Bill Text: NY S06275 | 2009-2010 | General Assembly | Introduced


Bill Title: 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; relates to allowing the New York state employee health insurance plan to have the option to be self insured; relates to the health benefit plan for employees; relates to bonds of the Tobacco Settlement Financing Corporation; relates to the development of the port of New York in relation to authorizing a contribution to the state treasury; relates to the hours of operation of video lottery gaming; relates to the use of ultra low sulfur diesel fuel and best available technology by the state; relates to establishing the "annual spending growth cap act"; creates a legislative commission on governmental restructuring; provides for the repeal of such provisions upon expiration thereof.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-01-06 - REFERRED TO FINANCE [S06275 Detail]

Download: New_York-2009-S06275-Introduced.html
                           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
    1    Section 1. This act enacts into law major  components  of  legislation
    2  which are necessary to implement the state fiscal plan for the 2009-2010
    3  state  fiscal  year.  Each  component  is wholly contained within a Part
    4  identified as Parts A through J. The effective date for each  particular
    5  provision contained within such Part is set forth in the last section of
    6  such Part. Any provision in any section contained within a Part, includ-
    7  ing the effective date of the Part, which makes a reference to a section
    8  "of  this  act", when used in connection with that particular component,
    9  shall be deemed to mean and refer to the corresponding  section  of  the
   10  Part  in  which  it  is  found. Section three of this act sets forth the
   11  general effective date of this act.
   12                                   PART A
   13    Section 1. (a) Notwithstanding the provisions of any other law to  the
   14  contrary,  there  is  hereby established an accounts receivable discount
   15  program as described in this section, to be administered by the  commis-
   16  sioner  of  taxation  and  finance,  and  to be effective for the period
   17  prescribed by such commissioner, for all eligible taxpayers as described
   18  in this section owing any tax, fee, or  surcharge  imposed  or  formerly
   19  imposed  by,  or  authorized under, the tax law, and administered by the
   20  commissioner of taxation and finance.
   21    (b) For purposes of  the  accounts  receivable  discount  program,  an
   22  eligible  taxpayer  is an individual, partnership, estate, trust, corpo-
   23  ration, limited liability company, joint stock  company,  or  any  other
   24  company,  trustee,  receiver,  assignee,  referee, society, association,
   25  business or any other person as described in the tax law, who  or  which
   26  has a tax liability with regard to one or more taxes, fees or surcharges
   27  that  meet the conditions described in this section. However, a taxpayer
   28  who or that has been convicted of crime under the tax law or  the  penal
   29  law,  and who or that is subject to a court order to pay a tax liability
   30  as a result of that conviction, is not eligible to participate  in  this
   31  program.
   32    (c)  For  purposes  of  the  accounts  receivable discount program, an
   33  eligible tax liability is one that has become fixed and final,  and  for
   34  which  an  assessment  or  final  determination  was issued on or before
   35  December 31, 2006. An  eligible  tax  liability  shall  not  include  an
   36  assessment  or  final  determination that includes any of the following:
   37  (1) any fraud penalty imposed under the tax law; (2) a  penalty  imposed
   38  under  section  11  of  part  N of chapter 61 of the laws of 2005; (3) a
   39  penalty imposed under subsection (e), (g), (p), (p-1),  (r),  (x),  (y),
   40  (z),  (aa)  or  (bb)  of  section  685  of the tax law; or (4) a penalty
   41  imposed under subsection (f), (k), (k-1), (l), (p), (q), (r), (s) or (t)
   42  of section 1085 of the tax law.
   43    (d) The amount due under the accounts receivable discount program  for
   44  an eligible tax liability for which an assessment or final determination
   45  was  issued  after  December 31, 2003 and on or before December 31, 2006
   46  must include the underlying tax  liability  and  fifty  percent  of  the
   47  accrued  interest and penalty (including the additional rate of interest
   48  prescribed under section 1145 of  the  tax  law,  referred  to  in  this
   49  section as "interest penalty"). The amount due under this program for an
   50  eligible  tax  liability  for which an assessment or final determination
   51  was issued on or before December 31, 2003 must  include  the  underlying
   52  tax  liability  and  twenty  percent of the accrued interest and penalty
   53  (including interest penalty).
       S. 6275                             3
    1    (e) The commissioner  of  taxation  and  finance  shall  identify  the
    2  assessments  and  final determinations with tax liabilities eligible for
    3  the accounts receivable discount  program  described  in  this  section,
    4  compute  the  total  amount  of tax, interest, and penalty due under the
    5  accounts  receivable  discount  program on each such assessment or final
    6  determination, and notify eligible taxpayers of  the  amount  due  under
    7  this  program  for  each  such  assessment  or  final determination. The
    8  discount of a percentage of  interest  and  penalty  described  in  this
    9  section  will  not be granted to any taxpayer for any such assessment or
   10  final determination unless the taxpayer pays  in  full  the  amount  due
   11  under  this  program  for  that  assessment or final determination on or
   12  before the date prescribed by the commissioner.
   13    (f) Under the accounts receivable discount program,  payment  will  be
   14  made by eligible taxpayers with eligible tax liabilities in the form and
   15  manner  prescribed  by  the  commissioner of taxation and finance.  Upon
   16  payment in full by the date prescribed by the commissioner  of  taxation
   17  and  finance  of  the  amount due under the accounts receivable discount
   18  program for an eligible tax liability, the taxpayer's liability for that
   19  assessment or final determination will be deemed to  be  paid  in  full.
   20  Failure  to  pay  the  full  amount  due  under this program by the date
   21  prescribed by the commissioner of taxation and finance  will  disqualify
   22  an  eligible  tax  liability from receiving the discount of interest and
   23  penalty described in this section.
   24    (g) No refund will be granted or credit allowed with  respect  to  any
   25  penalty  or interest paid prior to the time the taxpayer participates in
   26  the accounts receivable discount program.
   27    (h) No refund will be granted or credit allowed with  respect  to  any
   28  tax  liability, including any applicable interest or penalty, paid under
   29  the accounts receivable discount program.
   30    (i) If an eligible taxpayer has entered into  an  installment  payment
   31  agreement  that  applies  to an eligible tax liability, the taxpayer may
   32  participate in the accounts receivable discount program with respect  to
   33  that  liability,  if the taxpayer pays the amount due under the accounts
   34  receivable discount program in  full  by  the  date  prescribed  by  the
   35  commissioner of taxation and finance.
   36    (j)  On  or  before  March  31, 2009, the commissioner of taxation and
   37  finance shall submit a report to the chairman of the assembly  ways  and
   38  means  committee,  the  ranking minority member of the assembly ways and
   39  means committee, the chairman of the senate finance committee, the rank-
   40  ing minority member of the senate finance committee and the director  of
   41  the  division  of  the budget regarding the accounts receivable discount
   42  program established pursuant to this act. The report shall  contain  the
   43  following  information  as  of the report cutoff date: (i) the number of
   44  cases by tax area in which the program was available; (ii) the amount of
   45  tax and interest and penalty due by tax area; (iii) the amount of penal-
   46  ty and interest penalty waived in all cases by tax area; (iv) the  gross
   47  revenue collected under each tax and the year or other applicable period
   48  for  or  during which the liability was incurred; (v) an estimate of the
   49  amount of revenue received during the period of the accounts  receivable
   50  discount  program  provided  for  herein which would have otherwise been
   51  received during another period; and (vi) an estimate of the net  revenue
   52  generated from the accounts receivable discount program.
   53    S 2. This act shall take effect immediately.
   54                                   PART B
       S. 6275                             4
    1    Section  1.  Subdivision  2  of section 1975 of the public authorities
    2  law, as added by section 1 of part AA of chapter 59 of the laws of 2009,
    3  is amended to read as follows:
    4    2. Notwithstanding any provision of law to the contrary, the authority
    5  is  hereby authorized to contribute [twenty] TWO HUNDRED million dollars
    6  to the state treasury to the credit of the general fund.
    7    S 2. Subdivision 1 of section 1977-a of the public authorities law  is
    8  amended by adding a new paragraph (f) to read as follows:
    9    (F)  FINANCING TERMINATION COSTS OF INTEREST RATE EXCHANGE AGREEMENTS.
   10  IN ADDITION TO THE AUTHORIZATIONS CONTAINED ELSEWHERE IN  THIS  SUBDIVI-
   11  SION  THE  AUTHORITY  MAY BORROW MONEY BY ISSUING BONDS OR NOTES FOR THE
   12  PURPOSE OF PAYING COSTS OF TERMINATING ANY INTEREST RATE EXCHANGE AGREE-
   13  MENTS ENTERED INTO BY THE AUTHORITY PLUS A PRINCIPAL AMOUNT OF BONDS  OR
   14  NOTES  ISSUED (I) TO FUND ANY RELATED DEBT SERVICE RESERVE FUND, (II) TO
   15  PROVIDE CAPITALIZED INTEREST, AND (III) TO PROVIDE FOR  FEES  AND  OTHER
   16  CHARGES  AND  EXPENSES INCLUDING ANY UNDERWRITERS' DISCOUNTS, RELATED TO
   17  THE ISSUANCE OF SUCH BONDS OR NOTES, ALL AS DETERMINED BY THE AUTHORITY,
   18  EXCLUDING BONDS AND NOTES ISSUED TO REFUND OUTSTANDING BONDS  AND  NOTES
   19  ISSUED PURSUANT TO THIS SECTION.
   20    S 3. This act shall take effect immediately.
   21                                   PART C
   22    Section  1.  Section  2  of  part PP of chapter 56 of the laws of 2009
   23  entitled "Labor",  relating  to  providing  for  the  administration  of
   24  certain  funds and accounts related to the 2009-10 budget, is amended by
   25  adding a new subdivision 5 to read as follows:
   26    5. $40,000,000 FROM THE GENERAL  MISCELLANEOUS  SPECIAL  REVENUE  FUND
   27  (339) DISABILITY BENEFITS FUND (B7) TO THE GENERAL FUND.
   28    S  2. Section 12 of part PP of chapter 56 of the laws of 2009 relating
   29  to providing for  the  administration  of  certain  funds  and  accounts
   30  related to the 2009-10 budget, is amended to read as follows:
   31    S  12. Notwithstanding any law to the contrary, and in accordance with
   32  section 4 of the state finance law, the comptroller is hereby authorized
   33  and directed to transfer, at the request of the director of the  budget,
   34  up  to  [$200] $500 million from the unencumbered balance of any special
   35  revenue fund or account, or combination of funds and  accounts,  to  the
   36  general  fund.  The  amounts  transferred pursuant to this authorization
   37  shall be in addition to any other transfers expressly authorized in  the
   38  2009-10  budget. Transfers from federal funds, debt service funds, capi-
   39  tal projects funds, or the community projects  fund  are  not  permitted
   40  pursuant  to this authorization. The director of the budget shall notify
   41  both houses of the legislature in writing prior to initiating  transfers
   42  pursuant to this authorization.
   43    S  3. Notwithstanding any provision of law to the contrary, the dormi-
   44  tory authority of the state of New York is authorized and directed, upon
   45  the request of the director of the budget, to  transfer  $26,000,000  to
   46  the general fund on or before March 31, 2010.
   47    S 4. Notwithstanding any law to the contrary, the insurance department
   48  shall  finance  the  annual expenses related to its activities and oper-
   49  ations through assessments upon those  entities  required  to  pay  such
   50  assessments  pursuant  to  section  332  of the insurance law. For state
   51  fiscal year 2009-10, the total value of the annual  assessment  will  be
   52  equal  to the total value of the department's enacted appropriations. In
   53  such instances where the total value of the annual  industry  assessment
   54  exceeds actual annual expenses of the department's operations and activ-
       S. 6275                             5
    1  ities,  in accordance with section 4 of the state finance law, the comp-
    2  troller is hereby authorized and directed to transfer, at the request of
    3  the director of the budget,  up  to  $3,025,000  from  the  unencumbered
    4  balance  of the special revenue fund (339), insurance department account
    5  (B6) to the general fund on or before March 31, 2010.
    6    S 5. Notwithstanding any provision of law, rule or regulation  to  the
    7  contrary,  the  New York State energy research and development authority
    8  is authorized and directed to make a contribution to the state  treasury
    9  to  the  credit  of  the  general fund in the amount of $90,000,000 from
   10  proceeds collected by the authority from the auction or sale  of  carbon
   11  dioxide emission allowances allocated by the department of environmental
   12  conservation  under  the Regional Greenhouse Gas Initiative on or before
   13  March 31, 2010.
   14  If, in any fiscal year, such moneys retained by the authority  from  the
   15  auction  or  sale of carbon dioxide emission allowances allocated by the
   16  department of environmental conservation under the  Regional  Greenhouse
   17  Gas  Initiative  are deemed insufficient by the director of the division
   18  of the budget to meet actual and anticipated  disbursements,  the  comp-
   19  troller  shall  at  the direction of the director of the division of the
   20  budget, transfer from the general fund to  the  New  York  State  energy
   21  research  and  development  authority  moneys  sufficient  to  meet such
   22  disbursements. Such transfers shall be made only upon  certification  of
   23  need  by the director of the division of the budget, with copies of such
   24  certification filed with the chairperson of the senate  finance  commit-
   25  tee,  the  chairperson  of the assembly ways and means committee and the
   26  state comptroller. The aggregate amount of all transfers to the New York
   27  State  energy  research  and  development  authority  shall  not  exceed
   28  $90,000,000 in total.
   29    S  6.  Notwithstanding any other provision of the law to the contrary,
   30  and in accordance with section 4 of the state  finance  law,  the  comp-
   31  troller is hereby authorized to transfer upon request of the director of
   32  the  budget,  $29,000,000  on  or  before  March 31, 2010, from the city
   33  university special revenue fund  (377),  city  university  stabilization
   34  account (A1), to the general fund.
   35    S  7.  Notwithstanding any other provision of law to the contrary, and
   36  in accordance with section 4 of the state finance law,  the  comptroller
   37  is  hereby  authorized  to  transfer upon request of the director of the
   38  budget, $160,000,000 from the Employee Health Insurance  Fund  (152)  to
   39  the general fund.
   40    S  8. This act shall take effect immediately; provided that the amend-
   41  ments to sections 2 and 12 of part PP of chapter 56 of the laws of  2009
   42  made  by sections one and two of this act shall not affect the repeal of
   43  such sections and shall be deemed repealed therewith.
   44                                   PART D
   45    Section 1. The section heading and subdivision 1 of section 160 of the
   46  civil service law, as amended by chapter 329 of the laws  of  1960,  are
   47  amended to read as follows:
   48    Regulations  governing  the  health [insurance] BENEFIT plan; advisory
   49  committee.  1. The president, subject to the provisions of this article,
   50  is hereby empowered to establish regulations relating to:
   51    (1) the eligibility of (a) active and (b) retired employees to partic-
   52  ipate in the health [insurance] BENEFIT plan authorized by this article,
       S. 6275                             6
    1    (2) the terms and conditions of the insurance AND/OR PLAN  ADMINISTRA-
    2  TOR  contract  or  contracts, as applied to (a) active employees and (b)
    3  retired employees, and
    4    (3)  the purchase of such insurance AND/OR PLAN ADMINISTRATOR contract
    5  or contracts and the administration of such health  [insurance]  BENEFIT
    6  plan.
    7    The  president shall adopt such further regulations as may be required
    8  for the effective administration of this article, including the right to
    9  require advance payments of any portion of the  amount  required  to  be
   10  paid  by  any participating employer as its share in connection with the
   11  operation of the health [insurance] BENEFIT plan hereunder.
   12    S 2. Subdivisions 1 and 3 of section 161 of the civil service law,  as
   13  amended  by  chapter  329  of  the  laws of 1960, are amended to read as
   14  follows:
   15    1. The president is hereby authorized  and  directed  to  establish  a
   16  health  [insurance]  BENEFIT  plan  for state officers and employees and
   17  their dependents and officers and employees of  the  state  colleges  of
   18  agriculture,  home  economics, industrial labor relations and veterinary
   19  medicine, the state agricultural experiment station at Geneva,  and  any
   20  other  institution or agency under the management and control of Cornell
   21  university as the representative of the board of trustees of  the  state
   22  university  of  New  York,  and  the state college of ceramics under the
   23  management and control of Alfred university as the representative of the
   24  board of trustees of the state university of New York and  their  depen-
   25  dents which, subject to the conditions and limitations contained in this
   26  article, and in the regulations of the president, will provide for group
   27  hospitalization,  surgical  and  medical insurance against the financial
   28  costs of hospitalization, surgery, medical treatment and care,  and  may
   29  include,  among  other  things  prescribed  drugs, medicines, prosthetic
   30  appliances, hospital in-patient and  out-patient  service  benefits  and
   31  medical expense indemnity benefits.
   32    3. The health [insurance] BENEFIT plan shall be designed by the presi-
   33  dent  (1)  to  provide  a  reasonable relationship between the hospital,
   34  surgical and medical benefits to be included, and the expected  distrib-
   35  ution  of  expenses  of  each  such  type  to be incurred by the covered
   36  employees and dependents, and (2) to include reasonable controls,  which
   37  may  include deductible and coinsurance provisions applicable to some or
   38  all of the benefits, to reduce unnecessary utilization  of  the  various
   39  hospital,  surgical  and  medical services to be provided and to provide
   40  reasonable assurance of stability in future years of the plan,  and  (3)
   41  to  provide  benefits on a non-discriminatory basis to the extent possi-
   42  ble, to active members throughout the state, wherever located.
   43    S 3. The section heading and subdivisions 1 and 2 of  section  162  of
   44  the  civil service law, the section heading and subdivision 2 as amended
   45  by chapter 329 of the laws of 1960 and subdivision 1 as amended by chap-
   46  ter 805 of the laws of 1984, are amended to read as follows:
   47    Contract for health [insurance] BENEFITS.  1. The president is  hereby
   48  authorized  and  directed to purchase a contract or contracts to provide
   49  the benefits under the plan of health  [insurance]  benefits  determined
   50  upon in accordance with the provisions of this article. Such contract or
   51  contracts  shall  be purchased from one or more corporations licensed to
   52  transact accident and health insurance business in this state or subject
   53  to article forty-three of the insurance law.  ALTERNATIVELY, THE  PRESI-
   54  DENT MAY PROVIDE HEALTH BENEFITS DIRECTLY TO PLAN PARTICIPANTS, IN WHICH
   55  CASE  THE  PRESIDENT  IS  HEREBY  AUTHORIZED  TO  PURCHASE A CONTRACT OR
   56  CONTRACTS WITH ONE OR MORE FIRMS QUALIFIED TO ADMINISTER,  ON  NEW  YORK
       S. 6275                             7
    1  STATE  HEALTH BENEFIT PLAN'S BEHALF, THE PLAN OF BENEFITS REQUIRED UNDER
    2  THIS ARTICLE. ANY HEALTH INSURANCE COVERAGE MANDATED BY  LAW  APPLICABLE
    3  TO  CONTRACTS FOR HEALTH INSURANCE ENTERED INTO UNDER THIS SECTION SHALL
    4  ALSO  APPLY  TO  THE PROVISION OF ANY BENEFITS PURSUANT TO THIS SUBDIVI-
    5  SION. All of the benefits to be  provided  under  this  article  may  be
    6  included  in one or more similar contracts, or the benefits may be clas-
    7  sified into different types with each type included under  one  or  more
    8  similar contracts issued by the same or different companies.
    9    2.  A  reasonable  time before entering into any insurance contract OR
   10  CONTRACT WITH AN ADMINISTRATOR OR ADMINISTRATORS hereunder,  the  presi-
   11  dent  shall invite proposals from such qualified insurers OR ADMINISTRA-
   12  TORS as in his OR HER opinion would desire to accept  any  part  of  the
   13  insurance  coverage  OR ADMINISTRATIVE SERVICES authorized by this arti-
   14  cle.
   15    S 4. Subdivisions 1, 2, 5, 7 and 8 of section 163 of the civil service
   16  law, subdivisions 1 and 5 as amended by chapter 329 of the laws of 1960,
   17  subdivision 2 as amended by chapter 617 of the laws of 1967, subdivision
   18  7 as amended by chapter 198 of the laws of 1966  and  subdivision  8  as
   19  added  by  chapter  394  of  the  laws  of  1984, are amended to read as
   20  follows:
   21    1. All persons in the service of the state, whether elected, appointed
   22  or employed, who elect to participate in such health [insurance] BENEFIT
   23  plan shall be eligible to participate therein, provided,  however,  that
   24  the president may adopt such regulations as he OR SHE may deem appropri-
   25  ate excluding temporary, part time or intermittent employment.
   26    2.  The  contract  or  contracts  shall provide for health [insurance]
   27  BENEFITS for retired employees of the state and of the state colleges of
   28  agriculture, home economics, industrial labor relations  and  veterinary
   29  medicine,  the  state agricultural experiment station at Geneva, and any
   30  other institution or agency under the management and control of  Cornell
   31  university  as  the representative of the board of trustees of the state
   32  university of New York, and the state  college  of  ceramics  under  the
   33  management and control of Alfred university as the representative of the
   34  board of trustees of the state university of New York, and their spouses
   35  and  dependent  children as defined by the regulations of the president,
   36  on such terms as the president may deem appropriate, and  the  president
   37  may  authorize  the  inclusion  in the plan of the employees and retired
   38  employees of public authorities,  public  benefit  corporations,  school
   39  districts,  special  districts,  district corporations, municipal corpo-
   40  rations excluding active  employees  and  retired  employees  of  cities
   41  having  a  population  of  one million or more inhabitants whose compen-
   42  sation is or was before retirement paid out of  the  city  treasury,  or
   43  other  appropriate  agencies, subdivisions or quasi-public organizations
   44  of the state and their spouses and dependent children as defined by  the
   45  regulations  of the president. Any such corporation, district, agency or
   46  organization electing to participate in the plan shall  be  required  to
   47  pay  its  proportionate  share  of the expenses of administration of the
   48  plan in such amounts and at such times as determined and  fixed  by  the
   49  president.    All  amounts  payable  for such expenses of administration
   50  shall be paid to the commissioner of taxation and finance and  shall  be
   51  applied  to  the  reimbursement  of  funds  previously advanced for such
   52  purposes.  Neither the state nor any other participant in the plan shall
   53  be charged with the particular experience attributable to the  employees
   54  of  the participant, and all dividends or retroactive rate credits shall
   55  be distributed pro-rata based upon  the  number  of  employees  of  such
   56  participant covered by the plan.
       S. 6275                             8
    1    5.  The  chief fiscal officer of any such participating employer shall
    2  be authorized to deduct from the wages or salary paid to  its  employees
    3  who  are  participants  in such health [insurance] BENEFIT plan the sums
    4  required to be paid by them under such  plan.  Each  such  participating
    5  employer  is  authorized  to appropriate such sums as are required to be
    6  paid by it as its share in connection with the operation of such plan.
    7    7. For purposes of eligibility for participation in the health [insur-
    8  ance] BENEFIT plan no person shall be deemed to be a  state  officer  or
    9  employee  or  to  be  in  the  service of the state unless his salary or
   10  compensation is paid directly by the  state,  and  no  person  shall  be
   11  deemed to be a retired officer or employee of the state unless his sala-
   12  ry or compensation immediately preceding his retirement was paid direct-
   13  ly  by  the  state;  provided,  however,  that  all  active  and retired
   14  justices, judges, officers and employees of the  supreme  court,  surro-
   15  gate's court, county court, family court, civil court of the city of New
   16  York,  criminal  court of the city of New York and district court in any
   17  county, officers and employees of the office of probation for the courts
   18  of New York city shall be  eligible  for  participation  in  the  health
   19  [insurance]  BENEFIT  plan  whether  or  not  their salaries are paid or
   20  before retirement were paid directly by the state.
   21    8. Notwithstanding any other law, rule or regulation to the  contrary,
   22  where the state and an employee organization representing state officers
   23  and employees who are in positions which are in the collective negotiat-
   24  ing  unit established by chapter four hundred three of the laws of nine-
   25  teen hundred eighty-three enter into a collectively negotiated agreement
   26  pursuant to article fourteen of this chapter providing that officers and
   27  employees who hold positions in such unit on or after April first, nine-
   28  teen hundred eighty-four and who immediately upon termination from  such
   29  position  are  eligible  to receive a retirement benefit from either the
   30  New York state or New York city retirement systems shall continue to  be
   31  eligible  to  participate  in  the  employee benefit fund established by
   32  section two hundred six-a of the state finance law,  such  officers  and
   33  employees  upon  retirement shall continue to participate in and receive
   34  the benefits of such fund as provided in  such  collectively  negotiated
   35  agreement  and  shall  not  be eligible to receive and shall not receive
   36  from the statewide health [insurance] BENEFIT plan established  pursuant
   37  to  this  article coverage for benefits covered by such employee benefit
   38  fund.
   39    S 4-a. Section 163-a of the civil service law, as added by chapter 302
   40  of the laws of 1985, is amended to read as follows:
   41    S 163-a. Health insurance adjustment. 1.  For  the  purposes  of  this
   42  section,  the  term "supplementary plan" shall mean a health [insurance]
   43  BENEFIT plan which provides an adjustment to the deductible or  co-insu-
   44  rance  liability  or  to  the  benefits provided by the statewide health
   45  [insurance] BENEFIT plan  purchased  pursuant  to  section  one  hundred
   46  sixty-two of this article.
   47    2.  The  president  may require the insurer of a supplementary plan to
   48  the statewide health [insurance] BENEFIT plan, provided as a result of a
   49  collectively negotiated agreement pursuant to article fourteen  of  this
   50  chapter,  to  make  a comparable supplementary plan available to partic-
   51  ipating employers as of the implementation date of the state  employees'
   52  supplementary  plan.  The comparable supplementary plan shall be experi-
   53  ence rated as to those participating employers  electing  it,  with  the
   54  costs thereof allocated equitably among them.
   55    3.  Every participating employer which, on or before July first, nine-
   56  teen hundred eighty-five, entered into a collectively negotiated  agree-
       S. 6275                             9
    1  ment  pursuant  to article fourteen of this chapter with employee organ-
    2  izations representing its employees  to  provide  the  statewide  health
    3  [insurance]  BENEFIT  plan  shall  provide such comparable supplementary
    4  plan  on  the  date established by the president until the expiration of
    5  such negotiated agreement.
    6    S 5. Section 165 of the civil service law, as amended by  chapter  810
    7  of the laws of 1964, subdivision 2 as amended by chapter 608 of the laws
    8  of 1977, is amended to read as follows:
    9    S 165. Termination  of  active employment.   1. The health [insurance]
   10  BENEFIT coverage of any employee and his  OR  HER  dependents,  if  any,
   11  shall  cease  upon  the  discontinuance  of his OR HER term of office or
   12  employment, subject to regulations which may be prescribed by the presi-
   13  dent for extension of coverage  and  for  conversion  to  an  individual
   14  contract  providing for such of the benefits provided under this article
   15  as may be provided under such individual contracts, under terms approved
   16  by the president, the total cost of any such contract to be borne by the
   17  employee.
   18    2. In the event of death of an employee having coverage at the time of
   19  death for himself OR HERSELF and his OR HER dependents,  and  where  the
   20  circumstances of death are such that beneficiaries or dependents of such
   21  deceased employee are entitled to an accidental death benefit payable by
   22  a retirement system or pension plan administered by the state or a civil
   23  division  thereof  on  account  of  death  resulting  from  an  accident
   24  sustained in the performance of his OR HER duties or to  death  benefits
   25  provided  for under the [workmen's] WORKERS' compensation law, the unre-
   26  married spouse of such employee covered at the time of his OR HER  death
   27  and  his  OR HER covered dependents, for so long as they would otherwise
   28  qualify as dependents eligible for coverage under the regulations of the
   29  president, shall be eligible to continue full coverage under the  health
   30  [insurance]  BENEFIT  plan  upon  payment at intervals determined by the
   31  president of the full cost of such coverage; provided, however, that the
   32  state shall pay and any participating employer may elect to pay the full
   33  cost of such coverage, except that in the case of those enrolled  in  an
   34  optional  benefit  plan, the employer shall contribute not more than the
   35  same dollar amount which would be paid if such  unremarried  spouse  and
   36  dependents were enrolled in the basic statewide health [insurance] BENE-
   37  FIT  plan. The president shall adopt such regulations as may be required
   38  to carry out the provisions of this subdivision which shall include, but
   39  need not be limited to, provisions for filing application for  continued
   40  coverage,  including reasonable time limits therefor, and provisions for
   41  continued coverage of spouse and dependents pending determination of  an
   42  application  for  accidental  death benefits from a retirement system or
   43  pension plan administered by the state or a civil  division  thereof  or
   44  pending  determination  of  a  claim for death benefits under the [work-
   45  men's] WORKERS' compensation law.
   46    S 6. Section 165-a of the civil service law, as amended by chapter 467
   47  of the laws of 1991, the closing paragraph as added by  chapter  105  of
   48  the laws of 2005, is amended to read as follows:
   49    S 165-a. Continuation  of  state  health [insurance] BENEFIT plans for
   50  survivors of employees of the state and/or of a political subdivision or
   51  of a public authority. Notwithstanding any other provision of law to the
   52  contrary, the president shall permit  the  unremarried  spouse  and  the
   53  dependents,  otherwise  qualified  as  eligible for coverage under regu-
   54  lations of the president, of a person who was an employee of  the  state
   55  and/or  of  a political subdivision thereof or of a public authority for
   56  not less than ten years, provided however,  that  the  ten-year  service
       S. 6275                            10
    1  requirement shall not apply to such employees on active military duty in
    2  connection  with  the  Persian  Gulf conflict who die on or after August
    3  second, nineteen hundred ninety while in the Persian Gulf combat zone or
    4  while performing such military duties, who had been a participant in any
    5  of  the  state  health  [insurance] BENEFIT plans, to continue under the
    6  coverage which such deceased employee had  in  effect  at  the  time  of
    7  death,  upon the payment at intervals determined by the president of the
    8  full cost of such coverage,  provided,  however,  that  the  unremarried
    9  spouse  of  an  active  employee of the State who died on or after April
   10  first, nineteen hundred seventy-five and before  April  first,  nineteen
   11  hundred  seventy-nine who timely elected to continue dependent coverage,
   12  or such unremarried spouse who timely elected individual coverage  shall
   13  continue  to pay at intervals determined by the president one-quarter of
   14  the full cost of dependent coverage and  provided  further,  that,  with
   15  regard to employees of the State, where and to the extent that an agree-
   16  ment  pursuant to article fourteen of this chapter so provides, or where
   17  the director of employee relations, with respect  to  employees  of  the
   18  State  who  are  not included within a negotiating unit so recognized or
   19  certified pursuant to article fourteen of this chapter whom the director
   20  of employee relations determines should be  declared  eligible  for  the
   21  continuation  of  health  [insurance] BENEFIT plans for the survivors of
   22  such employees of the  State,  the  president  shall  adopt  regulations
   23  providing  for  the  continuation  of such health [insurance] BENEFIT OR
   24  BENEFITS by the unremarried spouse of an active employee  of  the  State
   25  who  died  on  or  after  April first, nineteen hundred seventy-nine who
   26  elects to continue dependent coverage, or such  unremarried  spouse  who
   27  elects  individual  coverage, and upon such election shall pay at inter-
   28  vals determined by the president one-quarter of the full cost of depend-
   29  ent coverage and, provided further with respect to enrolled employees of
   30  a political subdivision or public authority in a negotiating unit recog-
   31  nized or certified pursuant to article fourteen of this  chapter,  where
   32  an  agreement  negotiated pursuant to said article so provides, and with
   33  respect to enrolled employees  of  a  political  subdivision  or  public
   34  authority not included within a negotiating unit so recognized or certi-
   35  fied,  at  the  discretion  of  the appropriate political subdivision or
   36  public authority, the unremarried spouse of an active  employee  of  the
   37  political  subdivision  or  of the public authority who died on or after
   38  April first,  nineteen  hundred  seventy-five,  may  elect  to  continue
   39  dependent  coverage  or  such  unremarried  spouse  may elect individual
   40  coverage and upon such election shall pay at intervals determined by the
   41  president one-quarter of the full cost of dependent coverage.
   42    The president shall adopt such regulations as may be required to carry
   43  out the provisions of this subdivision which shall include, but need not
   44  be limited to, provisions for filing application for continued coverage.
   45    Notwithstanding any law to the contrary, the survivors of any employee
   46  subject to this section shall be  entitled  to  the  health  [insurance]
   47  benefits  granted  pursuant to this section, provided that such employee
   48  died while on active duty other than for training purposes, pursuant  to
   49  Title  10 of the United States Code, with the armed forces of the United
   50  States, and such member died on such active duty on or after the  effec-
   51  tive  date of [the] chapter ONE HUNDRED FIVE of the laws of two thousand
   52  five [which added this paragraph] as a result of  injuries,  disease  or
   53  other medical condition sustained or contracted in such active duty with
   54  the armed forces of the United States.
   55    S  7.  Paragraph  (a)  of subdivision 1 and subdivisions 2, 4 and 5 of
   56  section 167 of the civil service law, paragraph (a) of subdivision 1  as
       S. 6275                            11
    1  amended  by chapter 582 of the laws of 1988, subdivision 2 as amended by
    2  chapter 534 of the laws of 1998, subdivision 4 as amended by chapter 407
    3  of the laws of 1970 and subdivision 5 as amended by chapter 617  of  the
    4  laws of 1967, are amended to read as follows:
    5    (a)  The full cost of premium or subscription charges for the coverage
    6  of retired state employees who are enrolled in  the  statewide  and  the
    7  supplementary  health  [insurance] BENEFIT plans established pursuant to
    8  this article and who retired prior to January  first,  nineteen  hundred
    9  eighty-three  shall  be  paid  by  the state. Nine-tenths of the cost of
   10  premium or subscription charges for the coverage of state employees  and
   11  retired  state  employees  retiring  on or after January first, nineteen
   12  hundred eighty-three who are enrolled in the statewide and supplementary
   13  health [insurance] BENEFIT plans shall be paid by  the  state.    Three-
   14  quarters of the cost of premium or subscription charges for the coverage
   15  of  dependents of such state employees and retired state employees shall
   16  be paid by the state. Except as provided in paragraph (b) of this subdi-
   17  vision, the state shall contribute toward the  premium  or  subscription
   18  charges for the coverage of each state employee or retired state employ-
   19  ee who is enrolled in an optional benefit plan and for the dependents of
   20  such  state  employee  or  retired state employee the same dollar amount
   21  which would be paid by the state for the premium or subscription charges
   22  for the coverage of such state employee or retired  state  employee  and
   23  his  or  her  dependents if he or she were enrolled in the statewide and
   24  the supplementary health [insurance] BENEFIT plans, but not in excess of
   25  the premium or subscription charges  for  the  coverage  of  such  state
   26  employee  or retired state employee and his or her dependents under such
   27  optional benefit plan. For purposes of this  subdivision,  employees  of
   28  the  state  colleges  of  agriculture,  home economics, industrial labor
   29  relations, and veterinary medicine, the  state  agricultural  experiment
   30  station at Geneva, and any other institution or agency under the manage-
   31  ment  and  control  of  Cornell  university as the representative of the
   32  board of trustees of the state university of New York, and employees  of
   33  the state college of ceramics under the management and control of Alfred
   34  university  as  the representative of the board of trustees of the state
   35  university of New York, shall be deemed  to  be  state  employees  whose
   36  salaries or compensation are paid directly by the state.
   37    2.  Each participating employer shall be required to pay not less than
   38  fifty percentum of the cost of premium or subscription charges  for  the
   39  coverage  of its employees and retired employees who are enrolled in the
   40  statewide only or the  statewide  and  comparable  supplementary  health
   41  [insurance]  BENEFIT  plans  established  pursuant to this article. Such
   42  employer shall be required to pay not less than thirty-five percentum of
   43  the cost of premium or subscription charges for the coverage  of  depen-
   44  dents  of  such  employees  and  retired  employees. Such employer shall
   45  contribute toward the premium or subscription charges for  the  coverage
   46  of  each  employee  or  retired  employee who is enrolled in an optional
   47  benefit plan and for the dependents of such employee or retired employee
   48  the same dollar amount which would be paid  by  such  employer  for  the
   49  premium  or  subscription  charges  for the coverage of such employee or
   50  retired employee and his or her dependents if he or she were enrolled in
   51  the statewide health [insurance] BENEFIT plan, but not in excess of  the
   52  premium  or  subscription  charges  for the coverage of such employee or
   53  retired employee and his or her dependents under such  optional  benefit
   54  plan.  Such employer shall not be required to pay the cost of premium or
   55  subscription  charges  for  the coverage of unpaid elected officials, or
   56  unpaid board  members  of  a  public  authority,  or  their  dependents,
       S. 6275                            12
    1  provided,  however  that  no  unpaid  board member of a public authority
    2  shall be eligible to participate in such [insurance] BENEFIT plan  until
    3  he  or  she has served in such position for at least six months. Subject
    4  to  such  regulations  as the president may prescribe, any participating
    5  employer may elect to pay higher rates of contribution for the  coverage
    6  of employees, retired employees and their dependents; provided, however,
    7  that if a participating employer elects to pay a higher or lower rate of
    8  contribution  for  its  retired  employees or their dependents, or both,
    9  than that paid by the state for its retired employees  or  their  depen-
   10  dents,  or both, amounts withheld from the retirement allowances of such
   11  retired employees for their share of premium or subscription charges, if
   12  any, shall, if the president so requires, be paid to such  participating
   13  employer which shall pay into the health insurance fund the full cost of
   14  premium or subscription charges for the coverage of such retired employ-
   15  ees  and  their  dependents.  Such  election  shall  be exercised by the
   16  adoption of a resolution by its governing body which, if required by law
   17  to be approved by  any  other  body  or  officer,  shall  have  been  so
   18  approved.
   19    4.  Upon  the  retirement,  on  or  after July first, nineteen hundred
   20  sixty-five, of a state employee whose salary  or  compensation  is  paid
   21  directly  by  the  state,  who  is subject to a plan established by law,
   22  rule, regulation, written order or written policy which provides for the
   23  regular earning and accumulation of sick leave, and who is  eligible  to
   24  continue  coverage  under  the  health  [insurance]  BENEFIT  plan after
   25  retirement, the department [of civil service] shall determine, based  on
   26  the  employee's  age at the time of retirement, the actuarial equivalent
   27  in monthly installments  for  the  remaining  life  expectancy  of  such
   28  retired  employee, of the dollar value of the earned and accumulated but
   29  unused sick leave standing to his OR HER credit at the time  of  retire-
   30  ment,  without interest. Such dollar value shall be based on the employ-
   31  ee's salary at the time of retirement. In addition to  regular  employer
   32  contributions,  contributions in the amount of such monthly installments
   33  shall be paid from the state's appropriation  to  the  health  insurance
   34  fund  and applied towards the charges for health [insurance] BENEFITS on
   35  account of such retired employee and  his  OR  HER  dependents,  to  the
   36  extent  necessary  to  pay  such  charges. The remaining amount, if any,
   37  necessary to pay such charges  shall  be  contributed  by  such  retired
   38  employee.  On or after October first, nineteen hundred seventy when such
   39  dollar value of such sick leave amounts to less than one hundred dollars
   40  for a particular retired employee, in lieu of contributions which  would
   41  otherwise  be  required  from such retired employee, additional contrib-
   42  utions shall be paid for the state's appropriation to the health  insur-
   43  ance  fund  and applied towards the charges for health [insurance] BENE-
   44  FITS on account of such retired employee and his OR HER dependents until
   45  the sum of such additional contributions equals  such  dollar  value  of
   46  such  sick  leave.  The  remaining amount, if any, necessary to pay such
   47  charges shall be contributed by such retired employee. For  purposes  of
   48  this  subdivision,  employees of the state colleges of agriculture, home
   49  economics, industrial labor  relations,  and  veterinary  medicine,  the
   50  state  agricultural experiment station at Geneva, and any other institu-
   51  tion or agency under the management and control of Cornell university as
   52  the representative of the board of trustees of the state  university  of
   53  New  York,  and  employees  of  the  state college of ceramics under the
   54  management and control of Alfred university as the representative of the
   55  board of trustees of the state university of New York, shall  be  deemed
       S. 6275                            13
    1  to be state employees whose salaries or compensation is paid directly by
    2  the state.
    3    5.  Subject  to  such  regulations as the president may prescribe, any
    4  participating  employer  may  elect  to  make  additional  contributions
    5  towards  charges  for  health [insurance] BENEFIT coverage on account of
    6  its retired employees and their dependents, based on the dollar value of
    7  their sick leave accumulated but unused at the time of retirement.  Such
    8  election  shall  apply  to employees in the service of the participating
    9  employer who retire on or after the effective date of such election, who
   10  are subject to a plan established  by  law,  rule,  regulation,  written
   11  order or written policy which provides for the regular earning and accu-
   12  mulation  of sick leave, and who are eligible to continue coverage under
   13  the health [insurance] BENEFIT plan after retirement. The  participating
   14  employer  shall  certify to the department [of civil service] the dollar
   15  value of earned and accumulated but unused sick leave  standing  to  the
   16  credit  of  an employee at the time of his OR HER retirement. Additional
   17  contributions shall be paid by such participating employer  and  applied
   18  towards  charges  for  health  [insurance]  BENEFITS  on  account of its
   19  retired employees and their dependents in the same manner as provided in
   20  subdivision four of this section with respect to retired state employees
   21  and their dependents.
   22    S 8. Section 167-a of the civil service law, as added by  chapter  602
   23  of the laws of 1966, is amended to read as follows:
   24    S 167-a. Reimbursement  for  medicare  premium charges. Upon exclusion
   25  from the coverage of the health [insurance] BENEFIT plan of supplementa-
   26  ry medical insurance benefits for which an active or retired employee or
   27  a dependent covered by the health [insurance] BENEFIT plan is  or  would
   28  be  eligible  under the federal old-age, survivors and disability insur-
   29  ance program, an amount equal to the premium charge for such  supplemen-
   30  tary  medical insurance benefits for such active or retired employee and
   31  his OR HER dependents, if any, shall be paid monthly or at other  inter-
   32  vals  to such active or retired employee from the health insurance fund.
   33  Where appropriate, such amount may be deducted from contributions  paya-
   34  ble  by  the  employee  or retired employee; or where appropriate in the
   35  case of a retired employee receiving a retirement allowance, such amount
   36  may be included with  payments  of  his  OR  HER  retirement  allowance.
   37  Employer contributions to the health insurance fund shall be adjusted as
   38  necessary to provide for such payments.
   39    S  9.  Section 168 of the civil service law, as amended by chapter 329
   40  of the laws of 1960, subdivisions 1 and 2 as amended by chapter  585  of
   41  the laws of 1968 and subdivision 3 as amended by chapter 198 of the laws
   42  of 1966, is amended to read as follows:
   43    S 168. Assessment  of certain costs.  1. If the salary or compensation
   44  of any officers and employees of the state is paid  from  a  special  or
   45  administrative  fund or funds, other than the state purposes fund or the
   46  local assistance fund of the general fund of the state  or  the  capital
   47  construction  fund  or  an  income  fund  of the state university or the
   48  mental hygiene services fund, such fund or funds shall be  charged,  and
   49  there  shall be paid therefrom as [hereinafter] provided IN THIS SECTION
   50  the employer's share of the premium for the coverage  of  such  officers
   51  and  employees under the health [insurance] BENEFIT plan. If the amounts
   52  appropriated or allocable from such special or  administrative  fund  or
   53  funds  are  insufficient for such purpose, the director of the budget is
   54  hereby authorized to allocate such additional sums  from  such  fund  or
   55  funds  as may be necessary therefor; provided, however, that no transfer
   56  shall be made between two or more of such funds. Such amounts  shall  be
       S. 6275                            14
    1  paid,  at  such  times  as  shall  be  required by the president, to the
    2  commissioner of taxation and finance and shall be credited to the health
    3  insurance fund to pay, or reimburse the health insurance  fund  for  the
    4  payment  of,  the  employer's  share of the premium for coverage of such
    5  officers and employees under the health [insurance] BENEFIT plan.
    6    2. If the salary or compensation of any officers and employees of  the
    7  state  is  payable from a special or administrative fund or funds, other
    8  than the state purposes fund or the local assistance fund of the general
    9  fund of the state or the capital construction fund or an income fund  of
   10  the  state  university  or  the  mental hygiene services fund, a propor-
   11  tionate share of the expenses of administration of  the  health  [insur-
   12  ance]  BENEFIT plan, on account of coverage of such officers and employ-
   13  ees,  shall  be  payable  from  such  fund  or  funds.  If  the  amounts
   14  appropriated  or  allocable  from such special or administrative fund or
   15  funds are insufficient for such purpose, the director of the  budget  is
   16  hereby  authorized  to  allocate  such additional sums from such [funds]
   17  FUND or funds as may be necessary therefor; provided, however,  that  no
   18  transfer  shall  be  made between two or more of such funds. The propor-
   19  tionate share of the expenses of administration of  the  health  [insur-
   20  ance]  BENEFIT  plan  chargeable  pursuant  to  this  subdivision to any
   21  special or administrative fund shall be determined by the president  and
   22  shall be payable at such times as may be fixed by him OR HER.  Such sums
   23  shall  be  payable to the commissioner of taxation and finance and shall
   24  be applied to the reimbursement of funds  previously  advanced  for  the
   25  expenses of administration of the health [insurance] BENEFIT plan.
   26    3. (a) If the salary or compensation of any justices, judges, officers
   27  and  employees  of  the  supreme court, surrogate's court, county court,
   28  family court, civil court of the city of New York, criminal court of the
   29  city of New York and district court in any county, officers and  employ-
   30  ees  of  the  office of probation for the courts of New York city is not
   31  paid in whole or in part from the treasury of the  state,  but  is  paid
   32  directly  from  the  treasury  of  a civil division, such civil division
   33  shall be required to pay the employer's share of the premium charges for
   34  the coverage of such justices, judges, officers and employees under  the
   35  state health [insurance] BENEFIT plan. The appropriate fiscal officer of
   36  such  civil  division shall deduct from the salary or wages paid to such
   37  justices, judges, officers and employees the sums required to be paid by
   38  them under such plan. Such deductions and the  corresponding  employer's
   39  share of premium charges shall be paid, at such times as required by the
   40  president,  to  the  commissioner  of  taxation and finance and shall be
   41  credited to the health insurance fund.
   42    (b) If the salary or compensation of  any  retired  justices,  judges,
   43  officers  and  employees of the supreme court, surrogate's court, county
   44  court, family court, civil court of the city of New York, criminal court
   45  of the city of New York and district court in any county,  officers  and
   46  employees  of  the  office  of probation for the courts of New York city
   47  prior to retirement was not paid in whole or in part from  the  treasury
   48  of  the  state  but was paid directly from the treasury of a civil divi-
   49  sion, such civil division shall be required to pay the employer's  share
   50  of  the premium charges for the coverage of such retired justices, judg-
   51  es, officers and employees under the state  health  [insurance]  BENEFIT
   52  plan.  If  such  retired  justices,  judges,  officers and employees are
   53  receiving retirement allowances from a pension  or  retirement  plan  or
   54  system  administered  by such civil division, the amounts required to be
   55  paid by such retired justices, judges, officers and employees  as  their
   56  share  of premium charges shall be deducted from their retirement allow-
       S. 6275                            15
    1  ances. Such deductions and the employer's share of premium charges shall
    2  be paid, at such times as required by the president, to the commissioner
    3  of taxation and finance and shall be credited to  the  health  insurance
    4  fund.
    5    (c) Any civil division required by this subdivision to pay the employ-
    6  er's  share of the premium charges for the coverage of active or retired
    7  justices, judges, officers and employees of the  supreme  court,  surro-
    8  gate's court, county court, family court, civil court of the city of New
    9  York,  criminal  court of the city of New York and district court in any
   10  county, officers and employees of the office of probation for the courts
   11  of New York city shall also be assessed and required to  pay  a  propor-
   12  tionate  share  of  the expenses of administration of the health [insur-
   13  ance] BENEFIT plan in such amounts and at such times  as  determined  by
   14  the  president.  Such sums shall be payable to the commissioner of taxa-
   15  tion and finance and shall be applied  to  the  reimbursement  of  funds
   16  previously  advanced  for  the  expenses of administration of the health
   17  [insurance] BENEFIT plan.
   18    S 10. Subdivisions 1 and 3 of section 161-a of the civil service  law,
   19  subdivision 1 as amended by chapter 302 of the laws of 1985 and subdivi-
   20  sion  3 as added by chapter 307 of the laws of 1979, are amended to read
   21  as follows:
   22    1. Where, and to the extent that, an agreement between the  state  and
   23  an  employee  organization  entered into pursuant to article fourteen of
   24  this chapter provides for health [insurance]  benefits,  the  president,
   25  after  receipt  of  written  directions  from  the  director of employee
   26  relations, shall implement the provisions of such  agreement  consistent
   27  with  the  terms  thereof  and to the extent necessary shall adopt regu-
   28  lations providing for the benefits to be thereunder provided. The presi-
   29  dent, with the approval of the director of the budget, may  extend  such
   30  benefits,  in  whole  or  in  part,  to  employees  not  subject  to the
   31  provisions of such agreement.
   32    3. There is hereby created a council on employee health  insurance  to
   33  supervise  the administration of changes to the health [insurance] BENE-
   34  FIT plan negotiated in collective negotiations and to provide continuing
   35  policy direction to  insurance  plans  administered  by  the  state  the
   36  provisions of any other law to the contrary notwithstanding. The council
   37  shall  consist  of  the president [of the civil service commission], the
   38  director of the division of the budget, and  the  director  of  employee
   39  relations.
   40    S  11.  Paragraph  (a)  of  subdivision  1  of section 11 of the civil
   41  service law, as amended by chapter 299 of the laws of 1968,  is  amended
   42  to read as follows:
   43    (a)  The  term  "expenses  of  administration" means the total cost of
   44  administration of the department [of civil service], excluding costs  of
   45  providing  services to municipalities and costs of administration of the
   46  health [insurance] BENEFIT plan, and excluding costs of special programs
   47  or activities of the department as may be determined by  the  president,
   48  subject  to  approval  of the director of the budget, which do not serve
   49  generally all state departments and agencies under the  jurisdiction  of
   50  the department;
   51    S  12.  Section 158 of the civil service law, as added by chapter 1047
   52  of the laws of 1973, subdivision 1 as amended by section 4 of part C  of
   53  chapter 56 of the laws of 2006, is amended to read as follows:
   54    S 158. Group  term  life  insurance plan and group accident and health
   55  [insurance] BENEFIT plan. 1. The president, subject to the provisions of
   56  this section, is hereby empowered to establish regulations relating  to,
       S. 6275                            16
    1  and  to  enter into and administer contracts providing for, a group term
    2  life insurance plan, and a group accident and health [insurance] BENEFIT
    3  plan on behalf of legislators, employees of the legislature hired on  an
    4  annual basis, judges and justices of the unified court system, and state
    5  employees  and  retired employees who, for the purposes of article four-
    6  teen of this chapter, have been for a period of time prescribed  by  the
    7  regulations  and,  except for such retirees, continue to be in positions
    8  designated as managerial or confidential positions.  The  president  may
    9  authorize  the  inclusion  in  the  plan  of  such employees and retired
   10  employees of other governments or public employers as defined in  subdi-
   11  vision [seven] SIX of section two hundred one of this chapter. The pres-
   12  ident  may  adopt  whatever  other regulations which may be necessary to
   13  fulfill the intentions of this section. No regulation shall be  adopted,
   14  repealed  or  amended,  and  no  other action taken with respect to such
   15  employees affecting the amount of, or eligibility for, benefits or rates
   16  of contribution under this section without the approval of the  director
   17  of employee relations.
   18    The full costs of any insurance program or programs established pursu-
   19  ant  to this subdivision, excluding administrative costs, shall be borne
   20  by insureds and retirees. Any interest earned by the moneys in the  life
   21  insurance  fund shall be added to such fund, become a part of such fund,
   22  be used for the purpose of such fund, and be  available  without  fiscal
   23  year limitation.
   24    2.  The  regulations of the president authorized by this section shall
   25  provide that the entire cost of premiums  or  subscription  charges  for
   26  coverage  under  the  insurance plans established pursuant to such regu-
   27  lations shall be borne by the employees  electing  such  coverage.  Such
   28  regulations  may  provide  for  the  allocation  of  any  administrative
   29  expenses, other than those of the insurer, among employers or  employees
   30  or retired employees participating in such coverage.
   31    S  13. Subdivision 1 of section 174 of the civil service law, as added
   32  by chapter 585 of the laws of 1998, is amended to read as follows:
   33    1. All persons who, as of the effective date of this article,  are  or
   34  shall  become  eligible  to  participate in the state health [insurance]
   35  BENEFIT plan established under article eleven of this chapter, shall  be
   36  eligible to participate in the long term care insurance plan established
   37  under  this  article.  The president shall adopt regulations prescribing
   38  the conditions under which an eligible individual may elect  to  partic-
   39  ipate in the long term care insurance plan.
   40    S  14.  The article heading of article 11 of the civil service law, as
   41  added by chapter 461 of the laws of 1956 and as  renumbered  by  chapter
   42  790 of the laws of 1958, is amended to read as follows:
   43    HEALTH [INSURANCE] BENEFITS FOR STATE AND RETIRED STATE EMPLOYEES
   44    S 15. Subparagraph (i) of paragraph f of subdivision 2 of section 5 of
   45  the  state finance law, as added by section 1 of part E of chapter 56 of
   46  the laws of 2000, is amended to read as follows:
   47    (i) in the unclassified service of the state and, notwithstanding  any
   48  other  provision  of law to the contrary, shall be designated managerial
   49  and, as such, eligible for  benefits  provided  by  subdivision  two  of
   50  section  eleven  and  subdivision  (a) of section twelve of chapter four
   51  hundred sixty of the laws of nineteen hundred  eighty-two,  as  amended;
   52  section  one  hundred  fifty-eight of the civil service law; eligible to
   53  participate in the state deferred compensation plan, the New York  state
   54  and  local  employees' retirement system; the health [insurance] BENEFIT
   55  plan for state employees; and subject to coverage under sections  seven-
   56  teen and eighteen of the public officers law, or
       S. 6275                            17
    1    S  16.  Subdivisions 1 and 3 of section 99-c of the state finance law,
    2  as added by chapter 55 of the laws of  1977,  are  amended  to  read  as
    3  follows:
    4    1. In the event a county, city, town, village or school district which
    5  has  elected  to  receive  distribution or distributions from the health
    6  insurance reserve receipts fund, pursuant to an agreement  between  such
    7  municipality  or  school district and the state and which has elected to
    8  terminate its contractual agreement for health [insurance] BENEFITS with
    9  the New York state department of civil service, or if called upon by the
   10  New York state department of civil service, pursuant to such  agreement,
   11  to  return such distribution within the time period and under the condi-
   12  tions specified in such agreement, shall be in default of its obligation
   13  to repay such distribution, the allotment, apportionment, and payment of
   14  local assistance aid, education aid or other state  aid  as  appropriate
   15  and as determined by the comptroller shall be withheld by the state upon
   16  the following terms and conditions.
   17    3. Notwithstanding any inconsistent provisions of law, the comptroller
   18  shall  establish  a  fund,  to  be  called  the health insurance reserve
   19  receipts fund, to receive transfers of funds from the  health  insurance
   20  carriers of the New York state employee health [insurance] BENEFIT plan,
   21  pursuant  to  contractual  agreements  between such carriers and the New
   22  York state department of civil service and/or from the health  insurance
   23  fund.  Moneys  returned  by  the  municipalities and school districts or
   24  withheld from state  aid  by  the  comptroller  pursuant  to  provisions
   25  governing  termination  of the contractual agreements shall be deposited
   26  in this fund. Disbursements from the health insurance  reserve  receipts
   27  fund  shall be for the purpose of returning to participating governments
   28  and school districts the appropriate share of moneys  remitted  by  such
   29  health  insurance  carriers  and/or  for the purpose of remitting to the
   30  carriers any moneys due them as a result of termination of  the  state's
   31  contract  with  the  carriers  or  termination of agreements between the
   32  state and municipalities and school districts and/or for the purpose  of
   33  transferring funds to the health insurance fund. Disbursements from such
   34  fund  shall  be  made  pursuant  to  the procedures for authorization of
   35  expenditures contained in article [XI] ELEVEN of the civil  service  law
   36  upon  the  issuance  of a certificate of approval of availability by the
   37  director of the budget and subject to audit and  warrant  of  the  comp-
   38  troller.
   39    S  17.  Subdivision  2  of  section  9.09 of the parks, recreation and
   40  historic preservation law is amended to read as follows:
   41    2. For the purposes of eligibility  for  participation  in  the  state
   42  health  [insurance]  BENEFIT  plan  under  article  eleven  of the civil
   43  service law and for survivor's benefits for  active  and  retired  state
   44  employees  [as  provided  by  sections  one  hundred  fifty-four and one
   45  hundred fifty-five of the civil service law], employees of  the  commis-
   46  sion, to the extent to which the compensation paid for their services is
   47  derived  from  funds  appropriated  by this state, shall be deemed to be
   48  employees of this state and qualified for such participation  and  bene-
   49  fits.  For the purpose of determining their rights under the [workmen's]
   50  WORKERS' compensation law of this state,  employees  of  the  commission
   51  employed  wholly or partly in this state shall be deemed to be employees
   52  of this state provided, however, that the amount  of  any  payment  made
   53  under  such  compensation  law to an employee of the commission employed
   54  only partly in this state shall be only in such proportion as the amount
   55  of his OR HER salary paid by the state of New York shall bear to his  OR
   56  HER total salary.
       S. 6275                            18
    1    S 18. This act shall take effect immediately.
    2                                   PART E
    3    Section 1. Paragraph (i) of subdivision 1 of section 6 of section 1 of
    4  part  D3  of  chapter  62  of  the laws of 2003 constituting the tobacco
    5  settlement financing corporation act is amended to read as follows:
    6    (i) The corporation shall have power and  is  hereby  authorized  from
    7  time  to  time  to  issue its bonds in an aggregate principal amount not
    8  exceeding   four   billion,   [two]   NINE   hundred   million   dollars
    9  [($4,200,000,000)]  ($4,900,000,000)  plus  the  amount of any financing
   10  costs, to provide sufficient funds for achieving its corporate  purpose,
   11  consisting  of  the  purchase  of  all or a portion of the state's share
   12  pursuant to section four of this act and the payment  or  provision  for
   13  financing  costs.    The  foregoing  limitation shall not apply to bonds
   14  issued to refund bonds.  Provided, however, that no bonds may be  issued
   15  pursuant  to  the authority and power granted by this section, except an
   16  issue of bonds in an amount not to exceed seven hundred million  dollars
   17  ($700,000,000)  plus the amount of any applicable financing costs, until
   18  the state comptroller shall determine that legislative  passage  of  the
   19  budget has occurred for the current state fiscal year in accordance with
   20  the  provisions  of  subdivision  3 of section 5 of the legislative law.
   21  Provided, further, no bonds, other than refunding bonds, shall be issued
   22  pursuant to such authority and power on or after [July 1, 2004] APRIL 1,
   23  2011.
   24    S 2. This act shall take effect immediately.
   25                                   PART F
   26    Section 1. Chapter 43 of the laws of 1922 relating to the  development
   27  of the port of New York is amended by adding a new section 18 to read as
   28  follows:
   29    S  18.  NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE PORT
   30  AUTHORITY IS HEREBY AUTHORIZED TO CONTRIBUTE TWO HUNDRED MILLION DOLLARS
   31  TO THE STATE TREASURY TO THE CREDIT OF THE GENERAL FUND.
   32    S 2. This act shall take effect upon the enactment  into  law  by  the
   33  state  of  New  Jersey of legislation having an identical effect; but if
   34  the state of New Jersey shall have  already  enacted  such  legislation,
   35  then  this act shall take effect immediately and provided that the state
   36  of New Jersey shall notify the legislative bill drafting the  commission
   37  upon  the  occurrence of the enactment of the provisions provided for in
   38  this act in order that the commission may maintain an accurate and time-
   39  ly effective data base of the official text of the laws of the state  of
   40  New York in furtherance of effecting the provisions of section 44 of the
   41  legislative law and section 70-b of the public officers law.
   42                                   PART G
   43    Section  1. Subdivision b of section 1617-a of the tax law, as amended
   44  by section 2 of part Z3 of chapter 62 of the laws of 2003, is amended to
   45  read as follows:
   46    b. [Video] THE HOURS OF OPERATION OF VIDEO lottery gaming  shall  only
   47  be  permitted [for no more than sixteen consecutive hours per day and on
   48  no day shall such operation be conducted past 2:00 a.m] AS PRESCRIBED BY
   49  THE DIVISION OF THE LOTTERY.
       S. 6275                            19
    1    S 2. This act shall take effect immediately; provided that the  amend-
    2  ments  to subdivision b of section 1617-a of the tax law made by section
    3  one of this act shall not affect the repeal of such section and shall be
    4  deemed repealed therewith.
    5                                   PART H
    6    Section  1.  Section 19-0323 of the environmental conservation law, as
    7  added by chapter 629 of the laws of 2006, is amended to read as follows:
    8  S 19-0323. Use of ultra low sulfur diesel fuel and best available  tech-
    9               nology by the state.
   10    1. As used in this section, the terms:
   11    a.  "Ultra  low  sulfur  diesel  fuel" means diesel fuel having sulfur
   12  content of 0.0015 per cent of sulfur or less.
   13    b. "Heavy duty vehicle" or "vehicle" means any on and off-road vehicle
   14  powered by diesel fuel and having a gross vehicle weight of greater than
   15  8,500 pounds, except that those vehicles defined in section 101  of  the
   16  vehicle  and traffic law, paragraph 2 of schedule E and paragraph (a) of
   17  schedule F of subdivision 7 of section 401 of  such  law,  and  vehicles
   18  specified  in  subdivision  13 of section 401 of such law, and farm type
   19  tractors and all terrain type vehicles used exclusively for agricultural
   20  or mowing purposes, or for snow  plowing,  other  than  for  hire,  farm
   21  equipment,  including  self-propelled machines used exclusively in grow-
   22  ing, harvesting or handling farm produce, and self-propelled caterpillar
   23  or crawler-type equipment while being operated on the contract site, and
   24  timber harvesting equipment such as harvesters, wood chippers,  forward-
   25  ers,  log  skidders, and other processing equipment used exclusively off
   26  highway for timber harvesting and logging purposes, shall not be  deemed
   27  heavy  duty  vehicles for purposes of this section.  This term shall not
   28  include vehicles that are specially equipped for emergency  response  by
   29  the  department, office of emergency management, sheriff's office of the
   30  department of finance, police department or fire department.
   31    c. "Best available retrofit technology" means technology, verified  by
   32  the United States environmental protection agency for reducing the emis-
   33  sion  of pollutants that achieves reductions in particulate matter emis-
   34  sions at the highest classification level for  diesel  emission  control
   35  strategies  that is applicable to the particular engine and application.
   36  Such technology shall also, at a reasonable cost, achieve  the  greatest
   37  reduction  in  emissions  of  nitrogen oxides at such particulate matter
   38  reduction level and shall in no event result in a net  increase  in  the
   39  emissions of either particulate matter or nitrogen oxides.
   40    d.  "Reasonable cost" means that such technology does not cost greater
   41  than 30 percent more than other technology applicable to the  particular
   42  engine  and  application that falls within the same classification level
   43  for diesel emission control strategies, as set forth in paragraph  c  of
   44  this  subdivision,  when  considering  the cost of the strategies, them-
   45  selves, and the cost of installation.
   46    E. "USEFUL LIFE" MEANS THE PERIOD OF  PROBABLE  USEFULNESS  FOR  WHICH
   47  INDEBTEDNESS  WAS  INCURRED  FOR  A VEHICLE AS ESTABLISHED IN APPLICABLE
   48  STATE FINANCE LAW OR LOCAL FINANCE LAW,  REFLECTED  IN  THE  PERIOD  FOR
   49  WHICH INDEBTEDNESS WAS INCURRED BY THE OWNER OF THE VEHICLE.
   50    2. Any diesel powered heavy duty vehicle that is owned by, operated by
   51  or  on  behalf  of,  or  leased by a state agency and state and regional
   52  public authority shall be powered by ultra low sulfur diesel fuel.
   53    3. Any diesel powered heavy duty vehicle that is owned by, operated by
   54  or on behalf of, or leased by a state  agency  and  state  and  regional
       S. 6275                            20
    1  public  authority with more than half of its governing body appointed by
    2  the governor shall utilize the best available  retrofit  technology  for
    3  reducing  the  emission of pollutants. The commissioner shall promulgate
    4  regulations for the implementation of this subdivision specifying proce-
    5  dures for compliance according to the following schedule:
    6    a. Not less than 33% of the vehicles covered by this subdivision shall
    7  have best available retrofit technology on or before December 31, 2008.
    8    b. Not less than 66% of the vehicles covered by this subdivision shall
    9  have  best available retrofit technology on or before December 31, 2009;
   10  PROVIDED THAT SUCH VEHICLES ARE NOT WITHIN THREE YEARS  OF  THE  END  OF
   11  THEIR  USEFUL  LIFE  AND SHALL CEASE TO BE OPERATED UPON THE END OF SUCH
   12  USEFUL LIFE.
   13    c. [All] THE REMAINDER OF vehicles covered by this  subdivision  shall
   14  have  best available retrofit technology on or before December 31, 2010;
   15  PROVIDED THAT SUCH VEHICLES ARE NOT WITHIN THREE YEARS  OF  THE  END  OF
   16  THEIR  USEFUL  LIFE  AND SHALL CEASE TO BE OPERATED UPON THE END OF SUCH
   17  USEFUL LIFE. PROVIDED FURTHER THAT ALL VEHICLES COVERED BY THIS SUBDIVI-
   18  SION SHALL HAVE BEST AVAILABLE RETROFIT TECHNOLOGY ON OR BEFORE DECEMBER
   19  31, 2012.
   20    This subdivision shall not apply to any vehicle subject to a lease  or
   21  public  works  contract  entered  into or renewed prior to the effective
   22  date of this section.
   23    4. In addition to other provisions for regulations  in  this  section,
   24  the commissioner shall promulgate regulations as necessary and appropri-
   25  ate to carry out the provisions of this act including but not limited to
   26  provision  for waivers upon written finding by the commissioner that (a)
   27  best available retrofit technology for reducing the emissions of  pollu-
   28  tants  as required by subdivision 3 of this section is not available for
   29  a particular vehicle or class of vehicles and (b) that ultra low  sulfur
   30  diesel fuel is not available.
   31    5. This section shall not apply where federal law or funding precludes
   32  the state from imposing the requirements of this section.
   33    6. On or before January 1, 2008 and every year thereafter, the commis-
   34  sioner  shall report to the governor and legislature on the use of ultra
   35  low sulfur diesel fuel and the use of the best available retrofit  tech-
   36  nology as required under this section. The information contained in this
   37  report  shall  include, but not be limited to, for each state agency and
   38  public authority covered by this section: (a) the total number of diesel
   39  fuel-powered motor vehicles owned or operated by such agency and author-
   40  ity; (b) the number of such motor vehicles that were  powered  by  ultra
   41  low  sulfur  diesel  fuel;  (c)  the total number of diesel fuel-powered
   42  motor vehicles owned or operated by such agency and authority  having  a
   43  gross vehicle weight rating of more than 8,500 pounds; (d) the number of
   44  such  motor vehicles that utilized the best available retrofit technolo-
   45  gy, including a breakdown by motor vehicle model, engine  year  and  the
   46  type  of  technology used for each vehicle; (e) the number of such motor
   47  vehicles that are equipped with an engine certified  to  the  applicable
   48  2007 United States environmental protection agency standard for particu-
   49  late matter as set forth in section 86.007-11 of title 40 of the code of
   50  federal  regulations  or  to  any subsequent United States environmental
   51  protection agency standard for particulate matter that is  at  least  as
   52  stringent; and (f) all waivers, findings, and renewals of such findings,
   53  which,  for each waiver, shall include, but not be limited to, the quan-
   54  tity of diesel fuel needed to power diesel fuel-powered  motor  vehicles
   55  owned  or  operated  by  such agency and authority; specific information
   56  concerning the availability of ultra low sulfur diesel fuel.
       S. 6275                            21
    1    7. The department shall, to the extent  practicable,  coordinate  with
    2  regions  which  have  proposed or adopted heavy duty emission inspection
    3  programs to promote regional consistency in such programs.
    4    S 2. This act shall take effect immediately.
    5                                   PART I
    6    Section  1.  This  act  shall be known and may be cited as the "annual
    7  spending growth cap act".
    8    S 2. The state finance law is amended by adding a new  article  17  to
    9  read as follows:
   10                                 ARTICLE 17
   11                       ANNUAL SPENDING GROWTH CAP ACT
   12  SECTION 250. DEFINITIONS.
   13          251. ESTABLISHMENT OF ANNUAL SPENDING GROWTH CAP.
   14          252. PROVISIONS REGARDING DECLARATION OF EMERGENCY.
   15    S 250. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
   16  HAVE THE FOLLOWING MEANINGS, UNLESS OTHERWISE SPECIFIED:
   17    1.  "ANNUAL SPENDING GROWTH CAP" SHALL MEAN A PERCENTAGE DETERMINED BY
   18  ADDING THE INFLATION RATES FROM EACH OF THE FOUR  CALENDAR  YEARS  IMME-
   19  DIATELY PRIOR TO THE COMMENCEMENT OF A GIVEN FISCAL YEAR AND THEN DIVID-
   20  ING THAT SUM BY FOUR.
   21    2. "STATE OPERATING FUNDS SPENDING" SHALL MEAN ANNUAL DISBURSEMENTS OF
   22  ALL GOVERNMENTAL FUND TYPES INCLUDED IN THE CASH-BASIS FINANCIAL PLAN OF
   23  THE  STATE,  EXCLUDING  DISBURSEMENTS  FROM  FEDERAL  FUNDS  AND CAPITAL
   24  PROJECT FUNDS.
   25    3. "INFLATION RATE" SHALL MEAN THE PERCENTAGE  CHANGE  IN  THE  TWELVE
   26  MONTH  AVERAGE  OF  THE  CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS AS
   27  PUBLISHED BY THE UNITED STATES DEPARTMENT  OF  LABOR,  BUREAU  OF  LABOR
   28  STATISTICS OR ANY SUCCESSOR AGENCY FOR A GIVEN CALENDAR YEAR COMPARED TO
   29  THE PRIOR CALENDAR YEAR.
   30    4.  "EXECUTIVE BUDGET" SHALL MEAN THE BUDGET SUBMITTED ANNUALLY BY THE
   31  GOVERNOR PURSUANT TO SECTION ONE OF ARTICLE VII OF THE  STATE  CONSTITU-
   32  TION.
   33    5.  "STATE  BUDGET AS ENACTED" SHALL MEAN THE BUDGET ACTED UPON BY THE
   34  LEGISLATURE IN A GIVEN FISCAL YEAR, AS SUBJECT TO SECTION FOUR OF  ARTI-
   35  CLE VII OF THE STATE CONSTITUTION AND SECTION SEVEN OF ARTICLE IV OF THE
   36  STATE CONSTITUTION.
   37    6.  "EMERGENCY" SHALL MEAN AN EXTRAORDINARY, UNFORESEEN, OR UNEXPECTED
   38  OCCURRENCE, OR COMBINATION OF CIRCUMSTANCES, INCLUDING BUT  NOT  LIMITED
   39  TO A NATURAL DISASTER, INVASION, TERRORIST ATTACK, OR ECONOMIC CALAMITY.
   40    S 251. ESTABLISHMENT OF ANNUAL SPENDING GROWTH CAP. 1. THERE IS HEREBY
   41  ESTABLISHED AN ANNUAL SPENDING GROWTH CAP.
   42    2.  THE  GOVERNOR  SHALL NOT SUBMIT, AND THE LEGISLATURE SHALL NOT ACT
   43  UPON, A BUDGET THAT CONTAINS A PERCENTAGE INCREASE OVER THE PRIOR FISCAL
   44  YEAR IN STATE OPERATING FUNDS SPENDING WHICH EXCEEDS THE ANNUAL SPENDING
   45  GROWTH CAP.
   46    3. THE GOVERNOR SHALL CERTIFY IN WRITING THAT  STATE  OPERATING  FUNDS
   47  SPENDING  IN  THE  EXECUTIVE  BUDGET DOES NOT EXCEED THE ANNUAL SPENDING
   48  GROWTH CAP. IF FINAL INFLATION RATE DATA FOR THE PRIOR CALENDAR YEAR  IS
   49  NOT  YET AVAILABLE AT THE TIME THE GOVERNOR SUBMITS HIS OR HER EXECUTIVE
   50  BUDGET, HE OR SHE SHALL FURNISH A  REASONABLE  ESTIMATE  OF  SUCH  PRIOR
   51  CALENDAR YEAR INFLATION RATE.
   52    4.  THE  COMPTROLLER  SHALL PROVIDE, WITHIN FIVE DAYS OF ACTION BY THE
   53  LEGISLATURE UPON THE BUDGET, A DETERMINATION AS  TO  WHETHER  THE  STATE
       S. 6275                            22
    1  OPERATING  FUNDS  SPENDING  AS  SET FORTH IN THE STATE BUDGET AS ENACTED
    2  EXCEEDS THE ANNUAL SPENDING GROWTH CAP.
    3    5. IF THE COMPTROLLER FINDS THAT STATE OPERATING FUNDS SPENDING AS SET
    4  FORTH  IN THE STATE BUDGET AS ENACTED EXCEEDS THE ANNUAL SPENDING GROWTH
    5  CAP, THE GOVERNOR AND THE STATE LEGISLATURE SHALL TAKE CORRECTIVE ACTION
    6  TO ENSURE THAT FUNDING IS LIMITED TO THE AMOUNT OF THE  ANNUAL  SPENDING
    7  CAP.
    8    S  252. PROVISIONS REGARDING DECLARATION OF EMERGENCY. 1. UPON A FIND-
    9  ING OF AN EMERGENCY BY THE GOVERNOR, HE OR SHE MAY DECLARE AN  EMERGENCY
   10  BY  AN EXECUTIVE ORDER WHICH SHALL SET FORTH THE REASONS FOR SUCH DECLA-
   11  RATION.
   12    2. BASED UPON SUCH DECLARATION,  THE  GOVERNOR  MAY  SUBMIT,  AND  THE
   13  LEGISLATURE MAY AUTHORIZE A BUDGET CONTAINING A PERCENTAGE INCREASE OVER
   14  THE PRIOR FISCAL YEAR IN STATE OPERATING FUNDS SPENDING THAT EXCEEDS THE
   15  ANNUAL SPENDING GROWTH CAP.
   16    S 3. This act shall take effect immediately.
   17                                   PART J
   18    Section  1.  The  legislature finds and declares that in order for the
   19  state to address its financial deficit, the structure  and  organization
   20  of  current governmental agencies must be reviewed. A careful assessment
   21  and analysis of the state's current governmental structure could  reveal
   22  areas  in which savings for the taxpayers of the state of New York could
   23  be achieved. Such savings will allow the state to position itself for  a
   24  faster and more complete recovery from the current economic downturn. In
   25  addressing  the  aforementioned  matter,  the issues under review should
   26  include, but not be limited to:
   27    (1) Economies of scale;
   28    (2) Efficient use of resources;
   29    (3) Combination and consolidation within functional areas;
   30    (4) Combination and consolidation within geographical areas; and
   31    (5) Review of best practices.
   32    S 2. (a) A legislative commission  on  governmental  restructuring  is
   33  hereby  created  to conduct the examination and analysis as described in
   34  section one of this act, and recommend the best  course  of  action  for
   35  reorganizing the government of the state.
   36    (b)  The  commission  shall  consist  of twelve members, each shall be
   37  appointed for a term of one hundred  eighty  days,  consisting  of  four
   38  members appointed by the temporary president of the senate, four members
   39  appointed  by  the speaker of the assembly, two members appointed by the
   40  minority leader of the senate, and two members appointed by the minority
   41  leader of the assembly.
   42    (c) The commission may meet within and without the state,  shall  hold
   43  public  hearings, and shall have all the powers of a legislative commit-
   44  tee pursuant to the legislative law.
   45    (d) The members of the commission shall receive  no  compensation  for
   46  their services, but shall be allowed their actual and necessary expenses
   47  incurred in the performance of their duties pursuant to this act.
   48    (e)  To  the maximum extent feasible, the commission shall be entitled
   49  to request and receive and shall  utilize  and  be  provided  with  such
   50  facilities,  resources,  and  data  of  any court, department, division,
   51  office, board, bureau, commission, or agency of the state or  any  poli-
   52  tical subdivision thereof as it may reasonably request to properly carry
   53  out its powers and duties pursuant to this act.
       S. 6275                            23
    1    (f) The appointing authorities shall appoint the members of the legis-
    2  lative  commission  on  governmental  restructuring on or before fifteen
    3  days after this act shall have  become  law  and  the  commission  shall
    4  convene its first meeting on or before fifteen days thereafter.
    5    (g) The commission shall issue a report to the governor, the temporary
    6  president of the senate, the speaker of the assembly, the minority lead-
    7  er  of  the senate, and the minority leader of the assembly of its find-
    8  ings, conclusions, and recommendations on or before December 31, 2009.
    9    S 3. This act shall take effect immediately and shall  expire  and  be
   10  deemed repealed March 31, 2010.
   11    S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
   12  sion,  section  or  part  of  this act shall be adjudged by any court of
   13  competent jurisdiction to be invalid, such judgment  shall  not  affect,
   14  impair,  or  invalidate  the remainder thereof, but shall be confined in
   15  its operation to the clause, sentence, paragraph,  subdivision,  section
   16  or part thereof directly involved in the controversy in which such judg-
   17  ment shall have been rendered. It is hereby declared to be the intent of
   18  the  legislature  that  this  act  would  have been enacted even if such
   19  invalid provisions had not been included herein.
   20    S 3. This act shall take effect immediately  provided,  however,  that
   21  the  applicable effective date of Parts A through J of this act shall be
   22  as specifically set forth in the last section of such Parts.
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