Overview of Senate and Assembly Budget Bills

Construction  | Contract Procurement  | Economic Development  | Education / Higher Education / Workforce Development  | Election and Campaign Finance Reform  | Energy  | Environment  | Financial Services  | Health Care / Health Insurance  | Labor / Human Resources  | Racing and Gaming  | Taxation / Revenues / Tax Credits  | Technology / Telecommunications  | Transportation  | Travel and Tourism

Construction

Make “design-build” contract authorization permanent; extend its authorized use to local governments on non-Wicks Law projects. Unfortunately, the 30 day amendments reversed course, and imposed unworkable PLA requirements, which remains our most significant concern regarding this issue in the Article VII bill. The 30 day amendments also changed this to a 6 year extension, and eliminated the expanded use by municipalities. 

  • Senate – Rejects Executive Budget proposal
  • Assembly – Accepts Executive's 30 day amendment language adding a PLA mandate to design-build projects, extending design-build authorization for three years and adds a requirement for a detailed annual report on design-build projects done during the year.

Contract Procurement

Includes $250,000 to conduct a disparity study on state contracting with disabled-veteran owned small business owners, which will serve as the basis for a set aside goal of 5% state contracts. Additionally, the executive introduced a separate budget bill, S.6609/A.8768 “The Service-Disabled Veteran-Owned Business Act” that sets a 5% state contract goal.

  • Senate - modifies this.
  • Assembly - modifies this.

Local governments would be authorized to access the State's data center and other IT services (PPGG, S.6355-B/A.8555-B, Part F).

  • Senate - modifies this.
  • Assembly - modifies this.

Provisions allowing the state to make aggregate energy purchases for state agencies, local governments, public authorities, public benefit corporations, and institutions which are set to expire in 2015 are extended to 2020 (PPGG, S.6355-B/A8555-B, Part G).

  • Senate modifies this and proposes to make this permanent
  • Assembly modifies to extend until 2017.

The Assembly's also proposes the following:

Includes language to require a cost comparison to be conducted for any contract worth
more than $250,000 in a year for consulting services (PPGG, A.8555-C, Part O)..

Economic Development - NEED

Provides an additional $150 million in capital funding and $70 million in Excelsior Job tax credits to be disbursed through the ten regional economic development councils (extending current state support levels.)

  • Senate - rejects proposed REDCs resources
  • Assembly - rejects proposed REDCs resources

Provides $680 million in additional capital commitments under the “Buffalo Billion” program.

  • Senate - accepted
  • Assembly - accepted

Funding initiatives include: $180 million for equipment at Nano Utica; $110 million for NYSUNY and CUNY 2020 grants; $105 million to support the NY Genome Center and University of Buffalo; $50 million to continue the NY “Open for Business” marketing campaign; $46 million for ongoing ESDC programs including the Economic Development Fund and M/WBE programs; $31 million for NYSTAR program grants;  $30 million for Onondaga Lake regional redevelopment; $24 million for community redevelopment related to closure of an additional four corrections facilities; $12 million to support a Clarkson University/Trudeau Institute partnership; $5 million for competitive funding for tourism marketing plans; and $3.75 million to support the “Innovation Hot Spot” and state incubator programs.

  • Senate accepts all of the Executive Budget proposals except for the correction facility-related funding, and the SUNY/CUNY 2020 grants
  • Assembly accepted the proposed funding for Nano Utica, the UB Genome center, Onondaga lake recovery, and correctional facility transformation, and it proposed new funding approaches for SUNY and CUNY capital projects.

Reforms several business tax credit programs, including the investment tax credit, brownfield remediation tax credit, and others.

  • See Taxation section below for details.

Education / Higher Education / Workforce Development

Education
The budget provides an increase of $807 million in education aid for the 2014-15 school year, $608 of which is provided as formula-based school aid.

  • Senate proposal increases school aid by $811.9 million (includes $541 restoration of GEA cuts, an increase of $217 over the Executive proposal), and rejects and repurposes $74 million in fiscal stabilization grants to increase school aid. Phases out GEA in the 2016-17 school year.
  • Assembly proposal increases formula aid by $402 million over the Executive budget. Assembly proposes a GEA restoration of $367 million, which is $43.4 million over the Executive proposal. Proposes a multi-year plan to increase education funding by approximately $1 billion each year over the next four years to provide for the complete elimination of the GEA.

P-TECH program(S.6353-B/A.8553-B)
Another round of funding for P-TECH partnerships ($5 million)

  • Senate accepts this proposal (S.6353-C)
  • Assembly modifies this proposal to include Career and Technical Education (CTE) High Schools as eligible grant recipients (A.8553-C)

Smart Schools Initiative (S.6354-B / A.8554-B – Capital Projects)
Proposes a $2 billion general obligation bond act, to be on the ballot in November; use of funds is restricted to certain technology upgrades and construction of pre-K classrooms and after-school program space as needed.

  • Senate would consider with the inclusion of water and sewer districts.
  • Assembly accepts and adds $317 million to the Smart Schools Bond Referendum for non-public schools and schools for the disabled. Stipulates that funds could not be used for connectivity projects. Authorizes the funds for use in replacing Transportable Classroom Units.

Statewide universal full-day pre-k
Commitment for $1.5 billion over 5 years for universal pre-k

  • Senate plan would allocate $1.7 billion over the next five years to expand UPK in NYC. In 2014-15, $300 million would be available for UPK and $200 million in AIM funding would be available for after-school programs in NYC. The city would receive $20 million in unrestricted VLT Impact Aid. The plan would make available $145 million to districts (statewide) for UPK expansion. Senate proposal allows charters to be eligible to provide pre-K programs. Adds that for pre-k programs operated by charter schools, the school district of residence shall pay directly to the charter school for each student enrolled in the charter school's pre-k program who resides in the school district an amount equal to 100 percent of the total expenditures by the school district residence. Over the next five years, the Senate plan commits $2.7 billion to cover the cost of both UPK and after-school programs in NYC.
  • Assembly plan would allocate $1.475 billion for a five-year phase-in of pre-K; $75 million would be appropriated for the 2014-15 school year, and $200 million for the 2015-16 school year. There would be an income tax surcharge for New York City residents of 0.534 percent on incomes over $500,000 for the funding of pre-K and after-school programs in NYC. The plan would allocate the Executive's full day UPK as a grant; $100 million would be allocated for statewide UPK expansion.

After school programs (funded through casino and gaming revenue fund)
$720 million over five years for statewide after-school programs.

  • Senate rejects funding after-school programs through casino and gaming revenue (see above)
  • Assembly accepts the proposal and broadens to allow for restorations to the GEA, additional support for Foundation Aid.

Teacher Excellence Fund
$20 million for awards to “highly effective” teachers; eligible districts would submit an application to request funding; funding focused on schools with the greatest academic need; difficult-to-staff subject or certification areas and/or grade levels; and those at critical points in their career.

  • Senate rejects this proposal.
  • Assembly rejects this proposal.

School district reorganization and real property tax rates
When two or more districts propose reorganization that would result in impacted school tax rates in the areas served by the districts, the boards of education or trustees of the districts may opt to have the impact deferred for a one-year period and/or phased in over a period of up to 10 years.

  • Senate accepts the proposal.
  • Assembly accepts this proposal.

Higher Ed
New York State Science, Technology, Engineering and Mathematics Incentive Program
A new financial assistance program for undergraduates matriculated in an approved undergraduate program leading to a career in STEM at a state public university; requires a commitment to work in a STEM field within New York State for 5 years; program funding of $8 million.

  • Senate rejects this proposal (S.6356C – Part G-intentionally omitted).
  • Assembly modifies to include nursing students and students studying to become high school math or science teachers (A. 8556-C – Part G).

Provides $110 million for another round of NYSUNY2020 and NYCUNY2020 grants ($110 million)

  • Senate rejects this proposal.
  • Assembly accepts this proposal.

College-specific funding programs include:

  • $15 million for SUNY College of Emergency Preparedness, Homeland Security and Cybersecurity (Senate accepts. Assembly rejects, instead distributes $15 million in capital funding to SUNY and City University of New York (CUNY) schools that offer degrees in the same programmatic areas that would have been offered by the new college).
  • $180 million for Nano Utica (Senate and Assembly accept).
  • $55.75 million for the NY Genome Center (Senate and Assembly accept).
  • $5 million for Cornell University College of Veterinary Medicine (Senate and Assembly accept).
  • $10 million for Clarkson-Trudeau Partnership (partnership to foster biotechnology R&D) (Senate accepts, Assembly accepts).
  • $10 million for School of Pharmacy at Binghamton University (Senate accepts. Assembly accepts $2 million).

Workforce Development/Enhanced Youth Works Tax Credit
(S. 6359-B / A. 8559-B – Part U)


Employers will be eligible for an additional $1,000 credit for every at-risk youth employed full-time for an additional year ($500 for part-time status), and the annual credit allocation will increase from $6 million to $10 million.

  • The Senate accepts this proposal (S.6359-C)
  • The Assembly accepts this proposal but modifies language to add reporting requirements (Part U revenue bill) (A.8559-C )

Election and Campaign Finance Reform

(S.6353-B, Public Protection and General Government, Part H) Executive budget proposal includes the following:

Reduce corporate and LLC contributions to an aggregate total of $1,000 per year.

  • Senate accepts this*.
  • Assembly's proposal rejects a decrease in contribution limit, but accepts changes incorporating LLCs under the same statute governing corporate contributions.

Reduce contribution receipt limits for candidates for all offices.

  • Senate accepts this*.
  • Assembly modifies this by only placing lower limits on candidates who participate in the proposed system using taxpayer money for political campaigns.

Limit party transfers and direct campaign expenditures to candidates

  • Senate accepts this*.
  • Assembly modifies. The Assembly also introduces language barring a party committee from using housekeeping (or soft money) contributions for political communications with a candidate or elected officials name, likeness or voice.

Institute a voluntary matching funds system at a $6 to $1 rate for the first $175 of eligible contributions received. The system would be funded by a voluntary taxpayer check-off, from the abandoned property fund, private contributions from individuals and organizations, and transfers from thegeneral fund.

  • Senate accepts this*.
  • Assembly's version would rely on voluntary tax-payer check off, transfers from the general fund and a 10% surcharge on any settlements from action brought by the Martin Act to fund this system. The matching rate applies to the first $250 in eligible contributions.

Expand the definition of electioneering activities and require greater disclosure of independent expenditures.

  • Senate accepts this*.
  • The Assembly modifies the executive proposal.

Create an independent enforcement board within the State Board of Elections, the Chief Enforcement Counsel of which will be appointed by the Governor.

  • Senate accepts this*.
  • Assembly rejects the Executives proposal and replaces it with a five member “fair elections board” appointed by the governor and each legislative leader of the senate and assembly. They would be responsible for appointing an enforcement counsel and statutorily mandated staff.

Create new crime of corrupting the government and increase penalties for corruption, bribery and official misconduct.

  • Senate accepts this*.
  • Assembly rejects this.

Increase required disclosure of outside business relationships, including client names and duties performed.

  • Senate accepts this*.
  • Assembly rejects this.

*Prior to the Senate introducing their budget resolution the Senate Rules committee introduced four bills identical to the four subparts of the Governor's campaign and election reforms contained in Part H. The Senate's budget resolution says they will modify the Executive's proposal, but Part H is omitted in its entirety from the bill. As more information is made available details will be provided on our website.

The Assembly modifies the Executive proposal replacing it with the Fair Elections Act 2014; specifics will be available on our website.

Energy

Appropriations

Senate Budget - Rejects all of NYSERDA's All Funds, The Senate concerns with the Executive's proposed funding levels for the Public Service Commission.

Assembly Budget - The Assembly does not amend the All Funds appropriation of $28.33 million for NYSERDA. The Assembly provides $505,000 for the Public Utility Law Project in the Department of State's Budget. The Assembly provides an All Funds appropriation of $89.32 million, unchanged from the Executive proposal.

Authorize NYSERDA to finance DEC Climate Change Office (TED Part K)

  • Executive Budget - Authorize the NYSERDA to finance the Department of Environmental Conservation's climate change program, from an assessment on gas and electric corporations. This provision has been in the budget for multiple years.
  • Senate Budget rejects the transfer
  • Assembly Budget accepts proposal

NYSERDA to Transfer $913,000 to the General Fund (TED Part L)

  • Executive Budget - Authorize a payment of up to $913,000 from the NYSERDA for West Valley nuclear.
  • Senate Budget Accepts the Governor's recommendations
  • Assembly Budget – accepts proposal and transfers an additional $20M for General Fund relief.

PSC Administrative Efficiencies (TED Part R)

  • Executive Budget proposes to streamline the process for overseeing telephone corporations, reviewing violations of the shared meter law, and confirming cable franchises. The streamlining initiatives are intended to remove administrative burdens of the DPS without having a reduction in oversight.
  • Assembly Budget –rejects proposal
  • Senate Budget Accepts the Governor's recommendations

18-A (TED Part S)

Executive Budget - In accordance with the recommendations of the New York State Tax relief Commission, Part S of the TED Article VII legislation, would reduce the Public Service Law § 18-a(6) Temporary State Energy and Utility Service Conservation Assessment (Temporary Assessment) by a total of $200 million per year by eliminating the assessment on industrial utility customers and accelerate the phase out for all other customers. Specifically, the bill would eliminate the assessment for electric customers with a monthly peak demand of one thousand kilowatts or more in the last preceding calendar year and gas customers of one hundred thousand dekatherms or more, and all customers of municipal electric and gas utilities and water works corporations.

  • Senate Budget- Accepts the Governor's recommendations.
  • Assembly Budget – the Assembly has proposed to provide immediate relief from 18-a only for residential customers. Additionally, in 2016 all other customers will receive relief in 2016 when the current law rate will go from 1.5 to 0.83 percentum, and for LIPA customers from .5 to 0.36 percentum.

New Assembly Proposals

TED Part CC: Directs not less than fifteen million dollars from the Green Bank to cover costs associated with installing any improvement to a heating or cooling system which will increase efficiency by at least ten percent or reduce fuel usage by at least ten percent and lead to a significant reduction in carbon emissions. Such improvements shall include, but shall not be limited to, the installation of a high efficiency boiler or furnace, an improvement to and/or replacement of a burner in a boiler, and any other improvement to a heating system that satisfies the criteria set forth in this section.

PPGG Part N: amends the public service law to create the state office of the utility consumer advocate. This proposal is substantially similar to A. 6239-a (Dinowitz) / S.4550 (Savino).

New Senate Proposals

TED Part II: The Senate advances language to establish a Northern New York Power Proceeds Allocation Board, similar to the Western New York Power Proceeds Allocation Board, to allow unallocated power from the FDR hydropower facility in Massena to be monetized and used for economic development purposes within the local region.

TED Part KK: The Senate proposes language to request that the Long Island Power Authority enter into no power purchase agreements with any new base load generating facility until every reasonable attempt has been made to have repowered sites serve Long Island's energy needs, and that financials for all proposed facilities be made available to the Senate and the Assembly.

TED Part QQ: The Senate adds language to direct the New York State Energy Research and Development Authority to make payments on grants to farm operations no later than ninety days after notification of any funding award.

TED Part RR: The Senate adds language to direct the Public Service Commission to conduct a study of the economic and environmental costs and benefits of the State's net energy metering programs, similar to S 5149 ( Maziarz) / A 7679 (Simotas).

TED Part VV: The Senate adds language to lay out a repowering plan for the existing generating facility in the Village of Port Jefferson, and includes an incentive package to aid in the remediation of the footprint for the new plant.

TED Part YY: The proposes a sweep of $165.6M in NYSERDA clean energy funds, and a $52.9 M in RGGI proceeds to the general fund.

Senate Proposals that appear in the Resolution without language.

  • The Senate will urge NYSERDA and the Public Service Commission to study and report the impact of the Regional Greenhouse Gas Initiative assessments imposed on in-state versus out of state generators and the impacts on New York ratepayers.
  • The Senate will advance language to require the State study whether fees assessed and allocated outside of the budget process are having an adverse impact on New York ratepayers

Environment

Appropriations

Assembly Budget – Includes a proposed $10 million increase in Environmental Protection Fund (EPF) allocations over the Executive proposal for a total of $167 million. The following programs would be increased over the Executive proposal by the following amounts:

  • Municipal Recycling $250,000
  • Inner City/Underserved Waterfront Revitalization $500,000
  • Municipal Parks $500,000
  • Hudson River Park $2 million
  • Zoos, Botanical Gardens and Aquaria $1 million
  • Land Acquisition $1 million
  • Albany Pine Bush Commission $250,000
  • Invasive Species $1 million
  • LI Pine Barrens Commission $250,000
  • Water Quality Improvement Program $1 million
  • Non-agricultural, non-point source pollution abatement $1 million
  • Finger Lakes/Lake Ontario Watershed $250,000

In addition, the Assembly proposal includes $1 million in EPF resources for Children's Environmental Health Centers of Excellence. A report issued by the Mount Sinai Children's Environmental Health Center, in December recommended the creation of a statewide network of Centers of Excellence in Children's Environmental Health and that this network should be funded on a permanent and sustainable basis and coordinated through the New York State Department of Health.

Senate Budget - The Senate provides to $200,000 to DEC to analyze significant risks to the public health and the environment from leaking, large-scale, heavily contaminated, hazardous waste landfills. The Senate provides $2,000,000 for priority dredging and invasive projects, $400,000 in funding for the Beacon Institute, and $500,000 in funding for a “Sewage-Right-to-Know” program. Additionally, the Senate Health Budget provides $1 for Children's Environmental Health Centers of Excellence.

Furthermore the Senate increases the EPF by $43 million in the following manner:

  • $900,000 increase for the Central Pine Barrens Commission;
  • $1,000,000 increase for the Finger Lakes Lake Ontario Watershed Protection Alliance;
  • $500,000 in additional funds for Soil and Water Conservation Districts
  • Provides $3,000,000 in funds for the Genesee County wastewater treatment facility
  • Provides $250,000 in funds for Manhasset Bay Waterfront improvements
  • Provides $6,700,000 in funds for EPCAL sewer plant upgrades
  • Provides $7,000 in support for Town of Perry landfill capital costs
  • Provides $2,000,000 for a water treatment plant in the Village of Arcade

Pesticide Product Registration (TED Part H)

  • Executive Budget - proposal would make permanent the current pesticide registration fees and the specific timeframes for the registration of pesticides. Additionally, the proposed language would require the reporting of all sales of each pesticide by county for the entire calendar year.
  • Senate Budget – The Senate budget extends the pesticide registration fees for three years and rejects efforts to reduce needless reporting requirements.
  • Assembly Budget The Assembly rejects proposed changes to pesticide database reporting requirements and adds provisions to increase information availability to unqualified individuals, and increase reporting by applicators. In addition, the Assembly accepts a proposal to mak current pesticide fees permanent.

Requires Emergency Back-up Power at Gas Stations (TED Part M)

  • Executive Budget proposes to amend Section 192-h of the Agriculture and Markets Law to require that all retail gasoline outlets near I-87, I-90, I-84, I-88, I-86/State Route 17, I-81, I-390 and I-190 and evacuation routes be prewired for using a generator which is capable of providing adequate electricity for operations. The language also amends Section 1854 of the Public Authorities Law to authorize NYSERDA to provide grants for prewiring and access to a pool of generators administered by NYSERDA.
  • Senate Budget Rejects
  • Assembly Budget Accepts proposal

Brownfield Cleanup Program (REV Part Q)

  • Executive Budget extends the Brownfield Cleanup Program (BCP) for ten year. The remedial and the tangible property credits are bifurcated; a no-credit fast track is created, and would expand the program to include additional sites. To be eligible for the tangible property credits, a property must be vacant for at least 15 years or vacant and tax delinquent for 10 or more years, the value of the property must be less than the cleanup costs, and be an economic development project
  • Senate Budget – Extends tax credits for ten years until December 31, 2025, rejects the remedial and the tangible property credits bifurcation. The proposal would amend the definition of a brownfield; thereby require applicants to prove that site is heavily contaminated by on-site generated wastes to get into the BCP, and the site must statutory condition which define underutilization.
  • Assembly Budget rejects this proposal

Superfund Program (PPGG Part I p.145)

  • Executive Budget The budget would authorize the State to issue an additional $100M in bonds to provide funding for the State Superfund Program. Currently, the State Superfund program is being supported by prior year's bond authorization.
  • Senate Budget (TED Part XX) the Senate rejects $100 million in new Superfund bonding authority, and instead restores $793 million in Superfund bonding authority over the next seven years, and provides $10M for the Environmental Restoration Program (Municipal Brownfield Program).
  • Assembly Budget Increases the financing authorization for the Superfund by $1 billion over a period of 10 years.

New Assembly Proposals

REV Part LL: Biofuel tax credit. The Assembly proposes to require all heating oil sold in New York State to contain at least two percent biodiesel after July 1, 2015, and will change the existing tax structure to incentivize the use of at least five percent biodiesel.

TED PART FF Drug Disposal: The Assembly includes legislation to require DEC to expand the existing collection program for unwanted pharmaceuticals to nursing homes and to institutions located in Long Island.

New Senate Proposals

TED Part UU: The Senate adds language to extend by two years the deadline for heavy-duty diesel vehicles to be retrofitted with diesel particulate filter devices as currently required by the Diesel Emission Reduction Act (DERA).

Financial Services

Enhance consumer protection through no-fault automobile insurance fraud reform (TED S.6357/A8557 Part T).

This proposal gives the Superintendent of DFS the power to prohibit health providers from requesting payment for health services rendered after a determination of fraudulent activity on behalf of the provider and to levy fines of up to $10,000 per fraudulent offense. This provision also gives the Superintendent the authority to examine and audit health providers at any time. No funding allocation was included.

  • Senate-Accepts and adds a provision to retroactively cancel fraudulent auto insurance policies and increases criminal penalties for fraudulent insurance claims.
  • Assembly- Rejects Executive Budget proposal

Establish new licensing requirements for title insurance agents, closers, and solicitors in New York State (TED S.6357/A8557 Part V).

These entities would be required to get licensed to practice in this state. The Superintendent of DFS would be empowered to revoke or suspend any license of any agent who violates the Insurance Law or is untrustworthy or incompetent. The State would collect $80,000 annually in licensing fees.

  • Senate-Accepts with modifications and adds language to reform sales tax collection on title insurance products.
  • Assembly-Accepts Executive Budget proposal

Health Care / Health Insurance

Out of Network (S.6357/A.8557 PART U)

Expands some health insurance plan network adequacy requirements and requires insurers to provide access to out-of-network providers if there is not an in-network provider with appropriate training or experience or within a reasonable geographic area.

Sets forth levels of reimbursement for plans that offer out-of-network coverage to 70% of UCR (the 80th percentile of FairHealth).

Requires multiple disclosures of anticipated costs for both insurers and provider. These include requiring insurers to disclose anticipated out-of-network costs for insured and prospective customers and requiring physicians to disclose real and anticipated costs when requested by patients.

Establishes a dispute resolution process to adjudicate out-of-network claims disputes including balance billing and creates “hold harmless” protections for consumers where required disclosures are not made.

Senate

  • Modifies by requiring insurers that offer out-of-network benefits to provide “significant” coverage of the UCR costs of out-of-network health services, and requiring those same insurers to offer at least one benefit option that covers 80 percent of UCR (setting a base year of 2012 for the establishment of UCR rates);
  • Eliminates the requirement that physicians include a claim form for third party payers with their patient bills; adds referrals without written patient consent in the definition of a “surprise bill;”
  • Requires the ADR entity to utilize state licensed physicians in the same or similar specialty of care as the physician that is involved in a dispute resolution and stipulates that regardless of the outcome of a dispute resolution, a physician's payment for out-of-network services will not be less than 80 percent of the UCR.

Assembly

  • Modifies to require that health care professionals disclose network affiliations to perspective patients on request and automatically to patients at the time of non-emergency services;
  • Expands the definition of “surprise billing” to situations where a participating physician is unavailable at time of care in a hospital or ambulatory surgical center;
  • Creates an out-of-network reimbursement rate workgroup to review current out-of-network reimbursement rates and make recommendations regarding an alternative rate methodology.

Health Infrastructure Improvement

Establishes a $1.2 billion capital bonding program over the next seven years for improvements to infrastructure such as primary care facilities, expands health facility restructuring loans for not-for-profit health centers and nursing homes and creates a pilot program authorizing up to five businesses to expand the use of private investment in health care projects. The budget language additionally streamlines the Certificate of Need processes for some providers of health care, authorizes limited services clinics within retail operations and defines the term “urgent care.” (S.6358/A.8558 PART A, Sections 8-22)

Senate

  • Accepts and modifies, establishing the Capital Restructuring Financing Board to evaluate applications and make award determinations, requiring Public Authorities Control Board approval of all awards, requiring prior notification to the Legislature of awards, and requiring an annual written report to the Legislature;
  • Expanding the Health Facility Restructuring Program to include not-for-profit residential health care facilities, not-for profit diagnostic and treatment centers, and other not-for-profit health care entities; Expands private equity demonstration program to up to ten business corporations.

Assembly

  • Accepts and adds additional providers to apply and adds reporting requirements;
  • Rejects proposal authorizing business corporation private equity demonstration program for capital investment in health care projects.

HCRA reauthorization

Extends HCRA taxes through 2017 and allows for the use of $65 million of the Covered Lives Assessment for the support of the Statewide Health Information Network (SHIN NY), so long as the assessment raises in excess of $1.045 billion through 1/31/17. (S.6358/A.8558 PART B, Section 17)
Senate

  • Rejects the collection of Covered Lives Assessment in excess of the current statewide limit of $1.045 billion to raise $55 million to support the Statewide Health Information Network of New York (SHIN-NY);
  • Modifies by permanently extending Health Care Initiatives and Tobacco Control and Insurance Initiatives Pools and fund programs subject to appropriation by extending authorization for three years; permanently extending the authorization for Area Health Education Centers (AHEC), the Empire Clinical Research Investigator Program (ECRIP) and the Doctors Across New York program.

Assembly

  • Rejects proposal to make future HCRA allocations subject to appropriation and modifies down by $15 million, the capital costs associated with the Statewide Health Information Network for New York (SHIN-NY).

Medicaid Redesign

Eliminates “prescriber prevails” provisions in Medicaid fee-for-service and managed care programs. (S.6358/A.8558 PART C, Sections 1-3)

Senate

  • Rejects the elimination of “prescriber prevails” and modifies by expanding the authorization of “prescriber prevails” provisions in Medicaid managed care to all drug classes; and authorizes the Commissioner of Health to require prior authorization for fee-for-service drugs meeting the CDRP criteria until the DUR Board has an opportunity to evaluate the drug by prohibiting such authority and requiring the DUR Board to convene monthly and review all therapeutic classes on an annual basis;

Assembly

  • Rejects the proposal to eliminate prescriber prevails for brand name drugs that have FDA A-rated generic equivalents; and the proposal to allow the CDRP to require prior authorization for drugs meeting Clinical Drug Review Program (CDRP) criteria prior to Drug Utilization Review (DUR) evaluation.

Authorizes the Commissioner to require further supplemental rebates from name-brand drug manufacturers that provide for Medicaid fee-for-service pharmacy programs. (S.6358/A.8558 PART C, Section 7)

  • Senate - Rejects the proposal.
  • Assembly – Rejects the proposal.

New Senate Items

  • Prohibits Average Acquisition Cost (AAC), as determined by Department of Health surveys, from being used by DOH as a method for establishing a maximum acquisition cost for pharmacy reimbursement; Eliminates the authority of the Commissioner to change the rate of payment for the Cost of Dispensing (COD) of drugs,
  • Rejects the Executive's proposal to provide $53.9 million for operations of the NY State of Health.

New Assembly Items

  • Adds provisions to authorize the use of medical marijuana for certified patients and budgets $65.89 million in revenue related to the implementation of medical marijuana legislation.

Labor / Human Resources

For higher income State Retirees, the State will eliminate reimbursement of Supplemental Medicare Part B premiums but will continue reimbursement of the regular Medicare Part B premiums of $104.90 per month in 2014.

  • Senate – Rejects the Executive Budget proposal
  • Assembly – Modifies Executive Budget proposal by increasing the income threshold where reimbursement will stop to $107,000 for a single Medicare recipient and $214,000 for married Medicare recipients.

Racing and Gaming

Executive budget proposal includes the following:

Extend Monticello VLT rates, certain Pari-Mutuel Tax Rates and Simulcast provisions, and video lottery gaming vendor's capital awards program for one year (Revenue, S.6359-B/A.8559-B, Part BB).

  • The Senate proposal accepts extending the Monticello VLT rates for one year and modifies the extension of vendor capital award program for one year by including Monticello-Concord preferential tax rate.
  • The Assembly proposal accepts this.

Increase the regulatory racing surcharge on handles 0.5% to 0.6% to cover the cost of regulation (Revenue, S.6359-B/A.8559-B, Part D).

  • The Senate proposal rejects increasing the racing regulatory fee.
  • The Assembly proposal accepts this.

The Assembly's proposed budget includes additional legislation to allow:
The Catskill regional Off-Track Betting Corporation to operate in New York City (TED, A.8557-C, Part HH)

  • If this were to pass, the legislation would create a Catskills OTB Corporation Site Selection Board and any facility located in any of the five boroughs would have to recognize the NYC OTB collective bargaining representatives and abide by such negotiated agreements by those representatives and the Catskills OTB.
  • Redirecting 2% of the purse enhancement money from thoroughbred tracks towards a jockey organization to provide health, life, disability or pension benefits for jockeys. (Revenue, A.8559-C, Part NN)
  • Enhance the current 10% free play allowance to 15% for race-track gaming facilities. (Revenue, A.8559-C, Part PP)

The Senate's proposed budget also includes legislation to allow:

  • Redirecting 2% of the purse enhancement money from thoroughbred tracks towards a jockey organization to provide health, life, disability or pension benefits for jockeys. Additionally, $250,000 from purse enhancements will be provided to the Gaming Commission for the purposes of fan development (Revenue, S.6359-C, Part FFF).
  • Adds language to require a franchise corporation to share a portion of its revenues with a regional OTB (Revenue, S.6359-C, Part GGG).
  • Allow VLTS at International airports located in a city of one million or more (Revenue, S.6359-C, Part HHH).
  • Allow VLT facilities to operate at 6AM but no more than twenty hours per day; increase the free play percentage from 10 to 15%; and increase the number of VLTs allowed at Nassau and Suffolk OTB to 2,000. (Revenue, S.6359-C, Part CCC)
  • Increase the marketing allowance from 10-12.5% for VLT gaming facility located within a zone of Native American exclusivity. (Revenue, S.6359-C,Part DDD)

Taxation / Revenues / Tax Credits

Corporate Tax Reform (Part A) - This proposal largely tracks prior draft legislation. The following provides an overview of key provisions of these corporate franchise tax reform provisions, and a separate, more detailed review of the Article 9A reforms will be available soon. Key provisions include:

The Article 32 Bank Tax is repealed, Article 32 taxpayers are subject to the corporate franchise tax.

  • Senate – accepted
  • Assembly - accepted

The ENI rate is reduced to 6.5% effective 1/1/16; the capital base cap is increased to $5 million for all non-manufacturing taxpayers; the 1.5% alternative minimum tax is repealed; and a new fixed dollar minimum tax schedule is adopted for sub-C taxpayers, with a maximum payment of $200,000, and for “qualified NY manufacture” taxpayers with a top payment of $4,500.

  • Senate - ENI rate reduction and capital base cap change were accepted by both Senate and, Senate rejected proposed FDM brackets for receipts over $50 million.
  • Assembly - ENI rate reduction and capital base cap change were accepted and; Assembly accepted fixed dollar minimum changes

Combined reports are required to include: businesses with more than 50% stock ownership and engagement in a unitary business; captive REITs/RICs not combined under Article 33; and certain alien corporations treated as domestic corporations under the IRC. Taxpayers are allowed a seven year non-revocable election to combine based on ownership only.

  • Senate modified provisions regarding to captive insurers and non-taxpayers that could be subject to Article 9 and 33, and for three years allows for the election of a taxpayer's federal consolidated group.
  • Assembly accepted Executive Budget proposal

The current subsidiary capital exemption is replaced with an exempt investment income/taxable business income regime.

  • Senate – accepted
  • Assembly - accepted

An economic nexus standard is imposed for the corporate franchise tax and the MTA surcharge; Article 9-A single sales factor apportionment method is adopted for determining the MTA surcharge.

  • Senate - Economic nexus provisions adopted; apportionment factor amendment rejected by the Senate.
  • Assembly - Economic nexus provisions adopted and; apportionment factor amendment accepted by the Assembly.

Pre-reform net operating losses are converted into credits to be applied against ENI-based tax liability, with a 20 year carry forward.

  • Senate - Accepted; Senate also allows option to use 50% of NOL credits in two consecutive tax years.
  • Assembly - Accepted

ITC and Manufacturers' Credit (Part R)

Defines “manufacturer” as a taxpayer or combined group with more than 50% of gross receipts from the sale of goods produced by manufacturing; excludes power generation and distribution, natural gas extraction and distribution, co-generated steam, film/TV/commercial production and fuel blending.

  • Senate - Rejected by the Senate, but Senate includes as manufacturers taxpayers with 2,500 manufacturing jobs and $100 million in manufacturing property in NYS.
  • Assembly - Accepted

Defines “qualified New York manufacturer” as a taxpayer or combined group that is a manufacturer with either at least $10 million or 100% of its manufacturing property in NYS; or a taxpayer with 2,500 manufacturing employees and $100 million in manufacturing property in-state.

  • Senate - Accepted $10 million threshold; Senate accepted 2,500 manufacturing jobs/ $100 million in manufacturing property language.
  • Assembly - Accepted $10 million threshold and Assembly rejected 2,500 manufacturing jobs/ $100 million in manufacturing property language.

Limits the Article 9-A investment tax credit to “qualified NY manufacturers” and to qualified agri- and mining business;” defines qualified agri-business and mining as taxpayer/combined group with at least 50% of gross receipts from such in-state activity; eliminates the ITC for air and water pollution control equipment, security broker/dealers, investment advisory services, and film production; prohibits the ITC for property that had already served as the basis for the ITC or EZ-ITC;

  • Senate - rejected it and left ITC eligibility generally as is in current law.
  • Assembly - accepted this proposal; Senate rejected it and left ITC eligibility generally as is in current law.

Creates a new refundable credit under Articles 9A and 22 equal to 20% of real property taxes paid by a qualified NY manufacturer; excludes PILOT payments, any RPTs deducted from ENI or federal AGI calculations, and RPTs used to calculate another tax credit. Recaptures credits if RPTs are subsequently lowered after a legal challenge or other actions.

  • Senate - modified this provision to use the existing definition of manufacturer, also allows the credit for PILOTs that were the basis of the settlement of a certiorari challenge.
  • Assembly - rejects this proposal in its entirety

Reduces the Article 9-A entire net income tax rate to zero, effective 1/1/14, for a qualified NY manufacturer with a MTCD property and wage apportionment factor of zero (the bill also proposes the adoption of single sales factor apportionment for purposes of the MTCD surcharge.)

  • Senate - applies the manufacturer's ENI zero rate statewide.
  • Assembly - accepts this proposal; Senate applies the manufacturer's ENI zero rate statewide.

Estate Tax Reform

Increases the Estate Tax exclusion threshold to $5.25 million (and future indexing); phases down the tax rate to 10% by FY 2017; subjects certain gifts to be added back for estate tax purposes (Part X).

  • Senate - adopts the Executive Budget estate tax reforms, but rejects its proposed add-back of federally taxable gifts;
  • Assembly - modifies the Executive Budget estate tax reforms to increase the exemption to $3 million by 4/1/15 and maintain the top rate of 16% for taxable estates over $10 million.

The bill also closes the so-called “resident trust loophole,” to impose state income taxes on distributions from certain non-resident and exempt trusts (Part I).

  • Senate – modified
  • Assembly - accepted

Tax Credits

Extends the 20% credit for TV commercial production through 12/31/16; it is currently set to expire at the end of 2014 (Part O).

Extends and reforms the Brownfield Cleanup Program and its redevelopment tax credit. Tax credit changes include: limits tangible property credit eligibility to vacant or tax delinquent properties and other “priority” sites and limits the availability of the credit to five years after completion of cleanups; terminates sites in program not completed on a timely basis; repeals the environmental insurance credit. Other reform issues discussed under “Environment” above.(Part Q).

  • Senate - extends tax credits thru 12/31/25, rejects the remedial and the tangible property credits bifurcation, and amend the definition of a brownfield
  • Assembly -rejected the Executive Budget proposal.

Amends the Excelsior Jobs credit program to provide participants with a credit against their payment of telecommunications excise tax (Part T).

  • Senate – accepted
  • Assembly - accepted

Conforms Tax Law provisions to recent Labor Law amendments to the Youth Works Tax Credit; provides an additional credit(s) for extended employment of eligible youth (Part U).

  • Senate - accepted
  • Assembly - accepted; Assembly adds additional reporting requirements.

Extends the alternative fuel use credit (for E85, CNG and hydrogen) for two years through 9/1/2016 (Part V).

  • Senate – accepted
  • Assembly - accepted

Other Provisions

Repeals the state tax on agricultural co-operatives (Part S).

  • Senate – rejected proposal
  • Assembly – accepted proposal

Repeals the stock transfer tax, which under current law is collected and fully rebated to taxpayers with no net revenues to the state (Part CC.)

  • Senate – accepted
  • Assembly – rejected

Allow self-employed individuals to file MTA mobility tax returns with their personal income tax returns (Part DD).

  • Senate – accepted
  • Assembly - accepted

Additional Proposals

The Senate revenue bill included:

  • a 2% spending cap
  • permanent indexing of PIT brackets and standard deduction
  • a $250 million appeals bond cap regarding the Master Settlement Agreement
  • a number of new and/or enhanced tax credits, including those for: education contributions, ethanol production, musical/theatrical productions, farmland sales, “middle income” housing, green roofs, and others.

The Assembly revenue bill included:

  • a repeal of the minimum wage tax credit
  • an acceleration of existing Article 9-A rate reductions so that the 4.9% rate is achieved by 1/1/15 instead of 1/1/18 as under current law
  • authorization for NYC to adopt a city PIT surcharge to support pre-K of 0.5% on incomes over $500,000
  • several new and/or enhanced tax credits, including those for upstate film production and musical/theatrical productions

Technology / Telecommunications

Allows the PSC to forgo application of certain regulatory provisions to telephone corporations if such provisions are not necessary to ensure just and reasonable rates, charges and practices (TED S.6357/A8557 Part R).

Such provisions include the requirements to: post rates and schedule with PSC; PSC approval to construct telephone lines; PSC permission for company reorganization; and PSC permission to own and issue telephone company stock PSC streamlining of telecommunications regulation, shared metering and Cable Franchising

Reduces the punitive assessment on landlords where a shared metering condition follows a customer complaint or is discovered by a utility. Reduces the additional assessment to 25% of the charges for service measured by the shared meter for 12 months.

Streamlines the confirmation of cable franchises and renewals by establishing a process that subjects franchises to the PSC's minimum franchising standards, rather than requiring PSC approval.

  • Senate Accepts - Executive Budget proposal
  • Assembl Rejects - Executive Budget proposal

Directs the Public Service Commission to undertake a comprehensive examination of telecommunication services to underserved areas in New York State (TED S.6357-C Part ZZ)
PSC could compel telephone corporations to make available records, documents, and reports necessary to assist in commission's study.

PSC will issue a report on its findings, conclusions and recommendations to the governor, and the Senate and Assembly leadership.

  • Senate one-house proposal

Transportation

Funding for local highway and bridge programs under the Consolidated Highway Improvement Program (CHIPS) and Marchiselli program is maintained at last year's level of $477.8 million.

  • Senate – Accepts the Executive Budget proposal and commits to increasing it if funds become available.
  • Assembly – Accepts the Executive Budget proposal

DOT interstate commerce vehicle registration fees and the railroad safety fees will now be deposited into the special reserve and obligation account of the dedicated Highway and Bridge trust fund.

  • Senate – Proposes the Bridge Bill which would phase out non-capital expenses from the Dedicated Highway and Bridge Trust Fund.
  • Assembly – Modifies language to insure that funds are used to support roadside truck inspections.

For the NYS Thruway Authority, continuation of $86 million in funding for the financing of Troop T that patrols the Thruway, offsetting the need for a commercial toll increase.

  • Senate – Accepts Executive Budget proposal
  • Assembly – Accepts Executive Budget proposal

Provides $155 million in new state funding under the New York Works Program to fast track highway and bridge projects; $45 million for essential project engineering and $25 million to enhance transit, rail and aviation programs.

  • Senate – Accepts Executive Budget proposal
  • Assembly – Sub-allocates $25 million ; $10 million for airport revitalization, $10 million for freight rail capital projects and $5 million for non-MTA transit systems.

MTA operating support to increase by $85 million to $4.3 billion; Non-MTA transit systems' operating support to increase by $7.9 million to $761 million.

  • Senate – Accepts Executive Budget proposal
  • Assembly –Accepts Executive Budget proposal

Appropriate $2.5 million for feasibility study of the Northern Tier Expressway (Route 98) between Watertown and Plattsburgh.

  • Senate – Accepts Executive Budget proposal
  • Assembly – Accepts Executive Budget proposal

Travel and Tourism

Market-NY program to provide competitive grants for regional promotion of events and tourism would receive $5 million (S.6353-B/A.8553-B Aid to Localities, Department of Economic Development)

  • Assembly proposal rejects funding to Market-NY.
  • TSenate proposal includes the Executive's proposal but eliminates oversight by the regional economic development councils.

Taste-NY which, in 2012, was funded under the Market-NY program to help market NYS food and food products, would receive $1.1 million (S.6353-B/A.8553-B Aid to Localities, Department of Agriculture and Markets)

  • Assembly proposal accepts this funding.
  • Senate proposal accepts this funding.

New York Wine and Grape Foundation's funding is the same as last year, $713,000 (S.6353-B/A.8553-B Aid to Localities, Department of Agriculture and Markets).

  • Assembly proposal includes an additional $250,000 for a total of $963,000.
  • Senate proposal includes an additional $287,000 for a total of $1,000,000.

Implement the “Open for Fishing and Hunting II” initiative which would create a NYS Adventure License for things such as lifetime hunting and fishing licenses, and boating certifications as well as for the Empire Pass. Provisions in the Executive budget would also create new 3 and 5 year hunting, fishing and trapping licenses, reduce the cost of 7-day fishing licenses and allow promotional discounts on designated days and six additional free fishing days (TED, S.6357-B/A.8557-B, Part I

  • Assembly proposal modifies this
  • Senate proposal modifies this

Limit liability of landowners who make open their properties for public recreation (TED, S.6357-B/A.8557-B, Part I)

  • Assembly proposal rejects this provision.
  • Senate proposal rejects this provision.

Repeal the boxing and wrestling exhibitions tax (Revenue, S.6359-B/A.8559-B, Part Y).

  • Assembly rejects this.
  • Senate rejects this.