2007-2008 NEW YORK STATE EXECUTIVE BUDGET
PUBLIC PROTECTION AND GENERAL GOVERNMENT
ARTICLE VII LEGISLATION
MEMORANDUM IN SUPPORT

CONTENTS

Table of Contents
PART DESCRIPTION STARTING PAGE NUMBER FOR:
SUMMARY, HISTORY & STATEMENT IN SUPPORT BUDGET IMPLICATIONS EFFECTIVE DATE
A Amend Civil Service Law to insert language that will allow the New York State Employee Health Insurance Plan the option to be self insured 9 (A) 19 (A) 23 (A)
B Expand the uses of funds deposited into the Criminal Justice Improvement Account 10 (B) 19 (B) 23 (B)
C Specify the manner and criteria by which local governments can receive certain criminal justice funding 10 (C) 20 (C) 23 (C)
D Authorize an increase in the Criminal History Search Fee to increase resources, primarily to the Legal Services Assistance Fund, to fund civil legal services 11 (D) 20 (D) 23 (D)
E Provide permanent authorization to deposit all receipts derived from the rental of State armories into the Armory Rental Account 11 (E) 20 (E) 23 (E)
F Require nuclear power plant owners to pay the costs of security provided by the New York National Guard 11 (F) 20 (F) 23 (F)
G Permanently extend various criminal justice programs 12 (G) 20 (G) 23 (G)
H Authorize the use of photo-monitoring equipment at work zones to enforce speed limits 12 (H) 20 (H) 23 (H)
I Increase salaries of judges and justices of the Unified Court System, retroactive to 2005-06 13 (I) 21 (I) 24 (I)
J Establish the Universal Broadband Assistance Account to facilitate expanding statewide access to broadband internet service 13 (J) 21 (J) 24 (J)
K Extend the Procurement Stewardship Act for one year 13 (K) 21 (K) 24 (K)
L Amend the parole violation process to reduce the demand on local jails to house parole violators awaiting hearings 14 (L) 21 (L) 24 (L)
M Create a commission to evaluate the State prison system and make recommendations regarding closure of specific correctional facilities 14 (M) 21 (M) 24 (M)
N Provide mandate relief for localities 15 (N) 22 (N) 24 (N)
O Restructure the Aid and Incentives for Municipalities (AIM) program to increase financial assistance targeted to distressed municipalities, strengthen emphasis on accountability and efficiency, and eliminate aid to municipalities with limited need for AIM funding 16 (O) 22 (O) 24 (O)
P Establish eligibility limitations for State aid to municipalities with VLT facilities 17 (P) 22 (P) 24 (P)
Q Authorize transfers, temporary loans and miscellaneous capital/debt provisions, including certain bond caps 17 (Q) 22 (Q) 24 (Q)

MEMORANDUM IN SUPPORT

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

AN ACT to amend the civil service law and the state finance law, in relation to allowing the New York state employee health insurance plan to have the option to be self insured; and to amend the parks, recreation and historic preservation law, in relation to the health benefit plan for employees (Part A); to amend the state finance law, in relation to broadening the allowable uses of funds deposited into the criminal justice improvement account (Part B); to specify the manner of distribution to local governments of certain criminal justice funding (Part C); to amend chapter 62 of the laws of 2003 amending the county law and other laws relating to assigned counsel and the state finance law, in relation to criminal history search fees, the legal services assistance fund, and the judiciary data processing offset fund (Part D); to amend chapter 152 of the laws of 2001 amending the military law relating to military funds of the organized militia, in relation to extending the effectiveness of such provisions (Part E); to amend the state finance law, in relation to establishing a power plant security account; and to amend the executive law, in relation to assessments on nuclear power plants to reimburse the state for costs of homeland security provided by the state militia (Part F); to amend chapter 887 of the laws of 1983, amending the correction law relating to the psychological testing of candidates, to amend chapter 428 of the laws of 1999, amending the executive law and the criminal procedure law relating to expanding the geographic area of employment of certain police officers, to amend chapter 886 of the laws of 1972, amending the correction law and the penal law relating to prisoner furloughs in certain cases and the crime of absconding therefrom, to amend chapter 261 of the laws of 1987, amending chapters 50, 53 and 54 of the laws of 1987, the correction law, the penal law and other chapters and laws relating to correctional facilities, to amend chapter 339 of the laws of 1972, amending the correction law and the penal law relating to inmate work release, furlough and leave, to amend chapter 60 of the laws of 1994 relating to certain provisions which impact upon expenditure of certain appropriations made by chapter 50 of the laws of 1994 enacting the state operations budget, to amend chapter 554 of the laws of 1986, amending the correction law and the penal law relating to providing for community treatment facilities and establishing the crime of absconding from the community treatment facility, to amend chapter 3 of the laws of 1995, amending the correction law and other laws relating to the incarceration fee, to amend chapter 55 of the laws of 1992, amending the tax law and other laws relating to taxes, surcharges, fees and funding, to amend chapter 907 of the laws of 1984, amending the correction law, the New York city criminal court act and the executive law relating to prison and jail housing and alternatives to detention and incarceration programs, to amend chapter 166 of the laws of 1991, amending the tax law and other laws relating to taxes, to amend chapter 713 of the laws of 1988, amending the vehicle and traffic law relating to the ignition interlock device program, to amend chapter 412 of the laws of 1999, amending the civil practice law and rules and the court of claims act relating to prisoner litigation reform, to amend chapter 222 of the laws of 1994 constituting the family protection and domestic violence intervention act of 1994, to amend chapter 505 of the laws of 1985, amending the criminal procedure law relating to the use of closed-circuit television and other protective measures for certain child witnesses, to amend chapter 62 of the laws of 2003 amending the insurance law and other laws relating to motor vehicle law enforcement fees, to amend chapter 56 of the laws of 2004, amending the insurance law and the state finance law relating to motor vehicle law enforcement fees, to amend the executive law, in relation to extending the applicability of the plan of operation and grant award process of the New York motor vehicle theft and insurance fraud prevention demonstration program and the expiration thereof, to amend chapter 57 of the laws of 2000 amending the state finance law relating to a report on automobile theft prevention activities of the state police, and chapter 688 of the laws of 2003, amending the executive law relating to enacting the interstate compact for adult offender supervision, to amend chapter 56 of the laws of 2000, amending the public health law, the general business law and the insurance law relating to the sale and possession of hypodermic syringes and needles, in relation to the effectiveness thereof, and to repeal subdivision (bbb) of section 427 of chapter 55 of the laws of 1992, amending the tax law generally and enacting the omnibus revenue act of 1992, relating thereto, to repeal subdivisions (q), (r) and (aa) of section 427 of chapter 55 of the laws of 1992, amending the tax law and other laws relating to taxes, surcharges, fees and funding, relating thereto, to repeal subdivision 8 of section 1809 of the vehicle and traffic law relating to mandatory surcharges and victim assistance fees, to repeal paragraph a of subdivision 6 of section 76 of chapter 435 of the laws of 1997, amending the military law and other laws relating to various provisions, relating thereto, and to repeal subdivision d of section 74 of chapter 3 of the laws of 1995, amending the penal law, the correction law, the criminal procedure law and the executive law, relating to providing for the sentencing of certain felony offenders, relating to providing for the sentencing of certain felony offenders, and to repeal section 259-m of the executive law relating to compacts with other states for out-of-state parolee supervision relating thereto (Part G); to amend the vehicle and traffic law, in relation to the denial of registration or renewal for certain violations; in relation to the suspension of registration for failure to answer or pay penalties with respect to certain violations; and in relation to establishing a photo-monitoring program to impose fines for failing to obey work zone speed limits (Part H); to amend the judiciary law and the New York city civil court act, in relation to compensation of certain state employees; and to repeal certain provisions of the judiciary law relating thereto (Part I); to amend the state finance law, in relation to establishing a universal broadband access account in the miscellaneous special revenue fund (Part J); to amend chapter 83 of the laws of 1995 amending the state finance law and other laws relating to bonds, notes and revenues, in relation to extending the expiration of provisions of the state finance law relating to purchasing services and commodities (Part K); to amend the executive law and the correction law, in relation to allowing parole violators to be incarcerated by the department of correctional services prior to revocation of parole (Part L); to create a temporary state commission on prison capacity, with regard to inmate population trends, and to identify and recommend ways by which the efficiency and bed utility could be improved, including recommendations for prison closures; and providing for the repeal of such provisions upon expiration thereof (Part M); to amend the executive law, in relation to public work contracts; to amend the general municipal law, the state finance law, the public housing law, the education law, the public authorities law, chapter 560 of the laws of 1980 authorizing the city of New York to adopt a solid waste management law, and chapter 892 of the laws of 1971 amending the public authorities law and other laws relating to enabling the dormitory authority to construct and finance dormitories, buildings and health facilities, in relation to separate specifications for public works contracts; to amend the civil practice law and rules, in relation to the impact of collateral source payments upon tort claims for personal injury, property damage or wrongful death, and upon related subrogation claims and in relation to equalizing the treatment of collateral sources in tort actions; to amend the general municipal law, the public housing law, the state finance law and chapter 585 of the laws of 1939 relating to the rate of interest to be paid by certain public corporations upon judgments and accrued claims, in relation to the rate of interest paid on judgments; to amend the general municipal law, in relation to local government procurement and public work contracts; to amend the multiple dwelling law and the multiple residence law, in relation to authorizing administrative imposition of civil penalties in the enforcement of state and local housing maintenance laws; to repeal subdivisions (a) and (b) of section 4545 of the civil practice law and rules relating to the admissibility of collateral source of payment; and to repeal subdivisions (d) and (e) of rule 4111 of the civil practice law and rules relating to itemized verdicts in certain actions against a public employer for personal injury and wrongful death (Part N); to amend the state finance law, in relation to aid and incentives for municipalities; and to repeal certain provisions of such law relating thereto (Part O); to amend the state finance law, in relation to a program of aid to municipalities with video lottery gaming facilities (Part P); and to provide for the administration of certain funds and accounts related to the 2007-2008 budget; authorizing certain payments and transfers; to amend the state finance law, in relation to the school tax relief fund; to amend the state finance law, in relation to limitations on the issuance of state-supported debt; to amend the state finance law, in relation to revenue bond financing; to amend the judiciary law, in relation to the New York state judicial institute and the issuance of bonds; to amend chapter 57 of the laws of 2004, amending the labor law, the general business law and other laws relating to implementing the state fiscal plan for the 2004-2005 state fiscal year, in relation to state-supported debt; to amend the education law, in relation to the public broadcasting facilities assistance program; to amend chapter 57 of the laws of 2005, amending the labor law and other laws relating to implementing the state fiscal plan for the 2005-2006 state fiscal year, in relation to state-supported debt; to amend the public authorities law, in relation to state-supported debt; to amend the education law and the public authorities law, in relation to state-supported debt of the children’s education and learning (EXCEL) program; to amend the public authorities law, in relation to notes and bonds of the New York state environmental facilities corporation; to amend chapter 83 of the laws of 1995, amending the state finance law and other laws relating to authorizing the New York state urban development corporation to issue bonds or notes, in relation to the issuance of bonds and notes; to amend chapter 7 of the laws of 1989, authorizing the New York state urban development corporation to assist the state in restructuring certain payment requirements relating to notes and bonds, in relation to state-supported debt; to amend chapter 190 of the laws of 1990, amending the business corporation law and other laws relating to the issuance of bonds, notes or other obligations by the urban development corporation, in relation to the issuance of bonds or notes; to amend chapter 61 of the laws of 2005, amending the public authorities law relating to state environmental infrastructure projects, in relation to the issuance of bonds or notes; to amend chapter 81 of the laws of 2002, amending the education law and other laws relating to providing for the administration of certain funds and accounts related to the 2002-2003 budget and authorizing certain payments and transfers, in relation to the issuance of bonds or notes for the Alfred E. Smith office building and the Elk Street parking garage building located in the city of Albany; to amend the public buildings law, in relation to the lease of certain buildings, rooms or premises in the county of Albany; to amend the state finance law, in relation to the issuance of certificates of participation; to amend chapter 60 of the laws of 2006, relating to providing for administration of certain funds and accounts related to the 2006-2007 budget, in relation to the issuance of bonds or notes; to amend the private housing finance law, in relation to housing program bonds and notes; to amend chapter 432 of the laws of 1997, amending the state finance law and other laws relating to the issuance of bonds or notes for community enhancement facilities projects, in relation to the issuance of bonds or notes; to amend chapter 796 of the laws of 1992 providing for enhancements to the center for science and technology on the campus of Syracuse University in the city of Syracuse and the Cornell super computer center on the campus of Syracuse University in the city of Ithaca relating to the sale of bonds and notes of the New York state urban development corporation, in relation to state-supported debt; to amend chapter 684 of the laws of 1986 relating to providing for the construction of the center for computers, microelectronics and telecommunications on the campus of Columbia University in the city of New York, in relation to state-supported debt; to amend the New York state urban development corporation act, in relation to state-supported debt; to amend chapter 839 of the laws of 1987, constituting the omnibus economic development act of 1987, in relation to state-supported debt; to amend chapter 258 of the laws of 1993 relating to the development of sports facilities, in relation to state-supported debt; to amend part F of chapter 405 of the laws of 1999 relating to the issuance of bonds or notes by the urban development corporation, in relation to state-supported debt; to amend the public authorities law, in relation to state-supported debt; to amend part H of chapter 61 of the laws of 2000 authorizing bonds for the strategic investment program, in relation to state-supported debt; to amend part T of chapter 84 of the laws of 2002 authorizing the New York state urban development corporation and the dormitory authority of the state of New York to issue bonds or notes for the purpose of financing certain project costs, in relation to state-supported debt; to amend chapter 3 of the laws of 2004 authorizing the New York state urban development corporation and the dormitory authority of the state of New York to issue bonds or notes, in relation to state-supported debt; to amend part X of chapter 59 of the laws of 2004 authorizing the New York state urban development corporation and the dormitory authority of the state of New York to issue bonds or notes, in relation to state-supported debt; to amend part T of chapter 59 of the laws of 2005 relating to the urban development corporation bonding authority, in relation to state-supported debt; to amend part S of chapter 59 of the laws of 2005 relating to the authority of the urban development corporation and the dormitory authority to issue bonds, in relation to state-supported debt; to amend part L1 of chapter 62 of the laws of 2003 authorizing the urban development corporation to issue bonds, in relation to state-supported debt; to amend part K of chapter 81 of the laws of 2002 relating to providing for the administration of certain funds and accounts related to the 2002-2003 budget and authorizing the urban development corporation to issue bonds or notes, in relation to state-supported debt; to amend part X of chapter 58 of the laws of 2006 authorizing the New York state urban development corporation or the dormitory authority to issue bonds or notes, in relation to state-supported debt; to amend chapter 35 of the laws of 1979 relating to appropriating funds to the New York state urban development corporation, in relation to state-supported debt; to amend chapter 161 of the laws of 2005 amending the education law relating to the New York state licensed social worker loan forgiveness program and authorizing the urban development corporation to issue bonds or notes, in relation to state-supported debt; to amend the New York state medical care facilities finance agency act, in relation to state-supported debt; to amend part D of chapter 389 of the laws of 1997 relating to the financing of the correctional facilities improvement fund and the youth facility improvement fund, in relation to state-supported debt; to amend chapter 432 of the laws of 1997 amending the state finance law relating to the environmental protection fund and the restoration and reversion of certain balances and authorizing the dormitory authority to issue bonds or notes, in relation to state-supported debt; to amend chapter 329 of the laws of 1991 amending the state finance law and other laws relating to the establishment of the dedicated highway and bridge trust fund, in relation to state-supported debt; to amend chapter 109 of the laws of 2006 relating to dormitory authority bonds, and authorizing the thruway authority to issue bonds and notes, in relation to state-supported debt; and to amend part O of chapter 61 of the laws of 2000 amending the public authorities law relating to the metropolitan transportation authority, the New York city transit authority, and the Triborough bridge and tunnel authority, in relation to state-supported debt; and providing for the repeal of certain provisions upon expiration thereof (Part Q)

PURPOSE:

This bill contains provisions needed to implement the Public Protection and General Government portions of the 2007-08 Executive Budget.

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

Part A – Amend Civil Service Law to insert language that will allow the New York State Employee Health Insurance Plan the option to be self insured

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

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

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

Part B – Expand the uses of funds deposited into the Criminal Justice Improvement Account

This bill expands the allowable uses of funds deposited into the Criminal Justice Improvement Account.

This bill amends section 97-bb of State Finance Law to allow funds deposited into the Criminal Justice Improvement Account (CJIA) to be used for various criminal justice local assistance programs.  Currently, funds in the CJIA are used exclusively to fund crime victims programs administered by the Crime Victims Board.  The CJIA will fund a variety of programs that aim to reduce violent crime; limit offender recidivism; and promote cooperation and interaction among all levels of law enforcement across the State, while continuing to fund all crime victims programs fully.  By broadening the allowable uses of these funds, the State can provide more resources to law enforcement to combat the incidence of crime and thereby reduce the number of residents who become victims of crime.

Part C – Specify the manner and criteria by which local governments can receive certain criminal justice funding

This bill specifies the manner of distribution to local governments of certain criminal justice funding.

Funds appropriated to the Division of Criminal Justice Services for aid to localities for prosecutorial and defense services will be distributed to counties at the same level received in 2006-07, with any additional funding to be distributed according to the proportion of violent crime reported for 2005.

Funding for participants in the Crimes Against Revenue Program will be distributed proportionally according to a formula to be developed by the Division of Criminal Justice Services that is based upon population and personal income tax revenue.

Funds appropriated to the Division of Probation and Correctional Alternatives for aid to localities for the intensive supervision of sex offenders will be distributed proportionally based upon the number of registered sex offenders under supervision.

Part D – Authorize an increase in the Criminal History Search Fee to increase resources, primarily to the Legal Services Assistance Fund, to fund civil legal services

This bill increases the criminal history search fee charged by the Office of Court Administration (OCA) to provide additional funding for civil legal services and to adjust the language supporting the transfer of funds to the Judiciary Data Processing Offset Account.

This bill, which supports the Judiciary Budget, amends Part J of Chapter 62 of the Laws of 2003 to increase the OCA criminal history search fee from $52 to $60. The bill increases the portion of the fee deposited into the Legal Services Assistance Account by $6 and directs the remaining $2 increase to the Judiciary Data Processing Offset Account.

Part E – Provide permanent authorization to deposit all receipts derived from the rental of State armories into the Armory Rental Account

This bill makes permanent the authorization to deposit all receipts derived from the rental of State armories into the Armory Rental Account.

Section 183, subdivision five of the Military Law requires that half of armory rental revenues be apportioned among all units of the State’s organized militia. In order to enable State armories annually to offset utility and other non-personal service operating costs, a statute requiring the deposit of all armory rental revenue receipts into a specific special revenue account was first enacted in 1996. This provision has subsequently been extended five times, most recently by section 1 of Part A of Chapter 56 of the Laws of 2005. The armory rental revenues are used to provide General Fund relief for the costs of operating armories. This provision expires on July 31, 2007.

Without this bill, half of the revenues collected from the rental of the State armories would not be available to offset the costs of running these facilities, and additional General Fund support would be required.

Part F – Require nuclear power plant owners to pay the costs of security provided by the New York National Guard

This bill amends the Executive Law by adding a new section 29-f to create an assessment on operators of nuclear electric generating facilities to reimburse the State for the costs of deploying the organized militia (primarily the New York National Guard) to provide security at such facilities. The bill also amends the State Finance Law by adding a new section 99-r to create an account to manage payment of such expenses and receipt of reimbursements from the assessments.

The bill creates a new assessment on operators of nuclear electric generating facilities to cover the costs to the State of providing security services at such facilities. The assessment for each facility is calculated based on the costs to the State to provide security to the individual facility. The assessment will be paid quarterly.

Since the terrorist attacks of September 11, 2001, the organized militia, primarily the New York National Guard, has been deployed to protect vital and/or vulnerable infrastructure, including nuclear power plants. The militia has remained on State Active Duty at nuclear power plants since that time, and has become an integral part of the security staff at these facilities at an annual cost to the State of $13 million. The bill will ensure that the cost of providing these services are borne by the operators of the facilities.

Part G – Permanently extend various criminal justice programs

This bill permanently extends various criminal justice programs and fees that would otherwise expire in 2007 and/or 2009.

This bill makes permanent various sections of law to ensure criminal justice program continuity. In prior years, these myriad laws have had sunset clauses requiring repeated efforts to extend the authorization of these essential programs and for sources of anticipated revenues.

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

This bill also makes permanent certain criminal justice fees and other revenue sources. These include: payment of fees related to sex offender and DNA databank registration; parole supervision fees; probation fees; fines related to traffic and parking violations; inmate court filing fees; and the motor vehicle law enforcement fee.

Part H – Authorize the use of photo-monitoring equipment at work zones to enforce speed limits

This bill establishes a program for photo-monitoring enforcement of speeding in work zones and authorizes the Department of Motor Vehicles to deny renewal and/or suspend the registration of owners who fail to respond to a Notice of Violation for speeding within a work zone or who refuse to pay the fine.

This bill authorizes the Division of State Police to implement a program utilizing remote control photo-monitoring equipment for the purpose of imposing a monetary penalty on the registered owners of vehicles that have been documented exceeding the posted speed in work zones. Signs alerting motorists to the presence of photo-monitoring devices will be posted approximately 300 yards before the work zone. A $50 monetary penalty will be imposed upon the registered owner of the vehicle found to be in violation. Registered owners found liable for violations of the provisions of this bill will not be deemed convicted as an operator, be assessed points against their driver’s license, or be subject to increased automobile insurance premiums. Adjudication of contested violations shall be accomplished by a process established by the Division of Criminal Justice Services.

Part I – Increase salaries of judges and justices of the Unified Court System, retroactive to 2005-06

This bill increases the salaries of judges and justices of the Unified Court System retroactive to 2005-06.

This bill repeals and replaces various sections of the Judiciary Law with a new section 221, which would increase judicial salaries retroactive to April 1, 2005. Judicial salaries have not been increased since 1999, and as a result, this bill would grant increases of approximately 22 percent.

Part J – Establish the Universal Broadband Assistance Account to facilitate expanding statewide access to broadband internet service

This bill establishes the new Universal Broadband Assistance Account, within the Special Revenue Fund, to support efforts to provide affordable, broadband internet access statewide.

The bill amends State Finance Law to create the Universal Broadband Assistance Account to facilitate increased availability of affordable, broadband internet access in New York State. The bill also authorizes the transfer of up to $50 million from the Statewide Public Safety Communications Account to the Universal Broadband Assistance Account.

Part K – Extend the Procurement Stewardship Act for one year

This bill extends for one year the 1995 Procurement Stewardship Act which governs the State’s purchase of commodities and services.

The 1995 Procurement Stewardship Act established the technical and procedural requirements governing the purchase of commodities and services and mandated an open and competitive procurement process. The heart of the Act, section 163 of State Finance Law, offers a fiscally responsible and cohesive strategy focused on best practices in purchasing and the awarding of commodity contracts based on the lowest price. The Procurement Stewardship Act was originally set to expire in 2000, but has since been extended three times, and will currently expire on June 30, 2007. This bill extends these provisions until June 30, 2008.

Part L – Amend the parole violation process to reduce the demand on local jails to house parole violators awaiting hearings

This bill changes the parole violation process. Included is a provision that will allow the Department of Correctional Services to incarcerate alleged parole violators pending their revocation hearings. The offender will then participate via video teleconferencing in the revocation hearing that will be held at the local correctional facility.

This bill amends the Correction Law to authorize the Commissioner of the Department of Correctional Services (DOCS) to enter into agreements with localities to incarcerate certain alleged parole violators whose cases have not yet been decided at a final revocation hearing. Currently, these alleged parole violators are housed in local jails pending revocation hearings. Existing Correction Law allows an alleged parole violator to demand the hearing in the county in which an arrest is made. This results in an additional cost burden on localities. To reduce this cost burden while ensuring that an alleged parole violator’s rights are not violated, DOCS has agreed to house alleged parole violators pending a revocation hearing, provided that the county where the arrest is made has video teleconferencing capabilities. Further, the process for violators taken into custody outside of New York State will be improved by extending the notice period of a preliminary hearing from five to ten days.

To further improve the parole violation process, the Board of Parole will be considering amendments to its rules and regulations that will give Administrative Law Judges more flexibility in dealing with parole violators, including reducing some time assessments for certain parole violators, based on a recommendation submitted by a supervising parole officer.

Part M – Create a commission to evaluate the State prison system and make recommendations regarding closure of specific correctional facilities

This bill establishes a commission to review existing capacity in the State prison system to identify and recommend facilities for closure.

This bill will establish a commission to evaluate prison capacity in relation to inmate population trends, and to recommend a specific facility or facilities for closure. The commission will issue a report of its findings on or before November 1, 2007, and a second report on or before November 1, 2008.

The need for a commission is compelled by the dramatic reduction in the inmate population over the last seven years, from a high of 71,500 in December 1999 to an estimated 63,400 on March 31, 2007. The number of correctional facilities in operation has not been reduced during this period. This commission will review the system to identify the extent and nature of the excess prison capacity in order to make recommendations for closure that will improve the efficiency of the State correctional system.

The commission will develop criteria by which to evaluate prison facilities for potential closure through a transparent process which will provide ample opportunity for input from stakeholders. Local communities, unions, and other related State agencies will be consulted as the commission develops and executes its recommendations. On or before November 1 of each year, the commission will present a detailed report of its recommendations to be reviewed by the Governor and both houses of the Legislature.

The recommendations made by the commission must be implemented unless: (1) they are rejected by the Governor; or (2) if approved by the Governor, the Legislature rejects the commission’s recommendations in their entirety, by a majority vote in both houses within thirty days of receiving the approval message from the Governor. The Commissioner of Correctional Services will implement the recommendations of the commission, while also complying with the one-year closure notification process set forth in the Correction Law.

Part N – Provide mandate relief for localities

This bill amends long-standing State imposed mandates on government operations and expands certain options to ensure the continued fiscal stability of New York’s local governments through increased savings and flexibility.

Sections 1 through 15 amend multiple bidding requirements (the Wicks Law) for the State, municipalities, school districts and public authorities by increasing the current thresholds for multiple bidding from fifty thousand dollars to one million dollars for upstate municipalities and to two million dollars for New York City. This reform also provides for annual inflation adjustments to these new contracting thresholds to address increases in labor costs and materials over time.

Sections 16 through 25 provide greater parity to the process under which legal claims against a public entity are resolved. Sections 16 through 21 amend the collateral source offset rules for damage awards in personal injury and wrongful death actions to:

Sections 22 through 24 ease the current mandatory interest rates that government defendants must pay on court judgments and accrued claims by establishing a market-based method of calculating interest rates similar to the method used for judgments involving the federal government.

Sections 26 through 28 increase the competitive bidding thresholds for commodities and public works projects and expand procurement options by allowing local governments to consider the “best value” versus the lowest bid and to purchase information technology products and services through cooperative purchasing under certain federal contracts.

Sections 29 through 31 allow localities to establish administrative proceedings for the enforcement of local housing maintenance codes as an alternative to enforcement of such codes through court actions.

Part O – Restructure the Aid and Incentives for Municipalities (AIM) program to increase financial assistance targeted to distressed municipalities, strengthen emphasis on accountability and efficiency, and eliminate aid to municipalities with limited need for AIM funding

This bill restructures the Aid and Incentives for Municipalities (AIM) Program to significantly increase aid to distressed municipalities, strengthen emphasis on accountability and efficiency, and eliminate aid for municipalities with limited need for AIM funding.

This bill repeals Sections 54 and 54-c of the State Finance Law, replacing revenue sharing and other municipal aid programs that existed in prior years with a new Aid and Incentives for Municipalities (AIM) Program. The new program restructures State municipal aid policy as follows:

Part P – Establish eligibility limitations for State aid to municipalities with VLT facilities

This bill establishes eligibility limitations for State aid to municipalities in which a video lottery gaming facility is located.

This bill amends Section 54-l of State Finance Law to limit eligibility for General Fund aid to municipalities in which a video lottery gaming facility is located. The City of New York will be excluded from eligibility effective in the 2007-08 State fiscal year. Beginning in State fiscal year 2008-09, this aid will be provided only to high need municipalities, as measured by poverty rates. Under this criterion, the Village of Monticello, the Town of Thompson, Sullivan County and the City of Yonkers will qualify for the aid.

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

This bill provides the statutory authorization necessary for the administration of funds/accounts included in the 2007-08 Executive Budget and proposes certain debt issuance modifications. Specifically, it (1) authorizes temporary loans, the deposit of certain revenues to specific funds/accounts, and transfers of money between funds/ accounts, (2) continues or extends various provisions of Chapter 59 of the Laws of 2004 in relation to capital projects and certain certifications, (3) authorizes bonds to be issued for equipment acquisition, (4) increases existing bond caps for various capital programs, permits greater flexibility in the issuance of State-supported debt through consolidated refundings, (5) increases the maximum amount of variable rate debt and interest exchange agreements authorized for the State, and (6) consolidates all current and proposed bond authorizations for greater transparency.

Section 1 authorizes specific State funds and accounts to receive temporary loans during the 2007-08 fiscal year.

Section 2 authorizes specific Federal funds to receive temporary loans during the 2007-08 fiscal year.

Sections 3 through 11 authorize transfers between designated funds and accounts.

Section 12 authorizes the State Comptroller to deposit funds to the banking services account.

Section 13 authorizes reimbursement to the General Fund from the Correctional Facilities Capital Improvement Fund for costs related to capital projects.

Section 14 amends State Finance Law to permanently authorize the deposit of funds into the School Tax Relief Fund.

Section 15 – Intentionally omitted.

Section 16 authorizes appropriations for various Capital Projects Funds that are in accordance with section 93 of State Finance Law and requires certification of certain capital spending by the State Comptroller and designated State authorities and agencies.

Sections 17 through 25 authorize the State Comptroller to deposit reimbursements for certain capital spending, from new capital appropriations contained in various chapters of the laws of 1999 through 2007, into the Capital Projects Fund.

Section 26 continues the authorization to use excess debt service appropriation for Mental Hygiene facilities to make rebates necessary to protect the tax-exempt status of the bonds.

Section 27 continues authorizations for disbursements for hazardous waste site remediation projects.

Section 28 authorizes improvements to real property in accordance with section 66-e of the State Finance Law.

Section 29 amends section 1689-I of the public authorities law by deleting the end date of the period when the Director of the Budget is authorized to enter service contracts for library construction projects.

Section 30 prohibits the issuance of debt secured solely by State local aid payments.

Section 31 provides additional flexibility for PIT bond issuers to issue bonds for any other PIT bond issuers’ purposes.

Section 32 holds the Revenue Bond Tax Fund harmless to enhancements to STAR or other purposes.

Section 33 makes permanent provisions of section 69-c of the State Finance Law relating to the treatment of refundings with variable rates or swaps.

Section 34 increases the maximum amount of variable rate debt authorized for the State from 15 percent to 20 percent of State-supported debt outstanding.

Section 35 increases the maximum amount of interest rate exchange agreements authorized for the State from 15 percent to 20 percent of State-supported debt outstanding.

Sections 36 consolidates all current and proposed State-supported bond authorizations into a single statute to allow for greater transparency, and consistency of treatment for bond caps and refunding provisions. Sections 37-115 sunset all previous State-supported bonding authorizations, which are replaced by the provisions of section 36 as of April 1, 2007.

Section 116 makes this bill effective as of April 1, 2007.

This bill is necessary to execute a balanced Financial Plan in accordance with the 2007-08 Executive Budget. Such legislation is enacted annually to authorize the transfer of funds budgeted in the financial plan but that do not have permanent statutory authorization, as well as to provide for other transactions necessary to maintain a balanced financial plan.

In addition, State Finance Law requires statutory authorization for funds/accounts to receive temporary loans from the State Treasury. Similar provisions were enacted to implement the 2006-07 Budget and need to be extended to implement the 2007-08 Budget.

BUDGET IMPLICATIONS:

Part A – Amend Civil Service Law to insert language that will allow the New York State Employee Health Insurance Plan the option to be self insured

Enactment of this bill is necessary to implement the 2007-08 Executive Budget. This bill would afford the State more flexibility to enter into contracts for employee health benefits that are in the financial interests of the State and local governments which participate in the Empire Plan.

Part B – Expand the uses of funds deposited into the Criminal Justice Improvement Account

Enactment of this bill is necessary to implement the 2007-08 Executive Budget in order to fund ongoing and new criminal justice and victims services programs, while reducing the need for General Fund support by $17.5 million in 2007-08 and $17.5 million in 2008-09.

Part C – Specify the manner and criteria by which local governments can receive certain criminal justice funding

Enactment of this bill is necessary to implement the 2007-08 Executive Budget which assumes that these provisions will apply to certain enacted appropriations.

Part D – Authorize an increase in the Criminal History Search Fee to increase resources, primarily to the Legal Services Assistance Fund, to fund civil legal services

This bill results in approximately $6.6 million in revenue in 2007-08, annualized to $8 million in 2008-09, to fund civil legal services programs and to support the Judiciary’s data processing initiatives.

Part E – Provide permanent authorization to deposit all receipts derived from the rental of State armories into the Armory Rental Account

Enactment of this bill is necessary to implement the 2007-08 Executive Budget which includes the payment of over $1 million in armory operating costs from the revenues deposited into the Armory Rental Account.

Part F – Require nuclear power plant owners to pay the costs of security provided by the New York National Guard

The 2007-08 Executive Budget assumes that assessment payments from nuclear power plant operators will reimburse the State for its annual security costs related to these facilities. These costs have in the past been funded via Homeland Security General Fund appropriations.

Part G – Permanently extend various criminal justice programs

Enactment of this bill is necessary to implement the 2007-08 Executive Budget because it ensures that certain fees remain in force, essential to funding various programs. The bill also authorizes the continuation of various criminal justice programs.

Part H – Authorize the use of photo-monitoring equipment at work zones to enforce speed limits

Enactment of this bill is necessary to implement the 2007-08 Executive Budget because it improves public safety while generating approximately $9 million in net revenue in 2007-08, and $18 million when fully annualized. A portion of the revenue will support the cost of 50 State troopers to be deployed to enforce speed limits in highway work zones.

Part I – Increase salaries of judges and justices of the Unified Court System, retroactive to 2005-06

This bill is supported by reappropriations and new appropriations in the 2007-08 Judiciary Budget.

Part J – Establish the Universal Broadband Assistance Account to facilitate expanding statewide access to broadband internet service

Enactment of this bill is necessary to fund efforts to provide affordable, universal broadband access statewide as part of the 2007-08 Executive Budget.

Part K – Extend the Procurement Stewardship Act for one year

Enactment of this bill is necessary to implement the 2007-08 Executive Budget which assumes that these provisions will be in full force and effect for all of 2007-08. The Procurement Stewardship Act has produced significant savings for State agencies, local governments and school districts with an annual estimated cost avoidance of $800 million.

Part L – Amend the parole violation process to reduce the demand on local jails to house parole violators awaiting hearings

Enactment of this bill is necessary to implement the 2007-08 Executive Budget because it will generate $12 million in General Fund local assistance savings as a result of lower reimbursement payments to counties housing parole violators due to a reduction in time the violator is incarcerated in a local jail. Funding is added to the Division of Parole’s budget to enhance its ability to implement this new process.

This bill will also result in savings for local governments who are under pressure to build additional jail capacity. The New York State Association of Counties has stated that there are currently 19 counties that have been mandated by the State Commission on Correction to add capacity at a capital construction cost of approximately $1 billion. Implementation of this change in process will reduce the time parole violators spend in local jails. Because parole violators are a part of the local jail population, this reduction will relieve pressure on certain localities where available prison capacity is scarce or non-existent.

Part M – Create a commission to evaluate the State prison system and make recommendations regarding closure of specific correctional facilities

Enactment of this bill is necessary to implement the 2007-08 Executive Budget, which contains out-year projections reliant on anticipated savings resulting from prison closures.

Part N – Provide mandate relief for localities

Enactment of this bill is necessary to implement the 2007-08 Executive Budget because it will provide fiscal relief and increased flexibility for local governments by promoting structural reforms and reducing operational costs. The Wicks Law reforms will save the State an estimated $1.6 million, and will save New York City nearly $10 million in debt service costs by the close of its 2008 fiscal year. School districts throughout the State should also realize future savings in debt service costs as a result of this action. New York City will also save $11 million annually from the collateral source change and $3 million annually from the interest rate change on judgments.

Part O – Restructure the Aid and Incentives for Municipalities (AIM) program to increase financial assistance targeted to distressed municipalities, strengthen emphasis on accountability and efficiency, and eliminate aid to municipalities with limited need for AIM funding

Enactment of this bill is necessary to implement the 2007-08 Executive Budget because it authorizes $200 million in additional aid over four years targeted to distressed municipalities, including an increase of $50 million in the 2007-08 State fiscal year. The bill also continues a $25 million incentive program to encourage local government consolidation and shared services, and it eliminates $330 million in aid to New York City and other municipalities with low reliance on AIM funding.

Part P – Establish eligibility limitations for State aid to municipalities with VLT facilities

Enactment of this bill is necessary to implement the 2007-08 Executive Budget because it targets State aid to high need municipalities in which video lottery gaming facilities are located, saving $20 million in 2007-08 and $31 million annually beginning in the 2008-09 State fiscal year.

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

Enactment of this bill is necessary to implement the 2007-08 Executive Budget. Such legislation is enacted annually to authorize the transfer of funds budgeted in the financial plan but that do not have permanent statutory authorization, as well as to provide for other transactions, including temporary loans from the State Treasury for cash flow purposes, necessary to maintain a balanced Financial Plan. This bill is also necessary to reimburse projected Capital Projects Funds spending with the proceeds of bonds sold by public authorities, to maximize debt service savings from State-supported refundings, to ensure the continued tax-exempt status and reduced borrowing costs for certain State-supported debt, and to permit the State to carry out basic administrative functions.

EFFECTIVE DATE:

Part A – Amend Civil Service Law to insert language that will allow the New York State Employee Health Insurance Plan the option to be self insured

This bill takes effect immediately.

Part B – Expand the uses of funds deposited into the Criminal Justice Improvement Account

This bill takes effect April 1, 2007.

Part C – Specify the manner and criteria by which local governments can receive certain criminal justice funding

This bill takes effect April 1, 2007.

Part D – Authorize an increase in the Criminal History Search Fee to increase resources, primarily to the Legal Services Assistance Fund, to fund civil legal services

This bill takes effect immediately.

Part E – Provide permanent authorization to deposit all receipts derived from the rental of State armories into the Armory Rental Account

This bill takes effect April 1, 2007.

Part F – Require nuclear power plant owners to pay the costs of security provided by the New York National Guard

This bill takes effect immediately.

Part G – Permanently extend various criminal justice programs

The bill takes effect March 31, 2007.

Part H – Authorize the use of photo-monitoring equipment at work zones to enforce speed limits

This bill takes effect immediately.

Part I – Increase salaries of judges and justices of the Unified Court System, retroactive to 2005-06

This bill takes effect immediately.

Part J – Establish the Universal Broadband Assistance Account to facilitate expanding statewide access to broadband internet service

This bill takes effect April 1, 2007.

Part K – Extend the Procurement Stewardship Act for one year

This bill takes effect April 1, 2007.

Part L – Amend the parole violation process to reduce the demand on local jails to house parole violators awaiting hearings

This bill takes effect April 1, 2007.

Part M – Create a commission to evaluate the State prison system and make recommendations regarding closure of specific correctional facilities

This bill takes effect April 1, 2007.

Part N – Provide mandate relief for localities

This bill takes effect immediately.

Part O – Restructure the Aid and Incentives for Municipalities (AIM) program to increase financial assistance targeted to distressed municipalities, strengthen emphasis on accountability and efficiency, and eliminate aid to municipalities with limited need for AIM funding

This bill takes effect April 1, 2007.

Part P – Establish eligibility limitations for State aid to municipalities with VLT facilities

This bill takes effect April 1, 2007.

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

This bill takes effect April 1, 2007.