
   44    9. Bonds or any ancillary bond facility may  contain  a  recital  that
   45  they  are  issued or executed, respectively, pursuant to this act, which
   46  recital shall be conclusive evidence of  their  validity,  respectively,
   47  and the regularity of the proceedings relating thereto.
   48    10.  The  corporation,  subject to such agreements with bondholders as
   49  may then exist (including provisions which restrict  the  power  of  the
   50  corporation  to purchase bonds), or with the providers of any applicable
   51  ancillary bond facility, shall have the power out of any funds available
   52  therefor to purchase bonds of the corporation,  which  may  or  may  not
   53  thereupon be cancelled, at a price not substantially exceeding:
   54    (i) if the bonds are then redeemable, the redemption price then appli-
   55  cable, including any accrued interest; and
       S. 1406                            165                           A. 2106
 
    1    (ii)  if  the  bonds are not then redeemable, the redemption price and
    2  accrued interest applicable on the first date after such  purchase  upon
    3  which the bonds become subject to redemption.
    4    11.  Neither  the  members  of  the  corporation  nor any other person
    5  executing the bonds or an ancillary bond  facility  of  the  corporation
    6  shall  be  subject to any personal liability or accountability by reason
    7  of the issuance or execution and delivery thereof.
    8    § 7. State not  liable  on  bonds  or  any  ancillary  bond  facility.
    9  Neither  any  bond  nor  any  ancillary bond facility of the corporation
   10  shall constitute a debt or moral obligation of  the  state  or  a  state
   11  supported  obligation within the meaning of any constitutional or statu-
   12  tory provision or a pledge of the faith and credit of the  state  or  of
   13  the taxing power of the state, and the state shall not be liable to make
   14  any  payments  thereon nor shall any bond or any ancillary bond facility
   15  be payable out of any funds or assets other than pledged tobacco  reven-
   16  ues  and  other  assets, if any, sold to the corporation and other funds
   17  and assets of or available to the corporation pledged therefor, and  the
   18  bonds  and  any ancillary bond facility of the corporation shall contain
   19  on the face thereof or other prominent place thereon a statement to  the
   20  foregoing  effect  and  that the state has no obligation or intention to
   21  appropriate for, or otherwise satisfy, any deficiency or default of  any
   22  payment on the bonds or any ancillary bond facility.
   23    § 8. Remedies of bondholders.  1. Subject to the provisions of section
   24  six  of this act, in the event that the corporation shall default in the
   25  payment of principal of, or interest on, or sinking fund payment on, any
   26  issue of bonds after the same shall become due, whether at  maturity  or
   27  upon  call  for  redemption, or in the event that the corporation or the
   28  state shall default in any agreement made with the holders of any  issue
   29  of  bonds,  the holders of twenty-five per centum in aggregate principal
   30  amount of the bonds of such issue then  outstanding,  by  instrument  or
   31  instruments filed in the office of the clerk of the county of Albany and
   32  proved  or acknowledged in the same manner as a deed to be recorded, may
   33  appoint a trustee to  represent  the  holders  of  such  bonds  for  the
   34  purposes herein provided.
   35    2.  Such  trustee,  or  any trustee appointed under this act, may, and
   36  upon written request of the holders of twenty-five per centum in princi-
   37  pal amount of such bonds then outstanding shall, in his or its own name:
   38    (i) by suit, action or proceeding in accordance with the  civil  prac-
   39  tice law and rules, enforce all rights of the bondholders, including the
   40  right  to  require  the corporation to carry out any agreement with such
   41  holders and to perform its duties under this act;
   42    (ii) bring suit upon such bonds;
   43    (iii) by action or suit, require the corporation to account as  if  it
   44  were the trustee of an express trust for the holders of such bonds;
   45    (iv)  by action or suit, enjoin any acts or things which may be unlaw-
   46  ful or in violation of the rights of the holders of such bonds; and
   47    (v) declare all such bonds due and payable, and if all defaults  shall
   48  be  made  good, then, with the consent of the holders of twenty-five per
   49  centum of the principal amount of such  bonds  then  outstanding,  annul
   50  such  declaration  and its consequences, provided, however, that nothing
   51  herein shall preclude the corporation from agreeing that consent of  the
   52  provider  of  an ancillary bond facility is required for an acceleration
   53  of related bonds in the event of a default other than a failure  to  pay
   54  principal of or interest on the bonds when due.
   55    3.  The  supreme  court shall have jurisdiction of any suit, action or
   56  proceeding by the trustee on behalf of such bondholders.   The venue  of
       S. 1406                            166                           A. 2106
 
    1  any such suit, action or proceeding shall be laid in the county of Alba-
    2  ny.
    3    4.  Before declaring the principal of bonds due and payable, the trus-
    4  tee shall first give thirty days notice in writing to the corporation.
    5    § 9. Exemption from taxation.   1. It is hereby  determined  that  the
    6  creation  of  the  corporation  and  the  carrying  out of its corporate
    7  purpose is in all respects a public and  governmental  purpose  for  the
    8  benefit  of  the  people  of  the state and for the improvement of their
    9  health, safety, welfare, comfort and security, and  that  said  purposes
   10  are  public  purposes  and  that  the  corporation will be performing an
   11  essential governmental function in the exercise of the powers  conferred
   12  upon it by this act.
   13    2. The property of the corporation and its income and operations shall
   14  be exempt from taxation.
   15    3.  The  bonds  of the corporation issued pursuant to this act and the
   16  income therefrom and all its fees,  charges,  gifts,  grants,  revenues,
   17  receipts, and other monies received or to be received, pledged to pay or
   18  secure  the  payment of such bonds shall at all times be free from taxa-
   19  tion, except for estate and gift taxes on transfers.
   20    4. In the case of any bonds of the corporation, interest on  which  is
   21  intended  to  be  exempt  from federal income tax, the corporation shall
   22  prescribe restrictions on the use of the proceeds  thereof  and  related
   23  matters as are necessary to assure such exemption, and the recipients of
   24  such  proceeds  shall  be  bound thereby to the extent such restrictions
   25  shall be made applicable to them. Any such recipient, including, but not
   26  limited to, the state, a public benefit corporation, a  school  district
   27  or municipality is authorized to execute a tax regulatory agreement with
   28  the  corporation  or the state, as the case may be, and the execution of
   29  such an agreement may be treated by the corporation or the  state  as  a
   30  condition to receiving any such proceeds.
   31    §  10. Agreement with state.  1. The state pledges and agrees with the
   32  corporation, and the owners of the bonds of the corporation in which the
   33  corporation has included such pledge and agreement, that the state shall
   34  (i) irrevocably direct, through the attorney  general,  the  independent
   35  auditor  and  the  escrow agent under the master settlement agreement to
   36  transfer all pledged tobacco revenues directly to the corporation or its
   37  assignee, (ii) diligently enforce the corporation's right to receive the
   38  pledged tobacco revenues to the full extent permitted by  the  terms  of
   39  the  master  settlement  agreement  and,  in  addition, shall diligently
   40  enforce the qualifying statute as contemplated in the master  settlement
   41  agreement  against  all  tobacco  product  manufacturers selling tobacco
   42  products in the state and that are not signatories to the master settle-
   43  ment agreement, in each case in the manner and to the  extent  necessary
   44  in  the  judgment of the attorney general to collect all moneys to which
   45  the state is entitled  under  the  master  settlement  agreement,  (iii)
   46  neither  amend the master settlement agreement nor the consent decree or
   47  take any other action in any way that would alter, limit or  impair  the
   48  corporation's  right  to  receive  pledged tobacco revenues, or limit or
   49  alter the rights hereby vested in the corporation to fulfill  the  terms
   50  of  its agreements with such bondowners, or in any way impair the rights
   51  and remedies of such bondowners or the security  for  such  bonds  until
   52  such  bonds,  together  with  the  interest  thereon  and  all costs and
   53  expenses in connection with any action or proceedings by or on behalf of
   54  such bondowners, are fully paid and discharged (provided,  that  nothing
   55  herein  shall be construed to preclude the state's regulation of smoking
   56  and taxation and regulation of the sale of cigarettes or the like),  and
       S. 1406                            167                           A. 2106
 
    1  (iv)  not  amend,  supersede  or  repeal  the qualifying statute and any
    2  complementary legislation, in  any way that would  materially  adversely
    3  affect the amount of any payment to, or materially impair the rights of,
    4  the  corporation  or  such  bondholders.    The  state representative is
    5  authorized and directed to include this pledge and agreement in the sale
    6  agreement and authorizes and directs the corporation, as  agent  of  the
    7  state  to  include  this  pledge  and agreement in any contract with the
    8  bondholders of the corporation.
    9    2. Prior to the date which is one year and one day  after  the  corpo-
   10  ration  no  longer has any bonds outstanding, the corporation shall have
   11  no authority to file a voluntary petition under chapter 9 of the federal
   12  bankruptcy code or such corresponding chapter or sections as  may,  from
   13  time  to  time,  be  in  effect,  and neither any public officer nor any
   14  organization, entity or other person shall authorize the corporation  to
   15  be  or become a debtor under chapter 9 or any successor or corresponding
   16  chapter or sections during such period. The state hereby covenants  with
   17  the owners of the bonds of the corporation that the state will not limit
   18  or alter the denial of authority under this subdivision during the peri-
   19  od  referred to in the preceding sentence. The corporation is authorized
   20  and directed as agent of the state to include this covenant as an agree-
   21  ment of the state in any contract with the  bondholders  of  the  corpo-
   22  ration.
   23    3.  To  the  extent deemed appropriate by the corporation and with the
   24  approval of the state representative, any pledge and  agreement  of  the
   25  state  with  respect  to  the  bonds  as provided in this section may be
   26  extended to, and included in, any ancillary bond facility  as  a  pledge
   27  and agreement of the state with the corporation and the benefited party.
   28    4.  The  state  acknowledges  and  agrees that the other participating
   29  jurisdictions have rights and interests in the consent decree. In recog-
   30  nition of the rights of the other participating jurisdictions  contained
   31  in  the  consent  decree, the state pledges that the sale of the state's
   32  share authorized by this act shall in no way include  or  be  deemed  to
   33  include,  and the state shall not otherwise alter, limit, or impair, the
   34  rights of the  other  participating  jurisdictions  including,  but  not
   35  limited to, rights to receive payments, set forth in the consent decree.
   36  Nothing in this act shall be construed to alter the right of each of the
   37  other  participating  jurisdictions  under the consent decree to receive
   38  payments or to sell or assign some or all of its interest in the  manner
   39  deemed appropriate pursuant to law by its governing body.
   40    §  11.  Bonds  as  legal investments. The bonds of the corporation are
   41  hereby made securities in which all public officers and bodies  of  this
   42  state  and  all municipalities and political subdivisions, all insurance
   43  companies and associations and other persons carrying  on  an  insurance
   44  business, all banks, bankers, trust companies, savings banks and savings
   45  associations, including savings and loan associations, building and loan
   46  associations, investment companies and other persons carrying on a bank-
   47  ing  business,  all  administrators,  guardians, executors, trustees and
   48  other fiduciaries, and all other persons whatsoever who are now  or  may
   49  hereafter  be  authorized  to invest in bonds or in other obligations of
   50  the state, may properly and legally invest funds, including capital,  in
   51  their  control  or  belonging  to them.   The bonds are also hereby made
   52  securities which may be deposited with and may be received by all public
   53  officers and bodies of  the  state  and  all  municipalities,  political
   54  subdivisions  and  public  corporations  for  any  purpose for which the
   55  deposit of bonds or other obligations of the state is now or  may  here-
   56  after be authorized.
       S. 1406                            168                           A. 2106
 
    1    §  12.  Actions  against  the  corporation.   1. An action against the
    2  corporation for death, personal injury or property damage or founded  on
    3  tort shall not be commenced more than one year and ninety days after the
    4  cause  of action thereof shall have accrued nor unless a notice of claim
    5  shall  have  been  served  on  a member of the corporation or officer or
    6  employee thereof designated by the corporation for such purpose,  within
    7  the  time limited by, and in compliance with the requirements of section
    8  50-e of the general municipal law.
    9    2. The venue of every  action,  suit  or  special  proceeding  brought
   10  against the corporation shall be laid in the county of Albany.
   11    3.  (a) Neither any member of the corporation nor any officer, employ-
   12  ee, or agent of the corporation, while acting within the scope of  their
   13  authority,  shall  be  subject  to any personal liability resulting from
   14  exercising or carrying out of  any  of  the  corporation's  purposes  or
   15  powers.
   16    (b)  The  provisions  of  section  17 of the public officers law shall
   17  apply to members of the board, officers, employees  and  agents  of  the
   18  corporation  in  connection  with  any  and  all claims, demands, suits,
   19  actions or proceedings which may be made or brought against any of  them
   20  arising out of any determinations made or actions taken or omitted to be
   21  taken in compliance with any undertakings under or pursuant to the terms
   22  of  this  act.  The provisions of this paragraph shall be in addition to
   23  and shall not supplant any indemnification or other benefits  heretofore
   24  or  hereafter  conferred  upon members of the board, officers, employees
   25  and agents of the corporation, by action of such or otherwise.
   26    § 13. Assistance to the corporation. With the consent of the governor,
   27  comptroller or attorney general as the case may be, the corporation  may
   28  use agents, employees and facilities of the state or authority paying to
   29  the  affected  agency, office or department its agreed proportion of the
   30  compensation or costs.
   31    § 14. Preference for actions or proceedings against  the  corporation.
   32  Any  action  or proceeding to which the corporation or the people of the
   33  state may be parties, in which any question arises as to the validity of
   34  this act, shall be preferred over all other civil causes  of  action  or
   35  cases,  except  election causes of action or cases, in all courts of the
   36  state and shall be heard and determined in preference to all other civil
   37  business pending therein, except election causes, irrespective of  posi-
   38  tion on the calendar. The same preference shall be granted upon applica-
   39  tion of the corporation or its counsel in any action or proceeding ques-
   40  tioning the validity of this act in which the corporation may be allowed
   41  to  intervene.  The venue of any such action or proceeding shall be laid
   42  in the supreme court of the county of Albany.
   43    § 15. Construction. This act and all powers granted  hereby  shall  be
   44  liberally construed to effectuate its intent and their purposes, without
   45  implied limitations thereon. This act shall constitute full and complete
   46  authority for all things herein contemplated to be done.  All rights and
   47  powers  herein granted shall be cumulative with those derived from other
   48  sources and shall not, except as expressly stated herein,  be  construed
   49  in limitation thereof.  Insofar as the provisions of this act are incon-
   50  sistent  with  the  provisions of any other act, general or special, the
   51  provisions of this act shall be controlling.
   52    § 16. Severability clause. If any clause, sentence, paragraph, section
   53  or part of this act be adjudged by any court of  competent  jurisdiction
   54  to  be invalid, such judgment shall not affect, impair or invalidate the
   55  remainder hereof but shall be applied in its operation  to  the  clause,
       S. 1406                            169                           A. 2106
 
    1  sentence,  paragraph,  section  or  part hereof directly involved in the
    2  controversy in which such judgment shall have been rendered.
    3    § 2. Section 2425 of the public authorities law is amended by adding a
    4  new tenth undesignated paragraph to read as follows:
    5    Also,  it is hereby found and declared that it is in the public inter-
    6  est to facilitate the financial activities  of  the  tobacco  settlement
    7  financing  corporation  by  providing  a  source  or potential source of
    8  payment into funds established by such corporation for  the  payment  of
    9  financial  obligations  or  financial  rights  of such corporation under
   10  bonds or ancillary bond facilities.
   11    § 3. Subdivision 5 of section 2426 of the public authorities  law,  as
   12  amended  by  chapter  112  of  the  laws of 2000, is amended and six new
   13  subdivisions 17, 18, 19, 20, 21 and 22 are added to read as follows:
   14    5. "Mortgage insurance fund requirement". For any category of loans or
   15  corporation credit support as of any particular date of computation,  an
   16  amount  of  money  or cash equivalents equal to (i) the aggregate of (a)
   17  such insured amounts of each category of  loans  or  corporation  credit
   18  support  as  the  agency has determined to be due and payable as of such
   19  date pursuant to its contracts to insure  mortgages  or  provide  corpo-
   20  ration  credit  support plus (b) an amount equal to twenty per centum of
   21  the amounts of each category of loans insured under the agency's  insur-
   22  ance contracts plus twenty per centum of the amounts to be insured under
   23  the  agency's  commitments  to  insure  less the amounts payable in each
   24  category of loans pursuant  to  [paragraph]  subparagraph  (a)  of  this
   25  [subdivision]  paragraph, provided, however, that if the board of direc-
   26  tors of the agency shall have established a per centum for a category of
   27  loans, or for one or more loans  within  such  categories,  pursuant  to
   28  subdivision  seven  of  section twenty-four hundred twenty-eight of this
   29  [title] part, such per centum shall be substituted for twenty per centum
   30  in this paragraph for such category or loan, and provided further,  that
   31  no such new per centum shall be lower than twenty per centum plus (c) an
   32  amount  equal  to  the  respective  amounts established by contract with
   33  respect to each reserve and financial support fund (which may be  deter-
   34  mined by reference to percentages of amounts required or permitted to be
   35  on  deposit  in  said funds and may be different for each such fund) for
   36  which the agency has determined  that  the  corporation  credit  support
   37  account  established  under section twenty-four hundred twenty-nine-b of
   38  this part is or will be a source  or  potential  source  of  corporation
   39  credit  support,  less  the  amounts payable with respect to corporation
   40  credit support pursuant to subparagraph (a) of this paragraph, less (ii)
   41  the aggregate of the amount of each  reinsurance  contract  procured  in
   42  connection  with agency obligations determined by the board of directors
   43  of the agency to be a reduction pursuant to this paragraph in  calculat-
   44  ing  the  mortgage  insurance  fund  requirement.   For purposes of pool
   45  insurance, in no event shall the reserve requirement be less than twenty
   46  percent of the amounts insured under the agency's insurance contracts.
   47    17. "Ancillary bond facility".  That  portion  of  an  ancillary  bond
   48  facility,  as  defined  in  the tobacco settlement financing corporation
   49  act, with respect to which the corporation has an  actual  or  potential
   50  financial obligation or financial right.
   51    18.  "Bonds".  Bonds  as  defined  in the tobacco settlement financing
   52  corporation act.
   53    19.  "Corporation".  The  tobacco  settlement  financing  corporation,
   54  created by the tobacco settlement financing corporation act.
   55    20.  "Reserve  and  financial support fund". Each fund (including, but
   56  not limited to, any fund or account in the nature of a reserve  fund,  a
       S. 1406                            170                           A. 2106
 
    1  debt  service fund, a revenue fund, a redemption fund or a reimbursement
    2  fund) established by the corporation in connection  with  its  bonds  or
    3  ancillary  bond  facilities  from  which  amounts are required to be, or
    4  available  to  be,  applied  in satisfaction of financial obligations or
    5  financial rights of the corporation under such bonds or  ancillary  bond
    6  facilities.
    7    21.  "Corporation  credit  support". The sum of the respective amounts
    8  (or percentages) of required or permissive funding by the corporation of
    9  each reserve and financial support fund established by  the  corporation
   10  for  its  bonds  and, to the extent not otherwise provided in respect of
   11  the support of bonds, for its ancillary bond facilities  for  which  the
   12  agency has determined that the corporation credit support account estab-
   13  lished  under  section twenty-four hundred twenty-nine-b of this part is
   14  or will be a source or potential source of funding.
   15    22.  "Tobacco  settlement  financing  corporation  act".  The  tobacco
   16  settlement  financing corporation act as set forth in section one of the
   17  chapter of the laws of two thousand three which added this subdivision.
   18    § 4. The opening paragraph of section 2427 of the  public  authorities
   19  law,  as  added by chapter 788 of the laws of 1978, is amended and a new
   20  subdivision 10 is added to read as follows:
   21    The agency shall  have  the  following  additional  powers  only  with
   22  respect  to  insuring  mortgage  loans  and providing corporation credit
   23  support:
   24    10. To provide corporation credit support.
   25    § 5. The public authorities law is amended by  adding  a  new  section
   26  2428-a to read as follows:
   27    §  2428-a. Corporation credit support account as source of corporation
   28  credit support.  (a) The agency is authorized, subject to the provisions
   29  of this article, to provide the corporation credit support account as  a
   30  source  or  potential  source  of payment of corporation credit support.
   31  The agency may provide the  corporation  credit  support  account  as  a
   32  source  or  potential source of payment of all or any corporation credit
   33  support upon the terms and under the conditions it shall  set  forth  in
   34  the  applicable  contracts  between  the  agency  and such other parties
   35  (including the corporation) as the agency shall  deem  appropriate  with
   36  respect  to the applicable reserve and financial support funds which are
   37  to receive the benefit of such corporation credit support.
   38    (b) For purposes of determining the mortgage insurance  fund  require-
   39  ment  with  respect to the corporation credit support account, the board
   40  of directors of the agency, by a vote  of  a  majority  of  all  of  its
   41  members, shall approve or authorize the applicable contracts which shall
   42  establish  the  amount  of  the  required  or  permitted deposit in each
   43  reserve and financial support fund (which may be determined by reference
   44  to percentages of such required or  permitted  amounts)  for  which  the
   45  corporation  credit  support account is or will be a source or potential
   46  source of corporation credit support. Such amounts (or percentages)  may
   47  be different for each reserve and financial support fund.
   48    § 6. Section 2429-a of the public authorities law, as amended by chap-
   49  ter 782 of the laws of 1992, is amended to read as follows:
   50    §  2429-a.  Payment  of insurance and corporation credit support.  (a)
   51  The agency shall establish procedures to be followed by a  mortgagee  in
   52  the  event  of  a default under the terms of any mortgage insured by the
   53  agency. The agency may require that prior to submitting a claim  to  the
   54  agency  for  payment  of insurance the mortgagee shall take such actions
   55  with respect to the property securing the defaulted mortgage as  may  be
   56  specified  by  the  agency  to  be satisfactory evidence of a continuing
       S. 1406                            171                           A. 2106
 
    1  default, including but  not  limited  to  the  following:  (i)  becoming
    2  lawfully the mortgagee in possession thereof; (ii) causing a receiver to
    3  be  appointed  of such property; (iii) obtaining voluntary conveyance of
    4  the  mortgagor's  right and title to such property; or (iv) obtaining by
    5  foreclosure clear and unencumbered title to such property, all  in  such
    6  manner  as the agency may require. Following submission of a valid claim
    7  the agency shall pay an amount which shall not exceed the lesser of  (1)
    8  the then outstanding insured principal amount of the mortgage multiplied
    9  by the per centum of such outstanding amount insured by the agency and a
   10  per  centum  of the mortgagee's cost arising from the default, inclusive
   11  of public liens and delinquent and unpaid interest, all  as  the  agency
   12  may  from  time to time allow, which per centum shall not exceed the per
   13  centum of the outstanding principal indebtedness insured by  the  agency
   14  or  (2)  the  insured amount of the mortgage at the date of execution of
   15  the insurance contract or its latest amendment, if any, except that  the
   16  agency  shall  pay  the greater of the two amounts on claims by a public
   17  employee pension fund, or by a public benefit corporation  derived  from
   18  the  sale of notes or bonds issued by said corporation, provided that no
   19  more than the actual loss suffered by such public employee pension  fund
   20  or public benefit corporation shall be paid. Such payment may be made by
   21  the agency in a lump sum, or in partial payments made within such period
   22  of time as may be agreed to between the agency and the mortgagee, all in
   23  accordance with procedures to be established by the agency.
   24    (b)  The  agency shall establish, by contract or otherwise, procedures
   25  to be followed with respect to corporation credit support for which  the
   26  corporation  credit support account has been determined by the agency to
   27  be a source or potential source of payment.
   28    § 7. Section 2429-b of the public authorities law, as added by chapter
   29  788 of the laws of 1978, subdivisions 1 and 1-a as  amended  by  chapter
   30  291  of the laws of 1994, subdivision 2 as amended by chapter 112 of the
   31  laws of 2000 and subdivision 4 as amended by chapter 414 of the laws  of
   32  1988, is amended to read as follows:
   33    §  2429-b. Mortgage insurance fund. 1. (a) The agency shall create and
   34  establish a mortgage insurance fund. Within such fund, the agency  shall
   35  establish:  (i)  a  special account, which shall be divided into sub-ac-
   36  counts for each region as defined in subdivision nine of  section  twen-
   37  ty-four  hundred  twenty-six  of  this  title; (ii) a single family pool
   38  insurance account; [and] (iii) a project  pool  insurance  account;  and
   39  (iv) a corporation credit support account. The single family pool insur-
   40  ance account shall be used for all business relating to the insurance of
   41  mortgages  on  properties  with  one  to  four dwelling units [and], the
   42  project pool insurance account shall be used for all  business  relating
   43  to the insurance of mortgages on properties other than those with one to
   44  four dwelling units, and the corporation credit support account shall be
   45  used  for  all business relating to corporation credit support. Separate
   46  sub-accounts may be established within the special  account  [and],  the
   47  pool  insurance  accounts, and the corporation credit support account as
   48  deemed appropriate by the agency.
   49    (b) (i) The mortgage insurance fund shall be used as a revolving  fund
   50  for  carrying out the provisions of this title with respect to mortgages
   51  insured and corporation credit support, provided  thereunder.  (ii)  The
   52  agency  shall  pay into such fund all moneys which may be made available
   53  to the agency for the purposes of such fund from any  source,  including
   54  but  not limited to the moneys received from recording officers pursuant
   55  to the provisions of subdivision two of section two hundred sixty-one of
   56  the tax law. The agency shall credit the amount of moneys received  from
       S. 1406                            172                           A. 2106
 
    1  the  recording  officer  of  each county, pursuant to subdivision two of
    2  section two hundred sixty-one of the tax law, to the special account. In
    3  any fiscal year, no more than fifty per centum of  the  amount  received
    4  from  the  recording officers during the consecutive twelve month period
    5  ending on the preceding March thirty-first may be used by the agency for
    6  the purpose of insuring mortgages on property located in any one  region
    7  pursuant  to  section  two  thousand  four  hundred twenty-eight of this
    8  [chapter] part, provided, however, that this provision shall not include
    9  or be applied to pool insurance of mortgage loans purchased by the agen-
   10  cy. The agency shall credit any other moneys which may be made available
   11  to the agency for the purposes of such fund from any other source to the
   12  special account, the single family  pool  insurance  account  [or],  the
   13  project  pool  insurance  account,  or  the  corporation  credit support
   14  account, as appropriate. Any income or interest earned by, or  increment
   15  to,  the  mortgage insurance fund due to the investment thereof shall be
   16  credited to the special account  [or],  the  applicable  pool  insurance
   17  account, or the corporation credit support account, as appropriate.
   18    (c) The agency may credit from the special account to the single fami-
   19  ly  pool insurance account [and], to the project pool insurance account,
   20  and to the  corporation  credit  support  account  such  moneys  as  are
   21  required to satisfy the mortgage insurance [reserve] fund requirement of
   22  such accounts.
   23    (d)  Moneys,  investments and cash equivalents of the special account,
   24  the single family pool insurance account [and], the project pool  insur-
   25  ance  account,  and the corporation credit support account shall be kept
   26  separate and shall not be commingled with each other or with  any  other
   27  accounts which may be established from time to time, except as otherwise
   28  authorized by this section.
   29    (e)  Moneys,  investments  and  cash equivalents of the pool insurance
   30  accounts and the corporation credit support account  shall  be  excluded
   31  from the excess balance calculation set forth in subdivision two of this
   32  section. However, if at any time the moneys, investments and cash equiv-
   33  alents  (valued  as  determined  by the agency) of either pool insurance
   34  account or the corporation credit  support  account  exceed  the  amount
   35  necessary  to  attain and maintain the credit rating or, with respect to
   36  corporation credit support, credit  worthiness  (as  determined  by  the
   37  agency)  required  to accomplish the purposes of such account the agency
   38  shall transfer such excess to the special account and such excess  shall
   39  be included in the excess balance calculation.
   40    1-a. All moneys held in the mortgage insurance fund, except as herein-
   41  after  provided,  shall  be used, as required, solely for the payment of
   42  the agency's liabilities arising from mortgages insured as  provided  in
   43  section  twenty-four  hundred  twenty-nine-a  of this [chapter] part and
   44  from the provision of corporation credit support as provided in  section
   45  twenty-four hundred twenty-eight-a of this part; provided, however, that
   46  no  moneys  shall be withdrawn from such fund at any time in such amount
   47  as would reduce the amount of the  special  account  [or],  either  pool
   48  insurance account or the corporation credit support account to less than
   49  the  mortgage  insurance  fund  requirement,  except  for the purpose of
   50  paying such liabilities as the same become due and for  the  payment  of
   51  which  other  moneys  of  the agency are not available. All payments [of
   52  insurance] pursuant to section twenty-four hundred twenty-nine-a of this
   53  [chapter] part, and expenses attributable thereto shall  be  debited  to
   54  the  special  account or the single family pool insurance account or the
   55  project  pool  insurance  account  or  the  corporation  credit  support
   56  account,  as appropriate, within the mortgage insurance fund.  All other
       S. 1406                            173                           A. 2106
 
    1  operating expenses of the agency with respect to insurance of  mortgages
    2  and providing corporation credit support shall be debited to the special
    3  account, the single family pool insurance account [or], the project pool
    4  insurance  account  or the corporation credit support account within the
    5  mortgage insurance fund, as appropriate.
    6    2. On or before March twentieth in each year, the board  of  directors
    7  of the agency shall determine the amount estimated to be received by the
    8  agency  from the additional tax imposed pursuant to subdivision one-a of
    9  section two hundred fifty-three of the tax  law  and  deposited  in  the
   10  mortgage  insurance  fund  and  credited to the special account plus any
   11  other monies deposited in such  account  plus  the  amount  of  reserves
   12  available  in  such  special account with respect to mortgage loans that
   13  were previously insured in accordance with section  twenty-four  hundred
   14  twenty-eight  or corporation credit support previously provided pursuant
   15  to section twenty-four hundred twenty-eight-a of this [title] part under
   16  contracts or commitments that have been satisfied or cancelled, pursuant
   17  to subdivision one of this section, except charges and  fees  levied  by
   18  the  agency  [in  connection  with  applications for mortgage insurance]
   19  pursuant to subdivision two of section twenty-four hundred twenty-nine-c
   20  of this [title] part, which shall be added in the computation only  when
   21  such a commitment [to insure] is cancelled or expires or when the insur-
   22  ance  or  contractual  arrangement to provide corporation credit support
   23  applied for is declared effective. Such determination made on or  before
   24  March  twentieth  in each year shall be made for the consecutive twelve-
   25  month period ending on the  subsequent  March  thirty-first.  The  board
   26  shall  then  determine  the  estimated  excess  balance, if any, in such
   27  special account by determining the amount by which such  credits  exceed
   28  twenty  per centum, or such other per [centum] centums or amounts as may
   29  have been established by the board of directors of the  agency  pursuant
   30  to  subdivision  seven  of  section  twenty-four hundred twenty-eight or
   31  section twenty-four hundred twenty-eight-a of this [title] part, of  the
   32  amounts  insured  or corporation credit support provided or committed to
   33  be insured or provided during such twelve-month period plus any payments
   34  by the agency during such twelve-month period on account of  a  mortgage
   35  or  corporation credit support contract entered into during such twelve-
   36  month period ending on  such  March  thirty-first,  plus  the  operating
   37  expenses  of  the agency during such twelve-month period with respect to
   38  insurance of mortgages or provision of corporation credit support, which
   39  amount may not exceed an amount determined and certified by the director
   40  of the budget, with notification to the chairman of the  senate  finance
   41  committee  and  chairman of the assembly ways and means committee. On or
   42  before May fifteenth, the board shall determine any  adjustment  to  the
   43  estimated  excess  balance  necessary  to  reflect the variance, if any,
   44  between such estimated excess balance  and  the  actual  excess  balance
   45  computed  as of March thirty-first, and shall certify such adjustment to
   46  the director of the budget. The agency shall include such adjustment  in
   47  the  estimated  excess  balance  determination  for the following fiscal
   48  year, unless otherwise instructed by the director  of  the  budget.  The
   49  agency  shall  submit  to the director of the budget an estimate of such
   50  operating expenses on or before the tenth business day in March of  each
   51  year and the director of the budget shall make such certification before
   52  March twentieth of each year.
   53    Upon  making  the  determination  of the estimated excess balance, the
   54  agency shall certify such determination to the director of  the  budget,
   55  the  chairmen  of the senate finance committee and the assembly ways and
   56  means committee, and the comptroller. Payment of such  actual  or  esti-
       S. 1406                            174                           A. 2106
 
    1  mated  excess balance shall be made within ninety days after March twen-
    2  tieth. The agency shall, at the direction of the director of the budget,
    3  pay such estimated or actual excess balance, if any,  from  the  special
    4  account  to  the  comptroller  for  deposit  to  the state general fund;
    5  provided, however, that if the aggregate amount in the  special  account
    6  as  of  such  date is less than the mortgage insurance fund requirement,
    7  the agency shall retain all or that portion of  any  such  estimated  or
    8  actual  excess balance in such special account necessary to increase the
    9  aggregate amount in such special account to the mortgage insurance  fund
   10  requirement. The director of the budget shall notify the chairmen of the
   11  senate  finance  committee and the assembly ways and means committee ten
   12  days prior to the issuance of the directive in respect to the payment of
   13  the estimated or actual excess balance to the general fund.
   14    Further provided, however, that the budget  to  be  submitted  to  the
   15  legislature  by  the governor pursuant to article seven of the constitu-
   16  tion shall separately state the  amount  of  such  estimated  or  actual
   17  excess balance determined as hereinabove prescribed, if any, which shall
   18  be  included in the monies and revenues estimated to be available during
   19  the current and ensuing fiscal years, respectively.
   20    3. The moneys in such fund shall be deposited in one or more banks  or
   21  trust  companies  designated in the manner provided by law, as deposito-
   22  ries of the funds of the state. The agency may invest the moneys in such
   23  fund in obligations specified in subdivision four of this  section.  Any
   24  interest  earned  or  capital gain realized on the money so deposited or
   25  invested shall accrue to and become part of such  fund.    The  separate
   26  identity  of such fund shall be maintained whether its assets consist of
   27  cash or investments or both.
   28    4. Moneys in such fund may be invested (a)  in  special  time  deposit
   29  accounts  in, or certificates of deposit issued by, a bank, trust compa-
   30  ny, savings bank or savings and loan association located and  authorized
   31  to  do business in this state, provided, however, that such time deposit
   32  account or certificate of deposit shall be payable within such  time  as
   33  the proceeds may be needed to meet expenditures estimated to be incurred
   34  by  the  agency  and  provided further that such time deposit account or
   35  certificate of deposit be secured by a  pledge  of  obligations  of  the
   36  United  States  of  America or obligations of the state, any city of the
   37  state, or other  municipal  corporation,  school  district  or  district
   38  corporation  of  the  state  or  obligations  of agencies of the federal
   39  government; or (b) in obligations of the United States of America or the
   40  state which may from time to time be legally purchased by savings  banks
   41  within the state as an investment of funds belonging to them or in their
   42  control,  or in obligations of the Federal National Mortgage Association
   43  provided such obligations shall be payable or redeemable at  the  option
   44  of  the  owner  within  such times as the proceeds may be needed to meet
   45  expenditures estimated to be incurred by the agency.
   46    5. In computing the amount of the  mortgage  insurance  fund  for  the
   47  purposes  of  this section, securities in which all or a portion of such
   48  fund shall be invested shall be valued at par if purchased at par, or if
   49  purchased at other than par, at amortized value. Amortized  value,  when
   50  used  with  respect  to  securities  purchased  at  a premium above or a
   51  discount below par, shall mean the value as of any given  date  obtained
   52  by dividing the total premiums or discount at which such securities were
   53  purchased  by  the  number of interest payments remaining to maturity on
   54  such securities after such purchase and by  multiplying  the  amount  so
   55  calculated  by  the number of interest payment dates having passed since
   56  the date of such purchase; and
       S. 1406                            175                           A. 2106
 
    1    (i) in the case of securities purchased at a premium by deducting  the
    2  product thus obtained from the purchase price, and
    3    (ii)  in  the case of securities purchased at a discount by adding the
    4  product thus obtained to the purchase price.
    5    6. The agency may create and establish such other fund or funds as may
    6  be necessary  or  desirable  for  the  carrying  out  of  its  corporate
    7  purposes.
    8    § 8. Section 2429-c of the public authorities law is amended by adding
    9  a new subdivision 5 to read as follows:
   10    5.  The  agency  may,  in its discretion, fix a premium charge for its
   11  provision of corporation credit support pursuant to this article.
   12    § 9. Section 19 of chapter 555 of the laws of 1989 amending the public
   13  authorities law and other laws relating to establishing a new  New  York
   14  state  infrastructure  trust fund, as amended by chapter 110 of the laws
   15  of 2001, is amended to read as follows:
   16    § 19. This act shall take effect immediately and shall  be  deemed  to
   17  have  been  in full force and effect on and after June 15, 1989 provided
   18  that the amendments to law effected by sections  six  and  nine  through
   19  seventeen of this act, as amended, shall cease to be of force and effect
   20  on  and  after July 16, 2003, on which date the provisions of the public
   21  authorities law amended by such sections shall be as they were in  force
   22  and  effect  immediately  prior  to this act taking effect, and provided
   23  however that the amendments to law effected by  sections  six  and  nine
   24  through  seventeen  of  this act, as amended, shall continue to apply to
   25  all commitments issued or policies  or  corporation  credit  support  in
   26  force  on  or before July 16, 2003, and provided further that the amend-
   27  ments to the law effected by section sixteen of this act shall not cease
   28  to be of force and effect prior to the time that  full  payment  of  all
   29  corporation credit support obligations has been made or provided for.
   30    §  10. Section 2410 of the public authorities law, as amended by chap-
   31  ter 788 of the laws of 1978, is amended to read as follows:
   32    § 2410. State and municipalities not liable on bonds, notes or  insur-
   33  ance  commitments or contracts or corporation credit support. The bonds,
   34  notes, insurance commitments or contracts or corporation credit  support
   35  and  other obligations of the agency shall not be a debt of the state of
   36  New York or of any municipality, and neither the state nor  any  munici-
   37  pality  shall  be  liable  thereon, nor shall they be payable out of any
   38  funds other than those of the agency.
   39    § 11. Section 2411 of the public authorities law, as amended by  chap-
   40  ter 788 of the laws of 1978, is amended to read as follows:
   41    §  2411.  Agreement  of  the  state. The state of New York does hereby
   42  pledge to and agree with the holders of any bonds or notes or any  mort-
   43  gage  insurance  contract  and any parties to contracts regarding corpo-
   44  ration credit support issued under this title that the  state  will  not
   45  limit  or  alter  the  rights hereby vested in the agency to fulfill the
   46  terms of any agreements made with,  respectively,  the  holders  or  the
   47  parties  thereof,  or  in any way impair the rights and remedies of such
   48  holders and such parties until such bonds or  notes  together  with  the
   49  interest  thereon, with interest on any unpaid installments of interest,
   50  [or] insurance contracts or corporation credit support and all costs and
   51  expenses in connection with any action or proceedings by or on behalf of
   52  such holders or such parties, are fully met and discharged.  The  agency
   53  is  authorized  to include this pledge and agreement of the state in any
   54  agreement with the holders of such bonds or notes or insurance contracts
   55  or parties to contracts regarding corporation credit support.
       S. 1406                            176                           A. 2106
 
    1    § 12. Severability clause. If any clause, sentence, paragraph, section
    2  or part of this act be adjudged by any court of  competent  jurisdiction
    3  to  be invalid, such judgment shall not affect, impair or invalidate the
    4  remainder hereof but shall be applied in its operation  to  the  clause,
    5  sentence,  paragraph,  section  or  part hereof directly involved in the
    6  controversy in which such judgment shall have been rendered.
    7    § 13. This act shall take effect immediately, provided, however, that:
    8    a. The comptroller of the state of New York shall notify the  legisla-
    9  tive bill drafting commission when full payment of all corporation cred-
   10  it  support  obligations  has  been  made or provided for, as enacted by
   11  section 19 of chapter 555 of the laws of 1989,  as  amended  by  section
   12  nine  of this act, in order that the commission may maintain an accurate
   13  and timely effective data base of the official text of the laws  of  the
   14  state  of New York in furtherance of effecting the provisions of section
   15  44 of the legislative law and section 70-b of the public officers law.
   16    b. The amendments to subdivisions 1 and 1-a of section 2429-b  of  the
   17  public  authorities  law,  made  by section seven of this act, shall not
   18  affect the expiration and reversion of such  subdivisions,  as  provided
   19  for  by  section  19  of  chapter  555  of the laws of 1989, as amended;
   20  provided, however, that in the event such subdivisions 1 and 1-a  expire
   21  and  are  repealed  pursuant  to  chapter  555  of  the laws of 1989, as
   22  amended, the amendments made to such subdivisions by  section  seven  of
   23  this act shall be deemed to have survived such expiration and repeal.
 
   24                                   PART EE
 
   25    Section  1. The opening paragraph and clause b of subparagraph (v) and
   26  subparagraph (vi) of paragraph (c) of subdivision 4 of  section  209  of
   27  the  civil  service  law, the opening paragraph and clause b of subpara-
   28  graph (v) as amended by chapter 216 of the laws of 1977 and subparagraph
   29  (vi) as amended by chapter 205 of the laws of 1997, are amended to  read
   30  as follows:
   31    the public arbitration panel shall make a just and reasonable determi-
   32  nation of the matters in dispute. In arriving at such determination, the
   33  panel  shall consider, above all other factors, the financial ability of
   34  the public employer to pay.  The public employer's ability to pay  shall
   35  be  defined  as existing fiscal capacity without resort to either new or
   36  increased taxation including, but not limited to, the level of  taxation
   37  in  the political subdivision compared to similar political subdivisions
   38  in other areas of the state, the tax  base,  any  evidence  of  economic
   39  decline  and  any  other  applicable  measures  of  fiscal  distress, or
   40  extraordinary reductions in other governmental expenditures.  The  arbi-
   41  tration panel shall also consider the competing financial obligations of
   42  the  public  employer  which  may  be affected by such determination and
   43  specifically the impact of any such  determination  on  ongoing  negoti-
   44  ations  or successor negotiations with employee organizations represent-
   45  ing other employees of the public employer. In the case  of  members  of
   46  any  organized  unit of troopers, commissioned or non-commissioned offi-
   47  cers of the division of state police, or  in  regard  to  investigators,
   48  senior  investigators  and  investigator  specialists of the division of
   49  state police, the arbitration panel shall, in  addition  to  the  above,
   50  consider  above all other factors, the overall fiscal environment of the
   51  state and shall give substantial consideration to the state's ability to
   52  pay without contributing to a budget deficit in current or future fiscal
   53  years. The arbitration panel shall specify its rationale in the determi-
   54  nation, including the  consideration  of  such  ability  of  the  public
       S. 1406                            177                           A. 2106
 
    1  employer  to  pay without resort to new or increased taxation. The panel
    2  shall specify the basis for its findings, taking into secondary  consid-
    3  eration, in addition to any other relevant factors, the following:
    4    b.  the interests and welfare of the public [and the financial ability
    5  of the public employer to pay];
    6    (vi) the determination of the public arbitration panel shall be  final
    7  and binding upon the parties for the period prescribed by the panel, but
    8  in no event shall such period exceed two years from the termination date
    9  of any previous collective bargaining agreement or if there is no previ-
   10  ous  collective bargaining agreement then for a period not to exceed two
   11  years from the date of determination by the  panel.  Such  determination
   12  shall  not  be  subject to the approval of any local legislative body or
   13  other municipal authority.   Notwithstanding  [the  provisions  of  this
   14  subparagraph  to the contrary, where the parties to a public arbitration
   15  are those anticipated by the provisions of paragraph (e) of this  subdi-
   16  vision  as established by chapter four hundred thirty-two of the laws of
   17  nineteen hundred ninety-five, such parties may agree to confer authority
   18  to the public arbitration panel to issue a final  and  binding  determi-
   19  nation  for  a  period up to and including four years] the provisions of
   20  this subparagraph to the contrary, where the parties to the public arbi-
   21  tration are those parties who became  subject  to  this  subdivision  by
   22  virtue  of chapter six hundred forty-one of the laws of nineteen hundred
   23  ninety-eight, the public arbitration panel shall have the  authority  to
   24  issue a final and binding determination for a period up to and including
   25  four years.
   26    §  2. Paragraph a of subdivision 5 of section 220 of the labor law, as
   27  amended by chapter 447 of the laws  of  1983,  is  amended  to  read  as
   28  follows:
   29    a. The "prevailing rate of wage," for the intents and purposes of this
   30  article,  shall be the rate of wage paid in the locality, as hereinafter
   31  defined, by [virtue of collective  bargaining  agreements  between  bona
   32  fide  labor organizations and] employers of the private sector, perform-
   33  ing public or private work provided that said employers employ at  least
   34  [thirty]  seventy-five  per  centum of workers, laborers or mechanics in
   35  the same trade or occupation in the locality where  the  work  is  being
   36  performed.  The  prevailing rate of wage shall be annually determined in
   37  accordance herewith by the fiscal officer  no  later  than  thirty  days
   38  prior  to  July  first of each year, and the prevailing rate of wage for
   39  the period commencing July first of such year  through  June  thirtieth,
   40  inclusive, of the following year shall be the rate of wage set forth [in
   41  such  collective  bargaining  agreements] for the period commencing July
   42  first through June thirtieth, including those increases for such  period
   43  which are directly ascertainable [from such collective bargaining agree-
   44  ments]  by  the  fiscal officer in his or her annual determination.  [In
   45  the event that it is determined after a contest, as provided in subdivi-
   46  sion six of this section, that less than thirty percent of the  workers,
   47  laborers or mechanics in a particular trade or occupation in the locali-
   48  ty  where  the  work is being performed receive a collectively bargained
   49  rate of wage, then the average wage paid to such  workers,  laborers  or
   50  mechanics  in  the  same  trade  or  occupation  in the locality for the
   51  twelve-month period preceding the fiscal officer's annual  determination
   52  shall be the prevailing rate of wage. Laborers, workers or mechanics for
   53  whom  a prevailing rate of wage is to be determined shall not be consid-
   54  ered in determining such prevailing wage.]
       S. 1406                            178                           A. 2106
 
    1    § 3. Paragraphs c and d of subdivision 5 of section 220 of  the  labor
    2  law,  paragraph  c as amended and paragraph d as added by chapter 447 of
    3  the laws of 1983, are amended to read as follows:
    4    c.  "Prevailing  practices  in  the  locality,"  for  the  intents and
    5  purposes of this article, shall be the  practice  of  providing  supple-
    6  ments,  as  hereinbefore  defined,  as provided by [virtue of collective
    7  bargaining agreements between bona fide labor organizations and] employ-
    8  ers of the private sector, performing public or  private  work  provided
    9  that  said employers employ at least [thirty] seventy-five per centum of
   10  workers, laborers or mechanics in the same trade or  occupation  in  the
   11  locality,  as  determined  by  the fiscal officer in accordance with the
   12  provisions herein.
   13    With respect to each supplement determined to be one of the prevailing
   14  practices in the locality, the amount of such supplement shall be deter-
   15  mined in the same manner and at the same times as the prevailing rate of
   16  wage is determined pursuant to this section.
   17    d. "Locality" means [such areas of the state described and defined for
   18  a trade or occupation in the current  collective  bargaining  agreements
   19  between  bona  fide  labor  organizations  and  employers of the private
   20  sector, performing public and private work] the geographic limit of  the
   21  public  entity  in which the public work is to be performed by a private
   22  sector employer performing public and private work. In the  event  there
   23  is  a  single employer of such workers, laborers or mechanics or no such
   24  workers, laborers, or mechanics in the same trade or occupation  in  the
   25  locality where the public work is to be performed, the locality shall be
   26  the nearest civil division that has more than one such employer.
   27    §  4.  Subdivision  6  of  section 220 of the labor law, as amended by
   28  chapter 230 of the laws of 1984, is amended to read as follows:
   29    6. The fiscal officer, may, and on the written request of  any  inter-
   30  ested  person  shall,  require any person or corporation performing such
   31  public work to file with such fiscal officer schedules  of  the  supple-
   32  ments  to  be  provided and wages to be paid to such laborers, [workmen]
   33  workers or mechanics.  Any such person or corporation shall, within  ten
   34  days  after the receipt of written notice of such requirement, file with
   35  the fiscal officer such schedules of wages and supplements. An  employer
   36  may contest a determination by the fiscal officer under paragraphs a and
   37  c  of  subdivision  five  of  this section. The employer must allege and
   38  prove by competent evidence, that  the  actual  percentage  of  workers,
   39  laborers  or  mechanics  is below the required [thirty] seventy-five per
   40  centum and during the pendency of  any  such  contest  and  until  final
   41  determination thereof, the work in question shall proceed under the rate
   42  established by the fiscal officer.
   43    §  5.  Subdivision c of section 119-n of the general municipal law, as
   44  amended by chapter 331 of the laws  of  1970,  is  amended  to  read  as
   45  follows:
   46    c.  The  term  "joint  service" means joint provision of any municipal
   47  facility,  service,  activity,  project  or  undertaking  or  the  joint
   48  performance  or  exercise  of  any  function  or power which each of the
   49  municipal corporations or districts has the power by any  other  general
   50  or  special  law  to  provide,  perform  or exercise, separately and, to
   51  effectuate the purposes of this  article,  shall  include  extension  of
   52  appropriate  territorial  jurisdiction necessary therefor.  For purposes
   53  of this article, each municipal corporation shall be deemed to have  the
   54  power  to  provide,  perform  or  exercise  a joint service which is the
   55  subject of an agreement entered into pursuant  to  section  one  hundred
   56  nineteen-o  of  this  article,  upon entering such agreement and for the
       S. 1406                            179                           A. 2106
 
    1  term of such agreement, where one or more municipal  corporations  which
    2  are  parties  to  the  agreement have such power by any other general or
    3  special law.
    4    §  6.  Subdivision 1 of section 119-o of the general municipal law, as
    5  amended by chapter 623 of the laws  of  1998,  is  amended  to  read  as
    6  follows:
    7    1. In addition to any other general or special powers vested in munic-
    8  ipal  corporations and districts for the performance of their respective
    9  functions,  powers  or duties on  an  individual, cooperative,  joint or
   10  contract basis, municipal corporations and districts shall have power to
   11  enter  into, amend, cancel and terminate agreements for the  performance
   12  among  themselves  or  one for the other of  their respective functions,
   13  powers  and  duties  on  a  cooperative  or  contract basis  or for  the
   14  provision of a joint service  or  a  joint  water,  sewage  or  drainage
   15  project.   Notwithstanding  the foregoing grant of authority, the tempo-
   16  rary investment of moneys  by  more  than one municipal corporation   or
   17  district  pursuant  to a municipal cooperation agreement which meets the
   18  definition of "cooperative investment agreement" as set forth in article
   19  three-A  of this chapter shall be in compliance with all of the require-
   20  ments of that article. Any agreement entered  into  hereunder  shall  be
   21  approved  by  each  participating municipal corporation or district by a
   22  majority vote  of  the  voting  strength of its governing body.    Where
   23  the  authority  of  any  municipal corporation or district to perform by
   24  itself any function, power and duty or to provide by itself any  facili-
   25  ty, service,  activity,  project or undertaking or the financing thereof
   26  is,  by any other general or  special  law, subject to a public hearing,
   27  a mandatory or permissive referendum, consents of  governmental    agen-
   28  cies,   or   other  requirements applicable  to the making of contracts,
   29  or where its authority to undertake such joint service  or  function  is
   30  accorded  upon  entering  the  agreement and at least one other party to
   31  such agreement is subject to one or more  such  requirements,  then  its
   32  right  to  participate  in    an  agreement hereunder shall be similarly
   33  conditioned.
   34    § 7. Section 3 of the public officers law is amended by adding  a  new
   35  subdivision 2-d to read as follows:
   36    2-d.  Neither  the  provisions  of  this  section, nor of any general,
   37  special or local law, charter,  code,  ordinance,  resolution,  rule  or
   38  regulation,  requiring a person to be a resident of the political subdi-
   39  vision or municipal corporation of the state for which he or  she  shall
   40  be  chosen or within which his or her official functions are required to
   41  be exercised, shall apply to the appointment or assignment of any  offi-
   42  cer to carry out any lawful function or duty related to the carrying out
   43  of  an  inter-municipal  agreement adopted pursuant to article five-G of
   44  the general municipal law. Nothing in this subdivision shall  invalidate
   45  any  prior  inter-municipal  agreement pursuant to article five-G of the
   46  general municipal law or any official acts conducted pursuant thereto.
   47    § 8. The general municipal law is amended by adding a new article 12-I
   48  to read as follows:
   49                                ARTICLE 12-I
   50        INTERMUNICIPAL AGREEMENTS TO SHARE REAL PROPERTY TAX REVENUES
 
   51  Section 239-bb. Intermunicipal agreements to  share  real  property  tax
   52             revenues.
   53    §  239-bb. Intermunicipal agreements to share real property tax reven-
   54  ues.  1. Legislative findings and intent.  The  legislature  finds  that
   55  local  governments  in New York are increasingly looking for new ways to
       S. 1406                            180                           A. 2106
 
    1  provide necessary services and foster prosperity within  their  communi-
    2  ties.  To  this  end,  they have long been provided under law with broad
    3  authority to act together for their mutual benefit by  forming  intermu-
    4  nicipal  agreements.  Such  agreements  have provided the means for many
    5  local governments to provide cost effective services  across  a  broader
    6  service  area.    Additionally,  intermunicipal agreements have provided
    7  many local  governments  with  the  mechanism  to  formulate  local  and
    8  regional  goals  for  the  provision  of services and advancing economic
    9  development. The legislature recognizes that  intermunicipal  agreements
   10  can  be an equally effective tool for achieving such goals by establish-
   11  ing a method for distributing real property tax  increments  which  have
   12  been determined to mutually benefit agreement participants. It is there-
   13  fore  within the public interest to authorize local governments to enter
   14  into intermunicipal agreements for the purpose of sharing real  property
   15  tax  revenues which derive from projects, services or development deemed
   16  by such participating local governments to be mutually beneficial.
   17    2. Intermunicipal agreements. Cities, towns and  villages  are  hereby
   18  authorized  to  enter  into  agreements with each other to delineate and
   19  establish geographic areas, which may include all or a portion  of  each
   20  municipality,  within  which  any subsequent tax increment may be appor-
   21  tioned among the municipalities in such manner  as  such  intermunicipal
   22  agreement shall provide.
   23    3.  Intermunicipal  agreements content. Such intermunicipal agreements
   24  shall (a) make a finding that the agreement will provide a public  bene-
   25  fit  to  each  participant  by  advancing  mutual or regional goals; (b)
   26  establish a process for identifying and determining the affected proper-
   27  ties or boundaries of the tax increment area; (c) identify the types  of
   28  taxes to be shared; (d) specify the percentage of tax revenues that each
   29  municipality  shall  receive  or  otherwise establish a formula or other
   30  means for determining such amount; (e) specify the duration  or  expira-
   31  tion  of  the  agreement;  and (f) include any other matter necessary or
   32  desirable to carry out the agreement.
   33    4. The tax increment shall be determined for this purpose as follows:
   34    (a) For each parcel within the delineated  area,  the  assessor  shall
   35  separately  state  on the assessment roll, in a manner prescribed by the
   36  state board of real property services, any increase in taxable  assessed
   37  value  of  that parcel which is attributable to the construction, alter-
   38  ation, installation or improvement of real property occurring since  the
   39  effective date of the intermunicipal agreement.
   40    (b)  Each participating municipality which contains some or all of the
   41  parcels in the delineated area shall determine  its  tax  rates  without
   42  regard  to  any  of  the  increases in taxable assessed value identified
   43  pursuant to paragraph (a) of this subdivision.
   44    (c) The tax rates so determined shall be applied to the entire taxable
   45  assessed value of each parcel within the delineated area, including  any
   46  increase  in  taxable  assessed value identified pursuant to subdivision
   47  (a) of this subdivision, and the taxes so imposed shall be collected and
   48  enforced in the usual manner, except that the taxes resulting  from  the
   49  application  of such tax rates to any such increases in taxable assessed
   50  value shall be segregated upon collection and distributed as provided in
   51  the intermunicipal agreement.
   52    5. In all respects not inconsistent herewith, the provisions of  arti-
   53  cle five-G of the general municipal law shall apply to such intermunici-
   54  pal agreements.
   55    § 9. The general municipal law is amended by adding a new article 17-A
   56  to read as follows:
       S. 1406                            181                           A. 2106
 
    1                                ARTICLE 17-A
    2                         LOCAL GOVERNMENT MERGERS LAW
    3  Section 750. Short title.
    4          751. Legislative intent.
    5          752. Definitions.
    6          753. Plan of merger.
    7          754. Ancillary agreements.
    8          755. Study committee.
    9          756. Public hearing.
   10          757. Adoption of plan of merger; election.
   11          758. Effect of merger; effective date.
   12          759. Elections for officers of the surviving local government.
   13          760. Effect on county boundaries; city charters.
   14          761. Services continued.
   15          762. Effect of merger on certain districts.
   16          763. Certain   districts  partially  within  a  surviving  local
   17                government.
   18          764. Sales and compensating use tax transitional provisions.
   19          765. Notification and submission of the plan of  merger;  agency
   20                assistance.
   21    §  750.  Short  title. This article shall be known and may be cited as
   22  the "local government mergers law".
   23    § 751.  Legislative intent. It is the intention of the legislature  by
   24  the enactment of this article to provide a local government mergers law,
   25  pursuant  to which adjoining local governments may merge their corporate
   26  structures through local initiative. The creation and evolution of local
   27  governments in this state has constituted a vital part  of  the  state's
   28  political  and  social  historical  development.  Local governments have
   29  provided a strong basis for local pride and identification,  yet  fiscal
   30  and  other needs may call for merger of the corporate structures. Proce-
   31  dures for merger should allow local initiative and implementation of the
   32  merger and should recognize and provide a mechanism for continuing local
   33  identification with governmental antecedents. Hamlets,  which  delineate
   34  geographic  areas  within the new government structure but without sepa-
   35  rate governmental powers, will provide this mechanism for  retention  of
   36  local  identification with traditional governmental entities. The powers
   37  accorded by this article shall be in addition to, and shall not serve to
   38  limit, any other powers now or hereafter conferred on local governments.
   39    § 752. Definitions. As used in this article, unless otherwise express-
   40  ly stated or unless the context otherwise requires, the following  terms
   41  shall mean:
   42    1.  "Local government". A town, village, city or county, except a city
   43  with a population over one million.
   44    2. "Merger". The procedure pursuant to this article through which  two
   45  or  more  local  governments  merge into a single local government which
   46  shall be one of the constituent local governments.
   47    3. "Constituent local government". A local government that is  partic-
   48  ipating in the merger with one or more other local governments.
   49    4. "Surviving local government". The constituent local government into
   50  which  one or more other constituent local governments are merged. Where
   51  one or more constituent local governments  is  a  county,  the  survivor
   52  shall be a county.
   53    5.  "Governing  board".  The  legislative  body of a constituent local
   54  government.
   55    6. "Adjoining". Two local governments having a common  boundary  line,
   56  however  small,  shall  be deemed to adjoin. More than two local govern-
       S. 1406                            182                           A. 2106
 
    1  ments shall be deemed to adjoin if each of them has  a  common  boundary
    2  line with any of the others. Local governments shall be deemed to adjoin
    3  where  a common boundary line lies along or within a public highway or a
    4  body  of water.   Where a local government is wholly included within the
    5  boundaries of another local government, such governments shall be deemed
    6  to adjoin.
    7    7. "Hamlet". A  geographic  designation  within  the  surviving  local
    8  government  which  may  identify a constituent local government's former
    9  boundaries for purposes of local place name identification.
   10    8. "Board of supervisors". A county board of supervisors  as  provided
   11  in section one hundred fifty of the county law.
   12    §  753.  Plan  of  merger. The governing body of each local government
   13  proposing to participate in a merger  pursuant  to  this  article  shall
   14  adopt a plan of merger, setting forth:
   15    1.  The  name  of  each  constituent local government, the name of the
   16  surviving local government and, where the name of  the  surviving  local
   17  government is to be changed, the new name of the surviving local govern-
   18  ment.
   19    2.  The  class  of  government  of the surviving local government, and
   20  details of the governmental structure to be implemented for the  surviv-
   21  ing local government.
   22    3.  A  plan  for  the disposition of property of the constituent local
   23  governments.
   24    4. A plan for the payment of outstanding obligations and the levy  and
   25  collection of the necessary taxes and assessments therefor.
   26    5.  A  plan  for the apportionment of responsibility and allocation of
   27  costs in the event of unanticipated  liability  incurred  prior  to  the
   28  merger.
   29    6.  The  effective  date  of  the  merger,  including a description of
   30  circumstances pursuant to which merger will not take place.
   31    7. Where the surviving local government will be a city which is  situ-
   32  ated  in  a  county  governed  by  a board of supervisors, the method of
   33  initial election of supervisors upon  approval  of  the  proposition  of
   34  merger. The number of supervisors to be so elected shall equal the total
   35  number  of  supervisors  for  the constituent local governments prior to
   36  merger.
   37    8. The names and geographic areas designated as hamlets of the surviv-
   38  ing local government, if any.
   39    9. A summary of any ancillary agreements entered into by the constitu-
   40  ent local governments prior to  or  which  will  be  entered  into  upon
   41  adoption of the proposed plan of merger.
   42    10.  Any other matter necessary or desirable to carry out the proposed
   43  merger.
   44    § 754. Ancillary agreements. The governing bodies of  the  constituent
   45  local  governments  may  adopt  such  ancillary  agreements necessary or
   46  desirable to effect the merger pursuant to the proposed plan of  merger.
   47  Ancillary  agreements  may  address  any  matter  relating to the merger
   48  including but not limited to  the  continuance  of  government,  interim
   49  officers,  continuance  of services upon merger of the constituent local
   50  governments, a description of circumstances upon which merger shall  not
   51  take place, and any matter relating to transition of government prior to
   52  or  upon the effective date of merger. The governing bodies of constitu-
   53  ent local governments proposing to enter into such agreements shall hold
   54  a joint public hearing thereon prior to adoption in the manner  provided
   55  by  section  seven  hundred fifty-six of this article and may be held in
   56  conjunction with a public hearing on a plan of merger.
       S. 1406                            183                           A. 2106
 
    1    § 755. Study  committee.  The  governing  boards  of  adjoining  local
    2  governments may appoint a joint study committee on merger. The committee
    3  shall  be  composed  of at least one appointee from each adjoining local
    4  government. Such committee shall organize and form such subcommittees as
    5  it  deems  necessary or desirable.  It shall make a report or reports to
    6  the governing boards which created  it.  The  report  or  reports  shall
    7  consider  and  make  recommendations,  where  desirable,  regarding  any
    8  subject addressed in a plan of merger,  ancillary  agreements,  and  any
    9  other related matter it deems necessary or desirable to address.
   10    §  756.  Public  hearing.  Prior to adoption of the plan of merger the
   11  governing boards of the constituent local governments  shall  conduct  a
   12  joint  public  hearing  on the proposed plan of merger upon at least ten
   13  and not more than twenty days notice. Such governing board  shall  cause
   14  notice  of  such  public  hearing to be published once in their official
   15  newspapers, or, if there is no official newspaper, in a newspaper having
   16  general circulation in the area of such local governments. The  proposed
   17  plan  of  merger  and  any  ancillary  agreements shall be available for
   18  public inspection at  each  constituent  local  government  offices  and
   19  copies  thereof  may  be  made  available  without charge or at a charge
   20  consistent with section eighty-seven of the public officers law.
   21    § 757. Adoption of plan of merger; election. 1. Upon adoption  of  the
   22  plan  of merger by each governing board of the constituent local govern-
   23  ments, a proposition for merger containing such plan shall be  submitted
   24  to  the  qualified electors of each constituent local government, at the
   25  next succeeding general election held after the last date of adoption of
   26  the plan of merger by a constituent local government.
   27    2. The adopted plan of  merger,  or  an  abstract  thereof,  shall  be
   28  published in the same manner as notice of the public hearing required by
   29  this  article  within  twenty  days of adoption by the constituent local
   30  governments.
   31    3.  The  proposition  to  be  voted  upon  shall  state:  "Shall   the
   32  _______________________  (names  of  constituent  local  governments) be
   33  merged to become the _______________________ (name  of  surviving  local
   34  government)  pursuant  to  the  adopted plan of merger?" The proposition
   35  shall also contain an  abstract  of  such  plan  concisely  stating  the
   36  purpose  and  effect thereof. Such proposition shall be submitted to and
   37  approved by the local governing body of each constituent  local  govern-
   38  ment  prior to its submission to the qualified electors pursuant to this
   39  article.
   40    4. If such proposition is approved by  a  majority  of  the  qualified
   41  electors  of each constituent local government voting thereon, a certif-
   42  icate of such election shall be filed with the secretary of state,  with
   43  the  clerks  of each constituent local government and with the clerks of
   44  each county in which any part of the constituent  local  governments  is
   45  situated.
   46    §  758.  Effect of merger; effective date. 1. Upon the effective date,
   47  the constituent local government shall merge into  the  surviving  local
   48  government. Such survivor shall possess all powers accorded by law as to
   49  the areas of constituent local governments.
   50    2.  Unless  the  plan or ancillary agreements shall provide otherwise,
   51  the outstanding debts and obligations of the constituent  local  govern-
   52  ments shall be assumed by the surviving local government and be a charge
   53  upon  the  taxable  property  within  the  limits of the surviving local
   54  government and collected in the same manner as surviving  local  govern-
   55  ment  taxes.  The  surviving  local  government shall be responsible for
   56  satisfaction of any  outstanding  obligations  between  any  constituent
       S. 1406                            184                           A. 2106
 
    1  local  government and the state of New York.  The governing board of the
    2  surviving local government merged shall have all powers with respect  to
    3  such  debts  and  obligations as the governing boards of the constituent
    4  local  governments.  All  indebtedness  incurred on behalf of special or
    5  improvement districts shall remain as if such local governments had  not
    6  merged,  including  the power to issue bonds to redeem bond anticipation
    7  notes issued by the constituent local governments.
    8    3. Unless the plan shall provide  otherwise,  all  local  laws,  ordi-
    9  nances,  rules  or  regulations  of the constituent local governments in
   10  effect on the date of the merger, including but not  limited  to  zoning
   11  ordinances  or  local  laws,  shall remain in effect for a period of two
   12  years following merger as if they had been duly adopted by the surviving
   13  local government and shall be enforced by the surviving local government
   14  within the limits of the surviving  local  government  except  that  the
   15  surviving  local government shall have the power at any time to amend or
   16  repeal such local laws, ordinances, rules or regulations in  the  manner
   17  as  other  local laws, ordinances, rules or regulations of the surviving
   18  local government.
   19    4. Upon merger, all records, books and papers of the constituent local
   20  governments shall be deposited with the clerk  of  the  surviving  local
   21  government  and  they  shall  thereupon  become records of the surviving
   22  local government.
   23    5. No action or claim for or against any constituent local  government
   24  shall be affected by reason of its merger into another local government.
   25    6.  At  least  sixty  days  prior to the effective date of merger, the
   26  governing boards of the constituent local governments, with  the  excep-
   27  tion  of  the  surviving  local government, shall present the assessment
   28  rolls of their respective governments to the  legislative  body  of  the
   29  county.  Such legislative body shall cause each of the assessments ther-
   30  eon  to be transferred and added to the assessment roll of the surviving
   31  local government and all of the assessments so  transferred  shall  upon
   32  the  effective  date of merger, for tax purposes, be part of the taxable
   33  property and assessments of the surviving local government.
   34    7. Unless the plan of merger provides  otherwise,  merger  shall  take
   35  effect  at the expiration of the thirty-first day of December in the odd
   36  numbered year following the year in which such ratification occurred.
   37    § 759. Elections for officers of the surviving local government. Where
   38  a proposition for merger is approved by the electors  pursuant  to  this
   39  article,  unless  the  plan  of merger provides otherwise, elections for
   40  officers of the surviving local government shall be held on the  Tuesday
   41  succeeding the first Monday in November in the odd numbered year follow-
   42  ing  the year in which such approval occurred. In the event such surviv-
   43  ing local government is a city situated in whole or  in  part  within  a
   44  county  governed  by a board of supervisors, such officers shall include
   45  supervisors as provided for in the plan of merger approved by the  elec-
   46  tors.  Such  officers  shall  take office upon the effective date of the
   47  merger.
   48    § 760. Effect on county boundaries; city charters. 1. Except where two
   49  or more constituent local governments  are  counties,  merger  of  local
   50  governments pursuant to this article shall not affect any existing coun-
   51  ty boundaries.
   52    2.  In the event the surviving local government is a city or a charter
   53  county, such charter shall be  amended  as  necessary  or  desirable  to
   54  reflect  the merger. In any event, upon the effective date of such merg-
   55  er, the city or county shall possess all powers accorded by such charter
       S. 1406                            185                           A. 2106
 
    1  as to the areas of the constituent local  governments,  pending  charter
    2  amendment.
    3    §  761.  Services  continued. 1. Unless the plan provides otherwise or
    4  unless limited by operation of  law,  such  surviving  local  government
    5  shall continue to perform and to render to and in each constituent local
    6  government  area all those functions and services performed and rendered
    7  by such constituent local government therein and therefor on the date of
    8  adoption of the plan of merger.
    9    2. Unless the plan of merger provides otherwise, any town  improvement
   10  district  and  any fire district, fire protection district or fire alarm
   11  district partially located in a constituent local government which  upon
   12  the  merger would by operation of law or could pursuant to law, cease to
   13  exist in such surviving local government shall, from the  date  of  such
   14  merger  until  the  first day of June following the first day of January
   15  next succeeding such date of merger, continue to perform and  to  render
   16  to and in such constituent local government area all those functions and
   17  services rendered by it therein and therefor on the date of the adoption
   18  of the plan of merger.
   19    3.  The  cost  and expense of so performing and so rendering functions
   20  and services continued pursuant  to  this  section  shall  be  budgeted,
   21  levied  upon,  assessed against and collected from the area served as if
   22  no merger had taken place.
   23    § 762. Effect of merger on certain districts. 1. If  on  the  date  of
   24  merger the surviving local government wholly includes the territory of a
   25  fire  district, fire protection district, fire alarm district, or a town
   26  special improvement district, and the surviving local  government  is  a
   27  village  or  city,  such district shall cease to exist at the end of the
   28  fiscal year of such district  next  following  the  first  day  of  June
   29  following  the  first day of January next succeeding the date of merger.
   30  Except as otherwise provided in this section, the powers and  duties  of
   31  the  governing  body  of  the  district  and  of all the officers of the
   32  district in connection therewith shall then  cease,  and  any  board  of
   33  commissioners,  any  office  of commissioner and any other office of any
   34  such district shall also cease to exist at such time.
   35    2. a. The obligations and the contracts of a district which  shall  so
   36  cease to exist and the obligations and contracts of a town for the bene-
   37  fit  of  or  chargeable to such a district shall not be impaired by this
   38  section.
   39    b. Notwithstanding the dissolution of  a  district  pursuant  to  this
   40  section:
   41    (i)  an  amount  shall be levied by the surviving local government and
   42  collected annually from the district sufficient to pay in regular course
   43  the principal of and interest on all bonds or obligations issued  pursu-
   44  ant to the local finance law, section one hundred nine-b of this chapter
   45  or  otherwise by or on behalf of such district which are outstanding and
   46  unpaid as of the date of the dissolution of the  district.  Such  annual
   47  levy  and collection shall continue until all such outstanding bonds and
   48  obligations are paid in full;
   49    (ii) all levies, assessments, fees, rates  or  other  charges  of  the
   50  district  unpaid  as  of  the  date of dissolution and all penalties and
   51  interest thereon shall be collected;
   52    (iii) all moneys collected under subparagraph (ii) of  this  paragraph
   53  which  would be available for district purposes if the district were not
   54  dissolved shall be applied to the payment  of  all  obligations  of  the
   55  district,  other  than those described in subparagraph (i) of this para-
   56  graph, which are due and payable at the time of the dissolution  of  the
       S. 1406                            186                           A. 2106
 
    1  district. All such moneys so collected and not required for such purpose
    2  shall  be paid over to the fiscal officer of the surviving local govern-
    3  ment;
    4    (iv)  the  levies, collections and payments described in subparagraphs
    5  (i), (ii) and (iii) of this paragraph shall be made in the  same  manner
    6  as  if the district had not been dissolved, except that for the purposes
    7  of this paragraph:
    8    (A) if a fire district is dissolved,  the  legislative  board  of  the
    9  surviving  local  government  shall constitute the board of fire commis-
   10  sioners of the former fire district; and
   11    (B) if a district other than a fire district is dissolved, the  powers
   12  of  the  governing body of the district shall be exercised and performed
   13  by the legislative body of the surviving local government; and
   14    (v) in lieu of the requirements set forth in subparagraph (i) of  this
   15  paragraph,  the  legislative  body  of the surviving local government by
   16  resolution subject  to  permissive  referendum,  may  provide  that  the
   17  surviving  local government shall assume responsibility for the levy and
   18  collection, as a general charge, of all  amounts  required  to  pay  the
   19  bonds  or  obligations  therein  described.  In such event the surviving
   20  local government shall annually pay an  amount  sufficient  to  pay  the
   21  principal  and  interest on such bonds or obligations as same become due
   22  and payable in regular course. Payment shall be  made  directly  to  the
   23  holder  of  such bonds or obligations. Nothing contained in this section
   24  shall prevent the surviving local government from prepaying or redeeming
   25  such bonds or obligations in whole or in  part  provided  the  bonds  or
   26  obligations permit such part payment or redemption.
   27    c. All contracts of or on behalf of and chargeable to a district which
   28  ceases  to  exist pursuant to this article, including all amounts unpaid
   29  under such contracts but excluding all amounts unpaid  thereunder  which
   30  were  due and payable at the time of dissolution of such district, other
   31  than obligations incurred pursuant to the local  finance  law  and,  or,
   32  section one hundred nine-b of this chapter shall, to the extent they are
   33  the  responsibility  of  or beneficial to such a district, be assumed by
   34  the surviving local government and all expenditures under such contracts
   35  shall be charged as provided in this subdivision. The terms  and  condi-
   36  tions  and  all  rights  of  or on behalf of the district, including any
   37  right of amendment or rescission of such contract, shall  inure  to  the
   38  benefit of the surviving local government.
   39    3.  Upon  a  district  ceasing to exist hereunder, all property of the
   40  district shall automatically become the property of the surviving  local
   41  government  and,  in  connection  therewith,  the governing body and any
   42  other officer or person empowered to transfer title  to  or  having  the
   43  custody  or  control  of  any  moneys  of such district, any moneys in a
   44  reserve fund, any real or personal property of such district or used  or
   45  applied for the purposes of such district, any policies of insurance for
   46  the benefit of such district, any documents, instruments and other muni-
   47  ment  of  title  to district property and of any official books, records
   48  and other data relating to the operation and management of such district
   49  shall prepare or cause to be prepared an inventory of all such property,
   50  shall certify same, shall deliver same to the  clerk  of  the  surviving
   51  local government and shall:
   52    a.  pay  over  to the fiscal officer of the surviving local government
   53  all such moneys except so much thereof as was collected for the  purpose
   54  of paying principal of and interest on bonds or other obligations issued
   55  pursuant  to  the  local finance law, section one hundred nine-b of this
   56  chapter or otherwise by or on behalf of the district and further  except
       S. 1406                            187                           A. 2106
 
    1  so  much  of  the balance of such moneys as may be required to pay those
    2  obligations of the district. The fiscal officer of the  surviving  local
    3  government  on  receipt  of  such moneys, shall set same aside and apply
    4  them  pursuant  to  law  to the purposes of the district which ceases to
    5  exist hereunder so long as the surviving local government  continues  to
    6  provide  the service or function thereof and thereafter to be applied in
    7  reduction of taxes levied against the  area  of  such  former  district;
    8  provided,  however,  that  so  long  as  the  surviving local government
    9  provides the service or function of the former district any moneys  held
   10  by  or  on  behalf  of  a  district  in  a  reserve  fund subject to the
   11  provisions of article two of this chapter or section fifty-five-a of the
   12  town law shall be held and administered by the surviving  local  govern-
   13  ment  as  a  reserve  fund subject to those provisions of article two of
   14  this chapter for the same or similar purpose for which any such fund was
   15  established;
   16    b. transfer, assign and convey to the surviving local  government  the
   17  title to all such real or personal property;
   18    c.  assign  such  policies of insurance and its interest thereunder to
   19  the extent permitted therein to the surviving local government;
   20    d. surrender and deliver all such insurance policies,  books,  records
   21  and other data to the clerk of the surviving local government. Copies of
   22  official  books,  records  and  other data relating to the operation and
   23  management of such district and certified by the officer responsible for
   24  same shall be sufficient to satisfy the requirements of this  paragraph.
   25  No  fees  or expenses shall be charged for the making of such copies and
   26  same shall be entitled to the same admissibility in evidence in a  court
   27  proceeding as the originals thereof; and
   28    e.  surrender  and  deliver  all  other such personal property to such
   29  officer, employee, board or commission as the legislative board  of  the
   30  surviving local government shall designate. The failure of the governing
   31  body  or  any other officer or person to comply with the requirements of
   32  this subdivision shall in no way impair the automatic  transfer  to  the
   33  surviving  local  government  of  the  right,  title  or interest of the
   34  district of, in or to such property.
   35    4. Upon a district ceasing to exist pursuant to this article and until
   36  such time as the surviving local government may discontinue the  service
   37  or  function  of  such  former  district, such service or function shall
   38  become a service or function of the surviving local government and shall
   39  be continued as, in the discretion of the  surviving  local  government,
   40  may  be  needed  in all territory which previously received same and the
   41  legislative board shall have all the powers and duties granted by law in
   42  connection with such service or  function  and  such  additional  powers
   43  formerly held by the governing body or any officer of the district which
   44  may  be  necessary  to continue the service or function of the district,
   45  provided, however:
   46    a. if the limits of a district which ceases to exist pursuant to  this
   47  article  are  wholly  within  but  are not coterminous with those of the
   48  surviving local government and the service or function formerly provided
   49  by such district is not  extended  outside  the  limits  of  the  former
   50  district,  all the costs and expenses of such service or function may be
   51  chargeable only to the territory of such former district;
   52    b. if the limits of a district which ceases to exist pursuant to  this
   53  article  are  wholly  within  but  are not coterminous with those of the
   54  surviving local government and the service or function formerly provided
   55  by such district is extended outside the limits of such former district,
   56  so much of all costs and expenses of such extension of service or  func-
       S. 1406                            188                           A. 2106
 
    1  tion  to  such outside territory as is represented by the payment of the
    2  principal and interest on obligations incurred therefor by the surviving
    3  local government pursuant to  the  local  finance  law  or  section  one
    4  hundred  nine-b  of this chapter may be chargeable to and collected from
    5  such outside territory; and all other costs and expenses of such service
    6  or function may be chargeable only to that part of the entire  territory
    7  of  the  surviving local government in which such service or function is
    8  provided. In any event and regardless of the  territory  to  which  such
    9  other  costs  and  expenses may be made chargeable, same shall be appor-
   10  tioned and collected uniformly and without  discrimination  within  such
   11  territory;
   12    c.  upon  any fire district ceasing to exist pursuant to this article,
   13  all fire, hose, protection or hook and ladder companies and all  author-
   14  ized  squads  or other units of such district, including the memberships
   15  thereof, shall continue to exist and may merge or consolidate  with  any
   16  existing company as provided by law. All such companies, squads or units
   17  shall thereafter be subject to and governed by all the provisions of law
   18  regulating  and  pertaining  to  any such company, squad or unit or fire
   19  department of a village or city as the case may be; and
   20    d. all officers and employees of any district which  ceases  to  exist
   21  pursuant to this article shall to the greatest extent practicable in the
   22  discretion  of the legislative body of the surviving local government be
   23  continued in the same or similar positions as employees of the surviving
   24  local government and in connection therewith, shall have all the  rights
   25  provided  by the civil service law as if their former positions with the
   26  district had originally been established by the surviving local  govern-
   27  ment.
   28    5. The legislative board of the surviving local government at any time
   29  by  local  law  may  discontinue  the  service or function of the former
   30  district in all or any part of the surviving local government; provided,
   31  however, that any such local law shall be subject to a permissive refer-
   32  endum of the qualified voters in the territory receiving the service  or
   33  function  at the time of the adoption of such local law and in which the
   34  service or function is proposed to be discontinued. For the  purpose  of
   35  such  referendum  such  territory shall be considered as if it comprised
   36  the entire territory of the surviving local government.
   37    6. This section shall not apply to any special assessment area or  any
   38  area  of  assessment for benefit the boundaries of which are coterminous
   39  with or wholly included within the limits of the surviving local govern-
   40  ment which was established only to pay the original cost of any  special
   41  improvement  or facility or any addition thereto, benefitting such area.
   42  As to any such area the assessments therein established  shall  continue
   43  to  be levied and collected as if the merger had not taken place. Howev-
   44  er, any such publicly owned improvement or  facility  shall  become  the
   45  property  of  the  surviving  local  government  in  the  same manner as
   46  provided in  subdivision  three  of  this  section  for  property  of  a
   47  district.
   48    7.  Any  other special assessment area or any other area of assessment
   49  for benefit the boundaries of  which  are  coterminous  with  or  wholly
   50  included  within  the  limits  of  a surviving local government shall be
   51  considered as a district subject to the provisions of this  section  and
   52  chapter if same was established not only to pay the original cost of any
   53  special  improvement  or facility, or any additional cost thereto, bene-
   54  fitting such area but also to pay the cost  of  the  operation,  mainte-
   55  nance, repair or replacement thereof.
       S. 1406                            189                           A. 2106
 
    1    §  763.  Certain  districts partially within a surviving local govern-
    2  ment. 1. If the surviving local government includes within  its  bounda-
    3  ries  part  of  a  fire  district,  fire protection district, fire alarm
    4  district or a  town  special  improvement  district,  the  territory  so
    5  included  within  the boundaries of the surviving local government shall
    6  not be relieved from bearing its proportionate share of any liability or
    7  indebtedness incurred for such district purposes  while  such  territory
    8  was  a  part of such district and until such liability is discharged, or
    9  such indebtedness paid the proportionate share to which  such  territory
   10  would  be  liable  if  it had not been included in the boundaries of the
   11  surviving local government shall be levied upon, assessed and  collected
   12  from  such  territory  by  the  proper  officers of such surviving local
   13  government in the same manner as if such territory had not been included
   14  within the boundaries of the surviving local government. All  moneys  so
   15  collected  shall be paid over from time to time by the fiscal officer of
   16  the surviving local government to the supervisor of the  town  in  which
   17  the  remainder  of such district is located to discharge such liability.
   18  The collector or receiver of taxes of such town and the treasurer  of  a
   19  county shall continue in the execution of their duties in respect to the
   20  property  included  in  the  boundaries  of a surviving local government
   21  until they shall have collected the taxes authorized or assessed for the
   22  year of such merger or which have been extended on the  town  assessment
   23  roll  and  become a lien after such merger and pay to the fiscal officer
   24  of the surviving local government when collected the taxes  extended  on
   25  the  assessment roll against property within the surviving local govern-
   26  ment for district purposes.
   27    2. If the territory of the surviving local government includes  within
   28  its boundaries part of such a town district, the proportion of the bond-
   29  ed debt incurred or obligations incurred pursuant to section one hundred
   30  nine-b  of  this  chapter  by  the town and payable by a tax against the
   31  property within any such district for whose benefit the bonds  or  obli-
   32  gations  were  issued  which  shall  be  assumed  by the surviving local
   33  government and the apportionment of personal and real property belonging
   34  to the special district shall be determined according  to  the  relative
   35  assessed  valuation of the personal and real property in that portion of
   36  the special district without the surviving  local  government  and  that
   37  portion  within  the surviving local government in the following manner:
   38  the town board of the town when acting as a board for a district or  the
   39  commissioner  or  commissioners of a district where the special district
   40  is managed by a commissioner or commissioners and the governing board of
   41  the surviving local government being unable to agree within  six  months
   42  after  the  merger upon the proportion of the debt and the apportionment
   43  of the personal and real property, then the  supreme  court  shall  have
   44  power to determine such division and to enforce such award, division and
   45  determination as shall be made in the premises in a suit in equity to be
   46  brought in the name of either of the said parties.
   47    §  764.  Sales  and  compensating  use tax transitional provisions. 1.
   48  Where the surviving local government in a merger occurring  pursuant  to
   49  this  article is a county or a city which is imposing a tax, which is in
   50  effect on the effective date of the merger, pursuant to the authority of
   51  subpart B of part I of article twenty-nine of  the  tax  law,  such  tax
   52  shall  continue  in  full  force  and  effect and shall apply within the
   53  entire area of such surviving local government as the territorial limits
   54  of such area are constituted on the effective date of such  merger.  Any
   55  such imposition shall be subject to the provisions of such article twen-
       S. 1406                            190                           A. 2106
 
    1  ty-nine  including  provisions  relating  to  the  imposition, repeal or
    2  suspension of the tax by local law, ordinance or resolution.
    3    2.  Notwithstanding  subdivision three of section seven hundred fifty-
    4  eight of this article, any such  tax  imposed  by  a  constituent  local
    5  government which is not the surviving local government shall cease to be
    6  in effect as of the effective date of such merger.
    7    §  765.  Notification  and  submission  of  the plan of merger; agency
    8  assistance. At least one hundred twenty days prior to the effective date
    9  of a merger, the constituent local governments shall  notify  the  state
   10  division  of the budget, the office of the state comptroller, the office
   11  of real property services and the commissioner of taxation  and  finance
   12  of  the  scheduled merger, and shall submit to such agencies the plan of
   13  merger and any ancillary agreements, contracts or other legally  binding
   14  agreements. Upon related request, the above named agencies shall provide
   15  any  information  or  technical support to the constituent local govern-
   16  ments, to the extent available within the agency and not  prohibited  by
   17  any  provision of law providing for the confidentiality of such informa-
   18  tion, to help effectuate the merger of such local governments.
   19    § 10. Subdivision 1 of section 19-1900 of the village law, as  amended
   20  by chapter 101 of the laws of 1997, is amended to read as follows:
   21    1.  The  board  of trustees of any village may, and upon a petition of
   22  the electors of the village shall, adopt a plan for  dissolution  and  a
   23  resolution  submitting  a proposition for the dissolution of the village
   24  in accordance with the permissive referendum  article,  except  that  in
   25  determining  the  date  for  submission  of  the proposition pursuant to
   26  section 9-912 of this chapter, the date of the public hearing under this
   27  article shall be used and not the date that the question is presented. A
   28  petition to dissolve  a  village  shall  be  sufficient  if  signed  and
   29  acknowledged  or proved by qualified electors of such village, in number
   30  equal to at least one-third of the total  number  of  resident  electors
   31  residing  in  the village, qualified to vote at the last general village
   32  or special village election immediately preceding the submission of  the
   33  proposition  in  question,  and who signed the petition not earlier than
   34  one hundred twenty days prior to filing thereof.
   35    § 11. The village law is amended by adding a new  section  19-1901  to
   36  read as follows:
   37    §  19-1901  Study  committee  and  dissolution  report.  Prior  to the
   38  approval of a proposition for dissolution, the village board of trustees
   39  shall appoint a study committee on the dissolution of the  village.  The
   40  study  committee shall include at least two representatives of each town
   41  or towns in which the village is situated and such representatives shall
   42  reside in the portion of such town or towns outside such  village.  Such
   43  committee  shall organize and form such subcommittees as it deems neces-
   44  sary or desirable to undertake its report. It shall make a report to the
   45  village board of trustees within the time period set by  such  board.  A
   46  copy  of such report shall also be sent to the supervisor of the town or
   47  towns in which the village is situated. The  report  shall  address  all
   48  topics  included  in a plan for dissolution, alternatives to dissolution
   49  and may propose a plan for dissolution for consideration by the  village
   50  board  of  trustees.  Prior  to  submission of the report to the village
   51  board of trustees, the study committee shall hold at  least  one  public
   52  hearing  upon  at  least twenty days' notice to be published in official
   53  newspapers of the village and town or towns.
   54    § 12. Section 19-1902 of  the  village  law  is  amended  to  read  as
   55  follows:
       S. 1406                            191                           A. 2106
 
    1    §  19-1902  Public hearing. Prior to the submission of the proposition
    2  pursuant to subdivision one of section 19-1900, the  board  of  trustees
    3  shall  conduct  a  public  hearing  on  the  proposed dissolution of the
    4  village [on notice].  Notice of the public hearing shall  be  mailed  by
    5  certified  or  registered mail to the supervisor of the town or towns in
    6  which the village is situated and notice shall be published at least ten
    7  but not more than twenty days before such hearing in the official [news-
    8  paper] newspapers of the village and the town or towns.
    9    § 13. The village law is amended by adding a new  section  19-1903  to
   10  read as follows:
   11    § 19-1903 Plan for dissolution. The plan for dissolution shall address
   12  the following:
   13    1. The disposition of property of the village.
   14    2.  The payment of outstanding obligations and the levy and collection
   15  of the necessary taxes and assessments therefor.
   16    3. The transfer or elimination of public employees.
   17    4. Any agreements entered into with the town or  towns  in  which  the
   18  village is situated in order to carry out the plan for dissolution.
   19    5.  Whether  any  local  laws, ordinances, rules or regulations of the
   20  village in effect on the date of the dissolution of  the  village  shall
   21  remain  in effect for a period of time other than as provided by section
   22  19-1910 of this article.
   23    6. The continuation of village functions or services by the town.
   24    7. A fiscal analysis of the effect of dissolution on the  village  and
   25  the area of the town or towns outside of the village.
   26    8.  Any  other matters desirable or necessary to carry out the dissol-
   27  ution.
   28    § 14. Subdivision 2 of section 19-1904 of the village law  is  amended
   29  to read as follows:
   30    2.  Upon  adoption  by  the  board of trustees of such resolution, the
   31  proposition and plan shall be mailed by certified or registered mail  to
   32  the supervisor of the town or towns in which the village is situated and
   33  published in full in the official newspaper of the village.
   34    §  15.  Subdivision 9 of section 54 of the state finance law, as added
   35  by chapter 68 of the laws of 2002, is amended to read as follows:
   36    [9. a. Notwithstanding any inconsistent provision of this  section  or
   37  of  any  other  provision of law to the contrary, the payment of general
   38  purpose local government aid for the support of local government for the
   39  state fiscal year commencing April first, two thousand two shall be paid
   40  from an appropriation made for such purposes  pursuant  to  the  general
   41  government  budget in a manner consistent with this subdivision.  Subdi-
   42  visions one through eight of this section shall not be applicable to the
   43  payment of per capita state aid for the support of local government.
   44    b. Notwithstanding any inconsistent provision of article five  of  the
   45  general  construction  law,  in  the fiscal year of the state commencing
   46  April first, two thousand two  any  city  having  a  population  of  one
   47  million  or more shall be entitled to receive the same amount of general
   48  purpose local government aid that it received for such purpose  pursuant
   49  to  chapter  fifty  of  the  laws  of two thousand one, constituting the
   50  general government budget, and section fifty-four of the  state  finance
   51  law,  as  added  by section twelve of chapter four hundred thirty of the
   52  laws of nineteen hundred ninety-seven, as  if  the  provisions  of  such
   53  section  fifty-four  were  in full force and effect for the entire state
   54  fiscal year commencing April first, two thousand two. Except as provided
   55  in paragraph c of this subdivision,  each  city,  other  than  any  city
   56  having  a  population  of one million or more, town and village that was
       S. 1406                            192                           A. 2106
 
    1  appropriated general purpose local government aid  pursuant  to  chapter
    2  fifty  of  the  laws  of two thousand one shall be entitled to receive a
    3  total of one hundred five percent of the amount of aid that it would  be
    4  entitled  to  receive under section fifty-four of the state finance law,
    5  as added by section twelve of chapter four hundred thirty of the laws of
    6  nineteen hundred ninety-seven, as if  the  provisions  of  such  section
    7  fifty-four  were  in  full  force and effect for the entire state fiscal
    8  year commencing April  first,  two  thousand  two.  Notwithstanding  the
    9  provisions of this subdivision in the state fiscal year commencing April
   10  first,  two thousand two, the village of East Nassau, Rensselaer county,
   11  newly incorporated on January fourteenth, nineteen hundred ninety-eight,
   12  shall be entitled to receive the same amount of  general  purpose  local
   13  government  aid  that  it  received for such purpose pursuant to chapter
   14  fifty of the laws of two thousand one. All aid pursuant to this  section
   15  shall  be paid in the same "on or before month and day" manner as speci-
   16  fied in chapter fifty  of  the  laws  of  nineteen  hundred  ninety-six,
   17  constituting the general government budget.
   18    c.  Consolidations,  mergers, or dissolutions - entitlement to general
   19  purpose local government aid. In the  case  where  any  city,  town,  or
   20  village  consolidates,  merges or dissolves, and the resulting successor
   21  government has filed with the office of the state comptroller a  certif-
   22  icate  of any such consolidation, merger, or dissolution, such successor
   23  government shall be entitled to receive any payments of general  purpose
   24  local government aid which, pursuant to paragraph b of this subdivision,
   25  would  have  been  otherwise payable to the individual cities, towns, or
   26  villages who were party to such consolidation, merger, or dissolution in
   27  addition to the general purpose  local  government  aid  such  successor
   28  government  is entitled to receive had no such consolidation, merger, or
   29  dissolution occurred. The annual amount of general purpose local govern-
   30  ment aid any city, town, or village in which a municipality has  consol-
   31  idated,  merged,  or  dissolved shall be eligible to receive on the date
   32  such city, town, or village is consolidated, merged, or dissolved  shall
   33  continue  to  be paid for the first state fiscal year following the date
   34  of such consolidation, merger, or dissolution and payments shall  there-
   35  after  continue  to be paid for an additional four state fiscal years in
   36  reduced amounts as follows: in the second year following  consolidation,
   37  merger,  or  dissolution,  eighty  percent of such annual amount; in the
   38  third year, sixty percent; in the fourth year,  forty  percent;  in  the
   39  fifth  year, twenty percent; and thereafter such payments shall cease to
   40  be paid. In instances where only a portion of a city, town,  or  village
   41  is  party  to  a  consolidation, merger, or dissolution, general purpose
   42  local government aid payable to the resulting successor government shall
   43  include only a pro rata share of the aid otherwise due  and  payable  to
   44  such  city,  town, or village.   Such pro rata share shall be based on a
   45  ratio of the two thousand federal decennial  census  population  of  the
   46  portion  consolidated, merged, or dissolved as compared to the total two
   47  thousand federal decennial census  population  of  the  city,  town,  or
   48  village party to such consolidation, merger, or dissolution.]
   49    9. a. Notwithstanding any inconsistent provision of this section or of
   50  any  other  provision  of  law  to  the contrary, the payment of general
   51  purpose local government aid for the support of local government for the
   52  state fiscal year commencing April first, two thousand  three  shall  be
   53  paid from an appropriation made for such purposes pursuant to the gener-
   54  al  government  budget  in  a  manner  consistent with this subdivision.
   55  Subdivisions one through eight of this section shall not  be  applicable
       S. 1406                            193                           A. 2106
 
    1  to  the payment of per capita state aid for the support of local govern-
    2  ment.
    3    b.  Notwithstanding  any inconsistent provision of article five of the
    4  general construction law, in the fiscal year  of  the  state  commencing
    5  April  first,  two  thousand  three  any city having a population of one
    6  million or more shall be entitled to receive the same amount of  general
    7  purpose, local government aid that it received for such purpose pursuant
    8  to  chapter  fifty  of  the  laws  of two thousand two, constituting the
    9  public protection and general government budget, and section  fifty-four
   10  of  the  state  finance  law, as added by section twelve of chapter four
   11  hundred thirty of the laws of nineteen hundred ninety-seven, as  if  the
   12  provisions  of such section fifty-four were in full force and effect for
   13  the entire state fiscal year commencing April first, two thousand three.
   14  Except as provided in paragraph c of this subdivision, each city,  other
   15  than  any  city  having  a  population  of one million or more, town and
   16  village that was  appropriated  general  purpose  local  government  aid
   17  pursuant to chapter fifty of the laws of two thousand two shall be enti-
   18  tled to receive a total of one hundred five percent of the amount of aid
   19  that  it  would  be  entitled to receive under section fifty-four of the
   20  state finance law, as added by section twelve of  chapter  four  hundred
   21  thirty  of  the  laws  of  nineteen  hundred  ninety-seven,  as  if  the
   22  provisions of such section fifty-four were in full force and effect  for
   23  the entire state fiscal year commencing April first, two thousand three.
   24  Notwithstanding  the  provisions of this subdivision in the state fiscal
   25  year commencing April first, two thousand three,  the  village  of  East
   26  Nassau,  Rensselaer  county,  newly  incorporated on January fourteenth,
   27  nineteen hundred ninety-eight, shall be entitled  to  receive  the  same
   28  amount of general purpose local government aid that it received for such
   29  purpose  pursuant to chapter fifty of the laws of two thousand two.  All
   30  aid pursuant to this section shall be paid in the  same  "on  or  before
   31  month and day" manner as specified in chapter fifty of the laws of nine-
   32  teen hundred ninety-six, constituting the general government budget.
   33    c.  Consolidations,  mergers,  or  dissolutions-entitlement to general
   34  purpose local government aid. In the  case  where  any  city,  town,  or
   35  village  consolidates,  merges or dissolves, and the resulting successor
   36  government has filed with the office of the state comptroller a  certif-
   37  icate  of any such consolidation, merger, or dissolution, such successor
   38  government shall be entitled to receive any payments of general  purpose
   39  local government aid which, pursuant to paragraph b of this subdivision,
   40  would  have  been  otherwise payable to the individual cities, towns, or
   41  villages who were party to such consolidation, merger, or dissolution in
   42  addition to the general purpose  local  government  aid  such  successor
   43  government  is entitled to receive had no such consolidation, merger, or
   44  dissolution occurred. The annual amount of general purpose local govern-
   45  ment aid that any city, town, or village in  which  a  municipality  has
   46  consolidated,  merged,  or dissolved shall be eligible to receive on the
   47  date such city, town, or village is consolidated, merged,  or  dissolved
   48  shall  continue  to  be paid pursuant to paragraph b of this subdivision
   49  for every state fiscal year following the date  of  such  consolidation,
   50  merger,  or  dissolution.  In  instances where only a portion of a city,
   51  town, or village is party to a consolidation,  merger,  or  dissolution,
   52  general  purpose local government aid payable to the resulting successor
   53  government shall include only a pro rata share of the aid otherwise  due
   54  and payable to such city, town, or village. Such pro rata share shall be
   55  based on a ratio of the two thousand federal decennial census population
   56  of  the  portion  consolidated,  merged, or dissolved as compared to the
       S. 1406                            194                           A. 2106
 
    1  total two thousand federal decennial  census  population  of  the  city,
    2  town, or village party to such consolidation, merger, or dissolution.
    3    § 16. Section 101 of the general municipal law is REPEALED.
    4    §  17.  The  opening  paragraph  of  paragraph (e) of subdivision 4 of
    5  section 120-w of the general municipal law, as amended by chapter 552 of
    6  the laws of 1980, is amended to read as follows:
    7    It is the intent of the legislature that overall cost  should  in  all
    8  cases  be a major criterion in the selection of contractors for award of
    9  contracts pursuant to this section and that,  wherever  practical,  such
   10  contracts  which  include  construction  work should be procured through
   11  competitive bidding procedures as prescribed by  [sections  one  hundred
   12  one  and]  section  one hundred three of this chapter. It is further the
   13  intent of the legislature to acknowledge the highly complex and  innova-
   14  tive  nature  of resource recovery technology for processing mixed solid
   15  waste, the relative newness of the variety of resource recovery  systems
   16  now  available, the desirability of a single point of responsibility for
   17  the development of facilities and the economic and technical utility  of
   18  contracts  for  resource  recovery projects which include in their scope
   19  various combinations  of  design,  construction,  operation,  management
   20  and/or  maintenance  responsibilities over prolonged periods of time and
   21  that in some instances it may be beneficial to the municipality to award
   22  a contract on the basis of factors other than cost alone, including  but
   23  not  limited  to facility design, system reliability, energy efficiency,
   24  compatibility with source separation and  other  recycling  systems  and
   25  environmental   protection.   Accordingly,   and   notwithstanding   the
   26  provisions of any general, special or local law or charter,  a  contract
   27  entered  into  between  a  municipality  and any person pursuant to this
   28  section may be awarded pursuant to public  bidding  in  compliance  with
   29  [sections one hundred one and] section one hundred three of this chapter
   30  or  pursuant  to  the  following  provisions for the award of a contract
   31  based on evaluation of proposals submitted in response to a request  for
   32  proposals prepared by or for the municipality:
   33    §  18. Subdivision 7 of section 120-w of the general municipal law, as
   34  added by chapter 552 of the laws of 1980, is amended to read as follows:
   35    7. Every contract entered into between a municipality  and  a  project
   36  developer  pursuant  to the provisions of subparagraph four of paragraph
   37  (e) of subdivision four of this section, for  construction  of  a  solid
   38  waste  management-resource  recovery  building by the project developer,
   39  shall contain provisions that such building shall be constructed through
   40  construction contracts awarded through  public  competitive  bidding  in
   41  accordance  with  paragraphs  (a) through [(g)] (f) of this subdivision;
   42  that the project developer shall  furnish  a  bond  guaranteeing  prompt
   43  payment of moneys that are due to all persons furnishing labor and mate-
   44  rials  pursuant  to the requirements of such construction contracts, and
   45  that a copy of such payment bond shall be kept by the  municipality  and
   46  shall be open to public inspection; provided, however, that the require-
   47  ments  of  this  subdivision  shall  not  apply  when  the  cost of such
   48  construction is less than five thousand dollars.
   49    (a)  The  project  developer  shall  advertise  for  bids   for   such
   50  construction  contracts  in a daily newspaper having general circulation
   51  in the county in  which  such  public  solid  waste  management-resource
   52  recovery  building  is to be located. Such advertisement shall contain a
   53  statement of the time when and place where all bids received pursuant to
   54  such notice will be publicly opened and read. An employee of the munici-
   55  pality shall be designated to open the bids at the time and place speci-
   56  fied in the notice. All bids received shall be publicly opened and  read
       S. 1406                            195                           A. 2106
 
    1  at  the  time  and  place  so specified. At least five days shall elapse
    2  between the publication of such advertisement and date on which the bids
    3  are opened.
    4    (b)  [When  the entire cost of constructing such building shall exceed
    5  fifty thousand dollars, the project  developer  shall  prepare  separate
    6  specifications  for  the  following  subdivisions of such work, so as to
    7  permit separate and independent bidding upon each subdivision:
    8    (i) plumbing and gas fittings;
    9    (ii) steam heating, hot water heating, ventilating and air  condition-
   10  ing apparatus; and
   11    (iii) electric wiring and standard illuminating fixtures.
   12    (c) After public competitive bidding the project developer shall award
   13  one  or  more  separate  contracts for each of the above subdivisions of
   14  such work, whenever separate specifications  are  required  pursuant  to
   15  paragraph  (b)  of  this  subdivision, and one or more contracts for the
   16  remainder of such work. The project developer may award  such  contracts
   17  at  different times.] Contracts awarded pursuant to this paragraph shall
   18  be awarded by the  project  developer  to  the  lowest  responsible  and
   19  responsive  bidder  and  shall be contracts of the project developer and
   20  not of the municipality which shall have no obligation  or  liabilities,
   21  whatsoever,  thereunder.  The project developer shall have the responsi-
   22  bility for  the  supervision,  coordination,  and  termination  of  such
   23  contracts,  unless  otherwise specified in contractual terms between the
   24  project developer and the municipality.
   25    [(d)] (c) In determining whether a prospective contractor is responsi-
   26  ble and responsive, the project developer may require  that  prospective
   27  contractors:
   28    (i)  have  adequate  financial resources or the ability to obtain such
   29  resources;
   30    (ii) be able to comply with  the  required  or  proposed  delivery  or
   31  performance schedule;
   32    (iii) have a satisfactory record of performance;
   33    (iv)   have   the   necessary  organization,  experience,  operational
   34  controls, and technical skills, or the ability to obtain them;
   35    (v) have the necessary production, construction and  technical  equip-
   36  ment and facilities, or the ability to obtain them;
   37    (vi)  be  eligible to receive an award under applicable laws and regu-
   38  lations and be otherwise qualified.
   39    [(e)] (d) The project developer may reject any bid of a  bidder  which
   40  the  project  developer determines to be nonresponsible or nonresponsive
   41  to the advertisement for bids.
   42    [(f)] (e) The project developer may, in  its  discretion,  reject  all
   43  bids,  and may revise bid specifications and may readvertise for bids as
   44  provided herein.
   45    [(g)] (f) Only as used in this subdivision:
   46    (i) "project developer" means any private corporation, partnership, or
   47  individual or combination thereof which  has  submitted  a  proposal  in
   48  response  to a request for proposals issued pursuant to subparagraph two
   49  of paragraph (e) of subdivision four of this section;
   50    (ii) "construction" shall include  reconstruction,  rehabilitation  or
   51  improvement;
   52    (iii)  "solid  waste  management-resource  recovery  building" means a
   53  building of a solid waste management-resource  recovery  facility.  Such
   54  building  shall  not  include  the system to be used for the purposes of
   55  receiving, processing, handling or storing solid waste, the products and
   56  by-products derived therefrom, or materials used in such  processing  or
       S. 1406                            196                           A. 2106
 
    1  handling  and  any  equipment or property involving proprietary or trade
    2  secrets.
    3    §  19.  Section 99-q of the general municipal law, as added by chapter
    4  825 of the laws of 1987, is amended to read as follows:
    5    § 99-q. Facilities for the unified court system.  Notwithstanding  the
    6  provisions of any general, special or local law, charter or ordinance to
    7  the  contrary, a municipality which is a political subdivision specified
    8  in paragraph (a) of subdivision two of section thirty-nine of the  judi-
    9  ciary law may upon the approval of its governing board:
   10    1.  Sell,  convey,  lease, exchange or otherwise make available to any
   11  person, firm, association, corporation or  agency,  including  a  public
   12  body,  the  title  to  or  an  interest in real property, and enter into
   13  contracts therefor, for the design, construction, reconstruction,  reha-
   14  bilitation  or  improvement of facilities provided or to be provided for
   15  the purposes of the unified court system of the state; and
   16    2. Acquire by purchase, lease, sublease or other agreement the facili-
   17  ties provided or to be provided for the purposes of  the  unified  court
   18  system of the state.
   19    All  contracts entered into pursuant to the provisions of this section
   20  shall be subject to the provisions of [sections  one  hundred  one  and]
   21  section one hundred three of this chapter.
   22    § 20. Section 135 of the state finance law is REPEALED.
   23    §  21.  Subdivision  1  of  section  137  of the state finance law, as
   24  amended by chapter 83 of the  laws  of  1995,  is  amended  to  read  as
   25  follows:
   26    1. In addition to other bond or bonds, if any, required by law for the
   27  completion  of  a  work specified in a contract for the prosecution of a
   28  public improvement for the state of New York a municipal corporation,  a
   29  public benefit corporation or a commission appointed pursuant to law, or
   30  in the absence of any such requirement, the comptroller may or the other
   31  appropriate  official, respectively, shall nevertheless require prior to
   32  the approval of any such contract a bond guaranteeing prompt payment  of
   33  moneys  due to all persons furnishing labor or materials to the contrac-
   34  tor or his subcontractors in the prosecution of the work provided for in
   35  such contract. Provided, however, that all performance bonds and payment
   36  bonds may, at the discretion of the head of  the  state  agency,  public
   37  benefit  corporation or commission, or his or her designee, be dispensed
   38  with for the completion of a work specified in a contract for the prose-
   39  cution of a public improvement for the state of New York for which  bids
   40  are  solicited where the aggregate amount of the contract is under fifty
   41  thousand dollars [and  provided  further,  that  in  a  case  where  the
   42  contract  is  not subject to the multiple contract award requirements of
   43  section one hundred thirty-five of this article, such  requirements  may
   44  be  dispensed  with  where  the head of the state agency, public benefit
   45  corporation or commission finds it to be  in  the  public  interest  and
   46  where  the  aggregate amount of the contract awarded or to be awarded is
   47  less than two hundred thousand dollars]. Provided  further,  that  in  a
   48  case  where  a performance or payment bond is dispensed with, twenty per
   49  centum may be retained from each progress payment or estimate until  the
   50  entire  contract work has been completed and accepted, at which time the
   51  head of the state  agency,  public  benefit  corporation  or  commission
   52  shall,  pending  the  payment  of  the final estimate, pay not to exceed
   53  seventy-five per centum of the amount of the retained percentage.
   54    § 22. Subdivision 4 of section 139-f of  the  state  finance  law,  as
   55  amended  by  chapter  83  of  the  laws  of  1995, is amended to read as
   56  follows:
       S. 1406                            197                           A. 2106
 
    1    4. Notwithstanding any other provision of this section or  other  law,
    2  requirements  for the furnishing of a performance bond or a payment bond
    3  may be dispensed with at the discretion of the head of the state  agency
    4  or  corporation,  or  his  or  her designee, where the public owner is a
    5  state  agency  or  corporation  described  in  subdivision one-a of this
    6  section and the aggregate amount  of  the  contract  awarded  or  to  be
    7  awarded  is  under  fifty  thousand  dollars  [and,  in a case where the
    8  contract is not subject to the multiple contract award  requirements  of
    9  section  one  hundred thirty-five of this article, such requirements may
   10  be dispensed with where the head of  the  state  agency  or  corporation
   11  finds  it to be in the public interest and where the aggregate amount of
   12  the contract awarded or to be awarded  is  under  two  hundred  thousand
   13  dollars].  Provided  further,  that  in  a  case  where a performance or
   14  payment bond is dispensed with, twenty per centum may be  retained  from
   15  each  progress  payment  or  estimate until the entire contract work has
   16  been completed and accepted, at which time the head of the state  agency
   17  or corporation shall, pending the payment of the final estimate, pay not
   18  to exceed seventy-five per centum of the amount of the retained percent-
   19  age.
   20    § 23. Section 151-a of the public housing law is REPEALED.
   21    §  24.  Paragraph d of subdivision 1 of section 372-a of the education
   22  law, as added by chapter 624 of the laws of 1999, is amended to read  as
   23  follows:
   24    d.  Any  contracts or leases entered into by the trustees of the state
   25  university of New York pursuant to this section shall require the lessee
   26  or contracting not-for-profit corporation to comply  with  the  require-
   27  ments  of  article fifteen-A of the executive law. Any contract or lease
   28  for construction, rehabilitation, or  other  improvement  authorized  by
   29  this  section  entered  into by the trustees shall require the lessee or
   30  contractor and/or subcontractor  to  comply  with  the  requirements  of
   31  section  two hundred twenty, two hundred thirty, two hundred thirty-one,
   32  two hundred forty and two hundred forty-one  of  the  labor  law,  where
   33  applicable,  as  well  as  [sections  one  hundred  one and] section one
   34  hundred three of the general municipal law, where applicable;
   35    § 25. The opening paragraph of subdivision 8 of  section  376  of  the
   36  education law, as amended by chapter 877 of the laws of 1990, is amended
   37  to read as follows:
   38    All  contracts  which  are  to be awarded pursuant to this subdivision
   39  shall be awarded by public letting  in  accordance  with  the  following
   40  provisions,  notwithstanding  any  contrary  provision  of  section [one
   41  hundred thirty-five,] one hundred thirty-six, one hundred thirty-nine or
   42  one hundred forty of the state  finance  law,  provided,  however,  that
   43  where  the estimated expense of any contract which may be awarded pursu-
   44  ant to this subdivision is less than fifty thousand dollars, a  perform-
   45  ance  bond  and a bond for the payment of labor and material may, in the
   46  discretion of the  fund,  not  be  required,  and  except  that  in  the
   47  discretion of the fund, a contract may be entered into for such purposes
   48  without  public letting where the estimated expense thereof is less than
   49  twenty thousand dollars, or where in the judgment of the fund  an  emer-
   50  gency  condition  exists  as  a result of damage to an existing academic
   51  building, dormitory or other facility which has been caused by an act of
   52  God, fire or other casualty, or  any  other  unanticipated,  sudden  and
   53  unexpected  occurrence,  that has resulted in damage to or a malfunction
   54  in an existing  academic  building,  dormitory  or  other  facility  and
   55  involves  a  pressing  necessity for immediate repair, reconstruction or
   56  maintenance in order to permit the safe continuation of the use or func-
       S. 1406                            198                           A. 2106
 
    1  tion of such facility, or to protect the facility or the life, health or
    2  safety of any person, and the nature of the work is  such  that  in  the
    3  judgment  of  the  fund  it  would be impractical and against the public
    4  interest to have public letting; provided, however, that the fund, prior
    5  to awarding a contract hereunder because of an emergency condition noti-
    6  fy the comptroller of its intent to award such a contract:
    7    §  26.  Subdivision 11 of section 407-a of the education law, as added
    8  by chapter 737 of the laws of 1988, is amended to read as follows:
    9    11. Any contract undertaken or financed by the dormitory authority for
   10  any construction, reconstruction, rehabilitation or improvement for  any
   11  special  act  school  district  shall  comply  with  the  provisions  of
   12  [sections one hundred one and] section one hundred three of the  general
   13  municipal law.
   14    §  27.  Subdivisions  1  and 2 of section 458 of the education law are
   15  REPEALED.
   16    § 28. Subdivisions 1 and 2 of section 482 of  the  education  law  are
   17  REPEALED.
   18    §  29. Subdivision 3 of section 1726 of the education law, as added by
   19  chapter 198 of the laws of 1973, is amended to read as follows:
   20    3. Such agreements shall be subject to the bidding requirements of the
   21  general municipal law[,  except  that  the  provisions  of  section  one
   22  hundred  one  of  the  general municipal law shall not apply to lease or
   23  lease-purchase of pre-manufactured items  delivered  to  the  site,  but
   24  shall apply to installation and other work to be performed on the site].
   25    §  30.  Subdivision  (b)  of  section  6281  of  the  education law is
   26  REPEALED.
   27    § 31. Subparagraph 4 of  paragraph  c  of  subdivision  2  of  section
   28  27-0707  of the environmental conservation law, as amended by chapter 70
   29  of the laws of 1988, is amended to read as follows:
   30    (4) the applicant has received or will receive the written opinion  of
   31  counsel to each [muncipality] municipality or public authority which has
   32  entered  into  a  contract,  lease or rental agreement with the proposed
   33  facility that such contract, lease or rental agreement is in  compliance
   34  with  the  applicable  requirements  of  sections [one hundred one,] one
   35  hundred three and one hundred twenty-w of the general municipal law.
   36    § 32. Subdivision 2 of section 38 of the highway law,  as  amended  by
   37  chapter 83 of the laws of 1995, is amended to read as follows:
   38    2.  Proposals.  Each  proposal shall specify the correct gross sum for
   39  which the work will be performed and shall also include the amount to be
   40  charged for each item specified on  the  proposal  estimate  sheet.  The
   41  commissioner  of  transportation may prescribe and furnish forms for the
   42  submission of such proposals and may prescribe the manner of  submitting
   43  the  same  which  shall  not be inconsistent herewith. Accompanying each
   44  proposal there shall be either a certified check or bank cashier's check
   45  for the amount of the bid deposit, to be fixed by  the  commissioner  of
   46  transportation  and specified in the advertisement for proposals or such
   47  other security from the bidder as may be acceptable to the  commissioner
   48  of transportation.  The checks of the two low bidders shall be deposited
   49  by  the  commissioner  of transportation in a special account. Provided,
   50  however, that if prior to or upon receipt of said checks by the  commis-
   51  sioner  of  transportation  a  bidder  who is one of the two low bidders
   52  shall have duly filed a bond as hereinafter provided the commissioner of
   53  transportation shall forthwith return to said bidder his aforesaid check
   54  without depositing the same.  If  alternate  proposals  are  taken,  the
   55  checks of the two low bidders of all alternate proposals shall be depos-
   56  ited.  All  checks  other  than  those  of  the two low bidders shall be
       S. 1406                            199                           A. 2106
 
    1  returned promptly by the commissioner of transportation. Notwithstanding
    2  the provisions of any general or special law, the money  represented  by
    3  the checks of the two low bidders shall be paid from the special account
    4  when  the contractor has duly executed and delivered to the commissioner
    5  of transportation the contract and the bond or bonds, if  any,  required
    6  by  law  for the performance of the work of a public improvement for the
    7  state of New York, or upon the rejection of all bids. The low bidder, in
    8  the discretion of the commissioner of transportation, and the second low
    9  bidder, as a matter of right, may at any time after the opening  of  the
   10  respective  proposals,  file  with  the commissioner of transportation a
   11  bond, the principal amount of which shall at least equal the  amount  of
   12  the  respective bidder's check, theretofore deposited with his proposal,
   13  in the form prescribed  by  the  commissioner  of  transportation,  with
   14  sufficient  sureties,  to be approved by the commissioner of transporta-
   15  tion, conditioned that the said  bidder  will  execute  a  contract  and
   16  furnish  such  performance  or  other bonds as may be required by law in
   17  accordance with the terms of the bidder's said  proposal.  If  a  bidder
   18  complies  with  the aforesaid provision, the commissioner of transporta-
   19  tion shall forthwith return the money represented by the check  of  such
   20  bidder.  In  case the bidder to whom the contract shall be awarded shall
   21  fail to execute such contract and bond if required, the  moneys  repres-
   22  ented by such check shall be regarded as liquidated damages and shall be
   23  forfeited  to  the  state  and shall be deposited by the commissioner of
   24  transportation with the commissioner of  taxation  and  finance  to  the
   25  credit  of the general fund. Provided, however, that although a perform-
   26  ance bond or a payment bond or both may be accepted from a bidder by the
   27  commissioner of transportation, a requirement to furnish  such  bond  or
   28  bonds  may  be  dispensed  with  where  the  aggregate gross sums of the
   29  contracts to be awarded for the project is under fifty thousand  dollars
   30  and  provided further, [that in a case where a single contract is issued
   31  for a project which is  not  subject  to  the  multiple  contract  award
   32  requirements  of  section  one  hundred thirty-five of the state finance
   33  law,] such requirements may be dispensed  with  where  the  commissioner
   34  finds  it to be in the public interest and where the aggregate amount of
   35  the contract awarded or to be awarded is less  than  two  hundred  fifty
   36  thousand  dollars. The gross sums indicated on the proposals when opened
   37  shall be publicly read. The commissioner shall keep  the  bids  for  the
   38  several  items  of  the  proposals  confidential  until  an award of the
   39  contract is made, after which the proposals  shall  be  subject  at  all
   40  reasonable times to public inspection.
   41    §  33.  Subdivision  2  of section 816-b of the labor law, as added by
   42  chapter 571 of the laws of 2001, is amended to read as follows:
   43    2. Notwithstanding any other provision of this article, of section one
   44  hundred three of the general municipal  law,  [of  section  one  hundred
   45  thirty-five  of the state finance law,] of section one hundred fifty-one
   46  of the public housing law, or of any other general, special or local law
   47  or administrative code, in entering into any  construction  contract,  a
   48  governmental  entity  which  is to be a direct or indirect party to such
   49  contract may require that any contractors and subcontractors have, prior
   50  to entering into such contract,  apprenticeship  agreements  appropriate
   51  for  the  type  and scope of work to be performed, that have been regis-
   52  tered with, and approved by, the commissioner pursuant to  the  require-
   53  ments  found  in  this article. Whenever utilizing this requirement, the
   54  governmental entity may, in  addition  to  whatever  considerations  are
   55  required  by  law,  consider the degree to which career opportunities in
       S. 1406                            200                           A. 2106
 
    1  apprenticeship training programs approved by  the  commissioner  may  be
    2  provided.
    3    §  34.  Subdivision 2 of section 1045-i of the public authorities law,
    4  as added by chapter 513 of the laws of  1984,  is  amended  to  read  as
    5  follows:
    6    2.  Any  such  agreements  (i) shall describe in sufficient detail for
    7  reasonable identification the particular water project to be financed in
    8  whole or in part by the authority, (ii) shall describe the plan for  the
    9  financing of the cost of the construction of such water project, includ-
   10  ing the amount, if any, to be provided by the water board and the source
   11  or  sources  thereof,  (iii)  shall set forth the method by which and by
   12  whom and the terms and conditions upon  which  moneys  provided  by  the
   13  authority shall be disbursed, (iv) may require, in the discretion of the
   14  authority, the payment to the authority of the proceeds of any state and
   15  federal  grants  available to the water board, (v) shall provide for the
   16  establishment of user fees, rates,  rents  and  other  charges  and  the
   17  charging  and  collection  thereof by the water board for the use of, or
   18  services furnished, rendered or made available by such system such as to
   19  provide that such board receive revenues at least  sufficient,  together
   20  with  other  revenues  of the board, if any, to meet the requirements of
   21  subdivision one of section one  thousand  forty-five-j  of  this  title,
   22  provided  that  revenues  received by such board shall be deposited in a
   23  special fund established pursuant to this title and  disbursed  to,  and
   24  upon  certification of, the authority, (vi) may provide for the transfer
   25  by the city to the water board pursuant to section one  thousand  forty-
   26  five-h  of  this  title  of  ownership  of  the sewerage system or water
   27  system, or both, as the case may be, of which such project will  form  a
   28  part  by  the  city,  (vii)  shall  provide  for  the  construction  and
   29  completion of such water project by the  city  and  for  the  operation,
   30  maintenance  and  repair  thereof as an integrated part of the system of
   31  which such water project forms a part, subject to such terms and  condi-
   32  tions,  not  inconsistent  with  this  title, which may be in the public
   33  interest and necessary or desirable properly and  adequately  to  secure
   34  the  holders of bonds of the authority, provided, however, all contracts
   35  for public work and all purchase contracts shall be awarded by the  city
   36  as  provided by law for the award of such contracts by the city and that
   37  all contracts for construction shall  be  let  in  accordance  with  the
   38  provisions  of state law pertaining to prevailing wages, labor standards
   39  and working hours[. When the entire cost of constructing a  building  as
   40  part  of any water project shall exceed fifty thousand dollars, the city
   41  shall prepare separate specifications for the following  three  subdivi-
   42  sions  of  the  work  to be performed: (a) plumbing and gas fitting; (b)
   43  steam heating, hot water heating, ventilating and air conditioning appa-
   44  ratus; and (c) electric  wiring  and  standard  illuminating  fixtures],
   45  (viii)  shall  provide  for  the  discontinuance or disconnection of the
   46  supply of water or the provision of sewerage service, or  both,  as  the
   47  case  may  be,  for  non-payment  of fees, rates, rents or other charges
   48  therefor imposed by the water board,  provided  such  discontinuance  or
   49  disconnection  of  any  supply  of  water  or  the provision of sewerage
   50  service, or both, as the case may be, shall not be carried out except in
   51  the manner and upon the notice as is required  of  a  waterworks  corpo-
   52  ration  pursuant to subdivisions three-a, three-b and three-c of section
   53  eighty-nine-b and section one hundred sixteen of the public service law,
   54  and (ix) in the discretion of the authority, require reports  concerning
   55  the project from the water board to the authority and the city.
       S. 1406                            201                           A. 2106
 
    1    §  35.  Subdivision 2 of section 1048-i of the public authorities law,
    2  as added by chapter 796 of the laws of  1985,  is  amended  to  read  as
    3  follows:
    4    2.  Any  such  agreements  (i) shall describe in sufficient detail for
    5  reasonable identification the particular water project to be financed in
    6  whole or in part by the authority, (ii) shall describe the plan for  the
    7  financing of the cost of the construction of such water project, includ-
    8  ing the amount, if any, to be provided by the water board and the source
    9  or  sources  thereof,  (iii)  shall set forth the method by which and by
   10  whom and the terms and conditions upon  which  moneys  provided  by  the
   11  authority shall be disbursed, (iv) may require, in the discretion of the
   12  authority, the payment to the authority of the proceeds of any state and
   13  federal  grants  available to the water board, (v) shall provide for the
   14  establishment of user fees, rates,  rents  and  other  charges  and  the
   15  charging  and  collection  thereof by the water board for the use of, or
   16  services furnished, rendered or made available by such system such as to
   17  provide that such board receive revenues at least  sufficient,  together
   18  with  other  revenues  of the board, if any, to meet the requirements of
   19  subdivision one of section one thousand  forty-eight-j  of  this  title,
   20  provided  that  revenues  received by such board shall be deposited in a
   21  special fund established pursuant to this title and  disbursed  to,  and
   22  upon  certification of, the authority, (vi) may provide for the transfer
   23  by the city to the water board pursuant to section one  thousand  forty-
   24  eight-h  of  this  title  of ownership of the water system of which such
   25  project will form a part, (vii) shall provide for the  construction  and
   26  completion  of  such  water  project  by the city and for the operation,
   27  maintenance and repair thereof as an integrated part of  the  system  of
   28  which  such water project forms a part, subject to such terms and condi-
   29  tions, not inconsistent with this title, which  may  be  in  the  public
   30  interest  and  necessary  or desirable properly and adequately to secure
   31  the holders of bonds of the authority, provided, however, all  contracts
   32  for  public work and all purchase contracts shall be awarded by the city
   33  as provided by law for the award of such contracts by the city and  that
   34  all  contracts  for  construction  shall  be  let in accordance with the
   35  provisions of state law pertaining to prevailing wages, labor  standards
   36  and  working  hours[. When the entire cost of constructing a building as
   37  part of any water project shall exceed fifty thousand dollars, the  city
   38  shall  prepare  separate specifications for the following three subdivi-
   39  sions of the work to be performed: (a) plumbing  and  gas  fitting;  (b)
   40  steam heating, hot water heating, ventilating and air conditioning appa-
   41  ratus;  and  (c)  electric  wiring  and standard illuminating fixtures],
   42  (viii) shall provide for the  discontinuance  or  disconnection  of  the
   43  supply  of  water for non-payment of fees, rates, rents or other charges
   44  therefor imposed by the water board,  provided  such  discontinuance  or
   45  disconnection  of any supply of water shall not be carried out except in
   46  the manner and upon the notice as is required  of  a  waterworks  corpo-
   47  ration  pursuant to subdivisions three-a, three-b and three-c of section
   48  eighty-nine-b and section one hundred sixteen of the public service law,
   49  and (ix) in the discretion of the authority, require reports  concerning
   50  the project from the water board to the authority and the city.
   51    §  36. Section 1137 of the public authorities law, as added by chapter
   52  595 of the laws of 1991, is amended to read as follows:
   53    § 1137. Construction and purchase contracts. The authority  shall  let
   54  contracts for construction or purchase of supplies, materials, or equip-
   55  ment  pursuant  to  [sections  one  hundred one and] section one hundred
   56  three of the general municipal law. Nothing in  this  section  shall  be
       S. 1406                            202                           A. 2106
 
    1  construed  to  limit  the  power of the authority to do any construction
    2  directly by the officers, agents and employees of the authority.
    3    §  37. Section 1147-u of the public authorities law, as added by chap-
    4  ter 691 of the laws of 1995, is amended to read as follows:
    5    § 1147-u. Construction and purchase contracts. The authority shall let
    6  contracts for construction or purchase of supplies, materials, or equip-
    7  ment pursuant to [sections one hundred  one  and]  section  one  hundred
    8  three  of  the general municipal law and shall be let in accordance with
    9  the provisions of state law pertaining to prevailing wages, labor stand-
   10  ards, and working hours. Nothing in this section shall be  construed  to
   11  limit  the power of the authority to do any construction directly by the
   12  officers, agents and employees of the authority.
   13    § 38. Section 1174-q of the public authorities law, as added by  chap-
   14  ter 491 of the laws of 1991, is amended to read as follows:
   15    § 1174-q. Construction and purchase contracts. The authority shall let
   16  contracts for construction or purchase of supplies, materials, or equip-
   17  ment  pursuant  to  [sections  one  hundred one and] section one hundred
   18  three of the general municipal law. Nothing in  this  section  shall  be
   19  construed  to  limit  the  power of the authority to do any construction
   20  directly by the officers, agents and employees of the  authority  or  to
   21  contract with a public utility, for a term not to exceed five years, for
   22  the  operation  and  maintenance  of a water supply system acquired from
   23  said public utility.
   24    § 39. Section 1198-q of the public authorities law, as added by  chap-
   25  ter 868 of the laws of 1990, is amended to read as follows:
   26    § 1198-q. Construction and purchase contracts. The authority shall let
   27  contracts for construction or purchase of supplies, materials, or equip-
   28  ment  pursuant  to  [sections  one  hundred one and] section one hundred
   29  three of the general municipal law. Nothing in  this  section  shall  be
   30  construed  to  limit  the  power of the authority to do any construction
   31  directly by the officers, agents and employees of the  authority  or  to
   32  contract with a public utility, for a term not to exceed five years, for
   33  the  operation  and  maintenance  of a water supply system acquired from
   34  said public utility.
   35    § 40. Section 1199-qqq of the public  authorities  law,  as  added  by
   36  chapter 678 of the laws of 1990, is amended to read as follows:
   37    §  1199-qqq.  Construction and purchase contracts. The authority shall
   38  let contracts for construction or purchase of  supplies,  materials,  or
   39  equipment pursuant to [sections one hundred one and] section one hundred
   40  three  of  the  general  municipal law. Nothing in this section shall be
   41  construed to limit the power of the authority  to  do  any  construction
   42  directly by the officers, agents and employees of the authority.
   43    §  41.  Section  1199-qqqq  of the public authorities law, as added by
   44  chapter 195 of the laws of 1995, is amended to read as follows:
   45    § 1199-qqqq. Construction and purchase contracts. The authority  shall
   46  let  contracts  for  construction or purchase of supplies, materials, or
   47  equipment pursuant to [sections one hundred one and] section one hundred
   48  three of the general municipal law and shall be let in  accordance  with
   49  the provisions of state law pertaining to prevailing wages, labor stand-
   50  ards,  and  working hours. Nothing in this section shall be construed to
   51  limit the power of the authority to do any construction directly by  the
   52  officers, agents and employees of the authority.
   53    §  42. Section 1226-t of the public authorities law, as added by chap-
   54  ter 647 of the laws of 1994, is amended to read as follows:
   55    § 1226-t. Contracts. All contracts for construction shall  be  let  by
   56  the  authority  in [conformity with the applicable provisions of section
       S. 1406                            203                           A. 2106
 
    1  one hundred thirty-five of the state finance law and shall  be  let  in]
    2  accordance  with  the  provisions  of state law pertaining to prevailing
    3  wages, labor standards and working hours.
    4    The authority may, in its discretion, assign contracts for supervision
    5  and  coordination  to  the successful bidder for any subdivision of work
    6  for which the authority receives bids. The authority shall not award any
    7  construction contract except to the lowest bidder who, in  its  opinion,
    8  is  qualified  to  perform  the work required and who is responsible and
    9  reliable. The authority may, however, reject any or all  bids  or  waive
   10  any informality in a bid if it believes that the public interest will be
   11  promoted  thereby. The authority may reject any bid if, in its judgment,
   12  the business and technical  organization,  plant,  resources,  financial
   13  standing,  or  experience of the bidder justifies such rejection in view
   14  of the work to be performed.
   15    § 43. Section 1230-u of the public authorities law, as added by  chap-
   16  ter 275 of the laws of 2002, is amended to read as follows:
   17    §  1230-u.  Contracts.  All  contracts for construction or purchase of
   18  supplies, materials or equipment shall be let by the water board,  shall
   19  be  made  in  conformity  with  the applicable provisions of section one
   20  hundred three of the general municipal  law  [and  section  one  hundred
   21  thirty-five  of  the  state  finance  law].  For the purposes of article
   22  fifteen-A of the executive law only, the authority and the  water  board
   23  shall  each  be deemed a state agency as that term is used in such arti-
   24  cle, and its contracts for procurement, design,  construction,  services
   25  and materials shall be deemed state contracts within the meaning of that
   26  term  as  set forth in such article. All construction contracts shall be
   27  let in accordance  with  the  provisions  of  state  law  pertaining  to
   28  prevailing  wages,  labor  standards  and working hours. The water board
   29  may, in its discretion, assign contracts  for  supervision  and  coordi-
   30  nation  to  the  successful bidder for any subdivision of work for which
   31  the water board receives bids. The  water  board  shall  not  award  any
   32  construction  contract  except to the lowest bidder who, in its opinion,
   33  is qualified to perform the work required and  who  is  responsible  and
   34  reliable.  The water board may, however, reject any or all bids or waive
   35  any informality in a bid if it believes that the public interest will be
   36  promoted thereby. The water board may reject any bid if,  in  its  judg-
   37  ment,  the business and technical organization, plant, resources, finan-
   38  cial standing, or experience of the bidder justifies such  rejection  in
   39  view  of  the  work  to  be  performed.  Nothing  in this title shall be
   40  construed to limit or diminish the power of the water board  to  do  any
   41  construction  directly by the officers, employees or agents of the water
   42  board.
   43    § 44. Subdivision 1 of section 1287 of the public authorities law,  as
   44  amended  by  chapter  552  of  the  laws  of 1980, is amended to read as
   45  follows:
   46    1. [Construction contracts other than for resource recovery facilities
   47  let by the corporation  shall  be  in  conformity  with  the  applicable
   48  provisions  of section one hundred thirty-five of the state finance law,
   49  but the corporation in its discretion  may  assign  such  contracts  for
   50  supervision  and  coordination to the successful bidder for any subdivi-
   51  sion of work for which the corporation  receives  bids.]  Contracts  for
   52  resource  recovery  facilities  may be awarded by the corporation in the
   53  same manner as by a municipality pursuant to section one  hundred  twen-
   54  ty-w of the general municipal law.
       S. 1406                            204                           A. 2106
 
    1    §  45.  Paragraph  (f) of subdivision 13 of section 1678 of the public
    2  authorities law, as added by chapter 825 of the laws of 1987, is amended
    3  to read as follows:
    4    (f)  To  sell,  convey, lease, sublease or otherwise transfer any real
    5  property or interest therein held by the authority to any person,  firm,
    6  association,  corporation  or  agency,  including a public body, for the
    7  purpose of constructing or otherwise providing thereon a combined  occu-
    8  pancy  structure, provided that, simultaneously therewith, the authority
    9  enters into an agreement for the reconveyance, purchase, lease, sublease
   10  or other acquisition of the court facilities to  be  contained  in  such
   11  combined occupancy structures.
   12    Any contract undertaken or financed by the dormitory authority for any
   13  construction, reconstruction, rehabilitation or improvement of any court
   14  facilities  or  combined  occupancy  structures  shall  comply  with the
   15  provisions of [sections one hundred one and] section one  hundred  three
   16  of the general municipal law.
   17    §  46.  Paragraph  a  of  subdivision  2 of section 1680 of the public
   18  authorities law, as amended by chapter 563 of  the  laws  of  1990,  the
   19  second  undesignated  paragraph as amended by chapter 264 of the laws of
   20  1995, is amended to read as follows:
   21    a. [The dormitory authority is hereby authorized  and  empowered  upon
   22  application of the educational institution concerned to acquire, design,
   23  construct,  reconstruct,  rehabilitate and improve, or otherwise provide
   24  and furnish and equip  dormitories  and  attendant  facilities  for  any
   25  educational  institution,  provided  that  any  contract  undertaken  or
   26  financed  by  the  dormitory  authority  for  any  construction,  recon-
   27  struction,  rehabilitation  or  improvement of any building or structure
   28  commenced after September first, nineteen hundred seventy-four  for  the
   29  Gananda  school  district  or  the Gananda educational facilities corpo-
   30  ration, or any agency, board or  commission  therein,  or  any  official
   31  thereof,  shall comply with the provisions of section one hundred one of
   32  the general municipal law and the specifications for such  contract  may
   33  provide  for assignment of responsibility for coordination of any of the
   34  contracts for such work to a single responsible  and  qualified  person,
   35  firm   or   corporation;  provided,  however,  that  all  contracts  for
   36  construction of buildings on behalf of Queens Hospital Center  shall  be
   37  in  conformity  with  the  provisions  of section one hundred one of the
   38  general municipal law; provided that any contracts for the construction,
   39  reconstruction, rehabilitation or improvement of any public work project
   40  undertaken by the dormitory authority of any facility for the  aged  for
   41  any  political subdivision of the state or any district therein or agen-
   42  cy, department, board or commission thereof, or  any  official  thereof,
   43  shall  comply  with the provisions of section one hundred thirty-five of
   44  the state finance law; and provided further that any contract undertaken
   45  or financed by the dormitory  authority  for  any  construction,  recon-
   46  struction, rehabilitation or improvement of any building commenced after
   47  January first, nineteen hundred eighty-nine for the department of health
   48  shall  comply  with the provisions of section one hundred thirty-five of
   49  the state finance law.]
   50    Each educational  institution  defined  in  subdivision  one  of  this
   51  section,  except  the  department  of  health  of the state of New York,
   52  shall, when authorized by  an  appropriate  resolution  adopted  by  its
   53  governing  board or, when permitted, adopted by an appropriate committee
   54  of such governing board, have power:  (i)  to  convey  or  cause  to  be
   55  conveyed  to  the  authority  real  property  or rights in real property
   56  required in connection with the construction and financing of a dormito-
       S. 1406                            205                           A. 2106
 
    1  ry by the authority for such educational institution; or (ii)  to  enter
    2  into  agreements or leases or both with the dormitory authority pursuant
    3  to subdivision sixteen of section sixteen hundred seventy-eight of  this
    4  chapter and to paragraph e of this subdivision, or both, or, in the case
    5  of  the  department  of  health of the state of New York, providing that
    6  legislation or appropriations  which  specifies  the  facilities  to  be
    7  acquired,  constructed, reconstructed, rehabilitated or improved for the
    8  department of health of the state of New York and  the  total  estimated
    9  costs for each such facility, not to exceed four hundred [seventy three]
   10  seventy-three  million  five  hundred thousand dollars in the aggregate,
   11  shall have been approved by the legislature, the commissioner of  health
   12  shall have power: (i) to convey or cause to be conveyed to the authority
   13  real property or rights in real property required in connection with the
   14  construction  and  financing  of  a  dormitory by the authority for such
   15  educational institution; or (ii) to enter into agreements or  leases  or
   16  both  with  the  dormitory  authority pursuant to subdivision sixteen of
   17  section sixteen hundred seventy-eight of this chapter and to paragraph e
   18  of this subdivision or both. The educational institution for which  such
   19  dormitory  and  attendant  facility  is  intended  to  be provided shall
   20  approve the plans and specifications and location of such dormitory  and
   21  attendant  facility.  The  dormitory authority shall have the same power
   22  and authority in respect to such dormitories  and  attendant  facilities
   23  provided  pursuant  to  this  subdivision  that it has relative to other
   24  dormitories.
   25    § 47. Paragraph f of subdivision 27 of  section  1680  of  the  public
   26  authorities  law,  as  added  by  chapter  202  of  the laws of 1990, is
   27  REPEALED.
   28    § 48. Paragraph a of subdivision 1  of  section  1734  of  the  public
   29  authorities law, as added by chapter 738 of the laws of 1988, is amended
   30  to read as follows:
   31    a.  All  contracts  for the construction, reconstruction, improvement,
   32  rehabilitation, maintenance, repair, furnishing, equipping of or  other-
   33  wise  providing  for  educational  facilities  for the city board may be
   34  awarded in accordance with the provisions of this section, notwithstand-
   35  ing the provisions of section eight of the public buildings law, section
   36  one hundred three of the general municipal  law,  [section  one  hundred
   37  thirty-five  of  the  state  finance law,] section seven of the New York
   38  state financial emergency act for the city of New York or of  any  other
   39  provision  of  general,  special or local law, charter or administrative
   40  code.
   41    § 49. Paragraph b of subdivision 1  of  section  1734  of  the  public
   42  authorities law is REPEALED.
   43    §  50. Section 1735 of the public authorities law, as added by chapter
   44  738 of the laws of 1998, subdivision 1 as amended by chapter 410 of  the
   45  laws  of 1999 and subdivision 4 as amended by chapter 491 of the laws of
   46  2000, is amended to read as follows:
   47    § 1735. Certain contracts of the authority.  1.  [Notwithstanding  the
   48  provisions  of  paragraph  b  of  subdivision  one  of section seventeen
   49  hundred thirty-four of this title, the award of  construction  contracts
   50  by  the  authority  between July first, nineteen hundred eighty-nine and
   51  June thirtieth, two thousand two, shall not be subject to the provisions
   52  of section one hundred one of the general municipal law.
   53    2.] Notice of the invitation for bids  for  contracts  to  be  awarded
   54  pursuant  to  this section shall state the time and place of the receipt
   55  and opening of bids.
       S. 1406                            206                           A. 2106
 
    1    [3. All bidders shall submit to the authority, prior to the opening of
    2  a bid for the award of a contract under  this  section,  a  sealed  list
    3  identifying  the names of each subcontractor each contractor proposes to
    4  utilize under the contract for the performance of the following subdivi-
    5  sions of work:
    6    a. Plumbing and gas fitting;
    7    b.  Steam heating, hot water heating, ventilating and air conditioning
    8  apparatus; and
    9    c. Electric wiring and standard illuminating fixtures.
   10    The low bidder shall specify in such list the estimated  value  to  be
   11  paid  each  such  subcontractor  for  the  work  to be performed by such
   12  subcontractor. After the authority has announced the low bidder  at  the
   13  bid  opening,  the  authority shall open only such low bidder's separate
   14  sealed list and shall read aloud such subcontractors listed therein. All
   15  such sealed lists except those of  the  low  bidder  shall  be  returned
   16  unopened  to  their  respective  contractors following the awarding of a
   17  contract.
   18    4.] 2. The authority shall establish a committee to review and  report
   19  on  contracts  issued pursuant to this section and on the procedures and
   20  methodology of the authority in  awarding  such  contracts.  The  review
   21  shall  include,  but  not be limited to, the degree to which contractors
   22  awarded contracts pursuant to such  paragraph,  and  the  subcontractors
   23  utilized  by them, utilize employees who are represented by labor organ-
   24  izations, comply with  existing  labor  standards,  maintain  harmonious
   25  labor  relations  and  recognize state approved apprentice programs. The
   26  committee shall, from time  to  time,  issue  economic  and  statistical
   27  reports  dealing with the costs of construction under this article. Such
   28  reports shall deal with the costs  of  labor,  material,  equipment  and
   29  profit.  The  committee shall have no authority to approve or disapprove
   30  contracts. The committee shall be composed of two  representatives  from
   31  the  authority,  one  representative from the board, two representatives
   32  from construction-related labor organizations  and  two  representatives
   33  from  the construction industry[, at least one of whom shall be involved
   34  in the subdivisions of work  described  in  subdivision  three  of  this
   35  section].  The president of the authority shall designate the members of
   36  the committee, provided, however, that the president shall designate the
   37  representatives of labor organizations from a list of names submitted by
   38  the New York state AFL-CIO.
   39    [5.] 3. In awarding contracts pursuant to this section  the  authority
   40  shall,  in  addition  to  the  factors set forth in subdivision three of
   41  section seventeen  hundred  thirty-four  of  this  title,  consider  the
   42  following  factors when establishing a list of pre-qualified bidders for
   43  construction work: (a) the degree to which a contractor or subcontractor
   44  utilizes employees who are represented by a labor organization; (b)  the
   45  absence  of  any  intentional  misrepresentation with regard to lists of
   46  subcontractors previously submitted pursuant to the provisions of subdi-
   47  vision two of this section; and (c) the record of the bidder in  comply-
   48  ing   with   existing  labor  standards,  maintaining  harmonious  labor
   49  relations and recognizing state approved apprentice programs.
   50    [6.] 4. The authority shall provide in its construction,  erection  or
   51  alteration  contracts which implement a five year educational facilities
   52  capital plan a provision that shall  require  each  contractor  to  make
   53  prompt  payment  to  its  subcontractors [performing each subdivision of
   54  work listed in subdivision three of this section]. Within seven calendar
   55  days of the receipt of any payment from the  authority,  the  contractor
   56  shall  pay  to  each  such subcontractor that portion of the proceeds of
       S. 1406                            207                           A. 2106
 
    1  such payment representing the  value  of  the  work  performed  by  such
    2  subcontractor, based upon the actual value of the subcontract, which has
    3  been approved and paid for by the authority, less an amount necessary to
    4  satisfy  any  claims, liens or judgments against the subcontractor which
    5  have not been suitably discharged and less any amount  retained  by  the
    6  contractor  as  provided  herein.  For such purpose, the subcontract may
    7  provide that the contractor may retain not more than five per centum  of
    8  each  payment  to  the  subcontractor or not more than ten per centum of
    9  each such payment if prior to entering into the subcontract the  subcon-
   10  tractor  is  unable  or  unwilling  to  provide,  at  the request of the
   11  contractor, a performance bond and a labor and material bond both in the
   12  amount of the subcontract.
   13    At the time of making a payment to the contractor for  work  performed
   14  by  the subcontractors [set forth in subdivision three of this section],
   15  the authority shall file in its office  for  review  a  record  of  such
   16  payment.    If any such subcontractor shall notify the authority and the
   17  contractor in writing that the contractor has failed to make  a  payment
   18  to  it  as  provided  herein  and the contractor shall fail, within five
   19  calendar days after receipt of such notice, to furnish either  proof  of
   20  such  payment  or notice that the amount claimed by the subcontractor is
   21  in dispute, the authority shall withhold from amounts then or thereafter
   22  becoming due and payable to the  contractor,  other  than  from  amounts
   23  becoming  due  and  payable  to the contractor representing the value of
   24  work approved by the authority and performed by other subcontractors and
   25  which the contractor is required to pay to  such  subcontractors  within
   26  seven  calendar days as herein provided, an amount equal to that portion
   27  of the authority's prior payment to the contractor which the subcontrac-
   28  tor claims to be due it, shall remit the amount when and so withheld  to
   29  the  subcontractor  and deduct such payment from the amounts then other-
   30  wise due and payable to the contractor, which payment shall, as  between
   31  the  contractor  and the authority, be deemed a payment by the authority
   32  to the contractor. In the event the contractor shall notify the authori-
   33  ty as above provided that the claim of the subcontractor is in  dispute,
   34  the  authority  shall  withhold from amounts then or thereafter becoming
   35  due and payable to the contractor, other than from amounts becoming  due
   36  and payable to the contractor representing the value of work approved by
   37  the  authority  and  performed  by  other  subcontractors  and which the
   38  contractor is required to pay to such subcontractors within seven calen-
   39  dar days as herein provided, an amount equal  to  that  portion  of  the
   40  authority's  prior  payment  to  the  contractor which the subcontractor
   41  claims to be due it and deposit such amount when and so  withheld  in  a
   42  separate interest-bearing account pending resolution of the dispute, and
   43  the amount so deposited together with the interest thereon shall be paid
   44  to the party or parties ultimately determined to be entitled thereto, or
   45  until  the  contractor and subcontractor shall otherwise agree as to the
   46  disposition thereof. In the event the authority  shall  be  required  to
   47  withhold  amounts  from  a  contractor  for the benefit of more than one
   48  subcontractor, the amounts so withheld shall be applied to or  for  such
   49  subcontractors  in  the order in which the written notices of nonpayment
   50  have been received by the authority, and if more than  one  such  notice
   51  was  received  on the same day, proportionately based upon the amount of
   52  the subcontractor claims received on such day. Nothing herein  contained
   53  shall  prevent  the  authority from commencing an interpleader action to
   54  determine entitlement to a disputed payment in accordance  with  section
   55  one  thousand  six of the civil practice law and rules, or any successor
   56  provision thereto.
       S. 1406                            208                           A. 2106
 
    1    Payment to a subcontractor  shall  not  relieve  the  contractor  from
    2  responsibility  for the work covered by the payment. Except as otherwise
    3  provided, nothing contained herein shall create any  obligation  on  the
    4  part  of  the  authority  to  pay  any subcontractor, nor shall anything
    5  provided  herein  serve to create any relationship in contract or other-
    6  wise, implied or expressed, between the subcontractor and the authority.
    7    [The provisions of this subdivision shall not  be  applicable  to  the
    8  subcontractors of a contractor whose contract is limited to the perform-
    9  ance of a single subdivision of work listed in subdivision three of this
   10  section.
   11    7.]  5.  The provisions of this section shall cease to be in effect in
   12  the event any of the provisions of this section shall be adjudged to  be
   13  invalid  by the final judgment of a court of competent jurisdiction from
   14  which  judgment  all  appeals  or  applications  for  relief  have  been
   15  exhausted or the time therefor has expired, provided, however, that such
   16  appeals or applications are pursued promptly.
   17    §  51.  Subdivision 1 of section 1840-n of the public authorities law,
   18  as added by chapter 273 of the laws of  1979,  is  amended  to  read  as
   19  follows:
   20    1.  Construction contracts let by the authority or a local development
   21  corporation shall be in conformity with  the  applicable  provisions  of
   22  [sections one hundred thirty-five and] section one hundred forty-four of
   23  the state finance law.
   24    §  52. Section 1949-d of the public authorities law, as added by chap-
   25  ter 130 of the laws of 1996, is amended to read as follows:
   26    § 1949-d. Contracts. All contracts for construction shall be  let  [by
   27  the  authority  in  conformity with the applicable provisions of section
   28  one hundred thirty-five of the state finance law and shall  be  let]  in
   29  accordance  with  the  provisions  of state law pertaining to prevailing
   30  wages, labor standards and working hours.
   31    The authority may, in its discretion, assign contracts for supervision
   32  and coordination to the successful bidder for any  subdivision  of  work
   33  for which the authority receives bids. The authority shall not award any
   34  construction  contract  except to the lowest bidder who, in its opinion,
   35  is qualified to perform the work required and  who  is  responsible  and
   36  reliable.  The  authority  may, however, reject any or all bids or waive
   37  any informality in a bid if it believes that the public interest will be
   38  promoted thereby. The authority may reject any bid if, in its  judgment,
   39  the  business  and  technical  organization, plant, resources, financial
   40  standing, or experience of the bidder justifies such rejection  in  view
   41  of the work to be performed.
   42    §  53. Subdivision 4 of section 1974 of the public authorities law, as
   43  amended by chapter 596 of the laws  of  1973,  is  amended  to  read  as
   44  follows:
   45    4.  To  acquire,  construct,  improve, enlarge, operate and maintain a
   46  project within the project area as defined herein and all  other  struc-
   47  tures,   appurtenances   and   facilities  necessary  or  convenient  in
   48  connection  therewith,  [provided,  however,  that  all  contracts   for
   49  construction  let  by  the authority shall be let in conformity with the
   50  provisions of section one hundred thirty-five of the state finance law,]
   51  except that contracts  for  construction  let  by  subsidiaries  of  the
   52  authority  shall  be  governed [instead] by the applicable provisions of
   53  the private housing finance law;
   54    § 54. Subdivision 1 of section 2051-p of the public  authorities  law,
   55  as  added  by  chapter  667  of  the laws of 1988, is amended to read as
   56  follows:
       S. 1406                            209                           A. 2106
 
    1    1. All contracts or orders, for work, material or  supplies  performed
    2  or  furnished  in  connection with construction, shall be awarded by the
    3  agency pursuant to resolution of the governing body except as hereinaft-
    4  er provided. Such awards, when applicable, shall be made  in  compliance
    5  with  paragraph  (e)  of subdivision four and subdivision seven[, except
    6  paragraph (b),] of section one hundred twenty-w of the general municipal
    7  law. In any construction contract, the agency may provide a program  for
    8  the  payment  of  damages  for  delays  and incentive awards in order to
    9  encourage timely project completion.   An  action,  suit  or  proceeding
   10  contesting  the validity of a contract awarded pursuant to this section,
   11  or the validity of the procedures  relating  to  such  award,  shall  be
   12  governed  by  the  provisions  of subdivision six of section one hundred
   13  twenty-w of the general municipal law and  the  term  "municipality"  as
   14  used in such subdivision six shall mean the agency.
   15    § 55. Subdivision 2 of section 2350-o of the public authorities law is
   16  REPEALED and subdivision 3 is renumbered subdivision 2.
   17    §  56.  Paragraph  (a)  of subdivision 6 of section 2466 of the public
   18  authorities law is REPEALED and paragraphs (b) and  (c)  are  relettered
   19  paragraphs (a) and (b).
   20    §  57. Subdivision 1 of section 2508 of the public authorities law, as
   21  added by chapter 816 of the laws of 1973, is amended to read as follows:
   22    1. All contracts for the construction, reconstruction,  rehabilitation
   23  or  improvement  of  buildings  or structures shall be let in the manner
   24  provided by law for contracts of the city. The authority [in] if prepar-
   25  ing separate specifications may provide for assignment of responsibility
   26  for coordination of any of the contracts for such work to a  responsible
   27  person, firm or corporation.
   28    §  58. Section 2591 of the public authorities law, as added by chapter
   29  545 of the laws of 2000, is amended to read as follows:
   30    § 2591. Contracts.  1. [Construction contracts let  by  the  authority
   31  shall  be  in  conformity  with the applicable provisions of section one
   32  hundred thirty-five of the state finance law.
   33    2.] The authority may, in its discretion, assign contracts for  super-
   34  vision  and coordination to the successful bidder for any subdivision of
   35  work for which the authority receives bids.  Any  construction  contract
   36  awarded  by  the authority shall contain such other terms and conditions
   37  as the authority may deem desirable. The authority shall not  award  any
   38  construction  contract  except to the lowest bidder who, in its opinion,
   39  is qualified to perform the work required and  who  is  responsible  and
   40  reliable.  The  authority  may, however, reject any or all bids or waive
   41  any informality in a bid if it believes that the public interest will be
   42  promoted thereby. The authority may reject any bid, if, in its judgment,
   43  the business and technical  organization,  plant,  resources,  financial
   44  standing,  or  experience of the bidder justifies such rejection in view
   45  of the work to be performed.
   46    [3.] 2. All contracts or leases for the construction,  reconstruction,
   47  rehabilitation  or  improvement  of buildings let by the authority shall
   48  comply with the provisions of section two hundred twenty  of  the  labor
   49  law.
   50    [4.]  3.  For  the  purposes of article fifteen-A of the executive law
   51  only, the authority shall be deemed a state agency as that term is  used
   52  in   such   article,   and   all   contracts  for  procurement,  design,
   53  construction, services and materials shall  be  deemed  state  contracts
   54  within the meaning of that term as set forth in such article.
   55    [5.] 4. If after consideration, the authority determines acting within
   56  its  discretion  and  proprietary capacity that given the purpose of any
       S. 1406                            210                           A. 2106
 
    1  project and the impact of delay, the possibility of cost savings  advan-
    2  tages,  and  the  local history of labor unrest, if any, its interest in
    3  obtaining the best work at the  lowest  possible  price  and  preventing
    4  favoritism,  fraud  and  corruption  are best met by requiring a project
    5  labor agreement as an incident of any  contract  let  by  the  authority
    6  regarding any project, it may require such a project labor agreement.
    7    §  59. Subdivision 1 of section 2620 of the public authorities law, as
    8  added by chapter 404 of the laws of 1981, is amended to read as follows:
    9    1. Construction contracts let by the authority shall be in  conformity
   10  with the applicable provisions of [sections one hundred thirty-five and]
   11  section one hundred forty-four of the state finance law.
   12    §  60. Section 2642-m of the public authorities law, as added by chap-
   13  ter 75 of the laws of 2000, is amended to read as follows:
   14    § 2642-m. Contracts. 1. All contracts  for  the  construction,  recon-
   15  struction, rehabilitation or improvement of buildings let by the author-
   16  ity  shall  comply  with the provisions of section two hundred twenty of
   17  the labor law and shall also be subject to the provisions of law  appli-
   18  cable  to  contracts let by a municipal corporation, except as otherwise
   19  provided herein.
   20    2. [All contracts for the construction, reconstruction, rehabilitation
   21  or improvement of buildings let by the authority shall be in  conformity
   22  with the applicable provisions of section one hundred thirty-five of the
   23  state finance law.
   24    3.]  The authority may, in its discretion, assign contracts for super-
   25  vision and coordination to the successful bidder for any subdivision  of
   26  work  for  which  the authority receives bids. Any construction contract
   27  awarded by the authority shall contain such other terms  and  conditions
   28  as  the  authority  may  deem  desirable.  The authority shall award any
   29  construction contract involving an expenditure of more than  five  thou-
   30  sand  dollars  to the lowest bidder who, in its opinion, is qualified to
   31  perform the work required and  who  is  responsible  and  reliable.  The
   32  authority  may, however, reject any or all bids or waive any informality
   33  in a bid if it believes that the public interest will be promoted there-
   34  by. The authority may reject any bid, if, in its judgment, the  business
   35  and  technical  organization,  plant,  resources, financial standing, or
   36  experience of the bidder justifies such rejection in view of the work to
   37  be performed.
   38    [4.] 3. For the purposes of article fifteen-A  of  the  executive  law
   39  only,  the authority shall be deemed a state agency as that term is used
   40  in  such  article,  and   all   contracts   for   procurement,   design,
   41  construction,  services  and  materials  shall be deemed state contracts
   42  within the meaning of that term as set forth in such article.
   43    § 61. Section 2656 of the public authorities law, as added by  chapter
   44  124  of the laws of 1998, subdivision 3 as amended by chapter 631 of the
   45  laws of 2002, is amended to read as follows:
   46    § 2656. Contracts. 1. [Construction contracts  let  by  the  authority
   47  shall  be  in  conformity  with the applicable provisions of section one
   48  hundred thirty-five of the state finance law.
   49    2.] The authority may, in its discretion, assign contracts for  super-
   50  vision  and coordination to the successful bidder for any subdivision of
   51  work for which the authority receives bids.  Any  construction  contract
   52  awarded  by  the authority shall contain such other terms and conditions
   53  as the authority may deem desirable. The authority shall not  award  any
   54  construction  contract  except to the lowest bidder who, in its opinion,
   55  is qualified to perform the work required and  who  is  responsible  and
   56  reliable.  The  authority  may, however, reject any or all bids or waive
       S. 1406                            211                           A. 2106
 
    1  any informality in a bid if it believes that the public interest will be
    2  promoted thereby. The authority may reject any bid, if, in its judgment,
    3  the business and technical  organization,  plant,  resources,  financial
    4  standing,  or  experience of the bidder justifies such rejection in view
    5  of the work to be performed.
    6    [3.] 2. Each contract to which the authority is a party including, but
    7  not limited to, any contract, lease, grant,  bond,  covenant,  or  other
    8  debt  agreement  entered  into  directly  or indirectly by the authority
    9  financing in whole or in  part,  the  construction,  demolition,  recon-
   10  struction,  excavation, rehabilitation, repair, renovation or alteration
   11  of a building or an improvement to property shall require  that  employ-
   12  ers, contractors and sub-contractors shall comply with the provisions of
   13  section two hundred twenty of the labor law.
   14    [4.]  3.  For  the  purposes of article fifteen-A of the executive law
   15  only, the authority shall be deemed a state agency as that term is  used
   16  in   such   article,   and   all   contracts  for  procurement,  design,
   17  construction, services and materials shall  be  deemed  state  contracts
   18  within the meaning of that term as set forth in such article[;].
   19    §  62.  Subdivision 1 of section 2680-q of the public authorities law,
   20  as added by chapter 632 of the laws of  1999,  is  amended  to  read  as
   21  follows:
   22    1.  The  authority shall let contracts for construction or purchase of
   23  supplies, materials, or equipment pursuant to [sections one hundred  one
   24  and]  section one hundred three of the general municipal law. Nothing in
   25  this section shall be construed to limit the powers of the authority  to
   26  do  any  construction  directly by the officers, agents and employees of
   27  the authority.
   28    § 63. Subdivision 1 of section 2722 of the public authorities  law  is
   29  REPEALED and subdivisions 2 and 3 are renumbered subdivisions 1 and 2.
   30    §  64. Section 2768 of the public authorities law, as added by chapter
   31  663 of the laws of 1989, is amended to read as follows:
   32    § 2768. Contracts. All contracts for construction shall be let by  the
   33  authority  in  conformity with the applicable provisions of [section one
   34  hundred thirty-five of the state finance law and shall be let in accord-
   35  ance with the provisions of] state law pertaining to  prevailing  wages,
   36  labor  standards and working hours. [In the case of industrial projects,
   37  whenever the authority determines that trade secrets or other  confiden-
   38  tial information about the prospective project occupant's business oper-
   39  ations,  products,  processes  or  designs  would  be revealed by public
   40  bidding, the requirements of section  one  hundred  thirty-five  of  the
   41  state finance law with respect to public bidding may be waived.  In such
   42  event,  separate  specifications shall be prepared for, and separate and
   43  independent contracts shall be entered into,  for  the  following  three
   44  subdivisions  of work to be performed: (a) plumbing and gas fitting; (b)
   45  steam heating, hot water heating, ventilating and air conditioning appa-
   46  ratus; and (c) electric wiring and standard illuminating fixtures.]  The
   47  authority  may,  in its discretion, assign contracts for supervision and
   48  coordination to the successful bidder for any subdivision  of  work  for
   49  which  the  authority  receives  bids. The authority shall not award any
   50  construction contract except to the lowest bidder who, in  its  opinion,
   51  is  qualified  to  perform  the work required and who is responsible and
   52  reliable. The authority may, however, reject any or all  bids  or  waive
   53  any informality in a bid if it believes that the public interest will be
   54  promoted  thereby. The authority may reject any bid if, in its judgment,
   55  the business and technical  organization,  plant,  resources,  financial
       S. 1406                            212                           A. 2106
 
    1  standing,  or  experience of the bidder justifies such rejection in view
    2  of the work to be performed.
    3    §  65. Section 2794 of the public authorities law, as added by chapter
    4  686 of the laws of 1993, is amended to read as follows:
    5    § 2794. Contracts. All contracts for construction shall be let by  the
    6  authority  in  conformity with the applicable provisions of [section one
    7  hundred thirty-five of the state finance law and shall be let in accord-
    8  ance with the provisions of] state law pertaining to  prevailing  wages,
    9  labor standards and working hours.
   10    The authority may, in its discretion, assign contracts for supervision
   11  and  coordination  to  the successful bidder for any subdivision of work
   12  for which the authority receives bids. The authority shall not award any
   13  construction contract except to the lowest bidder who, in  its  opinion,
   14  is  qualified  to  perform  the work required and who is responsible and
   15  reliable. The authority may, however, reject any or all  bids  or  waive
   16  any informality in a bid if it believes that the public interest will be
   17  promoted  thereby. The authority may reject any bid if, in its judgment,
   18  the business and technical  organization,  plant,  resources,  financial
   19  standing,  or  experience of the bidder justifies such rejection in view
   20  of the work to be performed.
   21    § 66. The opening paragraph of subdivision 9 of section  3303  of  the
   22  public  authorities  law, as added by chapter 11 of the laws of 1997, is
   23  amended to read as follows:
   24    It is the intent of the legislature that overall cost  should  in  all
   25  cases  be  a  major criterion in the selection of project developers for
   26  award of contracts pursuant to this section and that,  wherever  practi-
   27  cal,  such  contracts should be entered into through competitive bidding
   28  procedures as prescribed by [sections one hundred one and]  section  one
   29  hundred three of the general municipal law.  It is further the intent of
   30  the  legislature to acknowledge the highly complex and innovative nature
   31  of medical technology, diagnostic and treatment  devices,  the  relative
   32  newness of a variety of devices, processes and procedures now available,
   33  the desirability of a single point of responsibility for the development
   34  of  medical  treatment  and  diagnostic  facilities and the economic and
   35  technical utility of contracts for medical  projects  which  include  in
   36  their  scope  various  combinations  of design, construction, operation,
   37  management and/or maintenance responsibility over prolonged  periods  of
   38  time  and that in some instances it may be beneficial to the corporation
   39  to award a contract for a medical project on the basis of factors  other
   40  than  cost  alone,  including but not limited to facility design, system
   41  reliability, efficiency, safety, and compatibility with  other  elements
   42  of  patient care. Accordingly, and notwithstanding the provisions of any
   43  general, special or local law or  chapter,  a  contract  for  a  medical
   44  project  entered  into between the corporation and any project developer
   45  pursuant to this section may be awarded pursuant to  public  bidding  in
   46  compliance  with  sections  one hundred one and one hundred three of the
   47  general municipal law or pursuant to the following  provisions  for  the
   48  award  of  a  contract  based  on  evaluation  of proposals submitted in
   49  response to a request for proposals prepared by or for the corporation:
   50    § 67. Subdivision 10 of section 3303 of the public authorities law, as
   51  added by chapter 11 of the laws of 1997, is amended to read as follows:
   52    10. Every contract entered into between the corporation and a  project
   53  developer,  pursuant  to  the provisions of paragraph (d) of subdivision
   54  nine of this section, for a medical project involving construction of  a
   55  medical building by the project developer, shall contain provisions that
   56  such  building  shall  be  constructed  through  construction  contracts
       S. 1406                            213                           A. 2106
 
    1  awarded through competitive bidding in accordance  with  paragraphs  (a)
    2  through [(g)] (f) of this subdivision; that the project developer or the
    3  project    developer's  construction  subcontractor shall furnish a bond
    4  guaranteeing  prompt  payment  of  moneys  that  are  due to all persons
    5  furnishing labor and materials pursuant  to  the  requirements  of  such
    6  construction  contracts,  and  that a copy of such payment bond shall be
    7  kept by  the  corporation  and  shall  be  open  to  public  inspection;
    8  provided,  however,  that the requirements of this subdivision shall not
    9  apply when the cost of such  construction,  exclusive  of  the  cost  of
   10  medical  equipment  and  devices,  is  less  than  seventy-five thousand
   11  dollars.
   12    (a)  The  project  developer  shall  advertise  for  bids   for   such
   13  construction  contracts  in a daily newspaper having general circulation
   14  in the county.  Such advertisement shall contain a statement of the time
   15  and place where all bids  received  pursuant  to  such  notice  will  be
   16  publicly  opened  and  read.    An  employee of the corporation shall be
   17  designated to open the bids at the  time  and  place  specified  in  the
   18  notice.  All bids received shall be publicly opened and read at the time
   19  and  place  so  specified.   At least five days shall elapse between the
   20  publication of such advertisement and date on which the bids are opened.
   21    (b) [When the entire cost of constructing such building, exclusive  of
   22  any  medical  equipment, apparatus or devices, shall exceed seventy-five
   23  thousand dollars, the project developer shall prepare separate  specifi-
   24  cations  for  the  following  subdivisions of such work, so as to permit
   25  separate and independent bidding upon each subdivision:
   26    (i) plumbing and gas fittings;
   27    (ii) steam heating, hot water heating, ventilating and air  condition-
   28  ing apparatus; and
   29    (iii) electric wiring and standard illuminating fixtures.
   30    (c)  After  public  competitive  bidding,  the project developer shall
   31  award one or more separate contracts for each of the above  subdivisions
   32  of  such work, whenever separate specifications are required pursuant to
   33  paragraph (b) of this subdivision, and one or  more  contracts  for  the
   34  remainder  of such work.  The project developer may award such contracts
   35  at different times.]  Contracts awarded pursuant to this paragraph shall
   36  be awarded by the  project  developer  to  the  lowest  responsible  and
   37  responsive  bidder  and  shall be contracts of the project developer and
   38  not of the corporation which shall have no  obligation  or  liabilities,
   39  whatsoever,  thereunder.  The project developer shall have the responsi-
   40  bility for  the  supervision,  coordination,  and  termination  of  such
   41  contracts,  unless  otherwise specified in contractual terms between the
   42  project developer and the corporation.
   43    [(d)] (c) In determining whether a prospective contractor is responsi-
   44  ble and responsive, the project developer may require  that  prospective
   45  contractors:
   46    (i)  have  adequate  financial resources or the ability to obtain such
   47  resources;
   48    (ii) be able to comply with  the  required  or  proposed  delivery  or
   49  performance schedule;
   50    (iii) have a satisfactory record of performance;
   51    (iv)   have   the   necessary  organization,  experience,  operational
   52  controls, and technical skills, or the ability to obtain them;
   53    (v) have the necessary production, construction and  technical  equip-
   54  ment and facilities, or the ability to obtain them; and
   55    (vi)  be  eligible to receive an award under applicable laws and regu-
   56  lations and be otherwise qualified.
       S. 1406                            214                           A. 2106
 
    1    [(e)] (d) The project developer may reject any bid of a  bidder  which
    2  the  project  developer determines to be nonresponsible or nonresponsive
    3  to the advertisement for bids.
    4    [(f)]  (e)  The  project  developer may, in its discretion, reject all
    5  bids, and may revise bid specifications and may readvertise for bids  as
    6  provided herein.
    7    [(g)] (f) Only as used in this section:
    8    (i)  "project  developer"  means any private corporation, partnership,
    9  limited liability company, or individual, or combination  thereof  which
   10  has submitted a proposal in response to a request for proposals;
   11    (ii)  "construction"  shall  include reconstruction, rehabilitation or
   12  improvement exclusive of the installation and assembly  of  any  medical
   13  equipment, apparatus or device;
   14    (iii)  "medical  building"  means  that component of a medical project
   15  constituting appurtenant structures or facilities necessary to house  or
   16  render  the  remaining  components  of  the medical project operational.
   17  Medical  building  shall  not  include  apparatus,  equipment,  devices,
   18  systems, supplies or any combination thereof;
   19    (iv) "medical project" means any substantial durable apparatus, equip-
   20  ment,  device  or system, or any combination of the foregoing, including
   21  services necessary to install, erect, or assemble the foregoing and  any
   22  appurtenant  structures  or  facilities necessary to house or render the
   23  foregoing operational, to be used for the purpose of care, treatment  or
   24  diagnosis  of  disease  or injury or the relief of pain and suffering of
   25  sick or injured persons.  Medical projects shall  not  include  ordinary
   26  supplies  and  equipment  expended or utilized in the customary care and
   27  treatment of patients.
   28    § 68. The opening paragraph of subdivision 8 of section  3402  of  the
   29  public  authorities  law,  as added by chapter 9 of the laws of 1997, is
   30  amended to read as follows:
   31    It is the intent of the legislature that overall cost  should  in  all
   32  cases  be  a  major criterion in the selection of project developers for
   33  award of contracts pursuant to this section and that,  wherever  practi-
   34  cal, such contracts should be entered into pursuant to the provisions of
   35  [sections  one hundred one and] section one hundred three of the general
   36  municipal law.  It is further the intent of the legislature to  acknowl-
   37  edge  the  highly  complex  and innovative nature of medical technology,
   38  diagnostic and treatment devices, the relative newness of a  variety  of
   39  devices,  processes  and procedures now available, the desirability of a
   40  single point of responsibility for the development of medical  treatment
   41  and  diagnostic  facilities  and  the  economic and technical utility of
   42  contracts for medical projects which  include  in  their  scope  various
   43  combinations of design, construction, operation, management and/or main-
   44  tenance  responsibility  over prolonged periods of time and that in some
   45  instances it may be beneficial to the corporation to  award  a  contract
   46  for  a  medical  project on the basis of factors other than capital cost
   47  alone, including but not limited to facility design, system reliability,
   48  efficiency, safety, long-term operating  costs  and  compatibility  with
   49  other  elements  of  patient  care. Accordingly, and notwithstanding the
   50  provisions of any general, special or local law or chapter,  a  contract
   51  for  a  medical  project  entered  into  between the corporation and any
   52  project developer pursuant to this section may be  awarded  pursuant  to
   53  public bidding in compliance with [sections one hundred one and] section
   54  one  hundred  three  of  the  general  municipal  law or pursuant to the
   55  following provisions for the award of a contract based on evaluation  of
       S. 1406                            215                           A. 2106
 
    1  proposals  submitted  in response to a request for proposals prepared by
    2  or for the corporation:
    3    §  69. Subdivision 9 of section 3402 of the public authorities law, as
    4  added by chapter 9 of the laws of 1997, is amended to read as follows:
    5    9. Every contract entered into between the corporation and  a  project
    6  developer,  pursuant  to  the provisions of paragraph (d) of subdivision
    7  eight of this section, for a medical project involving construction of a
    8  medical building by the project developer, shall contain provisions that
    9  such  building  shall  be  constructed  through  construction  contracts
   10  awarded  through  competitive  bidding in accordance with paragraphs (a)
   11  through [(g)] (f) of this subdivision; that the project developer or the
   12  project   developer's construction subcontractor shall  furnish  a  bond
   13  guaranteeing  prompt  payment  of  moneys  that  are  due to all persons
   14  furnishing labor and materials pursuant  to  the  requirements  of  such
   15  construction  contracts,  and  that a copy of such payment bond shall be
   16  kept by  the  corporation  and  shall  be  open  to  public  inspection;
   17  provided,  however,  that the requirements of this subdivision shall not
   18  apply when the cost of such  construction,  exclusive  of  the  cost  of
   19  medical  equipment  and  devices,  is  less  than  seventy-five thousand
   20  dollars.
   21    (a)  The  project  developer  shall  advertise  for  bids   for   such
   22  construction  contracts  in a daily newspaper having general circulation
   23  in the county.  Such advertisement shall contain a statement of the time
   24  and place where all bids  received  pursuant  to  such  notice  will  be
   25  publicly  opened  and  read.    An  employee of the corporation shall be
   26  designated to open the bids at the  time  and  place  specified  in  the
   27  notice.  All bids received shall be publicly opened and read at the time
   28  and  place  so  specified.   At least five days shall elapse between the
   29  publication of such advertisement and date on which the bids are opened.
   30    (b) [When the entire cost of constructing such building, exclusive  of
   31  any  medical  equipment, apparatus or devices, shall exceed seventy-five
   32  thousand dollars, the project developer shall prepare separate  specifi-
   33  cations  for  the  following  subdivisions of such work, so as to permit
   34  separate and independent bidding upon each subdivision:
   35    (i) plumbing and gas fittings;
   36    (ii) steam heating, hot water heating, ventilating and air  condition-
   37  ing apparatus; and
   38    (iii) electric wiring and standard illuminating fixtures.
   39    (c)  After  public  competitive  bidding,  the project developer shall
   40  award one or more separate contracts for each of the above  subdivisions
   41  of  such work, whenever separate specifications are required pursuant to
   42  paragraph (b) of this subdivision, and one or  more  contracts  for  the
   43  remainder  of such work.  The project developer may award such contracts
   44  at different times.]  Contracts awarded pursuant to this paragraph shall
   45  be awarded by the  project  developer  to  the  lowest  responsible  and
   46  responsive  bidder  and  shall be contracts of the project developer and
   47  not of the corporation which shall have no  obligation  or  liabilities,
   48  whatsoever,  thereunder.  The project developer shall have the responsi-
   49  bility for  the  supervision,  coordination,  and  termination  of  such
   50  contracts,  unless  otherwise specified in contractual terms between the
   51  project developer and the corporation.
   52    [(d)] (c) In determining whether a prospective contractor is responsi-
   53  ble and responsive, the project developer may require  that  prospective
   54  contractors:
   55    (i)  have  adequate  financial resources or the ability to obtain such
   56  resources;
       S. 1406                            216                           A. 2106
 
    1    (ii) be able to comply with  the  required  or  proposed  delivery  or
    2  performance schedule;
    3    (iii) have a satisfactory record of performance;
    4    (iv)   have   the   necessary  organization,  experience,  operational
    5  controls, and technical skills, or the ability to obtain them;
    6    (v) have the necessary production, construction and  technical  equip-
    7  ment and facilities, or the ability to obtain them; and
    8    (vi)  be  eligible to receive an award under applicable laws and regu-
    9  lations and be otherwise qualified.
   10    [(e)] (d) The project developer may reject any bid of a  bidder  which
   11  the  project  developer determines to be nonresponsible or nonresponsive
   12  to the advertisement for bids.
   13    [(f)] (e) The project developer may, in  its  discretion,  reject  all
   14  bids,  and may revise bid specifications and may readvertise for bids as
   15  provided herein.
   16    [(g)] (f) Only as used in this section:
   17    (i) "project developer" means any  private  corporation,  partnership,
   18  limited  liability  company, or individual, or combination thereof which
   19  has submitted a proposal in response to a request for proposals;
   20    (ii) "construction" shall include  reconstruction,  rehabilitation  or
   21  improvement  exclusive  of  the installation and assembly of any medical
   22  equipment, apparatus or device;
   23    (iii) "medical building" means that component  of  a  medical  project
   24  constituting  appurtenant structures or facilities necessary to house or
   25  render the remaining components  of  the  medical  project  operational.
   26  Medical  building  shall  not  include  apparatus,  equipment,  devices,
   27  systems, supplies or any combination thereof;
   28    (iv) "medical project" means any substantial durable apparatus, equip-
   29  ment, device or system, or any combination of the  foregoing,  including
   30  services  necessary to install, erect, or assemble the foregoing and any
   31  appurtenant structures or facilities necessary to house  or  render  the
   32  foregoing  operational, to be used for the purpose of care, treatment or
   33  diagnosis of disease or injury or the relief of pain  and  suffering  of
   34  sick  or  injured persons.   Medical projects shall not include ordinary
   35  supplies and equipment expended or utilized in the  customary  care  and
   36  treatment of patients.
   37    §  70.  The  opening paragraph of subdivision 8 of section 3603 of the
   38  public authorities law, as added by chapter 507 of the laws of 1999,  is
   39  amended to read as follows:
   40    It  is  the intent of the legislature that overall costs should in all
   41  cases [by] be a major criterion in the selection of  project  developers
   42  for  the  award of contracts pursuant to this section and that, wherever
   43  practical, such contracts should be  entered  into  through  competitive
   44  bidding  procedures  as  prescribed  by  [sections  one hundred one and]
   45  section one hundred three of the general municipal law.  It  is  further
   46  the  intent  of  the  legislature  to acknowledge the highly complex and
   47  innovative  nature  of  medical  technology,  diagnostic  and  treatment
   48  devices,  the  relative  newness  of a variety of devices, processes and
   49  procedures now available, the desirability of a single point of  respon-
   50  sibility for the development of medical treatment and diagnostic facili-
   51  ties  and  the  economic  and technical utility of contracts for medical
   52  projects which include in their scope various  combinations  of  design,
   53  construction,  operation,  management  and/or maintenance responsibility
   54  over prolonged periods of time. In some instances it may  be  beneficial
   55  to  the  corporation  to  award  a contract for a medical project on the
   56  basis of factors other than cost alone, including  but  not  limited  to
       S. 1406                            217                           A. 2106
 
    1  facility design, system reliability, efficiency, safety, and compatibil-
    2  ity  with other elements of patient care. Accordingly, and notwithstand-
    3  ing the provisions of any general, special or local law, a contract  for
    4  a  medical  project entered into between the corporation and any project
    5  developer pursuant to this article may be  awarded  pursuant  to  public
    6  bidding  in  compliance  with [sections one hundred one and] section one
    7  hundred three of the general municipal law or pursuant to the  following
    8  provisions  for the award of a contract based on evaluation of proposals
    9  submitted in response to a request for proposals prepared by or for  the
   10  corporation:
   11    §  71. Subdivision 9 of section 3603 of the public authorities law, as
   12  added by chapter 507 of the laws of 1999, is amended to read as follows:
   13    9. Every contract entered into between the corporation and  a  project
   14  developer,  pursuant  to  the provisions of paragraph (c) of subdivision
   15  eight of this section, for a medical project involving construction of a
   16  medical building by the project developer, shall contain provisions that
   17  such  building  shall  be  constructed  through  construction  contracts
   18  awarded  through bidding in accordance with paragraphs (a) through [(g)]
   19  (f) of this subdivision; that  the  project  developer  or  the  project
   20  developer's construction subcontractor shall furnish a bond guaranteeing
   21  prompt  payment  of  moneys that are due to all persons furnishing labor
   22  and  materials  pursuant  to  the  requirements  of  such   construction
   23  contracts,  and  that  a  copy of such payment bond shall be kept by the
   24  corporation and shall be open to public inspection;  provided,  however,
   25  that  the requirements of this subdivision shall not apply when the cost
   26  of such construction, exclusive of the cost  of  medical  equipment  and
   27  devices, is less than seventy-five thousand dollars.
   28    (a)   The   project  developer  shall  advertise  for  bids  for  such
   29  construction contracts in the official newspaper or newspapers, if  any,
   30  or  otherwise  in a newspaper or newspapers designated for such purpose.
   31  Such advertisements shall contain a statement  of  the  time  and  place
   32  where  all bids received pursuant to such notice will be publicly opened
   33  and read.  An employee of the corporation shall be  designated  to  open
   34  the  bids  at  the  time  and  place  specified  in the notice. All bids
   35  received shall be publicly opened and read at  the  time  and  place  so
   36  specified.  At  least  five days shall elapse between the publication of
   37  such advertisement and date on which the bids are opened.
   38    (b) [When the entire cost of constructing such building, exclusive  of
   39  any  medical  equipment, apparatus or devices, shall exceed seventy-five
   40  thousand dollars, the project developer shall prepare separate  specifi-
   41  cations  for  the  following  subdivisions of such work, so as to permit
   42  separate and independent bidding upon each subdivision:
   43    (i) plumbing and gas fittings;
   44    (ii) steam heating, hot water heating, ventilating and air  condition-
   45  ing apparatus; and
   46    (iii) electric wiring and standard illuminating fixtures.
   47    (c)  After  public  competitive  bidding,  the project developer shall
   48  award one or more separate contracts for each  of  the  subdivisions  of
   49  such  work  set  forth in subparagraphs (i), (ii) and (iii) of paragraph
   50  (b) of this subdivision, whenever separate specifications  are  required
   51  pursuant to paragraph (b) of this subdivision, and one or more contracts
   52  for  the  remainder  of  such work. The project developer may award such
   53  contract at different times.] Contracts awarded pursuant to  this  para-
   54  graph  shall be awarded by the project developer to the lowest responsi-
   55  ble and responsive bidder and shall be contracts of the project develop-
   56  er and not  of  the  corporation  which  shall  have  no  obligation  or
       S. 1406                            218                           A. 2106
 
    1  liabilities,  whatsoever,  thereunder.  The project developer shall have
    2  the responsibility for the supervision, coordination, and termination of
    3  such contracts, unless otherwise specified in contractual terms  between
    4  the project developer and the corporation.
    5    [(d)] (c) In determining whether a prospective contractor is responsi-
    6  ble  and  responsive, the project developer may require that prospective
    7  contractors:
    8    (i) have adequate financial resources or the ability  to  obtain  such
    9  resources;
   10    (ii)  be  able  to  comply  with  the required or proposed delivery or
   11  performance schedule;
   12    (iii) have a satisfactory record of performance;
   13    (iv)  have  the  necessary   organization,   experience,   operational
   14  controls, and technical skills, or the ability to obtain them;
   15    (v)  have  the necessary production, construction and technical equip-
   16  ment and facilities, or the ability to obtain them; and
   17    (vi) be eligible to receive an award under applicable laws  and  regu-
   18  lations and be otherwise qualified.
   19    [(e)]  (d)  The project developer may reject any bid of a bidder which
   20  the project developer determines to be nonresponsible  or  nonresponsive
   21  to the advertisement for bids.
   22    [(f)]  (e)  The  project  developer may, in its discretion, reject all
   23  bids, and may revise bid specifications and may readvertise for bids  as
   24  provided herein.
   25    [(g)] (f) As used in this section:
   26    (i)  "project  developer"  means any private corporation, partnership,
   27  limited liability company, or individual, or combination  thereof  which
   28  has submitted a proposal in response to a request for proposals;
   29    (ii)  "construction"  shall  include reconstruction, rehabilitation or
   30  improvement exclusive of the installation and assembly  of  any  medical
   31  equipment, apparatus or device;
   32    (iii)  "medical  building"  means  that component of a medical project
   33  constituting appurtenant structures or facilities necessary to house  or
   34  render  the  remaining  components  of  the medical project operational.
   35  Medical  building  shall  not  include  apparatus,  equipment,  devices,
   36  systems, supplies or any combination thereof;
   37    (iv) "medical project" means any substantial durable apparatus, equip-
   38  ment,  device  or system, or any combination of the foregoing, including
   39  services necessary to install, erect, or assemble the foregoing and  any
   40  appurtenant  structures  or  facilities necessary to house or render the
   41  foregoing operational, to be used for the purpose of care, treatment  or
   42  diagnosis  of  disease  or injury or the relief of pain and suffering of
   43  sick or injured persons. Medical projects  shall  not  include  ordinary
   44  supplies  and  equipment  expended or utilized in the customary care and
   45  treatment of patients.
   46    § 72. Subdivision 4 of section 279-c of the county law,  as  added  by
   47  chapter 504 of the laws of 1997, is amended to read as follows:
   48    4.  Every  agreement  entered  into between the district and a private
   49  entity,  pursuant  to  subdivision  one  of  this   section,   for   the
   50  construction  of  a  wastewater  treatment  facility,  shall require the
   51  payment of all applicable  prevailing  wages  pursuant  to  section  two
   52  hundred  twenty  of  the  labor law, shall require the furnishing to the
   53  district of a performance bond in the full amount of the  cost  of  such
   54  construction,  shall  require  that  each  contractor  and subcontractor
   55  performing work on such construction furnish a payment bond in the  full
   56  amount  of  its  contract guaranteeing prompt payment of monies that are
       S. 1406                            219                           A. 2106
 
    1  due to all persons furnishing labor and materials to such contractor  or
    2  subcontractor[,  and shall contain provisions that such construction, if
    3  in excess of twenty thousand dollars, shall  be  conducted  pursuant  to
    4  section  one  hundred  one of the general municipal law].  A copy of the
    5  above mentioned payment and performance  bonds  shall  be  kept  by  the
    6  district and shall be open to public inspection.
    7    §  73. Paragraph c of subdivision 2 of section 8 of section 1 of chap-
    8  ter 359 of the laws of 1968,  constituting  the  facilities  development
    9  corporation act, is amended to read as follows:
   10    c.    [The  corporation  shall prepare separate specifications for and
   11  solicit separate and independent bids on and award separate contracts on
   12  the subdivisions of work  to  be  performed  specified  in  section  one
   13  hundred thirty-five of the state finance law, but the corporation in its
   14  discretion  may  assign such contracts for supervision to the successful
   15  bidder for the remaining work to be performed at the time the  contracts
   16  for  the  particular health facility are awarded.] Each contract for the
   17  construction of a health facility  may  include  a  provision  that  the
   18  architect  who  designed  the  facility,  or  an  architect  or engineer
   19  retained or employed specifically for the purpose of supervision,  shall
   20  supervise  the  work to be performed through to completion and shall see
   21  to it that the materials furnished and the work performed are in accord-
   22  ance with the drawings, plans, specifications and contracts therefor.
   23    § 74. Subdivision 2 of section 9 of section 1 of chapter  359  of  the
   24  laws  of  1968, constituting the facilities development corporation act,
   25  paragraph a, the opening paragraph of subparagraph (i)  of  paragraph  b
   26  and  paragraph  d  as  amended by chapter 166 of the laws of 1991, para-
   27  graphs b and f as amended by chapter 658 of the laws of 1973,  paragraph
   28  g  as  amended  by  chapter  127  of the laws of 2000 and paragraph h as
   29  amended by chapter 351 of the laws  of  1989,  is  amended  to  read  as
   30  follows:
   31    2. Letting of construction contracts. a. The corporation shall design,
   32  construct,  acquire,  reconstruct,  rehabilitate  and improve all mental
   33  hygiene facilities, or cause  the  same  to  be  designed,  constructed,
   34  acquired,  reconstructed,  rehabilitated  and improved either on its own
   35  behalf or as agent for the state housing finance agency or  the  medical
   36  care  facilities  finance  agency, except that in the case of all mental
   37  hygiene facilities owned or leased by one  or  more  voluntary  agencies
   38  that  are  to be designed, constructed, reconstructed, rehabilitated and
   39  improved under any lease, sublease, loan or  other  financing  agreement
   40  entered  into  with  such  voluntary  agency,  the same may be designed,
   41  constructed, acquired, reconstructed, rehabilitated and improved by such
   42  voluntary agencies, provided that legislation or appropriations  author-
   43  izing  the  same (i) have been requested by the appropriate commissioner
   44  or director of the department, (ii) have been recommended by the  gover-
   45  nor  in  a  budget  bill,  which  is approved by the legislature for the
   46  fiscal year for which the recommendation was made  which  specifies  the
   47  mental  hygiene facilities to be designed, constructed, acquired, recon-
   48  structed, rehabilitated or improved, the total estimated cost  for  each
   49  such  facility,  and  the  date  when  it  is  desired  that the design,
   50  construction, acquisition, reconstruction, rehabilitation or improvement
   51  of each mental hygiene facility referred to therein  be  completed.  All
   52  such  work shall be performed in such manner as to assure completion, so
   53  far as practicable, by the dates specified.
   54    b. (i) The corporation may design, construct,  reconstruct,  rehabili-
   55  tate  and  improve  a  mental  hygiene  facility, other than a community
   56  mental health and retardation facility, whether as principal or as agent
       S. 1406                            220                           A. 2106
 
    1  for the state housing finance agency  or  the  medical  care  facilities
    2  finance  agency,  only  by  agreement  with  the commissioner of general
    3  services, except that in the case a mental  hygiene  facility  owned  or
    4  leased by a voluntary agency that is to be designed, constructed, recon-
    5  structed,  rehabilitated and improved under any lease, sublease, loan or
    6  other financing agreement entered into with such  voluntary  agency,  or
    7  jointly  with  such  voluntary agency and one or more voluntary agencies
    8  that operate such facility the same may be designed, constructed, recon-
    9  structed, rehabilitated and improved by  such  voluntary  agencies,  and
   10  except that:
   11    (a) if the commissioner of general services for any reason declines to
   12  enter into an agreement with the corporation for such purpose; or
   13    (b)  if  the  commissioner  of general services fails to enter into an
   14  agreement with the corporation for such purpose within  forty-five  days
   15  after  receiving  notification  from the directors of the corporation of
   16  the work to be performed; or
   17    (c) if the commissioner of general services fails  to  advertise  such
   18  work  for bids within one year after entering into an agreement with the
   19  corporation for the performance of such work; or
   20    (d) if the estimated expense of any such work is less than  ten  thou-
   21  sand  dollars,  the corporation may construct, reconstruct, rehabilitate
   22  and improve a mental  hygiene  facility  by  its  own  employees  or  by
   23  contract awarded pursuant to paragraph [g] f of this subdivision.
   24    (ii) The corporation, with the approval of the director of the budget,
   25  may  construct, reconstruct, rehabilitate and improve a community mental
   26  health and retardation facility by its own employees, by agreement  with
   27  a  city  or  county or with any state department or agency authorized to
   28  perform such work, or by contract awarded pursuant to paragraph [g] f of
   29  this subdivision. All contracts awarded by a city or county on behalf of
   30  the corporation shall be awarded pursuant to paragraph g of this  subdi-
   31  vision,  notwithstanding  any provision of any general, special or local
   32  law or any charter.
   33    c. In the event that the commissioner of general services enters  into
   34  an  agreement with the corporation for the construction, reconstruction,
   35  rehabilitation or improvement of a mental  hygiene  facility,  the  work
   36  required  shall be performed in accordance with the terms of such agree-
   37  ment and in accordance with the provisions of paragraphs d and e of this
   38  subdivision, either by employees of the office of general services or by
   39  contract or contracts awarded pursuant to the public buildings law,  the
   40  public works law and the state finance law.
   41    d. No contract for the construction, reconstruction, rehabilitation or
   42  improvement of a mental hygiene facility shall be awarded by any letting
   43  agency  unless  (i)  the  appropriate  commissioner  or  director of the
   44  department shall have separately approved the architectural concept  and
   45  the   detailed   plans   and  specifications  for  the  facility  to  be
   46  constructed, reconstructed,  rehabilitated  or  improved  and  (ii)  the
   47  directors of the corporation, whether as principals or as agents for the
   48  state  housing  finance  agency  or  the medical care facilities finance
   49  agency, shall have approved the proposed terms of such contract, includ-
   50  ing the detailed plans and specifications for the facility.    Provided,
   51  however, the corporation shall only enter into any lease, sublease, loan
   52  or  other  financing  agreement  with  a  voluntary agency under which a
   53  mental hygiene facility owned or leased by such a voluntary agency is to
   54  be designed,  acquired,  constructed,  reconstructed,  rehabilitated  or
   55  improved  when  the  appropriate  commissioner  or  director  shall have
   56  approved the plans for such a facility. The form  and  content  of  such
       S. 1406                            221                           A. 2106
 
    1  approval shall be approved by the division of budget however such agency
    2  approval  shall  allow  maximum access to financing for design, acquisi-
    3  tion, construction, reconstruction, rehabilitation and improvement,  and
    4  shall be timely to reduce the need for utilization of short term commer-
    5  cial  loans  by  voluntary  agencies for services eligible for financing
    6  under this program. The medical care facilities financing  agency  shall
    7  advise the director of the budget on the form of such approval.
    8    e.  Each contract for the construction, reconstruction, rehabilitation
    9  or improvement of a mental hygiene facility shall  include  a  provision
   10  that  the  architect who designed the facility, or an architect or engi-
   11  neer retained or employed specifically for the purpose  of  supervision,
   12  shall supervise the work to be performed through to completion and shall
   13  see  to  it  that  the materials furnished and the work performed are in
   14  accordance with the drawings, plans, specifications and contract  there-
   15  for.
   16    [f.  If the corporation is the letting agency, whether as principal or
   17  as agent for the state housing finance  agency,  the  directors  of  the
   18  corporation shall prepare separate specifications for, and solicit sepa-
   19  rate  and  independent  bids  on,  and  award, separate contracts on the
   20  subdivisions of work to be performed specified in  section  one  hundred
   21  thirty-five  of  the  state finance law, but the directors of the corpo-
   22  ration may in their discretion assign such contracts for supervision  to
   23  the successful bidder for the remaining work to be performed at the time
   24  the contracts for the particular mental hygiene facility are awarded.
   25    g.]  f.  All  contracts which are to be awarded pursuant to this para-
   26  graph shall be awarded by public letting in accordance with the  follow-
   27  ing  provisions,  notwithstanding  any contrary provision of section one
   28  hundred thirty-six, one hundred thirty-nine or one hundred forty of  the
   29  state finance law, except that in the discretion of the directors of the
   30  corporation,  a  contract  may be entered into for such purposes without
   31  public letting where the estimated expense thereof is no more than forty
   32  thousand dollars:
   33    (i) If contracts are to be publicly let, the directors of  the  corpo-
   34  ration shall advertise the invitation to bid in a newspaper published in
   35  the county of Albany and in such other newspapers as will be most likely
   36  in  their  opinion  to  give  adequate notice to contractors of the work
   37  required and of the invitation to  bid.  The  invitation  to  bid  shall
   38  contain  such information as the directors of the corporation shall deem
   39  appropriate and a statement  of  the  time  and  place  where  all  bids
   40  received pursuant to such notice will be publicly opened and read.
   41    (ii)  The  directors  of  the corporation shall not award any contract
   42  after public bidding except to the lowest bidder who in their opinion is
   43  qualified to perform the work required and is responsible and  reliable.
   44  The  directors  of the corporation may, however, reject any or all bids,
   45  again advertise for bids, or waive any informality  in  a  bid  if  they
   46  believe that the public interest will be promoted thereby. The directors
   47  of  the corporation may reject any bid if in their judgment the business
   48  and technical organization,  plant,  resources,  financial  standing  or
   49  business  experience  of  the  bidder,  compared  with  the  work  to be
   50  performed, justify such rejection.
   51    (iii) The invitation to bid and the  contract  awarded  shall  contain
   52  such  other  terms and conditions, and such provisions for penalties, as
   53  the directors of the corporation may deem desirable.
   54    (iv) The directors of the corporation  shall  require  such  deposits,
   55  bonds  and security in connection with the submission of bids, the award
   56  of contracts and the performance of work as they shall determine  to  be
       S. 1406                            222                           A. 2106
 
    1  in  the public interest and for the protection of the state and affected
    2  state agencies, including the corporation.
    3    [h.]  g.  The  directors of the corporation shall determine when minor
    4  work of construction, reconstruction, alteration or repair of any mental
    5  hygiene facility may be done by special order. Special orders  for  such
    6  work  shall be short-form contracts approved by the attorney general and
    7  by the comptroller. No work shall be done by special order in an  amount
    8  in  excess  of  twenty thousand dollars and a bond shall not be required
    9  for special orders. No work shall be done by special  order  unless  the
   10  directors have presented to the comptroller evidence that they have made
   11  a diligent effort to obtain competition sufficient to protect the inter-
   12  ests of the state prior to selecting the contractor to perform the work.
   13  Notwithstanding  the  provisions of paragraph [g] f of this subdivision,
   14  work done by special  order  under  this  paragraph  may  be  advertised
   15  through the regular public notification service of the office of general
   16  services  or the state register. At least five days shall elapse between
   17  the first publication of such public notice and the  date  so  specified
   18  for  the  public  opening  of bids. The directors may also authorize the
   19  corporation to enter into special order contracts using bids  advertised
   20  for,  received and opened by any office of the department, in compliance
   21  with this act and all other applicable  laws,  and  transmitted  to  the
   22  corporation. All payments on special orders shall be made on the certif-
   23  icate  of  the  directors of the corporation and audited and approved by
   24  the state comptroller. All special orders shall contain  a  clause  that
   25  the  special  order  shall only be deemed executory to the extent of the
   26  moneys available and no liability shall be incurred by the state  beyond
   27  the moneys available for the purpose.
   28    §  75.  Paragraph  (c) of section 4 of chapter 560 of the laws of 1980
   29  relating to authorizing the city of New York to adopt a waste management
   30  law is amended to read as follows:
   31    (c) [Every contract, lease or other agreement entered  into,  pursuant
   32  to  this  section,  by  the  city  of  New York for construction, recon-
   33  struction, rehabilitation or improvement of buildings for a solid  waste
   34  recovery  and  management  facility shall contain a provision that, when
   35  the entire cost of such work shall exceed fifty thousand dollars,  sepa-
   36  rate  specifications  shall be prepared for the following three subdivi-
   37  sions of work:
   38    (1) Plumbing and gas fitting;
   39    (2) Steam heating, hot water heating, ventilating and air conditioning
   40  apparatus; and
   41    (3) Electric wiring and standard illuminating fixtures.
   42    Such specifications shall be drawn to permit the letting  of  separate
   43  and  independent  contracts  by  the  developer  for each of these three
   44  subdivisions of work. The city of  New  York  may,  at  its  discretion,
   45  direct  that  such  specifications  include  minimum  qualifications for
   46  bidders with regard to licensing,  bonding  capacity,  minority  partic-
   47  ipation, and past performance on prior contracts. Every developer under-
   48  taking  the construction, reconstruction, rehabilitation, or improvement
   49  of the buildings of a  solid  waste  recovery  and  management  facility
   50  pursuant  to  the  provisions  of its contract with the city of New York
   51  shall let separate contracts to the lowest responsible  bidder  for  the
   52  three  subdivisions  of the above specified work, to any persons who are
   53  responsible and reliable bidders engaged in these classes of  work.  Any
   54  such  contracts  shall be contracts of the developer and not of the city
   55  of New York. The city of New York shall have no obligations  or  liabil-
   56  ities, whatsoever, thereunder. The developer shall have the responsibil-
       S. 1406                            223                           A. 2106
 
    1  ity  for  supervision  and  coordination  of  work  under  such separate
    2  contracts.]
    3    The  city of New York shall [also] have the right to reject any bidder
    4  not meeting the reasonable and justifiable qualifications  that  it  has
    5  established  for  bidders.  All  qualified  bidders engaged in the above
    6  specified work shall be entitled to bid and to receive, upon request,  a
    7  copy  of  the plans and specifications. All such bids shall be delivered
    8  to such city and be opened publicly at a stated time  and  place,  by  a
    9  designated municipal employee.
   10    Notwithstanding  any  law  or agreement that requires a bond or bonds,
   11  the city of New York shall in addition require, prior to the approval of
   12  any contract, lease, or agreement providing for the construction, recon-
   13  struction, rehabilitation, or improvement of any building  for  a  solid
   14  waste  recovery  and  management  facility, that the developer, if other
   15  than the city of New York, furnish a bond guaranteeing prompt payment of
   16  moneys that are due to all persons furnishing labor or materials in  the
   17  conduct  of  work  provided for in such contract, lease, or other agree-
   18  ment. A copy of such payment bond shall be kept by the city and shall be
   19  open to public inspection.
   20    [The requirements to subcontract, contained herein, shall not apply to
   21  the system to be used for receiving,  processing,  handling  or  storing
   22  waste,  or  the products and by-products derived therefrom, or materials
   23  used in such processing or handling of the system and any  equipment  or
   24  property involving proprietary or trade secrets.]
   25    §  76.  Section 11 of chapter 795 of the laws of 1967, relating to the
   26  construction of boards of cooperative educational services buildings, is
   27  REPEALED.
   28    § 77. Subdivision 1 of section 11 of section 1 of chapter 174  of  the
   29  laws  of  1968, constituting the New York state urban development corpo-
   30  ration act, is amended to read as follows:
   31    (1) Construction  contracts  let  by  [the  corporation  shall  be  in
   32  conformity  with  the applicable provisions of section one hundred thir-
   33  ty-five of the state finance law, provided, however,  that  construction
   34  contracts  let  by]  subsidiaries  of  the corporation which are housing
   35  companies shall be governed by the applicable provisions of the  private
   36  housing  finance  law[;  provided  further, however, that in the case of
   37  industrial projects, whenever  the  corporation  determines  that  trade
   38  secrets  or other confidential information about the prospective project
   39  occupant's business operations, products, processes or designs would  be
   40  revealed  by  public  bidding,  the  requirements of section one hundred
   41  thirty-five of the state finance law with respect to public bidding  may
   42  be waived. In such event, separate specifications shall be prepared for,
   43  and  separate  and  independent contracts shall be entered into, for the
   44  following three subdivisions of work to be performed: (a)  plumbing  and
   45  gas  fitting;  (b) steam heating, hot water heating, ventilating and air
   46  conditioning apparatus; and (c) electric wiring and standard  illuminat-
   47  ing fixtures].
   48    § 78. Section 9 of chapter 892 of the laws of 1971 amending the public
   49  authorities  law  relating to construction by the dormitory authority is
   50  REPEALED.
   51    § 79. Section 21 of chapter 464 of the  laws  of  1972,  amending  the
   52  public  authorities  law and other laws relating to providing facilities
   53  for community colleges and the powers of the state university  trustees,
   54  is REPEALED.
       S. 1406                            224                           A. 2106
 
    1    §  80.  Section  29  of  chapter 337 of the laws of 1972, amending the
    2  correction law and other laws relating to facilities for the  department
    3  of correctional services, is REPEALED.
    4    §  81.  Subdivision 3 of section 6 of chapter 345 of the laws of 1968,
    5  relating to establishing  a  United  Nations  development  district  and
    6  formulating   and  administering  plans  for  the  development  of  such
    7  district, as amended by chapter 623 of the laws of 1971, is  amended  to
    8  read as follows:
    9    (3)  to  undertake or cause its subsidiary corporation or corporations
   10  to undertake, or otherwise to have undertaken on behalf  of  the  corpo-
   11  ration  the execution of a development plan or of a portion thereof, and
   12  the financing, acquisition, construction,  rehabilitation,  improvement,
   13  operation  and  management  of any project or portion thereof, including
   14  attendant relocation facilities, [provided however, that  all  contracts
   15  let  by  the  corporation or by a subsidiary (rather than a sponsor or a
   16  person, firm or corporation acting as sponsor in lieu of the corporation
   17  or its subsidiaries) for the erection, construction,  or  alteration  of
   18  buildings  shall be let in conformity with the provisions of section one
   19  hundred thirty-five of the state finance law,]
   20    § 82. Subdivision 5 of section 5 of chapter 35 of  the  laws  of  1979
   21  relating  to appropriating funds to the New York state urban development
   22  corporation is amended to read as follows:
   23    (5) Any contract for  construction  with  respect  to  the  convention
   24  center  shall  be  awarded  in conformity with the provisions of section
   25  eleven of the New York state urban  development  corporation  act,  [and
   26  section  one hundred thirty-five of the state finance law as referred to
   27  therein,] provided that the determination by the development corporation
   28  of whether a bidder is "responsible" shall  include  (but  need  not  be
   29  limited to) consideration, as set forth in the bidding documents, of the
   30  financial  and  organizational capacity of the bidder in relation to the
   31  magnitude of the contract, the record of performance of  the  bidder  on
   32  previous work, the record of the bidder in complying with existing labor
   33  standards,  maintaining harmonious labor relations and recognizing state
   34  and federally approved apprentice training programs, and the ability and
   35  willingness of the bidder to provide, and  to  commit  to  provide,  for
   36  meaningful  participation  of minority group persons and business enter-
   37  prise in the conduct of the work.
   38    § 83. Subdivision 5 of section 4 of chapter 735 of the  laws  of  1979
   39  relating   to   providing   for   construction   of  an  American  stock
   40  exchange/office facility in New  York  county  is  amended  to  read  as
   41  follows:
   42    (5) Any contract for construction with respect to the exchange facili-
   43  ty  shall be awarded in conformity with the provisions of section eleven
   44  of the UDC act, [and  section  one  hundred  thirty-five  of  the  state
   45  finance  law as referred to therein,] provided that the determination by
   46  the development corporation of whether a bidder is  "responsible"  shall
   47  include  (but need not be limited to) consideration, as set forth in the
   48  bidding documents, of the financial and organizational capacity  of  the
   49  bidder  in  relation  to  the  magnitude  of the contract, the record of
   50  performance of the bidder on previous work, the record of the bidder  in
   51  complying  with  existing  labor standards, maintaining harmonious labor
   52  relations and recognizing state and federally approved apprentice train-
   53  ing programs, and the ability and willingness of the bidder to  provide,
   54  and to commit to provide, for meaningful participation of minority group
   55  persons and business enterprise in the conduct of the work.
       S. 1406                            225                           A. 2106
 
    1    §  84.  Section  23  of  chapter  825 of the laws of 1987 amending the
    2  public authorities law and  other  laws  relating  to  construction  and
    3  improvement of court facilities is amended to read as follows:
    4    §  23. Notwithstanding the provisions of any other general, special or
    5  local law, charter or ordinance or any provision herein to the contrary,
    6  all  contracts  for  construction,  reconstruction,  rehabilitation   or
    7  improvements  undertaken pursuant to the provisions of this act shall be
    8  subject to the provisions of [sections one hundred one and] section  one
    9  hundred three of the general municipal law.
   10    §  85.  The provisions of sections sixteen through eighty-four of this
   11  act shall control all contracts advertised or solicited for  bid  on  or
   12  after  the  effective  date  of this act under the provisions of any law
   13  requiring contracts to be let pursuant to provisions of law  amended  by
   14  this act.
   15    §  86.  Subdivisions (a) and (b) of section 4545 of the civil practice
   16  law and rules are REPEALED and subdivisions (c) and (d)  are  relettered
   17  subdivisions (a) and (b).
   18    §  87.  Subdivision  (a) of section 4545 of the civil practice law and
   19  rules, as added by chapter 220 of the laws of 1986 and as relettered  by
   20  section eighty-six of this act, is amended to read as follows:
   21    (a) Actions for personal injury, injury to property or wrongful death.
   22  In  any action brought to recover damages for personal injury, injury to
   23  property or wrongful death, where the plaintiff seeks to recover for the
   24  cost of medical care, dental care, podiatric  care,  custodial  care  or
   25  rehabilitation  services,  loss  of  earnings  or  other  economic loss,
   26  evidence shall be admissible for consideration by the court to establish
   27  that any such past or future cost or expense was or will,  with  reason-
   28  able  certainty,  be  replaced or indemnified, in whole or in part, from
   29  any collateral source such as insurance  (except  for  life  insurance),
   30  social security (except those benefits provided under title XVIII of the
   31  social security act), workers' compensation or employee benefit programs
   32  (except  such  collateral  sources  entitled by law to liens against any
   33  recovery of the plaintiff). If the court finds that  any  such  cost  or
   34  expense  was  or  will, with reasonable certainty, be replaced or indem-
   35  nified from any collateral source, it shall reduce  the  amount  of  the
   36  award by such finding, minus an amount equal to the premiums paid by the
   37  plaintiff  for such benefits for the two-year period immediately preced-
   38  ing the accrual of such action and minus an amount equal to the project-
   39  ed future cost to the plaintiff of maintaining such benefits.  In  order
   40  to find that any future cost or expense will, with reasonable certainty,
   41  be replaced or indemnified by the collateral source, the court must find
   42  that  the plaintiff is legally entitled to the continued receipt of such
   43  collateral source, pursuant  to  a  contract  or  otherwise  enforceable
   44  agreement,  subject  only to the continued payment of a premium and such
   45  other financial obligations as may be required by such agreement.
   46    § 88. Subdivisions (d) and (e) of rule 4111 of the civil practice  law
   47  and rules are REPEALED.
   48    §  89.  Subdivision  (f)  of  rule  4111 of the civil practice law and
   49  rules, as amended by chapter 100 of the laws of 1994, is amended to read
   50  as follows:
   51    [(f)] (d) Itemized verdict in certain actions. In an action brought to
   52  recover damages for personal injury,  injury  to  property  or  wrongful
   53  death,  [which is not subject to subdivisions (d) and (e) of this rule,]
   54  the court shall instruct the jury that  if  the  jury  finds  a  verdict
   55  awarding  damages,  it  shall  in  its  verdict  specify  the applicable
   56  elements of special and general damages upon which the  award  is  based
       S. 1406                            226                           A. 2106
 
    1  and  the  amount assigned to each element including, but not limited to,
    2  medical expenses, dental expenses, podiatric expenses, loss of earnings,
    3  impairment of earning ability, and  pain  and  suffering.  Each  element
    4  shall  be  further  itemized  into  amounts  intended  to compensate for
    5  damages that have  been  incurred  prior  to  the  verdict  and  amounts
    6  intended  to  compensate  for  damages  to be incurred in the future. In
    7  itemizing amounts intended to compensate for future  damages,  the  jury
    8  shall set forth the period of years over which such amounts are intended
    9  to provide compensation.  In actions in which article fifty-A or fifty-B
   10  of  this  chapter  applies, in computing said damages, the jury shall be
   11  instructed to award the full amount of future  damages,  as  calculated,
   12  without reduction to present value.
   13    § 90. Intentionally omitted.
   14    §  91.  Subdivision  (b) of section 4213 of the civil practice law and
   15  rules, as separately amended by chapters 485 and  682  of  the  laws  of
   16  1986, is amended to read as follows:
   17    (b)  Form  of  decision.   The decision of the court may be oral or in
   18  writing and shall state the facts it deems  essential.  In  [a  medical,
   19  dental  or podiatric malpractice action or in an action against a public
   20  employer or a public employee who is subject  to  indemnification  by  a
   21  public  employer  with respect to such action or both, as such terms are
   22  defined in subdivision (b) of section forty-five hundred forty-five, for
   23  personal injury or wrongful death arising out of an injury sustained  by
   24  a public employee while acting within the scope of his public employment
   25  or  duties,  and  in]  any [other] action brought to recover damages for
   26  personal injury, injury to  property,  or  wrongful  death,  a  decision
   27  awarding  damages  shall  specify the applicable elements of special and
   28  general damages upon which the award is based and the amount assigned to
   29  each element, including but not  limited  to  medical  expenses,  dental
   30  expenses,  podiatric  expenses,  loss of earnings, impairment of earning
   31  ability, and pain and suffering. In  [a  medical,  dental  or  podiatric
   32  malpractice  action, and in] any [other] such action [brought to recover
   33  damages for personal injury, injury to  property,  or  wrongful  death],
   34  each  element shall be further itemized into amounts intended to compen-
   35  sate for damages which have been incurred  prior  to  the  decision  and
   36  amounts intended to compensate for damages to be incurred in the future.
   37  In  itemizing  amounts  intended  to  compensate for future damages, the
   38  court shall set forth the period of years over which  such  amounts  are
   39  intended  to  provide compensation. In computing said damages, the court
   40  shall award the full amount of future damages,  as  calculated,  without
   41  reduction to present value.
   42    §  92.  Subdivision  1 of section 3-a of the general municipal law, as
   43  amended by chapter 4 of the laws of 1991, is amended to read as follows:
   44    1. Except as provided in subdivisions  two,  four  and  five  of  this
   45  section, the rate of interest to be paid by a municipal corporation upon
   46  any  judgment  or  accrued claim against the municipal corporation shall
   47  [not exceed nine per centum per annum] be calculated at a rate equal  to
   48  the  weekly  average  one  year  constant  maturity  Treasury  yield, as
   49  published by the Board of Governors of the Federal Reserve  System,  for
   50  the calendar week preceding the date of the entry of the judgment award-
   51  ing  damages.  In no event, however, shall a municipal corporation pay a
   52  rate of interest on any judgment or accrued claim  more  than  nine  per
   53  centum per annum.
   54    §  93.    Subdivision  5  of section 157 of the public housing law, as
   55  amended by chapter 681 of the laws  of  1982,  is  amended  to  read  as
   56  follows:
       S. 1406                            227                           A. 2106
 
    1    5.  The  rate of interest to be paid by an authority upon any judgment
    2  or accrued claim against the authority shall [not exceed nine per centum
    3  per annum] be calculated at a rate equal to the weekly average one  year
    4  constant maturity Treasury yield, as published by the Board of Governors
    5  of  the Federal Reserve System, for the calendar week preceding the date
    6  of the entry of the judgment awarding damages.  In  no  event,  however,
    7  shall  an  authority  pay  a rate of interest on any judgment or accrued
    8  claim more than nine per centum per annum.
    9    § 94. Section 16 of the state finance law, as amended by  chapter  681
   10  of the laws of 1982, is amended to read as follows:
   11    §  16.  Rate  of  interest on judgments and accrued claims against the
   12  state.  The rate of interest to be paid by the state upon  any  judgment
   13  or accrued claim against the state shall [not exceed nine per centum per
   14  annum]  be  calculated  at  a  rate equal to the weekly average one year
   15  constant maturity Treasury yield, as published by the Board of Governors
   16  of the Federal Reserve System, for the calendar week preceding the  date
   17  of  the  entry  of  the judgment awarding damages. In no event, however,
   18  shall the state pay a rate of interest on any judgment or accrued  claim
   19  more than nine per centum per annum.
   20    §  95.  Section  1 of chapter 585 of the laws of 1939, relating to the
   21  rate of interest to be paid by certain public  corporations  upon  judg-
   22  ments and accrued claims, as amended by chapter 681 of the laws of 1982,
   23  is amended to read as follows:
   24    Section  1.  The  rate  of interest to be paid by a public corporation
   25  upon any judgment or accrued claim against the public corporation  shall
   26  [not  exceed nine per centum per annum] be calculated at a rate equal to
   27  the weekly  average  one  year  constant  maturity  Treasury  yield,  as
   28  published  by  the Board of Governors of the Federal Reserve System, for
   29  the calendar week preceding the date of the entry of the judgment award-
   30  ing damages. In no event, however, shall a public corporation pay a rate
   31  of interest on any judgment or accrued claim more than nine  per  centum
   32  per annum.
   33    The  term  "public  corporation"  as  used  in this act shall mean and
   34  include  every  corporation  created  for  the  construction  of  public
   35  improvements,  other than a county, city, town, village, school district
   36  or fire district or an improvement district established  in  a  town  or
   37  towns,  and  possessing  both the power to contract indebtedness and the
   38  power to collect rentals, charges, rates or fees for services or facili-
   39  ties furnished or supplied.
   40    § 96. Section 3813 of the education law is amended  by  adding  a  new
   41  subdivision 5 to read as follows:
   42    5. Exclusive jurisdiction is hereby conferred upon the court of claims
   43  to  hear  and  determine  the  claims  of  any person against any of the
   44  parties named in this section or the claims of any  person  against  any
   45  teacher  or  member  of the supervisory or administrative staff or other
   46  officers and employees of such parties that arise out of  their  employ-
   47  ment,  for  damages  for personal injury, injury to property of wrongful
   48  death, and to make awards and render  judgments  therefor.  Such  claims
   49  shall  be  subject  to  the  court  of claims act and shall be heard and
   50  determined in the manner provided in such act for the  determination  of
   51  claims  against the state; provided, however, that (i) the provisions of
   52  section twenty-a of the court of claims act  shall  not  apply  to  such
   53  claims, (ii) notwithstanding any inconsistent provisions of the court of
   54  claims  act,  the provisions of sections fifty-e, fifty-h and fifty-i of
   55  the general municipal law shall apply to  such  claims,  and  (iii)  all
   56  references  in  the court of claims act to the attorney general shall be
       S. 1406                            228                           A. 2106
 
    1  deemed to refer to the chief legal officer of the governing body of  the
    2  district  or  school  with  respect  to  which the claim is made and all
    3  references in such act to the comptroller shall be deemed  to  refer  to
    4  the  officer  or body having power to adjust and pay claims against such
    5  district or school.
    6    § 97. Subdivision 1 of section 6224 of the education law,  as  amended
    7  by chapter 711 of the laws of 1982, is amended to read as follows:
    8    1.  (a) The provisions of sections fifty-e, fifty-h and fifty-i of the
    9  general municipal law shall, notwithstanding any inconsistent  provision
   10  of law, continue to apply to actions and proceedings based on a cause of
   11  action  involving a community college of the city university of New York
   12  or an officer, agent, servant or  employee  of  such  community  college
   13  acting in the course of his or her employment. [The] Except as otherwise
   14  provided  in paragraph (b) of this subdivision, the provisions of subdi-
   15  visions four, five and six of this  section  shall  not  apply  to  such
   16  actions and proceedings.
   17    (b)  Exclusive  jurisdiction  is  hereby  conferred  upon the court of
   18  claims to hear and determine the claims of any person against a communi-
   19  ty college of the city university of New York  or  any  officer,  agent,
   20  servant or employee of a community college of the city university of New
   21  York that arise out of their employment for damages for personal injury,
   22  injury to property or wrongful death and to make awards and render judg-
   23  ments  therefor. Such claims shall be subject to the court of claims act
   24  and shall be heard and determined in the manner provided in such act for
   25  the determination of claims against the state; provided,  however,  that
   26  (i)  the provisions of section twenty-a of the court of claims act shall
   27  not  apply  to  such  claims,  (ii)  notwithstanding  any   inconsistent
   28  provisions  of  the  court  of  claims  act,  the provisions of sections
   29  fifty-e, fifty-h and fifty-i of the general municipal law shall apply to
   30  such claims, and (iii) all references in the court of claims act to  the
   31  attorney  general  and  the  comptroller shall be deemed to refer to the
   32  corporation counsel of the city of New York and the comptroller  of  the
   33  city  of  New  York, respectively. All awards and judgments against such
   34  college arising out of such claims shall be paid in the manner  provided
   35  by  law  for the payment of awards and judgments against the city of New
   36  York.
   37    § 98. Section 569-a of the public authorities law is amended by adding
   38  a new subdivision 3 to read as follows:
   39    3. Exclusive jurisdiction is hereby conferred upon the court of claims
   40  to hear and determine the claims of any person against the authority  or
   41  the claims of any person against the officers and employees thereof that
   42  arise  out  of their employment, for damages for personal injury, injury
   43  to property or wrongful death and to make awards  and  render  judgments
   44  therefor.  Such  claims  shall be subject to the court of claims act and
   45  shall be heard and determined in the manner provided in such act for the
   46  determination of claims against the state; provided, however,  that  (i)
   47  the  provisions of section twenty-a of the court of claims act shall not
   48  apply to such claims, (ii) notwithstanding any  inconsistent  provisions
   49  of  the  court of claims act, the provisions of this section shall apply
   50  to such claims, and (iii) all references in the court of claims  act  to
   51  the attorney general and the comptroller shall be deemed to refer to the
   52  general  counsel  of  the authority and the authority, respectively. All
   53  awards and judgments against the authority arising out  of  such  claims
   54  shall  be  paid  in  the manner provided by law out of the monies of the
   55  authority.
       S. 1406                            229                           A. 2106
 
    1    § 99. Section 1212 of the public authorities law is amended by  adding
    2  a new subdivision 7 to read as follows:
    3    7. Exclusive jurisdiction is hereby conferred upon the court of claims
    4  to  hear and determine the claims of any person against the authority or
    5  the claims of any person against the officers and employees thereof that
    6  arise out of their employment, for damages for personal  injury,  injury
    7  to  property  or  wrongful death and to make awards and render judgments
    8  therefor. Such claims shall be subject to the court of  claims  act  and
    9  shall be heard and determined in the manner provided in such act for the
   10  determination  of  claims against the state; provided, however, that (i)
   11  the provisions of section twenty-a of the court of claims act shall  not
   12  apply  to  such claims, (ii) notwithstanding any inconsistent provisions
   13  of the court of claims act, the provisions of this section  shall  apply
   14  to  such  claims, and (iii) all references in the court of claims act to
   15  the attorney general and the comptroller shall be deemed to refer to the
   16  general counsel of the authority and the  authority,  respectively.  All
   17  awards  and  judgments  against the authority arising out of such claims
   18  shall be paid in the manner provided by law out of  the  monies  of  the
   19  authority.
   20    § 100. Section 1276 of the public authorities law is amended by adding
   21  a new subdivision 7 to read as follows:
   22    7. Exclusive jurisdiction is hereby conferred upon the court of claims
   23  to  hear and determine the claims of any person against the authority or
   24  the claims of any person against the officers and employees thereof that
   25  arise out of their employment, for damages for personal  injury,  injury
   26  to  property  or  wrongful death and to make awards and render judgments
   27  therefor. Such claims shall be subject to the court of  claims  act  and
   28  shall be heard and determined in the manner provided in such act for the
   29  determination  of  claims against the state; provided, however, that (i)
   30  the provisions of section twenty-a of the court of claims act shall  not
   31  apply  to  such claims, (ii) notwithstanding any inconsistent provisions
   32  of the court of claims act, the provisions of this section  shall  apply
   33  to  such  claims, and (iii) all references in the court of claims act to
   34  the attorney general and the comptroller shall be deemed to refer to the
   35  general counsel of the authority and the  authority,  respectively.  All
   36  awards  and  judgments  against the authority arising out of such claims
   37  shall be paid in the manner provided by law out of  the  monies  of  the
   38  authority.
   39    §  101. Section 402-a of the public housing law is amended by adding a
   40  new subdivision 16 to read as follows:
   41    16. Exclusive jurisdiction is  hereby  conferred  upon  the  court  of
   42  claims  to  hear  and determine the claims of any person against the New
   43  York city housing authority or the claims  of  any  person  against  the
   44  employees  thereof  that  arise out of their employment, for damages for
   45  personal injury, injury to property or wrongful death and to make awards
   46  and render judgments therefor. Such claims shall be subject to the court
   47  of claims act and shall be heard and determined in the  manner  provided
   48  in such act for the determination of claims against the state; provided,
   49  however,  that  (i)  the  provisions of section twenty-a of the court of
   50  claims act shall not apply to  such  claims,  (ii)  notwithstanding  any
   51  inconsistent  provisions  of  the court of claims act, the provisions of
   52  this section shall apply to such claims, and (iii) all references in the
   53  court of claims act to the attorney general and the comptroller shall be
   54  deemed to refer to the general counsel of  the  New  York  city  housing
   55  authority  and  the  New  York city housing authority, respectively. All
   56  awards and judgments against the New York city housing authority arising
       S. 1406                            230                           A. 2106
 
    1  out of such claims shall be paid in the manner provided by  law  out  of
    2  the monies of the authority.
    3    §  102.   Section 618 of the racing, pari-mutuel wagering and breeding
    4  law is amended by adding a new subdivision 7 to read as follows:
    5    7. Exclusive jurisdiction is hereby conferred upon the court of claims
    6  to hear and determine the claims of any person against  the  corporation
    7  or the claims of any person against the employees thereof that arise out
    8  of their employment, for damages for personal injury, injury to property
    9  or wrongful death and to make awards and render judgments therefor. Such
   10  claims  shall  be  subject to the court of claims act and shall be heard
   11  and determined in the manner provided in such act for the  determination
   12  of  claims against the state; provided, however, that (i) the provisions
   13  of section twenty-a of the court of claims act shall not apply  to  such
   14  claims, (ii) notwithstanding any inconsistent provisions of the court of
   15  claims  act,  the provisions of this section shall apply to such claims,
   16  and (iii) all references in the court of  claims  act  to  the  attorney
   17  general  and the comptroller shall be deemed to refer to the corporation
   18  counsel of the city of New York and the corporation,  respectively.  All
   19  awards  and judgments against the corporation arising out of such claims
   20  shall be paid in the manner provided by law out of  the  monies  of  the
   21  corporation.
   22    §  103.  Section  20 of section 1 of chapter 1016 of the laws of 1969,
   23  constituting the New York city health and hospitals corporation act,  is
   24  amended by adding a new subdivision 2-a to read as follows:
   25    2-a.  Exclusive  jurisdiction  is  hereby  conferred upon the court of
   26  claims to hear and determine the claims of any person against the corpo-
   27  ration or the claims of any person against the  officers  and  employees
   28  thereof  that  arise  out  of their employment, for damages for personal
   29  injury, injury to property or wrongful death  and  to  make  awards  and
   30  render judgements therefor. Such claims shall be subject to the court of
   31  claims  act shall be heard and determined in the manner provided in such
   32  act for the determination of claims against the state; provided,  howev-
   33  er,  that  (i) the provisions of section 20-a of the court of claims act
   34  shall not apply to such claims, (ii)  notwithstanding  any  inconsistent
   35  provisions  of  the  court of claims act, the provisions of this section
   36  shall apply to such claims, and (iii) all references  in  the  court  of
   37  claims  act  to the attorney general and the comptroller shall be deemed
   38  to refer to the corporation counsel of the city  of  New  York  and  the
   39  comptroller of the city of New York, respectively. All awards and judge-
   40  ments  against  the corporation arising out of such claims shall be paid
   41  in the manner provided by law for the payment of awards  and  judgements
   42  against the city of New York.
   43    §  104.  The state finance law is amended by adding a new section 98-b
   44  to read as follows:
   45    § 98-b. State and local government short-term  investment  pool.    1.
   46  Definitions. As used in this section, the following terms shall have the
   47  following meanings:
   48    (a) "Comptroller" means the comptroller of the state of New York.
   49    (b)   "Local  government"  means  any  municipal  corporation,  school
   50  district, board of cooperative  educational  services,  district  corpo-
   51  ration,  special  improvement  district  governed by a separate board of
   52  commissioners, industrial development  agency  or  authority,  a  public
   53  library, or a public benefit corporation constituted entirely of members
   54  appointed by local officials.
   55    (c)  "Local government moneys" means moneys of any local government in
   56  the custody of the chief fiscal officer or other officer having  custody
       S. 1406                            231                           A. 2106
 
    1  of  moneys  of  the local government not required for immediate expendi-
    2  ture; provided that the investment of such moneys is not  restricted  by
    3  contract  or  by  statute  in  a  manner  that is inconsistent with this
    4  section.
    5    2.  There is hereby established in the custody of the comptroller "the
    6  state and local government  short-term  investment  pool",  which  shall
    7  consist  of  moneys invested by local governments in accordance with the
    8  provisions of this section and of state moneys  invested  by  the  comp-
    9  troller  in  accordance  with  section  ninety-eight-a  of this article.
   10  Moneys held and invested in the state and  local  government  short-term
   11  investment  pool  shall  be invested and made available to the state and
   12  local governments, respectively, in accordance  with  this  section  and
   13  regulations promulgated by the comptroller.
   14    3.  Any  local government may invest in the state and local government
   15  short-term investment pool, pursuant  to  a  local  law,  ordinance,  or
   16  resolution which shall authorize the chief fiscal officer or other offi-
   17  cer having custody of the local government moneys, but not more than one
   18  such  officer,  to  invest such moneys in the state and local government
   19  short-term investment pool.   The local law,  ordinance,  or  resolution
   20  shall  be  filed with the division of investments and cash management of
   21  the office of the comptroller, in accordance with this section and regu-
   22  lations promulgated by the comptroller. The authorization  for  a  local
   23  government  to  invest  in  the  state  and  local government short-term
   24  investment pool shall continue in force from the  date  of  such  filing
   25  until  the  comptroller shall receive written notification of the termi-
   26  nation of authorization, in the same  form  as  the  authorization.  The
   27  comptroller  may  refuse  to accept investments into the fund if, in the
   28  judgment of the comptroller, such investments would adversely affect the
   29  portfolio of the state and local government short-term investment pool.
   30    4. The comptroller shall adopt such  regulations  as  the  comptroller
   31  deems appropriate to implement the provisions of this section. The comp-
   32  troller  shall,  by  regulation, prescribe the mechanisms and procedures
   33  for deposits and withdrawals, including the  number  of  business  days'
   34  notice,  not  to exceed five, that is necessary prior to withdrawal. The
   35  comptroller may,  by  resolution,  limit  the  aggregate  dollar  amount
   36  invested by each local government.
   37    5.  The  comptroller  shall invest any and all moneys in the state and
   38  local government short-term investment  pool,  including  local  govern-
   39  ments'  moneys,  in  investments  permitted  for the investment of state
   40  funds pursuant to section ninety-eight-a of this article and in  accord-
   41  ance with this section and regulations promulgated by the comptroller.
   42    6.  At least monthly, the comptroller shall credit the interest earned
   43  from investments to the account of the state and each  local  government
   44  unit.  The  comptroller  may deduct from the total earnings derived from
   45  investments an amount equal to  the  administrative  costs  incurred  in
   46  carrying  out the provisions of this section, not to exceed ten one-hun-
   47  dredths of one  percent  per  annum  of  the  average  daily  investment
   48  balance.
   49    7.  Within  ninety  days  after the end of each state fiscal year, the
   50  comptroller shall report to the governor, to the legislature, and to all
   51  participating local governments the results of management of  the  state
   52  and  local government short-term investment pool. In addition, the comp-
   53  troller shall issue periodic reports, at least  on  a  quarterly  basis,
   54  providing information as to the investments and results of the state and
   55  local short-term investment pool.
       S. 1406                            232                           A. 2106
 
    1    §  105. Section 11 of the general municipal law is amended by adding a
    2  new subdivision 8 to read as follows:
    3    8.  Notwithstanding  the  provisions of any general, special, or local
    4  law to the contrary, in addition to any investments otherwise authorized
    5  by law, the governing board of any local government  may  authorize  the
    6  chief  fiscal  officer or other officer having custody of moneys of such
    7  local government to deposit  and  invest  local  government  moneys  not
    8  required  for  immediate  expenditure  in the state and local government
    9  short-term investment pool, in accordance  with  provisions  of  section
   10  ninety-eight-b of the state finance law. The aggregate amount of invest-
   11  ments  made  pursuant  to  this subdivision shall not exceed twenty-five
   12  percent of the investments made pursuant to this section.
   13    § 106. The public authorities law is amended by adding a  new  section
   14  2927 to read as follows:
   15    §  2927. Funds to certain public authorities and public benefit corpo-
   16  rations; deposit and investment in state and local government short-term
   17  investment pool. In addition to any investments otherwise authorized  by
   18  law,  the  governing board of any public benefit corporation constituted
   19  entirely of members appointed by local officials may authorize the chief
   20  fiscal officer or other officer having custody of moneys of such  corpo-
   21  ration, but not more than one such officer, to deposit and invest moneys
   22  of  the  corporation not required for immediate expenditure in the state
   23  and local government short-term investment pool, in accordance with  the
   24  provisions  of section ninety-eight-b of the state finance law; provided
   25  that the investment of such moneys is  not  restricted  by  contract  or
   26  statute  in  a manner that is inconsistent with such section. The aggre-
   27  gate amount of investments made  pursuant  to  this  section  shall  not
   28  exceed twenty-five percent of the investments made by the corporation.
   29    §  107.  The  opening  paragraph  and subparagraph 1 of paragraph a of
   30  subdivision 3 of section 11 of the general municipal law, as amended  by
   31  chapter 130 of the laws of 1998, are amended to read as follows:
   32    Investments  pursuant  to  this section may also be made in any of the
   33  following:
   34    (1) (i) obligations of the United States of America or in  obligations
   35  guaranteed by agencies of the United States of America where the payment
   36  of principal and interest are guaranteed by the United States of America
   37  [or in];
   38    (ii) obligations of the state of New York[, or];
   39    (iii) with the approval of the state comptroller in obligations issued
   40  pursuant to section 24.00 or 25.00 of the local finance law by any muni-
   41  cipality, school district or district corporation other than the munici-
   42  pality,  school  district  or district corporation investing such moneys
   43  pursuant to this paragraph[.];
   44    (iv) obligations of any corporation organized under the  laws  of  any
   45  state  in  the  United  States maturing within sixty days; provided that
   46  such obligations receive the highest rating of  two  independent  rating
   47  services designated by the state comptroller and that the issuer of such
   48  obligations  has  maintained  such ratings on similar obligations during
   49  the preceding year; provided, however, that no  more  than  one  hundred
   50  million  dollars or ten percent of investments pursuant to this section,
   51  whichever is less, may be invested in such obligations of any one corpo-
   52  ration; and
   53    (v) bankers' acceptances maturing within sixty days which are eligible
   54  for purchase in the open market by federal reserve banks and which  have
   55  been  accepted  by a bank or trust company, which is organized under the
   56  laws of the United States or of any state thereof and which is a  member
       S. 1406                            233                           A. 2106
 
    1  of  the federal reserve system and whose short-term obligations meet the
    2  criteria outlined in clause (iv) of this subparagraph; provided,  howev-
    3  er,  that  no  more  than  one hundred million dollars or ten percent of
    4  investments pursuant to this section, whichever is less, may be invested
    5  in  such  bankers'  acceptances  of  any  one bank or trust company. The
    6  aggregate amount of investments made pursuant to this clause and  clause
    7  (iv)  of this subparagraph may not exceed ten percent of the investments
    8  made pursuant to this section.
    9    In addition, moneys  in  any  reserve  fund  established  pursuant  to
   10  section  six-c,  six-d, six-e, six-f, six-g, six-h, six-j, six-k, six-l,
   11  six-m, or six-n of this article may be invested in  obligations  of  the
   12  municipality,  school  district,  fire district, or district corporation
   13  which has established the reserve fund, or, in the  case  of  a  capital
   14  reserve  fund  established  for  a  town or county improvement district,
   15  obligations of the town or  county  issued  for  the  purposes  of  such
   16  district.
   17    §  108.  Section  2  of  chapter  130 of the laws of 1998 amending the
   18  general municipal law relating to temporary investments by local govern-
   19  ments, as amended by chapter 124 of the laws of 2002, is amended to read
   20  as follows:
   21    § 2. This act shall take effect June 30, 1998 [and shall expire and be
   22  deemed repealed on July 1, 2005,  provided,  however,  that  investments
   23  purchased prior to the expiration of this act pursuant to the provisions
   24  of  paragraph  a of subdivision 3 of section 11 of the general municipal
   25  law, as designated and amended by section one of this act, shall contin-
   26  ue to be subject to the conditions contained in such subdivision to  the
   27  same  extent  as  they had been subject thereto prior to such expiration
   28  and repeal].
   29    § 109. The general municipal law is amended by adding  a  new  section
   30  207-r to read as follows:
   31    § 207-r. Police protection at special events. A municipality may adopt
   32  a local law to provide that the person or persons responsible for either
   33  operating,  conducting,  promoting, or sponsoring any event, exhibition,
   34  or contest to be held in the municipality at which a price for admission
   35  or attendance is to be charged may be billed for the costs  incurred  by
   36  the  municipality  as  a  result  of:   (1) its scheduling of additional
   37  police personnel, if any, beyond the normal schedule of uniformed  offi-
   38  cers  who  would have otherwise been on duty had the need for additional
   39  personnel not arisen; and (2) its  need  for  any  rental  of  equipment
   40  related to the event, exhibition, or contest.  The local law shall iden-
   41  tify the type or types of events, exhibitions, or contests for which the
   42  operator,  conductor,  promoter, or sponsor of the event, exhibition, or
   43  contest may be charged for additional  police  personnel  and  equipment
   44  rental that is either requested by the operator, conductor, promoter, or
   45  sponsor  or determined to be necessary by the head of the police depart-
   46  ment or a designee.  The local law may also provide that  the  operator,
   47  conductor, promoter, or sponsor of the event, exhibition, or contest for
   48  which  protection  is  either  requested or required shall complete such
   49  forms or applications, available from the office of the municipal  clerk
   50  or  from  the  police  department,  as far in advance of the event as is
   51  practicable so as to provide the information  deemed  necessary  by  the
   52  head of the police department to permit a determination as to whether or
   53  not  any  additional  police  personnel  shall be scheduled for work and
   54  whether or not any rental of equipment related to the event, exhibition,
   55  or contest is necessary.  Within fifteen days of the filing of the form,
   56  the head of the police department shall provide the operator, conductor,
       S. 1406                            234                           A. 2106
 
    1  promoter, or sponsor of the event,  exhibition,  or  contest  for  which
    2  protection  is  either  requested  or  required  with an estimate of the
    3  anticipated cost of scheduling additional police personnel, if any,  and
    4  of  the  anticipated  cost  of  equipment  rental, if any. The operator,
    5  conductor, promoter, or sponsor of the  event,  exhibition,  or  contest
    6  shall  have the right to obtain from the police department any record or
    7  document that relates to the usual scheduling of uniformed  officers  on
    8  the  day  or  days of the week that the activity is proposed to be held.
    9  The local law shall not apply to any corporation formed under  the  not-
   10  for-profit  corporation  law; provided, however, that such a corporation
   11  is hereby authorized to agree to make a payment  to  a  municipality  in
   12  recognition  of  any police services provided.  The operator, conductor,
   13  promoter, or sponsor of the event, exhibition, or contest shall pay  all
   14  or  a  portion of the estimated cost of additional police protection and
   15  equipment rental prior to the commencement of the event.
   16    § 110.  Subdivision 4 of section 209-b of the general  municipal  law,
   17  as  amended  by  chapter  718 of the laws of 1958, is amended to read as
   18  follows:
   19    4. Fees and charges [prohibited] authorized.   Emergency  and  general
   20  ambulance  service  authorized  pursuant  to this section [shall] may be
   21  furnished without cost to the person served; provided, however, that the
   22  authorities having control of a fire department or fire company,  except
   23  in  cities of one million or more, who have authorized such fire depart-
   24  ment or fire company to provide such service or services  may  establish
   25  fees and charges for services rendered.  Should the governing board of a
   26  municipality  elect  to  establish  a  schedule  of fees and charges for
   27  services rendered, an annual report summarizing billings made and reven-
   28  ues received shall be made to the state comptroller in  accordance  with
   29  the  provisions of section thirty of this chapter. The state comptroller
   30  shall compile the  information  received.  For  any  such  municipality,
   31  records  shall  be maintained of:   (a) the schedule of fees and charges
   32  adopted; (b) the number of calls which caused a bill  to  be  generated;
   33  (c)  the  amount  charged for such calls; and (d) the amount of revenues
   34  received.  The state comptroller must compile and maintain, on an annual
   35  basis, a list of the information received and make  such  list  publicly
   36  available.  Such authorities may formulate rules and regulations for the
   37  collection  thereof.  The acceptance by any [fireman] firefighter of any
   38  personal remuneration or gratuity, directly or indirectly, from a person
   39  served shall be a ground for [his] expulsion or suspension as  a  member
   40  of the fire department or fire company.
   41    §  111.  Paragraph  a  of  section  11.00  of the local finance law is
   42  amended by adding a new subdivision 96-a to read as follows:
   43    96-a. Payment of contributions to the New York state and local  police
   44  and  fire  retirement  system  to  provide  additional pension benefits,
   45  pursuant to section three hundred eighty-four-e of  the  retirement  and
   46  social  security  law,  the lesser of ten years or the time remaining as
   47  the payment period under such statute.
   48    § 112. Paragraph a of section  11.00  of  the  local  finance  law  is
   49  amended by adding a new subdivision 96-b to read as follows:
   50    96-b. Payment for a retirement incentive program adopted in accordance
   51  with  the  provisions of part A of chapter sixty-nine of the laws of two
   52  thousand two, five years.
   53    § 113. Subdivision d of section 17 of the retirement and social  secu-
   54  rity  law,  as  amended by chapter 33 of the laws of 1986, is amended to
   55  read as follows:
       S. 1406                            235                           A. 2106
 
    1    d. If payment of the full amount of such obligations is  not  made  by
    2  the  date  required by subdivision c of this section, interest at a rate
    3  determined in accordance with the provisions of section sixteen of  this
    4  article  shall commence to run against the unpaid balance thereof on the
    5  first day after the date required by said subdivision c.  Such outstand-
    6  ing  obligations  shall  be paid, with the required interest, within the
    7  participating employer's next two fiscal years.
    8    § 114. Subdivision d of section 317 of the retirement and social secu-
    9  rity law, as amended by chapter 33 of the laws of 1986,  is  amended  to
   10  read as follows:
   11    d.  If  payment  of the full amount of such obligations is not made by
   12  the date required by subdivision c of this section, interest at  a  rate
   13  determined  in  accordance  with the provisions of section three hundred
   14  sixteen of this article shall commence to run against the unpaid balance
   15  thereof on the first day after the date required by said subdivision  c.
   16  Such  outstanding obligations shall be paid, with the required interest,
   17  within the participating employer's next two fiscal years.
   18    § 115. Subdivisions 10 and 10-a of section 2556 of the education  law,
   19  subdivision  10 as added by chapter 861 of the laws of 1953 and subdivi-
   20  sion 10-a as amended by chapter 613 of the laws of 1985, are amended  to
   21  read as follows:
   22    10. [The] Except in a city having a population of one million or more,
   23  which  shall be governed by section twenty-five hundred ninety-h of this
   24  title, all other provisions of state  and  local  law  to  the  contrary
   25  notwithstanding,  the  board  of  education  shall let all contracts for
   26  public work and all purchase contracts to the lowest responsible  bidder
   27  after  advertisement  for  bids where so required by section one hundred
   28  three of the general municipal law.
   29    10-a. In a city having a population of one million  or  more,  if  the
   30  several parts of the work or labor to be done and/or the supplies, mate-
   31  rials  and  equipment to be furnished shall together involve an expendi-
   32  ture of not more than [fifteen] twenty-five thousand dollars,  the  same
   33  may  be  procured  on  order  awarded [to the lowest responsible bidder]
   34  pursuant to section twenty-five hundred ninety-h of this title upon bids
   35  submitted without public advertisement under such regulations  as  shall
   36  be  made  by the [board of education] chancellor. Purchases of two thou-
   37  sand five hundred [fifty] dollars or less may be made  without  competi-
   38  tion.    Anything  in  subdivision  ten  of  this  section  or any other
   39  provision of state or local law to  the  contrary  notwithstanding,  the
   40  board  of  education  may  make  awards  of  contract or public work and
   41  purchase contracts to the lowest responsible bidder utilizing a  reverse
   42  auction  procedure. The term "reverse auction procedure" is defined as a
   43  purchasing process conducted by the board of education,  a  third  party
   44  under  contract  with the board of education, or through the state elec-
   45  tronic procurement  system,  in  which  bidders  compete  by  submitting
   46  unsealed  electronic  bids  to  provide goods and services at the lowest
   47  price in an open and fully interactive environment via the internet.
   48    § 116. Paragraph (f) of subdivision 1 of section 109-b of the  general
   49  municipal law, as amended by chapter 258 of the laws of 1994, is amended
   50  to read as follows:
   51    (f) Functions performed by a governing board under this section shall,
   52  in  the city of New York, be performed by the mayor and comptroller, and
   53  the approvals of  the  mayor  and  the  comptroller  of  any  agreement,
   54  contract,  instrument,  arrangement, or transaction contemplated by this
   55  section shall be the only approvals required therefor,  subject  to  the
   56  provisions of the New York state financial emergency act for the city of
       S. 1406                            236                           A. 2106
 
    1  New  York,  except for installment purchase contracts by the city school
    2  district of the city of New York to  acquire  computers  and  peripheral
    3  equipment  and  supplies,  including,  but  not limited to printers, for
    4  which  functions performed by a governing board under this section shall
    5  be performed by the chancellor of the said city school district, and the
    6  approvals of the said chancellor of any agreement, contract, instrument,
    7  arrangement, or transaction contemplated by this section  shall  be  the
    8  only  approvals  required therefor, subject to the provisions of the New
    9  York state financial emergency act for the city of New York.
   10    § 117. Subdivisions (a) and (e) of section 81 of chapter  413  of  the
   11  laws  of  1991 amending the local finance law and other laws relating to
   12  providing relief to local governments for certain mandated programs  and
   13  services are REPEALED.
   14    § 118. Section 103 of the general municipal law is amended by adding a
   15  new subdivision 1-b to read as follows:
   16    1-b.  (a)  Political  subdivisions  or  districts  may, by resolution,
   17  authorize the receipt of bids in an electronic  format  in  addition  to
   18  other  authorized  bid formats; provided, however, that under no circum-
   19  stances may bidding be limited to an electronic format.
   20    (b) Bids submitted in an electronic format shall be transmitted by any
   21  bidding entity to the  receiving  device  designated  by  the  political
   22  subdivision or district pursuant to the provisions of article one of the
   23  state technology law and such rules, regulations, and guidelines promul-
   24  gated and developed by the office for technology pursuant to section one
   25  hundred three of the state technology law.
   26    (c)  The timely submission of an electronic bid shall be in compliance
   27  with instructions provided in the advertisement for bids or the specifi-
   28  cations and shall be the responsibility of any bidder choosing to submit
   29  a bid in electronic format. No political subdivision or  district  shall
   30  incur any liability from delays or interruptions in the receiving device
   31  designated for the submission and receipt of electronic bids.
   32    §  119.  Subdivision 2 of section 103 of the general municipal law, as
   33  amended by chapter 296 of the laws  of  1958,  is  amended  to  read  as
   34  follows:
   35    2.   Advertisement for bids shall be published in the official newspa-
   36  per or newspapers, if any, or otherwise in  a  newspaper  or  newspapers
   37  designated  for such purpose.  Such advertisement shall contain a state-
   38  ment of the time when and place where all bids received pursuant to such
   39  notice will be publicly opened and read,  and  the  designation  of  the
   40  receiving device if the political subdivision or district has authorized
   41  the receipt of bids in an electronic format. Such board or agency may by
   42  resolution  designate  any  officer  or employee to open the bids at the
   43  time and place specified in the notice.   Such  designee  shall  make  a
   44  record of such bids in such form and detail as the board or agency shall
   45  prescribe and present the same at the next regular or special meeting of
   46  such  board  or agency.   All bids received shall be publicly opened and
   47  read at the time and place so specified. At least five days shall elapse
   48  between the first publication of such  advertisement  and  the  date  so
   49  specified for the opening and reading of bids.
   50    §  120.  Paragraph  a  of  section  58.00 of the local finance law, as
   51  amended by chapter 346 of the laws  of  1996,  is  amended  to  read  as
   52  follows:
   53    a.  There  shall  be  published, at least once, not less than five nor
   54  more than thirty days before the date  fixed  for  the  public  sale  of
   55  bonds,  a  notice of such public sale or a summary thereof in accordance
   56  with one of the following methods: (1)  the  notice  of  sale  shall  be
       S. 1406                            237                           A. 2106
 
    1  published  in  any  financial  newspaper published and circulated in the
    2  city of New York which the state  comptroller,  in  the  rule  or  order
    3  referred  to  in  paragraph  d  of  section 57.00 of this chapter, shall
    4  designate  for  such publication; (2) the notice of sale shall be circu-
    5  larized in such manner as the state comptroller shall prescribe in  such
    6  rule  or  order  and  shall  be published in any newspaper or newspapers
    7  which the  finance  board  of  the  municipality,  school  district,  or
    8  district corporation may designate for such purpose; or (3) (i) a summa-
    9  ry  of the notice of sale shall be published in both the financial news-
   10  paper published and circulated in the city of New York which  the  state
   11  comptroller has designated in the rule or order referred to in paragraph
   12  d of section 57.00 of this chapter, and (ii) any newspaper or newspapers
   13  which  the  finance  board  of  the  municipality,  school  district, or
   14  district [or district] corporation may designate  for  such  purpose.  A
   15  summary of the notice of sale shall at a minimum contain the name of the
   16  issuer,  the amount, date, and maturities of the bonds, the frequency of
   17  interest payments, the place where bids will  be  received,  the  desig-
   18  nation of the receiving device if the finance board of the issuing muni-
   19  cipality,  school  district,  or district corporation has authorized the
   20  receipt of bids in an electronic format, the time and date for the open-
   21  ing of the bids, including circumstances under which such time and  date
   22  may  be  changed  in  accordance  with law, the method of award [and], a
   23  procedure for promptly obtaining the complete notice  of  sale  and  any
   24  preliminary official statement prepared in connection with the sale, and
   25  such other information as the state comptroller may prescribe by rule or
   26  order.
   27    §  121.  Subdivision  1  of  paragraph b of section 58.00 of the local
   28  finance law, as amended by chapter 239 of the laws of 1971,  is  amended
   29  to read as follows:
   30    1.  The  place  where  bids  will  be received and considered, and the
   31  designation of the receiving device if the finance board of the  issuing
   32  municipality,  school  district,  or district corporation has authorized
   33  the receipt of bids in an electronic format.
   34    § 122. Section 58.00 of the local finance law is amended by  adding  a
   35  new paragraph f to read as follows:
   36    f. For purposes of this section and section 59.00 of this title:
   37    1.  Political  subdivisions or districts may, by resolution, authorize
   38  the receipt of bids in an electronic format in addition to other author-
   39  ized bid formats; provided, however, that  under  no  circumstances  may
   40  bidding be limited to an electronic format.
   41    2.  Bids submitted in an electronic format shall be transmitted by any
   42  bidding entity to the  receiving  device  designated  by  the  political
   43  subdivision or district pursuant to the provisions of article one of the
   44  state technology law and such rules, regulations, and guidelines promul-
   45  gated and developed by the office for technology pursuant to section one
   46  hundred three of the state technology law.
   47    3.  The  timely submission of an electronic bid shall be in compliance
   48  with instructions provided in the advertisement for bids or the specifi-
   49  cations and shall be the responsibility of any bidder choosing to submit
   50  a bid in electronic format. No political subdivision or  district  shall
   51  incur any liability from delays or interruptions in the receiving device
   52  designated for the submission and receipt of electronic bids.
   53    §  123.  Paragraph  a  of  section  59.00 of the local finance law, as
   54  amended by chapter 179 of the laws  of  1996,  is  amended  to  read  as
   55  follows:
       S. 1406                            238                           A. 2106
 
    1    a.  All  bids shall be opened publicly at the time and place stated in
    2  the notice of sale, and not before, and  shall  be  publicly  announced.
    3  Prior  to  the  time fixed for such public opening of bids, a sealed bid
    4  may be amended by a bidder by delivery  to  the  official  to  whom  the
    5  sealed bid was delivered of a sealed amendment to such bid. No bid shall
    6  be  amended by a telegraphic or telephonic communication, except that an
    7  electronic bid may be amended  in  the  same  manner  in  which  it  was
    8  originally  submitted. The bonds shall be awarded to the bidder offering
    9  the lowest interest  cost  to  the  municipality,  school  district,  or
   10  district  corporation,  without taking into consideration any adjustment
   11  to be made in accordance with subdivision two of paragraph c of  section
   12  58.00  of  this article, as computed in accordance with the net interest
   13  cost method or the actuarial or true interest cost method.
   14    § 124. The general municipal law is amended by adding  a  new  article
   15  4-A to read as follows:
   16                                  ARTICLE 4-A
   17                         MUNICIPAL FISCAL STABILITY
   18  Section 60.   Definitions.
   19          61.   Review of financial information; request for response.
   20          62.   Level one; early warning notification.
   21          63.   Indicators  of  fiscal  stress;  level two; municipalities
   22                experiencing fiscal stress.
   23          64.   Indicators of fiscal stress; level  three;  municipalities
   24                experiencing continued fiscal stress.
   25          65.  Indicators  of  fiscal  stress;  level four; municipalities
   26                experiencing advanced fiscal stress.
   27          66. New York state board of local government  deficit  financing
   28                authorization.
   29          67.   Fiscal recovery financing.
   30          68.   Inconsistency with other laws.
   31          69.   Notice of benchmarks and additional criteria.
   32          69-a. Reports.
   33          69-b. No duplication.
   34    § 60. Definitions. As used in this article:
   35    1.  "Municipality"  shall  mean  any  county,  town,  village,  school
   36  district, or city other than:  (a) a city having  a  population  of  one
   37  million or more;
   38    (b)  the  city  of Troy, so long as an emergency period, as defined in
   39  chapter seven hundred twenty-one of the laws of nineteen  hundred  nine-
   40  ty-four, as amended, is in effect; and
   41    (c)  the  county  of  Nassau,  so long as an interim finance period or
   42  control period, as defined in chapter eighty-four of  the  laws  of  two
   43  thousand, is in effect.
   44    2. "Comptroller" shall mean the New York state comptroller.
   45    3. "Annual financial report" shall mean the report of a municipality's
   46  financial  condition  required  to  be  made annually to the comptroller
   47  pursuant to section thirty of this chapter.
   48    4. "Agency" shall mean the state  of  New  York  municipal  bond  bank
   49  agency, the corporate governmental agency created by section twenty-four
   50  hundred thirty-three of the public  authorities law.
   51    5.  "Tentative budget" shall mean the tentative budget prepared pursu-
   52  ant to section three hundred fifty-four of the county law,  section  one
   53  hundred  six  of  the town law, or section 5-504 of the village law, the
   54  annual estimate proposed pursuant to section seventy-five of the  second
   55  class  cities  law,  or  similar  document prepared pursuant to general,
   56  special, or local law.
       S. 1406                            239                           A. 2106
 
    1    6. "Benchmark" shall mean a standard or reference point  based  on  an
    2  analysis  of  other municipalities of similar size and character, state-
    3  wide or national or  similar  commonly  accepted  factors  in  municipal
    4  finance.
    5    §  61.  Review  of  financial  information; request for response.   In
    6  furtherance of the purposes  of  this  article,  the  comptroller  shall
    7  establish  a  program  for the review of annual financial report data of
    8  municipalities, and such other related data and information  as  may  be
    9  deemed  relevant.    The  comptroller  may request the submission by any
   10  municipality of additional information or data for this  purpose.    The
   11  comptroller  shall  consult  with  municipal  officials, as appropriate,
   12  during the review process. Based  upon  the  comptroller's  review,  the
   13  comptroller,  in  such  manner  as he or she deems appropriate, may make
   14  recommendations to the chief executive officer and chief fiscal  officer
   15  of the municipality as to actions which may be taken by the municipality
   16  in connection with the fiscal affairs of the municipality, including but
   17  not limited to recommendations that any municipal officer or employee of
   18  the  municipality,  or  his or her designee, attend a relevant municipal
   19  training course conducted or approved  by  the  comptroller.  The  comp-
   20  troller  may  request  that  the chief executive officer or chief fiscal
   21  officer respond to the comptroller's recommendations, in such manner  as
   22  the  comptroller  deems  appropriate,  by  indicating  actions  taken or
   23  proposed to be taken or, if the chief executive  officer  or  the  chief
   24  fiscal  officer  indicates that no action is warranted or is to be taken
   25  or proposed, by providing an explanation of the reasons therefor.
   26    § 62. Level one; early warning notification.  1. Based upon the  comp-
   27  troller's  review of annual financial report data, and other appropriate
   28  data and information pursuant to section sixty-one of this article,  the
   29  comptroller  may identify those municipalities that both (a) have failed
   30  to timely provide additional information or data requested by the  comp-
   31  troller  or  have  failed to sufficiently respond to any recommendations
   32  made by the comptroller pursuant to section sixty-one  of  this  article
   33  and  (b) the comptroller believes fit within any of the following crite-
   34  ria:
   35    (i) The municipality, in  the  last  completed  fiscal  year,  had  an
   36  unplanned  operating  deficit  in  a major operating fund in excess of a
   37  benchmark as may be specified for purposes  of  this  section,  and  for
   38  which  notice  pursuant  to  section sixty-nine of this article has been
   39  provided, by the comptroller, and an unappropriated fund  deficit  in  a
   40  major  operating  fund  in excess of a benchmark as may be specified for
   41  purposes of this section, and  for  which  notice  pursuant  to  section
   42  sixty-nine of this article has been provided, by the comptroller.
   43    (ii) The municipality, in its last completed fiscal year, had an unap-
   44  propriated  fund deficit in a major operating fund in excess of a bench-
   45  mark as may be specified for purposes of this  section,  and  for  which
   46  notice pursuant to section sixty-nine of this article has been provided,
   47  by  the  comptroller, and had a ratio of aggregated cash and investments
   48  to average monthly expenditures below a benchmark as  may  be  specified
   49  for  purposes  of this section, and for which notice pursuant to section
   50  sixty-nine of this article has been provided, by the comptroller.
   51    (iii) The municipality, in its last completed fiscal year, had a ratio
   52  of non-recurring revenues (as may be defined for this purpose,  and  for
   53  which  notice  pursuant  to  section sixty-nine of this article has been
   54  provided, by the comptroller) used to  fund  recurring  expenditures  to
   55  total  expenditures  in  excess  of  a benchmark as may be specified for
       S. 1406                            240                           A. 2106
 
    1  purposes of this section, and  for  which  notice  pursuant  to  section
    2  sixty-nine of this article has been provided, by the comptroller.
    3    (iv)  The  municipality meets such other commonly accepted criteria of
    4  susceptibility to fiscal stress as may be specified for purposes of this
    5  section, and for which notice pursuant to  section  sixty-nine  of  this
    6  article has been provided, by the comptroller.
    7    2.  For  each  municipality  identified pursuant to subdivision one of
    8  this section, the comptroller shall notify the chief  executive  officer
    9  and  chief  fiscal officer of the affected municipality that the munici-
   10  pality has fallen within the criteria set forth in  subdivision  one  of
   11  this  section  and  the  basis for such determination. Such notification
   12  shall be made in such manner as the comptroller deems appropriate. With-
   13  in fourteen days after receipt of such notification, the chief executive
   14  officer of the municipality shall respond to the comptroller's notifica-
   15  tion in such form as required by the comptroller, with a self-evaluation
   16  of the fiscal affairs of the municipality, addressing the matters raised
   17  in the notification. Such response shall include a statement  of  action
   18  taken  or proposed to be taken, or if no action is warranted or is to be
   19  taken or proposed, an explanation of the reasons therefor with copies of
   20  the self-evaluation response also sent to the director of the budget and
   21  secretary of state. After receipt and review of the response, the  comp-
   22  troller  may require any local official or employee of the municipality,
   23  or his or her designee, to attend a relevant municipal  training  course
   24  conducted or approved by the comptroller. The chief executive officer or
   25  chief fiscal officer of the municipality may request assistance from the
   26  comptroller in reviewing the matters raised in the comptroller's notifi-
   27  cation  and shall receive such assistance as may be reasonably necessary
   28  from any officer or employee of the state.
   29    § 63. Indicators of fiscal stress; level two;  municipalities  experi-
   30  encing  fiscal stress.  1. Based upon the comptroller's review of annual
   31  financial report data and other appropriate data and information  pursu-
   32  ant  to  section sixty-one of this article, the comptroller may identify
   33  those municipalities that both (a) have failed to timely  provide  addi-
   34  tional  information  or data requested by the comptroller or have failed
   35  to sufficiently respond to any recommendations made by  the  comptroller
   36  pursuant  to  section  sixty-one of this article and (b) the comptroller
   37  believes fit within any of the following criteria:
   38    (i) The municipality, in each of its last two completed fiscal  years,
   39  met any of the criteria set forth in section sixty-two of this article.
   40    (ii)  The  municipality, in its last completed fiscal year, met any of
   41  the criteria set forth under paragraph (a) of subdivision one of section
   42  sixty-four of this article.
   43    (iii) The municipality meets such other commonly accepted criteria  of
   44  stress  as  may be specified for purposes of this section, and for which
   45  notice pursuant to section sixty-nine of this article has been provided,
   46  by the comptroller.
   47    2. For each municipality identified pursuant  to  subdivision  one  of
   48  this  section,  the comptroller may determine that, in addition to being
   49  subject to such requirements of subdivision two of section sixty-two  of
   50  this  article  as  appropriate, the governing board of the municipality,
   51  until otherwise notified by the comptroller, shall, commencing with  the
   52  next succeeding fiscal year:
   53    (a) Adopt a four-year financial plan in such form as may be prescribed
   54  by the comptroller; and
       S. 1406                            241                           A. 2106
 
    1    (b)  Adopt  a capital program as described in section ninety-nine-g of
    2  this chapter, or in such other form as may  be  approved  by  the  comp-
    3  troller.
    4    3.  The  financial  and capital program shall be adopted no later than
    5  the last date on which the  municipality's  budget  is  required  to  be
    6  adopted, and may be modified from time to time. The financial plan shall
    7  provide that the operating and capital funds of the municipality will be
    8  in balance.
    9    4. The chief fiscal officer of the municipality shall, until otherwise
   10  notified  by  the comptroller, prepare and submit to the governing board
   11  of the municipality monthly financial reports, within fifteen days  from
   12  the end of each month, and prepare and submit to the comptroller, direc-
   13  tor  of  the budget, and secretary of state quarterly financial reports,
   14  within fifteen days from the end of each quarter, both in such  form  as
   15  may  be prescribed by the comptroller. In the event that the comptroller
   16  provides any recommendations regarding  any  reports  required  by  this
   17  subdivision,  the  chief  fiscal officer shall prepare a response to the
   18  recommendations of the comptroller in such  form  as  requested  by  the
   19  comptroller  with  copies provided to the director of the budget and the
   20  secretary of state.
   21    § 64. Indicators of fiscal stress; level three; municipalities experi-
   22  encing continued fiscal stress.  1. Based upon the comptroller's  review
   23  of  annual financial report data and other appropriate data and informa-
   24  tion pursuant to section sixty-one of this article, the comptroller  may
   25  identify  those  municipalities that the comptroller believes fit within
   26  any of the following criteria:
   27    (a) The municipality, in each of its last two completed fiscal  years,
   28  had at least one of the following:
   29    (i) An unplanned operating deficit in a major operating fund in excess
   30  of a benchmark as may be specified for purposes of this section, and for
   31  which  notice  pursuant  to  section sixty-nine of this article has been
   32  provided, by the comptroller, and unappropriated fund deficit in a major
   33  operating fund in excess of a benchmark as may be specified for purposes
   34  of this section, and for which notice pursuant to section sixty-nine  of
   35  this article has been provided, by the comptroller;
   36    (ii)  An  unappropriated  fund  deficit  in  a major operating fund in
   37  excess of a benchmark as may be specified for purposes of this  section,
   38  and  for which notice pursuant to section sixty-nine of this article has
   39  been provided, by the comptroller, and a ratio of  aggregated  cash  and
   40  investments to average monthly expenditures less than a benchmark as may
   41  be specified for purposes of this section, and for which notice pursuant
   42  to  section  sixty-nine  of this article has been provided, by the comp-
   43  troller;
   44    (iii) A ratio of non-recurring revenues (as may be  defined  for  this
   45  purpose,  and  for  which  notice pursuant to section sixty-nine of this
   46  article has been provided, by the comptroller) used  to  fund  recurring
   47  expenditures  to  total  expenditures in excess of a benchmark as may be
   48  specified for purposes of this section, and for which notice pursuant to
   49  section sixty-nine of this article  has  been  provided,  by  the  comp-
   50  troller.
   51    (b)  The municipality meets such additional commonly accepted criteria
   52  of fiscal stress as may be specified for purposes of this  section,  and
   53  for which notice pursuant to section sixty-nine of this article has been
   54  provided, by the comptroller;
       S. 1406                            242                           A. 2106
 
    1    (c) The benchmarks specified for this section shall be indicative of a
    2  greater  degree  of stress than those specified for section sixty-two of
    3  this article.
    4    2.  For  each  municipality  identified pursuant to subdivision one of
    5  this section, in addition to being subject to the requirements of subdi-
    6  vision two of section sixty-two and subdivisions two, three, and four of
    7  section sixty-three of this article, shall  meet  the  requirements  set
    8  forth in paragraph (a) of this subdivision.
    9    (a) The chief executive officer or individual or board responsible for
   10  the preparation of the tentative budget, until otherwise notified by the
   11  comptroller,  shall  annually  submit  the tentative budget for the next
   12  succeeding fiscal year, the proposed four-year financial  plan  and  the
   13  proposed capital program for review by the comptroller.  Copies of these
   14  materials shall be simultaneously provided to the director of the budget
   15  and the secretary of state.  Such tentative budget shall be submitted to
   16  the  comptroller within five days after its preparation, but in no event
   17  later than thirty days prior to the commencement of the next  succeeding
   18  fiscal  year. The proposed four-year financial plan and proposed capital
   19  program shall be submitted at the same time as the tentative budget.
   20    (b) The comptroller shall in each such  year  examine  such  tentative
   21  budget,  financial  plan,  and  capital program and make recommendations
   22  thereon to the municipality, within fifteen  days  of  receipt  thereof,
   23  with  copies  to  the director of the budget and the secretary of state.
   24  Such recommendations shall be made after  review  of  the  estimates  of
   25  revenues  and  expenditures of such municipality and such other informa-
   26  tion as the comptroller deems appropriate, and shall be  made  prior  to
   27  the  adoption  of  the final budget. At least forty-eight hours prior to
   28  the adoption of the final budget, the chief executive officer  or  indi-
   29  vidual  or board responsible for the preparation of the tentative budget
   30  of the municipality shall  prepare  a  written  response  to  the  comp-
   31  troller's recommendations.  Such response shall include, with respect to
   32  each  recommendation,  a  statement  of  action  taken or proposed to be
   33  taken, or if no action is warranted or is to be taken  or  proposed,  an
   34  explanation  of  the reasons therefor. The comptroller's recommendations
   35  and the response thereto shall be distributed  to  each  member  of  the
   36  governing  board,  filed  with  the clerk of the municipality and made a
   37  part of the budget document. When so filed, such  response  shall  be  a
   38  public record open to inspection by any interested person.  The response
   39  shall  also be delivered to the director of the budget, the secretary of
   40  state, the office of the  state  comptroller,  the  chairperson  of  the
   41  senate  finance  committee, and the chairperson of the assembly ways and
   42  means committee. In addition, notwithstanding the provisions of  section
   43  thirty  of  this  chapter, the chief fiscal officer of the municipality,
   44  until otherwise notified by the comptroller,  shall  submit  the  annual
   45  financial  report no later than thirty days from the close of the fiscal
   46  year for which the report  is  prepared;  provided  however,  that  such
   47  report  shall be prepared in accordance with generally accepted account-
   48  ing principles, and shall be audited by an independent entity  no  later
   49  than  ninety days from the close of the fiscal year for which the report
   50  is prepared.
   51    § 65. Indicators of fiscal stress; level four; municipalities  experi-
   52  encing  advanced  fiscal stress.  1. Based upon the comptroller's review
   53  of annual financial report data and other appropriate data and  informa-
   54  tion  pursuant  to  section  sixty-one  of this article, the comptroller
   55  shall identify those municipalities that fit within any of the following
   56  criteria:
       S. 1406                            243                           A. 2106
 
    1    (a) the municipality had unplanned  general  fund  operating  deficits
    2  greater than twenty percent of general fund expenditures as of the close
    3  of  each  of  its last two preceding fiscal years and had a deficit fund
    4  balance greater than twenty-five percent  of  the  expenditures  in  the
    5  general fund as of the close of its last preceding fiscal year;
    6    (b) twice, within a five-year period, the municipality either has been
    7  authorized pursuant to law to issue, and has adopted resolutions author-
    8  izing  the issuance of, bonds to finance a deficit, or directly or indi-
    9  rectly utilized the proceeds of debt issued by any public benefit corpo-
   10  ration  or  not-for-profit  corporation  to  fund  a  deficit   of   the
   11  municipality, or both;
   12    (c)  the  municipality,  due  to  conditions  of  fiscal  stress,  has
   13  defaulted in the payment of principal or interest on its bonds or notes,
   14  or such default is imminent;
   15    (d) the municipality, due to conditions of fiscal stress  or  negative
   16  credit  factors, is unable to sell its obligations in the general public
   17  market.
   18    2. For each municipality identified pursuant  to  subdivision  one  of
   19  this  section,  the comptroller shall notify the chief executive officer
   20  and the chief fiscal officer of  the  municipality  that  conditions  of
   21  advanced  fiscal stress have been identified and the basis of such iden-
   22  tification. Each  municipality  so  identified,  in  addition  to  being
   23  subject  to  the  requirements  of subdivision two of section sixty-two,
   24  subdivisions two, three, and four of  section  sixty-three,  subdivision
   25  two of section sixty-four, and subdivision eight of section sixty-six of
   26  this  article,  even  if  no bonds or notes have been issued, shall also
   27  meet the requirements set forth in subdivision three of this section.
   28    3. (a) Each year the municipality shall develop, and may from time  to
   29  time modify, with the approval of the comptroller, a four-year financial
   30  plan  covering the municipality.  Each such financial plan and financial
   31  plan modification shall conform to the requirements of this section  and
   32  shall  provide  that the operating and capital funds of the municipality
   33  will be in balance.
   34    (b) The financial plan shall be developed and approved, and  may  from
   35  time  to  time  be  modified,  with  the approval of the comptroller, in
   36  accordance with the following procedures:
   37    (i) Commencing with the  municipality's  fiscal  year  next  beginning
   38  after the comptroller shall have identified the municipality pursuant to
   39  subdivision  one of this section, and not later than fifty days prior to
   40  the beginning of such fiscal year and each fiscal year  thereafter,  the
   41  municipality  shall  prepare  and  submit  a financial plan to the comp-
   42  troller covering the four-year period beginning with such year. On  such
   43  dates,  the chief executive officer shall also submit to the comptroller
   44  the municipality's tentative budget for the ensuing fiscal  year  and  a
   45  certificate  of  the chief executive officer stating that such budget is
   46  consistent with the financial plan submitted therewith, that the  budget
   47  conforms  in  all respects to the requirements of this section, and that
   48  operation within the budget is feasible. Copies of these materials shall
   49  be simultaneously provided to the director of the budget and the  secre-
   50  tary of state.
   51    (ii) Not more than thirty days after submission of a financial plan or
   52  financial  plan modification, the comptroller shall determine whether or
   53  not the financial plan or financial plan modification  is  complete  and
   54  complies  with  the  provisions  of  subdivision one of this section and
   55  shall approve or disapprove the financial plan or financial plan modifi-
   56  cation in accordance with the provisions of this section.
       S. 1406                            244                           A. 2106
 
    1    (iii) If the comptroller determines that the financial plan or  finan-
    2  cial  plan  modification is complete and complies with the standards set
    3  forth in this section, the comptroller shall approve the financial  plan
    4  or  financial  plan  modification.  Upon  making such determination, the
    5  comptroller shall make a certification to the municipality setting forth
    6  revenue  estimates  approved  by the comptroller in accordance with such
    7  determination.
    8    (iv) The comptroller shall disapprove the financial plan  proposed  by
    9  the municipality if, in the judgment of the comptroller, such plan:
   10    (A) is incomplete;
   11    (B) fails to contain projections of revenues and expenditures that are
   12  based  on  reasonable  and  appropriate assumptions and methods of esti-
   13  mation;
   14    (C) fails to provide that  operations  of  the  municipality  will  be
   15  conducted  within  the  cash  resources available according to the comp-
   16  troller's revenue estimates; or
   17    (D) fails to comply with the provisions of this section.
   18    (v) In disapproving a financial plan or  financial  plan  modification
   19  proposed by the municipality, the comptroller may direct that the aggre-
   20  gate  expenditures  in  any  period be reduced to conform to the revenue
   21  estimates certified by the comptroller.
   22    (vi) In the event that the municipality shall, for any reason, fail to
   23  submit a financial plan, as required pursuant to this paragraph,  or  to
   24  adopt a financial plan approved by the comptroller, or in the event that
   25  the  comptroller  has  not, for any reason permitted under this section,
   26  approved a financial plan submitted by the municipality, the comptroller
   27  so finding, shall formulate and adopt a financial plan to  be  effective
   28  until the comptroller approves a financial plan submitted by the munici-
   29  pality.
   30    (vii)  After  the  initial adoption of the financial plan, the revenue
   31  estimates certified by the comptroller and the financial plan  shall  be
   32  regularly reexamined by the comptroller in consultation with the munici-
   33  pality  and  the municipality shall submit a financial plan modification
   34  in such detail and within  such  time  period  as  the  comptroller  may
   35  require. In the event of reductions in such revenue estimates, or in the
   36  event  the  municipality  shall expend funds at a rate that would exceed
   37  the aggregate expenditure limitation for the municipality prior  to  the
   38  expiration of the fiscal year, the municipality shall submit a financial
   39  plan  modification  to  effect  such adjustments in revenue estimates or
   40  reductions in total expenditures,  or  both,  as  may  be  necessary  to
   41  conform to such revised revenue estimates or aggregate expenditure limi-
   42  tations.    If,  within  a time period specified by the comptroller, the
   43  municipality fails to make such modifications after reductions in reven-
   44  ue estimates, or to provide a modified plan in detail  and  within  such
   45  time period required by the comptroller, the comptroller, after so find-
   46  ing, shall formulate and prescribe modifications to the financial plan.
   47    (viii)  The municipality may, from time to time, submit financial plan
   48  modifications for review  by  the  comptroller.  The  comptroller  shall
   49  approve  such  modifications unless, in the judgment of the comptroller,
   50  such modifications would constitute grounds for disapproval of a  finan-
   51  cial plan pursuant to subparagraph (iv) of this paragraph.
   52    (c)  The  financial  plan shall be in such form and shall contain such
   53  information for each year during which the financial plan is  in  effect
   54  as  the  comptroller may specify, and shall, in such detail as the comp-
   55  troller may from time to time prescribe, include statements of all esti-
       S. 1406                            245                           A. 2106
 
    1  mated revenues and of all expenditures and cash flow projections of  the
    2  municipality.
    3    (d) To the extent required by the comptroller, each financial plan and
    4  financial  plan modification shall contain such information with respect
    5  to the projected expenditures, revenues, and cash flows of one  or  more
    6  covered organizations. Notwithstanding any other provision of law limit-
    7  ing the authority of the municipality with respect to any covered organ-
    8  ization,  the  municipality,  in  the  preparation and submission of the
    9  financial plan and modifications thereof, shall (except for debt service
   10  or for other expenditures to  the  extent  that  such  expenditures  are
   11  required  by law) have the power to determine the aggregate expenditures
   12  to be allocated to any covered organization in the  financial  plan  and
   13  any  modification thereto. For this purpose, the term "covered organiza-
   14  tion" shall mean any governmental agency, public  authority,  or  public
   15  benefit corporation which receives or may receive moneys directly, indi-
   16  rectly or contingently (other than moneys received for the sale of goods
   17  or the rendering of services or the loan of moneys to the municipality),
   18  from the municipality.
   19    (e)  All  budgets  and  operations  of  the  municipality  shall be in
   20  conformance and compliance with the financial plan then in effect.
   21    4. Nothing contained in this section shall:
   22    (a) limit the right of the municipality to comply with the  provisions
   23  of  any  existing contract with or for the benefit of the holders of any
   24  bonds or notes of the municipality.
   25    (b) be construed to impair the right of employees to  organize  or  to
   26  bargain collectively.
   27    (c)  be construed to limit the power of the municipality to determine,
   28  from time to time, within available  funds  for  the  municipality,  the
   29  purposes  for  which expenditures are to be made by the municipality and
   30  the amounts of such expenditures, consistent with the aggregate expendi-
   31  tures then permitted under the financial plan for the municipality.
   32    5. The municipality shall not issue any further bonds or  bond  antic-
   33  ipation notes unless and until the affordability of such additional debt
   34  to  the  tax  base  supporting the indebtedness has been reviewed by the
   35  comptroller and the terms of the debt is approved  by  the  comptroller.
   36  The  municipality  shall  respond in writing to recommendations, if any,
   37  which the comptroller may make thereon. The comptroller may require  the
   38  chief  fiscal  officer  of  the municipality to prepare and submit (a) a
   39  plan which details the projected fiscal impact of the proposed  issuance
   40  of  bonds  or  bond anticipation notes including financing costs, future
   41  direct and indirect operating costs of, and any resulting revenues from,
   42  the object or purpose to be financed; and (b) an analysis of the afford-
   43  ability to the tax base supporting the debt  service  or  the  bonds  or
   44  notes.  The  comptroller may require such other information as the comp-
   45  troller deems necessary to complete the  review  of  affordability.  The
   46  comptroller  shall  make  any  recommendations and approve or disapprove
   47  within thirty days of receipt of all information necessary  to  complete
   48  the review of affordability.
   49    6. The municipality shall be subject to the provisions of this section
   50  until the date when (a) the comptroller shall determine, based on annual
   51  audited  financial  statements of the municipality that, for each of the
   52  three immediately preceding fiscal  years,  that  the  municipality  has
   53  adopted and adhered to budgets covering all expenditures, the results of
   54  which  did not show a deficit when reported in accordance with generally
   55  accepted accounting principles and (b) the  comptroller  and  the  chief
   56  fiscal officer of the municipality jointly shall certify that securities
       S. 1406                            246                           A. 2106
 
    1  sold,  if  any,  by  or  for  the benefit of the municipality during the
    2  fiscal year immediately preceding such date and the then current  fiscal
    3  year  in  the general public market satisfied the financing requirements
    4  of  the  municipality during such period and that there is a substantial
    5  likelihood that such securities can be sold in the general public market
    6  from such date through the end of the next  succeeding  fiscal  year  in
    7  amounts  which  will  satisfy  substantially all of the capital and cash
    8  flow financial requirements of the municipality during  such  period  in
    9  accordance with the financial plan then in effect.
   10    7.  Copies  of  all tentative and adopted budgets and financial plans,
   11  financial plan modifications,  capital  plans,  and  debt  affordability
   12  documents provided by the municipality and all recommendations, determi-
   13  nations,  approvals,  disapprovals,  and  any  other  written  materials
   14  provided by the comptroller pursuant to this section shall simultaneous-
   15  ly be provided to the director of the budget and the secretary of state.
   16    8. Notwithstanding any other provision of law, no  municipality  which
   17  is  subject  to this section shall file any petition authorized by title
   18  six-A of article two of the local finance law.
   19    § 66. New York state  board  of  local  government  deficit  financing
   20  authorization.   1. (a) There is hereby created the New York state board
   21  of local government deficit financing authorization,  which  shall  have
   22  and  exercise the powers and duties set forth in subdivision two of this
   23  section.
   24    (b)  Such board shall consist of five members as follows: one  of  the
   25  members  shall  be  appointed  by  the governor, who shall be the chair-
   26  person, one of the members shall be appointed by the temporary president
   27  of the senate, one of the members shall be appointed by the  speaker  of
   28  the  assembly,  one  of  the  members shall be appointed by the minority
   29  leader of the senate, and one of the members shall be appointed  by  the
   30  minority  leader  of  the  assembly.   Each member of the board shall be
   31  entitled to designate a representative to attend meetings of  the  board
   32  in  his  or her place, and to vote or otherwise act on his or her behalf
   33  in his or her absence.  Notice of such designation shall be furnished in
   34  writing to the board by the designating member. A  representative  shall
   35  serve at the pleasure of the designating member during the member's term
   36  of  office.  A representative shall not be authorized to delegate any of
   37  his or her duties or functions to any other person.
   38    (c) The members of the board shall serve for a term of one year.
   39    (d) Three members of the board shall  constitute  a  quorum,  and  the
   40  board shall have the power to act by a majority vote of the total number
   41  of members of the board without a vacancy.
   42    (e)  The members of the board shall not receive compensation but shall
   43  be reimbursed for actual and necessary expenses incurred in the perform-
   44  ance of their official duties.
   45    2. (a) The board shall have the power to  authorize  the  issuance  of
   46  bonds  by  a  municipality to fund a deficit existing as of the close of
   47  the last preceding fiscal year of the municipality or projected to exist
   48  as of the close of the current fiscal year of the municipality.
   49    (b) The board may authorize the issuance of bonds by a municipality to
   50  fund such a deficit only upon the request of the chief executive officer
   51  of a municipality concurred in by a majority of the total membership  of
   52  the legislative body for such municipality.
   53    (c)  Prior  to  the  board's authorizing the issuance of bonds to fund
   54  such a deficit pursuant to this subdivision, the comptroller shall first
   55  review and confirm the existence of the deficit, as well as certify  the
   56  amount  of  the deficit. As soon as practicable after the request to the
       S. 1406                            247                           A. 2106
 
    1  board is made, but in no event prior to the close of the current  fiscal
    2  year of the municipality in the case of a projected deficit, the munici-
    3  pality  shall  prepare  a  report  detailing the amount and cause of the
    4  deficit  and  submit  to  the comptroller such report, together with the
    5  municipality's independent audit report for its  last  completed  fiscal
    6  year,  if  any such audit report has been or is to be prepared, and such
    7  other information as the comptroller may deem necessary.  Within  thirty
    8  days  after  receiving  all necessary reports and information, the comp-
    9  troller shall: (i) perform  such  reviews  as  may  be  necessary;  (ii)
   10  confirm  the  existence and certify the amount of the deficit; and (iii)
   11  so notify the board.
   12    After the comptroller notifies the board of the existence of the defi-
   13  cit and the amount of the deficit as certified by the  comptroller,  the
   14  board  shall  then  make a determination whether or not to authorize the
   15  issuance of bonds by the municipality to fund  the  deficit.  In  making
   16  such a determination, the board may consider several factors, including,
   17  but not limited to:
   18    (i)  the  size  of  the  deficit as a percentage of the municipality's
   19  overall budget;
   20    (ii) the ability of the municipality to liquidate the deficit by means
   21  other than through the issuance of bonds;
   22    (iii) the existence of deficits in the past five years and the actions
   23  taken by the municipality to liquidate the deficit;
   24    (iv) other factors as deemed relevant by the board.
   25    (d) Once the board has  determined  that  a  municipality  shall  have
   26  authorization  for  the  issuance of bonds pursuant to this section, the
   27  board shall issue a written instrument authorizing the  municipality  to
   28  issue  bonds  in  the  amount  of the deficit, as certified by the comp-
   29  troller pursuant to paragraph (c) of this subdivision.  In  anticipation
   30  of  the issuance of such bonds, bond anticipation notes may be issued by
   31  the municipality.
   32    (e) It  is  hereby  determined  that  the  financing  of  deficits  as
   33  hereinbefore  described  is an object or purpose of the municipality for
   34  which indebtedness may be incurred, the period of probable usefulness of
   35  which is determined to be ten years, computed  from  the  date  of  such
   36  bonds  or  the date of the first bond anticipation note issued in antic-
   37  ipation of the sale of such bonds, whichever is earlier. The  board,  in
   38  authorizing  the  issuance of bonds, may prescribe a maximum maturity of
   39  the bonds, not to exceed ten years, computed from the date of such bonds
   40  or the date of the first bond anticipation note issued  in  anticipation
   41  of such bonds, whichever is earlier.
   42    (f)  The  board shall make a determination whether or not to authorize
   43  the issuance of bonds to finance a deficit pursuant to this  subdivision
   44  within thirty days of receiving the report from the comptroller pursuant
   45  to paragraph (c) of this subdivision.
   46    3.   A municipality that has requested authorization to issue bonds to
   47  fund a deficit pursuant to this  section  may  issue  bond  anticipation
   48  notes  for  a term not to exceed one year for the purpose of liquidating
   49  such deficit prior to a determination by  the  board  to  authorize  the
   50  issuance  of  bonds  by the municipality to fund the deficit pursuant to
   51  this section. In the event that bond anticipation notes are issued in an
   52  amount in excess of the amount of such deficit as certified by the comp-
   53  troller, such municipality shall, from  funds  other  than  proceeds  of
   54  bonds  or  bond anticipation notes, either redeem such bond anticipation
   55  notes in the amount by which the amount of such bond anticipation  notes
   56  exceeds  the  amount  of such deficit as certified by the comptroller or
       S. 1406                            248                           A. 2106
 
    1  deposit a sum equal to the amount by which such bond anticipation  notes
    2  exceed the amount of such deficit as certified by the comptroller into a
    3  reserve fund for the payment of bonded indebtedness established pursuant
    4  to  section  six-h  of this chapter. In the event that bond anticipation
    5  notes are issued and the board does not authorize the issuance of  bonds
    6  to  finance such deficit, such municipality shall, from funds other than
    7  the proceeds of bonds or bond anticipation notes, redeem the full amount
    8  of such bond anticipation notes.
    9    4.  The determination of the board whether or  not  to  authorize  the
   10  issuance of bonds pursuant to this section shall be deemed final and may
   11  only be subject to review by a proceeding commenced under article seven-
   12  ty-eight  of  the  civil  practice  law  and  rules;  provided that such
   13  proceeding is commenced within thirty days of the notice of the determi-
   14  nation given by certified mail return receipt requested  rendering  such
   15  final determination.
   16    5.  (a)  The  state  shall  save harmless and indemnify members of the
   17  board and its representatives, all of whom shall be deemed officers  and
   18  employees  of  the state for purposes of section seventeen of the public
   19  officers law, against any claim, demand, suit, or  judgment  arising  by
   20  reason  of  any  act  or  omission to act by such member of the board or
   21  representative occurring in the discharge of his or her duties and with-
   22  in the scope of his or her service on behalf of the board, including any
   23  claim, demand, suit, or judgment.   In the  event  of  any  such  claim,
   24  demand, suit, or judgment, a member of the board or representative shall
   25  be  saved  harmless  and indemnified, notwithstanding the limitations of
   26  subdivision one of section seventeen of the public officers law,  unless
   27  such  individual  is found by a final judicial determination not to have
   28  acted, in good faith, for a purpose which he or she reasonably  believed
   29  to  be  in  the best interest of the board or not to have had reasonable
   30  cause to believe that his or her conduct was lawful.
   31    (b) In connection with any such claim, demand, suit, or judgment,  any
   32  member  of  the  board  or representative shall be entitled to represen-
   33  tation by private counsel of his or her choice  in  any  civil  judicial
   34  proceeding  whenever  the attorney general determines, based upon his or
   35  her investigation and review of the facts and circumstances of the case,
   36  that representation by the attorney general would be inappropriate.  The
   37  attorney general shall notify the individual in writing of such determi-
   38  nation  that  the  individual  is  entitled to be represented by private
   39  counsel. The attorney general may require, as a condition to payment  of
   40  the fees and expenses of such representative, that appropriate groups of
   41  such  individuals  be represented by the same counsel. If the individual
   42  or groups of individuals is entitled to representation by private  coun-
   43  sel  under the provisions of this section, the attorney general shall so
   44  certify to the state comptroller. Reasonable attorneys' fees  and  liti-
   45  gation  expenses shall be paid by the state to such private counsel from
   46  time to time during the pendency of  the  civil  action  or  proceeding,
   47  subject  to  certification  that the individual is entitled to represen-
   48  tation under the terms and conditions of this section by the board, upon
   49  the audit and warrant of the state comptroller. The provisions  of  this
   50  subdivision  shall be in addition to and shall not supplant any indemni-
   51  fication or  other  benefits  heretofore  or  hereafter  conferred  upon
   52  members  of the board and representatives to the board by section seven-
   53  teen of the public officers law, by action of the board,  or  otherwise.
   54  The  provisions  of  this subdivision shall inure only to members of the
   55  board and representatives to the board, shall not  enlarge  or  diminish
       S. 1406                            249                           A. 2106
 
    1  the  rights  of  any other party, and shall not impair, limit, or modify
    2  the rights and obligations of any insurer under any policy of insurance.
    3    6. The comptroller shall provide all necessary assistance to the board
    4  including,  but  not limited to, staffing and support, so that the board
    5  may carry out its powers and duties pursuant to this section.
    6    7. To facilitate the marketing of bonds authorized pursuant to law  to
    7  be  issued  to fund a deficit, the municipality may, notwithstanding any
    8  limitation on the private sales of bonds provided by law and subject  to
    9  the  approval  of  the  comptroller  of the terms and conditions of such
   10  sales: (a) arrange for the underwriting of such bonds  at  private  sale
   11  through  negotiated fees or by sale of such bonds to an underwriter at a
   12  price less than the sum of par value of, and the  accrued  interest  on,
   13  such  obligations;  or  (b)  arrange  for the private sale of such bonds
   14  through negotiated agreement, with compensation for  such  sales  to  be
   15  provided  by  negotiated  agreement  or  negotiated  fee,  or  both,  if
   16  required. The cost of such underwriting or private  placement  shall  be
   17  deemed  a  preliminary  cost  for purposes of section 11.00 of the local
   18  finance law.
   19    8. Except as provided in this article, all proceedings  in  connection
   20  with  the  issuance of bonds or bond anticipation notes authorized to be
   21  issued pursuant to this section shall be had  and  taken  in  accordance
   22  with  the  provisions  of the local finance law; provided, however, that
   23  any resolution or resolutions authorizing the  issuance  of  such  bonds
   24  shall not be subject to either a mandatory or permissive referendum.
   25    9.  In  any  fiscal  year  beginning with the fiscal year in which the
   26  municipality issues debt under this section to fund a  deficit,  to  and
   27  including  the  last  fiscal  year  during  which  such debt or any debt
   28  incurred to refund such debt is outstanding:
   29    (a) The municipality shall be subject to such requirements of subdivi-
   30  sion two of section sixty-two, subdivisions  two,  three,  and  four  of
   31  section  sixty-three,  and subdivision two of section sixty-four of this
   32  article.
   33    (b) The municipality shall not issue any further bonds or bond  antic-
   34  ipation notes unless and until the affordability of such additional debt
   35  to  the  tax  base  supporting the indebtedness has been reviewed by the
   36  comptroller and the municipality has responded in writing to recommenda-
   37  tions, if any, which the comptroller may, in his or her discretion, make
   38  thereon. The comptroller may require the chief  fiscal  officer  of  the
   39  municipality  to  prepare  and  submit:  (i)  a  plan  which details the
   40  projected fiscal impact of the proposed issuance of bonds or bond antic-
   41  ipation notes including financing costs, and future direct and  indirect
   42  operating  costs  of,  and  any  resulting  revenues from, the object or
   43  purpose to be financed; and (ii) an analysis of the affordability to the
   44  tax base supporting the debt service on the bonds or  notes.  The  comp-
   45  troller  may  require  such  other  information as the comptroller deems
   46  necessary to complete the review of affordability. The comptroller shall
   47  make any recommendations within thirty days of receipt of  all  informa-
   48  tion  necessary  to complete the review of affordability.  Copies of the
   49  plan, analysis, and other information prepared by the chief fiscal offi-
   50  cer and the recommendations of the comptroller shall be provided to  the
   51  director of the budget and secretary of state.
   52    (c)  The chief fiscal officer of the municipality on whose behalf such
   53  deficit bonds or notes have been issued shall monitor  its  budgets  and
   54  for  each  budget,  prepare a quarterly report of summarized budget data
   55  depicting overall trends of actual revenues and budget expenditures  for
   56  the  entire budget rather than individual line items. Such reports shall
       S. 1406                            250                           A. 2106
 
    1  compare revenue estimates and appropriations as set forth in such budget
    2  with the actual revenues and expenditures made to  date.  All  quarterly
    3  reports  shall be accompanied by a recommendation by the chief executive
    4  officer setting forth any remedial action necessary to resolve any unfa-
    5  vorable budget variance including the overestimation of revenues and the
    6  underestimation  of appropriations, and shall be completed within thirty
    7  days of the end of each quarter. These reports shall be submitted to the
    8  local governing board and chief executive officer of such  municipality,
    9  the  director  of  the budget, the   secretary of state, the state comp-
   10  troller, the chairperson of the senate finance committee, and the chair-
   11  person of the assembly ways and means committee.
   12    (d) Paragraphs (a), (b), and (c) of this subdivision shall also  apply
   13  to any municipality that directly or indirectly utilizes the proceeds of
   14  debt  issued  by any public benefit corporation or not-for-profit corpo-
   15  ration to fund a deficit of  the  municipality.  Any  such  municipality
   16  shall  comply  with  such  paragraphs  beginning with its fiscal year in
   17  which such debt has been issued, to and including the last  fiscal  year
   18  during which such debt or any debt to refund such debt is outstanding.
   19    §  67.  Fiscal recovery financing.   If, upon application by a munici-
   20  pality, made pursuant to a request of the chief executive officer of the
   21  municipality concurred in by a majority of the total membership  of  the
   22  legislative body for such municipality, the director of the budget shall
   23  determine  that,  due  to conditions of fiscal stress or negative credit
   24  factors, there is a substantial likelihood that the municipality will be
   25  unable to sell its obligations in the general public market, the munici-
   26  pality may request that the agency issue fiscal recovery bonds or  notes
   27  pursuant  to  section  twenty-four  hundred  thirty-five-g of the public
   28  authorities law to  (i)  refund  or  restructure  through  refunding  or
   29  renewal  the  outstanding debt obligations of the municipality; (ii) pay
   30  related costs of issuance;  and  (iii)  provide  for  any  debt  service
   31  reserve  fund.  When  such  determination is made by the director of the
   32  division of the  budget,  the  municipality  shall  be  subject  to  the
   33  provisions  of  section  sixty-four of this article. In addition, subse-
   34  quent to the issuance of such fiscal recovery notes or  bonds,  and  for
   35  each  fiscal  year  in which such notes or bonds issued pursuant to this
   36  article are outstanding, no additional municipality borrowing  shall  be
   37  made until the comptroller shall have filed a certificate with the chief
   38  financial  officer  of  the municipality providing in effect a favorable
   39  comment on the affordability of such additional borrowing. Notwithstand-
   40  ing this limitation, if the comptroller fails to comment  within  twenty
   41  days  of  a  municipal  request,  the proposed borrowing shall be deemed
   42  affordable.  No such certification shall be required for a  municipality
   43  to issue bonds or notes to pay outstanding bonds or notes.
   44    §  68.  Inconsistency  with  other laws. To the extent this article is
   45  inconsistent with any general, special, or local law  concerning  budget
   46  procedures, this article shall apply.
   47    §  69.  Notice of benchmarks and additional criteria. The comptroller,
   48  at least biennially, shall develop, and after approval of  the  director
   49  of  the  budget  and  the  secretary  of state, shall provide to munici-
   50  palities notice, in such manner as the comptroller deems appropriate, of
   51  all benchmarks, all commonly accepted  criteria  for  fiscal  stress  or
   52  susceptibility  to  fiscal  stress,  and any definition of non-recurring
   53  revenues as may be specified by the comptroller  for  purposes  of  this
   54  article.
   55    §  69-a.  Reports. Not later than November fifteenth of each year, the
   56  comptroller shall file an annual report with the  governor,  the  chair-
       S. 1406                            251                           A. 2106
 
    1  person  of the senate finance committee, the chairperson of the assembly
    2  ways and means committee, the director of the budget, and the  secretary
    3  of  state on the financial condition, during their last completed fiscal
    4  years,  of  the  municipalities  which  are subject to the provisions of
    5  section sixty-three, sixty-four, sixty-five, or sixty-six of this  arti-
    6  cle.  The  report  shall  be  in sufficient form and detail to permit an
    7  accurate depiction of the financial condition of each such municipality.
    8  The comptroller shall also notify the governor, the chairperson  of  the
    9  senate finance committee, the chairperson of the assembly ways and means
   10  committee,  the  director  of the budget, and the secretary of state, as
   11  soon as practicable, in any case where the comptroller has identified  a
   12  municipality  pursuant to section sixty-three, sixty-four, or sixty-five
   13  of this article.  Notwithstanding any inconsistent provision of law, and
   14  in addition to any other requirements in this  article,  copies  of  all
   15  municipal  self-evaluations,  reports, financial plans and modifications
   16  thereof, debt  affordability  analysis,  comptroller's  recommendations,
   17  determinations,  approvals,  and  disapprovals,  and all other documents
   18  developed according to the provisions of this article shall be  provided
   19  to the director of the budget and the secretary of state upon request.
   20    §  69-b.  No duplication. Nothing in this article shall be interpreted
   21  to require either the comptroller or  a  municipality  to  duplicate  an
   22  oversight  or reporting function due to the application of more than one
   23  provision of this article or any other related provision of law to  such
   24  function.
   25    § 125. Section 2431 of the public authorities law, as amended by chap-
   26  ter  203  of the laws of 2000, the third undesignated paragraph as added
   27  by section 6 of part B of chapter 88 of the  laws  of  2000,  the  fifth
   28  undesignated  paragraph as added by section 65 and the closing paragraph
   29  as added by section 66 of part H of chapter 83 of the laws of  2002,  is
   30  amended to read as follows:
   31    §  2431.  Legislative  findings.  It  is  hereby declared to be in the
   32  public interest and to be the policy of the state to foster and  promote
   33  by  all  reasonable  means the provision of adequate capital markets and
   34  facilities for borrowing money by its  several  municipalities  for  the
   35  financing  of  their  public  improvements  or purposes from proceeds of
   36  bonds or notes issued by those municipalities, and to assist those muni-
   37  cipalities in fulfilling their needs for improvements by use of creation
   38  of indebtedness and to the extent possible to reduce  costs  of  indebt-
   39  edness  to taxpayers and residents of the state and to encourage contin-
   40  ued investor interest in the purchase  of  bonds  or  notes  of  munici-
   41  palities  as sound and preferred securities for investment. It is in the
   42  public interest and is the policy of the state to encourage its  munici-
   43  palities  to  continue their independent undertakings of public improve-
   44  ments and purposes and the financing thereof and to assist them  therein
   45  by  making funds available at reduced interest costs for orderly financ-
   46  ing of public improvements and purposes, particularly for those  munici-
   47  palities  not otherwise able to borrow for those purposes. It is further
   48  declared the state should exercise its power  in  the  interest  of  its
   49  municipalities  to further and implement those policies by authorizing a
   50  state instrumentality to be created as a body corporate and  politic  to
   51  have  full  powers  to  borrow money and to issue its bonds and notes to
   52  make funds available through the facilities of that  instrumentality  at
   53  reduced  rates  and  on  more  favorable  terms for borrowing by munici-
   54  palities through the purchase by that instrumentality of  the  bonds  or
   55  notes  of  municipalities and by granting broad powers to the instrumen-
   56  tality to accomplish and to carry out  the  aforesaid  policies  of  the
       S. 1406                            252                           A. 2106
 
    1  state which are in the public interest of the state and of its taxpayers
    2  and  residents.  It is further declared to be in the public interest and
    3  is the policy of the state that such instrumentality should  so  conduct
    4  its operations, including the full utilization of existing public corpo-
    5  rations, as to provide the lowest rates in terms of borrowing to munici-
    6  palities  as  is  consistent  with  a  self-supporting operation with no
    7  expectation of subsidization with state funds.
    8    It is further declared to be in the public  interest  and  it  is  the
    9  policy  of  the  state  to  provide  a means by which certain cities may
   10  receive moneys to refund certain property  taxes  determined  to  be  in
   11  excess  of  state  constitutional tax limits or to reimburse such cities
   12  for the prior refunding of such taxes.
   13    It is further declared to be in the public  interest  and  it  is  the
   14  policy  of the state to provide a means by which certain special program
   15  municipalities may receive moneys for the purpose of paying the cost  of
   16  settling  litigation involving the city school districts of such special
   17  program municipalities and the teachers' unions thereof.
   18    It is hereby  further  declared  that  many  municipalities  are  owed
   19  millions  of dollars annually in unpaid property taxes. Such uncollected
   20  taxes adversely impact the municipalities ability to timely collect  the
   21  moneys  necessary  to  meet their operating expenditures and provide for
   22  the delivery of necessary local government services, amplifying the risk
   23  of future real property tax increases  and  negatively  impacting  those
   24  taxpayers  who  timely remit payment. It is hereby further declared that
   25  limited means exist for municipalities to  expedite  the  collection  of
   26  such  delinquent  taxes  and  that  as a result such delinquencies often
   27  remain unpaid thereby creating a lien against the affected real property
   28  and that the sale of such tax liens will enable municipalities to  expe-
   29  dite  the  receipt  of anticipated revenues and provide a funding source
   30  which will enable municipalities to more  effectively  carry  out  their
   31  public  purposes.  It is further declared that the state should exercise
   32  its power in the interest of its municipalities to facilitate  the  sale
   33  and  purchase  of tax liens by authorizing such instrumentality, a trust
   34  or other single purpose entity or entities created by such instrumental-
   35  ity, to have full powers to borrow money and to issue its bonds,  notes,
   36  certificates  of participation or other obligations to make funds avail-
   37  able to municipalities through the facilities of said instrumentality by
   38  the purchase through that instrumentality of the  delinquent  tax  liens
   39  created  and held by municipalities and by granting broad powers to such
   40  instrumentality to accomplish and to carry out the aforesaid policies of
   41  the state which are in the public interest  of  the  state  and  of  its
   42  taxpayers and residents.
   43    It  is  hereby further found and declared that, on September eleventh,
   44  two thousand one, events occurred that resulted in dramatic and  unfore-
   45  seen  negative fiscal changes which affected the state and certain muni-
   46  cipalities thereof. The impact of these events, if left unremediated, is
   47  contrary to the public interest of the state and such municipalities and
   48  threatens a decline in the general prosperity and  economic  welfare  of
   49  the  inhabitants  of  such  municipalities  and the people of the state.
   50  Accordingly, it is a matter of substantial and imperative state  concern
   51  that  such  municipalities  not  fail to address local needs and thereby
   52  suffer adverse consequences. It is further declared to be in the  public
   53  interest  and  it is the policy of the state to provide a means for such
   54  municipalities to receive  assistance  to  meet  their  obligations  and
   55  thereby  be  assisted  in  relieving  the effects of the negative fiscal
   56  changes caused by the September eleventh, two thousand one events.
       S. 1406                            253                           A. 2106
 
    1    It is further declared to be in the public  interest  and  it  is  the
    2  policy of the state to provide a means by which the enlarged city school
    3  district  of the city of Troy may receive moneys for the specific object
    4  and purpose of liquidating the  projected  accumulated  deficit  in  its
    5  general  fund at the close of its fiscal year ending June thirtieth, two
    6  thousand two, including any budget notes and revenue anticipation  notes
    7  which may be a part of the deficit.
    8    It  is  hereby  further  found  and declared that conditions of fiscal
    9  stress are contrary to the public interest of the state and its  munici-
   10  palities  and  threaten a decline in the general prosperity and economic
   11  welfare of the inhabitants of the state and its municipalities.  Accord-
   12  ingly, it is a matter of substantial and imperative state concern that a
   13  municipality not fail to meet its obligations and thereby suffer adverse
   14  consequences.
   15    It  is  further  declared  to  be in the public interest and it is the
   16  policy of the state to provide a means  for  municipalities  to  receive
   17  assistance  to meet their obligations and thereby be assisted in reliev-
   18  ing or avoiding conditions of fiscal stress.
   19    § 126. Subdivisions 2, 3, 4, 5, and 10 of section 2432 of  the  public
   20  authorities  law,  subdivisions 2, 3, and 10 as amended by section 67 of
   21  part H of chapter 83 of the laws of 2002, subdivision 4  as  amended  by
   22  chapter 903 of the laws of 1972, and subdivision 5 as amended by section
   23  117  of  part B of chapter 436 of the laws of 1997, are amended and nine
   24  new subdivisions 5-d, 5-e, 5-f, 25, 26, 27, 28, 29, and 30 are added  to
   25  read as follows:
   26    (2)  "Bonds"  and  "Notes". The bonds and notes, including any special
   27  program bonds [and],  special  school  purpose  bonds,  special  purpose
   28  bonds,  and  fiscal recovery bonds and notes, respectively issued by the
   29  agency pursuant to this title. Bonds and notes shall not include any tax
   30  lien collateralized securities issued pursuant to this title.
   31    (3) "Municipal Bond". A bond or note or evidence of debt payable  from
   32  any  local  revenues,  including  taxes,  assessments and rents, which a
   33  municipality may lawfully issue to finance local improvements and public
   34  purposes or as a refunding or renewal of such bond, note, or evidence of
   35  debt but does not include (a) any bond  or  note  or  evidence  of  debt
   36  issued  by  any  other state or any public body or municipal corporation
   37  thereof, (b) any special program agreement, [or] (c) any special  school
   38  purpose  agreement  or any special school deficit program agreement, (d)
   39  any special purpose agreement, or (e) any fiscal recovery agreement.
   40    [4.] (4) "Municipality[.]".   Any  public  corporation  enumerated  in
   41  [subdivisions]  paragraphs  one, two, two-a, two-b, and three of section
   42  2.00 of the local finance law, except that for purposes of  section  two
   43  thousand  four  hundred  thirty-five-g of this title, municipality shall
   44  mean a county, town, village, or city, other than a city having a  popu-
   45  lation  of one million or more, the city of Troy so long as an emergency
   46  as defined in chapter seven hundred twenty-one of the laws  of  nineteen
   47  hundred  ninety-four, as amended, is in effect, and the county of Nassau
   48  so long as an interim finance period or control period,  as  defined  in
   49  chapter eighty-four of the laws of two thousand, is in effect.
   50    (5)  "State  Aid". All payments and contributions made by the state to
   51  and in aid of a municipality as may  be  provided  by  law,  other  than
   52  payments  of  state contributions for old age assistance, family assist-
   53  ance, aid to the blind, aid to the disabled, safety net  assistance  and
   54  local  social services administration costs; provided that, with respect
   55  to any provisions of this title relating to special  purpose  bonds  and
   56  special  purpose agreements or fiscal recovery bonds and fiscal recovery
       S. 1406                            254                           A. 2106
 
    1  agreements, the term state aid shall  have  the  meaning  set  forth  in
    2  section ninety-two-bb of the state finance law.
    3    (5-d)  "State  Aid  Revenues".  State aid paid or payable by the comp-
    4  troller to the agency pursuant to section  ninety-two-bb  of  the  state
    5  finance law.
    6    (5-e)  "Special  Purpose State Aid Revenues". The balance of state aid
    7  that does not constitute state aid revenues and that  is  to  be  trans-
    8  ferred  by the comptroller to a special purpose municipality pursuant to
    9  section ninety-two-bb of the state finance law.
   10    (5-f) "Fiscal Recovery State Aid Revenues". The balance of  state  aid
   11  that  does  not  constitute  state aid revenues and that is to be trans-
   12  ferred by the comptroller to a fiscal recovery municipality pursuant  to
   13  section ninety-two-bb of the state finance law.
   14    (10) "Debt Service Reserve Fund Requirement". With respect to any debt
   15  service  reserve fund created by section two thousand four hundred thir-
   16  ty-nine of this title relating to bonds other than special program bonds
   17  [or], special school purpose bonds or  special  school  deficit  program
   18  bonds,  special  purpose  bonds,  or  fiscal  recovery  bonds, as of any
   19  particular date of computation, an amount of money equal to the greatest
   20  of the respective amounts, for the then current or any succeeding calen-
   21  dar year, of annual debt service payments required to  be  made  to  the
   22  agency on all municipal bonds purchased with the proceeds of bonds which
   23  bonds  are  secured  by such debt service reserve fund, such annual debt
   24  service payments for any calendar year being an amount of money equal to
   25  the aggregate of (a) all interest payable during such calendar  year  on
   26  all municipal bonds purchased by the agency and then outstanding on said
   27  date of computation which are secured by such debt service reserve fund,
   28  plus  (b)  the  principal amount of all municipal bonds purchased by the
   29  agency and then outstanding on said date  of  computation  which  mature
   30  during  such  calendar year and are secured by such debt service reserve
   31  fund; and with respect to any  debt  service  reserve  fund  created  by
   32  section  two thousand four hundred thirty-nine of this title relating to
   33  an issue or issues of special program bonds [or], special school purpose
   34  bonds or special school deficit program bonds, special purpose bonds, or
   35  fiscal recovery bonds, such amount as shall be determined by the agency.
   36    (25) "Special Purpose Municipality". Each of the  cities  of  Buffalo,
   37  Yonkers,  Rochester,  and Syracuse in the state of New York is a special
   38  purpose municipality for the purposes of this chapter.
   39    (26) "Special Purpose Bonds". An issue of bonds of the agency, all  or
   40  a  portion  of  the  proceeds  of  which are made available to a special
   41  purpose municipality in connection with the execution by the agency  and
   42  such special purpose municipality of a special purpose agreement.
   43    (27)  "Special Purpose Agreement". An agreement between the agency and
   44  a special purpose municipality entered  into  pursuant  to  section  two
   45  thousand four hundred thirty-five-f of this title.
   46    (28)  "Fiscal  Recovery Municipality".  Any municipality for which the
   47  director of the state division of the budget has  made  a  determination
   48  pursuant to section sixty-seven of the general municipal law.
   49    (29)  "Fiscal Recovery Bonds or Notes".  An issue of bonds or notes of
   50  the agency, all or a portion of the proceeds of which are made available
   51  to a fiscal recovery municipality in connection with  the  execution  by
   52  the  agency  and  such fiscal recovery municipality of a fiscal recovery
   53  agreement pursuant to section two thousand four hundred thirty-five-g of
   54  this title.
       S. 1406                            255                           A. 2106
 
    1    (30) "Fiscal Recovery Agreement".  An agreement between the agency and
    2  a fiscal recovery municipality entered  into  pursuant  to  section  two
    3  thousand four hundred thirty-five-g of this title.
    4    §  127.  Subdivisions  3, 11, 18, and 21 of section 2434 of the public
    5  authorities law, as amended by section 68 of part H of chapter 83 of the
    6  laws of 2002, are amended and a new subdivision 21-d is added to read as
    7  follows:
    8    (3) To make and execute contracts and all other instruments  necessary
    9  or  convenient  for  the exercise of its powers and functions under this
   10  title, including, without  limitation,  any  special  program  agreement
   11  entered  into  pursuant to the provisions of section twenty-four hundred
   12  thirty-five-a of this title, any purchase  and  sale  agreement  entered
   13  into  pursuant  to the provisions of section twenty-four hundred thirty-
   14  five-b of this title [and], any special school deficit program agreement
   15  entered into pursuant to section twenty-four  hundred  thirty-five-e  of
   16  this  title,  any special purpose agreement entered into pursuant to the
   17  provisions of section twenty-four hundred thirty-five-f of  this  title,
   18  and   any  fiscal  recovery  agreement  entered  into  pursuant  to  the
   19  provisions of section twenty-four hundred thirty-five-g of this title;
   20    (11) To make and execute contracts  for  the  servicing  of  municipal
   21  bonds acquired by the agency pursuant to this title, and for the servic-
   22  ing  of  special  program  agreements, special school purpose agreements
   23  [and], special school deficit program agreements, special purpose agree-
   24  ments, and fiscal recovery agreements and to pay the reasonable value of
   25  services rendered to the agency pursuant to those contracts;
   26    (18) To establish any terms and provisions with respect to any special
   27  program agreement, special school purpose agreement  or  special  school
   28  deficit program agreement, special purpose agreement, or fiscal recovery
   29  agreement,  including any terms for payment, and any other matters which
   30  are necessary, desirable or advisable in the judgment of the agency;
   31    (21) To pledge or assign, as security for any of its bonds  or  notes,
   32  any  moneys, funds, municipal bonds, special program agreements, special
   33  school purpose agreements, [or] special school  deficit  program  agree-
   34  ments, special purpose agreements, fiscal recovery agreements, assets or
   35  revenues  of the agency, including, without limitation, any state aid or
   36  school aid  received  or  receivable  pursuant  to  section  twenty-four
   37  hundred thirty-six of this title;
   38    (21-d) To certify to the comptroller the amounts required with respect
   39  to special purpose bonds or fiscal recovery bonds and notes as described
   40  in  section  twenty-four  hundred  thirty-five-f  or twenty-four hundred
   41  thirty-five-g of this title as applicable;
   42    § 128. Subdivision 1 of section 2435 of the public authorities law, as
   43  amended by chapter 346 of the laws  of  1974,  is  amended  to  read  as
   44  follows:
   45    1.  The agency may purchase, and contract to purchase, municipal bonds
   46  from municipalities at such price or prices, upon such terms and  condi-
   47  tions  and  in  such manner, not inconsistent with the provisions of the
   48  local finance law, as the agency shall deem advisable; provided,  howev-
   49  er, that the average interest rate payable on all municipal bonds (taken
   50  as a group) purchased with the proceeds of an issue of bonds shall equal
   51  or  exceed  the  interest  rate  on  such  issue  of bonds; and provided
   52  further, however, that the agency shall not purchase the municipal bonds
   53  of any municipality if the aggregate principal amount thereof,  together
   54  with  the  aggregate  principal  balances of the municipal bonds of such
   55  municipality then outstanding and held by the agency, exceed  an  amount
   56  equal  to ten percent of the aggregate principal amount of the statutory
       S. 1406                            256                           A. 2106
 
    1  authorization at the time for  the  issuance  of  bonds  and  notes,  as
    2  provided  in section twenty-four hundred thirty-eight of this title, and
    3  the agency shall not purchase the municipal bonds of any municipality if
    4  the  aggregate principal amount thereof exceeds an amount equal to fifty
    5  percent of  the  aggregate  principal  amount  of  all  municipal  bonds
    6  proposed  to be so purchased at the time.  The provisions of this subdi-
    7  vision shall not apply to municipal bonds purchased with the proceeds of
    8  fiscal recovery bonds.
    9    § 129. The public  authorities  law  is  amended  by  adding  two  new
   10  sections 2435-f and 2435-g to read as follows:
   11    §  2435-f.  Special  purpose  agreements.  (1) In order to fulfill the
   12  purposes of this title and to provide  a  means  by  which  the  special
   13  purpose  municipalities may receive assistance to meet their obligations
   14  and, notwithstanding any general or special law  to  the  contrary,  the
   15  agency  and  each  special  purpose  municipality  are,  subject  to the
   16  provisions of subdivision two of  this  section,  hereby  authorized  to
   17  enter into one or more special purpose agreements in accordance with the
   18  provisions  of  this  title  as to financing of costs by the agency, the
   19  application of state aid revenues to the agency to secure its bonds  and
   20  further  assurances in respect of the agency's receipt of such revenues.
   21  Any such special purpose agreements shall not constitute indebtedness of
   22  the special purpose municipality for purposes of section  20.00  of  the
   23  local  finance  law  or  any  constitutional or statutory limitation. In
   24  addition, any special purpose  bonds  issued  in  connection  with  such
   25  special purpose agreement shall not constitute a debt of the state or of
   26  the  applicable special purpose municipality under any constitutional or
   27  statutory provision including article VIII of the state constitution and
   28  section 104.00 of the local finance law. State aid revenues shall belong
   29  to the agency, shall not be, or be treated as, revenues of  the  special
   30  purpose   municipality  for  appropriation,  accounting,  or  any  other
   31  purpose,  and  shall  not  be  consolidated,  commingled,  or  otherwise
   32  combined  with  any other moneys of the agency, and such special purpose
   33  agreement shall include a statement to such effect. Any such  state  aid
   34  revenues  and  any such special purpose agreements may be pledged by the
   35  agency in accordance with and with the  effect  of  subdivision  ten  of
   36  section  twenty-four  hundred  thirty-seven  of this title to secure its
   37  bonds and may not be modified thereafter except as provided by the terms
   38  of the pledge. Each special purpose agreement shall specify  the  amount
   39  to  be  made  available  to  the respective special purpose municipality
   40  through the proceeds of an issue of special purpose bonds and such other
   41  matters as the agency shall determine necessary or desirable as  to  the
   42  application  of bond proceeds or the security of the bonds. Such special
   43  purpose agreement shall also provide that the agency shall not be  enti-
   44  tled to receive any special purpose state aid revenues.
   45    (2)  Upon  entering  into  a  special  purpose agreement, each special
   46  purpose municipality shall once, for paragraph (a) of this  subdivision,
   47  and annually thereafter, for paragraphs (b) and (c) of this subdivision,
   48  commit to the following provisions:
   49    (a)  The chief executive officer of a special purpose municipality and
   50  the chief executive officer of the respective school district shall,  at
   51  the time the special purpose agreement is entered into, submit a self-e-
   52  valuation  of  the current fiscal affairs of the special purpose munici-
   53  pality and of the school district, accompanied by the plan for  the  use
   54  of bond proceeds pursuant to section twenty-four hundred thirty-eight of
   55  this  title,  to  the  comptroller,  the director of the budget, and the
   56  secretary of state, in such form approved by the comptroller. Such eval-
       S. 1406                            257                           A. 2106
 
    1  uation shall reflect the current fiscal year status including the appli-
    2  cation of the special purpose bond proceeds authorized in this title and
    3  the special purpose municipality's, and its school district's, plans for
    4  budgetary  and  management restructuring to bring about fiscal integrity
    5  and structural budgetary balance by the special  purpose  municipality's
    6  fiscal year ending June thirtieth, two thousand six;
    7    (b)  The chief fiscal officers of the special purpose municipality and
    8  its school district shall each prepare and submit to the governing board
    9  of the special purpose municipality and for  the  school  district,  the
   10  special  purpose municipality's chief executive officer, and the special
   11  purpose municipality's governing board, monthly financial reports, with-
   12  in fifteen days from the end of each month, and prepare  and  submit  to
   13  the  comptroller, the director of the budget, and the secretary of state
   14  quarterly financial reports, within fifteen days from the  end  of  each
   15  quarter,  both  in such form as may be prescribed by the comptroller. In
   16  the event that the comptroller provides  any  recommendations  regarding
   17  any  reports  required  by  this  subdivision, the chief fiscal officers
   18  shall prepare a response to the recommendations of  the  comptroller  in
   19  such  form  as  requested by the comptroller. Copies of such recommenda-
   20  tions and the responses thereto shall also be submitted to the  director
   21  of the state budget and the secretary of state;
   22    (c) Subsequent to having entered into a special purpose agreement, the
   23  chief  executive  officer  of  the  special purpose municipality and the
   24  chief executive officer of the school  district  shall  annually  submit
   25  their   tentative  budgets,  proposed  four-year  financial  plans,  and
   26  proposed capital programs for the next succeeding fiscal year for review
   27  by the comptroller.  Copies of these materials shall  be  simultaneously
   28  provided to the director of the budget and the secretary of state.  Such
   29  tentative  budgets  shall  be submitted to the comptroller no later than
   30  the last date on which  the  special  purpose  municipality's  tentative
   31  budget must be prepared, but in no event later than thirty days prior to
   32  the  commencement of the next succeeding fiscal year. The proposed four-
   33  year financial plans and proposed capital programs shall be submitted at
   34  the same time as the tentative budgets;
   35    (d) The comptroller shall in each such  year  examine  such  tentative
   36  budgets,  financial plans, and capital programs and make recommendations
   37  thereon to the special purpose municipality  and  the  school  district,
   38  within  fifteen  days  of receipt thereof with copies to the director of
   39  the budget and the secretary of state.   Such recommendations  shall  be
   40  made  after review of the estimates of revenues and expenditures of such
   41  special purpose municipality and school district and such other informa-
   42  tion as the comptroller deems appropriate, and shall be  made  prior  to
   43  the  adoption  of  the final budget. At least forty-eight hours prior to
   44  the adoption of the final budget, the chief  executive  officer  of  the
   45  special  purpose  municipality  and its respective school district shall
   46  each prepare a written response to  the  comptroller's  recommendations.
   47  Such  responses  shall  include,  with respect to each recommendation, a
   48  statement of action taken or proposed to be taken, or if  no  action  is
   49  warranted  or  is to be taken or proposed, an explanation of the reasons
   50  therefor. The comptroller's recommendations  and  the  response  thereto
   51  shall  be  distributed  to  each  member  of the special purpose munici-
   52  pality's municipal governing board and the governing board of the school
   53  district of such special purpose municipality, filed with the  clerk  of
   54  the  special  purpose  municipality  and made a part of the budget docu-
   55  ments. When so filed, such response shall be a  public  record  open  to
   56  inspection  by  any interested person. The response shall also be deliv-
       S. 1406                            258                           A. 2106
 
    1  ered to the director of the budget, the secretary of state,  the  office
    2  of  the state comptroller, the chairperson of the senate finance commit-
    3  tee, and the chairperson of the assembly ways and  means  committee.  In
    4  addition,  the chief fiscal officers of the special purpose municipality
    5  and of the school district shall submit the annual financial reports  no
    6  later  than  thirty days from the close of the fiscal year for which the
    7  report is  prepared;  provided,  however,  that  such  report  shall  be
    8  prepared  in  accordance  with generally accepted accounting principles,
    9  and shall be audited by an independent entity not later than ninety days
   10  from the close of the fiscal year for which such report is prepared. The
   11  requirements of this section shall remain in  effect  for  each  special
   12  purpose  municipality  and  school  district  until  such time that each
   13  special purpose municipality and school  district  have  achieved  three
   14  consecutive  structurally  balanced  budgets  without the use of special
   15  purpose bonds, or any other bonds or notes pursuant to this chapter,  as
   16  certified  by  the  comptroller  to the special purpose municipality and
   17  school district upon the close of each fiscal year or until such are  no
   18  longer  outstanding,  whichever  is  earlier. The comptroller shall also
   19  notify the special purpose municipality and school district  when  three
   20  such  consecutively balanced budgets have been achieved and that no such
   21  further reporting is required. Such certification and such  notification
   22  shall  be  submitted  in writing to the special purpose municipality and
   23  school district, the director of the budget, the secretary of state, the
   24  chairperson of the senate finance  committee,  the  chairperson  of  the
   25  assembly ways and means committee, and the chairperson of the agency.
   26    §  2435-g. Fiscal recovery agreements. (1) Upon meeting the conditions
   27  set forth in section sixty-seven of the general  municipal  law  and  to
   28  provide  a  means  by which any fiscal recovery municipality may receive
   29  assistance to refund or renew any outstanding debt obligations  by  such
   30  municipality  and,  notwithstanding  any  general  or special law to the
   31  contrary, the agency and each fiscal recovery municipality are,  subject
   32  to  the provisions of subdivision two of this section, hereby authorized
   33  to enter into one or more fiscal recovery agreements in accordance  with
   34  the provisions of this title as to financing of costs by the agency, the
   35  application  of  state aid revenues to the agency to secure its bonds or
   36  notes, and further assurances in respect of the agency's receipt of such
   37  revenues. Any such  fiscal  recovery  agreements  shall  not  constitute
   38  indebtedness of the fiscal recovery municipality for purposes of section
   39  20.00  of the local finance law or any constitutional or statutory limi-
   40  tation including article VIII of  the  state  constitution  and  section
   41  104.00  of the local finance law. In addition, any fiscal recovery bonds
   42  or notes issued in connection with such fiscal recovery agreement  shall
   43  not  constitute a debt of the state or of the applicable fiscal recovery
   44  municipality under any constitutional or statutory provision. State  aid
   45  revenues  shall  belong  to  the agency, shall not be, or be treated as,
   46  revenues of the fiscal recovery municipality for appropriation, account-
   47  ing, or any other purpose, and shall not be consolidated, commingled, or
   48  otherwise combined with any other moneys of the agency, and such  fiscal
   49  recovery  agreement  shall  include a statement to such effect. Any such
   50  state aid revenues and  any  such  fiscal  recovery  agreements  may  be
   51  pledged by the agency in accordance with and with the effect of subdivi-
   52  sion  ten  of  section twenty-four hundred thirty-seven of this title to
   53  secure its bonds or notes and may not be modified thereafter  except  as
   54  provided  by  the  terms  of  the pledge. Each fiscal recovery agreement
   55  shall specify the amount to be made available to the  respective  fiscal
   56  recovery  municipality through the proceeds of an issue of fiscal recov-
       S. 1406                            259                           A. 2106
 
    1  ery bonds or notes as necessary to refund or renew the outstanding  debt
    2  obligations  of  such  municipality and such other matters as the agency
    3  shall determine necessary or desirable as to  the  application  of  bond
    4  proceeds  or  the security of the bonds.  Such fiscal recovery agreement
    5  shall also provide that the agency shall not be entitled to receive  any
    6  fiscal recovery state aid revenues.
    7    (2)  (a)  With  respect to each fiscal recovery municipality, for each
    8  fiscal year occurring during the time fiscal  recovery  bonds  or  notes
    9  issued  pursuant  to any fiscal recovery agreement are outstanding, such
   10  fiscal recovery municipality shall comply with the provisions of  subdi-
   11  vision  two  of  section sixty-two, subdivisions two, three, and four of
   12  section sixty-three, and subdivision two of section  sixty-four  of  the
   13  general  municipal  law.  Execution  of a fiscal recovery agreement by a
   14  municipality shall be deemed acceptance by, and the agreement  of,  such
   15  municipality to so comply with these provisions of the general municipal
   16  law.
   17    (b) Any fiscal recovery agreement entered into pursuant to subdivision
   18  one  of  this section shall be authorized by the fiscal recovery munici-
   19  pality in the same manner as an authorization for the issuance  of  debt
   20  obligations  to  refund  or renew the debt obligations being refunded or
   21  renewed by the fiscal recovery bonds or notes.
   22    (c) As a condition precedent to the authorization of a fiscal recovery
   23  agreement pursuant to subdivision one of this section, a fiscal recovery
   24  municipality shall authorize pursuant to the local finance law or  other
   25  applicable  law  the issuance of its debt obligations for the purpose of
   26  refunding or renewing its debt  obligations  and  for  which  assistance
   27  therefor is expected to be received from the proceeds of fiscal recovery
   28  bonds or notes of the agency and, notwithstanding any general or special
   29  law  to  the  contrary,  including  section  57.00 the local finance law
   30  respecting sale of bonds and section 62.10  of  the  local  finance  law
   31  respecting  limitation  on  amount, shall authorize the delivery of such
   32  debt obligations in the  form of a statutory installment  bond  or  note
   33  pursuant  to  section  62.10 of the local finance law to the agency upon
   34  receipt of the proceeds of the fiscal recovery bonds  or  notes  of  the
   35  agency  in  the  amount specified in the fiscal recovery agreement; such
   36  debt obligations so delivered to the agency shall be deemed  outstanding
   37  in  the  amount  of the aggregate of unpaid installments for purposes of
   38  the local finance law and the state constitution.
   39    (d) The agency is authorized to accept receipt of the debt obligations
   40  of a fiscal recovery municipality delivered in accordance with paragraph
   41  (c) of this subdivision and shall hold such obligations in trust and, in
   42  its discretion, may pledge such obligations as additional  security  for
   43  its fiscal recovery bonds or notes issued to assist such municipality.
   44    (e)  Nothing  contained  in  this  title  shall be deemed to create an
   45  object or purpose, to establish or extend a period for which a municipal
   46  bond or note as a debt obligation may be issued pursuant  to  the  local
   47  finance  law, or to create new authority for the fiscal recovery munici-
   48  pality to issue a bond or note payable from a tax on real estate  levied
   49  outside  the limit imposed by the state constitution on the amount to be
   50  raised by tax on real estate for local purposes other than debt service,
   51  or to modify, amend, repeal, or rescind any other provision of the local
   52  finance law governing the issuance by the fiscal  recovery  municipality
   53  of its bonds or the payment of principal and interest thereon.
   54    (f)  At  all times after receipt of the debt obligations of the fiscal
   55  recovery municipality acquired pursuant to this subdivision, the  agency
   56  shall  have  the same rights and powers with respect to such obligations
       S. 1406                            260                           A. 2106
 
    1  as the agency shall have with respect to any other municipal bond  which
    2  it  holds  under  this  title;  provided that the agency may not sell or
    3  transfer to any person other than the fiscal recovery  municipality  any
    4  debt obligation thereof received pursuant to this subdivision unless the
    5  chief executive officer has requested in writing that the agency sell or
    6  transfer  such obligation and, unless the terms of such sale or transfer
    7  have been approved by the comptroller.
    8    § 130. The public authorities law is amended by adding a  new  section
    9  2436-b to read as follows:
   10    §  2436-b.  State  aid  revenues.    (1) With respect to each issue of
   11  outstanding special purpose bonds or fiscal recovery bonds or notes, not
   12  later than October first in each year, or, in the case of the first such
   13  certificate, not later than thirty days after the sale of  an  issue  of
   14  special purpose bonds or fiscal recovery bonds or notes, the chairperson
   15  of  the  agency shall certify to the comptroller and the director of the
   16  budget a schedule setting forth the amount of state aid  revenue  neces-
   17  sary for payment of the following obligations:
   18    (a) all interest and all payments of principal and redemption premium,
   19  if any, on such special purpose bonds and such fiscal recovery bonds and
   20  notes  maturing  or  otherwise  coming  due  during the subsequent state
   21  fiscal year;
   22    (b) the amounts required to be deposited in any debt  service  reserve
   23  fund with respect to such special purpose bonds and such fiscal recovery
   24  bonds and notes;
   25    (c)  the  amount,  if  any,  due to any provider of any bond credit or
   26  liquidity facility, representing payments made by it as provided in  the
   27  applicable  resolution or trust indenture, including any related reason-
   28  able interest, fees, or charges so provided;
   29    (d) the amount, if any, required to be rebated to the United States to
   30  provide for continued federal tax  exemption  of  such  special  purpose
   31  bonds and such fiscal recovery bonds and notes; and
   32    (e)  any  administrative  or  other fees, costs, or charges due to the
   33  agency or any other party in connection with such special purpose  bonds
   34  and such fiscal recovery bonds and notes.
   35    The  certification  may be amended, and in the event of a bond or note
   36  sale shall be amended, no later than thirty days after such sale.    The
   37  schedule  accompanying such certification shall provide for such payment
   38  dates as the agency deems appropriate to ensure  that  sufficient  funds
   39  will  be  available  to  meet  its  obligations relating to such special
   40  purpose bonds and such fiscal recovery bonds and notes as they come due.
   41    (2) All of the provisions of this title relating to  bonds  and  notes
   42  which  are  not  inconsistent  with the provisions of this section shall
   43  apply to obligations authorized  by  this  section,  including  but  not
   44  limited  to  the  power  to  establish adequate reserves therefor and to
   45  issue renewal notes or refunding bonds thereof.
   46    § 131. Subdivisions 1, 4, and 5 of section 2437 of the public authori-
   47  ties law, as amended by section 73 of part H of chapter 83 of  the  laws
   48  of 2002, are amended to read as follows:
   49    (1)  Subject  to  the  provisions of section two thousand four hundred
   50  thirty-eight of this title, the agency shall have the power and is here-
   51  by authorized from time to time to issue its negotiable bonds and  notes
   52  in  conformity with applicable provisions of the uniform commercial code
   53  in such principal amounts as, in the opinion of  the  agency,  shall  be
   54  necessary  to  provide  sufficient  funds  for  achieving  the corporate
   55  purposes thereof, including the purchase of municipal bonds, the provid-
   56  ing of certain  amounts  to  special  program  municipalities  from  the
       S. 1406                            261                           A. 2106
 
    1  proceeds  of  special program bonds, the providing of certain amounts to
    2  special school purpose  municipalities  from  the  proceeds  of  special
    3  school  purpose  bonds,  the  providing  of certain amounts to a special
    4  school  deficit  program  district  from  the proceeds of special school
    5  deficit program bonds, the  providing  of  certain  amounts  to  special
    6  purpose  municipalities  from the proceeds of special purpose bonds, the
    7  providing of certain amounts to fiscal recovery municipalities from  the
    8  proceeds  of fiscal recovery bonds and notes, the payment of interest on
    9  bonds and notes of the agency, establishment of reserves to secure  such
   10  bonds  and  notes, payment of letter of credit, bond insurance and other
   11  credit and liquidity support facility fees, premiums, reimbursements and
   12  expenses, fees and expenses of trustees  and  paying  agents  and  other
   13  financing  costs  including  any  accrued  costs payable to the New York
   14  state housing finance agency pursuant to any contract entered into under
   15  subdivision twelve of section two thousand four hundred  thirty-four  of
   16  this  title  and  all  other  expenditures of the agency incident to and
   17  necessary or convenient to carry out its corporate purposes and  powers,
   18  except the operating expenses of the agency.
   19    (4) Such bonds or notes shall bear such date or dates, shall mature at
   20  such  time or times, shall bear interest at such rate or rates, shall be
   21  of such denominations, shall be in such form,  carry  such  registration
   22  privileges,  be  executed  in such manner, be payable in lawful money of
   23  the United States of America at such place or places within  or  without
   24  the  state, be subject to such terms of redemption prior to maturity and
   25  have such other terms as may be provided by such  resolution  or  resol-
   26  utions  or  such certificate with respect to such bonds or notes, as the
   27  case may be; provided, however, that the maximum maturity of bonds other
   28  than special program bonds, special school purpose bonds  [or],  special
   29  school  deficit program bonds, or special purpose bonds shall not exceed
   30  forty years from the date  thereof,  the  maximum  maturity  of  special
   31  program  bonds  shall  not  exceed thirty years, the maximum maturity of
   32  special school purpose bonds shall not exceed  ten  years,  the  maximum
   33  maturity  of  special  school deficit program bonds shall not exceed ten
   34  years, the maximum maturity of special purpose bonds  shall  not  exceed
   35  ten  years,  and  the  maximum maturity of notes or any renewals thereof
   36  shall not exceed five years from the date of the original issue of  such
   37  notes.
   38    (5) Any bonds or notes of the agency other than special program bonds,
   39  special school purpose bonds [or], special school deficit program bonds,
   40  special  purpose bonds, or fiscal recovery bonds and notes shall be sold
   41  at public sale and from time to time upon such terms and at such  prices
   42  as may be determined by the agency, and the agency may pay all expenses,
   43  premiums  and commissions which it may deem necessary or advantageous in
   44  connection with the issuance  and  sale  thereof.  Any  special  program
   45  bonds,  special  school  purpose bonds or special school deficit program
   46  bonds shall be sold at public or private sale and from time to time upon
   47  such terms and at such prices as may be determined by  the  agency,  and
   48  the  agency  may pay all expenses, premiums and commissions which it may
   49  deem necessary or advantageous in connection with the issuance and  sale
   50  thereof  provided,  however,  that  special  program bonds relating to a
   51  special program agreement entered for the purpose described in paragraph
   52  (b) of subdivision one of section twenty-four hundred  thirty-five-a  of
   53  this  title shall be sold on or before June thirtieth, two thousand one.
   54  No special program bonds, special school  purpose  bonds  [or],  special
   55  school  deficit program bonds, special purpose bonds, or fiscal recovery
   56  bonds and notes of the agency may be sold by the agency at private sale,
       S. 1406                            262                           A. 2106
 
    1  however, unless such sale and the terms thereof have  been  approved  in
    2  writing  by  (a)  the  comptroller,  where such sale is not to the comp-
    3  troller, or (b) the director of the budget, where such sale  is  to  the
    4  comptroller.
    5    §  132.  Section  2438  of  the  public authorities law, as amended by
    6  section 74 of part H of chapter 83 of the laws of 2002,  is  amended  to
    7  read as follows:
    8    §  2438.  Bond authorization. (1) The agency shall not issue bonds and
    9  notes in an aggregate principal  amount  at  any  one  time  outstanding
   10  exceeding one billion dollars, excluding tax lien collateralized securi-
   11  ties,  special  school  purpose  bonds,  special  school deficit program
   12  bonds, special purpose bonds, fiscal recovery bonds and notes and  bonds
   13  and notes issued to refund outstanding bonds and notes.
   14    (2)  The  agency  shall  not  issue special school purpose bonds in an
   15  aggregate principal amount in excess of: for the city of New York,  four
   16  hundred  thirty-five  million  dollars;  for  the  city of Buffalo, four
   17  million seven hundred thousand dollars; for the city of Rochester,  five
   18  million  one  hundred  thousand dollars; for the city of Syracuse, eight
   19  hundred thousand dollars; and for the city  of  Yonkers,  three  hundred
   20  thousand  dollars;  or  the amount of prior year claims that are due and
   21  payable to each such school district of each such special school purpose
   22  municipality pursuant to section thirty-six hundred four of  the  educa-
   23  tion  law.  Such  amount  shall  exclude  bonds  issued to fund any debt
   24  service reserve fund, bonds issued to refund such special school purpose
   25  bonds, bonds issued to pay the costs of issuance of such special  school
   26  purpose  bonds  and  the  amount of bonds that would constitute interest
   27  under the Internal Revenue Code of 1986, as amended.
   28    (3) The agency shall not issue special school  deficit  program  bonds
   29  (a) prior to the time the state comptroller determines the amount of the
   30  accumulated  projected  deficit  of  a  special  school  deficit program
   31  district in its general fund at the close of  its  current  fiscal  year
   32  ending  June thirtieth, two thousand two, including any budget notes and
   33  revenue anticipation notes  which  may  be  part  of  such  deficit,  as
   34  provided in a chapter of the laws of two thousand two, and (b) in aggre-
   35  gate  principal amount in excess of the lesser of (i) the amount of such
   36  deficit as determined by the state comptroller or (ii)  sixteen  million
   37  five  hundred thousand dollars, excluding bonds to fund any debt service
   38  reserve fund, bonds issued to  refund  special  school  deficit  program
   39  bonds,  bonds issued to pay the costs of issuance of such special school
   40  deficit program bonds and the amount  of  bonds  that  would  constitute
   41  interest under the Internal Revenue Code of 1986, as amended.
   42    (4)  The  agency  shall issue special purpose bonds only for a special
   43  purpose municipality as defined in subdivision  twenty-five  of  section
   44  twenty-four  hundred  thirty-two  of this title. For the special purpose
   45  municipality's fiscal year ending June  thirtieth,  two  thousand  four,
   46  such  special  purpose  bonds  may  be  issued in an aggregate principal
   47  amount not to exceed ten percent of the special  purpose  municipality's
   48  adopted  general  operating fund or funds for that year. For the special
   49  purpose municipality's fiscal year ending June thirtieth,  two  thousand
   50  five, such special purpose bonds may be issued in an aggregate principal
   51  amount  not to exceed five percent of the special purpose municipality's
   52  adopted general operating fund or funds for that year. For  the  special
   53  purpose  municipality's  fiscal year ending June thirtieth, two thousand
   54  six, such special purpose bonds may be issued in an aggregate  principal
   55  amount  not  to  exceed  two and one-half percent of the special purpose
   56  municipality's adopted general operating fund or funds  for  that  year.
       S. 1406                            263                           A. 2106
 
    1  Each  amount  issued  shall be used for the special purpose municipality
    2  and its school district purposes pursuant to a plan for the use  of  the
    3  proceeds  approved  by  the  mayor  and  board of education of each such
    4  special purpose municipality and consistent with the plans for budgetary
    5  and  management  restructuring submitted pursuant to section twenty-four
    6  hundred thirty-five-f of this title. Such plan shall be submitted to the
    7  state comptroller, the director of the  budget,  and  the  secretary  of
    8  state  with the self-evaluation required pursuant to section twenty-four
    9  hundred thirty-five-f of this title.  Such amounts shall  exclude  bonds
   10  issued  to  fund  any  debt service reserve fund, bonds issued to refund
   11  special purpose bonds, bonds issued to pay the costs of issuance of such
   12  special purpose bonds, and the amount of  bonds  that  would  constitute
   13  interest under the Internal Revenue Code of 1986, as amended.
   14    (5)  The  fixing of the statutory maximum in this section shall not be
   15  construed as constituting a contract between the agency and the  holders
   16  of  its bonds or notes that additional bonds and notes may not be issued
   17  subsequently by the agency in the  event  that  such  statutory  maximum
   18  shall subsequently be increased by law.
   19    §  133. The state finance law is amended by adding a new section 92-bb
   20  to read as follows:
   21    § 92-bb. Special purpose state aid. 1.   State aid  shall  consist  of
   22  all:
   23    (a) general purpose local government aid;
   24    (b) emergency financial aid to certain cities;
   25    (c) emergency financial assistance to eligible municipalities; and
   26    (d)  supplemental  municipal  aid  apportioned to such special purpose
   27  municipality.
   28    2. For purposes of this section, the terms state aid revenues, special
   29  purpose municipality, special purpose bonds, special purpose  state  aid
   30  revenue,  fiscal  recovery municipality, fiscal recovery bonds or notes,
   31  and fiscal recovery state aid revenues shall have the meanings set forth
   32  in section twenty-four hundred thirty-two of the public authorities law.
   33    3. Upon receipt by the comptroller of a  certificate  or  certificates
   34  from the chairperson of the state of New York municipal bond bank agency
   35  pursuant  to  section  twenty-four  hundred  thirty-six-b  of the public
   36  authorities law, the comptroller shall pay the  state  aid  revenues  to
   37  said agency, in accordance with such certification and subject to agree-
   38  ments  with  holders of outstanding special purpose bonds or outstanding
   39  fiscal recovery bonds or notes of said agency. Any such payment shall be
   40  made within thirty days of receipt of the certification or at  the  time
   41  specified  in  the  certification, whichever is later; provided that any
   42  such state aid revenues shall have been first appropriated by the  state
   43  as  state  aid  or  shall  have  been otherwise made available. Any such
   44  payment of state aid revenues to the agency shall not obligate the state
   45  to make, nor entitle such special purpose municipality or fiscal  recov-
   46  ery municipality to receive, any additional state aid.
   47    4.  Nothing  contained  in this section shall be construed to create a
   48  debt of the state within the meaning of any constitutional or  statutory
   49  provisions.  Any provision with respect to state aid or state aid reven-
   50  ues  shall  be  deemed executory only to the extent of moneys available,
   51  and no liability shall be incurred by the state beyond the moneys avail-
   52  able for that purpose, and any such payment by the comptroller of  state
   53  aid  revenues  is  subject  to  annual appropriation of state aid by the
   54  state legislature.
   55    5. Nothing contained in this section shall be deemed to  restrict  the
   56  right  of the state to amend, repeal, modify, or otherwise alter section
       S. 1406                            264                           A. 2106
 
    1  fifty-four of this chapter or any other provision relating to state  aid
    2  to  municipalities.  The  state  of  New York municipal bond bank agency
    3  shall not include within any resolution,  contract,  or  agreement  with
    4  holders  of  its  bonds  or  notes  any  provision which provides that a
    5  default occurs as a result of the state's exercising its right to amend,
    6  repeal, modify, or otherwise alter section fifty-four of this chapter or
    7  any other provision relating to state aid to municipalities.
    8    6. During the period that the comptroller is required to make payments
    9  to the state of New York municipal bond bank agency as provided in  this
   10  section,  each  special  purpose  municipality  that  has entered into a
   11  special purpose agreement and each fiscal recovery municipality that has
   12  entered into a fiscal recovery agreement shall have no right, title,  or
   13  interest in or to state aid revenues.
   14    7.  Any state aid not required to be transferred by the comptroller to
   15  the state of New York municipal bond bank agency as state  aid  revenues
   16  pursuant  to  subdivision  three of this section shall be transferred by
   17  the comptroller (a) as special purpose state aid revenue to the  special
   18  purpose municipality; or (b) as fiscal recovery state aid revenue to the
   19  fiscal recovery municipality.
   20    §  134.  Subdivision  40  of paragraph a of section 11.00 of the local
   21  finance law, as amended by chapter 837 of the laws of 1945,  is  amended
   22  to read as follows:
   23    40.  Miscellaneous  expenditures.  Any  object or purpose set forth in
   24  section 29.00 or section 29.11  of  this  chapter,  if  such  object  or
   25  purpose  is  to  be  financed  by the issuance of budget notes or budget
   26  deficiency notes, three years.
   27    § 135. Paragraph a of section  20.00  of  the  local  finance  law  is
   28  amended by adding a new subdivision 12 to read as follows:
   29    12. Budget deficiency notes.
   30    §  136. The local finance law is amended by adding a new section 29.11
   31  to read as follows:
   32    § 29.11 Budget deficiency notes. a. Any municipality, school district,
   33  or district corporation may issue budget  deficiency  notes  during  any
   34  fiscal  year  to  finance a deficiency in any fund or funds arising from
   35  revenues being less than the amount estimated  in  the  budget  for  the
   36  current  fiscal  year.    Such notes may be issued in such amount as the
   37  finance board shall determine to be necessary, but not  to  exceed  five
   38  per  centum  of  the  amount  of the annual budget of such municipality,
   39  school  district,  or  district  corporation.      Notwithstanding   the
   40  provisions  of  this  section, section 29.00 of this title, or any other
   41  inconsistent provision of law, the  aggregate  amount  of  notes  issued
   42  pursuant  to  this  section  and  section  29.00 of this title shall not
   43  exceed five per centum of the amount of the annual budget of such  muni-
   44  cipality, school district, or district corporation in any fiscal year.
   45    b.  Budget deficiency notes may be renewed from time to time, but such
   46  notes, including the renewals thereof, shall mature not later  than  the
   47  close  of the fiscal year succeeding the fiscal year in which such notes
   48  are issued. However, such notes, including  the  renewals  thereof,  may
   49  mature not later than the close of the second fiscal year succeeding the
   50  fiscal  year  in which such notes are issued, when authorized and issued
   51  during a fiscal year at a time subsequent to the date of the adoption of
   52  the annual budget for the next succeeding  fiscal  year,  by  a  munici-
   53  pality,  school  district,  or  district  corporation in which the total
   54  amount of taxes or assessments levied for a fiscal  year  is  determined
   55  pursuant  to  an  annual budget adopted during the fiscal year preceding
   56  such fiscal year.
       S. 1406                            265                           A. 2106
 
    1    c. Budget deficiency notes shall be  redeemed  out  of  the  taxes  or
    2  assessments  levied  or  to  be levied for the fiscal year in which they
    3  mature or out of other revenues of that fiscal  year  legally  available
    4  for that purpose.
    5    d.  Notwithstanding  the  provisions of any general, special, or local
    6  law, any municipality, school district, or district  corporation,  which
    7  has the power to issue budget deficiency notes under this section, shall
    8  to  the  same  extent  have  the  power  to appropriate and expend money
    9  received from the proceeds of the sale of budget  deficiency  notes  for
   10  the purposes for which such notes are issued.
   11    e.  The proceeds of such notes shall be used only to cover a deficien-
   12  cy in any fund or funds arising from revenues being less than the amount
   13  estimated in the budget for the current fiscal year or, in the event all
   14  or  a  portion  of  the  proceeds are not expended for that purpose, the
   15  amount not so expended shall be used only for the payment  of  principal
   16  of and interest on such notes.
   17    §  137.  Paragraph  d  of  section  25.00  of the local finance law is
   18  amended by adding a new subdivision 5 to read as follows:
   19    5. In determining the total amount of revenue anticipation notes which
   20  a municipality may issue, the municipality shall take into  account  and
   21  deduct from the revenue which would otherwise be deemed available pursu-
   22  ant  to  this  subdivision  the amount of any revenue which is otherwise
   23  pledged or subject to intercept in accordance  with  the  provisions  of
   24  article  four-A  of  the  general  municipal law and any fiscal recovery
   25  agreement entered into pursuant to section twenty-four  hundred  thirty-
   26  five-g of the public authorities law.
   27    §  138. The local finance law is amended by adding a new section 40.10
   28  to read as follows:
   29    § 40.10 Budget deficiency note resolution; form and contents; authori-
   30  zation thereof. a. The issuance of budget deficiency notes  or  renewals
   31  thereof  shall  be  authorized by a "budget deficiency note resolution".
   32  Each such resolution shall be properly dated  and  shall  bear  a  title
   33  which will indicate that it relates to a budget deficiency note.
   34    b.  Any  municipality,  school  district,  or district corporation may
   35  adopt one or more budget deficiency  note  resolutions  authorizing  the
   36  issuance  of  budget deficiency notes for the specific object or purpose
   37  of covering a deficiency in any fund  or  funds  arising  from  revenues
   38  being  less  than  the  amount  estimated  in the budget for the current
   39  fiscal year of the municipality, school  district,  or  district  corpo-
   40  ration.
   41    c. A budget deficiency note resolution shall contain, in substance, at
   42  least the following provisions:
   43    1.  A statement of the specific object or purpose for which the budget
   44  deficiency notes to be authorized by such resolution are to be issued.
   45    2. A statement of the amount of budget deficiency notes to be  issued,
   46  the  amount and the cause of the budget deficiency in revenues, and that
   47  no other source of financing is available.
   48    3. A statement of the period of maturity of such notes.
   49    4. If such notes are to be issued in renewal of other notes, a  state-
   50  ment that the date of maturity of such notes shall not extend beyond the
   51  applicable  period  provided  in  section  29.11 of this chapter for the
   52  maturity of such notes.
   53    § 139. If any section, part or provision of this act shall be declared
   54  unconstitutional or invalid or ineffective by  any  court  of  competent
   55  jurisdiction,  such declaration shall be limited to the section, part or
   56  provision directly involved in the controversy in which such declaration
       S. 1406                            266                           A. 2106
 
    1  was made and shall not affect any other section, provision or part ther-
    2  eof.
    3    §  140. Subdivision 7 of section 2046-c of the public authorities law,
    4  as added by chapter 632 of the laws of  1982,  is  amended  to  read  as
    5  follows:
    6    7.  There  shall  be  an  annual independent audit of the accounts and
    7  business practices of the agency performed by independent outside  audi-
    8  tors [nominated by the director of the division of the budget]. Any such
    9  auditor shall serve no more than three consecutive years.
   10    § 141. This act shall take effect immediately, except that:
   11    1.  Section  one of this act shall not apply to any public arbitration
   12  panel appointed prior to the effective date of such section;
   13    2. Sections ninety-two through ninety-five of this act shall apply  to
   14  all judgments entered and all accrued claims paid on or after such date;
   15    3.  Sections  ninety-six  through  one hundred three of this act shall
   16  take effect on the one hundred eightieth day after it shall have  become
   17  a law;
   18    4.  Sections one hundred four, one hundred five and one hundred six of
   19  this act shall take effect on the one hundred  twentieth  day  after  it
   20  shall have become law; and
   21    5.  The  amendments made to section 1735 of the public authorities law
   22  by section fifty of this act shall not affect the expiration and  repeal
   23  of such section and shall be deemed repealed therewith.
         FISCAL  NOTE.--  Sections one hundred eleven through one hundred four-
       teen of this act offer local governments additional options  in  funding
       pension costs.
         Sections  one  hundred eleven and one hundred twelve of this act amend
       the Local Finance Law to authorize bonding of  pension  costs  from  the
       2002  retirement  incentive  program and outstanding payments related to
       certain optional benefits for members of the New York  State  and  Local
       Police and Fire Retirement System. The annual pension costs of employers
       who  choose  these options will be reduced to the extent they can borrow
       at a lower interest  rate  than  the  rate  charged  by  the  retirement
       systems.
         Sections  one  hundred  thirteen  and one hundred fourteen of this act
       amend the Retirement and Social  Security  Law  to  allow  participating
       employers  in  the New York State and Local Employees' Retirement System
       and the New York State and Local Police and Fire  Retirement  System  to
       pay  any  outstanding  balance  of  employer  pension contributions with
       interest within the participating  employer's  next  two  fiscal  years.
       Participating  employer interest costs will vary depending on the amount
       and timing of outstanding balance payments.
         The source of this fiscal note is the New York State Division  of  the
       Budget.
   24    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
   25  sion,  section  or  part  of  this act shall be adjudged by any court of
   26  competent jurisdiction to be invalid, such judgment  shall  not  affect,
   27  impair,  or  invalidate  the remainder thereof, but shall be confined in
   28  its operation to the clause, sentence, paragraph,  subdivision,  section
   29  or part thereof directly involved in the controversy in which such judg-
   30  ment shall have been rendered. It is hereby declared to be the intent of
   31  the  legislature  that  this  act  would  have been enacted even if such
   32  invalid provisions had not been included herein.
   33    § 3. This act shall take effect immediately  provided,  however,  that
   34  the applicable effective date of Parts A through EE of this act shall be
       S. 1406                            267                           A. 2106
 
    1  as  specifically  set  forth  in the last section of such Parts.  
 
    2