Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
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Jan 06, 2010 |
referred to finance |
Nov 07, 2009 |
referred to finance |
Senate Bill S6275
2009-2010 Legislative Session
Implements savings adjustments to the state fiscal plan
download bill text pdfSponsored By
(D) Senate District
Archive: Last Bill Status - In Senate Committee Finance Committee
- Introduced
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- In Committee Assembly
- In Committee Senate
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- On Floor Calendar Assembly
- On Floor Calendar Senate
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- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
2009-S6275 (ACTIVE) - Details
- Current Committee:
- Senate Finance
- Law Section:
- Budget Bills
- Laws Affected:
- Amd §§1975 & 1977-a, Pub Auth L; amd Part PP §§2 & 12, Chap 56 of 2009; amd Civ Serv L, generally; amd §§5 & 99-c, add Art 17 §§250 - 252, St Fin L; amd §9.09, Pks & Rec L; amd Part D3 §6, Chap 62 of 2003; add §18, Chap 43 of 1922; amd §1617-a, Tax L; amd §19-0323, En Con L
2009-S6275 (ACTIVE) - Summary
Implements savings adjustments to the state fiscal plan; authorizes the commissioner of taxation and finance to administer an accounts receivable discount program with respect to certain overdue tax liabilities; relates to authorizing the battery park city authority to make contributions to the state treasury; relates to providing for the administration of certain funds and accounts related to the 2009-10 budget in relation to authorizing the state comptroller to transfer certain monies to the general fund
2009-S6275 (ACTIVE) - Sponsor Memo
BILL NUMBER: S6275 TITLE OF BILL : An act authorizing the commissioner of taxation and finance to administer an accounts receivable discount program with respect to certain overdue tax liabilities (Part A); to amend the public authorities law, in relation to authorizing the battery park city authority to make contributions to the state treasury (Part B); to amend chapter 56 of the laws of 2009 relating to providing for the administration of certain funds and accounts related to the 2009-10 budget, in relation to authorizing the state comptroller to transfer certain monies to the general fund (Part C); 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 D); to amend section 1 of part D3 of chapter 62 of the laws of 2003 constituting the Tobacco Settlement Financing Corporation Act, in relation to bonds of the corporation (Part E); to amend chapter 43 of the laws of 1922 relating to the development of the port of New York, in relation to authorizing a contribution to the state treasury (Part F); to amend the tax law, in relation to the hours of operation of video lottery gaming (Part G); to amend the environmental conservation law, in relation to the use of ultra low sulfur diesel fuel and best available technology by the state (Part H); to amend the state finance
law, in relation to establishing the "annual spending growth cap act" (Part I); and creating a legislative commission on governmental restructuring, and providing for the repeal of such provisions upon expiration thereof (Part J) PURPOSE OF THIS BILL : The purpose of this bill is to close the current fiscal year (SFY 2009-10) budget gap and to provide long term measures to address the structural budget deficit. SUMMARY OF PROVISIONS : PART A: TAX PENALTY FORGIVENESS PROGRAM Authorizes the Department of Taxation and Finance to institute an accounts receivable discount program from January to March 2010. This program would reduce the amount of interest and penalties on outstanding tax liabilities provided the taxpayer pay the outstanding liability in full. Outstanding liabilities eligible for this program are those assessed prior to January 1, 2007 and are those for which an assessment or final determination by the Tax Department has been issued. This measure would increase State revenues by $250 million in SFY 2009-10. PART B: BATTERY PARK CITY TRANSFER Authorizes the Battery Park City Authority to transfer $200 million to the General Fund of the state. In addition, this part would authorize the financing of any interest rate exchange agreement termination payments with bond proceeds. PART C: VARIOUS SWEEPS AND TRANSFERS Authorizes the transfer of funds from various accounts and public authorities of the State to the General Fund. This part will increase General Fund receipts by approximately $348 million in SFY 2009-10 and this part also includes an blanket authorization to sweep an additional $300 million in State fiscal year 2009-10. PART D: NYSHIP OPERATING AS A SELF-INSURED PLAN Authorizes NYSHIP to operate as a self-insured plan. This part will increase State revenue by approximately $5 million in SFY 2009-10. It is further estimated that this measure will save $30 million when fully annualized. Major elements of this proposal include: * This would be applicable for a variety of employee health benefits. * The State currently contracts with licensed insurance companies for various health benefits and pays all necessary risk charges associated with having insurance. As a result, the insurance carriers pay specialty taxes and insurance assessments which they then pass along to the State as charges. * NYSHIP already functions like a self-insured plan, therefore it is paying these excess fees and taxes for no real reason. Regardless of the premium paid, the State pays the actual billed costs of health benefits. As a result, insurance companies charge these high risk fees, but in actuality incur minimal risk because of what the State is required to pay. * Legislation would not require the State to be self-insured, it would simply give them the choice going forward. * If this was passed, the State would create a more competitive environment among the current insurers and would broaden the field of competition allowing third party administrators to bid on contracts. * Sources of savings will come from increased competition, maximizing cash flow, earning higher interest on reserves, achieving full savings from network provider discounts, reducing administrative expense charges, eliminating state premium taxes, and eliminating insurer risk charges. PART E: TOBACCO BOND REFINANCING Increases the cap by $700 million on the amount of bonds authorized to be issued by the Tobacco Settlement Corporation. It is estimated that an additional $500 in net bond proceeds may be realized based on current market conditions. PART F: PORT AUTHORITY TRANSFER Authorizes the transfer of $200 million from the Port Authority of New York and New Jersey to the State's General Fund. PART G: VLT EXPANDED HOURS Authorizes an expansion of the hours of operation of video lottery gaming as prescribed by the Division of the Lottery. This action may result in the expansion of hours as prescribed by the Division of Lottery. This measure may result in additional revenues to the State of $39 million in SFY 2009-10. PART H: DIESEL EMISSIONS REDUCTION ACT (DERA) AMENDMENT Exempts State vehicles, and vehicles owned by transit authorities, from having to undergo a diesel emissions retrofit, provided that such vehicles are within 3 years of retirement. The vehicles would be prohibited from being on the road after retirement. Savings would accrue to individual transit systems since large amounts of money would not be required to retrofit vehicles within three years of retirement. It is anticipated that the provisions of this legislation would save transit systems approximately $36 million in the current fiscal year. While there are no estimates for the savings to some of the smaller transit systems, the savings to the larger systems are described below: * Metropolitan Transportation Authority (MTA): $30,000,000 * Capital District Transportation Authority (CDTA): $1,750,000 * Central New York Regional Transportation Authority (CNYRTA): $300,000 * Rochester Genesee Regional Transportation Authority (RGRTA): $2,900,000 * Niagara Frontier Transportation Authority (NFTA): $850,000 PART I: STATE SPENDING CAP This legislation will cap the growth of state spending and tie it to the rate of inflation. Section one of this part establishes the short title for the "annual spending growth cap act." Section two of this part would amend the State Finance Law ("SFL") to add a new Article 17, establishing a state spending cap. * New SFL § 250 sets definitions for article 17. * New SFL § 251 establishes a spending cap, which limits the growth of state operating funds spending to no more than the average rate of inflation of the four previous calendar years. In addition, the section requires the governor to certify that the executive budget is consistent with the cap and the comptroller will provide, within five days of action by the Legislature upon the budget, a determination as to whether the state budget as enacted exceeds the annual spending growth cap. Finally, the section provides that if the Comptroller finds that the state budget as enacted exceeds the annual spending growth cap, the Governor and Legislature must take corrective action, such as a veto, reducing state agency spending within the control of the Executive or enacting amendments to achieve spending reductions, to ensure that funding is limited to the amount of the annual spending cap. * New SFL § 252 provides that upon a finding of an emergency by the Governor, he or she may declare an emergency by executive order. Based upon such declaration, the Governor may submit and the Legislature may authorize a budget containing a percentage increase in state operating fund spending over the prior fiscal year that exceeds the annual spending growth cap. Section 3 would make the act effective immediately. In 2010-11, it is expected that the cap would limit state Operating Funds spending to no greater than $81.9 billion, which reflects an increase of $1.987 billion or 2.49 percent from the prior year. This capped spending level would be $3.903 billion below the most recent current law estimates of state Operating Funds spending for 2010-11 ($85.861 billion, an increase of $5.891 billion or 7.4%) projected in the Division of the Budget's Mid-Year financial plan. PART J: COMMISSION ON GOVERNMENTAL RESTRUCTURING Establishes a Legislative Commission on Governmental Restructuring to investigate and provide recommendations on how best to restructure the State government to achieve savings for the taxpayers of the State of New York. Section one states the legislative intent and purpose for establishing the commission. It also outlines areas of inquiry. Section two establishes the twelve member commission and how it is comprised. This section also outlines the powers of the commission, and the expectations placed on the commission in terms of deadlines and reports. Section three states the effective date of this part. Consolidation and restructuring of State agencies, offices, bureaus, etc. are areas in which large savings targets may be able to be achieved. With the State in difficult financial times, it is important to investigate these areas to identify where and how such savings could be achieved. The commission will conduct this investigation and return its findings to the Legislature in an expedient manner. The commission is not compensated, only necessary and actual expenses will be funded by the State. EXISTING LAW : Part A amends the Tax Law, Part B amends the Public Authorities Law, Part C amends Chapter 56 of the Laws of 2009, Part D amends the Civil Service Law and Finance Law, Part E amends Section one Part D3 of Chapter 62 of the Laws of 2003, Part F amends Chapter 43 of the Laws of 1922, Part G amends the Tax Law, Part H amends the Environmental Conservation law, Part I amends the State Finance Law, and Part J does not amend existing law. JUSTIFICATION : State government spending has grown substantially in recent years especially in good economic times. Such growth has forced the State to take drastic actions to stabilize its finances when revenues decline dramatically during periods of economic difficulty. To end this pattern of boom and bust cycle budgeting, and impose greater fiscal discipline on state government, this legislation would enact a strict cap limiting the growth of State operating Funds spending. This legislation also creates a joint legislative commission to explore and report findings on regarding how the State delivers services. Other parts of the bill provide necessary gap closing measures for the current fiscal year. LEGISLATIVE HISTORY : New Bill. FISCAL IMPLICATIONS : This bill through savings, revenue, and other measures provides a net gain to the General Fund of approximately $1.878 billion in SFY 2009-10. This bill also directly supports local transit systems around the state through mandate relief. EFFECTIVE DATE : This act shall take effect immediately.
2009-S6275 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 6275 2009-2010 Regular Sessions I N S E N A T E November 7, 2009 ___________ Introduced by Sen. KRUGER -- read twice and ordered printed, and when printed to be committed to the Committee on Finance AN ACT authorizing the commissioner of taxation and finance to adminis- ter an accounts receivable discount program with respect to certain overdue tax liabilities (Part A); to amend the public authorities law, in relation to authorizing the battery park city authority to make contributions to the state treasury (Part B); to amend chapter 56 of the laws of 2009 relating to providing for the administration of certain funds and accounts related to the 2009-10 budget, in relation to authorizing the state comptroller to transfer certain monies to the general fund (Part C); 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 D); to amend section 1 of part D3 of chapter 62 of the laws of 2003 constituting the Tobacco Settlement Financing Corporation Act, in relation to bonds of the corporation (Part E); to amend chapter 43 of the laws of 1922 relating to the development of the port of New York, in relation to authorizing a contribution to the state treasury (Part F); to amend the tax law, in relation to the hours of operation of video lottery gaming (Part G); to amend the environmental conservation law, in relation to the use of ultra low sulfur diesel fuel and best available technology by the state (Part H); to amend the state finance law, in relation to establishing the "annual spending growth cap act" (Part I); and creat- ing a legislative commission on governmental restructuring, and providing for the repeal of such provisions upon expiration thereof (Part J) THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15038-02-9 S. 6275 2
Section 1. This act enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2009-2010 state fiscal year. Each component is wholly contained within a Part identified as Parts A through J. The effective date for each particular provision contained within such Part is set forth in the last section of such Part. Any provision in any section contained within a Part, includ- ing the effective date of the Part, which makes a reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Part in which it is found. Section three of this act sets forth the general effective date of this act. PART A Section 1. (a) Notwithstanding the provisions of any other law to the contrary, there is hereby established an accounts receivable discount program as described in this section, to be administered by the commis- sioner of taxation and finance, and to be effective for the period prescribed by such commissioner, for all eligible taxpayers as described in this section owing any tax, fee, or surcharge imposed or formerly imposed by, or authorized under, the tax law, and administered by the commissioner of taxation and finance. (b) For purposes of the accounts receivable discount program, an eligible taxpayer is an individual, partnership, estate, trust, corpo- ration, limited liability company, joint stock company, or any other company, trustee, receiver, assignee, referee, society, association, business or any other person as described in the tax law, who or which has a tax liability with regard to one or more taxes, fees or surcharges that meet the conditions described in this section. However, a taxpayer who or that has been convicted of crime under the tax law or the penal law, and who or that is subject to a court order to pay a tax liability as a result of that conviction, is not eligible to participate in this program. (c) For purposes of the accounts receivable discount program, an eligible tax liability is one that has become fixed and final, and for which an assessment or final determination was issued on or before December 31, 2006. An eligible tax liability shall not include an assessment or final determination that includes any of the following: (1) any fraud penalty imposed under the tax law; (2) a penalty imposed under section 11 of part N of chapter 61 of the laws of 2005; (3) a penalty imposed under subsection (e), (g), (p), (p-1), (r), (x), (y), (z), (aa) or (bb) of section 685 of the tax law; or (4) a penalty imposed under subsection (f), (k), (k-1), (l), (p), (q), (r), (s) or (t) of section 1085 of the tax law. (d) The amount due under the accounts receivable discount program for an eligible tax liability for which an assessment or final determination was issued after December 31, 2003 and on or before December 31, 2006 must include the underlying tax liability and fifty percent of the accrued interest and penalty (including the additional rate of interest prescribed under section 1145 of the tax law, referred to in this section as "interest penalty"). The amount due under this program for an eligible tax liability for which an assessment or final determination was issued on or before December 31, 2003 must include the underlying tax liability and twenty percent of the accrued interest and penalty (including interest penalty). S. 6275 3 (e) The commissioner of taxation and finance shall identify the assessments and final determinations with tax liabilities eligible for the accounts receivable discount program described in this section, compute the total amount of tax, interest, and penalty due under the accounts receivable discount program on each such assessment or final determination, and notify eligible taxpayers of the amount due under this program for each such assessment or final determination. The discount of a percentage of interest and penalty described in this section will not be granted to any taxpayer for any such assessment or final determination unless the taxpayer pays in full the amount due under this program for that assessment or final determination on or before the date prescribed by the commissioner. (f) Under the accounts receivable discount program, payment will be made by eligible taxpayers with eligible tax liabilities in the form and manner prescribed by the commissioner of taxation and finance. Upon payment in full by the date prescribed by the commissioner of taxation and finance of the amount due under the accounts receivable discount program for an eligible tax liability, the taxpayer's liability for that assessment or final determination will be deemed to be paid in full. Failure to pay the full amount due under this program by the date prescribed by the commissioner of taxation and finance will disqualify an eligible tax liability from receiving the discount of interest and penalty described in this section. (g) No refund will be granted or credit allowed with respect to any penalty or interest paid prior to the time the taxpayer participates in the accounts receivable discount program. (h) No refund will be granted or credit allowed with respect to any tax liability, including any applicable interest or penalty, paid under the accounts receivable discount program. (i) If an eligible taxpayer has entered into an installment payment agreement that applies to an eligible tax liability, the taxpayer may participate in the accounts receivable discount program with respect to that liability, if the taxpayer pays the amount due under the accounts receivable discount program in full by the date prescribed by the commissioner of taxation and finance. (j) On or before March 31, 2009, the commissioner of taxation and finance shall submit a report to the chairman of the assembly ways and means committee, the ranking minority member of the assembly ways and means committee, the chairman of the senate finance committee, the rank- ing minority member of the senate finance committee and the director of the division of the budget regarding the accounts receivable discount program established pursuant to this act. The report shall contain the following information as of the report cutoff date: (i) the number of cases by tax area in which the program was available; (ii) the amount of tax and interest and penalty due by tax area; (iii) the amount of penal- ty and interest penalty waived in all cases by tax area; (iv) the gross revenue collected under each tax and the year or other applicable period for or during which the liability was incurred; (v) an estimate of the amount of revenue received during the period of the accounts receivable discount program provided for herein which would have otherwise been received during another period; and (vi) an estimate of the net revenue generated from the accounts receivable discount program. S 2. This act shall take effect immediately. PART B S. 6275 4 Section 1. Subdivision 2 of section 1975 of the public authorities law, as added by section 1 of part AA of chapter 59 of the laws of 2009, is amended to read as follows: 2. Notwithstanding any provision of law to the contrary, the authority is hereby authorized to contribute [twenty] TWO HUNDRED million dollars to the state treasury to the credit of the general fund. S 2. Subdivision 1 of section 1977-a of the public authorities law is amended by adding a new paragraph (f) to read as follows: (F) FINANCING TERMINATION COSTS OF INTEREST RATE EXCHANGE AGREEMENTS. IN ADDITION TO THE AUTHORIZATIONS CONTAINED ELSEWHERE IN THIS SUBDIVI- SION THE AUTHORITY MAY BORROW MONEY BY ISSUING BONDS OR NOTES FOR THE PURPOSE OF PAYING COSTS OF TERMINATING ANY INTEREST RATE EXCHANGE AGREE- MENTS ENTERED INTO BY THE AUTHORITY PLUS A PRINCIPAL AMOUNT OF BONDS OR NOTES ISSUED (I) TO FUND ANY RELATED DEBT SERVICE RESERVE FUND, (II) TO PROVIDE CAPITALIZED INTEREST, AND (III) TO PROVIDE FOR FEES AND OTHER CHARGES AND EXPENSES INCLUDING ANY UNDERWRITERS' DISCOUNTS, RELATED TO THE ISSUANCE OF SUCH BONDS OR NOTES, ALL AS DETERMINED BY THE AUTHORITY, EXCLUDING BONDS AND NOTES ISSUED TO REFUND OUTSTANDING BONDS AND NOTES ISSUED PURSUANT TO THIS SECTION. S 3. This act shall take effect immediately. PART C Section 1. Section 2 of part PP of chapter 56 of the laws of 2009 entitled "Labor", relating to providing for the administration of certain funds and accounts related to the 2009-10 budget, is amended by adding a new subdivision 5 to read as follows: 5. $40,000,000 FROM THE GENERAL MISCELLANEOUS SPECIAL REVENUE FUND (339) DISABILITY BENEFITS FUND (B7) TO THE GENERAL FUND. S 2. Section 12 of part PP of chapter 56 of the laws of 2009 relating to providing for the administration of certain funds and accounts related to the 2009-10 budget, is amended to read as follows: S 12. Notwithstanding any law to the contrary, and in accordance with section 4 of the state finance law, the comptroller is hereby authorized and directed to transfer, at the request of the director of the budget, up to [$200] $500 million from the unencumbered balance of any special revenue fund or account, or combination of funds and accounts, to the general fund. The amounts transferred pursuant to this authorization shall be in addition to any other transfers expressly authorized in the 2009-10 budget. Transfers from federal funds, debt service funds, capi- tal projects funds, or the community projects fund are not permitted pursuant to this authorization. The director of the budget shall notify both houses of the legislature in writing prior to initiating transfers pursuant to this authorization. S 3. Notwithstanding any provision of law to the contrary, the dormi- tory authority of the state of New York is authorized and directed, upon the request of the director of the budget, to transfer $26,000,000 to the general fund on or before March 31, 2010. S 4. Notwithstanding any law to the contrary, the insurance department shall finance the annual expenses related to its activities and oper- ations through assessments upon those entities required to pay such assessments pursuant to section 332 of the insurance law. For state fiscal year 2009-10, the total value of the annual assessment will be equal to the total value of the department's enacted appropriations. In such instances where the total value of the annual industry assessment exceeds actual annual expenses of the department's operations and activ- S. 6275 5 ities, in accordance with section 4 of the state finance law, the comp- troller is hereby authorized and directed to transfer, at the request of the director of the budget, up to $3,025,000 from the unencumbered balance of the special revenue fund (339), insurance department account (B6) to the general fund on or before March 31, 2010. S 5. Notwithstanding any provision of law, rule or regulation to the contrary, the New York State energy research and development authority is authorized and directed to make a contribution to the state treasury to the credit of the general fund in the amount of $90,000,000 from proceeds collected by the authority from the auction or sale of carbon dioxide emission allowances allocated by the department of environmental conservation under the Regional Greenhouse Gas Initiative on or before March 31, 2010. If, in any fiscal year, such moneys retained by the authority from the auction or sale of carbon dioxide emission allowances allocated by the department of environmental conservation under the Regional Greenhouse Gas Initiative are deemed insufficient by the director of the division of the budget to meet actual and anticipated disbursements, the comp- troller shall at the direction of the director of the division of the budget, transfer from the general fund to the New York State energy research and development authority moneys sufficient to meet such disbursements. Such transfers shall be made only upon certification of need by the director of the division of the budget, with copies of such certification filed with the chairperson of the senate finance commit- tee, the chairperson of the assembly ways and means committee and the state comptroller. The aggregate amount of all transfers to the New York State energy research and development authority shall not exceed $90,000,000 in total. S 6. Notwithstanding any other provision of the law to the contrary, and in accordance with section 4 of the state finance law, the comp- troller is hereby authorized to transfer upon request of the director of the budget, $29,000,000 on or before March 31, 2010, from the city university special revenue fund (377), city university stabilization account (A1), to the general fund. S 7. Notwithstanding any other provision of law to the contrary, and in accordance with section 4 of the state finance law, the comptroller is hereby authorized to transfer upon request of the director of the budget, $160,000,000 from the Employee Health Insurance Fund (152) to the general fund. S 8. This act shall take effect immediately; provided that the amend- ments to sections 2 and 12 of part PP of chapter 56 of the laws of 2009 made by sections one and two of this act shall not affect the repeal of such sections and shall be deemed repealed therewith. PART D Section 1. The section heading and subdivision 1 of section 160 of the civil service law, as amended by chapter 329 of the laws of 1960, are amended to read as follows: Regulations governing the health [insurance] BENEFIT plan; advisory committee. 1. The president, subject to the provisions of this article, is hereby empowered to establish regulations relating to: (1) the eligibility of (a) active and (b) retired employees to partic- ipate in the health [insurance] BENEFIT plan authorized by this article, S. 6275 6 (2) the terms and conditions of the insurance AND/OR PLAN ADMINISTRA- TOR contract or contracts, as applied to (a) active employees and (b) retired employees, and (3) the purchase of such insurance AND/OR PLAN ADMINISTRATOR contract or contracts and the administration of such health [insurance] BENEFIT plan. The president shall adopt such further regulations as may be required for the effective administration of this article, including the right to require advance payments of any portion of the amount required to be paid by any participating employer as its share in connection with the operation of the health [insurance] BENEFIT plan hereunder. S 2. Subdivisions 1 and 3 of section 161 of the civil service law, as amended by chapter 329 of the laws of 1960, are amended to read as follows: 1. The president is hereby authorized and directed to establish a health [insurance] BENEFIT plan for state officers and employees and their dependents and officers and employees of the state colleges of agriculture, home economics, industrial labor relations and veterinary medicine, the state agricultural experiment station at Geneva, and any other institution or agency under the management and control of Cornell university as the representative of the board of trustees of the state university of New York, and the state college of ceramics under the management and control of Alfred university as the representative of the board of trustees of the state university of New York and their depen- dents which, subject to the conditions and limitations contained in this article, and in the regulations of the president, will provide for group hospitalization, surgical and medical insurance against the financial costs of hospitalization, surgery, medical treatment and care, and may include, among other things prescribed drugs, medicines, prosthetic appliances, hospital in-patient and out-patient service benefits and medical expense indemnity benefits. 3. The health [insurance] BENEFIT plan shall be designed by the presi- dent (1) to provide a reasonable relationship between the hospital, surgical and medical benefits to be included, and the expected distrib- ution of expenses of each such type to be incurred by the covered employees and dependents, and (2) to include reasonable controls, which may include deductible and coinsurance provisions applicable to some or all of the benefits, to reduce unnecessary utilization of the various hospital, surgical and medical services to be provided and to provide reasonable assurance of stability in future years of the plan, and (3) to provide benefits on a non-discriminatory basis to the extent possi- ble, to active members throughout the state, wherever located. S 3. The section heading and subdivisions 1 and 2 of section 162 of the civil service law, the section heading and subdivision 2 as amended by chapter 329 of the laws of 1960 and subdivision 1 as amended by chap- ter 805 of the laws of 1984, are amended to read as follows: Contract for health [insurance] BENEFITS. 1. The president is hereby authorized and directed to purchase a contract or contracts to provide the benefits under the plan of health [insurance] benefits determined upon in accordance with the provisions of this article. Such contract or contracts shall be purchased from one or more corporations licensed to transact accident and health insurance business in this state or subject to article forty-three of the insurance law. ALTERNATIVELY, THE PRESI- DENT MAY PROVIDE HEALTH BENEFITS DIRECTLY TO PLAN PARTICIPANTS, IN WHICH CASE THE PRESIDENT IS HEREBY AUTHORIZED TO PURCHASE A CONTRACT OR CONTRACTS WITH ONE OR MORE FIRMS QUALIFIED TO ADMINISTER, ON NEW YORK S. 6275 7 STATE HEALTH BENEFIT PLAN'S BEHALF, THE PLAN OF BENEFITS REQUIRED UNDER THIS ARTICLE. ANY HEALTH INSURANCE COVERAGE MANDATED BY LAW APPLICABLE TO CONTRACTS FOR HEALTH INSURANCE ENTERED INTO UNDER THIS SECTION SHALL ALSO APPLY TO THE PROVISION OF ANY BENEFITS PURSUANT TO THIS SUBDIVI- SION. All of the benefits to be provided under this article may be included in one or more similar contracts, or the benefits may be clas- sified into different types with each type included under one or more similar contracts issued by the same or different companies. 2. A reasonable time before entering into any insurance contract OR CONTRACT WITH AN ADMINISTRATOR OR ADMINISTRATORS hereunder, the presi- dent shall invite proposals from such qualified insurers OR ADMINISTRA- TORS as in his OR HER opinion would desire to accept any part of the insurance coverage OR ADMINISTRATIVE SERVICES authorized by this arti- cle. S 4. Subdivisions 1, 2, 5, 7 and 8 of section 163 of the civil service law, subdivisions 1 and 5 as amended by chapter 329 of the laws of 1960, subdivision 2 as amended by chapter 617 of the laws of 1967, subdivision 7 as amended by chapter 198 of the laws of 1966 and subdivision 8 as added by chapter 394 of the laws of 1984, are amended to read as follows: 1. All persons in the service of the state, whether elected, appointed or employed, who elect to participate in such health [insurance] BENEFIT plan shall be eligible to participate therein, provided, however, that the president may adopt such regulations as he OR SHE may deem appropri- ate excluding temporary, part time or intermittent employment. 2. The contract or contracts shall provide for health [insurance] BENEFITS for retired employees of the state and of the state colleges of agriculture, home economics, industrial labor relations and veterinary medicine, the state agricultural experiment station at Geneva, and any other institution or agency under the management and control of Cornell university as the representative of the board of trustees of the state university of New York, and the state college of ceramics under the management and control of Alfred university as the representative of the board of trustees of the state university of New York, and their spouses and dependent children as defined by the regulations of the president, on such terms as the president may deem appropriate, and the president may authorize the inclusion in the plan of the employees and retired employees of public authorities, public benefit corporations, school districts, special districts, district corporations, municipal corpo- rations excluding active employees and retired employees of cities having a population of one million or more inhabitants whose compen- sation is or was before retirement paid out of the city treasury, or other appropriate agencies, subdivisions or quasi-public organizations of the state and their spouses and dependent children as defined by the regulations of the president. Any such corporation, district, agency or organization electing to participate in the plan shall be required to pay its proportionate share of the expenses of administration of the plan in such amounts and at such times as determined and fixed by the president. All amounts payable for such expenses of administration shall be paid to the commissioner of taxation and finance and shall be applied to the reimbursement of funds previously advanced for such purposes. Neither the state nor any other participant in the plan shall be charged with the particular experience attributable to the employees of the participant, and all dividends or retroactive rate credits shall be distributed pro-rata based upon the number of employees of such participant covered by the plan. S. 6275 8 5. The chief fiscal officer of any such participating employer shall be authorized to deduct from the wages or salary paid to its employees who are participants in such health [insurance] BENEFIT plan the sums required to be paid by them under such plan. Each such participating employer is authorized to appropriate such sums as are required to be paid by it as its share in connection with the operation of such plan. 7. For purposes of eligibility for participation in the health [insur- ance] BENEFIT plan no person shall be deemed to be a state officer or employee or to be in the service of the state unless his salary or compensation is paid directly by the state, and no person shall be deemed to be a retired officer or employee of the state unless his sala- ry or compensation immediately preceding his retirement was paid direct- ly by the state; provided, however, that all active and retired justices, judges, officers and employees of the supreme court, surro- gate's court, county court, family court, civil court of the city of New York, criminal court of the city of New York and district court in any county, officers and employees of the office of probation for the courts of New York city shall be eligible for participation in the health [insurance] BENEFIT plan whether or not their salaries are paid or before retirement were paid directly by the state. 8. Notwithstanding any other law, rule or regulation to the contrary, where the state and an employee organization representing state officers and employees who are in positions which are in the collective negotiat- ing unit established by chapter four hundred three of the laws of nine- teen hundred eighty-three enter into a collectively negotiated agreement pursuant to article fourteen of this chapter providing that officers and employees who hold positions in such unit on or after April first, nine- teen hundred eighty-four and who immediately upon termination from such position are eligible to receive a retirement benefit from either the New York state or New York city retirement systems shall continue to be eligible to participate in the employee benefit fund established by section two hundred six-a of the state finance law, such officers and employees upon retirement shall continue to participate in and receive the benefits of such fund as provided in such collectively negotiated agreement and shall not be eligible to receive and shall not receive from the statewide health [insurance] BENEFIT plan established pursuant to this article coverage for benefits covered by such employee benefit fund. S 4-a. Section 163-a of the civil service law, as added by chapter 302 of the laws of 1985, is amended to read as follows: S 163-a. Health insurance adjustment. 1. For the purposes of this section, the term "supplementary plan" shall mean a health [insurance] BENEFIT plan which provides an adjustment to the deductible or co-insu- rance liability or to the benefits provided by the statewide health [insurance] BENEFIT plan purchased pursuant to section one hundred sixty-two of this article. 2. The president may require the insurer of a supplementary plan to the statewide health [insurance] BENEFIT plan, provided as a result of a collectively negotiated agreement pursuant to article fourteen of this chapter, to make a comparable supplementary plan available to partic- ipating employers as of the implementation date of the state employees' supplementary plan. The comparable supplementary plan shall be experi- ence rated as to those participating employers electing it, with the costs thereof allocated equitably among them. 3. Every participating employer which, on or before July first, nine- teen hundred eighty-five, entered into a collectively negotiated agree- S. 6275 9 ment pursuant to article fourteen of this chapter with employee organ- izations representing its employees to provide the statewide health [insurance] BENEFIT plan shall provide such comparable supplementary plan on the date established by the president until the expiration of such negotiated agreement. S 5. Section 165 of the civil service law, as amended by chapter 810 of the laws of 1964, subdivision 2 as amended by chapter 608 of the laws of 1977, is amended to read as follows: S 165. Termination of active employment. 1. The health [insurance] BENEFIT coverage of any employee and his OR HER dependents, if any, shall cease upon the discontinuance of his OR HER term of office or employment, subject to regulations which may be prescribed by the presi- dent for extension of coverage and for conversion to an individual contract providing for such of the benefits provided under this article as may be provided under such individual contracts, under terms approved by the president, the total cost of any such contract to be borne by the employee. 2. In the event of death of an employee having coverage at the time of death for himself OR HERSELF and his OR HER dependents, and where the circumstances of death are such that beneficiaries or dependents of such deceased employee are entitled to an accidental death benefit payable by a retirement system or pension plan administered by the state or a civil division thereof on account of death resulting from an accident sustained in the performance of his OR HER duties or to death benefits provided for under the [workmen's] WORKERS' compensation law, the unre- married spouse of such employee covered at the time of his OR HER death and his OR HER covered dependents, for so long as they would otherwise qualify as dependents eligible for coverage under the regulations of the president, shall be eligible to continue full coverage under the health [insurance] BENEFIT plan upon payment at intervals determined by the president of the full cost of such coverage; provided, however, that the state shall pay and any participating employer may elect to pay the full cost of such coverage, except that in the case of those enrolled in an optional benefit plan, the employer shall contribute not more than the same dollar amount which would be paid if such unremarried spouse and dependents were enrolled in the basic statewide health [insurance] BENE- FIT plan. The president shall adopt such regulations as may be required to carry out the provisions of this subdivision which shall include, but need not be limited to, provisions for filing application for continued coverage, including reasonable time limits therefor, and provisions for continued coverage of spouse and dependents pending determination of an application for accidental death benefits from a retirement system or pension plan administered by the state or a civil division thereof or pending determination of a claim for death benefits under the [work- men's] WORKERS' compensation law. S 6. Section 165-a of the civil service law, as amended by chapter 467 of the laws of 1991, the closing paragraph as added by chapter 105 of the laws of 2005, is amended to read as follows: S 165-a. Continuation of state health [insurance] BENEFIT plans for survivors of employees of the state and/or of a political subdivision or of a public authority. Notwithstanding any other provision of law to the contrary, the president shall permit the unremarried spouse and the dependents, otherwise qualified as eligible for coverage under regu- lations of the president, of a person who was an employee of the state and/or of a political subdivision thereof or of a public authority for not less than ten years, provided however, that the ten-year service S. 6275 10 requirement shall not apply to such employees on active military duty in connection with the Persian Gulf conflict who die on or after August second, nineteen hundred ninety while in the Persian Gulf combat zone or while performing such military duties, who had been a participant in any of the state health [insurance] BENEFIT plans, to continue under the coverage which such deceased employee had in effect at the time of death, upon the payment at intervals determined by the president of the full cost of such coverage, provided, however, that the unremarried spouse of an active employee of the State who died on or after April first, nineteen hundred seventy-five and before April first, nineteen hundred seventy-nine who timely elected to continue dependent coverage, or such unremarried spouse who timely elected individual coverage shall continue to pay at intervals determined by the president one-quarter of the full cost of dependent coverage and provided further, that, with regard to employees of the State, where and to the extent that an agree- ment pursuant to article fourteen of this chapter so provides, or where the director of employee relations, with respect to employees of the State who are not included within a negotiating unit so recognized or certified pursuant to article fourteen of this chapter whom the director of employee relations determines should be declared eligible for the continuation of health [insurance] BENEFIT plans for the survivors of such employees of the State, the president shall adopt regulations providing for the continuation of such health [insurance] BENEFIT OR BENEFITS by the unremarried spouse of an active employee of the State who died on or after April first, nineteen hundred seventy-nine who elects to continue dependent coverage, or such unremarried spouse who elects individual coverage, and upon such election shall pay at inter- vals determined by the president one-quarter of the full cost of depend- ent coverage and, provided further with respect to enrolled employees of a political subdivision or public authority in a negotiating unit recog- nized or certified pursuant to article fourteen of this chapter, where an agreement negotiated pursuant to said article so provides, and with respect to enrolled employees of a political subdivision or public authority not included within a negotiating unit so recognized or certi- fied, at the discretion of the appropriate political subdivision or public authority, the unremarried spouse of an active employee of the political subdivision or of the public authority who died on or after April first, nineteen hundred seventy-five, may elect to continue dependent coverage or such unremarried spouse may elect individual coverage and upon such election shall pay at intervals determined by the president one-quarter of the full cost of dependent coverage. The president shall adopt such regulations as may be required to carry out the provisions of this subdivision which shall include, but need not be limited to, provisions for filing application for continued coverage. Notwithstanding any law to the contrary, the survivors of any employee subject to this section shall be entitled to the health [insurance] benefits granted pursuant to this section, provided that such employee died while on active duty other than for training purposes, pursuant to Title 10 of the United States Code, with the armed forces of the United States, and such member died on such active duty on or after the effec- tive date of [the] chapter ONE HUNDRED FIVE of the laws of two thousand five [which added this paragraph] as a result of injuries, disease or other medical condition sustained or contracted in such active duty with the armed forces of the United States. S 7. Paragraph (a) of subdivision 1 and subdivisions 2, 4 and 5 of section 167 of the civil service law, paragraph (a) of subdivision 1 as S. 6275 11 amended by chapter 582 of the laws of 1988, subdivision 2 as amended by chapter 534 of the laws of 1998, subdivision 4 as amended by chapter 407 of the laws of 1970 and subdivision 5 as amended by chapter 617 of the laws of 1967, are amended to read as follows: (a) The full cost of premium or subscription charges for the coverage of retired state employees who are enrolled in the statewide and the supplementary health [insurance] BENEFIT plans established pursuant to this article and who retired prior to January first, nineteen hundred eighty-three shall be paid by the state. Nine-tenths of the cost of premium or subscription charges for the coverage of state employees and retired state employees retiring on or after January first, nineteen hundred eighty-three who are enrolled in the statewide and supplementary health [insurance] BENEFIT plans shall be paid by the state. Three- quarters of the cost of premium or subscription charges for the coverage of dependents of such state employees and retired state employees shall be paid by the state. Except as provided in paragraph (b) of this subdi- vision, the state shall contribute toward the premium or subscription charges for the coverage of each state employee or retired state employ- ee who is enrolled in an optional benefit plan and for the dependents of such state employee or retired state employee the same dollar amount which would be paid by the state for the premium or subscription charges for the coverage of such state employee or retired state employee and his or her dependents if he or she were enrolled in the statewide and the supplementary health [insurance] BENEFIT plans, but not in excess of the premium or subscription charges for the coverage of such state employee or retired state employee and his or her dependents under such optional benefit plan. For purposes of this subdivision, employees of the state colleges of agriculture, home economics, industrial labor relations, and veterinary medicine, the state agricultural experiment station at Geneva, and any other institution or agency under the manage- ment and control of Cornell university as the representative of the board of trustees of the state university of New York, and employees of the state college of ceramics under the management and control of Alfred university as the representative of the board of trustees of the state university of New York, shall be deemed to be state employees whose salaries or compensation are paid directly by the state. 2. Each participating employer shall be required to pay not less than fifty percentum of the cost of premium or subscription charges for the coverage of its employees and retired employees who are enrolled in the statewide only or the statewide and comparable supplementary health [insurance] BENEFIT plans established pursuant to this article. Such employer shall be required to pay not less than thirty-five percentum of the cost of premium or subscription charges for the coverage of depen- dents of such employees and retired employees. Such employer shall contribute toward the premium or subscription charges for the coverage of each employee or retired employee who is enrolled in an optional benefit plan and for the dependents of such employee or retired employee the same dollar amount which would be paid by such employer for the premium or subscription charges for the coverage of such employee or retired employee and his or her dependents if he or she were enrolled in the statewide health [insurance] BENEFIT plan, but not in excess of the premium or subscription charges for the coverage of such employee or retired employee and his or her dependents under such optional benefit plan. Such employer shall not be required to pay the cost of premium or subscription charges for the coverage of unpaid elected officials, or unpaid board members of a public authority, or their dependents, S. 6275 12 provided, however that no unpaid board member of a public authority shall be eligible to participate in such [insurance] BENEFIT plan until he or she has served in such position for at least six months. Subject to such regulations as the president may prescribe, any participating employer may elect to pay higher rates of contribution for the coverage of employees, retired employees and their dependents; provided, however, that if a participating employer elects to pay a higher or lower rate of contribution for its retired employees or their dependents, or both, than that paid by the state for its retired employees or their depen- dents, or both, amounts withheld from the retirement allowances of such retired employees for their share of premium or subscription charges, if any, shall, if the president so requires, be paid to such participating employer which shall pay into the health insurance fund the full cost of premium or subscription charges for the coverage of such retired employ- ees and their dependents. Such election shall be exercised by the adoption of a resolution by its governing body which, if required by law to be approved by any other body or officer, shall have been so approved. 4. Upon the retirement, on or after July first, nineteen hundred sixty-five, of a state employee whose salary or compensation is paid directly by the state, who is subject to a plan established by law, rule, regulation, written order or written policy which provides for the regular earning and accumulation of sick leave, and who is eligible to continue coverage under the health [insurance] BENEFIT plan after retirement, the department [of civil service] shall determine, based on the employee's age at the time of retirement, the actuarial equivalent in monthly installments for the remaining life expectancy of such retired employee, of the dollar value of the earned and accumulated but unused sick leave standing to his OR HER credit at the time of retire- ment, without interest. Such dollar value shall be based on the employ- ee's salary at the time of retirement. In addition to regular employer contributions, contributions in the amount of such monthly installments shall be paid from the state's appropriation to the health insurance fund and applied towards the charges for health [insurance] BENEFITS on account of such retired employee and his OR HER dependents, to the extent necessary to pay such charges. The remaining amount, if any, necessary to pay such charges shall be contributed by such retired employee. On or after October first, nineteen hundred seventy when such dollar value of such sick leave amounts to less than one hundred dollars for a particular retired employee, in lieu of contributions which would otherwise be required from such retired employee, additional contrib- utions shall be paid for the state's appropriation to the health insur- ance fund and applied towards the charges for health [insurance] BENE- FITS on account of such retired employee and his OR HER dependents until the sum of such additional contributions equals such dollar value of such sick leave. The remaining amount, if any, necessary to pay such charges shall be contributed by such retired employee. For purposes of this subdivision, employees of the state colleges of agriculture, home economics, industrial labor relations, and veterinary medicine, the state agricultural experiment station at Geneva, and any other institu- tion or agency under the management and control of Cornell university as the representative of the board of trustees of the state university of New York, and employees of the state college of ceramics under the management and control of Alfred university as the representative of the board of trustees of the state university of New York, shall be deemed S. 6275 13 to be state employees whose salaries or compensation is paid directly by the state. 5. Subject to such regulations as the president may prescribe, any participating employer may elect to make additional contributions towards charges for health [insurance] BENEFIT coverage on account of its retired employees and their dependents, based on the dollar value of their sick leave accumulated but unused at the time of retirement. Such election shall apply to employees in the service of the participating employer who retire on or after the effective date of such election, who are subject to a plan established by law, rule, regulation, written order or written policy which provides for the regular earning and accu- mulation of sick leave, and who are eligible to continue coverage under the health [insurance] BENEFIT plan after retirement. The participating employer shall certify to the department [of civil service] the dollar value of earned and accumulated but unused sick leave standing to the credit of an employee at the time of his OR HER retirement. Additional contributions shall be paid by such participating employer and applied towards charges for health [insurance] BENEFITS on account of its retired employees and their dependents in the same manner as provided in subdivision four of this section with respect to retired state employees and their dependents. S 8. Section 167-a of the civil service law, as added by chapter 602 of the laws of 1966, is amended to read as follows: S 167-a. Reimbursement for medicare premium charges. Upon exclusion from the coverage of the health [insurance] BENEFIT plan of supplementa- ry medical insurance benefits for which an active or retired employee or a dependent covered by the health [insurance] BENEFIT plan is or would be eligible under the federal old-age, survivors and disability insur- ance program, an amount equal to the premium charge for such supplemen- tary medical insurance benefits for such active or retired employee and his OR HER dependents, if any, shall be paid monthly or at other inter- vals to such active or retired employee from the health insurance fund. Where appropriate, such amount may be deducted from contributions paya- ble by the employee or retired employee; or where appropriate in the case of a retired employee receiving a retirement allowance, such amount may be included with payments of his OR HER retirement allowance. Employer contributions to the health insurance fund shall be adjusted as necessary to provide for such payments. S 9. Section 168 of the civil service law, as amended by chapter 329 of the laws of 1960, subdivisions 1 and 2 as amended by chapter 585 of the laws of 1968 and subdivision 3 as amended by chapter 198 of the laws of 1966, is amended to read as follows: S 168. Assessment of certain costs. 1. If the salary or compensation of any officers and employees of the state is paid from a special or administrative fund or funds, other than the state purposes fund or the local assistance fund of the general fund of the state or the capital construction fund or an income fund of the state university or the mental hygiene services fund, such fund or funds shall be charged, and there shall be paid therefrom as [hereinafter] provided IN THIS SECTION the employer's share of the premium for the coverage of such officers and employees under the health [insurance] BENEFIT plan. If the amounts appropriated or allocable from such special or administrative fund or funds are insufficient for such purpose, the director of the budget is hereby authorized to allocate such additional sums from such fund or funds as may be necessary therefor; provided, however, that no transfer shall be made between two or more of such funds. Such amounts shall be S. 6275 14 paid, at such times as shall be required by the president, to the commissioner of taxation and finance and shall be credited to the health insurance fund to pay, or reimburse the health insurance fund for the payment of, the employer's share of the premium for coverage of such officers and employees under the health [insurance] BENEFIT plan. 2. If the salary or compensation of any officers and employees of the state is payable from a special or administrative fund or funds, other than the state purposes fund or the local assistance fund of the general fund of the state or the capital construction fund or an income fund of the state university or the mental hygiene services fund, a propor- tionate share of the expenses of administration of the health [insur- ance] BENEFIT plan, on account of coverage of such officers and employ- ees, shall be payable from such fund or funds. If the amounts appropriated or allocable from such special or administrative fund or funds are insufficient for such purpose, the director of the budget is hereby authorized to allocate such additional sums from such [funds] FUND or funds as may be necessary therefor; provided, however, that no transfer shall be made between two or more of such funds. The propor- tionate share of the expenses of administration of the health [insur- ance] BENEFIT plan chargeable pursuant to this subdivision to any special or administrative fund shall be determined by the president and shall be payable at such times as may be fixed by him OR HER. Such sums shall be payable to the commissioner of taxation and finance and shall be applied to the reimbursement of funds previously advanced for the expenses of administration of the health [insurance] BENEFIT plan. 3. (a) If the salary or compensation of any justices, judges, officers and employees of the supreme court, surrogate's court, county court, family court, civil court of the city of New York, criminal court of the city of New York and district court in any county, officers and employ- ees of the office of probation for the courts of New York city is not paid in whole or in part from the treasury of the state, but is paid directly from the treasury of a civil division, such civil division shall be required to pay the employer's share of the premium charges for the coverage of such justices, judges, officers and employees under the state health [insurance] BENEFIT plan. The appropriate fiscal officer of such civil division shall deduct from the salary or wages paid to such justices, judges, officers and employees the sums required to be paid by them under such plan. Such deductions and the corresponding employer's share of premium charges shall be paid, at such times as required by the president, to the commissioner of taxation and finance and shall be credited to the health insurance fund. (b) If the salary or compensation of any retired justices, judges, officers and employees of the supreme court, surrogate's court, county court, family court, civil court of the city of New York, criminal court of the city of New York and district court in any county, officers and employees of the office of probation for the courts of New York city prior to retirement was not paid in whole or in part from the treasury of the state but was paid directly from the treasury of a civil divi- sion, such civil division shall be required to pay the employer's share of the premium charges for the coverage of such retired justices, judg- es, officers and employees under the state health [insurance] BENEFIT plan. If such retired justices, judges, officers and employees are receiving retirement allowances from a pension or retirement plan or system administered by such civil division, the amounts required to be paid by such retired justices, judges, officers and employees as their share of premium charges shall be deducted from their retirement allow- S. 6275 15 ances. Such deductions and the employer's share of premium charges shall be paid, at such times as required by the president, to the commissioner of taxation and finance and shall be credited to the health insurance fund. (c) Any civil division required by this subdivision to pay the employ- er's share of the premium charges for the coverage of active or retired justices, judges, officers and employees of the supreme court, surro- gate's court, county court, family court, civil court of the city of New York, criminal court of the city of New York and district court in any county, officers and employees of the office of probation for the courts of New York city shall also be assessed and required to pay a propor- tionate share of the expenses of administration of the health [insur- ance] BENEFIT plan in such amounts and at such times as determined by the president. Such sums shall be payable to the commissioner of taxa- tion and finance and shall be applied to the reimbursement of funds previously advanced for the expenses of administration of the health [insurance] BENEFIT plan. S 10. Subdivisions 1 and 3 of section 161-a of the civil service law, subdivision 1 as amended by chapter 302 of the laws of 1985 and subdivi- sion 3 as added by chapter 307 of the laws of 1979, are amended to read as follows: 1. Where, and to the extent that, an agreement between the state and an employee organization entered into pursuant to article fourteen of this chapter provides for health [insurance] benefits, the president, after receipt of written directions from the director of employee relations, shall implement the provisions of such agreement consistent with the terms thereof and to the extent necessary shall adopt regu- lations providing for the benefits to be thereunder provided. The presi- dent, with the approval of the director of the budget, may extend such benefits, in whole or in part, to employees not subject to the provisions of such agreement. 3. There is hereby created a council on employee health insurance to supervise the administration of changes to the health [insurance] BENE- FIT plan negotiated in collective negotiations and to provide continuing policy direction to insurance plans administered by the state the provisions of any other law to the contrary notwithstanding. The council shall consist of the president [of the civil service commission], the director of the division of the budget, and the director of employee relations. S 11. Paragraph (a) of subdivision 1 of section 11 of the civil service law, as amended by chapter 299 of the laws of 1968, is amended to read as follows: (a) The term "expenses of administration" means the total cost of administration of the department [of civil service], excluding costs of providing services to municipalities and costs of administration of the health [insurance] BENEFIT plan, and excluding costs of special programs or activities of the department as may be determined by the president, subject to approval of the director of the budget, which do not serve generally all state departments and agencies under the jurisdiction of the department; S 12. Section 158 of the civil service law, as added by chapter 1047 of the laws of 1973, subdivision 1 as amended by section 4 of part C of chapter 56 of the laws of 2006, is amended to read as follows: S 158. Group term life insurance plan and group accident and health [insurance] BENEFIT plan. 1. The president, subject to the provisions of this section, is hereby empowered to establish regulations relating to, S. 6275 16 and to enter into and administer contracts providing for, a group term life insurance plan, and a group accident and health [insurance] BENEFIT plan on behalf of legislators, employees of the legislature hired on an annual basis, judges and justices of the unified court system, and state employees and retired employees who, for the purposes of article four- teen of this chapter, have been for a period of time prescribed by the regulations and, except for such retirees, continue to be in positions designated as managerial or confidential positions. The president may authorize the inclusion in the plan of such employees and retired employees of other governments or public employers as defined in subdi- vision [seven] SIX of section two hundred one of this chapter. The pres- ident may adopt whatever other regulations which may be necessary to fulfill the intentions of this section. No regulation shall be adopted, repealed or amended, and no other action taken with respect to such employees affecting the amount of, or eligibility for, benefits or rates of contribution under this section without the approval of the director of employee relations. The full costs of any insurance program or programs established pursu- ant to this subdivision, excluding administrative costs, shall be borne by insureds and retirees. Any interest earned by the moneys in the life insurance fund shall be added to such fund, become a part of such fund, be used for the purpose of such fund, and be available without fiscal year limitation. 2. The regulations of the president authorized by this section shall provide that the entire cost of premiums or subscription charges for coverage under the insurance plans established pursuant to such regu- lations shall be borne by the employees electing such coverage. Such regulations may provide for the allocation of any administrative expenses, other than those of the insurer, among employers or employees or retired employees participating in such coverage. S 13. Subdivision 1 of section 174 of the civil service law, as added by chapter 585 of the laws of 1998, is amended to read as follows: 1. All persons who, as of the effective date of this article, are or shall become eligible to participate in the state health [insurance] BENEFIT plan established under article eleven of this chapter, shall be eligible to participate in the long term care insurance plan established under this article. The president shall adopt regulations prescribing the conditions under which an eligible individual may elect to partic- ipate in the long term care insurance plan. S 14. The article heading of article 11 of the civil service law, as added by chapter 461 of the laws of 1956 and as renumbered by chapter 790 of the laws of 1958, is amended to read as follows: HEALTH [INSURANCE] BENEFITS FOR STATE AND RETIRED STATE EMPLOYEES S 15. Subparagraph (i) of paragraph f of subdivision 2 of section 5 of the state finance law, as added by section 1 of part E of chapter 56 of the laws of 2000, is amended to read as follows: (i) in the unclassified service of the state and, notwithstanding any other provision of law to the contrary, shall be designated managerial and, as such, eligible for benefits provided by subdivision two of section eleven and subdivision (a) of section twelve of chapter four hundred sixty of the laws of nineteen hundred eighty-two, as amended; section one hundred fifty-eight of the civil service law; eligible to participate in the state deferred compensation plan, the New York state and local employees' retirement system; the health [insurance] BENEFIT plan for state employees; and subject to coverage under sections seven- teen and eighteen of the public officers law, or S. 6275 17 S 16. Subdivisions 1 and 3 of section 99-c of the state finance law, as added by chapter 55 of the laws of 1977, are amended to read as follows: 1. In the event a county, city, town, village or school district which has elected to receive distribution or distributions from the health insurance reserve receipts fund, pursuant to an agreement between such municipality or school district and the state and which has elected to terminate its contractual agreement for health [insurance] BENEFITS with the New York state department of civil service, or if called upon by the New York state department of civil service, pursuant to such agreement, to return such distribution within the time period and under the condi- tions specified in such agreement, shall be in default of its obligation to repay such distribution, the allotment, apportionment, and payment of local assistance aid, education aid or other state aid as appropriate and as determined by the comptroller shall be withheld by the state upon the following terms and conditions. 3. Notwithstanding any inconsistent provisions of law, the comptroller shall establish a fund, to be called the health insurance reserve receipts fund, to receive transfers of funds from the health insurance carriers of the New York state employee health [insurance] BENEFIT plan, pursuant to contractual agreements between such carriers and the New York state department of civil service and/or from the health insurance fund. Moneys returned by the municipalities and school districts or withheld from state aid by the comptroller pursuant to provisions governing termination of the contractual agreements shall be deposited in this fund. Disbursements from the health insurance reserve receipts fund shall be for the purpose of returning to participating governments and school districts the appropriate share of moneys remitted by such health insurance carriers and/or for the purpose of remitting to the carriers any moneys due them as a result of termination of the state's contract with the carriers or termination of agreements between the state and municipalities and school districts and/or for the purpose of transferring funds to the health insurance fund. Disbursements from such fund shall be made pursuant to the procedures for authorization of expenditures contained in article [XI] ELEVEN of the civil service law upon the issuance of a certificate of approval of availability by the director of the budget and subject to audit and warrant of the comp- troller. S 17. Subdivision 2 of section 9.09 of the parks, recreation and historic preservation law is amended to read as follows: 2. For the purposes of eligibility for participation in the state health [insurance] BENEFIT plan under article eleven of the civil service law and for survivor's benefits for active and retired state employees [as provided by sections one hundred fifty-four and one hundred fifty-five of the civil service law], employees of the commis- sion, to the extent to which the compensation paid for their services is derived from funds appropriated by this state, shall be deemed to be employees of this state and qualified for such participation and bene- fits. For the purpose of determining their rights under the [workmen's] WORKERS' compensation law of this state, employees of the commission employed wholly or partly in this state shall be deemed to be employees of this state provided, however, that the amount of any payment made under such compensation law to an employee of the commission employed only partly in this state shall be only in such proportion as the amount of his OR HER salary paid by the state of New York shall bear to his OR HER total salary. S. 6275 18 S 18. This act shall take effect immediately. PART E Section 1. Paragraph (i) of subdivision 1 of section 6 of section 1 of part D3 of chapter 62 of the laws of 2003 constituting the tobacco settlement financing corporation act is amended to read as follows: (i) The corporation shall have power and is hereby authorized from time to time to issue its bonds in an aggregate principal amount not exceeding four billion, [two] NINE hundred million dollars [($4,200,000,000)] ($4,900,000,000) plus the amount of any financing costs, to provide sufficient funds for achieving its corporate purpose, consisting of the purchase of all or a portion of the state's share pursuant to section four of this act and the payment or provision for financing costs. The foregoing limitation shall not apply to bonds issued to refund bonds. Provided, however, that no bonds may be issued pursuant to the authority and power granted by this section, except an issue of bonds in an amount not to exceed seven hundred million dollars ($700,000,000) plus the amount of any applicable financing costs, until the state comptroller shall determine that legislative passage of the budget has occurred for the current state fiscal year in accordance with the provisions of subdivision 3 of section 5 of the legislative law. Provided, further, no bonds, other than refunding bonds, shall be issued pursuant to such authority and power on or after [July 1, 2004] APRIL 1, 2011. S 2. This act shall take effect immediately. PART F Section 1. Chapter 43 of the laws of 1922 relating to the development of the port of New York is amended by adding a new section 18 to read as follows: S 18. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE PORT AUTHORITY IS HEREBY AUTHORIZED TO CONTRIBUTE TWO HUNDRED MILLION DOLLARS TO THE STATE TREASURY TO THE CREDIT OF THE GENERAL FUND. S 2. This act shall take effect upon the enactment into law by the state of New Jersey of legislation having an identical effect; but if the state of New Jersey shall have already enacted such legislation, then this act shall take effect immediately and provided that the state of New Jersey shall notify the legislative bill drafting the commission upon the occurrence of the enactment of the provisions provided for in this act in order that the commission may maintain an accurate and time- ly effective data base of the official text of the laws of the state of New York in furtherance of effecting the provisions of section 44 of the legislative law and section 70-b of the public officers law. PART G Section 1. Subdivision b of section 1617-a of the tax law, as amended by section 2 of part Z3 of chapter 62 of the laws of 2003, is amended to read as follows: b. [Video] THE HOURS OF OPERATION OF VIDEO lottery gaming shall only be permitted [for no more than sixteen consecutive hours per day and on no day shall such operation be conducted past 2:00 a.m] AS PRESCRIBED BY THE DIVISION OF THE LOTTERY. S. 6275 19 S 2. This act shall take effect immediately; provided that the amend- ments to subdivision b of section 1617-a of the tax law made by section one of this act shall not affect the repeal of such section and shall be deemed repealed therewith. PART H Section 1. Section 19-0323 of the environmental conservation law, as added by chapter 629 of the laws of 2006, is amended to read as follows: S 19-0323. Use of ultra low sulfur diesel fuel and best available tech- nology by the state. 1. As used in this section, the terms: a. "Ultra low sulfur diesel fuel" means diesel fuel having sulfur content of 0.0015 per cent of sulfur or less. b. "Heavy duty vehicle" or "vehicle" means any on and off-road vehicle powered by diesel fuel and having a gross vehicle weight of greater than 8,500 pounds, except that those vehicles defined in section 101 of the vehicle and traffic law, paragraph 2 of schedule E and paragraph (a) of schedule F of subdivision 7 of section 401 of such law, and vehicles specified in subdivision 13 of section 401 of such law, and farm type tractors and all terrain type vehicles used exclusively for agricultural or mowing purposes, or for snow plowing, other than for hire, farm equipment, including self-propelled machines used exclusively in grow- ing, harvesting or handling farm produce, and self-propelled caterpillar or crawler-type equipment while being operated on the contract site, and timber harvesting equipment such as harvesters, wood chippers, forward- ers, log skidders, and other processing equipment used exclusively off highway for timber harvesting and logging purposes, shall not be deemed heavy duty vehicles for purposes of this section. This term shall not include vehicles that are specially equipped for emergency response by the department, office of emergency management, sheriff's office of the department of finance, police department or fire department. c. "Best available retrofit technology" means technology, verified by the United States environmental protection agency for reducing the emis- sion of pollutants that achieves reductions in particulate matter emis- sions at the highest classification level for diesel emission control strategies that is applicable to the particular engine and application. Such technology shall also, at a reasonable cost, achieve the greatest reduction in emissions of nitrogen oxides at such particulate matter reduction level and shall in no event result in a net increase in the emissions of either particulate matter or nitrogen oxides. d. "Reasonable cost" means that such technology does not cost greater than 30 percent more than other technology applicable to the particular engine and application that falls within the same classification level for diesel emission control strategies, as set forth in paragraph c of this subdivision, when considering the cost of the strategies, them- selves, and the cost of installation. E. "USEFUL LIFE" MEANS THE PERIOD OF PROBABLE USEFULNESS FOR WHICH INDEBTEDNESS WAS INCURRED FOR A VEHICLE AS ESTABLISHED IN APPLICABLE STATE FINANCE LAW OR LOCAL FINANCE LAW, REFLECTED IN THE PERIOD FOR WHICH INDEBTEDNESS WAS INCURRED BY THE OWNER OF THE VEHICLE. 2. Any diesel powered heavy duty vehicle that is owned by, operated by or on behalf of, or leased by a state agency and state and regional public authority shall be powered by ultra low sulfur diesel fuel. 3. Any diesel powered heavy duty vehicle that is owned by, operated by or on behalf of, or leased by a state agency and state and regional S. 6275 20 public authority with more than half of its governing body appointed by the governor shall utilize the best available retrofit technology for reducing the emission of pollutants. The commissioner shall promulgate regulations for the implementation of this subdivision specifying proce- dures for compliance according to the following schedule: a. Not less than 33% of the vehicles covered by this subdivision shall have best available retrofit technology on or before December 31, 2008. b. Not less than 66% of the vehicles covered by this subdivision shall have best available retrofit technology on or before December 31, 2009; PROVIDED THAT SUCH VEHICLES ARE NOT WITHIN THREE YEARS OF THE END OF THEIR USEFUL LIFE AND SHALL CEASE TO BE OPERATED UPON THE END OF SUCH USEFUL LIFE. c. [All] THE REMAINDER OF vehicles covered by this subdivision shall have best available retrofit technology on or before December 31, 2010; PROVIDED THAT SUCH VEHICLES ARE NOT WITHIN THREE YEARS OF THE END OF THEIR USEFUL LIFE AND SHALL CEASE TO BE OPERATED UPON THE END OF SUCH USEFUL LIFE. PROVIDED FURTHER THAT ALL VEHICLES COVERED BY THIS SUBDIVI- SION SHALL HAVE BEST AVAILABLE RETROFIT TECHNOLOGY ON OR BEFORE DECEMBER 31, 2012. This subdivision shall not apply to any vehicle subject to a lease or public works contract entered into or renewed prior to the effective date of this section. 4. In addition to other provisions for regulations in this section, the commissioner shall promulgate regulations as necessary and appropri- ate to carry out the provisions of this act including but not limited to provision for waivers upon written finding by the commissioner that (a) best available retrofit technology for reducing the emissions of pollu- tants as required by subdivision 3 of this section is not available for a particular vehicle or class of vehicles and (b) that ultra low sulfur diesel fuel is not available. 5. This section shall not apply where federal law or funding precludes the state from imposing the requirements of this section. 6. On or before January 1, 2008 and every year thereafter, the commis- sioner shall report to the governor and legislature on the use of ultra low sulfur diesel fuel and the use of the best available retrofit tech- nology as required under this section. The information contained in this report shall include, but not be limited to, for each state agency and public authority covered by this section: (a) the total number of diesel fuel-powered motor vehicles owned or operated by such agency and author- ity; (b) the number of such motor vehicles that were powered by ultra low sulfur diesel fuel; (c) the total number of diesel fuel-powered motor vehicles owned or operated by such agency and authority having a gross vehicle weight rating of more than 8,500 pounds; (d) the number of such motor vehicles that utilized the best available retrofit technolo- gy, including a breakdown by motor vehicle model, engine year and the type of technology used for each vehicle; (e) the number of such motor vehicles that are equipped with an engine certified to the applicable 2007 United States environmental protection agency standard for particu- late matter as set forth in section 86.007-11 of title 40 of the code of federal regulations or to any subsequent United States environmental protection agency standard for particulate matter that is at least as stringent; and (f) all waivers, findings, and renewals of such findings, which, for each waiver, shall include, but not be limited to, the quan- tity of diesel fuel needed to power diesel fuel-powered motor vehicles owned or operated by such agency and authority; specific information concerning the availability of ultra low sulfur diesel fuel. S. 6275 21 7. The department shall, to the extent practicable, coordinate with regions which have proposed or adopted heavy duty emission inspection programs to promote regional consistency in such programs. S 2. This act shall take effect immediately. PART I Section 1. This act shall be known and may be cited as the "annual spending growth cap act". S 2. The state finance law is amended by adding a new article 17 to read as follows: ARTICLE 17 ANNUAL SPENDING GROWTH CAP ACT SECTION 250. DEFINITIONS. 251. ESTABLISHMENT OF ANNUAL SPENDING GROWTH CAP. 252. PROVISIONS REGARDING DECLARATION OF EMERGENCY. S 250. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS, UNLESS OTHERWISE SPECIFIED: 1. "ANNUAL SPENDING GROWTH CAP" SHALL MEAN A PERCENTAGE DETERMINED BY ADDING THE INFLATION RATES FROM EACH OF THE FOUR CALENDAR YEARS IMME- DIATELY PRIOR TO THE COMMENCEMENT OF A GIVEN FISCAL YEAR AND THEN DIVID- ING THAT SUM BY FOUR. 2. "STATE OPERATING FUNDS SPENDING" SHALL MEAN ANNUAL DISBURSEMENTS OF ALL GOVERNMENTAL FUND TYPES INCLUDED IN THE CASH-BASIS FINANCIAL PLAN OF THE STATE, EXCLUDING DISBURSEMENTS FROM FEDERAL FUNDS AND CAPITAL PROJECT FUNDS. 3. "INFLATION RATE" SHALL MEAN THE PERCENTAGE CHANGE IN THE TWELVE MONTH AVERAGE OF THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS AS PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS OR ANY SUCCESSOR AGENCY FOR A GIVEN CALENDAR YEAR COMPARED TO THE PRIOR CALENDAR YEAR. 4. "EXECUTIVE BUDGET" SHALL MEAN THE BUDGET SUBMITTED ANNUALLY BY THE GOVERNOR PURSUANT TO SECTION ONE OF ARTICLE VII OF THE STATE CONSTITU- TION. 5. "STATE BUDGET AS ENACTED" SHALL MEAN THE BUDGET ACTED UPON BY THE LEGISLATURE IN A GIVEN FISCAL YEAR, AS SUBJECT TO SECTION FOUR OF ARTI- CLE VII OF THE STATE CONSTITUTION AND SECTION SEVEN OF ARTICLE IV OF THE STATE CONSTITUTION. 6. "EMERGENCY" SHALL MEAN AN EXTRAORDINARY, UNFORESEEN, OR UNEXPECTED OCCURRENCE, OR COMBINATION OF CIRCUMSTANCES, INCLUDING BUT NOT LIMITED TO A NATURAL DISASTER, INVASION, TERRORIST ATTACK, OR ECONOMIC CALAMITY. S 251. ESTABLISHMENT OF ANNUAL SPENDING GROWTH CAP. 1. THERE IS HEREBY ESTABLISHED AN ANNUAL SPENDING GROWTH CAP. 2. THE GOVERNOR SHALL NOT SUBMIT, AND THE LEGISLATURE SHALL NOT ACT UPON, A BUDGET THAT CONTAINS A PERCENTAGE INCREASE OVER THE PRIOR FISCAL YEAR IN STATE OPERATING FUNDS SPENDING WHICH EXCEEDS THE ANNUAL SPENDING GROWTH CAP. 3. THE GOVERNOR SHALL CERTIFY IN WRITING THAT STATE OPERATING FUNDS SPENDING IN THE EXECUTIVE BUDGET DOES NOT EXCEED THE ANNUAL SPENDING GROWTH CAP. IF FINAL INFLATION RATE DATA FOR THE PRIOR CALENDAR YEAR IS NOT YET AVAILABLE AT THE TIME THE GOVERNOR SUBMITS HIS OR HER EXECUTIVE BUDGET, HE OR SHE SHALL FURNISH A REASONABLE ESTIMATE OF SUCH PRIOR CALENDAR YEAR INFLATION RATE. 4. THE COMPTROLLER SHALL PROVIDE, WITHIN FIVE DAYS OF ACTION BY THE LEGISLATURE UPON THE BUDGET, A DETERMINATION AS TO WHETHER THE STATE S. 6275 22 OPERATING FUNDS SPENDING AS SET FORTH IN THE STATE BUDGET AS ENACTED EXCEEDS THE ANNUAL SPENDING GROWTH CAP. 5. IF THE COMPTROLLER FINDS THAT STATE OPERATING FUNDS SPENDING AS SET FORTH IN THE STATE BUDGET AS ENACTED EXCEEDS THE ANNUAL SPENDING GROWTH CAP, THE GOVERNOR AND THE STATE LEGISLATURE SHALL TAKE CORRECTIVE ACTION TO ENSURE THAT FUNDING IS LIMITED TO THE AMOUNT OF THE ANNUAL SPENDING CAP. S 252. PROVISIONS REGARDING DECLARATION OF EMERGENCY. 1. UPON A FIND- ING OF AN EMERGENCY BY THE GOVERNOR, HE OR SHE MAY DECLARE AN EMERGENCY BY AN EXECUTIVE ORDER WHICH SHALL SET FORTH THE REASONS FOR SUCH DECLA- RATION. 2. BASED UPON SUCH DECLARATION, THE GOVERNOR MAY SUBMIT, AND THE LEGISLATURE MAY AUTHORIZE A BUDGET CONTAINING A PERCENTAGE INCREASE OVER THE PRIOR FISCAL YEAR IN STATE OPERATING FUNDS SPENDING THAT EXCEEDS THE ANNUAL SPENDING GROWTH CAP. S 3. This act shall take effect immediately. PART J Section 1. The legislature finds and declares that in order for the state to address its financial deficit, the structure and organization of current governmental agencies must be reviewed. A careful assessment and analysis of the state's current governmental structure could reveal areas in which savings for the taxpayers of the state of New York could be achieved. Such savings will allow the state to position itself for a faster and more complete recovery from the current economic downturn. In addressing the aforementioned matter, the issues under review should include, but not be limited to: (1) Economies of scale; (2) Efficient use of resources; (3) Combination and consolidation within functional areas; (4) Combination and consolidation within geographical areas; and (5) Review of best practices. S 2. (a) A legislative commission on governmental restructuring is hereby created to conduct the examination and analysis as described in section one of this act, and recommend the best course of action for reorganizing the government of the state. (b) The commission shall consist of twelve members, each shall be appointed for a term of one hundred eighty days, consisting of four members appointed by the temporary president of the senate, four members appointed by the speaker of the assembly, two members appointed by the minority leader of the senate, and two members appointed by the minority leader of the assembly. (c) The commission may meet within and without the state, shall hold public hearings, and shall have all the powers of a legislative commit- tee pursuant to the legislative law. (d) The members of the commission shall receive no compensation for their services, but shall be allowed their actual and necessary expenses incurred in the performance of their duties pursuant to this act. (e) To the maximum extent feasible, the commission shall be entitled to request and receive and shall utilize and be provided with such facilities, resources, and data of any court, department, division, office, board, bureau, commission, or agency of the state or any poli- tical subdivision thereof as it may reasonably request to properly carry out its powers and duties pursuant to this act. S. 6275 23 (f) The appointing authorities shall appoint the members of the legis- lative commission on governmental restructuring on or before fifteen days after this act shall have become law and the commission shall convene its first meeting on or before fifteen days thereafter. (g) The commission shall issue a report to the governor, the temporary president of the senate, the speaker of the assembly, the minority lead- er of the senate, and the minority leader of the assembly of its find- ings, conclusions, and recommendations on or before December 31, 2009. S 3. This act shall take effect immediately and shall expire and be deemed repealed March 31, 2010. S 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judg- ment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. S 3. This act shall take effect immediately provided, however, that the applicable effective date of Parts A through J of this act shall be as specifically set forth in the last section of such Parts.
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