2007-2008 NEW YORK STATE EXECUTIVE BUDGET
TRANSPORTATION, ECONOMIC DEVELOPMENT
AND ENVIRONMENTAL CONSERVATION
ARTICLE VII LEGISLATION
MEMORANDUM IN SUPPORT

CONTENTS

MEMORANDUM IN SUPPORT

A BUDGET BILL submitted by the Governor in

Accordance with Article VII of the Constitution

AN ACT to authorize funding for the Consolidated Local Street and Highway Improvement Program (CHIPS) and Marchiselli programs for state fiscal year 2007-08; and to amend chapter 329 of the laws of 1991 amending the state finance law and other laws relating to establishing the dedicated highway and bridge trust fund and the dedicated mass transportation trust fund, in relation to the authorization of the state’s five-year transportation plan (Part A); to amend chapter 279 of the laws of 1998, amending the transportation law relating to enabling the commissioner of transportation to establish a single audit pilot program, in relation to the effectiveness thereof (Part B); to amend chapter 312 of the laws of 1994, amending the vehicle and traffic law relating to suspensions of licenses pending prosecution of certain alcohol-related charges, and authorizations for probationary and conditional driver’s licenses, in relation to the effectiveness thereof (Part C); to amend the eminent domain procedure law, in relation to allowing the suspension of interest when service upon a condemnee is completed by certified mail (Part D); to amend the transportation law, in relation to permitting the collection of motor carrier fees through the unified carrier registration plan and to delete obsolete references to the interstate commerce commission (Part E); to amend part I of chapter 413 of the laws of 1999 relating to the payment of mass transportation operating assistance, in relation to establishing industry-wide performance measures and to study the applicability of using performance based measures as an option for distributing state operating assistance and to require public transportation systems to report financial information to the commissioner of transportation on a multi-year basis (Part F); to establish a procurement council for the purpose of identifying opportunities to achieve savings through the expanded use of aggregate purchases and require the commissioner of transportation to report findings to the governor, legislature and the director of the budget (Part G); to provide for the utilization of utility assessment funds (Part H); to provide for the transfer of moneys from the New York state energy research and development authority (Part I); to amend chapter 393 of the laws of 1994, amending the New York state urban development corporation act, in relation to the effectiveness thereof (Part J); to amend the New York state urban development corporation act, in relation to establishing the investment and job creation program to attract and retain business in the state of New York (Part K); to amend the public authorities law and the public officers law, in relation to the creation of the New York state stem cell and innovation fund corporation (Part L); to provide for the utilization of utility assessment funds (Part M); to amend the environmental conservation law, in relation to the hazardous wastewater surcharge (Part N); to amend the state finance law, in relation to general fund transfers to the environmental protection fund (Part O); to amend the environmental conservation law, the economic development law and the state finance law, in relation to returnable beverage containers; and to repeal sections 27-1005, 27-1007 and subdivision 2 of section 27-1011 of the environmental conservation law relating thereto (Part P); to amend the environmental conservation law, in relation to operating permit program fees (Part Q); to amend the environmental conservation law, in relation to well driller registration fees, state pollutant discharge elimination system program fees, and dam fees (Part R); to amend the emergency tenant protection act of nineteen seventy-four, in relation to the obligation of the city of New York to fund the administration of rent regulations (Part S); to amend the vehicle and traffic law, in relation to the mailing of suspension and revocation orders (Part T); to amend chapter 569 of the laws of 1981, amending the vehicle and traffic law relating to motor vehicle liability insurance, financial security, criminal acts and penalties for non-compliance, in relation to making certain provisions permanent; to amend chapter 781 of the laws of 1983, amending the vehicle and traffic law and other laws relating to motor vehicle liability insurance, financial security, criminal acts and certain penalties for non-compliance, in relation to making certain provisions permanent; and to repeal sections 10 and 11 of chapter 781 of the laws of 1983, amending the vehicle and traffic law and other laws relating to motor vehicle liability insurance, financial security, criminal acts and certain penalties for non-compliance, in relation to the repeal of certain provisions (Part U); to amend the vehicle and traffic law and the transportation law, in relation to the disqualifications of commercial driver’s license holders (Part V); to repeal subdivision 19 of section 246 of chapter 81 of the laws of 1995 amending the public health law and other laws relating to suspension of drivers’ licenses of persons who are delinquent in the payment of child support, in relation to the repeal of certain provisions relating thereto (Part W); to amend the state finance law and the general business law, in relation to the deposit of revenues into the general fund, and to repeal certain provisions of the state finance law relating thereto (Part X); to amend chapter 21 of the laws of 2003, amending the executive law, relating to permitting the secretary of state to provide special handling for all documents filed or issued by the division of corporations and to permit additional levels of such expedited service, in relation to the effectiveness thereof (Part Y); to amend the executive law, in relation to the community services block grant program (Part Z); to amend the state finance law, in relation to reporting and appropriation requirements for the dedicated highway and bridge trust fund (Part AA); and to amend chapter 533 of the laws of 1993, amending the vehicle and traffic law and the correction law relating to suspension and revocation of driver’s licenses upon conviction of certain drug-related offenses, in relation to the effectiveness thereof (Part BB)

PURPOSE:

This bill contains provisions needed to implement the Transportation, Economic Development and Environmental Conservation portions of the 2007-08 Executive Budget.

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

Part A – Provide the annual authorization for the CHIPS and Marchiselli programs

This bill authorizes funding for the Consolidated Local Street and Highway Improvement Program (CHIPS) and Marchiselli programs for State fiscal year 2007-08. This bill also amends State Finance Law to increase the Thruway Authority bond cap available to fund program payments.

Section 1 of the bill authorizes the CHIPS and Marchiselli capital aid programs to counties, cities, towns and villages for State fiscal year 2007-08 at $296.5 million and $39.7 million respectively. This section also schedules program levels through SFY 2009-10.

Section 2 increases the bond cap for local highway and bridge service contract bonds issued by the Thruway Authority by $20 million to accommodate a one-time increase in the CHIPS Program authorized in SFY 2006-07.

Part B – Permanently extend the single audit program for recipients of State transportation assistance

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

Section 2 of Chapter 279 of the Laws of 1998, as amended by section 2 of Chapter 100 of the Laws of 1999 and Section 2 of Chapter 59 of the Laws of 2006, would be amended by eliminating the December 31, 2007 expiration date.

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

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

Part C – Permanently extend suspension of drivers’ licenses for certain alcohol related convictions to conform State penalties with Federal law

This bill conforms State law to Federal requirements regarding penalties for use of alcohol while operating motor vehicles. The action is necessary to prevent the State from losing vital transportation capital grants from the Federal government.

This bill makes permanent the State’s conformance to Federal law by imposing a suspension of driving privileges upon those charged with driving while intoxicated. This provision has been extended numerous times in the past, most recently by part D of Chapter 60 of the Laws of 2005, which extended the law until October 1, 2007.

Failure to enact this bill will result in non-compliance with Title 23 of the United States Code, causing the Department of Transportation to annually lose three percent of certain Federal highway funds (Surface Transportation Program, Interstate Maintenance, and National Highway System).

Part D – Amend Eminent Domain Procedure Law to suspend State interest payments when a condemnation notice is completed through certified mail

This bill amends section 514 (B) of Eminent Domain Procedure Law to allow the suspension of interest when service upon the condemnee(s) is completed through certified mail.

Effective immediately, section 514 (B) is amended to allow certified mail as an acceptable means of service of notice of acquisition.

Currently section 514 (B) of Eminent Domain Procedure Law restricts the suspension of interest to personal service of the notice of acquisition upon the condemnee. This section is contrary to section 502 (A) of Eminent Domain Procedure Law which states personal service and certified mail are suitable means of service of notice of acquisition.

The Department currently utilizes certified mail to provide notice of acquisition. This process is both quicker and more efficient than personal service. Amending section 514

Part E – Amend Transportation Law to conform with Federal law and allow continued collection of motor carrier registration fees

This bill allows collection of motor carrier fees in conformance with the Unified Carrier Registration Plan established under the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) (Public Law 109-59), which superseded the Single State Registration System (SSRS) Program effective December 31, 2006.

Effective immediately, this bill conforms State Transportation Law with SAFETEA-LU in order to:

• Broaden the definition of motor carriers subject to registration with the United States Department of Transportation under the Unified Carrier Registration System;
• Properly describe the registration requirements imposed by SAFETEA-LU and New York law; and
• Delete obsolete references to the Interstate Commerce Commission.

Sections 92 through 94 of Transportation Law require motor carriers engaged in interstate commerce to register with the New York State Department of Transportation (NYSDOT) their interstate authority; provide for the collection of fees related thereto; and authorize the use of such fees to defray Department costs for administering and enforcing motor carrier regulation.

The SSRS Program provided the Department with over $4 million annually from vehicle registration fees assessed on the motor carrier industry. This revenue has been used to support NYSDOT’s Motor Carrier Regulation Program.

Enactment of this bill will result in the continued collection of these fees necessary to support NYSDOT’s motor carrier safety activities. Absent these changes, NYSDOT will lose over $4 million annually in motor carrier revenues, and motor carriers located in New York State will be required to register in another state in order to legally engage in interstate commerce.

Part F – Require the Commissioner of Transportation to convene a panel of transit experts to develop transit performance measures, and expand transit system financial reporting

This bill requires the Commissioner of Transportation to convene a panel of transit operators to develop and seek input on transit industry performance standards and their potential to be incorporated in the distribution of State transportation operating assistance; it also requires public transportation systems to report projected operating and capital budgets to the Commissioner of Transportation on a five-year basis.

Effective immediately, this bill requires:

• Annual reports submitted by regional transportation authorities and other major transportation systems pursuant to Section 17-a of the Transportation Law to include historical financial information and five-year projected operating and capital budgets in a format prescribed by the Commissioner of Transportation.
• The Commissioner of Transportation to convene a panel of public transportation industry experts from systems other than the Metropolitan Transportation Authority (which has an exceptional scope of operations) to develop and seek input on industry-wide performance standards.
• A report of recommended industry standards, as agreed to by the Commissioner and confirmed by the Director of the Budget, to be issued by the panel to the Governor and the Legislature not more than six months following enactment of this bill.
• An analysis by such panel regarding the applicability of using performance-based measures as an option for distributing Statewide Mass Transportation Operating Assistance; and
• As deemed necessary by the Commissioner, the panel’s selected performance measures to be subject to periodic review and change by the panel.

Existing law does not obligate systems to report five-year projected operating budgets, but many systems do maintain such information for their own internal budgeting. Additionally, existing law does not mandate examination or use of performance standards as the basis for the distribution of State Transit Operating Assistance.

The distribution of State aid among transit systems has historically been determined through a collaborative analysis between the Division of Budget and the Department of Transportation (DOT), in which the State’s available resources are compared to the systems’ operating needs as analyzed by DOT. Section 17-A of the Transportation Law requires systems receiving State aid to issue an annual report on operations and financial status; however, this provision does not direct transit systems to achieve clear financial goals and standards for economy and efficiencies in order to receive additional State aid. The development of performance standards and their usage in determining levels of State aid could encourage systems to achieve greater operational efficiencies.

Part G – Require the Commissioner of Transportation to convene a Procurement Council to identify opportunities to achieve savings in procurements through the expanded use of aggregate purchases, leasing and other financial techniques

This bill requires the Commissioner of Transportation to convene a Procurement Council for the purpose of identifying opportunities to achieve savings through the expanded use of aggregate purchases, leasing or other financing techniques for the procurement of buses, mass transportation capital facilities and contractual services.

Effective immediately, and notwithstanding any other provision of law, this proposal would:

• Require the Commissioner of Transportation to convene a public transportation procurement council (the “Council”) comprised of the five regional transportation authorities and the Commissioner. The Council will also work in consultation with the New York Public Transit Association and other service providers of mass transportation eligible to receive State assistance according to Section 18-b of Transportation Law;
• Require the Council to provide a report with recommendations for short term and long term procurement efficiencies through the expanded use of aggregate purchases, leasing or other financing techniques in the procurement of buses, capital facilities and contractual services, as well as any impact these recommendations may have on the State;
• Require the report with recommendations to be reported to the Governor, the Legislature and the Director of the Budget one year following enactment of the Budget;
• Require the Commissioner to continue to consult with Council members on progress toward implementation of recommendations, and require the Council to continue to identify new savings opportunities in procurements; and
• Require an annual report beginning September 1, 2008 which shall contain any re-evaluation of existing recommendations, progress on implementing existing recommendations, and updated recommendations to achieve procurement savings.

Existing law provides that transit systems eligible to receive State assistance (including State public authorities) follow the procurement guidelines set forth in Public Authorities Law and General Municipal Law, without any guidance or requirement to participate collectively to achieve savings through economies of scale or alternative methods of finance.

This bill creates a Council with membership from the five regional transportation authorities that, in consultation with other municipal transit systems, will identify opportunities to engage in aggregate procurements, leasing or other financing techniques to achieve savings for transit systems receiving State aid.

Part H – Authorize annual utility and cable television assessments to provide funds to the Department of Health from Cable TV assessment revenues, and to Agriculture & Markets, the Department of Economic Development, the Office of Parks, Recreation and Historic Preservation, the Consumer Protection Board, Department of Environmental Conservation, and Homeland Security

This bill provides authorization to certain State agencies to finance their activities with revenues generated from assessments on public utilities and cable television companies.

Section 1 authorizes certain expenditures of the Department of Health as eligible expenses for cable television assessment revenue. Sections 2 through 7 authorize certain expenditures for the departments of Agriculture and Markets, Economic Development, Environmental Conservation, the Office of Parks, Recreation and Historic Preservation, the Consumer Protection Board, and the Office of Homeland Security as eligible expenses for utility assessment revenue.

Section 18-a of the Public Service Law authorizes the Department of Public Service (DPS) to assess public utility companies for Public Service Commission (PSC) and DPS costs associated with the regulation of utilities. Section 217 of the Public Service Law authorizes the DPS to assess cable television companies for PSC and DPS costs associated with the regulation of cable television companies.

This bill ensures that the affected agencies will be able to expend utility assessment funds on critical State programs. Chapter 59 of the Laws of 2006 provided similar authorization.

Part I – Authorize and direct the New York State Energy Research and Development Authority to make a payment to the General Fund of up to $913,000 and a payment of up to $330,000 to the Environmental Conservation Special Revenue Fund, Low Level Radioactive Waste Account

This bill authorizes the New York State Energy Research and Development Authority (NYSERDA) to make payments to the General Fund and the Environmental Conservation Special Revenue Fund.

This bill authorizes NYSERDA to make a payment of up to $913,000 to the General Fund from unrestricted corporate funds and a payment of $330,000 to the Department of Environmental Conservation Special Revenue Fund Low-Level Radioactive Waste Account from funds rebated to New York from the Federal government. The $913,000 transfer will help offset New York State’s debt service requirements relating to the Western New York Nuclear Service Center (West Valley), while the $330,000 transfer will help offset costs of the low level radioactive waste programs of the departments of Health and Environmental Conservation and NYSERDA. Without statute, NYSERDA could not make these contributions. Chapter 59 of the Laws of 2006 provided a similar one year authorization.

Part J – Make permanent the general loan powers of the New York State Urban Development Corporation (UDC)

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

Chapter 393 of the Laws of 1994 provides UDC with the general power to make loans until July 1, 2007.

Several similar bills repealing the sunset provision have previously been introduced, but not enacted. Provisions to extend the sunset date were enacted in 1997, 1998, 2000, 2002, 2003, 2004, 2005 and 2006.

This bill is necessary to extend UDC’s general loan powers. Absent enactment of this bill, UDC will only be authorized to make loans in connection with certain State-funded economic development programs that include loan authorization.

Part K – Authorize a $300 million Investment and Job Creation Program in the Empire State Development Corporation

This bill establishes a new $300 million Investment and Job Creation Program to be administered by the Urban Development Corporation d/b/a Empire State Development Corporation (ESDC).

This bill allows the State to make important financial contributions to support economic development projects across the State. State funding will be targeted to major projects that will create significant regional economic development benefits or that provide economic benefits to distressed areas.

Project applications will be solicited on a periodic basis. Projects will be selected based upon standards set forth in rules and regulations promulgated by ESDC. Priority will be given to projects that produce long-term employment creation or retention, foster partnerships with local and regional entities, and encourage private sector investment. Projects would be subject to unanimous approval of a newly established Capital Approval Board.

Part L – Establish a new public benefit corporation, the Stem Cell and Innovation Fund Corporation, to implement a new Stem Cell and Innovation program

This bill authorizes the creation of a new public benefit corporation, the New York State Stem Cell and Innovation Fund Corporation, to make economic development investments in stem cell biology and other life sciences, as well as other emerging technologies, to support economic development in the state of New York by investing in basic applied, translational or other research and development that will advance scientific discoveries and commercial growth.

This bill allows the New York State Stem Cell and Innovation Fund Corporation to provide grants and loans to support research and other activities that will promote economic growth in the State of New York by advancing scientific discoveries toward commercial applications in fields related to stem cell biology or other life sciences, and other emerging technologies. This bill limits the use of funds in the following manner: no funds may be used for human reproductive cloning; and no more than five percent of funds may be used for any single investment grant or loan award.

The Corporation will establish program rules and regulations concerning the competitive distribution of funds, including the following criteria: the competitive advantage that would be created or retained in New York State; the likelihood of substantial and sustainable employment growth in the State; and the likelihood that such investment would contribute to the development of industrial clusters in one or more regions of the State.

A Board of Directors will be created to govern the Corporation, and will consist of the chairperson of the New York State Urban Development Corporation and the Commissioner of Economic Development as ex-officio members and thirteen members appointed by the Governor in the following manner: seven will be appointed directly by the Governor, two will be appointed on the nomination of the Temporary President of the Senate, two will be appointed on the nomination of the Speaker of the Assembly, one will be appointed on the nomination of the Senate Minority Leader, and one will be appointed on the nomination of the Assembly Minority Leader. The Board will include representatives from the medical and scientific research; economic development and venture capital; and disease advocacy communities. Board members will serve no more than two terms of three years, and shall serve without compensation.

The Board will perform the following functions: establish rules and guidelines for the operation of the Board and its working groups; develop annual and long-term strategic investment research and financial plans to create or retain jobs in the State of New York; make financial decisions on research standards and grant awards in New York State; ensure the completion of an annual financial audit of operations; establish policies regarding intellectual property and licensing and transfer rights arising from research funding; and issue public reports on the activities.

In addition, the Board will establish a Stem Cell and Life Science Advisory Council and an Emerging Technologies Advisory Council to provide policy advice concerning the following: the establishment of investment goals, scientific and economic objectives and standards; the evaluation of Corporation programs, investments, and accomplishments; and recommendations for future programmatic activities.

This bill also establishes public and financial accountability standards, including the issuance of an annual report to the public; provides for the completion of an independent financial audit subject to review by the State Comptroller; creates conflict of interest guidelines; and sets standards subjecting all grants and loan awards to intellectual property agreements for the benefit of New York State.

Finally, this bill requires the Stem Cell and Innovation Fund Corporation to provide recommendations for the authorization and scope of a $1.5 billion bond act to be submitted to the voters in November 2008 for the purpose of funding stem cell and other life sciences and other emerging technologies.

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

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

The bill authorizes NYSERDA to finance its Research, Development and Demonstration Program and its Policy and Planning Program with revenues from assessments on gas corporations and electric corporations. 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 these programs. This is an annual Article VII provision that was last enacted as Chapter 59 of the Laws of 2006. Without this legislation, NYSERDA could not continue operating necessary energy programs in the 2007-08 State fiscal year.

Part N – Amend Superfund fees and make technical corrections to the tonnage provisions

This bill amends the Environmental Conservation Law (ECL) to make a technical change to correct the hazardous wastewater surcharge.

This bill amends ECL §72-0403(1)(l) to correct an error by changing the threshold amount for the annual $6,000 surcharge on hazardous wastewater from 15,000 tons per year to 15 tons per year, as established by Chapter 1 of the Laws of 2003. In 2003, Senate bill 5702 and Assembly bill 9120, which extended and reformed the State’s Superfund and Brownfield Program, were approved by each house. The text of these bills established a $6,000 per ton fee for entities that generate more than 15 tons of hazardous wastewater. However, a technical error incorrectly resulted in the threshold level being codified at 15,000 tons in Chapter 1 of the Laws of 2003.

Part O – Increase the Environmental Protection Fund General Fund guarantee

This bill increases the aggregate amount of allowable General Fund transfers into the Environmental Protection Fund (EPF) to a total not to exceed $322,171,000.

This bill amends section 92-s of State Finance Law to increase the aggregate amount of allowable transfers from the General Fund to the EPF to $322,171,000. This bill ensures that all transfers from the EPF to the General Fund are fully reimbursable if funds in the EPF are deemed insufficient to meet actual and anticipated disbursements in a given fiscal year.

Part P – Expand the bottle bill to cover additional beverage containers, and to provide for the return of unclaimed deposits on beverage containers to the State for deposit into the Environmental Protection Fund (EPF)

This bill amends the Environmental Conservation Law (ECL), Economic Development Law (EDL) and State Finance Law (SFL) for the purpose of: (1) expanding the State’s returnable container act (the “Bottle Bill”) to include non-carbonated beverage containers; (2) requiring payment by deposit initiators (generally, manufacturers or distributors) of unclaimed deposits to the Environmental Protection Fund (EPF); and (3) providing financial incentives to municipalities, not-for-profit organizations and businesses to enhance container recycling capabilities.

Section 1 amends section 27-1001 of the ECL for consistency with other ECL sections that are revised by the bill.

Sections 2 and 3 amend section 27-1003 of the ECL to (1) define the class of beverage containers that are subject to the expanded bottle bill, and (2) add several new subdivisions thereto to define new terms and concepts used in the expanded bottle bill.

Sections 4 and 5 repeal and replace sections 27-1005 and 27-1007 of the ECL, and amend section 27-1009 of the ECL, to (1) define and clarify the rights and legal obligations of persons subject to the expanded bottle bill, and (2) increase the fee paid to retailers for the handling of empty beverage containers.

Sections 6 and 6-a repeal and replace various subdivisions of section 27-1013 of the ECL to make this section consistent with other ECL sections that are revised by the bill.

Section 7 adds a new section 27-1012 to the ECL to (1) require deposit initiators to pay unclaimed refund values to the State for deposit in the EPF, (2) specify procedures and requirements for registration of deposit initiators and the collection, handling and payment of refund values, (3) provide the Commissioner of Taxation and Finance with authority to administer and enforce several provisions of the expanded bottle bill, including those relating to registration of deposit initiators, maintenance of accounts and records, reporting requirements and payment obligations, and (4) add penalties for violation of these new provisions.

Section 8 amends section 27-1013 of the ECL for consistency with other ECL sections that are revised by the bill.

Section 9 amends section 27-1014 of the ECL to clarify the authority of the Commissioner of Environmental Conservation to adopt rules and regulations.

Section 10 amends section 27-1015 of the ECL to expand and clarify the penalties for violation of the expanded bottle bill.

Section 11 adds a new section 27-1016 to the ECL to require the Commissioner of Environmental Conservation to establish a public education program to disseminate information about implementation of the expanded bottle bill.

Section 12 amends section 27-1017 of the ECL to clarify the rights of political subdivisions under the bottle bill.

Section 13 adds a new section 27-1018 to the ECL to create a “returnable container act advisory board” to monitor and make recommendations to the Governor and Legislature concerning the State’s beverage container recycling program.

Sections 14 and 15 add a new section 27-1019 to the ECL and amend section 261 of the EDL to provide for assistance payments to municipalities and not-for-profit organizations under to the ECL, and to businesses under the EDL, to defray the costs of purchasing and improving beverage container recycling equipment and facilities.

Section 16 amends subdivision 3 of section 92-s of the State Finance Law to require that unclaimed refund values paid to the state be deposited into the EPF.

Section 17 amends subdivision 6 of section 92-s of the SFL to authorize that moneys from the solid waste account be available for the beverage container assistance program created by the new section 27-1019 of the ECL.

Section 18 sets forth the effective dates for the various sections of the bill.

Current law does not require the collection of deposits on, or the redemption of, non-carbonated beverage containers. In addition, the current statute does not mandate that revenues from unclaimed deposits (conservatively estimated at $100 million annually), be paid to the State. As a result of the bill, monies from unclaimed deposits will be paid to the State and deposited in the EPF to support critical ongoing environmental programs, and litter and the volume of solid waste produced from unclaimed beverage containers will be reduced.

Bottles, cans and jars used to contain liquor, wine, infant formula, milk and dairy products, rice and soy milks, dietary supplements, medications, concentrates and soups remain exempt from the bottle bill.

Part Q – Authorize the Department of Environmental Conservation to increase fees to ensure compliance with Title V of the Federal Clean Air Act

Title V of the Federal Clean Air Act requires that states regulate all facilities that emit a certain level of contaminants into the air. This bill increases operating permit fees on regulated air contaminates from $45 to a maximum of $67 per ton and establishes a minimum fee of $1,250 per operating permit facility.

This bill amends Environmental Conservation Law to increase fees and establish minimum fees. Enactment will allow the Department of Environmental Conservation to collect adequate financial resources to continue effective oversight of facilities regulated pursuant to Title V of the Federal Clean Air Act.

Part R – Increase various Department of Environmental Conservation regulatory fees, including concentrated animal feeding operations, dam safety, stormwater, State Pollution Discharge Elimination System and well drillers

This bill amends the Environmental Conservation Law (ECL) to: (i) increase the registration fee for well drillers; (ii) increase certain State Pollutant Discharge Elimination System (SPDES) program fees; and (iii) establish a fee for dam construction and renovation permits and an annual fee for dams.

ECL Section 15-1525(3) is amended to increase the annual registration fee from $10 to $100 for well drillers.

ECL Section 72-0602 is amended to increase: annual SPDES water monitoring program fees for private/commercial/institutional (P/C/I) facilities from $100 to $300 for small facilities and from $200 to $600 for large facilities; general permit fees from $50 to $150 for medium concentrated animal feeding operations (CAFOs) and $500 for large CAFOs; and industrial stormwater discharge permits from $50 to $300.

These fees have not been raised in several years and the additional increase will enable the DEC to continue its inspection and monitoring of regulated facilities, including major industrial and commercial facilities and CAFOs.

Article 72 of the ECL is amended by adding a new Title 9 to establish a $500 fee for a permit to erect, construct, reconstruct or repair a dam pursuant to ECL Section 15-0503, and to establish a $500 fee to be paid annually by dam owners.

Currently, there is no fee to apply for such a permit. Additionally, there are no annual fees to own a dam. The fees proposed in this bill will enable DEC to increase dam safety inspections and ensure compliance with State regulations.

Part S – Authorize the State Comptroller to intercept any local assistance aid to New York City for the cost of administering the State Rent Regulation Program

This bill amends the Emergency Tenant Protection Act (ETPA) to allow for the intercept of State aid payments to New York City other than per capita local assistance to recoup State costs associated with the administration of the Rent Regulation Program.

The ETPA, originally enacted in 1974, was amended in 2000 to allow the Division of Housing and Community Renewal (DHCR) to intercept per capita local assistance payments to New York City for the cost of administering the Rent Regulation Program. With a 2007-08 Executive Budget recommendation to eliminate per capita aid to New York City, DHCR will be required to directly bill the City for costs of the Rent Program. This bill would amend the ETPA to allow the State Comptroller to withhold any other State aid payments due to NYC in the event of non-payment of the direct billing. Including other State aid as eligible for Comptroller withholding would allow the State to recoup costs of the program.

Part T – Permit the Department of Motor Vehicles to use the United States Postal Service change of address file to improve the Department’s mailing accuracy

This bill allows the Department of Motor Vehicles (DMV) to permanently take advantage of bulk mailing rates when mailing notices of revocation, suspension or other orders issued by the Department by using updated addresses provided by the United States Postal Service (USPS). The USPS provides a technological method by which current addresses can be applied to DMV’s outgoing mail, and mandates use of this system in order to take advantage of the Postal Service’s reduced bulk mailing rate.

This bill:

• Clarifies that mailing of notices of suspension or revocation or other orders of the Department may be made to either an address on file with DMV or to the address provided by the USPS.
• Permits mailing of notices of suspension for failure to appear in or failure to pay a fine to DMV’s Traffic Violations Bureau (TVB) to an address provided by the USPS.
• Permits mailing of notices of fines due to TVB and intent to file a default judgment to an address provided by the USPS.
• Permits mailing of notices of insurance-related revocations to an address provided by the USPS.
• Permits mailing of other notices of revocation or suspension to an address provided by the USPS.

Various provisions of the Vehicle and Traffic Law require the Department of Motor Vehicles to mail suspension and revocation notices to the address last provided by the motorist.

DMV currently sends mail to the motorist’s address on file. However, motorists frequently do not notify DMV of a change of address in a timely manner. This bill authorizes DMV to utilize the USPS to update motorists’ addresses more efficiently. Thus, DMV will be able to complete “statutory” notification to motorists regarding driving privileges more effectively. This will reduce complaints that a motorist did not receive proper notification of driving status.

Part U – Extend provisions for the suspension of registrations and licenses for lapses in insurance coverage, and allow reinstatement upon payment of a fine

This bill makes permanent certain provisions which are scheduled to expire on June 30, 2007 relating to the Motor Vehicle Financial Security Act.

This bill makes permanent certain provisions of the Motor Vehicle Financial Security Act, including existing laws to:

• Require notices of policy termination to include a notice of the punitive effects and penalties imposed for failure to maintain continuous insurance as required pursuant to the Motor Vehicle Financial Security Act;
• Provide for the suspension, rather than revocation, of registrations and licenses for lapses in insurance, with the period of suspension being equal to the time period during which the vehicle was uninsured;
• Allow orders of suspension to be terminated if the registrant pays a fine of $8 per day for a period of up to 90 days during the period of the lapse in insurance coverage. This may only be used once during a 36 month period. The bill also provides that a suspension may be waived if the lapse in coverage was fifteen days or fewer;
• Penalize the knowing purchase of a fraudulent license, registration or license plate with a first offense punishable as a misdemeanor and a second or subsequent offense within ten years punishable as a class E felony; and
• Require insurers to file notice of termination of a policy with the Department of Motor Vehicles within 30 days of the effective date of the termination and notice of issuance of new policies to be filed within seven days.

These provisions were last extended for five years in 2002.

These provisions are important parts of New York’s laws relating to compulsory auto insurance coverage and it is important that these provisions be extended.

Part V – Conform Vehicle and Traffic Law with Federal requirements governing operators of commercial motor vehicles

This is a new bill to conform the Vehicle and Traffic Law (VTL) with Federal requirements governing operators of commercial motor vehicles to avoid the loss of Federal highway funding.

This bill conforms Vehicle and Traffic Law (VTL) with provisions of Federal law to authorize the Department of Motor Vehicles (DMV) to:

• Extend the retention period for out-of-service violations to 15 years;
• Provide that no person shall be issued a hazardous materials endorsement unless such person meets all Federal requirements for such an endorsement;
• Clarify the exemption from commercial driver’s license (CDL) requirements for members of the armed forces operating a motor vehicle for military purposes;
• Provide that when a CDL is suspended for serious traffic violations, such suspension shall not take effect until any other suspension for serious traffic violations has been terminated;
• Provide that where a Federal record review finds that another state failed to take the appropriate disqualification action against a commercial driver’s license holder, New York State must initiate the appropriate sanction;
• Require that if a person who does not hold a CDL commits certain disqualifying offenses in a commercial motor vehicle they shall be subject to the same license sanctions as if such person held a CDL;
• Require that within ten days of receiving notification of a conviction of a non-resident involving a traffic offense committed by a CDL holder, or by any driver in a commercial vehicle, DMV shall transmit notice of such conviction to the non-resident’s home jurisdiction;
• Require that a pre-conviction conditional license, issued to a motorist who is suspended pending prosecution for operating a motor vehicle with a blood alcohol content (BAC) of .08 or more, shall not be valid for the operation of a commercial motor vehicle;
• Require that a hardship privilege, issued to a motorist who is suspended pending prosecution for operating a motor vehicle with a BAC of .08 or more, shall not be valid for the operation of a commercial motor vehicle;
• Provide that all commercial motor vehicles must stop at a railroad grade crossing and that in situations where a stop is not mandated, the operator must exercise caution before proceeding;
• Provide that no person may operate a vehicle without sufficient undercarriage on railroad tracks; and
• Establish fines for drivers violating an out-of-service order, for employers who permit operation of a vehicle that has been placed out-of-service and for employers who knowingly allow, require, permit or authorize a person to violate State, Federal or local laws governing railroad grade crossings.

Existing law is summarized as follows:

• The current retention period for out-of-service orders is only ten years;
• The DMV requirement that all persons applying for a hazardous materials endorsement comply with Federal hazardous materials qualifications is procedural and not statutory;
• The current CDL military exemption applies to military vehicles, not to vehicles used for military purposes;
• If the DMV imposes two suspensions arising out of serious traffic violations occurring in a commercial motor vehicle, such suspensions are served concurrently;
• The DMV Commissioner does not have authority to conduct a Federal record review to determine if other states have taken appropriate action against a CDL holder applying for a New York State license, nor to take action based on such review;
• DMV has authority to impose license sanctions against a non-CDL holder who commits violations in a commercial motor vehicle only if such violations are set forth in VTL section 510-a;
• There is no explicit statutory authority permitting DMV to send certain traffic convictions to other jurisdictions, and there is no explicit statutory authority providing that a pre-conviction conditional license or a hardship privilege cannot be used to operate a commercial motor vehicle;
• The violation for failure to stop at a railroad grade crossing does not apply to all commercial motor vehicles, and there is no violation for failure to stop at a railroad crossing if the course is not clear when a stop is not required. Also, there is no violation for operating a vehicle without sufficient undercarriage on railroad tracks;
• The Transportation Law imposes fines for out-of-service violations that are not consistent with Federal requirements; and
• No violation exists for an employer permitting a person to drive in violation of Federal, State and local laws governing railroad crossings.

Chapters 60 of the Laws of 2005 and 59 of the Laws of 2006 brought New York State largely into compliance with the Motor Carrier Safety Improvement Act of 1999 (MCSIA) and the Commercial Motor Vehicle Safety Act of 1986 (CMVSA). Failure to do so would have resulted in the loss of a significant percentage of Federal highway funding and the possible decertification of the State’s right to issue CDLs. The Federal Motor Carrier Safety Administration conducted an audit in April 2006 to assess the Department’s compliance with Federal law. This bill addresses the deficiencies noted in the audit and is necessary to avoid the loss of highway funding and the potential for decertification.

Part W – Permanently extend provisions relating to the suspension and disqualification of driving privileges for failure to make child support payments

This bill makes permanent those provisions of law which allow the enforcement of child support and combined spousal and child support through the suspension of driving privileges.

Effective immediately, this bill repeals subdivision 19 of section 246 of Chapter 81 of the Laws of 1995, which amends the Vehicle and Traffic Law and Social Services Law relating to the enforcement of child support through the suspension of driving privileges. Such repeal will remove the expiration date applicable to these enforcement provisions.

These provisions were first adopted in 1995 and last extended for two years in 2005.

The ability to suspend driving privileges of those who fail to pay child support obligations has been an effective tool for child support enforcement. Most delinquent parents subjected to these child support enforcement provisions make payments or appropriate payment arrangements once they receive a notice of impending license suspension. Since 1995, over 300,000 individuals have complied with their child support obligations as a result of this statute.

Part X – Redirect fees, fines, penalties and assessments of the Department of State’s Business and Licensing Services Account to the General Fund

This bill directs the revenues derived from fees, fines, penalties and assessments of the Department of State’s (DOS) Business and Licensing Services Account to the General Fund and provides for the financing of costs incurred by the Department’s business and licensing operations from the General Fund upon appropriation by the Legislature and allocation by the Director of the Budget.

Effective April 1, 2007, this bill amends the State Finance Law and the General Business Law to:

• Redirect revenues derived from all of DOS’s business and licensing activities and deposited in the DOS Business and Licensing Special Revenue Account to the General Fund.
• Shift the financing of all costs incurred by DOS business and licensing activities, previously financed by the Business and Licensing Special Revenue Account, to the General Fund.
• Obviate the need for annual sweeps of the DOS Business and Licensing Special Revenue Account.

Transferring DOS business and licensing receipts and activities to the General Fund will foster transparency in one of the largest and most mission-critical operations administered by the Department. Annual business and licensing receipts greatly exceed related agency expenditures resulting in a need to effect large transfers to the General Fund from these accounts each year. This bill makes such transfers unnecessary and simplifies the agency’s financing structure.

Part Y – Permanently authorize the Secretary of State to charge increased fees for expedited handling of documents

This bill makes permanent provisions of law permitting the Secretary of State to charge increased fees for the expedited handling of documents issued by or requested from the Department’s Division of Corporations.

The provisions of Executive Law section 96(11) that authorize the Secretary of State to charge increased fees for expedited handling of requests made to the Division of Corporations expire on March 31, 2007. Historically, this statute has been extended annually to coincide with the enactment of the Budget. An annual sunset of a service provided by the Department of State to the business community is inefficient.

Part Z – Permanently extend the formula for distribution of the Federal Community Services Block Grant Program

This bill amends the Executive Law section 159-i to extend the distribution formula for the Community Service Block Grant Program.

The Executive Law section 159-i currently authorizing the distribution formula for the Community Services Block Grant (CSBG) Program expires September 30, 2007. Historically, this statute has been extended annually, and this bill would make this distribution formula permanent. This bill also seeks to delete an existing provision relating to establishing eligible entities in counties without community action programs. This provision is no longer necessary since all 62 counties in New York State are now served by eligible entities.

Part AA – Amend and clarify reporting requirements in the Capital Program and Financing Plan (CPFP) for the Dedicated Highway and Bridge Trust Fund (DHBTF)

This bill modifies State Finance Law by altering and clarifying several reporting and appropriation itemization requirements of the Capital Program and Financing Plan (CPFP) regarding the Dedicated Highway and Bridge Trust Fund (DHBTF) to improve the relevance and feasibility of such requirements and increase understanding of the DHBTF’s operation.

Legislation enacted in 2006 instituted additional reporting, appropriation and reappropriation requirements in the CPFP and in budget bills submitted with the Executive Budget. These requirements included:

• Reporting only on three-quarters of the current fiscal year;
• Reporting requirements that fail to address transfers from the DHBTF;
• Combining reporting of appropriations, reappropriations and disbursements for debt service, capital, state operating, contractual engineering and State forces engineering in a way that was unclear, or inconsistent with the financial structure and budgeting procedures of the DHBTF;
• Itemizing appropriations and reappropriations from the DHBTF for pay-as-you-go financing, personal service and non-personal service expenses;
• Providing detailed reports on each individual DOT capital project for each DHBTF appropriation; and
• Citing 89-b of the State Finance Law for each DHBTF appropriation; and a quarterly report by the Director of the Budget of the amount of the prior quarter’s disbursements to be financed with bond proceeds, taxes, fees, transfers or other sources.

While transparency in budget reporting is essential, the 2006 amendments to the State Finance Law imposed several reporting requirements that are impossible to comply with or duplicative of existing reports. For example, because bonding estimates for the DHBTF are not (and cannot reasonably be) developed on an individual appropriation basis, an itemization of pay-as-you go financing in individual appropriations is impracticable. Similarly, including in the CPFP a detailed description of each capital project, which is already prepared separately, would be voluminous and impede concise and understandable budget presentation.

Accordingly, effective immediately, this bill:

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

This bill provides clarification to the existing law while preserving its original intent by: separating a more comprehensive and complete financial plan for the DHBTF from a report of individual appropriations and reappropriations and their associated disbursements; eliminating onerous or duplicative reporting of capital projects that is addressed through broader distribution of existing required reports; and amending existing law requiring reporting that cannot be produced due to the financial structure and budgeting procedures of the DHBTF.

Part BB – Permanently extend suspension of drivers’ licenses for certain drug related convictions to conform State penalties with Federal law

This bill conforms State law to Federal requirements regarding penalties for use of drugs while operating motor vehicles. The action is necessary to prevent the State from losing vital transportation capital grants from the Federal government.

This bill makes permanent the State’s conformance to Federal law by imposing a suspension of driving privileges upon those convicted of certain drug-related crimes. This provision has been extended numerous times in the past, most recently by part D of Chapter 60 of the Laws of 2005, which extended the law until October 1, 2007.

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

BUDGET IMPLICATIONS:

Part A – Provide the annual authorization for the CHIPS and Marchiselli programs

Enactment of this bill is necessary to implement the 2007-08 Executive Budget.

Part B – Permanently extend the single audit program for recipients of State transportation assistance

Absent these changes, the Department would incur up to $300,000 in additional annual auditing costs for these programs.

Part C – Permanently extend suspension of drivers’ licenses for certain alcohol related convictions to conform State penalties with Federal law

Enactment of this bill is necessary to implement the 2007-08 Executive Budget. Failure to do so would require the State to transfer highway capital funds (approximately $10.5 million in State fiscal year 2007-08 and $21 million in subsequent fiscal years) to highway safety programs.

Part D – Amend Eminent Domain Procedure Law to suspend State interest payments when a condemnation notice is completed through certified mail

Enactment of this bill is necessary to implement the 2007-08 Executive Budget. The Financial Plan includes an $800,000 savings in annual interest costs.

Part E – Amend Transportation Law to conform with Federal law and allow continued collection of motor carrier registration fees

Enactment of this bill is necessary to implement the 2007-08 Executive Budget because it preserves over $4 million in fee revenues used to support NYSDOT motor carrier regulation activities.

Part F – Require the Commissioner of Transportation to convene a panel of transit experts to develop transit performance measures, and expand transit system financial reporting

Enactment of this bill is necessary to implement the 2007-08 Executive Budget. The current practice for evaluating financial data from the 17-A reports and determining the distribution of funding by line item appropriation has resulted in allocation of transit funds based upon financial need rather than upon operational and financial performance. This has resulted in transit systems with the largest budgetary deficits receiving the largest share of limited State resources. Developing performance metrics will establish a more financially prudent methodology to distribute aid according to measurable performance benchmarks.

Part G – Require the Commissioner of Transportation to convene a Procurement Council to identify opportunities to achieve savings in procurements through the expanded use of aggregate purchases, leasing and other financial techniques

Enactment of this bill is necessary to implement the 2007-08 Executive Budget. This bill creates the Council to initiate a process of evaluating and implementing aggregate purchasing, leasing or other financing techniques to achieve savings for State transit systems. Bus leasing is anticipated to reduce the capital cash requirements of the Dedicated Mass Transportation Trust Fund (DMTTF) by $5 million annually, which will permit an additional $5 million in annual operating assistance to be paid from the DMTTF.

Part H – Authorize annual utility and cable television assessments to provide funds to the Department of Health from Cable TV assessment revenues, and to Agriculture & Markets, the Department of Economic Development, the Office of Parks, Recreation and Historic Preservation, the Consumer Protection Board, Department of Environmental Conservation, and Homeland Security

Enactment of this bill is necessary to implement the 2007-08 Executive Budget because it ensures the recovery of expenses incurred by the departments of Health, Agriculture and Markets, Economic Development, Environmental Conservation, the Office of Parks, Recreation and Historic Preservation, the Consumer Protection Board, and the Office of Homeland Security.

Part I – Authorize and direct the New York State Energy Research and Development Authority to make a payment to the General Fund of up to $913,000 and a payment of up to $330,000 to the Environmental Conservation Special Revenue Fund, Low Level Radioactive Waste Account

Enactment of this bill is necessary to implement the 2007-08 Executive Budget because it authorizes NYSERDA to make these payments to the General Fund and the Environmental Conservation Special Revenue Fund Low-Level Radioactive Waste Account as contemplated in the Financial Plan.

Part J – Make permanent the general loan powers of the New York State Urban Development Corporation (UDC)

Enactment of this bill is necessary to implement the 2007-08 Executive Budget, which assumes that UDC will provide certain economic development assistance through loans, rather than grants. Absent this legislation, the Corporation could not fund loans approved through the Metropolitan Economic Revitalization Fund.

Part K – Authorize a $300 million Investment and Job Creation Program in the Empire State Development Corporation

Enactment of this bill is necessary to implement the 2007-08 Executive Budget, which assumes that a new Investment and Job Creation Program will be established.

Part L – Establish a new public benefit corporation, the Stem Cell and Innovation Fund Corporation, to implement a new Stem Cell and Innovation program

Enactment of this bill is necessary to implement the 2007-08 Executive Budget, which assumes the creation of the New York State Stem Cell and Innovation Fund Corporation and provides support of $100 million for research and development activities of the Corporation.

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

Enactment of this bill is necessary to implement the 2007-08 Executive Budget because it authorizes the collection of assessments to fund NYSERDA’s research, development and demonstration, and energy policy and planning programs. A $16.1 million appropriation is included in NYSERDA’s budget for these energy programs.

Part N – Amend Superfund fees and make technical corrections to the tonnage provisions

Enactment of this bill is necessary to implement the 2007-08 Executive Budget. There are 160 facilities that generate 15 or more tons of hazardous wastewater per year with only 41 of these facilities generating 15,000 tons or more a year. By changing the threshold to 15 tons, as was the original intent, the State will receive approximately $700,000 a year in additional revenue.

Part O – Increase the Environmental Protection Fund General Fund guarantee

Enactment of this bill is necessary to implement the 2007-08 Executive Budget by guaranteeing reimbursement of the proposed additional transfer from the EPF to the General Fund of $20 million.

Part P – Expand the bottle bill to cover additional beverage containers, and to provide for the return of unclaimed deposits on beverage containers to the State for deposit into the Environmental Protection Fund (EPF)

Enactment of this bill is necessary to implement the 2007-08 Executive Budget. Since the bottle bill changes are effective as of January 1, 2008, one quarter of annual revenues - conservatively estimated at $25 million - will be realized in State fiscal year 2007-08.

Part Q – Authorize the Department of Environmental Conservation to increase fees to ensure compliance with Title V of the Federal Clean Air Act

Enactment of this bill is necessary to implement the 2007-08 Executive Budget. Increasing permit fees to a maximum of $67 per ton and establishing a minimum permit fee per facility will increase revenues by approximately $6.4 million for State fiscal year 2007-08 and allow the Clean Air Fund Operating Permit Account to remain in balance, as required by Federal statute.

Part R – Increase various Department of Environmental Conservation regulatory fees, including concentrated animal feeding operations, dam safety, stormwater, State Pollution Discharge Elimination System and well drillers

Enactment of this bill is necessary to implement the 2007-08 Executive Budget because without the increased fees, DEC will not have the financial resources to fully implement and administer programs for well drillers, SPDES, CAFOs, industrial stormwater and dam safety. The proposed fees are expected to raise additional revenues of approximately $2.5 million, which will be deposited into the Environmental Regulatory Account.

Part S – Authorize the State Comptroller to intercept any local assistance aid to New York City for the cost of administering the State Rent Regulation Program

Enactment of this bill is necessary to implement the 2007-08 Executive Budget because of the elimination of per capita local assistance payments to New York City. In the event of non-payment by the City and without any ability to withhold aid payments, the impact to the General Fund would be $37 million for 2007-08.

Part T – Permit the Department of Motor Vehicles to use the United States Postal Service change of address file to improve the Department’s mailing accuracy

Enactment of this bill is necessary to implement the 2007-08 Executive Budget by helping DMV save approximately $200,000 annually.

Part U – Extend provisions for the suspension of registrations and licenses for lapses in insurance coverage, and allow reinstatement upon payment of a fine

Enactment of this bill is necessary to implement the 2007-08 Executive Budget because a portion of the revenues from the penalties assessed is deposited in DMV’s Compulsory Insurance Fund, which supports DMV’s efforts to ensure that motorists are properly insured.

Part V – Conform Vehicle and Traffic Law with Federal requirements governing operators of commercial motor vehicles

Enactment of this bill is necessary to implement the 2007-08 Executive Budget. Failure to enact this legislation could result in the loss of five percent ($17.5 million) of Federal highway funds during the 2007-08 fiscal year. The State could lose 10 percent
($52.5 million) of Federal highway funding in subsequent fiscal years.

Part W – Permanently extend provisions relating to the suspension and disqualification of driving privileges for failure to make child support payments

Enactment of this bill is necessary to implement the 2007-08 Executive Budget. These provisions permanently preserve the reforms - both fiscal and programmatic - made to the Child Support Enforcement Program.

Part X – Redirect fees, fines, penalties and assessments of the Department of State’s Business and Licensing Services Account to the General Fund

Enactment of this bill is necessary to implement the 2007-08 Executive Budget because it would provide $44 million in additional General Fund revenues in 2007-08 with
$26 million in recurring revenues in State fiscal year 2008-09 and beyond.

Part Y – Permanently authorize the Secretary of State to charge increased fees for expedited handling of documents

Enactment of this bill is necessary to implement the 2007-08 Executive Budget since it would preserve the Secretary of State’s existing authority to charge fees

Part Z – Permanently extend the formula for distribution of the Federal Community Services Block Grant Program

The Department of State (DOS) has administered the Community Services Block Grant Program since 1982. The Department’s authority to distribute CSBG funds is predicated upon the receipt of funding from the Federal government. As DOS again anticipates funding for the CSBG program for fiscal year 2007-08, enactment of this bill would provide the Department the requisite authority to distribute these funds as assumed in the Executive Budget.

Part AA – Amend and clarify reporting requirements in the Capital Program and Financing Plan (CPFP) for the Dedicated Highway and Bridge Trust Fund (DHBTF)

Enactment of this bill is necessary to implement the 2007-08 Executive Budget to clarify CPFP reporting requirements and appropriation content.

Part BB – Permanently extend suspension of drivers’ licenses for certain drug related convictions to conform State penalties with Federal law

Enactment of this bill is necessary to implement the 2007-08 Executive Budget. Failure to do so would cost the State ten percent of certain categories of Federal highway capital funds (approximately $35 million in State fiscal year 2007-08 and $70 million in subsequent fiscal years).

EFFECTIVE DATE:

Part A – Provide the annual authorization for the CHIPS and Marchiselli programs

This bill takes effect on April 1, 2007.

Part B – Permanently extend the single audit program for recipients of State transportation assistance

This bill takes effect on April 1, 2007.

Part C – Permanently extend suspension of drivers’ licenses for certain alcohol related convictions to conform State penalties with Federal law

This bill takes effect on April 1, 2007.

Part D – Amend Eminent Domain Procedure Law to suspend State interest payments when a condemnation notice is completed through certified mail

This bill takes effect immediately.

Part E – Amend Transportation Law to conform with Federal law and allow continued collection of motor carrier registration fees

This bill takes effect immediately, and shall be deemed to have been in full force and effect on and after December 31, 2006.

Part F – Require the Commissioner of Transportation to convene a panel of transit experts to develop transit performance measures, and expand transit system financial reporting

This bill takes effect immediately.

Part G – Require the Commissioner of Transportation to convene a Procurement Council to identify opportunities to achieve savings in procurements through the expanded use of aggregate purchases, leasing and other financial techniques

This bill takes effect immediately.

Part H – Authorize annual utility and cable television assessments to provide funds to the Department of Health from Cable TV assessment revenues, and to Agriculture & Markets, the Department of Economic Development, the Office of Parks, Recreation and Historic Preservation, the Consumer Protection Board, Department of Environmental Conservation, and Homeland Security

This bill takes effect on April 1, 2007.

Part I – Authorize and direct the New York State Energy Research and Development Authority to make a payment to the General Fund of up to $913,000 and a payment of up to $330,000 to the Environmental Conservation Special Revenue Fund, Low Level Radioactive Waste Account

This bill takes effect on April 1, 2007.

Part J – Make permanent the general loan powers of the New York State Urban Development Corporation (UDC)

This bill takes effect April 1, 2007.

Part K – Authorize a $300 million Investment and Job Creation Program in the Empire State Development Corporation

This bill takes effect April 1, 2007.

Part L – Establish a new public benefit corporation, the Stem Cell and Innovation Fund Corporation, to implement a new Stem Cell and Innovation program

This bill takes effect April 1, 2007.

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

This bill takes effect April 1, 2007.

Part N – Amend Superfund fees and make technical corrections to the tonnage provisions

This bill takes effect on April 1, 2007.

Part O – Increase the Environmental Protection Fund General Fund guarantee

This bill takes effect on April 1, 2007.

Part P – Expand the bottle bill to cover additional beverage containers, and to provide for the return of unclaimed deposits on beverage containers to the State for deposit into the Environmental Protection Fund (EPF)

This bill shall take effect immediately; provided however, that sections 2 and 3 of this bill shall take effect November 1, 2007; sections 4 through 6, 6-a, 8,10, 12 and 13, shall take effect January 1, 2008; and section 7 of the bill shall take effect November 1, 2007, except that the requirements to make deposits, file reports and make withdrawals and payments under section 27-1012 of the ECL as added by such section 7 of the bill shall first apply to the period beginning on January 1, 2008 and ending February 29, 2008.

Part Q – Authorize the Department of Environmental Conservation to increase fees to ensure compliance with Title V of the Federal Clean Air Act

This bill takes effect immediately.

Part R – Increase various Department of Environmental Conservation regulatory fees, including concentrated animal feeding operations, dam safety, stormwater, State Pollution Discharge Elimination System and well drillers

This bill takes effect immediately.

Part S – Authorize the State Comptroller to intercept any local assistance aid to New York City for the cost of administering the State Rent Regulation Program

This bill takes effect on April 1, 2007.

Part T – Permit the Department of Motor Vehicles to use the United States Postal Service change of address file to improve the Department’s mailing accuracy

This bill takes effect immediately.

Part U – Extend provisions for the suspension of registrations and licenses for lapses in insurance coverage, and allow reinstatement upon payment of a fine

This bill takes effect on April 1, 2007.

Part V – Conform Vehicle and Traffic Law with Federal requirements governing operators of commercial motor vehicles

This bill takes effect immediately, except that sections 10, 11 and 12 take effect 60 days after the bill has become law.

Part W – Permanently extend provisions relating to the suspension and disqualification of driving privileges for failure to make child support payments

This bill takes effect on April 1, 2007.

Part X – Redirect fees, fines, penalties and assessments of the Department of State’s Business and Licensing Services Account to the General Fund

This bill takes effect on April 1, 2007.

Part Y – Permanently authorize the Secretary of State to charge increased fees for expedited handling of documents

This bill takes effect April 1, 2007.

Part Z – Permanently extend the formula for distribution of the Federal Community Services Block Grant Program

This bill takes effect September 30, 2007.

Part AA – Amend and clarify reporting requirements in the Capital Program and Financing Plan (CPFP) for the Dedicated Highway and Bridge Trust Fund (DHBTF)

This bill takes effect immediately and shall apply to Financial Plans and Budget Bills for 2007-08 fiscal year and fiscal years thereafter.

Part BB – Permanently extend suspension of drivers’ licenses for certain drug related convictions to conform State penalties with Federal law

This bill takes effect on April 1, 2007.