senate Bill S5509A

Amended

Relates to the public safety communications surcharge; repealer

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 26 / May / 2011
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 10 / Jun / 2011
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 10 / Jun / 2011
    • PRINT NUMBER 5509A
  • 04 / Jan / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 18 / Apr / 2012
    • REPORTED AND COMMITTED TO FINANCE
  • 24 / Apr / 2012
    • AMEND AND RECOMMIT TO FINANCE
  • 24 / Apr / 2012
    • PRINT NUMBER 5509B

Summary

Relates to the public safety communications surcharge and amends the distributions of monies collected pursuant to such surcharge and provides for the repeal of certain provisions relating thereto.

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Bill Details

See Assembly Version of this Bill:
A8489
Versions:
S5509
S5509A
S5509B
Legislative Cycle:
2011-2012
Current Committee:
Senate Finance
Law Section:
Tax Law
Laws Affected:
Rpld & add ยง186-f sub 6, Tax L

Votes

5
0
5
Aye
0
Nay
3
aye with reservations
0
absent
0
excused
0
abstained
show Investigations and Government Operations committee vote details

Sponsor Memo

BILL NUMBER:S5509A

TITLE OF BILL:
An act
to amend the tax law, in relation to the public safety communications
surcharge and repealing
certain provisions of such law relating thereto

PURPOSE:
Specifies what percentage of the public safety communications
surcharge funds shall go to counties and local governments, and what
percentage shall go to the state.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Repeals Subdivision 6 of
section 186-f of the tax law and a new subdivision 6 is added.

New subdivision 6 specifies that:

58.3% of surcharge funds shall be used for the provision of grants or
reimbursements to counties for the development, including next
generation 911, consolidation, or operation of public safety
communications systems or networks designed to support interoperable
communications for first responders.

41.7% shall be jointly apportioned to the state police, the New York
State emergency services revolving loan fund, and other uses by the
state.

Section 2: provides the effective date.

JUSTIFICATION:
New York passed a law in 1991 that placed a 70 cent
surcharge on cell phone bills, and in 2002 raised the tax to $1.20
per cell phone.
Funding was intended to be transferred from the state police to local
governments to pay for 911 call center services and technology
upgrades. For years, however, the state has been diverting these
funds for other purposes.
A 2002 audit by then-Comptroller H. Carl McCall identified and
criticized the state police for spending the funds on dry cleaning,
conferences, pens, decals, garbage removal and other miscellaneous
items unrelated to 911 call center upgrades. The law was changed in
response, but failed to require that wireless surcharge funds be
diverted to local governments.

The New York State 911 Coordinators Association estimates that New
York State has collected over $1.2 billion in surcharges since 1994,
and of the $190 million collected last year the state transferred
only $9.3 million to county governments.

In 2004 Congress passed a law that limited 911 grants to states that
were improperly diverting wireless tax revenue and the U.s.
Government Accountability Office (GAO) has requested and received no
response from New York state officials over the course of two
investigations into the


collection and use of funds for the 50 States and District of Columbia
wireless Enhanced 911 Services.

County governments have been forced to raise sales and/or property
taxes to cover for Albany's improper diversion of these funds. In
addition to being irresponsible, such improper allocation of funds
may be illegal. For example, the Tennessee Attorney General recently
concluded that raiding of 911 funds in that state was illegal based
on the Federal Enhance 911 Act of 1994.

Removing discretion from the state in deciding how wireless surcharge
funds will be allocated will ensure local governments receive the
funds necessary to upgrade 911 call centers and ensure counties are
not forced to raise property and/or sales taxes or fees to cover for
Albany's improper withholding of public safety communications
surcharge funds.

PRIOR LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect on the one hundred
twentieth day after it shall have become law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5509--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              May 26, 2011
                               ___________

Introduced  by Sen. GRISANTI -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment  Operations  --  committee  discharged,  bill  amended,   ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to amend the tax law, in relation to the public safety communi-
  cations surcharge and repealing certain provisions of such law  relat-
  ing thereto

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 6 of section 186-f of the tax law  is  REPEALED
and a new subdivision 6 is added to read as follows:
  6.  DISTRIBUTION.  THE  MONIES COLLECTED FROM THE SURCHARGE IMPOSED BY
THIS SECTION SHALL BE DISTRIBUTED IN THE FOLLOWING MANNER:
  (A) FIFTY-EIGHT  AND  THREE-TENTHS  PERCENT  SHALL  BE  USED  FOR  THE
PROVISION  OF  GRANTS OR REIMBURSEMENTS TO COUNTIES FOR THE DEVELOPMENT,
CONSOLIDATION, OR OPERATION OF PUBLIC SAFETY COMMUNICATIONS  SYSTEMS  OR
NETWORKS  DESIGNED TO SUPPORT STATEWIDE INTEROPERABLE COMMUNICATIONS FOR
FIRST RESPONDERS, INCLUDING  NEXT  GENERATION  911,  TO  BE  DISTRIBUTED
PURSUANT  TO STANDARDS AND GUIDELINES ISSUED BY THE STATE. ANNUAL GRANTS
MAY CONSIDER COSTS BORNE BY A MUNICIPALITY RELATED TO  THE  ISSUANCE  OF
LOCAL PUBLIC SAFETY COMMUNICATIONS BONDS PURSUANT TO SECTION TWENTY-FOUR
HUNDRED  THIRTY-TWO OF THE PUBLIC AUTHORITIES LAW, WHEN THE MUNICIPALITY
HAS QUALIFIED AS AN APPROVED PARTICIPANT IN  A  STATEWIDE  INTEROPERABLE
COMMUNICATIONS  SYSTEM  UNDER THE STANDARDS AND GUIDELINES ISSUED BY THE
STATE, AND MAINTAINS COMPLIANCE WITH SUCH STANDARDS AND GUIDELINES.  THE
GRANT  AMOUNT WILL BE PRESCRIBED PURSUANT TO AN AGREEMENT WITH THE MUNI-
CIPALITY, AND MAY NOT EXCEED THIRTY PERCENT OF THE ANNUAL COST BORNE  BY
THE MUNICIPALITY IN RELATION TO SUCH BONDS; AND
  (B)  FORTY-ONE  AND SEVEN-TENTHS PERCENT SHALL BE JOINTLY APPORTIONED,
PURSUANT TO RULES AND REGULATIONS PROMULGATED BY THE  COMMISSIONER,  TO:
(I) THE STATE POLICE, (II) THE NEW YORK STATE EMERGENCY SERVICES REVOLV-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10600-03-1

S. 5509--A                          2

ING LOAN FUND, (III) PROVIDE FOR THE COSTS OF DEBT SERVICE FOR BONDS AND
NOTES  ISSUED  TO  FINANCE  EXPEDITED DEPLOYMENT FUNDING PURSUANT TO THE
PROVISIONS OF SECTION THREE HUNDRED THIRTY-THREE OF THE COUNTY  LAW  AND
SECTION SIXTEEN HUNDRED EIGHTY-NINE-H OF THE PUBLIC AUTHORITIES LAW, AND
(IV)  PROVIDE  FOR SERVICES AND EXPENSES THAT SUPPORT THE OPERATIONS AND
MISSION OF THE DIVISION OF HOMELAND SECURITY AND EMERGENCY  SERVICES  AS
APPROPRIATED BY THE LEGISLATURE.
  S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law; provided, however, that effective immediate-
ly,  the  addition,  amendment  and/or  repeal of any rule or regulation
necessary for the implementation of this act on its  effective  date  is
authorized  and  directed  to  be  made  and completed on or before such
effective date.

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