Enacts major components of legislation necessary to implement the transportation, economic development and environmental conservation budget for 2011-2012

chapter 645 of the laws of 2006 amending the economic development law and other laws relating to reauthorizing the power authority of the state of New York to make contributions to the general fund, in relation to extending the expiration of the power for jobs program and the energy cost savings benefit program; to amend chapter 477 of the laws of 2009, amending the public authorities law relating to energy efficiency and clean energy initiatives of the power authority of the state of New York, in relation to making such provisions permanent and to repeal subdivision 16 of section 1005 of the public authorities law relating to energy audits (Part CC); in relation to the New York state urban development corporation submitting a comprehensive financial plan to the director of the budget and the establishment of accounts and subaccounts within the treasury of such corporation; and providing for the repeal of such provisions upon the expiration thereof (Part DD); and to amend the New York state urban development corporation act, in relation to the new markets tax credits; and providing for the repeal of such provision upon expiration thereof (Part EE)

Purpose

To allow for the consolidation of certain state entities.

Summary

Part A - Provide the annual authorization for the Consolidated Local Street and Highway Improvement Program (CIDPS) and Marchiselli programs. The Legislature concurs with the Executive's proposal to provide annual authorization for the Consolidated Highway Improvement Program (CHIPS) at $363.1 million and for the Marchiselli program at $39.7 million, for a total of $402.8 million. The Senate also concurs with the Executive's proposal to permit CHIPS funding to be used for four specific road resurfacing options until March 31, 2012.

Part B - Permanently extend Department of Transportation Single Audit Program. The Legislature concurs with the Executive's proposal to make permanent the Single Audit Program, which was first established in 1998.

Part C - Permanently extend suspension of drivers' licenses for certain alcohol-related charges. The Legislature concurs with the Executive's proposal to make permanent provisions of New York law that impose penalties required by Federal law for driving while intoxicated.

Part D - Permanently extend suspension/revocation of drivers' licenses for certain drug-related offenses. The Legislature concurs with the Executive's proposal to make permanent provisions of New York law that impose penalties required by Federal law for drug-related convictions.

Part E - Make permanent provisions relating to the Motor Vehicle Financial Security Act. The Senate concurs with the Executive's proposal to make permanent certain provisions relating to the Motor Vehicle Financial Security Act, which require motorists to maintain vehicle insurance at all times as well as the related fines and penalties for noncompliance.

Part F - Conform the Vehicle and Traffic Law to Federal requirements, governing operators of commercial motor vehicles and medical certification requirements. This was intentionally omitted from the TED bill.

Part G - Make permanent the general loan powers of the New York State Urban Development Corporation. The Legislature amends the Executive proposal to authorize ESDC to issue loans for economic development projects extending this authorization for two years.

Part H - The Legislature accepts the Executive's proposal to increase the lifetime maximum per eligible business from $1 million to $2 million. It also increases the individual loan cap amount from $1 million to $2 million.

Part I - Extend the New York State Higher Education Capital Matching Grant Program. The Legislature concurs with the Executive's proposal to extend the HESC matching grant program.

Part J - Clarify the State Governmental Cost Recovery System. The Legislature accepts the Executive's proposal to increase from $55 million to $60 million the cost recovery by the state from public authorities. The Senate further accepted the Executive's proposal to repeal such cost recovery from Industrial Development Agencies (the IDA tax). The Senate separately has passed legislation which would retroactively repeal the tax, and urges that this proposal be expanded to encompass such a proposal.

Part K - Permanently establish the distribution formula for the Community Services Block Grant Program. The Legislature concurs with the Executive proposal.

Part L - Permanently establish the authority of the Secretary of State to charge increased fees for expedited handling of documents. The Legislature extended the ability for two years, rather than make this provision permanent.

Part M - Dissolve the Tug Hill Commission. The Senate denies the Executive's proposal to dissolve the Tug Hill Commission.

Part N - Eliminate the salary for the Chair of the State Athletic Commission. The Legislature rejects the Executive's proposal to eliminate the salary for the Chair of the State Athletic Commission.

Part 0 - Eliminate statutory references to the Governor's Office of Regulatory Reform. The Legislature accepts the Executive's proposal to eliminate statutory references to the Governor's Office of Regulatory Reform by allowing the deletion of references.

Part P - Authorize and direct the Comptroller to receive for deposit to the credit of the General Fund a payment of up to $913,000 from the New York State Energy Research and Development Authority. The Legislature concurs with the Executive's proposal to transfer $913,000 from the Unrestricted Corporate Funds of the Authority to the General Fund to offset New York State's debt service requirements related to the Western New York Nuclear Service Center.

Part Q - Authorize the New York State Energy Research and Development Authority to finance a portion of its research, development and demonstration, and policy and planning programs, and to finance the Department of Environmental Conservation climate change program, from assessments on gas and electric corporations. The Legislature accepts the Executive's proposal to finance a portion of the Authority's research, development and demonstration, and policy and planning programs, and to finance the Department of Environmental Conservation's Climate Change Program, through an annual assessment on gas and electric corporations.

Part R - Authorize the Department of Health to finance certain activities with revenues generated from an assessment on cable television companies. The Legislature accepts the Executive's proposal to make the Department of Health's public service education expenses eligible for funding from the Department of Public Service's assessment on cable television companies.

Part S - Make permanent the current time frames for review of pesticide product registration applications and pesticide product registration fees. The Legislature modifies the Executive's proposal to make the current time frames and fee structure for the review of pesticide product registration applications permanent by instead extending the registration fee for a period of three years beginning on July 1, 2011 and ending on July 1, 2014.

Part T - Authorize the Commissioner of Agriculture and Markets to establish a competitive grants program to fund agricultural research, marketing and education initiatives. The Legislature rejects the Executive's proposal to authorize the Commissioner of Agriculture and Markets to establish a competitive grants program for agricultural research, marketing and education initiatives, and this provision is intentionally omitted from the bill.

Part U - Implement key components of the Governor's Share NY Food initiative. The Legislature accepts the Executive's proposal to establish the "Share NY Food" initiative that would utilize available funds from the Upstate Agricultural Economic Development Fund, as well as federal funds, to improve farmers' market functions and expand access to fresh produce in underserved areas.

Part V - Repeal Article 4-A of the Navigation Law regarding reimbursements paid to certain governmental entities. The Legislature rejects the Executive proposal to eliminate reimbursements paid to

local governments that voluntarily implement various boating enforcement and safety programs under Article 4-A of the Navigation Law, and intentionally omits this provision from the TED Article VII bill.

Part W - Facilitate an efficient transfer of Tribal State Compact Revenue to the General Fund and make a technical correction to the distribution of the local share of such revenues associated with the Niagara Falls Casino to ensure that the formula is balanced.

Part X - Establish a surcharge on purses at harness and thoroughbred racetracks. The Legislature denies the Executive proposal to establish a surcharge on purses on New Yolk races. This is intentionally omitted from the Executive's TED Article VII bill.

Part Y - Extend the renewal period for certain disciplines licensed by the Department of State. The Legislature concurs with the Executive proposal to increase the time periods between licensure for certain disciplines.

Part Z - Authorize the Tax Modernization Project. This proposal is intentionally omitted from TED Article VII bill.

Part AA - Repeal Part LL of Chapter 59 of the Laws of 2009, which established the recreational marine fishing license; establishes a free registration system for saltwater recreational fishing in compliance with the federal Magnuson-Stevens Fishery Conservation and Management Reauthorization Act; provides reciprocity for anglers licensed or registered in adjacent states who fish on New York's marine boundary waters; and refunds the amount paid by any person who purchased a lifetime recreational marine fishing license less the established fee for a single license season.

Part BB - Alters the requirements with respect to Ultra Low Sulfur Diesel engines. The Legislature extends the time period of compliance for retrofitting heavy-duty diesel vehicles owned by State agencies or public authorities, as well as contractors, subcontractors and material suppliers who work on public job sites, with best available retrofit technology pursuant to the Diesel Emissions Reduction Act (DERA) of 2006 from December 31, 2010 to December 31, 2012.

Part CC - Creates a new permanent, 910 megawatt (MW), Recharge New York power program administered by the Power Authority of the State of New Yolk (NYPA) and the Economic Development Power Allocation Board (EDPAB) to foster job creation and retention in New York State. The new program would consist of a combination of NYPA hydropower and competitively purchased market power for allocation to eligible businesses and other entities located in the State. It would include reallocation of the hydroelectric power currently used by domestic and rural customers as well as ensure mitigation for cost impacts to these ratepayers.

Effective date

This act shall take effect immediately and shall expire and be deemed repealed 5 years after such effective date. This act shall take effect immediately provided, however, that the

applicable effective date of Parts A through EE of this act shall be as specifically set forth in the last section of such Parts.