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.