2009-10 NEW YORK STATE EXECUTIVE BUDGET
PUBLIC PROTECTION AND GENERAL GOVERNMENT
ARTICLE VII LEGISLATION
MEMORANDUM IN SUPPORT

Contents
PART	DESCRIPTION	STARTING PAGE NUMBER
A	Expand the use of funds deposited into the Criminal Justice Improvement Account	10
B	Make technical changes to the State Wireless Communications Service Surcharge	11
C	Establish a fee to cover the state cost of processing waivers under Section 211 of the Retirement and Social Security Law	12
D	Create a not-for-profit corporation and transfer the Office of Cyber Security and Critical Infrastructure Coordination to that corporation	13
E	Limit reimbursement to health care providers for performing forensic rape examinations to actual costs not to exceed $800; establish a one year time limit on submission of claims for reimbursement of medical and counseling expenses; and allow restitution to be paid by credit card	14
F	Require applicants to be licensed as an insurance agent, broker, adjuster, consultant, or intermediary, to submit their fingerprints to the Division of Criminal Justice Services as part of a background check	15
G	Establish fees for new and renewal certification of security guard instructors and security guard training schools operating in New York State	16
H	Modify the prison closure notification requirement and authorize the acceptance by the Department of Correctional Services to house local inmates and federal prisoners	17
I	Delay the expansion of mental health programs authorized by the SHU Exclusion Bill and curtail or modify other provisions of the bill relating to the Department of Correctional Services (DOCS) facilities that do not generally house inmates with serious mental illnesses and the training of DOCS personnel	19
J	Expand eligibility criteria for state inmates to qualify for medical parole and streamline the medical parole application process	20
K	Authorize the Department of Correctional Services to sell its cook-chill products to not-for-profit organizations (food kitchens and shelters) at the cost to produce and deliver the products	22
L	Expand eligibility for the Shock Incarceration Program and establish a new limited credit time allowance for inmates	22
M	Eliminate reimbursement of local jails for the housing of parole violators and state-ready inmates, except in instances where the Department of Correctional Services (DOCS) cannot provide a general confinement bed within 10 business days after notification that an inmate is state ready	24
N	Encourage the adoption of graduated sanctions for parole violators and the use of a risk and needs assessment instrument	26
O	Credit probation sentences for time served under interim supervision; and implement a one-time $25 probation registration fee with the revenue to be retained by local probation departments	27
P	Eliminate Batterers Project funding administered by the Office for the Prevention of Domestic Violence	28
Q	Modify the responsibilities of the State Commission of Correction and provide options to administrators of local jails to reduce their operating costs	29
R	Increase the assessment on nuclear power plant facilities to support emergency preparedness planning efforts	30
S	Establish a program for photo-monitoring enforcement of speed limits in work zones and designated stretches of highway	31
T	Increase the Motor Vehicle Law Enforcement fee applied to the purchase of vehicle insurance to support the cost of state police operations	32
U	Extend various criminal justice programs that would otherwise sunset	33
V	Abolish the State Employment Relations Board and shift responsibilities to the Public Employment Relations Board	34
W	Establish the Office of Procurement Services to ensure that the state is undertaking procurement consistent with best practices to receive the maximum value at the lowest possible cost	35
X	Modify the maintenance-of-effort (MOE) requirement for counties and the City of New York to receive funds from the Indigent Legal Services Fund and the formula for distribution of such funds	36
Y	Provide the New York State Health Insurance Program the option to operate as a self-insured plan	37
Z	Establish a sliding scale for retiree health insurance premium contributions for future state retirees	38
AA	Require state employees and retirees to contribute to Medicare Part B premiums	39
BB	Eliminate the general salary increases scheduled on or after April 1, 2009 provided for in collective bargaining agreements, interest arbitration awards, and for M/C employees	40
CC	Implement a Tier 5 pension benefit for newly hired state and local government employees	41
DD	Authorize a new tier of pension benefits for newly hired New York City uniformed employees, submitted at the request of the Mayor	42
EE	Implement an additional 5-day pay deferral for all state employees	44
FF	Reduce state payments in lieu of taxes and freeze payments for taxes on state owned lands	45
GG	Modify the Aid and Incentives for Municipalities (AIM) program	46
HH	Provide mandate relief for local governments	48
II	Extend authorization for the Office of Real Property Services to charge oil and natural gas producers for determining the property value of oil and gas units of production	49
JJ	Increase the real property transfer fees that support expenses of the Office of Real Property Services, and redirect the deposit of these fees to the General Fund	50
KK	Restructure state aid provided to municipalities in which a video lottery gaming facility is located	51
LL	Expand New York City’s Red Light Camera Traffic Safety program, and provide certain cities and counties authorization to administer a similar program	52
MM	Authorize cities and villages to collect utilities gross receipts taxes on mobile phone services	53
NN	Enact recommendations made by the Commission on Local Government Efficiency and Competitiveness	54
OO	Authorize the City of New York to increase certain fees	57
PP	Authorize transfers, temporary loans and miscellaneous capital/debt provisions, including certain bond caps	59

MEMORANDUM IN SUPPORT

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

AN ACT to amend the state finance law, in relation to expanding the use of funds deposited in the criminal justice improvement account (Part A); to amend the tax law, in relation to imposing a state public safety communications surcharge, and clarifying the distribution of revenue from the surcharge; and to repeal section 309 of the county law relating to the state wireless communications service surcharge (Part B); to amend the retirement and social security law, in relation to authorizing the state civil service commission to charge local government employers a processing fee for waiver requests under section 211 of the retirement and social security law (Part C); to amend the not-for-profit corporation law and the executive law, in relation to establishing a corporation to provide cyber security and critical infrastructure coordination services and to repeal section 715 of the executive law relating to records and data (Part D); to amend the executive law, in relation to the sexual assault forensic exam reimbursement fee and for a time limitation on claims for reimbursement, and the criminal procedure law and the judiciary law, in relation to allowing payment of restitution by credit card (Part E); to amend the insurance law, in relation to requiring any person who applies to be licensed as an insurance agent, broker, adjuster, consultant, or intermediary to submit their fingerprints as part of a criminal background check (Part F); to amend the executive law, in relation to imposing fees for the certification and certification renewal of security guard instructors and training schools (Part G); to amend the correction law, in relation to authorizing the commissioner of correctional services to close a correctional facility by means of an accelerated procedure, providing for the custody by the department of correctional services of inmates serving definite sentences and providing for custody of federal prisoners (Part H); to amend the correction law, in relation to delaying the implementation date for certain mental health programs in the department of corrections until July 2014; limiting certain mental health programs to level one and level two correctional facilities; and in relation to training requirements for these programs; repealing certain provisions of such law relating thereto (Part I); amend the executive law and the penal law, in relation to the eligibility criteria for medical parole (Part J); to amend the correction law, in relation to authorizing the sale of food products to charitable organizations (Part K); to amend the correction law, in relation to expanding eligibility for the shock incarceration program and to permitting time credit allowances for certain inmates (Part L); to amend the executive law and the correction law, in relation to eliminating reimbursement to localities for housing technical parole violators and state ready inmates except in situations where the department of correctional services is unable to provide a general confinement bed within ten business days of notification; and to repeal certain provisions of such laws relating thereto (Part M); to amend the executive law, in relation to supporting the use of graduated sanctions for parole violators and allowing parole board members to use a risk and needs assessment instrument in making their release determinations (Part N); to amend the criminal procedure law, in relation to permitting a term of interim probation to be credited against a subsequent sentence of probation; and to amend the executive law, in relation to allowing for the implementation of a probation registration fee (Part O); to repeal section 576 of the executive law, relating to eliminating the batterers program that is administered by the office for the prevention of domestic violence (Part P); to amend the correction law and the executive law, in relation to providing that the state commission of correction is not mandated to have oversight over facilities accredited with the American Correctional Association; to amend the correction law and the criminal procedure law, in relation to providing county jails with options to reduce their operating costs; and to repeal certain provisions of the correction law relating thereto (Part Q); to amend the executive law, in relation to increasing the fee paid by nuclear power generating plant operators in support of state and local radiological emergency preparedness requirements; and to repeal certain provisions of such law relating thereto (Part R); to amend the vehicle and traffic law, in relation to the denial of registration or renewal for certain violations; in relation to the suspension of registration for failure to answer or pay penalties with respect to certain violations; and in relation to establishing a photo-monitoring program to impose fines for failing to obey work zone speed limits and for failing to obey certain posted speed limits (Part S); to amend the insurance law, in relation to the motor vehicle law enforcement fee; to amend the state finance law, in relation to the motor vehicle theft and insurance fund and the state police motor vehicle law enforcement account; to amend the executive law, in relation to making permanent the applicability of the plan of operation and grant award process of the motor vehicle theft and insurance fraud prevention demonstration program; to amend chapter 62 of the laws of 2003, amending the insurance law and other laws relating to motor vehicle law enforcement fees, 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 and 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 making certain provisions permanent; to repeal certain provisions of the insurance law, relating to providing funding to the motor vehicle theft and insurance fraud and prevention fund; and to repeal subdivision (bbb) of section 427 of chapter 55 of the laws of 1992 amending the tax law generally and enacting the omnibus revenue act of 1992 relating to taxes, surcharges, fees and funding, relating to making the motor vehicle theft and insurance fraud prevention fund permanent (Part T); to amend chapter 887 of the laws of 1983, amending the correction law relating to the psychological testing of candidates, in relation to extending the expiration of such chapter; to amend chapter 428 of the laws of 1999, amending the executive law and the criminal procedure law relating to expanding the geographic area of employment of certain police officers, in relation to extending the expiration of such chapter; to amend chapter 886 of the laws of 1972, amending the correction law and the penal law relating to prisoner furloughs in certain cases and the crime of absconding therefrom, in relation to extending the expiration of such chapter; to amend chapter 261 of the laws of 1987, amending chapters 50, 53 and 54 of the laws of 1987, the correction law, the penal law and other chapters and laws relating to correctional facilities, in relation to extending the expiration of such chapter; to amend chapter 55 of the laws of 1992, amending the tax law and other laws relating to taxes, surcharges, fees and funding, in relation to extending the expiration of certain provisions of such chapter; to amend chapter 339 of the laws of 1972, amending the correction law and the penal law relating to inmate work release, furlough and leave, in relation to extending the expiration of such chapter; to amend chapter 60 of the laws of 1994 relating to certain provisions which impact upon expenditure of certain appropriations made by chapter 50 of the laws of 1994 enacting the state operations budget, in relation to extending the expiration of certain provisions of such chapter; to amend chapter 554 of the laws of 1986, amending the correction law and the penal law relating to providing for community treatment facilities and establishing the crime of absconding from the community treatment facility, in relation to extending the expiration of such chapter; to amend chapter 3 of the laws of 1995, amending the correction law and other laws relating to the incarceration fee, in relation to extending the expiration of certain provisions of such chapter; to amend chapter 907 of the laws of 1984, amending the correction law, the New York city criminal court act and the executive law relating to prison and jail housing and alternatives to detention and incarceration programs, in relation to extending the expiration of certain provisions of such chapter; to amend chapter 166 of the laws of 1991, amending the tax law and other laws relating to taxes, in relation to extending the expiration of certain provisions of such chapter; to amend the vehicle and traffic law, in relation to extending the expiration of the mandatory surcharge and victim assistance fee; to amend chapter 713 of the laws of 1988, amending the vehicle and traffic law relating to the ignition interlock device program, in relation to extending the expiration thereof; to amend chapter 435 of the laws of 1997, amending the military law and other laws relating to various provisions, in relation to extending the expiration date of the merit provisions of the correction law and the penal law of such chapter; to amend chapter 412 of the laws of 1999, amending the civil practice law and rules and the court of claims act relating to prisoner litigation reform, in relation to extending the expiration of the inmate filing fee provisions of the civil practice law and rules and general filing fee provision and inmate property claims exhaustion requirement of the court of claims act of such chapter; to amend chapter 222 of the laws of 1994 constituting the family protection and domestic violence intervention act of 1994, in relation to extending the expiration of certain provisions of the criminal procedure law requiring the arrest of certain persons engaged in family violence; to amend chapter 505 of the laws of 1985, amending the criminal procedure law relating to the use of closed-circuit television and other protective measures for certain child witnesses, in relation to extending the expiration of the provisions thereof; to amend chapter 688 of the laws of 2003, amending the executive law relating to enacting the interstate compact for adult offender supervision, in relation to extending the expiration of certain provisions of such chapter; to amend chapter 56 of the laws of 2000, amending the public health law, the general business law and the insurance law relating to the sale and possession of hypodermic syringes and needles in relation to extending the expiration thereof; to amend chapter 3 of the laws of 1995, enacting the sentencing reform act of 1995, in relation to extending the expiration of certain provisions of such chapter; to amend chapter 377 of the laws of 2007 amending the correction law and the criminal procedure law relating to establishing a probation detainer warrant pilot project, in relation to extending such chapter; to amend chapter 894 of the laws of 1990 amending the criminal procedure law relating to electronic court appearances, in relation to the effectiveness thereof; to repeal section 9 of part B of chapter 58 of the laws of 2007, amending the public health law, the general business law and the insurance law, relating to the sale and possession of hypodermic syringes and needles; to repeal subdivision (r) of section 427 of chapter 55 of the laws of 1992 amending the tax law and other laws relating to taxes (Part U); to amend the civil service law, the labor law and the executive law, in relation to abolishing the state employment relations board and shift responsibilities to the public employment relations board; and to repeal certain provisions of the labor law relating thereto (Part V); to amend the executive law, the state finance law and the general municipal law, in relation to establishing the office for procurement services (Part W); to amend the state finance law, in relation to the distribution of funds to counties for the cost of legal services for the indigent (Part X); to amend the civil service law and the state finance law, in relation to allowing the New York state employee health insurance plan to have the option to be self insured; and to amend the parks, recreation and historic preservation law, in relation to the health benefit plan for employees (Part Y); to amend the civil service law, in relation to contributions for health insurance coverage of retired state employees (Part Z); to amend the civil service law, in relation to reimbursement for medicare premium charges (Part AA); to implement a wage freeze; and providing for the expiration thereof (Part BB); to amend the retirement and social security law, the education law, and the general municipal law, in relation to the retirement benefits available to newly hired employees (Part CC); to amend the retirement and social security law and the administrative code of the city of New York, in relation to the New York city police or fire revised plan Part DD); to amend the state finance law, in relation to implementing a payroll deferral (Part EE); to amend the real property tax law, in relation to the payment of taxes by the state; and to amend the public lands law, in relation to taxes and assessments for local improvements on state lands and state aid for certain state-leased or state-owned lands (Part FF); to amend the state finance law, in relation to aid and incentives for municipalities (Part GG); to amend the general municipal law, the state finance law, the public housing law, the education law, the public authorities law, chapter 560 of the laws of 1980 authorizing the city of New York to adopt a solid waste management law, chapter 892 of the laws of 1971 amending the public authorities law and other laws relating to enabling the dormitory authority to construct and finance dormitories, buildings and health facilities, and the labor law, in relation to separate specifications for public works contracts; to amend chapter 738 of the laws of 1988, amending the administrative code of the city of New York and other laws relating to establishing the New York city school construction authority, in relation to extending the effectiveness thereof; to amend the civil practice law and rules, in relation to the impact of collateral source payments upon tort claims for personal injury, property damage or wrongful death; 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 paid on judgments; to amend the general municipal law, in relation to purchasing requirements; to amend the public authorities law, in relation to bonds issued by the New York city transitional finance authority; to amend chapter 868 of the laws of 1975 constituting the New York state financial emergency act for the city of New York, in relation to bond anticipation notes and to amend the New York city charter, in relation to bond anticipation notes; to repeal subdivisions (a) and (b) of section 4545 of the civil practice law and rules relating to the admissibility of collateral source of payment; and to repeal subdivisions (d) and (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; and providing for the repeal of certain provisions of this act upon expiration thereof (Part HH); to amend chapter 540 of the laws of 1992 amending the real property tax law relating to oil and gas charges, in relation to the effective date of such chapter (Part II); to amend the real property law and the state finance law, in relation to when conveyances of real property are not to be recorded and the fees associated with such conveyances and where such fees shall be deposited (Part JJ); to amend the state finance law, in relation to state assistance to cities and municipalities where a video lottery gaming facility is located (Part KK); to amend the vehicle and traffic law and the administrative code of the city of New York, in relation to a program imposing monetary liability on the owner of a vehicle for failure of an operator thereof to comply with traffic control indications in certain counties and cities; to amend chapter 746 of the laws of 1988 amending the vehicle and traffic law, the general municipal law and the public officers law relating to the civil liability of vehicle owners for traffic control signal violations, in relation to the effectiveness of such chapter; to amend local law number 46 of the city of New York for the year 1989 amending the administrative code of the city of New York, relating to civil liability of vehicle owners for traffic control signal violations, in relation to the effectiveness thereof; and to repeal certain provisions of the vehicle and traffic law and the administrative code of the city of New York relating to an owner liability demonstration program (Part LL); to amend the general city law and the village law, in relation to authorizing the imposition of locally administered utility taxes on mobile telecommunications service (Part MM); to amend the insurance law, in relation to municipal cooperative health benefit plans, a study of community rating and the provision of claims experience to a municipality; to amend the agriculture and markets law and the county law, in relation to the sharing of the duties of weights and measures between municipalities; to amend the general municipal law and the highway law, in relation to mutual aid; to amend the public health law, in relation to the composition of county and part-county boards of health; to amend the town law, in relation to eliminating compensation for town special district commissioners; to amend the town law, in relation to the provision of sanitary services in the areas of towns outside of villages; to amend the general municipal law, in relation to processes for municipal consolidation or dissolution; to amend the village law, in relation to submissions for a proposition of the dissolution or consolidation of a village; to amend the town law, in relation to consolidation of fire districts proposed to be included within a consolidated district; to amend the town law, in relation to the elective offices of town clerk, superintendent of highways and office of receiver of taxes, in relation to the collection of taxes by the town clerk and in relation to the office of the town superintendent of highways; and to repeal certain provisions of the village law and the town law relating thereto (Part NN); to amend the domestic relations law, the executive law and the public health law, in relation to authorizing the city clerk of New York city to collect various fees for performing marriage ceremonies, for issuing marriage certificates and certified copies of such certificates, for performing searches of public records and from persons appointed as commissioners of deeds (Part OO); and to provide for the administration of certain funds and accounts related to the 2009-2010 budget; to authorize certain payments and transfers; to amend the state finance law, in relation to the school tax relief fund; to amend chapter 57 of the laws of 2008 providing for the administration of certain funds and accounts related to the 2008-2009 budget, in relation to the effectiveness of certain provisions thereof; to amend chapter 60 of the laws of 1993, amending the public authorities law and other laws relating to the bonding authority of the environmental facilities corporation, and the state finance law, in relation to the rainy day reserve fund; to amend the state finance law, in relation to temporary loans of money or other financial resources to the general fund; to direct the comptroller to transfer and deposit certain moneys; to amend the state finance law, in relation to variable rate bonds; to amend the public authorities law, in relation to the issuance of bonds by the dormitory authority and the New York state environmental facilities corporation; to amend chapter 61 of the laws of 2005, providing for the administration of certain funds and accounts related to the 2005-2006 budget, in relation to issuance of bonds by the urban development corporation; to amend chapter 81 of the laws of 2002, providing for the administration of certain funds and accounts related to the 2002-2003 budget, in relation to the issuance of bonds by the urban development corporation; to amend the state finance law, in relation to issuance of certificates of participation; to amend chapter 389 of the laws of 1997, providing for the financing of the correctional facilities improvement fund and the youth improvement fund, in relation to issuance of debt by the urban development corporation; to amend the private housing finance law, in relation to housing program bonds and notes; to amend the New York state urban development corporation act, in relation to economic development initiatives and the state's right to require redemption of bonds; to amend chapter 329 of the laws of 1991, amending the state finance law and other laws relating to the establishment of the dedicated highway and bridge trust fund, in relation to reducing funding therefore; to amend the state finance law, in relation to the issuance of revenue bonds; to amend the private housing finance law and the public authorities law, in relation to the state's right to require redemption or bonds; to amend the state finance law, in relation to state-supported debt; to repeal certain provisions of chapter 59 of the laws of 2008, amending chapter 57 of the laws of 2007, providing funding for certain community projects, relating to increasing such funding, relating to transfers of moneys for such projects; to repeal subdivision (b) of section 1 of part P of chapter 57 of the laws of 2007 providing funding for certain community projects, relating thereto; and providing for the repeal of certain provisions upon the expiration thereof (Part PP)

PURPOSE:

This bill contains provisions needed to implement the Public Protection and General Government portions of the 2009-10 Executive Budget.

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

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

Purpose:

This bill would expand the use of the Criminal Justice Improvement Account to enable funding to be used for local criminal justice programs which support efforts to prosecute and reduce crime, and clarifies that the account may also be used to support the operation of the Crime Victims Board.

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

Subdivision 3 of Section 97-bb of the State Finance Law is amended to allow funds deposited into the Criminal Justice Improvement Account (CJIA) to be used for expanded purposes, which closely relate to the current uses of the account. Under existing statute, funds in the CJIA are used exclusively to fund crime victims programs.

This bill will expand allowable uses of the Criminal Justice Improvement Account, thereby allowing available resources to be used to continue programs which might otherwise be reduced due to fiscal constraints. All existing crime victims programs already supported by this source remain fully funded.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget, providing $15 million in support for criminal justice and victims services programs, which would otherwise require General Fund support in 2009-10.

Effective Date:

This bill takes effect April 1, 2009.

Part B – Make technical changes to the State Wireless Communications Service Surcharge

Purpose:

This bill would move the State wireless communications service surcharge from the County Law to the Tax Law and would make technical and administrative amendments.

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

This bill would preserve the substance of the existing State surcharge on wireless communications but would clarify that the purpose of the surcharge is to provide revenue for a variety of public safety purposes that are not specifically designated for the support or implementation of 911 or enhanced 911 services. Moving the surcharge to the Tax Law reflects the fact that the Tax Department currently handles the collection of the fee, and would incorporate the general administrative powers of the Commissioner that are applicable to other taxes imposed under the Tax Law. There are no administrative or enforcement provisions in the current surcharge. By adding administrative provisions, the bill would allow the Tax Department to enforce payment of the surcharge and pay refund claims. The Tax Department currently lacks the authority to pay refund claims, which has caused problems for providers and individuals who have overpaid or paid the surcharge in error.

The new surcharge would be named the Public Safety Communications Surcharge and wireless communication service suppliers would be required to refer to it by that name on bills provided to their customers. This provides more transparency to consumers, who are often confused by the description of taxes and fees on phone bills. The bill would maintain the existing administrative allowance for suppliers, but would condition the allowance on timely payment of the surcharge and filing of the required return. Amending the exemption from the surcharge to apply to the State, its agencies, instrumentalities and political subdivisions corrects an ambiguity in existing law. The current exemption applies to municipalities that “participate with” the State police in the provision of E-911 service. Questions have arisen about what constitutes the required “participation.” The bill corrects this ambiguity and reflects the fact that the surcharge is imposed to fund broader public safety purposes than merely E-911 service. Finally, this bill would conform the revenue distribution to existing practice, by eliminating the expired distribution provisions for homeland security and the Communications Assistance Law Enforcement Act (CALEA) purposes.

Bills to amend the wireless communications surcharges have been proposed as part of the Executive Budget for State Fiscal Years 2005-06, 2006-07 and 2008-09, but were not enacted. This bill is much narrower in scope than earlier proposals, because it affects only the State surcharge and makes few substantive changes to the existing surcharge. The bill does not affect the county and city surcharges and, unlike prior bills, does not affect the imposition of the surcharge and sourcing of prepaid wireless communications service.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget which continues to rely on $25.5 million in support for the Division of State Police from this service.

Effective Date:

This bill takes effect on the first day of the sales tax quarter beginning at least 120 days after it becomes law.

Part C – Establish a fee to cover the state cost of processing waivers under Section 211 of the Retirement and Social Security Law

Purpose:

This bill would authorize the Civil Service Commission to impose a new $200 application fee on any county, town, village, school district or other local government employer for each request made to the Civil Service Commission to employ a public retiree under the provisions of Retirement and Social Security Law (“RSSL”) Section 211.

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

The Civil Service Commission annually processes approximately 300 applications from local governments seeking waivers under the provisions of RSSL Section 211. Each application requires extensive review by staff of the Commission. The complexity and amount of time necessary to review these applications has recently increased due to Chapter 640 of the laws of 2008, which requires additional criteria be considered by the Commission in reaching a determination.

To spread the costs of such applications, and to limit unnecessary or frivolous filings, this bill would amend RSSL Section 211 by adding a new subsection 9 authorizing the Civil Service Commission to require localities who are prospective employers of a public retiree to pay a $200 per waiver application.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget. An estimated $60,000 in revenue will be generated by this new fee, which will be deposited into the Examination and Miscellaneous Revenue Account, and used to defray State costs.

Effective Date:

This bill takes effect immediately.

Part D – Create a not-for-profit corporation and transfer the Office of Cyber Security and Critical Infrastructure Coordination to that corporation

Purpose:

This bill will create a not-for-profit corporation to provide cyber security and critical infrastructure coordination services and transfer certain functions, officers and employees of the Office of Cyber Security and Critical Infrastructure Coordination (CSCIC) to such corporation. This bill will also authorize the State to contract with the corporation to perform any and all of its related functions, powers, and duties.

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

This bill will convert CSCIC into a not-for-profit corporation to provide cyber security operations, integration, and geographic information systems services. The State would then contract with the new corporation for cyber security services to the State.

The not-for-profit structure will facilitate the development of critical and strategic partnerships between the Federal, state, and local governments and private industry. Such partnerships increase opportunities to promote innovative and improved approaches that will enhance the State’s capacity to prepare for and respond to rapidly evolving cyber security threats. They will also provide access to a wide array of additional funding mechanisms, including, but not limited to, grants and joint ventures.

The not-for-profit corporation will be in a position to act as the focal point for the nationwide exchange of cyber security and critical infrastructure information by state and local governments. In such a role, the not-for-profit corporation will be a leader in cyber security and critical infrastructure coordination activities. Such activities will not only enhance the public’s security, but will also generate additional economic benefits in the form of employment and services.

It is well documented that the dynamic nature of cyber security threats and attacks necessitates a proactive strategy that includes flexible and rapid response capabilities. Consequently, the State’s significant interest in providing the most effective cyber security defense possible would be best served by the establishment of a not-for-profit corporation that will provide the legal, financial, market, and managerial flexibility necessary to meet the needs and challenges now present in cyberspace.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget

as it allows improved cyber security protections for the State while reducing reliance on General Fund support.

Effective Date:

This bill takes effect on the one-hundred fiftieth day after it shall have become a law.

Part E – Limit reimbursement to health care providers for performing forensic rape examinations to actual costs not to exceed $800; establish a one year time limit on submission of claims for reimbursement of medical and counseling expenses; and allow restitution to be paid by credit card

Purpose:

This bill improves the manner in which claims are processed by the Crime Victims Board (CVB) and better aligns reimbursement with actual costs. It also provides for payment of restitution by credit card.

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

This bill accomplishes the following:

Limits reimbursements to hospitals and health care providers for the actual cost of conducting a forensic rape examination. Current statute provides for a flat reimbursement rate of $800. However, the cost of conducting a rape examination varies and in many cases, is less than $800, which has resulted in excessive reimbursement.
Establishes a one year time limit for individuals to submit claims for reimbursement of medical and counseling expenses. Currently, there is no time limit for submitting such claims, which makes it difficult and time consuming for CVB to investigate and validate the authenticity of the claim, and delays payment time.
Allows restitution to be paid by credit card. Allowing for the payments of restitution by credit card at the time when a person is convicted of a crime or violation will increase the likelihood that restitution would be ordered and collected by the Court at the time of sentencing. Current law allows for payment by credit card for fines, mandatory surcharges and crime victim assistance fees.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget, providing $422,000.

Effective Date:

Section one of the bill relates to forensic rape exams and it takes effect immediately. Section two of this bill takes effect 180 days after becoming a law for all losses incurred on or after such effective date. Section three relates to credit card payments and it is effective the first day of November following when that section becomes a law.

Part F – Require applicants to be licensed as an insurance agent, broker, adjuster, consultant, or intermediary, to submit their fingerprints to the Division of Criminal Justice Services as part of a background check

Purpose:

This bill requires any person who is seeking a license pursuant to Article 21 of the Insurance Law to submit their fingerprints to the Division of Criminal Justice Services (DCJS) as part of a background check.

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

This bill will enable the Insurance Department to perform more thorough background checks when considering the issuance of an insurance-related license to an individual by requiring that any individual who is applying for a license under Article 21 of the Insurance Law (agents, brokers, adjusters, consultants, intermediaries) submit their fingerprints for the purposes of a state background check as performed by DCJS, and a national background check as performed by the Federal Bureau of Investigation.

DCJS is statutorily required by subdivision 8A of Section 837 of the Executive Law, to process criminally and civilly remitted fingerprints and to charge a corresponding fee. Currently, the fee for fingerprint processing is $75 -- $50 of which is deposited into the General Fund, and $25 of which is deposited into the Fingerprint Identification and Technology Account.

This proposal adds a new section 2113 to the Insurance Law, and is similar to a provision in a 2008 bill (S.7369-A, sponsored by Senator Seward). As stated in that bill, a fingerprinting requirement will allow more accurate determination of the trustworthiness of licensees, and thereby enhance insurance consumer protection in New York State.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget as this bill will generate additional revenue for the General Fund, while simultaneously increasing public safety. DCJS has estimated that this new requirement will likely result in an additional 125,000 fingerprints processed during the first two years of implementation and 35,000 per year each year thereafter. Accordingly, the Financial Plan reflects $6.25 million in revenue in both 2009-10 and 2010-11, and $1.75 million each year thereafter. This bill will also generate additional revenue into the Fingerprint Identification and Technology Account which is used for technology projects that are critical to public safety.

Effective Date:

This bill takes effect immediately.

Part G – Establish fees for new and renewal certification of security guard instructors and security guard training schools operating in New York State

Purpose:

This bill would establish fees for the initial certification and certification renewal of security guard instructors and security guard training schools operating in New York State.

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

This bill amends Section 837 of the Executive Law to allow DCJS to charge certification and certification renewal fees to security guard instructors, and security guard training schools operating in New York State. An individual applying for security guard instructor certification would pay an initial fee of $500 and pay a renewal fee of $250 every five years. An organization applying for security guard training school certification would pay an initial fee of $1,000 and a renewal fee of $500 every two years.

DCJS expends administrative resources to process and approve security guard school and instructor applications. This proposal would allow the State to recoup some of the funds it spends on this service. Additionally, there are a number of inactive schools on which the State spends resources to keep certified, even though they are not actively involved in training. Charging for the applications and renewals will provide a market-based solution to this issue, allowing the State to increase revenues and help DCJS to more efficiently allocate limited resources in this area.

There are 11 other states that have a formalized security guard training program. States such as California, Illinois, Vermont, Washington, Arizona, Ohio, Michigan and Oklahoma all currently charge fees for security services certification and renewals.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget as this bill will help offset General Fund costs associated with security guard certification by charging a fee for certifications and renewals. Imposing a $500 fee on instructors for initial certification, and a $250 certification renewal fee every five years, would generate $120,000 in annual revenue for the General Fund. Similarly, imposing a $1,000 fee on schools for initial certification, and a $500 certification renewal fee every two years would generate $326,000 in annual revenue for the General Fund. These fees will provide General Fund revenue of $446,000 in 2009-10, as well as each year thereafter.

Effective Date:

This bill takes effect immediately.

Part H – Modify the prison closure notification requirement and authorize the acceptance by the Department of Correctional Services to house local inmates and federal prisoners

Purpose:

This bill amends the Correction Law to expedite the prison closure process in times of economic crisis, and allows the Commissioner of Correctional Services to close correctional facility annexes and special housing units at his discretion. This bill also allows the Commissioner to enter into contracts for housing local and federal prisoners.

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

Since a peak of 71,600 inmates in December 1999, the DOCS under-custody population has fallen by over 10,500 inmates, resulting in significant unused prison capacity. Under current law, the Commissioner is required to give notice one year before closing a prison, and to provide a re-use plan before actually closing a prison. While a laudable process, during hard economic times the State must be free to move more swiftly to eliminate excess prison capacity which represents a waste of taxpayer dollars.

This bill will enable the Commissioner to more effectively manage the State prison system during an economic crisis by: (1) reducing excess space through immediate closures of parts of facilities and accelerated closures of entire facilities; or (2) generating revenue by filling empty beds with local or federal inmates.

Under this bill, the Commissioner may consider the prompt closure of one or more prisons in the wake of an economic downturn. This section defines an economic downturn as two consecutive quarters of decline in gross domestic product as reported by the Bureau of Economic Analysis of the United States Department of Commerce. When that occurs, the one-year notice requirement for closure is suspended, and the Commissioner is authorized to close a facility upon 90 days notice. This expedited closure process than remains in effect until the third fiscal year immediately following the fiscal year in which the economic downturn occurred.

The Commissioner may only invoke the accelerated closure procedure when the following additional terms and conditions are met: (1) there are more than 300 vacant general confinement beds in existing cell blocks or housing units; (2) the Department is in substantial compliance with all court orders governing the acceptance of state ready inmates; (3) the Department will continue to have at least 300 vacant general confinement beds within existing housing units or cell blocks; and (4) the Department will not have to increase the number of variance beds.

The Commissioner, when determining which prisons should be closed, must take into account: (1) the bed needs of the Department in relation to the overall demands for prison capacity; (2) the specific use of the facility; (3) the age and condition of the facility infrastructure, including the need for capital repairs or improvements; and (4) the degree to which facility staff can be offered alternate positions within the Department.

This bill also eliminates correctional facility annexes and special housing units from all closure-notice requirements. This allows the Commissioner to administratively close these sections of correctional facilities whenever he or she deems it appropriate, resulting in cost savings to the State.

Finally, this bill gives the Commissioner the authority to use unneeded prison space and generate revenue by entering into agreements to accept definitely-sentenced inmates who would normally be housed in a local correctional facility and federal prisoners. New York already has authorization to enter into agreements with other States to house their inmates. Although these other governmental entities will be required to pay the costs of treatment, maintenance and custody if they chose to enter into such agreements, this may be an attractive and cost-effective option for those entities that would otherwise be compelled to expand existing jail capacity.

Budget Implications:

Enactment of this bill as part of the Budget will result in $26.3M in savings during Fiscal Year 2009-10. This estimate does not include revenue that may be received from the housing of local, other States' or Federal prisoners.

Effective Date:

This bill takes effect immediately.

Part I – Delay the expansion of mental health programs authorized by the SHU Exclusion Bill and curtail or modify other provisions of the bill relating to the Department of Correctional Services (DOCS) facilities that do not generally house inmates with serious mental illnesses and the training of DOCS personnel

Purpose:

This bill reduces the cost of implementing the Special Housing Unit (SHU) Exclusion Bill by delaying the effective date of the bill by three years from July 2011 until July 2014, limiting the scope of the bill to level 1 and level 2 mental health designated correctional facilities, and re-configuring the mental health training requirements for Department of Correctional Services (DOCS) personnel.

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

Chapter 1 of the Laws of 2008, referred to as the Special Housing Unit (SHU) Exclusion Bill, required an expansion of mental health programs within the Department of Correctional Service (DOCS) correctional facilities. The bill imposed requirements for the housing of inmates with mental illness that exceed those in a Private Settlement Agreement (PSA) that DOCS and the Office of Mental Health (OMH) reached with Disability Advocates, Inc. in April 2007. The SHU Exclusion bill had an effective date of either two years after the DOCS Commissioner certifies that the first new Residential Mental Health Unit is completed and ready to receive inmates or at the latest by July 1, 2011. This proposal modifies some of the provisions of the SHU Exclusion Bill that exceed the provisions of the PSA.

The PSA required the expansion of several existing mental health programs and creation of a new 100-bed Residential Mental Health Unit (RMHU) at the Marcy Correctional Facility for inmates who are in disciplinary housing but have been assessed as having a serious and persistent mental illness. The SHU Exclusion Bill included provisions that could add additional RMHUs beyond the one at Marcy. Delaying the effective date of the bill by three years will allow DOCS and OMH to evaluate the effectiveness of the new RMHU program, refine their approach, and reevaluate the need for expanded RMHU capacity.

Additionally, this proposal would eliminate the application of the SHU Exclusion Bill requirements to level 3 and level 4 DOCS correctional facilities. There are currently five designated levels for mental health services (1, 2, 3, 4, and 6) at DOCS correctional facility. Level 1 and 2 facilities generally house inmates who have the most serious mental health conditions, and OMH and DOCS mental health related staff and programs are concentrated at these level 1 and 2 facilities. Because level 3, 4 and 6 facilities should not be housing inmates with serious mental health needs, it is arguably excessive – and costly – to require mental health services in these facilities. Moreover, there is little danger that inmates in these facilities would be at risk of decompensating if they are placed in disciplinary housing, because inmates who have long terms of disciplinary housing are transferred to S-blocks in level 1 and 2 facilities with appropriate levels of mental health staff.

Finally, this proposal also sets appropriate levels of training for DOCS staff that are transferred into residential mental health units. Instead of participating in sixteen hours of initial specialized mental health training, the amount of such training will be reduced to eight hours plus an orientation program that will allow staff to receive hands-on experience in the units. Furthermore, the requirement for an additional eight hours of annual training for such staff is modified to two four-hour sessions during which the out-of-cell mental health programming and treatment for inmates may be suspended or decreased. This level of training is adequate based on existing DOCS training standards.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget as this bill will increase savings by $19 million in 2009-10, and $27.4 million in 2010-11 for both DOCS and OMH.

Effective Date:

This bill takes effect immediately.

Part J – Expand eligibility criteria for state inmates to qualify for medical parole and streamline the medical parole application process

Purpose:

This bill expands the eligibility criteria of medical parole for terminally ill inmates and permits chronically ill inmates to utilize the current medical parole law.

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

Medical parole was implemented for terminally ill State inmates in 1992. It is predominately utilized by inmates over the age of 50 who also have the lowest recidivism rates.

Over the past decade the number of inmates over the age of 55 who are incarcerated in state prison has more than doubled from approximately 1,500 inmates to over 3,600 inmates. These older inmates are generally the most seriously ill, suffering from both terminal illnesses and chronic illnesses that leave them seriously incapacitated and disabled. In particular, these chronically ill inmates not only require the most expensive medical care, but they also fill many of the available Regional Medical Unit beds in Department of Correctional Services (DOCS) facilities. As a result, inmates suffering from less serious illness must often be treated at outside hospitals, which is both costly and a higher security risk.

To address these problems, this proposal expands the number of inmates who are eligible for consideration for medical parole, but no inmate may be released unless both the Commissioner of DOCS and the Board of Parole (BOP) determine that such a release is compatible with public safety. The bill:

authorizes the release of inmates who suffer from significant and non-terminal conditions that render them so physically or cognitively debilitated that they do not present a danger to society. In evaluating the threat posed by these inmates, the BOP must consider certain criteria, including the position of the victim;

allows inmates who have been convicted of certain violent felonies to be eligible for medical parole consideration if they have served at least one-half of their sentence, except that inmates convicted of first-degree murder or an attempt or conspiracy to commit first-degree murder are not eligible;

allows inmates who are ambulatory, but who suffer from significant disabilities that limit their ability to perform significant normal activities of daily living to be eligible for consideration.

Because a number of inmates die each year before a determination has been made on their application for medical parole, this proposal also improves and streamlines the process for consideration by the Board of Parole by: (1) allowing an inmate’s spouse, relative or attorney to initiate a request for medical parole on the inmate’s behalf; (2) requiring the examining physician to recommend the types of care the inmate would require if released, and the types of settings where that care should be provided; and (3) requiring the Division of Parole, the Department of Health and the county in which the inmate resided and committed his crime to assist in formulating and implementing a medical discharge plan.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget as this bill will result in savings

Effective Date:

This bill takes effect immediately.

Part K – Authorize the Department of Correctional Services to sell its cook-chill products to not-for-profit organizations (food kitchens and shelters) at the cost to produce and deliver the products

Purpose:

This bill will allow the Department of Correctional Services (DOCS) to sell food products made at its Food Production Center to charitable organizations for the cost of the food, production and transportation.

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

This bill allows DOCS to use its excess production capacity and may reduce food costs through economies of scale. This authorization will help New Yorkers in need by supplying food kitchens and other charitable organizations with low cost food products during these hard economic times. The Food Production Center currently has available capacity that can be used to help these charitable organizations.

The bill authorizes the Commissioner to enter into agreements with homeless shelters, food kitchens and other eleemosynary organizations funded in whole or in part by Federal, State or local funds. It ensures that all proceeds from these transactions will be used only for the continued operation of the DOCS Food Production Center. This legislation protects these charitable organizations by requiring that the fee charged for these products will not exceed the cost of food, production and transportation. Finally, it allows the Commissioner to notify these organizations of the availability of these products.

Budget Implications:

Enactment of this bill will allow charitable organizations to take advantage of the excess capacity in the DOCS Food Production Center. The costs of this action will equal the revenues.

Effective Date:

This bill takes effect immediately.

Part L – Expand eligibility for the Shock Incarceration Program and establish a new limited credit time allowance for inmates

Purpose:

This bill implements some of the recommendations made by the Commission on Sentencing Reform (CSR) by allowing inmates from general confinement facilities as well as reception centers to participate in shock programs and raising the age of inmates who are eligible to participate in the program. In addition, the bill provides a limited credit time allowance for inmates serving indeterminate or determinate sentences imposed for specified offenses.

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

Although the final report from the CSR will not be released until 2009, Commission members have identified certain proposals upon which they have agreed, which will produce immediate savings if enacted expeditiously. These proposals would create merit time eligibility for certain violent offenders and broaden eligibility for the shock program.

Since its inception, the merit program has generated more than 24,052 early releases with lower return-to-custody rates, and has saved the State in excess of $372 million. Merit time encourages inmates to engage in beneficial programming that aids in their preparation for successful re-entry into the community. However, it is important when establishing new criteria for merit time that they are not just simply superficial, but rather reflect successful completion of a meaningful program. This bill achieves that end.

On average, shock graduates are released one year earlier than their court determined minimum period of incarceration and have better success rates upon release. Since the program’s inception in 1987, the State has saved an estimated $1.48 billion. By expanding this program to older offenders and those already in general confinement, the shock program could provide additional savings at little or no risk to public safety.

This bill will make the following specific changes to these programs:

Expanding the Eligibility for the Shock Incarceration Program: While the average daily cost per inmate is higher for shock, the number of days spent under custody by a released shock graduate is substantially less than if that inmate had served his or her full sentence. Under current law, to be eligible for shock, an inmate must be within three years or less of his or her parole eligibility or conditional release date when received in a DOCS reception center.
This bill allows inmates for the shock incarceration program to be selected from general confinement facilities as well as reception centers. A general confinement inmate will be eligible for the program if he or she is within three years of parole release for an indeterminate term of imprisonment or will become eligible for conditional release within three years for a determinate term of imprisonment. Additionally, the age of inmates allowed to participate in shock incarceration will be raised from 40 years of age to 50 years of age.
Establish a Credit Time Program: Merit time allows inmates serving prison sentences for certain non-violent crimes to earn a possible one-sixth reduction off their minimum term if they have achieved significant programmatic objectives, such as two years of college programming, obtaining a masters of professional studies degree, successfully participating as an inmate program associate for at least two years, receiving a Department of Labor certificate for successful participation in an apprenticeship program, or successfully working as an inmate hospice aid for at least two years, and have not committed any serious disciplinary infractions.
Under existing law, offenders serving sentences for class A-I (non-drug) or violent felony offenses are not eligible to earn merit time. This bill provides for a limited credit time allowance for certain of these inmates. Offenses not eligible for the credit time allowance include murder in the first degree or any sex offense. A single six-month allowance may be earned.

Budget Implications:

Enactment of this bill during the 2009-10 Executive Budget will result in a savings of $4 million and an annualized savings of $16 million.

Effective Date:

This bill takes effect immediately.

Part M – Eliminate reimbursement of local jails for the housing of parole violators and state-ready inmates, except in instances where the Department of Correctional Services (DOCS) cannot provide a general confinement bed within 10 business days after notification that an inmate is state ready

Purpose:

This bill amends the Correction Law and the Executive Law to eliminate State payments to localities for the housing and board of felony prisoners. These payments were originally established at a time when DOCS did not have the capacity to house these felony offenders. The law ensured that state-ready inmates were placed into State custody within five days of being sentenced, or the local jails would receive $40 per day for each inmate. It also mandated the Division of Parole (Parole) to pay the localities for housing parole violators while they awaited their hearings, with Parole's payment responsibility ending when the parole violator is released back to supervision or determined to be "state ready" for release to State prison.

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

Both DOCS and Parole currently reimburse counties for housing state-ready inmates and alleged parole violators at a rate of $37.60 per day for each inmate or alleged parole violator. This per diem rate has been altered twice recently – increasing from $34 to $40 in 2006; and being reduced by 6 percent to $37.60 this year as part of the Special Session. The current rate does not cover the counties’ true per day costs of approximately $100 (upstate) and $300 (New York City).

The Board of Prisoners payments made by DOCS were originally established at a time when there was limited space in DOCS facilities. This is no longer the case, as the State inmate population has dropped substantially over the last ten years. Because of the declining State inmate population, the number of "state-ready" inmates waiting to be transported to State facilities has likewise fallen from a high of 4,425

Board of Prisoners payments by Parole are for the incarceration of alleged parole violators. The impact on local jails from this population is also decreasing, because Parole has developed a number of strategies to expedite the parole revocation process on a county-by-county basis. These strategies include: roving Administrative Law Judges; expediting the arraignment process; issuing Certificates of Disposition; training localities on the parole violator return procedures; offering alternatives to incarceration; and establishing re-entry initiatives. Additionally, Parole has recently implemented changes in their violation process using a national Transition from Prison to the Community Initiative (TPCI) model, which has resulted in further reductions in the number of technical parole violators in local jails.

As a result of these efforts, the number of technical violators housed in local jails has decreased, with an average of 724 offenders housed in November 2008 (for jails outside of New York City). This is 25 percent lower than the high of 965 in July 2008. In New York City, the number has decreased 19 percent, from a high of 719 in February 2008 to 583 in

While eliminating the Board of Prisoners payments, this proposal nonetheless protects local jails by ensuring that the Commissioner of DOCS accepts felony offenders within 10 days of receiving written notification from a local official of an inmate’s "state ready" status. If the Department fails to accept an inmate within this time period, provided that the inmate is not in need of immediate medical care, the locality will be paid either $100 per day or the actual per day per capita cost for the board of that inmate, whichever is less, and payment will be retroactive to the date of notification.

Budget Implications:

Enactment of this bill during the 2009-10 Executive Budget will result in $10 million in savings in FY 2009-10 annualizing to $20 million each year thereafter.

Effective Date:

This bill takes effect March 1, 2009.

Part N – Encourage the adoption of graduated sanctions for parole violators and the use of a risk and needs assessment instrument

Purpose:

This bill encourages the adoption of graduated sanctions for parole violators and the use of a risk and needs assessment instrument; protects the confidentiality of information about arrests and prosecutions that were terminated in an individuals favor.

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

The Commission on Sentencing Reform has signaled their support of graduated sanctions for technical parole violators. Inherent in graduated sanctioning is the principle of providing swift and appropriate punishment based on the gravity of the offense and an assessment of the potential risk of re-offending. Graduated sanctions may take a number of forms, including: (1) increased use of curfews; (2) home confinement; (3) electronic monitoring; or (4) weekend incarceration in a local jail.

In addition to graduated sanctions, the Division of Parole, along with other criminal justice agencies, has been working towards using a validated risk and needs assessment instrument that can assist supervising agents to more accurately estimate the risk posed by an offender, identify the personal deficits that have contributed to an offender’s criminality, and capitalize on an offender’s strengths during the re-entry process. The purpose of using such instruments is not to replace professional judgment but, rather, to maximize the effectiveness of programming and supervision and, thus, improve public safety. These risk assessment tools guard against the use of intensive interventions for low-risk cases, which is critical because numerous studies have shown that intensive intervention in low-risk cases can actually increase recidivism.

This proposal would amend Penal Law § 1.05 and Executive Law § 259-a to allow the Chairman of the Board of Parole to consider the implementation of a graduated sanctions program for parole violators that utilizes a risk and needs assessment that is administered to all inmates eligible for parole. Such a graduated sanctions program could include more intensive supervision immediately after an inmate’s release, alternatives to incarceration and the use of enhanced technologies. Section 259-c of the Executive Law would also be amended to allow the Parole Board to utilize a risk and needs assessment in determining which inmates may be released to parole supervision.

Parolees leaving State prison are confronted with several obstacles to their re-integration back into the community. These barriers make it difficult for parolees to secure a job, obtain supportive assistance, and avoid being permanently labeled as an offender or a danger to society. Executive Law § 296 would be amended to establish that individuals are not required to divulge information about arrests or prosecutions terminated in favor of the accused, youthful offender adjudications and sealed violations. This provision will especially aid job applicants.

Budget Implications:

Enactment of this bill during the 2009-10 Executive Budget will result in a portion of the savings of $11 million for SFY 09-10 and an annualized savings of $44 million.

Effective Date:

This bill takes effect March 1, 2009.

Part O – Credit probation sentences for time served under interim supervision; and implement a one-time $25 probation registration fee with the revenue to be retained by local probation departments

Purpose:

This bill amends the Interim Probation Supervision (IPS) Law to credit individuals’ final probation sentences for the time served under successful IPS; and establishes a one-time probation registration fee.

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

This bill credits probation sentences for time successfully served under IPS. IPS is a trial probation period that assists prosecutors and the courts in determining whether a defendant who is at risk of incarceration would be suitable for a probation sentence. When a court orders a period of IPS, it may adjourn the sentencing for up to one year, during which time it can assess the defendant's prospects of success if sentenced to a term of probation supervision.

When the court subsequently sentences a defendant to probation, it is reasonable that the period of probation should be reduced by the period of time that the defendant satisfactory complied with the interim probation supervision. This bill would allow interim probationers to receive such credit, which would provide them with an incentive to comply with the interim probation conditions, and deter volatile behavior while the defendant is under IPS.

This provision also addresses management issues that probation departments face in handling over 3,000 IPS cases. It will allow certain statutory provisions that apply to those under probation supervision to apply to those on interim probation.

This bill also mandates a $25 fee for adult probationers registering with the Statewide Integrated Probation Registrant System (I-PRS). This one-time fee, which may not be imposed as a condition of probation, would be used to support local probation departments.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget because the one-time $25 probation registration fee collected by the City of New York and county probation departments would generate approximately $1 million in revenue each year to support their costs. Allowing defendants to receive credit for time served under the period of successful IPS towards any probation sentence that is subsequently imposed is expected to reduce probation officer workload. This new revenue stream and the interim probation credit, which would reduce probation officers’ caseloads, would help to offset the six percent reduction to county probation departments that is recommended as part of the 2009-10 Executive Budget.

Effective Date:

The probation registration fee will be applied immediately and will be deemed to have been in full force and effect on and after March 1, 2009. The section related to interim probation will take effect on the sixtieth day after it becomes a law. However, a defendant serving a sentence of probation supervision on the date this act becomes effective, may, at the discretion of the court having legal custody of the defendant, have his or her probation sentence credited with any period of interim probation supervision that he or she satisfactorily completed prior to the imposition of that probation sentence.

Part P – Eliminate Batterers Project funding administered by the Office for the Prevention of Domestic Violence

Purpose:

This bill will eliminate Batterers Program funding.

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

The Batterers Project was established in 1992 as a pilot pursuant to statute. Under this program, the Office for the Prevention of Domestic Violence (OPDV) distributes $210,000 in local assistance funds to up to five programs that provide battering prevention and educational services with the goal of helping clients to end abusive behaviors. Since the State program was established, more research has been done in this emerging field which indicates that such programs do not effectively or consistently reduce domestic violence.

While the State supports ongoing efforts to identify successful strategies for reducing batterer recidivism, it cannot continue to fund programs in the absence of empirical support of their meaningful success. Eliminating financial support for programs that do not consistently demonstrate successful outcomes is in the public interest, and in this case will better align State resources with the mission of the Office for the Prevention of Domestic Violence. OPDV will continue to participate in the identification of promising practices for the reduction of recidivism and the prevention of domestic violence.

This bill repeals Section 576 of the Executive Law thereby eliminating the Batterer’s Project and its funding of the batterers program.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget, providing $52,000 in 2009-10 savings, and $210,000 thereafter.

Effective Date:

This bill takes effect April 1, 2009.

Part Q – Modify the responsibilities of the State Commission of Correction and provide options to administrators of local jails to reduce their operating costs

Purpose:

This bill limits the State Commission of Correction's (SCOC’s) mandates in order for the Agency to perform more effectively its core responsibilities with regard to the oversight of State and local correctional facilities. Additionally, the bill will provide county jails with options to reduce their operating costs.

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

A recent Comptroller’s audit revealed several areas where SCOC has fallen short of its statutory mandate. For many years, SCOC’s primary focus has been the oversight of local correctional facilities, including mandating the creation or expansion of local jails, often raising significant fiscal concerns for counties.

While SCOC has constitutional and statutory authority to visit, inspect and appraise the management of correctional facilities with regard to security and safety, this bill will provide that routine SCOC oversight will not be necessary if either a Department of Correctional Services or a local correctional facility is accredited by the American Correctional Association. SCOC will retain the right to visit, inspect and appraise such facilities if it has reason to believe the facility is not meeting accreditation standards or if the health, safety and security of staff or inmates is being jeopardized. This bill also preserves SCOC oversight of Office of Children and Family Services secure facilities.

In order to create operational efficiencies, several of SCOC’s functions will be eliminated, limited or transferred to the Division of Criminal Justice Services (DCJS). First, the Municipal Police Training Council and DCJS will assume responsibility for establishing and overseeing a basic correctional training program for personnel employed by correctional facilities. Second, SCOC’s data analysis obligation will be eliminated, because for many years it has been handled by DCJS. Third, SCOC will now only provide the rules and regulations establishing the minimum standards for the review of the construction or improvement of correctional facilities and will only approve or reject plans for the construction or improvement of correctional facilities that directly affect the health, safety, and security of staff and inmates. It will not be necessary for SCOC to approve more minor construction or improvement projects.

To assist local correctional facilities to operate more safely and efficiently, the bill will implement a proposal recently advanced by Chief Judge Judith S. Kaye in her 2008 State of the Judiciary Report. It will allow a judge in any criminal case in any county to dispense with the need for a personal appearance by a defendant, except for an appearance at a hearing or trial, and instead allow the defendant to appear electronically. This will allow counties to save on transportation and personnel costs, and will enhance security and lower the risks of escapes.

Finally, the bill will clarify the circumstances when the Commissioner of DOCS can exercise his or her discretion to accept inmates from local facilities that have become unfit or unsafe for the confinement of some or all of the inmates, including specifying that DOCS can accept such inmates if a local facility is unable to provide one or more inmates with essential services such as medical care. If the Commissioner of DOCS accepts these inmates, the bill gives the Commissioner the discretion to determine whether or not a county shall reimburse the State for any or all of the actual costs of confinement, subject only to the approval of the Director of the Budget.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget because it will avoid costs and allow SCOC to operate within the same level that they have been doing for the last decade.

Effective Date:

This takes effect immediately, provided, however, that the sections 2, 4, 5 and 6 of this bill relating to the transfer of the training function shall take effect 180 days after they shall have become a law.

Part R – Increase the assessment on nuclear power plant facilities to support emergency preparedness planning efforts

Purpose:

This bill increases the fee paid by nuclear electricity-generating facility operators to support radiological emergency preparedness activities.

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

This bill amends Executive Law section 29-c (2)(b) to increase the annual fee paid by the State’s nuclear facility operators from $550,000 to $1 million per reactor. This fee will be applied to each of the State’s six nuclear reactors and will be divided between the State and certain localities pursuant to existing statute.

This fee was first established in 1981 at the rate of $250,000 per reactor. The fee was increased to its current rate in 1994.

Concerns regarding natural and man-made disasters have grown in recent years, resulting in a dramatic increase in emergency preparedness planning and security activities by both the State and affected localities. This bill would offset a greater share of local emergency preparedness costs, as the responsibility for protecting those who live and work near nuclear reactors continues to grow in scope and urgency.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget. This bill generates $2.7 million in additional revenue, with 50 percent ($1.35 million) divided amongst the coalition of nuclear counties (Monroe, Orange, Oswego, Putnam, Rockland, Wayne and Westchester). The other 50 percent ($1.35 million) will be transferred from the Emergency Management Account to the General Fund.

Effective Date:

This bill takes effect April 1, 2009.

Part S – Establish a program for photo-monitoring enforcement of speed limits in work zones and designated stretches of highway

Purpose:

This bill establishes a program for photo-monitoring enforcement of speed limits in work zones and designated stretches of highway.

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

This bill authorizes the Division of State Police to implement a program utilizing automated photo-monitoring equipment for the purpose of imposing a monetary penalty on the registered owners of vehicles that have been documented exceeding the posted speed in work zones and designated stretches of State highways. There will be 60 cameras in use, with 50 being placed in work zones and 10 on designated stretches of highway. Signs alerting motorists to the presence of photo-monitoring devices will be posted approximately 300 yards before the work zone and speed zones.

A $100 monetary penalty will be imposed upon the registered owner of the vehicle found to be in violation of speed limit in work zones and $50 monetary penalty for those found to be in violation of speed limit in designated stretches of highway. Registered owners found liable for violations of the provisions of this bill will not be deemed convicted as an operator, and will not be assessed points against their driver’s license, nor be subject to increased automobile insurance premiums. Adjudication of contested violations will be accomplished by a process established by the Division of Criminal Justice Services. Also, the Department of Motor Vehicles will be authorized to deny renewal and/or suspend the registration of owners who repeatedly fail to respond to a Notice of Violation or who refuse to pay the fine.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget because it improves public safety while generating approximately $42 million in net revenue in 2009-10, and $84 million when fully annualized.

Effective Date:

This bill takes effect immediately.

Part T – Increase the Motor Vehicle Law Enforcement fee applied to the purchase of vehicle insurance to support the cost of state police operations

Purpose:

This bill raises the Motor Vehicle Law enforcement fee from $5 to $10 dollars. It also makes permanent the fee and related programs that would otherwise expire in 2009.

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

This bill increases the fee from $5 to $10 dollars, and dedicates $4.7 million annually to the Motor Vehicle Theft and Insurance Fraud Prevention Fund and the remaining balance to the State Police Motor Vehicle Law Enforcement Account. This fee was last increased from $1 to $5 dollars in FY 2003.

This bill also makes technical amendments to the Insurance Law and State Finance Law to simplify the flow of these revenues into dedicated State accounts and eliminates the requirement that the Superintendent of Insurance distinguish between fees collected from passenger and commercial vehicle policies.

The bill also makes permanent all provisions related to the Motor Vehicle Law Enforcement Account, as well as the New York Motor Vehicle Theft and Insurance Fraud Prevention Program and related provisions.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget as it will generate $48.4 million in additional revenue and $65.5 when fully annualized. This bill is necessary to support the proposed budget for the Division of State Police.

Effective Date:

This bill takes effect March 1, 2009 except that the fee increase takes effect June 1, 2009.

Part U – Extend various criminal justice programs that would otherwise sunset

Purpose:

This bill extends for five years various criminal justice programs that would otherwise expire in 2009 and 2010. It also makes permanent statutes related to medical parole and merit termination of parole.

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

This bill extends the authorization of various sections of law to ensure the continuation of criminal justice programs.

Key programs and statutory provisions continued by this bill include: determinate sentencing ; inmate work release and furlough; provisions related to substance abuse treatment for inmates; alternatives to incarceration; ignition interlock program for those convicted of alcohol-related violations; mandatory arrest in cases of domestic violence; protective measures for child witnesses; and transfer of adult offenders between states.

This bill also makes permanent certain statutory provisions related to medical parole and merit termination of parole.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget which relies on continuation of these programs to support the Financial Plan projections.

Effective Date:

This bill takes effect immediately.

Part V – Abolish the State Employment Relations Board and shift responsibilities to the Public Employment Relations Board

Purpose:

This bill abolishes the State Employment Relations Board (SERB) and expand the responsibilities of the Public Employment Relations Board (PERB) for providing labor mediation and other services for public employers and their employee unions to include the private sector.

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

Abolishing the State Employment Relations Board (SERB) and transferring its responsibilities to the Public Employment Relations Board (PERB) will create a single entity with an appropriately broad policy perspective in the critical area of labor relations and responsibility for assisting both the public and private sectors in resolving labor impasses. Further, the volume of union certifications and improper practice charges filed with SERB is extremely limited, and its resources are therefore underutilized. As a result, the merger will generate economies of scale and eliminate duplicative efforts that will generate $1,700,000 in annual savings.

This bill amends the Civil Service Law, the Labor Law and the Executive Law to abolish SERB and shift responsibilities related to the private sector and the Indian Nations to PERB.

PERB, established in Article 14 of the Civil Service Law, is currently charged with assisting State and local governments and public employee unions in resolving labor impasses by providing mediation services. The Board also certifies unions and reviews improper labor practices. SERB, created by Article 20 of the Labor Law, provides mediation and related services to private employers and their unions, and certifies unions and resolves improper labor practices that do not fall within the jurisdiction of the National Labor Relations Board.

Proposals to merge SERB into PERB have been proposed several times in the past, most recently as part of the 2006-07 Executive Budget.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget, which includes savings of $1,700,000 resulting from the abolition of SERB.

Effective Date:

This bill takes effect 30 days after enactment.

Part W – Establish the Office of Procurement Services to ensure that the state is undertaking procurement consistent with best practices to receive the maximum value at the lowest possible cost

Purpose:

This bill creates the Office of Procurement Services, a new Executive agency, to improve the State's ability to generate savings by making more strategic procurement decisions.

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

This new bill amends the Executive Law and adds a new Article 4-B. This article creates the Office for Procurement Services and establishes the position and duties of the State's Chief Procurement Officer to lead this new agency. It enumerates the functions, powers and duties of the office and it also addresses the transfer process and employee rights for those who may be affected by the creation of this agency.

This bill amends the State Finance Law, primarily the Procurement Stewardship Act, to transfer authority for the State's procurement function from the Commissioner of General Services to the Chief Procurement Officer. In addition, it changes pertinent Office of General Services statutory references to the Office for Procurement Services.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget. While this bill will not generate significant savings in this budget year, it is expected that once this agency is fully operational, its efforts will reap future savings by improving overall State procurement practices and fostering statewide efficiencies and economies of scale.

Effective Date:

This bill takes effect immediately.

Part X – Modify the maintenance-of-effort (MOE) requirement for counties and the City of New York to receive funds from the Indigent Legal Services Fund and the formula for distribution of such funds

Purpose:

This bill ensures that counties and the City of New York do not forfeit all allocations from the Indigent Legal Services Fund in the event that they are unable to meet the stringent maintenance of effort (MOE) requirements set in current law.

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

The Indigent Legal Services Fund (ILSF) is a dedicated fund, which provides support to counties and the City of New York for the cost of indigent defense services. The ILSF was created in 2003, as defined in Section 98-b of the State Finance Law. The first distribution of funds occurred in March 2005.

In 2007 three counties did not receive any funds from the ILSF, which led to substitute funding being provided from the General Fund as part of the 2007-08 enacted budget. In 2008, nine counties had not met the MOE requirement as of the statutory date for distribution of ILSF funds, which led to enactment of two bills. Statute held certain ILSF funds, attributable to those nine counties, in temporary reserve while allocations were made to the other counties and the City of New York; and modified the MOE test and the fund distribution formula, but only for distributions from the ILSF made in 2008.

This bill includes similar provisions, but would make them permanent. These provisions establish a less stringent MOE requirement and provide for a reduced award, but not a complete elimination of funding from the ILSF in the event that a county does not meet the MOE requirement.

Under this bill, the Office of the State Comptroller (OSC) would consider the MOE to be met in circumstances where a county’s expenditures for indigent legal services during the calendar year was greater than the average expenditure for such services over the preceding three calendar years. Averaging three years of spending to determine the “base” used to measure whether a county has maintained the level of local funding would serve to smooth out the effect of significant swings in spending driven by caseload.

In the event that a county or the City is unable to comply with the MOE requirement, it would nonetheless receive an allocation from the ILSF, but in an amount that has been reduced in proportion to the county’s MOE shortfall.

Further, this bill allows OSC to make adjustments in ILSF payments to account for audit findings regarding local spending on indigent legal services.

Budget Implications:

This proposal is cost neutral for the State, but provides for an alternative distribution of funds from the ILSF to counties and the City of New York for the cost of providing indigent legal services – one which ensures each county receives some benefit, in order to better protect the provision of indigent legal services.

Effective Date:

This bill takes effect March 1, 2009.

Part Y – Provide the New York State Health Insurance Program the option to operate as a self-insured plan

Purpose:

This bill would amend Civil Service Law to insert language that would allow the New York State Employee Health Insurance Plan (NYSHIP) to operate as a self insured plan.

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

This bill would allow the State the option to be self insured for a variety of employee health benefits. Currently, the State contracts with licensed insurance companies for various health benefits, pays all necessary risk charges associated with having insurance. The insurance carriers also pay specialty taxes and insurance assessments which they, in turn, pass along to the State as charges.

Even though the State pays such risk charges and reimbursements for tax assessments, NYSHIP, for all practical purposes, functions like a self insured plan. Regardless of the premium paid, the State pays the actual billed costs of health benefits. Therefore, the insurance carriers incur a very minimal amount of actual risk, but benefit from risk fees charged to the State. The language change proposed in this bill would not require the State to change the current practice; it simply would give NYSHIP flexibility of choice going forward. Giving the State more choices would create a more competitive environment among the current insurers and would also broaden the field of competition by allowing third party administrators to bid on contracts.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget. This bill would afford the State more flexibility to enter into contracts for employee health benefits that are in the financial interests of the State and local governments which participate in the Empire Plan.

Effective Date:

This bill takes effect March 1, 2009.

Part Z – Establish a sliding scale for retiree health insurance premium contributions for future state retirees

Purpose:

This bill would reduce the State's share of health insurance premium contributions for certain prospective State retirees and their dependents.

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

This bill would require employees retiring on or after 30 days from enactment of the bill to make health insurance premium contributions, on a sliding scale, based upon years of service at the time of retirement. The State would pay a minimum premium share of 50 percent for individual coverage and 35 percent for dependent coverage for employees who retire with 10 years of service. The State's contribution would increase by 2 percent of premium for each additional year of service up to a maximum contribution of 90 percent for individual coverage and 75 percent for dependent coverage for employees who retire with 30 or more years of service. The bill would make parallel adjustments in the contributions for employees who die prior to retirement, and dependents of such employees and of employees who die after they retire.

Currently, the State provides a premium contribution of 90 percent for individual coverage or 75 percent for dependent coverage for every post 1983 retiree with at least 10 years of service. In addition, employees may apply up to 1,500 hours of unused sick leave as a credit to offset their premium contribution. This application of sick leave credit can increase the State's contribution beyond 90 percent and even up to 100 percent, depending

The State pays the full premium contribution for pre-1983 retirees for individual coverage and approximately 94% for family coverage.

Modifying contributions for future retirees is of great importance given the current financial crisis, and will help to make the significant financial burden of retiree health benefits more affordable for the State. At the same time, State contributions will still be sufficient to insure that retirees continue to receive affordable health coverage, and those with long years of service to the State will experience no increase in their payments at all. Retiree health coverage currently accounts for 39 percent of the State's annual spending for employee health insurance premiums. Presently, the State's coverage is uniformly generous to all employees and retirees; it provides the same level of premium coverage whether an employee has worked for the State for 10 years or 30 years.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget. The State will save an estimated $8 million in 2009-10 and $17 million in 2010-11.

Effective Date:

This bill takes effect 30 days after enactment.

Part AA – Require state employees and retirees to contribute to Medicare Part B premiums

Purpose:

This bill would incorporate the Medicare B premium costs into the overall cost of the Empire Plan and HMOs shared by the State, as employer and State employees and retirees.

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

This bill would recognize Medicare Part B premium costs as an appropriate cost of the Empire Plan and HMO employee/retiree health coverage. The State will continue the current practice of fully reimbursing retirees through pension payments for Medicare Part B premiums deducted from social security checks.

Medicare was established in 1965 as a two-part program. Part A provides insurance coverage of inpatient hospital care. Part B provides coverage for physician services both in and out of the hospital. Medicare benefits are available to individuals over age 65. Most senior citizens pay a monthly premium in order to receive Part B benefits. The State reimbursed retired State employees $96 a month for their Medicare Part B premiums in fiscal year 2008 -09 ($134 million annually).

New York State is among only 6 states that reimburse a portion of Medicare Part B premiums. The Empire Plan has benefited from the Federal Medicare reimbursements to physicians resulting in billions in savings - - costs which would have otherwise been incurred by the State, employees and retirees. Under this bill both employees and retirees will pay a portion of Medicare Part B premiums (i.e., 10 percent for individual coverage and 25 percent for dependent coverage) consistent with the longstanding arrangement for Empire Plan health insurance premiums. By blending the Medicare Part B premium costs into the much larger Empire Plan and HMO premium calculations, approximately 14 percent of the costs will be recouped from both State employees and retirees. Employee/retiree health insurance contributions will increase by approximately $20 - $30 a year for individual coverage and $80 a year for family coverage.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget. The State will save an estimated $2.5 million in 2008-09 and $30 million in 2009-10.

Effective Date:

This bill takes effect March 1, 2009.

Part BB – Eliminate the general salary increases scheduled on or after April 1, 2009 provided for in collective bargaining agreements, interest arbitration awards, and for M/C employees

Purpose:

This bill would eliminate the general salary increases scheduled on or after April 1, 2009 for State employees provided for by collective bargaining agreements, as well as the increase for Management/Confidential employees set forth in Chapter 10 of the Laws of 2008.

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

As set forth in the legislative findings accompanying this bill, the State faces a severe fiscal crisis, which cannot be resolved absent extraordinary measures to control spending. To that end, this bill would eliminate the pay increases for State employees that would otherwise take effect on or after April 1, 2009, pursuant to collective bargaining agreements, interest arbitration awards and legislation providing the terms of employment for management/confidential employees. This step is necessary to achieve a balanced budget while avoiding massive layoffs and the continuation of important state services.

This bill would go into effect, notwithstanding collective bargaining agreements for unions that have reached agreement with the State, to impose a freeze on general salary increases on or after April 1, 2009.

Current collective bargaining agreements provide for general salary increases, some of which are codified in Chapters 10, 49, 113, 114, 219 and 287 of the Laws of 2008. This is a new bill.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget. The State will save an estimated $122 million General Fund ($332 million All Funds) in 2009-10 and in the out-years.

Effective Date:

This bill takes effect immediately.

Part CC – Implement a Tier 5 pension benefit for newly hired state and local government employees

Purpose:

This bill would amend the Retirement and Social Security Law, the General Municipal Law, and the Education Law to implement a Tier 5 pension benefit for newly hired State and local government employees. This bill would affect future members of the New York State and Local Employees’ Retirement System (ERS), the New York State Teachers’ Retirement System (TRS), the New York City Employees’ Retirement System (NYCERS), the New York City Teachers’ Retirement System (NYCTRS), the New York City Board of Education Retirement System (NYCBERS) and the New York State and City Optional Retirement Program (ORP). The changes proposed in this bill would not affect existing employees or future members of the New York State and Local Police and Fire Retirement System, the New York City Police Pension Fund, or the New York City Fire Pension Fund.

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

At a time when both the State and local governments are facing significant fiscal pressures, it is imperative that the State find new ways in which it can achieve cost savings. Because pension costs impose such a significant burden on the State and other public employers, implementing a new and less costly tier of pension benefits for newly hired employees will begin to yield immediate savings, without impairing the expectations of existing employees. The tier proposed in this bill is fully consistent with the State’s interest in providing for its retirees. Indeed, many of the provisions in this bill re-implement provisions of the Tier 4 pension benefit originally enacted in 1983.

The new Tier 5 provisions would require future members of ERS and TRS to: reach age 62 before becoming eligible to draw a pension benefit; make three percent employee contributions for the duration of their employment; have 10 years of credited service before qualifying for a vested pension benefit; and reach 25 years of service before the multiplier used to calculate pension allowances is increased from one-sixtieth to one-fiftieth of final average salary times years of credited service. The bill would also lower the amount of sick leave allowed to be used for additional service credit from the 200 days presently allowed for most State employees to 165 days for eligible employees, and exclude overtime payments from the final average salary (FAS) calculation used to determine pension allowances.

Future members of NYCERS and NYCTRS would be required to make employee contributions for the duration of their employment, and have 10 years of credited service before qualifying for a vested pension benefit. Overtime payments would also be excluded for the FAS calculation for NYCERS and NYCTRS members.

Future members of the State and New York City ORP would be required to make three percent employee contributions throughout their service.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget. This proposal is expected to yield $10 million in savings to the State in 2009-10 and $30 million in 2010-11.

Effective Date:

This bill takes effect March 1, 2009.

Part DD – Authorize a new tier of pension benefits for newly hired New York City uniformed employees, submitted at the request of the Mayor

Purpose:

This bill is advanced at the request of the Mayor of the City of New York, and will not be acted upon without a Home Rule message from the New York City Council. It would amend the Retirement and Social Security Law and the New York City Administrative Code to establish a modified pension plan for certain members of the New York City uniformed forces who become pension plan members after the enactment of the bill. The bill would apply to future New York City police officers, firefighters, uniformed correction officers and uniformed sanitation members.

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

The revised pension plan proposed in this bill will provide for greater employee contributions to the retirement system, while ensuring a valuable retirement benefit for new employees affected by this bill. It will also establish pension benefit uniformity among new employees in the New York City Uniformed Services. This will reduce future costs to taxpayers, ensure the future stability of the retirement fund, and with other comparable systems around the country.

The current retirement benefits for New York City Uniformed Services (Police and Fire, Corrections and Sanitation) are provided at 20 years of service regardless of the age of the employee. The current benefit structure results in the loss of many talented uniformed service employees at a young age. Under the proposed tier, uniform services would receive the full benefit after 25 years of service rather than 20, at a minimum retirement age of 50, and would be vested after 10 years of service rather than 5, thereby ensuring longer service of these essential employees.

The costs of the current plan retirement benefit are significant, and have grown rapidly over the past decade. This proposal would continue to ensure a valuable pension benefit for future employees, while balancing New York City’s ability to pay. Requiring members to make contributions for the first 25 years of their service while basing their benefit on a three-year final average salary ensure that new employees will provide sound financial underpinnings for their future benefits. These changes are consistent with the types of plans offered in other large states and cities across the nation.

In general, New York City uniformed force members currently may retire after 20 years of service without regard to age, with an unreduced retirement allowance of 50% of salary for the first 20 years of service. Police, fire and uniformed correction retirees receive an additional benefit of 1/60^th of salary for each year of service after the first 20 years, while uniformed sanitation retirees receive an additional 1.5% of salary for each year of service after the first 20 years. Police and fire members who retire for service after at least 20 years of service also receive a City-guaranteed non-pension variable supplements fund (VSF) benefit equal to $12,000 per year. Uniformed correction service retirees currently have a non-guaranteed VSF benefit which is paid only in those years when there is a sufficient amount in the VSF fund to pay each eligible retiree the full amount of the $12,000 annual benefit.

Under the bill, future New York City uniformed force members would need to be at least 50 years of age and have 25 years of uniformed force service in order to retire for service with immediate payability of an unreduced retirement allowance equal to 2% of salary for each year of credited service. The early service retirement provisions of the bill would permit members to retire after 20 years of service without regard to age, and receive immediate payability of a reduced retirement allowance which would be based on that same formula, but which would be reduced by 5% for each year that the member’s retirement precedes the age 50 and 25-year point. The bill would eliminate the one-year final average salary for future police and fire members, and provide for a three-year final average salary for all future uniformed force members. The bill also would make future uniformed force members ineligible for VSF benefits, and the permanent cost of living allowance enacted by Chapter 125 of the Laws of 2000.

The bill also would impact vesting requirements and benefits for new uniformed force members. Currently, uniformed force members who resign with at least 5 years of uniformed force service are entitled to a vested benefit equal to 2.5% of salary for each year of service. That benefit becomes payable at the point where the member could have retired with 20 years of service if he or she had remained in service. The bill would require at least 10 years of uniformed force service for vesting eligibility, and the vested benefit of 2% of salary would not become payable until age 65.

The bill also would change the member contribution rates for new members. Currently, the member contribution rate for police and fire members is determined by an actuarial calculation that is based on the member’s age at the time of becoming a member. Uniformed correction and sanitation members, in addition to making the basic 3% of salary member contributions for the first 10 years, make additional member contributions in accordance with the provisions of their 20-year plan. Persons who have become correction officers since October 19, 2004 are required to make additional member contributions at the rate of 4.61% of salary for the first 20 years of service, while the additional member contribution rate for uniformed sanitation members currently is 5.35% of salary for the first 20 years of service. In lieu of the current member contributions and additional member contributions, the bill would require all new uniformed force members to contribute 5% of their salary until they have 25 years of uniformed force service.

This is a new bill.

Budget Implications:

This bill would result in savings to New York City of approximately $25 million in the year after enactment. Savings would increase by approximately $25 million per year as new employees are hired, such that the annual savings will be $500 million in 20 years.

Effective Date:

This bill takes effect immediately.

Part EE – Implement an additional 5-day pay deferral for all state employees

Purpose:

This bill would implement an additional 5-day pay deferral for all employees, achieved through a 10 percent reduction in salary per paycheck for five payroll periods. The additional deferral would be payable when an employee retires or otherwise separates from State service, or on April 1, 2011 unless the Director of Budget finds, on an annual basis, that continuation is necessary to address exigent financial circumstances.

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

The State faces a severe fiscal crisis, which cannot be resolved absent extraordinary measures to control spending. To that end, this bill would defer 5 days of salary for all State employees until an employee retires or otherwise separates from State service or on April 1, 2011, unless the Director of Budget finds, on an annual basis, that continuation is necessary to address exigent financial circumstances. Implementing this salary deferral would impact all employees and can be administered relatively easily. Moreover, many employees would ultimately realize more money than was deferred, since payment following the deferral would be based on the employee’s salary rate at the time of payment, and cannot be less than the salary deferred.

This bill would amend State Finance Law to subject all employees in the Executive Branch and the State’s statutory or contract colleges to an additional five-day pay deferral, and would provide an option to the unified court system and legislature to participate in such deferral, or to identify other comparable savings. For each of five payroll periods, commencing as soon as administratively feasible after enactment of this bill, 10 percent of an employee’s biweekly salary will be deferred until an employee retires or otherwise separates from State service, or until withholding terminates. At the time of separation or termination of the withholding, the employee is entitled to a lump sum payment based upon the rate of basic annual salary in effect at the time of separation. In no event will the lump sum payment be less than the amount of salary originally withheld.

Under Chapter 947 of the Laws of 1990, current and future employees are subject to a five-day pay deferral.

Budget Implications:

Enactment of this bill is necessary to implement the Executive Budget. The State will save an estimated $121 million General Fund ($264 million All Funds) in 2009-10.

Effective Date:

This bill takes effect immediately and expires March 31, 2010.

Part FF – Reduce state payments in lieu of taxes and freeze payments for taxes on state owned lands

Purpose:

This bill would amend Public Lands Law and Real Property Tax Law to reduce State payments in lieu of taxes (PILOTs) and freeze payments for taxes on State owned lands.

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

The State is facing unprecedented fiscal challenges. Many areas of the State budget that have thus far been left untouched must now undergo cuts in order to help close the budget deficit. Such areas include the various programs in the General State Charges budget that provide for payments to local governments pursuant to various sections of the Public Lands Law and the Real Property Tax Law.

Commensurate with the reduction applied to many other local assistance programs, this bill amends the Real Property Tax Law to freeze payments for taxes on State owned lands at the level paid during State fiscal year 2008-09. It also amends various sections of the Public Lands Law to reduce payments in lieu of taxes by six percent from their scheduled amount.

Section 1 of the bill amends Real Property Tax Law §544, to provide that all future payments made by the State pursuant to Article 5 of the Real Property Tax Law shall be equal to the amount paid during State fiscal year 2008-09. For lands acquired by the State after April 1, 2009 or during State fiscal year 2008-09 after the taxable status date of such lands, the payments made by the State shall be no greater than the tax owed on such lands during the year in which they were initially taxable pursuant to Article 5 of Real Property Tax Law.

Section 2 of the bill amends Public Lands Law §19 to permanently reduce payments to localities made pursuant to the section by six percent.

Section 3 of the bill amends Public Lands Law §19-A to permanently reduce payments to the City of Albany made pursuant to the section by six percent. This section amends both subdivision 2 of the section, which details payments made by the State according to the traditional Public Lands Law § 19-A formula, and subdivision 2-a, which explicitly specifies the amount of the PILOT to be paid by the State for the Empire State Plaza.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget. It is estimated to yield $8.5M of savings in 2009-10.

Effective Date:

This bill takes effect March 1, 2009, except that section one takes effect April 1, 2009.

Part GG – Modify the Aid and Incentives for Municipalities (AIM) Program

Purpose:

This bill amends the Aid and Incentives for Municipalities (AIM) Program to implement necessary cost savings measures that rescind aid increases scheduled for municipalities outside of New York City and eliminate AIM funding for New York City.

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

This bill amends State Finance Law §54 and Part O of Chapter 56 of the Laws of 2008 §11, which authorize the AIM Program and related payment advances, to accomplish the following:

Eliminate the aid increases for municipalities outside the City of New York that are currently authorized in law for the next two years, generating savings of $61million in SFY 2009-10 and $130 million in SFY 2010-11. Even after this action, the State will maintain $755 million in aid for these municipalities – an increase of $290 million (62 percent) since 2004-05. This substantial growth in funding, combined with new mandate relief and revenue alternatives advanced in the SFY 2009-10 Executive Budget, provides sufficient financial footing for cities, towns and villages to manage with AIM funding kept at SFY 2008-09 payment levels;
Preserve the current-law requirement that cities, as well as villages meeting all four fiscal distress indicators under the AIM Program, must develop multi-year financial plans;
Eliminate aid to the City of New York under the AIM Program starting in SFY 2009-10, generating $328 million in annual savings. New York City has a much wider range of revenue sources available to support its operations compared to other municipalities and its reliance on AIM (0.5 percent of total revenues) is far less than other cities (18 percent of total revenues on average). Moreover, a package of mandate relief and revenue alternatives are proposed with the Executive Budget to help offset this reduction; and
Simplify the municipal merger incentives offered under the Local Government Efficiency Grant Program, which is appropriated under AIM. This proposal eliminates two merger incentive options that always provide less aid to municipalities over the long term than the other option, which awards municipalities participating in a consolidation or dissolution additional aid equal to 15 percent of their combined property tax levy, subject to a cap of $1 million. The proposal also specifically addresses the calculation and allocation of this incentive in cases where one village dissolves into multiple towns.
Expand eligibility for Local Government Efficiency Grants to include association libraries, municipal public libraries and school district public libraries. Currently, library districts are the only type of library that may apply for grants under the program.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget because it will authorize a total of $389 million in savings compared to current law.

Effective Date:

This bill takes effect March 1, 2009.

Part HH – Provide mandate relief for local governments

Purpose:

This bill will facilitate local government cost saving efforts by providing relief from certain State mandates.

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

This bill facilitates local government cost saving efforts by providing relief from a number of burdensome state mandates. Specifically, this bill:

revises multiple bidding requirements (the Wicks Law) for the State, municipalities, school districts and public authorities for a five-year period. Earlier this year, legislation was enacted which increased the multiple bidding thresholds ($3 million in New York City, $1.5 million in Nassau, Suffolk and Westchester counties, and $500,000 for Upstate counties), provided subcontractor protections, and allowed localities to avoid the Wicks Law limitations altogether by entering into Project Labor Agreements (PLAs). While maintaining these protections, this proposed legislation is necessary in light of the current fiscal crisis, to further reduce the cost of State and local construction projects. Specifically, the bill would raise the multiple bidding thresholds in New York City to $10 million, exempt school construction from these thresholds altogether (including the NYC School Construction Fund), and remove apprenticeship requirements from the PLA provisions. In addition, the New York City School Construction Authority’s Wicks exemption is extended until 2014.
provides local governments with more contracting flexibility by increasing local competitive bidding thresholds, allowing for contracts to be awarded by “best value,” and allowing for “piggybacking” on certain contracts.
reforms collateral source offsets in personal injury and wrongful death actions against local governments and the State. This will ensure public employers are treated the same as private employers in such actions. New York City estimates that it will save $14.5 million annually from this reform.
sets the interest rate paid on judgments against local governments and the State at market rates with a nine percent cap, rather than the existing nine percent interest rate maximum.
unifies the Transitional Finance Authority’s (TFA) statutory bonding authority with New York City’s general obligation (GO) debt limit by providing that TFA debt issued above the current $13.5 billion statutory cap will count against the City’s available GO debt limit, change TFA’s statutory cap calculation from bonds issued to bonds outstanding, and apply TFA’s current 20 percent variable rate bond cap to the unified cap/debt limit under this new structure.
allows New York City to issue bond anticipation notes (BANs) with a longer maturity period.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget because it will provide fiscal relief and increased operational flexibility for local governments.

Effective Date:

This bill takes effect immediately, except sections 1 through 12 will control all contracts 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, and will expire five years from such effective date, except for sections 8 and 12. Sections 13 through 16 will apply to all actions and proceedings pending on or commenced on or after such date except that it shall not apply to trials or settlements that occurred prior to such effective date. The amendments to section 1735 of the public authorities law made by section 8 and section 103 of the general municipal law made by section 21 of this act shall not affect the expiration of such sections and shall expire and be deemed repealed therewith.

Part II – Extend authorization for the Office of Real Property Services to charge oil and natural gas producers for determining the property value of oil and gas units of production

Purpose:

This bill extends the schedule of fees charged to oil and natural gas producers, which support costs of the Office of Real Property Services in determining the property value of oil and gas production.

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

This bill amends Chapter 540 of the Laws of 1992, which established a schedule of fees under Real Property Tax Law §593 that are charged to oil and natural gas producers to reimburse the Office of Real Property Services for developing a uniform, statewide assessment of oil and gas production values that are used in property tax assessments. The authority to charge such fees is extended from March 31, 2009 to March 31, 2012.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget because it authorizes an estimated $43,000 in fees that are dedicated to support operations of the Office of Real Property Services.

Effective Date:

This bill takes effect March 1, 2009.

Part JJ – Increase the real property transfer fees that support expenses of the Office of Real Property Services, and redirect the deposit of these fees to the General Fund

Purpose:

This bill addresses an accumulated deficit in funding for the Office of Real Property Services by increasing the real property transfer fee that is used to support agency operations.

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

This bill amends Real Property Tax Law §333, which authorizes a real property transfer fee that is paid whenever a deed is recorded, to increase such fee from $50 to $100 for housing cooperatives, from $75 to $125 for residential or farm property, and from $165 to $250 for commercial property. The county that collects the fee retains $9, and the remainder is dedicated to support expenses of the Office of Real Property Services currently funded in the Improvement of Real Property Tax Administration Account. Higher fees are necessary to address an accumulated account deficit that is projected to total $15 million by the end of SFY 2008-09.

Beginning in SFY 2009-10, the State’s share of revenue from real property transfer fees will be redirected to the General Fund. The 2009-10 Executive Budget proposes to discontinue use of the Improvement of Real Property Tax Administration Account and instead support expenses of the Office of Real Property Services directly from the General Fund. This change is necessary to provide greater stability to the funding of agency operations.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget, as the increases in real property transfer fees will enable the State to address an accumulated deficit in funding for the Office of Real Property Services by raising an estimated $14 million in SFY 2009-10 and $19 million in future-year annual revenue. The redirection of real property transfer fee revenue to the General Fund is consistent with proposed changes in appropriations for the Office of Real Property Services.

Effective Date:

This bill takes effect immediately, with the fee increases effective June 1, 2009.

Part KK – Restructure state aid provided to municipalities in which a video lottery gaming facility is located

Purpose:

This bill establishes new limitations on State aid provided to municipalities that host a video lottery gaming facility, while preserving adequate reimbursement for costs incurred by communities where these facilities currently operate.

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

This bill amends State Finance Law §54-l, which authorizes a State aid program for local governments in which a video lottery gaming facility is located, to: (1) limit the aid program to current recipients; and (2) set payments in SFY 2009-10 and thereafter at the amount paid in SFY 2008-09 for the city of Yonkers, and at 50 percent of the amounts paid in SFY 2008-09 for the 17 other eligible municipalities.

The current aid formula allocates funding to eligible municipalities without regard to local need for such revenue or the actual fiscal impact resulting from hosting video lottery gaming facilities. A 50 percent reduction from SFY 2008-09 payment levels for eligible municipalities outside of Yonkers will make the program more affordable and still provide host municipalities with adequate reimbursement for any local costs resulting from the gaming operations in their communities. Aid to the City of Yonkers is held harmless because, unlike other eligible municipalities, its payment is used to directly fund the city’s school district. Further growth in this program is also contained by limiting the aid to current recipients, making New York City ineligible for an estimated $19.6 million payment when a video lottery gaming facility opens at Aqueduct.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget because it reduces the State cost of providing aid to municipalities where video lottery gaming facilities are located by an estimated $28.9 million in SFY 2009-10.

Effective Date:

This bill takes effect March 1, 2009.

Part LL – Expand New York City’s Red Light Camera Traffic Safety program, and provide certain cities and counties authorization to administer a similar program

Purpose:

This bill improves public safety and increase revenues for the State’s largest cities and counties, this bill expands the Red Light Camera Traffic Safety Program currently authorized for New York City and extends authorization for the program to the cities of Buffalo, Rochester, Syracuse and Yonkers, as well as Nassau and Suffolk counties.

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

This bill amends Vehicle & Traffic Law §1111-a to expand the Red Light Camera Traffic Safety Program currently operating in New York City to also include, at local option, the cities of Buffalo, Rochester, Syracuse and Yonkers, and the counties of Nassau and Suffolk.

The current Red Light Camera Traffic Safety Program is also modified as follows:

The maximum fine is increased from $50 to $100 for each violation.
The number of intersections in which cameras can be installed is no longer capped at 100, and instead becomes a local determination.
Scheduled to expire on December 1, 2009, statutory authorization for the program is made permanent.
State reporting requirements related to New York City’s demonstration program are repealed.

The bill also makes conforming amendments to the Administrative Code of the City of New York §19-210, Chapter 746 of the Laws of 1988, and Local Law Number 46 of the City of New York for the Year 1989.

Established in 1988 as a demonstration program for New York City, the Red Light Camera Traffic Safety Program has been shown to be a cost-effective approach to improving traffic safety. In recent years, a number of other large municipalities have requested similar authorization to both improve public safety and raise additional revenue to offset the local property tax burden. Because the program has proven successful in meeting both objectives over 20 years in New York City, it is reasonable to make it permanent in law and extend the program to other municipalities who have requested participation.

The maximum fine amount of $50 should be raised to $100 consistent with national trends for a cost-effective program. The $100 maximum fine is also at the low end or below the range of fines imposed for red light violations in New York State.

Finally, the cap on the number of intersections is removed because it is more appropriate for each local government to make this determination, as the optimal number of intersections will vary by municipality. Moreover, New York City has potential to expand its program in a cost-effective manner well beyond the current limit of 100 intersections.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget because it offers the State’s largest cities and counties the ability to improve traffic safety and raise additional revenue that will help offset reductions in other State aid programs. This expansion of the Red Light Camera Traffic Safety Program is estimated to raise additional annual revenue net of program expenses totaling $100 million for New York City in CFY 2009-10, growing to $233 million by CFY 2011-12, and approximately $50 million for the other eligible cities and counties combined.

Effective Date:

This bill takes effect immediately.

Part MM – Authorize cities and villages to collect utilities gross receipts taxes on mobile phone services

Purpose:

This bill relieves pressure on local property taxes by allowing cities and villages to collect utilities gross receipts tax on mobile phone services, as is currently done by New York City and the State.

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

This bill amends General City Law §20-b and Village Law §5-530 to include mobile telecommunications service within the scope of the utility gross receipts tax that may be imposed by cities and villages. The State, New York City, and approximately 60 cities and 360 villages outside of New York City currently impose gross receipt taxes under statutory authority that dates back to 1959. The statutes authorizing gross receipts taxes for New York City and the State were modernized to cover mobile telecommunication services in 1995 and 1998, respectively. This bill makes comparable changes for other cities and villages. The amendments conform to Federal Mobile Telecommunications Sourcing Act requirements to source mobile telecommunications services to the “place of primary use,” which generally is the customer’s residence or place of business.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget because it offers local governments a revenue alternative to ease the local property tax burden. Extending the utility gross receipts tax to mobile telecommunications is estimated to provide $12.5 million in additional annual revenue for cities and villages outside of New York City.

Effective Date:

This bill takes effect immediately, and applies to taxable periods beginning on and after September 1, 2009.

Part NN – Enact recommendations made by the Commission on Local Government Efficiency and Competitiveness

Purpose:

This bill makes statutory changes necessary to implement certain recommendations of the Commission on Local Government Efficiency and Competitiveness related to municipal health benefit plan cooperatives, improved coordination of State and local highway services, certain inter-county functions, special districts, unified process for municipal consolidations and dissolutions, and conversion of elected local offices.

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

This bill facilitates local restructuring and efficiency by enacting several of the recommendations of the Commission on Local Government Efficiency and Competitiveness.

Sections 1 through 7 amend the Insurance Law to relax the requirements for forming a municipal cooperative health benefit plan pursuant to Article 47 of the Insurance Law as follows:

Require insurers to provide up to three years of claims experience to a municipal corporation when it requests such information for the purposes of forming or joining such a cooperative;
Reduce the minimum number of municipal corporations needed to establish such a cooperative from five to three;
Provide flexibility in the reserve requirements for such cooperatives by allowing a qualified actuary to determine the amount of reserves each individual cooperative needs, and by allowing new cooperatives to amass these reserves over a five-year transition period. All such cooperatives are currently held to the same reserve requirements, regardless of the characteristics of their covered population, and are currently obligated to meet this requirement at the time of their formation; and
Direct the Insurance Department to order a study, to be completed by September 1, 2010, of the impact on the community-rated health insurance market of allowing municipalities with 50 or fewer employees to join with larger municipalities to purchase experience-rated policies.

These changes are necessary because, due to the current stringent requirements, not a single municipal cooperative health benefit plan has been formed since the enactment of Article 47 in 1994. Municipalities also are deterred from forming or joining such cooperatives because they lack access to their claims experience and so cannot make an informed decision as to the potential risks and benefits of such an action. Several municipalities are currently exploring countywide municipal health benefit plans, and those looking into them have identified the cost of community-rated policies as a problem.

Sections 8 and 9 amend the Agriculture and Markets Law to allow multiple counties to share one Director of Weights and Measures pursuant to an intermunicipal agreement. The Agriculture and Markets Law currently requires each county to have its own Director of Weights and Measures, who must reside in the county. This change has the potential not only to improve the delivery of such services, but also to generate cost savings for counties. The bill also amends the County Law to update antiquated “Sealer” references to conform to current terminology. Some counties have explored sharing this position.

Sections 10 through 13 amend the General Municipal Law and the Highway Law to facilitate shared services agreements among municipalities and between municipalities and State agencies. These amendments will:

Expand the list of services that can be the subject of shared service contracts;
Authorize non-monetary exchanges of goods and services;
Allow the State Department of Transportation (DOT) to contract with municipalities for terms of up to five years; and
Broaden the range of emergency situations for which DOT can provide assistance, and allow municipalities to similarly assist the State.

Currently, DOT can contract with municipalities only for three-year terms and can provide only snow and ice control services to municipalities in emergencies. These amendments have the potential to make the delivery of highway services more efficient and more cost-effective at both the state and local levels.

Section 14 amends the Public Health Law to allow certain county and part-county health districts to share the same commissioner/director and, under these circumstances, to also have common district board members, subject to the approval of the State Department of Health (DOH). Residency requirements currently prohibit such sharing of board members. DOH will be required to periodically review approved director- and board-sharing arrangements to verify that such joint membership continues to serve the interest of public health. This change will allow small county or part-county health districts to reduce their administrative expenses without lowering the quality of the services they provide. Some counties have explored this option.

Section 15 amends the Town Law to prohibit special district commissioners from receiving compensation for their services. However, such commissioners may still receive reimbursement for any actual and necessary expenses they incur in the performance of their official duties. Under current law, commissioners may receive compensation of up to $100 for each day spent in the service of the district, as well as health insurance and other perquisites. This change brings special district commissioners into conformity with school board members and fire district commissioners, who are also barred from receiving compensation. Audits by the Nassau County Comptroller have shown that many special district commissioners currently receive significant salaries and benefits.

Sections 16 and 17 amend the Town Law to address the wide variation in special district sanitation collection costs. The bill transfers to town boards most of management responsibilities for town special districts providing sanitary, refuse, or garbage services, but allows elected special district commissioners to continue to hold referenda on whether the level of services provided to district residents should be changed. As the Nassau County Comptroller has documented, some sanitation districts charge households up to three times more than other districts providing substantially the same level of services. These amendments have the potential to improve the management and reduce the costs of these special districts.

Sections 18 through 25 add a new Article to the General Municipal Law and amend the Town and Village Law to create a unified merger process for towns and villages as well as a unified petition process for fire districts and fire protection districts. Specifically, it allows for an action by the governing board or a petition from 10 percent of residents of the jurisdiction to initiate the merger process in towns and villages and the consolidation process in fire districts and fire protection districts. It also repeals the many different town and village consolidation and dissolution processes and creates a single merger process in a new article of the general municipal law. In its research, the Commission found several instances of confusion over the merger processes and petitions being rejected for technical flaws. These amendments seek to clarify and unify the process to allow residents to make informed decisions about the merger of their local governments.

Sections 26 through 28 amend the Town Law to allow a town board to convert the positions of town clerk, town highway superintendent, and town receiver of taxes and assessments from elected to appointed, subject to permissive referendum. Under current law, a town board can convert these positions from appointed to elected, subject to permissive referendum. It also amends town law to allow first class towns to consolidate the positions of town receiver of taxes and assessments and the town clerk. Under current law, towns of the second class already have this power. It also amends the town law to allow a town board to consolidate the positions of public works commissioner and town highway superintendent, subject to permissive referendum. These amendments provide towns additional flexibility in how their government is structured.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget because it adopts recommendations of the Commission on Local Government Efficiency and Competitiveness, including proposals with the potential to create efficiencies and generate cost savings for municipalities.

Effective Date:

This bill takes effect March 1, 2009, except sections 15 and 16 take effect on January 1, 2010.

Part OO – Authorize the City of New York to increase certain fees

Purpose:

This bill allows the City of New York to generate additional revenue by increasing certain local fees.

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

As part of an effort to address its projected outyear budget gaps, this bill will enable the City of New York to generate additional revenue by increasing the amount of certain fees. Specifically, this bill authorizes the City to:

increase the fee collected by the city clerk to perform a marriage ceremony from $25 to $40.
increase the fee collected by the city clerk for issuing a marriage certificate or a certified copy of a marriage certificate from $10 to $15.
provide for a $15 fee to be collected by the city clerk for the priority handling of a marriage certificate or license.
increase the fee collected by the city clerk for a marriage license from $25 to $40.
increase the fee collected by the city clerk to perform a marriage license search for one year from $5 to $15.
increase the fee collected by the city clerk from $25 to $30 for filing the oath of office from the commissioner of deeds.
increase the fee for a birth or death certificate collected by the city department of health and mental hygiene from $15 to $30.
provide for a $15 fee to be collected by the city department of health and mental hygiene for the priority handling of a birth or death certificate.
increase the fee that the City can impose on owners participating in the rent stabilization program from $10 to $50 to cover the actual costs of the program.

Budget Implications:

This bill could generate an additional $40 million annually to support the operations of the City of New York.

Effective Date:

This bill takes effect March 1, 2009, except that any rules necessary for the timely implementation of this act on its effective date may be promulgated on or before such date.

Part PP – Authorize transfers, temporary loans and miscellaneous capital/debt provisions, including certain bond caps

Purpose:

This bill provides the statutory authorization necessary for the administration of funds/accounts included in the 2009-10 Executive Budget and proposes certain modifications to improve the State’s General Fund position within the fiscal year.

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

Section 1 authorizes specific State funds and accounts to receive temporary loans during the 2009-10 fiscal year.

Sections 2 through 9 authorize transfers between designated funds and accounts.

Section 10 authorizes the State Comptroller to deposit funds to the banking services account.

Section 11 authorizes transfers between the miscellaneous special revenue fund patient income account, the miscellaneous special revenue fund mental hygiene program fund, and the General Fund in any combination up to $200 million.

Section 12 authorizes the transfer of the unencumbered balance of any Special Revenue Fund to the General Fund up to $200 million.

Section 13 amends subdivision 5 of section 97-rrr of State Finance Law to allow the State Comptroller to make deposits in the School Tax Relief Fund in fiscal year 2009-10.

Section 13-b amends section 11-a of Part RR of Chapter 57 of the laws of 2008 to authorize the Power Authority to make contributions to the General Fund.

Section 14 amends section 41 of Chapter 60 of the laws of 1993 to authorize the loan of moneys from the Contingency Reserve Fund to the General Fund and requires repayment within the same fiscal year, consistent with the provisions governing the Tax Stabilization Reserve.

Section 15 amends section 92-cc of State Finance Law to authorize the loan of moneys from the Rainy Day Fund to the General Fund and requires repayment within the same fiscal year, consistent with the provisions governing the Tax Stabilization Reserve.

Section 16 amends subdivision 5 of section 4 of State Finance Law to authorize the General Fund, similar to many other funds and accounts, to receive a temporary loan, for cash-flow purposes, but subject to a stricter repayment timetable. The loan must be repaid in full within four months of its origination or by the end of the fiscal year, whichever comes sooner.

Section 17 repeals subdivisions (b) of section 1 of part MM of chapter 59 of the laws of 2008 relating to deposits into the Community Projects Fund.

Section 18 repeals subdivision (a) of section 2 of part MM of chapter 59 of the laws of 2008 relating to deposits into the Community Projects Fund.

Section 19 omitted

Section 20 repeals section 3 of part MM of chapter 59 of the laws of 2008 relating to deposits into the Community Projects Fund.

Section 20 authorizes reimbursement to the General Fund from the Correctional Facilities Capital Improvement Fund for costs related to capital projects.

Sections 21 through 32 authorize the State Comptroller to deposit reimbursements for certain capital spending from multiple appropriations contained in various chapters of the laws of 1999 through 2009 into various funds including the Capital Projects Fund.

Section 33 continues the authorization to use excess debt service appropriation for Mental Hygiene facilities to make rebates necessary to protect the tax-exempt status of the bonds.

Section 34 continues authorizations for disbursements for hazardous waste site remediation projects.

Section 35 amends section 69-c of State Finance Law to add that any variable rate bonds that are converted or refunded to a fixed rate shall be assumed to generate a present value savings.

Sections 36 through 49 update maximum bonding authorization amounts across several areas.

Section 50 through 51 amends State Finance Law to allow any public authority that is authorized to issue Personal Income Tax (PIT) Revenue Bonds to issue debt for any other public authorities’ authorized purposes for this program, subject to existing Public Authorities Control Board (PACB) approval requirements. This provision is needed now, more than ever, in response to recent crises in the financial markets that have limited access to the capital markets, and to prevent potential negative impacts to the Financial Plan related to reimbursing bond-financed capital projects spending. In addition this bill amends the related capital reimbursement provisions to permit issuer flexibility without disrupting the existing capital responsibility of authorities.

Sections 53 through 55 amend law to state that the State's right to require redemption of bonds shall not apply to state-supported debt and that these bonds will remain subject to redemption provisions pursuant to any contract with the holders of such bonds.

Section 56 adds a new provision of law to authorize transfers from the Health Care Reform Act (HCRA) to the General Debt Service Fund to pay for related debt service costs.

Section 57 makes the act effective immediately with full force and effect as of March 1, 2009.

This bill is necessary to execute a balanced Financial Plan in accordance with the 2009-10 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 2008-09 Budget and need to be extended to implement the 2009-10 Budget.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 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. 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 reduced borrowing costs for certain State-supported debt, and to permit the State to carry out basic administrative functions.

Effective Date:

This bill takes effect on March 1, 2009.

The provision 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.

2009-10 NEW YORK STATE EXECUTIVE BUDGET PUBLIC PROTECTION AND GENERAL GOVERNMENT ARTICLE VII LEGISLATION MEMORANDUM IN SUPPORT

CONTENTS

PURPOSE:

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

Part B – Make technical changes to the State Wireless Communications Service Surcharge

Part C – Establish a fee to cover the state cost of processing waivers under Section 211 of the Retirement and Social Security Law

Part D – Create a not-for-profit corporation and transfer the Office of Cyber Security and Critical Infrastructure Coordination to that corporation

Part E – Limit reimbursement to health care providers for performing forensic rape examinations to actual costs not to exceed $800; establish a one year time limit on submission of claims for reimbursement of medical and counseling expenses; and allow restitution to be paid by credit card

Part F – Require applicants to be licensed as an insurance agent, broker, adjuster, consultant, or intermediary, to submit their fingerprints to the Division of Criminal Justice Services as part of a background check

Part G – Establish fees for new and renewal certification of security guard instructors and security guard training schools operating in New York State

Part H – Modify the prison closure notification requirement and authorize the acceptance by the Department of Correctional Services to house local inmates and federal prisoners

Part J – Expand eligibility criteria for state inmates to qualify for medical parole and streamline the medical parole application process

Part K – Authorize the Department of Correctional Services to sell its cook-chill products to not-for-profit organizations (food kitchens and shelters) at the cost to produce and deliver the products

Part L – Expand eligibility for the Shock Incarceration Program and establish a new limited credit time allowance for inmates

Part M – Eliminate reimbursement of local jails for the housing of parole violators and state-ready inmates, except in instances where the Department of Correctional Services (DOCS) cannot provide a general confinement bed within 10 business days after notification that an inmate is state ready

Part N – Encourage the adoption of graduated sanctions for parole violators and the use of a risk and needs assessment instrument

Part O – Credit probation sentences for time served under interim supervision; and implement a one-time $25 probation registration fee with the revenue to be retained by local probation departments

Part P – Eliminate Batterers Project funding administered by the Office for the Prevention of Domestic Violence

Part Q – Modify the responsibilities of the State Commission of Correction and provide options to administrators of local jails to reduce their operating costs

Part R – Increase the assessment on nuclear power plant facilities to support emergency preparedness planning efforts

Part S – Establish a program for photo-monitoring enforcement of speed limits in work zones and designated stretches of highway

Part T – Increase the Motor Vehicle Law Enforcement fee applied to the purchase of vehicle insurance to support the cost of state police operations

Part U – Extend various criminal justice programs that would otherwise sunset

Part V – Abolish the State Employment Relations Board and shift responsibilities to the Public Employment Relations Board

Part W – Establish the Office of Procurement Services to ensure that the state is undertaking procurement consistent with best practices to receive the maximum value at the lowest possible cost

Part X – Modify the maintenance-of-effort (MOE) requirement for counties and the City of New York to receive funds from the Indigent Legal Services Fund and the formula for distribution of such funds

Part Y – Provide the New York State Health Insurance Program the option to operate as a self-insured plan

Part Z – Establish a sliding scale for retiree health insurance premium contributions for future state retirees

Part AA – Require state employees and retirees to contribute to Medicare Part B premiums

Part BB – Eliminate the general salary increases scheduled on or after April 1, 2009 provided for in collective bargaining agreements, interest arbitration awards, and for M/C employees

Part CC – Implement a Tier 5 pension benefit for newly hired state and local government employees

Part DD – Authorize a new tier of pension benefits for newly hired New York City uniformed employees, submitted at the request of the Mayor

Part EE – Implement an additional 5-day pay deferral for all state employees

Part FF – Reduce state payments in lieu of taxes and freeze payments for taxes on state owned lands

Part GG – Modify the Aid and Incentives for Municipalities (AIM) Program

Part HH – Provide mandate relief for local governments

Part II – Extend authorization for the Office of Real Property Services to charge oil and natural gas producers for determining the property value of oil and gas units of production

Part JJ – Increase the real property transfer fees that support expenses of the Office of Real Property Services, and redirect the deposit of these fees to the General Fund

Part KK – Restructure state aid provided to municipalities in which a video lottery gaming facility is located

Part LL – Expand New York City’s Red Light Camera Traffic Safety program, and provide certain cities and counties authorization to administer a similar program

Part MM – Authorize cities and villages to collect utilities gross receipts taxes on mobile phone services

Part NN – Enact recommendations made by the Commission on Local Government Efficiency and Competitiveness

Part OO – Authorize the City of New York to increase certain fees

Part PP – Authorize transfers, temporary loans and miscellaneous capital/debt provisions, including certain bond caps

2009-10 NEW YORK STATE EXECUTIVE BUDGET
PUBLIC PROTECTION AND GENERAL GOVERNMENT
ARTICLE VII LEGISLATION
MEMORANDUM IN SUPPORT