Overview of Senate and Assembly Budget Bills

Construction / Transportation

Staff Contact: Frank Kerbein

Makes permanent the use of the design-build construction method on public projects, and expands its use to all State agencies and public authorities; requires projects over $50 million to prepare a project labor agreement feasibility study (S.2008/A.3008, Part B).

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Rejects Executive Budget proposal.

Directs $3.5 billion to the DOT capital program in 2015-16(S.2004/A.3004, Capital Projects)

  • Senate: Directs $4.8 billion to DOT capital projects.
  • Assembly: Directs $4.9 billion to DOT capital projects.

Permanently extends the transfer of approximately $235 million in revenue from the DMV to the Dedicated Highway and Bridge Trust Fund (DHBTF) and the Dedicated Mass Transportation Trust Fund (DMTTF); (S.2008/A.3008, Part A.)

  • Senate: Accepts Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Creates a new Dedicated Infrastructure Investment Fund where part of the proceeds of the windfall legal settlements will be used for infrastructure projects (S.2005/A.3005, Part O).

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal, adding a Buy America provision and subjecting the fund to Labor law Article 8 provisions (prevailing wage, project labor agreements etc.).

Authorize the Department of Transportation and the New York State Thruway authority to enter into agreements to provide mutual aid through the sharing of employees, services and resources (S.2008/A.3008, Part G).

  • Senate: Accepts Executive Budget proposal.
  • Assembly: Rejects Executive Budget proposal.

Streamlines the registration process of vehicles weighing over 80,000 pounds by eliminating the need for duplicate visits to the DMV and DOT for registration and overweight permits (S.2008/S.3008, Part H).

  • Senate: Accepts Executive Budget proposal.
  • Assembly: Rejects Executive Budget proposal.

Aligns New York State law with federal requirements regarding commercial learners’ permits, retaining $43 million in federal highway funding (S.2008/A.3008, Part I).

  • Senate: Accepts Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Doubles fines and penalties for toll evasion on all roads, bridges and tunnels operated by public authorities (S.2008/A.3008, Part K).

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Rejects Executive Budget proposal.

 

Contract Procurement

Permits the state, in the case of a construction emergency, to let emergency contracts of up to $1 million for public work or the purchase of supplies, materials or equipment without complying with formal competitive bidding requirements (current threshold is $300,000) (S.2005/A.3005, Part M).

  • Senate: Accepts Executive Budget proposal.
  • Assembly: Rejects Executive Budget proposal.

Extends through 2019 statutes that allow the MTA and the New York City Transit Authority to use procurement methods to procure systems and construction contracts and maintains the $15,000 threshold above which MTA and NYCT must solicit purchases via sealed bids (S.2008/A.3008, Part L).

  • Senate: Accepts Executive Budget proposal.
  • Assembly: Rejects Executive Budget proposal.

Extends for one year the date by which a MWBE disparity study must be delivered to the governor and legislature (S.2008/A.3008, Part Q).

Senate: Rejects Executive Budget proposal.
Assembly: Rejects Executive Budget proposal.

Economic Development

Staff Contact: Ken Pokalsky

Capital Projects (S.2004/A.3004):
The Executive proposes a new $1.5 billion appropriation for the Upstate Revitalization Fund located in the Urban Development Corporation. See details under “Financial Settlements” section below.

  • Senate: Accepts Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal but adds reporting requirements.

Provides $150 million in additional funding for the Regional Development Councils.

  • Senate: Accepts Executive Budget proposal.
  • Assembly: Rejects Executive Budget proposal.

Provides $110 million in additional funding for the NY Challenge Grant program. The funding will be evenly divided between NYSUNY 2020 and NYCUNY 2020 initiatives.

  • Senate: Rejects Executive Budget proposal and reprograms $55 million from the senior colleges and hospitals for critical maintenance and $55 million to increase total capital for senior colleges for critical maintenance and strategic initiatives.
  • Assembly: Accepts Executive Budget proposal.

Provides $45 million for the New York Works Economic Development Fund.

  • Senate: Accepts Executive Budget proposal.
  • Assembly: Rejects Executive Budget proposal.

Provides $35 million from the New York Power Authority for the Global NY Development Fund, to provide grants and loans to help New York State based small- and medium-sized businesses with financing to help them export their products to emerging markets outside the United States. This is an off Budget Item.

  • Senate: Modifies the Executive Budget proposal to take away ability to spend money on NY is Open for Business Program.
  • Assembly: Rejects Executive Budget proposal and only allows money to be transferred to the General Fund.

Includes a new $33.5 appropriation for services and expenses of the New York power electronics manufacturing consortium. This is the first phase of a multi-year program that will provide a total of $135 million in funding.

  • Senate: Accepts Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Provides $32.2 million for the Economic Development Fund.

  • Senate: Modifies the Executive Budget proposal by reducing appropriation by $275,000.
  • Assembly: Rejects Executive Budget proposal.

Provides $25 million to complete the new school of pharmacy at Binghamton University.

  • Senate: Accepts Executive Budget proposal.
  • Assembly: Modifies the Executive Budget proposal and put under the SUNY system.

Provides $19 million to Cornell University College of Veterinary Medicine to expand and upgrade infrastructure and teaching facilities at the Cornell University College of Veterinary Medicine

  • Senate: Accepts Executive Budget proposal.
  • Assembly: Modifies Executive Budget proposal and put under the SUNY system.

Provide $5 million in additional funding to the Clarkson-Trudeau partnership to help grow biotech industry in the North Country.

  • Senate: Accepts Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Extend for one year the authority of the Urban Development Corporation to administer the Empire State Development Fund. This has been extended every year since 2012. (S.2008/A.3008, Part M):

  • Senate: Accepts Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

This part would extend for one year the general loan making authority of the Urban Development Corporation. This has been extended every year since 1997. (S.2008/A.3008, Part N).

  • Senate: Accepts Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Senate Additions

  • Create the Empire Public Works Program designed to provide low-interest loans for public infrastructure projects.(S.4208, Part III)
  • Create the Community Jobs Program. This program will provide grants ranging from $50,000 to $10 million for community revitalization projects. Eligible projects include construction of public assets, affordable housing projects, and local commercial development. Any project must include a job training component.(Senate Resolution)
  • Provides $1 million for an Economic Gardening program to support mezzanine level technology companies. (S.4203, Aid to Localities)

Assembly Additions

  • Provides new $7.5 million capital appropriation in support of the Healthy Food and Healthy Communities Fund. (A.6004 – Capital Projects).
  • Provides $300 million for a Regional Significant Infrastructure Program (A.6004 – Capital Projects).

 

Education / Workforce Development

In the executive budget proposal, school aid would grow by $1.1 billion, or 4.8%, contingent on agreements on teacher evaluations and tenure and other performance improvement proposals.

  • Senate: Adds $1.9 billion in in school aid.
  • Assembly: Adds $1.8 billion in school aid funding and does not include any of the initiatives set forth in the education reform bill (tenure, reconfiguration of teacher evaluations, charter school cap expansion, etc.)

Allows for local school districts, private schools and BOCES to submit waivers from special education requirements for a specific school year and provides for 60 days for the parents of students being affected to submit comments (S.2006/A.3006, Part A).

  • Senate: Accepts Executive Budget proposal.
  • Assembly: Rejects Executive Budget proposal.

Directs the commissioner of education to establish regional tuition rates for special education itinerant services based on average actual costs, and provides for the phase in over a four-year period (S.2006/A.3005, Part A).

  • Senate: Accepts Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Provides that any new curriculum or program of study offered by a four-year college or community college that does not require board of regents approval of a master plan amendment and that is approved by the board of trustees shall be deemed registered with the department. The board of trustees must notify the department within 30 days of such approval (S.2006/A.3006, Part B).

  • Senate: Modifies the Executive Budget proposal by including private and independent schools. The Senate also supports the inclusion of degree-granting proprietary schools.
  • Assembly: Rejects Executive Budget proposal.

Provides $3 million to support a third round of P-TECH school designations (S.2003/A.3003)

  • Senate: Accepts Executive Budget proposal.
  • Assembly: Modifies the Executive Budget proposal to include career and technical education high schools.

Enacts the New York State Get On Your Feet Loan Forgiveness Program; eligible applicants must: graduated from a high school located in New York State or attended or received a high school equivalency diploma in New York State; earn an undergraduate degree from a college or university with its headquarters located in New York State in or after 2015; participate in a federal income-driven repayment plan; have an income of less than $50,000; reside in New York; and, if employed, work in New York State. Awards will be equal to 100 percent of the participant’s monthly federal income-driven repayment plan payments for the first two years of repayment under the federal program (S.2006/A.3006, Part C).

  • Senate: Modifies the Executive Budget proposal to cover 50 percent of participant’s student loan.
  • Assembly: Modifies the Executive Budget proposal to allow students who enroll in a graduate program immediately after college to apply for loan forgiveness upon completion.

Requires the SUNY and CUNY board of trustees to pass resolutions (by the end of 2015) providing that students be required to participate in an approved experiential or applied learning activity as a degree requirement (S.2006/A.3006, Part Q)

  • Senate: Modifies the Executive Budget proposal to: define “experiential learning”; require data collection; create exemptions for students who work part- or full-time jobs and students with prior work experience; and delay the implementation date.
  • Assembly: Rejects Executive Budget proposal.

Institutes the Dream Act, extending eligibility for financial awards to applicants without lawful immigration status if the student attended a New York State high school for two or more years (and graduated) or received a high school equivalency diploma. (S.2006/A.3006, Part D).

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Modified the Executive Budget proposal to include a Dream Fund Commission.

Renames the Youth Works Tax Credit to the Urban Youth Jobs Program tax credit, allocates an additional $10 million in tax credits in 2015-2017 and targets localities with high unemployment and high youth poverty (S.2009/A.3009, Part M).

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Amends the tenure process for teachers and principals hired after July 1, 2015, stipulating that new teachers will remain on probation until they receive five consecutive ratings of “effective” or “highly effective” on the APPR (S.2010/A.3010, Part A).

  • Senate: Modifies the Executive Budget proposal.
  • Assembly: Rejects Executive Budget proposal.

Authorizes the Commissioner of Education to a categorize a school district as failing (one that has scored in the lowest 2.5 percent of school districts statewide, when compared to other districts based on student achievement and performance on state assessments, graduation rates and drop-out rates) and appoint a receiver to create and enact a plan to improve student achievement (S.2010/A.3010, Part A).

  • Senate: Modifies the Executive Budget proposal.
  • Assembly: Rejects Executive Budget proposal.

Increases the cap on charter schools by 100 to 560 (S.2010/A.3010, Part A).

  • Senate: Accepts Executive Budget proposal.
  • Assembly: Rejects Executive Budget proposal.

Requires institutions with graduate-level teacher education programs to adopt rigorous selection criteria including, including achievement of 3.0 or higher GPA in a candidate’s undergraduate program and a minimum GRE score (or comparable admission examination) as determined by the institution, and provides for the suspension of the institution’s operations if fewer than 50 percent of its students pass examinations required for certification. Also requires teachers to register with state ed. every five years and imposes a $10/month late fee, and requires teachers to complete at least 100 hours of continuing teacher education during each registration period (S.2010/A.3010, Part A)

  • Senate: Accepts Executive Budget proposal.
  • Assembly: Rejects Executive Budget proposal.

Creates the New York State Masters-in-Education Teacher Incentive Program for students in approved masters’ education programs who meet the following criteria: earned an undergraduate degree from a New York college and resided in New York while earning the degree; achieved academic excellence as defined by the corporation in regulation; and agree to teach on a full-time basis in New York for five years (S.2010/A.3010, Part A)

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Modifies the Executive Budget proposal to allow teachers working at state-run facilities to qualify.

Amends the components of the teacher evaluation system to remove the local test portion and changes the weightings of the score components to 50 percent state tests and other comparable measures and 50 percent classroom observations.

  • Senate: Modifies the Executive Budget proposal.
  • Assembly: Rejects Executive Budget proposal.

While not included in the Executive Budget language, the Governor will create regional planning councils to work with community colleges to assure their programs address workforce needs.

  • Senate: Not addressed.
  • Assembly: Not addressed.

 

Election and Campaign Finance Reform

Staff Contact: Ken Pokalsky

Requires campaign committee reports to identify “intermediaries” (i.e., bundlers) that deliver contributions to committees (S. 2005/A. 3005. Part E, Section 3).

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Modifies the Executive Budget definition of intermediary to exclude campaign staff; accepts proposal to require identification of intermediaries.

Establish a $25,000 annual limit for contributions to housekeeping accounts (S. 2005/A. 3005. Part E, Section 4).

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Rejects Executive Budget proposal; instead, limits transfers and communications by housekeeping accounts for political purposes.

Establishes contribution limits for participants in the voluntary public financing program of $12,000 for statewide candidates ($6,000 for both the primary and general election); $8,000 for Senate candidates; and $4,000 for Assembly candidates. Lowers contribution limits for non-participating candidates to $25,000 for statewide offices ($10,000 for the primary and $15,000 for the general), $10,000 for senate candidates ($5,000 for each election), and $6,000 for assembly candidates ($3,000 for each election). (S. 2005/A. 3005. Part E, Section 6.)

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Rejects Executive Budget proposal.

Establishes a $1,000 annual aggregate contribution limit for corporations and LLCs (S. 2005/A. 3005. Part E, Section 7).

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Modifies the Executive Budget proposal to add LLCs to the existing $5,000 cap on corporate contributions.

Effective for 2018 elections, creates a public campaign funding program (S. 2005/A. 3005. Part E, Section 9): Sets public funding limits for primary and general elections for governor ($8 and $10 million respectively), other statewide offices ($4 million for both), for senate ($375,000 for both) and for assembly ($175,000 for both); Sets qualification thresholds for candidates, based on total contributions and number of contributors; Funding to be provided through tax return check-off contributions, transfers from the states’ abandoned property fund, appropriations from the state general fund and direct contributions; Provides a 6 to 1 match for qualifying contributions of up to $175; Only contributions from “natural persons” are matchable; lobbyists are categorically prohibited from making matchable contributions.

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Rejects Executive Budget proposal.

Assembly Additions

  • Provides that funds in housekeeping accounts can only be transferred to other committees for use for “non-candidate expenditures.”
  • Expands the definition of “independent expenditure” to include a communication within 60 days of a primary or 30 days of a general election that references a clearly identified candidate.
  • Prohibits transfers from political action committees to independent expenditure committees.

 

Energy

Staff Contact: Darren Suarez

Directs a payment of up to $913,000 from the New York State Energy Research and Development Authority (NYSERDA) to the General Fund. This transfer has been authorized for a number of years to cover the costs of West Valley. (S2008/A3008 Part O).

  • Senate: Accepts Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Authorizes $19.7 million in assessments on utilities to fund NYSERDA’s research, development and demonstration, and policy and planning programs, and DEC's climate change program. (S.2008/A.3008, Part P)

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Modifies the Executive Budget proposal; accepted the assessment but cap collections at $19.7 million, and requires reporting of future expenditures.

Transfers $36 million of RGGI proceeds to the State, including $13 million to Environmental Protection Fund (EPF) to cover revenue shortfalls and to increase the EPF. (S.2005/A.3005, Part P.)

  • Senate: Modifies Executive Budget proposal. Senate proposal would accept the RGGI sweep and dedicate $28 million for unspecified greenhouse gas abatement initiatives.
  • Assembly: Rejects Executive Budget proposal.

Authorizes the Long Island Power Authority (LIPA) to issue special securitized restructuring bonds that would reduce the interest rates paid on LIPA’s debt. (S2008/A3008, Part W. )

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Modifies the Executive Budget Proposal to prohibit extending the number of years for repayment.

Senate Additions:

  • Eliminate the Section 18‐A energy surcharge by the end of 2015.
  • Reduce regulatory procedures for land line telephone and cable companies.
  • Use current energy assessments to extending gas service to new customers.
  • Provides funding for municipalities to improving infrastructure in conjunction with utility maintenance or expansion projects.
  • Creates a senior citizen utility circuit breaker which would provide a refundable tax credit to any senior household that pays more than seven percent of their annual income in utilities. The amount of relief would equal fifty percent of utility expenses above the seven percent threshold.
  • Requires NYSERDA to pay grants to farms no later than 90 days after notification of the award.
  • Creates a fund to provide upgrades of electricity service to the new three phase power infrastructure through a low interest revolving loan fund.
  • Proposes to create a long term incentive program for fuel cell installation similar.
  • Limits NYSERDA’s ability to raise revenue through increasing ratepayer surcharges.
  • Provides that the state’s Green Bank could assist property owners with energy efficiency projects.
  • Directs $10 million dollars annually for farm based renewable generation or energy efficiency projects, and to provide seed money for the proposed three phase power revolving loan fund.

Assembly Additions:

  • Proposes that NYSERDA administer a program to award grants to assist New York City multi‐family structure owners in replacing heating systems with cleaner technologies, including number two heating oil, natural gas, and steam.
  • Proposes that NYSERDA develop standards to encourage and increase participation of low‐to‐moderate income households to participate in the Green Jobs‐Green New York program and to continue funding customers who were eligible for such program prior to January 1, 2015.
  • Proposes the development of the State Office of the Utility Consumer Advocate.
  • Proposes to establish an intervenor process for consumer advocacy in utility matters, and dedicates $1 million for intervenor funds.

 

Environment

Staff Contact: Darren Suarez

Extend the Brownfield program for ten years and limits the number of projects eligible for the tangible property credit. Program reforms include: adoption of the BCP--‐EZ, a fast--‐track approval option without tax credits; requiring sites in the Brownfield Cleanup Program (BCP) prior to 4/1/15 to obtain a certificate of completion by 12/31/17, or meet new tangible property credit eligibility criteria; exempt hazardous waste generated at certain remedial sites from fees and special assessments. Tax credit provisions are under
Taxation below. (S.2009/A.3009, Part R).

  • Senate: Modifies Executive Budget Proposal; provides significant and substantive amendments to increase the eligibility of projects to the tangible property credit.
  • Assembly: Rejects the Executive Budget proposal; proposes a ten year extender of the BCP and ten years of new bonding for the Superfund program.

Increases operating permit program fees for all sources subject to federal Clean Air Act permitting (Title V facilities): $2,500 for a source subject to state facility permit, $250 for a source subject to a minor facility registration, and $2,500 for a facility with any other operating approval (S.2008/A.3008, Part Y.)

  • Senate: Rejects the Executive Budget proposal.
  • Assembly: Modifies the Executive Budget proposal. Assembly accepts the Title V fee increase but rejects a proposal to index the fees to the CPI. Assembly rejects proposed fee increase for non-Title V facilities.

State Pollutant Discharge Elimination System (SPDES) permit fees are increased between 15% to 25%, depending on the facility. (S.2008/A.3008, Part Y.)

  • Senate: Rejects the Executive Budget proposal.
  • Assembly: Accepts the Executive Budget proposal.

Repeals the fee assessed by the Department of Environmental Conservation (DEC) on water well drillers. (S.2008/A.3008, Part Z).

  • Senate: Accepts the Executive Budget proposal.
  • Assembly: Rejects the Executive Budget proposal.

Provides $100 million to finance the New York State Superfund program. (S.2004/A.3005 P.85)Provides $155 million of new capital appropriations including $110 million for Parks infrastructure, $40 million for DEC capital needs, $2.5 million for ORDA infrastructure, and $2.5 million for improvements on the State fairgrounds.

  • Senate: Modifies the Executive Budget proposal.
  • Assembly: Assembly increases

Amends the State Oil Spill Fund to expand the purposes of the Fund, to transfer its operations to DEC, and to increase the fees for oil transported through New York to 13.75 cents per barrel and to increase the per--‐barrel license fee for major oil storage facilities (MOSFs), irrespective of whether the oil remains in New York or is transferred to another State. (S.2008/A.3008, Part X)

  • Senate: Rejects the Executive Budget proposal
  • Assembly: Modifies the Executive Budget proposal. The proposal accepts the fee increases but does not transfer control of the Spill Fund to the DEC.

Senate Initiatives

  • Waives the asbestos project notification fee for local governments. The current fee ranges from $200 to $2,000. (S S.4208 Part FF)
  • Exempts contractors under construction contracts with municipalities from payment of asbestos project notification fees for demolitions. (S.4208 Part GG)
  • Creates an asbestos tax credit. Under terms of the legislation, the credit will cover 20% of costs incurred as a result of asbestos removal, up to $1 million. (S.4208 PART HH)
  • Removes private entities and postpone the enactment of the Diesel Emissions Reduction Act (“DERA”) for state entities and authorities. State agencies would not have to comply with the requirement of DERA until December 31, 2017. (S.4208 PART KK)
  • Modifies commercial pesticide applicator certification fee schedules. The Senate proposed to eliminate the one year pesticide applicator license for landscape pesticide applicators. Currently landscape pesticide applicators pay $200 annually for a commercial applicators license but other commercial applicators pay $450 for three years. (S.4208 PART ZZ)

 

Financial Services

Allows public accounting firms to incorporate in New York State with minority ownership by individuals who are not Certified Public Accountants. (S.2006/A.3006, Part G)

  • Senate Accepts the Executive Budget proposal.
  • Assembly: Rejects the Executive Budget proposal.

Restructures New York City general corporate tax structure, which would apply to all corporations including financial corporations effective 1/1/15. See details under Taxation. (S.2009/A.3009, Part QQ.)

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

 

Financial Settlement Funding

Staff Contact: Ken Pokalsky

New York received $5.7 billion in financial settlements in the current state fiscal year which exceeded budgeted financial settlement projections by $5.4 billion. The Executive Budget proposal has dedicated this money to the following initiatives in the State Financial Plan:

Thruway Stabilization Program ($1.28 billion), to fund the Thruway Stabilization Program for expenses related to both the new Tappan Zee Bridge and the statewide system.

  • Senate: Modifies the Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Penn Station Access ($250 million), for MTA’s Penn Station Access project, which will open a new Metro-North link directly into Penn Station and construction of four new Metro-North stations in the Bronx.

  • Senate: Modifies the Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Infrastructure Improvements ($115 million), for infrastructure improvements to support transportation, upstate transit, rail, airport, port, and other infrastructure improvements or economic development projects.

  • Senate: Modifies the Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Broadband Initiative ($500 million), for the New NY Broadband Fund to expand the availability and capacity of broadband across the State.

  • Senate: Modifies the Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Hospitals ($400 million), to support the restructuring of debt obligations and to fund capital improvements for, and to facilitate mergers and consolidations of, hospitals in rural communities.

  • Senate: Modifies the Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Transit-Oriented Development ($150 million), funding to create new transit-oriented development, including but not limited to, the development of structured parking facilities at Nassau hub and Ronkonkoma hub.

  • Senate: Modifies the Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Resiliency, Mitigation, Security, and Emergency Response ($150 million), to support preparedness and response efforts.

  • Senate: Modifies the Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Municipal Restructuring ($150 million), for local governments and school districts to implement shared services, cooperation agreements, mergers, and other actions that permanently reduce operational costs and property tax burdens.

  • Senate: Modifies the Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Southern Tier/Hudson Valley Farm Initiative ($50 million), for landowners in the Southern Tier and Hudson Valley maintain and develop farming, agricultural, and related businesses.

  • Senate: Modifies the Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Upstate Revitalization Account ($1.5 Billion)
The Upstate Revitalization Account will support the Upstate New York Economic Revitalization Competition, whereby $500 million grants will be awarded to three upstate regions.  Funding will focus on economically distressed upstate metropolitan areas and surrounding regions; and on projects with region wide impacts, that strengthen critical infrastructure, that promote workforce development, and improve quality of life. Seven regions are eligible to compete for one of three $500 million grants: Mid-Hudson, Capital Region, Mohawk Valley, Central New York, North Country, Southern Tier, and Finger Lakes. The Governor announced the competition and process for winning upstate revitalization funds will be guided by a five-member Strategic Plan Review Committee comprised of the following committee members:  Bruce Katz, Brookings Institution; Marc Morial, President, National Urban League; Cesar Perales, New York Secretary of State; and Susan Christopherson, Professor and Chair of City and Regional Planning, Cornell University. There is no Article VII language associated with this program. The money is scheduled to be disbursed over a 5 year period as seen in the chart below.

  • Senate: Accepts Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal but includes reporting language.

Miscellaneous ($855 million)

Financial Plan Reserves ($850 million): The Executive Budget sets aside $850 million in settlement funds for potential Financial Plan risks.

  • Senate: Modifies the Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Office of Alcoholism and Substance Abuse Services ($5 million): The Budget assumes that $5 million of settlement funds will be used to expand services provided by OASAS to individuals with dependencies on alcohol or drugs, or who have gambling problems.

  • Senate: Modifies the Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Senate Additions
The Senate modifies the Executive’s capital proposal to include the following:

  • $1.5 billion for Upstate Revitalization projects;
  • $700 million for Regionally significant projects;
  • $1 billion for municipal clean water matching grant and loan program and broadband infrastructure;
  • $100 million for public safety;
  • $1.5 billion for highway and bridge capital projects;
  • $885 million for the regionally significant Tappan Zee Bridge Project;
  • $1 billion for Metropolitan Transportation Authority capital projects including Penn access;
  • $25 million for Upstate transit capital projects;
  • $50 million for the Southern Tier and Hudson Valley Farm program;
  • $115 million to support rail, airport and port capital projects;
  • $400 million for State and Municipal infrastructure projects; and
  • $50 million for Main Street Revitalization to demolish abandoned buildings.

Assembly Additions

  • The Assembly allocates $10 million in Special Infrastructure Account funding to support the establishment of a community health facility revolving loan fund.

 

Health Care / Health Insurance

Staff Contact: Lev Ginsburg

Adds a new Financial Services Law (FSL) § 208 creating a new assessment (tax) on all health insurers in the individual, small group and large group insurance markets on qualified health plans, to pay for the $69 million costs of the NY State of Health, the State health insurance exchange, operation, for each fiscal year commencing on or after 4/1/15. It also creates record retention requirements, audits and a noncompliance penalty regime. S. 2007/A. 3007, Part G, Section 1.

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Modifies Executive Budget proposal to disallow health insurance plans from passing the costs of the assessment into premiums.

Amends Social Services Law (SSL) §367-a(7) to allow the State to negotiate supplemental rebates directly with pharmaceutical manufacturers both inside and outside of Managed Care on covered out-patient drugs with a pre-existing rebate agreement with the federal government. S. 2007/A. 3007, Part B, Section 1.

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Modifies Executive Budget proposal to apply only to antiretroviral and hepatitis drugs.

Adds PHL §272(a-1) authorizing the Commissioner to require supplemental rebates from manufacturers of brand name drugs utilized in the Medicaid fee-for-service, subjecting these pharmaceuticals to prior authorization if supplemental rebate is not provided. S.2007/A. 3007, Part B, Section 5.

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Rejects Executive Budget proposal.

Amends PHL §273 eliminating prescriber prevails provisions for fee-for-service Medicaid drugs not on the preferred drug list. S. 2007/A. 3007, Part B, Section 6.

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Rejects Executive Budget proposal.

Authorizes the commissioner to establish a reinsurance pool, and to make changes to value based payments or methodologies of reimbursement that are value based as necessary to conform to the terms and conditions of the DSRIP waiver. S. 2007/A. 3007, Part F, Section 1.

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Rejects Executive Budget proposal.

Adds a new section PHL §2801-a(17) authorizes limited services clinics to provide health care services within retail space or a space used by an employer for providing health care services to its employees. The Commissioner of Health shall promulgate regulations for the operation of limited services clinics. S.2007/A. 3007, Part H, Section 1.

  • Senate: Modifies to add anti-discrimination language.
  • Assembly: Rejects Executive Budget proposal.

Amends SSL §367-a increasing the current average wholesale price (AWP) for brand name drugs from AWP minus 17% to AWP minus 24%; and increases DOH brand name drug dispensing fees from $3.50 to $8.00 per prescription. S.2007/A.3007, Part B, Sections 2 and 3.

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Rejects Executive Budget proposal.

Adds SSL §364-j(24-a) requiring federally participating section 340B drug providers bill managed care plans at the actual acquisition cost for 340B drugs. S. 2007/A. 3007, Part B, Section 7.

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Rejects Executive Budget proposal.

Adds Public Health Law §2801 to establish a private equity pilot program, allowing up to five non-publicly traded businesses, affiliated with at least one medical institution or a teaching hospital, to make private capital investments to assist in restructuring healthcare delivery systems; and allow debt financing provided through the Dormitory Authority of the State of New York (DASNY). S.2007/A.3007, Part Q.

  • Senate: Modifies Executive Budget proposal to allow ten non-publicly traded businesses.
  • Assembly: Rejects Executive Budget proposal.

Senate Additions

  • The Senate Adds S.4207, Part L, which creates a mandate on health insurers to pay a facility fee for the utilization of office-based surgical facilities.

 

Labor / Human Resources

Staff Contact: Frank Kerbein

Increases the state’s minimum wage to $10.50 per hour and authorizes a New York City minimum wage of $11.50 per hour, effective December 31, 2016 (S.2006/A. 3006, Part N).

  • Senate: Rejects the Executive Budget proposal.
  • Assembly: Increases the minimum wage to:
    • $10.50 statewide and $12.50 for New York City and Nassau, Suffolk and Westchester counties (effective 12/31/16)
    • to $11.55 statewide and $13.75 for the downstate region effective 12/31/17;,
    • to $12.60 statewide and $15.00 for the downstate region effective 12/31/18, and thereafter requires an annual CPI-based increase; provides proportional increases for wage payment to tip wage workers.
    •  
    • Temporarily (through 12/1/16) provides a public or private healthcare professional who volunteers to fight the Ebola virus overseas with a right take to an unpaid leave of absence unless it would impose an undue hardship on the business operations of the healthcare professional’s employer. (S.2006/A.3006, Part O).
       
  • Senate: Rejects the Executive Budget proposal.
  • Assembly: Provides an unlimited leave of absence to volunteer to fight the Ebola virus overseas. Includes an expansive employee Bill of Rights.

Repeals twenty one separate fees assessed by the Department of Labor for a variety of inspection and enforcement activities and permits, including two Professional Employer Organization (PEO) fees covering the initial $1,000 state registration fee and a $250 annual fee for out-of-state PEOs with less than 25 employees in New York State (S.2006/A.3006, Part P).

  • Senate: Accepts the Executive Budget proposal.
  • Assembly: Accepts the Executive Budget proposal.

Creates a commission that would convene every four years to make pay recommendations for the governor, lieutenant governor, attorney general, comptroller and members of the legislature (S.2005/A.3005, Part I).

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Rejects Executive Budget proposal.

Senate Additions

  • Require employers of 25 or more employees to provide 6 weeks of paid family leave; increase the statutory disability maximum benefit from $170 per week to over $700 per week over a three year period (S.4205, Part GG).

 

Racing and Gaming

Staff Contact: Ken Pokalsky

Amends the definition of Video lottery gaming to expand the types of video lottery terminals that may operate at video gaming facilities under law. (S.2009/A.3009, Part OO

  • Senate: Modifies the Executive Budget proposal to include a 2 year sunset date.
  • Assembly: Accepts the Executive Budget proposal.

Senate Additions

  • Mandates that the division of the state police will complete criminal background checks for all casino vendor license applicants.(S.4209-Part WWW)
  • Eliminates maintenance of effort payments made by OTBs to Harness tracks; extends market origination fees to out entities who have contracts with in state tracks; allows OTBs to retain uncashed tickets; Lowers consent mileage from 40 to 10 miles for OTBs; puts in an OTB capital acquisition fund payback requirement to local governments. (S.4209-Part XXX)
  • Increase by 1% the retention of purse monies related to Worker’s Compensation Insurance coverage. (S.4209-Part YYY)
  • Eliminate dark day payments made by OTBs to Harness Tracks; (S.4209-Part ZZZ)
  • Extend for one year the vendor fee rates for a vendor track located in Sullivan County. (S.4209-Part AAAA)

Assembly Additions

  • Requires the Commissioner to conduct a statewide evaluation regarding the extent of legal and illegal gambling. (A.6007, Part V)
  • Extend for one year the vendor fee rates for a vendor track located in Sullivan County. (S.6009-Part ZZ)

Increase by 1% the retention of purse monies related to Worker’s Compensation Insurance coverage. (S.6009-Part ZZ

Taxation / Revenues / Tax Credits

Staff Contact: Ken Pokalsky

Brings New York City business taxes into conformance with state-level corporate franchise tax reforms adopted in 2014, effective 1/1/15. In addition, adopts small business tax rate reductions and adopts a $10 million cap on capital based tax liability. S.2009/A.3009, Part QQ

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Expands the Section 184 utility gross receipts tax and MTA surcharge to wireless communications providers S.2009/A.3009, Part P.

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Extends the brownfield cleanup program’s remediation and redevelopment investment tax credits through 12/31/25; repeals the programs’ environmental insurance and real property tax credits,applicable to projects entering the program on or after 4/1/15; limits the category of sites eligible for the tangible property credit (e.g., projected investigation and cleanup cost must the appraised value of property “absent contamination”); reduces the eligibility period for the tangible property credit from 10 to 5 years. S.2009/A.3009, Part R.

  • Senate: Allows the tangible property credit for projects either located 50% in an “EnZone”, if the cleanup cost more than 30 percent of the unimpaired value of the property, the project was for affordable housing, or if the site was underutilized or functionally obsolete; retains the 10 year period for claiming the tangible property credit; provides a 5% bonus credit for projects located in an EnZone or brownfield opportunity area, or intended for affordable housing or manufacturing project; includes asbestos abatement in site preparation costs; extends all current tax credits through 2025.
  • Assembly: Extends all brownfield tax credits as is through 3/31/25.

Reduces the corporate franchise tax rate on “small business taxpayers” (e.g., less than 100 employees, less than $1 million in capital) with a business income base under $290,000 to 3.25% in 2016, 2.9% in 2017, and 2.5% in 2018 and thereafter; business with an income base under $390,000 receive these rates for that portion of their income under $290,000.  S.2009/A.3009, Part N.

  • Senate: Increased the threshold for the Article 9-A ENI rate reductions to $400,000, with lesser reductions for incomes up to $500,000; increases the Article 22 PIT exclusion for small business and farm income from 3 to 10 percent, for taxpayers with small business/farm income under $500,000.
  • Assembly: Accepts Executive Budget proposal.

Makes “technical” amendments to 2014 state business tax reforms related to: definition of investment capital; residential loan portfolios; criteria for economic nexus threshold; basis for manufacturers’ rate differential; PNOLCs and NOLs; apportionment rules for mark to market gains; financial service ITC; START-UP NY credits; and mandatory S corporation election. S.2009/A.3009, Part T.

  • Senate: Rejected amendments to definition of “investment capital,” modified treatment of stock held at least six months as investment capital, rejects changes related to inclusion of QETCs in Article 9-A definition of “manufacturer,”
  • Assembly: Accepts Executive Budget proposal.

Adopts a job training program tax credit equal to 50% of training costs, up to $10,000 in costs per eligible employee; employer must have 10 net new jobs or a $1 million capital investment; statewide cap of $5 million of such credits to be authorized annually; credits count against the annual Excelsior jobs credit cap.  S.2009/A.3009, Part O.

  • Senate: Replaces the Executive Budget proposal with a Technology Internship program with Article 9-A and 22 tax credits for up to 50% of the stipends paid by employers to interns.
  • Assembly: Accepts Executive Budget proposal.

Requires IDA to obtain ESDC approval before providing new or increased state tax abatements; establishes timetable and criteria for approval; authorizes the Department of Taxation and Finance to audit IDA projects; allows state credit claw-backs if project goals are not achieved; disallows IDS benefits to project operators with past due tax liabilities. S.2009/A.3009, Part W.

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Rejects Executive Budget proposal.

Modifies the youth works tax credit program; makes $10 million in credits available annually for 2015, 2016 and 2017; limits program to the state’s six highest unemployment areas.  S.2009/A.3009, Part M.

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Adopts provisions to limit sales tax avoidance; applies sales tax when property brought into NYS by an entity that had not been in business outside NYS for six months; treats a single member LLC and its member as one person for sales tax transactions; requires up-front payment of all sales tax due pursuant to a lease; prevents sales-tax-free transfers of any tangible property between affiliated entities in exchange for stock or partnership interest. S.2009/A.3009, Part Y.

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Defines “marketplace providers” (i.e., collects purchase prices and performs other sales function) and requires them to collect sales tax on taxable sales they facilitate. S.2009/A.3009, Part X.

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Requires Article 9 taxpayers who pass tax costs onto customers to refund tax payments to customers before seeking a tax refund or credit of such taxes paid to the state.    S.2009/A.3009, Part Q.

  • Senate: Rejects Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Expands the Excelsior jobs credit program to include “entertainment companies,” defined as entities engaged in the production or post-production of movies, television shows and commercials, animated films and similar products. S.2009/A.3009, Part K.

  • Senate: Modifies this proposal to apply only to video game developers.
  • Assembly: Accepts Executive Budget proposal.

While language is not included in the Executive Budget, the Governor will direct $70 million in Excelsior Job Creation credits to be distributed through the Regional Economic Development Council process.

  • Senate: Not specifically addressed.
  • Assembly: Not specifically addressed.

Adopts a number of tax enforcement provisions: makes provisions for warrantless wage garnishments permanent (Part DD); reduces from $10,000 to $5,000 the threshold of past due tax liability that provides the basis for suspension of drivers’ license (Part EE); requires state tax compliance as a condition of excess malpractice coverage (Part FF), receiving state or local grants (Part GG), obtaining a professional or business license (Part JJ), or enter the state workforce (Part KK). All provisions are in S.2009/A.3009.

  • Senate: Extends authority for warrantless wage garnishments for one year (Part DD); accepts provisions related to state and local grants (Part GG); accepts extension of excess malpractice insurance program but deletes related tax clearance provisions; rejects all other tax clearance provisions.
  • Assembly: Accepts the permanent extension of warrantless wage garnishment provisions (Part DD); rejects all other provisions.

Authorizes the Tax Commissioner to enter into reciprocal agreements with other states for the collection of fixed and final state tax liabilities. S.2009/A.3009, Part HH.

  • Senate: Accepts Executive Budget proposal.
  • Assembly: Rejects Executive Budget proposal.

Make technical amendments to the 2014 Estate Tax reforms. S.2009/A.3009, Part BB.

  • Senate: Accepts Executive Budget proposal.
  • Assembly: Modifies Executive Budget provisions related to credits; gift exclusions; the “qualified terminable interest property election;” and tax computation.

Makes permanent the limitations on charitable deductions under the PIT for taxpayers with AGI above $1 million. S.2009/A.3009, Part H.

  • Senate: Extends current limits for two years (through 2017).
  • Assembly: Accepts Executive Budget proposal.

Makes “technical” amendments to the personal income tax; clarifies payment of the MTA mobility tax by non-resident self-employed taxpayers; clarifies the basis for the manufacturer’s real property tax credit under Article 22; modifies the Start Up NY telecomm excise tax credit. S.2009/A.3009, Part I.

  • Senate: Generally accepts these provisions; expands the Article 22 manufacturing real property credit to include several categories of agricultural activity and commercial fishing.
  • Assembly: Accepts Executive Budget proposal.

Adopts a new non-refundable education tax credit under both the corporate franchise tax and personal income tax; equal to 75% of qualifying contribution, up to $1 million per taxpayers; contributions are to public or non-public schools, school improvement associations, local education funds, and scholarship-granting entities; up to $100 million in credits are allowable each year. S.2010/A.3010, Part E.

  • Senate: Adopts an alternative education tax credit program; provides for a non-refundable credit under the corporate franchise tax and personal income tax of 90 percent of contributions up to $1 million per taxpayer; places an cap on aggregate allowable credits of $150 million in 2016 increasing to $300 million in 2018 and thereafter.
  • Assembly: Rejects Executive Budget proposal.

Extends the wine tasting sales and use tax exemption to other alcoholic beverages.  S.2009/A.3009, Part U.

  • Senate: Accepts Executive Budget proposal.
  • Assembly: Accepts Executive Budget proposal.

Adopts a new residential real property tax circuit breaker for households with incomes below $250,000, and a renters’ credit for households with income below $150,000, with a cost of $1.7 billion annually once fully implemented (S.2009/A.3009, Part G); makes numerous changes to the STAR program (S.2009/A.3009, Parts A thru F)

  • Senate:
  • Assembly: Accepts modifications to the NYC STAR income tax reduction benefit (Part B), extension of re-application period for STAR (Part F); modifies the Part G circuit breaker provisions to, among other things, eliminate the RPT cap compliance criteria; rejects all other provisions.

Senate Additions

  • Part SS: Repeals Section 18-a energy assessments for 2015, 2016 and thereafter.
  • Part TT: Increased the maximum sales tax vendor credit from $200 to $400 per quarter.
  • Part VV: Establishes a $250 million appeals cap bond related to claims under the tobacco master settlement.
  • Part WW: Repeals the long-dormant stock transfer tax.
  • Part XX: Authorizes and regulates professional mixed martial arts.
  • Part YY: Makes permanent the existing authority for certain municipalities to impose increased sales tax rates.
  • Part ZZ: Exempts general aviation aircraft from sales and use tax.
  • Part EEE: Exempts school bus and equipment purchases from sales tax (i.e., when purchased by private contractors).
  • Part KKK: Adopts a 20 percent refundable asbestos remediation credit under Articles 9, 9-A and 22.
  • Part NNN: Expands the film production credit to include wage expenses in specified upstate counties.
  • Part VVV: Adopts a real property tax levy cap applicable to New York City.
  • Part DDDD: Extends the Section 421 credit by three years through 6/1/18.

Assembly Additions

  • Part UU – Modifies the calculation of the Article 22 QEZE tax reduction credit.
  • Part WW – Adopts the Empire State music production credit (similar to the film production credit)

Technology / Telecommunications

Adopts a new $500 million appropriation for the New NY Broadband initiative to be disbursed out of the Special Infrastructure Account. The program seeks to develop broadband infrastructure to help bring high speed internet access to underserved regions of the State. There is no Article VII language associated with this program. Money is scheduled to be disbursed over a 5 year period; it was announced that broadband providers and communities seeking to access this funding must commit to: providing at least a $1 for $1 financial match; providing internet speeds of at least 100 Mbps; and seeking local input to guide their development by working with the regional development councils to submit a plan to the state. In addition, the program will also explore ways to streamline permitting and processes, embrace dig-once and make-ready policies, and institute uniform state agency procedures that encourage broadband deployment. (S.2004/A.3004).

  • Senate: Modifies Proposal to add an additional $500 million for clean water infrastructure.
  • Assembly: Accepts the Executive Budget proposal.

Senate Additions

  • Authorizes the PSC, after notice and hearing, to waive certain regulatory provisions for telephone corporations and services if it is determined that such provisions are (i) not necessary to ensure just and reasonable rates; (ii) not necessary to protect the customers; and that, (iii) forbearance is in the public interest (e.g., increases competition among telecommunication companies). In addition, this part would streamlines the confirmation of cable franchise and renewal petitions by merely requiring the cable company to show proof of conformity to the PSC minimum franchising standards. The PSC would not be required to individually confirm each petition; the petitions will be deemed approved in 45 days, unless the PSC makes a determination that a deeper analysis is needed.(S.4208, Part XX)

Assembly Additions

  • Creates the State office of the Utility Consumer Advocate within the Department of State to represent residential utility consumers' interests in residential utility matters at the state and federal level. (A.6005, Part U). In addition, the Assembly includes a $500,000 appropriation for this office in the Department of State (A.6000 – State Operations). Also provides $505,000 to the Public Utility Law Project. (A.6000 – State Operations)

 

Workers’ Compensation

Staff Contact: Lev Ginsburg

Sections 10-12 amend section 134 of the Workers' Compensation Law removing the Workplace Safety and Loss Certification fees for certification to conduct workplace safety and loss prevention consultations, loss prevention management specialists and per diem DOL charges to clients who receive a workplace safety and loss prevention consultation from DOL staff. S. 2006/A. 3006, Part P.

  • Senate: Accepts the Executive Budget proposal.
  • Assembly: Accepts the Executive Budget proposal.