2009-10 NEW YORK STATE EXECUTIVE BUDGET
TRANSPORTATION,
ECONOMIC DEVELOPMENT AND
ENVIRONMENTAL CONSERVATION
ARTICLE VII LEGISLATION
MEMORANDUM IN SUPPORT

CONTENTS

MEMORANDUM IN SUPPORT

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

AN ACT to amend chapter 279 of the laws of 1998 amending the transportation law relating to enabling the commissioner of transportation to establish a single audit pilot program, in relation to extending such provisions (Part A); to authorize funding for the Consolidated Local Street and Highway Improvement Program (CHIPS) and Marchiselli program for state fiscal year 2009-10 (Part B); to amend chapter 312 of the laws of 1994, amending the vehicle and traffic law relating to suspensions of licenses pending prosecution of certain alcohol-related charges, and authorizations for probationary and conditional driver's licenses, in relation to the effectiveness thereof (Part C); to amend chapter 533 of the laws of 1993 amending the vehicle and traffic law and the correction law relating to suspension and revocation of driver's licenses upon conviction of certain drug-related offenses, in relation to the effectiveness thereof (Part D); to amend chapter 84 of the laws of 2002, amending the state finance law relating to the costs of the department of motor vehicles, in relation to the effectiveness thereof (Part E); to amend the vehicle and traffic law, in relation to license fees (Part F); to amend the vehicle and traffic law, in relation to motor vehicle registration fees (Part G); to amend the vehicle and traffic law, in relation to the fee for number plates (Part H); to amend the vehicle and traffic law, in relation to eliminating the cap on surcharges (Part I); to amend chapter 569 of the laws of 1981, amending the vehicle and traffic law relating to motor vehicle liability insurance, financial security, criminal acts and penalties for non-compliance, in relation to the effectiveness of certain provisions; to amend chapter 781 of the laws of 1983, amending the vehicle and traffic law and other laws relating to motor vehicle liability insurance, financial security, criminal acts and certain penalties for non-compliance, in relation to the effectiveness of certain provisions (Part J); to amend the vehicle and traffic law and the transportation law, in relation to the disqualifications of commercial driver's license holders (Part K); to amend the vehicle and traffic law, in relation to authorizing the department of motor vehicles to charge certain entities a fee for course completion certificates (Part L); to amend chapter 166 of the laws of 1991, amending the tax law and other laws relating to taxes, and 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 chapters (Part M); to amend the vehicle and traffic law, in relation to the elimination of the written test for a learner's permit and providing for the repeal of paragraph (g) of subdivision 4 of section 502 of such law relating thereto (Part N); to amend the state finance law, in relation to reporting requirements for the dedicated highway and bridge trust fund; and to amend part Z of chapter 62 of the laws of 2006 amending the state finance law relating to the use of the dedicated highway and bridge trust fund, in relation to certain financial reporting requirements (Part O); to amend chapter 62 of the laws of 2003 amending the general business law and other laws relating to implementing the state fiscal plan for the 2003-2004 state fiscal year, in relation to the effectiveness thereof (Part P); to amend the agriculture and markets law, in relation to increasing the penalty amounts for first, second and subsequent violations (Part Q); to amend the executive law, in relation to the community services block grant program and to amend chapter 728 of the laws of 1982 and chapter 710 of the laws of 1983 amending the executive law relating to the community services block grant program, in relation to extending such program for one year (Part R); to amend the general business law, the executive law and the real property law, in relation to increasing certain fees related to the licensure of disciplines regulated by the department of state; and to repeal certain provisions of the executive law relating thereto (Part S); to amend the tax law, in relation to real estate transfer tax revenue deposits into the environmental protection fund (Part T); to authorize and direct the New York state energy research and development authority to make a payment to the general fund of up to $913,000 (Part U); to amend the racing, pari-mutuel wagering and breeding law, in relation to assessing a fee upon the entry of a horse in a New York state pari-mutuel race (Part V); to amend the insurance law in relation to increasing fines and penalties; authorizing the superintendent of insurance to issue cease and desist orders; and increasing the length of time that an insurance producer, consultant, or adjuster must wait to obtain a license after revocation (Part W); to amend chapter 393 of the laws of 1994, amending the New York state urban development corporation act relating to the powers of the New York state urban development corporation to make loans, in relation to the effectiveness thereof (Part X); to authorize the New York State Energy Research and Development Authority to finance a portion of its research, development and demonstration and policy and planning programs from assessments on gas and electric corporations (Part Y); to require appropriations in the executive budget to the New York Power Authority (Part Z); to amend the public authorities law, in relation to authorizing the battery park city authority to make contributions to the state treasury (Part AA); authorizing the New York state urban development corporation to make contributions to the state treasury (Part BB); to amend the New York state urban development corporation act, in relation to establishing the New York growth, achievement and investment strategy fund (Part CC); to authorize and direct the governor, the temporary president of the senate and the speaker of the assembly to develop a $300 million economic development capital spending reduction plan (Part DD); to amend the New York state urban development corporation act, in relation to the abolition of the department of economic development and the New York state foundation for science, technology and innovation and the transfer of functions thereof to the New York state urban development corporation; and to repeal the provisions of sections 10 and 50 of the economic development law and sections 3151 and 3152 of the public authorities law relating thereto (Part EE); to amend the public authorities law, in relation to state cost recovery on the issuance of certain bonds (Part FF); to transfer the functions, powers, duties, obligations and assets of the State Northeastern Queens Nature and Historical Preserve Commission to the office of parks, recreation and historic preservation; and to repeal chapter 919 of the laws of 1973, relating to establishing the State Northeastern Queens Nature and Historical Preserve (Part GG); to amend the executive law, in relation to establishing the Hudson river valley greenway program and transferring certain functions, powers, duties, obligations and assets of the Hudson river valley greenway, the Hudson river valley greenway communities council and the Hudson river valley greenway heritage conservancy created under article 44 of the environmental conservation law to the secretary of state and the department of state; to amend the agriculture and markets law, the highway law and the navigation law, in relation to such transfer; to repeal section 97-n of the state finance law relating to the Hudson river valley greenway fund; to repeal article 44 of the environmental conservation law relating to the establishment of the Hudson river valley greenway; and providing for the repeal of certain provisions upon the expiration thereof (Part HH); to amend the agriculture and markets law, in relation to increasing tonnage fees, and requiring the licensure of seed labelers and distributors (Part II); to amend the environmental conservation law, in relation to fees for the state pollution discharge elimination system program (Part JJ); to amend the environmental conservation law, in relation to establishing a trout and salmon stamp (Part KK); to amend the environmental conservation law and the state finance law, in relation to establishing a recreational marine fishing license; and to repeal subdivision 6 of section 11-0707 of the environmental conservation law relating to the exemption from having a fishing license in the marine district and on the Hudson River, south of the Troy barrier dam (Part LL); to amend the public service law, in relation to authorizing the public service commission to forbear from applying telephone rate and financing provisions; service of commission orders; renewal and amendments of cable franchises; and shared meter conditions; and to repeal certain provisions of such law relating thereto (Part MM); to amend the public service law, in relation to financing the operations of the department of public service, the public service commission, department support and energy management services provided by other state agencies, to increase the utility assessment cap and the minimum threshold for collection thereunder, and to establish a state energy and utility service conservation assessment and provide for the collection thereof; to amend the state finance law in relation to authorizing the aggregate purchases of energy for state agencies, institutions, public authorities and public benefit corporations; and providing for the repeal of certain provisions upon the expiration thereof (Part NN); to amend the vehicle and traffic law, in relation to fines for certain regulated businesses (Part OO); to amend the vehicle and traffic law, in relation to suspension, termination and license application fees (Part PP); to amend the state finance law, in relation to dedicating the local share of revenue generated by the gaming facility located in the city of Buffalo (Part QQ); to amend chapter 21 of the laws of 2003 amending the executive law, relating to permitting the secretary of state to provide special handling for all documents filed or issued by the division of corporations and to permit additional levels of such expedited service, in relation to the effectiveness thereof (Part RR); to amend the environmental conservation law, the economic development law and the state finance law, in relation to including additional beverage containers and providing for the return of unclaimed deposits on beverage containers to the state for deposit into the environmental protection fund; and to repeal certain provisions of the environmental conservation law relating thereto (Part SS); to amend the parks, recreation and historic preservation law, in relation to requiring that a written determination by the commissioner of parks, recreation and historic preservation be made prior to future sales of merchandise, goods, commodities and food service items by the office of parks, recreation and historic preservation (Part TT); to amend the public authorities law, in relation to the assessment and reimbursement of state expenditures (Part UU); and to amend the tax law, in relation to the imposition of fees on certain taxpayers, to prohibit tax return preparers and software companies from charging separately for electronic filing of New York tax documents, to require registration of tax return preparers with the New York state department of taxation and finance; to amend the general business law, in relation to administration of certain civil penalties; and to repeal paragraphs 1 and 2 of subsection (u) of section 685 of the tax law relating to penalties imposed on certain tax return preparers (Part VV)

PURPOSE:

This bill contains provisions needed to implement the Transportation, Economic Development and Environmental Conservation portions of the 2009-10 Executive Budget.

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

Part A – Extend the Department of Transportation’s (DOT) Single Audit Program

Purpose:

This bill extends for one year the provisions of Section 21 of the Transportation Law, which unifies and simplifies the audit process for State transportation assistance to municipalities and public authorities by aligning that process with the Federal single audit.

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

Section 2 of chapter 279 of the laws of 1998, as amended by section 2 of chapter 100 of the laws of 1999 and section 1 of part D of chapter 59 of the laws of 2008, would be amended to extend the December 31, 2009 expiration date to December 31, 2010.

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

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

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget because absent these changes, the Department would incur approximately $300,000 in additional annual auditing costs for these programs.

Effective Date:

This bill takes effect immediately.

Part B – Provide the annual authorization for the CHIPS and Marchiselli Programs

Purpose: 

This bill authorizes funding for the Consolidated Local Street and Highway Improvement Program (CHIPS) and Marchiselli program for State fiscal year 2009-10. 

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

This bill authorizes the CHIPS and Marchiselli capital aid programs to counties, cities, towns and villages for State fiscal year 2009-10 at $250.9 million and $39.7 million respectively.

Budget Implications:

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

Effective Date:

This bill takes effect immediately.

Part C – Make permanent the suspension of driver licenses for certain alcohol-related charges

Purpose: 

This bill prevents the State from losing vital transportation capital grants from the Federal government, by conforming State law to Federal requirements regarding penalties for use of alcohol while operating motor vehicles.

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

This is current law that must be extended to avoid losing Federal highway assistance.  It has been extended numerous times in the past.  Part C of Chapter 59 of 2007 extended the law until October 1, 2009 (after the end of the Federal fiscal year).

This bill amends Section 7 of Chapter 312 of the Laws of 1994 (pertaining to Vehicle and Traffic Law), as most recently amended by Part C of Section 1 of Chapter 59 of the Laws of 2007, to permanently extend the State’s conformance to Federal law, by imposing a suspension of driving privileges upon those charged with driving while intoxicated.

Failure to enact this legislation results in non-compliance with Title 23 USC, section 164, causing the Department of Transportation a three percent annual loss of certain Federal highway funds (Surface Transportation Program, Interstate Maintenance, and National Highway System).

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget because failure to do so would require the State to transfer highway capital funds (approximately $19 million annually) to highway safety programs.

Effective Date:

This bill takes effect on March 1, 2009.

Part D – Make permanent the suspension/revocation of driver licenses for certain drug-related offenses

Purpose:

This bill prevents the State from losing vital transportation capital grants from the Federal government, by conforming State law to Federal requirements regarding penalties for use of drugs while operating motor vehicles.

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

This is current law that must be extended to avoid losing federal highway assistance.  It has been extended numerous times in the past.  Part N of Chapter 59 of 2007 extended the law until October 1, 2009 (after the end of the Federal fiscal year).

This bill amends Section 9 of Chapter 533 of the Laws of 1993 (pertaining to Vehicle and Traffic Law, and Correction Law), as most recently amended by Part N of Section 1 of Chapter 59 of the Laws of 2007, to permanently extend the State’s conformance to Federal law, by imposing a suspension of driving privileges upon those convicted of certain drug-related crimes.

Failure to enact this bill will result in non-compliance with Title 23 USC, section 159, causing a ten percent annual loss of certain Federal highway funds (Surface Transportation Program, Interstate Maintenance, and National Highway System).

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget because failure to do so would cost the State ten percent of certain categories of Federal highway capital funds (approximately $63 million annually).

Effective Date:

This bill takes effect on March 1, 2009.

Part E – Make permanent authorization to pay Department of Motor Vehicles (DMV) costs from the Dedicated Highway and Bridge Trust Fund

Purpose:

This bill allows the State’s Dedicated Highway and Bridge Trust Fund (DHBTF) to continue to disburse funds, pursuant to appropriations and re-appropriations, for the expenses of the Department of Motor Vehicles (DMV). 

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

This is current law that must be extended to avoid the DMV losing its ability to fully fund operations.  The authority to fund DMV expenses was given to the DHBTF in 2002; prior to that time, these expenses were paid by the General Fund.  Section 1-b of Chapter 63 of 2005 extended the law until March 31, 2010.

This bill amends Section 2 of Part B of Chapter 84 of the Laws of 2002 (pertaining to State Finance Law), as most recently amended by Section 1-b of Chapter 63 of the Laws of 2005, to permanently extend the DHBTF’s ability to pay for the expenses of the DMV.

Absent this bill, effective March 31, 2010, all DMV spending from DHBTF appropriations and re-appropriations would immediately be halted, even though spending authority is otherwise permitted and necessary from prior year appropriations through September 15, 2010. 

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget because failure to do so would impair the ability to fully fund DMV’s operations.

Effective Date:

This bill takes effect on March 1, 2009.

Part F – Increase driver license fees by 25 percent

Purpose:

This bill would increase driver’s license fees by 25 percent and direct the additional revenues to the Dedicated Highway Bridge Trust Fund (DHBTF).

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

This bill would increase all driver license (original and renewal) fees by 25 percent.  Revenues from this increase would be directed to the DHBTF.

Section 1 amends paragraphs (b) and (c) of subdivision 2 of section 503 of the vehicle traffic law to increase the commercial driver’s license from seven dollars and fifty cents to nine dollars and fifty cents; increase class C and Class E licenses from five to six dollars and twenty five cents; and increase the class D, DJ, M or MJ licenses from two dollars and fifty cents to three dollars and twenty five cents.  These fees are based on a six month interval.  The additional revenues from these fee increases shall be directed to the DHBTF.

Section 2 amends paragraph (f) of subdivision 2 of section 503 of the vehicle and traffic law to increase the photo image fee from ten dollars to twelve dollars and fifty cents.   The revenues generated from this increase shall be directed to the DHBTF.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget to generate $21.9 million in 2009-10 and $37.6 million thereafter.

Effective Date:

This bill takes effect August 1, 2009. 

Part G – Increase registration fees by 25 percent

Purpose:

This bill would increase registration fees for most vehicles and fees for distinctive plates by 25 percent. 

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

This bill would increase registration fees for most vehicles by 25 percent.  Receipts from this increase would be directed to the Dedicated Highway and Bridge Trust Fund.

Section 1 amends paragraph (a) of subdivision 6 of section 401 of the Vehicle and Traffic Law to increase the fee for registration or re-registration of a motor vehicle, including a suburban, by 25 percent.

Section 2 amends subdivision 2 of section 420 of the Vehicle and Traffic Law to increase the fee for transferring license plates from one vehicle to another by 25 percent.

Section 3 amends subdivision 21 of section 401 of the Vehicle and Traffic Law to dedicate the fee increases from paragraph (a) of subdivision 6  and schedules A, B, C, D, E, F and I of subdivision 7, and subdivisions 8 and 13 of section 401 to the Dedicated Highway and Bridge Trust Fund, effective August 1, 2009.

Section 4 amends paragraphs (a) and (b) of subdivision 4 of section 2282 of the Vehicle and Traffic Law to increase the annual fee for each individual resident and nonresident registration by 25 percent.

Section 5 amends subdivision 3 of section 2251 of the Vehicle and Traffic Law to increase the triennial fee for registration of a vessel by 25 percent.  This section also dedicates this fee increase to the Dedicated Highway and Bridge Trust Fund, effective August 1, 2009. 

Section 6 amends schedule A of subdivision 7 of section 401 of the Vehicle and Traffic Law to increase the fee for registration for buses by 25 percent.

Section 7 amends paragraphs (1) and (2) of schedule B subdivision 7 of section 401 of the Vehicle and Traffic Law to increase the annual fee for registration for each auto truck or light delivery car and tractor by 25 percent.

Section 8 amends schedule C of subdivision 7 of section 401 of the Vehicle and Traffic Law to increase the fee for registration for taxicabs and livery vehicles by 25 percent.

Section 9 amends paragraph (1) of schedule E of subdivision 7 of section 401 of the Vehicle and Traffic Law to increase the fee for registration for agricultural trucks by 25 percent.

Section 10 amends paragraph (a) of schedule F of subdivision 7 of section 401 of the Vehicle and Traffic Law to increase the fee for registration for road rollers, tractor cranes, power shovels, road building machines, snow plows, road sweepers, sand spreaders, well drillers, well servicing rigs, feed processing machines, mobile car crushers, earth movers, spreaders or sprayers, and fire vehicles by 25 percent.

Section 11 amends paragraph (2) of schedule I of subdivision 7 of section 401 of the Vehicle and Traffic Law to increase the fee for registration of rental vehicles by 25 percent.

Section 12 amends schedule K of subdivision 7 of section 401 of the Vehicle and Traffic Law to increase the fee for registration for heavy duty vehicles by 25 percent.  This section also dedicates this fee increase to the Dedicated Highway and Bridge Trust Fund, effective August 1, 2009. 

Section 13 amends paragraph (a) of subdivision 8 of section 401 of the Vehicle and Traffic Law to increase the fee for registration or re-registration of a trailer, a coach or house trailer, and a semitrailer by 25 percent.

Section 14 amends subdivisions 2 and 3 of section 405-c of the Vehicle and Traffic Law to increase the fee for a cab card and the fee for a trip permit by 25 percent.

Section 15 amends the opening paragraph of section 401-a of the Vehicle and Traffic Law to increase the fee for an in-transit permit by 25 percent.

Section 16 amends paragraph (a) subdivision 5 of section 410 of the Vehicle and Traffic Law to increase the annual fee for registration or re-registration for motorcycles by 25 percent.

Section 17 amends subdivision 1 of section 411-a of the Vehicle and Traffic Law to increase the annual service charge for special number plates by 25 percent.

Section 18 amends section 411-b of the Vehicle and Traffic Law to increase the registration fee schedule for historical motorcycles by 25 percent.

Section 19 amends paragraph (b) of subdivision 3 of section 2261 of the Vehicle and Traffic Law to increase the annual fee for registration, renewal, re-registration or amendment or duplicate of a registration of a limited use motorcycle by 25 percent.

Section 20 amends paragraph (a) and (b) of subdivision 4 of section 2222 of the Vehicle and Traffic Law to increase the fee for each individual resident and nonresident registration by 25 percent.

Section 21 amends subparagraph (A) of paragraph (e) of subdivision 6 of section 401 of the Vehicle and Traffic Law to increase the annual service charge for a radio operator number plate by 25 percent.  This section also dedicates this fee increase to the Dedicated Highway and Bridge Trust Fund, effective August 1, 2009. 

Section 22 amends subdivision 1 of section 404 of the Vehicle and Traffic Law to increase the annual service charge for special number plates by 25 percent.  This section also dedicates this fee increase to the Dedicated Highway and Bridge Trust Fund, effective August 1, 2009. 

Section 23 amends subdivision 2 of section 404 of the Vehicle and Traffic Law to increase the annual service charge for a special number plate or a plate reserved for vehicles owned by public officers, physicians, visiting nurses, accredited representatives of the press or other groups by 25 percent.  This section also dedicates this fee increase to the Dedicated Highway and Bridge Trust Fund, effective August 1, 2009. 

Section 24 amends subdivision 2 of section 404-1 of the Vehicle and Traffic Law to increase the annual service charge for a distinctive plate by 25 percent.  This section also dedicates this fee increase to the Dedicated Highway and Bridge Trust Fund, effective August 1, 2009. 

Section 25 amends paragraph (b) of subdivision 3 of section 401 of the Vehicle and Traffic Law to increase the fee to change the distinctive number assigned to a vehicle and issue a new set of number plates by 25 percent. 

Section 26 amends schedule G of subdivision 7 of section 401 of the Vehicle and Traffic Law to increase the registration fee schedule for historical motor vehicles by 25 percent. 

Section 27 amends subdivision 6 and 8 of section 420 of the Vehicle and Traffic Law to increase the fee for a new certificate of registration by 25 percent.

Section 28 states that this act shall take effect on August 1, 2009. 

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget to generate $60.5 million in 2009-10 and $103.7 million thereafter.  

Effective Date:

This bill takes effect August 1, 2009. 

Part H – Reissue license plates at a cost of $25

Purpose:

This bill would require the reissuance of license plates at a cost of $25.

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

This bill would require the Commissioner of the Department of Motor Vehicles to reissue reflectorized number plates.  The fee is increased from $15 to $25.  Revenues will continue to be directed to the General Fund. 

Section 1 would amend paragraph (a) of subdivision 3 of section 401 of the Vehicle and Traffic Law to increase the plate issuance fee from $15 to $25 dollars. 

Section 2 states that this act shall take effect on April 1, 2010.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget to generate $129 million for the General Fund in 2010-11 and 2011-12.

Effective Date:

This bill takes effect April 1, 2010. 

Part I – Eliminate the $100 cap on surcharges for violators with two or more convictions arising out of the same incident

Purpose:

This bill would eliminate the $100 cap on surcharges for violators with two or more convictions arising out of the same traffic incident. 

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

The State is facing a significant budget deficit and this bill would require violators to pay the full amount of all ticket surcharges for multiple violations arising from the same traffic incident.  In the case of two convictions arising from one incident, the violator would be required to pay $120 for surcharges; under the cap, the maximum surcharges paid would have only been $100.    

In 2003, the moving violation surcharge was increased from $50 to $60, but the cap remained unchanged at $100.  This cap limited the revenue collection to the State.

This bill amends subdivision 2 of section 1809 of the vehicle and traffic law, as amended by section 3 of part M of Chapter 62 of the Laws of 2003 by eliminating the $100 cap on surcharges.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget to generate $9.9 million for the General Fund in 2009-10 and thereafter. 

Effective Date:

This bill takes effect on the ninetieth day after it becomes law. 

Part J – Extend provisions relating to the Motor Vehicle Financial Security Act

Purpose:

This bill extends certain provisions relating to the Motor Vehicle Financial Security Act.  A portion of the revenues from the penalties assessed for lapsed insurance coverage are deposited in DMV's Compulsory Insurance fund, which supports DMV's efforts to ensure that motorists are properly insured.

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

This bill extends certain provisions relating to the Motor Vehicle Financial Security Act, which requires motorists to maintain vehicle insurance at all times. DMV’s Compulsory Insurance program is funded by the fines/penalties for driving uninsured. This program’s mission is to ensure driver safety.

This bill extends provisions of Vehicle and Traffic Law relating to motor vehicle liability insurance, financial security, criminal acts and certain penalties for non compliance.  They are set to expire June 30, 2009. This bill would extend the provisions for two years until June 30, 2011.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget to generate $26 million in 2009-10 and thereafter.

Effective Date:

This bill takes effect March 1, 2009.

Part K – Conform Vehicle and Traffic Law with federal requirements governing operators of commercial motor vehicles

Purpose:

This bill conforms Vehicle and Traffic Law to the provisions of the Federal Motor Carrier Safety Improvement Act of 1999 (MCSIA) that governs operators of commercial motor vehicles.  Failure to enact this bill would result in the loss of $31 million in Federal highway funds. 

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

The Federal Motor Carrier Safety Administration (FMCSA) conducted an audit in April of 2006 to assess the Department’s compliance with MCSIA.  This bill addresses the deficiencies noted in the audit and is necessary to avoid the loss of highway funding and the potential for decertification.  In addition, pursuant to the Safe Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (known as SAFETEA-LU), enacted in 2005, the FMCSA has promulgated additional regulations to modify the Motor Carrier Safety Improvement Act (MCSIA) requirements.  On July 5, 2007, FMCSA published a final rule that revised the penalties for out of service violations and for employers who permit violations of railroad crossing laws.  Failure to comply with SAFETEA-LU provisions shall also result in the loss of Federal highway funding.  This bill also addresses these requirements.

On June 17, 2008, the FMCSA Administrator notified the Governor that New York State is in “substantial non-compliance with Title 49, Code of Federal Regulations (CFR) Part 384 Subpart B- Minimum Standards for Substantial Compliance by States.”  The letter stated:

“New York will lose up to 5 percent of its Federal-aid highway funds on October 1, 2009, unless, prior to this date, legislation is passed and signed into law that provides the State with authority to enforce all the requirements identified in this letter.”

This bill resolves the remaining deficiencies as identified by FMCSIA.

Section 1 amends 201(1)(i)(ii)(2)(A) of the Vehicle and Traffic Law to clarify that out of service violations are promulgated by the Department of Transportation, not DMV.

Section 2 amends section 501(2)(b)(ii) of such law to provide that no person shall be issued a hazardous materials endorsement unless such person meets all Federal requirements for such an endorsement.

Sections 3 and 4 amends subdivision 2 of section 501 and section 4 of section 501-a of such law to provide that the term “emergency operation” applies to driving to and from an emergency service.

Section 5 amends paragraphs (a) and (b) of subdivision 2 of section 510-a of such law to provide that the revocation period for leaving the scene of an accident shall be a minimum of one year (three years if hazardous materials is transported in the vehicle) where such offense is committed by a Commercial Driver's License (CDL) holder.

Section 6 amends paragraphs (a) and (b) of subdivision 3 of section 510-a of such law to clarify that the serious violations that trigger a commercial driver’s license sanction must all be committed within the specified periods of time set forth in such paragraphs.

Section 7 amends subparagraphs (i) and (ii) of paragraph (d) of subdivision 3 of section 510-a to increase the suspension periods for operating an out of service commercial motor vehicle.

Section 8 amends section 510-a(6) of such law to provide that a person who does not hold a CDL but who commits certain disqualifying offenses in a commercial motor vehicle shall be subject to the same license sanctions as if such person held a CDL.

Section 9 amends subparagraphs (v) and (vi) of paragraph (d) of subdivision 2 of section 140 of the Transportation Law, and add a new clause (c) to subparagraph (v), to establish fines for: drivers violating an out of service order, employers who permit operation of a vehicle that has been placed out of service, and for employers who knowingly allow, require, permit or authorize a person to violate state, federal or local laws governing railroad grade crossings.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget to ensure the State does not lose $31 million in federal highway funds during the 2009-10 fiscal year.  

Effective Date:

This bill takes effect immediately, provided that bill sections 7 and 9 take effect 60 days after enactment. 

Part L – Add a new $50 fee for each book of pre-licensing classroom certificates (MV-278) issued to driving schools

Purpose:

This bill would create a $50 fee for each book of fifty pre-licensing classroom certificates (MV-278) issued to driving schools.  A certificate is awarded to each student upon successful completion of the non-Commercial Driver’s License (CDL) pre-licensing safety course.  The bill states that the fee shall be paid by the driving schools and not charged to a person who takes the course. 

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

The State is facing a significant budget deficit and these certificates have previously been provided to driving schools at no cost. 

This bill amends subdivision 4 of section 502 of the Vehicle and Traffic Law by adding a new paragraph to define a new fee of one dollar per pre-licensing certificate (translates to $50 per book of 50 certificates) to be paid by the driving school and not charged to a person who takes the course. 

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget to generate $500,000 for the General Fund in 2009-10 and thereafter.    

Effective Date:

This bill takes effect on the ninetieth day after it becomes law. 

Part M – Extend provisions for collecting surcharges on traffic violations

Purpose:

This bill would extend for two years the provisions for collecting State surcharges on traffic violations.  These provisions expire on September 1, 2009.  This bill will extend these provisions for two years until September 1, 2011. 

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

This bill would extend for two years the provisions for collecting State surcharges on traffic violations.  The authority to collect these surcharges has been extended every two years since first enacted in 1991.  In total there are nine distinct State surcharges for traffic violations.  The most common surcharge is $60 for moving violations.  Revenues generated by these surcharges support the State’s General Fund. 

Section 1 amends subdivision (p) of section 406 of chapter 166 of the laws of 1991, amending the Tax Law and other laws relating to taxes, as amended by section 13 of part C of chapter 56 of the laws of 2007 to extend for two years the provisions for collecting State surcharges on traffic violations. 

Section 2 amends subdivision 8 of section 1809 of the Vehicle and Traffic Law, as amended by section 14 of part C of chapter 56 of the laws of 2007 to extend the provisions for collecting State surcharges on traffic violations. 

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget because absent this extension, the State would lose approximately $80 million in revenue. 

Effective Date:

This bill takes effect March 1, 2009. 

Part N – Authorize the Commissioner of Motor Vehicles to replace the Non-Commercial Driver License written examination with completion of either a 5-hour pre-licensing course or a driver education course

Purpose:

This bill would authorize the Commissioner of Motor Vehicles to replace the written examination for a non-Commercial Driver’s License (CDL) with either a 5-hour pre-licensing course or a driver education course.

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

This bill would allow the Commissioner of Motor Vehicles to accept completion of either the 5-hour pre-licensing course or a driver education course instead of the non-CDL written permit test (known as the knowledge test).  This change saves the Department resources and allows the redeployment of staff to more critical customer service areas.  The CDL knowledge test would continue to be offered by DMV. 

Section 1 amends subdivision 3 of section 502 of the Vehicle and Traffic Law, to remove the requirement that DMV offer the knowledge test as a prerequisite to obtain a non-CDL learner’s permit.  This section authorizes a learner’s permit to be issued if an applicant has successfully completed a pre-licensing course or a driver education course approved by the State Education Department and the Commissioner of Motor Vehicles. 

Section 2 amends subdivision 4 of section 502 of the Vehicle and Traffic Law, to remove the requirement that DMV offer a knowledge test as a prerequisite to obtain a non-CDL learner’s permit but authorizes a learner’s permit to be issued if an applicant has successfully completed a pre-licensing course or a driver education course approved by the State Education Department and the Commissioner of Motor Vehicles.  This section also allows the Commissioner of Motor Vehicles, at his or her discretion, to prescribe by regulation that the pre-licensing and driver education courses include a written test as a requirement to receiving a course completion certificate.  This section also requires an applicant for a commercial driver’s license to pass a knowledge test prescribed by the Commissioner of Motor Vehicles. 

Section 3 repeals paragraph (g) of subdivision 4 of section 502 of the Vehicle and Traffic Law.  This section currently allows the Commissioner to waive the requirement for a knowledge test for those applicants who hold a valid or renewable driver’s license issued by another jurisdiction or the United States government.  This section is no longer required because applicants with a valid license issued by another jurisdiction are not required to take the pre-licensing or driver education course. 

Section 4 amends paragraph (a) of subdivision 2 of section 503 of the Vehicle and Traffic Law to remove subparagraph (i) that allows an applicant to take the non-CDL knowledge test twice for a single fee.  This section allows the department to charge a new application fee for applicants of CDL permits if they fail the written test. 

Section 5 amends subparagraph (ii) of paragraph (b) of subdivision 2 of section 503 of the Vehicle and Traffic Law to remove the language pertaining to a knowledge test and requires completion of either a pre-licensing course or a driver education course prior to receiving a permit or license.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget to generate $1.4 million in savings for 2009-10 and thereafter.  

Effective Date:

This bill takes effect on the ninetieth day after it becomes law.

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

Purpose:

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

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

This bill:

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

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

Section 1 of part M of Chapter 59 of the laws of 2007 changed the effective date of these provisions from April 1, 2007 to April 1, 2008.  This bill includes an effective date change to April 1, 2009, and makes additional corrections.

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

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget to clarify CPFP reporting requirements and appropriation content.

Effective Date:

This bill takes effect immediately.

Part P – Make permanent certain revenues to the Dedicated Highway and Bridge Trust Fund

Purpose:

This bill allows the State’s Dedicated Highway and Bridge Trust Fund (DHBTF) and Dedicated Mass Transportation Trust Fund (DMTTF) to continue to collect certain DMV and other revenues originally associated with the 2003 budget year and the 2005-10 capital plans.  These include approximately $275 million annually of title fees, data sales fees, certificate of sale fees, transportation/transmission taxes, and former transportation safety account revenues.

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

This is current law that must be extended to enable the DHBTF and the DMTTF to continue collecting various DMV and other revenues that were initially increased and directed to the DHBTF in 2003, some of which were again amended (increased and directed to the DHBTF and the DMTTF) in 2005.  These Funds pay for operational expenses and capital costs of the State's transit system, Department of Transportation, and Department of Motor Vehicles.

While the Legislature enacted a sunset date, the fiscal crisis necessitates the continuation of these fee increments for the foreseeable future.  This bill amends Section 13 of Part U1 of Chapter 62 of the Laws of 2003, as most recently amended by Section 1-b of Chapter 63 of the Laws of 2005 (which extended and increased the 2003 fees), to permanently extend the two Funds' ability to collect and utilize these revenues.

Absent this legislation, the DHBTF and the DMTTF would lose approximately $275 million in annual revenues effective March 31, 2010. 

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget because failure to do so would impair the ability to fund the State's transportation programs.

Effective Date:

This bill takes effect on March 1, 2009.

Part Q – Increase food inspection penalties for violations which represent a risk to public health

Purpose:

This bill increases the maximum penalties which may be imposed for critical health deficiency findings made during inspections of food and other businesses, for the purpose of increasing compliance with statutes and regulations.

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

This bill amends Agriculture and Markets Law (AML) §39 to increase the maximum penalty on initial critical health deficiency findings from $300 to $1,000, and from $600 to $2,000 for each subsequent finding, and amends AML §40 to increase the maximum penalty from $200 to $1,000 for the first critical health deficiency finding related to a rule or order of the Department of Agriculture and Markets, and from $400 to $2,000 for the second and each subsequent finding.

This proposal allows the Department to increase penalties for health violations for the first time since 1990 (AML §39) and 1968 (AML §40). These increased penalties reflect the increase in the cost of operating a food-related business, and therefore are intended to enhance compliance.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget because $1.2 million in additional penalty revenues is included in the Executive Budget Financial Plan.

Effective Date:

This bill takes effect immediately.

Part R – Extend for one year the funds distribution formula for the Community Services Block Grant Program

Purpose:

This bill extends for one year the distribution formula for the Community Services Block Grant Program.

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

Executive Law §159(i), which provides for the distribution formula for the Federal Community Services Block Grant (CSBG) Program, is scheduled to expire on September 30, 2009.  Historically, this statute has been extended annually to authorize the Department of State (DOS) to distribute Federal grant awards to community action agencies. 

Budget Implications:

The DOS has administered the Community Services Block Grant Program since 1982.  The Department's authority to distribute CSBG funds is predicated upon the receipts of funding from the Federal government.  The Department anticipates continued Federal funding for the CSBG Program and the State Financial Plan assumes these funds will be disbursed during the 2009-10 State Fiscal Year.  Therefore, enactment of this bill is necessary to implement the 2009-10 Executive Budget.

Effective Date:

This bill takes effect September 30, 2009.

Part S – Increase examination fees related to the licensure of disciplines regulated by the Department of State

Purpose:

This bill increases the examination fees associated with certain disciplines regulated by the Department of State (DOS). This bill is necessary to unify licensing statutes regulated and enforced by the Department of State.

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

Sections 1 through 13 of the bill amend the Executive Law, General Business Law, and the Real Property Law to increase examination fees related to professions licensed and regulated by DOS.  The exam fee increases proposed by this bill will align the Department's fee schedule for regulated professions with that of other states.

Section 14 of the bill establishes the effective date.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget because it would provide additional revenue of approximately $3.5 million in the 2009-10 Budget and beyond.

Effective Date:

This bill takes effect immediately.

Part T – Reduce the amount of real estate transfer tax revenue deposited into the Environmental Protection Fund

Purpose: 

This bill reduces the amount of Real Estate Transfer Tax (RETT) that is deposited into the Environmental Protection Fund (EPF) beginning in fiscal year 2009-10 from $287 million to $80 million.

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

This bill amends section 1421 of Tax Law to reduce the amount of Real Estate Transfer Tax (RETT) revenue that is deposited into the Environmental Protection Fund (EPF) beginning in fiscal year 2009-10 from $287 million to $80 million. Anticipated revenues from enactment of an expanded state returnable container act (the “Bottle Bill”) will be deposited into the EPF to replace a portion of these funds.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget.  Revenues from the enactment of the expanded Bottle Bill will replace a portion of the Real Estate Transfer Tax (RETT) revenues.  Any RETT receipts that remain after transfers to the Clean Water/Clean Air debt service account will be returned to the General Fund.

Effective Date:

This bill takes effect on immediately.

Part U – Authorize and direct the Comptroller to deposit to the General Fund a payment of up to $913,000 from the New York State Energy Research and Development Authority

Purpose:

This bill authorizes and directs the Comptroller to receive for deposit to the credit of the General Fund a payment of up to $913,000 from the New York State Energy Research and Development Authority (NYSERDA).

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

This bill authorizes and directs the Comptroller to receive for deposit to the credit of the General Fund a payment of up to $913,000 from NYSERDA from unrestricted corporate funds. The $913,000 transfer will help offset New York State's debt service requirements related to the Western New York Nuclear Service Center (West Valley).  Without this authorization, NYSERDA could not make this contribution.  Chapter 59 of the Laws of 2008 provided a similar one year authorization.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget because it authorizes NYSERDA to make these payments to the General Fund as contemplated in the financial plan.

Effective Date:

This bill takes effect on March 1, 2009.

Part V – Assess a fee upon the entry of a horse in New York State pari-mutuel races

Purpose:

This bill assesses a fee upon the entry of a horse in New York State pari-mutuel races. 

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

This bill amends the Racing, Pari-Mutuel Wagering and Breeding Law to provide additional revenue to support the operations of the State Racing and Wagering Board by assessing a fee upon the entry of a horse in pari-mutuel races throughout New York State. Additionally, this bill establishes penalty and interest provisions in the event of non-payment in a timely manner and provides the Racing and Wagering Board the authority to conduct audits of these receipts.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget since it would provide additional revenue of approximately $1 million to fund the operations of the Racing and Wagering Board.

Effective Date:

This bill takes effect 30 days after enactment.

Part W – Increase the maximum penalties for Insurance Law violations

Purpose:

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

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

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

Specifically, this bill: (1) increases fines and penalties for various violations of the Insurance Law; (2) authorizes the Superintendent of Insurance to issue cease and desist orders; and (3) increases the length of time that an individual, corporation, firm or association must wait to obtain a license after revocation.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget since the State Financial Plan assumes $1,000,000 in additional General Fund receipts as a result of the increased fines and penalties included in this bill.

Effective Date:

This bill takes effect immediately.

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

Purpose:

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

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

Chapter 393 of the Laws of 1994 provides UDC with the general power to make loans.  This authorization has been renewed annually and is currently set to expire on
July 1, 2009. 

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

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget, which assumes that UDC will provide certain economic development assistance through loans, rather than grants.  Absent this bill, the Corporation could not fund loans approved through the Metropolitan Economic Revitalization Fund.

Effective Date:

This bill takes effect April 1, 2009.

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

Purpose:

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

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

The bill authorizes NYSERDA to finance its research, development and demonstration and policy and planning programs with revenues from assessments on gas corporations and electric corporations.  Section 18-a of the Public Service Law authorizes the Department of Public Service to assess gas corporations and electric corporations for expenses related to these programs. This is an annual Article VII provision that was last enacted as Chapter 59 of the Laws of 2008.  Without this authorization, NYSERDA could not continue to implement necessary energy programs in the 2009-10 State fiscal year.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget because it authorizes the collection of assessments to fund NYSERDA’s research, development and demonstration, and policy and planning programs.  A $16.1 million appropriation is included in NYSERDA's budget for these energy programs.

Effective Date:

This bill takes effect on March 1, 2009.

Part Z – Require an appropriation in the Executive Budget for each fiscal year that reflects the value of assets transferred from the Power Authority of the State of New York (NYPA) to the state pursuant to a memorandum of understanding between NYPA and the state

Purpose:

This bill requires an appropriation to be included in the Executive Budget for specified fiscal years pursuant to a memorandum of understanding between NYPA and the State,

relating to an asset transfer between NYPA and the State.

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

This bill requires the inclusion of an appropriation in the Executive Budget for specified fiscal years that reflects the value of certain assets transferred from NYPA to the State pursuant to a memorandum of understanding between NYPA and the State.  It further provides that the Comptroller shall encumber the amount so appropriated before the end of the fiscal year for which such appropriation is made, and if for any of the fiscal years commencing during the period from April 1, 2009 until such time as the assets have been returned by the State an Executive Budget bill is not submitted which contains an appropriation of such amount, such amount appropriated and encumbered during the preceding fiscal year shall be payable to NYPA on the last day of June of such year.

Budget Implications:

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

Effective Date:

This bill takes effect immediately.

Part AA – Authorize the Battery Park City Authority to make contributions to the State Treasury

Purpose:

This bill authorizes the Battery Park City Authority (BPCA) to transfer up to $270 million to the General Fund.

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

Since its inception in 1968, the Battery Park City Authority has created a significant amount of development and cash flow resulting in substantial fund balances.  To achieve General Fund relief, the Executive Budget would require BPCA to transfer the excess funds to the General Fund. 

Budget Implications:

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

Effective Date:

This bill takes effect on March 1, 2009.

Part BB – Authorize the New York State Urban Development Corporation to make contributions to the State Treasury

Purpose:

This bill authorizes the New York State Urban Development Corporation (UDC) to transfer up to $60 million in excess funds received from the Port Authority of New York and New Jersey to the General Fund by March 3, 2009.  The Corporation would also be required to remit any additional payments received after March 1, 2009 from the Port Authority to the General Fund, subject to a plan approved by the Director of the Division of Budget.

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

Since 2003, $60 million has been held by UDC pursuant to provisions of the Public Authorities Control Board resolutions 04-UD-838A and 06-UD-900.  To achieve substantial General Fund relief, the Executive Budget would require UDC to transfer the excess funds and any additional payments to the General Fund. 

Budget Implications:

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

Effective Date:

This bill takes effect on March 1, 2009.

Part CC – Establish a new $50 million New York Growth, Achievement and Investment Strategy Fund

Purpose:

This bill establishes a new $50 million New York Growth, Achievement and Investment Strategy Fund to be administered by the New York State Urban Development Corporation.

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

This bill allows the State to make important financial contributions to support strategic industries across the State.  State funding will be targeted to firms in industries that facilitate significant job creation unlikely to take place without State financial assistance.

Project applications will be solicited from those industries categorized as manufacturing, financial services, agribusiness, high technology and biotechnology.  Priority will be given to projects that produce long-term employment creation or retention, and provide substantial economic benefit to the State of New York.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget, which assumes that a new New York Growth, Achievement and Investment Strategy Fund will be established.

Effective Date:

This bill takes effect March 1, 2009.

Part DD – Authorize the development of an economic development capital spending reduction plan and strategic reinvestment plan

Purpose:

This bill authorizes the Governor, the Senate Majority Leader, and Speaker of the Assembly to develop a $375 million economic development capital spending reduction plan.

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

Since 1997, nearly $6.8 billion has been authorized to support various economic development programs and projects.  To achieve substantial debt service savings, the Executive Budget would propose to freeze any new project approvals by ESDC and Dormitory Authority effective March 1, 2009 until such time as the Governor and legislative leaders had jointly identified savings.   Moreover, the bill would authorize select reinvestment of up to $275 million.  

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget, which assumes debt service savings that would be generated by this bill.

Effective Date:

This bill takes effect on March 1, 2009.

Part EE – Authorize the consolidation of the state’s economic development entities

Purpose:

This bill authorizes the elimination of the Department of Economic Development and the

Foundation for Office of Science, Technology and Innovation, and transfer of certain

functions to the New York State Urban Development Corporation.

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

This bill allows restructuring of the State’s economic development agencies to further

streamline and improve the delivery of economic development services, eliminate

duplicative administrative functions and save over $11 million in State taxpayer dollars.

Budget Implications:

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

Effective Date:

This bill takes effect March 1, 2009.

Part FF – Increase a Bond Issuance Charge

Purpose: 

This bill amends section 2976 of the Public Authorities Law to increase the rate of the Bond Issuance Charge (BIC) by twenty percent over existing levels. 

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

The existing BIC rate schedules were enacted in 2002, while central State agency operating costs have continued to increase. 

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget, which contemplates the receipt of $20 million in additional BIC revenues.

Effective Date:

This bill takes effect March 1, 2009.

Part GG – Eliminate the Northeastern Queens Nature and Historical Preserve Commission

Purpose:

This bill eliminates the Northeastern Queens Nature and Historical Preserve Commission and transfers its responsibilities to the Office of Parks, Recreation, and Historic Preservation. 

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

This bill eliminates the Northeastern Queens Nature and Historical Preserve Commission by repealing Chapter 919 of the Laws of 1973, and transfers all functions, powers, duties, obligations and assets of the Commission to the New York State Office of Parks, Recreation and Historic Preservation (Parks). 

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget because $122,000 in savings is included in the Executive Budget Financial Plan.

Effective Date:

This bill takes effect immediately.

Part HH – Eliminate the Hudson River Valley Greenway Communities Council and Hudson River Valley Greenway Heritage Conservancy and transfer liabilities, assets, and responsibilities of the Greenway, Council and Heritage Conservancy to the Department of State

Purpose:

This bill eliminates the Hudson River Valley Greenway Communities Council (“Council”) and Hudson River Valley Greenway Heritage Conservancy (“Heritage Conservancy”), reestablishes the Hudson River Valley Greenway (“Greenway”) in the Executive Law, and transfers liabilities, assets, and responsibilities of the Greenway, Council and Heritage Conservancy to the Department of State (DOS).

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

This bill repeals Article 44 of the Environmental Conservation Law, which established the Greenway and provided for the responsibilities of the Conservancy and Council, reestablishes the greenway in a new Article 42-a of the Executive Law, and transfers all liabilities, assets, and responsibilities of the Greenway, Council and Heritage Conservancy to DOS.

DOS would assume responsibility for establishing a voluntary regional compact among communities in the Greenway to enhance natural and cultural resource protection; regional sustainable development planning, economic development, public access, heritage education and smart growth.  Further, DOS would assume responsibility for the development of a trail system along the Hudson River from New York City to Waterford, Saratoga County.  Additional responsibilities assumed by DOS include the authority to: conduct studies related to the resources of the Hudson River Valley; develop new Greenway projects and planning; act as an interested party in environmental reviews, capital and long range plans of State agencies, and certain land use proceedings; promote the Greenway as a tourist destination; assist in the preservation of farmlands within the Greenway; and consult, cooperate with, and coordinate its activities with other interested State agencies with respect to Greenway activities.

Finally, this bill provides for the transfer of assets, liabilities, records, and, as determined by the Budget Director, appropriations and employees, from the Greenway, Council and Heritage Conservancy to DOS.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget, which assumes $939,000 in savings associated with transfer described above, and the elimination of the Council and Heritage Conservancy.

Effective Date:

This bill takes effect on March 1, 2009.

Part II – Increase food safety inspection and licensing fees, and require the licensure of seed labelers and distributors

Purpose:

This bill establishes new fees, increases license fees, increases existing food safety inspection fees to allow the State to recover more of the costs of program administration and inspections, and requires the licensure of seed labelers and distributors to ensure seed quality.

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

In order to recoup a greater portion of the costs of program administration and food safety inspection activities, this bill amends the Agriculture and Markets Law to establish new fees, increase license fees, and increase fees for various food safety inspection activities handled by the Department of Agriculture and Markets (Department) including inspection of retail food establishments, food processors, warehouses, slaughterhouses, rendering plants, feed distributors/manufacturers, and food salvagers. In particular, fees for retail food establishments will increase from $100 to $250 biennially, and fees for food processors and warehouses will increase from $200 to $400 biennially.  Fees for larger, complex food processors requiring multiple inspections per year will increase to $900.  In addition, the bill requires home processors to obtain a license and pay an annual fee of $50. Finally, this bill requires seed labelers and distributors to apply for a license before conducting business in the State, and establishes a biennial license fee of $100, plus a fee of $0.25 per $100 in gross annual dollar volume sales.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget, which assumes that $3.6 million in additional revenues from the new and increased fees will be deposited to the Consumer Food Services Account; and that $512,000 from seed labelers and dealers will be deposited to the Plant Industry Account. These revenues will enable a greater portion of the Department’s inspection and licensing activities to be financed through industry fees, thereby reducing General Fund costs.

Effective Date:

This bill takes effect immediately, except that section 4 takes effect 60 days after enactment.

Part JJ – Increase certain State Pollution Discharge Elimination System Program fees

Purpose:

This bill would amend the Environmental Conservation Law (ECL) to increase certain State Pollutant Discharge Elimination System (SPDES) program fees.

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

The SPDES permit fees for private, commercial and institutional (P/C/I) facilities, industrial facilities, stormwater, and concentrated animal feeding operations (CAFOs), have not been increased in several years. 

Individual SPDES program fees for P/C/I facilities were established in 1983 and were raised to their existing level in 1989.  Industrial fees have not been increased since 2003.  The general permit fee was established in 1988 and remains at its original level. The general permit for industrial stormwater was issued in 1993. The general permit for CAFOs was issued in 1999.

The proposed fee increases would raise revenues that would be used to enhance the Department of Environmental Conservation’s ability to inspect and monitor regulated facilities, including major industrial and commercial facilities and CAFOs.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget.  Revenues of $5 million would be deposited into the Environmental Regulatory Account, which would otherwise end the 2009-10 State fiscal year with an $8.3 million deficit.

Effective Date:

This bill takes effect March 1, 2009.

Part KK – Establish a trout and salmon stamp

Purpose:

This bill would amend the Environmental Conservation Law to establish a trout and salmon stamp and require all persons fishing for trout and salmon (e.g., trout, lake trout, landlocked salmon, and Pacific salmon) to possess such stamp.

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

A trout and salmon stamp would generate additional revenues to support the Conservation Fund, which funds the Department of Environmental Conservation’s management of New York’s trout and salmon resources, as well as the operation of the Department’s hatchery system.  Approximately one-third of all freshwater fishing activity in New York is for trout and salmon. Fish reared in Department hatcheries and stocked into New York waters sustain a significant amount of resident and non-resident fishing activity in New York.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget.  Fully effective revenues of $4 million would be deposited into the Conservation Fund, which would otherwise have a negative balance of $9.8 million.

Effective Date:

This bill takes effect of October 1, 2009.

Part LL – Establish a recreational marine fishing license

Purpose:

This bill would amend the Environmental Conservation Law (ECL) to establish a recreational marine fishing license, and require all persons fishing in the marine and coastal district, or for migratory fish of the sea in any waters of the state, to possess such a license.  The marine fishing license would also serve as a registry of New York marine anglers and would fulfill requirements of the National Saltwater Angler Registry and State Exemption Program. The license fee would be $19 for residents and $40 for non-residents.

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

On January 12, 2007, the Federal Magnuson-Stevens Fishery Conservation and Management Reauthorization Act of 2006 was enacted, requiring the Secretary of Commerce (SOC) to make improvements to recreational fisheries surveys, including implementing a national saltwater angler and for-hire vessel registry by January 1, 2009.  The SOC may exempt from the Federal registration requirements anglers and vessels that are registered or licensed by a state if the state provides sufficient identification and contact information for use in national recreational surveys.

If New York does not establish a recreational marine license, New Yorkers who wish to fish will need to register with the National Marine Fisheries Service (NMFS) beginning January 1, 2009, and likely pay a fee for registration beginning January 1, 2011.  The proposed marine fishing license will satisfy the requirements of the registry program; therefore, New Yorkers will not be inconvenienced by having to register with NMFS.  Instead, they could purchase a license through the Department of Environmental Conservation (DEC) Automated Licensing System (DECALS) and DEC would provide the required information to NMFS.  In addition, the New York marine fishing license fees would be deposited into the Conservation Fund to support resource management in New York, rather than be payable to the NMFS, and would result in additional Federal aid for New York programs.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget; moreover, this bill would satisfy a Federal requirement to establish a Marine Fishery registry.  Fully effective revenues of $6 million would be deposited into the Conservation Fund, which would otherwise have a negative balance of $9.8 million.

Effective Date:

This bill takes effect October 1, 2009.

Part MM – Authorize the Department of Public Service (DPS) to streamline its processes and improve administrative efficiency and prioritize resources

Purpose:

This bill authorizes the Public Service Commission (PSC) to streamline the process for confirming cable franchises, refrain from the application of telecommunications and cable regulation, and distribute PSC orders by email, and modifies shared meter requirements, which will allow PSC and DPS to improve administrative efficiency and more effectively prioritize resources.

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

The bill streamlines the process for confirming cable franchises, renewals and amendments granted by municipalities unless the PSC determines that the public interest requires a full review and written order.

The bill authorizes the PSC, after notice and hearing, to refrain from applying certain regulatory provisions to telephone corporations and services, upon a determination that application of such provisions is not necessary to ensure just and reasonable rates, charges and practices, and consumer protection; and upon a determination that it will serve the public interest, including, but not limited to, promotion of competitive market conditions and increased competition among telephone corporations. 

The bill allows PSC to serve orders by email with the consent of affected persons. 

The bill exempts buildings with three or fewer dwelling units from the 12-month shared metering charge and prohibits utilities from accepting an application from a non-owner tenant to become a customer of record for utility service provided through a single meter. 

The bill allows PSC and DPS to improve administrative efficiency and more effectively prioritize resources, which will generate personal service and non-personal service savings.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget, which assumes that PSC/DPS would reallocate resources to improve administrative efficiency.

Effective Date:

This bill takes effect immediately.

Part NN – Increase the utility assessment cap imposed by section 18-a of the Public Service Law, establish a temporary state energy and utility service conservation assessment, and authorize aggregate energy purchases for state agencies and other entities by the New York Power Authority

Purpose:

This bill increases the cap imposed by Section 18-a of the Public Service Law (PSL) from 1/3 of one percent to one percent of a public utility’s gross intra-state utility revenues, for purposes of: (1) financing Public Service Commission (PSC) and Department of Public Service (collectively, “DPS”) activities; (2) covering the cost of expenses incurred by other State agencies that provide DPS support and energy management services; and (3) covering the cost of utility services purchased by the State (collectively, the “Utility and Utility Service Assessment”).

This bill also establishes a State energy and utility service conservation assessment on utility entities, capped at two percent of a utility entity’s gross intrastate utility revenues less the amount such entity is assessed for the PSL § 18-a Utility and Utility Service Assessment.

In addition, this bill authorizes the Office of General Services (OGS), in partnership with the Power Authority of the State of New York (NYPA), to make:  cost-effective aggregate purchases of electricity and renewable energy; renewable energy credits or attributes, and engage in energy-related and resource conservation projects; and programs and services available for State agencies and other entities.

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

This bill increases the cap established by PSL §18-a, from 1/3 of one percent to one percent of a public utility’s gross intra-state utility revenues, that applies to regulated entities under PSL § 18-a, which also includes Energy Service Companies (ESCOs). In addition to the DPS expenses, eligible expenses covered under the Utility and Utility Service Assessment will include: (1) an amount equal to twenty percent of DPS expenses to cover the direct and indirect costs and expenses of other State agencies that administer, facilitate and support policies and programs that regulate or oversee jurisdictional utility operations (“department support expenses”); (2) costs and expenses of State energy planning, procurement, monitoring, and management, and efficiency activities and services (“energy management expenses”); and (3) the costs of the State’s utility services (“State utility service expenses”). 

This bill also authorizes OGS to partner with NYPA to facilitate cost-effective aggregate purchases of electricity and renewable energy, renewable energy credits or attributes, and energy-related and resource conservation projects, programs and services on behalf of State agencies and other entities in order to realize savings from bulk purchases that can be passed on to the end-user and, ultimately, taxpayers.

This bill also imposes a temporary energy and utility service conservation assessment on specified utility entities capped at two percent of a utility entity’s gross intrastate utility revenues less the amount such entity is assessed for the PSL §18-a Utility and Utility Service Assessment. The temporary assessment will expire March 31, 2012, as it is expected by this time that the OGS and NYPA partnership will result in significant taxpayer savings.

This bill raises the minimum gross revenue assessment threshold from $25,000 to $500,000 and the minimum assessment amount from $10 to $200.

Increasing the utility assessment cap will allow DPS to meet its core statutory and regulatory requirements, and defray the costs incurred by State agencies that provide administer, facilitate and support policies and programs that regulate or oversee jurisdictional utility operations, and that provide energy planning, procurement, monitoring, management, and efficiency services for the State.

Aggregated energy purchases will help agencies leverage tight fiscal resources through economies of scale. Moreover, imposition of a State energy and utility service conservation assessment will provide added incentive to encourage consumers, through March 31, 2012, to conserve the use of energy and other services provided by utility entities thereby conserving such resources.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget because it authorizes the collection of revenue to finance costs and expenses related to DPS, department support, and energy management, defray the cost of utility services purchased by the State, and fund other activities. This bill will generate $637 million in net revenues.

Effective Date:

This bill takes effect immediately; provided, however, that the energy and utility service conservation assessment provided for in Section 3 of the bill takes effect March 1, 2009 and sunsets on March 31, 2012.

Part OO – Increase the civil penalty for repair shops, inspection stations, certified inspectors and automobile dealers

Purpose:

This bill would increase the civil penalty for repair shops, inspection stations, and dealers, who falsify safety and emission inspections or falsify vehicle repairs, from a maximum of $350 per violation to a minimum of $350 for the first violation, $500 for the second violation and $1,000 for the third violation.  This bill will also increase the civil penalty for dealers from a maximum penalty of $1,000 to a maximum of $1,500. 

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

The State is facing a significant budget deficit and these fines have not been increased since 1993.  This revised fine structure also provides guidance to safety hearing judges to determine the appropriate fine level depending upon the number of violations.  Prior to this change, a judge could only fine a repair shop a maximum of $350, even if it was the repair shop’s third fine in recent months. 

This bill amends subdivision (h) of section 303 of the Vehicle and Traffic Law; paragraph (b) of subdivision 2 of section 398-e of the Vehicle and Traffic Law, and subdivision 12 of section 415 of the Vehicle and Traffic Law to increase the civil penalty fine for a dealers and transporters from a maximum of $350 per violation to a minimum of $350 for the first violation, $500 for the second violation and $1,000 for the third violation.   This bill will also set a maximum penalty $1,500. 

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget to generate $721,000 for the General Fund in 2009-10 and thereafter. 

Effective Date:

This bill takes effect on the ninetieth day after it becomes law. 

Part PP – Increase the license termination fee, the license reinstatement fee, and the scofflaw termination fee

Purpose:

This bill would increase the license suspension fee from $25 to $50, the license reinstatement fee from $50 to $100, the license suspension fee for driving after consuming alcohol from $100 to $200, and the fines for failing to appear for ticket or pay a summons or fine from $35 to $70.

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

The State is facing a significant budget deficit and these fees have not been increased since 1992.  The license suspension termination fees and the license reinstatement fees are collected by state and county motor vehicle offices. The scofflaw suspension termination fees are collected by the state and local courts and tribunals.  All fees will be deposited to the General Fund.

Section 1 amends paragraph (h) of subdivision 2 of section 503 of the Vehicle and Traffic Law, as amended by chapter 196 of the laws of 1996 to increase the license reinstatement fee from $50 to $100. 

Section 2 amends paragraph (j) of subdivision 2 of section 503 of the Vehicle and Traffic Law, as amended by chapter 196 of the laws of 1996 to increase the drivers license suspension fee from $25 to $50 and the suspension fee for driving after consuming alcohol from $100 to $200. 

Section 3 amends subparagraph (i) of paragraph (j-1) of subdivision 2 of section 503 of the Vehicle and Traffic Law, as amended by chapter 62 of the laws of 2003 to increase the fee for suspension resulting from a failure to answer an appearance ticket or a summons or failure to pay a fine from $35 to $70. 

Section 4 amends paragraph (j-1) of subdivision 2 of section 503 of the Vehicle and Traffic Law to add a new subparagraph which designates fifty percent of the scofflaw termination fees to be deposited to the general fund. 

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget to generate $16.1 million for the General Fund in 2009-10 and thereafter.  The Department collects approximately $3 million annually in license suspension termination fees, $830,000 annually in license reinstatement fees and $14 million in scofflaw suspension termination fees.  There are an average of 121,000 individuals a year that pay the license suspension termination fee, 16,600 a year that pay the license reinstatement fee, and another 400,000 that pay the scofflaw suspension termination fee. 

Effective Date:

This bill takes effect on the ninetieth day after it becomes law. 

Part QQ – Dedicate the local share of state receipts from the gaming facility in the County of Erie to the City of Buffalo

Purpose:

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

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

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

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget, which assumes a $1.2 million payment to the City of Buffalo for the local share of revenue generated by the Seneca Buffalo Creek Casino. 

Effective Date:

This bill takes effect March 1, 2009.

Part RR – Extend for one year the authority of the Secretary of State to charge increased fees for expedited handling of documents

Purpose:

This bill extends for one year, provisions of law permitting the Secretary of State to charge increased fees for the expedited handling of documents issued by or requested from the Department's Division of Corporations.  The increased fees for expedited handling are necessary to reimburse the Department of State for increased administrative costs associated with expedited handling.

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

The Executive Law currently authorizing the Secretary of State to charge increased fees for expedited handling expires March 31, 2009.  Historically this statute has been extended annually to coincide with the enactment of the Budget. 

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget.  The 2009-10 Executive Budget assumes that expedited handling fees will be enacted since the costs associated with expedited handling are greater than traditional requests.  Failure to enact this legislation will result in the Department bearing additional expenditures with no additional revenue available to support these costs.

Effective Date:

This bill takes effect March 1, 2009.

Part SS – Expand the state’s “Bottle Bill” to cover additional beverage containers, and to provide for the return of unclaimed deposits on beverage containers to the state for deposit into the Environmental Protection Fund

Purpose:

This bill amends the Environmental Conservation Law (ECL), the Economic Development Law and the State Finance Law to expand the State’s “Bottle Bill” to cover additional types of beverage containers, and to provide for the return of unclaimed deposits on beverage containers to the State for deposit into the Environmental Protection Fund (EPF).

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

This bill expands the State’s Bottle Bill statute and redirects unclaimed deposits to the EPF.  Specifically, the Bottle Bill is expanded to cover additional beverage containers, with exceptions for liquor, wine, infant formula, milk, milk substitutes, nutritional supplements, medications, concentrates and soups.  Additionally, the bill establishes a mechanism by which deposit initiators (generally, bottlers or distributors) would be required to pay unclaimed deposits to the Department of Tax and Finance quarterly.  These moneys would be deposited in the EPF.  The bill also increases the industry "handling fee" from two cents to three-and-a-half cents.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget.  Moneys from unclaimed deposits will be deposited in the EPF to support ongoing environmental programs.  Under current law, unclaimed deposit revenues are kept by the industry.  Bottle Bill revenues from unclaimed deposits are estimated at $118 million annually.

Effective Date:

This bill takes effect immediately, provided however, sections two, three and eight of the bill take effect March 1, 2009; sections four, five, six, seven, nine, eleven and thirteen of the bill take effect May 1, 2009; and the requirements to make deposits, file reports and make withdrawals and payments under ECL § 27-1012, as added by section eight of the bill, with respect to containers defined as beverage containers prior to March 1, 2009, shall first apply to the period beginning on March 1, 2009 and ending May 31, 2009, and with respect to all other beverage containers shall first apply to the period beginning on May 1, 2009, and ending May 31, 2009, provided that such other beverage containers will not be required to have a refund value as required under ECL § 27-1005 until May 1, 2009.  However, no refunds shall be paid prior to the due date for reports beginning on September 1, 2009.

Part TT – Clarify the authority of the Office of Parks, Recreation and Historic Preservation with regard to retail sales

Purpose:

This bill would amend the Parks, Recreation and Historic Preservation Law to clarify the authority of the Office of Parks, Recreation and Historic Preservation(OPRHP)to sell merchandise, goods, commodities or food, and that proceeds from such sales should be deposited into the patron services account of the miscellaneous special revenue fund to support park maintenance and general operations.

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

State parks and historic sites provide opportunities for public retail sales activities, including the provision of merchandise, goods, commodities and food service. Such sales provide both a valuable service and amenity to park visitors, and generate revenue to support operations and maintenance of park facilities.  Such activities are generally provided by private concessionaires, under contract.  However, it does not always serve the public interest to use private concessionaires, and such concessionaires are not always available to provide needed services. In such instances, OPRHP will provide the services. The net proceeds from the retail sales initiative would be dedicated to support park and historic site maintenance and operations.

Budget Implications:

Enactment of this bill is necessary to implement the 2009-10 Executive Budget.  This bill would clarify the Agency’s ability to generate revenue for maintenance and operating costs through retail sales. 

Effective Date:

This bill takes effect 120 days after enactment.

Part UU – Recover the cost of centralized state services provided on behalf of industrial development agencies

Purpose:

This bill would authorize the State to assess and collect cost recovery fees from industrial development agencies (IDAs) up to an aggregate amount of $5 million, for central government services provided on their behalf.

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

This bill would include IDAs in the State's cost recovery assessment and would limit the aggregate assessment to $5 million.  Enactment of this bill is necessary to ensure that IDAs adequately reimburse the State for services provided on their behalf.

Budget Implications:

This bill would include IDAs in the State's cost recovery assessment to generate an additional $5 million in annual revenues to the credit of the General Fund in order to meet the State’s projected budgetary gaps for 2009-10 and beyond.

Effective Date:

This bill takes effect March 1, 2009.

Part VV – Impose fees related to certain activities conducted by the Department of Taxation and Finance and prohibit tax return preparers and software companies from charging separately for electronic filing of New York tax documents

Purpose

This bill would impose fees for certain activities, to prohibit tax return preparers and software companies from charging separately for electronic filing of New York tax documents, and require the registration of all tax return preparers preparing New York tax returns and reports for compensation.

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

The fee provisions of this bill are necessary to compensate the Department of Taxation and Finance (DTF) for use of its time and limited resources to accommodate taxpayer convenience or resolve taxpayer problems. The provision relating to software companies and tax return preparers is intended to encourage taxpayers to file returns electronically by making it unlawful for tax return preparers and software companies to charge a separate fee for e-filing New York tax documents.

The tax return preparer provisions of the bill represent a first effort to establish communication between tax preparers and DTF, thereby setting the stage for future cooperative development of standards to enhance the quality of tax preparation services in New York State.

Section 1 of the bill amends subdivision (a) of §3010 of the Tax Law to impose a $75 fee on persons entering into installment payment agreements with the Department of Taxation and Finance.

Section 2 of the bill amends subdivision (c) of §3010 of the Tax Law to impose a $75 fee on persons whose installment payment agreements must be altered or modified, as well as on persons whose installment payment agreements have been terminated but are subsequently being reinstated.

Section 3 of the bill adds a new §30 to the Tax Law to impose a bad check or failed electronic funds withdrawal fee of $50 in the event a taxpayer’s payment of tax by check, money order or electronic funds withdrawal is returned without payment.

Section 4 of the bill amends paragraph 10 of subsection (g) of §658 of the Tax Law to impose a paper filing fee of $10 on certain individuals and joint filers who do not electronically file personal income tax documents that the Commissioner of Taxation and Finance has authorized to be filed electronically. Individual filers with New York adjusted gross incomes of more than $15,000, and husbands and wives filing jointly with New York adjusted gross incomes of more than $30,000, would be liable for the fee in each instance in which a personal income tax document that the Commissioner has authorized to be filed electronically is not so filed. In addition, this section of the bill conforms the Personal Income Tax preparer mandate definitions to the definitions contained in the broader e-file/e-pay mandate prescribed by §29 of the Tax Law.

Section 5 of the bill adds a new §31 to the Tax Law to prohibit tax return preparers and software companies from charging separately for electronic filing of New York tax documents. New §31 also makes it unlawful for a software company to offer one version of its software product imposing a separate charge for electronic filing of New York tax documents and another version of its software product that does not. A civil penalty of $500 is imposed for a first violation. The penalty is increased to $1000 for each subsequent violation. The penalty must be paid to the Commissioner of Taxation and Finance upon notice and demand, and is to be assessed, collected, and paid in the same manner as taxes Article 27 of the Tax Law.

Section 6 of the bill adds a new §32 of the Tax Law to require the electronic registration of tax return preparers with the Department of Taxation and Finance (DTF). Tax return preparers are defined as individuals who, for compensation, prepare a substantial portion of New York tax returns or reports for filing with DTF.  Upon registration, tax return preparers will receive a tax preparer registration certificate. They will also receive a unique identifying number provided by DTF that must be included, along with the tax return preparer’s signature, on tax returns or reports that must be signed.  Tax return preparers will be required to electronically re-register with DTF annually.

A commercial tax return preparer is a tax return preparer who prepared ten or more New York tax returns or reports in the preceding calendar year, and will prepare at least one New York tax return or report during the current calendar year, or 2) prepared fewer than ten New York tax returns or reports in the preceding calendar year but will prepare ten or more New York tax returns or reports for the current calendar year.  In addition to registering, commercial tax return preparers must electronically pay an annual fee of $100 to DTF in order for their registration or re-registration to be complete. 

Penalties are added for tax return preparers who fail to register or re-register, commercial tax return preparers who fail to pay the annual fee, tax return preparers who fail to sign a New York tax return or report when required, tax return preparers who fail to include the unique identification number assigned by DTF on any New York tax return or report that requires the tax return preparer’s signature, and tax return preparers or commercial tax return preparers who employ as a tax return preparer employing an individual who is not registered with DTF.

If a tax return preparer is not registered, or if a commercial tax return preparer has not paid the annual fee, then the tax return preparer or commercial tax return preparer, as applicable, cannot represent his or her clients before the Division of Taxation or the Division of Tax Appeals. 

Section 7 of the bill would repeal paragraphs 1 and 2 of subsection (u) of §685 of the Tax Law.

Section 8 of the bill would amend subdivision (e) of §372 of the General Business Law to provide a method of collection and enforcement of the penalties provided by this section. 

Section 9 of the bill would require the Commissioner of Taxation and Finance to create a Task Force to examine the need for additional changes to the program for regulating tax return preparers prescribed by new section 32 of the Tax Law. The Task Force would prepare a report making recommendations to the Commissioner of Taxation and Finance and the Governor regarding the scope of the regulatory scheme and setting appropriate qualifications, including, but not limited to, minimum educational qualifications and continuing educational requirements for tax return preparers.  The report would be due no later than March 31, 2012. The Commissioner of Taxation and Finance would be authorized to promulgate regulations to implement any or all of the recommendations made by the task force.

Budget Implications

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

Effective Date

The bill would take effect immediately, provided, however, that section 4 of the bill would apply to authorized tax documents required to be filed for tax years beginning on or after January 1, 2009, and section 6 of the bill would apply to tax return preparers filing returns on or after December 31, 2009.

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