2008-09 NEW YORK STATE EXECUTIVE BUDGET
TRANSPORTATION
ECONOMIC DEVELOPMENT AND ENVIRONMENTAL CONSERVATION
ARTICLE VII LEGISLATION
MEMORANDUM IN SUPPORT

CONTENTS

MEMORANDUM IN SUPPORT

A BUDGET BILL submitted by the Governor in

Accordance with Article VII of the Constitution

AN ACT to authorize funding for the Consolidated Local Street and Highway Improvement Program (CHIPS) and Marchiselli program for state fiscal year 2008-09 (Part A); to amend the state finance law, in relation to expanding the purposes for which the environmental protection fund can be used; and in relation to general fund transfers to the environmental protection fund (Part B); to amend the transportation law, in relation to state funding of replacement buses meeting federal standards for replacement for systems other than the metropolitan transportation authority (Part C); to amend chapter 279 of the laws of 1998, amending the transportation law relating to enabling the commissioner of transportation to establish a single audit pilot program, in relation to making the provisions of the single state audit program permanent (Part D); to amend the state finance law, in relation to reporting requirements for the dedicated highway and bridge trust fund; and to amend part Z of chapter 62 of the laws of 2006, amending the state finance law, relating to the use of the dedicated highway and bridge trust fund, in relation to certain financial reporting requirements (Part E); to amend the vehicle and traffic law and the transportation law, in relation to the disqualifications of commercial driver's license holders (Part F); to amend the vehicle and traffic law, in relation to fees for driver licenses and non-driver identification cards (Part G); to amend the vehicle and traffic law, in relation to directing the city of Buffalo to adjudicate traffic infractions (Part H); to amend the state finance law, in relation to the return of plan sale fee (Part I); to amend the transportation law, in relation to the establishment of the local bridge preservation program (Part J); to amend the highway law, in relation to consolidated local highway aid (Part K); to amend the public authorities law, in relation to allowing the metropolitan transportation authority to establish a new fund to receive any proceeds from an approved congestion mitigation implementation plan (Part L); to amend the agriculture and markets law, in relation to maximum penalties (Part M); to amend the agriculture and markets law, in relation to establishing risk based food safety inspections (Part N); to amend the public authorities law, in relation to the assessment and reimbursement of state expenditures (Part O); to amend the public authorities law, in relation to the assessment and reimbursement of state expenditures (Part P); to amend chapter 21 of the laws of 2003, amending the executive law, relating to permitting the secretary of state to provide special handling for all documents filed or issued by the division of corporations and to permit additional levels of such expedited service, in relation to the effectiveness of such chapter (Part Q); to amend the executive law, in relation to the community services block grant program, to amend chapter 728 of the laws of 1982 and chapter 710 of the laws of 1983, amending the executive law relating to community services block grant programs, in relation to the effectiveness thereof; and to repeal subdivision 1 of section 159-e of the executive law relating thereto (Part R); to authorize annual utility and cable television assessments to provide funds to the department of health from the cable television assessment revenues and to the department of agriculture and markets, the department of economic development, the office of parks, recreation and historic preservation, the consumer protection board, the department of environmental conservation, and the office of homeland security (Part S); to authorize and direct the New York state energy research and development authority to make a payment to the general fund of up to $913,000 (Part T); to authorize the New York state energy research and development authority to finance a portion of its research, development and demonstration and policy and planning programs from assessments on gas and electric corporations (Part U); to amend the urban development corporation act, in relation to establishing the investment opportunity fund (Part V); to amend chapter 393 of the laws of 1994, amending the New York state urban development corporation act relating to the powers of the New York state urban development corporation to make loans, in relation to the effectiveness thereof (Part W); to amend the insurance law, in relation to increasing fines and penalties; authorizing the superintendent of insurance to issue cease and desist orders; and increasing the length of time that an insurance producer, consultant, or adjuster must wait to obtain a license after revocation (Part X); to amend the economic development law, chapter 316 of the laws of 1997 amending the public authorities law and other laws relating to the provision of low cost power to foster statewide economic development, the tax law and chapter 645 of the laws of 2006 amending the economic development law and other laws relating to reauthorizing the New York power authority to make contributions to the general fund, in relation to extending the expiration of the power for jobs program and the energy cost savings benefits program; and to amend the public authorities law, in relation to authorizing an additional voluntary contribution into the state treasury under the power for jobs program (Part Y); to amend the public authorities law, in relation to establishing a housing opportunity fund; and to amend chapter 555 of the laws of 1989 amending the public authorities law and other laws relating to establishing a new New York state infrastructure trust fund, in relation to the effectiveness thereof (Part Z); to amend the state finance law, in relation to dedicating the local share of revenue generated by the gaming facility in the city of Buffalo (Part AA); to amend chapter 35 of the laws of 1979 relating to appropriating funds to the New York state urban development corporation, in relation to additional powers of the development corporation (Part BB); to amend the New York state urban development corporation act, in relation to establishing the upstate regional blueprint fund, the downstate revitalization fund and the upstate agricultural economic development fund; to establish the New York state arts and cultural capital grants program and the economic and community development program; and providing appropriations for such programs (Part CC); to provide for the transfer of moneys from the power authority of the state of New York (Part DD); to amend the environmental conservation law, in relation to operating permit program fees (Part EE); to amend chapter 67 of the laws of 1992, amending the environmental conservation law relating to pesticide product registration timetables and fees, in relation to such timeframes and fees; and to amend the environmental conservation law, in relation to pesticide product fees for registration (Part FF); and to amend the environmental conservation law, the economic development law and the state finance law, in relation to including additional beverage containers and to provide for the return of unclaimed deposits on beverage containers to the state for deposit into the environmental protection fund; and to repeal sections 27-1005, 27-1007 and subdivision 2 of section 27-1011 of the environmental conservation law relating thereto (Part GG)

PURPOSE:

This bill contains provisions needed to implement the Transportation, Economic Development and Environmental Conservation portions of the 2008-09 Executive Budget.

This memorandum describes Parts A through GG of the bill which are described wholly within the parts listed below.

Part A – Provide the annual authorization for the CHIPS and Marchiselli programs.

Purpose:

This bill authorizes funding for the Consolidated Local Street and Highway Improvement Program (CHIPS) and Marchiselli program for State fiscal year 2008-09.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This bill authorizes the CHIPS and Marchiselli capital aid programs to counties, cities, towns and villages for State fiscal year 2008-09 at $303.1 million and $39.7 million respectively.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget.

Effective Date:

This bill takes effect on April 1, 2008.

Part B – Increase the Environmental Protection Fund (EPF) General Fund guarantee and expand the purposes for which the EPF may be used.

Purpose:

This bill increases the aggregate amount of allowable General Fund transfers into the Environmental Protection Fund (EPF) to an amount not to exceed $422,171,000 and expands the purposes for which the EPF may be used.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This bill amends section State Finance Law § 92-s to increase the aggregate amount of allowable transfers from the General Fund to the EPF to $422,171,000, and ensures that all transfers from the EPF to the General Fund are fully reimbursable if funds in the EPF are deemed insufficient to meet actual and anticipated disbursements in a given fiscal year.

Additionally, this bill amends State Finance Law § 92-s to permanently authorize the EPF to be used for several new purposes including: assessment and recovery of natural resource damages to the Hudson River; the Pollution Prevention Institute; State parks and lands infrastructure access and stewardship projects; zoos, botanical gardens and aquaria; implementation of the Hudson River Estuary Management Program; the Oceans and Great Lakes initiative; implementation of recommendations of the Invasive Species Task Force; water quality improvement projects; and Smart Growth projects.

This bill also establishes three new EPF accounts – the farmland protection account, environmental justice account, and renewable energy account – that would authorize funding to be used for farmland protection activities; agricultural non-point source abatement; soil and water conservation district activities; agricultural waste management projects; air quality projects; and solar energy initiatives.

Permanent authorization for these program categories will enable the EPF to be a more effective tool for the benefit of New Yorkers and the environment.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget which includes EPF appropriations for the expansion of important environmental initiatives and to guarantee reimbursement of the proposed transfer from the EPF to the General Fund of $100 million.

Effective Date:

This bill takes effect on April 1, 2008.

Part C – Require transit systems, other than the Metropolitan Transportation Authority (MTA), participating in the State's Omnibus and non-MTA capital programs to purchase replacement buses through the use of consortiums, or demonstrate they can achieve similar savings without the use of a consortium, in order to receive the maximum State grant.

Purpose:

This bill would require transit systems receiving State assistance pursuant to Transportation Law § 18-b, other than the Metropolitan Transportation Authority (MTA), to utilize consortiums of two or more public transportation systems in order to receive the maximum State grant under the Omnibus and non-MTA capital programs.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This bill amends Transportation Law § 304 by adding a new subdivision requiring contracts for the replacement of buses by transit systems receiving State assistance pursuant to Transportation Law § 18-b (excluding MTA) to include the following provisions:

• The State shall pay no more than 25% of the non-federal share of a project, but not to exceed 5% of the total project cost, if replacement buses are either not acquired through a consortium of two or more public transportation systems, or if a sponsor cannot demonstrate a per bus cost equal to or less than the per bus cost available through a consortium. The Commissioner of the Department of Transportation (“Commissioner”) may waive these conditions as appropriate.
• Any bus replacement projects funded from the Dedicated Mass Transportation Trust Fund shall be procured through a consortium of two or more public transportation systems, or the sponsor must demonstrate a per bus cost equal to or less than the per bus cost available through a consortium. The Commissioner may also waive these conditions as appropriate.

Transportation Law § 300 allows the Commissioner to establish the State share of a municipal project, undertaken with Federal assistance from the Federal Urban Mass Transportation Administration or the Federal Highway Administration, as long as it does not exceed 15% of the total project cost (while, pursuant to restrictions in annual appropriation language, the Commissioner may not fund in excess of 10% of the cost of purchasing buses). Notably, however, existing law does not expressly contemplate linking such funding to the use of purchasing consortiums that can bring the economies of scale to smaller transit systems.

With this legislation, beginning with SFY 2008-09, the level of the State’s Omnibus capital program funding will be determined by whether or not a system procures replacement buses through a consortium. Systems that procure federally funded replacement buses through consortiums will continue to receive a maximum 10% of the cost of the purchase from the State’s Omnibus program. Systems that do not use consortiums and cannot demonstrate that the price paid was equal to or less than the consortium price will receive a maximum 5% of the cost of the purchase from the State’s Omnibus program, unless otherwise approved by the Commissioner.

Also beginning with SFY 2008-09, the State’s non-MTA capital program funding will be determined by whether or not a system procures approved bus replacements through a consortium. Systems that procure buses through a consortium will continue to receive funding through this program. Systems that do not use consortiums and cannot demonstrate that the price paid was equal to or less than the consortium price, will not be eligible for funding from the program, unless otherwise approved by the Commissioner.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget because it further enhances the guidelines governing the State's allocation of the Omnibus and non-MTA capital programs. Each of these capital programs helps to offset the local government and/or transit authority expense to replace transit buses. This bill will provide incentives for transit providers throughout the State to pursue the lowest cost available for replacement buses through the use of consortiums.

Effective Date:

This bill takes effect on April 1, 2008.

Part D – Extend the Department of Transportation's Single Audit Program.

Purpose:

This bill makes permanent Transportation Law § 21, which unifies and simplifies the audit process for State transportation assistance to municipalities and public authorities by aligning that process with the Federal single audit.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

Section 2 of Chapter 279 of the Laws of 1998, as amended by section 2 of Chapter 100 of the Laws of 1999 and section 1 of part B of Chapter 59 of the Laws of 2007, would be amended by eliminating the December 31, 2008 expiration date.

Transportation Law § 21 applies to municipalities and public authorities with annual State transportation assistance spending in excess of $100,000 for programs administered by the New York State Department of Transportation (DOT). In cases where such entity is already required to perform a Federal single audit under the Federal Single Audit Act of 1984, the current law allows an independent certified public accountant to conduct an audit of State funds received by a municipality at the same time and in the same format as they conduct the Federal audit, thereby satisfying State audit requirements and eliminating the need for examination by State auditors.

DOT benefits from having audit information collected in a uniform, simplified, reliable manner. Since the inception of Section 21, there has been a decrease in workload for DOT auditors, allowing more time for audits of State-only programs and smaller programs. The municipalities and authorities that receive State transportation assistance benefit by performing both Federal and State audits in a unified and simplified manner.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget because absent these changes, the Department would incur approximately $300,000 in additional annual auditing costs for these programs.

Effective Date:

This bill takes effect April 1, 2008.

Part E – Modify the Dedicated Highway and Bridge Trust Fund reporting requirements.

Purpose:

This bill modifies State Finance Law by altering and improving several reporting requirements in the Capital Program and Financing Plan (CPFP) and in appropriation itemization requirements regarding the Dedicated Highway and Bridge Trust Fund (DHBTF). These improvements to the reporting requirements will increase the understanding of the DHBTF’s operation.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This bill would:

• Require reporting of the pertinent information for the current fiscal year;
• Require that reporting include transfers from the DHBTF;
• Clarify that the reporting include planned disbursements for personal service and non-personal service costs for future fiscal years;
• Require that the detailed description of each individual capital project to be included in the CPFP be deemed satisfied by submission to the Governor, the Majority Leader of the Senate, the Speaker of the Assembly and the State Comptroller, of all reports on programs and projects required under the most recent memorandum of understanding for the State Transportation Plan, and eliminate a probable useful life reference;
• Require that disclosure of a bond coverage ratio calculation applies, on an annual basis, to all fiscal years covered by the reporting;
• Clarify that a comprehensive financial plan reporting on revenues and disbursements in the DHBTF is separate from providing a detailed description of appropriations, reappropriations and their associated disbursements;
• Require that appropriation itemization for capital projects, personal service and
  non-personal service costs applies only to appropriations and not reappropriations, and removes the requirement to itemize appropriations and reappropriations for pay-as-you-go funds;
• Lengthen, to 20 days after the end of a calendar quarter, the time in which the State Comptroller shall report on the detailed amounts of receipts and disbursements from the DHBTF for the prior quarter;
• Eliminate the citation of State Finance Law § 89-b in each appropriation or reappropriation; and
• Eliminate the requirement for the Division of the Budget to report the amount of the previous quarter's disbursements that will be funded with bond proceeds, taxes, fees, transfers or other sources.

Chapters 61 and 62 of the Laws of 2006 instituted additional reporting, appropriation and reappropriation requirements in the Capital Program and Financing Plan and in budget bills submitted with the Executive Budget. These requirements included: (1) reporting only on three-quarters of the current fiscal year; (2) omission of reporting on transfers from the DHBTF; (3) combined reporting of appropriations, reappropriations and disbursements for debt service, capital, State operating, contractual engineering and State forces engineering in a way that was unclear, or inconsistent with the financial structure and budgeting procedures of the DHBTF; (4) a requirement that appropriations and reappropriations from the DHBTF be itemized for pay-as-you-go financing, personal service and non-personal service expenses; (5) a requirement that the CPFP contain detailed reports on each individual DOT capital project; (6) a requirement that each DHBTF appropriation cite State Finance Law § 89-b; and (7) a requirement that the Director of the Budget report quarterly on the amount of the prior quarter's disbursements that would be financed with bond proceeds, taxes, fees, transfers or other sources.

This bill clarifies the existing law while attempting to preserve its original intent by separating reporting on individual appropriations and reappropriations and their associated disbursements from a more comprehensive and complete financial plan for the DHBTF. This bill eliminates onerous or duplicative reporting on capital projects that can be satisfied through broader distribution of existing required reports and amends existing law where it requires reporting or appropriation itemization on items that cannot be produced due to the financial structure and budgeting procedures of the DHBTF.

A similar bill was introduced, but was not passed, in 2007 (S.2109A/A.4903A, Part AA). Rather, legislation enacted in 2007 changed the effective date of these provisions from April 1, 2007 to April 1, 2008 (Chapter 59 of the Laws of 2007, Section 1, Part M). This bill includes that effective date change and makes additional corrections.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget to clarify CPFP reporting requirements and appropriation content.

Effective Date:

This bill takes effect upon the later of its enactment or April 1, 2008.

Part F – Amend the Vehicle and Traffic Law and the Transportation Law, in relation to the disqualifications of commercial driver's license holders.

Purpose:

This bill conforms the State Vehicle and Traffic Law (VTL) and Transportation Law to Federal requirements governing operators of commercial motor vehicles.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

Current State law would be amended to bring New York State into compliance with Federal requirements, as follows:

1. Hazardous materials endorsements: Current State law does not require that all persons who apply for a hazardous materials endorsement receive a Federal criminal history check, although it is mandated by current Department of Motor Vehicles (DMV) procedure. This bill would make the mandatory Federal criminal history check a State statutory requirement.
2. License revocation: Current State law does not establish a minimum license revocation period for leaving the scene of an accident involving personal injury or property damage. This bill would establish a minimum revocation period of one year; such period would be increased to three years if hazardous materials are transported in the vehicle involved.
3. Multiple serious traffic violations: The VTL provides that Commercial Driver License (CDL) sanctions are triggered by multiple serious traffic convictions within a three year period. In order to conform to Federal requirements, State law must reference multiple serious violations committed within a three year period.
4. License suspension: Under current State law, if a CDL holder violates an
   out-of-service order, he or she is subject to a 90-day license suspension for a first offense and a one-year suspension for a second offense. Conforming with Federal law would increase the sanction to 180 days for the first offense and to two years for the second offense.
5. Non-CDL holder offenses: Under existing law, DMV suspends or revokes the privilege of a non-CDL holder to operate a commercial vehicle or obtain a CDL license when he or she commits a disqualifying offense set forth in VTL § 510-a. This bill would authorize DMV to take such action if a suspension or revocation is required by any provision of the VTL that requires disqualification of CLD holders, in particular alcohol-related offenses set forth in VTL Article 31.
6. CDL-related violations and penalties: This bill amends the VTL to match the fines required by Federal law for violating an out-of-service order or requiring another to do so, and holds employers accountable for permitting their employees to commit railroad crossing violations, as required and defined by the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU).

Provisions similar to sections 1, 5, and 6 of this bill were proposed last session, as S.2109-A/A.4309-A, but were not passed by the Legislature.

Although Chapter 60 of the Laws of 2005, Chapter 59 of the Laws of 2006 and Chapter 251 of the Laws of 2007 brought New York State largely into compliance with Federal requirements, additional deficiencies were identified in a 2006 Federal audit. The amendments to law included in this bill will bring DMV penalties into conformance with Federal regulations.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget because the Federal Motor Carrier Safety Administration (FMCSA) conducted an audit in April of 2006 to assess the Department of Motor Vehicles’ compliance with Federal law. This bill addresses the deficiencies noted in the audit and is necessary to avoid the loss of up to $31 million in Federal highway funding and the potential for decertification.

Effective Date:

The bill would take effect immediately, provided however that bill sections 4 and 6 would take effect 60 days after the bill becomes law.

Part G – Amend the Vehicle and Traffic Law in relation to fees for driver licenses and non-driver identification cards.

Purpose:

This bill amends the Vehicle and Traffic Law (VTL) to facilitate New York’s issuance of an enhanced driver license and enhanced non-driver photo identification card acceptable for the purposes of the Western Hemisphere Travel Initiative (WHTI), a Federal border-crossing initiative developed pursuant to the Intelligence Reform and Terrorism Prevention Act of 2004.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This bill would add a new VTL § 491(2)(e) and a new VTL § 503(2)(f-1) to provide for an additional charge of $20 for the issuance of a WHTI-enhanced non-driver identification card and driver license, respectively, that may be issued to New York State residents who are United States citizens.

This bill also amends VTL § 205(3) to provide that 30 percent of the $20 WHTI endorsement fee shall be retained by counties to offset the costs of issuing the enhanced documents.

This is a new bill that would provide the Department of Motor Vehicles (DMV) with the resources necessary to develop WHTI-compliant documents.

WHTI was developed by the U. S. Department of Homeland Security (DHS) and the U. S. Department of State under the Intelligence Reform and Terrorism Prevention Act of 2004. Under WHTI, all travelers must present a secure document, such as a passport or other document, which denotes citizenship and identity when entering or departing the United States from within the Western Hemisphere. Enhanced driver licenses or enhanced non-driver photo identification cards are documents that can be designated by DHS as WHTI-compliant documents for land and sea travel border crossings. These enhanced documents will contain a vicinity Radio Frequency Identification (RFID) chip and a Machine Readable Zone (MRZ) that can be scanned to facilitate border and port processing; they also must include physical security features that will guard against tampering. The RFID technology allows a device to read information contained in a wireless device or “tag” from a distance without making any physical contact or requiring a line of sight between the two.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget because it will allow DMV to offset the costs of issuing WHTI-compliant driver licenses and
non-driver identification cards by charging a $20 endorsement fee.

Effective Date:

This bill takes effect immediately.

Part H – Transfer the adjudication of all traffic infractions in the City of Buffalo from the New York State Department of Motor Vehicles Traffic Violations Bureau to the City of Buffalo.

Purpose:

This bill would transfer jurisdiction over adjudication of traffic infractions occurring within the City of Buffalo from the New York State Department of Motor Vehicles (DMV) to the City of Buffalo.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

Vehicle & Traffic Law (VTL) Article 2-A provides that DMV shall adjudicate traffic infractions that occur within any city having a population of 200,000 or more. This bill adds a new VTL § 229 to exempt the City of Buffalo from VTL Article 2-A, so that Buffalo may adjudicate its own traffic violations.

This is a new bill that is supported by both the City of Buffalo and DMV. It will return to the City of Buffalo the power to adjudicate its own traffic tickets, as well as the full value of the associated fines and fees. Traffic defendants in the Buffalo City Court would be afforded all of the rights afforded defendants in other municipal courts, such as the right to plea bargain.

Budget Implications:

Enactment of this bill will allow necessary lead time for the City of Buffalo to transition the activities of the Department of Motor Vehicles Traffic Violations Bureau (TVB) to the Buffalo City Court for State Fiscal year 2009-10. The lease for space housing the TVB expires in June 2009, thereby providing an opportunity to transition adjudication to Buffalo without cost to the State. This transition will reduce DMV’s 2009-10 budget by the $600,000 cost of the leased space, with a commensurate reduction in fine revenues retained by DMV which will then be passed on to the City of Buffalo. This would create a net gain of $600,000 to the City of Buffalo because the City has space available to house the administrative operations of traffic violations adjudication.

Effective Date:

This bill takes effect June 1, 2009.

Part I – Eliminate the return of the deposit for plans and specifications associated with Department of Transportation capital project bids.

Purpose:

This bill would eliminate the return of the deposit for plans and specifications to successful bidders on Department of Transportation capital project bids.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

State Finance Law § 143 authorizes State agencies to charge bidders on public work projects a deposit of up to $100 for copies of project plans and specifications. However, it requires that such a deposit be refunded to successful bidders. Section 143 also requires the refund of deposits greater than $50 paid by unsuccessful bidders who return their plans in good condition, less printing costs for any additional copies originally requested by the unsuccessful bidder.

This bill would eliminate the return of the deposit to successful bidders on Department of Transportation (DOT) projects. DOT currently estimates that, in total, the administrative costs associated with returning these deposits exceed the deposits actually returned. Furthermore, project plans and specifications are not typically returned by successful bidders, as they are utilized for performance of the contract. Elimination of the return of this deposit only for successful bidders is estimated to generate additional revenue of approximately $40,000 per year and result in administrative cost savings in the 2008-09 Executive Budget.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget.

Effective Date:

This bill takes effect on April 1, 2008.

Part J – Establish the Local Bridge Preservation Program.

Purpose:

This bill establishes a local bridge preservation program to be administered by the Department of Transportation. The local bridge program is a major component of the Governor’s State and Local Bridge Preservation Program.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

Section 1 adds a new Transportation Law § 14-n to:

1. Establish the Local Bridge Preservation Program to provide assistance for restoring and preserving local bridges that are in generally good to fair condition. The program is intended to complement other government-funded bridge construction and maintenance activities by financing corrective maintenance and repairs to major or critical structural elements that will improve or maintain local bridge conditions and functionality.
2. Provide that the program shall be funded through annual capital projects appropriations.
3. Authorize the Commissioner of Transportation (the “Commissioner”) to approve funding for individual projects according to an application process for counties, towns, cities, villages and any Indian nation. The Commissioner is also authorized to establish criteria for the review and approval of such applications, including, but not limited to: bridge condition, functionality, economic significance, safety, project cost-effectiveness and sharing of services in the delivery of projects undertaken by two or more municipalities.
4. Require that projects undertaken pursuant to this program will only be undertaken pursuant to contracts with the Commissioner.
5. Require that municipalities pay twenty percent of the cost of a local bridge preservation project, allow the project to be advanced in phases, allow unreimbursed municipal costs to be credited to the 20 percent municipal share, and allow the use of Consolidated Highway Improvement Program aid for the unreimbursed municipal share.
6. Establish the method of calculating grant limits, including the offset of federal moneys against grants, and prohibit funds from being used for debt service costs.
7. Require that projects have at least a five-year useful life, that funds may not be used to match federal aid, that funding may not exceed unreimbursed municipal project expenditures and that municipalities not use these funds to reduce municipal transportation funding.
8. Allow for joint municipal action in the implementation of projects.

The establishment of this program is necessary to provide guidelines and criteria for the distribution of funds for the local component of the newly-created State and Local Bridge Preservation Program. These targeted investments will support the restoration and preservation of locally-owned bridge structures through a competitive grant process upon application to, and approval by, the Commissioner. Eligible projects must have a minimum service life of five years, require local matching funds and meet other criteria including condition, structural and maintenance goals.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget because the Local Bridge Preservation Program is a constituent part of the larger State and Local Bridge Preservation Program contained in the Executive Budget.

Effective Date:

This bill would become effective immediately.

Part K – Amend Highway Law §10-c to remove a disincentive to certain transfers of maintenance jurisdiction between municipalities.

Purpose:

This bill enables certain municipalities maintaining the roads and bridges of another municipality to receive the same level of payments under the Consolidated Local Highway Improvement Program (CHIPS).

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

Highway Law § 10-c defines program and aid distribution criteria for CHIPS. Based on considerations of municipal density and the correlation to highway and bridge maintenance costs, some municipality types receive a higher aid rate than others. For example, villages receive a higher aid rate than towns.

This bill preserves the original aid rate for a bridge or highway facility when jurisdiction is transferred to a municipality type with a lower aid rate. Upon mutual acceptance of both municipalities, it may be more efficient for a village to assign its road and bridge maintenance to a town. This amendment eliminates a disincentive for counties and towns to accept responsibility for maintaining the roads and bridges of cities and villages.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget to ensure that the incentives offered by CHIPS promote efficient sharing of governmental services.

Effective Date:

This bill shall take effect on April 1, 2008.

Part L – Create the Traffic Congestion Mitigation Fund to receive moneys collected by the Metropolitan Transportation Authority from New York City's congestion mitigation plan.

Purpose:

This bill creates a new Metropolitan Transportation Authority (MTA) fund within the Public Authorities Law (PAL) to receive revenues generated by New York City's congestion mitigation plan that are received by the MTA.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This proposal would create a new PAL § 1270-g to:

• Direct the MTA to create and establish a fund to be known as the “traffic congestion mitigation fund,” which shall consist of the Metropolitan Transportation Authority account; and
• Direct the MTA to deposit into the Metropolitan Transportation Authority account all moneys received by it pursuant to a chapter of the laws of 2008 that shall relate to traffic congestion mitigation, as contemplated by Section 6 of Chapter 384 of the Laws of 2007.

Existing sections of the PAL create special MTA accounts to receive mortgage recording taxes and State dedicated funds. This bill would simply add a new account to receive revenues generated by any congestion mitigation plan.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget because it establishes an MTA fund to receive revenues received by MTA generated by any enacted congestion pricing plan. Creation of this fund will aid the implementation of the New York City traffic congestion mitigation commission's recommendations, as enacted in 2008.

Effective Date:

This bill takes effect on April 1, 2008.

Part M – Increase penalties for violations of the Agriculture and Markets Law and related legal requirements.

Purpose:

This bill increases the maximum penalties for violations of the Agriculture and Markets Law (AML), Department of Agriculture and Markets (Department) orders and regulations, and other laws within the enforcement jurisdiction of the Department. The increases will more effectively encourage compliance with these statutes, orders and regulations.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This bill amends AML § 39 to increase the maximum penalty from $300 to $1,000 for a first violation of the AML and other laws within the enforcement jurisdiction of the Department, and from $600 to $2,000 for each subsequent violation. In addition, the bill amends AML § 40 to increase the maximum penalty from $200 to $1,000 for a first violation of a rule or order of the Department, and from $400 to $2,000 for each subsequent violation.

The bill implements the first increase in penalties for violation of sections 39 and 40 since 1990 and 1968, respectively. The change is consistent with more assertive enforcement actions as stipulated by the Division of Food Safety and Inspection’s “Legal Action Protocol.”

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget, because $1.2 million in additional anticipated penalty revenues is included in the Executive Budget Financial Plan.

Effective Date:

This bill takes effect immediately.

Part N – Amend the Agriculture and Markets Law in relation to establishing risk based food safety inspections.

Purpose:

This bill amends the Agriculture and Markets Law to achieve efficiencies in the inspection of retail food stores by establishing risk based food safety inspections.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This bill amends Agriculture and Markets Law (AML) § 500(4) to allow the Department of Agriculture and Markets (Department) to inspect retail food stores on a risk-based approach. Currently, the Department is responsible for inspecting each retail food store once every calendar year. The retail food stores that fail the first inspection are re-inspected by the Department within a six month period.

This bill allows the Department to inspect retail food stores based on risk factors, such as establishment size, type of food offered for sale, and other factors that may affect public health as established by the Commissioner of Agriculture and Markets. Retail food stores that have a good inspection record or little risk of food safety incidents (for example, where pre-packaged food only is sold) would no longer be inspected on an annual basis. In contrast, retail food stores that fail inspection would be inspected more frequently. Stores would continue to be inspected when there are complaints and on a random basis.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget because it will save the Department $1.2 million in program costs.

Effective Date:

This bill takes effect immediately.

Part O – Increase the maximum amount that can be assessed to public authorities for centralized State services provided on their behalf.

Purpose:

This bill would increase the maximum amount collected in State cost recovery fees from $40 million to $50 million.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

These fees are collected from the State's public authorities to reimburse the State for central government services provided on their behalf. This bill would increase the aggregate amount that can be assessed to public authorities from $40 million to $50 million.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget because the additional $10 million increase in the cost recovery fee is included in the 2008-09 financial plan.

Effective Date:

This bill will take effect immediately.

Part P – Recover State governmental costs from industrial development agencies.

Purpose:

This bill would authorize the State to recover costs incurred by the State for services provided to Industrial Development Agencies (“IDAs”).

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

Since 1989, the Statewide Cost Recovery System (PAL §2975) has required that State public authorities reimburse the State for a share of the State’s costs of centralized government services incurred on behalf of the authorities. IDAs also receive such services from the State, but have not been similarly required to reimburse the State for such State services. This bill establishes a more equitable distribution for recovery of centralized State agency expenditures by authorizing the State to recover such costs from IDAs across the State. However, in order to limit the fiscal impact on IDAs, the bill includes an aggregate cap of $5 million on the total annual assessments statewide.

Budget Implications:

The 2008-09 State financial plan includes $5 million in additional revenues as a result of creating the cost recovery fee. Therefore, enactment of this bill is necessary to implement the 2008-09 Executive Budget.

Effective Date:

This bill would take effect immediately.

Part Q – Make permanent the authority of the Secretary of State to charge increased fees for expedited handling of documents.

Purpose:

This bill makes permanent provisions of law permitting the Secretary of State to charge increased fees for the expedited handling of documents issued by or requested from the Division of Corporations within the Department of State. The increased fees for expedited handling are necessary to reimburse the Department for increased administrative costs associated with expedited handling.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

The provisions of Executive Law § 96(11) that authorize the Secretary of State to charge increased fees for expedited handling of requests made to the Division of Corporations expire on March 31, 2008. Historically, this authority has been extended in one-year increments to sunset at the end of the State fiscal year. The business community has come to rely on the availability of these expedited document handling services, and continued annual sunsets of this authority would create unnecessary uncertainty and inefficiencies.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget. The 2008-09 Executive Budget assumes that expedited handling fees will be enacted since the costs associated with expedited handling are greater than traditional requests. Failure to enact this legislation will result in the Department bearing additional expenditures with no additional revenue available to support these costs.

Effective Date:

This bill takes effect April 1, 2008.

Part R – Conform the State’s Community Services Block Grant Program to the Federal Community Services Block Grant Program and make the funds distribution formula permanent.

Purpose:

This bill would conform the state’s Community Services Block Grant Program to the federal Community Services Block Grant Program and make permanent the distribution formula for funds received under this federal program.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

The federal law authorizing the Community Services Block Grant Program (42 USC § 9901 et seq.) was comprehensively amended in 1998. However, the state statute implementing this federal program has not been updated to reflect the 1998 changes to the underlying federal law.

This bill amends Executive Law §§ 159-e et seq. to conform to current federal law governing administration of the Community Services Block Grant Program. Specifically, the bill updates the definition of eligible entities and the formula for state distribution of federal funding allocations, and adds provisions to govern funding reductions, eligible entity decertification and the designation of new entities to serve unserved areas.

In addition, this bill amends Executive Law § 159-i to make the formula for state distribution of federal funding allocations permanent. Historically, the distribution formula has been extended annually to authorize distribution of federal funding allocations, and the current authority is scheduled to sunset on September 30, 2008.

Budget Implications:

The Department of State has administered the Community Services Block Grant Program since 1982. The Department's authority to distribute CSBG funds is predicated upon the receipt of funding from the Federal government and its compliance with federal program requirements. The Department anticipates continued Federal funding for the CSBG Program and the State financial plan assumes these funds will be disbursed during the 2008-09 State fiscal year. Therefore, enactment of this bill is necessary to implement the 2008-09 Executive Budget.

Effective Date:

This bill takes effect immediately.

Part S – Authorize annual utility and cable television assessments to provide funds to the Department of Health from cable television assessment revenues and to the departments of Agriculture & Markets, Economic Development and Environmental Conservation, the Office of Parks, Recreation and Historic Preservation, the Consumer Protection Board and Homeland Security from utility assessment revenues.

Purpose:

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

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

Section 1 authorizes certain expenditures of the Department of Health as eligible expenses for cable television assessment revenues.

Sections 2 through 7 authorize certain expenditures of the Departments of Agriculture and Markets, Economic Development and Environmental Conservation, the Office of Parks, Recreation and Historic Preservation, the Consumer Protection Board, and the Office of Homeland Security as eligible expenses for utility assessment revenues.

Section 18-a of the Public Service Law (PSL) authorizes the Department of Public Service (DPS) to assess public utility companies for Public Service Commission (PSC) and DPS costs associated with the regulation of utilities. PSL § 217 authorizes the DPS to assess cable television companies for PSC and DPS costs associated with the regulation of cable television companies.

This bill ensures that the affected agencies will be able to expend utility assessment funds on critical state programs. Chapter 59 of the Laws of 2007 provided similar authorizations.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget, because the bill ensures the recovery of expenses incurred by the Departments of Health, Agriculture and Markets, Economic Development and Environmental Conservation, the Office of Parks, Recreation and Historic Preservation, the Consumer Protection Board, and the Office of Homeland Security.

Effective Date:

This bill takes effect on April 1, 2008.

Part T – Authorize and direct the State Comptroller to deposit to the General Fund an amount of up to $913,000 from the New York State Energy Research and Development Authority.

Purpose:

This bill authorizes the New York State Comptroller (Comptroller) to accept and deposit to the General Fund an amount of up to $913,000 from the New York State Energy Research and Development Authority (NYSERDA).

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This bill authorizes the Comptroller to accept and deposit to the General Fund an amount of up to $913,000 from NYSERDA. NYSERDA will pay up to such amount from unrestricted corporate funds. The $913,000 transfer will help offset New York State's debt service requirements relating to the Western New York Nuclear Service Center. Without this authorization, NYSERDA could not make this contribution. Chapter 59 of the Laws of 2007 provided a similar one year authorization.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget, because the $913,000 amount is contemplated by the Financial Plan.

Effective Date:

This bill takes effect on April 1, 2008.

Part U – Authorize the New York State Energy Research and Development Authority to finance a portion of its research, development and demonstration, and policy and planning programs from assessments on gas and electric corporations.

Purpose:

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

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

The bill authorizes NYSERDA to finance its research, development and demonstration and policy and planning programs with revenues from assessments on gas corporations and electric corporations. PSL § 18-a authorizes the Department of Public Service to assess gas corporations and electric corporations to fund these programs. This is an annual Article VII provision that was last enacted as Chapter 59 of the Laws of 2007. Without this legislation, NYSERDA could not continue operating essential energy programs in the 2008-09 State fiscal year.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget, because the bill authorizes the collection of assessments to fund NYSERDA’s research, development and demonstration, and energy policy and planning programs. An $18.5 million appropriation is included in NYSERDA's budget for these energy programs.

Effective Date:

This bill takes effect April 1, 2008.

Part V – Establish a $150 million Investment Opportunity Fund.

Purpose:

This bill establishes a new $150 million Investment Opportunity Fund to be administered by the New York State Urban Development Corporation.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This bill allows the State to make important financial contributions to support economic development projects across the State. State funding will be targeted to major projects that will create significant regional economic development benefits or that provide economic benefits to distressed areas.

Project applications will be solicited on a periodic basis through a competitive request for proposal process. Priority will be given to projects that produce long-term employment creation or retention, foster partnerships with local and regional entities, and encourage private sector investment.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget, which assumes that a new Investment Opportunity Fund will be established.

Effective Date:

This bill takes effect April 1, 2008.

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

Purpose:

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

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

Chapter 393 of the Laws of 1994 provides UDC with the general power to make loans. This authorization has been renewed annually and is currently set to expire on July 1, 2008.

Several similar bills repealing the sunset provision have previously been introduced, but not enacted. Provisions to extend the sunset date were enacted in 1997, 1998, 2000, 2002, 2003, 2004, 2005, 2006 and 2007.

Absent enactment of this bill, UDC will only be authorized to make loans in connection with certain State-funded economic development programs that include loan authorization.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-2009 Executive Budget, which assumes that UDC will provide certain economic development assistance through its general power to make loans and grants, rather than only grants. Absent this legislation, the Corporation could not fund loans approved through the Metropolitan Economic Revitalization Fund.

Effective Date:

This bill takes effect April 1, 2008.

Part X – Increase the maximum penalties for Insurance Law violations.

Purpose:

This bill amends certain provisions of the Insurance Law to increase civil penalties; authorize the Superintendent of Insurance to issue cease and desist orders; and increase the length of time that an insurer must wait to obtain a license after revocation.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

Since many maximum fine and penalty amounts in the Insurance Law have not been increased for several decades, they have lost their punitive effect and are regarded as merely a nuisance expense by potential violators. This bill increases various fines and penalties in order to strengthen compliance with existing provisions of the Insurance Law and prevent potential harmful actions to the insurance industry.

Specifically, this bill:

• Increases fines and penalties for various violations of the Insurance Law;
• Authorizes the Superintendent to issue cease and desist orders; and
• Increases the length of time that an individual, corporation, firm or association must wait to obtain a license after revocation.

A similar bill was proposed as part of the State fiscal year 2006-07 Executive Budget.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget since the State Financial Plan assumes $1 million in additional General Fund receipts as a result of the increased fines and penalties included in this bill.

Effective Date:

This bill takes effect on April 1, 2008.

Part Y – Extend the Power for Jobs and Energy Cost Savings Benefit programs for one year and create the Electricity Cost Discount Program.

Purpose:

This bill extends the Power for Jobs (PFJ) and Energy Cost Savings Benefit (ECSB) programs for one year, and creates the “Electricity Cost Discount Program,” a long-term economic development power program.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

The PFJ and ECSB programs, two economic development power programs administered by the New York Power Authority (NYPA), expire on June 30, 2008. This bill extends PFJ and ECSB for one year, qualifying beneficiaries to continue to receive benefits under these programs for another year.

This bill also authorizes a $25 million payment from NYPA to the State General Fund to compensate the State for the loss of gross receipts tax revenues associated with PFJ.

This bill also creates the Electricity Cost Discount (ECD) program, a new 1,000 megawatt long-term economic development power program. ECD, which will be administered by NYPA with the assistance of the Economic Development Power Allocation Board (EDPAB), will be open to both businesses and not-for-profit corporations based on applicable criteria, that include: (1) the significance of the cost of electricity to an applicant's overall operating costs; (2) capital investments that would be made in New York; (3) jobs that would be created or retained in New York; (4) the size of an applicant’s payroll; (5) whether program benefits would prevent the closure or relocation of facilities; (6) the contribution made by the applicant to the local economy; (7) the applicant’s current or committed investment in energy efficiency measures; and (8) whether the applicant provides critical services (applicable only to not-for-profit applicants). The EDPAB will make recommendations to NYPA on discount allocations and other pertinent business terms, including the term of the discounts.

Applicants that are accepted into the new program will be eligible to receive electricity cost discounts for up to seven years (subject to an end date of June 30, 2016). Beneficiaries will receive the electricity cost discount on the electric bill provided by their local electricity distributor.

PFJ and ECSB participants that are in compliance with their contractual obligations but not accepted into the ECD program will nonetheless receive a benefit under the ECD program that will be phased-out over two years.

The bill creates a new long-term power program that provides the certainty needed to allow participants to make long-term investments in New York, and provides for a fair distribution of program resources based on specified criteria. The new program will provide the equivalent of 1,000 megawatts of low cost power, more than the PFJ and ECSB programs combined.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget which assumes that NYPA will provide $25 million to the State General Fund in State fiscal year 2008-09 to fund the extension of the PFJ program. The ECD program has no State fiscal implications because it will be funded by NYPA.

Effective Date:

This bill takes effect immediately, except that: (1) the amendments to EDL § 183 made by Sections 1, 8, 8-a and 9 of the bill are subject to the expiration and reversion of ECL § 183 pursuant to Section 9 of Chapter 316 of the Laws of 1997, as amended, when upon such date the provisions of Section 10 of the bill will take effect; (2) the amendments to EDL § 189, made by Sections 2 and 3 of the bill, and to Tax Law § 186-a(9), made by Section 5 of the bill, do not affect the repeal of such provisions and will be repealed therewith; and (3) the amendments to subparagraph 2 of paragraph (g) of the ninth undesignated paragraph of Public Authorities Law § 1005, made by Section 7 of the bill, do not affect the expiration and reversion of such paragraph and will expire therewith.

Part Z – Create an account within the Mortgage Insurance Fund to support a new Housing Opportunity Fund.

Purpose:

This bill expands the powers of the Mortgage Insurance Fund (MIF) to provide financial support for a new housing investment program for affordable and supportive housing projects in New York State.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This bill amends various sections within Part II of Public Authorities Law Article 8, Title 17, to create a new account within the Mortgage Insurance Fund (MIF) to support the Housing Opportunity Fund (the “Fund”).

The Fund will provide loans, grants or other subsidies to support the creation, preservation and rehabilitation of affordable, supportive and workforce housing across the State. Funding will be available to housing owners and developers, not-for-profit organizations, municipalities and other agencies in order to further programs that support such housing. The Fund will be administered by the State of New York Mortgage Agency (SONYMA), with the assistance of a policy advisory panel comprised of the Commissioners of State agencies involved in the development and support of affordable and supportive housing. This panel, which will be co-chaired by the Commissioner of the Division of Housing and Community Renewal and the President and Chief Executive Officer of SONYMA, will develop recommended allocation plans for the Fund; these plans will be subject to approval by the Director of the Budget.

The bill extends the powers of the MIF to allow MIF reserves and interest earnings, as well as other State and Federal moneys, to be transferred to the new Fund account. The bill further provides that the Fund will be seeded with an initial $100 million release of excess reserves from the MIF’s single family pool insurance account in order to fund upstate housing opportunities. Resources within the Fund will be exempt from the annual excess balance calculation.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget, which contemplates establishment of a $400 million Housing Opportunity Fund. The new Fund will be financed by the release of reserves held by the MIF and the sale of property at the Jacob K. Javits Convention Center site, and will provide $300 million for downstate housing efforts and $100 million for upstate housing efforts.

Effective Date:

This bill will take effect immediately.

Part AA – Dedicate the local share of receipts from the Seneca Buffalo Creek Casino to the City of Buffalo.

Purpose:

Chapter 383 of the Laws of 2001 established the Tribal State Compact Revenue Account which provides that the State share a portion of any revenues received from the Native American casinos with municipal governments that host these facilities. This bill amends the Tribal State Compact Revenue Account statute to specify that the local share of State revenue received from the new Seneca Buffalo Creek Casino be directed to the City of Buffalo.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This bill amends Section 99-h of State Finance Law to clarify that the City of Buffalo is the host municipality of the Seneca Buffalo Creek Casino, which entitles Buffalo to 25 percent of revenues generated by the casino. This funding will reimburse the City of Buffalo for costs incurred as a result of the casino operating in downtown Buffalo; it will also support economic development initiatives to help revitalize Buffalo.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget, which assumes a $1.2 million payment to the City of Buffalo for the local share of revenue generated by the Seneca Buffalo Creek Casino.

Effective Date:

This bill takes effect on April 1, 2008.

Part BB – Amend the Jacob K. Javits Convention Center enabling legislation.

Purpose:

This bill amends the law authorizing the construction, expansion and renovation of the Jacob K. Javits Convention Center (Javits Center) to permit the Convention Center Development Corporation (CCDC), a subsidiary of the New York State Urban Development Corporation, to dispose of real and personal property.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

CCDC owns multiple parcels of land at and adjacent to the Javits Center site that may not be incorporated into or required for the continued use or expansion of the Javits Center.

The bill contains revisions to enable the CCDC to:

• Dispose of any property owned by CCDC determined to be unnecessary for current or future expansion plans for the Javits Center;
• Transfer the proceeds of any disposition of property to the New York State Urban Development Corporation or the State of New York Mortgage Agency for any lawful purpose, subject to obligations set forth in any applicable bond resolution; and
• Terminate any leases between the State, local entities, and public authorities encumbering the disposed property.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget which proposes that proceeds from the sale of land adjacent to the Javits Center will generate revenue to support downstate housing initiatives, commuter transit improvements and other downstate community revitalization efforts.

Effective Date:

This bill takes effect April 1, 2008.

Part CC – Establish the Omnibus Economic Development Investment Act of 2008.

Purpose:

This bill establishes the following funds and programs to revitalize the State economy: the Upstate Regional Blueprint Fund, the Downstate Revitalization Fund, the Upstate Agricultural Economic Development Fund, the New York State Economic and Community Development Program, and the New York State Arts and Cultural Program.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This bill enables the State to make strategic investments in upstate and downstate urban areas, farming communities and rural areas, and the State's arts and cultural resources by establishing the legal, programmatic and fiscal framework associated with the Governor's Economic Development program as follows:

• The Upstate Regional Blueprint Fund will assist projects related to the Regional Blueprints Initiative. All funded applications will be approved by the Upstate Chairman, subject to approval by the board of directors of the Upstate Empire State Development Corporation (ESDC).
• The Downstate Revitalization Fund will assist economic development projects in distressed areas of Downstate. All funded applications will be approved by the Downstate Chairman, subject to approval by the board of directors of ESDC.
• The Upstate Agricultural Economic Development Fund will assist projects related to farm expansion, farm retention and agribusiness. All funded applications will be approved by the Upstate Chairman of ESDC, in consultation with the Commissioner of the Department of Agriculture and Markets, subject to approval by the board of directors of the Upstate ESDC.
• The New York State Arts and Cultural Capital Grants Program will support the preservation and expansion of cultural institutions. Only projects costing $250,000 or more will be eligible for grants under this program, and will be required to demonstrate the economic and social benefit of state funding, subject to a spending plan approved by the Director of the Division of the Budget.
• The New York State Economic and Community Reinvestment Program will support projects that will facilitate the development and preservation of New York State’s educational, recreational, tourism and infrastructure resources. Projects costing $250,000 or more will be eligible for grants under this program and shall be required to demonstrate the economic and social benefit of State funding, and are subject to a spending plan approved by the Director of the Division of the Budget.
• Proceeds from the sale of the Manhattan Developmental Center, owned by the Office of Mental Retardation and Developmental Disabilities, will be used to fund the Upstate Regional Blueprint Account.
• Proceeds from the sale of 21.2 acres in Brooklyn owned by the Office of Mental Health will be used to fund the Upstate Regional Blueprint Account.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget. These programs are critical components of the Governor's $1 billion Upstate Revitalization Fund, while the Downstate Revitalization Fund will help to bolster local economies and improve quality of life.

Effective Date:

This bill takes effect April 1, 2008.

Part DD – Authorize and direct the State Comptroller to deposit to the credit of the Office of Parks, Recreation and Historic Preservation payment in the amount of $8,000,000 from the Power Authority of the State of New York.

Purpose:

The bill authorizes and directs the Comptroller to receive for deposit to the credit of the Office of Parks, Recreation and Historic Preservation (OPRHP) payment in the amount of $8,000,000 from the Power Authority of the State of New York (NYPA) for the operation and maintenance of certain State parks in the vicinity of the Niagara and Saint Lawrence-FDR hydroelectric projects.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

The bill authorizes the Comptroller to receive for deposit into the OPRHP special revenue funds-other state operations miscellaneous special revenue fund-399, patron services account payment in the amount of $8,000,000 from NYPA for the operation and maintenance of certain State parks in the vicinity of the Niagara and Saint Lawrence-FDR hydroelectric projects.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget to preserve current revenues.

Effective Date:

This bill takes effect immediately, and is deemed to have been in full force and effect on and after April 1, 2008.

Part EE – Increase the Operating Permit Program fees for regulated sources subject to the Federal Clean Air Act (Title V facilities).

Purpose:

This bill amends the Environmental Conservation Law to increase operating permit fees, establish minimum fees, provide for an annual adjustment of the fees based on the Consumer Price Index, and eliminate the current per-contaminant cap.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

Title V of the Federal Clean Air Act requires that states regulate facilities that emit a certain level of contaminants into the air. Title V also requires that the State’s Operating Permit Program fund all direct and indirect costs of the Title V/Operating Permit Program.

This bill increases operating permit fees on regulated air contaminants from $45 to a maximum of $80 per ton; provides for an annual adjustment of the annual fees based on the Consumer Price Index; establishes a minimum fee for regulated sources of $5,000; and eliminates the current annual 6,000 ton per-contaminant cap. This proposal is similar to a proposal that was last introduced as part of the State fiscal year 2007-08 Executive Budget.

Budget Implications:

Revenue from the Operating Permit Program Account supports staffing and non-personal services for the Department of Environmental Conservation, Department of Health, Empire State Development Corporation, and Environmental Facilities Corporation. Without the fee increase, the Account will continue to have a negative cash flow because current Title V fee revenue is insufficient to cover program expenditures.

Effective Date:

This bill takes effect immediately and is deemed to have been in full force and effect on and after January 1, 2008.

Part FF – Make permanent the current time frames for review of pesticide product registration applications and pesticide product registration fees.

Purpose:

This bill would amend Chapter 67 of the Laws of 1992 and the Environmental Conservation Law (ECL) to make permanent the current time frames for review of pesticide product registration applications and pesticide product registration fees.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

Section 1 of the bill amends Section 9 of Chapter 67 of the Laws of 1992 to remove the sunset date applicable to ECL §33-0704, and make permanent the current time frames relating to the Commissioner of Environmental Conservation’s review of pesticide product registration applications.

Section 2 of the bill amends ECL §33-0705 to make permanent the current pesticide product registration fees.

Section 3 of the bill sets forth the effective date.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget. The product registration fees established pursuant to ECL §33-0705 are scheduled to revert to $50 after July 1, 2008, which would result in a loss of more than $3 million. In addition, ECL §33-0704 is scheduled to sunset July 1, 2008 pursuant to Chapter 67 of the Laws of 1992.

Effective Date:

This bill takes effect immediately.

Part GG – Expand the “Bottle Bill” to cover additional beverage containers, and to provide for the return of unclaimed deposits on beverage containers to the State for deposit into the Environmental Protection Fund (EPF).

Purpose:

This bill amends the Environmental Conservation Law (ECL), the Economic Development Law and the State Finance Law to cover additional types of beverage containers, and provide for the payment of unclaimed deposits on beverage containers to the State for deposit into the Environmental Protection Fund (EPF).

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

The current law governing the collection of deposits on beverage containers (the “Bottle Bill”) does not require the collection of deposits on, or the redemption of, non-carbonated beverage containers.

This bill expands the Bottle Bill statute to cover additional beverage containers (with the exception of liquor, wine, infant formula, milk, rice milk, soy milk, nutritional supplements, medications, concentrates and soups). Additionally, the bill establishes mechanisms by which deposit initiators (generally, bottlers or distributors) will be required to pay unclaimed deposits on a quarterly basis to the Department of Taxation and Finance for deposit into the EPF. The bill also increases the industry “handling fee” from two cents to three-and-a-half cents.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget. Moneys received from unclaimed deposits will be deposited in the EPF to support critical environmental programs. Under current law, unclaimed deposits remain with the industry. Since the new payment obligations under the expanded Bottle Bill will be effective as of January 1, 2009, one quarter of the anticipated annual revenues ($25 million) will be realized in State fiscal year 2008-09.

Effective Date:

The bill takes effective immediately, except that sections 2 and 3 of the bill take effect September 1, 2008; sections 4-6, 6-a, 8, 10, 12 and 13 of the bill take effect January 1, 2009; and section 7 of the bill takes effect September 1, 2008, except that the requirements to make deposits, file reports and make withdrawals and payments under ECL § 27-1012 as added by section 7 first applies to the period beginning on January 1, 2009 and ending February 28, 2009.

The provisions of this act shall take effect immediately, provided, however, that the applicable effective date of each part of this act shall be as specifically set forth in the last section of such part.