2005-2006 NEW YORK STATE EXECUTIVE BUDGET
PUBLIC PROTECTION AND GENERAL GOVERNMENT
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 the penal law, in relation to aggregate weight standards for controlled substance offenses (Part A); to amend chapter 152 of the laws of 2001, amending the military law relating to military funds of the organized militia, in relation to extending the effectiveness of such provisions (Part B); to amend chapter 268 of the laws of 1996, amending the education law and the state finance law relating to providing a recruitment incentive and retention program for certain active members of the New York army national guard, New York air national guard, and New York naval militia, in relation to extending the effectiveness of such chapter (Part C); to amend the executive law, in relation to violation of parole, conditional release or post-release supervision (Part D); to amend chapter 62 of the laws of 2003 amending the insurance law and other laws relating to motor vehicle law enforcement fees, in relation to extending the expiration and repeal thereof; and to amend chapter 56 of the laws of 2004 amending the insurance law and the state finance law relating to motor vehicle law enforcement fees, in relation to extending the expiration and repeal thereof (Part E); to amend chapter 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 officers, 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 facilities, 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 certain provisions 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 certain provisions of such chapter; to amend chapter 554 of the laws of 1986, amending the correction law and the penal law relating to providing for community 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 incarceration fee, in relation to extending the expiration of certain provisions 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 certain provisions 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 certain provisions of such chapter; to amend the vehicle and traffic law, in relation to extending the expiration of the mandatory surcharge and victim assistance fee; 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 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; to amend the family protection and domestic violence intervention act of 1994, in relation to extending the expiration of certain provisions of the criminal procedure law requiring the arrest of certain persons engaged in family violence; and to amend chapter 3 of the laws of 1995, amending the penal law, the correction law, the criminal procedure law and the executive law relating to providing for the sentencing of certain felony offenders, in relation to the effectiveness thereof (Part F); to amend the state finance law, in relation to establishing the Attica state employees victims' fund to compensate the victims and survivors of victims of the 1971 Attica correctional facility riot, and to amend the correction law, in relation to authorizing an annual commemorative ceremony at the Attica correctional facility and providing for the repeal of certain provisions upon expiration thereof (Part G); to amend the executive law, in relation to merging certain powers, functions, and duties of the division of probation and correctional alternatives into the division of criminal justice services and repealing certain provisions of such law relating thereto (Part H); to amend the executive law, in relation to compensation payable to certain state officers (Part I); to amend the state finance law, in relation to the indigent legal services fund and quarterly state payments for assigned counsel paid in accordance with section 35 of the judiciary law (Part J); to amend chapter 989 of the laws of 1958, relating to creating a temporary state commission of investigation, in relation to extending the expiration of such chapter (Part K); 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 L); to amend the civil service law, in relation to the annual filing of collective bargaining information and imposing a fee therefore (Part M); to amend the general business law, in relation to the penalty for unfair and deceptive business practices (Part N); to amend chapter 674 of the laws of 1993, amending the public buildings law relating to value limitations on contracts, in relation to the effective date of such chapter (Part O); to amend chapter 95 of the laws of 2000, amending the state finance law, the general municipal law, the public buildings law and other laws relating to bonds, notes and revenues, in relation to the effectiveness of certain provisions thereof (Part P); to amend the insurance law, in relation to authorizing the use of owner controlled insurance programs for public construction contracts (Part Q); to amend chapter 83 of the laws of 1995 amending the state finance law and other laws relating to bonds, notes and revenues, in relation to the effectiveness of certain provisions thereof (Part R); to amend the vehicle and traffic law, in relation to the denial of registration or renewal for certain violations; in relation to the suspension of registration for failure to answer or pay penalties with respect to certain violations; in relation to establishing a photo-monitoring program to impose fines for failing to obey work zone speed limits; in relation to establishing a photo-monitoring program to impose fines for failing to obey posted speed limits; and in relation to establishing in certain cities a traffic control signal photo-monitoring program to impose fines for failing to obey traffic control signal indications; and to amend the vehicle and traffic law and the administrative code of the city of New York, in relation to the number of intersections at which traffic control devices may be installed (Part S); to amend the county law, in relation to clarifying the applicability of the state wireless communications service surcharge, imposing the surcharge on suppliers of wireless communications service, applying the administrative and enforcement provisions of the tax law to such surcharge, and conforming the base of the city and county wireless surcharges to that of the state wireless surcharge; and to repeal certain provisions of such law relating to authorizing certain counties to impose a wireless surcharge (Part T); to amend the state finance law, in relation to regarding the centralized services provided by the office of general services (Part U); to amend chapter 101 of the laws of 2004, amending the civil service law and the state finance law relating to the health insurance fund, in relation to the effectiveness thereof (Part V); relating to providing for the administration of certain funds and accounts related to the 2005-2006 budget; in relation to authorizing certain payments and transfers; to amend the state finance law, in relation to the school tax relief fund; to amend the private housing finance law, in relation to housing program bonds and notes; 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 bonds; 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 issuance of bonds; to amend chapter 81 of the laws of 2002, relating to the financing of the Elk street parking garage building located in the city of Albany, in relation to the issuance of bonds; to amend the state finance law, in relation to variable rate bonds, payments, transfers and deposits of funds and investment of general funds, bond proceeds, and other funds not immediately required; to amend the public authorities law, in relation to state environmental infrastructure projects and providing for the repeal of certain provisions upon expiration thereof (Part W); to amend the state finance law, in relation to creating a program of aid and incentives for municipalities; and to repeal certain provisions of such law relating thereto (Part X); to amend the civil service law, in relation to the consideration of ability to pay in the determination of arbitration awards; to amend the general municipal law, the state finance law, the education law, the environmental conservation law, the highway law, the labor law, the public authorities law, the county law, the public health law, the facilities development corporation act, chapter 560 of the laws of 1980 relating to authorizing the city of New York to adopt a solid waste management law, the New York state urban development 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, chapter 735 of the laws of 1979 relating to providing for construction of an American stock exchange/office facility in New York county, chapter 825 of the laws of 1987 amending the public authorities law and other laws relating to the construction and improvement of court facilities, the Hudson river park act, in relation to requirements for separate contracts for certain public works; to amend the civil practice law and rules, in relation to payment of certain podiatric expenses; 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 deaths; to amend the general municipal law and the public officers law, in elation to the authorization of inter-municipal agreements; to amend the state finance law, the general municipal law, and the public authorities law, in relation to the state and local government short-term investment pool; to amend the general municipal law, in relation to temporary investments by local governments; to amend chapter 130 of the laws of 1998, amending the general municipal law relating to temporary investments by local governments, in relation to the effective date thereof and to repeal section 101 of the general municipal law, section 135 of the state 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, subdivision (b) of section 6281 of the education law, paragraph f of subdivision 27 of section 1680 of the public authorities law, paragraph b of subdivision 1 of section 1734 of the public authorities law, subdivision 2 of section 2350-o of the public authorities law, paragraph (a) of subdivision 6 of section 2466 of the public authorities law, subdivision 1 of section 2722 of the public authorities law, 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 providing facilities for community colleges and the powers of the state university trustees, section 29 of chapter 337 of the laws of 1972, amending the correction law and other laws relating to facilities for the department of correctional services, subdivisions (a) and (b) of section 4545 of the civil practice law and rules, and subdivision (e) of rule 4111 of the civil practice law and rules, relating thereto (Part Y); to amend the tax law, in relation to creating a new Co-STAR tax rebate program for certain eligible county and city of New York taxpayers (Part Z); to amend the general municipal law, the municipal home rule law and the village law, in relation to mergers and consolidations of municipal governments; and to repeal section 2-218 of the village law relating to registration list of voters (Part AA); and to amend the retirement and social security law, in relation to duties of the comptroller to make changes in actuarial funding assumptions and methods subject to independent review and public comment and to improve disclosure of the funded status and employer funding requirements of the New York state and local retirement systems (Part BB)

PURPOSE:

This bill contains provisions needed to implement the Public Protection and General Government portions of the 2005-06 Executive Budget.

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

Part A – Permit use of “aggregate weight” standard.

Sections 220.06, 220.09, 220.16, 220.18, 220.21, 220.34, 220.39, 220.41 and 220.43 of the Penal Law are amended to adopt appropriate aggregate weight, rather than pure weight, standards for defining quantities of controlled substances for various levels of drug offenses. “Aggregate weight” refers to the total weight of a substance containing illegal drugs (e.g., also containing an inert substance).

Article 220 of the Penal Law contains numerous sections that address controlled substances and specify criminal offenses based on the weight of the drug. Currently, various sections of Article 220, depending on the particular drug and/or level of offense, utilize either an “aggregate” or “pure weight” standard to determine drug weight and degree of offense.

Whenever the pure weight standard is used it creates two burdensome obligations for forensic laboratories: the task to develop a scientifically valid method to quantify the drug; and the time consuming effort to perform a quantitative analysis to extract the pure drug from the substance submitted for testing. These actions are necessary to determine if the pure weight of the drug meets the statutory threshold(s) for various drug offenses.

New York is currently the only state in the nation that maintains both aggregate and pure weight standards in determining the level of drug offense. This bill eliminates the pure weight standard and implements an aggregate weight standard alone.

Adoption of a uniform aggregate weight standard will provide numerous benefits to police agencies and prosecutors without compromising the interests of persons charged with controlled substance offenses. Under the current law, laboratories cannot meet the needs of the judicial system and a number of cases are being dismissed due to backlogs at forensic labs. Adoption of an aggregate weight standard would reduce the number of dismissals and avoid the need to increase laboratory spending to process evidence in a timely manner. Implementing an aggregate weight standard would also bring New York law into conformity with other states and with Federal law.

Part B – Extend authorization for deposits into the Armory Rental Account.

Section 183, subdivision five of the Military law requires that half of armory rental revenues be apportioned among all units of the State's organized militia.

To enable State armories to annually offset utility and other non-personal service operating costs, a statute requiring the deposit of all armory rental revenue receipts into a specific special revenue account was first enacted in 1996.

Subsequently this provision was extended four additional times. Most recently, section 1 of Chapter 62 of the laws of 2003 extended the provision that authorizes the deposit of 100 percent of armory rental revenue into the dedicated Armory Rental Account to offset the General Fund cost of running the armory. The provision expires on July 31, 2005.

This bill extends this provision until July 31, 2010.

Without the extender, revenues collected from rental of the State armories would not be able to be used to offset the costs of running these facilities, and additional General Fund appropriations would be required.

Part C – Extend the Tuition Recruitment and Incentive program for members of the State’s organized militia.

This bill amends section five of Chapter 268 of the Laws of 1996, as amended by section one of Part F of Chapter 63 of the Laws of 2001, authorizing higher education tuition assistance for active members of the New York Army and Air National Guards and the New York naval militia.

Section 1 of Chapter 63 of the laws of 2001 is due to expire on March 31, 2006.

The Recruitment Incentive and Retention Program was initially authorized by section five of Chapter 268 of the Laws of 1996 which was amended and continued by section one of Chapter 63 of the laws of 2001.

Three years after being implemented in 1997, the Recruitment Incentive and Retention Program was credited with reversing a decline in force strength of the New York National Guard. Although force strength is again on the decline, presumably owing to increased and lengthened Federal activations of National Guard units, the program remains an effective and valuable recruitment and retention tool. In addition, the program results in a better educated State militia while also recognizing the sacrifices and contributions made by members of the New York National Guard in the war on terror.

Part D – Extend the period for processing certain parole violation warrants.

Effective immediately, this proposal would amend the Executive Law to require the Division of Parole to provide an alleged parole violator who was taken into custody outside of New York with notice of the time, place, and purpose of a preliminary revocation hearing within ten days from the date that the parole violation warrant was formally executed.

Upon the execution of a warrant for parole violation, the State must provide the alleged violator with a preliminary hearing within 15 days. Under current law, the Division has five days to take an alleged parole violator outside of New York into custody and serve the individual with a warrant containing the alleged charges and the time and place of the preliminary hearing, leaving the alleged violator with 10 days to prepare for a preliminary hearing.

By allowing the Division ten days to provide the notice of a hearing, an alleged violator could have only five days to prepare for a preliminary hearing. However, the number of parolees affected by this circumstance would be minimal. Eighty-eight percent of violators affected by this bill either waive their right, or are not entitled, to a preliminary hearing. If a parole violator does request the hearing, State regulation permits the violator to seek an adjournment in order to either obtain counsel or acquire evidence. Furthermore, the impact of the bill would be negligible as the New York Court of Appeals (People ex rel. Calloway v. Skinner) has stated that preliminary hearings are intended to be informal and summary in nature. Accordingly, five days is sufficient preparation time for the remaining alleged violators who request preliminary hearings. It should also be noted that the recommended change in statute has no impact on when the final hearing is being held. Final hearings, which determine whether parole will be revoked or restored, must take place within 90 days after the conclusion of the preliminary hearing.

The current five-day period imposed upon the Division has proven to be insufficient in many situations, and often has a negative impact on parole operations. A violator may be at a location that is difficult to reach, or may demand greater attention in the form of heightened security measures. Because of these problems, transporting fugitive felons can cause complicated and inefficient travel arrangements. If the Division fails to take custody of the alleged parole violator and process the charges against the violator within the prescribed five-day period, the violation warrant must be lifted and the charges dismissed.

By extending this length of time to ten days, the Division of Parole would be better able to transport fugitive felons, while still affording them the proper degree of procedural due process called for under the Executive Law. The Division of Parole's Warrant and Transfer staff makes approximately 1,000 trips each year to pick up and return alleged parole violators to New York State. The Division expends a significant amount of resources to ensure that these alleged parole violators are notified within the time constraints currently in statute.

Part E – Extend the authorization to fund public safety efforts with motor vehicle law enforcement fees.

This bill extends provisions originally enacted in 2003 that direct increased revenue from motor vehicle law enforcement fees to the State Police Motor Vehicle Law Enforcement Account (MVLEA) to offset costs associated with highway safety and public security.

The provisions increasing revenue in the MVLEA were extended for one year in the SFY 2004-05 enacted Budget. This bill extends these provisions, including a $1 to $5 fee increase on automotive insurance policyholders, for another year.

The Motor Vehicle Theft and Insurance Fraud Prevention Fund (MVTIFPF) in the Division of Criminal Justice Services receives the first $4.7 million in fee revenue from commercial and other motor vehicles. Current law provides that $60.4 million of motor vehicle law enforcement fees be deposited in the MVLEA. Thus, all additional revenue from these vehicles is transferred to the MVLEA until the $60.4 million cap is reached. All revenue collected in excess of the cap is then redirected back to the MVTIFPF. These provisions are set to expire on March 31, 2005 and July 1, 2005 respectively. This bill extends these provisions through March 31, 2006 and July 1, 2006 respectively.

This bill also extends provisions in State Finance Law which establish eligible uses of funds in the MVLEA to include highway safety and public security. It also provides that $9.1 million will continue to support anti-auto theft costs of the State Police. Currently, these provisions in State Finance Law are set to expire on March 31, 2005. This bill extends these provisions through March 31, 2006.

Part F – Extend various criminal justice programs and fees.

Effective immediately, the provisions of law cited in the following sections are extended an additional five years.

Section one of the bill amends section 2 of chapter 887 of the Laws of 1983 to extend provisions related to the psychological testing of correction officer candidates.

Section two of the bill amends section 3 of chapter 428 of the Laws of 1999 to extend provisions relating to expanding the geographic area of employment of certain police officers.

Section three of the bill amends section 3 of Chapter 886 of the Laws of 1972 to extend provisions related to prisoner furloughs and the crime of absconding from a facility.

Section four of the bill amends section 20 of Chapter 261 of the Laws of 1987 to extend the Earned Eligibility program.

Section five of the bill amends subdivision q of section 427 of Chapter 55 of the Laws of 1992 to extend a provision of the Comprehensive Alcohol and Substance Abuse (CASAT) program which allows inmates to enter a residential treatment facility upon successful completion of the CASAT program.

Section six of the bill amends section 10 of Chapter 339 of the Laws of 1972 to extend the Temporary Release program.

Section seven of the bill amends subdivision c of section 46 of Chapter 60 of the Laws of 1994 to extend provisions which designate the capacity of the Comprehensive Alcohol and Substance Abuse (CASAT) program and limit eligibility for the Temporary Release program.

Section eight of the bill amends section 5 of Chapter 554 of the Laws of 1986 to extend provisions related to community treatment facilities and the crime of absconding from a community treatment facility.

Section nine of the bill amends subdivision h of section 74 of Chapter 3 of the Laws of 1995 to extend provisions related to the incarceration fee.

Section ten of the bill amends subdivision z of section 427 of Chapter 55 of the Laws of 1992 to extend the Parole supervision fee.

Section eleven of the bill amends subdivision (aa) of section 427 of Chapter 55 of the Laws of 1992 to extend provisions related to the DWI and custody investigation fees.

Section twelve of the bill amends section 12 of Chapter 907 of the Laws of 1984 to extend the provisions of the Classification/Alternatives to Incarceration law.

Section thirteen of the bill amends subdivision 8 of section 1809 of the Vehicle and Traffic Law relating to parking violations and surcharges.

Section fourteen of the bill amends subdivision 8 of section 1809 of as amended by chapter 95 of the Laws of 2001 to mandate a surcharge for convicted offenders and a crime victim assistance fee.

Section fifteen of the bill amends subdivision (r) of section 427 of Chapter 55 of the Laws of 1992 to extend provisions related to release of inmates on medical parole.

Section sixteen of the bill amends section 6 of Chapter 713 of the Laws of 1988 to extend the ignition interlock device program.

Section seventeen of the bill amends subdivision 6 of Section 76 of chapter 435 of the Laws of 1997 to extend merit time.

Section eighteen of this bill amends part D of chapter 412 of the Laws of 1999 to extend provisions related to prisoner litigation reform

Section nineteen of this bill mandates an arrest in domestic violence situations.

Section twenty of this bill extends determinate sentences for violent felons as enacted in the Truth in Sentencing Act of 1995 and Jenna’s Law as enacted in the Laws of 1998.

Presently, the provisions of law cited in the various sections of the bill are due to expire as follows: sections one through nineteen on September 1, 2005; and section twenty on September 30, 2005. Legislation similar to sections one through nineteen of the bill was enacted in 2003; while section twenty was enacted in the Laws of 1995 and 1998.

These criminal justice programs and fees provide incentives for inmate rehabilitation and mitigate the need to expand general confinement space. Additionally, determinate sentencing has lengthened sentences for the most serious crimes and prevented violent felons from returning to the community.

Part G – Provide compensation for the State employee-victims who were killed or injured during the 1971 inmate uprising at the Attica Correctional Facility, or their survivors.

This bill provides authorization and a mechanism to compensate certain survivors and/or legal representatives of State employees who were killed or injured at the 1971 inmate uprising at the Attica correctional facility. The bill:

• Establishes the Attica State Employee Victims’ Account which will be used to make payments to the victims;
• Provides for six annual payments of $2 million, totaling $12 million by 2010-11;
• Provides for appointment of an “administrator” to develop a plan and schedule of payments to claimants; and,
• Grants State employee victims and their survivors access to the outside grounds of the Attica Correctional Facility to conduct an annual memorial service.

During the course of a four day uprising at the Attica Correctional Facility in September 1971 and the subsequent retaking of the facility, approximately 50 State employees were attacked, injured, and/or held hostage. Eleven employees of the State were killed, and a number of other State employees suffered varying degrees of injuries.

In 2000, the State settled a class action lawsuit brought on behalf of the inmates who were killed or injured in this incident. Pursuant to that settlement, the inmates received a total of $8 million while their legal representatives received $4 million, totaling $12 million. However, the vast majority of the injured state employees and surviving family members of killed State employees were unable to recover adequate compensation for the great injuries suffered in the service of the State.

The establishment of the Attica State Employee Victims’ Account is intended to provide an equitable level of compensation in light of the $12 million settlement reached in 2000 on behalf of the inmates.

Part H – Merge the Division of Probation and Correctional Alternatives into the Division of Criminal Justice Services.

This bill repeals sections 240 and 241 of the Executive Law and adds a new subdivision 7 to section 836 of the Executive Law to merge the Division of Probation and Correctional Alternatives into the Division of Criminal Justice Services. This is a new bill.

The merger of the Division of Probation and Correctional Alternatives into the Division of Criminal Justice Services will centralize administration of the vast majority of criminal justice local assistance aid within the Division of Criminal Justice Services. The merger will strengthen coordination of local programs and create a single point of contact for recipients of local assistance funds. In addition, the merger will allow the Division of Criminal Justice Services to allocate scarce resources to the programs that have proven to be most effective.

Part I – Raise the compensation for the position of Superintendent of State Police, to be commensurate with the current duties and responsibilities of this position.

The Executive Law is amended to move the position of Superintendent of State Police from paragraph B to paragraph A of subdivision 1 of Section 169, to recognize the additional responsibilities that have been placed on this position. The Superintendent has assumed new and expanded duties related to counter-terrorism, including providing security for public and privately owned infrastructure sites, dignitary protection, inspection of international commercial traffic and border security. Advances in technology and forensics have also added new roles, e.g., the use of DNA testing to solve crimes.

Part J – Permit quarterly reimbursement to the Office of Court Administration from the Indigent Legal Services Fund.

Chapter 62 of the Laws of 2003 increased the hourly rate paid by the State to law guardians and stipulated that reimbursement to the State from the Indigent Legal Services Fund for the increased expenses would not be made until April of the following fiscal year. While Chapter 56 of the Laws of 2004 moved the payment date from April to March 31, the issue of timely reimbursement of the State remains.

Effective April 1, 2005, this bill accelerates the State’s reimbursement for law guardian expenses by requiring quarterly payments from the Indigent Legal Services Fund, capped at $6.25 million per quarter.

Although similar provisions were included in the 2004-05 Executive Budget (S.6056/A.9556 Part BB) they were not enacted by the Legislature.

This bill ensures that the State is reimbursed for its increased expenses related to the Law Guardian Program in a more timely manner.

Part K – Extend the Temporary State Commission of Investigation.

This bill amends Chapter 989 of the Laws of 1958, as amended by section 10 of Chapter 95 of the Laws of 2001, which established the State Temporary Commission for Investigation and periodically extended its life.

The Commission was last extended in July 2001 and is currently set to sunset on September 1, 2005.

The State Temporary Commission of Investigation performs investigations in the areas of organized crime and racketeering, the conduct of all public officers (including law enforcement) and other investigations at the direction of the Governor. The Commission’s investigatory work may be undertaken either alone or in conjunction with other state, local or Federal agencies.

Part L – Merge the Public Employment Relations Board and the State Employment Relations Board to create the State Labor Relations Board.

This bill amends the Civil Service Law, the Labor Law and other statutes to merge PERB and SERB into the consolidated State Labor Relations Board. Specifically, this bill:

• Abolishes SERB by repealing Section 702 of the Labor Law, assigning SERB’s existing statutory responsibilities to the new SLRB and amending all existing laws to rename the Public Employment Relations Board;
• Provides that PERB Board members continue to serve as members of the new State Labor Relations Board until their original terms of office expire. It also provides that two new part-time members are to be appointed by the Governor upon the recommendation of the Assembly Speaker and the Senate Majority Leader;
• Provides for several transitional measures required to implement the merger, including the transfer of employees and records to the new agency, and the continuity of the authority, rules, and regulations of the Public Employment Relations Board and the State Employment Relations Board.
• Amends the per diem compensation rate from $250 per day to .0038 of the annual salary of the chairperson, or $459 per day. This would allow the per diem rate for part-time board members to increase as Executive Law §169 is amended.

PERB is established in Article 14 of the Civil Service Law and is charged with assisting State and local governments and their unions in resolving labor impasses by providing mediation services. The Board also certifies unions and reviews improper labor practices. SERB, created by Article 20 of the Labor Law, provides mediation and related services to private businesses and their unions and is also involved in resolving improper labor practices.

A modified version of this bill was included in the 2003-04 Executive Budget Public Protection Article VII Bill (S.1406-A).

The merger of the Public Employment Relations Board and the State Employment Relations Board streamlines New York State government by creating a single agency with an appropriately broad policy perspective that is responsible for assisting the public and private sectors in resolving labor impasses. In addition, this consolidation creates efficiencies through shared staffing and office space.

Part M – Establish information requirements and filing fees for the State Labor Relations Board.

This bill amends Civil Service Law and provides that each certified or recognized employee organization and each public employer provide necessary contact and collective bargaining information to SLRB on an annual basis and imposes a graduated administrative fee schedule. Payment is to accompany the annual submission and the amount is to be determined by the membership size of the employee organization(s).

Presently, SLRB is authorized to request data to assist it in carrying out its statutory duties, but voluntary compliance has been less that 50 percent and does not permit the agency to maintain a complete and accurate database. This undermines SLRB’s ability to act as a clearinghouse for data related to terms and conditions of employment, to make information available to labor and management, and to report to the Governor and legislature on collective bargaining issues throughout the State.

This bill is expected to increase compliance and make SLRB’s database more comprehensive, thereby assisting the agency in providing timely and accurate information to all interested parties.

This is a new bill.

Part N – Increase the maximum civil penalty for unfair business practices.

This bill increases the maximum civil penalty for engaging in unfair and deceptive practices to $5,000 per violation.

Section 350-d of the General Business Law is amended to increase the maximum civil penalty from $500 to $5,000. This civil penalty has not been changed since this section was first enacted in 1963.

Increasing the maximum civil penalty will reinforce and strengthen the State’s deterrence of unfair and deceptive practices against consumers. New York’s penalty is the third lowest in the nation, with the remaining states ranging from $1,000 to $50,000.

Part O – Make permanent the authorization for awarding emergency construction contracts.

Currently under section 9 of the Public Buildings Law, the Commissioner of the Office of General Services (OGS) is authorized to enter into emergency contracts of up to $200,000 without complying with formal bidding requirements. Additionally, section 9 provides for regional lists of bidders to use during emergency conditions, and provides that the Comptroller shall annually report to the Legislature regarding emergency contracts.

Chapter 674 of the Laws of 1993 amended section 9 of the Public Buildings Law to increase from $40,000 to $200,000 the emergency contract threshold without formal competitive bidding requirements, and further provided for regional bidders and reporting. However, these provisions were established temporarily and have been extended every few years since 1993. The emergency contract provisions will currently cease to exist on June 30, 2005.

This bill makes these provisions permanent. OGS’s ability to dispense with formal bidding requirements under certain prescribed emergency situations does not remove all procedural safeguards. However, the $200,000 emergency contract threshold has enabled OGS to respond quickly to various damage situations, equipment failures and other health and safety issues at State facilities.

Part P – Make permanent the authorization for up to 15-year real estate leases for State agencies.

Chapter 83 of the Laws of 1995 added a new subdivision 12 to section 3 of the Public Buildings Law authorizing the Commissioner of General Services (OGS) to enter into 10 year leases for buildings, rooms or premises. Chapter 95 of the laws of 2000 further amended the Public Buildings Law to authorize the OGS Commissioner to enter into such leases with 15 year terms when it benefits the State. The OGS Commissioner’s authority to enter into 15 year leases expires on June 30, 2005. This bill makes this provision permanent.

This lease provision, which has been employed for new and special use facilities, has resulted in lower rental rates over the terms of those leases. Accordingly, the State is able to secure more favorable rental rates. This added leverage is especially important in the New York City Metropolitan Area, where the State must compete with commercial tenants for available space.

Part Q – Authorize the use of owner-controlled insurance.

This bill amends section 2504 of the Insurance Law to permit State agencies, certain public authorities and localities to use owner controlled (“wrap-up”) insurance on public construction projects, generating savings on the insurance component of such capital projects.

Currently, Insurance Law prohibits State agencies, local governments and most public authorities from directly purchasing most of the insurance required for capital construction projects. These public entities instead must require that insurance be purchased by the contractors to whom project contracts are awarded.

Implementing an Owner Controlled Insurance Program (OCIP) will allow the State and public authorities to comprehensively insure capital projects and provide cost efficiencies when compared to the current practice of private contractors insuring each individual capital contract. Additional cost savings are achieved because the State and public authorities are able to capitalize on their favorable loss experience and eliminate contractor mark-ups, significantly reducing premiums paid by public entities. OCIP can also increase construction contracting opportunities for minority and women-owned businesses that may have difficulty in obtaining insurance.

Part R – Make permanent the authorization for centralized purchasing of commodities and services.

Section 33 of Chapter 84 of the Laws of 1995, the Procurement Stewardship Act, added section 163 to State Finance Law which established the technical and procedural requirements for procurement of commodities and services and mandated open and competitive processes. Subsequently, Chapter 95 of the Laws of 2000 extended the sunset provision of section 163 of the State Finance Law from June 30, 2000 to June 30, 2005.

This bill makes the provisions of section 163 of the State Finance Law permanent.

Section 163 offers a fiscally responsible and cohesive procurement strategy that furthers best practices in purchasing and ensures a fair and open procurement process including the important standards of awarding commodity contracts based on the lowest price. These provisions have produced significant savings for State agencies and other entities, including local governments and school districts.

Part S – Authorize the use of traffic law enforcement cameras at work zones, dangerous stretches of highway and traffic-light intersections.

This bill adds new sections 1181-a and 1181-b to the Vehicle and Traffic Law which authorize the Division of Criminal Justice Services, the Division of the State Police, the Department of Transportation, the New York State Bridge Authority and the New York State Thruway Authority to implement a program utilizing remote control photo-monitoring equipment for the purpose of imposing a monetary penalty on the registered owners of vehicles that have been documented exceeding the posted speed in work zones and in designated sections of interstate highways. A $100 monetary penalty will be imposed upon the registered owner of the violating vehicle. Registered owners found liable for violations of the provisions of this bill will not be deemed convicted as an operator, be assessed points against their driver’s license, or be subject to increased automobile insurance premiums. Adjudication of contested violations shall be conducted by a Liability Review Board established by the Director of the Division of Criminal Justice Services.

With respect to photo-monitoring enforcement in designated sections of interstate highway, this is a new proposal. However, in 2004 a similar proposal relating to work zones failed to pass in either the Senate or Assembly.

This bill also adds a new section 1111-b to the Vehicle and Traffic Law which authorizes qualifying cities, town and villages to implement a program utilizing remote control photo-monitoring equipment for the purpose of fining the registered owners of vehicles that ignore red lights and travel unlawfully into an intersection. Each individual city will establish its own procedures for administering the program, establishing fines and adjudicating violations. Similar to New York City’s current red light program, registered owners found liable for violations of the provisions of this bill will not be deemed convicted as an operator, be assessed points against their drivers license, or be subject to increased automobile insurance premiums. Proceeds from payment of fines will be retained by the locality, much like parking violations revenue.

This bill amends section 1111-a of the Vehicle and Traffic Law, section 19-210 of the Administrative Code of the City of New York, and Local Law Number 20 of the City of New York (1998), to increase from 50 to 100 the number of intersections where traffic-control signal photo-monitoring devices may be installed and operated.

Part T – Clarify the provisions for administration of the State and local wireless communications service surcharges.

This bill amends County Law to clarify technical definitions and administrative and enforcement provisions related to the State and local wireless surcharges. In doing so, County Law will be brought into conformity with Tax Law regarding the application of the surcharges. These changes, recommended by the Department of Taxation and Finance, will clarify the wireless communication devices that are subject to the State and local surcharges, including prepaid wireless phone services.

This bill also consolidates thirty-five current subdivisions of County Law into a single subdivision authorizing a list of specific counties to levy local wireless surcharges. Currently, each county’s authorization to levy a surcharge is provided in a separate subdivision of law.

In addition, this bill amends County Law to conform the permissible uses of revenues from the city and county wireless surcharges. Legislation passed in 2002 permitted 19 counties and New York City to use local surcharge revenues for “costs associated with the design, construction, operation, maintenance, and administration of public safety communications networks.” All other counties authorized since are limited to using surcharge revenues only for payment of “eligible wireless 911 service costs.” This bill permits the second group of counties the same broader, public safety communications related uses as the first group once they have attained compliance with enhanced wireless 911 standards pertaining to geographically locating wireless 911 callers.

Finally, this bill amends County Law to direct the deposit of the full amount of the monthly State wireless communications service surcharge into the Statewide Public Safety Communications Account. Currently, $.50 of the full $1.20 monthly surcharge is deposited into the General Fund. In addition, this bill amends the distribution amounts for certain permissible uses of surcharge revenues. These changes are necessary to support planned public safety expenditures, including those related to enhancing local wireless 911 services, the Statewide Wireless Network and Homeland Security.

Part U – Add electricity, insurance and risk management to the OGS services available to State agencies, public authorities and municipalities.

The bill amends the State Finance Law to authorize OGS to purchase electricity for State agencies. Under existing law, OGS is limited to purchasing electricity only from the Power Authority of the State of New York. OGS will generate customer savings by becoming an Energy Service Company (ESCO) able to directly purchase electricity as a commodity rather than relying on the delivered price from a servicing utility.

The bill also authorizes OGS to purchase renewable, or so-called “green,” power for State agencies to implement Executive Order 111, which requires that 10 percent of electric energy purchases by State agencies be “green” by the end of 2005.

In addition, the bill provides political subdivisions, public benefit corporations and public authorities the option to purchase electricity from OGS. Finally, the bill adds insurance and risk management to the centralized services that OGS provides to State agencies and expands availability to localities, and extends optional participation in these two new services to public benefit corporations and public authorities.

Part V – Clarify administration of the Employee Health Insurance Fund.

This bill makes permanent the 2004 law that clarified the authority of the Department of Civil Service to administer the State Employee Health Insurance Fund. The Fund is used for payments in support of employee health insurance benefits provided to active and retired employees of the State and other public employers who participate in the Empire Plan. Extension of the 2004 law is necessary to codify the Department’s longstanding practice of accounting for health insurance program dividends and making payments from the Fund without an appropriation.

Part W – Authorize miscellaneous fiscal provisions.

Section 1 authorizes specific State Funds and accounts to receive temporary loans for the 2005-06 fiscal year.

Section 2 authorizes specific Federal Funds to receive temporary loans for the 2005-06 fiscal year.

Sections 3 through 8 authorize transfers from and to designated funds and accounts.

Section 8-a authorizes the State Comptroller to deposit funds to the banking services account.

Section 8-b authorizes the State Comptroller to transfer moneys from the State Lottery Fund (160) VLT education account (06) to the State Lottery Fund education account (03).

Section 8-c authorizes payment and directs the state comptroller to deposit to the credit of the State University Income Fund (345.11) the State’s share of repayment of the Short-Term Investment Pool (STIP) loan related to State of New York (SUNY) hospitals.

Section 9 amends State Finance Law to permanently authorize the deposit of funds into the School Tax Relief Fund.

Section 10 authorizes reimbursement to the General Fund from the Correctional Facilities Capital Improvement Fund for costs related to capital projects.

Section 11 authorizes, in the event insufficient funds are available in the State University Income Fund, the payment of hospital operating costs or a transfer of funds between the State University Collection Fund and the State University Income Fund for the purpose of paying debt service on SUNY hospitals.

Section 12 amends State Finance Law to permanently authorize interfund loans within a month.

Section 13 amends State Finance Law to preclude the State Comptroller from crediting interest earnings to agency funds.

Section 14 authorizes appropriations for various Capital Projects Funds that are in accordance with section 93 of State Finance Law and requires certification of certain capital spending by the State Comptroller and designated State authorities and agencies.

Sections 15 through 21 authorize the State Comptroller to deposit reimbursements for certain capital spending from new capital appropriations contained in various Chapters of the Laws of 1999 through 2005 into the Capital Projects Fund.

Section 22 authorizes the State Comptroller to establish a process by which moneys may be used to make rebates required by Federal Tax Law to the Federal government.

Section 23 extends authorizations in section 16 of part P2 of Chapter 62 of the Laws of 2004 regarding disbursements for hazardous waste site remediation projects.

Sections 24 and 25 amend paragraphs (a) of subdivisions two and five, respectively, of section 47-e of the Private Housing Finance Law, as amended by Chapter 62 of the Laws of 2003, to increase the maximum amount of State-supported bonds that may be issued by the Housing Finance Agency to finance certain capital projects related to housing.

Section 26 increases the maximum amount of State-supported bonds that may be issued by the Urban Development Corporation (UDC) to finance capital projects related to correctional facilities.

Section 27 authorizes the maximum amount of State-supported bonds that may be issued to finance capital projects for the Division of State Police.

Section 28 authorizes the maximum amount of State-supported bonds that may be issued to finance capital projects for the Division of Military and Naval Affairs.

Section 29 amends 1285-p of the Public Authorities Law, as added by Chapter 59 of the Laws of 2004, to increase the maximum amount of State-supported bonds that may be issued by the Environmental Facilities Corporation to finance various environmental infrastructure capital projects.

Section 30 amends Chapter 59 of the Laws of 2004 to increase the maximum amount of State-supported bonds that may be issued by UDC to finance capital projects related to State facilities.

Section 31 increases the amount of State-supported bonds that may be issued to finance the Elk Street Parking Garage.

Sections 32 and 33 amend section 1680 of the Public Authorities Law to increase the maximum amount of State-supported bonds that may be issued by the Dormitory Authority of the State of New York to support various SUNY and City University of New York (CUNY) capital projects financed under the new SUNY and CUNY Five-Year Capital Investment Programs.

Section 34 amends the maximum amount of bonds authorized to be issued for capital matching grants for higher education facilities.

Section 35 makes permanent an amendment enacted by Chapter 7 of the Laws of 2003, relating to Section 69-C of the State Finance Law to clarify how present value savings shall be calculated under various State-supported bonding caps as they relate to financing structures authorized by Article 5-D of the State Finance Law.

Section 36 makes a technical amendment to the Debt Reform Act of 2000, to clarify that debt service expenses included under the cap calculations shall include gross principal, interest, and related swap payments.

Section 37 creates a new Article 5-E in the State Finance Law, authorizing the State Comptroller, as sole trustee of the common retirement fund, to provide credit and/or liquidity support for State-supported debt.

Sections 38 through 41 are technical changes to clarify the original intent of the statutory calculations used to measure the State’s variable rate exposure for financial planning purposes. The original “Article VII” legislation was designed to be a financial management tool to allow the State to use a variety of financial products which result in the State paying a “net” variable rate (of up to 15 percent of outstanding State-supported debt) in order to reduce costs, “match” variable rate exposure to variable rate earnings on the State’s short term investments, and to diversify the State-supported debt portfolio.

The amendments clarify that any financial products (including variable or fixed rate bonds, swaps, convertible bonds, step-coupon bonds, or newly created financial products) would not count against the State’s variable rate exposure during any fiscal year where the State pays a net fixed rate of costs. For example, convertible bonds that are in a fixed rate mode for ten years, and then convert to a variable rate mode in year eleven, would not count as net variable rate exposure until year eleven. Similarly, any combination of swaps/bonds that result in a fixed rate payment by the State for a fiscal year, and then convert to a variable rate payment, would not count as variable rate exposure except during the fiscal years where they resulted in net variable rate payments by the State. In addition, stepped-coupon or other types of financial products that result in known and predictable fixed costs, even if they may change in the future, would not count as net variable rate exposure.

The amendments also clarify that any bonds and swap contracts remain valid regardless of any future events that could change the calculation of net variable rate exposure, including recalculating said exposure on a swap’s future conversion date. Also, it requires a certificate from the Budget Director on compliance with the caps, which shall be conclusive that such bonds and contracts are in compliance with the limitations imposed by Article 5-D.

Section 42 amends section 97 of the State Finance Law by adding a new section 97-eeee creating a cultural resource survey account.

Section 43 is the severability clause.

Section 44 makes the act effective immediately, with full force and effect as of April 1, 2005.

State Finance Law requires statutory authorization for funds/accounts to receive temporary loans from the State Treasury. Similar provisions were enacted to implement the 2004-05 Budget and need to be extended to implement the 2005-06 Budget.

This bill is also necessary to execute a balanced financial plan in accordance with the 2005-06 Executive Budget. Such legislation is enacted annually to authorize loans budgeted in the financial plan but that do not have permanent statutory authorization, as well as to provide for other transactions necessary to maintain a balanced financial plan.

The provisions of this bill relating to the performance of necessary administrative and programmatic functions by DOB and OGS are also enacted annually.

Part X – Create a new performance-based Aid and Incentives for Municipalities (AIM) Program.

This bill repeals Sections 54 and 54-c of the State Finance Law, replacing the State’s existing revenue sharing and other unrestricted aid programs with a new Aid and Incentives for Municipalities (AIM) program. Key sections of this bill would:

• consolidate existing unrestricted State aid programs including revenue sharing and supplemental municipal assistance into a single aid to municipalities grant which preserves funding for each municipality at 2004-05 levels;
• establish eligibility for additional aid increases to cities, ranging from 5 to 25 percent by 2006-07, based upon population levels and full valuation per capita. Certain towns and villages would receive a five percent increase by 2006-07 based upon full value per capita;
• require cities eligible for increases exceeding five percent to enter into a fiscal performance agreement with the Secretary of State in order to access the higher funding levels; and
• create a new Shared Municipal Services Incentive Award program to provide additional grant funding for collaborative shared services initiatives undertaken by two or more municipalities.

The current revenue sharing formula, contained in section 54 of the State Finance Law, is outdated and unaffordable since it would require eight percent of the State’s total tax revenues be distributed among local governments based on a per capita formula. As a result, this section has been “notwithstood” annually for more than 25 years. In addition, other funding increases to municipalities through programs such as Supplemental Municipal Aid have been provided on a selective and sporadic basis, resulting in wide variations in State aid levels with little emphasis on local fiscal accountability.

The new aid to municipalities program preserves existing funding for municipalities while rewarding improved local fiscal performance by providing aid increases, pursuant to a fiscal performance agreement. These increases are intended to encourage local efficiencies and sound financial management practices.

Local government efficiencies and improvements will also be facilitated through the provision of Shared Municipal Services Incentive (SMSI) Awards. These awards will be available to cities, towns, villages, counties and school districts to offset costs associated with initiatives designed to streamline operations and provide local government services as efficiently as possible.  Such activities could include county “host agency” services ranging from payroll to purchasing to snowplowing, as well as local government consolidations or mergers.

Part Y – Authorize comprehensive mandate relief for localities.

Section 1 requires arbitration panels to consider, above all other factors, the financial ability of a local government to pay an award without increased taxation, or in the case of the State, without increased taxation or contributing to budget deficits. This will make the award process more rational and cognizant of the burdens arbitration decisions can place on local property taxpayers.

Sections 2 through 71 and sections 89 through 91 repeal multiple bidding requirements for the State, municipalities, school districts and public authorities (Wicks Law). This will give local governments the option of bidding separate contracts or awarding a single contract to a general contractor. Virtually all other states, Federal agencies and private developers have this flexibility to assure that projects are constructed in the most cost-effective and timely manner possible.

Sections 72 through 88 bring greater parity to the process under which legal claims against a public entity are resolved by:

Allowing judgment awards against local governments and the State to be offset by both past and future compensation from all collateral sources, i.e., insurance, social security and workers’ compensation, as they are in the private sector.

Establishing a reasonable market-based method of calculating interest in court judgments similar to the method used in judgments involving the Federal government.

Conferring exclusive jurisdiction to the Court of Claims for matters involving certain New York City public authorities.

These proposals allow municipalities to benefit from the flexibility and savings now realized by other governments.

Sections 92-95 authorize inter-municipal agreements for the joint provision of services and the sharing of real property taxes, and remove the residency requirements of the Public Officers Law in facilitating these types of agreements.

Sections 96 and 97 expand investment options that allow local governments to generate increased earnings on short term deposits beyond those currently permissible under law, while providing the necessary safeguards to ensure prudent investment practices.

The proposals advanced by this legislation draw heavily on legislative proposals previously introduced in the Legislature, Governor’s Program bills, and proposals advocated by local government officials and the public. This bill makes changes to the Civil Service, General Municipal, Public Officers, Labor, Education, State Finance, Public Authorities, Civil Practices Law and Rules, Public Housing, County, Environmental Conservation, Executive and Highway laws and other unconsolidated laws.

Part Z – Create a new Co-STAR tax rebate for eligible STAR recipients throughout the State.

The Co-STAR program is designed to provide a rebate or credit to taxpayers residing in annually-qualified counties, including the City of New York. Key sections of this bill would:

• require counties and New York City to keep general fund spending growth below the Medicaid Cap growth rates of 3.5 and 3.25 in SFYs 2006 and 2007, respectively, and 3 percent thereafter, in order to be eligible;
• provide a rebate check and/or personal income tax credit, as applicable, to all qualified STAR recipients in eligible counties or the City of New York. Upon application, taxpayers would also have to submit proof of that year's paid property tax bill;
• instruct the State Comptroller, upon review of the adopted, local budgets, to verify eligibility on an annual basis. The Tax Department would be responsible for administering checks to all eligible taxpayers; and,
• phase-in the rebate checks and PIT credits over a six-year period. For 2006-07 and 2007-08, only eligible seniors and farmers would receive checks of $100 and $200, respectively. All other STAR recipients in eligible counties would receive a $50 check in 2008-09, rising to $200 in 2011-12. PIT credits for eligible NYC residents will amount to an additional 25 percent of the current STAR credit, when fully phased in.

Part AA – Facilitate the merger and consolidation of local governments.

This bill adds a new Article 17-A to the General Municipal Law to create a locally initiated procedure for the merging of local governments. This proposal would allow adjoining towns, villages, cities or counties (outside New York City), of any combination thereof, to merge into a single local government. Each constituent local government would be required to adopt a plan for merger and submit that plan to the electors in each constituent local government.

Amendments are made to the Village Law to facilitate village consolidation dissolution or merger.

Part BB – Provide for independent review and public comment on pension funding changes, and reconsideration of the 2005-06 contribution rates.

This bill amends the Retirement and Social Security Law to require the State Comptroller to provide for an independent professional review and a public comment period prior to making changes in actuarial funding assumptions and actuarial funding methods affecting the New York State and Local Retirement System. The bill also requires the Comptroller to reconsider implementation of recent actuarial funding changes for 2005-06 contribution rates until the requirements of this Act have been fulfilled.

The State Comptroller made significant changes to actuarial funding assumptions and actuarial funding methods in developing employer pension contribution rates for the 2005-06 fiscal year. These changes were made prior to completion the usual five year period, with minimal public disclosure and no opportunity for independent review or public comment. Moreover, the changes appear questionable since no actuarial analysis (e.g., a five year experience study) has been presented to support them. Basic principles of checks and balances and open government require a more comprehensive independent review and opportunity for public comment to ensure that actuarial funding changes are necessary and are justified on a sound empirical basis.

In addition, the bill improves financial reporting of the Retirement System by requiring: a reporting of the System’s funded status on a basis that is comparable with other states; a five-year projection of future employer contribution rates; and a complete reconciliation between the actuarial value and the market value of assets. Current disclosure practices of the Retirement System do not provide a clear and practical assessment of its funded status. Furthermore, the Retirement System does not publish adequate information to support long-term planning of employer pension obligations.

BUDGET IMPLICATIONS:

Part A – Permit use of “aggregate weight” standard.

Enactment of this bill is necessary to implement the 2005-2006 Executive Budget because implementation of aggregate weight standards will reduce Division of State Police laboratory spending by approximately $1 million.

Part B – Extend authorization for deposits into the Armory Rental Account.

Enactment of this bill is necessary to implement the 2005-2006 Executive Budget, which includes the payment of $1.1 million in armory operating costs from the revenues deposited into the Armory Rental Account.

Part C – Extend the Tuition Recruitment and Incentive program for members of the State’s organized militia.

Enactment of this bill is necessary to implement the 2005-2006 Executive Budget, which includes a $3.3 million appropriation for this purpose.

Part D – Extend the period for processing certain parole violation warrants.

Enactment of this bill is necessary to implement the 2005-2006 Executive Budget, which assumes $200,000 in General Fund savings.

Part E – Extend the authorization to fund public safety efforts with motor vehicle law enforcement fees.

Enactment of this bill is necessary to implement the SFY 2005-2006 Executive Budget, which includes $51.3 million of revenue from the 2003 increase of $4 in the motor vehicle law enforcement fee to offset the costs of the State Police’s public safety efforts.

Part F – Extend various criminal justice programs and fees.

Enactment of this bill is necessary to implement the 2005-2006 Executive Budget by extending authorization for numerous criminal justice initiatives that reduce overall criminal justice system costs.

Part G – Provide compensation for the State employee-victims who were killed or injured during the 1971 inmate uprising at the Attica Correctional Facility, or their survivors.

This bill creates the Attica State Employee Victims’ Account for the purpose of making payments to state employee-victims of the Attica uprising or their surviving family. In 2005-06, this account will make payments totaling $2 million. It is anticipated that annual appropriations of $2 million will be enacted in each of the next 6 years, for a total of $12 million in payments to claimants by the 2010-11 State fiscal year.

Part H – Merge the Division of Probation and Correctional Alternatives into the Division of Criminal Justice Services.

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

Part I – Raise the compensation for the position of Superintendent of State Police, to be commensurate with the current duties and responsibilities of this position.

The cost of this salary increase can be managed within the resources budgeted for State Police.

Part J – Permit quarterly reimbursement to the Office of Court Administration from the Indigent Legal Services Fund.

Enactment of this bill is necessary to implement the 2005-2006 Executive Budget, which assumes timely General Fund reimbursement of $25 million in additional expenses generated by Chapter 62 of the Laws of 2004.

Part K – Extend the Temporary State Commission of Investigation.

Enactment of this bill is necessary to implement the 2005-2006 Executive Budget, which includes appropriations for the Commission.

Part L – Merge the Public Employment Relations Board and the State Employment Relations Board to create the State Labor Relations Board.

Enactment of this bill is necessary to implement the 2005-2006 Executive Budget, which includes savings of $840,000 generated by the merger.

Part M – Establish information requirements and filing fees for the State Labor Relations Board.

Enactment of this bill is necessary to implement the 2005-2006 Executive Budget, which includes $1,129,000 in revenue associated with these new fees.

Part N – Increase the maximum civil penalty for unfair business practices.

Enactment of this bill is necessary to implement the 2005-2006 Executive Budget, which includes $600,000 in new revenues associated with this penalty increase.

Part O – Make permanent the authorization for awarding emergency construction contracts.

Enactment of this bill is necessary to implement the 2005-2006 Executive Budget. Emergency contracts can only be let most efficiently if the $200,000 emergency threshold provision is maintained. It is estimated that OGS would incur over $2 million in additional annual costs without this provision.

Part P – Make permanent the authorization for up to 15-year real estate leases for State agencies.

Enactment of this bill is necessary to implement the 2005-2006 Executive Budget which assumes this provision will be continued. New 15 year leases generate about $2.5 million in reduced rental costs per year.

Part Q – Authorize the use of owner-controlled insurance.

Enactment of this bill is necessary to implement the 2005-06 Executive Budget, which assumes $241,000 in General Fund savings in reduced insurance premium costs for capital projects resulting from the bill. The estimated General Fund savings are expected to grow to about $686,000 in 2006-07, $1.1 million in 2007-08 and $1.3 million in 2008-09.

Part R – Make permanent the authorization for centralized purchasing of commodities and services.

Enactment of this bill is necessary to implement the 2005-2006 Executive Budget, which assumes that these provisions will be continued. The cost avoidance resulting from continuing these provisions is estimated to approach $800 million.

Part S – Authorize the use of traffic law enforcement cameras at work zones, dangerous stretches of highway and traffic-light intersections.

Enactment of this bill is necessary to improve public safety, and to implement the 2005-2006 Executive Budget, raising approximately $15 million in net revenue next year, and $33 million when fully annualized. Local governments opting to install red-light cameras will benefit financially as well.

Part T – Clarify the provisions for administration of the State and local wireless communications service surcharges.

Enactment of this bill is necessary to implement the 2005-2006 Executive Budget, which includes $3.5 million in additional revenue from clarifications to wireless services covered by the surcharge.

Part U – Add electricity, insurance and risk management to the OGS services available to State agencies, public authorities and municipalities.

Enactment of this bill is necessary to implement the SFY 2005-2006 Executive Budget, which includes $2.7 million in General Fund savings from the bulk electricity purchase initiative. These savings will partially offset the cost of State agencies' purchase of green power.

Part V – Clarify administration of the Employee Health Insurance Fund.

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

Part W – Authorize miscellaneous fiscal provisions.

Enactment of this bill is necessary to implement the 2005-06 Executive Budget. Such legislation is enacted annually to authorize loans budgeted in the financial plan but that do not have permanent statutory authorization, as well as to provide for other transactions necessary to maintain a balanced financial plan. This bill is also necessary to reimburse projected Capital Projects Funds spending with the proceeds of bonds sold by public authorities, to maximize debt service savings from State-supported refundings, to ensure the continued tax-exempt status and interest rate of certain outstanding General Obligation and Authority Bonds, and to permit the State to carry out basic administrative functions.

Part X – Create a new performance-based Aid and Incentives for Municipalities (AIM) Program.

Enactment of this bill is necessary to implement the 2005-06 Executive Budget, which includes funding for Aid and Incentives for Municipalities of $1.06 billion. This amount includes an additional $48 million in 2005-06 for aid increases to cities, $1.1 million to support increases to towns and villages and $5.5 million for the new SMSI initiative.

Part Y – Authorize comprehensive mandate relief for localities.

This bill provides fiscal relief for local governments by repealing restrictive mandates and promoting reforms that will reduce local operating costs.

Part Z – Create a new Co-STAR tax rebate for eligible STAR recipients throughout the State.

Budget implications are dependent on the number of participating localities that annually qualify by holding budget increases under the prescribed level each year. Estimates assuming full participation are: SFY 2006-07: $66.8 million; SFY 2007-08: $146.3 million; and, SFY 2008-09: $308.9 million.

Part AA – Facilitate the merger and consolidation of local governments.

This bill promotes local government reforms that will lead to a reduction in local operating costs and has no fiscal impact on the State.

Part BB – Provide for independent review and public comment on pension funding changes, and reconsideration of the 2005-06 contribution rates.

Enactment of this bill is necessary to implement the 2005-06 Executive Budget. Reconsideration of recent actuarial funding changes by the Comptroller could result in savings of $621 million to local governments and $367 million to the State ($321 million in the General State Charges Budget and $46 million in the Judiciary Budget) in the 2005-06 fiscal year.

EFFECTIVE DATE:

Part A – Permit use of “aggregate weight” standard.

The bill takes effect immediately.

Part B – Extend authorization for deposits into the Armory Rental Account.

This bill takes effect April 1, 2005.

Part C – Extend the Tuition Recruitment and Incentive program for members of the State’s organized militia.

This bill will take effect April 1, 2005.

Part D – Extend the period for processing certain parole violation warrants.

This bill takes effect immediately.

Part E – Extend the authorization to fund public safety efforts with motor vehicle law enforcement fees.

This bill takes effect April 1, 2005.

Part F – Extend various criminal justice programs and fees.

The bill takes effect April 1, 2005.

Part G – Provide compensation for the State employee-victims who were killed or injured during the 1971 inmate uprising at the Attica Correctional Facility, or their survivors.

The bill takes effect April 1, 2005.

Part H – Merge the Division of Probation and Correctional Alternatives into the Division of Criminal Justice Services.

This bill takes effect April 1, 2005.

Part I – Raise the compensation for the position of Superintendent of State Police, to be commensurate with the current duties and responsibilities of this position.

The bill takes effect April 1, 2005.

Part J – Permit quarterly reimbursement to the Office of Court Administration from the Indigent Legal Services Fund.

This bill is effective April 1, 2005.

Part K – Extend the Temporary State Commission of Investigation.

This bill takes effect April 1, 2005.

Part L – Merge the Public Employment Relations Board and the State Employment Relations Board to create the State Labor Relations Board.

This bill takes effect 30 days after enactment and applies to all actions and proceedings pending on that date.

Part M – Establish information requirements and filing fees for the State Labor Relations Board.

This bill takes effect immediately.

Part N – Increase the maximum civil penalty for unfair business practices.

This bill takes effect immediately.

Part O – Make permanent the authorization for awarding emergency construction contracts.

This bill takes effect on April 1, 2005.

Part P – Make permanent the authorization for up to 15-year real estate leases for State agencies.

This bill takes effect April 1, 2005.

Part Q – Authorize the use of owner-controlled insurance.

This bill takes effect immediately.

Part R – Make permanent the authorization for centralized purchasing of commodities and services.

This bill takes effect April 1, 2005.

Part S – Authorize the use of traffic law enforcement cameras at work zones, dangerous stretches of highway and traffic-light intersections.

This bill takes effect immediately.

Part T – Clarify the provisions for administration of the State and local wireless communications service surcharges.

This bill takes effect on the first day of the sales tax quarter to begin at least ninety days after it becomes law. Therefore, should the Executive Budget become law prior to April 1st, the bill will take effect July 1st; should the Executive Budget be enacted between April 2nd and July 1st , the bill will take effect October 1st.

Part U – Add electricity, insurance and risk management to the OGS services available to State agencies, public authorities and municipalities.

The bill takes effect immediately.

Part V – Clarify administration of the Employee Health Insurance Fund.

This bill takes effect immediately.

Part W – Authorize miscellaneous fiscal provisions.

This bill takes effect immediately and has full force and effect on April 1, 2005.

Part X – Create a new performance-based Aid and Incentives for Municipalities (AIM) Program.

This bill takes effect April 1, 2005.

Part Y – Authorize comprehensive mandate relief for localities.

Most provisions are effective immediately; however, section one shall not apply to any public arbitration panel appointed prior to the effective date of such section; sections two through seventy-one and eighty-nine through ninety-one of this act shall control all contacts advertised or solicited for bid on or after the effective date of this act under the provisions of any law requiring contracts to be let pursuant to provisions of law amended by this act; sections seventy-seven through eighty shall apply to all judgments entered and all accrued claims paid on or after such date; and provided that jurisdiction will move to the Court of Claims 180 days after the passage of the Act.

Part Z – Create a new Co-STAR tax rebate for eligible STAR recipients throughout the State.

This bill takes effect immediately.

Part AA – Facilitate the merger and consolidation of local governments.

This bill takes effect immediately.

Part BB – Provide for independent review and public comment on pension funding changes, and reconsideration of the 2005-06 contribution rates.

This bill takes effect April 1, 2004.