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MEMORANDUM IN SUPPORT

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

AN ACT to provide for the utilization of utility assessment funds (A); and to provide for the use of petroleum overcharge restitution funds (B); and to authorize the dormitory authority of the state of New York to provide funding for the Cornell University theory center (C); and to amend chapter 432 of the laws of 1997 relating to the community enhancement facilities assistance program, in relation to the total authorized bonding amount for such program (D); and to authorize the New York State urban development corporation to issue bonds for purpose of creating or retaining technology related jobs (E); and to amend the vehicle and traffic law and the penal law, in relation to reducing the blood alcohol level threshold for determination of intoxication (F); and to amend chapter 533 of the laws of 1993 amending the vehicle and traffic law and the correction law relating to the suspension and revocation of driver’s licenses upon conviction of certain drug-related offenses, in relation to the effectiveness thereof and to repeal section 8 of chapter 533 of the laws of 1993 amending the vehicle and traffic law and the correction law relating to the suspension and revocation of driver’s licenses upon conviction of certain drug-related offenses, in relation thereto and to repeal section 28 of part E of chapter 58 of the laws of 1998 relating to a report of the division of criminal justice services, in relation thereto (G); and to amend the vehicle and traffic law, in relation to repeat offenses for driving while intoxicated and related offenses (H); and to amend the vehicle and traffic law, relating to distinctive license plates and to amend provisions relating to the issuance of special or distinctive design plates and distinctive license plates issued to veterans and members of the military; and to repeal certain provisions of such law relating thereto (I); and to provide the annual authorization for the State’s CHIPS and Marchiselli local highway capital assistance plans; and to amend the highway law, in relation to construction or improvement by the department of transportation partly at municipal expense (J); and to amend the state finance law, in relation to costs of the department of transportation for snow and ice control on state highways and certain other personal services costs (K)

PURPOSE:

This bill contains various provisions needed to implement the Transportation and Economic Development portion of the 2001-02 Executive Budget.

SUMMARY OF PROVISIONS, EXISTING LAW, PRIOR LEGISLATIVE HISTORY AND STATEMENT IN SUPPORT:

Part A – Utility Assessments — New York State Energy Research and Development Authority (NYSERDA).

This bill authorizes the New York State Energy Research and Development Authority (NYSERDA) to obtain revenue for certain of its programs from assessments against gas corporations and electric corporations, pursuant to section 18-a of the Public Service Law. NYSERDA is authorized to finance its Research, Development and Demonstration Program and its Policy and Planning Program with revenues from assessments.

Section 18-a of the Public Service Law enables the Department of Public Service to assess gas corporations and electric corporations for the expenses of NYSERDA’s Research, Development and Demonstration Program and its Policy and Planning Program.

This is an annual Article VII bill, last enacted in the 2000-01 Budget. Without this bill, NYSERDA could not continue operating necessary energy programs in the 2001-02 State fiscal year.

Part B – Federal Petroleum Overcharge.

This bill allows the transfer of $1.9 million of Petroleum Overcharge Restitution (POCR) funds to the New York Power Authority (NYPA) to fund energy efficiency and conservation programs benefitting New York State. In return, NYPA will transfer $1.9 million to the State’s General Fund.

This bill directs that, on or before March 31, 2002:

The bill also ensures that the use of these funds does not contravene existing NYPA bond covenants or contractual obligations. This is an annual Article VII bill.

POCR funds became available to New York State in the 1980s as a result of Federal court settlements with energy producers who were overcharging consumers. NYPA administers these programs. This bill allows these moneys to be expended on energy efficiency and conservation purposes which will benefit New York State consumers. In addition, the State will realize additional General Fund revenue as a result of this transaction.

Part C – Cornell Theory Center.

This bill authorizes the Dormitory Authority to provide up to $1.2 million to Cornell University to support operations of the Cornell Theory Center for fiscal year 2001-02.

The Cornell Theory Center provides businesses and academia with affordable access to the latest in supercomputer technology. This bill enables the Center to continue to deliver these services, while providing the Dormitory Authority with the opportunity to avail itself of the resources of Cornell University to address financial and labor management issues.

The 2000-01 Enacted Budget also authorized the Dormitory Authority to provide up to $1.2 million for the support of the Cornell Theory Center.

Part D – Community Enhancement Facilities Assistance Program.

This bill amends Chapter 432 of the Laws of 1997 to reduce the total amount of authorized Community Enhancement Facilities Assistance Program (CEFAP) bonding by $81.5 million — from $425 million to $343.5 million.

Chapter 432 of the Laws of 1997 created CEFAP and established $425 million in bonding authority. This bill redirects $60 million in bonding authority specifically to high technology initiatives that have a strong potential to create jobs and spur economic growth. In addition, it reflects the use of $21.5 million from the Debt Reduction Reserve Fund in lieu of authority bonding to finance a portion of the CEFAP program.

Part E – High Technology Capital Program.

This bill authorizes the Urban Development Corporation to issue bonds or notes in an aggregate principal amount not to exceed $60 million for grants or loans for capital projects which will support the creation or retention of technology related jobs.

This bill reflects the redirection of $60 million in bonding authority from the Community Enhancement Facilities Assistance Program (CEFAP) to support high technology initiatives that have a strong potential to create jobs and spur economic growth.

Part F – Conforms State Vehicular Blood Alcohol Standards to Federal Requirements.

This bill changes the legal standard for driving while intoxicated by lowering the blood alcohol content limit from under .10 percent to under .08 percent. This bill also makes other changes designed to significantly reduce the incidence of driving while intoxicated, and to conform State penalties with Federal law and avoid significant Federal highway aid sanctions.

This bill amends the Vehicle and Traffic Law and the Penal Law to:

In addition, the bill makes various other amendments to improve the ability to apprehend and prosecute intoxicated drivers and to increase penalties for individuals who repeatedly buy alcohol for underage drinkers. Current law provides for lesser penalties and limitations upon driving while intoxicated, drug use, and related offenses.

This bill is similar to the Governor’s Program Bill initially introduced in 1999 as the DWI Omnibus Act.

Passage of this bill can reasonably be expected to limit instances of driving while intoxicated or under the influence of drugs; thereby reducing the number of lives lost and properties damaged as a result of illegal intoxication.

The provisions of this bill will avert Federal sanctions for non-compliance that would reduce Federal funding for New York under the Interstate Maintenance Program, Surface Transportation Program, and National Highway System Program.

Part G – Extends and Conforms Vehicular Drug Penalty Standards to Federal Requirements.

This bill makes permanent provisions to suspend driver’s licenses for certain drug-related convictions and repeals the accompanying Division of Criminal Justice Services’ reporting requirement. Provisions of this bill conform State law to Federal standards, thereby averting sanctions which would reduce the State’s Federal highway aid.

This bill permanently extends Chapter 533 of the Laws of 1993, which requires the denial or loss of driving privileges for a period of 6 months upon an individual’s conviction or adjudication for any drug-related criminal offense defined in Article 220 or 221 of the Penal Law; any violation of section 1192(4) of the Vehicle and Traffic Law; any violation of the Federal Controlled Substances Act; or any out-of-state or Federal drug-related criminal offense. The license suspension provisions enacted through Chapter 533 are currently in effect and will expire October 1, 2001. One year extensions of these provisions have been enacted since 1994.

In addition, this bill repeals section 28 of Part E of Chapter 58 of the Laws of 1998, requiring the Division of Criminal Justice Services to prepare a report on implementation procedures.

Enactment of this bill is necessary to conform State penalties for certain drug-related criminal offenses with Federal law, and to avoid significant Federal highway aid sanctions which would result in the loss of funds supporting the State’s highway construction program.

The Statewide Anti-Drug Abuse Council identified loss of driving privileges as an important deterrent to the abuse of controlled substances. This deterrent is thought to be particularly strong for young offenders and casual drug users.

Additionally, the repeal of the reporting requirement imposed on the Division of Criminal Justice Services removes an unnecessary administrative burden, that has proven to be of limited utility in assessing the effectiveness of this law.

Part H – Establishes Intoxicated Driver Repeat Offender Provisions.

This bill strengthens penalties for those who repeatedly violate the State’s laws against driving while intoxicated or under the influence of drugs. These strengthened penalties conform to requirements set forth in the Federal Transportation Act and permit the State to avoid Federal sanctions which would reduce the State’s highway construction aid.

This bill amends section 1193 of the Vehicle and Traffic Law by adding a new provision requiring either imprisonment or mandatory community service for individuals who have been convicted more than once of driving while intoxicated or while their ability was impaired by drugs on more than one occasion. The bill requires alcohol and substance abuse evaluation and treatment assessment for all multiple offenders. In addition, the bill mandates the revocation of a repeat DWI offender’s vehicle registration(s) during any period of license revocation. However, as an alternative to registration revocation, the bill permits the sentencing court to order that each motor vehicle owned by the repeat offender be equipped with an ignition interlock device.

Vehicle and Traffic Law section 1193 (1); and (2) sets forth criminal penalties for violating the laws for operating a motor vehicle while intoxicated or under the influence of drugs or alcohol, including license sanctions and mandatory license revocations.

This bill is necessary to conform State penalties for repeat convictions of driving while intoxicated or while ability is impaired by drugs with Federal law, and to avoid significant Federal highway aid sanctions which would result in the loss of funds supporting the State’s highway construction program.

A similar bill was introduced in 2000 as a Governor’s Program Bill (S.8051) and was passed by the Senate.

Part I – Department of Motor Vehicles (DMV) Customized License Plates.

This bill authorizes the Department of Motor Vehicles (DMV) to revise the current special license plate series, add new plates, and modify the current fee structure for special plates. Further, to correct inequities under existing law, this bill establishes a one-time fee of $10 for plates provided for various military veterans.

This bill amends the State’s Vehicle and Traffic Law by granting DMV the authority to issue “distinctive design” license plates, in addition to special plates, at a one-time cost of $25 plus an annual charge of $12.50.

Under current law, special license plates are required to follow a basic design and color scheme that is consistent with non-custom license plates. Purchasers of special license plates currently pay $25 per year but no one-time fee. The statutes governing the various categories of military special plates are inconsistent with respect to the annual and one-time fees charged for such plates. Establishing a uniform one-time fee addresses statutory inequities that currently appear to favor some military groups over others.

Over the last several years, DMV’s custom plate revenues have exhibited little year-to-year growth. By reducing the annual fee by 50 percent, DMV anticipates additional purchases and continued renewals. Additionally, the creation of the “distinctive design” plate, which will promote the State’s scenic regions, is anticipated to enhance sales.

Part J – Authorization for CHIPS and Marchiselli Programs.

This bill provides the required annual authorization for the CHIPS and Marchiselli local capital highway assistance programs. This bill authorizes the CHIPS and Marchiselli programs for State Fiscal Year 2001-02 at $217.9 million and $39.7 million, respectively.

The current five year authorization levels were set in the 2000-01 Enacted Budget as part of the State’s new transportation plan. This bill does not alter the current law authorization levels for SFY 2001-02, but simply provides the annual authorization required by the State Highway Law for the CHIPS and Marchiselli programs, which historically have been enacted on an annual fiscal year basis.

Part K – Highway and Bridge Snow and Ice Removal.

This bill amends the authorized purposes of the Dedicated Highway and Bridge Trust Fund (the Dedicated Fund) to allow the shift of the Department of Transportation’s (DOT) snow and ice control, arterial maintenance, and bus inspection programs to the Dedicated Fund from the General Fund.

This bill amends paragraph a of subdivision 5 of section 89-b of the State Finance Law to include DOT’s snow and ice control, arterial maintenance, and bus inspection programs as allowable purposes of the Dedicated Fund.

The snow and ice control, arterial maintenance and bus inspection activities of DOT are currently funded by the General Fund. The statutory purposes of the Dedicated Fund are not clear regarding whether these programs are eligible for funding from the Dedicated Fund.

The move of these DOT programs from the General Fund to the Dedicated Fund will be accompanied by a move of General Fund revenues equivalent to the disbursements for these programs. These additional revenues pledged to the Dedicated Fund will improve the revenue to debt service coverage ratio of the Dedicated Highway and Bridge Trust Fund Bond Program, thereby allowing the State to continue to issue Dedicated Fund bonds to fund the transportation capital program in future years. A minimum revenue to debt service ratio of 2:1 is required as a test for authorizing the issuance of additional Dedicated Highway and Bridge Trust Fund Bonds.

BUDGET IMPLICATIONS:

Enactment of this bill is necessary to implement the 2001-02 Executive Budget.

Part A – Utility Assessments — New York State Energy Research and Development Authority (NYSERDA).

This bill is necessary because it authorizes expenditures of section 18-a moneys by NYSERDA. A $14.7 million appropriation is included in NYSERDA’s budget for these energy programs.

Part B – Federal Petroleum Overcharge.

The 2001-02 Executive Budget assumes $1.9 million in additional General Fund revenue through the exchange of POCR funds for NYPA corporate revenues.

Part C – Cornell Theory Center.

The 2001-02 Executive Budget assumes that the Dormitory Authority will provide up to $1.2 million to Cornell University for operation of the Cornell Theory Center.

Part D – and Part E. Community Enhancement Facilities Assistance Program; and High Technology Capital Program.

Enactment of these provisions is necessary because the 2001-02 Executive Budget assumes that a new $100 million high technology capital program will be financed with $60 million of redirected Community Enhancement Facilities Assistance Program (CEFAP) bonding authority and $40 million from the General Fund. The provisions also make technical changes to reflect the use of Debt Reduction Reserve Fund (DRRF) funds to finance a portion of the CEFAP program.

Part F – Conforms State Vehicular Blood Alcohol Standards to Federal Requirements.

Enactment of this bill is necessary to prevent a loss to New York of significant Federal aid highway funds as follows: $18 million in SFY 2004-05; $30 million in SFY 2005-06; and $42 million in SFY 2006-07. These funds are integral to the Department of Transportation’s capital program, and their loss would result in the elimination of many important capital projects.

Part G – Extends and Conforms Vehicular Drug Penalty Standards to Federal Requirements.

Enactment of this bill will prevent the State from experiencing a 10 percent annual loss of National Highway System (NHS) and Surface Transportation Program (STP) funds — totaling $45 million — beginning in SFY 2001-02. These funds are integral to the Department of Transportation’s capital program, and their loss would result in the elimination of many important capital projects.

Part H – Establishes Intoxicated Driver Repeat Offender Provisions.

Federal law provides that certain portions of the State’s Federal highway aid will be diverted to a separate Department of Motor Vehicles (DMV) fund to implement alcohol-impaired driving countermeasures or other safety measures in the event that the State does not, by October 1, 2000, enact a law conforming with the Federal requirements for repeat offenders. These funds are integral to the Department of Transportation’s capital program, and their loss would result in the elimination of many important capital projects.

Failure to enact such a law has resulted in the loss of approximately $3.9 million in SFY 2000-01. Continued failure will result in additional losses as follows: $9 million in SFY 2001-02; $14 million in SFY 2002-03 and $18 million annually in SFY 2003-04 and thereafter.

Part I – Department of Motor Vehicles (DMV) Customized License Plates.

This bill is necessary because the 2001-02 Financial Plan assumes $500,000 in additional revenue from the revisions to the non-military custom plate program.

Part J – Authorization for CHIPS and Marchiselli Programs.

State Highway Law requires annual authorization of both CHIPS and Marchiselli funding levels.

Part K – Highway and Bridge Snow and Ice Removal.

The shift of DOT’s snow and ice control, arterial maintenance and bus inspection programs from the General Fund to the Dedicated Fund is accompanied by shifting an equivalent amount of General Fund revenues. These additional pledged revenues to be deposited to the Dedicated Fund are needed to improve the revenue to debt service coverage ratio of the Dedicated Fund bond program, thereby allowing the State to continue to issue Dedicated Fund bonds to fund the transportation capital plan in future years.

EFFECTIVE DATE:

This bill takes effect April 1, 2001, except that:

Part F. Conforms State Vehicular Blood Alcohol Standards to Federal Requirements. This part takes effect on the first day of November next succeeding the date on which this bill shall become a law, provided that section 3, which applies to commercial vehicle operators, shall take effect immediately.

Part G. Extends and Conforms Vehicular Drug Penalty Standards to Federal Requirements. This part takes effect immediately.

Part H. Intoxicated Driver Repeat Offender provisions take effect on the thirtieth day of the September next succeeding the date on which it shall have become law.

Part I. Department of Motor Vehicles (DMV) Customized License Plates provisions take effect October 1, 2001.