Transfers powers of the canal corporation to the office of parks, recreation and historic preservation; repealer

Section three amends chapter 335 of the laws of 2001, transferring the powers and duties of the canal corporation to the office.

Section four amends section 6 of the canal law, as added by chapter 766 of the laws of 1992 to provide the transfer of canal lands and other assets including; land, state assets, equipment and property.

Section five amends the subdivisions 1 and 3 of section 55 of the canal law, as amended by chapter 335 of the laws of 2001 to read that leases, of canal lands, canal terminals and canal terminal lands shall be for purposes which are consistent with the New York state recreation way.

Section six proves that the chairperson of the commission shall be the commissioner of the office.

Section seven provide guidance to the office with respect to managing water levels in reservoirs to provide water to the canal system.

Section eight defines the New York State Canal System, the Tappan Zee Ferry service and the thruway system.

Section nine defines the transfer, promotion and seniority of officers and employees.

Section ten authorizes contracts and agreements with any privet person or corporation or with the state or local governments or with other public corporations.

Section twelve states that sections 382 and 383 of the public authorities law are REAPELED.

Section thirteen defines corporation.

Section fourteen defines procurement contract.

Section fifteen defines thruway authority employees.

Section sixteen defines parks, recreation and historical preservation employees.

Section seventeen repeals the canal law.

Section eighteen amends subdivisions 2 and 5 of section 92-u of the state finance law, subdivision 2 as added by chapter 766 of the laws

of 1992 to provide such fund shall consist of all revenues received from the operation of the New York state canal system.

Section nineteen amends chapter 766 of the laws of 1992 to provide that the authority shall have the power to its negotiable notes and bonds in conformity with applicable provisions of the uniform commercial code.

Section twenty give the effective date.

Justification

The maintenance of the State canal system has been a financial burden for the Thruway Authority and is the major reason that Thruway tolls are increasing. This legislation would allow the Thruway Authority to discontinue their financial commitment to the State's canal system, and pass along an estimated $80 million dollars a year in savings onto residents by reducing current toll prices on the Thruway.

Under the legislation, the canals would become part of the State's Parks system. Upkeep and maintenance of the canals would be funded through the budget of the New York State Office of Parks, Recreation and Historic Preservation as well through the collection of fees to use the canals.

The Thruway Authority does not receive state funding for the maintenance and operation of the New York State Thruway; the Authority relies solely on the collection of tolls to fund expenses. Since 1992, the Canal Corporation has functioned as a department within the Thruway Authority, causing a significant financial burden for the Thruway Authority. The legislation would allow the Thruway Authority to withdraw their funding of the canal system, reducing the need for Thruway toll increases.

The canal system remains a major tourism and recreational attraction for New Yorkers and visitors to the State. Under the State Office of Parks, Recreation and Historical Preservation, the canal system would remain fully funded for operation and upkeep. In keeping with current State Park policy, fees could be charged for use of the canals by boaters

Legislative history

S.7586 of 2007/2008

Fiscal implications

Savings of an estimated $80 million to the New York State taxpayers.

Effective date

This act shall take effect on the one hundred eightieth day after it shall become law.