Enacts major components of legislation relating to issues deemed necessary to the state

This bill would provide the first major restructuring of the tax code in decades, additional relief for areas devastated by recent floods, including a grant program, and job retention credit, tax relief for small businesses and schools, and permit the use of "design build" for projects related to the State's physical infrastructure therefore reducing.costs and significantly shortening construction time. The

bill would also create the New York Youth Works Act Tax Credit program which provides tax incentives to qualified employers for hiring at-risk or disadvantaged youth in full or part time jobs.

Part A

Summary of provisions

Section 1 of this part would renumber paragraph (1) of subsection (a) of § 601 of the Tax Law to make it paragraph 1-a, and add a new paragraph 1 which establishes new tax rates for resident married individuals filing joint returns and resident surviving spouses for (1) the taxable years beginning after 2011 and before 2015, and (2) for taxable years beginning after 2014.

For taxable years beginning after 2011 and before 2015:

If the New York taxable income is: The tax is:

Not over $16,000 4% of taxable income Over $16,000 but not over $22,000 $640 plus 4.5% of excess over $16,000 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over $22,000 Over $26,000 but not over $40,000 $1,120 plus 5.90% of excess over $26,000 Over $40,000 but not over $150,000 $1,946 plus 6.45% of excess over $40,000 Over $150,000 but not over $300,000 $9,041 plus 6.65% of excess over $150,000 Over $300,000 but not over $2,000,000 $19,016 plus 6.85% of excess over $300,000 Over $2,000,000 $135,466 plus 8.82% of excess over $2,000,000

For taxable years beginning after 2014, the following brackets and dollar amounts shall apply, as adjusted by the cost of living adjustment prescribed in §601-a of the Tax Law for tax years 2013-2014:

If the New York taxable income is: The tax is:

Not over $16,000 4% of taxable income Over $16,000 but not over $22,000 $640 plus 4.5% of excess over $16,000 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over $22,000 Over $26,000 but not over $40,000 $1,120 plus 5.90% of excess over $26,000 Over $40,000 $1,946 plus 6.85% of excess over $40,000

Section 2 of this part would-amend § 601(a) (2) of the Tax Law so that it no longer applies to the taxable years beginning after 2011.

Section 3 of this part would amend § 601(b) of the Tax Law by renumbering paragraph 1 paragraph to make it 1-a and adding a new

paragraph 1, which sets tax rates for resident heads of households for (1) the taxable years beginning after 2011 and before 2015, and (2) for taxable years beginning after 2014.

For taxable years beginning after 2011 and before 2015:

If the New York taxable income is: The tax is:

Not over $12,000 4% of taxable income Over $12,000 but not over $16,500 $480 plus 4.5% of excess over $12,000 Over $16,500 but not over $19,500 $683 plus 5.25% of excess over $16,500 Over $19,500 but not over $30,000 $840 plus 5.90% of excess over $19,500 Over $30,000 but not over $100,000 $1,460 plus 6.45% of excess over $30,000 Over $100,000 but not over $250,000 $5,975 plus 6.65% of excess over $100,000 Over $250,000 but not over $1,500,000 $15,950 plus 6.85% of excess over $250,000 Over $1,500,000 $101,575 plus 8.82% of excess over $1,500,000

For taxable years beginning after 2014. the following brackets and dollar amounts shall apply, as adjusted by the cost of living adjustment prescribed in 601-a of the Tax Law for tax years 2013-2014:

If the New York taxable income is: The tax is:

Not over $12,000 4% of taxable income Over $12,000 but not over $16,500 $480 plus 4.5% of excess over $12,000 Over $16,500 but not over $19,500 $683 plus 5.25% of excess over $16,500 Over $19,500 but not over $30,000 $840 plus 5.90% of excess over $19,500 Over $30,000 $1,460 plus 6.85% of excess over $30,000

Section 4 of this part would amend § 601(b)(2) of the Tax Law so that it no longer applies to the taxable years beginning after 2011.

Section 5 of this part would renumber paragraph 1 of § 601(c) of the Tax Law to make it paragraph 1-a, and adds a new paragraph 1 which sets tax rates for resident unmarried individuals, resident married individuals filing separate returns, and resident estates and trusts for (1) the taxable years beginning after 2011 and before 2015, and (2) the taxable years beginning after 2014.

For the taxable years beginning after 2011 and before 2015:

If the New York taxable income is: The tax is:

Not over $8,000 4% of taxable income Over $8,000 but not over $11,000 $320 plus 4.5% of excess over $8,000 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over $11,000 Over $13,000 but not over $20,000 $560 plus 5.90% of excess over $13,000 Over $20,000 but not over $75,000 $973 plus 6.45% of excess over $20,000 Over $75,000 but not over $200,000 $4,521 plus 6.65% of excess over $75,000 Over $200,000 but not over $1,000,000 $12,833 plus 6.85% of excess over $200,000 Over $1,000,000 $67,633 plus 8.82% of excess over $1,000,000 For the taxable years beginning after 2014, the following brackets and dollar amounts shall apply. as adjusted by the cost of living adjustment prescribed in § 601-a of the Tax Law for tax years 2013-2014:

If the New York taxable income is: The tax is:

Not over $8,000 4% of taxable income Over $8,000 but not over $11,000 $320 plus 4.5% of excess over $8,000 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over $11,000 Over $13,000 but not over $20,000 $560 plus 5.90% of excess over $13,000 Over $20,000 $973 plus 6.85% of excess over $20,000

Section 6 of this part would amend the opening paragraph of 601(c)(2) of the Tax Law so that it no longer applies to the taxable years beginning after 2011.

Section 7 of this part would add a new subsection (d-1) to § 601 to add tax table benefit recapture provisions for taxable years beginning after 2011 and ending before 2015, for various types of taxpayers.

Section 8 of this part would add a new (d)(2) to § 601(d)(1) to provide tax table benefit recapture provisions for tax years beginning after 2014.

Section 9 of this part would amend the Tax Law by adding a new 601-a, which describes how to calculate cost of living adjustments for the 2013 and 2014 tax years and how to apply them.

Section 10 of this part would add a new subsection (f) to § 614 which provides that for the years after 2014 the standard deductions set forth in § 614 shall be adjusted by the cost of living adjustment established in § 601-a for tax years 2013-2014.

Section 11 authorizes the Commissioner of Taxation and Finance to promulgate withholding tables for 2012 by emergency regulation.

Section 12 of this part states that the act would take effect immediately.

Existing law

Article 22 of the Tax Law establishes the rates, manner and procedures for the payment, withholding and deductions as they pertain to New York State's personal income tax. Tax Law § 601 addresses the imposition of the tax.

Statement in support

The State's tax system is in need of reform, both as a matter of sound economic policy to promote growth, and as a matter of fundamental fairness. This part of the bill addresses that need.

Under the Tax Law, an individual in New York making $20,000 and a married couple with an annual income of $40,000, pay income tax at the same marginal rate as an individual making $20 million a year. Furthermore, the range between the lowest and highest marginal rates spans only 2.85 percent, so regardless of differences in income, New Yorkers pay tax at very similar rates.

It is imperative that this unfairness be remedied, and this part of the bill would do so as follows. First, it creates a set of tax brackets with a broader range of marginal rates, and applies those rates to more finely defined income groups, particularly in the middle income range. This range of rates will also include brackets for high earners. The more one makes, the higher the marginal rate assigned; those who have greater capacity will pay more tax.

These changes to the Tax Law are also part of a broader economic policy. Enabling middle class families to keep more of their money in their pockets is an important element of a multifaceted approach to facilitating our State's economic growth.

As a whole, this part of the bill would resolve longstanding fundamental unfairness in the New York Tax Law while advancing a sound economic policy that will stimulate the economy.

Legislative history

This is a new proposal.

Effective date

This proposal would take effect immediately.

Part B

Summary of provisions

Section 1 of this part would amend subsection (b) of section 800 of the Tax Law to exclude from the mobility tax: (1) employers with payroll expenses less than $312,500 per calendar quarter; and (2) eligible education institutions, which include any public school district, a board of cooperative educational services, a public

elementary or secondary school, a school approved pursuant to articles eighty-five or eighty-nine of the Education Law to serve students with disabilities of school age, or a nonpublic elementary or secondary school.

Section 2 of this part would amend subsection (a) of section 801 of the Tax Law to modify the tax rates beginning April 1, 2012, as follows:

* 0.11 percent for employers with quarterly payroll expenses no greater than $375,000

* 0.23 percent for employers with quarterly payroll expenses no greater than $437,500

* 0.34 percent for employers with quarterly payroll expenses in excess of $437,500

In addition, self-employed individuals with earnings attributable to the Metropolitan Commuter Transportation District ("MCTD") of $50,000 during the tax years beginning on January 1, 2012, would be excluded from the mobility tax.

Section 3 of this part provides that any reductions in transit aid attributable to reductions in the metropolitan commuter transportation mobility tax authorized under Article 23 of the Tax Law would be offset through alternative sources that will be included in the state budget

Section 4 of this part states that it would take effect immediately, provided however, that section 1 of this part and the amendments in section 2 of this part that concern employers would not take effect until April 1, 2012.

Existing law

The current definition of "employer" covers those with annual payroll expenses in excess of $2,500 per quarter. The current tax rate on.payroll expenses is 0.34 percent and 0.34 percent of net earnings from self-employment attributable to the MCTD. Self-employed individuals with earnings attributable to the MCTD of $10,000 or less are exempt from the mobility tax.

Additionally, although they are required to pay the MTA mobility tax in the first instance, under section 3609-g of the Education Law, school districts are eligible for State reimbursement of MTA payroll tax payments.

Statement in support

This part of the bill will promote the State's economic growth, in particular by focusing on the needs of small businesses, which are the engine for job creation. The current law requires businesses in the New York metropolitan area, regardless of size, to pay a 0.34 percent mobility tax on their payroll. In recognition of the fact that this mobility tax disproportionately burdens small businesses, these amendments eliminate the tax on the smallest businesses and

create a progressive structure for larger organizations. The reduction or elimination of payroll taxes decreases the cost to businesses of hiring new employees and allows businesses to use the funds they would have paid out in taxes to invest in development instead. In addition, this part of the bill both eliminates the rebate structure far the public school tax exemption and ensures tax parity between private and public schools.

At this time, it is of utmost importance that the State take responsibility far improving conditions for economic growth.

Legislative history

This is a new proposal.

Budget implications

This proposal would reduce mobility tax collections by $310,000,000 annually.

Effective date

This part of the bill would take effect immediately, provided however, the amendments applicable to employers would take effect for the quarter beginning April 1, 2012.

Part C

Summary of provisions

Section 1 of this part would amend Tax Law § 210.1(a)(vi) to reduce the tax rate on eligible qualified New York manufacturers from 6.5 percent to 3.25 percent of the taxpayer's entire net income base for the taxable years beginning on or after January 1, 2012, and before January 1, 2015. The rate would return to 6.5 percent for subsequent tax years. This amendment would also require the Commissioner of the Department of Taxation & Finance to establish guidelines and criteria for manufacturer eligibility. The guidelines and criteria would include, but not be limited to, a number of factors such as regional unemployment, the economic impact that manufacturing has on the surrounding community, and population decline within the region and median in which the manufacturer is-located. in setting the criteria, the Commissioner of the Department of Taxation & Finance would be required to endeavor to keep the total annual cost of the lower tax rates to the State to no more than $25,000,000.

Section 2 of this part would amend Tax Law § 210(1)(c)(ii) such that for the taxable years beginning on or after January 1, 2012, and before January 1, 2015, the applicable tax rate for the alternative minimum tax would be 0.75 percent of the taxpayer's minimum taxable income base far eligible qualified New York manufacturers.

Section 3 of this part would amend Tax Law § 210(1)(d) by adding a new paragraph 5 such that for the tax years beginning on or after January 1, 2012, and before January 1, 2015, the amounts prescribed in Tax Law §§ 210(1)(d)(1) and 210(1)(d)(4) as the fixed dollar minimum tax

for eligible qualified New York manufacturers will be one-half of the amount stated in those subparagraphs.

Section 4 of this part states that the act would take effect immediately.

Existing law

Qualified New York manufacturers are currently subject to a 6.5 percent tax rate on their entire net income base, a 1.5 percent tax rate on their minimum taxable income base, and a fixed dollar minimum tax generally ranging from $25 to $5000, depending on the size of the taxpayer's New York receipts.

Statement in support

This proposal would promote economic growth for the State. Over the last decade, the number of manufacturers in New York has declined by thirty-two percent. Plants have relocated, in part, to states where the tax structure is more favorable to them, taking along nearly twenty-nine percent of the state's manufacturing jobs.

By reducing the tax rate on manufacturers by fifty percent, this modification to the tax code will help New York retain the manufacturers still located in the state. It will also increase the State's attractiveness to new businesses, especially when viewed in conjunction with the state's existing skilled workforce and new low-cost energy programs.

In addition, as a result of the tax savings from this part of the bill, manufacturers will be able to direct more capital to research and development, giving them an advantage in the marketplace of innovations. Moreover, manufacturers will have more funds available to hire new employees. This combination of support for industry and job creation is key to laying a stable foundation for long-term economic recovery.

Legislative history

This is a new proposal.

Budget implications

This proposal would have an annual fiscal impact of $25,000,000.

Effective date

This proposal would be effective immediately.

Part D

Summary of provisions

Section 1 of this part would add a new § 25-a to the Labor Law to grant the Commissioner of Labor the authority to administer the New York Youth Works Tax Credit program to provide tax incentives to "qualified employers" employing at-risk youths in part-time and

full-time positions in the years 2012 and 2013. Under this new program, the Commissioner may allocate up to $25 million in tax credits.

A qualified employer would be entitled to a tax credit equal to $500 a month for up to 6 months for each qualified employee the employer employs in a full-time job, or $250 a month for up to 6 months for each qualified employee the employer employs in a part-time job of at least 20 hours a week. Such an employer would also be entitled to $1,000 dollars for each qualified employee who is employed for at least an additional 6 months by the qualified employer in a full-time job, or $500 for each qualified employee employed for at least an additional 6 months by the qualified employer in a part-time job of at least 20 a week. To participate in the program, an employer must submit an application to the Commissioner after January 1, 2012, but no later than June 1, 2012. Qualified employees must begin employment on or after January 1, 2012 and no later than July 1, 2012.

The Commissioner is empowered to establish guidelines and criteria that specify requirements for employers to participate in the program, including the types of industries in which the employers engage and to give preference to employers engaged in demand occupations or industries or employers located in regional growth sectors, including those identified by the Regional Economic Development Councils, such as clean energy, health care, advanced manufacturing, and conservation.

Section 2 of this part amends Tax Law § 210 to set out the amount and requirements for application of the New York Youth Works Tax Credit. These credits would be allowed for the taxable year beginning on or after January 1, 2012 and before January 1, 2013 or the taxable year beginning on or after January 1, 2012 and before January 1, 2012, respectively.

Section 3 of this part amends Tax Law § 606 to add a new subsection (tt) that provides that a qualified employer shall be allowed a credit against the tax imposed by Article 22 of the Tax Law equal to $500 a month for up to 6 months for each qualified employee employed in a full-time job, or $250 a month for up to 6 months for each qualified employee employed in a part-time job of at least 20 hours a week, and $1,000 for each qualified employee employed for at least an additional 6 months by the qualified employer in a full-'time job or $500 for each qualified employee employed for at least an additional 6 months by the qualified employer in a part-time job of at least 20 hours per week.

Section 4 of this part amends subparagraph B of paragraph 1 of subsection (i) of Section 606 of the Tax Law to add a new clause xxxiii permitting application of the New York Youth Works Tax Credit.

Section 5 of this part provides for an immediate effective date.

Existing law

This is a new proposal that creates a new tax credit.

Statement in support

This part of the bill would facilitate the employment of young disadvantaged workers and would benefit, with a tax credit, qualified employers hiring these new workers.

Even in a boom economy,younger workers have higher levels of unemployment than those aged 35 and older. Recent unemployment levels have escalated to all-time highs as a result of the prolonged and significant economic downturn of the past few years. According to the Department of Labor unemployment among the state's youth is more than 25 percent over a twelve-month period. Unemployment for minority youth in New York ranges from 35-40 percent.

Exacerbating this problem is the fact that many of these youth also live in poverty, particularly in larger urban areas. Overall, approximately 2.3 million young people between the ages 16 and 24 live in poverty in New York State; of particular note is the fact that approximately 42 percent of these children reside in the state's top ten urban areas, all of which are areas in which this benefit is available.

Unemployed and living in poverty, these young people face a self-fulfilling prophecy of failure. They lack work experience and face limited educational opportunities. Thus, it is difficult for them to envision a future where they will be self-sufficient.

This is a crisis within a crisis that needs to be addressed immediately.

The NY Youth Works program will get unemployed disadvantaged youth to work by providing businesses with hiring incentives toward a goal of permanent unsubsidized employment. Unemployed youth will also be provided with work readiness and skills training so that they are matched to employment.

A job, particularly a job in a sector that is projected to grow, will provide them not only with financial support and work experience, but also with a very important first step toward a career and a way out of poverty.

LEGISLATIVE HISTORY

This is a new proposal.

Budget implications

This proposal is necessary to promote job growth in the State, and has an associated cost to the State Financial Plan of $20 million in State fiscal year 2012-13, and $5 million in State fiscal year 2013-14.

Effective date

This part would take effect immediately.

Part E

Summary of provisions

Section 1 of this part would amend the Economic Development Law by adding a new Article 20, Empire State Jobs Retention Program. The article would contain nine sections, numbered 420 to 429.

Section 420 would set forth the short title of the article.

Section 421 would contain the legislative findings.

Section 422 would define certain terms used in the article.

Section 423 would provide for eligibility for the Empire State Jobs Retention Program.

Subdivision 1 of section 423 would require that a business entity operate in New York State predominantly in one of seven categories of "strategic industry" enumerated in the subdivision.

Subdivision 2 of section 423 states that the Commissioner will make eligibility determinations based on an analysis of the entity's business activity.

Subdivision 3 of section 423 would require participants in the program to be located in a county in which an emergency has been declared, demonstrate substantial physical damage and economic harm resulting from the event that caused the emergency, and have at least one hundred full-time equivalent jobs in the county where the emergency has been declared.

Subdivision 4 of section 423 would exclude certain types of business entities from eligibility for the tax credit described in the article.

Subdivision 5 of section 423 would require business entities to be in compliance with worker protection laws and regulations, and not owe past due state taxes. In addition, the businesses may not owe local property taxes for any year preceding the one in which it applies to participate, to be eligible for the program.

Section 424 would describe the application and approval process for a business entity to participate in the program.

Section 425 would provide for the Empire State Jobs Retention Program credit, which participants in the program would be eligible to claim. This section prescribes the method of calculating the amount of the credit, makes the credit refundable, addresses availability of the credit should a participant not meet eligibility requirements in any year, and states that the credit may not be claimed for a tax year before 2012. It also addresses credit eligibility as.it relates to other articles and sections in the chapter.

Section 426 would set forth the powers and duties of the Commissioner with regard to the program.

Section 427 would establish records maintenance requirements for program participants.

Section 428 would describe reporting requirements for participants and the Commissioner.

Section 429 would provide that the cap on the amount of the cap on the amount of tax credits issued by the Commissioner under the Program applies to these credits.

Section 2 of this part would amend the Tax Law by adding a new section 36, which would create the rules governing the jobs retention program credit. It also lists cross-references in the chapter.

Section 3 of this part would amend Tax Law § 210 by adding a new subdivision 44, which would allow general business corporations to claim the credit.

Sections 4 and 5 of this part would amend Tax Law § 606 by adding a new subsection (tt) which would allow the credit to be claimed by taxpayers under the personal income tax.

Section 6 of this part would amend Tax Law § 1456 by adding a new subsection (y) to allow banking corporations to claim the credit.

Section 7 of this part would amend Tax Law § 1511 by adding a new subdivision (bb) to allow insurance corporations to claim the credit.

Section 8 states that the act would take effect immediately, provided however that sections two, three, four, five, six, and seven of the act will apply to taxable years beginning on or after January 1, 2012.

Existing law

This is a new legislative proposal.

Statement in supoprt

Given the damage caused by Hurricane Irene and Tropical Storm Lee, it is imperative to mitigate the impact of natural disasters on these businesses and help them to continue operating in the state and employing as many impacted New Yorkers as possible.

In order to accomplish those goals and ensure that opportunities for future economic growth exist, the Empire State Jobs Retention Program will offer qualifying businesses State tax credits equal to the product of the gross wages paid for impacted jobs and 6.85 percent. This credit will give existing businesses the capital they need to retain and hire more individuals in the case of events leading the governor to declare an emergency. This program will also make sure that New York can continue to attract new employers, who will know that the state is prepared to assist them in case of an emergency. in addition to benefiting from new employment opportunities, communities employed by these businesses will be more resilient if an emergency occurs, because this program will help safeguard their jobs.

Legislative history

This is a new proposal.

Budget implications

As the program uses funds available under the excelsior job program act, the cost is reflected in the current financial plan estimates for the excelsior job program.

Effective date

This proposal would take effect immediately.

Part F

Summary of provisions

Section 1 of this part would provide the title of the act: "Infrastructure investment act".

Section 2 of this part states the Legislature's findings and declarations.

Section 3 of this part sets forth applicable definitions for language used in the bill.

Section 4 of this part would allow an authorized state entity to use design build contracts for capital projects related to the State's physical infrastructure, provided that for contracts entered into by the Department of Transportation, the Office of Parks, Recreation and Historic Preservation and the Department of Environmental Conservation, the total cost of each project shall not be less than $1,200,000.

Section 5 of this part would establish a two-step method to be used by an authorized state entity to select an entity with which to enter into a design build contract.

Section 6 of this part would require that any contact entered into pursuant to the Act include a clause requiring that any professional services regulated by Articles 145, 147, and 148 of the Education Law will be performed by and, where appropriate, stamped and sealed by a professional licensed in accordance with such articles.

Section 7 of this part would provide that construction for each capital project undertaken pursuant to this section would be deemed a "public work" to be performed in accordance with certain provisions of the Labor Law and be subject to enforcement of the prevailing wage requirements by the New York State Department of Labor.

Section 8 of this part states that, if otherwise applicable, § 222 of the State Labor Law and § 135 of the State Finance Law would apply to capital projects undertaken pursuant to this act.

Section 9 of this part would require that contracts entered into pursuant to the act comply with the objectives and goals of minority and women-owned businesses pursuant to article 15-A of the Executive Law, or, in the case of projects receiving federal aid, comply with federal requirements for disadvantaged business enterprises.

Section 10 of this part would provide that capital projects undertaken pursuant to this Act would be subject to the requirements of article 8 of the Environmental Conservation Law and, where applicable, the national environmental policy act.

Section 11 of this part specifies that, if otherwise applicable, sections 139-d, 139-j, 139-k, paragraph 1 of subdivision 1 and paragraph g of subdivision 9 of section 163 of the State Finance Law will govern capital projects undertaken pursuant to this act.

Section 12 of this part would ensure that submissions of proposals or responses, or execution of a contract pursuant to this act, will not to be construed as violations of section 6512 of the Education Law.

Section 13 of this part would ensure that the act does not interfere with provisions of existing contracts, including any existing contract with or for the benefit of the holders of the obligations of the authorized state entity, or rights to award contracts as otherwise permitted by law.

Section 14 of this part would authorize alternative construction contract awarding processes and details the rules governing such processes.

Section 15 of this part would permit authorized state entities to maintain a list of prequalified contractors who are eligible to submit a proposal pursuant to the act and contains a list of criteria that the authorized state entity may take into consideration for prequalification. This section also would permit a contractor who is denied prequalification or whose prequalification is revoked or suspended to appeal such decision, would provide that if a suspension extends for more than three months, it will be deemed a revocation, and would authorize the authorized state entity to proceed with the contract award during any appeal.

Section 16 of this part states that provisions of this act will not interfere with the existing powers of New York State public entities to use alternative project delivery methods.

Section 17 of this part provides that the act will take effect immediately and will be deemed repealed three years after the date of enactment, provided that projects with requests for qualifications issued prior to such repeal will be permitted to continue under this act notwithstanding such repeal.

Existing law

At present, the Department of Transportation, Thruway Authority, Office of Parks, Recreation and Historic Preservation, Department of Environmental Conservation, and the Bridge Authority do not have authority to employ a design build project delivery method.

Statement in support

Investment in infrastructure is an essential part of a broader policy to stimulate economic growth. The advantages of design build,

particularly the efficiency and cost savings it could bring to capital projects, make it an essential tool to facilitate infrastructure investment. Design build is a project delivery method in which a single contract is executed with a single entity providing engineering and construction services. It has proven especially useful for expediting infrastructure projects and. accelerating capital investment; essential ingredients to spur growth,

Design build processes achieve this by (1) overlapping design and construction, making it possible for materials and equipment procurement and construction work to begin sooner, (2) reducing potential for duplication of effort, (3) allowing for focus on best value rather than on negotiated design cost and the initial low bid, (4) reducing the potential for contractual disputes, and (5) involving the contractor during design, an arrangement that helps create conditions for innovation in construction technologies. Moreover, these methods disperse some of the State's risk by making the contractor solely responsible for the completed product, and providing other motivation for the contractor to advance a quality, on-time project throughout the design and construction process.

New York has a backlog of unmet infrastructure and capital needs and limited funds to pay for them. Design-build has the potential to create jobs and accelerate capital investments throughout the State.

Legislative history

This is a new proposal, though similar legislation has been proposed in prior years.

Budget implications

The fiscal impact, of this pilot program cannot be projected. However, in addition to job creation through the acceleration of projects, there will be economic benefits to residents and communities if projects are completed more quickly or additional projects are completed.

Effective date

The proposal would take effect immediately.

Part G

Summary of provisions

Section 1 of this part states the title of the act: "Hurricane Irene and Tropical Storm Lee Relief Act."

Section. 2 of this part would define terms used in the act.

Section 3 of this part would set the time period within which a municipality eligible to exercise the provisions of this act must pass a resolution adopting the provisions of this act.

Section 4 of this part would detail the rules governing how assessment relief would be granted under this act, what a property

owner must do in order to receive relief, and the responsibilities of the assessor in implementing the provisions of the act.

Section 5 of this part would provide that any school districts in counties eligible for assessment relief under this act will not be responsible for any reduction, incurred due to the provisions of this act, instate aid that would have been paid pursuant to § 1306-a of the Real Property Tax Law.

Section 6 of this part would authorize the Director of the Office of Real Property Tax Services, or other chief administrative official of that office, to develop a guidance memorandum to assist assessing units with the implementation of the act.

Section 7 of this part states that this act would take effect immediately and be deemed to have been in full force and effect on or after August 26, 2011.

Existing law

The current law determines property value for the purposes of 2012 county, city, town and village taxes based on the assessed value as of March 1, 2011. This proposal, which could be adopted at the option of a local taxing entity, would allow a taxing entity to reassess value at a later date for properties that lost 58 percent or more of their value as a result of Hurricane Irene or Tropical Storm Lee, or both.

Statement in support

Hurricane Irene and Tropical Storm Lee caused catastrophic damage across the state. This legislation provides relief in the form of a property tax reduction for those New York taxpayers whose property was substantially damaged by the storms.

Legislative history

This is a new proposal.

Budget implications

This is a local option, So there would be no State budget implications.

Effective date

Upon enactment, this proposal would be deemed to have been in effect as of August 26, 2011.

Part H

Summary of provisions

Section 1 of this part would create the grant program, set forth the types of grants available under the program, and lay out eligibility criteria.

Subsection 1(a) would establish a grant program open to small businesses, farms, multiple dwellings, and not-for-profit organizations that sustained direct physical flood damage as a result of Hurricane Irene or Tropical Storm Lee. This subsection sets the limit for grant size and specifies the types of costs the funds can be used to cover.

Subsection 1(b) would direct Empire State Development to administer the grant program of subsection (a) and empower the agency to establish, as it deems necessary, grant guidelines and additional eligibility criteria. This subsection would also require Empire State Development to give preference to applicants demonstrating the greatest need. The total grant program would be limited to $21,000,000.

Subsection 2(a) would direct Empire State Development, in consultation with the Department of Environmental Conservation, to administer a grant program for counties for flood mitigation or flood control projects in creeks, streams, and brooks. Only counties included in federal disaster declarations for Hurricane Irene or Tropical Storm Lee would be eligible to participate in this program.

Subsection 2(b) would cap the grant program established in 2(a) at $9,000,000 and empower Empire State Development to establish grant guidelines and additional eligibility criteria as it deems necessary. This subsection would also direct Empire State Development to give preference to applicants that demonstrate the greatest need, and to prioritize remediation projects in cases where failure to undertake such projects means risking flooding in the future. It would also set minimum and maximum grant amounts.

Subsection 3 of this part would cover distribution of additional funds, up to $20,000,000, according to a plan to be developed by the Director of the Budget. The section would require the Director, in consultation with the Temporary President of the Senate and the Speaker of the Assembly, to develop a plan and criteria for distribution of such additional funding to counties included in the federal disaster declarations for Hurricane Irene or Tropical Storm Lee. This Section would also grant discretion to the Director of Budget to direct or authorize any other State agency to assist in administration and distribution of the grants.

Section 2 of this part states that the act would take effect immediately.

Existing law

There is no current law addressing this issue.

Statement in support

The impact of Hurricane Irene and Tropical Storm Lee, storms which occurred within less than two weeks of each other late this past summer, was widespread and severe throughout the State. The struggle to recover from these storms continues three months later. Repair and remediation of flood damage, and work to prevent future flooding is of particular importance. Grants made available by this act will

provide much-needed assistance to individuals and counties in New York which experienced flood damage.

Legislative history

This is a new proposal.

Budget implications

This part would establish a grant program that may distribute up to $50,000,000 to spur recovery efforts in regions of the state affected by Hurricane Irene and Tropical Storm Lee. Anticipated expenditures for this new grant program would be reflected in the next quarterly update to the Financial Plan which will be submitted as part of the Governor's Executive Budget for Fiscal Year 2012-2013.

Effective date

This proposal would take effect immediately.

Part I

Summary of provisions

Section 1 of this part would amend section 1326-b to allow for payment of school taxes in installments under certain circumstances, even where a school district does not usually permit payment of taxes in installments. If a flood or other natural disaster affects a community during the six months preceding the due date for that community's school district's school taxes, and the school district is located in a county included in a federal disaster declaration, the school board would be permitted to pass a resolution allowing for payment of taxes in installments and setting the applicable due dates. This section would also set rules for the implementation of such resolutions. in addition, for school aid payments for the 2011-2012 school year, the State would be authorized to advance school aid payments or portions thereof to any school district that adopts a resolution pursuant to this section of the Real Property Tax Law.

Section 2 of this part states the effective date.

Existing law

The law currently allows installment taxes subject to local approval, but it does not provide for such an arrangement on an emergency basis.

Statement in support

In the event of a flood or other disaster, it is imperative to have tools that allow for a multifaceted approach to relief for affected communities. This bill would provide a tool at local option that can serve a targeted local purpose.

Legislative history

This is a new proposal.

Budget implications

This is a local option, so there would be no budget implications for the State.

Effective date

This proposal would take effect immediately; however, the authorization to advance school aid payments would expire on June 30, 2012.

Part J

Summary of provisions

Section 1 of this part would amend Executive Law § 182, as will be amended in 2011 in proposed legislative bills S. 4257-C and A. 6766-C, to permit the diversion of funds dedicated for use by the MTA and NYCTA if the Governor declares a fiscal emergency, communicates such emergency to the Temporary President of the Senate and the Speaker of the Assembly, and legislation is passed by both houses authorizing such diversion.

Section 2 provides the effective date.

Existing law

The chapter that this would amend would permit the re-allocation of such funds only by legislation authorizing such a re-allocation.

Statement in support

This legislation would protect the funds assigned to the MTA and NYCTA by providing that only in the event that the Governor declares a fiscal emergency, and there is subsequent legislative authorization, will re-allocation of such funds be permitted.

Legislative history

This is a new proposal.

Budget implications

This proposal has no fiscal impact on the state.

Effective date

This proposal would take effect on the same date as the chapter of the Laws of 2011 amending the Executive Law by adding a new section 182 takes effect.

Part K

Summary of provisions

Section 1 of this part would amend Ch. 260, Laws of 2011 § 13 (b) to provide that contracts awarded pursuant to the SUNY 2020 Challenge

Grant Program, enacted this year, undertake a project labor agreement pursuant to Labor Law § 222 if a study performed by the contracting entity determines, considering various statutorily prescribed factors, that such an agreement would benefit the construction, reconstruction, renovation, rehabilitation, improvement or expansion undertaken through reduced risk of delay, potential cost savings or potential reduction in the risk of labor unrest in light of any pertinent local history thereof.

Section 2 of this part provides that this chapter amendment would be effective immediately.

Existing law

The initial legislation provided that such contracts, if not otherwise subject to Labor Law § 222, would be subject to State Finance Law 135.

Statement in support

The portion of Ch. 260, Laws of 2011 which this chapter amendment alters did not accurately reflect the intent of the legislature and executive. This chapter amendment conforms the law to the original understanding of the parties.

Legislative history

This is a new proposal.

Budget implications

This proposal has no fiscal impact on the state.

Effective date

This proposal would take effect immediately.