2005-2006 NEW YORK STATE EXECUTIVE BUDGET
ECONOMIC DEVELOPMENT AND
ENVIRONMENTAL CONSERVATION
ARTICLE VII LEGISLATION
MEMORANDUM IN SUPPORT

CONTENTS

MEMORANDUM IN SUPPORT

A BUDGET BILL submitted by the Governor in Accordance with Article VII of the Constitution

AN ACT to amend chapter 728 of the laws of 1982 and chapter 710 of the laws of 1983 amending the executive law relating to community services block grants programs, in relation to the effectiveness of such chapters (PART A); to amend the racing, pari-mutuel wagering and breeding law, the tax law, the agriculture and markets law and the penal law, in relation to regulation of gaming activities and horse racing and breeding within the state, and to revise the amount of the fee assessed for regulatory activities; to amend the tax law, in relation to video lottery gaming; and to repeal certain provisions of the racing, pari-mutuel wagering and breeding law relating to the state racing and wagering board, capital investment fund and horse breeding and development funds and section 1617-a of the tax law relating to video lottery gaming (PART B); to amend the insurance law, in relation to increasing the service of process fee (PART C); to amend the environmental conservation law and the vehicle and traffic law, in relation to the use of all terrain vehicles on certain public lands, providing for state assistance payments for all terrain vehicle trail development and maintenance fund and the enforcement of the operation of all terrain vehicles and registration of such vehicles and to repeal subdivision 12 of section 2282 of the vehicle and traffic law relating to out of state registration of all terrain vehicles (PART D); to amend chapter 21 of the laws of 2003, 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 corporations and to permit additional levels of such expedited service, in relation to extending such provisions (PART E); to amend the insurance law, in relation to increasing the licensing fees for certain agents, brokers and reinsurance intermediaries (PART F); to amend the agriculture and markets law, in relation to the powers and duties of the department of agriculture and markets with respect to retail food stores and food establishments (PART G); to amend the agriculture and markets law, in relation to maximum penalties (PART H); to provide for the utilization of utility assessment funds (PART I); to authorize the New York state urban development corporation, the dormitory authority of the state of New York, the environmental facilities corporation, the New York state housing finance agency and the thruway authority to issue bonds or notes in support of the New York sports and convention center (PART J); to authorize the dormitory authority of the state of New York to provide funding for the Cornell University theory center (PART K); to amend the agriculture and markets law, in relation to the powers and duties of the department of agriculture and markets with respect to the inspection of pet dealers' facilities (PART L); to amend the environmental conservation law, in relation to operating permit program fees (PART M); to provide for the utilization of utility assessment funds (PART N); to authorize the New York state urban development corporation, the dormitory authority of the state of New York, the environmental facilities corporation, the New York state housing finance agency and the thruway authority to issue bonds or notes in support of priority high technology and economic development projects (PART O); to amend the environmental conservation law, in relation to extending pesticide registration time frames and fees; to amend chapter 67 of the laws of 1992, amending the environmental conservation law relating to pesticide product registration timetables and fees, in relation to the effectiveness of such provisions; and to repeal section 33-0706 of the environmental conservation law relating thereto (PART P); to amend chapter 393 of the laws of 1994, amending the New York state urban development corporation act, in relation to the effectiveness thereof (PART Q); to amend the environmental conservation law and the state finance law, in relation to freshwater wetlands and to repeal certain provisions of the environmental conservation law relating thereto, and to repeal title 11 of article 24 of the environmental conservation law, relating to the freshwater wetlands appeals board (PART R); to amend the state finance law, the environmental conservation law and the tax law, in relation to expanding the purposes for which the environmental protection fund can be used, in relation to municipal landfill closure projects and state assistance payments for beneficial end-uses and land fill gas management systems, in relation to establishing an environmental justice technical assistance grant program, in relation to municipal assistance for quality communities projects, and in relation to allowing for additional deposits to be made to the environmental protection fund; and to repeal certain provisions of the state finance law relating thereto (PART S); and to provide for the transfer of moneys from the New York state energy research and development authority (PART T)

PURPOSE:

This bill contains provisions needed to implement the Economic Development and Environmental Conservation portions of the 2005-06 Executive Budget.

SUMMARY OF PROVISIONS, EXISTING LAW, PRIOR LEGISLATIVE HISTORY AND STATEMENT IN SUPPORT:

Part A – Extend the Department of State’s authorization to administer the Federal Community Services Block Grant program.

This bill would amend the Executive Law relating to the extension of the laws enacting the Community Services Block Grants Program.

This bill makes permanent the statutes governing the Department of State’s (DOS) Federal Community Service Block Grants (CSBG).

Part B – Create the New York State Gaming Commission to oversee video lottery gaming, horse racing and tribal State compacts, and increase the regulatory fee on horse racing. Increase the video lottery payments to education from 61 percent to 90 percent of net machine income and permit eight new facilities to be licensed.

This bill amends the Racing, Pari-Mutuel Wagering and Breeding Law, the Tax Law and the Agriculture and Markets Law, in relation to the regulation of gaming activities and horse racing and breeding within the State. This bill also repeals certain provisions of the Racing, Pari-Mutuel Wagering and Breeding Law that relate to the State Racing and Wagering board, the Capital Investment Fund and the Horse Breeding and Development Fund.

This bill creates the New York State Gaming Commission which would be charged with the oversight of all gaming activities in the State. The creation of the Gaming Commission will allow the continued increase of gaming revenues by ensuring the integrity of gaming activities in the State. The Commission would assume the responsibilities of the New York State Racing and Wagering Board, as well as certain existing Division of Lottery and Division of State Police gaming activities. This bill changes the financial structure of the Video Lottery Terminal (VLT) program by establishing a General Fund mechanism to pay VLT vendor fees. The bill also creates a Non Profit Racing Association Oversight Board to monitor the State’s financial interest in its racing franchise.

Finally, this bill increases the rate of the State's Racing Regulatory fee from .39 percent to .50 percent on all wagers placed within the State. Despite aggressive cost containment measures instituted over the past two years, the State's expenditures in support of racing regulation exceeded the level of fee revenues. The rate increase proposed within this bill will provide for fee revenues at a level equivalent to the program's annual regulatory costs and will obviate the need for General Fund financing of the State's racing regulatory activities. An earlier version of this bill, without the racing fee increase, was passed by the Senate in June 2004 after being introduced at the request of the Governor.

Part C – Increase Insurance Department service of process fees.

The Insurance Law authorizes the Superintendent to receive legal proceedings (“service of process”) on behalf of regulated insurance companies. This bill increases the fee associated with such service from $20 to $40.

This bill amends sections 1212 and 1213 of the Insurance Law to increase the service of process fee for affected parties from $20 to $40.

This bill increases Insurance Department service of process fees – which have not changed since 1984 – to a level consistent with similar fees charged by the Department of State.

Part D – Increase all-terrain vehicle (ATV) registration fees and establish ATV program.

This bill sets forth requirements and limitations regarding the use of All Terrain Vehicles (ATV) on certain public lands, and on the enforcement of ATV requirements. The bill also establishes a State assistance program for ATV trail development, maintenance and enforcement, and increases ATV registration fees to provide revenues to support these programs and to provide General Fund relief.

This bill amends the Environmental Conservation Law (ECL) and Vehicle and Traffic Law (VTL) to set forth requirements for the use of ATVs on State lands under the jurisdiction of the Department of Environmental Conservation (the Department) including forest preserve lands both inside and outside of the Adirondack and Catskill Parks, and to increase ATV registration fees. The bill:

• Amends the ECL § 1-0303 to provide that the terms “all-terrain vehicle,” “motor vehicle,” “private highway” and “public highway” will have the same meanings as set forth in VTL.
• Amends the ECL § 9-0303 to:
  • Limit the public use of ATVs on forest preserve lands inside and outside of the Adirondack and Catskill Parks, and on other lands under the jurisdiction of the Department;
  • Require that the use of ATVs on lands under the jurisdiction of the Department in the Adirondack and Catskill Parks must comply with the respective State Land Master Plans for these Parks;
  • Prohibit the use of ATVs in wildlife management areas under the control of the Department except for public highways opened under provisions of the VTL § 2404;
  • Authorize the use of ATVs on trails and private roads on conservation easements held by the Department and on State lands other than the forest preserve, wildlife management areas and conservation easement lands and;
  • Provide for the use of ATVs by persons with disabilities and for administrative, law enforcement, and emergency purposes.
• Amends the ECL § 58-0101 to establish a State assistance program for ATV trail development and maintenance on lands owned by local government and private parties, and on Department easement lands. In addition, specifies the parameters of the program and authorizes the Commissioner to adopt related rules and regulations as necessary.
• Amends the VTL § 2282 and § 2283 to provide that:
  • Every ATV shall be registered at the time of sale;
  • Non-residents using ATVs in New York State must be registered in New York State;
  • Establish for resident and non–resident registration fees at $45 per year to be deposited to the General Fund;
  • Provide that the Department of Motor Vehicles will be responsible for providing an ATV trail map and user guide (developed by the Department) to everyone registering an ATV;
  • Require permanent registration plate on the back of the ATV; and
  • Authorize a county, city, town or village to adopt or amend local law or ordinance that is more restrictive than the provisions of this bill.

Chapter 402 of the Laws of 1986 established ATV registration fees. Current law sets an annual fee of $10 for both residents and non-residents for the registration of ATVs and does not provide for an ATV trail development and maintenance program. Requirements regarding the public use of ATVs inside of the Adirondack and Catskill Parks are found in the Adirondack Park State Land Master Plan and Catskill Park State Land Master Plan, respectively, but are not in current statute. In fact, there are no specific statutory provisions relating to the use of ATVs on state lands under the jurisdiction of the Department, other than generic provisions in the VTL. Existing law does not require that non-residents using ATVs in New York State be registered in New York.

There is increasing demand from those who ride ATVs that the State provide legally authorized ATV riding opportunities. At the same time, illegal ATV traffic on public and private lands in the State has increased and caused significant environmental degradation.

This bill addresses both of these important issues. First, it provides for a program of ATV trail development and maintenance in environmentally appropriate areas owned by local governments and private parties, and on environmentally appropriate easement lands held by the Department, and for ATV education and enforcement upon the appropriation of funds by the Legislature. Second, it increases potential penalties for the illegal operation of ATVs. Additionally, the bill requires the development and distribution of ATV trail maps, which are expected to result in a reduction of ATVs on unauthorized locations.

Part E – Extend the Department of State fees for special handling of information and licensing requests.

This bill extends legislation permitting the Secretary of State to charge increased fees for the expedited handling of documents issued by or requested from the Department’s Division of Corporations.

The Executive Law currently authorizing the Secretary of State to charge increased fees for expedited handling expires on March 31, 2005. Historically this statute has been extended annually to coincide with the enactment of the budget. To avoid complications of a sunset occurring simultaneously with the State Fiscal Year, the proposed legislation would sunset on September 30, 2006.

Part F – Increase license fees for insurance agents and brokers.

This bill amends the Insurance Law to increase license fees for Property and Casualty Agents and Brokers; Life Agents and Brokers; and non-resident Reinsurance Intermediaries.

In addition, the bill changes license expiration dates to coincide with a licensee’s date of birth for Property and Casualty Agents and Brokers; Life Agents and Brokers; Reinsurance Intermediaries; Excess Line Brokers; and Insurance Consultants.

Sections 1112, 2103, and 2104 of the Insurance Law are amended to increase annual license fees for Property and Casualty Agents and Brokers, as well as Life Agents and Brokers, from $20 to $40. Late filing fees are also increased from five to ten dollars.

Section 2106 of the Insurance Law is amended to increase the non-resident Reinsurance Intermediary (i.e. “Reinsurance Broker or Agent”) license fee from $100 to $500 annually. This increase would equalize the non-resident and resident fees.

Lastly, Sections 2103, 2104, 2105, 2106, and 2107 of the Insurance Law are amended to align license expiration dates with the licensee’s date of birth beginning January 1, 2007.

As proposed, the license fee increases for Property and Life Agents and Brokers would still be considerably less than peer states (e.g. New Jersey = $170 biennially; California = $112 biennially; Massachusetts = $133 biennially). New York State license fees have not changed since 1984. The license expiration date change is consistent with the State Uniformity Standards recommendation of the National Association of Insurance Commissioners (NAIC).

Part G – Repeal the requirement for mandatory annual food safety inspections and authorize the Department of Agriculture and Markets to conduct inspections on a risk-based frequency.

This bill achieves efficiencies in the inspection of retail food stores, and requires preventive measures to better protect the safety of the State’s food supply.

This bill amends the Agriculture and Markets Law (AML) to:

• Provide for inspections of retail food stores on a risk based frequency determined by establishment size, type of food offered for sale and other factors that may affect public health. In addition, stores would continue to be inspected when there are complaints and on a random basis.
• Add a new article, 20-B, relating to food security that defines what businesses are regulated and require the affected operators to take preventive measures, prescribed by the Commissioner by regulation after public hearing, to minimize the risk of food being subjected to tampering or criminal or terrorist actions.

Subdivision 4 of section 500 of the AML requires the Department to perform annual inspections of Type VI establishments that pose little or no threat to public health, resulting in over 10,000 additional annual inspections. This provision was introduced in 2004 and not enacted. Amendment of this provision to permit the inspection of food stores in accordance with a risk based frequency established by the Commissioner and determined by establishment size, type of food offered for sale and other factors that may affect public health, would remove a significant workload and expense for the Department without posing a risk to public health and safety. Stores would also continue to be inspected when there are complaints and on a random basis.

The provision that would authorize the Commissioner to establish preventative measures for food establishments, retail food stores and food warehouses will help ensure a safe and wholesome food supply for the health and well being of the citizens of the State and protect the economic viability of the State’s food industry.

Part H – Increase penalties for food and other health violations.

This bill increases the penalties for findings of a critical health deficiency during inspections of food and other businesses to encourage compliance with statutes and regulations.

This bill amends the Agriculture and Markets Law (AML) to:

• Increase the maximum penalty of the second and each subsequent violation of AML from six hundred to one thousand dollars.
• Increase the maximum penalty of the first violation of a rule or order from two hundred to three hundred dollars and increase the maximum penalty of the second and each subsequent violation of a rule or order from four hundred to one thousand dollars.

Section 39 of AML allows the Department of Agriculture and Markets (the Department) to fine various businesses up to three hundred dollars for the first finding of a critical health deficiency related to AML and up to six hundred dollars for the second and each subsequent finding. Section 40 of AML allows the Department to fine (primarily violations related to food safety) up to two hundred dollars for the first finding of a critical health deficiency related to a rule or order of the Department and up to four hundred dollars for the second and each subsequent finding.

Currently, the Department issues a warning letter on the first finding of a critical health deficiency, fines three hundred dollars for the second finding, and six hundred dollars for the third and each subsequent finding.

This proposal will allow the Department to increase penalties for health violations for the first time since 1990 (section 39) and 1968 (section 40). This change is in conjunction with more assertive enforcement actions as stipulated by the Division of Food Safety and Inspection’s “Legal Action Protocol.” The Department will now begin instituting fines of three hundred dollars for the first violation instead of issuing a warning letter and one thousand dollars for the second and each subsequent violation. These penalties are intended to enhance compliance. As the threat of foodborne illness outbreak continues to place public health at risk, it is necessary to increase the fines in relation to the increase in the cost of operating a food-related business. Otherwise, business owners may not have enough incentive to correct the deficiency.

Part I – Authorize certain State agencies to finance their activities with revenues from assessments on public utilities and cable companies.

This bill provides authorization to certain State agencies to finance their activities with revenues generated from assessments on public utilities and cable television companies.

This bill authorizes certain expenditures of the Department of Health as eligible expenses for cable television assessment revenue. Sections 2 through 7 authorize certain expenditures for the departments of Agriculture and Markets, Economic Development, Environmental Conservation, the Office of Parks, Recreation and Historical Preservation, the Consumer Protection Board and the Office of Homeland Security as eligible expenses for utility assessment revenue.

Section 18-a of the Public Service Law authorizes the Department of Public Service (DPS) to assess public utility companies for the costs associated with the operations of the Public Service Commission (PSC) and the DPS. Section 217 of the Public Service Law authorizes the DPS to assess cable television companies for costs associated with the operations of the PSC and DPS. Chapter 59 of the Laws of 2004 provided similar authorization.

This bill ensures that the affected agencies will be able to expend utility assessment funds on critical State programs.

Part J – Provide authorization for $300 million in support of the New York Sports and Convention Center.

This bill authorizes the New York State Urban Development Corporation (UDC), or other public authorities if appropriate, to issue $300 million in bonds to finance the State's share of construction costs for the New York City Sports and Convention Center.

This new bill authorizes UDC, or other eligible issuers, to issue up to $300 million to support the State's share of construction costs for the New York City Sports and Convention Center. State funding will assist in the construction of a 2.2 million square foot facility that will house a 75,000 seat stadium and 180,000 square feet of exhibition space on New York City's West Side, adjacent to the Javits Convention Center. This new facility will serve as additional convention space for the Javits Convention Center and will enhance New York City's ability to host sporting and other events.

Part K – Authorize funding for the Cornell Supercomputer.

This bill authorizes the Dormitory Authority to provide up to $1.2 million to Cornell University to support operations of the Cornell Theory Center for fiscal year 2005-06.

Chapter 59 of the Laws of 2004 authorized the Dormitory Authority to provide up to $1.2 million for the support of the Cornell Theory Center.

Similar legislation has been enacted since 1997-98.

The Cornell Theory Center provides business and academia with affordable access to the latest in supercomputer technology. This bill will enable the Center to continue to deliver these services, while providing the Dormitory Authority with the opportunity to avail itself of the resources of Cornell University to address financial and labor management issues.

Part L – Eliminate the annual inspection requirement for pet dealers’ facilities and authorize the Department of Agriculture and Markets to conduct inspections on a risk-based frequency.

This bill eliminates the annual inspection requirement for pet dealers’ facilities and permits the Department of Agriculture and Markets to conduct risk based inspections.

This bill eliminates the requirement that pet dealers be inspected by the Department of Agriculture and Markets annually. The Department would retain its authority to inspect such pet dealer facilities and could schedule inspections based on the risk of non-compliance posed by a facility or after a complaint is received. Existing law, enacted in 2000, requires an annual inspection of every pet dealer, except those who engage in the sale of less than twenty-five animals in a year. This bill was introduced in 2004 but was not enacted. This bill permits the Department to schedule inspections in accordance with a risk-based assessment as determined by the Commissioner. Standards for such an assessment include the size, nature of operations and the inspection history of a particular operation. Thus, the Department’s resources would be better focused on the pet dealer facilities that pose the risk of non-compliance. Existing law also requires that facilities be inspected before a license is issued. This bill would continue such inspections in order to ensure that pet dealers do not receive authority to operate unless their facilities have been found to comply with the applicable laws and regulations.

Part M – Increase Title V operating permit program emission fees on stationary sources of air pollution.

This bill increases the maximum Title V facility per ton operating permit fee on regulated air contaminates from $45 to a maximum of $58 and establishes a minimum fee of $1,250 per operating permit facility.

This bill amends the Environmental Conservation Law (ECL) to authorize the increase of fees and establish minimum fees. The bill amends ECL §72-303, to increase fees from $45 per ton to a maximum of $58 per ton of regulated air contaminants and establish minimum fees of $1,250 per facility. Enactment will allow the Department of Environmental Conservation to continue effective oversight of facilities regulated pursuant to Title V of the Federal Clean Air Act.

Part N – Authorize assessments on utilities to be used for New York State Energy Research and Development Authority research and development costs.

This bill authorizes the New York State Energy Research and Development Authority (NYSERDA) to obtain revenue for certain of its programs from assessments on gas corporations and electric corporations, pursuant to section 18-a of the Public Service Law.

The bill authorizes NYSERDA to finance its Research, Development and Demonstration Program and its Policy and Planning Program with revenues from assessments on gas corporations and electric corporations. Section 18-a of the Public Service Law enables the Department of Public Service to assess gas corporations and electric corporations for the expenses of these programs. This is an Article VII provision that is annually authorized and was last enacted as Chapter 59 of the Laws of 2004. Without this legislation, NYSERDA could not continue operating necessary energy programs in the 2005-06 State fiscal year.

Part O – Authorize Urban Development Corporation bonding for the Technology and Development program.

This bill establishes a new $250 million New York State Technology and Development Program to be administered by the New York State Urban Development Corporation (UDC), and authorizes UDC, or other public authorities if appropriate, to issue bonds to finance the program.

This new bill allows the State to make important financial contributions to support priority high technology and economic development projects across the State. State funding will also be targeted to major projects that will create significant regional economic development benefits.

Part P – Extend pesticide registration fees.

This bill extends the expiration date for the registration of pesticides with the New York State Department of Environmental Conservation from July 1, 2005 to July 1, 2008.

This bill amends the Environmental Conservation Law to extend the expiration date for the registration of pesticide products. The 2002-03 Enacted Budget included a pesticide fee increase, and program enhancements which included additional staff. The 2003-04 Enacted Budget changed the collection frequency of commercial applicator and technician fees to once a year. The 2004-05 Enacted Budget changed this frequency to every three years providing the Department with additional flexibility in operating the pesticide program. Section 32-0706 is recommended to be repealed as its provisions are no longer applicable.

Part Q – Make permanent the general loan powers of the New York State Urban Development Corporation.

This bill makes permanent the general loan powers of the New York State Urban Development Corporation (UDC).

Chapter 393 of the Laws of 1994, as amended by Section 1 of Part N of Chapter 59 of the Laws of 2004, provides the UDC with the general power to make loans until July 1, 2005.

Several similar bills repealing the sunset provision have previously been introduced, but not enacted. Provisions to extend the sunset date were enacted in 1997, 1998, 2000, 2002, 2003, and 2004.

This bill is necessary to extend the UDC’s general loan powers. Absent enactment of this bill, the UDC will only be able to make loans in connection with certain State-funded economic development programs that include loan authorization.

Part R – Establish a new Wetlands program and permit fees.

This bill would amend the Environmental Conservation Law (ECL) to strengthen protection for certain freshwater wetlands smaller than 12.4 acres in size, increase penalties for freshwater wetlands violations, establish permit application fees, and update certain other provisions.

Under current law, freshwater wetlands that are contiguous to waters of the United States or a tributary of the waters of the United States are regulated by the United States Army Corps of Engineers (the “Corps”). The Department of Environmental Conservation (DEC) regulates all freshwater wetlands in the State that are 12.4 acres or larger and are mapped by the DEC staff. Recent court decisions have curtailed the jurisdiction of the Army Corps of Engineers over freshwater wetlands that are smaller than 12.4 acres and are hydrologically isolated from waters of the United States. A potential gap in protection of such wetlands has resulted. Accordingly, this bill will address the regulatory gap by allowing the DEC to regulate freshwater wetlands less than 12.4 acres that meet one or more of the following criteria, specifically, that they: 1) are deemed to have unusual local significance, or 2) are isolated from waters of the United States. The bill will continue the mapping of freshwater wetlands and the posting of wetlands maps electronically. The Adirondack Park Agency will regulate wetlands that are located within the Adirondack Park and meet the definitions contained in Article 22 of the Executive Law. The bill further enumerates the purposes of freshwater wetlands protection to include protection of endangered, threatened, rare or exemplary species of plants and animals.

The bill includes several other provisions, including:

• Increasing maximum civil penalties for the violation of wetlands regulations from $3,000 to $10,000;
• Increasing maximum criminal penalties for the violation of wetlands regulations from $1,000 to $5,000 for first violations and $2,000 to $10,000 for subsequent violations;
• Eliminating the Freshwater Wetlands Appeals Board;
• Establishing freshwater permit fees of $50 for minor projects and $100 for major projects. In addition, tidal wetland permits are established and fees not to exceed $200 for minor projects and not to exceed $900 for major projects are established;
• Allowing wetlands maps to be posted electronically on the internet; and
• Including subdivision of land containing freshwater wetlands or within 100 feet of wetlands on the list of regulated activities that require a permit.

The provisions of this bill are necessary to ensure that freshwater wetlands are effectively regulated to preserve drinking water quality, assure flood control and protect ecologically sensitive areas.

Part S – Authorize additional purposes for the Environmental Protection Fund.

This bill amends the Environmental Protection Act of 1993 to expand the purposes for which the Environmental Protection Fund (EPF) may be used.

This bill amends the Environmental Conservation Law and the State Finance Law to permanently authorize the EPF to be used for additional purposes including: State Parks and Lands Infrastructure projects to preserve, improve, or rehabilitate State Parks and lands resources; assessment of natural resource damages in the Hudson River; implementation of the Hudson River Estuary Management Plan; County Soil and Water Conservation District activities; the Hudson River Park project; and Historic Barns projects. It also would authorize funding from the EPF for beneficial end-use projects at closed municipal landfills and for municipal landfill gas management projects at active landfills, environmental justice projects, and grants associated with the Quality Communities program. Additionally, Tax Law is amended to allow, at the direction of the Director of the Budget, an amount of up to $25 million in additional Real Estate Transfer Tax (RETT) revenues to be deposited into the EPF.

The Environmental Protection Act of 1993 established the EPF as a dedicated fund comprised of revenues from: 1) proceeds from the sale/lease of certain State lands; 2) annual service charges on conservation license plates; 3) proceeds from the settlement of a lawsuit brought by the State for an oil spill on Long Island; 4) interest earnings; and 5) a portion of the State’s revenues from the RETT.

Under existing law, the EPF may be used for the following purposes, pursuant to appropriation:

• Non-hazardous municipal landfill closure projects;
• Municipal waste reduction and recycling;
• Secondary materials marketing grants;
• Local solid waste management planning grants;
• Local park, recreation and historic preservation projects;
• Waterfront revitalization plans and projects;
• Coastal rehabilitation projects;
• Open space protection projects;
• The Long Island Pine Barrens Commission, the Albany Pine Bush Preserve Commission and the Long Island South Shore Estuary Reserve;
• Biodiversity stewardship and research;
• County agricultural and farmland protection plans and projects;
• Non-point source water pollution control and abatement projects; and
• The Pesticide Database Registry.

The EPF will become an even more effective tool for the benefit of New Yorkers and their environment with the flexibility of permanent authorization for programs addressing critical needs.

Similar bills have been introduced annually with the Executive Budget, and statutory authorization has been previously enacted for various programs, including the Long Island Central Pine Barrens and South Shore Estuary Reserve Planning programs, the Pesticide Data Base, and Waste Prevention Programs

Part T – Authorize the New York State Energy Research and Development Authority to make payments to the General Fund and the Environmental Conservation Special Revenue Fund.

This bill authorizes the New York State Energy Research and Development Authority (NYSERDA) to make payments to the General Fund and the Environmental Conservation Special Revenue Fund.

This bill authorizes NYSERDA to make a $913,000 payment to the General Fund from unrestricted corporate funds, a $330,000 payment to the Department of Environmental Conservation Special Revenue Fund Low-Level Radioactive Waste Account from funds rebated to New York from the Federal government as well as the transfer of $120,000 in interest from Low-Level Radioactive Waste accounts to the General Fund. The Authority has the authorization to establish, assess and collect fees for costs associated with the disposal of low-level radioactive waste generators in New York. Current law does not enable NYSERDA to make a deposit to the State without specific authorization. Chapter 59 of the Laws of 2004 provided a one year similar authorization. Without this bill, NYSERDA could not make these contributions. The $913,000 transfer will help offset New York State's debt service requirements relating to West Valley.

BUDGET IMPLICATIONS:

Part A – Extend the Department of State’s authorization to administer the Federal Community Services Block Grant program.

Enactment of this bill is needed to implement the 2005-06 Executive Budget.

Part B – Create the New York State Gaming Commission to oversee video lottery gaming, horse racing and tribal State compacts, and increase the regulatory fee on horse racing. Increase the video lottery payments to education from 61 percent to 90 percent of net machine income and permit eight new facilities to be licensed.

Enactment of this bill is necessary to implement the 2005-06 Executive Budget because it will enhance public confidence regarding the integrity of the State’s various gaming initiatives.

Part C – Increase Insurance Department service of process fees.

Enactment of this bill is necessary to implement the 2005-2006 Executive Budget which assumes $1.4 million of additional General Fund revenue as a result of this action.

Part D – Increase all-terrain vehicle (ATV) registration fees and establish ATV program.

Enactment of this bill is necessary to implement the 2005-06 Executive Budget. The ATV registration fee increase will provide approximately $5.8 million of additional revenue, of which $850,000 will be used to establish an ATV program and $4,950,000 will be used for General Fund relief.

Part E – Extend the Department of State fees for special handling of information and licensing requests.

Enactment of this bill is necessary to implement the 2005-06 Executive Budget because the costs associated with the expedited handling are greater than traditional requests. Therefore, failure to enact this legislation will result in the Department bearing additional expenditures with no additional revenue available to support these costs.

Part F – Increase license fees for insurance agents and brokers.

Enactment of this bill is necessary to implement the 2005-2006 Executive Budget, which assumes $2.5 million of additional General Fund revenue as a result of these actions.

Part G – Repeal the requirement for mandatory annual food safety inspections and authorize the Department of Agriculture and Markets to conduct inspections on a risk-based frequency.

Enactment of this bill is necessary to implement the 2005-06 Executive Budget, which includes $1.1 million in related General Fund savings as a result of the inspection of food stores in accordance with a risk based frequency established by the Commissioner.

Part H – Increase penalties for food and other health violations.

Enactment of this bill is necessary to implement the 2005-2006 Executive Budget because the increase in penalties is expected to provide an additional $1.1 million in revenues for the General Fund.

Part I – Authorize certain State agencies to finance their activities with revenues from assessments on public utilities and cable companies.

Enactment of this bill is necessary to implement the 2005-06 Executive Budget because it ensures the recovery of expenses incurred by the departments of Health, Agriculture and Markets, Economic Development, Environmental Conservation, the Office of Parks, Recreation and Historical Preservation, the Consumer Protection Board and the Office of Homeland Security.

Part J – Provide authorization for $300 million in support of the New York Sports and Convention Center.

Enactment of this bill is necessary to implement the 2005-06 Executive Budget, which assumes that $300 million will be provided to support the construction of the New York City Sports and Convention Center.

Part K – Authorize funding for the Cornell Supercomputer.

Enactment of this bill is necessary to implement the 2005-06 Executive Budget, which assumes that the Dormitory Authority will provide up to $1.2 million to Cornell University for operation of the Cornell Theory Center.

Part L – Eliminate the annual inspection requirement for pet dealers’ facilities and authorize the Department of Agriculture and Markets to conduct inspections on a risk-based frequency.

Enactment of this bill is necessary to implement the 2005-2006 Executive Budget which includes $300,000 in General Fund savings related to the inspection of pet breeders and dealers in accordance with a risk based frequency established by the Commissioner.

Part M – Increase Title V operating permit program emission fees on stationary sources of air pollution.

Enactment of this bill is necessary to implement the 2005-06 Executive Budget. The increase of the Title V Operating Permit fee to a maximum of $58 per ton and establishing a minimum permit fee per facility, will increase revenues by $3,614,000 for State Fiscal Year 2005-06 and allow the Clean Air Fund Operating Permit Account to remain in balance.

Part N – Authorize assessments on utilities to be used for New York State Energy Research and Development Authority research and development costs.

Enactment of this bill is necessary to implement the 2005-06 Executive Budget because it authorizes expenditures of section 18-a moneys for NYSERDA. A $14.7 million appropriation is included in NYSERDA's budget for these energy programs.

Part O – Authorize Urban Development Corporation bonding for the Technology and Development program.

Enactment of this bill is necessary to implement the 2005-06 Executive Budget, which assumes that a new $250 million economic development capital program will be established and financed with public benefit corporation bond proceeds.

Part P – Extend pesticide registration fees.

The extension of the pesticide product expiration date to July 1, 2008 will preserve $1.8 million in recurring revenues for State fiscal year 2005-06.

Part Q – Make permanent the general loan powers of the New York State Urban Development Corporation.

Enactment of this bill is necessary to implement the 2005-06 Executive Budget, which assumes that UDC will provide certain economic development assistance through loans, rather than grants. Absent this legislation, the Corporation could not fund loans approved through the Metropolitan Economic Revitalization Fund.

Part R – Establish a new Wetlands program and permit fees.

Enactment of this bill is necessary to implement the 2005-2006 Executive Budget. The proposed legislation will generate $1,000,000 in new revenues in 2005-06, which are required to cover the new personal service expenditures associated with implementation of the program.

Part S – Authorize additional purposes for the Environmental Protection Fund.

Enactment of this bill is necessary to implement the 2005-2006 Executive Budget, which includes EPF appropriations for State Parks and Lands Infrastructure and Stewardship projects, the Hudson River Park, Historic Barns, the Hudson River Estuary, and other important environmental efforts. Moreover, the Executive Budget appropriates $150 million for EPF initiatives, which requires enactment of the provision to increase permissible deposits to the Fund.

Part T – Authorize the New York State Energy Research and Development Authority to make payments to the General Fund and the Environmental Conservation Special Revenue Fund.

Enactment of this bill is necessary to implement the 2005-06 Executive Budget because it ensures that NYSERDA will make these payments to the General Fund and the Environmental Conservation Special Revenue Fund as contemplated in the Financial Plan.

EFFECTIVE DATE:

Part A – Extend the Department of State’s authorization to administer the Federal Community Services Block Grant program.

This bill takes effect immediately and shall be deemed to be in effect on and after September 30, 2004.

Part B – Create the New York State Gaming Commission to oversee video lottery gaming, horse racing and tribal State compacts, and increase the regulatory fee on horse racing. Increase the video lottery payments to education from 61 percent to 90 percent of net machine income and permit eight new facilities to be licensed.

This bill takes effect ninety days following enactment.

Part C – Increase Insurance Department service of process fees.

This bill takes effect immediately.

Part D – Increase all-terrain vehicle (ATV) registration fees and establish ATV program.

This bill takes effect immediately.

Part E – Extend the Department of State fees for special handling of information and licensing requests.

This bill takes effect April 1, 2005.

Part F – Increase license fees for insurance agents and brokers.

This bill takes effect immediately for fee increases. Aligning license expiration dates with licensee birthdays, takes effect January 1, 2007.

Part G – Repeal the requirement for mandatory annual food safety inspections and authorize the Department of Agriculture and Markets to conduct inspections on a risk-based frequency.

This bill takes effect immediately.

Part H – Increase penalties for food and other health violations.

This bill takes effect immediately.

Part I – Authorize certain State agencies to finance their activities with revenues from assessments on public utilities and cable companies.

This bill takes effect April 1, 2005.

Part J – Provide authorization for $300 million in support of the New York Sports and Convention Center.

This bill takes effect April 1, 2005.

Part K – Authorize funding for the Cornell Supercomputer.

This bill takes effect April 1, 2005.

Part L – Eliminate the annual inspection requirement for pet dealers’ facilities and authorize the Department of Agriculture and Markets to conduct inspections on a risk-based frequency.

This bill takes effect immediately.

Part M – Increase Title V operating permit program emission fees on stationary sources of air pollution.

This bill takes effect immediately.

Part N – Authorize assessments on utilities to be used for New York State Energy Research and Development Authority research and development costs.

This bill takes effect April 1, 2005.

Part O – Authorize Urban Development Corporation bonding for the Technology and Development program.

This bill takes effect April 1, 2005.

Part P – Extend pesticide registration fees.

This bill takes effect April 1, 2005.

Part Q – Make permanent the general loan powers of the New York State Urban Development Corporation.

This bill takes effect April 1, 2005.

Part R – Establish a new Wetlands program and permit fees.

This bill takes effect immediately.

Part S – Authorize additional purposes for the Environmental Protection Fund.

This bill takes effect April 1, 2005.

Part T – Authorize the New York State Energy Research and Development Authority to make payments to the General Fund and the Environmental Conservation Special Revenue Fund.

This bill takes effect April 1, 2005.