2006-07 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 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 A); to amend the state finance law and the executive law, in relation to creating a permanent program of aid and incentives for municipalities; and to repeal certain provisions of the state finance law relating thereto (Part B); 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 facilities development corporation act, chapter 560 of the laws of 1980 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 establishing a United Nations development district and formulating and administering plans for the development of such district, chapter 35 of the laws of 1979 appropriating funds to the New York state urban development corporation, chapter 735 of the laws of 1979 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 and 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 relation to the authorization of inter-municipal agreements; to amend the general municipal law, in relation to local government procurement practices; 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 and 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, relating to the requirements for separate contracts for certain public work; to repeal subdivisions (a) and (b) of section 4545 of the civil practice law and rules, relating to admissibility of collateral source of payment; and to repeal subdivision (e) of rule 4111 of the civil practice law and rules, relating to itemized verdicts in certain actions against a public employer for personal injury and wrongful death (Part C); to amend the state finance law, in relation to creating a new state assistance program for eligible cities and eligible municipalities in which a video lottery gaming facility is located (Part D); establishing the New York state pension reform task force (Part E); to amend the civil service law and 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 such funds and the effectiveness thereof (Part F); to provide a temporary retirement incentive for certain public employees (Part G); in relation to providing for the administration of certain funds and accounts related to the 2006-2007 budget; in relation to authorizing certain payments and transfers; to amend the state finance law, in relation to the school tax relief fund; in relation to the collection and processing of civil fingerprints; to amend the New York state medical care facilities finance agency act, in relation to the issuance of bonds; 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 61 of the laws of 2005, relating to temporary loans and fund transfers, in relation to the issuance of bonds; in relation to awarding contracts by the office of technology for the consolidated data center facility; to amend the public authorities law, in relation to the maximum amount of bonds that may be issued; 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 financing of the Elk street parking garage building located in the city of Albany; to amend the public authorities law, in relation to the issuance of bonds; to amend the state finance law, in relation to issuance of certificates of participation, 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 H); to amend the civil service law, in relation to the authorization of temporary appointments for information technology projects; and to amend the retirement and social security law, in relation to establishing a new defined contribution benefit (Part I); 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 eliminating the expiration of provisions of the state finance law relating to purchasing services and commodities; to amend the state finance law, in relation to a waiver of prior written consent for assignments of certain contracts under certain limited circumstances; to amend the state finance law and the economic development law, in relation to increasing discretionary purchasing thresholds for procurements, approval thereof by the comptroller and publication of notice of the procurement opportunity; to amend the general municipal law, in relation to increasing discretionary purchasing thresholds for procurements; to amend the state finance law, in relation to providing technical and substantive improvements in the procurement of commodities and services, establishing the advisory council on vendor responsibility database, the definition of “responsible”, enhancing the policy making authority of the state procurement council and the notice required to be provided of the sale of state property; to amend chapter 62 of the laws of 2003 amending the general municipal law and the county law relating to expanding the authority of a political subdivision or district to purchase materials or contract for services, in relation to the effective date of certain provisions thereof; to direct the division of minority and women's business development to study levels of qualification and participation; and to repeal subdivision (a) of section 41 of part X of chapter 62 of the laws of 2003 amending the general municipal law and the county law relating to expanding the authority of a political subdivision or district to purchase materials or contract for services, relating to the expiration of certain provisions thereof (Part J); to amend the alcoholic beverage control law, in relation to the filing of a computer file of required price schedules, in such manner and format as the authority may direct; and in relation to sums of civil penalties that may be imposed, and in relation to general rule making powers (Part K); to amend chapter 691 of the laws of 2003 amending the general business law and the executive law relating to enacting the New York Motor Fuel Marketing Practices Act and to amend the executive law, in relation to the prosecution of complaints referred to the attorney general by the consumer protection board (Part L); to amend the state finance law, in relation to broadening the allowable uses of funds deposited into the criminal justice improvement account (Part M); 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 and in relation to establishing a photo-monitoring program to impose fines for failing to obey posted speed limits (Part N); to amend the correction law, in relation to amending the notification process for correctional facilities that are to be closed and a reuse has been approved as part of the enacted budget (Part O); to amend chapter 62 of the laws of 2003, amending the county law and other laws relating to assigned counsel, in relation to criminal history search fees and the legal services assistance fund (Part P); 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; 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; to amend chapter 55 of the laws of 1992 amending the tax law generally and enacting the omnibus revenue act of 1992, in relation to extending the expiration and repeal thereof; to amend chapter 57 of the laws of 2000 amending the state finance law relating to a report on automobile theft prevention activities of the state police, in relation to extending the expiration and repeal thereof; and to amend the executive law, in relation to extending the applicability of the plan of operation and grant award process of the New York motor vehicle theft and insurance fraud prevention demonstration program and the expiration thereof (Part Q); to amend the criminal procedure law, the executive law, the general municipal law and the penal law, in relation to the payment of financial obligations by credit card, electronic monitoring, drug testing, probation fees and bail monies; and to amend chapter 55 of the laws of 1992, amending the tax law and other laws relating to taxes, surcharges, fees and funding, in relation to extending the expiration of certain provisions of such chapter (Part R); to amend the penal law, in relation to release on parole, conditional release and presumptive release; and to repeal subdivision 2 of section 70.40 of such law relating to conditional release of persons serving definite sentences of imprisonment (Part S); to amend the county law and the tax law, in relation to clarifying the applicability of the state wireless communications service surcharge, applying the administrative and enforcement provisions of the tax law to such surcharge, imposing such surcharge on prepaid wireless communications service and providing a safe harbor for providers of prepaid wireless communications services, and conforming the base of the city and county wireless communications service surcharges to that of the state wireless communications service surcharge; and to repeal certain provisions of the county law relating thereto (Part T); to amend the Patriot Plan, in relation to extending the applicability of a provision thereof for the suspension of public retirement system loan repayment obligations (Part U); to amend the civil service law, in relation to the annual filing of collective bargaining information and imposing a fee therefor (Part V); to amend the criminal procedure law, in relation to business records as evidence in grand jury proceedings (Part W); to amend the state finance law and the executive law, in relation to centralized services provided by the office of general services (Part X); to amend the penal law, in relation to aggregate weight standards for controlled substance offenses (Part Y); to amend the real property tax law, in relation to the assessment of state owned lands; and to amend chapter 163 of the laws of 2005 relating to the allocation of payments received in lieu of taxes in certain cases, in relation to the allocation of such payments (Part Z); and to amend the public lands law and the public authorities law, in relation to state aid on certain state-leased or state-owned lands (Part AA)

PURPOSE:

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

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

This bill amends the General Municipal Law, the Municipal Home Rule Law and the Village Law to provide a framework for merging 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), or 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.

Currently, under Village Law and Town Law, dissolutions and consolidations are locally permitted. However, there is no provision in existing law that speaks to cities and counties. This bill sets forth a recommended procedure for all levels of government that includes the creation of a study committee, ancillary agreements, and a public hearing for initiating and implementing the consolidation or merger process.

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

Part B – Create a permanent Aid and Incentives for Municipalities (AIM) Program with increases in financial assistance, fiscal performance requirements and enhanced Shared Municipal Services Incentives (SMSI) Program.

This bill creates a permanent program of Aid and Incentives for Municipalities (AIM), which will provide property tax relief with annual performance-based increases in State aid and financial incentives for municipalities to reduce operating expenses.

This bill repeals Sections 54 and 54-c of the State Finance Law, permanently replacing revenue sharing and unrestricted aid programs that existed in prior years with the Aid and Incentives for Municipalities (AIM) Program.

Enacted as a one-year program in SFY 2005-06, AIM improved the State’s policies on aid to municipalities and minimized local property tax growth by consolidating the various unrestricted aid programs into one funding stream, linking State aid increases to fiscal performance and providing financial incentives for municipalities to streamline operations through a new Shared Municipal Services Incentive (SMSI) grant program.

This bill builds upon the 2005-06 AIM initiative with a permanent program that will provide property tax relief through: (1) additional State aid increases to municipalities in 2006-07 and in future years; (2) stronger fiscal performance requirements; and (3) an expanded shared services incentive grant program. Key sections of the bill are as follows:

• SFY 2006-07 increases in State aid. In 2006-07, eligible cities will receive increases in financial assistance ranging from 3.25 percent to 11 percent above 2005-06 AIM funding levels. The largest increases are targeted to high need cities, which are determined based upon a city's population and value of real property per capita. When combined with the 12.75 percent increase provided under the 2005-06 AIM program, these high need cities will receive a 25 percent increase in aid over the two-year period. Towns and villages will receive a 3.25 percent increase in 2006-07 with a minimum of $100 in additional aid.
• AIM funding in SFY 2007-08 and subsequent years. Beginning in 2007-08, all cities, towns and villages outside of New York City will receive a minimum annual increase of 2.5 percent. Certain cities can qualify for additional AIM funding if they meet fiscal performance criteria. These fiscal performance awards, when combined with the minimum annual increases, will provide a total increase in financial assistance equal to 10 percent for high need cities and 7.5 percent for moderate need cities. The determination of high and moderate need cities is based upon a city's population and full valuation per capita.
• Accountability requirements for cities. As a condition of receiving additional AIM funding in 2006-07 and fiscal performance awards in subsequent years, cities will need to certify that they have: (1) used these AIM increases for real property relief; (2) pursued cost saving efficiencies through shared service arrangements or other government consolidation initiatives; and (3) developed multi-year financial plans. The additional aid must be used to reduce the city’s property tax levy, support investments in efficiency and productivity initiatives, or address projected budget gaps. New AIM funding cannot be used to support increased costs resulting from new collective bargaining agreements.
• Criteria for fiscal performance awards. Starting in 2007-08, cities that fall into the high and moderate need categories may apply for a fiscal performance award. To qualify, a city will need to file a fiscal performance report documenting that the city has: (1) limited growth in spending to the lesser of 120 percent of the change in the Consumer Price Index or 4 percent; (2) implemented cost saving efficiencies; and (3) offered employee health care benefits equal to or less than the State's per employee cost of health care benefits for its employees.
• Expanded SMSI program. The current SMSI program will be expanded and will offer incentive awards targeted to shared highway services, local health insurance savings initiatives, countywide shared service initiatives and local consolidations, and mergers. This bill would also authorize the Department of State to contract with academic institutions for technical assistance related to local cooperative efforts and the development of a statewide database of shared services agreements. In addition, special improvement, fire, fire alarm and fire protection districts will be added to the definition of municipality as it relates to this program.

Building upon last year’s success in linking aid increases to local fiscal performance, this bill provides additional State aid increases for local governments and includes new performance criteria to directly encourage property tax relief in cities. Beginning in 2007-08, AIM becomes a full performance-based program, thereby strengthening the emphasis on local property tax relief efforts. Finally, the 2006-07 AIM program enhances State support for local government efficiencies by increasing SMSI funding for shared services, consolidations and mergers, expanding program eligibility and targeting specific municipal services and expenditures.

Part C – Authorize comprehensive mandate relief initiatives for localities and authorize the indexing of interest on court judgments to market rates.

This bill increases local government flexibility, removes long-standing, State-imposed impediments to efficient government operation and provides a framework for ensuring the continued fiscal stability of New York’s local governments.

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, 89 through 91, and sections 96 and 97 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. All other states, federal agencies and private developers have this flexibility which assures 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 98-102 expand procurement options by allowing local governments to consider best value versus lowest bid, piggyback off other states’ contracts, and access GSA Schedule 70 Federal contracts for information technology products and services.

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 D – Establish a new State aid program for municipalities in which a video lottery facility is created.

This bill creates a new General Fund State aid program for certain municipalities in which a video lottery gaming facility is located.

This bill adds a new Section 54-l in State Finance Law to establish a General Fund State aid program for certain municipalities in which a Video Lottery Terminal (VLT) facility is located. State aid equal to 3.5 percent of revenue generated from a VLT facility will be distributed to eligible municipalities, subject to certain limitations, beginning in the 2007-08 State fiscal year. The City of Yonkers and New York City will each receive $20 million in their 2006-07 fiscal year and other eligible municipalities will receive up to $700,000 in additional State aid.

This new State aid would be used to increase support for public schools in eligible cities with dependent school districts. Other eligible municipalities are authorized to use the aid to offset local costs associated with VLT facilities and to minimize property taxes.

Part E – Establish a State Task Force on Pension Reform.

In recent years, pension costs have risen to a level where they are placing a significant financial strain on the budgets of the State and local governments. In the absence of fundamental changes to the State’s retirement systems, these costs will remain vulnerable to external factors.

To achieve financial stability in this area, pension costs need to be fixed, predictable, and more responsive to budgetary constraints, demographic trends, and human resources needs. Necessary changes to maintain a fair, sound, and affordable pension system will require thorough consideration. Thus, this bill creates the New York State Pension Reform Task Force to evaluate potential modifications to pension benefits.

The task force will contain eighteen members from a wide spectrum of stakeholder groups, including the Governor, the Legislature, the State Comptroller, the City of New York, local governments, the New York State Teachers’ Retirement System, retirees, and public employee unions. The task force will issue a final report with its recommendations no later than October 31, 2006. Topics to be discussed in the report will include but not be limited to: benefit designs to support long-term workforce planning strategies; alternative and more affordable benefit designs; alternative defined benefit funding methodologies; establishment of a new defined contribution or hybrid defined benefit/defined contribution pension plan; and alternative governance and oversight structures.

Part F – Authorize use of certain interest earnings to offset costs of health insurance for public employees and retirees.

This bill makes a new technical correction to allow the Health Insurance Fund, Dental Fund and Group Life Insurance Fund to retain interest earned from monies in such fund. This bill also makes permanent technical amendments, enacted by the Laws of 2004, regarding the administration of the Employee Health Insurance Fund.

Health, Dental and Group Life Insurance Funds Interest Earnings:

Sections one through three of this bill allow the Health Insurance Fund, Dental Fund and Group Life Insurance Fund to retain interest earned on deposited monies. Historically, these funds have been allowed to keep the earned interest. However, certain accounting changes intended for other funds were effected in 2005 which inadvertently redirected interest earnings away from the Health, Dental and Life Insurance funds. This correction will insure that the interest earnings be used as intended to benefit participants in these benefit plans.

Employee Health Insurance Fund:

Section four of this bill makes permanent the 2004 law clarifying the authority of the Department of Civil Service to administer the State Employee Health Insurance Fund. The original chapter was approved as part of the 2004-05 budget and was subsequently extended in the 2005-06 budget for one year and is set to expire March 31, 2006. 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. A permanent language change 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 G – Authorize a targeted retirement incentive focused on positions that can be eliminated through organizational restructuring, streamlining, and shared services efficiencies.

This bill would establish a temporary retirement incentive program for certain public employees to assist in streamlining the workforce while also minimizing layoffs.

This bill would establish a retirement incentive for certain State executive branch employees and local public employees.

This bill would apply to members of the New York State and Local Employees Retirement System; New York City Employees Retirement System; New York State Teachers Retirement System; New York City Teachers Retirement System; and New York City Board of Education Retirement System. The members of the Police and Fire Retirement Systems are not included because of the existing 20 year retirement option.

This program is very similar to the traditional retirement incentive previously offered by this State. Under this program, employees would receive one month of credit for every year of their service, up to a total of three years or 36 months.

Section 1 defines terms used in the bill and establishes eligibility requirements for participation in the retirement incentive program. Eligibility is determined at employer discretion and excludes agency heads and elected officials. An employer who elects to participate in the retirement incentive program is required to provide a 30 to 90 day open period to allow eligible employees adequate time to consider the incentive. Eligibility is targeted to positions that can be eliminated for reasons of economy, consolidation, abolition or curtailment of governmental activities. An eligible position can also include a title into which an employee could be transferred to avoid a layoff.

Section 2 establishes the criteria to be considered in determining whether positions should be eligible for participation in the retirement incentive program. This determination shall consider whether the abolition of positions within a title would unacceptably reduce the level of patient care, pose health and safety risks, or result in adverse budgetary implications.

Section 3 provides that eligibility for the retirement incentive shall be first determined on the basis of seniority and requires eligible employees who intend to participate in the incentive program to provide written notice to their employer 21 days prior to the end of the program's open period.

Section 4 requires certain employers to enact a local law or resolution, as appropriate on or before August 31, 2006 to take advantage of the program. School districts must do so by July 26, 2006. This section also provides that the retirement incentive will not be available to persons otherwise eligible to receive benefits under any other retirement incentive or severance program unless such person agrees to waive payment under the other program. In addition, this section authorizes the Mayor of the City of New York to declare employees of the community colleges of the City University of New York ineligible for the program by filing a notice with the University Chancellor within 30 days of the effective date of this act.

Section 5 requires employees to be in active service on the effective date of this act and continue in active service up to the date immediately preceding commencement of the program open period. Eligible employees must either be currently eligible to retire or be at least 50 years of age with ten or more years of service. Employees who participate in a pension plan that allows for retirement after 25 years of service without regard to age are eligible for the program as long as they meet the 25-year requirement, which can be achieved with the service credit provided by the incentive.

Section 6 establishes the retirement incentive benefit as one-twelfth of a year of additional retirement service credit for each year of pension service, up to a maximum of 3 years of additional retirement service credit. The benefit is subject to reduction for early retirement based on the employee’s tier, age and years of service. Eligible employees who participate in an optional retirement program would receive a retirement incentive of one-twelfth for each year of service multiplied by 15 percent multiplied by the employee’s annual salary, up to a maximum benefit equal to 45 percent of salary.

Section 7 provides that State employees who participate in the program may defer participation in the health insurance program as well as the calculation of the value of available sick leave credits to offset the retiree’s share of health insurance premiums. In addition, State employees who retire pursuant to this act will remain eligible for certain lump sum payments authorized under collective bargaining agreements. This section also authorizes the payment of certain leave compensation in 3 installments over a 2-year period to New York City employees.

Section 8 requires the elimination of any position vacated by a State employee receiving the retirement incentive, other than a position supported by Special Revenue Funds. An exception to this rule is made where another State employee can be appointed, transferred or reassigned to the vacated position to avoid a layoff.

Section 9 provides that local government employers and the State University of New York are not required to eliminate positions that have been vacated as a result of the retirement incentive if they can demonstrate savings of at least one-half of the total amount of the base salary of employees who receive the incentive for the 2-year period subsequent to the program.

Section 10 provides that the incentive cannot result in a pension to an employee exceeding the limits of Internal Revenue Code (IRC) 415. However, as the IRC 415 limit is increased in subsequent years, the retirement benefit which would otherwise have been paid to any employees originally affected by the limit will be paid to the extent permitted by the new IRC 415 limit.

Section 11 requires an employee receiving the retirement incentive to forfeit the benefit of such incentive if that employee reenters public service and joins or rejoins any public retirement system in the State.

Section 12 provides that the retirement incentive is not subject to any maximum retirement benefit limitation pursuant to Retirement and Social Security Law (R&SSL).

Section 13 makes R&SSL 430, which requires an employer to pay for any benefit or benefit improvement in the fiscal year it becomes effective, inapplicable to any benefit or benefit improvement provided by this bill.

Section 14 requires employers to pay the pension costs of offering a retirement incentive program over a period not to exceed 5 years commencing in the State fiscal year ending March 31, 2008.

The 2006-07 Executive Budget calls for workforce reductions through organizational restructuring, streamlining and shared services efficiencies. This bill would streamline the public sector workforce through the elimination of specific positions determined to be less critical to governmental operations.

Part H – Authorize cash transfers, temporary loans, and certain bond caps; and provisions relating to general fiscal and debt management issues.

This bill provides the statutory authorization necessary for the administration of funds/accounts included in the 2006-07 Executive Budget. Specifically, it (1) authorizes temporary loans and the deposit of certain revenues to specific funds/accounts, (2) continues or extends various provisions of Chapter 59 of the Laws of 2004 in relation to capital projects and certain certifications, (3) authorizes the issuance of certificates of participation, (4) increases existing bond caps for various capital programs and (5) provides other miscellaneous provisions including enhanced interchange flexibility related to centralized processing of civil fingerprints. The bill also provides the statutory authorization for the Office of General Services (OGS) and the Division of the Budget (DOB) to carry out certain administrative and programmatic functions and repeals statutory authorization relating to dormant funds.

Section 1 authorizes specific State funds and accounts to receive temporary loans for the 2006-07 fiscal year.

Section 2 authorizes specific Federal funds to receive temporary loans for the 2006-07 fiscal year.

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

Section 9 authorizes the State Comptroller to deposit funds to the banking services account.

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

Section 11 amends State Finance Law to permanently authorize the deposit of funds into the School Tax Relief Fund.

Section 12 authorizes the State Comptroller to receive for deposit moneys to funds and accounts as identified by the Director of the Budget.

Section 13 amends State Finance Law to allow payment of prior years’ liabilities.

Section 14 authorizes the interchange of appropriations related to the collection and processing of civil fingerprints to any other appropriation, without limit, for a consolidated statewide fingerprint system.

Section 15 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.

Section 16 requires the Director of the Budget to provide monthly reports to the State Comptroller on capital disbursements not currently reflected in the State central accounting system (but which are reflected in the GAAP statements) for inclusion by the State Comptroller in the cash spending report.

Sections 17 through 24 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 2006 into the Capital Projects Fund.

Section 25 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 26 increases the maximum amount of Mental Health Facilities Improvement Bonds that may be issued to finance capital projects for the Office of Mental Health, Office of Mental Retardation, and the Office of Alcoholism and Substance Abuse services.

Section 27 continues authorizations for disbursements for hazardous waste site remediation projects.

Sections 28 and 29 amend paragraphs (a) of subdivisions two and five, respectively, of section 47-e of the Private Housing Finance Law, as amended by Chapter 61 of the Laws of 2005, 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 30 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 31 authorizes the maximum amount of State-supported bonds that may be issued to finance capital projects for the Division of State Police.

Section 32 authorizes the maximum amount of State-supported bonds that may be issued to finance capital projects for the Office for Technology.

Section 33 amends section 1285-p of the Public Authorities Law, as amended by section 7 of part a of chapter 63 of the Laws of 2005, 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 34 amends Chapter 61 of the Laws of 2005 to increase the maximum amount of State-supported bonds that may be issued by UDC to finance capital projects related to State facilities.

Sections 35 and 36 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 State University of New York (SUNY) and the City University of New York (CUNY) capital projects.

Section 37 increases the maximum amount of bonds that may be issued for student housing at State University facilities.

Section 38 increases the amount of bonds that may be issued for community colleges.

Section 39 makes permanent an amendment 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 40 authorizes the maximum amount of State-supported debt that may be issued by the Environmental Facilities Corporation to finance the Department of Agriculture and Markets food laboratory.

Section 41 allows greater flexibility in the issuance of State Personal Income Tax Revenue Bonds by select public authorities.

Section 42 increases the maximum amount of certificates of participation.

This bill is necessary to execute a balanced financial plan in accordance with the 2006-07 Executive Budget. Such legislation is enacted annually to authorize the transfer of funds 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.

In addition, State Finance Law requires statutory authorization for funds/accounts to receive temporary loans from the State Treasury. Similar provisions were enacted to implement the 2005-06 Budget and need to be extended to implement the 2006-07 Budget.

Part I – Establish an information technology project job title, including a defined contribution retirement benefit, effective for five years.

This bill permits Civil Service to authorize temporary appointments on a full-time or regular part-time basis, not to exceed 60 months and without examinations, for the design, development, or implementation of information technology projects.

This bill amends Civil Service Law to permit temporary appointments for up to 60 months, without examination, for individuals rendering professional, scientific, technical or other expert services on a full-time or a regular part-time basis. These temporary positions will be specifically established to design, develop or implement information technology related projects.

Currently, temporary appointments are limited to 18 months.

The existing 18 months duration for temporary appointments is significantly less than the timeframe needed to complete many large information technology projects. The recommended 60 months limit will alleviate uncertainty about employment eligibility for long enough to complete such projects.

This is a new legislative proposal.

Part J – Extend and amend the 1995 Procurement Stewardship Act.

This proposal makes permanent the 1995 Procurement Stewardship Act which governs the State’s purchase of commodities and services and establishes a new advisory council on vendor responsibility. The proposal also updates and modernizes various other provisions related to contract approval by the Office of the State Comptroller (OSC), State Agency contract reporting and advertising requirements and increases representation on the State Procurement Council.

The 1995 Procurement Stewardship Act established the technical and procedural requirements governing the purchase of commodities and services and mandated an open and competitive procurement process. The heart of the Act, section 163 of State Finance Law, offers a fiscally responsible and cohesive strategy focused on best practices in purchasing and the awarding of commodity contracts based on the lowest price. Section 163 was originally set to expire in 2000, but has since been extended twice, through June 30, 2006. This bill makes section 163 permanent.

Additionally, the proposal would create an eleven member Advisory Council on Vendor Responsibility Database to recommend the advisability of establishing a centralized vendor responsibility database and develop a strategic plan for implementation.

Further, the proposal amends State Finance Law, Economic Development Law and General Municipal Law to increase the contract value thresholds that trigger OSC’s approval process; alter contract reporting and advertising requirements for State agencies; and expand the size and composition of the State Procurement Council.

Finally, the proposal directs the Division of Minority and Women’s Business Development to submit a study and recommendations relating to minority and women-owned business qualification for, and participation in, State contracts to the Governor and the Legislature on or before January 1, 2007.

Part K – Amend State Liquor Authority fine amounts and authorize confiscation of fraudulent ID’s.

This bill amends the Alcoholic Beverage Control Law (ABC) regarding the transmittal of required price schedules and increases the maximum fine amounts that may be imposed by the State Liquor Authority (SLA) in licensee disciplinary proceedings and on a person unlawfully possessing an alcoholic beverage.

ABC Law is amended to authorize the transmission of price postings in an electronic format rather than the current requirement to file paper copies. Increases in the maximum fine amounts that the State Liquor Authority may impose when disciplining licensees for various infractions, or persons unlawfully possessing alcoholic beverages, are authorized as well. Finally, the bill also clarifies the Division of Alcoholic Beverage Control’s authority to promulgate necessary rules and regulations.

By increasing the maximum fine amounts that can be imposed on errant licensees, and clearly defining the ability of the Division to establish necessary rules and regulations, this bill will enhance the deterrent effects that disciplinary proceedings have upon licensees. Higher fines, especially for multiple violations, are expected to increase compliance with the ABC Law. Specifically, increasing the fine amounts imposed on persons unlawfully possessing alcoholic beverages will deter underage drinking.

Part L – Make permanent the Motor Fuel Marketing Practices Act (MFMPA) and provide for certain investigative costs.

This bill makes permanent the Motor Fuel Marketing Practices Act (MFMPA). It also adds a new provision to the MFMPA which directs the Attorney General to recapture administrative expenses for the Consumer Protection Board when it plays a key role in the identification of cases that can be successfully prosecuted by the Attorney General.

This bill will make the Motor Fuel Marketing Practices Act permanent. The MFMPA makes predatory and discriminatory pricing practices unlawful. The Consumer Protection Board is authorized to investigate any complaints of unlawful pricing practices and work to resolve complaints by settlement. If CPB is unable to successfully negotiate a settlement, the case is then referred to the Attorney General for further action. Absent this bill, the MFMPA would expire on October 21, 2006.

If a settlement cannot be reached, CPB refers cases that require adjudication to the Attorney General for action. When such an adjudication results in the collection of costs, fines or judgments, this bill will direct the Attorney General to collect CPB’s administrative investigative expenses. CPB will utilize these funds to defray its cost to investigate cases related to consumer complaints.

Part M – Expand the use of funds deposited into the Criminal Justice Improvement Account.

This bill expands the allowable uses of funds deposited into the Criminal Justice Improvement Account.

This bill amends section 97-bb of State Finance Law to allow funds deposited into the Criminal Justice Improvement Account (CJIA) to be used for various criminal justice local assistance programs. Currently, funds in the CJIA are used exclusively to fund crime victims programs administered by the Crime Victims Board. The CJIA will fund a variety of programs that aim to reduce violent crime; limit offender recidivism; and promote cooperation and interaction among all levels of law enforcement across the State, while continuing to fully fund all crime victims programs. By broadening the allowable uses of these funds, the State can provide more resources to law enforcement to combat the incidence of crime and thereby reduce the number of residents who become victims of crime.

Part N – Authorize use of law enforcement cameras at work zones and dangerous stretches of highway.

This bill establishes a program for photo-monitoring enforcement of speeding in work zones and in designated sections of interstate highway. Further, the Department of Motor Vehicles is authorized to deny renewal and/or suspend the registration of owners who repeatedly violate the posted speed limit or the speed limit in a work zone or refuse to pay the fine.

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 of $100 on the registered owners of vehicles that have been documented exceeding the posted speed in work zones and in designated sections of interstate highways. Signs warning motorists of the speed cameras will be posted 300 yards from the work zone or location of the monitoring device. 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.

Part O – Exempt correctional facilities from the closure notification process if they are recommended to be closed and re-used for another purpose.

This bill permits the closure of State correctional facilities without adhering to the closure notification process when a facility closure with an identified reuse is approved through the Enacted Budget.

This bill adds section 79-c to the Correction Law so that the closure notification process concerning correctional facilities would not apply when a facility is recommended for closure in the Executive Budget with an identified adaptive reuse and the Legislature accepts that recommendation through enacting the Budget.

The notification process for the closure of State correctional facilities was enacted and amended as part of the enacted 2005-06 Budget.

This bill is necessary to expedite the closure and reuse of Camp Pharsalia, a Department of Correctional Services (DOCS) facility, into an Office of Mental Health (OMH) facility for the confinement and treatment of civilly committed sexually violent predators.

Part P – Increase the Criminal History Search fee to support local government agencies and not-for-profit providers of legal services.

This bill increases the fee charged by the Office of Court Administration (OCA) for a criminal history search in order to provide additional funds, through the Division of Criminal Justice Services, to local civil and criminal legal service providers and district attorney offices.

This bill amends Part J of Chapter 62 of the Laws of 2003 to increase the fee charged for an OCA criminal history search from $52 to $60. The bill also increases the portion of the fee deposited into the Legal Services Assistance Account from $9 to $12, in addition to directing $5 of the increased fee into the Criminal Justice Improvement Account to support District Attorney recruitment and retention efforts.

Currently, the portion of the criminal history search fee that is deposited into the Legal Services Assistance Account supports providers of civil and criminal legal services. These proposed actions will allow more funds to be directed to legal service providers and mitigate the impact of increased costs, workload, and staffing demands.

Part Q – Extend for five years the authorization to fund part of the State’s public safety efforts with Motor Vehicle Law enforcement fees.

This bill extends provisions to fund part of the State’s public safety efforts with motor vehicle law enforcement fees.

This bill extends provisions that direct revenue from motor vehicle law enforcement fees to the State Police Motor Vehicle Law Enforcement Account (MVLEA) and the Motor Vehicle Theft and Insurance Fraud Prevention Fund (MVTIFPF). These fees are applied to insurance policies on passenger and commercial vehicles. This revenue serves to offset costs associated with prevention of vehicle theft and insurance fraud and with highway and public safety.

The provisions increasing revenue in the MVLEA were extended in the two most recent enacted Budgets. This bill extends these provisions, including a $1 to $5 fee increase on automotive insurance policyholders, for five years.

Current law provides that a maximum of $60.4 million in motor vehicle law enforcement fees be deposited in the MVLEA. The MVLEA initially receives all fee revenue from policies on passenger vehicles. 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. All additional revenue from these vehicles is transferred to the MVLEA until the $60.4 million cap is reached. Any revenue collected in excess of the $60.4 million MVLEA cap is redirected back to the MVTIFPF. These provisions are set to expire on March 31, 2006 and July 1, 2006 respectively. This bill extends these provisions through July 1, 2011.

This bill 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, 2006. This bill extends these provisions through July 1, 2011.

The Superintendent of State Police is required to provide the Governor, the Speaker of the Assembly and Temporary President of the Senate with a report which details State Police activities related to automobile theft initiatives. This provision within State Finance Law is scheduled to expire on July 1, 2006. This bill extends this provision through July 1, 2011.

This bill also extends provisions of Executive Law which establish the MVTIFPF as well as the New York Motor Vehicle Theft and Insurance Fraud Prevention Board. This board is responsible for the development of a coordinated approach to reduce the incidence of motor vehicle theft and insurance fraud throughout the State. These provisions are set to expire on July 1, 2006. This bill extends this provision through July 1, 2011.

Part R – Authorize counties to impose various fees on probationers.

This bill authorizes counties to impose probation fees. While some counties currently impose such fees, the Attorney General has opined that the practice is technically not authorized by State law. This bill codifies current practice and allows counties to continue to charge such fees without fear of litigation.

By authorizing localities to impose various probation fees, this bill generates revenue to increase support for county probation services and augment State aid.

This bill authorizes a new supervision administration probation fee, similar to the DWI administration fee already successfully levied, as well as new fees for electronic monitoring and drug testing. In addition, supervising probation departments will be authorized to collect additional fees, up to $50 per individual, for offenders required to submit DNA samples and/or register as sex offenders. Lastly, funds retained through criminal and family court bail monies, which are specifically devoted to alternative to incarceration service plans, are increased from one percent to two percent.

Part S – Eliminate the authorization for local conditional release.

This bill eliminates local conditional release for inmates incarcerated in local jails.

This bill repeals subdivision 2 of Section 70.40 of the Penal Law to eliminate the responsibility for the Division of Parole to administer local conditional release for inmates sentenced to more than 90 days in a local jail and who have served at least 60 days of incarceration. The responsibility reverted to Parole when legislation that authorized Local Conditional Release Commissions to administer this responsibility expired in September 2005.

Current statute requires the New York State Division of Parole to make conditional release determinations for individuals sentenced to local jails. This Conditional Release Program shortens the jail time. As of September, 2005, Parole has the responsibility for community supervision of individuals released early.

Continuation of the Local Conditional Release Program requires a substantial investment of State resources in a process which results in a very small number of individuals being released early from local jails.

Part T – Clarify the administration of the State and local wireless surcharges and dedicate all State surcharge revenues to public safety and security activities.

This bill applies the administrative and enforcement provisions of the Tax Law to wireless communications service surcharges, conforms the base of the city and county wireless surcharges to that of the State wireless surcharge, clarifies certain provisions of such surcharges, consolidates numerous sections of law authorizing individual counties to levy surcharges, and amends the deposit practices and permissible uses of revenues from State and local wireless communication 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 and will provide a better mechanism for collecting the surcharges on prepaid wireless service.

This bill also consolidates thirty-seven 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. 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 – Extend the applicability of a Patriot Plan provision for temporary suspension of public retirement system loan repayments for members on active military duty.

This bill extends for two years the Patriot Plan provision that permits the temporary suspension of public retirement system loan repayments while members are on active military duty.

This bill amends section forty-three of Chapter 106 of the Laws of 2003 (Patriot Plan I), as amended by chapter 127 of the laws of 2004 and chapter 150 of the laws of 2005, to extend the current repeal date for the public retirement system loan payment suspension benefit for two additional years. Currently, this provision’s repeal date is July 1, 2006.

Part V – Establish a new annual registration fee for the Public Employment Relations Board (PERB) to be paid by public employers and employee organizations.

This bill requires public employers and public employee organizations to annually provide the Public Employee Relations Board (PERB) with accurate and timely collective bargaining information to aid PERB in fulfilling its statutory obligations and imposes graduated fees to accompany such filings.

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 the Public Employee Relations Board (PERB) on an annual basis. It also imposes a $75 administrative fee on the annual submissions of both the employee organization and public employer, and allows PERB to increase future fees by rule.

Presently, PERB is authorized to request collective bargaining data to assist in carrying out its statutory duties. However, voluntary compliance with PERB’s requests has been less that 50 percent and hinders the agency’s ability to maintain a complete and accurate database. This undermines PERB’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 statewide collective bargaining issues.

This bill will increase compliance and make PERB’s database more comprehensive, thereby providing timely and accurate information to all interested parties. In addition, the new $75 filing fee will help defray the costs of PERB services, including access to the collective bargaining database.

A similar bill was introduced as part of the 2005-06 Executive Budget, but was not passed.

Part W – Authorize the use of sworn affidavits instead of live testimony for the admission of business records into evidence in grand jury proceedings.

This bill permits the admissibility of business records into evidence for grand juries by affidavit, precluding the need for personal appearances.

This bill amends Criminal Procedure Law to allow for the admission of business records into evidence in grand jury proceedings by way of sworn affidavit instead of live testimony by the custodian of records.

Section 190.30 of the Criminal Procedure Law covers the rules of evidence for grand jury proceedings. It establishes rules concerning professional reports prepared by public servants or from others employed in scientific or additional professional fields. It also covers what is permissible within written or oral statements submitted under oath for grand jury proceedings.

With the advance of the Internet and telecommunications, many criminal prosecutions, including child pornography, Internet fraud and identity theft cases, now require business records from companies in locations throughout the country. Current law requires that when business records are presented to a New York grand jury, an individual employed by the company must physically appear and testify that the business records were prepared and retained in the ordinary course of business.

Child pornography, organized crime, and identity theft prosecutions are increasingly endangered by the inability of prosecutors to obtain such witnesses from businesses around the country in a timely manner. Additionally, prosecutors incur the cost of transporting witnesses, and businesses suffer economic loss from lost manpower hours as a result of the current system.

This bill proposes the same process for presenting business records as is used for presenting scientific evidence, an expert’s valuation testimony and a victim’s testimony regarding unauthorized possession of property.

This bill was introduced as part of the 2005-06 Executive Budget, but was not passed.

Part X – Authorize OGS to centrally purchase electricity and other commodities and services for use by State agencies, authorities and localities.

This bill authorizes the Office of General Services (OGS) to expand the centralized services it offers to State agencies to include purchasing electricity in bulk, and makes several centralized services available for purchase by public authorities, public benefit corporations and localities.

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 codifies OGS’ role in centrally purchasing renewable, or so-called “green” power for use by its centralized services customers. This will facilitate State agency efforts to include “green” power in their electricity purchases, to meet the annual targets established by Executive Order 111.

In addition, the bill makes several specific centralized services offered by OGS available for purchase by political subdivisions, public benefit corporations and public authorities, including electricity and/or fuel purchasing, automotive services, communications services, computer services, building design and construction management services, and the distribution of State surplus personal property.

Part Y – Permit a new standard using “aggregate weight” for lab analysis of illegal drug evidence.

This bill allows for timelier processing of forensic evidence and enables New York State Penal Law to conform to other states by measuring controlled substances in terms of aggregate rather than pure weight in defining quantities for various drug offense levels. Aggregate weight refers to the total weight of a substance containing illegal drugs

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.

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

This bill was introduced as part of the 2005-06 Executive Budget, but was not passed.

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. 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. Currently, 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 Z – Contain taxes paid on State lands and prevent inequitable assessments on State-owned lands.

This bill makes necessary reforms to the system under which the State makes property tax payments associated with State owned lands to local governments.

This bill amends the Real Property Tax Law to require certain localities to treat State owned lands within their jurisdiction fairly in determining their assessed value. This bill also amends the Real Property Tax Law to adjust the method by which the values of certain properties which are under judicial review are added to a jurisdiction’s base proportions of homestead and non-homestead property. It also makes a technical amendment to a bill that was enacted into law in July 2005 dealing with payments in lieu of taxes (PILOT).

In localities which have conducted jurisdiction-wide revaluations since 1991, the Real Property Tax Law provides that assessments of taxable State land may only be increased when another revaluation is conducted. However, localities which have not conducted revaluations since 1991 are not subject to this limitation, so they have the ability to increase State land assessments while leaving most or all other assessments alone. In certain cases, this loophole in the law has led to abuses by a few localities. In these situations, the assessed value of State owned lands becomes artificially inflated, resulting in dramatically increased tax payments.

This bill remedies this inconsistent provision. This bill creates one standard whereby localities can only increase the assessed values of State owned land as part of a locality-wide reassessment. In the absence of a locality-wide reassessment, the assessed value of State owned lands in these localities shall not exceed the amount entered on the assessment roll in 2004 or in the most recent revaluation, whichever is later.

Currently, prior to conducting a locality-wide reassessment, localities have the right to lock in the ratio of taxes paid on their base proportions of homestead and non-homestead property. This right even applies to the value of a sizeable property which is under judicial review — thus permitting the locality to include the taxes associated with the disputed property. This results in an excessively high tax rate being calculated for State owned lands and other non-homestead property for the current year and all future years. Unfortunately, if a court determines the value of the sizeable property is lower than the value assessed by the locality, the ratio is not adjusted commensurately.

This bill corrects this problem by requiring localities to use the assessed value of the disputed properties from the immediately preceding assessment roll when calculating this ratio.

Finally, the bill makes a technical amendment to Chapter 163 of the Laws of 2005, which allows certain jurisdictions to enter into a PILOT agreement with the owners of two electricity generating facilities. This bill clarifies that the payments resulting from this PILOT agreement are to be used to reduce the share of taxes allocated to the value of the non-homestead property class, thus insuring that such PILOT payments replace rather than supplement taxes paid by the commercial sector.

Part AA – Amend the schedule of PILOT payments to the City of Albany for the Empire State Plaza.

This bill amends Section 19-A of the Public Lands Law to modify the schedule of payments-in-lieu of taxes made to the City of Albany for the Empire State Plaza.

This bill will increase payments to the City of Albany to a total of $22,850,000 annually for the period 2006-07 through 2010-11 and to $15,000,000 annually for the remainder of the schedule, which is amended to extend through 2038-39.

The original payment-in-lieu of taxes schedule for the Empire State Plaza was enacted into law by Chapter 56 of the laws of 2000. It has since been amended by Chapter 692 of the Laws of 2002, Chapter 670 of the Laws of 2004, and Chapter 63 of the Laws of 2005, each of which have increased or accelerated payments made to the City.

BUDGET IMPLICATIONS:

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

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

Part B – Create a permanent Aid and Incentives for Municipalities (AIM) Program with increases in financial assistance, fiscal performance requirements and enhanced Shared Municipal Services Incentives (SMSI) Program.

Enactment of this bill is necessary to implement the 2006-2007 Executive Budget because it includes $50 million in additional funding to support increases in State aid to cities, towns and villages. In addition, the 2006-2007 Executive Budget includes $25 million in appropriations for the redesigned SMSI program.

Part C – Authorize comprehensive mandate relief initiatives for localities and authorize the indexing of interest on court judgments to market rates.

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

Part D – Establish a new State aid program for municipalities in which a video lottery facility is created.

Enactment of this bill is necessary to implement the 2006-2007 Executive Budget because it establishes a General Fund State aid program that will provide approximately $44 million in annual aid to municipalities in which a video lottery gaming facility is located beginning in the 2007-2008 State fiscal year.

Part E – Establish a State Task Force on Pension Reform.

Creation of the New York State Pension Reform Task Force will result in a one-time cost to the State of approximately $100,000, which will mainly be used for consulting services.

Part F – Authorize use of certain interest earnings to offset costs of health insurance for public employees and retirees.

Enactment of this bill is necessary to implement the 2006-2007 Executive Budget. This bill ensures that approximately $8 million in interest earnings will be credited to the applicable funds. This bill also ensures ongoing access and application of dividend earnings to support employee benefits consistent with past practice.

Part G – Authorize a targeted retirement incentive focused on positions that can be eliminated through organizational restructuring, streamlining, and shared services efficiencies.

Enactment of this bill is necessary to implement the 2006-2007 Executive Budget which anticipates a modest reduction in the State workforce.

Part H – Authorize cash transfers, temporary loans, and certain bond caps; and provisions relating to general fiscal and debt management issues.

Enactment of this bill is necessary to implement the 2006-07 Executive Budget. Such legislation is enacted annually to authorize the transfer of funds budgeted in the financial plan but that do not have permanent statutory authorization, as well as to provide for other transactions, including temporary loans from the State Treasury for cash flow purposes, 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 I – Establish an information technology project job title, including a defined contribution retirement benefit, effective for five years.

Enactment of this bill is necessary to implement the Executive Budget for 2006-2007.

Part J – Extend and amend the 1995 Procurement Stewardship Act.

Enactment of this bill is necessary to implement the 2006-07 Executive Budget which assumes that these provisions will be in full force and effect for all of 2006-07. The Procurement Stewardship Act has produced significant savings for State agencies, local governments and school districts at an annual estimated cost avoidance of $800 million.

Part K – Amend State Liquor Authority fine amounts and authorize confiscation of fraudulent ID’s.

Enactment of this bill is necessary to implement the 2006-2007 Executive Budget, which includes revenue from the increased fines.

Part L – Make permanent the Motor Fuel Marketing Practices Act (MFMPA) and provide for certain investigative costs.

Enactment of this bill is necessary to implement the 2006-2007 Executive Budget, which includes revenue associated with continued enforcement of the Motor Fuel Marketing Practices Act and the recapture of administrative expenses from other cases referred to the Attorney General for further action.

Part M – Expand the use of funds deposited into the Criminal Justice Improvement Account.

Enactment of this bill is necessary to implement the 2006-2007 Executive Budget in order to fund ongoing and new criminal justice and victims services programs, while reducing the need for General Fund support by $43 million in 2006-07 and $25 million annually beginning in 2007-08.

Part N – Authorize use of law enforcement cameras at work zones and dangerous stretches of highway.

Enactment of this bill is necessary to improve public safety, and to implement the 2006-2007 Executive Budget, generating approximately $39 million in net revenue in 2006-07, and $81 million when fully annualized.

Part O – Exempt correctional facilities from the closure notification process if they are recommended to be closed and re-used for another purpose.

Enactment of this bill is necessary to implement the 2006-2007 Executive Budget, which includes $5.2 million in DOCS operating savings associated with the closure of Camp Pharsalia, a minimum security correctional facility. An appropriation of $130 million is included in the OMH Capital Plan for the development of a new facility to house civilly committed sexually violent predators.

Part P – Increase the Criminal History Search fee to support local government agencies and not-for-profit providers of legal services.

Enactment of this bill is necessary to implement the 2006-2007 Executive Budget in order to fund ongoing and new legal services programs, while saving the General Fund $12 million in 2006-07 and $3 million annually beginning in 2007-08.

Part Q – Extend for five years the authorization to fund part of the State’s public safety efforts with Motor Vehicle Law enforcement fees.

Enactment of this bill is necessary to implement the SFY 2006-2007 Executive Budget, which includes $65.1 million in fee revenue associated with the Motor Vehicle Theft and Insurance Fraud Prevention Fund and the Motor Vehicle Law Enforcement Account.

Part R – Authorize counties to impose various fees on probationers.

Enactment of this bill is necessary to implement the 2006-07 Executive Budget, in order to allow localities to increase revenues to support local probation services.

Part S – Eliminate the authorization for local conditional release.

Enactment of this bill is necessary to implement the 2006-2007 Executive Budget, which includes $2.2 million in General Fund savings as a result of relieving the Division of Parole of the responsibility to administer this local jail release option.

Part T – Clarify the administration of the State and local wireless surcharges and dedicate all State surcharge revenues to public safety and security activities.

Enactment of this bill is necessary to implement the 2006-2007 Executive Budget, which includes $3.5 million in additional revenue from clarifications to wireless services covered by the surcharge.

Part U – Extend the applicability of a Patriot Plan provision for temporary suspension of public retirement system loan repayments for members on active military duty.

Enactment of this bill is necessary to implement the 2006-2007 Executive Budget and maintain an existing benefit for members on active military service.

Part V – Establish a new annual registration fee for the Public Employment Relations Board (PERB) to be paid by public employers and employee organizations.

Enactment of this bill is necessary to implement the 2006-2007 Executive Budget, which includes $525,000 in fee revenue.

Part W – Authorize the use of sworn affidavits instead of live testimony for the admission of business records into evidence in grand jury proceedings.

Enactment of this bill is necessary to implement the 2006-2007 Executive Budget because it will result in reduced travel and lodging costs for State and local law enforcement agencies in their attempts to secure the testimony of witnesses from businesses.

Part X – Authorize OGS to centrally purchase electricity and other commodities and services for use by State agencies, authorities and localities.

Enactment of this bill is necessary to implement the 2006-2007 Executive Budget, which includes $5 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 Y – Permit a new standard using “aggregate weight” for lab analysis of illegal drug evidence.

Enactment of this bill is necessary to implement the 2006-2007 Executive Budget because implementation of aggregate weight standards will reduce Division of State Police laboratory spending by approximately $1 million.

Part Z – Contain taxes paid on State lands and prevent inequitable assessments on State-owned lands.

Enactment of this bill is necessary to implement the 2006-07 Executive Budget. Implementing these reforms will result in annual savings to the State of approximately $3.5 million, beginning in State fiscal year 2006-07.

Part AA – Amend the schedule of PILOT payments to the City of Albany for the Empire State Plaza.

This bill increases State spending by $6 M and $6.7 M in 2006-07 and 2007-08, respectively, and by various amounts over the remaining years of the amended schedule. Enactment of this bill is necessary to implement the 2006-07 Executive Budget.

EFFECTIVE DATE:

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

This bill takes effect April 1, 2006.

Part B – Create a permanent Aid and Incentives for Municipalities (AIM) Program with increases in financial assistance, fiscal performance requirements and enhanced Shared Municipal Services Incentives (SMSI) Program.

This bill takes effect April 1, 2006.

Part C – Authorize comprehensive mandate relief initiatives for localities and authorize the indexing of interest on court judgments to market rates.

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 D – Establish a new State aid program for municipalities in which a video lottery facility is created.

This bill takes effect April 1, 2006.

Part E – Establish a State Task Force on Pension Reform.

This bill takes effect immediately.

Part F – Authorize use of certain interest earnings to offset costs of health insurance for public employees and retirees.

This bill takes effect April 1, 2006; however, certain provisions take effect April 1, 2005.

Part G – Authorize a targeted retirement incentive focused on positions that can be eliminated through organizational restructuring, streamlining, and shared services efficiencies.

This bill takes effect immediately.

Part H – Authorize cash transfers, temporary loans, and certain bond caps; and provisions relating to general fiscal and debt management issues.

This bill takes effect on April 1, 2006.

Part I – Establish an information technology project job title, including a defined contribution retirement benefit, effective for five years.

This bill takes effect immediately.

Part J – Extend and amend the 1995 Procurement Stewardship Act.

This bill takes effect April 1, 2006.

Part K – Amend State Liquor Authority fine amounts and authorize confiscation of fraudulent ID’s.

Section one of this bill takes effect on the first day of the month at least one hundred twenty days after it shall have become law; however sections two, three and four of this bill take effect immediately.

Part L – Make permanent the Motor Fuel Marketing Practices Act (MFMPA) and provide for certain investigative costs.

This bill takes effect immediately.

Part M – Expand the use of funds deposited into the Criminal Justice Improvement Account.

This bill takes effect on April 1, 2006.

Part N – Authorize use of law enforcement cameras at work zones and dangerous stretches of highway.

This bill takes effect immediately.

Part O – Exempt correctional facilities from the closure notification process if they are recommended to be closed and re-used for another purpose.

This bill takes effect immediately.

Part P – Increase the Criminal History Search fee to support local government agencies and not-for-profit providers of legal services.

This bill takes effect sixty days after enactment.

Part Q – Extend for five years the authorization to fund part of the State’s public safety efforts with Motor Vehicle Law enforcement fees.

This bill takes effect April 1, 2006.

Part R – Authorize counties to impose various fees on probationers.

This bill takes effect immediately.

Part S – Eliminate the authorization for local conditional release.

This bill takes effect immediately.

Part T – Clarify the administration of the State and local wireless surcharges and dedicate all State surcharge revenues to public safety and security activities.

This bill takes effect on the first day of the sales tax quarter to begin at least one hundred twenty days after it becomes law.

Part U – Extend the applicability of a Patriot Plan provision for temporary suspension of public retirement system loan repayments for members on active military duty.

This bill takes effect immediately.

Part V – Establish a new annual registration fee for the Public Employment Relations Board (PERB) to be paid by public employers and employee organizations.

This bill takes effect April 1, 2006

Part W – Authorize the use of sworn affidavits instead of live testimony for the admission of business records into evidence in grand jury proceedings.

This bill takes effect on November 1 next succeeding the date on which it shall become a law.

Part X – Authorize OGS to centrally purchase electricity and other commodities and services for use by State agencies, authorities and localities.

The bill takes effect immediately.

Part Y – Permit a new standard using “aggregate weight” for lab analysis of illegal drug evidence.

The bill takes effect on April 1, 2006.

Part Z – Contain taxes paid on State lands and prevent inequitable assessments on State-owned lands.

This bill takes effect immediately. Sections two, three, four, and five shall be deemed to have been in full force and effect on and after July 6, 2005.

Part AA – Amend the schedule of PILOT payments to the City of Albany for the Empire State Plaza.

This bill takes effect immediately.